Noontime Seminar: DoD Research Funding Processes John Albrecht 15 April 2014.
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Transcript of Noontime Seminar: DoD Research Funding Processes John Albrecht 15 April 2014.
Noontime Seminar: DoD Research Funding Processes
John Albrecht15 April 2014
Noontime Seminar: DoD Research Funding Processes
John Albrecht15 April 2014
DoD Major Appropriation Categories
APPN CAT
FUNDING POLICY
RDT & E
PROC (SCN)
O & M
MILPER
MILCON
SCOPE
RDT&E Activities & Expenses
End items >= $100K system unit cost, All Centrally managed items, Initial Spares, Labor for certain production-related functions (e.g., item assembly, quality assurance)
Replenishment Spares, Fuel, Civilian Salaries, Construction Projects < $750K, Travel, Non-centrally managed end items < $100K system unit cost
Military Personnel Expenses
Construction Projects >= $750K
INCREMENTAL
FULL
ANNUAL
ANNUAL
FULL
DoD Appropriation Structure
Projects
RDT&E
BudgetActivity
ProgramElements
Procurement
BudgetActivity
Line Item
Sub Activity
MILPER
BudgetActivity
ActivityGroup
Sub Activity
O&M
ActivityGroup
BudgetActivity
Project
MILCON
BudgetActivity
ActivityGroup
DoD Appropriation Structure
Projects
RDT&E
BudgetActivity
ProgramElements
Procurement
BudgetActivity
Line Item
Sub Activity
MILPER
BudgetActivity
ActivityGroup
Sub Activity
O&M
ActivityGroup
BudgetActivity
Project
MILCON
BudgetActivity
ActivityGroup
DoD Research Funding Sources• 6.1, 6.2, 6.3 (basic, applied, and demonstration level research)
– 6.1 is the closest DoD equivalent to NSF-style funding (ONR, AFOSR, ARO, DARPA, …) – primarily grants
– 6.2 typically supports “big program” winners (e.g. microelectronics programs taking devices to circuits) or first attempts at applications. Spans the services (AFRL, ONR, DARPA, ARL, …)
• May be declared fundamental campus research OR come with restrictions (mandatory pre-pub review, etc)
• Often is ITAR and otherwise export controlled• Solicitations (such as BAAs) will contain language discussing how these are
handled and the contracting officers will adhere
– 6.3 is advanced development money = functional prototypes, heavy deliverables, transition partners to the industrial base (ONR, DARPA, MDA, AFRL, NAVSEA, ARL (long list))
• By law, all 6.3 money from DoD comes with restrictive clauses that cannot be removed by the contracting officer
• Very likely to be export controlled, at a minimum
DoD Research Funding Sources• 6.1, 6.2, 6.3 (basic, applied, and demonstration level research)
– 6.1 is the closest DoD equivalent to NSF-style funding (ONR, AFOSR, ARO, DARPA, …) – primarily grants
– 6.2 typically supports “big program” winners (e.g. microelectronics programs taking devices to circuits) or first attempts at applications. Spans the services (AFRL, ONR, DARPA, ARL, …)
• May be declared fundamental campus research OR come with restrictions (mandatory pre-pub review, etc)
• Often is ITAR and otherwise export controlled• Solicitations (such as BAAs) will contain language discussing how these are
handled and the contracting officers will adhere
– 6.3 is advanced development money = functional prototypes, heavy deliverables, transition partners to the industrial base (ONR, DARPA, MDA, AFRL, NAVSEA, ARL (long list))
• By law, all 6.3 money from DoD comes with restrictive clauses that cannot be removed by the contracting officer
• Very likely to be export controlled, at a minimum
DoD Appropriation Structure
Projects
RDT&E
BudgetActivity
ProgramElements
Procurement
BudgetActivity
Line Item
Sub Activity
MILPER
BudgetActivity
ActivityGroup
Sub Activity
O&M
ActivityGroup
BudgetActivity
Project
MILCON
BudgetActivity
ActivityGroup
Additional Research Funding Sources• SBIR/STTR – Small Business Innovative Research, Small
business Technology TransfeR– SBIR/STTR has its own opportunity website outside of fed biz ops– SBIR has to be >50% at the business– STTR can have large university components– Phase 2s are subject to funds availability– SBIR is not appropriated, it is an unfunded mandate that is a
percentage tax internal to every agency. (It comes out of your 6.1 money too!)
– SBIR has favorable IP rules that do not enforce govt use claims and restrictions
– SBIR/STTR topics can and do come with export control restrictions
• Non-traditional Examples: Director’s Innovation Initiative (NRO), Joint DoD programs with other agencies, Manufacturing Initiatives
Other variations of funding…• MURI – Multidisciplinary University Research Initiative
– Each service’s 6.1 unit proposes topics (annually)– Office of the Secretary of Defense chooses– 3 year base, 2 year option at ~$1.5M/year– Often large teams – Does not come out of the base budget of the unit
• Internal forms of MURI-like activity– Example: AFOSR BRI topics– Large programs formed within an agency to reward/punish program quality
and execution• Congressional Insert Items
– Significant change over last decade often are forcibly inserted as unfunded mandates (core budgets have to be re-worked to accommodate them) Result: Your lab friends my find them onerous.
– Scrutiny on execution has become intense from service leaders• Labs
– Caution: Labs influence more money than they spend on external research (NRL, AFRL are primarily using 6.2 to service salaries at this point).
– No external 6.1 funding, but they can have great influence.
Other variations of funding…• MURI – Multidisciplinary University Research Initiative
– Each service’s 6.1 unit proposes topics (annually)– Office of the Secretary of Defense chooses– 3 year base, 2 year option at ~$1.5M/year– Often large teams – Does not come out of the base budget of the unit
• Internal forms of MURI-like activity– Example: AFOSR BRI topics– Large programs formed within an agency to reward/punish program quality
and execution• Congressional Insert Items
– Significant change over last decade often are forcibly inserted as unfunded mandates (core budgets have to be re-worked to accommodate them) Result: Your lab friends my find them onerous.
– Scrutiny on execution has become intense from service leaders• Labs
– Caution: Labs influence more money than they spend on external research (NRL, AFRL are primarily using 6.2 to service salaries at this point).
– No external 6.1 funding, but they can have great influence.
Where do I look?• Federal Business Opportunities
– https://www.fbo.gov/– https://www.sbir.gov/– Proposer’s Day announcements– Proposal Abstract requests (Do This. Always.)
• Agency websites are typically very responsive about posting new solicitations or funding policies and procedures
• Existing programs– Existing programs have money.– Large 6.2 programs generate basic research topics– Stay current with the literature and any public
program reviews in your area.• There are dedicated conferences to show off DoD programs
Key Elements of DoD Proposals -1• Read the solicitation carefully and completely
– Technical specifications and any mandatory thresholds– Proposal structure expectations and preparation instructions– FAQs are posted, public forums are often held– What constitutes technical compliance
• Complete solutions only?• Are any technical approaches specifically excluded?
• Technical innovation and responsiveness to the solicitation– Does the proposed solution break down the technical challenges and
systematically address them?– Does the proposal demonstrate a sound understanding of the current
state of practice?– Is there existing data to support the claimed research path?
Key Elements of DoD Proposals• Clear SOW that has tasks supporting technical solution
– Do the tasks match the proposed solutions to the key technical challenges?– Are the resources clearly identified (people/time/money) and adequate? Do they
match the cost proposal and schedule?– Are the tasks aligned with the schedule (critical path, long-lead items)?– Recommend marking SOW on a task basis if there is a mix of fundamental
research and export controlled or restricted work
• Schedule and project structure– If you are bidding a 6.2 project, install Microsoft Project and plot a gantt chart– Does it match the SOW and cost volume of the proposal exactly?
• Cost Proposals– Is the formatting compliant with the solicitation (non-compliance = rejection)– Does it match up with the SOW and Schedule– Are the sub-contractor proposals in place and compliant– Is it realistic? DoD proposals that are incorrectly over/under budgeted in
time/money are strongly downgraded.– Watch out for equipment (computers are not equipment, they are IT within DoD)
So you won, now what?• Be diligent during contract negotiation
– Answer requests from OSP or your program manager promptly and accurately (the most dangerous word in the English language is “send”)
– Primary clarification questions are on budgets– Fill out ECORRW (export control) forms early
• Include the proposal and solicitation if at all possible• Contact me before submitting if you need to check the database for
potential controls – don’t make up answers or allow the export control office to interpret for you.
• Expect that any restrictions in the solicitation will and can apply to your work (CDAs too)
• The government can change the award instrument– E.g., Grant Awards cannot contain physical deliverables
Post-Award• Get an account. If there are lengthy negotiations,
request a hardship account (Dr. Chatti).– Most 6.1 DoD money authorizes 90 days pre-award
expenditure within certain budget limitations– Understand your post-award accounting procedures
• Is the DoD expecting montly invoicing (MSU default is quarterly)?
• Are you allowed to change the labor mix under the rules of your award?
• What is your sponsor’s policy on no-cost extensions?• Are you incrementally funded or milestone based?
• Execution, execution, execution.– DoD funding rewards those that follow the contract plan– There have been movements to severely limit NCEs
Budget Execution
DFAS RegionFinance Center US Treasury
DFASDisbursing /Finance Office
ACOAdministrativeContractOfficer
Contractor
PCOProcuringContractOfficer
PMOProgramManagementOffice
Congress
OMB
OSD Comptroller
MAJCOM/PEOComptroller
Service Comptroller
Commitment
C-ColorY-YearA-Amount
Budget Execution
DFAS RegionFinance Center US Treasury
DFASDisbursing /Finance Office
ACOAdministrativeContractOfficer
Contractor
PCOProcuringContractOfficer
PMOProgramManagementOffice
Congress
OMB
OSD Comptroller
MAJCOM/PEOComptroller
Service Comptroller
Obligation
Budget Execution
DFAS RegionFinance Center US Treasury
DFASDisbursing /Finance Office
ACOAdministrativeContractOfficer
Contractor
PCOProcuringContractOfficer
PMOProgramManagementOffice
Congress
OMB
OSD Comptroller
MAJCOM/PEOComptroller
Service Comptroller Invoice
Invoice
• Starts work• Incurs cost
Budget Execution
DFAS RegionFinance Center US Treasury
DFASDisbursing /Finance Office
ACOAdministrativeContractOfficer
Contractor
PCOProcuringContractOfficer
PMOProgramManagementOffice
Congress
OMB
OSD Comptroller
MAJCOM/PEOComptroller
Service Comptroller
Expenditure
Check
Budget Execution
DFAS RegionFinance Center US Treasury
DFASDisbursing /Finance Office
ACOAdministrativeContractOfficer
Contractor
PCOProcuringContractOfficer
PMOProgramManagementOffice
Congress
OMB
OSD Comptroller
MAJCOM/PEOComptroller
Service Comptroller
ExpenditureReportingSystem
Budget Execution
DFAS RegionFinance Center US Treasury
DFASDisbursing /Finance Office
ACOAdministrativeContractOfficer
Contractor
PCOProcuringContractOfficer
PMOProgramManagementOffice
Congress
OMB
OSD Comptroller
MAJCOM/PEOComptroller
Service Comptroller
Outlay
Cash
Summary• Understand the DoD opportunities in your technical
area (agencies, timing, color of money)• Write clean proposals
– Technical responsiveness– Cost and schedule– SOW development (especially for contracts)
• Understand any restrictions that can be expected for this research– Do not assume they will go away in negotiation
• Vigorously manage your post award execution– The DoD does reward good behavior in this area– Tell your program manager about know execution
problems before they become acute