The Federal Demonstration Project; Phase III Solicitation

AGENCIES:  National Science Foundation, National Institutes of
Health, Office of Naval Research, Department of Energy, Department
of Agriculture, Air Force Office of Scientific Research, Army Research
Office, Army Medical Research & Material Command, National
Aeronautics & Space Administration, Environmental Protection

ACTION:  Notice

This Notice announces a solicitation to participate in Phase III of the
Federal Demonstration Project (FDP), to test innovative approaches to
streamline processes and systems for Federally supported research and
education.  FDP Phase III constitutes the continuation of the Florida
Demonstration Project Phase I which ran from 1986 through
1988, and the Federal Demonstration  Project Phase II which began in
September 1988 and will conclude in June, 1996.

DATES:  Proposals must be received by C.O.B. on March 20, 1996
(see section entitled "Proposal Submission and Deadline").  Evaluation
and selection of organizations will be completed about May 1, 1996.
Project organization and execution of Phase III agreements will be
completed about June 15, 1996.

Ann Datko, U.S. Department of Agriculture, 202-401-4921,;
Geoffrey Grant, NIH, 301-435-0538,;
Harry Haraldsen, Air Force Office of Scientific Research, 202-767-
Robert Hardy, NSF, 703-292-8240,;
Richard Kall, NASA 202-358-0459,;
Charles Paoletti, ONR, 703-696-4606,;
Dan Shackelford, U.S. Army Medical Research and Materiel
Command, 301-619-7216,;
John Showman, EPA, 202-260-6580,;
Larry Travis, Army Research Office, 919-549-4310,;
Jean Morrow, DOE, 301-903-2452,



In April, 1986 NSF, NIH, ONR, DOE and USDA joined with the
Florida State University System and the University of Miami in a
demonstration of a standard and simplified research support
instrument.  This Florida Demonstration Project was developed by
federal officials with the encouragement of the  Government-
University-Industry Research Roundtable (GUIRR) of the National
Academy of Sciences.  This demonstration tested the use of a number
of expanded authorities for grants administration by research
performing organizations.  Demonstrations focused on such things as
eliminating most requirements for federal prior approval of certain
expenditures so long as pertinent grantee administrative systems were
adequate and effective and allowing grantees the authority to:  a)
incur pre-award costs up to 90 days before the effective date of a grant,
b) extend the period of the grant for up to one year with no additional
funds, and  c) carry forward balances from one budget period to the
next. Based on the results of Phase I,  OMB authorized expansion of
the Demonstration in May, 1988.

FDP Phase II began in September, 1988 with 21 educational
institutions or consortia and 10 federal agencies.  Initially, seven task
groups comprised of representatives from participating institutions and
federal agencies were formed and charged with developing
models for administrative reform in a variety of areas.  A uniform set
of policies and procedures for administration of research grants, a
simplified continuation application process and elimination of
equipment screening were some of FDP Phase II successes.
In addition, during Phase II FDP responded to an OMB request to
prepare a report on the possibility and practicality of direct charging
facility costs to grants.    FDP Phase II was recognized in the National
Performance Review as the model for testing more efficient ways for
federal agencies to interact with grantee institutions.

Purpose and Scope

The purpose of this solicitation is to provide a mechanism to expand
the scope of and broaden the participation in the current Federal
Demonstration Project.  The primary focus of this new phase of the
FDP will be to serve as the central test bed for demonstrations of
reengineered processes and systems for federal support of research
and education. Emphasis will be placed on electronic research
administration and demonstrations that  provide administrative relief
for faculty researchers.  Primary goals continue to be increased
productivity, increased stewardship, and decreased administrative

Organization of Phase III and Phase III Activities

The primary forum within the FDP Phase III for interaction among all
the participants will continue to be the Committee of the Whole.  Each
non-federal member institution or organization will designate a
minimum of two representatives (one administrator and one
investigator) to the Committee of the Whole.  Similarly, each federal
agency participating in the FDP Phase III will designate two
representatives (policy/administrative/business and program manager).
Additional institutional/agency representatives may attend and
participate in meetings as observers, as may representatives from
affiliate membership groups.  The Committee of the Whole will
meet at least once a year.

In addition to the Committee of the Whole, a Steering Committee will
meet at least three times a year.  The Steering Committee will receive
and approve recommendations for new demonstrations, progress and
evaluation reports on demonstrations and pilots, and approve the
conveying of recommendations to the Office of Science and
Technology Policy.  The Steering Committee will also be responsible
for establishing task forces and assigning their membership,
developing position papers, reviewing and approving additional
affiliate membership requests and membership terminations, and
undertaking  other  activities consistent with FDP objectives.  All
member federal agencies will be represented on the Steering
Committee.  Depending on the number of non-federal members,
participation may include one representative from each institution or
a representative group of institutional representatives whose
membership would rotate, offering each institution membership on the
Steering Committee for a set  period.

An Executive Committee, consisting of two institutional Steering
Committee members, two federal agency representatives, a GUIRR
representative, and a senior federal science official will meet on an as
needed basis and will be empowered to take necessary actions
on behalf of the Committee of the Whole and/or Steering Committee.
It will also develop meeting agendas, monitor task force progress,
identify opportunities for new  demonstrations, and act as liaison for
the FDP with other groups and individuals.  The Steering Committee
will appoint members to the Executive Committee annually except
for the senior federal science official who will be selected from, and
named by, The Research Roundtable Council and will have an
indefinite term of service.

The GUIRR of the National Academy complex will continue to
function as a neutral convenor for the FDP, and will provide the
executive secretariat.  It will continue to facilitate meetings and
discussions of the Committee of the Whole and Steering
Committee, and the contributions of the FDP to federal policy-making.

The federal agency working group will continue to be comprised of
representatives of the federal agency Steering Committee members.
The group will convene periodically to form a consensus about
proposed demonstrations and pilots they are willing to test,
as well as new or revised FDP terms and conditions.

The Office of Science and Technology Policy (OSTP) will be the focal
point within the federal government to receive, review and implement
as appropriate recommendations emanating from FDP activities.


This solicitation is open to all institutions and organizations other than
state and local governments that undertake research or educational
activities supported with federal funds through a grant or cooperative
agreement mechanism, provided such organizations have received at
least $1,000,000 of such federal support over the past two years.
Existing FDP member institutions and organizations who have
maintained active participation in the current Phase II of the FDP will
be admitted to Phase III upon execution of a memorandum of
agreement (see below) by an appropriate senior official of the
organization.  Consortia of federal research or education performing
institutions or organizations are not eligible to participate in Phase III
of the FDP, with the exception of central system offices of  statewide
university systems and non-profit foundations that serve as legal
agents for otherwise eligible institutions (e.g. university research
foundations).  In such cases participation of individual member
institutions in the FDP is strongly encouraged.  Existing member
institutions of FDP Phase II consortia  will be admitted to Phase III
upon execution of the memorandum of agreement.

The selection of organizations for Phase III of the FDP is intended to
be broadly representative of the federal research and education
performing community, including large and small public and private
colleges and universities (including predominantly undergraduate
institutions and HBCUs), non-profit research and education
organizations (including science museums), hospitals, and profit-
making  organizations.  Every effort will be made to ensure broad
representation by type, size, extent of federal support, geographic
location and other characteristics.  However, no commitment is made
to select either a minimum number of organizations or to ensure
representation by organization type or other  characteristics.

Expressions of interest in affiliate membership status by groups such
as professional associations of researchers, educators or research and
education administrators, scientific societies, and other such groups
are encouraged.  While such groups are not eligible for full FDP
membership, their representatives may attend FDP meetings as
observers and otherwise participate as appropriate in FDP
activities.  Affiliate membership status for smaller institutions or
organizations unable to commit to the conditions for full FDP
participation (see below) also will be considered.

Participation Conditions

As a condition for participation in Phase III, the selected organizations
will be required to agree to the following conditions:
1.  Establishment and maintenance of management and administrative
procedures and systems that comply with the standards and
requirements of the federal government for administering federal
awards for research and education (including lack of material
weaknesses in internal control structures as confirmed by applicable
audit requirements and substantial compliance with federal policies
and  regulations pertaining to grant administration, such as timely
technical, invention and financial reporting).
2.  Agreement to actively participate in the FDP, including regular
attendance, at institutional expense, of FDP committee and task force
meetings, and participation in new or ongoing FDP demonstrations
and pilots.  Failure to attend two or more consecutive regularly-
scheduled FDP committee meetings will be grounds for
termination of membership.
3.  Commitment to continued efforts to reengineer and streamline
internal processes while enhancing the stewardship of federal support
and to provide a report to the FDP membership at least every two years
on these efforts.
4.  Execution of a memorandum of agreement confirming the above,
and setting forth certain additional understandings and requirements
(copy of draft agreement will be furnished on request and may also be
accessed electronically via the NSF Home Page on the World-Wide

Federal agencies currently participating in the FDP have agreed that
agency grants and cooperative agreements to FDP member institutions
and organizations (excluding affiliate members) will be governed by
the "FDP Terms and Conditions" (unless otherwise required).  During
Phase III they are expected to use the FDP as the primary focus for
tests and demonstrations of reengineered processes  and systems for
the support of research and education.  Additional federal agencies
may be admitted to the FDP upon agreement to these conditions.

What To Submit

Proposing organizations must submit ten (10) copies of a brief
proposal (not to exceed 5 pages).  The proposal must be signed by a
senior official authorized to commit the organization in such matters
(in the case of educational institutions Provost level or higher).  It
must cover the following:
1.  Description of existing and planned efforts by the proposing
institution/organization to reengineer and improve the effectiveness of
systems for administration of federal support.
2.  Description of possible Phase III demonstration and pilot projects
including significance of the administrative problem or burden to be
addressed, suggested methods/approaches, ways to assess the impact
on productivity, and expected benefits.
3.  Identification of primary institutional/organizational
representatives including their background and qualifications.  One of
the outcomes of Phase II is a recognition of the need for greater
participation in FDP activities by principal investigators and project
directors of Federally supported research and education activities.
Therefore proposing organizations should identify both  administrative
and principal investigator/project director representatives and indicate
their commitment to participate in FDP activities.
(It is expected that each FDP Phase III member organization will
designate two representatives).
4.  Indication of the proposing organization's top management
commitment to reengineer administrative processes and systems, and
willingness and commitment to fully participate in FDP activities.
This section also should include a brief summary of the organization's
characteristics:  type of  institution/organization, size, Federal
R&D/education funding for fiscal years 94 and 95, by year and
funding agency, etc.

Selection Criteria

1.  Evaluation and assessment of existing reengineering activities of
the organization in the area of administrative processes and systems
and organizational commitment to same.
2.  Significance of proposed demonstrations and pilot projects and the
extent to which suggested methods and approaches clearly show
potential to achieve the results sought.
3.  Commitment of individuals proposed as lead organizational
representatives and their experience and leadership in improving
administration of federal support.
4.  Evidence of organizational and top management commitment to
full participation in  Phase III.

In addition to the above, equally weighted criteria, consideration will
be given to achieving an appropriate representation of organizations,
including organization type, size, extent of federal support, geographic
location, etc.

Evaluation of Proposals and Selection Process

Evaluation of proposals will be carried out by the Standing FDP
Committee on Membership, which is comprised of federal agency
officials, representatives of current FDP member institutions, and
GUIRR representatives.  The Membership Committee
will make the final selection in consultation with the Executive
Committee of the FDP.

Proposal Submission and Deadlines

Ten copies of the organization's proposal must be received by C.O.B.
March 20, 1996 at the Government--University--Industry Research
Roundtable, National Academy of Sciences, National Academy of
Engineering, Institute of Medicine, 2101 Constitution
Avenue NW, Washington, D.C. 20410.  Attention:  FDP

Selection and Schedule

Evaluation and selection of organizations will be completed about May
1, 1996.   Project organization and execution of Phase III agreements
will be completed about June 15, 1996.