Title:  Principles Related to the Use and Operation of National Science
        Foundation-Supported Research Instrumentation and Facilities --
        Important Notice Number 122
Date:   June 16, 1998

NATIONAL SCIENCE FOUNDATION
Office of the Director
Arlington, VA  22230

June 16, 1998

Notice No. 122
(Replaces in91)

IMPORTANT NOTICE TO PRESIDENTS OF UNIVERSITIES AND COLLEGES AND HEADS OF OTHER
NATIONAL SCIENCE FOUNDATION GRANTEE ORGANIZATIONS

Subject:  Principles Related to the Use and Operation of National Science
          Foundation-Supported Research Instrumentation and Facilities

At its 346th meeting on November 13, 1997, the National Science Board amended
the "Principles Related to NSF-Supported Research Instrumentation and
Facilities," which it had approved in 1983, to make them consistent with
government-wide policy.  Specifically, the last sentence of the Principles was
amended to incorporate a reference to Office of Management and Budget Circular
A-110, Uniform Administrative Requirements for Grants and Agreements with
Institutions of Higher Education, Hospitals, and Other Non-Profit
Organizations, as revised in November 1993.  Sections  __.34(b) and  __.35(b)
of A-110 respectively bar use of equipment and supplies "acquired with Federal
funds to provide services to non-Federal outside organizations for a fee that
is less than private companies charge for equivalent services, unless
specifically authorized by Federal statute, for as long as the Federal
government retains an interest in the equipment."  The revised Principles now
state:

        The National Science Foundation seeks the maximum productive use of the
        Nation's scientific instrumentation and research expertise.  Ensuring
        that the highest quality instrumentation, facilities, and services are
        available to scientific users, both academic and industrial, is a key
        requirement, as are harmonious relations and cooperation between
        industry and universities. Private research and testing laboratories,
        as well as university, government, and industrial laboratories, have a
        contribution to make.

        The National Science Board recognizes that there may be circumstances
        where NSF grantees use NSF-supported research instrumentation to
        provide services in commerce for a fee, to an extent that such
        practice, (1) detracts from the performance of their obligation under
        the grant, and/or (2) may have a material and deleterious effect on the
        success of private companies engaged in the provision of equivalent
        services.  It is contrary to the NSF's intent for grantees to use
        NSF-supported research instrumentation or facilities to provide
        services for a fee in competition with private companies in a manner
        that is prohibited by OMB Circular A-110.

NSF has already implemented this policy through its Grant General Conditions
(GC-1), the Federal Demonstration Partnership General Conditions and
appropriate award language in agreements with its Federally funded Research and
Development Centers (FFRDCs).

The Grant Policy Manual (GPM) 544 is revised to read:

544 Principles Relating to the Use of NSF-supported Research Instrumentation
and Facilities

        The following principles on use of NSF-supported instrumentation and
        facilities were adopted by the National Science Board:

        [Text of Principles:  See above.]

        Grantees should implement those principles and related grant conditions
        in a reasonable manner.  Grantees are expected to provide fair and
        adequate consideration of any complaints about use of instrumentation
        and facilities.

        (GPM Exhibit V-1 is to be deleted.)

NSF encourages organizations with concerns about specific institutional
practices to contact the grantee institution before contacting NSF.  If an
organization still feels that OMB Circular A-110, as implemented in NSF award
conditions, is not being followed, information detailing the concerns should be
sent to Donald Senich, Senior Advisor, Office of Small Business Research and
Development/Office of Small and Disadvantaged Business Utilization, National
Science Foundation, Room 527, 4201 Wilson Boulevard, Arlington, VA  22230.

Neal Lane
Director


Replaces Important Notice 91, dated March 11, 1983
Expires:  Upon revision of Grant Policy Manual