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<p><span style='font-family:"Arial","sans-serif"'>Please note that the cost
share has been reinstated on the following grants which affect Oklahoma: </span><span
style='font-family:"Arial","sans-serif"'>Experimental Program to Stimulate
Competitive Research (EPSCoR), Industry/University Cooperative Research
Centers, and Engineering Research Centers programs, Major Research
Instrumentation Program (MRI) and the Robert Noyce Teacher Scholarship Program.<o:p></o:p></span></p>
<div>
<p class=MsoNormal><i><span style='font-size:14.0pt;font-family:"Bookman Old Style","serif";
color:#17365D'>Gerry<o:p></o:p></span></i></p>
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<p class=MsoNormal><span style='font-family:"Arial","sans-serif";color:#1F497D'><o:p> </o:p></span></p>
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<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>
okgrantsmanship-bounces@lists.onenet.net
[mailto:okgrantsmanship-bounces@lists.onenet.net] <b>On Behalf Of </b>Mason,
Linda<br>
<b>Sent:</b> Monday, August 31, 2009 8:56 AM<br>
<b>To:</b> Oklahoma regional university administrators and faculty about
grantsmanship<br>
<b>Subject:</b> [Okgrantsmanship] NSF Policy on Cost Sharing - Ending Voluntary
Cost Sharing<o:p></o:p></span></p>
</div>
</div>
<p class=MsoNormal><o:p> </o:p></p>
<h1>INSIDE HIGHER EDUCATION <o:p></o:p></h1>
<h1>Leveling the NSF Playing Field <o:p></o:p></h1>
<p class=MsoNormal>August 31, 2009 <o:p></o:p></p>
<p>Colleges and universities contribute significantly to the cost of federally
sponsored research projects, through what they spend on research labs and
equipment, faculty start-up packages, and "indirect" costs that
aren't reimbursed by the government. <o:p></o:p></p>
<p>At various points, federal agencies have either required or encouraged them
to quite literally "share" the costs of research grants they win,
essentially putting up their own funds to match a portion of the grant's value.
The practice has been debated, though, with proponents arguing that it shows
institutions' commitment by forcing them to put their own "skin in the
game," but detractors saying that requiring or encouraging "cost
sharing" puts less-wealthy colleges and universities at a disadvantage
against wealthier peers, and can lead grant reviewers to favor proposals from
institutions that volunteer to contribute even though that isn't supposed to
factor into the decision making. <o:p></o:p></p>
<p>The 2007 American COMPETES Act asked the National Science Board to weigh the
pros and cons in reassessing the cost sharing policies of the National Science
Foundation, and the board <a
href="http://www.nsf.gov/pubs/2009/nsb0920/nsb0920_1.pdf" target="_blank">issued
a report</a> Friday that calls for ending the practice of "voluntary"
cost sharing in all circumstances, while continuing "mandatory"
contributions in a small number of industry-focused federal programs as recommended
by an <a
href="http://www.nsf.gov/nsb/publications/2008/rprt_congress_cs_policy.pdf"
target="_blank">interim report </a>the board issued last year.<o:p></o:p></p>
<p>"The board firmly believes that prohibiting voluntary committed cost
sharing, and permitting mandatory cost sharing requirements only in limited and
appropriate circumstances, will not reduce institutional commitment and
financial contributions to NSF-sponsored projects or negatively impact
institutional stewardship of Federal resources," Steven C. Beering,
president emeritus of Purdue University and chairman of the science board,
wrote in a memo accompanying the report. "Instead, it likely will enhance
the ability of institutions to strategically and flexibly plan, invest in, and
conduct research projects and programs, and will promote equity among grantee
institutions in NSF funding competitions."<o:p></o:p></p>
<p>The report, "Investing in the Future NSF Cost Sharing Policies for a
Robust Federal Research Enterprise," recounts the history of the science
foundation's policies on cost sharing, which has <a
href="http://www.nsf.gov/pubs/2009/nsb0920/nsb0920_4.pdf" target="_blank">shifted
repeatedly over 50 years</a>. In 2004, the science board eliminated mandatory cost
sharing requirements in all NSF programs, aligning the agency's practices with
those of other federal research agencies. The change did not address
"voluntary" cost sharing, which continued to be permitted under NSF
rules.<o:p></o:p></p>
<p>Eliminating required matching by institutions was designed to take an
institution's ability to contribute financially out of the peer review equation
and "remove eligibility barriers to participation in certain NSF programs
by institutions unable to provide the required cost sharing," among other
beneficial outcomes, the board writes in its new report.<o:p></o:p></p>
<p>But the 2004 change created some problems, too, most notably that it made it
more difficult for colleges and universities to "leverage" federal
money to attract corporate research support in NSF programs that are designed
to encourage academic-industry collaboration.<o:p></o:p></p>
<p>When the panel on cost sharing began its work in late 2007, as demanded by
the America COMPETES Act, which was designed to strengthen the country's
commitment to research and education in the physical and natural sciences, it
very quickly reached the conclusion that the NSF should alter its policies on
mandatory cost sharing. Its February 2008 report recommended that the agency
reinstate mandatory matching in three programs with strong corporate
involvement: the Experimental Program to Stimulate Competitive Research,
Industry/University Cooperative Research Centers, and Engineering Research
Centers programs (which NSF promptly did).<o:p></o:p></p>
<p>The report issued Friday, based on a broader review and soliciting of
opinions on the NSF's cost sharing policies, affirms that the NSF should
"allow, but narrowly circumscribe, the application of mandatory cost
sharing requirements in NSF programs in which cost sharing is foundational to
achieve programmatic goals," which at this point it defines as the
programs above plus two programs in which it was dictated by America COMPETES:
the Major Research Instrumentation Program and the Robert Noyce Teacher
Scholarship Program.<o:p></o:p></p>
<p>The panel dedicates much more discussion, though, to the thornier issue of
"voluntary" cost sharing -- which like many other financial issues
gets complicated because it becomes something other than fully
"voluntary," because those that don't pony up often come to be seen
(fairly or not) as weaker by those making decisions.<o:p></o:p></p>
<p>"The proposer community generally views offers of voluntary committed
cost sharing in proposals in increasing their competitiveness (i.e., likelihood
of receiving funding) in NSF funding competitions," the science board
writes. "Correspondingly, failing to offer significant voluntary committed
cost sharing in proposals is viewed as creating a competitive disadvantage.
These views are widespread and strong ... even though NSF instructs program
officers, reviewers, and the proposer community that voluntary committed cost
sharing is not to be a factor in the merit review and award decision
process."<o:p></o:p></p>
<p>The assessment that voluntary sharing creates inequity among research
institutions, combined with a desire to ease institutions' administrative
burdens for tracking voluntary cost sharing and to give colleges and
universities "maximum flexibility in expending their discretionary
resources on research activities," led the science board to recommend that
"NSF should prohibit voluntary committed cost sharing in all components of
both solicited and unsolicited proposals."<o:p></o:p></p>
<p>The science board report includes one further recommendation that could bode
well for colleges and universities down the road: a suggestion that the federal
government review whether to raise the cap (currently at 26 percent) on the
percentage of administrative costs for which universities can be reimbursed by
the government on research projects. Universities are alone among among
contractors that do federal research on which such a cap is imposed, the
Council on Governmental Relations <a
href="http://206.151.87.67/docs/OrszagLetterAdministrativeRelief.doc"
target="_blank">notes</a>.<o:p></o:p></p>
<p>"The board understands the fundamental intent of the administrative
rate reimbursement cap -- to ensure that the majority of research funding
supports direct research effort, rather than administrative costs -- but also
concurs with the general view of the research community that the current 26
percent reimbursement cap requires re-evaluation," the report states.<o:p></o:p></p>
<p class=MsoNormal>— <a href="mailto:doug.lederman@insidehighered.com">Doug
Lederman</a> <o:p></o:p></p>
<p class=MsoNormal><strong>© Copyright 2009 Inside Higher Ed</strong><o:p></o:p></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal><strong><span style='font-size:13.5pt;font-family:"Monotype Corsiva"'>Linda
Mason, Ed.D.</span></strong><o:p></o:p></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Coordinator
for Grant Writing and External Funding</span><o:p></o:p></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Oklahoma
State Regents for Higher Education</span><o:p></o:p></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>655
Research Parkway, Suite 200</span><o:p></o:p></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Oklahoma
City, OK 73104</span><o:p></o:p></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>405-225-9486</span><o:p></o:p></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'><a
href="mailto:lmason@osrhe.edu">lmason@osrhe.edu</a></span><o:p></o:p></p>
<p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>IP:
164.58.250.178</span><o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
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