Pre-award Contract Management

VI. Institutional Supporting Research and Development Program


A. UC Discovery Grant Funding (See also April 2009 Presentation)


The UC Discovery Grant Program is a UC funded matching grant program to UC campuses and laboratories ( Under the program, UC funds 50% of the project direct costs with the partner funding the other 50%. Per UC rules, the partner’s funds bear overhead while UC funds do not. At LBNL, we execute a CRADA with the partner to formalize the collaboration.


Previously, LBNL has had only a handful (5) of these grants since 1997 because LBNL has required the partner to pay the overhead on both its funds and UC’s. This has put us at a disadvantage since partners could get a better deal with the campus. Under Contract 31, Clause H27, the Lab can conduct Institutional Supporting Research and Development (ISR&D), under the same costing rules as the UCDRD program (the only overheads applied are organization burdens).


The following is the guidance to treat UC Discovery Grant Program funding under Clause H27. A summary process follows:


  • Award Type: LBNL may apply for these grants (OSPIP and Division). If successful, the UC funding will be treated as (ISR&D money. It will be put into RAPID as a G4 UC Discovery Program proposal/award. It would not be SPP (formerly WFO), nor get moded into the DOE Financial Plan (just like (ISR&D).
  • Indirect Cost Treatment: The UC Discovery Program does not pay for any indirect costs. Therefore, organizational burdens would have to be transferred to the partner (this would be handled by the Div) because no indirect types burdens are allowable. The partner funds covering Organizational Burden will not be matched by the UC Discovery Program. The Procurement and travel burdens are Service Center recharges and are considered directs payable in accordance to the Budget Office disclosure to DOE.
  • Contract: A CRADA would be executed and the partner’s share would be 50% of direct costs, all burdens, and, in addition, the burdens that UC could not pay (see 2 above). While this would cost the sponsor some additional costs, it is significantly less than applying full Lab Indirect Cost-type Burdens.
  • Accounting Information: The UC Discovery payments will be placed in the LBNL STIP account and treated in the same way at ISR&D/Gifts. There would be no 5% gift assessment fee since this assessment fee was to protect UC for over costing on 3rd party donations for Gifts.


LBNL is proposing a partnership that UC has agreed to co-fund with its funding. We are not performing WFO for UC but rather leveraging funds from the partner with UC funds, consistent with the intent of Clause H27. OSPIP has met with the DOE/BSO Contract Officer and he agrees we can treat this Discovery Grant money under Clause H27. OSPIP will report on this as part of its reporting under the H27 implementation plan.