vision which requires institutions of higher education to deny payment of funds otherwise due under NASA programs to certain individuals who disrupt the educational activities of said institutions if the institutions make certain determinations after notice and opportunity for a hearing. This disruptive activity may involve either a violation of law, or a breach of the legitimate regulations of the institution concerned. In either case, the individuals charged with disruptive activities are to be afforded notice and an opportunity for a hearing upon the issues, before a determination to deny payments may be made by the institution concerned. Any such determination to deny funds to an individual is effective for a period of 2 years, and applies to other educational institutions which employ or which are attended by such individuals during this period.

(b) In order to implement this provision, the following clause shall be included in all grants or extensions and supplements thereto with an institution of higher education using funds subject to the National Aeronautics and Space Administration Authorization Act, 1970 (Pub. L. 91-119), 83 Stat. 196, approved November 18, 1969, and any other subsequent act of Congress, providing for the denial of funds resulting from disruption of activities of educational institutions.

DENIAL OF CERTAIN PAYMENTS

(a) If an institution of higher education determines, after affording notice and opportunity for hearing to an individual attending, or employed by, such institution, that such individual has been convicted by any court of record of any crime which was committed after November 18, 1969, and which involved the use of (or assistance to others in the use of) force, disruption, or the seizure of property under control of any institution of higher education to prevent officials or students in such institution from engaging in their duties or pursuing their studies, and that such crime was of a serious nature and contributed to a substantial disruption of the administration of the institution with respect to which such crime was committed, then the institution which such individual attends, or is employed by, shall deny for a period of 2 years any further payment to, or for the direct benefit of, such individual under any of the programs authorized by the National Aeronautics and

Space Act of 1958. If an institution denies an individual assistance under the authority of this clause, then any institution which such individual subsequently attends shall deny for the remainder of the 2-year period any further payment to, or for the direct benefit of, such individual under any of the programs authorized by the National Aeronautics and Space Act of 1958.

(b) If an institution of higher education determines, after affording notice and opportunity for hearing to an individual attending, or employed by, such institution, that such individual has willfully refused to obey a lawful regulation or order of such institution after November 18, 1969, and that such refusal was of a serious nature and contributed to a substantial disruption of the administration of such institution, then such institution shall deny, for a period of 2 years, any further payment to, or for the direct benefit of, such individual under any of the programs authorized by the National Aeronautics and Space Act of 1958.

(c) Nothing in this clause shall be construed to prohibit any institution of higher education from refusing to award, continue, or extend any financial assistance to any individual because of any misconduct which in its judgment bears adversely on his fitness for such assistance.

(d) Nothing in this clause shall be construed as limiting or prejudicing the rights and prerogatives of any institution of higher education to institute and carry out an independent, disciplinary proceeding pursuant to existing authority, practice, and law.

(e) Nothing in this clause shall be construed to limit the freedom of any student to verbal expression of individual views or opinions.

Subpart C-Award of Research Grants

§ 1260.301 Instrument.

(a) The grant instrument shall be brief in format, containing only those provisions necessary to protect the fundamental interests of the Government, including provision for acquisition by the Government of title to and rights in inventions arising out of the research, and for revocation of the grant, if necessary, after consultation between the grantee institution and NASA.

(b) The grant instrument shall provide for audit of grants by NASA or its representatives at all reasonable times during the life of the grant and for 3 years thereafter. In this connection,

the NASA audit program for grants shall involve sample audits on a selective basis. The Government's audit of NASA grants shall generally be for the purpose of appraising and evaluating the grantee's performance from a business management standpoint and not for the purpose of adjustment of grant amounts.

§ 1260.302 Grant format.

NASA Forms 1463, Research Grant and 1463A, Provisions for Research Grants shall be used for the award of all NASA research grants.

§ 1260.303 Determination of amount.

(a) Regulations governing contracts generally are not appropriate for application to grants. However, in general, Exhibit B of this part is the basic guidance document in determining the allowability of costs chargeable to research supported by NASA under grants. (Subpart 18-15.3 of 41 CFR Part 18-15 applies to educational institutions, and Subpart 18-15.2 of 41 CFR Part 18-15 to non-profit organizations other than educational institution.)

(b) In no case shall an overhead rate used for determining grant amounts exceed, in equivalence, the most recent overhead rate at the grantee institution for comparable research contracts of the Government.

(c) Grant amounts determined at the time of the award shall not be reduced other than in case of revocation or in the event grant funds are not committed by the grantee prior to completion of the research involved.

(d) It is the responsibility of the grantee to manage the granted funds in such a manner that they cover the full period of the grant. NASA is not obligated to reimburse over-expenditures. However, this stricture does not preclude acceptance of a proposal requesting supplemental funding to extend the research.

§ 1260.304 Cost sharing.

NASA's Appropriation Acts for several years have included provisions requiring cost sharing by the grantee under research grants resulting from unsolicited proposals. Office of Management and Budget, Circular A-100,

dated December 18, 1970, also sets forth circumstances under which cost sharing should be encouraged in certain grants even when not required by statute. In accordance with the foregoing, and pursuant to the general NASA policy set forth in NMI 8310.2, "Cost Sharing on Research Grants and Contracts," dated October 20, 1971, the following basic guidelines will be implemented in the negotiation of all research grants and in supplements to such grants which require additional funding.

(a) When cost sharing is applicable. (1) Cost sharing by non-Federal organizations is mandatory in any grant for basic research which results from an unsolicited proposal.

(2) Cost sharing by non-Federal organizations shall be encouraged in any grant for basic research which does not result from an unsolicited proposal but in which the parties nevertheless have considerable mutual interest in the research (e.g., when it is probable that the performing organization or institution will receive significant future benefits from the research, such as: Increased technical knowledge useful in future operations; additional technical or scientific expertise or training for its personnel; and the opportunity to benefit through patent rights).

(3) Cost sharing by non-Federal organizations which is not otherwise appropriate under paragraph (a)(1) or (2) of this section may nevertheless be accepted when voluntarily offered by a performing organization.

(b) When cost sharing is not applicable. Except when cost sharing is mandatory pursuant to paragraph (a)(1) of this section, it is not applicable to grants to which the Grants Officer has determined that:

(1) The research effort has only minor relevance to the non-Federal activities of the performing organization, which is proposing to undertake the research primarily as a service to the Government;

(2) The performing organization has little or no non-Federal sources of funds from which to make a cost contribution;

(3) The performing organization is predominantly engaged in research

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and development and has little or no production or other service activities, and is therefore not in a favorable position to make a cost contribution; or

(4) Payment of the full cost of the project is necessary in order to obtain the services of the particular organization.

(c) Amount of cost sharing—(1) Educational institutions and affiliated not for profit institutions. Cost sharing for such institutions normally may vary from 1 percent to as much as 5 percent of the costs of the project. However, amounts greater than 5 percent may be accepted when voluntarily offered by the institution.

(2) Other performing organizations. Cost sharing for other organizations may vary from less than 1 percent to 50 percent or more of the costs of the research.

(i)

(3) Additional considerations. The amount of cost sharing which is appropriate in a given instance is independent of whether cost sharing is mandatory or merely encouraged.

(ii) Mutuality of interest in the results of the work being performed should be a primary significance in assessing the appropriateness of any particular level of cost sharing within the foregoing ranges.

(d) Implementation. The following policies and procedures are established to implement the basic guidelines set forth above:

(1) Determining mutuality of interest. Factors which may be considered in determining mutuality of interest include:

(i) The potential of the grantee to recover its contribution from non-Federal sources;

(ii) The extent to which a particular area of research requires special stimulus in the national interest; and

(iii) The extent to which the research effort or result is likely to enhance the grantee's capability or expertise.

(2) Method of cost sharing. Cost sharing shall be accomplished by a contribution of part or all of one or more elements of allowable cost of the work being performed, and normally shall be expressed as a stated minimum percentage of the total allowable costs of the project. Costs so contrib

uted may not be charged to the Government under any other grant or contract (including allocation to other grants or contracts as part of an independent research and development program).

(3) Institutional cost sharing agreements-(i) Description. An institutional cost sharing agreement covers the aggregate of all or some of the research projects (both grants and contracts) supported by NASA at a given performing organization. Eligibility for institutional cost sharing agreements is limited to nonprofit institutions of higher education and nonprofit organizations whose primary purpose is the conduct of scientific research. During the term of such agreements, relatively high contributions by the performing organization on some NASA projects may be offset by relatively low contributions on other NASA projects, provided that:

(a) The agreed aggregate contribution is made, and

(b) A contribution, even if nominal, is made to each of the grants and contracts to which the agreement applies.

(ii) Applicability. An institutional cost sharing agreement is entered into only when warranted by a large anticipated volume (normally in excess of $250,000 annually) of contracts and/or grants which will be negotiated with the performing organization during the term of the agreement and will be subject to cost sharing.

(iii) Negotiating authority. The Procurement Office, NASA Headquarters (Code KDO-1) is responsible for the negotiation of all institutional cost sharing agreements. Such agreements, when negotiated, shall be used by all procurement offices.

(iv) Determination of amount. The amount of cost sharing negotiated under an institutional cost sharing agreement will be determined in accordance with paragraph (d)(3)(iii) of this section, and should reflect the anticipated mutuality of interest of the parties during the term of the agreement. The average amount of cost sharing under previous grants and contracts with the performing organization may be used as a guide for this purpose to the extent that it is consistent with paragraph (d)(3)(iii) of this

poration organized and existing under the laws of the State of hereinafter

called the "Performing Organization."

1. The Performing Organization may, from time to time during the term of this Agreement, perform research under certain NASA grants and contracts (hereinafter referred to as "subject research agreements") pursuant to which the Performing Organization agrees to share the cost of the research in the manner provided in this Agreement.

2. In each year ending

during the term of this Agreement, the Performing Organization shall participate in the cost of subject research agreements by contributing, from non-Federal sources, a minimum of percent of the aggregate direct and indirect costs which are otherwise allowable in accordance with the cost principles applicable to the subject research agreements. A nominal portion, at least, of the allowable costs of each individual subject research agreement shall be included in the aforementioned aggregate contribution.

3. The Performing Organization shall maintain records of all costs contributed pursuant to this Agreement, as well as costs to be paid by the Government. Such records shall be subject to audit by the Government. Costs contributed by the Performing Organization shall not be charged to the Government under any other grant or contract (including allocation to other grants or contracts as part of an independent research and development program).

4. This Agreement may be amended only by mutual agreement of the parties, and may be terminated in its entirety by either party upon thirty (30) days written notice to the other party. Amendment or termination of this Agreement shall not affect any subject research agreement theretofore entered into between the parties.

(4) Grant clauses. The appropriate clause set forth in this paragraph (d)(4) shall be inserted in each grant in which costs are shared by the grantee pursuant to the policies prescribed in this § 1260.304.

(i) In grants for which cost sharing has been individually negotiated, the following clause shall be used. (The clause may be modified to fit specific circumstances):

COST SHARING (MARCH 1972)

The Grantee agrees to share in the cost of the research by charging to the Government not more than -- percent of the costs of performance determined to be allowable in accordance with Exhibit B of the NASA Grant Handbook. The remaining percent, or more, of the allowable costs of performance so determined will constitute the Grantee's share and will not be charged to the Government under this grant or under any other grant or contract (including allocation to other grants or contracts as part of an independent research and development program). The Grantee will maintain records of all grant costs claimed by the Grantee as constituting part of its share and such records shall be subject to audit by the Government.

(ii) In grants for which cost sharing will be in accordance with a previously negotiated institutional agreement, the following clause shall be used:

COST SHARING UNDER INSTITUTIONAL
AGREEMENT (MARCH 1972)

The Grantee agrees to share in the cost of the work hereunder in accordance with Institutional Cost Sharing Agreement No. -dated

(5) Documentation. Grant files shall contain appropriate documentation setting forth the nature of the mutual interest of the parties and supporting the amount of cost sharing agreed upon. When cost sharing has been waived pursuant to paragraph (b)(4) of this section, documentation shall include the reason for the grantee's refusal to share the cost of the work, and a justification as to why it is necessary for NASA to support the research project notwithstanding the grantee's refusal to share in the costs of the work.

§ 1260.305 Funding of grants. [Reserved]

§ 1260.306 Numbering of grants.

(a) Grants shall be numbered by using a letter prefix, following by a hyphen and a serial number.

(1) The letter prefix shall be as follows:

(i) Research grant.

(ii) Research grant, step funded..

(iii) Training grant (Headquarters use only).

NGR

NGL NGT

(iv) Facilities grant (Headquarters use only)...... NGF

(2) The basic serial number of a grant (exclusive of the letter prefix) shall be derived from the proposal control number assigned by the Office of University Affairs, NASA Headquarters (Code PY) and shall consist of eight digits as follows:

(i) A two-digit number representing the State (or foreign country), followed by a hyphen;

(ii) A three-digit number representing the grantee institution, followed by a hyphen; and

(iii) A three-digit number, unique to each grant at a particular institution.

(b) The proposal control number assigned by the Office of University Affairs, NASA Headquarters (Code PY) for new projects contains eight digits and is constructed as in paragraph (a)(2) of this section, except that the last three digits are unique to each proposal submitted by a particular institution. Control numbers for proposals to supplement existing grants con

tain 11 digits. The first eight correspond to the serial number of the grant, while the last three are unique to the particular supplementing proposal. The serial numbers prescribed in paragraph (a)(2) of this section shall be determined from proposal control numbers in the following

manner:

(1) New awards. The eight digit numerical portion of the proposal control number is used as the serial number for a new award. Example: Proposal Y-05-020-021 becomes grant NGR (or NGL) 05-020-021. When two or more proposals from the same institution are combined into a single new award, the lowest unique number is used as the serial number. Example: Proposals Y-05-020-037 and Y-05-020-051 are supported in a single grant whose number is NGR (or NGL) 05-020-037.

(2) Supplements to existing grants. A supplement to an existing grant bears the same basic serial number as the original grant, plus a consecutively assigned supplement number. Example: Proposal Y-05-020-001-076 is used to supplement grant NGR 05-020-001 (which has not heretofore been supplemented) and the resulting grant supplement is numbered NGR 05-020001, Supplement No. 1. (The last three digits of the proposal control number are ignored for serial purposes in this type of action.) Further supplements to this grant will then be numbered NGR 05-020-001, Supplement No. 2, NGR 05-020-001, Supplement No. 3, etc.

(3) New awards based on proposals to supplement existing grants. If a proposal is submitted to supplement an existing grant, but, instead, is considered by the Grants Officer to be more appropriate for a new award, the first five digits and last three digits of the 11-digit proposal control number are used as the serial number for the new award. Example: Proposal Y-05-020001-315, originally submitted to supplement grant NGR 05-020-001, becomes a new grant which is numbered NGR 05-020-315. (The same numbering procedure is followed when a proposal to supplement an existing contract is, instead, converted into a new grant.)