SIGNIFICANT DEVELOPMENTS

Activities in the Office of Sponsored Programs during 1995-1996 were impacted in two distinct arenas: externally by ongoing policy issues related to federal funding of research and internally by a major new emphasis on computerization and automation within the office. Each of these is described below:

FEDERAL INITIATIVES

Indirect Cost Issues

In February, 1995 another set of proposed revisions to OMB Circular A-21, the Federal cost principles applicable to universities, were issued. Adopted in May, 1996 these revisions will further constrain the ability of institutions to fully recover the costs of performing research for the federal government.

One of the significant changes adopted in May is the requirement to "fix" the indirect cost rate for the life of an award or competing segment thereof. This poses not only additional strain on resources to accommodate multiple indirect cost rates but also will require significant communication with both Institute researchers and federal agencies to implement this change fairly and equitably.

As discussed last year, a troublesome issue still exists related to departmental administration expenses. Despite the fact that the Office of Management and Budget issued a formal interpretation of the section of A-21 which had restricted direct charging administrative and clerical expenses to federal research awards, some federal agencies have restricted or eliminated secretarial and administrative support from federal awards. This issue is continuing to be addressed by OSP and by Washington-based organizations such as the Council on Governmental Relations.

Research Assistant Compensation

As noted in last year's report, OMB has reached the decision that MIT and three other major research universities will not be permitted to continue charging the tuition of graduate student research assistants to the employee benefit pool but will be required to treat it as a direct cost to the individual research projects on which they are employed. The implementing regulation, which appear in OMB Circular A-21, provide a transition period which will result in MIT's treating tuition as a direct charge for these appointments beginning in FY 99. The problem is compounded now for NIH awards because that agency is now restricting graduate student compensation (defined as salary plus employee benefits plus tuition charges) to a "reasonable" level and, furthermore, will limit funding from NIH for these costs to $23,000.

Conflict of Interest

Over the past year, MIT has developed policy and procedures to implement the disclosure and review requirements of the National Science Foundation and the Public Health Service with regard to possible investigator conflict of interest on research projects. NSF and NIH implemented their policies October 1, 1995. Annual updates of disclosures for currently funded awards and pending proposals are now required from all principal investigators.

The Lobbying Disclosure Act of 1995

This Act was signed into law in December 1995 and, as a result, MIT (along with many other institutions of higher education) registered as required by the act. Certain named individuals who spend significant time in an advocacy role at the federal level are now required to report their activities and associated costs biannually. Others (including deans, directors, and faculty) are required to report internally similar activities for consolidated reporting.

INTERNAL INITIATIVES

Streamlining of research administration processes

Significant effort has been devoted toward streamlining some internal processes related to the management of research awards at the Institute which have provided relief to schools, labs, and departments, as well as to central administrative offices. We have provided additional flexibilities to principal investigators in the use of federal research grant funds by relaxing many of the internal approvals previously required and have streamlined the Research Proposal Summary form, to reduce the items on the form and make the remaining items more useful. In addition, MIT has been accepted into Phase III of the Federal Demonstration Partnership, which will provide even greater flexibilities to researchers and will provide avenues to utilize electronic initiatives underway by the federal government.

Automation and computerization

The major internal effort of the office this year has been the implementation of an OSP database to capture award and proposal information in a computerized database. This will permit more effective and efficient management of awards by OSP staff, will permit Institute personnel to access the database, and will provide the capability to produce standard and custom reports quickly and independently. The database is fully loaded and OSP is currently deploying the system to interested departments, laboratories, and centers.

Last year, MIT committed to participating in two federal initiatives to develop and submit the administrative portion of selected research proposals to NSF, ONR, NIH, DOE, AFOSR, ARO, and ARMAA electronically. Initial development has proceeded and proof of concept proposals were submitted this past year. MIT also completed a discovery project which has led to approval for full development of an electronic proposal creation, processing, and submission process. This project is expected to be completed by January 1998 and will result in any researcher at MIT using the technology already available in the researcher's office or laboratory being able to electronically create and submit proposals to federal agencies.

IN MEMORIAM

We note with sadness the death of one of our contract administrators, Ms. Marie Cedrone, who died of cancer in June, 1996.

Julie Norris

MIT Reports to the President 1995-96