Research Policy Handbook

Categories of Sponsored Projects (RPH 3.4)

Current version: May 2, 2011

Summary:

Illustrates the major categories of sponsored projects, i.e., organized research (including both sponsored research and University research), sponsored instruction, and other sponsored activities. Establishes procedures to meet the requirements of July 15, 1993 revisions to OMB Circular A-21 regarding the definition of University Research. Definition of Industry-Funded Clinical Trials clarified in October 2009.

1. GENERAL CATEGORIES OF SPONSORED PROJECTS

See RPH 3.2 for the definition of a sponsored project, and for distinguishing characteristics from gifts or student aid.

Sponsored projects at Stanford University are categorized under the following general headings:

1. Organized Research, including Sponsored Research and University Research
2. Sponsored Instruction
3. Other Sponsored Activities

Classification of a sponsored project into one of these categories affects the calculation of Stanford�s Facilities & Administrative (F&A;), i.e., indirect cost rates, and determines the appropriate rate to be charged. See Facilities & Administrative (Indirect Cost) and Fringe Benefit Rates: Definitions and Calculations, Research Policy Handbook 3.3.

Definitions and examples of these categories follow below.

1. ORGANIZED RESEARCH

   Research and scholarship activities include the rigorous inquiry, experiment or investigation to increase the scholarly understanding of the involved discipline. Organized research activities are funded by both external sponsors (Sponsored Research) and by Stanford University (University Research), and must be separately budgeted and accounted for. Together, these categories comprise the Organized Research distribution base, used to calculate the Organized Research F&A; rate.

   Any research and development activity that does not meet the criteria to be defined as Sponsored Research or University Research (Sections A.1 and A.2, below) shall be classified as Departmental Research, and shall be accounted for separately from Organized Research. Examples of Departmental Research include: new faculty start up funds which are provided on a non-competitive basis, funds from a faculty member's designated gift accounts expended for research that are not used to cover costs incurred on behalf of externally or University sponsored research, and University support of faculty salaries for non-sponsored research.

   1. Sponsored Research
      Research activities are properly classified as Sponsored Research if the research activity is sponsored (funded) by an external organization, i.e. a federal, state or private organization or agency. The following are examples of sponsored research projects and, in all cases, these awards are made to Stanford University:
      • awards for Stanford faculty to support their research activities
      • external Faculty "Career Awards" to support the research efforts of the faculty
      • external funding to maintain facilities or equipment and/or operation of a center or facility which will be used for research
      • external support for the writing of books, when the purpose of the writing is to publish research results
      • awards to departments, units or schools for the support of the research activities of Stanford University students or postdoctoral scholars, e.g., research training grants

      NOTE: Externally-funded research training grants are categorized as Sponsored Research (rather than Sponsored Instruction) where the primary activities of the trainees will be research. The following characteristics indicate that a sponsored agreement should be treated as a research training grant:

      1. The primary purpose of the sponsored agreement is to provide research training to selected Stanford University students or postdoctoral scholars
      2. The award is made to Stanford University, with the provision that Stanford may name the trainees
      3. If a trainee leaves Stanford, the university may reassign the support to another qualified trainee
      4. Funding is normally provided to support the trainee, rather than to accomplish a specified statement of work or research project. Note that a research project may be described in a proposal for research training grant support, but the primary purpose of the award is to support the trainee.
   2. University Research
      Research activity is properly classified as University Research if the activity is supported by either of the following:
      1. Funding that is derived from Stanford institutional funds (e.g. gifts, endowment income, interest income, technology licensing income, operating budget) through a competitive application and award process, and where the proposed activity is characterized by the same factors which generally distinguish sponsored projects (see RPH 3.2, Definitions of Sponsored Projects and Distinctions from Other Forms of Funding), such as:
         1. Existence of a statement of work
         2. Detailed financial accountability such as:
            • a line-item budget related to the project plan
            • a specified period of performance, typically defined with �start� and �stop� dates
            • a requirement to return any unexpended funds at the end of that period
            • regular financial reporting (beyond an acknowledgment of funds),
         3. Terms for the disposition of properties, OR
      2. Cost sharing expenditures which are committed to be borne by Stanford rather than by the sponsor (see RPH 3.5, Cost Sharing Policy).
         
         

      Research awards that are administered and funded by Stanford departments or programs are examples of University Research, e.g., G-CEP awards for energy research projects.

   3. Accounting for Organized Research
      

      Sponsored activities that qualify as either Sponsored Research or University Research shall be assigned to the Sponsored Research or University Research task service types in the University's accounting system. All University Research shall be separately budgeted and accounted for. Space used in the conduct of Sponsored Research or University Research shall be coded to Research (R) in the University's Space Inventory System.

      All other research activity that is not defined as either Sponsored Research or University Research shall be considered Departmental Research.

      Expenditures for Departmental Research shall be assigned to the Instruction and Departmental Research task service type in the accounting system. Space used in the conduct of Departmental Research should be coded to Departmental Research (L) in the University's Space Inventory system. See Service Type Determination matrices at https://fingate.stanford.edu/staff/resources/job_aids.html

2. SPONSORED INSTRUCTION
   

   Sponsored Instruction is defined as teaching and training activities funded by grants and contracts from federal or non-federal sponsors. Sponsored Instruction includes agreements which support curriculum development as well as teaching/training activities (other than research training) whether offered for credit toward a degree or certificate, on a non-credit basis, or through regular academic departments or by separate divisions, summer school or external division.

   Sponsored Instruction includes:
   • curriculum development projects at any level, including projects which involve evaluation of curriculum or teaching methods; such evaluation may be considered "research" only when the preponderance of activity is data collection, evaluation and reporting
   • projects which involve Stanford students in community service activities for which the Stanford students are receiving academic credit
   • general support for the writing of textbooks or reference books, video or software to be used as instructional materials.

   Accounting for Sponsored Instruction
   Activities that qualify as Sponsored Instruction shall be assigned to the Sponsored Instruction task service type in the University�s Accounting system. Space used in the conduct of Sponsored Instruction should be coded to Instruction (I) in the University's Space Inventory system.

   See Service Type Determination matrices at https://fingate.stanford.edu/staff/resources/job_aids.html

   NOTE: Research training grants are not categorized as Sponsored Instruction, but as Sponsored Research (see Section 1.A., above).

3. OTHER SPONSORED ACTIVITIES (OSA)
   

   Other Sponsored Activities (OSA) are defined as projects funded by sponsors that involve the performance of work other than Sponsored Instruction or Sponsored Research.

   OSA may include:
   • Travel grants
   • Support for conferences or seminars
   • Support for University public events such as "Lively Arts"
   • Publications by Stanford University Press
   • Support for students, staff, or teachers in elementary or secondary schools, or the general public, through outreach-related activities
   • Projects that involve Stanford faculty, staff or students in community service activities (where the Stanford students are not receiving academic credit for their involvement)
   • Support for projects pertaining to library collections, acquisitions, bibliographies or cataloging
   • Programs to enhance institutional resources, including data center expansion, computer enhancements, etc.

   Accounting for Other Sponsored Activities
   Activities that qualify as OSA shall be assigned to the Other Sponsored Activities task service type in the University's Accounting system. Space used in the conduct of OSA should be coded to Instruction (I) in the University's Space Inventory system. See Service Type Determination matrices at https://fingate.stanford.edu/staff/resources/job_aids.html

2. OTHER TYPES OF SPONSORED PROJECTS

In addition to sponsored projects as defined above, the following specialized categories of agreements are defined and handled as sponsored projects.

1. INDUSTRY-SPONSORED CLINICAL TRIALS
   Clinical trials are a subset of clinical research and must include all four of the following factors in order to qualify for the clinical trial indirect cost rate:
   1. The objective of the study is either:
      1. testing of drugs, devices, diagnostics, treatments, interventions, or preventive measures including testing for an unapproved indication or
      2. data collection to increase knowledge that would lead to enhanced safety and efficacy of a drug or device.
   2. The study must involve contact with humans. This includes studies that involve medical record reviews.
   3. The study must be performed primarily in patient care areas and qualify as an off-campus project as outlined in the Research Policy Handbook 3.3, Facilities & Administrative (F&A;), i.e., Indirect Cost and Fringe Benefit Rates.
   4. The study must be industry sponsored or funded.
   For information regarding rates for Industry-Sponsored Clinical Trials conducted elsewhere, the investigator should contact the School of Medicine's Research Management Group or the Office of Sponsored Research.


2. RESEARCH PARTICIPATION AGREEMENTS
   

   A Research Participation Agreement (RPA) is a form of sponsored project in which services of Stanford personnel, academic facilities, and/or laboratory equipment are employed on behalf of parties not otherwise affiliated with the University. A Research Participation Agreement is different from other forms of sponsored research projects in that a significant portion of the responsibility for the intellectual direction, interpretation, and/or outcome of the work rests with the outside user.

   Criteria for the establishment of Research Participation Agreements and process for their approval is outlined in Research Participation Agreements, Research Policy Handbook 10.6.

3. BETA TEST SITE AGREEMENTS

   Beta Test Site Agreements are contracts by which commercial vendors test and evaluate early product development. The proposed agreements come from companies that have agreed to provide various products and/or software to academic departments in exchange for evaluation. Beta Test Site Agreements must be processed as sponsored research projects through the Office of Sponsored Research.

4. EQUIPMENT LOAN AGREEMENTS

   Equipment Loans are agreements whereby a sponsor may loan certain equipment to Stanford, such as hardware, software and/or documentation for research use. One such example is an agreement whereby Stanford and a private entity participate in a joint research program using the company's equipment and share the results, including data. This type of agreement usually does not involve money, but enables Stanford and industry researchers the opportunity to use each other's facilities.

5. MATERIAL TRANSFER AGREEMENTS

   Material Transfer Agreements (MTAs) are contracts by which tangible research property, such as biological organisms, is provided by external sources to Stanford investigators for research, or by Stanford investigators to external researchers. Material Transfer Agreements are processed as sponsored research projects along with the fully endorsed MTA Routing Form through the Industrial Contracts Office within the Office of Technology Licensing.

6. INDUSTRIAL COLLABORATION AGREEMENTS

   Companies and universities are increasingly requiring documentation of inter-institutional research partnerships. Formal agreements in these cases will help to avoid misunderstandings and disputes over ownership of results. Collaboration contracts should be sent with a fully endorsed Proposal Routing and Development Form to the Industrial Contracts Office within the Office of Technology Licensing. Stanford has its own standard collaboration agreement that may be used as well.

7. INTERGOVERNMENTAL PERSONNEL ACT (IPA) AGREEMENTS

   An IPA is a service agreement whereby Stanford employees may serve or cross train in federal agencies for limited periods of time. Some or all of their salary and staff benefits are paid by the federal agency under Title IV of the Intergovernmental Personnel Act, while they are still considered Stanford employees, and provision has been made for their return to Stanford.

   IPAs are not considered to be sponsored projects. However, in order to monitor compliance with applicable regulations, these agreements will be administered by Stanford's Office of Sponsored Research. IPA proposals should be submitted to each school dean's office. The dean will review the appropriateness of the arrangement, and the need for certification by Stanford that the participating employee will be returned to the same or similar position upon completion of the assignment. The dean's office will notify the Stanford employee of its decision and forward the approval to the Office of Sponsored Research for submission to the appropriate government agency.