THE PENNSYLVANIA STATE 

UNIVERSITY 

 

PROCEDURES FOR THE  

ADMINISTRATION OF  

SUBCONTRACTS 

 

 March 1992 

Rev. A., February 1993 

Rev. B., August 1993 

Rev. C., March 1994 

Rev. D., May 1995 

Rev. E., December 1996 

Rev. F., August 1997 

Rev. G., June 1999 

Rev. H., August 2000 

Rev. I., July 2001 

Rev. K., January 2003 

Rev. L., June 2003 

Rev. M., June 2011 

Rev. N., September 2012 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OFFICE OF SPONSORED PROGRAMS 

           PROCEDURES FOR THE  

ADMINISTRATION OF SUBCONTRACTS 

 

I .  Introduction 

 

   The purpose of this document is to assist 

University faculty and staff in the preparation and 

administration of University‐issued subcontracts.  

The University’s official policy governing 

subcontracting appears in the Penn State Policy 

Manual, Section RA 16, “Administration of Research 

Subcontracts of the University.”   As promulgated by 

memo, signed by Mr. Charles Paoletti , Executive 

Director, Acquisition Department, Office of Naval 

Research, dated 26 May 2000, all subawards issued 

under Federal Demonstration Partnership financial 

assistance prime awards are not considered 

procurements; and therefore, are neither included in 

the University’s purchasing system nor governed by 

this document. 

   Sponsored research funded by awards made to The 

Pennsylvania State University is usually conducted 

within the physical boundaries of Penn State.  On 

occasion, however, a portion of the required work 

may need to be provided by one or more other 

institutions or companies (Third Parties) which are 

made responsible for a discrete part of the project 

award made to Penn State.  When the portion of 

work being performed by a third party constitutes a 

significant component of the research program, then 

the third party will be required to provide the 

resources necessary to conduct that portion of the 

work as a semi‐independent project.  This would 

include providing a responsible investigator at the 

work site of the cooperating institution or company 

to oversee the program activities.  Costs normally 

associated with third party effort could include any 

or all of the following:  labor costs including fringe 

benefits, materials and supplies, travel, equipment, 

miscellaneous other direct costs, and indirect costs.    

In addition,  to these costs, it would not be 

uncommon to include costs such as material 

overhead, labor overhead, general and 

administrative expense, cost of money, and profit 

associated with third parties who are commercial 

organizations.   

   The Contracts Offices at the Penn State Electro‐

Optics Center (EOC), The Penn State Applied 

Research Laboratory (ARL), and the Penn State 

College of Medicine have been delegated authority 

for Sections III, IV, and V of this procedures manual.  

Please refer to these unit’s “Subcontracting and 

Consultant Procurement Policies and Procedures” 

accordingly. 

   This policy addresses procedures involved in 

subcontracting non‐construction activities.  Should 

you be confronted with a program that may involve 

physical construction of facilities or renovations of 

existing facilities, the Office of Physical Plant (OPP) 

must be contacted prior to submission of the 

proposal to ensure compliance with proper Board of 

Trustees and University administrative procedures 

and to ensure that necessary approvals are 

obtained.  OPP will also provide the necessary 

guidance to comply with all applicable federal and 

state labor law requirements.  Office of Sponsored 

Programs (OSP) is available to assist you in 

complying with the above procedures. 

 

II. Subcontract Relationship A. The term Prime Sponsor or Sponsor refers 

to the governmental agency or commercial 

organization that makes an award directly 

to Penn State.   The award document is the 

paperwork processed by the Sponsor and 

sent to Penn State Specifying the terms 

under which the program will be 

conducted. 

B. The document which formalizes a third 

party relationship with another institution 

or commercial organization to perform 

substantive work based upon an award 

made to Penn State is called a Subcontract 

and the third party performing work under 

a subcontract is called the Subcontractor.  

The document OSP generates to formalize a 

contractual relationship with a third party is 

formally referred to as a Standard 

Subcontract.  Within this internal policy it 

will be referred to as the Subcontract. 

C. Activities performed by a private individual 

who is not an employee of Penn State are 

normally administered through a Penn 

State Consulting Agreement.  In the case 

when purchased services may involve an 

organizational entity, but does not involve 

substantive scientific research, a Purchase 

Order should be used instead of a 

subcontract.  For example, a Purchase 

Order is appropriate for the performance of 

repetitive tests or activities requiring little 

or no discretionary judgment on the part of 

the provider.  In situations such as 

described in this paragraph, a Consultant 

Agreement or a Purchase Order may be 

handled through the normal Penn State 

procurement procedures.  Wen issuing a 

Consultant Agreement, keep in mind that 

an IRS Form 1099 will be issued to the 

consultant for tax purposes. 

D. Research programs that contain the 

physical construction of a building or 

renovations to an existing structure must 

have the approval of the OPP.  However, 

the administration of any resulting 

agreement will be much the same as that 

for any research agreement.  OPP and OSP 

must be contacted prior to proposal 

development,  and who will provide 

assistance in meeting the necessary 

requirements in complying with federal and 

state laws and University procedures with 

respect to Board of Trustees approval for 

construction of facilities on campus. 

 

III. Subcontracting Procedures A. Subcontractor selection 

 

1. It is the responsibility of Penn State’s 

Project Director, along with the 

coordinated efforts from the office of 

the appropriate research dean or 

college unit director, to comply with 

federal procurement requirements in 

selecting a subcontractor.  There are 

two primary methods of selecting a 

subcontractor:  Competitive bidding or 

sole source procurement.  Competitive 

bidding is to be used as the normal 

method of subcontractor selection.  

This method requires the Project 

Director to solicit proposals from a 

number of sources and make a final 

selection of a subcontractor from those 

responding based on technical merit 

and cost objectives – normally the 

lowest bid from a technically qualified 

respondent. 

2. When the nature of the program 

requires performance from a single 

entity because requisite services or 

expertise are not available from other 

sources, the Project Director is required 

to provide sole source justification 

identifying the need for the particular 

services and why the selected 

subcontractor is the only source 

available for the needed services.  

Inclusion of a specific Subcontractor in 

a proposal, and subsequent approval of 

that proposal as written, is an 

acceptable basis for sole source.   A 

statement in the justification section of 

the Request for Issue Subcontract form 

that the award was based on a joint 

proposal from Penn State and 

Subcontractor is required.  (NOTE:  Sole 

source selection is not justified simply 

by the fact that there has been on‐

going collaboration between scientists.  

A sole source justification in these 

situations must be further justified with 

respect to the unavailability of the 

services or expertise from other 

sources). 

 

B. Subcontractor Proposal 

 

1. Regardless of the method used in 

selecting a subcontractor, there must 

be adequate time between the receipt 

of the subcontractor’s proposal and the 

Sponsor’s proposal due date to allow 

Penn State’s Project Director time to 

discuss and negotiate the scope of 

work to be performed by the 

subcontractor.  The Project Director is 

responsible for providing to the 

intended subcontractor a request for 

proposal letter (see Exhibit 1).   If the 

subcontract involves human subjects or 

animal experimentation, appropriate 

subcontractor concurrence to their 

policy must also be included in the 

proposal. 

2. A budget is submitted by the 

subcontractor which includes an 

itemization of budget categories, such 

a s  appropriate salaries, wages, fringe 

benefits, materials, supplies, 

equipment, travel and other direct 

costs, that are needed to accomplish 

the specific aspects of research that the 

subcontractor has been requested  to 

perform. Facilities & Administrative 

costs should be calculated using the 

subcontractor’s current F&A rate(s).  A 

copy of the Subcontractor’s negotiated 

rate agreement should be submitted to 

the Project Director as part of the 

Subcontractor’s proposal.   (A copy of 

the rate agreement is needed to verify 

the amount of F&A cost requested and 

to support costs in the event of an 

audit). 

3. The Subcontractor’s proposal should be 

signed by a designated business official 

of the subcontractor.  This individual 

should be someone who is authorized 

to commit the subcontractor’s 

resources toward the completion of the 

subcontract. 

 

C. Incorporating the Subcontractor’s Proposal 

into the Penn State Proposal 

 

1. Subcontract costs are included in Penn 

State’s budget as a direct cost to Penn 

State.  When calculating Penn State’s 

F&A costs, exclude that portion of each 

subcontract contained in the proposal 

which exceeds $25,000 as required by 

the Office of Management and Budget 

(OMB) Circular A‐21.  (NOTE: Penn 

State calculates F&A cost only on the 

first $25,000 of each separate 

subcontract issued under any single 

sponsored prime award regardless of 

the number of budget periods involved 

during performance.) 

 

2. During proposal processing, the 

subcontract portion of the Penn State 

proposal must be reviewed, prior to 

proposal submission, to insure that 

items discussed in this Section III, Parts 

A&B above, have been incorporated, 

and are in accordance with sponsor 

guidelines as required. 

 

a. This review must be performed by 

OSP during subcontract processing 

if it was not already performed, by 

the College Unit as required by 

Prime Sponsor, prior to the 

proposal being submitted by Penn 

State.  

 

D.  Subcontract Negotiation 

 

1. Upon receipt of subcontract request by 

OSP, it is the responsibility of OSP to 

review the subcontractor’s audit 

history and perform a risk assessment. 

2. It is the responsibility of the OSP 

Negotiator, processing the subcontract 

to review the subcontractor proposal 

and to make a determination as to the 

acceptability of the proposed costs, if 

not already done by the college unit at 

the proposal stage.  This evaluation of 

acceptable costs may be accomplished 

in a number of ways but the most 

common methods used by OSP are: 

     

a. If the subcontract value is less than 

$100,000 and we have had 

successful prior experience with 

the subcontractor, a desk review of 

proposed cost will be performed.  

Plainly stated, based on discussions 

with Penn State’s Project Director, 

the nature of work to be 

performed and possibly a 

telephone call to the financial 

representatives of the 

subcontractor, a determination is 

made as to the reasonableness of 

proposed cost to the proposed 

effort; 

 

b. If the subcontract value is between 

$100,000 and $500,000 the 

subcontractor will be required to 

provide detailed pricing support 

data to OSP for purposes of 

determining acceptability of costs.  

The subcontractor will also be 

asked to provide a copy of its most 

recently approved rate agreement 

if one has not been provided with 

the subcontractor/s proposal.  

Some commercial organizations 

are unwilling to provide copies of 

rate agreements to anyone other 

than governmental agencies.  In 

this case we will request a rate 

verification through our local 

Defense Contract Audit Agency 

(DCAA) office;  

 

c. If the subcontract value is over 

$500,000, OSP may request an 

assist audit through the Corporate 

Controller’s Office, which will 

forward the request through the 

appropriate channels to our local 

DCAA office if the prime sponsor 

has not already performed an audit 

of the subcontractor.  For 

subcontracts awarded under a 

federal prime contract, the 

subcontractor will be required to 

provide a Certificate of Current 

Cost or Pricing Data (see Exhibit 2) 

if the price negotiated between 

OSP and the subcontractor is in 

excess of $700,000 or such other 

amount as may be determined by 

Federal Regulation. 

 

E. Preparing a Subcontract 

 

1.     Upon Penn State’s receipt of a fully 

executed prime award from our sponsor, 

it is necessary to establish a subcontract 

with the appropriate third party.  It is 

OSP’s responsibility to prepare the 

subcontract document after a 

Subcontract/Subaward Request form (See 

Exhibit 3) has been signed by the Project 

Director and Research Dean and/or 

Department Head and then submitted via 

their Grants and Contracts office or 

Financial Officer. 

2.     In preparing the subcontract document, it 

is important to “flow‐down” to the 

Subcontractor the special terms and 

conditions of the prime award which both 

Penn State and the Subcontractor must 

comply.  Sponsor review and approval of 

a subcontract may be necessary prior to 

its implementation.  (Note: Sponsor 

acceptance of a Penn State budget that 

includes subcontract costs constitutes the 

acceptance of the subcontractor selected 

and not an approval of the subcontract 

document itself.) 

3.     The Subcontract/Subaward Request 

Form, mentioned above (Exhibit 3), 

provides OSP with the necessary 

information needed to develop the 

subcontract document.  Of primary 

importance is the Statement of Work, the 

budget, & the Subcontractor’s F&A rate 

agreement (if available), that relates to 

the proposed effort.  The form also asks 

whether this subcontract is being 

awarded under competitive bidding 

procedures or sole source procurement.  

The Project Director is requested to tell 

OSP if there are any other requirements 

he/she would like to see in the 

subcontract.  Examples would be: 

a.  Advance Payments (Not available 

option with Federally sponsored 

prime agreements); 

b. Copyright requirements; 

c. Publication requirements 

d. Patent requirements 

e. Equipment Ownership 

f. Federal Funding Accountability & 

transparency Act (FFATA) 

g. Export concerns 

 

4.     Upon receipt by OSP of the 

Subcontract/Subaward Request Form, the 

information is logged in to SIMS.  The 

Request for Subcontract/Subaward Form 

is reviewed by OSP’s Subcontract 

Coordinator for OMB A‐133 monitoring 

and then logged in to SIMS and given to 

the OSP Negotiator for document 

preparation.  The prime award document 

is reviewed to determine (1) whether the 

Penn State budget provided for a 

subcontract corresponds with the 

maximum amount authorized for the 

subcontract; (2)Whether terms and 

conditions that are in text form in the 

prime award are applicable to the 

subcontractor, (3) whether there will be 

certifications required of the 

subcontractor; (4) whether any general 

provisions have been incorporated into 

the prime agreement that are required 

flow‐down clauses or clauses that are 

necessary to protect the interests of Penn 

State and/or the prime sponsor, (5) and 

whether prime sponsor prior approval is 

required of the subcontract. 

5.     A Subcontract Checklist (Exhibit 4) is 

completed by the Negotiator in OSP for 

each financial action against the 

Subcontract/Subaward.  It is completed to 

determine; (1) whether the proposed 

Statement of Work relates to the effort 

identified in Penn State’s prime award; (2) 

the proposed period of performance of 

subcontract effort falls within the prime 

award period; (3) the proposed 

subcontract budget corresponds to the 

budget that was included in Penn State’s 

proposal to the prime sponsor; (4) a 

sufficient degree of negotiation was 

conducted with the subcontractor for a 

final subcontract price; (5) the 

subcontractor provided any required 

certifications voluntarily, (6) and whether 

the subcontract is to be issued to a for‐

profit or nonprofit organization. 

6.    A cost evaluation is performed to 

determine the reasonableness of 

proposed cost, a Subcontractor Cost 

Analysis (See Exhibit 4A) is prepared to 

document the degree of evaluation 

performed.  (Note: It is at this stage that 

an audit would be requested, if needed, 

and the results of that audit would 

determine the basis for acceptance of 

costs.)  The budget is then negotiated 

with the subcontractor. 

7.     If required, the subcontractor will be 

requested to submit a Certification of 

Current Cost or Pricing Data. 

8.     After considering all of the above 

variables, the subcontract document is 

prepared to suit the requirements of the 

prime award and the type of 

subcontractor with which we will be 

associated. 

9.     The Subcontract Template,(Exhibit 5), is 

designed to accommodate the majority of 

subcontracts prepared by OSP.  However, 

changes may be made to address more 

complex situations that arise either 

because of the nature of the prime award 

or the type of organization selected as the 

subcontractor. 

10. When prime sponsor approval is required, 

copies of the unsigned subcontract are 

sent simultaneously to the sponsor for 

such prior approval and to the 

subcontractor for acceptance.  Each letter 

states that documents were sent 

simultaneously thereby requesting an 

expeditious approval from our sponsor, 

and alerting the subcontractor that 

changes may need to be negotiated as a 

result of prime sponsor approval and that 

Penn State cannot sign the agreement 

until receipt of the approval.  The request 

for prior approval to Penn State’s sponsor 

will include the information required by 

FAR 52.244‐2, Subcontracts. 

11. OSP completes a Subcontract Clearance 

Form and forward the signed (by 

University Authorized Official) to the 

Subcontractor for counter‐signature.  This 

is the standard process, except under the 

following circumstances; 

 

a.  A‐133 audit review is incomplete 

b. The Subcontractor is foreign 

c. The prime sponsor requires 

     approval of the subcontract 

d. The Subcontract is greater than 

$1,000,000.00 

 

12. During subcontractor acceptance process, 

changes may need to be negotiated or 

clarifications provided.  OSP will negotiate 

all changes to the subcontract in close 

coordination with, and upon receiving 

input from the College Unit and Project 

Director.  When changes are made as a 

result of OSP negotiations with the 

Subcontractor, OSP will issue a revised 

subcontract to the Subcontractor, 

reflecting the accepted changes. 

13.  When the University signs first:  A fully 

executed subcontract is received.  OSP 

will put to “Contract File” in SIMS and 

electronically scan and distribute 

internally to the college Research 

Administration Office and the Principal 

Investigator.  OSP will inter‐office mail a 

paper copy of the fully executed 

subcontract and supporting file material 

to Research Accounting for filing with the 

prime agreement file.   

14. When the University signs last: Upon 

receipt of a signed subcontract from the 

Subcontractor and receipt of prime 

sponsor approval, if required ,  and the A‐

133 audit review is complete, OSP will 

complete a subcontract clearance form 

(See Exhibit 6) and forward to the 

appropriate University authorized official 

for counter‐signature.  Once 

countersigned, OSP sends a fully executed 

copy of the subcontract to the 

Subcontractor.  OSP will put “to contract 

file” in SIMS and electronically scan and 

distribute internally to the college 

Research Administration Office and the 

Principal Investigator.  OSP will inter‐

office mail a paper copy of the fully 

executed subcontract and supporting file 

material to Research Accounting for filing 

with the prime agreement file.   

 

IV.    Post‐Award Subcontract Administration 

         

A.  Technical Monitoring 

 

1. As prime award recipient, Penn State 

assumes the ultimate responsibility for 

the conduct and completion of the 

project.  Subcontractor progress 

reports should be reviewed thoroughly 

by Penn State’s Project Director and 

discussed with the subcontractor as 

needed.  The Subcontractor’s progress 

report will usually be incorporated into 

the progress report submitted to the 

sponsor by Penn State. 

       

 

B. Financial Monitoring 

 

1. In accordance with the Payment article 

of this subcontract, invoices are to be 

sent to the College financial point of 

contact, by the Subcontractor for 

review and approval by the Project 

Director. 

2. Prior to approval by the Project 

Director, the invoice should be 

reviewed to determine that the 

amount being requested for payment is 

consistent with the amount of effort 

performed during the billing period.  

Normally, the Project Director would 

most likely be familiar with effort 

performed by the subcontractor 

through telephone conversations, 

technical meetings, progress reports or 

possibly site visits.  If there are 

problems noted in the invoice, such as 

equipment purchased without approval 

or more labor charged than Penn 

State’s Project Director feels was 

expended, the invoice SHOULD NOT BE 

APPROVED.  The College Unit and OSP 

shall resolve any problems with the 

subcontractor.  Once the College Unit is 

satisfied with the invoice, the College 

Unit shall process payment(s) through 

IBIS as a Special Request for Check. 

3. Any problems encountered during the 

life of the subcontract should be 

appropriately addressed to the 

Research Coordinator or equivalent for 

the Project Director’s College  and/or 

OSP. 

4. The subcontractor will be required to 

furnish all reports identified in the 

subcontract document and in 

accordance with the Reports 

Distribution article of the subcontract. 

   

C. Subcontract Amendments 

 

1. Should it be determined during the life 

of the prime agreement that additional 

effort is required to be performed by 

the subcontractor, a request to issue an 

amendment, via the sub‐request form 

should be sent to OSP.  The request 

should include the subcontract number, 

name of the subcontractor, and the 

necessary information required to 

prepare the amendment, i.e., extending 

time, adding cost, amending existing 

budgets, etc. 

 

 

D. Termination 

 

1. Should it be necessary to terminate a 

subcontract, the OSP Negotiator shall 

coordinate the termination with the 

College Unit Research Administrator 

and/or Penn State’s Project Director.  

OSP will expeditiously forward a 

termination notice via facsimile, email, 

or overnight carrier to the 

Subcontractor.  The OSP Negotiator 

may utilize, with appropriate 

modifications, the sample termination 

notice contained in FAR 49.601‐2. 

2. For subcontracts awarded under 

federal prime procurement awards, the 

OSP Negotiator shall terminate the 

subcontract in accordance with the 

subcontract’s termination clause 

Settlement of terminated subcontracts 

shall be in accordance with FAR.108. 

3. For subcontracts awarded under non 

federal prime awards, the OSP 

Negotiator shall terminate the 

subcontract in accordance with the 

subcontract’s termination clause. 

 

 

    

V. Closing Requirements 

 

 A. Required Documents 

 

1. The subcontractor is required to submit 

the following documents at subcontract 

completion in accordance with the 

Closeout Requirements article of the 

subcontract: 

a. Final Technical Report 

b. Final Cumulative Invoice 

c. Subcontractor’s Release (See 

Exhibit 7) 

d. Subcontractor’s Assignment of 

Refunds, Rebates, Credits, and 

Other Amounts (See Exhibit 8) 

e. A‐133 Certification, if applicable 

(See Exhibit 9) 

f. Final Inventory of Property (See 

Exhibit  10) 

g. Report of Inventions and 

Subcontracts (See Exhibit  11) 

 

2. When the final cumulative invoice has 

been received by the College unit point of 

contact, the College unit shall be 

responsible for the same type of review 

and approval procedures as required for 

the routine monthly invoice evaluations 

mentioned under Section IV, Paragraph B, 

Subparagraphs 1 through 4. 

3. The College unit shall forward a copy of 

the final cumulative invoice along with a 

completed Certification of Technical 

Completion (See Exhibit 12) to OSP for 

release of final payment.  Upon review of 

the final cumulative invoice by OSP, 

authorization is sent to the College unit to 

release final payment.  The College unit 

shall process final payment through IBIS as 

a Special Request for Check (NOTE: If the 

subcontract is going to be extended, this 

certification is not required, and OSP 

should be notified immediately so the 

closeout procedure can be stopped.)  OSP 

will not approval final payment until the 

Certification of Technical Completion has 

been received. 

4. OSP will complete the Subcontract 

Closeout Checklist (See Exhibit 13) to 

ensure compliance with the terms of the 

subcontract and audit requirements.  The 

original form, when completed, will be 

sent to Research Accounting to be filed 

with the appropriate prime agreement 

closing papers.  A copy of the form will be 

maintained in OSP. (This form will be 

completed for all subcontracts issued.) 

a. In the event any requested closing 

papers are not received from the 

Subcontractor, OSP will determine 

if the requested closing papers 

(See Section V. A. 1.) are required 

for administrative closeout using 

the following criteria: 

i. Federal flow‐through funds 

1.     Report of Inventions and 

Subcontracts: Per 37 CFR 

401.14 proceed with closeout 

if DD882 is not received 

within two months after 

forwarding closing papers to 

the Subcontractor. 

2.     Inventory of Property:  

Proceed with closeout if no 

property was budgeted for in 

the subcontract and property 

was not including in the 

Subcontractor’s cumulative 

cost breakdown. 

3.    A‐133 Audit Reports:  If 

Subcontractor is a foreign or 

commercial entity,  

an A‐133‐type audit is not 

required, as the A‐133 audit is 

not applicable to foreign or 

commercial entities. 

ii. Non‐Federal flow‐through funds 

1. Report of Inventions and 

Subcontracts:  Verify intellectual 

property requirements in prime 

award. 

2. Inventory of Property: Proceed 

with closeout if no property was 

budgeted for in the subcontract 

and property was not included in 

the Subcontractor’s cumulative 

cost breakdown.  Verify property 

requirements in prime award. 

5.  The Subcontract Closeout Desk Review 

Worksheet (See Exhibit 14) is prepared by 

OSP at the time of subcontract closeout 

and is used in conjunction with the final 

cumulative invoice review and approval, as 

noted under Section V, Paragraph 3.  This 

form is used in determining the 

allowability of costs incurred by the 

Subcontractor and the appropriateness of 

the costs incurred to the guidelines of the 

prime award. 

6. Exhibit 15, Administrative Closeout 

Memorandum, is used in lieu of a closeout 

audit of a subcontract unless a formal 

audit is deemed appropriate due to the 

nature of the program and/or 

Subcontractor A‐133 audits.  If applicable, 

OSP will utilize the quick‐closeout 

procedures in accordance with FAR 42.708. 

 

 

 

 

 

 

 

 

 

 

             

             

 

       

 

   

 

 

 

   

 

 

Subject: Request for Submission of a Subcontract Proposal Under The Pennsylvania State University’s Research Proposal Entitled “_______________________________”, Submitted to _____________________ by Penn State’s Project Director, _______________________ (RFP/RFQ No.______)

Dear _____________:

Your organization has been selected as a potential subcontractor to The Pennsylvania State University, and your proposed statement of work and cost estimate will be included in Penn State’s proposal to the intended sponsor for the referenced research project.

To expedited Penn State’s evaluation of your proposal, and to ensure proper inclusion of your effort and cost in our proposal to the sponsor, we are requesting that you prepare a Statement of Work and corresponding cost proposal to be submitted to Penn State’s Project Director no later than __________.

If a resulting prime agreement to Penn State is funded with federal funds, you should submit a copy of your most recent negotiated rate(s) agreement with your proposal. In addition, if your proposal is over $650,000, please include a completed Certificate of Current Cost or Pricing Data, a copy of which is attached.

During the course of your proposal preparation, should you have any questions relating to the cost proposal requirements, you may contact ______________, Research Coordinator for the College of _________________ at 814-86_-____.

Sincerely,

CERTIFICATE OF CURRENT COST OR PRICING DATA This is to certify that, to the best of my knowledge and belief, the cost or pricing data (as define din Section 15.401 of the Federal Acquisition Regulation (FAR) and required under FAR subsection 15.403-4) submitted, either actually or by specific identification in writing, to the Contracting Officer or to the Contracting Officer’s representative in support of _____________* are accurate, complete and current as of ___________**. This certification includes the cost or pricing data supporting any advance agreements and forward pricing rate agreements between the offeror and the Government that are part of the proposal. Firm The Pennsylvania State University Signature Name David W. Richardson Title Director, Office of Sponsored Programs Date of Execution *Identify the proposal, request for price adjustment, or other submission involved, giving the appropriate identifying number (e.g., RFP No.). ** Insert the day, month, and year when price negotiations were concluded and price agreement was reached or, if applicable, an earlier date agreed upon between the parties that is as close as practicable to the date of agreement on price. *** Insert the day, month, and year of signing, which should be as close as practicable to the date when the price negotiations were concluded and the contract price was agreed to.

SUBCONTRACT/SUBAWARD REQUEST FORM 

 Please provide the information requested below and forward the request, signed by the Principal Investigator, Dean/Consortium Director/Institute Director/CEO, and Financial Officer, to the Office of Sponsored Programs.  The Subrecipient’s proposal must be attached and include the following:   □ Cover Page     □ Statement of Work     □ Budget     □ F&A Rate Agreement (if applicable)      □ Representations and Certifications (if applicable)                        1. For subcontracts/subawards being issued under a Prime Award from a PHS Agency (e.g., NIH, FDA, etc.) or other agency that has adopted similar Financial Conflict of Interest requirements, please answer the following.  Otherwise, please proceed to item #2.     Have all necessary conflict of interest checks and reviews been completed by the subrecipient institution?    ______ Yes ______ No* 

 *Note: Subawards/Subcontracts will not be executed until such review has been completed.  It is a violation of federal law to allow spending on a subaward/subcontract, until the subrecipient institution has either certified its own compliance with PHS COI policy or been reviewed by PSU’s COI program.   

                         2. Request to issue: 

□ Initial Subaward (SA)/Subcontract (SC) 

□ Amendment to Subaward/Subcontract No.:  ________________________________________________ No Cost Extension___   Additional Funding ___ New End Date & Additional Funding ___  Decrease in Funds ___  3. OSP Number of Prime Award:            4. Prime Award Number:             5. Penn State University’s Prime Award is a: 

□  Grant – Complete all sections (as applicable) except #13  

□  Contract – Complete all sections (as applicable)  6. Subcontract/Subaward Information:               Subrecipient Administrative Contact:                Subrecipient    Name               SA/SC Project Director    Address                Address SA/SC/Amendment Amount                      Phone SA/SC/Amendment Period of Performance                    Email/Website Cumulative amount funded to date (including this action)         DUNS Number 

Page 2 of 3

 7. Prime Award Information:     Penn State Project Director:           Prime Sponsor    Name             Prime Award Funded Amount to Date    Address             Period of Performance    Phone             Budget/Fund Number   CFDA Number  Email                                 8. Is there a cost sharing commitment associated with this subaward/subcontract?    

  Yes  □    No □  If yes, please provide amount specific to this action:             9. Is Subrecipient requesting F&A?    

  Yes □  No □   N/A □   If “Yes”, please attach rate agreement.      10. Penn State’s Project Title:  _____________________________________________________________    a. Additional description if project title does not adequately describe what the 

subrecipient is doing:         11. Other Information  a. Provide any information which you feel will be useful to the person preparing the subaward / subcontract, e.g., change/no change in statement of work, unusual publication requirements, unusual intellectual property requirements, etc.     

       b. Foreign Subrecipient Requirements: 

 1.  If issuing the subaward/subcontract to a foreign entity, please provide the milestone payment instructions.  (Example: For a subaward totaling $15,000 for the period 10/1/2010‐9/30/2011 ‐  Issue equal payments of $5,000 upon receipt of invoice and required reports, as follows: (1) Upon full execution of Agreement; (2) June ___, 2011; and (3) September ___, 2011.)       

             

                    2.  Has an export review been completed?  □ Yes   Log #:____________  □  No    12. Reporting Requirements (if not checked, reporting requirements will be monthly)  

□ Monthly     □ Quarterly     □ Annually      □ Other                      

Page 3 of 3

                13. If Prime Award is a contract, complete either Section 13.A or 13.B (Competition or Sole Source Justification)  

a. Competition  Attach separate sheet which includes the following: 

i. Name and address of each potential subcontractor contacted ii. Name and amount proposed by each potential subcontractor responding iii. Subcontractor selected iv. Reason for selection 

 b. Sole Source Justification:  Provide justification for selection of subcontractor if 

competitive bids were not solicited.    □  Joint Proposal, or; □  Sole Source Justification provided on a separate sheet.  

     By signing below,  I certify that  I have read the  following statements and certify that they are accurate and truthful to the best of my knowledge and belief:  The project or relationship with this Subrecipient (PI initials) _____  does or does not  ____ present a potential for conflict of interest or the appearance of a conflict for investigators so involved have provided a complete disclosure of this matter, as instructed by current University policy and/or Federal regulation.  The  Subrecipient’s  proposed  costs  have  been  reviewed  by  the  Principal  Investigator  and  are considered reasonable for the Subrecipient’s level of expertise and the technical effort proposed by the Subrecipient.  Funding is available for this subaward/subcontract and is an allowable cost under the terms of the Award.  Principal Investigator    Approved:           Signature  Date  Dean(s), Consortium/Institute Director, CEO      or Designated Representative           Financial Officer or  Date  Title  Date Designated Representative        

 Issued 5/1/2002,  Last revised 1/15/2013    

SUBCONTRACT CHECKLIST Prime Agreement PSU PI Subcontractor Sub PI Type of Subcontractor ____Educational Institution ____Hospital ____Non-Profit ____For-Profit Type of Prime Agreement ____Contract ____Other ____________________ Type of Subcontract ____Cost Reimbursement ____Cost Plus Fixed Fee ____Firm Fixed Price ____Other_____________________ _____Basic ____Amendment No. ____ Section A: Yes N/A ___ ___ Subcontractor Questionnaire ___ ___ PI/College Request to Issue Subcontract ___ ___ Statement of Work ___ ___ Budget ___ ___ Indirect Cost Rate Agreement ___ ___ Agency Subcontract Approval ___ ___ Deliverable other than reports/data (i.e., software, prototype) ___ ___ Sole source justification complete ___ ___ Certifications ___Included in Proposal ___Attached to Subcontract ___ ___ Benefit Rate Verification ___ ___ Cost Analysis (when federal funds are involved, a cost analysis must be done) ___ ___ Certification of Cost or Pricing Data (required for subcontract over $650,000) ___ ___ Small Business Subcontracting Plan (for subcontracts over $650,000) Negotiation Notes (attach if necessary) Negotiated Subcontract Value this Action __________________________________________________ ___________________________________________________ _____________________ Subcontract Negotiator Date Log No. ____________ OSP 3/02 Updated 7/09

SUBCONTRACT COST ANALYSIS

If the item of cost is included in Subcontractor’s budget, please check and complete the analysis and/or verification. Attach any worksheets. Check if Applicable Items of Cost _______ (1) Salaries and Wages: The basis for proposed labor costs or percent of effort has been identified as

stated below (e.g., historical hours, engineering estimates). Costs are in accordance with current and reasonably projected schedules and policies of the Subcontractor. The escalation rate used is approximately ____% and appears to be in compliance with Federal guidelines. (If not, explain.)

___________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________

_______ (2) Fringe Benefit Rates: The proposed rate(s) are in accordance with current and prospective

Government approved rates and are correctly applied to proper base. _______ (3) Tuition: The proposed cost is current and in accordance with the Subcontractor’s policies and/or

Government approved rates. (If not, explain.) _________________________________________________________________________________

_________________________________________________________________________________ _________________________________________________________________________________

_______ (4) Materials and Supplies: Proposed items are expendable. Amounts proposed are based on catalog

prices or established competitive market prices sold in substantial quantities to the general public. (If not, explain.) . __________________________________________________________________________

_________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________

______ (5) Equipment: Amounts proposed are based on price quotes from competing vendors or from fully

justified sole sources. (If not, explain.) _________________________________________________________________________________

_________________________________________________________________________________ _________________________________________________________________________________

_________ (6) Travel: The Subcontractor’s proposed travel is necessary for proper conduct of the research effort. The individual elements of travel are reasonable based on the following justification (Note: Foreign travel must be coordinated with Prime Sponsor):

_________________________________________________________________________________ _________________________________________________________________________________

_______ (7) Consultant Costs: Costs show number of days, daily rate and estimated travel/per diem costs. Costs are in compliance with Specific Federal agency maximum allowable rates. The need for consultants is fully justified.

_________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________

_______ (8) Indirect Costs: The rate is applied to proper base: ____ Direct Salaries and Wages, ____ Total Direct Cost, ____Modified Total Direct Cost, ____Other____________________

The rate has been verified by a negotiation memorandum. If none exists, a disclosure of the contents of the rate has been made and approved by ACO as stated below.

_______ (9) The Subcontractor’s cost proposal does not contain any lower-tier subcontracts for which Certified Cost or Pricing Data are required. No lower tier subcontracts budgeted.

_______ (10) Fixed Fee: The Subrecipient is a ____ for-profit organization/____ non-profit organization. The fee

factor is ____ and is considered fair and reasonable based on the attached weighted guidelines. Negotiations conducted with: Institution: ____________________________________________________________________________

Name/Title: ____________________________________________________________________________ Phone No.: ____________________________________________________________________________ Concluded On: _________________________________________________________________________

OSP/SA 8/94 Revised 3/02

S UBCONTRACT

S UBCONTRACT NO. THIS AGREEMENT, en tered in to a s of en ter s ta r t da te, by a n d between Th e Pen n s ylva n ia Sta te Un ivers ity, a Corpora t ion orga n ized a n d exis t in g u n der th e la ws of th e Com m on wea lth of Pen n s ylva n ia , with it s p r in cipa l office a t Un ivers ity Pa rk , Pen n s ylva n ia (h erein a fter refer red to a s "Pen n Sta te") a n d en ter Su bcon tra ctor Na m e, town a n d s ta te (h erein a fter refer red to a s "Su bcon t ra ctor"); WITNES S ETH THAT: WHEREAS , Pen n Sta te h a s received Pr im e (Pick On e) Coopera t ive Agreem en t / Con tra ct / Gra n t No. from _____________ (h erein a fter refer red to a s "______") u n der CFDA Nu m ber __________, to p rovide for cer ta in res ea rch work ; a n d WHEREAS , Pen n Sta te des ires to h a ve th e Su bcon t ra ctor per form a cer ta in por t ion of s a id res ea rch work ; a n d WHEREAS , th e Su bcon t ra ctor h a s repres en ted th a t it h a s th e p res en t a b ility to per form s a id res ea rch work ; NOW THEREFORE, th e pa r t ies h ereto do h ereby m u tu a lly a gree a s follows : SECTION A St a n d a rd Provis ion s ARTICLE I - S t a t em en t of Wor k Th e work to be per form ed by th e Su bcon t ra ctor rela tes to a p roject en t it led “______________.” Th e work to be a ccom plis h ed is s et for th in th e Su bcon t ra ctor 's S ta tem en t of Work a ppen ded h ereto a s At ta ch m en t I. ARTICLE II - Rep or t s Th e Su bcon t ra ctor s h a ll s u bm it p rogres s repor ts in a ccorda n ce with th e rela t ive p rovis ion s con ta in ed in At ta ch m en t I. In th e a bs en ce th ereof, th e Su bcon tra ctor s h a ll s u bm it m on th ly tech n ica l p rogres s repor ts to Pen n Sta te's Project Director , _________________.

ARTICLE III - Per iod of Per for m a n ce Th e per iod of per form a n ce u n der th is s u bcon tra ct s h a ll com m en ce on _______________ a n d con t in u e th rou gh _________________. ARTICLE IV – Cos t Opt ion s (you m a y crea te you r own ): (1 ) Tota l Es t im a ted Cos t Th e tota l es t im a ted cos t to Pen n Sta te for th e per form a n ce of th is s u bcon t ra ct s h a ll n ot exceed $________________ u n les s ch a n ged by wr it ten a m en dm en t to th is s u bcon t ra ct . Th e Su bcon tra ctor 's bu dget is a ppen ded h ereto a s At ta ch m en t II. (Th is la s t s en ten ce m a y rea d : Th e Su bcon tra ctor ’s bu dget form s a pa r t of At ta ch m en t ___.) (2 ) Tota l Es t im a ted Cos t (NIH Su bs ) Th e tota l es t im a ted cos t to Pen n Sta te for th e per form a n ce of th is s u bcon t ra ct s h a ll n ot exceed $________________ u n les s ch a n ged by wr it ten a m en dm en t to th is s u bcon t ra ct . Th e Su bcon t ra ctor 's bu dget is a ppen ded h ereto a s At ta ch m en t II. (Th is s en ten ce m a y rea d : Th e Su bcon tra ctor ’s bu dget form s a pa r t of At ta ch m en t ___.) Th e Su bcon tra ctor s h a ll n ot ify in wr it in g Pen n Sta te’s Con tra ct in g Office, a s repres en ted u n der Ar t icle___, wh en u n obliga ted fu n ds in exces s of 25 percen t of th e tota l a m ou n t a wa rded will be ca r r ied over to th e s u bs equ en t bu dget per iod . Th e cu r ren t bu dget per iod is _________ th rou gh ____________. (3 ) Tota l Es t im a ted Cos t (Us e for In crem en ta l Fu n din g) Th e tota l es t im a ted cos t to Pen n Sta te for th e per form a n ce of th is s u bcon t ra ct s h a ll n ot exceed $__________ u n les s ch a n ged by wr it ten a m en dm en t to th is s u bcon t ra ct . Th e tota l a m ou n t p res en t ly a va ila b le a n d a llot ted to th is s u bcon t ra ct is _________ for th e per iod _________ th rou gh ____________ is a ppen ded a s At ta ch m en t II. (4 ) Tota l Es t im a ted Cos t a n d Fixed Fee (Us e with CPFF Su bs ) It is h ereby u n ders tood a n d a greed th a t th e tota l es t im a ted a llowa ble cos t a n d fixed fee of th is s u bcon tra ct s h a ll n ot exceed $____________ a n d $___________, res pect ively, tota lin g $_______________ for th e per iod s ta ted u n der th is Sect ion A, Ar t icle III. th e Su bcon t ra ctor ’s bu dget , da ted _______, is a ppen ded h ereto a s At ta ch m en t II. (5 ) Tota l Es t im a ted Cos t a n d Fixed Fee (In crem en ta l Fu n din g) It is h ereby u n ders tood a n d a greed th a t th e tota l es t im a ted a llowa ble cos t a n d fixed fee of th is s u bcon t ra ct s h a ll n ot exceed $____________ for th e per iod u n der th is Sect ion A, Ar t icle III. However , th e a m ou n t cu r ren t ly a va ila b le a n d a llot ted u n der th is s u bcon tra ct for th e per iod ________ th rou gh _________ is in clu d in g a p ro-ra te por t ion for th e fixed fee. Th e Su bcon t ra ctor ’s bu dget , da ted ________, is a ppen ded h ereto a s At ta ch m en t II. (6 ) Su bcon t ra ct Pr ice (Us e with Fixed Pr ice Su bs ) Th e work to be per form ed h ereu n der s h a ll be per form ed a t a firm fixed pr ice of $__________. (7 ) Tota l Es t im a ted Cos t a n d Cos t Sh a r in g

Th e tota l es t im a ted cos t to Pen n Sta te for th e per form a n ce of th is s u bcon tra ct s h a ll n ot exceed $__________ u n les s ch a n ged by wr it ten a m en dm en t to th is s u bcon t ra ct . Th e Su bcon tra ctor ’s bu dget is a ppen ded h ereto a s At ta ch m en t II. Th e Su bcon tra ctor s h a ll cos t s h a re to th e exten t s et for th in At ta ch m en t II. ARTICLE V - Pa ym en t Opt ion s (you m a y crea te you r own ): (1 ) Pa ym en t (Us e with Com m on wea lth Fu n ds ) Pen n Sta te s h a ll r eim bu rs e th e Su bcon tra ctor n ot m ore often th a n m on th ly for a llowa ble cos ts a ctu a lly in cu r red a n d ch a rgea b le to Pen n Sta te in a ccorda n ce with th e bu dget ca tegor ies in d ica ted in At ta ch m en t II u pon bein g in voiced by th e Su bcon tra ctor a n d u pon a pprova l of th e in voice by Pen n Sta te's Project Director . All in voices s h a ll be s u bm it ted in a form a t s im ila r to th e s a m ple in voice a ppen ded h ereto a s At ta ch m en t III, bu t a t a m in im u m s h a ll in clu de a pp lica b le cos t s h a r in g, cu r ren t a n d cu m u la t ive cos ts , s u bcon t ra ct n u m ber a n d cer t ifica t ion . INVOICES WHICH DO NOT REFERENCE PENN STATE’S SUBCONTRACT NUMBER SHALL BE RETURNED TO THE SUBCONTRACTOR. In voices s h a ll be s u bm it ted to: Pick on e of th e followin g: (PTI) Ms. Cathy Romig

Pen n s ylva n ia Tra n s por ta t ion In s t itu te 201 Tra n s por ta t ion Res ea rch Bu ild in g Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 865-2606 Em a il: cdw2@ps u .edu (Ag) Ms . Su s a n Morga n Coord in a tor , Gra n ts a n d Con tra cts College of Agr icu ltu ra l Scien ces 229 Agr icu ltu ra l Adm in is t ra t ion Bldg. Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 865-5419 Fa x: (814) 863-6152 Em a il: s m k6@ps u .edu (IST) Ca rey Stover

College of In form a t ion Scien ces a n d Tech n ology 334 In form a t ion Scien ces a n d Tech n ology Bu ild in g Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 8656179 Fa x: (814) 865-7484 Em a il: cs tover@is t .ps u .edu

(En g) Ms . Va n es s a Bier ly College of En gin eer in g 101 Ha m m on d Bu ild in g Un ivers ity Pa rk , PA 16802 Ph on e: (814) 863-7690

Fa x: (814) 865-6217 Em a il: vrb113@ps u .edu (Sc) Ms . Lis a Good-Reiter Eber ly College of Scien ce 513 J oa b L. Th om a s Bu ild in g Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 863-0302 Fa x: (814) 865-3634 Em a il: lxy2@ps u .edu (SSRI) Ms . Sh er ry Yocu m Coord in a tor , Res ea rch & Adm in is t ra t ive Services Socia l Scien ces Res ea rch In s t itu te 601 Os wa ld Tower Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 863-8258 Fa x: (814) 863-8342 Em a il: yocu m @pop.ps u .edu (HHD) Mr . J erom e It in ger Director of Gra n ts a n d Con tra cts College of Hea lth a n d Hu m a n Developm en t 201 Hen ders on Bu ild in g Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 863-7241 Fa x: (814) 863-8698 Em a il: CHHDRO@ps u .edu (EMS) Ms . Su s a n La va n 248B Deike Bu ild in g College of Ea r th a n d Min era l Scien ces Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 865-7650 Fa x: (814) 865-2084 Em a il: s a l5@ps u .edu (EDU) Ms . Ta m m y Fet terolf Coord in a tor of Res ea rch a n d Adm in is t ra t ive Services College of Edu ca t ion 243 Ch a m bers Bu ild in g Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 865-0956 Fa x: (814) 865-8733 Em a il: tbb2@ps u .edu (MRI/ Ms . Nik i Pa ge PSIEE/ St ra tegic In terd is cip lin a ry Res ea rch Office (SIRO) SIRO) 101 La n d a n d Wa ter Res erve Bu ild in g Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802

Ph on e: (814) 865-3422 Fa x: (814) 865-3378 Em a il: n lg4@ps u .edu (LA) Ms . Tr is h Alexa n der Coord in a tor , Gra n ts a n d Con tra cts Libera l Ar ts Res ea rch Office 118 Spa rks Bu ild in g Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 865-8030 Fa x: (814) 863-2603 Em a il: ta lexa n der@ps u .edu (Bu s ) Ms . Pa t ty Hickm a n Sm ea l College of Bu s in es s Adm in is t ra t ion 212 Bu s in es s Bu ild in g Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 863-9406 Em a il: pa s 163@ps u .edu (Ca pita l) Mr . J a y Sp iegel As s is ta n t Fin a n cia l Officer Pen n Sta te Ha r r is bu rg 120 Olm s ted Bu ild in g Middletown , PA 17057 Ph on e: (717) 948-6014 Em a il: xjs 2@ps u .edu (In t ’l. Prgs ) Ms . Rita Morbeto In tern a t ion a l Progra m s 222 Bou cke Bu ild in g Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 865-7681 Fa x: (814) 863-1738 Em a il: r s m 4@ps u .edu (Du Bois ) Ms . Ka th y Neu reiter Pen n Sta te Du Bois College Pla ce Du Bois , PA 15801 Ph on e: (814) 375-4792 Fa x: (814) 375-4784 Em a il: km n 2@ps u .edu (Berks ) Ms . J u dy Don a h u e Pen n Sta te Berks 125 Fra n co Bu ild in g Rea d in g, PA 19610-6009 Ph on e: (610) 396-6224 Em a il: jld1@ps u .edu (Leh igh ) Ms . Sa n dy Litzen berger

Pen n Sta te Leh igh Va lley CE Adm in is t ra t ion Aca dem ic Bu ild in g Fogels ville, PA 18051 Ph on e: (610) 285-5054 Em a il: s xl3@ps u .edu (Com m u n ica t ion ) Ms . J a n e Agn elly Fin a n cia l Officer 201 Ca rn egie Bu ild in g Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , PA 16802 Ph on e: (814) 863-6138 Em a il: jla 3@ps u .edu (Beh ren d) Ms . Pa t ty La n ich

Pen n Sta te Er ie, Th e Beh ren d College 4701 College Dr ive, Sou th Cot ta ge Er ie, PA 16563 Ph on e: (814) 898-7596 Fa x: (814) 898-6461 Em a il: pa l16@ps u .edu

A fin a l s ta tem en t of cos ts in cu r red , m a rked "FINAL", m u s t be s u bm it ted NOT LATER THAN s ixty (60) da ys a fter s u bcon t ra ct com plet ion . All pa ym en ts s h a ll be con s idered p rovis ion a l a n d s u b ject to a d ju s tm en t with in th e tota l es t im a ted cos t es ta b lis h ed by Ar t icle IV, Sect ion A in th e even t s u ch a d ju s tm en t is n eces s a ry a s a res u lt of a n a u d it by th e Com m on wea lth . If th e Su bcon t ra ctor becom es a wa re of a du p lica te pa ym en t or th a t th e Un ivers ity h a s oth erwis e overpa id on a n in voice pa ym en t , th e Su bcon t ra ctor s h a ll im m edia tely n ot ify th e Un ivers ity Con tra ct Repres en ta t ive in wr it in g a n d requ es t in s t ru ct ion s for d is pos it ion of th e overpa ym en t . (2 ) Pa ym en t (Us e w/ Federa l Fu n ds ) Pen n Sta te s h a ll r eim bu rs e th e Su bcon tra ctor n ot m ore often th a n m on th ly for a llowa ble cos ts a ctu a lly in cu r red a n d ch a rgea b le to Pen n Sta te in a ccorda n ce with th e bu dget ca tegor ies in d ica ted in At ta ch m en t II u pon bein g in voiced by th e Su bcon tra ctor a n d u pon a pprova l of th e in voice by Pen n Sta te's Project Director . All in voices s h a ll be s u bm it ted in a form a t s im ila r to th e s a m ple in voice a ppen ded h ereto a s At ta ch m en t III, bu t a t a m in im u m s h a ll in clu de a pp lica b le cos t s h a r in g, cu r ren t a n d cu m u la t ive cos ts , s u bcon t ra ct n u m ber a n d cer t ifica t ion . INVOICES WHICH DO NOT REFERENCE PENN STATE’S SUBCONTRACT NUMBER SHALL BE RETURNED TO THE SUBCONTRACTOR. Cos ts in cu r red u n der th is s u bcon t ra ct s h a ll be in a ccorda n ce with th e con t ra ct cos t p r in cip les a n d p rocedu res con ta in ed in (Pick a ppropr ia te cos t p r in cip les ) OMB Circu la r A-21or OMB Circu la r A-122 or FAR 31 .2 or FAR 31 .3 a s in effect on th e da te of th is s u bcon tra ct . In voices s h a ll be s u bm it ted to:

In s er t P.O.C. from Opt ion 1 , a bove

A fin a l s ta tem en t of cos ts in cu r red , m a rked "FINAL", m u s t be s u bm it ted to th e Ma n a ger of Res ea rch Accou n t in g NOT LATER THAN s ixty (60) da ys a fter s u bcon tra ct com plet ion .

All pa ym en ts s h a ll be con s idered p rovis ion a l a n d s u b ject to a d ju s tm en t with in th e tota l es t im a ted cos t es ta b lis h ed by Ar t icle IV, Sect ion A in th e even t s u ch a d ju s tm en t is n eces s a ry a s a res u lt of a n a u d it by th e Govern m en t . If th e Su bcon t ra ctor becom es a wa re of a du p lica te pa ym en t or th a t th e Un ivers ity h a s oth erwis e overpa id on a n in voice pa ym en t , th e Su bcon t ra ctor s h a ll im m edia tely n ot ify th e Un ivers ity Con tra ct Repres en ta t ive in wr it in g a n d requ es t in s t ru ct ion s for d is pos it ion of th e overpa ym en t . (3 ) Adva n ce Pa ym en t (Us e w/ Federa l Fu n ds ) Upon execu t ion of th is s u bcon t ra ct a n d n ot m ore often th a n on ce ea ch qu a r ter (qu a r ter ly pa ym en ts m a y va ry) th e Su bcon tra ctor s h a ll s u bm it a requ es t for a dva n ce pa ym en t . ALL REQUESTS FOR ADVANCE PAYMENT SHALL REFERENCE PENN STATE’S SUBCONTRACT NUMBER. REQUESTS WHICH DO NOT REFERENCE PENN STATE’S SUBCONTRACT NUMBER SHALL BE RETURNED TO THE SUBCONTRACTOR. Th e requ es t for a dva n ce pa ym en t s h a ll be s u bm it ted to:

In s er t P.O.C. from Opt ion 1 , a bove In a dd it ion to th e requ es t for a dva n ce pa ym en t , th e Su bcon tra ctor s h a ll s u bm it a s ta tem en t of cos ts in cu r red on a qu a r ter ly a n d cu m u la t ive ba s is . All pa ym en ts by Pen n Sta te a re s u b ject to a pprova l by Pen n Sta te’s Project Director , Dr . ____________. All pa ym en ts s h a ll be con s idered p rovis ion a l a n d s u b ject to a d ju s tm en t with in th e tota l es t im a ted cos t es ta b lis h ed by Ar t icle IV, Sect ion A in th e even t s u ch a d ju s tm en t is n eces s a ry a s a res u lt of a n a u d it by th e (In s er t Spon s or ) ____________. OR Th e Su bcon t ra ctor s h a ll be reim bu rs ed for th e cos ts in cu r red by h im in per form in g s ervices h ereu n der in a ccorda n ce with th e a pp lica b le p rovis ion s of th e Gen era l Provis ion s , s u b ject to th e followin g lim ita t ion s m a de in res pect th ereto:

A. Tota l dolla r fu n ds a va ila b le for pa ym en t a n d a llot ted to th is s u bcon tra ct for per iod _________ th rou gh ______. See th e cla u s e of th e Gen era l Provis ion s en t it led Su bcon t ra ctor ’s bu dget a ppen ded h ereto a s At ta ch m en t _____. $_____________ B. Es t im a ted a dd it ion a l fu n ds wh ich m a y be p rovided , if fu n ds a re a va ila b le. See th e cla u s e of Gen era l Provis ion s en t it led “Lim ita t ion of Fu n ds ” a n d th e Su bcon t ra ctor ’s bu dget a ppen ded h ereto a s At ta ch m en t ____. $_____________ Tota l Es t im a ted Cos ts $_____________

ARTICLE VI - In d ep en d en t Con t r a c t or Su bcon tra ctor , a ct in g a s a n in depen den t con t ra ctor a n d n ot a s a n a gen t of Pen n Sta te, is willin g to per form s a id work u pon th e term s h erein a fter p rovided . Pen n Sta te s h a ll n ot m a in ta in , a n d s h a ll n ot be requ ired to m a in ta in , a n y d irect con t rol over th e m ea n s or m a n n er by wh ich th e Su bcon t ra ctor per form s th e ob liga t ion s con ta in ed in th e Sta tem en t of Work or a n y revis ion s th ereof. ARTICLE VII - Recor d Ret en t ion All per t in en t records a n d books of a ccou n ts rela ted to th is s u bcon tr a ct s h a ll be reta in ed for a per iod of th ree (3 ) yea rs a fter th e con clu s ion of th e s u bcon tra ct . Records rela t in g to a n y lit iga t ion or cla im a r is in g ou t of th e per form a n ce of th is a greem en t , or cos ts a n d expen s es of th is a greem en t to wh ich

excep t ion h a s been ta ken a s a res u lt of a u d it a n d / or in s pect ion , s h a ll be reta in ed by th e Su bcon t ra ctor u n t il s u ch lit iga t ion , cla im or excep t ion h a s been res olved . ARTICLE VIII - Righ t s in Da t a a n d Ma t er ia ls (Us e wh en pr im e s pon s or is th e Federa l Gov’t .) (Us e of th is cla u s e m u s t be con s is ten t with p r im e a greem en t p rovis ion s ) Th e Su bcon tra ctor h olds a ll r igh ts , t it le a n d in teres t in th e da ta a n d works it crea tes in th e per form a n ce of th is Agreem en t . Su bcon t ra ctor h ereby gra n ts to Pen n Sta te a n ir revoca b le, wor ld -wide, roya lty-free, n on -exclu s ive licen s e to a ll da ta collected a n d copyr igh ted m a ter ia l, in clu d in g com pu ter p rogra m s , delivered or developed u n der th is Agreem en t , for th e pu rpos e of edu ca t ion a n d res ea rch or to th e exten t requ ired to m eet Pen n Sta te’s ob liga t ion s u n der th e Pr im e Agreem en t . Su bcon tra ctor h ereby gra n ts to th e Govern m en t a n ir revoca b le, wor ld -wide, roya lty-free, n on -exclu s ive licen s e to reprodu ce, t ra n s la te, pu b lis h , u s e a n d d is pos e of, a n d to a u th or ize oth ers to do s o, a ll da ta collected , copyr igh ted m a ter ia ls a n d com pu ter s oftwa re developed u n der th is a greem en t for Federa l pu rpos es on ly. As u s ed in th is cla u s e, da ta collected m ea n s th e or igin a l records of s cien t ific a n d tech n ica l da ta collected du r in g th e per form a n ce of th e work by th e Pr in cipa l In ves t iga tor or oth er pers on s work in g on th e p roject . Da ta collected in clu des , bu t is n ot lim ited to, n otebooks , d ra win gs , lis t s , s pecifica t ion s , a n d com pu ta t ion s . ARTICLE IX - Au d i t s a n d Au d i t Rep or t s (for u s e with a ll dom es t ic u n ivers it ies a n d n on -profit s ) Su bcon t ra ctor a ckn owledges it is s u b ject to OMB Circu la r A-133 (Au dits of S ta tes , Loca l Govern m en ts , a n d Non -Profit Orga n iza t ion s ) if it expen ds $500 ,000 or m ore in federa l a wa rds du r in g it s fis ca l yea r , a n d cer t ifies it is in com plia n ce with th e a u d it requ irem en ts of th e Circu la r . Su bcon t ra ctor a grees to h a ve a s in gle a u d it m a de in a ccorda n ce with Circu la r A-133 if it expen ds $500 ,000 or m ore in federa l a wa rds du r in g it s fis ca l yea r , excep t if it elects to h a ve a p rogra m -s pecific a u d it con du cted . Su bcon tra ctor m a y elect to h a ve a p rogra m -s pecific a u d it con du cted if it expen ds federa l a wa rds on ly u n der on e federa l p rogra m a n d th e p rogra m ’s la ws , regu la t ion s , or gra n t a greem en ts do n ot requ ire a fin a n cia l s ta tem en t a u d it . Su bcon t ra ctor a grees to s u bm it wr it ten n ot ifica t ion to Pen n Sta te p rom pt ly followin g com plet ion of th e a u d it . Th e wr it ten n ot ifica t ion m u s t con firm th a t a n a u d it of th e Su bcon tra ctor wa s con du cted in a ccorda n ce with Circu la r A-133 (in clu d in g th e per iod covered by th e a u d it a n d th e n a m e, a m ou n t , a n d CFDA n u m ber of th e Federa l a wa rd(s ) p rovided by Pen n Sta te); th e s ch edu le of fin d in gs a n d qu es t ion ed cos ts d is clos ed n o a u d it fin d in gs rela t ive to th e Federa l a wa rd(s ) th a t Pen n Sta te p rovided ; a n d , th e s u m m a ry s ch edu le of p r ior a u d it fin d in gs d id n ot repor t on th e s ta tu s of a n y a u d it fin d in gs rela t in g to th e Federa l a wa rd(s ) th a t Pen n Sta te p rovided . Su bcon t ra ctor a grees it will s u bm it on e copy of th e repor t in g pa cka ge des cr ibed in Circu la r A-133 to Pen n Sta te wh en th e “s ch edu le of a u d it fin d in gs a n d qu es t ion ed cos ts ” d is clos es fin d in gs , or th e “s u m m a ry s ch edu le of p r ior a u d it fin d in gs ” repor ts fin d in gs rela ted to Pen n Sta te. Su bcon t ra ctor will in form Pen n Sta te of th e cor rect ive a ct ion th a t h a s been or will be ta ken for a u d it fin d in gs rela ted to Pen n Sta te. In a dd it ion , Su bcon tra ctor will im m edia tely in form Pen n Sta te of m a ter ia l opera t ion s wea kn es s es d is clos ed in a u d it s per form ed a fter execu t ion of th is s u bcon t ra ct . Su bcon tra ctor u n ders ta n ds th a t if, in th e op in ion of Pen n Sta te a n d / or Govern m en t , it fa ils to com ply with th e a u d it requ irem en ts , a ppropr ia te s a n ct ion s m a y be im pos ed , in clu d in g, bu t n ot lim ited to, th os e in Circu la r A-133 , Sect ion .225 . Su bcon t ra ctor cer t ifies th a t a n y pen a lt ies or expen ditu re d is a llowa n ces im pos ed on Pen n Sta te res u lt in g from in s ta n ces of n on -com plia n ce with federa l la ws a n d regu la t ion s will be reim bu rs ed by Su bcon t ra ctor . Su bcon tra ctor a grees to s u bm it wr it ten n ot ifica t ion a n d th e repor t in g pa cka ge (if a ppropr ia te) to :

Mich elle Ku h n , Su bcon t ra ct in g Coord in a tor Office of Spon s ored Progra m s Th e Pen n s ylva n ia Sta te Un ivers ity 110 Tech n ology Cen ter Bu ild in g Un ivers ity Pa rk , PA 16802-7000

Su bcon tra ctor a ckn owledges if it expen ds les s th a n $500 ,000 a yea r in federa l a wa rds , it is exem pt from th e a u d it requ irem en ts of Circu la r A-133 for th a t yea r . However , records m u s t be a va ila b le for review or a u d it a s requ es ted by th e a u th or ized officia l of th e federa l a gen cy, Pen n Sta te, a n d Gen era l Accou n t in g Officer (GAO). In a dd it ion , Su bcon tra ctor a ckn owledges th a t Circu la r A-133 n eith er lim its n or con s t ra in s th e a u th or ity of federa l a gen cies , In s pectors Gen era l, or GAO to con du ct or a r ra n ge for a dd it ion a l a u d it s . ARTICLE X - Rep or t s Dis t r ibu t ion Du r in g th e per form a n ce of th is s u bcon tra ct , a s m a y be exten ded from t im e to t im e, th e Su bcon tra ctor s h a ll be res pon s ib le for s u bm it t in g repor ts in a ccorda n ce with Ar t icle II a n d a n y oth er a r t icle of th is s u bcon t ra ct requ ir in g repor ts to th e in d ividu a ls iden t ified in th e "Addres s es for Repor ts Dis t r ibu t ion " a ppen ded h ereto a s At ta ch m en t IV. ARTICLE XI - Pu bl ic i t y No pu blicity m a t ter h a vin g or con ta in in g a n y referen ce to Pen n Sta te, or in wh ich th e n a m e of Pen n Sta te is m en t ion ed , s h a ll be m a de u s e of by th e Su bcon tra ctor u n t il wr it ten a pprova l h a s fir s t been ob ta in ed from Pen n Sta te. ARTICLE XII - Ter m in a t ion A. Th is s u bcon tra ct m a y be term in a ted by eith er pa r ty h ereto by givin g wr it ten n ot ice to th e oth er pa r ty th ir ty (30) da ys in a dva n ce of a s pecified da te of term in a t ion , or in a ccorda n ce with th e p r im e a greem en t . In th e even t of a con flict , th e term s of th e p r im e a greem en t s h a ll govern . B. Upon receip t of s u ch n ot ice from Pen n Sta te, th e Su bcon t ra ctor s h a ll ta ke a ll n eces s a ry a ct ion to ca n cel ou ts ta n d in g pu rch a s e orders a n d oth er com m itm en ts rela t in g to th e work u n der th is a greem en t , a n d s h a ll exercis e rea s on a b le d iligen ce to ca n cel or red irect com m itm en ts for pers on a l s ervices to it s oth er a ct ivit ies a n d opera t ion s . C. Pen n Sta te s h a ll r em a in lia b le for a ll cos ts in cu r red u n der th is s u bcon t ra ct , in clu d in g a n y of th e a bove m en t ion ed com m itm en ts en tered in to by th e Su bcon t ra ctor in good fa ith p r ior to th e receip t of th e term in a t ion n ot ice. Upon pa ym en t of s u ch cos ts , Pen n Sta te s h a ll be en t it led to, a n d th e Su bcon t ra ctor a grees to deliver , th e in form a t ion a n d item s wh ich , if th e s u bcon t ra ct h a d been com pleted , wou ld h a ve been requ ired to be fu rn is h ed to Pen n Sta te, s u ch in form a t ion a n d item s to in clu de, bu t n ot be lim ited to, pa r t ia lly com pleted p la n s , d ra win gs , da ta , docu m en ts , s u rveys , m a ps , repor ts a n d m odels . D. In th e even t th a t Su bcon t ra ctor s h a ll com m it a n y brea ch of or defa u lt in a n y of th e term s or con dit ion s of th is s u bcon tra ct , a n d a ls o s h a ll fa il to rem edy s u ch defa u lt or b rea ch with in n in ety (90) da ys a fter receip t of wr it ten n ot ice th ereof from Pen n Sta te, Pen n Sta te m a y, a t it s op t ion a n d in a dd it ion to a n y oth er rem edies wh ich it m a y h a ve a t la w or in equ ity, term in a te th is s u bcon tra ct by s en d in g n ot ice of term in a t ion in wr it in g to th e Su bcon tra ctor to s u ch effect , a n d s u ch term in a t ion s h a ll be effect ive a s of th e da te of th e receip t of s u ch n ot ice.

ARTICLE XIII - Civi l Righ t s a n d Non d is cr im in a t ion Su bcon tra ctor cer t ifies th a t it h a s a n a ct ive p rogra m for com plia n ce with a ll a pp lica b le s ta te a n d federa l regu la t ion s , execu t ive orders a n d legis la t ion con cern in g n on -d is cr im in a t ion , equ a l oppor tu n ity, or a ffirm a t ive a ct ion , a n d th a t , wh erever requ ired , va lid a s s u ra n ces of com plia n ce a re on file with th e cogn iza n t en forcem en t a gen cy. In th e even t of a determ in a t ion of n on -com plia n ce, th is s u bcon t ra ct m a y be term in a ted in wh ole or in pa r t a n d Su bcon t ra ctor m a y be decla red in eligib le for fu r th er s u bcon t ra cts with Pen n Sta te. Wh erever a pp lica b le, th e a bove s ta tem en t of cer t ifica t ion in clu des , bu t is n ot n eces s a r ily lim ited to, th e followin g s pecific a cts : • Tit le VI of th e Civil Righ ts Act of 1964 • Execu t ive Order 11246 , Pa r t II, Su b-pa r t B, Sect ion 202 , pa ra gra ph s 1 -6 . Su bcon t ra ctor fu r th er

a grees to in clu de th e text of Sect ion 202 in a n y s u bcon tra ct en tered in to pu rs u a n t to th is s u bcon t ra ct .

• Tit le VII of th e Civil Righ ts Act of 1964 a s a m en ded by th e EEO Act of 1972 . • Sect ion 504 of th e Reh a bilita t ion Act of 1973 • Th e Age Dis cr im in a t ion Act of 1975 , a s a m en ded • Affirm a t ive Act ion Obliga t ion s of Con tra ctors a n d Su bcon t ra ctors for Dis a b led Vetera n s a n d

Vetera n s of th e Vietn a m Era , Su b-pa r t A, Pa ra gra ph 60-250 .5 . Su bcon tra ctor fu r th er a grees to in corpora te th is s ect ion by referen ce in to a n y s u bcon t ra ct of $10 ,000 or m ore en tered in to pu rs u a n t to th is s u bcon t ra ct .

• Tit le IX of th e High er Edu ca t ion Act of 1972 ARTICLE XIV - In d em n ifica t ion Su bcon tra ctor s h a ll h old Pen n Sta te h a rm les s from a n d s h a ll in dem n ify Pen n Sta te for a n y a n d a ll cla im s , dem a n ds , a n d a ct ion s ba s ed u pon or a r is in g ou t of a n y s ervices per form ed by th e Su bcon tra ctor or it s em ployees or a gen ts u n der th is s u bcon t ra ct , a n d s h a ll defen d a n y a n d a ll cla im s or dem a n ds . Th e Su bcon tra ctor fu r th er a grees th a t th e Su bcon tra ctor 's s ta n da rd lia b ility in s u ra n ce policies p rotect , or s h a ll be en dors ed to p rotect , Pen n Sta te from cla im s of bod ily in ju ry a n d of p roper ty da m a ge a r is in g ou t of a n y s ervices per form ed by th e Su bcon tra ctor or it s em ployees or a gen ts u n der th is s u bcon tra ct . ARTICLE XV – S c ien t i fic Mis con d u ct (For u s e wit h NIH s u bc on t r a c t s ) Th e Su bcon t ra ctor a grees with th e a s s u ra n ces con ta in ed in At ta ch m en t _____ a n d a grees to be bou n d by th es e a s s u ra n ces . Th e term s "Mis con du ct ," "Mis con du ct in Scien ce," or "Scien t ific Mis con du ct ," m ea n s , th e fa br ica t ion , fa ls ifica t ion , p la gia r is m , or oth er p ra ct ices th a t s er iou s ly devia te from th os e th a t a re com m on ly a ccep ted with in th e s cien t ific com m u n ity for p ropos in g, con du ct in g, or repor t in g res ea rch . It does n ot in clu de h on es t er ror or h on es t d ifferen ces in in terpreta t ion s or ju dgm en ts of da ta . (42 CFR Pa r t 50 , Su bpa r t A) ARTICLE XVI - Gover n in g La w s Th is s u bcon tra ct s h a ll be govern ed by a n d con s t ru ed in a ccorda n ce with th e la ws of th e Com m on wea lth of Pen n s ylva n ia . (Us e Dis pu tes . Us e Arb it ra t ion a s a ltern a t ive) ARTICLE XVII – Dis p u t es

An y a n d a ll cla im s , d is pu tes or con t rovers ies a r is in g u n der , ou t of, or in con n ect ion with th is Agreem en t , wh ich th e pa r t ies s h a ll be u n a b le to res olve with in s ixty (60) da ys , s h a ll be m edia ted in good fa ith . Th e pa r ty ra is in g s u ch d is pu te s h a ll p rom pt ly a dvis e th e oth er pa r ty of s u ch cla im , d is pu te or con t rovers y in a wr it in g wh ich des cr ibes in rea s on a b le deta il th e n a tu re of s u ch d is pu te. By n ot la ter th a n five (5 ) bu s in es s da ys a fter th e recip ien t h a s received s u ch n ot ice of d is pu te, ea ch pa r ty s h a ll h a ve s elected for it s elf a repres en ta t ive wh o s h a ll h a ve th e a u th or ity to b in d s u ch pa r ty, a n d s h a ll a dd it ion a lly h a ve a dvis ed th e oth er pa r ty in wr it in g of th e n a m e a n d t it le of s u ch repres en ta t ive. By n ot la ter th a n ten (10) bu s in es s da ys a fter th e da te of s u ch n ot ice of d is pu te, th e pa r ty a ga in s t wh om th e d is pu te s h a ll be ra is ed s h a ll s elect a m edia t ion firm in Pen n s ylva n ia a n d s u ch repres en ta t ives s h a ll s ch edu le a da te with s u ch firm for a m edia t ion h ea r in g n ot to exceed on e (1 ) da y in len gth , a n d les s wh ere a pp lica b le. Th e pa r t ies s h a ll en ter in to good fa ith m edia t ion a n d s h a ll s h a re th e cos ts equ a lly. If th e repres en ta t ives of th e pa r t ies h a ve n ot been a b le to res olve th e d is pu te with in fifteen (15) bu s in es s da ys a fter s u ch m edia t ion h ea r in g, th e pa r t ies s h a ll h a ve th e r igh t to pu rs u e a n y oth er rem edies lega lly a va ila b le to res olve s u ch d is pu te in eith er th e Cou r ts of th e Com m on Plea s of Cen t re Cou n ty of Pen n s ylva n ia or in th e Un ited Sta tes Dis t r ict Cou r t for th e Middle Dis t r ict of Pen n s ylva n ia , to wh os e ju r is d ict ion for s u ch pu rpos es Pen n Sta te a n d Su bcon t ra ctor ea ch h ereby ir revoca b ly con s en ts a n d s u bm its . Notwith s ta n d in g th e foregoin g, n oth in g in th is cla u s e s h a ll be con s t ru ed to wa ive a n y r igh ts or t im ely per form a n ce of a n y ob liga t ion s exis t in g u n der th is Res ea rch Agreem en t . OR Ar bi t r a t ion A. Bin d in g Arbit r a t ion . All con t rovers ies a n d / or d is pu tes a r is in g ou t of th is s u bcon tra ct s h a ll be decided by a pa n el of th ree (3 ) a rb it ra tors . Wr it ten n ot ice of a n y d is pu te s h a ll be given by th e a ggr ieved pa r ty, clea r ly s pecifyin g th e n a tu re of th e d is pu te a n d th e relief requ es ted , in clu d in g th e pa ra gra ph of th is s u bcon tra ct in qu es t ion , if a n y. If th e d is pu te ca n n ot be a m ica b ly res olved (eviden ced by wr it in g s ign ed by both pa r t ies ) with in th ir ty (30) da ys of s u ch n ot ice, eith er pa r ty m a y s erve th e oth er with a wr it ten dem a n d for a rb it ra t ion pu rs u a n t to th is Ar t icle. B. Proc e d u re . With in fifteen (15) da ys of a dem a n d for a rb it ra t ion pu rs u a n t to Pa ra gra ph A, th e pa r t ies s h a ll ea ch s elect on e a rb it ra tor of th eir ch oice, a n d th e two a rb it ra tor s s o s elected s h a ll ch oos e th e th ird a rb it ra tor , wh o s h a ll s erve a s th e ch a irpers on of th e pa n el. Ea ch pa r ty s h a ll be res pon s ib le for th e com pen s a t ion of th e a rb it ra tor of th eir ch oice, a n d th e cos t of th e th ird a rb it ra tor s h a ll be equ a lly s h a red by th e pa r t ies . All p re-h ea r in g, h ea r in g, a n d pos t -h ea r in g p rocedu res , in clu d in g th os e for Dis clos u re a n d Ch a llen ge, s h a ll be govern ed by th e Com m ercia l Arb it ra t ion Ru les of th e Am er ica n Arb it ra t ion As s ocia t ion th en in effect , excep t a s m odified in th is s u bcon t ra ct . Un les s oth erwis e a greed in wr it in g by th e pa r t ies , th e s ites of th e a rb it ra t ion p roceed in gs pu rs u a n t to th is Ar t icle s h a ll be determ in ed by th e a rb it ra tors , s a id decis ion to be ba s ed u pon th e con ven ien ce of th e s ites to a ll pa r t ies , a n d to be m a de with in ten (10) da ys of fin a l em pa n elm en t th ereof. Th e a rb it ra tors s h a ll be bou n d to m a ke s pecific fin d in gs of fa ct a n d rea ch con clu s ion s of la w, ba s ed u pon th e s u bm is s ion s a n d eviden ce of th e pa r t ies , a n d s h a ll is s u e a wr it ten decis ion exp la in in g th e ba s is for th e decis ion a n d a wa rd . C. Cou r t Ac t ion s . Du r in g th e pen den cy of a n y proceed in g u n der Sect ion A or B, a bove, n eith er pa r ty will com m en ce a n y lit iga t ion rela t in g to a n y d is pu te u n der th is s u bcon t ra ct a n d a n y lit iga t ion com m en ced pr ior to com m en cem en t of a n y proceed in g u n der Sect ion A or B, a bove, s h a ll be s ta yed pen din g th e ou tcom e th ereof. Th e pa r t ies a gree to fu lly a b ide by th e term s of a n y a rb it ra t ion a wa rd h ereu n der a s fin a l a n d b in d in g. J u dgm en t u pon a n y a wa rd m a y be en tered a n d en forced by eith er pa r ty in a n y cou r t of com peten t ju r is d ict ion . D. Con t in u e d Pe r form a n c e . Du r in g th e pen den cy of a n y proceed in g u n der Sect ion A or B, a bove, th e

Su bcon t ra ctor fu r th er a grees to d iligen t ly p roceed with th e per form a n ce of th is s u bcon t ra ct .

ARTICLE XVIII - As s ign m en t a n d S u bcon t r a c t in g Su bcon tra ctor s h a ll n ot a s s ign , t ra n s fer or s u bcon tra ct it s in teres t or ob liga t ion s h ereu n der with ou t th e wr it ten con s en t of Pen n Sta te. ARTICLE XIX - S u p er s ed u r e Th is s u bcon t ra ct s u pers edes a n d rep la ces a n y previou s a r ra n gem en ts , ora l or wr it ten , between th e pa r t ies h ereto per ta in in g to th is s u bcon t ra ct . ARTICLE XX - Ch a n ges Th e con dit ion s of th is s u bcon t ra ct m a y be ch a n ged a t a n y t im e by m u tu a l a greem en t . Sa id ch a n ges s h a ll be in th e form of a du ly execu ted a m en dm en t to th is s u bcon t ra ct . ARTICLE XXI - Review of Hu m a n S u bjec t s in Res ea r ch Pr ojec t s (Us e on ly for NIH Pr im e Awa rds ) Th e Su bcon t ra ctor a s s u res th a t a dequ a te s a fegu a rds s h a ll be ta ken wh en ever u s in g h u m a n s u b jects in res ea rch p rojects a n d a n in s t itu t ion a l review com m it tee com pos ed of s u fficien t m em bers with va ryin g ba ckgrou n ds to a s s u re com plete a n d a dequ a te review of p rojects in volvin g th e u s e of h u m a n s u b jects h a s reviewed a n d a pproved th e p rojects . Th e Su bcon t ra ctor will a b ide by a ll a pp lica b le p rovis ion s of th e U.S. Depa r tm en t of Hea lth a n d Hu m a n Services rega rd in g th e u s e of h u m a n s u b jects . In th e even t h u m a n s u b jects a re requ ired u n der th is s u bcon tra ct a n d / or s u bs equ en t a m en dm en ts , th e Su bcon tra ctor s h a ll forwa rd to Pen n Sta te’s Con tra ct in g Office it s m os t recen t in s t itu t ion a l review com m it tee wr it ten a pprova l. If th is Agreem en t is fu n ded by th e Na t ion a l In s t itu tes of Hea lth (NIH), th e Su bcon tra ctor a s s u res , by s ign in g th is Agreem en t , th a t a ll Su bcon t ra ctor ’s pers on n el wh o a re res pon s ib le for th e des ign a n d con du ct of p rojects in volvin g h u m a n res ea rch pa r t icipa n ts h a ve s u cces s fu lly com pleted th eir in s t itu t ion a l t ra in in g in a ccorda n ce with th e NIH Gu ide, Not ice OD-00-039 . ARTICLE XXII - Review of An im a l Welfa r e in Res ea r ch Pr ojec t s Th e res pon s ib ility for th e h u m a n e ca re a n d t rea tm en t of la bora tory a n im a ls u s ed in a n y res ea rch p roject s u ppor ted u n der th is s u bcon t ra ct res ts with th e Su bcon t ra ctor . Th e Su bcon t ra ctor s h a ll com ply with th e An im a l Welfa re Act (Pu b . L. No. 89 -544 , 1996 , a s a m en ded , Pu b . L. No. 91-579 , Pu b . L. No. 94-279 , a n d Pu b . l. No. 99 -198 , 7 U.S.C. 2131 et s eq.) a n d th e regu la t ion s p rom u lga ted th ereu n der by th e Secreta ry of Agr icu ltu re in 9 CFR Pa r ts 1 , 2 , 3 a n d 4 . Th e Su bcon t ra ctor h ereby cer t ifies th a t th e p roject is in com plia n ce with th e An im a l Welfa re Act of 1966 a n d 9 CFR Su bch a pter A (La bora tory An im a ls ), a s a m en ded; a n d is reviewed a n d a pproved by th e In s t itu t ion a l An im a l Ca re a n d Us e Com m it tee. In th e even t a n im a l s u b jects a re requ ired u n der th is s u bcon tra ct a n d / or s u bs equ en t a m en dm en ts , th e Su bcon t ra ctor s h a ll forwa rd to Pen n Sta te’s Con tra ct in g Office it s m os t recen t in s t itu t ion a l review com m it tee wr it ten a pprova l. ARTICLE XXIII - Pen n S t a t e Rep r es en t a t ion Ma t ter s con cern in g com plia n ce rela t ive to per form a n ce of th is s u bcon t ra ct s h ou ld be d irected to Pen n Sta te's Project Director a t th e followin g a ddres s :

Dr . ____________________ Project Director Th e Pen n s ylva n ia Sta te Un ivers ity

__________________________ Un ivers ity Pa rk , PA 16802 Teleph on e: (814) _____________ Fa x: (814) __________________ Em a il: _____________________

Ma t ter s con cern in g th e d irect ion or n egot ia t ion of a n y ch a n ges in th e term s , con dit ion s or a m ou n ts cited in th is s u bcon tra ct s h ou ld be d irected to Pen n Sta te's Con tra ct in g Office, or h is du ly a u th or ized repres en ta t ive, a t th e followin g a ddres s :

Mr . Da vid Rich a rds on , As s ocia te Vice Pres iden t for Res ea rch a n d Director of Spon s ored Progra m s

As repres en ted by:

(You r Na m e) ___________________ Negot ia tor Office of Spon s ored Progra m s Th e Pen n s ylva n ia Sta te Un ivers ity 110 Tech n ology Cen ter Bu ild in g Un ivers ity Pa rk , PA 16802 Teleph on e: (814) 86________ Fa x: (814) 86__________ E-m a il: ___________________

ARTICLE XXIV - Clos eou t Requ i r em en t s Th e followin g item s , a ppen ded h ereto a s At ta ch m en t ___, a re requ ired for Su bcon tra ct Clos eou t a n d s h a ll be s u bm it ted a lon g with a Fin a l Tech n ica l Repor t , if a pp lica b le, a n d a Fin a l S ta tem en t of Cos ts In cu r red or fin a l in voice item izin g cu m u la t ive cos ts to th e in d ividu a ls iden t ified in At ta ch m en t ____ n ot la ter th a n s ixty (60) da ys a fter s u bcon tra ct en d in g da te:

• Su bcon t ra ctor 's Relea s e • Su bcon tra ctor 's As s ign m en t of Refu n ds , Reba tes , Cred it s a n d Oth er Am ou n ts • In ven tory of Proper ty • (Pick On e)Repor t of In ven t ion s a n d Su bcon t ra cts or Fin a l NASA Gra n tee

Su bcon t ra ctor New Tech n ology Su m m a ry Repor t • A-133 Cer t ifica t ion

Pa ym en t of Fin a l In voice s h a ll be with h eld pen din g receip t a n d a ccep ta n ce of a ll Clos eou t Docu m en ts . ARTICLE XXV - Con fl ic t of In t e r es t (For U. S . Govern m en t p r im e a greem en ts on ly) By s ign in g th is Agreem en t th e Su bcon t ra ctor cer t ifies th a t th e in s t itu t ion h a s a n a ct ive a n d en forced Con flict of In teres t policy wh ich com plies with th e Govern m en t’s gu idelin es . It a ls o cer t ifies th a t th e releva n t in ves t iga tor (s ) a re in com plia n ce with th e Su bcon t ra ctor ’s Con flict of In teres t policy. ARTICLE XXVI – Order of Precedence If any conflicts or discrepancies should arise in the terms and conditions of this subcontract, or the interpretation thereof, the order of precedence for resolution shall be: (a) Section A; (b) Section B; and Section C.

ARTICLE XXVII – New Technology Reports (For use with NASA prime agreements only. Include the required NASA forms, which may be found at http://wuro.wustl.edu/PoliciesProcedures/NASA%20Langley%20C-3043.pdf https://ntr.ndc.nasa.gov/nf1679.pdf) The Subcontractor shall submit to Penn State’s Contracting Office NASA Form 1679 “Disclosure of Invention and New Technology (Including Software)” for each discovery of new technology individually, at the time of its discovery. A copy of said form, with instructions, are contained in Attachment ___ of this subcontract. If this subcontract is a multi-year award, the Subcontractor shall submit to Penn State’s Contracting Office NASA Form C-3043 “NASA Grantee New Technology Summary Report” marked “interim”. ARTICLE XXVIII – Federal Funding Accountability and Transparency Act (FFATA) (for use ONLY when Prime Award was issued on or after October 1, 2010 by a Federal Sponsor. Include the required FFATA form as an attachment to this subcontract.) This subcontract is supported by federal funds and requires compliance with the Federal Funding Accountability and Transparency Act (FFATA or the Transparency Act). The purpose of the Transparency Act is to make information pertaining to the spending of federal funds available to the public. Reporting on Subcontractors is done by Penn State and must include information provided by the Subcontractor as captured in Attachment ___of this subcontract. Su bcon tra ctor s h a ll s u bm it th e com pleted FFATA form to Pen n Sta te’s Con tra ct in g Office. SECTION B Sp e c ia l Pr im e Agre e m e n t Provis ion s (Ch e c k On e ) Specia l Provis ion s a re n ot a pp lica b le. Specia l Provis ion s a re a pp lica b le. Plea s e refer to At ta ch m en t ____, a ppen ded h ereto. SECTION C Ge n e ra l Provis ion s a n d / or Ce r t ific a t ion s (Ch e c k On e ) Gen era l Provis ion s a n d Cer t ifica t ion s a re n ot a pp lica b le. Gen era l Provis ion s a n d / or Cer t ifica t ion s a re a pp lica b le. Plea s e refer to At ta ch m en t ____,

a ppen ded h ereto. IN WITNESS WHEREOF, the parties have caused these presents to be executed in duplicate as of the day and year first above written. By An Authorized Official of Penn State By An Authorized Official of Subcontractor Name: Name: Title:

Title: Date: Date:

ATTACHMENT III

STATEMENT OF EXPENDITURES

Su bcon tra ctor ’s Na m e:_____________________ In voice Per iod :________________________

Su bcon tra ct No.:_______________________ Awa rd Am ou n t :______________________

EXPENDITURES EXPENDITURES CATEGORY THIS PERIOD TO DATE Sa la r ies Tota l Sa la r ies Su pplies Com m u n ica tion Services Dom es tic Tra vel Pr in t in g & Copyin g “SAMPLE” Ca pita l Equ ipm en t Softwa re Fr in ge Ben efits Tota l Direct Cos ts In d irect Cos ts Tota l Cos ts Cos t Sh a r in g Tota l Cos ts Cer t ifica t ion

“I h ereby cer t ify th a t a ll pa ym en ts requ es ted a re for a ppropr ia te pu rpos es in a ccorda n ce with th e a greem en t s et for th in th e a pp lica t ion a n d a wa rd docu m en t.”

Sign a tu re: Da te:

ATTACHMENT IV

ADDRESSES FOR REPORTS DISTRIBUTION Repor t Ma il To Copy To Progres s Repor t 1 2 Note A Fin a l Repor t (Dra ft & Approved) 1 2 Note A Mon th ly In voices 3 Fin a l In voices 3 Su bcon t ra ctor 's Relea s e 2 Su bcon t ra ctor 's As s ign m en t of Refu n ds , Reba tes , 2 Cred it s a n d Oth er Am ou n ts In ven tory of Proper ty 2 (Pick On e) Repor t of In ven t ion s a n d Su bcon tra cts or 2 1 NASA New Tech n ology Su m m a ry Repor t / New Tech n ology Dis clos u re A-133 Cer t ifica t ion 2 1 . Dr . Project Director Th e Pen n s ylva n ia Sta te Un ivers ity Un ivers ity Pa rk , Pen n s ylva n ia 16802 Teleph on e (814) 86 2 . (You r Na m e) __________________, Con tra cts a n d Propos a ls Specia lis t Office of Spon s ored Progra m s Th e Pen n s ylva n ia Sta te Un ivers ity 110 Tech n ology Cen ter Bu ild in g Un ivers ity Pa rk , Pen n s ylva n ia 16802 Teleph on e (814) 86______ FAX 814-86_______ E-Ma il: ______________________ 3 . (Pick On e) College Con ta ct (from pa ym en t cla u s e)

Note A - The Subcontra ctor s ha ll provid e on ly a copy of the tra ns mitta l le tters for s a tis fying th is requ irement of the Reports Dis tribu tion .

ATTACHMENT V

CLOSEOUT DOCUMENTS

SUBCONTRACTOR'S RELEASE Prime Award No. ____________ Subcontract No. __________________

Pursuant to the terms of Subcontract No. ________________ and in consideration of the sum of ________________________________________ which has been or is to be paid under the said subcontract to ______________________ (hereinafter called the Subcontractor) or to its assignees, if any, the Subcontractor upon payment of the said sum by The Pennsylvania State University, University Park, Pennsylvania (hereinafter called the Contractor) does remise, release, and discharge the Contractor, its officers, agents and employees, of and from all liabilities, obligations, claims, and demands whatsoever under or arising from the said subcontract, except:

1. Specified claims in stated amounts or in estimated amounts where the amounts are not susceptible of exact statement by the Subcontractor, as follows:

2. Claims, together with reasonable expenses incidental thereto, based upon the liabilities of the Subcontractor to third parties arising out of the performance of the said subcontract, which are not known to the Subcontractor on the date of the execution of this release and of which the Subcontractor gives notice in writing to the Contractor within the period specified in the said subcontract.

3. Claims for reimbursement of costs (other than expenses of the Subcontractor by reason of

its indemnification of the Contractor against patent liability), including reasonable expenses incidental thereto, incurred by the Subcontractor under the provisions of the said subcontract relating to patents.

The Subcontractor agrees, in connection with patent matters and with claims which are not released as set forth above, that it will comply with all of the provisions of the said subcontract, including without limitation those provisions relating to notification to the Contractor and relating to the defense or prosecution of litigation. IN WITNESS WHEREOF, this release has been executed this _____ day of ___________, 20__. SUBCONTRACTOR_______________________________ By____________________________________________ Title___________________________________________

CERTIFICATE I, ___________________________________, certify that I am the ________________________ of the corporation named as Subcontractor in the foregoing release; that __________________________ who signed said release on behalf of the Subcontractor was then ______________________________ of said corporation; that said release was duly signed for and in behalf of said corporation by authority of its governing body and is within the scope of its corporate powers. ________________________________________________

SUBCONTRACTOR'S ASSIGNMENT OF REFUNDS, REBATES, CREDITS AND OTHER AMOUNTS

Prime Award No. _____________ Subcontract No. ____________________ Pursuant to the terms of the subcontract in consideration of the reimbursement of costs and payment of fee, as provided in the said subcontract and any assignment thereunder, the________________________ (hereinafter called the Subcontractor) does hereby: 1. Assign, transfer, set over and release to The Pennsylvania State University, University Park, Pennsylvania (hereinafter called the Contractor), all right, title and interest to all refunds, rebates, credits or other amounts (including interest thereon) arising out of the performance of the said subcontract, together with all the rights of action accrued or which may hereafter accrue thereunder. 2. Agree to take whatever action may be necessary to effect prompt collection of all refunds, rebates, credits or other amounts (including any interest thereon) due or which may become due, and to promptly forward to the Contractor checks (made payable to The Pennsylvania State University, University Park, Pennsylvania) for any proceeds so collected. The reasonable costs of any such action to effect collection shall constitute allowable costs when approved by the Contractor as stated in the said subcontract and may be applied to reduce any amount otherwise payable to the Contractor under the terms hereof. 3. Agree to cooperate fully with the Contractor as to any claim or suit in connection with refunds, rebates, credits or other amounts due (including any interest thereon); to execute any protest, pleading, application, power of attorney or other papers in connection therewith; and to permit the Contractor to represent it at any hearing, trial or other proceeding arising out of such claim or suit. IN WITNESS WHEREOF, this assignment has been executed this ____ day of _______________, 20___. Subcontractor____________________________________ By_____________________________________________ Title____________________________________________

CERTIFICATE I, ___________________________________, certify that I am the ________________________ of the corporation named as Subcontractor in the foregoing release; that __________________________ who signed said release on behalf of the Subcontractor was then ______________________________ of said corporation; that said release was duly signed for and in behalf of said corporation by authority of its governing body and is within the scope of its corporate powers. ________________________________________________

SUBCONTRACTOR A-133 CERTIFICATION

Subcontractor Name: Subcontract No.: The undersigned, being an authorized financial officer of the referenced Subcontractor, hereby certifies that: ____ The Subcontractor’s total Federal expenditures for fiscal year ending ___________do not exceed $500,000.00 a

fiscal year. The Subcontractor is exempt from Federal Audit requirements for the subcontract Period of Performance.

____ The Subcontractor has had an A-133 compliance audit for fiscal year ending ______________ and has not been

informed of any instances of non-compliance with federal laws and regulations that have a direct bearing on this subcontract. A COPY OF THE SUBCONTRACTOR’S WRITTEN NOTIFICATION AS PROMULGATED IN SUBPART C, SECTION .320(e)(2) OF OMB CIRCULAR A-133 IS ATTACHED.

____ The Subcontractor has had an A-133 compliance audit for fiscal year ending _____________ and has been informed

of instances of non-compliance with federal laws and regulations that have a direct bearing on this subcontract. COPIES OF THE SUBCONTRACTOR’S WRITTEN NOTIFICATION AND REPORTING PACKAGE AS PROMULGATED IN SUBPART C, SECTION .320(e)(1) AND (2) OF OMB CIRCULAR A-133 IS ATTACHED.

____ The Subcontractor has not yet completed an A-133 compliance audit for fiscal year ending _________. The audit is

to be completed by _______________. A COPY OF THE SUBCONTRACTOR’S WRITTEN NOTIFICATION AND, IF APPLICABLE, THE REPORTING PACKAGE WILL BE FORWARDED TO PENN STATE WHEN AVAILABLE.

_____________________________________ __________________________ Typed Name and Title Date _____________________________________ Signature

THE PENNSYLVANIA STATE UNIVERSITY

INVENTORY OF PROPERTY FOR

SUBCONTRACT NO. PRIME CONTRACT NO. FROM ___________________________ TO ______________________________ Please check whether property was acquired under the above referenced Subcontract. If property was acquired, please complete the requested information below. ______ NO Property was acquired under this Subcontract. ______ YES Property was acquired under this Subcontract. Please complete the information requested below. Description Manufacturer Model Number Serial Number Date Purchased Dollar Amount ___________________________________________ Signature _________________ ___________________________________________ Date Title

Updated 6/11/08

Attachment _ 

FEDERAL FUNDING ACCOUNTABILITY AND TRANSPARENCY ACT (FFATA) - SUBRECIPIENT DATA SHEET

Reporting Did the subrecipient’s gross income, from all sources in the previous tax year exceed $300,000? Yes ___ No___ If no, FFATA reporting of this subaward is not required. DUNS Number DUNS Number: Parent DUNS Number (if applicable): Principal Place of Performance (Please complete this section if primary performance site is different from subrecipient address indicated on Attachment 3A) City: State:

Zip + 4: Project Description Please provide a brief description of the work being performed by the Subrecipient:

Compensation of Officers Subrecipient must provide the names and total compensation of the five most highly compensated officers of the entity if: (i) the entity in the preceding fiscal year received—

(I) 80 percent or more of its annual gross revenues in Federal awards; and II) $25,000,000 or more in annual gross revenues from Federal awards: and

(ii) the public does not have access to information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchanges Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. Officer 1 Name:

Compensation:

Officer 2 Name:

Compensation:

Officer 3 Name:

Compensation:

Officer 4 Name:

Compensation:

Officer 5 Name:

Compensation:

If the Subrecipient does not meet the conditions listed above, then it must specifically affirm that the requirements of this clause are inapplicable to the Subrecipient:

By marking the following box, Subrecipient affirms they do not meet the conditions for reporting highly compensated officials.  

Office of Sponsored Programs 110 Technology Center Building University Park, PA 16802-7000

SUBCONTRACT CLEARANCE

Date: Prime Agreement

From: Original OSP No.

Re: Subcontract Number:

Subcontractor:

Sponsor:

Project Director(s):

Budget/Fund: / “Subcontractor Certifications” applicable, Yes or No? If yes, please note Attachment _________. RISK MANAGEMENT Standard University Clause - No review required. ______ Non-typical clause - Please review and sign below. ______ Non-typical Clause -___________________________ has previously reviewed this clause on

________________________________ and approved same.

______ Certificate of Insurance will be requested. _______________________________ _____________ Signature Date Log No.: 12/07

Standard Agreement under FNG02(A) Delegation Authority

OSP

The attached commits __$ for the period _ Recommend signature.

Negotiator

Comments:

Session ID: 7270117

SUBCONTRACTOR'S RELEASE Prime Award No. ____________ Subcontract No. __________________

Pursuant to the terms of Subcontract No. ________________ and in consideration of the sum of ________________________________________ which has been or is to be paid under the said subcontract to ______________________ (hereinafter called the Subcontractor) or to its assignees, if any, the Subcontractor upon payment of the said sum by The Pennsylvania State University, University Park, Pennsylvania (hereinafter called the Contractor) does remise, release, and discharge the Contractor, its officers, agents and employees, of and from all liabilities, obligations, claims, and demands whatsoever under or arising from the said subcontract, except:

1. Specified claims in stated amounts or in estimated amounts where the amounts are not susceptible of exact statement by the Subcontractor, as follows:

2. Claims, together with reasonable expenses incidental thereto, based upon the liabilities of the Subcontractor to third parties arising out of the performance of the said subcontract, which are not known to the Subcontractor on the date of the execution of this release and of which the Subcontractor gives notice in writing to the Contractor within the period specified in the said subcontract.

3. Claims for reimbursement of costs (other than expenses of the Subcontractor by reason of

its indemnification of the Contractor against patent liability), including reasonable expenses incidental thereto, incurred by the Subcontractor under the provisions of the said subcontract relating to patents.

The Subcontractor agrees, in connection with patent matters and with claims which are not released as set forth above, that it will comply with all of the provisions of the said subcontract, including without limitation those provisions relating to notification to the Contractor and relating to the defense or prosecution of litigation. IN WITNESS WHEREOF, this release has been executed this _____ day of ___________, 20__. SUBCONTRACTOR_______________________________ By____________________________________________ Title___________________________________________

CERTIFICATE I, ___________________________________, certify that I am the ________________________ of the corporation named as Subcontractor in the foregoing release; that __________________________ who signed said release on behalf of the Subcontractor was then ______________________________ of said corporation; that said release was duly signed for and in behalf of said corporation by authority of its governing body and is within the scope of its corporate powers. ________________________________________________

SUBCONTRACTOR'S ASSIGNMENT OF REFUNDS, REBATES, CREDITS AND OTHER AMOUNTS

Prime Award No. _____________ Subcontract No. ____________________ Pursuant to the terms of the subcontract in consideration of the reimbursement of costs and payment of fee, as provided in the said subcontract and any assignment thereunder, the________________________ (hereinafter called the Subcontractor) does hereby: 1. Assign, transfer, set over and release to The Pennsylvania State University, University Park, Pennsylvania (hereinafter called the Contractor), all right, title and interest to all refunds, rebates, credits or other amounts (including interest thereon) arising out of the performance of the said subcontract, together with all the rights of action accrued or which may hereafter accrue thereunder. 2. Agree to take whatever action may be necessary to effect prompt collection of all refunds, rebates, credits or other amounts (including any interest thereon) due or which may become due, and to promptly forward to the Contractor checks (made payable to The Pennsylvania State University, University Park, Pennsylvania) for any proceeds so collected. The reasonable costs of any such action to effect collection shall constitute allowable costs when approved by the Contractor as stated in the said subcontract and may be applied to reduce any amount otherwise payable to the Contractor under the terms hereof. 3. Agree to cooperate fully with the Contractor as to any claim or suit in connection with refunds, rebates, credits or other amounts due (including any interest thereon); to execute any protest, pleading, application, power of attorney or other papers in connection therewith; and to permit the Contractor to represent it at any hearing, trial or other proceeding arising out of such claim or suit. IN WITNESS WHEREOF, this assignment has been executed this ____ day of _______________, 20___. Subcontractor____________________________________ By_____________________________________________ Title____________________________________________

CERTIFICATE

I, ___________________________________, certify that I am the ________________________ of the corporation named as Subcontractor in the foregoing release; that __________________________ who signed said release on behalf of the Subcontractor was then ______________________________ of said corporation; that said release was duly signed for and in behalf of said corporation by authority of its governing body and is within the scope of its corporate powers. ________________________________________________

SUBCONTRACTOR A-133 CERTIFICATION

Subcontractor Name: Subcontract No.: The undersigned, being an authorized financial officer of the referenced Subcontractor, hereby certifies that: ____ The Subcontractor’s total Federal expenditures for fiscal year ending ___________do not exceed

$500,000.00 a fiscal year. The Subcontractor is exempt from Federal Audit requirements for the subcontract Period of Performance.

____ The Subcontractor has had an A-133 compliance audit for fiscal year ending ______________ and has not

been informed of any instances of non-compliance with federal laws and regulations that have a direct bearing on this subcontract. A COPY OF THE SUBCONTRACTOR’S WRITTEN NOTIFICATION AS PROMULGATED IN SUBPART C, SECTION .320(e)(2) OF OMB CIRCULAR A-133 IS ATTACHED.

____ The Subcontractor has had an A-133 compliance audit for fiscal year ending _____________ and has been

informed of instances of non-compliance with federal laws and regulations that have a direct bearing on this subcontract. COPIES OF THE SUBCONTRACTOR’S WRITTEN NOTIFICATION AND REPORTING PACKAGE AS PROMULGATED IN SUBPART C, SECTION .320(e)(1) AND (2) OF OMB CIRCULAR A-133 IS ATTACHED.

____ The Subcontractor has not yet completed an A-133 compliance audit for fiscal year ending _________.

The audit is to be completed by _______________. A COPY OF THE SUBCONTRACTOR’S WRITTEN NOTIFICATION AND, IF APPLICABLE, THE REPORTING PACKAGE WILL BE FORWARDED TO PENN STATE WHEN AVAILABLE.

_____________________________________ __________________________ Typed Name and Title Date _____________________________________ Signature

THE PENNSYLVANIA STATE UNIVERSITY

INVENTORY OF PROPERTY FOR

SUBCONTRACT NO. PRIME CONTRACT NO. FROM ___________________________ TO ______________________________ Please check whether property was acquired under the above referenced Subcontract. If property was acquired, please complete the requested information below. ______ NO Property was acquired under this Subcontract. ______ YES Property was acquired under this Subcontract. Please complete the information requested below. Description Manufacturer Model Number Serial Number Date Purchased Dollar Amount ___________________________________________ Signature _________________ ___________________________________________ Date Title

Updated 6/11/08

An Equal Opportunity University Updated 9/16/10

Unit Address: DATE: FROM: TO: Office of Sponsored Programs, Subcontract Administration SUBJ: Certification of Completion of Technical Performance on Subcontract No.

___________________ with (Subcontractor) under Prime Grant/Contract No. ____________________________________ from _________________________ (Sponsor).

1. The final invoice has been submitted by the Subcontractor.

2. Please certify, if appropriate, that you have received the final report and the Subcontractor has completed technical performance by acknowledging this fact in the space provided below.

The undersigned hereby certifies that technical performance is complete on the subject subcontract and that continued effort will not be required. ____________________________________________ ____________________ Project Director Date ____________________________________________ Signature

SUBCONTRACT CLOSEOUT CHECKLIST

Subcontractor: Subcontract No.: as Modified by Amendments Numbered through Period of Performance: through Date of Closeout Completion:

ACTION ITEMS Requested Received Accepted

Subcontractor’s Release

Subcontractor’s Assignment of Refunds, Rebates, Credits and Other Amounts

Subcontractor A-133 Audit

Inventory of Property

Report of Inventions and Subcontracts

Certification of Technical Completion

Price Revision

Lower-Tier Subcontracts Settled by Subcontractor

Interim and/or Disallowed Costs Settled

Indirect Cost Rate

Assist Audit Other (Specify):

Signature (sign only upon completion of all required actions) Date OSP, SA 8/93

PSSUB Closeout Desk Review Worksheet

Instructions found here: H:\PS SUBS\Closeout Information\Desk Review Worksheet Instructions

Questionnaire (Any answer with an asterisk requires further comments.)

1. Subrecipient Review

A. Has A-133 Audit Report or Audited Financial Statement been received? Yes No *

B. Are there any known systems deficiencies or Yes * No pending/recurring audit problems?

C. Have F&A rates been finalized? Yes No *

If yes, does Quick Closeout apply? Yes No

2. Subcontract Review

A. Funded Amount = ________________ (total project cost)

B. Cumulative Vouchered Amount: ________________ = ________________(total project costs) - _______________ (unspent funds)

C. Performance Period: _______________________ to _______________________

D. Are costs outside the performance period? Yes * No

E. Has Technical effort been accepted? Yes No *

F. Did subcontract require cost sharing? Yes No

G. Was the cost sharing requirement met and indicated on N/A Yes No *

final invoice?

H. Were all special cost provisions met? N/A ______ Yes No *

(i.e., level of effort, travel, equipment, etc.)

I. Any significant deviations of incurred costs from approved/ N/A ______ Yes * No *

negotiated budget (see Page 2 for comparison)(a.) If yes, were prior approvals/consents obtained as required? Yes No _______

J. Have all administrative reports/requirements been accepted? Yes No *

(see closeout checklist)

K. Is the final voucher complete and with proper related documents? Yes No *

L. Was the proper F&A rate(s) utilized? Yes No *

3. Comments:

4. Conclusions: Costs of _________________ are recommended as allowable.

Costs of _________________ are considered unallowable.

Reviewed by: __________________________________________________

Date: _________________

June 2011

COST ANALYSISComparison of Incurred Cost to Approved Budget

Approved IncurredApproved Budget* Cost Share Incurred Cost** Cost Share Variance*** Cost Share Variance****

Comments: Variances are within acceptable Limits? Yes ___ No ____

Other:

* Approved Budget - Initial cost submitted by subrecipient and approved and made a part of the subaward/subcontract. ** Incurred Cost -- Actual Total cumulative final costs incurred by Subrecipient.*** Variance - Difference between "incurred cost" and "approved costs"**** Cost Share Variance - Difference between "incurred cost share" and "approved cost share".

Salaries/Wages

Fringe Benefits

Tuition Remission

Materials & Supplies

Consultants

Equipment

Computer Costs

Travel

- Domestic

- Foreign

Subcontracts

Total Project Costs

Cost Element

Total Direct Costs

Indirect Costs

Publications

Other Direct Costs

1

PSSUB Closeout

Desk Review Worksheet (Questionnaire) INSTRUCTIONS

Upon receipt of Subrecipient’s final invoice, the College forwards a copy to OSP, along with a completed Certification of Completion of Technical Performance. The Sub Coordinator assigns the request for approval of release of final payment and/or closeout to the appropriate negotiator. As closeout documents are received, the forms are reviewed by the Sub Coordinator for completion. The Sub Coordinator shall follow-up, via telephone or e-mail, with the Subrecipient for delinquent closeout documents on a monthly basis. In the event all requested closing forms are not received from the Subrecipient, the Subcontract Coordinator/Negotiator shall determine if the requested closing papers are required for Administrative Closeout using the following criteria:

• Report of Inventions and Subcontracts: Per 37 CFR 401.14 proceed with closeout if DD882 is not received within two months after forwarding closing papers to the Subcontractor. (If in a subcontract, the DD882 is identified as a required document in Attachment IV, PSU is contractually obligated to receive the DD882 form from the Subcontractor.) Also reference 2.J.on page 2.

When required closeout documentation is received, the Sub Coordinator assigns to the appropriate Negotiator. The Negotiator completes the Subaward/Subcontract Closeout Checklist and the Desk Review Worksheet to close the subagreement. What follows are instructions for completing the Desk Review Worksheet:

Section 1. Subrecipient Review Items 1.A. and 1.B. are completed by the Sub Coordinator prior to Negotiator’s receipt of closeout file. Negotiator should not release final payment or close until any A-133/audited financial statements are received and any related concerns are resolved. 1.C. – Identify if F&A has been finalized to date (e.g., predetermined or fixed rates)

• If “N/A” or “Yes”, indicate as such. • If “No”, document in Comments section (bottom of worksheet) how closeout was

finalized in terms of F&A. For example, note “Rates still provisional but all funds spent and approved, as rate applies throughout entire project period”.

Section 2. Subagreement Review 2.A. – Total $$$ amount funded (includes basic award and any subsequent amendments). 2.B. – Actual total amount of costs incurred for entire project period.

2

2.C. - Start date of basic award through end date of last amendment, if any (XX/XX/XXXX – XX/XX/XXXX). 2.D. – Invoiced amount outside of period of performance identified in item 2.C. 2.E. – Certificate of Technical Completion comes from College and is signed by the PI. This certificate informs the negotiator that the subrecipient performed in accordance with their Scope of Work. 2.F. – Check basic subagreement and amendment budgets to see if cost sharing was identified. If so, check “Yes” and go to item 2.G. If no, check “No” and go to item 2.H. 2.G. – If cost sharing is required, verify approved cost sharing in Subrecipient budget against costs sharing shown on final invoice. NOTE: If cost sharing is committed in subagreement, cost sharing must be shown as part of the final invoice and the Negotiator needs to reconcile cost sharing as part of the Cost Analysis page of the Desk Review Worksheet. 2.H. – If Special Provisions apply (e.g. special reporting requirements or preapproval of subrecipient’s travel), “Yes” means provisions were met. “No” means provisions were not met and negotiator may need to pursue additional information from the College or Subrecipient. 2.I. – “Yes” means that significant deviations (as defined by prime or subagreement) were noted when performing the comparison of costs. Deviation should be documented in Comments section and how/if resolved. “No” means that no significant deviations in spending were noted. “N/A” means re-appropriation was allowable without restriction (e.g., FDP). 2.J. – (Also reference first paragraph on page 1 of Instructions) Review the administrative reporting requirements specified in the subagreement, in other words, what did we ask for? (Examples: A-133 certification, DD882, etc.) And, do we have what we need? If “Yes”, it is ok to proceed. If “No”, negotiator should work with Sub Coordinator (Michelle) to request reports and other required documents from the subrecipient. NOTE: We cannot withhold payment for reports not received unless specified as a requirement for payment in the actual subagreement (Per OMB A-110). Also, we cannot close out the subagreement until all required reports are received or current date is beyond 60 reporting period. However, we can release final payment upon completion of the cost analysis and technical release. 2.K. – Final Voucher = Final Cumulative Invoice, as received in accordance with Articles 2 & 3 of the basic Research Subaward Agreement (or Article 5 of the Penn State Subcontract). The final invoice will need to meet the specifications identified in these articles in order for the cost analysis to take place: 1. Must be marked “Final”; 2. Must show all actual cumulative costs

3

incurred for the entire project period, not just the period being invoiced, INLUDING COST SHARING; and 3. Must be signed and certified by an authorized representative. 2. L – See Section 1.C. - Rates may be provisional but may still apply. Verify F&A rate is in accordance with the subrecipient’s negotiated rate for the period covered by Subagreement and noted on invoice, and in accordance with what was proposed and approved by PSU. Negotiators should check PSSUB backup documents to verify rate(s) applied initially and with all subsequent amendment(s). See Quick Closeout procedure below. Section 3. Comments – Comments related to Sections 1 & 2 should be reflected here. Additional pages can be attached and kept with file, if necessary. Section 4. Conclusions – “Costs of $______ are recommended as allowable.” should be the total amount of approved costs paid. For example: If funded amount = $100K, but only $50K was spent (and cost analysis review was completed with verification of $50K spent), conclusions would be: “Costs of $50K are recommended as allowable. Costs of $0 are considered unallowable.” Note: The remaining $50K unspent is re-appropriated as required by the prime sponsor. “Reviewed by:” Negotiator’s name here, only when closeout is complete. NOTE 1: Negotiators can partially complete the forms for cost analysis review and release of final payment. Neither the Desk Review Worksheet or the Sub Closeout Checklist should be signed by the negotiator until both release of final payment and closeout are complete.

Quick Closeout:

When Subrecipient’s F&A rate is provisional throughout the period of the subagreement, and the final invoice for cumulative costs is less than the total funded amount, it is necessary to follow the quick closeout procedures prescribed under FAR 42.708 (https://www.acquisition.gov/far/html/Subpart%2042_7.html).

This means that you will need to receive verification, in writing, from the subrecipient, that the final invoice is, in fact, final and that the F&A rate(s) applied to the final cumulative invoice is/are final.

An Equal Opportunity University

Date: To: Memorandum to File, Research Accounting From: J. Hanold, Office of Sponsored Programs Subj: Closing Statement for Subcontract No.__________with ____________under Prime

Contract No.___________ awarded to The Pennsylvania State University by ___________ (OSP #________).

The subject subcontract provided for a research program entitled “__________” The awarded estimated cost was $________ with a period of performance from __________ through _____________. All provisions of the subcontract, including administrative and technical reporting requirements have been met.

The cumulative amount invoiced and claimed under this subcontract is $_____________with and unspent balance of $_______. An examination of the proposal and award documents has been made and compared to those costs claimed for reimbursement under the subcontract. No significant deviations in the cost elements were present and therefore, no exceptions are taken with any of the claimed costs. There are no known systems deficiencies or recurring audit problems with this subcontractor that we have been made aware. Any prior approvals, which may have been required, were obtained as needed.

Based upon final review, we have concluded that claimed costs are allowable and reasonable and are therefore considered allowable under the terms and conditions of the subject subcontract. This Closing Statement shall serve in lieu of a Subcontract Closeout Audit Report. ______________________________________ John W. Hanold Interim Director, Office of Sponsored Programs

cc: Subcontract File (OSP #_________)

OFFICE OF SPONSORED PROGRAMS John W. Hanold Interim Director, Office of Sponsored Programs

(814) 865-1372

FAX (814) 865-3377 E-MAIL: JHH6@.PSU.EDU

110 Technology Center

The Pennsylvania State University University Park PA 16802-7000