Working with Industry Workshop 2-16-17 - Purdue University · OCGP ‐Working with Industry 1 Working With Industry ... • Do not send materials to a company until you have a MTA

2/20/2017

OCGP ‐Working with Industry 1

Working With Industry

16 Feb 2017

E. Dan Hirleman

Chief Corporate and Global Partnerships Officer

Professor of Mechanical Engineering

HIGHER EDUCATION AT THE HIGHEST PROVEN VALUE

Purdue’s Strategic Plan

Industry Partnerships are Key

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Strategic Partnership Mission and Benefits

Mission:

Increase the impact, scale and sustainability of Purdue's corporate and global partnerships

Benefits:

• Focus on exceptional value to the company and Purdue

• Streamlined access to faculty, students, facilities, and resources

• Flexible approaches to IP and sponsored research agreements

FY2015 - $133M>1200 Projects

500 Companies500 Faculty PI

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Federal Other Industry/Foundations

Awards in M

illions

Sponsored Award Trends

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19%

17%

11%

10%

9%

3%

5%

6%

3%

Foundations and Other $134M

Other Fed<$41M & Foreign Govts., $4M

NSF, $68M

DHHS (NIH), $42 M

PRF/PU, $14 M

DoD, $38 M

State/Local Govts, $21 MDOE, $14 M

USDA, $25 M

Private Sector $56M14%

FY14 Awards System‐wide:$389 Million

FY15 Awards System‐wide:$401 Million

Awards by Agency

#1: Intensify Select Corporate

Relationships

#3: Integrate Vital Data

Informatics(PP Platform)

#2: Broaden Faculty

Engagement

Mission: Increase Impact Scale, & SustainabilityofCorporatePartnerships

Purdue Partners

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Strategic Partnership

Partnership

Niche Connections

Preferred Supplier

Entrepreneurial Open Season

Comprehensive Institutional–levelengagement, long-term horizon,

joint strategic planning

Transactional,one‐off interactions

and projects

Engagement to meet narrow clustered needs

HR‐driven relationshipsprimarily for recruiting, testing

Broader engagement,focus on mutual benefits

Increasingly Strategic En

gagement

Strategic Partnership Focus

Acknowledgement :P.J. Hommert, Sandia

OCGP works closely with Corporations and Faculty to Address their Shared Goals and Challenges:

Research Goals• Long-term relationships (and/or Master Agreements) streamline

research.• Multi-disciplinary approaches are highly valued.

Recruitment and Communication• Student internship / employment opportunities a priority.• Improved methods for communicating is a priority.

Use of Time & Resources• It is a priority for corporations and faculty that time and

resources are used wisely. • Coordinating the business and academic calendar is a challenge.

Working Modes

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Sampling of Recent Corporate Visits

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#3: INTIGRATE VITAL DATA ANALYTICSWe will enhance Purdue’s predictive analytics, agility, accessibilityand other corporate capabilities through technology integration.

https://tableau.itap.purdue.edu/#/views/PPP-POC/PPP-POC?:iid=1

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• Broadened funding opportunities

• Potential cost-share and support for federal funding

• Valuable feedback

• Student opportunities

• Closer to nearer-term “real-world” impact

• Opportunity to bring technology to market

Value of Working with Industry

Working with Industry

• Projects usually begin at a smaller scale, looking for early wins, and increase over time if successful

• Seek multidisciplinary impact and teams

• Projects often bring more complexity due to interdisciplinary nature

• Looking to define impact on future products

• Expect deliverables on a deadline and on budget

• Follow-through and Follow-up are vital

• On-going communication

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Considerations for Industry

• Overhead (Facilities & Administration/F&A)

–Not a tax – this is a common misconception by industry

• Confidentiality is a must

–SPS creates and approves all CDA/NDA/PIA’s

–Do not sign a CDA/NDA/PIA without SPS review

• Do not send materials to a company until you have a MTA in place

• Intellectual Property

–Several options

Partnership Success -Rolls-Royce

1st Building in the Purdue Aerospace District, opening March 2017

Purdue and Rolls‐Royce $33 million strategic partnership, announced April 2016

• Focused research on selected technologies

• Fellowships, Interns, Co‐ops

• High‐level Purdue partnership manager to ensure ongoing success

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• >60 years of mission-critical partnership

• $18.3M / 5yr ResearchAgreement

• Interns, Co-ops,Rolls-Royce Fellows

• Customized Master’s Deg.

• ~700 Purdue degrees

• 1st RR Univ. Tech. Center(UTC) in US

• 1st R&T facilityin Aerospace District

Rolls-Purdue Partnership

Partnership Success –General Electric

General Electric Aviation and Purdue President Mitch Daniels’ announcement of the Lafayette IN GE engine facility, June 2014

Purdue and GE’s multiple long‐term partnerships

• Major Research thrusts: Advanced Manufacturing and turbine engines

• Substantial funding from the GE Global Research and Turbine Engine divisions

• Support of the Lafayette LEAP engine assembly facility

• Student engagement and employment

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Photo courtesy of Ford (Krause/Chander/Herman) 2-9-17

Partnership Success -FordFord – Purdue Alliance• Alliance – Stanford, MIT, Michigan, Aachen, OSU, NWU, MSU, PU, VT

• Budget 3X since 2011, CEO sees value/ROI

• Alliance Projects ~$100,000/year (up to 2 yr.)

• Grow # partners slower than funding

• 1 page concept papers w/ broad RFP

• Odds of funding ~50% (after co-develop proposal w/ Ford PI)

• Why Purdue?

Strong performance in University Research Program (URP) & Dept. funding

21 projects at $1.1M invested from 2012-2016

4 projects at $450K (pending) for 2017

• Alliance Managers:

Bala Chander ([email protected])

Dave McKinnis ([email protected])

Why do we work with Universities?

• No organization has sufficient internal resources for technical leadership in all areas of interest

• Companies that most effectively leverage external resources will gain competitive advantage

Photo courtesy of Ford (Krause/Chander/Herman) 2-9-17

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Purdue Technical Assistance Program

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• State funded business assistance

• Funds up to 40 hours of faculty involvement for qualified projects and companies

Example: Mid-Land Meals Inc., Lafayette IN

Charlene Sullivan (MGMT) helped the organization adopt good business practices.

“I love the way working with Purdue TAP makes you examine your own organization closer. They give you other ideas and ways of looking at your own programs and help you see your strengths. It is wonderful to have Purdue help us become better known across the state. ”

‐ Elaine Brovont, Executive Director, Mid‐Land Meals Inc.

Thank You!

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Corporate and Foundation Relations (CFR)

Michael PedleyAssistant Vice President, Corporate and Foundation Relations

Impact of Corporate and Foundation Support

Lilly Endowment• $40 million to support new

facilities, faculty and students• $4.8 million to support the Military

Family Research Institute• $51 million to launch

Discovery Park• $25 million for College of Pharmacy• $17.5 million for endowed

professorships• $20 million for Military Family

Research Institute• $3.5 million for

entrepreneurial

related programs

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Corporate Relations

• Corporate Relations builds comprehensive relationships with companies o Research o Recruiting o Miscellaneous engagement points

• Promotes Purdue’s needs and goals while providing return on investment for the corporation

• Coordinates a group effort across campus• We are here to help!

Companies’ Reasons for Supporting

Recruiting students

Faculty research

Build its reputation

Impact curriculum

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Relationship Mapping

Programs Companies Tend to Fund

• Recruiting activities • Faculty and Graduate Student Research

o Contractedo Gift

• Programs and centers (e.g. diversity, research)• Undergraduate scholarships• Graduate students/fellowships• Facilities

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Stewardship

• Provides comprehensive annual report to top corporations of activities and funding

o Coordinate with SPS (financial reporting)o Follow up with faculty (research narrative)o Follow up with administration and faculty

(program, centers etc.)

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Foundation Relations

1. What is a foundation

2. Why we interact with them

3. How we interact with them

What Are Commonly Thought of As Charities…

501(c)(3)

Religious,

Educational,

Charitable,

Scientific,

Literary,

Testing for Public Safety,

Foster National or International Amateur Sports Competition,

Prevention of Cruelty to Children or Animals

Private Foundations

All 501(c)(3) organizations that don't qualify as public charities; some private foundations are additionally sub-classified as private operating foundations or private non-operating foundations, which receive some of the advantages of public charities

Public Charities

509(a)(1) Publicly-supported charities

509(a)(2) Exempt purpose activity-supported charities

509(a)(3)

Supporting organizations for 509(a)(1) or 509(a)(2) charities

509(a)(4)Public safety charities

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Nature of Foundation Giving

• Original donor had a cause they were interested in

• Desire to change a region

• Create national impact on a particular issue

• Gather information and disseminate information

• Provide ongoing support for specific organizations

Why Interact with Foundations?

• They are set up to give away money to nonprofit entities

• Typically support:o Research, programs, seed money

• Typically do not supporto Capital projects, endowments, ongoing

operations

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How Do We Find the Right Foundation?

• Requests for Proposals

• Faculty or program director identifies a potential connection

• A project, program, or research has been identified as an area of need and a priority

Foundation Grant Process

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Communicating with Foundations

Contact us to help you with

• Letters of Inquiry

• Applications

• Phone Calls

• Reporting/Stewardship

• Invitations to Campus (rare)

Remember…

Foundations exist…

to give away money to help society.

If you have a project that fits with a foundation’s guidelines,

you are in fact helping them achieve their mission.

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How to Get Help

• Michael Pedley, Assistant Vice President for Corporate and Foundation Relations, 4‐3702, [email protected]

CFR Offices in Units

• College of Agriculture• College of Engineering• College of Health and Human Sciences• College of Liberal Arts• College of Science• School of Management• All units are supported by our central offices

Questions?

Thank You!

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Ken L. SandelSenior Director Sponsored Program Services

How to work with Industry and

Evaluating Contracting

Options

1

Research awards $403M

$261

$301

$334 $332 $332

$396

$351

$319

$389 $401 $403

$‐

$50

$100

$150

$200

$250

$300

$350

$400

$450

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Millions

Sponsored Research Awardssystem‐wide excluding ARRA

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FY16 Awards System-wide: $403 million

“New” Partnership Approach

STRATEGICPARTNERSHIP

PARTNERSHIP

PREFERREDSUPPLY CHAIN

NICHE CONNECTIONS

OPEN SEASON

Comprehensive Institutional–level engagement,long-term horizon, interconnected facets

joint strategic planning

Transactional,one-off Interactions

Engagement to meet narrow clustered needs

HR-driven relationshipsprimarily for recruiting, testing

Broader engagement,focus on mutual benefits

Incr

easi

ngly

Str

ateg

ic E

ngag

emen

t


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Regulatory/Compliance• Export Control• Information

Assurance• Conflict of Interest• Research Integrity

Pre-Award Services• Research Development Support• Budget Preparation• Contracting Support• Project Logistics• PI Support

Infrastructure• World Class Facilities• Discovery Park• Core Facilities• Centers and Institutes• Instrumentation & Equipment

Innovations & IP Portfolio• Purdue Research Park• Office of Technology

Commercialization• Foundry• Innovation District• Aerospace District

Talent• World Class Faculty & Staff• Graduate and Undergraduate

Students

Experience• $1.2 Billion in Federal Research 5yrs -

2012-2016• Flexible Contracting Models• $600 Million in Annual Research

Expenditures

Connections• Strategic Partnerships• Strategic Alliances

• Government• Private Sector• NGOs• International• Alumni

Post Award Support• Award Administration• Business Office Support• Regulatory Oversight• Contracting Support• Reporting• Monitoring• Cradle to Grave

Facility Clearance• Classified Research

• Contracts/Grants• Cooperative Agreements• ID/IQ – Task Orders• CRADA/PIA• OTAs• IPAs

Faculty• Research Projects • Faculty Sabbaticals• Professionals in Residence• Consulting • On-line/Distance Education

Students• Internships/Co-Ops • Job Opportunities• Fellowships

• Master Agreements• BOA• WFO• NDA• MTA• Facility Use Agreements

Purdue’s Research Ecosystem

RESEARCH & DEVELOPMENT

EDUCATIONALPROGRAMS

COLLABORATIONS

STRATEGICPARTNERSHIP

PARTNERSHIP

PREFERREDSUPPLY CHAIN

NICHE CONNECTIONS

OPEN SEASON

Contracting Mechanisms Access to Talent


Sponsored Program Services

Pre‐Award Contracting Post Award Data & Support Quality Assurance

‐ Proposal Development‐ Organized by College

‐ FY 2016• 3,970 Proposals• $1.609 Billion

‐ Contract Negotiations‐ Organized by Industry/ Federal/State/Misc.

‐ FY 2016• 3,952 Fully Executed Contracts, NDAs, MTAs, etc.

‐ Award Management ‐ Organized by Sponsor

‐ FY 2016• 4,069 Awards• $403 Million

‐ System support and data needs

‐ Internal assessments & Audit engagements

FY 2016• 3,639 Unique Projects (Grants)• >12,000 Accounts (Sponsored Programs)• 1,300 Unique Sponsors• 522 Unique Companies

SPS provides support services for Purdue University’s research enterprise. We have responsibility for proposal development (budget development), contract negotiation, award management, systems and data support and research quality assurance for all sponsored programs proposed and awarded within the Purdue University System.

Sponsored Program Services: http://www.purdue.edu/business/sps/

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PRE-AWARD

Our service‐level agreementPre‐Award specialists provide the following services in the support of PIs:

Review sponsor guidelines, identify key requirements

Assist with budget preparation, related documentation and proposal submission forms

Prepare required sponsor administrative forms

Ensure that all Purdue information included within the proposal is accurate and

complete

Contact and collaborate with partner institutions to secure all necessary subcontract

documentation

Assure all regulatory requirements and export control issues are identified

Review the final proposal package to ensure all administrative requirements have been

met

Obtain academic approvals and provide institutional approval for the proposal

Complete the final submission package, upload final documents and forms, and submit

to the sponsor

Proposal Processing TimelineStages On‐Time Deadline

1 ‐ Initial Notification/

Initial Budget Request

3 weeks (15 Business Days)

in Advance

2 ‐ Final Budget, Justification, and

Draft proposal/SOW

1 week (5 Business Days)

in Advance

3 ‐ Final Documents for

Submission (all but final SOW)

2 Business Days (16 hours)

in Advance

4 ‐ FINAL SOW/Project

Description/Research Strategy

1 Business Day (8 hours)

in Advance

Sponsor Deadlines Outside the Business Day (8:00 a.m.‐5:00 p.m.): In the cases where proposals are due outside this timeframe, 5:00 p.m. EST of the day of the deadline should be considered the official submission deadline when calculating the on‐time criteria.

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Proposal Processing Timeline

Scott Levans TeamLead

ContractAnalyst III

Steve Henry Contract Analyst II

Eric LynchContract Analyst

CathyNelson Contracting

Industrial Team Gov’t/Int’l/Misc Team

Kate Dicken ContractAnalyst

Sponsored Program ServicesContracting Team

Including New Strategic Contracts Group

Kyle Wargo TeamLead

Contract Analyst III

VacantContract Analyst

TBDDirector

SPS Contracting

Deborah Hemme(JD)

Contract Analyst

Office of Legal Counsel• Contract Support• Drafting• Issue Review• Consulting• Non‐SPS Core Agreements

Chasity KuxhausenOperations Coordinator

Nate Bowers ContractAnalyst

TBDLead AnalystStrategic Contracts Group

TBDLead AnalystStrategic Contracts Group

Strategic Contracts Group

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CONTRACTING

– Services include, but are not limited to:

• Read and review entire contract, including all attachments

o Funding Agreements (Federal, State, Industrial/Non‐profit)

o Confidentiality Agreements (NDA’s, CDA’s)

o Material Transfer Agreements (MTA’s)

o Equipment Transfer/Loan Agreements

o Miscellaneous Agreements (MOU, LOI, LOA’s, Etc.)

• Identify terms not matching proposal (project term, deliverables, etc.)

• Contact Proposal Specialist or PI for clarification/ verification

• Ensure export control review is complete

• Identify contractual terms not in compliance with University policy, federal requirements, state requirements, and state and federal law

• Present redline to sponsor and negotiate

Negotiate and process all contracts associated with sponsored programs

POST AWARD

Our service‐level agreementPost Award Research Administrators provide services which include but are not limited to:

• Award establishment, management, and closeout• Administrative and financial assistance for faculty, researchers, and business

offices• Guidance on sponsor specific guidelines and regulations• Invoicing sponsors, drawdown letter of credit and follow up on collections of

past due invoices• Work with partnering institutions to secure all necessary subcontract

documentation• Collaborate with other university staff as appropriate• Prepare and submit financial and property reports and assist with electronic

submission of technical reports• Review budgets, cost sharing and related documentation

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POST AWARD

Our service‐level agreement (continued)

Post Award Research Administrators provide oversight and compliance services which include but are not limited to:

• Assure all regulatory requirements and export control issues are identified and contain appropriate disclosures and approvals

• Review award document for requirements and highlight key issues for faculty and business offices

• Facilitate the establishment of agreements with and the payment of subrecipients

• Work closely with business office staff to ensure all cost share commitments are met

Post Award – SPS ‐ Sponsor Specific Areas• NSF/DHHS• Other Federal• Non‐Federal• Ag Field Office

Post Award – Business Office – Department Specific AreasFirst Point of Contact:

• Research Expenditures • Human Resources• Purchasing• Account Numbers (Startup/Discretionary funds)• Travel• Account Management

POST AWARD

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Intellectual Property

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What is Intellectual Property?• The following types of property are recognized as IP under applicable law:

o An Invention and any associated patent application or patent

o A Copyrightable Work and any associated copyright or copyright registration

o A Trademark and any associated registration

o Research Data

o Tangible Research Property or other evidence produced in the course of research

o A trade secret

• Intellectual Property that arises in any part in the course of employment or enrollment at the University, or in the course of a work‐for‐hire relationship or visiting scholar relationship with the University

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What is Not Intellectual Property?• The University permits authors to retain and manage the copyright to

Instructional Copyrightable Works and Scholarly Copyrightable Works, subject to a license in favor of the University

• The University permits a student to retain title to Intellectual Property that the student creates for (1) credit and (2) without compensation in a University course through the use of (3) course‐wide resources, provided that the Intellectual Property is not burdened by any pre‐existing contractual obligation of the University (all 3 must exist)

• Intellectual Property from research directed and funded under a work‐for‐hire contract administered by the University’s Sponsored Program Services is not Purdue Intellectual Property

• Intellectual Property from research performed pursuant to a University contract that expressly exempts the research from the application of this policy is not Purdue Intellectual Property

• Intellectual Property generated solely in the course of an Outside Activitywithout the use of University Resources or pre‐existing Purdue Intellectual Property is not Purdue Intellectual Property

• Research IP made by one party belongs to that party (i.e., ownership follows inventorship under US Patent Law)

• Research IP made jointly by both parties belongs jointly to both parties

• Each party retains its rights in background IP

• Each inventor assigns IP to employer

• Sponsor may receive non‐exclusive royalty‐free license (“NERF”) for research purposes

• Sponsor gets first option to negotiate an exclusive, royalty‐bearing license on “commercially reasonable” terms

• Options are typically time limited; university seeks to find licensee to develop or commercialize and pay patent expenses

• Researchers free to publish research results – researcher must have unfettered publication rights. Copy of publication provided to Sponsor

• Sponsor given time to review & comment on publication

• Sponsor may request limited delay for filing patent application

Traditional Approach – IP and Publications

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Demand

• Sponsors no longer satisfied with a “traditional” approaches

• Requesting/insisting that agreements include CNERF

• NERFs and CNERFs do not generate licensing revenues to university or ensure commercialization of IP

• Sponsors are asking for specific license terms or pre‐negotiate the license agreement or assignment

Impact

• Research no longer qualifies as “basic research” and may instead be considered a “private business use”

• May jeopardize university’s tax‐exempt status & cause university to violate tax‐exempt bond commitments if not managed

• Non‐exclusive licenses may impair commercialization of IP because university cannot grant an exclusive license to any third party

• Certain rights may limit the PI’s ability to do follow‐on projects

Current Trends – Sponsor Demands/Impact

• Some universities are offering Sponsors additional and less restrictive IP rights to encourage high levels of privately‐sponsored research funding

• These novel approaches are generally not available for any projects that receive funding from federal grants

• Leaders in novel approaches

o University of Minnesota

o University of Arizona

o Penn State

o Georgia Tech

o Iowa State University

o University of Oregon

o University of Michigan

o Purdue University

Novel Approach

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• Model 1: Basic Fundamental Research offers no assignment rights; Sponsor receives NERF with option to negotiate a royalty‐bearing license

• Model 2: Expanding Technologies Model offers no assignment rights; Sponsor receives a five‐year, royalty‐free license for an upfront IP fee

– protects faculty’s publication rights

• Model 3: Work‐for‐Hire/Industry‐Focused Applied Research: Sponsor will own new IP outright once the upfront IP fee is paid

– protects faculty’s publication rights

• Model 4: Testing Services does not contemplate new IP being created; Sponsor owns data created. No Purdue BIP is included. Sponsor controls publications

• Industry Sponsored Student Class Projects assigns or licenses IP rights to the Sponsor, but allows students to opt out of these projects to pursue projects that do not force them to give up IP rights

Purdue’s Novel Approach

Basic Research (model 1)Sponsor receives non‐exclusive royalty‐free license (non‐commercial)IP Fee – noneF&A – Federally Negotiated Rate – 55%

Expanding Technologies (model 2)Sponsor receives exclusive license for 5 yearsIP Fee ‐Minimum of 10% or $5,000F&A ‐ Uncapped Rate ‐ 64.75%

Work‐for‐Hire (model 3)IP Assignment to SponsorIP Fee ‐Minimum of 25% and $10,000F&A ‐Uncapped Rate ‐ 64.75%

IP Fees & F&A

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Net IP Fee Distribution – Procedures• The University will in its discretion distribute Net Proceeds* on an equitable

basis:

o 1/3rd to the department or administrative unit(s) from which the underlying Purdue Contract originated, with due consideration of appropriate requests for sub‐allocations to particular centers and research units.

o 1/3rd to the Trask Fund to support its research and development programs.

o 1/3rd to the Principal Investigator(s)

*25% of the fee retained to covers costs of processing contracts with special IP terms and conditions

Current Lifecycle Model

“The Queue”

Business Development

SPSPre‐Award

Funding

SPS Contracting SPS Post Award(PI Education, Multi‐Issue Management)

Commercialization

Past ‐ IP DecisionsCurrent ‐ IP Decisions

Discovery

OTC

• Strategic Alliances/Partnershipso Comprehensiveo Enduringo Physical Presence

• Master Agreements

Rainmakers• Faculty• Suresh Garimella• OCCGP• Tomas Diaz de la Rubia• Tom Verhoeven• Dan Delaurentis• Dan Hasler• Deans/Associate Deans for Research• Many Others

• Basic Research

• Testing

• Work‐for‐Hire/Expanding Technologies

• Contracts involving $ coming into Purdue

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Strategic Partnership Stewardship Model

BUSINESSDEVELOPMENT

STRATEGIC CONTRACTINGTEAM

ALLIANCETEAM

Rainmakers• Academic Leads• OCCGP• Rainmakers• Others

Deal Team• Deal Team Lead• Academic Lead• Legal Counsel

Secondary• Alliance Managing Director• Pre‐Award Specialist• Post Award Specialist

Alliance TeamPrimary

• Principal Investigator• Alliance Managing Director• Pre‐Award Specialist• Post Award Specialist• Contract Analyst

Secondary• Deal Team Lead• Academic Lead• Legal Counsel

Questions

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