DEPARTMENT OF THE NAVY OFFICE .01" NAVAL RESEARCH

815 NORTH RANDOLPH STREET SUIn\142&

ARLINGTON, VA 2220~11}95

Agreelnent ])ate: June 24, 2011

NEGOTIATION AGREEMENT

INSTITUTION: THE PENNSYLVANIA STATE UNIVERSITY UNIVERSITY PARJ(,P.t\ i6801~3857

The Fringe BenefIt rates contained herein ~e for USf.!On grants. contracts andlor other agreements issued. or awarded to the Pennsylvania State University (PSU) by all Federal agencies in accordance with the cost principles mandated by 2 CFR 220. These ra,tes shall be used fur forward pricing and billing purposes for the PSU's Fiscal Year 2012. This rate agreement supersedes all previous rate agreements/deWrminati9J1s for Fiscal Yc;ar2012.

Seetion I: RATES - TYPE: FIXJD WITlI CARRY-FORWARDPR.OVISIONS(FIXED)

FRINGE BE~FIT RATES

TYPE FROM ...IQ... RATE BASE APPLICABJ& TOILOCATTON

Fixed 7/1/11 6/30/12 31.8% (a) Salaries! AU

Fixed 7/1111 6/30112 7.9% (b) Wages/All

Fixed 7/1111 6130/12 14.1% (0) Graduate Assistants / All

Fixed 1/1111 6130/12 0.2% (d) Studen~AU

DISTRIDUTION BASES

(a) Salaries, excluding graduate assistants~ fixedtenn n and visiting faculty appeintments not receiving fuUb(mefits,

(b) Wages and those sakuies not receiving full benefits, ex~i"siveofgrad~ assistants and student wages,

(c) Graduate assistant salaries.

(d)Student. wages.

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SECTION n: GENERAL

A. LIMITATIONS: Use of the rates set forth under Section I is subject to any statutory or administrative limitations and is applicable to a given grant, contract or other agreement only to the extent that funds are available and consistent with any and all limitations ofcost clauses or provisions, ifany, contained therein. Acceptance of any or all of the rates agreed to herein is predicated upon all the following conditions: (1) that no costs other than those incurred by the grantee/contractor were included in its indirect cost pool as finally accepted and that all such costs are legal obligations ofthe grantee/contractor and allowable under governing cost principles; (2) that the same costs that have been treated as indirect costs are not claimed as direct costs; (3) that similar types ofcosts, in like circumstances, have been accorded consistent accounting treatment; (4) that the information provided by the contractor/grantee, which was used as the basis for the acceptance ofthe rates agreed to herein and expressly relied upon by the Government in negotiating the said rates, is not subsequently found to be materially incomplete or inaccurate.

B. ACCOUNTING CHANGES: The rates contained in Section I ofthis agreement are based on the accounting system in effect at the time this agreement was negotiated. Changes to the method(s) ofaccounting for costs, which affects the amount of reimbursement resulting from the use ofthese rates, require the written approval ofthe authorized representative of the cognizant negotiating agency for the Government prior to implementation ofany such changes. Such changes include but are not limited to changes in the charging ofa particular type ofcost from indirect to direct. Failure to obtain such approval may result in subsequent cost disallowances.

C. FIXED RATES WIm CARRY·FORWARD PROVISIONS: The fixed rates contained in this agreement are based on estimates ofthe costs for FY 2012. When actual costs for this fiscal year are determined, adjustments will be applied to the next subsequent rate negotiation to recognize the difference between the FY 2012 estimated costs used to establish the fixed rates and the negotiated actual FY 2012 costs.

D. CARRY.FORWARD AMOUNTS: The following carry-forward amounts were considered in the establishment ofthe FY 2012 rates:

Estimated FY 20 10 Rate Category Under /(Over) Recovery

Salaries $586,000 Wages ($193,000) Graduate Assistants ($996,000) Student Wages ($66,000)

The differences between estimated FY 2010 carry-forward amounts and actual negotiated carry­forward amounts will be included as adjustments in subsequent year rate negotiations.

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DEBORAH K. RAFt

E. USE BY OTHER FEDERAL AGENCIES: The rates set forth in Section 1 hereof were negotiated in accordance with and under the authority set forth in 2 CFR 220. Accordingly, such rates shall be applied to the extent provided in such regulations to grants. contracts and other transactions to which 2 CFR 220 is applicable. subject to any limitations in part A ofthis section. Copies ofthis document may be provided by either party to other Federal agencies which have or intend to issue or award grants and contracts using these rates or to otherwise provide such agencies with documentary notice of this agreement and its terms and conditions.

PENNSYLVANIA STATE UNIVERSITY: FOR THE U.S. GOVERNMENT:

#J.~~/ , JOSEPH J. DONCSECZ

Corporate Controller Contracting Officer

('/ 'Z- 7h..of/ Date

1:r7(I Date I I

For iriformation concerning this agreement contact: Owen Nicholson Phone: (703) 696·7742 Office ofNaval Research E-mail: owen.nicho)son@navy.mil 875 North Randolph Street, Room 372 Arlington, V A 22203

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DEPARTMENT OF THE NAVY OFFICE Of' fiAVAl RESEARCH

875 NORTH RANDOLPH STReET WITE 1425

ARLINGTON, VA 2220~1995

Agre~ment Date: June 1,2011 Supersedes Agreement Dated: June 30~·2010

NEGOTIATION AGREEMENT

INSTITUTION: THE PENNSYLVANIA STATE UNIVERSITY UNIVERSITY PARK,PA 16801-3857

The Facilities and Administrative (F&A) cost rates contained herein ~e for use on gr;:l1lts, contracts and/or other agreements issued or awarded to the Pennsylvania State University (PSlJ) by all Federal Agencies of the United States ofAmeriea. in acoordance with the cost principles mandated by 2 CPR 220. These rates shall be used fur forward pricing and billing purposes for the PSU's Fiscal Years 2011 through 2013. until amended. This rate agreement supersedes all previous rate agreements/determinatjqns for FiscaJ Years 2011 through 2013.

Section I: RATES - TYPE: PredeterQlined (pred) and Fued (Fked)

UNIVERSITY PARK

TYPE FROM TO RATE RATE BASE AP:fLlCABLE TOlLOCATION OnCamQus OffCamnus

Pred 711/10 6/30/11 46.0% 26.0% (a) Organized Research (llAU Locations Except ARL!•HCM2

•

and EOC3

Fixc<f 7/1111 6/30/12 49.0% 26.0% (a) Organized Research (1) All Locations Except ARL1.JiCM2

,

and EOC3

Fixed 711112 6/30/,13 49.0% 26.0% (a) Organized Research (l) An Locations Except ARL1

, HCM2 ,

and EOC3

I Applied Research Laboratory 2 Hersbey College of Medicine 3 Electro-Optics Center

Page loIS

UNIVERSiTY PARK

TYPE FROM TO . RATE RATE BASE APPLICABLE TOILOCATION

QnCam12us OffCam12us Pred 711110 6/30111 46.6% 26.8% (a) Organized Research (2) All .

Locations Except ARL 1, HCM2, and EOC)

Fixed 7/1111 6/30/12 50.0% 26.9% (a) Organized Research (2) All Locations Except ARL 1. HCM2

,

and EOC3

Fixed 7/1112 6/30/13 49.6% 26.9% (a) Organized Research (2) All Locations Except ARL t, HCM2

,

and EOC)

7/1110 6/30/1 t (a)Pred 42.9010 20.3% Instruction All Locations Except ARLI, HCM2 and EOC3

Fixed 7/1111 6/30/12 42.6% 20.1% (a) Instruction All Locations Except ARLI, HC1f and EOC)

7/1/12 (a)Fixed 6/30/13 41.9% 19.8% Instruction All Locations Except ARL\ HCM2 and EOC3

APPLIED RESEARCH LABORATORY

TYPE FROM TO RATE BASE APP~lCABLE TOLLOQA TJON Pred 7/1110 6/30/11 7.5% (a) Organized Research, ARL I

Pred 7/1111 6/30/12 7.0% (a) Organized Research, ARL1

Pred 7/1/12 6130/13 7.0% (a) Organized Research, ARLI

ELECTRO OPTICS CENTER

TYPE FkOM TO RATE BASE APPLICABLE TOILOCATION Pred 711110 6/30/11 5.4% (a) Organized Research, EOe 3

Pred 7/1/11 6/30/12 5.4% (a) Organized Research, EOC 3

Pred 711112 6/30/13 5.4% (a) Organized Research, EOC 3

J Applied Research Laboratory 2 Hershey College of Medicine 3 Electro-Optics Center

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HERSHEY COLLEGE OF MEDICINE

TYPE FROM TO RATE RATE BASE APPLICABLE TO/LOCA TlON

On Campus Off Campus Pred 7/1110 6/30111 54.0% 24.7% (a) Organized Research HCM2

Fixed 7/1111 6/30/12 53.0% 24.3% (a) Organized Research HCM2

Fixed 711/12 6130/13 53.0% 24.2% (a) Organized Research HCM2

1 Applied Research Laboratory 2 Hershey College of Medicine 3 Electro-Optics Center

DISTRIBUTION BASES

(a) Modified total direct cost (which includes fringe benefits), excludes graduate tuition remission, capital equipment (defined as having a expected life of two years or more and acquisition cost of $5,000 or more), plant construction, building amortization, the portion of each subgrant and subcontract in excess of$25,OOO, and patient care costs.

APPLICABLE TO

(1) Applies to DOD contracts awarded before November 30, 1993, a1l Non-DOD Instruments, and all DOD grants (See Section II, paragrapb F). (Capped)

(2) Applies to only DOD contracts awarded on or after November 30, 1993 in accordance with and under the authority ofDFARS 231.303(1) (See Section II, paragraph F). (Uncapped)

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SECTION II - GENERAL TERMS AND CONDITIONS

A. LIMITATIONS: Use ofthe rates set forth under Section J is subject to any statutory or administmtive limitations and is applicable to a given grant, contract or other agreement only to the extent that funds are available and consistent with any and all limitations of cost clauses or provisions, if any, contained therein. Acceptance of any or all of the rates agreed to herein is predicated upon all the following conditions: (I) that no costs other than those incUITed by the grantee/contractor were included in its indirect cost pool as finally accepted and that all such costs are legal obligations of the grantee/contractor and allowable under governing cost principles; (2)that the same costs that have been treated as indirect costs are not claimed as direct costs; (3) that similar types of costs, in like circumstances, have been accorded consistent accounting treatment; (4) that the information provided by the contractor/grantee, which was used as the basis for the acceptance of the rates agreed to herein and expressly relied upon by the Government in negotiating the said rates, is not subsequently found to be materially incomplete or inaccurate.

B. ACCOUNTING CHANGES: The rates.contained in Section J ofthis agreement are based on the accounting system in effect at the time this agreement was negotiated. Changes to the method(s) of accounting for costs, which affects the amount of reimbursement resulting from the use ofthese rates, require the written approval of the authorized representative of the cognizant negotiating agency for the Government prior to implementation of any such changes. Such changes include but are not limited to changes in the charging ofa particular type of cost from indirect to direct. Failure to obtain such approval may result in subsequent cost disallowances.

C. PREDETERMINED RATES: The predetermined rates contained in this agreement are not subject to adjustment in accordance with the provisions of2 CFR 220, subject to the limitations contained in Part A of this section.

D. FIXED RATES WITH CARRY-FORWARD PROVISIONS: The fIxed rates contained in this agreement are based on estimates ofthe costs for FYs 2012 and 2013. When actual costs for these fiscal years are determined. adjustments will be applied to the next subsequent rate negotiation to recognize the difference between the FY 2012 and 2013 estimated costs used to establish the fixed rates and the negotiated actual FY 2012 and 2013 costs.

E. USE BY OTHER FEDERAL AGENCIES: The rates set forth in Section I hereof were negotiated in accordance with and under the authority set forth in 2 CFR 220. Accordingly, such· rates shall be applied to the extent provided in such regulations to grants, contracts and other transactions to which 2 CFR 220 is applicable, subject to any limitations in part A ofthis section. Copies of this document may be provided by either party to other Federal agencies which have or intend to issue or award grants and contracts using these rates or to otherwise provide such agencies with documentary notice of this agreement and its terms and conditions.

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F. APPLICATION OF INDIRECT COST RATES TO DOD CONTRACTS AND SUBCONTRACTS:

1. Signature of this agreement by the authorized representative of the Pennsylvania State University and the Government acknowledges and affirms the University's request to waive the prohibition contained in DFARS 231.303(1) and the Government's exercise ofits discretion contained inDF ARS 23] .303(2) to waive the prohibition in. DFARS 231.303(1) except for Organized Research at University Park, The waiver request by the Pennsylvania State University is made to simplify the University's overall management of DOD cost reimbursements under DOD contracts.

2. In accordance with DFARS 231.303, no limitation (unless waived by the institution) maybe placed on the reimbursement ofQtherwiseal10wable indirect costs incurred by an institution of higher education under a DOD contract awarded on or after November 30, 1993. wiess the same limitation is applied uniformly to aU other organizations perfonningsimilarwork. 1t has been detennined by the Department ofDefense that such limitation is not bf;:ing rmifom'lly applied. Accordingly, the rates cited (2) ofSection I, as explained under the title, !~APPLICABLE 10" do not reflect the application of the 26% limitation on administrative indirect costs imposed by 2 CFR220, whereas (1) do so.

G. SPECIAL REMARKS: The rates included in Section I are not intended to be applied to Intergovernmental Personnel Act (lPA) costs, Ifthe Pennsylvania State University elects to .seek reimbursement ofF&A or internal overhead costs associated with IPA agreemet)ts. then the University and the Office ofNaval Researoh shall establish special F&Aandior internal overhead (ates for IPA agreements in aceordance with the provisions pf2 CPR 220.

PENNSYLVANIA STATE UNIVERSITY: FOR THE U,S: GOVERNMENT:

H:I~ JOSEPH J. DONCSECZ

~~\" ''S?:f'DEBORAH K. RAF!

C.orporate Controller Contracting Offi(.}er

Date

For iJ(fH'JI'Ialitm ClJncerning thts agreemePlt ClJnlacl: Ol"FICE OF NAVAL RESEARCH Owen Nicholson PHONE: 703.6%.7742 INDiRECT COST BRANCH - RM 371 e-mail: owm.njclw.!soo@na~Y.mil 875 N.RANOOLPH STREET ARLINGTON, VA 22203

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