unit n4 conference 6fp bucharest - 13 february, 2004 how to prepare and manage eu proposals and...

Unit N4 Conference 6FP Bucharest - 13 February, 2004

HOW TO PREPARE

AND

MANAGE EU PROPOSALS

AND

CONTRACTS

Yves Motteu

Unit N4 Conference 6FP Bucharest - 13 February, 2004 2

Preparing a proposal

Call for proposals with strict deadlines

Prepare in advance by

• Reading the work programmes (subject areas, instruments, evaluation criteria)

• Forming a partnership and defining the basic principles of the relationship

• Creating an outline of your proposal


Who can participate

Participants in FP6 have to be legal entities

In principle a legal entity from any country in the world can participate. But different rules for participation and funding apply to different groups of countries (details are given in work programmes and calls for proposals)

For EU Member states and Associated Candidate Countries, no restriction for participation and funding


The instruments

Instruments are the means of Commission intervention

FP6 introduces 3 new instruments (integrated projects, network of excellences and “article 169”)

The “old” instruments have been adapted (specific targeted research projects, coordination actions, specific support actions)


Submission of a proposal

Structure: 2 parts

→ Part A: administrative forms→ Part B: description of the project and the consortium

Methods of submission

• Prepare on-line, submit on-line• Prepare off-line, submit on-line• Prepare off-line, submit on CD or disk• Prepare off-line, submit on paper


Financing

Grant for integration

Grant to the budget

Flat-rate

Networks of excellence

Integrated Projects

Specific targeted research projects

Specific research projects for SMEs

Integrated initiatives relating to infrastructure

Actions to promote human resources & mobility

Coordination actions

Specific support actions


Financing

Cost Reporting Models

FC: actual direct and indirect costs (not available for Coordination Actions and Specific Support Actions)

New FCF (variant of FC): actual direct costs + flat rate for indirect costs (20% of total actual direct costs, except costs of subcontracts - all instruments)

AC: actual additional direct costs + flat rate for indirect costs (20% of total actual additional direct costs, except costs of subcontracts - all instruments)


Cost reporting models

General Rule: a legal entity applies the same cost model in ALL contracts established under FP6 except may move from AC to FCF/FC or from FCF to FC (“one way ticket”)

Cost model Who can use it ?

FC - All legal entities

FCF - Non-commercial or non-profit organisations- International organisations- Small or Medium-Sized Enterprises (SMEs)

AC - Obligatory for physical persons - Non-commercial or non-profit organisations or international organisations not having an accounting system allowing them to distinguish the share of their direct and indirect costs to the project


Financing: type of activity

Maximum Reimbursement rates of eligible costs

RTD activities

Demonstration activities

Training activities

Management of the Consortium activities

Other specific

activities (*)

NoE

100% (up to 7% of EC

contribution) 100%

IP FC/FCF : 50%

AC : 100% FC/FCF : 35%

AC : 100% 100%

100% (up to 7% of EC

contribution)

(*) Joint Programme of Activities, except management of the consortium activities


Tips for success

Check if:

– Your proposal addresses the call for proposals– Your proposal is complete– Your proposal addresses all questions (see guide

for proposers)– The objectives are clear– It is clear how the project will be managed– The partnership is right (clear roles,

responsibilities, complementarity,…)


Help in proposal preparation

Guide for proposers: practical information and advice on how to prepare and submit proposals

National Contact points established in all EU Member States and in the countries associated to FP6

Commission info-desks for the different thematic priorities and activities of FP6


Evaluation of proposals

Eligibility checks→ Receipt of proposal before the deadline→ Minimum number of participants→ Completeness of the proposal

Evaluation with assistance of independent experts

Evaluation criteriaThe set of criteria varies between instrumentsAre described in the work programmes

Ranking versus budget


Example of criteria

Integrated projects

Relevance to the objectives of the programmePotential impactS&T excellenceQuality of the consortiumQuality of the managementMobilisation of resources


Contract negotiations

Coordinators receive a letter with

• The Evaluation Summary Report• Contract preparation forms (CPF) to be completed by all

participants

Separate set of CPF for each instrument

Description of the work to be submitted with the CPF Will serve as the basis for Annex I to the contract

In some cases, when the collective responsibility is not applied or does not sufficiently cover the advance payment, some participants will have to provide annual financial statements


Consortium agreement

Regulates internal organisation and management of consortium

New Compulsory unless otherwise mentioned in the call for proposal

Between contractors - NOT signed nor approved by the Commission

Non binding guidelines provided by the Commission


Participant = contractor

Every legal entity contributing to a project must have a contractual link with the Community

Same rights and obligations

Exception to rule: subject to very restrictive rules• Third parties• Subcontractors

(but these contributors are NOT participants)

Contractors

identified in Annex I


Role of the coordinator

Additional responsibilities:

Ensures that the other participants complete on time the formalities to accede to the contract

Is the intermediary for communication between the contractors and the Commission (reporting)

Receives all payments made by the Commission to the consortium

Keeps accounts to determine what portion of the Community has been paid to each contractor


Subcontracting

Contractors shall ensure that the work to be performed can be carried out by them.

Exception: where it is necessary to subcontract certain elements of the work, this should be clearly identified in Annex I

Management activities should not be subcontracted

Minor services may be subcontracted: which do not represent core elements of the projectwhich cannot be directly assumed by contractorswhere necessary for the implementation of the project


Contract: Content Core contract (standard with specifics of project - negotiated)

• timing, financing, reporting details of this project• any special clauses specific to this project

Annex I (technical tasks - the “project” - negotiated)• technical details of this project – specific to it• including budget and breakdown, subcontracting, third

parties

Annex II General Conditions (standard)(applicable to every instrument)

Annex III Instrument specific provisions (standard - specific to instrument – if applicable)


Contract Structure

Annex IV - Form AConsent of contractors identified in the core-contract (article 1.2) to accede to the contract. To be signed by the contractor concerned and by the coordinator

Annex V - Form BAccession of new legal entities to the contract. To be signed by the new contractor concerned and by the coordinator

Annex VI - Form CFinancial statement per activity. Specific to each instrument and/or type of action. To be filled periodically by each

contractor


Signature and entry into force

Contractual link of all contractors with the Commission

New Contract enters into force upon signature of coordinator and Commission

All the contractors are identified in the core contract

Coordinator must ensure other contractors sign within delays

Distribution of advance - Several options available: minimum number of participants/all participants

Evolution of consortium possible:→ where one or more does not sign the Form A [article 2]→ in case of enlargement (new contractors) [article 3]

Project begins in the date established in the contract (this can be before the contract enters into force but usually later)


Managing a project

Active monitoring is essential

Adequate management structures to deal with an increased level of autonomy and flexibility (dedicated management staff from the consortium)

Recording and identifying costs in relation to the project

Protecting, publishing and using the knowledge generated


Reporting and deliverables

Periodic reports and final report to be submitted within 45 days following the end of each period (12 months for IP and NoE)

Types of report:• Activity report• Management report• Distribution of the Community contribution between contractors• Supplementary reports required by Annex to the Contract• Audit certificates if required by the contract

The Commission undertakes to evaluate reports within 45 days of receipt. The absence of a response within this delay does not imply approval by the Commission


Payment modalities

Payments made to the coordinator on behalf of the consortium

High degree of flexibility in the management of the EC financial contribution

System of periodic advance payments (pre-financing) covering a reporting period plus the first six months of the following reporting period (normally 80% of the estimated EC contribution)

Further payments based on the approval of the periodic reports


Pre-Financing - payment

Distribution of pre-financing to coordinator by Commission: within 45

days of: date of entry into force of contract or date of signature of

minimum number of participants or date of signature of last

contractor (established by contract)

Distribution of pre-financing to other contractors by coordinator: not

before minimum number of contractors have acceded to the contract

if 45 days within date of entry into force of contract or receipt of any

bank guarantees or other financial security (if special clause)


Payments and reporting schedule for an IP

(example of a 4 year contract)

Activity report

Reported costs

Activity report Detailed work plan

Reported costs Adjusted advance

Activity report Detailed work plan

Reported costs Adjusted advance

Activity report

Reported costs

Detailed work plan

Adjusted advance

Detailed work plan

Initial advance

0 6 12 18 24 30 36 42 48

Months


Eligible costs New : 1 - No more cost categories 2 - Costs must be :

actual, economic and necessary for the project incurred during the duration of the project (exception: costs of

final reports) recorded in the accounts of the contractor (or third parties)

and must exclude indirect taxes, duties, interests, costs reimbursed in respect of another Community project, and not give rise to profit

3 - Total costs identified in Annex I


Audits

Audit certificates by external auditor

• In some instruments for each partner and each year (IP/NoE)

• For public bodies – competent public auditor

Audits by the Commission, Court of Auditors or external reviewers


LIABILITY

New: Collective responsibility of contractors

Mechanism by which a contractor may be held liable, technically and/or financially, fully or partially, for the action of another contractor

Consequence of FP6 principle of “autonomy of the consortium”: if the money is granted to the consortium, which decides on its allocation, then the consortium as a whole is to be held liable (public bodies are excluded from the financial liability)


For more information

General information on FP6

– http://europa.eu.int/comm/research/fp6/index_en.htm

Legal framework within FP6

– Model contract : http://europa.eu.int/comm/research/fp6/working-groups/ model-contract/index_en.html

Helpdesk

– http://www.ipr-helpdesk.org– [email protected]

unit n4 conference 6fp bucharest - 13 february, 2004 how to prepare and manage eu proposals and...

Documents