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Miscellaneous [1 of 3] [1991]
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Miscellaneous [1 of 3] [1991]
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Originally Processed With FOIA(s): FOIA Number: 2005-0336-F 2005-0336-F FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Science and Technology Policy, Office of (OSTP) Series: Bromley, D. Allan, Files Subseries: Miscellaneous Files OA/ID Number: 62091 Folder ID Number: 62091-001 Folder Title: Miscellaneous [1 of 3] [1991] Stack: Row: Section: Shelf: Position: 0 0 0 0 Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 01. Memorandum To: Allan Bromley From: Tom Ratchford 1/11/91 (b)(1) Re: PCAST Advice for Developing an International Framework for Basic Science Megaprojects (3 pp.) Collection: Record Group: Bush Presidential Records Office: Science and Technology Policy, Office of (OSTP) Series: Bromley, D. Allan, Files Subseries: Miscellaneous Files WHORM Cat.: File Location: [Miscellaneous] [1 of 3] [1991] Date Closed: 5/7/2010 OA/ID Number: 62091-001 FOIA/SYS Case #: 2005-0336-F Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. FILE: PCAST . JAN'29 '91 14:16 FROM JOHN P. MCTAGUE PAGE. 001 Ford John P. McTague Ford Motor Company Vice President The American Road Technical Affairs P. O. Box 1899 Dearborn, Michigan 48121-1899 FAX TRANSMITTAL SHEET DATE: 29 January 1991 TO: Dr. Tom Ratchford TELEPHONE: (202) 395-7396 FAX: (202) 395-3719 FROM: Dr. John McTague TELEPHONE: (313) 322-7105 FAX: (313) 845-0512 NUMBER OF PAGES (INCLUDING COVER SHEET): 13 SPECIAL INSTRUCTIONS: Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 02. Letter To: Tom Ratchford From: John McTague 1/24/91 (b)(1) Re: Conversation with Katasuhiko Umehara (12 pp.) Collection: Record Group: Bush Presidential Records Office: Science and Technology Policy, Office of (OSTP) Series: Bromley, D. Allan, Files Subseries: Miscellaneous Files WHORM Cat.: File Location: [Miscellaneous] [1 of 3] [1991] Date Closed: 5/7/2010 OA/ID Number: 62091-001 FOIA/SYS Case #: 2005-0336-F Appeal Case #: Re-review Case #: Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act [44 U.S.C. 2204(a)] Freedom of Information Act [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. Retchford EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF SCIENCE AND TECHNOLOGY POLICY WASHINGTON, D.C. 20506 April 11, 1991 Looks o/c MEMORANDUM FOR OSTP STAFF Hold FROM: KEN YALE SUBJECT: Next PCAST Meeting Please review the attached agenda for the next PCAST meeting, and provide comments directly to Tom Welch or Bill Snyder, at X5101, by MONDAY MORNING, APRIL 15, 1991. If we do not hear from you by that time, we will assume that you concur with the agenda items. Thank you. Ratchford DRAFT As of April 8, 1991 PRESIDENT'S COUNCIL OF ADVISORS ON SCIENCE AND TECHNOLOGY MAY 2-3, 1991 AGENDA THURSDAY, MAY 2, 1991 OPEN SESSION 9:00 AM - 11:00 AM CONFERENCE ROOM COUNCIL ON ENVIRONMENTAL QUALITY 722 JACKSON PLACE, NW 8:30 - 9:00 ARRIVAL AND COFFEE 9:00 - 9:30 OPENING REMARKS DR. BROMLEY 9:30 - 10:30 THE OFFICE OF TECHNOLOGY ASSESSMENT DR. JOHN - AN OVERVIEW OF RECENT REPORTS GIBBONS 10:30 - 11:00 DISCUSSION 11:00 - CLOSING REMARKS DR. BROMLEY AND MOVE TO ROOM 208, OLD EXECUTIVE OFFICE BUILDING DRAFT THURSDAY, MAY 2, 1991 Continued CLOSED SESSION 11:00 - 4:30 PM CORDELL HULL CONFERENCE ROOM ROOM 208 OLD EXECUTIVE OFFICE BUILDING 11:15 - 11:45 NATIONAL SECURITY AND DR. BUCHSBAUM TECHNOLOGY PANEL - A PROGRESS REPORT 11:45 - 12:15 HIGH PERFORMANCE COMPUTING DR. BUCHSBAUM AND COMMUNICATIONS PANEL - A PROGRESS REPORT 12:15 - 1:00 LUNCH 1:00 - 1:30 GLOBAL ENVIRONMENT AND NATURAL DR. LOVEJOY RESOURCES PANEL - A PROGRESS REPORT 1:30 - 2:00 EDUCATION AND HUMAN RESOURCES DR. LIKINS PANEL - A PROGRESS REPORT 2:00 - 2:30 PANEL ON MEGAPROJECTS IN THE DR. McTAGUE SCIENCES DR. RATCHFORD - A PROGRESS REPORT 2:30 - 3:00 BIOSCIENCE AND BIOTECHNOLOGY DR. NATHANS PANEL - A PROGRESS REPORT 3:00 - 3:15 BREAK 3:15 - 3:45 THE DEPARTMENT OF EDUCATION HON. LAMAR ALEXANDER 3:45 - 4:00 DISCUSSION 4:00 - 4:30 DISCUSSION OF JULY AGENDA DR. BROMLEY AND CLOSING REMARKS DRAFT FRIDAY, MAY 3, 1991 CLOSED SESSION 9:00 AM - 12:00 NOON ROOSEVELT ROOM WEST WING WHITE HOUSE 8:30 - 8:50 ARRIVAL AND COFFEE (DR. BROMLEY'S OFFICE, ROOM 358, OEOB) 8:50 - 9:00 MOVE TO ROOSEVELT ROOM 9:00 - 9:15 PREPARATION FOR THIS MORNING DR. BROMLEY 9:15 - 9:30 APPROVAL OF TERMS OF REFERENCE DR. GOMORY AND MEMBERS FOR PCAST PANEL ON DR. SHAPIRO INTERNATIONAL ECONOMIC COMPETITIVENESS 9:30 - 10:00 GOVERNOR SUNUNU 10:00 - 10:15 DISCUSSION 10:15 - 10:30 BREAK 10:30 - 11:00 OTHER BUSINESS 11:00 - 11:15 DISCUSSION 11:15 - 12:00 OTHER BUSINESS AND DR. BROMLEY CLOSING REMARKS 7 EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF SCIENCE AND TECHNOLOGY POLIC WASHINGTON, D.C. 20506 DATE: 34/11/91 TO: JohN Mcrague ADDRESS: FORD MOTOR Co. Telephone Number: 313-322-7105 Fax Number: 313-845-0512 FROM: Tom RaTCHFORD Telephone Number: 202-456-2894 Fax Number: (202) 395-3719 Number of Pages (including cover sheet): 17 SPECIAL INSTRUCTIONS: NATIONAL ACADEMY OF SCIENCES NATIONAL ACADEMY OF ENGINEERING INSTITUTE OF MEDICINE 2101 Constitution Avenue, Washington, D.C. 20418 Date: April 9, 1991 Contact: Susan Turner-Lowe or Stephen Push (202) 334-2138 EMBARGOED: NOT FOR RELEASE BEFORE 3 P.M. EDT, WEDNESDAY, APRIL 10 THREAT OF GREENHOUSE WARMING JUSTIFIES SOME ACTIONS NOW WASHINGTON In spite of great uncertainties in the science of global climate change, the United States should adopt a limited portfolio of measures to reduce production of greenhouse gases, a panel of the Committee on Science, Engineering, and Public Policy (COSEPUP) administered by the National Academies of Sciences and Engineering and the Institute of Medicine said today.* Greenhouse gases trap heat around the earth and may be responsible for observed increases in average global temperature. For the first time in a report that discusses the full range of greenhouse gases, the panel performed engineering and economic analyses for policy options and recommended a mix of initiatives that, over their lifetimes, would either cost relatively little or produce net savings. It did not, however, call for fixed caps on carbon dioxide emissions or taxes on energy use at this time. Recommended programs include phasing out chlorofluorocarbons (CFCs) :- long- lived greenhouse gases that also destroy atmospheric ozone -- in accordance with international agreements. In addition, the panel recommended adoption of energy policies that include efficiency and conservation; suggested exploring an energy (MORE) *The panel's report, Policy Implications of Greenhouse Warming, is available for $14.95 (prepaid) plus shipping from the National Academy Press at the mailing address in the letterhead; telephone (202) 334-3313 or 1-800-624-6242. The publication sales office is located at 2001 Wisconsin Ave., N.W., Harris Building room 384. Reporters may obtain copies from the Office of News and Public Information, also at the letterhead address. - 2 - pricing mechanism that would reflect the cost of environmental degradation; called for increased efforts to reduce deforestation and increase reforestation; and recommended some measures to help human and ecologic systems adapt to future climate change. Most of these actions can be achieved with "best practice" technology currently available. Altogether, they would cut U.S. emission of greenhouses gases an estimated 10 percent to 40 percent below the 1990 level, the panel estimated. Global warming that has occurred in this century -- between about 0.5 degrees and 1 degree Fahrenheit - is consistent with some models, the panel noted, but it could also be the result of natural climatic variability. "Neither can be ruled out," the panel said. Based on current projections, the concentration of greenhouse gases in the atmosphere would be roughly double pre-Industrial Revolution levels by the middle of the next century, causing a possible rise in average global temperature of between 2 F and 9 F. The panel noted that this is broader than ranges adopted in other analyses, but believes that prudent policy choices should be based on conservative assumptions in the face of large uncertainty. Moreover, the panel was concerned about the possibility of "surprises" not predictable by current methods but nevertheless characteristic of complex systems. If global warming is more serious than anticipated, more stringent measures would need to be taken, it added. The study was requested by Congress in 1988. It presents the principal findings and recommendations and incorporates input from three other COSEPUP panels that evaluated national options for reducing or offsetting emissions of carbon dioxide and other greenhouse gases, and assessed the sensitivity of people, economic activities, and natural ecosystems to climatic change. The study was chaired by Daniel J. Evans, former governor and U.S. senator from the state of Washington and an engineer by training. GREENHOUSE GASES Greenhouse gases include water vapor, carbon dioxide, methane, CFCs and (MORE) - 3 - hydrogenated CFCs, tropospheric ozone, and nitrous oxide. These gases act like a greenhouse, effectively warming the planet. If the rate of climate change increases, some ecosystems may not be able to adjust and might be severely affected. Atmospheric concentrations of carbon dioxide, methane, and CFCs continue to rise. The 1990 concentration of carbon dioxide is about 25 percent higher than at the turn of the 19th century; it currently is increasing by about 0.5 percent per year, mostly as a result of burning fossil fuels and forest land. Methane levels are slightly more than double the presumed concentration in 1750 and rising by almost one percent a year. CFCs do not occur naturally and were not present at all in the atmosphere until a few decades ago. The primary tools for evaluating the effect of increasing greenhouse gas concentrations on climate change are exceedingly complex computer programs called "general circulation models" (GCMs). For a doubling in greenhouse gas concentrations, different GCMs project temperature rises of between about 2 F and 9 F. The panel recommended research to improve GCMs. "The larger of these temperature increases would mean climate warming greater than any in human history," the panel noted. "If the higher GCM projections prove to be accurate, massive responses would be needed, and the stresses on this planet and its inhabitants would be serious," it warned. REDUCING OR OFFSETTING GREENHOUSE EMISSIONS The biggest single reduction of greenhouse emissions recommended by the panel would come from eliminating CFCs. It recommended that the United States continue "aggressive phaseout" of CFCs and their replacement by non-greenhouse gas substitutes, as the nation promised in signing the London Protocol last year. The agreement calls for the elimination of CFCs by the year 2000. It also recommended that "full social cost pricing" of energy be studied, "with a goal of gradual introduction of a such a system." Social cost pricing means setting the price of each form of energy at the cost necessary to recoup all societal costs not normally assessed in present pricing mechanisms. Moreover, the nation should (MORE) - 4 "make greenhouse warming a key factor in planning for our future energy supply mix," fostering energy conservation and efficiency, reforming state public utility regulation, increasing research on alternative energy supplies, and boosting research and development of a "new generation" of nuclear reactors. Because trees and other plants remove carbon dioxide from the atmosphere during photosynthesis, the panel urged that the United States act to reduce global deforestation and continue a moderate domestic reforestation effort. However, many details about this remain to be resolved, the committee stressed. In collaboration with international partners, the United States should also continue to study geoengineering efforts - - altering cloud abundance, use of space mirrors to deflect incoming radiation, and artificially adding nutrients to the oceans to increase the uptake of carbon by marine algae. The panel noted that the effectiveness of such actions and their environmental impact, especially their contribution to depletion of the ozone layer, must be carefully evaluated before they could be seriously considered for use. ADAPTING TO GREENHOUSE WARMING Because of its wide geographic variation and advanced technologies, the United States likely would suffer less from global warming than less-developed or smaller countries. This does not mean we can ignore the possible consequences in smaller countries, the panel said. To enhance adaptation in the United States to greenhouse warming, it proposed: maintaining agricultural basic, applied, and experimental research to ensure ample food supply; boosting efficiency of water use through water-pricing policies and better management of the water supply; planning greater margins of safety for long-lived structures -- such as bridges, buildings, dams, and highways : - that are now built with current frequency and magnitude of storms and droughts in mind; and moving to slow losses in biodiversity, including actions to inventory, (MORE) - 5 - collect, and preserve wild species and consider purchase or lease of lands suitable for assisting vulnerable species to migrate to new habitats. GLOBAL LEADERSHIP "The United States should resume full participation in international programs to slow population growth and should contribute its share to their financial and other support because of the potential to make a major contribution to raising living standards and to easing environmental problems like greenhouse warming," the panel said. However, reducing population growth alone "may not reduce emissions of greenhouse gases because it may also stimulate growth in per capita income" and greater use of energy. The panel also said that the United States should participate fully in international agreements and in programs to address greenhouse warming. IMPROVING THE KNOWLEDGE BASE Researchers should continue and expand collection and dissemination of data on the Earth's climate record and of data needed to refine GCMs, the panel stressed. Moreover, it recommended work to improve weather forecasts especially for extremes, and for long-term (weeks or seasons) weather changes : - to ease adaptation to climate change. Field research also should be conducted, including studies of entire ecosystems over long periods of time, to learn how carbon dioxide enrichment in the atmosphere affects the balance of species and determine how it might affect biodiversity. Research on social and economic aspects of global change and greenhouse warming also should proceed apace, the panel urged. Membership of the panel authoring this report and the other three panels participating in the study is attached. The reports of all four panels will be published in a single volume later this year. # # # stl: a,b,d,e,f,g,j,1,m POLICY IMPLICATIONS OF GLOBAL WARMING - EFFECTS PANEL Chair GEORGE F. CARRIER T. Jefferson Coolidge Professor of Applied Mathematics Harvard University, Cambridge, Mass. WILFRIED BRUTSAERT ROBERT E. DICKINSON THOMAS B. KARL Professor of Hydrology, Civil and Institute of Atmospheric Physics Meteorologist Environmental Engineering Department of Atmospheric Sciences Climate Research and Applications Cornell University University of Arizona National Climate Data Center Ithaca, N.Y. Tucson, Ariz. Asheville, N.C. ROBERT D. CESS JOHN IMBRIE MICHAEL C. MACCRACKEN Leading Professor H.L. Doherty Professor of Oceanography Physicist and Division Leader State University of New York Department of Geological Sciences Atmospheric and Geophysical Sciences Stony Brook Brown University Lawrence Livermore Laboratory Providence, R.I. University of California HERMAN CHERNOFF Livermore Professor of Statistics Harvard University BERRIEN MOORE Cambridge, Mass. Professor and Director, Institute for the Study of Earth, Oceans, and Space University of New Hampshire Durham POLICY IMPLICATIONS OF GREENHOUSE WARMING - MITIGATION PANEL Chair THOMAS H. LEE Professor Emeritus, Department of Electrical Engineering and Computer Science Massachusetts Institute of Technology, Cambridge PETER BREWER RICHARD GARWIN EDWARD S. RUBIN Monterey Bay Aquarium and Research Thomas J. Watson Research Center Professor, Mechanical Engineering and Center Yorktown Heights, N.Y. Public Policy, and Director, Pacific Grove, Calif. Center for Energy and Environmental JOSEPH GLAS Studies EDITH BROWN WEISS Director, Freon Products Division Carnegie Mellon University Professor of Law E.I. du Pont de Nemours &.Co. Pittsburgh, Pa. Georgetown University Wilmington, Del. Washington, D.C. MILTON RUSSELL (resigned from panel October 1990) KAI N. LEE Professor of Economics Associate Professor University of Tennessee RICHARD N. COOPER Department of Political Science and Knoxville, and Professor of Economics Institute for Environmental Studies Senior Economist Harvard University University of Washington Oak Ridge National Laboratory Cambridge, Mass. Seattle Oak Ridge, Tenn. ROBERT CRANDALL GREGG MARLAND STEPHEN H. SCHNEIDER Senior Fellow Scientist, Environmental Science Division Head, Interdisciplinary Climate Systems Brookings Institute Oak Ridge National Laboratory National Center for Atmospheric Research Washington, D.C. Oak Ridge, Tenn. Boulder, Colo. ROBERT EVENSON JESSICA TUCHMAN MATHEWS EUGENE B. SKOLNIKOFF Professor of Economics Vice President Professor of Political Science Economic Growth Center World Resources Institute Massachusetts Institute of Technology Yale University Washington, D.C. Cambridge New Haven, Conn. ARTHUR H. ROSENFELD THOMAS H. STIX DOUGLAS FOY Professor of Physics and Professor, Department of Astrophysics and Executive Director Director, Center for Building Science Plasma Physics Laboratory Conservation Law Foundation Lawrence Berkeley Laboratory Princeton University Boston, Mass. University of California Princeton, N.J. Berkeley ROBERT A. FROSCH Vice President General Motors Research Labs Warren, Mich. POLICY IMPLICATIONS OF GLOBAL WARMING - EFFECTS PANEL Chair GEORGE F. CARRIER T. Jefferson Coolidge Professor of Applied Mathematics Harvard University, Cambridge, Mass. WILFRIED BRUTSAERT ROBERT E. DICKINSON THOMAS B. KARL Professor of Hydrology, Civil and Institute of Atmospheric Physics Meteorologist Environmental Engineering Department of Atmospheric Sciences Climate Research and Applications Cornell University University of Arizona National Climate Data Center Ithaca, N.Y. Tucson, Ariz. Asheville, N.C. ROBERT D. CESS JOHN IMBRIE MICHAEL C. MACCRACKEN Leading Professor H.L. Doherty Professor of Oceanography Physicist and Division Leader State University of New York Department of Geological Sciences Atmospheric and Geophysical Sciences Stony Brook Brown University Lawrence Livermore Laboratory Providence, R.I. University of California HERMAN CHERNOFF Livermore Professor of Statistics Harvard University BERRIEN MOORE Cambridge, Mass. Professor and Director, Institute for the Study of Earth, Oceans, and Space University of New Hampshire Durham POLICY IMPLICATIONS OF GREENHOUSE WARMING - MITIGATION PANEL Chair THOMAS H. LEE Professor Emeritus, Department of Electrical Engineering and Computer Science Massachusetts Institute of Technology, Cambridge PETER BREWER RICHARD GARWIN EDWARD S. RUBIN Monterey Bay Aquarium and Research Thomas J. Watson Research Center Professor, Mechanical Engineering and Center Yorktown Heights, N.Y. Public Policy, and Director, Pacific Grove, Calif. Center for Energy and Environmental JOSEPH GLAS Studies EDITH BROWN WEISS Director, Freon Products Division Carnegie Mellon University Professor of Law E.I. du Pont de Nemours &.Co. Pittsburgh, Pa. Georgetown University Wilmington, Del. Washington, D.C. MILTON RUSSELL (resigned from panel October 1990) KAI N. LEE Professor of Economics Associate Professor University of Tennessee RICHARD N. COOPER Department of Political Science and Knoxville, and Professor of Economics Institute for Environmental Studies Senior Economist Harvard University University of Washington Oak Ridge National Laboratory Cambridge, Mass. Seattle Oak Ridge, Tenn. ROBERT CRANDALL GREGG MARLAND STEPHEN H. SCHNEIDER Senior Fellow Scientist, Environmental Science Division Head, Interdisciplinary Climate Systems Brookings Institute Oak Ridge National Laboratory National Center for Atmospheric Research Washington, D.C. Oak Ridge, Tenn. Boulder, Colo. ROBERT EVENSON JESSICA TUCHMAN MATHEWS EUGENE B. SKOLNIKOFF Professor of Economics Vice President Professor of Political Science Economic Growth Center World Resources Institute Massachusetts Institute of Technology Yale University Washington, D.C. Cambridge New Haven, Conn. ARTHUR H. ROSENFELD THOMAS H. STIX DOUGLAS FOY Professor of Physics and Professor, Department of Astrophysics and Executive Director Director, Center for Building Science Plasma Physics Laboratory Conservation Law Foundation Lawrence Berkeley Laboratory Princeton University Boston, Mass. University of California Princeton, N.J. Berkeley ROBERT A. FROSCH Vice President General Motors Research Labe Warren, Mich. KEYNOTE ADDRESS J. THOMAS RATCHFORD Associate Director for Policy and International Affairs Office of Science and Technology Policy Executive Office of the President AAAS Science and Technology Policy Colloquium Washington, D.C. April 11, 1991 It's great to be back at the AAAS R&D Policy Colloquium, while Allan Bromley is fulfilling a long-standing commitment at Yale University. Having played the role of moderator at this particular session for a decade makes delivering the keynote this year a particular challenge and privilege. I just hope the moderator is as kind to me as I was to earlier speakers on this podium. Let me begin by paying homage to the AAAS and its leadership for continuing and improving this valuable policy forum. The vision of Bill Carey and the sound scholarship and writing skills of Willis Shapley launched this venture on a course that has held true to this day. But like all enduring canons, revealed truth evolves under the influence of latter day prophets. It's heartening to see Al Teich, Steve Nelson and crew laboring away in the AAAS monastery, incorporating the latest prophecies -- or should I say leaked administration documents -- into their science policy scripture. I should add that, from all accounts, Rich Nicholson is a superb father superior. This morning I shall say a few words about Administration R&D budgets and policy intentions. I shall follow the tradition of this distinguished Colloquium that examines budgets and, using the poetic equivalent of a Fourier transform, speaks of policy. You might be interested to know that, in my current line of work, I meet with a fairly large contingent of foreign dignitaries. Perhaps the most common question I receive is "What is U.S. science and technology policy?" My response is that while we have no formal list of science and technology priorities, we do have a general policy of investing in merit-based S&T programs and projects, with the details reflected in the myriad budget decisions that are made each year. If pressed, I point out the AAAS reports do an excellent job of deciphering policy from budget data. I shall try also to provide a few insights as to what life is like in Allan Bromley's White House Science Office. For starters, let me say the environment is exhilerating, in spite of the long hours, daunting work load, and numerous "fire fights" that arise on a daily basis. Some of my friends say that my demeanor doesn't reflect an appropriate level of stress, strain and lost sleep. I just want all of you to know that the rumored explanation I'm adjusting so well because I rested up for this during the previous decade at AAAS is a complete fabrication, with no basis in fact. In my opinion, the environment for science and technology in this Administration is exceptionally supportive. This is not just because President Bush recognizes the importance of science and technology, recruited someone with the stature and talents of Allan Bromley, and gave him the title and perquisites of Assistant to the President. A large number of the President's senior advisors also understand the importance of science and technology, and recognize that R&D budgets are investments in the future. It would be impossible to provide an inclusive list of such folk, but John 2 Sununu and Michael Boskin certainly qualify. On the budget side of the house -- and this is, after all, a colloquium on R&D budgets Dick Darman and his chief lieutenants Bob Grady, Tom Scully, Bob Howard and Janet Hale all recognize the investment character of R&D expenditures. Within OMB, in all four budget directorates, one finds a quality of professional staff with a depth of knowledge and expertise about science, technology, and related research and education issues that is not understood or appreciated in the science establishment. OUTLINES OF THE BUDGET In preparing for this talk, I went back and read Allan's keynote address from last year, and what struck me was how quickly and how much of what he said has come to pass. In particular, both the President's Council of Advisors on Science and Technology and FCCSET - the Federal Coordinating Council for Science, Engineering, and Technology -- are now up and running smoothly. PCAST has been having monthly meetings at the White House, and the President and senior White House officials have been sitting in on portions of almost all those meetings. And several FCCSET committees have had an important influence on this year's budget, as I'll describe in a moment. First, though, let me touch on the budget's overall outlines. As you know, research and development are treated very well exceedingly well in this year's budget. The 13 percent increase for R&D to a total of $75.6 billion represents one of the largest increases for any component of the budget. Furthermore, these proposals are following a year in which the Congressional appropriations for R&D, while not at the levels requested by the Administration, were still quite strong. This increase is all the more remarkable in that it comes under the first year of the new budget agreement, in which real growth in the domestic discretionary budget is essentially limited to the rate of inflation. Cuts, therefore, had to be made in other programs to accommodate increases in research and development, even though many of these other programs have very strong constituencies. In his hearings this spring, Allan has been citing a number of policy rationales for increasing the size of the R&D budget. These include enhancing the science and technology base, strengthening science and mathematics education, resolving social concerns, increasing economic growth, enhancing national security, and promoting international cooperation. But if I were searching for the broadest possible rationale for increasing our support of science and technology, it would be this: The Bush Administration is gradually trying to shift the balance of federal spending more toward investments in the future and away from current consumption. Such a shift is not easy to accomplish in a political setting where consumption translates readily into votes and time horizons rarely extend beyond the next election. But many people, both in the Executive Branch and in the Congress, recognize that we are underinvesting in the future of our 3 nation, and I believe that the Bush Administration is starting to make real progress in shifting the terms of the debate. AREAS OF EMPHASIS IN THE BUDGET In a $75.6 billion budget, there are inevitably going to be many areas of emphasis, and I'll cover just a few. One of the most important is basic research. The budget proposes an 18 percent increase at the National Science Foundation, which would finally return NSF to the doubling track established by President Reagan and supported by President Bush. Furthermore, over 80 percent of that amount would go directly to individual investigators and their research infrastructure, which would ease some of the proposal pressure that has been building in recent years. The increase at the National Institutes of Health -- in absolute terms is even larger than at the NSF: about $500 million, or about 6 percent of the FY 1991 budget. Also, the increase is structured in such a way that funding for research project grants grows by about 9 percent. If these proposals are enacted, NIH will be funding more principal investigators than it ever has in the past. Together, NSF and NIH support over half of the federally-funded basic research done in the United States, and over 75 percent of the federally-funded basic research done in universities. By focusing special attention on these agencies, the Administration is seeking to strengthen what Allan often refers to as the heart and backbone of American science and technology. COMPETITION AND EXCELLENCE Yet it should be remembered that we will never fully satisfy the needs of university researchers for funds nor should we. Competition remains an indispensable part of a system based on excellence. The challenge is to balance competition with the needs of the nation and with the many opportunities that now exist within science. Some in the scientific community have been calling for increases in the support of basic research that far exceed what has been proposed. The glib answer to such calls is that, given the new budget agreement, such increases are politically impossible in the next few years. But there is a more substantive reply. Compared with other countries, the United States invests very heavily in basic research. In fact, I think it can be said that many other countries do not pay their fair share of the amounts needed to increase the world's storehouse of knowledge. This can be seen quite clearly in the preference of students and senior scientists alike to come to the United States to work and study. Nowhere else can they find better institutions, better support, and the intellectual excitement vital to forefront research. 4 However, in an age of instant communications and well-traveled and competitive scientists, the comparative advantage from doing basic research and carrying the resulting new knowledge into commercial and military products is not as large as it once was. We, therefore, have to take the actions of other countries into account in making decisions about how to support basic research. This is also a consideration in another major area of emphasis in the budget technology development. The budget includes increased funding for a number of generic precompetitive technologies, including high performance computing and communications, biotechnology, advanced manufacturing and materials, and aeronautics. In fact, the budget goes so far as to state that it is providing increased funding "for all major civilian applied R&D areas." This is an important measure of the Administration's intentions. We see the government as having a vital role in the development of technologies up to the point at which the private sector can recognize the promise of those technologies and act to convert them into valuable products and processes. This was one of the important messages contained in the document U.S. Technology Policy released by OSTP last September. FCCSET AND THE PRESIDENTIAL INITIATIVES The budget also includes three special Presidential initiatives in science and technology, each of which is based on the work of a committee under FCCSET. The initiatives are in high-performance computing and communications -- an important example of the generic technologies I just mentioned global change, and education and human resources. Let me use education as an example of the FCCSET process, since this was the initiative with which I was most directly involved. Over this last year, FCCSET's Committee on Education and Human Resources -- which is chaired by Admiral James Watkins, the Secretary of Energy -- did a thorough budgetary and programmatic review of science, mathematics, engineering, and technology education at all levels, from grade school to graduate school. The committee found, first of all, that much more was being done at the Federal level than anyone had expected. In Fiscal Year 1991, the federal government directly spent about $1.7 billion in these areas, with graduate and precollege education receiving the largest sums and undergraduate education receiving somewhat less. The committee then sought to establish strategic objectives and funding priorities for federal programs in these areas. It decided, for example, that the greatest priority was precollege education, both for the training of new scientists and engineers and for the general scientific and mathematical literacy of the public. Within precollege education the committee cited teacher preparation and enhancement as the most important thing the federal government can support. The work of the committee has met with great success within the federal government. For one, the budget proposes a 13 percent increase in the programs covered by the 5 committee. But many program managers and agency heads have noted the way in which this committee, and the two other committees doing budgetary crosscuts, were able to bring great coherence to what had formerly been a confusing welter of federal programs. Watching the operations of a revitalized and reorganized FCCSET has been very fascinating to me. For well over a century, observers of science have debated whether the federal effort in science and technology would be more efficient if it were all conducted by a single department -- a Department of Science and Technology. I do not believe that it would. I believe that the diversity of the present system, in which researchers have more than one source of funding for their ideas, has contributed greatly to the strength of American science and technology. But it remains true that more than a few areas of federal science and technology need more coordination. In science and mathematics education, for example, many senior people working on very similar subjects but in different agencies had never even met each other. FCCSET offers a way to bring these people together with a common set of objectives. It offers a way to integrate science programs while maintaining the advantages of pluralism. If I were asked to name the most important thing that Allan has done since becoming head of OSTP, I would answer his recognition and implementation of the full potential of the FCCSET process. SUPPORT FOR "BIG SCIENCE" As you know, the budget also provides increased support for a number of what have been called "big science" projects. Actually, I don't find this to be a very illuminating or helpful label. Many big science or "megaprojects" are actually coordinated programs of research being done by individual investigators, whether at one place or in separate locations such as the human genome project or astronomy research. Other megaprojects most notably the space station -- are not primarily science projects. For that matter, all megaprojects -- by virtue of their being big -- are subject to important nonscientific influences. Nor is it true, as some have said, that the Administration has never seen a large science project that it does not like. Many, many more projects are proposed to and by the agencies than ever make it into the budget. In its final form, the budget actually represents a cascade of priority decisions that are made over the course of its preparation. One important consideration in many of these projects has been the growing role of the Congress in shaping them. Last year's budget for NASA is a good example. The FY 1991 House appropriations report for NASA established an upper limit on the funding profile for development of a redesigned space station of no more than 10 percent growth per year, with a peak-year funding of no more than $2.6 billion. What this means is that the funding for the program will not follow a least-cost construction path, based primarily on technical and engineering considerations. 6 Rather, future funding is on a predetermined course, and NASA has to adapt to that. In a deeper sense, what this reflects is Congress's growing recognition that it is facing a zero-sum game not only in any given year but in the outyears. The headroom available in the past to provide for outyear increases in new program starts is no longer available. This raises some very important questions which have not yet been completely worked out regarding the projects already under way and those now being planned for the next few years. INTERNATIONAL COOPERATION I might point out, as an aside, that there is a way around the zero sum game, and that is to view large scientific projects on an international rather than a national basis. Our office has been doing a great deal of work on this subject over the past year and a half, with some progress being made. The policy rationale for international cooperation is clear: large scientific projects are now becoming too expensive for any one country to afford, but they produce knowledge and technologies that are of value to many countries. All countries are, therefore, generally better off if they work together. The question is how to carry out this cooperation. A FCCSET committee the Committee on International Science, Engineering, and Technology - has been looking at this question, and Allan has held discussions with a number of science advisors from other countries to examine the issue. PCAST also has a panel on this subject to provide input from the private sector, which is vitally interested in these projects. We expect that these efforts will enable us to engage in a deeper dialogue with the science ministers from the OECD nations next year. Many difficult issues still need to be resolved. Let me give you an example. Seven years ago at this colloquium, Reimer Lüst, spoke. He was then President of the Max Planck Society in Germany and President-elect of the European Space Agency (ESA). I remember his luncheon address very well, because I arranged for it at the last minute. Last fall I visited Lüst in Paris at ESA headquarters, just as he was ending his term. Unfortunately for me, it was just a few days after Senate Appropriations had whacked $850 million off the funding for the Space Station. Lüst is a good friend and normally a very gentle person, but his message to me that day was anything but gentle. He said that I may not realize what is happening, but if the United States backed out on the Space Station agreement it would kill European cooperation with the United States in high energy physics, in fusion, in virtually every other major area of science and technology. He advised that for our own good, we should not do it. We have to take feelings like this into account as we approach international cooperation in the basic sciences. 7 CONGRESSIONAL EARMARKING OF FACILITIES I said earlier that Congress is becoming much more involved in the shaping of large science projects. There is another area in which they are becoming more involved in R&D budgets as well through the earmarking of funds for R&D and for R&D facilities. This year the budget request includes an analysis done by our office showing that Congress earmarked over $800 million in FY 1991 for R&D projects and R&D facilities, with over $400 million of this amount going to academic institutions. This is a substantial amount of money, and it has sharply increased in recent years. Earmarking typically supports projects that do not undergo merit review, and thus there is no way to judge their quality. Furthermore, earmarking seriously undermines the ability of the Administration to set priorities, because it greatly increases the uncertainty regarding Congressional action on the requests we send to the Hill. Many people have been asking in recent years what can be done to reduce the pressures to earmark. Personally, I think that the behavior of the Congress is unlikely to change. Members of Congress are simply doing what they were elected to do when they respond to constituent requests. Rather, I believe that much of the responsibility for dealing with the large and increasing levels of earmarking in Congressional appropriations rests with the university community. What is needed, therefore, is for the academic research community to foreclose the comparative advantage sought by those in their ranks who aggressively pursue pork barrel funding at the expense of their fellow institutions who support the principle of merit review. There are several ways to do this, but I have time to note just one. Neither NSF nor NIH, two agencies central to the support of academic research, have significant funds earmarked for R&D or R&D facilities in their budgets. If the academic community were to unite behind a simple prohibition of NSF or NIH funding to any university that accepts earmarked funds, the atmosphere at both ends of Pennsylvania Avenue would, no doubt, change dramatically. It would remove an important part of the uncertainty that now overhangs Administration formulation of budget priorities. And it could allow for the kind of reasoned consideration of the issues affecting academic research institutions that this country critically needs. This is an important problem. Think about it. CONCLUSION These are some of the issues that have been occupying our thoughts in putting together this year's budget and in presenting it to the Congress. But as you well know, a lot can happen to a budget by the time it travels along Pennsylvania Avenue and emerges from the Hill. Congress can take a much different view of the R&D 8 budget than does the Administration. And in some cases both of us are subject to forces beyond our control. The situation reminds me of a story that is popular in our house, since my wife come from "a tennis family," and our children and I are participants in the sport. It's about a man who was totally obsessed with tennis; he lived, breathed, ate, and slept tennis. But there was one thing that worried him more than anything else. Was there tennis in heaven? Finally, he decided to get an answer once and for all by going to a highly- recommended fortune teller, Madame Helga. So he went down a seedy sidestreet in the city, found Madame Helga's office, and put the question to her: Is there tennis in heaven? "This is one of the most difficult questions I've ever been asked," she replied. "I will have to consult on it overnight. Come back tomorrow and I will have your answer, and bring your checkbook because it's going to be very expensive." So the next day the man returned to Madame Helga and paid the very large fee that she demanded. She then said, "I have good news and bad news. Which would you like first?" The man replied, "Well, tell me the good news." "There is indeed tennis in heaven," the fortune teller said. "In fact, there are tennis courts as far as the eye can see. There are grass courts, clay courts, and hard surface courts. There's never a waiting list, ball boys are assigned to every court, and God himself plays in some of the tournaments. "That's amazing," the man said. "So what's the bad news." "Well you're scheduled for doubles at 4:00 this afternoon." There are difficult questions facing us in the months and years ahead, and we may not be pleased with all the answers. There will be some good news, and there will be some bad news. But if we keep in mind that the public supports science and technology because it pays off and we keep reminding our neighbors and our representatives in Congress of that fundamental fact - R&D budgets will continue to prosper. In the meantime, I think we can look forward to a good year for science and technology. THE WHITE HOUSE WASHINGTON April 16, 1991 Dear David: I am pleased that you will have the opportunity to testify on the subject of academic research facilities. As you know, the Administration is still discussing this issue. We may eventually wish to take up the issue in PCAST but, for the time being, I think that your individual testimony can serve us well by outlining and reiterating the fundamental issues which impinge on the health of our university research system. Fundamentally, I think that the points we made in our 1986 "Packard-Bromley Report" still hold and that the recommendations we made pertaining to the academic infrastructure deserve to be underscored once again: 1) the cost of maintaining infrastructure is an integral part of federally sponsored research costs; 2) catch-up funding (merit-based and shared equally with non-Federal sources) is needed to correct the serious deterioration of our university infrastructure caused by years of deferred capital investments; and 3) use allowances on facilities and equipment should be based on more realistic depreciation rates. Since the issuance of our report, many other voices have joined the debate and additional reports have supported our findings. For example, the 1988 Cornelius Pings report on indirect costs, prepared for the AAU, put forth a recommendation similiar to our own that the useful life of facilities be reduced from 50 years to 20 years and that equipment be amortized over 4 to 7 years (we had suggested 5 to 10 years) from the current 15 years. Most recently, in February 1991, the GUIRR issued an options paper on Research Facility Financing that also suggests increasing the rate of reimbursement as an option. Incidentally, the Roundtable estimates very roughly that such an adjustment would cost the Federal Government about $100 million per year. You may recall that, since the issuance of our report, NSF established a modest research facilities program at an approximate annual level of $20 million. In January of this year NSF announced 78 awards totaling $39 million to institutions in 37 states. The recipient institutions agreed to cost-share about $61 million from institutional, state, and other sources. In the Administration's FY 1992 budget request, no funds have been requested for the research facilities program because of a higher-priority $50 million NSF research instrumentation initiative. However, the FY 1992 request does includes a $25 million buildings and facilities program at the Department of Agriculture as part of its National Research Initiative. In 1988 and 1990, the NSF Research Facilities Office surveyed the state of research facilities in the United States, and its findings are supportive of those in our own report. The 1988 survey revealed a reported research facility capital project need of $11.6 billion ($8.1 billion in new construction and $3.5 billion in repair and renovation). In the 1990 survey, the total reported need had increased to $15.6 billion ($10.6 billion for new projects and $5.0 billion for repair and renovation). Of the $15.6 billion, institutions were planning to spend $3.6 billion on capital projects, deferring $12 billion indefinitely ($8 million for new construction and $4 billion for repair and renovation.) The OTA report on "Federally Funded Research: Decisions for a Decade," released just last week, touches on the issue of academic facilities. The report does not make recommendations in this regard but raises the issue of "how much is enough?", distinguishing between necessarily subjective definition of "need" (as surveyed by NSF) and the more quantifiable notion of "demand" (as evidenced, for example, by the number of proposals submitted to the NSF facilities program.) We at least have a sense of the order of magnitude of what is needed to remedy the university facilities situation. As long as our resources fall short of the needs, the more difficult and more immediate questions are how to allocate the resources we might be able to muster. For example, should we emphasize new construction or repair and renovation? Should we concentrate resources on a limited number of institutions (and, if so, which types), or should we spread our resources more widely? In your testimony, you may wish to note that improving our current infrastructure rather than expanding it is our best option. This could be accomplished by emphasizing repair and upgrading of current facilities rather than building new facilities. On the whole, it would probably be wise to confine the bulk of your remarks to the "Packard-Bromley Report". A number of trends are currently accelerating in Washington, including the earmarking and indirect cost issues, which you probably will not want to get into at this time. I am sending you excerpts of some of the reports I have mentioned. I hope that the information will be useful to you. Sincerely, Allan D. Allan Bromley Assistant to the President for Science and Technology The Honorable David Packard Chairman of the Board Hewlett-Packard Company 1501 Page Mill Road Palo Alto, California 94304 OTA REPORT Federally Funded Research: Decisions for a Decade April 1991 Advisory Panel Bernadine Healy, Panel Chair Chairman, Research Institute, Cleveland Clinic Foundation William Carey Herman Postma Consultant to the President Senior Vice President Carnegie Corp. Martin Marietta Energy Systems Purnell Choppin Larry Smarr President Director Howard Hughes Medical Institute National Center/Supercomputer Applications University of Illinois, Urbana Herbert Doan Consultant Amy Walton Midland, MI Manager Science Data Analysis and Computing Laboratory Gertrude Elion Jet Propulsion Laboratory Scientist Emeritus Burroughs Wellcome Sheila Widnall Abby Mauze Rockefeller Professor of Robert Fossum Aeronautics and Astronautics Professor, Electrical Engineering Massachusetts Institute of Technology Southern Methodist University George Wise S. Allen Heininger Specialist-Communications Corporate Vice President General Electric Monsanto Co. Donald Holt Ex-Officio Members Director Ted G. Berlincourt Illinois Agricultural Experiment Station Director Research and Laboratory Management Todd LaPorte Office of the Secretary of Defense Professor of Political Science University of California, Berkeley James Hays Acting Senior Science Advisor Leon Lederman National Science Foundation Professor of Physics Ruth L. Kirschstein University of Chicago Director Cora Marrett National Institute of General Medical Sciences Professor of Sociology National Institutes of Health University of Wisconsin, Madison F. Karl Willenbrock William Massy Assistant Director Vice President for Finance Scientific, Technological and International Affairs Stanford University National Science Foundation Alan McGowan Sister Agency Member President Richard Rowberg Scientists' Institute for Public Information Director, Science Policy Research Division Robert Myers Congressional Research Service Assistant Professor of Agronomy Library of Congress University of Missouri, Columbia NOTE: OTA appreciates and is grateful for the valuable assistance and thoughtful critiques provided by the advisory panel members. The panel does not, however, necessarily approve, disapprove, or endorse this report. OTA assumes full responsibility for the report and the accuracy of its contents. iv OTA EXCERPTS Summary and Issues for Congress 9 ting Table 2-Federally Funded Research in the 1980s and 1990s (In percent) Fiscal year 1980 Fiscal year 1991 (est.) S of R&D as percent of total Federal budget 5.0 Total research as percent of Federal R&D 4.7 by 38.9 Basic research as percent of Federal R&D 36.3 15.7 n be Basic research as percent of total Federal budget 19.1 0.8 0.9 are eas- Agency Fiscal year 1980 Fiscal year 1991 (est.) vhat Percent of total (basic) research funds distributed, by agency HHS/NIH 29/24 (38/35) 34/29 (40/37) DOD 20 (12) tute 15 (8) NASA 14 (12) 16 (15) her, DOE 11 (11) 12 (14) ible NSF 8 (17) 9 (15) USDA the 6 (6) 5 (5) Other 7 (4) 10 (4) ent, SS. Performer Fiscal year 1980 Fiscal year 1991 (est.) Percent of total (basic) research funds, by performer Universities 32 (50) 36 (47) Federal 32 (25) 30 (23) reat, Industry 18 (7) 15 (9) iter- Nonprofits 6 (6) 8 (9) and FFRDCs® 11 (11) 11 (12) is in Ranking Fiscal year 1980 Fiscal year 1988 estle Percent distribution of Federal R&D funds at academic institutions Top 10 25 25 spe- Top 20 40 39 sci- Top 50 68 65 Top 100 84 the 85 KEY: DOD=U.S. Department of Defense; DOE=U.S. Department of Energy; FFRDC=Federally Funded Research and Development Center; USDA=U.S. and : the NASA-National Aeronautics and Space Administration Department of Agriculture; NSF=National Science Foundation; HHS/NIH-U.S. Department of Health and Human Services/National Institutes of Health; The category of FFRDCs includes all Federally Funded Research and Development Centers that are not administered by the Federal Government. 1 set NOTE: R&D data are based on Federal obligations; calculations involving the total Federal budget are based on outlays. Columns may not sum to 100 percent due to rounding. ress each SOURCES: Office of Technology Assessment, 1991, based on National Science Foundation data; U.S. General Accounting Office data; Economic Report of the President (Washington, DC: U.S. Government Printing Office, 1991); and Budget of the United States Government: Fiscal Year 1992 (Washington, DC: U.S. Government Printing Office, 1991). face here Issues and Options for Congress :s for earch Although priority setting occurs throughout the Federal Government, it falls short in three man earch ways. First, criteria used in selecting various ysis, ISSUE 1: Setting Priorities in the areas of research and megaprojects are not mak- Support of Research made explicit and vary widely from area to gres- area. This is particularly true, and particularly ublic Summary a problem, at the highest levels of priority e is setting, e.g., in the President's budget and the Priorities are set throughout the Federal congressional decision process. Second, there Government at many levels. At the highest is currently no mechanism for evaluating the search level, research priorities are compared to total research portfolio of the Federal Govern- ources nonscience and nonengineering needs. At the ment in terms of progress toward many na- Effect next level, priorities are set across research tional objectives, although recent efforts by the fields, such as biomedicine and mathematics. Office of Science and Technology Policy have report, Federal Within fields, agency programs reflect re- search opportunities in subfields and relevance lead to some cross-agency planning, budget- try site ing, and evaluation. Third, the principal criteria figure to national needs. Finally, research projects are for selection, scientific merit and mission compared, ranked, and awarded Federal funds. relevance, are in practice coarse filters. Con- 20 Federally Funded Research: Decisions for a Decade research priorities, especially at the macro level.³ research system, competition drives up de- Whether their exhortations lead to clearer research mand for funding, because success in the agendas (including the suspension or postponement research environment often correlates highly of some activities) remains to be seen, and whether with the financial resources of research groups. these investments are balanced, well-managed, and yield the desired consequences is hard to judge in Direct cost containment by the research real time. But surely the policy process is enriched agencies may not be an appropriate Federal by drawing a map of the choices, the benefits, and role, although Congress might direct the agen- the costs to be incurred by the scientific community cies to pursue specific measures at their discretion and to evaluate their effectiveness. and the Nation. Instead, greater cost-accountability could be ISSUE 2: Understanding Research encouraged by the executive branch and Con- gress. In particular, the Federal Government Expenditures should seek to eliminate the confusion around Summary allowable indirect costs, and develop better estimates of future expenditures, especially for Many in the scientific community claim that megaprojects where costs often escalate rap- the "costs of doing research" are rising idly. quickly, especially that the costs of equipment and facilities outpace increases in Federal Discussion research funding. The most reliable data are available from research agencies, and can be Many researchers state as an overriding problem analyzed at two levels: 1) total Federal expend- that the "costs of doing research" have risen much faster than inflation in the Gross National Product itures for research, and 2) individual compo- nents of research project budgets. OTA finds (GNP), and Federal expenditures for research have that Federal expenditures for research have not kept pace with these rising costs. Included in the risen faster than inflation, and more research- costs of research are salaries, benefits, equipment, ers are supported by the Federal Government facilities, indirect costs, and other components of than ever before. Salaries and indirect costs research budgets. Equipment and facilities are typi- account for the largest and fastest growing cally named as most responsible for increased costs.⁴⁰ share of these expenditures. However, these findings do not truly address the claims ex- However, addressing these claims is difficult, pressed above, because of the numerous and because it is hard to define what is meant by the costs sometimes inconsistent meanings of the costs of doing research. Research activities become of doing research. cheaper to complete with time, as long as the scope Most research activities become cheaper to of the problem and the standards of measurement do complete with time, as long as the scope of the not change. But this is not the way progress is made. problem and the standards of measurement do Advances in technology and knowledge are "en- not change. However, advances in technology abling": they allow deeper probing of more complex and knowledge are "enabling": they allow problems. This is an intrinsic challenge of research. deeper probing of more complex scientific There is an extrinsic challenge as well. Experi- problems. Experiments are also carried out in ments are carried out in an environment that is an environment driven by competition. While driven by competition. Competition is part of the competition is part of the dynamic of a healthy dynamic of a healthy research system. One sign of a 39In addition to those cited previously, see Robert M. Rosenzweig, President, Association of American Universities, "Address to the President's Opening Session, The Gerontological Society of America," 43rd annual meeting, Boston, MA, Nov. 16, 1990; John H. Dutton and Lawson Crowe, "Setting Priorities Among Scientific Initiatives," American Scientist, vol. 76, No. 6, November-December 1988, pp. 599-603; Albert H. Teich, "Scientists and Public Officials Must Pursue Collaboration To Set Research Priorities," The Scientist, vol. 4, No. 3, Feb. 5, 1990, pp. 17; and Tina M. Kaarsberg and Robert L. Park, "Scientists Must Face the Unpleasant Task of Setting Priorities," The Chronicle of Higher Education, vol. 37, No. 23, Feb. 20, 1991, p. A52. 40See Janice Long, "Bush's Science Advisor Discusses Declining Value of R&D Dollars," Chemical and Engineering News, vol. 68, No. 17, Apr. 23, 1990, pp. 16-17; Science: The End of the Frontier?, op. cit., footnote 14; and OTA interviews at the University of Michigan and Stanford University, July-August 1990. OTA Summary and Issues for Congress 21 de- healthy research system is that it can expand to the number of Ph.D. scientists are employed in the the produce more research. "Needs" in the research academic sector. 43 By these measures, science has hly environment are thus open-ended. grown more productive (and consequently the cost ips. per-unit output of research has decreased). 44 How- Although competition exists in the research com- ever, there is no metric to compare a "unit" of rch munity, it does not necessarily drive down costs, as today's research with one in the past. eral would be expected in typical "markets." In an en- earlier era, the chief cost of research was the annual Thus, "Are the costs of research going up?" is not heir salary of the principal investigator (PI). Today, the a useful question for policy purposes. Research ess. PI is often the head of a team with many players and expenditures by the Federal Government are be access to the latest research technologies. In the face awarded and accounted for on an annual basis. What on- of inherent uncertainty about the eventual outcomes gets included in these expenditures can be modified ent of research,⁴¹ sponsors must apply various criteria in by adjusting the scale and pace of scientific research. und predicting the likelihood of eventual project success, Especially for basic research, these factors are tter such as access to sophisticated equipment or the variable, though the competition for personal and for availability of appropriately trained personnel. institutional recognition pushes PIs toward larger ap- These criteria are often associated with higher rather teams and more sophisticated instrumentation. In than lower costs. Success, therefore, often comes to mission-oriented science, the rate of research may be those who spend the most (especially if research dictated by pressing concerns (e.g., curbing the teams are relatively evenly matched). In fact, com- AIDS epidemic is desired as quickly as possible). roblem petitive proposals are often the most expensive and low bids can actually decrease a proposer's chance For policy purposes, research costs equal expen- 1 much of winning a grant. Because additional personnel ditures: if the Federal Government provides more roduct h have and sophisticated equipment are seen by sponsors as funds, "costs" will go up accordingly. A more being instrumental in the conduct of research, costs useful policy question might be: "Is Federal spend- 1 in the pment, are ultimately limited by what sponsors are willing ing on individual components of research project to spend. budgets reasonable?" The Federal Government will ents of tend to have a different point of view on this question re typi- Products, or "outputs," of scientific research from the research performer. OTA has explored both creased have also traditionally defied measurement.⁴² Con- perspectives. sequently, the price of research measured in eco- ifficult, nomic terms-the cost per-unit output-is ex- Incomplete and murky data on research expendi- e costs tremely difficult to estimate. Analysis using crude tures complicate questions on the costs of research. measures of scientific "productivity" suggests that Analysis of Federal expenditures for the conduct of ecome the cost of producing a published paper or perform- research must factor what Federal agencies are e scope nent do ing a given scientific measurement has decreased: willing to spend for personnel, facilities, and instru- S made. with less than double the investment per year since mentation, while analysis of expenditures by re- re "en- 1965, more than double the number of papers are search performers is confounded by the expenditure omplex published today in academia, and more than double accounting schemes that vary from research institu- esearch. Experi- 41See, for example, Richard Nelson, "The Allocation of Research and Development Resources: Some Problems of Public Policy," Economics OJ that is Research and Development, Richard Tybout (ed.) (Columbus, OH: Ohio State University Press, 1965), pp. 288-308. Nelson points out that research and development has economic value because the information permits people to do things better, and sometimes to do things that they did not know t of the how to do before. [but] there is no simple way to evaluate the benefits society can expect from the knowledge created by different kinds of R&D ign of a (pp. 293-294). Also see Mansfield, op. cit., footnote 3. ⁴²Published papers and patents have been used as proxies, but they cannot be standardized. See Susan E. Cozzens, "Literature-Based Data in Research President's Evaluation: A Manager's Guide to Bibliometrics," final report to the National Science Foundation, Sept. 18, 1989. son Crowe, ⁴³On the former, see H.D. White and K.W. McCain, "Bibliometrics," Annual Review of Information Science and Technology, voi. 24, 1989, pp. 1 H. Teich, 119-186; and on the latter, National Science Board, op. cit., footnote 12, tables 5-17 and 5-30. nd Tina M. ⁴⁴However, even if one acccepts these definitions of research output, the productivity of research relative to other economic activities might still be 37, No. 23, stagnant. Economist William Baumol explains that research, due to the price of labor rather than increases in its productivity, has an " inherent tendency to rise in cost and price, persistently and cumulatively, relative to the costs and prices of the economy's other outputs." He warns that the o. 17, Apr. consequence may be an impediment to adequate funding of R&D activity, that is, to a level of funding consistent with the requirements of economic University, efficiency and the general economic welfare." See W.J. Baumol et al., Productivity and American Leadership: The Long View (Cambridge, MA: MIT Press, 1989), ch. 6, quotes from pp. 116, 124. OTA 22 Federally Funded Research: Decisions for a Decade Figure 8-Estimated Cost Components of U.S. Academic R&D Budgets: 1958-88 (in billions of 1988 dollars) 6 6 SOURCE: Government-University-Industry Research Roundtable, Sci- ence and Technology in the Academic Enterprise: Status, Trends and Issues, (Washington, DC: National Academy Press, 1989), figure 2-43. 5 5 NOTE: Constant dollars were calculated using the GNP Implicit Price Deflator. DEFINITION OF TERMS: Estimated personnel costs for senior scientists and graduate students include salaries and fringe benefits, such as 4 4 insurance and retirement contributions. Other direct costs include such budget items as materials and supplies, travel, subcontractors, computer services, publications, consultants, and participant support costs. Indirect costs include general administration, department 3 3 administration, building operation and Imaintenance, depreciation and use, sponsored-research projects administration, libraries, and stu- dent-services administration. Equipment costs include: 1) reported expenditures of separately budgeted current funds for the purchase of research equipment, and 2) estimated capital expenditures for fixed or 2 2 built-in research equipment. Facilities costs include estimated capital expenditures for research facilities, including facilities constructed to house scientific apparatus. DATA: National Science Foundation, Division of Policy Research and 1 1 Analysis. Database: CASPAR. Some of the data within this database are estimates, incorporated where there are discontinui- ties within data series or gaps in data collection. Primary data source: National Science Foundation, Division of Science Resource 0 Studies, "Survey of Scientific and Engineering Expenditures at 0 Universities and Colleges"; National Institutes of Health; American 1958 1963 1968 1973 1978 1983 1988 Association of University Professors; National Association of State Universities and Land Grant Colleges. Senior Graduate Other direct scientists students Indirect Equipment Facilities Trends in Components of Total Federal Research Expenditures tion to research institution. 45 In addition, much of Analyzing Federal expenditures for specific line the current debate over rising expenditures takes items of research budgets reveals interesting trends place within a context of agency budget constraints (again see figure 8). First, reimbursements for and pressures felt by research performers. indirect costs are the fastest growing portion of Federal research expenditures. Indirect costs is a The most reliable data on Federal research expen- term that stands for expenses that research institu- ditures are available from research agencies, and can tions can claim from the Federal Government for be analyzed at two levels: 1) total Federal expendi- costs that cannot be directly attributed to a single tures for research, and 2) individual components of research project, i.e., they are distributed over many research project budgets. OTA finds that total investigators who share research infrastructure and expenditures on individual components of grants administrative support. Federal support for indirect have risen over inflation, but not nearly at the rate for costs has increased since the 1960s, with the largest total Federal expenditures for research (see figure 8). increases in the late 1960s and the 1980s. In 1958, Instead, growth in the size of the research work force indirect cost billings comprised 10 to 15 percent of supported by the Federal Government seems to Federal academic R&D funding. By 1988, that share account for the largest increase in Federal research had risen to roughly 25 percent.⁴ In addition, some expenditures. Also, the largest component increases agencies allow more than other agencies in indirect of research project budgets are for salaries and costs. For example, in 1988, the indirect cost as a indirect costs. percent of the total R&D expenditures allowed at ⁴⁵For an attempt to compare expenditures at two public and two private universities associated with the performance of National Science Foundation-funded research, see G.W. Baughman, "Impact of Inflation on Research Expenditures of Selected Academic Disciplines 1967-1983," report to the National Science Foundation and the National Center for Educational Statistics, NSF/PLN 8017815, Nov. 8, 1985. Also see Daniel E. Koshland, vol. 249, July 6, 1990, pp. 10-13. "The Underside of Overhead, Science, vol. 249, May 11, 1990, p. 3; and "The Overhead Question," letters in response to Koshland's editorial, Science, ⁴⁶National Science Foundation, The State of Academic Science and Engineering (Washington, DC: 1990), p. 121. OTA Summary and Issues for Congress 23 (1988 dollars) in 1981 to more than $70,000 in 1988. In the same period, the number of full-time equiva- Sci- atus, lent scientists and engineers employed in academic ress, settings rose steadily from about 275,000 to almost 340,000.4⁸ Price Third, Federal support for academic research ntists ch as equipment alone increased from $0.5 billion in 1968 clude (1988 dollars) to $0.9 billion in 1988. Despite tors, oport pronounced increases and improvements in equip- ment hand ment stocks in the 1980s, 36 percent of department 1 stu- heads still describe their equipment as inadequate (to orted conduct state-of-the-art research). This is in part due se of edor to the reduction in the obsolescence time of equip- pital ment and instrumentation use since the late 1970s.4 ad to and Finally, the Federal share of all capital expendi- this tures for academic facilities (which include both tinui- data research and teaching facilities) has never topped urce one-third. Now it is less than 10 percent. 50 For is at rican Photo credit: Bob Kalmbach, University of Michigan university research facilities alone, the Federal State Government provided an estimated 11 and 16 These scientists are in an ion beam laboratory at the University of Michigan. Research often requires state-of- percent, respectively, of private and public univer- the-art equipment. sity capital expenditures in 1988-89. The govern- ment also supports research facilities through depre- NIH was 30 percent, whereas it was less than 24 ciation, operation, and maintenance charges percent for NSF (a proportion unchanged since the accounted for in the indirect cost rate. In 1988, the mid-1980s).47 Federal Government supplied nearly $1 billion to line nds Second, increasing numbers of investigators and support university infrastructure. Almost 20 percent rising salaries (and the benefits that go with them) was for facilities depreciation, while the rest was for of have driven up the price of the personnel component recovered for operation and maintenance costs. 51 S a of direct costs. University personnel speak of the Academic administrators claim that with growing itu- increased competition for faculty with other sectors frequency, aging laboratories and classroom build- for of the economy, and note that faculty salaries have ings falter and break down,⁵² and many claim that agle been rising significantly over inflation during the facility reinvestment has not kept pace with growing any last decade. The average total compensation (sala- needs. However, the picture is not clear. For and ries and benefits) for academic Ph.D.s in the natural example, when asked by NSF, a majority of the rect sciences and engineering increased from $59,000 research administrators and deans at the top 50 gest 58, ⁴⁷Tbid., p. 142; and Association of American Universities, Indirect Costs Associated With Federal Support of Research on University Campuses: Some Suggestions for Change (Washington, DC: December 1988). t of 4$Government-University-Industry Research Roundtable, Science and Technology in the Academic Enterprise: Status, Trends, and Issues are (Washington, DC: National Academy Press, October 1989), pp. 2-34 and 2-47, based on National Science Foundation data. me ⁴⁹National Science Foundation, Academic Research Equipment in Selected Science/Engineering Fields: 1982-83 to 1985-86, SRS 88-D1 rect (Washington, DC: June 1988). is a 50For public universities, 50 to 60 percent of the facilities funds come from the States, and 30 percent from bond issues. For private universities, roughly 1 at one-third comes from the Federal Government, while another one-third is from donations. See Michael Davey, Bricks and Mortar: A Summary and Analysis of Proposals to Meet Research Facilities Needs on College Campuses (Washington, DC: Congressional Research Service, 1987). ⁵¹Over the period 1982 to 1988, the Federal support of university infrastructure grew by over 70 percent in real terms. These figures are presented ence in "Enhancing Research and Expanding the Human Frontier," op. cit., footnote 26, pp. 61-62. The document further states that: "Each academic eport land, institution grants.' The must provide a certification that its research facilities are adequate (to perform the research proposed) as a condition of accepting research $12 billion of needed, but unfunded capital projects. reported in the National Science Foundation surveys of universities not had an apparent effect on the ability of universities to accept Federal research funds." has ence, ⁵²Karen Grassmuck, "Colleges Scramble for Money to Reduce Huge Maintenance Backlog, Estimated to Exceed $70 Billion; New Federal Help Seen Unlikely," The Chronicle of Higher Education, vol. 37, No. 6, Oct. 10, 1990, pp. A1, A34. OTA 24 Federally Funded Research: Decisions for a Decade research universities replied that their facilities were ity in expenditures for performers (e.g., researchers "good to excellent," whereas a majority of the could be encouraged to use the money saved one research administrators and deans in the schools year in the next year, a so-called no-cost extension). below the top 50 estimated that their facilities were Within such cost-accountability measures, Congress "fair to poor.' might also direct the agencies to experiment with The crux of the facilities problem is that research cost-containment schemes and to evaluate their and academic centers can always use new or effectiveness. renovated buildings, but how much is enough? Even Greater cost-acountability is especially important though "need" may not be quantified in the in the calculation of indirect cost rates. At present, different sectors of the research enterprise, a demand the guidelines for calculating costs are detailed in certainly exists. For example, when NSF solicited conjunction with OMB Circular A-21 and have been proposals for a $20 million program in 1989 to in force since 1979. Every major research university address facilities needs, it received over 400 propos- has an indirect rate established for the current fiscal als totaling $300 million in requests.54 year for recovery of costs associated with sponsored Federal Policy Responses to Increased Demand research. These rates have evolved over many years as a result of direct interaction and negotiation with Many Federal agencies have experimented with the cognizant Federal agency. There is a wide range grant-reducing measures, such as the salary caps of indirect costs rates among universities, with most required by Congress and temporarily imposed by noticeable differences between public and private NSF and NIH, the ceilings on indirect costs currently institutions (rates tend to be higher at private in place at USDA, the elimination of cost-blind institutions). Rates vary because of: 1) significant reviews of proposals in some research programs at differences in facilities-related expenditures, 2) un- NIH, the limitation of funds supplied in new grants derrecovery by some universities, 3) imposition of to researchers with multiple Federal grants at the limits by some government agencies in the negotia- National Institute of General Medical Sciences, and the institution of fixed-price grants in some NSF tion process, and 4) diversity in assigning compo- nent expenditures as direct or indirect.⁵⁶ programs. 55 Congress could pursue permanent grant-reducing measures to slow or limit increases in However, confusion around what is contained in research expenditures on individual research grants. the indirect cost rate is getting worse, not better. This However, it may not be an appropriate Federal role reflects, in part, the difficulty of separating expendi- to dictate specific allowable costs in research tures along lines of research, instruction, and other projects. In general, allowing market forces to functions. 57 Recent investigations by the Office of determine costs has been a tradition in Federal Naval Research and the House Committee on policy. Energy and Commerce have also uncovered signifi- Instead, greater cost-accountability could be en- cant variation in the accounting of indirect costs by the cognizant Federal agencies and research univer- couraged. One benefit of cost-accountability could sities. 58 These differences should be sorted out, and be incentives for performers to spend less than what more explicit and understandable guidelines de- was targeted in project budgets, and greater flexibil- vised. September 1988), p. 26. ⁵³National Science Foundation, Scientific and Engineering Research Facilities at Universities and Colleges: 1988, NSF 88-320 (Washington, DC: p.2. 54See Jeffrey Mervis, "Institutions Respond in Large Numbers to Tiny Facilities Program at NIH, NSF," The Scientist, vol. 4, No. 8, Apr. 16, 1990, 55For a discussion of various options, see Barbara J. Culliton, "NIH Readies Plan for Cost Containment," Science, vol. 250, Nov. 30, 1990, Higher Education, vol. 37, No. 3, Nov. 21, 1990, pp. A19, A21. 1198-1199; and Colleen Cordes, "Universities Fear That U.S. Will Limit Payments for Overhead Costs Incurred by Researchers." The Chronicle pp. of ⁵⁶Association of American Universities, op. cit., footnote 47. "Indirect Costs of Federally Funded Academic Research," unpublished paper, Aug. 3, 1984, p. 1. ⁵⁷Eleanor C. Thomas and Leonard L. Lederman, National Science Foundation, Directorate for Scientific, Technological, and International Affairs, November-December Chronicle 1990, pp. 1, 13; Colleen Cordes, "Conceding 'Shortcomings,' Stanford To Forgo $500,000 in Overhead on U.S. Contracts," Observer, 58See Marcia Barinaga, "Stanford Sails Into a Storm," Science, vol. 250, Dec. 21, 1990, p. 1651; "Government Inquiry," Stanford Overhead of Higher Education, Jan. 30, 1991, vol. 37, No. 20, pp. A19, A22; and Colleen Cordes, "Stanford U. Embroiled in Angry Controversy The on Charges," The Chronical of Higher Education, Feb. 6, 1991, vol. 37, No. 21, pp. A1, A20-A21. OTA Summary and Issues for Congress 25 ers It is also important to stress accuracy in develop- spending, and competition in the university environ- one ing estimates of costs for megaprojects. When the ment. In the academic environment, researchers are on). Federal Government "buys" a megaproject, the asked today to publish more papers, shepherd more ress initial investment seems to represent a point of no with graduate students, and bring in more Federal funding return. Once the go, no-go decision has been made heir than their predecessors.⁶ If they do not meet these at the national level, the commitment is expected to expectations, some report a sense of failure. 62 This be honored. However, criteria for consideration in ant the funding of a science megaproject could conceiv- is true even if they have succeeded, but not by as ably include: startup and maintenance costs, cost of much or as quickly as they had hoped. ent, in unanticipated delay, cost of users' experiments, and een likely changes in the overall cost of the project from To boost research productivity and to compete sity initial estimate to completion. Some estimates for with other research teams, faculty attempt to lever- cal science megaprojects double before the construction age their time with the help of postdoctoral fellows, red is even begun, and costs of operating a big science nontenure track researchers, and graduate students facility once it is completed are sometimes not who are paid lesser salaries. Due to the shortage of ars considered.⁵⁹ ith faculty positions for the numbers of graduate stu- age Megaprojects will always be selected through a dents produced, young Ph.D.s have been willing to ost political process because of their scale, lumpiness, take these positions in order to remain active ate and incommensurability. Since their costs, espe- researchers. This availability of "cheap labor" is ate cially in following years, affect other disciplines' seen by many senior researchers and their institu- ant abilities to start new, large projects, megaprojects tions as the only way they can make ends meet in un- could well be considered as candidates for crosscut- competing for grants. 63 This is a trend toward an of ting, priority-setting analysis before the practical "industrial model," where project teams are larger tia- point of no return. As the National Academy of and responsibilities are more distinct within the po- Sciences' report on budget priorities reminds: group.⁶ While the expenditures charged to an " it is necessary to specify the institutions, individual grant may be less (since more grants may 1 in individuals, and organizations that will be served; be required to support the diverse work of the group), his [and] the costs of the program. The cost of the overall cost of supporting a PI and the larger di- investment for the Federal Government is an impor- group are greater. her tant criterion to apply to all scientific research, of including megaprojects. Some experiments have been attempted on U.S. on Performer Expectations campuses to temper the drive for more research ifi- publications (as a measure of productivity). For by Not all problems in research costs can be ad- example, at Harvard Medical School, faculty are ver- dressed by the Federal Government. Many research- allowed to list only five publications for considera- and ers point to higher expectations, which require more tion in tenure reviews, with similar numbers set for de- 59For example, see Kuntz, op. cit., footnote 31; and David P. Hamilton, "The SSC Takes on a Life of Its Own," Science, vol. 249, Aug. 17, 1990, pp. 371-372. DC: ⁶National Academy of Sciences, op. cit., footnote 6, p. 11. ⁶¹This is especially true in entrepreneurial research areas such as biotechnology. See Henry Etzkowitz, "Entrepreneurial Scientists and Entrepreneurial 990, Universities in American Academic Science," Minerva, vol. 21, summer-autumn 1983, pp. 198-233. 62Science: The End of the Frontier? op. cit., footnote 14. pp. le of " ⁶³Labor economist Alan Fechter, Executive Director, Office of Scientific and Engineering Personnel, National Research Council, writes: personnel costs constitute roughly 45 percent of total costs and this percentage has remained reasonably stable over time. Given that salaries of faculty (i.e., principal investigators) have been rising during the 1980s, this suggests that the staffing pattern of research projects has been changing, with the input of PIs decreasing relative to other, less expensive resources. There is some evidence to support this hypothesis in the report of GUIRR fairs, [Government-University-Industry Research Roundtable] [that] finds in academia an increasing ratio of nonfaculty to faculty," personal communication, Nov. 15, 1990. See Government-University-Industry Research Roundtable, op. cit., footnote 48. ver, ⁶⁴Elsewhere this has been called the "industrialization" of science, or a new collectivized form in which characteristics of both the academic The and industrialized modes are intermingled." See John Ziman, An Introduction to Science Studies (Cambridge, England: Cambridge University Press, 1984), p. 132 (elaborated below). y on ⁶⁵Noted at OTA Workshop on the Costs of Research and Federal Decisionmaking, July 19, 1990. OTA 26 Federally Funded Research: Decisions for a Decade other promotions. 66 Thus, the quality and impor- urgent calls to augment Ph.D. production in the tance of the candidate's selected set of papers is United States. OTA believes that the likeli- stressed, though measuring these characteristics hood of these projections being realized is remains controversial. 67 However, strong incentives overstated, and that these projections alone are militate against reducing research volume. Most poor grounds on which to base public policy. overhead is brought into the university by a small For instance, they assume continued growth in number of research professors. (At Stanford, 5 demand in both academic and industrial sec- percent of the faculty bring in over one-half of the tors, independent of the level of Federal indirect cost dollars.) Any measure that would funding. In both this and previous OTA work, reduce grant awards and publications produced by however, OTA has indicated the value to the these investigators would deprive the university of Nation-regardless of employment opportuni- revenues. In fact, many universities in tight financial ties in the research sector-of expanding the straits try to maximize the level of research volume. 68 number and diversity of students in the educa- The Federal Government must seek to understand tional pipeline (K-12 and undergraduate) for better the trends in expenditures in the research science and engineering, preparing graduate environment-especially variations across institu- students for career paths in or outside of tional settings-and craft government policies to research, and, if necessary, providing retrain- allocate resources effectively. Reliable analyses of ing grants for researchers to move more easily research expenditures at all of the Federal agencies between research fields. are not available. Future studies of expenditures should look not only at the economic forces that 2. Total participation in science and engi- increase (and decrease) research expenditures, but neering can be increased if the opportunities also at the sociology of research organizations, and motivation of presently underparticipating including the demography of research teams and groups (e.g., women, minorities, and research- institutional policies for sponsored projects.⁶ ers in some geographic locations) are ad- Federal agencies clearly must understand increas- dressed. Federal legislation has historically ing demands to fund research, as research universi- played an important role in recruiting and ties and laboratories are an invaluable resource for retaining these groups. Also, "set-aside" pro- the United States. Devising mechanisms for coping grams (which offer competitive research grants with research expenditures is one of the central to targeted groups) and mainstream discipli- challenges to the Federal system for funding re- nary programs are tools that can enlarge, search in the 1990s. sustain, and manage the diversity of people and institutions in the research system. ISSUE 3: Adapting Education and Human Resources To Meet 3. Research in many fields of science and Changing Needs engineering is moving toward a larger, more "industrial" model, with specialized responsi- Summary bilities and the sharing of infrastructure. In Three issues are central to education and response, the Federal Government may wish to human resources for the research work force: acknowledge changes in the composition of research groups and to enhance the opportuni- 1. Recent projections of shortages of Ph.D. ties and rewards for postdoctorates, nontenure researchers in the mid-1990s have spurred track researchers, and others. ⁶⁶The National Science Foundation also now limits the number of publications it will consider, as evidence of an applicant's track record, in reviewing grant proposals. See David P. Hamilton, "Publishing By-and For?-the Numbers," Science, vol. 250, Dec. 7, 1990, pp. 1331-1332. 67See N.L. Geller et al., "Lifetime Citation Rates to Compare Scientists' Work," Social Science Research, vol. 7, No. 4, 1978, pp. 345-365; and A.L. Porter 103-124. et al., "Citations and Scientific Progress: Comparing Bibliometric Measures With Scientist Judgments," Scientometrics, vol. 13, 1988, pp. ⁶⁸OTA interviews at Stanford University, Aug. 2-3, 1990. 1989 (Dordrecht, Holland: Kluwer, 1990). ⁶⁹See Susan E. Cozzens et al. (eds.), The Research System in Transition, Proceedings of a NATO Advanced Study Institute, II Ciocco, Italy, Oct. 1-13, OTA 34 Federally Funded Research: Decisions for a Decade both the participation in, and the capacity of, the other areas, however, data are scarce. For Federal research system. But because the annual instance, almost no consistent information funding for each program remains modest (typically exists on the size and composition of the in the $10 million range), program impact is limited. research work force (as opposed to the total Without set-asides, the Federal Government science and engineering work force), or what would have little confidence that once scientific proportion is supported by Federal funds merit has been demonstrated, other differentiating (across agencies). criteria would be applied to the funding of research- Most research agencies, with the exception ers. However, to a research system already strapped of NSF and NIH, devote few resources to for resources, the funding of such "tangential" internal data collection. Consequently, most concerns is seen by some as diverting precious analyses must rely on NSF and NIH data and dollars away from the core need to advance knowl- edge.99 indicators alone, potentially generalizing re- sults and trends that might not apply to other Human resources are perhaps the most important agencies. Furthermore, it is not clear how component of the research system. Through support agency data are used to inform research deci- of scientists and engineers, graduate students, and sionmaking, as some challenge current policy the educational pipeline, the Federal Government is assumptions and others are reported at inappro- instrumental in the creation of a strong research priate levels of aggregation. work force, which has been expanding under this OTA suggests additional information that support since the 1950s. In the 1990s, however, the could be collected for different levels of research work force-in its myriad forms of organi- decisionmaking, concentrating in areas of pol- zation and scale of effort-has reached such a size icy relevance for Congress and the executive that it feels strain under the Federal Government's branch. However, better information may not present approach to supporting the conduct of be cost-free. The idea is not merely to add to research. In addition, accommodating to an expand- data collection and analysis, but to substitute ing research work force, and to the changing ethnic for current activities not used for internal and racial composition of students in the educational agency decisionmaking or external account- pipeline for science and engineering, poses chal- ability. Refined inhouse and extramural data lenges to the Federal research system. Human collection, analysis, and interpretation would resources issues have implications not only for the be instructive for decisionmaking and manag- number of participants in the research work force, ing research performance in the 1990s. but also for the character of the research that new entrants automatically bring to the Nation's research Discussion enterprise Many organizations collect and analyze data on ISSUE 4: Refining Data Collection and the research system. First and foremost is NSF, with Analysis To Improve Research its numerous surveys, reports, and electronic data Decisionmaking systems that are publicly available. Certainly the most visible compendium of data on the research Summary system is the biennial report, Science & Engineering Indicators (SEI), issued since 1973 by the National Data collected on the health of the Federal Science Board, the governing body of NSF. 100 Other research system-dollars spent for research, sources include the other Federal research agencies; enrollments, and academic degrees awarded in the National Research Council; the Congressional specific fields, and outcome measures such as Research Service; professional societies, especially publications and citations-are extensive. In the American Association for the Advancement of reflect the multiple objectives of research funding would be a key element to consider. ⁹⁹Change comes incrementally and at the margins of the enterprise. But if one were constructing the system from scratch, mainstreaming criteria to ¹⁰⁰See Susan E. Cozzens, "Science Indicators: Description or Prescription?" OTA contractor report, September 1990. Note that Science Engineering by the Science Indicators (SEI) was named Science Indicators until 1987. SEI builds on data collected, published, and issued in many other reports & Resources Studies Division of the National Science Foundation. DAtada "PINGS REPORT" Indirect Costs Associated with Federal Support of Research on University Campuses: Some Suggestions for Change Report of the AAU Ad Hoc Committee on Indirect Costs to the Executive Committee of the Association of American Universities December 1988 PINGS REPORT S Executive Summary I. INTRODUCTION A. The Problem The American government long ago entered into a mutually beneficial partnership with the nation's universities for funding research and educating future researchers. However, the partnership has grown stale. There no longer exists in government a strong, shared vision of how and why government should support research and training in universities, and the underpinnings of the partnership have come under increasing attack. In addition, growth in research budgets has been accompanied by burgeoning expectations, with the result that available resources are actually more strained than before in many areas. Pressures caused by the federal deficit have exacerbated these problems. Issues of principle have been ignored to achieve short- term budgetary objectives. As a result, long-term needs of academic research are being underfunded, with serious long-term consequences. B. The System The government sponsors university research and development through grants and contracts. Included in this process is a system for reimbursement of the costs, both direct and indirect, of conducting research. This system, although intrinsically sound, has been a source of continual frustration for all concerned, because it is complex and not easily understood or explained. OMB Circular A-21 sets forth the principles and procedures which govern the system's operation. It calls for the costs of each university's federally sponsored research to be reimbursed by the government on the basis of an individually determined indirect cost rate. This rate is the ratio of two numbers multiplied by 100. The numerator is the summation of all the allowable costs of an institution's research which are attributable to its externally sponsored and separately budgeted research not directly charged to grant or contract budgets. The denominator is the summation of the modified total direct costs expended by the institution under those research programs. The resulting rate is then applied to each contract and grant. The rate- setting usually follows negotiations which involve documentation of costs and a decision on the full level of costs that should be assigned to the federally sponsored research on the campus. PINGS Page V Executive Summary C. & D. The Ad Hoc Committee In response to growing concern over indirect cost issues, the Executive Committee of the AAU charged an ad hoc committee to review the current system, particularly the rules set forth in Circular A-21, and to identify problems and suggest changes. The Ad Hoc Committee met on a total of 13 occasions between March 1987 and July 1988, inviting guests from various government agencies, universities, and profes- sional scientific societies. It finished drafting its report on September 8, 1988. The adoption of the report by the AAU membership was confirmed by its Executive Committee on December 13, 1988. II. BACKGROUND A. History of OMB Circular A-21 In 1947 the Office of Naval Research, then the primary supporter of university research, negotiated with universities the first formal principles for determining applicable research costs based on actual costs. These principles introduced the use of campuswide average rates, deliberately eschewing the use of marginal cost rates. In 1958 these principles were revised and issued as Bureau of the Budget Circular A- 21. They allowed for varying circumstances among universities, but required justification and documentation of costs and development of methods for distributing costs between instruction and research. Certain costs were declared unallowable. Universities with less than $250,000 in annual federal research costs. funding were permitted to use a simplified approach for calculating and allocating Between 1961 and 1983, Circular A-21 was revised eight times. Following various efforts in the early 1980s to limit indirect cost reimbursements, OMB in 1986 imposed a fixed allowance for faculty administrative effort that could be charged to research; this established a precedent for departure from a cost-based system. B. Changing Context The preceding history of OMB Circular A-21 is only part of the total picture. The entire context in which the indirect cost system operates is changing. Important changes include pressures on university faculty, cumulative effects of conflicts between faculty and university officers over indirect costs, increasing obsolescence of research facilities and equipment, and the basic relationship between universities and the federal government's support of research. The 1986 OMB/DHHS assault on the principles of OMB Circular A-21 reveals little commitment to an ongoing government-university partnership. Any change in attitude toward support of university research will inevitably focus to some extent Executive Summary PINGS Page on indirect costs. If indirect costs continue to increase as a line item in the federal basic budget, for whatever reason, they might be particularly exposed, especially if the rationale and explanations for such increases are not forthcoming. Also troubling is the increasing Congressional practice of allocating funds for specific university research programs and facilities without agency review of the scientific merits. This practice reflects an increasing demand to spread research dollars the more broadly among different classes of universities and geographically. To extent that Congress or the agencies continue to yield to this demand but do not provide additional funding, there will be pressure to increase the supply of direct research dollars by capping or reducing reimbursements for indirect expenses. III. PERSPECTIVES AND PERCEPTIONS In this section of the report, the Ad Hoc Committee offers its perspective on some held aspects of the complex whole that is indirect cost recovery and notes the perceptions in the several affected communities. A. Acceptance of the Basic System (Circular A-21) about the effectiveness of OMB Circular A-21. However, the Committee did not Many who deal with indirect cost matters have at one time or another complained find any support for eliminating the current system. Rather, there was general consensus that the system is basically sound but could be improved. Happily, recommendations for change did not seem to stem from narrow, special interests. B. Averaging As defined, the indirect cost rate is an average. Like many averages, it may be representative of the whole, but it can be misinterpreted if it is assumed to be principal investigator; each research program incurs indirect costs that are descriptive of a local situation. Even in a large institution, there is no average distributed somewhat differently than they are in the university-wide average. New patterns of program funding raise the possibility of change in indirect cost recovery practices. There has been a trend in recent years toward larger grants to selected universities, such as the grants made through the NSF Engineering overhead rates for these large centers. However, this could result in institutions' Research Center Program. If this trend increases, pressures may mount for special having a great number of different indirect cost rates that would be difficult for both institutions and agencies to calculate and manage. In addition, annual fluctuations in rates are likely to increase, if averaging is minimized and the ability of agencies to indirect costs include increasing uncertainty of the calculation and divisiveness deal with rapid rate fluctuation is questionable. Further pitfalls in disaggregation of resulting from incentives to direct funds through channels with lower rates. PINGS age Page Vii Executive Summary C. Attitudes and Perceptions 1. Government Officials There is little concern among government officials over the fact that research programs need administrative support and that real costs are incurred. The concern is over the rigor with which these costs are calculated and allocated to the research programs. Because of federal budget pressures, universities can expect to be more vulnerable for costs that are not easily quantified or documented and that are one step removed from the execution of the research. None of the government officials who talked with the Committee believed that the relationship between the government and research universities was truly governed by a principle of full recovery of incurred costs. This attitude has serious implications for indirect cost recovery. It has led to formal and informal requirements for explicit cost-sharing by universities. Some university officials suspect that it occasionally enters into negotiations over annual rates, which may account in part for significant variations in rates by geographic region. 2. Faculty Groups Overall, most faculty are realistic about indirect costs. But there is persistent and consistent criticism from faculty about the quality of administration and the maintenance of facilities in support of research. In most cases, the level of faculty understanding in these areas was not high. The realities of indirect costs, along with many other aspects of institutional financing, seem to be better accepted on campuses where there is an ongoing and broad-based consultation on the full range of issues attendant to the financing and management of the institution. 3. University Administrative Officers Attitudes toward indirect costs and interpretation and explanation of indirect cost issues vary widely within different administrative offices on most campuses. Diverse interpretation is most common on the issue of full recovery. However, there is also diverse interpretation of the nature and use of the funds involved, with some seeing them as reimbursements for already incurred costs and others seeing them as new, discretionary money available after all costs are paid. This creates great potential for confusion. Some administrators believe that low indirect cost rates make it easier to compete for federal research funds, and explain their institutions' unusually low rates in part as strategies to gain competitive advantage. D. Shared Benefits In today's research university, the functions of teaching, research, and public service are often inseparable. Allocation of costs among these functions has proven to be exceedingly difficult and is an ongoing source of ambiguity and controversy. While Executive Summary PINGS Page vill some categories of costs can be assigned unambiguously, others cannot. This is one of the major reasons for variations in rates from institution to institution. There are intrinsic differences in the balance between teaching and research from university to university, and there also will be reasonable differences of judgment about the appropriateness of allocation in the areas of overlapping usage. E. Negotiation of Rates and Management of Revenues Every major research university has a rate established for the current fiscal year for recovery of indirect costs associated with sponsored research. In all instances, these rates have evolved, institution by institution, over the last 30 to 40 years as a result of direct interaction with the cognizant federal agency. The outcomes clearly reflect the attitudes and practices within the particular federal agency involved. Attitudes within a given university also affect the indirect cost rates that have evolved. A number of state institutions have complicated relationships with their state governments regarding allocation of funds. Some operate very much like private universities, where all indirect cost recoveries flow into the institution's general fund. At others, indirect cost recoveries are assigned directly to the state treasury. Clearly, a university that keeps all of its indirect cost recovery has a much greater incentive to provide the necessary documentation to recover costs as fully as possible. Universities whose funds flow back into the state treasury may find it hard to justify the costs of personnel and systems needed to document more complete recovery. Some state institutions have a combination of these two models. In many universities, both private and public, the institution allocates discretionary funds to a principal investigator in proportion to his or her success in attracting external research funding. In some cases, this is overtly described as returning some part of the overhead to the faculty member. This creates potential for confusion within and outside the institution. Institutions should be more precise in their characterization of the practice of using institutional funds to assist individual research faculty. The frequent description of refunding a portion of the overhead is not correct and is easily misinterpreted. Many institutions choose to allocate general funds equal to a portion of their indirect cost recovery to support their faculty's research. We suggest these allocations be more carefully labeled to describe their actual purpose. F. Cost-sharing Even though one of the principles underlying OMB Circular A-21 is full cost recovery, cost-sharing has been a fact of life for as long as the federal government has sponsored university research. age VIII PINGS Page ix Executive Summary one are Independent research and development funds are one example of costs that are not y to allowed to universities. Other forms of cost-sharing result from the negotiation process. There have been times when cost-sharing has been required by Congressional action. Agencies also have introduced their own requirements. Cost- sharing has not been restricted to large programs. It also has been required on individual investigator grants for more than 20 years. Particularly in times of tight budgets, the government focuses on indirect costs as the most likely area where universities can forego payment. The intent is to provide the full level of direct funding to principal investigators while the university gives up some indirect cost reimbursement. G. Vulnerability of Rates and Components The university community can expect that tensions over indirect cost recovery will persist, and that it may be easier politically to constrain payment of those costs than to limit outlays for direct research support. If the university community cannot easily explain and defend the payments in this category, it should reasonably expect difficulty in sustaining them. On the other hand, the community should insist that the process be conducted openly and without acrimony. IV. DIFFERENCES IN INDIRECT COST RATES There is a wide range of indirect cost rates among the nation's research universities. Most noticeable is the difference, on average, in rates between public and private universities, although there are anomalies within each group. Clearly, institutional peculiarities lead to differences in various components of the rate. Total rates vary by more than a factor of two from the highest to lowest, and individual components of the rates can differ by more than a factor of ten. The dominant reasons for variation in rates are: (1) real and significant differences in facilities-related costs, (2) tacit or overt underrecovery by some universities, (3) imposition of arbitrary limits by some government agencies in the negotiation process, and (4) diversity in assigning component costs as direct or indirect. V. CONCLUSIONS A. Basic Relationship It would be in the best interests of both the federal agencies who sponsor research and the university community to acknowledge explicitly that teaching and research functions are inextricably intertwined. It also needs to be acknowledged that there is mutual benefit to the government and the university community in this system. Executive Summary PINGS Page X allocate Furthermore, it should be accepted that there are complications in all attempts to costs precisely between teaching and research functions. Periodic contentiousness on the matter of indirect costs is due in part to the fundamental differences of opinion on the nature of the basic relationship between federal government and research universities. B. System for Recovering Indirect Cost It is very likely that there will always be concerns and controversies over the administrative, library, and student services components of the indirect cost long as universities and federal negotiators are required to agree on an allocation rate, of as those costs among research, instruction, and other functions. The facilities-related components of the indirect cost rate are much less controversial. There are sound practices underlying reimbursement for facilities-related costs on the basis of documented and allocated costs incurred, and the outcomes should reflect each the university's special circumstances. Moreover, there may be some merit in exploring possibility of directly charging certain elements of facilities-related expenses. 1. Full Recovery of Costs of Research The principles of full cost recovery have not been met in practice, and there is loss charges, except as an abstract limit. of credibility in urging the position of full cost recovery, either for direct or indirect a 2. Changes That WIII Affect Indirect Cost Rates private universities will need to increase indirect cost recoveries in order to Aging laboratory facilities and equipment are a major concern. Both public and All involved parties would be well served if these changes were openly debt and depreciation costs for new and renewed science and engineering facilities. meet acknowledged and accurately described. 3. Variation in Rates Apparent variations in rates do not conceal overrecovery by some universities. To the contrary, no single institution is approaching full recovery; many are would significantly underrecovering for actual costs incurred. The university community very be well served by making it more apparent that administrative costs relatively constant across all public and private universities, but that the overall are arbitrary outcomes imposed by federal negotiation process, and by voluntary variations in rates are significantly affected by true differences in facility cost, by underrecovery by certain universities. Page X PINGS Page XI Executive Summary 3 to 4. Faculty Involvement There should be less emphasis on attempting to educate faculty on the narrow issue en of indirect costs, and more emphasis on involving them in discussions of indirect costs in the broader context of the university's financial welfare. VI. RECOMMENDATIONS The current system for identifying, allocating, and recovering the costs of sponsored research should not be abandoned. However, changes could be made that would enhance the system's clarity and improve its credibility. Moreover, it may be possible and reasonable to narrow the range of rates charged by different universities. Both the federal government and the university research community have a stake in making the system simpler, more transparent, and more credible. The Committee makes its suggestions with the sole intention of improving the system. The suggestions are not intended to generate more funds for universities or to save money for the government. Recommendation 1 The indirect cost rate should be split into two new rates which are additive: a facilities and equipment rate, which includes operation, maintenance, and depreciation (or its equivalent), and a rate that includes all other components, such as administration, library, and student services. A number of campuses are incurring indebtedness to construct new science complexes, and there will be a natural tendency for them to apportion some of the costs of this indebtedness to research budgets. If such charges become a source of pressure for overall rate increases, it will be better to identify this pressure openly as facility-driven rather than to confuse it with administrative costs and other items. The second rate contains those costs which are less easy to define in terms of their attribution to research activity. Therefore, it is somewhat more likely to be controversial and subject to review and modification. However, the components of this rate, in general, have come into reasonable equilibrium and will not be subject to much pressure for increases in the near future on a nationwide basis. Recommendation 2 Threshold rates should be established for the administrative, library, and student service cost components of the indirect cost rate. These rates could be claimed without further documentation, or be supplanted by a higher rate if documentation were supplied. Implementation of this recommen- dation would allow universities to recover reasonable costs incurred, and at the Executive Summary PINGS F Page xii same time help provide simplification and removal of contention over something that never will be exact. To that end, both parts of this recommendation are essential, i.e., there must be a right to invoke a threshold rate schedule or to recover in excess of that, based on documentation. The schedule of threshold rates should reflect the average or prevailing practice, or perhaps just slightly below, since a radically reduced schedule would be accepted only by a handful of institutions. Recommendation 3 Universities and the federal government should be encouraged to negotiate multiple-year rates. There has been an increased practice in the last several years of negotiating firm rate schedules for as much as three to five years in advance. In such a process, both the federal government and the universities are reasonably well served. If there is agreement on a set of threshold rates for administrative, library, and student services components, then setting of forward rates would primarily involve facilities-associated expenses, which are particularly amenable to reasonably accurate projection. Recommendation 4 The averaging principle for indirect costs, which tends to produce one rate per campus, should be reaffirmed and accepted by all government agencies. Widespread use of multiple rates would, on balance, do much more harm than good. The damage from increased contention, distortion of incentives, destabilization of rates, and the extra cost of administering such a system far outweigh any advantage. This is especially apparent when the system is viewed on a governmentwide basis, where departures from the average tend to cancel themselves out. There is sometimes reason for separate rates, but fragmentation of rates on a single campus should be avoided. Recommendation 5 The cut-off for invoking the short form allowed by Circular A-21 for recovery of indirect costs should be raised to $10 million in total annual federally sponsored research volume so that a greater number of smaller universities can avail themselves of this arrangement. Recommendation 6 More costs should be charged directly. PINGS Page XII Page xiii Executive Summary ting In current practice, costs that are charged directly at one university may be recovered through the indirect cost rate at another. More consistent practices would over be fairer to both universities and federal sponsoring agencies and would help ild reduce some of the variation in rates. It should be noted, however, that there is significant faculty concern about such a move. Recommendation 7 There should be greater uniformity in what is included in the base of direct research expenditures. While all universities exclude certain costs in the base, significant differences still exist in the way each university "modifies" the total direct costs of its research program. This is another factor contributing to the variation in rates nationwide. This recommendation is critical to the implementation of Recommendation 2. Recommendation 8 There should be greater consistency in negotiating rates among cognizant agencies and their geographic field offices, as well as a more effective appeal process. Rates should not reflect idiosyncratic views of negotiating officers positioned in agency field offices. There should be an appeals system which provides for timely and accessible review by a neutral third party. Recommendation 9 Technological obsolescence should be factored into use allowances for research facilities and equipment, and reasonable transition rules should be adopted when switching from use allowance to depreciation. Aging facilities and obsolete equipment are major problems. In addition to providing direct support, the government should permit buildings to be amortized over a more realistic, 20-year life instead of the present 50-year life. Equipment should be amortized over four to seven years instead of the present 15-year life. The government also should make it easier to use the depreciation method by recognizing that OMB Circular A-21 permits recovery of the acquisition cost of buildings and equipment acquired with university funds. Recommendation 10 The federal government should not attempt to meet budget targets by tampering with generally accepted accounting principles. The principles of accounting for indirect costs must be separated from decisions about how costs should be shared between sponsors and the universities. Executive Summary PINGS Page xiv of Confusing budget and management objectives can, in fact, drive the overall there research, is less add unnecessary administrative burdens, and decrease up productivity. cost If decision in concert with the federal science agencies, and the entire science money available for support of research, Congress should make that community should accept the outcome. Recommendation 11 financial processes of the university. Universities should find ways for interested faculty to become more aware of the There is need for education about the total costs of research, how these effects incurred, how they are distributed between direct and indirect categories, costs and are the of changes in funding on the financial health of universities. Education is community. needed both within the federal government and within the university research Recommendation 12 and Universities should consider new and innovative techniques to hold down costs, regulations on universities. the federal government should be more aware of the cost impact of its The best way to contain indirect cost rates is through containment of indirect Universities should consider development of incentive systems for control of costs. not impact research programs and pass-through costs. only general administrative and facility costs but also those which specifically The university community should attempt to convey factual and consistent consequences of any proposed rule changes. information to federal officials on not only the monetary impact but also the general Recommendation 13 A limited amendment of OMB Circular A-21 is necessary to achieve the recommendations contained in this report. recommendations. the Many improvements in practice could be brought about within Some of the specific changes that are possible are alluded to in the preceding of COGR, both by the federal agencies with changes in their rules, or by mutual agreement by university community through voluntary guidelines developed perhaps of Recommendations OMB Circular A-21. 1, 2, and 5 would only be achieved by rewriting selected portions universities and the federal government. However, changes proposed in SCIENTIFIC AND ENGINEERING RESEARCH FACILITIES AT UNIVERSITIES AND COLLEGES: 1990 Kenneth Burgdorf, Westat Judith F. Coakley, NSF Paul Newman, Westat Terrie Squadere, Westat William Renfrew, Westat (nsf SEPTEMBER 1990 National Science Foundation NSF 90-318 NSF EXECUTIVE SUMMARY In order to sustain a strong academic research very little overall change from 1988 to 1990, capability and to enable the expansion of the either in the total amount of space assigned nation's research capacity, the facilities that house to science and engineering (S/E) disciplines the research enterprise must be maintained and or in the total amount of space used for replenished. The size, condition, and adequacy of organized research. these research facilities impact on the quantity and quality of the research conducted at our nation's As in 1988, the 100 largest R&D performers universities and colleges. In recognition of the accounted for the majority of all academic need for objective and systematic information on R&D space in 1990 (70 percent); they the status of academic research facilities, Congress accounted for 84 percent of total R&D directed the National Science Foundation (NSF), in expenditures. the Authorization Act (P.L. 99-159, section 108): More than 85 percent of the current to design, establish, and maintain a academic research space is concentrated in data collection and analysis capability. five S/E fields; the biological (22 percent), for the purpose of identifying and agricultural (18 percent), and medical (17 assessing the research facilities needs of percent) sciences, engineering (15 percent) universities and colleges. The and physical sciences (14 percent). Foundation, in conjunction with other appropriate Federal agencies, shall Of a total 276 million net assignable square feet of conduct the necessary surveys every 2 space in science and engineering fields at American years and report the results to the universities and colleges, 116 million square feet Congress. (about 40 percent) is allocated to research. 1 This is not appreciably different from the amount of R&D This report is the third in this biennial series, due space reported in 1988. The vast majority of the to Congress in September 1990. It is based on research space was located in doctorate-granting NSF's 1990 Survey of Scientific and Engineering institutions (96 percent). Three-fourths of all Research Facilities at Universities and Colleges. academic research space was in public institutions, This is the second full-scale study involving somewhat higher than the share of total R&D research space by science/engineering field and spending (65 percent) that occurs in these type of institution. institutions. The survey data on new and deferred construction, Seventy percent of this R&D space (81.7 million new and deferred repair/ renovation, and the NASF) is housed in the 100 largest research- condition and adequacy of existing research performing institutions, based on total R&D facilities are based on both quantitative and spending in science and engineering fields (Chart qualitative assessments provided by academic 1).² They have a mean of 800,000 square feet of research institutions. Although some of these data research space per institution. Other doctorate- are by their very nature subjective, they do capture granting institutions account for 25 percent of total an overall picture of the current status of facilities. R&D space, with an institutional mean of 150,000 However, this report does not, nor was it intended square feet. Non-doctorate granting institutions to, assess the impact of facilities on the quality of continue to account for less than 5 percent of all research being conducted at academic institutions. academic research space (5.2 million NASF), with an average of 22,000 square feet per institution. Amount, Condition, and Adequacy of Research Space 1 All estimates of research space are based on net assignable square feet (NASF) assigned to organized research. See Amount of Research Space Appendix pages A-6 and C-2 for definitions. 2 The "largest 100 R&D performers" (based on total research There are an estimated 116 million net expenditures in science and engineering) were selected as an assignable square feet (NASF) of research analytical grouping because they represent significant proportions of R&D expenditures (83 percent) and space (70 space available at the nation's research- percent). They are also referred to as the "top 100 research performing institutions in 1990. There was institutions" throughout this report. xiii Chart 1 Distribution of space assigned to science/engineering (S/E) disciplines by institution type: 1990 NSF 5% 12% 25% 29% 59% 70% All assigned S/E space R&D space (276 million square feet) (116 million square feet) Top 100 R&D Other doctorate-granting Non-doctorate-granting Source: National Science Foundation, SRS Adequacy of the Current Amount of Condition of Current Research Space Research Space The proportion of total R&D space that In each of the five largest S/E disciplines, institutions reported to be in need of limited 40 to 60 percent of the institutions that or major repair/renovation in 1990 was 39 perform research in the discipline reported percent, the same percentage as reported in need for more research space. 1988 (Chart 2). In most fields and in most institution types, however, the reported need for increased Chart 2 amounts of research space does not appear Institution-assessed quality/condition of academic research facilities: 1990 to have grown from 1988 to 1990. In each of the major S/E disciplines, upwards of 40 16% percent of the institutions that perform research in 26% the discipline reported in the 1990 survey that they need more research space. Reports of inadequate 23% amounts of research space were most prevalent among medical schools (for both biological and 35% medical sciences), and such reports were more widespread in 1990 than in 1988. In most (base = 116.3 million sq. ft.) disciplines, however, the need for more research space does not appear to have grown since 1988. Suitable for use in most sophisticated research Effective for most uses By discipline, ratings of "generally adequate" or Needs limited repair/renovation better in relation to the amount of space ranged Needs major repair/renovation from a low of 48 percent of institutions with programs in medical sciences to a high of 68 Source: National Science Foundation, SRS percent of those with programs in psychology. In a few fields (e.g., the physical sciences and At the other end of the quality/condition engineering), the number of schools reporting a spectrum, there may have been a slight need for more space has declined slightly since the overall increase in the amount of space that 1988 survey. institutions reported as being suitable for xiv Chart 3 Total spending for construction and repair/renovation of NSF academic research facilities by discipline: 1986-89 Engineering $818 $502. Physical sciences $583 $270 Environmental sciences $139 $39 Mathematics $10/$15 Computer science $126 $26 Agricultural sciences $302 $43 Biological sciences $1040 $426 Medical sciences $1152 $411 Psychology $48/$25 Social sciences $86 Facilities construction $44 Facilities Other sciences, n.e.c. $209 $47 repair/renovation 0 500 1000 1500 2000 Dollars in millions Source: National Science Foundation, SRS the "most highly developed and scientifically New facilities construction accounted for sophisticated research"; the estimates over 70 percent of these capital project increased from 24 percent of R&D space in expenditures ($4.5 billion). 1988 to 26 percent in 1990. In absolute terms, the total amount of research space These capital projects were heavily rated in this category rose about 12 percent. concentrated in four disciplines, the Absolute increases were seen across almost medical, biological, and physical sciences all institution types and all S/E fields. and engineering, which collectively accounted for 80 percent of all construction Institutions in the top 100 reported a larger expenditures and 87 percent of all proportion of their research space as repair/renovation expenditures (Chart 3). "suitable for the most highly developed research" (27 percent) than was found at other doctorate (24 percent) or non- Construction of New Research Facilities doctorate institutions (19 percent). Institutions reported groundbreaking for new construction projects totalling about Capital Projects To Maintain, Improve, $4.5 billion over the 1986-89 period. About or Expand Research Space $2.0 billion was reported for projects begun in 1986-87 and $2.5 billion in 1988-89. Institutions spent a total of $6.4 billion for When completed, these projects will construction and repair/renovation of S/E produce over 20 million square feet of new research facilities over the four-year period R&D space. 1986-89. This estimate excludes all construction, repair, or renovation projects The actual construction activity in 1988-89 that cost less than $100,000. as reported in the 1990 survey was not as extensive as institutions had planned for XV Chart 4 NSF Total expenditures and unit costs for recent and planned capital projects: 1986-91 New construction Repair/renovation $4 $400 $3.5 $311 $3 Dollars in billions $2.5 $2.1 $2 Cost per square foot of research space $300 $231 $207 $200 G $1 $1.04 $0.84 $0.96 $111 $100 $91 $62 1986-87 1988-89 1990-91 1986-87 1988-89 1990-91 (plan) (plan) Total expenditures Unit costs Source: National Science Foundation, SRS 1988-89 as reported on the 1988 survey. facilities rather than to increase institutions' The shortfall was greater for level of total amounts of research space. expenditures (27 percent less than planned) than for amount of space (10 percent less Spending for new construction in 1990-91 is than planned). Approximately $1.0 billion projected by institutions to grow by over 40 in planned new construction for 1988-89 did percent, to a total of almost $3.5 billion. not take place, mainly due to funding constraints. About 43 percent of all academic research institutions broke ground for new R&D related The unit cost (the average cost per square construction projects in 1988-89, up from 37 foot) of the R&D components of the percent in 1986-87. 3 Construction activity was most construction projects actually undertaken in prevalent among the largest 100 research 1988-89 ($231/square foot) was 12 percent performers, 71 percent of which initiated projects higher than the average unit cost of the in 1988-89. New construction begun during 1988- projects initiated in 1986-87 ($207/square 89 will produce a total of 10.6 million NASF of new foot). Costs are estimated to rise an additional 35 percent for 1990-91 projects, to $311/square foot (Chart 4). Although high levels of construction activity occurred over the 1986-89 period, comparable increases were not seen either in the total amount of R&D space or in the 3 proportion of top quality R&D space. This All data on construction and repair/renovation projects are based on the institutions' fiscal years in which the projects suggests that much of the new construction were, or will be, initiated. For simplicity, references to the is used to replace obsolete or inadequate periods in which construction or repair/renovation begins omit the notation "FY"; it is understood that all such dates refer to the institutions' fiscal years. xvi NSF research space when completed.⁴ This represents a capabilities as contributing to rising construction 7-percent increase in research NASF when costs. Geographic and local differences in compared to projects initiated in 1986-87, but falls regulatory and safety codes--e.g., seismic safety short of the 11.8 million NASF that had been codes--often result in regional average unit costs planned as reported by institutions on the 1988 that are markedly higher than those seen survey. Costs for the 1988-89 projects totalled $2.5 elsewhere. billion, considerably less than the $3.4 billion that had been projected two years earlier. Inability to obtain sufficient funding was the principal reason Repair/Renovation of Existing Research given by respondents for postponing or scaling back Facilities planned construction projects. Spending for facilities repair/renovation Institutions projected in the 1990 survey that they grew from $840 million in 1986-87 to $1.04 plan to spend approximately $3.5 billion on new billion in 1988-89, in contrast to institution construction projects in 1990-91. This represents a projections that had envisioned decreased 40-percent increase in expenditures over the 1988- spending (Chart 4). 89 level for construction of 11.2 million NASF of new research space, the equivalent of 10 percent of The total space affected by these repairs, existing research space. however, decreased somewhat, resulting in higher average unit costs for the R/R The rising construction expenditures can be projects actually undertaken in 1988-89 than attributed to two factors: (1) the steady annual had been projected two years earlier-- growth in the amount of research space under $91/square foot versus $80/square foot. construction, and (2) the rapid growth in the unit cost of research space. Costs per square foot for Expenditures for R/R activities in 1988-89 were new construction grew from $207/square foot in higher than projected by institutions in the 1988 1986-87 to $231/square foot in 1988-89; costs are survey--$1.04 billion versus a projection of $754 estimated at $311/square foot for 1990-91 projects million. The total space affected by these repairs (Chart 4).⁵ increased somewhat, from 9.4 million NASF to 11.5 million NASF. This suggests that institutions may Institutions have consistently reported that underestimate the extent to which future R/R construction costs are driven not only by the need projects are needed in response to technical, for more research space, but by the need for regulatory, or emergency requirements. upgrading the quality of the space. Costs are driven by Federal, state, and local government Similar to the 1988 survey, institutions report that safety and regulatory requirements as well as by the plans for R/R in 1990-91 will decline by 9 percent need for high-tech facilities. Institutions repeatedly over 1988-89 levels. Unit costs for R/R activities, mentioned the need to upgrade animal care however, are projected to increase substantially. facilities, toxic and hazardous waste storage and disposal facilities, and telecommunication Deferred Capital Projects 4 This does not necessarily imply a direct increase in the total An estimated $15.6 billion would be amount of space available for research purposes, as much of required to address institutions' currently this new space will be used to replace other aging or inadequate space, or space that will be converted to other reported needs for additional research space uses. and for repair/renovation of existing ⁵Iₜ should be noted that these unit costs are presented as research space. Since institutions plan to analytic constructs only, and are used to make descriptive spend a total of $3.6 billion for research- comparisons. They should not be construed to represent related capital projects in 1990-91, this actual unit costs for any specific construction project, but are useful in tracking broad cost trends over time. Unit costs for leaves an estimated $12.0 billion backlog of capital projects are highly variable, depending on the specific needed but unfunded capital projects (Chart requirements of the particular project and on S/E field and 5). geographic region of the country. xvii NSF Chart 5 Trends in deferral of needed research facilities capital projects: 1988 to 1990 Type of capital project Survey year 1988 1990 (Dollars in billions) New construction Needed at time of survey $8.1 $10.6 Planned for two years following the survey * - $2.3 $2.6 Deferred $5.8 $8.0 Repair/renovation Needed at time of survey $3.5 $5.0 Planned for two years following the survey $0.8 $1.0 Deferred $2.8 $4.0 Capital projects, total Needed at time of survey $11.6 $15.6 Planned for two years following the survey - $3.0 $3.6 Deferred $8.6 $12.0 For those institutions that reported they need additional research space and plan new construction projects. Source: National Science Foundation, SRS The current $12 billion level of deferred The current overall level of deferred capital projects represents a 40-percent construction means that, for every dollar of increase over the level found in 1988 ($8.6 planned new construction in 1990-91, $3.11 billion). of needed construction will be deferred (up from $2.48 in 1988). As in 1988, about two-thirds of the current capital project backlog is in the area of Although the numbers of institutions reporting deferred construction ($8 billion of $12 inadequate amounts of research space did not billion). change much from 1988 to 1990 in most S/E disciplines, actual and planned construction costs have increased significantly. Consequently, the Deferred New Construction estimated cost of addressing unmet needs for facilities expansion has also increased, and this is If all institutions were able to construct reflected in the deferred construction figures given additional research space in the S/E above. disciplines that report an inadequate current amount of space, at the same average cost as for the construction projects that are Deferred Repair/Renovation being planned for 1990-91, the estimated total would be $10.6 billion. Of this, $2.6 Institutions have consistently expressed concern billion of needed expansion is being planned over the backlog of needed repair and renovation for 1990-91; the rest, $8.0 billion, is being activities for research facilities. deferred into the indefinite future. In the 1988 survey, the anticipated deferred The current level of deferred construction R/R in 1988-89 (i.e., the difference between ($8 billion) is 38 percent above the level the projected total cost of all needed R/R found in 1988 ($5.8 billion). and the anticipated cost of all planned R/R) was $2.78 billion. According to 1990 survey xviii NSF Chart 6 Relative sources of funds for research facilities capital projects begun in 1986-89 2% 4% 11% 9% 8% 27% Federal government 22% State/local government Private donations 28% Institutional funds 49% 28% 12% Debt financing Other sources Private institutions Public institutions ($2.1 billion) ($4.2 billion) Source: National Science Foundation, SRS data, the amount of deferred R/R will rise Sources of Funds to more than $4.0 billion by the end of 1991. Similar to the findings in the 1988 study, The amount of R&D space needing R/R is major sources of funds for new construction slightly larger in 1990 than it was in 1988. projects in 1988-89 came primarily from Also, the anticipated unit cost of R/R for three sources: state/local governments, 1990-91 is higher than it was two years ago private donations, and debt financing. for 1988-89 ($111/square foot versus Public institutions acquired nearly half of $91/square foot). their funding from state/local governments, while private institutions depended mainly The amount of R/R now planned for 1990-91 is on private donations (Chart 6). lower than was planned in 1988 for 1988-89 (8.6 million NASF versus 9.4 million NASF). The Both public and private institutions result is that the estimated cost of the backlog--the depended primarily upon institutional R/R that will be deferred in 1990-91--has risen to funding for R/R projects. $4.06 billion. Thus, if all research space needing R/R in 1990 (39 percent of existing research space) The Federal government provided a were to receive it, at the same cost per square foot comparatively small share of total direct as was found in institutions actually planning such funding for both new construction and R/R projects, the cost would be $5.0 billion, roughly 5 projects in 1988-89, about 14 and 6 percent, times the amount institutions plan to spend. respectively.⁶ Still, in absolute terms, Therefore, it is estimated that institutions will defer Federal funds for new construction of about $4.25 in needed R/R for every $1.00 that will research facilities more than doubled over be spent. 6, This report includes data on the direct costs of construction and repair/renovation and the sources of funds for these direct costs. No attempt was made to quantify future indirect cost pressures resulting from current or planned projects. xix Chart 7 Sources of funds for research facility NSF capital projects begun in 1986-87 and in 1988-89 by control of institution* $1200 Public institutions 57 Private institutions $1000 31 1068 981 255 $800 Dollars in millions $600 660 ,354 314 296 $400 279 333 107 306 $200 264 274 215 119 218 178 $0 54 86-87 88-89 86-87 88-89 86-87 88-89 86-87 88-89 86-87 88-89 Federal State/local Institutional Private Debt/other government government funds donations Sources of funds Data include expected total project costs of R&D components of new construction and repair/renovation projects begun in the specified two-year periods. Source: National Science Foundation, SRS the 1986-89 period. The increase was seen funding dropped somewhat, and the use of debt mainly at public institutions (Chart 7). financing other than tax-exempt bonds grew from less than 1 percent in 1986-87 to 12 percent in Private institutions' use of tax-exempt bonds 1988-89. and other debt financing for new construction projects doubled from $124 Public institutions, in contrast to private million in 1986-87 to $254 million in 1988- institutions, acquired almost half of all new 89. Much of this increase ($87 million) construction funding from state/local governments. involved non-tax-exempt debt. The Federal government provided the second largest portion in 1988-89, growing from a 3- The increasing use of taxable bonds and percent share in 1986-87 to 16 percent. Only 9 other debt may be related to the fact that, of percent of construction costs were secured from the 30 private institutions that are among debt financing. the 100 largest research performers in the nation, nearly two-thirds had reached the Expenditures for repair/renovation of research $150 million statutory limit on tax-exempt facilities for both private and public institutions bonds in 1990. totalled $1 billion in 1988-89. Both types of Private institutions expended $738 million for new institutions obtained over half of their R/R funding from institutional funds. The second largest source construction projects in 1988-89 while public for private schools was debt financing (24 percent), institutions invested $1.7 billion. Substantially while public institutions depended more upon different patterns of funding support were state/local governments (33 percent). The Federal reported. share of costs for R/R activity, 6 percent, doubled in absolute terms over 1986-87 levels, with most of Private institutions depended mainly on private the increase going to private institutions. donations (36 percent) and debt financing (34 percent) to support new construction in 1988-89. Private institutions reported that they plan to float This funding pattern is consistent with findings for $350 million in tax-exempt bonds for new 1986-87 projects with two exceptions: institutional construction projects in 1990-91, more than twice XX NSF the value of bonds issued during 1988-89. For Methodology private institutions only, recent legislation has placed a $150 million limit on outstanding tax- The Survey of Scientific and Engineering Research exempt bonds. Among the 30 private institutions in Facilities at Universities and Colleges is conducted the top 100, 16 had reached the cap by 1988; 19, by every two years. The first full-scale baseline study 1990; and another 3 expect to do so in the next two was conducted in 1988 and a report was submitted years. to Congress in September of that year. The 1990 study was conducted during the fall and winter of 1989-90 with a report due to Congress in Research Facilities at Historically Black September 1990. Colleges and Universities Prior to the 1988 survey, NSF developed the While historically black colleges and research facilities survey questionnaire in universities (HBCUs) reported a 30-percent cooperation with several higher education overall increase in the total amount of associations, university representatives, and an research space available in 1990, they expert advisory panel. The survey universe includes continued to account for just over 1 percent doctorate- and non-doctorate-granting institutions of total research space for all academic as well as historically black colleges and universities research institutions. (HBCUs) that perform research in science and engineering. In 1988-89, HBCUs obtained about 80 percent of their research facilities The 1990 survey collected quantitative as well as construction and R/R funding from either qualitative data for individual science and Federal or state/local government sources, engineering fields. This provided a detailed picture similar to levels reported for 1986-87 of the amount and condition of available research lebt projects. space, recent and planned repair/renovation and rom construction activities, and sources of funds for t in Historically black colleges and universities reported these capital projects for the years 1988 through high levels of research facility construction activity 1991. There was little difference between the 1988 over the 1986-89 period, resulting in a 30-percent and 1990 survey questionnaires. Additional detail vate overall increase in the total amount of research was added to the "sources of funds" questions to new space available in 1990. The 1.4 million NASF gather needed information of specific private nts. used for research represents just over 1 percent of sources. Also, the data for main institutions and ond total NASF for all academic institutions, similar to associated medical schools, which were collected 3- the HBCU share of total academic R&D spending. on separate questionnaires in 1988, were combined ly 9 These proportions have not changed significantly into one questionnaire for the 1990 survey. rom since the 1988 survey. The data in this report were obtained from a HBCUs obtained more than 80 percent of total stratified probability sample of 253 universities and rch research facilities funding from government colleges in a universe of 525 institutions. The ions sources. The Federal government accounted for 53 universe datafile included all universities and of percent of total funding over the 1986-89 period, colleges that offered a master's or doctoral degree ling while state/local government sources provided 29 in the sciences and/or engineering, all others that irce percent. had separately budgeted S/E research and nt), development (R&D) expenditures of $50,000 or pon Facility condition ratings were generally more more, and all historically black colleges and eral positive for HBCUs than were seen in most other universities (HBCUs) reporting any R&D led institution categories. However, the proportion of expenditures. Within strata, institutions were t of R&D space rated as being "suitable for the most sampled with probability proportionate to the size, highly developed and scientifically sophisticated based on R&D expenditures in science and research" declined somewhat, from 36 percent in engineering. The institution sample for the 1990 loat 1988 to 31 percent in 1990. The amount of space survey was essentially the same as for the 1988 new requiring limited or major R/R remained constant study. All of the schools ranked in the top 50 and vice at 25 percent. 98 of the top 100 were sampled. The 253 xxi NSF institutions in the sample accounted for more than Findings from the 1990 study are statistically 75 percent of total academic R&D expenditures weighted to provide national estimates for all and at least 70 percent of spending in each S/E schools that perform R&D activities. The response discipline. The 1990 study included the same 29 rate was 94 percent for all universities and colleges. HBCUs that were surveyed in the 1988 study. The overall item nonresponse rate was less than 1 percent. xxii EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF SCIENCE AND TECHNOLOGY POLICY FILE WASHINGTON, D.C. 20506 March 18, 1991 PEAST MEMORANDUM FOR FROM: TOM DISTRIBUTION WELCH Tom SUBJECT: PCAST EXECUTIVE ORDER Attached is the current Executive Order and Charter for PCAST. You will notice that they expire on June 30, 1991. Since it is complex and quite time-consuming, we would like to begin the extension process now. Therefore, we are asking for any comments or suggestions you may have on the Charter and Executive Order. We are interested in all comments whether substantive, technical, or editorial. Please submit your comments to the PCAST office as soon as possible, but no later than Monday, April 1, 1991. This will allow for discussion at the April PCAST meeting. Thank you very much for your help. Attachment Distribution: Associate Directors Assistant Directors Maryanne Bach Barbara Ferguson Bill Wells Ken Yale office of the Press Secretary (Miami, Florida) January 19, 1990 For Immediate Release EXECUTIVE ORDER PRESIDENT'S COUNCIL OF ADVISORS ON SCIENCE AND TECHNOLOGY the authority vested in me as President by the Constitution By and laws of the United States of America, and the in to establish, in accordance with the provisions of order Federal Advisory Committee Act, as amended (5 U.S.C. App. 2), an advisory committee on science and technology, it is hereby ordered as follows: Section 1. Establishment. There is established the President's Council of Advisors on Science and Technology ("Council"). The Council shall be composed of not more office than members, one of whom shall be the Director of the be of 15 Science and Technology Policy, and 14 of whom shall be distinguished individuals from the private sector to appointed by the President. The Director of the Office of of Science and Technology Policy shall serve as Chairman the Council. The Vice Chairman shall be appointed by the President from among the 14 private sector members. The Chairman shall report directly to the President. Sec. 2. Functions. (a) The Council shall advise the President on matters involving all areas of science and technology. In the performance of its advisory duties the developments in science and technology, and shall, through the Council (b) shall conduct a continuing review and assessment of Chairman, report thereon to the President whenever requested. The Chairman may, from time to time, invite experts to investigate (c) and report to the Council on specific issues of national consequence. Sec, 3. Administration- (a) The heads of Executive agencies shall, to the extent permitted by law, provide to the Council and its panels such information with respect scientific and technological matters as required for the purpose of carrying out its functions. Members of the Council shall serve without any compensation (b) for their work on the Council. However, members be allowed travel expenses, including per diem in lieu appointed from among private citizens of the United States of may subsistence, as authorized by law for persons serving intermittently in the Government service (5 U.S.C. 5701-5707). funds (c) available for the expenses of the office of Science and Any expenses of the Council shall be paid from the Technology Policy. reimbursable basis, provide such administrative services (d) The office of Administration shall, on a 2 sec, 4. General. (a) Notwithstanding any other Executive order, the functions of the President under the Federal Advisory Committee Act, as amended, except that of reporting to the Congress, which are applicable to the Council, shall be performed by the Office of Administration in accord with the guidelines and procedures established by the Administrator of General Services. (b) The Council shall terminate on June 30, 1991, unless sooner extended. GEORGE BUSH THE WHITE HOUSE, January 19, 1990. # # # OFFICE OF SCIENCE AND TECHNOLOGY POLICY CHARTER PRESIDENT'S COUNCIL OF ADVISORS ON SCIENCE AND TECHNOLOGY 1. Committee's Official Designation: President's Council of Advisors on Science and Technology (PCAST). The Council was established by Executive Order Number 12700, dated January 1990. 2. Objective and Scope of Activities and Duties: The purpose of the PCAST is to advise the President on all matters involving science and technology. In furtherance of this mission the PCAST shall conduct a continuing review and assessment of developments in science and technology and the chairman may invite panels of experts to investigate and report to the Council on specific issues of national importance. 3. Duration The Council will have continuing responsibility for advising the President. The Council will terminate on June 30, 1991, unless sooner extended. 4. Official to Whom the Council Reports: The PCAST will report to the President, through the Chairman of the Council. 5. Agency Council: Responsible for Providing Necessary Support for this Office of Science and Technology Policy (OSTP). 6. Description of Duties: The Duties of the Council are solely advisory and are stated in paragraph 2 above. 7. Costs: The estimated annual operating cost of the Council is $375,000, including 2 man years of support staff activity. 8. Estimated Number and Frequency of Meetings: The President's Council of Advisors on Science and Technology shall normally meet twelve times each year at regular intervals, and at such other times as may be called by the President or the Director, OSTP. In addition, 10-15 meetings each year by Panels are anticipated. 9. Panels: Panels may be formed to conduct studies on specific issues assigned by the President or the Director, OSTP. 10. Members: PCAST members shall be appointed by the President from the private sector. The PCAST shall consist of no more than 14 members and the Chairman. The Director, OSTP shall serve as Chairman of the Council, and the Vice Chairman shall be appointed by the President from the members of the Council. The Council may utilize additional technical experts as needed to constitute its panels and study groups. These technical experts shall be appointed by the Chairman and shall serve at the pleasure of the Chairman. This Charter for the Advisory Committee named above is hereby approved: Signed: Deluan Broml Assistant to the President for Science and Technology, and Director, Office of Science and Technology Policy, and Chairman, President's Council of Advisors on Science and Technology. Date signed: January 23, 1990 Date filed: January 24, 1990 DRAFT May 6, 1991 DRAFT PCAST MEMORANDUM FROM: JOHN McTAGUE, ON BEHALF OF PCAST SUBJECT: INVESTING IN THE FUTURE - FOLLOW THROUGH WITH CONGRESS The Council reiterates its support for the important investment in the future proposed in your FY 1992 Budget submission, particularly in the areas of research and development. At the March PCAST meeting you noted the lack of a natural political constituency for research, especially individual investigator efforts. This makes all the more important strong White House follow-up with the Congress, particularly as consideration moves to the appropriation process. From the authorization hearings and budget resolutions to date, it is becoming increasingly clear that sustaining your R&D priorities will require your personal and visible participation. If you were to call together both Republican and bipartisan Congressional leaders to highlight the priority this investment has for the nation it would be particularly effective. The Council recommends such an action, realizing the many demands on your time and political capital. SENT BY:Xerox Telecopier 7021 ; 5- 7-91 ; 9:25AM : 2023951575- 2023953462:# 2 EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF SCIENCE AND TECHNOLOGY POLICY WASHINGTON, D.C. 20506 May 6, 1991 MEMORANDUM FOR THE PRESIDENT'S COUNCIL OF ADVISORS ON SCIENCE AND TECHNOLOGY FROM: ToM WELCH, EXECUTIVE DIRECTOR Tom SUBJECT: Follow-on Actions From May PCAST Meeting As you are aware, there are many follow-on items from the May meeting. Because of the complexity of some of these tasks and since Dr. Bromley will be leaving for the Soviet Union on Friday, May 10, he has asked that three of these items be given your priority attention so that they can all be adequately addressed before his departure. This means that a deadline for completion of each of these items will be no later than 12:00 NOON on Thursday, May 9, 1991. The first item is the preparation of the briefing memoranda for the President. As discussed during last week's meeting, designated members will compose a short memorandum as part of a package to the President on behalf of the entire Council. Dr. Bromley will compose a cover memorandum for the package. Please note that we will need to put each memorandum in a standard format and on appropriate stationery for the final package to the President. In order for this to occur, we must adhere to a strict time line. First, Dr. Bromley has requested to see a draft of each memorandum prepared by the members as discussed during the May meeting no later than 12:00 NOON on Tuesday, May 7. This will allow for any comments to be faxed back to your office by close of business on Tuesday. Last, to meet the Thursday deadline, the final copy should be sent by fax no later than 12:00 NOON on Wednesday, May 8. Please send all faxes to the PCAST staff office at (202) 395-1575. The second item is the notification of Panel member nominees. In order for us to send nominees the required forms before Dr. Bromley leaves, we request that each Panel chairmen fax their final list of Panel members with their affiliations and addresses as soon as possible, but again no later than 12:00 NOON on Thursday. At minimum, the name and phone number for each Panelist is necessary. The third item is final approval of Panel Terms of Reference. During the meeting, minor changes were suggested for several of the Panel TORs. Working with the OSTP sponsor for each Panel, we will send the updated version to the appropriate Panel chairmen for final comment. Unless otherwise requested, the final Terms of Reference will be signed by Dr. Bromley on Thursday, May 9, 1991. Your cooperation on these 3 items will be greatly appreciated. Please note we will also be sending you further information on the procedures and guidelines for future Panel meetings. If you should have any questions or require assistance, please call me or the designated OSTP sponsor. THE WHITE HOUSE WASHINGTON May 8, 1991 MEMORANDUM FOR THE PRESIDENT FROM: JOHN McTAGUE, ON BEHALF OF PCAST SUBJECT: Investing in the Future - Follow Through With Congress The Council reiterates its support for the important investment in the future proposed in your FY 1992 Budget submission, particularly in the areas of research and development. At the March PCAST meeting you noted the lack of a natural political constituency for research, especially individual investigator efforts. This makes all the more important strong Administration follow-up with the Congress, particularly as consideration moves to the appropriation process. From the authorization hearings and budget resolutions to date, it is becoming increasingly clear that sustaining your R&D priorities will require your personal and visible participation. If a White House meeting were called together, with both Republican and bipartisan Congressional leaders to highlight the priority this investment has for the nation, it would be particularly effective. The Council recommends such an action, realizing the many demands on your time and political capital. FILE peasi EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF SCIENCE AND TECHNOLOGY POLICY WASHINGTON, D.C. 20506 Tom Welch- - d have looked over the Comony Megaprojects draft. It needs a lot of work I'll give it attention on my return from the USSR pn 5/9/91 CC: KenYale EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF SCIENCE AND TECHNOLOGY POLICY WASHINGTON, D.C. 20506 May 7, 1991 MEMORANDUM FOR J. THOMAS RATCHFORD FROM: TOM WELCH Tom SUBJECT: Draft PCAST Memorandum on Megaprojects As you are aware during last week's PCAST meeting Dr. Bromley asked several members to draft memoranda to the President on selected issues on behalf of the entire Council. Attached is a first draft of the memorandum on Megaprojects as composed by Ralph Gomory. It would be very helpful if you could provide comments or suggestions on this draft and get them back to the PCAST office by close of business today. This will help enable us to forward the draft memorandum with the comments back to the author and get a response before Dr. Bromley leaves for the Soviet Union on Friday. Thank you very much for your cooperation. Attachment CC: Ken Yale Needs Much work DRAFT May 7, 1991 DRAFT PCAST MEMORANDUM FROM: RALPH GOMORY, ON BEHALF OF PCAST SUBJECT: Megaprojects The Federal Government can be proud of its role in supporting research since World War II. This research has had to two components, support of individual investigators and support of Megaprojects. While both components have had significant successes, the historical record shows that the most far reaching successes have clearly come from the individual investigator component. We need only mention the work on solid state physics that made the transistor possible, or the fundamental work on molecular biology leading to the transistor. ? PCAST is concerned that the working of the principal investigator system is under great stress and is further threatened by the planned out-year growth of Megaprojects. all Some of the Megaprojects are bonafide - if expensive - scientific projects from which significant results can be expected. The Superconducting Super Collider is an example of this. However others, the Space Station is an example, which can make at best a minor scientific contribution. Given their great expense, such projects can not be justified, else. sofely on scientific grounds, and their continuation needs to be based on something While in the past Megaprojects were affordable, and their our-year growth could be dealt with in expanding budgets, this is no longer the case in this time of limited budgets. PCAST is concerned that the impact is and will be felt on what has historically been the most productive component, the individual investigator. PCAST believes that priorities will have to be set and choices made among the megaprojects. PCAST recognizes the sensitivity of this issue, and the fact that we are dealing with major legacy decisions. Nevertheless PCAST would be willing to contribute its views on these necessary choices if the President finds that useful. OSTP STAFFING SHEET SUBJECT: Procedures for PCAST Panels ORIGINATOR: Tom week PHONE DATE ORIGINATED: 6/4 DATE DUE 6/4 cob CORR TRACKING NO: EXTERNAL COORDINATION: COMMENTS DATE DIRECTOR CHIEF OF STAFF GENERAL COUNSEL EXEC. ASST. ACTION REQUESTED: Clear/comment to Bill Snyder by cob (5p.m.) today 6/4/91 COORDINATION DATE COMMENTS Concur Henderson, D.A. $ Nonconcur Concur Phillips, W. Nonconcur Concur Ratchford, J.T. d have no specific suggestions Nonconcur except that the Panel chairmen Concur Wong, E. should review in draft before Nonconcur the memo is issued - even Concur better, all PEAST members Nonconcur Concur should veislew in draft. Nonconcur Concur Nonconcur Concur Nonconcur Concur Nonconcur Concur Nonconcur Concur Nonconcur Concur Nonconcur Concur Nonconcur THE WHITE HOUSE WASHINGTON June 4, 1991 MEMORANDUM FOR THE PRESIDENT'S COUNCIL OF ADVISORS ON SCIENCE AND TECHNOLOGY AND THE OSTP STAFF FROM: D. ALLAN BROMLEY SUBJECT: Procedures for PCAST Panels Now that the PCAST Panels are taking shape I believe it important to review the procedures and guidelines which are necessary to the operation of the Panels. PCAST Panels will be composed of PCAST members only and outside expert witnesses presenting testimony to the Panel. The two exceptions are the Technology and National Security Panel which will have non-PCAST members appointed as consultants to the Office of Science and Technology Policy and the High Performance Computing and Communications Panel which will have both consultants and witnesses. The consultant approach is necessary for these Panels because of the need for repeated, consensus building among the PCAST and the other members of the Panel. It is important to keep in mind while the structure of the Panels may differ, the following procedures and guidelines will apply to all Panels. Requirements under the Federal Advisory Committee Act All PCAST Panels, regardless of their structure, and Panel sub-groups come under the Federal Advisory Committee Act (FACA). In general, FACA requirements apply to all advisory groups which meet two criteria: (1) the group provides advice and recommendations to a Federal official; and (2) the group has at least one non-Federal member. There are exceptions, however none of which apply to the PCAST Panels or Panel sub-groups. Each group under FACA must satisfy several requirements, including: 0 Each Panel must publish a notice in the Federal Register of all meetings and make them open to the public. Three original copies of the announcement signed by Damar Hawkins must be given to the Federal Register 15 days before each meeting. There are exceptions when meetings may be in closed session. Tom Welch can discuss the requirements for closed meetings with each of the Panel chairmen. 0 Each Panel must keep detailed minutes of all meetings and make them available to the public. These minutes must include the time and place, list of attendees, and copies of all documents dispersed during the meeting. There are a few exceptions where portions of the minutes can be withheld from the public, but regardless of the circumstance minutes must always be taken. 0 Each Panel must have a designated Federal official present during all meetings. In most cases, this will be the Office of Science and Technology Policy sponsor for the Panel or their designee. These meetings should be conducted using the model of a congressional hearing with expert witnesses or industry representatives presenting testimony to the Panel chairmen. There may also be question and answer sessions. The presenters may be brought in on multiple occasions. The National Science Foundation has prepared a very thoughtful document which carefully outlines procedures for managing advisory committees which you may find useful. It has been included for your future reference. Also enclosed is a booklet on FACA published by the General Services Administration. Travel As is the case with all PCAST meetings, invitational travel orders will be issued by the OSTP in order for members of the Panel and presenters to be reimbursed for per diem and travel expenses at a government determined rate. (A sample letter of invitation for Panel witnesses is attached) To help ensure the successful implementation of these procedures and guidelines, I ask that the Panel chairmen notify the PCAST staff office, (202) 395-5101 at least 3 weeks in advance of all Panel meetings. If you should have any questions or concerns about the operations of the Panels, please let me know and I will try to help. These success of these Panels will be vital to the continued success of PCAST in maintaining its mission of advising the President. I look forward to hearing about your progress. Attachments The Federal Advisory Committee Act: An Overview dvisory committees have played an A important role in shaping programs and policies of the Federal Government from the earliest days of the Republic. Since President George Washington sought the advice of such a committee during the Whiskey Rebellion of 1794, the contributions made by these groups have been impressive and diverse. U.S. General Services Administration CSA Committee Management Secretariat Washington, DC 20405 hrough enactment of the Federal Advisory Committee Act Together, GSA and the Federal community work together to T (FACA) of 1972 (Public Law 92-463, October 6, 1972), the eliminate the overlap or duplication of advisory bodies, terminate U.S. Congress formally recognized the merits of seeking unnecessary or inactive committees, and develop committee the advice and assistance of our Nation's citizens. At the management regulations, guidelines, and training in response to re- same time, the Congress also sought to assure that advisory quirements of the Executive Branch and Congress. committees: Provide advice that is relevant, objective, and open to the public; Complying with FACA Act promptly to complete their work; and Any advisory group, with limited exceptions, that is established or Comply with reasonable cost controls and recordkeeping utilized by a Federal agency and that has at least one member who requirements. is not a Federal employee, must comply with the FACA. To find out if a group comes under the FACA, any individual may contact the Role of Federal Advisory Committees sponsoring agency's Committee Management Officer, or the GSA Committee Management Secretariat at FTS/202 523-4884. With the expertise from advisory committee members, Federal officials and the Nation have access to information and advice on a Requirements for Establishing broad range of issues affecting Federal policies and programs. The and Managing Advisory Committees public, in return, is afforded an opportunity to participate actively in the Federal Government's decisionmaking process. Under the Federal Advisory Committee Act, advisory committees can be created only when they are essential to the performance of a Federal Agency Responsibility duty or responsibility conveyed upon the Executive Branch by law. Before committees can be set up, high-level officials within the Each Federal agency that sponsors advisory committees must sponsoring agency must review and approve the request. Once a adhere to the requirements established by the FACA, as well as committee is approved, a charter is prepared outlining the commit- those administrative guidelines provided by the U.S. General tee's mission and specific duties and the charter is then forwarded to Services Administration's (GSA) Committee Management Secretar- GSA's Committee Management Secretariat and to the U.S. iat. GSA has had the responsibility for overseeing the FACA since Congress for final review. Following a required public notification 1977. period, the committee may begin operation. GSA's Role Under the FACA Committee Management Officer and Designated Federal Official With approximately 1,000 advisory committees in existence at any given time, special attention is required to assure compliance with The Federal Advisory Committee Act also provides that each the FACA, the Freedom of Information Act, and related regulations, agency sponsoring a Federal advisory committee must appoint a as well as to encourage effective and efficient use of committee Committee Management Officer to oversee the administration of the Act's requirements. resources. While Executive Branch departments and agencies are responsible In addition, a Designated Federal Official must be assigned to each committee to: for continually reviewing committee performance in these areas, the General Services Administration was designated by the President in Call and adjourn committee meetings; 1977 to monitor committee activities governmentwide. As part of this responsibility, GSA: Approve agendas; Conducts annual reviews of advisory committee accomplish- Maintain required records on costs and membership; ments; Ensure efficient operations; Responds to inquires from agencies on establishing new Maintain records for availability to the public; and committees or the renewal of existing groups; and Provide copies of committee reports to the Committee Manage- Prepares an annual report covering a summary of committee ment Officer for forwarding to the Library of Congress. activities. Termination of a Committee's Charter member should assure that he or she receives adequate information from the sponsoring organization and completes any required ap- Unless the renewal of a committee charter is justified under the pointment papers and disclosure forms prior to service on a committee. FACA, the charter is automatically terminated after a two-year period (or as otherwise provided by law). Oral briefings and other explanatory material may be obtained through the sponsoring organization's designated ethics official, Advisory Committee Members Committee Management Officer, or from the Office of Government Ethics, which has governmentwide jurisdiction on Federal ethics Federal advisory committee members are drawn from nearly every issues. occupational and industry group and geographical section of the United States and its territories. The FACA requires that committee Limits on Membership Terms memberships be "fairly balanced in terms of the points of view represented and the functions to be performed." Each agency sets limits on the lengths of terms for serving on As a result, members of specific committees often have both advisory committees to allow for continually new membership. expertise and vocational skills that parallel the program responsibili- Generally, members are appointed to a two-year term. ties of their sponsoring agencies. In balancing committee member- ships, agencies are expected to assure that major--and sometimes Open Access to Committee strongly opposing--viewpoints are represented to provide a Meetings and Operations foundation for developing advice and recommendations that are fair and comprehensive. Under the provisions of the Federal Advisory Committee Act, Federal advisory committees must: Appointing Committee Members Arrange meetings for reasonably accessible and convenient locations and times; Agency officials, Members of Congress, the general public, or pro- fessional societies or current and former committee members may Publish adequate advance notice of planned meetings in the nominate potential candidates for membership. Federal Register; Selection of committee members is made based on the FACA's Open advisory committee meetings to the public (with some requirements and the potential member's background and qualifica- exceptions--see the section on "Government in the Sunshine Act" tions. Final selection is made by agency heads or their delegates. below); Prior to accepting an appointment with a Federal advisory commit- Make available for public inspection all papers and records, tee, each prospective member should meet with the appropriate including detailed minutes of each meeting; and agency Committee Management Officer and designated ethics Maintain records of expenditures, with limited exceptions, for officials to discuss duties and obligations, allowable expenses and public inspection. compensation limitations. Government in the Sunshine Act Federal Conflict of Interest Laws Advisory committee meetings are closed or partially closed to the Agency officials must provide prospective advisory committee public based upon provisions of the "Government in the Sunshine members with information regarding any applicable standards of Act" (Public Act 94-409, September 13, 1976). Examples of conduct--including those imposed by Federal conflict of interest meetings that may be closed under the FACA are: statutes. In some instances, members may be subject to special limitations during the course of their service on an advisory commit- Those including discussions of classified information; tee. For some members, these restrictions also may apply (for Reviews of proprietary data submitted in support of Federal grant limited periods) after their committee assignments have ended. applications; and Some agencies may impose additional administrative requirements Deliberations involving consideration of personnel information as well. To avoid potential conflicts, each advisory committee protected by the Privacy Act (Public Act 93-579, December 31, 1974). For More Information For more information on the requirements of the Federal Advisory Committee Act, contact the General Services Administration's Committee Management Secretariat at FTS/202 523-4884. Copies of the following information materials also may be obtained through the Committee Management Secretariat: Annual Report of the President on Federal Advisory Commit- tees (for current fiscal year) Federal Advisory Committee Act (is in Annual Report) Government in the Sunshine Act (excerpt is in Annual Report) GSA Final Rule on Federal Committee Management (is in Annual Report) List of agency committee affiliations (is in Annual Report) The Federal Advisory Committee Act: An Overview Other materials, such as samples of nominating letters and charters, are available from each agency or call GSA's Committee Management Secretariat at FTS/202 523-4884. Today, an average of 1,000 advisory commit- tees with more than 20,000 members advise the President and the Executive Branch on such issues as the disposal of high-level nuclear waste, the depletion of atmospheric ozone, the national fight against Acquired Immune Deficiency Syndrome (AIDS), and efforts to improve the economy-such as those suggested by the President's National Eco- nomic Commission. Cover engraving: Washington Presiding in the Convention, 1787, J. Rogers after Wageman. No date. nsf Committee Management Guide REVISED AUGUST 1990 Prepared by the Division of Personnel and Management WHEN and and Cabine the san # the was the THE X with of a and we TOTAL O 100 3 of was W the WE a 3 CMG FOREWORD This Guide is written primarily for the Designated Foundation Officials of NSF advisory committees and panels, but contains useful information for anyone working with committees in other capacities. Contents are based on pertinent laws (the Federal Advisory Committee Act (FACA) and the Government in the Sunshine Act), regulations (GSA Regulations on Advisory Committee Management), and NSF policy and procedures embodied especially in NSF Manual 1, Chapter IV-100, "Committee Management," NSF Manual 15, "NSF Conflict-of-Interest Rules and Standards of Conduct," and NSF Manual 10, "Proposal and Award Manual". The Forms Window has copies of ADM IV-100 and other NSF issuances. The Committee Management Officer (CMO) and the Office of the General Counsel have copies of the GSA Regulations, FACA, and the Government in the Sunshine Act. This revision of the Guide incorporates the new consultation form that replaces the letter of consultation and charter, and includes guidance for subcommittees and the new Special Emphasis Panels, as well as how to select the proper type of group for advice. If you have any questions, please contact Ms. Becky Winkler, the Committee Management Officer, in the Management Analysis Branch of the Division of Personnel and Management. She can be reached at 357-7363, in Room 208. managet J. Windus Margaret L. Windus Director, Division of Personnel and Management Revised: August 1990 i CMG TABLE OF CONTENTS Page Foreword i Chapter I - Introduction A. Basic Information 1 B. Responsibilities 5 Chapter II - Establishing An Advisory Committee A. Overview of the Establishment Process 7 B. Designating Members 9 C. Charter Preparation 12 Chapter III - Holding Meetings A. Before the Meeting 16 B. During the Meeting 20 C. After the Meeting 22 Chapter IV - Disseminating Advisory Committee Information to the Public A. Information at Committee Meetings 24 B. Reports on Committees 24 C. Reports by Advisory Committees 26 Chapter V - Renewing/Amending Charters and Terminating Committees A. Renewals 27 B. Amendments 27 C. Expirations and Terminations 28 APPENDICES Signature Authorities for Committee Management Documents A-1 Consultation on Federal Advisory Committee (form) A-2 Example of Information to Include in Consultation Form/Charter A-4 Sample Notice of Establishment A-6 Timetable for Establishing an Advisory Committee and Announcing First Meeting A-7 Notice of Meeting Format A-8 Sample Notice of Renewal A-9 NSF Form 1230, "Conflicts-of-Interest Statement for NSF Advisory Committee/Review Panel Members" A-10 Example of Minutes of Proposal Review Meeting A-12 Types of Groups for Getting Advice A-14 Example of a Closed Meeting Report A-16 NSF Form 1216, "Multi-Campus System Waiver" A-18 SUBJECT INDEX iii ii CMG I A CHAPTER I - - INTRODUCTION A. BASIC INFORMATION 1. What is an advisory committee? b. publish a notice in the Federal Register of their establishment and An advisory committee is any group renewal (see Chapter II); formed or used by a Federal agency with one or more non-Federal c. publish a notice in the Federal members that is asked to give an Register of all meetings which must agency advice. be open to the public with few exceptions (see Chapter III); The name or designation of the group does not in any way affect whether d. keep minutes of all meetings and the group is an advisory committee. make them available to the public Just because you call the group with few exceptions (see Chapter III); something other than "advisory committee," does not mean it is not e. be renewed every 2 years or they legally an advisory committee. See terminate (see Chapter V); and Appendix J for guidance on which type of group to use. f. at least annually, account for each committee's costs, activities, and 2. What is "FACA"? members (see Chapter IV). The Federal Advisory Committee Act Further details and instructions for (FACA) is the law on which the each of these requirements are Committee Management Regulations located in the remaining chapters, as and NSF policies and procedures are indicated above, and in appendices to based. All Federal advisory this Guide. committees are subject to the requirements of FACA. (See 4., 4. Are there circumstances when a below for exceptions.) committee would not be subject to FACA? 3. What are the requirements under FACA? Yes. The following criteria define when an advisory committee must Advisory committees must: comply with FACA, but there may be exceptions: a. be chartered (see Chapter II); 1. group provides advice and recommendations to a Federal official; 1 CMG I A - consists of one or more non- - and - Federal members, and 2. group has at least one non- - discusses and deliberates on any Federal member. subject. Examples of exceptions to these 5. Is there any reason to charter a criteria are provided below. committee even though it wouldn't be required? 1) FACA would not apply where advice and recommendations are Yes. You might want to charter a sought from only one individual, e.g., a committee if you want to have its single person advises a Program meeting(s) publicized or if you expect Officer in the conduct of a site visit. the committee's recommendations to be controversial (and therefore, might 2) An exclusion of criterion 1 is if have widespread and/or long-term advice is sought from individual attention). attendees at a meeting without the benefit of discussion or deliberation. 6. What about subcommittees; do The reason is that the group had not they have to be chartered? been used to obtain advice or recommendations. If, however, It depends on whether you want the discussion occurs, the assumption is advice directly or not. A that this is a "source of advice and subcommittee may function recommendations" regardless of independently of its parent committee whether or not the group actually or may offer recommendations to the comes to a consensus. Foundation officials through the parent committee. NSF cannot 3) Criterion 1 is not met where accept or use advice directly from a advice is not given at meetings, e.g., subcommittee unless that a) Federal and non-Federal officials subcommittee is separately chartered exchange facts or information, or b) a under FACA. Otherwise, the work of group requests a meeting with a a subcommittee must be given to the Federal official to express the group's chartered parent committee for views. consideration before it is accepted by NSF. 4) Criterion 2 is not met where all members of the group are Federal A subcommittee may be composed of employees. members drawn in whole or in part from the parent committee. In summary, FACA has jurisdiction over any group that: 7. If I don't have to charter my subcommittee, is there anything else I - an NSF official convenes or uses, need to do? 2 CMG I A A subcommittee, whether chartered However, you need not consider separately or not, must comply with chartering where a non-Federal the requirements of FACA including person advises a Program Officer publishing notice of meetings at least since this is not a "group" but one 15 days before all meetings. A person advising the Government. meeting must be open to the public unless it, or a part thereof, is closed Like other advisory committees, a site pursuant to law with the explicit visit group must be balanced in its approval of the Office of the General membership in terms of the points of Counsel. Even if closed in its view represented and the functions to entirety, notice must be published in be performed. the Federal Register. 9. What alternatives to chartering do All records, including everything I have? received by a committee and everything it produces (e.g., drafts and You could use an existing NSF detailed minutes of meetings), must committee, use another agency's be kept until the committee is committee, or you could hold public disbanded. hearings. All records also must be available to In fact, as part of the consultation the public for inspection and copying form in the establishment process, unless they, or portions of them, must you have to tell GSA why you be withheld under one of the decided not to use another method to statutory exemptions such as where meet your needs instead of setting up disclosure would constitute an a new committee. (See Appendix J unwarranted invasion of personal for alternatives.) privacy. 10. Who can establish an advisory 8. Do I have to charter a site visit committee? group? The Director, NSF, has delegated to Site visit groups must be chartered Assistant Directors and Staff Office under FACA: Directors responsibility for . establishing, as well as renewing and - if they have one or more members terminating, committees. (See who are not employees of the Federal Appendix A, Signature Authorities for Government and Advisory Committee Documents.) - if the group's discussion or 11. If I need to charter a committee, deliberation is used as a source of what do I have to do to establish it advice or recommendation, even if and how long does it take? the group does not give specific advice or recommendations. 3 CMG I A It takes about 2 months to set up a Basically, NSF uses two names for committee. (See Appendix E for advisory groups advisory timetable.) Briefly, you have to: committees and advisory panels. a. provide the CMO with Advisory committees generally information about the proposed operate at the directorate or division purpose, membership, meeting level and provide advice, frequencies, costs, etc. and obtain recommendations, counsel, and internal (Division Director and critical review for specific program, Assistant Director) approval; division, and directorate activities. b. consult with GSA by a Advisory panels, on the other hand, consultation form/charter (the CMO generally operate at the program level handles this), signed by the Division and are mostly involved with proposal Director and Assistant Director (see review activities. Appendix B); Both committees and panels can be C. notify the public by publishing a used for program oversight. Notice of Establishment in the Federal Register (the CMO handles A new type of advisory panel is the this) (see Appendix D); and Special Emphasis Panel (SEP). The SEP is designed to encompass review d. file the consultation of proposals and applications for the form/charter with Congress (the various special initiatives in the CMO handles this). Agency, e.g., PYI, ROW, and SBIR. Only one SEP is established in each See Chapter II and Appendices B - E division with special initiative for specific details and requirements proposals for review. The for establishing an advisory membership of the SEP depends committee. upon the types of proposals needing review. 12. Who prepares the paperwork? See Appendix C for more information The program official who wants the on SEP's. committee prepares the documents. However, once the documents are 14. What would happen if I had an signed, the CMO processes them and advisory committee that wasn't serves as liaison with the GSA established under the Federal Committee Management Secretariat, Advisory Committee Act? Office of the Federal Register, The committee would be illegal but Library of Congress, etc. you probably wouldn't go to jail. 13. How are advisory committees structured at NSF? However, you might be charged for the illegal committee's expenses and 4 CMG I A you could be sued, particularly if the f. adjourns the meeting when he or committee gave advice on policy, she determines that adjournment is in money, or regulations. the public interest; Also, the advice and g. assures that the committee's recommendations of the committee recommendations are reviewed might be considered invalid. promptly and accepted advice is implemented as appropriate; If you discover you have a group that should be chartered, contact the h. maintains and provides minutes, CMO. reports, documents (subject to FOIA), costs, and other information about the B. RESPONSIBILITIES committee; 1. Assistant Director or Staff Office i. assures the committee's efficient Director oversees compliance with operation and that the FACA FACA in his or her organization. requirements are met; and 2. Designated Foundation Official j. is familiar with the openness (DFO) is the full-time or permanent provisions of FACA. (See Chapter part-time NSF staff member III.) designated by the Assistant Director/Staff Office Director to be 3. Committee Management Officer responsible for the committee. (CMO) is designated by the Director to ensure that legal and regulatory The DFO: requirements are met, to provide advice and guidance to NSF officials, a. approves or calls and attends and to serve as liaison with other committee meetings; agencies about NSF advisory committees. b. approves the agenda; The CMO: C. ensures that the Notice of Meeting is published in the Federal a. reviews all proposed Register and that minutes are establishments, renewals, or charter prepared and certified by the amendments for overall compliance Committee Chair on a timely basis; with FACA, GSA Regulations, and NSF policy; d. ensures that all committee members are instructed on current b. coordinates and/or summarizes ethics laws and regulations; input to required committee management reports; e. guards against committee member conflicts of interest; c. maintains a central repository for committee management documents, 5 CMG I B e.g., charters (or consultation forms) Advisory committees are usually and membership lists; chaired by a member of the committee and selection (or election) d. provides information to the public of a chairperson is local option. In on how to obtain copies of reports some cases the chairperson is elected and minutes of each committee; and by the committee; in others, the responsible Division Director or e. makes determinations to close Assistant Director selects the meetings to the public when the chairperson. meetings are concerned with proposal review or program oversight. Advisory panels usually are chaired Determinations for closing meetings by an NSF staff member, usually the for other reasons must be made by Designated Foundation Official. the Director, NSF. 7. Office of the General Counsel 4. Committee Management (OGC) provides legal advice and Secretariat (CMS) is part of the interpretation of FACA and reviews General Services Administration and all requests to close committee is responsible for overseeing and meetings to the public. reporting on Federal advisory committees. 5. OMB Budget Examiner for NSF programs and activities reviews all NSF requests to establish advisory committees. 6. Chairperson presides over committee meetings and certifies to the accuracy of minutes by signing minutes. 6 CMG II A CHAPTER II - ESTABLISHING AN ADVISORY COMMITTEE A. OVERVIEW OF THE ESTABLISHMENT PROCESS 1. What documents are required to C for examples of information to establish an advisory committee? include on the consultation form). The CMO will also ask you to As stated in Chapter I, to establish an prepare a notice of establishment (see advisory committee you need a Appendix D for a sample Notice of completed consultation form (which Establishment). replaces the letter of consultation and charter) and a Notice of Once you have completed the Establishment. consultation form and your division and directorate officials have signed See question 3., below for details of it, the CMO handles the concurrence the process. process. 2. How long can an advisory GSA reviews the documents for committee be in existence? compliance with FACA and sends a copy of the consultation form/charter Advisory committees are established to the NSF Budget Examiner at for a maximum of 2 years. However, OMB. The Budget Examiner uses a a committee can be renewed, in 2- working knowledge of NSF to year increments, for as long as there determine the real need for a is a need for it. You may also have a committee. The Budget Examiner much shorter duration, depending and GSA will jointly decide upon the time required for the concurrence in the establishment. committee to accomplish its objectives. When GSA concurs, the CMO publishes the Notice of Establishment 3. Exactly how does the in the Federal Register. establishment process work in terms of paperwork flow? The CMO files the consultation form/charter with Congress, GSA, The CMO will give you instructions and the Library of Congress 15 on what information is necessary for calendar days after the Notice establishment and will work with you appears in the Federal Register. in creating the consultation form. For SEP's, the CMO will give you a The committee is effective on the "file partially completed consultation form date" (date consultation form is sent for completion and approval within to the Library of Congress) which the your directorate (see Appendix B for CMO types in the upper right corner the consultation form and Appendix of the consultation form/charter. The 7 CMG II A CMO will also send you a copy of the If OMB or GSA has questions or filed charter. problems with the establishment, they call the CMO. The CMO either If you have any questions, contact the serves as liaison between you and Committee Management Officer. GSA or asks you to call OMB/GSA (See Appendix E for the timetable.) to provide additional information. 4. Who signs the consultation 6. Suppose I have to get a committee form/charter and Notice of established in a hurry, what do I do? Establishment? If you need a committee established a. For a directorate-level advisory in less than 2 months, contact the committee, the Assistant Director CMO immediately. In emergency signs the Sponsoring Official block situations GSA will take less time for and the Other Concurring Agency their review and will waive some of Official block is left blank. the time requirements for Federal Register notices. See Appendix E for b. For all other committees and a detailed timetable and summary of panels, the cognizant Division procedures and review levels involved Director signs the Sponsoring Official in establishing a committee and block and the Assistant Director signs announcing its first meeting. the Other Concurring Agency Official NOTE: If your first meeting will block. have a closed session, let the CMO In all cases, the position title of the know so that the determination to Designated Foundation Official is put close the meeting to the public can be in the Remarks section. made 30 days before the meeting date. In addition to signing the consultation form, the CMO signs the Notice of 7. Who keeps the records of a Establishment. committee and what must be kept? 5. How will I know when the The CMO is responsible for some committee is established? documents, you are responsible for the others. The CMO maintains a The CMO will call you as soon as central repository of all advisory GSA informs her of their decision. committees' original charters and (GSA must decide within 15 days consultation forms, other documents from receipt of consultation form.) related to the establishment, renewal, GSA also follows up with a letter to and/or termination, and the Assistant Director/Staff Office administrative reports such as those Director and with a copy to the required by FACA or GSA CMO. Regulations. 8 CMG II A You must keep all other records until the committee terminates. (See V- 2. What do I need to consider when B.2 for information on records selecting members? retention.) Records include reports, transcripts, minutes, appendices, You need to consider: a) balanced working papers, drafts, studies, membership, b) number of members agenda, or other documents that were needed to perform the function, and made available to or prepared for or c) terms of service. These by your committee. considerations are described below. Additionally, all records must be a. Balanced Membership. FACA available to the public for inspection and Federal Advisory Committee and copying unless they, or portions Management Regulations require that of them, must be withheld under one Federal advisory committees maintain of the statutory exemptions such as balanced membership. where disclosure would constitute an unwarranted invasion of personal This means you need to consider a privacy. cross-section of those directly affected, interested and qualified, as For SEP's, where different Program appropriate to the nature and Officers manage different panel functions of the committee. meetings, the DFO should be careful Committees requiring technical to ensure that each Program Officer expertise should include persons with provides to the DFO copies of these demonstrated professional or personal documents for reports and retention. qualifications and experience relevant There should be only one location to the functions and tasks to be designated for the retention of SEP performed. records in each division. NSF has specific guidance on the selection of members in Chapter I of B. DESIGNATING MEMBERS the Proposal and Award Manual (PAM). 1. Do I have to wait until my committee is effective before I can The Director, NSF, is interested in designate my members? maintaining balanced membership on NSF committees and at least annually No, you can carry out all reviews with each Assistant Director administrative tasks, including the statistical report on composition designating members, before the for his/her advisory committees. (See committee is established. You may Chapter IV B for more on this not, however, operate, meet, or take report.) any action as a committee until it is established (i.e., "filed" with Congress Below are general guidelines on following GSA's review and balanced membership. publication of Notice). 9 CMG II B (1) Individual qualifications - each committee to 5 for proposal review member should have recognized panels. pertinent expertise or should have demonstrated ability as a reviewer. The exceptions are the Special Emphasis Panels that have many (2) Fields of expertise - within more members serving during an reasonable limits, members' fields of entire year because the membership specialty should be complementary is fluid, depending upon the agenda for the meetings. within the group. (3) Public impact - where pertinent, c. Terms of Designation. Members members should be representative of normally serve up to 3 years. geographic regions, organizations, or Membership should be staggered so segments of the public especially that approximately one-third of the where directly affected by issues membership is replaced annually. under consideration. Again, exception is made for SEP's, (4) Academic and nonacademic where members serve only during the impact - members from the academic particular meeting for which they are community should represent small, designated. medium, and large institutions, including PUI's, as well as public and 3. How do I get members "on board"? private institutions. Members, including Federal members, Whenever possible, concurrent or are designated by a letter of successive designations of individuals designation. Each directorate/office from the same institution should be has its own internal requirements for avoided. Representatives from selection approval. Once the outside the academic community are selection is approved, you prepare a also desirable in most instances. letter of designation. The letter is signed by the respective program (5) Underrepresented views - official, but usually not lower than the special attention should be paid to division director level. obtaining qualified persons from underrepresented groups such as 4. What kind of information do I need to include in the designation minorities, women, younger age groups, and the disabled. letter? b. Number of Members. GSA In addition to informing the suggests a maximum of 25 members prospective members of their duties, for committees with an Agency-wide obligations, and term of designation, mission and 12 for all others. The you should ensure that both Federal average number of members per members and non-Federal members committee at NSF is 12 with a range are aware of allowable expenses and of 20 for a directorate-wide 10 CMG II B compensation limitations as well as OGC. Be sure the information on NSF's conflicts requirements. that form is complete and accurate. 5. What are the conflicts For SEP members, you will need to requirements? get new submissions of NSF Form 1216 each time they are designated, Before any member (including where appropriate. Federal members) can serve, you, as Designated Foundation Official, must 7. Are all advisory committee ensure that each potential member members paid a fee for their services? has read and signed NSF Form 1230, "Conflicts of Interest Statement for No. There is no requirement to pay NSF Advisory Committee/Review advisory committee members. Some Panel Members." (See Appendix H members will not want compensation for copy of NSF Form 1230.) and some are not allowed to be paid. Federal members, for instance, are After reading and signing the not offered compensation by law (5 Statement, members return the form USC 5533, 5536; 31 USC 484). to you to resolve any future conflicts issues. You must retain the forms You should generally assume that all and record any action taken. (See non-Federal members wish to be paid NSF Manual 15, Subpart B., Section our standard $100 a day fee unless 681.20 (e.).) Also, at meetings you they tell you otherwise. must resolve conflicts questions. Regardless of whether members are For SEP members, you will need to paid a fee or not, they are currently get new submissions of NSF Form authorized to be reimbursed up to 1230 each time they are designated. $160/day for costs of hotel accommodations, meals, taxis, and See Chapter III for more information miscellaneous expenses when in travel and NSF Manual 15, Subpart B., status. Section 681.20 (c.). 8. How are advisory committee 6. Are there any other forms members paid? concerning conflicts that are needed? Members are paid under the guidance Yes. If a member is from a state of FIN I Section 170. university system that has several semi-autonomous campuses, before Essentially, advisory committee the meeting you complete an NSF members are paid from PD&M funds Form 1216, "Multi-Campus System and advisory panel members from Waiver." (See Appendix L.) You program funds. should keep one copy in the committee files and send the other to Formal paperwork to compensate members is under a travel 11 CMG II B authorization and reimbursement responsible for it, and what is it going obtained through a memorandum to to cost. DFM for non-Federal members. The Division Director (or cognizant 2. How can I know what costs my Assistant Director) signs the committee will have before it's in reimbursement memorandum. operation? Federal members must submit a Part of the decision process in travel voucher and attach appropriate determining if you need a committee, receipts. includes thoughts about activities you would want a committee to perform The DAS travel contractor will obtain as well as the amount of resources airline tickets for you. (staff time and member costs) available to you for the committee. You should contact your Using this information, you can Administrative Officer for specifics on estimate committee costs. preparing travel authorizations and reimbursing members and latest cost 3. How do I calculate personnel levels for fees, travel, and other payments, as listed on the consultation form? expenses. Personnel Payments include: C. CHARTER PREPARATION - non-Federal member 1. How do I know what to include in compensation; my consultation form (previously a charter)? - Federal members prorated salary including fringe benefits (includes The CMO will provide you with a NSF staff who are chairpersons); form to complete and give you advice on filling it out. See Appendix B for Note: This category includes members the format to use for the consultation from other Federal agencies and any form and Appendix C for examples of NSF employees who are considered information to include on the form. full-voting members of an advisory group. In most cases, this applies to This section provides information on Program Officers who serve as areas you need to address when chairpersons of proposal review requesting GSA concurrence on panels. You should compute Federal establishing a committee. member compensation, including fringe benefits, as you would staff Basically, what GSA needs to know is costs, except you don't compute the what the committee will do, how long person years. (See 7, below.) will it exist, why another existing group can't do it, what its - Federal staff. This is comprised membership will be, who's going to be of multiplying NSF staff time (see 12 CMG II C below) by the average annual salary 6. What do I do to calculate staff of each staff member. The cost support years? includes fringe benefits (calculated by multiplying the amount of Staff Support Years is comprised of compensation by 14%); and any time Federal employees spend in support of the advisory committee. - non-member consultant This includes time spent attending the compensation. advisory committee/panel meeting. (See 8., below for an exception.) You may estimate member costs using your own formula or you may Do the following for each individual follow the guide below. staff member: Compensation: multiply the number a. Total the estimated number of of non-Federal members who will days (or part of a day) that the staff receive compensation by $100 (fee). member is expected to work on the (See B.7. for who can receive committee, including meeting days. compensation.) Then multiply the total compensation cost by the b. Multiply the estimated number of number of meeting days. You would days the staff member is expected to use this procedure for determining work on the committee by 8 hours to non-member consultant costs as well. get the total hours/year. 4. How do I compute costs for Travel c. Divide the expected annual hours and Per Diem, as shown on the of work on the committee by 2087 consultation form? (available hours per year) to get the percentage of a work year to be spent Travel and Per Diem is calculated for on the committee. non-Federal and Federal members, NSF staff, and non-member d. Multiply this percentage by the consultants. respective staff member's annual gross salary to get cost per year for You may compute travel costs by that staff member's work on the multiplying the number of members committee. on the committee by $500 (average round-trip transportation cost and Then, when you've done this for each expenses). staff member, add all of the salaries and percentages of time expected to 5. What about "other" costs? be spent on committee work for the total staff costs and time. Other costs include items such as postage, rental of conference space in a hotel, printing costs, and court reporter fees. 13 CMG II C 7. Give me an example of a Program Officer (who is not a member of the committee), Program Assistant, and Clerk-Typist who provide staff support for a committee that holds 3 2-day meetings a year. DAYS PER POSITION Program Program Clerk- Total Years Officer Assistant Typist and Costs Attending Meetings 6 6 0 + Admin. Time 6 6 15 = Total Days 12 12 15 (X 8 Hrs/Day=) Hrs/Staff/Yr 96 96 120 Divide by 2,087 Hrs/Yr = Staff Time/Yr 0.05 + 0.05 + 0.06 = 0.16 per.yrs. .2 Staff Years X Anl Salary $67,112 $21,810 $17,312 = Personnel Cost $3,355.60 + $1,090.50 + $1,038.70 = $5,484.80 X 14 % benefits $ 767.87 benefits + $5,484.80 Pers. Cost $ 6,252.67 Total Cost Note: "Administrative time" could involve arranging meeting, assigning proposals for review, sending proposals out in advance of meeting, typing minutes, preparing reports, arranging/preparing travel documents, preparing agenda/meeting notice, etc. 14 CMG II C 8. If a Program Officer is also a 9. Do I have to break out all of the member of an advisory panel, e.g., above costs in my consultation chairperson, would you count the form/charter? days he attends the meeting under "staff support" or "Federal member Yes, as shown in Appendix B, the compensation"? form submitted to GSA for concurrence includes cost estimates You would include meeting for the current and next fiscal year. attendance under Federal member compensation. However, you would include his/her time due to "staff work" before and after the meeting under staff costs and staff years. 15 CMG III A CHAPTER III - HOLDING MEETINGS A. BEFORE THE MEETING 1. What is the first thing I should do mentioned earlier, more time is to plan for a meeting? needed to process a meeting that is closed or partly closed to the public. If the committee is new, you should See Appendix F for meeting notice be sure it will be formally established requirements. ("filed") at least 20 days before you plan to meet. You may, however, Instead of preparing a notice of designate members and determine meeting, program staff with SEP's meeting logistics (date, location, etc.) may provide the CMO with meeting between the time the consultation information, i.e., panel name, dates, form is delivered to GSA and the times, agenda (e.g., PYI), type (e.g., charter (consultation form) is filed. closed to the public), and room number (and building, city, state, if When you inform members officially not at NSF). The CMO will then of the meeting and provide them with prepare the notice of meeting and material to prepare for discussions, have it published in the Federal include NSF Form 1230 for signature Register. and returning to you. Where appropriate, provide members with NSF Form 1216 also. (See II B-5 & 2. Do I have to open my meeting to 6; Appendices H and L for forms.) the public? At the same time you set the meeting Yes, the Federal Advisory Committee date, you should decide on the type of Act states that each advisory meeting you need, i.e., open to the committee meeting shall be open to public, closed, or part open. See the public. However, FACA allows questions below for criteria and for the exemption of certain types of instructions for closing a meeting. meetings from being open. At NSF, we use the below-listed exemptions As soon as you've decided the from the Government in the Sunshine meeting date, you should consider the Act to close meetings for proposal timing for announcing the meeting in review and oversight. the Federal Register and requesting a determination to close the meeting, if You may close a meeting, or part of a necessary. meeting, only where the specific agenda item addresses: The CMO will sign and publish the notice of meeting and will process the - trade secrets and commercial or determination, if meeting is to be financial information obtained from a closed or part closed to the public. As 16 CMG III A person that is privileged or send your meeting notice (or confidential (exemption 4); and pertinent data) to the CMO at least 30 calendar days before the meeting. - information of a personal nature where disclosure would constitute The notice or meeting data should a clearly unwarranted invasion of include a request to close all or part personal privacy (exemption 6). of the meeting and the reason (proposal review or oversight) and Discussions of the general thrust of a should be signed by the DFO or program or programmatic changes designee. If the meeting is to be part should not be closed. Where open to the public, you should possible, these discussions should be indicate which part is to be closed. placed on the agenda in an open This document serves as your request session. to close a meeting. There will be instances, though, The CMO has been delegated where discussion of non-exempt authority to receive requests to close material (e.g., proposals that have meetings for proposal review and been awarded) is inextricably oversight and to make determinations intertwined with the discussion of that these meetings can be closed to exempt material and no further the public. In all cases, the CMO separation is practical. When this sends the request to the Office of the happens, that portion of the meeting General Counsel for review. (See may be closed. Appendix F for items required for notices.) 3. Can I close my meeting when the Committee of Visitors conducts If your reason for closing a meeting oversight? (or part of a meeting) is for other than proposal review or oversight, Yes and no. Generally, the above you should submit a request to the exemptions will not support closing an Director at least 30 calendar days oversight meeting in its entirety; they before the scheduled meeting. The will support only those portions in request should state the dates and which specific declined proposals or times of the meeting and should cite particular peer reviews are to be the specific exemptions of the discussed. Government in the Sunshine Act (Sunshine Act) that justify closure. 4. What do I have to do to close a meeting? If the Director determines that the request is valid, he issues a The procedures to close a meeting determination that the meeting may depend on the reason you want it be closed. A copy of this closed. Generally, meetings are determination is made available to closed for proposal review or the public upon request. (OGC and oversight. In those cases, you should 17 CMG III A the CMO maintain a copy of the Sunshine Act for your information.) 7. What happens if the meeting has to be cancelled, postponed, or 5. If committee members plan to otherwise changed? discuss committee business at an informal gathering, should that If there's time, the CMO will publish discussion be made part of the formal a cancellation or postponement notice agenda and meeting announcement? in the Federal Register. The CMO could also publish an amendment to Yes. You should discourage planned the notice for such things as discussion of committee business significant changes in the agenda or outside announced meetings. The type of meeting, or in the number of GSA Committee Management days the meeting is to be held. Secretariat believes that informal meetings or gatherings of committee If you want to change from an open members in which substantive to a closed meeting, contact OGC or committee business is discussed the CMO immediately for guidance. should be disclosed if they occur. If you need to change the time of the GSA recognizes the administrative meeting or room number at the last difficulty in this area and believes that minute, you could phone those people the sponsoring agency can best you knew were planning to attend and determine whether a specific post a sign on the door of the gathering of committee members scheduled room directing people to constitutes an advisory committee the correct room. You would, of meeting. When in doubt, contact course, announce any changes in time either the Office of the General at the meeting itself. Counsel or the Committee Management Officer. 8. Why must I publish a meeting notice if the meeting is to be closed to 6. Suppose it's not possible to send the public? the meeting notice on time, what do I do? FACA requires that notices of all meetings be published in the Federal You can still publish the notice and Register, except for reasons of have your meeting but you must national security. include the reason for being late with the meeting notice to be published in 9. How many copies of the meeting the Federal Register. notice do I need? If your meeting is to be closed to the You need only send one copy whether public, you should inform the CMO you provide 1) just the meeting data, immediately even if you're not sure of not in Notice format, or 2) the notice the exact date of the meeting so the in the proper format. determination to close can be made. 18 CMG III A 12. What happens if I have to make a The CMO signs all notices of change in the agenda after the meetings and will have the notice meeting has started? reproduced and distributed to: You would make an announcement of - Office of the Federal Register; the change as soon as you are aware of it. However, as stated earlier, you - Committee Management files (also may not change from a closed to an documents determinations to close open meeting because the public meeting); and would not have had notice of an open meeting so they could attend. - Contact person listed in the meeting notice with date signed 13. If I need to have an emergency indicated. closed session at an open meeting, what should I do? Additional copies are sent to the Office of the Director, OBAC (for If the entire meeting was announced transmittal to the NSB), OLPA (for as open to the public, you probably information to Congress), and to the won't be able to close the meeting. NETWORK editor for internal When in doubt, you should publication. immediately contact the Office of the General Counsel or the CMO for 10. Do meetings have to be held at guidance. NSF? 14. Suppose I have a 2-day meeting No. All you have to remember is with the closed session scheduled for that the meeting facility should be the second day but the first day's reasonably accessible to all who may session ended early enough for me to attend (including disabled persons). begin the closed session. Could I begin the closed session or would I 11. Do all meetings have to be held have to wait until the next day? during the week and during normal working hours? You could start the closed session early, since no members of the public No. Some meetings start after 6 p.m. would be invited to the closed session. or are held on weekends. If prior arrangements are required for entry All you would need to do is announce to the building after hours, you would that the business scheduled for the indicate in the meeting notice that open session was completed and that anyone planning to attend would have the closed session would now begin. to notify you before the meeting. You would probably want to have a Then you would provide building break at this point to allow members security with a list of potential of the public to leave the meeting. attendees. 19 CMG III A 15. If I had the reverse situation, "Federal official" includes IPA's and could I do the same thing, that is, Visiting Scientists ("rotators"). start the open session early? 2. What are some of the things I, as No, since some members of the public DFO, need to be aware of while the may be planning to attend the open meeting is going on? session. If you began the open session early, you'd run the risk of a. You should have all members, having adverse publicity or being staff, and visitors sign a roster. sued. You should consult OGC before considering this course of b. You must have someone take action. minutes, regardless of whether the meeting is open or closed. (This is 16. Do I have to notify anyone other required by law.) See 5., below, for than the CMO (for notice content requirement for minutes. publication) when I hold a meeting? c. If the meeting is for proposal review, the Conflicts-of-Interest Although the law does not require Regulations require you to read to any other notification, you may wish the panelists a statement concerning to issue a press release or use the conflicts (see NSF Manual 15, Section NSF electronic Bulletin Board to 681.25(c)). notify NSF staff. The CMO provides meeting notices of open/part-open d. You must resolve all conflicts meetings to the editor of the and record in the minutes the action NETWORK for internal publication. taken. B. DURING THE MEETING 3. Who should take minutes? That varies. Some program officials 1. Do I have to attend the entire have their support staff take minutes meeting? and some might do it themselves. For open meetings, some officials use Yes, according to FACA a designated a court reporter. officer or employee of the Federal Government shall chair or attend 4. Must the minutes be verbatim? each meeting. That person is authorized to adjourn the meeting No, just an accurate description of whenever he/she determines it to be each matter discussed and the in the public interest. "No advisory resolution, if any, made by the committee shall conduct any meeting committee. And, it is not necessary in the absence of that officer or to record individual votes, only the employee." (Public Law 92-463, decision. Section 10 (e).) 20 CMG III B 5. What is required to be included in C. a list of members of the public "detailed" minutes? who presented oral or written statements; First, it should be noted that the "detailed minutes" that FACA d. an estimated number of other requires may include information that members of the public present; may not be divulged to the public. (See IV-A.2 for information on e. a complete and accurate dissemination to the public.) description of each matter discussed and conclusions reached; and FACA or the Committee Management Regulations require that f. copies of each report or other document received, considered, or minutes include: issued by the committee. a. time, date, and place (and room number) of meeting; In addition, NSF policy requires that proposal review meetings should b. a list of committee members and include a statement to document agency employees who attended; certain conflict situations, such as when a panelist does not participate in discussions involving his/her institution or when a panelist has some affiliation with the proposer. SUGGESTED WORDING AND FORMAT: - The following person(s) had a conflict of interest: Member's Name Proposal # How Resolved (by DFO) John Doe 89-12345 left room Jane Smith 89-56789 did not participate in discussion 89-34545 nature of conflict was not so substantial to Henry Clark affect his judgment Note: Before the minutes are distributed to the public, you should block out any information that could be used to identify proposals that have been declined. Some divisions list panelist names and proposal numbers involved in conflict situations on a separate confidential list to guard against inadvertent disclosure of declinees. (See NSF Manual 15, Section 681.25(d) and (e) for more information and Appendix I for suggested format for minutes.) 21 CMG III B 6. If the meeting is closed to the what the procedures are for public public do I still have to have detailed participation. minutes? 8. Can I have a working luncheon or Yes. Minutes must contain all of the dinner? information listed in 5., above. Yes, just make sure you include it in However, when considering what to your meeting announcement. send to the public, minutes of closed meetings should be reviewed to 9. What happens if someone disrupts ensure that they do not divulge any the meeting? information that should be protected. (See Chapter IV-A for discussion If the situation warrants, you, as an about releasing minutes and other officer of the Government, can information to the public.) adjourn the meeting if you believe it to be in the public interest to do so. 7. If I have an open meeting, do I You could also call building security have to allow members of the public (357-7919 at NSF). to participate in the meeting? C. AFTER THE MEETING FACA requires that: 1. When are minutes due? a. Each meeting be held at a reasonable time and in a place While there is no specific time reasonably accessible to the public; requirement, minutes generally should be available 30 days after the meeting b. Any member of the public be date. permitted to file a written statement with the committee; and However, if your committee has its minutes approved by the full C. Any member of the public be committee at its next meeting and allowed to speak at the meeting if the you're not sure when the next meeting agency's regulations so permit. will be held, you may get the minutes approved by mail or electronic NSF has no standard guidelines on message. public participation in committee meetings. You (as DFO) should 2. Who prepares and signs the develop operating procedures that minutes? include provisions for appropriate opportunities for public comment. The Designated Foundation Official is You may develop these procedures responsible for assuring the with your committee members. preparation and distribution of minutes; the chairperson is The chairperson should let the public responsible for certifying that the know at the beginning of the meeting minutes are accurate. 22 CMG III C 5. Are there other materials 3. Who should receive copies of the concerning the panel meeting that I minutes? need to distribute externally? You should send minutes to the CMO Yes. If your panel reviewed and to anyone who asks for them, proposals, you automatically send the including the public, as well as to all proposer verbatim copies of peer committee members, and interested reviews and panel summaries, or affected staff. excluding the identity of the reviewer and the reviewer's institutional 4. If the minutes haven't been affiliation. Reports of site visit certified, and someone requests groups made in connection with the documents that were distributed at evaluation of a proposal must also be the meeting, can I send them out? sent to the proposer. (PAM VII-713 and O/D 90-12.) Yes. Do not hold these documents until minutes are ready for 6. Are panel summaries distribution unless the requestor asks the same as detailed minutes? that all material be sent at one time. No. FACA requires minutes; NSF Remember, documents that were requires panel summaries to received, considered, or issued at the document proposal review and inform meeting or that were made available proposers. to committee members must be available to the public upon request unless they meet one of the exemptions of FOIA. If the requestor also asks for minutes, you may tell him/her that you will send them after they are certified. 23 CMG IV A CHAPTER IV - DISSEMINATING ADVISORY COMMITTEE INFORMATION TO THE PUBLIC A. INFORMATION AT COMMITTEE MEETINGS 1. Besides minutes of meetings, what Other information such as aggregate information do I have to give to a information for awards (or requestor? declinations or postpones) and general discussion about the proposals Subject to the Freedom of themselves would be valid Information Act, you must make information to send to the public. available for public inspection the For example, you may include what records, reports, transcripts, minutes, research areas the proposals were appendices, working papers, drafts, from or possibly what research areas studies, agenda, or other documents need more attention. that were made available to or prepared for or by your committee Appendix I provides an example of until the committee ceases to exist. minutes of proposal review meetings and has areas noted that either must NOTE: If the request mentions or may be withheld from the public. FOIA, you must immediately send it (See also IV-B.1.b., below for closed to the NSF FOIA Officer in OLPA. meeting report requirements.) 2. What about minutes of meetings that were closed to the public? B. REPORTS ON COMMITTEES As stated in Chapter III-B, you will not be required to divulge any 1. What reports are required by information that should be protected FACA and GSA and when are they (trade secrets, confidential due? commercial/financial information, and personal information where disclosure There are three reports required but would clearly constitute an none have a specific due date. A unwarranted invasion of personal description of each and the time of privacy). year they are due is as follow: If you have any of that material in a. Annual Report of the President your minutes, you must sanitize the on Federal Advisory Committees. This minutes or other documents to fiscal year report is required by remove it before sending a copy to FACA and consists of data such as: the requestor. - the number and types of meetings held during the preceding fiscal year; 24 CMG IV B - the number and titles of reports Because of the tight turnaround for prepared by the committee; completing this report, you should keep a running total of your - a detailed accounting of all costs committee's expenses. incurred by the committee; It is especially important that DFO's - the manner in which committee maintain in one place data on all of membership is balanced; the SEP meetings held during the fiscal year. Otherwise, just - the committee's accomplishments assembling the data alone could and justification for keeping it in become a labor-intensive effort. existence; and b. Closed Meeting Report. If your - the members' names and advisory committee holds one or occupations. more meetings that are closed (or partially closed) to the public, the GSA compiles individual reports from advisory committee must issue a the agencies and departments into report at least annually. In one report for the President to send accordance with FACA, the CMO to Congress. sends 8 copies of the report to the Library of Congress for public Additionally, GSA uses this report as inspection and use and keeps 1 copy the basis for the annual review of in the committee file. advisory committees. By reading the justifications and committee This report should set forth a accomplishments that agencies report, summary of the committee's activities GSA determines if the committees and related matters as would be are essential. informative to the public. No information should be released that Congress and the Executive Office of would constitute an unwarranted the President also review this report invasion of personal privacy, that for effectiveness and necessity of would divulge confidential business advisory committees in the information or intellectual property, or that would interfere with NSF's Government. ability to get candid reviews. This report is automated (but not on the NSF mainframe) and the CMO Call NSF's FOIA Officer in OLPA or will send you detailed instructions for the Office of the General Counsel if completing the report and the due you are uncertain whether you can withhold something that you want to date. withhold. Generally, the report is due to the CMO by mid-October and to GSA See Appendix K for an example of a the first week of November. closed meeting report. 25 CMG IV B The CMO sends out a reminder that C. REPORTS BY ADVISORY these reports are due, usually in the COMMITTEES spring. 1. What is the requirement 2. Are there any other reports concerning advisory committee regularly required? reports? Yes, the Annual Report on Each time a committee issues a Composition of NSF Advisory formal report to NSF, 9 copies should Committees is an internal report on be sent to the CMO to be forwarded committee membership. The to the Library of Congress for public Director, NSF, is interested in use and one copy filed in the maintaining balanced membership on committee file. NSF committees and at least annually reviews a statistical report on Reports should have a cover sheet composition. indicating the name of the committee and name and date of the report. The report contains an analyses on age, geographic distribution, gender, 2. What kind of reports do I have to race, disability, affiliation, and field of submit? science. Programs provide the raw data and the CMO prepares the Reports of Advisory Committees are usually Committee of Visitors report. oversight reports or studies addressed The data are collected simultaneously to the Assistant Director. with the Annual Report of the President on Federal Advisory "Reports of meetings" (minutes) are Committees. The report is not considered formal reports of distributed to the Director, Executive committees. Council, Committee on Equal Opportunities in Science and Engineering, Division Directors, DFO's and other interested staff. 26 CMG V A CHAPTER V - RENEWING/AMENDING CHARTERS AND TERMINATING COMMITTEES A. RENEWALS decide if you want to continue it. The CMO also provides instructions 1. When must I renew my committee? on how to renew your committee. A committee automatically expires 2 B. AMENDMENTS years after establishment unless it is renewed. (See C., below.) 1. What do I need to do to amend my consultation form/charter? 2. How do I renew my committee? For minor amendments, you need to The procedure for renewing a send the CMO a copy of your committee is the same as for consultation form with changes establishing one (see Chapter II) with indicated in Remarks. the following exceptions: Examples of minor changes are: name - The renewal consultation changes, changes in the Designated form/charter must be received by Foundation Official, or slight GSA at least 30 calendar days before increases (10% or less) in number of the committee is scheduled to expire members or costs. (generally 2 years from the Filed Date indicated on the consultation The DFO (or Sponsoring Official) form). and CMO sign the revised consultation form and the CMO files - A Notice of Renewal (see it with Congress, the Library of Appendix G) rather than a Notice of Congress, and GSA. The CMO Establishment is published in the provides you with a copy for your Federal Register and there is no time committee files. requirement for the Notice to be published before the committee can For major changes, such as changes in meet. (For establishments, a the objectives and scope of the committee must wait 15 days after committee, you must provide the publishing notice of establishment CMO with a copy of the consultation before it can meet.) form with revised information in the appropriate blocks and identification 3. Does the CMO notify programs of changes indicated in Remarks. when a committee is up for renewal? You and your Assistant Yes, the CMO will send you Director/Office Director, (or notification before your committee Sponsoring Official), and CMO sign expires in sufficient time for you to the revised consultation form. The 27 CMG V B CMO then forwards the form to GSA 2. How are advisory committees for concurrence. terminated? After GSA concurs, the CMO files You may terminate a committee the revised consultation form/charter when you determine that its advice is with Congress, the Library of no longer essential. To initiate a Congress, and GSA. The CMO termination, send the CMO a provides you with a copy for your memorandum via your Assistant committee files. Director or Staff Office Director (for approval) giving a brief explanation of 2. Does an amendment change the why the committee is no longer effective ("file") date of a committee? essential and the date the committee will terminate. The CMO will notify No. The effective date remains the GSA. same as the date the original consultation form/charter was filed 3. After I've terminated my committee what should I do with the files I've with Congress. accumulated? C. EXPIRATIONS AND TERMINATIONS Once the committee terminates, the records should be disposed of in 1. What happens if I don't renew my accord with General Records committee at the appropriate time? Schedule No. 16, Section 8. Essentially, what this means is that Committees are distinguished by the most of the records can be destroyed designation "continuing" and "ad hoc". after 3 years. Identification of the type of committee is in block #10 of the consultation form. A "continuing" committee expires if it is not renewed within 2 years of the filed date (in upper right corner of consultation form). "Ad hoc" committees are designed to expire in less than 2 years, generally by the proposed termination date, located in block #7 on the consultation form. If you decide to continue an ad hoc committee beyond its proposed termination date, you must inform the CMO at least 30 days before that date. 28 CMG APPENDIX A SIGNATURE AUTHORITIES FOR COMMITTEE MANAGEMENT DOCUMENTS Responsibility for signing various committee management documents is indicated below: Signature Authorities Responsibilities Director Has overall authority of all NSF committees as outlined in FACA (delegated - see below); makes determinations to close meetings for other than proposal review and oversight. Assistant Directors and Sign consultation forms/charters for Directors of Staff Offices establishments/renewals/major amendments; approve requests from DFO's for terminations; and sign designation letters where appropriate. Division Directors Sign establishment/renewal/major amendment consultation forms/charters for division/program level committees, in conjunction with Assistant Directors. Sign designation letters for division/program level committees. Committee Chair Certify accuracy of minutes. Committee Management Signs documents required to be Officer published in the Federal Register (meeting notices, Notices of Establishment and Renewal), minor consultation form/charter amendments, and determinations to close advisory committee meetings for proposal review and oversight (Director signs any others). A- 1 APPENDIX B CMG CONSULTATION ON FEDERAL ADVISORY COMMITTEE 0304-GSA-XX FILED DATE: 1. DATE OF CONSULTATION: 2. NAME OF COMMITTEE: 3. COMMITTEE STATUS: A. ESTABLISHMENT B. REESTABLISHMENT C. RENEWAL D. AMENDMENT TO CHARTER - 4. AGENCY TO WHOM COMMITTEE REPORTS: 5. AGENCY PROVIDING COMMITTEE SUPPORT: National Science Foundation National Science Foundation 6. EST. DURATION OF 7. PROPOSED 8. EST. NO. OF 9. FREQUENCY OF COMMITTEE (YRS): - TERMINATION DATE: TOTAL MEETINGS: MEETINGS/YEAR: - - 10. TYPE OF COMMITTEE: A. AD HOC - B. CONTINUING 11. BRIEF STATEMENT COVERING COMMITTEE'S SCOPE AND OBJECTIVES OF ITS ACTIVITY. 12. DESCRIBE THE DUTIES AND RESPONSIBILITIES OF COMMITTEE AND INDICATE IF THE GROUP PERFORMS OTHER THAN ADVISORY FUNCTIONS. 13. WHY IS THE COMMITTEE ESSENTIAL FOR THE CONDUCT OF AGENCY BUSINESS AND IN THE PUBLIC INTEREST? 14. EXPLAIN WHY THE ADVICE OR INFORMATION CANNOT BE OBTAINED FROM OTHER SOURCES. 15. DESCRIBE THE AGENCY'S PLAN TO ATTAIN BALANCED MEMBERSHIP. 16. HAVE THE COMMITTEE AND SUBCOMMITTEE MEMBERS BEEN BRIEFED ON CURRENT ETHICS LAWS AND REGULATIONS? Yes No - Explain - - A- 2 APPENDIX B (Continued) SECTION B-COMMITTEE COST DESCRIPTION CURRENT FY NEXT FY (EST) 17. A. PERSONNEL (1) NON-FEDERAL MEMBERS $ $ PAYMENTS (2) FEDERAL MEMBERS (3) FEDERAL STAFF (4) NON-MEMBER CONSULTANTS B. TRAVEL AND PER DIEM (1) NON-FEDERAL MEMBERS (2) FEDERAL MEMBERS (3) FEDERAL STAFF (4) NON-MEMBER CONSULTANTS C. OTHER (RENTS, USER CHARGES, GRAPHICS, PRINTING, MAILING, ETC.) $ $ D. TOTALS 18. FEDERAL STAFF SUPPORT YEARS: (in tenths) SECTION C - REMARKS/NARRATIVE RESPONSES The Designated Federal Official is the (position title). SECTION D - CERTIFICATION SIGNATURE: DATE: 19. SPONSORING OFFICIAL TITLE: Director, Division of (org title ) NAME: Dr. (name) DATE: 20. COMMITTEE MANAGEMENT OFFICER SIGNATURE: TITLE: Management Analyst NAME: M. Rebecca Winkler SIGNATURE: DATE: 21. OTHER CONCURRING AGENCY OFFICIAL TITLE: Assistant Director for (directorate) NAME: Dr. (name) A- 3 APPENDIX C CMG EXAMPLE OF INFORMATION TO INCLUDE IN CONSULTATION FORM/CHARTER A. SCOPE AND OBJECTIVES. (Item 11) [Advisory Committees] To provide advice, recommendations, and oversight concerning support for research and research-related activities in the area of (discipline). [Advisory Panels] Primarily, to advise on the merit of proposals for research and research-related purposes submitted to NSF for financial support. Additionally, the Panel provides general advice, and policy guidance to the (program name) Program. [Special Emphasis Panels] To advise on the merit of special initiative proposals or applications submitted to NSF for financial support. B. DUTIES AND RESPONSIBILITIES. (Item 12) [Advisory Committees] 1. Advise NSF of the impact of its research support programs and other policies on the scientific community. 2. [If applicable) Perform oversight of program management, overall program balance, and other aspects of program performance. 3. [If applicable] Subcommittees may be formed to perform specific functions for the Committee. Subcommittees will not function independently of the Committee, i.e., they will send all recommendations to the Committee for consideration. [Advisory Panels] 1. Evaluate proposals and provide written recommendations on those proposals as a part of the selection process. 2. Evaluate the state of the scientific field and the effectiveness of the Program in meeting the needs of the field. 3. Review procedures in the Program to assure that those proposals of highest scientific merit and with the greatest probability for future development of science are selected for financial support. A- 4 CMG APPENDIX C (Continued) [Special Emphasis Panels] Review and evaluate proposals, which may include site visits, and provide written recommendations on those proposals as a part of the selection process for award. C. BALANCED MEMBERSHIP. (Item 15) Members are selected for their demonstrated scientific capability so as to represent a reasonable balance of capability in the various subfields of the (discipline). Careful consideration is also given to achieving age and geographical balance and to enhancing representation for women, minority, and disabled scientists, as well as scientists from predominately undergraduate institutions. [Special Emphasis Panels] Membership will be selected on an "as needed" basis in response to specific proposals/applications/sites to be reviewed. About (number) individual panelists will be used each year. Members will be selected for their demonstrated scientific and engineering expertise so as to represent a reasonable balance of capability in the various subfields of the proposals to be reviewed. Consideration will also be given to achieving geographic balance and to enhancing representation for women, minority, younger and disabled scientists. D. OTHER ITEMS USED IN SEP CONSULTATION FORMS. Why is the committee essential? Outside expert advice on the merit and potential of proposals is an essential component of the division's funding decision. Discussion by panelists helps Program Officers to discern possible conflicts-of-interest or other sources of bias, calibrate the reviews, and resolve differences of opinion among the panelists. Why the advice or information cannot be obtained from other sources? While ad hoc mail reviewers can be chosen to give a thorough technical review of a proposal, mail reviewer judgments are normally made about a single proposal viewed in isolation. Panel review in combination with mail review, can, in addition, provide judgments about the comparative merits within a group of proposals or within a single complex, multidisciplinary proposal or a facility. In addition, using existing NSF programmatic panels, where appropriate, would add an inordinately large workload to these panels and the applications to be handled by this panel are different in character from the research proposals handled by the existing programmatic panels. Note: SEP consultation forms have standard language due to their uniform functions, only the scientific discipline and particulars such as number of members, meetings, and costs are different. A - 5 APPENDIX D CMG SAMPLE NOTICE OF ESTABLISHMENT [Follow the instructions that appear in parentheses and select the appropriate wording if a choice is given.] NATIONAL SCIENCE FOUNDATION Committee Management Notice of Establishment The Assistant Director for (directorate) has determined that the establishment of the (name of Committee/Panel) is necessary and in the public interest in connection with the performance of duties imposed upon the Director, National Science Foundation (NSF), by 42 USC 1861 et seq.. This determination follows consultation with the Committee Management Secretariat, General Services Administration. NAME OF COMMITTEE: (Enter official name of Committee or Panel from consultation form/charter.) PURPOSE: (Use wording from the Objectives and Scope section (#11) of the consultation form or charter.) BALANCED MEMBERSHIP PLANS. (Following information provided in item #15 on the consultation form or in charter, describe your plan to attain balanced membership.) RESPONSIBLE NSF OFFICIAL: (Name and telephone number of official responsible for responding to questions from, or for receiving comments provided by, any interested person.) M. Rebecca Winkler Committee Management Officer A - 6 CMG APPENDIX E Timetable for Establishing an Advisory Committee and Announcing First Meeting STEP EST. # DAYS DESCRIPTION 1. Prepare consultation 5 Program informs CMO; prepares documents as described in Guide; obtains form & get directorate signatures. (See Chapter II and Appendices A - - D.) approval 2. CMO reviews & signs 1 CMO receives signed package, reviews for compliance with FACA, NSF policy, signs and has handcarried to GSA. (See Chapter II.) 3. GSA reviews 15 If ok, GSA sends copy to NSF Budget Examiner at OMB. If ok, OMB informs GSA who calls concurrence to CMO. If problem, GSA/OMB phones CMO who mediates to resolve problem. (See Chapter II.) 4. Publish Notice 15 When GSA concurs, CMO informs program, signs the Notice of Establishment and has published of Establishment 4 1/ in the Federal Register. (See Chapter II and Appendix D.) If meeting to be closed/part open, program should inform CMO at least 30 calendar days before meeting. 5. File charter (1) 2/ CMO files consultation form 15 days after Notice is printed. "File date" of consultation form (date consultation form is sent to the Hill) is date committee is established. CMO sends copy of consultation form to program. (See Chapter II.) (Designate members) (15) 2/ Program selects potential members, gets approvals, and sends letter of designation with conflict-of-interest form to members. (See Chapter II.) 6. Publish Meeting 15 Program prepares Notice, gets approvals; CMO signs and has published in the Federal Register. Notice 4 1/ (See Chapter III and Appendix F.) Total Est. 59 Days Required for "Routine" Establishment 1/ The Federal Register requires 4 workdays to process notices. 2/ May file consultation form and select and designate committee members during establishment process. NOTE: If committee establishment is required in less time; contact the CMO immediately. A-7 CMG APPENDIX F NOTICE OF MEETING FORMAT (Follow the instructions that appear in parentheses) NATIONAL SCIENCE FOUNDATION NOTICE OF MEETING The National Science Foundation announces the following meeting: NAME: (Enter consultation form/charter name.) DATE AND TIME: (Enter date(s) of meeting and time meeting starts and adjourns, e.g., July 8 and 9, 1990, 9:00 to 5:00 each day.) PLACE: (Enter room number and street address. If meeting is being held in a hotel, include suite number, if possible, and street address.) TYPE OF MEETING: (Enter Open, Closed, or Part Open. If Part Open, indicate times for open and closed portions.) CONTACT PERSON: (List name, title, address, and phone number of person most knowledgeable about meeting.) PURPOSE OF MEETING: (State purpose of meeting rather than purpose of committee/panel.) AGENDA: (Only need a summary but every category that is to be discussed must be mentioned. May identify the type of proposals to be reviewed, e.g., PYI.) A - 8 APPENDIX G CMG SAMPLE NOTICE OF RENEWAL (Follow the instructions in parentheses and select the appropriate wording if a choice is given.) NATIONAL SCIENCE FOUNDATION Committee Management Notice of Renewal The Assistant Director for (directorate) has determined that the renewal of the (enter name of committee/panel) is necessary and in the public interest in connection with the performance of duties imposed upon the Director, National Science Foundation (NSF), by 42 USC 1861 et seq.. This determination follows consultation with the Committee Management Secretariat, General Services Administration. Authority for this (Committee/Panel) expires (give date of 2 years after file date or, if ad hoc, a shorter time) unless it is renewed. M. Rebecca Winkler Committee Management Officer A-9 APPENDIX H CMG National Science Foundation Washington, D.C. 20550 Conflicts-of-Interest Statement for NSF Advisory Committee/ Review Panel Members Your designation as an advisory committee/review panel member requires that: 1. If you handle proposals or other applications, you must be aware of potential conflict situa- tions. Examples of potentially biasing affiliations or relationships are listed on the back of this form. Should any conflict arise during your term, you must bring the matter to the attention of the person who asked you to serve as an advisory committee/review panel member. That offi- cial will determine how the matter should be handled and will tell you what further steps, if any, to take. 2. If your designation gives you access to information not generally available to the public, you must not use that information for your personal benefit or make it available for the personal benefit of any other individual or organization. This is to be distinguished from the entirely ap- propriate general benefit of learning more about the Foundation, learning from other advisory committee/review panel members, or becoming better acquainted with the state of a given dis- cipline. (TEAR HERE AND RETURN TO NSF) I have read the list of possible conflicts on the back of this form and understand that I must con- tact the appropriate NSF official if a conflict exists or arises during my term of service. I also will not divulge any confidential information I may become aware of during my term. I further un- derstand that I must sign and return this Conflicts Statement to the appropriate official before I may serve. Name (Please Print): Signature: Date: Advisory Committee/Review Panel: Date Received from Member: To Be Retained in Program File NSF Form 1230 (10-88) All Previous Editions are Obsolete A10 CMG APPENDIX H AS AN ADVISORY COMMITTEE OR REVIEW PANEL MEMBER, PLEASE REVIEW THESE EXAMPLES OF POSSIBLE CONFLICTS PERIODICALLY DURING YOUR TENURE. 1. AFFILIATIONS WITH AN APPLICANT INSTITUTION. A conflict may be present if you have/hold: Current employment at the institution as professor, adjunct professor, visiting professor, or similar position. (This includes other campuses of a multi-campus system, but a waiver (NSF Form 1216) may be available.) Current employment or are being considered for employment at the institution. (This includes employment via a consult- ing or advisory arrangement.) Any formal or informal reemployment arrangement with the institution. Current membership on a visiting committee or similar body at the institution. (This is a conflict only for proposals or ap- plications that originate from the department, school, or facility that the visiting committee or similar body advises.) Ownership of the institution's securities or other evidences of debt. (Minor or indirect holdings are not considered con- flicts.) Any office, governing board membership, or relevant committee chairpersonship in the institution. (Ordinary membership in a professional society or association is not considered an office.) Current enrollment as a student. (Only conflict for proposals or applications that originate from the department or school in which one is a student.) Received and retained an honorarium or award from the institution within the last 12 months. 2. RELATIONSHIPS WITH AN INVESTIGATOR, PROJECT DIRECTOR, OR OTHER PERSON WHO HAS A PER- SONAL INTEREST IN THE PROPOSAL OR OTHER APPLICATION. Known family or marriage relationship. (Conflict only if the relationship is with a principal investigator or project director.) Business or professional partnership. Employment at the same institution within the last 12 months. Past or present association as thesis advisor or thesis student. Collaboration on a project or on a book, article, report, or paper within the last 48 months. 3. OTHER AFFILIATIONS OR RELATIONSHIPS. Interests of the following persons are to be treated as if they were yours: Any affiliation or relationship of your spouse, of your minor child, of a relative living in your immediate household or of anyone who is legally your partner that you are aware of and that would be covered by Items 1 or 2 above (except for receipt by your spouse or relative of an honorarium or award). Any other relationship, such as close personal friendship, that you think might tend to affect your judgments or be seen as doing so by a reasonable person familiar with the relationship. (Reverse of NSF Form 1230) A-11 APPENDIX I CMG Example of Minutes of Proposal Review Meeting National Science Foundation Advisory Panel for Widgets Minutes (1) The Advisory Panel for Widgets met in closed session on May 19 and 20, 1990, from 8:00 to 5:00 each day in Room 1242, National Science Foundation, 1800 G Street, N.W., Washington, D.C. The meeting was devoted to the review and evaluation of research proposals. (2) Panel members** present during the meeting were: Dr. George Hill Northwestern University Dr. Patricia Brook University of Texas @ Austin Dr. Cliff J. Cleggett Pennsylvania State University Dr. Lucy A. Parlett Williams College Dr. Mary C. Fose University of Maryland @ College Park (3) Staff members present during the meeting were: Dr. Harold West, Program Director, Widgets Dr. April Posey, Assistant Program Director Dr. Robert Fall, Associate Program Director (4) The meeting began with a reminder to panel members about possible conflicts of interests regarding the proposals to be reviewed. Members were cautioned about the confidential information in the files and in the panel's discussions and conclusions. (5) The panel reviewed and evaluated 229 research proposals and projects as part of the selection process for awards in the four program areas of the Widget Sciences Research Section. The proposals fell about equally among the four programmatic areas of the Section -- Physical Widgets, Chemical Widgets, Economics and Geography. Of the 229 proposals reviewed, 120 were recommended for award subject to availability of funds and other considerations of the Program Officer, 60 were recommended for award if funds become available, and 49 were recommended for declination. Panel discussion on proposals is summarized (panel summary**) and incorporated herein by reference. This panel summary is filed in the pertinent proposal jacket and a copy is sent to the proposer. When NSF makes an award, most information about the proposal becomes available to the public, but the recommendation of the panel is not disclosed to the public because it is a predecisional document in the deliberative process. A CMG APPENDIX I (Continued) Example of Minutes of Proposal Review Meeting (6) Members having a conflict and how the conflict was resolved are listed below (or is attached). Member's Name ** Proposal No. How Resolved Cliff Cleggett WP 89-05844 did not participate in the discussion Lucy Parlett WP 89-94723 left the room Mary Fose WP 89-23455 DFO determined that the conflict was not so substantial as to affect her judgment George Hill WP 89-35984 left the room (7) These minutes are an accurate summary of the matters discussed and conclusions reached at this meeting. Certified by: (signature) Harold West, Chairman Advisory Panel for Widgets Date: ** Information may be withheld if it enables someone to associate a review with an individual panel member. Basic Information Required in Minutes by FACA, Committee Management Regulations, and/or NSF policy: (1) time, date, place of meeting (2) list of members present (3) Agency employees present (4) notation that Program Officer requested identification of potential conflicts * (5) accurate description of each matter discussed and resolution (6) documentation of conflict situations * (7) certification by chairperson * Required by NSF policy. APPENDIX J CMG TYPES OF GROUPS FOR GETTING ADVICE If you need: Use: Your Responsibilities are: 1. advice 1/ given a chartered directly to NSF advisory committee that is: a. an existing NSF If you use an existing advisory committee or committee, be sure you adhere to another agency's guidelines in CM Guide, e.g., announce committee. meetings, keep minutes, monitor conflict-of-interest problems, and - OR - committee annually reports activities to GSA. b. committee you If you establish your own committee, establish solely for you must follow all guidelines in the this purpose. CM Guide, e.g., a. Charter under FACA; b. Announce meetings in Federal Register, keep minutes, have balanced membership; C. Report activities annually via CMO to GSA; and d. File reports with Congress via CMO. 2. advice 1/ through a dependent a. Ensure parent committee's charter another (parent) (unchartered) authorizes it to establish subcommittees; committee, consisting of subcommittee of members, drawn in an established b. Ensure parent committee considers whole or in part from (chartered) subcommittee's recommendations parent committee advisory before advice is given to NSF. committee c. Ensure subcommittee adheres to FACA requirements, see b-d above; CMG APPENDIX J (Continued) If you need: Use: Your Responsibilities are: 3. advice 1/ given independent a. Ensure parent committee's charter directly to NSF from a (chartered) authorizes it to establish subcommittees; subcommittee consisting subcommittee of members drawn in formally b. Ensure subcommittee adheres to whole or in part from established under FACA requirements, see a-d above.4. parent committee an existing advice from a group consisting of advisory Federal members only committee 4. advice from a group an advisory group a. Adhere to conflict-of-interest consisting of Federal that is not subject regulations; members only to FACA b. Adhere to other NSF policy, especially FOIA. 5. to share information a public hearing, a. Ensure that hearing is widely about NSF programs not subject to announced to the public; and/or obtain views FACA from the public, not b. Ensure that no advice be received, specific advice only opinions; C. Ensure public participation is open to all. "These groups consist of at least one non-Federal member. APPENDIX K CMG Example of a Closed Meeting Report (NSF Letterhead) FY XXXX REPORT OF CLOSED MEETINGS OF THE ADVISORY PANEL ON WIDGETS The Advisory Panel on Widgets met four times during FY 1990. The purpose of the panel is to review, evaluate, and discuss proposals submitted to the Widgets Program for financial support. All sessions of the panel were closed to the public because the panel was engaged in the review of proposals that included information of a proprietary or confidential nature, including technical information; financial data, such as salaries; and personal information concerning individuals associated with the proposals. These matters were within exemptions 4 and 6 of the Government in the Sunshine Act. Each meeting began with reading of the NSF conflict-of-interest statement reminding panel members about possible conflicts of interests regarding the proposals to be reviewed. In accordance with Agency policy, members were cautioned about the confidential information in the files and in the panel's discussions and conclusions. Throughout the fiscal year, the panel reviewed a total of 1,297 research proposals and projects as part of the selection process for awards in the four program areas of the Widget Sciences Research Section. The proposals fell about equally among the four programmatic areas of the Section - Physical Widgets, Chemical Widgets, Economics, and Geography. Of the 1,297 proposals reviewed, 390 were recommended for award subject to availability of funds and other considerations of the Program Officer, 667 were recommended for award if funds become available, and 240 were recommended for declination. A list of proposal numbers showing the panel's action on each was prepared. To protect the personal privacy of the proposers, this list is not available to the public. Lists of final award recipients are available when a final NSF decision is reached. [NOTE: If the list of final award recipients is available, you may wish to attach it to your report.] This report was prepared in accord with Section 10(d) of the Federal Advisory Committee Act. (signature) Harold West, Chairman Advisory Panel for Widgets Date: Attachment CMG APPENDIX K (Continued) EXAMPLE OF CLOSED MEETING REPORT FY 1990 REPORT OF CLOSED MEETINGS OF THE ADVISORY PANEL ON WIDGETS No. Proposals Meeting Date No. Members Present Reviewed 10/3-4/89 6 463 2/6-7/90 8 521 6/28-29/90 5 245 9/15-16-90 6 68 TOTAL PROPOSALS REVIEWED 1,297 APPENDIX L CMG National Science Foundation MULTI-CAMPUS SYSTEM WAIVER An NSF employee¹) or advisory committee/review panel member²) who has a continuing employment, retirement, or reemployment relationship with a multi-campus institution may be involved with proposals and other matters submitted to NSF from any campus of the institution only if a waiver is approved before his or her involvement, but he or she can not be involved for a campus where he or she has some direct affiliation. CAUTION: A waiver cannot be granted for a person who participates in or advises on decision making that affects the system instead of affecting only the single campus. For example, a Department Chairperson advising on multi-campus budgeting or planning and a member of a multi-campus advisory panel would not be eligible for a waiver. is employed at , (NSF employee or committee /panel member) (institution) and works in a position that serves only that campus. (campus) The NSF employee or committee/review panel member has been appointed/designated to serve the NSF from to . In this position, he/she may be asked, as a Federal employee or committee/review panel member, to handle proposals or other matters from other campuses. Pursuant to 18 USC 208(b)(1), and the authority delegated to me by the Director, I have deter- mined that his/her interests in the other parts of the institution are not so substantial as to be deemed likely to affect the integrity of the services that the Foundation may expect from him/her. Therefore, he/she is disqualified as to matters involving only the campus cited above and may participate in matters involving other parts of the institution. (Signature and typed name of appropriate Assistant Director/Staff Office (Date) Director or Division Director) 1) NSF employee includes Visiting Scientist, IPA, and Special Government Employee (consult- ant/expert) 2) Advisory Committee/Review Panel refers to members of advisory committees, advisory panels, review panels, and oversight groups. White - Originating Office Pink - OGC All Previous Editions are Obsolete NSF Form 1216 (7/90) A-18 CMG SUBJECT INDEX Subject Page Number Ad hoc committee, definition 28 Administrative time, definition 14 Advisory committee 1 definition, requirements types of groups for getting advice A-14 Agenda 5 approving for meeting notice 16 Amendments, described and process 27 Assistant Director or Staff Office Director, responsibility 5 Budget Examiner, role in establishing a committee 7 Central repository for committee management documents, responsiblity for maintaining 6 Chairperson how to determine costs for 15 responsibility 36 role at meeting 22 selection of 6 Closed meeting changing from an open meeting 18 criteria, examples 17 determination timing 18 notice of meeting 18 reporting on 25 requirements 3 timing of determination 8 when to decide 16 Closed session emergency, at an open meeting 19 rescheduling 19 Committee activities and cost, reporting on 25 Committee Management Officer (CMO), responsibilities 5 Committee Management Reports description 24 responsibility 5 Committee Management Secretariat, GSA, responsibility 6 Committee of Visitors, description of when to close to the public 17 Committee's operation, responsibility for 5 Committee's recommendations, assuring prompt review of 5 Conflict, situations documented, an example 21 Conflicts requirements 11 resolution of 20 iii CMG SUBJECT INDEX Subject Page Number Conflicts of interest 20 reading requirements at meetings responsibility for guarding against Congress information sent to 4, 7, 25-28 25 role in Federal advisory committees 13 Consultant, compensation Consultation form 7 description A-2 example A-4 information to include 12 preparation of 28 Continuing committee, definition Costs 12 determining committee costs documentation in consultation form 15 13 other, travel and per diem 12 personnel Designated Foundation Official (DFO) 27 amending charter 22 developing operating procedures 17 requesting closed meeting 21 resolving conflicts 5 responsibility 20 role 20 role at meeting 25 role in reporting committee data 9 SEP management Designation 10 of members from same institution 10 terms of 10 Designation letter, information to include Determinations for closing meetings 6 other than proposal review and oversight 6 proposal review and oversight 3 Disclosure Documents available at the meeting 23 public dissemination of 7 Duration (of committee), maximum Effective date 28 change with amendment 7 of committee establishment iv CMG SUBJECT INDEX Subject Page Number Establishing a committee concurrence 7 documents required 7 expeditious establishment 8 GSA's role 8, 12 notice of establishment, sample A-6 notification of establishment 8 7 process signature responsibility 8 timing 8, A-7 Establishment, notice of 7 Ethics laws and regulations, instruction 5 Expiration, how to identify expiration date 28 Federal Advisory Committee Act definition 1 GSA regulations, NSF policy, overall compliance with 5 not subject to 1 subject to 2 Federal members, determining compensation 12 Federal Register 3 Federal staff determining cost 12 fringe benefits 13 File date, definition 7 FOIA requests, what to do 24 GSA role in amendments 28 role in establishing a committtee 7 role in reviewing/reporting on committees 25 role in terminations 28 Hotel accommodations, reimbursement for 11 Informal discussion, requirements under FACA 18 Information to the public, responsibility for providing 5 IPA, role 20 Meeting access to secure location 19 accessibility 19 as working lunch/dinner 22 attendance, informing of changes 18 calling, or approving the call of 5 cancelled or postponed 18 change in agenda after start of meeting 19 close for other than proposal review or oversight 17 closed, procedure to 17 closed, report 25 V CMG SUBJECT INDEX Page Number Subject Meeting (continued) 22 disruption, what to do 16 exemptions to close 20 Federal employee attendance 19 location, at NSF 18 notice of closed meeting 19, 20 notice, distribution A-8 notice, format sample 18 notice, number of copies required 16 open to the public 17 part open, definition 16 planning 16 processing required documentation 5 responsibility for adjourning 16 timing of first meeting 19 when to schedule Members 9 designating 12 determining compensation 11, 12 Federal 11 fee 10 getting "on board" 10 number of 25 reporting on 9 selecting 9 Membership, balanced Minutes 23 and distribution of other material 21 content 21 disclosing to the public 23 distribution of 22, A-12 for closed meetings 20 how recorded 24 of closed meetings 22 preparation and signature 20 required whether open or closed meeting 5 responsibility for 22 when due 20 who records Multi-Campus System Waiver (also see NSF Form 1216, below), requirement 11 Notice 5 meeting responsibility for publishing 16 meeting, data to include 18 meeting, late 27 of renewal vi CMG SUBJECT INDEX Subject Page Number NSF Form 1216, "Multi-Campus System Waiver" example A-18 requirement for 11 NSF Form 1230, "Conflicts-of-Interest Statement for NSF Advisory Committee/Proposal Review Panel Members" example A-10 requirements 11 Office of the General Counsel (OGC), responsibility 6 OMB Budget Examiner, responsibility 6 Open meeting rescheduling 20 when to decide 16 Openness, responsibility for ensuring 5 Overview, requirements and Guide references 1 Panel summaries not same as minutes 23 send to proposers 23 Public dissemination, documents to be made available 24 Public participation, at meetings 22 Records 3 availability to the public 9 definition 9 disposition of terminated/expired committees 28 how long to keep 9 responsibility for keeping committee records 8 Renewing a committee notice, format sample A-9 27 process timing 27 Reports by Advisory Committees requirement for dissemination 26 Reports of meetings VS. minutes 26 Reports on committees Annual Composition of NSF Advisory Committees 26 Annual Report of the President on Federal Advisory Committees 24 closed meeting report, example A-16, 25 description 24 SEP (Special Emphasis Panel) 4 establishing 7 maintaining records for 9 notice of meeting 16 terms of membership 10 Signature Authorities A-1, 8 vii CMG SUBJECT INDEX Page Number Subject Site visit reports 23 send to proposers 4 Special Emphasis Panel 14 Staff support, example in deteriming 13 Staff Support Years, determining amount 28 Termination, process 12 Travel, making arrangements for 13 Travel and Per Diem, determining costs 20 Visiting Scientists, role Withholding information, who to contact for guidance 25 viii NW POLICY States 29 the and and OF 0 35 and the THES the and HOW