. "Appendix A: Selected Federal Programs with Nonfederal Funding Participation." Strategies to Leverage Research Funding: Guiding DOD's Peer Reviewed Medical Research Programs. Washington, DC: The National Academies Press, 2004.
GICUR fosters cooperative, long-term basic research by universities with industry and/or government laboratories in research areas vital to the advancement of technologies important to DOD. Industry and government share responsibility for research area selection and overall direction as well as funding. For example, in cooperation with the Microelectronics Advanced Research Corporation (MARCO), the Semiconductor Electronics Microelectronics project funds four universities (University of California [UC] at Berkeley, Georgia Institute of Technology, Massachusetts Institute of Technology, and Carnegie Mellon) that in turn lead coordinated research efforts on particular topics by consortias of institutions. Under MARCO, the electronics industry provides at least three dollars for each dollar provided by DOD. Federal funding has averaged approximately $7 million a year since FY 1998.
TIAs, authorized by 10 U.S.C. 2371, enable DOD to enter into research agreements other than grants and cooperative agreements. They permit the government to exercise greater flexibility and judgment to achieve program goals because they are not subject to many of the regulatory requirements (most notably, the Baye-Dole Act patent provision) of standard federal grants and cooperative agreements that deter some companies from partnering with the government. Cost sharing of at least half of the project costs is required, however. According to DODs Grant and Agreement Regulations (section 37.215), “The purpose of cost share is to ensure that the recipient incurs real risk that gives it a vested interest in theproject’s success.” TIAs also require “a greater level of involvement of the government program officials in the execution of the research than the usual oversight of a research grant or procurement contract.”
Twenty-eight TIAs and cooperative agreements were entered into in FY 2001, with industry paying for 46 percent of the total costs of $114 million (www.acq.osd.mil/dpap/Docs/FY01RPT.doc). For example, in 2000 DARPA entered into a TIA with Motorola, Inc. for an 18-month effort to develop a multichip module sample preparation system for genetic analysis. DOD wanted access to Motorola’s technology, but Motorola does not accept standard government research contracts. Use of the TIA permitted the company to use its existing accounting systems, which were not compliant with FAR, and to negotiate other rights important to Motorola, including alternate disputes resolution procedures, intellectual property rights less stringent than the Bayh-Dole provision, and foreign access to technology. In return, Motorola paid for $1.5 million of the $4.9 million cost of the project.