OFFICE OF THE PRESIDENT
300 Lakeside Drive
Oakland, California 94612-3550
December 15, 1994

CHANCELLORS
SENIOR VICE PRESIDENT--BUSINESS AND FINANCE
VICE PRESIDENT--AGRICULTURE AND NATURAL RESOURCES

Dear Colleagues:

The enclosed University of California Policy on the Requirement to Submit Proposals and to Receive Awards for Grants and
Contracts through the University is effective immediately. This Policy does not apply directly to the Department of Energy
National Laboratories which already have similar policies in place, consistent with Federal requirements.

This Policy was developed at the request of the Council on Research. The requirement that all proposals for grants and contracts must be submitted through the University is necessary to ensure compliance with relevant University policies and procedures governing the conduct of research and other extramural activities. This Policy does not apply to permissible consulting activities which do not utilize University resources or facilities.

Thank you for your advice and cooperation in developing this Policy.

Sincerely,

J.W. Peltason

Enclosure

cc:
Laboratory Directors
Members, President's Cabinet
Vice Provost King
Special Assistant Gardner
Members, Council on Research
Principal Officers of The Regents

University of California
Office of the President
December 15, 1994

POLICY ON THE REQUIREMENT TO SUBMIT PROPOSALS AND TO RECEIVE AWARDS FOR GRANTS AND
CONTRACTS THROUGH THE UNIVERSITY

It is the policy of the University of California that employees who receive any part of their salary through the University, or whose activities use any University resources or facilities, must submit their proposals for extramural support through the appropriate local contracts and grants office. Awards must be made to The Regents of the University of California.

This requirement is necessary to insure that all research and other extramurally funded projects conducted by University
employees, or with the use of University resources or facilities, are approved by the appropriate University contract and grant
office and comply with relevant University policies and guidelines, including but not limited to those governing:

--integrity in research;

--appropriateness of the activity to the University;

--protection of human and animal subjects and the environment;

--use of University facilities;

--adherence to personnel policies;

--compensation plans;

--intellectual property;

--conflicts of interest;

--recovery of direct and indirect costs;

--liability insurance and indemnification; and

--medical malpractice coverage.

In the case of projects to be conducted by the University in collaboration with other organizations, the University can be either the prime contractor or a subcontractor. In all cases, all resources required for the conduct of the portion of the work which will be directed by University employees must be included in the award to the University.

Exceptions to the requirement to submit proposals and awards through the University may be granted by Chancellors in unusual
circumstances on a case by case basis, after consideration of the policy areas cited above, when it is in the best interest of the
University. When an exception is granted, there must be a clear distinction between service to the University and service to the
external party; relevant personnel policies shall be followed; the name of the University shall not be used by the external party; and in no case shall the University assume liability for a third party's action without the approval of The Regents as required by the Bylaws and Standing Orders of The Regents.