University of New Mexico Health Sciences Center
Q: How do I start preparing a proposal?
A successful proposal starts with a thorough understanding of the needs, interests, and requirements of the sponsor. Be sure to use the current guidelines and forms. See Links to Funding Agencies. If you have any questions after reading the sponsor's guidelines, our Preaward staff will be happy to assist you.
Q: What is the difference between a grant and a contract?
A grant provides for the transfer of the sponsor's money (and/or property or services) to a recipient in order to accomplish a public purpose. The idea for the work originates with the recipient or performer and no substantial involvement is anticipated between the sponsor and the recipient. The performer defines the details and retains scientific freedom. A contract is a procurement mechanism for the purpose of acquiring services and/or property for the direct benefit or use of the sponsor. Typically, the idea for a contract originates with the sponsor. A cooperative agreement is somewhere along a spectrum between a grant and a contract. The idea may originate with the recipient; however, substantial involvement with the sponsor is anticipated.
Q. What is the difference between a grant and a gift?
A gift, donation, or charitable contribution requires nothing in return. It does not require a Financial Report or return of unspent funds. Gifts to not involve cost reimbursement. Gifts never come from Federal or State funds. The source a gift often requests a Charitable Donation Form for their tax accounting purposes. The UNM Foundation (http://foundation.unm.cc/index.php?option=com_content&task=section&id=15&Itemid=37), a 501(c)3 non profit corporation owned by the Regents of the University of New Mexico, manages gifts. Additional information can be found here. The Foundation's Fund Establishment Form can be found here.
Q: What is the difference between Cost Reimbursement, Fixed Price, and Fee for Service?
There are a number of ways that sponsors may choose to fund projects - a number of different ways that a sponsor may be billed. Cost Reimbursement provides for reimbursement of actual costs incurred, plus some agreed upon reimbursement of the indirect costs of facilities and administration (F&A). This method is commonly used in situations such as basic research where the cost of project is difficult to predict. Under a Cost Reimbursement agreement, the recipient has little incentive to minimize costs, so the sponsor typically imposes tight controls over expenses, such as detailed financial reporting. When costs can be estimated reasonably accurately, Fixed Price may be a more convenient method. Under a Fixed Price agreement, the sponsor pays a specified price for work that has been specified in the agreement. Under a Fixed Price contract, the sponsor make regular payments on a schedule. A Fee for Service agreement provides for a specified payment(s) for a specified deliverable(s) and is useful when a particular service is provided multiple times such as in clinical trials or other clinical services. Fee for Service and Fixed Price projects may be easier to administer because the sponsor does not typically require detailed financial reporting, but care must be taken to negotiate a price that covers the full cost of providing the work, including F&A costs.
Q: What else do I need to know about negotiating with a sponsor?
PIs, chairpersons, deans, directors, and other faculty or staff are not authorized to enter into agreements or contracts, except as designated in UNM Business Policies and Procedures Manual (UNM BPPM), Policy 2010 - Contract Signature Authority and Review. Since a proposal is an offer to perform research, services, etc., in exchange for institutional review and approval, care should be taken when dealing with potential sponsors so they do not mistake preliminary discussions for institutional commitments. In preliminary proposals or discussions with a prospective sponsor regarding the budget, remember to consider F&A costs and the costs of employee fringe benefits. These are real costs that need to be included in the budget.
Q: Who is eligible to serve as a Principal Investigator on a proposal?
In the School of Medicine, only faculty members can serve as PIs on sponsored projects. Any exceptions need to be approved by SOM Office of Research. Outside of the School of Medicine, anyone may serve as PI on a sponsored project.
Q: What are the PI's responsibilities?
The principal investigator is responsible for adhering to the sponsor's terms and conditions and UNM policies and procedures, completing the technical requirements of the project, and handling the day-to-day administration of the project as proposed to the sponsor.
For further information, visit our detailed list of PI Responsibilities.
Q: Can there be more than one Principal Investigator on a proposal?
A single member of the faculty is designated as the lead PI. Some agencies do not recognize more than one Principal Investigator, but Co-PIs are permitted by many funding agencies. Recently, the NIH has piloted a multi-PI program for collaborations among different institutions. A single person, however, assumes the responsibilities of the PI, even when some of those responsibilities are delegated to a Co-PI.