HOW TO PREPARE AND MANAGE EU PROPOSALS AND CONTRACTS

1. HOW TO PREPARE AND MANAGE EU PROPOSALS AND CONTRACTS Yves Motteu

2. Preparing a proposal • Call for proposals with strict deadlines • Prepare in advance by • Reading the work programmes (subject areas, instruments, evaluation criteria) • Forming a partnership and defining the basic principles of the relationship • Creating an outline of your proposal

3. Who can participate • Participants in FP6 have to be legal entities • In principle a legal entity from any country in the world can participate. But different rules for participation and funding apply to different groups of countries (details are given in work programmes and calls for proposals) • For EU Member states and Associated Candidate Countries, no restriction for participation and funding

4. The instruments • Instruments are the means of Commission intervention • FP6 introduces 3 new instruments (integrated projects, network of excellences and “article 169”) The “old” instruments have been adapted (specific targeted research projects, coordination actions, specific support actions)

5. Submission of a proposal • Structure: 2 parts • Part A: administrative forms • Part B: description of the project and the consortium • Methods of submission • Prepare on-line, submit on-line • Prepare off-line, submit on-line • Prepare off-line, submit on CD or disk • Prepare off-line, submit on paper

6. Financing Grant forintegration Grant to the budget Flat-rate Networks of excellence  Integrated Projects  Specific targeted research projects  Specific research projects for SMEs  Integrated initiatives relating to infrastructure  Actions to promote human resources & mobility   Coordination actions  Specific support actions  

7. Financing Cost Reporting Models • FC: actual direct and indirect costs (not available for Coordination Actions and Specific Support Actions) • NewFCF (variant of FC): actual direct costs + flat rate for indirect costs (20% of total actual direct costs, except costs of subcontracts - all instruments) • AC: actual additional direct costs + flat rate for indirect costs (20% of total actual additional direct costs, except costs of subcontracts - all instruments)

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

9. Financing: type of activity

10. Tips for success Check if: • Your proposal addresses the call for proposals • Your proposal is complete • Your proposal addresses all questions (see guide for proposers) • The objectives are clear • It is clear how the project will be managed • The partnership is right (clear roles, responsibilities, complementarity,…)

11. Help in proposal preparation • Guide for proposers: practical information and advice on how to prepare and submit proposals • National Contact points established in all EU Member States and in the countries associated to FP6 • Commission info-desks for the different thematic priorities and activities of FP6

12. Evaluation of proposals • Eligibility checks • Receipt of proposal before the deadline • Minimum number of participants • Completeness of the proposal • Evaluation with assistance of independent experts • Evaluation criteria The set of criteria varies between instruments Are described in the work programmes • Ranking versus budget

13. Example of criteria Integrated projects • Relevance to the objectives of the programme • Potential impact • S&T excellence • Quality of the consortium • Quality of the management • Mobilisation of resources

14. Contract negotiations • Coordinators receive a letter with • The Evaluation Summary Report • Contract preparation forms (CPF) to be completed by all participants • Separate set of CPF for each instrument • Description of the work to be submitted with the CPF Will serve as the basis for Annex I to the contract • In some cases, when the collective responsibility is not applied or does not sufficiently cover the advance payment, some participants will have to provide annual financial statements

15. Consortium agreement • Regulates internal organisation and management of consortium • NewCompulsory unless otherwise mentioned in the call for proposal • Between contractors - NOT signed nor approved by the Commission • Non binding guidelines provided by the Commission

16. identified in Annex I Contractors Participant = contractor • Every legal entity contributing to a project must have a contractual link with the Community • Same rights and obligations Exception to rule: subject to very restrictive rules • Third parties • Subcontractors (but these contributors are NOT participants)

17. Role of the coordinator Additional responsibilities: • Ensures that the other participants complete on time the formalities to accede to the contract • Is the intermediary for communication between the contractors and the Commission (reporting) • Receives all payments made by the Commission to the consortium • Keeps accounts to determine what portion of the Community has been paid to each contractor

18. Subcontracting • Contractors shall ensure that the work to be performed can be carried out by them. • Exception: where it is necessary to subcontract certain elements of the work, this should be clearly identified in Annex I • Management activities should not be subcontracted • Minor services may be subcontracted: • which do not represent core elements of the project • which cannot be directly assumed by contractors • where necessary for the implementation of the project

19. Contract: Content • Core contract (standard with specifics of project - negotiated) • timing, financing, reporting details of this project • any special clauses specific to this project • Annex I(technical tasks - the “project” - negotiated) • technical details of this project – specific to it • including budget and breakdown, subcontracting, third parties • Annex II General Conditions (standard) (applicable to every instrument) • Annex III Instrument specific provisions (standard - specific to instrument – if applicable)

20. Contract Structure • Annex IV - Form A Consent of contractors identified in the core-contract (article 1.2) to accede to the contract. To be signed by the contractor concerned and by the coordinator • Annex V - Form B Accession of new legal entities to the contract. To be signed by the new contractor concerned and by the coordinator • Annex VI - Form C Financial statement per activity. Specific to each instrument and/or type of action. To be filled periodically by each contractor

21. Signature and entry into force • Contractual link of all contractors with the Commission • New Contract enters into force upon signature of coordinator and Commission • All the contractors are identified in the core contract • Coordinator must ensure other contractors sign within delays • Distribution of advance - Several options available: minimum number of participants/all participants • Evolution of consortium possible: • where one or more does not sign the Form A [article 2] • in case of enlargement (new contractors) [article 3] • Project begins in the date established in the contract (this can be before the contract enters into force but usually later)

22. Managing a project • Active monitoring is essential • Adequate management structures to deal with an increased level of autonomy and flexibility (dedicated management staff from the consortium) • Recording and identifying costs in relation to the project • Protecting, publishing and using the knowledge generated

23. Reporting and deliverables • Periodic reports and final report to be submitted within 45 days following the end of each period (12 months for IP and NoE) • Types of report: • Activity report • Management report • Distribution of the Community contribution between contractors • Supplementary reports required by Annex to the Contract • Audit certificates if required by the contract • The Commission undertakes to evaluate reports within 45 days of receipt. The absence of a response within this delay does not imply approval by the Commission

24. Payment modalities • Payments made to the coordinator on behalf of the consortium • High degree of flexibility in the management of the EC financial contribution • System of periodic advance payments (pre-financing) covering a reporting period plus the first six months of the following reporting period (normally 80% of the estimated EC contribution) • Further payments based on the approval of the periodic reports

25. Pre-Financing - payment • Distribution of pre-financing to coordinator by Commission: within 45 days of: date of entry into force of contract or date of signature of minimum number of participants or date of signature of last contractor (established by contract) • Distribution of pre-financing to other contractors by coordinator: not before minimum number of contractors have acceded to the contract if 45 days within date of entry into force of contract or receipt of any bank guarantees or other financial security (if special clause)

26. Payments and reporting schedule for an IP(example of a 4 year contract) Activity report Reported costs Activity report Detailed work plan Reported costs Adjusted advance Activity report Detailed work plan Reported costs Adjusted advance Activity report Detailed work plan Reported costs Adjusted advance Detailed work plan Initial advance 0 6 12 18 24 30 36 42 48 Months

27. Eligible costs • New : • 1 - No more cost categories • 2 - Costs must be : • actual, economic and necessary for the project • incurred during the duration of the project (exception: costs of final reports) • recorded in the accounts of the contractor (or third parties) • and must exclude indirect taxes, duties, interests, costs reimbursed in respect of another Community project, and not give rise to profit 3 - Total costs identified in Annex I

28. Audits • Audit certificates by external auditor • In some instruments for each partner and each year (IP/NoE) • For public bodies – competent public auditor • Audits by the Commission, Court of Auditors or external reviewers

29. LIABILITY New: Collective responsibility of contractors Mechanism by which a contractor may be held liable, technically and/or financially, fully or partially, for the action of another contractor Consequence of FP6 principle of “autonomy of the consortium”: if the money is granted to the consortium, which decides on its allocation,then the consortium as a whole is to be held liable (public bodies are excluded from the financial liability)

30. For more information • General information on FP6 • http://europa.eu.int/comm/research/fp6/index_en.htm • Legal framework within FP6 • Model contract : http://europa.eu.int/comm/research/fp6/working-groups/ model-contract/index_en.html • Helpdesk • http://www.ipr-helpdesk.org • RTD-A03-Question-juridiques@cec.eu.int