Mr. Gerald Smith

1
Welcome to theOffice of Naval Research

• Mr. Gerald Smith
• Regional Director
• University Business Affairs
• 18 April 2005

2
ONR Update - Overview

• Brief History of ONR
• Areas of Discovery Invention
• The Navy Marine Corp of the 21st Century
• The Business Side of Science
• Pre-award
• Post Award
• ONR Grants.gov
• Automation on the Horizon

3
Naval ResearchAn Enduring Mission
Naval Research Laboratory (Appropriations Act,
1916)Conduct exploratory and research
worknecessary for the benefit of Government
service, including the construction, equipment,
and operation of a laboratory.
Office of Naval Research (Public Law 588,
1946) plan, foster, and encourage scientific
research in recognition of its paramount
importance as related to the maintenance of
future naval power, and the preservation
of national security.
Transitioning ST (Defense Authorization Act,
2001)manage the Navys basic, applied, and
advanced research to foster transition from
science and technology to higher levels of
research, development, test, and evaluation.
4
Orientation Overview
Here we are
115B
Secretary of the Navy
Assistant Secretary of the Navy Research,
Development and Acquisition
Acquisition
Research and Development
29B
14.1B
VCNO ACMC
Basic Research Applied Research Advanced Tech.
Development Test Evaluation DEM/Val EMD Op.
Systems Development
Aircraft carriers
11 Program Executive Officers
Office of Naval Research
Combat ships
1.71B
2 Direct Reporting Program managers
Submarines
Naval Research Lab
Aircraft
Warfare Centers
6 Systems Commands
Weapons systems
54 Major Program managers
PEOs, Systems Commands, Warfare Centers
12.4B
Ammunition
467 Program managers
Combat boots
Source FY04 Blue Book, FY04 R-1
5
Integrated, Use-Inspired Research

• Basic Research (6.1)
• Applied Research (6.2)
• Advanced Technology Development (6.3)
• Development (6.4-6.6)

Science Technology
Research, Development, Test, Evaluation
Advanced Technology DevelopmentREMUS AUV
Basic ResearchShoaling Waves Experiment
Applied ResearchWave Modeling and Prediction
Peer review of portfolios, not proposals
6
Naval ST Investment by Performer
237M
81M
173M
58M
568M
109M
170M
267M
316M
FY03 M as reported in the FY04 National Science
Foundation Survey of Federal Funds for RDTE
7
ST Investment Categories POM 06

• Innovative Naval Prototypes (INPs)
• Affordable Weapon
• Half-Length Torpedo
• Electromagnetic Gun
• Hy Fly-Hypersonic Strike
• Free Electron Lasers
• UCAV-N
• X-Craft
• UESA

• Discovery Invention (DI)
• NRL Base Program
• Science shortfalls in topics with Naval interest
• Nurturing science opportunity
• High impacts/surprises
• Health of Academic pipeline ideas/workforce
• National Naval Responsibilities
• Ocean Acoustics
• Undersea Weaponry
• Naval Engineering

• Virtual Technologies Environments
• Persistent Littoral Undersea surveillance
• SEA Basing Enablers
• Tactical Use of Space
• 36 MW Superconducting Motor
• Advanced Multifunction RF System

Future Naval Capabilities (FNCs)
Quick Reaction and Other

• Time Critical Strike (TCS)
• Organic Mine Countermeasures (OMCM)
• Knowledge Superiority Assurance (KSA)
• Littoral Antisubmarine Warfare (LASW)
• Expeditionary Logistics (ExLog)

• Fleet/Force Protection (FFP)
• Littoral Combat and Power Projection (LCCP)
• Missile Defense (MD)
• Advanced Capability Electric systems (ACES)
• Autonomous Ops (AO)
• Total Ownership Cost Reduction (TOC)
• Capable Manpower (CM)
• Warfighter Protection (WP)

• Other
• Pass-Through - to JFCOM
• OSD Directed
• Infrastructure - Efforts enabling ONRs mission
  execution such as IFO, conferences, outreach

• Quick Reaction
• SwampWorks
• Tech Solutions
• MCWL

8
Science Technology Funding
FY 04 (PB, M) 668.5 500.0 344.5 201.3 Total
Presidents Budget ST 1,714.3 528.0 Total
DoN ST Funding 2,242.3

• Three ST Portfolio Categories
• 1. Discovery and Invention (DI) . . . . . . .
  . . . .
• 2. Future Naval Capabilities (FNC) . . . . . . .
  . . .
• 3. Innovative Naval Capabilities (INC). . . . .
  . . .
• Other ST
• Pass-Through and Other . . . . . . . . . . . . .
  . . . . .
• JFCOM, Naval Warfighting Experiments, etc
• Congressional Actions . . . . . . . . . . . . . .
  .

9
National Naval Responsibilities
What we do all the time

• Naval environment is distinctive and complex
• Naval science and technology must maintain areas
  critical to ensuring Naval superiority
• Robust U.S. research community
• Adequate pipeline of new scientists and engineers
  in Naval-unique disciplines
• Ensured future ST products to Naval forces
• National Naval Responsibilities
• Ocean Acoustics
• Underwater Weaponry
• Naval Engineering
• Undersea Medicine (consideration)

10
Discovery Invention Grand Challenges

• The Grand Challenges are
• Visionaryfor the Navy Marine Corps after Next
• Compellinganswering a Naval need
• Long-termcompleted over 20 to 50 years
• Very difficult, but probably achievable
• Multi-disciplinary with multiple participants and
  multiple opportunities
• But not
• Mere linear extensions of present programs
• Massive engineering projects

• Four Grand Challenges (established 1998 vetted
  by Jasons and NSB)
• Naval Battlespace Awareness
• Electrical Power Sources for Naval Forces
• Naval Materials by Design
• Multifunctional Electronics for Intelligent Naval
  Sensors

Images courtesy Nobel e-Museum
11
Future Naval Capabilities (FNCs)
What we do for tomorrow

• Advanced Capability Electric Systems
• Autonomous Operations
• Capable Manpower
• Fleet / Force Protection
• Knowledge Superiority Assurance
• Littoral Antisubmarine Warfare
• Littoral Combat Power Projection
• Expeditionary Logistics
• Missile Defense
• Organic Mine Countermeasures
• Time Critical Strike
• Total Ownership Cost Reduction
• Warfighter Protection

Autonomous Operations
Warfighter Protection
Missile Defense
Investment 500M per year
12
Swamp WorksTech Solutions

• Swamp Worksrapidly delivers breakthrough Naval
  capabilities for
• Emergent operational problems
• Enduring operational barriers challenges

Tech Solutionsweb-enabled direct connection to
Sailors and Marines
13
Naval Research delivers
Thermobarics
14
The Business Side of Science
Acquisition Administration
15
University Business Affairs

• Pre-award Assistance
• Full Award Administration, which includes
• Invoice certification
• Cash Management
• Expenditure Rate Monitoring
• Audit Resolution
• Property Administration Purchasing System
  Analysis
• Engineering Support Services
• Indirect Cost Negotiations

16
ONR Regional Offices
http//www.onr.navy.mil/02/024/Offices.asp
17
TOP 10 FREQUENTLY ASKED QUESTIONS
18
Question 1

• How can I find out who my contract or grant
  administrator is if I have a question?
• Access the ONR webpage at http//www.onr.navy.mil.
  Then go to the Acquisition column and select
  University Business Affairs link. At the top,
  select the Office Locator link, which will bring
  up map of the United States. Click on the state
  where the University or organization is located,
  and you will get an alphabetical Regional listing
  of the schools or organizations in the state you
  selected. Locate the one you are interested in
  and click on it.

19
Question 2

• I received a report from your office, requesting
  final documents for expired awards. The report
  is requesting forms that I am not familiar with.
  Where can I obtain these forms?
• Many of forms can be downloaded from the ONR
  website http//www.onr.navy.mil/02/024/forms
  .asp

20
Question 2 (cont.)

• Some of the commonly used forms are
• - SF269 Financial Status Report
• - SF270 Request for Advance or Reimbursement
• - SF272 Federal Cash Transactions Report
• - SF294 and 295 Subcontracting Reports
• - SF298 Report Documentation Page
• - SF1034 Public Voucher
• - DD 882 Report of invention
• - NASA 1018 NASA Property in the Custody of
  Contractors
• - DoD 1662 DoD Property in the Custody of
  Contractors

21
Question 3

• Last month, I submitted a payment request/voucher
  directly to Defense Finance Accounting Service
  (DFAS). They returned it with a letter
  requesting certification. Where should I send my
  payment request/voucher?
• Payment requests/vouchers should never be sent
  directly to DFAS, unless specified. They should
  be submitted to a Contract Administration Office
  or a Procurement Office for certification.
  Payment requests may go to several different
  addresses depending on what is stated in the
  grant or contract.
• For Contracts instructions are listed in
  Section G of the contract, under Contract
  Administration Data. This section will tell you
  how many copies of the invoice to submit and
  where to send it.
• For Grants Invoicing instructions should be
  spelled out in the body of the grant.

22
Question 4

• My award has ended and I discovered that I didnt
  bill for the last expenditure, is it too late to
  bill?
• You can bill for services after the expiration
  date, as long as the expenditure took place
  within the performance period and if there are
  funds remaining on the award. Contact your
  Contract Administrator immediately to discuss the
  situation

23
Question 5

• How would I check the status of overdue payments
  on DoD awards?
• DFAS has created a website for you to look up the
  payment status on your own. It is a centralized
  website for all of the DFAS vendor and commercial
  pay operations. Go to
• https//myinvoice.csd.disa.mil
• Please wait 30 days for manual invoices to be
  processed and posted. If you still did not
  receive your payment, please contact your
  cognizant ONR Administrative Office.

24
Question 6

• I havent received payment on a DoD award and
  have been told that the money has expired. Can I
  request payment?
• Yes, if you are owed the money, you can still get
  paid. For money that is expired, it will require
  coordination between DFAS, the Administration
  Office and the funding agency to request current
  year funds.

25
Question 7

• We have spent our current funding and we havent
  received the next increment. When can I expect
  it?
• Check with the Program Officer to determine if
  they will be providing additional funding. If
  further assistance is needed, contact your ONR
  Contract/Grant Administrator.

26
Question 8

• I submitted a proposal to ONR. Can you tell me
  the status?
• You should contact the person identified in the
  solicitation or the Broad Agency Announcement
  (BAA). They will be able to provide you with the
  status or direct you to the proper POC for
  further information.

27
Question 9

• We have a grant that is going to expire soon and
  the PI needs more time to finish his research.
  Is it possible to request a no funds extension
  (NFE)?
• Yes, but it depends on the sponsoring agency
• For grants with other agencies, you will need to
  look at the terms and conditions that apply to a
  specific grant/contract. Contact your Grant
  Administrator for the correct POC to request a
  NFE.
• If the grant is awarded under the Federal
  Demonstration Partnership (FDP) terms and
  conditions, from an agency other than ONR, you
  can normally extend the expiration date up to
  twelve months. However, you must notify the
  cognizant awarding agency official in writing
  with the supporting reasons, at least thirty (30)
  days prior to expiration of the award. Please
  check the grant to ensure this provision has not
  been modified by the awarding agency.

28
Question 10

• When is an approval required for rebudgeting?
• Ordinarily, under grants, prior approval is not
  needed. OMB Circular A-110 only requires prior
  approvals for
• The transfer of amounts budgeted for indirect
  costs to absorb increases in direct cost, or vice
  versa, if approval is required by the Federal
  awarding agency or
• The inclusion, unless waived by the Federal
  awarding agency, of costs that require prior
  approval in accordance with OMB Circulars A-21,
  A-122, 45 CFR part 74, Appendix E, or 48 CFR part
  31, as applicable or
• The transfer of funds allotted for training
  allowances (direct payment to trainees) to other
  categories of expense.
• Specific agency provisions may require prior
  approvals other than those listed above.
• For contracts, prior approval is always required.

29
USEFUL WEBSITES

• Office of Naval Research
• www.onr.navy.mil
• Defense Finance and Accounting Service -
  www.dod.mil/dfas
• The Federal Demonstration Partnership
  www.thefdp.org
• National Property Management Association
  www.npma.org
• National Contract Management Association
  www.ncma.org

30
Central Contractor Registry

• All prospective Contractors must be registered in
  the CCR database prior to award of a contract,
  purchase order or basic agreement. All
  applicants may register electronically at
  www.ccr.gov Complete and accurate electronic
  registrations are processed within 48 hours.

31
The Circles of Life!!
32
AwardWeb

• Outgrowth of ONR Pilot with a few universities
  in 1998
• First agency award with downloadable data
  elements
• Designed with two options - PDF (Read,
  Forward, Print) - EDI (Transfer to Database)
• Precursor to Grants.gov electronic award
  capability
• Key step in End-to-End automation of grants
  process

33
AwardWeb

• AwardWeb went Live in JAN 2000
• Grant Recipients Receive Email Notice of Award
• Email Contains Embedded Web Site Which can
  Invoke Award Web from the Email
• UserIDs/Passwords are Maintained by ONR
  (Assigned by ONR at Time of First Award)
• Paper Turned Off in MAY 2000

34
AwardWeb -- To Find Out More
http//www.onr.navy.mil/awardweb/ Or Send an
email to onr21_at_onr.navy.mil
35
Electronic Commerce - PayWeb

• PayWeb - Electronic Data Interchange - Electronic
  Funds Transfer
• A web based invoicing application that ties into
  our existing EDI/EFT process. It provides a
  no-cost, easy to use interface. PayWeb is
  currently in production and opened for any and
  all educational and non-profit institutions for
  awards administered by the ONR Regional Offices.
• The ONR PAYWEB/EDI/EFT bill paying system enables
  universities/non-profits to submit their payment
  requests electronically, using formats for
  either
• SF 270 for grants and cooperative agreements
• SF 1034 for contracts
• Govt reviews and approvals are done
  electronically and payment is made by the
  electronic funds transfer from the Federal
  Reserve System to the recipients financial
  institution.

36
PayWeb

• PayWeb is a web-based payment request system.
• One time transition process.
• It eliminates the delays of mailed invoices.
• It minimizes clerical errors due to internal
  processing checks.
• Institutions and non-profit entities can track
  their payment requests and payment dates.

37
PayWeb

• The ONR electronic bill paying system has been
  operational since 1991
• Current version has been adopted as the DoD
  standard for electronic payments to universities
  / non-profits
• Soon will be expanded to transact with
  other-than-Navy paying offices utilizing WAWF
  technology.
• Future enhancements will include online SF 269
  SF 272 submission.

38
PayWeb

• Benefits include
• Paper free processing
• No cost
• Error rate reduction
• Rapid identification of any payment requests
  requiring correction
• Greatly improved payment time for recipients
• Improved expenditure rates for Federal agencies

39

• What is Wide Area Workflow?

40
Wide Area Work Flow Receipt and Acceptance
(WAWF)

• WAWF is a Web-Based system for vendors to
  electronically submit invoices/receiving reports,
  and the Government to inspect, accept/reject,
  receive, certify and pay electronically.
• ONR first piloted WAWF in August 2003
• Used for SBIRs and all STTRs in FY 2004
• The process is easy and is increasingly being
  used at ONR.
• ONR will use WAWF for virtually all contracts
  with commercial contractors. Universities still
  use PayWeb for invoice processing. PayWeb will
  interface with WAWF as part of the back-office
  processing.
• WAWF is mandated DoD Wide Full Deployment in FY
  2005

41
Wide Area Work Flow Receipt and Acceptance
(WAWF)

• WAWF came about as the result of the 2001
  National Defense Authorization Act which required
  claims for payment under a DOD contracts to be
  submitted and approved in electronic form
• DFARS lists WAWF as the primary electronic
  Invoicing (252.232-7003) and Material Inspection
  Receiving Report (252.246-7000) mechanism for
  DoD PayWeb is also authorized as an acceptable
  method for electronic Invoice submittal.

42
Grants.gov

• ONR / Navy / DoD has been active participant in
  developing the implementation plan of Public Law
  106-107.
• Four goals are
• Improve effectiveness and performance of Federal
  programs
• Simplify Federal grant application and reporting
• Improve Delivery of Services to the public
• Greater coordination between Federal agencies and
  grant recipients.

43
Grants.gov

• The digital signature issue within DoD has been
  resolved.
• ONR is in the final stages of completing the
  electronic SF 424 form. Completion of this form
  is tied to ONRs conversion to its new
  back-office pre-award system (NAVRIS). NAVRIS
  goes live July 2005.
• ONR will be looking for test universities to
  validate the proposal submission process.
• Contact Joe Bass or Frank ODay at ONR for
  additional information.
• bassj_at_onr.navy.mil
• odayf_at_onr.navy.mil

44
AdminWeb

• What Is It?
• A web and email application that reminds
  Performers about the responsibilities for on-time
  delivery of grant/contract end items.
• This application dramatically improves
  Contractor/Grantee performance in research
  reporting, and sharply reduces manual processing
  of reports.

45
AdminWeb

• The benefits are better dissemination of
  technical and patent information, faster reuse of
  unneeded research funds, reduced labor cost, and
  enhanced credibility for ONR as the research and
  research administration of agency choice.
• AdminWeb will be going through a major revision
  this coming year. Greater functionality to submit
  reports for all ONR administered awards in an
  electronic format. Will be directly connected to
  ONRs back office systems.

46
AdminWeb -- Benefits Summarized

• Current
• Provides users monthly e-mail summary reminders
  of awards expiring, reports due, reports overdue.
• Provides users real-time, continuous Web access
  to information in ONR data system about expired
  and expiring awards and status.
• Fosters satisfactory completion of award
  requirements, and timely award payment and
  closeout.
• Future
• Added functions help move toward paperless
  performance, facilitate award compliance /
  completion.
• Ability to submit Property reports.

47
AdminWeb -- To Find Out More

• Contact
• Diana Nichols-Gilchrist, [phone] or
• Christina Bennett [phone]
• at ONR Headquarters,
• or visit website.
• www.onr.navy.mil/adminweb
• or
• Contact your UBA field reps.

48
Some Other Recent Developments

• Over the last year and more, final award
  reporting requirements for ONR Awards have been
  streamlined, and are reflected in the new award
  forms
• For grants, ONR Final Technical Report is
  required only if Program Officer determines it is
  necessary.
• For grants, no final ONR property report unless
  there is Govt owned property.
• For ONR grants, no SF269 final cost report,
  unless advances are used, or Govt determines
  specific need based on risk.
• ONR is administering select NIH awards. Our
  delegation is currently confined to property
  administration.

49
Some Other Recent Developments

• ONR Regional Offices now use common set of back
  office tools for proactive award administration
• Tools include...
• Automated monthly e-mail listing of new awards
  received, with detail on which reports are
  monitored by ONR.
• Annual reminder about candidate awards for
  Government property reporting.
• Automated E-Mails and follow-ups within Govt
  activities to get awards closed out.
• Three times yearly notifies recipients and ONR of
  possible Expenditure Rate problems.
• Electronic Document Management System. Goal to
  receive, store, and distribute all award and
  award related documents. This includes proposal
  documents received from grants.gov and award
  documents from all DoD and NASA awarding
  agencies and closeout documents submitted
  through AdminWeb.

50
Billing Rates

• BACKGROUND
• DoD research programs typically run from one to
  three years
• Programs are often incrementally funded for each
  fiscal year
• Programs are scrutinized on an annual basis for
  expenditures and expenditure rates
• Programs that dont measure up to goal may have
  performance or other problems that need addressing

51
Billing Rates

• THE PAYMENT PROCESS
• Letter of credit is not used on DoD awards
• Individual payment requests are submitted (unless
  scheduled payments are in effect)
• Monthly cycle is desired billing timeframe
• EDI/EFT, PayWeb or manual voucher processing
• Recipient chooses Advance or Reimbursement
  basis
• ONR field offices approve requests if part of our
  delegation
• (always a part of ONR delegation)
• ONR checks payment requests for routine errors,
  available funds, period of performance, etc.
• Field tracks billing information in CAMIS
  database system
• CAMIS information allows for monitoring of
  BILLING RATE

52
Billing Rates

• THE PAYMENT PROCESS (Continued)
• Defense Finance (DFAS) office processes actual
  payment to recipient once request is approved by
  ONR (or other) office
• Different DFAS centers handle different agencies
• DFAS Charleston for most Navy accounts
• Obligations / expenditures are tracked in agency
  financial management systems (STARS for Navy)
• Info in financial management systems is the
  official info to monitor EXPENDITURE RATES

53
Billing Rates

• FINANCIAL PERFORMANCE NOTIFICATIONS
• Three times a year, scheduled to tie in to key
  benchmark dates for evaluating program
  performance.
• Criteria used looks at expected straight-line
  spending, date when the money was provided, etc.,
  and performers billing of current year funding
  to date, etc.
• Automated Notifications go out (which the field
  office can override) to recipients deemed to have
  potential financial performance problem awards.

54
Billing Rates

• FINANCIAL PERFORMANCE NOTIFICATIONS
• Recipient is asked to provide information back to
  the Field Office on causes for apparent billing
  lag.
• That information is shared with ONR Program
  Officer, who may use it to adjust timing of
  future increments, or for other program
  decisions.
• Information is stored in ONRs CAMIS system, so
  performer may not receive subsequent Email if
  performance is satisfactorily explained.

55
Billing Rates

• The goal, as much as possible, is to have this
  E-Mail process be chief trigger mechanism for
  oversight of ONR assistance awards financial
  performance
• Recipient still has obligation to notify the
  Government of major performance issues.
• ONR program or other personnel may still need
  to request information about financial or program
  performance.

56
Cash Management

• BACKGROUND
• Individual payment requests may be either on
  either Advance or Reimbursement basis.
• Advances are the preferred mechanism for
  nonprofit organizations with suitable financial
  controls.
• Some DoD agencies may choose to use Scheduled
  Payments (such as ARO or AFOSR). . .
• BUT receiving advances or Schedule Payments adds
  additional recipient obligations and oversight,
  as well as Federal monitoring.

57
Cash Management

• That oversight required is Cash Management.
• CASH MANAGEMENT is the business process of
  overseeing Government funds on hand compared to
  the actual immediate needs for that program.
• The Purpose of Cash Management is to minimize
  the time elapsing between transfer of funds to
  the recipient and their expenditure for program
  purposes.

58
Cash Management

• OMB CIRCULAR REQUIREMENTS REVIEWED
• To receive advances, institutions must have
  adequate procedures and controls to minimize time
  from receipt of funds until disbursement.
• Amounts received must be for immediate needs.
• Advances received (over a minimal amount) must be
  kept and tracked in interest-bearing accounts.
• Interest earned must be refunded to the
  Government.

59
Cash Management

• ONR FIELD OFFICE POSTAWARD ROLE
• If the field office is delegated Cash Management
  award responsibilities, personnel have
  responsibility to monitor
• Is the institution actually utilizing /
  receiving advances?
• Are advances properly identified as such on the
  SF270 payment requests?
• Is recipient minimizing time and AMOUNT for
  cash on hand?
• Are timely, adequate financial reports being
  submitted, if required, such as the SF272?
• Is interest tracked and remitted, if applicable?
• Tools are now available in CAMIS system to
  better track SF272 data and identify potential
  problems awards.

60
ONR Update and Initiatives -- Summarized

• ONR innovations affecting postaward performance
  are designed to
• Keep up with technological change
• Steer toward a paperless environment
• Simplify fulfillment of award requirements
• Speed and simplify the payment process
• Stress the need for compliance with award terms
• Enhance the ability of recipients and ONR to
  monitor award status and close out completed
  awards
• Focus on awards and aspects of award
  administration where the risk is.

61
ONR Acquisition -- Key Contacts