Rationale

Competitive research or instrumentation requests for proposals, including ones related to centers, may require or strongly encourage matching funds. The magnitude of cost share requirements may be as high as 50% of the total project cost. Primary sources of institutional matching include allocations of indirect cost recovery, in-kind contributions, and private or endowment funds. These sources are comparable to working capital, and their limited availability at Oregon universities can become a significant barrier to research growth in competition with other institutions nationally. Oregon BEST has an opportunity to significantly influence the funding of its research priorities and automatically leverage its investment of state appropriated dollars by committing matching funds.

In addition, Oregon BEST has an opportunity to positively influence University-related product development and commercialization activity, as well as increase research capacity by providing matching grants for certain joint projects with industry partners.

Commitment of Funds

A commitment of matching funds is different from an outright expenditure (as in the other Oregon BEST budget categories) as follows:

• The probability of a federal proposal being funded can vary significantly, so there will be a routine strategy to overcommit matching funds in light of the statistics regarding success rates for proposal submissions.
• The timing of cash flow may be outside of the current biennium given the cycle time for proposal preparation, submission, review, and provision of awards (e.g. most federal proposals are multi-year and are not initiated for approximately a year after the proposal submission date).
• Language in proposals related to matching funds might include caveats regarding future budgets, and non-committal phrases like “may commit up to $xxx”
• Funds will only be disbursed to University partners, in accord with Master Grant Agreements between Oregon BEST and the Oregon Universities. No grants will be made directly to industry partners.

Given the above, this budget category is highly leveraged, but care must be taken to manage exposure appropriately. In the end, institutions decide whether to accept an award in light of financial and match requirements, and sources (including Oregon BEST) available to provide the match.

Purpose

The Oregon BEST Proposal Matching Program is intended to assist Oregon BEST Member Faculty and research teams to win competitive proposals for research grants/contracts, research equipment acquisition, and product development/commercialization. Our desire — in close collaboration with the campus research offices — is to approve matching funds in all cases which meet our criteria (detailed below). This may or may not be realistic depending on the volume of requests received.

The proposed use of Oregon BEST matching funds can be mostly at the discretion of the PI, and, ideally provide support of activities that strengthen the competitiveness of the proposal, but that may be difficult to fund with the agency's funds. The funds must be used to strengthen the PI's (and PI's institution) research capacity and long-term competitiveness.

Types of Projects Eligible for Matching Grants

Four basic types of matching grants are envisioned:

1. Matching funds for extramural research proposals. Oregon BEST will consider providing matching funds (for any part of a proposed project, including dedicated equipment acquisition), up to 10% of the total budget, as described in the proposal sent to the funding agency.
   1. The Oregon BEST matching amount may be increased to up to 15% at the discretion of the Oregon BEST Research Committee in the case of collaborative proposals with substantial involvement by two or more Oregon BEST-affiliated institutions.
   2. If the Oregon Nanoscience & Microtechnologies Institute (ONAMI) is also matching the same proposal, Oregon BEST's match will be reduced to 8% (or 12% for multi-institutional proposals).
2. Matching funds for equipment acquisition. Oregon BEST will consider providing up to 33% of the total/actual acquisition cost for equipment for shared use, normally in a designated Oregon BEST (or Oregon BEST approved) shared user facility. At least 33% must come from competitive extramural sources. Equipment matches are available for research and development/commercialization applications. The funding source may be a grant or donation from federal, private or industry sources.
3. Installation and set up of donated equipment. Oregon BEST will consider providing up to 33% of the actual market/“street” value (convincingly documented) of donated equipment for moving, installation, and initial spare parts inventory.
4. Matching funds for development or commercialization projects. Oregon BEST will consider providing matching funds, up to 10% of the total budget, for the University portion of a development or commercialization projects where a University PI partners with an industry partner to win external funding from a competitive source, such as a venture capital fund or SBIR grant.

Oregon BEST's Board of Directors will periodically review and approve a “risk budget” for proposal matching based on estimated financial exposure. This will govern the total availability of Oregon BEST matching funds. In most cases, a maximum of $200K will be committed to a single project.

Award of Matching Grants

In all cases, the following considerations will apply:

1. Requests for funds must be made in advance of proposal submission and the commitment of those funds used to increase the competitiveness of the proposal. Thus, requests for matching funds will not be granted after grants have been awarded.
2. Preference will be given when there is a stated requirement for matching funds, i.e. an Oregon BEST matching funds grant is critical for winning the proposal.
3. In order to avoid overcommitting the matching funds too quickly, Oregon BEST grants will typically be limited to $200K/proposal, although consideration will be given to larger requests, which should be expected to require additional justification and processing time.
4. PIs are strongly encouraged to obtain the written or e-mail agreement of their Vice President of Research to request Oregon BEST matching funds. In any case, campus agreement to “backstop” the matching requirement in the event Oregon BEST funds are exhausted is required (2d below).
5. Development or commercialization matching requests should demonstrate that the project will enhance the Research, Development and Commercialization capacity of the University.

Process for Submission of Matching Fund Requests

Principal Investigator(s) must be Oregon BEST faculty member(s) and submit proposals for matching considerations to the Oregon BEST Executive Director at least one month prior to submission.

Required information:

1. Pre-proposal or draft proposal
   1. Including description of how requested Oregon BEST matching funds will be used
   2. Title of project (suitable for posting on an external website if application is successful)
2. Additional documentation (brief answers preferred) addressing:
   1. Relevance of request to Oregon BEST thrust areas and/or new areas of opportunity
   2. Estimated probability of funding (needed for exposure assessment)
   3. Estimated cash flow timing (may be outside current biennium) for requested matching funds
   4. Agreement from participating campuses to “backstop” funds in the event Oregon BEST funds are not available at the time an award is made
   5. Projected performance versus Oregon BEST investment scorecard objectives:
      1. What % of the total cost of this investment is being requested from BEST (33% maximum for shared equipment, 10-15% maximum for extramural research proposals, 10% maximum for development/commercialization proposals)? What are the other sources of funds?
      2. How will this project/investment attract outstanding people to Oregon (graduate students, faculty, and/or entrepreneurs/small companies)
      3. What is the extent of inter-institutional collaboration, including industry, in this project/investment
      4. How does this project enhance University development or commercialization capacity
      5. What commercial opportunities might be enabled by this project/investment?
      6. Will there be a later request for continuing funding for this project/investment? If so, when and how will self-funding be achieved

Review and Approval of Matching Fund Requests

• PIs should submit matching funds request with complete documentation (per above) to the BEST Executive Director at least two weeks (preferably one month) prior to the submission deadline for the final proposal. Oregon BEST may not be able to respond to later requests.
• Requests will be reviewed by the Oregon BEST Executive Director (or an assigned BEST Management Team member) who oversees any necessary revisions and makes recommendations for matching commitments to the Oregon BEST Research Committee. The Executive Director and Oregon BEST Research Committee will consult with members of the Oregon BEST Leadership Team for additional feedback as needed.
• The Oregon BEST Executive Director and Research Committee will review and approve requests on a rolling basis through meetings, e-mail exchanges, and/or conference calls.
• Notice of Oregon BEST matching commitment will be given to the principal investigator(s) prior to final proposal submission to allow adequate time for institutional review, approval of final proposals and associated budget detail, and provision of a support/commitment letter from Oregon BEST (if requested).
• Upon notification from the PI(s) that a proposal has been funded, the Oregon BEST Management Team and appropriate campus personnel will execute the necessary contracts/statements of work to enable the flow and tracking of funds.

Reporting

• At the end of the grant period, the principal investigator(s) must provide a copy of the final technical and financial reports made to the primary funding agency.
• In addition, a final assessment of project performance relative to Oregon BEST objectives must be submitted.
• All such documentation shall be provided to the Oregon BEST Executive Director in a timely fashion, typically within three months of the end of the project period.

About Oregon BEST: The Oregon Built Environment and Sustainable Technologies Center (Oregon BEST) brings together Oregon's significant R&D strengths in the key emerging areas of renewable energy and green building products and services, with the goal of increasing research and accelerating public/private partnerships to transform that research into on-the-ground business opportunities and Oregon jobs. Oregon BEST partners include the Oregon Institute of Technology, Oregon State University, Portland State University, the University of Oregon, as well as numerous private businesses, government agencies, and non-governmental organizations. http://oregonbest.org