Update: The following update relating to this announcement has been issued:
- February 7, 2014 - See Notice NOT-OD-14-054. Notice of Revised Term of Award for All Recovery Act Awards to Repeal Section 1512 Reporting Requirement Effective February 1, 2014.
Release Date: December 13, 2011
NOT-OD-10-067: Recovery Act: Notice on the Proper Management of Recovery Act Spending to Promote Job Creation and Increase the Pace of Scientific Research; and Policy Limiting Second No-Cost Extensions to Recovery Act Grants
National Institutes of Health (NIH)
The purposes of this Guide Notice are to 1) notify recipient institutions and Program Director(s)/Principal Investigator(s) (PDs/PIs) that NIH is revising the terms and conditions on some active Recovery Act awards to amend the current automatic no-cost extension authority by limiting the ability for awardees to extend the final budget period of a project period to no later than September 30, 2013 without prior NIH approval; 2) establish a procedure for recipients to request prior NIH approval for extensions beyond September 30, 2013; and 3) provide options for those recipients unable to accept the revised terms of award described below.
Background:
The NIH received funds from the American Recovery and Reinvestment Act of 2009 ( Recovery Act or ARRA ) to stimulate job creation and economic development activity related to medical and behavioral research for the Nation through research and infrastructure grants and contracts.
On September 15, 2011, the Office of Management and Budget issued OMB memorandum M-11-34, "Accelerating Spending of Remaining Funds from the American Recovery and Reinvestment Act for Discretionary Grant Programs". This memo directed NIH and other Federal agencies to take steps to ensure grantees complete Recovery Act projects by September 30, 2013, and directed agencies to " revise the terms of Recovery Act discretionary grant agreements, to the extent permitted by law, to provide for reclamation of funds that remain unspent after September 30, 2013, absent a waiver issued by OMB pursuant to this memorandum." At this time NIH has not determined the need for waiver requests to OMB so NIH continues to strongly encourage grantees to accelerate expenditures for all active Recovery Act grants regardless of the current or projected project period end date.
Revised Term of Award for All Recovery Act Awards to Amend the Authority to Extend the Project Period without Additional Funds
All NIH grants awarded with Recovery Act funds included the standard NIH Terms of Award. The NIH Terms of Award include the provision for recipients to extend the final budget period of a project period without additional funds. In accordance with the recent OMB memorandum and after discussions with HHS, NIH will revise all Recovery Act awards that currently extend beyond or could potentially extend beyond September 30, 2013 to limit this authority. It is important to note that the majority of the NIH ARRA-funded grants are not affected by this award term modification. For any grant that could potentially extend and still end before September 30, 2013 no amendment of the award terms will occur. Grantees continue to have full authority to extend the project period without additional funds; however, all grantees are strongly encouraged to accelerate expenditures of these projects and use this extension authority judiciously.
1. Grants that Currently End September 1, 2012 August 31, 2013 and Could Extend Beyond September 30, 2013 with an Initial Automatic No-Cost Extension
Grant awards in this category will be revised to limit the automatic extension authority so that such extensions may not go beyond 9/30/2013. The following award term will be included on these awards:
"This award is revised to limit the no-cost extension provision of the NIH terms of Award. Should an extension be necessary for this project, the project may not be extended beyond 9/30/2013 without prior written approval from NIH. By drawing down funds from the HHS payment system, the recipient agrees to this amended provision and all other terms and conditions listed in the Notice of Award."
Recipients are reminded that all notifications of this initial extension must still be submitted through the eRA Commons No-Cost Extension module. See NOT-OD-11-098 for additional information on mandating the use of the No-Cost Extension module in the eRA Commons.
2. Grants that Currently End September 1, 2013 September 30, 2013
The eRA Commons No-Cost Extension module only allows grantees to request extensions in one month increments. Therefore, for grant awards in this category no automatic extension will be available. Awards will be revised to remove the automatic no-cost extension provision and in turn replace this with a prior approval requirement. The following award term will be included on these awards:
"This award is revised to eliminate the no-cost extension provision of the NIH terms of Award. Should an extension be necessary for this project, such a request must now receive prior approval from the NIH awarding component. By drawing down funds from the HHS payment system, the recipient agrees to this amended provision and all other terms and conditions listed in the Notice of Award."
3. Grants with Project Period End Dates Extending Beyond September 30, 2013
Research grant awards in this category include ARRA grants awarded under the NIH Director’s New Innovator Program. Many Recovery Act Construction grants are also in this category. If any provision for an automatic extension exists for these grants, awards will be revised to remove the automatic provision and replace it with a prior approval requirement. NIH staff administering these grants will also reach out to recipients to discuss possible strategies for accelerating progress and expenditures. Revised award terms will vary depending on the award terms provided in the current Notice of Award.
Process for Requesting Prior Approval to Extend Beyond September 30, 2013
For any Recovery Act award anticipated to continue past September 30, 2013, NIH recipients must notify the Grants Management Officer listed on the Notice of Award in writing that an extension of the final budget period of the project period is vital for the completion of the project. All requests must be received on or before June 1, 2012, regardless of the current project period end date. Prior written approval to extend beyond September 30, 2013 will only be provided under one or more of the following circumstances, as described in OMB Memorandum M-11-34 and NIH Guide Notice NOT-OD-10-067, and only after NIH receives a waiver from OMB:
- The project is long-term by design and acceleration would compromise core programmatic goals;
- The project must undergo complex environmental review that cannot be completed within this timeframe;
- Contractual commitments between the awardee and vendors/subrecipients legally prevent adjusting the timeline for spending;
- Special circumstances exist where acceleration may cause unnecessary harm or unreasonable risk to vertebrate animals or human subjects involved in the research (such as in ongoing clinical trials).
Process for Recipients Unable to Accept the Revised Award Terms
Recipients with concerns regarding these revised terms and conditions must contact the awarding IC to discuss ways to accelerate grant expenditures and ensure project completion by the target date of September 30, 2013.
For inquiries on a specific grant, please contact the NIH contacts listed on the Notice of Award.
For general inquiries on this notice, please contact
Division of Grants Policy
Office of Policy for Extramural Research Administration
National Institutes of Health
6705 Rockledge Drive, Suite 350
Bethesda, MD 20892
Telephone: (301) 435-0938
FAX: (301) 435-3059
EMAIL: GrantsPolicy@od.nih.gov
and Human Services (HHS)
