Working With Industry

Working With Industry 16 Feb 2017 E. Dan Hirleman Chief Corporate and Global Partnerships Officer Professor of Mechanical Engineering Purdue s Strategic Plan HIGHER EDUCATION AT THE HIGHEST PROVEN VALUE Industry Partnerships are Key OCGP Working with Industry 1

Strategic Partnership Mission and Benefits Mission: Increase the impact, scale and sustainability of Purdue's corporate and global partnerships Benefits: Focus on exceptional value to the company and Purdue Streamlined access to faculty, students, facilities, and resources Flexible approaches to IP and sponsored research agreements Sponsored Award Trends $450 $400 $350 Federal OtherFY2015 Industry/Foundations - $133M >1200 Projects 500 Companies 500 Faculty PI Awards in Millions $300 $250 $200 $150 $100 $50 $0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 OCGP Working with Industry 2

Awards by Agency FY14 Awards System wide: $389 Million FY15 Awards System wide: $401 Million 3% 3% 5% 6% 9% 10% 11% 17% PRF/PU, $14 M DOE, $14 M State/Local Govts, $21 M USDA, $25 M DoD, $38 M DHHS (NIH), $42 M Other Fed<$41M & Foreign Govts., $4M NSF, $68M 19% 14% Foundations and Other $134M Private Sector $56M Purdue Partners Mission: Increase Impact Scale, & Sustainability of Corporate Partnerships #2: Broaden Faculty Engagement #1: Intensify Select Corporate Relationships #3: Integrate Vital Data Informatics (PP Platform) OCGP Working with Industry 3

Strategic Partnership Focus Strategic Partnership Partnership Niche Connections Preferred Supplier Entrepreneurial Open Season Comprehensive Institutional level engagement, long-term horizon, joint strategic planning Broader engagement, focus on mutual benefits Engagement to meet narrow clustered needs HR driven relationships primarily for recruiting, testing Transactional, one off interactions and projects Increasingly Strategic Engagement Acknowledgement :P.J. Hommert, Sandia Working Modes OCGP works closely with Corporations and Faculty to Address their Shared Goals and Challenges: Research Goals Long-term relationships (and/or Master Agreements) streamline research. Multi-disciplinary approaches are highly valued. Recruitment and Communication Student internship / employment opportunities a priority. Improved methods for communicating is a priority. Use of Time & Resources It is a priority for corporations and faculty that time and resources are used wisely. Coordinating the business and academic calendar is a challenge. OCGP Working with Industry 4

Sampling of Recent Corporate Visits 9 #3: INTIGRATE VITAL DATA ANALYTICS We will enhance Purdue s predictive analytics, agility, accessibility and other corporate capabilities through technology integration. https://tableau.itap.purdue.edu/#/views/ppp-poc/ppp-poc?:iid=1 OCGP Working with Industry 5

Value of Working with Industry Broadened funding opportunities Potential cost-share and support for federal funding Valuable feedback Student opportunities Closer to nearer-term real-world impact Opportunity to bring technology to market Working with Industry Projects usually begin at a smaller scale, looking for early wins, and increase over time if successful Seek multidisciplinary impact and teams Projects often bring more complexity due to interdisciplinary nature Looking to define impact on future products Expect deliverables on a deadline and on budget Follow-through and Follow-up are vital On-going communication OCGP Working with Industry 6

Considerations for Industry Overhead (Facilities & Administration/F&A) Not a tax this is a common misconception by industry Confidentiality is a must SPS creates and approves all CDA/NDA/PIA s Do not sign a CDA/NDA/PIA without SPS review Do not send materials to a company until you have a MTA in place Intellectual Property Several options Partnership Success - Rolls-Royce 1 st Building in the Purdue Aerospace District, opening March 2017 Purdue and Rolls Royce $33 million strategic partnership, announced April 2016 Focused research on selected technologies Fellowships, Interns, Co ops High level Purdue partnership manager to ensure ongoing success OCGP Working with Industry 7

Rolls-Purdue Partnership >60 years of missioncritical partnership $18.3M / 5yr Research Agreement Interns, Co-ops, Rolls-Royce Fellows Customized Master s Deg. ~700 Purdue degrees 1 st RR Univ. Tech. Center (UTC) in US 1 st R&T facility in Aerospace District Partnership Success General Electric General Electric Aviation and Purdue President Mitch Daniels announcement of the Lafayette IN GE engine facility, June 2014 Purdue and GE s multiple long term partnerships Major Research thrusts: Advanced Manufacturing and turbine engines Substantial funding from the GE Global Research and Turbine Engine divisions Support of the Lafayette LEAP engine assembly facility Student engagement and employment OCGP Working with Industry 8

Partnership Success - Ford Ford Purdue Alliance Alliance Stanford, MIT, Michigan, Aachen, OSU, NWU, MSU, PU, VT Budget 3X since 2011, CEO sees value/roi Alliance Projects ~$100,000/year (up to 2 yr.) Grow # partners slower than funding 1 page concept papers w/ broad RFP Odds of funding ~50% (after co-develop proposal w/ Ford PI) Why Purdue? Strong performance in University Research Program (URP) & Dept. funding 21 projects at $1.1M invested from 2012-2016 4 projects at $450K (pending) for 2017 Alliance Managers: Bala Chander (bchander@ford.com) Dave McKinnis (mckinnis@purdue.edu) Photo courtesy of Ford (Krause/Chander/Herman) 2-9-17 Why do we work with Universities? No organization has sufficient internal resources for technical leadership in all areas of interest Companies that most effectively leverage external resources will gain competitive advantage Photo courtesy of Ford (Krause/Chander/Herman) 2-9-17 OCGP Working with Industry 9

Purdue Technical Assistance Program State funded business assistance Funds up to 40 hours of faculty involvement for qualified projects and companies Example: Mid-Land Meals Inc., Lafayette IN Charlene Sullivan (MGMT) helped the organization adopt good business practices. I love the way working with Purdue TAP makes you examine your own organization closer. They give you other ideas and ways of looking at your own programs and help you see your strengths. It is wonderful to have Purdue help us become better known across the state. Elaine Brovont, Executive Director, Mid Land Meals Inc. 19 Thank You! OCGP Working with Industry 10

Corporate and Foundation Relations (CFR) Michael Pedley Assistant Vice President, Corporate and Foundation Relations Impact of Corporate and Foundation Support Lilly Endowment $40 million to support new facilities, faculty and students $4.8 million to support the Military Family Research Institute $51 million to launch Discovery Park $25 million for College of Pharmacy $17.5 million for endowed professorships $20 million for Military Family Research Institute $3.5 million for entrepreneurial related programs 1

Corporate Relations Corporate Relations builds comprehensive relationships with companies o Research o Recruiting o Miscellaneous engagement points Promotes Purdue s needs and goals while providing return on investment for the corporation Coordinates a group effort across campus We are here to help! Companies Reasons for Supporting Recruiting students Faculty research Build its reputation Impact curriculum 2

Relationship Mapping Programs Companies Tend to Fund Recruiting activities Faculty and Graduate Student Research o Contracted o Gift Programs and centers (e.g. diversity, research) Undergraduate scholarships Graduate students/fellowships Facilities 3

Stewardship Provides comprehensive annual report to top corporations of activities and funding o Coordinate with SPS (financial reporting) o Follow up with faculty (research narrative) o Follow up with administration and faculty (program, centers etc.) 4

5

Foundation Relations 1. What is a foundation 2. Why we interact with them 3. How we interact with them What Are Commonly Thought of As Charities 501(c)(3) Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, Private Foundations Public Charities All 501(c)(3) organizations that don't qualify as public charities; some private foundations are additionally sub-classified as private operating foundations or private non-operating foundations, which receive some of the advantages of public charities 509(a)(1) 509(a)(2) Publicly-supported charities Exempt purpose activitysupported charities Foster National or International Amateur Sports Competition, Prevention of Cruelty to Children or Animals 509(a)(3) 509(a)(4) Supporting organizations for 509(a)(1) or 509(a)(2) charities Public safety charities 6

Nature of Foundation Giving Original donor had a cause they were interested in Desire to change a region Create national impact on a particular issue Gather information and disseminate information Provide ongoing support for specific organizations Why Interact with Foundations? They are set up to give away money to nonprofit entities Typically support: o Research, programs, seed money Typically do not support o Capital projects, endowments, ongoing operations 7

How Do We Find the Right Foundation? Requests for Proposals Faculty or program director identifies a potential connection A project, program, or research has been identified as an area of need and a priority Foundation Grant Process 8

Communicating with Foundations Contact us to help you with Letters of Inquiry Applications Phone Calls Reporting/Stewardship Invitations to Campus (rare) Remember Foundations exist to give away money to help society. If you have a project that fits with a foundation s guidelines, you are in fact helping them achieve their mission. 9

How to Get Help Michael Pedley, Assistant Vice President for Corporate and Foundation Relations, 4 3702, mgpedley@prf.org CFR Offices in Units College of Agriculture College of Engineering College of Health and Human Sciences College of Liberal Arts College of Science School of Management All units are supported by our central offices Questions? Thank You! 10

How to work with Industry and Evaluating Contracting Options Ken L. Sandel Senior Director Sponsored Program Services 1 Research awards $403M $450 Sponsored Research Awards system wide excluding ARRA $400 $396 $389 $401 $403 Millions $350 $300 $250 $261 $301 $334 $332 $332 $351 $319 $200 $150 $100 $50 $ FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 1

FY16 Awards System-wide: $403 million New Partnership Approach STRATEGIC PARTNERSHIP PARTNERSHIP PREFERRED SUPPLY CHAIN NICHE CONNECTIONS Comprehensive Institutional level engagement, long-term horizon, interconnected facets joint strategic planning Broader engagement, focus on mutual benefits HR-driven relationships primarily for recruiting, testing Engagement to meet narrow clustered needs Increasingly Strategic Engagement OPEN SEASON Transactional, one-off Interactions Acknowledgement :P.J. Hommert, Sandia 2

Purdue s Research Ecosystem Innovations & IP Portfolio Purdue Research Park Office of Technology Commercialization Foundry Innovation District Aerospace District Infrastructure World Class Facilities Discovery Park Core Facilities Centers and Institutes Instrumentation & Equipment Regulatory/Compliance Export Control Information Assurance Conflict of Interest Research Integrity Pre-Award Services Research Development Support Budget Preparation Contracting Support Project Logistics PI Support RESEARCH & DEVELOPMENT Talent World Class Faculty & Staff Graduate and Undergraduate Students STRATEGIC PARTNERSHIP PARTNERSHIP PREFERRED SUPPLY CHAIN NICHE CONNECTIONS OPEN SEASON Acknowledgement :P.J. Hommert, Sandia EDUCATIONAL PROGRAMS Experience $1.2 Billion in Federal Research 5yrs - 2012-2016 Flexible Contracting Models $600 Million in Annual Research Expenditures COLLABORATIONS Connections Strategic Partnerships Strategic Alliances Government Private Sector NGOs International Alumni Facility Clearance Classified Research Post Award Support Award Administration Business Office Support Regulatory Oversight Contracting Support Reporting Monitoring Cradle to Grave Contracting Mechanisms Contracts/Grants Cooperative Agreements ID/IQ Task Orders CRADA/PIA OTAs IPAs Master Agreements BOA WFO NDA MTA Facility Use Agreements Access to Talent Faculty Research Projects Faculty Sabbaticals Professionals in Residence Consulting On-line/Distance Education Students Internships/Co-Ops Job Opportunities Fellowships SPS provides support services for Purdue University s research enterprise. We have responsibility for proposal development (budget development), contract negotiation, award management, systems and data support and research quality assurance for all sponsored programs proposed and awarded within the Purdue University System. Sponsored Program Services FY 2016 3,639 Unique Projects (Grants) >12,000 Accounts (Sponsored Programs) 1,300 Unique Sponsors 522 Unique Companies Pre Award Contracting Post Award Data & Support Quality Assurance Proposal Development Organized by College FY 2016 3,970 Proposals $1.609 Billion Contract Negotiations Organized by Industry/ Federal/State/Misc. FY 2016 3,952 Fully Executed Contracts, NDAs, MTAs, etc. Award Management Organized by Sponsor FY 2016 4,069 Awards $403 Million System support and data needs Internal assessments & Audit engagements Sponsored Program Services: http://www.purdue.edu/business/sps/ 3

PRE-AWARD Our service level agreement Pre Award specialists provide the following services in the support of PIs: Review sponsor guidelines, identify key requirements Assist with budget preparation, related documentation and proposal submission forms Prepare required sponsor administrative forms Ensure that all Purdue information included within the proposal is accurate and complete Contact and collaborate with partner institutions to secure all necessary subcontract documentation Assure all regulatory requirements and export control issues are identified Review the final proposal package to ensure all administrative requirements have been met Obtain academic approvals and provide institutional approval for the proposal Complete the final submission package, upload final documents and forms, and submit to the sponsor Proposal Processing Timeline Stages 1 Initial Notification/ Initial Budget Request 2 Final Budget, Justification, and Draft proposal/sow 3 Final Documents for Submission (all but final SOW) 4 FINAL SOW/Project Description/Research Strategy On Time Deadline 3 weeks (15 Business Days) in Advance 1 week (5 Business Days) in Advance 2 Business Days (16 hours) in Advance 1 Business Day (8 hours) in Advance Sponsor Deadlines Outside the Business Day (8:00 a.m. 5:00 p.m.): In the cases where proposals are due outside this timeframe, 5:00 p.m. EST of the day of the deadline should be considered the official submission deadline when calculating the on time criteria. 4

Proposal Processing Timeline Sponsored Program Services Contracting Team Including New Strategic Contracts Group TBD Director SPS Contracting Strategic Contracts Group Industrial Team Gov t/int l/misc Team Office of Legal Counsel Contract Support Drafting Issue Review Consulting Non SPS Core Agreements TBD Lead Analyst Strategic Contracts Group TBD Lead Analyst Strategic Contracts Group Kyle Wargo Team Lead Contract Analyst III Scott Levans Team Lead Contract Analyst III Steve Henry Contract Analyst II Eric Lynch Contract Analyst Deborah Hemme (JD) Contract Analyst Kate Dicken Contract Analyst Nate Bowers Contract Analyst Vacant Contract Analyst Chasity Kuxhausen Operations Coordinator Cathy Nelson Contracting 5

CONTRACTING Negotiate and process all contracts associated with sponsored programs Services include, but are not limited to: Read and review entire contract, including all attachments o Funding Agreements (Federal, State, Industrial/Non profit) o Confidentiality Agreements (NDA s, CDA s) o Material Transfer Agreements (MTA s) o Equipment Transfer/Loan Agreements o Miscellaneous Agreements (MOU, LOI, LOA s, Etc.) Identify terms not matching proposal (project term, deliverables, etc.) Contact Proposal Specialist or PI for clarification/ verification Ensure export control review is complete Identify contractual terms not in compliance with University policy, federal requirements, state requirements, and state and federal law Present redline to sponsor and negotiate POST AWARD Our service level agreement Post Award Research Administrators provide services which include but are not limited to: Award establishment, management, and closeout Administrative and financial assistance for faculty, researchers, and business offices Guidance on sponsor specific guidelines and regulations Invoicing sponsors, drawdown letter of credit and follow up on collections of past due invoices Work with partnering institutions to secure all necessary subcontract documentation Collaborate with other university staff as appropriate Prepare and submit financial and property reports and assist with electronic submission of technical reports Review budgets, cost sharing and related documentation 6

POST AWARD Our service level agreement (continued) Post Award Research Administrators provide oversight and compliance services which include but are not limited to: Assure all regulatory requirements and export control issues are identified and contain appropriate disclosures and approvals Review award document for requirements and highlight key issues for faculty and business offices Facilitate the establishment of agreements with and the payment of subrecipients Work closely with business office staff to ensure all cost share commitments are met POST AWARD Post Award SPS Sponsor Specific Areas NSF/DHHS Other Federal Non Federal Ag Field Office Post Award Business Office Department Specific Areas First Point of Contact: Research Expenditures Human Resources Purchasing Account Numbers (Startup/Discretionary funds) Travel Account Management 7

Intellectual Property 15 What is Intellectual Property? The following types of property are recognized as IP under applicable law: o An Invention and any associated patent application or patent o A Copyrightable Work and any associated copyright or copyright registration o A Trademark and any associated registration o Research Data o Tangible Research Property or other evidence produced in the course of research o A trade secret Intellectual Property that arises in any part in the course of employment or enrollment at the University, or in the course of a work for hire relationship or visiting scholar relationship with the University 8

What is Not Intellectual Property? The University permits authors to retain and manage the copyright to Instructional Copyrightable Works and Scholarly Copyrightable Works, subject to a license in favor of the University The University permits a student to retain title to Intellectual Property that the student creates for (1) credit and (2) without compensation in a University course through the use of (3) course wide resources, provided that the Intellectual Property is not burdened by any pre existing contractual obligation of the University (all 3 must exist) Intellectual Property from research directed and funded under a work for hire contract administered by the University s Sponsored Program Services is not Purdue Intellectual Property Intellectual Property from research performed pursuant to a University contract that expressly exempts the research from the application of this policy is not Purdue Intellectual Property Intellectual Property generated solely in the course of an Outside Activity without the use of University Resources or pre existing Purdue Intellectual Property is not Purdue Intellectual Property Traditional Approach IP and Publications Research IP made by one party belongs to that party (i.e., ownership follows inventorship under US Patent Law) Research IP made jointly by both parties belongs jointly to both parties Each party retains its rights in background IP Each inventor assigns IP to employer Sponsor may receive non exclusive royalty free license ( NERF ) for research purposes Sponsor gets first option to negotiate an exclusive, royalty bearing license on commercially reasonable terms Options are typically time limited; university seeks to find licensee to develop or commercialize and pay patent expenses Researchers free to publish research results researcher must have unfettered publication rights. Copy of publication provided to Sponsor Sponsor given time to review & comment on publication Sponsor may request limited delay for filing patent application 9

Current Trends Sponsor Demands/Impact Demand Sponsors no longer satisfied with a traditional approaches Requesting/insisting that agreements include CNERF NERFs and CNERFs do not generate licensing revenues to university or ensure commercialization of IP Sponsors are asking for specific license terms or pre negotiate the license agreement or assignment Impact Research no longer qualifies as basic research and may instead be considered a private business use May jeopardize university s tax exempt status & cause university to violate tax exempt bond commitments if not managed Non exclusive licenses may impair commercialization of IP because university cannot grant an exclusive license to any third party Certain rights may limit the PI s ability to do follow on projects Novel Approach Some universities are offering Sponsors additional and less restrictive IP rights to encourage high levels of privately sponsored research funding These novel approaches are generally not available for any projects that receive funding from federal grants Leaders in novel approaches o University of Minnesota o University of Arizona o Penn State o Georgia Tech o Iowa State University o University of Oregon o University of Michigan o Purdue University 10

Purdue s Novel Approach Model 1: Basic Fundamental Research offers no assignment rights; Sponsor receives NERF with option to negotiate a royalty bearing license Model 2: Expanding Technologies Model offers no assignment rights; Sponsor receives a five year, royalty free license for an upfront IP fee protects faculty s publication rights Model 3: Work for Hire/Industry Focused Applied Research: Sponsor will own new IP outright once the upfront IP fee is paid protects faculty s publication rights Model 4: Testing Services does not contemplate new IP being created; Sponsor owns data created. No Purdue BIP is included. Sponsor controls publications Industry Sponsored Student Class Projects assigns or licenses IP rights to the Sponsor, but allows students to opt out of these projects to pursue projects that do not force them to give up IP rights IP Fees & F&A Basic Research (model 1) Sponsor receives non exclusive royalty free license (non commercial) IP Fee none F&A Federally Negotiated Rate 55% Expanding Technologies (model 2) Sponsor receives exclusive license for 5 years IP Fee Minimum of 10% or $5,000 F&A Uncapped Rate 64.75% Work for Hire (model 3) IP Assignment to Sponsor IP Fee Minimum of 25% and $10,000 F&A Uncapped Rate 64.75% 11

Net IP Fee Distribution Procedures The University will in its discretion distribute Net Proceeds* on an equitable basis: o 1/3 rd to the department or administrative unit(s) from which the underlying Purdue Contract originated, with due consideration of appropriate requests for sub allocations to particular centers and research units. o 1/3 rd to the Trask Fund to support its research and development programs. o 1/3 rd to the Principal Investigator(s) *25% of the fee retained to covers costs of processing contracts with special IP terms and conditions Current Lifecycle Model Discovery Funding Current IP Decisions Past IP Decisions SPS Pre Award SPS Contracting SPS Post Award (PI Education, Multi Issue Management) OTC Commercialization Business Development Rainmakers Faculty Suresh Garimella OCCGP Tomas Diaz de la Rubia Tom Verhoeven Dan Delaurentis Dan Hasler Deans/Associate Deans for Research Many Others Strategic Alliances/Partnerships o Comprehensive o Enduring o Physical Presence Master Agreements The Queue Basic Research Testing Work for Hire/Expanding Technologies Contracts involving $ coming into Purdue 12

Strategic Partnership Stewardship Model BUSINESS DEVELOPMENT Rainmakers Academic Leads OCCGP Rainmakers Others STRATEGIC CONTRACTING TEAM Deal Team Deal Team Lead Academic Lead Legal Counsel Secondary Alliance Managing Director Pre Award Specialist Post Award Specialist ALLIANCE TEAM Alliance Team Primary Principal Investigator Alliance Managing Director Pre Award Specialist Post Award Specialist Contract Analyst Secondary Deal Team Lead Academic Lead Legal Counsel Questions 26 13