OSU PaCS 304-08: Funding Sources & Implications

Purpose

To ensure Oregon State University complies with State and Federal guidelines and requirements regarding construction project funding.

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Applicability

All campus construction and all procurements for construction materials or services.

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Background Information

1. Projects are funded by a variety of funding sources and there are different requirements associated with spending and accounting for the different sources:
   

1. Education and General Funds,
2. Gifts,
3. Grants or Contracts, and
4. Student Fees
5. State of Oregon bonds

2. There are two types of costs associated with Federal grant or contract funds; direct and Facilities and Administrative (F&A) costs (formerly “indirect costs”). 

• Direct costs are expenditures associated with grants, contracts, and cooperative agreements that are necessary for and can be identified with the performance of a specific sponsored project.
• Facilities and Administrative (F&A) costs are expenditures associated with a grant, contract, or cooperative agreement that cannot be directly charged to nor specifically identified with individual sponsored projects.  These costs include maintenance of physical facilities, library services, administrative services, and departmental administration.

3. Construction projects funded by Federal grant funds may have specific requirements for: payment of wages to construction workers, specific approvals required by the funding agency for hiring of consultants or execution of construction contracts, etc.
4. Projects funded by State of Oregon bonds can have limitations on the amount of private research that can be conducted in those facilities. 

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Policy

PaCS must be informed of (1) the funding source if Federal funds are part of the project funding, and (2) any specific requirements of the grant conditions that may affect procurement procedures, terms or conditions.

Prior to choosing State bonding as the method for financing a new facility, discussion should occur with the Director of Business Services, Facilities Services Planning and the Vice President for Research.

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Additional Information

Refer to the Budget Department Policies & Procedures for further information.

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