MDA CRADA Opportunity
Partnering Agreements
CRADA (15 U.S. Code section 3710a)
- Parties: Federal laboratory and any other entity including other Federal activities.
- Effect: CRADA allows exchange of personnel, property and intellectual property between government and educational or private entity. Data developed by the government can be protected from release. Provides commercial exposure for technology.
- Advantages: Low cost; CRADA allows shared resources between government and private industry. Federal Acquisition Regulation (FAR) and Defense Federal Acquisition Regulation Supplement (DFARS) do not apply. Government may receive funds.
- Other Considerations: No funding can be provided by the government. Must have cooperative elements. May have problems if CRADA exists for non-dual use technology. Does not overcome necessary funding for contingencies.
- Authorized Signatories: Laboratory
Cooperative Agreement (10 U.S. Code section 2358, 31 U.S. Code section 6305, Department of Defense Grant and Agreement Regulations (DoDGARs)
- Parties: Laboratory and non-Federal entity, other Federal entities may be involved
- Effect: Principal purpose is to transfer something of value to carry out a public purpose of support authorized by a United States law, and the transaction requires substantial laboratory involvement.
- Advantages: Encourages basic and advanced research in areas of interest. Allows some supervision.
- Other Considerations: Government involvement and control is substantial. Must help fulfill agency's goals. Funding must be for support and stimulation or be authorized by statute. Primary purpose has no direct Federal Government benefit.
- Authorized Signatories: Contracting shop with agreements officer
Other Transactions (10 U.S. Code section 2371)
- Parties: Laboratory and non-Federal entity; other Federal entities may be involved.
- Effect: Purpose is to provide a flexible method that doesn't fit into a contract, grant or cooperative agreement. Well suited for consortium oversight. Intended for dual use products and technology.
- Advantages:Very flexible. Can be used to avoid the imposition of Government accounting on partners. Government may receive funds.
- Other Considerations:Cannot be used if standard grants or contracts are available. Must explain special needs. Can only use for R&D. Cannot transfer IP rights.
- Authorized Signatories: Contracting shop with agreements officer.
Other Transactions for Prototyping (10 U.S. Code Section 2371b)
- Parties: Laboratory and non-Federal entity; other Federal entities may be involved
- Effect: Purpose is to provide a flexible method that doesn't fit into a contract, grant or cooperative agreement. Well suited for consortium oversight. Intended for military products and technology.
- Advantages: Very flexible. Can be used to avoid the imposition of Government accounting on partners. Government may receive funds.
- Other Considerations: Cannot be used if standard grants or contracts are available. Non-traditional contractor, cost matching or innovative agreement required. Competitive award for procurements unless justified.
- Authorized Signatories: High level. Must be delegated.
Center of Industrial and Technical Excellence Agreements (10 U.S. Code Section 2474). Activity must obtain approval from the Agency Secretary.
- Parties: Military depot-level activity and private industry or non-DoD entities
- Effect: Allows long term joint utilization of under-utilized facilities and equipment at a designated center.
- Advantages:Depot can lease space or equipment. Depot can receive funds but cannot provide funds. Can establish public-private partnerships to perform work related to core competencies. No requirement concerning lack of commercial competition.
- Other Considerations: No IP terms. Nature of work must be within core competency of center. Liability similar to Work for Private Parties (WFPP).
- Authorized Signatories: Delegated by Secretary of Navy (delegation letter should indicate)
Education Partnerships (10 U.S. Code Section 2194)
- Parties: Defense laboratory and educational institution
- Effect: Allows use of institutional faculty and students in laboratory projects, instruction by laboratory personnel, provision of career and academic advice to students, loan of laboratory equipment to institution, and transfer of surplus equipment.
- Advantages: Can use graduate students from educational institution for laboratory projects. Aids the institutions and DoD in attracting qualified students and future employees. Allows easy path for donation of center equipment.
- Other Considerations: Partnership must be for the purpose of encouraging and enhancing study in the scientific disciplines. Other party must be a non-profit educational institution.
- Authorized Signatories: Laboratory
Memorandum of Understanding (MOU) (10 U.S. Code Section 2350a)
- Parties: Defense laboratory and allied foreign government
- Effect: Allows a cooperative research and development program between a laboratory and a North Atlantic Treaty Organization or allied foreign country for the purpose of improving conventional defense capabilities.
- Advantages: Allows establishment of cooperative research between nations.
- Other Considerations: MOU must be rigidly monitored to avoid violation of treaties with other countries. Requires high level approval.
- Authorized Signatories: Secretary of Defense (limited ability to delegate)
MOU or Memorandum of Agreement (MOA)
- Parties: Lab and another government agency
- Effect: Formalized agreement between two Federal agencies.
- Advantages:Allows agencies to share resources in areas where they have a common interest.
- Other Considerations: Not enforceable in court. Merely a formalization of mutual interest.
- Authorized Signatories: Authorized laboratory representative and authorized party from other entity
Intergovernmental Personnel Assignment (5 U.S. Code Section 3371-3376)
- Parties: Laboratory and Federal, State or local government or a qualified non-profit entity
- Effect: Allows the laboratory or the governmental unit to transfer employees to work on projects or allow state government employees to be assigned to a laboratory.
- Advantages: Increases agency flexibility in cooperation with educational institutions and qualified non-profit entity.
- Authorized Signatories: Human resources office director with Commanding Officer's approval
Non-Partnering Agreements
Contract (31 U.S. Code Section 6303, FAR, DFARS)
- Parties: Laboratory and non-Federal entity.
- Effect: Principle purpose of the instrument is to acquire goods or services for the laboratory.
- Advantages: Closely fulfills needs in carrying out mission.
- Other Considerations: FAR and DFARS control formation and performance. Competition in Contracting Act applies.
- Authorized Signatories: Contracting officer and other party.
WFPP/WFNE (Goods & Services) (10 U.S. Code Section 2563)
- Parties: Working capital funded activity and private party
- Effect: The laboratory can provide its unique services or equipment in the marketplace when excess resources are available.
- Advantages: Allows laboratory to receive payments from a commercial entity to perform work for that entity.
- Other Considerations: This transaction requires legal review. Commercial competition is prohibited. Requires risk analysis. No IP rights are shared/granted.
- Authorized Signatories: Authorized representative of Defense Working Capital funded activity.
WFPP/WFNE (10 U.S. Code Section 2539b, Samples, Drawings, Information, Equipment, Materials, and Certain Services)
- Parties: Laboratories, research centers, ranges, or other testing facilities and private party
- Effect: The laboratory can provide its unique equipment and facilities for use in the marketplace when excess resources are available. Allows commercial entities to use laboratory facilities.
- Advantages:Allows laboratory to receive payments from a commercial entity (e.g., sell samples) to perform work for that entity.
- Other Considerations:Available for items and services not readily available from the private sector. Wider availability than 10 U.S. Code Section 2563. Government entity must be uniquely qualified. Private party must indemnify the Government.
- Authorized Signatories: Commanding Officer of Defense Working Capital funded activity.
Range Test Agreement (10 U.S. Code Section 2681)
- Parties: DoD and commercial entity.
- Effect: Services of a major range and test facility may be provided. Facility must be designated as such by DoD.
- Advantages:Cost reimbursement of direct costs is authorized to the appropriation accounts incurring the costs. Appropriate indirect costs can also be billed. Specific required construction can be a cost.
- Other Considerations: Testing must be at the designated facility. Contract is terminable upon writing with specified determinations. Must have indemnification. Non-competition is not required when work is being performed for a Government end-user.
- Authorized Signatories: Commanding Officer.
Economy Act Order (31 U.S. Code Section 1535) Military Interdepartmental Procurement Request has same terms
- Parties: Two governmental units
- Effect: Laboratory can order goods and services from or provide goods and services to another government agency.
- Advantages:Allows use/sale of resources from another agency if advantageous.
- Other Considerations: Must be cheaper than privately available. Cannot use to circumvent FAR, DFARs without high level approval.
- Authorized Signatories: Authorized agency or laboratory representative.
Incoming Bailment or No Cost Contract (FAR, DFARS)
- Parties: Laboratory and non-Federal entity
- Effect: Temporary transfer property from the non-Federal entity to the Government.
- Advantages: No cost; however, contingencies must be covered by available funding.
- Other Considerations: Potential unfunded liability if transferred item is lost. Replacement funding must be available. FAR and DFARS control formation and performance.
- Authorized Signatories: Contracting officer and other party.
Outgoing Bailment Agreement2 (10 U.S. Code Seaction 2539b)
- Parties: Laboratory and non-Federal entity
- Effect: Temporary transfer of property from the laboratory to the non-Federal entity.
- Advantages: Can charge fees.
- Other Considerations: Not all laboratories have authority to do all parts of 10 U.S. Code Section 2539b.
- Authorized Signatories: Authorized laboratory representative and authorized other party representative.
Non-disclosure Agreement (NDA) (Contractually Binding)
- Parties: Federal Government and non-Federal entity.
- Effect: Permits the parties to exchange information free from risk of public disclosure.
- Advantages: Non-public information is protected. NDA can lead to further collaboration under a separate agreement.
- Other Considerations: Individuals cannot sign on behalf of the Government.
- Authorized Signatories: Authorized Government representative and authorized other party representative.
1. Software evaluations can be done through a bailment agreement or a Limited Purpose CRADA. Consultation with local counsel is essential.
Patent License Agreement (35 U.S. Code Section 207-211)
- Parties:DON and private party
- Effect:Inventions may be licensed to private parties under certain circumstances. See SECNAVINST 5870.2E and 5700.17A
- Advantages: Transfer DON inventions for commercial purposes. Royalty payments for inventors, laboratories/technical activities.
- Other Considerations:DON laboratory and/or technical activity must be designated per SECNAVINST 5700.17A
- Authorized Signatories: The head of designated DON laboratory and/or technical activity
Software License Agreement (10 U.S. Code Section 2514 note (2016) (Enhanced Transfer of Technology Developed at Department of Defense Laboratories))
- Parties: DON and private party
DON laboratory and/or technical activity must be designated per SECNAVINST 5700.17A or by direct delegation from the CNR. To be delegated to the head of designated DON laboratory and/or technical activity
Original content courtesy of Naval Undersea Warfare Center, Division Newport, modified for this handbook.
