Bid Decisions on Firm-Fixed Price for Academic Research Contracts Policy

Purpose

The purpose of this policy is to invoke careful analysis and review of firm-fixed price (FFP) opportunities to ensure that the benefits versus risks are favorable for the University of Dayton.  Because the potential financial risk to the University increases with increasing FFP contract, task, or delivery order dollar amount, the FFP analysis and review requirements are tiered according to dollar value (risk).

Scope

This policy is applicable to its college, schools, and departments for bidding on FFP contracts when seeking sponsorship.  This policy specifically excludes UDRI.

Policy History

I. Effective Date:  October 4, 2002

II. Approval:  February 22, 2026

III. History:

  • Approved in its original form:  October 4, 2002

  • Approved as amended:  April 2003

  • Approved as amended:  August 2006

  • Approved as amended:  September 2011

  • Approved as amended:  January 8, 2015

  • Approved as amended:  February 22, 2026

IV. Maintenance of Policy:  Vice President for Academic Research, Office of Academic Research

Policy

The Bid Decisions on Firm-Fixed Price Contracts Policy establishes a framework for the University of Dayton to sensibly approach firm-fixed price (FFP) business opportunities.  The goals are to reduce major financial risk associated with FFP contracting and enhancing the chances of successful performance of research projects.

RESPONSIBILITY FOR ENFORCEMENT, REMEDIES, SANCTIONS

Principal Investigators

Principal Investigators (PI) seeking to submit FFP bids must review the policy and complete all steps required, including consulting with the Office of Academic Research, to determine if the cumulative annual FFP obligations are within limits established by FFP procedures.  Once this has been accomplished, the PI must complete the steps outlined in the procedure for seeking approval to submit FFP bids.

Department Chair

The department chair must seek the necessary approval on behalf of the PI.

Vice President for Academic Research and Vice President for Finance & Administrative Services

The Office of Academic Research or Vice President for Finance & Administrative Services, as appropriate, must approve the FFP bid as outlined in the procedure for approving FFP bids.

Board of Trustees Finance Committee

If the bid exceeds the amount specified in the procedure for seeking approval to submit FFP bids, the Board of Trustees Finance Committee must review and concur with submission of the bid.

Office of Academic Research

The Office of Academic Research is responsible for ensuring compliance with policy by verifying that all requirements of the policy have been followed before a bid can be submitted for an FFP program.

Appeal Process

Exceptions to the cumulative/annual limits must be approved by the Vice President for Academic Research and the Vice President for Finance & Administrative Services.

Reference Documents

  1. Distribution of Indirect Cost Recovery to Academic Units from Sponsored Research Policy 

Applicable Regulations

  1. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards