COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENT CRADA

1
COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENT
(CRADA)

• Dottie Vincent
• Office of Naval Research
• Industrial and Corporate Programs Department
• Code 362
• Arlington, Virginia

2
TECHNOLOGY TRANSFER (T2)
Working Together

• Navy Technology Transfer (T2) is the business of
  transferring technology between the Navy and
  non-Navy organizations.
• T2 can include Spin-off, Dual-use and Spin-on
  activities.
• Two of the major mechanisms employed are the
  licensing of Navy patents and Cooperative
  Research and Development Agreements (CRADAs).
  Licensing takes advantage of mature technologies
  while CRADAs allow for joint research efforts
  with sharing of resources.

3
WHAT IS A CRADA?

• A legal agreement between a federal laboratory
  and a nonfederal partner, i.e., industry,
  academia, state and local government to engage in
  collaborative Research and Development (RD)
• A CRADA defines
• Scope of the cooperative work
• Responsibilities of the parties
• Reporting and process for publication of results
• Intellectual property rights
• Ownership of tangible property
• Limits of liability

4
TECHNOLOGY INNOVATION LEGISLATION

• Stevenson-Wydler Technology Innovation Act of
  1980
• Bayh-Dole Act of 1980
• Small Business Innovation Development Act of 1982
• Cooperative Research Act of 1984
• Federal Technology Act of 1986 (P.L. 99-502)
• Malcolm Baldridge National Quality Improvement
  Act of 1987
• Executive Orders 12591 and 12618 of 1987

5
FEDERAL T2 LEGISLATION AND POLICY

• Title 15 U.S.C. 3710 Utilization of Federal
  Technology
• It is the continuing responsibility of the
  Federal Government to ensure the full use of the
  results of the Nations Federal investment in
  research and development. To this end the Federal
  Government shall strive where appropriate to
  transfer federally owned or originated technology
  to state and local governments and to the private
  sector.
• Title 15 U.S.C. 3710a Cooperative Research and
• Development Agreements
• General authority
• Agreement considerations
• Laboratory mission

6
NAVY POLICY FOR CRADAs

• SECNAV INSTRUCTION 5700.16A dated 7 March 2000
• The Chief of Naval Research serves as oversight
  authority for execution of all Department of Navy
  (DON) domestic T2 science and technology
  matters.
• Delegated authority to all DON laboratories
  and/or technical activities to enter into CRADAs
  provided that
• The following qualifications are met
• Procedures are established for entering into
  CRADAs
• Personnel with training or experience in T2 are
  designated to be responsible for implementing the
  procedures
• A single point of contact for interface with the
  Office of Naval Research (ONR) is sent to ONR
• Personnel responsible for implementing the
  procedures receive at least eight hours of
  training in T2 every year

7
NAVY POLICY FOR CRADAs (CONT.)

• Legal review is obtained prior to entering into
  an agreement
• Reports and executed copies of CRADAs are
  submitted as directed by ONR
• Review is obtained from the U.S. Trade
  Representative and the appropriate Navy Foreign
  Disclosure Official for all CRADAs with entities
  that are directly or indirectly controlled by a
  foreign company or government

8
NAVY STANDARD CRADA (NSCRADA)
9
NAVY STANDARD CRADA (NSCRADA)

• ONR provided a template for DON laboratories
• To be considered Standard
• Specific articles are not modified
• The nonfederal partner is
• a U.S. entity
• not a consortium
• not a venture capitalist
• not directly or indirectly controlled by a
  foreign company or government (FOCI)
• The nonfederal partner does not provide more than
  1,000,000 to the Navy partner over the life of
  the CRADA

10
NAVY STANDARD CRADA (NSCRADA) (CONT.)

• The CRADA duration is three years or less. A
  CRADA may be extended beyond three years by
  amendment with appropriate review
• The CRADA is not used for an agreement with an
  intermediary or technology broker for
  technology transfer or patent licenses

11
CHARACTERISTICS OF A CRADA

• Allows partners to collaborate in mutually
  beneficial RD in a specific technical area
• Competitive process is not required
• Preference given to U.S. companies
• Special consideration to small businesses
• Not procurement contract or grant
• Does not come under Federal Acquisition
  Regulations (FAR)
• Statute requires protection of proprietary
  information

12
CHARACTERISTICS OF A CRADA (CONT.)

• Nonexclusive license to subject invention
• Nonfederal partner receives an option for
  exclusive license in subject inventions
• Nonfederal partner may provide personnel,
  services, facilities, equipment, and funding
• Government partner may provide personnel,
  services, facilities, equipment, but not funding
• Cooperative research must be consistent with the
  mission of the laboratory

13
WHO BENEFITS FROM CRADAs?

• Benefits for Laboratory
• Flexible mechanism for T2
• Leverage RD resources
• Private sector helps laboratory commercialize
  technology
• Laboratory may share in royalties
• Benefits for Nonfederal Partner
• Opportunity to obtain rights to federally funded
  technology
• Access to federal expertise, facilities and
  equipment
• Leveraging resources through team efforts

14
PATHS TO A CRADA

• Laboratory Initiated
• Laboratory has new technology, identifies
  potential partner to transfer and commercialize
  technology
• Potential partner has unique resources that
  laboratory desires
• Industry Initiated
• Business seeks government laboratory with unique
  resources that could successfully demonstrate its
  product for Naval use
• Business seeks federal technology for acquiring
  license and commercializing a product

15
THE CRADA PROCESS

• Step 1 Principal Investigator (PI)
• Develops concept
• Identifies partners and resources
• Initiates discussions
• Contacts Office of Research and Technology
  Applications (ORTA)
• Step 2 ORTA
• Provides CRADA information
• Discusses concept, partners, and resources with
  PI
• Contacts legal department
• Provides administrative services, i.e.,
  creates files, assigns tracking number, etc.

16
THE CRADA PROCESS (CONT.)

• Step 3 Draft NSCRADA
• Define objectives
• Develop Statement of Work
• Time frame
• Funding and payment schedule
• Step 4 Review
• ORTA reviews draft
• Laboratory PI and technical personnel review
• Legal office performs review
• ORTA sends draft CRADA to partner for review

17
THE CRADA PROCESS (CONT.)

• Step 5 Formal Negotiations
• ORTA convenes negotiation team for final
  discussions
• Final draft prepared
• Final review performed
• Step 6 Appropriate Signatures
• ORTA submits CRADA to partner for signature
• ORTA submits CRADA to laboratorys CO for
  signature
• Step 7 Fully executed CRADA
• Funding received by laboratory
• WORK BEGINS!

18
POINTS OF CONTACT
Naval Air Warfare Center Aircraft
Division Patuxent River, MD Nancy Neal Phone
301-342-3353 E-mail nealnj_at_navair.navy.mil L
akehurst, NJ Hans Kohler Phone
732-323-2948 E-mail kohlerhk_at_navair.navy.mil