This policy addresses fixed price agreements between George Mason University (the University) and external sponsors.
II. POLICY STATEMENT
The purpose of this policy is to define the administration and closeout of fixed price agreements.
Fixed price agreements have a degree of risk as deliverables must be met even if costs incurred exceed the funded amount. The Principal Investigator (PI) and their academic unit are responsible for covering any costs incurred in excess of the funded amount. If the funding exceeds the costs incurred, the residual balance will be transferred to the PI pool org (account) after the appropriate overhead charge has been assessed.
Fixed Price Agreement: Funding mechanism used to support an activity at a fixed funding level in exchange for deliverables outlined in the agreement.
Pool Org: Org (account) established for residual funds of fixed price agreements to be used in support of university research activities.
Principal Investigator (PI): The primary individual in charge of a research grant, cooperative agreement, training or public service project, contract, or other sponsored project.
Residual Balance: Funds remaining after all charges incurred to complete project deliverables have been posted to the sponsored project fund.
Office of Sponsored Programs (OSP): OSP negotiates and signs fixed price agreements on behalf of the University. OSP is responsible for the closeout of fixed price agreements and works closely with the PI to ensure all expenses have been charged prior to closeout and transfer of residual funds.
Principal Investigator (PI): The PI is responsible for completing project deliverables associated with the fixed price agreement and reviewing the project fund to ensure all direct costs have been charged appropriately. Funds transferred to the PI pool org are to be used in support of research and consistent with University policies.
All fixed price agreements with an end date on or after July 1, 2009 will be covered under this policy.
VI. EFFECTIVE DATE AND APPROVAL
The policies herein are effective July 1, 2009. This policy shall be reviewed and revised, if necessary, annually to become effective at the beginning of the University’s fiscal year, unless otherwise noted.
Carol D. Kissal
Senior Vice President, Administration and Finance
Mark R. Ginsberg
Provost and Executive Vice President
Date approved: April 15, 2009
Revised: February 5, 2013
Date of most recent review: May 18, 2021