When research is funded by a private for profit company or industry, the specific written agreement contains terms and conditions of the award that provides the guidance on how to manage and utilize the award funding. These agreements are contracts defined as “exchange transactions having potential commercial benefit or profit that does not support a charitable purpose but instead if for private gain”.
It is preferred that private sponsors use the university’s standard Sponsored Research Agreement (SRA) for Cost Reimbursable awards or Fixed Price awards. When the sponsor’s agreements are used or the parties develop a new agreement that require negotiated key terms, it is important to know that the university, as an agency of the State of Texas agency, has certain constraints regarding the applicability of some contractual terms and conditions.
A Contracts Officer in the Office of Contracts and Grants can assist with the negotiations.