Standard Contract Terms and Conditions

MIT and OSP have standard policies and objectives when negotiating contract terms; sponsor acceptance of these conditions greatly facilitates the acceptance of awards.

General contract terms and conditions include:

  • Amount and payment
    • MIT cannot undertake research except on a full cost-reimbursement basis
    • Fixed-price relationships are generally not acceptable
    • Payment in advance is requested
    • Payment upon approval of deliverables is not acceptable
  • Budget
    • Research budgets must include full recovery of Facilities and Administrative Costs
    • Minimize rebudgeting limitations
    • Limit sponsor prior-approval requirements
    • Avoid limitations on carryforward from one budget period to the next
  • Key personnel
    • Limit prior approval of changes in personnel to faculty and senior research staff
    • MIT PI should be responsible for the conduct of research activity
    • Individuals in the following roles have PI status at MIT according to Policies and Procedures:
      • Faculty members
      • Senior Research Scientists
      • Senior Research Engineers
      • Senior Research Associates
      • Principal Research Scientists
      • Principal Research Engineers
      • Principal Research Associates
      • Adjunct Professors
      • Professors of the Practice
    • All others must be approved by the Dean or Vice President for Research based on the Department, Lab or Center Head’s recommendation
  • Statement of work
    • Use “reasonable efforts” to perform the Statement of Work
    • Use description of MIT’s Statement of Work, separate from that of collaborators, as attachment to agreement/contract
  • Reporting requirements
    • DLC is responsible for fulfilling (or confirming that PI has fulfilled) all technical and management reporting requirements; therefore, DLC and PI must agree to the technical and management requirements in the award
    • Limit fiscal, property, and invention reporting to an annual basis
  • Publication rights
    • MIT must be free to publish and release results of sponsored activity
    • Allow sponsor review 30 days in advance of publication to identify patentable subject matter and inadvertent disclosure of sponsor’s proprietary information
  • Intellectual property (IP) rights
    • MIT retains title to IP
    • Agreements funded by for-profits commit licensing options to the sponsor
    • Federal awards and subawards provide license rights to the federal government
  • Sponsor proprietary information
    • Sponsor must mark proprietary information provided to MIT
    • MIT must use reasonable efforts to apply the same standard of care to the sponsor’s proprietary data as the Institute applies to its own proprietary data
    • MIT will protect sponsor proprietary information from disclosure for three (3) years from date MIT receives it