Organizations (both federal and non-federal) outside of NIST may provide funds or services supporting the research, development, or production, or all three phases, of an SRM.  Procedures for work involving other organizations are contained in Subchapter 8.05.

This appendix is intended to provide guidelines specific to SRM work involving other organizations.  Any material produced by work sponsored by another organization is not considered to be a NIST SRM unless agreed to by the Counsel for NIST in advance of work performed and confirmed according to accepted NIST protocols.  Contact the Counsel for NIST if circumstances arise that are not covered by this subchapter or Subchapter 8.05.  Laboratories send copies of SRM agreements involving other organization to MSD for documentation purposes.

The following procedures are delineated by federal versus non-federal government sponsors because of the limitations in returning SRM sales income to non-federal sponsors.

Federal Government Sponsors

In addition to the review process stated in Subchapter 8.05, agreements with federal government sponsors involving the production of SRMs must also be reviewed by the Counsel for NIST and the Budget Division.  Laboratories should provide the Measurement Services Division (MSD) with a copy of approved agreements for informational purposes.

1. Federal government agency provides base material

a. Material produced by another federal government organization outside of NIST may be sold by NIST as a NIST reference material (RM) to ensure its availability when it is defined to be in the public interest or when an alternate means of distribution does not exist.

b. A Memorandum of Understanding (MOU) between NIST and the other federal agency must clearly document:

(1) the purpose of the material,
(2) that the material will be sold by NIST,
(3) the other federal agency’s costs to be recovered in the sales price and returned to the other federal agency upon the sale of the material,
(4) the disposition of units remaining after a need no longer exists or the MOU is terminated,
(5) absolution of NIST for any loss related to the material for any reason, and
(6) a termination date.

c. In addition to the other federal government agency’s costs as directed by the MOU, the sales price should also include NIST’s costs in handling, storing, distributing and other direct costs related to the material.

d. The other federal government agency portion of the sales income collected by NIST through the sale of the material must be returned to the other federal agency.  If the federal government sponsor does not have a mechanism to receive the sales income from NIST, NIST will return the collections to the U.S. Treasury.

2. Federal government agency provides services

a. If a suitable second independent method does not exist at NIST, an outside federal government agency may be selected to collaborate on the certification process with NIST as the certifying body.

b. A Memorandum of Understanding (MOU) between NIST and the other federal government agency must clearly document:

(1) the services to be provided by the other federal agency,
(2) the other federal agency’s cost of those services, and
(3) the mechanism to compensate the other federal agency for providing the services (i.e., a portion of the finished units, funding, nothing).

c. If NIST funds are provided to the other federal agency as payment for the services, the work is performed under a contract and the actual cost of the contract is charged to an SRM Production project and, therefore, included in the NIST UPC component of the material’s sales price.

d. If a portion of the material’s sales income is to be returned to the other federal agency to reimburse it for the services provided, the total UPC for the SRM is set to include the value of the services, and upon the sale of the SRM, this portion of the sales income is returned to the other federal agency on a quarterly basis.

e. If the other federal agency provides services pro bono, the value of the services is recovered in the Other Factors component of the material’s sales prices as donated services.  See Section 5.19.05f and Section 5.19.07b of this subchapter.

f. If a portion of the units will be provided to the other federal agency as compensation for the services provided:

(1) the value of the units may not exceed the value of the services provided by the other federal agency and
(2) the difference between the value of the other federal agency services provided and the value of the units given to the other federal agency, as stated in the MOU, are included in the sales price of the material as Other Factors.

3. Federal government agency provides funding

a. Funds are provided by another federal government agency for an SRM that will primarily meet the need of the other federal agency.

b. Agreement must clearly state:

(1) whether funds are provided for the research, development, or production, or all three phases, of the material,
(2) the amount of funding provided for each phase, which should be sufficient to cover all NIST costs related to the material,
(3) the purpose of the material,
(4) whether NIST will sell the materials produced and if so, the disposition of units remaining after a need no longer exists or the MOU is terminated,
(5) if additional units will exist after fulfilling the obligation to the other federal agency as well as the disposition of those units.  Remaining units may be donated to NIST and in such a case would be placed into NIST inventory and priced using Other Factors (see Section 5.19.05f and Section 5.19.07b of this subchapter), and
(6) a termination date.

c.    If NIST is to sell the material produced, the value of the other federal agency funds used in the production of the material must be recovered through the sales price of the units and the other federal agency portion of the sales income collected by NIST in the sale of the material must be returned to the other federal agency, unless the other federal agency sponsor is authorized to transfer funds to NIST.  NIST does not have legislative authority to transfer other federal government agency funds to the NIST WCF for material production.  Therefore, unless the federal government sponsor is authorized to transfer funds to NIST, the federal government sponsor’s share of the sales income must be returned to the sponsor even if it is the other federal agency’s intent for NIST to continue production of the SRM to ensure its perpetuation.  If the federal government sponsor does not have a mechanism to receive the sales income from NIST, NIST will return the collections to the U.S. Treasury.

Non-Federal Government (NFG) Sponsors

All agreements with NFG sponsors involving SRM work must be reviewed and approved by the Budget Division and the Counsel for NIST in advance of work performed.  Laboratories should provide MSD with a copy of approved agreements for informational purposes.

In situations where NIST and another National Measurement Institute (NMI) choose to provide joint certification on a material, a Memorandum of Understanding (MOU) between NIST and the NMI is the preferred method of documentation and the approvals stated above apply.  The MOU must clearly document the responsibilities of NIST and the NMI, the purpose of the material, the NMI’s estimated cost of its work and materials, the NMI’s costs to be recovered in the NIST sales price, if NIST, the NMI, or both will receive the material, the disposition of units remaining after a need no longer exists or the MOU is terminated, and a termination date.