[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 32CFR37.575]



[Page 237]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 37_TECHNOLOGY INVESTMENT AGREEMENTS--Table of Contents

 

                 Subpart E_Pre-Award Business Evaluation

 

Sec.  37.575  What are my responsibilities for determining milestone 

payment amounts?



    (a) If you select the milestone payment method (see Sec.  37.805), 

you must assess the reasonableness of the estimated amount for reaching 

each milestone. This assessment enables you to set the amount of each 

milestone payment to approximate the Federal share of the anticipated 

resource needs for carrying out that phase of the research effort.

    (b) The Federal share at each milestone need not be the same as the 

Federal share of the total project. For example, you might deliberately 

set payment amounts with a larger Federal share for early milestones if 

a project involves a start-up company with limited resources.

    (c) For an expenditure-based TIA, if you have minimum percentages 

that you want the recipient's cost sharing to be at the milestones, you 

should indicate those percentages in the agreement or in separate 

instructions to the post-award administrative agreements officer. That 

will help the administrative agreements officer decide when a project's 

expenditures have fallen too far below the original projections, 

requiring adjustments of future milestone payment amounts (see Sec.  

37.1105(c)).

    (d) For fixed-support TIAs, the milestone payments should be 

associated with the well-defined, observable and verifiable technical 

outcomes (e.g., demonstrations, tests, or data analysis) that you 

establish for the project in accordance with Sec. Sec.  37.305(a) and 

37.560(a).