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NSF Cost Sharing Policy

Highlights

Since implementation of the NSF cost sharing policy established in 1999, it has not been clear if voluntary cost sharing swayed reviewers. The 1999 policy was reviewed again and NSF approved a revision to the cost sharing policy to stipulate:

  • Cost sharing is now considered an eligibility criterion rather than a review criterion. Cost sharing offered by an organization in excess of the required amount must not be a factor in the review of a proposal and program officers must instruct reviewers not to use cost sharing as a factor in their evaluation.
     
  • NSF requires only statutory cost sharing for unsolicited research projects.
     
  • Any negotiation with proposals as to the level or amount of NSF required cost sharing will occur either prior to the review process to establish the project’s eligibility for consideration or after merit review has been completed to adjust cost sharing to the agreed-upon dollar amount in the award.
     
  • NSF program officers must follow the current guidance which states that they may discuss with PIs the “bottom line” award amount, but may not (re)negotiate or impose other institutional commitments.
     
  • Major Change: In budget negotiations, any reduction of 10% or more should be accompanied by a corresponding reduction in the scope of the project, unless the Program Officer, PI and institution clearly agree that the project as proposed can be carried out at a lesser level of support from NSF with no expectation of any uncompensated institutional contribution beyond that formally reflected as cost sharing.
     

These new revisions to the current policy strengthened the review process for solicitations that require cost sharing.

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