Are MTEC members permitted to collaborate (subcontract) with non-US companies?
MTEC members may collaborate (subcontract) with both US and non-US companies.
However, per Department of Commerce review, the following countries are noted to have been involved in either unstable government, civil war, ongoing intense crime or violence, or frequent terrorist attacks. MTEC members seeking to collaborate with companies operating from the following countries* will be subject to additional due diligence with the Defense Security Service. Warnings will remain in place until the situation changes.
- North Korea
* and other countries with similar situations or conditions.
Joining the Consortium
How much are the membership dues?
What do the Annual Dues and the Project Award Assessment pay for?
Annual Dues and project award assessments pay for consortium activities, such as but not limited to consortium support, meeting costs and support, member application processing, membership management (“good standing” tracking, etc.), executing and managing the MTEC financial processes, dues and assessment invoicing and collection, communications efforts, business development and strategic planning efforts, maintaining public and private websites, and supporting any other subcontractors.
Our division of a larger parent organization is interested in joining the MTEC. If another division of our organization is interested in joining the MTEC, will they have the opportunity to join under their division? Overall, if additional divisions should join after us, will the membership listing specify multiple divisions of our organization?
Regardless of the number of affiliates, an MTEC Member Organization with one or more affiliates participating in the MTEC is considered to be one (1) MTEC Member Organization for the purposes of voting, and committee representation. It is left up to the parent organization to determine how MTEC representation will occur. Affiliate means, with respect to a specified Member that is a signatory to the MTEC Consortium Member Agreement, any corporation, company, partnership, joint venture and/or firm which now or hereafter controls, is controlled by or is under common control of such specified Member. For purposes of this definition, “control” shall mean (i) in the case of corporate entities, direct or indirect ownership of at least 50% of the stock or shares entitled to vote for the election of directors; and (ii) in the case of non-corporate entities, direct or indirect ownership of at least 50% of the equity interest with the power to direct the management and policies of such non-corporate entities.
How can my company discern if it is a Non-Traditional Defense Contractor?
The current definition of a nontraditional defense contractor is the following: “A nontraditional defense contractor means an entity that is not currently performing and has not performed, for at least one-year prior to the date of application, any contract or subcontract for the Department of Defense that is subject to full coverage under the cost accounting standards (CAS) prescribed pursuant to section 1502 of title 41 and the regulations implementing such section.” The simplest way to determine the above condition is to verify with your organization’s Contracting or Accounting department.
Is being a Non-Traditional Defense Contractor a requirement to join the consortium?
No, membership is open to all U.S. companies and universities which are capable of making a technical contribution to the advancement of medical technologies. However, MTEC research project awards will require non-traditional defense contractor participation to avoid incurring a 1/3 cost share requirement on each proposed effort where there is no non-traditional defense contractor participation. Non-traditional defense contractors can participate on an MTEC awarded research project in any of the following capacities:
• prime level
• team members
• lower tier vendors
• “intra-company” business units provided the business unit makes a significant contribution to the prototype initiative (i.e., is a key participant).
What is an Other Transaction Agreement (OTA)?
This model is a streamlined way for the government to obtain new technology solutions from industry and academia. OT-based collaborations are not subject to some of the regulations that apply to Federal Acquisition Regulation (FAR)-based acquisitions. To learn more about OTAs, click HERE.
Will there be solicitations that enable fundamental research institutions the ability to publish MTEC sponsored research results?
The following is excerpted from Article 12.3, Publication and Academic Rights of the MTEC Base Agreement, which incorporates the government OTA terms and conditions:
Approval of the Agreements Officer is not required prior to the release of information received in the performance of a Research Project Award or developed pursuant to a Subaward if the a Research Project Award or Subaward is awarded to a college, university or laboratory and the research work is performed on campus, except that such approval shall be obtained prior to the release of information where there is a high likelihood of disclosing performance characteristics of military systems or information concerning manufacturing technologies unique and critical to defense.
At this point, we do not foresee research efforts containing characteristics of military systems, or other critical to defense information. Therefore, MTEC has no concerns regarding publications.
Will the Board have access to my organization’s IP?
The Board of Directors will not have access to an organization’s Intellectual Property. IP assertions should be submitted during the proposal stage, and IP rights will be negotiated by the Member Company, its partners in the project (if any), and later by the Government upon selection and award of a project. The MTEC staff can provide access to IP attorneys to assist member companies in this process.
Will the Board of Directors have access to my company’s proposals?
The MTEC Board of Directors will not have access to any MTEC member proposals, and will have no involvement with any source selection activities undertaken by the government or the MTEC staff. Any MTEC staff member(s) who may participate in source selection activities must first execute a non-disclosure agreement that he/she will safeguard all information contained in the proposal(s) being reviewed.