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* FC = Full Costs/ FF= Full costs Fixed rate/AC= Additional Costs/ UF =
User Fee. For more information, see Box 7.
1 Direct costs, excluding subcontracting costs
2 Up to maximum of €22,500
3 For subsidies, see the Vademecum on grant management and com pv(98) 1395
4 Organisation costs (see specific Guide for Proposers Part 2)
5 Overhead is calculated as a lump sum of the personnel costs (not exceeding 80%).
6 The eligible cost categories for each of the types of technology take-up measures are referred to in the relevant Guide for Proposers, Part 2
7 Two alternative contracts are available respectively to the R&D and the
Demonstration. One is the “Deliverables”, by which the contribution is paid in pre-set amounts and adjusted with the final payment on the basis of actual costs for the whole contract. The other is the “flat rate” (for projects estimated less than 100 000 euro) by which the contribution consists of a fixed amount based on the estimated costs for the work.

Box 7 - Methods for the calculation of EC funding

Full cost (FC)
The participant can identify all the direct and indirect costs related to the project. He should be able to demonstrate that his accounting system enables the identification of those costs with sufficient precision. FC = total direct costs + actual overhead rate.
Full costs Flat rate (FF)
The participant who may participate on a full costs basis or who can identify his direct costs related to the project (temporary and permanent staff) but not the indirect costs linked to the project may elect the overhead to be charged on a flat rate basis, 80 % of the direct personnel cost.
Additional cost (AC) - in R&D projects
Subject to the specific contract terms, the Commission shall only take into account the project’s additional (non recurrent) costs. AC = total direct additional costs + x% overhead on direct costs (excluding subcontracting)
(for x% see Box 6).
Additional cost (AC) - in Concerted Actions/Thematic networks and
Euroconferences
The Community funding shall only cover the direct costs necessary for the action, however, costs for permanent staff are eligible if time records are kept. AC = total direct additional costs + x% overhead on direct costs
(excluding subcontracting) (for x% see Box 6).
User Fee (UF)
This system is only used in the context of projects providing access to research infrastructure. It is based on a "unit cost", which is a fixed composite rate, for each access. Travel and subsistence costs and a flat rate contribution for general expenses are added. The participant should be able to demonstrate that his accounting system enables him to calculate with sufficient precision the "unit cost". UF = ((unit cost x quantity of access) + travel and subsistence costs) + 20% overhead.
Costs categories
A cost shall be considered as eligible only where it is necessary for and during the project and is provided for in the contract. It shall be reimbursed if the amount has actually been spent and recorded in the accounts. No profit may be included.
Personnel costs: subject to the contract terms, scientific and technical personnel; time devoted to the project shall be recorded.
Durable equipment: subject to the contract terms, equipment shall be reimbursed according to a depreciation period (for computer equipment that cost less than 25.000 Euro the depreciation period is 36 months, for all other equipment the depreciation period is 60 months) and its use on the project; equipment leased shall be reimbursed without exceeding the eligible cost if it were to be purchased.
Subcontracting: external services.
Travel and subsistence: travel outside the European Union or an

Associated State needs the prior approval of the

Commission, except for visiting a participant.
Consumables: only project specific items.
Computing: only project specific items.
Protection of knowledge: subject to contract terms, only with prior approval of the Commission
Other specific costs any cost necessary for the project, not falling within a defined category and having received the prior approval of the Commission
Co-ordination costs: costs for the financial/administrative administration (personnel, travel and all other cost categories apart from subcontracting) incurred only by the co-ordinator - the financial/administrative co-ordinator in case of split between scientific and administrative co- ordinator - in order to fulfil his tasks.
Access: only for Support for access to research infrastructure; user fee related to visiting scientist.
RTD performer only for SME co-operative research project; cost of research performed by a non-participant.
Overheads: subject to the contract terms, either an actual rate (FC), or a flat rate (FF) calculated on personnel costs or on the direct additional costs (AC) excluding subcontracting, or as a lump sum of personnel costs (Accompanying Measures).

BOX 8 - Intellectual Property Rights

The following table lists the access rights (license on a patent, other users rights) to knowledge (intellectual property created during the project) and know-how (pre-existing intellectual property) as a function of the different types of actions and participants.

(*) Access rights to knowledge for the purpose of use are limited to knowledge generated under the project concerned.
(1) Contractors and Assistant Contractors unable to exploit their own knowledge might grant access rights at reasonable financial or similar conditions, instead of royalty-free.
(2) More favourable conditions when beneficiary requests access from its principal contractor or the other assistant contractors of the latter.
(3) SME Contractors are the owners of all knowledge resulting from the research work carried out by the RTD performers.

Box 9 - Key recommendations

V Eligible partners: Check first that you and your partners are eligible for participation in the Programme (for example: your organisation must have a registered legal existence, there are minimum consortium conditions etc.) and also that you are eligible for the particular activity involved (some activities may be reserved e.g. for SMEs, organisations in particular sectors of industry….etc.)

V Specific actions and RTD objectives: Check that your proposed work does indeed address an activity included in the current Call. Ineligible proposals, or proposals not addressing activities open in the Call, will be excluded from evaluation.

V Selection criteria: Any proposal evaluated below the thresholds will not be considered for funding.

V Management: Clearly indicate ability for high quality management adapted to the size of the project.

V Content: Good proposals show consistency with the five selection criteria.

V Ethical issues: Clearly describe any potential ethical aspects and applicable regulatory aspects of the research to be carried out and the way they are dealt with according to national regulations.

V Presentation: Good proposals are drafted in a clear and easily understandable way. Good proposals are precise and concise, not “wordy” - evaluators judge on content, not on number of pages.

V Results: Good proposals clearly show the results that will be achieved, and how the participants intend to diffuse or exploit these results.

V Completeness: Proposals must be complete, as they are evaluated only on the basis of the written material submitted. Follow the format of the

Proposal Submission Form. You are highly recommended to use the ProTool software supplied free of charge by the Commission to proposers.

V Partnership: Partners should discuss and agree beforehand their respective roles and responsibilities.

V Contract: Check that the model contract conditions for the type of work that you are proposing are acceptable for your organisations.

V Competition: There will be competition, and a weak element in an otherwise good proposal might make it lose out to others. Therefore edit your proposal tightly, strengthen or eliminate weak elements.

Last but not least:
Arrange for your draft proposal to be evaluated by experienced colleagues before sending it, using the evaluation criteria described in the
Evaluation Manual and in Appendix 6 (PART 2). Use their advice to improve it before submission.

Notes – PART 1

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[i] On the 22/12/98, the Council also decided on the Fifth Euratom
Framework Programme for research and training (CORDIS : http://www.cordis.lu/fp5/src/decisions.htm)
The specificity of the latter will be described in a separate information document.
[ii] It will also carry out research and development activities conducted by the Joint Research Centre
[iii] In the Decisions adopting the Specific Programmes, there can be no derogation from the financial participation rates set out here, with the exception of duly justified special cases
[iv][v] The rates may need to be adjusted in individual cases to comply with the Community framework for State aid for R&D (O.J. C 45, 17.2.1996) and with article 8 of the WTO Agreement on subsidies and countervailing measures (O.J. L 336, 23.12.1994). If the project is supported financially by a Member State or one of its public bodies, the cumulation rule applies, according to item 5.12 of the above mentioned Community framework.
[vi] In the special case of legal entities which do not keep analytical accounts, the additional eligible costs generated as a result of the research will be financed at the rate of 100 %
[vii] EC funding up to maximum of ¬ 22,500
[viii] In the case of industrial host fellowships, this will normally approximate to 50 % of the total eligible costs
[ix] Mored detailed informa of €22,500
[x] In the case of industrial host fellowships, this will normally approximate to 50 % of the total eligible costs
[xi] Mored detailed information on this area are given in an explanatory note, available from CORDIS at : http://www.cordis.lu/life/calls/199902.htm#refdocs
[xii] The implementation modality “Support for access to research infrastructure” should not be confused with “Support for research infrastructures”, which is part of the programme and supports various actions. The action “Support for access to research infrastructures” is supported by the horizontal programme “Improving human potential”.
[xiii] European Parliament and Council Decision N° 1999/182/EC of 22
December 1998 concerning the Fifth Framework Programme of the European
Community for research, technological development and demonstration activities (1998-2002)
[xiv] Council Decision 1999/65/EC of 22 December 1998 concerning the rules for the participation of undertakings, research centres and universities and for the dissemination of research results for the implementation of the
Fifth Framework Programme of the European Community (1998-2002)
[xv] Council Decisions on the specific programmes, Commission Regulation implementing the Council Decision 1999/65/EC concerning the rules of participation, Work Programmes of the specific programmes, model contracts,
Evaluation Manual, …
[xvi] See the Work Programme of the Specific Programme “Confirming the international role of Community research” and its corresponding Guide for
Proposers.
[xvii] Such calls are based on Community need to support certain of its policies (standardisation, anti-fraud actions…)
[xviii] See Vademecum on grant management and the rules for public procurement
[xix] Experts shall be selected following a Call for candidates. However, in exceptional cases, the evaluation process may be conducted without them.
The Commission's services shall however follow the rules set out in the
Evaluation Manual.
[xx] These include human resources, infrastructure, financial resources and, where appropriate, intangible property.
[xxi] In certain exceptional cases by paying a fixed lump sum.
[xxii] Anywhere where it is possible for easy reading, the word
“contractor” may be used.
[xxiii] Specific rules related to their participation in this type of action can be found in the ad hoc information brochure devoted to SMEs.
[xxiv] A single contractor is possible in the case of Concerted Actions,
Thematic and Training Networks
[xxv] A single contractor is possible in the case of Concerted Actions,
Thematic and Training Network Actions, where he carries out the co- ordinator role.
[xxvi] This role may in exceptional cases be carried by two contractors, with one responsible for the scientific co-ordination, and the other responsible for financial matters (e.g.: if the scientific co-ordinator is unable to receive Community funding due to his status, his location, his uncertain financial standing, or because he is unable to distribute funds to participants in due time).

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QUALITY OF LIFE AND

MANAGEMENT OF LIVING RESOURCES

THE FIFTH FRAMEWORK PROGRAMME

1998-2002

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