------- Forwarded Message Follows -------
Date:          Mon, 22 Jan 1996 10:20:56 -0500
Reply-to:      xxxxxx@nsf.gov
From:          xxxxxx@nsf.gov
To:            Multiple recipients of list <xxxxxx@nsf.gov>
Subject:       Dear Colleague & Imp. Notice 119 - Partial Gov't Shutdown

 NATIONAL SCIENCE FOUNDATION
 Office of the Director
 ARLINGTON, VA  22230

 January 19, 1996

 Dear Colleague:

 The National Science Foundation is now emerging from the longest work
 stoppage in its history, almost four weeks resulting from the partial
 shutdown of the Federal government for three weeks and the blizzard that
 followed immediately thereafter.  During the shutdown, NSF's allowable
 activities were strictly circumscribed.  No proposals were logged into our
 systems; program officers neither sent requests for nor received reviews;
 review panels did not meet; and we were unable to obligate funds for
 new or continuing awards.  We were able, thanks to an OMB decision
 made after the shutdown began, to process requests for funding to
 existing awards that were based on prior obligations.

 Because the time period of the shutdown occurred during semester
 breaks for many academic institutions, NSF's shutdown may have had
 little apparent impact.  The attached Important Notice 96-01 describes
 some of the impact we expect our partnering institutions to experience
 within the next six to nine months.  The Important Notice covers
 effects of the shutdown itself as well as the uncertainties related to
 operating for almost one-third of Fiscal Year 1996 on successive
 continuing resolutions.  We still have no Fiscal Year 1996
 appropriation, and cannot at this point guess when we might have one.

 The combined effects of the extended shutdown and the uncertainty about
 our Fiscal Year 1996 budget are severe.  We have only a prorated
 portion of our estimated Fiscal Year 1996 funds available to us, which
 limits our ability to meet commitments in a timely way.  Planning for
 this year and next has been complicated by the budget unknowns.

 In all of this, NSF staff are committed to minimizing the damage to
 science and engineering and permitting the researchers and educators
 we support to continue with their work uninterrupted.  But however
 heroic staff efforts may be, NSF cannot conduct business as usual.
 The time period we have lost is one that is critical to the smooth
 functioning of the proposal review process, and we can expect delays
 in award actions.  Some continuing awards have already experienced a
 brief funding hiatus due to the shutdown.

 We are confident that we will have your cooperation in coping with
 this unusual situation.  To that end, we will keep you apprised of our
 planning as the situation evolves.  We thank you in advance for your
 patience and understanding.  Please communicate this information to
 interested faculty and staff.

 Sincerely,

 Neal Lane                Anne C. Petersen
 Director                 Deputy Director

 NATIONAL SCIENCE FOUNDATION
 Office of the Director
 ARLINGTON, VA  22230

 Notice No. 119                                    January 19, 1996

 IMPORTANT NOTICE TO
 PRESIDENTS OF UNIVERSITIES AND COLLEGES
 AND HEADS OF OTHER NATIONAL SCIENCE FOUNDATION
 GRANTEE ORGANIZATIONS

 Subject:  Impact of partial government shutdowns and short-term
 continuing resolutions on NSF operations.

 Since the beginning of FY 1996 on October 1, 1995, NSF has operated
 without an appropriation on a series of short-term continuing
 resolutions.  Moreover, the agency has experienced two periods of
 shutdown totalling almost four weeks during which we had no funds
 available either for funding awards or to pay NSF staff to perform
 their work.  This has led to canceled panel meetings and workshops,
 proposals piling up in our mail room, and delays in meeting our FY
 1996 commitments.  We now operate under a continuing resolution
 effective only through January 26, 1996.

 Because the time period of the most recent shutdown occurred during
 semester breaks for many academic institutions, the hiatus in NSF
 activity may have had minimal apparent impact to date.  This Important
 Notice covers effects of the shutdown itself as well as the related
 uncertainties surrounding operating for almost one-third of Fiscal
 Year 1996 on successive continuing resolutions.

 In addressing this situation, NSF staff are committed to minimizing
 the damage to science and engineering and permitting the researchers
 and educators we support to continue their work with as little
 interruption as possible.  But it will be impossible to mitigate all
 impacts of the shutdown and the limited, prorated funding available
 through short-term continuing resolutions.  The time period we have
 lost is one that is critical to the smooth functioning of the proposal
 review process.

 Partial Government Shutdown

 Immediate Impact on NSF and NSF Customer Services

 - More than 2500 proposals have accumulated in the mail room since
 December 15.  We expect all proposals received by January 5 to be in
 the program offices by the end of January, with the remainder of the
 backlog in the program offices by mid-February.
 - NSF has received almost 40,000 pieces of mail since December 15.
 This will reach program and administrative offices over the next two
 weeks.
 - 17 review panels and related meetings affecting about 400 people did
 not take place because of the most recent shutdown.  Another 26 panels
 and meetings scheduled during the rest of January may be cancelled or
 postponed where preparations cannot be completed in a timely way.
 - 156 continuing increments came due on December 31, 1995, with
 another 266 coming due during January.  We will attempt to process as
 many of these increments as possible by January 26, when we again face
 the possibility of a shutdown.
 - There are approximately 1500 pending requests for NSF forms and
 publications.  We expect to eliminate this backlog by the end of
 January.  This means NSF will not be able to meet its customer service
 standard for processing information requests in two days for these
 requests or others we receive in the immediate future.  Those needing
 forms and publications are urged to obtain them electronically via the
 World Wide Web (http://www.nsf.gov:80/bfa/cpo/forms/start.htm) or
 STIS.

 Intermediate and Long-Term Impacts on NSF and the Science and
 Engineering Community

 - Delayed receipt of proposals in the programs and/or delayed panels
 means delays in funding decisions.  NSF may not be able to honor
 requested start dates.  It will not be possible to meet our customer
 service standard to process proposals in six months.  There may be
 gaps in funding for successful renewal proposals.
 - NSF may experiment with some non-traditional review processes to
 overcome problems created by cancelled panel meetings.  In no case
 will NSF compromise on its standards for rigorous peer review.
 - NSF will explore mechanisms to avoid having award actions backlogged
 at the end of the fiscal year.
 - Announcements for some newly-planned special competitions will be
 delayed to allow the existing backlog of work to be accomplished.

 Short-Term Continuing Resolution

 Immediate Impact on NSF

 The continuing resolutions have been based on the lower of House or
 Senate actions on NSF's request for Fiscal Year 1996 or the Fiscal
 Year 1995 appropriation.  For NSF's research and related activities
 account, that is significantly lower than the request for 1996.  Only
 a prorated portion of this amount is available for obligation.
 Implementation of NSF planning for FY 1996 is extremely difficult
 because of the uncertainty as to the final budget level.  In
 particular, program officers do not have final program budgets, yet
 must make decisions on a continuing basis.

 Intermediate and Long-Term Impacts on NSF and the Science and
 Engineering Community

 For some large awards, both new awards and continuing increments, NSF
 will have to make successive partial awards for less than twelve
 months, rather than providing the amount for a full year at one time.

 Given the unprecedented nature of this year's budget process, there
 are likely to be impacts that we cannot anticipate at this time.  We
 will continue to keep you informed periodically.  The most current
 information will be posted regularly on the NSF Home Page on the World
 Wide Web (http://www.nsf.gov).

                                    Neal Lane
                                    Director