Dear Colleagues:

The verdict is not yet final but all indications are leading to Auburn
University NOT accepting the liability language in the NCHRP proposal
statement and awards.  I discussed (or received e-mails about) this issue
with several (14) institutions.  All expressed serious concerns for the
limitless liability.  Three are definitely continuing to work with NCHRP
but the others are either not submitting future proposals, not accepting
pending awards, or are passing the issue to a higher authority for
assistance in making a decision.  An additional kicker is that the clause
must be flowed down to sub-recipients.  We can't find a sub-recipient that
will accept the language and in some cases, our proposed sub-recipient is
one of the institutions with whom I have discussed this very issue.  We are
giving up $800,000.

I asked NCHRP today if there was any way to modify the language.  I
explained that even if we were willing to accept the risk, many of our
smaller sub-recipients could not afford the insurance limits and therefore
we might be unable to conduct the project.  Their concern for my
predicament was  "underwhelming".  Their basic position has always been and
continues to be that if you don't wish to agree to the language, then don't
bother to submit a proposal.  As expected, our Investigators are
devastated.  Both are new Assistant Professors and this is their first
major award.   I am quite upset also that there is no compromise.  We have
had an excellent relationship with NCHRP for many years.  The projects
funded and conducted have been grand.  It seems a shame for all of the
scientists involved that this legality can not be negotiated in a more
reasonable manner.

I wish to thank each of you who responded via e-mail or personally and also
to those who commiserated in silence.  Your assistance and instruction on
the finer points of this and other issues are always appreciated.  Until
next time......

----------------------------------------------------------
Martha M. Taylor,   Director               (334) 844-4438
Contracts and Grants Administration         FAX (334) 844-5953
307 Samford Hall
Auburn University,  AL  36849-5131
xxxxxx@mail.auburn.edu