1.5: Funding Disbursement

Negotiate a schedule of disbursement of funds for each IMI.

Other Information:

Disbursement of Federal Funds -- A schedule of disbursement of funds will be negotiated for each IMI depending on the nature of the Institute and proposed projects. It is anticipated that for most Institutes, the level of Federal funding will be larger at the start, and will become progressively lower as the Institute becomes self-sufficient, as shown in Figure 1. Figure 1 shows the envisioned Federal investment in an exemplar, capital equipment-intensive Institute, and is not a funding profile that will be required of all Institutes. Federal funding is shown during the first year for Equipment, Startup, and an initial slate of Base Projects. As the Institute matures, it begins to absorb more of its own operational costs. During year four, Federal funding of projects begins to depend on the Competitive Project Grants. The pool of funds available for the competitive project grants is approximately 25% of the total funding provided to the Institutes. The competitive project grants will be relatively small in number, totaling 2 or 3 per Institute beginning in year 4, and relatively large in scale, each around $2-3 million. The competitive project grants will encourage increasing partner co-investment as the Institute matures. Continuation of Federal funding will be contingent on the completion of annual reports, and on the successful completion of a gate review process examining both quantitative and qualitative metrics of performances including: co-investment, membership, facility utilization, project portfolio, success stories, technology commercialization, or other benchmarks that assess Institute performance and impact. It is anticipated that a gate review will occur at least at year three after initial funding. Not shown in Figure 1 is the co-investment funding provided by non-Federal sources. The non-Federal support is anticipated to be large at the time of award and primarily comprised of in-kind items such as equipment and buildings. Over time, the funding will shift to project, member fees, user fees, licensing and other sources.

Stakeholder(s):

• IMIs

Indicator(s):

Indicator:1

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