NSF Conflict of Interest Policy

1) Purpose

This policy ensures that research and educational activities funded, or proposed for funding, by the National Science Foundation (NSF) are designed, conducted and reported free from bias caused by an investigator’s financial interests. It implements the conflict-of-interest requirements in Chapter IX.A of NSF’s Proposal & Award Policies & Procedures Guide (PAPPG), including its successor guidance.

NSF encourages researchers to work with industry and entrepreneurial ventures, while recognizing that this raises the risk of conflicts of interest. BTC Media Labs LLC (“BTC Media Labs”, “the Organization”) shares that view. Outside financial interests are not wrong in themselves. They must be disclosed, reviewed and, when needed, managed.

2) Applicability

This policy applies to every proposal BTC Media Labs submits to NSF, and every NSF award it receives, including Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) proposals and awards. It applies to each investigator (Section 3) on those proposals and awards.

NSF requires a written conflict-of-interest policy of organizations employing more than fifty persons. BTC Media Labs adopts this policy voluntarily and follows it regardless of its size.

Grants and cooperative agreements from Public Health Service (PHS) agencies, such as the NIH, are governed by BTC Media Labs’ separate Financial Conflict of Interest (FCOI) Policy for PHS-funded research. Awards from other funders are governed by BTC Media Labs’ Conflict of Interest and Financial Conflict of Interest Policy and by the terms of each award.

3) Definitions

Investigator: the principal investigator (PI), co-PIs, and any other person identified on the proposed project who is responsible for the design, conduct or reporting of research or educational activities funded, or proposed for funding, by NSF.

Significant financial interest (SFI): anything of monetary value, including but not limited to:

salary or other payments for services (e.g., consulting fees or honoraria);
equity interests (e.g., stocks, stock options, private equity or other ownership interests);
venture or other capital financing;
intellectual property rights (e.g., patents, copyrights and royalties from such rights).

The term does not include:

salary, royalties or other remuneration from BTC Media Labs;
any ownership interest in BTC Media Labs, when BTC Media Labs is an applicant under the SBIR or STTR programs;
income from seminars, lectures or teaching engagements sponsored by public or non-profit entities;
income from service on advisory committees or review panels for public or non-profit entities;
an equity interest that, when aggregated for the investigator and the investigator’s spouse and dependent children, meets both of these tests:
- 1. it does not exceed $10,000 in value, as determined through reference to public prices or other reasonable measures of fair market value; and
- 1. it does not represent more than a 5% ownership interest in any single entity;
salary, royalties or other payments that, when aggregated for the investigator and the investigator’s spouse and dependent children, are not expected to exceed $10,000 during the prior twelve-month period.

Conflict of interest: exists when the Designated Official reasonably determines that a significant financial interest could directly and significantly affect the design, conduct or reporting of NSF-funded research or educational activities.

Designated Official (DO): the person or persons named in Section 5.

4) Disclosure

What to disclose. Each investigator discloses to the DO all significant financial interests of the investigator, including those of the investigator’s spouse and dependent children:

1. that would reasonably appear to be affected by the research or educational activities funded, or proposed for funding, by NSF; or
1. in entities whose financial interests would reasonably appear to be affected by such activities.

When to disclose.

At proposal submission. All required disclosures are made no later than the time the proposal is submitted to NSF.
Annually during the award, on or before January 31 each year.
Within 30 days of obtaining a new reportable significant financial interest during the award.

Disclosures are made on BTC Media Labs’ NSF Financial Interest Disclosure Form and kept under Section 10.

5) Designated Official

The Designated Official (DO) is BTC Media Labs’ Chief Executive Officer or any other senior officer designated by the Chief Executive Officer. The DO:

reviews financial disclosures;
determines whether a conflict of interest exists;
determines what conditions or restrictions, if any, BTC Media Labs imposes to manage, reduce or eliminate it.

Because BTC Media Labs is a small company, the DO also reviews the DO’s own disclosures. The DO records the reasoning for each determination in the conflict-of-interest records.

As BTC Media Labs grows, it may designate additional or different DOs from among its officers. Any such designation is made in writing and kept in the records. When more than one DO is designated, a DO with a disclosed interest in the matter under review, or where more independence is warranted, steps aside. The remaining DO(s) decide, and the recusal is documented.

6) Review and determination

The DO reviews each disclosure before the proposal is submitted, and again whenever a disclosure is updated. For each disclosed significant financial interest, the DO decides, and records why:

whether the interest would reasonably appear to be affected by the NSF-funded (or proposed) activities, or is held in an entity whose financial interests would reasonably appear to be affected; and
if so, whether it could directly and significantly affect the design, conduct or reporting of those activities. If it could, a conflict of interest exists.

The DO may consult the investigator.

7) Managing conflicts

All conflicts of interest for each NSF award are managed, reduced or eliminated before any award funds are spent. Conditions or restrictions may include, but are not limited to:

public disclosure of the significant financial interest;
monitoring of the research by independent reviewers;
modification of the research plan;
disqualification from participation in the portion of the NSF-funded research that would be affected by the significant financial interest;
divestiture of the significant financial interest;
severance of relationships that create the conflict.

The DO records the conditions on BTC Media Labs’ internal conflict management plan template, obtains the investigator’s written agreement, and monitors compliance until the award ends.

Proceeding without conditions. If the DO determines that imposing conditions or restrictions would be ineffective or inequitable, and that the potential negative impacts of the significant financial interest are outweighed by the interests of scientific progress, technology transfer, or public health and welfare, the DO may allow the research to go forward without conditions or restrictions. The DO documents the reasons.

8) Informing NSF

BTC Media Labs keeps NSF’s Office of the General Counsel (OGC) appropriately informed, in the manner NSF directs, if it finds either of these:

that it is unable to satisfactorily manage a conflict of interest; or
that research will proceed without conditions or restrictions when a conflict of interest exists (Section 7).

BTC Media Labs cooperates with OGC’s review. It provides this policy, describes the actions it plans to take or has taken, and confirms when they are complete. It does not report conflicts that it manages under Section 7.

9) Subrecipients and collaborators

If BTC Media Labs carries out NSF-funded research through subrecipients or collaborators, it takes reasonable steps to ensure that either:

the entity has its own conflict-of-interest policy meeting NSF’s requirements; or
investigators working for that entity follow this policy.

Each subaward or collaboration agreement states which applies.

10) Records

BTC Media Labs keeps records of all financial disclosures and of all actions taken to resolve conflicts of interest. It keeps them for at least three years beyond the termination or completion of the award to which they relate, or until any NSF action involving those records is resolved, whichever is longer.

11) Enforcement and sanctions

Compliance with this policy is a condition of employment, engagement (for consultants and collaborators) or subaward for every investigator. At BTC Media Labs’ discretion, and depending on the seriousness of the failure, failure to comply may result in:

formal written notification and required retraining;
restrictions on participation in the research or on use of award funds;
removal from the project;
suspension or termination of employment, a consulting agreement or a subaward;
disqualification from future work on federally funded research at BTC Media Labs.

Failures include:

failure to disclose a significant financial interest;
failure to follow conditions imposed under Section 7.

BTC Media Labs also takes any action NSF requires.

This policy covers conflicts of interest only. Investigators must also meet NSF’s separate requirements, including:

disclosure of current and pending (other) support;
the certification regarding malign foreign talent recruitment programs;
research security training;
the responsible and ethical conduct of research.

These follow the PAPPG and the terms of each award.

13) Useful resources

14) Point of contact

Questions about this policy, and disclosures of financial interests:

BTC Media Labs LLC
contact@btcmedialabs.com