Commonwealth of Pennsylvania (COP)

Working with the Commonwealth of Pennsylvania – Agreement Types

• Grants fall under the jurisdiction of the Commonwealth’s Office of Budget and are intended for the benefit of the public. Agencies have the statutory authority to issue grants which may be competitively bid or sole source. Many agencies have their own grant agreement format (for instance DEP has Form 7C-K-460) which includes many standard non-negotiable provisions; however, the agency grant officer does have the latitude to make changes they deem acceptable and reasonable.  Grants are issued bilaterally and require both Commonwealth and PSU signatures.
• Purchase Orders. Purchase orders fall under the jurisdiction of the Commonwealth’s Department of General Services (DGS) and are considered a service and for the benefit of the issuing agency. As they are considered procurement actions, the terms and conditions attached to purchase orders are considered non-negotiable. Purchase orders are typically issued unilaterally and do not require a Penn State signature. Penn State can receive purchase orders using a variety of terms and conditions:

• Intergovernmental Agency Agreements (IGA). IGAs are typically issued to schools in the Pennsylvania State System of Higher Education and have standard terms and conditions.

Working with the Commonwealth of Pennsylvania – Travel

The Commonwealth follows the U.S. General Services Administration (GSA) rates. These rates may be reviewed by clicking here link.   Manual 230.1 Commonwealth Travel Procedures Manual of the aforementioned website includes important details related to travel.

• The COP mileage reimbursement rate follows the GSA/Federal Travel Regulations found here:
   
• Applicable per diem rates can be found here:
  If proposed hotel/per diem exceeds the maximum amount (for instance if a conference hotel rate exceeds the rate for that area), the University may request a deviation from the GSA rate. A rationale for the requested higher rate and documentation of attempts made to find lower cost lodging must be provided to the agency for their written approval. NOTE: The request for deviation and Commonwealth approval must be accomplished at the proposal stage. The decision to approve an exception to the GSA hotel/per diem rates is at the sole discretion of the Commonwealth agency.
   

Mileage and per diem will be charged at the current rate on the date of travel in accordance with Commonwealth (GSA) regulations. Travel costs should provide a breakdown of each trip and the cost estimates associated with each trip.
 

• Post Award Note: Regarding travel which is not included in the original budget but is subsequently deemed necessary for the project, please review the agreement for any rebudgeting language/guidelines. In the absence of any such language or if the rebudget does not fall within the guidelines, a request should be submitted to the agency (along with a justification/budget revision) for approval. In most instances an amendment/modification of the award will be issued by the sponsor.
   

*RESTRICTION ON TRAVEL OUTSIDE THE COMMONWEALTH OF PENNSYLVANIA*

Currently all out-of-state travel (includes travel from Pennsylvania to anywhere outside of the state and also travel from anywhere outside the state into Pennsylvania) on Commonwealth-funded projects is prohibited unless prior written approval is received from the issuing Commonwealth agency (see below for exceptions to this ban). Please contact the person who issued the agreement on behalf of the Commonwealth to request approval.

Please note that Commonwealth awards that utilize federal flow-through funding are NOT subject to this ban on out-of-state travel. Any changes to this policy will be updated when received from the Commonwealth’s Department of General Services. For further details on this restriction and the process for obtaining approval of out-of-state travel, please click here.

The prohibition on out-of-state travel on Commonwealth-funded projects does not apply to:

Non-overnight vehicle or train travel across state lines. However, the prohibition will be monitored and should not be circumvented by simply driving to destinations.

Travel funded 100% by third-party dollars, unless Commonwealth dollars are used to cover upfront costs, or the agency regulates, monitors, oversees, or supports the third party paying for the trip.  In such circumstances, travel must be approved by the Governor's office and is conditional upon the total reimbursement of expenditures.

Working with the Commonwealth of Pennsylvania – Frequently Asked Questions

Q1:  What F&A rate should be applied to Commonwealth proposals?

A: It depends on the source of funding. There is currently no F&A recovery permitted on Commonwealth-funded awards with the rare exception when an RFP/solicitation states if some partial F&A recovery is permitted. F&A recovery on federal flow-through funding is allowable and subject to the guidelines of the federal funding agency. The source of funding should be verified at the proposal stage – please contact the agency if this information in not readily available. For further guidance, go to the Penn State F&A FAQ.

If the Commonwealth agency cannot identify the source of funding at the time of the proposal, the proposal should be submitted at the full applicable F&A rate (on or off-campus, instruction, etc. as appropriate for the project). If subsequent to proposal submission we receive written confirmation from the agency that the project will be 100% Commonwealth funded or a combination of Commonwealth and federal funds, the F&A can be recalculated at that time and a revised budget submitted.

Q2: What travel rates will apply to my award?

A: The Commonwealth follows the U.S. General Services Administration (GSA) rates. These policies may be reviewed by clicking here. Please note there is currently a ban on all out-of-state travel (inbound and outbound) when Commonwealth funds are utilized unless prior approval is obtained from the sponsor. Please see Travel section above.

Q3: RESERVED

Q4: Does the Commonwealth allow reimbursement of preaward costs?

A: Whether the award is a purchase order, grant, or contract, costs are not allowable prior to the start date/effective date of the award.

Q5: Does the Commonwealth accept our OMB Uniform Guidance (formerly A-133) audit or is a project-specific/program audit required?

A: For federal flow-through funding, the Commonwealth typically accepts our OMB Uniform Guidance audit. For Commonwealth-funded projects greater than $100,000, some agencies require a project-specific audit - this requirement should be identified in the RFP/solicitation. If required, it is an allowable direct cost as long as we include it in the budget – failure to include this cost at the proposal budget stage will require PSU to pay for the audit from University funds. For FY2022, the program audit cost to include in our budget is $7,000.

Q6: What determines the type of award document issued (grant, contract, purchase order, etc.)?

A: The type of award document issued is at the discretion of the Commonwealth agency.  Because the terms of the COP/PSU master agreement are already negotiated, it is our preference to receive purchase orders under the master agreement, but this is determined solely by the Commonwealth agency.

Q7: How long will it take to hear from the Commonwealth regarding the status of my proposal?

A: It may take up to several months to go through the review and approval process at the Commonwealth so submit your proposal as far in advance as possible.  For the subsequent award, please note some contracts and grants can be issued with a retroactive start date but purchase orders are typically effective the date they are issued with no costs allowable prior to the effective date.

Q8: How long will it take to process my agreement once it is received by the Office of Sponsored Programs?

A: Purchase orders are issued unilaterally so the processing time is typically shorter than for other types of awards. In the case of a contract or grant, this can be a very time-consuming process. Some terms may need to be negotiated but in the event we are unable to negotiate problematic provisions, an internal signoff will be required. Also, contracts and grants are typically issued bilaterally with the Commonwealth signing last – with multiple signatures required on the Commonwealth side, this can be a very time consuming process taking up to several months. Some contracts and grants can be issued with retroactive start dates but purchase orders are typically effective the date they are issued with no costs allowable prior to the effective date.

Q9: Are Commonwealth terms and conditions negotiable?

A: Purchase orders are considered procurement actions and the terms and conditions are considered non-negotiable. Grants and contracts include many standard provisions usually deemed non-negotiable, but the agency grant/contract officer does have the latitude to negotiate changes they deem acceptable and reasonable.

Q10: What happens if the Commonwealth cannot make requested changes to an award?

A: Often the Commonwealth cannot permit changes to provisions which the University deems to be problematic or a financial risk. In such instances, the Office of Sponsored Programs will prepare a signoff which lists the unacceptable terms, the changes we would make if the Commonwealth were willing to negotiate, and a description of the problem (financial risk for example). The PI and PI’s department head/Dean must complete and return the signoff to OSP to acknowledge their acceptance of these provisions as is.

Q11: Who owns capital equipment ($5,000 or greater) purchased under a Commonwealth award?

A: For Commonwealth awards other than purchase orders issued under the COP Master Agreement, ownership of capital equipment vests with the Commonwealth upon completion or termination of the project.  The Commonwealth may at its sole discretion take possession of such equipment. The Commonwealth does have the discretion to allow Penn State to retain such equipment until such time the Commonwealth chooses to take possession, provided that Penn State in the interim may use the equipment only for non-commercial research or educational purposes.

For information on equipment ownership under the Commonwealth of Pennsylvania Master Agreement, please click here and select 'Frequently Asked Questions - Commonwealth Master Agreement', question #11).

Q12: What are the rebudgeting requirements on Commonwealth awards? What do I need to do?

A: Most Commonwealth contracts and grants include rebudgeting guidelines/approval requirements, but they are not all the same. Review the agreement to see if guidelines are provided. If none are included, it is highly recommended that a formal rebudget request (this would include carryover requests) be submitted to the agency for approval. Approval may be in the form of an email, letter, or formal modification of the agreement.

Q13: What is the Commonwealth’s Enhanced Minimum Wage Provision and does it apply to Penn State?

A: In March 2016, Commonwealth Executive Order 2016-02 ‘Minimum Wage for Employees of the Commonwealth and of Organizations Receiving State Contracts’ was enacted. This order was amended effective January 31, 2022, increasing the state contractor minimum wage to $15/hour: https://www.oa.pa.gov/Policies/eo/Documents/2016_02.pdf. An additional bulletin was published on March 4, 2023, increasing the state contractor minimum wage to $16.17/hour effective July 31, 2023: https://www.pacodeandbulletin.gov/Display/pabull?file=/secure/pabulletin/data/vol53/53-9/280.html.

This executive order is included in the new COP Master Agreement but will be followed by Penn State for all COP awards and agreement types (purchase orders, grants, contracts, etc.). Penn State will also follow these wage requirements whether Commonwealth or federal pass-through funding and for all subagreements where the COP is the prime sponsor.

Further details on the Commonwealth’s Enhanced Minimum Wage Provision can be found here.

Working with the Commonwealth of Pennsylvania – Commonwealth Master Agreement

Click HERE and select ‘Instructions for Utilizing the Commonwealth of Pennsylvania (COP) Master Agreement’ for more information on utilizing the Commonwealth Master Agreement.

Working with the Commonwealth of Pennsylvania - Other Commonwealth of Pennsylvania Information/Forms

Commonwealth proposal and awards often mention additional references or forms that we are required to complete and return. Below is a sampling of the most commonly referenced terms and forms:

• Commonwealth of Pennsylvania Management Directive 305.21
  • Requires COP agencies to identify source of funds provided to Penn State
     
• Pennsylvania Department of General Services (DGS)
   

• Agency responsible for coordination of the COP Master Agreement
   
• Form STD-21 (Contract Compliance Data)
   

• Form to certify Penn State complies with COP nondiscrimination policies.  Submitted annually.  Contact OSP prior to submitting this form as it may have already been submitted and is on-file with the Commonwealth.

  Form STD-168 (MBE/WBE)
   

• May be requested by COP agencies to document Penn State's efforts to utilize minority and women-owned businesses in the conduct of awards. When required by a Commonwealth agency, contact OSP who will work with the University’s Supplier Diversity Manager to complete and submit the form to the COP agency.