What is the risk?
Certain institutional financial transactions are directly impacted by Research Security concerns, and it is important for the FIU community to remain aware of how these scenarios are triggered and how FIU addresses them through its Research Security program.
Procurement
Procurement activities which involve a restricted party or sanctioned country raise both export control and research security concerns, and are often prohibited without an export control authorization and sponsor approval.
Likewise, procurement of certain items may be prohibited without a license under export control regulations, and/or prohibited by federal contracting requirements. NDAA Section 889 of the 2019 National Defense Authorization Act (NDAA) prohibits US federal government agencies, contractors, grant and loan recipients from procuring or using certain “covered” telecommunications equipment and services as described in the statute, which are sourced from any of approximately 60 companies associated with data penetration/infiltration concerns. Typically, sponsored research awardees are required to certify to the sponsor that none of the equipment, software, or other inputs used in furtherance of the research deliverable is sourced from these entities.
Institutional Conflict of Interest
Institutional conflicts of interest arise when an institution’s own financial interests or those of its senior officials pose risks of undue influence on decisions involving the conduct of research within the institution that could affect the value of the institution’s patents or its equity positions in spin-off entities. Conflicts of interest may also arise when institutions seek and receive gifts or grants from companies, for example, a gift of an endowed university chair or a grant for a professional society to develop a clinical practice guideline.
FIU’s Response:
In general, FIU conducts restricted party screening on all proposed vendors and subcontractors including (but not limited to) the NDAA-restricted companies to ensure that to the best of FIU’s ability, it is avoiding financial and procurement-related transactions with restricted parties. Specifically, FIU’s standard procurement Terms and Conditions require vendors to comply with Section 889.
FIU’s restricted party screening protocol also proactively identifies persons or entities of concern who are proposed as business partners for purposes of a financial transaction or donor of gifts on behalf of the University.
FIU’s Financial COI Policies and procedures are further designed to identify scenarios where financial interests held by senior personnel potentially conflict with the university’s academic and research mission as a public institution.