RESEARCH EXCELLENCE PROGRAM GUIDELINES 

The Ontario Research Fund Research Excellence (ORF-RE) program promotes research excellence in Ontario by supporting transformative, internationally significant research of strategic value to the province.

The ORF-RE focuses on scientific excellence, strong commercialization, and strategic value to Ontario, and targets new, leading-edge research initiatives. All proposals are required to provide a rationale as to why an investment in their research project is important to Ontario.

The program will contribute towards eligible costs to a maximum of 1/3 of the total project costs, with 1/3 of the remainder coming from the applicant institution(s) and 1/3 from the private sector.

Notice of Intent

Applicants must submit a Notice of Intent (NoI) no later than 60 days after the Call for Proposals. A one paragraph (500 word) overview is required with each NoI and will be posted on the ORF-RE website to help institutions identify opportunities for meaningful collaboration on projects with similar research topics or with similar objectives.

Deadline Dates

The closing date for submitting a Notice of Intent (NoI) for Round 4 is May 15, 2009.
The closing date for submitting a Proposal for Round 4 is July 31, 2009.

Funding

The ORF-RE program will fund direct operating costs (including salaries and benefits and limited costs for facilities and equipment, management and administration), as well as a portion of indirect (overhead) costs of doing research. It will contribute a maximum of 1/3 of the total project costs, with 1/3 of the remainder coming from the applicant institution(s) and 1/3 from the private sector.  The funding will be provided by way of a grant agreement between Ontario and the lead institution.

The ORF Board may consider a "blended" funding formula in cases where the institution and its private sector partners, in combination, make up 2/3 of the required funding. This funding flexibility would be provided based on the opportunity for success and the quality of the partnership between the applicants and their private sector partners.

Should the institution and its private sector partners fail to raise the needed 1/3 each or in the case of a blended funding formula, the required 2/3 of the total project value, the ORF-RE grant may be reduced proportionately.

The ORF-RE grant will not exceed the absolute dollar value of the approved amount, even if this ends up being less than 1/3 of the total project value.

As a general rule, the minimum support provided by the ORF-RE to a project is $1 million and the maximum support provided is $8 million. Only in exceptional circumstances will requests over $8 million be considered.

Please note: Institutional and private sector contributions to direct costs can be cash or in-kind. (For contributions to indirect costs, refer to section on Eligible Indirect Costs.)

Eligible Applicants

Funding is open, on a competitive basis, to:

• Ontario publicly assisted universities
• Ontario colleges of applied arts and technology
• Ontario hospital research institutes
• not-for-profit research institutes affiliated with an Ontario university or hospital, excluding those funded primarily by business or industry
• consortia of the above, with one institution as lead applicant, assuming responsibility and accountability for the consortium
• other Ontario not-for-profit research institutions at the discretion of the ORF Advisory Board

Funds contributed by the ORF-RE for approved projects are disbursed to the eligible lead research institution. All research supported by ORF funds, including international initiatives, must be conducted in Ontario at an eligible institution.

Please note: Approved consortia (multi-institutional) projects must have an Inter-Institutional Agreement (IIA) in place as soon as practically possible. The IIA must identify and address:

• the lead institution
• governance structure
• Intellectual Property (IP) ownership and disposition
• control and ownership of research equipment
• financial arrangements, including allocations of contributions, expenditures and indirect costs.
  

Eligible Projects

While research proposals in all disciplines are eligible for ORF-RE Round 4, the Ministry particularly encourages collaborative projects across institutions and disciplines from the following focus areas, outlined in the Ontario Innovation Agenda:

• Bio-economy and clean technologies;
• Advanced health technologies; and
• Digital media and information & communications technologies.

All proposals received are subject to the peer-reviewed adjudication process and are evaluated based on the five program assessment criteria (see below).

Proposals must include a plan for:

• commercialization (including market potential and market analysis)
• IP ownership and disposition
• youth outreach/mentorship activities

Please note: Research capacity created by the ORF-RE program should be sustainable. Support for a project does not imply funding under a future ORF-RE round.

Ineligible Projects

ORF-RE will not support proposals seeking funding for:

• contract R&D where the private sector owns the resulting IP
• clinical trials
• endowed research chairs

Assessment Criteria

Proposals will be assessed using the following criteria:

• quality of research

• research excellence and scientific merit
• credentials of the research team
• where applicable, degree of inter-institutional and international research collaboration

• strategic value for Ontario

• anticipated value to Ontario demonstrated by the applicant (i.e. potential for economic or social benefit; and/or enhance the province's profile in the global scientific community)
• anticipated impact in the Round 4 focus areas, if applicable (see Eligible Projects)

• commercialization for the benefit of Ontario

• commercialization potential
• market analysis, including the current and projected local and global context
• commercialization pathway, which includes a clear strategy for achieving a project's short and/or long-term commercialization potential and practical application to industry
• strength and commitment of interested industry partners, demonstrated through private sector financial contributions and/or evidence of the private sector's vested interest in the research

Please note: Applicants are expected to demonstrate meaningful and verifiable private sector commitment, through private sector financial/cash and/or in-kind contributions and evidence of the private sector's vested interest in the research.

• development of research talent

• recruitment, retention and training of highly qualified personnel (HQP)
• meaningful engagement of graduate and post graduate students and post doctoral fellows.

• project management

• business plan for the management of the project, including governance structure (i.e. manager, arm’s length advisory board, scientific advisory committee, etc.)
• sustainability plan for the research capacity that is created
• project budget and budget justification
• clear, specific and measurable milestones and deliverables

Application & Review Process

The ORF-RE application and review process is as follows:

• institutions submit Notices of Intent (NoI) within 60 days of the Call for Proposals.
• NoI’s are posted on the Ministry website to help institutions identify opportunities for meaningful collaboration on projects with similar research topics or with similar objectives.
• institutions submit applications by the submission deadline date.
• ministry staff review applications for completeness.
• applications are forwarded to three external expert reviewers for assessment of scientific merit and quality of research.
• applications and external reviews are forwarded to peer review panels for a review against criteria.
• three peer review panel members conduct in-depth assessment of each application against the full set of assessment criteria.
• review panels make consensus recommendations to the ORF Advisory Board.
• the ORF Advisory Board makes recommendations to the MRI Minister.
• the MRI Minister makes the final decisions at his sole discretion.
• decisions are communicated to institutions by a letter to the institution’s Vice President of Research, the lead institutional contact and the Principal Investigator.

Project Management

An institution must detail and confirm that the management of the project will be accountable and will have sufficient authority and independence to ensure that public funds are used appropriately.

Proposals must clearly outline how the project will be managed and identify:

• project management and other key staff
• governance structures to be established (eg. Board of Directors, academic or scientific advisory committees). The governance structure should not include Ontario government participation.

Important: proposals must also outline how the research capacity will be sustained after completion of the project.

Project Budget

The ORF-RE aims to support new research only. Applicants are required to provide a zero-based budget that details all revenue sources that will support the operating needs of the proposed project, including:

• private sector contributions.
• institutional contributions (In Round 4 contributions from research-focused charities, foundations, and private philanthropists, as well as municipal and federal government contributions qualify as institutional contributions).
• the ORF funds

A detailed justification of each budget line item is required to allow reviewers to assess all costs and whether the requested resources are appropriate for the execution of the project. The final determination of an item's eligibility (contribution or expenditure) rests with the ORF.

Budgets for projects that include multiple sub-projects must include a budget amount for each sub-project, as well as outline financial inter-dependencies between sub-projects, if applicable.

The ORF provides operating funds. Accordingly, it is recommended that costs for:

• facilities and equipment do not exceed 10% of total direct costs
• management and administration do not exceed 10% of total direct costs

The budget and requests for disbursement must be prepared using a cash accounting method. The last reporting period may include accruals for the final financial audit report and other eligible budgeted expenses, as approved by MRI, but not paid by the project end-date.

Eligible Direct Costs

The ORF-RE grant can be used for the following eligible direct costs.

• salaries and benefits, which can include:

• salaries, stipends and related non-discretionary benefits of researchers, technical staff and management and administrative staff directly involved in the project, assistantships for students directly involved in the project: ORF will cover up to $20,000 for graduate student research assistants (Masters and PhDs) and $50,000 for postdoctoral fellows. However, institutions are free to top up the stipends extended to students and postdoctoral fellows assisting the research project.
• consulting fees
• honoraria for guest lecturers

Please note: Personnel costs can only be claimed in proportion to the time spent working on the project. The Ministry may request supporting documentation to this effect, such as time sheets or certification by the faculty Dean.

Fees for consultants—defined as individuals unrelated to any of the project partners and subcontracted to provide service or knowledge of a highly specialized nature for up to one quarter per fiscal year—must be essential to the research and demonstrate they save the project time and money. Their fees should reflect reasonable market rates.

When a private sector partner provides personnel with specialized knowledge or skills, ORF-RE will regard this as in-kind contribution to be valued at the proportioned time and salary level of the individuals involved, rather than consulting.

• facilities and equipment (up to 10% of total direct costs),  which can include: 

• research equipment and supplies and computer and communication equipment and software required for the research, including costs of purchase, refurbishment, transportation, extended warranties, importation costs, staff training for use, maintenance and operating costs (not including indirect costs such as power, insurance etc.)
• cost of renovations and alterations of existing space 
• leased space or institutional contributions of space when that space is newly developed, renovated, refurbished or leased 

Please note: Equipment, supplies, software etc. must be critically and explicitly needed to carry out the project.

• other direct research costs, which can include:  

• commercially available consumable supplies, reagents etc. 
• costs for dissemination of research results 
• costs of holding a workshop or seminar, including hospitality costs of networking purposes for research related activities  
• costs associated with outreach to private sector partners, including preparation of reports and travel to meetings 
• safety related expenses for field work, including immunizations, protective gear etc.

• management and administration, which can include: 

• salaries and benefits of management staff/personnel directly involved with the project 
• management and administration costs, including reasonable justifiable office supplies  
• telephone and internet services  
• reasonable out-of-pocket expenses for fieldwork, conferences and collaborative trips 
• air travel costs not to exceed full economy fares 
• travel costs to visit manufacturers to select major items of equipment.
• other costs, which can include items such as audits of the finances of the project as defined in the grant agreement.

Eligible Indirect Costs

Indirect costs are overhead costs associated with conducting the research project. 

The ORF grant is inclusive of both direct and indirect costs.  

Applicants can allocate up to—but not more than—40% of project total direct costs toward indirect (overhead) costs, in line with the institution's policy on overhead charges.

The ORF contribution includes overhead.  No more than 40% of the direct cost portion of the ORF contribution can be used for indirect costs. To determine the maximum amount that can be taken from the ORF contribution toward overhead, please use the following formula: Overhead amount = (grant amount / 1.4) x 40%.

For example, for a grant of $1,000,000, the maximum that can be taken for overhead purposes is ($1,000,000 / 1.4) x 40% = $285,714.

Overall project budget		Indirect costs = 40%		ORF Funds	Institutional contribution	Private sector contribution
		Direct costs = 60%		ORF Funds	Institutional contribution	Private sector contribution

 

Ineligible Costs

The ORF-RE grant is not to be used for the following:

• costs related to proposal development
• fees for use of equipment owned by the institution unless such fees are charged to all institutional users based on a published schedule
• costs relating to existing facilities infrastructure improvements, not specifically related to the proposal and/or not included in the original application
• opportunity costs
• any items or services not directly related to the project
• contract R&D (where the private sector owns the resulting IP)
• clinical trials
• endowed research chairs

Dates for Eligibility of Contributions and Expenses

Expenditures for the project are eligible only from the project start date to the completion date, as defined in the grant agreement. The start date is subject to negotiation, but it cannot be any earlier than the Round 4 Call for Proposals date of March 13, 2009.

Unexpended cash contributions will be considered eligible if made no earlier than twelve months prior to the posted deadline for submission of applications to a competition round (August 1, 2008 for contributions toward ORF-RE Round 4 projects).

Overhead is considered an expense and can only be shown beginning on the start date as defined in the grant agreement.

Eligible in-kind contributions are deemed expensed at the same time they are contributed or acquired by the research institution, therefore, can only be shown as contributed and expensed between the project start and end dates as defined in the grant agreement.

Institutional Contributions

Applicants must disclose the sources of their institutional contributions, which can include:

• federal granting council (Canadian Institutes of Health Research [CIHR], Natural Sciences and Engineering Research Council [NSERC] and Social Sciences and Humanities Research Council [SSHRC]) awards directed to researchers of the institution who are then involved in the research of the project-eligible for ORF matching. The industry portion of an NSERC CRD and an NSERC Industrial Research Chair will be considered as an eligible private sector contribution.
• the non-infrastructure portion of a Canada Research Chair award to an institution if the Chair is working on the project
• any research funding, philanthropic gift, or grants and gifts directed in general to the research institution and earmarked by the institution to an ORF-RE project or directed to the project itself

Private Sector Partners

Meaningful participation of industry in Ontario's research—as evidenced by financial and in-kind contributions and vested interest potentially leading to commercialization—is a significant part of both the ORF-RE's mandate and the program assessment criteria.  For the purposes of assessment, private sector partners can include:

• for-profit businesses
• business organizations and/or not-for-profit research institutes funded primarily by relevant business

While private sector partners do not need to be located in Ontario, the lead institution must demonstrate that the project will make a positive impact on Ontario's research and commercialization capabilities.

Please Note:Contributions from charities, foundations and private philanthropists cannot be used as part of the private sector contribution

In assessing the strength of the private sector commitment, researcher-owned sole proprietorships are not considered eligible private sector partners on a project in which the researcher is the principal investigator or collaborator. 

All researchers are required to fully declare any interest they have in any of the private sector partners named in the proposal.  In some cases, there may be less than arm's length relationships among certain private sector partners, institutions and researchers participating in the project (e.g. where the researcher is a part owner). 

Such relationships will be reviewed on a case-by-case basis and may be acceptable, provided the partner is fully capable of exploiting the results of the research without depending on the resources of the institution itself.  Where such relationships arise, they must be fully disclosed to the ORF in the application.

The applicant must provide all information on the degree of ownership of researchers involved in the project and their role in the private sector company to ensure that the commercial activity is consistent with the lead institution's established policies on disclosures of commercial interests, as well as with its conflict of interest guidelines. The lead institution may be required to confirm this capability at the time of contract negotiation against criteria determined by the ORF.

Private Sector Partner Contributions

Applicants are required to disclose all revenue sources for their project, including all private sector contributions, whether cash and/or in-kind.

Private sector cash contributions and vested interest in the project are to be fully detailed in the application with supporting documentation, such as attached letters of support. The letters should at a minimum include a statement of vested interest, a detailed description, with corresponding amounts, of contribution, and be signed by a person with signing authority.

In-kind contributions are non-cash resources. In-kind contributions need to be crucial to the project (i.e. if not contributed by the private sector, the institution would have to acquire the resources with institutional cash). 

Eligible in-kind contributions must be priced at fair market value and may include:

• equipment or related warranties
• materials and expendable supplies
• software and databases/datasets
• use of space or facilities
• salaries (including benefits) of professional, technical, analytical, or project-specific administrative personnel donated by the private sector partners
• access to unique databases or High Performance Computing services
• travel, including per diems paid to  private sector partner employees or contractors, for essential time limited off-site work related to the project

Ineligible in-kind contributions include:

• donations in the form of goodwill
• services that are usually performed for free
• salaries and benefits of staff not directly related to the project
• salaries and benefits of personnel who usually act as volunteers
• standard discounts – academic or otherwise

Fair market rates will apply for:

• expendable supplies
• physical space or use of facilities outside the institution
• use of facilities and equipment outside the institution
• remote field work

As a general rule, the ORF will adopt CFI's policy on assessing the value of in-kind contributions for infrastructure and related expenditures.

The ORF reserves the right to make the final determination of the eligibility and fair value of in-kind contributions.

Please note:  For the purposes of assessing the strength of a private sector contribution, the ORF reserves the right to request evidence of the private sector partners' financial viability, such as the private sector partner's most recent set of audited financial statements.

Intellectual Property (IP)

The ORF does not claim any ownership or rights to any IP resulting from ORF-RE funded projects. Such rights are to be determined by the lead institution in accordance with its current IP policy. In cases where a consortium of applicants exists, the policy, as dictated in the Inter-Institutional Agreement (IIA) between the consortium members, will dictate the IP policy.

Applicants are expected to make mutually agreeable commercialization arrangements with their private sector partners, and to demonstrate how the economic benefit of the proposal extends beyond the private sector partners.

Please note: The ORF requires that all applicants adequately address IP issues at the time of application.  If an applicant does not have the right of "freedom to operate" (i.e. if they may infringe on someone else’s intellectual property rights) with regards to IP developed, the ORF will consider their submission as contract research and, as such, ineligible under the ORF-RE program criteria.  The ORF may request a copy of the institutional and/or relevant IP policy.

Ownership and Control of Research Equipment

Ownership and control of research equipment related to a funded ORF-RE project must remain with the institution for a period of five (5) years after acquisition and/or installation. In the case of a project with a multi-institutional composition or consortium, the IIA should dictate the arrangements made with regard to the ownership, control and disposal of research equipment.

Research equipment must be located at an eligible research institution(s), or outside an eligible research institution when it can be shown that this is the most effective placement of the equipment. Any change in location requires notification in writing to the ORF and may require the approval of the ORF.

Youth Science and Technology Outreach

Successful applicants will be required to connect youth with researchers and may use up to 1% of the ORF grant to undertake annual youth science and technology outreach activities.  The primary target audience is high school students as they are most receptive to in-depth mentorship experiences.

Researchers can:

• engage youth audiences as well as educators and the general public both on-campus and in the local community
• expand on current outreach activities, or start new initiatives with an emphasis on activities that are free to youth and the public
• partner with other researchers in their institution(s) to undertake a broader outreach initiative
• participate in outreach activities operated by other organizations, such as science awareness organizations
• involve graduate students in outreach program design and delivery
• apply provincial contributions to expenses incurred in developing and delivering the outreach activity, e.g. consumable supplies, development of working models, mileage

Outreach activities can include such initiatives as speaking opportunities, lecture series, workshops and demonstrations, student competitions and lab mentorship.

For more details on outreach activities, consult the Youth Science and Technology Outreach Program Guidelines.

Common Application Errors and Weaknesses

Common weaknesses of applications identified in the first two rounds of competition include:

• failure to meet scientific excellence criterion
• failure to indicate how the proposal differs from the current state of the art research in the field, within the Ontario context as well as nationally and internationally
• failure to indicate how the proposed research differs from research previously funded by the Ontario government
• proposed research lacks focus (numerous, unrelated or loosely related projects)
• failure to “make the case”, i.e. to explain the steps that led to the proposed research concept
• failure to demonstrate the strategic value of the research to Ontario
• proposed research is not ground-breaking or innovative (e.g. small scale, single experiment focused)
• proposed research has weak commercialization potential and/or weak research capacity building (HQP)
• the budget appears inflated and/or expenses are not adequately justified
• the management structure is poorly defined
• the governance structure lacks autonomy
• sustainability is questionable beyond government funding

Grant Agreement

When funding for a proposal is approved, the successful applicant will sign a grant agreement (a contract) with MRI.

The agreement will address terms and conditions for the disbursement of the grant that include, but are not limited, to:

• milestones, deliverables and performance measures
• project budget
• project management
• mode and schedule of payments
• accountability framework
• IP ownership and disposition
• communications strategies
• contract termination clauses
• monitoring and reporting requirements, including annual progress reporting, financial audits and Request for Disbursement and other reports as stipulated

The ORF will monitor the project in relation to:

• governance
• annual progress reports, including success stories
• project milestones, deliverables and performance measures
• cash flow
• financial reporting and audits
• youth outreach
• IP arrangements
• other requirements as set out in the contract

Please note: The ORF, at its discretion and upon reasonable notice, reserves the right to undertake periodic scientific reviews of projects.
For your information, you can download a sample copy of the ORF-RE Round 4 contract.

Disbursement of Funds

Approved projects will be paid quarterly or on a bi-annual basis, through a Request for Disbursement (RFD) process. The bi-annual option will be available, subject to ORF approval, for projects that have filed timely quarterly reports for at least a year and met all of their contractual obligations.

For single institutional projects, MRI expects a Request For Disbursement to be submitted within 30-45 days after the end of a current quarter.  For multi-institutional projects, the expectation is 45-60 days.

The ORF-RE grant is subject to a 10% holdback, which will be disbursed after the final ORF review of the project's impact, finances and fulfillment of project objectives.

Application Instructions and Forms

Please download the ORF-RE Notice of Intent, Application Instructions and Application Form, including the Budget Workbook.

Contact Information

If you have questions about the ORF-RE check Frequently Asked Questions or contact:
Stephane Baffier, 416-325-4883, stephane.baffier@ontario.ca
Miranda Hotrum, 416-212-7060, miranda.hotrum@ontario.ca

Linked Documents

Application Form
Application Instructions
Budget Workbook
CFI Policy on Assessing the Value of Items Involving In-kind Contributions
Classification Codes for Research Disciplines
Classification Codes for Areas of Application
Conflict of Interest Policy for Expert Reviewers
Frequently Asked Questions
Guidelines for ORF-RE Round 4
Ontario Innovation Agenda
Sample Contract for ORF-RE Round 4
Youth Science and Technology Outreach Program Guidelines
Information Sessions for Ontario Research Fund-Research Excellence Round 4
Submitted Notices of Intent for ORF-RE Round 4

Information

The Ministry of Research and Innovation is subject to the Freedom of Information and Protection of Privacy Act.  The information and documentation provided to the Ministry of Research and Innovation may be shared with members of the ORF Advisory Board, the Review Panels, external expert reviewers and others for the purposes of administering the ORF program.