[Federal Register Volume 67, Number 90 (Thursday, May 9, 2002)]
[Rules and Regulations]
[Pages 31119-31123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11513]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Part 1240

[Notice (02-054)]
RIN 2700-AC47


Inventions and Contributions

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: NASA is amending its regulation to provide definitions, to add 
a new category of initial awards for release of software, to provide 
initial awards for the issuance of patents based upon continuation-in-
part and divisional patent applications, to increase the amount of 
certain awards, and to change delegations of authority from the NASA 
Administrator.

EFFECTIVE DATE: May 9, 2002.

ADDRESSES: Inventions and Contributions Board, Code RI, National 
Aeronautics and Space Administration, Washington, DC 20546-0001.

FOR FURTHER INFORMATION CONTACT: Mr. Walter D. Hussey Director of 
Staff, Inventions and Contributions Board, 202-358-2468.

SUPPLEMENTARY INFORMATION: To aid the NASA Inventions and Contributions 
Board in processing applications for awards, all applications must now 
be submitted using electronic media.
    NASA now provides initial awards for the filing of a non-
provisional U.S. patent application, or upon the issuance of a patent 
for a continuation-in-part or a divisional patent application, for an 
invention made and reported by an employee of NASA or an employee of a 
NASA contractor. The amounts of these awards are at least $1,000 for a 
sole inventor and at least $500 for each joint inventor. Also, no 
additional award is authorized for a continuation of a patent 
application where an initial award was authorized for the parent 
application and the parent application will be or has been abandoned. 
Furthermore, initial awards are not authorized for provisional 
applications under 35 U.S.C

[[Page 31120]]

111(b) or reissue applications under 35 U.S.C. 251.
    Initial awards are authorized for the approved release to a 
qualified user of a software package based on an innovation made and 
reported by an employee of NASA or a NASA contractor. The amounts of 
these initial awards are at least $1,000 for a sole innovator and at 
least $500 for joint innovators. The Board is authorized to recommend a 
supplemental monetary award in an amount that will be based on an 
evaluation of the technical and commercial merits of the innovation. No 
contribution may receive an award unless NASA has an ownership interest 
in the software, the software is of commercial quality, the software 
has been verified, and the software has been distributed to qualified 
users. Lastly, awards for software release are not eligible to receive 
a Selected Tech Brief award based upon the publication of an 
announcement of availability in ``NASA Tech Briefs.''
    Initial awards for the publication of a selected innovation in 
``NASA Tech Briefs'' has been increased to at least $350 from the 
previous amount of at least $150.
    The Board will now recommend an award for a contribution to NASA, 
where upon evaluation of its scientific and technical merits, it is 
determined to warrant an award of at least $500. Previously, the 
threshold was set at $250.
    The maximum amount that may be paid for any innovation within any 
single category of initial award may not exceed $5,000.
    The Associate Administrator for Aerospace Technology, and the 
Chairperson, Inventions and Contributions Board, are both delegated 
authority to execute grants of awards for scientific and technical 
contributions to NASA not to exceed $2,000 per contributor. Also, the 
Chairperson, Inventions and Contributions Board, is delegated the 
authority to make initial awards.
    Lastly, a definitions section has been added to this subpart.

List of Subjects in 14 CFR Part 1240

    Decorations, Medals, Awards, Government contracts, Government 
employees, Inventions and patents.

    For reasons set out in the Preamble, 14 CFR part 1240 is revised to 
read as follows:

PART 1240--INVENTIONS AND CONTRIBUTIONS

Subpart 1--Awards for Scientific and Technical Contributions
Sec.
1240.100   Purpose.
1240.101   Scope.
1240.102   Definitions
1240.103   Criteria.
1240.104   Applications for awards.
1240.105   Special procedures--NASA and NASA contractor employees.
1240.106   Review and evaluation of contribution.
1240.107   Notification by the Board.
1240.108   Reconsideration.
1240.109   Hearing procedure.
1240.110   Recommendation to the Administrator.
1240.111   Release.
1240.112   Presentation of awards.
1240.113   Financial accounting.
1240.114   Delegation of authority.

    Authority: Section 306 of the National Aeronautics and Space Act 
of 1958, as amended (42 U.S.C. 2458), and the Federal Technology 
Transfer Act of 1986, sec. 12, 15 U.S.C. 3710b(1).

Subpart 1--Awards for Scientific and Technical Contributions


Sec. 1240.100  Purpose.

    This subpart prescribes procedures for submitting applications for 
monetary awards to the Administrator of NASA for scientific and 
technical contributions which have significant value in the conduct of 
aeronautical and space activities pursuant to 42 U.S.C. 2458, and 
establishes the awards program consistent with the Federal Technology 
Transfer Act of 1986, section 12, 15 U.S.C. 3710b(1).


Sec. 1240.101  Scope.

    This subpart applies to any scientific or technical contribution, 
whether or not patentable, which is determined by the Administrator 
after referral to the Inventions and Contributions Board to have 
significant value in the conduct of aeronautical and space activities 
for which an application for award has been submitted to NASA under 42 
U.S.C. 2458.


Sec. 1240.102  Definitions.

    As used in this subpart:
    (a) Administrator means the Administrator of the National 
Aeronautics and Space Administration.
    (b) Board means the NASA Inventions and Contributions Board.
    (c) Chairperson means the Chairperson of the NASA Inventions and 
Contributions Board.
    (d) Commercial quality refers to computer software that is not in 
an experimental or beta phase of development, that performs in 
accordance with its specifications, and includes documentation 
describing the software's form and function.
    (e) Contract means any contract, agreement, understanding, or other 
arrangement with NASA or another Government Agency on NASA's behalf, 
including any assignment, substitution of parties, or subcontract 
executed or entered into thereunder.
    (f) Contractor means the party who has undertaken to perform work 
under a contract or subcontract.
    (g) Innovation means a mathematical, engineering or scientific 
concept, idea, design, process, or product, reported as new technology 
on NASA Form 1679.
    (h) Innovator means any person listed as a contributor, inventor, 
or author of an innovation.
    (i) Invention includes any act, method, process, machine, 
manufacture, design, or composition of matter, or any new and useful 
improvement thereof, or any variety of plant, which is or may be 
patentable under the patent laws of the United States or any foreign 
country.
    (j) Qualified User means any person that has legally acquired 
computer software and has the right to use it for a legal purpose.
    (k) Verified means passing rigorous testing to ascertain whether 
the functionality claimed in the innovation's documentation is 
realized.


Sec. 1240.103  Criteria.

    (a) Only those contributions to NASA which have been:
    (1) Used in a NASA program or adopted or sponsored or supported by 
NASA, and
    (2) Found to have significant value in the conduct of aeronautical 
and space activities, will be recommended for award under this subpart.
    (b) In determining the amount, terms, and conditions of any award, 
the following criteria will be considered:
    (1) The value of the contribution to the United States;
    (2) The aggregate amount of any sums which have been expended by 
the applicant for the development of such contribution;
    (3) The amount of any compensation (other than salary received for 
services rendered as an officer or employee of the Government) 
previously received by the applicant for or on account of the use of 
such contributions by the United States; and
    (4) Such other factors as the Administrator shall determine to be 
material.


Sec. 1240.104  Applications for awards.

    (a) Eligibility. Applications for award may be submitted by any 
person

[[Page 31121]]

including any individual, partnership, corporation, association, 
institution, or other entity.
    (b) Information required. Applications for award should be 
addressed to the Inventions and Contributions Board (herein referred to 
as the Board), National Aeronautics and Space Administration, 
Washington, DC 20546-0001, and will contain:
    (1) The name and address of the applicant, the person's 
relationship to the contributor if the contribution is made by one 
other than the applicant, and the names and addresses of any others 
having information as to the value or usage of the contribution;
    (2) A complete written description of the contribution, in the 
English language, using electronic media, accompanied by drawings, 
sketches, diagrams, or photographs illustrating the nature of the 
contribution and the technical and scientific principles upon which it 
is based, any available test or performance data or observations of 
pertinent scientific phenomena, and the aeronautics or space 
application of the contribution;
    (3) The date and manner of any previous submittal of the 
contribution to any other United States Government agency, and the name 
of such agency;
    (4) The aggregate amount of any sums which have been expended by 
the applicant for the development of the contribution;
    (5) The nature and extent of any known use of the contribution by 
the United States and by any agency of the United States Government;
    (6) The amount of any compensation (other than salary received for 
services rendered as an officer or employee of the Government) 
previously received by the applicant for or on account of the use of 
such contribution by the United States;
    (7) Identification of any United States and foreign patents applied 
for or issued relating to the contribution; and
    (8) An agreement to surrender all claims which such applicant may 
have for the use of such contribution by the Government.
    (c) General. (1) Each contribution will be made the subject of a 
separate application in order that each contribution may be evaluated 
individually.
    (2) Material constituting a possible hazard to safety or requiring 
unusual storage facilities should not be submitted, and will not be 
accepted. Models or intricate exhibits demonstrating the contribution 
will not be accepted unless specifically requested by the Board. In 
those few cases where such models or exhibits have been submitted 
pursuant to a request made by the Board, the same will be returned to 
the applicant upon written request from the applicant.
    (3) It is the policy of the Board to use or disclose information 
contained in applications for awards for evaluation purposes only. 
Applications for awards submitted with restrictive legends or 
statements differing from this policy will be treated in accordance 
with the Board's policy.


Sec. 1240.105  Special procedures--NASA and NASA contractor employees.

    (a) A NASA Headquarters office, a NASA field installation, or a 
NASA contractor may submit to the Board an application for an award 
identifying the originator(s) of any scientific or technical 
contribution conceived or developed during the performance of a NASA 
program or contract, and which is considered to be of value in 
advancing the state of knowledge in space or aeronautical activities, 
whether or not the contribution is the subject of a NASA Tech Brief, 
software approved for public release, or of a U.S. patent application.
    (b) The Board will recommend to the Administrator or a designee 
that an initial award of at least $1,000 be granted to a sole inventor, 
or $500 each to joint inventors, upon submittal of NASA Form 1688 by 
either the Associate General Counsel for Intellectual Property, for an 
invention made and reported by a NASA Headquarters employee or an 
employee of a NASA Headquarters contractor, or a patent counsel at a 
NASA field installation for an invention made and reported by an 
employee of that installation or by an employee of an installation 
contractor, has filed a nonprovisional U.S. patent application or that 
a continuation-in-part or divisional patent has been issued. The Board 
is authorized to recommend a supplemental monetary award in an amount 
that will be based on the evaluation of the technical and commercial 
merits of the invention. No additional award will be given for a 
continuation patent application where an initial award was authorized 
for the parent application and this parent application will be or has 
been abandoned. In addition, initial awards will not be granted for 
provisional applications under 35 U.S.C. 111(b) or reissue applications 
under 35 U.S.C. 251.
    (c) When the Board receives written notice (NASA Form 1688) that a 
NASA Center has approved for release to qualified users a software 
package based on an innovation made and reported by an employee of NASA 
or a NASA contractor on NASA Form 1679, the Board will recommend to the 
Administrator or designee that an initial award of at least $1,000 be 
granted to a sole innovator, and an award of at least $500 will be 
granted to each originator of the innovation if there is more than one. 
The Board is authorized to recommend a supplemental monetary award in 
an amount that will be based on the evaluation of the technical and 
commercial merits of the innovation. No contribution may receive this 
award unless:
    (1) NASA has an ownership interest in the software; i.e., NASA has 
the unrestricted use of the software in perpetuity at no charge from 
any other entity;
    (2) The software is of commercial quality; i.e., is not in 
experimental or beta phases of development and includes documentation, 
either in paper or electronic formats, describing the software's form 
and function;
    (3) The software has been verified to perform the functions claimed 
in its documentation on the platform for which it was designed without 
harm to the systems or data contained within; and,
    (4) The software has been distributed to qualified users upon the 
written approval for release by Center management.
    (d) Software dissemination awards are not eligible to receive 
selected Tech Brief awards based upon the publication of an 
announcement of availability in ``NASA Tech Briefs.''
    (e) When the Board receives written notice (NASA Form 1688) that a 
NASA Center has approved for publication a selected NASA Tech Brief 
based on an innovation made and reported by an employee of NASA or a 
NASA contractor on NASA Form 1679, the Board will recommend to the 
Administrator or designee that an initial award of at least $350 be 
granted, and an award of at least that amount will be granted to each 
originator of the innovation. The Board is authorized to recommend a 
supplemental monetary award in an amount that will be based on the 
evaluation of the technical and commercial merits of the innovation.
    (f) When a selected NASA Tech Brief has been approved for 
publication, and/or a NASA Center has approved the release of a 
software package, and/or the filing of a U.S. patent application has 
been authorized for the same contribution, the initial awards 
authorized in paragraphs (b), (c), and (e) of this section will be 
cumulative.
    (g) Initial awards authorized in paragraphs (b), (c), and (e) of 
this

[[Page 31122]]

section may not exceed a total of $5,000 per category. Such cases, 
wherein a large number of multiple innovators are contributors, must be 
submitted for formal evaluation by the Board on a NASA Form 1329 or 
1329A.
    (h) Awards authorized in paragraphs (a), (b), (c), and (e) of this 
section will not be granted to a contributor who has previously 
received full compensation for, or on account of, the use of such a 
contribution by the United States.
    (i) If a contribution, as first reported and evaluated, is judged 
not to merit a supplemental award, as provided for in paragraphs (a), 
(b), (c), or (e) of this section, or the contribution is later proved 
to be of more significant value, it may be submitted for reevaluation 
on NASA Form 1329A. Responsible NASA and NASA contractor officials are 
encouraged to periodically review such reported contributions, and to 
resubmit them for reconsideration through the same channels as 
originally reported.


Sec. 1240.106  Review and evaluation of contribution.

    (a) A contribution will be initially reviewed by the Board on the 
basis of the material submitted by the applicant under 
Sec. 1240.104(b).
    (b) If it is determined that the contribution has been used in a 
NASA program, or adopted or sponsored or supported by NASA, the 
contribution will be evaluated for its significant value in the conduct 
of aeronautical or space activity.
    (c) The Board will recommend an award for such contribution when, 
upon evaluation of its scientific and technical merits, it is 
determined to warrant an award of at least $500.


Sec. 1240.107  Notification by the Board.

    (a) With respect to each completed application where the Board has 
recommended to the Administrator the granting of an award, and the 
Administrator has approved such award, the Board will notify the 
applicant of the amount and terms of the award. In the case of NASA 
employees or employees of NASA contractors, such notification will 
normally be made through the appropriate NASA field installation 
representative.
    (b) Except for applications from NASA employees or employees of 
NASA contractors, where the Board does not propose to recommend to the 
Administrator the granting of an award, a notification will be provided 
which includes a brief statement of the reasons for such decision.


Sec. 1240.108  Reconsideration.

    (a) In those cases where the Board does not recommend an award, the 
applicant may, within such period as the Board may set but in no event 
less than 30 days from notification, request reconsideration of the 
Board's decision.
    (b) If reconsideration has been requested within the prescribed 
time, the applicant will, within 30 days from the date of the request 
for reconsideration, or within any other time as the Board may set, 
file its statement setting forth the issues, points, authorities, 
arguments, and any additional material on which it relies.
    (c) Upon filing of the reconsideration statement by the applicant, 
the case will be assigned for reconsideration by the Board upon the 
contents of the application, the record, and the reconsideration 
statement submitted by the applicant.
    (d) If after reconsideration, the Board again does not propose to 
recommend the granting of an award, the applicant, after such 
notification by the Board, may request an oral hearing within the time 
set by the Board.
    (e) An oral hearing without reconsideration may be granted upon 
determination of the Chairperson that good cause exists to do so.


Sec. 1240.109  Hearing procedure.

    (a) An Oral hearing held by the Board will be in accordance with 
the following procedures:
    (1) If the applicant requests a hearing within the time set in 
accordance with Sec. 1240.108(d) or (e), the Board will set a place and 
date for such hearing and notify the applicant.
    (2) The applicant may be represented by an attorney or any other 
appropriately designated person.
    (3) Hearings will be open to the public unless the applicant 
requests that a closed hearing be held.
    (4) Hearings may be held before the full membership of the Board or 
before any panel of Board members designated by the Chairperson.
    (5) Hearings will be conducted in an informal manner with the 
objective of providing the applicant with a full opportunity to present 
evidence and arguments in support of the application. Evidence may be 
presented through means of such witnesses, exhibits, and visual aids as 
are arranged for by the applicant. While proceedings will be ex parte, 
members of the Board and its counsel may address questions to witnesses 
called by the applicant, and the Board may, at its option, utilize the 
assistance and testimony of technical advisors or other experts.
    (6) Subject to the provisions of Sec. 1240.104(c)(2), the applicant 
will submit a copy of any exhibit or visual aid utilized unless 
otherwise directed by the Board. The Board may, at its discretion, 
arrange for a written transcript of the proceedings and a copy of such 
transcript will be made available by the recorder for purchase by the 
applicant.
    (7) No funds are available to defray traveling expenses or any 
other cost incurred by the applicant.


Sec. 1240.110  Recommendation to the Administrator.

    Upon a determination by the Board that a contribution merits an 
award, the Board will recommend to the Administrator or a designee the 
terms and conditions of the proposed award, including a specific amount 
and distribution thereof for any multiple contributors. The 
recommendation of the Board to the Administrator or designee will 
reflect the views of the majority of the Board members. Dissenting 
views may be transmitted with the majority opinion.


Sec. 1240.111  Release.

    Under subsection 306(b)(1) of the National Aeronautics and Space 
Act of 1958, as amended, no award will be made to an applicant unless 
the applicant submits a duly executed release, in a form specified by 
the Administrator, of all claims the applicant may have to receive any 
compensation (other than the award recommended) from the United States 
Government for use of the contribution or any element thereof at any 
time by or on behalf of the United States, or by or on behalf of any 
foreign government pursuant to any existing or future treaty or 
agreement with the United States, within the United States, or at any 
other place.


Sec. 1240.112  Presentation of awards.

    (a) Monetary awards and accompanying written acknowledgments to 
employees of NASA will be presented in a formal ceremony by the 
appropriate Official-in-Charge at the Headquarters Office, or by the 
Director of the cognizant field installation or designee.
    (b) Monetary awards and accompanying written acknowledgments to 
employees of NASA contractors will be forwarded to contractor officials 
for suitable presentation.


Sec. 1240.113  Financial accounting.

    (a) An Award Check Receipt (NHQ DIV Form 622), which accompanies 
the transmittal of each group of award

[[Page 31123]]

checks from the Board will be dated and signed by the responsible NASA 
Center representative and returned to the Board without delay.
    (b) Not later than December 10 of each year, the responsible field 
installation official will submit a report certifying that all award 
checks, which were issued and received by the field installation during 
the year, have been delivered to the proper employees of NASA and 
employees of NASA contractors. In the case of those checks that have 
not been delivered by December 10, the certification report will be 
accompanied by all undelivered checks and a brief explanation of the 
reasons for the failure to make delivery. This annual certification 
report is essential in order to ensure that income and withholding tax 
totals for all awardees are correct and complete at the close of each 
calendar year.


Sec. 1240.114  Delegation of authority.

    (a) The Associate Administrator for Aerospace Technology and the 
Chairperson, Inventions and Contributions Board, are delegated 
authority to execute grants of awards for significant scientific or 
technical contributions not exceeding $2,000 per contributor, when in 
accordance with the recommendation of the Board and in conformity with 
applicable law and regulations.
    (b) The Chairperson, Inventions and Contributions Board, is 
delegated authority to execute grants of initial awards upon the 
decision to file for a U.S. patent application, release software to 
qualified users, and/or upon approval to publish a selected NASA Tech 
Brief.
    (c) No redelegation is authorized except by virtue of succession.
    (d) The Chairperson, Inventions and Contributions Board, will 
ensure that feedback is provided so that the Administrator, through 
official channels, is immediately informed of significant actions, 
problems, or other matters of substance related to the exercise of the 
authority delegated in this section.

    Dated: May 2, 2002.
Sean O'Keefe,
Administrator.
[FR Doc. 02-11513 Filed 5-8-02; 8:45 am]
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