MAY 6 1997
It is strongly recommended that all proposed CRADAs be advertised in the
Federal Register. A sample advertisement is available electronically from G-SIR.
This gives all potential CRADA partners an opportunity to participate, removes any
appearance of favoritism, and limits the risk of future litigation by non-CRADA
Two issues normally associated with procurement contracts also apply to CRADAs.
The first issue concerns conflicts of interest. The FTTA requires that any agency
entering into CRADAs review its standards of conduct for its employees for resolving
potential conflicts of interest to make sure they adequately establish guidelines for
situations likely to arise through the use of CRADAs, including but not limited to cases
where present or former employees or their partners negotiate licenses or assignments of
titles to inventions or negotiate CRADAs with Federal agencies (including the agency
with which the employee involved is or was formerly employed). Commandant
Instruction M5370.8A, Standards of Conduct, and 5 CFR Part 2637, Regulations
Concerning Post Employment Conflict of Interest apply. The second issue addresses
preferential treatment for certain categories of potential CRADA partners. The FTTA
requires that when entering into CRADAs, special consideration be given to small
business firms/consortia; and that preference be given to business units located in the
U.S. which agree that products embodying inventions made under the CRADA or
produced through the use of such inventions will be manufactured substantially in the
United States and, in the case of any industrial organization or other person subject to
the control of a foreign company or government, take into account whether or not such
foreign government permits U.S. entities to enter into CRADAs and licensing
The authority to enter into CRADAs is delegated, upon application, by the Director of
Finance and Procurement (G-CFP) to the director (Commanding Officer) of a Coast
Guard Laboratory. The Director of Finance and Procurement (G-CFP) is the
designated disapproval authority for individual CRADAs, and retains the right, in
accordance with the terms of the FTTA, to disapprove or require modification to a
CRADA entered into by the director of a laboratory.
Protections for non-Federal CRADA parties' trade secrets or privileged or
confidential commercial or financial information.
The disclosure of a non-Federal CRADA partner's trade secrets or of
privileged or confidential commercial or financial information, which is
obtained as a result of research or other activities conducted pursuant to a
CRADA, is prohibited.
With respect to information that is developed as a result of the CRADA
process and that would constitute a trade secret or privileged or confidential
commercial or financial information if obtained from a non-Federal CRADA