On February 9, 2012, NASA issued a Grant Informational Circular (GIC 12-01) addressing funding restrictions with the People’s Republic of China. NASA reissued and clarified on September 26, 2012, (GIC 1201A) that this restriction is an affiliate-based restriction not a citizenship-based one.  

The funding restriction contained in NASA’s 2011 continuing resolution and NASA’s fiscal year 2012 appropriation bill specifically states:  “NASA is restricted…from entering into or funding any grant or cooperative agreement of any kind to  participate, collaborate, or coordinate bilaterally  in any way with China or any Chinese-owned company at the prime recipient level or at any subrecipient level,  whether funded or performed  under a no-exchange of funds arrangement.”

Although the restriction does not specifically define “China” or “Chinese-owned company,” NASA’s Procurement Information Circular 12-01A states that the terms mean the People’s Republic of China, any company owned by the People’s Republic of China, or any company incorporated under the laws of the People’s Republic of China.

This restriction applies to any NASA contract, grant, or cooperative agreement and all subrecepient agreements at any level.  Therefore, the restriction prohibits University of Houston from collaborating with or issuing a subaward to the Chinese government, any company owned by the Chinese government or any company incorporated under the laws of the People’s Republic of China.  This also includes using NASA funds for the U.S. side of a collaboration with these entities that is performed on a “no-exchange-of-funds” basis. The restrictions do not apply to commercial items of supply needed to perform a grant or cooperative agreement.

The restriction does not limit the use of NASA funds to support Chinese national students or visiting researchers. A NASA grants guidance document states participation by Chinese nationals will be reviewed by NASA grant and technical officers prior to awarding grants or cooperative agreements (including amendments), and the University will continue to monitor these developments to ensure no citizenship restrictions are accepted in violation of University policy.

Who does this affect?

This restriction affects all NASA projects with funds appropriated on or after April 25, 2011, and all future appropriated funds, on and/or off-campus within the U.S. or overseas, that involve any University of Houston (UH) faculty, staff, or students. 

What should I do?

The following assurance is required to be included in all UH proposals for NASA: “The proposer represents that the proposer is not China or a Chinese-owned company, and that the proposer will not participate, collaborate, or coordinate bilaterally with China or any Chinese-owned company, at the prime recipient level or at any subrecipient level, whether the bilateral involvement is funded or performed under a no-exchange of funds arrangement.” UH Awards and Subawards from NASA must include a similarly worded restriction regarding use of funds.

How should I comply?

The Office of Contracts and Grants will require all UH Principal Investigators and Researchers receiving current and new funds from NASA to complete a questionnaire, and execute an Assurance of Compliance form related to these requirements. OCG will then seek guidance from NASA to confirm the University’s compliance and that all required assurances have been ascertained.

What should I do if I have questions or concerns?

For questions or concerns, contact the Office of Contracts and Grants at (713) 743-1323.