Revision Date: August 27, 2025
Responsible Office: URA
What is a Corporate Sponsored Research Agreement?
A Corporate Sponsored Research Agreement is a written, legal agreement between UChicago as an academic and research institution, and a corporate entity that provides funding or in-kind support for research. Corporate sponsors commonly expect an economic benefit, such as access to cutting-edge science and technology, or other consideration in return for their financial support.
The for-profit nature of corporate sponsors makes issues like conflict of interest, intellectual property, and publications more complex. URA’s subject matter experts will work with you and the sponsor to ensure that these issues are handled appropriately.
Corporate sponsors have many names for these agreements: Collaboration Agreement, Memorandum of Understanding, Capstone Agreement, etc. Regardless of the name, when performing work with a for-profit entity (with the exception of Clinical Trial projects), the agreement falls into the general category of Corporate Sponsored Research.
Please note that a consulting or advising agreement does not fall into this scope. For more information regarding consulting or advising engagements, please consult this guide.
Submitting a Corporate Sponsored Research Agreement
To initiate a funded contract with a corporation, route the agreement document(s) through AURA Grants as a Funding Proposal (FP). This is necessary to manage the financial aspects of the project. Our subject matter experts will work with you to protect your rights as a PI during contract negotiations. The final contract will be recorded in AURA Agreements as a Funded Research Agreement (FRA).
Your submission should include a budget (more information on budgeting below), a layperson's description of the project, and a scope of work that can be incorporated into the contract.
Budgeting for Corporate Sponsored Research
As a non-profit, The University of Chicago needs to recover all costs related to its performance of research on behalf of other entities. These research contracts are typically budgeted in one of two ways:
- Cost-reimbursement budgets provide for payment of allowable incurred costs up to a maximum prescribed in the contract. In this case, sponsors may be willing to negotiate additional funds if project costs exceed the estimated budget.
- Fixed-Price budgets have set prices paid at certain scheduled milestones. No additional funding is available if project costs exceed estimates, so investigators should scope these projects carefully to ensure that all costs are covered.
- The University does not have an auditable mechanism to ensure compliance with Time & Materials or Labor Hours budget types.
We encourage departments to use the Non-Federal Budget Template, available on the Internal Budget Templates page, with corporate sponsors to simplify negotiations. This budget structure incorporates overhead (IDC) into each direct cost line, allowing us to present the sponsor with a budget model familiar to them.
Regardless of how the budget is structured, it should include the appropriate Indirect Cost rate (below) to ensure coverage of facilities and administrative costs that your department generates.
Please note that pre-spending on a Corporate Sponsored Agreement is high risk, especially without written authorization from an authorized company representative. UChicago investigators should refrain from such spending and are advised to consult with the assigned URA contract officer for assistance.
Indirect Costs (IDCs) for Corporate Sponsored Projects
It is the policy of the University to request full funding of indirect costs on all grant and contract proposals. The for-profit indirect cost rates are available at the University's Non-Federal Indirect Cost Rates page.
Engaging with Corporate Sponsors
The University seeks to promote collaboration with industry where we share research and educational interests. Our mission is to advance research and scientific discovery, and we welcome collaboration with industry partners that share this mission. If you are interested in exploring these possibilities prior to agreement stage, please reach out to the Corporate Engagement Office to be put in contact with a subject matter expert for corporate collaborations, or The Polsky Center, which is responsible for matters involving intellectual property and the licensing of intellectual property. These offices work closely together with URA to coordinate negotiations, ensuring corporate contracts guard the best interests of the University and its faculty.