Initiative for Proliferation Prevention (IPP) Program

IPP Program Objective

The goal of the IPP program is to divert scientists, engineers and technicians in the Newly Independent States (NIS) of the former Soviet Union from activities related to Weapons of Mass Destruction (WMD) to peaceful research, development, and commercial activities. This nonproliferation program endeavors to create long-term, nonmilitary employment opportunities for former weapons researchers by developing high-technology spin-offs from these skilled scientists’ capabilities.

Funds Available and General Proposal Review Procedures

Argonne is among ten DOE labs participating in this program and developing new projects. Since its inception in 1994 Argonne has managed 45 projects in the NIS; currently there are about fifteen projects at Argonne in various stages of activity. [The DOE budget for the national program in fy04 is approximately $23M, the same as the fy03 funding level.]

IPP will only fund projects which deal with technology that is sufficiently mature that it would attract a commercial partner who is willing to collaborate on the development of a new business venture. IPP guidelines limit most projects to less than about $500k per year, with a multi-year, total project limit of $1.0M.

Congress has stipulated that the bulk of the DOE funds must be channeled through a subcontract to the NIS researchers, which leaves a relatively small amount (30% of the project funds) for in-house effort at Argonne. [All subcontracting services will be provided through DOE and either the International Science & Technology Center (ISTC) or the Civilian Research & Development Foundation (CRDF), and the costs of contract procurement will not be borne by Argonne's funds.] Note that the cost of scientific labor in the NIS is only $7k to $9k per man-year, so Argonne and the commercial partner can benefit from considerable NIS effort if the project is effectively managed. No DOE funds flow to the commercial partner associated with a project, but the partner works with the Argonne principal investigator to define the work plan, and the partner benefits from the work performed by the NIS institute and the Argonne staff. The commercial partner's interests and access to intellectual property are guaranteed by the terms of a CRADA arrangement.

The review procedure will provide an assessment of both the technical soundness and business potential of the proposal. After internal review and ranking at Argonne, the proposals are forwarded to the InterLaboratory Advisory Board (ILAB) and then to DOE, which in turn must submit the projects to an interagency review (Dept. of Commerce, State, etc.) to ascertain that the proposed work is consistent with US government policies. Inevitably the proposers will experience a many-month waiting period as the proposal moves through the review process. Successful projects have occasionally had further delays related to contract negotiation, export license applications, and/or receiving deliverables from the NIS partners.

Specific Selection Criteria

Successful proposals will employ WMD researchers from the NIS and lead to long-term commercial ventures which benefit from NIS technology, facilities, and expertise. These projects must provide benefits to the commercial partner (e.g., access to intellectual property, scientific/engineering facilities, valuable commodities or low-cost, highly-skilled labor), thereby attracting financing for possible future joint ventures.

 Requirements/characteristics of IPP projects:

1. Engage WMD researchers in one of four countries: Russia, Kazakstan, Ukraine, or Armenia.
2. DOE intends to fund primarily NIS researchers involved in nuclear-related institutes (many of them located in the closed "Nuclear Cities"), with the remainder targeted at chemical/biological warfare researchers and related areas such as delivery systems. In practice, IPP employs researchers mostly (80%) at institutes which were formerly under the Ministry of Atomic Energy and others under the Academy of Science and under Biopreparat.
3. The DOE funds must be split with approximately 70% of the funds going to the NIS; DOE/headquarters will procure the subcontract, with no procurement cost to the proposer.
4. DOE has arranged for invoiced payments to be transferred to the institutes in a manner which will allow the researchers in the NIS to receive tax-free compensation for their effort. The IPP program pays up to $35 per man-day of NIS effort, after allowing for overhead, travel, and other project expenses.
5. DOE funds must be matched by the commercial partner, and a Cooperative Research & Development Agreement (CRADA) between Argonne and the commercial partner must be signed. The commercial partner is likely to spend most of his funding in-house (effort in kind); but the IPP Program is encouraging the commercial partner to provide a modest cash payment to the national lab to help support project administration.
6. The commercial partner must join the United States Industrial Coalition Inc. (USIC), a nonprofit corporation organized to promote US industrial interests through the IPP program. Membership fees are $1000 for a two-year period for small businesses (less than $12M in annual revenues) and $5000 for one year for large businesses. Universities may also qualify as industrial participants.
7. A preliminary business plan/market analysis from the commercial partner must be submitted to USIC as part of the proposal.

Role of the Argonne PI

Due to the limited amount of funds to the lab, the Argonne researcher is urged to consider how a collaborative project with NIS personnel could supplement or amplify ongoing activities at Argonne. The challenge to the PI is to orchestrate a relatively large NIS effort (typically many full-time-equivalents) and to facilitate the commercial partner's access to a marketable technology. The PI negotiates the NIS contract work plan and monitors deliverables during performance of the project.

Instructions for Argonne Preproposals

To save the proposer’s time we are now soliciting a preproposal only. Please limit this to two pages (one page is preferable) and send it to Dave Ehst, Bldg. 315, Argonne National Laboratory, Argonne IL 60439 [phone: 630-252-4829; FAX: 630-252-7308; email: ]. Your brief project description should specify which NIS institute you wish to engage, if this is known. Preproposals will be accepted at any time.

Additional Resources

• More information about IPP and USIC is available on the web: http://ipp.lanl.gov and http://www.usic.net.
• Lists of priority NIS institutes for IPP projects can be made available.

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