The use of consortia as recipients for cooperative agreements is encouraged. Such arrangements tend to bring a broader range of capabilities and resources to the cooperative agreement. In addition, consortium members can better share the projects financial costs (e.g., the 50 percent recipient's cost share or other costs of performance).

NASA enters into an agreement with only one entity (as identified by the consortium members). (Also see § 1274.940.) The inclusion of non-profit or educational institutions, small businesses, or small disadvantaged businesses in the consortium could be particularly valuable in ensuring that the results of the consortium's activities are disseminated.

Key to the success of the cooperative agreement with a consortium is the consortium's Articles of Collaboration, which is a definitive description of the roles and responsibilities of the consortium's members. The Articles of Collaboration must designate a lead firm to represent the consortium and authority to sign on the consortium's behalf. It should also address to the extent appropriate—

Commitments of financial, personnel, facilities and other resources;

A detailed milestone chart of consortium activities;

Accounting requirements;

Subcontracting procedures;

Disputes;

Term of the agreement;

Insurance and liability issues;

Internal and external reporting requirements;

Management structure of the consortium;

Obligations of organizations withdrawing from the consortia;

Allocation of data and patent rights among the consortia members

Agreements, if any, to share existing technology and data;

The firm that is responsible for the completion of the consortium's responsibilities under the cooperative agreement and has the authority to commit the consortium and receive payments from NASA, and address employee policy or other personnel issues.

The consortium's charter or by-laws may be substituted for the Articles of Collaboration only if they are inclusive of all of the required information.

An outline of the Articles of Collaboration should be required as part of the proposal and evaluated during the source selection process. Articles of Collaboration do not become part of the resulting cooperative agreement.