AI for Resilient Manufacturing NOFO.pdf

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NOTICE OF FUNDING OPPORTUNITY (NOFO)

ANNOUNCEMENT

Overview Information

Federal Agency Name: National Institute of Standards and Technology (NIST), United States Department of Commerce (DOC)

Program Name: Manufacturing USA

Funding Opportunity Announcement Title: FY2024 Manufacturing USA Institute – AI for Resilient Manufacturing

Funding Opportunity Announcement Type: Initial

Funding Opportunity Announcement Number: 2024-NIST-AI-MFGUSA-01

Assistance Listing Number(s): 11.619: Arrangements for Interdisciplinary Research Infrastructure

Funding Opportunity Purpose: This NIST Fiscal Year (FY) 2024 Manufacturing USA Institute other transaction notice of funding opportunity (NOFO) announcement is seeking proposals from eligible applicants to establish and operate a Manufacturing USA® institute focused on the use of Artificial Intelligence (AI) to increase the resilience of U.S. manufacturers. A proposed institute in this topic area will be considered for funding pursuant to this NOFO as long as it does not substantially duplicate the principal technical focus area(s) of existing federally funded institutes within Manufacturing USA network, or the technical focus area(s) identified within any in-progress Manufacturing USA institute funding opportunity announced by a Federal Agency.

Proposers should note that applications for product development and commercialization are not considered responsive to this NOFO and are excluded from consideration for funding. Proposers should also note that proposals focused on the use of AI for semiconductor manufacturing applications are not considered responsive to this NOFO and are excluded from consideration for funding. In this connection, NIST announced on February 1, 2024, plans to establish a Manufacturing USA institute focused on the use of Digital Twins for semiconductor manufacturing1 funded through the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act of 2022.2 Proposers interested in any future funding opportunities to support semiconductor manufacturing are advised to monitor www.CHIPS.gov for information.

Webinar Information Sessions: NIST will host an informational webinar to provide general information regarding this NOFO, offer general guidance on preparing applications, and answer questions. Additional information may be found in Section 8.2 of this document.

Proposers’ Day and Teaming Meeting(s): In addition to the informational webinar described above, NIST plans to host at least one in-person proposers’ day to facilitate awareness of the

1 https://www.federalregister.gov/documents/2024/02/01/2024-02025/chips-manufacturing-usa-institute 2 Public Law Number 1170167, Division A, codified at 15 U.S.C. § 4651.

2 | P a g e funding opportunity and provide a forum for organizations to identify prospective partners. The date(s) and location(s) for any meeting(s) will be posted no later than July 31, 2024 on the public website (https://www.nist.gov/oam/ai-resilient-manufacturing-institute-competition). See Section 8.2 of this document for additional information.

THIS WILL BE A TWO-STAGE COMPETITION: The application process under this NOFO consists of a concept paper stage and a full application proposal stage. Only the most highly rated concept papers will receive an invitation to submit a full application proposal. See Section 4 of this document for additional information.

First Stage - Concept Paper Due Date and Time: Concept papers must be received at Grants.gov no later than 11:59 p.m. Eastern Daylight Savings Time, September 30, 2024. See Section 4.3.2 of this document for additional information.

Second Stage - Full Application Proposal Invitation: Applicants with the most highly rated concept papers should expect to receive an invitation by November 10, 2024 to submit a full application proposal. Full applications will only be accepted from those applicants invited after the concept paper evaluation. Full application proposals (by invitation only) must be received at Grants.gov no later than 11:59 p.m. Eastern Standard Time, January 23, 2025.

See Section 4.3.3 of this document for additional information.

Applicants should be aware, and factor in their application submission planning, that the Grants.gov system closes periodically for routine maintenance. Applicants should visit Grants.gov for information on any scheduled closures as applications cannot be submitted when Grants.gov is closed.

Application Submission Address: Applications must be submitted using Grants.gov. See Table 1 below for key dates. Paper, facsimile, or email applications will not be accepted.

Table 1 NOFO Key Dates

Informational Webinar July 25, 2024, 2 pm

Proposers’ Day (Venue TBA) August 20, 2024

Concept Paper Due September 30, 2024

Proposal Invitation November 10, 2024

Full Proposal Due January 23, 2025 (approximate – deadline will be specified in the invitation to submit Full Proposals)

Selection Announcement On or about March 1, 2025

Anticipated Award On or about April 15, 2025

Eligibility: Eligibility for the program listed in this NOFO is open to: accredited institutions of higher education; non-profit organizations and for-profit organizations that are organized and operated https://www.nist.gov/oam/ai-resilient-manufacturing-institute-competition

3 | P a g e in the United States (including U.S. territories) with majority domestic ownership or control; and State, Tribal, local, and Territorial Governments.

For purposes of this NOFO, individuals and unincorporated sole proprietors are not eligible to apply under this NOFO. Foreign public entities and foreign organizations are not eligible to apply.

Federal agencies and Federally Funded Research and Development Centers are not eligible to apply under this NOFO. Existing Manufacturing USA institutes are not eligible to apply to this

NOFO.

Additional information regarding eligibility, including those for proposed subrecipients and other potential partners is found in Section 3 of this document.

Type of Award Instrument: NIST intends to use Other Transaction Authority (OTA) to enter into another transaction agreement with the recipient that is not a procurement contract, grant, lease, loan, or cooperative agreement, or a cooperative research and development agreement (CRADA).

See Section 2.1 of this document for additional information regarding the type of award agreement. While NIST intends to use OTA as the funding instrument for the award, NIST reserves the right to use another funding instrument such as a cooperative agreement to issue the award.

Estimated Program Funding: NIST anticipates funding up to $70 million ($70 M) over a five-year period, subject to the availability of federal funds, for the recipient to establish and operate a Manufacturing USA® institute focused on the use of AI to increase the resilience of U.S.

manufacturers. See Section 2.4 of this document for additional information pertaining to the funding for this program.

Cost-share Requirements: Non-federal cost-share is required. This program requires cost-share (financial support) from non-federal sources in an amount at least equal to the amount of federal funding over the lifetime of the award (i.e., 50% or more of the total funding for the Institute must come from non-federal sources). See Section 3.3 of this document for additional information.

Anticipated Number of Awards: NIST intends to make a single competitive award pursuant to the NOFO but reserves the right to make no award from this solicitation, subject to the merit of applications received and availability of funding.

Public Website, and Frequently Asked Questions (FAQs) and Webinar: NIST has a public website (https://www.nist.gov/oam/ai-resilient-manufacturing-institute-competition) that provides a “Frequently Asked Questions” page and other information pertaining to this NOFO, including date and time for an anticipated webinar and planned in-person teaming event(s).

NOFO Point of Contact (POC): Applicants must submit all questions concerning this NOFO in writing to Ms. Cheryl Leonard at ManufacturingUSA@nist.gov with “AI for Resilient Manufacturing” in the subject line. For additional information see Section 8.2 of this document.

ALL INQUIRIES REGARDING THIS NOFO MUST BE SUBMITTED TO THE ABOVE EMAIL ADDRESS.

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TABLE OF CONTENTS

1 PROGRAM DESCRIPTION

1.1 MANUFACTURING USA BACKGROUND INFORMATION

1.2 PROJECT DESCRIPTION

1.3 GENERAL ROLES FOR RECIPIENT AND NIST UNDER THIS AWARD

1.3.1 SUBSTANTIAL INVOLVEMENT

1.3.2 RESPONSIBILITIES OF AWARDEE

1.3.3 INVOLVEMENT OF NIST AS SPONSORING AGENCY

1.3.4 JOINT ACTIVITIES BETWEEN AWARDEE AND NIST

2 FEDERAL AWARD INFORMATION

2.1 FUNDING INSTRUMENT

2.2 FUNDING AVAILABILITY

2.3 MULTI-YEAR FUNDING POLICY

2.4 POSSIBILITY OF AWARD RENEWAL

2.5 INDIRECT FACILITIES AND ADMINISTRATIVE COSTS

2.6 RESEARCH SECURITY, DOMESTIC PRODUCTION, & INTELLECTUAL PROPERTY

2.6.1 RESEARCH SECURITY

2.6.2 DOMESTIC PRODUCTION

2.6.3 INTELLECTUAL PROPERTY MANAGEMENT

2.6.4 AI RISK MANAGEMENT

3 ELIGIBILITY INFORMATION

3.1 ELIGIBLE APPLICANTS

3.2 ELIGIBLE WORK LOCATION

3.3 REQUIRED COST SHARE

3.4 ELIGIBLE USES OF FEDERAL AND COST-SHARE FUNDS

4 APPLICATION AND SUBMISSION INFORMATION

4.1 OVERVIEW

4.2 APPLICATION PACKAGE

4.3 CONTENT AND FORMAT OF APPLICATION SUBMISSION

4.3.1 GENERAL GUIDANCE FOR PROPOSAL SUBMISSION

4.3.2 FIRST STAGE CONCEPT PAPER INSTRUCTIONS

4.3.3 SECOND STAGE FULL PROPOSAL INSTRUCTIONS

4.3.4 UNIQUE ENTITY IDENTIFIER AND SYSTEM FOR AWARD MANAGEMENT (SAM)

4.3.5 SUBMISSION DATES AND TIMES

4.3.6 INTERGOVERNMENTAL REVIEW

4.3.7 FUNDING RESTRICTIONS

4.3.8 OTHER SUBMISSION REQUIREMENTS

5 APPLICATION REVIEW INFORMATION

5.1 EVALUATION CRITERIA

5.1.1 CONCEPT PAPERS

5.1.2 FULL APPLICATION

5.1.3 SELECTION FACTORS

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5.1.4 REVIEW AND SELECTION PROCESS

5.1.5 ANTICIPATED ANNOUNCEMENT AND AWARD DATE

5.1.6 ADDITIONAL INFORMATION

6 FEDERAL AWARD ADMINISTRATION INFORMATION

6.1 FEDERAL AWARD NOTICES

6.2 ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS

6.2.1 TERMS AND CONDITIONS

6.2.2 AWARD NEGOTIATION AND MODIFICATION PROCESS

6.2.3 FUNDING AVAILABILITY AND LIMITATION OF LIABILITY

6.2.4 COLLABORATIONS WITH NIST AND OTHER FEDERAL AGENCIES

6.2.5 INVOLVEMENT OF FOREIGN ENTITIES

6.2.6 USE OF FEDERAL GOVERNMENT-OWNED INTELLECTUAL PROPERTY

6.2.7 EXPORT CONTROLS

6.3 REPORTING

6.3.1 REPORTING REQUIREMENTS

6.3.2 AUDIT REQUIREMENTS

7 AGENCY CONTACTS

8 OTHER INFORMATION

8.1 PERSONAL AND BUSINESS INFORMATION

8.2 PUBLIC WEBSITE

8.3 ACRONYMS AND ABBREVIATIONS

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Full Text Announcement

1 PROGRAM DESCRIPTION

Statutory Authority: The statutory authority for the new FY2024 Manufacturing USA Institute 15 U.S.C. 278s, as amended. NIST intends to use Other Transaction Authority (OTA) under 15 U.S.C.

272(b)(4) to enter into an Other Transaction (OT) Agreement that is not a procurement contract, grant, lease, loan, or cooperative agreement, or a cooperative research and development agreement (CRADA).

1.1 MANUFACTURING USA BACKGROUND INFORMATION

Substantive improvements in the health, robustness, and innovative capacity of the U.S.

manufacturing sector have an unrivaled ability to boost the nation’s global economic competitiveness. For the United States to remain a step ahead of the competition, a thriving cutting-edge manufacturing sector is needed. Manufacturing USA was launched to accelerate advanced manufacturing innovation to meet this need.

Statutory Purposes of Manufacturing USA. The purposes of Manufacturing USA as directed in 15 U.S.C. 278s(b)(2)3 are to:

a) improve the competitiveness of United States manufacturing and to increase the production of goods manufactured predominantly within the United States;

b) stimulate United States leadership in advanced manufacturing research, innovation, and technology;

c) facilitate the transition of innovative technologies into scalable, cost-effective, and high-performing manufacturing capabilities;

d) facilitate access by manufacturing enterprises to capital-intensive infrastructure, including high-performance electronics and computing, and the supply chains that enable these technologies;

e) accelerate the development of an advanced manufacturing workforce;

f) facilitate peer exchange of and the documentation of best practices in addressing advanced manufacturing challenges;

g) leverage non-federal sources of support to promote a stable and sustainable business model without the need for long-term federal funding;

h) create and preserve jobs; and

i) contribute to the development of regional innovation initiatives across the United States.

Manufacturing USA today. Manufacturing USA brings together industry, academia, and federal partners within a growing network of advanced manufacturing institutes to increase U.S.

manufacturing competitiveness and promote a robust and sustainable national manufacturing research and development (R&D) infrastructure. Manufacturing USA institutes fill the gap between

3 15 USC 278s: Manufacturing USA, Establishment of Manufacturing USA Program https://uscode.house.gov/view.xhtml?req=(title:15%20section:278s%20edition:prelim)

7 | P a g e basic research and commercialization, accelerate non-federal investment in advanced manufacturing production capacity in the U.S., and enable the commercial application of new technologies.

Manufacturing USA institutes are private-public partnerships that catalyze stakeholders to work together to accelerate innovation by co-investing in industrially relevant, cross-cutting advanced manufacturing products and processes. The institutes work on industry priorities and big challenges solvable only by collaboration. Applied R&D within the institutes is focused on moving technology from laboratory demonstration through manufacturing scale-up prior to commercial deployment, or through Manufacturing Readiness Levels (MRL)4 4 to 7.

Manufacturing USA institutes serve as regional and national hubs of advanced manufacturing excellence by:

1) Connecting the ecosystem to develop roadmaps, conduct collaborative applied research for maturing innovation to industrial readiness, and catalyze alignment between technology developers and U.S. manufacturers of all sizes - while protecting the proprietary interests of individual participants;

2) Preparing current and future workforces with skills needed to deploy innovative manufacturing methods and technologies; and

3) Providing a shared infrastructure and facilities as highly collaborative environments where institute members can demonstrate and test new manufacturing processes, and address qualifications and certifications needed to support technology transfer for commercialization.

Each institute interacts and engages with other national, regional, and local resources and facilities and with the broader Manufacturing USA network.

As of March 2024, seventeen institutes participate in Manufacturing USA, each established by a sponsoring Federal agency. The Department of Commerce has established one institute (NIIMBL), the Department of Defense has established nine institutes (AFFOA, AIM Photonics, America Makes, ARM, BioFabUSA, BioMADE, LIFT, MxD, and NextFlex), and the Department of Energy has established seven institutes (CESMII, CyManII, EPIXC, IACMI, PowerAmerica, RAPID, and REMADE).

The Department of Commerce announced in February 2024 the intention to establish a new Manufacturing USA institute focused on the use of digital twins for semiconductor manufacturing funded through the CHIPS for America Act5 that will further expand the Manufacturing USA network. The Advanced Manufacturing National Program Office housed within the Department of Commerce at NIST is tasked with coordinating the activities of the Manufacturing USA network.

4 https://www.manufacturingusa.com/studies/how-manufacturing-usa-institutes-innovate-reduce-ip-risks-pre-competitive-collaboration 5 https://www.federalregister.gov/documents/2024/02/01/2024-02025/chips-manufacturing-usa-institute

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Manufacturing USA exists to secure U.S. global leadership in advanced manufacturing. The nine federal agencies6 participating in Manufacturing USA bring a whole-of-government approach to innovation, one that springboards U.S.-based inventions to the forefront of advanced manufacturing technologies, created and utilized by a skilled American workforce. Information about Manufacturing USA and institutes participating in the network, along with links to published reports documenting program design and performance, can be found on the Manufacturing USA website.7

1.2 PROJECT DESCRIPTION

Purpose. This NOFO is a call for applications to establish and operate a Manufacturing USA institute focused on the use of artificial intelligence (AI) to strengthen the resilience of U.S.

manufacturers (referred to throughout this NOFO as the AI MFG USA institute). Through this competition, NIST expects to select an applicant or applicant team most capable of establishing and leading a public-private partnership that will integrate expertise in AI, manufacturing processes, and supply chain networks to conduct applied R&D projects that address industry-wide needs for innovation leading to greater resilience of manufacturing systems. The AI MFG USA institute is also expected to cultivate the development of a world-leading workforce needed to deploy institute-developed AI technologies into industrial use. The award will provide financial resources to establish the AI MFG USA institute, conduct startup activities and operate a national effort to accelerate manufacturing innovation and increase U.S. global competitiveness.

AI for Resilient Manufacturing Institute. Resilience may be defined as the ability of a given system to prepare for and adapt to unexpected events; to quickly adjust to sudden disruptive changes that negatively affect performance; to continue functioning during a disruption (sometimes referred to as “robustness”); and to recover quickly to its pre-disruption state or a more desirable state.8 Adoption of AI has the potential to strengthen resilience of U.S.

manufacturing through improvements in productivity and efficiency, job quality, worker safety and quality control systems, while reducing downtime for predictive maintenance, waste and defects.

AI adoption has the potential for efficient utilization of other digital technologies in optimizing product design and process flow, and energy management. Furthermore, adoption of AI technologies can drive greater resilience for manufacturing supply chain networks and increase visibility of domestic suppliers.

The institute funded pursuant to this NOFO will conduct applied R&D projects and establish employer-led sectoral partnerships to develop accessible, effective, scalable training resources and credentialling pathways for the skilled workforce needed to move innovation into industrial practice. The work of the institute will also support the growth of an AI service provision infrastructure that will provide focused AI solutions to manufacturers by leveraging manufacturing

6 The federal agencies engaged in Manufacturing USA are the three sponsoring agencies, U.S. Departments of Commerce, Energy, and Defense, plus the Departments of Agriculture, Education, Health and Human Services, and Labor, National Aeronautics and Space Administration, and the National Science Foundation.

7 https://www.manufacturingusa.com 8 Adapted from https://www.brookings.edu/articles/how-to-build-more-secure-resilient-next-gen-u-s-supply-chains/

9 | P a g e data at national scale. Through these initiatives, the work of the institute will boost resilience to the benefit of individual companies, workers, and the overall U.S. manufacturing base.

While the following list is illustrative in nature and not exhaustive, AI tools applied to use cases such as the following can boost resiliency within individual firms and the overall manufacturing sector:

• Rapid qualification. Qualification of new production technologies, facilities, or processes by potential customers can take years. AI-based analytics and predictive models can be used to quickly identify critical tests to perform, gauge dependencies and success probabilities of other tests, and assess likely operating conditions and boundary conditions. These methods help reduce the number of tests to perform and thereby shorten the path to qualification.

• Predictive maintenance of structures and equipment. In a high-volume manufacturing facility, equipment outage is a serious problem. AI-based advanced analytics and sensors can be used to analyze in real-time the stresses on critical equipment and structures, compare to past events, and predict the likelihood of an outage within a certain time period. This way, equipment can be serviced before failure, or operational parameters can be tuned to reduce stresses on equipment.

• Yield, energy, throughput, and quality (YETQ) optimization. Improving the operational productivity of the manufacturing process, such as reducing resource inputs (such as materials and energy), increasing throughput, or reducing defects in the process can be critical, particularly in industries with high resource intensity. AI can be used to learn current and target YETQ metrics and dynamically adjust process parameters for optimal outcomes.

• Working capital optimization. In fast-moving industries and those with long and complex supply chains where inventory costs can be high, having the “wrong” amount of inventory can be catastrophic to bottom lines. AI can be used to learn and predict the amount of inventory at each stage of the production process to optimize total working capital relative to demand trends and supply chain capacity.

• Supply chain risk prediction. Another critical aspect of supply chain resilience is a manufacturer’s ability to predict or be prepared for potential supply chain disruptions. AI-based analytics can identify potential disruptions based on natural disasters or other shocks by analyzing and correlating data from multiple sources. AI can also help size the potential disruptive effect on operations to help manufacturers prepare for events and guide the development of more resilient supply chain networks with decreased reliance on foreign suppliers.

Anticipated Impacts. Manufacturing USA Institutes funded by NIST will help fragmented U.S.

industries organize and develop a cohesive ecosystem to better position U.S. manufacturers relative to global competition. The AI MFG USA institute award will strengthen resilience of U.S.

manufacturers by accelerating applications of trusted AI technologies into industrial use. The institute will catalyze an effective advanced manufacturing applied research partnership and infrastructure that will develop, de-risk, and deploy AI tools to address industry-wide challenges too big for single entities to address in isolation. Within the institute, partners including industry of

10 | P a g e all sizes, academia, labor organizations, and government will work together to leverage resources, collaborate, and co-invest to nurture both manufacturing innovation and the workforce needed to deploy these technologies. The impact of focusing the institute on the use of AI technologies to increase resilience will ultimately lead to a domestic manufacturing base that is more agile, robust, and globally competitive.

This AI MFG USA Institute Competition. NIST expects to establish one institute through this competition with follow-on years of the award (discussed in following paragraph) subject to availability of funding. NIST reserves the right to change the number of awards or to not make an award from this competition, subject to the merit of applications received and the availability of federal funding.

Any institute award to be funded through this opportunity will cover both the startup phase and ongoing operations phases. Awards will be for an initial award period of performance of five-years. Subject to the availability of funding and completion of a rigorous merit review, NIST may choose to offer a renewal of the award to successful institutes following the initial five-year period of performance. The renewal9 may not exceed the five-year performance period of the original award.

The awardee must be prepared to develop solutions for cost-effective AI advanced manufacturing capabilities that offset the risk to the U.S. industrial base in adopting these new technologies using a collaborative approach between industry, academia, and government. The proposed AI MFG USA institute award recipient must manage the institute within three primary areas of operation:

1) advancement of technology development; 2) development of an educated and skilled workforce to support advanced manufacturing; and 3) development of shared infrastructure and facilities.

Applicants for this NOFO may choose a specific industrial sector of focus, or cluster of adjacent sectors, for the proposed AI MFG USA institute. Alternatively, applicants may choose to focus on cross-cutting tools that may be tailored for more than one industrial sector. Regardless of the applicant’s choice, a compelling U.S. industrial need and significant industry buy-in must be evident in the scope of the proposed institute. Furthermore, applicants are expected to define clear time-bounded deliverables for the scope of work planned within the AI institute proposed.

Applicants must bring together partners with the technical and workforce development expertise needed to accomplish the work proposed, as well as to provide the required 50% or more non-federal cost-share to match the federal award (see Section 3.3).

Applicants must also define the scope of the new institute to avoid substantive duplication with the scope and operations of the existing network of Manufacturing USA institutes,10 as well as the planned Commerce-sponsored Digital Twins institute for semiconductor manufacturing.11

9 15 U.S.C. § 278s(e)(2)(B)(i), https://uscode.house.gov/view.xhtml?req=(title:15%20section:278s%20edition:prelim) 10 https://manufacturingusa.com 11 https://www.federalregister.gov/documents/2024/02/01/2024-02025/chips-manufacturing-usa-institute

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The awardee selected from the upcoming competition is expected to lead the AI MFG USA institute partners in technical initiatives that promote ecosystem-wide benefits such as, but not limited to, the following:

• establishing a trusted manufacturing-centric AI data commons;

• developing standards for AI risk assessment tools;

• creating validated and interoperable AI manufacturing and/or supply chain network models;

• building shared testbeds to support the integration between software and hardware needed for deployment by U.S manufacturers; and/or

• supporting market transition of institute-developed technologies, ultimately supporting technology maturation into scale-up and industry use.

The awardee is also expected to lead the AI MFG USA institute in the establishment of employer-led sectoral partnerships12 that facilitate the skilled and enhanced workforce needed to deploy institute-developed AI technologies. Educational programs within the AI institute to be established are expected to increase access to industrially relevant curriculum and training resources, certification and credentialling pathways, and ensure equitable access to AI manufacturing careers.

It is expected that the awardee will apply the NIST’s Artificial Intelligence Risk Management Framework (AI RMF 1.0)13 as foundational guidance for the activities of the institute. It is also expected that the activities within the institute will be aligned with the principles in the Office of Science and Technology’s Blueprint for an AI Bill of Rights14 and the Department of Labor’s Principles for Artificial Intelligence and Worker Well-being.15

Promoting non-federal investment in advanced manufacturing R&D. A key concept of Manufacturing USA is that institutes are expected to leverage non-federal sources of support to promote a stable and sustainable business model without the need for long-term federal funding. Non-federal cost-share of an amount at least equal to the federal funding provided through this award is required over the lifetime of award (i.e., 50% or more of the total funding for the institute must come from non-federal sources). The AI Institute to be established is expected to develop realistic strategies to sustain the institute to mitigate the need for long-term federal base funding.

The 2019 amendments to Manufacturing USA’s authorizing statute provided an option for follow-on funding to Department of Commerce-sponsored institutes at the end of the initial funding period, subject to a rigorous merit review to assess whether the institute had made progress

12 https://www.eda.gov/funding/programs/american-rescue-plan/good-jobs-challenge/faq 13 https://tsapps.nist.gov/publication/get_pdf.cfm?pub_id=936225 14 https://www.whitehouse.gov/ostp/ai-bill-of-rights/ 15 https://www.dol.gov/general/AI-Principles https://www.whitehouse.gov/wp-content/uploads/2022/10/Blueprint-for-an-AI-Bill-of-Rights.pdf https://www.whitehouse.gov/wp-content/uploads/2022/10/Blueprint-for-an-AI-Bill-of-Rights.pdf https://www.dol.gov/general/AI-Principles https://www.dol.gov/general/AI-Principles

12 | P a g e towards standards for performance established for renewal.16 However, catalyzing non-federal investment in the applied research and development needs remains a critical component of an institute’s performance.

Institute Start-up. Award recipients will have a Startup Phase of up to one year from the start date of the OT agreement within which to complete all actions needed to begin ongoing institute operations. Activities that may occur within the AI MFG USA institute award during the Startup Phase include:

1) Finalizing a range of agreements, including membership, data management, and intellectual property;

2) Finalizing the internal systems and controls needed to oversee and manage the technical, business, financial, informational, operational, conflict of interest, and enterprise risks functions of the institute;

3) Finalizing the institute’s physical facility arrangements and taking occupancy to prepare for full institute operations;

4) Finalizing hiring of the identified leadership team and key personnel for operating the institute and its organization;

5) Gathering the committed known and anticipated cost-share from non-federal sources for the institute;

6) Finalizing risk assessment, risk mitigation, and research security policies and procedures for the technical, economic, and operational aspects of the proposed institute;

7) Finalizing plans for determining highest priorities for technical and workforce development investments; and

8) Developing impact and performance metrics framework.

9) Any other necessary start-up activities that are proposed by the recipient and approved in writing by NIST.

Ongoing Operations. The AI MFG USA institute’s required activities during the Ongoing Operations Phase are set forth in 15 U.S.C. § 278s(d)(2)(A) and include:

1) Performing industry-led, pre-competitive applied AI research, development, and demonstration projects;

2) Partnering across education and workforce development providers to address industry’s regional and national AI workforce priorities;

3) Developing initiatives to promote market transition for institute-developed technologies, including incorporating new technologies into manufacturing supply chain networks, as appropriate;

4) Promoting active participation in the institute by small and medium-sized manufacturing enterprises,17 including women, minority, and veteran owned manufacturing enterprises, and

16 15 U.S.C. § 278s(e)(2)(B)(i), https://uscode.house.gov/view.xhtml?req=(title:15%20section:278s%20edition:prelim) 17 https://www.nist.gov/mep

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“covered entities” set forth in 42 U.S.C. 18971,18 Expanding opportunities through the Manufacturing USA Program in addition to large manufacturing enterprises; and

5) Establishing a balanced institute funded portfolio of projects and strategic investments using existing or institute-developed technology roadmaps that will provide an effective national response to the challenges and opportunities in advanced manufacturing.

1.3 GENERAL ROLES FOR RECIPIENT AND NIST UNDER THIS AWARD

The below is a non-exhaustive summary of the general roles and responsibilities of the recipient and of NIST relative to funding provided pursuant to this NOFO. As discussed below in Section 2.1 of this document, NIST intends to use Other Transaction Authority (OTA) to enter into another transaction agreement for this program and the specific roles and responsibilities of the recipient and of NIST will be set forth in the OTA agreement to be entered into by the recipient and by NIST.

1.3.1 SUBSTANTIAL INVOLVEMENT

NIST intends that there will ongoing and substantial programmatic involvement with the recipient throughout the period of performance. Under this program, the purpose of NIST involvement is to support and stimulate the recipients' activities by involvement in and otherwise working jointly with the award recipients in a partnership role; NIST will not assume direction, prime responsibility, or a dominant role in the activities. Consistent with this concept, the dominant role and prime responsibility resides with the awardees for the program, although specific tasks and activities may be shared among the awardees and the NIST as defined below.

1.3.2 RESPONSIBILITIES OF AWARDEE

The award recipient is expected to provide core program infrastructure to support the work of the AI MFG USA institute, including primary responsibility for coordination, day-to-day management and oversight of program activities, financial transactions, reporting obligations and convening and governing the consortium to accomplish the technical and programmatic goals. The recipient is expected to partner with other entities according to member agreements established through subawards or enter contracts on behalf of the consortium to fill unmet needs and to increase participation in the institute by entities representing diverse constituencies across the innovation ecosystem. The recipient is expected to lead the consortium in road-mapping, strategic planning, and other activities as necessary to promote awareness, engagement and regional and national impacts aligned with program purposes.

The AI MFG USA institute formed through an award issued pursuant to the NOFO is expected to operate independently to carry out the functions needed, yet it is also expected to be a collaborative partner within the network of Manufacturing USA institutes to serve aligned objectives and the larger purposes of the program. The leadership team of

18 As defined in 42 U.S.C. 18971(b), covered entities include: Historically Black College or Universities (HBCUs), Tribal Colleges or Universities, Minority Serving Institutions, a minority business enterprise (as such term is defined in section 15 C.F.R. 1400.2), or a rural-serving institution of higher education (as such term is defined 20 U.S.C. 1161q).

14 | P a g e the institute is expected to participate to the extent possible in activities that inform policies and implementation of national strategies for advanced manufacturing innovation, including but not limited to, workshops, roundtables and summits convened by other federal agencies, the White House, or non-profit entities such as the National Academies of Science, Engineering and Medicine. The Director of the new institute established, or their designee, is expected to participate in the Manufacturing USA Leaders Council convened by NIST and the Institute Directors’ Council convened by the elected chairperson of that council. Institute leadership is also expected to participate fully in the NIST-convened annual Manufacturing USA network meeting to share best practices, new and emerging trends, and convene discussions around additional topics of importance.

The award recipient is expected to coordinate with the NIST Office of Advanced Manufacturing (OAM) in design and development for any collaborative project with federal agencies, including NIST laboratory programs prior to initiating such projects.

1.3.3 INVOLVEMENT OF NIST AS SPONSORING AGENCY

NIST involvement in the activities of the AI MFG USA institute will be through two primary interests: as sponsoring agency with programmatic and financial oversight for the award management and as an agency with scientific capabilities and mission interest in the activities of the institute. NIST expects that participation by NIST staff during the period of performance for this award will be above and beyond normal program stewardship associated with traditional financial assistance awards.

As the sponsoring agency, NIST will provide guidance and oversight for the design and development of the technical and education and workforce development portfolios of the AI MFG USA institute, including, as appropriate, in the definition of specific aims and approaches and metrics for tracking progress and impact. As appropriate, NIST subject matter experts will participate in planning, conducting, analyzing, and publishing results, interpretations, and conclusions of collaborative research studies conducted within the AI MFG USA institute. NIST will also facilitate engagement with federal agencies as appropriate to promote the shared interests of the institute and the U.S. government.

NIST will provide the recipient with guidance on requesting required approvals for membership of foreign-owned organizations, foreign work, issuance of waivers for required cost-share where statutorily permitted, and other issues of sensitivity as warranted as such issues may arise.

Within the agreement established pursuant to the NOFO, NIST will have access to research material and data sharing, and other outcomes of the AI MFG USA institute in accordance with the member agreements executed by other members of the consortium.

1.3.4 JOINT ACTIVITIES BETWEEN AWARDEE AND NIST

When the technical activities of the institute are aligned with NIST measurement science priorities, NIST may work collaboratively to contribute to project teams within the institute, 15 | P a g e organize and co-sponsor workshops or other conferences, contribute to joint publications, or conduct other activities aligned with mission of both entities, and/or with that of the NIST-sponsored U.S. AI Safety Institute consortium (AISIC).19 It is anticipated that decisions for collaborative research projects and information sharing opportunities will be reached by consensus between the award recipient and NIST subject matter experts on a case-by-case basis. NIST will work collaboratively with the recipient to communicate program impacts and respond to other requests for data from federal entities.

2 FEDERAL AWARD INFORMATION

2.1 FUNDING INSTRUMENT

NIST intends to use Other Transaction Authority (OTA) under 15 U.S.C. 272(b)(4), to enter into an Other Transaction (OT) Agreement that is not a procurement contract, grant, lease, loan, or cooperative agreement, or a cooperative research and development agreement (CRADA). Each OT Agreement is negotiated with the awardee and details the agreed-upon terms and conditions for that award. The complete terms and conditions of each OT Agreement issued under this NOFO are subject to negotiation and will be set forth in the agreement entered into between the NIST and the awardee. While NIST intends to use OTA as the funding instrument for the award, NIST reserves the right to use another funding instrument such as a cooperative agreement to issue the award.

The federal award information provided below is for informational purposes only and is intended to provide prospective applicants with an understanding of key terms and conditions that may differ from traditional NIST award mechanisms.

2.2 FUNDING AVAILABILITY

In Fiscal Year 2024, NIST anticipates funding one award for up to $70 million per award with an initial period of performance of five (5) years. See Table 2 below.

Table 2 Anticipated Federal Funding by Performance Year ($ in millions)

Performance Year 1 2 3 4 5 Total

Anticipated Federal Govt Funding Available

$14 $14 $14 $14 $14 $70

Non-Federal Government Cost-share (Minimum) $70 M

Total Program (Minimum) $140 M

19 https://www.nist.gov/artificial-intelligence/artificial-intelligence-safety-institute

16 | P a g e

2.3 MULTI-YEAR FUNDING POLICY

When a proposal for a multi-year award is approved, funding will generally be provided for the first year of the program and incrementally thereafter. If a project is selected for funding, NIST has no obligation to provide any additional funding in connection with that award. Continuation of an award to increase funding or extend the period of performance is at the sole discretion of NIST.

Continued funding of an award will be contingent upon satisfactory performance and the availability of funds. Workplans for project activities and the associated milestones will be negotiated with the NIST staff annually at a minimum.

2.4 POSSIBILITY OF AWARD RENEWAL

Awards issued pursuant to this NOFO are expected to be for five (5) years. In 2019, Manufacturing USA gained the authorization to non-competitively renew funding for Department of Commerce-sponsored institutes subject to a rigorous merit review. This merit review must assess whether the institute has made progress during the initial award towards standards for performance NIST has established for renewal.20 Any potential renewal award is subject to the outcome of the rigorous merit review as well as availability of funding and the assessment of NIST and the Department of Commerce as to whether there remains a compelling national need for the institute. A renewal may not exceed the five-year performance period of the original award. See 15 U.S.C. § 278s(e)(2)(B)(i).

2.5 INDIRECT FACILITIES AND ADMINISTRATIVE COSTS

NIST will reimburse applicants for proposed indirect facilities and administrative (F&A) costs in accordance with this subsection. Applicants with a current negotiated indirect cost rate may use up to their Federally approved indirect rate to budget indirect costs. Alternatively, applicants that do not have a current negotiated (including provisional) indirect cost rate may elect to charge a de minimis rate of 10 percent of modified total direct costs (MTDC). Applicants proposing indirect F&A costs must follow the application requirements set forth in Section 4.3.3.1.9 of this NOFO.

Post award, the AI MFG USA institute created through this NOFO is expected to develop sustainability strategies to mitigate the need for ongoing base federal funding. Accordingly, the awardee may choose to include as cost share the costs associated with preparing applications for mission aligned funding from federal agencies other than NIST, as well as from other funding organizations, rather than considering those costs as within the indirect F&A cost base supported by the awardee (see Section 3.3). Application costs treated as cost share may not be charged against federal funds or as indirect costs under the project.

2.6 RESEARCH SECURITY, DOMESTIC PRODUCTION, & INTELLECTUAL PROPERTY

Applicants for the AI MFG USA institute have considerable flexibility to propose institute concepts that strengthen manufacturing resilience through use of AI. Accordingly, NIST expects applicants to describe how the institute will address research security requirements, promote domestic production of institute developed technologies, manage IP and AI risks within the institute in a

20 Manufacturing USA Institute Evaluation: Renewal Process and Performance Standards (https://doi.org/10.6028/NIST.AMS.600-8) July 2021

17 | P a g e manner that is appropriate for the application space and industry sector(s) chosen. NIST will work with the awardee during the start-up phase and throughout the period of performance to develop and refine specific plans as needed.

2.6.1 RESEARCH SECURITY

2.6.1.1 Authorities

It is NIST policy to create a culture of personal and organizational responsibility where the practice and management of research and its products are free from undue influence and interference not essential to the practice of science, such as personal or social allegiances, beliefs, or interests. NIST adheres to the principle that U.S. research leadership benefits from mutually beneficial international collaborations, including welcoming international scientists, and that U.S. national and economic security depends on effective risk management practices for all research organizations to protect against foreign interference and exploitation.

Founded on the NIST core values of perseverance, integrity, inclusivity, and excellence, the NIST Research Security and Safeguarding International Science Team promotes mutually beneficial international engagement using a risk-based methodology to safeguard NIST research programs and intellectual property.

2.6.1.2 Research Security Definitions

Unless otherwise noted, the definitions for terms used in this section are found in the Appendix to Guidance for Implementing National Security Memorandum 33 (NSPM-33) on National Security Strategy for United States Government-Supported Research and Development issued by the National Science and Technology Council in January 2022 (NSTC NSPM-33 Guidance).

2.6.1.3 Authorities

In recent years, both Congress and the Executive Branch have focused on protecting the security of R&D conducted or funded by Federal agencies. On January 14, 2021, National Security Presidential Memorandum-33 (NSPM-33) was issued to “strengthen protections of United States Government-supported R&D against foreign government interference and exploitation.” NSPM-33 requires U.S. agencies that fund R&D to require the disclosure of information related to potential conflicts of interest and commitment from participants in the Federal R&D enterprise.

Under Section 223 of Division A, Title II of the William M. (Mac) Thornberry National Defense Authorization Act (NDAA) for Fiscal Year 2021 (FY21), (Pub. L. No 116–283, codified at 42 U.S.C. § 6605), “covered individuals” (see Section 2.6.1.5) must disclose the amount, type and source of all current and pending research support, which includes both monetary and non-monetary support, and certify that the disclosure is current, accurate, and complete as part of the application for an R&D award. In addition, covered

18 | P a g e individuals must agree to update disclosures, as required, before and during the term of the award.

Subtitle D of Title VI of the Research and Development, Competition, and Innovation Act, enacted along with the CHIPS and Science Act of 2022, codified at 42 U.S.C. § 19231 – 19237, also contained research security requirements. On February 14, 2024, the Office of Science and Technology Policy (OSTP) defined the term “foreign talent recruitment program” in issuing Guidelines for Federal Research Agencies Regarding Foreign Talent Recruitment Programs required under 42 U.S.C. § 19231(b).

2.6.1.4 Research Security Program

The awardee under this NOFO will be required to work with NIST to establish a Research Security Program during Institute Start-Up Phase. As one of the Forms and Documents Required in the Second Stage Full Proposal, Applicants must submit a plan to establish a Research Security Program (see Section 4.3.3.1.14). The plan should identify a member of applicant’s leadership team to serve as the point of contact responsible for coordinating with NIST on research security issues. The plan should further describe the Institute’s proposed internal processes or procedures to address cybersecurity, foreign talent recruitment programs (as referenced in Section 2.6.1.3), conflicts of commitment, conflicts of interest, research security training, and research integrity. In developing the plan, applicants should utilize the 2023 NIST Publication, Safeguarding International Science: Research Security Framework (NIST IR 8484), which provides 1) guidance on establishing a successful research security program; 2) background information related to research security generally; and 3) methodologies and requirements for an integrated, mission-focused, risk-balanced approach for safeguarding international science and technology. Upon review of the Research Security Program Plan, NIST may provide the applicant with feedback and an opportunity to refine the plan.

2.6.1.5 Covered Individuals

For the purposes here, the term “covered individual” is defined as “an individual who (1) contributes in a substantive, meaningful way to the scientific development or execution of a research and development project proposed to be carried out with a research and development award from a Federal research agency; and (2) is designated as a covered individual by the Federal research agency concerned,” as under 42 U.S.C. § 6605(d)(1).

Applicants must identify which individuals are covered individuals by listing them as “Senior/Key Personnel” in in Section 4.3.3.1.8.a., and provide a resume or CV for each such individual (see Section 4.3.3.1.7). Applicants must also complete the Current and Pending Support Forms required under Section 4.3.3.1.13.

Covered individuals should include the Institute Director, any identified principal investigators, co-investigators, and associate investigators and any individual listed under Section 4.3.3.1.7 by the applicant as “key personnel” or as a “Senior/Key Person” or for https://nvlpubs.nist.gov/nistpubs/ir/2023/NIST.IR.8484.pdf https://nvlpubs.nist.gov/nistpubs/ir/2023/NIST.IR.8484.pdf

19 | P a g e whom a resume or CV is provided. Personnel who participate only through isolated tasks that are incidental to the research (for example, setting up equipment or performing administrative functions) and those individuals who support research by executing discrete tasks as directed are not covered individuals.