Engineering Biology Sandbox Fund: statement of main terms (draft)
Updated 29 April 2025
The following are the minimum terms, as referred to in the eligibility criteria. Additional terms may be included by DSIT after the successful applicant has been selected.
The terms will include as a minimum:
1. The total amount of the funding, not in excess of [£X million].
2. The duration of the funding, with a funding period of [X] years.
3. Outcomes including but not limited to:
- the purpose of the Fund is to accelerate regulatory reforms for engineering biology-derived products and improve the quality of decision-making when assessing these projects. Outcomes of a sandbox should evidence this.
4. Funded activities which may be agreed between Department for Science, Innovation and Technology (DSIT) and a successful applicant which must be demonstrably connected with the following desirable activities:
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developing new thinking, new methods and/or generating new evidence to improve the speed of regulatory decision making and performance, benefitting businesses, innovators, investors and others in the engineering biology community
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research and development sandboxes that generate new learning by experimenting, taking risks and exploring:
- solutions for a regulatory issue faced by businesses, innovators or others; or
- proactive measure to better support businesses, innovators or other users;
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a short trial or pilot study of a new initiative to change a regulatory approach that can enhance support for businesses, innovators or other users
5. Ineligible expenditure, including but not limited to:
- expenditure that does not relate to the funded activities
- expenditure considered as business as usual work which is already covered within the regulator’s budget (this includes resource to conduct business as usual work)
- expenditure not included in the invoice or evidenced in the supporting documentation
- expenditure on activities not deemed relevant or necessary to the delivery of the sandbox or previously agreed - this will be at the discretion of DSIT
6. Events of default, including, where appropriate, but not limited to where:
- the funding recipient uses the funding for a purpose other than the funded activities or uses it for ineligible expenditure
- the funding recipient fails to comply with its obligations under the eventual funding agreement/memorandum of understanding
- there is a delay to the start of the delivery of the funded activities without a satisfactory explanation
- the future of the funded activities appears to DSIT to be in jeopardy
- the funding recipient is in the opinion of DSIT to be delivering the funded activities in a negligent manner (in this context negligence includes but is not limited to failing to prevent or report actual or anticipated fraud or corruption)
- the funding recipient receives funding from a third party which contravenes any terms related to match and/or duplicate funding, or from a third party with which association would be likely to bring the funded activities and/or DSIT into disrepute
- the funding recipient materially misleads DSIT either during the application process or during the delivery of the funded activities
- the grant recipient commits or has committed a prohibited act or fails to report a prohibited act to DSIT whether committed by the funding recipient, it’s representatives or an associated third party
- the funding recipient fails to act in accordance with the law, or acts dishonestly or negligently at any time during the term of the agreement and/or memorandum of understanding
- the funding recipient ceases to operate for any reason, becomes insolvent, or it is declared bankrupt, or it is placed into receivership, administration or liquidation, or a petition has been presented for its winding up, or it enters into any arrangement or composition for the benefit of its creditors, or it is unable to pay its debts as they fall due
- a competent authority requires any funding paid to be recovered by reason of a breach of Subsidy Control Law or the funding recipient fails to comply with the provisions of the exemption or scheme under Subsidy Control Law that applies to the funded activities and the funding and/or
- the funding recipient undergoes a change of control which DSIT reasonably considered will be detrimental to the funded activities.
7. Rights reserved for DSIT in relation to an event of default may include but are not limited to:
- giving the funding recipient an opportunity to remedy the event of default (if the event is in the opinion of DSIT, remediable)
- suspending or terminating the payment of the funding for such period as DSIT determines
- terminating the agreement
- reducing the maximum sum in which case the payment of the funding shall therefore be made in accordance with that reduced amount and notified to the funding recipient; and/or
- requiring the funding recipient to repay the authority the whole or any part of the amount of funding previously paid to the funding recipient. Such sums shall be recovered as a civil debt
- either party may terminate the agreement at any time by giving at least 3 months written notice
8. The funding recipient must appoint an accountable officer responsible for:
- maintaining oversight of the funding recipient’s use of the funding
- safeguarding, controlling and ensuring the efficient, economical and effective management of the funding
- advising the funding recipient on the discharge of its responsibilities under this agreement and under any subsequent variations agreed by the parties, or any guidance or other information notified by the authority
- ensuring that principles of probity, robust governance, transparency and value for money are maintained at all times in relation to the funding
- being responsible for signing the accounts relating to the funding, ensuring that they are properly prepared and presented and that proper accounting records are maintained in a form that complies with generally accepted accounting practices to which the funding recipient is subject; and ensuring that conflicts of interest are avoided
9. Reporting requirements, including but not limited to:
- monthly report on the progress and financial spend of your project, including an invoice of activities being claimed for and evidence you have delivered the agreed activities.
- working with DSIT’s independent evaluation partner to participate in the evaluation of the programme. This could include:
- providing monthly updates
- being contacted at intervals throughout the project
- providing project data and participating in interviews and/or surveys
- publishing a final report summarising your project and the lessons learned with key insights communicated to relevant stakeholders
10. Intellectual property rights
- Intellectual property in all IPR material developed by the funding recipient will be the property of the funding recipient.
- The funding recipient grants to DSIT a non-exclusive, irrevocable and royalty-free, sub-licensable, worldwide licence to use all IPR material for the purpose of ensuring delivery of the funded activities, and for the purpose of supporting other projects.
11. Insurance
The funding recipient will ensure, where appropriate, that it has and maintains at all times adequate insurance with an insurer of good repute to cover claims under the grant funding agreement/memorandum of understanding or any other claims or demands which may be brought or made against it by any person suffering any injury damage or loss in connection with the funded activities or the grant funding agreement/memorandum of understanding.
12. Compliance with environmental requirements and modern day slavery requirements
13. Subsidy control requirements, including but not limited to:
- the funding recipient administering the funding in a manner which complies with subsidy control law and the assessment made by HMG.
These terms are provided as the minimum conditions, however do not represent all terms which may be required to govern an award made on the basis of a successful application. DSIT will consider minor amendments to the terms at the stage where a successful applicant is identified. Amendments will be at the discretion of DSIT.