917.7100 Scope of subpart.

This subpart sets forth policies and procedures applicable to the negotiation and administration of Headquarters-designated special research contracts for basic research with educational or other nonprofit institutions. These policies and procedures should also be followed for Headquarters-designated contracts for applied research with educational institutions and for educational and training activities with educational or other nonprofit institutions. The policy of reimbursing only DOE's share of actual costs up to a ceiling should be reflected in all contracts with educational institutions. The procedures in this subpart regarding acceptance of unsolicited proposals from educational institutions and use of the special research contracts may be used only when the annual DOE support does not exceed $1,000,000. If the annual DOE support exceeds $1,000,000, or a determination is made under the provisions of Pub. L. 95-224 that a grant or cooperative agreement is to be used as the instrument for providing support regardless of the dollar amount, then a special research contract may not be used. If the annual DOE support exceeds $1,000,000, and a contract is determined to be the instrument to provide such support, an appropriate type contract will be used in accordance with FAR 16, with clauses as prescribed in 952 and FAR 52 and the coverage of 917.7108.

917.7101 Definitions.

"Headquarters-designated contract" means a special research contract which results from an authorization to a field office from a Headquarters office to enter into or continue such a contract on the basis of an approved research proposal.

"Contractor" means the educational or nonprofit research organization which enters into a contract with DOE for the performance of specified research.

"Research proposal" means a request by or an unsolicited proposal as defined in FAR 15.501 from an institution for support of a research project, together with a detailed description of the project and its relationship to DOE's program, and detailed information as to background and experience of principal investigators, facilities, and environment of the institution, and cost and cost-sharing arrangements, if any.

The DOE, by statute, is permitted to participate in research programs that are related to atomic and other forms of energy.

917.7103 Research program objectives.

(a) Under sections 31 and 31a of the Atomic Energy Act of 1954, as amended, DOE is directed to exercise its powers in such manner as to ensure the continued conduct of research and training activities and to assist in the acquisition of an ever-expanding fund of theoretical and practical knowledge in the following fields:

(1) Nuclear processes;

(2) The theory and production of atomic energy, including processes, material, and devices related to such production;

(3) Utilization of special nuclear material and radioactive material for medical, biological, agricultural, health, or military purposes;

(4) Utilization of special nuclear materials, radioactive material, and processes entailed in the utilization or production of atomic energy or such material for all other purposes, including industrial and commercial uses, the generation of usable energy and the demonstration of advances in the commercial or industrial application of atomic energy;

(5) The protection of health and the promotion of safety during research and production activities; and

(6) the preservation and enhancement of a viable environment by dev

leoping more efficient methods to meet the nation's energy needs.

917.7104 Other objectives.

(a) Headquarters-designated special research contracts are entered into by negotiation under the authority of section 31c of the Atomic Energy Act of 1954 and section 302(c)(5) of the Federal Property and Administrative Services Act of 1949. In planning, negotiating, and administering such contracts, the objectives are to:

(1) Assure a continuing flow of new knowledge in fields related to the responsibilities of DOE;

(2) Respect the traditions of the contracting institution and encourage the quest for new knowledge without restrictions or scientific initiative, to the extent compatible with the laws and the protection of the public interest;

(3) Provide reasonable levels of support which will increase the national capability in energy fields and enable the contracting institution to strengthen its research programs in areas of interest to DOE; and

(4) Maintain effective contact with the scientific community so that:

(i) Scientists and students will be encouraged to expand their interests in fields of importance to DOE;

(ii) The scientific strength of the country can be brought to bear more effectively on DOE problems;

(iii) The DOE will be continuously aware of developments of value to its activities in the academic communities; and

(iv) An adequate supply of suitably trained scientists will be available for employment to meet energy program needs.

(b) The contractor is responsible for conducting the research and is expected to carry out the project or projects in a manner consistent with the agreed-upon objectives and requirements. These include the obligation to comply with applicable laws and regulations. The contractor is generally expected to follow its normal business practices and to use its existing accounting system.

917.7105 Unsolicited research proposals. Unsolicited proposals for DOE assistance may be initiated by scientists

917.7106-2 Responsibilities.

(a) The program office interested in particular research is responsible for evaluating the technical aspects of the proposals. The program office must determine that the proposal has sufficient technical merits and program value in comparison to other available proposals to justify providing support. This includes judgments as to the merit of the proposed research objectives, the probability of achieving the objective(s), the capabilities of the researchers, and how the proposals will specifically promote the objectives in 917.7103 and 917.7104. The program office also reviews the proposer's requested cost and other estimates to determine the reasonableness, the propriety, and the advisability of proceeding with the project. Specifically, Senior Program Officials or their designees at Headquarters are responsible for:

(1) Selecting and approving research proposals and determining the amount to be funded;

(2) Documenting the rationale for funding in accordance with (a) of this section;

(3) Assuring that the statement of work is clear and complete;

(4) Providing a copy of the documents prepared in (a)(2) and (3) to the field office;

(5) Reviewing the items in the proposal budget or itemized account of the proposed work, and, if necessary, requesting the assistance of the appropriate field office;

(6) Determining the ownership of property;

(7) Reviewing and following the technical progress of the work;

(8) Providing contractors with the technical guidance and direction as may be required to meet broad program objectives; and

(9) Keeping the field offices fully informed of technical correspondence and discussions with contractors that may have contractual or non-technical administrative implications.

(b) Field offices are responsible for the consummation of contracts with the institution in accordance with directives from the program office, and for administering and making payments under such contracts. Specifically, field offices are responsible for:

(1) Performing any necessary cost or price analysis, obtaining audit service when needed, and negotiation of budget and contract terms;

(2) Finalizing and executing the contract (where necessary, obtaining further instructions from the program office);

(3) Administering the contract in accordance with its terms and conditions and making payments thereunder; and (4) Providing technical and administrative assistance requested by program officials.

917.7106-3 Review of research proposals.

(a) If, in the judgment of the program office, an appraisal from representatives of the scientific community is required, reviewers may be selected on the basis of their familiarity with either the field of research or the competence of the investigator. See also 924.70.

(b) Occasionally, the program office may find it necessary to obtain additional information from the research institution or to visit the site. In some cases, the comments, assistance, or

participation of staff members of the appropriate field office will be request

ed.

(c) At the time it reviews a research proposal, the sponsoring program office shall review the prospective contractor's budget or itemized account of the proposed work and activities and the materials, equipment, and facilities involved, for the purpose of reaching mutual understanding of the estimated cost of the research and the other major aspects of the contemplated contract. Questions about the cost elements that required further investigation may be referred to the appropriate field office when the contract is authorized.

(d) When reviews are conducted by representatives who are not Government employees, the policies for avoidance of organizational conflicts of interest in 909.5 shall be followed.

917.7106-5 Notice of selection or rejection.

The program office shall notify the proposer of the decision to fund or reject the proposal. In the event of a decision to fund, this notification shall advise: (a) That the proposal has been selected for funding subject to completion of a satisfactory contract; (b) which field office will negotiate and execute the contract; and (c) that DOE assumes no obligation until a contract has been executed. A copy of the notice of acceptance or rejection shall be sent to the field office concerned. The notice shall indicate the basis for rejection and shall constitute DOE's record of action for the files. If the proposal is accepted, a justification shall be prepared in accordance with 917.7106-2.

917.7106-6 Selection of field office.

(a) When the program office has determined that a proposal shall be funded, a field office shall be requested to make the final arrangements with the institution concerned. Usually the field office geographically nearest to the research institution will be selected, but occasionally other factors such as existing contractual relationships and location of the research project will make the selection of some other field office desirable.

(b) Traineeship agreements under the nuclear science and engineering traineeship program are exempt from the policy in (a) and shall continue to be assigned to the Oak Ridge Operations Office. Research contracts with foreign educational institutions shall be assigned to the Chicago Operations Office.

(c) Any transfers of assignments between field offices will be accomplished when the particular contract is next renewed or otherwise modified.

917.7106-7 Information to be furnished to field office.

The sponsoring program office shall provide the Contracting Activity with an authorizing directive early enough (generally 60 days) to permit timely completion of the contract award before the work is scheduled to start. The following shall be furnished:

(a) A copy of the detailed proposal and any modifications;

(b) Copies of correspondence with the research institution that are pertinent to the completion of the negotiation or that have some specific significance as to the preliminary review of arrangements made with the institution; and

(c) An authorizing directive which: (1) Authorizes the execution of a special research of contract for a specified term, with DOE support limited to a specified amount or a specified percentage of costs up to a specified support ceiling;

(2) Summarizes the background of the proposal and any pertinent discussion not reflected in the papers attached to the memorandum;

(3) Indicates the extent to which the scope of the work proposed has been approved;

(4) Indicates the principal investigator and other necessary details;

(5) Determines the availability of legal authority to transfer title to property and indicates the total estimated cost of the research and other major aspects of the contract, by reference to the proposal or otherwise;

(6) Indicates whether title to property to be acquired under the contract is to be vested in DOE or the contractor; (7) Indicates whether restricted data or other classified information is likely to be used or developed in the course of the work and such classification and security determination as may be appropriate;

(8) Indicates directions for special reports, if any;

(9) Gives such additional information as may assist the field office in negotiating the contract; and

(10) Designates the appropriate organizational unit and individual in the program office that will have technical cognizance over the work under the contract.

effort. It is, therefore, important that such contracts be written so as to assure the complete understanding of the parties as to the job to be performed and the financial and administrative details connected therewith. Of special consideration is the nature of research contracting as contrasted to the acquisition of supplies and activities of a production nature. Wide latitude in the conduct of research by the institutions is generally desirable and the standard contract forms are designed to permit such latitude in the establishment of the rights and obligations of the parties.

917.7107-2 Financial requirements.

(a) The special research contract outlined in 917.7113, is generally used for basic research with educational institutions when the annual DOE support under the contract does not exceed $1,000,000. It provides that DOE's monetary obligations will be a specified amount, which is referred to as the support ceiling, or a lower adjusted amount (referred to as the cumulative support cost) if actual costs chargeable to DOE during the total period of the contract are less than expected. The ceiling on DOE's monetary support shall be determined and established as a support ceiling at the outset of the initial contract period.

(1) The total contract period of performance should be established based upon the estimated period of performance necessary to accomplish the research effort. If available funding is less than that needed to fully fund the effort, the available funding will be provided as the cumulative Government cost as defined at Article AIII(b) of 917.7113 with the remainder of the funding subject to the availability of funds.

(2) In such circumstances the standard Special Research Contract format provided at 917.7113 shall be revised at Article II, The Period for Performance, to indicate the period of time for which the available funding is estimated to suffice and at Article A-III to show the additional funding to be provided subject to the availability of funds.

(b) If the parties agree to extend the contract for an additional period or

periods of performance, the ceiling on the DOE's funding (Government ceiling) shall be increased to reflect any increased support by reason of the extended period or periods. The costs chargeable to the DOE (Government cost) will be reported for each pertinent period of the contract specified in Appendix A (generally an annual period) in accordance with paragraphs (b), (c), and (d) of this section, and the Government cost determined for each such period will be accumulated for all periods of performance, as will the Government ceiling.

(1) The monetary obligation to the contractor will not exceed the cumulative Government cost or the accumulated Government ceiling, whichever is less.

(2) Upon termination, or expiration of the total period of performance, the contractor must refund to DOE, or make such other disposition as the contracting officer may direct, any funds advanced in excess of the cumulative Government cost incurred under the contract. Payment shall be made in consideration of the contractor's performance of research activities described in the contract and in accordance with the provisions of the contract.

(3) The contractor shall have the right to discontinue performance of research under the contract, upon written notice to the contracting officer, at any time when or after the total costs chargeable to DOE equal or exceed the cumulative Government cost or the Government ceiling whichever is less.

(4) Certain deviations in performance and other actions require the contracting officer's approval as stated in 917.7113. Among other approval requirements, the contractor must obtain the contracting officer's approval to incur costs for items set forth in Article A-II(a), during the pertinent period stated in Appendix A, in excess of 110 percent of the total estimated cost specified in Article A-III for the specific period. In those cases in which there is to be proportionate sharing of costs, the percent of the cost to be borne by DOE will be set forth in Article A-III of the agreement (see paragraph (d) of this section).

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