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(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 and agreements with foreign educational institutions shall be assigned to the Chicago Operations Office.

(c) Any transfers of assignments between field offices should be accomplished when the particular agreement is next renewed or otherwise modified. At such time the agreement shall be renumbered in accordance with ERDA-PR 9-52.100.

$9-4.5106-7 Information to be furnished to field offices

The sponsoring program office shall provide the field office with an authorizing directive early enough (usually four weeks) to permit timely consummation of the agreement 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 instituion; and

(c) an authorizing directive (generally Form ERDA-799, Procurement Request) which:

(1) authorizes the execution of a specific type of agreement for a specified term, with ERDA 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 etimated cost of the research and other major aspects of the agreement, by reference to the proposal or otherwise;

(6) indicates whether title to property to be acquired under the agreement is to be vested in ERDA 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) give such additional information as may assist the field office in negotiating the agreement; and

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

$9-4.5106-8 Changes in scope and level.

After an agreement has been authorized by the program office but prior to execution of the agreement, the field office shall not approve any significant change in technical socpe, funding specified result, performance, principal investigator, or other major aspect of the work without prior approval of the program office.

$9-4.5106-9 Notification of agreement execution.

Promptly after execution of an agreement, the program office should be notified of such action.

$9-4.5107 General.

An outline of a standard form for special research support agreements for research performed in facilities owned or controlled by the contractor (as distinguished from Government-owned or Governmentcontrolled facilities), is set forth in 59-16.5002–1. This document is intended to provide a vehicle by which research tasks can be accom plished with a minimum of administrative effort. It is, therefore, important that such agreements 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 procurement of supplies and activities of a production nature. Wide latitude in the conduct of research by the institutions is generally desirable and the standard agreement forms are designed to per- . mit such latitude in the establishment of the rights and obligations of the parties,

$9-4.5107-1 Special research support agreements.

(a) The special research support agreement outlined in $9-16. 5002-1, is generally used for basic research with educational

institutions when the annual ERDA support under the agreement does not exceed $500,000. It provides that ERDA's monetary obligation will not 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 ERDA during the total period of the agreement are less than expected. The ceiling on ERDA's monetary support will be determined and established as a support ceiling at the outset of the initial agreement period, generally an annual period; the initial support ceiling will be the amount of ERDA support made available in connection with the initial agreement period.

(b) If the parties agree to extend the agreement for an additional period or periods of performance, the ceiling on ERDA's monetary support (support ceiling) would be increased to reflect any increased support by reason of the extended period or periods. The costs chargeable to ERDA (support cost) will be reported for each pertinent period of the agreement specified in Appendix A (generally an annual period) in accordance with paragraphs (b), (c), and (d) of this section, and the support cost determined for each such period will be accumulated for all periods of performance, as will the support ceiling.

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

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

(3) The contractor shall have the right to discontinue performance of research under the agreement, upon written notice to the contracting officer, at any time when or after the total costs chargeable to ERDA equal or exceed the support ceiling.

(4) Certain deviations in performance and other actions require the contracting officer's approval as stated in $9-4.5112-4; among other approval requirements, the contractor must obtain the contracting officer's approval to incur costs for items set forth in Article A-Il(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 costs to be borne by ERDA will be set forth in Article A-III of the agreement (see paragraph (d) of this section).

(c) The contractor will be required to furnish a certified statement (within three months after the expiration of the pertinent agreement period set forth in Appendix A and at the termination of or expiration of the agreement) signed by an authorized official showing the total cost, support cost, and contracting contribution, if any, for the prior agreement period. The format for this report is found in 59-16.5002-1, Append ix C.

(d) It is expected that in many cases the contractor will propose to contribute to the cost of the research work. Such contribution shall be set forth in Appendix A of the agreement, either as items under (b) or (c) of Article A-II which will be contributed solely by the contractor without charge to ERDA, or as a proportionate cost-sharing agreement in Article A-III which will provide that the contractor will charge ERDA only a specified percentage of the actual cost incurred for items under (a) of Article A-II.

(1) Proposed contractor contributions should ordinarily be listed under (b)(1) of Article A-II when: the contribution is the principal investigator or other senior personnel who are likely to be involved in the research work to the same extent whether their cost is included in or excluded from proportionate cost sharing; the proposed contribution to the work is being paid for by a third party, e.g., personnel or equipment the cost of which is being reimbursed under another contract or grant from public or private sources; and the proposed contribution does not involve any cash expenditure by the contractor.

(2) Only those items, the cost of which are to be charged to ERDA of proportionately shared by the parties, should be listed under Article A-II(a). Proportionate sharing of the cost of items under Article A-Il(a) should be provided for only when the contractor agrees to pay a specified percentage of the cost of all such items, and when such sharing is expected to be of financial benefit to ERDA.




(3) In those

in which there is to be proportionate cost-sharing, the contractor should generally be encouraged to tinue the same sharing ratio throughout the life of the agreement so

to provide for ease of administration and to avoid difficulties in determining proper charges to ERDA. When the contract provides for proportionate cost-sharing, it should be understood that ERDA will pay only the specified percentage of the actual cost of items under Article A-II(a) incurred during the pertinent period specified in Appendix A, up to a maximum of 110 percent of the estimated support

set forth in Article A-III for the pertinent period unless otherwise specifically approved by ERDA and subject to the support ceiling set forth in Article III:


(e) If the contractor proposes to contribute the cost of the principal investigator(s) on the project and requests that the contribution be excluded from A-II(b), the contributed time or effort should be shown in A-I1(c), the contractor would not be required to maintain records regarding the amount of effort contributed by the principal investigator, and the contractor would not be required to certify in accordance with Appendix c of the agreement regarding the amount of effort contributed by the principal investigator. The principal investigator may be included in Article A-II(a) for purposes of obtaining reimbursement of costs during the summer months, and excluded from Article A-11(a) for the academic year if the contractor proposes to contribute the costs for that period. The agreement generally will not require the contractor's commitment that any particular amount of time or effort by the principal investigator(s) or other personnel will be devoted to the work. In the event a proposed contractor contribution is included in Article A-11(b)(1), the agreement should reflect the nature and extent of the contractor's intent to contribute the item, and the contractor shall maintain records adequate to permit ERDA to determine the extent of the contribution. The contractor shall certify, in accordance with Appendix c of the agreement, the extent to which the item or items under Article A-II(b)(1) have been contributed. Government-owned property to be procured, fabricated, or furnished under Article IV or Article B-IX of the agreement and other Government-furnished equipment, supplies, materials, services should be excluded from Article A-11(a) and listed under Article A-11(b)(2).


(f) If the special research support agreement outlined in $9-16. 5002-1 is to be used for not-for-profit organizations other than educational institutions, Article B-XXI X, Determination of Support Cost, should be revised to provide that commercial cost principles ($9-15.2) will be used in determining actual cost, or the agreement may be revised at the direction of the cognizant headquarters office to provide for a lump-sum payment to the contractor in consideration for its performance of particular research at a specified level of effort.

(g) The special research support agreement outlined in $9-16. 5002-1 may also be used to support research at educational institutions in foreign countries; however, at the discretion of the cognizant headquarters or field office, the outline of $9-16.5002-1 may be revised to provide for a lump-sum payment to the foreign institution in consideration for its performance of particular research at specified level of effort, and to limit approval requirements to those consistent with the nature of the support to the foreign institution. All such agreements with foreign institutions should provide that any unused funds available to the foreign institutions at the end of the agreement shall be used in a renewel period, returned to ERDA, or otherwise disposed of, in accordance with ERDA instructions.


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