PART 9-15 CONTRACT COST PRINCIPLES AND PROCEDURES

89-15.000 Scope of part.

This part 9-15 implements and supplements FPR 1-15 which contains general cost principles and procedures for the pricing, negotation, and administration of contracts including subcontracts and contract modifications. The principles and procedures set forth in FPR 1-15 are mandatory, except as implemented and supplemented by specific DOE-PR provisions.

Subpart 9-15.1 Applicability.

49-15.101 Scope of subpart.

The cost principles and procedures contained in this subpart and FPR 1-15 apply to all negotiated procurements except for operating contracts for DOE-owned plants and laboratories, on-site service contracts, on-site construction contracts, and on-site architect-engineer contracts which are covered in 9-50.15.

89-15.103 Contracts with educational institutions.

The cost principles in FPR Subpart 1-15.3 shall be incorporated by reference or attachment in cost-reimbursement research contracts with educational institutions to which they are applicable. However, contracts with educational institutions for the operation of DOE-owned contractor-operated research laboratories are governed by the principles in subpart 9-50.15 and 9-50.704-13.

89-15.107 Advance understandings.

See 9-15.5006-4 for further guidance.

Subpart 9-15.2 Contracts with Commercial Organizations

89-15.205-3 Bidding costs.

A contractor's bid and proposal costs are allowable in accordance with the provisions in 89-15.205-35 of this Part 9-15.

89-15.205-6 Compensation for personal services.

(f) Deferred compensation.

(2)(ii)(1)(vii) The allowability of the cost of indemnification of the Pension Benefit Guaranty Corporation (PBGC), pursuant to Section 4062 or 4064 of the Employee Retirement Income Security Act of 1974 (ERISA), because of the termination of an employee deferred compensation plan will be considered on a case-by-case basis, providing that if insurance was required by the PBGC pursuant to Section 4023 of ERISA, it was so obtained, and the indemnification payment is not recoverable thereunder. Consideration under the foregoing circumstances will be primarily for the purpose of appraising the extent to which the indemnification payment is allocable to Government work; and if a beneficial or other equitable relationship exists, the Government will participate, provisions of 1-15.205-16(a)(3) and 1-15.205-16(b) notwithstanding, in the indemnification payment to the extent of its fair share. 89-15.205-16 Insurance and indemnification.

(c) Late premium payment charges related to employee deferred compensation plan insurance, incurred pursuant to Section 4007 or Section 4023 of the Employee Retirement Income Security Act of 1974, are unallowable.

89-15.205-30 Precontract costs.

See 9-15.5006-4 for further guidance.

89-15.205-35 Independent research and development (IR & D) and bid and proposal (B&P) costs (a) Definitions. For the purpose of this §9-15.205-35:

(1) The term "Independent research and development" (IR&D) means those research and development efforts which are not (i) sponsored by outside sources or (ii) required in performance of a contract, grant, or cooperative agreement.

(2) The term "Research" means:

(i) "Basic research" which is the systematic, intensive study directed toward greater knowledge and understanding of the subject studied; or

(ii) “Applied research" which is the systematic study directed specifically toward applying new knowledge to meet a potential or recognized need. As intended herein, attempts to determine and exploit the potential of scientific discoveries or improvements in technology, materials, processes, methods, devices, or techniques, and attempts to advance the state of the art are efforts of applied research.

(3) The term "Development" means the systematic application and use of scientific and technical knowledge directed toward the design, development, test, and evaluation of useful materials, devices, systems, and operations for potential new products or services or improvement in an existing product or service to meet specific requirements. It includes technology development, concept and demonstration development, and full-scale development, as follows:

(i) "Technology development" is the systematic application of knowledge toward proof of technology, including development of nonspecific application prototypes and processes.