(a) The fee base is that estimate of necessary allowable costs to which a fee percentage has been applied to determine the maximum fee allowances. It represents the cost of the production or R&D work to be performed, exclusive of the cost of source and special nuclear materials; estimated costs of land, buildings and facilities whether to be leased, purchased or constructed;

depreciation of Government facilities; and any estimate of effort for which a separate fee is to be negotiated.

(b) The fee base, in addition to the above adjustments, shall exclude:

(1) Estimated cost of capital equipment procured by subcontract;

(2) Estimated cost of Government-furnished materials, services and equipment;

(3) Estimated cost or price of subcontract(s) and other major procurements that distort the management efforts of the contractor;

(4) Other similar costs which are of such magnitude or nature as to distort the technical directions and management efforts actually required of the contractor;

(5) All estimates of costs not directly incurred by or reimbursed to the operating contractor;

(6) Estimates of home office or corporate general and administrative expenses that shall be reimbursed through the operating contract;

(7) Estimates of any independent research and development cost or bid and proposal expenses that may be approved under the operating contract.

(c) In calculating the fee base for application of the production schedule, the estimated cost of R&D work and of process development with which goes beyond the normal technical support required to insure continuity of operation shall be excluded. The maximum fee for such R&D and process development work is calculated separately, starting at the beginning of the R&D schedule.

(d) The schedules in this part are not intended to reflect compensation for unusual architectengineer or construction contracts. Such services shall be covered by special agreements based on the policies applying to architect-engineer or construction contracts. Fees paid for such services are in addition to the operating fees and are calculated using the provisions of that subpart relating to architect-engineer or construction fees.

(e) The fee schedules provide maximum fees payable assuming satisfactory contract performance. There may be times, for differing reasons, when it is deemed the applicable fee schedule does not adequately compensate the contractor. In such situations, if the circumstances should arise, consideration should be given to fees in excess of the fee schedules.

(f) Proposals to compensate a contractor in excess of the maximum fee schedules should be submitted to the Senior Procurement Official, Headquarters, Washington, D.C. Proposals should contain documentation and state specifically why the contractor is entitled to additional fees. (See also, §9-50.306–1(c).)

89-50.306-7 Special equipment purchases.

(a) Special equipment is sometimes procured in conjunction with operating or on-site service contracts. When an operating contractor procures special equipment, the DOE negotiating official shall determine separate fees for the equipment using the schedule in §9-18.307–50(e)(6).

(b) In determining appropriate fees to be paid, the DOE negotiating official should consider such factors as complexity of equipment, ratio of procurement transactions of volume of equipment to be purchased and completeness of services. Where possible, the reasonableness of the fees should be checked by their relationship to actual costs of comparable procurement services.

(c) The maximum allowable fee for such services shall not exceed the fee schedule set forth in 89-18.307-50 for such services as performed by construction contractors. The fee is based on the estimated price of the equipment being purchased.

(d) For purposes of this part, special equipment for which the purchase price is of such a magnitude compared to the cost of installation as to distort the amount of technical direction and management effort required of the contractor. The determination of specific items of equipment in

this category requires application of judgment and careful study of the circumstances involved for each project. This category of equipment would generally include items such as:

(1) Major items of prefabricated process or research equipment.

(2) Major items of preassembled equipment such as packaged boilers, generators, machine tools, and large electrical equipment. In some cases, it would also include special apparatus or devices such as reactor vessels and reactor charging machines.

89-50.306-8 Special considerations — award fee.

(a) If a management, operating and/or on-site service contract is to be awarded on a costplus-award fee basis, several special considerations are appropriate.

(b) In management, operating and on-site service contracts, the base fee portion of the fee objective should not normally exceed 50% of the otherwise applicable fixed fee. However, the base amount may range from 0 to 50% level of the fixed fee amount. In the event this 50% level is exceeded, appropriate documentation shall be entered into the contract file. In no event shall the base fee exceed 60% of the fixed fee amount.

(c) The base fee plus the amount included in award fee pool should normally not exceed the fixed fee (as subjectively determined or as developed from the fee schedule) by more than 50%. However, in the event the base fee is to be less than 50% of the fixed fee, the maximum potential award fee may be increased proportionately with the decreases in base fee amounts.

(d) The following maximum potential award fees shall apply in award fee contracts. [Percent is stated as percent of fee schedule amounts]

(e) Prior approval of the Senior Procurement Official, Headquarters is required for total fee (base plus award fee pool) exceeding the guidelines in paragraph (d), of this section. Additionally, in the event use of the award fee quidelines in paragraph (d) of this section, result in total fees which exceed or are expected to exceed the statutory limitations imposed by 10 U.S.C. 2306(d) and 41 U.S.C. 254(b), prior approval of the Senior Procurement Official, Headquarters shall be obtained.

Subpart 9-50.4 Special Types and Methods of Procurement

89-50.400 Scope of subpart.

This subpart implements and supplements the policies and procedures set forth in FPR Part 1-4 and DOE-PR Part 9-4, as these relate to operating contractors.

89-50.401 Public utilities.

The requirements of §9-4.4 and FPR 1-4.4 shall be applied to contractors that manage and operate Government-owned facilities, when such contractors are authorized pursuant to §9-4.406&751 to procure utility services.

89-50.402 Nuclear material transfers.

(a) Operating contractors and on-site service contractors, in preparing contracts or other agreements in which monetary payments or credits depend on the quantity and quality of nuclear materials, shall assure that each such contract or agreement contains a:

(1) Description of the material to be transferred;

(2) Provision specifying the method by which the quantities are to be measured and reported;

(3) Provision specifying the procedures to be used in resolving any differences arising as a result of such measurements;

(4) Provision providing for the use of an umpire to settle unresolved differences in the analytical samples; and

(5) Provision specifying in detail which party shall bear the costs of resolving a difference and what constitutes such costs.

(b) The provisions providing for resolution of measurement differences must be such that resolution is always accomplished, while at the same time minimizing any advantage one party may have over the other.

OMB CONTROL No.: 1901-0021.

Subpart 9-50.5 Special and Directed Sources of Supply

89-50.500 Scope of subpart.

Provisions of this subpart implement and supplement FPR Part 1-5 procurements by operating and on-site service contractors.

§9-50.501 Excess personal property.

Policies, procedures, and requirements of FPR Subpart 1-5.3 and DOE Property Management Regulation (PMR) 109-43 shall be applied.

§9-50.502 Interagency motor pool vehicles and related services.

Policies, procedures, and requirements of FPR Subpart 1-5.5 and PMR 109-39 shall be applied in authorizing contractors and subcontractors to use interagency motor pool vehicles and related services.

§9-50.503 Use of GSA supply sources. (FPR 1-5.9)

(a) Contractors should meet their requirements from GSA sources, if these sources are made available to them and if it is economically advantageous or otherwise in the best interest of the Government.

(b) Heads of Procuring Activities may authorize contractors' subcontractors with costreimbursement type subcontracts, where all higher-tier subcontracts are of cost-reimbursement types, to use General Services Administration (GSA) supply sources (i.e., items available through Federal Supply Schedule contracts and other GSA contracts and from GSA Stores Stock) in accordance with the requirements and procedures in FPR Subpart 1-5.9 and DOEPMR 109-26.2.

(c) Direct procurement by DOE, rather than by a contractor, shall be required where deemed necessary by the Heads of Procuring Activities in order to carry out special requirements of appropriation acts or other applicable laws relating to particular items.

(d) Contracting Officers, when reviewing the procurement systems and methods of those contractors that have been authorized to use GSA sources of supply, shall assure that provision is made for documenting the justification of procurements from commercial sources of items available from GSA sources of supply. The Senior Procurement Official, Headquarters, shall be informed of instances in which GSA sources of supply are not used because of the quality of the item available from GSA.

§9-50.504 Use of excess materials from General Services Administration inventories.

(a) It is the policy to comply with the provisions of the Federal Property Management Regulations Part 101-14, National Stockpile, as supplemented from time to time by FPMR Bulletins.

(b) Contracting Officers shall require their contractors which use strategic and critical materials, to fulfill their requirements through the use of the excess strategic and critical materials in the GSA inventories.

(c) General Services Adminstration (ANSD), Washington, DC, 20405, should be contacted directly for any detailed information concerning specifications, prices, and method of placing the order.

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