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Cooperative Agreement (Appendix B) or attachments thereto, the

requirements of this Business and Management section, or any other

section of this PON not addressed in the Technical or Cost volumes.

Any exceptions, deviations, or conditional assumptions taken must

contain sufficient explanation and justification to permit evalua

tion. The benefit to the Government shall be explained for each

exception taken.

Such exceptions will not, of themselves, auto

matically cause a proposal to be termed unacceptable. A large

number of exceptions, or one or more significant exceptions not

providing benefit to the Government, however, may result in

rejection of your proposal as unacceptable.

4.

PREPARATION OF VOLUME IV: COST

4.1

General Instructions:

(a) INTRODUCTION

This is a "Cost-Sharing" cooperative agreement and the following

should be considered when developing the proposed costs for the

project. (Participant cost-sharing is the portion of the project

cost not borne by the Federal Government.)

The proposer is expected to identify all costs associated with the project from award to the end of the project. The proposer shall develop and must propose the costs in phases, by proposer's fiscal year (FY). The phases, as identified elsewhere in the PON, are Design and Permitting, Construction and Startup ("Shakedown"), and Operation, Data Collection, Reporting and Disposition. Phases or sub-phases already completed should not be included as a part of the cost proposal. Additional guidance is provided in SECTION 4.2, "Format and Content," below.

Project costs consist of all allowable costs (as set forth in the Applicable Federal Cost Principles) incurred by the recipient and the value of in-kind contributions made by the

proposer or third parties in accomplishing the objectives of

the project.

Once the total estimated costs for the project have been developed, the proposer is expected to develop a cost-sharing plan which identifies the proposed sharing ratio of the total proposed costs for the Government and for the proposer. The proposer is reminded that the Government's total share of the project costs is not to exceed 50 percent in each of the three

phases.

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The cost proposal will be evaluated to determine the appropriate

ness and reasonableness of the proposed cost and the evaluated

probable cost to the Government. The proposal will also be

used as the basis for any and all negotiations with the Government

if the project is selected for award.

The proposals, therefore,

should contain adequate, accurate, and well documented information

so the Government can understand how your proposed costs were

developed.

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All forms, tables, and exhibits submitted must be identified and listed in the table of contents or index. All pages, including forms, must be numbered.

(c) JOINT VENTURE/TEAM AGREEMENTS

If a joint venture or teaming arrangement is proposed, a complete set of Standard Form (SF) 1411 forms will be required for each team member, along with the supporting exhibits and

documentation.

(d) ROUNDING

Final monetary extensions should be expressed in whole dollars.

(e) DEFINITIONS

Federal Acquisition Regulations (FAR) Part 31, Contract Cost

Principles and Procedures, shall be the guide for definition of the cost elements.

(f) SUBCONTRACTS

For all subcontracts expected to exceed $500,000 the offeror

shall obtain and submit a complete set of SF 1411 forms,

along with the supporting exhibits and documentation, from

each subcontractor in this category.

For subcontracts under

$500,000, sufficient information must be submitted to enable

DOE to determine the accuracy of the proposed cost to the

Government.

(9) CERTIFIED COST OR PRICING DATA

Proposers may be required to certify, in accordance with Pub.

L. No. 87-653, that the cost or pricing data submitted are

accurate, complete and current. Any offeror required to

submit this certification shall be required, in accordance

with FAR 15.804-2, to submit, or arrange for the submission

of, accurate, complete, and current cost or pricing data from

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(a) SECTION ONE:

COST EXHIBITS

Proposers, subcontractors (over $500,000), and each team member,

if a teaming arrangement is proposed, must submit separate

Exhibits A through F as described below for their proposed tasks.

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