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3.3

3.4

3.5

Cost Evaluation Criteria:

The cost proposal (Volume IW) will be evaluated in accordance with

the following criteria:

(a) The appropriateness and reasonableness of the proposed

Cost, and

(b) The evaluated probable cost to the Government, as determined

by DOE.

Relative Importance of Proposal Volumes:

The Technical Proposal (Volume II) is of significantly greater

importance than the Business and Management (Volume III) Proposal.

The Cost Proposal (Volume IW) is minimal; however, everything else

being equal, the Cost Proposal is very important.

Program Policy Factors:

Program policy factors are those factors that, while not appropriate indicators of a proposal's individual merit (e.g., technical excellence, proposer ability, and cost), are relevant

and essential to the process of choosing which of the proposal (s)

received and evaluated, taken together, will best achieve the program objectives and goals. The following program policy factors

will be considered:

(a) The desirability of selecting for support a group of projects that represent a diversity of methods, technical approaches,

or applications,

(b) The desirability of selecting for support a group of projects that would ensure that a broad cross section of the U.S. coal

resource base is utilized, both now and in the future, and

(c) The desirability of selecting for support a group of projects that represent a balance between the goals of expanding the

use of coal and minimizing environmental impacts.

SECTION VI – GOVERNMENT FINANCIAL PARTICIPATION

This section specifies the financial policies and guidelines upon which Government assistance under this Program Opportunity Notice (PON) will be

determined.

1. AMOUNT OF COST-SHARING REQUIRED

o DOE shall not finance more than 50 percent of the total costs of the project as estimated by DOE as of the date of award of financial assistance. In addition, cost-sharing by the offeror of at least 50 percent is required in each of the following phases: (1) Design and Permitting; (2) Construction and Startup ("Shakedown"); and

(3) Operation, Data Collection, Reporting, and Disposition.

o Costs will be shared between DOE and the participant on an "as

expended," dollar-for-dollar, basis (reconciled quarterly).

2. PROJECT COSTS NOT ALLOWED FOR COST-SHARING PURPOSES

o DOE shall not accept valuation for property sold, transferred, exchanged, or otherwise manipulated to acquire a new basis for depreciation purposes or to establish a rental value in circumstances which would amount to a transaction for the mere purpose

of responding to this PON.

o Revenues or royalties from operation or prospective operation of the project, including the period beyond that specified in the financial assistance agreement, or proceeds from the prospective sale of the assets of the project, or revenues or royalties from replication of the technology in future projects or plants, are

not to be considered cost-sharing.

o Property which has been fully depreciated will not receive any cost-sharing value except to the extent that it has been in continuous use by the proposer during the entire calendar year 1984.

(See SECTION WI.3, below.)

o Existing facilities, equipment, and supplies, or previously expended research or development funds are not cost-sharing for the purposes of this PON, except as amortized, depreciated, or expensed in normal business practice (see SECTION WI.3, below). Contributions in the form of foregone revenues or replacement

power costs will not be considered as cost-sharing.

o Patents, proprietary data, or prior work will not be valued in determining the proposer's cost participation in the cooperative

agreement project.

- 9 o Allowable costs which are absorbed by the proposer as its share of cost participation may not be charged directly or indirectly or may not have been charged directly or indirectly in the past to the Federal Government under other contracts, agreements, or grants. Additionally, other appropriated federal funds are not

cost-sharing for the purposes of this PON.

o Foregone fee or profit will not be considered in establishing the degree of cost participation. Fee or profit will not be paid to

the participant(s) under the cooperative agreement. 3. ALLOWABLE PROJECT COSTS FOR COST-SHARING PURPOSES

) o Cost participation by the proposer may be accomplished by a contribution of either direct or indirect costs provided such costs are otherwise allowable in accordance with the cost

principles applicable to the award.

o For property contributed to the project and which has been fully depreciated but was in continuous use during the entire calendar year 1984, a fair use value for the life of the project will be assigned by DOE. The fair use value will be the annual average depreciation used by the proposer as permitted under statute or

IRS regulations under which it was depreciated.

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