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This section specifies the financial policies and guidelines upon which
Government assistance under this Program Opportunity Notice (PON) will be
1. AMOUNT OF COST-SHARING REQUIRED
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
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.
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
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 circum
stances which would amount to a transaction for the mere purpose
of responding to this PON.
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 con
tinuous use by the proposer during the entire calendar year 1984.
( See SECTION VI.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 VI.3, below).
Contributions in the form of foregone revenues or replacement
power costs will not be considered as cost-sharing.
Patents, proprietary data, or prior work will not be valued in
determining the proposer's cost participation in the cooperative
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.
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.
ALLOWABLE PROJECT COSTS FOR COST-SHARING PURPOSES
Cost participation by the proposer may be accomplished by a con
tribution of either direct or indirect costs provided such costs
are otherwise allowable in accordance with the cost
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.
o The value that will be allowed for contributions of currently
depreciating property and which are of relevance to the project proposed is the depreciation schedule which has been used and is allowed under statute or IRS regulations for the property. This depreciation will be limited in its cost-share value to the depreciation claimed during the life of the demonstration project.
contributed land will be valued at its fair rental value for the
period of the demonstration.
o Contributed land, equipment and facilities will be counted as cost
sharing only for the periods during which they are actually brought into use for this project. For example, that portion of a facility used for housing the design team may be credited as a cost-share during Phase I, but contributed equipment to be incorporated in
the construction may be credited as a cost-share only during those
portions of Phases II and III when actually utilized. Property that is owned by one of the participants and is made available to the project for the project period or any part thereof will be valued in accordance with the principles described above.
O Value for contributed equipment and facilities will be assigned
only to the extent that the facility or equipment is project
The cost of disposal of the facility and equipment is an allowable
cost under the final phase of the cooperative agreement.
In the event that doe and the offeror execute a cooperative agree
ment for a project selected for award under this PON, DOE will
recognize as an in-kind contribution the costs incurred to acquire
and deliver the environmental information generated by the proposer
during the time period between selection and the award of the
cooperative agreement. Only the information actually delivered
and accepted by DOE in an effort to satisfy the requirements of
the post-selection site-specific NEPA process (see Appendix J) will
be recognized for cost-sharing purposes.
Generation of environmental
information not delivered to, and/or not accepted by, DOE will be
considered as excess to the requirements for a site-specific NEPA
document and will not be recognized as a contribution under this
provision. Notwithstanding the above, for purposes of the prepara
tion of the cost proposal, the proposer must assume that all post
selection site specific NEPA process costs occur after award and
are shared in proportion to the overall cost-share ratio for Phase I.
REVENUES AND RECOVERY OF GOVERNMENT'S INVESTMENT
The Government intends to recover an amount up to the Government's
contribution to the project. This recovery will only be required
if revenues are received from the project, including subsequent
The recovery will be derived from the sum of
the following three sources: