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plete, accurate, and sufficient to allow the Contracting Officer to determine a rate(s) for indirect costs. If the total approved budget will not exceed $100,000 or if the amount requested for indirect costs does not exceed $5,000, DOE may waive the requirement for negotiation of a rate and, in lieu thereof, provide a reasonable allowance for such costs.

(2) Indirect cost proposals shall be prepared and submitted in accordance with the applicable Federal cost principles and instructions from the cognizant agency or from DOE, as appropriate.

(3) If a subaward under an award or subaward provides for the payment of indirect costs, the recipient or subrecipient shall be responsible for negotiating appropriate indirect costs, using the cost principles applicable to the subrecipient or contractor, unless the subrecipient or contractor has negotiated an applicable rate directly with DOE or another Federal department or agency. DOE may review and audit the procedures a recipient or subrecipient uses in conducting indirect cost negotiations.

(c) Fee or profit. No increment above cost may be paid to a recipient or subrecipient under DOE award subaward, except for SBIR recipients as provided in $ 600.181(d)(3). A fee or profit may be paid to a contractor providing goods or services under a contract with a recipient or subrecipient. 8 600.128 Period of availability of

funds. Where a funding period is specified, a recipient may charge to the award only allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by DOE.

ards under awards and shall not impose additional requirements, unless specifically required by Federal statute or program regulations. The recipient may use its own property management standards and procedures provided it observes the provisions of $$ 600.131 through 600.137. 8600.131 Insurance coverage.

Recipients shall, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired with DOE funds as provided to property owned by the recipient. Federally-owned property need not be insured unless required by the terms and conditions of the award. $ 600.132 Real property.

Unless otherwise provided by statute or program regulations, the requirements concerning the use and disposition of real property acquired in whole or in part under awards are as follows.

(a) Title to real property shall vest in the recipient subject to the condition that the recipient shall use the real property for the authorized purpose of the project as long as it is needed and shall not encumber the property without approval of DOE.

(b) The recipient shall obtain written approval by DOE for the use of real property in other federally-sponsored projects when the recipient determines that the property is no longer needed for the purpose of the original project. Use in other projects shall be limited to those under federally-sponsored projects (i.e., awards) or programs that have purposes consistent with those authorized for support by DOE.

(c) When the real property is no longer needed as provided in paragraphs (a) and (b) of this section, the recipient shall request disposition instructions from DOE or its successor Federal awarding agency. DOE will give one or more of the following disposition instructions.

(1) The recipient may be permitted to retain title without further obligation to the Federal Government after it compensates the Federal Government for that percentage of the current fair market value of the property attributable to the Federal participation in the project.



Property Standards

8600.130 Purpose of property stand

ards. Sections 600.131 through 600.137 set forth uniform standards governing management and disposition of property furnished by the Federal Government or whose cost was charged to a project supported by a Federal award. Recipients shall observe these stand

(2) The recipient may be directed to 6306, DOE may so vest title to tangible sell the property under guidelines pro- personal property under a grant or covided by DOE and pay the Federal Gov- operative agreement for basic or apernment for that percentage of the cur- plied research in a nonprofit institurent fair market value of the property tion of higher education or in a nonattributable to the Federal participa- profit organization whose primary purtion in the project (after deducting ac- pose is conducting scientific research. tual and reasonable selling and fix-up Such property is "exempt property.expenses, if any, from the sales pro- Program regulations or the terms and ceeds). When the recipient is author- conditions of award may establish proized or required to sell the property, visions for vesting title to exempt proper sales procedures shall be estab- property. Should such conditions not lished that provide for competition to be established and the recipient has no the extent practicable and result in the need for the equipment, the recipient highest possible return.

shall request disposition instructions (3) The recipient may be directed to from DOE. If DOE does not issue distransfer title to the property to the position instructions within 120 calFederal Government or to an eligible endar days of receipt of the request, third party provided that, in such title to the property shall vest in the cases, the recipient shall be entitled to recipient without further obligation to compensation for its attributable per- the Federal Government. If, at the end centage of the current fair market of the project, DOE fails to issue disvalue of the property.

position instructions within 120 cal

endar days of the receipt of a final in$ 600.133 Federally-owned and exempt

ventory, title to the property shall vest property.

in the recipient without further obliga(a) Federally-owned property.

tion to the Federal Government. (1) Title to federally-owned property remains vested in the Federal Govern

8600.134 Equipment. ment. Recipients shall submit annually (a) Title to equipment acquired by a an inventory listing of federally-owned recipient with Federal funds shall vest property in their custody to DOE. Upon in the recipient, subject to conditions completion of the award or when the of this section. property is no longer needed, the recip (b) The recipient shall not use equip ient shall report the property to DOE ment acquired with Federal funds to for further Federal agency utilization. provide services to non-Federal outside

(2) If DOE has no further need for the organizations for a fee that is less than property, it shall be declared excess private companies charge for equivaand reported to the General Services lent services, unless specifically auAdministration, unless DOE has statu- thorized by Federal statute, for as long tory authority to dispose of the prop- as the Federal Government retains an erty by alternative methods (e.g., the interest in the equipment. authority provided by the Federal (c) The recipient shall use the equipTechnology Transfer Act (15 U.S.C. 3710 ment in the project or program for (1)) to donate research equipment to which it was acquired as long as neededucational and non-profit organiza- ed, whether or not the project or protions in accordance with E.O. 12821, gram continues to be supported by Fed"Improving Mathematics and Science eral funds and shall not encumber the Education in Support of the National property without approval of DOE. Education Goals.") Appropriate in- When no longer needed for the original structions shall be issued to the recipi- project or program, the recipient shall ent by DOE.

use the equipment in connection with (b) Ejempt property. When statutory its other federally-sponsored activities, authority exists, DOE may vest title to in the following order of priority: property acquired with Federal funds (1) Activities sponsored by DOE, then in the recipient without further obliga- (2) Activities sponsored by other Fedtion to the Federal Government and eral agencies. under conditions DOE considers appro- (d) During the time that equipment priate. For example, under 31 U.S.C. is used on the project or program for

which it was acquired, the recipient shall make it available for use on other projects or programs if such other use will not interfere with the work on the project or program for which the equip ment was originally acquired. First preference for such other use shall be given to other projects or programs sponsored by DOE that financed the equipment; second preference shall be given to projects or programs sponsored by other Federal awarding agencies. If the equipment is owned by the Federal Government, use on other activities not sponsored by the Federal Government shall be permissible if authorized by DOE. User charges shall be treated as program income.

(e) When acquiring replacement equipment, the recipient may use the equipment to be replaced as trade-in or sell the equipment and use the proceeds to offset the costs of the replacement equipment subject to the approval of DOE.

(1) The recipient's property management standards for equipment acquired with Federal funds and federally-owned equipment shall include all of the following.

(1) Equipment records shall be maintained accurately and shall include the following information.

(1) A description of the equipment.

(ii) Manufacturer's serial number, model number, Federal stock number, national stock number, or other identification number.

(iii) Source of the equipment, including the award number.

(iv) Whether title vests in the recipient or the Federal Government.

(v) Acquisition date (or date received, if the equipment was furnished by the Federal Government) and cost.

(vi) Information from which one can calculate the percentage of Federal participation in the cost of the equipment (not applicable to equipment furnished by the Federal Government).

(vii) Location and condition of the equipment and the date the information was reported.

(viii) Unit acquisition cost.

(ix) Ultimate disposition data, including date of disposal and sales price or the method used to determine current fair market value where a recipient compensates DOE for its share.

(2) Equipment owned by the Federal Government shall be identified to indicate Federal ownership.

(3) A physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years. Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference. The recipient shall, in connection with the inventory, verify the existence, current utilization, and continued need for the equipment.

(4) A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft of equipment shall be investigated and fully documented; if the equipment was owned by the Federal Government, the recipient shall promptly notify DOE.

(5) Adequate maintenance procedures shall be implemented to keep the equipment in good condition.

(6) Where the recipient is authorized or required to sell the equipment, proper sales procedures shall be established which provide for competition to the extent practicable and result in the highest possible return.

(8) When the recipient no longer needs the equipment, the equipment may be used for other activities in accordance with the following standards. Equipment with a current per-unit fair market value of less than $5000 may be retained, sold or otherwise disposed of with no further obligation to the awarding agency. For equipment with a current per unit fair market value of $5000 or more, the recipient may retain the equipment for other uses provided that compensation is made to the original Federal awarding agency or its successor. The amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the original project or program to the current fair market value of the equipment. If the recipient has no need for the equipment, the recipient shall request disposition instructions from DOE. DOE shall determine whether the equipment can be used to meet DOE's requirements. If no requirement exists within DOE, the (3) When DOE exercises its right to take title, the equipment shall be subject to the provisions for federallyowned equipment.

availability of the equipment shall be reported to the General Services Administration by DOE to determine whether a requirement for the equip ment exists in other Federal agencies. DOE will issue instructions to the recipient no later than 120 calendar days after the recipient's request and the following procedures shall govern.

(1) If so instructed or if disposition instructions are not issued within 120 calendar days after the recipient's request, the recipient shall sell the equipment and reimburse DOE an amount computed by applying to the sales proceeds the percentage of Federal participation in the cost of the original project or program. However, the recipient shall be permitted to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for the recipient's selling and handling expenses.

(2) If the recipient is instructed to ship the equipment elsewhere, the recipient shall be reimbursed by the Federal Government by an amount which is computed by applying the percentage of the recipient's participation in the cost of the original project or program to the current fair market value of the equipment, plus any reasonable shipping or interim storage costs incurred.

(3) If the recipient is instructed to otherwise dispose of the equipment, the recipient shall be reimbursed by DOE for such costs incurred in its disposition.

(h) DOE reserves the right, at the end of a project, to transfer the title to the Federal Government or to a third party named by DOE when such third party is otherwise eligible under existing statutes. Such transfer shall be subject to the following standards.

(1) The equipment shall be appropriately identified in the award or otherwise made known to the recipient in writing

(2) DOE shall issue disposition instructions within 120 calendar days after receipt of a final inventory. The final inventory shall list all equipment acquired with award funds and federally-owned equipment. If DOE fails to issue disposition instructions within the 120 calendar day period, the provisions of $600.134(8)(1) apply.

$ 600.135 Supplies and other expend

able property. (a) Title to supplies and other expendable property shall vest in the recipient upon acquisition. If there is a residual inventory of unused supplies exceeding $5000 in total aggregate value upon termination or completion of the project or program and the supplies are not needed for any other federally-sponsored project or program, the recipient shall retain the supplies for use on non-Federal sponsored activities or sell them, but shall, in either case, compensate the Federal Government for its share. The amount of compensation shall be computed in the same manner as for equipment.

(b) The recipient shall not use supplies acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by Federal statute as long as the Federal Government retains an interest in the supplies. 8600.136 Intangible property.

(a) The recipient may copyright any work that is subject to copyright and was developed, or for which ownership was purchased, under an award. DOE reserves a royalty-free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use the work for Federal purposes, and to authorize others to do so.

(b) Recipients are subject to applicable regulations governing patents and inventions, including government-wide regulations issued by the Department of Commerce at 37 CFR part 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements."

(c) DOE has the right to:

(1) Obtain, reproduce, publish or otherwise use the data first produced under an award.

(2) Authorize others to receive, repro- the responsible authority, without reduce, publish, or otherwise use such course to DOE regarding the settledata for Federal purposes.

ment and satisfaction of all contrac(d) Title to intangible property and tual and administrative issues arising debt instruments acquired under an out of procurements entered into in award or subaward vests upon acquisi- support of an award or other agreetion in the recipient. The recipient ment. This includes disputes, claims, shall use that property for the origi- protests of award, source evaluation or nally-authorized purpose, and the re- other matters of a contractual nature. cipient shall not encumber the prop- Matters concerning violation of statute erty without approval of DOE. When no are to be referred to such Federal, longer needed for the originally au

State or local authority as may have thorized purpose, disposition of the in- proper jurisdiction. tangible property shall occur in accordance with the provisions of $ 600.134(8).

8 600.142 Codes of conduct.

The recipient shall maintain written $ 600.137 Property trust relationship. standards of conduct governing the

Real property, equipment, intangible performance of its employees engaged property and debt instruments that are in the award and administration of acquired or improved with Federal contracts. No employee, officer, or funds shall be held in trust by the re- agent shall participate in the selection, cipient as trustee for the beneficiaries award, or administration of a contract of the project or program under which supported by Federal funds if a real or the property was acquired or improved. apparent conflict of interest would be Recipients shall record liens or other involved. Such a conflict would arise appropriate notices of record to indi- when the employee, officer, or agent, cate that personal or real property has

any member of his or her immediate been acquired or improved with Fed- family, his or her partner, or an orgaeral funds and that use and disposition nization which employs or is about to conditions apply to the property.

employ any of the parties indicated

herein, has a financial or other interest Procurement Standards

in the firm selected for an award. The

officers, employees, and agents of the 8600.140 Purpose of


recipient shall neither solicit nor acstandards.

cept gratuities, favors, or anything of Sections 600.141 through 600.148 set monetary value from contractors, or forth standards for use by recipients in parties to subagreements. However, reestablishing procedures for the pro- cipients may set standards for situacurement of supplies and other expend- tions in which the financial interest is able property, equipment, real property not substantial or the gift is an unsoand other services with Federal funds. licited item of nominal value. The These standards are furnished to en- standards of conduct shall provide for sure that such materials and services disciplinary actions to be applied for are obtained in an effective manner violations of such standards by offiand in compliance with the provisions cers, employees, or agents of the recip of applicable Federal statutes and ex- ient. ecutive orders. No additional procurement standards or requirements shall

$ 600.143 Competition. be imposed by DOE upon recipients, All procurement transactions shall unless specifically required by Federal be conducted in a manner to provide, statute or executive order or in accord- to the maximum extent practical, open ance with the deviation procedures of and free competition. The recipient $ 600.4.

shall be alert to organizational con

flicts of interest as well as noncompeti8600.141 Recipient responsibilities.

tive practices among contractors that The standards contained in this sec- may restrict or eliminate competition tion do not relieve the recipient of the or otherwise restrain trade. In order to contractual responsibilities arising ensure objective contractor performunder its contract(s). The recipient is ance and eliminate unfair competitive

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