DOE O 522.1A Chg. 1 (LtdChg), Pricing of Departmental Materials and Services
To establish Department of Energy (DOE) requirements for prices and charges for materials and services that are sold or provided to non-DOE entities (e.g., other Federal agencies; the private sector; state, local, or foreign governments), either directly or through a Departmental site/facility management contract.
Supersedes:
DOE O 522.1A, Pricing of Departmental Materials and Services on Oct 28, 2024
Superseded By:
DOE O 522.1B, Pricing of Departmental Materials and Services on Aug 05, 2026
Version history and related documents
Superseded by
A newer version replaces this document.
- DOE O 522.1BPricing of Departmental Materials and Services (Aug 05, 2026)
Supersedes
Earlier documents this one replaced.
- DOE O 522.1APricing of Departmental Materials and Services (Oct 28, 2024)
Document text
Text extracted from the attached file. Refer to the original document for the authoritative version.
Section 1
AVAILABLE ONLINE AT: INITIATED BY:
www.directives.doe.gov Office of the Chief Financial Officer
U.S. Department of Energy ORDER
Washington, DC
Approved: 8-2-2018
Chg. 1 (LtdChg): 10-28-2024
SUBJECT: PRICING OF DEPARTMENTAL MATERIALS AND SERVICES
1. OBJECTIVE. To establish Department of Energy (DOE) requirements for prices and
charges for materials and services that are sold or provided to non-DOE entities (e.g.,
other Federal agencies; the private sector; state, local, or foreign governments), either
directly or through a Departmental site/facility management contract.
2. CANCELLATION. DOE 522.1, Pricing of Departmental Materials and Services, dated
November 3, 2004. Cancellation of an Order does not, by itself, modify or otherwise
affect any contractual obligation to comply with the Order. Canceled Orders that are
incorporated by reference in a contract remain in effect until the contract is modified to
delete reference to the requirements in the canceled Orders.
3. APPLICABILITY.
a. Departmental Elements. This Order applies to all DOE elements with exceptions
and special provisions noted.
b. The Administrator of NNSA will assure that NNSA employees and contractors
comply with their respective responsibilities under this directive. Nothing in this
Order/Notice will be construed to interfere with the NNSA Administrator’s
authority under section 3212(d) of Public Law (P.L.) 106-65 to establish
Administration-specific policies, unless disapproved by the Secretary.
c. Contractors. The term “contract” or “contractor” as used in this document
includes site/facility management contracts or contractors, all Management and
Operating (M&O) contracts or contractors, and any other contracts or contractors
that require the establishment of prices for materials and services provided to non-
DOE entities. Except for the equivalencies and exemptions in paragraph 4, the
Contractor Requirements Document (CRD) (Attachment 1) sets forth
requirements of this Order that apply to contracts that include the CRD. The
CRD must be included in all site/facility management contracts (including
management and operating contracts) and any other contracts that require the
establishment of prices for materials and services provided to non-DOE entities.
The cognizant Designated Financial Officers (DFOs) or equivalent officials
identified in paragraph 9.d., in consultation with the cognizant Head of
Contracting Activity (HCA), are responsible for notifying the contracting officer
of the contracts that are affected. Once notified, the contracting officer is
responsible for incorporating the CRD into each affected contract via the “Laws,
DOE O 522.1A
http://www.directives.doe.gov/
2 DOE O 522.1A
8-2-2018
Regulations, and DOE Directives” clause of the contract (DEAR 970.5204-2), or
via negotiation and modification, as appropriate.
4. EQUIVALENCIES AND EXEMPTIONS.
a. Equivalency. In accordance with the responsibilities and authorities assigned by
Executive Order 12344, codified at 50 U.S.C. sections 2406 and 2511, and to
ensure consistency throughout the joint Navy/DOE Naval Nuclear Propulsion
Program, the Deputy Administrator for Naval Reactors shall implement and
oversee requirements and practices pertaining to this directive for activities under
the Deputy Administrator for Naval Reactors’ cognizance, as deemed appropriate.
Section 2
b. Power Marketing Administrations. The power marketing and related activities of
the Bonneville, Southeastern, Southwestern, and Western Area Power
Administrations are exempt from the provisions of this Order when those
activities are carried out under rate making authority or other authorities unique to
the power marketing administrations.
(1) Other reimbursable work not covered by 4.a.(1) that is performed by the
power marketing administrations shall be priced at a rate that recovers all
direct costs incurred plus an equitable share of indirect costs as determined
by the cost accounting practices at the respective power marketing
administration.
(2) The Chief Financial Officers or equivalent officials of the power
marketing administrations shall ensure compliance with the Chief
Financial Officers Act of 1990 (CFO Act) requirements for biennial
pricing reviews. The power marketing administration CFOs or equivalent
officials shall provide biennial assurances to the Department’s Office of
the CFO that detail their assessments performed to satisfy the biennial
pricing review requirement. This includes an assurance that prices
charged for rate payers are in conformance with relevant CFO Act
requirements. Additionally, the power marketing administrations must
provide assessments demonstrating that the pricing of reimbursable work
not funded by rate payers meets full-cost recovery requirements.
(3) If a power marketing administration performs reimbursable work under
the authority of section 33 of the Atomic Energy Act of 1954 (Atomic
Energy Act) (42 U.S.C. §2053), the statute that established the Federal
Administrative Charge (42 U.S.C. § 7259a) will apply, and the power
marketing administration shall apply the Federal Administrative Charge to
such work in lieu of other charges for Federal administrative overhead,
depreciation, or imputed interest. Power marketing administration work
that is not performed under the Atomic Energy Act shall not include
assessment of the Federal Administrative Charge, and shall instead
calculate full-cost recovery in accordance with the cost accounting
practices at the respective power marketing administration.
DOE O 522.1A 3
8-2-2018
c. Exemptions. The general pricing policy does not apply when prices or charges
are otherwise established or prohibited by statute or regulation. Exemptions apply
to the specific pricing described below or any other situation governed by a
separate statute or regulation:
(1) Charges or other compensation for source material, special nuclear
material, and byproduct material, which are determined in accordance
with the Atomic Energy Act, as amended, 42 U.S.C. Chapter 23. Such
charges or other compensation are established by the cognizant DOE
official serving in a position requiring appointment by the President of the
United States with the advice and consent of the Senate.
(2) Prices for uranium inventory sales or transfers subject to the provisions of
42 U.S.C. § 2297h-10(d).
(3) Prices for processing information requests submitted under the Freedom of
Information and Privacy Acts established by 5 U.S.C. §552(a)(4)(A) and
10 C.F.R. § 1004.9.
(4) Prices for energy data and information provided by the Energy
Information Administration to the public in accordance with 42 U.S.C. §
7135(g).
(5) Prices for crude oil and related materials and services from the Strategic
Petroleum Reserve determined according to the provisions of 42 U.S.C. §
6241.
Section 3
(6) Prices for the sale of excess personal property under 41 C.F.R. § 102-
36.35.
(7) Fees and costs for the storage and disposal of radioactive waste, which are
determined in accordance with 42 U.S.C. § 10222.
(8) Prices for the sale of isotopes and related products and services, which are
governed by 42 U.S.C. § 2061 Note, “Isotope Production and Distribution
Program Fund.” The DOE Isotope Program separately sets the prices for
isotopes and related products and services.
(9) Royalty rates established by DOE contractors when the contractors have
title to the intellectual property that is being licensed.
(10) The sale and use of real property shall be executed by a DOE Certified
Realty Specialist in accordance with the appropriate statutory authority
and in compliance with DOE O 430.1C.
(11) Prices for goods or services provided by the Federal Energy Regulatory
Commission (FERC). FERC, as an independent regulatory commission,
sets and promulgates its prices in accordance with applicable laws and
4 DOE O 522.1A
8-2-2018
regulations (including 18 C.F.R. § 381) and ensures compliance with the
biennial pricing review requirements of the CFO Act.
(12) Transactions related to projects prosecuted in cooperation with other
agencies, Federal, State, private, or foreign under the authority of 42
U.S.C. § 7278.
(13) Intergovernmental Personnel Act Assignments, which are governed by
DOE M 321.1-1, Intergovernmental Personnel Act Assignments, dated 8-
24-00. The assignment of DOE site/facility management personnel to a
non-federal entity is not considered an Intergovernmental Personnel Act
Assignment.
(14) Work performed for the Department of the Navy as part of the joint
Navy/DOE Naval Nuclear Propulsion Program.
5. PRICING REQUIREMENTS.
a. General Pricing Policy.
(1) For research and other activities, including the provision of materials and
other services, provided to or performed for the benefit of non-DOE
entities, the Department will charge full cost as defined in 42 U.S.C. §
7259a. The statute sets out three required elements of pricing:
(a) Direct cost incurred;
(b) Indirect costs, including general and administrative expenses and
other allocated overheads such as Lab-Directed Research and
Development, incurred at any Departmental facility that performs
work on behalf of non-DOE entities; and
(c) A Federal Administrative Charge, which includes charges for
Federal administrative overhead, depreciation, and imputed
interest, and is not to exceed 3 percent of the direct and indirect
costs. DOE has set the Federal Administrative Charge at 1 percent
of these costs, effective for funding obligated for reimbursable
work on or after October 1, 2025, consistent with implementing
CFO transition guidance.
The Federal Administrative Charge applies to all work priced
under the General Pricing Policy unless an exception applies as
described in section 5.b. or 5.d. of this policy. Legacy pricing
exceptions to the Federal Administrative Charge not consistent
with sections 5.b and 5.d. of this order will no longer be applied to
funding obligated on or after October 1, 2025.
DOE O 522.1A 5
8-2-2018
(d) In no case will separate depreciation or imputed interest charges be
assessed on a non-DOE entity for materials or services. The
Federal Administrative Charge is intended to reimburse these costs
in addition to the cost of the Department’s Federal administrative
overhead, and the Department is statutorily prohibited from
assessing separate charges for depreciation or imputed interest.
Section 4
(2) Materials and services provided are those which the Department is
authorized to provide by law.
(3) The General Pricing Policy applies to work performed for all non-DOE
entities, including foreign governments, except as noted in the Exemptions
section of this Order (section 4.b.) and when a special pricing
consideration applies as noted in Section 6 of this Order.
(4) Application of the Federal Administrative Charge to work performed for
foreign governments satisfies the cost recovery requirements involving
Federal administrative overhead, depreciation, and imputed interest.
(5) For materials delivered from stock, the full-cost recovery price is the cost
of replacing the items or material, if the items or material can be replaced,
and the cost of packaging, shipping, preparation, and other ancillary costs
associated with providing items or material from stock. If the materials
cannot be replaced, additional pricing methods may include the market
value of the asset, market value of similar assets, or other appropriate
valuation methods that reimburse DOE for the fair value of the assets
transferred/sold and provide reasonable compensation to DOE.
(6) Materials that are excess to DOE requirements may be provided to other
Federal agencies at no cost, but the receiving agencies shall pay the cost of
transport or other ancillary costs if those costs exceed the cost of disposing
of the excess items or materials. Before transferring excess items and
materials to other agencies, DOE offices shall first ensure that no other
DOE office requires the items or materials. Disposition guidance for
excess materials, personal property is provided in DOE G 580.1-1A,
Personal Property, dated 6-9-15.
b. Pricing Exceptions for Assessing the Federal Administrative Charge.
(1) There are a limited number of exceptions to the requirement to assess the
1 percent Federal Administrative Charge for reimbursable work performed
for a non-DOE entity:
(a) Agreements with the following domestic entities: small business
concerns as defined by the Small Business Administration;
institutions of higher education; nonprofit entities; and State, local,
and tribal governments;
6 DOE O 522.1A
8-2-2018
(b) Work performed for the Department of Homeland Security;
(c) Work performed for the Department of the Navy as part of the
joint Navy/DOE Naval Nuclear Propulsion Program;
(d) Work performed by the Federal Energy Management Program for
services rendered to other Federal agencies under the authority of
42 U.S.C. § 8287; and
(e) Loan program fees established under 42 U.S.C. § 16512(h).
(2) Pricing exceptions are based on who the primary customer is regardless of
the source of funds. The primary customer is the entity that enters into a
reimbursable work agreement with the DOE.
(3) As needed, the Departmental Office of the CFO provides clarification
regarding reimbursable work agreements to which the Federal
Administrative Charge does not apply.
(4) The Federal Administrative Charge shall not be applied to reimbursable
work performed by the power marketing administrations if the work is
conducted under authorities outside of section 33 of the Atomic Energy
Act.
Section 5
c. Applicability of the Federal Administrative Charge to Cosponsored Work,
Cooperative Research and Development Agreements (CRADAs), Other
Technology Transfer Mechanisms, Agreements for Commercializing Technology
(ACT), and Federally funded ACT (FedACT). The Federal Administrative
Charge shall be assessed on all costs reimbursed by non-DOE entities, except as
noted in 5.b. above, including foreign governments, regardless of the level of
Departmental participation in funding the work effort. In-kind contributions are
not subject to the Federal Administrative Charge. The Federal Administrative
Charge shall be assessed on all costs reimbursed by non-DOE entities under
(ACT) and FedACT.
d. Other Pricing Exceptions. The Departmental Office of the CFO may approve
other exceptions to the general pricing policy because of unique circumstances
that are not anticipated by this pricing policy. Exceptions to application of the
Federal Administrative Charge must be approved by both the CFO and the
Secretary. Such exceptions must meet the following requirements:
(1) The request shall be approved by the cognizant DFO, the head of the
Departmental element, and the cognizant Undersecretary prior to
submission to the Departmental Office of the CFO for approval;
(2) The requested exception shall apply for a maximum of 4 years, with
recertification required after 2 years; and
DOE O 522.1A 7
8-2-2018
(3) The costs not recovered as a result of a request for pricing at less than full
cost must be funded entirely by the DOE organization/program requesting
the exemption using funds available for that purpose. The request for an
exception must provide an estimate of forgone revenue and detail the
budgetary impact for DOE.
6. ACTIVITIES REQUIRING SPECIAL PRICING CONSIDERATION.
a. Information Dissemination Products. Charges for information dissemination
products will be governed by Office of Management and Budget (OMB) Circular
A-130, Managing Federal Information as a Strategic Resource. Information
dissemination product means any recorded information, regardless of physical
form or characteristics, which is disseminated by an agency, or a contractor
thereof, to the public. Dissemination means the government-initiated distribution
of information to a nongovernment entity, including the public. The term
“dissemination,” as used within OMB Circular A-130, does not include
distribution limited to federal government employees, intra- or interagency use or
sharing of federal information, and responses to requests for agency records under
the Freedom of Information Act (5 U.S.C. § 552) or the Privacy Act (5 U.S.C. §
552a). In accordance with OMB Circular A-130, the Department shall avoid
charging fees or royalties for public information or establishing unnecessary
restrictions on the resale or re-dissemination of public information by the public.
Additionally, the Department shall not, unless specifically authorized by statute,
establish fees that exceed the cost of dissemination to the public, restrict or
regulate the use, resale, or re-dissemination of public information by the public, or
establish any mechanism that interferes with the timely and equitable availability
of public information to the public. No charge will be assessed for access to a
DOE public internet site.
Section 6
b. Foreign Research Reactor (FRR) Spent Nuclear Fuel (SNF) Acceptance Program.
Because this program supports the DOE nonproliferation mission, pricing at less
than full cost recovery was approved as published in Federal Register (FR) Notice
61 FR 26507, May 28, 1996; and 77 FR 4807, Jan. 31, 2012. Under this program,
DOE charges a fee for accepting, managing, storing, and disposing of FRR SNF
containing uranium that was enriched in the U.S. from high-income-economy
countries as identified in the World Bank Development Report. The fee for high-
income-economy countries does not include the costs of preparing the SNF for
shipment to the U.S. (e.g., inspection, documentation, and canning if necessary)
or shipping the SNF to the Department. Such costs are separately borne by high-
income-economy countries. DOE continues to pay the full cost of shipping,
receipt, and management of FRR SNF from other than high-income-economy
countries, including at-reactor preparation.
c. Support of Domestic Research Reactors under the Research Reactor Infrastructure
Program. The Research Reactor Infrastructure Program is authorized by section
31 of the Atomic Energy Act and supports the Department’s interest in research
and development of nuclear energy. Under this program, the Department is
8 DOE O 522.1A
8-2-2018
permitted to provide, at no charge, support and other services to participating
domestic research reactors. These activities include, but are not limited to, the
supply of nuclear fuel and disposal of DOE- owned spent nuclear fuel. When
reactor operations support both the DOE R&D mission and other commercial
applications, the reactor operators shall pay a share of the full cost of DOE
support that is proportional to use of the reactor for commercial purposes.
d. Access Permits. An access permit is a permit issued by DOE authorizing access
by the named party to Restricted Data applicable to civil uses of atomic energy in
accordance with the terms and conditions stated on the permit. DOE rules for
granting access permits can be found under 10 C.F.R. §725. Pricing for access
permits shall not follow the Department’s General Pricing Policy but instead shall
be consistent with the specific provisions of 10 C.F.R. §725, which includes
charges for services DOE may furnish in connection with the access permit (e.g.,
granting of personnel access authorizations, DOE consulting services, and
publication and reproduction of documents).
e. Museums and Exhibits. Unless there is specific authority to collect admission
fees, visitors to DOE museums and exhibits will not be charged for admission.
f. Departmental User Facilities.
(1) Designation of User Facilities that Warrant Special Pricing Consideration.
User facilities are those facilities managed and funded by a DOE Program
and operated with the express purpose of being available for research by a
broad community of qualified users on the basis of programmatic interest,
scientific merit of research proposals, technical feasibility, capability of
the experimental group, and availability of the resources required.
The term user facility includes, but is not limited to: (1) a user facility as
described in 42 U.S.C. §13503(a)(2); (2) a National Nuclear Security
Administration Defense Programs Technology Deployment Center/User
Facility; and (3) any other Departmental facility designated by the
Department as a user facility. Examples of Departmental user facilities
include accelerators, supercomputers, and x-ray light sources. User
facilities are not restricted to a particular type, technical discipline, or size.
Section 7
User facilities not specifically designated by statute must meet the
following criteria to be eligible for special pricing consideration (see
paragraphs 2 and 3 of this section):
(a) Designation of a Departmental facility as a user facility has been
approved by the cognizant Under Secretary;
(b) Full-cost recovery from non-DOE users is not required to pay the
full cost of operating the facility;
DOE O 522.1A 9
8-2-2018
(c) The designation of the user facility and its availability for research
is publicly disclosed to the research community;
(d) Arrangements for managing intellectual property generated
through use of the facility have been approved by the DOE
General Counsel and have been disclosed to potential users.
(2) Pricing for Non-Proprietary Research. Access to user facilities will be
authorized at no charge for non-proprietary research that is approved by
laboratory management, usually with the advice of a technical advisory
committee. The facility manager will determine which requests meet
those criteria and report periodically to the cognizant DOE Program
Office.
Classified research that can be shared in classified journals or classified
publications is considered to be non-proprietary for the purposes of this
policy.
Non-proprietary users may be charged for incremental costs incurred over
and above normal use of the facility at the discretion of the facility
manager. Such costs may include operating a facility outside of the
normal operating mode or schedule; unusual security, safety, or technical
arrangements; and consumables.
(3) Pricing for Proprietary Research. When a user facility is made available
for proprietary research, the user will be charged a fee that realizes full
cost recovery (see paragraph 5.a.), except as noted below.
During the build-out period (start-up) of a new user facility, proprietary
users may be charged a modified annual rate that is equivalent to the
estimated full-cost recovery rate for the year at the facility’s planned
practical capacity. Practical capacity is defined as the maximum units of
output that the available capacity can produce taking the normal stoppage
and interruptions into consideration. The modified rate shall be
recalculated annually to account for revised estimates of capacity,
operating costs, or other factors.
Proprietary users shall be charged for all incremental costs incurred over
and above normal use of the facility. Such costs may include operating a
facility outside of the normal operating mode or schedule; unusual
security, safety, or technical arrangements; and consumables.
g. Royalties for DOE-Owned Intellectual Property. Royalty rates are negotiated
between DOE and the licensee based on the parties’ assessments of the future
commercial value of the technology. The setting of royalty rates is not based on
the cost of developing the technology. Royalty rates shall be stipulated in the
DOE licensing agreement and approved as part of the licensing agreement.
10 DOE O 522.1A
8-2-2018
h. Services Provided to Other Federal Agencies by the Federal Energy Management
Program. The Assistant Secretary, Energy Efficiency and Renewable Energy,
shall establish prices and payment schedules for services provided by the program
to other Federal agencies. The established prices and payment schedules shall
consider the funding needs of the program and shall be informed by the cost
incurred by the program in providing those services. Per the authority of 42
U.S.C. § 8287d, pricing is not restricted to full-cost recovery.
Section 8
i. Loan Program Fees. The Director of the Loan Program Office shall establish and
promulgate fees for the loan program that are consistent with the requirements of
42 U.S.C. § 16512(h) and Section 1702(h) of the Energy Policy Act of 2005,
Public Law 109-58.
7. BIENNIAL PRICING REVIEWS.
a. Basic Requirement. The CFO Act (31 U.S.C. § 902) includes a requirement for a
biennial review of the Department’s “fees, royalties, rents, and other charges
imposed by the agency for services and other things of value it provides.” The
Departmental Office of the CFO oversees the biennial pricing review process that
is executed by all responsible Departmental organizations. The Departmental
Office of the CFO collects and reviews all pricing reviews conducted by
Departmental elements and assists DFOs and other responsible officials with
pricing issues.
Cognizant DFOs, or equivalent, and heads of Headquarters elements must
perform biennial reviews of prices for all materials and services that are under
their cognizance in accordance with the requirements of this Order. The
Departmental Office of the CFO may provide additional instructions as necessary
to clarify requirements for the reviews, highlight best practices, and address
deficiencies noted in past biennial review submissions.
b. Review Objectives. The review is intended to assess whether:
(1) Prices conform to the requirements of OMB Circular A-25, User Charges,
Departmental pricing policy, and relevant regulations and statutes;
(2) Adequate documentation exists for prices established for materials and
services; and
(3) Exceptions to the Department’s full cost recovery policy are limited only
to those specified in this Order.
c. Review Requirements.
(1) Review Scope. The scope of the review shall include the following:
(a) Sale of products;
DOE O 522.1A 11
8-2-2018
(b) Sale of nuclear or other materials;
(c) Rents and services;
(d) Fees;
(e) Strategic Partnership Projects;
(f) Cooperative Work Agreements;
(g) Cooperative Research and Development Agreements (CRADAs);
(h) Charging of royalties;
(i) Agreements for Commercializing Technology (ACT); and
(j) FedACT.
(2) Objectives and Methodology. A sample of reimbursable work performed
and/or sales of materials to non-DOE entities shall be assessed during the
biennial period. The review should be adequate to assess whether:
(a) Written procedures exist for developing cost estimates/budgets and
assigning costs to reimbursable work projects;
(b) Documentation supports billed invoices;
(c) Costs assigned to reimbursable work are in accordance with the
contractor's approved Cost Accounting Standards (CAS) disclosure
statement, if work is performed by a contractor;
(d) Exceptions to full-cost recovery requirements are limited to those
authorized in 4.b., Exemptions, and are correctly applied;
(e) The Federal Administrative Charge is applied unless an approved
exception applies;
(f) Any cost transfers or adjustments between separately-funded
projects or final cost objectives are proper;
(g) Royalty and patent invoices are consistent with the underlying
agreements; and
(h) Related-party transactions, including contractor payments for ACT
work performed, are consistent with Departmental full cost
recovery requirements.
(3) Report to the Office of the CFO. Biennial reviews and the associated
corrective action plans must be prepared and submitted to the CFO Office
12 DOE O 522.1A
8-2-2018
Section 9
of Finance and Accounting no later than March 31, 2020, and each
biennial period thereafter. The submission must include an assurance that
fees and rates for materials and services comply with OMB Circular A-25
and Departmental Pricing, with any necessary exemptions or disclosures
noted. Specific report requirements include:
(a) The name of the Federal site or field office performing the review
and the name of the laboratory and operating contractor, if
applicable;
(b) The time period covered by the review;
(c) The number of agreements subject to the DOE pricing policy and
revenue generated for each agreement during the past two fiscal
years;
(d) An overview of the review methodology and any decisions to limit
sampling or exclude items from the sample based on assessed risk
or materiality;
(e) Information on sampling methodology, including whether
sampling is statistical or judgmental, and the number of samples
tested;
(f) Documentation of any other audit, review, or assessment
performed or obtained to support the assurance;
(g) Identification of any exceptions or deficiencies identified;
(h) Updated information on corrective actions taken to address
deficiencies or issues identified in prior biennial pricing reviews;
(i) A root cause analysis of any deficiencies identified during the
current review and corrective action plan for those deficiencies,
including estimated completion dates for the corrective actions;
and
(j) An assurance that prices comply with OMB Circular A-25 and
DOE pricing policy, including the correct application of pricing
exceptions, with any qualifications noted. Any qualifications
affecting the assurance should be addressed by the submitted
corrective action plan.
d. Reliance on Outside Auditors or Reviewers. DFOs, or equivalent, and heads of
Headquarters elements may rely on outside auditors or reviewers, including
contractor internal auditors, when performing biennial reviews but need to
address in their assurance to the Departmental Office of the CFO (1) any
DOE O 522.1A 13
8-2-2018
qualifications or scope limitations with the audit or review, and (2) procedures
used to determine that the outside audit or review can be relied upon.
e. Corrective Action Plans. Cognizant DFOs, or equivalents, and heads of
Headquarters elements shall approve and maintain corrective action plans to
address any deficiencies identified through the biennial review. To perform this
function, cognizant DFOs may require contractors, or other organizations
responsible for the deficiencies to prepare and implement timely corrective action
plans to address any deficiencies identified through the biennial review.
f. Special Provisions.
(1) Sale of Oil from Strategic Petroleum Reserves (SPR). The Annual
Strategic Petroleum Reserve Report may be used by the Office of Fossil
Energy to satisfy the biennial pricing review requirement. The authority
for the SPR sales program is 42 U.S.C. § 6241. Sales are based on market
bid prices, with the Secretary of Energy given authority to determine if the
bids are appropriate. The Office of Fossil Energy shall provide the
Departmental Office of the CFO with a biennial assurance on pricing of
any sales from the SPR, or a statement that no sales have been made in the
biennial period, if applicable.
(2) Nuclear Waste Fund. 42 USC § 10222 provides specific provisions for
establishing the fees that are assessed to civilian nuclear power plants.
The fund is subject to an annual independent audit that satisfies the
biennial review requirement.
Section 10
(3) Uranium Enrichment Decontamination and Decommissioning (D&D)
Fund, Stockpile Management Transactions. The Office of Environmental
Management shall report biennially to the Departmental Office of the CFO
that the audit of the uranium stockpile management transactions showed
that they were priced in accordance with the provisions of 42 U.S.C. §
2297h-10(d). The annual independent audit of the Department's
consolidated financial statements involving the review of uranium
stockpile management transactions may be used by the Office of
Environmental Management to satisfy the biennial pricing review
requirement.
(4) Sale of Isotopes and Related Services. The annual cost review of the
Isotope Program may be used by the Office of Science to satisfy the
biennial pricing review requirement. In addition, the process of updating
the Isotope Program's current price list for isotopes satisfies the biennial
pricing review requirement. The Office of Science shall report biennially
to the Departmental Office of the CFO on cost reviews performed during
the biennial period that inform Isotope Program pricing decisions and an
assurance that prices charged are in accordance with Isotope Program
pricing policies.
14 DOE O 522.1A
8-2-2018
(5) Power Marketing Administration (PMA) Revenue. The PMAs may use
annual power repayment studies to satisfy the biennial pricing review
requirement for work funded by ratepayers. The CFOs, or equivalents, of
the power marketing administrations shall ensure compliance with the
CFO Act requirements for biennial pricing reviews. In addition to
providing the Departmental Office of the CFO assurance that prices
charged for ratepayers are in conformance with the CFO Act, the power
marketing administration CFOs, or equivalents, shall provide biennial
assurances to the Departmental Office of the CFO that detail the
assessments that have been performed to ensure prices for reimbursable
work not funded by rate payers meet the cost recovery requirements
applicable to the PMAs as specified in this Order.
(6) Loan Program Fees. The Director of the Loan Program Office shall
review program fees biennially and shall provide the Departmental Office
of the CFO with an assurance that current fees have been reviewed and are
consistent with 42 U.S.C. § 16512(h).
8. BILLING & FINANCING. Invoices for materials and services will be prepared and
issued promptly in accordance with the terms of contracts or agreements. Billing
procedures will follow the requirements in Chapter 8, “Receivables,” of the DOE
Financial Management Handbook. Additionally, offices will follow the financing
requirements in Chapter 13, “Reimbursable Work, Revenues, and Other Collections,” of
the DOE Financial Management Handbook.
9. RESPONSIBILITIES.
a. Office of the Chief Financial Officer.
(1) Develops and interprets DOE pricing policy.
(2) Approves requests to waive costs incurred on behalf of non-DOE entities
in accordance with the provisions of section 5.d. of this policy. The
Departmental Office of the CFO may refer a request to waive costs to the
Secretary if the request does not meet the requirements of section 5.d. For
pricing exception requests to the Federal Administrative Charge, the final
approval must be made by the Secretary.
(3) Oversees the biennial pricing review.
b. Heads of DOE Headquarters Organizations.
(1) Ensure prices for materials and services provided by organizations under
their cognizance are set in accordance with requirements of this Order.
Section 11
(2) Submit requests for waiver of costs incurred on behalf of non-DOE
entities to the Departmental Office of the CFO for approval in accordance
with the provisions of this Order.
DOE O 522.1A 15
8-2-2018
(3) Consult with the Departmental Office of the CFO on matters relating to
pricing and full cost recovery. When appropriate, submit proposals for
legislative changes on pricing matters to the Departmental Office of the
CFO for consideration in accordance with OMB Circular A-25.
(4) Ensure biennial reviews of prices for materials and services under their
cognizance are performed in accordance with the provisions of this Order.
c. Heads of Field Organizations.
(1) Ensure the policies, procedures, and reporting requirements contained in
this Order are followed.
(2) Develop and approve prices for materials and/or services when the prices
are based on full cost recovery.
(3) Disseminate new and revised prices and charges.
d. Cognizant Designated Financial Officers or Equivalent.
(1) Through the cognizant HCA, notify contracting officers when site/facility
management contracts are affected by requirements of this Order.
(2) Conduct the biennial pricing review for all materials and services provided
by facilities under their oversight responsibility in accordance with the
provisions of this Order and coordinate with the contracting officer to
ensure that the Department’s pricing policy is followed by DOE
site/facility management contractors and that pricing exceptions are
correctly applied.
(3) Support the site/facility management contractors and DOE contracting
officers on pricing matters.
(4) Reviews and concurs with exceptions to the general pricing policy prior to
submitting them to the Departmental Office of the CFO for approval.
e. Contracting Officers.
(1) After being notified that the requirements of this Order apply to
site/facility management or other contracts under their cognizance, ensure
that the Contractor Requirements Document (CRD) is incorporated into
affected site/facility management contracts in accordance with the “Laws,
Regulations, and DOE Directives” clause (DEAR 970.5204-2) or via
negotiation and modification, as appropriate.
(2) Works with the cognizant DFO to ensure that site/facility management
contractors price reimbursable work in accordance with Departmental
policy, as specified by this Order.
16 DOE O 522.1A
8-2-2018
(3) Works with the cognizant DFO to ensure that site/facility management
contractors address any issues identified by the biennial pricing reviews.
(4) Consults with the cognizant DFO or equivalent on pricing matters.
f. General. Authority and responsibility for establishing prices and charges for
materials or services being provided by DOE or through a DOE contractor to a
third party cannot be delegated to a non-DOE official.
10. REFERENCES.
a. 42 U.S.C. § 7259a, which provides specific authorities regarding the conduct of
research and other activities at Departmental facilities on behalf of non-DOE
persons and entities; and establishes a standard Federal Administrative Charge in
an amount not to exceed 3 percent to be applied to work performed on behalf of
these entities.
b. 31 U.S.C. § 902(a)(8) and DOE O 520.1A, Chief Financial Officer
Responsibilities, dated 11-21-06, which require biennial pricing reviews of the
fees, royalties, rents, and other charges for services and things of value the
Department provides.
Section 12
c. DOE O 534.1B, Accounting, dated 1-6-03, and the DOE Accounting Handbook,
which prescribe the requirements and responsibilities for the accounting and
financial management of DOE.
d. DOE O 481.1D, Strategic Partnership Projects [Formerly Known As Work For
Others (Non-Department of Energy Funded Work], dated 12-05-16, which
establishes policy, responsibilities, and procedures for authorizing and
administering non-DOE funded work performed under DOE contracts.
e. 31 U.S.C. § 1535 and 1536, which authorize agencies to place orders with other
Federal agencies when the head of the ordering agency determines it to be in the
best interest of the Government.
f. 31 U.S.C. § 9701, which establishes the requirements for selling services and
products.
g. 42 U.S.C. Chapter 23, which authorizes the Department to establish prices and
charges for materials and services sold or provided by the Department.
h. DOE M 321.1-1, Intergovernmental Personnel Act Assignments, dated 8-24-00.
i. OMB Circular A-25, Transmittal Memorandum #1, User Charges, dated 7-8-93,
which establishes Government policy of recovering full cost for services, goods or
resources and the basis for setting user charges and provides guidance for agency
implementation of charges and the disposition of collections.
DOE O 522.1A 17 (and 18)
8-2-2018
j. OMB Circular A-130, Managing Federal Information as a Strategic Resource,
dated 7-28-16, which establishes policy for pricing information dissemination
materials.
k. DOE G 580.1-1A, Personal Property, dated 6-9-15.
11. CONTACT. For information about this Order, contact the CFO Office of Finance and
Accounting.
BY ORDER OF THE SECRETARY OF ENERGY:
DAVID M. TURK
Deputy Secretary
DOE O 522.1A Attachment 1
8-2-2018 Page 1
CONTRACTOR REQUIREMENTS DOCUMENT
DOE O 522.1X, PRICING OF DEPARTMENTAL MATERIALS AND SERVICES
1. General Requirements. The term “contract” or “contractor” as used in this document
includes site/facility management contracts or contractors, all Management and Operating
(M&O) contracts or contractors, and any other contracts or contractors that require the
establishment of prices for materials and services provided to non-DOE entities. The
contractor is responsible for complying with the requirements of this Contractor
Requirements Document (CRD) when establishing prices for materials and services
provided to non-DOE entities.
The contractor is responsible for flowing down the requirements of this CRD to
subcontractors at any tier to the extent necessary to ensure the contractor’s compliance
with the requirements and remains responsible for complying with the requirements of
this CRD. Contractors and subcontractors at all tiers shall provide timely pricing of
direct and indirect costs covered by this DOE Order.
2. Exemptions. The general pricing policy will not apply when prices or charges are
otherwise established or prohibited by statute or regulation. This exemption applies to the
specific pricing described below or any other situation governed by a separate statute or
regulation:
a. Charges or other compensation for source material, special nuclear material, and
byproduct material, which are determined in accordance with the Atomic Energy
Act of 1954, as amended, 42 U.S.C. Chapter 23. Such charges or compensation
are established by the cognizant DOE official serving in a position requiring
appointment by the President of the United States with the advice and consent of
the Senate;
Section 13
b. Prices for uranium inventory sales or transfers subject to the provisions of 42
U.S.C. § 2297h-10(d);
c. Prices for processing information requests submitted under the Freedom of
Information and Privacy Acts, which are established by 5 U.S.C. § 552(a)4(A)
and 10 Code of Federal Regulation (C.F.R.) § 1004.9;
d. Prices for crude oil and related materials and services from the Strategic
Petroleum Reserve, which are determined per the provisions of 42 U.S.C. § 6241.
e. Prices for the sale of excess personal property, under 41 C.F.R. § 102-36.35;
f. Fees and costs for the storage and disposal of radioactive waste, which are
determined in accordance with 42 U.S.C. § 10222;
g. Prices for the sale of isotopes and related products and services, which are
governed by 42 U.S.C. § 2061 Note, “Isotope Production and Distribution
Attachment 1 DOE O 522.1A
Page 2 8-2-2018
Program Fund.” The DOE Isotope Program separately sets the prices for isotopes
and related products and services;
h. Royalty rates established by DOE contractors when the contractors have title to
the intellectual property that is being licensed;
i. Transactions related to projects prosecuted in cooperation with other agencies,
Federal, State, private, or foreign under the authority of 42 U.S.C. § 7278.
j. Intergovernmental Personnel Act Assignments, which are governed by DOE M
321.1-1, Intergovernmental Personnel Act Assignments, dated 8-24-00. The
assignment of DOE site/facility management personnel to a non-federal entity is
not considered an Intergovernmental Personnel Act Assignment.
k. Work performed for the Department of the Navy as part of the joint Navy/DOE
Naval Nuclear Propulsion Program.
3. General Pricing Policy.
a. For research and other activities, including the provision of materials and other
services, provided to or performed for the benefit of non-DOE entities, the
site/facility management contractor (including management and operating
contracts), and any other contractors or contracts that require the establishment of
prices for materials and services provided to non-DOE entities, will charge full
cost as defined by statute 42 U.S.C. § 7259a. The statute sets out three required
elements of pricing:
(1) Direct cost incurred;
(2) Indirect costs, including general and administrative expenses and other
allocated overheads such as Lab-Directed Research and Development
incurred by a site/facility management contractor that performs work on
behalf of non-DOE entities; and
(3) A Federal Administrative Charge, which includes charges for Federal
administrative overhead, depreciation, and imputed interest, and is not to
exceed 3 percent of the direct and indirect costs. DOE has set the Federal
Administrative Charge at 1 percent of these costs, effective October 1,
2025, consistent with implementing CFO direction. The Federal
Administrative Charge applies to all work priced under the General
Pricing Policy unless an exception applies as described in section 4 of this
CRD. Legacy pricing exceptions to the Federal Administrative Charge
not consistent with sections 5.b and 5.d. of this order will no longer be
applied as of October 1, 2025.
b. In no case will separate depreciation or imputed interest charges be assessed on a
non-DOE entity for materials or services. The Federal Administrative Charge is
DOE O 522.1A Attachment 1
8-2-2018 Page 3
Section 14
intended to reimburse these costs, in addition to the cost of the Department’s
Federal administrative overhead, and the Department, via its site facility
management contractors, is statutorily prohibited from assessing separate charges
for depreciation and imputed interest.
c. Materials and services provided are those which the Department, via its site
facility management contractors, is authorized to provide by law.
d. The General Pricing Policy applies to work performed for all non-DOE entities,
including foreign governments, except as noted in the exclusions section of this
CRD (Section 2) and when a special pricing consideration applies as noted in
Section 7 of this CRD.
e. Application of the Federal Administrative Charge to work performed for foreign
governments satisfies the cost recovery requirements for federal administrative
overhead, depreciation, and imputed interest.
f. For materials delivered from stock, the full-cost recovery price shall be the cost of
replacing the materials, if the materials can be replaced, and the cost of
packaging, shipping, preparation, and other ancillary costs associated with
providing items or material from stock. If the items or material cannot be
replaced, additional pricing methods may include the market value of the asset,
market value of similar assets, or other appropriate valuation methods that
reimburse DOE for the fair value of the assets transferred/sold and provide
reasonable compensation to DOE.
g. Materials that are excess to DOE requirements may be provided to other Federal
agencies at no cost, but the receiving agencies shall pay the cost of transport or
other ancillary costs if those costs exceed the cost of disposing of the excess items
or materials. Contractors must obtain the approval of the contracting officer
before providing contractor-held items to other Federal agencies at no cost.
Disposition guidance for excess materials, personal property is provided in DOE
G 580.1-1A, Personal Property, dated 6-9-15.
4. Exceptions for Assessing the Federal Administrative Charge.
a. There are a limited number of exceptions to the requirement to assess the 1
percent Federal administrative charge for reimbursable work performed for a non-
DOE entity:
(1) Agreements with domestic entities as follows: small business concerns as
defined by the Small Business Administration; institutions of higher
education; nonprofit entities; and State, local, and tribal governments;
(2) Work performed for the Department of Homeland Security;
Attachment 1 DOE O 522.1A
Page 4 8-2-2018
(3) Work performed for the Department of the Navy as part of the joint
Navy/DOE Naval Nuclear Propulsion Program; and
(4) Work performed by the Federal Energy Management Program for services
rendered to other Federal agencies under the authority of 42 USC § 8287.
b. Pricing exceptions are based on who the primary customer is, regardless of the
source of funds. The primary customer is the entity that enters into a
reimbursable work agreement with the Department of Energy.
c. As needed, the Departmental Office of the CFO provides clarification regarding
reimbursable work agreements to which the Federal Administrative Charge does
not apply.
5. Other Pricing Exceptions. The Departmental Office of the CFO may approve other
pricing exceptions because of unique circumstances that are not anticipated by the
Department’s General Pricing Policy. Exceptions to application of the Federal
Administrative Charge must also be approved by the Secretary. Approved exceptions
will be provided to contractors by the contracting officer.
Section 15
6. Applicability of the Federal Administrative Charge to Cosponsored Work, Cooperative
Research and Development Agreements (CRADAs), Other Technology Transfer
Mechanisms, Agreements for Commercializing Technology (ACT), and Federally funded
ACT (FedACT). The Federal administrative charge will be assessed on costs reimbursed
by non-DOE entities, including foreign governments, regardless of the level of
Departmental participation in funding the work effort. In-kind contributions will not be
subject to the Federal administrative charge. The Federal Administrative Charge shall be
assessed on all costs reimbursed by non-DOE entities under ACT and FedACT.
7. Activities Requiring Special Pricing Consideration.
a. Information Dissemination Products. DOE must comply with Office of
Management and Budget (OMB) Circular A-130, Managing Federal Information
as a Strategic Resource. The site facility management contractor will assist DOE
in compliance with this Circular. Circular A-130 provides that the Department
shall not, unless specifically authorized by statute, establish fees that exceed the
cost of dissemination to the public. Should an exception to this policy be
warranted, DOE will provide additional guidance.
b. Foreign Research Reactor Spent Nuclear Fuel Program. Because this program
supports the DOE nonproliferation mission, pricing for less than full cost recovery
is approved as noted in the Federal Register (61 Fed. Reg. 26,507, May 28, 1996;
and 77 Fed. Reg. 4,807, Jan. 31, 2012). Under this program, the Department
charges a fee for accepting, managing, storing, and disposing of research reactor
spent nuclear fuel containing uranium that was enriched in the U.S. from high
income-economy countries as identified in the World Bank Development Report.
The fee for high-income-economy countries does not include the costs of
DOE O 522.1A Attachment 1
8-2-2018 Page 5
preparing the spent nuclear fuel for shipment to the U.S. (e.g., inspection,
documentation, and canning if necessary) or shipping the spent nuclear fuel to the
Department. Such costs are separately borne by high-income-economy countries.
DOE bears the full cost of shipping, receipt, and management of foreign research
reactor spent nuclear fuel received from other than high-income-economy
countries, including at-reactor preparation.
c. Support of Domestic Research Reactors under the Research Reactor Infrastructure
Program. The Research Reactor Infrastructure Program is authorized by section
31 of the Atomic Energy Act and supports the Department’s interest in research
and development of nuclear energy. Under this program, the Department is
permitted to provide, at no charge, support and other services to participating
domestic research reactors. These activities include, but are not limited to, the
supply of nuclear fuel and disposal of DOE owned spent nuclear fuel. When
reactor operations support both the DOE R&D mission and other commercial
applications, the reactor operators shall be charged a share of the full cost of DOE
support that is proportional to use of the reactor for commercial purposes.
d. Access Permits. An access permit is a permit issued by DOE authorizing access
by the named party to Restricted Data applicable to civil uses of atomic energy in
accordance with the terms and conditions stated on the permit. DOE rules for
granting access permits can be found under 10 C.F.R. § 725. Fees shall be
assessed in accordance with 10 C.F.R. § 725, which includes charges for services
DOE may furnish in connection with the access permit (e.g., granting of
personnel access authorizations, DOE consulting services, and publication and
reproduction of documents).
Section 16
e. Museums and Exhibits. Unless there is specific authority to collect admission
fees, visitors to DOE museums and exhibits will not be charged for admission.
f. Designated Departmental User Facilities.
(1) Pricing for Non-Proprietary Research. Access to user facilities will be
authorized at no charge for non-proprietary research that is approved by
laboratory management, usually with the advice of a technical advisory
committee. The facility manager will determine which requests meet
those criteria and report periodically to the cognizant DOE Program
Office.
Classified research that can be shared in classified journals or classified
publications is considered to be non-proprietary for the purposes of this
policy.
Non-proprietary users may be charged for incremental costs incurred over
and above normal use of the facility at the discretion of the facility
manager. Such costs may include operating a facility outside of the
Attachment 1 DOE O 522.1A
Page 6 8-2-2018
normal operating mode or schedule; unusual security, safety, or technical
arrangements; or consumables.
(2) Pricing for Proprietary Research. When a user facility is made available
for proprietary research, the user will be charged a fee that realizes full
cost recovery as defined by the DOE General Pricing Policy (section 3 of
this CRD) except as noted below.
During the build-out period (start-up) of a new user facility, proprietary
users may be charged a modified annual rate that is equivalent to the
estimated full-cost recovery rate for the year at the facility’s planned
practical capacity. Practical capacity is defined as the maximum units of
output that the available capacity can produce taking the normal stoppage
and interruptions into consideration. The modified rate shall be
recalculated annually to account for revised estimates of capacity,
operating costs, or other factors.
Proprietary users shall be charged for all incremental costs incurred over
and above normal use of the facility. Such costs may include operating a
facility outside of the normal operating mode or schedule, unusual
security, safety, or technical arrangements, and consumables.
Section 17
1. OBJECTIVE. To establish Department of Energy (DOE) requirements for prices and charges for materials and services that are sold or provided to non-DOE entities (e.g., other Federal agencies; the private sector; state, local, or foreign governments)...
2. CANCELLATION. DOE 522.1, Pricing of Departmental Materials and Services, dated November 3, 2004. Cancellation of an Order does not, by itself, modify or otherwise affect any contractual obligation to comply with the Order. Canceled Orders that are ...
3. APPLICABILITY.
4. EQUIVALENCIES AND EXEMPTIONS.
5. PRICING REQUIREMENTS.
6. ACTIVITIES REQUIRING SPECIAL PRICING CONSIDERATION.
7. BIENNIAL PRICING REVIEWS.
(1) Prices conform to the requirements of OMB Circular A-25, User Charges, Departmental pricing policy, and relevant regulations and statutes;
(2) Adequate documentation exists for prices established for materials and services; and
(3) Exceptions to the Department’s full cost recovery policy are limited only to those specified in this Order.
(1) Review Scope. The scope of the review shall include the following:
(2) Objectives and Methodology. A sample of reimbursable work performed and/or sales of materials to non-DOE entities shall be assessed during the biennial period. The review should be adequate to assess whether:
(3) Report to the Office of the CFO. Biennial reviews and the associated corrective action plans must be prepared and submitted to the CFO Office of Finance and Accounting no later than March 31, 2020, and each biennial period thereafter. The submis...
(1) Sale of Oil from Strategic Petroleum Reserves (SPR). The Annual Strategic Petroleum Reserve Report may be used by the Office of Fossil Energy to satisfy the biennial pricing review requirement. The authority for the SPR sales program is 42 U.S.C. ...
(2) Nuclear Waste Fund. 42 USC § 10222 provides specific provisions for establishing the fees that are assessed to civilian nuclear power plants. The fund is subject to an annual independent audit that satisfies the biennial review requirement.
(3) Uranium Enrichment Decontamination and Decommissioning (D&D) Fund, Stockpile Management Transactions. The Office of Environmental Management shall report biennially to the Departmental Office of the CFO that the audit of the uranium stockpile mana...
(4) Sale of Isotopes and Related Services. The annual cost review of the Isotope Program may be used by the Office of Science to satisfy the biennial pricing review requirement. In addition, the process of updating the Isotope Program's current price ...
(5) Power Marketing Administration (PMA) Revenue. The PMAs may use annual power repayment studies to satisfy the biennial pricing review requirement for work funded by ratepayers. The CFOs, or equivalents, of the power marketing administrations shall...
(6) Loan Program Fees. The Director of the Loan Program Office shall review program fees biennially and shall provide the Departmental Office of the CFO with an assurance that current fees have been reviewed and are consistent with 42 U.S.C. § 16512(...
Section 18
8. BILLING & FINANCING. Invoices for materials and services will be prepared and issued promptly in accordance with the terms of contracts or agreements. Billing procedures will follow the requirements in Chapter 8, “Receivables,” of the DOE Financial...
9. RESPONSIBILITIES.
(1) Develops and interprets DOE pricing policy.
(2) Approves requests to waive costs incurred on behalf of non-DOE entities in accordance with the provisions of section 5.d. of this policy. The Departmental Office of the CFO may refer a request to waive costs to the Secretary if the request does n...
(3) Oversees the biennial pricing review.
(1) Ensure prices for materials and services provided by organizations under their cognizance are set in accordance with requirements of this Order.
(2) Submit requests for waiver of costs incurred on behalf of non-DOE entities to the Departmental Office of the CFO for approval in accordance with the provisions of this Order.
(3) Consult with the Departmental Office of the CFO on matters relating to pricing and full cost recovery. When appropriate, submit proposals for legislative changes on pricing matters to the Departmental Office of the CFO for consideration in accord...
(4) Ensure biennial reviews of prices for materials and services under their cognizance are performed in accordance with the provisions of this Order.
(1) Ensure the policies, procedures, and reporting requirements contained in this Order are followed.
(2) Develop and approve prices for materials and/or services when the prices are based on full cost recovery.
(3) Disseminate new and revised prices and charges.
(1) Through the cognizant HCA, notify contracting officers when site/facility management contracts are affected by requirements of this Order.
(2) Conduct the biennial pricing review for all materials and services provided by facilities under their oversight responsibility in accordance with the provisions of this Order and coordinate with the contracting officer to ensure that the Departmen...
(3) Support the site/facility management contractors and DOE contracting officers on pricing matters.
(4) Reviews and concurs with exceptions to the general pricing policy prior to submitting them to the Departmental Office of the CFO for approval.
(1) After being notified that the requirements of this Order apply to site/facility management or other contracts under their cognizance, ensure that the Contractor Requirements Document (CRD) is incorporated into affected site/facility management con...
(2) Works with the cognizant DFO to ensure that site/facility management contractors price reimbursable work in accordance with Departmental policy, as specified by this Order.
(3) Works with the cognizant DFO to ensure that site/facility management contractors address any issues identified by the biennial pricing reviews.
(4) Consults with the cognizant DFO or equivalent on pricing matters.
Section 19
10. REFERENCES.
11. CONTACT. For information about this Order, contact the CFO Office of Finance and Accounting.
1. General Requirements. The term “contract” or “contractor” as used in this document includes site/facility management contracts or contractors, all Management and Operating (M&O) contracts or contractors, and any other contracts or contractors that...
2. Exemptions. The general pricing policy will not apply when prices or charges are otherwise established or prohibited by statute or regulation. This exemption applies to the specific pricing described below or any other situation governed by a separ...
3. General Pricing Policy.
(1) Direct cost incurred;
(2) Indirect costs, including general and administrative expenses and other allocated overheads such as Lab-Directed Research and Development incurred by a site/facility management contractor that performs work on behalf of non-DOE entities; and
(3) A Federal Administrative Charge, which includes charges for Federal administrative overhead, depreciation, and imputed interest, and is not to exceed 3 percent of the direct and indirect costs. DOE has set the Federal Administrative Charge at 1 p...
4. Exceptions for Assessing the Federal Administrative Charge.
(1) Agreements with domestic entities as follows: small business concerns as defined by the Small Business Administration; institutions of higher education; nonprofit entities; and State, local, and tribal governments;
(2) Work performed for the Department of Homeland Security;
(3) Work performed for the Department of the Navy as part of the joint Navy/DOE Naval Nuclear Propulsion Program; and
(4) Work performed by the Federal Energy Management Program for services rendered to other Federal agencies under the authority of 42 USC § 8287.
5. Other Pricing Exceptions. The Departmental Office of the CFO may approve other pricing exceptions because of unique circumstances that are not anticipated by the Department’s General Pricing Policy. Exceptions to application of the Federal Admini...
6. Applicability of the Federal Administrative Charge to Cosponsored Work, Cooperative Research and Development Agreements (CRADAs), Other Technology Transfer Mechanisms, Agreements for Commercializing Technology (ACT), and Federally funded ACT (FedAC...
7. Activities Requiring Special Pricing Consideration.
(1) Pricing for Non-Proprietary Research. Access to user facilities will be authorized at no charge for non-proprietary research that is approved by laboratory management, usually with the advice of a technical advisory committee. The facility manag...
(2) Pricing for Proprietary Research. When a user facility is made available for proprietary research, the user will be charged a fee that realizes full cost recovery as defined by the DOE General Pricing Policy (section 3 of this CRD) except as note...