[Federal Register Volume 59, Number 177 (Wednesday, September 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22740]


[[Page Unknown]]

[Federal Register: September 14, 1994]


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DEPARTMENT OF ENERGY
 

Deviations for the Small Business Technology Transfer (STTR) 
Program

AGENCY: Department of Energy.

ACTION: Class deviations.

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SUMMARY: The Department of Energy (DOE), pursuant to 10 CFR 600.4, 
hereby announces six deviations from its Financial Assistance Rules for 
the Small Business Technology Transfer (STTR) program. The approval of 
these deviations permits the application of the Special Provisions for 
the Small Business Innovation Research Grants contained in Section 
600.125 to the Small Business Technology Transfer Grants.
    The STTR is a three year pilot program created by the Small 
Business Research and Development Act of 1992 (Act). Its objective is 
to increase the commercialization of federally funded research and 
development by small innovative firms collaborating with non-profit 
research institutions. The program is conducted in two phases. Under 
Phase I grants, each firm will attempt to determine the feasibility of 
the innovative concept. During the second phase, selected concepts 
would be further developed.
    The six deviations have been approved because they are necessary to 
achieve STTR program objectives set forth in the Act and the STTR 
Policy Directive issued by the Small Business Administration. The first 
deviation will ease the record-keeping requirements for recipients; the 
second deviation will allow the DOE officials, in appropriate 
circumstances, to make lump-sum payments to Phase I recipients; the 
third deviation allows Phase II recipients to receive a single award of 
24 months; the fourth deviation requires Phase I and Phase II 
recipients to request DOE approval before no-cost extensions to grant 
project periods can be approved; the fifth deviation requires Phase I 
and Phase II recipients to receive prior approval from DOE before 
entering into any sole source or single-bid contracts in excess of 
$25,000; and the sixth deviation permits the payment of fees to STTR 
recipients.

EFFECTIVE DATE: October 14, 1994.

FOR FURTHER INFORMATION CONTACT: Cherlyn D. Seckinger, Business and 
Financial Policy Division, [HR-521], U.S. Department of Energy, 1000 
Independence Avenue, SW., Washington, DC 20585 (202) 586-8192.

SUPPLEMENTARY INFORMATION: In this notice, the DOE announces that, 
pursuant to 10 CFR Part 600, the Deputy Assistant Secretary for 
Procurement and Assistance Management has made a determination of the 
need for six deviations to the DOE Financial Assistance Rules. The 
determination document, dated September 8, 1994 provides for deviations 
for STTR recipients as explained below [i.e., a ``class deviation''].
    Deviation Number 1 waives the requirements of Sec. 600.109 
concerning compliance with Government record-keeping requirements. This 
deviation is necessary to allow the Phase I awards to be made on a 
``fixed obligation'' basis. Fixed obligation awards further the program 
objective [see Sec. 600.4(b)(1)] of reducing the administrative burden 
by reducing the amount of recordkeeping the recipient must perform. 
Phase I grants are limited to $100,000 in dollar amount and a duration 
of 9 months.
    Deviation Number 2 permits the cognizant program official and 
contracting officer to make one or more lump-sum payments in 
circumstances they deem appropriate. This deviation, from 
Sec. 600.112(c), which requires the timing of cash advances to be as 
close as feasible administratively to the disbursement of funds. This 
deviation is necessary to support award of Phase 1 grants on a fixed 
obligation basis and contributes to the program objective [see 
600.4(b)(1)] of reducing administrative burden by lessening the 
frequency that recipients must request payments. All awards will be 
conditioned where lump sum payments are made to require recipients to 
return to the DOE amounts in excess of $500 remaining unexpended at the 
end of the project.
    Deviation Number 3 permits Phase II STTR awards to be made as a 
single fixed budget period for each award of 24 months. This is a 
deviation from Sec. 600.31 and furthers the program objective [see 
Sec. 600.4(b)(1)] of reducing administrative burdens by reducing the 
frequency with which the recipient must submit applications for 
continued funding. It is appropriate because the Phase II period is 
considered to be a single, continuous activity under the STTR program 
legislation.
    Deviation Number 4 requires extensions of budget and project 
periods beyond end dates designated on the Notice of Financial 
Assistance Award to receive the approval of the DOE. This deviation to 
Sec. 600.31[d] removes the authority of the recipient to approve 
automatic no-cost extensions normally associated with simplified 
administration of research grants. This is necessary to achieve program 
objectives [see Sec. 600.4(b)(1)] by insuring consistency with the STTR 
Policy Directive which establishes periods of performance for Phases I 
and II.
    Deviation Number 5 requires a grantee to receive the prior approval 
of the Department and a subgrantee to receive the prior approval of the 
grantee before entering into a sole source contract, or a contract 
where only one bid or proposal is received when the contract is 
expected to exceed $25,000 in the aggregate. This deviation from 
Sec. 600.103 limits the authority of recipients to enter into sole 
source or single bid contracts on their own, and is believed to be 
necessary to achieve program objectives [see Sec. 600.4(b)(1)] by 
helping to prevent problems which can arise from those types of 
contracts and adversely impact project completion.
    Deviation Number 6 permits a fee or profit to be paid to STTR 
recipients. This deviation to Sec. 600.103[h] is necessary to achieve 
program objectives [see Sec. 600.4(b)(1) by insuring consistency with 
the STTR Policy Directive effective August 10, 1993.
Richard H. Hopf,
Deputy Assistant Secretary for Procurement and Assistance Management.
[FR Doc. 94-22740 Filed 9-13-94; 8:45 am]
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