[Federal Register Volume 59, Number 210 (Tuesday, November 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27054]


[[Page Unknown]]

[Federal Register: November 1, 1994]


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DEPARTMENT OF ENERGY

 

Deviation To Permit Use of Fixed Obligation Awards

AGENCY: Department of Energy.

ACTION: Notice of Class Deviation.

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SUMMARY: The Department of Energy (DOE), pursuant to 10 CFR 600.4, 
hereby announces a deviation from its Financial Assistance Rules to 
permit, for a two (2) year pilot period, the issuance of certain 
assistance awards on a ``fixed obligation'' basis. This deviation is 
considered to be necessary to conserve public funds, and essential to 
the public interest. The deviation will reduce administrative 
requirements involved in the management of grants and will streamline 
the award of financial assistance actions by the Department.

FOR FURTHER INFORMATION CONTACT: E. Stephen Logan, Office of Management 
Review and Analysis (HR-523), U.S. Department of Energy, 1000 
Independence Avenue. S.W., Washington, DC 20585, (202) 586-9048.

EFFECTIVE DATE: November 16, 1994.

SUPPLEMENTARY INFORMATION: In this notice, the Department of Energy 
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 a class deviation to the Department's 
Financial Assistance Rules. A deviation to 10 CFR 600.109 has been 
approved which provides that for certain assistance awards incurred 
costs will not be subject to regulation by the standards of cost 
allowability. This deviation is necessary to allow the award of certain 
assistance instruments on a ``fixed obligation'' basis. A fixed 
obligation award is one for which a fixed amount of funds are issued in 
support of a project without a requirement for Federal monitoring of 
actual costs subsequently incurred. It is intended for use in support 
of projects in which there is certainty about the cost, and in which 
the accomplishment of the purpose of the award is readily discernible 
such as conferences, workshops, equipment, travel, etc. It is noted 
that the Financial Assistance Rules permit use of fixed obligation 
awards under Phase I of the Small Business Innovative Research Program. 
This current deviation will expand the use of the fixed obligation 
award concept for a pilot period of two years. Programs which require 
mandatory cost sharing are not eligible for fixed obligation awards.
    The Contracting Officer must determine the appropriateness of 
issuance of a fixed obligation award. In making this determination, the 
following factors are considered: (1)(A) The certainty that the funds 
requested will be the actual cost of the effort so that funds will not 
be remaining upon completion of the project or (1)(B) if there cannot 
be certainty about the actual cost of the project, then the certainty 
that the award is definitely less than the total actual cost of the 
project; (2) the possibility of making the evaluation involved in (1) 
above, if there are likely to be changes in the project; and (3) the 
ability to easily identify accomplishments or results. The use of a 
fixed obligation award must also be consistent with programmatic 
requirements. Each fixed obligation award may not exceed $100,000 or 
exceed one year in length.
    The following administrative standards shall apply to all fixed 
obligation awards: (1) Proposed costs must be analyzed in detail to 
ensure consistency with applicable cost principles; (2) although 
budgets are submitted by a recipient and reviewed for purposes of 
establishing the amount to be awarded, budget categories are not 
stipulated in making an award; (3) prior approval for rebudgeting among 
categories by the recipient is not required; (4) payments will be made 
in the same manner as other financial assistance awards (see Section 
600.112), except that when determined appropriate by the cognizant 
program official and contracting officer a lump sum payment may be 
made; (5) recipients must certify in writing to the contracting officer 
at the end of the project that the activity was completed or the level 
of effort was expended, however, should the activity or effort not be 
carried out, the recipient would be expected to make appropriate 
reimbursements; (6) requirements for periodic reports may be 
established for each award so long as they are consistent with Section 
600.115; and (7) changes in principal investigator or project leader, 
scope of effort, or institution, require the prior approval of the 
Department.

    Issued in Washington, DC, September 27, 1994.
Richard H. Hopf,
Deputy Assistant Secretary for Procurement and Assistance Management.
[FR Doc. 94-27054 Filed 10-31-94; 8:45 am]
BILLING CODE 6450-01-P