[Federal Register Volume 79, Number 249 (Tuesday, December 30, 2014)]
[Notices]
[Pages 78497-78498]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30244]


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NATIONAL SCIENCE FOUNDATION


Notice and Request for Comments on the National Science 
Foundation (NSF) Implementation of Proposed NSF Management Fee Policy

AGENCY: National Science Foundation.

ACTION: Notice and Request for Comments on the National Science 
Foundation (NSF) Implementation of Proposed NSF Management Fee Policy.

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SUMMARY: The payment of a small but appropriate management fee has been 
a long standing practice at the National Science Foundation (NSF) in 
limited circumstances related to the construction and operation of 
major facility projects. NSF is strengthening both the criteria used to 
establish such management fees and the controls that may be necessary 
to ensure that uses of fees are consistent with those established 
criteria. These efforts have resulted in a revised policy that we are 
providing here for public comment.

DATES: Comments on the proposed NSF Management Fee are welcome before 
February 13, 2015. Comments will be useful in shaping the agency's 
implementation. All comments received before the close of the comment 
period will be available for public inspection, including any 
personally identifiable or confidential business information that is 
included. Because they will be made public, comments should not include 
any sensitive information. Please send written comments regarding the 
management fee policy to Suzanne Plimpton, Reports Clearance Officer, 
National Science Foundation, 4201 Wilson Blvd., Rm. 1265, Arlington, VA 
22230, or by email to [email protected].

FOR FURTHER INFORMATION CONTACT: Suzanne Plimpton on (703) 292-7556 or 
send email to [email protected]. Individuals who use a 
telecommunications device for the deaf (TDD) may call the Federal 
Information Relay Service (FIRS) at 1-800-877-8339, which is accessible 
24 hours a day, 7 days a week, 365 days a year (including federal 
holidays).

SUPPLEMENTARY INFORMATION: The following proposed NSF Management Fee 
Policy can be found in the NSF Large Facilities Manual:
    Section 4.2.2.2 Management Fee
    Management fee is an amount of money paid to a recipient in excess 
of a cooperative agreement's or cooperative support agreement's 
allowable costs. Generally, NSF does not pay profit or fee to 
organizations under financial assistance, except for the specific 
exception of profits to commercial organizations performing Small 
Business Innovation Research (SBIR) or Small Business Technology 
Transfer (SBTR) work. However, a management fee may be authorized for 
awards to non-profit organizations in the limited circumstance of 
construction or operation of a large facility under an NSF assistance 
award when the organization has limited or no other financial resources 
to cover certain ordinary and necessary business expenses that may not 
be reimbursable under the governing cost principles. When requested and 
justified by an awardee and subsequently authorized by NSF, management 
fee will be paid once negotiated by the NSF Grants and Agreements 
Officer. Any amount negotiated shall be expressly set forth in the 
terms and conditions of the award.
    NSF recognizes the following criteria for the negotiation and award 
of management fee:
     Working capital necessary to fund operations under an 
award
     Facilities capital necessary to acquire assets for 
performance
     Amounts for other expenses that are ordinary and necessary 
for business operations but that are not otherwise reimbursable under 
the governing cost principles
    Amounts for working capital may be necessary to ensure a level of 
retained earnings available to the organization in order to secure 
credit and borrowing to assure the financial health of the 
organization. An amount for facilities capital may be necessary to 
allow the organization to acquire major assets and to address expenses 
that require immediate substantive financial outlays but that are only 
reimbursed through depreciation or amortization over a period of years. 
Amounts for other expenses that are ordinary and necessary but not 
otherwise reimbursable can provide a reasonable allowance for 
management initiative and investments that will directly or indirectly 
benefit NSF. Examples of potential appropriate needs include contract 
terminations and losses, certain appropriate educational and public 
outreach activities, and providing financial incentives to obtain and 
retain high caliber staff. Amounts for this

[[Page 78498]]

criterion warrant careful consideration of the benefits that may be 
obtained by NSF when providing management fee. Although not an 
exhaustive list, the following are examples of expenses that do not 
benefit NSF:
     Alcoholic beverages
     Tickets to concerts, sporting and other events
     Vacation or other travel for non-business purposes
     Charitable contributions
     Social or sporting club memberships
     Meals for non-business purposes or so extravagant as to 
constitute entertainment
     Luxury or personal items
     Lobbying as set forth in the Uniform Guidance at 2 CFR 
200.450
    Costs that are otherwise reimbursable as described in the Uniform 
Guidance at Subpart E should not be included as part of the management 
fee negotiation.
    The fee proposal must provide sufficient visibility into each 
criterion to identify its intended purpose. The proposal must also 
include a schedule of all federal, non-federal, and other sources of 
income to justify that alternate sources of income are not available to 
address potential needs covered in the proposal. Agreement on 
management fee amounts shall be completed and a sum certain established 
prior to the initiation of work under an award or any subsequent period 
not authorized as part of the initial award. Recipients may draw down 
management fee in proportion to costs incurred during the performance 
period. Fee established for a period longer than one year shall be 
subject to adjustment in the event of a significant change to the 
budget or work scope.
    Even though management fee represents an amount in excess of cost 
and therefore not subject to application of the cost principles set 
forth at 2 CFR part 200, subpart E, NSF maintains a strong interest in 
how those monies are used. Information on actual uses of management fee 
previously awarded by NSF in the preceding five-year period under any 
award shall be included in the proposing organization's fee proposal. 
For incumbent awardees, fee proposals submitted in response to a NSF 
program solicitation shall include information regarding their 
management fee usage under the preceding award(s). NSF will examine the 
extent to which awardee fee proposals have proven reliable when 
compared with actual uses of management fee. NSF will also perform 
periodic reviews of management fee usage under an award. Repeated, 
unexplained failure to reasonably adhere to planned uses of fee will 
result in reduction of future management fee amounts under the award.

    Dated: December 19, 2014.
Suzanne H. Plimpton,
Reports Clearance Officer, National Science Foundation.
[FR Doc. 2014-30244 Filed 12-29-14; 8:45 am]
BILLING CODE 7555-01-P