ML20196B985

Request for OMB Review & Supporting Statement Re Contract Clauses.Estimated Respondent Burden Is 9,100 H

ML20196B985
Person / Time
Issue date:	02/05/1988
From:	Mcdonald W NRC OFFICE OF ADMINISTRATION (ADM)
To:
References
OMB-3150-0112, OMB-3150-112, NUDOCS 8802120213
Download: ML20196B985 (29)

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Request for OMB Review "7 "

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Read instn.ctrons before complet,rg form. Do not use the same SF 83 Send three Copies of this form, the material to be reviewed. and for to rec est both an Executrve Orcer 12291 review and approvat uncer paperwork--three copies of the supporting statement. to.

the Pape work Reduction Act Ars Ae a!! Quest ens m Part f. If th:s request is for review under E.O. Office of Information and Regulatary Af fairs 1229' como'ete Part il and s'gn the regulatory certification, if this Ofhee of Management ai d Budget request is fo* apo' ova! under the Paperwork Reduction Act and 5 CFR Attention: Docket Ubrary. Room 3201 1320. skip Pa t H. co nplete Part til and s<gn the paperwork certification. Washington. DC 20503 PART l.-Complete This Part for All Requests.

1. Departmert/agercy and 8sreaw of fice or g.natirg request 2. Agency coce U. S. Nuclear Regulatory Commission

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3. Name of penon wno can ces anse.er duest ons regarcirg tn:s reauest Telephore nurnber Ka_thryn_A._ Day.is ( v)1 ) do? 4280

4. Titt et i-'or~at or colection er re e amirg Contract Clauses

$. Legal autbonts fcr srformation conection or rde (cite Undec States Coce. Pate.c Lan. or E>ecutive O'cer) us+,

Atomic Energy Act of 1954,- As Amended or

6. A"etted .boc (etecu a'!!-M a:W $ [ ree, a' agencies or e $oyees 1 C Ir.c we, a s ce reuseret:s 3 C Fa ms 6 C tJon-prof t i'st.tutions t

2 C State er :cca to.e<-~e is 4 C Scs resses o'etae'fr< crof t 7 C Sr-an bus'resses or o<gantat ons PART ll.-Complete This Part Only if the Requestis for OMB Review Under Executive Order 12291

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1 6%:e o* s V ss e c ecn one n eac~ can:'n Type of reura requested C!assification Stagt of des e coment r

D Sta ca.:

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PART lil.-C;mpl:te This Part Only if th2 Riquest is f:r Apprcvalcf a C llectirn cf Inf:rmati:n Und;r th) Papirwork Raductisn Act and 5 CFR 1320.

13. Abstract-Dexe te reeds. usas and affected rubbe ir 50 wo'ds or !ess "ContY3Ct, adMfiT3tr8tMn" The Division of Contracts uses clauses other than those in the FAR to ensure that rights of the Agency are protected and that Agency policies, pr.ocedures and rules directed by the Atomic Energy Act with regard to Contractor Organizational Conflict of Interest and Security are adhered to.

14. Type o'intermat en conection (cW only one)

Infprmation collections not contained in rules 13 RegWa'sub'n ssion 2 C Emergency submiss.on(cert >ficatio't a!tached)

Information collections containedin rules 3 C b.stieg regulate (no change proposed) 6 Firal or intenm final a.tr out p*,or NPRM 7. Enter date of expected or actual Federal 4 C N:tice of preocsed rWemaiurg(NPRM) A C pegutar subm ssior Reg. ster pudncate, at tnis stase of ruiemaiung 5 C rinai. NpRu .a. cretousi, pubnsned a terergency sub. mss.e, ccert;t, car m ,ttacned) (mer tn. dar. rear >.

15. Type of rev ew re;uested (check only one) 1 C Nea co9ection 4 C Peinstatement cf a preuously approved colection for which approval has espired 2d Rev.sion of a current'y approved colect.cn 3 O Entersion o' the esp 4adon date of a currect:y approved conect.cn 5 C Eosterg cct'ecte it' use a thout an OYB controi number w,tnout ary cea ge in tre substance or in the method of cotecten

16. Agency re:Pt 'e m ner ter(s) Mctude stava a/c;t onal form cu'rcer(s)) I 22. Pepese of iniorrrat.on conecton (cre:A as era ay as apply)

None ' 150 4pucaten for bere'.t>

2 C Pregram evaluation

17. An9uaf reporting or d sc'esure burden

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2 Numt,er :f resacases per resporcent u 4.235 : 5 g p. ,,,,n op s. g. y,,,,,.,.,,

3 ictal a-ruat ressorses (we 1 terres bee r) . 2,520 3 g p 3,,.cn 4 sours ce resc: se i 3.611 '

7- et 5 Tew:.fs ee s merne.n  ! 9,100 t la. 409Va' rec CrO teD#$ & #0en i 23. f ret,ency o' re:ord6eep.rg or re:.ortirg ter.eca av thatappy) f I Nune ot ewd.ee:es N/A i g p.co. ,,,p ,g 2 Am ual w*s cv re: +eepet neporting 3 Tetait e:orseeo *g ":.rs (ve 1 t'r es Iae 2) i 2 O Cnoe:ason 4 Pe;e c.*et g 'etect ca :e c: _ ,_ _e a s, 3 ] we,q

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26. Oces t'e 4e :y use sa r+ g te se ect res cr certs or d:es tre ages, ecc' e ; nuo te t*e se cf sa : g : s'at sSca! ara a s c, ren:wts' . C Yes @ No

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OMB SUPPORTING STATEMENT FOR NRC CONTRACT CLAUSES Description of the Information Collection The Nuclear Regulatory Commission (NRC) in performing its mission of protecting the health and safety of the public acquires confirmatory research, technical assistance and administrative services under contract. The NRC Division of Contracts uses clauses other than those in the Federal Acquisition Regulation (FAR) to ensure that agency policies, procedures and rules directed by the Atomic Energy Act with regard to Contractor Organizational Conflicts of Interest and Security are adhered to. Pre- and post-award disclosure of information with respect to relationships, situations and interests which may give rise to Contractor Organizational Conflicts of Interest and submission of information in response to the Security / Classification Requirements of the specific contractual action is required. Additionally, clauses are used in certain NRC cost reimbursement contracts which require submission of periodic reports of technical progress and financiai status of the contracted effort.

A. JUSTIFICATION

1. Need for the Collection of Information

a. Contractor Oraanizational Conflict of Interest Although the basic principles underlying FAR Subpart 9.5, Organizational Conflicts of Interest, are identical to the NRC rule, the procedures to implement that policy are substantially different. NRC's procedures are dictated in large part by Section 170A of the Atomic Energy Act, (Section 8 of Public Law 95-601, Section 170A to Public Law 83-703, 68 Stat. 919, as amended (42 U.S.C. Ch. 14). This section of the Act requires the NRC to request information from prospective contractors regarding conflict of interest and evaluate the information prior to contract award. It is this active role of requesting and evaluating information concerning conflict of interest situations that makes agency procedures different from those intended by the FAR. This clause puts into effect agency policy of avoiding, eliminating or neutralizing contractor organizational conflicts of interest. This objective is achieved by requiring prospective contractors to submit information describing relationships, if any, which may give rise to actual or potential conflicts of interest if awarded the contract. Since determinations regarding contractor conflicts of interest cannot be made routinely, such contractor supplied information is essential. Prospective contractors must certify as to whether the contract award would or would not involve a conflict of interest situation.

b. Security The agency is not covered by the Defense Iadustrial Security Program (DISP). In addition to Executive Orders, Statutes and other directives which apply to the security systems of all Federal agencies (includina the Department of Defense), NRC's security system is also based on the Atomic Energy Act (AEA) of 1954, as amended. Specifically Chapter 12, Section 145 of the

w AEA places certain restrictions on the control of NRC information as it relates to contracts. These restrictions /

requirements have been incorporated into NRC's security system and must be adhered to by contractors requiring access to classified information. This clause is necessary to ensure that any restricted data and classified information in a contractor's possession during contract performance is protected against sabotage, espionage, loss or theft. The clause requires the contractor to follow the Commission's security regulations and requirements for such data and information to include proper classification and transmission of classified matter to NRC upon contract completion or tennination. Approval of the Contracting Officer must be obtained if retention of classified material is requirec after completion or termination of the contract. The contractor must complete and submit a Certificate of Possession specifying the classified material to be retained,

c. Technical Progress and Financial Status Recorts Requirements for technical progress and/or financial status reports are selectively included in cost reimbursement contracts when detailed assessment of monthly progress and/or costs is warranted. The information required by the Technical Progress Report is straightforward, i.e., a summary of technical progress during the reporting period, delays or problems encountered or anticipated with recommendations for resolution, contract progress to date and plans for the next reporting period. The requirements of the financial status report too are straightforward, i.e., an overall sumary of financial status of the contract and details of all direct and indirect costs incurred during the reporting period for each discrete task. Separately or together, the reports provide information essential for maintenance of an aggressive cot. tract administration program to protect the rights and interests of the Government.

The Security and Organizational Conflict of Interest clauses were to be included in the NRC FAR Supplement (48 CFR 20) by FYE 1985. The proposed rule making was terminated however in June 1986 pending completion of an on-going study by senior management of the agency process for the acquisition of goods and services. The proposed rule had been drafted and internal NRC comments received at the timt of termination. The draft rule must now be modified to incorporate changes resulting from the procurement study and updated to reflect amendments to the FAR. The taroet date for completion of the draft rule is 30 September 1988.

Agency Use of Information.

2. The contractor is required to submit security related information in one copy to the Contracting Officer.

The Contracting Officer then coordinates review of the information with the Division of Security, takes action as appropriate, and responds on a case-by-case basis. Contractor Organizational Conflict of Interest information submitted under the representation procedure (41 CFR 20-1, 5405) is reviewed by the Contracting Officer to determine whether situations or relationships exist which

may constitute organizational conflicts. of interest with respect to a particular offeror or contractor. On a case-by-case basis, the Contracting Officer after consultation with the program office and office of General Counsel makes determinations as to existence of actual or potential conflicts of interest and takes appropriate action to avoid, eliminate or neutralize contractor organizational conflicts of interert. Post award submissions are reviewed by the Contracting Officer, the program office, office of General Counsel and possibly the Executive Director for Operations. Appropriate action is taken on a case-by-case basis. The Representation (included ir,Section X of the solicitation) is submitted in an original and one copy. Post award copy submissions are not specified. The original of the Technical Progress and Financial Status Reports are submitted directly to the Project Officer with a copy to the Contracting Officer. The Project Officer and the Contract Administrator work as a team fnr effective and efficient administration of the contract to assure successful accomplishment of the contract objective of the qualitv and within the cost and delivery constraints of the contract. The Project Officer uses the report to evaluate technical progress, monitor general direction of the work and assignment of personnel, and assists the contract administrator in assessment of incurred costs as they relate to progress of the work. The information is used to identify the need for technical direction, cost control and the timely initiation of remedial action required in the administration process.

3. Reduction of Burden Through Information Technology. The limited extent of information collection associated with the Contractor Organizational Conflict of Interest and Security clauses, the infrequency of submission and diversity of restonoents, does not lend itself to reduction of burden through use of improved information technolooy. It is assmed that improved information technologf would be used in tne pteriodic up-doting of Technical Progress and Financial Status Reports. There are no legal obstacles tn reducing the l'urden through use of improved information technology assuming sensitive business information can be protected from improper disclosure. NRC encourages reduction of burden through use of information technology.

4 Effort to Identifv Duplication. The Federal Information Lccator l System wu searched and no duplication was found.

5. Effort to Use Similar Information. The information is submitted in response to specific solicitation or contract requirements. Similar  :

information is not already available except for the Financial Status l Report. The requirement for Financial Status Reports is for .

inclusion only in selected contracts where detailing of costs by I discrete task is required. This level of detail is required to compare costs incurred with estimates for discrete tasks to assess work progress in relation to costs incurred. Similar information is submitted monthly in support of contractor's requests for payment under cost reimbursement contracts (NRC Form 418 and 418A - OM8 Clearance No. 3150-0109) but the information is not in the level of 3

detail by discrete task and cannot be modified by NRC to serve the need. Modification of the billing requirement to meet this need would represent an unnecessary burden to the-remaining universe of NRC's cost reimbursement contractors.

6. Effort to Reduce Small Business Burden. The burden applied to small business is the minimum consistent with applicable regulations and prudent business practices.

7. Consequences of less Frequent Collection. The collections under the Security and Conflict of Interest clauses are basically one-time collections based on the occurrence of specific contract /

solicitation situations or requirements. Less frequent reporting of technical progress and financial status removes an effective mechanism required for maintenance of an aggressive contract administration posture and may result in untimely initiation of remedial action to protect the interests of the Government. Monthly submission of reports coincides with submission of requests by the contractor for reimbursement of costs.

8. Circumstances Which Justify Variation from OMB Guidelines. The requirement for monthly submission of technical progress and financial 3tatus reports is not consistent with 5 CFR 1320.6(a).

The circumstances which justify more frequent submission are set forth in 7 above.

9. Consul ,, ens Outside NRC. The contract clause entitled "Cortractor Organizational Conflicts of Interest-General Contract Clause" was published in the Federal Register as part of Title 41, Subpart 20-1.54, and subject to public comment.

10. Confidentialicy of Information. To the extent information is proprietary or business cont?dential, procedures are in place to protect the infonnation from improper disclosure.

11. Justification for Sensitive Ouestions. No sensitive infarmation noimally considered privcte or personal is reouired or requested.

12. Estimated Annualized Cost to the Federal Government.

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The cost to the Agency attributable to the clauses herein is set forth in Table 1 which presents such costs by clause. The cost to the Government for each clause was derived from experience as to the approximate number of hours contract specialists expend in ensuring that contractors comply with a particular clause and includes review by other agency staff.

l 13. Estimate of Burden. Table 2 presents burden estimates for each l clause. Such burden estimates were derived from experience as to the approximate number of contractors affected by each particular clause and the approximate number of hours each contractor would have to expend to comply with the requirements of the clause.

14 Reason for Chanae in Burden. The burden estimated herein represents an overall decrease of 12,420 hours0.00486 days <br />0.117 hours <br />6.944444e-4 weeks <br />1.5981e-4 months <br /> in the annual contractor / offeror l

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burden estimated under the current clearance. Four of the clauses previously cleared were for information collections used in Agency Special Research Support Agreements entered into prior to April 1, 1984. All of these Agreements have now been administratively closed thus ending the need for the information collection associated with the following clauses:

Reports and Renewal Proposals (-5,000 hours0 days <br />0 hours <br />0 weeks <br />0 months <br />)

Determination of Support Costs (-2,500 hours0.00579 days <br />0.139 hours <br />8.267196e-4 weeks <br />1.9025e-4 months <br />)

Additional Approvals (-3,750 hours0.00868 days <br />0.208 hours <br />0.00124 weeks <br />2.85375e-4 months <br />)

Assignment: Subcontracting (-20 hours)

Use of the clause "Consultant or Other Comparable Employment Services of Contractor Employees" has been discontinued (-5,000 hours0 days <br />0 hours <br />0 weeks <br />0 months <br />). The clause "Dissemination of Contract Information" was substantially revised to delete the requirement for submission to the Contracting Officer of material proposed to be published or distributed and to provide NRC Manual Chapters as guidance for publication or dissemination of contract information. Specific submission requirements for NRC approval are considered an extension of contract specifications and are included on a case-by-case basis in the contract statement of work (-2,000 hours0 days <br />0 hours <br />0 weeks <br />0 months <br />). The burden associated with the "Security" contract clause has been reduced (from 1,250 to 500 hours0.00579 days <br />0.139 hours <br />8.267196e-4 weeks <br />1.9025e-4 months <br /> reflecting a reduction in the estimated number of contracts containing Security / Classification Requirements. Inclusion of the information collections "Technical Progress and Financial Status Reports" offsets the foregoing reductions resulting in the net overall decraase shown above, j

15. Publication for Statistical Use. The results will not be published or taoulated.

B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS This collection of information does not employ statistical methods. ,

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TABLE 1 ,

CONTRACT CLAUSES - COST TO NRC*

GOVERNMENT STAFF CLAUSE RESPONSES H0!!RS/ RESPONSE HOURS - ANNUAL GOVT COST Contractor Organizational 400 .5 200 $12,000 Conflicts of Interest Security 20 6 120 7,200 Technical Progress Reports 1,200 .5 600 36,000 Financial Status Reports 900 .5 450 27,000 2,520 TOTAL 1,370 Hours $82,200 1,370 hours0.00428 days <br />0.103 hours <br />6.117725e-4 weeks <br />1.40785e-4 months <br /> 0 $60/ hour = $82,200 - NRC Cost

• All figures herein are NRC estimates developed by the Division of Contracts and are based on daily experience in procurement activity.

.. i TABLE 2 CONTRACT CLAUSES - CONTRACTOR /0FFEROR BURDEN * .

NO. RESPONSES NO. OF CONTRACTORS / PER RESPONDENT TOTAL CONTRACTOR **

CLAUSE OFFER 0RS ANMIAL ANNUAL HOURS / RESPONSE BURDEN / ANNUAL Contractor Organiza- 400 1 5 .2,000 tional Conflicts of Interest Security 20 1 25 500 Technical Progress 100 12 4 4,800 Report Financial Status 75 12 2 1,800 Report TOTAL 595 9,100 Hours

• All figures herein are NRC estinates by the Division of Contracts and are based on daily experience in procurement activity.

• • The term contractor represents the various kinds of organizations that the NRC has entered into contracts with. They include profit making organizations not-for-profit organizations, non-profit prganizations, individuals, universities and other institutions of higher education.

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CONTRACT CLAUSES Contractor Organizational Conflicts of Interest Security Technical Progress Report Financial Status Report 6

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H.7 Contractor Organizational Conflicts of Interest (OMB Clearance Number 3150-0112)

a. Purpose. The primary purpcse of this clause is to aid in ensuring that the Contractor:

'1). Is not placea oa a conflicting role because of current or plannedinterest(financial, contractual, organizational,or otherwise) which relate to the work under this contract, and 2). Does not cbtain an unfair competitive aavantage over other parties by virtue of its performance of this contract.

b. Scope. The restrictions described herein shall apply to performance or participation by the Contractor as defined in 41 CFR {20-1.54C2(f) in the activities covereo by this clause.

c. Work for Others. Notwithstanding any other provision of this contract, curing the term of this centract, the Centractor agrees to forgo entering into consulting cr other contractual arrangements with any firm or organization, the result of which may give rise to a conflict of interest with respect to the work being performed under this contract. The Contractor shall ensure that all employees who are employed full time under this contract and employees designated as key personnel, if any, under this contract abide by the provision of this clause. If the Contractor believes with respect to itself or any such employee that any proposed consultant or other contractual arrangenent with any firm or organization may involve a potential conflict of interest, the Contractor shall obtain the written approval of the Contr6cting Officer prior te execution of such contractual arrangement.

d. Discicsure after award.

1). The Contractor warrants that to the best of its lnewledge ar.d t;elief and except as otherwise set forth in inis contract, it coes not have any crganizational conflicts of interest, as defined in 41 CFR 20-1.M02(a).

2). The Cor. tractor agrees that if after award it discovers organizational conflicts of interest with respect to this contruct, it shall make an immeoiate and full disclosure in writing to the Contracting Officer. This statement shall incluce a description of the action which the Contractor has taken or preposes to take to avoid er mitigate such cenflicts. The hRC may, however, terminate the contract for convenier.ce if it deems such termiration to be in the best interests of the Government.

e. Access to and use of information.

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'1). If the Contractor in the performance of this contract; obtains access to information, such as NRC plans, policies, reports, studies, financial plans, internal data protected by the Privacy Act of 1974 (Pub. L.93-579), or .

data which has not.been releasso to the public, the Contractor agrees not to:

(1) Use such infomation for.any private purpose'until the information has been released to the public; (ii) Compete for work for the Comission based on such information for a period of six (6) months after either the. completion of this contract or the release of such information to the public, whichever is first;-

(iii) Submit an unsolicited proposal to the Gcvernment based en such information until one year after the release of such information to the public, or (iv) Release the-information without prior written approval by the Contracting Officer unless such information has previously been released to the public by the NRC.

2). In addition, the Contractor agrees that to the extent it receives or is given access to proprietary data,' data protected by the. Privacy Act of 1974 (Pub. L.93-579), or other confidential or privileged technical, business, or financial infomation under this contract, the Contractor shall treat such infor' cation in accordance with restrictions placed on use of the infomation.

3. The Centractor shall have, subject to patent ano security provisions of this contract, the right to use technical data it produces under this centract fcr private purposes provided {

that all requirements of this contract have been met.

f. Subcontracts. Except as proviced in 41 CFR 20-1.5402(h), the Contractor shall include this clause, including this paragraph, in subcontracts of any tier. The terms "contract," "Contractor," and "Contracting Officer." shall be appropriately modified to preserve.  ;

the Government's rights. '

g. Remedies. For breach of any of the above prescriptions or for intentional nondisclosure or misrepresentation of any relevant interest required to be disclosed concerning this contract or for such errcneous representations as necessarily imply bad faith, the Government may terminate the contract for default, disqualify the Contractor from subsequent contractual efforts, and pursue other remedies as may be pemitten by law or this contract,

h. Waiver. A request for waiver under this clause shall be directed in writing through the Contracting Officer to the Executive

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Director for Operations (EDO) in accordance with the procedures outlined in $20-1.5411.

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K.1 Organizational Conflicts of Interest I represent to the best'of my knowledge and belief that:

The award to of a contract or the modifii:ation of an existing contract oces / / or does not / /

involve situations or relationships of the type set forth in 41 CFR 5 20-1.5403(b)(1).

Instructions to offerors. The following shall be included in all NRC solicitatior.s: (1) If the representation as completed indicates that situations or relationships of the type set forth in 41 CFR 5 20-1.5403(b)(1) are involved or the Centractir.g Officer otherwise determines that potential organizational conflicts exist, the offeror shall provide a statement in writing which describes in a concise manner all relevant factors bearing on his representation to the contracting officer. If the contracting officer determines that organizational conflicts exist, the following actions may be taken:

(i) . Impose appropriate ccnditions which avoid such conflicts, (ii) Disqualify the offeror, or (iii) Determine that it is otherwise in the best interest of the United States to seek award of the contract under the wniver provisions of 6 20-1.5411.

i (2) The refusal to provide the representation required by Q20-1.5404(b) l or upon regt.est of the contracting officer the facts required by i 120-1.5404(c), shall result in disqualification of the offeror for

award. The ocndisclosure or misrepresentation of any relevant interest may also result in the disqualification of the offeror for award; or if i such nondisclosure or misrepresentation is discovered after award, the l resulting contract may be terminated. The offeror may also be i disqualified from subsequent related NRC contracts and be subject to such other remedial actions provided by law or the resulting contract.

The offeror may, because of actual or potential organizational 7

conflicts of interest, propose to exclude specific kinos of work from l the statements of work contained in a RFP unless the RFP specifically prohibits such exclusion. Any such proposed exclusion by an offeror will be ccnsidered by the hRC in the evaluation of proposals. If the NRC considers the proposed excluded wcrk to be an essential or integral part of the required work and its exclusion would work to the detriment of the competitive posture of the other offerors, the proposal must be rejected as unacceptable.

The offeror's failure to execute the representation required by subsection (b) above with respect to invitation for bids will be considereo to be a minor informality, and the offeror will be permitted to correct the omissicn.

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. PART 20-1 -- GENERAL Subpart 20-1.'4--Contractor' 5 Organizational Conflicts of Interest Sec. '

l' 20-1.5401 Scope and policy.

20-1.5402 De.finitions. .

20-1.5403 Criteria for recognizing contractor organizational  ;

sonflicts of interest. .

l

20-1.5404 Representation. .

20-1.5405 Contract clauses.

20-1.5405-1 '

General contract clause.

20-1.5405-2 Special contract provisions. l 20-1.5406 Evaluation, findings, and contract award.. l l . 20-1.5407 Conflicts identified after award. 1 20-1.5408 (Reserved) 20-1.5409 (Reserved) 1

, - 20-l'.5410 Subcontractors. -

I 20-1.5411 Waiver. -

20-1.5412 Remedies.

l l ' AUTHORITY: Sec. 8, Pub. L.95-601, adding Sec.170A to Pub. L.

l ,83-703, 68 Stat. 919, as amended (42 U.S.C. ch.14) l l 120-1.5401 Scope and Policy (a) It is the policy of the U.S. Nuclear Regulatory Conrnission (NRC) to avoid, eliminate or neutralize contractor organizational conflicts of interest. The NRC achieves this objective by requiring all prospective contractors to subnit information describing relationships, if any, with organizations or persons (including those regulated by NRC) which may give rise to actual or potential c.onflicts of inter est in the event of contract award.

(b) Contractor conflict of interest determinations cannot be made automatically or routinely; the application of sound judgment on virtually a case-by-case basis is necessary if the policy is to be applied so as to satisfy the overall public interest. It is not possible to prescribe in advance a specific method or set of criteria which would serve to identify and resolve all of the contractor conflict of interest situations which might arise; however, examples are provided in these regulations to guide application of the policy. NRC contracting and program officials must be alert to other situations whien my warrant application of this policy guidance. The ultimate test 1.:: Might the contractor, if awarded the contract, be placed in a position where its judgment may be biased.

• l or where it may have an Jnfalf Competitive advantage?

(c) The conflict of interest rule contained in this subpart applies to contractors and offerors only. Individuals or firms who have other i relationships with NRC (e.g., parties to a licensing proceeding) are not covered by this regulation. This rule does not apply to the acquisition of consulting services through the personnel appointment. Drocess, NRC 1

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.- 7590-01 agreements with other government agencies, international organizations, or state, loca*, or foreign governments; separate procedures for avoiding conflicts of ',nterest will be employed in such ~ agreements, as appropriate.

120-1.5402 Definitions

-(a) "Organizational conflicts of interest" means that a relationship exists whereby a contractor or prospective contractor has present or -

planned interests related to the work to be perfonned under an NRC

-contract which: (1)Maydiminishitscapacitytogiveimpartial, technically sound, objective assist'ence and advice or may otherwise result in a

• biased work product, or (2) may result in its being given an unfair -

competitive advantage.

(b) "Research" means any scientific or technical work involving theoretical analysis, exploration, or experimentation.

(c)

• Evaluation activities" means any effort involving the appraisal of a technology, process, product, or policy.

(d) "Technical consulting and management support services" means internal assistance to a component of the NRC in the formulation or administration of its programs, projects, or policies which normally require the contractor to be given access to information which has not been made available to the public or proprietary information. Such services typically include assistance in the preparation of program plans; arid preparation of preliminary designs, specifications, or statements of work. ,

(e') "Contrect" ceans any contract, agreement, or other arrangement with the NRC except as provided in Section 20-1.5401(c). '

(f) "Contractor" means any person, firm, unincorporated association, joint venture, co-spons,or, partnership, corporation, affiliates thereof, or their successors in interest, including their chief executives, directors, key personnel (identified in the contract), proposed consultants or subcontractors, which is a party to a contract with the NRC.

(g) "Affiliates" means business concerns which are affiliates of each other when either directly or indirectly one concern or individual ~

controls or has the power to control another, or when a third party controls or has the power to control both (41 CFR 11-1.606-1(e)). ,

.(h)' "Subcentractor" means any subcontractor of any tier which performs work under a contract with the NRC except subcontracts for supplies and subcontracts in amounts of $10,000 or less.

(i) "prospective contractor" or "offeror" means any person, firm, unincorporated association, joint venture, partnership, corporation, or affiliates thereof, including its chief executive, directors, key personnel (identified in the proposal), proposed consultants, or subcontractors, submitting a bid or proposal, solicited or unsolicited, to the NRC to obtain a contract. -

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7590-01 (j) "Potential conflict of interest" means that a factual situation exists that suggests (indicates) that an actual conflict of interest may arise f*om award of a proposed contract. The term "potential conflict of interest" is used to signify those situations which merit investigation prior to contract award in order to ascertain whether award would give rise to an actual conflict or which must be reported to the contracting officer for investigation if they arise during contract performance.

I20-1.5403 Criteria for recognizing contractor organizational conflicts of interest (a) General. Two questions will be asked in detennining whether actual or potential organizational conflicts of interest exist: (1) Are there conflicting roles which might bias a contractor's judgment in relation to its work for the NRC7 (2) May the contractor be given an unfair competitive advantage based on the performance of the contract?

The ultimate determination by NRC as to whether organizational conflicts of interest exist will be made in light of coninon sense and good business judgment based upon the relevant facts disclosed and the work to be i performed. While it is difficult to identify and to prescribe in advance l a specific method for avoiding all of the various situations or relationships

, which might involve potential organizational conflicts of interest, NRC l personnel will pay particular attention to proposed contractual requirements i

which call for the rendering of advice, consultation or evaluation activities, or similar activities that lay direct groundwork for the NRC's decisions on regulatcry activities, future procurements, and

! research programs.

l l (b) Situations or relationships which may give rise to organizational l conflicts of interest. (1) The offeror or contractor shall disclose information concerning relationships which may give rise to organizational conflicts of interest under the following circumstances:

(i) Where the offeror or contractor provides advice and recomr.endations to the NRC in a technical area in which it is also providing consulting assistance in the same arec to any organization regulated by the NRC.

(ii) Where the offeror or contractor provides advice to the NRC on the same or similar matter in which it is also providing assist 3nce to any organization regulated by the NRC.

(iii) Where the offeror or contractor evaluates its own products or '

services, or the products or services of another entity where the offeror or contractor has been substantially involved in their development or marketing.

(iv) Where the award of a contract would otherwise result in placing the offeror or contractor in a conflicting role in which its judgment may be biased in relation to its work for the NRC or may otherwise result in an unfair competitive advantage for the offeror or contractor.

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f 7590-01

. ;~ r V, (2) The contrac+1ng officer may request sNcific information fr's '

an offeror or contractor or may reqGire special gontract provisions such as provided in i 20-1.5405-2 in th'e following circumstances: - ,

(1) Where the offeror or contractor prepaJes specifications which are to be used in compktitive procurements of products or services covered by such.speciffbations, w (ii) Where the offeror or contractor prepares plans for specific approaches or =ethodolegles that e' ' to be incorporated into competitive procurements using such approaches o' methodologies, e~ . s.

(iii) Where thOYleror or contractor is granted access to infomation not available to the public concerning NRC plans l policies, or programs which could form the' basis for a later procurement action.

(iv) Where infomation of itsthe offeror or contractor is granted access to 'pPeprietary competitbrs. '

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(v) Where the award of a contract might otherwise re'sult in placing the offeror or con *ractor in a conflicting role in which its judgment may be biased in relation to its work for the NRC or may otherwise result in an unfair competitive advantage for the offeror or contractor.

(c) Policy spplication guidance. The following examples are illustrative only and are not intended to identify and resolve all -

contractor organizational conflict of interest situations. (1) Example.

The XYZ Corp., in response to a request for proposal (RFP), proposes to undertake certain, analyses of a reactor component as called for in the RFP.

The XYZ Corp.~1s one of several companies considered to be technically well qualified. In response to the inquiry in the RFP, the XYZ Corp.

advises that it is currently performing similar analyses for the reactor manufacturer.

Guidance. An NAC contract tv' that particular rk nomally would not be awarded to the XYZ Corp. ber/

• it wodld be placed in a position

. relationship to its work for in which NRC, Sinceits judgmt'nt'could_be there are other well- w bia' ,ified com% nies , there available would be no reason for considering a waiver of the policy.

(2) Example. TheABC' Corp.,inresponset5aRFP,proposesto perform certain analyses of afeactor component which are unique to one type of advanced reactor. As is the case with other technically qualified companies responding to the RFF, the ABC Corp. is perfoming various projects for several different utility clients. None of the ABC Corp.

projects have any relationship to the work called for in the RFP. Based on the NRC evaluation, the ABC Corp. is considered to be the best qualified company to perform the work outlined in the RFP.

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1590-01 Guidance. An NRC contract normally could be awarded to the ABC Corp. because no conflict of interest exists which would motivate bias with respect to the work. An appropriate cirause would be included in the contract to preclude the ABC Corp. from subsequently contracting for work during the performance of the NRC contract with the private sector which could create a conflict. For example, ABC Corp. would be precluded from the perfomance of similar work for the company developing the advanced reactor mentioned in the example.

(3) Example. As a result of operating problems in a certain type of comercial nuclear facility, it is imperative that NRC secure specific data on various operational aspects of that type of plant so as to assure adequate safety protection of the public. Only one manufacturer has extensive experience with that type of plant. Consequently, that company is the only one with whom NRC can contract which can develop and conduct the testing :rograms required to obtain the data in reasonable time. That company las a definite interest in any NRC decisions that might result from the data produced because those decisions affect the reactor's design and thus the company's costs.

Guidance. Thit situation would place the manufacturer in a role in

• which its judgment could be biased in relationship to its work for NRC.

Since the nature of the work required is vitally important in terms of NRC's responsibilities and no reasonable alternative exists, a waiver of the policy may be warranted. Any such waiver shall be fully documented and coordinated in accordance with the waiver provisions of this policy with particular attention to the establishment of protective mechanisms to guard against bias.

(4) Example. The ABC Co. submits a proposal for a new system for evaluating a specific reactor component's perfomance for the purpose of developing standards that are important to .'e NRC program. The ABC Co.

has advised NRC that it intends to sell the saw system to industry once its practicability has been demonstrated. Other companies in this business are . sing older systems for evaluation of the specific reactor component.

Guidance. A contract could be awarded to the ABC Co. provided that the contract stipulates that no infomation produced under the contract will be used in the contractor's private activities unless such information has been reported to NRC. Information which is reported to NRC by contractors will nomally be disseminated by NRC to others so as to preclude an unfair competitive advantage that might otherwise accrue. When NRC furnishes infomation to the contractor for the perfomance of contract work, it shall not be used in the contractor's private activities unless such infomation is generally available to others. Further, the contract will stipulate that the contractor will infom the NRC contracting officer of all situations in which the information developed under the contract is proposed to be used.

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7590-01

[ (5) Example. The ABC Corp., in response to a RFP proposes to

? assemble a map showing certain seismological features of the Appalachian j fold bpit. In accordance with the representation in the RFP and 120-1.5403(b)(1)(1), ABC Corp. informs the NRC that it is presently doing seismological studies for several utilities in the Eastern United States but none of the sites are within the gaographic area contemplated by the NRC study.

Y Guidance. The contracting officer would nonnally conclude that i award of a contract would not place ABC Corp. in a conflicting role where its judgment might be biased. The work for others clause of $20-J 1.5405-1(c) would preclude ABC Corp. from accepting work during the term

{ of the NRC contract which could create a conflict of interest.

lg (d) Other considerations. (1) The fact that the NRC can identify and later avoid, eliminate, or neutralize any potential organizational

? conflicts arising from the performance of a contract is not relevant to

a detennination of the existence of such conflicts prior to the award of j a contract.

)

(2) It is not relevant that the contractor has the professional s._

reputation of being able to resist temptations which arise from organizational E conflicts of interest, or that a follow-on procurement is not involved, y or that a contract is awarded on a competitive or a sole source basis.

+- 120-1,5404 Representation (a) The following procedures are designed to assist the NRC contracting officer in determining whether situations or relationships exist which r

g may constitute organizational conflicts of interest with respect to a

, particular offeror or contractor.

1r L (b) Representation procedure. The following organizational

conflicts of interest representation provision shall be included in all L solicitations and unsolicited proposals for

(1) Evaluation services or t activities; (2) technical consulting and management support services; e (3) research; and (4) other contractual situations where special organizational I conflicts of interest provisions are noted in the solicitation and would X

be included in toe resulting contract. This representation requirement shall also apply to all modifications for additional effort under the

contract except those issued under the "changes" clause. Where, however, r a statement of the type required by the organizational conflicts of

=

interest representation provision has previously been submitted with regard to the contract being modified, only an updating of such statement

, shall be required.

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E e

7590-01 K .

E F ORGANIZATIONAL CONFLICTS OF INTEREST REPRESENTATION i

I represent to the best of my knowledge and belief that:

The award to of a contract or the modification of an existing contract does (') or does not ( ) involve situations or relationships of the type set forth in 41 CFR I20-1.5403(b)(1).

i (c) Instructions to offerors. The following shall be included in

( all NRC solicitations: (1) If the representttion as completed indicates

,1 that situations or relationships of the type set forth in 41 CFR y 520-1.5403(b)(1)areinvolved,orthecontractingofficerotherwise r determines that potential organizational conflicts exist, the offeror shall provide a statement in writing which describcs in a concise manner 1 all relevant facts bearing on his representation to the contracting officer. If the contracting officer detennines that organizational i conflicts exist, the following actions may be taken: (i) Impose appropriate i conditions which avoid such conflicts, (ii) disqualify the offeror, or g (iii) determine that it is otherwise in the best interest of the United

= States to seek award of the contract under the waiver provisions of

I20-1.5411.

m

% (2) The refusal to provide the representation required by i 20-a 1.5404(b) or upon request of the contracting officer the facts required w by '520-1.5404(c), shall result in disqualification of the offeror for award. The nondisclosure or misrepresentation of any relevant interest

_ may also result in the disqualification of the offeror for award; or if such nondisclosure or misrepresentation is discovered after award, the resulting contract may be termindted. The offeror may also be disqualified

.=

from subsequent related NRC contracts and be subject to such other remedial actions provided by law or the resulting contract.

s E (d) The offeror may, because of actual or potential organizational B conflicts of interest, propose to exclude specific kinds of work from 5 the statements of work contained in a RFP unless the RFP specifically is prohibits such exclusion. Any such proposed exclusion by an offeror f will be consicered by the NRC in the evaluation of proposals. If the NRC considers the proposed excluded work to be an essential or integral

• part of the required work and its exclusion would work to the detriment E of the competitive posture of the other offerors, the proposal must be f rejected as unacceptable.

7 (e) The offeror's failure to execute the representation required by subsection (b) above with respect to invitation for bids will be E considered to be a minor informality, and the offeror will be permitted to correct the omission.

_ i 20-1.5405 Contract clauses 1 20-1.5405-1 General contract clause 0

7590-01 All contracts of the types set forth in 1,20-1.5404(b) shall include 1

the following clauses:

(a) Purpose. The primary purpose of this clausa is to aid in ensuring that the contractor: (1) Is not placed in a conflicting role because of current or planned interest (financial, contractual, organizational, or otherwise) which relate to the work under this contract, and (2) g does not obtain an unfair competitive advantage over other parties by

, virtue of its performance of this contract.

$ (b) Scope. The restrictions described herein shall apply to g perfonnance or participation by the contractor as defined in 41 CFR

% i 20-1.5402(f) in the actitities covered by this clause.

I E (c) Work for others. Notwithstanding any other provision of this ~

t contract, during the term of this contract, the contractor agrees to i forego entering into consulting or other contractual arrangements with i any firm or organization, the result of which may give rise to a conflict L-1 of interest with respect to the work being performed under this contract.

The contractor shall ensure that all employees who are employed full I time under this contract and employees designated as key personnel, if any, under this contract abide by the provision of this clause. If the 4f- contractor believes with respect to itself or any such employee that any proposed consultant or other contractual arrangement with any firm or organization may involve a potential conflict of interest, the contractor shall obtain the written approval of the contracting officer prior to

, execution of such contractual arrangement.

(d) Disclosure after award. (1) The contractor warrants that to i the best of its knowledge and belief and except as otherwise set forth E

in this contract, it does not have any organizational conflicts of

{.

interest, as defined in 41 CFR 520-1.5402(a).

I (2) The contractor agrees that if after award it discovers organizational E

conflicts of interest with respect to this contrace, it shall make an imediate and full disclosure in writing to the contracting officer.

"" This statement shall include a description of the action which the contractor has taken or proposes to take to avoid or mitigate such t conflicts. The NRC may, however, terminate the contract for convenience if it deens such termination to be in the best interests of the government.

(e) Access to and use of information. (1) If the contractor in u

the performance of this contract obtains access to information, such as NRC plans, policies, reports, studies, financial plans, internal data protected by the Privacy Act of 1974 (Pub. L.93-579), or data which has not been released to the public, the contractor agrees not to: (1) Use such information for any private purpose until the information has been released to the public; (ii) compete for work for the Corrrnission based

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. 7590-01 on such information for a period of six (6) months af ter either the completion of this contract or the release of such information to the public, whichever is first, (iii) submit an unsolicited proposal to the government based on such information until one year aftt e the release of such information to the public, or (iv) release the information without prior written approval by the contracting officer unless such information  ;

has previously been released to the public by the NRC.

(2) In addition, the contractor agrees that to the extent it receives or is given access to proprietary data, data protected by the Privacy Act of 1974 (Pub. L.93-579), or other confidential or privileged technical, business, or financial information under this contract, the contractor shall treat such information in accordance with restrictions placed on use of the information.

(3) The contractor shall have, subject to patent and security provisions of this contract, the right to use technical data it produces under this contract for private purposes provided that all requirements of this contract have been met.

(f) Subcontracts. Except as provided in 41 CFR 520-1.5402(h), the contractor shall include this clause, including this paragraph, in subcontracts of any tier. The terms "contract," "contractor," and "contracting officer," shall be appropriately modified to preserve the government's rights.

(g) Remedies. For breach of any of the above proscriptions or for intentional nondisclosure or misrepresentation of any relevant interest required to be disclosed concerning this contract or for such erroneous representations as necessarily imply bad faith, the government may terminate the contract for default, disqualify the contractor from subsequent contractual efforts, and pursue other remedies as may be permitted by law or this contract.

(h) Waiver. A request for waiver under this clause shall be directed in writing through the contracting officer to the Executive Director for Operations (EDO) in accordance with the procedures outlined in i20-1.5411.

I20-1.5405-2 Special contract provisions.

(a) If it is determined from the nature of the proposed contract that organizational conflicts of interest exist, the contracting officer may determine that such conflict can be avoided or after obtaining a waiver in accordance with 520-1.5411, neutralized through the use of an appropriate special contract provision. If appropriate, the offeror may negotiate the terms and conditions of these clauses, including the extent and time period of any such restriction. These provisions include but are not limited to:

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r

/Wva di

~

(1)

Hardware exclusion clauses which prohibit the acceptance of production performed bycontracts following a related nonproduction contract previously the contractor; (2) Software exclusion clauses; (3) personnel) to avoid certain organizational conflicts of inte (4) Clauses which provide for protection of confidential data and guard against its unauthorized use.~

(b) The following additional contract clause may be included as section (i) in the clause set forth in5 20-1.5405-1 when it is determine that award of a follow-on contract would constitute an organizational conflict of interest.

(1) Follow-on effort. (1) The contractor shall be ineligible to participate in NRC contracts, subcontracts, or proposals therefor (solicited or unsolicited) which stem directly from the contractor's performance of work under this contract.

the contracting officer, the contractor shall not perform any techn consulting or management support services work or esaluation activities under this contract on any of its products or services or the products or services of another firm if the contractor has been substan (2) If the contractor under this contract prepares a complete or essentially complete statement of work or specifications, the contractor shall be ineligible to perform or participate in the initial contractual effort which is based on such statement of work or specifications. The contractor shall not incorporate its products or services in such statement of work or specifications unless so directed in writing by the contracting officer, in which case the restriction in this subparagraph shall not apply.

(3) Nothing in this paragraph shall preclude the contractor from offering or selling its standare commercial items to the government.

5 20-1.5406 Evaluation, findings, and contract award The contracting officer will evaluata all relevant facts submitted by an offeror pursuant to the representation recuirements of and other relevant information. After evaluating this information 120-1.5404(b) against the criteria of i 20-1.5403, officer whether organizational conflicts of interest exist with respecta findin to a particular offeror.

If it nas oeen interest exist, then tne contracting determined officer that conflicts of shall eitner:

(a) Disqualify the offeror from award, ,

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. 7590-01 (b) Avoid or eliminate such conflicts by appropriate measures; or

-(c) Award the contract under the waiver provision of i20-1.5411.

520-1.5407 Conflicts identified after award, if potential organizational conflicts of interest are identified after award with respect to a particular contractor, the contracting officer determines that such conflicts do, in fact, exist and that it I would not be in the best interests of the government to terminate the contract as provided in the clauses required by 120-1.5405, the contracting officer will take every reasonable action to avoid, eliminate, or, after obtaining a waiver in accordance with 520-1.5411, neutralize the effects of the identified conflict.

120-1.5408 (Reserved) 120-1.5409 (Reserved) 520-1.5410 Subcontracts The contracting officer shall require offerors and contractors to submit a representation statement in accordance with 120-1.5404(b) from subcontractors and consultants. The contracting officer shall require the contractor to include contract clauses in accordance with 120-1.5405 in consultant agreements or subcontracts involving performance of work under a prime contract covered by this subsection.

I20-1.5411 Waiver In the first instance, determination with respect to the need to seek a waiver for specific contract awards shall be made by the contracting officer with the advice and concurrence of the program office director and the Office of Executive Legal Director. Upon the recommendation of the contracting officer, and after consultation with the Office of the General Counsel, the EDO may waive the policy in specific cases if he determines so.

that it is in the best interest of the United States to do Such actior, shall be strictly limited to those situations in which:

(1) The work to be performed under contract is vital to the NRC program; (2) the work cannot be satisfactorily performed except by a contractor whose interests give rise to a question of conflict of interest; and (3) contractual and/or technical review and supervision methods can be employed by NRC to neutralize the conflict. For any such waivers, the justification and approval cocuments.shall be placed in the Public Document Room.

7590-01 620-1. 5412 Remedies i

In-addition to'such other remedies as may be permitted by law rar contract for a breach of the restrictions in this subpart or for any intentional misrepresentation or intentional nondisclosure of any relevant interest required to be provided for this section, the NRC may debar the contractor from subsequent NRC contracts.

Dated at Washinoton. ' D.C this_ 27th day of March 1979.

For the Nuclear Regulatory Commission 3 A cxtuud%

e Samuel b ut J. Chilk '

Secretary of the Commission 4

1 H.6 Security,

a. Security / Classification Requirements Fom. The attached NRC Form 187 furnishes the basis for providing security and classification requirements to prime Contractors, subcontractors or others (e.g.,

bidders) who have or may have an NRC contractual relationship which requires access to classified infonnation or matter, access on a continuing basis (in excess of 30 days) to NRC Headquarters controlled buildings or otherwise requires NRC photo identification or card-key badges.

b. It is the Contractor's duty to safeguard Restricted Data, Fomerly Restricted Data, and other classified information. The Contractor shall, in accordance with the Comission's security regulations and requirert.ents, be responsible for safeguarding Restricted Data, Formerly Restricted Data, and other classified infomation and protecting against sabotage, espionage, loss and theft, the classified documents and inaterial in the Contractor's possession in connection with the performance of work under this contract.

Except as otherwise expressly provided in this contract, the Contractor shall, upon completion or termination of this contract, transmit to the Comission any classified mdtter in the possession of the Contractor or any person under the Contractor's control in connection with perfomance of this contract.

If retention by the Contractor of any classified matter is required after the completion or temination of the contract and such retention is approved by the Contracting Officer, the Contractor will cortplete a certificate of possession to be furnished to the Comission specifying the classified matter to be retained. The certification shall identify the items and types or categories of matter retained, the conditions governing the retention of the matter and their period of retention, if known.

If the retenticn is approved by the Contracting Officer, the security provisions of the contract will continue to be applicable to the matter retained,

c. In connection with the perfomance of the work under this contract, the Contractor may be furnished, or may develop or acquire, proprietary data (trade secrets) or coi.Mdential or privileged technical, business, or financial information, including Comission plans, policies, reports, financial plans, internal data protected by the privacy Act of 1974 (P.L.93-579),

or other information which has not been released to the public or has been determined by the Comission to be otherwise exempt from disclosure to the public. Contractor agrees to hold such information in confidence and not to directly or indirectly duplicate, disseminate, or disclose such information in whole or in part to any other perscn or organization except as may be necessary to perform the work under this contract. Contractor agrees to return such information to the Comission or otherwise dispose of it either as the Contracting Of ficer may from tirne to time direct during the progress of the work or in any event as the Contracting Officer shall direct upon completion or temination of this contract. Failure to comply with this clause shall be grounds for temination of this contract.

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c. Regulations. The Contractor agrees to conform to all security regulations and requirements of the Commission,

e. Definition of Restricted Data. The tem "Restricted Data " as usedinthisclause,meansalldataconcerning(1) design, manufacture, or utilization of atomic weapons; (2) the production of special nuclear material; or (3) the use of special nuclear material in the production of energy, but shall not include data declassified or removed from the Restricted Data category pursuant to section 142 of the Atomic Energy Act of 1954, as amended.

f. Definition of Formerly Restricted Data. The term "Formerly Restricted Data," as used in this clause, means all data removed from the Restricted Data category under section 142-d. of the Atomic Energy Act of 1954, as amended.

g. Security Clearance Personnel. The Contractor shall not permit any individual to have access to Restricted Data, Fonnerly Restricted Data, or other classified information, except in accordance with the Atomic Energy Act of 1954, as amended, and the Comission's regulations or requirements applicable to the particular type or category of classified information to which access is required,

h. Criminal Liabilities. It is understood that disclosure of Restricted Data, Formerly Restricted Data, or other classified information relating to the work or services ordered hereunder to

' any person not entitled to receive it, or failure to safeguard any l Restricted Data, Formerly Restricteo Data, or any other classified i matter that may come to the Contractor or any person under the Contractor's control in connection with work under this contract, may subject the Contractor, its agents, employees, or subccntractors to criminal liability under the laws of the United States. (See the Atomic Energy Act of 1954, as amended, 42 U.S.C.

l 2011 et seq.; 18 U.S.C. 793 and 794; and Executive Order 12356.)

l l 1. Subcontracts and Purchase Orders. Except as otherwise authorized I

in writing by the Contracting Officer, the Contractor shall insert provisions similar to the foregoing in all subcontracts and purchase orders under this contract.

j. In performing the contract work, the Contractor shall assign classifications to all documents, material, and equipment originated or generated by the Contractor in accordance with classification guidance by the Comission. Every subcontract and purchase order issued hereunder involving the origination or generation of classified documents, material, or equipment shall provide that the subcontractor or supplier shall assign classifications to all such documents, material, and equipment in accordance with classification guidance furnished by the Contractor.

F.2 Technical Progress Report The Contractor shall provide a monthly Technical Progress Report to the Project Officer and the Contracting Officer. The report is due within 15 calendar days after the end of the report period and shall identify the title of the project, the contract number, project mana principal investigator, the contract period of performance,ger andand/or the period covered by the report. Each report shall include the following:

a. A listing of the efforts completed during the period; milestones reached or, if missed, an explanation provided;

b. Any problems or delays encountered or anticipated and recomendations for resolution; (if the recomended resolution involves a contract modification, e.

requirements, level of effort (cost)g.,orchange in work schedule delay, the Contractor shall submit a separate letter to the Contracting Officer identifying the re' quired change and estimated cost impact).

c. A sumary of progress to date; and

d. Plans for the next reporting period.

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J Financial Status Report The Contractor shall provide a monthly Financial Status Report to the Project Officer and the Contracting Officer. The report is due within 15 calendar days after the end of the report period and shall identify the title of the project, the contract number, project manager and/or principal investigator, the contract period of performance, and the period covered by the report.

Each report shall include the following for each discrete task:

a. Provide the total estimated cost (value) of the project as reflected in the contract, the amount of funds available in the contract to date, and the balance of funds required to complete the work as follows:

II Total Estimated Contract Amount 2 Total Funds Obligated to Date 3 Total Costs Incurred this Reporting Period 4 Total Costs Incurred to Date

5) Balance of Obligations Remaining

6) Balance of Funds Required to Complete Contract

b. Detail of all direct and indirect costs incurred during the reporting period for each task.

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