ML20210S080
| ML20210S080 | |
| Person / Time | |
|---|---|
| Issue date: | 06/16/1997 |
| From: | Callan L NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | |
| References | |
| SECY-97-123, SECY-97-123-01, SECY-97-123-1, SECY-97-123-R, NUDOCS 9709050144 | |
| Download: ML20210S080 (9) | |
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4 POLICY ISSUE June 16. 1997 SECY-97-123 EDB:
The Commissioners EBE:
L. Joseph Callan Executive Director for Operations
SUBJECT:
IMPROVING OPPORTUNITIES FOR UNIVERSITIES TO PARTICIPATE IN THE NRC RESEARCH PROGRAM PURPOSE:
- 1. To inform the Commission of the current level of university participation in research projects.
- 2. To obtain Commission endorsement of the staff's approaches to encourage additional university participation in research that will provide more direct benefit to NRC's research program, than has been provided in the past through the Educational Grant Program.
ISSUE-What means are available and negally supportable to provide avenues for expandina university involvement in NRC's research program?
SUMMARY
In response to COMSECY-96 066, the staff considered a range of options open to the NRC and concluded that use of certain contracting and financial assistance mechanisms rt.n im) rove opportunities for universities to participate in NRC research work.
T1e staff also found that, short of specific legislation which changes the laws which govern NRC procurement of goods and services. NRC Hence, give preferential treatment to universities in the award of contracts.
cannot except where a unique capability can be shown to exist, universities Contacts:
NOTE:
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The Commissioners must compete for contracts like other bidders.
Accordingly, to accomplish the Comission's objectives in COMSECY-96 066. within the current legal and regulatory framework and without increasing grants, the staff proposes a variety of activities aimed at making universities more informed and competitive to facilitate placement of NRC research work with universities.
This integrated approach includes waiving the requirement to publicize proposed research procurements in the Commerce Business Daily (CBD). expanding use of cooperative agreements, increasing university awareness of NRC research opportunities through the use of Internet capabilities and personal interaction, and expanding use of multiple award contracting mechanisms.
BACKGROUND:
In response to Strategic Assessment issue DSJ 22. "Research." submitted to the Commission for consideration in the fall of 1996. the Commission issued COMSECY 96 066 which, among other things, asked the staff to consider additional approaches to norking with universities beyond the existing Educational Grants Program and to consider an appropriate higher goal for the percentage of research carried out directly by universities.
Currently, the Office of Nuclear Regulatory Research (RES) uses grant, cooperative agreement, and contract mechanisms (see Attachment 1 for a more detailed description of these instruments) when placim work with universities.
RES has active university projects in almost all of its programmatic areas, and university research contributes to key programs such as thermal-hydraulics.
While the RES program tudget has declined from
$68.7 million in FY 1996 to $56.3 million in FY 1997, funding going directly to universities has increased by $0.4 million for a total expenditure to universities of nearly 7 percent of the FY 1997 RES budget.
In FY 1996 RES funded projects totalling $2.9 million at 15 universities.
Also in FY 1996, RES awarded educational grants totalling $0.8 million to 12 universities for an FY 1996 total of $3.7 million awarded to universities.
in FY 1997, as of May 30, 1997, RES funded or plans to fund projects at 16 universities totalling nearly s3.35 million.
In addition RES expects to enter into coo universities. perative agreements totalling $0.75 million with two more i
The FY 1997 funding awarded or planned for universities to date is $4.1 million and the potential exists for additional awards to universities in the remaining four months of the fiscal year.
The FY 1996 and FY 1997 funding levels to universities discussed above do not reflect RES funds supporting subcontracts with universities.
For the period May 1997 through April 1998, university subcontracts under RES commercial contracts are projected to exceed $1.4 million.
DISCUSSION:
The RES Educational Grdnts Program has been in existence for many years and traditionally has used 1 percent of the RES program budget.
Although the research derived from educational grants has proven useful to NRC, unlike a contract, the principal focus of a grant is for the educational institution to
The Commissioners carry out a public purpose.
Under a grant, NRC can neither direct the research nor can the grant be awarded primarily for the benefit of the NRC.
In its most recent budget request, RES reduced its Educational Grants Program budget sub activity from 1750K in FY 1997 to $200K in FY 1998 2001.
RES has terminated its formal Educational Grants Program and will only issue grants in the future when they are the best mechanism for achieving a purpose of the research program.
In COMSECY 96 066, the Commission suggests that RES coordinate with the Division of Contracts and Property Management (DCPri) in exploring innovative ways to engage universities consistent with the NRC designation as a Procurement fleinvention Laboratory (PRL), Under the PRL, NRC seeks innovative a>proaches to streamline the acquisition process and, generall tiose requirements of the Federal Acquisition Regulation (FAR)y, may waive which are not based directly on legislation.
The staff explored a variety of innovative approaches and streamlining measures available under the PRL to increase university participation in NRC's research program, including those provided by recent procurement reform legislation. The staff concluded that recent reforms and other innovative approaches as described below can be combined to enhance opportunities for university participation in NRC's research programs.
The staff proposes the following steps as an integrated approach to increase university participation:
a.
Waiver of advance oublic notice.
The CICA (Competition in Contracting Act of 1984) perm)ts walver of the advance public notice requirement where a case can be made that competition will not be restricted, if an agency's request is approved by Office of Federal Procurement Policy (0FPP) and the Small Business Administration.
The NRC staff considered whether this waiter authority could be used to increase contracting with universities.
Under the PRL, NRC previously obtained a temporary waiver effective through April 1998, to permit Contracting Officers to exempt selected research and technical assistance procurements from publishing advance 30tice in the CBD.
The waiver was granted on the basis that the contractira community, which can successfully compete for these contracts, is small and known to NRC, and therefore, competition,would not be restricted by limiting the solicitation to known sources.
(Under the terms of the waiver, small businesses that express an interest in a proposed contract are also given an opportunity to compete.) Therefore, in instances where universities are considered the only known source for research projects, NRC may waive the public notice requirement and solicit proposals from those universities, Under the PRL, HRC has waived the CBD requirement for certain RES projects and solicited pro >osals from a limited number of sources, including universities.
RES and DCPM will review future research projects for applicability of this waiver provision and will limit competition to universities where appropriate,
The Comissioners b.
Ernand use of roonerative aareements with universities.
To the extent that future work involves projects for the oublic benefit and from which the NRC can also derive tangible benefit, R S will utilize cooperative agreements as a vehicle to accomplish increased involvement with universities.
Unlike commercial contracts. there is no statutory requirement to compete cooperative agreements, in addition, NRC recently streamlined the procedures for awarding cooperative agreements.
Accordingly, NRC can use a simplified cooperative agreement process to make awards directly to universities where the work to be performed is mutually beneficial and serves a public purpose.
The cooperative agreement mechanism must not be used for acquisition of supplies or services for the direct benefit of the agency and may not be used to avoid competition.
Under a cooperative agreement, the NRC can be substantially involved in the work being performed.
NRC would be able '
to benefit from the technical expertise available at universities, along with other interested parties, in that vein RES currently is examining the possibility of entering into cooperative agreements with two i
university consortia / centers of expertise for work in the areas of human performance and digital instrumentation and control.
In the future. RES will continue to seek opportunities to use cooperative agreements.
lncrease university awareness of research contractina o?oortunities at c.
h&G.
lhe statf will increase university awareness of t1e NRC research program and inform universities of all contract and cooperative agreement opportunities in order to promote more responsive proposals.
First, RES and DCPM will work together to develop Internet comunication links with universities to inform them of opportunities and new procurement innovations which can assist in their participation in NRC procurements.
For example, DCPM maintains a " Contracting with NRC" Internet homepage containing a forecast of contracting opportunities and information on the bidders mailin referred, using Internet e mail. g list to which universiti c can be RES and DCPM will contact universities with nuclear engineering departments, and any other universities and colleges that have shown an interest in contracting with NRC to invite them to complete an application so that we may add them to the bidders mailing list.
(As of this writing, low us to automatically notify them only one university has askad to be placed on this list.)
This will al of contracting and cooperative agreement opportunities.
Second RES will seek an invitation to brief Nuclear Engineering Department Heads when they meet at one or more American Nuclear Society meetings on the overall RES program and its prospective contracting opportunities.
Third. RES and DCPM will schedule one or more vi.cits to universities or schedule public workshops wherein the RES program and its associated general contracting opportunities will be explained to other interested universities and colleges.
As a result of attending these meetings and workshops, universities with research capabilities may be more responsive to RES Requests for Proposals.
Fourth. COMSECY-96 066 alluded to the establishment of research consortia.
NRC can encourage the establishment of consortia and universities can be made aware of contracting opportunities where forming consortia might be an advantageous way to submit successful proposals.
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The Commissioners Recently. RES announced a large procurement opportunity in the thermal hydraulics area, and more than one university consortium submitted a aro)osal. At the briefings and wcrkshops mentioned above. RES will ligilight areas where teaming of expertise and resources of more than one university would be highly desirable.
Finally. universities will be
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invited to attend the annual Water Reactor Safety Information Meeting to increase their general awareness of nuclear reactor safety research that l
is sponsored by NRC and other organizations and countries around the world.
d.
Utilize multi)le award contractina mechanisms to address research
- 1ssues, lhe 3 road Agency Announcement (t1AA)~is a competitive contract mechanism used to solicit basic research " ideas" and present solutions to research issues for which NRC has not yet decided upon a plan of action.
Multip. : awards may be made as a result of a single BAA Anneuncement.
BAAS may be used to fulfill requirements for scientific study and experimentation directed toward advancing the state-of-the art or increasing knowledge / understanding rather than focusing on a specific solution.
Selection is based upon the merit of each proposal's solution to the technical problem.
BAAS have been used by RES with considerable success and have resulted in multiple awards to universities.
RES will continue to use BAAS as a contracting mechanism when technical problems of a suitable nature arise.
RES will work with DCPM to ensure timely publication of these announcements in the CBD and on the " Contracting with NRC" homepage.
Also, under Federal wide procurement reform, multiple award task order contracting is a mechanism encouraged by the Office of Federal Procurement Policy (0FPP) and may increase contracting op>ortunities for universities.
Recent legislative changes implemented in AR Section t
16.504(c) establish a preference for awarding multiple task order contracts under a single competitive solicitation for the same or similar requirement to two or more sources.
Formal competition is not required for placement of individual task orders under these contracts.
Each task order is placed after consideration of the contractors' capabilities to meet the agency's need.
Previously, award of individual task orders had to be formally competed or placed under a rotational system.
Because this mechanism parmits contract award to more than one qualified competitor. the chances for contract award and task order placement to qualified universities willing to compete for NRC work are greater.
RES plans to review future requirements for the possibility of using multiple awards as a viable mechanism which will increase the opportunity to place work with qualified universities.
The staff also considered other alternatives for limiting competition to universities including:
exceptions from full and open competition to, restrict contracts to universities; and, limiting solicitations to 1
~
The Comissioners universities under simplified acquisition procedures.
The staff concluded that existing statutes preclude such limitations, tbsent the
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existence of a unique capability at the university or other com)elling circumstances. A sumary of this analysis is provided in Attacament 2.
With regard to an appropriate higher goal for research carried cut directly by universities. RES proposes a range of 7 percent to 10 percent of its annual appropriated contract sup) ort budget.
This compares to a level of 5.4 percent achieved in Y 1996 and our projected estimate for FY 1997 of 7 percent.
There are no resource ramifications to the RES budget for any of the approaches discussed above. All alternatives that are proposed can be accomplished with resources provided in the existing RES budget.
COORDINATION:
The Office of the General Counsel has no legal objection to this paper.
OCF0 has no objection.to the resource estimates contained in this paper.
RECOMMENDATION:
That the Commission endorse the integrated approach discussed above.
L. J# eph Callan Executive Director for Operatiors Attachnoits: As stated.
Coamissioners' comments or consent should be provided directly to the office of the Secretary by cob Wednesday, June 25, 1997.
Commission Staff office comments, if any, should be submitted to the Commissioners NLT Wednesday, July 2. 1997, with an information copy to the office of the Secretary.
If the paper is of such a nature.that it requires additional review and comment, the Commissioners and the Secretariat should be apprised of when comments may be-expected.
DISTRIBUTION:
Commissioners oGC-oIG oPA oCA Clo CFo EDo SECY
Descriptions of Contracts, Grants, and Cooperative Agreements A contract is used when the purchase is for the direct benefit or use of the Federal government and is governed by the Federal Acquisition Regulation (FAR) provisions.
A arart anreement is a legal instrument reflecting a relationship between the Unitec States lovernment and a recipient when:
- 1) money, property or services is transferred to the recipient to accomplish a public purpose of support or stimulation (as opposed to the acquisition of property or services for the direct benefit or use of the l
United States Government): and,
- 2) substantial involvement is not expected between the executive agency and the recipient when carrying out the activity contemplated ir the agreement.
Agency involvement under a grant may include:
- 1) approval of recipient plans or applications prior to award:
- 2) Federal oversight during the project such as site visits, performance obporting. financial reporting, and audits to ensure that standards, re
)ectives, terms, and conditions of the project are acctnplished:
- 3) general statutory requiraments agreed to in advance of award such as civil rights, environmental protection, and provisions for the handicapped:
- 4) review of performance aftor completion: and.
Si unanticipated agency invr Ivement to correct deficiencies. in project or financial performance from the terms of the assistance instrument.
A cocoerative v.reement is a legal instrument reflecting a relationship between the United States Government and a recipient when:
- 1) money, property or services are transferred to a recipient to accomplish.a public purpose of support or stimulation-(as opposed to the acquisition of property or services for the direct benefit or use of the United States Government): and,
- 2) substantial involvement is expected between the executive agency and
.the recipient when carrying out the activity contemplated in the agreement.
==
9 I Substantial involvement in a cooperative agreement may include:
- 1) authority to halt activity if specifications or work statements are not met:
- 2) review and approval of one stage of work before another can begin:
- 3) agency and recipient collaboration or joint participation:
- 4) monitoring to permit specified kinds of direction or redirection of the work because of interrelationships with other projects:
- 5) highly prescriptive agency requirements which limit recipient discretion: (administrative requirements such as security, document format)
- 6) review and approval of key personnel:
- 7) substantial, direct agency operational involvement or participation durir.g the assisted activity.
The rationale for use of grants and cooperative agreements is the same: for public purpose and benefit.
The key difference between the two instruments is that the agency has substantial involvement under a cooperative agreement.
Substantial involvement means that the agency and recipient may collaborate or joint 1 participate in the project and the recipient can expect closer agency oversi ht and control for management of the project, which is different from the li ited Federal oversight over reporting and funding for grants.
4
1 i
Analysis of Alternatives for Restrictino Comoetitio, to Universities Under the 1
NRC's Procurement Reinvention La )oratorv i
The Competition in Contracting Act of 1984 (F.L '98 369) (CICA) promotes full and open competition by limiting exemptions and permits only a few very i
specific exceptions.
Because these are legislated requirements, the NRC has limited abilit opportunities.y to restrict competition so as to give universities increasedIn 3
were examined and are discussed below:
4 FAR Exceotion to Com6etition l
The staff also considered whether an exception from the use of full and open competition exists which would in effect grant a waiver to limit some competitions to universities.
The FAR, in implementing the CICA, permits the i
agency to use other than full and open competition when it is necessary to award the contract to a particular source or sources in order to establish or maintain an essential engineering, research, or development capability to be provided by an educational or other non profit institution (48 CFR 6.302-3 (1996)).
This same exce) tion was the basis for placing certain work at NRC's Federall whether,y Funded Researc1 and Develo> ment Center. -NRC staff considered i f supported by facts, the 4RC might make a case that because the academic field of nuclear engineering is shrinking at a rate that jeopardizes future ability of the agency to hire and contract for nuclear engineering i
professionals, competition limited to universities is necessary to ensure that i
future needs can be met. - The staff concluded that this authority is intended for meeting current needs of the agency rather than for preserving an academic field which trains professionals to meet future needs - Therefore, this-exception would not be appropriate as a way to limit procurement opportunities to universities, a
Simolified Acauisitions Simplified <cquisitions (purchase orders) were also examined for applicability i
to universities.
Section 4004 of the Federal Acquisition Streamlining Act of 1994 sets aside all simplified acquisitions over $2,500 and equal to or less than $100,000 for small business concerns.
Since they do not qualify as small businesses concerr.s, universities normally would not qualify-for simplified acquisitions unless no qualified small business can do the work.
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