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This directive was reviewed and certified as current and necessary by (Enter Name),
(Enter Title) Director, Office of Management, Budget and Evaluation/Chief Financial Officer, XX-XX-XXXX.

U. S. Department of Energy	ORDER
Washington, D.C.	DOE O 130.1

	Approved: 9-29-95
SUBJECT: BUDGET FORMULATION

OBJECTIVE. The Department of Energy (DOE) shall prepare and submit sound budget requests
to the Office of Management and Budget (OMB) and the Congress in a timely, cost-effective
manner and in accordance with OMB directives and applicable federal laws. To this end, this
Order prescribes the DOE budget formulation process with the following objectives.

a. To establish policy provisions for the Department s annual budget formulation
process.

b. To define the roles and responsibilities of Departmental Elements and contractors
participating in the Department s annual budget formulation process.

c. To explain the relationship and purpose of other budget guidance and information
used in development of budget data; for example, the DOE Budget Formulation
Instructions, Budget Call Guidance, and OMB Circular A-11).

2. CANCELLATION.

a. DOE 5100.3, FIELD BUDGET PROCESS, of 8-23-84.

b. DOE 5100.4, INTERNAL REVIEW BUDGET PROCESS, of 10-31-84.

c. DOE 5100.5, OFFICE OF MANAGEMENT AND BUDGET - BUDGET
PROCESS, of 7-21-83.

d. DOE 5100.6A, CONGRESSIONAL BUDGET REVIEW, of 5-18-92.

3. APPLICABILITY. The provisions of this Order apply to all Departmental Elements for
the purpose of accomplishing the Department's budget formulation process, which
includes the development, review, and exchange of budget data. Specific provisions for
Management and Operating (M&O) and Environmental Restoration Management
Contractors (ERMC) are set forth in Attachment 1, Contractor Requirements Document.

4. REQUIREMENTS.
a. The Department's annual budget formulation process consists of four distinct
phases. Detailed reporting requirements for each phase are contained in the DOE
Budget Formulation Instructions.

(1) Field Budget Process. The field budget process is the first phase of the
Department's annual budget formulation process. It is the process through
which Field Offices prepare and submit field budget data to Headquarters
Elements for use in the corporate review budget process.

(2) Corporate Review Budget (CRB) Process. The corporate review budget
process is the second phase of the Department's annual budget formulation
process. It is the process whereby Headquarters organizations use, among
other budget related information, field budget data and spring planning
decisions to develop initial organizational budget requests that are jointly
evaluated and considered in the Department's internal budget review,
resulting in CRB budget allowances.

(3) Office of Management and Budget (OMB) Budget Review Process. The
OMB budget review process is the third phase of the Department's annual
budget formulation process. It is the principal mechanism for preparing the
Department's annual budget submission to the OMB. The Department's
OMB request is based on the Secretary's final budget allowances resulting
from the CRB process.

4) Congressional Budget Review Process. The congressional budget review
process is the final phase of the Department's annual budget formulation
process. It is based on final Presidential funding and policy determinations
resulting from the OMB budget review process.

b. Departmental Elements and contractors shall use a performance-based, results-
oriented approach to formulating budget requests.

c. Budget requests shall fully support the goals and objectives of the Departmental
Strategic Plan.

d. Budget requests shall fully justify and describe intended program outputs and
outcomes rather than inputs and processes. Outputs and outcomes shall be
measurable and verifiable to the maximum extent practicable.

e. Budget formulation activities shall be conducted in accordance with the
requirements described in DOE Budget Formulation Instructions, CFO budget
calls, and OMB Circular A-11, "Preparation and Submission of Budget Estimates."
See Attachment 2, which explains the relationship of this Order to other budget
guidance.

f. Budget requests, including all budget-related materials, shall be based on cost
estimates that have been thoroughly reviewed and deemed reasonable by the
cognizant Field Office and Headquarters program organization.

g. Budget formulation materials shall be prepared and submitted in accordance with
the requirements described in DOE Budget Formulation Instructions, CFO budget
calls, OMB Circular A-11, and other budget requests issued by the CFO.

5. RESPONSIBILITIES.

a. Chief Financial Officer (CFO) through the Office of Budget.

(1) Oversees and directs the Department's annual budget formulation process.

(2) Develops and issues budget requirements and guidance through budget
calls and other formal or supplemental requests, as necessary.

(3) Develops, issues, and maintains the DOE Budget Formulation Instructions,
publishing revisions as necessary.

(4) Provides central coordination and maintains Budget Office points-of-
contact for all four phases of the annual budget formulation process.

(5) Maintains a list of designated principal points-of-contact for Headquarters
and Field Elements and contractors participating in the budget formulation
process.

(6) Supports and provides assistance to the Office of Policy in coordinating the
Department's spring planning process with the budget formulation process.

(7) Coordinates with the Office of Human Resources and Administration to
ensure that full time equivalent (FTE) guidance is appropriately integrated
into the budget formulation process.

(8) Provides assistance to Headquarters Elements in the development of their
budget requests.

(9) Reviews CRB budget requests to:

a Ensure program compliance with Secretarial planning decisions
resulting from the spring planning process, CRB budget call, and
the DOE Budget Formulation Instructions;

b Analyze budget requests to assess that program activities are
reasonably priced out and that follow-on program activities can be
adequately funded within outyear funding targets.

(10) Reviews OMB budget requests to ensure program compliance with final
Secretarial decisions resulting from the CRB process, the OMB budget
call, OMB Circular A-11, and DOE Budget Formulation Instructions
reporting requirements.

(11) Participates in OMB budget hearings and provides additional data if
requested in support of the Department's budget request.

(12) Reviews congressional budget materials to ensure compliance with final
Presidential policy and economic decisions, OMB allowance levels, the
congressional budget call, DOE Budget Formulation Instructions, and
OMB Circular A-11 requirements. Makes recommendations for revisions
to Headquarters Elements, as necessary.

(13) Provides congressional budget materials to OMB and coordinates OMB
comments with the appropriate Headquarters Elements as necessary.

(14) Briefs Appropriations and Authorization subcommittee staffs on the
Department's budget and provides additional data as requested.

(15) Supports Departmental officials testifying at Congressional budget hearings
and provides additional data to Congress, as requested, in support of the
Department's budget request.

b. Office of Policy.

(1) Supports and provides assistance to the CFO in coordinating the
Department's spring planning process with the budget formulation process.

(2) Designates and maintains a Policy principal point-of-contact for the budget
formulation process.

c. Headquarters Program Organizations that participate in the budget formulation
process.

(1) Prepare programmatic budget requirements and guidance needed by Field
Elements to develop budget data required at Headquarters for the CRB
process. Submit guidance to the Office of Budget in a timely manner for
issuance in the field budget call.

(2) Designate and maintain a principal point-of-contact for the budget
formulation process.

(3) Develop internal procedures and controls to ensure compliance with all
CFO requirements and to ensure that all field budget data requirements are
submitted through the field budget process to eliminate the need for
unilateral budget requests to Field Elements.

(4) Provide the Office of Budget with new or unforeseen field budget data
requirements that need to be issued supplemental to the field budget call.

(5) Work through Field Office-designated budget points-of-contact rather than
through direct interaction with contractors on field budget matters.

(6) Develop CRB budget requests consistent with the Department's Strategic
Plan, Secretarial decisions resulting from the spring planning process, the
CRB budget call, and DOE Budget Formulation Instructions.

(7) Develop OMB budget requests in compliance with final Secretarial budget
decisions resulting from the CRB process, the OMB budget call, OMB
Circular A-11, and DOE Budget Formulation Instructions reporting
requirements.

(8) Participate in OMB budget hearings and provide, through the Office of
Budget, additional data if requested by OMB in support of the program's
budget request.

(9) Develop congressional budget requests in compliance with final
Presidential policy and economic decisions, and supporting OMB funding
allowance levels. Requests shall also comply with guidance, formats, and
reporting requirements contained in OMB Circular A-11, the
Congressional Budget Call, and DOE Budget Instructions.

(10) In coordination with the Office of Budget, brief appropriations
subcommittee staffs on the organization's portion of the Department's
budget and provide additional data to Congress through the Office of
Budget, as requested.
(11) Testify at congressional budget hearings, if requested, and provide
additional data to Congress, as needed, in support of the program's budget
request.

d. Other Headquarters Staff Offices that participate in the budget formulation
process.

(1) Provide requirements and guidance needed by Departmental Elements to
develop budget data on crosscutting areas required for analysis during the
budget formulation process. Submit such guidance to the Office of Budget
in a timely manner to ensure the DOE Budget Formulation Instructions
contain the most current guidance available.

(2) Designate and maintain a principal point-of-contact for the budget
formulation process.

(3) Develop internal procedures and controls to ensure that all budget data
requirements are submitted through the budget formulation process to
eliminate the need for unilateral budget requests to Field and Headquarters
Elements.

(4) Provide the Office of Budget with new or unforeseen budget data
requirements that need to be issued supplemental to CFO budget calls.

(5) Work through Field Office-designated budget points-of-contact rather than
through direct interaction with contractors on field budget matters.

e. Heads of Field Offices.

(1) Develop and maintain budget guidance, policy, and procedures for the field
budget process in accordance with this Order, the field budget call, and the
DOE Budget Formulation Instructions.

(2) Maintain and issue current Field Office budget policies, practices, and
procedures in support of the annual field budget process through Field
Office directives and manuals.

(3) Designate a principal point-of-contact for the budget formulation process.

(4) Oversee the field budget process practices and procedures for the Field
Office and associated contractors. This includes proper oversight of
budget formulation, documentation, cost estimating, and pricing validation
reviews (as required) of contractor budget submissions.

(5) Conduct budget validation reviews in a timely manner to ensure the data
provided to Headquarters organizations for use in developing budgets have
been reviewed and are deemed reasonable. As part of the field budget
submission to Headquarters organizations, submit documentation of the
Field Element budget review of contractor budget estimates. This
documentation should report any relevant findings and actions to address
such findings.

(6) Facilitate interactions between Headquarters Elements and contractors
involving field budget matters.

(7) Ensure that field budget submissions are in compliance with guidance and
reporting requirements issued in the field budget call and DOE Budget
Formulation Instructions.

(8) Through the contracting officer, ensure compliance with this Order by
M&O and Environmental Restoration Management contracts.

(9) Notify and provide the Office of Budget with any requests for budget data
received directly from Headquarters Elements not contained or referenced
in the field budget call or not contained in supplementary field budget
guidance issued by the CFO. Such notification is essential in determining
whether the direct request is duplicative or adversely impacts the
Department's field budget process.

6. CONTACT. For additional information, contact Melissa Andersen, Office of Budget,
Budget Formulation (CR-132), at 202/586-8413.

BY ORDER OF THE SECRETARY OF ENERGY:

ARCHER L. DURHAM
Assistant Secretary for
Human Resources and Administration
CONTRACTOR REQUIREMENTS DOCUMENT

The following requirements shall apply to all Management and Operating Contractors (M&O) and
Environmental Restoration Management Contractors (ERMC).

1. Comply with all requirements set forth in the field budget process chapter of the DOE Budget
Formulation Instructions.

2. Submit all budget requests through the cognizant Operations or Field Office.

3. Designate a principal point-of-contact for the budget process.

4. Establish formal practices and procedures for performing budget process functions in
accordance with the DOE Budget Formulation Process, Field Office guidance, and the DOE
Budget Formulation Instructions. This includes assignment of responsibilities, preparation of
budget materials, cost estimating, internal validation reviews, and documentation as required.

5. Develop and maintain a budget formulation manual in accordance with the DOE Budget
Formulation Process, Field Office guidance, and the DOE Budget Formulation Instructions.

6. Develop and submit budget materials in accordance with guidance provided by the cognizant
Field Office, the field budget call, and the DOE Budget Formulation Instructions.

7. Notify and provide the cognizant Field Office with any requests for budget data received directly
from Headquarters Elements that are not contained in the CFO-originated Field Office guidance.
Wait for a determination to proceed on direct field budget requests from the DOE Field Office
before initiating action on such requests. ATTACHMENT 2

THE RELATIONSHIP OF DOE 130.1 WITH OTHER BUDGET GUIDANCE.

DOE 130.1 establishes the budget formulation process. It sets forth budget formulation policy,
describes the overall framework for each phase, and defines roles and responsibilities. DOE 130.1 does
not provide all the varied and continually changing reporting requirements for each new budget
formulation cycle. Budget guidance that is subject to continual change is provided through other
related budget documents. These guidance documents are described below.

1. CFO BUDGET CALLS. Budget calls supplement this Order and provide specific information
and requirements relevant to a particular phase of the budget formulation process. They contain
items such as funding levels, due dates, and escalation rates and describe any new or changed
data requirements. They also convey necessary revisions to the DOE Budget Formulation
Instructions.

2. DOE BUDGET FORMULATION INSTRUCTIONS. The Budget Formulation Instructions
contain detailed budget guidance such as definitions, key concepts, procedures for budget
validation reviews, as well as the specific reporting requirements for each phase of the
Department's annual budget formulation process. The Instructions are updated as needed to
ensure all budget guidance is consistent with Departmental, OMB, and Congressional directives
and applicable Federal laws.

3. OMB CIRCULAR A-11 - "PREPARATION AND SUBMISSION OF BUDGET
ESTIMATES". OMB issues an annual update to Circular A-11 for the succeeding budget cycle.
Print materials for the President's Budget Appendix shall be developed according to the
guidance issued in this Circular. In addition, several sections of Circular A-11 require the
submission of crosscutting budget data for inclusion in the President's Budget. These data shall
also be developed in compliance with the formats and reporting requirements specified in the
Circular.

4. OMB ALLOWANCE GUIDANCE. Congressional budget submissions shall be written to final
OMB allowance levels. These funding levels are based upon final Presidential policy and
funding decisions and are typically provided at the decision unit level of detail. OMB allowances
shall be issued to Headquarters Elements through the budget control table provided with the
annual congressional budget call.

5. CFO MEMORANDA provide supplemental guidance and are used to request additional budget
data, as needed.