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U.S. Department of Energy ORDER
Washington, D.C. DOE O 413.2B
Approved: 4-19-06
Review: 4-19-08
Expires: 4-19-10
SUBJECT: LABORATORY DIRECTED RESEARCH AND DEVELOPMENT
1. OBJECTIVE. To establish Department of Energy (DOE)
requirements for laboratory directed research and development
(LDRD) while providing the laboratory director broad flexibility
for program implementation. The objectives of the LDRD program
are to—
· maintain the scientific and technical vitality of the
laboratories;
· enhance the laboratories’ ability to address future DOE/NNSA
missions;
· foster creativity and stimulate exploration of forefront
science and technology;
· serve as a proving ground for new concepts in research and
development; and
· support high-risk, potentially high-value research and
development.
2. CANCELLATION. DOE O 413.2A, Laboratory Directed Research
and Development, dated 01-08-01. Cancellation of an Order does
not, by itself, modify or otherwise affect any contractual
obligation to comply with the Order. Canceled Orders that are
incorporated by reference in a contract remain in effect until
the contract is modified to delete the references to the
requirements in the canceled Orders.
3. APPLICABILITY.
a. DOE Elements. The provisions of this Order apply to all DOE
elements that have responsibility for laboratories with approved
LDRD programs. (Attachment 1 is a list of all DOE elements as of
the approval date of this Order. This Order automatically
applies to DOE elements created after it is issued.)
The National Nuclear Security Administration (NNSA)
Administrator will assure that NNSA employees and
contractors comply with their respective
responsibilities under this Order.
b. DOE Contractors. The Contractor Requirements Document
(CRD), Attachment 2, sets forth requirements that are to be
applied to contractors operating laboratories that conduct LDRD
programs approved by the appropriate cognizant Secretarial
Officer (CSO)/Deputy Administrator, NNSA.
c. Exclusions. None.
4. REQUIREMENTS.
a. LDRD projects must be in the forefront areas of science and
technology relevant to DOE/NNSA missions. Normally LDRD projects
will be relatively small and will also include one or more of the
following characteristics—
(1) advanced study of hypotheses, concepts, or innovative
approaches to scientific or technical problems;
(2) experiments and analyses directed towards “proof of
principle” or early determination of the utility of new
scientific ideas, technical concepts, or devices; and
(3) conception and preliminary technical analyses of
experimental facilities or devices.
b. Normally LDRD projects will be limited to a maximum period
of performance of 36 months. Exceptions may be granted by the
(CSO)/Deputy Administrator, NNSA, or his/her authorized designee.
c. The maximum funding level established for LDRD must not
exceed 8 percent of a laboratory’s total operating and capital
equipment budgets, including non-DOE funded work, for the year.
The system for accrual of these funds, to a reasonable extent,
must provide for equitable pro rata contributions by all sources
of operating and capital equipment funding.
d. LDRD expenditures are considered an allowable cost in
accordance with the terms and conditions of the laboratory
operating contract and must be identified in the laboratory
accounting system.
e. LDRD funds will not be used to—
(1) substitute for or increase funding for any tasks for which a
specific limitation has been established by Congress or the
Department or for any specific tasks that are funded by DOE/NNSA
or other users of the laboratory;
(2) fund projects that will require the addition of non-LDRD
funds to accomplish the technical goals of the LDRD project,
except as provided by legislation;
(3) fund construction design beyond the preliminary phase (e.g.,
conceptual design, Title I design work, or any similar or more
advanced design effort) or fund line-item construction projects,
in whole or in part; or
(4) fund general purpose capital expenditures with the exception
of acquisition of general purpose equipment that is clearly
required for the project and is not otherwise readily available
from laboratory inventory.
f. The LDRD program will—
(1) include all discretionary research and development
activities other than those provided for in a DOE/NNSA program or
by specific designation in a DOE contract and
(2) be consistent with all other applicable requirements for
similar research and development activities at the laboratory.
5. RESPONSIBILITIES.
a. Director, Office of Science. In cooperation with cognizant
Departmental elements—
(1) performs periodic reviews of this Order and its
implementation and recommends revisions, as required;
(2) establishes guidelines as required to implement the
requirements of this Order; and
(3) develops a set of LDRD program performance measures that are
consistent among DOE/NNSA laboratories.
b. Cognizant Secretarial Officers/Deputy Administrators, NNSA.
(1) Exercise general oversight of all activities related to LDRD
at the laboratories for which they have cognizance.
(2) Annually approve each laboratory’s LDRD plan and allowable
funding level and grant exceptions as required under paragraph
4b.
(3) Annually review each laboratory’s LDRD program with the
assistance of the responsible DOE/NNSA site office manager.
(4) Prepare reports to Congress as required.
c. Site Office Managers.
(1) Assist the CSO/Deputy Administrator, NNSA, in providing
oversight and review of the laboratory’s LDRD program.
(2) Provide a recommendation to the CSO/Deputy Administrator,
NNSA, on the laboratory’s proposed annual LDRD plan and funding
level.
(3) Formally authorize the annual LDRD program for the
laboratory based on CSO/Deputy Administrator, NNSA, written
approval.
(4) Annually review and concur on each laboratory LDRD project
before the project is started or continued.
(5) Annually review and certify in writing to the CSO/Deputy
Administrator, NNSA, whether the laboratory’s method for
accumulating LDRD funds is consistent with paragraphs 4c and 4d
of this Order.
(6) Notify the responsible contracting officer that the CRD must
be incorporated into the contract to manage and operate the
laboratory.
d. Contracting Officers. Once notified by site office
managers, incorporate the CRD into affected contracts as
directed.
6. REFERENCES.
a. The Atomic Energy Act of 1954, as amended, sections 3, 31,
and 33, 42 U.S.C. 2013, 2051, and 2053, which provides broad
authority for research and development activities and their
funding.
b. The Energy Reorganization Act of 1974, as amended, Public
Law (P.L.) 93-438, sections 2, 103, and 107, 42 U.S.C. 5801(b),
5813, and 5817(a), which creates the Energy Research and
Development Administration (ERDA) to bring together and direct
Federal activities relating to research and development on the
various sources of energy and to carry out general basic research
activities.
c. The Department of Energy Organization Act, as amended,
P.L. 95-91, sections 101 and 102, 42 U.S.C. 7111(4) and 7112(5),
which places the research and development activities formerly
performed by the Atomic Energy Commission and ERDA under the
Secretary of Energy, and directs the Department to carry out the
planning, support, and management of a comprehensive energy
research and development program.
d. An Act for Authorizations and Appropriations for the Energy
Research and Development Administration for FY 1977, P.L. 95-39,
which provides specific authority so that the director of a
Government-owned, contractor-operated laboratory may use a
reasonable amount of the laboratory’s operating budget to fund
employee-suggested projects up to the pilot stage of development,
with the approval of the Secretary.
e. The National Defense Authorization Act for Fiscal Year 1991,
P.L. 101-510, Section 3132, 50 U.S.C. 2791, which authorizes
Government-owned, contractor-operated laboratories that are
funded out of funds available to DOE for national security
programs (i.e., atomic energy defense activities) to carry out
LDRD, not to exceed 6 percent of such funds, for the purpose of
maintaining the vitality of the laboratory in defense-related
scientific disciplines.
f. The National Defense Authorization Act for Fiscal Year 1993,
P.L. 102-484, section 3135, which directs that funds authorized
to be appropriated to the Department of Energy for Atomic Energy
Defense Activities and made available for LDRD, shall be made
available for cooperative research and development agreements
or other arrangements for technology transfer.
g. The National Nuclear Security Administration Act, Title
XXXII of P.L. 106-65, as amended, which established a separately
organized agency within DOE.
h. Homeland Security Act of 2002, P.L. 107-296, 6 U.S.C.
189(6)f, which directs that funds authorized to be used for LDRD
must benefit the homeland security mission.
i. FY 2006 Energy and Water Development Appropriations Act,
P.L 109-103, Section 311, raises the maximum LDRD funding level
to 8 percent and makes all the DOE laboratories eligible for LDRD
funding.
7. CONTACT. Questions covering this Order should be addressed
to the Office of Laboratory Policy and Infrastructure, Office of
Science, 202-586-5447.
BY ORDER OF THE SECRETARY OF ENERGY:
CLAY SELL
Deputy Secretary
DEPARTMENTAL ELEMENTS TO WHICH DOE O 413.2B IS APPLICABLE
Office of the Secretary
Departmental Representative to the Defense Nuclear Facilities
Safety Board
Energy Information Administration
National Nuclear Security Administration
Office of Civilian Radioactive Waste Management
Office of Congressional and Intergovernmental Affairs
Office of Counterintelligence
Office of Economic Impact and Diversity
Office of Electricity Delivery and Energy Reliability
Office of Energy Efficiency and Renewable Energy
Office of Environment, Safety and Health
Office of Environmental Management
Office of Fossil Energy
Office of General Counsel
Office of Hearings and Appeals
Office of Human Capital Management
Office of Intelligence
Office of Legacy Management
Office of Management
Office of Nuclear Energy, Science and Technology
Office of Policy and International Affairs
Office of Public Affairs
Office of Science
Office of Security and Safety Performance Assurance
Office of the Chief Financial Officer
Office of the Chief Information Officer
Office of the Inspector General
Secretary of Energy Advisory Board
Bonneville Power Administration
Southeastern Power Administration
Southwestern Power Administration
Western Area Power Administration
CONTRACTOR REQUIREMENTS DOCUMENT
DOE O 413.2B, Laboratory Directed Research and Development
Regardless of the performer of the work, the contractor is
responsible for compliance with the requirements of this
Contractor Requirements Document (CRD). The contractor is
responsible for flowing down the requirements of this CRD to
subcontractors at any tier to the extent necessary to ensure the
contractor’s compliance with the requirements and the safe
performance of work.
As directed by the contracting officer, the contractor must do
the following.
1. Establish and maintain a management system to ensure that
the laboratory directed research and development (LDRD) program
meets the following requirements.
a. LDRD projects must be in the forefront areas of science and
technology relevant to Department of Energy (DOE)/National
Nuclear Security Administration (NNSA) missions. Normally LDRD
projects will be relatively small and will also include one or
more of the following characteristics—
(1) advanced study of hypotheses, concepts, or innovative
approaches to scientific or technical problems;
(2) experiments and analyses directed towards “proof of
principle” or early determination of the utility of new
scientific ideas, technical concepts, or devices; and
(3) conception and preliminary technical analyses of
experimental facilities or devices.
b. Normally LDRD projects will be limited to a maximum period
of performance of 36 months. Exceptions may be granted by the
cognizant Secretarial Officer (CSO)/Deputy Administrator, NNSA,
or his/her authorized designee.
c. The maximum funding level established for LDRD must not
exceed 8 percent of a laboratory’s total operating and capital
equipment budgets, including non-DOE funded work, for the year.
The system for accrual of these funds , to a reasonable extent,
must provide for equitable pro rata contributions by all sources
of operating and capital equipment funding.
d. LDRD expenditures are considered an allowable cost in
accordance with the terms and conditions of the laboratory
operating contract and must be identified in the laboratory
accounting system.
e. LDRD funds will not be used to—
(1) substitute for or increase funding for any tasks for which a
specific limitation has been established by Congress or the
Department or for any specific tasks that are funded by DOE/NNSA
or other users of the laboratory;
(2) fund projects that will require the addition of non-LDRD
funds to accomplish the technical goals of the LDRD project,
except as provided by legislation;
(3) fund construction design beyond the preliminary phase (e.g.,
conceptual design, Title I design work, or any similar or more
advanced design effort) or fund line-item construction projects,
in whole or in part; or
(4) fund general purpose capital expenditures with the exception
of acquisition of general purpose equipment that is clearly
required for the project and is not otherwise readily available
from the laboratory inventory.
f. The LDRD program will—
(1) include all discretionary research and development
activities other than those provided for in a DOE/NNSA program or
by specific designation in a DOE contract and
(2) be consistent with all other applicable requirements for
similar research and development activities at the laboratory.
2. Establish criteria that emphasize innovative scientific and
technological excellence for selection of projects using internal
peer and/or technical management review. A significant number of
the projects selected should be those independently proposed by
individual researchers or small multidisciplinary teams.
3. Submit an annual LDRD program plan for approval to the
CSO/Deputy Administrator, NNSA, and the responsible DOE/NNSA site
office manager at least 45 days before the start of the fiscal
year. The plan must provide a requested funding level, general
description, and justification of the LDRD program; the plan must
also explain how this program will meet laboratory needs, support
the laboratory’s mission, and benefit DOE/NNSA and the nation.
4. Submit an annual written report on the laboratory’s LDRD
activities to the CSO/Deputy Administrator, NNSA, and the
responsible DOE/NNSA site office manager within 6 months after
the end of the fiscal year. The annual report must include an
overview of the program as well as a short summary of each funded
project. Additionally, each laboratory must provide a report on
completed projects to the Office of Scientific and Technical
Information.
5. Report annually on the standard LDRD program performance
measures, and collect and provide other data on the LDRD program
as negotiated with the CSO/Deputy Administrator, NNSA.
6. Lead or participate in LDRD program reviews of the business
and technical aspects of the program.
7. Submit to the CSO/NNSA Deputy Administrator or his/her
designee requests for exceptions to the LDRD maximum 36-month
performance period.
8. Evaluate the quality of science and technology of the LDRD
program.
9. Annually submit a project data sheet to the responsible
DOE/NNSA site office manager for each LDRD project.