Display Related Directives to this directive.

DOE G 481.1-1
Department of Energy
Work for Others

"Putting It All Together"
September 1997

DOE G 481.1-1 i(and ii)
9-24-97

FOREWORD

The Work for Others (WFO) Guide was prepared by the Office of Human Resources and
Administration. Technical and administrative support was provided by the Offices of Defense
Programs, Energy Research, Nonproliferation and National Security, and by various Operations/
Field Offices.

The WFO Guide has been designed to assist Operations/Field Offices in developing their local
WFO processes; however, it does not prescribe any requirements not found in current Department
of Energy (DOE) Orders and Manuals. If a conflict arises between this Guide and any DOE
Order or Manual, the Order or Manual will take precedence. Since it is limited to providing
general guidance which may or may not be utilized by the implementing offices, the Guide should
not be used as an inspection or auditing tool to assess local processes.

In an effort to consolidate guidance on what should be in a WFO approval package so the roles
and responsibilities of all parties to executed agreements are clearly specified, the "Guidelines for
Development, Review, and Acceptance of Agreements for Reimbursable Work or Services by
DOE Officials" is included as Attachment 1.

The following individuals were directly and substantively involved in the development of this
product. Additional questions regarding the WFO Program should be directed to the appropriate
point of contact listed below:

Office of Human Resources and Administration, A. Scott Geary: 202-586-3299

Office of Energy Research, John LaBarge: 202-586-9747

Office of Defense Programs, Andrew Mullunzi: 301-903-8064

Office of Chief Financial Officer, Helen Sherman: 202-586-4860

Office of Nonproliferation and National Security, Michael Mazaleski: 202-586-8718 CONTENTS

Page

FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . ii

1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . .I-1

2. APPLICATION. . . . . . . . . . . . . . . . . . . . . . . II-1

3. WFO PROCESS DESCRIPTION. . . . . . . . . . . . . . . . .III-1
3.1 Federally Sponsored WFO. . . . . . . . . . . . . .III-1
3.2 Non-Federally Sponsored WFO. . . . . . . . . . . .III-7

4. FILE DOCUMENTATION . . . . . . . . . . . . . . . . . . . IV-1

5. PERFORMANCE OBJECTIVES/MEASURES. . . . . . . . . . . . . .V-1
5.1 Program Performance Objectives and Measures. . . . .V-1
5.2 Process Evaluation . . . . . . . . . . . . . . . . .V-3
5.3 Customer Satisfaction Evaluation . . . . . . . . . .V-4

6. ADDITIONAL INFORMATION . . . . . . . . . . . . . . . . . VI-1

7. REFERENCES . . . . . . . . . . . . . . . . . . . . . . .VII-1

ATTACHMENTS

1. Guidelines for Development, Review, and Acceptance
of Agreements for Reimbursable Work or Services by DOE Officials1-1

2. Administrative Update to the Class Waiver W(A)-82-017,
"Use of DOE Facilities and Contractors by or for Third Party Sponsors"2-1

3. Work for Non-Federal Sponsors Process Checklist . . . . .3-1 1. INTRODUCTION

The Department of Energy (DOE) has major national programs in fundamental scientific research;
energy research and development (R&D); and nuclear weapons research, development, and
production. Much of the work in these programs is conducted through an extensive network of
Government-owned, contractor-operated laboratories and facilities under performance-based
contracts. Through the Work for Others (WFO) Program, DOE can make the highly specialized
or unique expertise and capabilities of this network available to support the missions of other
Federal agencies and non-Federal customer needs on a fully reimbursable basis. These facilities
are managed and operated for DOE by universities, industrial concerns, and non-profit
organizations under terms of individual contracts, as defined in Federal Acquisition Regulation
(FAR) Subpart 17.6.

DOE O 481.1, WORK FOR OTHERS, (NON-DEPARTMENT OF ENERGY FUNDED
WORK), defines WFO as, "the performance of work for non-DOE entities by DOE/contractor
personnel and/or utilization of DOE facilities that is not directly funded by DOE appropriations."

The Economy Act of 1932, as amended 31 United States Code U.S.C. 1535, authorizes an
agency to place orders for goods and services, subject to availability, with another government
agency when the head of the ordering agency determines that it is in the best interest of the
government. Similarly, the Atomic Energy Act of 1954, 42 U.S.C. 2001 et seq., Sections 31, 32,
and 33, authorizes the conduct of research and development and certain training activities for
non-DOE entities, provided that private facilities or laboratories are inadequate for that purpose.

By performing WFO, DOE benefits by increasing its opportunities to transfer technology that
originates in DOE facilities to private industry for further development or commercialization.
Other benefits DOE receives from WFO include (1) the financial support of mutual-interest
scientific and technical programs and (2) improved and more continuous use of its facilities and
contractor personnel, both of which help support DOE's fixed and variable costs.

This Guide frequently references DOE requirements and procedural information (Orders and
Notices) and applicable Federal laws and regulations (Federal Acquisition Regulations and
Atomic Energy Act, etc.). This is not a Policy document nor does it prescribe requirements for
the WFO Program. 2. APPLICATION

DOE WFO requirements and practices have been established to ensure compliance with Federal
laws and regulations and are delineated in DOE O 481.1 WORK FOR OTHERS (NON-
DEPARTMENT OF ENERGY FUNDED WORK) and DOE M 481.1, REIMBURSABLE
WORK FOR NON-FEDERAL SPONSORS PROCESS MANUAL. This document suggests
methods and standards for achieving an effective, user-friendly system and is not to be considered
a requirements document. The procedures presented in this Guide are not designed to standardize
the WFO process nor be included in any contracts. Alternative methods may be developed at the
local level to satisfy program requirements; however, the information contained here may provide
streamlining and quality alternatives to existing systems.
3. WFO PROCESS DESCRIPTION

3.1 Federally Sponsored WFO

A classical WFO process for reviewing, approving/accepting, and authorizing work for other
Federal agencies is described below. This description segments the process into the following six
stages, which are depicted in Exhibit 1 (Page III-7).

Stage 1: Proposal development by the facility contractor
Stage 2: DOE review and approval of the proposal
Stage 3: Sponsor review of the proposal
Stage 4: DOE acceptance of the interagency agreement
Stage 5: Performance of the work by the facility contractor
Stage 6: Project closeout

The information presented (1) depicts the classical WFO process and identifies key decision
points; (2) defines what information should be available for each stage of the process; and (3)
suggests possible methods for improving the efficiency of local processes.

To accurately describe all of the WFO process stages it is important to note that, prior to "Stage
1, Proposal Development," the contractor and sponsor have "Preliminary Proposal Development"
discussions. These discussions primarily focus on the needs of the potential sponsor and technical
capabilities of the contractor. The intended purpose is to determine if by reaching some
agreement the contractor can provide the needed expertise and facilities to meet the sponsors
needs. If it is agreed that entering into an agreement would be possible and beneficial the process
moves into "Stage 1, Proposal Development Stage." Since the preliminary stage is an informal
meeting of the parties without a specific measurable outcome and is accomplished in any number
of ways it is determined unnecessary to measures these interactions.

Specific information will be obtained from the funding entity (sponsors) and contractors at various
decision points throughout the process. The flowchart and narrative information suggest a sample
methodology that will ensure appropriate information is received in a timely manner and made
available to support process decisions.

3.1.1 Stage 1 Proposal Development

Stage 1 usually begins with formal discussions regarding proposal development among the
sponsoring Federal agency, the contractor, and if appropriate, DOE. As a result of these
discussions, a proposal package for DOE review and approval is prepared. It should be noted
that the facility contractor is required to submit any Scientific and Technical Information (STI)
generated as a result of the project to DOE in accordance with DOE O 1430.1D, SCIENTIFIC
AND TECHNICAL INFORMATION MANAGEMENT, of 6-30-94 unless there is an exception
noted in the agreement with the Sponsor. The contractor should ensure that, at a minimum, the
following information is contained in the proposal package submitted to DOE.

Technical description of the work (including schedules, milestones, and deliverables) and
proposed reporting requirements

Appropriate file documentation:

- Total estimated costs, including cost detail if requested by the Sponsor and/or Operations
Office

The following information may be included as part of the initial proposal or provided
subsequent to the proposal submission as part of what is defined as the overall proposal
package. However, this information should be included as part of the review and approval
process consistent with DOE O 481.1.

involvement of other DOE facilities

subcontracting

construction or facility modification exceeding the General Plant Projects threshold

acquisition of data processing equipment

domestic/foreign travel and foreign involvement

space nuclear and noncommercial power reactor work with approved Office of Space and
Defense Power Systems (NE-50) management role

nuclear nonproliferation detection technology work

intelligence-related activities

human and/or animal research subjects

classified activities, if so:

guidance (before beginning any classified work)
Facility Data and Approval Record (FDAR) approval (before beginning any classified
work)
any other special measures

Explanation of adherence to criteria of DOE O 481.1.

Name of sponsoring agency

Points of contact at sponsor and contractor and, as appropriate, the Program Office

Recommendation of property and equipment disposition upon work completion

If proposal is in response to Broad Agency Announcement

Identification of any formal agreements between DOE and sponsor under which the work will
be performed

Identification of any National Environmental Policy Act (NEPA) determinations required

Identification that all Environment, Safety and Health (ES&H) and Quality Assurance
Program requirements have been considered (as appropriate)

Identification of any special financial considerations (e.g., Waiver of Departmental Added
Factor)

Other security requirements requested by Sponsor if Sponsor/customer requirements make
modifications to the security measures/processes that would affect (either upgrade or
downgrade) the protection of DOE assets

Reporting requirements including records/report distribution.

3.1.2 Stage 2: DOE Proposal Review and Approval

Stage 2 begins when DOE receives the contractor's proposal or entire proposal package. The
contractor may also send a copy of the proposal to the sponsoring agency at this time to allow for
parallel review by the sponsor and DOE; however, the contractor must clearly indicate that DOE
approval is required prior to the proposed work being approved. DOE evaluates the package to
ensure the contractor statements are accurate and complete. DOE also reviews the package to
determine that the estimated total cost of the work proposed is priced in accordance with DOE
pricing policies and consistent with the legislative authority of the Department, including as
necessary, Departmental Added Factor costs. For those proposals that require DOE
Headquarters notification or involvement, the necessary documentation should be sent to the
appropriate Headquarters office as early in this stage as possible to ensure parallel review of the
proposal. After all requirements have been satisfied, DOE sends the proposal or letter of approval
to the sponsor. In all cases, funding may not be accepted prior to obtaining appropriate
Departmental concurrences or approvals (see Stage 4).
3.1.3 Stage 3: Sponsor Review of Proposal

Stage 3 begins when DOE or the contractor sends the proposal or approval letter to the
sponsoring Federal agency. The sponsor reviews the proposal and works with the contractor and
DOE to answer any questions and resolve any issues related to the proposed work. Once the
sponsor agrees with the proposal, the sponsor may send a signed interagency agreement (funding)
to DOE for acceptance, or elect to provide it after DOE has approved the proposal.

3.1.4 Stage 4: Acceptance of Interagency Agreement

Stage 4 begins when DOE receives a signed interagency agreement from the sponsoring Federal
agency. The interagency agreement from the sponsor should include the following as required by
DOE O 481.1 or any other information deemed necessary by the Operations/Field Office:

Signature of an individual within the sponsoring agency authorized to approve interagency
agreements. Neither DOE nor its facility contractor need to verify that the person who signed
is indeed authorized by the sponsoring agency.

Billing data, such as the names and mailing addresses of the performing and requesting
parties' accounting offices.

Provision for reimbursement to DOE for termination and closeout costs including, if
appropriate, removal/disposition of any project-related equipment and waste.

A citation referencing the sponsoring agency's appropriation being used to fund the work.

Description of statutory or other limits on use of funds (e.g., expiration of funds).

Full funding for work to be completed within the current fiscal year or current fiscal year
funding plus first 3 months of following fiscal year, if work transcends fiscal years or request
for waiver of full funding requirement with adequate justification, if applicable.

Guidance on the following, if different than what was identified in the contractor's proposal:

reporting requirements, including records/reports distribution
disposition of property and equipment at completion of work
security classification requirements

other written assurances required by DOE O 481.1 and applicable laws and regulations.

If the interagency agreement and other documentation provide all of the required information,
defined as the proposal package, DOE can accept the interagency agreement after:

DOE certifies the availability of funds (reimbursement authority).

All required DOE Headquarters concurrences or approvals are obtained.

The responsible DOE Contracting Officer has certified in writing that the determinations
required in DOE O 481.1 have been made.

DOE notifies the contractor of the acceptance of the interagency agreement and authorizes the
contractor to begin work.

3.1.5 Stage 5: Performance of Work

Stage 5 begins when DOE authorizes the contractor to start work. The contractor is responsible
for performing the work described in the interagency agreement. The contractor is also
responsible for ensuring milestones and deliverables are met, reporting progress to the sponsor,
and assuring compliance with all DOE environmental, safety and health (ES&H), financial and
other control requirements. The sponsoring agency is responsible for payment of monthly invoice
costs and assessing progress on the technical scope of work, including schedule and cost
performance. DOE involvement in this stage is to: provide general management oversight of the
WFO activities at its facilities; ensure compliance with DOE policies and procedures; transmit
monthly invoices (whether physical or electronic) to the sponsor; and resolve issues between the
sponsoring agency and the contractor. DOE may elect to monitor certain projects more closely
due to the nature of the projects. At the completion of the project, the contractor provides the
sponsoring agency with the final deliverables as agreed. When the final costs, excluding audit and
related adjustments, are known, DOE or its contractor bills the sponsor for the final costs. The
sponsor should be informed if the project involves subcontract costs that will be audited and
might result in later adjustments to those costs.

3.1.6 Stage 6: Project Closeout

Stage 6 begins when the contractor or sponsoring agency notifies DOE that the final deliverables
have been completed and accepted. If the sponsor fails to request closeout, the contractor should
begin these procedures as soon as practical. Additional costs shall not be incurred by the
contractor for additional work. Only costs incurred to close out the project are allowable. The
following information is required to complete the project closeout:

- identification by the contractor of any remaining funds (with the exception of any audit
incurred adjustments).

Once the above information is collected, DOE provides the sponsor a deobligation of any
remaining funds. The project will be officially closed out only after the sponsoring agency accepts
the final deobligation. No DOE funding should be used to perform closeout activities.3.2 Non-Federally Sponsored WFO

The process described below applies to all WFO projects performed for non-Federal sponsors.
This process implemented under DOE O 481.1, WORK FOR OTHERS (NON-DEPARTMENT
OF ENERGY FUNDED WORK), presents the process in seven key stages which are depicted in
Exhibit 2 (Page III-13).

It is important to note that DOE M 481.1-1 provides for DOE Operations/Field Offices to
delegate to the DOE contractor many of the responsibilities for project review and approval.
While many of the decision responsibilities can be delegated, each Operations/Field Office will
negotiate with local contractors to determine which responsibilities to delegate. This section will
discuss some of the potential delegations of authority; however, with all of the possible degrees of
delegation, it is impossible to detail all potential permutations of this process. Specific authority
and details as to what may be delegated are contained in DOE M 481.1-1. It should be noted that
DOE M 481.1-1 requires the contractor to submit a Management and Administrative Plan for
DOE approval prior to any delegations being provided. The plan must contain specific types of
information that are detailed in Attachment 4 of DOE M 481.1-1.

Preliminary proposal discussions are the first step in the process to develop a formal WFO
proposal. These interactions are generally held between the DOE contractor and the potential
project sponsor. During this time conceptual ideas are discussed to determine, in general, the
types of activities to be performed and are not required to be measured for assessing time required
for project review and approval. Process timelines and measures are expected to begin with Stage
1, Proposal Development, since this is the starting point for formal development of the proposal
package. The stages of the process are:

Stage 1: Proposal development and programmatic review of Proposal Package and cost
estimate by the facility contractor and sponsor
Stage 2: Contractor internal review and approval of Proposal Package including cost
estimate
Stage 3: Parallel sponsor review of Proposal Package, cost estimate and agreement
provisions
Stage 4: Execution of agreement by contractor and sponsor
Stage 5: Transmittal of funds from the sponsor
Stage 6: Performance of work
Stage 7: Agreement closeout

3.2.1 Stage 1: Proposal Development

The formal proposal development process begins the date when the non-Federal sponsor and
DOE contractor personnel begin preparing the Proposal Package describing the work to be
funded by the sponsor. The Proposal Package should include, at a minimum, the following
information as appropriate:

description of work requested including deliverables
schedule and milestones
total cost estimate, including cost detail as requested by the sponsor or Operations/Field
Office

Additional file documentation should include:

Explanation of adherence to criteria of DOE O 481.1.
Name of sponsoring organization
Name and address of sponsoring entity, including source of funds
Points of contact at sponsor and contractor and, as appropriate, Headquarters Program
Offices
Recommendation of property and equipment disposition upon work completion
Identification of any NEPA determinations required
Identification that appropriate ES&H and quality assurance program requirements are
addressed
Identification of any special financial considerations (e.g., Departmental Added Factor,
Depreciation Charges)
Request for waiver of DOE added factor and depreciation charges with adequate justification,
if applicable
Reporting requirements including records/report distribution
Intellectual property administration
Involvement of the following in the project:
- other DOE facilities
- subcontracting
- construction or facility modification exceeding the General Plant Projects threshold
- capital equipment acquisition
- acquisition of data processing equipment
- domestic/foreign travel and foreign involvement
- space nuclear and noncommercial power reactor work with approved NE-50 management
role
- nuclear non-proliferation detection technology work
- intelligence-related activities
- human or animal research subjects
- classified activities, if so:
- guidance
- FDAR approval (before beginning any classified work)
- any other special security requirements that make modifications to the security
measures/processes that would affect (either upgrade or downgrade) the protection of
DOE assets

3.2.2 Stage 2: Contractor Internal Review and Approval of Proposal Package, including
the Statement of Work (SOW), Cost Estimate

Stage 2 begins when appropriate contractor personnel responsible for approving, executing and
administering WFO projects initiate a review of the proposal package, including the SOW and
cost estimate, for compliance with WFO requirements and identification of any programmatic or
administrative issues. For those proposals that require DOE Headquarters or Operations/Field
Office notification or approval, the necessary documentation should be sent to the appropriate
office as early in this stage as possible to ensure parallel review of the proposal (See Attachment
3, Process Checklist). The contractor obtains internal management approval of the proposal, and
prepares a tailored agreement that incorporates the SOW and cost estimate. The contractor must
have been fully delegated non-Federal review and approval authority by the Head of the Field
Office/Operations Office and use the articles in the DOE standard WFO Agreement prior to
approving the Agreement. Any proposed deviation from the DOE-approved terms and conditions
in this agreement must be submitted to DOE for approval. The contractor's internal review
should include full documentation of the decision process for each item on the Process Checklist.
If any item specified on the Process Checklist requires DOE approval, the contractor will send the
Proposal Package to the DOE element(s) shown on the Process Checklist for approval in parallel
with the contractor's internal review and negotiation of the agreement.

If the contractor delegation has not been provided, the contractor must submit the proposal to
DOE for appropriate approval. If any of the four exclusion areas in the Patent Class Waiver
apply, contractor justification for not exercising the class waiver must be provided to the
Operations/Field Office for notification or approval as required. These requirements are
specifically delineated in DOE M 481.1-1. DOE 1430.1D requires that the agreement address
submission of scientific and technical information generated as a result of the project.

3.2.3 Stage 3: Sponsor Proposal Package Review and Approval and DOE, as Appropriate

This stage begins when the contractor (or DOE, if appropriate) provides an advance copy of the
final draft tailored agreement to the sponsor to review the terms and conditions of the work being
requested. Advance communication of the terms and conditions of the agreement should reduce
the time needed for negotiation of the agreement, thereby reducing the time required for approval.
The proposed agreement will include a statement that the agreement does not constitute a
commitment from either party. During this time, the sponsor reviews the final draft agreement
concurrent with the DOE contractor and DOE (as appropriate) management offices, to negotiate
any revisions to the terms and conditions of the agreement. Once revisions to the terms and
conditions are completed and internal approvals are obtained, the final agreement is prepared and
approved.3.2.4 Stage 4: Execution of Agreement by DOE (or DOE Contractor, if Delegation of
Authority has been granted) and Sponsor

Stage 4 begins when the contractor sends an executed copy of the final agreement to the sponsor.
If the DOE Operations/Field Office has fully delegated review and approval authority to the
contractor, both the contractor and sponsor may sign the agreement. In the absence of delegation
of approval authority, the contractor must submit the proposal package to DOE for review and
approval. The contractor must secure all other necessary DOE approvals per DOE O 481.1 and
DOE M 481.1-1 prior to executing the final agreement. Several actions are required to take place
before the agreement is executed as stipulated in DOE O 481.1 and DOE M 481.1-1.

That the disposition of intellectual property is consistent with the Class Waiver W[A]-82-017
[as updated by IPI II-2-82 (Amendment 2) of 9-24-96]; the rights will be waived to the
sponsor, except in the four instances noted in the revised class patent waiver, as set forth in
Attachment 2.

It is incumbent on the contractor to establish and document whether any of the four
exceptions apply to the work being requested by the sponsor.

The contractor determines whether any additional DOE approvals are required prior to
execution of the agreement.

Any nonstandard clauses will be sent to the Operations/Field Office for approval.

It should be noted that the contractor can not represent itself as speaking on behalf of DOE in
negotiating any changes to the pre-approved clauses of the agreement.

Once the agreement has been signed by both parties, the contractor may send the Operations/Field
Office a copy of the executed agreement.

3.2.5 Stage 5: Transmittal of Funds from the Sponsor

This stage begins when the contractor receives the sponsor's executed copy of the agreement and
advanced funding, whichever comes last. Once the final agreement has been signed (executed),
the sponsor provides advanced funding to the contractor or DOE, if delegation has not been
provided, in accordance with established DOE policy on advance funding (reference DOE
Accounting Handbook, Chapter 13, "Reimbursable Work, Revenues, and Other Collections") and
as stated in the agreement. Certification of the availability of funding and work authorization will
be approved by the Operations/Field Office. The Operations/Field Office certifies the availability
of obligational authority, and either the Operations/Field Office or the contractor sets up the
reimbursable account.3.2.6 Stage 6: Performance of Work

During the performance of work the following delineates DOE, DOE contractor, and sponsor
responsibilities.

DOE:

1. Resolves problems between the sponsor and the DOE contractor, if problems can not be
resolved between DOE contractor and sponsor.

2. Monitors contractor's WFO projects, to ensure compliance with DOE requirements and
approved project scope, schedule and cost.

DOE Contractor:

1. Performs WFO projects authorized by DOE.

2. Ensures milestones/deliverables are met and provides progress reports if required by the
sponsor approved proposal package.

3. Complies with all DOE ES&H, financial and other control requirements.

Sponsor:

1. Monitors work for compliance with project scope, technical requirements, schedule and cost
performance.

2. Informs DOE of any problems that cannot be resolved with the DOE facility contractor.

3. Pays bills in a timely manner in accordance with the authority under which the work was
accepted and consistent with DOE financial policy requirements

3.2.7 Stage 7: Agreement Closeout

Stage 7 begins when the contractor notifies the Operations/Field Office that the final deliverables
have been completed and accepted by the sponsor. The following information is required to
complete the project closeout:

- identification by the contractor of any remaining funds or any outstanding costs per the
original agreement requiring additional funds (with the exception of any audit incurred
adjustments). Note: No DOE funds should be used to support closeout project costs.

Once this information is collected, the Operations/Field Office returns to the Sponsor any
remaining funds or requests additional funding necessary to closeout the project. The project will
be officially closed out only after the sponsor accepts the return of the uncosted balance. No
DOE funds will be used to support close-out proceedings. The contractor will also send a final
closeout report to DOE. 4. FILE DOCUMENTATION

The WFO process requires specific project related information to be used as the basis for
satisfying the WFO process determinations and DOE Contracting Officer Certification or
contractor as required by DOE O 481.1. This information is necessary to ensure DOE complies
with all applicable laws and regulations. The project information should be held in a "centralized
WFO Project File." Therefore, to help ensure offices performing WFO maintain a baseline of
adequate information which includes justification and basis for decision making, a "Model File
Content List" has been developed. While the file content list is not intended to mandate project
file documentation it is suggested that individual sites performing WFO consider each element
carefully and require specific information to be maintained. The following represents the
suggested file documentation requirements.

WFO (Federal and Non-Federal)
Model Project File Content Checklist

DOE Operations/Field Office/Contractor

Project Number:

1. Sponsor/contractor's proposal (and sponsor statement of work, if applicable)

2. Contractor's subcontracting justification (as determined by the field office)

3. Non-competition statement, as required in paragraph 4b (excluding NRC)

4. DOE Determinations and Contracting Officer's Certification as required in DOE O 481.1,
4.a.(1)-(4).

5. DOE endorsement/approval-of-proposal letter and administrative instructions/terms and
conditions or proposal (as appropriate)

6. DOE ES&H/NEPA determinations and approvals (as required)

7. DOE 5650.2B, Chapter V, classification guidance certification (as required)

8. Evidence of DOE F 5600.2, Facility Data and Approval Record (FDAR) form approval (as
required)

9. DOE/Headquarters (HQ) approvals (as required)

10. DOE/HQ approvals for work directly funded by foreign sponsor (as required)

11. DOE/HQ use of human subjects approvals (as required)

12. DOE/HQ space nuclear or non-commercial power reactor or radioisotope power-related
approval(s) (as required)

13. Patent and data rights information (as required)
a. Documentation justifying the selection of patent and data rights articles

14. Sponsor's waiver request (e.g., Added Factor/Full Funding) (as required)
a. Federal sponsor waiver request justification
b. DOE approval/disapproval of waiver request

15. Sponsor funding
a. full cost recovery
b. full funding
c. State/local government's advance payments
d. State/local government's certification precluding cash advances
e. (approvals/disapprovals)

16. Funding
a. Funding acceptance documents (interagency agreement, military interdepartmental
purchase request)
b. Non-Federal sponsored work includes: spending plans and certification of funds

17. Project closeout documents
a. Funding/billing
b. Other

18. Equipment disposition documentation (as appropriate)

19. Certification of funds (as appropriate)

20. Use of human or animal research subjects approval by DOE or Contractor

21. DOE/HQ notification of nuclear non-proliferation detection technology involvement

22. Aviation operations approvals

23. DOE Security Authority Determinations and Approval (as appropriate) 5. PERFORMANCE OBJECTIVES/MEASURES

DOE has placed a strong emphasis on the use of performance objectives/measures to focus
processes and activities toward meeting specific performance goals. WFO requirements are the
means by which DOE ensures that all applicable laws, regulations, and statutes are adequately
addressed and satisfied. Measures are defined as examinations, tests, or other techniques that can
be used to verify that an item or process has achieved a specified customer need.

The objectives/measures described in this section could be used to provide sufficient information
to meet the performance measure responsibilities of DOE O 481.1 (see Section 5.n.(12), Heads of
Field Elements). Alternative methods/measures can be used; however, a baseline of information
relating to process timing and customer satisfaction should be the end product.

Once this information is being routinely collected by organizations performing WFO, changes to
policy, procedures and reporting requirements can be assessed to determine how they impact the
process and affect financial and human resources.

Measurements used by offices performing WFO are critical to establish baseline data, identify
areas for quality improvements and ensure continued monitoring of the process. Improvements
should be fundamentally grounded in measuring process variables both during the initial data
study and subsequent revisits to these process variables.

Successful baseline data based on a complete, realistic understanding of the process being studied
provides the best information needed for an accurate understanding of the current process. Useful
process measures can include, for example, the amount of time required to process a proposal,
level of customer satisfaction with the end product, the number of times a proposal is rewritten or
the number of WFO project rejections.

The following discusses several ways in which the WFO Program audit processes can be
measured: Program Performance Objectives and Measures, Process Evaluation and Customer
Satisfaction Evaluation.

5.1 Program Performance Objectives and Measures

Performance measures are being developed at all levels of organizations for use in identifying
areas for improvements as well as highlighting high-quality achievements. WFO performance
measures are currently being established at two or three levels within the Department. The first
level represents measures for attaining objectives set at the DOE Headquarters level. These
objectives are based on programmatic objectives stated in DOE O 481.1.
5.1.1 Performance Objective 1

DOE's highly specialized or unique facilities and resources are made available to non-DOE entities
to accomplish their goals, when work will not interfere with DOE Programs, or create a future
burden on DOE resources, or compete directly with the domestic private sector. [Refers to
paragraphs 1a and 1b of DOE O 481.1.]

Measure: The amount of WFO funding as a percent of total DOE funding.

Expectation: WFO funding is not disproportionate to DOE funding and WFO funding estimates
are accurately reflected, where appropriate, in Facility Institutional Plans.
(Unusually high or low percentages, or amounts which do not correspond to
Institutional Plan or other estimates may require justification.)

Measure: Quality and timeliness of project deliverables as measured by customer surveys.

Expectation: If baseline measures show high satisfaction, DOE will continue to provide the
same high-quality service. If baseline measures demonstrate a need for
improvement, DOE will target satisfaction levels of 80 percent satisfied or very
satisfied with quality and timeliness.

5.1.2 Performance Objective 2

Technology is transferred to industry for further development or commercialization. [Refers to
paragraph 1c of DOE O 481.1.]

Measure: Number of projects with deliverables which are further developed or commercialized
by customers as measured by surveys.

Expectation: Customer surveys (at close of project and 1 year later) identify new products for
commercial use of follow-on technologies.

5.1.3 Performance Objective 3

Core competencies are maintained. [Refers to paragraph 1d of DOE O 481.1.]

Measure: The number of WFO agreements by core competency.

Expectation: WFO projects generally are consistent with established facility core competencies.
(Unusually high deviations from core competencies may require justification.)5.1.4 Performance Objective 4

Work is reviewed and approved in accordance with laws, regulations, and DOE policy. [Refers
to DOE O 481.1, Section 4, Requirements.]

Measure: Percent of WFO proposals certified by reviewers as complying with requirements
of DOE O 481.1, WORK FOR OTHERS (NON-DEPARTMENT OF ENERGY
FUNDED WORK). The numerator is number of projects certified as complying
with requirements. The denominator is total number of projects per year.

Expectation: This percentage equals 100 percent.

5.1.5 Performance Objective 5

Managing WFO is cost effective. (NOTE: Conclusions based on direct comparison of
performance data from one field office or contractor site to another should be avoided. There is a
wide variation among offices in the type of work being performed for non-DOE entities and the
environment in which the work is performed.) [Refers to DOE O 481.1, Section 5.n.(12), Heads
of Field Elements.]

Measure: The Operations/Field Office demonstrates an effective system for managing
administrative cost associated with the review and approval of projects and acceptance
of funding for work for non-DOE sponsors.

Expectation: The administrative cost of managing and processing work for others will be
measured and tracked and trended against the number of projects and dollar value
of projects approved by DOE.

5.2 Process Evaluation

Total Quality Management requires full understanding of the process being improved. Effective
flowcharting should capture all important aspects of a process without being hindered by
relatively minor process variations. This section provides guidance for applying performance
measures to the time required for completing the WFO process stages, which include the
following.

proposal development project acceptance
DOE or contractor review contractor performance
sponsor review project closeout

These measures will provide performing organizations with information necessary to accurately
determine the time required to process proposals and gauge customer satisfaction. This
information should assist in developing and implementing quality improvements.

Suggested measures which can be used for assessing WFO processes and customer satisfaction
are detailed in Exhibit 3. Generic flowcharts of the Federal and non-Federal WFO processes have
been provided in Exhibit 1 (page III- 7) and Exhibit 2 (page III-13). Flowcharts depicting local
(Operations/Field Offices and facility contractor) procedures are expected to differ from one
another. Therefore, it is important that the information collected relate to uniform parameters.
The flowcharts can be used to identify measurable start and stop points within each local WFO
process. The information collected can be compiled with other offices and used to assess the
overall WFO process. With increases in Delegations of Authority to DOE contractors, the
number of measures and processing steps will differ significantly from site to site.

Specifically, the five performance measures discussed (time required for WFO project approval
[field and contractor], Headquarters involvement in the WFO approval process, time for
Headquarters approval, and customer satisfaction surveys) can provide baseline data that can be
measured again in the future to gauge improvements or problems in the WFO process.

5.3 Customer Satisfaction Evaluation

The survey form below is an example of one method used for gathering customer feedback. It is
not our intention to duplicate or create additional customer surveys, but merely to provide a
useful model to be used in whole or part at the discretion of Operations/Field Offices. Offices are
encouraged to coordinate with other DOE offices so that one survey can serve a multiple of DOE
needs. Exhibit 3. Summary of WFO Performance Measurement Criteria.

Measure
Relates to Customer
Requirements of:
Performance
Measurement
Criterion
Process to Achieve
Improvements

Time required for
project proposal
development and
approval by facility
contractor(s) in
preparation for
submission to DOE for
approval.
Improved timeliness.
Primary customer is
the sponsor.
Measure calendar days
required for Stage 1
(proposal development)
of the WFO process
again in 1 year.
1. Implement TQM
streamlining process
improvements at contractor
offices.

2. Train and educate facility
contractor scientific and
administrative staff.

Time required for WFO
project approval by
Operations/Field
Offices and, as
appropriate,
Headquarters
organizations. For
non-Federal work,
"project approval"
equates to awarding of
contract.
Improved timeliness.
Primary customer is
the sponsor.

Measure calendar days
required for Stages 2 to
4 (project approval
process) of the WFO
process again in 1 year.

1. Implement TQM
streamlining process
improvements at
Headquarters and
Operations/Field Offices.

2. Train and educate
Operations/Field Offices
and Headquarters staff.

Headquarters
involvement in WFO
approval process.
Minimized
Headquarters
involvement. Primary
customer is
Operations/Field
Offices. Ultimate
customer is the
sponsor.
Measure number of
Headquarters reviews
and approvals.
Review Headquarters approval
requirements for further
delegation to Operations/Field
Offices.

Time required for
Headquarters approval.
Improved timeliness.
Primary customer is
Operations/Field
Offices. Ultimate
customer is the
sponsor.
Measure the number of
calendar days required
for Headquarters
approval.
1. Implement TQM process
streamlining
improvements at DOE
Headquarters.

2. Train and educate
Headquarters approval
staff.

Customer (sponsor)
satisfaction with the
WFO process and
personnel.
Quality Service and
overall customer
satisfaction with WFO
personnel and process.
Measure sponsor
responses to
questionnaires.
Implement valid changes
through TQM process
improvement methods.

U.S. DEPARTMENT OF ENERGY
WFO CUSTOMER SURVEY FORM

WFO Project Information: (to be completed by DOE)
Proposal (Agreement) Number:
Proposal Title:
Sponsor:
Sponsor Point of Contact: (name, address, phone, title)
DOE Facility Contractor Performing Work:
Facility Contractor Point of Contact: (name, phone, title)
DOE Point of Contact: (name, phone, title)
WFO Project Start Date:
WFO Project Completion Date (if applicable):
Estimated Cost:

Introduction

DOE conducts the WFO Program in support of other Federal agencies, State and local
governments, private companies, non-profit organizations, foreign governments, and international
organizations. To better serve you, our customer, and in support of DOE's ongoing quality
initiative, we request completion and return of the attached two-part customer survey. We desire
to determine the efficiency and effectiveness of the WFO Program with regard to (1) the
administrative process and (2) technical performance.

Our goals are to assess the level of customer satisfaction with the process and technical
performance and to identify opportunities for improvement. Please use the following definitions
to respond to those questions that request a numerical score. Other questions provide an
opportunity to make comments and suggestions. Please answer these questions in as much detail
as you wish.

Score
Adjective Rating
Definition

5
Outstanding
Satisfaction cannot be improved

4
Highly Satisfactory
Exceeds expectations

3
Satisfactory
Meets expected levels

2
Marginal
Less than expected levels

1
Unsatisfactory
Less than acceptable levels

0
Not Applicable
Does not apply

CUSTOMER SURVEY

Please use the following scale to characterize your responses.

1 = Unsatisfactory, 2 = Marginal, 3 = Satisfactory, 4 = Highly Satisfactory, 5 = Outstanding

Part I (To be completed by sponsor personnel responsible for non-technical administration
of the agreement.)

1. Please specify your level of satisfaction (1 through 5) with the following aspects of the WFO
process.

a. Interactions with your point of contact at DOE ______
(e.g., responsiveness, quality, timeliness, etc.)

b. Interactions with the facility contractor
(e.g., responsiveness, quality, timeliness, etc.) ______

c. Administration of the agreement
(e.g., amendments, resolving issues, billings, etc.) ______

d. Closeout of the WFO project. ______

e. Overall satisfaction with the WFO process. ______

Please provide narrative responses to the following questions. If more space is required, please
attach additional sheets.

1. What aspects of your experience in dealing with the DOE/Facility Contractor exceeded your
expectations?

2. What aspects of your experience in dealing with the DOE/Facility Contractor did not meet
your expectations?

3. Is there anything else you would like to tell us about the non-technical aspects of this WFO
project?

Part II: (To be completed by sponsor personnel responsible for technical oversight of the
work performed under the agreement.)

1. Please specify your level of satisfaction (1 through 5) with the following aspects of the
technical performance under the WFO agreement:

a. Interactions with DOE point of contact. ______

b. Quality of statement of work and cost estimate ______

c. Technical quality of the work performed. ______

d. Quality of deliverables and compliance with schedule. ______

e. Overall satisfaction with the technical performance
under the WFO project. ______

Please provide narrative responses to the following questions. If more space is required, please
attach additional sheets.

1. What aspects of your experience in dealing with the DOE/Facility Contractor exceeded your
expectations?

2. What aspects of your experience in dealing with the DOE/Facility Contractor did not meet
your expectations?

3. Is there anything else you would like to tell us about the technical aspects of this WFO
project?

Date Signature Title
6. ADDITIONAL INFORMATION

Several publications are currently available to provide additional information relating to WFO
process (requirements and procedures) and the overall direction of the program. DOE has been
reviewing and assessing requirements and procedural issues to identify areas for improvement.
Inquires have indicated that improvements can be made which would reduce requirements and
ensure that a quality and user-friendly system exists. Since then, significant changes have been
made to WFO policy and it is important that individuals involved in the process are cognizant of
these changes. Listed below are sources of information.

DOE O 481.1, WORK FOR OTHERS (NON-DEPARTMENT OF ENERGY FUNDED
WORK), dated 9-30-96, which cancels DOE 4300.2C, NON-DEPARTMENT OF ENERGY
FUNDED WORK, dated 12-28-94. This Order sets forth the objectives, applicability,
requirements, and responsibilities for those DOE/contractor personnel performing work for
non-DOE entities or the use of DOE facilities that are not directly funded by DOE
appropriations.

DOE M 481.1, REIMBURSABLE WORK FOR NON-FEDERAL SPONSORS PROCESS
MANUAL, dated 9-30-96, provides a process to promote consistency among sites
performing work for non-Federal sponsors. This process is implemented under DOE O
481.1, WORK FOR OTHERS (NON-DEPARTMENT OF ENERGY FUNDED WORK).
A DOE Standard WFO Agreement to be used as a starting point with non-Federal parties for
reimbursable work is included.

WFO Annual Report

The WFO Annual Report contains WFO funding levels by Operations/Field Office, facility,
and contractor; DOE WFO management improvements; open issues; and examples of WFO
projects at various field sites. For more information, contact Scott Geary at 202-586-3299.

DOE WFO Brochure

DOE's WFO brochure explains the Department's WFO Program as it relates to Federal
agencies and non-Federal entities. DOE organizations frequently use these brochures to
provide general information about the WFO Program to sponsors. For more information,
contact Scott Geary at 202-586-3299.

Intelligence-Related WFO Brochure, DOE Office of Energy Intelligence

The Intelligence-Related WFO brochure, dated 11-14-95, provides procedures for
performing intelligence-related WFO and can be used in conjunction with the DOE WFO
brochure. For more information, contact Michael Mazaleski at 202-586-8718.
7. REFERENCES

Some of the directives on the following list have been canceled. Cancellation of an Order does
not, by itself, modify or otherwise affect any contractual obligation to comply with such an Order.
Canceled Orders that are incorporated by reference in a contract shall remain in effect until the
contract is modified to delete the reference to the requirements in the canceled Orders.

DOE O 451.1, NATIONAL ENVIRONMENTAL POLICY ACT COMPLIANCE
PROGRAM, dated 9-11-95, which provides NEPA implementing procedures [supersedes
DOE 5440.1E].

DOE O 471.1, UNCLASSIFIED CONTROLLED NUCLEAR INFORMATION, dated
9-25-95, which establishes policies and procedures for identifying Unclassified Controlled
Nuclear Information (UCNI) and for reviewing and marking documents and material
containing UCNI.

DOE O 471.2A, INFORMATION SECURITY PROGRAM dated 3-27-97, which
establishes requirements for the protection and control of classified and sensitive unclassified
information.

DOE 1240.2B, UNCLASSIFIED VISITS AND ASSIGNMENTS BY FOREIGN
NATIONALS, dated 8-21-92, which describes policies relating to access and technical
collaboration by foreign nationals at DOE facilities.

DOE 1300.3, POLICY ON THE PROTECTION OF HUMAN SUBJECTS, dated 8-23-90,
which implements policy of 10 CFR 745, Protection of Human Subjects.

DOE 4700.1, PROJECT MANAGEMENT SYSTEM, dated 3-6-87, which establishes the
DOE project management system.

DOE 5600.1, MANAGEMENT OF DEPARTMENT OF ENERGY WEAPON PROGRAM
AND WEAPON COMPLEX, dated 6-27-79, which establishes the policy and procedures for
the management of the DOE weapon program and weapon complex and the use of the
weapon complex facilities for non-weapon DOE activities.

DOE 5650.2B, CLASSIFICATION OF INFORMATION, dated 12-31-91, which specifies
responsibilities, authorities, policy, and procedures for the management of the DOE
classification system.

DOE 5700.7C, WORK AUTHORIZATION SYSTEM, dated 5-18-92, which establishes a
formal process for budget authorization and monitoring of DOE-funded work of specified
contractor facilities.

DOE 5800.1A, RESEARCH AND DEVELOPMENT LABORATORY TECHNOLOGY
TRANSFER PROGRAM, dated 5-18-92, which establishes a program for the transfer of
technology from DOE research and development laboratories to the public and private
sectors, in accordance with Public Law 96-480.

10 CFR 1017, Identification and Protection of Unclassified Controlled Nuclear Information,
which establishes policies and procedures for the identification and protection of UCNI.

DOE O 470.1, SAFEGUARDS AND SECURITY PROGRAM, dated 9-28-95. GUIDELINES FOR DEVELOPMENT, REVIEW, AND ACCEPTANCE OF
AGREEMENTS FOR REIMBURSABLE WORK OR SERVICES BY DOE OFFICIALS

1. APPLICABLE FOR ALL TYPES OF REQUESTING CUSTOMERS

a. All requirements delineated in DOE O 481.1 and as applicable in DOE M 481.1-1.

b. Final execution is completed before the expiration of the period of availability for
obligation of the appropriations or funds provided by a non-Federal sponsor.

c. The requestor commits to payment of a sum of money to pay the full cost of the work
requested.

d. The requestor commits to payment to a specified DOE activity.

e. The agreement provides for only specific goods or performance of work and services.

f. A federal sponsor specifies in the reimbursable agreement any statutory or other
limitations imposed on the use of funds relative to the work or services to be performed;
for example, a prohibition against purchasing automatic-data-processing or other capital
equipment or a limitation on amounts to be expended on individual minor construction
projects.

g. The sponsor specifies that funds are available and the specific source of these funds and
the period of availability.

h. The agreement states any reports required.

i. The agreement specifies if capital equipment and real property are to be procured and
who will own that property.

j. The agreement states its expiration date.

k. If an advance has been or will be received, the agreement specifies the office and
account to which it has been or will be deposited.

l. The agreement provides for a DOE project reference number; or in the case of an
intelligence-related activity, a non-classified "nickname."

m. Names and mailing addresses of the performing and requesting parties' accounting
offices are identified.

n. The agreement identifies the total estimated cost of work or services to be reimbursed.

o. The agreement includes billing information.

p. The agreement specifies that the reimbursable work will neither commence in advance of
nor continue in the absence of budgetary resources.

q. The agreement provides for reimbursement to DOE for costs resulting from termination
and environmental cleanup.

r. For non-federally sponsored work, the agreement provides for an allocation of
intellectual property rights between the contractor and the sponsor and retains a
government purpose license.

2. APPLICABLE ONLY WHEN FEDERAL, STATE, OR STATE POLITICAL
SUBDIVISIONS ARE INVOLVED

Specify requestor statutory or legal authority cited under which reimbursable work is being
requested.

a. The requestor specifies the statutory or legal authority under which reimbursable work is
to be accepted and performed.

b. When granting exemptions to the cash advance requirement for State and local
governments, the agreement provides for a statement of the statutory limitations
precluding cash advance payments.

c. The agreement cites the proper appropriation or funding source.

d. To the extent possible, both parties determine that the reimbursable agreement is being
issued for acceptance or obligation in the current fiscal year for programmatic
considerations.

e. Project Order Interagency Agreements issued by the Department of Defense are
analogous to contracts placed with commercial customers and, to the same extent as
such contracts, shall be specific, definite, and certain as to the work or services
encompassed by the agreement. Project order agreements shall not be accepted for
work or services of a recurring or routine nature (e.g., calibration services, computer
operation services, or base operations and maintenance services). Goods and services
acquired under reimbursable agreements must utilize unique capabilities at DOE facilities
to ensure DOE and/or its contractors are not placed in direct competition with the
domestic private sector (See DOE O 481.1, Section 4(a)3). Amendments to project
order interagency agreements that effectively increase the scope of work may be
proposed any time during the conduct of work in the original proposal. However, these
changes are required to be reevaluated for DOE approval in accordance with DOE
481.1 requirements.

f. Both parties ensure that work completion dates contained in the DOE-approved
proposal provide sufficient time to accomplish the requested work or services as
delineated in the statement of work. October 11, 1996
IPI-II-2-82
(Amend 2)

James Chafin, Albuquerque
Harold M. Dixon, Savannah River
Robert Fisher, Chicago
James Hanley, Oakland
Steven Hamel, Oak Ridge
Robert Southworth, Richland

Administrative Update to the Class Waiver W(A)-82-017, Use of DOE Facilities and Facility Contractors
by or for Third-Party Sponsors.

I. The above class waiver provides that the waiver is automatic, and granted without a request or
petition by the sponsor, upon certification by the local DOE Patent Counsel that:

(1) The work to be performed under the use agreement is not covered by another contract or
arrangement falling under DOE's statutory patent policy, and is not of sufficient interest to
the DOE programmatic mission responsibility to justify DOE supporting the work in
whole or in part with direct program funding;

(2) The sponsor is providing appropriate cost reimbursement for the services performed and/or
facilities used as set forth in this class waiver; and

(3) The terms and conditions for the agreement with the sponsor comply with this waiver and
instructions for its implementation as issued by the Assistant General Counsel for
Technology Transfer and Intellectual Property.

Based on the years of experience that we have in utilizing this waiver, it is clear that these
determinations are made based upon information supplied by the laboratory and for the most part
are straight forward. Therefore, DOE Patent Counsel may, at your discretion, authorize the
Contractor to make the above determinations and apply the class waiver for the benefit of the
sponsor without prior review by DOE except as provided in II below.

II. Dear 970.5204-40, requires that all M&O contracts have a technology transfer clause which
includes the following language:

(ii) "Where the Contractor believes that the transfer of technology to the U.S. domestic
economy will benefit from, or other equity considerations dictate, an arrangement other
than the Class Waiver of patent rights to sponsor in WFO and UFAs, a request may be
made to the Contracting Officer for an exception to the Class Waivers. (iii) "Rights to inventions made under agreements other than funding agreements with third
parties shall be governed by the appropriate provisions incorporated, with DOE approval,
in such agreements, and the provisions in such agreements take precedence over any
disposition of rights contained in this Contract. Disposition of rights under any such
agreement shall be in accordance with any DOE class waiver (including Work for Others
and User Class Waivers) or individually negotiated waiver which applies to the
agreement."

These provisions do not spell out either the circumstances when the class waiver should not apply
or the action to be taken when the waiver does not apply. The circumstances when the waiver does
not apply are either because the sponsor declines the waiver or because the Department acting
through the Contracting Officer based on determination of Patent Counsel finds that in a particular
WFO transaction that it is not in the best interests of the United States and the general public to
allow the Non- Federal Sponsor to retain title to inventions of the Contractor. Where the sponsor
declines the waiver, the Facility contractor is to be permitted to the take title to its employees'
inventions.

DOE has reached consensus on three fact patterns where the class waiver need not apply even
when the sponsor might desire the full waiver. They are:

(a) It is believed that any invention that might be made would be a research tool, (e.g., a
transgenic animal or a DNA sequence), and there is a Departmental and public interest in
having the tool available to many potential research and commercial organizations.

(b) The Sponsor is either foreign or owned or controlled by a foreign organization. The Class
Waiver may apply to a Work for Others Agreement with a foreign Sponsor with approval
by the field Patent Counsel and with the concurrence of the cognizant Operations/Field
Office or Headquarters programs official.

(c) It believed that the Sponsor's interest is in fewer fields of use, and it is believed that
utilization by the laboratory or commercialization of the underlying technology can be
maximized by limiting the Sponsor's exclusivity in any inventions to a particular field of
use. Of course, there may be other fact patterns where special facts exist and the situation
is such that it is not in the best interests of the United States or the general public to grant
the waiver to the Sponsor.

In advising the Contracting Officer, the field Patent Counsel is the final determiner that an
exception to the class waiver should apply. With concurrence of Patent Counsel, the Contracting
Officer may delegate to the Contractor the authority to make the determinations that the fact
patterns (a) and (c) exist independently of Patent Counsel, but under guidelines approved by Patent
Counsel. Whenever fact pattern (b) is believed to exist Patent Counsel must approve the
disposition of patent rights. The determinations (a) and (c) are not mandatory and are a judgement
call. If one or more of the above exceptions applies to the particular proposed Work for Non-
Federal Sponsors activity, the Patent Counsel should also determine whether or not the Contractor
may take title to any inventions made by its employees in performing work under a Work for
Others Agreement and whether the sponsor shall obtain a royalty free nonexclusive license for its
own activities in any such Contractor inventions. In almost all cases the sponsor should obtain at a
minimum such a license. DOE should review any circumstance where a sponsor, denied the
waiver, is not given a minimum royalty free license to use a facility contractor subject invention.
Delegations should specify disposition of title. Normally title should go to the contractor. Where
only exception (c) applies, the Sponsor must be granted a royalty free exclusive license in a
predetermined field of use or fields of use corresponding to the Sponsor's interest as mutually
agreed to by Sponsor and Contractor.

Where the class waiver does not apply, and if the Work for Non-Federal Sponsors agreement is to
be performed in the course of or under the Prime Contract for the operation of the facility, then the
terms and conditions of the prime contract governing the right of the facility contractor to elect title
to inventions shall govern. Where the class waiver does not apply, and if the agreement is not to be
performed in the course of or under the prime contract, then the agreement should provide that the
government takes title. An individual waiver or class waivers giving the facility contractor title in
any WFO agreement would also be available.

Paul A. Gottlieb
Assistant General Counsel
for Technology Transfer
and Intellectual Property
ATTACHMENT 3

Work for Non-Federal Sponsors
PROCESS CHECKLIST
This Checklist is for reference and may be amplified by the Contractor.

Issue
Description
Department
Concur

Technical Proposal
Concise description of the work requested
including schedule, milestones, reporting
requirements, and deliverables.

Detailed financial information including full-
time equivalents; direct costs, such as personnel,
supplies and expenses, travel, subcontracts,
equipment, facilities, and services; applicable
indirect costs; and depreciation and added factor
costs for each fiscal year.
N/A

Consistency with Mission
The proposed work must be consistent with or
complementary to DOE missions and the
missions of the facility.
Operations/Field
Office (as
requested)

Adverse Impact on DOE
Funded Programs
The proposed work must not adversely impact
execution of assigned programs of the facility .
Operations/Field
Office (as
requested)

Competition with the Private
Sector
The proposed work must not place the facility in
direct competition with the domestic private
sector.
Operations/Field
Office (as
requested)

Future Burden on DOE
The proposed work must not create a
detrimental future burden on DOE resources.
Operations/Field
Office (as
requested)

Human Subject Use
If the project involves human research subjects,
it must be approved by Office of Energy
Research (ER) if approval authority has NOT
been delegated to the Institutional Review Board
at facilities holding an approved Multiple
Project Assurance from Department of Health
and Human Services or Department of Energy.
ER/HQ

Animal Subject Use
If the project involves animal research subjects,
the facility must be a U.S. Department of
Agriculture-listed facility with a current
National Institute of Health assurance or
currently accredited by the Department of the
American Association for Accreditation of
Laboratory Animal Care, Inc. If not, work
cannot be performed. If so, the facility can
perform the work after its Animal Care and Use
Committee has reviewed and approved the
proposed project.
N/A

Type of Sponsor
If the project is funded by a foreign Sponsor, the
Office of Policy (PO) must review the project.
PO/HQ

Nuclear Nonproliferation
If the project involves any nuclear
nonproliferation detection technology, the
Office of Nonproliferation and National Security
(NN) must be notified.
NN/HQ

Intelligence
If the project involves intelligence-related work,
the Office of Nonproliferation and National
Security (NN) must approve the proposed
project.
NN/HQ

Space Nuclear and
Noncommercial Power
Reactor
If the project involves space nuclear or
noncommercial power reactor work, the Office
of Nuclear Energy (NE) must approve the
proposed project.
NE/HQ

Construction
If the project involves any construction or
modifications to Department facilities, the
Operations/Field Office must be notified. If the
cost exceeds the GPP threshold, the Cognizant
Secretarial Officer (CSO) and HQ Chief
Financial Officer (CFO) must approve the
proposed project.
CSO and HQ
CFO

Foreign Travel
If the project involves any foreign travel to a
sensitive country, the Operations/Field Office
must approve the travel.
Operations/Field
Office

Depreciation/Added Factor
Is a waiver of depreciation and added factor
being requested in accordance with DOE policy.
If so, the Field CFO must approve the waiver.
Field CFO

Overhead Costs
Is a waiver for costs in addition to depreciation
and added factor costs being requested (e.g.,
overhead, etc.)? If so, a detailed justification for
such waivers must be submitted to the HQ CFO
via the cognizant Program Secretarial Officer.
HQ CFO

WFO Agreement
If non-standard terms and conditions are being
used, the Operations/Field Office must approve
the modified agreement.
Operations/Field
Office

Intellectual Property
Is the proposed allocation of patent rights
consistent with the terms of the class waiver?

Is the disposition of data rights consistent with
standard DOE policy?

Operations/Field
Office (as
required by class
waiver)

Operations/Field
Office (if
exception to
DOE policy)

National Environmental
Policy Act (NEPA);
Environment, Safety, and
Health (ES&H)

Is the proposed action covered under a
categorical exclusion in 10 CFR Part 1021,
Subpart D, Appendix A? If so, no Department
notification is needed. The Department, as
necessary, will audit facility files for
appropriateness of categorizations. If the action
is not covered in Appendix A, the
documentation for a Department determination
must be submitted to the Operations/Field Office
in accordance with established procedures.

Describe any ES&H issues involved in the
proposed work, including impacts and how such
impacts will be handled.
Operations/Field
Office (if not
covered under
Appendix A)

Operations/Field
Office (as
required)

Classified, Export Controlled,
and Unclassified Controlled
Nuclear Information
Specify whether this project will involve the use
or generation of classified information, export
controlled information (ECI) or unclassified
nuclear information (UCNI). Provide a
summary of the internal review, such as who
conducted the review and what the results were,
and state how such information should be
protected. If access to classified information,
special nuclear materials (SNM), or unescorted
facility security areas is involved in the project,
a foreign ownership, control, or influence
(FOCI) questionnaire must be completed. Also,
the Operations/Field Office must be notified if
classified information, UCNI, or SNM are being
used or generated.
Operations/Field
Office (as
required)

Conflict of Interest
Review project personnel for any affiliations
that could present the appearance of Conflict of
Interest (e.g., consulting role, director position,
controlling interest in a spin-off company).
Where Conflict of Interest appears to exist,
describe the mitigating measures taken to
reduce the impact on the work. The laboratory
must state that it will continue to monitor the
Conflict of Interest status of each identified
person as follows, "Each employee of the
Laboratory has completed a Conflict of Interest
statement that complies with the contract. If
during the course of the work, conflicts are
revealed, steps will be taken to manage and/or
mitigate them."
N/A