The Laboratory's mission statement, attached as Appendix K to this contract, shall be amended from time to time as approved by the Contracting Officer.
(b) A management and operating contract for the performance of research and development and basic research is characterized by its special purpose and by the special relationship it creates between the Government and the University. Government-owned facilities must be utilized to further national interests and to perform DOE's statutory mission in the areas of energy research and development and basic and applied research.
(c) Because of the nature of the work and because the work is to be performed in Government-owned facilities, the DOE must maintain a close relationship with the University and the University's personnel in various important areas such as environment, health and safety. The conduct of the work under this contract is substantially separate from the University's other business.
(d) The performance of the work under this contract is directly related to the accomplishment of DOE's statutory mission and is of a long-term and continuing nature, and there is a need (1) to ensure its continuity and (2) for special protection covering the orderly transition of personnel and work in the event of a change of contractors.
(e) The benefits of the University's management and operation of the Government-owned research and development installations, such as the Lawrence Berkeley Laboratory, are most fully attained when the University as the contractor, within the terms of the contract, effectively brings its scientific and technical leadership, as well as its management expertise and capabilities to bear upon the performance of the work under this contract.
(f) The direction of the Laboratory must be in the hands of leaders of widely respected scientific, technical, and managerial competence, capable of attracting, retaining and managing outstanding scientific and technical personnel, and possessing the administrative skills to effectively and efficiently manage and operate a complex operation with extensive facilities and a wide range of programs.
(g) The competence and quality of any research organization derives from the competence and quality of those individuals who are actively engaged in the creative scientific, technical and engineering work carried on by the organization. However, there must be an appropriate balance between scientific freedom and accountability and responsible management oversight.
(h) Experience has demonstrated that high quality basic research can most effectively and best be conducted by permitting the individual investigator to pursue the work with scientific freedom essential for an effective creative effort. However, there must be an appropriate balance between scientific freedom and accountability and responsible management oversight.
(i) The conduct of applied research and development requires a very high degree of program coordination between the Laboratory and DOE or the sponsor. Responsiveness by the Laboratory to DOE and the sponsor's needs and requests strengthens the effectiveness of the Government-owned Contractor-operated research and development laboratory arrangement.
(j) The conduct of research and development at the forefront of the scientific and technical fields which lie within the scope of the Laboratory's responsibility often requires the best and most modern (state-of-the-art) equipment, experimental facilities and library resources available. Since experience has demonstrated that obsolescence of equipment in these fields is rapid, a continuing, active and affirmative program of supplementing and replacing such equipment is essential to scientific progress.
(k) Business and administrative aspects of the operation of the Laboratory such as salaries and budgets, procurement, property, overhead, audit and internal controls, must be controlled and managed by the University in a manner responsive to the obligations of public accountability.
(l) The parties recognize the importance of protecting the environment and the health and safety of laboratory employees and the public in the conduct of Laboratory activities.
(b) Program Development, Work Authorizations and Approved Funding Programs.
(ii) It is the responsibility of DOE to formulate an overall program, taking into consideration the proposals submitted by the Laboratory, consistent with funds appropriated by the Congress and all its other program needs.
(iii) The Laboratory shall prepare a final work program and budget in accordance with the actions taken by DOE. Upon DOE approval, it is the University's responsibility to conduct its operations as closely as possible within the limits established by these approvals unless and until they are modified.
(iv) Throughout the process of program and budget development and approval, both the DOE and the University recognize the desirability for close consultation, for advising each other of plans or developments on which subsequent action will be required, and for attempting to reach mutual understanding in advance of the time that action needs to be taken.
(2) Annual Programs and Financing. In accordance with the basic principles stated in paragraph (b)(1) of this clause, it is the intent of the University and DOE to utilize the Program Budget procedures on a Government fiscal year basis for the establishment of the Laboratory Program Budget. Procedures for the presentation of work programs and cost estimates shall be jointly developed. In order to meet the requirements of Government budgetary practice, the parties agree:
(ii) Prior to April 1 (or such other date as may be agreed upon) the University shall submit a comprehensive work program for the next two succeeding fiscal years, together with a description of the current work program, and the University shall submit a budget estimate for the next two succeeding fiscal years, together with a revised budget estimate for the current fiscal year.
(iii) As soon as possible after October 1 of each year, DOE shall issue Work Authorizations and an Approved Funding Program to the University for the current fiscal year.
(iv) DOE approval of the work program and budget estimates shall be reflected in Work Authorizations/Annual Program Letters/Activity Data Sheets and Approved Funding Programs. These documents will be issued to the University as soon as possible after funds become available. If, in preparing Work Authorizations/Annual Program Letters/Activity Data Sheets and Approved Funding Programs, it is determined that changes are needed in the work program and budget estimates submitted by the University, DOE and the University shall agree upon the changes in the work before final issuance of these documents.
(B) Additional programs and projects to be conducted by the Laboratory may be established by agreement between the DOE and the University.
(C) If the DOE develops a Work Authorization Plan for nonprofit management and operating contractors, the University will treat the Plan, as proposed by the Contracting Officer, pursuant to the provisions of Article XV, Clause 1, "Contract ModificationssGeneral."
(v) A contract modification shall be issued to the University on or before September 30 of each year (or such other date as may be agreed upon) to provide additional funds, and further contract modifications may be issued or entered into from time to time to provide appropriate modifications in the total amount of funds made available under the contract. DOE agrees to use its best efforts to provide stable funding in support of the contract work and it is therefore DOE's intention that there shall be so provided at all times sufficient funds to support the contract operations at the level authorized by DOE.
(vi) During the course of the work, DOE shall review the work program and its costs based upon information submitted by the University and may, after consultation with the University, revise the Work Authorizations and Approved Funding Programs established by DOE under subsection (iv) above and with the agreement that the University make any necessary revisions to the documents cited in this clause.
(3) Long-Term Programs. It is the intent of the University and DOE to agree from time to time upon long-term work programs covering certain portions of the work to be performed under this contract.
(c) Estimates and Cost Information. The University shall maintain current cost information adequate to reflect the cost of performing the work under this contract at all times while the work is in progress, and shall prepare and furnish to the Government such written estimates of cost and information in support thereof as the Contracting Officer may request.
(b) In the event that a work for others project is intended to be continuous, but funding authorizations are not provided on a timely basis to the Laboratory, DOE authorizes the University to continue work at the University's expense with the University's money, when assured by the sponsor as to the continuation of funding, for a period not to exceed 90 days, and to retroactively charge costs to the work for others sponsor for any periods during which the University provided financing for the work and for which the sponsor has provided funding.
(c) Nothing herein authorizes the Laboratory to start work prior to initial authorization of funds or, except as provided in (b) above to continue work beyond the level of available funding.
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