ARTICLE VI: PRINCIPLES OF OPERATION

ARTICLE VI, CL. 1 - GENERAL STATEMENT (SPECIAL)

This article embodies essential and fundamental principles to which the University and the DOE subscribe. The Principles of Operation are formally recognized in Article V, Clause 2, "Order of Precedence," of this contract in that any resolution of a disputed interpretation of clauses, other than those set forth in this Article VI, shall be consistent with the Principles of Operation set forth below.

ARTICLE VI, CL. 2 - NO GAIN/NO LOSS OPERATION (SPECIAL)

(a) The University of California is chartered through Article IX of the State Constitution as the research university of the State of California. The University has managed the Laboratory as a public service to the nation, an undertaking from which the government agrees the University should neither gain nor lose financially.

(b) The DOE and the University agree that the government shall fund the operations under this contract by advance payments and that the University, by virtue of its public charter and the not for profit nature of its operation as an instrumentality of the State, is not obligated to advance any funds or to otherwise expend University funds in any operations under this contract.

ARTICLE VI, CL. 3 - INTELLECTUAL AND SCIENTIFIC FREEDOM

(a) The DOE and the University recognize the importance of fostering an atmosphere at the Laboratory conducive to scientific inquiry and the development of new knowledge and creative and innovative ideas related to important national interests. The federal government has further agreed that the University is vested with unique capabilities to provide such an environment which is essential to the optimal performance of the Laboratory and accomplishment of its missions.

(b) The parties further recognize that the free exchange of ideas among scientists and engineers at the Laboratory and colleagues at universities, colleges, and other laboratories or scientific facilities is vital to the success of the scientific, engineering, and technical work performed by Laboratory personnel.

(c) In order to further the goals of the Laboratory and the national interest, it is agreed by the parties that the scientific and engineering personnel at the Laboratory shall be accorded the equivalent rights and obligations of University faculty with respect to the publication or other dissemination of research, and participation in open debate and in scientific, educational, or professional meetings or conferences, subject to the limitations included in technology transfer agreements and such other limitations as may be required by the terms of this contract.

ARTICLE VI, CL. 4 - BALANCE OF SCIENCE AND RESPONSIBLE MANAGEMENT (SPECIAL)

The University and DOE have structured this contract in a manner intended to strike the appropriate balance between responsible management oversight and scientific freedom. Both parties recognize the importance of structuring Laboratory management oversight efforts in a manner which will foster the conduct of the highest level of scientific, engineering, and technical endeavors and will permit the University to perform its obligations under this contract.

ARTICLE VI, CL. 5 - ENHANCED UNIVERSITY MANAGEMENT EFFORTS AND CONCOMITANT RESTRUCTURING OF DOE ON-SITE OVERSIGHT AT THE LABORATORIES (SPECIAL)

(a) The University and the DOE agree that a significant enhancement in Laboratory management oversight will be provided by the University, consistent with the terms of this contract.

(b) The enhanced management oversight will include formation of a President's Council on the National Laboratories which will be advisory to the President of the University on operational and programmatic aspects of the Laboratory. The University also will establish in the Office of the President of the University an administrative unit responsible for management oversight of the Laboratory.

(c) The enhanced University management role will permit the DOE to restructure its on-site oversight at the Laboratory to achieve greater cost efficiency in its operations and to avoid duplication of efforts. The University will cooperate with the DOE in facilitating this restructuring of DOE's oversight functions.

ARTICLE VI, CL. 6 - USE OF OBJECTIVE STANDARDS OF PERFORMANCE, SELF-ASSESSMENT AND PERFORMANCE EVALUATION (SPECIAL)

(a) The University and DOE agree that the University will utilize a performance based management system for Laboratory oversight. The performance based management system will include the use of clear and reasonable objective performance measures agreed to in advance as standards against which the University's overall performance of administrative and/or managerial obligations under this contract will be assessed.

(b) The parties agree that the University will conduct an on-going self-assessment process, including self-assessments performed at the Laboratory, as the principal means by which to evaluate compliance with the performance measures which are contained in Appendix F against which the University's overall performance of obligations under the contract will be determined.

(c) Further, the University and the DOE agree that the parties will utilize a specially designated process described in Appendix F, Section B, to evaluate administrative, scientific, engineering, and technical work of the Laboratory. The performance evaluation process will be the basis for determining the University's Laboratory Executive Program salary increase authorization multiplier. DOE will determine the value of the multiplier to be applied to the Laboratory Executive Program salary increase authorization, from a range of not less than .75 to not more that 1.50, in accordance with Appendix A to this contract. The DOE and the University further agree that the evaluation process, described in Appendix F, Section B, will be reviewed annually and modified, if necessary, by agreement of the parties.

(d) DOE, as a part of its responsibility for oversight, evaluation and information exchange, is responsible for providing programmatic and administrative appraisals and reviews of the Laboratory's and the University's performance of authorized research and development programs in accordance with the terms and conditions of this contract.

(e) The DOE shall conduct a validation program to appraise and evaluate the performance of the work under this contract, based upon its inspection, as a means of fulfilling its public accountability role in assessing contract compliance. Annually, the Contracting Officer shall provide a written assessment of the Laboratory's performance hereunder to the University which shall be based upon the DOE appraisal program and the Contracting Officer's evaluation of the University's self-assessment.

ARTICLE VI, CL. 7 - PUBLIC AFFAIRS AND NEWS RELEASES (SPECIAL)

(a) The University and the DOE agree that the University, as a public institution of higher education, has an obligation and long standing tradition of academic freedom and openness to public inquiry. The University and the DOE also recognize the importance of coordination between the parties with regard to the areas covered in this clause so as to achieve public policy objectives important to the nation. As a federal agency, DOE must assure that news releases which describe its policies and procedures as related to the operation of its national scientific laboratories do so on an accurate and timely basis. Accordingly, the parties recognize the importance of advanced coordination of media releases pertaining to laboratory activities so as to assure achievement of their respective goals in this regard.

(b) Consistent with these principles, the University and DOE will exercise diligent efforts to inform each other in advance of significant public affairs events or other major activities. When such advance exchange is not possible operationally, each party shall promptly furnish the released information to the other party concurrent with its release.

(c) The University shall not release information attributed directly to DOE or which purports to represent established DOE policy without the advance concurrence of DOE. Nothing in this clause shall be construed so as to limit the right of the University to publicize the results of its scientific research.

(d) In order to facilitate the timely exchange of information between the University and DOE related to media releases and public affairs, discussions among appropriate staff will occur on a regular basis.

(e) In all public releases of information related to the Laboratory, there shall be prominently displayed a statement that the Laboratory is a DOE facility which is operated by the University of California under a management and operating contract.

ARTICLE VI, CL. 8 - PROSPECTIVE CONTRACTING OFFICER DIRECTIVES - ADVANCE CONSULTATION AND TREATMENT (SPECIAL)

(a) The University and DOE agree that consultation shall occur on the content of proposed Contracting Officer directives, as defined in Article II, paragraph (m), in advance of a determination by the Contracting Officer as to the applicability of a directive to this contract. The consultation will permit the University to evaluate the potential financial or programmatic impact of the proposed directive on the management and operation of the Laboratory. This process shall be in accord with the provisions of Article XV, Clause 3, "Procedure for Treatment of Prospective DOE Directives and Extant DOE Orders," of this contract.

(b) The DOE shall, to the maximum extent practicable, furnish the University drafts of such directives for the purpose of seeking an assessment of potential financial or programmatic impact of the proposed draft directive as far as possible in advance of finalization of the directive.

ARTICLE VI, CL. 9 - TECHNOLOGY TRANSFER (SPECIAL)

The University's work under this contract includes the transfer of technology derived from Laboratory employee performance of research (i) sponsored by DOE under this contract, (ii) sponsored by DOE and others under Cooperative Research and Development Agreements (CRADAs), (iii) sponsored by others under Work for Others (WFO) agreements, and (iv) accomplished under Laboratory employee technical consulting exchanges. As provided in Article XII, Clause 11, "Technology Transfer Procedures," of this contract, the University's Laboratory technology transfer activities are allowable costs under this contract and are intended (i) to enhance U.S. competitiveness in service of the national economic interest, (ii) to benefit the public through commercially effective utilization of technological advances, and (iii) to maintain an enhanced national security. The University's transfer of technology derived from complimentary and beneficial programs, or University Research and Supporting Efforts for the Laboratory by University employees other than Laboratory employees and without the use of research facilities located at the Laboratory, are University technology transfer activities conducted by the University and are not subject to the provisions of this contract except as provided in Article XII, Clause 1," Patent Rights," and Article XII, Clause 7, "Rights in Data," of this contract.

ARTICLE VI, CL. 10 - CONTRACT RECORDS (SPECIAL)

(a) Government-owned Records. Except for those records owned by the University pursuant to paragraph (b) below, all records acquired or generated by the University's employees at the Laboratory or at the University's Laboratory Administrative Management Oversight Unit in the performance of this contract, shall be the property of the Government and shall be delivered to the Government or otherwise disposed of by the University in accordance with the terms of this contract or as directed by the Contracting Officer during the term of this contract or upon its termination or expiration.

(b) University-owned Records. Administrative and financial records (to the extent not listed and maintained as Privacy Act records pursuant to Article XI, Clause 4 of this contract), acquired or generated by the University's employees at the Laboratory or at the University's Laboratory Administrative Management Oversight Unit in performance of this contract, shall be owned by the University including but not limited to the following:

(c) Inspection, Audit and Copying of Records. The University may reproduce and retain copies of the Government-owned records defined in paragraph (a). At all reasonable times and at the Laboratory facilities, the Government may inspect, audit and copy the University-owned records defined in paragraph (b) except for the following records:

(d) Legally Privileged University Records. The University and the Government acknowledge that this government facility management and operation contractual relationship is unique among government contracts, requiring a cooperative and close working relationship since the government furnishes all the funds utilized by the University in operating the Laboratory and provides the University a broad indemnity designed to protect the University from economic loss for the operation of the Laboratory. Accordingly, the University and the Government share a community of interest in the consequences in the conduct of the Laboratory's operation and the parties agree that the Government's right to inspect, audit and copy University-owned privileged records, as provided in paragraph (c) above, shall not be construed so as to waive or impair any privilege or other protected status of such records, or the information or data they contain.

(e) Records Covered by California Privacy Law. The parties acknowledge that some University-owned records could create obligations under California law which would impact upon the timing, scope, and availability for the Government's inspection, audit, and copying. The parties further recognize that the California Information Practices Act permits the release of certain personal information to federal agencies when required by federal law, and that DOE may need access to such information to carry out its federal statutory responsibilities. The University will honor DOE written requests for information concerning individuals which specify the records sought, provided the federal law requires such disclosure and DOE specifies the said federal law and the factual basis for the requested record access. The parties agree (i) that records relating to employee assistance programs, to alcohol and drug abuse programs, and to psychiatric evaluations will not be released by the University without a court order, and (ii) personal information obtained by DOE from the University-owned records, whether pursuant to this contract or otherwise, are to be protected under the Federal Privacy Act and other applicable federal law. The University agrees to promptly review DOE requests for access to University records and to reply within a reasonable time. If in the judgment of the University's General Counsel, the University cannot provide the requested records in a particular circumstance due to the state constitutional or statutory rights of privacy, notwithstanding DOE's cited federal law, the parties may pursue the request through the Issues Resolution Process provided in Article XVI, Clause 2, of this contract.

(f) Information required for the performance of epidemiological or other health and safety studies shall be provided by the University, subject to the limitations of this clause. The University shall respond promptly to all such requests. The parties shall determine the best means of providing the requested information on a case-by-case basis to assure privacy considerations.

(g) DOE agrees to indemnify and hold harmless the University for any and all costs, expenses, damages or judgments of any kind or nature associated with or arising from any release of records pursuant to the provisions of this contract, including any release of records by the University to DOE, any release of records by DOE, or any subsequent use of such released records subject to the availability of appropriated funds. The University may treat any such costs, expense, damage or judgment as an allowable cost under this contract subject to the availability of appropriated funds.

ARTICLE VI, CL. 11 - DOE RESPONSIBILITIES; ADMINISTRATIVE INTERACTIONS (SPECIAL)

(a) DOE responsibility.

(b) Administrative interaction between DOE and the Laboratory. Any proposed DOE administrative direction to the Laboratory which involves an administrative area and which is related to the conduct of research and development or program work will be provided by the Contracting Officer to the University's administrative unit described in Clause 5 of this Article.

Go to Article VII
Return to Contract 98 Table of Contents