1. Sponsored Projects Office 1 Selected slides Presented to GAO Jeff Weiner August 2008

2. Sponsored Projects Office 2 General Observations WFO it is not a helpful or descriptive term Does not sufficiently capture the outstanding work we do in support of non-DOE customers Does not communicate the fundamental nature of work to those who fund our enterprise It is does not convey the fundamental nature of partnering, nor the mutual benefits that accrue to the sponsor, DOE or the Lab Suggests that we are a “body shop” Really problematic for foundations and State agencies

3. Sponsored Projects Office 3 General Observations We need a new name (Work with Others, Sponsored Research, Partnership Program etc) Non-DOE sponsored research complements LBNL’s mission for DOE and strengthens the Lab’s distinguishing competencies. LBNL considers that its WFO portfolio is in effect “Work With Others” as it is largely a collaborative effort that strengthens DOE’s capabilities for research as well as providing basic and applied research with other sponsors.

4. Sponsored Projects Office 4 Terms and Conditions DOE has very inflexible terms and conditions in its WFO agreements. –The liability clauses, especially general indemnity, are problematic for many partners. –No mutuality as in University agreements Conflict between DOE WFO requirements and federal flow-down terms and conditions

5. Sponsored Projects Office 5 Terms and Conditions (cont.) Federal Agencies issue grants and contracts to Universities and small businesses that contain terms and conditions that require flow-down to subcontractors. Conflicts arise between the prime contract flow-down requirements and the DOE WFO Order requirements that the DOE Lab must follow…. DOE’s requirements such as advance payment, no outside audit, and indemnification is sometimes in direct contradiction to these flow-down requirements. This results in protracted negotiations and much time spent by Lab, DOE and the sponsor agencies staff in trying to resolve the issues.

6. Sponsored Projects Office 6 Financial Advance Payment Requirements – For non-federal sponsors, DOE requires a 90 day advance payment be maintained throughout the life of the project. In order to meet this requirement, LBNL and other DOE Laboratories must receive a 4 month advance from its non-federal sponsors. This requirement frequently is an issue to sponsors especially for small businesses or universities who are being funded by a federal or state agency who will only pay them for costs incurred.

7. Sponsored Projects Office 7 Financial The requirement to manage “cash” at the individual award level is time consuming and very labor intensive. The old requirement of managing at the B&R level would be a cost saving and eliminate stopping and starting work.

8. Sponsored Projects Office 8 Financial Allow the Labs to accept work on less than full cost recovery for Foundations, non profits and federal agencies that have published program rules which limit OH recovery. Many foundations, for example, do not permit OH or limit OH and the Labs cannot apply

9. Sponsored Projects Office 9 Level of Non-DOE Funding A significant effort is undertaken each year to predict the amount of future WFO funding and/or justify why current predictions and achievements are in excess of previous predictions. LBNL is encouraged to leverage DOE funds, work with industry yet DOE expresses concern on the amount we do. DOE should, by policy and action, encourage the Lab to do valuable scientific work limited only by the resources available and programmatic direction of Lab management. Instead of questioning the amount of WFO, the Lab should be rewarded for optimizing its work force and satisfying the research needs by its private and federal sponsors.

10. Sponsored Projects Office 10 Alternate Funding Mechanisms for Tech Transfer Not all non-DOE funding is “Work For Others” wherein the sponsor is requesting specific work to be performed. More and more work is “sponsored research” where the Lab is seeking funding from non-profit foundations and other organizations to support ideas and projects of interest to LBNL and DOE.

11. Sponsored Projects Office 11 Alternate Funding Mechanisms for Tech Transfer (continued) We are not performing work for these agencies, but using their funds to support research, training or education that is in the national interest. DOE should allow for alternate funding mechanisms using sponsor terms. If a funding agency has standard grant or contract terms, those should be the starting place for negotiation rather than insisting on their accepting DOE terms Not a one size fits all for Sponsored work

12. Sponsored Projects Office 12 SPO Funding by Technology Transfer Type

13. Sponsored Projects Office 13 SPO Award Portfolio by Technology Transfer Type

14. Sponsored Projects Office 14 SPO Technology Transfer Funding by Sponsor Type

15. Sponsored Projects Office 15 SPO Award Portfolio by Sponsor Type

16. Sponsored Projects Office 16 SPO Technology Transfer Funding by Major Research Area

17. Sponsored Projects Office 17 SPO Technology Transfer Funding by Top 5 Research Divisions

18. Sponsored Projects Office 18 Work for other DOE Labs LBNL has a portfolio of work for other DOE Labs Not considered WFO but is a mechanism to transfer knowledge to other Labs and prime funders Averages $15-20 mill/year No DOE approval needed unless over $1 mill Largest project is: –Yucca Mountain- site characterization studies aimed at understanding the barrier function of the unsaturated zone above the water table.