740.1 Purpose

This chapter outlines policies used for the performance of billable work
for the benefit of other clients as described in 740.2(A). This includes
all commodities, work, or services provided by Bonneville Power
Administration (BPA) for clients for which BPA is to be paid, regardless
of whether payment is made by advance payment, progress payments, or
payment after the work is completed.

BPA performs this work through billable agreements as defined in section
Definitions, 740.2(B). Delegations of authority to sign these agreements
are contained in BPA Manual Chapter 21, Internal Delegations of
Authority.

740.2 Definitions

**A.** **Billable Work for Others**: Work or services performed by BPA
at the request of and for the benefit of a client, governmental agency
(federal, tribal, state, regional, local or foreign) or other entity
(retail utility, nonprofit organization, cooperative, domestic or
foreign). The client initiates a request that BPA perform energy
efficiency work or services, and agrees to pay BPA for the direct and
indirect costs of doing such work or service, including all applicable
overhead expenses.

**B.** **Billing Agreement:** An agreement between BPA and the client
for work or service to be performed, describing the amount to be paid
along with the financial terms and conditions, and any other relevant
terms, including payment method (i.e., payment in advance, progress
payments, or payment in arrears). The type of billing agreement chosen
(e.g., contract, MOA, interagency agreement, MOU, letter agreement) will
vary, on a case-by-case basis, depending upon the type and circumstances
regarding the work or service performed and needs of the client
(governmental agency or other entity) and BPA.

740.3 AUTHORITY

The authority to enter into Energy Efficiency billable agreements to
perform billable work for others is the Bonneville Project Act (16
U.S.C. 832 a (f)).

A.  **BPA may enter into billable agreements** and/or orders for
    billable work for others in accordance with the Energy Efficiency
    operating policy and procedures.

**B.** **Before billable work commences**, BPA will enter into a billing
agreement, and/or order for billable work for others, signed by
appropriate officials. When costs are incurred prior to signing the
agreement, such as preliminary design work and/or other activities
necessary to reach agreement, the client will be notified in writing
prior to incurring such costs. Costs of these items are to be included
in the agreement. Such agreements will contain a description of the work
or service to be performed; timeframes for work accomplishment;
estimated costs and financial terms; a funds citation and payment
provision; signature of appropriate officials; and any other applicable
requirements.

**C. A separate account will be established** for each agreement and/or
order for billable work for others under an agreement. All allocable
billable costs of doing the work, including overheads, will be charged
or distributed to the applicable account.

**D. Advance payments may be requested** by BPA for the full estimated
cost of providing the ordered supplies or services. Progress payments
may be requested for the actual costs incurred for supplies provided or
services performed.

**E. Modification of an agreement**, or order for billable work for
others under an agreement, may be required for changes within the scope
of the original agreement or order. Additional funding may be required
from the client before BPA can proceed with the revised scope of work.

**F. Final project cost variances** from original estimates will be
reviewed after project completion so that timely billing can be
accomplished. Appropriate differences will be requested from or refunded
to the client.

**G. The BPA official signing** the agreement warrants that all of the
conditions of this chapter and other BPA Manual chapters have been met.

**740.4 OPERATING PROCEDURES**

**A. Prepare the agreement/order**.

**B. Coordinate the agreement**/order with all affected parties.

**C. Have the agreement**/order signed.

**D. Open an account**.

**E. Perform work, incur costs, and charge** the proper account.

**F. Keep the agency/entity informed** of the work progress and costs on
an as needed basis.

**G. Inform Accounting Operations** upon completion of the work.

**740.5 AUTHORITY TO WAIVE PROVISIONS**

All applicable costs are normally charged to billable accounts
(consistent with Energy Efficiency's Federal Pricing Policy for work for
federal agencies). Contract provisions may, however, be waived in
exceptional or unusual circumstances. Such waivers will be processed in
accordance with BPA Manual Chapter 20, which requires that waivers be
coordinated with General Counsel, and Policy Management and Finance,
prior to signature by the BPA official authorized to sign the billable
agreement/order.