**FUNDING OPPORTUNITY**

**MASTER ANNOUNCEMENT**

**NO. DE-PS26-04NT15450-0**

![](media/image1.wmf){width="2.5368055555555555in" height="2.5in"}

**"OIL EXPLORATION AND PRODUCTION PROGRAM SOLICITATION"**

**CONTACT: JULIANA HEYNES, CONTRACT SPECIALIST**

**TELEPHONE NO.: 412-386-4872**

**FAX NO.: 412-386-6137**

**E-MAIL: <heynes@netl.doe.gov>**

**ISSUING OFFICE:**

**U.S. DEPARTMENT OF ENERGY**

**NATIONAL ENERGY TECHNOLOGY LABORATORY**

**626 COCHRANS MILL ROAD**

**P.O. BOX 10940, MS 921-107**

**PITTSBURGH, PA 15236-0940**

> **ISSUE DATE: November 4,
> 2003**![](media/image2.wmf){width="2.0791666666666666in"
> height="1.4506944444444445in"}
>
> **APPLICATION DUE DATE: February 10, 2004**
>
> **(8:00 P.M. EASTERN TIME)**
>
> **Information regarding this solicitation is available on the**
>
> **Department of Energy**
>
> **Industry Interactive Procurement System (IIPS)**
>
> **Website at: [*http://e-center.doe.gov*](http://e-center.doe.gov/)**

**[TABLE OF CONTENTS]{.underline}**

SECTION I - TECHNICAL REQUIREMENTS

1.1 SUMMARY [2](#__RefHeading___Toc54672521)

1.2 BACKGROUND INFORMATION [2](#__RefHeading___Toc54672522)

1.3 SOLICITATION OBJECTIVES [4](#__RefHeading___Toc54672523)

SECTION II - CONDITIONS AND NOTICES

2.1 APPLICANT ELIGIBILITY (MAY 2001) 10

2.2 TYPE OF AWARD INSTRUMENT-COOPERATIVE AGREEMENTS (OCT 2003) 11

2.3 EXPECTED NUMBER OF AWARDS (OCT 2003) 11

2.4 COST SHARING REQUIREMENTS (DEC 1999) 11

2.5 ESTIMATED FUNDING (OCT 2003) 11

2.6 PERIOD OF PERFORMANCE (OCT 2003) 11

2.7 REPORTING REQUIREMENTS (FEB 2001) 12

2.8 APPLICATION DUE DATE (OCT 2003) 12

2.9 DUNS NUMBER (OCT 2003) 12

2.10 PROGRAM AREAS OF INTEREST (OCT 2003) 12

2.11 MORE THAN ONE APPLICATION (JAN 2003)
[13](#__RefHeading___Toc54672530)

2.12 ANTICIPATED ANNOUNCEMENT AND AWARD DATES (OCT 2003) 13

2.13 CONTENT OF RESULTING AWARD (NOV 2000)
[13](#__RefHeading___Toc54672531)

2.14 APPLICATION PREPARATION COSTS (DEC 1999)
[13](#__RefHeading___Toc54672532)

2.15 COMMITMENT OF PUBLIC FUNDS (OCT 2003) 13

2.16 FALSE STATEMENTS (AUG 1999) [13](#__RefHeading___Toc54672534)

2.17 CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER (CFDA)

(DEC 2000) [13](#__RefHeading___Toc54672535)

2.18 PARTICIPATION BY FEDERAL ORGANIZATIONS OR FEDERALLY AFFILIATED

ORGANIZATIONS (JAN 2003) [14](#__RefHeading___Toc54672536)

2.19 DETERMINATION OF RESPONSIBILITY (JAN 2001)
[14](#__RefHeading___Toc54672537)

2.20 EVALUATION BY NON-FEDERAL REVIEWERS (OCT 2003)
[15](#__RefHeading___Toc54672538)

2.21 APPLICATION CLARIFICATION (JULY 1999) 15

2.22 APPLICATION ACCEPTANCE PERIOD (AUG 1999) 15

2.23 GOVERNMENT RIGHT TO REJECT OR NEGOTIATE (OCT 2003) 15

2.24 INTERGOVERNMENTAL REVIEW (OCT 2003) 15

2.25 LOANS NOT AVAILABLE (JULY 1999) [15](#__RefHeading___Toc54672541)

2.26 52.227-6 ROYALTY INFORMATION. (APR 1984)
[15](#__RefHeading___Toc54672542)

2.27 952.227-84 NOTICE OF RIGHT TO REQUEST PATENT WAIVER. (FEB 1998)
[16](#__RefHeading___Toc54672543)

2.28 PERFORMANCE OF WORK IN THE UNITED STATES (FEB 2001)
[16](#__RefHeading___Toc54672544)

2.29 NOTICE REGARDING ELIGIBLE/INELIGIBLE ACTIVITIES (AUG 1999) 16

2.30 LOCATE SOLICITATION, JOIN MAILING LIST, SUBMIT QUESTIONS,

VIEW AMENDMENTS OR QUESTIONS AND ANSWERS (SEPT 2003) 17

SECTION III -APPLICATION PREPARATION AND SUBMISSION REQUIREMENTS

3.1 APPLICATION PREPARATION INSTRUCTIONS (OCT 2003) 18

3.2 ALLOWABLE/UNALLOWABLE PROJECT COSTS FOR COST SHARING 25

3.3 OTHER SUBMISSION REQUIREMENTS (OCT 2003) 28

3.4 REVISIONS, DELETIONS, AND WITHDRAWAL OF APPLICATIONS (JAN 2003)
[29](#__RefHeading___Toc54672547)

3.5 UNNECESSARILY ELABORATE APPLICATIONS AND FILE SIZE LIMITATIONS

(FEB 2003) [29](#__RefHeading___Toc54672548)

3.6 PROPRIETARY APPLICATION INFORMATION (OCT 2003) 30

3.7 APPLICATION SUBMISSION REQUIREMENTS FOR PARTICIPATING DOE M&O

CONTRACTORS, NON-DOE FEDERALLY FUNDED RESEARCH AND

DEVELOPMENT CENTERS (FFRDC\'S) OR FEDERAL AGENCIES (JAN 2003)
[30](#__RefHeading___Toc54672550)

SECTION IV - EVALUATION AND SELECTION

4.1 INITIAL REVIEW CRITERIA (OCT 2003) 32

4.2 MERIT REVIEW CRITERIA (OCT 2003) 32

4.3 OTHER SELECTION FACTORS (OCT 2003) 33

4.4 REVIEW AND SELECTION PROCESS (OCT 2003) 34

SECTION I -- TECHNICAL REQUIREMENTS

1.  **[SUMMARY]{.underline}**

[]{#__RefHeading___Toc54672521 .anchor}

The primary mission of the Department of Energy (DOE) - National Oil
Program, implemented through the National Energy Technology Laboratory
(NETL)=s National Petroleum Technology Office (NPTO) in Tulsa, OK, is to
conduct oil related research and development activities. The purpose is
to expand the knowledge base through which industry can bring additional
oil reserves and new technology options into the marketplace in a cost
effective and environmentally acceptable manner. The goal of this
exploration and production program solicitation is to support research
that supplements and complements but does not duplicate or displace
private and other public research and development efforts. The objective
of the solicitation is to select midterm type research projects that
will focus on cost effectively improving current technologies.

The projects selected will add to the technological base by increasing
production efficiency, improving predictive models and reservoir
management planning, and by developing techniques for discovering oil in
complex trapping systems. The efforts will support the President's
"Clear Skies" initiatives by answering questions surrounding the
increased use of CO2 for Enhanced Oil Recovery, allowing more CO2 to be
injected into geologic formations. Reducing drill costs, improving
reservoir descriptive capabilities, and maximizing the utility of
simulation models and theoretical approaches will support overall
Resource Optimization and Carbon Management goals. The results will have
benefits beyond the CO2 efforts as well, by improving the industry
performance and extending the life of producing fields.

**1.2 [BACKGROUND INFORMATION ]{.underline}**
[]{#__RefHeading___Toc54672522 .anchor}

The goals of the Department of Energy's Fossil Energy (FE) Oil Program
are derived from the National need for increased oil production as a
part of the national security requirements for Federal lands stewardship
and increased protection of the environment. The core research program
of NETL continues to support these goals through carefully selected
projects from similar program solicitations. Approximately two-thirds of
all the oil discovered in the United States remains in the ground. This
effort will provide further development of technologies to recover the
remaining reserves in the domestic arena. Technological advances can
also be applied by companies in foreign reserves, increasing global
supplies as well. The program supports the national energy policy goals
to increase domestic oil exploration through continued partnership with
public and private entities and to promote enhanced oil recovery from
existing wells through new technology. By providing support to the
development of improved and of new technologies in three areas, the
results should improve oil recovery and increase hydrocarbon reserves.
This will augment the domestic oil supply.

This solicitation has three separate Areas of Interest:

**Area 1 -- Drilling Technology for High Speed Downhole Motors**

Area 1 is limited to one technical topic. Applications in Area 1 will be
for projects designed to develop high-speed downhole motors suitable for
drilling with high speed bits in the harsh downhole drilling
environment. The Oil Program has a drilling program that is currently
focused mainly on microhole drilling and applications. However, the area
of high speed bit development is progressing steadily, and it was
recognized that a suitable downhole motor will be necessary to fully
develop the capabilities of the high speed bits in multiple
applications. Current long-term research efforts are looking for
solutions to drilling in deep wells and hard rock. High speed drilling
holds the potential to reduce drilling costs and produce a smaller
environmental footprint. The need for a downhole motor to operate with
these bits will be required in the near future. It is anticipated these
bits and motors will be employed in directional, slimhole and coiled
tubing drilled wells. The drilling program will look to enhance this
developing area of research. Area 1 will accept drilling program
applications with a minimum 20% applicant cost share for research and
development of the motor.

**Area 2 -- Advanced Diagnostics and Imaging Technology**

Area 2 is comprised of three separate technical topics: (A) Subsurface
Imaging; (B) Regional Study and Basin Analysis; (C) Reservoir
Characterization and Management.

The Advanced Diagnostics and Imaging Systems (ADIS) Program is an
integral part of the DOE/FE mission and strategy. ADIS is directed
toward cross-cutting interdisciplinary research to develop advanced and
innovative technologies applied to the incremental recovery of the
estimated 160 billion barrels of existing and undiscovered technically
recoverable oil from onshore, and offshore waters of the United States
(USGS, 1995, MMS, 1996).

Uncertainty concerning the physical and chemical nature of oil
reservoirs is one of the most severe technological barriers to
increasing the economic oil recovery from existing and undiscovered
fields. Oil reservoirs are composed of a wide variety of architectural
heterogeneities (i.e. rock facies geometry, diagenetic alterations,
fracturing, stratigraphic and structural setting). Porosity, relative
permeability, pore and pore throat morphology, capillary forces,
miscibility and saturation variations (oil-gas brine plus other
displacing fluid/gas compositions, rock-fluid, fluid-gas and fluid-fluid
interactions) also contribute to technical recovery barriers. Several of
these variables often change between like reservoirs within a single
geologic play and change due to temporal and spatial dynamic alterations
that occur within a reservoir throughout the exploitation and recovery
processes.

The ADIS section of this solicitation is to support research designed to
quantify the interrelationship of the reservoir rock architecture,
fluid-rock, fluid-gas, and fluid-fluid interactions that to impact oil
productibility from petroleum reservoirs. Research efforts should target
geologic formations and associated oil reservoirs within United States
basins. Multidisciplinary teaming and active involvement by oil
producers and /or service companies, with interests in the application
of research results for more efficient recovery of larger volumes of oil
from fields within the geologic formations and basin studied, is
strongly encouraged. Results of these research and technology
developments shall be aggressively transferred to the public and private
industry thus allowing for informed decisions related to cost-effective
reservoir management and exploitation of like oil reservoirs within the
productive formations studied.

**Area 3 \-- Reservoir Efficiency Processes**

Area 3 is comprised of six separate technical topics: (A) Chemical
Flooding; (B) Microbial Flooding; (C) Heavy Oil Recovery; (D) Novel
Processes; (E) Reservoir Simulation; and (F) Gas Flooding.

Fossil fuels will likely remain the principal energy sources for most of
the world, including the United States, well into the middle of the
century. The program shall expand the knowledge base which, with
industry, can bring efficient, economically competitive, and
environmentally acceptable new fossil energy resources and technology
options into the marketplace and improve the United States national
security by reducing dependence on imported oil. As an integral part of
FE mission and strategy, production research is directed toward the
development of advanced and innovative technologies for recovering oil
from large, currently unrecoverable petroleum resources.

As an integral part of FE mission and strategy, the extraction research
of oil is directed toward the development of advanced and innovative
technologies for recovering oil from large, currently unrecoverable,
petroleum resources. Primary and secondary recovery operations have been
utilized for many years to extract oil from reservoirs

With continually diminishing United States crude production and
increasing dependency on foreign supplies, there is a need to develop
oil production from these domestic oil resources. Advanced Recovery
Concepts will play a significant role in the exploitation of these
domestic resources. New techniques to overcome the problems associated
with advanced recovery are needed in order to meet the energy demands of
the immediate future. The importance of increasing the petroleum
reserves of the United States through the production of oil left in
petroleum reservoirs after conventional recovery techniques are used is
well known and well documented.

**1.3 [SOLICITATION OBJECTIVES ]{.underline}**
[]{#__RefHeading___Toc54672523 .anchor}

The primary mission of the DOE National Oil Program, implemented through
the NPTO is to conduct oil related research for exploration and
development activities. The objective of this solicitation is to receive
applications for cost-shared midterm research and development projects
for the increased recovery of oil in the United States. The projects
selected will add to the technological base by increasing production
efficiency, improving predictive models and reservoir management
planning, and by developing techniques for discovering oil in complex
trapping systems.

The efforts will support the President's "Clear Skies" initiatives by
answering questions surrounding the increased use of CO~2~ for enhanced
oil recovery, allowing more CO~2~ to be injected into geologic
formations. Reducing drill costs, improving reservoir descriptive
capabilities, and maximizing the utility of simulation models and
theoretical approaches will support overall resource optimization and
carbon management goals. The results will have benefits beyond the CO2
efforts as well, by improving the industry performance and extending the
life of producing fields.

The three solicitation Areas of Interest are described below. Two of the
areas of interest have been divided into separate topical areas. Each
[research application shall address a specific technical topic within a
particular Area of Interest]{.underline}. **If you wish to submit an
application for more than one topic, then separate applications are
required. [NOTE: An application which contains more than a single topic
will be rejected.]{.underline}**

**DE-PS26-04NT15450-1**

**Objective for Area of Interest 1 -- Drilling Technology for High
Speed**

> **Downhole Motors**

There is only one technical topic in Area 1. Applications in Area 1 must
be for projects designed to develop high-speed downhole motors suitable
for drilling with high speed bits in the harsh downhole drilling
environment. Current technology in the area of high-speed bits is
progressing. The need for a downhole motor to operate these bits will be
required in the near future. It is anticipated these bits and motors
will be employed in directional, slimhole and coiled tubing drilled
wells. The downhole motors may be positive displacement, turbine or
other suitable style. The motors are expected to rotate at a minimum of
10,000 rpm, have an OD no larger than 7 inches and work downhole
continuously for at least 100 hours. The motor must have common oilfield
thread connections capable of making up to a drill bit and bottomhole
assembly. The motor must be capable of transmitting drilling fluid
through the motor. The motor may be powered hydraulically, pneumatically
or electrically. Area 1 will accept drilling program applications with a
minimum 20% applicant cost share for research and development of the
motor. If possible, the work proposed should include bench scale testing
and field tests. Technology transfer of the research and development
program results will be required.

**ObjectiveS for Area of Interest 2 -- Advanced Diagnostics and
Imaging**

Applications submitted under Area 2 must target one of three specific
technical topics shown below. A minimum 20% cost share is required for
any Area 2 application.

This section of the solicitation is intended to provide the applicant
with the maximum opportunity to develop the research statement of
project objectives (SOPO), associated tasks and subtasks with
appropriate staging of milestones and deliverables, to suit the subject
area and the state of knowledge and development in that area. Proposed
research should demonstrate a coupling between theoretical,
experimental, computational and resultant applicability. To address the
proposed research in this manner will require opening communication
between various disciplines focusing on similar problems. This research
may supplement and complement, but not duplicate or displace, private or
the public R & D efforts. This solicitation does not seek applications
which duplicate current research or offer only minor improvements in
ongoing research in the area proposed.

***Technical Topics for Advanced Diagnostic and Imaging Systems \--*
Applications must target only one of the following three technical
topics;**

**DE-PS26-04NT15450-2A *Subsurface Imaging:***

The technology is needed to increase accuracy and resolution of seismic
and other geological and geophysical methods. New methodology is
solicited for data acquisition, processing, interpretation and
integration of multiple technology, and data sets into refined geologic
and engineering models that guide discovery of new oil reserve, oil
field development and management for maximum economic oil recovery
seismic methods.

**DE-PS26-04NT15450-2B *Regional Study and Basin Analysis:***

Research efforts are solicited for finding new oil reserve in the
country. The efforts may be focused to develop innovative geologic
system models and exploration concepts for analysis of United States
basins for new and overlooked fairways (Field to basin scales). The
potential is focused on the development and application of new
geoscientific and engineering concepts in high oil/gas potential basins.
Project efforts may lead to a detailed geological understanding from the
basement upward of the regional structural, stratigraphic, diagenetic,
maturation, migration and trapping framework. Basins may be identified
and prioritized by the potential for additional recoverable oil reserve
through recent USGS regional evaluation.

**DE-PS26-04NT15450-2C *Reservoir Characterization and Management:***

There is a need to characterize reservoir rock and associated
heterogeneities at various scales, using a combination of various
measuring technologies, and to quantify how characteristics at the
different scales impact fluid movement in oil reservoirs. The derivation
of reservoir engineering parameters through studies using modern
technologies has applicability in the development of scale-up procedure
for multi-fluid flow in reservoirs.

Additional research is needed in Wettability and Imbibition. Wetting
films of fluids that preferentially contact mineral grains in a
multi-fluid system have a significant effect on the fluid flow rate
through reservoir rock. Research in acquiring the imbibition data that
is a part of the capillary pressure curve and the application of theses
information to the improvement of oil recovery from reservoir rock under
multiphase systems needs additional efforts. There is a need for further
investigation into the relationships between reservoir rock
pore-structure and multiphase relative permeability functions. The
better understanding is needed to study the physical and chemical
processes that influence fluid behavior at the pore level, and
incorporate them into the functional relative permeability relationship.

Modeling high resolution quantitative descriptions of petroleum
reservoirs requires the integration of wide variety of static and
dynamic data sets. In order to predict flow performance, reservoir
models need be conditioned to dynamic data which may require solution of
inverse problems. Research work is encouraged for reconciling and
synthesizing dynamic data sets into high-resolution models.

**ObjectiveS for Area of Interest 3 -- Reservoir Efficiency Processes**

NETL seeks research applications on innovative technologies that will
substantially increase predictability and improve oil extraction.

Applications submitted under Area 3 must target one of six specific
technical topics (shown below). A minimum 20% cost share is required for
any Area 3 application.

**The Reservoir Efficiency Processes Research Area of Interest has 6
topics: (A) Chemical Flooding; (B) Microbial Flooding; (C) Heavy Oil
Recovery; (D) Novel Processes; (E) Reservoir Simulation; and (F) Gas
Flooding.**

In part, this solicitation is designed to identify research
opportunities and conduct research (and transfer the results of such
research to the user community) in the extraction of domestic petroleum
resources. With continually diminishing United States crude production
and increasing dependency on foreign supplies, there is a need to
develop oil production from these domestic oil resources. Oil recovery
concepts will play a significant role in the exploitation of these
domestic resources. New techniques to overcome the problems associated
with oil recovery are needed in order to meet the energy demands of the
immediate future. The importance of increasing the petroleum reserves of
the United States through the production of oil left in petroleum
reservoirs after conventional recovery techniques are used is well known
and well documented.

This section of this solicitation is intended to provide a proponent
with maximum opportunity in structuring the research tasks in a research
plan with appropriate milestones and a statement of project objectives
(SOPO) that will suit the subject area and the state of knowledge or
development in that area. Where a multi-phase research program is
envisioned, the proponent must define the various stages in each phase,
and the technical criteria for determining successful completion of each
stage before advancing to subsequent stages.

It is anticipated that experimental research tasks in the selected
research areas of interest, as a minimum, will achieve:

-   Development or improvement of the cost effectiveness of, chemical
    flooding, microbial methods, heavy oil recovery methods, novel
    processes, reservoir simulation and gas flooding

-   Development or improvement of laboratory scale
    experiments/measurements and/or theoretical studies of gas flooding
    processes, chemical flooding processes, microbial flooding
    processes, heavy oil recovery processes, novel processes, and
    process simulation in pertinent areas such as heterogeneity, oil
    recovery, new oil recovery methods for light and heavy oil via
    physical experiments, and/or mathematical modeling applicable to
    reservoir/process simulation

-   Collection and reduction of experimental or analytical data showing
    the performance, effectiveness, and significance of the laboratory
    and theoretical results, and

-   Preparation and delivery of technical reports (semi-annual, annual,
    final) showing the results of the project, including details of all
    relevant performance characteristics and techniques by which they
    were determined/calculated. Detailed specification of performance
    characteristics, their technical significance in Oil Recovery
    systems, their potential economic significance, and the
    recommendations for further research shall be documented.

-   Demonstration of a technology transfer component. The technology
    transfer plan should include ongoing activity throughout the life of
    the project. Describe steps to ensure results of the project are
    disseminated at appropriate venues. Although publishing papers is an
    important part of the process, there must be an aggressive effort to
    ensure the message is received by those most likely to benefit from
    the research.

***Technical Topics for Reservoir Efficiency Processes \--* Applications
must target only one of the following six technical topics;**

**DE-PS26-04NT15450-3A *Chemical Flooding:***

Many industrial chemical flooding research groups have been greatly
reduced or eliminated entirely due to oil prices and corporate
restructuring. The knowledge gained by these research groups is usually
proprietary in nature and normally not available to the private sector.
Due to the high potential of chemical flooding to both large and small
producers, DOE supports the continuation of this research to maintain a
state-of-the-art presence in chemical flooding.

Applications are sought for developing low cost surfactants for use in
surfactant flooding (surfactant-polymer, micellar-polymer, low tension
flooding, alkaline-surfactant-flooding). Surfactant flooding involves
injection of a chemical that is partially oil-soluble and partially
water-soluble. These molecules migrate to the oil-brine interface and
lower interfacial tension between the reservoir oil and water. This
minimizes capillary forces and mobilizes oil that would otherwise be
trapped by the reservoir water. The factors necessary to reduce
adsorption of surfactant on reservoir rock and/or interaction with
divalent ions has been clarified. However, the factors that affect low
interfacial tension do not coincide with those that affect low
adsorption. Some guidelines have been established for balancing these
competing factors and emphasizing the favorable molecular structure of
the surfactant. The potential for treatment of the reservoir
(preflushing, wettability alteration, etc.) has been addressed, but this
area needs further research.

Applications are sought for the development of low cost polymers for use
in polymer flooding (Polymer, Gels, Sweep Improvement, Profile
Modification, Reservoir Conformance). Polymer flooding is an augmented
water flood that uses synthetic or biologically produced polymers to
thicken the injected water and increase its viscosity relative to that
of the reservoir fluids, thereby improving recovery efficiency. The
intended improvement in sweep efficiency is due to restriction of higher
permeability channels by the polymer solution. This directs the
injectant into previously unswept zones and improves mobility control.
Areal sweep can be improved by upgrading mobility control. Volumetric
sweep can be improved by fluid diversion techniques that effectively
reduce macro-heterogeneities of the reservoir. Polymers may also be used
to improve reservoir conformance and sweep efficiency. The concept is to
control the injection and produced fluids in such a manner that the oil
production is enhanced. Therefore, if the oil saturation is low in a
particular area of the reservoir, it would be advantageous to have the
oil recovery process not enter that region but rather into a region
having higher oil saturation. Polymer gels are currently being used to
improve conformance and profile modification.

**DE-PS26-04NT15450-3B *Microbial Flooding:***

Microbial flooding methods have a high potential for recovering oil.
These methods hold promise as an application for independent oil
producers. Microbial methods have been used in environmental cleanup
projects, however, like surfactant flooding (micellar-polymer) methods,
have not been used on a large scale for oil recovery. Increased research
is needed if these methods are to make a major contribution to oil
recovery. Methods of using microbes to make cost-effective surfactants
or finding microbes, which can be used to produce oil must be found to
make microbial flooding methods more attractive to the oil producer.
Microbial techniques consist of injecting microbes or activating in-situ
microbes into the reservoir, thereby generating surfactants, gas, or
polymers, which will increase the oil recovery. For example, microbial
methods which can generate low cost surfactants or polymers at the
surface, especially from waste products, are acceptable areas of
research.

**Note that the use of microbial techniques for the reduction of an
environmental problem is [NOT ACCEPTABLE IN THIS SECTION OF THE
SOLICITATION]{.underline} unless it relates directly to oil recovery,
however, such microbial techniques may be acceptable in other areas of
the solicitation.**

**DE-PS26-04NT15450-3C *Heavy Oil Recovery:***

The term "heavy oil" for the purposes of this solicitation is defined as
10^o\ -^ 20^o^ API (1000 - 943 kg/m^3^) inclusive at 60^o^ F (15.6^o^
C), and having a gas-free viscosity of 100 - 10,000 centipoise (Mpa\*s)
inclusive at original reservoir temperature. Alaska's heavy oil reserves
may be up to 37 billion barrels of oil. The fragile artic tundra is
supported by permafrost, which provides the base for oil field
operations. Solutions to the technical issues are needed, which take
into account the Alaskan environment and lead to the economic
development of Alaska's heavy oil reserves.

Heavy oil recovery processes include: steamflooding, cyclic steam
injection, in situ combustion, fire flooding, low temperature oxidation,
high temperature oxidation, air injection, microwave heating methods,
and oxygen rich air injection. All of these methods suffer from poor
sweep of the reservoir.

Heavy oil recovery methods focused on the unique problems associated
with Alaska's heavy oil which will be considered for this section of
this PRDA are: 1) the use of foams or other additives which will improve
the sweep during steam injection or steam flooding, 2) advances in the
application of other heavy oil recovery methods, such as, in situ
combustion, fire flooding, low temperature oxidation, high temperature
oxidation, oxygen enriched air injection, and 3) the use of these
processes in conjunction with horizontal wells will also be an area of
consideration.

Teaming among universities and the oil industry are encouraged.

**DE-PS26-04NT15450-3D *Novel Processes:***

Novel Processes will be considered that are identified as new methods
for extracting oil from known reservoirs and which will increase
ultimate oil recovery. These processes are those which do not fit into
the areas of Chemical Flooding; Microbial Flooding; Heavy Oil Recovery;
Reservoir Simulation; or Gas Flooding. It is important to note that the
Novel Processes area does **NOT** include equipment development or
improvements on current equipment, facilities or production techniques.

**DE-PS26-04NT15450-3E *Reservoir Simulation:***

Applications are solicited to develop new or to make major extensions to
\"mainframe, computer cluster, or supercomputer\" simulators by using
new methods, parallel computational methods, or other viable techniques.
Simulators which would modify or improve the application of the above
oil recovery processes to horizontal wells, slant wells and
multi-gridding is also an acceptable area of simulation research.

It is important to note that the simulator source code, executable
files, and appropriate manuals will be required to be made available to
the public through DOE publications.

**DE-PS26-04NT15450-3F *Gas Flooding:***

The recovery efficiency using carbon dioxide in oil reservoirs is low.
The recovery from these floods may be from 10-20% of the oil-in-place.
Also, the carbon dioxide utilization rate, the amount of carbon dioxide
injected to recover a barrel of oil, is high. This utilization rate is
usually expressed in thousands of standard cubic feet of carbon dioxide
per barrel of oil (MCF/BBL). These utilization rates vary between 3-12
MCF/BBL with about 7 MCF/BBL being typical. A significant amount of the
low recovery efficiency and the high carbon dioxide utilization rate can
be attributed to the high mobility, i.e., low viscosity, of the carbon
dioxide that affects the sweep efficiency. Also, the need to maintain
the reservoir pressure above the carbon dioxide minimum miscibility
pressure (MMP) places severe constraints on applying carbon dioxide
flooding to shallow reservoirs. These barriers must be overcome for gas
flooding, especially miscible carbon dioxide flooding, to reach full
implementation potential.

One of the major challenges to improving the oil recovery from gas
flooding is to reduce the amount of oil bypassed due to the poor sweep
of carbon dioxide, N~2~ or flue gas. Past work on mobility control for
carbon dioxide flooding using foams, polymers and direct thickeners has
shown promise, but has not yielded a widely accepted method. The
improvement in sweep for gas floods remains a major challenge.

[**SECTION II - CONDITIONS AND NOTICES**]{.underline}

**2.1 [APPLICANT ELIGIBILITY (MAY 2001)]{.underline}**

Any nonprofit or for-profit organization, university or other
institution of higher education, or non-federal agency or entity is
eligible to apply, unless otherwise restricted by the Simpson-Craig
Amendment which is defined as follows:

Organizations which are described in section 501(c)(4) of the Internal
Revenue Code of 1986 and engage in lobbying activities after December
31, 1995, shall not be eligible for the receipt of Federal Funds
constituting an award, grant, or loan. Section 501(c) (4) of the
Internal Revenue Code of 1986 covers:

> "Civic leagues or organizations not organized for profit but operated
> exclusively for the promotion of social welfare, or local associations
> of employees, the membership of which is limited to the employees of a
> designated person or persons in a particular municipality, and the net
> earnings of which re devoted exclusively to charitable, educational or
> recreational purposes."

Lobbying activities are defined broadly to include, among other things,
contacts on behalf of an organization with specified employees of the
Executive Branch and Congress with regard to Federal legislative,
regulatory and program administrative matters.

Applicants that are seeking financial assistance under this solicitation
are subject to the eligibility requirements of Section 2306 of the
Energy Policy Act of 1992 (EPAct).

In accordance with 10 CFR 600.502, a company shall be eligible to
receive an award of financial assistance under a covered program only if
DOE finds that-

\(a\) Consistent with Sec. 600.503, the company\'s participation in a
covered program would be in the economic interest of the United States;
and

\(b\) The company is either-

\(1\) A United States-owned company; or

> \(2\) Incorporated or organized under the laws of any State and has a
> parent company which is incorporated or organized under the laws of a
> country which-

\(i\) Affords to the United States-owned companies opportunities,
comparable to those afforded to any other company, to participate in any
joint venture similar to those authorized under the Act;

\(ii\) Affords to United States-owned companies local investment
opportunities comparable to those afforded to any other company; and

\(iii\) Affords adequate and effective protection for the intellectual
property rights of United States-owned companies.

**2.2 [TYPE OF AWARD INSTRUMENT - COOPERATIVE AGREEMENTS (OCT
2003)]{.underline}**

DOE anticipates awarding cooperative agreements under this Program
Announcement. A special award condition describing the Government\'s
substantial involvement will be incorporated into the resulting
cooperative agreements. A sample of this special award condition can be
found in the Model Financial Assistance Agreement at
<http://www.netl.doe.gov/business/faapiaf/MODEL.pdf>.

**2.3 [EXPECTED NUMBER OF AWARDS (OCT 2003)]{.underline}**

It is anticipated that there will be approximately fifteen (15) to
twenty-two (22) awards resulting from this solicitation. However, the
Government reserves the right to fund, in whole or in part, any, all, or
none of the applications submitted in response to this solicitation and
will award that number of financial assistance instruments which serves
the public purpose and is in the best interest of the Government.

The table below depicts DOE's estimate of the projected number of awards
to be made in each Area of Interest, as well as the maximum DOE funding
per project. All applicants must propose a minimum of 20% cost share of
the total project value.

  ------------------- ------------------------ --------------------------
  Area of Interest    Projected Number of      **Maximum** DOE Funding
                      Awards                   per Project\*\*

  1                   1-2                      \$800,000

  2                   6-10                     \$800,000

  3                   8-10                     \$800,000
  ------------------- ------------------------ --------------------------

**\*\*Applications which exceed the maximum DOE funding shown above will
be rejected (reference Section IV, Clause 4.1).**

**2.4 [COST SHARING REQUIREMENTS (DEC 1999)]{.underline}**

In accordance with 10 CFR 600.30, the DOE has determined that a minimum
non-Federal cost share of 20% of the **total** project value\* (**NOT**
20% of the DOE share) will be required. Cost sharing must meet the
requirements of 10 CFR 600.123 and 10 CFR 600.224. Allowable costs for
cost sharing shall be in accordance with 10 CFR 600.127 and 10 CFR
600.222. Previous R&D and existing data will not be considered for
satisfying the required cost share.

\*Total Project Value = DOE share + Applicant cost share

**2.5** **[ESTIMATED FUNDING (OCT 2003)]{.underline}**

Approximately twelve million dollars (\$12,000,000) is expected to be
available for new awards under this announcement. It is anticipated that
six million dollars (\$6,000,000) will be available during Fiscal Year
2004.

**2.6 [PERIOD OF PERFORMANCE (OCT 2003)]{.underline}**

DOE anticipates making awards that will run for no more than three (3)
years in duration. Awards will have project and budget periods that are
specific to the project and funding.

**2.7 [REPORTING REQUIREMENTS (FEB 2001)]{.underline}**

The Reporting Requirements identified in the model financial assistance
agreement located at
[http://www.netl.doe.gov/business/faapiaf/MODEL.PDF](http://www.netl.doe.gov/business/faapiaf/MODEL.PDF )
are required to be submitted during performance of the award.

**2.8 [Application Due Date (OCT 2003)]{.underline}**

Applications and amendments of applications **must be received by
FEBRUARY 10, 2004, not later than 8:00 PM Eastern Time.** You are
encouraged to transmit your application well before the deadline.

APPLICATIONS, INCLUDING APPLICATION FILES, RECEIVED AFTER THE DEADLINE,
AS DEMONSTRATED BY THE IIPS DATE/TIME STAMP WILL NOT BE REVIEWED OR
CONSIDERED FOR AWARD.

**2.9 [DUNS NUMBER (OCT 2003)]{.underline}**

All applicants, except individuals who would personally receive an award
under this announcement apart from any business or non-profit
organization they may operate, must include a Dun and Bradstreet (D&B)
Data Universal Numbering System (DUNS) number in their application. For
the purpose of this requirement, the applicant is the entity that meets
the eligibility criteria and has the legal authority to apply for an
award. For example, a consortium formed to apply for an award must
obtain a DUNS number for that consortium. For assistance in obtaining a
DUNS number at no cost to you, call the DUNS Number request line at 1
866-705-5711. Be prepared to provide the following information: 1)
Organization name; 2) Address; 3) Local telephone number; 4) Name of the
CEO/business owner; 5) Legal structure of the business (corporation,
partnership, etc); 6) Year the organization started; 7) Primary line of
business; 8) Total number of employees (full and part time). If you do
not already have a DUNS number, you should obtain one as soon as you
decide to submit an application.

**2.10 [PROGRAM AREAS OF INTEREST (OCT 2003)]{.underline}**

This funding opportunity notice contains three program Areas of Interest
identified in the solicitation objectives. Applicants are cautioned that
this funding opportunity announcement is a Master Announcement and that
each program Area of Interest has its own program-specific funding
opportunity number or each Area of Interest has Technical Topics with
program-specific funding opportunity numbers for submission of
applications. For example, Program Area of Interest 1, Drilling
Technology for High Speed Downhole Motors has a funding opportunity
number of DE-PS26-04NT15450-1. Applications [cannot be
submitted]{.underline} under the Master Announcement.

Applicants should submit their application under the program area which
best fits the majority of the effort to be performed. If an application
is submitted under a program area of interest in which the DOE believes
fits more appropriately in another program area of interest, the
applicant will be directed to resubmit under the appropriate area of
interest. Do not submit an identical application under more than one
Area of Interest.

**2.11 [MORE THAN ONE APPLICATION (JAN 2003)]{.underline}**
[]{#__RefHeading___Toc54672530 .anchor}

You may submit more than one application. Each application must have its
own unique title on the subject line (i.e., project title and principal
investigator/project director, if any). For each application, you must
first click on "Create Application" and then complete the information
requested.

**2.12 [ANTICIPATED ANNOUNCEMENT AND AWARD DATES (OCT
2003)]{.underline}**

DOE anticipates notifying applicants selected for award during the third
quarter of Fiscal Year 2004 and making awards by September 30, 2004.

**2.13 [CONTENT OF RESULTING AWARD (NOV 2000)]{.underline}**
[]{#__RefHeading___Toc54672531 .anchor}

Any agreement awarded as a result of this solicitation will contain the
applicable terms and conditions found in the Model Financial Assistance
Agreement located at the NETL Website located at:

> <http://www.netl.doe.gov/business/faapiaf/MODEL.PDF>

Blank areas appearing in the model agreement indicated by "\[ \]" will
be completed after negotiations.

**2.14 [APPLICATION PREPARATION COSTS (DEC 1999)]{.underline}**
[]{#__RefHeading___Toc54672532 .anchor}

This solicitation does not obligate the Government to pay any costs
incurred in the preparation and submission of applications or in making
necessary studies or designs for the preparation thereof or to acquire,
or contract for any services.

**2.15 [COMMITMENT OF PUBLIC FUNDS (OCT 2003)]{.underline}**

The Contracting Officer is the only individual who can make awards or
commit the Government to the expenditure of public funds. A commitment
by other than the Contracting Officer, either explicit or implied, is
invalid.

**2.16 [FALSE STATEMENTS (AUG 1999)]{.underline}**
[]{#__RefHeading___Toc54672534 .anchor}

Applications must set forth full, accurate, and complete information as
required by this solicitation. The penalty for making false statements
in applications is prescribed in 18 U.S.C. 1001.

**2.17 [CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER (CFDA) (DEC
2000)]{.underline}** []{#__RefHeading___Toc54672535 .anchor}

> 81.089 Fossil Energy Research and Development FE

The Applicant shall put this CFDA number in Block 10 of the Standard
Form 424, Application for Federal Assistance.

**2.18 [PARTICIPATION BY FEDERAL ORGANIZATIONS OR FEDERALLY AFFILIATED
ORGANIZATIONS (JAN 2003)]{.underline}** []{#__RefHeading___Toc54672536
.anchor}

Applications submitted by, or on behalf of: (1) a Federal agency; (2) a
Federally Funded Research and Development Center (FFRDC), or (3) a
Department of Energy (DOE) Management and Operating (M&O) contractor
will not be eligible for an award under this solicitation. However,
these organizations may be proposed as team members subject to the
following guidelines.

a\. For DOE M&O contractors, the proposed use of such entity must be
authorized in writing by the DOE Contracting Officer or authorized
designee responsible for managing the M&O Contractor. The applicant must
also provide any additional submission requirements identified in
Section 3-Application Preparation Instructions of this solicitation. The
DOE Contracting Officer responsible for managing the M&O Contractor must
determine that performance by the M&O contractor: (1) is consistent with
or complementary to DOE missions and the missions of the facility to
which the work is to be assigned; (2) will not adversely impact
execution of assigned programs of the facility; (3) will not place the
facility in direct competition with the domestic private sector; and (4)
will not create a detrimental future burden on DOE resources. DOE will
make award to the applicant for the applicant\'s portion of the effort.
For the M&O effort, DOE shall fund the work, in whole or in part,
through a DOE field work proposal to the M&O contractor. If DOE funds a
portion of the M&O effort, then the Recipient is responsible for funding
the remaining portion of the effort through a Cooperative Research &
Development Agreement (CRADA) or a service agreement utilizing their own
funds.

b\. For FFRDC contractors (other than a DOE M&O contractor), the
proposed use of such entity must be consistent with the FFRDC\'s
authority under its contract with the cognizant Federal agency and such
work must not place the FFRDC in direct competition with the private
sector. DOE shall fund the FFRDC work through an interagency agreement
with the cognizant Federal agency.

c\. For Federal agencies, the proposed effort must not place the agency
in direct competition with the private sector. DOE shall fund the other
agency work through an interagency agreement.

d\. An applicant\'s cost sharing requirement shall be based on the total
cost of the project, including the applicant\'s and the Federal agency,
FFRDC and M&O\'s portions of the effort.

e\. The estimated total cost of the Federal agency, FFRDC or M&O
contractor(s) work, in the aggregate, shall not exceed twenty-five (25%)
percent of the total estimated project cost.

**2.19 [DETERMINATION OF RESPONSIBILITY (JAN 2001)]{.underline}**
[]{#__RefHeading___Toc54672537 .anchor}

DOE will evaluate the potential Recipient's responsibility before award.
Responsibility determinations are focused on the Recipient's capability
to manage and account for the funds, property and other assets provided
and to perform satisfactorily under the terms of the award. If a
potential Recipient is determined to not be in compliance or cannot or
will not comply with generally applicable requirements (see 10 CFR Part
600, Appendix A), the contracting officer will find the Recipient not
responsible and may either disapprove the application or use special
restrictive conditions as a term of award.

**2.20 [EVALUATION BY NON-FEDERAL REVIEWERS (OCT 2003)]{.underline}**

In conducting the merit review evaluation, the Government plans to use
qualified non Federal personnel (e.g., DOE management and operating
contractors, universities personnel, or other scientific/technical
experts) as reviewers or advisors. The applicant, by submitting its
application, consents to the use of non-Federal reviewers. Non-Federal
reviewers will be required to sign a Conflict-of-Interest/Non-Disclosure
Certificate prior to reviewing any application.

**2.21 [APPLICATION CLARIFICATION (JULY 1999)]{.underline}**
[]{#__RefHeading___Toc54672538 .anchor}

DOE reserves the right to require applications to be clarified or
supplemented to the extent considered necessary either through
additional written submissions or oral presentations.

**2.22 [APPLICATION ACCEPTANCE PERIOD (AUG 1999)]{.underline}**

The minimum application acceptance period shall be 180 calendar days
after the deadline for receipt of applications.

**2.23 [GOVERNMENT RIGHT TO REJECT OR NEGOTIATE (OCT
2003)]{.underline}**

DOE reserves the right, without qualification, to reject any or all
applications received in response to this announcement and to select any
application, in whole or in part, as a basis for negotiation and/or
award.

**2.24 [INTERGOVERNMENTAL REVIEW (OCT 2003)]{.underline}**

This program is not subject to Executive Order 12372,
\"Intergovernmental Review of Federal Programs."

**2.25 [LOANS NOT AVAILABLE (JULY 1999)]{.underline}**
[]{#__RefHeading___Toc54672541 .anchor}

Loans are not available under the DOE Minority Economic Impact (MEI)
loan program, 10 CFR Part 800, to finance the cost of preparing a
financial assistance application.

**2.26 [52.227-6 ROYALTY INFORMATION. (APR 1984)]{.underline}**
[]{#__RefHeading___Toc54672542 .anchor}

\(a\) ***Cost or charges for royalties***. When the response to this
solicitation contains costs or charges for royalties totaling more than
\$250, the following information shall be included in the response
relating to each separate item of royalty or license fee:

\(1\) Name and address of licensor.

\(2\) Date of license agreement.

> \(3\) Patent numbers, patent application serial numbers, or other
> basis on which the royalty is payable.
>
> \(4\) Brief description, including any part or model numbers of each
> contract item or component on which the royalty is payable.

\(5\) Percentage or dollar rate of royalty per unit.

\(6\) Unit price of contract item.

\(7\) Number of units.

\(8\) Total dollar amount of royalties.

\(b\) ***Copies of current licenses***. In addition, if specifically
requested by the Contracting Officer before execution of the contract,
the offeror shall furnish a copy of the current license agreement and an
identification of applicable claims of specific patents.

**2.27 [952.227-84 NOTICE OF RIGHT TO REQUEST PATENT WAIVER. (FEB
1998)]{.underline}** []{#__RefHeading___Toc54672543 .anchor}

Offerors have the right to request a waiver of all or any part of the
rights of the United States in inventions conceived or first actually
reduced to practice in performance of the contract that may be awarded
as a result of this solicitation, in advance of or within 30 days after
the effective date of contracting. Even where such advance waiver is not
requested or the request is denied, the contractor will have a
continuing right under the contract to request a waiver of the rights of
the United States in identified inventions, i.e., individual inventions
conceived or first actually reduced to practice in performance of the
contract. Domestic small businesses and domestic nonprofit organizations
normally will receive the patent rights clause at DEAR 952.227-11 which
permits the contractor to retain title to such inventions, except under
contracts for management or operation of a Government-owned research and
development facility or under contracts involving exceptional
circumstances or intelligence activities. Therefore, small businesses
and nonprofit organizations normally need not request a waiver. See the
patent rights clause in the draft agreement in this solicitation. See
DOE\'s patent waiver regulations at 10 CFR Part 784.

**2.28 [PERFORMANCE OF WORK IN THE UNITED STATES (FEB
2001)]{.underline}** []{#__RefHeading___Toc54672544 .anchor}

As a condition of award under this solicitation, applicants must agree
that at least 75% of the direct labor cost for the project (including
subcontractor labor) will be incurred in the United States unless the
applicant can demonstrate to the satisfaction of the DOE that the United
States economic interest will be better served through a greater
percentage of work performed outside the United States. For example, an
Applicant may provide evidence that expertise to develop a technology
exists only outside the United States, but that ultimate
commercialization of the technology will result in substantial benefits
to the United States such as improved electricity reliability, increased
employment, increased exports of U.S.-manufactured products, etc.

**2.29 [Notice Regarding Eligible/Ineligible Activities (AUG
1999)]{.underline}**

Eligible activities under this program include those which describe and
promote the understanding of scientific and technical aspects of
specific energy technologies, but not those which encourage or support
political activities such as the collection and dissemination of
information related to potential, planned or pending legislation.

**2.30 [Locate Solicitation, Join Mailing List, Submit Questions,
View]{.underline}**

**[Amendments or Questions and Answers (SEPT 2003)]{.underline}**

If you would like to receive notifications related to this specific
solicitation, submit questions on the content of the solicitation, or
view amendments or questions and answers, you should locate this
solicitation, and then follow the appropriate directions:

LOCATE SOLICITATION:

• Go to the IIPS website at http://e-center.doe.gov and click on
\"Browse Opportunities\", or login in if you are registered.

• Click on any of the options for viewing the solicitation (whichever is
easiest for you to locate this solicitation).

• Click on \"Enter IIPS\".

• Locate and click on the solicitation number to view the \"Solicitation
Form\".

• Click on hyperlink under \"File Attachments\" or \"URL Links\" to
access the full solicitation or program notice.

JOIN SOLICITATION MAILING LIST.

Click on the \"Join Solicitation Mailing List\" button at the left of
the page, enter the required information, and submit. After you have
joined the list, you should receive an email when a solicitation message
is posted. Even though you have joined the mailing list, you should
visit the solicitation page periodically to ensure that you have the
latest information.

VIEW AMENDMENTS.

Click on the yellow folder or arrow next to the solicitation number to
view amendments and solicitation messages; or follow directions for
\"Locate Solicitation\" to view a conformed copy of the solicitation (a
line in the margin annotates changed sections).

SUBMIT QUESTION ON THE CONTENT OF THE SOLICITATION.

Click on the \"Submit Question\" button at the left of the page and
enter required information. You will receive an electronic notification
that your question has been answered. DOE will try to respond to a
question within 5 days, unless a similar question and answer have
already been posted on the website.

VIEW QUESTIONS AND ANSWERS.

Click on the \"View Questions\" button at the left of the page. If no
questions have been submitted and answered, a statement to that effect
will appear at the top of the page. You should periodically check the
IIPS website for new questions and answers.

[**SECTION III - APPLICATION PREPARATION AND SUBMISSION
REQUIREMENTS**]{.underline}

**3.1 [APPLICATION PREPARATION INSTRUCTIONS (OCT 2003)]{.underline}**

Applicants must include the following files in their E-Application. For
consistency, the applicant is instructed to use the file names specified
below. Application files are to be formatted in the following software
application: Word; therefore filename extensions shall all be xxx.doc.

[MANDATORY FILES]{.underline} [FILENAME]{.underline}

Application APPLICATION.doc

Budget BUDGET.doc

Budget Justification BUDGET JUSTIFICATION.doc

Project Summary/Abstract PROJECT SUMMARY.doc

Project Narrative PROJECT NARRATIVE.doc

Certifications/Assurances/Representations CERTIFICATIONS.doc

[ADDITIONAL FILES]{.underline}

Attachment 1 Resumes of Key Personnel RESUMES.doc

**APPLICATION FILE**

Applicants must complete a SF 424 application form. Save this form as a
Word file, named \"APPLICATION.doc.\" The SF 424, is available on the
NETL homepage at:

<http://www.netl.doe.gov/business/faapiaf/app-files.html>

**BUDGET FILE**

Applicants must complete a DOE F 4600.4 for each year of support
requested and a cumulative budget for the total project period. The DOE
F 4600.4 is available on the NETL homepage at:

<http://www.netl.doe.gov/business/faapiaf/app-files.html>

You may request funds under any of the categories listed as long as the
item and amount are necessary to perform the proposed work and are not
precluded by the cost principles or program funding restrictions. Save
these budget forms in a single Word file, named \"BUDGET.doc.\"

**BUDGET JUSTIFICATION FILE**

Justify proposed direct labor, travel, consultants, large subawards,
large or unique \"other direct costs\", equipment, etc. For subawards,
identify organization name, description of the scope of work, name of
the project leader, and estimated total costs. The contracting officer
may request a more detailed budget for a particular subaward, if your
application is selected. Provide an explanation of the source, nature,
amount and availability of any proposed cost sharing. Save this
information in a Word file, named \"BUDGET JUSTIFICATION.doc."

The following budget detail is required. Failure to provide the detailed
cost information as described in the instructions will result in an
incomplete application. If a minimum cost share is required by this
solicitation, the applicant shall stipulate in the application the
source and amount of cost sharing and the value of third party in-kind
contributions proposed to meet the requirement. Additionally teaming
members and subcontractors are also required to submit the below
information with their budgets.

> PERSONNEL \-- In support of the proposed personnel costs, provide a
> supplemental schedule that identifies the labor hours, labor rates,
> and cost by labor classification for each budget year. Also indicate
> the basis of the labor classification, number of hours, and labor
> rates. An example of the basis for the labor classification and number
> of hours could be past experience, engineering estimate, etc. An
> example of the basis for the labor rates could be actual rates for the
> individuals who will perform the work or an average labor rate for the
> labor classification or a departmental average rate.
>
> FRINGE BENEFITS \-- Provide the method used to calculate the proposed
> rate amount. If a fringe benefit has been negotiated with, or approved
> by, a Federal Government agency, provide a copy of the agreement. If
> no rate agreement exists, provide a detailed list of the fringe
> benefit expenses (e.g., payroll taxes, insurances, holiday and
> vacation pay, bonuses) and their associated costs. Identify the base
> for allocating these fringe benefit expenses.
>
> Travel \-- For each proposed trip, provide the purpose, number of
> travelers, travel origin and destination, number of days, and a
> breakdown of costs for airfare, lodging, meals, car rental, and
> incidentals. The basis for the airfare, lodging, meals, car rental,
> and incidentals must be provided, such as past trips, current
> quotations, Federal Travel Regulations, etc.
>
> EQUIPMENT \-- Provide an itemized list of each piece of equipment, its
> unit costs, and the basis for estimating the cost, for example, vendor
> quotes, catalog prices, prior invoices, etc.
>
> SUPPLIES \-- Provide an itemized list of supplies; identify the
> quantity of each item, its unit cost, and the basis for estimating the
> cost, for example, vendor quotes, catalog prices, prior invoices, etc.
>
> CONTRACTUAL
>
> Consultants \-- Provide the hourly or daily rate along with the basis
> for the rate. Furnish resumes or similar information regarding
> qualifications or experience. Provide at least two invoices reflecting
> hourly or daily rates charged to customers other than the Government.
> A statement signed by the consultant certifying his or her
> availability and salary must be provided. If travel or incidental
> expenses are to be charged, give the basis for these costs.
>
> Subcontractors \-- Identify each planned subcontractor and its total
> proposed budget. Each subcontractor\'s budget and supporting detail
> should be included as part of the Applicant\'s budget narrative. In
> addition, the Applicant shall provide the following information for
> each planned subcontract: a brief description of the work to be
> subcontracted; the number of quotes solicited and received; the cost
> or price analysis performed by the Applicant; names and addresses of
> the subcontractors tentatively selected and the basis for their
> selection; i.e. low bidder, delivery schedule, technical competence;
> type of contract and estimated cost and fee or profit; and,
> affiliation with the Applicant, if any.
>
> CONSTRUCTION \-- Provide detail of construction costs, if applicable.
>
> OTHER DIRECT COSTS \-- Provide an itemized list with costs for any
> other item proposed as a direct cost and state the basis for each
> proposed item.
>
> INDIRECT COSTS \-- If indirect rates have been negotiated with or
> approved by a Federal Government agency, please provide a copy of the
> latest rate agreement. If you do not have a current rate agreement,
> submit an indirect cost rate proposal which includes the major base
> and pool expense groupings by line item and dollar amount. In either
> case, provide a breakdown of the proposed indirect costs for each of
> your accounting periods included in the proposal. Identify the rate
> and allocation base for each indirect cost, such as Overhead, General
> and Administrative, Facilities Capital Cost of Money, etc.
>
> COST SHARING \-- Identify the percentage level and source of cost
> sharing for the proposed project. Firm funding commitments are
> expected and documentation of those commitments must be included in
> the application. Additionally, the impact of DOE\'s cost share to the
> viability of the project must be addressed, to include justification
> for the need for Federal Funds.
>
> NOTE: The **[total project cost]{.underline}** (i.e. sum of Applicant
> and other participants plus DOE cost shares) must be reflected in each
> budget form.
>
> A detailed estimate of the cash value (basis of and the nature, e.g.,
> equipment, labor, facilities, cash, etc.) of all contributions to the
> project by each participant must be provided. Note that
> \"cost-sharing\" is not limited to cash investment. In-kind
> contributions (e.g., contribution of services or property; donated
> equipment, buildings, or land; donated supplies; or unrecovered
> indirect costs) incurred as part of the project may be considered as
> all or part of the cost share. The \"cost-sharing\" definition is
> contained in 10 CFR 600.30, 600.101, 600.123, 600.224, 600.302, 600.
> 313 and OMB Circular A-110.

Fee or profit will not be paid to the recipients of financial assistance
awards. Additionally, foregone fee or profit by the Applicant shall not
be considered cost sharing under any resulting award. Reimbursement of
actual costs will only include those costs that are allowable and
allocable to the project as determined in accordance with the applicable
cost principles prescribed in 10 CFR 600.127, 10 CFR 600.312 or 10 CFR
600.318.

**PROJECT SUMMARY/ABSTRACT**

The project summary/abstract must contain a summary of the proposed
activity suitable for publication. It should be a self- contained
document that identifies the name of the applicant, the principal
investigator/project director, the project title, the objectives of the
project, methods to be employed, the potential impact of the project
(i.e., benefits, out comes), and participants (for collaborative
projects). It should be informative to other persons working in the same
or related fields and, insofar as possible, understandable to a
scientifically or technically literate lay reader. This document must
not include any proprietary or sensitive business information as the
Department may make it available to the public. The project summary
abstract must not exceed 1 page. The format for submission of this
Project Summary can be found at
<http://www.netl.doe.gov/business/faapiaf/app-files.html>. Save this
information in a Word file, named \"Project Summary.doc.\"

**PROJECT NARRATIVE FILE**

This file shall include a cover page indicating the solicitation number,
name and address of the Applicant, point of contact, telephone/FAX
number/E-Mail address, title of project, and date of application.

The project narrative file must be formatted to separately address each
of the sections listed below. It is requested that the project narrative
not exceed 50 pages, double spaced, 1\" margins (top, bottom, left,
right), and when printed will fit on size 8 ½\" by 11\" paper. The type
must be legible and not smaller than 12 point standard font. Evaluators
will review only the number of pages specified.

Unnecessarily elaborate applications are not desired. Elaborate art
work, graphics and pictures will increase the document file size. If the
project narrative file size is over 5MB, we request that you use a
\"Zip\" file compression software, such as WinZip software, to reduce
the time needed to download the file.

This file should provide a clear description of the work to be
undertaken and how you plan to accomplish it. It must be formatted to
address each of the merit review criterion and sub-criterion listed in
Section V. Provide sufficient information so that the reviewers will be
able to evaluate the application in accordance with these merit review
criteria.

DOE WILL EVALUATE AND CONSIDER ONLY THOSE APPLICATIONS THAT ADDRESS
SEPARATELY EACH OF THE MERIT REVIEW CRITERION AND SUB-CRITERION.

**The project narrative section must not exceed 50 pages.** Graphics and
visual material, including charts, graphs, maps, photographs, and other
pictorial presentations, will be counted in the page limitation for this
section.

The project narrative will consist of the Applicant\'s outline
addressing the technical and management aspects of the project, the
Applicant\'s capabilities and what the Applicant will do to satisfy the
requirements of this funding announcement. Since the technical
information contained in this section will be evaluated to determine
such matters as understanding of the work to be performed, technical
approach, and potential for completing the desired work, it should be
specific and complete in every detail. The project narrative should be
practical and be prepared simply and economically, providing a
straightforward, concise delineation of what it is the Applicant will do
to satisfy the requirements of this funding announcement.

To help facilitate the review process and to insure maximum
consideration under each of the four (4) evaluation criteria, the
applicant should review the following criteria when preparing the
project narrative and must provide ALL of the specified information
listed below. This format relates to the technical evaluation criteria
found in Section IV, and the weight assigned to each of the four (4)
evaluation criteria is shown in parentheses. It should be noted that all
Criterion are identical for Area 1, Area 2, and Area 3.

**Criterion 1 --Evidence of Technical Merit and Readiness: (40 points)**

-   Demonstrate knowledge of the problem for which a solution would be
    of benefit to the oil industry and show how this project will
    further the goals of the Department of Energy's Oil Program.

-   Provide a brief summary of the state of the art in the proposed
    technology.

-   Describe the goals of the work and support the selected approach.
    Identify the benefits to industry.

-   Describe the approach and identify significant milestones and/or
    decision points.

-   Identify the innovative or revolutionary nature of the proposed work
    over existing technology and identify the specific technical hurdles
    that must be overcome to achieve success. Identify the measures of
    success.

-   Identify all readiness issues that will affect the start up of the
    project.

-   Identify the existing data to be used in the project and any data to
    be acquired.

**Criterion 2 -- Statement of Project Objectives (SOPO) (10 points)**

The SOPO will be evaluated to determine if the proposed activities and
timing will clearly and logically lead to accomplishment of the stated
goals of the project and to ensure that all project activities are
properly coordinated and scheduled for timely completion of the project.

-   Provide a reasonable and logical sequence of the tasks under the
    SOPO format identified below.

**Criterion 3 -- Management, Organization, Key Personnel, facilities and
Equipment (40 points)**

-   Clearly identify the organizational structure and partnering. Show
    all subcontractors in the structure.

-   Qualify the selection of the proposing organization and all
    subcontractors. Describe the qualifications of the participants and
    describe their past performance in the proposed technology area.

-   Identify the key personnel on the project and their task
    assignments. Provide their qualifications and relevant experience in
    summary form. Provide resumes in Attachment 1.

-   Provide a work and labor distribution that would be suitable to
    accomplish the project.

-   Identify the proposed travel and objectives of the travel.

-   Identify the type, quality and availability of equipment and
    resources necessary to the project.

-   Identify any equipment to be purchased or acquired and justify the
    acquisition.

**Criterion 4 -- Technology Transfer Plan (10 points)**

-   In exchange for co-funding these research and development projects,
    DOE is seeking an aggressive exchange and dissemination of all
    project activities to the industry.

-   Provide a plan for transferring to the Exploration and Production
    Community, the knowledge, methodology, data and techniques developed
    throughout the project performance.

-   Identify the target audience and the targeted approach.

**STATEMENT OF PROJECT OBJECTIVES (SOPO)**

The Department of Energy\'s, National Energy Technology Laboratory uses
a specific format for Statement of Project Objectives in its awards. In
solicitations such as this one, where the Government does not provide a
Statement of Project Objectives, the Applicant is to provide one, which
the DOE will then use to generate the Statement of Project Objectives to
be included in the award.

The project narrative must contain a single, detailed Statement of
Project Objectives that addresses how the project objectives will be
met. The Statement of Project Objectives must contain a clear, concise
description of all activities to be completed during project performance
and follow the structure discussed below. The Statement of Project
Objectives may be released to the public by DOE in whole or in part at
any time. It is therefore required that it shall not contain proprietary
or confidential business information.

DOE believes a thorough, concise project narrative and Statement of
Project Objectives can be prepared within a **50 page limit**. The
Statement of Project Objectives **shall not exceed 10 pages.**
Applications that contain a narrative in excess of the 50 page limit,
shall, without compelling justification, receive a significant weakness
under the technical evaluation criteria of the solicitation. Applicants
shall prepare the Statement of Project Objectives in the following
format:

TITLE OF WORK TO BE PERFORMED

(Insert the title of work to be performed. Be concise and descriptive.)

A. OBJECTIVES

Include one paragraph on the overall objective(s) of the work. Also,
include objective(s) for each phase of the work.

B. SCOPE OF WORK

This section should not exceed one-half page and should summarize the
effort and approach to achieve the objective(s) of the work for each
Phase.

C. TASKS TO BE PERFORMED

Tasks, concisely written, should be provided in a logical sequence and
should be divided into the phases of the project. This section provides
a brief summary of the planned approach to this project.

BUDGET PERIOD 1/PHASE 1 (note: Projects in all Areas will have one
Budget Period)

Task 1.0 - (Title)

(Description)

Subtask 1.1 (Optional)

(Description)

Task 2.0 - (Title)

(Description)

Subtask 2.1 (Optional)

(Description)

Note: Continue numbering for additional Tasks.

D. DELIVERABLES

The periodic, topical, and final reports shall be submitted in
accordance with the attached "Federal Assistance Reporting Checklist"
and the instructions accompanying the checklist.

Note: The Recipient shall provide a list of deliverables other than
those identified on the "Federal Assistance Reporting Checklist" that
will be delivered. These reports shall also be identified within the
text of the Statement of Project Objectives. See the following examples:

1\. Task 1.1 - (Report Description)

2\. Task 2.2 - (Report Description)

E. BRIEFINGS/TECHNICAL PRESENTATIONS (If applicable)

The Recipient shall prepare detailed briefings for an annual
presentation to the COR at the COR\'s facility. Briefings shall be given
by the Recipient as needed to explain the plans, progress, and results
of the technical effort. The Recipient shall provide and present a
technical paper(s) at the DOE/NETL Annual Contractor\'s Review Meeting
to be held at a NETL facility.

**CERTIFICATIONS/ASSURANCES/REPRESENTATIONS FILE**

Applicants must complete the DOE
certification/assurances/representations information. Save this
information in a single Word file named \"CERTIFICATIONS.doc." The
certifications/assurances/representations are available on the NETL
homepage at:

<http://www.netl.doe.gov/business/faapiaf/app-files.html>

This program is covered by the Energy Policy Act (EPACT) of 1992. If an
applicant is a for-profit organization, the applicant must complete the
certifications/assurances/representations form set with the EPACT
Representation and provide the appropriate EPACT Representation, i.e.,
EPACT Representation for Awards Under \$100,000 or EPACT Representation
for Awards of \$100,000 or more. Other applicants must complete the form
set without the EPACT Representation.

**ATTACHMENT 1 \-- RESUMES OF KEY PERSONNEL (FILENAME -- RESUMES.doc)**

Provide Resumes for each individual identified as key personnel for this
project.

**3.2 [ALLOWABLE /UNALLOWABLE PROJECT COSTS FOR COST SHARING
]{.underline}**

Allowable and allocable direct and indirect project costs shall be
determined by the Federal Cost Principles applicable to the award. In
addition to these cost principles, the guidelines contained in this
Article shall be utilized by the DOE to determine allowable and
allocable project costs, as well as to determine that portion of
allowable and allocable project costs considered appropriate for cost
sharing purposes.

All project costs should be calculated and proposed in a manner which is
both cost effective and consistent with standard commercial practices in
the industry.

For determining whether costs are allowable or unallowable for this
award, as provided in Sections (A) and (B) below, an \"existing
facility\" includes all downhole hardware (e.g. casing, tubing, packers,
pumps, etc.) and all supporting surface facilities (e.g. power lines,
surface separation tanks, pumping units, and/or ancillary supporting
facilities) dedicated to performance of the proposed project and in
existence at the project site at the time of application submission.

\(A\) [ALLOWABLE PROJECT COSTS FOR COST SHARING]{.underline}

DOE shall share in the following allowable project costs:

> 1\. [EXISTING FACILITY]{.underline}
>
> \(a\) [ALLOWABLE OPERATING COSTS]{.underline}
>
> If the cost of operation at an existing facility is increased as a
> direct result of the proposed project, only the additional operating
> cost associated with the incremental activity caused by the project
> will be allowable for cost sharing purposes (e.g. additional labor,
> additional electricity, additional services, etc.).
>
> The baseline upon which to calculate additional incremental operating
> costs at an existing facility will be the average activity level
> occurring during the one year period immediately prior to the date of
> application submission.
>
> \(b\) [ALLOWABLE CAPITAL COSTS]{.underline}
>
> [Modifications]{.underline}
>
> The cost of modifications to an existing facility will only be
> allowable for cost sharing purposes where it is determined such
> modifications are specifically required in order to perform an
> incremental activity associated with the proposed project.
>
> [New Equipment]{.underline}
>
> For newly purchased equipment required to perform an incremental
> project activity, the acquisition cost of such equipment shall be
> allowed as a project cost.
>
> [Existing Equipment]{.underline}
>
> For existing equipment (i.e. equipment falling under the possession
> and control of the applicant which is not dedicated to the project nor
> located at the project site) required in order to perform an
> incremental project activity, a fair market value shall be allowed as
> a project cost. The fair market value shall be calculated based upon a
> reasonable industry accepted method such as independently secured
> appraisals, competitive bids, recent and related sales histories,
> and/or published prices appearing in industry trade catalogs and/or
> publications.
>
> [Repair or Replacement]{.underline}
>
> The cost of repairing or replacing existing equipment located at an
> existing facility shall only be allowed for project cost sharing
> purposes where the repair or replacement is required to perform an
> incremental activity necessitated by the project (e.g. the need to
> recomplete a well in preparation for or during project performance,
> the need to replace or repair damaged tubing in preparation for or
> during project performance, etc.).
>
> 2\. [NEW FACILITY]{.underline}
>
> All costs of drilling, completion, construction and operation of new
> wells and surface facilities necessary for the project are allowable
> for cost sharing purposes.
>
> 3\. [SHUT-IN WELLS]{.underline}
>
> The costs of re-opening, operating, and making equipment modifications
> to a shut-in well will be considered allowable for project cost
> sharing purposes only where the shut-in well meets one of the
> following conditions:
>
> \(1\) The well must not have been in operation at any time during the
> one year period immediately preceding the application submission date;
> or
>
> \(2\) The well must have had its tubing pulled and its casing plugged
> prior to the application submission date.

\(B\) [UNALLOWABLE PROJECT COSTS FOR COST SHARING]{.underline}

> 1\. [EXISTING FACILITY]{.underline}
>
> Neither the cost nor value of an existing facility is eligible for
> cost sharing under this program.
>
> 2\. [DIRECT COSTS OF NEGOTIATIONS]{.underline}
>
> Costs incurred in negotiating a Cooperative Agreement with DOE are not
> allowable as direct charges to the project.
>
> 3\. [BASIS FOR DEPRECIATION]{.underline}
>
> DOE shall not accept valuation for property sold, transferred,
> exchanged, or manipulated in any way to acquire a new basis for
> depreciation purposes or to establish a fair use value in
> circumstances which would amount to a transaction for the purpose of
> the Cooperative Agreement.
>
> 4\. [DIRECT COST VS. DEPRECIATION]{.underline}
>
> DOE will not share in both the direct cost and depreciation on the
> same item. Depreciation is not allowable for cost sharing on any item
> previously charged to the project as a direct cost. For example, DOE
> will cost share the direct cost on equipment or facilities purchased
> or constructed for the project but will not also cost share the
> depreciation.
>
> 5\. [INTEREST AND FINANCING COSTS]{.underline}
>
> Interest on borrowings (however represented) and other financial costs
> such as bond discounts, cost of financing and refinancing capital (net
> worth plus long-term liabilities), are unallowable project costs and
> will not be cost shared. This includes interest on funds borrowed for
> construction.
>
> 6\. [FACILITIES CAPITAL COST OF MONEY]{.underline}
>
> Facilities capital cost of money shall be an unallowable cost on all
> real property or equipment acquired by or on behalf of the Participant
> in connection with the performance of the project.
>
> 7\. [RESEARCH, DEVELOPMENT OR EXPLORATION COSTS]{.underline}
>
> Previously expended research, development, or exploration costs are
> not cost sharing for the purposes of this solicitation.
>
> 8\. [FORGONE FEE, PROFIT OR REVENUE]{.underline}
>
> Forgone fees, forgone profits, or forgone revenues are not allowable
> costs. Such costs shall not, therefore, qualify as cost sharing, nor
> will DOE pay any portion of such costs.
>
> 9\. [FEE OR PROFIT]{.underline}
>
> Fee or profit will not be paid to any member of the proposing team
> having a substantial interest in the project. Competitive subcontracts
> (e.g., routine supplies, equipment, etc.) placed with the prior
> written consent of the Contracting Officer and subcontracts for
> routine supplies and services are not covered by this prohibition.
>
> 10\. [VALUATION OF PATENTS AND PROPRIETARY DATA]{.underline}
>
> Patents and proprietary data will not be valued in determining the
> Participant\'s cost share in the project.
>
> 11\. [PAST, PRESENT OR FUTURE FEDERAL GOVERNMENT
> CONTRACTS]{.underline}
>
> Allowable costs under past, present or future Federal Government
> contracts, cooperative agreements or grants may not be charged against
> this Cooperative Agreement. Likewise, the Participant may not charge
> costs allowable under this project, including any portion of its cost
> share to the Federal Government under any other contracts, cooperative
> agreements, of grants.
>
> 12\. [DEPLETION ALLOWANCE]{.underline}
>
> Depletion allowance is not an allowable project cost.
>
> 13\. [BUSINESS LOSSES]{.underline}

Business losses are not an allowable project cost.

**3.3 [OTHER SUBMISSION REQUIREMENTS (OCT 2003)]{.underline}**

ELECTRONIC SUBMISSION

Applications must be submitted through the DOE Industry Interactive
Procurement System (IIPS) at
[http://e-center.doe.gov](http://e-center.doe.gov/). Instructions on how
to submit an application or an application amendment and how to
register, submit questions, and view questions and answers are located
on the web site at http://e-center.doe.gov, click on the \"Help\"
button. Click here for Frequently Asked Questions.

Prepare all the required files in accordance with the instructions in
this announcement prior to starting the transmission process. Submit the
entire application package in one IIPS session (i.e., do not logoff
before all the files are submitted).

When you are ready to submit your application, go to
[http://e-center.doe.gov](http://e-center.doe.gov/) and complete the
IIPS cover page. Enter the project title and the principal
investigator/project director, if any, in the \"Subject\" block. Then
attach each file in the corresponding block in accordance with the IIPS
guidance. Follow the instructions for submitting the application.

If you have any problems accessing information or submitting your
application, contact the Help Desk at 1 800-683-0751 and select option
1, or send an email to HelpDesk@pr.doe.gov. **ONLY APPLICATIONS
SUBMITTED THROUGH IIPS WILL BE CONSIDERED FOR AWARD.**

ELECTRONIC SIGNATURE

Applications submitted through IIPS constitute submission of
electronically signed applications. The name of the authorized
organizational representative (i.e., the administrative official, who,
on behalf of the proposing organization, is authorized to make
certifications and assurances or to commit the applicant to the conduct
of a project) must be typed in the signature block on the form to be
accepted as an electronic signature. Do not submit a scanned copy of the
signed document.

IIPS REGISTRATION

In order to submit an application, you must be authorized by the
applicant (i.e., institution or business entity) to submit an
application on its behalf and you must register in IIPS. You are
encouraged to register as soon as possible. You only have to register
once to apply for any DOE award. To register go to
[http://e-center.gov](http://e-center.gov/) and follow the registration
instructions.

**3.4 [REVISIONS, DELETIONS, AND WITHDRAWAL OF APPLICATIONS (JAN
2003)]{.underline}** []{#__RefHeading___Toc54672547 .anchor}

REMOVE APPLICATION OR APPLICATION FILE(S) FROM IIPS

To delete or withdraw an application or an application file(s), send an
email to the IIPS Help Desk requesting the application or file(s), be
removed. Be sure to identify your user name, the applicant\'s name, and
the subject, as shown on the cover page of the application.

SUBMIT REVISED APPLICATION

Follow the steps in "Submit Application or Pre-application" to submit a
revised application (i.e. cover page and all required files).

SUBMIT REVISED FILE

After the Help Desk has removed the requested file from your
application:

• Locate the solicitation.

• Click on the yellow folder next to the solicitation number.

• Click on the cover page of your submission, click on the "Attach
Application" link, and attach the revised file. In the event that two
files, with identical names, are included in an application, the file
with the latest transmission date/time stamp will be considered for
review, if it is received prior to the deadline.

**3.5 [UNNECESSARILY ELABORATE APPLICATIONS AND FILE SIZE LIMITATIONS
(FEB 2003)]{.underline}** []{#__RefHeading___Toc54672548 .anchor}

Unnecessarily elaborate applications beyond those sufficient to present
a complete and effective response to this solicitation are not desired.
Elaborate artwork, graphics and pictures may increase the document\'s
file size. It is suggested that in preparing your application that you
create files less than 5 MB. However, this file size may not be
appropriate in all situations. As the nature of the application may
create large files, Applicants may wish to use "Zip" file compression
software such as WinZip. Using this compression software will diminish
the file size, thus reducing the time needed to upload and download an
application.

**3.6 [PROPRIETARY APPLICATION INFORMATION (OCT 2003)]{.underline}**

An application may include data, including trade secrets and/or
privileged or confidential commercial or financial information which the
applicant does not want disclosed to the public or used for any purpose
other than evaluation of the application (See 10 CFR 600.15). The use
and disclosure of such data may be restricted, provided the applicant
marks the cover sheet of the application with the following legend and
specifies the pages of the application which are to be restricted:

> \"The data contained in pages \[ \] of this application have been
> submitted in confidence and contain trade secrets or proprietary
> information, and such data shall be used or disclosed only for
> evaluation purposes, provided that if this applicant receives an award
> as a result of or in connection with the submission of this
> application, DOE shall have the right to use or disclose the data
> herein to the extent provided in the award. This restriction does not
> limit the government\'s right to use or disclose data obtained without
> restriction from any source, including the applicant.\"

To protect such data, each line or paragraph on the pages containing
such data must be specifically identified and marked with a legend
similar to the following:

\"Use or disclosure of the data set forth above is subject to the
restriction on the cover page of this application.\"

**3.7 [APPLICATION SUBMISSION REQUIREMENTS FOR PARTICIPATING DOE M&O
CONTRACTORS, NON-DOE FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS
(FFRDC\'S) OR FEDERAL AGENCIES (JAN 2003)]{.underline}**
[]{#__RefHeading___Toc54672550 .anchor}

In addition to the application information to be provided by the
applicant as set forth in other parts of this Section, the following
additional requirements are required if your application includes work
to be performed by a DOE M&O contractor, Non-DOE FFRDC, or Federal
agency:

JUSTIFICATION

For participation by a DOE M&O contractor, authorization is required
from the DOE Contracting Officer. The applicant must submit a document
from the DOE Contracting Officer or authorized designee stating that the
DOE M&O contractor is authorized to participate in the proposed work
effort.

For FFRDC contractors (other than DOE M&O contractors), the proposed use
of such entity must be consistent with the FFRDC authority under its
contract with the cognizant Federal agency and such work must not place
the FFRDC in direct competition with the private sector.

For Federal agencies, the proposed effort must not place the agency in
direct competition with the private sector. DOE will fund the other
agency work through an interagency agreement.

WORK-SCOPE

The application must provide a scope of work for the effort to be
performed by the applicant and a separate scope of work for the effort
to be performed by the DOE M&O contractor, FFRDC, or Federal agency. If
the applicant is teaming with a DOE M&O contractor, see DOE Order
412.1-Work Authorization System (http://www.directives.doe.gov/) for
further submission instructions regarding Field Work s, which is the
vehicle used to fund the DOE M&O contractor.

COST INFORMATION

In addition to the Application for Federal Assistance (SF 424), the
application must include a budget page with cost information for that
portion of the applicant\'s effort in the project and for the DOE M&O,
FFRDC or Federal agencies\' portion of the project. The cost information
should be submitted in the same format and level of detail as indicated
above for the purposes of evaluation. An applicant\'s cost sharing
requirement shall be based on the total cost of the project, including
the applicant, FFRDC, DOE M&O or Federal agencies\' portions of the
effort.

TEAMING AGREEMENT

Describe the managerial arrangement between the applicant and the DOE
M&O contractor, FFRDC or Federal agency.

DOE will review the application to determine that it meets these
criteria and reserves the right to reject any application that fails to
do so.

[**SECTION IV - EVALUATION AND SELECTION**]{.underline}

**4.1 [INITIAL REVIEW CRITERIA (OCT 2003)]{.underline}**

Prior to a comprehensive merit evaluation, DOE will perform an initial
review to determine that (1) the applicant is eligible for an award; (2)
the information required by the announcement has been submitted; (3) all
mandatory requirements are satisfied; and (4) the proposed project is
responsive to the objectives of the funding opportunity announcement.

**4.2 [MERIT REVIEW CRITERIA (OCT 2003)]{.underline}**

Applications submitted in response to this funding opportunity will be
evaluated and scored in accordance with the criteria and weights listed
below:

**Criterion 1 --Evidence of Technical Merit and Readiness: (40 points)**

-   How well did the applicant demonstrate knowledge of the problem for
    which a solution would be of benefit to the oil industry and show
    how this project will further the goals of the Department of
    Energy's Oil Program?

-   How well did the applicant demonstrate a significant understanding
    of the current technology state of the art in their summary?

-   Evaluate the adequacy of the approach, selection of tasks, and the
    proposed timeline and the degree that they support the goals of the
    project.

-   The degree to which the selected significant milestones and/or
    decision points are appropriate.

-   The significance of the work to industry will be evaluated.

-   The understanding of the challenges of the project.

-   How appropriate are the measures of success selected to evaluate the
    success or failure of a task? Evaluate the proposing organizations'
    readiness to start up the project.

-   How well does the applicant understand the data issues attached to a
    project and how likely will provided plans overcome the identified
    deficiencies in data?

**Criterion 2 -- Statement of Project Objectives (SOPO) (10 points)**

-   How well does the SOPO provide a reasonable and logical sequence of
    the tasks that will lead to the accomplishment of the stated goals
    of the project in a coordinated and timely manner?

**Criterion 3 -- Management, Organization, Key Personnel, facilities and
Equipment (40 points)**

-   Evaluation of the management structure with easily identified roles
    and responsibilities for each partner or subcontractor. What is the
    likelihood that the arrangement is sufficient to complete all tasks?

-   Evaluate the capabilities of the proposing organization and all
    partners or subcontractors. Evaluate the qualifications of the
    participants and rate their past performance in the proposed
    technology area.

-   Evaluation of the key personnel on the project and clearly
    identified task assignments. Evaluation of the applicants'
    qualifications and relevant experience suitable to the proposed
    work.

-   Evaluation of the work and labor distribution.

-   Evaluation of the proposed travel and objectives of the travel.

-   Evaluation of the type, quality and availability of equipment and
    resources necessary to the project.

-   How well did the applicant identify any equipment to be purchased or
    acquired and justify the acquisition? Evaluation of the need for the
    equipment. Evaluation of the applicants' readiness to start the
    project.

**Criterion 4 -- Technology Transfer Plan (10 points)**

-   Evaluation of the plan for transferring to the exploration and
    production community, the knowledge, methodology, data and
    techniques developed throughout the project performance.

-   How well did the applicant identify the target audience and choose a
    targeted approach?

**4.3 [OTHER SELECTION FACTORS (OCT 2003)]{.underline}**

These factors, while not indicators of the Application\'s merit, e.g.,
technical excellence, cost, Applicant\'s ability, etc., may be essential
to the process of selecting the application(s) that, individually or
collectively, will best achieve the program objectives. Such factors are
often beyond the control of the Applicant. Applicants should recognize
that some very good applications may not receive an award because they
do not fit within a mix of projects which maximizes the probability of
achieving the DOE\'s overall research and development objectives.
Therefore, the following Program Policy Factors may be used by the
Selection Official to assist in determining which of the ranked
application(s) shall receive DOE funding support.

1\. It is desirable to select for award a group of projects which
represents a diversity of technical approaches and methods that cover
each of the three Areas of Interest, including the multiple technical
topics under Area 2 and Area 3;

2\. It may be desirable to support complementary and/or duplicative
efforts or projects, which, when taken together, will best achieve the
research goals and objectives;

3\. It is desirable that different kinds and sizes of organizations be
selected for award in order to provide a balanced programmatic effort
and a variety of different technical perspectives; and

4\. It is desirable, because of the nature of the energy source, the
type of projects envisioned, or limitations of past efforts, to select
for award a group of projects with a broad or specific geographic
distribution.

The above factors will be independently considered by the Selection
Official in determining the optimum mix of applications that will be
selected for support. These policy factors will provide the Selection
Official with the capability of developing, from the competitive funding
opportunity, a broad involvement of organizations and organizational
ideas, which both enhance the overall technology research effort and
upgrade the program content to meet the goals of the DOE.

**4.4 [REVIEW AND SELECTION PROCESS (OCT 2003)]{.underline}**

A. MERIT REVIEW

Applications that pass the initial review will be subjected to a merit
review in accordance with the guidance provided in the \"Department of
Energy Merit Review Guide for Financial Assistance and Unsolicited
Proposals." This guide is available at
<http://professionals.pr.doe.gov/ma5/ma-5web.nsf/>? Open under Financial
Assistance, Regulations and Guidance.

B. SELECTION

The Selection Official will consider the merit review recommendation,
program policy factors, and the amount of funds available

C. DISCUSSIONS AND AWARD

The Government may enter into discussions with a selected applicant for
any reason deemed necessary, including but not limited to: (1) the
budget is not appropriate or reasonable for the requirement; (2) only a
portion of the application is selected for award; (3) the Government
needs additional information to determine that the Applicant is capable
of complying with the requirements in 10 CFR 600; and/or (4) special
terms and conditions are required. Failure to resolve satisfactorily the
issues identified by the Government will preclude award to the
applicant.