SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Energy Small Business 
and Industry Partnership Enhancement Act of 1998''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) partnerships between contractor-operated facilities of 
        the Department of Energy and small businesses can enhance 
        growth of competitive small business opportunities;
            (2) the contractor-operated facilities represent a national 
        resource in science and technology;
            (3) capacity for innovation in the United States is 
        enhanced when the capabilities of the contractor-operated 
        facilities are engaged with other providers and users of the 
        Nation's science and technology base;
            (4) contributors to the Nation's science and technology 
        delivery system, Federal agencies, private industry, 
        universities, and the contractor-operated facilities can best 
        perform their missions through partnerships and interactions 
        that leverage the resources of each such entity;
            (5) interactions of the contractor-operated facilities with 
        industry and universities serve to--
                    (A) expand the technology base available for 
                missions of the Department of Energy; and
                    (B) instill sound business practices in the 
                contractor-operated facilities to enable cost-effective 
                realization of the Federal missions of the facilities;
            (6) the contractor-operated facilities benefit from 
        university interactions through access to leading edge research 
        and through recruitment of the talent needed to pursue the 
        missions of the facilities;
            (7) industry can improve products and processes leading to 
        an enhanced competitive position through simplified access to 
        the science and technology developed by the contractor-operated 
        facilities; and
            (8) other Federal agencies can advance their own missions 
        by using capabilities developed within the contractor-operated 
        facilities.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to improve the ability of small businesses, Federal 
        agencies, industry, and universities to work with the 
        contractor-operated facilities of the Department of Energy 
        while ensuring full cost recovery of each contractor-operated 
        facility's expenses incurred in such work;
            (2) to encourage the contractor-operated facilities to 
        expand their partnerships with universities and industries; and
            (3) to expand interactions of contractor-operated 
        facilities with small businesses so as to--
                    (A) encourage commercial evaluation and development 
                of the science and technology base of the contractor-
                operated facilities; and
                    (B) provide technical assistance to small 
                businesses.

SEC. 4. CONTRACT RESEARCH SERVICES.

    Section 31a. of the Atomic Energy Act of 1954 (42 U.S.C. 2051(a)) 
is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) areas of technology within the mission of the 
        Department of Energy as authorized by law.''.

SEC. 5. COST RECOVERY.

    Section 33 of the Atomic Energy Act of 1954 (42 U.S.C. 2053) is 
amended--
            (1) by striking ``Sec. 33. Research for Others.--Where'' 
        and inserting the following:

``SEC. 33. RESEARCH FOR OTHERS.

    ``(a) In General.--Where''; and
            (2) by striking the last sentence and inserting the 
        following:
    ``(b) Cost Recovery.--
            ``(1) In general.--In carrying out subsection (a), the 
        Secretary of Energy shall not recover more than the full cost 
        of work incurred at contractor-operated facilities of the 
        Department of Energy.
            ``(2) Administrative costs.--Any costs incurred by the 
        Department of Energy in connection with work performed by 
        contractor-operated facilities of the Department of Energy 
        shall be funded from departmental administration accounts of 
        the Department of Energy.
            ``(3) Charges.--For work performed for a person other than 
        the Department of Energy (including non-Federal entities and 
        Federal agencies other than the Department of Energy) (referred 
        to in this paragraph as an `external customer'), a contractor-
        operated facility may assess a charge in an amount that does 
        not exceed the sum of--
                    ``(A) the direct cost to the contractor in 
                performing the work for the external customer; and
                    ``(B) a pro rata share of overhead charges for 
                overhead-funded services directly required for 
                performance of the specific work for external customers 
                as a whole or to a category of external customers that 
                includes the external customer.''.

SEC. 6. PARTNERSHIPS WITH UNIVERSITIES AND INDUSTRY.

    (a) In General.--Chapter 4 of title I of the Atomic Energy Act of 
1954 (42 U.S.C. 2051 et seq.) is amended by adding at the end the 
following:

``SEC. 34. CONTRACTOR-OPERATED FACILITIES OF THE DEPARTMENT OF ENERGY.

    ``(a) Metrics.--
            ``(1) Definition of metrics.--In this subsection, the term 
        `metrics' means a system of measurements to determine levels of 
        specific areas of performance.
            ``(2) Inclusion in contracts.--Metrics--
                    ``(A) shall be developed jointly by the Secretary 
                of Energy and each contractor operating a facility of 
                the Department of Energy to ensure that realistic goals 
                are established that are directly supportive of the 
                mission and responsibilities of the contractor-operated 
                facility;
                    ``(B) shall be specified in the contract for 
                operation of the facility; and
                    ``(C) shall be used to evaluate the effectiveness 
                of partnership development by the facility.
    ``(b) Partnerships and Interactions.--
            ``(1) Encouragement of partnerships and interactions.--The 
        Secretary of Energy shall encourage partnerships and 
        interactions with universities and private industry at each 
        contractor-operated facility.
            ``(2) Component of performance evaluations.--The 
        development and expansion of partnerships and interactions with 
        universities and private industry shall be a component in 
        evaluating the annual performance of each contractor-operated 
        facility.
    ``(c) Small Business Technology Partnership Program.--
            ``(1) In general.--The Secretary of Energy shall require 
        that each contractor operating a facility of the Department of 
        Energy create a small business technology partnership program 
        at each contractor-operated facility.
            ``(2) Funding level.--A contractor may spend not more than 
        0.25 percent of the total operating budget of a contractor-
        operated facility on the program.
            ``(3) Evaluations.--The Secretary shall annually evaluate 
        the effectiveness of the program with each contractor to ensure 
        that the program is providing opportunities for small 
        businesses to interact with and use the resources of each 
        contractor-operated facility.
            ``(4) Use of funds.--Funds from the program--
                    ``(A) shall be used to cover a contractor-operated 
                facility's costs of interactions with small businesses; 
                and
                    ``(B) shall not be used for direct monetary grants 
                to small businesses.''.
    (b) Conforming Amendment.--The table of contents of the Atomic 
Energy Act of 1954 (42 U.S.C. prec. 2011) is amended by adding at the 
end of the items relating to chapter 4 of title I the following:

``Sec. 34. Contractor-operated facilities of the Department of 
                            Energy.''.
Department of Energy Small Business and Industry Partnership Enhancement Act of 1998 - Amends the Atomic Energy Act of 1954 to direct the Nuclear Regulatory Commission (NRC) to make arrangements for the conduct of technology research and development activities within the mission of the Department of Energy (DOE). 
Revises NRC authority to conduct research and development activities and studies for others in its own contractor-operated facilities where private facilities are inadequate for the purposes. Prohibits the Secretary of Energy, when conducting such activities for others, from recovering more than the full cost of work incurred at DOE contractor-operated facilities. 
Declares that any costs incurred by DOE in connection with work performed by contractor-operated DOE facilities shall be funded from DOE departmental administration accounts.  Prescribes guidelines for charges a DOE contractor-operated facility may assess for work performed for a non-DOE entity (external customer). 
Requires the Secretary and each contractor operating a DOE facility to develop jointly a system of measurements (metrics) to determine levels of specific areas of performance, which shall subsequently be specified in the contract for operation of a contractor-operated facility, and which shall be used to evaluate the effectiveness of the facility's partnership development. 
Instructs the Secretary to encourage partnerships and interactions with universities and private industry at each contractor-operated facility. 
Makes development and expansion of partnerships and interactions with universities and private industry a component in evaluating the annual performance of each contractor-operated facility. 
Requires each contractor operating a DOE facility to create a small business technology partnership program at each such facility. 
Requires the Secretary to evaluate program effectiveness annually with each contractor to ensure opportunities for small businesses to interact with and use the resources of each contractor-operated facility. 
Requires the use of program funds to cover a contractor-operated facility's costs of interactions with small businesses.  Prohibits the use of such funds for direct monetary grants to small businesses.
Department of Energy Small Business and Industry Partnership Enhancement Act of 1998