I 

114TH CONGRESS 

2D SESSION H. R. 5049 

To provide for improved management and oversight of major multi-user 

research facilities funded by the National Science Foundation, to ensure 

transparency and accountability of construction and management costs, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 26, 2016 

Mr. LOUDERMILK (for himself and Mr. SMITH of Texas) introduced the following bill; which was referred to the Committee on Science, Space, and 

Technology 

A BILL 

To provide for improved management and oversight of major 

multi-user research facilities funded by the National 

Science Foundation, to ensure transparency and accountability of construction and management costs, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘NSF Major Research 

5 Facility Reform Act of 2016’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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1 (1) DIRECTOR.—The term ‘‘Director’’ means 

2 the Director of the Foundation. 

3 (2) FOUNDATION.—The term ‘‘Foundation’’ 

4 means the National Science Foundation established 

5 under section 2 of the National Science Foundation 

6 Act of 1950 (42 U.S.C. 1861). 

7 SEC. 3. MANAGEMENT AND OVERSIGHT OF LARGE FACILI8 TIES. 

9 (a) LARGE FACILITIES OFFICE.—The Director shall 

10 maintain a Large Facilities Office. The functions of the 

11 Large Facilities Office shall be to support the research 

12 directorates in the development, implementation, and as13 sessment of major multi-user research facilities, including 

14 by— 

15 (1) serving as the Foundation’s primary re16 source for all policy or process issues related to the 

17 development and implementation of major multi-user 

18 research facilities; 

19 (2) serving as a Foundation-wide resource on 

20 project management, including providing expert as21 sistance on nonscientific and nontechnical aspects of 

22 project planning, budgeting, implementation, man23 agement, and oversight; 


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1 (3) coordinating and collaborating with research 

2 directorates to share best management practices and 

3 lessons learned from prior projects; and 

4 (4) assessing projects during preconstruction 

5 and construction phases for cost and schedule risk. 

6 (b) OVERSIGHT OF LARGE FACILITIES.—The Direc7 tor shall appoint a senior agency official whose primary 

8 responsibility is oversight of major multi-user research fa9 cilities. The duties of this official shall include— 

10 (1) oversight of the development, construction, 

11 and operation of major multi-user research facilities 

12 across the Foundation; 

13 (2) serving as a liaison to the National Science 

14 Board for approval and oversight of major multi15 user research facilities; and 

16 (3) periodically reviewing and updating as nec17 essary Foundation policies and guidelines for the de18 velopment and construction of major multi-user re19 search facilities. 

20 (c) POLICIES FOR LARGE FACILITY COSTS.— 

21 (1) IN GENERAL.—The Director shall ensure 

22 that the Foundation’s polices for developing and 

23 maintaining major multi-user research facility con24 struction costs are consistent with the best practices 

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1 ability Office Report GAO–09–3SP, or any successor 

2 report thereto, and the Uniform Guidance in 2 CFR 

3 part 200. 

4 (2) COST PROPOSAL AUDITS.— 

5 (A) GENERAL REQUIREMENT.—The Direc6 tor shall ensure that a cost proposal audit is 

7 conducted on any project with a total project 

8 cost over $100,000,000, in accordance with 

9 Government Auditing Standards as established 

10 in Government Accountability Office Report 

11 GAO–12–331G, or any successor report there12 to. 

13 (B) RESOLUTION OF ISSUES FOUND.—The 

14 Director, or a senior agency official within the 

15 Office of the Director designated by the Direc16 tor, shall certify in writing that all issues identi17 fied by the auditor, including any finding of un18 justified or questionable costs items, are re19 solved before the Foundation may execute a 

20 construction agreement with respect to the au21 dited project. 

22 (C) TRANSMITTAL TO CONGRESS.—The 

23 Director shall transmit each certification made 

24 under subparagraph (B) to the Committee on 

25 Science, Space, and Technology of the House of 


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1 Representatives, the Committee on Commerce, 

2 Science, and Transportation of the Senate, the 

3 Committee on Appropriations of the House of 

4 Representatives, and the Committee on Appro5 priations of the Senate. 

6 (3) INCURRED COST AUDITS.—The Director 

7 shall ensure that an incurred cost audit is conducted 

8 at least biennially on any project with a total project 

9 cost over $100,000,000, in accordance with Govern10 ment Auditing Standards as established in Govern11 ment Accountability Office Report GAO–12–331G, 

12 or any successor report thereto, with the first in13 curred cost audit to commence no later than 12 

14 months after execution of the construction agree15 ment. 

16 (4) CONTINGENCIES.— 

17 (A) IN GENERAL.—Except as provided for 

18 in subparagraph (C)(ii), the Foundation shall— 

19 (i) manage contingency in accordance 

20 with Cost Principles Uniform Guidance in 

21 2 CFR part 200.433, or any successor 

22 thereto, except as provided in this para23 graph; and 


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1 (ii) not make any award which pro2 vides for contributions to a contingency re3 serve held or managed by the awardee. 

4 (B) UPDATING POLICY MANUAL.—The 

5 Foundation shall update its NSF Grant Policy 

6 Manual and any other applicable guidance for 

7 contingencies on major multi-user research fa8 cilities with regard to estimating, monitoring, 

9 and accounting for contingency expenditures. 

10 (C) FOUNDATION REQUIREMENTS.—The 

11 policy updated under subparagraph (B) shall 

12 require that the Foundation— 

13 (i) may only include contingency 

14 amounts in an award in accordance with 

15 Cost Principles Uniform Guidance in 2 

16 CFR part 200.433, or any successor there17 to; and 

18 (ii) shall retain control over funds 

19 budgeted for contingency reserve, but may 

20 disburse budgeted contingency funds incre21 mentally to the awardee to ensure project 

22 stability and continuity. 

23 (D) AWARDEE REQUIREMENTS.—The pol24 icy updated under subparagraph (B) shall re25 quire that an awardee shall— 


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1 (i) provide verifiable cost data for any 

2 amounts proposed for contingencies; 

3 (ii) support requests for the release of 

4 contingency funds with evidence of a bona 

5 fide need and verifiable cost data to estab6 lish that the amounts sought are reason7 able, allocable, and allowable; and 

8 (iii) record and report all contingency 

9 expenditures to the Foundation. 

10 (E) CURRENT AWARDEES.—The Founda11 tion shall work with awardees for whom awards 

12 with contingency provisions have been made be13 fore the date of enactment of this Act— 

14 (i) to determine if any of their use of 

15 contingency funds represents out-of-scope 

16 changes for which Foundation’s prior writ17 ten approval was not obtained; and 

18 (ii) if out-of-scope changes are found, 

19 to identify any financial action that may be 

20 appropriate. 

21 (5) MANAGEMENT FEES.— 

22 (A) DEFINITION.—In this paragraph, the 

23 term ‘‘management fee’’ means a portion of an 

24 award made by the Foundation for the purpose 

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1 penses necessary to maintain operational sta2 bility which are not otherwise allowable under 

3 Cost Principles Uniform Guidance in 2 CFR 

4 part 200, Subpart E, or any successor regula5 tion thereto. 

6 (B) LIMITATION.—The Foundation may 

7 provide management fees under an award only 

8 if the awardee has demonstrated that it has 

9 limited or no other financial resources available 

10 for covering the expenses for which the manage11 ment fees are sought. 

12 (C) FINANCIAL INFORMATION.—The 

13 Foundation shall require award applicants to 

14 provide income and financial information cov15 ering a period of no less than 3 prior years (or 

16 in the case of an entity established less than 3 

17 years prior to the entity’s application date, the 

18 period beginning on the date of establishment 

19 and ending on the application date), including 

20 cash on hand and net asset information, in sup21 port of a request for management fees. The 

22 Foundation shall also require awardees to re23 port to the Foundation annually any sources of 

24 non-Federal funds received in excess of $50,000 

25 during the award period. 


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1 (D) EXPENSE REPORTING.—The Founda2 tion shall require awardees to track and report 

3 to the Foundation annually all expenses reim4 bursed or otherwise paid for with management 

5 fee funds, in accordance with Federal account6 ing practices as established in Government Ac7 countability Office Report GAO–12–331G, or 

8 any successor report thereto. 

9 (E) AUDITS.—The Inspector General of 

10 the Foundation may audit any Foundation 

11 award for compliance with this paragraph. 

12 (F) PROHIBITED USES.—An awardee may 

13 not use management fees for— 

14 (i) costs allowable under Cost Prin15 ciples Uniform Guidance in 2 CFR part 

16 200, Subpart E, or any successor regula17 tion thereto; 

18 (ii) alcoholic beverages; 

19 (iii) tickets to concerts, sporting, or 

20 other entertainment events; 

21 (iv) vacation or other travel for non22 business purposes; 

23 (v) charitable contributions, except for 

24 a charitable contribution of direct benefit 


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1 to the project or activity supported by the 

2 management fee; 

3 (vi) social or sporting club member4 ships; 

5 (vii) meals or entertainment for non6 business purposes; 

7 (viii) luxury or personal items; 

8 (ix) lobbying, as described in the Uni9 form Guidance at 2 CFR 200.450; or 

10 (x) any other purpose the Foundation 

11 determines is inappropriate. 

12 (G) REVIEW.—The Foundation shall re13 view management fee usage for each Founda14 tion award on at least an annual basis for com15 pliance with this paragraph and the Founda16 tion’s Large Facilities Manual. 

17 (6) REPORT.—Not later than 12 months after 

18 the date of enactment of this Act, the Director shall 

19 submit to Congress a report describing the Founda20 tion’s policies for developing and managing major 

21 multi-user research facility construction costs, in22 cluding a description of any aspects of the policies 

23 that diverge from the best practices recommended in 

24 Government Accountability Office Report GAO–09– 


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1 3SP, or any successor report thereto, and the Uni2 form Guidance in 2 CFR part 200. 

3 SEC. 4. WHISTLEBLOWER EDUCATION. 

4 (a) IN GENERAL.—The Foundation shall be subject 

5 to section 4712 of title 41, United States Code. 

6 (b) EDUCATION AND TRAINING.—The Foundation 

7 shall provide education and training for Foundation man8 agers and staff on the requirements of such section 4712, 

9 and provide information on such section to all awardees, 

10 contractors, and employees of such awardees and contrac11 tors. 

Æ 


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