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 account-
ability of construction and management costs, and for 
other purposes. 
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6652
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘NSF Major Research 
Facility Reform Act of 2016’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) DIRECTOR.—The term ‘‘Director’’ means the 
Director of the Foundation. 
(2) 
FOUNDATION.—The 
term 
‘‘Foundation’’ 
means the National Science Foundation established 
under section 2 of the National Science Foundation 
Act of 1950 (42 U.S.C. 1861). 
(3) MAJOR MULTI-USER RESEARCH FACILITY.— 
The term ‘‘major multi-user research facility’’ means 
a science and engineering infrastructure construction 
project that exceeds the lesser of 10 percent of a Direc-
torate’s annual budget or $100,000,000 in total 
project cost that is funded in the major research 
equipment and facilities construction account, or any 
successor thereto. 
SEC. 3. MANAGEMENT AND OVERSIGHT OF LARGE FACILI-
TIES. 
(a) LARGE FACILITIES OFFICE.—The Director shall 
maintain a Large Facilities Office. The functions of the 
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6203
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS
Large Facilities Office shall be to support the research di-
rectorates in the development, implementation, and assess-
ment of major multi-user research facilities, including by— 
(1) serving as the Foundation’s primary resource 
for all policy or process issues related to the develop-
ment and implementation of major multi-user re-
search facilities; 
(2) serving as a Foundation-wide resource on 
project management, including providing expert as-
sistance on nonscientific and nontechnical aspects of 
project planning, budgeting, implementation, man-
agement, and oversight; 
(3) coordinating and collaborating with research 
directorates to share best management practices and 
lessons learned from prior projects; and 
(4) assessing projects during preconstruction and 
construction phases for cost and schedule risk. 
(b) OVERSIGHT OF LARGE FACILITIES.—The Director 
shall appoint a senior agency official as head of the Large 
Facilities Office whose responsibility is oversight of the de-
velopment, construction, and transfer to operations of major 
multi-user research facilities across the Foundation. 
(c) POLICIES FOR LARGE FACILITY COSTS.— 
(1) IN GENERAL.—The Director shall ensure that 
the Foundation’s polices for developing and main-
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6203
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS
taining major multi-user research facility construc-
tion costs are consistent with the best practices de-
scribed in the March 2009 Government Accountability 
Office Report GAO-09-3SP, or any successor report 
thereto, the Uniform Guidance in 2 C.F.R. part 200, 
and the Federal Acquisition Regulation as appro-
priate. 
(2) COST PROPOSAL ANALYSIS.— 
(A) GENERAL REQUIREMENT.—The Direc-
tor shall ensure that an external cost proposal 
analysis is conducted for any major multi-user 
research facility. 
(B) RESOLUTION OF ISSUES FOUND.—The 
Director, or a senior agency official within the 
Office of the Director designated by the Director, 
shall certify in writing that all issues identified 
during the cost analysis, including any findings 
of unjustified or questionable cost items, are re-
solved before the Foundation may execute a con-
struction agreement with respect to the project. 
(C) TRANSMITTAL TO CONGRESS.—The Di-
rector shall transmit each certification made 
under subparagraph (B) to the Committee on 
Science, Space, and Technology of the House of 
Representatives, the Committee on Commerce, 
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6203
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS
Science, and Transportation of the Senate, the 
Committee on Appropriations of the House of 
Representatives, and the Committee on Appro-
priations of the Senate. 
(3) INCURRED COST AUDITS.—The Director shall 
ensure that an incurred cost audit is conducted at 
least biennially on any major multi-user research fa-
cility, in accordance with Government Auditing 
Standards as established in Government Account-
ability Office Report GAO-12-331G, or any successor 
report thereto, with the first incurred cost audit to 
commence no later than 12 months after execution of 
the construction agreement. 
(4) CONTINGENCIES.— 
(A) IN GENERAL.—Except as provided for 
in subparagraph (C)(ii), the Foundation shall— 
(i) provide oversight for contingency in 
accordance with Cost Principles Uniform 
Guidance in 2 C.F.R. part 200.433, or any 
successor thereto, and the Federal Acquisi-
tion Regulation as appropriate, except as 
provided in this paragraph; and 
(ii) not make any award which pro-
vides for contributions to a contingency re-
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6203
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS
serve held or managed by the awardee, as 
defined in 2 C.F.R. part 200.433(c). 
(B) 
UPDATING
POLICY
MANUAL.—The 
Foundation shall update its Large Facilities 
Manual and any other applicable guidance for 
contingencies on major multi-user research fa-
cilities with regard to estimating, monitoring, 
and accounting for contingency. 
(C) 
FOUNDATION
REQUIREMENTS.—The 
policy updated under subparagraph (B) shall re-
quire that the Foundation— 
(i) may only include contingency 
amounts in an award in accordance with 
Cost Principles Uniform Guidance in 2 
C.F.R. part 200.433, or any successor there-
to, and the Federal Acquisition Regulation 
as appropriate; and 
(ii) shall retain control over funds 
budgeted for contingency, but may disburse 
budgeted contingency funds incrementally to 
the awardee to ensure project stability and 
continuity. 
(D) AWARDEE REQUIREMENTS.—The policy 
updated under subparagraph (B) shall require 
that an awardee shall— 
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6203
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS
(i) provide verifiable documentation to 
support any amounts proposed for contin-
gencies; and 
(ii) support requests for the release of 
contingency funds with evidence of a bona 
fide need and that the amounts allocated to 
the performance baseline are reasonable and 
allowable. 
(E) CURRENT AWARDEES.—The Foundation 
shall work with awardees for whom awards with 
contingency provisions have been made before the 
date of enactment of this Act— 
(i) to determine if any of their use of 
contingency funds represents out-of-scope 
changes for which Foundation’s prior writ-
ten approval was not obtained; and 
(ii) if out-of-scope changes are found, 
to identify any financial action that may 
be appropriate. 
(5) MANAGEMENT FEES.— 
(A) DEFINITION.—In this paragraph, the 
term ‘‘management fee’’ means a portion of an 
award made by the Foundation for the purpose 
of covering ordinary and legitimate business ex-
penses necessary to maintain operational sta-
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6203
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS
bility which are not otherwise allowable under 
Cost Principles Uniform Guidance in 2 C.F.R. 
part 200, Subpart E, or any successor regulation 
thereto. 
(B) LIMITATION.—The Foundation may 
provide a management fee under an award only 
if the awardee provides justification as to the 
need for such funds. In such cases, the Founda-
tion shall take into account the awardee’s overall 
financial circumstances when determining the 
amount of the fee if justified. 
(C) FINANCIAL INFORMATION.—The Foun-
dation shall require award applicants to provide 
income and financial information covering a pe-
riod of no less than 3 prior years (or in the case 
of an entity established less than 3 years prior 
to the entity’s application date, the period begin-
ning on the date of establishment and ending on 
the application date), including cash on hand 
and net asset information, in support of a re-
quest for management fees. The Foundation shall 
also require awardees to report to the Founda-
tion annually any sources of non-Federal funds 
received in excess of $50,000 during the award 
period. 
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6203
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS
(D) EXPENSE
REPORTING.—The Founda-
tion shall require awardees to track and report 
to the Foundation annually all expenses reim-
bursed or otherwise paid for with management 
fee funds, in accordance with Federal accounting 
practices as established in Government Account-
ability Office Report GAO–12–331G, or any suc-
cessor report thereto. 
(E) AUDITS.—The Inspector General of the 
Foundation may audit any Foundation award 
for compliance with this paragraph. 
(F) PROHIBITED USES.—An awardee may 
not use management fees for— 
(i) costs allowable under Cost Prin-
ciples Uniform Guidance in 2 C.F.R. part 
200, Subpart E, or any successor regulation 
thereto; 
(ii) alcoholic beverages; 
(iii) tickets to concerts, sporting, or 
other entertainment events; 
(iv) vacation or other travel for non-
business purposes; 
(v) charitable contributions, except for 
a charitable contribution of direct benefit to 
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6203
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS
the project or activity supported by the 
management fee; 
(vi) social or sporting club member-
ships; 
(vii) meals or entertainment for non-
business purposes; 
(viii) luxury or personal items; 
(ix) lobbying, as described in the Uni-
form Guidance at 2 C.F.R. 200.450; or 
(x) any other purpose the Foundation 
determines is inappropriate. 
(G) REVIEW.—The Foundation shall review 
management fee usage for each Foundation 
award on at least an annual basis for compli-
ance with this paragraph and the Foundation’s 
Large Facilities Manual. 
(6) REPORT.—Not later than 12 months after the 
date of enactment of this Act, the Director shall sub-
mit to Congress a report describing the Foundation’s 
policies for developing and managing major multi- 
user research facility construction costs, including a 
description of any aspects of the policies that diverge 
from the best practices recommended in Government 
Accountability Office Report GAO-09-3SP, or any 
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6203
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS
successor report thereto, and the Uniform Guidance in 
2 C.F.R. part 200. 
(7) NONCOMPLIANCE.—The Director shall ensure 
that the Foundation shall take the enforcement ac-
tions specified in 45 C.F.R. 92.43 for noncompliance 
with this section. 
SEC. 4. WHISTLEBLOWER EDUCATION. 
(a) IN GENERAL.—The Foundation shall be subject to 
section 4712 of title 41, United States Code. 
(b) EDUCATION AND TRAINING.—The Foundation shall 
provide education and training for Foundation managers 
and staff on the requirements of such section 4712, and pro-
vide information on such section to all awardees, contrac-
tors, and employees of such awardees and contractors. 
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6203
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS
VerDate Sep 11 2014 
21:22 Jun 13, 2016
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6203
E:\BILLS\H5049.RH
H5049
srobinson on DSK5SPTVN1PROD with BILLS