(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 Founda-
tion shall work with awardees for whom awards 
with contingency provisions have been made be-
fore 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-
bility which are not otherwise allowable under 
Cost Principles Uniform Guidance in 2 CFR 
part 200, Subpart E, or any successor regula-
tion 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 over-
all financial circumstances when determining 
the amount of the fee if justified. 
(C) 
FINANCIAL
INFORMATION.—The 
Foundation shall require award applicants to 
provide income and financial information cov-
ering a period 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 beginning on the date of establishment 
and ending on the application date), including 
cash on hand and net asset information, in sup-
port of a request for management fees. The 
Foundation shall also require awardees to re-
port to the Foundation annually any sources of 
non-Federal funds received in excess of $50,000 
during the award period.
(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 account-
ing practices as established in Government Ac-
countability Office Report GAO–12–331G, or 
any successor 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 CFR part 
200, Subpart E, or any successor regula-
tion 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 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 CFR 200.450; or 
(x) any other purpose the Foundation 
determines is inappropriate. 
(G) REVIEW.—The Foundation shall re-
view management fee usage for each Founda-
tion award on at least an annual basis for com-
pliance with this paragraph and the Founda-
tion’s Large Facilities Manual. 
(6) REPORT.—Not later than 12 months after 
the date of enactment of this Act, the Director shall 
submit to Congress a report describing the Founda-
tion’s policies for developing and managing major 
multi-user research facility construction costs, in-
cluding 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 successor report thereto, and the Uni-
form Guidance in 2 CFR part 200. 
(7) NONCOMPLIANCE.—The Director shall en-
sure that the Foundation shall take the enforcement 
actions specified in 45 CFR 92.43 for noncompli-
ance 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 man-
agers and staff on the requirements of such section 4712, 
and provide information on such section to all awardees, 
contractors, and employees of such awardees and contrac-
tors. 
Passed the House of Representatives June 14, 2016. 
Attest: 
Clerk.
114TH CONGRESS 
2D SESSION 
H. R. 5049 
AN ACT 
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.