Common use of BUDGET REALLOCATION Clause in Contracts

BUDGET REALLOCATION. The Energy Commission, through its CAM and CAO, and the Contractor can agree upon and make certain budget reallocations without a formal amendment to this Agreement as long as ALL of the following conditions are met: For agreements without work authorizations, the total of all budget reallocations cannot exceed ten percent (10%) with a cap amount of $150,000 of the Agreement Amount. For purposes of this provision, “Agreement Amount” means the total amount of Energy Commission funds being paid to Contractor under this Agreement. It does not include any match funds provided by Contractor. For example, if under an agreement the Energy Commission agrees to pay a contractor $100,000 and the contractor is supplying $500,000 in match funding, the ten percent (10%) limitation applies to the $100,000. Only up to $10,000 of Energy Commission funds can be reallocated without a formal amendment. If under an agreement the Energy Commission agrees to pay a contractor $1,750,000, ten percent would be $175,000, but the cap is $150,000, so the most that could be reallocated without a formal amendment is $150,000. For agreements with work authorizations, budget reallocations up to ten percent (10%) with a cap of $150,000 of the entire agreement can be made. Budget reallocations up to ten percent (10%) of each work authorization can be made so long as the total amount of all work authorization budget reallocations does not exceed 10 percent of the agreement amount and is within the cap of $150,000. For example, assume an Agreement Amount is $175,000 and the agreement has two work authorizations, WA1 and WA2. WA1 has a budget of $100,000, and WA2 has a budget of $50,000. $10,000 (10% of $100,000) can be moved within WA1. $5,000 (10% of $50,000) can be moved within WA2. In addition to this, $2,500 (10% of $25,000, the Agreement Amount of $175,000 minus the combined work authorization budgets of $150,000) can be made to the portion of the Agreement Amount not associated with work authorizations. The total of these budget reallocations does not exceed ten percent of the total agreement amount or the $150,000 cap. The budget reallocation cannot substantially change the Scope of Work. Examples of budget reallocations that do not substantially change the Scope of Work include, but are not limited to, the following: Increasing or decreasing the overall travel budget. This does not mean an increase to the allowed per diem rates under this Agreement. Increasing or decreasing the equipment budget. Increasing or decreasing the number of personnel assigned to complete tasks. This does not include increasing the hourly rates of the personnel and classifications listed in the budget. Increasing hourly rates requires a formal amendment. The addition of personnel also requires a formal amendment unless there is already an identified classification of rates in the budget that the new personnel will be filling. The budget reallocation only involves moving funds between tasks or categories. The total Agreement Amount and the total budget of any work authorizations must remain unchanged. Increasing the total amount of the Agreement requires a formal amendment. The budget reallocation does not increase the percentage rate of Indirect Overhead, Direct Overhead, Fringe Benefits, General and Administrative Costs, Profit, or any other rates listed in the budget. For example, if an agreement budget lists the Indirect Overhead percentage rate as 25% of Direct Labor, the 25% cannot be changed without a formal amendment. Another example is that if a contractor listed that its profit rate is 8% of the total agreement, to increase this rate would require a formal amendment. To effectuate a budget reallocation under this section, the Contractor must make a request in writing to both the CAM and the CAO. Both the CAM and CAO will then approve or disapprove the request in writing; the approval or disapproval is not effective or binding unless signed by both the CAM and the CAO. Oral communications cannot be used or relied upon. If the request is approved, the CAM shall revise the Budget Attachments to reflect the changes and send them to the CAO and Contractor. Any desired budget reallocations that do not meet the four criteria in this section must be made through a formal amendment. For purposes of this provision, a “formal amendment” means that all of the following must occur: approval by the Energy Commission at a Commission Business Meeting, a written amendment signed by both parties, and approval by the California Department of General Services. Attempted budget reallocations that do not meet the requirements of this section are not legally binding upon the parties.

BUDGET REALLOCATION. A. The Energy Commission, through its CAM and CAO, and the Contractor can agree upon and make certain budget reallocations without a formal amendment to this Agreement as long as ALL of the following conditions are met: : 1) For agreements without work authorizations, the total of all budget reallocations cannot exceed ten percent (10%) with a cap amount of $150,000 of the Agreement Amount. For purposes of this provision, “Agreement Amount” means the total amount of Energy Commission funds being paid to Contractor under this Agreement. It does not include any match funds provided by Contractor. For example, if under an agreement the Energy Commission agrees to pay a contractor $100,000 and the contractor is supplying $500,000 in match funding, the ten percent (10%) limitation applies to the $100,000. Only up to $10,000 of Energy Commission funds can be reallocated without a formal amendment. If under an agreement the Energy Commission agrees to pay a contractor $1,750,000, ten percent would be $175,000, but the cap is $150,000, so the most that could be reallocated without a formal amendment is $150,000. For agreements with work authorizations, budget reallocations up to ten percent (10%) with a cap of $150,000 of the entire agreement can be made. Budget reallocations up to ten percent (10%) of each work authorization can be made so long as the total amount of all work authorization budget reallocations does not exceed 10 percent of the agreement amount and is within the cap of $150,000. For example, assume an Agreement Amount is $175,000 and the agreement has two work authorizations, WA1 and WA2. WA1 has a budget of $100,000, and WA2 has a budget of $50,000. $10,000 (10% of $100,000) can be moved within WA1. $5,000 (10% of $50,000) can be moved within WA2. In addition to this, $2,500 (10% of $25,000, the Agreement Amount of $175,000 minus the combined work authorization budgets of $150,000) can be made to the portion of the Agreement Amount not associated with work authorizations. The total of these budget reallocations does not exceed ten percent of the total agreement amount or the $150,000 cap. . 2) The budget reallocation cannot substantially change the Scope of Work. Examples of budget reallocations that do not substantially change the Scope of Work include, but are not limited to, the following: • Increasing or decreasing the overall travel budget. This does not mean an increase to the allowed per diem rates under this Agreement. • Increasing or decreasing the equipment budget. • Increasing or decreasing the number of personnel assigned to complete tasks. This does not include increasing the hourly rates of the personnel and classifications listed in the budget. Increasing hourly rates requires a formal amendment. The addition of personnel also requires a formal amendment unless there is already an identified classification of rates in the budget that the new personnel will be filling. . 3) The budget reallocation only involves moving funds between tasks or categories. The total Agreement Amount and the total budget of any work authorizations must remain unchanged. Increasing the total amount of the Agreement requires a formal amendment. . 4) The budget reallocation does not increase the percentage rate of Indirect Overhead, Direct Overhead, Fringe Benefits, General and Administrative Costs, Profit, or any other rates listed in the budget. For example, if an agreement budget lists the Indirect Overhead percentage rate as 25% of Direct Labor, the 25% cannot be changed without a formal amendment. Another example is that if a contractor listed that its profit rate is 8% of the total agreement, to increase this rate would require a formal amendment. . B. To effectuate a budget reallocation under this section, the Contractor must make a request in writing to both the CAM and the CAO. Both the CAM and CAO will then approve or disapprove the request in writing; the approval or disapproval is not effective or binding unless signed by both the CAM and the CAO. Oral communications cannot be used or relied upon. If the request is approved, the CAM shall revise the Budget Attachments to reflect the changes and send them to the CAO and Contractor. . C. Any desired budget reallocations that do not meet the four criteria in this section must be made through a formal amendment. For purposes of this provision, a “formal amendment” means that all of the following must occur: approval by the Energy Commission at a Commission Business Meeting, a written amendment signed by both parties, and approval by the California Department of General Services. . D. Attempted budget reallocations that do not meet the requirements of this section are not legally binding upon the parties.

BUDGET REALLOCATION. A. The Energy Commission, through its CAM and CAO, and the Contractor can agree upon and make certain budget reallocations without a formal amendment to this Agreement as long as ALL of the following conditions are met: : 1) For agreements without work authorizations, the total of all budget reallocations cannot exceed ten percent (10%) with a cap amount of $150,000 of the Agreement Amount. For purposes of this provision, “Agreement Amount” means the total amount of Energy Commission funds being paid to Contractor under this Agreement. It does not include any match funds provided by Contractor. For example, if under an agreement the Energy Commission agrees to pay a contractor $100,000 and the contractor is supplying $500,000 in match funding, the ten percent (10%) limitation applies to the $100,000. Only up to $10,000 of Energy Commission funds can be reallocated without a formal amendment. If under an agreement the Energy Commission agrees to pay a contractor $1,750,000, ten percent would be $175,000, but the cap is $150,000, so the most that could be reallocated without a formal amendment is $150,000. For agreements with work authorizations, budget reallocations up to ten percent (10%) with a cap of $150,000 of the entire agreement can be made. Budget reallocations up to ten percent (10%) of each work authorization can be made so long as the total amount of all work authorization budget reallocations does not exceed 10 percent of the agreement amount and is within the cap of $150,000. For example, assume an Agreement Amount is $175,000 and the agreement has two work authorizations, WA1 and WA2. WA1 has a budget of $100,000, and WA2 has a budget of $50,000. $10,000 (10% of $100,000) can be moved within WA1. $5,000 (10% of $50,000) can be moved within WA2. In addition to this, $2,500 (10% of $25,000, the Agreement Amount of $175,000 minus the combined work authorization budgets of $150,000) can be made to the portion of the Agreement Amount not associated with work authorizations. The total of these budget reallocations does not exceed ten percent of the total agreement amount or the $150,000 cap. . 2) The budget reallocation cannot substantially change the Scope of Work. Examples of budget reallocations that do not substantially change the Scope of Work include, but are not limited to, the following: • Increasing or decreasing the overall travel budget. This does not mean an increase to the allowed per diem rates under this Agreement. • Increasing or decreasing the equipment budget. • Increasing or decreasing the number of personnel assigned to complete tasks. This does not include increasing the hourly rates of the personnel and classifications listed in the budget. Increasing hourly rates requires a formal amendment. The addition of personnel also requires a formal amendment unless there is already an identified classification of rates in the budget that the new personnel will be filling. . 3) The budget reallocation only involves moving funds between tasks or categories. The total Agreement Amount and the total budget of any work authorizations must remain unchanged. Increasing the total amount of the Agreement requires a formal amendment. . 4) The budget reallocation does not increase the percentage rate of Indirect Overhead, Direct Overhead, Fringe Benefits, General and Administrative Costs, Profit, or any other rates listed in the budget. For example, if an agreement budget lists the Indirect Overhead percentage rate as 25% of Direct Labor, the 25% cannot be changed without a formal amendment. Another example is that if a contractor listed that its profit rate is 8% of the total agreement, to increase this rate would require a formal amendment. . B. To effectuate a budget reallocation under this section, the Contractor must make a request in writing to both the CAM and the CAO. Both the CAM and CAO XXX will then approve or disapprove the request in writing; the approval or disapproval is not effective or binding unless signed by both the CAM and the CAO. Oral communications cannot be used or relied upon. If the request is approved, the CAM shall revise the Budget Attachments to reflect the changes and send them to the CAO and Contractor. . C. Any desired budget reallocations that do not meet the four criteria in this section must be made through a formal amendment. For purposes of this provision, a “formal amendment” means that all of the following must occur: approval by the Energy Commission at a Commission Business Meeting, a written amendment signed by both parties, and approval by the California Department of General Services. . D. Attempted budget reallocations that do not meet the requirements of this section are not legally binding upon the parties.

BUDGET REALLOCATION. The Energy Commission, through its CAM and CAO, and the Contractor can agree upon and make certain budget reallocations without a formal amendment to this Agreement as long as ALL of the following conditions are met: For agreements without work authorizations, the total of all budget reallocations cannot exceed ten percent (10%) with a cap amount of $150,000 75,000 of the Agreement Amount. For purposes of this provision, “Agreement Amount” means the total amount of Energy Commission funds being paid to Contractor under this Agreement. It does not include any match funds provided by Contractor. For example, if under an agreement the Energy Commission agrees to pay a contractor $100,000 and the contractor is supplying $500,000 in match funding, the ten percent (10%) limitation applies to the $100,000. Only up to $10,000 of Energy Commission funds can be reallocated without a formal amendment. If under an agreement the Energy Commission agrees to pay a contractor $1,750,000800,000, ten percent would be $175,00080,000, but the cap is $150,00075,000, so the most that could be reallocated without a formal amendment is $150,00075,000. For agreements with work authorizations, budget reallocations up to ten percent (10%) with a cap of $150,000 75,000 of the entire agreement can be made. Budget reallocations up to ten percent (10%) of each work authorization can be made so long as the total amount of all work authorization budget reallocations does not exceed 10 percent of the agreement amount and is within the cap of $150,00075,000. For example, assume an Agreement Amount is $175,000 and the agreement has two work authorizations, WA1 and WA2. WA1 has a budget of $100,000, and WA2 has a budget of $50,000. $10,000 (10% of $100,000) can be moved within WA1. $5,000 (10% of $50,000) can be moved within WA2. In addition to this, $2,500 (10% of $25,000, the Agreement Amount of $175,000 minus the combined work authorization budgets of $150,000) can be made to the portion of the Agreement Amount not associated with work authorizations. The total of these budget reallocations does not exceed ten percent of the total agreement amount or the $150,000 75,000 cap. The budget reallocation cannot substantially change the Scope of Work. Examples of budget reallocations that do not substantially change the Scope of Work include, but are not limited to, the following: Increasing or decreasing the overall travel budget. This does not mean an increase to the allowed per diem rates under this Agreement. Increasing or decreasing the equipment budget. Increasing or decreasing the number of personnel assigned to complete tasks. This does not include increasing the hourly rates of the personnel and classifications listed in the budget. Increasing hourly rates requires a formal amendment. The addition of personnel also requires a formal amendment unless there is already an identified classification of rates in the budget that the new personnel will be filling. The budget reallocation only involves moving funds between tasks or categories. The total Agreement Amount and the total budget of any work authorizations must remain unchanged. Increasing the total amount of the Agreement requires a formal amendment. The budget reallocation does not increase the percentage rate of Indirect Overhead, Direct Overhead, Fringe Benefits, General and Administrative Costs, Profit, or any other rates listed in the budget. For example, if an agreement budget lists the Indirect Overhead percentage rate as 25% of Direct Labor, the 25% cannot be changed without a formal amendment. Another example is that if a contractor listed that its profit rate is 8% of the total agreement, to increase this rate would require a formal amendment. To effectuate a budget reallocation under this section, the Contractor must make a request in writing to both the CAM and the CAO. Both the CAM and CAO will then approve or disapprove the request in writing; the approval or disapproval is not effective or binding unless signed by both the CAM and the CAO. Oral communications cannot be used or relied upon. If the request is approved, the CAM shall revise the Budget Attachments to reflect the changes and send them to the CAO and Contractor. Any desired budget reallocations that do not meet the four criteria in this section must be made through a formal amendment. For purposes of this provision, a “formal amendment” means that all of the following must occur: approval by the Energy Commission at a Commission Business Meeting, a written amendment signed by both parties, and approval by the California Department of General Services. Attempted budget reallocations that do not meet the requirements of this section are not legally binding upon the parties.

BUDGET REALLOCATION. The Energy Commission, through its CAM and CAO, and the Contractor can agree upon and make certain budget reallocations without a formal amendment to this Agreement as long as ALL of the following conditions are met: For agreements without work authorizations, the total of all budget reallocations cannot exceed ten percent (10%) with a cap amount of $150,000 of the Agreement Amount. For purposes of this provision, “Agreement Amount” means the total amount of Energy Commission funds being paid to Contractor under this Agreement. It does not include any match funds provided by Contractor. For example, if under an agreement the Energy Commission agrees to pay a contractor $100,000 and the contractor is supplying $500,000 in match funding, the ten percent (10%) limitation applies to the $100,000. Only up to $10,000 of Energy Commission funds can be reallocated without a formal amendment. If under an agreement the Energy Commission agrees to pay a contractor $1,750,000, ten percent would be $175,000, but the cap is $150,000, so the most that could be reallocated without a formal amendment is $150,000. For agreements with work authorizations, budget reallocations up to ten percent (10%) with a cap of $150,000 of the entire agreement can be made. Budget reallocations up to ten percent (10%) of each work authorization can be made so long as the total amount of all work authorization budget reallocations does not exceed 10 percent of the agreement amount and is within the cap of $150,000. For example, assume an Agreement Amount is $175,000 and the agreement has two work authorizations, WA1 and WA2. WA1 has a budget of $100,000, and WA2 has a budget of $50,000. $10,000 (10% of $100,000) can be moved within WA1. $5,000 (10% of $50,000) can be moved within WA2. In addition to this, $2,500 (10% of $25,000, the Agreement Amount of $175,000 minus the combined work authorization budgets of $150,000) can be made to the portion of the Agreement Amount not associated with work authorizations. The total of these budget reallocations does not exceed ten percent of the total agreement amount or the $150,000 cap. The budget reallocation cannot substantially change the Scope of Work. Examples of budget reallocations that do not substantially change the Scope of Work include, but are not limited to, the following: Increasing or decreasing the overall travel budget. This does not mean an increase to the allowed per diem rates under this Agreement. Increasing or decreasing the equipment budget. Increasing or decreasing the number of personnel assigned to complete tasks. This does not include increasing the hourly rates of the personnel and classifications listed in the budget. Increasing hourly rates requires a formal amendment. The addition of personnel also requires a formal amendment unless there is already an identified classification of rates in the budget that the new personnel will be filling. The budget reallocation only involves moving funds between tasks or categories. The total Agreement Amount and the total budget of any work authorizations must remain unchanged. Increasing the total amount of the Agreement requires a formal amendment. .The budget reallocation does not increase the percentage rate of Indirect Overhead, Direct Overhead, Fringe Benefits, General and Administrative Costs, Profit, or any other rates listed in the budget. For example, if an agreement budget lists the Indirect Overhead percentage rate as 25% of Direct Labor, the 25% cannot be changed without a formal amendment. Another example is that if a contractor listed that its profit rate is 8% of the total agreement, to increase this rate would require a formal amendment. To effectuate a budget reallocation under this section, the Contractor must make a request in writing to both the CAM and the CAO. Both the CAM and CAO will then approve or disapprove the request in writing; the approval or disapproval is not effective or binding unless signed by both the CAM and the CAO. Oral communications cannot be used or relied upon. If the request is approved, the CAM shall revise the Budget Attachments to reflect the changes and send them to the CAO and Contractor. Any desired budget reallocations that do not meet the four criteria in this section must be made through a formal amendment. For purposes of this provision, a “formal amendment” means that all of the following must occur: approval by the Energy Commission at a Commission Business Meeting, a written amendment signed by both parties, and approval by the California Department of General Services. Attempted budget reallocations that do not meet the requirements of this section are not legally binding upon the parties.

BUDGET REALLOCATION. The Energy Commission, through its CAM Contract Manager and CAOContract Officer, and the Contractor can agree upon and make certain budget reallocations without a formal amendment to this Agreement as long as ALL of the following conditions are met: For agreements without work authorizations, the total of all budget reallocations cannot exceed ten percent (10%) with a cap amount of $150,000 75,000 of the Agreement Amount. For purposes of this provision, “Agreement Amount” means the total amount of Energy Commission funds being paid to Contractor under this Agreement. It does not include any match funds provided by Contractor. For example, if under an agreement the Energy Commission agrees to pay a contractor $100,000 and the contractor is supplying $500,000 in match funding, the ten percent (10%) limitation applies to the $100,000. Only up to $10,000 of Energy Commission funds can be reallocated without a formal amendment. If under an agreement the Energy Commission agrees to pay a contractor $1,750,000800,000, ten percent would be $175,00080,000, but the cap is $150,00075,000, so the most that could be reallocated without a formal amendment is $150,00075,000. For agreements with work authorizations, budget reallocations up to ten percent (10%) with a cap of $150,000 75,000 of the entire agreement can be made. Budget reallocations up to ten percent (10%) of each work authorization can be made so long as the total amount of all work authorization budget reallocations does not exceed 10 percent of the agreement amount and is within the cap of $150,00075,000. For example, assume an Agreement Amount is $175,000 and the agreement has two work authorizations, WA1 and WA2. WA1 has a budget of $100,000, and WA2 has a budget of $50,000. $10,000 (10% of $100,000) can be moved within WA1. $5,000 (10% of $50,000) can be moved within WA2. In addition to this, $2,500 (10% of $25,000, the Agreement Amount of $175,000 minus the combined work authorization budgets of $150,000) can be made to the portion of the Agreement Amount not associated with work authorizations. The total of these budget reallocations does not exceed ten percent of the total agreement amount or the $150,000 75,000 cap. The budget reallocation cannot substantially change the Scope of Work. Examples of budget reallocations that do not substantially change the Scope of Work include, but are not limited to, the following: Increasing or decreasing the overall travel budget. This does not mean an increase to the allowed per diem rates under this Agreement. Increasing or decreasing the equipment budget. Increasing or decreasing the number of personnel assigned to complete tasks. This does not include increasing the hourly rates of the personnel and classifications listed in the budget. Increasing hourly rates requires a formal amendment. The addition of personnel also requires a formal amendment unless there is already an identified classification of rates in the budget that the new personnel will be filling. The budget reallocation only involves moving funds between tasks tasks, line items, or categories. The total Agreement Amount and the total budget of any work authorizations must remain unchanged. Increasing the total amount of the Agreement requires a formal amendment. The budget reallocation does not increase the percentage rate of Indirect Overhead, Direct Overhead, Fringe Benefits, General and Administrative Costs, Profit, or any other rates listed in the budget. For example, if an agreement budget lists the Indirect Overhead percentage rate as 25% of Direct Labor, the 25% cannot be changed without a formal amendment. Another example is that if a contractor listed that its profit rate is 8% of the total agreement, to increase this rate would require a formal amendment. To effectuate a budget reallocation under this section, the Contractor must make a request in writing to both the CAM Contract Manager and the CAOContract Officer. Both the CAM Contract Manager and CAO Contract Officer will then approve or disapprove the request in writing; the approval or disapproval is not effective or binding unless signed by both the CAM Contract Manager and the CAOContract Officer. Oral communications cannot be used or relied upon. If the request is approved, the CAM Contract Manager shall revise the Budget Attachments to reflect the changes and send them to the CAO Contract Officer and Contractor. Any desired budget reallocations that do not meet the four criteria in this section must be made through a formal amendment. For purposes of this provision, a “formal amendment” means that all of the following must occur: approval by the Energy Commission at a Commission Business Meeting, a written amendment signed by both parties, and approval by the California Department of General Services. Attempted budget reallocations that do not meet the requirements of this section are not legally binding upon the parties.