Exhibit 10.29
SUBCONTRACT AGREEMENT
BETWEEN
XXXXXX X. XXXXXX, INC.
AND
STC CATALYSTS, INC.
AGREEMENT NO. A11793
This Subcontract is entered into between Xxxxxx X. Xxxxxx, Inc. Xxxxx Xxxx,
Xxxxxxxxx, Xxxxxxxxxxxxx 00000 (hereinafter referred to as "ADL" or "EPYX") and
STC Catalysts, Inc., 10 Xxxxx Xxxxxx Xxxxx, Xxxxxxx, XX 00000 (hereinafter
referred to as "SCI", "SUBCONTRACTOR", or "Seller").
W I T N E S S E T H
WHEREAS, ADL has entered into Prime Cooperative Agreement No. DE-FC02-00XX00000
with the United States Government, Department of Energy, and
WHEREAS, ADL desires to enter into a subcontract with SCI under said prime
contract on a 35% Cost Sharing basis for assistance on the program entitled "New
Millennium Fuel Processor for Transportation Fuel Cell Power System, Subtopic
x.x.,"
NOW THEREFORE, the parties hereto to mutually agree as follows:
SCHEDULE OF ARTICLES
--------------------
ARTICLE I - STATEMENT OF WORK
-----------------------------
SCI shall furnish personnel, materials, services, equipment, facilities, and do
all things necessary or incident to perform the tasks specified in the attached
Statement of Work identified as Exhibit A, which is incorporated herein and made
a part hereof.
ARTICLE II - PERIOD OF PERFORMANCE
----------------------------------
Agreement No. A11793
Page 2 of 5
The period of performance of this subcontract shall be from December 20, 1999
through January 14, 2003, inclusive of all reports.
ARTICLE III - COST-SHARING ARRANGEMENT
--------------------------------------
A. Estimated Cost - The total estimated cost for the work to be accomplished
--------------
under this subcontract is $92,308. SCI agrees to cost-share 35% of its
estimated contribution to the project. Therefore, if SCI incurs costs of
$92,308, it will cost share $32,308 and be reimbursed $60,000.
B. Cost Overrun/Additional Work - If ADL approves a cost overrun or additional
----------------------------
work under this subcontract, SCI agrees that it will share 35% of the
overrun cost or additional work.
ARTICLE IV - INVOICES
---------------------
Invoices shall be submitted monthly, in original and one copy referencing this
Subcontract number and mailed to the following addressees for approval and
payment:
Original to: Copy to:
----------- -------
Xxxxxx X. Xxxxxx, Inc. Xxxxxx X. Xxxxxx, Inc.
Attn.: Xx. Xxxxxxxx X. Xxxxxxxxx Attn: Ms. Hieu Do
00 Xxxxx Xxxx 00 Xxxxx Xxxx
Xxxxxxxxx, XX 00000-0000 Xxxxxxxxx, XX 00000-0000
The invoices will contain, by element, actual expenditures for the current
period, total cumulated xxxxxxxx to date, and will also indicate cost share
amount and amount due. The period of services and agreement number should also
be cited. Each current month's actual charges will be reduced by the 35% cost
share amount.
ARTICLE V - PROVISIONAL BILLING RATES
-------------------------------------
Pending establishment of final overhead rates for any fiscal period, SCI shall
invoice at such provisional overhead rates as agreed upon between SCI and ADL
and/or the Government for application to this subcontract, subject to
appropriate adjustment when the final rates for that period are established. To
prevent substantial over- and under-payments, provisional billing rates may, at
the request of either party, be revised by mutual agreement, either
retroactively or prospectively. Please refer to "Additional Special Provisions,
Item No. 7" for additional information regarding this subject.
Agreement No. A11793
Page 3 of 5
ARTICLE VI - SUBCONTRACT SURVEILLANCE
-------------------------------------
Authorized representatives of ADL and/or DOE shall have access to SCI's
facilities in order to review the progress, discuss problems or failures, and
witness testing pertaining to the requirements of this subcontract. SCI shall
provide adequate information on subcontract performance in response to
reasonable requests by ADL and/or DOE representatives. Our surveillance shall be
during normal business hours and will be with reasonable notice.
ARTICLE VII - TECHNICAL DIRECTION AND SUBCONTRACT ADMINISTRATION
----------------------------------------------------------------
ADL's Program Manager and Subcontract Administrator for this subcontract are:
Program Manaser Subcontract Administrator
--------------- -------------------------
Xx. Xxxxxxxx X. Xxxxxxxxx Xx. Xxxxxx Xxxxx
Xxxxxx X. Xxxxxx, Inc. Xxxxxx X. Xxxxxx, Inc.
00 Xxxxx Xxxx 00 Xxxxx Xxxx
Xxxxxxxxx, XX 00000-0000 Xxxxxxxxx, XX 00000-0000
The Program Manager will act as ADL's representative for technical matters
providing technical direction and discussion as necessary with respect to the
Statement of Work, and monitoring the progress and quality of SCI's performance.
The Program Manager is not authorized to take any action, either directly or
indirectly, that would change the pricing, quantity, quality, place of
performance, delivery schedule or any other terms and conditions of the basic
subcontract, or to direct the accomplishment of effort which goes beyond the
scope of the basic contractual Statement of Work.
When, in the opinion of SCI, the Program Manager requests efforts outside
the existing scope of the subcontract, SCI shall promptly notify Xxxxxx Xxxxx,
the ADL Subcontract Administrator, in writing. No action shall be taken by SCI
under such direction until the ADL Subcontract Administrator has issued a
subcontract modification or otherwise resolved the issue.
ARTICLE VIII - INSPECTION AND ACCEPTANCE
----------------------------------------
ADL shall inspect and provisionally accept the materials and services provided
under this subcontract and shall advise of any defect in materials and services
not in accordance with the SOW or requested changes therein. In addition, the
Agreement No. A11793
Page 4 of 5
Contracting Officer under the prime contract, or his duly authorized
representative is authorized to perform inspection and to accept the materials
and services provided under the prime contract including those provided under
this subcontract. Any provisional acceptance by ADL is subject to final
acceptance by the Contracting Officer.
ARTICLE IX - INDEMNIFICATION FOR DEFECTIVE COST OR PRICING DATA
---------------------------------------------------------------
In the event ADL suffers a price reduction under the prime contract as a result
of defective cost or pricing data furnished by SCI in connection with this
subcontract or any modification thereof, SCI shall indemnify ADL in the full
amount of such reduction.
ARTICLE X - ADDITIONAL PROVISIONS
---------------------------------
The clauses set forth in Attachment I, ADL Standard Provisions for Services and
Supply Contracts (1998), Attachment I(1) Guidelines for Intellectual Property
Agreement for SFAA 1.j., Attachment II, Special Terms and Conditions for
Research Financial Assistance Awards, Attachment III, Additional Special
Provisions, Attachment III.x. XXX Assistance Regulation, 10 CFR Part-600, as
amended Subparts A and B, Attachment IV, Federal Assistance Reporting Checklist,
dated 1/28/99 and Attachment V, Intellectual Property Provisions -- Research,
Development, or Demonstration Large Business, State and Local Governments, and
Foreign Organizations apply to this subcontract and are made a part hereof.
ARTICLE XI - AUDIT RESTRICTIONS
-------------------------------
Nothing of this subcontract shall be construed as granting to ADL the right of
access to the financial books and records of SCI for purposes of this
subcontract and ADL's compliance with its obligations to the Government Prime
Contract. Excluded from terms' substitution of "ADL" for the "Government" or the
"Contracting Officer," in the DOE provisions are all of the provisions that
would allow ADL access to -SCI's financial books and records. For purposes of
those excluded clauses, the terms "Government," "Controller General,"
"Department of Energy," or "Contracting Officer" shall remain unchanged, and any
required access to such SCI financial books and records shall be limited to the
cognizant Government activity and its authorized representatives.
ARTICLE XII - ORDER OR PRECEDENCE
---------------------------------
Agreement No. A11793
Page 5 of 5
In the event of an inconsistency in this subcontract, unless otherwise provided
herein, the inconsistency shall be resolved by giving precedence in the
following descending order (i.e. a. has highest priority, b. has next to highest
priority, etc.):
a. Agreement No. A11793 and Exhibit A, Statement of Work
b. Attachment I - ADL Standard Provisions for Services and Supply Contracts
(1998)
c. Attachment II - Special Terms and conditions for Research Financial
Assistance Awards
d. Attachment III - Additional Special Provisions
e. Attachment III.a. - DOE Assistance Regulations, 10 CFR Part-600, as amended
Subparts A and B
f. Attachment IV - Federal Assistance Reporting Checklist, dated 1/28/99
g. Attachment V - Intellectual Property Provisions - Research, Development, or
Demonstration Large Business, State and Local Governments, and Foreign
Organizations
h. Attachment VI - Guidelines for Intellectual Property Agreement for SFAA
1.j.
All references to the terms "grant(s)" or "contracts(s)" shall be read as
"cooperative agreement" or "agreement;" the terms "grantee" or "contractor"
shall be read as "participant, recipient or awardee;" the term "subgrant" shall
be read as "subaward;" and the terms "subcontract" or "contract" awarded under a
grant shall be read as "contract" under a cooperative agreement.
Agreement No. A11793
Page 6 of 5
BOTH PARTIES HERETO WARRANT and REPRESENT that they have full right, power and
authority to execute this subcontract.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day of year last specified below.
XXXXXX X. XXXXXX, INC. STC CATALYSTS, INC.
By: /s/ Xxxxxx Xxxxx By: /s/ C. Deepak
-------------------------- ------------------
Typed Typed
Name: Xxxxxx Xxxxx Name: Xxxxx Xxxxxx
----------------------- -----------------
Title: Contracting Officer Title: President
---------------------- ---------------
Date: March 20, 2000 Date: March 2, 2000
----------------------- -----------------
Exhibit 10.29
EXHIBIT A
STATEMENT
OF
WORK
Epyx/SCi Confidential and Proprietary
Contract No. DE-FCO2-00XX00000
CONFIDENTIAL STATEMENT OF WORK
EXHIBIT A
Preferential Oxidation Catalyst Development Program between STC
Catalysts, Inc. and Epyx Corporation
Introduction
The objective of this Joint development program is to develop a
state-of-the art preferential oxidation (PROX) catalyst technology suitable for
removal of trace levels less than or equal to 10,000 ppm) of CO from hydrogen
rich humid gaseous streams (the reformate) and its integration with Epyx Next
Millennium Fuel Processor(TM). The PROX is an integral part of the fuel
processor subsystem and its satisfactory performance over a wide range of
conditions is necessary for the satisfactory operation of the fuel cell power
systems. In this program, STC Catalysts, Inc. (SCi) will work closely with Epyx
and a substrate manufacturer subcontractor to develop the PROX reactor and
catalyst. These substrates include- but are not limited to - very high cell
density metallic or ceramic monoliths, reticulates, foams, etc. Catalyst
development will include activities such as conceptualization, synthesis,
washcoating (or solution deposition), pre- and post-reaction characterization of
selected samples, etc. SCI will also assist Epyx in performing manufacturing and
cost analyses of the PROX systems.
In this program, Epyx will evaluate these advanced substrate based PROX
catalysts in both in the microreactor and the pilot plant. The information such
as activity, selectivity, and stability obtained from testing under simulated
and real reformate conditions, will be conveyed to SCi in order for SCI to
improve its PROX formulation. Epyx will also collect kinetic data, design the
PROX reactor(s), and integrate it (them) with the Next Millennium Fuel
Processor(TM). The management of the intellectual property generated during this
program will be governed by the agreement reached between Epyx and SCi signed by
Xxxxx Xxxxxx, President, on behalf of Sci and by Xxxxxxx Xxxxxxx, President, on
behalf of Epyx.
1
Epyx/SCi Confidential and Proprietary
Description of the SOW
The transportation fuel cell power system, of which the fuel processor is a
component, is expected to meet or exceed PNGV 2004 targets. These performance
and cost targets for fuel processor have been established and are shown in Table
1. The PROX catalyst is expected to give less than or equal to 10 ppm CO outlet
concentration at steady state with selectivity (ratio of moles H2 consumed to
moles of CO oxidized) of less than or equal to 1.5 and will operate at less than
or equal to 100 C in a high humidity stream.
Table 1. PNGV Technical Targets: Fuel-Flexible Fuel Processors
(Excludes fuel storage, includes controls, shift reactors,
CO clean-up, heat exchangers)
Calendar Year
Characteristics Units 1997 2000 2004
Energy Efficiency % 70 75 80
Power Density W/L 400 600 750
Specific Power W/kg 400 600 750
Cost $/kW 50 30 10
Start-up to Full Power Min 2 1 0.5
Transient Response Sec 30 20 1.0
(time from 10 to 90% power)
Emissions(a) less than Tier 2 less than Tier 2 less than Tier 2
Durability(b) Hours 1000 2000 5000
CO Content Steady State(c) ppm 100 10 1.0
CO Content Transient ppm 5000 500 100
H2S Content in Product Stream ppm 0 0 0
NH3 Content in Product Stream ppm less than 10 10 less than 10
Targets pertain to gasoline fuel and are consistent with those of the PNGV.
Fuel processor efficiency = total fuel cell system efficiency/fuel cell
stack system efficiency, where total fuel cell system efficiency accounts
for thermal integration. high-volume production: 500,000 units per year.
(a): Emission levels will comply with emission regulations projected to be
in place when the technology is available for market introduction.
(b): Time between catalyst replacement.
(c): dependent on stack development (CO tolerance) progress.
From Table 1 and the foregoing discussion, it is clear that desired
performance characteristics of the PROX catalyst are as follows:
o High activity towards oxidation of CO (and other potential contaminants
such as NH3 and zero
2
Epyx/SCi Confidential and Proprietary
or near zero consumption of hydrogen (via oxidation, methanation, etc.)
o No activity for reverse water gas shift reaction
o Ability to operate with stoichiometric or near stoichiometric amounts of
oxygen
o High thermal and mechanical integrity/longevity
o Ability for rapid startup, shut-down and transients
o Ability to withstand intermittent operation
o Heat transfer capability
o High tolerance for contaminant(s) such as sulfur, chlorine, etc.
o Ability to withstand reformate feed streams emanating from multiple fuels
such as reformulated gasoline, natural gas, ethanol, etc.
o Ability to operate under high humidity conditions
Epyx currently has a PROX catalyst, which meets many of these above
characteristics. The comparison of the activity and selectivity of this catalyst
and SCi's material along with the reaction conditions are shown in Figure 1. Sci
manufactures and markets a Noble Metal Reducible Oxide (NMRO) catalyst
consisting primarily of Pt and SnOx using a proprietary coating process and
incorporating certain metal oxide promoters. From Figure 1, it is clear that
SCI's PROX catalyst is less selective than the Epyx PROX catalyst. The SCi
catalyst seems to have a large activity for H2 consumption - probably via H2
oxidation; an unwanted reaction.
In Phase I of this program, SCI will use its best efforts to meet or exceed
performance and the cost of the Epyx baseline catalyst and provide >|= 10
samples to Epyx for evaluation. The primary objectives in Phase I are to
determine if the selective oxidation of the SCi catalyst can be enhanced and to
extend the proprietary SCi coating process to alternative high density
substrates. Along with the properties mentioned above, the current corderite
substrate may not be suitable for Epyx fuel processor application. If this is
determined to be the case, SCi will use its best efforts to modify its
manufacturing process so as to deposit the low temperature CO oxidation Pt/SnOx
catalyst composition on advanced catalytic substrates for the PROX application.
Throughout this program, SCI will receive assistance from Epyx on the catalyst
composition and advanced substrates.
The objectives stipulated in this Statement of Work will be carried out in
a series of clearly
3
Epyx/SCi Confidential and Proprietary
defined tasks. Critical Reviews will be performed at the completion of Xxxxx
0,0,0, and 10. The performance rate and completion is dependent upon the
availability of funding. An explanation of each task is given below:
Task 1: SCi will undertake modifications of the base Pt/SnOx catalyst necessary
for improvement based on data presented in Figure 1. To perform this task, Sci
will study the competitive effect of water & the synergistic effect of hydrogen
on the performance, using detailed spectroscopic characterization of its
proprietary Pt/SnOx catalyst, and other investigations normally employed during
catalyst development as needed. The studies and tests conducted by SCi will be
only those sufficient to identify the hydrogen oxidation path and to verify that
the catalyst or promoters has been successfully deposited on the substrate. The
modified catalyst samples will be furnished to Epyx for full scale testing. Epyx
will test these Pt/SnOx catalysts in the microreactor under simulated gasoline
reforming conditions and collect activity and selectivity data - similar to data
depicted in Figure 1. For every PROX catalyst tested, Epyx will provide the
input to SCi regarding its performance and will return (if desired) the used
PROX catalyst for evaluation by SCi. Due to difficulties involved in achieving
uniform coatings on very high cell density substrates, and to better delineate
the effect of composition change on the performance, SCi will deposit these
compositions only on 400 cell per square inch cordierite and/or 40 to 60 mesh
chromatographic grade silica gel substrates for Task 1.
Task 2: Upon successful conclusion of Task 1, Epyx, SCi, and Corning will
jointly decide the details of the advanced substrates, which will be used by SCi
for PROX catalyst preparation. These details include cell density, pore volume,
pore size and its distribution, material (metal, ceramic, etc.), substrate
geometry suitable for Epyx evaluation, etc. Among others, substrate selection
for Next Millennium Fuel Processor(TM) criteria will include allowable pressure
drop, allowable thermal mass for rapid start-up, and ease of coating with the
catalyst. The substrates, in the form of a cylinder (d: 0.75" X h: 1.5"), and
its properties will be provided by Epyx to SCI for catalyst preparation -
although they will be made by Corning. These cylinders are suitable for
screening in the Epyx microreactor. SCi will use its best efforts to modify its
proprietary coating process for the alternative substrates.
Task 3: SCI will prepare samples on Epyx specified substrates that are
compatible with the SCi
4
Epyx/SCi Confidential and Proprietary
coating process, and in a quantity mutually determined to be statistically
sufficient to validate performance. SCI will measure activity and reactivate the
samples before sending them to Epyx. Epyx will perform extended testing and will
furnish data as obtained to SCI for cooperative evaluation.
Task 4: When the PROX catalysts prepared in Task 1 and 3 have been evaluated,
Epyx and SCI will jointly discuss and analyze the performance data and catalyst
characteristics, compare the performance and cost of the best SCI catalyst with
Epyx baseline material. This meeting may also be attended by Corning. If the SCi
material exceeds the performance of Epyx baseline PROX catalyst, the discussion
will be focused on strategies for cost reduction. On the contrary, if
performance is an issue then we will find avenues for its further improvement.
Task 5: Based on the results of Task 4, Epyx and SCI will continue the effort of
task 3. In conducting task 5, SCi will, if necessary, prepare the catalysts on
alternative substrates, which may have high cell density. Corning will provide
the characteristics of these substrates.
Task 6: If the data from Task 5 show the performance of the SCi catalyst to be
satisfactory, Epyx will undertake the kinetic evaluation of the new SCi PROX
catalyst in the microreactor. Epyx and SCi will jointly decide the candidate for
kinetic evaluation and SCi will perform detailed manufacturing cost analyses of
this catalyst. However, if the catalyst performance is not acceptable, a
"go/no-go" decision will be made jointly at this time.
Task 7: Assuming a successful completion of task 6, Epyx will collect kinetic
data on the mutually determined PROX catalysts manufactured in Task 5. This data
will be shared with SCi as it is taken.
Task 8: Based on the kinetic results and on completion of Task 7, SCi will
prepare two PROX catalysts on large substrate suitable for the Epyx 50 kWe
system (a few liters in volume) for evaluation in the pilot plant facility with
real reformate. Epyx will provide these large substrates and its properties in a
size and configuration compatible with the SCi manufacturing process.
Task 9: Epyx will design the reactor(s) suitable for the SCi PROX catalyst and
integrate it/them with the modular pressurized reformer (MPR). The MPR will be
tested in the pilot plant for 2-3
5
Epyx/SCi Confidential and Proprietary
week period. This testing will involve multiple fuels, frequent start-up and
shut-down, transient testing, etc.
Task 10: Epyx and SCi will jointly discuss the results of the pilot plant
testing and will jointly make the "go/no-go" decision. If a "go" decision is
made, SCi will assist Epyx in drafting, the Phase H SOW.
Reporting Requirements
Throughout the program, SCI will provide the following support to Epyx:
1. Program management plan
2. Biweekly progress reports through telephone conversation /video conferencing
and email.
3. Support for quarterly DOE meetings
4. Monthly financial reports
5. Monthly progress reports
The key contact at Epyx will be Xx. Xxxxxxxx X. Xxxxxxxxx and at SCi will
be Xx. Xxxxxx X. Xxxx. Time required for performance for Phase 1 is 8 months.
The cost-shared funding for Phase 1 (including SCi's cost share) is $92,308.
6
Preferential CO Oxidation Catalyst Comparison: CO Conversion & Selectivity
SCI and EPYX Catalysts (100 mg samples)
Wet Feed Composition: 0.8% CO, 1.2% O2, 13.7% CO2, 28.1% H2, 36.5% N2, 19.7% H2O
Space Velocity (wet) = 1,220 cc/min-g cat
[THE FOLLOWING TABLE WAS REPRESENTED BY A LINE GRAPH IN THE PRINTED MATERIAL.]
[insert plot points]
ATTACHMENT I
XXXXXX X. XXXXXX, INC.
STANDARD PROVISIONS FOR SERVICES AND SUPPLY SUBCONTRACTS
1998
Page 1 of 5
ATTACHMENT I
XXXXXX X. XXXXXX, INC.
STANDARD PROVISIONS FOR SERVICES AND SUPPLY SUBCONTRACTS
1998
1. INDEPENDENT CONTRACTOR
Subcontractor shall perform under this Subcontract as an independent contractor.
Nothing herein contained shall be construed as creating the relationship of
employer and employee or principal and agent between ADL and Subcontractor or
any employee or agent of Subcontractor. Neither Subcontractor nor any of its
employees or agents have any authority to represent, commit, or bind ADL to any
person, firm, association, corporation or government agency.
2. INDEMNITY AGAINST CLAIMS
Subcontractor hereby agrees to indemnify and save harmless ADL, its agents and
employees, against any and all liability, obligations, claims, loss and expense,
(a) caused or created by Subcontractor, its suppliers, or the agents and
employees of either, arising (i) as a result of willful misconduct or gross
negligence, or (ii) directly or indirectly out of the performance of the work;
or (b) arising directly or indirectly out of injuries suffered or allegedly
suffered by employees of Subcontractor or its suppliers (i) in the course of
their employment, (ii) in the performance of work hereunder, or (iii) upon
premises owned or controlled by ADL.
3. PATENT INDEMNITY
Subcontractor warrants that all products and materials which it furnishes to ADL
hereunder which are not of ADL's design, composition or manufacture do not
infringe any valid patent, copyright or trademark. Subcontractor shall indemnify
and save ADL harmless from any and all expense, liability and/or loss, including
attorney's fees, arising out of claims, suits or actions alleging such
infringement.
4. INSURANCE
If in the performance of this Subcontract Subcontractor's employees are required
to enter premises owned or controlled by ADL or the prime contractor,
Subcontractor shall maintain Workmen's Compensation and Comprehensive Public
Liability and Property Damage, including Automobile Public Liability and
Property Damage coverage in amounts, in forms and with carriers satisfactory to
ADL, and shall on request furnish certificates attesting to such insurance or
submit the policies for inspection by ADL.
Page 2 of 5
5. RELEASE OF INFORMATION
No news release, including photographs and films, public announcements or
confirmation of same, or any part of the subject matter of this Subcontract, or
any phase of any program hereunder shall be made without the prior written
approval of ADL. Such approval will not be unreasonably withheld.
The Subcontractor further agrees to insert the provisions of this clause in any
of its subcontracts, purchase orders, or consulting agreements issued under this
Subcontract.
6. NOTICE OF LABOR DISPUTES
Whenever an actual or potential labor dispute is delaying or threatens to delay
the performance of the work, Subcontractor shall immediately notify ADL in
writing. Such notice shall include all relevant information concerning the
dispute and its background.
7. TAXES
Subcontractor agrees that, unless otherwise indicated in this Subcontract, (a)
the prices herein do not include any state or local sales, use or other tax from
which an exemption is available for purposes of this Subcontract, and (b) the
prices herein include all other applicable federal, state and local taxes in
effect at the date of this Subcontract. Subcontractor agrees to accept any use
tax exemption certificates when supplied by ADL if acceptable to the taxing
authorities. In case it shall ever be determined that any tax included in the
prices herein was not required to be paid by Subcontractor, Subcontractor agrees
to notify ADL and to make prompt application for the refund thereof, to take all
proper steps to procure the same and when received to pay the same to ADL.
8. ASSIGNMENT OF CLAIMS
Subcontractor shall not assign any rights or claims under this Subcontract or
for breach thereof, without prior written consent of ADL. Attempted assignments
not having ADL approval shall be void.
In no event shall copies of this Subcontract, specification or other similar
documents relating to work under this Subcontract be furnished to any assignees
of claim arising under this Subcontract without the prior written consent of the
ADL Subcontract Administrator.
9. SUBCONTRACTING
None of the work to be performed by the Subcontractor under this Subcontract
shall be subcontracted without the prior written consent of ADL; however, this
limitation shall not apply to the purchase of standard commercial supplies or
raw material.
Page 3 of 5
10. CONFIDENTIAL UNDERSTANDING
In the performance of the work under this Subcontract, ADL and Subcontractor
(the parties) and their employees may be exposed to, or have contact with, or
knowledge of developments, research projects, manufacturing or trade secrets,
identification of clients or business confidences of the other party.
Accordingly, the parties agree to hold in confidence all such matters both
during and after completion of the work called for under this Subcontract and to
secure a like agreement from any of their personnel assigned to perform services
related to this Subcontract. Excluded from the foregoing restriction is
information which has become a part of the public domain, information which the
other party can reasonably show is in its possession at the time of disclosure
and was not acquired directly or indirectly from the other party, and
information received by either party from a third party having the legal right
to transmit the same. The obligations of confidentiality hereunder shall remain
in force for a period of five years after the date of termination or expiration
of this Subcontract.
11. WAIVER
The failure of ADL to insist upon the performance of any provision of this
Subcontract, to exercise any right or privilege granted to ADL under this
Subcontract shall not be construed as waiving any such provision, and the same
shall continue in force.
12. COMPLIANCE WITH LAWS/PERMITS
Subcontractor agrees to comply with the requirements of the Fair Labor Standards
Act of 1938, as amended, and of regulations and orders of the United States
Department of Labor under Section 14 thereof.
Except as otherwise directed by ADL, Subcontractor shall procure all necessary
permits or licenses and abide by all applicable laws, regulations and ordinances
required by the political subdivision in which the work and/or services under
this Subcontract is performed.
13. SUBCONTRACT SURVEILLANCE
Authorized representatives of ADL and/or the prime contractor shall have access
to Subcontractor's facilities in order to review progress and discuss problems
pertaining to the requirements of this Subcontract. Subcontractor shall provide
adequate information on Subcontract performance in response to reasonable
requests by ADL and/or the prime contractor.
Page 4 of 5
14. INSPECTION AND ACCEPTANCE
All material and work, including raw materials, component, and end products,
shall be subject to inspection and test by ADL and the Government to the extent
practicable at all times and places, and the plants of Subcontractor and its
subcontractors of any tier shall be subject to inspection by ADL and the
Government. The exercise of this right of inspection and test, however, shall in
no way relieve Subcontractor of its obligation to furnish all material and work
in strict accordance with this order. In case any material or work is found to
be defective, ADL shall have the right to reject, rework or sort the same or
require that it be corrected or replaced promptly, all at Subcontractor's
expense. If inspection and test are made on the premises of Subcontractor or any
subcontractor of Subcontractor, Subcontractor or such subcontractor shall
furnish without additional charge all reasonable facilities and assistance for
the safe and convenient inspections and tests required. All inspections and
tests shall be performed in such manner as not to delay the work unduly.
ADL shall inspect and provisionally accept the materials and services provided
under this Subcontract and shall advise Subcontractor of any defect or required
changes therein. In addition, the Contracting Officer under the prime contract
or his duly authorized representative is authorized to perform inspection and to
accept the materials and services provided under the prime contract, including
those provided under this Subcontract. Any provisional acceptance by ADL is
subject to final acceptance by the Government Contracting Officer.
Provided, in no event will the exercise of rights under this Article include
access to or observation of SCI's proprietary manufacturing processes. For
purposes of this Article, materials and services shall be considered defective
if there is a defect in the physical nature of any catalyst samples submitted by
SCI. Materials and services shall not be considered defective because of
catalyst performance failures, if SCI complied with industry standards of due
care in its work on such materials and services.
15. GOVERNMENT-FURNISHED PROPERTY
If any Government property is furnished to Subcontractor in connection with
performance of this order, title thereof shall remain in the Government and the
Government shall have access thereto, at all reasonable times. Subcontractor
shall return such property in the condition in which it was received, except for
reasonable wear and tear and except to the extent that such property has been
incorporated in material delivered under this order or has been consumed in
normal performance of this order. Subcontractors shall comply with the
provisions of FAR Part 45.
16. DISPUTES
Either party may litigate any dispute arising under or relating to this
Subcontract before any court of competent jurisdiction. Pending resolution of
any such dispute by settlement or by final judgment, the parties shall proceed
diligently with performance. Subcontractor's performance shall be in accordance
with ADL's written instructions. All references to disputes procedures in
Government clauses incorporated by reference shall be deemed to be superseded by
this clause.
Page 5 of 5
17. CHANGES
ADL may at any time, by a written notice, make changes in the specifications,
designs or drawings, samples or other description to which the articles are to
conform, in methods of shipment and packaging, place of delivery, or the amount
of ADL/Government-furnished property. If any such change causes an increase or
decrease in the cost of, or the time required for, the performance of any part
of the work under this order, whether changed or not changed by any such order,
an equitable adjustment shall be made in the price or delivery schedule, or
both, and this order modified in writing accordingly. Any claim by Subcontractor
for an adjustment must be made in writing within thirty (30) days of the receipt
of any such notice, provided, however, that ADL may, at its discretion, receive
and act upon any such claim so made at any time prior to final payment under
this order. Nothing in this clause shall excuse the Subcontractor from
proceeding without delay to perform this Subcontract as changed.
18. TERMINATION
(a) ADL may terminate this Subcontract, in whole or in part, in accordance with
the provisions of the Termination clause set forth in FAR 52.249-6 if
Subcontractor fails to comply with any of the provisions hereof, or if
Subcontractor becomes the subject of a proceeding under state or federal law for
relief of debtors or makes an assignment for the benefit of creditors. (b)
Without effecting its right to terminate this order under paragraph (a) hereof,
ADL may, for its convenience, terminate this Subcontract in whole or, from time
to time, in part, except the term "1 year" in paragraph (f) is changed to "6
months."
19. FOREIGN NATIONALS
RESERVED
__________________
Last Item
ATTACHMENT II - ADDITIONAL PROVISIONS
(Flow-down from DOE Cooperative Agreement No. DE-FCO2-99-EE50580)
The Federal Acquisition Regulation (FAR) clauses, Department of Energy
Regulations (DEAR) clauses set forth on the attached listing are hereby
incorporated by reference in this subcontract. All such clauses shall, with
respect to rights, duties and obligations of ADL and the Subcontractor
hereunder, be interpreted and construed in such manner as to recognize and give
effect to the contractual relationship between ADL and the Subcontractor under
this subcontract and the rights of the U.S. Government with respect thereto
under the Prime Contract from which such clauses are derived. As used therein
the terms "the Contractor" and equivalent terms shall mean the Subcontractor and
the terms "the Government" and "the Contracting Officer" shall include ADL and
ADL's authorized representative hereunder, respectively, except under those
clauses relating to the rights to audit or examine the Subcontractor's financial
records in which case the terms "the Government" and "the Contracting Officer"
shall mean the U.S. Government and the Contracting Officer under the Prime
Contract, respectively. The word "contract" and like terms shall mean this
subcontract.
Special Terms and Conditions for Financial Assistance Awards
The requirements of this attachment take precedence over all other requirements
of this award found in regulations, the general terms and conditions, DOE
orders, etc., except requirements of statutory law. Any apparent contradiction
of statutory law stated herein should be presumed to be in error until recipient
has sought and received clarification from the Contracting Officer.
1. PAYMENT OFFICE
N/A
2. FINANCE OFFICE
N/A
3. PAYMENT-
N/A
-2-
Payment under this award will be accomplished by the Payment Office
via ACH, an electronic funds transfer. A completed "Automated Clearing
House (ACH) Vendor Miscellaneous Payment Enrollment Form" must be on
file with the Finance Office prior to processing your payment.
4. DECONTAMINATION AND/OR DECOMMISSIONING D&D COSTS
Notwithstanding any other provisions of this Agreement, including but not
limited to FAR 31.205-31, when applicable, as incorporated by Financial
Assistance Rule 600.127(a), the Government shall not be responsible for or
have any obligation to the recipient for (i) Decontamination and/or
Decommissioning (D&D) of any of the Recipient's facilities, or (ii) any
costs which may be incurred by the Recipient in connection with the D&D of
any of its facilities due to the performance of the work under this
Agreement, whether said work was performed prior to or subsequent to the
effective date of this Agreement.
5. FEDERALLY-OWNED PROPERTY
If you acquire federally-owned property under this award whether
fabricated, furnished or purchased with Capital Equipment Funds, then a
listing of such property shall be submitted on DOE F 4300.3, Summary Report
of DOE-Owned Plant & Capital Equipment, to the Contracting Officer within
45 days after August 31 of each year and within 30 days after the project
period ends. The report must separately identify items which were
fabricated, furnished, or purchased with Capital Equipment funds under this
award.
Any Capital Equipment funds and the equipment to be purchased, fabricated,
or furnished with such funds are indicated on Page No. 2 of the Notice of
Financial Assistance Award.
6. NOTICE REGARDING PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS - SENSE
OF CONGRESS
It is the sense of the Congress that, to the greatest extent practicable,
all equipment and products purchased with funds made available under this
award should be American-made.
-3-
7. NOTICE REGARDING UNALLOWABLE COSTS AND LOBBYING ACTIVITIES
Recipients of financial assistance are cautioned to carefully review the
allowable cost and other provisions applicable to expenditures under their
particular award instruments. If financial assistance funds are spent for
purposes or in amounts inconsistent with the allowable cost or any other
provisions governing expenditures in an award instrument, the government
may pursue a number of remedies against the recipient, including in
appropriate circumstances, recovery of such funds, termination of the
award, suspension or debarment of the recipient from future awards, and
criminal prosecution for false statements.
Particular care should be taken by the recipient to comply with the
provisions prohibiting the expenditure of funds for lobbying and related
activities. Financial assistance awards may be used to describe and promote
the understanding of scientific and technical aspects of specific energy
technologies, but not to encourage or support political activities such as
the collection and dissemination of information related to potential,
planned or pending legislation.
8. ADDITIONAL PROVISIONS
If the appropriation symbol contained in Block 14.a. of the Notice of
Financial Assistance Award for this award is listed below, paragraph 8.a.
is applicable to this award, otherwise paragraph 8.b. applies:
89X0213.91 89X0215.91 89X0218.91
89X0214.91 89X0216.91 89X0235.91
a. Department of Interior Appropriations Act Funding:
1. Lobbying Restriction (Department of Interior & Related Agencies
Appropriations Act, 1999)
The contractor or awardee agrees that none of the funds obligated
on this award shall be made available for any activity or the
publication or distribution of literature that in any way tends
to promote public support or opposition to any legislative
proposal on which Congressional action is not complete. This
restriction is in addition to those prescribed elsewhere in
statute and regulation.
-4-
2. Compliance With Buy American Act
In accepting this award, the recipient agrees to comply with
sections 2 through 4 of the Act of March 3, 1933 (41 U.S.C.
10a-10c, popularly known as the "Buy American Act"). The
recipient should review the provisions of the Act to ensure that
expenditures made under this award are in accordance with it.
b. Energy & Water Development Appropriations Act Funding:
Lobbying Restriction (Energy and Water Development Appropriations Act,
1999)
The contractor or awardee agrees that none of the funds obligated
on this award shall be expended, directly or indirectly, to
influence congressional action on any legislation or
appropriation matters pending before Congress, other than to
communicate to Members of Congress as described in 18 U.S.C.
1913. This restriction is in addition to those prescribed
elsewhere in statute and regulation.
9. REPORTING
Failure to comply with the reporting requirements contained in this
award will be considered a material noncompliance with the terms of
the award. Noncompliance may result in a withholding of future
payments, suspension or termination of the current award, and
withholding of future awards. A willful failure to perform, a history
of failure to perform, or of unsatisfactory performance of this and/or
other financial assistance awards, may also result in a debarment
action to preclude future awards by Federal agencies.
ATTACHMENT III
ADDITIONAL SPECIAL PROVISIONS
(Flow-down from DOE Cooperative Agreement No. DE-FCO2-99-EE50580)
The Federal Acquisition Regulation (FAR) clauses, Department of Energy
Regulations (DEAR) clauses set forth on the attached listing are hereby
incorporated by reference in this subcontract. All such clauses shall, with
respect to rights, duties and obligations of ADL and the Subcontractor
hereunder, be interpreted and construed in such manner as to recognize and give
effect to the contractual relationship between ADL and the Subcontractor under
this subcontract and the rights of the U.S. Government with respect thereto
under the Prime Contract from which such clauses are derived. As used therein
the terms "the Contractor" and equivalent terms shall mean the Subcontractor and
the terms "the Government" and "the Contracting Officer" shall include ADL and
ADL's authorized representative hereunder, respectively, except under those
clauses relating to the rights to audit or examine the Subcontractor's financial
records in which case the terms "the Government" and "the Contracting Officer"
shall mean the U.S. Government and the Contracting Officer under the Prime
Contract, respectively. The word "contract" and like terms shall mean this
subcontract.
ADDITIONAL SPECIAL PROVISIONS
TABLE OF CONTENTS
CLAUSE SUBJECT PAGE
1. Cost Share Contributions ............................ 1
2. Fee ................................................. 1
3. Statement of Substantial Involvement ................ 1
4. Technical Direction ................................. 2
5. Continuation of Work ................................ 4
6. Restriction on Transfer of Fuel Cell ................ 4
Technology to Foreign Entities
7. Ceiling on Rate for Allowable Labor.................. 4
Indirect Costs to be Reimbursed by the Government
8. Partial Funding ..................................... 4
GOV'T/DOE = ADL
PARTICIPANT = SCI
CONTRACTING OFFICER/DOE PROJECT OFFICER = ADL
ADDITIONAL SPECIAL PROVISIONS
1. COST SHARE CONTRIBUTIONS
It is the intention of the Government and the Participant to share the
allowable and allocable costs of performance of the work during this
Agreement as set forth herein.
The Government's contribution and support for this Agreement during the
project period Oct 1, 1999 through January 14, 2003 will be $759,341. The
Participant will contribute $408,877 toward the aforementioned project
period. Notwithstanding any other provision in this Agreement, it is the
intention of the Government and the Participant to share the total
allowable and allocable costs of performance during the project period on a
65 percent (Government) and 35 percent (Participant) basis. It is
understood by the parties that the DOE share of this project period is
$759,341 and notwithstanding any other provision in this Agreement to the
contrary, no additional Federal funding will be provided notwithstanding
the total cost of the project at completion.
In keeping with the cost share requirements set forth under this
cooperative agreement the following cost sharing is necessary under each
Topic:
Development of an Integrated State-of-the-Art Fuel Cell Power System--
Topic 1.J. (Cost Share 35%)
In the event the project is terminated early or not funded to its
completion, the Participant understands and specifically agrees that the
Government is not waiving the Participant's requisite cost share
requirement and that in the event the project is not funded to its
completion or otherwise terminated prior to completion, the Participant is
still obligated to meet its requisite cost share. Participant further
agrees that upon termination or at the completion of the project, upon
notification by the Government, it will promptly submit to the Government
all such sums due and owing to satisfy its requisite cost share. Failure to
make such payment shall result in the Government undertaking collection
action against the Participant. This understanding and agreement shall also
apply to any additional budget periods within the project period wherein
the Participant's aggregate cost share contribution to that date has not
met the requisite cost share.
2. FEE
No fee shall be paid to the Recipient.
3. STATEMENT OF SUBSTANTIAL INVOLVEMENT
The Department of Energy (Department, DOE) will be substantially involved
in all Tasks of the Statement of Work. The Department will collaborate with
the participant in evaluating, accepting, and achieving the milestones for
research as proposed by the respondent.
1
The Department will provide technical direction to the overall program, as well
as the individual program elements as it is determined to be necessary and
appropriate by DOE. The Department will participate during the full duration of
the project, and will have continuing rights to conduct ongoing negotiations
with the participant regarding the technical direction of the work conducted
under this Agreement. The Department staff members will attend meetings and
participate in the formation and direction of scope of the key development
activities. The DOE Project Officer will participate in the development, review
and approval of all proposed statements of work, including subcontractor
statements of work, prior to the execution of any subcontract. The Department
will review technical progress reports and provide input to these reports as
deemed necessary. In addition, the Department will have the right to have
National Laboratories or selected private organizations perform independent
tests and evaluations of the cooperative agreement's deliverables, thus
providing an additional measure of technical progress.
The Department may collaborate with the participant in the allocation of funds
budgeted for this Agreement. Further, as work progresses, funding needs may
change and depending upon availability of funds, the Department may collaborate
with the participant to reallocate funds budgeted between the different programs
and projects.
The Department will thus be actively monitoring all phases of the participant's
research and development activities, including participation in the
participant's reviews of its contractor's activities and review of the
contractor's reports to the participant. The Department will actively
participate in the participant's process of reviewing and approving each phase
of the proposed programs and projects.
The substantial involvement by the Department under this Agreement will remain
in effect for the term of the cooperative agreement award unless otherwise
amended in writing by the Contracting Officer. Moreover, this statement of
substantial involvement by the Department does not increase the Department of
Energy's liability under the Agreement award.
4. TECHNICAL DIRECTION
A. The work to be performed by the Participant under this Cooperative
Agreement is subject to the surveillance and written Technical
Direction of a "DOE Project Officer." The term "Technical Direction"
is defined to include, without limitation, the following:
1. Directions to the Participant which redirects the work effort,
shifts work emphasis between work areas or tasks, require pursuit
of certain lines of inquiry, fill in details or otherwise provide
technical guidance to the Participant in order to accomplish the
tasks and requirements stated in the Statement of Work as
contained in the agreement.
2. Provision of information to the Participant which assists in the
interpretation of drawings, specifications or technical portions
of the Statement of Work as contained in the Agreement.
2
3. Review and, where required by the Cooperative Agreement, approval
of technical reports, drawings, specifications or technical
information to be delivered by the Participant to DOE under the
Cooperative Agreement.
4. The DOE Project Officer shall monitor the Participant's
performance with respect to compliance with the requirements of
this Cooperative Agreement.
B. Technical direction and management surveillance shall not impose tasks
or requirements upon the Participant additional to or different from
the tasks and requirements stated in the Statement of Work of this
Agreement. The Technical Direction to be valid:
1. Must be issued in writing consistent with the tasks and
requirements stated in the Statement of Work of this Agreement;
and
2. May not:
a. constitute an assignment of additional work outside the
tasks and requirements stated in the Statement of Work of
this Agreement;
b. in any manner cause an increase or decrease in the total
estimated project cost or the time required for project
performance;
c. change any of the expressed terms, conditions or
specification of the Cooperative Agreement; or
d. accept non-conforming work.
C. The Participant shall proceed promptly with the performance of
Technical Directions duly issued by the DOE Project Officer in the
manner prescribed by paragraph B. above and which are within his
authority under the provisions of paragraph A. above; provided,
however, that the Participant shall immediately cease the performance
of any Technical Direction upon receipt of a written instruction to
that effect from the Contracting Officer.
D. If in the opinion of the Participant any Technical Direction issued by
the DOE Project Officer is within one of the categories as defined in
B. 2. (a) through (d) above, the Participant shall not proceed but
shall notify the Contracting Officer in writing within five working
days after the receipt of any such Technical Direction and shall
request the Contracting Officer to rescind such direction or mutually
agree to modify the agreement accordingly.
E. The only persons authorized to give Technical Direction to the
Participant under this Agreement are the Contracting Officer and any
"DOE Project Officer." Any action taken by the Participant in response
to any direction given by any person other than the Contracting
Officer or DOE Project Officer shall not be binding upon the
Government.
3
5. CONTINUATION OF WORK
There will be an evaluation of the progress near the end of each year of
the work to determine to either continue, redirect, or terminate the
project.
6. RESTRICTION OF TRANSFER OF FUEL CELL TECHNOLOGY TO FOREIGN ENTITIES
It is agreed that the Participant shall obtain adequate recognition of the
United States support for the technology developed under this Program in
any contracts, assistance, licenses, or other agreements which involve the
transfer to foreign entities of the fuel cell technology developed in whole
or in part at Government expense. The Participant agrees to notify DOE, as
represented by DOE Patent Counsel, in writing, of the adequate recognition
obtained prior to entering into any such contracts, assistance, licenses,
or other agreements. The Participant shall not enter into any such
contracts, assistance, licenses, or other agreements without the
concurrence shall be at the sole discretion of DOE and is not subject to
the Disputes or Appeals (at 10 CFR 600.22) or otherwise subject to
litigation under the Contracts Disputes Act of 1978 (41 U.S.C. 601 et.
seq.). The determination shall be in writing and shall be furnished to the
Participant by the Contracting Officer. Examples of such an adequate
recognition could include: (1) a commitment to manufacture in the U.S.A.,
(2) a requirement to reimburse the U.S. Government for its R&D costs,
and/or (3) a commitment to jointly sponsor the R&D program.
7. CEILING ON RATES FOR ALLOWABLE LABOR INDIRECT COSTS TO BE REIMBURSED BY THE
GOVERNMENT
Reimbursement to the Participant for labor indirect costs shall be subject
to a ceiling rate of * % of allowable Direct Labor and Fringe Benefits
costs. Any and all labor overhead costs in excess the aforesaid ceiling
rate shall be unallowable under this agreement and shall be absorbed by the
Participant without reimbursement by the Government under this agreement or
any other Government award.
8. PARTIAL FUNDING
This cooperative agreement is partially funded on a cost reimbursement
basis without fee or profit. The total estimated cost of the project to be
conducted during the current budget period is $1,168,218 of which the
estimated cost to DOE is $759,341 and the estimated cost to the Participant
is $408,877. The Cumulative DOE Obligation for the current budget period is
$292,500.
* Whatever rate was included in SCI's cost proposal on which this award is
based.
4
ATTACHMENT III.x.
XXX ASSISTANCE REGULATIONS, 10 CFR PART-600, AS AMENDED
SUBPARTS A AND B.
These Regulations are Incorporated by Reference
The Department of Energy Assistance Regulations as set forth in 10 CFR Part-600,
as Amended Subparts A and B are hereby incorporated by reference in this
subcontract. All such clauses shall, with respect to rights, duties and
obligations of ADL and the Subcontractor hereunder, be interpreted and construed
in such manner as to recognize and give effect to the contractual relationship
between ADL and the Subcontractor under this subcontract and the rights of the
U.S. Government with respect thereto under the Prime Contract from which such
clauses are derived. As used therein the terms "the Contractor" and equivalent
terms shall mean the Subcontractor and the terms "the Government" and "the
Contracting Officer" shall include ADL and ADL's authorized representative
hereunder, respectively, except under those clauses relating to the rights to
audit or examine the Subcontractor's financial records in which case the terms
"the Government" and "the Contracting Officer" shall mean the U.S. Government
and the Contracting Officer under the Prime Contract, respectively. The word
"contract" and like terms shall mean this subcontract.
ATTACHMENT IV
FEDERAL ASSISTANCE REPORTING CHECKLIST
DATED 1/28/99
(Flow-down from DOE Cooperative Agreement No. DE-FCO2-99-EE50580)
The Federal Acquisition Regulation (FAR) clauses, Department of Energy
Regulations (DEAR) clauses set forth on the attached listing are hereby
incorporated by reference in this subcontract. All such clauses shall, with
respect to rights, duties and obligations of ADL and the Subcontractor
hereunder, be interpreted and construed in such manner as to recognize and give
effect to the contractual relationship between ADL and the Subcontractor under
this subcontract and the rights of the U.S. Government with respect thereto
under the Prime Contract from which such clauses are derived. As used therein
the terms "the Contractor" and equivalent terms shall mean the Subcontractor and
the terms "the Government" and "the Contracting Officer" shall include ADL and
Ad's authorized representative hereunder, respectively, except under those
clauses relating to the rights to audit or examine the Subcontractor's financial
records in which case the terms "the Government" and "the Contracting Officer"
shall mean the U.S. Government and the Contracting Officer under the Prime
Contract, respectively. The word "contract" and like terms shall mean this
subcontract.
U.S. Department of Energy
FEDERAL ASSISTANCE REPORTING CHECKLIST
--------------------------------------------------------------------------------------------------------------------
Identification Number: DE-FCO2-00XX00000 2. Program/Project Title
Development of Fuel Processor,
Durability Demonstration and
10kW System
--------------------------------------------------------------------------------------------------------------------
Recipient: Xxxxxx X. Xxxxxx, Inc.
--------------------------------------------------------------------------------------------------------------------
Reporting Requirements: Frequency No. of Copies Addressees
-----------------------------------------------------
GRAM/PROJECT MANAGEMENT REPORTING
Program Management Plan, See Attachment 1 Y Original + 2 copies Orig + 2cys, B
DOE F 4600.3A, "Milestone Log"
D0E F 4600.4, "Federal Assistance Budget Information"
DOE F 4600.5, "Federal Assistance Management Summary Report"
D0E F 4600.6, "Federal Assistance Program/Project Status Report"
SF-269, "Financial Status Report" (Long Form) Q Original + 1 Copy Orig A, (1) B
FINANCIAL INFORMATION REPORTING
DOE F 1430.22, Notice of Energy RD&D Project
Technical Progress Report Y* Original + 2 copies Orig + 2cys B
Topical Report A Original + 2 copies Orig + 2cys B
Final Technical Report F** Original + 2 copies Orig + 1 A
(1) B
--------------------------------------------------------------------------------------------------------------------
FREQUENCY CODES AND DUE DATES:
- As Necessary: within 5 calendar days after events.
- Final: 90 calendar days after the performance of the effort ends.
- Quarterly: within 30 days after end of calendar quarter or portion thereof.
- One time after project starts; within 30 days after award.
- Required with proposals or the application or with significant planning
changes.
- Year1y: 30 days after the and of program year. (Financial Status Reports 90
days).
- Semiannually: within 30 days after end of program fiscal half year.
--------------------------------------------------------------------------------
Special Instructions:
Technical Progress Report: An original and 2 copies of the report must be
submitted annually. The report must be accompanied by two copies of DOE F 241.1.
"Announcement of U.S. Department of Energy (DOE) Scientific and Technical
Information (STI)."
Final Report: An original and 2 copies must be submitted within 90 days after
the expiration date of the total Performance period, if the project is not to be
renewed or extended, and must be accompanied by two copies of DOE F 1.
"Announcement of U.S. Department of Energy (DOE) Scientific and Technical
Information (STI)."
FINAL REPORTS TO: A. Contract Specialist, ACQ B. See Block No. 11 of the
U.S. Department of Energy face page
Chicago Operations Office Department of Energy
0000 Xxxxx Xxxx Xxxxxx 0000 Xxxxxxxxxxxx Xxxxxx. X.X.
Xxxxxxx, Xxxxxxxx 00000 Xxxxxxxxxx, X.X. 00000-0000
JAN 28 1999
--------------------------------------------------------------------------------
Prepared by: (Signature and Date) /s/ Xxxxxx X. Xxxxxx
--------------------------------------------------------------------------------
ATTACHMENT 1
PROGRAM MANAGEMENT PLAN GUIDELINES
The following guidelines indicate the information to be prepared in submitting a
Program Management Plan. As a minimum, the Program Management Plan shall contain
the following sections:
1. Purpose of R&D Effort
The Participant shall briefly describe the overall purpose, objectives and
scope of the R&D effort described in the plan.
2. Remaining Technology Development Areas
The Participant shall clearly outline the remaining problem areas in
technology development in a few descriptive paragraphs. These areas will be
described in order of importance and priority.
3. Description of Tasks
The Participant shall provide a detailed work breakdown structure (WBS)
defining different areas of activity as discrete tasks and the
interrelation among the tasks. A written description of each task including
objective, planned activities and clearly defined milestones shall also be
provided. The Awardee shall also provide the following:
a. A schedule and milestone plan
b. A cost plan by task and month
4. Schedule
The Participant shall prepare a baseline detailed activity schedule
(critical path network schedule or equivalent).
5. Deliverables
In addition to the hardware to be delivered, the Participant shall provide
a description of the reports to be supplied under the agreement and provide
a schedule of their delivery dates.
ATTACHMENT V
INTELLECTUAL PROPERTY PROVISIONS--
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
LARGE BUSINESS, STATE AND LOCAL GOVERNMENTS,
AND FOREIGN ORGANIZATIONS
(Flow-down from DOE Cooperative Agreement No. DE-FCO2-99-EE50580)
The Federal Acquisition Regulation (FAR) clauses, Department of Energy
Regulations (DEAR) clauses set forth on the attached listing are hereby
incorporated by reference in this subcontract. All such clauses shall, with
respect to rights, duties and obligations of ADL and the Subcontractor
hereunder, be interpreted and construed in such manner as to recognize and give
effect to the contractual relationship between ADL and the Subcontractor under
this subcontract and the rights of the U.S. Government with respect thereto
under the Prime Contract from which such clauses are derived. As used therein
the terms "the Contractor" and equivalent terms shall mean the Subcontractor and
the terms "the Government" and "the Contracting Officer" shall include ADL and
ADL's authorized representative hereunder, respectively, except under those
clauses relating to the rights to audit or examine the Subcontractor's financial
records in which case the terms "the Government" and "the Contracting Officer"
shall mean the U.S. Government and the Contracting Officer under the Prime
Contract, respectively. The word "contract" and like terms shall mean this
subcontract.
Intellectual Property Provisions
Research, Development, or Demonstration
Large Business, State and Local Governments, and Foreign Organizations
01. FAR 52.227-1 Authorization and Consent (JUL 1995), Alternate I
02. FAR 52.227-2 Notice and Assistance Regarding Patent and Copyright
Infringement (AUG 1996)
This clause is not
applicable if the
award is for less
than $100,000.
03. FAR 52.227-14 Rights in Data - General, as modified by DEAR 927.409
(Effective Apr 1998)
If this award requires the use or delivery of limited
rights data and/or restricted computer software,
Alternates II and III are incorporated, unless
modified upon recommendation of Patent Counsel.
04. FAR 52.227-16 Additional Data Requirements (JUN 1987)
05. FAR 52.227-23 Rights to Proposal Data (Technical) (JUN 1987)
06. DEAR 952.227-9 Refund of Royalties (MAR 1995)
07. DEAR 952.227-13 Patent Rights - Acquisition by the Government (MAR 1995)
Attachment 1 (for reference only): Patent Rights - Retention by Contractor
(Short Form) (MAR 1995); DEAR 952.227-11
LB-498
01. FAR 52.227-1 Authorization and Consent; Alternate I
AUTHORIZATION AND CONSENT (JUL 1995)
(a) The Government authorizes and consents to all use and manufacture of any
invention described in and covered by a United States patent in the performance
of this contract or any subcontract at any tier.
(b) The Contractor agrees to include, and require inclusion of, this clause,
suitably modified to identify the parties, in all subcontracts at any tier for
supplies or services (including construction, architect-engineer services, and
materials, supplies, models, samples, and design or testing services expected to
exceed the simplified acquisition threshold); however, omission of this clause
from any subcontract, including those at or below the simplified acquisition
threshold, does not affect this authorization and consent.
(End of clause)
02. FAR 52.227-2 Notice and Assistance Regarding Patent and Copyright
Infringement
NOTICE AND ASSISTANCE REGARDING PATENT AND COPYRIGHT INFRINGEMENT (AUG
1996)
(a) The Contractor shall report to the Contracting Officer, promptly and in
reasonable written detail, each notice or claim of patent or copyright
infringement based on the performance of this contract of which the Contractor
has knowledge.
(b) In the event of any claim or suit against the Government on account of any
alleged patent or copyright infringement arising out of the performance of this
contract or out of the use of any supplies furnished or work or services
performed under this contract, the Contractor shall furnish to the Government,
when requested by the Contracting Officer, all evidence and information in
possession of the Contractor pertaining to such suit or claim. Such evidence and
information shall be furnished at the expense of the Government except where the
Contractor has agreed to indemnify the Government.
(c) The Contractor agrees to include, and require inclusion of, this clause in
all subcontracts at any tier for supplies or services (including construction
and architect-engineer subcontracts and those for material, supplies, models,
samples, or design or testing services) expected to exceed the simplified
acquisition threshold at FAR 2.101.
(End of clause)
03. FAR 52.227-14 Rights in Data - General, as modified by DEAR 927.409
(Effective Apr 1998)
RIGHTS IN DATA - GENERAL (JUN 1987)
(a) Definitions.
(1) Computer data bases, as used in this clause, means a collection of data
in a form capable of, and for the purpose of, being stored in, processed, and
operated on by a computer. The term does not include computer software.
(2) Computer software, as used in this clause, means (i) computer programs
which are data comprising a series of instructions, rules, routines, or
statements, regardless of the media in which recorded, that allow or cause a
computer to perform a specific operation or series of operations and (ii) data
comprising source code listings, design details, algorithms, processes, flow
charts, formulae, and related material that would enable the computer program to
be produced, created, or compiled. The term does not include computer data
bases.
(3) Data, as used in this clause, means recorded information, regardless of
form or the media on which it may be recorded. The term includes technical
data and computer software. For the purposes of this clause, the term does not
include data incidental to the administration of this contract, such as
financial, administrative, cost and pricing, or management information.
(4) Form, fit, and function data, as used in this clause, means data
relating to items, components, or Co processes that are sufficient to enable
physical and functional interchangeability, as well as data identifying source,
size, configuration, mating, and attachment characteristics, functional
characteristics, and performance requirements; except that for computer software
it means data identifying source, functional characteristics, and
1
performance requirements but specifically excludes the source code, algorithm,
process, formulae and flow charts of the software.
(5) Limited rights data, as used in this clause, means data, other than
computer software, developed at private expense that embody trade secrets or are
commercial or financial and confidential or privileged. The Government's rights
to use, duplicate, or disclose limited rights data are as set forth in the
Limited Rights Notice of subparagraph (g)(2) of this section if included in this
clause.
(6) Restricted computer software, as used in this clause, means computer
software developed at private expense and that is a trade secret; is commercial
or financial and is confidential or privileged; or is published copyrighted
computer software, including minor modifications of any such computer software.
The Government's rights to use, duplicate, or disclose restricted computer
software are as set forth in the Restricted Rights Notice of subparagraph (g)(3)
of this section if included in this clause.
(7) Technical data, as used in this clause, means recorded data, regardless
of form or characteristic, that are of a scientific or technical nature.
Technical data does not include computer software, but does include manuals and
instructional materials and technical data formatted as a computer data base.
(8) Unlimited rights, as used in this clause, means the rights of the
Government to use, disclose, reproduce, prepare derivative works, distribute
copies to the public, including by electronic means, and perform publicly and
display publicly, in any manner, including by electronic means, and for any
purpose whatsoever, and to have or permit others to do so.
(b) Allocation of rights.
(1) Except as provided in paragraph (c) below regarding copyright, the
Government shall have unlimited rights in:
(i) Data first produced in the performance of this contract;
(ii) Form, fit, and function data delivered under this contract;
(iii) Data delivered under this contract (except for restricted
computer software) that constitute manuals or instructional and training
material for installation, operation, or routine maintenance and repair
items, components, or processes delivered or furnished for use under this
contract; and
(iv) All other data delivered under this contract unless provided
otherwise for limited rights data or restricted computer software in
accordance with paragraph (g) below.
(2) The Contractor shall have the right to:
(i) Use, release to others, reproduce, distribute, or publish any data
first produced or specifically used by the Contractor in the performance of
this contract, unless provided otherwise in paragraph (d) below;
(ii) Protect from unauthorized disclosure and use those data which are
limited rights data or restricted computer software to the extent provided
in paragraph (g) below;
(iii) Substantiate use of, add or correct limited rights, restricted
rights, or copyright notices and to take other appropriate action, in
accordance with paragraphs (e) and (f) below; and
(iv) Establish claim to copyright subsisting in data first produced in
the performance of this contract to the extent provided in subparagraph
(c)(1) below.
(c) Copyright.
(1) Data first produced in the performance of this contract. Unless
provided otherwise in subparagraph (d) below, the Contractor may establish,
without prior approval of the Contracting Officer, claim to copyright subsisting
in scientific and technical articles based on or containing data first produced
in the performance of this contract and published in academic, technical or
professional journals, symposia proceedings, or similar works. The prior,
express written permission of the Contracting Officer is required to establish
claim to copyright subsisting in all other data first produced in the
performance of this contract. When claim to copyright is made, the Contractor
shall affix the applicable copyright notices of 17 U.S.C. 401 or 402 and
acknowledgment of Government sponsorship (including contract number) to the data
when such data are delivered to the Government, as well as when the data are
published or deposited for registration as a published work in the U.S.
Copyright Office. For data other than computer software the Contractor grants to
the Government, and others acting on its behalf, a paid-up, nonexclusive,
irrevocable worldwide license in such copyrighted data to reproduce, prepare
derivative works, distribute copies to the public, and perform publicly and
display publicly, by or on behalf of the Government. For computer software, the
Contractor grants to the Government and others acting in its behalf, a paid-up
nonexclusive, irrevocable worldwide license in such copyrighted computer
software to reproduce, prepare derivative works, and perform publicly and
display publicly by or on behalf of the Government.
(2) Data not first produced in the performance of this contract. The
Contractor shall not, without prior written permission of the Contracting
Officer, incorporate in data delivered under this contract any data not first
produced in the performance of this contract and which contains the copyright
notice of 17 U.S.C. 401 and 402,
2
unless the Contractor identifies such data and grants to the Government, or
acquires on its behalf, a license of the same scope as set forth in subparagraph
(1) above; provided, however, that if such data are computer software the
Government shall acquire a copyright license as set forth in subparagraph (g)(3)
below if included in this contract or as otherwise may be provided in a
collateral agreement incorporated in or made part of this contract.
(3) Removal of copyright notices. The Government agrees not to remove any
copyright notices place on data pursuant to this paragraph (c), and to include
such notices on all reproductions of the data.
(d) Release, publication and use of data.
(1) The Contractor shall have the right to use, release to others,
reproduce, distribute, or publish any data first produced or specifically used
by the Contractor in the performance of this contract, except to the extent such
data may be subject to the Federal export control or national security laws or
regulations, or unless otherwise provided below in this paragraph or expressly
set forth in this contract.
(2) The Contractor agrees that to the extent it receives or is given access
to data necessary for the performance of this contract which contain restrictive
markings, the Contractor shall treat the data in accordance with such markings
unless otherwise specifically authorized in writing by the Contracting Officer.
(3) The Contractor agrees not to assert copyright in computer software
first produced in the performance of this contract without prior written
permission of the DOE Patent Counsel assisting the contracting activity. Where
such permission is granted, the Patent Counsel shall specify appropriate terms,
conditions, and submission requirements to assure utilization, dissemination,
and commercialization of the data. The Contractor, when requested, shall
promptly deliver to Patent Counsel a duly executed and approved instrument fully
confirmatory of all rights to which the Government is entitled.
(e) Unauthorized marking of data.
(1) Notwithstanding any other provisions of this contract concerning
inspection or acceptance, if any data delivered under this contract are marked
with the notices specified in subparagraphs (g)(2) or (g)(3) below and use of
such is not authorized by this clause, or if such data bears any other
restrictive or limiting markings not authorized by this contract, the
Contracting Officer may at any time either return the data to the Contractor, or
cancel or ignore the markings. However, the following procedures shall apply
prior to canceling or ignoring the markings.
(i) The Contracting Officer shall make written inquiry to the
contractor affording the Contractor 30 days from receipt of the inquiry to
provide written justification to substantiate the propriety of the
markings;
(ii) If the Contractor fails to respond or fails to provide written
justification to substantiate the propriety of the markings within the
30-day period (or a longer time not exceeding 90 days approved in writing
by the Contracting Officer for good cause shown), the Government shall have
the right to cancel or ignore the markings at any time after said period
and the data will not longer be made subject to any disclosure
prohibitions.
(iii) If the Contractor provides written justification to substantiate
the propriety of the markings within the period set in subdivision (i)
above, the Contracting Officer shall consider such written justification
and determine whether or not the markings are to be canceled or ignore. If
the Contracting Officer determines that the markings are authorized, the
Contractor shall be so notified in writing. If the Contracting Officer
determines, with concurrence of the Head of the Contracting Activity, that
the markings are not authorized, the Contracting Officer shall furnish the
Contractor a written determination, which determination shall become the
final agency decision regarding the appropriateness of the markings unless
the Contractor files suit in a court of competent jurisdiction within 90
days of receipt of the Contracting Officers decision. The Government shall
continue to abide by the markings under this subdivision (iii) until final
resolution of the matter either by the Contracting Officers determination
becoming final (in which instance the Government shall thereafter have the
right to cancel or ignore the markings at any time and the data will no
longer be made subject to any disclosure prohibitions), or by final
disposition of the matter by court decision if suit is filed.
(2) The time limits in the procedures set forth in subparagraph (1) above
may be modified in accordance with agency regulations implementing the Freedom
of Information Act (5 U.S.C. 552) if necessary to respond to a request
thereunder.
(3) This paragraph (e) does not apply if this contract is for a major
system or for support of a major system by a civilian agency other than NASA
and the U.S. Coast Guard subject to the provisions of Title III of the Federal
Property and Administrative Services Act of 1949.
(4) Except to the extent the Government's action occurs as the result of
final disposition of the matter by a court of competent jurisdiction, the
Contractor is not precluded by this paragraph (e) from bringing a claim under
the Contract Disputes Act, including pursuant to the Disputes clause of this
contract, as applicable, that may arise as the result of the Government removing
or ignoring authorized markings on data delivered under this contract.
3
(f) Omitted or incorrect markings.
(1) Data delivered to the Government without either the limited rights
or restricted rights notice as authorized by paragraph (g) below, or the
copyright notice required by paragraph (c) above, shall be deemed to have
been furnished with unlimited rights, and the Government assumes no
liability for disclosure, use, or reproduction of such data. However, to
the extent the data has not been disclosed without restriction outside the
Government, the Contractor may request, within 6 months (or a longer time
approved by the Contracting Officer for good cause shown) after delivery of
such data, permission to have notices placed on qualifying data at the
Contractor's expense, and the Contracting Officer may agree to do so if the
Contractor:
(i) Identifies the data to which the omitted notice is to be applied;
(ii) Demonstrates that the omission of the notice was inadvertent;
(iii) Establishes that the use of the proposed notice is authorized;
and
(iv) Acknowledges that the Government has no liability with respect to
the disclosure, use, or reproduction of any such data made prior to the
addition of the notice or resulting from the omission of the notice.
(2) The Contracting Officer may also (i) permit correction at the
Contractors expense of incorrect notices if the Contractor identifies the data
on which correction of the notice is to be made, and demonstrates that the
correct notice is authorized, or (ii) correct any incorrect notices.
(g) Protection of limited rights data and restricted computer software.
(1) When data other than that listed in subparagraphs (b)(1)(i), (ii), and
(iii) above are specified to be delivered under this contract and qualify as
either limited rights data or restricted computer software, if the Contractor
desires to continue protection of such data, the Contractor shall withhold such
data and not furnish them to the Government under this Contract. As a condition
to this withholding, the Contractor shall identify the data being withheld and
furnish form, fit, and function data in lieu thereof. Limited rights data that
are formatted as a computer data base for delivery to the Government is to be
treated as limited rights data and not restricted computer software.
(2) [Reserved.]
(3) [Reserved.]
(h) Subcontracting.
The Contractor has the responsibility to obtain from its subcontractors all
data and rights therein necessary to fulfill the Contractors obligations to the
Government under this contract. If a subcontractor refuses to accept terms
affording the Government such rights, the Contractor shall promptly bring such
refusal to the attention of the Contracting Officer and not proceed with
subcontract award without further authorization.
(i) Relationship to patents.
Nothing contained in this clause shall imply a license to the Government
under any patent or be construed as affecting the scope of any license or other
right otherwise granted to the Government.
(j) The Contractor agrees, except as may be otherwise specified in this contract
for specific data items listed as not subject to this paragraph, that the
Contracting Officer or an authorized representative may, up to three years after
acceptance of all items to be delivered under this contract, inspect at the
Contractor's facility any data withheld pursuant to paragraph (g)(l) above, for
purposes of verifying the Contractor's assertion pertaining to the limited
rights or restricted rights status of the data or for evaluating work
performance. Where the Contractor whose data are to be inspected demonstrates to
the Contracting Officer that there would be a possible conflict of interest if
the inspection where made by a particular representative, the Contracting
Officer shall designate an alternate inspector.
(End of clause)
Alternate II (Jun 1987)
(g)(2) Notwithstanding subparagraph (g)(1) of this clause, the contract may
identify and specify the delivery of limited rights data, or the Contracting
Officer may require by written request the delivery of limited rights data that
has been withheld or would otherwise be withholdable. If delivery of such data
is so required, the Contractor
4
may affix the following "Limited Rights Notice" to the data and the Government
will thereafter treat the data, subject to the provisions of paragraphs (e) and
(f) of this clause, in accordance with such Notice:
LIMITED RIGHTS NOTICE (JUN 1987)
(a) These data are submitted with limited rights under Government contract
No. _____________ (and subcontract No. ___________, if appropriate). These data
may be reproduced and used by the Government with the express limitation that
they will not, without written permission of the Contractor, be used for
purposes of manufacture nor disclosed outside the Government; except that the
Government may disclose these data outside the Government for the following
purposes, if any, provided that the Government makes such disclosure subject to
prohibition against further use and disclosure:
-[Agencies may list additional purposes as set forth in 27.404(d)(1) or if
none, so state]
(b) This Notice shall be marked on any reproduction of these data, in whole
or in part.
(End of notice)
Alternate III (Jun 1987)
(g)(3)Q) Notwithstanding subparagraph (g)(1) of this clause, the contract
may identify and specify the delivery of restricted computer software, or the
Contracting Officer may require by written request the delivery of restricted
computer software that has been withheld or would otherwise be withholdable. If
delivery of such computer software is so required, the Contractor may affix the
following "Restricted Rights Notice" to the computer software and the Government
will thereafter treat the computer software, subject to paragraphs (e) and (1)
of this clause, in accordance with the Notice:
RESTRICTED RIGHTS NOTICE (JUN 1987)
(a) This computer software is submitted with restricted rights under
Government Contract No. ____________ (and subcontract ________, if appropriate).
It may not be used, reproduced, or disclosed by the Government except as
provided in paragraph (b) of this Notice or as otherwise expressly stated in the
contract.
(b) This computer software may be:
(1) Used or copied for use in or with the computer or computers for
which it was acquired, including use at any Government installation to
which such computer or computers may be transferred;
(2) Used or copied for use in a backup computer if any computer for
which it was acquired is inoperative;
(3) Reproduced for safekeeping (archives) or backup purposes;
(4) Modified, adapted, or combined with other computer software,
provided that the modified, combined, or adapted portions of the derivative
software incorporating restricted computer software are made subject to the
same restricted rights;
(5) Disclosed to and reproduced for use by support service Contractors
in accordance with subparagraphs (b)(1) through (4) of this clause,
provided the Government makes such disclosure or reproduction subject to
these restricted rights; and
(6) Used or copied for use in or transferred to a replacement
computer.
(c) Notwithstanding the foregoing, if this computer software is published
copyrighted computer software, it is licensed to the Government, without
disclosure prohibitions, with the minimum rights set forth in paragraph (b) of
this clause.
(d) Any others rights or limitations regarding the use, duplication, or
disclosure of this computer software are to be expressly stated in, or
incorporated in, the contract.
(e) This Notice shall be marked on any reproduction of this computer
software, in whole or in part.
(End of notice)
(ii) Where it is impractical to include the Restricted Rights Notice on
restricted computer software, the following short-form Notice may be used in
lieu thereof:
RESTRICTED RIGHTS NOTICE SHORT FORM (JUN 1987)
Use, reproduction, or disclosure is subject to restrictions set forth in
Contract No. _______ (and subcontract __________, if appropriate) with
__________________ (name of Contractor and subcontractor)."
(End of notice)
5
(iii) If restricted computer software is delivered with the copyright
notice of 17 U.S.C. 401, it will be presumed to be published copyrighted
computer software licensed to the Government without disclosure prohibitions,
with the minimum rights set forth in paragraph (b) of this clause, unless the
Contractor includes the following statement with such copyright notice:
"Unpublished-rights reserved under the Copyright Laws of the United States."
04. FAR 52.227-16 Additional Data Requirements
ADDITIONAL DATA REQUIREMENTS (JUN 1987)
(a) In addition to the data (as defined in the clause at 52.227-14, Rights in
Data-General clause or other equivalent included in this contract) specified
elsewhere in this contract to be delivered, the Contracting Officer may, at any
time during contract performance or within a period of 3 years after acceptance
of all items to be delivered under this contract, order any data first produced
or specifically used in the performance of this contract.
(b) The Rights in Data-General clause or other equivalent included in this
contract is applicable to all data ordered under this Additional Data
Requirements clause. Nothing contained in this clause shall require the
Contractor to deliver any data the withholding of which is authorized by the
Rights in Data-General or other equivalent clause of this contract, or data
which are specifically identified in this contract as not subject to this
clause.
(c) When data are to be delivered under this clause, the Contractor will be
compensated for converting the data into the prescribed form, for reproduction,
and for delivery.
(d) The Contracting Officer may release the Contractor from the requirements of
this clause for specifically identified data items at any time during the 3-year
period set forth in paragraph (a) of this clause.
(End of clause)
05. FAR 52.227-23 Rights to Proposal Data
RIGHTS TO PROPOSAL DATA (TECHNICAL)(JUN 1987)
Except for data contained on pages 3-26, it is agreed that as a condition of
award of this contract, and notwithstanding the conditions of any notice
appearing thereon, the Government shall have unlimited rights (as defined in the
"Rights in Data--General" clause contained in this contract) in and to the
technical data contained in the proposal dated 10/29/98, upon which this
contract is based.
06. DEAR 952.227-9 Refund of Royalties
REFUND OF ROYALTIES (FEB 1995)
(a) The contract price includes certain amounts for royalties payable by the
Contractor or subcontractors or both, which amounts have been reported to the
Contracting Officer.
(b) The term "royalties" as used in this clause refers to any costs or charges
in the nature of royalties, license fees, patent or license amortization costs,
or the like, for the use of or for rights in patents and patent applications in
connection with performing this contract or any subcontract here-under. The term
also includes any costs or charges associated with the access to, use of, or
other right pertaining to data that is represented to be proprietary and is
related to the performance of this contract or the copying of such data or data
that is copyrighted.
(c) The Contractor shall furnish to the Contracting Officer, before final
payment under this contract, a statement of royalties paid or required to be
paid in connection with performing this contract and subcontracts hereunder
together with the reasons.
6
(d) The Contractor will be compensated for royalties reported under paragraph
(c) of this clause, only to the extent that such royalties were included in the
contract price and are determined by the Contracting Officer to be properly
chargeable to the Government and allocable to the contract. To the extent that
any royalties that are included in the contract price are not, in fact, paid by
the Contractor or are determined by the Contracting Officer not to be properly
chargeable to the government and allocable to the contract, the contract price
shall be reduced. Repayment or credit to the Government shall be made as the
Contracting Officer directs. The approval by DOE of any individual payments or
royalties shall not prevent the Government from contesting at any time the
enforceability, validity, scope of, or title to, any patent or the proprietary
nature of data pursuant to which a royalty or other payment is to be or has been
made.
(e) If, at any time within 3 years after final payment under this contract, the
Contractor for any reason is relieved in whole or in part from the payment of
the royalties included in the final contract price as adjusted pursuant to
paragraph (d) of this clause, the Contractor shall promptly notify the
Contracting Officer of that fact and shall reimburse the Government in a
corresponding amount.
(f) The substance of this clause, including this paragraph (f), shall be
included in any subcontract in which the amount of royalties reported during
negotiation of the subcontract exceeds $250.
(End of clause)
07. DEAR 952.227-13 Patent Rights - Acquisition by the Government
PATENT RIGHTS-ACQUISITION BY THE GOVERNMENT (FEB 1995)
(a) Definitions.
"Invention", as used in this clause, means any invention or discovery which
is or may be patentable or otherwise protectable under title 35 of the United
States Code or any novel variety of plant that is or may be protectable under
the Plant Variety Protection Act (7 U.S.C. 2321, et seq.).
"Practical application", as used in this clause, means to manufacture, in
the case of a composition or product; to practice, in the case of a process or
method; or to operate, in the case of a machine or system; and, in each case,
under such conditions as to establish that the invention is being utilized and
that its benefits are, to the extent permitted by law or Government regulations,
available to the public on reasonable terms.
"Subject invention", as used in this clause, means any invention of the
Contractor conceived or first actually reduced to practice in the course of or
under this contract.
"Patent Counsel", as used in this clause, means the Department of Energy
Patent Counsel assisting the procuring activity.
"DOE patent waiver regulations", as used in this clause, means the
Department of Energy patent waiver regulations at 41 CFR 9-9.109-6 or successor
regulations. See 10 CFR part 784.
"Agency licensing regulations" and "applicable agency licensing
regulations", as used in this clause, mean the Department of Energy patent
licensing regulations at 10 CFR Part 781.
(b) Allocations of principal rights.
(1) Assignment to the Government. The Contractor agrees to assign to the
Government the entire right, title, and interest throughout the world in and to
each subject invention, except to the extent that rights are retained by the
Contractor under subparagraph (b)(2) and paragraph (d) of this clause.
(2) Greater rights determinations.
(i) The contractor, or an employee-inventor after consultation with
the Contractor, may request greater rights than the nonexclusive license
and the foreign patent rights provided in paragraph (d) of this clause on
identified inventions in accordance with the DOE patent waiver regulations.
A request for a determination of whether the Contractor or the
employee-inventor is entitled to acquire such greater rights must be
submitted to
7
the Patent Counsel with a copy to the Contracting Officer at the time of
the first disclosure of the invention pursuant to subparagraph (e)(2) of
this clause, or not later than 8 months thereafter, unless a longer period
is authorized in writing by the Contracting Officer for good cause shown in
writing by the Contractor. Each determination of greater rights under this
contract shall be subject to paragraph (c) of this clause, unless otherwise
provided in the greater rights determination, and to the reservations and
conditions deemed to be appropriate by the Secretary of Energy or designee.
(ii) Within two (2) months after the filing of a patent application,
the Contractor shall provide the filing date, serial number and title, a
copy of the patent application (including an English-language version if
filed in a language other than English), and, promptly upon issuance of a
patent, provide the patent number and issue date for any subject invention
in any country for which the Contractor has been granted title or the right
to file and prosecute on behalf of the United States by the Department of
Energy.
(iii) Not less than thirty (30) days before the expiration of the
response period for any action required by the Patent and Trademark
Office, notify the Patent Counsel of any decision not to continue
prosecution of the application.
(iv) Upon request, the Contractor shall furnish the Government an
irrevocable power to inspect and make copies of the patent application
file.
(c) Minimum rights acquired by the Government.
(1) With respect to each subject invention to which the Department of
Energy grants the Contractor principal or exclusive rights, the Contractor
agrees as follows:
(i) The Contractor hereby grants to the Government a nonexclusive,
nontransferable, irrevocable, paid-up license to practice or have practiced
each subject invention throughout the world by or on behalf of the
Government of the United States (including any Government agency).
(ii) The Contractor agrees that with respect to any subject invention
in which DOE has granted it title, DOE has the right in accordance with the
procedures in the DOE patent waiver regulations (10 CFR part 784) to
require the Contractor, an assignee, or exclusive licensee of a subject
invention to grant a nonexclusive, partially exclusive, or exclusive
license in any field of use to a responsible applicant or applicants, upon
terms that are reasonable under the circumstances, and if the Contractor,
assignee, or exclusive licensee refuses such a request, DOE has the right
to grant such a license itself if it determines that--
(A) Such action is necessary because the Contractor or assignee
has not taken, or is not expected to take within a reasonable time,
effective steps to achieve practical application of the subject
invention in such field of use;
(B) Such action is necessary to alleviate health or safety needs
which are not reasonably satisfied by the Contractor, assignee, or
their licensees;
(C) Such action is necessary to meet requirements for public use
specified by Federal regulations and such requirements are not
reasonably satisfied by the Contractor, assignee, or licensees; or
(D) Such action is necessary because the agreement required by
paragraph (i) of this clause has neither been obtained nor waived or
because a licensee of the exclusive right to use or sell any subject
invention in the United States is in breach of such agreement.
(iii) The Contractor agrees to submit on request periodic reports no
more frequently than annually on the utilization of a subject invention or
on efforts at obtaining such utilization of a subject invention or on
efforts at obtaining such utilization that are being made by the Contractor
or its licensees or assignees. Such reports shall include information
regarding the status of development, date of first commercial sale or use,
gross royalties received by the Contractor, and such other data and
information as DOE may reasonably specify. The Contractor also agrees to
provide additional reports as may be requested by DOE in connection with
any march-in proceedings undertaken by that agency in accordance with
subparagraph (c)(1)(ii) of this clause. To the extent data or information
supplied under this section is considered by the Contractor, its licensee,
or
8
assignee to be privileged and confidential and is so marked, the Department
of Energy agrees that to the extent permitted by law, it will not disclose
such information to persons outside the Government
(iv) The Contractor agrees, when licensing a subject invention, to
arrange to avoid royalty charges on acquisitions involving Government
funds, including funds derived through a Military Assistance Program of the
Government or otherwise derived through the Government, to refund any
amounts received as royalty charges on a subject invention in acquisitions
for, or on behalf of, the Government, and to provide for such refund in any
instrument transferring rights in the invention to any party.
(v) The Contractor agrees to provide for the Government's paid-up
license pursuant to subparagraph (c)(1)(i) of this clause in any instrument
transferring rights in a subject invention and to provide for the granting
of licenses as required by subparagraph (c)(1)(ii) of this clause, and for
the reporting of utilization information as required by subparagraph
(c)(1)(iii) of this clause, whenever the instrument transfers principal or
exclusive rights in a subject invention.
(2) Nothing contained in this paragraph (c) shall be deemed to grant
to the Government any rights with respect to any invention other than a
subject invention.
(d) Minimum rights to the Contractor.
(1) The Contractor is hereby granted a revocable, nonexclusive,
royalty-free license in each patent application filed in any country on a
subject invention and any resulting patent in which the Government obtains
title, unless the Contractor fails to disclose the subject invention within the
times specified in subparagraph (e)(2) of this clause. The Contractors license
extends to its domestic subsidiaries and affiliates, if any, within the
corporate structure of which the Contractor is a part and includes the right to
grant sublicenses of the same scope to the extent the Contractor was legally
obligated to do so at the time the contract was awarded. The license is
transferable only with the approval of DOE except when transferred to the
successor of that part of the Contractors business to which the invention
pertains.
(2) The Contractors domestic license may be revoked or modified by DOE to
the extent necessary to achieve expeditious practical application of the subject
invention pursuant to an application for an exclusive license submitted in
accordance with applicable provisions in 37 CFR Part 404 and agency licensing
regulations. This license will not be revoked in that field of use or the
geographical areas in which the Contractor has achieved practical applications
and continues to make the benefits of the invention reasonably accessible to the
public. The license in any foreign country may be revoked or modified at the
discretion of DOE to the extent the Contractor, its licensees, or its domestic
subsidiaries or affiliates have failed to achieve practical application in that
foreign country.
(3) Before revocation or modification of the license, DOE will furnish the
Contractor a written notice of its intention to revoke or modify the license,
and the Contractor will be allowed 30 days (or such other time as may be
authorized by DOE for good cause shown by the Contractor) after the notice to
show cause why the license should not be revoked or modified. The Contractor has
the right to appeal, in accordance with applicable agency licensing regulations
and 37 CFR Part 404 concerning the licensing of Government-owned inventions an
decision concerning the revocation or modification of its license.
(4) The Contractor may request the right to acquire patent rights to a
subject invention in any foreign country where the Government has elected not to
secure such rights, subject to the conditions in subparagraphs (d)(4)(i) through
(d)(4)(vii) of this clause. Such request must be made in writing to the Patent
Counsel as part of the disclosure required by subparagraph (e)(2) of this
clause, with a copy to the DOE Contracting Officer. DOE approval, if given, will
be based on a determination that this would best serve the national interest.
(i) The recipient of such rights, when specifically requested by DOE,
and three years after issuance of a foreign patent disclosing the subject
invention, shall furnish DOE a report stating:
(A) The commercial use that is being made, or is intended to be
made, of said invention, and
(B) The steps taken to bring the invention to the point of
practical application or to make the 00 invention available for
licensing.
9
(ii) The Government shall retain at least an irrevocable,
nonexclusive, paid-up license to make, use, and sell the invention
throughout the world by or on behalf of the Government (including any
Government agency) and States and domestic municipal governments, unless
the Secretary of Energy or designee determines that it would not be in the
public interest to acquire the license for the States and domestic
municipal governments.
(iii) If noted elsewhere in this contract as a condition of the grant
of an advance waiver of the Government's title to inventions under this
contract, or, if no advance waiver was granted but a waiver of the
Government's title to an identified invention is granted pursuant to
subparagraph (b)(2) of this clause upon a determination by the Secretary of
Energy that it is in the Government's best interest, this license shall
include the right of the Government to sublicense foreign governments
pursuant to any existing or future treaty or agreement with such foreign
governments.
(iv) Subject to the rights granted in subparagraphs (d)(1), (2), and
(3) of this clause, the Secretary of Energy or designee shall have the
right to terminate the foreign patent rights granted in this subparagraph
(d)(4) in whole or in part unless the recipient of such rights
demonstrates to the satisfaction of the Secretary of Energy or designee
that effective steps necessary to accomplish substantial utilization of the
invention have been taken or within a reasonable time will be taken.
(v) Subject to the rights granted in subparagraphs (d)(1), (2), and
(3) of this clause, the Secretary of Energy or designee shall have the
right, commencing four years after foreign patent rights are accorded under
this subparagraph (d)(4), to require the granting of a nonexclusive or
partially exclusive license to a responsible applicant or applicants, upon
terms reasonable under the circumstances, and in appropriate circumstances
to terminate said foreign patent rights in whole or in part, following a
hearing upon notice thereof to the public, upon a petition by an interested
person justifying such hearing:
(A) If the Secretary of Energy or designee determines, upon
review of such material as he deems relevant, and after the recipient
of such rights or other interested person has had the opportunity to
provide such relevant and material information as the Secretary or
designee may require, that such foreign patent rights have tended
substantially to lessen competition or to result in undue market
concentration in any section of the United States in any line of
commerce to which the technology relates; or
(B) Unless the recipient of such rights demonstrates to the
satisfaction of the Secretary of Energy or designee at such hearing
that the recipient has taken effective steps, or within a reasonable
time thereafter is expected to take such steps, necessary to
accomplish substantial utilization of the invention.
(vi) If the contractor is to file a foreign patent application on a
subject invention, the Government agrees, upon written request, to use its
best efforts to withhold publication of such invention disclosures for such
period of time as specified by Patent Counsel, but in no event shall the
Government or its employees be liable for any publication thereof.
(vii) Subject to the license specified in subparagraphs (d)(1), (2),
and (3) of this clause, the contractor or inventor agrees to convey to the
Government, upon request, the entire right, title, and interest in any
foreign country in which the contractor or inventor fails to have a patent
application filed in a timely manner or decides not to continue prosecution
or to pay any maintenance fees covering the invention. To avoid forfeiture
of the patent application or patent, the contractor or inventor shall, not
less than 60 days before the expiration period for any action required by
any patent office, notify the Patent Counsel of such failure or decision,
and deliver to the Patent Counsel, the executed instruments necessary for
the conveyance specified in this paragraph.
(e) Invention identification, disclosures, and reports.
(1) The Contractor shall establish and maintain active and effective
procedures to assure that subject inventions are promptly identified and
disclosed o Contractor personnel responsible for patent matters within 6 months
of conception and/or first actual reduction to practice, whichever occurs first
in the performance of work under this contract. These procedures shall include
the maintenance of laboratory notebooks or equivalent records and other records
as are reasonably necessary to document the conception and/or the first actual
reduction to practice of subject inventions, and records that show that the
procedures for identifying and disclosing the inventions are followed. Upon
request, the Contractor shall furnish the Contracting Officer a description of
such procedures for evaluation and for determination as to their effectiveness.
10
(2) The Contractor shall disclose each subject invention to the DOE Patent
Counsel with a copy to the Contracting Officer within 2 months after the
inventor discloses it in writing to Contractor personnel responsible for patent
matters or, if earlier, within 6 months after the Contractor becomes aware that
a subject invention has been made, but in any event before any on sale, public
use, or publication of such invention known to the Contractor. The disclosure to
DOE shall be in the form of a written report and shall identify the contract
under which the invention was made and the inventor(s). It shall be sufficiently
complete in technical detail to convey a clear understanding, to the extent
known at the time of the disclosure, of the nature, purpose, operation, and
physical, chemical, biological, or electrical characteristics of the invention.
The disclosure shall also identify any publication, on sale, or public use of
the invention and whether a manuscript describing the invention has been
submitted for publication and, if so, whether it has been accepted for
publication at the time of disclosure. In addition, after disclosure to DOE, the
Contractor shall promptly notify Patent Counsel of the acceptance of any
manuscript describing the invention for publication or of any on sale or public
use planned by the Contractor. The report should also include any request for a
greater rights determination in accordance with subparagraph (b)(2) of this
clause. When an invention is disclosed to DOE under this paragraph, it shall be
deemed to have been made in the manner specified in Sections (a)(1) and (a)(2)
of 42 U.S.C. 5908, unless the Contractor contends in writing at the time the
invention is disclosed that is was not so made.
(3) The Contractor shall furnish the Contracting Officer the following:
(i) Interim reports every 12 months (or such longer period as may be
specified by the Contracting Officer) from the date of the contract,
listing subject inventions during that period, and certifying that all
subject inventions have been disclosed (or that there are not such
inventions) and that the procedures required by subparagraph (e)(1) of this
clause have been followed.
(ii) A final report, within 3 months after completion of the
contracted work listing all subject inventions or certifying that there
were no such inventions, and listing all subcontracts at any tier
containing a patent rights clause or certifying that there were no such
subcontracts.
(4) The Contractor agrees to require, by written agreement, its employees,
other than clerical and nontechnical employees, to disclose promptly in writing
to personnel identified as responsible for the administration of patent matters
and in a format suggested by the Contractor each subject invention made under
contract in order that the Contractor can comply with the disclosure provisions
of paragraph (c) of this clause, and to execute all papers necessary to file
patent applications on subject inventions and to establish the Government's
rights in the subject inventions. This disclosure format should require, as a
minimum, the information required by subparagraph (e)(2) of this clause.
(5) The Contractor agrees, subject to FAR 27.302(j), that the Government
may duplicate and disclose subject invention disclosures and all other reports
and papers furnished or required to be furnished pursuant to this clause.
(f) Examination of records relating to inventions.
(1) The Contracting Officer or any authorized representative shall, until 3
years after final payment under this contract, have the right to examine any
books (including laboratory notebooks), records, and documents of the Contractor
relating to the conception or first actual reduction to practice of inventions
in the same field of technology as the work under this contract to determine
whether--
(i) Any such inventions are subject inventions;
(ii) The Contractor has established and maintains the procedures
required by subparagraphs (e)(1) and (4) of this clause;
(iii) The Contractor and its inventors have complied with the
procedures.
(2) If the Contracting Officer learns of an unreported Contractor invention
which the Contracting Officer believes may be a subject invention, the
Contractor may be required to disclose the invention to DOE for a determination
of ownership rights.
(3) Any examination of records under this paragraph will be subject to
appropriate conditions to protect the confidentiality of the information
involved.
11
(g) Withholding of payment (NOTE: This paragraph does not apply to
subcontracts).
(1) Any time before final payment under this contract, the Contracting
Officer may, in the Government's interest, withhold payment until a reserve not
exceeding $50,000 or 5 percent of the amount of this contract, whichever is
less, shall have been set aside if, in the Contracting Officers opinion, the
Contractor fails to--
(i) Convey to the Government, using a DOE-approved form, the title
and/or rights of the Government in each subject invention as required by
this clause.
(ii) Establish, maintain, and follow effective procedures for
identifying and disclosing subject inventions pursuant to subparagraph
(e)(1) of this clause;
(iii) Disclose any subject invention pursuant to subparagraph (e)(2)
of this clause;
(iv) Deliver acceptable interim reports pursuant to subparagraph
(e)(3)(i) of this clause; or
(v) Provide the information regarding subcontracts pursuant to
subparagraph (h)(4) of this clause.
(2) Such reserve or balance shall be withheld until the Contracting Officer
has determined that the Contractor has rectified whatever deficiencies exist and
has delivered all reports, disclosures, and other information required by this
clause.
(3) Final payment under this contract shall not be made before the
Contractor delivers to the Contracting Officer all disclosures of subject
inventions required by subparagraph (e)(2) of this clause, and acceptable final
report pursuant to subparagraph (e)(3)(ii) of this clause, and the Patent
Counsel has issued a patent clearance certification to the Contracting Officer.
(4) The Contracting Officer may decrease or increase the sums withheld up
to the maximum authorized above. No amount shall be withheld under this
paragraph while the amount specified by this paragraph is being withheld under
other provisions of the contract. The withholding of any amount or the
subsequent payment thereof shall not be construed as a waiver of any Government
rights.
(h) Subcontracts.
(1) The contractor shall include the clause at 48 CFR 952.227-11 (suitably
modified to identify the parties) in all subcontracts, regardless of tier, for
experimental, developmental, demonstration, or research work to be performed by
a small business firm or domestic nonprofit organization, except where the work
of the subcontract is subject to an Exceptional Circumstances Determination by
DOE. In all other subcontracts, regardless of tier, for experimental,
developmental, demonstration, or research work, the contractor shall include
this clause (suitably modified to identify the parties). The contractor shall
not, as part of the consideration for awarding the subcontract, obtain rights in
the subcontractors subject inventions.
(2) In the event of a refusal by a prospective subcontractor to accept such
a clause the Contractor--
(i) Shall promptly submit a written notice to the Contracting Officer
setting forth the subcontractors reasons for such refusal and other
pertinent information that may expedite disposition of the matter; and
(ii) Shall not proceed with such subcontract without the written
authorization of the Contracting Officer.
(3) In the case of subcontracts at any tier, DOE, the subcontractor, and
Contractor agree that the mutual 1.0 obligations of the parties created by this
clause constitute a contract between the subcontractor and DOE with respect to
those matters covered by this clause.
(4) The Contractor shall promptly notify the Contracting Officer in writing
upon the award of any subcontract at any tier containing a patent rights clause
by identifying the subcontractor, the applicable patent rights clause, the work
to be performed under the subcontract, and the dates of award and estimated
completion. Upon request of the Contracting Officer, the Contractor shall
furnish a copy of such subcontract, and, no more frequently than annually, a
listing of the subcontracts that have been awarded.
12
(5) The contractor shall identify all subject inventions of the
subcontractor of which it acquires knowledge in the performance of this contract
and shall notify the Patent Counsel, with a copy to the contracting officer,
promptly upon identification of the inventions.
(i) Preference United States industry. Unless provided otherwise, no Contractor
that receives title to any subject invention and no assignee of any such
Contractor shall grant to any person the exclusive right to use or sell any
subject invention in the United States unless such person agrees that any
products embodying the subject invention will be manufactured substantially in
the United States. However, in individual cases, the requirement may be waived
by the Government upon a showing by the Contractor or assignee that reasonable
but unsuccessful efforts have been made to grant licenses on similar terms to
potential licensees that would be likely to manufacture substantially in the
United States or that under the circumstances domestic manufacture is not
commercially feasible.
(j) Atomic energy.
(1) No claim for pecuniary award of compensation under the provisions of
the Atomic Energy Act of 1954, as amended, shall be asserted with respect to any
invention or discovery made or conceived in the course of or under this
contract.
(2) Except as otherwise authorized in writing by the Contracting Officer,
the Contractor will obtain patent agreements to effectuate the provisions of
subparagraph (e)(1) of this clause from all persons who perform any part of the
work under this contract, except nontechnical personnel, such as clerical
employees and manual laborers.
(k) Background Patents.
(1) Background Patent means a domestic patent covering an invention or
discovery which is not a subject invention and which is owned or controlled by
the Contractor at any time through the completion of this contract:
(i) Which the contractor, but not the Government, has the right to
license to others without obligation to pay royalties thereon, and
(ii) Infringement of which cannot reasonably be avoided upon the
practice of any specific process, method, machine, manufacture, or
composition of matter (including relatively minor modifications thereof)
which is a subject of the research, development, or demonstration work
performed under this contract.
(2) The Contractor agrees to and does hereby grant to the Government a
royalty-free, nonexclusive license under any background patent for purposes of
practicing a subject of this contract by or for the Government in research,
development, and demonstration work only.
(3) The Contractor also agrees that upon written application by DOE, it
will grant to responsible parties, for purposes of practicing a subject of this
contract, nonexclusive licenses under any background patent on terms that are
reasonable under the circumstances. If, however, the Contractor believes that
exclusive rights are necessary to achieve expeditious commercial development or
utilization, then a request may be made to DOE for DOE approval of such
licensing by the Contractor.
(4) Notwithstanding subparagraph (k)(3) of this clause, the contractor
shall not be obligated to license any background patent if the Contractor
demonstrates to the satisfaction of the Secretary of Energy or designee that:
(i) a competitive alternative to the subject matter covered by said
background patent is commercially available or readily introducible from
one or more other sources; or
(ii) the Contractor or its licensees are supplying the subject matter
covered by said background patent in sufficient quantity and at reasonable
prices to satisfy market needs, or have taken effective steps or within a
reasonable time are expected to take effective steps to so supply the
subject matter.
(l) Publication. It is recognized that during the course of the work under this
contract, the Contractor or its employees may from time to time desire to
release or publish information regarding scientific or technical developments
conceived or first actually reduced to practice in the course of or under this
contract. In order that
13
public disclosure of such information will not adversely affect the patent
interests of DOE or the Contractor, patent approval for release of publication
shall be secured from Patent Counsel prior to any such release or publication.
(m) Forfeiture of rights in unreported subject inventions.
(1) The Contractor shall forfeit and assign to the Government, at the
request of the Secretary of Energy or designee, all rights in any subject
invention which the Contractor fails to report to Patent Counsel within six
months after the time the Contractor:
(i) Files or causes to be filed a United States or foreign patent
application thereon; or
(ii) Submits the final report required by subparagraph (e)(2)(ii) of
this clause, whichever is later.
(2) However, the Contractor shall not forfeit rights in a subject invention
if, within the time specified in subparagraph (m)(1) of this clause, the
Contractor
(i) Prepares a written decision based upon a review of the record that
the invention was neither conceived nor first actually reduced to practice
in the course of or under the contract and delivers the decision to Patent
Counsel, with a copy to the Contracting Officer; or
(ii) Contending that the invention is not a subject invention, the
Contractor nevertheless discloses the invention and all facts pertinent to
this contention to the Patent Counsel, with a copy to the Contracting
Officer; or
(iii) Establishes that the failure to disclose did not result from the
Contractor's fault or negligence.
(3) Pending written assignment of the patent application and patents on a
subject invention determined by the Secretary of Energy or designee to be
forfeited (such determination to be a final decision under the Disputes clause
of this contract), the Contractor shall be deemed to hold the invention and the
patent applications and patents pertaining thereto in trust for the Government.
The forfeiture provision of this paragraph (m) shall be in addition to and
shall not supersede other rights and remedies which the Government may have with
respect to subject inventions.
(End of clause)
14
Attachment 1: 952.227-11 Patent Rights - Retention by the Contractor (short
form)
PATENT RIGHTS - RETENTION BY THE CONTRACTOR (SHORT FORM) (FEB 1995)
(a) Definitions.
(1) "Invention" means any invention or discovery which is or may be
patentable or otherwise protectable under title 35 of the United States Code, or
any novel variety of plant which is or may be protected under the Plant Variety
Protection Act (7 U.S.C. 2321, et seq.).
(2) "Made" when used in relation to any invention means the conception of
first actual reduction to practice of such invention.
(3) "Nonprofit organization" means a university or other institution of
higher education or an organization of the type described in section 501 (c)(3)
of the Internal Revenue Code of 1954 (26 U.S.C. 501(c)) and exempt from taxation
under section 501(a) of the Internal Revenue Code (26 U.S.C. 501(a)) or any
nonprofit scientific or educational organization qualified under a state
nonprofit organization statute.
(4) "Practical application" means to manufacture, in the case of a
composition or product; to practice, in the case of a process or method; or to
operate, in the case of a machine or system; and, in each case, under such
conditions as to establish that the invention is being utilized and that is
benefits are, to the extent permitted by law or Government regulations,
available to the public on reasonable terms.
(5) "Small business firm" means a small business concern as defined at
section 2 of Pub. L. 85-538 (15 U.S.C. 632) and implementing regulations of the
Administrator of the Small Business Administration. For the purpose of this
clause, the size standards for small business concerns involved in Government
procurement and subcontracting at 13 CFR 121 .3-8 and 13 CFR 121 .3-12,
respectively, will be used.
(6) "Subject invention" means any invention of the contractor conceived or
first actually reduced to practice in the performance of work under this
contract, provided that in the case of a variety of plant, the date of
determination (as defined in section 41(d) of the Plant Variety Protection Act,
7 U.S.C. 2401(d)) must also occur during the period of contract performance.
(7) "Agency licensing regulations" and "agency regulations concerning the
licensing of Government-owned inventions" mean the Department of Energy patent
licensing regulations at 10 CFR Part 781.
(b) Allocation of principal rights. The Contractor may retain the entire right,
title, and interest throughout the world to each subject invention subject to
the provisions of this clause and 35 U.S.C. 203. With respect to any subject
invention in which the Contractor retains title, the Federal Government shall
have a nonexclusive, nontransferable irrevocable, paid-up license to practice or
have practiced for or on behalf of the United States the subject invention
throughout the world.
(c) Invention disclosure, election of title, and filing of patent application by
Contractor.
(1) The Contractor will disclose each subject invention to the Department
of Energy (DOE) within 2 months after the inventor discloses it in writing to
Contractor personnel responsible for patent matters. The disclosure to DOE shall
be in the form of a written report and shall identify the contract under which
the invention was made and the inventor(s). It shall be sufficiently complete in
technical detail to convey a clear understanding to the extent known at the time
of the disclosure, of the nature, purpose, operation, and the physical,
chemical, biological or electrical characteristics of the invention. The
disclosure shall also identify any publication, on sale or public use of the
invention and whether a manuscript describing the invention has been submitted
for publication and, if so, whether it has been accepted for publication at the
time of disclosure. In addition, after disclosure to the DOE, the Contractor
will promptly notify that agency of the acceptance of any manuscript
describing the invention for publication or of any on sale or public use planned
by the Contractor.
(2) The Contractor will elect in writing whether or not to retain title to
any such invention by notifying DOE CO within 2 years of disclosure to DOE.
However, in any case where publication, on sale or public use has initiated
the 1-year statutory period wherein valid patent protection can still be
obtained in the United States, the period for election of title may be shortened
by DOE to a date that is no more than 60 days prior to the end of the statutory
period.
(3) The Contractor will file its initial patent application on a subject
invention to which it elects to retain title within 1 year after election of
title or, if earlier, prior to the end of any statutory period wherein valid
patent protection can be obtained in the United States after a publication, on
sale, or public use. The Contractor will file patent applications in additional
countries or international patent offices within either 10 months of the
corresponding initial patent application or 6 months from the date permission is
granted by the Commissioner of Patents and Trademarks to file foreign patent
applications where such filing has been prohibited by a Secrecy Order.
(4) Requests for extension of the time for disclosure, election, and filing
under subparagraphs (c)(l), (2), and (3) of this clause may, at the discretion
of the agency, be granted.
(d) Conditions when the Government may obtain title. The Contractor will convey
to the Federal agency, upon written request, title to any subject invention--
(1) If the Contractor fails to disclose or elect title to the subject
invention within the times specified in paragraph (c) of this clause, or elects
not to retain title; provided, that DOE may only request title within 60 days
after learning of the failure of the Contractor to disclose or elect within the
specified times.
(2) In those countries in which the Contractor fails to file patent
applications within the times specified in paragraph (c) of this clause;
provided, however, that if the Contractor has filed a patent application in a
country after the times specified in paragraph (c) of this clause, but prior to
its receipt of the written request of the Federal agency, the Contractor shall
continue to retain title in that country.
(3) In any country in which the Contractor decides not to continue the
prosecution of any application for, to pay the maintenance fees on, or defend in
reexamination or opposition proceeding on, a patent on a subject invention.
(e) Minimum rights to Contractor and protection of the Contractor right to file.
(1) The Contractor will retain a nonexclusive royalty-free license
throughout the world in each subject invention to which the Government obtains
title, except if the Contractor fails to disclose the invention within the times
specified in paragraph (c) of this clause. The Contractors license extends to
its domestic subsidiary and affiliates, if any, within the corporate structure
of which the Contractor is a party and includes the right to grant sublicenses
of the same scope to the extent the Contractor was legally obligated to do so at
the time the contract was awarded. The license is transferable only with the
approval of the Federal agency, except when transferred to the successor of that
part of the Contractors business to which the invention pertains.
(2) The Contractor's domestic license may be revoked or modified by DOE to
the extent necessary to achieve expeditious practical application of subject
invention pursuant to an application for an exclusive license submitted in
accordance with applicable provisions at 37 CFR Part 404 and agency licensing
regulations. This license will not be revoked in that field of use or the
geographical areas in which the Contractor has achieved practical application
and continues to make the benefits of the invention reasonably accessible to the
public. The license in any foreign country may be revoked or modified at the
discretion of DOE to the extent the Contractor, its licensees, or the domestic
subsidiaries or affiliates have failed to achieve practical application in that
foreign country.
(3) Before revocation or modification of the license, DOE will furnish the
Contractor a written notice of its intention to revoke or modify the license,
and the Contractor will be allowed 30 days (or such other time as may be
authorized by DOE for good cause shown by the Contractor) after the notice to
show cause why the license should not be revoked or modified. The Contractor has
the right to appeal, in accordance with applicable regulations in 37 CFR Part
404 and agency regulations concerning the licensing of Government owned
inventions, any decision concerning the revocation or modification of the
license.
(f) Contractor action to protect the Government's interest.
(1) The Contractor agrees to execute or to have executed and promptly
deliver to DOE all instruments necessary to (i) establish or confirm the rights
the Government has throughout the world in those subject inventions to which the
Contractor elects to retain title, and (ii) convey title to DOE when requested
under paragraph (d) of this clause and to enable the government to obtain patent
protection throughout the world in that subject invention.
(2) The Contractor agrees to require, by written agreement, its employees,
other than clerical and nontechnical employees, to disclose promptly in writing
to personnel identified as responsible for the administration of patent mailers
and in a format suggested by the Contractor each subject invention made under
contract in order that the Contractor can comply with the disclosure provisions
of paragraph (c) of this clause, and to execute all papers necessary to file
patent applications on subject inventions and to establish the Government's
rights in the subject inventions. This disclosure format should require, as a
minimum, the information required by subparagraph (c)(1) of this clause. The
Contractor shall instruct such employees, through employee agreements or other
suitable educational programs, on the importance of reporting inventions in
sufficient time to permit the filing of patent applications prior to U.S. or
foreign statutory bars.
(3) The Contractor will notify DOE of any decision not to continue the
prosecution of a patent application, pay maintenance fees, or defend in a
reexamination or opposition proceeding on a patent, in any country, not less
than 30 days before the expiration of the response period required by the
relevant patent office.
(4) The Contractor agrees to include, within the specification of any
United States patent application and any patent issuing thereon covering a
subject invention, the following statement, "This invention was made with
Government support under (identify the contract) awarded by the United States
Department of Energy. The Government has certain rights in the invention."
(g) Subcontracts.
(1) The Contractor will include this clause, suitably modified to identify
the parties, in all subcontracts, regardless of tier, for experimental,
developmental, or research work to be performed by a small business firm or
domestic nonprofit organization. The subcontractor will retain all rights
provided for the Contractor in this clause, and the Contractor will not, as part
of the consideration for awarding the subcontract, obtain rights in the
subcontractors subject inventions.
(2) The contractor shall include in all other subcontracts, regardless of
tier, for experimental, developmental. demonstration, or research work the
patent rights clause at 952.227-13.
(3) In the case of subcontracts, at any tier, DOE, subcontractor, and the
Contractor agree that the mutual obligations of the parties created by this
clause constitute a contract between the subcontractor and DOE with respect to
the matters covered by the clause; provided, however, that nothing in this
paragraph is intended to confer any jurisdiction under the Contract Disputes Act
in connection with proceedings under paragraph (j) of this clause.
(h) Reporting on utilization of subject inventions. The Contractor agrees to
submit, on request, periodic reports no more frequently than annually on the
utilization of a subject invention or on efforts at obtaining such utilization
that are being made by the Contractor or its licensees or assignees. Such
reports shall include information regarding the status of development, date of
first commercial sale or use, gross royalties received, by the Contractor, and
such other data and information as DOE may reasonably specify. The Contractor
also agrees to provide additional reports as may be requested by DOE in
connection with any march-in proceeding undertaken by that agency in accordance
with paragraph (j) of this clause. As required by 35 U.S.C. 202(c)(5), DOE
agrees it will not disclose such information to persons outside the Government
without permission of the Contractor.
(i) Preference for United States industry. Notwithstanding any other provision
of this clause, the Contractor agrees that neither it nor any assignee will
grant to any person the exclusive right to use or sell any subject invention in
the United States unless such person agrees that any product embodying the
subject invention or produced through the use of the subject invention will be
manufactured substantially in the United States. However, in individual cases,
the requirement for such an agreement may be waived by DOE upon a showing by the
Contractor or its assignee that reasonable but unsuccessful efforts have been
made to grant licenses on similar terms to potential licensees that would be
likely to manufacture substantially in the United States or that under the
circumstances domestic manufacture is not commercially feasible.
(j) March-in rights. The Contractor agrees that, with respect to any subject
invention in which it has acquired title, DOE has the right in accordance with
the procedures in 37 CFR 401.6 and any supplemental regulations of the agency
to require the Contractor, an assignee or exclusive licensee of a subject
invention to grant a nonexclusive, partially exclusive, or exclusive license
in any field of use to a responsible applicant or applicants, upon terms that
are reasonable under the circumstances, and, if the Contractor, assignee, or
exclusive licensee refuses such a request, DOE has the right to grant such a
license itself if DOE determines that-- (1) Such action
is necessary because the Contractor or assignee has not taken, or is not
expected to take within a reasonable time, effective steps to achieve practical
application of the subject invention in such field of use; (2) Such action is
necessary to alleviate health or safety needs which are not reasonably satisfied
by the Contractor, assignee, or their licensees; (3) Such action is necessary to
meet requirements for public use specified by Federal regulations and such
requirements are not reasonably satisfied by the Contractor, assignee, or
licensees; or (4) Such action is necessary because the agreement required by
paragraph (i) of this clause has not been obtained or waived or because a
licensee of the exclusive right to use or sell any subject invention in the
United States is in breach of such agreement.
(k) Special provisions for contracts with nonprofit organizations. If the
Contractor is a nonprofit organization, it agrees that--
(1) Rights to a subject invention in the United States may not be assigned
without the approval of the Federal agency, except where such assignment is made
to an organization which has as one of its primary functions the management of
inventions; provided, that such assignee will be subject to the same provisions
as the Contractor;
(2) The Contractor will share royalties collected on a subject invention
with the inventor, including Federal employee co-inventors (when DOE deems it
appropriate) when the subject invention is assigned in accordance with 35 U.S.C.
202(e) and 37 CFR 401.10;
(3) The balance of any royalties or income earned by the Contractor with
respect to subject inventions, after payment of expenses (including payments to
inventors) incidental to the administration of subject inventions will be
utilized for the support of scientific research or education; and
(4) It will make efforts that are reasonable under the circumstances to
attract licensees of subject inventions that are small business firms, and that
it will give a preference to a small business firm when licensing a subject
invention if the Contractor determines that the small business firm has a plan
or proposal for marketing the invention which, if executed, is equally as likely
to bring the invention to practical application as any plans or proposals from
applicants that are not small business firms; provided, that the Contractor is
also satisfied that the small business firm has the capability and resources to
carry out its plan or proposal. The decision whether to give a preference in any
specific case will be at the discretion of the contractor. However, the
Contractor agrees that the Secretary of Commerce may review the Contractors
licensing program and decisions regarding small business applicants, and the
Contractor will negotiate changes to its licensing policies, procedures, or
practices with the Secretary of Commerce when that Secretary's review discloses
that the Contractor could take reasonable steps to more effectively implement
the requirements of this subparagraph (k)(4).
(l) Communications.
(1) The contractor shall direct any notification, disclosure, or request to
DOE provided for in this clause to the DOE patent counsel assisting the DOE
contracting activity, with a copy of the communication to the Contracting
Officer.
(2) Each exercise of discretion or decision provided for in this clause,
except subparagraph (k)(4), is reserved for the DOE Patent Counsel and is not a
claim or dispute and is not subject to the Contract Disputes Act of 1978.
(3) Upon request of the DOE Patent Counsel or the contracting officer, the
contractor shall provide any or all of the following:
(i) a copy of the patent application, filing date, serial number and
title, patent number, and issue date for any subject invention in any
country in which the contractor has applied for a patent;
(ii) a report, not more often than annually, summarizing all subject
inventions which were disclosed to DOE individually during the reporting
period specified; or
(iii) a report, prior to closeout of the contract, listing all subject
inventions or stating that there were none.
(End of clause)
ATTACHMENT VI
GUIDELINES FOR INTELLECTUAL PROPERTY
AGREEMENT FOR SFAA x.x.
All Intellectual provisions, definitions and clauses set forth in Attachment V
and Attachments thereto shall apply unless expressly modified hereunder. The
following modifications are subject to Contractor acquiring greater rights in
accordance with DOE patent waiver regulations at HICFR9-9.109-6, with respect to
subject inventions.
1. Subcontractor agrees to grant an exclusive, irrevocable, royalty free
license throughout the world in and to each subject invention developed
solely by the Subcontractor under this agreement with application in the
hydrocarbon conversion devices for fuels cells field of use.
2. With respect to subject inventions developed under this agreement having
application in the hydrocarbon conversion devices for fuels cells field of
use developed jointly by Contractor and Subcontractor, Subcontractor agrees
to assign to Contractor the entire right, title, and interest throughout
the world in each subject invention in the hydrocarbon conversion devices
for fuels cells field of use. Subcontractor and Contractor will each retain
undivided interests in the inventions for other fields of use.
3. With respect to subject inventions developed under this agreement having
application in the catalysts composition and production procedure field of
use developed jointly by Contractor and Subcontractor, Contractor agrees to
assign to Subcontractor the entire right, title, and interest throughout
the world in each subject invention in the catalyst composition and
production procedure fields of use, except in the hydrocarbon conversion
devices for fuel cells field of use. Subcontractor and Contractor will each
retain undivided interests in the inventions for other fields of use.
