- Introduction
- Table of Commonly Referenced OCFO Policies and Procedures
- Construction Work in Progress
- LBNL Procurement Standard Practices, Section 36 Construction and A/E Services
- Subject 36.1, Construction Subcontracting, 5/9/08 revision
- Subject 36.2, Architect-Engineer Services, 3/28/08 revision
- Multi-Task A/E Subcontracts Flowchart
1.Introduction
The LBNL Office of the Chief Financial Officer Procurement and Property Management maintains a website of current Policies and Procedures. The table below lists OCFO Policies and Procedures commonly applicable to the execution of construction projects by the Design and Construction Management department.
2.Table of Commonly Referenced OCFO Policies and Procedures
Policy or Procedure Title & Hyperlink | Policy or Procedure - Summary |
Miscellaneous Invoice Requests | The purpose of this policy is to provide guidance and establish requirements for the preparation and submission of miscellaneous (manual) invoice requests, and to establish a policy for year-end accruals for non Work-for-Others projects or non-payroll items. |
Organization Burden | The purpose of this policy and procedure is to provide guidance on the management and administration of Laboratory organization burdens (costs for the general management and administration of the Laboratory's scientific and support divisions or departments). |
Recharges | The purpose of this policy is to provide all Laboratory recharge centers with a common framework for the equitable and accountable distribution of user charges, which are based on the costs of the facilities, goods and services provided. |
Cost Allowability | The purpose of this policy is to provide general guidelines for the Laboratory in determining allowable costs, in compliance with DOE Contract 31, the Federal Acquisition Regulation (FAR) and the Department of Energy Acquisition Regulation (DEAR). This policy is not intended to amend or replace any Federal, State, or regulatory requirements. For more specific details, refer to DOE Contract 31, the FAR and the DEAR. |
Resource Adjustments | The purpose of this policy is to define the requirements and procedures to be followed for preparing, approving, and processing resource adjustments at Lawrence Berkeley National Laboratory (LBNL). |
Signature Authority for Financial Transactions | The purpose of this policy and procedure is to define the roles and responsibilities of Laboratory and/or UC employees who have been designated as authorized signers for approving financial transactions, and the process by which financial signature authority is delegated at the Laboratory. |
Invoice Certifications | This policy defines LBNL requirements and procedures for certifying vendor invoices. Approval of procurement costs (i.e., commitment of funds) should have already been accomplished during the requisition process. |
Capital Equipment Fabrications | The purpose of this policy and procedure is to provide guidance for the identification, processing and accounting of capital equipment fabrications at the Laboratory. |
Construction Work in Progress | The purpose of this policy is to define the guidelines for appropriately managing Construction Work in Progress (CWIP) projects at the Laboratory. |
Obtaining Goods and Services | LBNL RPM, Procurement of Goods and Services |
Procurement | Procurement Standards Practices Manual |
Buy American Act, Procurement Standard Practice 25.1 | This standard practice describes the subcontract requirements of the Buy American Act and the American Recovery and Reinvestment Act of 2009 ("Recovery Act" or "ARRA"), and the applicable exceptions to the Acts. |
Procurement Forms | Commonly used forms listed below: |
Sole Source Form | This form is submitted to Procurement, with your Purchase Requisition for:
Further information about sole source transactions appears in Standard Practice 6.2. |
eProcurement Requisition Worksheet | This worksheet may be printed, filled-in by hand, and given to a PRP Requisition Preparer to enter as an eProcurement requisition. You can also complete the form using Microsoft Word, save it, and email the filled-in form to a requisition preparer. The worksheet is setup similar to the eProcurement requisition screens and has Description areas which may be copied and pasted into ePro. |
General Provisions | Terms and conditions included with LBNL subcontracts |
Advance Acquisition Alert Form | Use this easy-to-complete Microsoft Word form to alert Procurement 30 days in advance of an upcoming requirement over $500,000, so that Procurement can work with you to plan the acquisition. |
Request for Consultant/Personal Services Agreement | To obtain Consultant/Personal Services:
|
Task Request for A/E Services | For Architecture/Engineering (A/E) consultant subcontracts or Change Orders to those subcontracts, a Task Request for A/E Services form is filled out, routed for signatures by the Project Manager, and then forwarded to the assigned Subcontract Administrator in Procurement. The Task Request and A/E fee proposal should be attached to the Requisition by the Project Coordinator and sent electronically to the Subcontract Administrator. |
Subcontractor Job Hazards Analysis (SJHA) | Attached to ePro requisitions and sent to subcontractors doing on- site hands-on work. The form is located at the Non-Construction Subcontractor Safety Assurance website |
ARRA Invoice Addendum | Provided by Procurement to the subcontractor. Completed by subcontractors and submitted to LBNL along with its standard invoice for work funded by the American Recovery and Reinvestment Act of 2009 (ARRA). |
Subcontractor Award Memo | For construction subcontracts of more than $100K, a Subcontract Award Memo is prepared by the Project Manager, signed by the DCM Department Head, and forwarded to Procurement. |
Construction Subcontract Change Authorization | For Change Orders to a construction subcontract, a Construction Subcontract Change Authorization form is prepared by the Project Manager and forwarded to the Procurement Subcontract Administrator. The subcontractor’s change request, with detailed breakdown, and the LBNL independent estimate are attached to this form. |
3.Construction Work in Progress Procedure – OCFO
Construction Work in Progress (CWIP)
Lawrence Berkeley
National Laboratory Financial Policies and Procedures Part I
Originally issued: August 15, 2005
Effective date: December 31, 2009
Revision number: 1
Scheduled review date: December 31, 2011 (every two years) Primary contact: Controller
Summary
The purpose of this policy is to define the guidelines for appropriately managing Construction Work in Progress (CWIP) projects at Lawrence Berkeley National Laboratory (LBNL).
Policy
Overview
CWIP is a balance sheet account that the Laboratory maintains and manages (through an accounting process) to reflect costs incurred for plant and capital equipment (PACE). The Laboratory will ensure that costs incurred for plant and capital equipment purchases are properly accounted for (i.e., timely closing, asset identification, tagging, capitalization, and depreciation) in accordance with DOE requirements.
Maintaining a CWIP account complies with accounting standards and capitalization criteria in the Statements of Federal Financial Accounting Standards (SFFAS) No. 6, Chapter 2.34 and the Department of Energy (DOE) Accounting Handbook, Chapter 10,1.h. The Laboratory CWIP account reflects costs associated with PACE work in progress accumulated during the acquisition, fabrication and/or construction period. When the project is completed and/or the asset has been identified (tagged) and placed in service, it is capitalized and transferred to an asset account for depreciation.
Procedures
Refer to the following table for criteria, guidelines and procedures for processing PACE projects for CWIP.
Roles and Responsibilities
Divisions
- Ensure appropriate funding is available at the project ID level.
- Ensure equipment, fabrication, construction, LDRD and CSR purchases (requisitions) meet the criteria of capital equipment as appropriate and are charged to the correct fund type and Management Analysis and Reporting System (MARS) program code (refer to PACE criteria, guidelines and procedures table above).
- Ensure WFO equipment purchases meet terms and conditions of WFO contract.
- Track all associated costs within that project ID; ensuring the total cost is greater than $50K to meet the established criteria, as appropriate. Stay within approved budget and date projected for project to be completed.
- Complete PACE Life Cycle Form to open and/or close projects as applicable, and submit electronically to Property Accounting.
- When appropriate, close the project ID in FMS.
Property Accounting
- Verifying PACE form data and submit to Budget Office to open project.
- Ensure overall management and oversight of CWIP process. Work with stakeholders to ensure CWIP processes are performed in a timely and accurate manner.
- Ensure appropriate funding source is used.
- Verify costs of closed CWIP projects.
- Submit electronic notification to Property Management verifying costs for asset tagging, if appropriate.
- Capitalize asset when appropriate and transfer costs to asset account, completing the CWIP process.
- Reconcile CWIP project accounts to the Laboratory Asset Management System (AMS) for Property Management.
Budget Office
- Verify appropriate funds are available at the B&R level when project ID is in “request” status in FMS.
- If appropriate, open project ID in FMS (change status to “open”).
- Property Management
- Identify and tag asset when notified via email from Property Accounting.
- Enter asset into LBNL asset inventory database.
- Notify Property Accounting electronically verifying property is identified and asset is tagged.
Property Management
- Identify and tag asset when notified via email from Property Accounting.
- Enter asset into LBNL asset inventory database.
- Notify Property Accounting electronically verifying property is identified and asset is tagged.
Adjustments for Non Capital Projects
In cases where the project did not meet the capitalization criteria (non capital funds), the following process applies:
- If the equipment costs of a non capital project are charged to a CWIP project, and require an adjustment to transfer the costs into the appropriate operating expense, the Division prepares a resource adjustment to reflect the appropriate changes.
- If the equipment costs have been removed from CWIP and placed into a capital asset account and General Accounting has begun depreciating the asset:
- The Division prepares a resource adjustment to move the costs into the appropriate operating expense.
- If the cost was incurred in a prior year, and the B&R is closed, consult the Budget Office’s Direct Budget Group for the appropriate B&R to use. If the B&R that should have been used is closed, also contact the Direct Budget Group for the new B&R to use.
- Notify General Accounting of the change via email, so that depreciation of the asset can be reversed, and the asset can be removed from the Property Accounting System.
The following diagram illustrates the CWIP process flow: (next page)
Authority
- DOE Accounting Handbook, Chapter 10, Plant and Capital Equipment
Contacts
- Manager, General Accounting
- Controller, Office of the CFO
- Property Accounting
- Manager, Procurement and Property
- Financial Policy Office
Glossary
Abandoned projects: The cancellation of all or part of a contract or purchase order to procure, manufacture, or assemble an item of Plant and Capital Equipment (PACE). These costs, less any salvage credits, shall be distributed over the remaining units of property within the project for project accounting purposes, except where such distribution significantly distorts the cost of the remaining property units. Where such distortion occurs, the costs of the abandoned project or project segment may be closed from Construction Work in Progress to Abandoned Projects (Budget and Reporting Classification Code YN, Other Costs and Credits). All charges to abandoned projects shall be approved by DOE.
Beneficial occupancy: The point at which the facility is turned over to the user or occupants to allow utilization of the assets prior to final acceptance of the facility.
Capital equipment: A movable, tangible item, with a value of > $50K, including labor, burdens, transportation, modifications, etc., and a useful life of > two years.
Capitalization: The act of closing (or reclassifying) acquisition costs of an asset, which allows it to be allocated or depreciated (expensed) over the life of the asset.
Construction: The installation, assembly or creation of a new facility, the addition, expansion, improvement, or replacement of an existing facility, or the relocation of a facility. Construction includes equipment installed in and made part of the facility and related site preparation (excavation, filling and landscaping, or other land improvements), and the facility design.
Construction Work in Progress (CWIP): A holding account that captures costs incurred for property, plant and equipment that complies with accounting standards and capitalization criteria in the Statements of Federal Financial Accounting Standards (SFFAS) No. 6, Chapter 2.34 and the DOE Accounting Handbook, Chapter 10, 1.h.
Contracting Supporting Research (CSR): The CSR funds are provided to the Laboratory by the University of California. For research at the Laboratory, selection of the projects funded with CSR funds are made at the discretion of the Laboratory Director or designee.
Depreciation: The allocation of the cost of an asset over a period of time for accounting purposes. A decline in the value of a property due to general wear and tear or obsolescence.
Fabrication: A tangible, self-constructed asset, valued at > $50K, including LBNL labor, and applicable burdens, transportation, modifications, etc., with a useful life of > two years. It must be a unique or custom built device not available in the open market. To qualify as a fabrication, any modification or improvement of off-the-shelf equipment must be a betterment that significantly increases its value, functionality, or life.
Personal Property: Property that can be moved and that is not permanently affixed to and part of real estate.
Plant: Land, building, and improvements, associated infrastructure (i.e., electrical substations, piping systems, roads, etc.) and construction in process. Does not include movable equipment.
Plant and Capital Equipment (PACE): Land, land rights, depletable resources, improvements to land, buildings and structures, utilities, and equipment. For the purposes of this policy, PACE is synonymous with property, plant and equipment (PP&E).
Property, Plant and Equipment (PP&E): Synonymous with plant and capital equipment (PACE).
Related Documents
● LBNL Capital Equipment Fabrication policy, Part I – Chapter 2.02
- PACE Life Cycle Form
LBNL Procurement Standard Practices, Section 36 Construction and A/E Services
Subject 36.1, Construction Subcontracting, 5/9/08 revision
Subject 36.2, Architect-Engineer Services
Current LBNL Procurement Standard Practices can be found in the Laboratory Procurement Standard Practices Manual, available online at:
http://www.lbl.gov/Workplace/CFO/pro/LBNL/SP/index.html
MULTI-TASK A/E SUBCONTRACTS FLOWCHART
