BRIEF

Policy Summary

This policy defines the guidelines for the initiation of the Stop Work process for the Berkeley Lab to ensure compliance with federal regulations and the University of California (UC) Department of Energy (DOE) Contract 31. The policy provides steps by which to mitigate situations arising from potential funds-control issues (i.e., incurring uncollectible and/or unallowable costs), with the goal of safeguarding the Laboratory while supporting its scientific mission.

Who Should Read This Policy

Any Berkeley Lab employee with financial responsibilities

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Contact Information

Budget Officer
Field Operations Manager

POLICY

A. Purpose

This policy defines the guidelines for the initiation of the Lawrence Berkeley National Laboratory (Berkeley Lab's) Stop Work process to ensure compliance with federal regulations and the UC-DOE Prime Contract (Contract 31). It is intended as a tool to mitigate situations arising from potential funds-control issues (i.e., incurring uncollectible and/or unallowable costs), with the goal of safeguarding the Laboratory while supporting its scientific mission.
A Stop Work to mitigate a funds-control violation would only be exercised after all other options have been exhausted (e.g., bridge funding or negotiation with the sponsor) — refer to the Stop Work Process Flowchart.

B. Persons Affected

Any Berkeley Lab employee with financial responsibilities

C. Exceptions

D. Policy Statement

1. The scope of this policy is limited to work activities funded by DOE and Work for Others (WFO) sponsors. A funds-control violation may result in a reduction in the Laboratory's fee, the assessment of fines, and/or a decrease in the Contract 31 performance measure rating, which could ultimately jeopardize the Laboratory's Contract 31 extension.
2. As a federal contractor, the Laboratory is required to adhere to Contract 31 regulations. If it is determined that an actual funds-control violation exists, work activities must stop until the issue is resolved.
3. Possible funds-control violations may include:
   1. DOE Direct-Funded Work
      1. Costs and/or commitments incurred in excess of funds available
      2. Costs and/or commitments incurred prior to receipt of funds in the Contract Modification (Mod)
      3. Costs and/or commitments incurred for activities outside of the purpose specified in the DOE work authorization
      4. Costs and/or commitments incurred after the expiration of limited-appropriation funds
   2. Work for Others (WFO)
      1. Costs incurred prior to receipt of an accepted reimbursable work agreement. A written agreement to perform work or provide a service for another federal agency or non-federal sponsor, signed by a contracting officer or an official with delegated authority to commit the Laboratory to perform WFO, and approved by an authorized approver of the sponsor.
      2. Costs incurred prior to receipt of DOE Approval.
      3. Costs incurred outside the reimbursable work agreement period of performance
      4. Costs incurred after the expiration of limited-appropriation funds
      5. Costs incurred outside of the reimbursable work agreement terms (Statement of Work). Activities must be allowable and allocable.
      6. Costs incurred in excess of funding
         1. For a federal reimbursable work agreement, "funding" is defined as the contract value.
         2. For a non-federal reimbursable work agreement, "funding" is defined as cash received (advance payments + invoice payments), plus approved bridge funding.
      7. Financial terms of reimbursable work agreement are not met by the sponsor
         1. Delinquent payment of invoices (generally invoices outstanding for 120 days or more)
         2. Sponsor refuses to reimburse the Laboratory
4. Other nonfinancial factors may result in the requirement to Stop Work
5. Initial Notification
   1. A potential funds-control violation may be identified by a division resource analyst, business manager, accounts receivable manager, Office of Sponsored Projects and Industry Partnerships (OSPIP) Contracts Officer, manager, Budget Office analyst, etc., and may result in the initiation of a Stop Work process (refer to Stop Work Process Flowchart). If a potential funds-control violation is identified, the identifier must notify the following individuals via e-mail:

      POSITION	NOTIFICATION
      Field Operations Manager	Mandatory
      Division Resource Analyst	Mandatory
      Budget Office Analyst	Mandatory
      Business Manager	Mandatory
      Division Director/Deputy Director	Division discretion
      Principal Investigator (PI)	Division discretion
      OSPIP Contracts Officer	If applicable
      Accounts Receivable Manager	If applicable
      Budget Officer	Field operations manager discretion

   2. The Chief Financial Officer (CFO) has the option of declaring a temporary Stop Work at any time during this process.
6. Determination
   1. The field operations manager establishes and facilitates a fact-finding team within two business days of receipt of notification in order to gather details and explore whether other funding sources are available and appropriate. The team should include those individuals noted as mandatory under the initial notification section, and others as appropriate. Based on the team's findings, a recommendation is made.
   2. If the team determines that a Stop Work course of action is unnecessary, the division resource analyst and field operations manager must still complete a Stop Work Initiation Form, summarizing the issue and the team's recommendation. The completed form is distributed by the field operations manager to the team for informational purposes.
   3. If the team recommends a Stop Work course of action, the division resource analyst and field operations manager complete the Stop Work Initiation Form, summarizing the team's recommendation and outlining the funding alternatives that were explored but determined not to be viable options. The Budget Office reviews the completed form.
   4. The field operations manager distributes the completed form simultaneously to the division's business manager and to the Budget Officer. The business manager reviews the Stop Work recommendation with the division director and notifies the Budget Officer if there are additional concerns prior to the CFO review. The Budget Officer reviews the recommendation with the CFO for final determination.
   5. Given the severity of a Stop Work situation, the determination process should be completed expeditiously.
7. Stop Work Notification
   1. If a Stop Work is the recommended course of action, the CFO reviews the issues with the division director, or designee. The division director is responsible for implementing the Stop Work. The Stop Work status is in effect until the funds-control violation is resolved.
   2. Once the division director concurs with the Stop Work recommendation, the sponsor will be notified. The OSPIP officer will handle the formal sponsor notification for WFO, and the division director for DOE direct-funded projects.
8. Resource Allocation
   1. Since activities on the project at issue must cease, principal investigators and staff effort must be redirected to other appropriate activity such as work on other projects or employee-between-assignment activity funded through Organization Burden.
   2. It is inappropriate to charge Research and Development costs to Organization Burden (see Organization Burden Policy). If alternatives are unavailable, the division must pursue appropriate alternatives with Human Resources (e.g., administrative leave, termination, etc.).
   3. In cases of abrupt funding termination, the division may seek non-Contract 31 funds (e.g., Fee or Gifts).

E. Roles and Responsibilities

F. Definitions/Acronyms

G. Recordkeeping Requirements

None

H. Implementing Documents

I. Contact Information

Budget Officer
Field Operations Manager

J. Revision History

DOCUMENT INFORMATION

Source Requirements Documents

• Department of Energy Accounting Handbook, Chapter 2, Administrative Control of Funds
• DOE Order 481.1C, Work for Others (Non-Department of Energy Funded Work)
• Principles of Federal Appropriations Law

Other Driving Requirements

Implementing Documents

Other References