Changes to Federal Administrative Charge for non-DOE funded projects

Changes to Federal Administrative Charge for non-DOE funded projects
Dear valued ORNL partner, 
 
I want to ensure you are aware of an upcoming change to the Department of Energy (DOE) Federal Administrative Charge (FAC) as a result of a change to order DOE O 522.1A Pricing of Departmental Materials and Services 10-28-24. FAC is an administrative fee applied to non-DOE funded projects. This charge is designed to recover DOE’s costs for providing oversight and ensuring compliance with federal regulations related to these projects.
 
DOE is eliminating most legacy exemptions. They are establishing a uniform rate of 1%, which is a reduction from the current rate of 3%.  The new rate will apply to funding obligated on or after October 1, 2025. A limited number of exemptions, outlined in the statue, will remain in effect for reimbursable work.
 
Please review the DOE O 522.1A Pricing of Departmental Materials and Services 10-28-24.pdf, available HERE, outlining the change.
 
Thank you for your attention to this matter.
 
Best regards,
 
Shaun Gleason, PhD
Director, Partnerships
Oak Ridge National Laboratory
gleasonss@ornl.gov
865-574-1051






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