Acquisition Letters (ALs) are issued under the authorities of the Senior Procurement Executives of DOE and NNSA. ALs are intended for use by procurement professionals of DOE and NNSA, primarily Contracting Officers, and other officials involved in the acquisition process. Only DOE and NNSA Contracting Officers make definitive interpretations of how ALs affect DOE and NNSA contracts and related procedures. ALs are effective upon issuance and until rescinded.

Home Office Expenses for Management and Operating Contracts

AL 2012-04 Rev.1

6/25/2019

What is the purpose of this AL/FAL?

DOE Acquisition Regulation (DEAR) 970.3102-3-70, “Home office expenses,” establishes DOE policy for reimbursement of home office expenses under a M&O contract. This AL provides application guidance to contracting officers on how to: (1) determine if the they should reimburse any home office expenses; (2) calculate a reasonable amount in advance (fixed amount or ceiling) for such expenses; (3) document the rationale for their determinations and calculations; (4) obtain appropriate reviews; and (5) ensure they pay only for what they negotiated.