DATE: April 1, 2019

SUBJECT: DOE Research and Innovation Act Two-Year Cost Share Pilot Program

TO: Procurement Directors (PDs)/Heads of Contracting Activities (HCAs)/Contracting Officers/Contract Specialist
FROM: Director, Contract and Financial Assistance Policy Division, Office of Policy, Office of Acquisition Management


This Policy Flash is to advise you of changes to the cost sharing requirements for applied research and development activities performed by institutes of higher education (IHEs) and nonprofit institutions/organizations (NPOs). This Flash supersedes PF 2019-10.

On April 1, 2019, DOE published a Final Rule in the Federal Register to amend its current regulations regarding cost share under the Energy Policy Act of 2005 (EPACT 2005) to correspond with the provisions of the DOE Research and Innovation Act of 2018 (Innovation Act). Section 108 of the Innovation Act amended Section 988 of EPACT 2005 by instituting a pilot program exempting IHEs and NPOs for two years from the requirement that the Secretary require not less than 20 percent non-Federal cost share for research and development activities without issuing a waiver.

As a result, 2 CFR 910.130 was revised to add paragraph (b)(3) “The research or development activity is to be performed by an institution of higher education or nonprofit institution (as defined in section 4 of the Stevenson–Wydler Technology Innovation Act of 1980 (15 U.S.C. 3703)) during the two-year period ending September 27, 2020.”

Therefore, during the two-year pilot program, the Secretary is no longer required to sign a waiver to reduce or eliminate the cost sharing requirement for research and development activities of an applied nature for IHEs or NPOs.

View the Federal Register Notice of the Final Rule.

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