text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``NSF Major Research Facility Reform 
  Act of 2016''.
  
  SEC. 2. DEFINITIONS.
  
      In this Act:
              (1) Director.--The term ``Director'' means the Director of 
          the Foundation.
              (2) Foundation.--The term ``Foundation'' means the National 
          Science Foundation established under section 2 of the National 
          Science Foundation Act of 1950 (42 U.S.C. 1861).
              (3) Major multi-user research facility.--The term ``major 
          multi-user research facility'' means a science and engineering 
          infrastructure construction project that exceeds the lesser of 
          10 percent of a Directorate's annual budget or $100,000,000 in 
          total project cost that is funded in the major research 
          equipment and facilities construction account, or any successor 
          thereto.
  
  SEC. 3. MANAGEMENT AND OVERSIGHT OF LARGE FACILITIES.
  
      (a) Large Facilities Office.--The Director shall maintain a Large 
  Facilities Office. The functions of the Large Facilities Office shall 
  be to support the research directorates in the development, 
  implementation, and assessment of major multi-user research facilities, 
  including by--
              (1) serving as the Foundation's primary resource for all 
          policy or process issues related to the development and 
          implementation of major multi-user research facilities;
              (2) serving as a Foundation-wide resource on project 
          management, including providing expert assistance on 
          nonscientific and nontechnical aspects of project planning, 
          budgeting, implementation, management, and oversight;
              (3) coordinating and collaborating with research 
          directorates to share best management practices and lessons 
          learned from prior projects; and
              (4) assessing projects during preconstruction and 
          construction phases for cost and schedule risk.
      (b) Oversight of Large Facilities.--The Director shall appoint a 
  senior agency official as head of the Large Facilities Office whose 
  responsibility is oversight of the development, construction, and 
  transfer to operations of major multi-user research facilities across 
  the Foundation.
      (c) Policies for Large Facility Costs.--
              (1) In general.--The Director shall ensure that the 
          Foundation's polices for developing and maintaining major 
          multi-user research facility construction costs are consistent 
          with the best practices described in the March 2009 Government 
          Accountability Office Report GAO-09-3SP, or any successor 
          report thereto, the Uniform Guidance in 2 CFR part 200, and the 
          Federal Acquisition Regulation as appropriate.
              (2) Cost proposal analysis.--
                      (A) General requirement.--The Director shall ensure 
                  that an external cost proposal analysis is conducted 
                  for any major multi-user research facility.
                      (B) Resolution of issues found.--The Director, or a 
                  senior agency official within the Office of the 
                  Director designated by the Director, shall certify in 
                  writing that all issues identified during the cost 
                  analysis, including any findings of unjustified or 
                  questionable cost items, are resolved before the 
                  Foundation may execute a construction agreement with 
                  respect to the project.
                      (C) Transmittal to congress.--The Director shall 
                  transmit each certification made under subparagraph (B) 
                  to the Committee on Science, Space, and Technology of 
                  the House of Representatives, the Committee on 
                  Commerce, Science, and Transportation of the Senate, 
                  the Committee on Appropriations of the House of 
                  Representatives, and the Committee on Appropriations of 
                  the Senate.
              (3) Incurred cost audits.--The Director shall ensure that 
          an incurred cost audit is conducted at least biennially on any 
          major multi-user research facility, in accordance with 
          Government Auditing Standards as established in Government 
          Accountability Office Report GAO-12-331G, or any successor 
          report thereto, with the first incurred cost audit to commence 
          no later than 12 months after execution of the construction 
          agreement.
              (4) Contingencies.--
                      (A) In general.--Except as provided for in 
                  subparagraph (C)(ii), the Foundation shall--
                              (i) provide oversight for contingency in 
                          accordance with Cost Principles Uniform 
                          Guidance in 2 CFR part 200.433, or any 
                          successor thereto, and the Federal Acquisition 
                          Regulation as appropriate, except as provided 
                          in this paragraph; and
                              (ii) not make any award which provides for 
                          contributions to a contingency reserve held or 
                          managed by the awardee, as defined in 2 CFR 
                          part 200.433(c).
                      (B) Updating policy manual.--The Foundation shall 
                  update its Large Facilities Manual and any other 
                  applicable guidance for contingencies on major multi-
                  user research facilities with regard to estimating, 
                  monitoring, and accounting for contingency.
                      (C) Foundation requirements.--The policy updated 
                  under subparagraph (B) shall require that the 
                  Foundation--
                              (i) may only include contingency amounts in 
                          an award in accordance with Cost Principles 
                          Uniform Guidance in 2 CFR part 200.433, or any 
                          successor thereto, and the Federal Acquisition 
                          Regulation as appropriate; and
                              (ii) shall retain control over funds 
                          budgeted for contingency, but may disburse 
                          budgeted contingency funds incrementally to the 
                          awardee to ensure project stability and 
                          continuity.
                      (D) Awardee requirements.--The policy updated under 
                  subparagraph (B) shall require that an awardee shall--
                              (i) provide verifiable documentation to 
                          support any amounts proposed for contingencies; 
                          and
                              (ii) support requests for the release of 
                          contingency funds with evidence of a bona fide 
                          need and that the amounts allocated to the 
                          performance baseline are reasonable and 
                          allowable.
                      (E) Current awardees.--The Foundation shall work 
                  with awardees for whom awards with contingency 
                  provisions have been made before the date of enactment 
                  of this Act--
                              (i) to determine if any of their use of 
                          contingency funds represents out-of-scope 
                          changes for which Foundation's prior written 
                          approval was not obtained; and
                              (ii) if out-of-scope changes are found, to 
                          identify any financial action that may be 
                          appropriate.
              (5) Management fees.--
                      (A) Definition.--In this paragraph, the term 
                  ``management fee'' means a portion of an award made by 
                  the Foundation for the purpose of covering ordinary and 
                  legitimate business expenses necessary to maintain 
                  operational stability which are not otherwise allowable 
                  under Cost Principles Uniform Guidance in 2 CFR part 
                  200, Subpart E, or any successor regulation thereto.
                      (B) Limitation.--The Foundation may provide a 
                  management fee under an award only if the awardee 
                  provides justification as to the need for such funds. 
                  In such cases, the Foundation shall take into account 
                  the awardee's overall financial circumstances when 
                  determining the amount of the fee if justified.
                      (C) Financial information.--The Foundation shall 
                  require award applicants to provide income and 
                  financial information covering a period of no less than 
                  3 prior years (or in the case of an entity established 
                  less than 3 years prior to the entity's application 
                  date, the period beginning on the date of establishment 
                  and ending on the application date), including cash on 
                  hand and net asset information, in support of a request 
                  for management fees. The Foundation shall also require 
                  awardees to report to the Foundation annually any 
                  sources of non-Federal funds received in excess of 
                  $50,000 during the award period.
                      (D) Expense reporting.--The Foundation shall 
                  require awardees to track and report to the Foundation 
                  annually all expenses reimbursed or otherwise paid for 
                  with management fee funds, in accordance with Federal 
                  accounting practices as established in Government 
                  Accountability Office Report GAO-12-331G, or any 
                  successor report thereto.
                      (E) Audits.--The Inspector General of the 
                  Foundation may audit any Foundation award for 
                  compliance with this paragraph.
                      (F) Prohibited uses.--An awardee may not use 
                  management fees for--
                              (i) costs allowable under Cost Principles 
                          Uniform Guidance in 2 CFR part 200, Subpart E, 
                          or any successor regulation thereto;
                              (ii) alcoholic beverages;
                              (iii) tickets to concerts, sporting, or 
                          other entertainment events;
                              (iv) vacation or other travel for 
                          nonbusiness purposes;
                              (v) charitable contributions, except for a 
                          charitable contribution of direct benefit to 
                          the project or activity supported by the 
                          management fee;
                              (vi) social or sporting club memberships;
                              (vii) meals or entertainment for 
                          nonbusiness purposes;
                              (viii) luxury or personal items;
                              (ix) lobbying, as described in the Uniform 
                          Guidance at 2 CFR 200.450; or
                              (x) any other purpose the Foundation 
                          determines is inappropriate.
                      (G) Review.--The Foundation shall review management 
                  fee usage for each Foundation award on at least an 
                  annual basis for compliance with this paragraph and the 
                  Foundation's Large Facilities Manual.
              (6) Report.--Not later than 12 months after the date of 
          enactment of this Act, the Director shall submit to Congress a 
          report describing the Foundation's policies for developing and 
          managing major multi-user research facility construction costs, 
          including a description of any aspects of the policies that 
          diverge from the best practices recommended in Government 
          Accountability Office Report GAO-09-3SP, or any successor 
          report thereto, and the Uniform Guidance in 2 CFR part 200.
              (7) Noncompliance.--The Director shall ensure that the 
          Foundation shall take the enforcement actions specified in 45 
          CFR 92.43 for noncompliance with this section.
  
  SEC. 4. WHISTLEBLOWER EDUCATION.
  
      (a) In General.--The Foundation shall be subject to section 4712 of 
  title 41, United States Code.
      (b) Education and Training.--The Foundation shall provide education 
  and training for Foundation managers and staff on the requirements of 
  such section 4712, and provide information on such section to all 
  awardees, contractors, and employees of such awardees and contractors.
  
              Passed the House of Representatives June 14, 2016.
  
              Attest:
  
                                                   KAREN L. HAAS,
  
                                                                   Clerk.
target: (This measure has not been amended since it was reported to the House on June 13, 2016.  NSF Major Research Facility Reform Act of 2016  (Sec. 3) This bill directs the National Science Foundation (NSF) to maintain a Large Facilities Office to support its research directorates in the development, implementation, and assessment of major multi-user research facilities.   The NSF shall appoint a senior agency official to head the Office, whose responsibility shall be to oversee development, construction, and transfer to operations of major multi-user facilities across the NSF.  The bill requires:  an external cost proposal analysis for any major multi-user research facility;  the resolution of all issues identified, including any unjustified or questionable cost items; and biennial incurred cost audits of any such facility.   The NSF shall not make any award which arranges for contributions to an awardee's contingency reserve. (Contingency is the part of a budget estimate of future costs associated with possible events or conditions arising from causes whose precise outcome is indeterminable at the time of estimate, and that experience shows will likely result, in aggregate, in additional costs for the approved activity or project.) The NSF shall update its Large Facilities Manual and any other applicable guidance for estimating, monitoring, and accounting for contingencies on major multi-user research facilities.  The updated policy shall state that the NSF: (1) may only include contingency amounts in an award meeting specified criteria; and (2) shall retain control over funds budgeted for contingency, but may disburse budgeted contingency funds incrementally to an awardee to ensure project stability and continuity. An awardee shall: (1) furnish verifiable documentation to support proposed contingency amounts, and (2) support requests for the release of contingency funds with evidence of a bona fide need and reasonable and allowable allocations to the performance baseline.  The NSF shall work with current awardees to: (1) determine if any of their use of contingency funds represents out-of-scope changes for which prior NSF written approval was not obtained, and (2) identify appropriate financial action regarding any out-of-scope changes found.   The NSF may include management fees under an award for ordinary and legitimate business expenses, not otherwise allowable, only if the awardee furnishes a justification of need. The NSF shall require award applicants to report:  income and financial information covering at least three prior years, including cash on hand and net asset information, in support of a request for management fees; and any sources of nonfederal funds received in excess of $50,000 during the award period.  The NSF shall require awardees to track and report annually all expenses reimbursed or otherwise paid for with management fee funds. The bill specifies prohibited uses for management fees.  (Sec. 4) The bill subjects the NSF to the pilot program for enhancement of contractor protection from reprisal for (whistleblower) disclosure of certain information.  The NSF shall arrange for education and training for NSF managers and staff on the pilot program and furnish information on it to all awardees and contractors and their employees. 
feat_title: NSF Major Research Facility Reform Act of 2016