Prime Contract – Clause I.87



(a) The Contractor shall be responsible for maintaining, as an integral part of its organization, effective systems of management controls for both administrative and programmatic functions. Management controls comprise the plan of organization, methods, and procedures adopted by contractor management to reasonably ensure that:

    1. Mission and functions assigned to the contractor are properly executed;
    2. Systems and controls employed by the contractor are documented and satisfactory to DOE;
    3. All levels of management are accountable for effective management systems and internal controls within their areas of assigned responsibility;
    4. Provide reasonable assurance that Government resources are safeguarded against theft, fraud, waste, and unauthorized use;
    5. Promote work and worker safety;
    6. Promote efficient and effective operations including consideration of outsourcing of functions;
    7. Reduce or eliminate operational risks to Government facilities;
    8. All obligations and costs incurred are allowable in accordance with the intended purposes and the terms and conditions of the contract;
    9. All revenues, expenditures, transactions and assets are properly record, manage, and report;
    10. Financial, statistical and other necessary reports are maintained in an accurate, reliable, and timely manner, with proper accountability and management controls;
    11. Systems are periodically reviewed to provide reasonable assurance that the objectives of the systems are being accomplished and that its controls are working effectively
    12. Such systems shall be an integral part of the Contractor’s management functions, including defining specific roles and responsibilities for each level of management,, and holding employees accountable for the adequacy of the management systems and controls in their areas of assigned responsibility;
    13. The Contractor shall, As part of the internal audit program required elsewhere in this contract, periodically review the management systems and controls employed in programs and administrative areas to ensure that they are adequate to provide reasonable assurance that the objectives of the systems are being accomplished and that these systems and controls are working effectively. Annually, or at other intervals directed by the Contracting Officer, the Contractor shall supply to the Contracting Officer copies of the reports reflecting the status of recommendations resulting from management audits performed by its internal audit activity and any other audit organization. This requirement may be satisfied in part by the reports required under paragraph (i) of 48 CFR 970.5232-3, Accounts, records, and inspection; and

(b) The Contractor shall be responsible for maintaining, as a part of its operational responsibilities, a baseline quality assurance program that implements documented performance, quality standards, and control and assessment techniques.

(c) On an annual basis, the Contractor through an officer at a level above the Laboratory Director, shall submit an assurance to the Contracting Officer that the system of management controls, including all systems revised in accordance with the Special Contract Requirements H clause of this Contract, entitled, “Application of DOE Contractor Requirements Documents”, is adequate to assure that the objectives of the management system are being accomplished and that the system and controls are effective and efficient.”