Interesting insight into the fee structure on the UC side of LANS/LLNS

Anonymously contributed:

Interesting insight into the fee structure on the UC side of LANS/LLNS

http://www.universityofcalifornia.
edu/regents/minutes/2010/joint52.pdf

Highlights....

The (UC) President recommended that he be authorized to expend, for the following purposes and in the following amounts, from the University’s net share of Los Alamos National Security (LANS) and Lawrence Livermore National Security (LLNS) LLC income earned between September 30, 2009 and December 31, 2010:

1. Supplemental compensation and other payments (including accruals) approved by the Regents for certain LANS LLC and LLNS LLC employees, from July 1, 2010 through June 30, 2011 – $2.0 million ($2.2 million in 2009-2010).

2. An appropriation to the Office of the President budget for federally unreimbursed costs of University oversight of its interest in LANS LLC and LLNS LLC, paid or accrued July 1, 2010 through June 30, 2011, including but not limited to an allocable share of the costs of the Regents, the President, the Provost, Research Security Office, Human Resources, Policy and Analysis, Financial Management, Compliance and Audit, Laboratory Management Office, External Relations, Office of Research, the General Counsel, and the University appointed Governors on the Boards of the LLCs – $4.0 million ($3.85 million in 2009-2010). The increase reflects more accurate cost allocation for UC Office of the President (UCOP) LLC efforts.

3. An appropriation in 2010-11 to a post-contract contingency fund – $1.3 million (no change from 2009-2010).

4. An appropriation for research funding in accordance with the Laboratory Fees Research Program process for 2010-2011 – $19.9 million ($18.7 million in 2009-2010). A Reserve will be allocated for research in the amount of $1.0 million ($1.15 million in 2009-2010). The Reserve will be available to potentially fund new projects, supplement projects that may exceed their allocation, or in the event there is a reduction in fees in future years, the reserve will allow projects approved for a three-year period to be fully funded. The Spend Plan for research is subject to annual approval.

5. An appropriation of $0.3 million for 2010-2011 for administration of ongoing awards and the upcoming competition review and award process.

Summary

Estimated Funds Available
Estimated Net FY 2010 LANS/LLNS LLC Management Fee = $29.50M
Estimated Carryover from 2009-2010 = $ .59M
Total = $30.09M

Recommended Allocation
Supplemental compensation = $ 2.0M
UCOP oversight = $ 4.0M
Post-contract contingency = $ 1.3M
2010-2011 Lab Fees Research Program = $19.9M
Competition Review & Award Process 2011 = $ 0.3M
Reserve for Research Awards 2010-2011 = $ 1.0M
($1.08M remains from 2009-2010)
Contingency for factors affecting the final fee $ 1.59M (to keep at $3.0M level)
Total Allocation for 2010-2011 = $30.09M