Energy Management:

DOE/Martin Marietta Royalty-Sharing Agreement

RCED-88-194: Published: Aug 12, 1988. Publicly Released: Oct 5, 1988.

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Keith O. Fultz
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In response to a congressional request, GAO reviewed an agreement between the Department of Energy (DOE) and the operator of two of its facilities to determine whether the agreement violated a legislative restriction against DOE augmentation of its appropriation.

GAO found that: (1) the contractor's deposit of royalties into an account which it controlled was not an improper augmentation of the DOE appropriation; (2) the contractor could also use the royalties to carry out technology transfer activities authorized under the agreement without improperly augmenting the DOE appropriation; (3) DOE decided to continue depositing reimbursements of DOE patent costs into the Treasury; and (4) DOE had not decided whether it would use the reimbursements for patent and licensing costs of waived inventions for the contractor to cover other contract activities or deposit them into the Treasury.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: DOE concurred with the recommendation that any reimbursement of seed money received will be deposited into the U.S. Treasury.

    Recommendation: The Secretary of Energy should direct the Oak Ridge Operations Office Manager to deposit into the U.S. Treasury all royalties received under Article 69 that are used to provide reimbursement for seed money provided to the contractor.

    Agency Affected: Department of Energy


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