4.46.10 Outside Expert Program

Manual Transmittal

October 26, 2017

Purpose

(1) This transmits revised IRM 4.46.10, LB&I Examination Process, Outside Expert Program.

Material Changes

(1) IRM 4.46.10.1 was retitled "Program Scope and Objectives" and rewritten to include internal control information as required by IRM 1.11.2.2.5, Address Management and Internal Controls. Rearranged existing content involving internal controls to place it in the new subsections listed below:

  • IRM 4.46.10.1.1, Background

  • IRM 4.46.10.1.2, Authority

  • IRM 4.46.10.1.3, Responsibilities

  • IRM 4.46.10.1.4, Program Objectives and Review

(2) Added a table of commonly used terms and acronyms to new IRM 4.46.10.1.5, Terms/Acronyms/Definitions.

(3) Added a list of website addresses and IRM references to new IRM 4.46.10.1.6, Related Resources.

(4) Added subsection 4.46.10.17 on funding request denials.

(5) Exhibit 4.46-10-1, LB&I Outside Expert Budget Committee Charter, was added.

(6) Editorial corrections were made throughout.

Effect on Other Documents

IRM 4.46.10 dated July 11, 2016 is superseded.

Audience

All LB&I employees

Effective Date

(10-26-2017)

Dennis A. Figg
Director, Program and Business Solutions
Large Business and International Division

Program Scope and Objectives

  1. Purpose. This IRM Section provides information for LB&I’s Outside Expert Program (OEP). Guidelines and procedures described below are to ensure proper procurement of outside expert services at the examination and Appeals levels.

  2. Audience. These procedures apply to LB&I employees who are responsible for identifying and requesting outside expert service needs.

  3. Policy Owner. The Outside Expert Program is under LB&I's Program and Business Solutions area.

  4. Program Owner. Director, Program and Business Solutions is responsible for executive oversight.

Background

  1. The Outside Expert Budget Committee (Committee) provides outside expert funding to LB&I examination teams to assist in the development of significant issues and to supplement the work of in-house personnel. The Committee provides management level oversight and guidance and acts as liaison for the OEP.

  2. The services of the outside experts are justified in special situations such as the following:

    • Strategically managed issues

    • Cases involving high impact precedent setting issues

    • High dollar issues

    • High impact compliance issues

    • Significant issues where in-house expertise is limited or not available

  3. When considering the use of an outside expert, the examination team management should discuss potential outside expert needs with team members and team management, including issue specialists and their management.

  4. Some key factors that should be considered when requesting outside expert assistance include the following:

    • Availability of in-house specialists

    • Strategic initiatives and campaigns impacted

    • Compliance/precedence impact

    • Tax revenue impact

    • Significant emerging issues

    • Counsel support for the legal foundation of the subject issue

    • High potential for issue remaining unagreed and resulting in litigation

Authority

  1. Federal Acquisition Regulation (FAR) Part 7, Acquisition Planning

  2. FAR Part 11, Describing Agency Needs

Responsibilities

  1. The Director, Program and Business Solutions, is responsible for providing executive oversight to the Committee and the OEP.

  2. An analyst (OEP analyst) is responsible for managing the daily operations of the program and facilitating Committee meetings.

  3. The Contracting Officer's Representative (COR) is responsible for assisting in preparation of the funding requests, acting as the primary liaison between the audit team and the outside expert, coordinating with Procurement officials to facilitate contract award, timely processing invoice payments and completing the contractor assessment in the Contractor Performance Assessment Reporting System (CPARS) at the end of the contract.

  4. The issue manager has oversight over the planning, execution and resolution of the issue. The issue manager is responsible for:

    1. Engaging all exam stakeholders in the funding request process

    2. Requesting COR assistance

    3. Assisting with the preparation of the funding request

    4. Securing funding approval signatures from stakeholders

    5. Timely submitting a fully documented procurement requisition package

    6. Ensuring the "post-award conference" is held

    7. Providing the case closing report

  5. Issue territory manager is responsible for reviewing the funding request and indicating approval or disapproval by signing the funding request form.

  6. Case manager should request the assignment of a COR and complete administrative steps to allow the COR to charge direct examination hours to the case. The case manager will also designate a point of contact for the issue if the COR does not have primary responsibility for providing specialist examination support on the subject case/issue.

  7. Point of Contact (POC) is responsible for assisting in the preparation of funding requests, ensuring the expert receives documentation to perform contract services and timely reviewing and approving contractor invoices by providing the COR with written acceptance via email.

  8. Engineering team and territory managers are responsible for reviewing and indicating their approvals or disapprovals of both the funding request and recommended expert by signing the funding request form for engineering issues.

  9. Economist team and territory managers are responsible for reviewing and indicating their approvals or disapprovals of both the funding request and recommended expert by signing the funding request form for economist issues.

  10. Transfer Pricing Practice (TTP) team and territory managers are responsible for reviewing and indicating their approvals or disapprovals of both the funding request and recommended expert by signing the funding request for transfer pricing issues.

  11. Financial products team and territory managers are responsible for reviewing and indicating their approvals or disapprovals of both the funding request and recommended expert by signing the funding request form for financial product issues.

  12. Counsel is responsible for reviewing the performance work statement for all funding requests and providing appropriate feedback to ensure the terms would facilitate acceptable contract deliverables. For requests over $75K, Counsel is responsible for providing a memo outlining the recommendation to procure outside expert services. Counsel is also responsible for indicating approval or disapproval of both the funding request and recommended expert by either signing the funding request form or sending a secured email to the COR or issue manager.

  13. Technical specialist is responsible for working with the audit team for funding requests over $75K and providing appropriate feedback on the statement of work to ensure the terms would facilitate acceptable deliverables. The technical specialist is responsible for providing a memo explaining the issue background and logical support for procuring an outside expert as well as indicating approval or disapproval of the funding request.

  14. Director of Field Operations (DFO) is responsible for reviewing and approving funding requests of $500K or more that originate within his/her jurisdiction. When necessary, the DFO is also responsible for requesting an ad hoc meeting for the Committee to consider a funding request.

  15. LB&I Practice Area Directors are responsible for reviewing and approving funding requests of $1M or more that originate within his/her jurisdiction.

  16. Committee is responsible for aligning expert funding with LB&I strategic initiatives and distributing funds in a fair and objective manner based on the merits of the requests. Committee members will follow the procedures identified in the OEP Budget Committee Charter, see Exhibit 4.46.10-1.

  17. All key internal stakeholders directly associated with examination of the subject should be involved in the outside expert process throughout the life of the project.

Program Objectives and Review

  1. Program Goals: This IRM provides the fundamental knowledge and procedural guidance for LB&I examination teams engaged in procuring outside expert services.

  2. Program Reports: At a minimum, the OEP Analyst should monitor the approved and awarded contracts and provide:

    • Quarterly status updates to the Committee, for prior year open contracts

    • Monthly status updates to the Committee for current fiscal year contracts

Terms/Acronyms/Definitions

  1. The following table shows commonly used terms, acronyms and their definitions.

    Term/Acronym Definition
    COR Contracting Officer’s Representative
    Committee OEP Budget Committee
    CPARS Contractor Performance Assessment Reporting System
    Director Director, Program and Business Solutions
    DFO Director of Field Operations
    FAR Federal Acquisition Regulation
    JOFOC Justification for Other than Full and Open Competition
    OEP Outside Expert Program
    P&P Policy and Procedure
    PPS Procurement for Public Sector
    POC Point of Contact
    PII Personally Identifiable Information
    SBU Sensitive but Unclassified
    TTPO Treaty and Transfer Pricing Operations
    Issue Team Manager Typically the team manager assigned to the examination

Related Resources

  1. IRM 1.35.24 , Financial Accounting, Establishing Commitments and Obligations

  2. IRM 1.35.3 , Financial Accounting, Receipt and Acceptance Guidelines

  3. IRM 10.23.2 , Personnel Security, Contractor Investigations

  4. Procurement Policy and Procedures Memorandum No. 32.7, The Invoice Processing Platform (IPP)

  5. Procurement Policy and Procedures Memorandum No. 46.5, Evidentiary Documentation in Support of Receipt and Acceptance and Invoice Reviews

Management and Oversight of OEP

  1. The Committee is typically composed of territory and program managers (or designated senior analysts). Committee membership includes the Director and at least one representative from:

    • Each technical and geographic practice area

    • Assistant Deputy Commissioner Compliance Integration

    • LB&I division (or practice area) counsel

    • Economists

    • Engineers

    • Transfer pricing specialist

  2. The Committee is responsible for allocating, monitoring and controlling funding of LB&I outside expert requisitions at the examination and Appeals levels. The Committee has authority to review and recommend approval or disapproval of any request for outside expert services funding. An analyst (OEP analyst) assigned to LB&I Program and Business Solutions acts as the Committee liaison.

  3. The Committee meets at least quarterly to review funding requests.

  4. Documentation of the representative’s executive approval is required when a representative requests an ad hoc Committee review.

Strategically Managed Issues

  1. The use of outside expert assistance is highly encouraged and is often critical on strategically managed issues and projects. In addition to providing expert reports or consulting on case specific examination issues, outside experts may also be used to provide insight to and assist the IRS in understanding issues that apply to more than one case or practice area (e.g., consulting with the IRS on how to approach issues within their area of expertise that arise repeatedly in certain types of transactions or for similarly situated taxpayers).

Planning For Outside Expert Assistance

  1. Examination team management (case managers) should discuss potential outside expert needs with team members and team management, who have or should have a primary responsibility for examination of the issue. The issue team manager is typically the team manager assigned to the examination who has day-to-day substantive responsibility for the issue under examination.

  2. Requests for outside expert services are encouraged regardless of any currently reported budget constraints.

  3. Examination teams should strive to submit requests early enough in the year to facilitate forwarding of the requisition package to the Office of the Chief Procurement Officer (Procurement) before the end of the third quarter of the fiscal year.

  4. All key internal stakeholders directly associated with examination of the subject issue should be involved in the outside expert process throughout the life of the project, e.g., decision to request funding through closeout of the contract or case. The issue team manager must provide preliminary notifications to the following individuals after the examination team identifies the potential need for outside expert assistance:

    • Practice area territory manager primarily responsible for the issue

    • Specialist team and territory managers with primary examination responsibility for the issue (e.g. the Transfer Pricing Practice (TPP) territory manager would be a key stakeholder for an IRC 482 or IRC 367 transfer pricing issue.)

    • The Practice Area's Committee representative for the practice area with primary examination responsibility for the issue

    • The Economist Committee representative if an economist issue

    • The Engineer Committee representative if an engineer issue

    • The Transfer Pricing specialist Committee representative if a transfer pricing issue

  5. Executives at the DFO and Director level should be made aware of funding requests and support the issue under development.

Preliminary Concurrences

  1. Specialist concurrences are required to facilitate strategic management of resources and to maximize the benefits from the OEP within budgetary constraints.

  2. The economist team manager must obtain preliminary concurrence to request outside expert services from their direct territory manager for economist issues.

  3. The engineer team manager must obtain preliminary concurrence to request outside expert services from their direct engineer territory manager for engineer issues.

  4. The TPP team manager must obtain preliminary concurrence to request outside expert services from their direct TPP territory manager for IRC 482 or IRC 367 transfer pricing issues.

  5. Requests for actuarial services must be approved by the Pass-Through Entities practice area prior to formal submission for funding to hire outside actuary experts.

  6. The issue team manager is responsible for providing documentation of all required concurrences when submitting a request for outside expert funding.

Contracting Officer’s Representative (COR)

  1. The case manager or issue team manager should request the assignment of a COR to the project as soon as key issue stakeholders agree on the need for outside expert assistance.

  2. The engineer team manager or economist team manager responsible for providing engineer or economist support on the issue should be the first point of contact when seeking COR assistance. The OEP Analyst can provide assistance with COR assignments, if necessary.

  3. The COR is responsible for all liaison with the outside expert. It is the responsibility of all examination team members to coordinate with the COR prior to any communications with the outside expert. Adhering to this requirement will encourage team member and contractor understanding of the formal requirements and limitations of the contract and minimize the risk of unauthorized procurements.

  4. CORs should be the first point-of-contact for guidance and assistance with all requirements and processes associated with the outside expert project. CORs can provide process guidance, worksheets and templates for all required documentation associated with the requisition for outside expert services.

  5. COR and designated POC ("Point of Contact" below) time related to the procurement of and management of a case-specific outside expert contract is case-related direct examination time. Time requirements associated with the processing and management of an outside expert requisition will vary from case to case and should be documented in the COR’s and POC’s case activity record, Form 9984, Examining Officer's Activity Record and charged to the issue in IMS and on the Form 4502 while the examination is open.

  6. Once the contract is awarded, the COR will work with the POC to verify the contractor’s invoice charges. The POC will approve the charges on the invoice and timely notify the COR according to FAR 32.9 and Procurement Policy and Procedures (P&P) 46.5. After receiving the approval from POC, the COR will promptly process contractor payments in the Service’s Procurement for Public Sector (PPS) and maintain documentation in their COR administrative file.

  7. Contractors are prohibited from receiving materials containing any SBU or PII information until they have completed the background investigation process and received at least interim staff-like access approval. The COR should monitor the background investigation process and verify that the contractor has been granted at least interim staff-like access prior to receipt of any SBU or PII information.

Designated Point of Contact

  1. The team manager who has primary responsibility for providing specialist support on the examination of the subject issue should designate a POC if the COR does not have primary responsibility for providing specialist examination support on the subject case/issue.

  2. The POC serves as the primary resource person to guide and assist the team and COR with preparing the funding request and procurement requisition package. The POC also provides direct assistance with the management and control of the outside expert services.

  3. The POC will be responsible for providing oversight to the examination team on all aspects of the OEP issue. This includes, but is not limited to, providing assistance with the following:

    • Identification of the scope of work

    • Identification of qualified experts

    • Preparation of the statement of work

    • Providing oversight of the outside expert’s in-process work

    • Participation in meetings with the outside expert and taxpayer

    • Reviewing the outside expert’s deliverables, including but not limited to draft and final report(s)

    • Reviewing and approving contract invoices and timely notifying COR according to the requirements of FAR 32.9 and Procurement P&P 46.5

  4. The case and issue team managers are responsible for ensuring COR and POC involvement in all aspects of preparing the funding request package and the procurement requisition package.

Area Counsel and Technical Specialist Involvement

  1. Area counsel is available to assist in determining whether an outside expert is needed and can provide assistance with identifying an appropriate expert and with related due diligence. Area counsel and technical specialist involvement are required when the estimated cost of an outside expert is $75,000 or more. The issue team manager is responsible for obtaining written recommendations from area counsel and the technical specialist. Counsel’s recommendations should include the following:

    • Opinion and explanation as to whether counsel supports the legal foundation for the subject issue

    • Opinion and explanation as to whether counsel perceives a significant potential for litigation

    • Indication as to whether the subject issue is docketed for trial (with any taxpayer)

    • Litigation history for the subject issue

  2. Counsel should clearly indicate and explain their concurrence with the need to hire the outside expert at the examination level. A similar written recommendation from the technical specialist is required.

  3. Counsel assistance and involvement with identifying potential outside experts and preparing the statement of work is highly recommended. The issue team manager should seek counsel concurrence with the selection of recommended expert(s) and statement of work.

Market Surveys

  1. At least one new, not previously used, potentially qualified outside expert should be contacted during the market survey process. Documentation of this contact is required. A written explanation is required if this cannot be accomplished.

  2. Due diligence is required during market research to identify potential outside experts. Examination teams should seek the assistance of area counsel when performing market research. At a minimum, prior to Procurement sending out formal solicitations for outside expert services, the examination team should perform the following actions related to all solicited outside experts:

    • Check and verify all items on the expert’s resume, including references.

    • Search the Internet for all material on the expert.

    • Research all cases in which the expert testified to determine if courts looked favorably on the expert.

    • Interview the expert – In addition to confirming substantive expertise in area, be sure to inquire about potential conflicts of interest and if there is anything in the expert’s past that could be a problem.

    • Review any "Past Performance" reports maintained by Procurement on the expert.

    • Secure a signed non-disclosure agreement from the contractor.

Requesting Outside Expert Assistance

  1. The examination team should coordinate with the COR for current guidance and worksheets associated with a request for outside expert services.

  2. Requests for funding that require Committee review should be submitted to the OEP Analyst no later than fourteen (14) calendar days prior to a scheduled meeting of the Committee.

  3. All requests and associated documentation for funding for outside expert services on LB&I examinations must be submitted by secure e-mail.

  4. LB&I has two (2) worksheets that should be used to request outside expert program funds. The "Original Funding Worksheet" is used to request funds to initiate a new contract. The "Additional Funding Worksheet" is used to request funds for an existing contract. The two worksheets are referenced below as "funding request worksheets" . The worksheets can be accessed on the OEP webpage at http://lmsb.irs.gov/pbs/pm/OEP/OEP.asp.

  5. Generally, funding request packages for submission to the outside expert budget committee should include the following:

    • Completed "Original Funding Worksheet"

    • Required management concurrences

    • Requirements portion of the statement of work

    • Counsel recommendation memorandum

    • Technical specialist recommendation

    • Market survey documentation

    • Independent government cost estimate

    • Justification for Other Than Full and Open Competition (JOFOC), if sole source

    • Signed non-disclosure agreement from recommended potential expert

  6. Contracts should be broken down into logical phases to better control the contracted services. The phases must be clearly identified in the contract’s statement of work and clearly identified as corresponding "line items" in PPS. Outside expert requisitions that do not clearly specify logical phases and corresponding PPS line items may be rejected.

  7. Requests should include the estimated cost for all phases of anticipated outside expert services excluding trial preparation and assistance (i.e., estimated total cost of assistance at the examination level and for Appeals assistance).

  8. Committee review is required for all funding requests when the total/cumulative cost for all expert services related to the examination at the examination and Appeals levels equals $75,000 or more. The Committee has delegated approval authority to the following individuals where the total cost is less than $75,000:

    • Engineer territory managers

    • Economist or Transfer Pricing territory managers

    • Financial Products territory managers

    • OEP analyst

  9. The Director and Committee retain ultimate authority over any recommended approvals for funding.

  10. All requests for LB&I outside expert funds, regardless of cost, require preparation of a funding worksheet which can be accessed on the OEP webpage at http://lmsb.irs.gov/pbs/pm/OEP/OEP.asp or provided by the COR or OEP analyst.

  11. The issue team manager is responsible for obtaining and documenting all required management and executive level concurrences.

Requests for Additional Funding

  1. Generally, requests for additional funding on existing contracts should include the following:

    • Completed "Additional Funding Worksheet"

    • Required management concurrences

    • Summary and status of outside expert services already received

    • Explanation for and justification of why additional funding is required

    • Independent government cost estimate and related documentation associated with the request for additional funding

    • Revised copy of the statement of work, if applicable

    • Complete, fully documented funding request package, including an "Original Funding Worksheet" if not previously provided, when the total cost is $75,000 or more

  2. Requests for additional funding must be submitted to the Committee for review in these situations:

    • When the additional funding request is $75,000 or more

    • When the new total cost for the contract (including the pending funding request) is $75,000 or more and has not previously been approved by the Committee

Required Approvals for Funding Requests

  1. All funding request approvals must be documented in writing on the funding request worksheets.

  2. For all requests, the case manager, issue team manager and issue territory managers are required to sign the funding request worksheets.

  3. Additional approvers of the funding request may be required depending upon the total cost of the funding request, see the OEP webpage at http://lmsb.irs.gov/pbs/pm/OEP/OEP.asp for current funding request worksheets, which contain a complete list of required approvers.

Timely Processing – Funded Requisition Packages

  1. The issue team manager is responsible for ensuring the timely submission of complete, fully documented outside expert requisition packages to Procurement. Complete, fully documented requisition packages should be forwarded to Procurement within thirty (30) calendar days after notification of the Committee’s approval. If timely submission does not occur, the Committee may revoke its approval for funding.

  2. The COR coordinates with Procurement to provide guidance associated with the preparation and submission of a fully documented procurement requisition package.

  3. Requisitions submitted to Procurement are discouraged during the fourth quarter of the fiscal year. Due to Procurement’s limited resources and the processing times required to complete the award of a contract, requisitions forwarded to Procurement in the fourth quarter are at risk for non-award. The COR should coordinate with Procurement to ensure the award of the contract prior to the end of the fiscal year.

Contract Management and Control

  1. The issue team manager should engage all responsible team members including specialist team members and all associated team managers in the management and control of the contracted services to ensure that quality services are provided at a reasonable cost.

Post-award Conferences

  1. The issue team manager is responsible for ensuring that the COR conducts a "Post-award Conference" with the examination team and outside expert to explain and clarify the terms and limits of the contract and to explain roles and responsibilities and associated limits. The post-award conference must be held prior to authorizing any outside expert services under the contract. Teleconferences may be used to hold the post-award conference.

Contract Closing Reports

  1. The issue team manager must provide the OEP analyst with a contract closing report when the examination closes. The COR can provide detailed instructions and assistance. The closing report can be accessed on the OEP webpage at http://lmsb.irs.gov/pbs/pm/OEP/OEP.asp.

Denials of Funding Requests

  1. The OEP Analyst will notify the COR and case manager if an outside expert funding request is denied by the Budget Committee. The OEP Analyst will work with the case manager, issue manager and COR to review reason(s) for denial and help determine alternative solutions to address the audit issue going further. After considering and addressing the recommendations of the Budget Committee, the issue stakeholders, including the case manager, issue manager and COR, can resubmit the funding request for reconsideration during a subsequent meeting.

LB&I Outside Expert Budget Committee Charter

1. Objective and Background:

The Outside Expert Budget Committee (Committee) provides outside expert funding to LB&I examination teams to assist in the development of significant issues and to supplement the work of in-house personnel. The Committee aligns expert funding with LB&I strategic initiatives and distributes funds in a fair and objective manner based on the merits of requests.

2. Purpose:

The Committee provides management-level oversight and guidance for the Outside Expert Program (OEP) and serves in a liaison capacity with OEP stakeholders. The Committee allocates, monitors and controls funding of LB&I outside expert requisitions. The Committee reviews and offers recommendations for all outside expert funding requests regardless of total cost, including delegated authority approvals of lower cost requests.

3. Committee Membership and Roles:

The director, LB&I Program and Business Solutions (Director) provides executive oversight to the Committee and the OEP, and has final authority over all decisions related to the program.

A Program and Business Solution (PBS) analyst (Committee Analyst) organizes meetings and serves as Committee liaison.

The Committee is consists of 15 voting members. This includes the Director and one representative from each of the following LB&I organizations:

  • Technical and geographic practice areas

  • Assistant Deputy Commissioner for Compliance Integration

  • Division (or practice area) counsel

  • Economists

  • Engineers

The Committee Analyst is a non-voting member of the Committee.

Voting members are typically territory or program managers (or designated senior analysts); however the Committee should also include at least one, but not more than two, practice area team managers. Committee members serve as OEP liaisons for their respective organizations.

The Director and the Committee Analyst are permanent members of the Committee. All other members serve two-year terms, the duration of which may be extended up to one additional year (three years total).

4. Coordination:

The Committee meets at least quarterly to consider new funding requests, monitor available funds and address any other relevant matters. Committee meetings are generally held via teleconference; however an annual on-site meeting may be called, if deemed necessary and appropriate by the Director. Because work of the OEP is case-related, Committee meetings are considered mission-critical. In the event travel is necessary to conduct OEP business, associated expenses are borne by the members' own organizations.

The Director may, at the request of a Committee member, call an ad-hoc meeting to consider an emergency funding request. Ad-hoc meetings should occur infrequently and will be held via teleconference.

Sub-teams may be formed to address specific needs as they arise. Each sub-team reports its findings to the Committee.

The Committee conducts official business only during regular or ad-hoc meetings, and only in the presence of a quorum. A quorum is achieved when eight Committee members are present.

A Committee member unable to attend a given meeting should identify an appropriate back-up who can attend in their place. (The back-up should be from the same organization and of the same management level as the member.) The back-up is entitled to cast votes on matters before the Committee on behalf of the member. In the event a back-up cannot be located, the absent member may, via emailed instructions, grant proxy to the Committee Analyst to vote on their behalf.

Granting of a proxy to the Committee Analyst does not contribute to the establishment of a quorum. A back-up attending committee meetings will be counted towards establishing a quorum.

5. Funding Requests:

Outside Expert funding requests are submitted according to procedures established by the Committee. Requests are compiled by the Committee Analyst and distributed to Committee members in advance of a meeting. Funding requests should be received by the Committee Analyst at least 14 days prior to a scheduled meeting.

Urgent funding requests should be submitted through the Committee Analyst to the Committee or Director for ad-hoc review. Examination teams must provide documentation of appropriate Practice Area DFO (or higher level) permission to request an ad-hoc review.

6. Funding Determinations:

The Committee reviews all properly prepared and complete funding requests at least once per quarter. The requests are discussed and funding determined based on criteria established by the Committee.

A quorum of the Committee must be present to vote on a funding request. A funding request is considered approved when a majority of voting Committee members casts an affirmative vote. Proxy votes are included in the vote count. Each voting Committee member gets one vote.

The Committee may request additional information before reaching a final determination.

The requestor will receive notification and comments within three workdays of the Committee’s determination on any funding request that requires submission for Committee review.

7. Delegations of Authority:

The Director may delegate all or limited areas of authority to the PBS Program Manager.

With the exception of operation under budgets constrained by Continuing Resolution, the Committee may delegate funding approval authority in two scenarios:

  • When previous funding requests have been approved by the Committee or Director and the current additional funding request is less than $75.000

  • When the total amount (including outside expert services at the examination and Appeals levels) of the pending funding request is less than $75,000

In these two scenarios, the Committee delegates funding approval to individuals occupying the following positions:

  • Economist or TPP territory managers

  • Engineer territory managers

  • Financial Products territory managers

  • Committee analyst

When operating under a more limited budget constrained by Continuing Resolution (CR), the Committee may delegate funding approval authority as follows:

  • When previous funding requests have been approved by the Committee or Director and the current additional funding request is less than 10% of the OEP budget under the CR

  • When the total amount (including outside expert services at the examination and Appeals levels) of the pending funding request is less than 10% of the OEP budget under the CR

Individuals acting under delegated authority must provide the Committee Analyst with adequate documentation supporting the request. At minimum, this includes the LB&I outside expert funding request worksheet or additional funding request worksheet.

Note:

The Director and Committee retain ultimate authority over any recommended approvals. Director or Committee review and approval is required if the cumulative cost for expert services under an outside expert contract will be $75,000 or more for services provided through the examination and Appeals level.)

8. Amendment to Charter

The Charter is reviewed annually. Modifications require approval by at least two-thirds (2/3) of the members including the Director.