As we covered in our previous blog post, the Department of Energy (“DOE”) has launched the “Genesis Mission” to apply AI technology to a wide variety of scientific and technological challenges.    

Last week, DOE announced it had selected 278 Genesis Mission projects for potential awards.  The selected projects span nuclear energy, quantum computing, advanced manufacturing, and materials science, among other areas.  According to DOE, the largest selection is a three-year, $60 million nuclear energy project involving 32 partner entities, including 4 national labs and more than 20 industry partners.

Of the selected projects, 87 are led by DOE and National Nuclear Security Administration (“NNSA”) national laboratories, 168 by universities, 19 by companies, and 4 by non-profit organizations.  Participating institutions include 16 DOE and NNSA national laboratories, 142 universities, 157 companies, 13 non-profit organizations, and 14 other institutions.  The companies leading projects include both established government contractors and businesses that appear to be newer to federal funding.

Any for-profit entity that is selected for a potential award (or a potential subaward under a project spearheaded by a national lab, university, or non-profit) will be required to negotiate the terms of a potential “Other Transaction” (“OT”) agreement.  (The most up-to-date template for the agreement with awardees can be found here.)

An OT agreement permits DOE to negotiate terms that may not be achievable under a FAR-based procurement contract or a federal grant or cooperative agreement subject to 2 C.F.R. Part 200.  This flexibility allows DOE to assert, among other things, significant rights over any new intellectual property developed during performance of the project, such as broad government use rights and domestic manufacturing requirements.  The transformative nature of AI technology that may be leveraged during performance can heighten these potential stakes.  Potential awardees are advised to carefully assess the costs and benefits of agreeing to DOE’s proposed terms. 

Tags: Artificial Intelligence (AI), Department of Energy, research and development
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Photo of Michael Wagner Michael Wagner

Mike Wagner represents companies and individuals in complex compliance and enforcement matters arising in the public procurement context. Combining deep regulatory expertise and extensive investigations experience, Mike helps government contractors navigate detailed procurement rules and achieve the efficient resolution of government investigations and…

Mike Wagner represents companies and individuals in complex compliance and enforcement matters arising in the public procurement context. Combining deep regulatory expertise and extensive investigations experience, Mike helps government contractors navigate detailed procurement rules and achieve the efficient resolution of government investigations and enforcement actions.

Mike regularly represents contractors in federal and state compliance and enforcement matters relating to a range of procurement laws and regulations. He has particular experience handling investigations and litigation brought under the civil False Claims Act, and he routinely counsels government contractors on mandatory and voluntary disclosure considerations under the FAR, DFARS, and related regulatory regimes. He also represents contractors in high-stakes suspension and debarment matters at the federal and state levels, and he has served as Co-Chair of the ABA Suspension & Debarment Committee and is principal editor of the American Bar Association’s Practitioner’s Guide to Suspension & Debarment (4th ed.) (2018).

Mike also has extensive experience representing companies pursuing and negotiating grants, cooperative agreements, and Other Transaction Authority agreements (OTAs). In this regard, he has particular familiarity with the semiconductor and clean energy industries, and he has devoted substantial time in recent years to advising clients on strategic considerations for pursuing opportunities under the CHIPS Act, Inflation Reduction Act, and Bipartisan Infrastructure Law.

In his counseling practice, Mike regularly advises government contractors and suppliers on best practices for managing the rapidly-evolving array of cybersecurity and supply chain security rules and requirements. In particular, he helps companies assess and navigate domestic preference and country-of-origin requirements under the Buy American Act (BAA), Trade Agreements Act (TAA), Berry Amendment, and DOD Specialty Metals regulation. He also assists clients in managing product and information security considerations related to overseas manufacture and development of Information and Communication Technologies & Services (ICTS).

Mike serves on Covington’s Hiring Committee and is Co-Chair of the firm’s Summer Associate Program. He is a frequent writer and speaker on issues relating to procurement fraud and contractor responsibility, and he has served as an adjunct professor at the George Washington University Law School.

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Photo of Peter Terenzio Peter Terenzio

Peter Terenzio advises clients regarding the regulatory requirements that govern federal contractors and grantees. He focuses on helping clients navigate the Cost Accounting Standards (CAS) and the cost principles in FAR Part 31 and 2 CFR Part 200. He also routinely advises on…

Peter Terenzio advises clients regarding the regulatory requirements that govern federal contractors and grantees. He focuses on helping clients navigate the Cost Accounting Standards (CAS) and the cost principles in FAR Part 31 and 2 CFR Part 200. He also routinely advises on Other Transaction Authority (OTA) research, prototype, and production agreements.

Peter works on accounting, cost, and pricing matters, including providing day-to-day compliance advice; assisting with responses to audits and investigations and findings of potential noncompliance; and performing internal investigations of alleged violations. He also advises on other regulatory regimes, including the complicated prevailing wage rules imposed by the Davis Bacon Act (DBA) and Service Contact Act (SCA). He has particular experience with prototype OTAs issued in cutting edge fields, including quantum computing and biotechnology.

Peter also represents contractors in disputes arising under contracts and grants. He knows how to work closely with the client’s subject matter experts to prepare and submit detailed requests for equitable adjustment (REAs) to secure price or schedule relief. When contract disputes cannot be resolved amicably, he has helped clients in litigation before federal courts and the Boards of Contract Appeals.

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Photo of Eunsun Cho Eunsun Cho

Eunsun Cho is an associate in the Government Contracts Practice Group. She assists clients on a range of regulatory and compliance issues.

Eunsun also maintains an active pro bono practice.

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