Isotopes for Medicine and the Life Sciences (1995) / Chapter Skim
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5 PUBLIC-PRIVATE PARTNERSHIP MODELS FOR NBTF
5 PUBLIC-PRIVATE PARTNERSHIP MODELS FOR NBTF
Pages 81-95
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From page 81... ...
The passage of the Energy and Water Development Appropriations Act of 1990 (Public Law 101-101) required the change of that isotope production and distribution be done on a full cost recovery basis, which contributed to the decline of isotope sales and profitability.
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From page 82... ...
THE DOE ISOTOPE PRODUCTION AND DISTRIBUTION PROGRAM The production, supply, and sale of isotopes have been longstanding activities of DOE and its predecessors, the Atomic Energy Commission and the Energy Research and Development Administration. Even though the production of and the research conducted with a wide variety of isotopes were strictly adjuncts of nuclear physics research, defense, and nuclear power development programs, these isotope programs are among the best examples of technology transfer from government research to commercial application.
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From page 83... ...
This statutory requirement for self-sufficiency was apparently based in large measure on the prior year's $15 million in isotope sales, but it was not until after passage of the act that DOE was required to report on the details of such matters as the condition of production facilities and plans for their replacement, expected requirements in the areas of environmental and waste treatment expenses, and detailed financial plans for achieving full cost recovery of isotope production and distribution. Despite optimistic projections, the IPDP's operating expenditures have consistently exceeded sales revenues (Arthur Andersen & Co., 1993; KPMG Peat Marwick, 1992~.
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From page 84... ...
, which established the revolving fund and required full cost recovery by IPDP, does not explicitly change the mission of IPDP and makes no distinction between the production and the distribution of isotopes to the research community and supplying high-volume, commercial-use isotopes to the private sector. To date IPDP has tried to remain faithful to the research mission and culture in which it arose, despite the clear implication of Public Law 101-101 that the production of high-cost, noncommercial isotopes would have to be curtailed or eliminated and facilities operating at less than full capacity would have to be dropped from the program.
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From page 85... ...
In fact, it was precisely this problem of the lack of control of costs and facility use that underlay the proposal by the Society for Nuclear Medicine for a stand-alone, DOE-supported accelerator facility dedicated to the production and distribution of medical isotopes, NBTF. This committee is in agreement with the underlying assumption of that proposal that the existing DOE national laboratory system cannot be, and perhaps should not be, turned on its head to support a successful product of its research, that is, nuclear medicine.
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From page 86... ...
cyclotron and a TR-30 (30-MeV) cyclotron, on the site in the Chemistry Annex, a structure built by Nordion and shared with TRIUMF staff, which also receives CP-42 beam time as part of the technical agreement.
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From page 87... ...
. One of the functions of the DOE national laboratories is the operation of large, generally one-of-a-kind user facilities such as those employed for research in high-energy and nuclear physics and in condensed-matter and materials research.
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From page 88... ...
Somewhat more complicated and closer to the Canadian model could be an evolving network of partners associated with the Continuous Electron Beam Accelerator Facility (CEBAF) , which is nearing completion in Newport News, Va.
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From page 89... ...
IAB also noted the potential of CEBAF's superconducting radiofrequency cavities as a driver for a high-power, free-electron, monochromatic, tunable laser useful to industry in applications ranging from making antistatic coatings for carpets and bonding plastic auto parts to developing synthetic skin and blood vessels. As a consequence, a Laser Processing Consortium has formed.
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From page 90... ...
These emphases reflect an attempt to change the technology transfer direction within DOE laboratories from the classical technology push to a perhaps more modern technology pull. DOE is struggling with the ways in which the research and development programs of the laboratories might be positioned, through contacts with the private sector, to pull a desired technology from DOE work into a need of industry.
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From page 91... ...
An example of such a CRADA is one between Argonne National Laboratory and AccSys Technology, Inc., of Pleasanton, Calif., for accelerator development. A goal of this particular program is to develop linear accelerator structures on the basis of superconducting radiofrequency techniques that would lead to more cost-effective, compact machines that produce isotopes for PET.
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From page 92... ...
This dichotomy leads the committee to the conclusion that a public-private partnership is essential for the operation of NBTF. As discussed in previous sections, it is not clear that current DOE regulations, the definition of its missions, and the interpretation of public laws actually allow for the establishment of a public-private partnership for education, research, and the production and sale of materials.
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From page 93... ...
To make such a partnership function on a mutually profitable basis, there would need to be a strong management board that oversees the complete operation, approves the distribution of beam time, understands the financial aspects of the commercial activities, monitors the return of royalties from the private-sector partner to the not-for-profit partner, and sets the broad policies for the operation of the facility. Although such a complex partnership would initially be difficult to operate, the committee believes that the model is not only necessary for the goals of NBTF but also important as a model for other federal facilities in different fields of endeavor.
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From page 94... ...
2. The revolving fund provision of The Energy and Water Development Appropriations Act of 1990 (Public Law 101-101)
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From page 95... ...
* The Energy and Water Development Appropriations Act for 1995 (passed after the writing of this chapter)
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