97-11728. Board of Contract Appeals; Contract Appeals  

  • [Federal Register Volume 62, Number 88 (Wednesday, May 7, 1997)]
    [Rules and Regulations]
    [Pages 24804-24808]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-11728]
    
    
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    DEPARTMENT OF ENERGY
    
    10 CFR Parts 703 and 1023
    
    RIN 1901-AA30
    
    
    Board of Contract Appeals; Contract Appeals
    
    AGENCY: Board of Contract Appeals, Department of Energy.
    
    ACTION: Final rule.
    
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    SUMMARY: The Department of Energy amends its regulations concerning 
    proceedings and functions of the Board of Contract Appeals. This action 
    is necessary to update the rules and to reorganize and supplement the 
    existing rules to provide the public with a better understanding of the 
    Board and its functions. This rule adds an overview of the Board's 
    organization, authorities and various functions, enunciates 
    longstanding policies favoring the use of Alternative Dispute 
    Resolution (ADR), and confirms the Board's authority to engage in ADR 
    and provide an array of ADR neutral services, modifies the Rules of 
    Practice for Contract Disputes Act (CDA) appeals to implement changes 
    made to the CDA by the Federal Acquisition Streamlining Act (FASA), and 
    removes unnecessary and obsolete rules related to the Board's non-CDA 
    appeals and Contract Adjustment Board functions.
    
    DATES: This rule is effective June 6, 1997.
    
        Applicability date: In accordance with Sec. 1023.102, rule 1(a) and 
    (b) of Sec. 1023.120 shall apply to appeals filed on or after October 
    1, 1995.
    
    FOR FURTHER INFORMATION CONTACT: E. Barclay Van Doren, Chair, 
    Department of Energy, Board of Contract Appeals, (202) 426-9316.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
        A. Discussion
    II. Procedural Requirements
        A. Review under Executive Order 12866
        B. Review under Executive Order 12988
        C. Review under the Regulatory Flexibility Act
        D. Review under the Paperwork Reduction Act
        E. Review under the National Environmental Policy Act
        F. Review under Executive Order 12612
        G. Review Under Small Business Regulatory Enforcement Fairness 
    Act of 1996
        H. Review Under the Unfunded Mandates Reform Act of 1995
    
    I. Background
    
    A. Discussion
    
        On October 30, 1996, the Department published a proposed rule in 
    the Federal Register (61 FR 55932) to update and reorganize the various 
    rules previously issued by the Energy Board of Contract Appeals. The 
    Department now adopts the proposed rule as final.
        This Rulemaking has several purposes. First, the Overview, 
    Secs. 1023.1-1023.9, set out a statement of the organization, 
    functions, and authorities of the Board of Contract Appeals (Board or 
    EBCA) of the Department of Energy (DOE) and principles applicable to 
    all the Board's functions. The Board has functions other than the 
    resolution of disputes brought under the Contract Disputes Act (CDA), 
    yet the previous rules did not list and describe these functions and 
    their associated authorities in any single place. This proved confusing 
    to some who were unfamiliar with the Board. The revised rules, in one 
    place, describe and cross-reference all of the standing functions and 
    rules of the Board. This change should help those unfamiliar with the 
    Board to understand its several functions and the limits of its 
    authority, and to assist potential appellants to determine whether the 
    Board is the proper forum for the resolution of a particular dispute. 
    Moreover, the rule provides, for informational purposes, the Board's 
    delegated general authorities, which are set forth in a delegation 
    order from the Secretary of Energy.
        Second, this Rulemaking enunciates in Sec. 1023.8, the Board's and 
    DOE's policy favoring the use of ADR in the resolution of contract and 
    other disputes. The previous rules did not recognize ADR nor the 
    authority of the Board and its members to employ and participate in ADR 
    procedures. The Board has a longstanding policy to encourage the 
    consensual resolution of disputes. These revised rules contain an 
    explicit statement of the Board's and DOE's policy regarding ADR. In 
    addition to the statement of policy contained in Section 1023.8, 
    express Board ADR authorities are set forth in Secs. 1023.1(d), 
    1023.3(b), 1023.4, 1023.5, and 1023.6. Included are authorities 
    permitting the Chair to exchange neutrals with other Boards of Contract 
    Appeals. Further, the Board is authorized to provide neutral services 
    for certain contract disputes below the prime contract level in 
    instances specified in Section 1023(d).
        Third, the Federal Acquisition Streamlining Act (FASA) modified the 
    CDA with respect to matters involving claim certification and 
    availability of certain appeal procedures. This Rulemaking updates the 
    Board's rules of practice (Rules 1, 6, 13, and 14) to conform to these 
    changes. The Streamlining Act increased the threshold for CDA claim 
    certification to $100,000, from $50,000. The Act also increased the 
    amounts under which a claim is eligible for either accelerated 
    procedures or small claims procedures. Claims under $100,000 
    (previously $50,000) will be eligible for accelerated procedures and 
    claims under $50,000 (previously $10,000) will be, at the contractor's 
    election, resolved under the small claims procedures.
        Fourth, this Rulemaking removes the separate rules of practice (10 
    CFR part 703) for contract and subcontract appeals which are not 
    governed by the CDA (non-CDA appeals) and the rules of the Contract 
    Adjustment Board (10 CFR part 1023, subpart B). No pre-CDA appeals have 
    been filed with the Board for more than eight years and separate rules 
    are no longer necessary. The rules of practice for CDA appeals (10 CFR 
    part 1023, subpart A) will be applicable to both CDA appeals and non-
    CDA appeals from contracting officer decisions and to any subcontractor 
    disputes over which the Board has jurisdiction. In non-CDA appeals, the 
    Board may make procedural modifications determined by the Board to be 
    appropriate, such as disregarding rule provisions pertaining
    
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    to claim certification. Regulatory authority for appeals to the 
    Contract Adjustment Board no longer exists and the rules of the 
    Contract Adjustment Board are removed hereby.
        Finally, the Rulemaking renumbers the rules of practice for 
    contract appeals to the Board to allow for the inclusion of the 
    Statement of Organization, Functions, and Authorities and minor 
    conforming changes would be made to the Rules of Practice.
        No comments were received following publication of the proposed 
    rule. However, Sec. 1023.2(a) has been revised to reflect that the 
    Board has moved and has new addresses and telephone numbers. No other 
    changes have been made.
    
    II. Procedural Requirements
    
    A. Review Under Executive Order 12866
    
        This regulatory action has been determined not to be a 
    ``significant regulatory action'' under Executive Order 12866, 
    ``Regulatory Planning and Review'' (58 FR 51735, October 4, 1993). 
    Accordingly, this action was not subject to review under the Executive 
    Order by the Office of Information and Regulatory Affairs.
    
    B. Review Under Executive Order 12988
    
        With respect to the review of existing regulations and the 
    promulgation of new regulations, section 3(a) of Executive Order 12988, 
    ``Civil Justice Reform,'' 61 FR 4729 (February 7, 1996), imposes on 
    Executive agencies the general duty to adhere to the following 
    requirements: (1) Eliminate drafting errors and ambiguity; (2) write 
    regulations to minimize litigation; and (3) provide a clear legal 
    standard for affected conduct rather than a general standard and 
    promote simplification and burden reduction. With regard to the review 
    required by section 3(a), section 3(b) of Executive Order 12988 
    specifically requires that Executive agencies make every reasonable 
    effort to ensure that the regulation: (1) Clearly specifies the 
    preemptive effect, if any; (2) clearly specifies any effect on existing 
    Federal law or regulation; (3) provides a clear legal standard for 
    affected conduct while promoting simplification and burden reduction; 
    (4) specifies the retroactive effect, if any; (5) adequately defines 
    key terms; and (6) addresses other important issues affecting clarity 
    and general draftsmanship under any guidelines issued by the Attorney 
    General. Section 3(c) of Executive Order 12988 requires Executive 
    agencies to review regulations in light of applicable standards in 
    sections 3(a) and 3(b) to determine whether they are met or it is 
    unreasonable to meet one or more of them. DOE has completed the 
    required review and determined that, to the extent permitted by law, 
    the rule meets the relevant standards of Executive Order 12988.
    
    C. Review Under the Regulatory Flexibility Act
    
        The rules were reviewed under the Regulatory Flexibility Act of 
    1980, 5 U.S.C. 601, et seq., which requires preparation of an initial 
    regulatory flexibility analysis for any proposed rule which is likely 
    to have a significant economic impact on a substantial number of small 
    entities. In the notice of proposed rulemaking, DOE certified that the 
    rules will not have a significant economic impact on a substantial 
    number of small entities; therefore, no regulatory flexibility analysis 
    has been prepared.
    
    D. Review Under the Paperwork Reduction Act
    
        The DOE has determined that the rules are exempt from the 
    requirements of the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et 
    seq.) by virtue of 44 U.S.C. 3518(c)(1)(B), which provides that the 
    Paperwork Reduction Act does not apply to the collection of information 
    during the conduct of an administrative action involving an agency 
    against specific individuals or entities.
    
    E. Review Under the National Environmental Policy Act
    
        The DOE has concluded that the promulgation of these rules does not 
    represent a major Federal action having significant impact on the human 
    environment under the National Environmental Policy Act (NEPA) of 1969 
    (42 U.S.C. 4321, et seq.), or the Council on Environmental Quality 
    Regulations (40 CFR parts 1500-08), and the DOE guidelines (10 CFR part 
    1021), and, therefore, does not require an environmental impact 
    statement or an environment assessment pursuant to NEPA.
    
    F. Review Under Executive Order 12612
    
        Executive Order 12612, 52 FR 41685 (October 30, 1987), requires 
    that regulations, rules, legislation, and any other policy actions be 
    reviewed for any substantial direct effects on States, on the 
    relationship between the national government and the States, and in the 
    distribution of power and responsibilities among various levels of 
    government. If there are sufficient substantial direct effects, then 
    the Executive Order requires preparation of a federalism assessment to 
    be used in all decisions involved in promulgating and implementing a 
    policy action.
        This rule revises certain policy and procedural requirements. 
    However, the DOE has determined that none of the revisions will have a 
    substantial direct effect on the institutional interests or traditional 
    functions of States.
    
    G. Review Under Small Business Regulatory Enforcement Fairness Act of 
    1996
    
        As required by 5 U.S.C. 801, DOE will report to Congress 
    promulgation of the rule prior to its effective date. 5 U.S.C. 801. The 
    report will state that it has been determined that the rule is not a 
    ``major rule'' as defined by 5 U.S.C. 804(3).
    
    H. Review Under the Unfunded Mandates Reform Act of 1995
    
        The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4) generally 
    requires a Federal agency to perform a detailed assessment of costs and 
    benefits of any rule imposing a Federal Mandate with costs to State, 
    local or tribal governments, or to the private sector, of $100 million 
    or more. The impact of this rulemaking impact is less than $100 
    million.
    
    List of Subjects in 10 CFR Parts 703 and 1023
    
        Administrative practice and procedure, Government contracts, 
    Government procurement.
    
        Issued in Washington, DC on April 28, 1997.
    E. Barclay Van Doren,
    Chair, Department of Energy, Board of Contract Appeals.
    
        For the reasons set forth in the preamble, parts 703 and 1023 of 
    title 10 of the Code of Federal Regulations are amended as set forth 
    below:
    
    PART 703--CONTRACT APPEALS [REMOVED]
    
        1. Under the authority of 42 U.S.C. 2201(p), 42 U.S.C. 5814 (b) & 
    (h) and 42 U.S.C. 7151, part 703 is removed.
    
    PART 1023--CONTRACT APPEALS
    
        2. The authority citation for part 1023 is added to read as 
    follows:
    
        Authority: 42 U.S.C. 2201, 5814, 7151, 7251; 5 U.S.C. 301; 41 
    U.S.C. 321, 322, 601-613; 5 U.S.C. 571-583; 9 U.S.C. 1-16 unless 
    otherwise noted.
    
        3. Part 1023 is amended by adding an undesignated center heading 
    and Secs. 1023.1 through 1023.9 before subpart A to read as follows:
    
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    Overview: Organization, Functions and Authorities
    
    Sec.
    1023.1  Introductory material on the Board and its functions.
    1023.2  Organization and location of the Board.
    1023.3  Principles of general applicability.
    1023.4  Authorities.
    1023.5  Duties and responsibilities of the Chair.
    1023.6  Duties and responsibilities of Board members and staff.
    1023.7  Board decisions; assignment of judges.
    1023.8  Alternative dispute resolution (ADR).
    1023.9  General guidelines.
    
    
    Sec. 1023.1  Introductory material on the Board and its functions.
    
        (a) The Energy Board of Contract Appeals (``EBCA'' or ``Board'') 
    functions as a separate quasi-judicial entity within the Department of 
    Energy (DOE). The Secretary has delegated to the Board's Chair the 
    appropriate authorities necessary for the Board to maintain its 
    separate operations and decisional independence.
        (b) The Board's primary function is to hear and decide appeals from 
    final decisions of DOE contracting officers on claims pursuant to the 
    Contract Disputes Act of 1978 (CDA), 41 U.S.C. 601 et seq. The Board's 
    Rules of Practice for these appeals are set forth in subpart A of this 
    part. Rules relating to recovery of attorney fees and other expenses 
    under the Equal Access to Justice Act are set forth in subpart C of 
    this part.
        (c) In addition to its functions under the CDA, the Secretary in 
    Delegation Order 0204-162 has authorized the Board to:
        (1) Adjudicate appeals from agency contracting officers' decisions 
    not taken pursuant to the CDA (non-CDA disputes) under the Rules of 
    Practice set forth in subpart A of this part;
        (2) Perform other quasi-judicial functions that are consistent with 
    the Board members' duties under the CDA as directed by the Secretary;
        (3) Serve as the Energy Financial Assistance Appeals Board to hear 
    and decide certain appeals by the Department's financial assistance 
    recipients as provided in 10 CFR 600.22, under Rules of Procedure set 
    forth in 10 CFR part 1024;
        (4) Serve as the Energy Invention Licensing Appeals Board to hear 
    and decide appeals from license terminations, denials of license 
    applications and petitions by third-parties for license terminations, 
    as provided in 10 CFR part 781, under Rules of Practice set forth in 
    subpart A of this part, modified by the Board as determined to be 
    necessary and appropriate with advance notice to the parties; and
        (5) Serve as the Energy Patent Compensation Board to hear and 
    decide, as provided in 10 CFR part 780, certain applications and 
    petitions filed under authority provided by the Atomic Energy Act of 
    1954, ch. 1073, 68 Stat. 919 (1954), and the Invention Secrecy Act, 35 
    U.S.C. 181-188, including:
        (i) Whether a patent is affected with the public interest;
        (ii) Whether a license to a patent affected by the public interest 
    should be granted and equitable terms therefor; and
        (iii) Whether there should be allotment of royalties, award, or 
    compensation to a party contributing to the making of certain 
    categories of inventions or discoveries, or an owner of a patent within 
    certain categories, under Rules of Practice set forth in subpart A of 
    this part, modified by the Board as determined to be necessary and 
    appropriate, with advance notice to the parties.
        (d) The Board provides alternative disputes resolution neutral 
    services and facilities, as agreed between the parties and the Board, 
    for:
        (1) Disputes related to the Department's prime contracts and to 
    financial assistance awards made by the Department.
        (2) Disputes related to contracts between the Department's cost-
    reimbursement contractors, including Management and Operating 
    Contractors (M&Os) and Environmental Remediation Contractors (ERMCs), 
    and their subcontractors. Additionally, with the consent of both the 
    responsible prime DOE cost-reimbursement contractor and the cognizant 
    DOE Contracting Officer, the Board may provide neutral services and 
    facilities for disputes under second tier subcontracts where the costs 
    of litigating the dispute might be ultimately charged to the DOE as 
    allowable costs through the prime contract.
        (3) Other matters involving DOE procurement and financial 
    assistance, as appropriate.
    
    
    Sec. 1023.2  Organization and location of the Board.
    
        (a) Location of the Board. (1) The Board's offices are located at, 
    and hand and commercial parcel deliveries should be made to: Board of 
    Contract Appeals, U.S. Department of Energy, 950 L'Enfant Plaza, SW., 
    Suite 810, Washington, DC 20024.
        (2) The Board's mailing address is as follows. The entire nine 
    digit ZIP code should be used to avoid delay: Board of Contract 
    Appeals, U.S. Department of Energy, HG-50, Building 950, Washington, DC 
    20585-0116.
        (3) The Board's telephone numbers are (202) 426-9316 (voice) and 
    (202) 426-0215 (facsimile).
        (b) Organization of the Board. As required by the CDA, the Board 
    consists of a Chair, a Vice Chair, and at least one other member. 
    Members are designated Administrative Judges. The Chair is designated 
    Chief Administrative Judge and the Vice Chair, Deputy Chief 
    Administrative Judge.
    
    
    Sec. 1023.3  Principles of general applicability.
    
        (a) Adjudicatory functions. The following principles shall apply to 
    all adjudicatory activities whether pursuant to the authority of the 
    CDA, authority delegated under this part, or authority of other laws, 
    rules, or directives.
        (1) The Board shall hear and decide each case independently, 
    fairly, and impartially.
        (2) Decisions shall be based exclusively upon the record 
    established in each case. Written or oral communication with the Board 
    by or for one party is not permitted without participation or notice to 
    other parties. Except as provided by law, no person or agency, directly 
    or indirectly involved in a matter before the Board, may submit off the 
    record to the Board or the Board's staff any evidence, explanation, 
    analysis, or advice (whether written or oral) regarding any matter at 
    issue in an appeal, nor shall any member of the Board or of the Board's 
    staff accept or consider ex parte communications from any person. This 
    provision does not apply to consultation among Board members or staff 
    or to other persons acting under authority expressly granted by the 
    Board with notice to parties. Nor does it apply to communications 
    concerning the Board's administrative functions or procedures, 
    including ADR.
        (3) Decisions of the Board shall be final agency decisions and 
    shall not be subject to administrative appeal or administrative review.
        (b) Alternative Dispute Resolution (ADR) Functions. (1) Board 
    judges and personnel shall perform ADR related functions impartially, 
    with procedural fairness, and with integrity and diligence.
        (2) Ex parte communications with Board staff and judges limited to 
    the nature, procedures, and availability of ADR through the Board are 
    permitted and encouraged. Once parties have agreed to engage in ADR and 
    have entered into an ADR agreement accepted by the Board, ex parte 
    communications by Board neutrals,
    
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    support staff and parties shall be as specified by any applicable 
    agreements or protocols and as is consistent with law, integrity, and 
    fairness.
        (3) Board-supplied neutrals and support personnel shall keep ADR 
    matters confidential and comply with any confidentiality requirements 
    of ADR agreements accepted by the Board. Board personnel may not 
    disclose any confidential information unless permitted by the parties 
    or required to do so by law.
    
    
    Sec. 1023.4  Authorities.
    
        (a) Contract Disputes Act Authorities. The CDA imposes upon the 
    Board the duty, and grants it the powers necessary, to hear and decide, 
    or to otherwise resolve through agreed procedures, appeals from 
    decisions made by agency contracting officers on contractor claims 
    relating to contracts entered into by the DOE or relating to contracts 
    of another agency, as provided in Section 8(d) of the CDA, 41 U.S.C. 
    607(d). The Board may issue rules of practice or procedure for 
    proceedings pursuant to the CDA. The CDA also imposes upon the Board 
    the duty, and grants it powers necessary, to act upon petitions for 
    orders directing contracting officers to issue decisions on claims 
    relating to such contracts, 41 U.S.C. 605(c)(4). The Board may apply 
    through the Attorney General to an appropriate United States District 
    Court for an order requiring a person, who has failed to obey a 
    subpoena issued by the Board, to produce evidence or to give testimony, 
    or both, 41 U.S.C. 610.
        (b) General Powers and Authorities. The Board's general powers 
    include, but are not limited to, the powers to:
        (1) Manage its cases and docket; issue procedural orders; conduct 
    conferences and hearings; administer oaths; authorize and manage 
    discovery, including depositions and the production of documents or 
    other evidence; take official notice of facts within general knowledge; 
    call witnesses on its own motion; engage experts; dismiss actions with 
    or without prejudice; decide all questions of fact or law raised in an 
    action; and make and publish rules of practice and procedure;
        (2) Exercise, in proceedings to which it applies, all powers 
    granted to arbitrators by the Federal Arbitration Act, 9 U.S.C. 1-14, 
    including the power to issue summonses.
        (c) In addition to its authorities under the CDA, the Board has 
    been delegated by Delegation Order 0204-162 issued by the Secretary of 
    Energy, the following authorities:
        (1) Issue rules, including rules of procedure, not inconsistent 
    with this section and departmental regulations;
        (2) Issue subpoenas under the authority of Sec. 161.c of the Atomic 
    Energy Act of 1954, 42 U.S.C. 2201(c), as applicable;
        (3) Such other authorities as the Secretary may delegate.
    
    
    Sec. 1023.5  Duties and Responsibilities of the Chair.
    
        The Chair shall be responsible for the following:
        (a) The proper administration of the Board;
        (b) Assignment and reassignment of cases, including alternative 
    dispute resolution (ADR) proceedings, to administrative judges, hearing 
    officers, and decision panels;
        (c) Monitoring the progress of individual cases to promote their 
    timely resolution;
        (d) Appointment and supervision of a Recorder;
        (e) Arranging for the services of masters, mediators, and other 
    neutrals;
        (f) Issuing delegations of Board authority to individual 
    administrative judges, panels of judges, commissioners, masters, and 
    hearing officers within such limits, if any, which a majority of the 
    members of the Board shall establish;
        (g) Designating an acting chair during the absence of both the 
    Chair and the Vice Chair;
        (h) Designating a member of another Federal board of contract 
    appeals to serve as the third member of a decision panel if the Board 
    is reduced to less than three members because of vacant positions, 
    protracted absences, disabilities or disqualifications;
        (i) Authorizing and approving ADR arrangements for Board cases; 
    obtaining non-Board personnel to serve as settlement judges, third-
    party neutrals, masters and similar capacities; authorizing the use of 
    Board-provided personnel and facilities in ADR capacities, for matters 
    before the Board, and for other matters when requested by officials of 
    the DOE; and entering into arrangements with other Federal 
    administrative forums for the provision of personnel to serve in ADR 
    capacities on a reciprocal basis;
        (j) Recommending to the Secretary the selection of qualified and 
    eligible members. New members shall, upon selection, be appointed to 
    serve as provided in the CDA;
        (k) Determining whether member duties are consistent with the CDA; 
    and
        (l) Reporting Board activities to the Secretary not less often than 
    biennially.
    
    
    Sec. 1023.6  Duties and responsibilities of Board members and staff.
    
        (a) As is consistent with the Board's functions, Board members and 
    staff shall perform their duties with the highest integrity and 
    consistent with the principles set forth in Sec. 1023.3.
        (b) Members of the Board and Board attorneys may serve as 
    commissioners, magistrates, masters, hearing officers, arbitrators, 
    mediators, and neutrals and in other similar capacities.
        (c) Except as may be ordered by a court of competent jurisdiction, 
    members of the Board and its staff are permanently barred from ex parte 
    disclosure of information concerning any Board deliberations.
    
    
    Sec. 1023.7  Board decisions; assignment of judges.
    
        (a) In each case, the Chair shall assign an administrative judge as 
    the Presiding Administrative Judge to hear a case and develop the 
    record upon which the decision will be made. A Presiding Judge has 
    authority to act for the Board in all non-dispositive matters, except 
    as otherwise provided in this Part. This subparagraph shall not 
    preclude the Presiding Administrative Judge from taking dispositive 
    actions as provided in this Part or by agreement of the parties. Other 
    persons acting as commissioners, magistrates, masters, or hearing 
    officers shall have such powers as the Board shall delegate.
        (b) Except as provided by law, rule, or agreement of the parties, 
    contract appeals and other cases are assigned to a deciding panel 
    established by the Board Chair consisting of two or more administrative 
    judges.
        (c) The concurring votes of a majority of a deciding panel shall be 
    sufficient to decide an appeal. All members assigned to a panel shall 
    vote unless unavailable. The Chair will assign an additional member if 
    necessary to resolve tie votes.
    
    
    Sec. 1023.8  Alternative dispute resolution (ADR).
    
        (a) Statement of Policy. It is the policy of the DOE and of the 
    Board to facilitate consensual resolution of disputes and to employ ADR 
    in all of the Board's functions when agreed to by the parties. ADR is a 
    core judicial function performed by the Board and its judges.
        (b) ADR for Docketed Cases. Pursuant to the agreement of the 
    parties, the Board, in an exercise of discretion, may approve either 
    the use of Board-annexed ADR (ADR which is conducted under Board 
    auspices and pursuant to Board order) or the suspension of the Board's 
    procedural schedule to permit the parties to engage in ADR outside of 
    the Board's purview. While any form of
    
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    ADR may be employed, the forms of ADR commonly employed using Board 
    judges as neutrals are: case evaluation by a settlement judge (with or 
    without mediation by the judge); arbitration; mini-trial; summary (time 
    and procedurally limited) trial with one-judge; summary binding (non-
    appealable) bench decision; and fact-finding.
        (c) ADR for Non-Docketed Disputes. As a general matter the earlier 
    a dispute is identified and resolved, the less the financial and other 
    costs incurred by the parties. When a contract is not yet complete 
    there may be opportunities to eliminate tensions through ADR and to 
    confine and resolve problems in a way that the remaining performance is 
    eased and improved. For these reasons, the Board is available to 
    provide a full range of ADR services and facilities before, as well as 
    after, a case is filed with the Board. A contracting officer's decision 
    is not a prerequisite for the Board to provide ADR services and such 
    services may be furnished whenever they are warranted by the overall 
    best interests of the parties. The forms of ADR most suitable for mid-
    performance disputes are often the non-dispositive forms such as 
    mediation, facilitation and fact-finding, mini-trials, or non-binding 
    arbitration, although binding arbitration is also available.
        (d) Availability of Information on ADR. Parties are encouraged to 
    consult with the Board regarding the Board's ADR services at the 
    earliest possible time. A handbook describing Board ADR is available 
    from the Board upon request.
    
    
    Sec. 1023.9  General guidelines.
    
        (a) The principles of this Overview shall apply to all Board 
    functions unless a specific provision of the relevant rules of practice 
    applies. It is, however, impractical to articulate a rule to fit every 
    circumstance. Accordingly, this part, and the other Board Rules 
    referenced in it, will be interpreted and applied consistent with the 
    Board's responsibility to provide just, expeditious, and inexpensive 
    resolution of cases before it. When Board rules of procedure do not 
    cover a specific situation, a party may contend that the Board should 
    apply pertinent provisions from the Federal Rules of Civil Procedure. 
    However, while the Board may refer to the Federal Rules of Civil 
    Procedure for guidance, such Rules are not binding on the Board absent 
    a ruling or order to the contrary.
        (b) The Board is responsible to the parties, the public, and the 
    Secretary for the expeditious resolution of cases before it. 
    Accordingly, subject to the objection of a party, the procedures and 
    time limitations set forth in rules of procedure may be modified, 
    consistent with law and fairness. Presiding judges and hearing officers 
    may issue prehearing orders varying procedures and time limitations if 
    they determine that purposes of the CDA or the interests of justice 
    would be advanced thereby and provided both parties consent. Parties 
    should not consume an entire period authorized for an action if the 
    action can be sooner completed. Informal communication between parties 
    is encouraged to reduce time periods whenever possible.
        (c) The Board shall conduct proceedings in compliance with the 
    security regulations and requirements of the Department or other agency 
    involved.
        4. Subpart A is amended by removing Secs. 1023.1 through 
    Sec. 1023.6, redesignating Sec. 1023.20 as Sec. 1023.120 and adding 
    Secs. 1023.101 and 1023.102, reading as follows:
    
    
    Sec. 1023.101  Scope and purpose.
    
        The rules of the Board of Contract Appeals are intended to govern 
    all appeal procedures before the Department of Energy Board of Contract 
    Appeals (Board) which are within the scope of the Contract Disputes Act 
    of 1978 (41 U.S.C. 601 et seq.). The rules, with modifications 
    determined by the Board to be appropriate to the nature of the dispute, 
    also apply to all other contract and subcontract related appeals which 
    are properly before the Board.
    
    
    Sec. 1023.102  Effective date.
    
        The rules of the Board of Contract Appeals shall apply to all 
    proceedings filed on or after June 6, 1997, except that Rule 1 (a) and 
    (b) of Sec. 1023.120 shall apply only to appeals filed on or after 
    October 1, 1995.
    
    
    Sec. 1023.120  [Amended]
    
        5. Newly designated section 1023.120 is amended by revising 
    ``$50,000'' to read ``$100,000'' in the following paragraphs:
    
    Rule 1, paragraph (b)
    Rule 1, paragraph (c)
    Rule 6, paragraph (b)
    Rule 14, paragraph (a)
    
        6. Newly designated section 1023.120 is amended by revising 
    ``$10,000'' to read ``$50,000'' in the following paragraphs:
    
    Rule 6, paragraph (b)
    Rule 13, paragraph (a)
    
    Subpart B--[Removed and Reserved]
    
        7. Subpart B--is removed and reserved.
    
    
    Sec. 1023.327  [Amended]
    
        8. Section 1023.327 of subpart C is amended by revising ``10 CFR 
    1023.20'' to read ``10 CFR 1023.120.''
    
    [FR Doc. 97-11728 Filed 5-6-97; 8:45 am]
    BILLING CODE 6450-01-P
    
    
    

Document Information

Effective Date:
6/6/1997
Published:
05/07/1997
Department:
Energy Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-11728
Dates:
This rule is effective June 6, 1997.
Pages:
24804-24808 (5 pages)
RINs:
1901-AA30: Energy Board of Contract Appeals; Organization, Functions, and Authorities; Rules of Practice
RIN Links:
https://www.federalregister.gov/regulations/1901-AA30/energy-board-of-contract-appeals-organization-functions-and-authorities-rules-of-practice
PDF File:
97-11728.pdf
CFR: (14)
10 CFR 1023.20''
10 CFR 1023.1
10 CFR 1023.2
10 CFR 1023.3
10 CFR 1023.4
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