97-27422. Acquisition Regulation: Acquisition Streamlining  

  • [Federal Register Volume 62, Number 200 (Thursday, October 16, 1997)]
    [Rules and Regulations]
    [Pages 53754-53759]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-27422]
    
    
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    DEPARTMENT OF ENERGY
    
    48 CFR Parts 901, 903, 904, 912, 913, 915, 916, 932, 933, 939, 944 
    and 970
    
    RIN 1991-AB35
    
    
    Acquisition Regulation: Acquisition Streamlining
    
    AGENCY: Department of Energy.
    
    ACTION: Final rule.
    
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    SUMMARY: The Department of Energy (DOE) is amending the Department of 
    Energy Acquisition Regulation (DEAR) to supplement the Federal 
    Acquisition Regulation's (FAR) implementation of certain provisions of 
    the Federal Acquisition Streamlining Act of 1994 and the Clinger-Cohen 
    Act of 1996. In addition, DOE is amending the DEAR to eliminate 
    unnecessary and obsolete coverage and to make certain technical and 
    conforming amendments, as appropriate.
    
    DATES: This final rule is effective November 17, 1997.
    
    FOR FURTHER INFORMATION CONTACT: John R. Bashista (202) 586-8192 
    (telephone); (202) 586-0545 (facsimile); john.bashista@hq.doe.gov 
    (electronic mail).
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    II. Section-by-Section Analysis
    III. Procedural Requirements.
        A. Review Under Executive Order 12612.
        B. Review Under Executive Order 12866.
        C. Review Under Executive Order 12988.
        D. Review Under the National Environmental Policy Act.
    
    [[Page 53755]]
    
        E. Review Under the Paperwork Reduction Act.
        F. Review Under the Small Business Regulatory Enforcement 
    Fairness Act.
        G. Review Under the Unfunded Mandates Reform Act.
    
    I. Background.
    
        The Federal Acquisition Streamlining Act of 1994 (FASA), Pub. L. 
    103-355, was enacted on October 13, 1994, and provides authorities that 
    streamline the acquisition process and minimize burdensome government-
    unique requirements. Among the many changes brought about by this 
    legislation, FASA established new and innovative acquisition 
    streamlining concepts and methods pertaining to the acquisition of 
    commercial items; simplified acquisition procedures; multiple award, 
    task and delivery order contracts; protests; and changes to the Truth 
    in Negotiations Act. The Clinger-Cohen Act of 1996, Pub. L. 104-208, 
    was enacted on September 30, 1996, to further streamline the Federal 
    procurement system in such areas as competition requirements, 
    debriefings, procurement integrity and the acquisition of commercial 
    items and information technology products and services. The issuance of 
    interim and final rules implementing these statutes in the FAR has been 
    largely completed. Accordingly, this rulemaking will implement and 
    supplement, as appropriate, the FAR's implementation of certain 
    provisions of the FASA and Clinger-Cohen Act of 1996. This final rule 
    will also eliminate obsolete coverage and make necessary technical and 
    conforming amendments to the DEAR.
    
    II. Section-by-Section Analysis
    
        1. The authority for citations for parts 901, 903, 904, 913, 915, 
    916, 932, 933, 939 and 944 are restated.
        2. Section 901.601, General, which addresses contracting authority 
    and responsibilities, is amended by designating the current paragraph 
    as paragraph (a), and by adding new paragraph (b) to identify that the 
    authority set forth at 48 CFR 1.601(b) is delegated within DOE to the 
    Procurement Executive.
        3. Subsection 903.104-11, Processing violations or possible 
    violations under procurement integrity, is redesignated as subsection 
    903.104-10, and the subsection heading and coverage are revised to 
    conform to recent FAR changes.
        4. Subsection 904.804-1, Close out by the office administering the 
    contract, which addresses contract closeout procedures, is amended by 
    deleting the reference to section 942.708 and substituting in lieu 
    thereof a reference to 48 CFR 42.708.
        5. Part 912, Acquisition of Commercial Items, is added and the 
    authority for new Part 912 is stated as 42 U.S.C. 7254 and 40 U.S.C. 
    486(c).
        6. Section 912.302, Tailoring of provisions and clauses for the 
    acquisition of commercial items, is added to incorporate DOE's 
    procedures for waiving the prohibition at 48 CFR 12.302(c) on tailoring 
    or adding terms or conditions that are inconsistent with customary 
    commercial practice for a solicitation or contract for commercial 
    items.
        7. Subsection 913.505-1, which addresses the use of certain forms 
    for simplified acquisitions, is amended by redesignating subparagraph 
    (a)(2) as paragraph (a); deleting the last sentence of redesignated 
    paragraph (a) and substituting in lieu thereof a reference to 48 CFR 
    12.204 regarding the use of the Standard Form 1449, Solicitation/
    Contract/Order for Commercial Items; and removing subparagraph (b)(2) 
    in its entirety as the coverage is obsolete.
        8. Subsection 915.804-3, Exemptions from or waiver of submission of 
    certified cost or pricing data, is redesignated as subsection 915.804-
    1, and the subsection heading and coverage are revised to conform with 
    recent changes to the FAR.
        9. Subsection 915.804-6, which addresses the authority to waive 
    requirements for cost or pricing data under certain circumstances, is 
    amended to conform with recent FAR changes by revising the subsection 
    heading, and removing paragraph (i) which contains obsolete coverage.
        10. Subsection 915.806-2, Prospective subcontractor cost or pricing 
    data, is added to implement FAR coverage regarding the authority to 
    excuse a prospective contractor from submitting subcontractor cost or 
    pricing data.
        11. Subpart 915.10, Preaward, Award, and Postaward Notifications, 
    Protests and Mistakes, which addresses the debriefing of unsuccessful 
    offerors, is removed as the coverage is obsolete and unnecessary 
    pursuant to recent changes to 48 CFR 15.10.
        12. Section 916.504, Indefinite-quantity contracts, is added to 
    implement the Department's policy regarding the incorporation of 
    minimum ordering guarantees in multiple award contracts.
        13. Section 916.505, Ordering, is added to implement the 
    Department's policies and procedures pertaining to Task Order Contract 
    and Delivery Order Contract Ombudsman duties and responsibilities.
        14. Subpart 932.4 is amended to revise the heading of the subpart 
    to conform with recent changes to the FAR.
        15. Subsection 933.102, General, is added to identify that the 
    authority set forth at 48 CFR 33.102(b) to provide corrective relief in 
    response to a protest is delegated within DOE to the Heads of 
    Contracting Activities.
        16. Part 939, Acquisition of Federal Information Processing 
    Resources By Contracting, is revised to update the coverage pursuant to 
    recent FAR changes resulting from the passage and implementation of 
    Section E of the Clinger-Cohen Act of 1996.
        17. Part 944, Subcontracting Policies and Procedures, which 
    addresses obsolete internal DOE subcontracting policies and procedures 
    pertaining to contractors' purchasing system reviews, is removed.
        18. The authority citation for Part 970 is restated.
        19. Subsection 970.1508-1, which addresses the applicability of 
    cost or pricing data to DOE cost-reimbursement management and operating 
    contracts, is amended to update and clarify the Department's coverage 
    pursuant to recent changes to the FAR resulting from FASA and Clinger-
    Cohen Act amendments to the Truth in Negotiations Act and to prescribe 
    the use of appropriate FAR clauses regarding requirements for 
    subcontractor cost or pricing data.
        20. Subsection 970.5204-22, Contractor purchasing system, is 
    amended by revising paragraph (a) to incorporate requirements for the 
    management of a Self-Assessment Program, and the Government's review of 
    contractors' purchasing systems in accordance with FAR subpart 44.3 and 
    other DOE implementing policy and guidance. The section is further 
    amended by revising paragraph (b) to correct an obsolete reference.
        21. Subsection 970.5204-24, Subcontractor cost or pricing data, is 
    removed and the subsection reserved pursuant to the amendments made to 
    subsections 970.1508-1 and 970.5204-44.
        22. Subsection 970.5204-44, which prescribes subcontract flowdown 
    requirements for DOE management and operating contractors, is amended 
    to revise the coverage set forth therein regarding the flowdown of 
    subcontractor cost or pricing data requirements.
        23. Subsection 970.5204-60, Facilities management, is amended to 
    update the clause pursuant to the cancellation and/or redesignation of 
    several internal DOE Directives referenced therein.
    
    [[Page 53756]]
    
    III. Procedural Requirements.
    
    A. Review Under Executive Order 12612
    
        Executive Order 12612, entitled ``Federalism,'' 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 Federal Government and the 
    States, or 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. DOE has determined that 
    this rule will not have a substantial direct effect on the 
    institutional interests or traditional functions of States.
    
    B. 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 that 
    Executive Order, by the Office of Information and Regulatory Affairs of 
    the Office of Management and Budget (OMB).
    
    C. 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 
    section 3(a) and section 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 regulations meet the relevant standards of Executive Order 12988.
    
    D. Review Under the National Environmental Policy Act
    
        Pursuant to the Council on Environmental Quality Regulations (40 
    CFR 1500-1508), the Department has established guidelines for its 
    compliance with the provisions of the National Environmental Policy Act 
    (NEPA) of 1969 (42 U.S.C. 4321, et seq.). Pursuant to Appendix A of 
    Subpart D of 10 CFR part 1021, National Environmental Policy Act 
    Implementing Procedures (Categorical Exclusion A6), DOE has determined 
    that this rule is categorically excluded from the need to prepare an 
    environmental impact statement or environmental assessment.
    
    E. Review Under the Paperwork Reduction Act
    
        No new information collection or recordkeeping requirements are 
    imposed by this rule. Accordingly, no OMB clearance is required under 
    the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et seq.).
    
    F. 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. 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).
    
    G. 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. This rulemaking only affects private sector entities, and the 
    impact is less than $100 million.
    
    List of Subjects in 48 CFR Parts 901, 903, 904, 912, 913, 915, 916, 
    932, 933, 939, 944 and 970
    
        Government procurement.
    
        Issued in Washington, D.C. on October 9, 1997.
    Richard H. Hopf,
    Deputy Assistant Secretary for Procurement and Assistance Management.
    
        For the reasons set forth in the preamble, Chapter 9 of Title 48 of 
    the Code of Federal Regulations is amended as set forth below.
        1. The authority citations for parts 901, 903, 904, 913, 915, 916, 
    932, 933, 939 and 944 continue to read as follows:
    
        Authority: 42 U.S.C. 7254; 40 U.S.C. 486(c).
    
    PART 901--FEDERAL ACQUISITION REGULATIONS SYSTEM
    
        2. Section 901.601 is amended to designate the existing paragraph 
    as paragraph (a) and by adding new paragraph (b) to read as follows:
    
    
    901.601  General.
    
        (a) * * *
        (b) The Procurement Executive has been authorized, without power of 
    redelegation, to perform the functions set forth at 48 CFR 1.601(b) 
    regarding the assignment of contracting functions and responsibilities 
    to another agency, and the creation of joint or combined offices with 
    another agency to exercise acquisition functions and responsibilities.
    
    PART 903--IMPROPER BUSINESS PRACTICES AND PERSONAL CONFLICTS OF 
    INTEREST
    
        3. Subsection 903.104-11 is redesignated as subsection 903.104-10, 
    and revised to read as follows:
    
    
    903.104-10  Violations or possible violations (DOE coverage--paragraph 
    (a)).
    
        (a) Except for Headquarters activities, the individual within DOE 
    responsible for fulfilling the requirements of 48 CFR 3.104-10(a) (1) 
    and (2) relative to contracting officer conclusions on the impact of a 
    violation or possible violation of subsections 27 (a), (b), (c) or (d) 
    of the Office of Federal Procurement Policy Act shall be the legal 
    counsel assigned direct responsibility for providing legal advice to 
    the contracting office making the award or selecting the source. The 
    legal counsel is the Chief Counsel for the Operations Offices or the 
    Federal Energy Technology Center; the Counsel, or the Chief Counsel, 
    for the Support Offices or the Naval Reactors Offices; and the General 
    Counsel for the Power Administrations. For Headquarters activities, the 
    individual designated to perform the responsibilities in 48 CFR 3.104-
    10(a) (1) and (2) regarding questions of disclosure of proprietary or 
    source
    
    [[Page 53757]]
    
    selection information is the Assistant General Counsel for Procurement 
    and Financial Assistance. The designated individual for other questions 
    regarding 48 CFR 3.104-10(a) (1) and (2) for Headquarters activities is 
    the Agency Ethics Official (Designated Agency Ethics Official).
    
    PART 904--ADMINISTRATIVE MATTERS
    
        4. Subsection 904.804-1 is amended by revising the section heading 
    and paragraph (b) to read as follows:
    
    
    904.804-1  Closeout by the office administering the contract (DOE 
    Coverage--paragraphs (a) and (b)).
    
    * * * * *
        (b) Quick closeout procedures for cost reimbursable and other than 
    firm fixed price type contracts are covered under 48 CFR 42.708.
        5-6. Part 912 is added in Subchapter B to read as follows:
    
    PART 912--ACQUISITION OF COMMERCIAL ITEMS
    
    Subpart 912.3--Solicitation Provisions and Contract Clauses for the 
    Acquisition of Commercial Items
    Sec.
    912.302  Tailoring of provisions and clauses for the acquisition of 
    commercial items.
    
        Authority: 42 U.S.C. 7254; 40 U.S.C. 486(c).
    
    Subpart 912.3--Solicitation Provisions and Contract Clauses for the 
    Acquisition of Commercial Items
    
    
    912.302  Tailoring of provisions and clauses for the acquisition of 
    commercial items. (DOE coverage--paragraph (c))
    
        (c) The waiver required by 48 CFR 12.302(c) shall be in writing and 
    approved by the contracting officer.
    
    PART 913--SIMPLIFIED ACQUISITION PROCEDURES
    
        7. Subsection 913.505-1 is revised to read as follows:
    
    
    913.505-1  Optional Form (OF) 347, Order for Supplies or Services, and 
    Optional Form 348, Order for Supplies or Services Schedule-Continuation 
    or DOE F 4250.3, Order for Supplies or Services. (DOE coverage--
    paragraph (a))
    
        (a) Optional Forms 347 and 348, or DOE F 4250.3, may be used for 
    purchase orders using simplified acquisition procedures. These forms 
    shall not be used as the contractor's invoice. See 48 CFR 12.204 
    regarding the use of SF-1449 for the acquisition of commercial items 
    using simplified acquisition procedures.
    
    PART 915--CONTRACTING BY NEGOTIATION
    
        8. Subsection 915.804-3 is redesignated as subsection 915.804-1, 
    and revised to read as follows:
    
    
    915.804-1  Prohibition on obtaining cost or pricing data (DOE 
    coverage--paragraph (b)).
    
        (b) The Heads of Contracting Activities, for contracts estimated to 
    be within the limits of their delegated authority, may approve the 
    finding required by 48 CFR 15.804-1(b)(1)(i)(B), and the determination 
    required by 48 CFR 15.804-1 (b)(1)(ii)(B).
        9. Subsection 915.804-6 is revised to read as follows:
    
    
    915.804-6  Instructions for the submission of cost or pricing data or 
    information other than cost or pricing data (DOE coverage--paragraph 
    (e)).
    
        (e) The Heads of Contracting Activities, for contracts estimated to 
    be within the limits of their delegated authority, may, without power 
    of redelegation, waive the requirements for cost or pricing data under 
    the circumstances set forth in 48 CFR 15.804-6(e). Such waivers shall 
    be reported to the Procurement Executive.
        10. Subsection 915.806-2 is added in Subchapter C to read as 
    follows:
    
    
    915.806-2  Prospective subcontractor cost or pricing data (DOE 
    coverage--paragraph (e)).
    
        (e) The Heads of Contracting Activities, for contracts estimated to 
    be within the limits of their delegated authority, may, without power 
    of redelegation, approve the contracting officer's determination to 
    excuse a prospective contractor from submitting subcontractor cost or 
    pricing data before completion of negotiations of the prime contract, 
    subject to the requirements set forth in 48 CFR 15.806-2(e).
    
    Subpart 915.10 [Removed]
    
        11. Subpart 915.10 in Subchapter C is removed.
    
    PART 916--TYPES OF CONTRACTS
    
        12. Section 916.504 is added in Subchapter C to read as follows:
    
    
    916.504  Indefinite-quantity contracts (DOE coverage-paragraph (c)).
    
        (c) The contracting officer shall establish minimum ordering 
    guarantees with each awardee for all indefinite-quantity, multiple 
    award contracts to ensure that adequate consideration exists to 
    contractually bind each awardee to participate in the ordering process 
    throughout the term of the multiple award contract. Minimum ordering 
    guarantees should be equal among all awardees, and shall be determined 
    on a case-by-case basis for each acquisition commensurate with the 
    size, scope and complexity of the contract requirements.
        13. Section 916.505 is added in Subchapter C to read as follows:
    
    
    916.505  Ordering (DOE coverage--paragraph (b)).
    
        (b) (4) The Director, Office of Management Systems, Office of 
    Procurement and Assistance Management, is designated as the DOE 
    Ombudsman for task and delivery order contracts in accordance with 48 
    CFR 16.505(b)(4).
        (5) The Heads of Contracting Activities shall designate a senior 
    manager to serve as the Contracting Activity Ombudsman for task and 
    delivery order contracts. If, for any reason, the Contracting Activity 
    Ombudsman is unable to execute the duties of the position, the Head of 
    the Contracting Activity shall designate an Acting Contracting Activity 
    Ombudsman.
        (6) The Contracting Activity Ombudsman shall:
        (i) Be independent of the contracting officer who awarded and/or is 
    administering the contract under which a complaint is submitted;
        (ii) Not assume any duties and responsibilities pertaining to the 
    evaluation or selection of an awardee for the issuance of an order 
    under a multiple award, task or delivery order contract;
        (iii) Review complaints from contractors awarded a task or delivery 
    order contract;
        (iv) Collect all facts from the cognizant organizations or 
    individuals that are relevant to a complaint submitted to ensure that 
    the complainant and all contractors were afforded a fair opportunity to 
    be considered for the order issued in accordance with the procedures 
    set forth in each awardees' contract;
        (v) Maintain a written log to track each complaint submitted from 
    receipt through disposition;
        (vi) Ensure that no information is released which is determined to 
    be proprietary or is designated as source selection information; and
        (vii) Resolve complaints at the contracting activity for which they 
    have cognizance.
        (7) If, upon review of all relevant information, the Contracting 
    Activity Ombudsman determines that corrective action should be taken, 
    the Contracting Activity Ombudsman shall report the determination to 
    the cognizant
    
    [[Page 53758]]
    
    contracting officer. Issues which cannot be so resolved should be 
    forwarded to the DOE Ombudsman.
    
    PART 932--CONTRACT FINANCING
    
        14. Subpart 932.4 is amended by revising the heading of the subpart 
    to read as follows:
    
    Subpart 932.4--Advance Payments for Non-Commercial Items
    
    PART 933--PROTESTS, DISPUTES AND APPEALS
    
        15. Section 933.102 is added in Subchapter E to read as follows:
    
    
    933.102  General (DOE coverage--paragraph (b)).
    
        (b) The Heads of Contracting Activities, for contracts estimated to 
    be within the limits of their delegated authority, may, without power 
    of redelegation, provide corrective relief in response to a protest in 
    accordance with 48 CFR 33.102(b).
        16. Part 939 is revised in its entirety to read as follows:
    
    PART 939--ACQUISITION OF INFORMATION TECHNOLOGY
    
    Subpart 939.70--Implementing DOE Policies and Procedures
    
    Sec.
    939.7000  Scope.
    939.7001  Outdated information technology equipment.
    939.7002  Contractor acquisition of information technology.
    
        Authority: 42 U.S.C. 7254; 40 U.S.C. 486(c).
    
    Subpart 939.70--Implementing DOE Policies and Procedures
    
    
    939.7000  Scope.
    
        This part sets forth the policies and procedures that apply to the 
    acquisition of information technology by the Department of Energy 
    (DOE).
    
    
    939.7001  Outdated information technology equipment.
    
        Solicitations and contracts for, or using, outdated information 
    technology equipment shall be submitted to the Office of Management 
    Systems, Office of Procurement and Assistance Management for review and 
    approval. The Office of Information Management shall review these 
    documents and make the decision whether to allow the acquisition or use 
    of outdated information technology equipment.
    
    
    939.7002  Contractor acquisition of information technology.
    
        (a) Management and operating (M&O) contracts. Except as provided in 
    paragraph (c) of this section, M&O contractors and their subcontractors 
    shall not be used to acquire information technology unrelated to the 
    mission of the M&O contract either for sole use by DOE employees or 
    employees of other DOE contractors, or for use by other Federal 
    agencies or their contractors.
        (b) Other than M&O contracts. Where it has been determined that a 
    contractor (other than an M&O contractor or its subcontractor) will 
    acquire information technology either for sole use by DOE employees or 
    for the furnishing of the information technology as government-
    furnished property under another contract, and after receiving written 
    authorization from their cognizant DOE contracting office pursuant to 
    48 CFR part 51, DOE contractors working under cost-reimbursement-type 
    contracts may place orders against authorized contracts. All 
    authorizations to contractors shall expressly and specifically 
    reference the restriction regarding contractor use of the items 
    acquired, cited at 48 CFR 951.102(e)(4)(iii).
        (c) Consolidated contractor acquisitions. When common information 
    technology requirements in support of DOE programs have been identified 
    and it is anticipated that the consolidation of such requirements will 
    promote cost or other efficiencies, the Designated Senior Official for 
    Information Management may authorize an M&O contractor to acquire 
    information technology for use by the following:
        (1) One or more other contractor(s) performing on-site at the same 
    DOE-owned or -leased facility as the M&O contractor, or
        (2) Other M&O contractors.
    
    PART 944--[REMOVED]
    
        17. Part 944 in Subchapter G is removed.
    
    PART 970--DOE MANAGEMENT AND OPERATING CONTRACTS
    
        18. The authority citation for Part 970 continues to read as 
    follows:
    
        Authority: Sec. 161 of the Atomic Energy Act of 1954 (42 U.S.C. 
    2201), sec. 644 of the Department of Energy Organization Act, Public 
    Law 95-91 (42 U.S.C. 7254).
    
        19. Subsection 970.1508-1 is revised to read as follows:
    
    
    970.1508-1   Cost or pricing data.
    
        (a) The certification requirements of FAR 15.804-2 are not applied 
    to DOE cost-reimbursement management and operating contracts.
        (b) The contracting officer shall ensure that management and 
    operating contractors and their subcontractors obtain cost or pricing 
    data prior to the award of a negotiated subcontract or modification of 
    a subcontract in accordance with 48 CFR 15.804-2, and incorporate 
    appropriate contract provisions similar to those set forth at 48 CFR 
    52.215-22 and 48 CFR 52.215-23 that provide for the reduction of a 
    negotiated subcontract price by any significant amount that the 
    subcontract price was increased because of the submission of defective 
    cost or pricing data by a subcontractor at any tier.
        (c) The clauses at 48 CFR 52.215-24 and 48 CFR 52.215-25 shall be 
    included in management and operating contracts.
        20. Subsection 970.5204-22 is amended by revising the clause date 
    and paragraphs (a) and (b) to read as follows:
    
    
    970.5204-22   Contractor purchasing system.
    
    * * * * *
    
    Contractor Purchasing System (NOV 1997)
    
        (a) General. The contractor shall develop, implement, and 
    maintain formal policies, practices, and procedures to be used in 
    the award of subcontracts consistent with this clause, 48 CFR (DEAR) 
    970.5204-44, and 48 CFR (DEAR) 970.71. The contractor's purchasing 
    system and methods shall be fully documented, consistently applied, 
    and acceptable to DOE in accordance with 48 CFR (DEAR) 970.7102. The 
    contractor shall maintain file documentation which is appropriate to 
    the value of the purchase and is adequate to establish the propriety 
    of the transaction and the price paid. The contractor's purchasing 
    performance will be evaluated against such performance criteria and 
    measures as may be set forth elsewhere in this contract. DOE 
    reserves the right at any time to require that the contractor submit 
    for approval any or all purchases under this contract. The 
    contractor shall not purchase any item or service the purchase of 
    which is expressly prohibited by the written direction of DOE and 
    shall use such special and directed sources as may be expressly 
    required by the DOE contracting officer. The contractor shall manage 
    a Self-Assessment Program and shall submit to the contracting 
    officer a copy of Self-Assessment reports in accordance with written 
    direction and guidance provided by the contracting officer. DOE 
    reserves the right to review and approve the contractor's purchasing 
    system in accordance with 48 CFR subpart 44.3, and DOE implementing 
    policy and guidance. The contractor's approved purchasing system and 
    methods shall include the requirements set forth in paragraphs (b) 
    through (w) of this clause.
        (b) Acquisition of utility services. Utility services shall be 
    acquired in accordance with the requirements of 48 CFR 970.41.
    * * * * *
    
    
    970.5204-24   [Removed and Reserved]
    
        21. Subsection 970.5204-24 in Subchapter I is removed and reserved.
    
    [[Page 53759]]
    
        22. Subsection 970.5204-44 is amended by revising paragraph (b)(5) 
    to read as follows:
    
    
    970.5204-44   Flowdown of contract requirements to subcontracts.
    
    * * * * *
        (b) * * *
        (5) Cost or Pricing Data. Clauses prescribed at 48 CFR (DEAR) 
    970.1508-1, and appropriate contract provisions similar to those set 
    forth at 48 CFR 52.215-22 and 48 CFR 52.215-23, that provide for the 
    reduction of a negotiated subcontract price by any significant 
    amount that the subcontract price was increased because of the 
    submission of defective cost or pricing data by a subcontractor at 
    any tier.
    * * * * *
        23. Subsection 970.5204-60 is amended by revising the clause date 
    and paragraphs (a), (b) and (c) to read as follows:
    
    
    970.5204-60   Facilities management.
    
    * * * * *
    FACILITIES MANAGEMENT (NOV 1997)
    * * * * *
        (a) Site development planning. The Government shall provide to 
    the contractor site development guidance for the facilities and 
    lands for which the contractor is responsible under the terms and 
    conditions of this contract. Based upon this guidance, the 
    contractor shall prepare, and maintain through annual updates, a 
    Long-Range Site Development Plan (Plan) to reflect those actions 
    necessary to keep the development of these facilities current with 
    the needs of the Government and allow the contractor to successfully 
    accomplish the work required under this contract. In developing this 
    Plan, the contractor shall follow the procedural guidance set forth 
    in the applicable DOE Directives in the Life Cycle Facility 
    Operations Series listed elsewhere in this contract. The contractor 
    shall use the Plan to manage and control the development of 
    facilities and lands. All plans and revisions shall be approved by 
    the Government.
        (b) General design criteria. The general design criteria which 
    shall be utilized by the contractor in managing the site for which 
    it is responsible under this contract are those specified in the 
    applicable DOE Directives in the 6430, Design Criteria, series 
    listed elsewhere in this contract. The contractor shall comply with 
    these mandatory, minimally acceptable requirements for all facility 
    designs with regard to any building acquisition, new facility, 
    facility addition or alteration or facility lease undertaken as part 
    of the site development activities of paragraph (a) above. This 
    includes on-site constructed buildings, pre-engineered buildings, 
    plan-fabricated modular buildings, and temporary facilities. For 
    existing facilities, original design criteria apply to the structure 
    in general; however, additions or modifications shall comply with 
    this directive and the associated latest editions of the references 
    therein. An exception may be granted for off-site office space being 
    leased by the contractor on a temporary basis.
        (c) Energy management. The contractor shall manage the 
    facilities for which it is responsible under the terms and 
    conditions of this contract in an energy efficient manner in 
    accordance with the applicable DOE Directives in the Life Cycle 
    Facility Operations Series listed elsewhere in this contract. The 
    contractor shall develop a 10-year energy management plan for each 
    site with annual reviews and revisions. The contractor shall submit 
    an annual report on progress toward achieving the goals of the 10-
    year plan for each individual site, and an energy conservation 
    analysis report for each new building or building addition project. 
    Any acquisition of utility services by the contractor shall be 
    conducted in accordance with 48 CFR 970.41.
    * * * * *
    [FR Doc. 97-27422 Filed 10-15-97; 8:45 am]
    BILLING CODE 6450-01-P
    
    
    

Document Information

Effective Date:
11/17/1997
Published:
10/16/1997
Department:
Energy Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-27422
Dates:
This final rule is effective November 17, 1997.
Pages:
53754-53759 (6 pages)
RINs:
1991-AB35: DEAR: Implementation of FASA and FARA Statutes
RIN Links:
https://www.federalregister.gov/regulations/1991-AB35/dear-implementation-of-fasa-and-fara-statutes
PDF File:
97-27422.pdf
CFR: (4)
48 CFR 912.302
48 CFR 939.7000
48 CFR 939.7001
48 CFR 939.7002