![](media/image1.wmf) **Department of Energy No.**
[**AL-2007-01**]{.underline}

**Acquisition Regulation Date** [**12/15/06**]{.underline}

**ACQUISITION LETTER**

This Acquisition Letter is issued by the Procurement Executive of DOE.

**Subject: Implementation of Functional Accountability Requirements**

**References: Secretary of Energy Memorandum dated May 23, 2006,**

**Functional Accountability**

**When is this Acquisition Letter (AL) Effective?**

This AL, which includes the attached OPAM Implementation Plan and DOE
Corporate Implementation Plan, are effective immediately.

**When does this AL Expire?**

This AL remains in effect until superseded or canceled and is subject to
change as needed.

**Who is the Point of Contact?**

Contact Cynthia Yee, Director, Acquisition Career Development Program,
Office of Procurement and Assistance Policy, MA-61, at (202) 287-1666 or
by email at [Cynthia.Yee@hq.doe.gov](mailto:Cynthia.yee@hq.doe.gov) .

Visit our website at [www.pr.doe.gov]{.underline} for additional
information on Acquisition Letters and other policy issues.

**What is the Purpose of this Acquisition Letter?**

This Acquisition Letter (AL) implements Secretary of Energy Memorandum
dated May 23, 2006, SUBJECT: Functional Accountability.

**Applicability:**

This AL does not apply to the National Nuclear Security Administration
(NNSA).

**What is the Background?**

By the referenced Memorandum, the Secretary of Energy directed the
implementation of functional accountability across the Department of
Energy. The functional heads were identified as the Chief Financial
Officer, Chief Human Capital Officer, Chief Information Officer, General
Counsel, Senior Procurement Executive (SPE) and Director of the Office
of Public Affairs. The Secretary expressly gave those functional heads
the ability to exercise certain line authorities within their functions.
These authorities include:

1\) Concurrence with existing management on the establishment of
positions, including grade level, appointment type, and scope of duties;

2\) Concurrence in the selection of new hires;

3\) Concurrence on reorganizations and requests for workforce shaping
authorities such as the Voluntary Separation Incentive Program,
Voluntary Early Retirement Authority, and reduction in force impacting
or affecting the function;

4\) Concurrence on compensation, performance recognition, and retention,
recruitment and relocation matters;

5\) Active participation in performance management, including the
development of per- formance standards, concurrence on performance
ratings of record, and consultation and coordination on disciplinary
actions;

6\) Active participation in employee development, including the ability
to require that incumbents have certain specified core competencies and
the ability to require certain training; and

7\) Active participation, through the Corporate Program Review process,
with respect to budgets for the respective functional activities.

The memorandum qualifying these authorities apply only to the highest
ranking functional official in the field or Headquarters office who is
not already an employee of the functional head's organization or program
office.

To implement the Secretary's mandate, a Functional Accountability
Working Group, chaired by the Chief Human Capital Officer, was
established.

-   Each Functional Head developed an implementation plan.

-   The OPAM Implementation Plan for functional accountability was
    coordinated with field Procurement Directors during the development
    stage and with senior DOE management through the Functional
    Accountability Working Group.

-   Only the elements of selection and performance management lack
    formal institutionalization, which is provided in the attached
    Implementation Plan.

**What is the Guidance?**

Contracting officers and other members of the acquisition community
should be aware of DOE's Procurement Functional Accountability Plan.
This Plan and the DOE Corporate Implementation Plan are attached and
consist of the following:

-   Reliance on existing authorities, including delegations to HCAs and
    Contracting Officers

-   SPE authority to concur on selections and performance ratings of
    record for Heads of Contracting Activities (HCA), Procurement
    Directors or functionally equivalent positions, contractor human
    resource/industrial relations managers or functionally equivalent
    positions, and organization property management officers (OPMO) or
    functionally equivalent positions at field offices\*

> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> \* Authorities are limited to only the highest ranking functional
> official in the field or Headquarters office who is not already a
> direct report of the SPE.