# Presentation: 674385

## High Risk Personal Property

- 2002 Export Control Coordinator’s Annual Meeting
- June 5, 2002
- Faye Zimmerman
- Personal Property Management Division
- Office of Procurement and Assistance Management
- Headquarters, Department of Energy
- _[faye.zimmerman@hq.doe.gov](mailto:faye.zimmerman@hq.doe.gov)__                                                       202-586-4887_

**Notes:**

Good Afternoon – My name is Faye Zimmerman.  I work in the Personal Property Management Division at DOE Headquarters.  

Before I begin, let me start out by saying that everything in my presentation applies to DOE and NNSA.  My references to DOE are inclusive of the NNSA organization.

## High Risk Personal Property

- Current High Risk (HR) Guidance
- Department of Energy Property Management   Regulations (DOE-PMRs)
- DOE 109-1.100.51
- DOE 109-1.53
- DOE 109-1.42
- DOE 109-1.43
- DOE 109-1.45
- Personal Property Letter (PPL) 970-3, Revision 1
- Executive Order 13148

**Notes:**
The Regulations and guidance are in place to protect against the premature or unintentional sale, transfer, loan or release of high risk
property.  The goal is to have a comprehensive and sound national policy to preclude the release of equipment or materials that could have an adverse impact on national security, the environment, or public health and safety.

FYI for me -- EO 13148 – Greening the Government Through Leadership in Environmental Management (Ozone-Depleting Substances)

## High Risk Personal Property

- Changes to High Risk Guidance
- PPL 970-3, Revision 2
- Personal Property Management Guide
- End-Use Certificate

**Notes:**
PPL 970-3, Rev. 2 – Some say it will never happen – That’s right!  Revision 2 will not be issued.

The provisions of PPL 970-3, Rev. 2, will be incorporated into the new Personal Property Management Directive, along with the provisions of DOE-PMR 109.  (FYI for me – DOE Order will provide requirements and Guide will provide information on how to implement the requirements.)

When will the Guide be out?  Well the Guide is basically Rich LaRoche’s Retirement Project, and he’s leaving soon.  In reality, Rich is checking on the current process for coordination and it is expected that it will be out of our office this month (June).

One significant change to the current regulation is the incorporation of an End-Use Certificate.  The End-Use Certificate is a new form that will be used when selling or transferring high risk property to anyone other than federal agencies.  The form has been approved by the General Council and was published in the Federal Register about 2 weeks ago.

     (FYI for me – Published May 23    --  Volume 67, #100   -- Comments due July 22)   

## High Risk Personal Property

- A Little History
- Prior to 1994 – No Guidance
- August 1994 – The Idaho Incident
- September 1998 – The Sandia Incident
- Other Incidents

**Notes:**
1.  Aug. 1994 – The Idaho Incident (Sale of what appeared to be scrap metal, but was actually components for a Nuclear Fuel Reprocessor)
	-Very costly for DOE (reputation and $)
	-As a result of this incident, PPL 970-3 was issued.  It provided:
	  *Interim guidelines for managing 10 categories of HR property
	  *Gave Heads of FOs the flexibility in implementing life cycle controls
	  *Implementation of the Export Restriction Notice on all transfers and sales.
	-Feburary 1998, PPL 970-3, was revised (Revision 1)
	-Reduced High Risk Categories covered by the PPL from 10 to 4
	  *Especially Designated or Prepared Property
	  *Export Controlled Property
	  *Proliferation-Sensitive Property 
	  *Nuclear Weapon/Weapon-Like Components
	 -Remaining 6 items excluded because they were subject to other
	  life cycle management approaches
2.  Sept. 1998 – The Sandia Incident (Paragon Computer, a High Performance Computer, was sold)
Other incidents include:
	*Donation of armored personnel carriers to a private museum
	*Sale of surplus lathe contaminated with uranium
	*Sale of unsanitized surplus computers
	*Improper Exchange/Sale and donation of firearms	   			

## High Risk Personal Property

- Subsequent Policy Formulations
- Draft PPL 970-3, Revision 2
- Personal Property Management Guide

**Notes:**
-Draft PPL 970-3, Rev 2 increases HR Property categories to 5

-Provides guidance for handling Automatic Data Processing equipment (ADPE), which is also referred to a Information Technology, or IT, equipment

-As of January 2002, a decision was made to incorporate PPL 970-3 into the Personal Property Management Directive, which will consist of a DOE Order and Guide.

Personal Property Management Directive
-In keeping with the DOE Directives System, a Policy Document, an Order, and a Guide will be issued.
-Watch for information under the DOE Directive Series 580
-The Order will include requirements of Draft PPL 970-3, Revision 2
-Guide will incorporate more detailed definitions and work-level information.

## High Risk Personal PropertyChanges to High Risk Procedures

**CURRENT**
- HR Procedures apply to four of the ten HR categories**	****	**

**PROPOSED**
- Fifth category to be added

**Notes:**
Current
Remaining six categories subject to other life cycle management controls

Proposed
Including another category raises the High Risk Categories covered by the HR Procedures found in the Guide to five.

## High Risk Personal PropertyChanges to High Risk Procedures

**CURRENT**
- Categories subject to provisions of PPL
- Export Controlled Property
- Especially Designed or Prepared Property
- Proliferation-Sensitive Property
- Nuclear Weapon/ Weapon-Like Components

**PROPOSED**
- New Category
- Information Technology Equipment (IT) (formally ADPE)

**Notes:**
Slide says it all.

(FYI my note) - Current
Other 6 categories include:
Special Nuclear Material
Unclassified Controlled Nuclear Information
Hazardous Property
Radioactive Property
Export Controlled Information
Automatic Data Processing Equipment

Proposed
Information Technology Equipment (IT/ADPE) which meets specific criteria will move from the list of equipment that is currently managed  by other life cycle management controls to the list of categories managed under the guidelines of the Property Management Directives.

## High Risk Personal PropertyChanges to High Risk Procedures

**CURRENT**
- Guidance on specific handling of ADPE (IT) not addressed

**PROPOSED**
- IT requires HR controls when it meets any one or more of these conditions:
- Processed classified information, unclassified controlled nuclear information, or export controlled information
- Cannot be certified as sanitized
- Categorized as a “high performance” computer

**Notes:**
Slide says it all. (Read slide)

IT Equipment -  Computers which fall into the category of equipment that requires High Risk reviews is a computer, or series of computers categorized by the Department of Commerce as a “High Performance Computer” or “general purpose computer” that has a composite exceeding 85,000 MTOPS (Million Theoretical Operations Per Second).    
    (FYI my note – 85,000 MTOPS is Firm at this time) (HOPF’s decision)

## High Risk Personal PropertyChanges to High Risk Procedures

**CURRENT**
- No formal certification form is currently referenced

**PROPOSED**
- End-Use Certificate required when HR property is sold or transferred to any end-user other than a Department or Agency of the Federal Government

**Notes:**
Proposed –
The purpose of the form;
	*to clear respondents and their businesses to acquire High Risk
	  property being released from DOE control;
	*to check respondents to determine if they are responsible, not 
	  debarred bidders, specially designated nationals or blocked 
	  persons;
	  or have not violated U.S. export laws; and
	*to advise recipients that when or if  property is exported, they 
	  must comply with appropriate laws and regulations.

Approvals for EUC – Starts with the Organizational Property Management 
Officer or their designee.

All transfers/sales of IT equipment will also be approved by the DOE Property
Executive.

For Information Technology Equipment and items on the Nuclear Suppliers Group (NSG) Trigger/Dual Use List or Munitions List, the Office of Export Control Policy and Cooperation will review the completed form and forward it to NA-1 for approval prior to release of the property.  

## High Risk Personal PropertyEffects of September 11, 2001

- In particular, no regulations have been put into place with regard to the 9/11 tragedies
- Security heightened at DOE sites
- Property disposal awareness has been raised
- End-Use Certificate

**Notes:**
End Use Certificate, referenced in the Personal Property Management Guide, and part of the handout,  will:

Suggest a more stringent review of recipients receiving property categorized as High Risk. (Faye check to see if in Order – so it is not a suggestion)
2.Alert recipients of surplus High Risk property of the applicable laws and regulations concerning export controls.
3.Document the recipient’s understanding of procedures to be followed when receiving or transferring property categorized as High Risk.