[Federal Register Volume 76, Number 43 (Friday, March 4, 2011)]
[Proposed Rules]
[Pages 11985-11992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4350]


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DEPARTMENT OF ENERGY

48 CFR Parts 908, 945, and 970

RIN 1991-AB86


Acquisition Regulation: Department of Energy Acquisition 
Regulation, Government Property

AGENCY: Department of Energy.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department of Energy (DOE) is proposing to amend the 
Department of Energy Acquisition Regulation (DEAR) to conform to the 
Federal Acquisition Regulation (FAR), remove out-of date government 
property coverage, and update references. This proposed rule does not 
alter substantive rights or obligations under current law.

DATES: Written comments on the proposed rulemaking must be received on 
or before close of business April 4, 2011.

ADDRESSES: This proposed rule is available and you may submit comments, 
identified by DEAR: parts 908, 945 and 970 and RIN 1991-AB86, by any of 
the following methods: Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
    E-mail to: <a href="/cdn-cgi/l/email-protection#1c58595d4e6e697079717d7775727b5c746d32787379327b736a717d75706873"><span class="__cf_email__" data-cfemail="94d0d1d5c6e6e1f8f1f9f5fffdfaf3d4fce5baf0fbf1baf3fbe2f9f5fdf8e0fb">[email protected]</span></a>:. Include DEAR: parts 
908 and 945 and RIN 1991-AB86 in the subject line of the message.
    Mail to: U.S. Department of Energy, Office of Resource Management, 
MA-632, 1000 Independence Avenue, SW.,

[[Page 11986]]

Washington, DC 20585. Comments by e-mail are encouraged.

FOR FURTHER INFORMATION CONTACT: Helene Abbott at (202) 287-1593 or via 
e-mail: <a href="/cdn-cgi/l/email-protection#a6cec3cac3c8c388c7c4c4c9d2d2e6ced788c2c9c388c1c9d0"><span class="__cf_email__" data-cfemail="9af2fff6fff4ffb4fbf8f8f5eeeedaf2ebb4fef5ffb4fdf5ec">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:
Background
Section-by-Section Analysis
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 13132
    G. Review Under the Unfunded Mandates Reform Act of 1995
    H. Review Under the Treasury and General Government 
Appropriations Act, 1999
    I. Review Under Executive Order 13211
    J. Review Under the Treasury and General Government 
Appropriations Act, 2001
    K. Approval by the Office of the Secretary of Energy

I. Background

    DOE is proposing to amend parts 908, Required Sources of Supplies 
and Services, 945, Government Property, and related 970, Management and 
Operating Contracts, to remove out-of-date coverage, to update 
references and to conform to the FAR.
    Part 945 is amended to conform to FAR Part 45, Government Property. 
On May 15, 2007 (72 FR 27364), in the Federal Acquisition Circular 
(FAC) 2005-17, FAR Part 45 was amended to simplify procedures, clarify 
language, and eliminate out-of-date requirements related to the 
management and disposition of Government property in the possession of 
contractors by establishing a life-cycle approach to property 
management and sanctioning the use of consensus standards or industry-
leading standards and practices for property management. The FAC 
deleted outdated clauses and combined selected FAR property clauses 
into a single clause. This proposed rule updates corresponding DEAR 
sections to conform to the FAR and other federal agencies' procedures. 
None of these changes are substantive or of a nature to cause any 
significant expense for DOE or its contractors.

II. Section-by-Section Analysis

    DOE proposes to amend the DEAR as follows:
    1. Section 908.1102 is amended by redesignating paragraph (a)(4) as 
908.1102-70 Vehicle leasing to conform to the FAR convention, and 
adding the phrase ``All subsequent lease renewals or extensions may be 
exercised only when General Service Administration (GSA) has advised 
that it cannot furnish the vehicle(s) as prescribed herein.''
    2. Section 908.1104(f) is amended by removing ``Federal Property 
Management Regulation (FPMR) 41 CFR 101-38.6.'' and adding in its place 
``Federal Management Regulation (FMR) 41 Code of Federal Regulation 
(CFR) 102-34.160, 102-34.175 and 102-34.80'' to provide the updated 
citation.
    3. Section 908.7101-2(a) is amended by removing ``FPMR 41 CFR 101-
25.304, 101-26.501, and 101-38.13 and DOE-PMR 41 CFR 109-25.304, 109-
38.13, and 109-38.51'' and adding in its place ``Federal Property 
Management Regulations (FPMR) 41 CFR 101-26.501, and FMR 41 CFR 102-34, 
and Department of Energy-Property Management Regulations (DOE-PMR) 41 
CFR 109-26.501'' to provide the updated citation.
    4. Section 908.7101-2 paragraph (b) is amended by removing ``on GSA 
Form 1781, Motor Vehicle Requisition--Delivery Order--Invoice,'' and 
adding in its place ``utilizing GSA's on-line system (Auto Choice)'' to 
update the procedures.
    5. Section 908.7101-3 is amended by removing ``those'' in the third 
sentence and removing in the last sentence, ``(See DOE-PMR 41 CFR 109-
38.5102-4)'' to correct grammar and to remove an out-of-date citation.
    6. Section 908.7101-4 is amended in paragraph (a) by removing 
``FMPR 101-38.9 and DOE-PMR 41 CFR 109-38.9'' and adding in its place 
``FMR 102-34.270'' to update the citation.
    7. Section 908.7101-5 is amended in the third sentence by removing 
``38.5102'' and adding in its place ``26.501-50 and 109-26.501-51,'' to 
update the citation.
    8. Section 908.7101-6 is amended in paragraph (a) by removing the 
last three sentences and adding in their place ``Such forecast shall be 
submitted to the Property Executive, or designee, when requested.
    9. Section 908.7101-6 is amended in paragraph (b) by removing 
``Sedans, station wagons, and light trucks requisitioned according to 
an approved forecast, but not contracted for by GSA until the 
subsequent fiscal year, will'' and adding in its place ``Approved 
sedans, station wagons, and light trucks requisitioned, but not 
contracted for by GSA until the subsequent fiscal year, shall'' to 
update the procedures.
    10. Section 908.7101-7 is amended in paragraph (a) by removing 
``101-38.303'' and adding in its place ``102-34.140'' to update the 
citation.
    11. Section 908.7101-7 is amended in paragraph (b) by removing in 
the second sentence the ``,'' after records; removing in the second 
sentence the ``Director, Office of Property Management,'' and adding in 
its place ``Director, Personal Property Management Division,'' to 
correct grammar and update office names.
    12. Section 908.7101-7 is amended in paragraph (e) by removing the 
sentence and adding in its place ``See DOE-PMR 41 CFR 109-38.202-2 and 
109-38.202-3 for additional guidance.'' to update the citation.
    13. Section 908.7102 is amended by removing the sentence and adding 
in its place ``Acquisition of aircraft shall be in accordance with FMR 
41 CFR 102-33, subpart B and DOE Order 440.2B latest revision.'' to 
update the citation.
    14. Section 908.7103 is amended by removing ``FPMR 41 CFR 101-
25.104, 101-25.302, 101-25.302-3, 101-25.302-4, and 101-25.302-6, and 
101-25.403, and DOE-PMR 41 CFR 109-25.302, 109-25.302-3, and 109-25.4'' 
and by adding in its place ``FPMR 41 CFR 101-25.104, 101-25.302, and 
DOE-PMR 41 CFR 109-25.302, and 109-25.4'' to update the citations.
    15. Section 908.7104 is amended by removing ``FPMR 41 CFR 101-
25.104, 101-25.302, 101-25.302-1, 101-25.302-5, 101-25.302-7, and 101-
25.302-8, 101-25.404 and 101-26.505, and DOE-PMR 41 CFR 109-25.302, 
109-25.302-1, and 109-25.350'' and adding in its place ``FPMR 41 CFR 
101-25.104, 101-25.302, 101-25.302-5, 101-25.302-7, 101-25.404 and 101-
26.505, and DOE-PMR 41 CFR 109-25.302, and 109-25.350'' to update the 
citations.
    16. Section 908.7121 is revised to update the first paragraph to 
clarify that the contracting officers shall require authorized 
contractors to follow procedures set forth in paragraphs (a) through 
(c).
    17. Section 908.7121(b) Precious metals is revised to update the 
responsible office in subparagraph (1) and add subparagraph (2) to 
reference 945.604-1 for contractor identification and reporting for 
contractor inventory containing precious metals or possessing precious 
metals excess.
    18. Section 908.7121(c) is amended to state that lithium is 
available from The National Nuclear Security Administration (NNSA), Y-
12 National Security Complex in Oak Ridge, TN (Y-12) and that the 
excess quantities at Y-12 are to be the first source of supply.
    19. Part 945 is amended to simplify procedures, clarify language, 
and eliminate obsolete requirements related to the management and 
disposition of Government property in the possession of contractors to 
conform to FAR Part 45 Government Property regulation.

[[Page 11987]]

    20. Section 945.000 is amended by lower casing the first letter of 
the word ``part''; by reversing ``operating and management'' to read 
``management and operating''; and by removing the second sentence in 
its entirety.
    21. Section 945.101 is amended by removing the definition of 
capital equipment; and adding a definition of sensitive property. For 
clarity, since the FAR definition of sensitive property was changed 
under FAC 2005-17 and for further emphasis by DOE, the FAR definition 
is incorporated by reference.
    22. Section 945.102-70 is revised in the first paragraph, first 
sentence, by removing ``Within 30 days after the end of each fiscal 
year,'' and adding in its place ``The below listed information may be 
required to be reported from time to time to''; and by removing 
``Director, Office of Property Management,'' and adding in its place 
``Personal Property Management Division''; in paragraph (e), by 
removing ``dollar'' and adding in its place ``acquisition''; and in 
paragraph (e), by removing ``as reported on last semiannual asset 
report (including date of report),''. These changes correct the 
reporting process and provide the correct title of the receiving 
activity. Changes pertain to the Property Information Database System 
(PIDS) which was created by the Idaho National Lab and has been in use 
since the late 1990s. The PIDS system is used by both DOE and 
Contractors alike.
    23. Subpart 945.1 is revised to add the new section ``945.102-72 
Reporting of contractor sensitive property inventory'' to reflect the 
current sensitive property policy.
    24. Section 945.3 is amended by redesignating subpart 945.3 and 
section 945.303-1 as section 945.170 and section 945.170-1, 
respectively, and by reserving section 945.3 and by using lower case 
letters for ``property'' and ``contractors'' in the section 945.170 
title, and by adding a period at the end of ``contractors''. These 
changes are made to conform to the FAR.
    25. Subpart 945.4 is amended by removing and reserving this subpart 
in its entirety to conform to the FAR.
    26. Section 945.5 title is amended by removing ``Management of 
Government Property in the Possession of Contractors'' and adding in 
its place ``Support Government Property Administration'' to conform to 
the FAR.
    27. Section 945.505-11 is removed in its entirety to conform to the 
FAR.
    28. Subpart 945.5 is revised by changing its title to ``945.570 
Management of Government property in the possession of contractors'' to 
conform to the FAR.
    29. Section 945.506 is removed in its entirety.
    30. Section 945.570-2 is redesignated as 945.570-1 and is amended 
at paragraph (c) the second sentence by removing ``(GSA Form 1781)'', 
and adding ``via GSA Autochoice'' after ``should be processed''. The 
replaced information updates the DEAR to conform to GSA's current 
procedures.
    31. Redesignated 945.570-1(f) is amended by removing ``Motor 
Vehicle Rental'' and adding in its place ``Leasing of Automobiles and 
Light Trucks''.
    32. Section 945.570-7 is redesignated as 945.570-2.
    33. Section 945.570-8 is redesignated as 945.570-3 and is revised 
in section (a) in the first sentence, by removing ``(on or before 
December 1)''.
    34. Redesignated 945.570-3(b) is amended after ``DOE-owned'' by 
adding ``, GSA leased''; before ``and/or'' and by adding 
``electronically'' before ``submit''.
    35. Redesignated 945.570-3(b)(1) is amended by removing ``DOE 
Report of Motor Vehicle Data (passenger vehicles)'' and adding in its 
place ``Annual Motor Vehicle Fleet Report''.
    36. Redesignated section 945.570- 3(b)(2) is amended by removing 
``DOE Report of Truck Data'' and adding in its place ``Federal Fleet 
Report (41 CFR 102-34.335)''.
    37. Subpart 945.6 is amended by removing the subpart title 
``Reporting, Redistribution, and Disposal of Contractor Inventory'' and 
adding in its place ``Reporting, Reutilization, and Disposal''.
    38. Subpart 945.6 is amended by adding a new section ``945.602 
Reutilization of Government property.''
    39. Subpart 945.6 is amended by adding a new section ``945.602-70 
Local screening''.
    40. Section 945.603 is redesignated as 945.670, DOE disposal 
methods.
    41. Section 945.603-70 is amended by redesignating this section as 
``945.670-1''; and removing ``FAR Subpart 45.6'' and adding in its 
place ``48 CFR 45.606-3''. This amendment is to conform the DEAR to the 
FAR.
    42. Section 945.603-71 is redesignated as ``945.670-2''.''
    43. Subpart 945.6 is amended by adding a new section 945.603 
Abandonment, destruction or donation of excess personal property which 
refers to 945.670 for disposal methods. These changes are made to 
conform to the FAR and move current DEAR information to a new section.
    44. Subpart 945.6 is revised by adding a new section 945.604 
Disposal of surplus property to conform to the FAR.
    45. Section 945.607-2(b) is redesignated as 945.604-1 Recovering 
precious metals. The office name and address are updated. Paragraph (d) 
references 945.670 for DOE disposal methods. By adding the other 
precious metals, we are aligning the DEAR to FAR 46.101.
    47. Section 945.608-2 is redesignated as ``945.602-3(a)'' and is 
amended by removing subparagraph (b)(1) in its entirety and adding in 
its place ``(a) Standard screening. (1) Prior to reporting excess 
property to GSA, all reportable property, as identified in Federal 
Management Regulation 41 CFR 102-36.220, shall be reported for 
centralized screening in the DOE Energy Asset Disposal System (EADS). 
Reportable excess personal property will be screened internally via the 
EADS system for a period of 15 days.'' These changes are made to update 
the DEAR to the current on-line reporting.
    50. Redesignated section 945.602-3(a)(1)(i) [previously 945.608-
2(b)(1)] is amended by in the first sentence, by removing ``REAPS'' and 
adding in its place ``EADS''; in the first sentence, by removing 
``address code'' and adding in its place ``Activity Address Code 
(AAC)''; by removing the second sentence in its entirety and adding in 
its place ``The AAC will be assigned by DOE Headquarters upon receipt 
of a formal letter of authorization signed by the DOE contracting 
officer,'', and by removing the third sentence in its entirety. These 
changes are made to update the current procedure.
    51. Redesignated section 945.602-3(a)(1)(ii) is amended by removing 
the sentence in its entirety and adding a new sentence to indicate that 
any changes to an Activity Address code shall be submitted to the 
Office of Procurement and Assistance Management, Personal Property 
Management Division, within the Headquarters procurement organization.
    52. The section designated as 945.608-3 is removed. Section 
945.602-70 Local screening provides the correct process and title for 
property screening and disposal.
    53. The section designated as 945.608-4 is removed.
    54. Section 945.608-5 is redesignated as 945.602-3(b)(2) and is 
amended in the first paragraph, by adding ``(b) Special screening 
requirements. (2) Special test equipment with commercial components--'' 
prior to the redesignated text.
    55. Section 945.608-5(c) is redesignated as 945.602-3(b)(3).
    56. Section 945.608-6 is redesignated as 945.670-3; and is amended 
in paragraph (a) after requirements, by removing ``in accordance with 
the provisions of FAR 45.608-6.''; in both

[[Page 11988]]

paragraphs, by removing ``Office of Property Management Division'' and 
adding in its place ``Personal Property Management Division''; and in 
paragraph (b) by removing ``HCA'' and adding in its place ``Procurement 
Directors''.
    57. Section 945.610-4 is redesignated as 945.671.
    58. Section 970.5244-1(k) is amended by removing the paragraph in 
its entirety and adding in its place ``Government Property''. The 
Contractor shall establish and maintain a property management system 
that complies with criteria in 48 CFR 970.5245-1, Property, and 48 CFR 
52.245-1, Government Property.''
    59. Section 970.5244-1(q)(13) is added to correct an error in the 
DEAR Final Rule [74 FR 36376-36378, dated July 22, 2009] which omitted 
``Products made in Federal and penal and correctional institutions--41 
CFR 101-26.702.''
    60. Section 970.5245-1 is amended by removing and reserving 
paragraph (i)(1)(ii)(B). This amendment clarifies the contract 
conditions for property management systems approval.

III. 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 rule is not subject to review under that Executive 
Order by the Office of Information and Regulatory Affairs (OIRA) of the 
Office of Management and Budget (OMB).

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 United 
States 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 if 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, this rule meets the relevant standards of Executive 
Order 12988.

C. Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that 
an agency prepare an initial regulatory flexibility analysis for any 
regulation for which a general notice or proposed rulemaking is 
required, unless the agency certifies that the rule, if promulgated, 
will not have a significant economic impact on a substantial number of 
small entities (5 U.S.C. 605(b)). This rule updates references in the 
DEAR that apply to public contracts and does not impose any additional 
requirements on small businesses. This proposed rule does not alter any 
substantive rights or obligations and consequently, this proposed rule 
will not have a significant cost or administrative impact on 
contractors, including small entities.
    On the basis of the foregoing, DOE certifies that this proposed 
rule would not have a significant economic impact on a substantial 
number of small entities. Accordingly, DOE has not prepared a 
regulatory flexibility analysis for this rulemaking. DOE's 
certification and supporting statement of factual basis will be 
provided to the Chief Counsel for Advocacy of the Small Business 
Administration pursuant to 5 U.S.C. 605(b).

D. Review Under the Paperwork Reduction Act

    This proposed rule does not impose a collection of information 
requirement subject to the Paperwork Reduction Act, 44 U.S.C. 3501 et 
seq. Existing burdens associated with the collection of certain 
contractor data under the DEAR have been cleared under OMB control 
number 1910-4100.

E. Review Under the National Environmental Policy Act

    DOE has concluded that promulgation of this proposed rule falls 
into a class of actions which would not individually or cumulatively 
have significant impact on the human environment, as determined by 
DOE's regulations (10 CFR part 1021, subpart D) implementing the 
National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 4321 et 
seq.). Specifically, this proposed rule is categorically excluded from 
NEPA review because the amendments to the DEAR are strictly procedural 
(categorical exclusion A6). Therefore, this proposed rule does not 
require an environmental impact statement or an environmental 
assessment pursuant to NEPA.

F. Review Under Executive Order 13132

    Executive Order 13132, [64 FR 43255, August 4, 1999], imposes 
certain requirements on agencies formulating and implementing policies 
or regulations that preempt State law or that have federalism 
implications. Agencies are required to examine the constitutional and 
statutory authority supporting any action that would limit the 
policymaking discretion of the States and carefully assess the 
necessity for such actions. The Executive Order requires agencies to 
have an accountability process to ensure meaningful and timely input by 
state and local officials in the development of regulatory policies 
that have federalism implications. On March 14, 2000, DOE published a 
statement of policy describing the intergovernmental consultation 
process it will follow in the development of such regulations [65 FR 
13735]. DOE has examined the proposed rule and has determined that it 
does not preempt State law and does not have a substantial direct 
effect on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government. No further 
action is required by Executive Order 13132.

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 written 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 proposes changes that do not alter any 
substantive rights or obligations. This

[[Page 11989]]

proposed rule does not impose any mandates.

H. Review Under the Treasury and General Government Appropriations Act, 
1999

    Section 654 of the Treasury and General Government Appropriations 
Act, 1999 (Pub. L. 105-277), requires Federal agencies to issue a 
Family Policymaking Assessment for any rulemaking or policy that may 
affect family well-being. This rulemaking will have no impact on the 
autonomy or integrity of the family as an institution. Accordingly, DOE 
has concluded that it is not necessary to prepare a Family Policymaking 
Assessment.

I. Review Under Executive Order 13211

    Executive Order 13211, Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use, [66 FR 28355, 
May 22, 2001] requires Federal agencies to prepare and submit to Office 
of Information and Regulatory Affairs (OIRA) of the Office of 
Management and Budget, a Statement of Energy Effects for any proposed 
significant energy action. A ``significant energy action'' is defined 
as any action by an agency that promulgates or is expected to lead to 
promulgation of a final rule, and that: (1) Is a significant regulatory 
action under Executive Order 12866, or any successor order; (2) is 
likely to have a significant adverse effect on the supply, 
distribution, or use of energy, or (3) is designated by the 
Administrator of OIRA as a significant energy action. For any proposed 
significant energy action, the agency must give a detailed statement of 
any adverse effects on energy supply, distribution, or use should the 
proposal be implemented, and of reasonable alternatives to the action 
and their expected benefits on energy supply, distribution, and use. 
This proposed rule is not a significant energy action. Accordingly, DOE 
has not prepared a Statement of Energy Effects.

J. Review Under the Treasury and General Government Appropriations Act, 
2001

    The Treasury and General Government Appropriations Act, 2001 (44 
U.S.C. 3516, note) provides for agencies to review most disseminations 
of information to the public under guidelines established by each 
agency pursuant to general guidelines issued by OMB. OMB's guidelines 
were published at [67 FR 8452, February 22, 2002], and DOE's guidelines 
were published at [67 FR 62446 October 7, 2002]. DOE has reviewed the 
proposed rule under the OMB and DOE guidelines and has concluded that 
it is consistent with applicable policies in those guidelines.

K. Approval by the Office of the Secretary of Energy

    Issuance of this proposed rule has been approved by the Office of 
the Secretary of Energy.

List of Subjects in 48 CFR Parts 908, 945, and 970

    Government procurement.

    Issued in Washington, DC, on February 2, 2011.
Patrick M. Ferraro,
Acting Director, Office of Procurement and Assistance Management, 
Department of Energy .
Joseph W. Waddell,
Director, Office of Acquisition and Supply Management, National Nuclear 
Security Administration.

    For the reasons set out in the preamble, the Department of Energy 
(DOE) proposes to amend Chapter 9 of Title 48 of the Code of Federal 
Regulations as set forth below.

PART 908--REQUIRED SOURCES OF SUPPLIES AND SERVICES

    1. The authority citation for part 908 continues to read as 
follows:

    Authority: 42 U.S.C. 7101, et seq.; 50 U.S.C. 2401, et seq.

    2. Section 908.1102 is revised to read as follows:


908.1102  Presolicitation requirements.

    2a. Section 908.1102-70 is added to read as follows:


908.1102-70  Vehicle leasing.

    (a)(4) Commercial vehicle lease sources may be used only when the 
General Services Administration (GSA) has advised that it cannot 
furnish the vehicle(s) through the Interagency Motor Pool System and it 
has been determined that the vehicle(s) are not available through the 
GSA Consolidated Leasing Program. All subsequent lease renewals or 
extensions may be exercised only when GSA has advised that it cannot 
furnish the vehicle(s) as prescribed herein.


908.1104  [Amended]

    3. Section 908.1104 is amended by removing ``(FPMR) 41 CFR 101-
38.6'' in paragraph (f) and adding in its place ``Federal Management 
Regulation (FMR) 41 CFR 102-34.160, 102-34.175, and 102-34.180''.
    4. Section 908.7101-2 is amended by:
    a. Revising paragraph (a); and
    b. Removing ``on GSA Form 1781, Motor Vehicle Requisition--Delivery 
Order--Invoice,'' in paragraph (b), and adding in its place ``utilizing 
GSA's on-line system (Auto Choice)''.
    The revision reads as follows:


908.7101-2  Consolidated acquisition of new vehicles by General 
Services Administration.

    (a) New vehicles shall be procured in accordance with Federal 
Property Management Regulations (FPMR) 41 CFR 101-26.501, and FMR 41 
CFR 102-1 through 102-220, and Department of Energy-Property Management 
Regulations (DOE-PMR) 41 CFR 109-26.501.
    Orders for all motor vehicles must be placed using GSA's online 
vehicle purchasing system (AutoChoice).
* * * * *


908.7101-3  [Amended]

    5. Section 908.7101-3 is amended by removing ``those'' in the third 
sentence; and ``(See DOE-PMR 41 CFR 109-38.5102-4)'' in the last 
sentence.


908.7101-4  [Amended]

    6. Section 908.7101-4 is amended by removing ``FPMR 41 CFR 101-38.9 
and DOE-PMR 41 CFR 109-38.9.'' in paragraph (a), and adding in its 
place. ``FMR 41 CFR 102-34.270.''


908.7101-5  [Amended]

    7. Section 908.7101-5 is amended by removing ``109-38.5102,'' in 
third sentence and adding in its place ``109-26.501-50 and 109-26.501-
51,''.


908.7101-6  [Amended]

    8. Section 908.7101-6 is amended by:
    a. Removing the last three sentences in paragraph (a), and adding 
in their place ``Such forecast shall be submitted to the Property 
Executive, or designee.''; and
    b. Removing ``Sedans'' at the beginning of the first sentence of 
paragraph (b) and adding ``Approved sedans'' in its place;
    c. Removing in paragraph (b) ``according to an approved forecast'' 
and removing ``will'' and adding in its place ``shall''.


908.7101-7  [Amended]

    9. Section 908.7101-7 is amended by:
    a. Removing ``FPMR 41 CFR 101-38.303.'' in paragraph (a) and adding 
in its place ``FMR 41 CFR 102-34.140.'';
    b. Removing in paragraph (b) in the second sentence, ``records,'' 
and adding in its place ``records'';
    c. Removing in paragraph (b) ``Director, Office of Property 
Management,'' and adding in its place ``Director, Office of Personal 
Property Management Division,''; and
    d. Removing ``109-38.3 and 109-38.6'' in paragraph (e) and adding 
in its place ``109-38.202-2 and 109-38.202-3''.

[[Page 11990]]

    10. Section 908.7102 is revised to read as follows:


908.7102  Aircraft.

    Acquisition of aircraft shall be in accordance with FMR 41 CFR part 
102-33, subpart B and DOE Order 440.2B latest revision.


908.7103  [Amended]

    11. Section 908.7103 is amended by removing ``101-25.302-3, 101-
25.302-4, and 101-25.302-6, and 101-25.403,'' and ``109-25.302-3,'' and 
adding in its place ``FPMR 41 CFR 101-25.104, 101-25.302, and DOE-PMR 
41 CFR 109-25.302, and 109-25.4.''


908.7104  [Amended]

    12. Section 908.7104 is amended by removing ``FMPR 41 CFR 101-
25.104, 101-25.302, 101-25.302-1, 101-25.302-5, 101-25.302-7 and 101-
25.302-8, 101-25.404 and 101-26.505 and DOE PMR 41 CFR 109-25.302, 109-
25.302-1 and 109-25.350'' and adding in its place ``FPMR 41 CFR 101-
25.104, 101-25.302, 101-25.302-5, 101-25.302-7, 101-25.404 and 101-
26.505 and DOE-PMR 41 CFR 109-25.302 and 109-25.350.''
    13. Section 908.7121 is revised to read as follows:


908.7121  Special materials.

    This section covers the purchase of materials peculiar to the DOE 
program. While purchases of these materials may be unclassified, the 
specific quantities, destination or use may be classified (see 
appropriate sections of the Classification Guide). Contracting officers 
shall require authorized contractors to obtain the special materials 
identified in the following subsections in accordance with the 
following procedures:
    (a) Heavy water. The Senior Program Official or designee controls 
the acquisition and production of heavy water for a given program. 
Request for orders shall be placed directly with the cognizant Senior 
Program Official or designee.
    (b) Precious metals. (1) NNSA, Y-12 National Security Complex in 
Oak Ridge, TN is responsible for maintaining the DOE supply of precious 
metals. These metals are platinum, palladium, iridium, osmium, rhodium, 
ruthenium, gold and silver. The NNSA Y-12 National Security Complex has 
assigned management of these precious metals to its Management and 
Operating (M&O) contractor. DOE and NNSA offices and authorized 
contractors shall coordinate with the Y-12 M&O contractor regarding the 
availability of these metals prior to purchasing in the open market.
    (2) For contractor inventory containing precious metals or 
possessing precious metals excess, see 945.604-1 for contractor 
identification and reporting.
    (c) Lithium. Lithium is available from Y-12 at no cost other than 
normal packing, handling, and shipping charges from Oak Ridge. The 
excess quantities at Y-12 are the first source of supply prior to 
procurement of lithium compounds from any other source.
    14. Part 945 is revised to read as follows:

PART 945--GOVERNMENT PROPERTY

Sec.
945.000 Scope of part.
Subpart 945.1--General
945.101 Definitions.
945.102-70 Reporting of contractor-held property.
945.102-71 Maintenance of records.
945.102-72 Reporting of contractor sensitive property inventory.
945.170 Providing Government property to contractors.
945.170-1 Policy.
Subpart 945.3 [Reserved]
Subpart 945.4 Reserved]
Subpart 945.5--Support Government Property Administration
945.570 Management of Government property in the possession of 
contractors.
945.570-1 Acquisition of motor vehicles.
945.570-2 Disposition of motor vehicles.
945.570-3 Reporting motor vehicle data.
Subpart 945.6--Reporting, Reutilization, and Disposal
945.602 Reutilization of Government property.
945.602-3 Screening.
945.602-70 Local screening.
945.603 Abandonment, destruction or donation of excess personal 
property.
945.604 Disposal of surplus property.
945.604-1 Disposal methods.
945.670 DOE disposal methods.
945.670-1 Plant clearance function.
945.670-2 Disposal of radioactively contaminated personal property.
945.670 Waiver of screening requirements.
945.671 Contractor inventory in foreign countries.

    Authority: 42 U.S.C. 7101, et seq.; 50 U.S.C. 2401, et seq.


945.000  Scope of part.

    This part and 48 CFR part 45 are not applicable to the management 
of property by management and operating contractors, unless otherwise 
stated.

Subpart 945.1--General


945.101  Definitions.

    Personal property, as used in this part, means property of any kind 
or interest therein, except real property; records of the Federal 
Government; and nuclear and special source materials, atomic weapons, 
and by-product materials.
    Sensitive property, as used in this part, has the meaning contained 
in 48 CFR 45.101.


945.102-70  Reporting of contractor-held property.

    The information listed in this section may be required to be 
reported from time to time to the Head of the Contracting Activity 
shall report the following information to the Personal Property 
Management Division, within the Headquarters procurement organization:
    (a) Name and address of each contractor with DOE property in their 
possession, or in the possession of their subcontractors (do not 
include grantees, cooperative agreements, interagency agreements, or 
agreements with state or local governments).
    (b) Contract number of each DOE contract with Government property.
    (c) Date contractor's property management system was approved and 
by whom (DOE office, Defense Contract Management Command, or the Office 
of Naval Research).
    (d) Date of most current appraisal of contractor's property 
management system, who conducted the appraisal, and status of the 
system (satisfactory or unsatisfactory).
    (e) Total acquisition value of DOE property for each DOE contract 
administered by the contracting activity.


945.102-71  Maintenance of records.

    The contracting activity shall maintain records of approvals and 
reviews of contractors' property management systems, the dollar value 
of DOE property as reported on the most recent semiannual financial 
report, and records on property administration delegations to other 
Government agencies.


945.102-72  Reporting of contractor sensitive property inventory.

    (a) For Department of Energy (DOE) sensitive property, the 
Organizational Property Management Officer (OPMO) shall submit a 
contractor-specific list of sensitive property to the DOE Property 
Executive, Office of Resource Management, or designee, by October 31st 
of each year for review and approval. The DOE Property Executive or 
designee will provide the approved contractor-specific list to the 
appropriate Contracting Officer and OPMO.
    (b) For National Nuclear Security Administration (NNSA) sensitive 
property, the OPMO shall submit a contractor-specific list of sensitive

[[Page 11991]]

property to the Director NNSA, Office of Acquisition and Supply 
Management, or designee, by October 31st of each year for review and 
approval. The Director, NNSA or designee, will provide the approved 
contractor-specific list to the appropriate Contracting Officer and 
OPMO.


945.170  Providing Government property to contractors.


945.170-1  Policy.

    The DOE has established specific policies concerning special 
nuclear material requirements needed under DOE contracts for 
fabricating end items using special nuclear material, and for 
conversion or scrap recovery of special nuclear material. Special 
nuclear material means uranium enriched in the isotopes U233 or U235, 
and/or plutonium, other than PU238. The policies to be followed are:
    (a) Special nuclear material will be furnished by the DOE for 
fixed-price contracts and subcontracts, at any tier, which call for the 
production of special nuclear products, including fabrication and 
conversion, for Government use. (The contractor or subcontractor must 
have the appropriate license or licenses to receive the special nuclear 
material. The Nuclear Regulatory Commission is the licensing agency.)
    (b) Contracts and subcontracts for fabrication of end items using 
special nuclear material generally shall be of the fixed-price type. 
Cost-type contracts or subcontracts for fabrication shall be used only 
with the approval of the Head of the Contracting Activity. This 
approval authority shall not be further delegated.
    (c) Contracts and subcontracts for conversion or scrap recovery of 
special nuclear material shall be of a fixed-price type, except as 
otherwise approved by the Head of the Contracting Activity.

Subpart 945.3 [Reserved]

Subpart 945.4 [Reserved]

Subpart 945.5--Support Government Property Administration


945.570   Management of Government property in the possession of 
contractors.


945.570-1   Acquisition of motor vehicles.

    (a) GSA Interagency Fleet Management System (GSA-IFMS) is the first 
source of supply for providing motor vehicles to contractors; however, 
contracting officer approval is required for contractors to utilize 
this service.
    (b) Prior approval of GSA must be obtained before--
    (1) Fixed-price contractors can use the GSA-IFMS;
    (2) DOE-owned motor vehicles can be furnished to any contractor in 
an area served by GSA-IFMS; and
    (3) A contractor can commercially lease a motor vehicle for more 
than 60 days after GSA has determined that it can provide the required 
vehicle.
    (c) GSA has the responsibility for acquisition of motor vehicles 
for Government agencies. All requisitions shall be processed via GSA 
Autochoice in accordance with 41 CFR 101-26.501.
    (d) Contractors shall submit all motor vehicle requirements to the 
contracting officer for approval.
    (e) The acquisition of sedans and station wagons is limited to 
small, subcompact, and compact vehicles which meet Government fuel 
economy standards. The acquisition of light trucks is limited to those 
vehicles which meet the current fuel economy standards set by Executive 
Orders 12003 and 12375.
    (f) Cost reimbursement contractors may be authorized by the 
contracting officer to utilize GSA Federal Supply Schedule 751, Leasing 
of Automobiles and Light Trucks, for short term rentals not to exceed 
60 days, and are required to utilize available GSA consolidated leasing 
programs for long term (60 continuous days or longer) commercial 
leasing of passenger vehicles and light trucks.
    (g) The Personal Property Management Division, within the 
Headquarters procurement organization shall certify all requisitions 
prior to submittal to GSA for the following:
    (1) The acquisition of sedans and station wagons.
    (2) The lease (60 continuous days or longer) of any passenger 
automobile.
    (3) The acquisition or lease (60 continuous days or longer) of 
light trucks less than 8,500 GVWR.
    (h) Purchase requisitions for other motor vehicles may be submitted 
directly to GSA when approved by the contracting officer.
    (i) Contractors shall thoroughly examine motor vehicles acquired 
under a GSA contract for defects. Any defect shall be reported promptly 
to GSA, and repairs shall be made under terms of the warranty.


945.570-2  Disposition of motor vehicles.

    (a) The contractor shall dispose of DOE-owned motor vehicles as 
directed by the contracting officer.
    (b) DOE-owned motor vehicles may be disposed of as exchange/sale 
items when directed by the contracting officer; however, a designated 
DOE official must execute the Title Transfer forms (SF-97).


945.570-3   Reporting motor vehicle data.

    (a) Contractors conducting motor vehicle operations shall forward 
annually to the contracting officer their plan for acquisition of motor 
vehicles for the next fiscal year for review, approval and submittal to 
DOE Headquarters. This plan shall conform to the fuel efficiency 
standards for motor vehicles for the applicable fiscal year, as 
established by Executive Orders 12003 and 12375 and as implemented by 
GSA and current DOE directives. Additional guidance for the preparation 
of the plan will be issued by the contracting officer, as required.
    (b) Contractors operating DOE-owned, GSA leased and/or commercially 
leased (for 60 continuous days or longer) motor vehicles shall prepare 
and electronically submit the following annual year-end reports to the 
contracting officer:
    (1) Annual Motor Vehicle Fleet Report.
    (2) Federal Fleet Report (41 CFR 102-34.335).

Subpart 945.6--Reporting, Reutilization, and Disposal


945.602   Reutilization of Government property.


945.602-3   Screening.

    (a) Standard screening. (1) Prior to reporting excess property to 
GSA, all reportable property, as identified in Federal Management 
Regulations 41 CFR 102-36.220, shall be reported for centralized 
screening in the DOE Energy Asset Disposal System (EADS). Reportable 
excess personal property will be screened internally via the EADS 
system for a period of 15 days.
    (i) EADS requires the inclusion of a six character Activity Address 
Code (AAC) which identifies the reporting contractor. The AAC will be 
assigned by DOE Headquarters upon receipt of a formal letter of 
authorization signed by the DOE contracting officer.
    (ii) Requests to establish, extend or delete an Activity Address 
Code shall be submitted by the contracting officer to the Office of 
Procurement and Assistance Management, Personal Property Management 
Division, within the Headquarters procurement organization.
    (b) Special screening requirements. (2) Special test equipment with 
commercial components.--Prior to reporting the property to GSA in 
accordance with 48 CFR 45.604-1(a), (b) and (c), the property shall be 
reported and screened within DOE in accordance with 945.602-3(a) and 
945.602-70.
    (3) Printing equipment. All printing equipment excess to 
requirements shall

[[Page 11992]]

be reported to the Office of Administration at Headquarters.


945.602-70   Local screening.

    Local screening shall be done using EADS.


945.603   Abandonment, destruction or donation of excess personal 
property.

    See 945.670 for DOE disposal methods.


945.604   Disposal of surplus property.


945.604-1   Disposal methods.

    (b)(3) Recovering precious metals. Contractors generating 
contractor inventory containing precious metals or possessing precious 
metals excess to their programmatic requirements, shall identify and 
promptly report such items to the contracting officer for review, 
approval and reporting to the DOE Business Center for Precious Metals 
Sales & Recovery (Business Center). This includes Gold, Silver, 
Platinum, Rhodium, Palladium, Iridium, Osmium, and Ruthenium in any 
form, shape, concentration, or purity. Report all RCRA contaminated 
precious metals, but not radiological contaminated. The Y-12 NNSA Site 
Office is responsible for maintaining the DOE Business Center. Precious 
metals scrap will be reported to the DOE Business Center.
    (d) See 945.670 for DOE disposal methods.


945.670   DOE disposal methods.


945.670-1   Plant clearance function.

    If the plant clearance function has not been formally delegated to 
another Federal agency, the contracting officer shall assume all 
responsibilities of the plant clearance officer identified in 48 CFR 
45.606-3.


945.670-2   Disposal of radioactively contaminated personal property.

    Special procedures regarding the disposal of radioactively 
contaminated property may be found at 41 CFR 109-45.50.


945.670-3   Waiver of screening requirements.

    (a) The Director of the Personal Property Management Division, 
within the Headquarters procurement organization may authorize 
exceptions from screening requirements.
    (b) A request to the Director of the Personal Property Management 
Division, within the Headquarters procurement organization for the 
waiver of screening requirements must be submitted by the Procurement 
Directors with a justification setting forth the compelling 
circumstances warranting the exception.


945.671   Contractor inventory in foreign countries.

    Contractor inventory located in foreign countries will be utilized 
and disposed of in accordance with DOE-PMR 41 CFR part 109-43, subpart 
109-43.5, and part 109-45, subpart 45.51.

PART 970--DOE MANAGEMENT AND OPERATING CONTRACTS

    15. The authority citation for part 970 continues to read as 
follows:

    Authority:  42 U.S.C. 2201; 2282a; 2282b; 2282c; 42 U.S.C. 7101 
et seq.; 50 U.S.C. 2401 et seq.


970.5244-1   [Amended]

    16. Section 970.5244-1 is amended by:
    a. Revising the clause date to read as set forth below; and
    b. Revising clause paragraph (k) and adding a paragraph (q)(13).
    The revisions and additions read as follows:


970.5244-1   Contractor purchasing system.

* * * * *
    CONTRACTOR PURCHASING SYSTEM (XXX 20XX) [abbreviated month and year 
of the date of publication of the final rule]
* * * * *

    (k) Government Property. The Contractor shall establish and 
maintain a property management system that complies with criteria in 
48 CFR 970.5245-1, Property, and 48 CFR 52.245-1, Government 
Property.
* * * * *
    (q) * * *
    (13) Products made in Federal penal and correctional 
institutions--41 CFR 101-26.702

* * * * *
    17. Section 970.5245-1 is amended by:
    a. Revising the date of the clause to read as set forth below;
    b. Removing and reserving paragraph (i)(1)(ii)(B).
    The revisions read as follows:


970.5245-1   Property.

* * * * *
    PROPERTY (XXX 20XX) [abbreviated month and year 30 DAYS AFTER date 
of publication of the final rule]
* * * * *

    (i) * * *
    (1) * * *
    (ii) * * *
    (B) [Reserved]

* * * * *
[FR Doc. 2011-4350 Filed 3-3-11; 8:45 am]
BILLING CODE 6450-01-P


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