[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); <a href="/cdn-cgi/l/email-protection#4b2124232565292a382322383f2a0b233a652f242e652c243d"><span class="__cf_email__" data-cfemail="9af0f5f2f4b4f8fbe9f2f3e9eefbdaf2ebb4fef5ffb4fdf5ec">[email protected]</span></a> 
(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


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