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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: December 15, 2004

SUBJECT: Department of Energy Acquisition Regulation (DEAR); Work for Others

SOURCE: Federal Register, December 15, 2004, Vol. 69, No. 240, page 75001

AGENCIES: Department of Energy (DOE)

ACTION: Interim Final Rule (IFR)

SYNOPSIS: DOE is amending DEAR Part 970, DOE Management and Operating Contracts, to address work for non-DOE entities that is performed by DOE contractors that manage and operate DOE-owned or -leased facilities.

EDITOR'S NOTE: The DEAR is Part 9 of Title 48 of the Code of Federal Regulations (CFR). It is available on the Internet at http://professionals.pr.doe.gov/ma5/MA-5Web.nsf/Procurement/Acquisition+Regulation?OpenDocument.

DATES: This IFR is effective January 14, 2005. Comments on the IFR must be received by January 14, 2005.

ADDRESSES: Comments on this IFR may be submitted on the Federal eRulemaking Portal at http://www.regulations.gov; by e-mail to richard.langston@hq.doe.gov; by mail to Richard Langston, Mail Code ME-61, U.S. Department of Energy, 1000 Independence Avenue, SW, Washington, DC 20585; or by telephone: 202-287-1339.

FOR FURTHER INFORMATION CONTACT: Andrew Geary, U.S. Department of Energy, Office of Procurement and Assistance Management, ME-62, 1000 Independence Avenue, SW, Washington, DC 20585; 202-287-1507; e-mail: andrew.geary@hq.doe.gov.

SUPPLEMENTAL INFORMATION: DOE owns or sponsors major research and development and manufacturing facilities throughout the United States that are managed and operated by contractors. DOE permits these "management and operating" (M&O) contractors to perform non-DOE work for other federal agencies and non-federal entities on a fully reimbursable basis under the "Work for Others" program when such work is authorized by law and the work requires DOE's unique technologies and capabilities. DOE allows such work to be conducted by M&O contractors if: (1) DOE's laboratories and facilities do not compete directly with the domestic private sector; (2) the acceptance and performance of work complies with applicable statutes and regulations; (3) work is fully funded by the non-DOE entity requesting work to be performed; and, (4) the work to be performed is consistent with or complimentary to DOE missions and the missions of the facility where the work will be performed.

To address the Work for Others program, this IFR makes the following changes:

• DEAR 970.1707, Work for Others, is added. It consists of the following subsections:
  
  
  • DEAR 970.1707-1, Scope, which states that "DOE is authorized to make its facilities available to other federal and non-federal entities (sponsors) for the conduct of certain research and development and training activities."
    
    
  • DEAR 970.1707-2, Purpose, which states that the purpose of the Work for Others program is to: "(a) provide access for non-DOE entities to highly specialized or unique DOE facilities, services, or technical expertise, when private facilities are inadequate; (b) increase research and development interactions among DOE's management and operating contractors and industry in order to transfer DOE technologies to industry for further development or commercialization; (c) maintain facility core competencies; (d) enhance the science and technology capabilities at DOE facilities; and, (e) provide assistance to other federal agencies and non-federal entities in accomplishing goals that may otherwise be unattainable and to avoid the possible duplication of effort at federal facilities."
    
    
  • DEAR 970.1707-3, Terms Governing Work for Others, which states that "DOE's internal review and approval procedural requirements for individual work for others agreements are set forth in DOE Order 481.1C [Work for Others (Non-Department of Energy Funded Work)] (as supplemented by DOE Manual 481.1-1A for agreements with non-federal entities), which may be amended from time to time, and such other guidance as may be issued by DOE."
    
    
  • DEAR 970.1707-4, Contract Clause, which requires that DEAR 970.5217-1, Work for Others Program (Non-DOE Funded Work), be included in any contract that may involve work under the Work for Others program.
  
  
• DEAR 970.5217-1, Work for Others Program, is added.
  
  
  • Paragraph (b) requires the M&O contractor to "draft, implement, and maintain formal policies, practices, and procedures in accordance with this clause, which must be submitted to the contracting officer for review and approval."
    
    
  • Paragraph (c) prohibits the M&O contractor from (1) performing Work for Others activities that would place it in direct competition with the domestic private sector; (2) responding to a solicitation from another federal agency or non-federal organization that involves direct comparative competition, either as an offeror, team member, or subcontractor to an offeror; (3) commencing work on any Work for Others activity until a proposal package has been approved by the DOE contracting officer or designated representative; (4) incurring project costs until receipt of DOE notification that a budgetary resource is available for the project.
    
    
  • Paragraph (c) also requires the M&O contractor to maintain records for the accumulation of costs and the billing of such work; comply with all applicable standards, policies and procedures, including environmental, safety and health, security, safeguards and classification procedures, and human and animal research regulations; and submit all Work for Others agreements to the contracting officer for review and approval.

In addition, DOE is making a technical amendment to DEAR 909.403 Definitions, to identify the Director, Office of Acquisition and Supply Management, National Nuclear Security Administration (NNSA), or designee, as the debarment and suspension official for NNSA.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.

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