[Federal Register Volume 59, Number 26 (Tuesday, February 8, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2736]


[[Page Unknown]]

[Federal Register: February 8, 1994]


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DEPARTMENT OF ENERGY

48 CFR Parts 912, 952 and 970

 

Acquisition Regulation; Project Control System

AGENCY: Department of Energy (DOE).

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Department is amending the Department of Energy 
Acquisition Regulation (DEAR) to update existing coverage addressing 
the use of contractor project control systems. The Department's new 
approach emphasizes evaluation criteria that stress explicit technical 
and schedule baseline development and control in addition to cost 
control.

DATES: Written comments should be submitted no later than February 8, 
1994.

ADDRESSES: Comments should be forwarded to the attention of Kevin M. 
Smith, Procurement Policy Division, at the address indicated below.

FOR FURTHER INFORMATION CONTACT:

Kevin M. Smith, Procurement Policy Division (HR-521.1), Department of 
Energy, 1000 Independence Avenue, SW., Washington, DC 20585, (202) 586-
8189.
Mary Ann Masterson, Office of the Assistant General Counsel for 
Procurement and Finance (GC-34), Department of Energy, 1000 
Independence Avenue, SW., Washington, DC 20585, (202) 586-1900.

SUPPLEMENTARY INFORMATION:

I. Background
II. Section-by-Section Analysis
III. Procedural Requirements
    A. Review Under Executive Order 12866
    B. Review Under Executive Order 12778
    C. Review Under the Regulatory Flexibility Act
    D. Review Under the Paperwork Reduction Act
    E. Review Under Executive Order 12612
    F. Review Under the National Environmental Policy Act
IV. Public Comments

I. Background

    The DOE previously used the Cost and Schedule Control System 
Criteria (CSCSC) to evaluate management systems on selected contracts. 
A recent internal directive, DOE Notice 4700.5, Project Control System 
Guidelines (Notice), revised the method for applying control systems to 
the management of projects by expanding upon and replacing the CSCSC. 
The new approach includes explicit technical and schedule baseline 
development and control in addition to cost control. The previous 
directive addressing this issue, DOE Order 2250.1D, Cost and Schedule 
Control Systems Criteria, has been canceled. DOE Project Managers are 
responsible for determining the applicability of the Project Control 
System and the extent to which the requirements of the Notice will be 
utilized in individual contracts. Project Managers will have the 
flexibility to tailor requirements, encourage formulation of customized 
project control strategies for each project or group of projects, and 
emphasize the appropriate degree of application for each guideline 
element to effectively control technical, schedule, and cost risks.

II. Section-by-Section Analysis

    A detailed list of changes follows:
    1. Subpart 912.70 is added to provide guidance for the use of the 
new Project Control System Guidelines.
    2. Subsection 952.212-73, Cost and schedule control systems 
criteria, is amended to incorporate the Project Control System contract 
clause.
    3. Subsection 970.5204-50 is amended to reflect the new Project 
Control System Guidelines.

III. Procedural Requirements

A. Review Under Executive Order 12866

    The Department of Energy has determined that today's regulatory 
action is not 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).

B. Review Under Executive Order 12778

    Section 2 of Executive Order 12778 instructs each agency subject to 
Executive Order 12291 to adhere to certain requirements in promulgating 
new regulations and reviewing existing regulations. These requirements, 
set forth in sections 2(a) and (b), include eliminating drafting errors 
and needless ambiguity, drafting the regulations to minimize 
litigation, providing clear and certain legal standards for affected 
conduct, and promoting simplification and burden reduction. Agencies 
are also instructed to make every reasonable effort to ensure that the 
regulation specifies clearly any preemptive effect, effect on existing 
Federal law or regulation, and retroactive effect; describes any 
administrative proceedings to be available prior to judicial review and 
any provisions for the exhaustion of such administrative proceedings; 
and defines key terms. DOE certifies that this proposed rule meets the 
requirements of sections 2(a) and (b) of Executive Order 12778.

C. Review Under the Regulatory Flexibility Act

    This proposed rule was reviewed under the Regulatory Flexibility 
Act of 1980, Public Law 96-354, which requires preparation of a 
regulatory flexibility analysis for any rule that is likely to have a 
significant economic impact on a substantial number of small entities. 
This proposed rule will have no impact on interest rates, tax policies 
or liabilities, the cost of goods or services, or other direct economic 
factors. It will also not have any indirect economic consequences such 
as changed construction rates. DOE certifies that this proposed rule 
will not have a significant economic impact on a substantial number of 
small entities and, therefore, no regulatory flexibility analysis has 
been prepared.

D. Review Under the Paperwork Reduction Act

    No new information collection or recordkeeping requirements are 
imposed by this proposed rule. Accordingly, no OMB clearance is 
required under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501, et 
seq.).

E. 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. This proposed rule will 
apply to States that contract with DOE; however, none of the revisions 
is substantive in nature.

F. Review Under the National Environmental Policy Act

    DOE has concluded that this proposed rule would not represent a 
major Federal action having significant impact on the human environment 
under the National Environmental Policy Act (NEPA) of 1969 (42 U.S.C. 
4321, et seq.) (1976) or the Council on Environmental Quality 
Regulations (40 CFR Parts 1500-1508) and, therefore, does not require 
an environmental impact statement or an environmental assessment 
pursuant to NEPA.

IV. Public Comments

    Interested persons are invited to participate by submitting data, 
views or arguments with respect to the proposed DEAR amendments set 
forth in this notice. Three copies of written comments should be 
submitted to the address indicated in the ``ADDRESSES'' section of this 
notice. All comments received will be available for public inspection 
in the DOE Reading Room, 1E-190, Forrestal Building, 1000 Independence 
Avenue, SW., Washington, DC 20585, between the hours of 9 a.m. and 4 
p.m., Monday through Friday, except Federal holidays. All written 
comments received on or before the date specified in the beginning of 
this notice and all other relevant information will be considered by 
DOE before taking final action. Comments received after that date will 
be considered to the extent that time allows. Any person submitting 
information which that person believes to be confidential and which may 
be exempt from public disclosure should submit one complete copy, as 
well as an additional copy from which the information claimed to be 
confidential has been deleted. DOE reserves the right to determine the 
confidential status of the information or data and to treat it 
according to its determination. The Department's generally applicable 
procedures for handling information, which has been submitted in a 
document and may be exempt from public disclosure, are set forth in 10 
CFR 1004.11. The Department has concluded that this proposed rule does 
not involve a substantial issue of fact or law and that the rule should 
not have a substantial impact on the nation's economy or large numbers 
of individuals or businesses. Therefore, pursuant to section 50(c) of 
the DOE Organization Act (42 U.S.C. 7191(c)) and the Administrative 
Procedure Act (5 U.S.C. 553), the Department does not plan to hold a 
public hearing on this proposed rule.

List of Subjects in 48 CFR Parts 912, 952, and 970

    Government procurement.

    Issued in Washington, DC, on February 1, 1994.
G. L. Allen,
Acting Deputy Assistant Secretary for Procurement and Assistance 
Management.
    For the reasons set out in the preamble, chapter 9 of title 48 of 
the Code of Federal Regulations is proposed to be amended as set forth 
below.
    1. The authority citation for parts 912 and 952 continues to read 
as follows:

    Authority: 42 U.S.C. 7254; 40 U.S.C. 486(c).

PART 912--CONTRACT DELIVERY OR PERFORMANCE

    2. Subpart 912.70 is added to read as follows:

Subpart 912.70--Project Control System

912.7001  Project control system.
912.7002  Solicitation provision and contract clause.

Subpart 912.70--Project Control System


Sec. 912.7001  Project control system.

    DOE project managers are responsible for determining the 
applicability of the Project Control System and the extent to which the 
requirements of the applicable DOE Directives will be utilized in 
individual contracts. Project managers will have the flexibility to 
tailor requirements, encourage formulation of customized project 
control strategies for each project or group of projects, and determine 
the appropriate degree of application for each guideline element to 
effectively control technical, schedule, and cost risks.


Sec. 912.7002  Solicitation provision and contract clause.

    (a) The contracting officer shall include the clause at 952.212-73, 
Project Control System, in solicitations and contracts identified by 
the project manager as suitable for the requirements of the Project 
Control System Guidelines.

PART 952--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Subsection 952.212-73 is revised to read as follows: 952.212-73 
Project control system.
    As prescribed in 912.7002(a), insert the following clause in 
solicitations and contracts where the requirements of the Project 
Control System are to be utilized.

Project Control System (XXX 1994)

    (a) In the performance of this contract, the contractor shall 
establish, maintain, and use a project control system meeting the 
requirements specified in the contract, in DOE Notice 4700.5 
``PROJECT CONTROL SYSTEM GUIDELINES,'' and any other system 
requirements defined by the contracting officer. The contractor may 
propose the use of a pre-existing project control system if such 
system satisfies the requirements of DOE Notice 4700.5.
    (b) The contractor shall provide the contracting officer with a 
detailed written description of the proposed project control system 
for review and approval within ______ [contracting officer insert 
number] calendar days after award of the contract. Cost effective 
application of controls will be a critical factor in determining 
acceptability of the proposed system.
    (c) Upon system approval by the contracting officer, the 
contractor shall fully implement the project control system. The 
contractor shall not make any significant changes to the approved 
system without the prior written approval of the contracting 
officer. If a pre-existing project control system does not satisfy 
the requirements of DOE Notice 4700.5, revisions necessary to assure 
compliance shall be made with no change to the estimated cost/fixed 
fee, or price of the contract.
    (d) The contractor shall provide the contracting officer or his/
her authorized representative with access to all pertinent records, 
data, and plans for purposes of initial approval, approval of 
proposed changes, and the operation of the project control system.
    (e) The contractor shall set forth applicable project control 
system requirements in those subcontracts identified by the 
contracting officer. The contractor shall incorporate in the 
identified subcontracts provisions for review and surveillance of 
the subcontractors' systems. The review will be conducted by the 
contractor, unless the Government, contractor, or subcontractor 
requests Government review.

PART 970--DOE MANAGEMENT AND OPERATING CONTRACTS

    4. 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, Pub. 
L. 95-91 (42 U.S.C. 7254), sec. 201 of the Federal Civilian Employee 
and Contractor Travel Expenses Act of 1985 (41 U.S.C. 420) and sec. 
1534 of the Department of Defense Authorization Act, 1986, Pub. L. 
99-145 (42 U.S.C. 7256a), as amended.


Sec. 970.5204-50  [Amended]

    5. Section 970.5204-50 is amended by revising the heading to read 
``Project control system.''

[FR Doc. 94-2736 Filed 2-7-94; 8:45 am]
BILLING CODE 6450-01-P