[Federal Register Volume 65, Number 207 (Wednesday, October 25, 2000)]
[Proposed Rules]
[Pages 63809-63817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26995]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 65, No. 207 / Wednesday, October 25, 2000 /
Proposed Rules
[[Page 63809]]
DEPARTMENT OF ENERGY
48 CFR Parts 928, 944, 952 and 970
10 CFR Part 719
RIN 1990-AA27
Contractor Legal Management Requirements; Acquisition Regulations
AGENCY: Department of Energy.
ACTION: Notice of proposed rulemaking and opportunity for public
comment.
-----------------------------------------------------------------------
SUMMARY: The Department of Energy (Department) is proposing to
establish new regulations covering contractor legal management
requirements. Conforming amendments are also proposed to the Department
of Energy Acquisition Regulation (DEAR). The proposed regulation will
cover legal costs to be reimbursed by the Department to its facility
management contractors with contracts exceeding $10,000,000. An
appendix to the regulations provides additional guidance to
contractors.
DATES: Written comments must be received on or before the close of
business November 24, 2000.
ADDRESSES: Comments (3 copies) should be addressed to: Laura Fullerton,
GC-61, U.S. Department of Energy, Office of Procurement and Assistance
Management, 1000 Independence Avenue, SW, Washington, DC 20585.
FOR FURTHER INFORMATION CONTACT: Laura Fullerton at (202) 586-3420
([email protected]) or Anne Broker at (202) 586-5060
([email protected]).
SUPPLEMENTARY INFORMATION
I. Background.
II. Discussion of Rule Provisions.
III. Public Comment.
IV. 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 of 1999.
I. Background
The cost principles and contract clauses in the Department's
contracts generally make legal costs, including the cost of litigation,
allowable if reasonable and incurred in accordance with the applicable
cost principles and contract clauses. Consequently, the Department has
an ongoing obligation to monitor, supervise, and control the legal
costs that it reimburses.
The Department has engaged contractors in a public dialogue aimed
at controlling the increasing legal costs reimbursed by the Department.
On August 31, 1994, the Department published an interim Acquisition
Letter as an interim policy in the Federal Register (59 FR 44981). The
interim Acquisition Letter established the Department's policy
regarding the terms of engagement that are a condition of any
authorization to a current or former management and operating (M&O)
contractor to engage a law firm for purposes of litigation. The interim
Acquisition Letter, was finalized as a Policy Statement on April 3,
1996 (61 FR 14763).
The Department also developed, and distributed to field counsel,
Litigation Management Procedures, as a contract reform action item on
March 23, 1994. The Litigation Management Procedures and the Final
Policy Statement have been referenced in, and attached to, the
Department's management and operating contracts executed since then.
This rulemaking action has its basis in those two documents.
This proposed rulemaking is intended to create a new Part 719, in
Chapter 10 of the Code of Federal Regulations, to establish regulations
to monitor and control legal costs and to provide guidance to aid
contractors and Department personnel in making determinations regarding
the reasonableness of all outside legal costs, including the costs of
litigation. Today's proposed rules and guidance would cover all outside
legal costs incurred by contractors with contracts exceeding
$10,000,000 at facilities owned or leased by the Department. The
policies would also apply to legal counsel retained by the Department
itself for litigation or other legal services where the legal costs
over the life of the matter for which counsel has been retained are
expected to exceed $100,000.
The Department previously determined that case-by-case review of
contractor agreements with outside law firms is necessary to ensure
effective control of contractor litigation costs. The Department now
realizes that this procedure needs to be extended to a broader category
of contractor legal costs, whether or not litigation is involved, for
contracts at facilities owned or leased by the Department.
To facilitate that case-by-case review, the proposed regulation
would require submission of a legal management plan by contractors
where costs for legal services are to be reimbursed by the Department.
Once approved by the Department, the legal management plan, as well as
applicable regulations and contract provisions, will form the basis for
approvals by the Department to reimburse litigation and other legal
expenses.
The proposed regulation also identifies those costs that would be
generally considered allowable and those that would be considered
unallowable. Costs not identified as specifically allowable or
unallowable are still subject to the general rules of allowability and
reasonableness. Additionally, the acquisition of legal services by
contractors falls within the ambit of 48 CFR (DEAR) Part 944 and
Subpart 970.71, which cover contractor purchasing.
In addition to the proposed regulatory material included in this
notice, an Appendix to Part 719 is attached which provides additional
``safe harbor'' guidance for legal management practices. The guidance
provided in the Appendix may be updated from time to time by the
Department and those updates will be distributed to contractors,
contracting officers and Department counsel.
The Department also proposes to add 48 CFR (DEAR) 970.5204-31,
Insurance-Litigation and Claims, to the contract clauses in 48 CFR
(DEAR) Part 952 to clarify the requirement that facility management
contracts exceeding an amount of $10,000,000 must include this clause.
The application of the proposed legal management regulation
[[Page 63810]]
would be tied to the application and use of the Insurance-Litigation
and Claims clause, or a specialized clause requiring compliance with
Part 719, in a facility management contract. The Insurance-Litigation
and Claims clause already contains a requirement that contractors keep
the Department informed of new and ongoing litigation, whether or not
the costs are to be reimbursed.
Finally, conforming technical amendments to the Department of
Energy's Acquisition Regulation (DEAR), at 48 CFR Chapter 9, are
proposed at the end of this notice of proposed rulemaking.
II. Discussion of Rule Provisions
Subpart A, Sections 719.1-719.7, sets out general provisions
providing definitions and addressing who is covered by this part.
Section 719.3 states that the Department's contracts for an amount
exceeding $10,000,000 for work performed at facilities owned or leased
by the Department and containing the Insurance-Litigation and Claims
clause are covered contracts subject to the proposed regulation.
Section 719.3 also makes it clear that reimbursement of contractor
legal costs under covered contracts is subject to compliance with the
proposed regulation. Coverage is also extended to legal counsel, in
section 719.4, retained by the Department itself where the legal costs
are expected to exceed $100,000 for a particular matter. Procedures for
exceptions or deviations are set out in section 719.7. The procedures
call for a determination by the General Counsel. In the case of a
Department contract, the determination would be made by the
Department's General Counsel; in the case of a National Nuclear
Security Administration (NNSA) contract, it would be made by the NNSA
General Counsel.
Subpart B, Sections 719.10-719.17, describes the requirement for
submission of a legal management plan and what is to be included in the
plan. Subparagraphs (c)(6) and (d)(1) in section 719.10 require that
experience as an advocate in alternative dispute resolution procedures,
primarily mediation, be considered as a factor in selection of retained
counsel, and a system for identification of matters suitable for
alternative dispute resolution be described in the legal management
plan. Contractors will have 60 days following execution of a contract
with the Department for submission of the legal management plan.
Section 719.15 sets out a requirement for submission of a staffing and
resource plan for significant matters, and section 719.16 requires
submission of the staffing and resource plan no later than 30 days
after the filing of an answer in a significant matter involving
litigation. Section 719.17 requires submission of an annual legal
budget for matters for which reimbursable legal costs will exceed
$100,000. The annual budget should be broken down by activity or phase
of a matter. The Department is interested in receiving comments on
whether there is value added by having budget submission requirements
in both subparagraph 719.15(c), as part of a staffing and resource
plan, and in section 719.17.
Subpart C, Sections 719.20-719.21, describes the requirements for
engagement letters. Engagement letters must be prepared and submitted
to retained legal counsel for matters where costs are expected to
exceed $25,000. Subparagraph 719.21(b)(10) requires the contractor to
include the right of the government to inspect, copy and audit
documentation of billable fees and other records where the Department
is reimbursing the legal costs.
Subpart D, Sections 719.30-719.39, describes the policies and
limitations for reimbursement of legal costs associated with retained
legal counsel. Sections 719.32-719.35 describe categories of costs
which require special treatment or advance approval. Requirements for
contractor management of subcontractor legal matters, so that the
contractor keeps the Department informed about significant legal
matters, are set out in section 719.37. Section 719.37 also prohibits
the prime contractor from bundling subcontractor legal costs with non-
legal costs in submissions for reimbursements so that subcontractor
legal costs are clearly identified to Department counsel.
Subpart E, Sections 719.40-719.42, sets out requirements for the
Department's field office counsel. Requests for reimbursement of legal
costs made by contractors and retained legal counsel are discussed in
sections 719.40-719.41. Section 719.42 describes the types of
recommendations made by field counsel which must be coordinated with
Headquarters.
III. Public Comments
Interested persons are invited to participate by submitting data,
views or arguments with respect to the new regulation proposed 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 as part of the
administrative record on file for this rulemaking in the Department of
Energy Reading Room, Room 1E-090, Forrestal Building, 1000 Independence
Avenue, SW, Washington, DC 20585, (202) 586-3142, between the hours 9
a.m. and 4 p.m., Monday through Friday, except Federal holidays. All
written comments received by the date indicated in the DATES section of
this notice of proposed rulemaking and all other relevant information
in the record will be carefully assessed and fully considered prior to
the publication of the final rule. Any information or data considered
to be exempt from public disclosure by law must be so identified and
submitted in writing, one copy, as well as one complete copy from which
the information believed to be exempt from disclosure is deleted. The
Department will determine if the information or data is exempt from
disclosure.
IV. Procedural Requirements
A. Review Under Executive Order 12866
Today's 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).
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; (3) provide a clear legal standard
for affected conduct rather than a general standard; and (4) 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
[[Page 63811]]
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.
The Department has completed the required review and determined that,
to the extent permitted by law, the regulations meet 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 a Federal agency prepare a regulatory flexibility analysis for any
rule for which the agency is required to publish a general notice of
proposed rulemaking. Such an analysis is not required, however, if the
agency certifies that the rule would not, if promulgated, have a
significant economic impact on a substantial number of small entities
(5 U.S.C. 605(b)).
The Department certifies that today's proposal creating a new part
10 CFR Part 719 will not have a significant economic impact on a
substantial number of small entities. This rule will only restate and
clarify the Department's restrictions on the reimbursement of
contractor legal costs. The rule will affect only potential claims for
reimbursement of costs. The rule will not directly regulate small
entities.
D. Review Under the Paperwork Reduction Act
The proposed rule would require each covered contractor to submit a
legal management plan that describes the contractor's practices for
managing legal costs and matters for which it procures the services of
retained legal counsel. This collection of information is required for
the Department to determine whether to approve reimbursement of
contractors' litigation and other legal expenses.
The Department is submitting to the Office of Management and Budget
(OMB), simultaneously with the publication of this proposed rule, this
proposed collection of information for review and approval under the
Paperwork Reduction Act, 44 U.S.C. 3501 et seq. An agency may not
conduct or sponsor, and a person is not required to respond to, a
collection of information unless the collection has been reviewed and
assigned a control number by OMB. Interested persons may obtain a copy
of the Paperwork Reduction Act Submission from the contact person named
in this notice.
Interested persons are invited to submits comments to OMB addressed
to: Department of Energy Desk Officer, Office of Information and
Regulatory Affairs, OMB, 725 17th Street, NW., Washington, DC 20503.
Persons submitting comments to OMB also are requested to send a copy to
the contact person at the address given in the ADDRESSES section of
this notice. OMB is particularly interested in comments on: (1) The
necessity for the proposed collection of information, including whether
the information will have practical utility; (2) the accuracy of DOE's
estimates of the burden; (3) ways to enhance the quality, utility, and
clarity of the information to be collected; and (4) ways to minimize
the burden of the collection of information on respondents, including
the use of automated collection techniques or other forms of
information technology.
The proposed requirements for completion of a legal management plan
under this regulation are essentially the same as the currently
existing requirements that have applied to management and operating
contractors for several years, with the difference that this rulemaking
will extend the requirements to all legal matters and not just
litigation matters.
Preparation of the initial Legal Management Plan will usually be a
one-time action completed at the start of a five year contract. The
estimated time for preparation of this initial plan is 15-30 hours.
This estimate is based on discussions with contractors about their
current burden for preparing litigation management plans. The only
requirement for updating relates to the submission of an annual budget
for significant matters. This revision is estimated to be about 10
hours. Approximately 36 contractors will be subject to the requirement
to submit a Legal Management Plan. The Department estimates that in any
one year approximately 20% or 7 Legal Management Plans will be
submitted to the Department for approval each year. The total annual
paperwork burden that will result from these requirements is estimated
to be approximately 465 to 570 hours.
E. Review Under the National Environmental Policy Act
The Department 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 Department of Energy 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 would be strictly procedural (categorical exclusion A6).
Therefore, this proposed rule does not require an environmental impact
statement or environmental assessment pursuant to NEPA.
F. Review Under Executive Order 13132
Executive Order 13132 (64 FR 43255, August 10, 1999) requires
agencies to develop an accountable process to ensure meaningful and
timely input by State and local officials in the development of
regulatory policies that have ``federalism implications.'' As defined
in the Executive Order, policies that have federalism implications
include regulations that have substantial direct effects 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. The Department has examined this proposed rule
and has determined that it would 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 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 affects private sector entities, and the
impact is less than $100 million. 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 proposed rule or policy that may affect family well-being. Today's
rule does not impact on the autonomy or integrity of the family
institution. Accordingly, the Department has concluded that it is not
necessary to prepare a Family Policymaking Statement.
[[Page 63812]]
List of Subjects
10 CFR Part 719
Government contracts, Lawyers, Legal matters.
48 CFR Parts 928, 944, 952 and 970.
Government procurement.
Issued in Washington, D.C. on October 16, 2000.
T. J. Glauthier,
Deputy Secretary.
For the reasons set out in the preamble, Chapter III of title 10
and Chapter 9 of title 48 of the Code of Federal Regulations are
proposed to be amended as set forth below:
1. 10 CFR Part 719 is added to read as follows:
PART 719--CONTRACTOR LEGAL MANAGEMENT REQUIREMENTS
Subpart A--General Provisions
719.1 What is the purpose of this part?
719.2 What are the definitions of terms used in this part?
719.3 What contracts are covered by this part?
719.4 Are law firms that are retained by the Department covered by
this part?
719.5 What contracts are not covered by this part?
719.6 Are there any types of legal matters not included in the
coverage of this part?
719.7 Is there a procedure for exceptions or deviations from this
part?
Subpart B--Legal Management Plan
719.10 What information must be included in the legal management
plan?
719.11 Who must submit a legal management plan?
719.12 When must the plan be submitted?
719.13 Who at the Department must receive and review the plan?
719.14 Will the Department notify the contractor concerning the
adequacy or inadequacy of the submitted plan?
719.15 What are the requirements for a staffing and resource plan?
719.16 When must the staffing and resource plan be submitted?
719.17 Are there any budgetary requirements?
Subpart C--Engagement Letter
719.20 When must an engagement letter be used?
719.21 What are the required elements of an engagement letter?
Subpart D--Reimbursement of Costs Subject to This Part
719.30 Is there a standard for determining cost reasonableness?
719.31 How does the Department determine whether fees are
reasonable?
719.32 For what costs is the contractor, or Department retained
counsel, limited to reimbursement of actual costs only?
719.33 What categories of costs are unallowable?
719.34 What is the treatment for travel costs?
719.35 What categories of costs require advance approval?
719.36 Who at the Department must give advance approval?
719.37 Are there any special procedures or requirements regarding
subcontractor legal costs?
719.38 Will costs covered by this part be subject to audit?
719.39 What happens when more than one contractor is a party to
the matter?
Subpart E--Department Counsel Requirements
719.40 What is the role of Department counsel as a contracting
officer's representative?
719.41 What information must be forwarded to the General Counsel's
Office concerning contractor submissions to Department counsel under
this part?
719.42 What types of field actions must be coordinated with
Headquarters?
Appendix to Part 719--Guidance for Legal Resource Management
Authority: 42 U.S.C. 2201, 5814, 5815, 7101 et seq.; 50 U.S.C.
2401, et seq.
Subpart A--General Provisions
Sec. 719.1 What is the purpose of this part?
This part is intended to facilitate control of Department and
contractor legal costs, including litigation costs. The contractor is
required to develop a procedure for retaining legal counsel, and to
document the analysis used to decide when, where and who will be
engaged as outside counsel and the terms of the engagement. Payment of
law firm invoices and reimbursement of contractor legal costs under
covered contracts is subject to compliance with this part.
Sec. 719.2 What are the definitions of terms used in this part?
For purposes of this part:
Alternative dispute resolution includes processes such as
mediation, neutral evaluation, mini-trials and arbitration.
Contractor means any person or entity with whom the Department
contracts for the acquisition of goods or services.
Covered contracts means those contracts described in Secs. 719.3
and 719.4.
Department means the Department of Energy, including the National
Nuclear Security Administration.
Department counsel means the individual in the field office, or
Headquarter's office, designated as the contracting officer's
representative and point of contact for a contractor or Department
retained legal counsel, for purposes of this part only, for submission
and approval of the legal management plan, advance approval of certain
costs, and submission of a staffing and resource plan, as addressed in
this part.
Legal costs include, but are not limited to, administrative
expenses associated with the provision of legal services by retained
legal counsel; the costs of legal services provided by retained legal
counsel; the costs of the services of accountants, consultants, or
others retained by the contractor or by retained legal counsel to
assist retained legal counsel; and any similar costs incurred by or in
connection with the services of retained legal counsel.
Legal management plan means a statement describing the contractor's
practices for managing legal costs and matters for which it procures
the services of retained legal counsel.
Retained legal counsel means members of the bar working in the
private sector, either individually or in law firms, who are retained
by a contractor or the Department to provide legal services.
Significant matters means legal matters, including litigation,
involving significant issues as determined by Department counsel, and
any legal matter where the amount of any legal costs, over the life of
the matter, is expected to exceed $100,000.
Staffing and resource plan means a statement prepared by retained
legal counsel describing plans for managing a significant matter.
Sec. 719.3 What contracts are covered by this part?
This part covers cost reimbursement contracts:
(a) For an amount exceeding $10,000,000;
(b) Involving work performed at the facilities owned or leased by
the Department; and
(c) Containing the contract clause Insurance-Litigation and Claims,
48 CFR (DEAR) 952.228-1 or 970.5204-31, or a specialized clause
requiring compliance with this part.
Sec. 719.4 Are law firms that are retained by the Department covered
by this part?
Retained legal counsel under contract with the Department itself to
provide legal services must also comply with this part where the legal
costs over the life of the matter for which counsel has been retained
are expected to exceed $100,000.
Sec. 719.5 What contracts are not covered by this part?
This part does not cover:
(a) Fixed price contracts; and
[[Page 63813]]
(b) Cost reimbursement contracts for an amount less than
$10,000,000.
Sec. 719.6 Are there any types of legal matters not included in the
coverage of this part?
Matters not covered by this part include:
(a) Matters handled by counsel retained by an insurance carrier,
except for insurance providers of third party administrator services or
retrospective policies where the Department has retained the risk of
liability;
(b) Routine intellectual property law support services;
(c) Routine unemployment compensation matters and labor
arbitrations; and
(d) Routine matters handled by counsel retained through a GSA
supply schedule.
Sec. 719.7 Is there a procedure for exceptions or deviations from this
part?
(a) Requests for exceptions or deviations from this part by
contractors must be made in writing to Department counsel and approved
by the General Counsel. If an alternate procedure is proposed for
compliance with an individual requirement in this part, that procedure
must be included in the written request by the contractor.
(b) The General Counsel may authorize exceptions based on a
recommendation of Department counsel. The General Counsel may also
establish exceptions to this part based on current field office and
contractor practices which satisfy the purpose of these requirements.
(c) Exceptions to this part which are also a deviation from the
cost principles (see subpart D of this part) must be approved by the
Procurement Executive. See 48 CFR (FAR) 31.101. Written requests from
contractors for a deviation to a cost principle must be submitted to
the contracting officer, with a copy provided to Department counsel.
Subpart B--Legal Management Plan
Sec. 719.10 What information must be included in the legal management
plan?
The legal management plan must include the following items:
(a) A description of the legal matters that may necessitate
handling by retained legal counsel.
(b) A discussion of the factors the contractor will consider in
determining whether to handle a particular matter utilizing retained
legal counsel.
(c) An outline of the factors the contractor will consider in
selecting retained legal counsel, including:
(1) Competition;
(2) Past performance and proficiency shown by previously retained
counsel;
(3) Particular expertise in a specific area of the law;
(4) Familiarity with the Department's activity at the particular
site and the prevalent issues associated with facility history and
current operations;
(5) Location of retained legal counsel relative to:
(i) The site involved in the matter,
(ii) Any forum in which the matter will be processed, and
(iii) Where a significant portion of the work will be performed;
(6) Experience as an advocate in alternative dispute resolution
procedures such as mediation;
(7) Actual or potential conflicts of interest; and
(8) The means and rate of compensation (e.g., hourly billing, fixed
fee, blended fees, etc.).
(d) A description of:
(1) The system that the contractor will use to review each case to
determine whether and when alternative dispute resolution is
appropriate;
(2) The role of in house counsel in cost management;
(3) The contractor's process for review and approval of invoices
from outside law firms or consultants;
(4) The contractor's strategy for interaction with, and supervision
of, retained legal counsel;
(5) How appropriate interaction with the contracting officer and
Department counsel will be ensured; and,
(6) The contractor's corporate approach to legal decision making.
Sec. 719.11 Who must submit a legal management plan?
Contractors identified under Sec. 719.3 must submit a legal
management plan.
Sec. 719.12 When must the plan be submitted?
Contractors identified under Sec. 719.3 must submit a legal
management plan within 60 days following the execution of a contract
with the Department.
Sec. 719.13 Who at the Department must receive and review the plan?
The contractors identified under Sec. 719.3 must file a legal
management plan with Department counsel.
Sec. 719.14 Will the Department notify the contractor concerning the
adequacy or inadequacy of the submitted plan?
(a) The Department will notify the contractor within 30 days of the
contractor's submission of the plan of any deficiencies in its
submitted plan.
(b) The contractor must correct identified deficiencies within 30
days of notice of the deficiency.
Sec. 719.15 What are the requirements for a staffing and resource
plan?
(a) For significant matters, the contractor must require retained
legal counsel providing legal services to prepare a staffing and
resource plan as provided in this section. The contractor must then
forward the staffing and resource plan to Department counsel.
Department retained counsel subject to this part must prepare a
staffing and resource plan and forward it to Department counsel.
(b) A staffing and resource plan is a plan describing:
(1) Major phases likely to be involved in the handling of the
matter;
(2) Timing and sequence of such phases;
(3) Projected cost for each phase of the representation; and
(4) Numbers and mix of resources, when applicable, that the
retained legal counsel intends to devote to the representation.
(c) For significant matters in litigation, in addition to the
generalized annual budget required by Sec. 719.10, a staffing and
resource plan must include a budget, broken down by phases, including
at a minimum:
(1) Matter assessment, development and administration;
(2) Pretrial pleadings and motions;
(3) Discovery;
(4) Trial preparation and trial; and
(5) Appeal.
Sec. 719.16 When must the staffing and resource plan be submitted?
(a) For significant matters in litigation, the contractor or
Department retained counsel must submit the staffing and resource plan
no later than 30 days after the filing of an answer or a dispositive
motion in lieu of an answer.
(b) For other significant legal services matters, the contractor or
Department retained counsel must submit the staffing and resource plan
within 30 days following execution of an engagement letter.
(c) Contractors and Department retained counsel must submit updates
to staffing and resource plans annually or sooner if significant
changes occur in the matter.
Sec. 719.17 Are there any budgetary requirements?
(a) Contractors required to submit a legal management plan must
also submit an annual legal budget to Department counsel.
(b) The annual legal budget must include cost projections for known
or existing matters for which reimbursable legal costs will exceed
$100,000, at a
[[Page 63814]]
level of detail reflective of the types of billable activities and the
stage of each such matter.
(c) At the conclusion of the period covered by each annual legal
budget, the contractor must report on its success on staying within
budget.
Subpart C--Engagement Letter
Sec. 719.20 When must an engagement letter be used?
Contractors must prepare and submit an engagement letter to
retained legal counsel expected to provide $25,000 or more in legal
services and submit a copy of this correspondence, including
correspondence from retained legal counsel addressing issues under
Sec. 719.21(b), to Department counsel.
Sec. 719.21 What are the required elements of an engagement letter?
(a) The engagement letter must require retained legal counsel to
assist the contractor in complying with this part and any supplemental
guidance distributed under this part.
(b) At a minimum, the engagement letter must include the following:
(1) A process for review and documented approval of all billing by
a contractor representative, including the timing and scope of billing
reviews.
(2) A statement that provision of records to the Government does
not constitute a waiver of any applicable legal privilege, protection,
or immunity with respect to disclosure of these records to third
parties.
(3) A requirement that the contractor, the Department, and the
General Accounting Office, have the right upon request, at reasonable
times and locations, to inspect, copy, and audit all records
documenting billable fees and costs and any other records or systems of
records relevant to the representation by retained legal counsel.
(4) A statement that all records must be retained for a period of
three (3) years after the final payment.
(c) The contractor must obtain the following information from
retained counsel:
(1) Identification of all attorneys and staff who will be assigned
to the matter and the rate and basis of their compensation i.e., hourly
rates, fixed fees, contingency arrangement).
(2) An initial assessment of the matter, along with a commitment to
provide updates as necessary.
(3) A description of billing procedures, including frequency of
billing and billing statement format.
(d) The contractor must obtain retained counsel's agreement to the
following:
(1) That in significant matters a staffing and resource plan for
the conduct of the matter will be submitted by the retained legal
counsel to the contractor in accordance with the requirements of
Secs. 719.15 and 719.16.
(2) That alternative dispute resolution will be considered at as
early a stage as possible where litigation is involved.
(3) That retained counsel will comply with the cost guidelines in
this subpart C.
(4) That retained counsel will provide a certification concerning
the costs submitted for reimbursement that is consistent with the
certification in the Attachment to Appendix A to this part.
(5) That professional conflicts of interest issues will be
identified and addressed promptly.
(e) Additional requirements may be included in an engagement letter
based on the needs of the contractor or the office requiring the
Department retained counsel.
Subpart D--Reimbursement of Costs Subject to This Part
Sec. 719.30 Is there a standard for determining cost reasonableness?
The standard for cost reasonableness determinations is contained in
the Federal Acquisition Regulation (FAR), at 48 CFR (FAR) 31.201-3.
Sec. 719.31 How does the Department determine whether fees are
reasonable?
In determining whether fees or rates charged by retained legal
counsel are reasonable, the Department may consider:
(a) Whether the lowest reasonably achievable fees or rates
(including any currently available or negotiable discounts) were
obtained from retained legal counsel;
(b) Whether lower rates from other firms providing comparable
services were available;
(c) Whether alternative rate structures such as flat, contingent,
and other innovative proposals, were utilized;
(d) The complexity of the legal matter and the expertise of the law
firm in this area; and
(e) The factors listed in Sec. 719.10(c).
Sec. 719.32 For what costs is the contractor, or Department retained
counsel, limited to reimbursement of actual costs only?
All costs are reimbursable for actual costs only, with no overhead
or surcharge adjustments.
Sec. 719.33 What categories of costs are unallowable?
(a) Specific categories of unallowable costs are contained in the
cost principles at 48 CFR (FAR) part 31 and 48 CFR (DEAR) part 931 and
970.31. See also 41 U.S.C. 256(e).
(b) The Department will not consider for reimbursement any costs
incurred for entertainment or alcoholic beverages. See 48 CFR (FAR)
31.205-14 and 31.205-51 and 41 U.S.C. 256(e).
(c) Costs that are customarily or already included in billed hourly
rates are not separately reimbursable.
(d) Interest charges that a contractor incurs on any outstanding
(unpaid) bills from retained legal counsel are not reimbursable.
Sec. 719.34 What is the treatment for travel costs?
Travel and related expenses must at a minimum comply with the
restrictions set forth in 48 CFR (FAR) 31.205-46, or 48 CFR (DEAR)
970.3102-46, as appropriate, to be reimbursable.
Sec. 719.35 What categories of costs require advance approval?
Costs for the following will not be eligible for reimbursement
without prior written approval from Department counsel:
(a) Computers or general application software, or computerized
databases specifically created for a particular matter;
(b) Charges for materials or non-attorney services expected to
exceed $5,000;
(c) Secretarial and support services, word processing, or temporary
support personnel;
(d) Attendance by more than one person at a deposition, court
hearing, interview or meeting;
(e) Expert witnesses and consultants;
(f) Trade publications, books, treatises, background materials, and
other similar documents;
(g) Professional or educational seminars and conferences;
(h) Preparation of bills or time spent responding to questions
about bills from either the Department or the contractor;
(i) Food and beverages when the attorney or consultant is not on
travel status and away from the home office; and
(j) Pro hac vice admissions.
Sec. 719.36 Who at the Department must give advance approval?
If advance approval is required under this part, the advance
approval must be obtained from the Department counsel unless the
Department counsel indicates that approval of a request may only be
given by the contracting officer.
Sec. 719.37 Are there any special procedures or requirements regarding
subcontractor legal costs?
(a) The contractor must have a monitoring system for subcontractor
[[Page 63815]]
legal matters likely to reach $100,000 over the life of the matter. The
purpose of this system is to enable the contractor to perform the same
type of analysis and review of subcontractor legal management practices
that the Department can perform of the contractor's legal management
practices. The monitoring is intended to enable the contractor to keep
the Department informed about significant subcontractor legal matters,
including significant matters in litigation. The burden will be on the
prime contractor to be responsive to questions raised by the Department
concerning significant subcontractor legal matters.
(b) Subcontractor legal costs are not allowable without the prior
approval of Department counsel.
Sec. 719.38 Will costs covered by this part be subject to audit?
All costs covered by this part are subject to audit by the
Department, its designated representative or the General Accounting
Office. See Sec. 719.21.
Sec. 719.39 What happens when more than one contractor is a party to a
matter?
(a) If more than one contractor is a party in a particular matter
and the issues involved are similar for all the contractors, a single
legal counsel designated by Department counsel must either represent
all of the contractors or serve as lead counsel, when the rights of the
contractors and the government can be effectively represented by a
single legal counsel, consistent with the standards for professional
conduct applicable in the particular matter.
(b) If a contractor, having been afforded an opportunity to present
its views concerning joint or lead representation, does not acquiesce
in the designation of one retained legal counsel to represent a number
of contractors, or serve as lead counsel, then the legal costs of such
contractor are not reimbursable by the Department, unless the
contractor persuasively shows that it was reasonable for the contractor
to incur such expenses.
Subpart E--Department Counsel Requirements
Sec. 719.40 What is the role of Department counsel as a contracting
officer's representative?
(a) The individual selected as Department counsel for a contract
subject to the requirements of this part must be approved by the
contracting officer and the appropriate Chief Counsel, or General
Counsel if at Headquarters. The Department counsel must receive written
delegated authority from the contracting officer to serve as the
contracting officer's representative for legal matters. The contractor
will receive a copy of this delegation of authority.
(b) Actions by Department counsel may not exceed the
responsibilities and limitations as delegated by the contracting
officer. Delegated contracting officer representative authority may not
be construed to include the authority to execute or to agree to any
modification of the contract nor to attempt to resolve any contract
dispute concerning a question of fact arising under the contract.
Sec. 719.41 What information must be forwarded to the General
Counsel's Office concerning contractor submissions to Department
counsel under this part?
Department counsel must submit through the General Counsel
reporting system, the approved costs and status updates for all matters
involving retained counsel, including but not limited to contractor
litigation. The reports are to be received by the 15th day of the month
following the end of each quarter of the fiscal year.
Sec. 719.42 What types of field actions must be coordinated with
Headquarters?
(a) Requests from contractors for exception from this entire part
must be coordinated with Headquarters.
(b) Requests from contractors for approval to initiate or defend
litigation, or to appeal from adverse decisions, where legal issues of
first impression, sensitive issues, issues of significance to the
Department nationwide or issues of broad applicability to the
Government that might adversely impact its operations are involved must
be coordinated by Department counsel with the Deputy General Counsel
for Litigation or his/her designee.
(c) Department field counsel must inform the General Counsel of any
significant matter, as defined in this part, and must coordinate any
action involving a significant matter with the General Counsel, or his/
her designee, as directed by the General Counsel or his/her designee.
Appendix to Part 719--Guidance for Legal Resource Management
Management and Administration of Outside Legal Services
1.0 Initiation of Litigation
2.0 Defense of Litigation
2.1 Disapproval of Defensive Litigation
3.0 Notice to the Department of Special Interest Matters and
Litigation
4.0 Alternative Dispute Resolution
5.0 Cost Allowability Issues
5.1 Underlying Cause for Incurrence of Costs
5.2 Fees and Other Charges
6.0 Role of Department Counsel as the Contracting Officer's
Representative
7.0 Future Amendments to Guidance
Management and Administration of Outside Legal Services
This guidance is intended to assist contractors and the
Department's contracting officers and counsel in managing the costs
of outside legal services. This guidance is also intended to assist
retained legal counsel who provide services to the Department or to
the Department's contractors.
1.0 Initiation of Litigation
(A) The Insurance--Litigation and Claims clause (48 CFR (DEAR)
952.228-1 and 970.5204-31) in the Department's facility management
contracts provides that the contractor may not initiate litigation,
including appeals from adverse decisions, without the prior
authorization or approval of the Department's contracting officer,
who must consult with Department counsel. The following are the
minimum informational requirements for requests for authorization or
approval under that clause:
(1) Identification of the proposed parties;
(2) The nature of the proposed action;
(3) Relief sought;
(4) Venue;
(5) Proposed representation and reason for selection;
(6) An analysis of the issues and the likelihood of success, and
any time limitation associated with the requested approval;
(7) The estimated costs associated with the proposed action,
including whether outside counsel has agreed to a contingent fee
arrangement;
(8) Whether, for any reason, the contractor will assume any part
of the costs of the action;
(9) A description of any attempts to resolve the issues that
would be the subject of the litigation, such as through mediation or
other means of alternative dispute resolution; and
(10) A discussion of why initiating litigation would prove
beneficial to the contractor and to the Government.
(B) Department counsel should advise the contracting officer
concerning each request and must provide assistance to the
contracting officer in communicating the Department's decision to
the contractor.
2.0 Defense of Litigation
(A) In accordance with the Insurance-Litigation and Claims
clause, the contractor must immediately notify Department counsel of
the initiation of litigation against the contractor. Department
counsel will advise the contractor as to:
(1) Whether the defense of the litigation will be either
approved or disapproved or approval deferred and any conditions to
which approval is subject;
(2) Whether the contractor will be required to authorize the
Government to defend the action;
(3) Whether the Government will take charge of the action; or
(4) Whether the Government will receive an assignment of the
contractor's rights.
(B) When defensive litigation is approved at a later stage or at
the conclusion of the matter, reimbursement will be made for only
those expenses which would have been reimbursable as allowable costs
if the
[[Page 63816]]
Department had originally approved the defense of the litigation.
2.1 Disapproval of Defensive Litigation
If the Department disapproves in advance the costs of defense of
the litigation, the contractor will be notified of the disapproval
and that contract funds may not be used to fund the defense of the
litigation. The contractor will also be informed if the Department
changes its position. Contractor compliance with these policies and
procedures will not itself obligate the Department to reimburse
litigation costs or judgment costs when Departmental approval of the
litigation cost has been denied or deferred.
3.0 Notice to the Department of Special Interest Matters and
Litigation
The contractor's procedures under its Legal Management Plan
should include provisions for earliest possible notification to the
Department of the likely initiation of any ``significant matters''
such as class actions, cases involving radiation or toxic substance
exposure, cases involving problems concerning the safeguarding of
classified information, and any other matters involving issues which
the contractor has reason to believe are of general importance to
the Department or the government as a whole.
4.0 Alternative Dispute Resolution
Contractors are expected to evaluate all matters for appropriate
alternative dispute resolution (ADR) at various stages of an issue
in dispute, e.g., before a case is filed, pre-discovery, after
initial discovery and pre-trial. This evaluation should be done in
coordination with the Department's ADR liaison if one has been
established or appointed or the Department counsel if an ADR liaison
has not been appointed. Contractors, contractor counsel, and
Department counsel are also encouraged to consult with the
Department's Director of the Office of Dispute Resolution. The
Department anticipates that mediation will be the principal and most
common method of alternative dispute resolution. In exceptional
circumstances, arbitration may be appropriate. However, agreement to
arbitrate should generally be consistent with the Administrative
Dispute Resolution Act (incorporated in part at 5 U.S.C. 571, et
seq.) and Department guidance issued under that Act. When a decision
to arbitrate is made, a statement fixing the maximum award amount
should be agreed to in advance by the participants.
5.0 Cost Allowability Issues
A determination of cost reasonableness may depend on a variety
of considerations and circumstances. In accordance with 48 CFR (FAR)
31.201-3, no presumption of reasonableness is attached to the
incurrence of costs by a contractor. 10 CFR part 719 and this
Appendix provide contractors guidelines for incurring legal costs to
which adherence should result in a determination of allowability if
the cost is otherwise allowable under the contract.
5.1 Underlying Cause for Incurrence of Costs
While 10 CFR part 719 provides procedures for incurring legal
costs, the determination of the reason for the incurrence of the
legal costs, e.g., liability, fault or avoidability, is a separate
determination. This latter determination may involve, for example, a
possible finding of willful misconduct or lack of good faith by
contractor management in the case of third party liability, or a
finding of violation of a statute or regulation by the contractor in
a governmental proceeding. The reason for the contractor incurring
costs may be determinative of the allowability of the contractor's
legal costs. For example, legal costs incurred by a contractor in
defending actions brought by governmental agency may be covered by
the Major Fraud Act, 41 U.S.C. 256(k), implemented as a cost
principle at 48 CFR (FAR) 31.205-47. In such cases, the statute may
restrict the Department's authority to reimburse legal costs
incurred by the contractor regardless of the outcome of the action.
(B) In some cases, the final determination of allowability of
legal costs cannot be made until a matter is fully resolved. This is
particularly true in the case of legal defense costs covered by the
restrictions in the Major Fraud Act and is also a common problem in
cases covered by various whistleblower statutes and regulations. In
certain circumstances, contract and cost principle language may
permit conditional reimbursement of costs pending the outcome of the
legal matter. Whether the Department makes conditional
reimbursements or withholds any payment pending the outcome, legal
costs ultimately reimbursed by the Department must satisfy the
standards of cost reasonableness.
5.2 Fees and Other Charges
(A) Requests by retained legal counsel that are not in a direct
contract with the Department for fee increases should be sent in
writing to the contractor, who should review the request for
reasonableness. If the contractor determines the request is
reasonable, the contractor should seek approval for the request from
Department counsel and the contracting officer before it authorizes
any increase. Contractors should attempt to lock in rates for
partners, associates and paralegals for at least a two-year period.
(B) Rate and fee structures for retained legal counsel should
include all ``overhead'' and ``profit,'' and, therefore, any
additional overhead or profit charged by retained legal counsel
should be considered unreasonable. Costs listed in 10 CFR 719.33(c)
are usually incorporated into the rate or fee structure. Consultants
or experts hired by retained legal counsel who do not include any
overhead or similar charges, such as computer time, in their base
rate, must have those charges approved in advance by Department
counsel and the contracting officer. Time charged by law students
should be scrutinized for its efficiency and have prior
authorization.
(C) Travel time may be reimbursed at a full rate for the portion
of time during which retained legal counsel actually performs work
for which it was retained; any remaining travel time during normal
working hours shall be reimbursed at 50 percent, except that in no
event is travel time for time during which work was performed for
other clients reimbursable. Also, for long distance travel that
could be completed by various methods of transportation, i.e., car,
train, or plane, only the charge for the overall fastest travel time
will be considered reasonable.
(D) For costs associated with the creation and use of
computerized databases, contractors and retained legal counsel must
ensure that the creation and use of computerized databases is
necessary and cost-effective. Potential use of databases originally
created by the Department or its contractors for other purposes, but
that can be used to assist a contractor or retained legal counsel in
connection with a particular matter, should be considered and be
coordinated with Department counsel.
6.0 Role of Department Counsel as the Contracting Officer's
Representative
(A) An attorney from the field office or from Headquarters will
be appointed a contracting officer's representative by the cognizant
contracting officer. A contracting officer may designate other
Government personnel to act as authorized representatives for
functions not involving a change in the scope, price, terms or
conditions of the contract. This designation is made in writing and
contains specific instructions regarding the extent to which the
representatives may take action for the contracting officer, and
will prohibit the representative from signing contractual documents.
The contracting officer is the only person authorized to approve
changes in any of the requirements under the contract.
(B) Additional discussion of the authority and limitation of
contracting officers can be found at 48 CFR (FAR) 1.602-1, and for
contracting officer's representatives at 48 CFR (DEAR) 942.270-1. A
recently standardized clause, Technical Direction, 48 CFR (DEAR)
952.242-70, also discusses the responsibilities and limitations of a
contracting officer's representative.
7.0 Future Amendments to Guidance
The Office of the General Counsel may by memorandum provide
additional guidance to contractors. These memoranda will serve as
guidance for ``safe harbor'' practices for contractors procuring
outside legal services.
Attachment--Contractor Litigation and Legal Costs, Model Bill
Certification and Format
1. Certification
Bills or invoices should contain a certification signed by a
representative of the retained legal counsel to the effect that:
``Under penalty of law, [the representative] acknowledges the
expectation that the bill will be paid by the contractor and that
the contractor will be reimbursed by the Federal Government through
the U.S. Department of Energy, and, based on personal knowledge and
a good faith belief, certifies that the bill is truthful and
accurate, and that the services and charges set forth herein comply
with the terms of engagement and the policies set
[[Page 63817]]
forth in the Department of Energy's regulation and guidance on
contractor legal management requirements, and that the costs and
charges set forth herein are necessary.''
2. Model Bill Format
I. For Fees
Date of service Description of Name or Approved rate Time charged Amount (rate
service initials of x time)
(see note 1 below) attorney
----------------------------------------------------------------------------------------------------------------
II. For Disbursements
Date Description of Amount
disbursement
(see note 2 below)
----------------------------------------------------------------------------------------------------------------
Note 1--Description of Service: All fees must be itemized and
described in sufficient detail and specificity to reflect the
purpose and nature of the work performed (e.g., subject matter
researched or discussed; names of participants of calls/meetings;
type of documents reviewed).
Note 2--Description of Disbursement: Description should be in
sufficient detail to determine that the disbursement expense was in
accordance with all applicable Department policies on reimbursement
of contractor legal costs and the terms of engagement between the
contractor and the retained legal counsel. The date the expense was
incurred or disbursed should be listed rather than the date the
expense was processed. The following should be itemized: copy charge
(i.e., number of pages times a maximum of 10 cents per page); fax
charges (date, phone number and actual amount); overnight delivery
(date and amount); electronic research (date and amount);
extraordinary postage (i.e., bulk or certified mail); court
reporters; expert witness fees; filing fees; outside copying or
binding charges; temporary help (assuming prior approval).
Note 3--Receipts: Receipts for all expenses equal to or above
$75 must be attached.
2. The authority citation for Parts 928 and 952 continues to read
as follows:
Authority: 42 U.S.C. 7101, et seq.; 40 U.S.C. 486(c); 50 U.S.C.
2401, et seq.; 42 U.S.C. 2201.
PART 928--BONDS AND INSURANCE
3. Section 928.311-2 is added to read as follows:
Sec. 928.311-2 Agency solicitation provisions and contract clauses.
(Department coverage--paragraph (b)).
(b) Cost reimbursement contracts for an amount exceeding
$10,000,000, involving work performed at facilities owned or leased by
the Department, must use the clause at 952.228-1.
4. Part 944 is added to read as follows:
PART 944--SUBCONTRACTING POLICIES AND PROCEDURES
Authority: 42 U.S.C. 7101 et seq.; 40 U.S.C. 486(c); 50 U.S.C.
2401 et seq.; 42 U.S.C. 2201.
Sec. 944.102 Policy. (Department coverage--paragraph (c)).
(c) Contractor purchases of litigation and other legal services are
subject to the requirements in 10 CFR part 719 and this part 944 of 48
CFR (DEAR).
PART 952--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Section 952.228-1 is added to read as follows:
Sec. 952.228-1 Insurance--Litigation and Claims.
As prescribed at 928.311-2(b), insert the clause at 970.5204-31.
The contracting officer shall substitute these paragraphs of the
clause:
(e) (2) For liabilities (and reasonable expenses incidental to such
liabilities, including litigation costs) to third persons not
compensated by insurance or otherwise without regard to and as an
exception to the limitation of cost or limitation of funds clause of
this contract.
(h) In addition to the cost reimbursement limitations contained in
FAR 31.201-3 and DEAR 931.205-33, and notwithstanding any other
provision of this contract, the contractor's liabilities to third
persons, including employees but excluding costs incidental to workers'
compensation actions, (and any expenses incidental to such liabilities,
including litigation costs, counsel fees, judgments and settlements)
shall not be reimbursed if such liabilities were caused by contractor
managerial personnel's.
(j) (4) The term ``contractor's managerial personnel'' is
defined in the Property clause in this contract.
PART 970--DOE MANAGEMENT AND OPERATING CONTRACTS
6. The authority citation for Part 970 continues to read as
follows:
Authority: Atomic Energy Act of 1954 (42 U.S.C. 2201);
Department of Energy Organization Act (42 U.S.C. 7101, et seq.); and
National Nuclear Security Administration Act (50 U.S.C. 2401, et
seq.)
7. Section 970.5204-31 is amended by adding clause paragraph (m) to
read as follows:
Sec. 970.5204-31 Insurance--litigation and claims.
* * * * *
(m) Reasonable litigation and other legal expenses are allowable
when incurred in accordance with 10 CFR part 719, Contractor Legal
Management Requirements, which includes a requirement to submit a
Legal Management Plan within 60 days of execution of a contract, and
if not otherwise made unallowable by law or the provisions of this
contract.
10. Section 970.7103 is amended by adding paragraph (e) to read as
follows:
Sec. 970.7103 Contractor purchasing system.
* * * * *
(e) Contractor purchases of litigation and other legal services are
subject to the requirements in10 CFR part 719, 48 CFR (FAR) part 44 and
this subpart, 48 CFR (DEAR) 970.71.
[FR Doc. 00-26995 Filed 10-24-00; 8:45 am]
BILLING CODE 6450-01-P