[Federal Register Volume 68, Number 1 (Thursday, January 2, 2003)]
[Rules and Regulations]
[Pages 55-56]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32994]


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DEPARTMENT OF ENERGY

48 CFR Parts 904, 952, and 970

RIN 1991-AB42


Acquisition Regulation: Security Amendments To Implement 
Executive Order 12829, National Industrial Security Program

AGENCY: Department of Energy (DOE).

ACTION: Final rule.

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SUMMARY: The Department of Energy (DOE) is adopting as final without 
change an Interim Final Rule amending the Department of Energy 
Acquisition Regulation (DEAR) to ensure a uniform and simplified 
security system for contractors and others requiring access 
authorization for classified national security or restricted atomic 
energy information. The Final Rule also adopts the provision in the 
Interim Final Rule which allows the Secretary of Energy to waive the 
prohibition on award of a national security contract to an entity 
controlled by a foreign government if an environmental restoration 
requirement is involved.

DATES: This rule was effective May 28, 2002 pursuant to the interim 
final rule published March 28, 2002.

FOR FURTHER INFORMATION CONTACT: Richard B. Langston, Office of 
Procurement and Assistance Policy (ME-61), 202-586-8247; 
[email protected].

SUPPLEMENTARY INFORMATION: DOE is adopting as final the Interim Final 
Rule published on March 28, 2002, at 67 FR 14873 amending the DEAR to

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implement Executive Order 12829, National Industrial Security Program 
(January 6, 1993), and Section 828 of the National Defense 
Authorization Act for Fiscal Year 1997, and to bring the DEAR into 
conformance with existing practices.

Background

    Executive Order 12829 requires a uniform system for classifying, 
safeguarding, and declassifying national security information. The 
Federal agencies are adopting the National Industrial Security Program 
as the uniform Federal industrial security program within the 
limitations of their separate statutory requirements. Among the more 
significant features of the program is the use of a Standard Form 328, 
Certificate Pertaining to Foreign Interests, to gather information 
relative to foreign ownership, control or influence. Previously, DOE 
used a separate questionnaire of its own with more and somewhat 
different questions. Now all agencies will collect the same 
information. This feature will result in the greatest savings for both 
contractors and Federal agencies because agencies will accept each 
others' clearances on a reciprocal basis, in most circumstances. The 
Final Rule makes changes to the DEAR to bring it into conformance with 
the new program.
    The Final Rule also includes a provision (revised section 904.7102 
of the DEAR) to allow the Secretary of Energy to waive a prohibition on 
award of a national security contract to an entity controlled by a 
foreign government if an environmental restoration requirement is 
involved. Section 2536(b)(1)(B) of title 10 U.S.C. provides waiver 
authority for a contract for environmental restoration, remediation, or 
waste management at a DOD or DOE facility. For such a contract, the 
prohibition on award of a contract under a national security program to 
an entity controlled by a foreign government that requires access to a 
proscribed category of information to perform the contract may be 
waived only if the Secretary concerned determines that: (1) A waiver 
will advance the environmental restoration, remediation, or waste 
management objectives of the cognizant Department; (2) a waiver will 
not harm the national security interests of the United States; and (3) 
the entity to which the contract is to be awarded is controlled by a 
foreign government with which the cognizant Secretary has authority to 
exchange Restricted Data under section 144.c. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2164(c)).
    DOE invited comments from the public, which were to be submitted on 
or before April 29, 2002. No comments were received. DOE has determined 
that no changes are needed to the Interim Final Rule and adopts the 
DEAR amendments as final without change.
    Issuance of this Final Rule has been approved by the Office of the 
Secretary of Energy.

List of Subjects in 48 CFR Parts 904, 952 and 970

    Government procurement.

    Issued in Washington, DC, on December 20, 2002.
Richard H. Hopf,
Director, Office of Procurement and Assistance Management, OMBE, 
Department of Energy.
Robert C. Braden, Jr.,
Director, Office of Procurement and Assistance Management, National 
Nuclear Security Administration.

    For the reasons set forth in the preamble, the interim final rule 
amending 10 CFR Parts 904, 952, and 970 which was published at 67 FR 
14873 on March 28, 2002, is adopted as a final rule without change.

[FR Doc. 02-32994 Filed 12-31-02; 8:45 am]
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