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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: December 22, 2000

FROM: Barry McVay, CPCM

SUBJECT: Department of Energy Acquisition Regulation (DEAR); Rewrite of Part 970, DOE Management and Operating Contracts

SOURCE: Federal Register, December 22, 2000, Vol. 65, No. 247, page 80993

AGENCIES: Department of Energy (DOE)

ACTION: Final Rule

SYNOPSIS: DOE is rewriting DEAR Part 970 in its entirety to streamline the policies, procedures, provisions and clauses that are applicable to DOE's management and operating (M&O) contracts. The new DEAR Part 970 eliminates coverage that is obsolete or unnecessarily duplicates coverage contained in the Federal Acquisition Regulation (FAR); updates and revises prescriptions and text of certain clauses to provide greater flexibility for DOE contracting personnel to modify the text of these clauses and to eliminate the need for commonly used deviations; and adds six clauses.

EDITOR'S NOTE: The DEAR is available on the Internet at http://www.pr.doe.gov/dear.html.

For more on the two notices of proposed rulemaking (NPRMs) that formed the basis for this final rule, see the March 13, 2000, FEDERAL CONTRACTS DISPATCH "Department of Energy (DOE); Rewrite of DEAR Part 970, DOE Management and Operating (M&O) Contracts," and the June 14, 2000, FEDERAL CONTRACTS DISPATCH "Department of Energy Acquisition Regulation (DEAR); Cost Principles for Management and Operating (M&O) Contracts."

EFFECTIVE DATE: January 22, 2001.

FOR FURTHER INFORMATION CONTACT: Michael L. Righi, Office of Policy (MA-51), Department of Energy, 1000 Independence Avenue, SW, Washington, DC 20585; 202-586-8175 (telephone); 202-586-0545 (facsimile); e-mail: michael.l.righi@pr.doe.gov.

SUPPLEMENTAL INFORMATION: On March 13, 2000, DOE published a NPRM to rewrite and streamline DEAR Part 970. On June 14, 2000, DOE published a related NPRM to amend the DEAR to delete those cost principles and related provisions that are applicable to its M&O contracts that are adequately covered by the FAR. In response to the DEAR Part 970 rewrite NPRM, 14 respondents submitted 43 comments covering 22 separate topics, and in response to the cost principles NPRM, five respondents submitted 34 comments covering 24 separate topics. As a result of these comments, DOE is finalizing the proposed rules with minor changes.

In addition, DEAR Part 970 is reorganized and renumbered so that the coverage corresponds, to the extent practicable, with the FAR part, subpart, section, and subsection(s) being implemented or supplemented DEAR Part 970 (for example, the coverage in new DEAR Subpart 970.01, Management and Operating Contract Regulatory System, corresponds to that in FAR Part 1, Federal Acquisition Regulations System, and DEAR 970.0103, Publication and Codification, corresponds to FAR 1.303, Publication and Codification). Consequently, technical and conforming amendments to DEAR Part 970 and other DEAR parts are made.

Though several DEAR clauses have been deleted as duplicative of FAR clauses, and other DEAR clauses have been combined, six clauses are being added to the DEAR:

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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