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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: March 28, 2002

SUBJECT: Department of Energy Acquisition Regulation (DEAR); National Industrial Security Program

SOURCE: Federal Register, March 28, 2002, Vol. 67, No. 60, page 14873

AGENCIES: Department of Energy (DOE)

ACTION: Interim Final Rule

SYNOPSIS: DOE is amending the DEAR to implement Executive Order 12829, National Industrial Security Program (NISP), and to bring the DEAR into conformance with existing practices.

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 interim final rule is effective May 28, 2002. Comments on the interim final rule must be submitted no later than April 29, 2002.

ADDRESSES: Mail comments to Richard Langston, Office of Procurement and Assistance Policy (MA-51), U.S. Department of Energy, 1000 Independence Ave. SW, Washington, DC 20585, or send by e-mail to: richard.langston@pr.doe.gov.

FOR FURTHER INFORMATION CONTACT: Richard B. Langston, Office of Procurement and Assistance Policy (MA-51), 202-586-8247, or by e-mail to: richard.langston@pr.doe.gov.

SUPPLEMENTAL INFORMATION: Executive Order 12829, dated January 6, 1993, requires a uniform system for classifying, safeguarding, and declassifying national security information. DOE is making these changes to its security system to insure a uniform and simplified security system for contractors and others requiring access authorization for classified national security or restricted atomic energy information. Federal agencies are adopting the NISP as the uniform federal industrial security program within the limitations of their separate statutory requirements. This interim final rule amends the DEAR to implement the NISP.

According to the introduction of this interim final rule, one of the most significant features of the new rule 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 had its own questionnaire in DEAR 952.204-73, Foreign Ownership, Control or Influence Over Contractor, with more and somewhat different questions. A DOE clearance was not previously valid for a Department of Defense (DOD) contract and vice versa. 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, in most circumstances, accept each others' clearances on a reciprocal basis. Normally, a contractor interested in seeking a contract requiring a DOE clearance will already have either a DOD or a DOE clearance, and there will be no need to submit the detailed information required to establish a Facility Clearance. This new form is specified in revised paragraph (j) to DEAR 952.204-2, Security Requirements, and the revised DEAR 952.204-73, Facility Clearance (formerly "Foreign Ownership, Control or Influence Over Contractor").

The following are some of the other significant changes being made to the DEAR by this interim final rule:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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