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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: January 2, 2003

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

SOURCE: Federal Register, January 2, 2003, Vol. 68, No. 1, page 55

AGENCIES: Department of Energy (DOE)

ACTION: Final Rule

SYNOPSIS: DOE is finalizing, without change, the March 28, 2002, interim final rule that amended the DEAR to implement Executive Order 12829, National Industrial Security Program (NISP), and brought the DEAR into conformance with existing practices.

EDITOR'S NOTE: For more on the interim final rule, see the March 28, 2002, FEDERAL CONTRACTS DISPATCH "Department of Energy Acquisition Regulation (DEAR); National Industrial Security Program."

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.

EFFECTIVE DATE: The interim final rule was effective May 28, 2002.

FOR FURTHER INFORMATION CONTACT: Richard B. Langston, Office of Procurement and Assistance Policy (MA-51), 202-586-8247, e-mail: 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. Federal agencies are adopting the NISP as the uniform federal industrial security program within the limitations of their separate statutory requirements.

One of the most significant features of the NISP 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.

On March 28, 2002, DOE published an interim final rule that revised the DEAR to bring it into conformace with the NISP. The interim final rule specified the SF 328 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").

In addition, paragraph (b) of DEAR 904.7102, Waiver by the Secretary, was revised to grant authority to the secretary to waive the prohibition on contracting with foreign government-controlled entities for projects involving environmental restoration, remediation, or waste management at a DOE site, and paragraph (d) was revised to require the secretary to notify Congress whenever this authority is exercised.

No comments were submitted in response to the interim final rule, so DOE is finalizing the interim final rule without change.

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

Copyright 2003 by Panoptic Enterprises. All Rights Reserved.

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