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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: December 15, 2004

SUBJECT: Department of Energy Acquisition Regulation (DEAR); Make-or-Buy Plans

SOURCE: Federal Register, December 15, 2004, Vol. 69, No. 240, page 75017

AGENCIES: Department of Energy (DOE)

ACTION: Notice of Proposed Rulemaking (NPRM)

SYNOPSIS: DOE is proposing to amend DEAR Part 970, DOE Management and Operating Contracts, to eliminate the burden of make-or-buy analysis.

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: Comments on the NPRM must be received by January 14, 2005.

ADDRESSES: Comments on this NPRM may be submitted on the Federal eRulemaking Portal at http://www.regulations.gov; by e-mail to Irma.Brown@hq.doe.gov; by mail to Irma Brown, Mail Code ME-62, U.S. Department of Energy, 1000 Independence Avenue, SW, Washington, DC 20585.

FOR FURTHER INFORMATION CONTACT: Irma Brown, 202-586-8455, or e-mail to: Irma.Brown@hq.doe.gov.

SUPPLEMENTAL INFORMATION: In 1997, DOE established its make-or-buy policy to assist management and operating (M&O) contractors in categorizing all internal work activities under their contracts as "make" or "buy" activities. "Make" activities are core competencies critical to the mission success that are not available for outsourcing; "buy" activities are non-core work activities that provide strategic support to core competencies that are available for outsourcing. Under the policy, contractors use their make-or-buy plan to evaluate subcontracting opportunities and improve in-house performance. The objective of the make-or-buy policy is to require M&O contractors to operate DOES's laboratories, weapons production plants, and other facilities in a most cost effective and efficient manner.

After six years, all M&O contractors have approved make-or-buy plans in place. DOE has evaluated the operation of the make-or-buy policy and the effect that policy has had in achieving DOE's objectives, and has concluded that the make-or-buy program is not delivering the value to DOE commensurate with the costs of its implementation. Therefore, DOE is proposing to eliminate the requirement that M&O contractors prepare and maintain formal make-or-buy plans. DEAR Part 970 would be modified as follows:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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