This directive was reviewed and certified as current and necessary by (Enter Name),
(Enter Title) Director, Office of Management, Budget and Evaluation/Chief Financial Officer, XX-XX-XXXX. |
| U. S. Department of Energy |
ORDER
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DOE 5560.1A
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Approved:
5-8-85
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| SUBJECT: PRIORITIES AND ALLOCATIONS PROGRAM | |
1. PURPOSE. To establish policies and procedures for the administration of
the Department of Energy (DOE) priorities and allocations program for
industrial products, materials, and services.
2. CANCELLATION. DOE 5560.1, PRIORITIES AND ALLOCATIONS PROGRAM, of
11-5-82.
3. SCOPE. The provisions of this Order apply to all Departmental Elements
and contractors performing work for the Department as provided by law
and/or contract and as implemented by the appropriate contracting
officer.
4. REFERENCES. The following references are available from DOE, Property
and Equipment Management Division, MA-422, 1000 Independence Avenue,
SW., Washington, DC 20585.
a. Defense Production Act of 1950, of 9-8-50, as amended, 50 U.S.C.
Appendix 2061 et seq., Title I, which authorizes the President to
establish priorities and allocate materials and facilities in the
performance of contracts or orders necessary to promote the national
defense or maximize domestic energy supplies, and to require the
acceptance of such contracts or orders to ensure such priorities.
b. Executive Order 10480, "The Administration of the Defense
Mobilization Program," of 8-18-53, as amended, 50 U.S.C. Appendix
2153, which delegates to the Federal Emergency Management Agency
(FEMA) the President's national defense priorities and allocations
authorities in Title I, section 101(a) of the Defense Production Act
of 1950, as amended.
c. Title 44 CFR, Part 322, "Defense Mobilization Order 3, Defense
Production: Priorities and Allocations Authority," of 11-6-63,
which establishes FEMA policy guidance with regard to the use of the
priorities and allocations authority in Executive Order 10480.
d. Defense Priorities and Allocations System Delegation 2, "Delegation
of Authority to the Secretary of Energy," of 8-29-84, which
authorizes the Secretary of Energy to: (1) place rated contracts
and orders for the procurement of products, materials, and services
required for atomic energy construction, operations, and research
and development programs subject to conditions stated in the
delegation; and (2) find that specified material or equipment is
critical and essential to maximize domestic energy supplies.
e. Executive Order 11912, "Delegation of Authorities Relating to Energy
Policy and Conservation," of 4-13-76, which delegates to the
Secretary of Energy the President's priorities and allocations
authorities to maximize domestic energy supplies in Title I, section
101(c), of the Defense Production Act of 1950, as amended.
f. Title 44 CFR, Part 330, Defense Mobilization Order 13, "Policy
Guidance and Delegation of Authorities for use of Priorities and
Allocations to Maximize Domestic Energy Supplies in Accordance with
Subsection 101(c) of the Defense Production Act of 1950, as
amended," of 10-4-76, which establishes FEMA policy guidance with
regard to the use of the priorities and allocations authority in
Executive Order 11912.
g. Title 15 CFR, part 350, chapter III, subchapter B, of 8-29-84, which
contains the official texts of the regulation and related documents
of the defense priorities and allocations system. The regulation
provides for the priority production, scheduling, and preferential
treatment of contracts and orders placed in support of authorized
military and DOE atomic energy construction, operations, and
research and development programs, and programs which are determined
by DOE to maximize domestic energy supplies.
h. Title 10 CFR, Part 216, "Materials Allocation and Priority
Performance Under Contracts or Orders to Maximize Domestic Energy
Supplies," of 2-6-78, which contains the rules, regulations, and
procedures for implementing the DOE priorities and allocations
program for supplies of materials and equipment necessary to
maximize domestic energy supplies.
i. DOE/PR-0042, "Priorities and Allocations Support for Energy: Keeping
Energy Programs on Schedule," of 8-80, which describes priorities
and allocations support, and lists the criteria for granting rating
authority for programs which maximize domestic energy supplies.
j. Title 48 CFR Chapter 9, Department of Energy Acquisition Regulation,
Subparts 912.3, 950.212, and 970.5204-33, which explain the use of
and describe clauses for DOE participation in the industrial
priorities and allocations program for atomic energy programs and
programs which maximize domestic energy supplies.
k. Title 48 CFR Chapter 1, Federal Acquisition Regulation, Subpart
12.3, which implements the defense priorities and allocations system
regulation in prescribing policies and procedures relating to the
use of the defense priorities and allocations system in
solicitations and contracts.
l. Public Law 86-777, the ""Helium Act Amendments of 1960," of 9-13-60,
which provides the authority by which the Secretary of Interior
requires DOE to collect and report periodic helium requirements.
5. DEFINITIONS. In addition to the definitions contained in the defense
priorities and allocations system regulation and 1O CFR 216, the
following terms are defined for DOE.
a. Allotment. An authorization by a delegate agency of the amounts and
kinds of controlled materials which may be procured or used for
authorized programs during specified periods of time.
b. Authorized Program Identifications.
(1) E1 - Atomic energy construction and alteration for the account
of DOE.
(2) E2 - DOE atomic energy operations, including maintenance,
repair, and operating supplies.
(3) E3 - Expansion of privately owned facilities exclusively or
primarily for DOE atomic-energy program purposes.
(4) F1 - Energy exploration, production, refining, and
transportation.
(5) F2 - Conservation of energy supplies.
(6) F3 - Construction and maintenance of energy facilities.
c. Controlled Materials. The various shapes and forms of steel,
copper, aluminum, and nickel alloys, whether new, remelted, rerolled
or redrawn, as specified in schedule II, and as defined in schedule
III, of the defense priorities and allocations system regulation.
d. Defense Priorities and Allocations System. A regulation and
procedures that operate to direct the flow of material and products
to national defense programs and programs which maximize domestic
energy supplies; provides for preferential treatment by industry of
contracts and orders placed in support of the programs, and
maintains an administrative means of promptly mobilizing the total
economic resources of the Nation in the event of a national
emergency.
e. Delegate Agency. A Government agency authorized by delegation from
the Department of Commerce to place priority ratings on contracts or
orders needed to support authorized programs. DOE is a delegate
agency.
f. DO. The rating symbol assigned to all authorized programs which are
not DX programs.
g. DX. The rating symbol assigned only to authorized programs of the
highest national priority.
h. Eligible Contracts and Orders. Those contracts and orders for
products, materials, and services which may be rated in accordance
with the rules and exclusions stated in the defense priorities and
allocations system regulation and in the Defense Priorities and
Allocations System Delegation 2. Exclusions are specified in the
regulation in paragraph 350.18(b)(1) and (3) and in the delegation
of authority in Attachment A to the Statement of Conditions.
i. Five Thousand Dollars ($5,000) Exemption. An exemption from
mandatory provisions of the Defense Priorities and Allocations
System Regulation, concerning rated orders in an amount less than
$5,000, which may be applicable to delegate agencies and persons
receiving rated orders.
j. Maintenance, Repair, and Operating Supplies. Supplies which are
required for maintaining, repairing, and operating a facility,
including minor alterations necessary to maintain or repair but not
to increase the capacity of the facility.
k. National Defense. Programs for military and atomic energy
production or construction, military assistance to any foreign
nation, stockpiling, space, and directly related activity.
l. Person. Any individual, corporation, partnership, association, or
any other organized group of persons, including any agency of the
United States Government or any other government.
m. Program Determination. An authorization by FEMA of the amounts and
kinds of controlled materials which may be procured or used by or
for a delegate agency, or which may be allotted by a delegate
agency, for authorized programs during specified periods of time.
n. Rated Order or Contract. Services, products, or materials,
including controlled materials, which may be rated in accordance
with the defense priorities and allocations system regulation.
o. Rating. A prefix, either DO or DX, followed by an authorized
program identification symbol (e.g., DO-E1, DX-E2).
p. Rating Authority. The authority delegated to DOE in the Defense
Priorities and Allocations System Delegation 2, to place or
authorize others to place rated contracts and orders in support of
DOE Emergency Management Agency.
6. OBJECTIVES. To maintain, for both current and emergency conditions, a
priorities and allocations system program for the procurement of
industrial products, materials, and services necessary for the timely
completion of DOE atomic energy construction, operations, and research
and development programs and programs which are determined by DOE to
maximize domestic energy supplies.
7. BACKGROUND.
a. The Office of Industrial Resource Administration, Department of
Commerce, issues delegations of authority under the authority of the
Defense Production Act of 1950, as amended, Executive Order 10480,
and Executive Order 11912.
b. Defense Priorities and Allocations System Delegation 2, of 8-29-84,
delegates rating authority to the Secretary of Energy with authority
to redelegate, subject to the limitations stated in the delegation;
and delegates authority to make the findings required by section
101(c) of the Defense Production Act of 1950, as amended, that
specific supplies of materials and equipment are critical and
essential to programs which are determined to maximize domestic
energy supplies.
8. RESPONSIBILITIES.
a. Assistant Secretary, Management and Administration (MA-1) is
redelegated the authority contained in Defense Priorities and
Allocations System Delegation 2 by the Secretary of Energy.
b. Director of Procurement and Assistance Management (MA-4).
(1) Develops and maintains policies, standards, contract articles,
and procedures, and provides Headquarters direction,
coordination, and administration of DOE-wide activities
relating to the defense priorities and allocations system.
(2) Is redelegated the authority conveyed in Defense Priorities and
Allocations System Delegation 2, including authority to modify
responsibilities designated in this Order to Heads of
Departmental Elements, to the extent required to implement
policies and procedures issued by the Department of Commerce.
(3) Maintains the master list of programs designated as eligible
for the DX program rating, and notifies Heads of Departmental
Elements of the eligible programs.
(4) Reviews and coordinates with responsible organizations,
applications received from Heads of Field Elements for special
priorities assistance to construct or alter privately owned
facilities.
(5) Notifies Heads of Field Elements of approval of eligible
applications mentioned in paragraph 8b(4).
(6) Provides special priorities assistance on rated orders where
field elements and contractor efforts have not achieved
required deliveries.
(7) Requests Department of Commerce to provide special priorities
assistance on rated orders in cases where regular defense
priorities and allocations system procedures have been proved
ineffective.
(8) Assembles data for and prepares reports on DOE requirements for
controlled and other materials, including helium.
(9) Evaluates, through onsite reviews, field element performance of
the priorities and allocations program.
(10) Maintains liaison with FEMA and Department of Commerce as the
principal point of contact for DOE concerning policies,
procedures, and regulations of the defense priorities and
allocations system.
c. Heads of Departmental Elements.
(1) Ensure that members of their staff and contractors under their
jurisdiction are advised of the provisions of this Order, that
related procedures are followed, and that training required to
achieve these purposes is conducted.
(2) Appraise their contractors' operations under the defense
priorities and allocations system regulation and procedures to
ensure adherence to the priorities and allocations system
throughout the industrial chain so that authorized programs
are completed on schedule.
(3) Place rated contracts and orders as authorized in paragraph
3(a) of Defense Priorities and Allocations System Delegation 2.
(4) Assign to contractors and subcontractors the right to place
rated contracts and orders as indicated in paragraph 3(a) and
paragraph 4 of Defense Priorities and Allocations System
Delegation 2.
(5) Assign to contractors and subcontractors the right to place
rated contracts and orders for maintenance, repair, and
operating supplies.
(6) Authorize the placing of rated contracts and orders for
construction and production equipment, subject to the
limitations and conditions stated in paragraph 4 of Defense
Priorities and Allocations System Delegation 2.
(7) Ensure that contractors and subcontractors adhere to any
limitations of authority that may be applicable. In this
regard, see paragraph 8 of Defense Priorities and Allocations
System Delegation 2.
(8) Forward, with appropriate recommendations to the Director of
Procurement and Assistance Management, applications for special
priorities assistance to construct or alter privately owned
facilities received under terms of paragraph 4 of Defense
Priorities and Allocations System Delegation 2.
(9) Assign to contractors and subcontractors the right to place
rated contracts and orders when advised by the director of
Procurement and Assistance Management of the approval of an
application mentioned in subparagraph 8b(4).
(10) Apply or assign to others the authority to apply the DX program
rating when notified of the eligibility of a program by the
Director of Procurement and Assistance Management.
(11) Apply or assign to others the authority to apply the DX rating,
other than the DX program rating mentioned in subparagraph
(10), above, only when specifically authorized by the Director
of Procurement and Assistance Management.
(12) Submit estimated requirements for controlled and other
materials to the Director of Procurement and Assistance
Management.
(13) Appoints, in writing, a primary and an alternate priorities and
allocations program representative.
d. Priorities and Allocations Program Representatives.
(1) Provide advice and guidance for the organization's priorities
and allocations program.
(2) Coordinate and conduct the activities of the organization's
priorities and allocations program.
(3) Serve as principal contact points for the organization in
matters concerning priorities and allocations.
(4) Represent the organization, attend Department meetings
concerning priorities and allocations issues, and act as
liaison with DOE Headquarters, other DOE elements, and DOE
contractors in priorities and allocations matters affecting
their organization.
BY ORDER OF THE SECRETARY OF ENERGY:
WILLIAM S. HEFFELFINGER
Director of Administration
TABLE OF CONTENTS
CHAPTER I - GENERAL PAGE
l. Purpose ........................................................ I-1
2. Authority and Regulation ,...................................... I-1
3. Authorized DOE Programs ........................................ I-2
a. DOE Atomic Energy Programs ................................. I-2
b. Programs which Maximize Domestic Energy Supplies ........... I-2
4. Defense Priorities and Allocations System Essential Elements ... I-2
CHAPTER II - PRIORITY RATINGS
l. General ........................................................ II-1
2. DO Rating ...................................................... II-1
Figure II-1 - Production/Construction Equipment ...... II-3
3. DX Rating ...................................................... II-4
4. Rating of Contracts and Orders ................................. II-4
5. Acceptance and Filling of Rated Orders ......................... II-5
6. Extension of Ratings ........................................... II-6
7. Violations and Penalties........................................ II-6
CHAPTER III - CONTROLLED MATERIALS
l. Controlled Materials Purchase Orders ........................... III-1
2. Requirements ................................................... III-1
3. Procedures for Procurement of Controlled Materials ............. III-3
4. Accounting Guidelines .......................................... III-4
a. Headquarters ............................................... III-4
b. Field Elements.............................................. III-4
CHAPTER IV - OTHER CONTROLLED SUBSTANCES
1. Authority ...................................................... IV-1
2. Requirements ................................................... IV-1
CHAPTER V - PROGRAMS WHICH MAXIMIZE DOMESTIC ENERGY SUPPLIES
1. General ........................................................ V-1
2. Applying for Priorities and Allocations Support
for Energy Programs........................................... V-1
3. Processing Form PR-437 ......................................... V-2
4. Preferential Treatment ......................................... V-2
5. Special Priorities Assistance .................................. V-2
CHAPTER VI - SPECIAL PRIORITIES ASSISTANCE
1. General ........................................................ VI-1
2. Submission of a Request for Special Priorities Assistance ...... VI-1
3. Initiating a Request for Special Priorities Assistance ......... VI-1
4. Headquarters Processing of Requests ............................ VI-3
5. Requests for Other Assistance .................................. VI-3
CHAPTER VII - PRIORITY RATING ASSISTANCE FOR PRIVATELY OWNED FACILITIES
l. General ........................................................ VII-1
2. Criteria for Priority Rating Authority ......................... VII-1
3. Priority Rating Authority for Expansion of Privately
Owned Facilities ............................................. VII-1
a. Capital Additions - No Construction ........................ VII-1
b. Construction ............................................... VII-1
CHAPTER I
GENERAL
1. PURPOSE. It is DOE policy to provide guidance and procedures for DOE
participation in the industrial priorities and allocations program which
is governed by and conforms to the defense priorities and allocations
system regulation and delegation of authority from the Department of
Commerce. The defense priorities and allocations system and the
delegation of authority are designed to:
a. Require industry to accept and perform on, and allocate materials
and facilities to, contracts and orders for industrial products,
materials, and services in support of:
(1) DOE atomic energy construction, operations (including
maintenance, repair and operating supplies), and research and
development programs; and
(2) Programs which maximize domestic energy supplies.
b. Provide an administrative base from which to mobilize the total
national economy in the event of war or other emergency conditions.
2. AUTHORITY AND REGULATION.
a. Title 1 of the Defense Production Act of 1950, as amended,
authorizes the President to allocate materials and facilities, and
establish priorities for the acceptance and performance of contracts
and orders to:
(1) Promote the national defense (section 101(a)) as defined in
section 702(d) and in paragraph 5 of this Order.
(2) Maximize domestic energy supplies (section 101(c)).
b. The authority of the President under the Defense Production Act has
been delegated to the Director of FEMA who has redelegated the
authority to exercise and administer industrial priorities and
allocations to the Secretary of Commerce. FEMA has retained for
itself overall policy guidance and program coordination.
c. The administration of the industrial priorities and allocations
authority is accomplished through a series of delegations and a
regulation issued by the Department of Commerce. The Department of
Commerce has delegated limited authority to DOE concerning
priorities and allocations with respect to contracts and orders for
DOE atomic energy construction, operations, and research and
development programs, and programs which maximize domestic energy
supplies.
d. DOE, its contractors, and subcontractors are bound by all provisions
of the defense priorities and allocations system regulation and
delegation of authority issued by the Department of Commerce.
e. Title 10 CFR, Part 216, provides the procedures for implementing DOE
functions for the allocation of, or the priority performance under
contracts or orders relating to, supplies of materials and equipment
in order to maximize domestic energy supplies.
3. AUTHORIZED DOE PROGRAMS. Programs eligible for priorities and
allocations support, as authorized by FEMA, are DOE atomic energy
programs and programs which maximize domestic energy supplies.
a. DOE Atomic Energy Programs. All DOE atomic energy construction,
operations (including maintenance, repair, and operating supplies),
research and development programs, and in certain exceptional cases
for the expansion of privately owned facilities.
b. Programs Which Maximize Domestic Energy Supplies. Those energy
programs and projects, including DOE non-nuclear projects, which are
determined by DOE to maintain or further:
(1) Energy exploration, production, refining, or transportation; or
(2) Conservation of energy supplies; or
(3) Construction and maintenance of domestic energy supply
facilities.
4. DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM ESSENTIAL ELEMENTS.
a. The DOE is authorized to use priorities and allocations in support
of DOE atomic energy construction, operations (including
maintenance, repair, and operating supplies), research and
development programs and, in certain cases, for privately owned
facilities.
b. Atomic energy program contracts and orders placed by DOE or its
contractors are generally "rated," including orders for controlled
materials. Contracts and orders for DOE nonatomic energy programs
are ratable only on a case-by-case basis for specific supplies of
materials and equipment (see Chapter V).
c. DOE contracts and orders for materials and equipment required for
nonatomic energy programs or projects which are determined by
Headquarters to maximize domestic energy supplies may be placed as
rated orders if the materials and equipment are found to be
critical, essential, and scarce, and cannot be obtained by the
required delivery date without being placed as a rated order.
d. Ratings may not be used for the procurement of certain common-use
items in the Federal Supply Classification Groups and Classes as
listed in Attachment A to the Statement of Conditions of Defense
Priorities and Allocations System Delegation 2. However, in the
event procurement difficulties are encountered which threaten timely
delivery, special assistance may be obtained from Headquarters, in
accordance with the procedures outlined in Chapter V.
e. DOE develops and furnishes FEMA with quarterly statements of
estimated requirements for controlled materials for direct purchase
by DOE and its operating contractors, for incorporation in items
specifically designed and manufactured to authorized DOE atomic
energy program specifications or used in construction for authorized
DOE atomic energy programs.
f. FEMA issues a program determination making allotments of controlled
materials and authorizing DOE to make allotments of controlled
materials to support authorized DOE programs.
g. At this time, DOE does not make allotments of controlled materials
to its field elements or contractors for DOE atomic energy
construction and operations programs. DOE atomic energy contractors
procure controlled materials the same as products and materials that
are not controlled materials according to the procedures in the
defense priorities and allocations system. However, see Chapter III
for accounting guidelines for controlled materials.
h. Participants in any transaction covered by the defense priorities
and allocations system must make, and preserve for at least 3 years
thereafter, accurate and complete records of such transactions.
CHAPTER II
PRIORITY RATINGS
1. GENERAL.
a. Most DOE contracts and orders for industrial products, materials,
and services necessary or appropriate to promote DOE atomic energy
construction, operations, and research and development programs are
to be rated. Use of priority ratings is authorized for all ratable
contracts and orders. Contracts and purchase orders placed with or
through other Government agencies are rated. Although the use of
ratings generally applies to purchases, ratings may be used for
leases under the conditions specified in the defense priorities and
allocations system regulation.
b. There are two types of priority ratings: DO and DX. All DO ratings
have equal preferential status and take precedence over all unrated
orders. All DX ratings have equal preferential status, but DX rated
orders take precedence over DO rated orders and all unrated orders.
The DX rating is used for designated DOE atomic energy construction
and operations programs of the highest national urgency.
2. DO RATING.
a. DOE atomic energy construction, operations, (including maintenance,
repair and operating supplies), and research and development
contracts and orders are generally identified by applying the prefix
DO and the appropriate authorized program identification symbol:
E1, Construction; E2, Operations, including maintenance, repair and
operating supplies; or E3 privately owned facilities.
b. Heads of Field Elements, or their delegates, may use or authorize
their contractors or subcontractors to use the DO rating on DOE
atomic energy construction, operations, (including maintenance,
repair, and operating supplies), and research and development
contracts and orders for all products, materials, and services
except for the following:
(1) Items listed in section 350.18(b)(1) and (3) of the defense
priorities and allocations systems regulation;
(2) Items contained in the list of Federal Supply Classification
Groups and Classes in Attachment A to the Statement of
Conditions to Defense Priorities and Allocations System
Delegation 2;
(3) DOE nonatomic energy programs except those which are determined
to maximize domestic energy supplies (see Chapter IV); and
(4) Production or construction equipment or items to be used for
the manufacturer of production equipment. Figure II-1 provides
a sample of the kinds of equipment which may be included in
these categories.
____________________________________________________________________________
| Bits, air-drill, removable. Flushers, street. |
| Bituminous equipment: Graders: |
| Asphalt plants. Elevating. |
| Distributors. Pull-type. |
| Heaters. Self-propelled. |
| Kettles. Maintainers. |
| Mixers. Grader-mounted equipment. |
| Pavers. Grapples, crane. |
| Spreaders, aggregate. Haulage, units, off-highway: |
| Blades (cutting edges): Rear-dump trucks. |
| Grader. Wheel tractors 70 hp. and over. |
| Dozer. Hoists, contractors. |
| Scraper. Hoppers, concrete equipment. |
| Snow plow. Loaders: |
| Buckets, concrete equipment. Bucket, elevating. |
| Buckets and dippers for cranes, Elevating, shoulder-type. |
| shovels, or draglines. Tractor-mounted. |
| Catch basin cleaners. Placers, concrete equipment. |
| Chutes, concrete equipment. Rock drills, air, including |
| Concrete equipment: drifters and stoppers. |
| Batchers, batch plants. Rollers and compactors, all types.|
| Bin. Rippers, rooters, and scarifiers, |
| Curb and gutter machines. drawn. |
| Cutting machines, except masonry. Scrapers, self-propelled and pull.|
| Dryers, aggregate. Snowplows, all types. |
| Finishers. Sweepers and leaf collectors, |
| Forms, metal, reusable. self-propelled and drawn. |
| Graders, sub and fine. Teeth: |
| Heaters. Bucket. |
| Jacks, slab-raising. Ripper. |
| Mixers, including mortar. Scarifier. |
| Pavers. Tractors, crawler. |
| Spreaders. Tractor-mounted equipment: |
| Towers. Dozer. |
| Vibrators. Power-control units. |
| Cranes, shovels, and draglines: Cranes. |
| Cranes, construction. Shovels. |
| Cranes, locomotive and rail-truck Side-booms. |
| mounted. Backbones. |
| Cranes, railway, wrecking. Loaders. |
| Crane, shovel, and dragline Scarifiers. |
| attachments. Winches. |
| Draglines, construction. Draglines. |
| Draglines, walking. Traffic line marking equipment. |
| Pipe drivers and hammers. Trailers, construction, |
| Shovels, power. off-highway: |
| Crushing, screening, and washing Bottom, rear, and side dump, |
| equipment (portable): crawler or wheel-type. |
| All types, except food. Logging arches. |
| Derrick, except oil and gas well. Trenchers, all types. |
| Disc, wheel-mounted or harrow, Well points, construction. |
| Dredging machinery, except dredge Wheels, crawler. |
| pipe. |
| Drilling equipment: |
| Augers, earth, power-driven. |
| Pipe pushers, power-driven. |
| Tools, air, contractors. |
|__________________________________________________________________________|
FIGURE II-1
Production/Construction Equipment
c. If a rated order is likely to be delayed because a person is unable
to obtain normally unrateable construction or production items, the
person may request the authority to use a priority rating in
ordering the needed items. In this case a DO rating shall be used
on contracts and orders for construction and production equipment as
follows:
(1) When purchased for use in the process of construction, field
elements and contractors shall apply the priority rating DO-E1
when the construction equipment will become the property of DOE
and the Head of the Field Element determines in each case that:
(a) Within a reasonable distance from the site where the
equipment is required, existing equipment is being used to
the fullest extent to perform on rated order(s).
(b) All reasonable efforts have been made to obtain new or
used equipment within the DOE atomic energy complex.
(c) All reasonable efforts have been made to obtain new or
used equipment on an unrated basis.
(2) When purchased for use as production equipment to be installed
as part of the initial construction of a project, field
elements and contractors shall use the rating DO-E1.
(3) When purchased for use as production equipment in a completed
DOE project, field elements and contractors shall apply the
rating DO-E2.
3. DX RATING. Provisions of Defense Priorities and Allocations System
Delegation 2 authorize DOE to use the DX rating for those programs
designated by FEMA as eligible for such rating. A list of eligible DX
programs is maintained by the Procurement and Assistance Management
Directorate. (This list is classified and cannot be included as a part
of this Order.) The Director of Procurement and Assistance Management
informs the Heads of Field Elements, in writing, of programs to which
the DX rating is applicable. The authority to use or authorize others
to use the DX rating is subject to the limitations specified for DO
ratings on page II-1, paragraph 2.
4. RATING OF CONTRACTS AND ORDERS. A DOE atomic energy construction,
operations (including maintenance, repair, and operating supplies), or
research and development contract or order, or energy contract or order,
is considered to be rated when the contract or order includes the
following items:
a. The prefix DO or DX together with the appropriate authorized program
identification symbol: E1, E2, E3, F1, F2, or F3.
b. A statement reading substantially as follows:
"This is a rated order certified for national defense use and you
are required to follow all the provisions of the Defense Priorities
and Allocations System Regulation (15 CFR 350)."
c. The required delivery date(s).
d. An authorized signature.
5. ACCEPTANCE AND FILLING OF RATED ORDERS.
a. All rated orders must be accepted by suppliers except under the
following conditions:
(1) The person placing the order is unwilling or unable to meet the
supplier's regularly established terms of sale or payment.
(2) The order is for a product or materials not usually made or
supplied or for a service not usually performed.
(3) The order is tendered to a person for a product or material
which he produces or acquires only for his own use, and he has
not filled any orders for that product or material within the
past 2 years.
(4) The order is for a product or material produced by the person
tendering the rated order or for a service performed by the
person tendering the rated order.
(5) The order is received after commencement of the applicable lead
time as prescribed by the Department of Commerce, except that a
DX-rated order must be accepted without regard to lead time.
(Lead time provisions apply only to controlled materials and
metalworking machines.)
(6) The applicable set-aside has been reached by the supplier or
would be exceeded by acceptance, except that a DX-rated order
must be accepted without regard to such set-aside. (Set-aside
provisions apply only to controlled materials and metalworking
machines.)
(7) If acceptance or performance of the order would violate any
other regulation or order of the Department of Commerce.
b. If a supplier refuses to accept a rated order, the supplier, upon
written request of the prospective purchaser, must promptly provide
reasons, in writing, for rejecting the order.
c. In general, all rated orders must be filled by the required delivery
date. If the supplier's schedule of operations prevents this, the
supplier must give precedence as follows:
(1) DX-rated orders must be given precedence over DO-rated orders
or unrated orders, and DO-rated orders must be given precedence
over unrated orders;
(2) If there is a conflict between rated orders of equal
preferential status, the supplier must give precedence in
accordance with the sequence of their receipt;
(3) If there is a conflict between rated orders of equal
preferential status received on the same date, the supplier
must give precedence to the order which has the earliest
required delivery date.
6. EXTENSION OF RATINGS.
a. Contractors or suppliers who receive rated contracts or orders are
required by the defense priorities and allocations system to extend
the priority rating and all other items of a rated order to their
contractors and suppliers throughout the industrial chain. This
extension requirement is optional in the case of any individual
purchase order of less than $5,000.
b. Contractors or suppliers who extend priority ratings should ensure
that the supplier receiving the rated order or contract provides the
preferential treatment called for in the priorities and allocations
system regulation.
7. VIOLATIONS AND PENALTIES. Willful violation of the provisions of Title
1 or sections 705 or 707 of the Defense Production Act, the defense
priorities and allocations system regulation, or an official action is a
crime, and if convicted a person may be punished by fine or
imprisonment, or both.
CHAPTER III
CONTROLLED MATERIALS
1. CONTROLLED MATERIALS PURCHASE ORDERS.
a. The defense priorities and allocations system requires DOE and all
DOE atomic energy contractors and subcontractors to place rated
orders for any controlled material (as distinct from a product
containing controlled material) required for DOE atomic energy
construction, operations (including maintenance, repair, and
operating supplies), and research and development programs. Use of
rated orders is mandatory for all orders for controlled materials
except for orders of less than $5,000, on which it is optional. A
rated order for controlled material takes precedence over all other
orders for controlled materials.
b. Under the defense priorities and allocations system, DOE is a
delegate agency for the eight kinds of controlled materials
(categorized below) which are in the shapes and forms listed in
schedule II to the defense priorities and allocations system
regulation.
(1) Carbon steel (including wrought iron);
(2) Alloy steel (except stainless steel);
(3) Stainless steel;
(4) Copper and copper-base alloy brass mill products;
(5) Copper wire mill products;
(6) Copper and copper-base alloy foundry products and powder;
(7) Aluminum; and
(8) Nickel alloys.
2. REQUIREMENTS.
a. Field Elements shall:
(1) Develop estimated quarterly requirements for the eight kinds of
controlled materials to be purchased by either DOE or its
contractors in support of DOE atomic energy construction,
operations (including maintenance, repair and operating
supplies), and research and development programs. These
requirements are total requirements, including quantities
already ordered, and are developed separately for construction
and for operations, including maintenance, repair, and
operating supplies in the shapes and forms specified on Form
ITA-9048. Requirements must be reported to Headquarters,
Procurement and Assistance Management, MA-4, in accordance with
the timing that deliveries are required from the mills or other
suppliers of controlled materials.
(2) Estimate requirements for DOE atomic energy construction,
operations (including maintenance, repair, and operating
supplies), and research and development programs. Estimates
should be based on the initiation and continuation of operating
programs and construction projects, in accordance with existing
budget allowances and programs projected for inclusion in
future fiscal year budget submissions. It is recognized that
final designs may not have been determined. However, every
effort should be made to prepare the best forecasts for each
quarter.
(3) Collect requirements estimates for atomic energy construction
and operations (including maintenance, repair, and operating
supplies), and research and development programs from their
contractors to the extent necessary to ensure reliability.
Field elements must review these estimates to ensure that they
are as realistic as possible. Field elements must then combine
the requirements data submitted by the contractors and submit
two reports on Form ITA-9048:
(a) A Field Organization Summary for Construction (E1
Programs); and
(b) A Field Organization Summary for Operations (E2 Programs).
(4) Forward the summaries to the Director of Procurement and
Assistance Management, Division of Property and Equipment
Management, MA-422, semiannually by the 8th workday of May and
the 8th workday of November. The May report should reflect
third and fourth quarter current calendar year requirements and
first and second quarter next calendar year requirements. The
November report should reflect the four quarter requirements
for the next calendar year. The summaries must be accompanied
with a transmittal Memorandum explaining in detail significant
changes, if any, from the previous report. During the
semiannual period between requirements reports, each field
element will advise Headquarters of significant changes in
levels of requirements to permit modification, if necessary, in
set-asides at the mills.
b. Headquarters.
(1) The Director of Procurement and Assistance Management compiles
and submits to FEMA controlled material summaries of DOE field
elements and advises FEMA of significant interim changes as
they are received.
(2) On the basis of estimated requirements for the eight kinds of
controlled materials, the Director of Procurement and
Assistance Management receives a program determination from
FEMA.
3. PROCEDURES FOR PROCUREMENT OF CONTROLLED MATERIALS. DOE field elements,
their contractors, subcontractors, and suppliers acquire controlled
materials in the quantities necessary for the timely completion of DOE
atomic energy construction, operations (including maintenance, repair,
and operating supplies), and research and development programs. DOE and
its atomic energy contractors are required to follow the procedures of
the defense priorities and allocations system in obtaining controlled
materials and to account, if requested, for their usage.
a. Field elements and their atomic energy contractors and
subcontractors place rated orders for all eight kinds of controlled
materials with producers, distributors, or other suppliers.
b. An order for controlled materials is considered to be a rated order
when the purchase order includes the following elements:
(1) The prefix DO or DX together with the appropriate authorized
program identification symbol: E1, E2, E3, F1, F2, or F3.
(2) A statement reading substantially as follows:
"This is a rated order certified for national defense use and
you are required to follow all the provisions of the Defense
Priorities and Allocations System Regulation (15 CFR 350)."
(3) The required delivery date(s).
(4) An authorized signature.
c. Rules for the acceptance and rejection of rated orders are included
in the defense priorities and allocations system regulation.
4. ACCOUNTING GUIDELINES.
a. Headquarters.
(1) DOE is required under the defense priorities and allocations
system to account for allotments of controlled materials
received from FEMA.
(2) The Director of Procurement and Assistance Management maintains
the central DOE accounts for all allotments received from FEMA.
These accounts reflect the following for each kind of
controlled material by calendar year quarters:
(a) Allotments received from FEMA;
(b) Individual adjustments to allotments; and
(c) Current balances.
b. Field Elements. Under the defense priorities and allocations
system, all prime consumers (e.g., DOE field elements and
contractors) do not receive allotments or suballotments from
Headquarters. Therefore, field elements and contractors are not
required to submit reports concerning usage of controlled materials
to Headquarters. However, field elements and contractors are
required to maintain internal records of controlled materials usage
and keep the information available as part of the DOE industrial
mobilization preparedness program.
CHAPTER IV
OTHER CONTROLLED SUBSTANCES
1. AUTHORITY. The Helium Act Amendments of 1960 gives the Secretary of
Interior the authority to require that DOE gather and report periodic
helium requirements to the Department of Interior. As a result, the
Department of Interior has imposed quarterly reporting requirements on
DOE.
2. REQUIREMENTS. To assist Headquarters in providing the necessary data to
the Department of Interior, Heads of Field Elements are responsible for
developing estimated annual helium requirements to be purchased by
either DOE or its contractors in support of atomic energy construction,
operations (including maintenance, repair, and operating supplies), and
research and development programs. These requirements are to be
submitted by the types specified on DOE F 4200.42, "Estimated
Requirements for Selected Materials." Estimated requirements for
construction and operations must be collected by field elements from
their contractors to ensure reliability. Field elements must review
these requirements to ensure that they are as realistic as possible,
consolidate the requirements and forward them to the Director of
Property and Equipment Management Division, Procurement and Assistance
Management Directorate, MA-422, annually by the 8th workday of March.
The report should reflect the 2 succeeding fiscal years. The
requirements must be accompanied by a transmittal Memorandum explaining
in detail significant changes, if any, from the previous report.
CHAPTER V
PROGRAMS WHICH MAXIMIZE DOMESTIC ENERGY SUPPLIES
1. GENERAL.
a. Prior to the Energy Policy and Conservation Act of 1975 (Public Law
94-163), purchase orders for nonatomic energy programs were not
authorized to be placed as rated orders. The Energy Policy and
Conservation Act amended the Defense Production Act of 1950 with a
new section 101(c) which provides for the allocation of or the
priority performance under contracts or orders (other than contracts
of employment) relating to supplies of materials and equipment in
order to maximize domestic energy supplies.
b. Priorities and allocations support for energy programs and projects
must be applied for on a case-by-case basis (not for all
procurements for the energy project involved) only for the material
and equipment which cannot be obtained on time in order to keep the
project on schedule.
c. Rated orders for energy programs are equivalent to those for DOE
atomic energy production and construction programs. Both are under
the jurisdiction of the defense priorities and allocations system
regulation and procedures. (See Chapters II and III of this Order
for the proper placement of rated orders.)
d. Priorities and allocations support for energy programs is described
in 10 CFR, Part 216, "Materials Allocation and Priority Performance
Under Contracts or Orders to Maximize Domestic Energy Supplies," and
in the publication DOE/PR-0042, "Priorities and Allocations Support
for Energy: Keeping Energy Programs on Schedule."
2. APPLYING FOR PRIORITIES AND ALLOCATIONS SUPPORT FOR ENERGY PROGRAMS.
a. Any person who requires priorities and allocations support as
provided for by section 101(c) of the Defense Production Act may
submit an application directly to the Director of Procurement and
Assistance Management, Division of Property and Equipment
Management, ATTN: MA-422.
b. The application shall be made on form PR-437, "Request for Priority
Rating for Energy Programs." The application requests DOE and the
Department of Commerce to determine if the energy project involved
maximizes domestic energy supplies and to find if the material or
equipment identified in the application is scarce, critical, and
essential, and cannot be obtained on time without priorities and
allocations support.
c. Form PR-437 must be completed in sufficient detail to clearly
demonstrate the need for priorities and allocations support. It is
recommended that Title 10 CFR, Part 216, and DOE/PR-0042 be
thoroughly reviewed prior to requesting priorities and allocations
support. Further, any supplemental or backup material which
supports the request for priorities and allocations authority should
be attached to the Form PR-437.
3. PROCESSING FORM PR-437. Each request shall be reviewed and coordinated
with the appropriate Headquarters Element (e.g., Office of Policy,
Safety, and Environment; General Counsel; Fossil Energy; Nuclear Energy;
Conservation and Renewable Energy). Each request for priorities and
allocations support will be reviewed for completeness and accuracy
ensuring the information presented is sufficient to satisfy the
established criteria for granting priority rating authority. Based on
DOE and Department of Commerce analysis, the Director of Procurement and
Assistance Management shall notify the applicant in writing, either
granting or denying priorities and allocations support.
4. PREFERENTIAL TREATMENT.
a. Any person who is authorized by DOE to use priorities and
allocations authority for an energy project is subject to the
obligations and privileges of the provisions of the defense
priorities and allocations system.
b. Purchase orders or contracts placed under the authority of section
101 (c) of the Defense Production Act are equal to those placed in
support of DOE atomic energy production and construction programs
and must be given the same preferential treatment by suppliers
throughout the industrial chain.
5. SPECIAL PRIORITIES ASSISTANCE. If a rated order is placed in support of
a program which maximizes domestic energy supplies and the required
delivery date will not be met, special priorities assistance is
available as described in Chapter VI of this Order.
CHAPTER VI
SPECIAL PRIORITIES ASSISTANCE
1. GENERAL. In some instances, the regular procedures of the defense
priorities and allocations system may be ineffective in enabling DOE and
authorized contractors to obtain timely deliveries and keep authorized
atomic energy programs on schedule. To permit atomic energy programs to
proceed or be completed on schedule, special priorities assistance is
available from the Procurement and Assistance Management Directorate.
Special priorities assistance personnel will contact the supplier to
resolve the problem. The Department of Commerce will be requested to
issue a directive if necessary to obtain compliance with the defense
priorities and allocations system.
2. SUBMISSION OF A REQUEST FOR SPECIAL PRIORITIES ASSISTANCE.
a. Submission of a request to Headquarters for special priorities
assistance is appropriate only after efforts by the contractor and
the field element are unsuccessful in resolving problems. Examples
of potential problems are as follows:
(1) A supplier has refused to accept a rated order.
(2) A supplier has refused to meet or approach required delivery
dates.
(3) A supplier has accepted a rated order which is critical for
completion of a program, but there is reasonable doubt that the
supplier will meet the required delivery date.
b. Every rated order is entitled to preferential treatment over
nonrated orders and any supplier who fails to preferentially
schedule such orders is in violation of the Defense Production Act
of 1950, as amended, and the defense priorities and allocations
system regulation.
3. INITIATING A REQUEST FOR SPECIAL PRIORITIES ASSISTANCE.
a. The purpose of the special priorities assistance program is to
provide timely delivery of industrial products, materials, and
services for programs experiencing or anticipating slippages in
delivery schedules. Therefore, field elements and contractors must
make every effort to identify delivery problems as early as possible
and take prompt action to seek a solution.
b. Having determined that a solution cannot be reached at the
contractor or the field element level, and that special priorities
assistance from Headquarters is necessary, the field element and
contractor must confirm that:
(1) A written order or contract containing all items of a valid
rated order has been given to the supplier; and
(2) A written order containing all items of a valid rated order has
been furnished by a supplier to a subvendor if the request for
assistance involves a subvendor in the procurement chain.
c. Requests for special priorities assistance may be initiated at any
level in the procurement chain (e.g., field elements, operating
contractor, subcontractor, vendor). Requests for assistance sent to
Headquarters, Property and Equipment Management Division, MA-422,
must be endorsed and forwarded by the appropriate field element
through the priorities and allocations program representative, and
made on Form ITA-999, "Request for Special Priorities Assistance" or
TWX. Facsimiled copies of the form are acceptable.
d. Under the circumstances of extreme urgency the request for special
priorities assistance may be initiated by a telephone call from the
DOE field element to Headquarters, Division of Property and
Equipment Management personnel. However, telephone requests will
not be entertained directly from a DOE contractor, without DOE field
element involvement. In the instance where a telephone call
initiates a request, the Form ITA-999 or TWX must be received by
Headquarters within 48 hours of the telephone call initiating the
request.
e. Offices using Form ITA-999 must complete block 18, FOR USE OF
GOVERNMENT DEPARTMENT OR AGENCY ENDORSING THIS REQUEST (FIELD),
explaining in sufficient detail the actions taken by the field to
resolve the applicant's problem. In addition, block 18(c) "By whom"
must contain the signature of the director of the DOE contracting
activity at that field location or the area manager in the case of
an area office, as an indication of his/her approval of the
applicant's request for assistance, as well as a verification that
all field element efforts and avenues toward resolution have been
exhausted prior to requesting Headquarters assistance.
f. Requests submitted by TWX shall contain the following information as
a minimum:
(1) Name, address, and telephone number of applicant who placed the
order with a supplier.
(2) Name and address of the supplier.
(3) Order number, date, and rating.
(4) Supplier's in-house shop order number, if obtainable.
(5) Identification of item or items ordered.
(6) Dollar value or approximate dollar value of orders.
(7) Name of supplier's representative or contact.
(8) Telephone number of supplier's representative or contact,
including the area code.
(9) Date that delivery is required.
(10) Date that supplier stated the order will be shipped.
(11) Reason given by supplier for inability to meet the required
delivery date.
(12) Detail of actions taken by the field element to resolve the
applicant's problem.
(13) Signature of the senior procurement official at the field
element.
4. HEADQUARTERS PROCESSING OF REQUESTS.
a. Upon receipt of a request for assistance, Division of Property and
Equipment Management, MA-422, personnel shall take action with the
supplier(s) to resolve the problem, obtaining such additional
information from the field element's priorities and allocations
program representative/or contractor as may be required.
b. If MA-422 is unable to resolve a problem with a supplier, assistance
is available from the Department of Commerce, who may request
additional information from the field element or contractor.
c. The Property and Equipment Management Division shall inform the
field element and contractor of all correspondence and action taken.
5. REQUESTS FOR OTHER ASSISTANCE. Assistance also may be requested by
field elements and contractors or other Departmental elements on such
matters as locating and obtaining items of equipment and supplies,
including those which may be available from Government sources. These
requests will be processed by priorities and allocations personnel in
the Division of Property and Equipment Management, MA-422, or directed
to the appropriate organization for action.
CHAPTER VII
PRIORITY RATING ASSISTANCE FOR PRIVATELY OWNED FACILITIES
1. GENERAL. In certain exceptional cases, expansion of privately owned
facilities, for which construction and/or capital additions are required
exclusively or primarily for DOE atomic energy program purposes, may be
eligible for priority rating authority from DOE. A supplier or
contractor makes application for such authority by submitting to the
responsible field element a formal written request, accompanied when
appropriate by a completed form ITA-9048. Privately owned facility
projects for which rating authority is approved will be identified by
the program identification symbol E3.
2. CRITERIA FOR PRIORITY RATING AUTHORITY. The following criteria are
provided as guidance for approval of priority rating authority for
privately owned facilities:
a. The desired material, product, or service required by DOE from the
applicant cannot be procured from another qualified source that does
not require expansion. In determining equal qualification, such
items as cost, raw material supply, location, and transportation may
be considered.
b. The applicant is unable to locate a satisfactory subcontracting
source to supply the parts or components for which the rating
authority is requested.
c. The applicant has made a reasonable effort to locate existing tools,
equipment, or facilities which could be acquired on a temporary
basis to meet atomic energy program delivery requirements.
d. The expansion will be devoted exclusively or primarily to DOE
purposes.
e. The applicant cannot, without priority rating authority for the
proposed expansion, fulfill atomic energy requirements on time.
3. PRIORITY RATING AUTHORITY FOR EXPANSION OF PRIVATELY OWNED FACILITIES.
a. Capital Additions - No Construction. Heads of Field Elements are
authorized to approve formal requests for priority rating authority
for capital additions (no construction) subject to the criteria in
paragraph 2 above. In cases determined to be eligible by Heads of
Field Elements, the right to use the rating DO-E3 is assigned to the
applicant.
b. Construction.
(1) The Director of Procurement and Assistance Management, MA-4,
must approve priority rating authority when the expansion of
privately owned facilities involves construction. In these
cases, Heads of Field Elements submit to MA-4 a Memorandum
setting forth information on the extent to which the criteria
in paragraph 2 above have been met, together with a
recommendation and two copies of Form ITA-9048 signed by the
applicant requesting priority rating authority.
(2) Upon receipt of approval from the Director of Procurement and
Assistance Management, Heads of Field Elements assign to the
applicant the right to apply priority rating DO-E3 on related
purchase orders.
(3) Heads of Field Elements must advise approved applicants that
they must obtain controlled materials and other products and
materials under the provisions of the defense priorities and
allocations system.
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