10 C.F.R. Subpart A—General Provisions
Title 10 - Energy
This part is intended to facilitate control of Department and contractor legal costs, including litigation costs. The contractor is required to develop a procedure for retaining legal counsel, and to document the analysis used to decide when, where and who will be engaged as outside counsel and the terms of the engagement. Payment of law firm invoices and reimbursement of contractor legal costs under covered contracts is subject to compliance with this part. For purposes of this part: Alternative dispute resolution includes processes such as mediation, neutral evaluation, mini-trials and arbitration. Contractor means any person or entity with whom the Department contracts for the acquisition of goods or services. Covered contracts means those contracts described in §719.3. Department means the Department of Energy, including the National Nuclear Security Administration. Department counsel means the individual in the field office, or Headquarter's office, designated as the contracting officer's representative and point of contact for a contractor or Department retained legal counsel, for purposes of this part only, for submission and approval of the legal management plan, advance approval of certain costs, and submission of a staffing and resource plan, as addressed in this part. Legal costs include, but are not limited to, administrative expenses associated with the provision of legal services by retained legal counsel; the costs of legal services provided by retained legal counsel; the costs of the services of accountants, consultants, or others retained by the contractor or by retained legal counsel to assist retained legal counsel; and any similar costs incurred by or in connection with the services of retained legal counsel. Legal management plan means a statement describing the contractor's practices for managing legal costs and matters for which it procures the services of retained legal counsel. Retained legal counsel means members of the bar working in the private sector, either individually or in law firms, who are retained by a contractor or the Department to provide legal services. Significant matters means legal matters, including litigation, involving significant issues as determined by Department counsel, and any legal matter where the amount of any legal costs, over the life of the matter, is expected to exceed $100,000. Staffing and resource plan means a statement prepared by retained legal counsel describing plans for managing a significant matter. (a) This part covers cost reimbursement contracts: (1) For an amount exceeding $100,000,000, and (2) Involving work performed at the facilities owned or leased by the Department. (b) This part covers contracts otherwise not covered by paragraph 3(a) of this section containing a specialized clause requiring compliance with this part. (c) This part also covers Department contracts with retained legal counsel where the legal costs are expected to exceed $100,000. Retained legal counsel under fixed rate or other type of contract with the Department itself to provide legal services must comply with the following where the legal costs over the life of the matter for which counsel has been retained are expected to exceed $100,000: (a) Requirements related to staffing and resource plans in subpart B of this part, (b) Engagement letter requirements if legal work is contracted out, and (c) Cost guidelines in subpart D of this part. This part does not cover: (a) Fixed price contracts; (b) Cost reimbursement contracts for an amount less than $100,000,000; or (c) Contracts for an amount exceeding $100,000,000 involving work not performed at a government owned or leased site. Matters not covered by this part include: (a) Matters handled by counsel retained by an insurance carrier; (b) Routine intellectual property law support services; (c) Routine workers and unemployment compensation matters and labor arbitrations; and (d) Routine matters handled by counsel retained through a GSA supply schedule. (a) Requests for exceptions or deviations from this part by contractors must be made in writing to Department counsel and approved by the General Counsel. If an alternate procedure is proposed for compliance with an individual requirement in this part, that procedure must be included in the written request by the contractor. (b) The General Counsel may authorize exceptions based on a recommendation of Department counsel. The General Counsel may also establish exceptions to this part based on current field office and contractor practices which satisfy the purpose of these requirements. (c) Exceptions to this part which are also a deviation from the cost principles (see subpart D of this part) must be approved by the Procurement Executive. See 48 CFR (FAR) 31.101. Written requests from contractors for a deviation to a cost principle must be submitted to the contracting officer, with a copy provided to Department counsel.
Title 10: Energy
PART 719—CONTRACTOR LEGAL MANAGEMENT REQUIREMENTS
Subpart A—General Provisions
§ 719.1 What is the purpose of this part?
§ 719.2 What are the definitions of terms used in this part?
§ 719.3 What contracts are covered by this part?
§ 719.4 Are law firms that are retained by the Department covered by this part?
§ 719.5 What contracts are not covered by this part?
§ 719.6 Are there any types of legal matters not included in the coverage of this part?
§ 719.7 Is there a procedure for exceptions or deviations from this part?
