BOP 541.1 Admin Chg 1, Contracting Authorties (Redline)

BOP -541.103.02 Admin Chg 1 1 10-22-13 ADMINISTRATIVE CHANGE TO BOP -541.103.02, Contracting Authorities Locations of Changes: Page Paragraph Changed To Cover NNSA POLICY LETTER BUSINESS OPERATING PROCEDURE Cover BOP-003.0303A BOP -541.103.02 Update numbering to new numbering system Cover Office of Acquisition & Supply Management Office of Acquisition and Project Management Cover Footer Office of Acquisition & Supply Management Office of Acquisition Management 1 1 Policy Letter Business Operating Procedure 1, 2, 3, 4, 5, 6 Various locations Site Office Field Office 1, 2, 3, 4, 6 Various locations removed Service Center 1, 2, 3, 4, 5 Various location the Administration NNSA 1 3 Added 3.a. NNSA Applicability 1 3 Added 3.b. Equivalency.; updated NA-30, Office of Naval Reactors statement 1 4 Office of Acquisition & Supply Management (NA-63)(OASM) Office of Acquisition Management (NA-APM-10) (OAM) 1 4 The Deputy Director, OASM has been designated as the HCA for actions exceeding $25M. The Deputy Director, OAM has been designated as the Senior HCA with an Unlimited Warrant. 1 4 The Service Center, Director of the Office of Business Services is the HCA for actions $25M or less. The Contracts and Procurement Division (CPD) is the HCA with an Unlimited Warrant, with the exception of Naval Reactors Program actions. 3 6.a. Senior Procurement Executive (NA-63) Senior Procurement Executive (NA- APM-10) 4 6.a.11). nonbeverage non-beverage 6 7 Office of Acquisition &Supply Management Office of Acquisition Management (NA-APM-10) (202) 586-7439 6 Signature BY ORDER OF THE SENIOR PROCUREMENT EXECUTIVE BY ORDER OF THE ADMINISTRATOR 2 BOP -541.103.02 Admin Chg 1 10-22-13 Page Paragraph Changed To 6 Signature David Boyd Senior Procurement Executive Barbara Stearrett Acting Senior Procurement Executive 6 Attach Added: Attachment: NNSA Flow of Contracting Authority Attach 1 Added: NNSA Flow of Contracting Authority BUSINESS OPERATING PROCEDURE Approved: 02-05-09 Admin Change 1: 10-22-13 CONTRACTING AUTHORITIES NATIONAL NUCLEAR SECURITY ADMINISTRATION Office of Acquisition and Project Management AVAILABLE ONLINE AT: INITIATED BY: http://hq.na.gov Office of Acquisition Management BOP -541.103.02 http://hq.na.gov/ THIS PAGE INTENTIONALLY LEFT BLANK BOP -541.103.02 1 02-05-09 CONTRACTING AUTHORITIES 1. PURPOSE. The objective of this Business Operating Procedure is to define the Federal authorities, roles, and responsibilities for contracts, financial assistance instruments, personal property, and sales activities so that Headquarters and Field Offices can successfully accomplish the NNSA mission and programs. 2. CANCELLATION. BOP-003.0303A, Contracting Authority, dated 2-5-09. 3. APPLICABILITY. a. NNSA Applicability. All NNSA Federal elements. b. Equivalency. In accordance with the responsibilities and authorities assigned by Executive Order 12344, codified at 50 USC sections 2406 and 2511 and to ensure consistency through the joint Navy/DOE Naval Nuclear Propulsion Program, the Deputy Administrator for Naval Reactors (Director) will implement and oversee requirements and practices pertaining to this Directive for activities under the Director’s cognizance, as deemed appropriate. 4. BACKGROUND. Authority and responsibility to contract for authorized supplies and services are vested in the agency head; in NNSA’s case, the Administrator. Also, 50

U.S.C. 2402 designates the Administrator as the NNSA Senior Procurement Executive for purposes of section 16(3) of the Office of Federal Procurement Policy (OFPP) Act (41 U.S.C. 414(3)). The Administrator has delegated Senior Procurement Executive authority to the Director, Office of Acquisition Management (NA-APM-10) (OAM). In this capacity, the Senior Procurement Executive has the authority to designate any Head of the Contracting Authority (HCA) within the NNSA. The Deputy Director, OAM has been designated as the Senior HCA with an Unlimited Warrant. The Contracts and Procurement Division (CPD) is the HCA with an Unlimited Warrant, with the exception of Naval Reactors Program actions. The Manager, Naval Reactors Laboratory Field Office is the HCA for Naval Reactors Program actions of $25M or less. Each HCA has the authority to issue and revoke Contracting Officer warrants. Below the level of the HCA only warranted Contracting Officers may obligate NNSA by entering into contracts and financial assistance instruments. 5. REQUIREMENTS. Authority to direct a NNSA contractor is based on formal appointments and delegations. Staff and oversight components of NNSA are prohibited from tasking contractors to perform any work or activity unless they have been specifically provided with this authority. Only a warranted NNSA Contracting Officer or a formally appointed Contracting Officer’s Representative (COR), with requisite appointment authority, may task a contractor to perform work. The NNSA Administrator’s procurement authorities and responsibilities flow through the Senior Procurement Executive to the HCA who, by 2 BOP -541.103.02 02-05-09 issuing a warrant, grants procurement authority and responsibility to a Contracting Officer. NNSA Contracting Officers for Headquarters and the Field Offices are appointed by the appropriate HCA. The NNSA Field Office Manager, for the laboratory, test site, or production facility may be appointed as a Contracting Officer, consistent with the requirements of DOE O 541.1B, Appointment of Contracting Officers and Contracting Officer Representatives, and subject to the limitations established in their appointment. Organizationally, the NNSA HCAs combined have overall responsibility for managing the contracting activity and are Contracting Officers based on delegation letters issued by the NNSA Senior Procurement Executive (SPE). Each NNSA HCA appoints Contracting Officers consistent with the OFPP standards applicable to all executive agencies. Contracting Officers are issued a “Certificate of Appointment” that specifies their authorized functional areas, limits of authority, and other restrictions. The following positions are fundamental to implementation of NNSA’s contracting authorities: a. Contracting Officer - A Contracting Officer is a qualified person appointed by the HCA with the authority to award, administer, and terminate contracts, financial assistance instruments or sales instruments; make related determinations and findings; develop and negotiate fees; change contract terms and conditions; determine the allowability of costs; and, negotiate aggressive subcontracting plan goals to ensure that small business have the maximum practicable opportunity to participate in NNSA’s procurements. b. Field Office Manager - A Field Office Manager is responsible for effective contract administration at the site to ensure the successful implementation of

NNSA programs. The Field Office Manager may be a Contracting Officer with authority to administer contracts based upon the attainment of all required certifications. Contract administration duties typically include: • Authorizing and directing contractor work, • Validating detailed plans generated by contractors against mission requirements, • Developing detailed plans and obtaining Headquarters approval, • Ensuring that small businesses have the maximum practicable opportunity to participate in NNSA procurements, • Performing oversight and review of contractor self-assessments, and • Evaluating contractor performance. BOP - 541.103.02 3 02-05-09 c. Contracting Officer’s Representative (COR) - A COR is an NNSA employee appointed by the Contracting Officer, with specific responsibilities to provide an on-site, day-to-day presence at Laboratories, Production Facilities, Test Site, or Headquarters. The COR’s authority to direct the contractor is limited by the terms of their written appointment, which specifically outlines appropriate duties and limits of authority. d. Headquarters Programmatic Contracting Officer’s Representative - This COR is an NNSA employee appointed by the Contracting Officer, or SPE, to perform specific functions including federal oversight of contractor execution of detailed planning, integrations, and execution of the nuclear weapons program and nonproliferation programs. NOTE: There is only one type of Contracting Officer’s Representative. The modifiers “Field Office” and “Headquarters Programmatic” are used only to identify where certain responsibilities are accomplished and the different nature of the responsibilities. 6. RESPONSIBILITIES. NNSA contracting authorities are carried out at two organizational levels: Headquarters and Field Offices. a. Senior Procurement Executive (NA-APM-10): 1) Provides overall management direction of NNSA’s acquisition and financial assistance, and Field Offices. 2) Oversees the development of acquisition and financial assistance policy, goals, guidelines, and innovations, 3) Measures and evaluates Field Office performance against acquisition and assistance goals, 4) Ensures career development of the acquisition workforce, 5) Approves justifications for other than full and open competition if the amount exceeds $50,000,000, 6) Participates with the Office of Small and Disadvantaged Utilization and other elements in NNSA to establish small business goals. 7) Designates: • The Head of the Contracting Activity • A Senior Competition Advocate to perform the duties required by the Competition in Contracting Act of 1984, Public Law 98-369 • A task and delivery order ombudsman to perform the duties required by the Federal Acquisition Streamlining Act of 1994 4 BOP - 541.103.02 02-05-09 • A program manager to implement an electronic commerce capability for NNSA who reports directly to the Senior Procurement Executive. 8) Assigns contracting functions and responsibilities to another agency, and creates joint or combined offices with another agency to exercise acquisition functions. 9) Enters into, approves, administers, modifies, closes-out, terminates, and takes such other actions as may be necessary and appropriate with respect to any procurement or financial assistance transaction binding NNSA to the obligation and expenditure of public funds. 10) Approves extraordinary contractual actions to facilitate the national

defense that do not to exceed $50,000. 11) Signs applications for permits to acquire tax-free spirits from a distilled spirits plant for non-beverage purposes. 12) Determines whether to use the authority in the Defense Production Act of 1950, for priority contracting authority to expedite procurement actions to promote National Defense. This determination is made after consultation with the NNSA General Counsel and the DOE Assistant Secretary for Policy and International Affairs. 13) Acquires, manages, and disposes of personal property held by NNSA for official use by its employees or contractors. b. The Head of the Contracting Activity (HCA): 1) Enters into, approves, and takes other actions with respect to any contract arrangement, financial assistance agreement, sales contract, or similar transaction, whether or not binding NNSA to the obligation and expenditure of public funds, pursuant to applicable laws, policies, regulations, and procedures. Such actions include rendering approvals, determinations, and decisions, as specifically authorized in the Federal Acquisition Regulations and the Procurement and Financial Assistance regulations that govern NNSA’s actions in these areas. 2) Appoints Contracting Officers. 3) Designates Headquarters or Field Office Competition Advocate, as needed, to perform the duties required by the Competition in Contracting Act of 1984. 4) Makes the determinations required by the Federal Acquisition Regulations in the case of mistakes in bids alleged after opening of bids and before BOP -541.103.02 5 02-05-09 award, and makes all administrative determinations regarding withdrawal of bids. 5) Acquires, manages, and disposes of personal property held by NNSA for official use by its employees or contractors. 6) Develops and maintains organizational continuity of services and contract support needed for NNSA mission accomplishment. 7) The following NNSA organizations are designated Contracting Offices and operate within the guidelines and authority provided by the appropriate HCA: NNSA Headquarters Kansas City Field Office Livermore Field Office Los Alamos Field Office Nevada Field Office NNSA Production Office Sandia Field Office Savannah River Field Office Naval Reactors Laboratory Field Office c. The Field Office Manager: 1) Has primary responsibility for day-to-day oversight and evaluation of program management and contract administration activities at the site. These duties include establishing the overall safety and security parameters within which the contractor is authorized to operate and ensuring that the contractor is making a good faith effort to meet small business subcontracting plan goals. 2) Integrates activities at the site with customers from other elements of the Department of Energy, other Federal agencies, and the private sector. d. The Contracting Officer: 1) Ensures that the requirements of FAR 1.602-1 (b) have been met, and that sufficient funds are certified available for obligation. BOP -541.103.02 02-05-09 6 2) Ensures that contractors receive impartial, fair, and equitable treatment. 3) Exercises independent business judgment. 4) Elevates unresolved issues that create tension between program and business objectives through the Field Office Manager to the HCA for resolution. 5) Appoints qualified Contracting Officer's Representatives to assure mission fulfillment and effective contract administration and management.

At Field Offices, COR appointments will have the Field Office Manager concurrence.cmTence. e. Contracting Officer's Representative : 1) Monitors contractor performance and reports status to the Field Office Manager/Contracting Officer. 2) Recommends necessary contractual changes to the Field Office Manager/Contracting Officer. 3) Inspects and accepts deliverables. 4) Provides technical/performance direction to the contractor subject to the terms of their appointment. 5) Performs responsibilities and provides reports and information for the Contracting Officer in accordance with the appointment delegation letter. f. The Headquarters Programmatic Contracting Officer's Representatives, subject to the terms of their appointment, provide programmatic guidance, direction and eval uation. 7. CONTACT. Deputy Director, Office of Acquisition Management (NA-APM-10), (202) 586-7439. BY ORDER OF THE ADMINISTRATOR: Acting Senior Procurement Executive Attachment: NNSA Flow of Contracting Authority BOP -541.103.02 02-05-09 Attachment 1 AT1-1 Attachment 1: NNSA Flow of Contracting Authority 5 NNSA Flow of Contracting Authority