[Code of Federal Regulations]
[Title 48, Volume 5]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR970.0370-1]

[Page 424-425]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                     CHAPTER 9--DEPARTMENT OF ENERGY
 
Sec. 970.0370-1  Policy.

    (a) Management and operating contractors shall develop and maintain 
systems of management and quality control to discourage waste, fraud and 
abuse; and to ensure that components, products, and services that are 
provided to DOE satisfy the contractor's obligations under the contract.
    (b) As a part of the required overall management structure, the 
contractor must maintain management control systems which, in compliance 
with the requirements of the clause at 48 CFR 970.5203-1:
    (1) Are documented and satisfactory to DOE;
    (2) Ensure that all levels of management are accountable for 
effective management systems and internal controls within their areas of 
assigned responsibility;
    (3) Cover both programmatic and administrative functions;
    (4) Provide reasonable assurance that Government resources are 
safeguarded against theft, fraud, waste, and unauthorized use;
    (5) Promote efficient and effective operations;
    (6) Ensure that all obligations and costs incurred are in compliance 
with the intended purposes and the terms and conditions of the contract;
    (7) Properly record, manage, and report all revenues, expenditures, 
transactions and assets;
    (8) Maintain financial, statistical and other reports necessary to 
maintain accurate, reliable, and timely accountability and management 
controls;
    (9) Are periodically reviewed to ensure that the systems provide 
reasonable assurance that the objectives of the system are being 
accomplished and that these controls are working effectively;
    (10) Are in accordance with the Comptroller General's standards for 
internal controls, as set forth in the General Accounting Office Policy 
and Procedures Manual For Guidance to Federal Agencies, (Oct 1984), as 
amended.

[[Page 425]]

    (c) Management and operating contractors shall also develop and 
maintain a baseline program of quality assurance that will implement 
documented performance and quality standards, and management controls 
and assessment techniques to ensure components, services, and products 
meet DOE's, design criteria and other governing and applicable 
specifications.
    (d) DOE expects all its contractors to seek to identify improvements 
in any aspect of performance. Management and operating contracts are 
very large and complex; therefore, the opportunities to identify changes 
in performance that will increase the effectiveness or efficiency of 
contract performance are more prevalent than under other contracts. The 
clause at 48 CFR 970.5203-2 requires DOE management and operating 
contractors to affirmatively seek to identify, evaluate, and institute, 
where appropriate, processes that will improve the effectiveness or 
efficiency of any aspect of contract performance. It further requires 
the contractor to communicate any such improvements to DOE, other 
management and operating contractors, and DOE major facilities 
contractors. The contractor is required to participate in efforts by 
those contractors to address common problems or the institution of 
improvements. It allows the contractor to enlist the aid of the DOE 
contracting officer where necessary to institute or communicate the 
improvements. The obligations under the clause in no way affect the 
contractor's obligations under other provisions of the contract to 
notify or acquire the approval of the contracting officer.