of Federal Procurement Policy, and with the need of DOE for prompt, fair, and inexpensive resolution of contract disputes as part of an effective agency-contractor relationship.

(d) Consistent with this policy, the Uniform Rules of Practice of Boards of Contract Appeals, as proposed by the National Conference of Boards of Contract Appeals Members, have been adopted herein in major part. However, some provisions differ from the uniform rules, particularly in those areas in which earlier Agency practice had proven successful in expediting the appeal process. For example, the new rules call for the filing of a notice of appeal directly with the contracting officer, and that officer is then required to ascertain identification shown by experience to be effective in expediting the appeal process. Another rule with a similar purpose permits direct appeal by a subcontractor in disputes arising under a subcontract entered into by a cost-type prime contractor in which a dispute provision has been included. The earlier practice of providing for direct service of pleadings and papers between parties, simultaneously with their filing before the Board, similarly expedites the appeal and is adopted.

(e) The new rules also require that items in the appeal file be offered into evidence rather than the entire appeal file automatically becoming part of the evidence, subject to objection, at the time the appeal file is transmitted. This practice encourages the submission of relevant documentation only. The provisions in the uniform rules relating to depositions and discovery are consolidated and amended to clarify the use of depositions as one form of discovery, and to provide for apportionment of expenses within the discretion of the Board in cases of hardship associated with discovery.

(f) The use of the optional accelerated procedure is expanded beyond that contemplated in the uniform rules to recognize equitable considerations as well as a monetary ceiling for purposes of greater flexibility as reflected in earlier Agency practice. Thus, accelerated procedure is made available, in the sound discretion of the Board, in certain cases additional

to those meeting a monetary limitation. The provision for final decision to be rendered by the entire Board in every case, including those processed under accelerated procedure, comple ments this practice.

(g) Some provisions have no corresponding basis in the uniform rules. For example, the revised rules include provisions for the use of subpoenas, and for security requirements, as provided by the enabling authorization; the Board is authorized to decide ap plications for extraordinary relief involving contractual fairness sitting as the Contract Adjustment Board. However, as to the later provisions, it should be noted that each case brought before the Contract Adjustment Board is judged solely on its merits under the criteria of Pub. L. 85804 and Executive Order 10789, as amended, and decisions made pursuant thereto may not be cited as prece dent in other matters brought before the Board.

(h) Throughout the revised rules emphasis is placed on flexibility and the exercise of broad discretion as primary means of effecting the resolution of appeals in an orderly, impartial and expeditious manner. Emphasis is likewise placed upon the sourd administration of these rules in as informal a manner as possible, consistent with the need to provide due process and to develop an adequate record for Board action and judicial review.

PREFACE TO THE RULES

§ 703.11 Jurisdiction for considering appeals.

The Department of Energy Board of Contract Appeals (Board) is the authorized representative of the Administrator to consider and determine appeals from decisions of contracting of ficers arising under contracts which contain provisions for resolving such disputes. The Board is also designated and authorized to function as the Contract Adjustment Board in applica tions for extraordinary relief pursuant to Pub. L. 85-804.

§ 703.1

SANCTIONS

703.133 Sanctions.

SECURITY

703.134 Security requirements.

Subpart B-Rules of the Contract Adjustment Board [Reserved]

APPENDIX A-ORGANIZATION AND FUNCTIONS, DOE MANUAL, CHAPTER 0114, OFFICE OF THE BOARD OF CONTRACT APPEALS

AUTHORITY: Sec. 105, Pub. L. 93-438, 88 Stat. 1238, 42 U.S.C. 5815; sec. 161, Pub. L. 83-703, 68 Stat. 948, 42 U.S.C. 2201; sec. 3, Pub. L. 85-804, 72 Stat. 972, 50 U.S.C. 1433. SOURCE: 41 FR 12215, Mar. 24, 1976, unless otherwise noted.

Subpart A-Rules of the Board of
Contract Appeals

§ 703.1 Scope and purpose.

(a) The establishment of the Department of Energy (DOE) and the transfer to it of functions previously assigned to other agencies, including those discharged by the Board of Contract Appeals of the Atomic Energy Commission, led to a newly reorganized Board of Contract Appeals in DOE. All decisions rendered by this Board become the final decisions of the Agency.

(b) The reorganization of the Board, its scope of functions and authorities, including the authority to establish and issue rules of procedure not inconsistent with its charter and the change in organization from one composed of two full-time, permanent members augmented by a panel of part-time "consultant" members, to its present composition of three full-time, permanent, lawyer members, is more fully set forth in DOE Manual Chapter 0114; published for convenience as Appendix A to this part.

(c) Several factors were taken into consideration in reorganizing the Board, primary of which was the desire to establish an organization more like that of other agency boards, and to establish procedures that would conform to a more common practice before boards of contract appeals. This was in keeping with the recommendation of the Commission on Government Procurement and the Office

of Federal Procurement Policy, and with the need of DOE for prompt, fair, and inexpensive resolution of contract disputes as part of an effective agency-contractor relationship.

(d) Consistent with this policy, the Uniform Rules of Practice of Boards of Contract Appeals, as proposed by the National Conference of Boards of Contract Appeals Members, have been adopted herein in major part. However, some provisions differ from the uniform rules, particularly in those areas in which earlier Agency practice had proven successful in expediting the appeal process. For example, the new rules call for the filing of a notice of appeal directly with the contracting officer, and that officer is then required to ascertain identification shown by experience to be effective in expediting the appeal process. Another rule with a similar purpose permits direct appeal by a subcontractor in disputes arising under a subcontract entered into by a cost-type prime contractor in which a dispute provision has been included. The earlier practice of providing for direct service of pleadings and papers between parties, simultaneously with their filing before the Board, similarly expedites the appeal and is adopted.

(e) The new rules also require that items in the appeal file be offered into evidence rather than the entire appeal file automatically becoming part of the evidence, subject to objection, at the time the appeal file is transmitted. This practice encourages the submission of relevant documentation only. The provisions in the uniform rules relating to depositions and discovery are consolidated and amended to clarify the use of depositions as one form of discovery, and to provide for apportionment of expenses within the discretion of the Board in cases of hardship associated with discovery.

(f) The use of the optional accelerated procedure is expanded beyond that contemplated in the uniform rules to recognize equitable considerations as well as a monetary ceiling for purposes of greater flexibility as reflected in earlier Agency practice. Thus, accelerated procedure is made available, in the sound discretion of the Board, in certain cases additional

to those meeting a monetary limitation. The provision for final decision to be rendered by the entire Board in every case, including those processed under accelerated procedure, complements this practice.

(g) Some provisions have no corresponding basis in the uniform rules. For example, the revised rules include provisions for the use of subpoenas, and for security requirements, as provided by the enabling authorization; the Board is authorized to decide applications for extraordinary relief involving contractual fairness sitting as the Contract Adjustment Board. However, as to the later provisions, it should be noted that each case brought before the Contract Adjustment Board is judged solely on its merits under the criteria of Pub. L. 85804 and Executive Order 10789, as amended, and decisions made pursuant thereto may not be cited as precedent in other matters brought before the Board.

(h) Throughout the revised rules emphasis is placed on flexibility and the exercise of broad discretion as primary means of effecting the resolution of appeals in an orderly, impartial ard expeditious manner. Emphasis is likewise placed upon the sound administration of these rules in as informal a manner as possible, consistent with the need to provide due process and to develop an adequate record for Board action and judicial review.

PREFACE TO THE RULES

§ 703.11 Jurisdiction for considering appeals.

The Department of Energy Board of Contract Appeals (Board) is the authorized representative of the Administrator to consider and determine appeals from decisions of contracting officers arising under contracts which contain provisions for resolving such disputes. The Board is also designated and authorized to function as the Contract Adjustment Board in applications for extraordinary relief pursuant to Pub. L. 85-804.

§ 703.12 Organization and location of Board.

(a) The Board is located in Washington, D.C. and its mailing address is:

The Board of Contract Appeals, U.S. Department of Energy, Washington, D.C. 20545.

(b) The Board consists of a chairman and two other members all of whom shall be attorneys at law duly licensed by any State or the District of Columbia. The decision of a majority of the Board constitutes the decision of the Board. Board members are designated as Administrative Judges and the chairman is designated as Chief Administrative Judge.

8703.13 Decisions on questions of law.

When an appeal is taken pursuant to a disputes clause in a contract which limits appeals to disputes concerning questions of fact, the Board, may, in its discretion, hear, consider, and decide all questions of law necessary for the complete adjudication of the issue. In the consideration of an appeal, should it appear that a claim is involved which is not cognizable under the terms of the contract, the Board may make findings of fact with respect to such a claim without expressing an opinion on the question of liability.

8703.14 Contract appeals procedure.

(a) Rules. Appeals referred to the Board are handled in accordance with the rules of the Board.

(b) Administration and interpretation of rules. Emphasis is placed upon the sound administration of these rules in specific cases, because it is impracticable to articulate a rule to fit every possible circumstance which may be encountered. These rules will be interpreted so as to secure a just and inexpensive determination of appeals without unnecessary delay.

(c) Preliminary procedures. Preliminary procedures are available to encourage full disclosure of relevant and material facts, and to discourage unwarranted surprise.

PRELIMINARY PROCEDURES

8703.101 Appeals, how taken.

An appeal from a decision of a contracting officer shall be taken by notice of appeal, in writing, addressed to the Board, and shall be mailed to, or filed with, the contracting officer, within the time allowed by the contract or applicable provision of directive or law.

§ 703.102 Notice of appeal, contents of.

(a) The notice of appeal shall identify the contract by number, and shall specify the portion of the decision from which the appeal is taken, and the reasons why the decision of the contracting officer is deemed erroneous. It shall include a request for application of the accelerated procedure, if such is desired under § 703.112. All papers filed after the notice of appeal should be sent directly to the Board, with concurrent service upon the other party or parties.

(b) The notice of appeal should be signed personally by the appellant (the contractor taking the appeal, or a subcontractor under a cost-type prime contract which contains a dispute provision), or by an officer of the appellant corporation or member of the appellant firm, or by the contractor's duly authorized representative or attorney. The complaint referred to in § 703.106 may be filed with the notice of appeal, or the appellant may designate the notice of appeal as a complaint, if it otherwise fulfills the requirements of 703.106 for a complaint.

§ 703.103 Forwarding of appeals.

When a notice of appeal has been received by the contracting officer, he shall, within 10 days, endorse thereon the date of mailing (or date of receipt, if otherwise conveyed) and shall forward said notice of appeal to the Board. In so notifying the Board, the contracting officer shall include the following information: date of receipt by the appellant of the contracting officer's decision; date of receipt by the contracting officer of the appellant's notice of appeal; amount of the claim; whether appellant is a small business;