Legal Management Plan, Staffing and Resource Plan and Annual Legal Budget

10 C.F.R. Part ..., Subpart B
in effectEffective: 2024-07-01

10 C.F.R. § 719.10 Who must submit a Legal Management Plan?

Contractors who are parties to contracts identified under § 719.3(a) and (b) must submit a Legal Management Plan.

10 C.F.R. § 719.11 When must a Legal Management Plan be submitted or revised?

(a) Contractors must submit a Legal Management Plan to Department Counsel within 60 days following award of the contract. The deadline for submitting the Legal Management Plan may be extended by Department Counsel. (b) Contractors must submit a revised Legal Management Plan upon request of Department Counsel within 60 days of receipt of the Department Counsel's request. The request for a revised Legal Management Plan shall include an explanation of the request. The deadline for submitting the Legal Management Plan may be extended by the Department Counsel.

10 C.F.R. § 719.12 What information must be included in the Legal Management Plan?

The Legal Management Plan must include the following items: (a) A description of the contractor's in-house counsel resources at the time the Legal Management Plan is submitted, including areas of expertise and an explanation of the types of matters expected to be handled in-house. (b) A description of the legal matters that may necessitate engagement of retained legal counsel. (c) A description of the factors the contractor will consider in determining whether to handle a particular matter utilizing retained legal counsel. (d) An outline of the factors the contractor must consider in selecting retained legal counsel, including: (1) Cost; (2) Past performance of previously retained counsel; (3) Particular expertise in a specific area of the law; (4) Familiarity with the Department's activity at the particular site and the prevalent issues associated with facility history and current operations; (5) Location of retained legal counsel relative to: (i) The site involved in the matter, (ii) Any forum in which the matter will be processed, and (iii) The location where a significant portion of the work will be performed; (6) Experience as an advocate in alternative dispute resolution procedures such as mediation; (7) Actual or potential conflicts of interest; and (8) The means and rate of compensation (e.g., hourly billing, fixed fee, blended fees). (e) A description of the system that the contractor will use to review each matter in litigation to determine whether and when alternative dispute resolution is appropriate. (f) A description of the role of in-house counsel in cost management. (g) A description of the contractor's process for review and approval of invoices for legal costs. (h) A description of the contractor's strategy for interaction with, and supervision of, retained legal counsel. (i) A description of the procedures the contractor will employ in order to seek timely approval from Department Counsel to settle any legal matters as required by § 719.34 of this part; (j) A description of the contractor's strategy for keeping Department Counsel apprised of all legal matters covered by this part (e.g., regularly scheduled meetings and written communications).

10 C.F.R. § 719.13 Who at the Department receives and reviews the Legal Management Plan?

Contractors must submit a Legal Management Plan to Department Counsel. If the contractor has not been notified of the assignment of Department Counsel, the contractor must submit the Legal Management Plan to the contracting officer and the DOE Deputy General Counsel for Litigation and Enforcement or the NNSA Deputy General Counsel as appropriate.

10 C.F.R. § 719.14 Will the Department notify the contractor concerning the adequacy or inadequacy of the submitted Legal Management Plan?

The Contracting Officer or Department Counsel will notify the contractor of any non-compliance or inadequate information relating to requirements in § 719.12 within 30 days of the contractor's submission of the plan. The contractor must either correct matters identified within 30 days of notification or file a letter with the General Counsel disputing the determination of a deficiency.

10 C.F.R. § 719.15 What are the requirements for a Staffing and Resource Plan?

(a) For significant matters in litigation, the contractor must require retained legal counsel to prepare a Staffing and Resource Plan. The contractor must then forward the Staffing and Resource Plan to Department Counsel. (b) Retained legal counsel retained directly by the Department subject to this part must prepare a Staffing and Resource Plan and forward it to Department Counsel. (c) A Staffing and Resource Plan must describe the following: (1) Major phases likely to be involved in the handling of the matter; (2) Timing and sequence of such phases; (3) Projected cost for each phase of the representation; and (4) Detailed description of resources that the retained legal counsel intends to devote to the representation. (d) A Staffing and Resource Plan must include a budget, broken down by phases, including at a minimum the following phases: (1) Matter assessment, development and administration; (2) Pretrial pleadings and motions; (3) Discovery; (4) Trial preparation and trial; and (5) Appeal. (e) The contractor must notify Department Counsel before incurring retained legal counsel costs in excess of costs listed in the budget developed pursuant to paragraph (d) of this section.

10 C.F.R. § 719.16 When must the Staffing and Resource Plan be submitted?

(a) The contractor or retained legal counsel must submit the Staffing and Resource Plan to Department Counsel within 30 days after the filing of an answer or a dispositive motion in lieu of an answer, 30 days after a determination that the cost is expected to exceed $100,000, or 30 days after notification from Department Counsel that a matter is considered significant, whichever is sooner. The deadline for submitting the Staffing and Resource Plan may be extended by Department Counsel. (b) Department Counsel may state objections to the Staffing and Resource Plan within 30 days of receipt of a Staffing and Resource Plan. When an objection is stated, the contractor or retained legal counsel must either revise the Staffing and Resource Plan to satisfy the objection within 30 days or file a letter with the General Counsel disputing the objection. (c) Contractors must require retained legal counsel to update Staffing and Resource Plans annually or more frequently if there are significant changes in the matter. The contractor must submit the Staffing and Resource Plan updates to Department Counsel. Similarly, Department retained legal counsel must submit to Department Counsel annual Staffing and Resource Plan updates or more frequent updates if there are significant changes in the matter.

10 C.F.R. § 719.17 Are there any budgetary requirements?

(a) Contractors required to submit a Legal Management Plan must also submit an annual legal budget to Department Counsel. (b) The annual legal budget must include cost projections for significant matters at a level of detail reflective of the types of billable activities and the stage of each such matter. (c) For informational purposes for both the contractor and Department Counsel, the contractor must submit a report to Department Counsel comparing its budgeted and actual legal costs within 30 days of the conclusion of the period covered by each annual legal budget. The Department recognizes, however, that there may be departures from the annual budget beyond the control of the contractor.

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