Based on a determination by the Director that there is a reasonable basis to believe a contractor has violated or is continuing to violate a requirement of this part, the Director may issue a preliminary notice of violation (PNOV) to the contractor.

A PNOV must indicate:

The date, facts, and nature of each act or omission upon which each alleged violation is based;

The particular requirement involved in each alleged violation;

The proposed remedy for each alleged violation, including the amount of any civil penalty; and

The obligation of the contractor to submit a written reply to the Director within 30 calendar days of receipt of the PNOV.

A reply to a PNOV must contain a statement of all relevant facts pertaining to an alleged violation.

The reply must:

State any facts, explanations and arguments that support a denial of the alleged violation;

Demonstrate any extenuating circumstances or other reason why a proposed remedy should not be imposed or should be mitigated;

Discuss the relevant authorities that support the position asserted, including rulings, regulations, interpretations, and previous decisions issued by DOE; and

Furnish full and complete answers to any questions set forth in the preliminary notice.

Copies of all relevant documents must be submitted with the reply.

If a contractor fails to submit a written reply within 30 calendar days of receipt of a PNOV:

The contractor relinquishes any right to appeal any matter in the preliminary notice; and

The preliminary notice, including any proposed remedies therein, constitutes a final order.

A copy of the PNOV must be prominently posted, once final, at or near the location where the violation occurred until the violation is corrected.