Preliminary notice of violation.

(a) Based on a determination by the Enforcement Director that there is a reasonable basis to believe a contractor has violated or is continuing to violate a requirement of this part, the Enforcement Director may issue a preliminary notice of violation (PNOV) to the contractor. (b) A PNOV must indicate: (1) The date, facts, and nature of each act or omission upon which each alleged violation is based; (2) The particular requirement involved in each alleged violation; (3) The proposed remedy for each alleged violation, including the amount of any civil penalty; and (4) The obligation of the contractor to submit a written reply to the Enforcement Director within 30 calendar days of receipt of the PNOV. (c) A reply to a PNOV must contain a statement of all relevant facts pertaining to an alleged violation. (1) The reply must: (i) State any facts, explanations and arguments that support a denial of the alleged violation; (ii) Demonstrate any extenuating circumstances or other reason why a proposed remedy should not be imposed or should be mitigated; (iii) Discuss the relevant authorities that support the position asserted, including rulings, regulations, interpretations, and previous decisions issued by DOE; and (iv) Furnish full and complete answers to any questions set forth in the preliminary notice. (2) Copies of all relevant documents must be submitted with the reply. (d) If a contractor fails to submit a written reply within 30 calendar days of receipt of a PNOV: (1) The contractor relinquishes any right to appeal any matter in the preliminary notice; and (2) The preliminary notice, including any proposed remedies therein, constitutes a final order. (e) 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. [71 FR 6931, Feb. 9, 2006, as amended at 88 FR 41294, June 26, 2023]