INDEX


                                  CHAPTER VIII

                            CLASSIFICATION APPRAISALS

1.  POLICY.  The classification practices, procedures, and performance of
    DOE and DOE contractor organizations shall be appraised to ascertain
    their adequacy and effectiveness.

2.  OBJECTIVES.

    a.   To determine the effectiveness of classification personnel in
         implementing the classification program.

    b.   To determine whether classification practices and performance
         conform to DOE policy.

    c.   To evaluate the effectiveness of locally developed methods of
         implementing DOE classification policy and regulations.

    d.   To evaluate the adequacy of the classification guidance and control
         provided by DOE and DOE contractor organizations to their
         subordinate elements.

3.  STANDARDS AND PROCEDURES.

    a.   Appraisal Guidance and Instructions.  This chapter presents policy,
         objectives, and general guidance regarding standards and procedures
         to be used in conducting classification appraisals.  Detailed
         instructions and specific guidance on the conduct of appraisals,
         including preparation for appraisals, suggested formats for
         workpapers and reports, and suggested methods for gathering and
         evaluating relevant information, are contained in the DOE
         Classification Appraisal Procedural Guide developed and promulgated
         under the authority of SA-20.

    b.   Scope of Appraisals.  The classification programs of the various
         Departmental Elements and DOE contractor organizations differ in
         scope, complexity, and sensitivity.  No single list of points to be
         covered in an appraisal is, therefore, appropriate in all cases.
         The list of areas below is presented merely as a guideline; it
         should serve to introduce a measure of uniformity into appraisal
         reports and to remind the appraisers of areas that may need
         attention.  An appraisal should provide answers to those of the
         following questions that are applicable:

         (1)  Management Awareness.  How actively does management keep
              informed of current DOE classification policy, especially as
              it applies to information, projects, and materials under their
              purview?

         (2)  Management Support.  What is the position of the
              classification function and the Classification Officer in the
              organization?  Are sufficient resources available to the
              Classification Officer?  If the Classification Officer has
              additional duties, do the Classification Officer and any
              assistants devote sufficient time to classification matters?

         (3)  Practices.  How closely do classification practices comport
              with DOE policy?  (The answer should be based on a review of
              representative samplings of classified and unclassified
              correspondence, records, procurement forms, financial reports,
              etc.).

         (4)  Classification Guidance.  How complete, effective, and timely,
              is the guidance developed for classified projects?  (Appraisal
              of a contractor organization should include review of the
              classification guidance of both the contractor and
              subcontractor organizations and the resulting classification
              practices.)  Have local classification guides been prepared
              for all classified work being performed?  Are they kept
              current?

         (5)  Education Program.  How active and effective is the education
              program for indoctrination and instruction of all individuals
              in applicable classification policies, principles, guidance,
              and procedures?

         (6)  Classification Board.  If a board has been appointed, what is
              its purpose, who is on it, what is the frequency of its
              meetings, and is it effective?

         (7)  Classifying and Declassifying Officials.  How current is the
              appointment of Authorized Classifiers and Authorized
              Declassifiers?  Are their numbers, locations, and
              qualifications appropriate?

         (8)  Declassification.  Is a declassification program needed?  If
              there is a program, is it being effectively administered?

         (9)  Appraisals.  How thorough is the appraisal system in
              determining compliance with approved guidance?  Are
              subcontractor appraisals being conducted?

         (10) Other Classifying Organizations.  Do any organizations other
              than DOE (for example, DOD) have classification
              responsibilities regarding sole or joint programs at the
              organization being appraised?  If there are inconsistencies
              between DOE classification guidance and other guidance, have
              actions been taken to resolve them?

         (11) Non-nuclear Programs.  In Field Elements with jurisdiction
              over non-nuclear programs, have procedures been implemented
              for periodic review of these programs for possible need for
              classification?  If so, are these review procedures timely and
              comprehensive?  Have the personnel responsible for the review
              been properly trained and designated with appropriate
              classification authority?

    c.   Frequency of Appraisals.  The scope and frequency of appraisals
         shall be determined by the management of the appraising
         Departmental Element after consideration of the following factors:

         (1)  Past Performance Experience and Appraisal Results.  Problem
              areas and key functions representing potential trouble spots
              should be identified for frequent review.

         (2)  Interval Since Last Appraisal.  Every function having a major
              classification interest should be appraised every 2 years
              unless particular circumstances indicate otherwise.  Effective
              classification programs or functions having a minor
              classification interest may be appraised on a less frequent
              basis (3-5 years).  Ineffective programs or those with key
              personnel turnover may require more frequent (i.e., less than
              2 years) appraisals.  The local Classification Officer shall
              determine if particular circumstances justify exceptions to
              the 2-year appraisal frequency for classification functions
              within that office's purview, based upon individual program
              effectiveness.

         (3)  Management's need for information.

         (4)  Number of classified contracts administered by a Departmental
              Element.

    d.   Visits.

         (1)  Classification performance should be evaluated on the basis of
              a visit to the Departmental Element or contractor organization
              being appraised.  A classification appraisal based not on a
              visit but on performance as revealed by matters raised by the
              organization itself or incidentally exposed may neglect many
              factors.  Various units within the Departmental Element or
              contractor organization may be unaware that their
              classification practices are incorrect or may be reluctant to
              call attention to them.  Appraisals of a Departmental Element
              or contractor organization based on personal visits should
              include an inspection of classification practices of the
              various units and a classification review of both outgoing and
              internal papers and records.  In cases where visits for
              classification appraisals may be impractical (e.g., that of a
              contractor who has responsibility for numerous small
              subcontractors), appraisals may be made without visits,
              provided all other requirements of this Order regarding
              appraisals are met.

         (2)  Written records should be kept of all information gathered
              during a classification appraisal until the report is
              validated and approved.  These records form the basis for the
              conclusions presented in the appraisal report and can serve to
              clarify or substantiate these conclusions.  A suggested format
              for these written appraisal records is given in the DOE
              Classification Appraisal Procedural Guide.

    e.   Appraisal Reports.

         (1)  A written appraisal report is required.  It should include
              sufficient evaluation of the scope of the classification
              program listed on page VIII-1, paragraph 3, or equivalent
              treatment at the discretion of the appraiser, to give a clear
              picture of classification performance.

         (2)  A format for appraisal reports is given in the DOE
              Classification Appraisal Procedural Guide.  Use of this format
              is recommended in order to increase the comparability and
              uniformity of appraisals.

         (3)  The report should inform both the Departmental Element
              appraised and the organization responsible for the appraisal
              of the adequacy of the classification program, and list as
              recommendations any problem areas and necessary corrective
              actions.  If a substantial number of recommendations appear in
              the report, they should be summarized for ready reference,

         (4)  Generally, no final report should be made without first
              informing the Head of the appraised Departmental Element of
              the appraisal results and the probable content of the report.

         (5)  The appraisal report on a Departmental Element shall be
              submitted to the Head of that Departmental Element, and copies
              forwarded to the HQ Element with primary interest in its
              operations, SA-1, and, if appropriate, to Secretarial
              officers.

         (6)  The appraisal report on a subordinate element or a contractor
              organization by the Field Element administering the contract
              shall be filed in that Field Element, and a copy provided to
              SA-20.

         (7)  The appraisal report on a subcontractor organization by the
              contractor organization administering the contract shall be on
              file at the contractor organization, with a copy provided to
              the Departmental Element administering the prime contract and
              a copy provided on request to SA-20.

    f.   Followup.

         (1)  Where recommendations for action on minor deficiencies have
              been submitted to responsible management, the adequacy of
              their implementation shall normally be determined and reported
              in the next appraisal.  However, if measures are required to
              correct major deficiencies, a followup, at least by
              correspondence, shall be instituted by the appraising
              Departmental Element or contractor organization in a timely
              manner.

         (2)  A schedule for implementation of any necessary corrective
              actions should be prepared by the appraised Departmental
              Element or contractor organization and submitted to the
              appraising Departmental Element or contractor organization,
              which should institute measures to monitor the progress of
              implementation of corrective measures.