1. (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.

2. (b) A PNOV must indicate:

   1. (1) The date, facts, and nature of each act or omission upon which each alleged violation is based;
   2. (2) The particular requirement involved in each alleged violation;
   3. (3) The proposed remedy for each alleged violation, including the amount of any civil penalty; and
   4. (4) The obligation of the contractor to submit a written reply to the Enforcement Director within 30 calendar days of receipt of the PNOV.

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

   1. (1) The reply must:

      1. (i) State any facts, explanations and arguments that support a denial of the alleged violation;
      2. (ii) Demonstrate any extenuating circumstances or other reason why a proposed remedy should not be imposed or should be mitigated;
      3. (iii) Discuss the relevant authorities that support the position asserted, including rulings, regulations, interpretations, and previous decisions issued by DOE; and
      4. (iv) Furnish full and complete answers to any questions set forth in the preliminary notice.
   2. (2) Copies of all relevant documents must be submitted with the reply.

4. (d) If a contractor fails to submit a written reply within 30 calendar days of receipt of a PNOV:

   1. (1) The contractor relinquishes any right to appeal any matter in the preliminary notice; and
   2. (2) The preliminary notice, including any proposed remedies therein, constitutes a final order.
5. (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]