following as is deemed appropriate to the request:

(1) Copies of any written instructions or assurances, or a statement under oath as to any oral instructions or assurances made to the contractor, with identification of the Government official making such statement;

(2) A statement as to when the property or services were furnished or arranged to be furnished, and to whom;

(3) Evidence that the contractor relied upon the instructions or assurances, with a full description of the circumstances which led him so to rely, and that the contractor intended, at the time of performing the work, to be compensated directly for it by the Government and did not anticipate recovery of the costs in some other way;

(4) A cost breakdown supporting the amount claimed as a fair compensation for the work performed; and

(5) A statement and evidence of why it was impracticable to provide for the work performed in an appropriate contractual instrument.

§ 1-17.208 Processing cases.

All cases shall be processed in accordance with the general policy set forth in § 1-17.102(c).

§ 1-17.208-1 Investigation.

A thorough investigation shall be made of all facts and issues relevant to each case. Facts and evidence shall be obtained from contractor and Government personnel, and shall include signed statements of material facts within the knowledge of individuals where documentary evidence is lacking, and audits where considered necessary to establish financial or cost facts.

§ 1-17.208-2 Interagency coordination.

Where a case involves matters of interest to more than one agency of the Government, such agencies should maintain liaison with each other for the purpose of determining whether joint action may be taken under the circumstances.

§1-17.208-3 Disposition.

(a) In each case, the approving authority (if a contract adjustment board, the Chairman), whether ap

proving or denying the request, shall sign a Memorandum of Decision which shall be dated and shall contain the following:

(1) The name and address of the contractor, the contract identification, and the nature of the request;

(2) The decision reached and the actual cost or estimated potential cost, if any, of the decision;

(3) A concise description of the property or services involved;

(4) A statement of the circumstances justifying the decision; and

(5) If some adjustment action is approved, a statement in substantially the following form: "I find that the action authorized herein will facilitate the national defense."

(b) Where the Memorandum of Decision contains information which is classified "Confidential" or higher, such information shall be identified in the Memorandum. In lieu of including classified information in the Memorandum, such information may be set forth in a separate classified document which is referenced in the Memorandum.

§ 1-17.301 Statutory limitation on delegation of authority.

Authority to approve actions obligating the United States in an amount in excess of $50,000 under the residual powers of the Act shall not be delegated below the secretarial level.

§ 1-17.302 Standards for using residual powers.

Subject to the limitations contained in § 1-17.205-1, the residual powers may be used in accordance with the policies set forth in § 1-17.102 where such use is deemed necessary and appropriate.

§ 1-17.303 Procedures.

(a) With respect to each proposal for the exercise of residual powers, the approving authority shall sign a memorandum containing information substantially as set forth in § 1-17.208-3.

(b) Every contract entered into or amended or modified under the residual powers shall comply with the provisions of § 1-17.206.

§1-17.304 Records.

A copy of each memorandum required by § 1-17.303(a) shall be retained in the agency files.

Subpart 1-17.4-Records of Requests and Dispositions

§ 1-17.400 Scope of subpart.

In order that adequate records of actions taken pursuant to the Act may be maintained, § 1-17.207-3 requires the preparation of a preliminary record when each request is filed for any adjustment under the standards set forth in § 1-17.204, and § 1-17.208-4 requires the preparation of a final record indicating the disposition of the request. This subpart describes in detail the information which should be included in these records. A suggested format for the records is shown in § 1-17.403. It is designed so that the information required for the preliminary and final record with respect to each request may be combined on the same form.

§ 1-17.401 Preliminary records.

Each preliminary record prepared pursuant to § 1-17.207-3 should contain the following information:

(a) Type of record. The fact that the record is a preliminary record should be indicated.

(b) Date of contractor's request. The date on the face of the contractor's request for adjustment should be inserted.

(c) Date received by Government. The date the request for adjustment is received in any Government office to which the contractor may properly submit his request should be inserted.

(d) Name and address of contractor. The full and correct name and address of the contractor filing the request should be inserted. If the contractor is a small business, this fact should be indicated.

(e) Name and address of contractor's representative, if any. If a particular named person (employee, attorney, etc.) is the point of contact with the contractor, his full name and address should be inserted.

(f) Cognizant contracting officer or office. The contracting officer administering the contract for which an adjustment was requested or, if none, the contracting officer or office cognizant of the request should be inserted.

(g) Procuring activity. The name of the procuring activity with jurisdiction over the contracting officer or office referred to in (f) above should be inserted.

(h) Property or service involved. A brief description of the item being procured or services being rendered should be inserted.

(i) Extent of performance as of date of request. A brief indication, as of the date of the request, of the degree of completion of the contract should be inserted; for example, 50 percent completed, or performance not yet begun. If work is completed, indicate date of completion and whether final payment has been made.

(j) Contract number and date. The identifying numbers and dates of the contracts for which an adjustment is requested should be inserted. If there is no contract, then the word "None" should be inserted. If the question arises under a letter of intent, then

that fact and the date of such letter should be inserted.

(k) Advertised or negotiated. Whether the contract was entered into pursuant to advertising or negotiation should be indicated. If negotiated, the specific authority should be indicated, e.g., "Neg. 302(c)(14) of FPAS Act" (Federal Property and Administrative Services Act of 1949).

(1) Type of contract. The type of contract involved (see Subpart 1-3.4) should be inserted, e.g., "FFP" (firm fixed price), "CPFF"" (cost-plus-afixed-fee), or "T&M" (time and materials).

(m) Category of case. Whether the request involves an amendment without consideration, a mistake, or an informal commitment should be indicated. If the case involves two or more categories, each should be indicated; however, the most significant category involved should be listed first.

(n) Amount or description of request. If the request is expressed in dollars, as a change in price, then that fact should be inserted as follows: "$5,250 increase" or "$5,250 decrease." If the request seeks an adjustment which cannot be expressed in monetary terms, then some brief description of it should be inserted, such as "Cancellation" or "Modification of Terms." The fact that an adjustment is not easily expressed in dollar terms should not deter an estimate if such an estimate is made by the contractor in his request.

(0) Date this record signed. The date on which the record is signed should be inserted.

(p) Signature. The record should be signed by an authorized representative of the reporting authority.

§ 1-17.402 Final records.

Each final record prepared pursuant to § 1-17.208-4 should contain the information listed in (b) through (p) of § 1-17.401 and, in addition, should contain the following information:

(a) Type of record. The fact that the record is a final record should be indicated.

(b) Action below secretarial level. The disposition of the case, the office which took action, and the date thereof should be inserted. The disposition should be indicated as: "withdrawn," "denied," "approved," or "forwarded." If the request was approved in whole or in part, the dollar amount or nature of the action should be indicated in a manner similar to that described in § 1-17.401(n). Where the request is denied or approved, the date should correspond to the date of the Memorandum of Decision issued in accordance with § 1-17.208-3.

(c) Action at secretarial level. The disposition of the case at secretarial level and the date thereof should be indicated in a manner similar to that described in § 1-17.402(b).

(d) Implementation and date. The nature of the contractual document or correspondence which implements the decision of the approving authority should be indicated as follows: "amendment," "new contract," or "letter of denial."

§ 1-17.403 Sample format for preliminary and final records.

The following is a suggested format for the preliminary and final records described in §§ 1-17.401 and 1-17.402:

Subpart 1-17.5-Act and Executive Order

§ 1-17.500 Scope of subpart.

This subpart sets forth in full the Act and the Executive Order.

§1-17.501 The Act of August 28, 1958 (Public Law 85-804; 50 U.S.C. 14311435).

The Act is as follows:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President may authorize any department or agency of the Government which exercises functions in connection with the national defense, acting in accordance with regulations prescribed by the President for the protection of the Government, to enter into contracts or into amendments or modifications of contracts heretofore or hereafter made and to make advance payments thereon, without regard to other provisions of law relating to the making, performance, amendment, or modification of contracts, whenever he deems that such action would facilitate the national defense. The authority conferred by this section shall not be utilized to obligate the United States in an amount in excess of $50,000 without approval by an official at or above the level of an Assistant Secretary or his Deputy, or an assistant head or his deputy, of such department or agency, or by a Contract Adjustment Board established therein.

SEC. 2. Nothing in this Act shall be construed to constitute authorization hereunder for

(a) The use of the cost-plus-a-percentageof-cost system of contracting;

(b) Any contract in violation of existing law relating to limitation of profits;

(c) The negotiation of purchases of or contracts for property or services required by law to be procured by formal advertising and competitive bidding;

(d) The waiver of any bid, payment, performance, or other bond required by law;

(e) The amendment of a contract negotiated under section 2304(a)(15), title 10, United States Code, or under section 302(c)(13)1 of the Federal Property and Administrative Services Act of 1949, as amended (63 Stat. 377, 394), to increase the contract price to an amount higher than the lowest rejected bid of any responsible bidder; or

(f) The formalization of an informal commitment, unless it is found that at the time the commitment was made it was impracti

'Section 302(c)(13) amended by Public Law 85-800 to read 302(c)(14).

cable to use normal procurement procedures.

SEC. 3. (a) All actions under the authority of this Act shall be made a matter of public record under regulations prescribed by the President and when deemed by him not to be detrimental to the national security.

(b) All contracts entered into, amended, or modified pursuant to authority contained in this Act shall include a clause to the effect that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment, have access to and the right to examine any directly pertinent books, documents, papers, and records of the contractor or any of his subcontractors engaged in the performance of and involving transactions related to such contracts or subcontracts.

SEC. 4. (a) Every department and agency acting under authority of this Act shall, by March 15 of each year, report to Congress all such actions taken by that department or agency during the preceding calendar year. With respect to actions which involve actual or potential cost to the United States in excess of $50,000, the report shall

(1) Name the contractor;

(2) State the actual cost or estimated potential cost involved;

(3) Describe the property or services involved; and

(4) State further the circumstances justifying the action taken.

With respect to (1), (2), (3), and (4), above, and under regulations prescribed by the President, there may be omitted any information the disclosure of which would be detrimental to the national security.

(b) The Clerk of the House and the Secretary of the Senate shall cause to be published in the Congressional Record all reports submitted pursuant to this section.

SEC. 5. This Act shall be effective only during a national emergency declared by Congress or the President and for six months after the termination thereof or until such earlier time as Congress, by concurrent resolution, may designate.

§ 1-17.502 Executive Order No. 10789 of November 14, 1958. 2

The Executive Order is as follows: AUTHORIZING Agencies oF THE GOVERNMENT TO EXERCISE CERTAIN CONTRACTING AUTHORITY IN CONNECTION WITH NATIONAL DEFENSE FUNCTIONS AND PRESCRIBING REGULATIONS GOVERNING THE EXERCISE OF SUCH AUTHORITY

By virtue of the authority vested in me by the act of August 28, 1958, 72 Stat. 972,

2 As amended by Executive Order No. 11051 of September 27, 1962.