paragraph, and, in addition, where applicable, as described in paragraph (b), (c), (d) or (e) of this section (in complying with such requests, the contractor may also submit other statements and evidence which he may consider helpful to the case):

(1) If written contracts are involved, a brief description of the contracts, indicating the dates of execution and amendments thereto, the items being procured, the price or prices and delivery schedule and revisions thereof, and such other special contractual provisions as may be relevant to the request:

(2) A history of performance indicating when work under the contracts or commitments was begun, the progress I made to the present, an exact statement E of the contractor's remaining obligations, and the contractor's expectations regarding completion thereof;

(3) A statement of payments received, payments due, and payments yet to be received or to become due, including advance and progress payments, and amounts withheld by the Government, and information as to other obligations Eof the Government, if any, which are yet to be performed under the contract;

(4) A statement giving a detailed analysis of the monetary elements of the request including precisely how the actual or estimated dollar amount of the request was arrived at, the effect of approval or denial on the contractor's profits before Federal income taxes, and whether the costs for which reimbursement is requested have been included as a part of his gross costs in statutory renegotiation proceedings, together with the contractor's renegotiation status for the relevant years;

(5) If a written contract is involved, a statement of the contractor's understanding of why the subject matter of the request cannot now, and could not at the time it arose, be disposed of under the terms of the contract itself;

(6) The best evidence available to the contractor in support of any facts alleged by the contractor, including contemporaneous memoranda, correspondence, affidavits, and any other material tending to establish matters of fact;

(7) Relevant financial statements, cost analyses, or other such data, preferably certified by a certified public accountant, including such additional financial data as is necessary to explain fully and to support the monetary elements of the request for adjustment;

(8) A list of persons (within the Department of Defense, in the employ of the contractor, or otherwise connected with the contract) who have some factual knowledge of the subject matter, including where possible the name, office or title, address and telephone number of each such person;

(9) A statement and evidence of steps taken to mitigate loss and reduce claims to a minimum; and

(10) Such other statements or evidence as may be requested by the contracting officer.

(b) Amendments without consideration under § 17.204-2(a). In addition to the facts and evidence listed in paragraph (a) of this section, where a request involved possible amendment without consideration, and essentiality to the national defense is a factor, the contractor shall be asked to furnish such of the following as is deemed appropriate to the request:

(1) A statement and evidence of the contractor's original breakdown of estimated costs, including contingency allowances and profit;

(2) A statement and evidence of the contractor's present estimate of total costs under the contracts involved if enabled to complete, broken down between costs accrued to date of request, and runout costs, and as between costs for which the contractor has made payment and those for which he is indebted at the time of the request;

(3) A statement and evidence of the contractor's estimate of the final price of the contracts involved giving effect to all escalation, changes, extras and the like, known or contemplated by the contractor;

(4) A statement of any claims known or contemplated by the contractor against the Government involving the contracts in question, other than those stated in response to subparagraph (3) of this paragraph;

(5) An estimate of the contractor's total profit or loss under the contracts involved if enabled to complete at the estimated final contract price (see subparagraph (3) of this paragraph) broken down between profit or loss to date, and runout profit or loss;

(6) An estimate of the total profits from other Government business, and all other sources, during the period from the date of the first contract involved to the estimated date of completion of all the contracts involved;

(7) A statement of the amount of any tax refunds and an estimate of those anticipated during or for the period from the date of the first contract involved through the estimated completion date of all the contracts involved;

(8) A statement in detail as to efforts the contractor has made to obtain funds from commercial sources to enable him to complete performance of the contracts involved;

(9) A statement of the minimum amount necessary as an amendment without consideration to enable the contractor to complete performance of the contracts involved, and the detailed basis for that amount;

(10) An estimate of the time required to complete each contract, if the request is granted;

(11) A statement of the factors which have caused the loss under the contracts involved;

(12) A statement as to the course of events anticipated if the request is denied;

(13) Balance sheets, preferably certified by a certified public accountant, as of the end of the contractor's fiscal year first preceding the date of the first contract, as of the end of each subsequent fiscal year, as of the date of the request, and projected as of the date of completion of all the contracts involved assuming the contractor is enabled to complete the contracts at the final prices estimated pursuant to subparagraph (3) of this paragraph, together with income statements for annual periods subsequent to the date of the first balance sheet (Balance sheets and income statements should be both consolidated, and by affiliates, and should show all transactions between the contractor and his affiliates, stockholders, and partners, including loans to the contractor guaranteed by any stockholder or partner); and

(14) A list of all salaries, bonuses and all other forms of compensation of the principal officers or partners and of all dividends and other withdrawals, and all payments to stockholders in any form since the date of the first contract involved.

(c) Amendments without consideration under § 17.204-2(b). In addition to the facts and evidence listed in paragraph (a) of this section, where a request involves possible amendment without consideration because of Government action, and essentiality to the national defense is not a factor, the contractor

shall be asked to furnish such of the following as is deemed appropriate to the request:

(1) A clear statement of the precise Government action which the contractor considers caused a loss under the contract with evidence to support each essential fact;

(2) A statement and evidence of the contractor's original breakdown of estimated costs, including contingency allowances, and profit;

(3) The estimated total loss suffered under the contract, with detailed supporting analysis; and

(4) The estimated loss resulting from the Government action, with detailed supporting analysis.

(d) Correction of mistakes. In addition to the facts and evidence listed in paragraph (a) of this section, where a request involves possible correction of a mistake, the contractor shall be asked to furnish such of the following as is deemed appropriate to the request:

(1) A statement and evidence of the precise mistake or error that was made, the ambiguity that exists, or the misunderstanding that arose, showing of what it consisted and how it occurred, and the intention of the parties;

(2) A statement explaining when the mistake was discovered, when notice of mistake was given to the contracting officer, and whether given before completion of work under, or the effective date of termination of, the contract;

(3) An estimate of loss or profit under the contract with detail supporting analysis; and

(4) An estimate of the increase in cost to the Government resulting from the adjustment requested with detailed supporting analysis.

(e) Formalization of informal commitments. In addition to the facts and evidence listed in paragraph (a) of this section, where a request involves possible formalization of an informal commitment, the contractor shall be asked to furnish such of the 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 officer or official making such statement;

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

contractor

(3) Evidence that the 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.

[28 F.R. 4893, May 16, 1963]

§ 17.208 Processing cases. [25 F.R. 14325, Dec. 31, 1960]

Officers and officials listed in § 17.203 (b) shall be responsible in all cases for making a thorough investigation 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. The investigation shall establish (a) the facts essential to meeting the standards for deciding the particular case and (b) the essential facts as to who has authority to approve the request.

[28 F.R. 4894, May 16, 1963]

§ 17.208-2 Disposition tarial level.

below Secre

(a) Disposition. In each case where the request for relief is denied or approved finally below Secretarial level (see § 17.203), the approving authority shall sign a Memorandum of Decision, whether approving or denying the request, which memorandum 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;

(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"; and

(6) Identification of any of the foregoing information which is classified "Confidential," including "ConfidentialModified Handling Authorized," or higher.

(b) Records. Each of the following documents shall be submitted to the addressees set forth in § 17.207-3 within 30 days after the close of the month during which it is executed:

(1) Two copies of the Memorandum of Decision;

(2) One copy of the contractual document implementing any decision, approving contractual action; and

(3) One copy of a final record, as prescribed in Subpart D of this part, prepared by the activity responsible for the case under § 17.203.

The item in subparagraph (2) of this paragraph will not be submitted in the case of the Army.

[25 F.R. 14326, Dec. 31, 1960]

§ 17.208-3 Submission of cases to the Contract Adjustment Board.

(a) Statement to Board. Cases to be submitted for consideration of the cognizant Contract Adjustment Board shall be forwarded by means of a letter signed by the officer or official responsible for the case under § 17.203. The letter shall state:

(1) The nature of the case;

(2) The basis for the Board's authority to act under §§ 17.202 and 17.203;

(3) The findings of fact essential to the case (see § 17.207-4) arranged chronologically with cross-references to supporting enclosures;

(4) The conclusions drawn from applying the standards for deciding cases, as set forth in § 17.204, to the findings of fact; and

(5) The disposition recommended, and, if contract action is recommended, the opinion of the signer that such action will facilitate the national defense; and

(6) Where the case involves a Mutual Security Act purchase within the scope of § 6.701-1 (b) of this chapter, a recommendation as to the impracticability of inclusion of the Examination of Records clause set forth in § 7.104-15 of this chapter (see §§ 17.206(e) and 6.701).

The letter shall inclose copies of the contractor's request, the evidentiary materials, and all indorsements, reports and comments of cognizant Government officials. The letter and enclosure shall be in duplicate.

(b) Amendments without consideration under § 17.204-2(a). A letter to the Board recommending an amendment without consideration under the standards of § 17.204-2(a), should, in addition to the requirements of paragraph (a) of this section, ordinarily cover, with supporting data as appropriate, the findings and conclusions with respect to all of the items set forth in § 17.207-4(b) and, in addition, findings as to:

(1) The contractor's performance record, including the quality of product, rate of production and promptness of deliveries;

(2) The importance to the Government, particularly to the operating forces, of the performance of the contract by contractor and the importance of the contractor to the national defense; (3) Forecast of future contracts with the contractor; and

(4) Other available sources of supply for the supplies or services covered by the contract, and the time and cost of having contract performance completed by such other sources.

Cases to

(c) Forwarding to Boards. be submitted to the Boards shall be forwarded through the following channels:

(1) In the Army and the Navy, normally, each case shall be sent from the Head of a Procuring Activity directly to the Board;

(2) In the Air Force, normally, each case shall be sent through the Deputy Chief of Staff, Systems and Logistics, Headquarters, USAF, Attn: AFSPM-PO, and after review there, to the Board; and

(3) In the Defense Supply Agency, each case shall be sent to Headquarters, DSA for further processing.

[25 F.R. 14326, Dec. 31, 1960, as amended at 28 F.R. 4895, May 16, 1963]

§ 17.208-4 Processing by Contract Adjustment Boards.

dum of Decision shall omit any information classified "Confidential," including "Confidential-Modified Handling Authorized," or higher. The Board's decision will be communicated to the appropriate officer or official for implementing action.

(b) Records. When the Board decisions are implemented, the documents listed in § 17.208-2(b) (2) and (3) shall be prepared and submitted to the cognizant Board. The activity which forwarded the case to the Board shall be responsible for the preparation and submission of these documents.

[25 F.R. 14326, Dec. 31, 1960, as amended at 30 F.R. 14094, Nov. 9, 1965]

§ 17.208-5

Maintenance of records.

The records required by §§ 17.207-3, 17.208-2(b), and 17.208-4 (a) and (b) shall be maintained in the Army by DCSLOG, in the Navy and Air Force, by the respective Boards, and in the Defense Supply Agency, by Headquarters, DSA. [27 F.R. 6139, June 29, 1962]

§ 17.208-6 Interdepartmental coordina tion.

(a) General. Where a case involves matters of interest to more than one department or agency, any interested Military Department shall maintain liaison with other Military Departments and other departments and agencies of the Government and may take such joint action as may be proper under the circumstances, including holding joint meetings or hearings.

(b) Cases involving funds of other Military Departments. Requests for adjustment within any category, where the funds of other than the procuring Department may be required, shall not be approved by the procuring Department until advice is requested and received from the requiring Department that additional funds will be made available. The request for such advice shall disclose the following data:

(1) Contractor's name;

(2) MIPR number;

(3) Contract number;

(4) Amount of proposed relief;

(5) Brief description of the procurement; and

responsibility of the Department considering such request.

(c) Amendments without consideration involving other Military Departments. Requests for amendments without consideration, where essentiality to the national defense is an issue and involves another Military Department, shall not be finally determined by one Department until advice on such issue is requested and received from the other Department. When such advice is received, the responsibility for taking the appropriate action, if any, shall be with the Department considering the request. [25 F.R. 14326, Dec. 31, 1960]

Subpart C-Residual Powers

SOURCE: The provisions of this Subpart C appear at 25 F.R. 14327, Dec. 31, 1960, except as otherwise noted.

§ 17.300 Scope.

This subpart describes the delegations of authority, and the standards and procedures for the exercise of residual powers under the Act. The term "residual powers" as used in this subpart includes all the authority under the Act except that which is covered by Subpart B of this part and the authority to make advance payments.

§ 17.301 Delegations of authority.

Authority to take actions under the residual powers of the Act is vested in the Secretary of each Department and may be defined and delegated in writing by him within his Department; provided, however, that authority to approve actions obligating the United States in excess of $50,000 shall not be delegated below the Secretarial level, and authority to approve actions obligating $50,000 or less shall not be delegated below the Head of a Procuring Activity in the Army, the Navy and the Defense Supply Agency and, in the Air Force, the Director of Procurement and Production, Headquarters, AMC. Copies of all delegations and successive redelegations shall be transmitted to the Assistant Secretary of Defense for Installations and Logistics at the time of issuance. [27 F.R. 6139, June 29, 1962]

In order that adequate records of actions by each Department pursuant to the Act may be maintained, § 17.207-3 requires the preparation of a preliminary record when each request is filed for an adjustment under standards set forth in § 17.204; and §§ 17.208-2(b) (3) and 17.208-4(b) require 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 § 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. [28 F.R. 4895, May 16, 1963] § 17.401

Preliminary records.

Each preliminary record prepared pursuant to § 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;