(a) Scope. Outlines AF policy regarding the use of production aircraft for flight mission other than normal ferrying operations. Production aircraft are defined as follows: Any aircraft being manufactured for use in the operational inventory.

(1) Preaccepted aircraft: Any aircraft which has not been "accepted" (DD Form 250, "Material Inspection and Receiving Report," not signed) by the government representative at the contractor's facility, but for which the Government has assumed Flight Risk responsibilities.

(2) Accepted aircraft: Any aircraft which has been "accepted" by the Government representative (DD Form 250 signed but not yet delivered to the receiving service).

(b) Applicability. Applies to the AFSC, contract management regions, and cognizant government representatives (Air Force or Navy).

(c) Policy. (1) Contract management region commanders or their delegated government representatives may authorize the use of production aircraft for emergency flights. AFSC (SCMOO) will be notified of the circumstances involved upon the completion of a mission involving the use of production aircraft. Contract management region commander will also be notified if the emergency flight(s) is authorized by a delegated representative of the CMR commander.

(2) Care will be exercised in selecting aircraft for emergency missions, to avoid the necessity of performing a 25-hour or 50-hour check prior to arrival at the domestic destination designated in shipping instructions. Action will be taken

to insure that no additional expense is borne by the contractor for maintenance or service of the aircraft as a result of such missions.

(3) Local flights by AF or contractor pilots for transition training in specific type production aircraft may be authorized by the local government representative.

(4) In any of the above cases, care will be exercised to select aircraft which have not been reported as available for delivery. Where the case is deemed to be of sufficient importance to warrant the use of aircraft previously reported available, immediate steps will be taken to cancel the availability notice and explain such cancellation.

[28 F.R. 5003, May 18, 1963]

§ 1059.202 Control of test/acceptance and demonstration flights.

(a) Scope. Sets forth the policy for control of test/acceptance and demonstration flights of production aircraft as well as test support and bailment aircraft.

(b) Applicability. Applies to flights of aircraft being produced for the Air Force by contractors and for which the Air Force has assumed liability for Flight Risks according to contractual provisions.

(c) General. In the interest of exercising every reasonable safety precaution in the performance of flying these aircraft, CMR, APRE, and APRFE commanders will establish and maintain procedures to assure positive supervision of the aircraft under their jurisdiction.

(d) Policies and procedures. (1) Support flights, not included in a test/ acceptance flight program approved by the Government under a specific contract, may be made on authority of the CMR commander or his delegated government representative.

(2) Demonstration flights will be performed according to provisions of AFR 60-6 (Participation in Goodwill Flights, Aerial Reviews and Weapons Demonstrations).

(3) CMR, APRE, and APRFE commanders will assure that contractor flight crew personnel are professionally qualified according to current regulations.

(4) All flights will be conducted according to AF regulations.

(5) Normally, all test/acceptance flying will be conducted under VFR condi

tions during the hours of daylight. However, CMR, APRE, and APRFE commanders may authorize test/acceptance flights under other conditions when deemed necessary to more effectively accomplish the AF mission.

(6) Formation take-offs are prohibited. Flight tests requiring low altitude flying will be performed over areas specifically approved for this purpose.

(7) CMR, APRE, and APRFE commanders will insure that all practicable crash/rescue equipment is available to insure safeguarding of life and property in the event of crash landings.

(e) Responsibility for adequacy of airport and flying facilities. CMR, APRE, and APRFE commanders will insure that the airport and its facilities are adequate for safe operation of the aircraft to be flown.

(f) Flights requiring escorts. It is AF policy that first flights of initial article production aircraft, plus such subsequent flights as deemed necessary, and all flights of any test aircraft which are of a suspected hazardous nature will be accompanied by an "observer" aircraft. [28 F.R. 5003, May 18, 1963, as amended at 30 F.R. 16266, Dec. 30, 1965]

Subparts C Through D-[Reserved] Subpart E-Financing of Engineering and Development or "Product Improvement"

SOURCE: The provisions of this Subpart E appear at 25 F.R. 7648, Aug. 11, 1960, unless otherwise noted.

§ 1059.502 Definition.

As used herein the term "product improvement" is a program of continuing engineering and development leading to improvement of weapons systems (airframes, engines, electronics and related equipments) and operational support equipment.

from an equal input of labor and material.

(c) Small increases in performance. Defined as model-to-model improvement, usually relatively minor improvements in function, performance, or reliability of the production article.

(d) Large increase in performance. Development of equipment which is different in major respects from equipment being produced, and giving large increases in performance, but which remains the same type or category of product.

NOTE: These categories will not be construed to permit basic development to be carried on as product improvement.

(a) Product improvement may be included in an Air Force contract at time of initiation or later by contract supplement by specifying the principal engineering items and amounts of money required for each item, or it may be initiated by a separate contract.

(b) It is necessary to distinguish between costs of a product improvement program proper, and changes in unit costs resulting from a product improvement. An increase in price of an end article caused by an improvement to the article through a product improvement program is not chargeable to the product improvement proposal, but is charged to production costs.

Subpart F-Special Procurements § 1059.601 Applicability of subpart.

This subpart applies to AFSC/AFLC procuring activities who are concerned with the procurement, production, and support of training equipment for all systems, and procurement of petroleum products in connection with AF contracts.

[30 F.R. 3596, Mar. 18, 1965]

§ 1059.602 Procurement of training equipment.

(a) Policy. The normal practice will be to procure all training equipment on a competitive basis to the greatest extent economically and technically feasible.

(1) Training equipment common to more than one system and Flight Simulators will normally be procured as Category II as defined in AFR 70-9 (System Procurement).

(2) The appropriate category of procurement, as defined in AFR 70-9, for

those training equipments peculiar to a specific system, will be determined after receipt of contractor's training equipment planning information or applicable performance specification. Such training equipment will not be purchased as Category I except as provided for in subparagraph (3) of this paragraph.

(3) Where the use of Category I procurement is unavoidable, due to economic, technical, and other compelling considerations, the use of "make-orbuy," § 3.902 of this title is to be implemented to the maximum extent possible. Each individual training device must be identified and subject to a "make-orbuy" decision. For example, within a mobile training unit, each individual trainer will be subject to a "make-orbuy" decision. Where the decision is "buy," every effort will be put forth to require the prime contractor to achieve optimum competition. In no event should a decision to "make" be approved by the Air Force where it represents an expansion of the prime's facilities at government expense while adequate facilities already exist elsewhere in industry.

(b) Procedures. (1) The cognizant procuring office will require system prime contractors to submit training equipment planning information prepared according to applicable specifications beginning with and as a part of the systems technical proposals. The contractor will also be required to provide estimated costs associated therewith including initial spares and supporting technical data.

(2) Qualitative and quantitative requirements (see AFR 375-4 (System Program Documentation) and AFR 50-19 (Management of Training Equipment)).

(3) Configuration Changes (see AFR 65-3 (Configuration Management), AFR 50-19, and AFR 57-4 (Modification/ Modernization of Systems and Equipment)).

(i) According to instruction contained in applicable ANA Bulletin 445 weapon systems prime contractors will be required to automatically indicate by addendum to weapon systems ECPS any instance wherein the ECP also affects the supporting training equipment. This pertains only to changes recommended

for incorporation on the training equipment while it is in production.

(ii) Changes to training equipment not in support of a specific system will be accomplished according to AFR 50-19 and AFR 57-4.

[29 F.R. 8065, June 25, 1964, as amended at 30 F.R. 795, Jan. 26, 1965; 32 F.R. 8964, June 23, 1967]

§ 1059.604 Procurement of petroleum and propellants (aircraft and missiles).

(a) Definitions. As used in this section the following terms are defined:

(1) Category I-Petroleum-Reciprocating engine aircraft fuels and lubricating oils, turbine and jet engine aircraft fuels, and lubricating oils and related services.

(2) Category II-Petroleum products other than those in Category I and related services.

oxi

(3) Category III-Propellants, dizers, pressurants, and related products and services.

(b) Policy. (1) Except for bailed aircraft, the products in Category I will be Government furnished property (GFP) or contractor furnished property (CFP) depending on which method provides the greater advantage to the Government. When USAF aircraft are bailed to a contractor for use in connection with AF contract performance, Category I products issued at AF bases will be Government furnished. Category I product requirements to support bailed aircraft at other than USAF bases will not be GFP unless the ACO has provided identification of the locations and obtained concurrence from Detachment 29, Hq SAAMA (SAOMR), Cameron Station, Va. 22314.

(2) Products in Category II which are depot stocked (DGSC Supply Status Code 1) will be GFP or CFP depending on which method provides the greater advantage to the Government. Products in Category II which are not depot stocked will normally be contractor furnished.

(3) Products in Category III will be supplied from Government generating facilities to maximum extent possible. [32 F.R. 8964, June 23, 1967]