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material in the file of the case, in that it will not include reports of investigation. Neither will it contain classified security information, information concerning the identity of confidential informants, or information which will reveal the source of confidential information.

Wherever appropriate, after a careful review of the case in the light of paragraph (h) of this section, the Chairman will include the following sentence in the opening statement:

However, you are hereby informed that security considerations in this case do not prohibit informing you fully of the relevant information against you and accordingly the substance of all the relevant information against you which has been referred to the Board for its consideration has been made available to you, or will be made available during the course of this hearing. You will be furnished a copy of the transcript to be made of this hearing if you request it.

(f) Following the opening statement, the Chairman will read the statement of charges (and interrogatories issued to the employee if any) and inform the employee that if he so desires he may make any statement he wishes and introduce any witnesses in his behalf. Statements by the employee and all testimony of witnesses must be made under oath or affirmation administered by the Chairman in the following manner:

Do you, (name of employee or witness) solemnly (swear) (affirm) that the testimony you are about to give in the case now in hearing shall be the truth, the whole truth, and nothing but the truth (so help you God)?

(g) Subsequent to the employee's statement, if any, and the introduction of such witnesses as he may desire, the hearing will proceed as directed by the Board. The Board may recess the hearing at any time and meet in executive session. During an executive session the Board may call the reporter to review any portion of the record of the hearing and may obtain technical assistance as desired from such persons as the legal adviser or a security officer. No transcript of an executive session will be made as such session is not considered a part of the hearing.

(h) Boards are directed to conduct proceedings in such manner as to protect from disclosure classified security information or information tending to compromise investigative sources or methods. While the Board's questions should cover all grounds for proposed removal and should be designed to give employees

the fullest possible opportunity consistent with security considerations to explain or refute derogatory information contained in the investigative reports, it is imperative that proposed lines of questioning be considered carefully in the light of security principles. (See § 889.20.) It is particularly important that security considerations be considered before the employee is notified, in accordance with paragraph (e) of this section, that he has been, or will be, informed of the substance of all the relevant information against him. In any case where doubt exists as to the propriety of a question or the advisability of revealing certain information, advice should be obtained, preferably in advance of the hearing. However, no information which does not appear in the statement of charges or which has been excluded from the hearing but which is relevant to the charges against the employee will be used as a basis for terminating his employment unless it has been excluded from the statement of charges and the hearing for valid security reasons, or unless it has been revealed to the employee during the adjudication process in such a manner that his ability to present a defense thereto has not been prejudiced.

(i) In each case, the Board should insure that the case file contains detailed information concerning the employee's regularly assigned position, and the opportunity afforded the occupant of the position to act to the detriment of the national security.

(j) Before the Board adjourns the hearing it should ask the employee or his counsel whether he desires additional time to secure and present evidence to the Board. Any period up to 30 days is permissible, but the employee should be urged to present his evidence as soon as possible. Usually the evidence will be in affidavit or documentary form.

(k) A verbatim stenographic transcript will be made of the hearing (prepared in quadriplicate) by qualified reporters and the transcript will be made a permanent part of the record in each case. The transcript will include a copy of the statement of charges and interrogatories issued to the employee, if any. No other transcript will be made.

(1) The employee will be furnished a copy of the transcript without cost if he, or his counsel or representative, requests it. The Board will review the

copy of the transcript to be given to the employee, before releasing it to him, to insure that it contains no classified security information. Advice on such matters should be requested from the appropriate Air Force security officer when deemed desirable. Deletions will be made only when required by security considerations, and a notation will be made on all copies retained by the Air Force of the portions which were deleted from the copy furnished the employee.

(m) If the employee or his counsel or representative desires to submit corrections in the transcript to the Board, he will note the corrections on a separate statement, designating the page and line. The statement of corrections must be filed within the time set by the Board. The Board will determine what corrections are allowable and will inform the employee thereof. It will enter upon the transcript by marginal notation the corrections which are allowed, and will enter on the statement filed by the employee, his counsel or representative, the corrections which are rejected. The statement filed by the employee, his counsel or representative, will be made a part of the original transcript so that it may be a permanent part of the complete file. The Board in its discretion may call upon the employee, his counsel or his representative, for a discussion of the corrections prior to its determination thereon. Corrections will be allowed solely for the purpose of conforming the transcript to the actual testimony, except as to matters deleted for security reasons as provided in paragraph (1) of this section.

§ 889.17 Hearing Board findings and recommendations. (a) As soon as practicable after the close of the hearing, the Hearing Board will meet in executive session for the purpose of arriving at its finding: and recommendation. The Board will consider the complete file, including the original file, the transcript of testimony at the hearing, any brief submitted by the employee or by his counsel or representative, and all other relevant material.

(b) The Board will take into consideration the fact that the employee may have been handicapped in his defense by the nondisclosure to him of classified security information or by the lack of opportunity to cross-examine persons constituting sources of information, and will weigh derogatory information care

fully in the light of its recency, relative seriousness, attendant circumstances, whether it was given under oath, whether it is relevant to the charges specified, whether the employee has had an opportunity to rebut it, and whether there is similar or supporting information.

(c) The Board will make its findings and recommendation in writing, which will be signed by all members of the Board voting for them. Dissenting opinions may be submitted.

(d) The findings will include:

(1) A finding with respect to each of the allegations set forth in the statement of charges and an analysis of the information and a detailed statement of the reasoning upon which each finding is based. Even though the Board finds that each of the allegations in the statement of charges is true, it need not recommend removal of the employee.

(2) Any other statement which may be helpful to the reviewing authorities.

(3) A finding in the following form:

Based on all the available information, it is found that the employment or retention in employment of (name of employee) (is) (is not) clearly consistent with the interests of the national security.

This finding will be supported by an analysis of the information and a detailed statement of the reasoning upon which the finding is based.

(e) If the Board finds that the employee's employment is clearly consistent with the interests of the national security, it will recommend that he be restored to his regularly assigned position. If it finds adversely to the employee, it may find further, on the basis of the criteria set forth in § 889.6, that the employee's employment would be clearly consistent with the national security if he were reassigned from his regularly assigned position to a non-sensitive position, and the Board may recommend such reassignment, if it has determined, after consultation with the commander, that a suitable vacancy exists and that the commander concurs in the reassignment. Commanders should positively assure themselves that a suitable vacancy under applicable Civil Service Commission and civilian personnel directives in fact does exist within their area of responsibility prior to concurring in such reassignment. The commander's concurrence will be made a matter of record and included in the file. In other cases, the Board

will recommend that the employee's employment be terminated.

(f) The Hearing Board will transmit the complete file directly to the Executive Secretary, Civilian Personnel Security Program. The complete file consists of all reports of investigation or other inquiry, all charges and interrogatories, all transcripts of hearings and exhibits, all memoranda analyzing the evidence or setting forth conclusions, findings, recommendations, determinations, decisions, or other action in the case, and all affidavits, supporting documents, correspondence or memoranda in connection with the investigation and processing of the case.

(g) Upon receipt of the case from the Hearing Board, the Executive Secretary will review the file for completeness and will transmit it to the Security Review Board.

§ 889.18 Action by Security Review Board. The Security Review Board will review the file to determine the regularity of the procedures followed, and to determine whether the information supports the findings and recommendation of the Hearing Board. It will consider any additional written evidence or brief submitted by the employee or his counsel or representative. It is authorized to take action necessary to correct any irregularities in the proceedings, and to obtain additional information pertinent to the resolution of issues in the case by remanding the case to the Hearing Board for further action, by requesting further investigation, by obtaining depositions, and otherwise. After the Security Review Board has made its findings and recommendation, it will submit the entire file to the Office of the Secretary of the Air Force for decision.

§ 899.19 Notice to employee. The Executive Secretary will notify the employee through the commander of the employing activity of the decision in the case. He will also notify the commander of the action to be taken in the case. Wherever appropriate, the notice will include personnel security clearance authority as prescribed in § 889.14 (c).

§ 889.20 Release of information. All Government personnel, including all members of the Boards, will comply with applicable directives pertaining to the safeguarding of classified security information and the handling of investigative reports. No classified security information or any information which might

compromise investigative sources, investigative methods, or the identity of confidential informants will be disclosed to any officer or employee whose case is being considered in this program or to his counsel or representative, or to any other person not requiring such information in the performance of his official duties. No information concerning the status of any security case will be disclosed to any person outside the Department of the Air Force or to any other person not requiring the information in the course of his official military or other governmental duties unless approved by the Executive Secretary.

RESIGNATIONS AND REIMBURSEMENT OF EMPLOYEES

Any

§ 889.21 Resignation policy. employee whose case is being processed under this part may resign at any time. However, if he resigns after he has been suspended, or after he has received an interrogatory or a letter of charges from the Central Security Board, or after he has been informed in some other way that proceedings under this part are pending against him, the SF 50 effecting the resignation will bear the notation, "Resigned while action pending to adjudicate security case under Public Law 733, 81st Congress." In all other cases, the SF 50 will contain only the routine data, and no mention will be made thereon of the pending security case. If the employee resigns, the entire case file will be forwarded without further action to the Central Security Board for appropriate disposition.

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§ 889.22 Reimbursement ployees. The commander of the Air Force activity concerned usually will be instructed to pay to any employee whose employment is suspended or terminated pursuant to Public Law 733, 81st Congress, and who is later reinstated or restored to duty, compensation for the period of the suspension or termination in an amount equal to the difference between the amount such employee would normally have earned during the period of such suspension or termination at the rate he was receiving on the date of his suspension or termination and his interim net earnings. However, no employee will be compensated for any extension of the period of suspension or termination caused by the employee's voluntary action and not the result of action by the Air Force in suspending or terminating his employment.

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Sec.

1000.606 Numbering of contracts.

1000.607 1000.608

Distribution.

Standard Form 1036, Statement and Certificate of Award. AUTHORITY: §§ 1000.1 to 1000.608 issued under R. S. 161, sec. 202, 61 Stat. 500, as amended; 5 U. S. C. 22, 171a. Interpret or apply sec. 3, 48 Stat. 505, as amended, sec. 14, 53 Stat. 560, 62 Stat. 21; 34 U. S. C. 496, 10 U. S. C. 311, 41 U. S. C. 151-161.

§ 1000.1 Report of profit under the Vinson-Trammell Act-(a) Requirement. Prime contractors and subcontractors performing Air Force contracts which are subject to the provisions of the Vinson-Trammell Act (sec. 3, 48 Stat. 505, as amended; 34 U. S. C. 496, 10 U. S. C. 311) are required to file a report of profit with the Secretary of the Air Force within 90 days after completion of the contract.

(b) Responsibility. The report covering an Air Force prime contract which is subject to the terms of the act must be filed by the prime contractor as a condition precedent to final payment under such contract. Finance officers are required to withhold final payment on a prime contract which is subject to the Vinson-Trammell Act, until advised that the report covering the contract has been filed. Processing of reports will be expedited so that payment to prime contractors will not be unduly delayed.

(c) Forms. The form prescribed for use is DD Form 147, Report of Profit on Army, Navy, or Air Force Contract. Forms may be obtained from the Commanding Officer, Wilkins Air Force Specialized Depot, Shelby, Ohio; or, Commanding Officer, Cheli Air Force Specialized Depot, Atlantic and Bandini Boulevards, Maywood, Los Angeles County, California.

(d) Use of report. The data contained in the reports will not be disclosed to any unauthorized person. A prime contractor with whom negotiations are being conducted will not be furnished data obtained from a report previously filed by a subcontractor. However, where such a report indicates an unreasonable profit on a previous subcontract, the buyer may question the reasonableness of the subcontractor's prices in negotiations between the prime contractor and the Government, provided that the specific data contained in such subcontractor's report will not be revealed to the prime contractor.

[17 F. R. 8861, Oct. 3, 1952]

SUBPART A-INTRODUCTION SOURCE: § 1000.101 to 1000.113 appear at 15 F. R. 8970, Dec. 16, 1950, except as otherwise noted.

§ 1000.101 Purpose. The Air Force Procurement Procedures are designed to implement Subchapter A, Chapter I of this title (Armed Services Procurement Regulations) and to prescribe detailed procurement procedures for the Department of the Air Force, as contemplated by § 1.106 of this title. Detailed procurement procedures are those policies and instructions prescribed by the Secretary, Under Secretary, or Assistant Secretary of the Air Force.

§ 1000.102 Applicability of procedures. These procedures apply to the procurement by the Department of the Air Force of all supplies and services which obligate appropriated funds, whether such supplies and services are procured by formal advertising or by negotiation. [18 F. R. 6260, Oct. 1, 1953]

§ 1000.103 Effective date of procurement procedures. These procurement procedures will be effective on and after November 15, 1950.

[18 F. R. 6260, Oct. 1, 1953]

§ 1000.104 Arrangement of procurement procedures-(a) General plan. These procedures are divided into parts and subparts which correspond to the parts and subparts of Subchapter A, Chapter I of this title (Armed Services Procurement Regulations). Where necessary, additional subparts which have no corresponding subpart in Subchapter A, Chapter I of this title, have been added to certain parts, e. g., Subpart E of this part.

§ 1000.108 Procuring activity instructions. Detailed operating instructions are the policies and instructions prescribed by the head of the procuring activity in accordance with § 1.107 of this title.

§ 1000.109 Deviation from Armed Services Procurement Regulation and the Air Force Procurement Procedures. (a) Deviations from the requirements of Subchapter A, Chapter I of this title (Armed Services Procurement Regulations) and/or the provisions of this subchapter (Air Force Procurement Procedures) will be made only by and with the approval of the Director of Procure

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