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Engineer Department
Orders & Rego, Chit pt.

I

WAR DEPARTMENT
OFFICE OF THE CHIEF OF ENGINEERS

Washington, 1 November 1946

PREFACE

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1. The purpose of Part I, Military Works, 1 November 1946, of Chapter VII, Procurement, Contracts, and Claims, Orders and Regulations, is to prescribe the authorities and to present, as completely as practicable, the fundamental legislative and administrative requirements and the procedures to be followed in making purchases, letting contracts, settling claims, and litigation in connection with military procurement, including construction. All applicable War Department regulations are incorporated or referred to and will be maintained current by the issuance of changes as required. Decisions of the courts and the Comptroller General pertinent to the subject matter are cited or quoted. Current orders and directives of other departments and agencies, which affect the subject matter, will be published by changes where necessary.

2. It will be noted that section 15 is followed by section 20, sections 16 to 19, inclusive, have been reserved to cover additional sections that may be added from time to time to War Department Procurement Regulations. At present War Department Procurement Regulations run from section 1 through section 15. For example, if a new section 16 were added to War Department Procurement Regulations and implementation of such section was considered necessary in Orders and Regulations, a corresponding section 16 would be added to part I, chapter VII. It should be further noted that several paragraph numbers have been reserved in the various sections of part I. These paragraph numbers have been reserved primarily because it is intended to insert additional material at a future date.

3. Effective upon receipt, these regulations supersede chapter VII, Orders and Regulations, 15 August 1944, as amended. Chapter VI, Travel and Transportation, Orders and Regulations, 14 June 1938, so far as the subject matter thereof is contained in section 22 of this part of chapter VII, is rescinded, as well as any previous instructions issued by the Chief of Engineers modifying or revising existing regulations pertaining to military works on procurement, contracts, and claims. The following circular letters, or parts thereof, and other directives are also rescinded by reason of the material contained therein having been incorporated in part I, chapter VII.

Circular Letter No. 2804 (Fiscal No. 265), 28 February 1944, subject, "Government Transportation Requests and Bills of Lading."

Paragraphs 12, 13, 15, through 20, Circular Letter No. 2947, (Fiscal No. 272), 14 April 1944, subject, “Changes in Orders and Regulations.'

Circular Letter No. 3196 (Redistribution and Salvage No. 15) 27 July 1944, subject, “Disposal of Contract Termination Property."

Circular Letter No. 3847 (Supply No. 435), 5 July 1945, subject, "Disposal of Surplus Part I Property."

Circular Letter No. 3935 (Contract Termination No. 14), 7 September 1945, subject, “Contract Termination Reports.”

Circular Letter No. 3955 (Contract Termination No. 15), 24 September 1945, subject, “Contract Termination Reports."

Circular Letter No. 4013 (Legal No. 2), 13 November 1945, subject, “Termination of Labor Agreement:"

Circular Letter No. 4107 (Contract Termination No. 17), 12 April 1946, subject, “Contract Termination Procedures on Contracts Administered by OCE and by Districts and Depots Assigned Procurement Responsibility by OCE.”

Circular Letter No. 4143 (Legal No. 5), 31 May 1946, subject "Settlement of Litigated and Unlitigated Claims Under the Fair Labor Standards Act.”

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Circular Letter No. 4144 (Contract Termination No. 18), 31 May 1946, subject, “Contract Termination Procedures on Fixed-Price and CPFF Military Construction Contracts."

Circular Letter No. 4194 (Legal No. 7), 8 August 1946, subject, “Modification of Disputes Article in all Contracts for Military Construction.”

Circular Letter No. 4225 (Legal No. 11), 23 September 1946, subject, “Discontinuance of Land Grant Rates."

Multiple letter, SPEAC 161, dated 8 March 1946, subject, “Change in Limitation of Authority to Approve Change Orders and Supplemental Agreements, and Changes in Contract Articles, Relating to Civil Works."

Multiple letter, ENGAC 15Q, dated 24 September 1946, subject, “Investigation and Settlement of Non-Contractual Claims."

4. Unless otherwise stated any amendments to these regulations will not be mandatory until
30 days after the date of issuance thereof. When any regulation herein is found to be incon-
sistent with any regulation or directive of higher authority issued subsequently, the regulation or
directive of higher authority will govern.
BY ORDER OF THE CHIEF OF ENGINEERS:

CHAS. G. HOLLE
Colonel, Corps of Engineers
Executive Officer.

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CHANGE 14, 10 Aug 50 To Part I, Chapter VII

Section 2. General Procurement Policies and Procedures: (Continued)

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7103.01

7103.02

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7103.03
7103.04
7103.05
7103.06
7103.07

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7103.08
7103.09

7103.10

7103.11

Basic Regulations
Government Plant and hired Labor, Policy on

Use of ..
Project Estimates Supporting Information,

Construction Contracts
Standard Forms to be Used
Contract Forms
Forms of Invitation for Bids and Bid Forms
Designation of contracting Officers
Award of Contracts, Change Orders, and

Supplemental agreements.
Contracts Requiring Approval of higher authority
Contracts Requiring Approval of the Chief

of Engineers.
Contracts Requiring Approval of the Division

Engineers ...
Contracts Requiring Approval of Department of

the army Power Procurement Officer .
Execution and approval of Contracts by District

Engineers
Fixed-Fee Construction Contract Negotiations
Adjustment of Fixed-Fee for Subcontracting

Under Frime Fixed-Fee Contract Forms ..
Approval of salaries and Wages Under Cost-Plus-a-

Fixed-Fee Contracts
Administration of Fixed-Fee Contracts, General
Numbering of Contracts.
Numbering of Change Orders and Supplemental

Agreements .
Military Supply Contract Identification Symbol
Order Symbol Numbers
Requisition and Order Number To Be Shown on

Contract Documents ..
Change Orders and Supplemental Agreements

Distinguished.

7103.12

7103.13
7103.14

7103.15

7103.16
7103.17
7103.18

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7103.19 7103.20 7103.20-A

7103.21

7103.22

iv

CHANGE 14, 10 Aug 50
To Part I, Chapter VII

Section 3.

Contracts

Paragraph

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Change Orders to Lump Sum Contracts

7103,23 Reserved

7103.24 Findings of Fact in Support of Change Orders and Supplemental Agreements

7103.25 Changed Conditions

7103.26 Transmittal of Contracts for Approval, etc

7103.27 Records of Contracts and Purchases

7103.28 Preparation and Distribution of Numbered Contracts, Lotter Orders, and Modifications .

7103.29 Preparation and Distribution of Unnumbered Contracts and Modifications Thero of ...

7103.30 Additional Distribution of Lumber Contracts .

7103.31 Preparation and Distribution of Subcontracts, etc,

and Modifications There of Under Fixed-fee
Construction or Fixed-Fer Supply Contracts

7103.32 Appeals

• 7103.33 Procedure to Eliminate Excessive Number of claims and Appeals

7103.34 Advance Payments .

7103.35 Final Payment

7103.36 Releases

7103.37 Acceptance of work Under Construction and ArchitectEngineer Contracts

7103.38 Percentage of Profit To Be Inserted in Supply

Contract Termination Article (BR 324 (717 and JTR 931 . 7103.39
Use of Contract Articles Authorizing Cancellation of
Future Deliveries :

7103.40
Cutbacks and Cancellations by Change Order or
Supplemental Agreement

7103.41 Contract Provisions to be Eliminated From Contracts To Be Performed in Foreign countries

7103.42 Liquidated Damages ..

7103.43 Termination for Default

7103.44 Delegation of Authority re Equitable Adjustments under Changes Articles

7103.45 Excusable Delays ...

7103.46 Assignment of Contracts and Monios Due under Contracts

7103.47 Assignments Under Subcontracts

7103.48 Expert Services and Personal Services

7103.49 Nonpersonal Services.

7103.50 Army-Navy Lumber Agency

7103.51 Contracts for Public Utilities Sortides

7103.52
Acceptance of Materiel Deviating from Specifications 7103.58
Policy on Relief Under the First War Povers Act and
Executive Order No. 9001 .

7103.54 Report to Accompany Supplemental Agreements Under

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