18. Notice of hearings. The parties shall be given at least 15 days notice of the time and place set for hearings. In scheduling hearings, the Board will give due regard to the desires of the parties, and to the requirement for just and inexpensive determination of appeals without unnecessary delay. Notices of hearing shall be promptly acknowledged by the parties. A party failing to acknowledge a notice of hearing shall be deemed to have submitted his case upon the Board record as provided in Rule 11. 19. Unexcused absence of a party. The unexcused absence of a party at the time and place set for hearing will not be occasion for delay. In the event of such absence, the hearing will proceed and the case will be regarded as submitted by the absent party as provided in Rule 11. 20. Nature of hearings. Hearings shall be as informal as may be reasonable and appropriate under the circumstances. Appellant and respondent may offer at a hearing on the merits such relevant evidence as they deem appropriate and as would be admissible under the generally accepted rules of evidence applied in the courts of the United States in nonjury trials, subject, however, to the sound discretion of the presiding member or examiner in supervising the extent and manner of presentation of such evidence. In general, admissibility will hinge on relevancy and materiality. Letters or copies thereof, affidavits, or other evidence not ordinarily admissible under the generally accepted rules of evidence, may be admitted in the discretion of the presiding member or examiner. The weight to be attached to evidence presented in any particular form will be within the discretion of the Board, taking into consideration all the circumstances of the particular case. Stipulations of fact agreed upon by the parties may be regarded and used as evidence at the hearing. The parties may stipulate the testimony that would be given by a witness if the witness were present. The Board may in any case require evidence in addition to that offered by the parties. 21. Examination of witnesses. Witnesses before the Board will be examined orally under oath or affirmation, unless the facts are stipulated, or the Board member or examiner shall otherwise order. If the testimony of a witness is not given under oath the Board may, if it seems expedient, warn the witness that his statements may be subject to the provisions of Title 18, United States Code, sections 287 and 1001, and any other provisions of law imposing penalties for knowingly making false representations in connection with claims against the United States or in any matter within the jurisdiction of any department or agency thereof. 22. Copies of papers. When books, records, papers, or documents have been received in evidence, a true copy thereof or of such part thereof as may be material or revelant may be substituted therefor, during the hearing or at the conclusion thereof. 23. Post-Hearing briefs. Post-hearing briefs may be submitted upon such terms as may be agreed upon by the parties and the presiding member or examiner at the conclusion of the hearing. Ordinarily they will be simultaneous briefs, exchanged within 20 days after receipt of transcript. 24. Transcript of proceedings. Testimony and argument at hearings shall be reported verbatim, unless the Board otherwise orders. Transcripts of the proceedings shall be supplied to the parties at such rates as may be fixed by contract between the Board and the reporter. If the proceedings are reported by an employee of the Government, the appellant may receive transcripts upon payment to the Government at the same rates as those set by contract between the Board and the independent reporter. 25. Withdrawal of exhibits. After a decision has become final the Board may, upon request and after notice to the other party, in its discretion permit the withdrawal of original exhibits, or any part thereof, by the party entitled thereto. The substitution of true copies of exhibits or any part thereof may be required by the Board in its discretion as a condition of granting permission for such withdrawal. Representation 26. The appellant. An individual appellant may appear before the Board in person, a corporation by an officer thereof, a partnership or joint venture by a member thereof, or any of these by an attorney at law duly licensed in any state, Commonwealth, Territory, or in the District of Columbia. 27. The respondent. Government counsel designated by the various departments to represent the departments, agencies, directorates, and bureaus cognizant of the disputes brought before the Board, may in accordance with their authority represent the interests of the Government before the Board. They shall file notices of appearance with the Board, and notice thereof will be given appellant or his attorney in the form specified by the Board from time to time. Whenever at any time it appears that appellant and Government counsel are in agreement as to disposition of the controversy, the Board may suspend further processing of the appeal in order to permit reconsideration by the contracting officer: Provided, however, That if the Board is advised thereafter by either party that the controversy has not been disposed of by agreement, the case shall be restored to the Board's calendar without loss of position. Decisions 28. Decisions of the Board will be made in writing and authenticated copies thereof will be forwarded simultaneously to both parties. The rules of the Board and all Anal orders and decisions (except those required for good cause to be held confidential and not cited as precedents) shall be open for public inspection at the offices of the Board in Washington, D.C. In accordance with paragraph 3 of the Charter, decisions of the Board will be made upon the record, as described in Rule 13. Motions for Reconsideration 29. A motion for reconsideration, if filed by either party, shall set forth specifically the ground or grounds relied upon to sustain the motion, and shall be filed within 30 days from the date of the receipt of a copy of the decision of the Board by the party filing the motion. Dismissal Without Prejudice 30. In certain cases, appeals docketed before the Board are required to be placed in a suspense status and the Board is unable to proceed with disposition thereof for reasons not within the control of the Board. In any such case where the suspension has continued, or it appears that it will continue, for an inordinate length of time, the Board may in its discretion dismiss such appeals from its docket without prejudice to their restoration when the cause of suspension has been removed. Effective Date and Applicability 31. These revised rules shall take effect on the first day of the month following the month in which they are approved by the Assistant Secretary of Defense (Installations and Logistics) and the Assistant Secretaries of the Military Departments responsible for procurement. Except as otherwise directed by the Board, these rules shall not apply to appeals which have been docketed prior to their effective date. Approved this 15th day of July 1963. The Assistant Secretary of the Army The Assistant Secretary of the Navy The Assistant Secretary of the Air Force (Materiel). [27 F.R. 6139, June 27, 1962 and 29 F.R. 2842, Feb. 29, 1964] 101. Scope of Manual. This Manual sets forth basic requirements to be observed by the Departments of the Army, Navy, and Air Force, for establishing and maintaining control over Government property furnished to or acquired by contractors pursuant to the terms of their contracts. 102. Applicability of Manual. This Manual applies to all types of contracts, leases and bailments pursuant to which Government property is furnished to or acquired by a contractor. 103. Definitions. As used in this Manual, the following terms have the meanings shown: 103.1 Contractor administrator. Contractor administrator means the individual duly designated by appropriate authority in the Military Departments to administer the contract. In the case of the Army, Air Force, and the Defense Supply Agency, usually this is a contracting officer; and in the Navy, usually this is the authorized representative of the contracting officer having administrative cognizance over the contract. 103.2 "Property administrator" means the Government representative responsible to the contract administrator for: (1) Reviewing and approving the contractor's property control procedures; (11) Examining the records maintained by the contractor of Government property; (iii) Making usage analysis of Government property; and (iv) The maintenance of such Government property records as are required by this Manual. 103.3 "Government property" means all property owned by or leased to the Government, or acquired by the Government under the terms of a contract; except that property to which the Government has acquired a lien or title solely as a result of partial, advance or progress payments shall not for the purpose of this Manual be classified as Government property. With this exception, Government property includes both Government-furnished property and contractacquired property, as defined below: (1) Government-furnished "property" is property in the possession of or acquired directly by the Government and subsequently delivered or otherwise made available to the contractor; and (11) "Contractor-acquired property" is property procured or otherwise provided by the contractor for the performance of a contract, pursuant to the terms of which title is vested in the Government. The term "provide," as used in the context of such phrases as "Government property provided to the contractor" and "Government-provided property," is intended to in clude both Government-furnished property and contractor-acquired property. 103.4 "Industrial facility" means property, other than material and special tooling, of use for the performance of a contract or subcontract, including real property and rights therein, buildings, structures, improvements, and plant equipment. 103.5 "Industrial property," as distinguished from military property, means any contractor-acquired or Government-furnished property, including materials, special tooling, and industrial facilities furnished or acquired in the performance of a contract or subcontract. 103.6 "Real property," for purposes of accounting classification means (1) land and rights therein, (11) utility distribution systems, and (111) buildings, structures, and improvements thereto, excluding plant equipment. 103.7 "Utility distribution system" means a system (including distribution and transmission lines, substations, and installed equipment forming an integral part of the system), by which gas, water, steam, electricity, sewerage, or other utility services are transmitted between (1) the outside of the building or structure in which the services are used, and (11) the point of origin or disposal, or the connection with some other system. For the purpose of this Manual it does not include communication services. 103.8 "Plant equipment" means personal property of a capital nature (consisting of machinery, equipment, furniture, vehicles, machine tools, and accessory and auxiliary items, but excluding special tooling used or capable of use in the manufacture of supplies or in the performance of services or for any administrative or general plant purpose. 103.9 "Minor plant equipment" means an item of plant equipment having a unit value of less than $200 and other plant equipment, regardless of cost, when so designated by the Government. 103.10 "Production equipment" means those items of plant equipment located within a manufacturing, processing, assembly or service establishment and used for I cutting, abrading, grinding, shaping, forming, joining, measuring, testing, heating or treating production materials or work in process. 103.11 "Machine tools" mean those items of production equipment which are powerdriven, non-portable machines used for cutting. abrading, grinding, shaping or forming metal. 103.12 "Accessory item" means an item which facilitates or enhances the operation of plant equipment but which is not essential for its operation, such as remote control devices. 103.13 "Auxiliary item" means an item without which the basic unit of plant equipment cannot operate, such as motors for pumps and machine tools. 103.14 Special tooling means all jigs, dies, fixtures, molds, patterns, special taps, spe cial gauges, special test equipment, other special equipment and manufacturing aids, and replacements thereof, acquired or manufactured by the contractor for use in the performance of a contract, which are of such a specialized nature that, without substantial modification or alteration, their use is limited to the production of such supplies or parts thereof, or the performance of such services, as are peculiar to the needs of the Government. The term does not include: (1) Items of tooling or equipment acquired by the contractor prior to the contract, or replacements thereof, whether or not altered or adapted for use in the performance of the contract, (11) consumable small tools, or (iii) general or special machine tools, or similar capital items. 103.15 "Material" means property which may be incorporated into or attached to an end item to be delivered under a contract or which may be consumed or expended in the performance of a contract. It includes, but is not limited to, raw and processed material, parts, components, assemblies, and small tools and supplies which may be consumed in normal use in the performance of the contract. 103.16 "Salvage" means property recoverable for further use or which, because of its worn, damaged, deteriorated, or incomplete condition, or specialized nature, has no reasonable prospect of sale or use as serviceable property without major repairs or alterations but which has some value in excess of its scrap value. 103.17 "Scrap" means property that has no reasonable prospect of being sold except for the recovery value of its basic material content. 103.18 "Property account" means the offcial records of the Government property provided to a contractor by a Department, which are established and maintained under the provisions of this Manual. Separate property accounts will be maintained either on an individual contract basis or contractor basis. 103.19 "Stock record" means a perpetual inventory form of record which shows, by nomenclature, the quantities received and issued, and the balances on hand. PART II-GENERAL PROVISIONS 200. Scope of part. This part sets forth (1) the duties and responsibilities of Government representatives and contractors charged with the control of Government Property, (11) the sources from which Government Property may be received or acquired, and (111) the manner in which Government Property will be controlled, both physically and administratively. 201. Duties and responsibilities of the Contract Administrator with respect to the control of Government Property. (a) The function of the Contract Administrator with respect to the control of Government Property is to insure that the Contractor complies with the provisions of the contract and this manual pertaining to Government Property and that the Government's interests therein are fully protected at all times. He shall require the Contractor to (1) exercise reasonable care and proper usage of all Government Property, (11) establish and maintain adequate records therefor and (111) maintain controls that will assure the recording of all debits and credits to the property record as hereinafter defined. (b) It is incumbent upon the Contract Administrator to familiarize himself with the provisions of this manual and the contract involved. (c) He shall require the Contractor to correct all deficiencies in complying with the provisions of the contract and this manual pertaining to Government Property. (d) He shall take proper action with respect to recommendations of the Property Administrator relating to usage or control of Government Property. (e) He shall make appropriate written Andings with respect to the Contractor's liability for Government Property lost, damaged, destroyed, or unreasonably consumed in production, as may be required by this manual. 202. Designation of property administrator. (a) A property administrator shall be designated for each Government contract involving Government property. In appropriate cases the contract administrator may be assigned the additional duty of property administrator. An assistant property administrator may be appointed for specific contracts. The property administrator will not be required to post a bond by virtue of the duty as property administrator. (b) It is the policy of the Department of Defense that a single property administrator shall be designated for all Department of Defense contracts performed at one location by a contractor. Within each Military Department, responsibility for the direction, administration, and review of the property administration interchange program shall be assigned to a single office at the Department level. This office, designated to direct and administer the program, shall have the following responsibilities: (1) Implementation of pertinent Department of Defense directives, instructions, and regulations. (2) Review of field contract administration activities for compliance with Department of Defense and Departmental directives pertinent to the property administration interchange program. (3) Resolution of intra-departmental interchange problems. (4) Resolution of inter-departmental interchange problems. (c) Property administration interchange agreements shall be negotiated only by those offices administering current contracts or orders with the contractors. Property administration interchange agreements shall be effected at the field level between representa tives of the procuring activities having contract administration responsibility. In for-p mulating such agreements, the following fac tors, among others, shall be considered: (1) Comparative value and types of Government property in the possession of the contractor and the Government property yet to be provided under Government contracts. (2) Existence of a resident property administrator or accessibility of an itinerant property administrator. (3) Other contract administration func tions which may have a bearing on property administration such as quality control, industrial mobilization planning and audit cognizance. (d) Based on the above factors, when two or more offices are equally concerned with property administration at a contractor's location, that office which has contracts or orders that indicate the greatest continuous duration of future interest in Government property shall be given primary consideration for property administration cognizance. When all contracts or orders of the Department designated to perform property administration have been completed at a contractor's location, that Department shal cease to have cognizance at that location unless all military contracts providing for Government property are scheduled to expire within a succeeding three-month period. When all contracts or orders of the Department designated to perform property administration have been completed at a contractor's location where other Departments continue to perform contracts or orders which are not scheduled to expire within a succeeding three-month period, property administration cognizance shall be determined by negotiation between those Departments which continue to perform contracts or orders providing for Government property with the suppliers. When a Department that previously had no contracts at a contractor's location at the time the existing property administration interchange agreement was made acquires a contract providing for Government property of greater continuous duration of future interest than those involved in the existing agreement, the cognizance agreement shall be reviewed and either confirmed or revised by a new agreement. 858 33 1: YENG (e) When the Departments are unable to. reach property administration interchange, agreements, those unresolved property administration assignments chall be referrec to the Assistant Secretary of Defense (Supply and Logistics) for resolution. (f) Property administration functions required by this subchapter will be performed by the designated property administrator who will generally follow his current operating procedures in performing property administration. Each Department will provide the designated property administrator with manuals, instructions, and directives pertaining to reports and documentation required by contractual provisions. Documents and records required by this section E for property administration of current conI tracts, subcontracts, and purchase orders involving Government property will be provided I to the designated property administrator prior to the effective date of an agreement. : Coples of such contracts, subcontracts, and : purchase orders and amendments thereto or extracts of property provisions thereof will = accompany the transmittal. The name of the individual designated as property administrator for such contracts will be furnished to the procuring activity performing = contract administration. New contracts, subcontracts, purchase orders and amendments thereto or extracts of property provisions thereof where Government property is involved will be transmitted to the desigInated property administrator. Contracts containing the special tooling clause (§ 13.704 of this chapter) will likewise be transImitted to the designated property administrator for necessary surveillance. (g) The designated property administrator = may correspond directly with the contractor and appropriate Department of Defense personnel on matters pertaining to Government property. The contract administrator will keep the property administrator informed as to all communications, correspondence, and actions affecting property matters under the assigned contract. I (h) Property administration interchange agreements shall be in the general format shown below. Where required, appendices shall be added thereto. 1. Purpose: This is a local interchange agreement providing for property administration at the designated contractor's location by (Department-procurement office) in accordance with ASPR B-202. 2. Effective date: This agreement becomes effective on 3. Contractor's location: (Identify specific location covered by this agreement) (Signatures of authorized representatives of Departments concerned) 203. Duties and responsibilities of Property Administrators. (a) The property administrator shall familiarize himself with the provisions of this Manual and the contract provisions pertaining to Government property. (b) He shall, as the authorized representative of the contract administrator or administrators, insure compliance with the contract requirements relative to Government property and insure fulfillment of all obligations imposed by this Manual. Except as may be provided pursuant to B-304.1(e), be shall at the inception of each contract review and approve in writing the contractor's property control system, except that where the contractor has a number of contracts, the property administrator may per form such review and give such approval not less often than six months. (c) He shall be responsible for property management data required by contractual provisions and, when acting as property administrator under a property administration interchange agreement, shall also provide the procuring activities concerned with such management data and with information, documents, records, and assistance required by the latter for conformance with the provisions of this Appendix B and/or Departmental procedures, including, but not limited to, those for the following purposes: (1) Public vouchers. (2) Fulfilling managerial and financial requirements for property report cards. (3) Marking and identification of property under Departmental procedures. (4) Disposition of excess. (5) Approval of the contractor's property control procedures and records. (6) Relief from responsibility for property loss, damage, unauthorized use, or unreasonable consumption. (7) Final property clearance. (d) He shall examine the documents, including but not limited to consumption or usage reports, adjustment reports, reports of spoilage or shrinkage, sales, shipments, transfers, etc., recorded by the contractor in the property account, to the extent necessary to establish the correctness and completeness of such records. (e) It shall be his responsibility to determine whether the contractor is using Government property for the purposes authorized by the contract, and whether the contractor is exercising the degree of care in the handling of Government property prescribed in the contract. (f) He shall make usage analyses to determine the reasonableness of the consumption and expenditure of Government property. Control records shall be utilized in the performance of the usage survey and, to the extent necessary, selective physical inspections of Government property shall be made in the appropriate states of production. (g) He shall periodically examine all property records to determine whether such records reflect the status of Government property and indicate compliance with the provisions of the contract and applicable directives. He shall report promptly in writing to the contract administrator any noncompliance by the contractor with the contract provisions and applicable directives. (h) He shall advise the contract administrator on all property matters. 204. Duties and responsibilities of the Contractor. The Contractor shall be directly responsibile for and accountable for all Government Property in accordance with the provisions of the contract. The Contractor shall maintain and make available such records as are required by Part III of this manual and must account for all Government Property until relieved of responsibility therefor in accordance with the pro |