any such deviation does not conflict with a statutory requirement or ASPR. Each deviation shall be reported promptly on an after-the-fact basis to the addressee in § 591.150 (b) (7).

§ 591.109-50

Expiration of deviations. Except when this section is inconsistent with a specific provision in the approving document or unless the approval is sooner rescinded, the approval of a deviation which affects more than one contract or transaction shall expire 2 years from the date of approval without prejudice to any action thereunder. Authority to continue use of such deviation may be requested in accordance with §§ 591.109-591.109-51.

§ 591.109-51 Control of deviations.

One register listing all deviations approved within a procuring activity shall be maintained by the approving authority. Each deviation shall be recorded therein by title and shall be assigned a control number which shall include: fiscal year, identifying symbol (approved letter symbols), and an action serial number; e.g., 65-ENG-1. This control number shall also be embodied in the document authorizing the deviation in the following manner: "This deviation has been assigned control No. 65-ENG-1, which will be cited in all references to this deviation."

§ 591.113 Standards of conduct.

Each individual directly or indirectly concerned with any phase of procurement or related activities shall read AR 600-50, and, if appropriate, CPR C 2, shall sign a statement that it has been read and understood, and shall review it at least semiannually. The signed statement shall be retained in the files of the office to which the individual is assigned, and will be subject to inspection at all times.

§ 591.114 Reporting of identical bids (Reports Control Symbol JUST1007).

Department of Justice Form DJ-1500 is available through Adjutant General publications supply channels. One completed copy of each report submitted in accordance with § 1.114(d) of this title shall be sent to the addressee listed in § 591.150 (b) (2).

§ 591.115 Noncollusive bids and proposals.

The authority to make a determination as described in paragraph (d) of the certification in § 1.115 of this title is delegated to the cognizant Head of Procuring Activity with power of redelegation to a member of his headquarters staff.

§ 591.150

Procurement channels and mailing addresses.

(a) Throughout this subchapter are numerous requirements for the submittal of recommendations, reports, findings, data, information, and other documents. Unless otherwise specifically prescribed, such submittals to higher authority shall be through procurement channels. These procurement channels are indicated in paragraph (c) of this section. The addressee in paragraph (b) (12) of this section receives Army documents required to be distributed to and retained by the General Accounting Office.

(b) Addresses which are frequently referred to in APP are set forth below:

(1) Assistant Secretary of the Army (Installations and Logistics), Department of the Army, Washington, D.C., 20310.

(2) Assistant Secretary of the Army (Installations and Logistics) (Assistant Judge Advocate General), ATTN: JAGL, Department of the Army, Washington, D.C., 20310.

(3) Chairman, Armed Services Board of Contract Appeals, Office of the Assistant Secretary of Defense (Installations and Logistics), Washington, D.C., 20310.

(4) Chief Trial Attorney, Office of The Judge Advocate General, Department of the Army, Washington, D.C., 20310.

(5) Comptroller of the Army, ATTN: Director of Contract Financing, Department of the Army, Washington, D.C., 20310.

(6) Director of Procurement, OASA (I&L), Department of the Army, Washington, D.C., 20310.

(7) Chief, Procurement Policy Division, Directorate of Procurement, OASA (I&L), Department of the Army, Washington, D.C., 20310.

(8) Chief, Contracts Division, Directorate of Procurement, OASA (I&L), Department of the Army, Washington, D.C., 20310.

(9) Chief, Review and Analysis Office, Directorate of Procurement, OASA (I&L), Department of the Army, Washington, D.C., 20310.

(10) and (11) [Reserved]

§ 591.201-51 Ordering officer.

The term "ordering officer" means an individual (military or civilian) operating under the jurisdiction of the Department of the Army who has been appointed an ordering officer in accordance with the provisions of § 591.452 and who is thereby granted limited, specific authority to place orders under contracts entered into by others and to effect other minor procurement actions as described in § 591.452(c).

§ 591.201-52 Breakout procedure.

The term "breakout procedure" applies to the process whereby a component, subassembly or suitable element of a

weapon system or major item of equipment, initially obtained only from the system or major item prime contractor, is procured under a prime contract separate from that under which it was initially procured and which opens the procurement to competition. Objectives of the breakout procedure include reduction in concentration of procurement, increasing competition, and reduction of costs.

§ 591.201-54 Oversea area.

The term "oversea area" when applied to a procuring activity means a procuring activity in Alaska, the Caribbean, Europe, Hawaii, or Japan.

Subpart C-General Policies

§ 591.302-50

Integration of current procurement with mobilization planning.

(a) Defense Mobilization Order DMO VII-7, as amended, contains the following statement of policy with respect to current procurement in maintaining the mobilization base:

a. Procurement agencies shall integrate current procurement with their industrial mobilization plans to the greatest possible extent with the objective of supporting the mobilizaiton base within authorities and funds available.

b. Data assembled on essential mobilization suppliers by the industrial mobilization planning of these agencies shall be used in planning current procurement The policy of using contractors and facilities essential to the mobilization base is considered to be in the best interest of the Government. Supliers that are deemed to be part of the mobilization base normally will be invited to participate in appropriate current procurement.

(b) DOD Directive 3005.3 requires that a review be made of proposed procurement of items meeting the criteria of the Master Urgency Planning List and that responsibility for such review be maintained at the level of the Procurement Secretaries or their authorized designees. The Commanding General, U.S. Army Materiel Command, is designated to monitor the overall review assignment of items for review; each Head of Procuring Activity subordinate to Headquarters, U.S. Army Materiel Command, is appointed an authorized designee of the Assistant Secretary of the Army (Installations and Logistics) for the purpose of reviewing those items meeting the criteria of the Master Urgency Planning List for which his procuring activity has been assigned procurement responsibility, with authority to designate a senior officer of his headquarters staff responsible for procurement or a chief of purchasing office to perform the required review. Such review shall take into consideration the following factors:

(1) Maintaining multiple sources of supply;

(2) The geographic dispersal;

Department of Defense policies with respect to procurement by formal advertising and by negotiation are set forth in §§ 1.300, 2.102 and 3.102 of this title. All procuring activities and agencies shall give particular attention to the following factors in effecting procurement:

(a) The placement of contracts with a view to economies in the use of transportation facilities;

(b) The greatest possible integration of current procurement contracts with the industrial mobilization program and the accepted schedules of production;

(c) The utilization of manpower in areas of substantial labor surplus and distressed industries;

(d) The utilization of existing open industrial capacity to the maximum. Expansion of facilities should not be authorized when open capacity can be found. Whenever time permits, and in order to broaden the production base, additional contractors should be utilized in lieu of multishift or overtime operation;

(e) The equitable distribution of contracts among the maximum number of competent suppliers;

(f) The utilization in negotiation of competition whenever possible and of multiple awards;

(g) The aggressive encouragement or requirement of subcontracting by prime contractors;

(h) The provision of maximum incentive to the producer for the reduction of his costs;

(i) The fullest possible use of small business concerns; and

(j) The reservation of special skills and abilities for the more difficult production tasks.

§ 591.307 Priorities, allocations, and

allotments.

See AR 715-5.

§ 591.307-2 Required use of priorities, allocations, and allotments clause. Reference is made to Priorities and Allocations Manual 2-4.1 pertaining to requirements type contracts. A single rating (either C 3 or C 9) shall be assigned to requirements type contracts. § 591.308 Record of contract actions.

(a) Initiation and maintenance of contract files. The contract file shall be originated by the contracting officer initiating the procurement and maintained by him unless the contract is transferred to another contracting officer for administration, in which case responsibility for the contract file shall accompany the responsibility for administration. Where multiple contracts arise from a single solicitation, one contract file shall be designated the master contract file for the purpose of containing those pre-award files not necessary for the administration of the other contracts. The contract file for each of the other contracts shall be provided copies of documents from the master contract file necessary for administration of that contract and shall identify the master file and its location.

(b) Review of contract files. The contracting officer is responsible for making a continuing review of active contract files to insure that all required contractual actions have been taken and that the contract files contain all required documents. Transfer and disposal of contract files will be in accordance with applicable disposition standards and instructions in AR 345-210. § 591.310 Liquidated damages.

(a) Where a contractor has applied for remission of liquidated damages to the Comptroller General, appropriate action will be taken in accordance with the procedures prescribed in § 592.451 of this chapter and in addition

(1) In the event that all alternative remedial actions available to the contractor under the contract have not been exhausted (e.g., unresolved claims for extensions of delivery schedules), the administrative report and the contracting officer's statement required by

§ 592.451(a) of this chapter will identify the alternatives and state the actions being taken.

(2) In the event that all alternative remedial actions available to the contractor under the contract have been exhausted, the administrative report and the contracting officer's statement will include information as to the reasonableness of the rate of assessment of liquidated damages, in relation to the total contract price, and a summary of the actions taken to mitigate the assessment of the damages.

(b) Where a contractor has applied only to the Department of the Army for remission of liquidated damages and alternative administrative remedies within the Department which affect such damages (e.g., settlement of a dispute concerning excusable delay) have not been exhausted, action should be taken to the end that such remedies are exhausted before processing the case to the Comptroller General. If liquidated damages remain after exhaustion of such administrative remedies, the administrative report required by § 592.451 of this chapter, together with the information required by paragraph (a)(2) of this section, will be submitted.

(c) In each instance of a transmittal of a request for remission of liquidated damages to be processed to the Comptroller General, the cognizant Head of Procuring Activity shall include a proposed letter to the Comptroller General for signature of the Assistant Secretary of the Army (Installations and Logistics), containing a recommendation concerning the contractor's application. § 591.314 Contracting officer's decision under the Disputes Clause.

When the dispute involves an amount not in excess of $5,000, the contracting officer shall include a paragraph in his final decision substantially as follows:

If any dispute resulting from the decision hereinabove set forth involves an amount not in excess of $5,000, there is available an Optional Accelerated Procedure of the Board (Rule 12) for disposition of the appeal. In order to invoke such procedure an appellant must request that the appeal be processed

ments. The scope of such planning will vary with the complexity and dollar value of the item. Such planning shall be coordinated and will consider the following procurement aspects, where applicable: development, production, future requirements, engineering, programing, fiscal, legal, and contracting. This planning must be accomplished in order that procurement actions comply with the policy set forth in § 1.300-1 of this title.

a

(b) Each Head of Procuring Activity is responsible for the accomplishment of advance procurement planning. One of the primary purposes shall be to achieve competition in procurement whenever feasible. Another basic objective of such planning is to develop Requests for Proposals, Invitations for Bids, and contracts which are expressed in concise, intelligible, and consistent language. Drawings must be consistent with specifications; standards and specifications incorporated by reference must be kept to a minimum; and references to standard specifications having no significance must be eliminated. When "brand name or equal" specification is necessary, genuine effort will be made to name in the specification several brand names considered to be equal. Requirements personnel shall be directed to accommodate their efforts to the realities of procurement procedures and policies; e.g., they shall not include in special provisions or specifications subject matter or clauses which cover the same ground as prescribed general provisions or conflict therewith; they shall not, without meticulous justification, use restrictive specifications; they shall make every effort to insure that the requirements as described in the contract are complete and unambiguous. Required planning shall include analysis and thinking through all stages of the procurement up to and including contract completion. One important aspect of the "thinking through" process is a tentative determination of the type of contract (Subpart D, Part 3 of this title) which is considered to be most advantageous to the Government. Development contracts shall be examined by qualified technical personnel for feasibility of obtaining definitive specifications on components as to which design is stable and for which future procurement is contemplated. Incentive contracts shall be analyzed for all

possible "break-even" points, for ambiguities in terminology, requirements, or target descriptions, and for combinations of possibilities under any multiple incentives which could result in an undesirable end product or an exorbitant profit. Such planning shall provide for the following as appropriate:

(1) The establishment of time-phased objectives in the integrated procurement plan so that periodic review, including a review of each item in the Army Materiel Control Program to determine the adequacy and availability of the procurement data package, is accomplished and appropriate adjustments made;

(2) The review of proprietary items incorporated in the design to substitute wherever practicable standard items or items already in the supply system which will provide adequate performance characteristics consistent with other design requirements;

(3) The inclusion of the following provisions (subject to the provisions of Subpart B, Part 9 of this title) in development contracts or in production contracts that include requirements for production engineering of items for quantity production:

(i) The requirements for preparation of data suitable for competitive procurement in sufficient detail as to kinds, types, and forms; legibility; completeness; and conformance to items actually produced, so as to insure practicability of enforcement;

(ii) The requirements for use of standard components and other components in existence or for which nonproprietary documentation already

exists;

(iii) The requirements that the contractor avoid use of proprietary items or data except when essential for operational safety and reliability of equip ment;

(iv) The requirements for submission of newly designed items and proprietary items with appropriate justification for their use to specified locations for screening by the Government;

(v) The quality assurance provisions that require inspection of data for conformance to the data requirements specified, including, as appropriate, sampling plans, acceptable quality levels, and classification of defects;

(vi) The definition of place and time of acceptance of data, including require