The Secretary establishes policies for, and directs and supervises, the Department's activities with respect to procurement and related matters. The General Counsel, as his legal advisor, is the final authority on all legal questions relating thereto. By delegation of authority from the Secretary, policies established by him are implemented and other appropriate instructions are issued to lower echelons by the Deputy Chief of Staff, Systems and Logistics, USAF, and the Director of Procurement Policy.

[28 F.R. 9151, Aug. 20, 1963, as amended at 29 F.R. 9765, July 21, 1964]

§ 1001.453 Delegations of authority.

Certain specific delegation of authority instructions with respect to procurement are referenced in subsequent paragraphs of this subpart. In addition to limitations and conditions applicable to individual delegations and included therewith, the provisions of the paragraphs set forth in this section apply to all delegations of procurement authority and are published in this section to eliminate their repetition.

(a) The exercise of the delegated authorities will be subject to the applicable provisions of Chapter I of this title, this subchapter, and other directives issued by proper authority, except that emergency procurements in combat areas or areas subject to hostile fire will be accomplished in the manner prescribed by the commander of the combat theatre or by the commander of the major air command responsible for logistic support of AF units involved. The provisions of Chapter I of this title and this subchapter apply to procurement in oversea areas for Government and Relief in Occupied Areas (GARIOA) chargeable to annual appropriations for such purposes.

(b) All redelegations of authority as well as withdrawals or rescissions thereof will be made in writing over the personal signature and title of the person vested with the authority. Delegations and redelegations will be made to official positions and not to individuals by name, except in the case of designations of

66-075 0673

contracting officers and representatives of contracting officers.

(c) Delegations of authority do not affect the authority of the delegator to exercise any of the authority delegated or to issue instructions concerning the exercise of such authority.

(d) Authorities delegated by the Deputy Chief of Staff, Procurement and Production, Hq AFSC, and the Director of Procurement and Production, Hq AFLC, may not be redelegated except as expressly provided in individual authorizations.

(e) Delegations of authority to air attachés may be exercised only by air attachés on duty in foreign countries. Delegations of authority to chiefs of AF foreign missions or chiefs of AF sections of joint military missions may be exercised only when the missions are not operating under the jurisdiction of an oversea command.

(f) Procurement authorities vested in commanders, oversea commands are likewise vested in the Commander, Military Airlift Command, and the Commanderin-Chief, Strategic Air Command, with respect to areas outside the continental United States and not within the jurisdiction of a major command.

(g) [Reserved]

(h) In the absence of a person occupying a position to which authority has been delegated, the authority may be exercised by the person who is occupying the position in an "acting" capacity. "Absence" refers to absence from the installation on leave or temporary duty travel. In cases of extreme emergency "absence" may be construed to mean absence from the office regardless of whereabouts, except redelegations of authority which must be accomplished by the person occupying the position to which authority has been delegated.

(i) Approval of awards and manual approval of contracts authorized by delegations of authority will be made in person by the individual occupying the position to which the authority has been delegated. Execution of such approval by one individual for, or over the signature of, another is unauthorized. Persons serving in an acting capacity will execute authority, as delegated, over their own name as acting chief, deputy chief, etc. Awards and contractual instruments in excess of the contracting officer's authority which require approval by higher authority will be re

viewed by competent persons prior to manual approval.

(j) Ratification authority: In the event that a person acts without the requisite authority, his action may, under certain circumstances, be later ratified.

(1) For purchases involving $2,500 or less, made by persons to whom requisite authority has not been delegated, the individuals designated below are authorized to ratify such a transaction in the case of persons under the jurisdiction of: (i) The major commands (other than AFLC and AFSC) by the commander of the respective major command with power of redelegation to the DCS/materiel or comparable office within the major command headquarters, and (ii) AFLC and AFSC by the commanders of the first echelon of command immediately subordinate to HQ AFLC and AFSC. In no event will such authority be redelegated to contracting officers at any level. Each such transaction will be submitted for review and possible ratification according to the following procedures:

(a) A statement of all pertinent facts of the transaction, accompanied by a file of all relevant documents and records, will be forwarded (over the signature of the base commander or officer who has command over the installation in which the unauthorized act occurred) to the DCS/materiel or equivalent staff office of the respective major air command or to the AFLC or AFSC activity delegated the ratification authority. Cases involving tenant organizations will be forwarded to the major air command to which the tenant is assigned. The statement will include description of any disciplinary action taken or an explanation why none was considered necessary and a description of action taken to prevent recurrence of the unauthorized act. In the case of tenant organizations or nontenant individual not under the jurisdiction of the installation commander, a statement pertaining to disciplinary action will be furnished by the appropriate commander. The individual having committed the unauthorized act will be responsible for furnishing to the contracting officer all the pertinent facts, records, and documentation concerning the transaction. The contracting officer will be responsible for: (1) Reviewing and determining adequacy of all facts, records, and documentation furnished; (2) preparing the statement of facts; and

(3) obtaining approval as to legal sufficiency from the local staff judge advocate as to whether the transaction is ratifiable or whether the matter should be processed under Part 17 of this title (Public Law 85-804) or as a GAO claim; (4) stating whether the price (s) involved are considered fair and reasonable.

(b) The procurement staff officer within the DCS/materiel or equivalent staff office of the respective major air command or the procurement staff office designated by the individual responsible for ratification at the AFLC or AFSC activity, will review the file, obtain any additional evidence required including approval as to legal sufficiency by the staff judge advocate, and prepare a recommendation as to whether the transaction should be ratified stating reasons therefor. Advice against ratification will include a recommendation as to whether the matter should be processed under Part 17 of this title (Public Law 85804) or as a GAO claim. The complete file will be forwarded to the individual responsible for ratification as indicated in this subparagraph.

(c) When the complete file is received by the individual responsible for ratification, he may ratify if he deems it in the best interest of the Government. However, no transaction will be ratified that would not otherwise have been valid if made by a properly authorized contracting officer.

(d) The individuals responsible for ratification in the major air commands (other than AFSC), and AFLC activities will advise AFLC (MCPP), and the commanders of AFSC activities will advise AFSC (SCKP), of each transaction submitted for review under this subparagraph (1), indicating whether or not the transaction was ratified. This written notification should identify the base involved, the commodity or service procured, and the dollar amount of the transaction.

(2) Purchases involving more than $2,500 made by persons to whom requisite authority has not been delegated may be ratified only by the Director of Procurement and Production, Hq AFLC, or the Deputy Chief of Staff, Procurement and Production, Hq AFSC. Commanders will cause to be prepared the material and information required by subparagraph (1) of this paragraph and forwarded to AFLC (MCPKA), and/or

AFSC (SCKP), as appropriate. All such transactions must be reviewed by the Staff Judge Advocate, Hq AFLC or Hq AFSC, as appropriate.

(3) Transactions which have been ratified will be forwarded to the appropriate contracting office for issuance of a purchase order or contract for payment purposes, citing 10 U.S.C. 2304 (a) (3) if $2,500 or less, 10 U.S.C. 2304(a) (10) if more than $2,500, or other negotiation authority, if appropriate.

(4) Contracting officers do not have the authority to ratify unauthorized acts (subparagraph (1) of this paragraph).

(k) Authority to make awards and execute or approve contracts applies only when such documents include all prescribed clauses approved for use by the Deputy Chief of Staff, Procurement and Production, Hq AFSC, or the Director of Procurement and Production, Hq AFLC, or higher authority.

(1) When contracting authority is limited as to dollar amount, the limitation includes:

(1) Any contractual instrument initially involving a sum in excess of the dollar limitation considering the aggregate of obligated and committed funds and any potential "connecting charges" or "termination liability" established therein.

(2) Contracts firmly negotiated for the total cost of the program, as stated therein, but which are funded for less than the total cost of the program as firmly negotiated.

(3) Requirements and indefinite quantity contracts as defined in § 3.409 of this title and § 1003.409 of this subchapter and call procurement arrangements as defined in § 1003.409-50 of this subchapter when maximum requirements are set forth (in such cases the maximum requirements will be contained in the call procurement arrangements as the estimated dollar amount of supplies or services to be procured during the contract period), even though no funds are committed or obligated thereby. Such contracts are required to include on their face as an administrative recital a bona fide estimate of such aggregate amount.

(4) Any contractual instrument in excess of the dollar limitation that increases the allotment of funds for reimbursement under a cost-reimbursement or time-and-materials type of contract.

(5) Any contractual instrument, regardless of total contract consideration, which accomplishes a change that would increase the cost to the Government by more than the dollar limitation were there not offsetting credits provided in the same contractual instrument.

(6) Except as otherwise authorized, any supplemental agreement defining contract change notifications when the contract change notifications being definitized accomplishes a change which increased the cost to the Government by more than the dollar limitation regardless of whether there are offsetting credits provided in the same supplemental agreement.

(7) Utility contracts-the estimated annual service charge plus the connection or termination charge, if any.

(m) When contracting authority is limited as to dollar amount, the limitation does not include:

(1) Contractual instruments which do no more than commit funds for engineering changes or provisioning items, whether or not there was any previous commitment for such items.

(2) Contractual instruments increasing fund obligations under partially funded contracts (see paragraph (1) (1) and (2) of this section) when not exceeding the firmly negotiated total cost of the program as stated in the prime contract.

(3) Contractual instruments obligating funds covering calls issued under terms of requirements contracts (§ 3.409– 2 of this title), indefinite quantity contracts (§3.409-3 of this title), or call procurement arrangements (§ 1003.40950 of this subchapter), except as provided in § 1001.405-1(a).

(4) Contract change notifications issued according to Subpart C, Part 1054 of this subchapter.

(5) Contractual instruments which obligate funds for provisioning items where the approved contract contained an item for provisioning spares, ground handling and support equipment, etc.

(6) Communication Service Authorizations (CSA).

(7) Blanket Purchase Agreements as set forth in § 3.605 of this title and § 1003.605-3 of this subchapter.

(n) Authorities vested in chiefs of AF foreign missions are likewise vested in AF sections of joint military missions.

(0) Requirements aggregating more than the dollar amount of the contracting authority delegated will not be broken down into more than one purchase transaction for the purpose of avoiding authority limitations.

(p) Authorities vested in Deputy Directors of Procurement and Production are likewise vested in Technical Associates performing procurement and production functions at comparable level.

[27 F.R. 1610, Feb. 21, 1962, as amended at 27 F.R. 11760, Nov. 29, 1962; 28 F.R. 3385, Apr. 6, 1963; 28 F.R. 9690, Sept. 5, 1963; 29 F.R. 1681, Feb. 4, 1964; 29 F.R. 5789, May 1, 1964; 29 F.R. 11591, Aug. 13, 1964; 30 F.R. 16002, Dec. 23, 1965; 31 F.R. 13214, Oct. 13, 1966; 31 F.R. 14974, Nov. 29, 1966] § 1001.455 thority.

General procurement

au

The delegation referenced in this section is a general one, and all other existing or future delegations, regulations, or directives issued by competent authority, to the extent to which they would, expressly or by reasonable implication, limit the scope of or impose conditions or restrictions upon the exercise of the general authorities cited in delegation instruments, will be controlling over it. This includes authority to enter into, execute and approve contracts.

(a) No implementation.

(b) AFLC authority. This authority has been redelegated by Commander of AFLC to the Director, Deputy Director, and Assistant to the Director of Procurement and Production, HQ AFLC, and to all commanders of major commands (only base procurement for AFSC), air materiel areas, procurement regions, 2750 Air Base Wing, 2802 Inertial Guidance and Calibration Group, USAF Air Attaches, and USAF Missions.

(c) AFSC authority. This authority has been redelegated by the Commander, HQ AFSC, to the Deputy Chief of Staff, Procurement and Production, and the Assistant Deputy Chief of Staff, Procurement and Production, HQ AFSC, and further redelegated to commanders and vice commanders of AFSC divisions, centers, and the Office of Aerospace Research with power of redelegation. [31 F.R. 13215, Oct. 13, 1966]

§ 1001.456 Designation of heads of procuring activities.

Commanders of AFLC and AFSC are each designated as "a head of a procuring activity" within the Department of

the Air Force. The Director of Procurement and Production, HQ AFLC, and the DCS/Procurement and Production, Hq AFSC, have been authorized to act for their respective commanders in exercising Chapter I of this title prescribed responsibilities vested only in the "head of a procuring activity." This authority is not applicable to Part 17, Subchapter A of this title, Extraordinary Contractual Actions to Facilitate the National Defense.

[31 F.R. 13215, Oct. 13, 1966]

DO

§ 1001.460 Priorities authority; and DX ratings, allotments, and rescheduling deliveries.

(a) The authority as described in this paragraph has been delegated to the Commander, AFLC (subparagraph (3) (i) through (iii) of this paragraph only) and to the Commander, AFSC with respect to: (1) DO rating program, (2) DX rating program for contracts and orders identifiable to programs of the highest national priority, and (3) allotting and rescheduling deliveries. These authorities are to be exercised within the limits of such allocation determinations or other quantitative restrictions as may be established from time to time by proper authority (see § 1.307 of this title). Each person who redelegates the authority will maintain a record of such redelegation and limits placed thereon.

(i) Authority to apply or assign the right to apply DO and DX ratings to contracts and delivery orders to meet DOD programs authorized for priorities support by the Office of Emergency Planning (OFP) or designated by OEP as eligible for priorities support through the Department of Defense.

(ii) Authority to assign the right to apply DO and DX ratings to certain prime or subcontractors on orders for delivery of production equipment specifically required to support authorized programs of the Department of Defense or of such other specifically designated programs.

(iii) Authority to assign the right to apply DO and DX ratings to certain contractors on orders for delivery of construction equipment for use on construction in Alaska, Hawaii, or outside the United States.

(iv) Authority to make allotments of controlled materials and to apply or assign to others the right to apply allotment numbers to ratable contracts and delivery orders within the allotment

jurisdiction of the Department of Defense.

(v) Reschedule deliveries of materials which are required in support of the Aircraft (A1) program and the AF portion of the Missiles (A2) program. Such authority is limited to rescheduling deliveries on rated orders or authorized controlled materials orders which: (a) Bear the designated program identifications, and (b) were issued by or pursuant to the authority of the delegate, or, if not, that the rescheduling is requested or concurred in by the department or associated agency under whose authority they were issued. Rescheduling of delivery may be directed only if it requires no change in the production schedule of the person making the delivery.

(vi) Administer the DMS Audit Program of Selected Airframe and Aircraft Component Plants assigned to DOD under the Department of Defense-Department of Commerce Interagency Compliance Agreement.

(b) The Commander, AFLC and the Commander, AFSC have redelegated through their respective procurement (and production) directors the authority described in paragraph (a)(3) (i) through (iii) of this section to and through successive echelons of command to all contracting officers of the Air Force, including procuring and administrative contracting officers.

(c) Authorities described in paragraph (a) (3) (iv) through (vi) of this section have been redelegated by the Commander, AFSC to the Deputy Chief of Staff (DCS) and Assistant DCS of Procurement and Production, Hq AFSC, with power of redelegation. The AFSC DCS of Procurement and Production has redelegated these authorities to the Director/Deputy Director of Production (SCKM) and the Chief/Deputy Chief of the Industrial (SCKMJ).

Materials Division

[27 F.R. 1611, Feb. 21, 1962, as amended at 28 F.R. 2792, Mar. 21, 1963; 28 F.R. 14315, Dec. 27, 1963; 30 F.R. 1775, Feb. 9, 1965] § 1001.461 Contracts for public utility services extending beyond current fiscal year.

(a) Contracts for power, gas, and water. (1) The Commander, AFLC, has been authorized to enter into contracts for public utility services (power, gas, water) for periods extending beyond the current fiscal year but not exceeding 10

years, under one or more of the following circumstances:

(i) Where there are obtained lower rates, larger discounts, or more favorable conditions of service than those available under contracts the firm term of which would not extend beyond a current fiscal year.

(ii) Where connection or special facility charges payable under contracts the firm term of which would not extend beyond a current fiscal year are eliminated or reduced.

(iii) The utility refuses to render the desired service except under a contract the firm term of which extends beyond a current fiscal year.

(a) The authority will be exercised according to the applicable provisions of the "Statement of Areas of Understanding Between the Department of Defense and General Services AdministrationProcurement of Utility Services" (AF Bulletin 53, December 19, 1950, Sec. III). The authority is also subject to the administrative procedures for review of contracts contained in AFR 91-5 (Utility Services).

(2) The authority of the Commander, AFLC, as described in subparagraph (1) of this paragraph has been delegated to the Director and Deputy Director of Procurement and Production, Hq AFLC, with power of redelegation.

(3) The authority referred to in subparagraph (2) of this paragraph has been redelegated by the Director of Procurement and Production to the Commander in Chief, United States Air Forces in Europe, with power of redelegation to the Director of Procurement and Production, without power of redelegation. The exercise of this authority is limited to contracts within West Germany.

(4) The statute authorizing definite term utility service contracts for periods not exceeding 10 years is 40 U.S.C. 481 (a) (3). The statute as well as 10 U.S.C. 2304(a) (10) will be cited on all definite term utility service contracts extending beyond the current fiscal year.

NOTE: Indefinite term utility service contracts as contemplated in Subpart KK, Part 1007 of this chapter (which are in effect until terminated) do not impose any obligation on the Government except as the service is actually used and therefore, do not come within the purview of this section. Such contracts will be approved pursuant to §§ 1001.455 and 1007.3706 of this chapter and will cite only 10 U.S.C. 2304(a) (10) as statutory authority.