become delinquent as to deliveries, he will promptly notify the production activity for initiation of a DD Form 375 marked "Action Document." The ACO will process inadequate DD Form 375 reports to the production activity for correction and clarification.

(5) After complying with the requirements specified in this section, the ACO, when authorized, will accomplish and issue, within 30 work days after receiving supply (prime AMA) and/or Aeronautical Systems Division (ASWG) (in the case of GFAE) coordination, a contractual modification revising the delivery schedule.

(6) Where investigation shows that grounds for a default termination may exist, the ACO will proceed according to the appropriate instructions set forth in paragraph (d) of this section and Subpart F, Part 1008, of this subchapter.

(d) Responsibilities of the PCO.

(1) Upon determination or notification that a contract under the administration of the PCO is delinquent or almost delinquent and if the PCO believes that a revision to the delivery schedule is warranted, the PCO will try to amend the delivery schedule by obtaining the necessary staff judge advocate and supply (prime AMA) and/or Aeronautical Systems Division (ASWG) (in the case of GFAE) coordination.

(2) Within 5 days after receipt of a DD Form 375 marked "Action Document," the PCO will review the forecast, narrative and recommendations to determine impact on the affected program and will reply to the ACO and the production activity. The reply will indicate concurrence or nonconcurrence of the action recommended on the DD Form 375.

(i) When concurrence is indicated and the administrative offices (production and ACO) have recommended delivery schedule changes, the PCO will, within 10 work days, forward the findings, etc., to the appropriate staff judge advocate for an opinion as to the legality of the proposed amendment. The original of the staff judge advocate's opinion will be returned directly to the PCO with copies to the ACO and to the production activity. When the ACO has recommended default termination or issuance of a "delinquency notice" letter according to Subpart F, Part 1008 of this subchapter, signed copies of the PCO's proposed action will also be forwarded to the

cognizant local readjustment activity and to AFSC (SCKAA). When the ACO has not concurred in proposed action, justification for proposed action by the PCO will be included in notification to the administrative offices and will cover the reasons advanced by the ACO.

(ii) When the PCO does not agree with the action proposed on the DD Form 375 marked "Action Document," he will furnish the administrative offices, local readjustment offices, and AFSC (SCKAA), when default termination or the issuance of a "delinquency notice” letter has been recommended, a statement of reasons for rejecting the recommended action.

(3) After complying with the requirements specified in this section, the PCO will accomplish and issue within 30 work days after receiving prime AMA and/or ASD (ASWG), coordination, and a contractual modification revising the delivery schedule.

(e) End article prime AMA and/or ASD (ASWG), coordination. With the exception of the revision of an unrealistic delivery schedule on a contract, where the originator of the PR-MIPR requirement initiates the request for an extension of delivery schedule, the concurrence of the end article prime AMA or in the case of GFAE, ASD (ASWG), will be obtained in all cases. When other service MIPRS are involved, coordination will be effected with the originator of the other service MIPR.

(f) In all other cases, neither the PCO nor the ACO is authorized to amend the delivery schedule without approval from higher headquarters. If the contractor elects, he may file a claim under Public Law 85-804, as implemented by Executive Order No. 10789. The contractor's claim will be processed according to Part 17 of this title.

(g) Any amendment of contract delivery schedules will conform strictly with the requirements of § 1001.305-50. [27 F.R. 1604, Feb. 21, 1962, as amended at 27 F.R. 9914, Oct. 9, 1962; 27 F.R. 11760, Nov. 29, 1962; 28 F.R. 2791, Mar. 21, 1963; 28 F.R. 14314, Dec. 27, 1963; 29 F.R. 3144, Mar. 7, 1964; 29 F.R. 8168, June 27, 1964] § 1001.310 Liquidated damages.

(a) (1) Liquidated damages provisions may be used only after prior approval of the following officials (as applicable) and the respective staff judge advocates: (i) Director of Procurement, Hq AFSC, and commanders of divisions and centers

with power of redelegation to not below the level of the Deputy Chief of Staff/Procurement and Production (or comparable level), (ii) Director of Procurement and Production, Hq AFLC, his assistant or deputies, (iii) Directors of Procurement and Production of AFLC procurement activities, and (iv) within the other major air commands, at not below the level of a staff officer responsible for procurement within the headquarters of the first echelon of command immediately subordinate to the major air command. Requests for approval will be made in writing (electrically transmitted messages, or letters). Oral requests (either in person or telephone) will not be accepted. The folIlowing information will be furnished: 1 (a) Identification number of the conI templated procurement (PR No., IFB No., and/or contract number); (b) data which will adequately substantiate the I need for strict compliance with the delivery schedule and reflect the estimated damage that will result if the delivery I schedule is not met; (c) the dollar amount of the contemplated procurement, the amount of competition available, the amount of estimated damages to be assessed, and the formula used to arrive at such estimate; (d) type and form of contract contemplated and the required delivery schedule to be met; (e) the AF technical personnel's written comment relative to the estimate of damages.

(2) The clause set forth below will be placed in the schedule when the clause in § 7.105-5 of this title is used and may I be placed in the schedule when the clause in § 8.709 of this title is used:

Liquidated damages will be assessed at the rate of (dollar amount) per day in accordance with the provisions of paragraph f. of the Default Clause.

NOTE: In construction contracts insert the phrase "the Termination for Default-Damages for Delay-Time Extension Clause" in lieu of, "paragraph f. of the Default Clause."

(3) The liquidated damages provision will not be used where the desired delivery is specified. (See § 1001.305.)

(4) Foreign procurement activities will not use liquidated damages provisions.

(b) To assure that the rate of assessment of liquidated damages is reasonable it is incumbent upon the procuring contracting officer to obtain the advice of the AF technical personnel concerned

with the requirement; e.g., in construction contracts, the civil engineering officer.

(c) If the supplies or services being procured can be reprocured readily from other sources in case of default, and the difference in price would represent the full measure of damages to the Government, liquidated damages provisions will not be used.

(d) Recommendations concerning remissions will be forwarded by the procuring contracting officer with appropriate documentation through AFLC (MCPP) or AFSC (SCMKP) as appropriate to Hq USAF (AFSPM-CP-1) for submission to the Secretary.

[27 F.R. 1605, Feb. 21, 1962, as amended at 28 F.R. 2792, Mar. 21, 1963]

§ 1001.312 Voluntary refunds.

(a) Contractors may tender voluntary refunds either by check or credit invoice (memo). Checks will be made payable to the Treasurer of the United States. It is preferred that the voluntary refunds be submitted to the administrative contracting officer. In whatever form the refund is made, it will immediately be forwarded by the recipient to the accounting and finance officer. If by check, the accounting and finance officer will furnish the recipient of the check a copy of the collection voucher. If the appropriate account cannot be readily determined, the check will be placed temporarily in a suspense account and immediate steps will be taken to determine the account to be credited.

(b) Voluntary refunds identified with a contract and tendered prior to final payment will be recognized by contractual modification issued by the ACO and credited to the applicable appropriation cited in the contract. Voluntary refunds made in connection with a contract, but after contract completion, will be credited to an applicable appropriation provided that it may be regarded fairly as in the nature of a price reduction. In the latter case, a contracting officer designated by the cognizant administrative office, will, in conjunction with the accounting and finance officer, determine the appropriation to be credited. The contracting officer will, without delay, issue an AFPI Form 23, "Administrative Notice of Removal of Funds." The AFPI Form 23 will reference the contractor's letter of transmittal and the manner of the refund, i.e., check or credit invoice (memo).

The following are examples of refunds and receipts of funds excluded from the definition of voluntary refunds as set forth in § 1.312 of this title and § 1001.312:

(a) Interim refunds made under fixed-price redeterminable and fixedprice incentive contracts (Subpart Z, Part 1054 of this subchapter).

(b) Debts owed by contractors and deferred payments (Subpart F, Part 163, Subchapter E of this title).

(c) Adjustment of funds under active AF contracts.

(d) Refund of overpayments disclosed by voluntarily reopened repricing negotiations (Comp. Gen. Dec. B-130534, April 30, 1957).

(e) Other contractual provisions or agreements between the contracting parties requiring such refunds (tax refunds, rebates, etc.).

[28 F.R. 5569, June 6, 1963]

§ 1001.313 Procurement of parts. [27 F.R. 11760, Nov. 29, 1962]

§ 1001.313-50 Initial procurement.

Initial quantities of spare parts, with the exception of military, industry, and contractor standard items, will normally be procured from the end item manufacturer. These parts may be procured through provisioning procedures, when appropriate, utilizing authorized contractual provisioning documents. Any proposal for deviations received and/or initiated by any AF activities to authorized contractual provisioning documents or their application, must be submitted to AFLC (MCSCP) for review and coordination prior to submitting the request for the deviation, for final action to (a) AFSC (SCMK-3) with respect to AFSC and OAR contracts, or (b) AFLC (MCPC) with respect to AFLC and all other major command contracts. [28 F.R. 2270, Mar. 8, 1963]

§ 1001.313-51 Replenishment procure

ment.

Spare parts required for stock replenishment purposes will normally be pro

cured from the commodity industry. Competition will be secured to the maximum extent practicable. It is very important that parts which can be procured on an open competitive basis without compromising the requisite safety, dependability, and effective operation of equipment, be so procured.

[27 F.R. 1606, Feb. 21, 1962]
§ 1001.313-52 Priorities.

Spare parts will be procured using the DO or DX rating (§ 1001.460) assigned to the end item being supported.

[27 F.R. 1606, Feb. 21, 1962]

§ 1001.314 Contracting officer's decision under the Disputes clause.

(a) This section deals with preparing decisions under the Disputes clause by contracting officers. The application of the following instructions are limited to cases where the Disputes clause contained in § 7.103-12 of this title is used. Where the Disputes clause of § 1007.42058 of this subchapter is used, the oversea command staff judge advocate rather than the Staff Judge Advocate, Hq AFLC, will be the source of advice regarding proposed decisions and will be the channel for forwarding data relating to appeals (also see the instructions preceding the clause in § 1007.4205-8 of this subchapter).

Where

(b) Preparation of decision. mutual agreement on a question of fact proves impossible, a findings and decision must be prepared by the contracting officer. This single document should contain a simple and concise statement of: (1) The claim, (2) the decision, (3) the findings of fact which support the decision, and (4) a reference to the Disputes clause. The factual determination must be relevant to the issues and supported by documents or oral statements. [28 F.R. 2270, Mar. 8, 1963]

§ 1001.314-52 Contractor's compliance and withdrawal after appeal is filed. Whenever the contractor, subsequent to filing an appeal with the Armed Services Board of Contract Appeals, elects nevertheless to accept fully the findings and decision from which appeal was taken or any amendment thereof, and gives written notification of such acceptance to the contracting officer concerned, the contracting officer will be responsible for promptly sending the contractor's notice of acceptance to the Staff Judge Advocate, Hq AFLC. Upon receipt of the

notice the Staff Judge Advocate in collaboration with the contractor will prepare and submit a joint motion of withdrawal to the Board. Similar action will be taken by the contracting officer in instances where the contractor, after filing an appeal with the Armed Services Board of Contract Appeals, in writing signifies partial acceptance with the findings and decision of the contracting officer.

[28 F.R. 2271, Mar. 8, 1963]

§ 1001.314-56

Delegation of authority

to process contract appeals.

The Commander, AFLC, has been delegated authority to process all contract appeals directly to the Armed Services Board of Contract Appeals and the Appeal Board, Office of Contract Settlement. The Commander, AFLC, has further delegated this authority to the Staff Judge Advocate, Hq AFLC, with power of redelegation.

[28 F.R. 2271, Mar. 8, 1963]

§ 1001.314-57

Chief Trial Attorney.

The Staff Judge Advocate, Hq AFLC, has designated the Chief, Contract Appeals Division, Office of the Staff Judge Advocate, Hq AFLC, as the Chief Trial Attorney to represent the Government in the defense of appeals before the Armed Services Board of Contract Appeals. Decisions of the Armed Services Board of Contract Appeals will be transmitted by the Chief Trial Attorney to the appropriate contracting officer for action according to the Board's decision. [28 F.R. 9580, Aug. 31, 1963]

§ 1001.318 Contracts conditioned upon the availability of funds.

(a) To provide administrative lead time and to overcome delays in the early part of a new fiscal year covering procurements to be effective July 1st of each year, the procedures cited in the following subparagraphs may be followed:

(1) Determine that the requirement is one specifically for operation and maintenance and is continuing in nature, that is, from one fiscal year to the next; that such requirement is necessary for normal operation; and that Congress consistently appropriates funds for such a requirement.

(2) If an affirmative determination is made by the contracting officer on all aspects of subparagraph (1) of this paragraph, the clause in § 1.318 of this title

may be included in the respective RFP or IFB, which can be issued sufficiently early in the procurement cycle to enable definitization and issuance of the contract a reasonable length of time prior to July 1st.

(3) After receipt of the proposals/bids, completion of the evaluation, etc., an award may be made a reasonable length of time prior to July 1st and contract distributed prior to actual receipt of evidence of fund availability.

(4) In transmitting a contract to the contractor which contains an "Availability of Funds" clause, attention must be invited to the specific clause together with a caution to the contractor not to commence performance until he is notified that funds are available.

(5) The contracting officer will contact the contractor and notify him of fund availability immediately upon being notified that funds have been certified in writing by the comptroller activity.

(6) The notification in subparagraph (5) of this paragraph will then be reflected by adding the fund citation to the contract by change order.

(b) The procedure in paragraph (a) of this section will not be used in solicitations for informational or planning purpose, nor will it be used in construction procurements or other individual procurement action not specifically in the category called for in paragraph (a) (1) of this section.

[29 F.R. 8062, June 25, 1964]

§ 1001.352 Individuals authorized to initiate purchase requests.

(Not applicable to base procurement activities supporting oversea bases according to AMCR 23-6, e.g., USAF logistic control groups and SMAMA.) A list of all individuals authorized to initiate Purchase Requests will be obtained and maintained by each base procurement office.

[27 F.R. 6108, Feb. 21, 1962, as amended at 29 F.R. 17038, Dec. 12, 1964]

§ 1001.353 Utilization of funds.

By law, funds are required to be used only for the purpose for which they were appropriated and no other. Moreover, obligations must not be incurred unless funds are available. Where essentially similar items are procured, whether on one or more contracts, the same funds must be cited. Similarly, where contracts are amended, as, for example, to

make changes or additions to work called for under a construction contract, which changes are essentially the same character of work, only construction funds should be used. This is not intended to preclude the citation of different, but appropriate, funds for different supplies or services in the same contract where such supplies or services are properly being procured under one contract.

[27 F.R. 6108, Feb. 21, 1962]

§ 1001.356 Tests of contractor manufactured equipment.

Only personnel designated by the Government and the contractor whose products are being tested should be permitted to witness such tests. Such contractor may designate others not in his organization to attend provided such request is in writing and approved by the Government.

[27 F.R. 1608, Feb. 21, 1962]

§ 1001.357

Use of new contracts for follow-on procurement.

(a) All follow-on procurements (adding articles in the prosecution of subsequent fiscal year programs) will be accomplished on separate and distinct contractual instruments and not as supplements to existing contracts.

(b) Chiefs or directors of procurement and production of AMAS, AFSC divisions, AFSC centers, APRE, APRFE, and staff officers responsible within major air commands may authorize exceptions to this policy when the best interests of the Government will be served. This authority will be exercised only where compliance with the policy is not practicable. The procurement file will include a statement by the contracting officer of justification with approval indicated by higher authority. Except as authorized in paragraph (c) of this section, the use of existent contracts will not be authorized for follow-on procurements when followon procurements cite funds of different appropriations or cite funds of the same appropriation subsequent to 3 years from the date of the contract.

(c) Authorization of exceptions to the policy in this section is not required in the following cases provided it is impossible to segregate costs between procurements:

(1) Follow-on procurements for pilotless aircraft or missiles when requirement is released on a partial basis, such as purchase of materials and assembly.

(2) Indefinite delivery, basic ordering agreements.

(3) Research contracts where the period of performance will not exceed 5 years from the date of the initial contract.

(4) Exploratory and advanced development contracts where the period of performance will not exceed 3 years from the date of the initial contract.

(5) Instances where Government exercises its rights under the option clause in the contract.

[28 F.R. 5569, June 6, 1963, as amended at 29 F.R. 3145, Mar. 7, 1964; 29 F.R. 4094, Mar. 28, 1964]

§ 1001.358 Policy regarding the consideration of loyalty of scientific researchers on unclassified research contracts.

(a) The problems of security and possible unauthorized release of classified information do not arise under unclassified scientific research contracts. The major consideration regarding the individuals involved should be their scientific integrity and ability. The only consideration relating to the loyalty of individual scientists engaged in work under Government contracts is the principle that it would appear to be against the national interest to give aid and comfort to a person disloyal to the United States. In conformance with this principle, the following policy has been adopted:

(1) The AF policy in considering proposals for contracts in support of unclassified research not involving security considerations is to assure that, in appraising the merit of a proposal submitted by or on behalf of a scientist, his experience, competence, and integrity are always taken carefully into account. Purchasing activities will not knowingly award or continue a contract in support of research for one who is:

(i) An acknowledged Communist or anyone established as being a Communist by a judicial proceeding, or anyone who advocates change in the United States Government by other than constitutional means.

(ii) An individual who has been convicted of sabotage, espionage, sedition, subversive activity under the Smith Act, or a similar crime involving the Nation's security.

(b) Whenever any purchasing activity has reason to believe that the activities described in paragraph (a)(1) (i) and (ii) of this section apply to a scientific