18.

AUTHORITY: §§ 1-17.000 to 1-17.502 issued under sec. 205 (c), 63 Stat. 390; 40 U.S.C. 486(c). Interpret or apply 72 Stat. 972; 50 U.S.C. 1431-1435; E.O. 10789, 3 CFR, 1958 Supp., pp. 72-74; E.O. 11051, 27 F.R. 9683.

SOURCE: §§ 1-17.000 to 1-17.502 appear at 27 F.R. 12936, Dec. 29, 1962, effective Feb. 15, 1963.

§ 1-17.000 Scope of part.

As distinguished from the normal principles and procedures set forth in the other parts of the FPR, this part establishes uniform regulations for entering into and amending or modifying contracts to facilitate the national defense under the extraordinary, emergency authority granted by the Act of August 28, 1958, Public Law 85-804 (50 U.S.C. 1431-1435), set forth in § 1-17.501, hereinafter referred to in this Part 1-17 as "the Act," and Executive Order No. 10789 of November 14, 1958 (3 CFR, 1958 Supp., pp. 72-74), as amended by Executive Order No. 11051 of October 2, 1962, set forth in § 1-17.502, hereinafter referred to in this Part 1-17 as "the Executive Order."

(a) The Act empowers the President to authorize departments and agencies exercising functions in connection with the national defense to enter into contracts or into amendments or modifications of contracts and to make advance payments, without regard to other provisions of law relating to the making, performance, amendment, or modification of contracts, whenever he deems that such action would facilitate the national defense. (Similar authority was formerly contained in Title II of the First War Powers Act, 1941, which, as extended, expired June 30, 1958.)

(b) The Executive Order authorizes the head of each agency named therein to delegate the authority conferred upon him thereby to any other officials within his agency, and to confer on any such officials the power to make further delegations of such authority within their respective organizations. However, under the Act and the Executive Order, authority to approve actions obligating the United States in an amount in excess of $50,000 may not be delegated below the secretarial level, as defined in § 1-17.104 (b).

§ 1-17.102 General policy.

(a) Authority conferred by the Act shall be delegated in a manner which will best serve the interests of the national defense and, at the same time, retain control over the exercise of the authority at a level within the agency which is high enough to insure uniformity of action.

(b) The authority conferred by the Act shall not be utilized so as to encourage carelessness and laxity on the part of persons engaged in the defense effort nor be relied upon where other adequate legal authority exists.

(c) The actions authorized under the Act shall be processed as expeditiously as practicable consistent with the care, restraint, and exercise of sound judgment, appropriate to such extraordinary authority.

(a) The Act and the Executive Order provide that each agency shall, by March 15 of each year, submit to the Congress a report of all actions taken within the agency under the authority of the Act during the preceding calendar year.

(b) The report shall show the information set forth in (1) below for all actions approved, and in (2) below for all actions denied. In addition, for each approved action which involves actual or potential cost to the Government in excess of $50,000, the report shall show: name of contractor, actual cost or estimated potential cost, description of property or services involved, and a statement of the circumstances justifying the action.

(1) For actions approved:

(i) The total number of actions, total dollar amount requested, and total dollar amount approved; and

(ii) By type of action (amendments without consideration, correction of mistakes, formalization of informal commitments, and such other actions as appropriate), the number of actions, dollar amount requested, and dollar amount approved.

(2) For actions denied:

(i) The total number of actions and total dollar amount requested; and (ii) By type of action, the number of actions and dollar amount requested. (c) The report should omit any information which is classified "Confidential" or higher.

(d) A report is not required if no action (either approving or denying relief) was taken under the authority during the year.

Subpart 1-17.2-Requests for Contractual Adjustment

§ 1-17.200 Scope of subpart.

This subpart sets forth standards and procedures for the disposition of requests for contractual adjustment under the Act.

an

§ 1-17.203 § 1-17.204

cases.

(c) "Defense contract" means agreement of any kind (whether in the form of a letter of intent, purchase order, or otherwise) for property or services necessary, appropriate, or convenient for the national defense.

[Reserved]

Standards for deciding