In the procurement of end items where the Government furnishes components which are covered by a procurement assignment, such components shall be procured in accordance with the procurement assignment. However, direct purchase may be made by a Requiring Department in exceptional cases where agreement is reached with the Procuring Department or is authorized in accordance with § 5.1201.

[26 F.R. 5306, June 14, 1961]

§ 5.1110-3 Purchase. of

components over and above those initially purchased with the end item.

The procurement of components covered by a procurement assignment, over and above those initially purchased with the end item, shall be effected in accordance with the procurement assignment. However, direct purchase may be made by a Requiring Department in exceptional cases where agreement is reached with the Procuring Department or is authorized in accordance with § 5.1201.

[26 F.R. 5306, June 14, 1961]

The Procuring Department will make bulk distribution to the Requiring Department of ten copies of all contracts and orders (including modification, changes, etc.) directly citing the funds of the Requiring Department. Two of the ten copies will be signed or authenticated. If the Procuring Department incorporates MIPR requirements into existing contracts by issuance of supplemental agreements, etc., one copy of the basic contract will be furnished to the Requiring Department for use of the finance office. In addition, one copy of all preceding contractual changes or a signed letter to the effect that preceding contractual changes do not relate to or affect the procurement of the MIPR requirements will be furnished.

[26 F.R. 5306, June 14, 1961]

In addition to bulk contract distribution as provided in § 5.1111, the Procuring Department will distribute one copy of each contract and subsequent contractual changes direct to each consignee.

[26 F.R. 5306, June 14, 1961]

§ 5.1112 Cancellation of requirements.

(a) Direct citation Procurement. When all or any part of the supplies or services requested in the MIPR are to be canceled by the Requiring Department, that Department will so notify the Procuring Department by telegraphic notice. In the event that the Procuring Department has not entered into a contract for the supplies and services to be canceled, the Requiring Department will be immediately notified to that effect. Upon receipt of such notification the Requiring Department shall initiate a MIPR amendment to revoke the estimated amount shown on the original MIPR for the canceled items.

(1) In the event that the items to be canceled have already been placed under contract, the following procedure will apply. Within 30 days after receipt of the notice of cancellation from the requiring department, the procuring department will issue a Termination Data Letter to the requiring department (original and 4 copies) which will contain as a minimum the information set forth below:

Subject: Termination Data Re:
Contract No.

Termination No.
Contractor

2. You are requested to forward an amendment to MIPR on DD Form 448 to reflect the reduced quantity and amount of funds available for release.

3. Periodic examinations (not less than 60 days) will be made as termination proceedings progress to redetermine the Governments probable obligation.

(Signature of Terminating Contracting Officer)

(2) Periodic examinations will be accomplished no less often than every 60 days to reassess the Government's probable obligation. If any additional funds are excess to the probable settlement requirements, or if it appears that previous release of excess funds will result in a shortage of the amount which will be required to consummate settlement, action will be taken to amend the Termination Data Letter accordingly.

(3) If required, an amendment to the MIPR covering final adjustment of funds with respect to terminated quantities shall be prepared by the Requiring Department upon the receipt of its copy of the Termination Settlement Agreement.

(b) Consolidated - Reimbursable Procurement. When all or any part of the supplies or services requested in the MIPR are to be canceled by the Requiring Department, that Department will so notify the procuring department by telegraphic notice. Within 30 days, the procuring department will notify the requiring department as to the quantity of items available for termination and the amount of funds in excess of the estimated settlement costs. Upon receipt of this information, the requiring department will issue a MIPR amendment to reduce the quantities and funds accordingly.

(c) Termination by default. When the procuring department exercises authority to terminate for default (Subpart F, Part 8 of this subchapter), that Department will query the Requiring Department as to whether the supplies or services to be terminated are still required so that repurchase action as specified in § 8.602-6 of this subchapter can be undertaken.

(1) The Requiring Department will not deobligate funds on a contract terminated for default until such time as a contractual supplemental agreement of settlement or other written evidence from the Procuring Department as to release of funds is received.

(2) On the repurchase action, the Procuring Department will not exceed the unliquidated funds on the defaulted contract without the provisions of additional funds by the Requiring Department.

[26 F.R. 5306, June 14, 1961]

§ 5.1113 Administrative costs.

The procuring department shall bear, without reimbursement therefor, the administrative costs incidental to its procurement of supplies for another Department. However, when a procurement responsibility is transferred from one Department to another Department, funds appropriated or to be appropriated for defraying the administrative costs of such procurement responsibility shall be made available to the successor procuring department which shall assume budget cognizance at the earliest possible date.

[26 F.R. 5307, June 14, 1961]

Policies and procedures concerning inspection and acceptance for use in conjunction with this subpart are set forth in Part 14 of this subchapter. [26 F.R. 5307, June 14, 1961]

§ 5.1115 Execution and administration of contracts.

Generally, the Procuring Department will execute a single contract where an award embodying the requirements of more than one Department is made to a single contractor. Administration of contracts shall be in accordance with the procedures developed by the procuring department in accordance with § 5.1103-1.

[26 F.R. 5307, June 14, 1961]

§ 5.1116 Status reporting.

Appropriate systems of followup shall be maintained by the procuring department in order that contracting personnel may be currently informed as to the performance by a contractor and to further insure that requiring departments are apprised of the status of contracts.

[26 F.R. 5307, June 14, 1961]

§ 5.1117 Transportation of supplies.

Subject to the provisions of Subpart M, Part 1 of this subchapter, every requisition or procurement request shall show the appropriation or fund and accounting classification chargeable for such

transportation costs as may be incurred in effecting delivery at Government expense. Government bills of lading, when required, will generally be issued by the Procuring Department. In every instance, the Government bill of lading shall show the requiring department as the Department to be billed, and the appropriation or fund designated by that Department as the appropriation chargeable. Where Government bills of lading of the procuring department are used to cover shipment of supplies consigned to the requiring department, the bill of lading number shall be prefixed by the name of the requiring department.

[26 F.R. 5307, June 14, 1961]

§ 5.1118

Procurement agreements.

10 U.S.C. 2308 provides that Military Department heads by agreement may make such assignments and delegations of procurement responsibilities from one military department to another or may create such joint or combined procuring activities or agencies as they deem necessary or desirable. Nothing set forth in this subchapter shall preclude the military departments from making agreements under 10 U.S.C. 2308 which do not violate the single procurement policies and procedures set forth in this subpart or in applicable Department of Defense Directives, Instructions, and regulations.

[26 F.R. 5307, June 14, 1961]

Subpart L-Commodity Assignments [Revised]

§ 5.1201

Assignment authority.

The commodity assignments set forth below have been made by the Assistant Secretary of Defense (Installations and Logistics) to the Military Departments, the Defense Supply Agency, and the General Services Administration.

[28 F.R. 12562, Nov. 23, 1962] § 5.1201-1

Exclusions-Military Department assignments, General exclusions to applicability of commodity assignments made to a Military Department are:

(a) Emergency procurements;

(b) Procurements not in excess of $2,500;

(c) Authorized local purchase items in amounts not exceeding the economic central buy point;

With respect to commodity assignments made to the Defense Supply Agency, the following categories of items within an assigned class may be purchased by the Military Departments at their option:

(a) Items in a research and development stage;

(b) Items peculiar to atomic ordnance materiel because of design characteristics or because of test-inspection requirements which are controlled by the Atomic Energy Commission;

(c) Items to be procured under the authority of a determination and findings issued pursuant to Title 10, U.S.C. 2304 (a) 12—Classified Purchases; i.e., purchases or contracts classified "Confidential" or higher, or where because of other considerations, a contract should not be publicly disclosed;

(d) Items to be procured under the authority of a determination and findings issued pursuant to Title 10, U.S.C. 2304 (a) 14-Technical or Specialized Supplies, requiring substantial initial investment or extended period of preparation for manufacture;

(e) Items which are directly related to a weapon and which are both procured from and produced by the weapon manufacturer;

(f) Items subject to rapid design changes or to continuous redesign or modification during the production or operational use phases which necessitates continual contact between industry and technical personnel of the requiring service to insure that the item procured is exactly what is required;

(g) Containers procured only with items for which they are designed;

(h) Emergency procurements, as determined by the requiring activity;

(i) Procurements of service-managed or noncataloged items not in excess of $2,500; and

(j) Noncataloged items in the nature of a onetime buy and not contemplated as an item of supply in the supply system.

[28 F.R. 12563, Nov. 23, 1963]

BATTERIES, DRY CELL

glycol, only.

RAILWAY EQUIPMENT

Locomotives..

Rail cars..

Right-of-way construction and maintainence equipment, railroad.

Locomotive and rail car accessories and components. Track materials, railroad.

TELEPHONE AND TELEGRAPH EQUIPMENT AND COMPONENTS, MILITARY Telephone and telegraph equipment.. Teletype and facsimile equipment... Intercommunication and public address systems except airborne. Electrical and electronic properties measuring and testing instruments. Communication training devices...

Reels and spools-------

TIME MEASURING INSTRUMENTS

Time measuring instruments.

Combination and miscellaneous instruments.

WEAPONS, FIRE CONTROL EQUIPMENT, AMMUNITION AND EXPLOSIVES

Guns, through 30-mm.

Guns, over 30-mm up to 75-mm.......

Guns, 75-mm through 125-mm..

Excludes: Locomotive cranes which are under DOD procurement assignment to the Department of the Navy, and specialized types of locomotive cranes used in overseas areas with other than U.S. standard gauges and standard clearances which are not under DOD procurement assignment.

Includes: Military (wire) equipment, field type, only. Includes: Military (wire) equipment, field type, only. Includes: Military (wire) equipment, field type, only. Includes: Instruments for testing military (wire) equipment, field type, only.

Includes: Code training sets, code practice equipment, and other telephone and telegraph training devices, only. Includes: Reels and spools for military (wire) equipment, field type, only.

Includes: All watches; aircraft instrument panel clocks; and spare parts therefor, as follows: aircraft clocks; aircraft panel clocks; athletic timers; cases, carrying, navigation watch; cases, master navigational watch; cases, watch, pocket; clocks, aircraft, mechanical; holders, watch; navigation watches, master; pocket watches; stop watches; watches, wrist, second, setting; watch case assemblies; watch movements; wrist watches. Includes: Jewel bearings, only.

Includes: Guns, through 30-mm, and parts and equipment therefor, as listed in Army Supply Manuals SM 9-5-1005, 10, 15; SM 9-1005, 10, 15. Excludes: Naval Ordnance type; MK-12, 20-mm gun; aircraft gun mounts; and all other types not included above. Includes: Guns, over 30-mm up to 75-mm, and parts and equipment therefor; as listed in Army Supply Manuals SM 9-5-1005, 10, 15; SM 9-1-1055, 10, 15. Excludes: Naval Ordnance type; aircraft gun mounts, and all other types not included above. Includes: Guns, 75-mm through 125-mm, and parts and equipment therefor; as listed in Army Supply Manuals SM 9-5-1005, 10, 15; SM 9-1-1055, 10, 15.

Excludes: Naval Ordnance type; aircraft gun mounts; and all other types not included above.

Includes: Guns, over 125-mm, and parts and equipment therefor; as listed in Army Supply Manuals SM 9-5-1025, 30; SM 9-1-1025, 30.

Excludes: Naval Ordnance type and all other types not included above.

Includes: Launchers, rocket and pyrotechnic, as listed in Army Supply Manuals SM 9-5-1055; SM 9-1-1050, 55. Excludes: Naval Ordnance type; airborne type; and all others not included above.

Includes: Miscellaneous weapons, and parts and equipment therefor, as listed in Army Supply Manuals SM 95-1090, 95; SM 9-1-1090, 95.

Excludes: Naval Ordnance type; guns, line throwing (which are under DOD procurement assignment to the Navy); aircraft type miscellaneous weapons; and all others not included above.

Includes: Fire control equipment, as listed in Army Supply Manuals SM 9-5-1210, 20, 30, 40; SM 9-5-1290; SM 9-1-1210, 20, 30, 40, 50, 60, 90.

Excludes: Naval Ordnance type and aircraft types.