16.304, 16.501, and 16.504 of this chapter, or in Part 5 of this chapter; (c) purchases under indefinite delivery type contracts existing before the effective date of this subpart; (d) amendments of contracts existing before the effective date of this subpart; or (e) contracts with agencies of the U.S. Government, foreign governments or agencies thereof, State or local governments or agencies thereof, or nonprofit contracts with nonprofit educational or research institutions. Further exceptions may be established by the Contract Finance Committee (§ 163.12–3), with the approval of the Assistant Secretary of Defense (Installations and Logistics) or his representative.

[32 F.R. 11955, Aug. 18, 1967]

§ 163.119-1 Further exceptions.

The following further exceptions have been established pursuant to the second sentence of § 163.119:

(a) Contracts for instructions of military personnel, or ROTC personnel, at civilian schools, colleges, and universities; and

(b) Basic agreements with telephone companies, under which communications services and facilities will be ordered, and purchases under such agreements.

(c) Transportation contracts with common carriers for common carrier services, e.g., common carrier transportation services procured by transportation requests, transportation warrants, bills of lading, and similar transportation forms (§ 1.102 of this chapter).

[28 F.R. 6353, June 20, 1963, as amended at 32 F.R. 11955, Aug. 18, 1967]

§ 163.120 Exemptions from administrative interest charge.

Contractors and contracts mentioned in § 163.119 (e), and other contractors in exceptional circumstances, may be exempted from the administrative interest charges required by this subpart when so agreed by the Contract Finance Committee (§ 163.12-3) with the approval of the Assistant Secretary of Defense (Installations and Logistics) or his representative. [32 F.R. 11955, Aug. 18, 1967]

ments, to cause debts to be listed on t consolidated list of contractors indebt to the United States, commonly kno as the "Hold-up List," to remove nan from the "Hold-up List," to determi administrative uncollectibility, and refer debts to the General Accounti Office or the Department of Justice appropriate. Within each Department, arrangement for postponement or ferral of payments may be made witho the approval of the contract financi office. Acting in conformity to the stan ards stated in this subpart those offic may approve or deny deferment pr posals transmitted to them or made rectly to them by contractors, or appro such proposals on prescribed condition

(b) Responsibility for assuring effe tive administration in accordance wi this subpart shall be in the Assista Secretary of Defense (Installations a Logistics). Responsibility for effecti administration under this subpart each Department shall be in the Und or Assistant Secretary responsible for t comptroller function. The Contract F nance Committee (§ 163.12-3) shall a vise and assist the Assistant Secretary Defense (Installations and Logistics) assuring proper application of polici and the development of procedures her under, and in the formulation of su further instructions on this subject may appear desirable. That Committe is responsible for this part and will de velop and promulgate herein supple mental instructions on this subject.

(c) Reports will be made by each De partment in connection with the subje matter of this subpart at such times an in such form as may be prescribed or ap proved by the Assistant Secretary of De fense (Comptroller) and the Assistan Secretary of Defense (Installations an Logistics).

[32 F.R. 11956, Aug. 18, 1967]

§ 163.122 Delays or failures of notic or demand.

It is expected that demand (§§ 163.106, 163.106-2, 163.107, an 163.118 (ii)) and notices (§ 163.118 (iv) will bear a date closely approximatin the date of transmittal; such demand and notices, and the supplemental agree ments mentioned in § 163.118 (iii), will b delivered in due course to the contrac tors. It could happen occasionally tha there is undue delay after the state date of a demand or notice, before it

ispatch, or that there is undue delay in le mails or other selected means of comunication after transmittal of a deand, notice, or supplemental agreelent or that a demand, notice, or suplemental agreement is not in fact reived by the contractor, and that the onreceipt is not the result of any act omission on the part of the conactor. In such cases, the due date of e debt and the starting time for accrual interest thereon will be extended to ich time as is fair and reasonable der the particular circumstances. For ample, if there is substantial delay beeen the date of a demand or notice, id the actual date of its dispatch or ansmittal, the actual date of dispatch transmittal would apply instead of e date stated on the demand or noce. Such delay should not be allowed happen. Also, for example, if there is usual delay in the mails or other sected form of communication, after disatch or transmittal of a demand, notice, supplemental agreement, the date of ceipt by the contractor would apply inead of the earlier date otherwise applible, and if the demand, notice, or supemental agreement, as the case may is not received by the contractor, the ate of transmittal of a second demand, ptice, or supplemental agreement would ply instead of the earlier date otherise applicable.

8 F.R. 6353, June 20, 1963]

The Federal Claims Collections Act of 66 (P.L. 89-508, 80 Stat. 308), July 1966, authorizes the compromise of rtain claims that do not exceed $20,000. his statute also authorizes termination suspension of collection action on such aims. Actions under this statute must nform to standards prescribed jointly 7 the Attorney General of the United tates and the Comptroller General of e United States. These controlling andards have been established by joint gulations published in the FEDERAL EGISTER Of October 15, 1966, pages 3381-13385, Title 4, Chapter 11, entitled, Joint Regulations Prescribing Standrds for Administrative Collection, Comromise, Termination of Agency Collecon Action, and Referral to General Acbunting Office, and to Department of ustice for Litigation, of Civil Claims by overnment for Money or Property." 32 F.R. 11956, Aug. 18, 1967]

§ 163.123-1 Delegation.

Department of Defense Authority under the above statute and joint regulations (§ 163.123) has been delegated to the Departments (§ 163.3). Within each Department, for those debts covered by this subpart (§163.98) authority to act in conformity to the cited statute and joint regulations has been delegated to the contract financing office (§ 163.26). [32 F.R. 11956, Aug. 18, 1967]

§ 163.124 Bankruptcy reporting.

For those debts covered by this subpart (§ 163.98), claims in bankruptcy or insolvency, or in proceedings for reorganization or rearrangement will be furnished to the Department of Justice. These claims are (a) those which have been transferred to a contract financing office (§ 163.109), (b) those on their way to a contract financing office at inception of bankruptcy or insolvency proceedings, (c) those pending and not forwarded to a contract financing office at inception of bankruptcy or insolvency proceedings, and (d) those which are the consequence of bankruptcy or insolvency proceedings. Proof of claim, with pertinent supporting data and documentation shall be furnished to the Department of Justice by the contract financing office (§ 163.26) or by such other office or offices as may be designated within a Department. Information will be supplied to the contract financing office by the office of origin of a debt as soon as possible after the beginning of proceedings for bankruptcy, insolvency, reorganization or rearrangement. Information, reports, and proof of claim under this section are not expected on debts of less than $250.

§ 164.1

Purpose and cancellation.

(a) This part provides uniform guidance and sets the maximum standards for use by DoD Components in developing procedures to be followed by contractors in preparing and submitting Contract Funds Status Reports (CFSR). The data collected will assist DoD Components in the management of contract funding.

(b) The provisions of this part cancel and supersede DD Form 1097, "Financial Management Report," dated November 1, 1959; the DD Form 1097 Addendum (NAVWEPS 7810/4); and the Contractor Financial Requirements Estimate (CFRE) in all contracts awarded after 120 days from the date of this part. If suitable arrangements can be made to incorporate the provisions of this part in existing contracts, the current use of DD Form 1097, DD Form 1097 Addendum, and the Contractor Financial Requirements Estimate will be discontinued.

(c) Section 164.5 will be utilized by contractors in reporting the data required.

§ 164.2 Applicability.

The provisions of this part apply to the Military Departments, the Defense Supply Agency and other DoD Components (hereinafter referred to collectively as "DoD Components") responsible for determining fund requirements for contracts and managing the flow of such funds.

The Contract Funds Status Report will:

(a) Provide DoD Components with information to assist in (1) updating and forecasting contract fund requirements, (2) planning and decision making on funding changes, and (3) developing fund requirements and budget estimates in support of approved programs;

(b) Provide input data to those DoD managers concerned with the need for and flow of funds. These managers will analyze the Contract Funds Status Report, with other inputs, for the purpose of forecasting funding needs at the DoD/ Contractor interface, as well as within DoD channels.

§ 164.4 Responsibilities.

DoD Components will:

(a) Supply the respondent contractors through normal contractual channels

with supplementary implementing structions containing, as a minimum following:

(1) A list of applicable line i (specified in the contract) against w the contractor will report in addi to reporting on the total contract. line items or categories of informa selected for Contract Funds Status port coverage may be defined accor to the needs of the funding agency. definitions will be in no greater d than that required to support the gories used in preparation of an budget calls and Program Change quests (PCR) as specified in section and V of the implementing Manua DoD Instruction 7110.1, "Guidance Preparation of Budget Estimates, Bu Execution Programs, and Apportionn Requests, and Related Support M rial," dated August 9, 1965, i.e., line: reporting will not be required for line item normally funded for less $500,000; definitions will also sup specified work breakdown structures are applicable.

(2) Appropriate program data which contractor estimates are requ (e.g., future year requirements not ye contract but approved in the Five Y Defense Program or proposed in Prog Change Requests) and any specific li tations on the use of the forecast colu of the form (Item 11g-i).

(3) Data processing instructions the contractor who submits the data punched card or magnetic tape form, instructions for submitting narrative marks in such cases. In the event t

more than one DoD Component des mechanized data processing from a s gle contractor, Components will prov the contractor with a uniform and tually agreed upon set of data process instructions.

(b) Assure that:

(1) In those situations where two more appropriation sources are used funding a single contract or line it and contractors are required to segreg funds data by appropriation account reference, the contract specifies instr tions for such reporting or segregation (2) Contractor reports are tim and submitted in accordance W

instructions.

(3) Submitted data are checked discrepancies and necessary correctio are furnished by contractors.

(4) When line items in a contract are ecified for Contract Funds Status Rert reporting, the line entries of the port are in consonance with the line ms in the contract.

(5) Implementing Instructions provide requiring a reduced level of reporting thin the framework of Contract Funds atus Report for small contracts, Time d Material contracts, and similar effort ere the entire Contract Funds Status port might not be required. Criteria such reporting are described in 64.5.

(6) Requirements for data to be colted from contractors will at all times held to the minimum essential to supt fund justification statements by th DoD Component.

64.5 Instructions for preparing DD Form 1586, "Contract Funds Status Report"

99 1

a) Purpose of the Contract Funds tus Report (CFSR). (1) The Conct Funds Status Report DD Form 16 is designed as an integral part of Selected Acquisitions Information 1 Management System (SAIMS), to ply the funding data that, with other formance measurement inputs, will wide information about Defense concts to System/Project Program manrs for: (i) Updating and forecasting itract fund requirements, (ii) plang and decisionmaking on funding anges in contracts, and (iii) developfund requirements and budget estites in support of approved programs. compares current funding with estited fund requirements and describes relative firmness of requirements on ich estimates are based. Reasons for ange are also explained.

(2) In view of the lead time required adjust approved levels of funding en changes in estimated fund requirents are involved, reporting accurate ormation as early as possible as a tter of pronounced importance to the ntracting parties who must utilize the formation.

(3) These instructions include deiptions of data items which are the ntractor's required input to the Conct Funds Status Report. This report

Filed as part of original document. (DD m 1586 may be obtained by request rough the regular supply channels of the ilitary Departments.)

will be implemented on all new contracts to replace reports such as the DD 1097, DD 1097 Addendum NAVWEPS 7810/4, and the Contractor Financial Requirements Estimate (CFRE), and if suitable arrangements to incorporate this reporting requirement can be made, the current use of the aforementioned reports will be discontinued in existing contracts.

(b) General instructions.

(1) Reporting on Multiple Appropriations: Where two or more appropriation sources are used for funding a single contract or line item, contractors will segregate funds data by appropriation accounting reference when the contract specifies instructions for such reporting or segregation.

(2) Required Levels of Detail: If the total contract is funded with a single dollar amount and funding is not further broken out by contract line item, the contractor will report on one line in this report for the total contract. When a contract specifies certain line items with a value of $500,000 or more for Contract Funds Status Report reporting, the line entries in this report will be aligned with such breakdown. In such cases contractors will report for the total contract in addition to the required line items. The line items or categories of information selected for Contract Funds Status Report coverage may be defined according to the needs of the funding agency. Such definitions should be in no greater detail than that required to support the categories used in preparation of annual budget calls. Increased requirements for approved levels of funding may require data for specific items or elements more detailed and with greater frequency than that identified in the contract. The selected circumstances under which such increased detail and frequency might be required will be solely in support of funds management requirements and tasks and will be described in the contract or will be subject to agreement. Such requirements may be continued until the contractor acknowledges that the approved funding is adjusted to meet these increased requirements, e.g., if contract line item "a"2 has a potential overrun indicated, then fund requirements estimates may be necessary for subordinate components of item "a" such as Work Breakdown Structure Elements "b", "c", and "d" (which comprise Contract Line Item "a", but are not specified in the contract for Contract Funds Status Report reporting) until funds availability is adjusted to satisfy the increased fund requirement.

(3) Reduced Level of Detail: DoD Components will issue implementing instructions to

2 On DD Form 1586.

provide for requiring a reduced level of reporting within the framework of Contract Funds Status Report for: (a) those small contracts whose dollar value is between $100,000 and $500,000, (b) time and material contracts, and (c) similar effort where the entire Contract Funds Status Report might not be required (e.g., no line item reporting, fewer than total data items in the columns or heading). This reduced level of reporting may be extended to contracts larger than $500,000 if the DoD Component does not desire the full report.

(4) Reporting Financial Data:

(i) Data showing funding levels and estimated fund requirements will be entered in applicable columns in the same line as the contract line item which is specified in the contract. Under those exceptional conditions described above, which call for increased detail, data at the funded contract line item level must be supported by data for items representing one lower level of detail.

(ii) Data shown for the total contract, or for line items identified in the stub of the form, will represent the contractor's expected total fund requirement for the item in the period identified in Item 3, including General and Administrative and Fee/Profit, for the categories identified in the columnar headings of the form.

(5) Reporting Frequency and Report Timing: This report will be prepared at the end of each calendar quarter or most similar contractor accounting period nearest to the end of the calendar quarter. Reports will be submitted within 30 days of the agreed upon cutoff date. Under those exceptional circumstances described above, which call for increased frequency, such frequency will not exceed monthly reporting and will be specified in the contract or will be mutually agreed upon.

(6) Submission Information: This report will be submitted in the manner specified in the contract.

(7) Definitions: For this report, a commitment is an incurrence of a firm obligation by the contractor, and the contractor's legal liability with regard to subcontracts, purchase orders, work in process, etc., on the "as of date". Unless the contractor has received a Notice of Termination affecting the contract, commitment should be reported on the assumption that work on the contract will continue to completion. A report should include commitments pertaining to the terminated portion of a contract only to the extent these are included in an estimate of termination costs. Expenditures are defined as actual disbursements of funds by a contractor for "in-plant" or subcontract expenses pertaining to the contract, including fee. Expenditures which are also within the limitations of contract authorization and fund limitation clauses or modifications

should all be reported including pro payments to subcontractors.

(8) Security: Ordinarily the reports submitted under this § 164.5 will not re security classification. However, when information in the report is classified contractor will insure that the proper rity classification has been assigned th port in accordance with Industrial Sec Regulations. The latest executed copy Form 254 (Security Requirements q List) will indicate the proper security c fication. Company information of a pr etary nature will not be classified exce protect information which falls within Espionage Act. It will be protected by Department of Defense and will be ha in accordance with Title 5, paragraph 1 the United States Code.

(9) Narrative Remarks: A separate will be used to submit any additional i mation or remarks which support or ex data submitted in this report. Inform on "Changes," specified in this (§ 165.5(d)) will also be reported in narrative.

(10) Mechanized Data Submissions: V a computer program is available for pro ing the required data, they may be mitted in mechanized form following cedures specified by the contracting Component. Otherwise data should be mitted in the attached form. Where are furnished for mechanized proces narrative remarks should accompany or cards and identify pertinent item which they apply, and a print-out sh be included to expedite processing.

(11) Exclusions From Coverage: Thi port will not be required on Firm F Price Contracts, as defined in (32 3.404-2). In addition, all contracts w total value is less than $100,000 and contracts expected to be completed months or less will be excluded from Con Funds Status Report coverage.

(c) Specific instructions.

Item 1: Contract Number-Enter the signed contract number and the latest ification number on which a contrac agreement has been reached.

Item 2: Contract Type-Enter the tyl contract as identified in (32 F.R. 4. such as:

Cost Plus Fixed Fee (CPFF).
Fixed Price Incentive (FPI), etc.

Item 3: Contract Funding-For F Year-Enter the applicable type as spec in the contract as follows: Multi-Year Procurement (MY). Incrementally Funded Research and D opment Contract (INC). Contract for a Single Year (SY).