equipment, which, in turn, would generate the establishment of uniform logistics support, procedures and expanded multinational operational capabilities.

(b) Co-production programs directly benefit the United States through:

(1) Creating in-country compatability with the U.S. standardized equipment, thereby creating Allied capability of supporting deployment of U.S. forces.

(2) Promoting the standardization of materiel or equipment to integrate and strengthen international military operations in times of emergency or hostilities.

(3) Encouraging multinational acceptance of strategic and tactical concepts and doctrine through the utilization of common military materiel.

(4) Encouraging the creation of complementary forces in Allied countries.

(5) Establishing or broadening the base for common and interchangeable logistics among free or Allied nations.

(6) Serving to improve procurement, production, contract administration and mutual support capability of friendly Allied nations.

(c) Co-production is considered to be an important component of the U.S. military foreign sales program and, as such, represents an essential element of U.S. foreign policy. Accordingly, it is DoD policy that initiation of co-production project agreements will be encouraged and supported by all elements of DoD under the following circumstances. When they:

(1) Advance the objectives outlined in paragraphs (a) and (b) of this section. (2) Supplement and reinforce the U.S. FMS program.

(3) Are in the best interest of the United States.

§ 194.5 Responsibilities and procedures. (a) Co-production projects may be initiated by ASD(ISA) or, subject to prior ASD(ISA) approval, by the Military Departments; the Military Assistance Advisory Groups; and by authorized representatives of foreign governments and international organizations.

(1) The cognizant DoD component will ensure appropriate coordination with ASD (ISA) and furnish technical and negotiating assistance as required.

(2) After the agreement is signed, the appropriate DoD component will perform necessary managerial and reporting functions.

(b) In conformance with responsibilities assigned in DoD Directive 5100.27.

(1) The Assistant Secretary of 1 fense (International Security Affai will:

(i) Develop and coordinate DoD po tions for the negotiation of co-producti agreements with foreign governme and international organizations; and

(ii) Either conduct negotiations specific agreements, or delegate this sponsibility to an appropriate D component.

(2) The Assistant Secretary of I fense (Installations and Logistics) wi

(i) Assure during coordination of f mal agreements, that the materiel to committed under the co-production pr ect will not adversely affect the U.S. fense supply or production base, or fu ther limit critical materiel; that consi eration had been given to the future gistical support of the equipment to produced; and

(ii) Monitor and act as OSD coor nator for implementation of co-produ tion projects under formal agreemen in coordination with other elements the Office of the Secretary of Defen as required.

(3) The Office of the General Coun of the Department of Defense will a sure necessary legal clearance, as r quired, prior to formalization of co-pr duction project agreements.

(4) The Assistant Secretary of D fense (Comptroller) will assist t ASD(ISA) and the ASD (I&L) during c ordination, as required, of formal c production agreements by providi necessary DoD representation and final cial guidance with respect to prici policies for U.S. military services ar equipment, cost sharing, and reportin requirements under co-production agre ments as they relate to internation balance of payments.

(5) Other OSD organizational el ments will assist ASD(I&L), as require in assuring that the terms and condition of co-production project agreements a met.

194.7 Reports required.

(a) A short narrative type report will e submitted to ASD(I&L) by the cogzant DoD component on a quarterly asis covering all formalized co-producon projects and agreements including ending agreements with a high potenal of being finalized within the next hree (3) quarters. The report will briefly ate project, project officer, background ighlights, current production and status cluding anticipated and approximate onetary return to the United States, rrent problem areas (if any) and fure major events or milestones. This rerting requirement has been assigned eport Control Symbol DD-I&L(Q) 834. (b) This report will be submitted in iplicate to OASD(I&L) by the close of he last working day of the month folwing the close of the quarter. The first port under this part will cover the uarter ending March 31, 1968, and be ue April 30, 1968. In addition, copies ill be forwarded to the appropriate nified Commands and MAAG's of the ountries involved. Further distribution ay be prescribed by the Military Deartment concerned.

194.8 Effective date and implementa+

tion.

The definitions set forth below will apply:

(a) Configuration. The functional and/or physical characteristics of hardware/software as set forth in technical documentation and achieved in a product.

(b) Configuration management. A discipline applying technical and administrative direction and surveillance to (1) identify and document the functional and physical characteristics of a configuration item, (2) control changes to those characteristics, and (3) record and report change processing and implementation status.

(c) Configuration item (CI). An aggregation of hardware/software, or any of its discrete portions, which satisfies an end use function and is designated by the Government for configuration management. CI's may vary widely in complexity, size and type, from an aircraft, electronic or ship system to a test meter or round of ammunition. During development and initial production, CI's are only those specification items that are referenced directly in a contract (or an equivalent in-house agreement). During the operation and maintenance period, any reparable item designated for separate procurement is a configuration item.

(d) Configuration control. The systematic evaluation, coordination, approval or disapproval, and implementation of all approved changes in the configuration of a CI after formal establishment of its configuration identification.

(e) Configuration identification. The current approved or conditionally approved technical documentation for a configuration item as set forth in specifications, drawings, and associated lists, and documents referenced therein.

(f) Configuration status accounting. The recording and reporting of the information that is needed to manage configuration effectively, including a listing of the approved configuration identification, the status of proposed changes to configuration, and the implementation status of approved changes.

(g) Allocated configuration identification (ACI). Current, approved performance oriented specifications governing the development of configuration items that are part of a higher level CI, in which each specification (1) defines the functional characteristics that are allocated from those of the higher level CI, (2) establishes the tests required to demonstrate achievement of its allocated functional characteristics, (3) delineates necessary interface requirements with other associated configuration items, and (4) establishes design constraints, if any, such as component standardization, use of inventory items, and integrated logistic support requirements.

(h) Base line. A configuration identification document or a set of such documents formally designated and fixed at a specific time during a CI's life cycle. Base lines, plus approval changes from those base lines, constitute the current configuration identification. For configuration management there are three base lines, as follows:

(1) Functional base line. The initial approved functional configuration identification.

(2) Allocated base line. The initial approved allocated configuration identification.

(3) Product base line. The initial approved or conditionally approved product configuration identification.

(i) Deficiencies. Deficiencies consist of two types: (1) Conditions or characteristics in any hardware/software which are not in compliance with specified configuration, or (2) inadequate (or erroneous) configuration identification which has resulted, or may result, in configuration items that do not fulfill approved operational requirements.

(j) Deviation. A specific written authorization, granted prior to the manufacture of an item, to depart from a particular performance or design requirement of a contract, specification, or referenced document, for a specific number of units or specific period of time.

(k) Form, fit and function. That configuration comprising the physical and functional characteristics of the item as an entity but not including any characteristics of the elements making up the item.

(1) Functional characteristics. Quantitative performance, operating and lo

gistic parameters and their respecti tolerances. Functional characteristi include all performance paramete such as range, speed, lethality, reliabi ity, maintainability, safety.

(m) Functional configuration aud The formal examination of function characteristics' test data for a confi uration item, prior to acceptance, verify that the item has achieved t performance specified in its function or allocated configuration identificatio (n) Functional configuration identi cation (FCI). The current approv technical documentation for a confi uration item which prescribes (1) a necessary functional characteristics, (1 the tests required to demonstra achievement of specified function characteristics, (3) the necessary inte face characteristics with associated CI (4) the CI's key functional characteri tics and its key lower level CI's, if an and (5) design constraints, such as er velope dimensions, component standard ization, use of inventory items, inte grated logistics support requirements. (0) Hardware/software. Hardware software, or a combination of both, i which the software includes only the associated with hardware for operation use, e.g., computer programs for com mand and control, handbooks for opera tions, maintenance, etc., and exclude fabrication specifications, drawings, et

(p) Key functional characteristic Those functional characteristics tha critically affect the configuration item satisfactory fulfillment of the opera tional requirements; for example, transport aircraft's payload/rang characteristics.

(q) Physical characteristics. Quanti tative and qualitative expressions of ma terial features, such as composition, di mensions, finishes, form, fit, and the respective tolerances.

(r) Physical configuration aud (PCA). The formal examination of th "as-built" configuration of a unit of CI against its technical documentatio in order to establish the CI's initial prod uct configuration identification.

(s) Privately developed item. An iter completely developed at private expens and offered to the Government as a pro duction article, with Government con trol of the article's configuration nor mally limited to its form, fit, an function.

(t) Product configuration identificaon (PCI). The current approved or onditionally approved technical docuentation which defines the configuraon of a CI during the production, peration, maintenance, and logistic apport phases of its life cycle, and hich prescribes (1) all necessary physial or form, fit and function characteriscs of a CI, (2) the selected functional haracteristics designated for production eceptance testing, and (3) the producon acceptance tests.

1(u) Unit. One complete configuration em. For example, one F-111A of a toquantity of 100 F-111A's.

(V) Waiver. A written authorization to ccept a configuration item or other esignated items, which during producon or after having been submitted for ispection, are found to depart from pecified requirements, but nevertheless re considered suitable for use "as is" or fter rework by an approved method. (w) Work breakdown structure WBS). A product-oriented family tree, omposed of hardware, software, serves, and other work tasks, which results rom project engineering effort during he development and follow-on producon of a defense materiel item, and hich completely defines the project/ rogram. A WBS displays and defines he product(s) to be developed or prouced and relates the elements of work

be accomplished to each other and the end product.

The objectives of configuration mangement are:

(a) To assist management in achievig, at the lowest sound cost, the reuired performance, operational effilency, logistics support and readiness of onfiguration items.

(b) To allow the maximum degree of esign and development latitude yet inroduce at the appropriate time the deree and depth of configuration control ecessary for production and logistics upport.

(c) To attain maximum efficiency in he management of configuration hanges with respect to their necessity, ost, timing and implementation.

(d) To attain the optimum degree of iniformity in configuration management

policy, procedures, data, forms and reports at all interfaces within the DoD and between DoD and industry. § 195.5 Policy.

(a) General—(1) Application. Configuration management, in accordance with this part and Part 195a of this subchapter, shall be applied to all CI's procured for use by the DoD, or obtained through an agreement between in-house activities. The application of configuration management shall be carefully tailored to be consistent with the quantity, size, scope, stage of life cycle, nature and complexity of the CI involved.

(2) Initiation of configuration management. Initiation of configuration management must be consistent with the development/production pattern of the CI involved.

(i) CI's to be developed at Government expense shall be subject to configuration management upon approval for Engineering or Operational Systems Development (DoD Instruction 3200.6, Reporting of Research, Development, and Engineering Program Information, June 7, 1962),1 except that when Contract Definition in accordance with Part 191 of this subchapter is applied, the lower level CI's shall not be subject to configuration management until completion of the Contract Definition. CI's in Advanced Development may be subject to configuration management; however, where applied, the application shall be limited to the control of functional characteristics and shall impose only the minimum necessary design constraints.

(ii) Where privately developed CI's are procured by the Government, configuration management shall be initiated upon establishment of the initial product configuration identification.

(3) Duration of configuration management. Once initiated, configuration management shall continue throughout the CI's life cycle until the CI is removed from the operational inventory. For the purposes of this part operational reserve and storage CI's are considered to be in the operational inventory.

(4) Responsibility for configuration management. DoD Components shall

1 Copies available from the Naval Supply Depot, 5801 Tabor Avenue, Philadelphia, Pa. 19120, Attention: Code 300.

exercise their responsibility for configuration management by designating, for each CI, an individual who is assigned the responsibility and delegated the authority for management of the item's configuration. For each CI for which system/project management is required in accordance with DoD Directive 5010.14, System/Project Management, May 4, 1965,1 the individual designated shall be the system/project manager. For each CI to which system/project management is not applicable, the DoD Component shall designate an individual by name and title, or by his position as head of a functional office. Further, DoD Components shall assure that their contractors or in-house equivalents have an internal configuration management system which satisfies, but is not required to exceed, the provisions of this part and Part 195a of this subchapter.

(5) Joint configuration management. When more than one DoD Component is involved in the acquisition, modification or support of a CI, the Component designated as having primary responsibility shall develop and document mutual agreements on configuration management, consistent with this part.

(6) Planning. Prior to initiating Engineering or Operational Systems Development or production of a configuration item, DoD Components shall assure that appropriately detailed planning for configuration management is accomplished, and that such plans are available for Office of the Secretary of Defense review when requested.

(7) Procurement aspects. DoD Components shall assure that appropriate provisions for configuration management are included in all contracts (or equivalent in-house agreements) for the development, production, modification and maintenance of CI's. Procurement planning and contract practices must be responsive to configuration management requirements.

(8) Documentation. The provisions of DoD Instruction 5010.12, "Technical Data and Information: Determination of Requirements and Procurement of," May 27, 19641 apply to the acquistion of all documentation relating to configuration management.

(9) Configuration audits. DoD Components shall perform audits, in accord

ance with Part 195a of this subchapt as follows:

(i) A functional configuration aud prior to acceptance of the CI, to veri that the item has achieved the pe formance specified in its functional allocated configuration identification.

(ii) A physical configuration audi prior to establishing the CI's initial pro uct configuration identification, to veri that the item and its technical doc mentation are compatible and suitab for use in producing and accepting uni of the CI.

(b) Configuration identification—(1 General. (i) For every CI, there shall b configuration identification establishe in the form of technical documentation This identification becomes more de tailed as design and testing progres Initially, functional configuration ident fication shall be used to establish per formance oriented requirements for th design and demonstration of a CI. Wher appropriate (for example, at the end Contract Definition), these require ments may be translated into allocate configuration identification for selecte configuration items that are part of higher level CI. Finally, for develope CI's (Government or private), produc configuration identification shall be use to prescribe "build-to" or form, fit an function requirements, and acceptanc tests for these requirements.

(ii) Configuration identification shal be used as the basis for configuration control and status accounting, with permanent record of this documentation maintained through the CI's life cycle This identification also shall be the basi for the preparation of technical, admin istrative and management document (e.g., work breakdown structures, techni cal reports, provisioning, and so on) tha concern or depend on a CI's configura tion.

(2) Functional configuration identifi cation (FCI). This identification shall b required on all configuration items ex cept those that are privately developed items. The initial FCI, i.e., the func tional base line, shall be establishe concurrently with approval to initiat Engineering or Operational Systems De