(a) For systems proposed for engiering or operational systems developEnt, the WBS elements recommended CIR coverage will be submitted in a st Data Plan together with the Techal Development Plan to Director, fense Research and Engineering in acdance with DoD Instruction 3200.6 eporting of Research Development Engineering Program Information," June 7, 1962. For existing developnt systems to which CIR will be aped and for those systems in producn, separate Cost Data Plan submissions

be made to the ASD(Comp). The st Data Plan will be prepared in acdance with instructions issued by parate memoranda.

(b) Cost Data Plans submitted by the D Components will be reviewed by an SD Cost Data Plan Review Committee mposed of representatives from the Ofes of the Assistant Secretaries of Dese (Comptroller), (Installations and gistics), and (Systems Analysis), and om the Office of the Director of Defense search and Engineering and such other ements of OSD as may be designated by e ASD (Comp). The representative of ASD (Comp) will serve as Chairman the OSD Cost Data Plan Review Comttee. The ASD(Comp) will be responble for approval of all Cost Data Plans the advice and recommendation of the st Data Plan Review Committee. (c) To assure that the data banks aintained by DoD Components, in acrdance with DoD Directive 7041.1 "Cost d Economic Information System," ly 7, 1964, provide comparable statiscal data for the various aircraft, missile ad space systems covered by CIR, minium cost data requirements and reportg frequencies are established by § 250.5, d will be further amplified by separate emoranda. Cost Data Plans for the llection of CIR data will reflect these ecified data requirements and reportg frequencies.

(d) All CIR requirements approved by ASD(Comp) will be covered either by a contract with the contractor, or under an in-house agreement with the government facility. Contractually, each CIR form will be identified as a single line entry on the DD Form 1423 (DoD Instruction 5010.12 "Technical Data and Information; Determination of Requirements and Procurement of," May 27, 1964) with the breakdown of the WBS elements and frequencies for each report form shown as an attachment to the DD Form 1423.

(e) If a contract is broken down into individual line items, it should be consistent with the approved WBS. If the contract is not broken into individual WBS line items, the contract file will contain a copy of the CIR Work Breakdown Structure developed by the DoD Component cost analysis organizations (DoD Directive 7041.1 "Cost and Economic Information System," July 7, 1964), together with cost estimates prepared by the DoD Component for each element.

(a) Total CIR requirements. Total CIR requirements are contained in DD Form 15582 (Contract Cost Data Summary), 1558-12 (Functional Cost-Hour Report), 1558-22 (Progress Curve Report), 1558-32 (Fiscal Year Data Summary), and 1558-42 (Fiscal Year Functional Cost-Hour Report). Detailed administrative instructions for the preparation and submission of these forms are contained in the handbook entitled, "Cost Information Reports (CIR) for Aircraft, Missile and Space Systems."

(b) Work breakdown structure (WBS) elements. The WBS elements representing the minimum reporting requirements for each family of weapon/support systems covered by this part will be issued by a separate memorandum.

(c) Dollar guidelines. (1) The Military Departments may request contractors to submit all CIR forms, with the approval of ASD (Comp), for WBS elements at a more detailed level than the prescribed minimum list, which account for $15 million or more of the

2 Filed as part of original document. Copies may be obtained from contracting officers.

cumulative RDT&E TOA or $50 million or more of the cumulative production TOA.

(2) For those work breakdown structure (WBS) elements which are part of a system to be covered by CIR and which account for less than $15 million of the cumulative RDT&E TOA, or less than $50 million of the cumulative production TOA, the Contract Cost Data Summary, Functional Cost-Hour Report and/or the Progress Curve Report may be required, with the approval of ASD (Comp), if the element is being developed or produced under a separate contract between the government and a prime contractor. The Fiscal Year Data Summary and the Fiscal Year Functional Cost-Hour Report will not be requested for these elements. Requests for CIR should not be made on such elements unless they concern items which are being newly developed or which have or relate to specific costing problems which make it clearly in the best interest of the government to obtain such data. Requests for CIR on such elements should not be made on Firm Fixed Price (FFP) contracts except in very unusual circumstances.

(3) The prime contractor will be responsible for reporting CIR data for all the work included in the prime contract, in accordance with the approved Cost Data Plan, even though some of the work may be subcontracted. Subcontractors, however, will be required to prepare selected CIR forms applicable to their contracts, when the WBS element, or portion thereof, under the control of the subcontractor is 10 percent or more of the estimated dollar value of the total program and at least $50 million. When a contractor (prime or sub) is required to report on any WBS element(s) of the system to be covered by CIR, he will be required to submit at least the Contract Cost Data Summary and/or Fiscal Year Data Summary for all WBS elements specified in the approved Cost Data Plan for which he is wholly or partially responsible, regardless of the dollar amounts involved in these WBS elements.

(d) Minimum reporting frequencies. Wherever required, CIR submissions from the contractor should be made to the contracting officer who, within three

(3) days after receipt, will forward copy to the appropriate DoD Compone cost analysis organization and to cognizant office of the Defense Contra Audit Agency. The CIR submissi from the contractor will be made with forty-five (45) days after the due da or in accordance with the provisions ou lined in subparagraphs (1) and (2) this paragraph. When subcontract report to the prime contractor, the pri contractor will be given an addition fifteen (15) days to consolidate the a propriate reports. Where contracto reporting periods end on dates other th the last day of the month, they may permitted to report in accordance wi their respective accounting periods.

(1) RDT&E funding. (i) For ea contract of a given program funded fro the RDT&E appropriation, the Contra Cost Data Summary, Functional Cos Hour Report, and the Progress Cur Report are to be prepared at least sem annually, normally as of June 30 a December 31. Following delivery of th last prime item, a report marked "Pr liminary Final Report" will be submitte as of the end of the month in which th item was delivered and accepted. addition:

(a) For all cost-plus-fixed-fee co tracts, reports marked Final Report w be submitted when cumulative costs ir curred have reached 98 percent of th estimate at completion; however, whe subsequent contract modifications e ceed $10 million or 5 percent of the cor tract value (whichever is larger) as the last report submitted, reporting wi be continued as described in this para graph (d).

(b) For all incentive contracts (CPI FPI) under which items are being de livered, reports marked "Final Report will be submitted at the end of the mont during which the final price revision signed by the Contractor Government.

an

(ii) The Fiscal Year Data Summar and the Fiscal Year Functional Cost Hour Report, when required, are to b submitted annually. The appropriat DoD Component shall provide necessar guidance to the submitting contracto with respect to the scope of the progran to be reported and date for submission

2) Procurement funding. When tracts are funded from procurement propriations, all reports except the gress Curve Report will be submitted ually.

The Progress Curve Report I be submitted semiannually. In adon, reports will be submitted in acdance with the provisions of subparaph (1) (i) (a) and (b) of this paraph.

50.6 Audit reviews.

udit reviews of CIR data will be permed by the Defense Contract Audit ency. The scope and extent of such iews will consist of (a) an evaluation the effectiveness of the contractor's icies and procedures to produce data mpatible with the objectives of CIR, (b) selective tests of the reported a. Any exceptions will be included h appropriate comments in the audit orts.

This part establishes policies and produres for the utilization of offshore blic lands by the Department of Dese. Consistent with the conclusions d recommendations of U.S. Navy/U.S. Force Study Identifying Alternatives Existing Offshore Ranges, April 7, 56, as modified and approved by the sistant Secretary of Defense (Installans and Logistics), this directive will Eve as the basis for the establishment a comprehensive Offshore Military Etivities Program.

252.2 Applicability and scope.

(a) The provisions of this part apply all components of the Department of efense; and concern utilization for miliry purposes of the air space above, the

surface, subsurface, and seabed of the Outer Continental Shelf and, when necessary, State controlled offshore submerged lands which are used for military purposes.

(b) The policies and procedures established by DoD Directive 4165.6, "Real Property Acquisition, Management and Disposal," September 15, 1955 (20 F.R. 7113), and DoD Instruction 4165.12, "Prior Approval for Real Property Actions," February 6, 1967,1 are in no way modified by the provisions of this part.

(c) The responsibilities of the Secretary of the Navy arising by reason of the provisions of the Marine Resources and Engineering Development Act of 1966, 80 Stat. 203, Public Law 89-454 are in no way limited by this Directive. Furthermore, the Secretary of the Navy shall serve as the representative of the Department of Defense on matters for which he is assigned responsibility pursuant to Public Law 89-454; he shall keep the ASD (I&L) fully informed of programs planned or developed and actions taken in this connection, so that consistency may be maintained between the Marine Resources Program and the Offshore Military Activities Program.

(d) In the administration of navigation law with respect to navigation permits, the Corps of Engineers as a matter of general policy conducts liaison with the Military Departments prior to the issuance of a public notice in regard to a proposed establishment of danger zones, fairways, or anchorages and prior to granting drilling permits in the offshore area to insure compatibility with the Offshore Military Activities Program. § 252.3

Policy.

The Department of Defense supports the basic principle that public lands comprising the Outer Continental Shelf and State controlled offshore submerged lands should be utilized or, to the extent feasible, be co-utilized in the highest national interest. It is essential that the Department of Defense utilize substantial portions of such lands to maintain the effectiveness of its force structure; however, it is the policy of the Depart

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

ment of Defense that in utilizing offshore public lands, the Department of Defense will make use of the minimum amount of such lands as are essential for military purposes and will accommodate, on a shared-use basis nonmilitary interests to the maximum extent determined to be militarily and economically feasible.

(a) Upon determination by the Department of the Interior, or the coastal States, that the mineral potential of certain offshore public lands presently or proposed to be utilized for military purposes is of such importance that making such lands available for mineral production is highly desirable, the Department of Defense will endeavor to accommodate to the maximum feasible extent the Joint military-commercial utilization of submerged lands.

(b) In the event it is determined that nonmilitary interests cannot be accommodated without degradation of military programs not acceptable to the Department of Defense and alternatives are not available or are economically or militarily infeasible, the Department of Defense will endeavor to reach agreement with the Department of the Interior or the coastal States, as applicable, to exclude such areas from current and proposed leasing programs.

(a) The Assistant Secretary of Defense (I&L) or his designee, acting for the Secretary of Defense will:

(1) Develop and maintain a comprehensive program for the military use of the offshore environment to meet the objectives of the policies established herein and will provide direction and guidance to the military departments, as appropriate.

(2) Review and judge programs of the military departments designed to meet the objectives of policies established herewith.

(3) Negotiate, with the advice and assistance of the appropriate military departments, and enter into such administrative arrangements and agreements with the Department of the Interior and the coastal States as may be necessary to assure that their leasing plans and programs remain compatible with Department of Defense missions. Each interested military department shall be notified as soon as such negotiations or

preliminary discussions are conte plated, given the option of attending a negotiations or discussions in an ad sory capacity, and in any case be formed fully of the results thereof.

(4) Conduct continuing liaison W the Department of the Interior and a propriate coastal States to insure h monious relationships between their p grams and those programs of Department of Defense which must carried out on or over offshore pub lands; and further inform concern military departments of new develo ments in mineral leasing plans of the I partment of the Interior, coastal Sta and those industry programs of signi cance to current or foreseeable milita interests in offshore public lands.

(b) Under the general direction of t ASD (I&L), the military departme will:

(1) Review proposed mineral leasi maps of the Department of the Interi and the coastal States and advise AS (I&L) of areas proposed for lease whi could be incompatible with military mi sions, and recommend conditions a stipulations which should be imposed leases to assure the integrity of milita missions and otherwise protect the inte ests of the United States against clair arising out of damage to property and/ injury to nonmilitary persons.

(2) Establish and maintain lines communication and coordination so th each of the military departments a fully cognizant of plans, programs, an negotiations of other military depar ments with respect to offshore publ lands, to assure compatibility within th entire military framework. Such coord nation is hereby authorized an encouraged.

(3) Upon receipt of advice from th Corps of Engineers as to intent, condu liaison with the Corps of Engineers, prid to the issuance of a public notice by th Corps of Engineers in regard to the pro posed establishment of danger zone fairways and anchorages, or the issuanc of permits for offshore drilling to ensur the compatibility with offshore defens programs.

(4) Maintain a continuing review o military programs and weapon systems t support recommended amendments o addenda to U.S. Navy/U.S. Air Forc Study Identifying Alternatives to Exist ing Offshore Ranges, April 7, 1966, and

e other appropriate action with rect thereto with the approval of the sistant Secretary of Defense (I&L). 5) Inform the Department of the my (Office of the Chief of Engineers) any change in the status of Shared e Areas, Temporary Exclusive Use eas, and Extended Exclusive Use Areas. (6) Develop legislation, when requestby the ASD (I&L) pursuant to Public w 85-337 (43 U.S.C. 156), to restrict ainst operation of the mineral leasing visions of the Outer Continental elf Lands Act.

7) Conduct other activities related to e offshore environment as requested by ASD (I&L).

(a) This revision to Part 254 suppleents applicable provisions of DoD Inruction 3232.4, "Policy and Principles overning Provisioning of End Items of Cateriel," April 2, 1956; and estabshes provisioning and other preprorement screening policies and proceures which will (1) limit the entry of ew items into the DoD supply system to ose necessary to support logistics quirements, and (2) utilize available ocks of items already in the supply stem to meet provisioning and other gistics requirements so as to avoid necessary procurement. (b) Its provisions:

(1) Extend the mandatory requireent to screen reference numbers for all upport items recommended or being onsidered for procurement by provioning activities or Inventory Control oints (ICPs); and

(2) Place an additional requirement n the contractor, or government activty, to furnish all known reference num

See footnotes 1 and 2 on page 440.

bers for each item to be screened prior to procurement action.

§ 254.2 Applicability and scope.

(a) The provisions of this Part apply to the Departments of the Army, Navy and Air Force, and the Defense Agencies (hereafter referred to collectively as "DoD Components").

(b) The following items are excluded from the screening requirements of this part:

(1) Items assigned manufacturers' part numbers, government specifications and type numbers which are not item identifying (i.e., numbers that do not identify specific items of production or items of supply)

(2) Items assigned part numbers by manufacturers who have not been assigned Federal Supply Codes in DoD Cataloging Handbook H4-1.2

(a) "Provisioning and Other Preprocurement Screening" is an operation whereby all known reference numbers associated with an item are screened against data maintained in the Master Federal Catalog Files for purposes of revealing their association with existing Federal Stock Numbers (FSNs). Proviisioning and other preprocurement screening also provides for the screening of data files on releasable stocks, transferable retention stocks and DoD potential excess stocks for materiel utilization purposes, in accordance with DoD Directive 4140.34. "Department of Defense Personal Property Utilization," September 5, 1968.1

(b) "Reference Number" is any number, other than an activity stock number, used to identify an item of production or, either by itself or in conjunction with other reference numbers, to identify an item of supply. Reference numbers include manufacturers' part, drawing,

model, type, source controlling numbers, specification controlling numbers and the manufacturer's trade name, when the manufacturer identifies the item by trade name only; NATO stock numbers; specification or standard numbers; and specification or standard part, drawing, or type numbers. (Reference Federal Manual for Supply Cataloging, M1-4).2 § 254.4

Background.

(a) The Department of Defense is responsible for the development, imple