system capability, cost and schedule. Traceability of estimates and costing factors, including those for economic escalation, shall be maintained.

(3) Logistic support shall also be considered as a principal design parameter with the magnitude, scope and level of this effort in keeping with the program phase. Early development effort will consider only those parameters that are truly necessary to basic defense system design, e.g., those logistic problems that have significant impact on system readiness, capability or cost. Premature introduction of detailed operational support considerations is to be avoided.

(4) Programs shall be structured and resources allocated to insure that the demonstration of actual achievement of program objectives is the pacing function. Meaningful relationships between need, urgency, risk and worth shall be thereby established. Schedules shall be subject to tradeoff as much as any other program constraint. Schedules and funding profiles shall be structured to accommodate unforeseen problems and permit task accomplishment without unnecessary overlapping or concurrency.

(5) Technical uncertainty shall be continually assessed. Progressive commitments of resources which incur program risk will be made only when confidence in program outcome is sufficiently high to warrant going ahead. Models, mock-ups and system hardware will be used to the greatest possible extent to increase confidence level.

(6) Test and evaluation shall commence as early as possible. A determination of operational suitability, including logistic support requirements, will be made prior to large-scale production commitments, making use of the most realistic test environment possible and the best representation of the future operational system available. The results of this operational testing will be evaluated and presented to the DSARC at the time of the production decision.

(7) Contract type shall be consistent with all program characteristics including risk. It is not possible to determine the precise production cost of a new complex defense system before it is developed; therefore, such systems will not be procured using the total package procurement concept or production options that are contractually priced in the development contract. Cost type prime and subcontracts are preferred where substantial development effort is involved.

Letter contracts shall be minimized. When risk is reduced to the extent that realistic pricing can occur, fixed-price type contracts should be issued. Changes shall be limited to those that are necessary or offer significant benefit to the DOD. Where change orders are necessary, they shall be contractually priced or subject to an established ceiling before authorization, except in patently impractical cases.

(8) The source selection decision shall take into account the contractor's capability to develop a necessary defense system on a timely and cost-effective basis. The DOD component shall have the option of deciding whether or not the contract will be completely negotiated before a program decision is made. Solicitation documents shall require contractor identification of uncertainties and specific proposals for their resolution. Solicitation and evaluation of proposals should be planned to minimize contractor expense. Proposals for cost-type or incentive contracts may be penalized during evaluation to the degree that the proposed cost is unrealistically low.

(9) Management information/program control requirements shall provide information which is essential to effective management control. Such information should be generated from data actually utilized by contractor operating personnel and provided in summarized form for successively higher level management and monitoring requirements. A single, realistic work breakdown structure (WBS) shall be developed for each program to provide a consistent framework for

(i) Planning and responsibilities,

assignment

of

(ii) Control and reporting of progress, and

(iii) Establishing a data base for estimating the future cost of defense systems. Contractor management information/program control systems, and reports emanating therefrom, shall be utilized to the maximum extent practicable. Government imposed changes to contractor systems shall consist of only those necessary to satisfy established DOD-wide standards. Documentation shall be generated in the minimum amount to satisfy necessary and specific management needs. § 213.4 Related policy.

Responsibility for the following policy documents is assigned to the Cognizant

§ 214.2 Applicability and scope.

(a) The provisions of this Part 214 apply to the Office of the Secretary of Defense, the Military Departments, the Organization of the Joint Chiefs of Staff, Unified and Specified Commands, and Defense Agencies (hereinafter referred to collectively as "DoD Components").

(b) This Part 214 encompasses Defense actions worldwide except for: (1) Multinational actions in which the DoD is not the primary decision-making authority,

(2) Combat or combat-related activities in a combat zone, and

(3) Other emergency activities.

(c) In countries or areas not under U.S. control or administration, DoD actions with the exception of those noted in paragraph (b) of this section, are subject to the environmental laws, regulations and stipulations of the foreign government concerned subject to whatever agreements may exist between the U.S. and the country involved.

§ 214.3 Policy and objectives.

(a) It is the continuing policy of the Department of Defense, as a trustee of the environment, to demonstrate leadership and carry out its mission of national security in a manner consistent with national environmental policies and host country environmental standards, laws and policies. All practical means and measures will be used to minimize or avoid adverse environmental consequences and in attaining the objectives of:

(1) Providing a safe, healthful, productive and esthetically and culturally pleasing surrounding.

(2) Attaining the widest range of beneficial uses of the environment without degradation, risk to health, safety or undesirable and unintended conse

quences.

(3) Preserving important historic, cultural, and natural aspects of our national heritage and maintaining where possible an environment which supports diversity and variety of individual choice.

(4) Achieving a balance between resource use and development within the sustained carrying capacity of the ecosystem involved.

(5) Enhancing the quality of renewable resources and approaching the maximum attainable recycling of depletable resources.

(b) Toward this end, DoD Components shall:

(1) Assess at the earliest practical stage in the planning process and in all instances prior to the first significant point of decision, the environmental consequences of proposed actions.

(2) Review those continuing actions initiated prior to enactment of Pub. L. 91-190 for which the environmental consequences have not been assessed and ensure that any of the remaining actions are consistent with the provisions of this Part.

(3) Utilize a systematic interdisciplinary approach in planning and decision making.

(4) Concurrently consider along with the economic and technical considerations the unquantifiable environmental amenities and values in planning and decision making.

(5) Prepare and process under the criteria contained in §§ 214.6-214.8 a detailed environmental impact statement on every recommendation or report on proposals for legislation and other major defense actions which are expected to be environmentally controversial could cause a significant effect on the quality of the human environment.

or

(6) Study, develop, and describe appropriate alternatives to the recommended courses of action in any proposal which involves unresolved conflicts concerning alternative uses of available resources.

(7) Recognize the worldwide and longrange character of environmental problems and, where consistent with national security requirements and the foreign policy of the U.S., lend appropriate support to initiatives, resolutions, and programs designed to maximize international cooperation in anticipating and preventing a decline in the quality of the world human environment.

(8) Make available advice and information useful in restoring, maintaining and enhancing the quality of the

environment.

(9) Utilize ecological information in planning and developing resource oriented projects.

(10) Assist the Council on Environmental Quality (CEQ) as required by Presidential Statement on Preparation of Environmental Impact Statements, August 1, 1973.

(11) Refrain from taking any signifilcant implementing steps on administrative action until 90 days has elapsed

(a) The Assistant Secretary of Defense (Health and Environment) shall:

(1) Serve as the Secretary of Defense's responsible official under National Environmental Policy Act (NEPA) and the focal point for all Defense environmental matters.

(2) Provide assistance and advice on the preparation/processing of environmental assessments and statements and assign with the advice and coordination of the appropriate ASD's single service or lead office responsibilities in preparing and processing EIS's and environmental assessments when more than one Defense Component is involved.

(3) Review draft environmental statements submitted by DoD Components and other Federal agencies and solicit comments concerning such statements within the office of the Secretary of Defense and from appropriate DoD Components, and provide consolidated comments to the requesting DoD Component or agency that submitted the draft policies affecting the Department of Defense.

(4) Review issuances of the Office of the Secretary of Defense which have environmental implications to determine If environmental statements are required and to insure that environmental considerations are built into the decisionmaking process.

(5) Maintain liaison with CEQ, the Environmental Protection Agency (EPA), the Office of Management and Budget (OMB), and other Federal agencies and state and local groups, with respect to the enivronmental statements.

(6) In coordination with DoD Components, revise, supplement, consolidate or cancel the enclosures and attachments to this Directive as may be required to implement more effectively the policies set forth in this Part.

(7) Maintain a current quarterly DoD consolidated list of actions for which EIS's have been prepared or are under preparation, and a list of negative declarations (see paragraph (a) of § 214.8).

(8) Retain until the project is completed a copy of each draft and final environmental statement prepared with the Office of the Secretary of Defense for review by members of the public.

(9) Direct the preparation of EIS's for required actions.

(b) The Director, Defense Research and Engineering, Assistant Secretaries of Defense, Assistants to the Secretary of Defense and the Chairman of the Joint Chiefs of Staff within their respective functional areas of responsibilities shall:

(1) Monitor the application of policies contained in this Part with respect to the environmental aspects of continuing and proposed programs and projects.

(2) Develop procedures for periodic evaluation to determine when an environmental statement is required for a research and development program and insure that statements required for programs or actions are prepared and processed.

(3) Insure that all regulations, directives, instructions, and other major policy publications are reviewed for environmental consequences, and when such consequences are significant, withhold publication of issuances until compliance with section 102(2) of Pub. L. 91-190, National Environmental Policy Act.

(4) Coordinate as applicable the preparation of environmental statements with other elements of the Department of Defense.

(5) Designate a single point of contact within their offices for matters pertaining to this Directive.

(6) Assist ASD (H&E) in the review of environmental assessments and

statements.

(7) Coordinate with ASD (H&E) proposed directives and instructions that have environmental implications.

(c) The General Counsel shall:

(1) Advise the ASD(H&E) of all new legislation which has potential environmental implications for Defense activities.

(2) Advise the ASD(H&E) on matters relating to litigation interpreting statutory requirements and other areas as appropriate.

(d) The Secretaries of the Military Departments, Directors of Defense Agencies, and Commanders of the Unified and Specified Commands for operations under their jurisdiction, shall:

(1) Assess continuing and proposed programs and actions for their environmental consequence in accordance with the policies of this Part, and prepare and process environmental statements required for actions within their respective DoD Components.

(2) Insure that issuances and other major policy publications are reviewed for environmental consequences, and when such consequences are significant, withhold implementation until compliance with section 102(2)(c) of Pub. L. 91-190.

(3) Review environmental statements in their areas of expertise in accordance with Presidential Statement on Preparation of Environmental Impact Statements, August 1, 1973.

(4) Designate a single point of contact for matters pertaining to this Part.

(5) Retain a copy of each draft and final ELS prepared by the Component until the project is completed, and designate an office responsible for making such environmental statements available to the public except for portions that may be privileged.

(6) Prepare and maintain an applicable list of administrative actions for which EIS's have been prepared or are being prepared and a list of negative declarations and statements pertaining to negative determinations.

(7) In addition to the above, the Secretary of the Army may prescribe separate criteria and procedures for determining the need for and processing of environmental impact statements (EIS) with respect to Civil Functions of the Corps of Engineers.

(e) In addition to paragraph (d) (1) of this section, Unified and Specified Commands shall process environmental matters under normal JCS procedures except for environmental statements which shall be processed in accordance with the procedures contained in this Part. § 214.5 Reporting requirements.

(a) Type information required. Submission is required of a quarterly report, to CEQ for actions on which environmental statements have been prepared, are being prepared, and in certain situations, when it has been decided that an impact statement is not required. Under these circumstances, the DoD Component concerned is required to prepare a publicly available record briefly setting forth the Component's decision and reasons for determination.

(b) Submission procedure. DoD Components will submit in triplicate to ASD (H&E) a quarterly listing covering the above actions as prescribed in § 214.9 and documentation for applicable negative determinations. This information is to arrive no later than 20 days after the

quarter for consolidation and submittal to CEQ. The Unified and Specified Commands shall submit the required information to OJCS 15 days after the quarter for consolidation and submittal to ASD (H&E). Where more than one DoD Component is directly involved in preparing an EIS, only the lead agency will report the action. The initial submission shall cover the period September 1, 1973 to June 30, 1974. This reporting requirement has been assigned Reports Control Symbol DD-H&E(Q) 1326.

(c) Environmental Impact Statements have been assigned Reports Control Symbol DD-H&E (AR) 1327.

§ 214.6

Determinations of requirement

for environmental statements.

(a) General. (1) Section 102(2) (c), Pub. L. 91-190, requires that a detailed environmental statement be included in "every recommendation or report on proposals for legislation and other major Federal actions significantly affecting the quality of the human environment."

(2) Executive Order 11514 directs the Council on Environmental Quality to issue guidelines to Federal agencies for the preparation of the environmental statements required by section 102(2) (c) of Pub. L. 91-190.

(3) On August 1, 1973, the Council on Environmental Quality published revised guidelines for the preparation of environmental statements. These guidelines contain general guidance for determining when an environmental statement is required.

(4) This § 214.6 interprets and amplifies the general guidelines of the Council on Environmental Quality for Department of Defense actions.

(b) Geographical location of actions. (1) Environmental statements are required for actions described in paragraphs (c) and (d) of this section, conducted anywhere in the world except when conducted in, or partly in, areas which are in or under the jurisdiction of a nation other than the U.S. For major significant Defense actions conducted in, or partly in, areas which are in or under the jurisdiction of a nation other than the United States, the DoD Component responsible for the action shall provide the ASD(H&E) with a recommendation as to whether or not a statement should be prepared, reasons for the recommendation, and an evaluation of the effect of a statement on U.S. foreign relations. The ASD(H&E) shall coordinate these

latter cases as appropriate, and shall furnish procedural instructions to the responsible DoD Component.

(2) Environmental statements are not required for multinational activities (such as NATO) when the DoD Component involved does not have primary decisionmaking authority, or for combat or combat-related activities in a combat zone. (See paragraph (d) (3) (v) of this section.)

(3) The DoD Component shall comply with applicable environmental laws and policies, even though an environmental statement is not required. In countries or areas not under U.S. control or administration, projects or activities are subject to the generally applicable environmental laws, regulations and stipulations of the foreign government concerned.

(c) Actions included. (1) The legislative history of the National Environmental Policy Act of 1969 and the guidelines of the Council on Environmental Quality define actions as including, but not limited to, the following:

(i) Recommendations or favorable reports relating to legislation, including that for appropriations.

(ii) Policy, regulation, and proceduremaking.

(iii) New and continuing projects and program activities;

(a) Directly undertaken by Federal agencies;

(b) Supported in whole or in part through Federal contracts, grants, subsidies, loans, or other forms of funding assistance; and

(c) Involving a Federal lease, permit, license, certificate, or other entitlement for use.

(2) The differences in each of the above categories of actions should be considered in determining whether an environmental statement is required.

(d) Evaluation of requirement for environmental statement-(1) Proposals for legislation, annual authorization requests, and favorable reports of legislation (i) Legislative proposals other than authorization and appropriation acts. Prior to preparing a legislative proposal, the DoD Component shall assess the environmental consequences of the proposal using the factors of § 214.7. If it is determined that the proposal would significantly affect the environment, an environmental statement is required and shall be submitted with the proposal.