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AUTHORITY: §§ 1059.201 to 1059.1003 issued under sec. 8012, 70A Stat. 488; 10 U.S.C. 8012. Interpret or apply secs. 2301-2314, 70A Stat. 127-133; 10 U.S.C. 2301-2314.

Subpart A-[Reserved]

Subpart B-Use of Production Aircraft in Emergencies and Control of Flight Test and Demonstration Flights

§ 1059.201 Use of production aircraft in emergencies.

(a) Definitions. Production aircraft are defined in paragraph 2d(2), AMCR 83-1, January 26, 1960.

(b) Policy. (1) The Director of Procurement and Production, Hq AMC, may authorize the use of a production aircraft for emergency flights on official business, provided suitable permanently assigned aircraft are not available. Authorization will be granted for specific cases and only for emergency matters of limited duration. Requests for such authorization should be directed to AMC (MCP), Wright-Patterson AFB, Ohio.

(2) Local flights by AF or contractor pilots for the purpose of transitional training on the pertinent type of aircraft, or for similar related reasons necessary in the best interest of the AF, may be authorized by the local AF plant

representative.

(3) In any of the above cases, care will be exercised to select aircraft which have not been reported as available for delivery. Where the case is deemed to be of sufficient importance to warrant the use of aircraft previously reported available, immediate steps will be taken to cancel the availability notice and explain such cancellation.

(4) Care will also be exercised in selecting aircraft for such emergency missions, to avoid the necessity of performing a 25-hour or 50-hour check prior to arrival at the domestic destination designated in shipping instructions. Further, steps will be taken to insure that no additional expense is borne by the contractor for maintenance or service of the aircraft as a result of such missions.

[23 F.R. 1543, Mar. 1, 1958, as amended at 25 F.R. 12462, Dec. 6, 1960; 27 F.R. 12217, Dec. 11, 1962]

§ 1059.202

Control of flight test and demonstration flights.

(a) General. In the interest of exercising every reasonable safety precaution in the performance of flying these aircraft and to obviate as far as possible criticisms and complaints from residents in areas adjacent to the airports from which these flights originate, CMR commanders will establish and maintain in current status such procedures as they deem necessary to assure positive supervision of the aircraft under their respective jurisdiction. They will accomplish frequent and periodic examinations of the control and coordination between their activities and contractors under their cognizance to assure that any deviation from proven practices will be made the subject of corrective action. It is emphasized to all military and contractor flying personnel operating AF aircraft or aircraft in which the Government has assumed liability for flight risks, the importance of recognizing and feeling personally responsible for the highest possible flying safety standards and the maintenance of the good will of the general public.

(b) Policies and procedures. Certain rules and principles are basic in main

taining high flying safety standards. Local conditions may require that these basic rules be implemented with additional and more detailed instructions. CMR commanders are urged to initiate additional detailed instructions considered necessary to control flights of aircraft which are under their immediate jurisdiction and to maintain close supervision over all such flights to assure strict observance of these instructions. The following rules are mandatory:

(1) Test flights of a routine nature, not included in a test-flight program approved by the Government under a specific contract, may be made on authority of the CMR commander or his designated representative.

(2) Demonstration flights will be performed according to provisions of AFR 60-12 (Aerial Demonstrations).

(3) In addition to the authorization required for performing flights pursuant to subparagraphs (1) and (2) of this paragraph, pilot and air crew members will not perform flight tests or demonstration flights unless so authorized in writing by the CMR commander or his designated representative. (Such representative will be designated in writing over the personal signature of the CMR commander.) CMR commanders will use prescribed procedures in approving contractor flight personnel to assure that such personnel are technically qualified and have been certified to be in proper physical condition to perform the required work.

(4) All flights will be conducted according to AF regulations. Deviations from these regulations are prohibited except as specifically authorized by competent authority for test flight and/or demonstration flight purposes.

(5) Normally, all test flying will be conducted under VFR conditions during the hours of daylight. However, CMR commanders may authorize test and acceptance flights under other conditions when deemed necessary to more effectively accomplish their mission.

(6) Formation takeoffs are prohibited. Low-altitude flying over metropolitan and populated areas and any attempts at exhibitionism are prohibited. When tests require accomplishing low-altitude flying, it will be performed over areas specifically designated for this purpose.

(7) CMR commanders will make certain that all practicable rescue equipment is available to insure safeguarding

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of life in the event of crash landings or ditching. This includes adequate airsea rescue service.

(c) Responsibility for adequacy of airport and flying facilities. CMR commanders will insure that the airport and its facilities are adequate for safe operation of the aircraft to be flown.

(d) Flights requiring escorts. It is AF policy that first flights of experimental aircraft, first flights of initial article production aircraft, plus such subsequent flights as deemed necessary, and all flights of any test aircraft which are of a hazardous nature, or those which require observation from another aircraft to obtain data, will be accomplished by an "observer" aircraft.

[25 F.R. 12462, Dec. 6, 1960]

Subparts C Through D-[Reserved] Subpart E-Financing of Engineering and Development or "Product Improvement"

SOURCE: $ 1059.502 to 1059.504 appear at 25 F.R. 7648, Aug. 11, 1960.

§ 1059.502 Definition.

As used herein the term "product improvement" is a program of continuing engineering and development leading to improvement of weapons systems (airframes, engines, electronics and related equipments) and operational support equipment.

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Production funds may be used for "product improvement" when the effort is in one or more of the following categories:

(a) Service. Improvement of function and performance of equipment to be produced, being produced or previously produced.

(b) Increased producibility. Redesign of equipment or its method of manufacture to result in an increase in the amount of equipment manufactured from an equal input of labor and material.

(c) Small increases in performance. Defined as model-to-model improvement, usually relatively minor improvements in function, performance, or reliability of the production article.

(d) Large increase in performance. Development of equipment which is different in major respects from equipment being produced, and giving large in

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(a) Product improvement may be included in an Air Force contract at time of initiation or later by contract supplement by specifying the principal engineering items and amounts of money required for each item, or it may be initiated by a separate contract.

(b) It is necessary to distinguish between costs of a product improvement program proper, and changes in unit costs resulting from a product improvement. An increase in price of an end article caused by an improvement to the article through a product improvement program is not chargeable to the product improvement proposal, but is charged to production costs.

Subpart F-Special Procurements § 1059.601

Applicability of subpart.

This subpart applies to AFSC and AFLC procuring activities who are concerned with the procurement, production, and support of training equipment for all systems, procurement of external fuel tanks, and procurement of petroleum products in connection with AF contracts.

[27 F.R. 1227, Dec. 11, 1962]

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(a) Definitions. (See section D, part 1, volume I, AFM 67-1.)

(b) Policy. The normal practice will be to procure all training equipment on a competitive basis to the greatest extent economically and technically feasible.

(1) Training equipment common to more than one system and Flight Simulators will normally be procured as Category II per AFR 70-9 (Airborne Weapon System and Support System Procurement).

(2) The appropriate category of procurement, as defined in AFR 70-9, for those training equipments peculiar to a specific system, will be determined after receipt of contractor's training equipment planning information or performance specification according to MIL-D27382. Such training equipment will

not be purchased as Category I except as provided for in AFR 70-9.

(3) Where the use of Category I procurement is unavoidable, due to economic, technical, and other compelling considerations, the use of "make-orbuy," § 3.902 of this title, is to be implemented to the maximum extent possible. Each individual training device must be identified and each be subject to a "make-or-buy" decision. For example, within a mobile training unit, each individual trainer will be subject to a "make-or-buy" decision. Where the decision is "buy," every effort is to be put forth to require the prime contractor to achieve optimum competition. In no event should a decision to "make" be approved by the Air Force where it represents an expansion of the prime's facilities at Government expense while adequate facilities already exist elsewhere in industry.

(1) The cognizant

(c) Procedures. procuring office will require system prime contractors to submit training equipment planning information prepared according to applicable specifications beginning with and as a part of the systems technical proposals. The contractor will also be required to provide estimated costs associated therewith including initial spares and supporting technical data.

(2) Qualitative and quantitative requirements: (See AFR 375-4 (System Program Documentation), AFL 375-5 (Planning and Programming for System Personnel), and AFR 50-19 (Management of Training Equipment).)

(3) Configuration changes: (See AFR 65-3 (Configuration Management), AFR 50-19, and AFR 57-4 (Modification/ Modernization of Systems and Equipment).)

(i) According to instruction contained in ANA Bulletin 390A, weapon systems prime contractors will be required to automatically indicate by addendum to weapon systems ECPs any instance wherein the ECP also affects the supporting training equipment. This pertains only to changes recommended for incorporation on the training equipment while it is in production.

(ii) Changes to training equipment not in support of a specific system will be accomplished in accordance with AFR 50-19 and AFR 57-4.

[27 F.R. 12217, Dec. 11, 1962]

§ 1059.604 Procurement of petroleum and chemical products for aircraft and missiles.

(a) Definition. As used in this section, the following terms are defined:

(1) "Petroleum and chemical products." All petroleum products which are peculiar to aircraft, as well as all petroleum, chemical, and gas products peculiar to the guided missile program. These materials are further divided into: (i) Category I. Aircraft and missile propulsion fuels, oils, propellants (or components thereof), and services related thereto.

(ii) Category II. All petroleum and chemical products and services related thereto, other than Category I.

(2) "On-site." Any AF activity anywhere which has generating capacity in excess of its current requirements and which, for economy or urgency, can fill requirements of other AF activities, regardless of the distance involved.

(3) "Off-site." Any AF activity anywhere which has neither adequate generating capacity nor an economical commercial source of supply, to meet its current requirements.

(b) Policy (1) Category I. All types of materials in this category required in connection with Air Force contracts will be supplied as Government-furnished property (GFP) or as contractor-furnished property (CFP), depending on which method is in the Government's best interests:

(i) Items which can be furnished as GFP will not be CFP, unless CFP offers a clear-cut advantage.

(ii) “Off-site” liquid gas requirements will be supplied from Government generating facilities to the maximum extent possible, taking into consideration "onsite" requirements in comparison with available "on-site" production, availability of liquid gases from commercial sources, availability of transportation equipment, relative costs, and urgency of the requirements.

(iii) Exceptions for providing GFP material will be made when the circumstances of the proposed use or procurement of any materials in this category make it uneconomical or impractical for the Air Force to provide its own materials and facilities. Such circumstances will be:

(a) Where the contractor has conclusively established that his require

ments can be readily obtained from commercial sources at less cost than GFP and that contract performance will not be seriously impaired without Government aid.

(b) Where the contractor has conclusively established that it would not be economical or practical to make available adequate facilities to handle GFP.

(c) Where the contractor's total requirements for any item are relatively small, and GFP is not warranted. Such requirements will normally be less than tank capacities, i.e., less than 4,000 gallons, or less than a full railroad car, if shipped in drums.

Contractor's re

(2) Category II. quirements for all types of materials in this category will be furnished by the contractor as CFP.

(c) Procedure. The responsible procuring contracting officer will make the appropriate initial determination, based on guidance set forth in paragraph (b) of this section. This determination will be written and will be made part of the procurement file.

(1) In making this determination, the responsible procuring contracting officer will consider the contractor's scheduled delivery requirements, availability of supplies from terminals or depots, availability of private, public or Government transportation equipment, adequacy of existing private or Government storage and handling facilities, and feasibility and probable costs of making available during period of requirement adequate facilities for storing and handling Government-furnished property. In this connection, the contracting officer should:

(i) Ask the appropriate AF plant representative whether or not storage and handling facilities are available to accommodate GFP and, if not, the feasibility and probable cost of making such facilities available on a continuing basis.

(ii) When it has been found feasible to furnish fuels and lubricants or chemicals and gases as GFP, facilities and other factors considered, consult the Assistant for Fuels and Lubricants, Directorate of Supply and Services, Middletown Air Materiel Area (MAAMA), or the Raw Materials Division, Topeka Air Force Depot, Topeka, Kansas, to ascertain the feasibility of supplying a par

ticular contractor's requirements on a GFP basis and the approximate cost (depending upon which activity handles the item). When consulting these activities, the following information will be given them:

(a) Full nomenclature, specifications and stock numbers of items, or a statement that the items are nonstandard.

(b) Approximate total requirements, by months, for the period of the contract.

(c) Type of delivery acceptable to contractor (drums, tank car, tank truck, or barge).

(d) Location of plant and name of contractor.

(iii) Ascertain the cost to the Government, including contractor's service cost and fee or profit, if Category I materials are furnished by contractor.

(2) The procuring contracting officer's decision that an item will be GFP or CFP will be reviewed by the chief of the appropriate weapon system project office in procurements by Aircraft and Missiles Division, Hq AMC, or by the appropriate branch chief in other AMC procurement activities.

(d) Subcontracts. Before approving any subcontract involving materials of Category I, the responsible administrative contracting officer will investigate which method of procuring the materials will be most advantageous to the Government. In reaching their decisions, administrative contracting officers will be governed by paragraph (c) of this section. When investigation discloses that purchases of Category I materials from the contractor are inadvisable, administrative contracting officers will present their findings to the responsible procuring contracting officer, with recommendation that supplying materials as GFP be considered. If a decision has been made to supply Category I materials as CFP, the administrative contracting officer should not question subcontractors, unless conditions have changed to an extent which could be expected to affect the earlier decision.

(e) GFP requirements. (1) In all contracts that specify supply of Category I materials as GFP, the procuring contracting officer, upon distribution of the contracts, will submit the following information to the appropriate AMA or AF Depot.

(i) The AF contract number.
(ii) The period of the contract.
(iii) Quantities.

(iv) Specifications.
(v) Stock numbers.
(vi) Type of shipment.

(vii) Estimated costs.

(f) CFP requirements. In the case of CFP, the cost of such materials will be included in the overall cost of the contract end item.

(g) Middletown Air Materiel Area Work Specification MA 9130, Subject: Storage, Handling and Servicing of Aviation Fuels at Contractor Facilities, will be cited as a requirement in all contracts which involve servicing of aviation fuels at contractor facilities.

[24 F.R. 8161, Oct. 8, 1959, as amended at 26 F.R. 5261, June 13, 1961]

Subparts G Through

[Reserved]

Subpart J-Funding of Supply Contract to Include Production Acceleration Capability and/or Production Compression Capability Projects SOURCE: §§ 1059.1002 and 1059.1003 appear at 23 F.R. 1545, Mar. 1, 1958.

§ 1059.1002 Definitions.

(a) "Production acceleration capability" applies to developing capability for rapidly accelerating production of tactical or supporting systems to a predetermined peak rate in the shortest possible time.

(b) "Production compression capability" applies to developing a capability for maximum all-out production of strategic and air defense weapon systems during the initial phase of a general war (i. e., first 60-90 days).

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The primary objective of the Industrial Production Readiness Program is to create a flexible and responsive production base that can readily adjust to current program changes and to the special requirements of a limited or general war. This objective can only be achieved if production acceleration and/or compression projects are made a continuing and integral part of the appropriate weapon or support system development and production cycle. The administration of these projects must be in sufficient detail to insure good management and close control at all times, including status of funds.

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