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I would also agree that there is potential for abuse in a related direction, and that is in many cases the Government, the contracting agencies, may acquire, pay for, collect, and retain too much data, and pay the price for unnecessary encumbrances. If I might briefly review the current situation, let me touch on four separate circumstances that arise.

First, let me address the cases where data is treated explicitly today in many contracts. This can be both product data, where the contractors will be told quite clearly what is to be done with engineering drawings and other specifications and materials and processes. In addition, contracts are very often quite elaborate in describing nonproduct data and what is to be done with it, how often submitted and retained. This will relate to administrative reports, audit findings, financial reports and a variety of contractor operational data. In many cases these are boilerplate requirements, imposed on everyone, particularly in the high dollar weapons system-type contracts.

At the current time, the Office of Federal Procurement Policy is, in fact, seeking to standardize many of these contract requirements with an eye toward making them uniform, just as the committee's intent seems to be, and to make sure that questions of national security, patent rights, copyrights, proprietary rights, and application of the Privacy Act are well understood and uniform. In that regard, the draft circular, which is out for comments, I will place in the record, with the committee's permission, and this can be a takeoff point for further discussions and deliberations.

Mr. WEISS. Without objection. [The information follows:

G0261021 Copeland 9/18/8

EXECUTIVE OFFICE OF THE PRESIDENT

OFFICE OF MANAGEMENT AND BUDGET

WASHINGTON. D.C. 20503

APR 1 3 378

MEMORANDUM TO THE HEADS OF EXECUTIVE DEPARTMENTS AND

ESTABLISHMENTS

SUBJECT:

control of Management System Criteria and Data
Required of Contractors

Attached is a copy of a proposed policy on the above subject
for your review and comment. This draft is the result of
consideration of informal comments on an earlier draft. The
policy is intended to implement recommendations A-33 and
A-34 of the Commission on Government Procurement. A decision
on the final form of issuance (circular, bulletin, other)
will be made after the comments have been received.
We would appreciate a response by close of business Monday,
June 19, 1978, so that we may incorporate appropriate revi-
sions.

Jannen I. Mentions &

nes T. McIntyre, Jr.
Director

Attachment

EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET

WASHINGTON, DC. 20503

OFFICE OF FEDERAL PROCUREMENT POLICY

DRAFT

TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS

SUBJECT:

Control of Management System Criteria and Data
Required of Contractors

1. Purpose. This document establishes policies to be followed by executive branch agencies in the control of development and application of contractually specified management system

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are required to be kept, reports and data to be submitted,

and product data retained or submitted.

While the cost impact

of such requirements varies significantly among individual procurements, the cumulative costs on all procurements have

been estimated to be billions of dollars annually.

Although

some of these requirements are essential, a system of checks

and balances is needed to ensure that such requirements are

necessary, that management system criteria rather than management systems are used, and that such requirements are coordinated

and compatible.

The system set forth herein is illustrated

in the attachment to this document.

The Commission on Government Procurement recommended more

effective control over the selection and imposition of such data requirements. This policy is based on executive branch consideration of the Commission's recommendations.

3.

Responsibility.

Each agency head has the responsibility

to ensure that the provisions of this policy are followed.

4.

Coverage.

This document applies to agency or interagency

regulations or other issuances included in purchase solicitations or contracts which: (1) directly or indirectly prescribe

management system criteria for use by contractor; (2) specify

product data

or nonproduc

data required by the Government

from the contractor; or (3) establish standards of accuracy

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a.

Management system is a term used to identify management disciplines which are employed to assist managers in:

(1) defining or stating policy, objectives, criteria, and requirements; (2) assigning responsibility; (3) achieving

efficient and effective utilization of resources; (4) periodic cally measuring performance; (5) comparing that performance against stated objectives and requirements; and (6) taking

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procedures or methods of accomplishment. Management system criteria may require generation, preparation, maintenance, analysis, evaluation, display, and dissemination of information.

C.

Product data requirement means a documented contract

requirement which directs contractors to collect, organize,

prepare, maintain, transmit, deliver or retain information

incident to the design, development, production, operation, preservation, maintenance or repair of contract end items. Product data include engineering drawings, product specifications and standards, part breakdown lists, catalog item identifications, operation and/or maintenance instructions, descriptions of product physical qualities and characteristics, computerized product

definition media, and reprocurement data.

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