AUTHORITY: The provisions of this Part 18-52 issued under 42 U.S.C. 2473 (b) (1). SOURCE: The provisions of this Part 18-52 appear at 36 F.R. 15625, Aug. 17, 1971, unless otherwise noted. § 18-52.000 Scope of part. This Part 18-52 prescribes procedures for the administration of priorities with respect to products and equipment, including the administration within NASA of the Defense Materials System (DMS), and procedures for developing and reporting requirements for certain specific materials other than controlled materials. Subparts 18-52.1, 18-52.2, 18-52.3, and 18-52.4 are concerned with DMS procedures. These four subparts supplement the instructions in the Department of Defense Priorities and Allocations Manual (PAM), the NASA supplement thereto, and § 18-1.307 of this chapter. Subpart 18-52.5 is concerned with procedures for development and reporting requirements for selected materials (propellants, pressurants, etc.) which are of critical importance to NASA's mission. § 18-52.001 Definitions. As used in this part, the following terms have the meaning stated below: (a) "Controlled materials" means domestic and imported steel, copper, aluminum, and nickel alloys in the forms and shapes listed in § 18-52.206. (b) “Headquarters Program Offices" means the Office of Manned Space Flight, the Office of Advanced Research and Technology, the Office of Space Science and Applications, and the Office of Tracking and Data Acquisition. § 18-52.002 General. (a) The Defense Materials System is maintained by the Government to assure priorities and allocation support of current production, construction, and research and development programs of selected Government agencies. The system has been declared by the Office of Emergency Preparedness (OEP) as an essential mobilization preparedness measure. The Defense Materials System operates within NASA under a delegation of authority from the Department of Defense. The system provides priorities authority for NASA and its contractors in obtaining raw materials, supplies and equipment from industry on a preferential basis. (b) The necessary priority support of an officially approved Government program is achieved through the techniques of allocation, apportionment and allotment with respect to controlled materials and through the techniques of priority rated orders for individual contracts wth respect to all other materials and equipment. (c) OEP has the basic responsibility for assuring that national resources for various materials and products are adequate to meet Government program schedules. The OEP directs certain Government agencies to provide estimates of requirements for selected materials to assure that their studies reflect the total demand. In addition NASA utilizes the military departments and other Government agencies as supply sources for certain materials in support of NASA programs. To facilitate procurement and distribution planning these agencies require reports of requirements from NASA. The data to be provided under this part will enable Headquarters to satisfy reporting requirements placed on NASA by other Government agencies. Subpart 18-52.1-DO Rating System § 18-52.100 Scope of subpart. This Subpart 18-52.1 prescribes procedures for the administration of the DO Rating System with respect to products and equipment, other than controlled materials, required for NASA programs. § 18-52.101 General. With minor exceptions, the use of priority ratings on both NASA contracts and purchase orders and on all contractor purchase orders is mandatory. Priority ratings are assigned on individual contracts and purchase orders by NASA personnel to whom authority has been delegated under NASA Management Instruction 5101.7 "Delegation of Priorities Authority." Complete information regarding the use of ratings, method of assignment, items not otherwise eligible for ratings, and additional instructions are set forth in section 2 of the Department of Defense Priorities and Allocations Manual (PAM). § 18-52.132 Application of ratings. A NASA contract or purchase order is "rated" by writing on the contract or order, or on a separate paper specifically identified with the contract or order the following: (a) DO or DX-(appropriate program code symbol); (b) The certification prescribed in section 2-3 of the PAM, i.e., "Certified for national defense use under DMS Reg. 1"; (c) The required delivery date(s); (d) Signature and Title of Authorized Official, and (e) In addition to the above data, all rated contracts or orders must include, or be accompanied by, the Priorities, Allocations and Allotments (September 1962) clause contained in the General Provisions of the contract. § 18-52.103 Nonrateable items. Priority ratings will not be issued for: (a) Direct procurement of "controlled materials"-steel, copper, aluminum, and nickel alloys; (b) Contracts for services, except those relating to deliveries of materials, or (c) Items ordered or requisitioned from GSA (Federal Supply Service). In addition to the above, a complete list of nonrateable items and classes of items is contained in Exhibit 1, Section 2-1 of the PAM. Subpart 18-52.2-Reporting of Controlled Materials Requirements § 18-52.200 Scope of subpart. This Subpart 18-52.2 sets forth the procedures for the furnishing by installations of quarterly reports of estimates of requirements for DMS controlled materials. The installation quarterly reports described in this Subpart are the basis of NASA's consolidated estimates to the Department of Defense (which acts as the claimant agency for NASA) and to the Office of Emergency Preparedness (OEP). The report required by § 18-52.201 above shall include: (a) For each separate claimant program, the controlled materials needed for all procurements to be made by the reporting installation showing (1) the materials to be purchased by contractors for production of Class A products, including construction, and materials for research and development, and (2) the materials to be purchased by installations for in-house operations. Materials required for production of Class B products are not to be reported; section 1-4 of the PAM sets forth the definition of Class A and B products). (b) A summary or total of the requirements reported in paragraph (a) of this section; and (c) A breakout from the data called for in paragraph (a) and the totals in paragraph (b) of estimates for the materials required for items and projects which are of highest national priority. Such programs as are authorized for the special DX priority rating may be found in the Department of Defense Master Urgency List. § 18-52.203 Basis for developing controlled materials requirements. The reports submitted in accordance with this Subpart 18-52.2 shall be based on the research and development, enditem, and construction programs which take into consideration all funds available or anticipated to become available. Estimates shall reflect the best judgment of the installations, and should, if possible, be derived by multiplying unit weight per item by scheduled production, with due consideration of production and purchasing lead times. When this approach is not feasible, other methods, such as factoring a relationship of materials to dollar value, engineering estimates, contractor estimates, or actual past usage of materials, may be utilized in preparing the requirements. Records shall be maintained by the installations of the methods and data used in preparing the reports, for review upon request by the Procurement Office, NASA Headquarters (Code KDP-3). 0603 The Procurement Office, NASA Headquarters (Code KDP-3), will: (a) Review field installation reports for accuracy of computations and reasonableness of computed quantities in relation to authorized program procurements: (b) Summarize data received from field installation into an overall NASA report for submission to the Department of Defense; and (c) Justify and defend NASA estimates as may be necessary before the Department of Defense and the Office of Emergency Preparedness. § 18-52.206 List of controlled materials-Defense Materials System Regulation 1. 1510 1511 Wheels, tires, and axles. Wire rods, wire, and wire products. Stainless steel-nonnickel bearing total. Stainless steel-nickel bearing-total. Nickel alloys-total. 5 percent through 29.9 percent nickel content. 30 percent through 49.9 percent nickel content. 50 percent through 100 percent nickel content. Brass mill copper base alloy products total. Plate, sheet and strip (except 1514). Rods, bars and wire. Ammo cups and discs. Brass mill unalloyed copper productstotal. 1512 1513 Tube and pipe. 1514 1520 1521 Plate, sheet and strip. DOD 1610 1611 1612 Aluminum-total. Rods and bars, porcelain coated. Rods and bars, rolled (excluding 1610 and 1612 and excluding stock for 1620, 1630 and 1661). Rods and bars, rolled, forging and impact extrusion stock. Wire and cable (excluding 1630). Installations and contractors acquire allotment authority to purchase controlled materials as follows: Under DMS, only the Department of Defense and Atomic Energy Commission are claimant agencies. As an associated agency, NASA allocates the materials it receives from the Department of Defense among the various installations in accordance with § 18-52.302. Installations reserve such quantities of the allocations as they need for in-house use and allot the remainder to prime contractors producing Class A products, in accordance with § 18-52.303. § 18-52.302 Allocations to installations. (a) Allocation. The Procurement Office, NASA Headquarters (Code KDP-3) will allocate to installations the allocation of controlled materials received from the Department of Defense, on DD Form 529, Allocation Determination (in duplicate), on the basis of requirement estimates submitted by the installations on DD Forms 614 and 614.1. DMS Officers at installations shall acknowledge receipt of allocations by signing and returning one copy of the DD Form 529 to the Procurement Office. Appropriate entries reflecting the transaction shall be made in DMS ledger accounts. Supplemental allocations will be processed in the same manner. Installations may request additional allocations by letter, telephone, or telegraph. Allocations made by telephone or telegraph will be confirmed by the Procurement Office, NASA Headquarters (Code KDP-3) on DD Form 529. (b) Return of unused allocations. Not later than the 5th day of each month, field installations shall review their controlled materials ledgers, together with their anticipated allotment requirements, to determine whether they have an excess allocation of materials. Al located quantities determined to be excess shall be returned promptly to the Procurement Office, NASA Headquarters (Code KDP-3). Returns of excess allocated controlled materials will be accepted by the Procurement Office, NASA Headquarters (Code KDP-3) at any time up to the 10th day of the 3rd month of each quarter. Return of excess allocations will be made on DD Form 530, in duplicate. § 18-52.303 Allotments. Installations shall make allotments of controlled materials on every purchase order or contract: (a) In placing authorized controlled materials orders for the direct purchase of controlled materials, except for small orders; (b) To prime contractors who produce class A products; (c) In placing orders for class A products acquired from distributors; and (d) In placing orders for controlled materials or class A products against GSA schedules. Effort should be made to assure that prime consumers apply for and receive allotments. Form letters similar to those shown in sections 3 and 4 of the NASA supplement to the PAM may be used for this purpose. Allotments should normally be issued to contractors for the full period of the contract unless the period is beyond the 1-year period within which NASA has been authorized to allot materials. Allotments shall be issued on Form DMS-10, Allotment of Controlled Materials (Production), or DMS-13, Allotment of Controlled Materials (Construction). Decreases of allotments will be made on Forms DMS-11, Allotment Decrease (Production), and DMS-14, Allotment Decrease (Construction). Form DMS-12, Applicant's Return of Allotment, should be used by contractors to return unused portions of allotments. Contractor applications should be screened to determine their reasonable accuracy as to quantities of materials and delivery shedule requested. § 18-52.304 Ledger accounts of controlled materials. (a) Ledger accounts shall be maintained by field installations and NASA Headquarters for recording DMS transactions. The ledgers are necessary to assure that no allotments are issued without proper authority; to record purchases of controlled materials for internal consumption; and to provide data for reports of actions taken. (b) The following account ledgers shall be maintained as a minimum requirement: (1) By the Procurement Office, NASA Headquarters (Code KDP-3)— (i) A ledger which reflects DMS transactions for each installation, showing the allocation made, allotments issued, returns received and remaining balance; and sum (ii) A master ledger which marizes the transactions of all field installations and Headquarters for each DMS material; (2) By installations-Ledgers for each quarter and each material by program (A1, A2, C2), as appropriate, which reflects the allocations received from Headquarters, allotments issued, returns to Headquarters, and remaining balances. (c) Detailed information regarding the various types of ledgers which may be established and instructions for recording transactions are set forth in the PAM, sections 5-6 and 5-7. All prime contractors who received allotments from NASA shall be required to maintain allotment accounts, in accordance with DMS Regulation 1 and section 5-6 of the PAM. § 18-52.305 Report of allotments and authorized controlled materials orders. (a) The Defense Materials System Officer of each installation which issues allotments shall provide the Procurement Office, NASA Headquarters (Code KDP-3) with a cumulative monthly report showing, for each controlled material and each calendar quarter, the allocation received, allotments made by claimant programs, amounts issued (with breakout for DX programs), and the unused balances. DD Form 492 will be used for this purpose. The report shall be prepared as of the end of the calendar month and be forwarded so as to reach the Procurement Office, NASA Headquarters (Code KDP-3) on or before the 10th day of the next month. The report shall reflect data contained in the ledger accounts. (b) The Procurement Office, NASA Headquarters (Code KDP-3) shall review and check field installation reports with NASA master ledger transactions, after which a consolidated report shall be prepared and submitted to the Department of Defense. The Procurement Office, NASA Headquarters (Code KDP-3) report will be made to the Department of Defense by the 15th of the month for the transactions of the preceding month. Subpart 18-52.4-Special Expediting Assistance § 18-52.400 Scope of subpart. This Subpart 18-52.4 sets forth procedures whereby field installations and contractors may obtain special assistance in expediting delivery of raw materials, supplies, and equipment from commercial sources on NASA programs. § 18-52.401 General. In most instances, with the use of priority rating and timely procurement action, it is possible to obtain satisfactory deliveries of materials and equipment to meet program schedules. However, conflicts occasionally occur among priorityrated programs competing for the same resources. A number of factors may cause such a conflict, such as a shortage of capacity to produce a material or product, or placement by different sources of similar orders on a supplier which require delivery within the same time period. Resolution of problems of this type are accomplished by using the special assistance procedure described herein if they cannot be resolved at the field level. Detailed explanation with regard to the special assistance procedure is contained in section 7 of the PAM and the NASA Supplement thereto. § 18-52.402 Criteria for special assistance requests. (a) Requests for special assistance may be submitted by field installations if there is, as a minimum, a clear demonstration: (1) Of the relationship and importance of the applicant's requirements to NASA programs; (2) Of the inability of the applicant to divert materials or equipment from other production to meet requirements; (3) That failure to obtain the supplies will delay NASA program schedules; and |