chase of liquid oxygen converters requiring compliance with Specification MILC-25666A (USAF) or MIL-C-009082D (USAF) where it is desired to allow the contractor to guarantee the converters for one year against the initial evaporation loss rather than comply with the second and third evaporation tests called for in those specifications.

GUARANTEE IN LIEU OF EVAPORATION TESTS

The bidder, in lieu of conducting the second and third evaporation tests called for under Paragraphs 4.5.3.2 and 4.5.3.3 of Specifications MIL-C-25666A (USAF) and MIL-C009082D (USAF), may offer a guarantee that the converters procured hereunder will meet the initial evaporation loss requirements of Paragraph 4.5.3 of said specifications for one year after delivery under this contract. In the event the bidder elects to guarantee the converters furnished hereunder, it shall so indicate in the space following.

We elect to guarantee in accordance with the clause following:

The Contractor guarantees that the liquid oxygen converters furnished under this contract shall fulfill the initial evaporation loss requirements of Specifications (MIL-C252666A USAF or MIL-C-009082D USAF), for one year after delivery of the respective containers under this contract and agrees to replace any converters rejected by the Government for failure to meet said requirement at no additional charge to the Government. Transportation charges resulting from such rejection shall be borne by the Government. In consideration of the foregoing the Contractor shall not be required to conduct the second and third evaporation tests required by Paragraphs 4.5.3.2 and 4.5.3.3 of the abovementioned specifications.

[24 F.R. 8161, Oct. 8, 1959]

Subpart G-Industry Preparedness Measures Contracts

Industry preparedness measures are of two categories:

(a) Plans and data which will provide for the accomplishment of industry preparedness to meet mobilization production objectives. This involves the determination of such requirements as manpower, materials, machine tools, and facilities necessary to provide an adequate production structure to meet a proposed program and to insure continued production. These measures are divided into three types:

(1) Industry security.

(2) Licensee-Licensor study.
(3) Exploratory measures:
(i) Production capability.

(ii) Production preparedness.
(iii) Duplicate data.

(iv) Economic readjustment.

(b) The elimination of specific manufacturing bottlenecks in aircraft and related components by solving production problems connected with high volume output. This category involves processes, designs, and methods to improve industry preparedness and accelerate post-M-day production. These measures are divided into six types:

(1) Reduction of critical materials. (2) Development of special purpose tools and equipment.

(3) Development of production methods.

(4) Redesign of items for high-volume production.

(5) Pilot production.

(6) Development of processes.

Subpart H-[Reserved] Subpart I-Termination of Second Sources Policy.

§ 1059.902

(a) Basic AF policy dictates the establishment and maintenance of a production base capable of orderly and rapid acceleration to mobilization production rates. The policy includes the retention of second sources when it is determined to be in the best interests of the Government. When pertinent facts and circumstances warrant the termination of a second source, the policy stated herein will apply.

(b) Prior to terminating or canceling second sources for aircraft, engines, propellers, or major equipment items such as fire control systems, etc., procurement personnel will obtain approval from Hq USAF. Such approval of the termination of second sources for items other than aircraft, engines, propellers, or major equipment items will not be required except where unusual conditions exist or large termination costs are involved. Subpart J-Funding of Supply Con

tract to Include Production Acceleration Capability and/or Production Compression Capability Projects

§ 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).

§ 1059.1003

General.

The primary objective of the Industrial Production Readiness Program is to create a flexible and responsive produc

tion 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.