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(b) Page 2 of Optional Form 61.

agency (see Item 1), or (ii) another business concern. Proxurement of Experimental, Development and Research work is to be included. 3. COMMITMENTS. Commitments as used herein means contracts, purchase orders or other legal obligations executed by the reporting Company for goods and services to be received by the reporting Company. Commitments shall include increases to purchase orders and contracts less downward adjustments to purchase orders and contracts as a result of contract changes, cut-backs, or terminations. 4. SUBCONTRACT AND PURCHASE COMMITMENTS. Subcontract and purchase commitments will include all commitments (net, after adjustments) to a supplier of subcontracted or purchased articles, materials or services, as defined in 2 above, except purchases from 1 company, division, or plant which is an affiliate of the reporting company.

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OPTIONAL PURN NO. 61
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m (41 CFR) 1-16.304 [33 FR 17295, Nov. 22, 1968] Note: Agencies may enter the letters N.A. (meaning not avallable) in each block where data is called for by the forms and the data is not avallable by the close of the first reporting period (1.e., June 30, 1969) because of necessary changes in systems employed to collect the data.

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Standards for using residus War Powers Act, 1941, which, as

e head of each agency named therein tinguished from authority to tal Subpart 1-17.4—Records of Requests and delegate the authority conferred upon propriate contractual action pursl

thereby to any other officials within such approval. beancy, and to confer on any such tehaks the power to make further dele- clal at or above the level of an as

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gations of such authority within § 1-16.903 Department of Justice forms.

1-17.402 Final records.

respective organizations. However

117.408 Sample format for preliminary der the Act and the Executive Orde Department of Justice forms are illustrated in this section in the same manner

and final records.

thority to approve actions obligatia and for the same purpose as is stated in § 1-16.901 for standard forms.

Subpart 1-17.5—Act and Executive Order United States in an amount in exc 1-16.903–DJ-1500 Form DJ-1500: Identiral Bid Report for Procurement.

1-17.500 Scope of subpart.

$50,000 may not be delegated belo 1-17.501 The Act of August 28, 1958 secretarial level, as defined in § 1

(Public Law 85-804; 50 U.S.C. (b).

1431–1435).
1-17502 Executive Order No. 10789 of No-

§ 1-17.102 General policy.
vember 14, 1958.

(a) Authority conferred by th AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 shall be delegated in a manner 18C.486(c).

will best serve the interests of th Source: 29 FR 10348, July 24, 1964, unless

tional defense and, at the same tir therwise noted.

tain control over the exercise 11-17.000 Scope of part.

authority at a level within the

which is high enough to insure un As distinguished from the normal ity of action. principles and procedures set forth in (b) The authority conferred the other parts of the FPR, this part Act shall not be utilized so as stablishes uniform regulations for en courage carelessness and laxity tering into and amending or modifying part of persons engaged in the d contracts to facilitate the national de effort nor be relied upon where anse under the extraordinary, emer adequate legal authority exists. Facy authority granted by the Act of (c) The actions authorized und August 28, 1958, Public Law 85-804 (50 Act shall be processed as expeditio

18C. 1431–1435), set forth in 1-17.501, practicable consistent with the ca pereinafter referred to in this Part 1-17 straint, and exercise of sound jud u "the Act," and Executive Order No. appropriate to such extraordina. 1789 of November 14, 1958 (3 CFR, 1954- thority.

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18 Comp., pp. 426-428), as amended by $ 1-17.103 Types of actions.
becautive Order No. 11051 of Septem-
2 27. 1952 (3 CFR, 1959–1963 Comp.,

The following three types of 635-644), set forth in § 1-17.502,

may be taken by or pursuant to sreinafter referred to in this Part 1-17

rection of an approving authority s'the Executive Order."

the Act:

(a) Contractual adjustments & Subpart 1-17.1—General

amendments without consideratio

rection of mistakes, and formaliza a) The Act empowers the President

informal commitments (sees - suthorize departments and agencies

1-17.2). sercising functions in connection with

(b) Making advance payments

cedures for making such paymer sets or into amendments or modifica- set forth in Subpart 1-30.4). was of contracts and to make advance (c) Exercise of "residual p Syments

, without regard to other pro- which refers to all other authorit: some of law relating to the making, the Act (see Subpart 1-17.3). natormance, amendment, or modifica

and contracts, whenever he deems $ 1-17.104 Definitions. sat such action would facilitate the

As used in this Part 1-17, the fo. terms have the meanings set fort!

(a) “Approving authority" me:

official or a contract adjustment The Executive Order authorizes der the Act. This authority

having authority to approve actia

Sec. 1-17.402 Final records. 1-17.403 Sample format for preliminary

and final records. Subpart 1-17.5—Act and Executive Order 1-17.500 Scope of subpart. 1-17.501 The Act of August 28, 1958

(Public Law 85–804; 50 U.S.C.

1431-1435). 1-17.502 Executive Order No. 10789 of No

vember 14, 1958. AUTHORITY: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(C).

SOURCE: 29 FR 10348, July 24, 1964, unless otherwise noted. § 1-17.000 Scope of part.

As distinguished from the normal principles and procedures set forth in the other parts of the FPR, this part establishes uniform regulations for entering into and amending or modifying contracts to facilitate the national defense under the extraordinary, emergency authority granted by the Act of August 28, 1958, Public Law 85–804 (50 U.S.C. 1431-1435), set forth in § 1-17.501, hereinafter referred to in this Part 1-17 as "the Act," and Executive Order No. 10789 of November 14, 1958 (3 CFR, 1954– 1958 Comp., pp. 426-428), as amended by Executive Order No. 11051 of September 27, 1962 (3 CFR, 1959–1963 Comp., pp. 635-644), set forth in § 1-17.502, hereinafter referred to in this Part 1-17 as “the Executive Order."

Subpart 1-17.1-General 8 1-17.101 Authority.

(a) The Act empowers the President to authorize departments and agencies exercising functions in connection with the national defense to enter into contracts or into amendments or modifications of contracts and to make advance payments, without regard to other provisions of law relating to the making, performance, amendment, or modification of contracts, whenever he deems that such action would facilitate the national defense. (Similar authority was formerly contained in Title II of the First War Powers Act, 1941, which, as extended, expired June 30, 1958.)

(b) The Executive Order authorizes the head of each agency named therein to delegate the authority conferred upon him thereby to any other officials within his agency, and to confer on any such oficials the power to make further dele

gations of such authority within their respective organizations. However, mder the Act and the Executive Order, authority to approve actions obligating the United States in an amount in excess of $50,000 may not be delegated below the secretarial level, as defined in § 1-17.104 (b). fl-17.102 General policy.

(a) Authority conferred by the Act shall be delegated in a manner which will best serve the interests of the national defense and, at the same time, retain control over the exercise of the authority at a level within the agency which is high enough to insure uniformity of action.

(b) The authority conferred by the Act shall not be utilized so as to encourage carelessness and laxity on the part of persons engaged in the defense effort nor be relied upon where other adequate legal authority exists.

(c) The actions authorized under the Act shall be processed as expeditiously as practicable consistent with the care, restraint, and exercise of sound judgment, appropriate to such extraordinary authority. § 1-17.103 Types of actions.

The following three types of actions may be taken by or pursuant to the di. rection of an approving authority under the Act:

(a) Contractual adjustments such as amendments without consideration, correction of mistakes, and formalization of informal commitments (see Subpart 1-17.2).

(b) Making advance payments (procedures for making such payments are set forth in Subpart 1-30.4).

(c) Exercise of "residual powers," which refers to all other authority under the Act (see Subpart 1-17.3). f 1-17.104 Definitions

As used in this part 1-17, the following terms have the meanings set forth:

(a) “Approving authority" means an official or a contract adjustment board having authority to approve actions under the Act. This authority is die tinguished from authority to take appropriate contractual action pursuant to such approval.

(b) "Secretarial level" means an omcial at or above the level of an assistant

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in $81-17.204–2 through 1-172044 Arrect mistakes with the least possible
Even if all of the factors contained

by normally will facilitate the
any of the examples are present, other tonal defense by expediting the pro-
factors or considerations in a particular rarement program and by giving con-
case may warrant denial of the request actors proper assurance that such mis-
authority determines that the circum-11-17.2044 Informal commitments.
loss under a defense contract, however tract: for example, where any per-
caused, will impair the productive ability pursuant to written or oral instruc-
profits) on a defense contract as a result
of Government action, the character d

determine whether any adjustment 11-17.205 Limitations upon exercise of

head of an agency or his deputy, and a quests for contractual adjustment under

contract may be adjusted if fairness so (2) The making of any cont contract adjustment board.

the Act.

requires; thus, where such Government violation of existing law relating (c) "Defense contract" means an

S$ 1-17.201-1-17.203 [Reserved] ection, although not creating any 11 tation of profit or fees; agreement of any kind (whether in the

ability on its part, increases the cost of (3) The negotiation of purch form of a letter of Intent, purchase order,

§ 1-17.204 Standards for deciding performance, considerations of fairness or contracts for property or serv or otherwise) for property or services

may make appropriate some adjustment quired by law to be procured by necessary, appropriate, or convenient for

§ 1-17.204–1 General.

of the contract.

advertising and competitive bido the national defense. The mere fact that losses occur under $1-17.204-3 Mistakes.

(4) The waiver of any bid, p § 1-17.105 Reports. a defense contract is not, by itself, a suf

performance or other bond requ

(A) A defense contract may be law. (a) The Act and the Executive Order ficient basis for the exercise of the au

(b) No contracts, amendme thority conferred by the Act. Whether. mended or modified to correct or mitiprovide that each agency shall, by

modifications shall be entered int in a particular case, appropriate action gate the effect of a mistake. The folMarch 15 of each year, submit to the

authority of the Act: Congress & report of all actions taken such as amendment without considere being are examples:

(1) A mistake or ambiguity which (1) Unless a finding is made

tion, correction of a mistake or ambigo within the agency under the authority of

action will facilitate the uity in a contract, or formalization consists of the failure to express, or to the Act during the preceding calendar

defense; an informal commitment, will facilltak enpress clearly, in a written contract the year.

(2) Unless other legal authorit the national defense is a matter of sound areement as both parties understood it. (b) The report shall show the infor

(2) A mistake on the part of the con in the agency concerned is deem mation set forth in (1) below for all ac judgment to be made on the basis of all

the facts of such case. Although it is
endor which is so obvlous that it was

lacking or inadequate; and tions approved, and in (2) below for all

t should have been apparent to the actions denied. In addition, for each viously impossible to predict or enumer

contracting officer.

(3) Except within the limits approved action which involves actual or ate all the types of cases with respect

131 A mutual mistake as to a ma

amounts appropriated and the st potential cost to the Government in ex to which action may be appropriate, es

contract authorization. cess of $50,000, the report shall show: amples of certain cases or types of rose

(c) No contract shall be ame name of contractor, actual cost or esti

where action may be proper are set forth

Amending defense contracts to

modified: mated potential cost, description of prop

(1) Unless the request there erty or services involved, and a statement

been filed before all obligations of the circumstances justifying the

ing final payment) under the action.

have been discharged; and (1) For actions approved: (1) The total number of actions, total These examples are not intended to er:

under section 302(C) (14) of the dollar amount requested, and total dollar clude other cases where an approving

Property and Administrative amount approved; and

stances warrant action. (11) By type of action (amendments without consideration, correction of mis

§ 1-17.204–2 Amendments without com takes, formalization of informal commit sideration. ments, and such other actions as appropriate), the number of actions, dollar amount requested, and dollar amount approved.

(2) For actions denied: (1) The total number of actions and total dollar amount requested; and

(11) By type of action, the number of actions and dollar amount requested.

(c) The report should omit any information which is classified "Confidential" or higher.

(d) A report is not required if no action (either approving or denying relief) was taken under the authority during the year. Subpart 1-17.2—Requests for

Contractual Adjustment & 1-17.200 Scope of subpart.

This subpart sets forth standards and procedures for the disposition of re

(2) If the contract was ne

Act of 1949 (41 U.S.C. 252(c) Informal commitments may be for under 10 U.S.C. 2304(a) (15), to malized under certain circumstances to the contract price to an amoun kamit payment to persons who have than the lowest rejected bid of skan action without a formal defense sponsible bidder.

(d) No informal commitmer

be formalized: fans from an official of an agency and (1) Unless a request for paync

piring in good faith upon the apparent been filed within six months a authority of the official to issue such ranging to furnish or furnishing structions, has arranged to furnish or or services in reliance upon the sa furnished property or services to the

ment; and tancy or to a defense contractor or

(2) Unless it is found that risontractor without formal contrac

time the commitment was made coverage for such property or serv Impracticable to use normal proc

Formalization of commitments oder such circumstances normally will

procedures. bilitate the national defense by as

§ 1-17.205–2 Additional limitat turing such persons that they will be

low secretarial level. teated fairly and paid expeditiously.

The exercise of authority by below the secretarial level shall Ject to the following

ad limitations:

(a) The action shall not deal

directly affect any matter whi The use of the cost-plus-a-per- been submitted to the General A Slape-of-cost system of contracting; ing Office.

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contract may be adjusted if fairness so requires; thus, where such Government action, although not creating any Uability on its part, increases the cost of performance, considerations of fairness may make appropriate some adjustment of the contract. § 1-17.204–3 Mistakes. (a) A defense contract may

be amended or modified to correct or mitigate the effect of a mistake. The following are examples:

(1) A mistake or ambiguity which consists of the failure to express, or to express clearly, in a written contract the agreement as both parties understood it.

(2) A mistake on the part of the contractor which is so obvious that it was or should have been apparent to the contracting officer.

131 A mutual mistake as to a material fact.

b) Amending defense contracts to correct mistakes with the least possible delay normally will facilitate the national defense by expediting the procurement program and by giving contractors proper assurance that such mistakes will be corrected expeditiously and fairly. 31-17.204–4 Informal commitments.

Informal commitments may be formalized under certain circumstances to permit payment to persons who have taken action without a formal defense contract: for example, where any person, pursuant to written or oral instructions from an official of an agency and relying in good faith upon the apparent authority of the official to issue such instructions, has arranged to furnish or has furnished property or services to the agency or to a defense contractor or subcontractor without formal contractual coverage for such property or services. Formalization of commitments under such circumstances normally will facilitate the national defense by assuring such persons that they will be treated fairly and paid expeditiously. 8 1-17.205 Limitations upon exercise of

Authority. $ 1-17.205–) General limitations.

(a) The Act is not authority for:

(1) The use of the cost-plus-a-percentage-of-cost system of contracting;

(2) The making of any contract in violation of existing law relating to limitation of profit or fees;

(3) The negotiation of purchases of or contracts for property or services required by law to be procured by formal advertising and competitive bidding; or

(4) The waiver of any bid, payment, performance or other bond required by law.

(b) No contracts, amendments, or modifications shall be entered into under authority of the Act:

(1) Unless a finding is made that the action will facilitate the national defense;

(2) Unless other legal authority within the agency concerned is deemed to be lacking or inadequate; and

(3) Except within the limits of the amounts appropriated and the statutory contract authorization.

(c) No contract shall be amended or modified:

(1) Unless the request therefor has been filed before all obligations (including final payment) under the contract have been discharged; and

(2) If the contract was negotiated under section 302(C) (14) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 252(c) (14)) or under 10 U.S.C. 2304(a) (15), to increase the contract price to an amount higher than the lowest rejected bid of any responsible bidder.

(d) No informal commitment shall be formalized:

(1) Unless a request for payment has been filed within six months after arranging to furnish or furnishing property or services in reliance upon the commitment; and

(2) Unless it is found that at the time the commitment was made it was Impracticable to use normal procurement procedures. 81-17.205–2 Additional limitations be

low secretarial level. The exercise of authority by otcials below the secretarial level shall be subject the following additional Limitations:

(a) The action shall not deal with or directly affect any matter which has been submitted to the General Accounting Office.

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