(2) A statement and evidence of the contractor's present estimate of total costs under the contracts involved if enabled to complete them, broken down as between costs accrued to date of request and run-out costs, and as between costs for which the contractor has made payment and those for which he is indebted at the time of the request;

(3) A statement and evidence of the contractor's estimate of the final contract price of the contracts involved giving effect to all escalation, changes, extras, and the like, known or contemplated by the contractor;

(4) A statement of any claims known or contemplated by the contractor against the Government involving the contracts in question, other than those stated in response to § 1-17.207-4(b) (3);

(5) An estimate of the contractor's total profit or loss under the contracts involved if enabled to complete at the estimated final contract price (see § 1-17.207-4(b)(3)), broken down between profit or loss to date and run-out profit or loss;

(6) An estimate of the contractor's total profits or losses from other Government business, and all other sources, during the period from the date of the first contract involved to the estimated date of completion of all the contracts involved:

(7) A statement of the amount of any tax refunds and an estimate of those anticipated during or for the period from the date of the first contract involved through the estimated completion date of all the contracts involved;

(8) A statement in detail as to efforts the contractor has made to obtain funds from commercial sources to enable him to complete performance of the contracts Involved;

(9) A statement of the minimum amount necessary as an amendment without consideration to enable the contractor to complete performance of the contracts involved, and the detailed basis for that amount;

(10) An estimate of the time required to complete each contract if the request is granted;

(11) A statement of the factors which have caused the loss under the contracts involved;

(12) A statement as to the course of events anticipated if the request is denied:

(13) Balance sheets, preferably certified by a certified public accountant (1) as of the end of the contractor's fiscal year first preceding the date of the first contract, (ii) as of the end of each subsequent fiscal year, (iii) as of the date of the request, and (iv) projected as of the date of completion of all the contracts involved assuming the contractor is enabled to complete the contracts at the final prices estimated pursuant to § 1-17.207-4(b) (3), together with income statements for annual periods subsequent to the date of the first balance sheet. Balance sheets and income statements should be both consolidated and by affiliates, and should show all transactions between the contractor and his affiliates, stockholders, and partners, including loans to the contractor guaranteed by any stockholder or partner; and

(14) A list of all salaries, bonuses, and all other forms of compensation of the principal officers or partners and of all dividends and other withdrawals, and all payments to stockholders in any form since the date of the first contract involved.

(c) Amendments without consideration under § 1-17.204-2(b). In addition to the facts and evidence listed in § 1-17.207-4(a), where a request involves possible amendment without consideration because of Government action, and essentiality to the national defense is not a factor, the contractor shall be asked to furnish such of the following as is deemed appropriate to the request:

(1) A clear statement of the precise Government action which the contractor considers caused a loss under the contract, with evidence to support each essential fact;

(2) A statement and evidence of the contractor's original breakdown of estimated costs, including contingency allowances, and profit;

(3) The estimated total loss suffered under the contract, with detailed supporting analysis; and

(4) The estimated loss resulting from the Government action, with detailed supporting analysis.

(d) Correction of mistakes under § 1-17.204-3. In addition to the facts and evidence listed in § 1-17.207-4(a), where a request involves possible correction of a mistake, the contractor shall be asked to furnish such of the following as is deemed appropriate to the request:

(1) A statement and evidence of the precise mistake or error that was made, the ambiguity that exists, or the misunderstanding that arose, showing of what it consisted and how it occurred, and the intention of the parties;

(2) A statement explaining when the mistake was discovered, when notice of mistake was given to the contracting officer, and whether given before completion of work under, or the effective date of termination of, the contract;

(3) An estimate of loss or profit under the contract with detailed supporting analysis; and

(4) An estimate of the increase in cost to the Government resulting from the adjustment requested, with detailed supporting analysis.

(e) Formalization of informal commitments under § 1-17.204-4. In addition to the facts and evidence listed in § 1-17.207-4(a), where a request involves possible formalization of an informal commitment, the contractor shall be asked to furnish such of the following as is deemed appropriate to the request: (1) Copies of any written instructions or assurances, or a statement under oath as to any oral instructions or assurances made to the contractor, with identification of the Government official making such statement;

(2) A statement as to when the property or services were furnished or arranged to be furnished, and to whom;

(3) Evidence that the contractor relied upon the instructions or assurances, with a full description of the circumstances which led him so to rely, and that the contractor intended, at the time of performing the work, to be compensated directly for it by the Government and did not anticipate recovery of the costs in some other way;

(4) A cost breakdown supporting the amount claimed as a fair compensation for the work performed; and

(5) A statement and evidence of why it was impracticable to provide for the work performed in an appropriate contractual instrument.

§ 1-17.208 Processing cases.

All cases shall be processed in accordance with the general policy set forth in § 1-17.102(c).

§ 1-17.208-1 Investigation.

A thorough investigation shall be made of all facts and issues relevant to each case. Facts and evidence shall be obtained from contractor and Government personnel, and shall include signed statements of material facts within the knowledge of individuals where documentary evidence is lacking, and audits where considered necessary to establish financial or cost facts.

§ 1-17.208-2 Interagency coordination.

Where a case involves matters of interest to more than one agency of the Government, such agencies should maintain liaison with each other for the purpose of determining whether joint action may be taken under the circumstances. § 1-17.208-3 Disposition.

(a) In each case, the approving authority (if a contract adjustment board, the Chairman), whether approving or denying the request, shall sign a Memorandum of Decision which shall be dated and shall contain the following:

(1) The name and address of the contractor, the contract identification, and the nature of the request;

(2) The decision reached and the actual cost or estimated potential cost, if any, of the decision;

(3) A concise description of the property or services involved;

(4) A statement of the circumstances justifying the decision; and

(5) If some adjustment action is approved, a statement in substantially the following form: "I find that the action authorized herein will facilitate the national defense."

(b) Where the Memorandum of Decision contains information which is classified "Confidential" or higher, such information shall be identified in the Memorandum. In lieu of including

The following shall be retained in the agency files with respect to each request processed:

(a) The Memorandum of Decision required in § 1-17.208-3;

(b) The contractor's request;

(c) Memoranda, correspondence, affidavits, statements, and all other documents containing information acquired In connection with the request;

(d) A copy of the contractual document implementing any approved contractual action; and

(e) The final record prepared in accordance with § 1-17.402.

Subpart 1-17.3-Residual Powers § 1-17.300 Scope of subpart.

This subpart prescribes the standards and procedures for the exericse of residual powers under the Act. The term "residual powers" as used in this subpart Includes all the authority under the Act except that which is covered by Subpart 1-17.2 and the authority to make advance payments.

§ 1-17.301 Statutory limitation on delegation of authority.

Authority to approve actions obligating the United States in an amount in excess of $50,000 under the residual powers of the Act shall not be delegated below the secretarial level.

§ 1-17.302 Standards for using residual powers.

Subject to the limitations contained in 1-17.205-1, the residual powers may be used in accordance with the policies set forth in § 1-17.102 where such use is deemed necessary and appropriate. § 1-17.303 Procedures.

(a) With respect to each proposal for the exercise of residual powers, the approving authority shall sign a memorandum containing information substantially as set forth in § 1-17.208-3.

(b) Every contract entered into or amended or modified under the residual

A copy of each memorandum required by 1-17.303 (a) shall be retained in the agency files.

Subpart 1-17.4-Records of Requests and Dispositions

§ 1-17.400 Scope of subpart.

In order that adequate records of actions taken pursuant to the Act may be maintained, § 1-17.207-3 requires the preparation of a preliminary record when each request is filed for any adjustment under the standards set forth in § 1-17.204, and § 1-17.208-4 requires the preparation of a final record indicating the disposition of the request. This subpart describes in detail the information which should be included in these records. A suggested format for the records is shown in § 1-17.403. It is designed so that the information required for the preliminary and final record with respect to each request may be combined on the same form. § 1-17.401

Preliminary records.

Each preliminary record prepared pursuant to § 1-17.207-3 should contain the following information:

(a) Type of record. The fact that the record is a preliminary record should be indicated.

(b) Date of contractor's request. The date on the face of the contractor's request for adjustment should be inserted.

(c) Date received by Government The date the request for adjustment is received in any Government office to which the contractor may properly submit his request should be inserted.

(d) Name and address of contractor The full and correct name and address of the contractor filing the request should be inserted. If the contractor is a small business, this fact should be in. dicated.

(e) Name and address of contractor's representative, if any. If a particular named person (employee, attorney, etc.) Is the point of contact with the contractor, his full name and address should be inserted.

(f) Cognizant contracting officer or office. The contracting officer administering the contract for which an adjustment was requested or, if none, the contracting officer or office cognizant of the request should be inserted.

(g) Procuring activity. The name of the procuring activity with jurisdiction over the contracting officer or office referred to in (f) above should be inserted.

(h) Property or service involved. A brief description of the item being procured or services being rendered should be inserted.

(1) Extent of performance as of date of request. A brief indication, as of the date of the request, of the degree of completion of the contract should be inserted; for example, 50 percent completed, or performance not yet begun. If work is completed, indicate date of completion and whether final payment has been made.

(j) Contract number and date. The identifying numbers and dates of the contracts for which an adjustment is requested should be inserted. If there is no contract, then the word "None" should be inserted. If the question arises under a letter of intent, then that fact and the date of such letter should be inserted.

(k) Advertised or negotiated. Whether the contract was entered into pursuant to advertising or negotiation should be indicated. If negotiated, the specific authority should be indicated, e.g., "Neg. 302(c) (14) of FPAS Act" (Federal Property and Administrative Services Act of 1949).

(1) Type of contract. The type of contract involved (see Subpart 1-3.4) should be inserted, e.g., "FFP" (firm fixed price), "CPFF" (cost-plus-a-fixedfee), or "T&M" (time and materials).

(m) Category of case. Whether the request involves an amendment without consideration, a mistake, or an informal commitment should be indicated. If the case involves two or more categories, each should be indicated; however, the most significant category involved should be listed first.

(n) Amount or description of request. If the request is expressed in dollars, as a change in price, then that fact should be inserted as follows: "$5,250 increase" or "$5,250 decrease." If the request

seeks an adjustment which cannot be expressed in monetary terms, then some brief description of it should be inserted, such as "Cancellation" or "Modification of Terms." The fact that an adjustment is not easily expressed in dollar terms should not deter an estimate if such an estimate is made by the contractor in his request.

(0) Date this record signed. The date on which the record is signed should be inserted.

(p) Signature. The record should be signed by an authorized representative of the reporting authority.

§ 1-17.402 Final records.

Each final record prepared pursuant to § 1-17.208-4 should contain the information listed in (b) through (p) of § 1-17.401 and, in addition, should contain the following information:

(a) Type of record. The fact that the record is a final record should be indicated.

(b) Action below secretarial level. The disposition of the case, the office which took action, and the date thereof should be inserted. The disposition should be indicated as: "withdrawn," "denied," "approved," or "forwarded." If the request was approved in whole or in part, the dollar amount or nature of the action should be indicated in a manner similar to that described in § 1-17.401 (n). Where the request is denied or approved, the date should correspond to the date of the Memorandum of Decision issued in accordance with § 1-17.208-3.

(c) Action at secretarial level. The disposition of the case at secretarial level and the date thereof should be indicated in a manner similar to that described in § 1-17.402(b).

(d) Implementation and date. The nature of the contractual document or correspondence which implements the decision of the approving authority should be indicated as follows: "amendment," "new contract," or "letter of denial."

§ 1-17.403 Sample format for preliminary and final records.

The following is a suggested format for the preliminary and final records described in §§ 1-17.401 and 1-17.402:

Subpart 1-17.5-Act and Executive Order

§ 1-17.500 Scope of subpart.

This subpart sets forth in full the Act and the Executive Order.

§ 1-17.501 The Act of August 28, 1958 (Public Law 85-804; 50 U.S.C. 1431-1435).

The Act is as follows:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President may authorize any department or agency of the Government which exercises functions in connection with the national

defense, acting in accordance with regulations prescribed by the President for the protection of the Government, to enter into contracts or into amendments or modifications of contracts heretofore or hereafter made and to make advance payments thereon, 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. The authority conferred by this section shall not be utilized to obligate the United States in an amount in excess of $50,000 without approval by an official at or above the level of an Assistant Secretary or his Deputy, or an assistant head or his deputy, of such department or agency, or by a Contract Adjustment Board established therein.