in added costs to the contractor, the costs will be considered allowable under the supply contract as necessary and incidental to the performance of the contract. These arrangements require approval of the administrative contracting officer (ACO), authority for which is contained in Part 15 of this title. If it appears to be in the best interests of the government to permit the contractor to purchase transportable housing, the recommendation of the contractor with concurrence or nonconcurrence of the SATAF Commander and cognizant ACO should be submitted to the BSD System Program Directorate for final determination and contractual coverage and/or funding as appropriate.

(b) To minimize costs, to assure best possible personnel support for site activation, and to reduce impact on local communities, the ACO, in conjunction with the SATAF Commander, should take into consideration all factors prior to authorizing the contractor to enter into any special arrangement. It is expected that, to the extent possible, contractor personnel who will be at the site less than one year will be placed in a TDY status in lieu of relocation. By authorizing TDY expense, it may be possible to eliminate the cost of relocation, movement or storage of household effects, and possible loss under the special arrangements. Reimbursement for reasonable per diem or incentive allowances to personnel who agree to an assignment in a bachelor status may be more advantageous to the government. In such cases, contractors will be urged to encourage their employees to go unaccompanied by their families and to make such reasonable arrangements as are necessary to attract employees in an unaccompanied status. Where bachelor arrangements are not possible the special inducements made in the form of "offsite" premiums, TDY and per diem rates, and other subsistence or housing allowances to other employees should be reviewed to determine whether any reductions should be made as the result of special housing arrangements. Any special arrangement will be implemented only after the integrating or airframe contractor in conjunction with appropriate AF personnel (SATAF, AFPR) has thoroughly explored the local situation and developed a proposal as to the most feasible solution. It is important that

supplementary housing arrangements do not result in a competitive situation with reasonably available community housing. The primary source of housing must be considered to be the local community. Only after this source has been utilized to the fullest extent will special arrangements be implemented to assist in determining impact of programmed AF housing construction on availability of local community support. SATAF will obtain reports, RCS: AF-Z11 and RCS: AF-Z27, on family housing from the host base and furnish pertinent information to the integrating contractor. If the arrangement considered by the SATAF Commander and ACO to be in the best interest of the Government exceeds the authority contained in current AF directives, the case will be submitted to the Western Contract Management Region for appropriate action with an information copy to BSD (BSSIF).

(c) The integrating or airframe contractor will consolidate associate contractor housing requirements with their own to preclude the possibility of one contractor competing with another and to assure maximum utilization of such housing, thus, holding costs to a minimum. In addition, family housing requirements for SATAF members, including Corps of Engineer personnel, will be included. The SATAF Commander's estimate of these requirements will be furnished the contractor through the appropriate ACO with the request that the contractor include such requirements in his planning.

(d) Upon receipt of the contractor's request for approval of the rental rate, the ACO will make a determination of the rental rate to be charged for both contractor and SATAF personnel (military and civilian) and advise the contractor of the approved rate. In general, such rates will be established on the basis of comparative rates in the nearest non-resort, non-inflated local community. Consideration may be given to recommendations secured from the base housing officer or the local Federal Housing Administrator, and such other factors as may be necessary to assure the establishment of a fair and reasonable rate. Once the ACO has established the rental rate, that same rate will be applicable to all SATAF and contractor personnel.

(e) Family housing will be furnished SATAF personnel according to the following procedures:

(1) The SATAF Commander will approve the requirement for SATAF personnel housing on either an individual or group basis and provide proper documentation for the contract files to support action taken.

(2) The ACO will notify the integrating or assembly and checkout contractor to include the approved SATAF requirements in the overall family housing requirement.

(3) SATAF personnel will be given consideration for housing on the same priority basis as used for the contractor's employees under comparable ground rules.

(f) If it is advantageous to locate temporary housing on AF owned land due to the availability of utilities or other reasons, the SATAF Commander will enter into a joint use agreement with

the Base covering the service to be supplied. When the need no longer exists within any particular program, disposition instructions will be supplied by BSD.

(g) If unusual problems arise which cannot be resolved at local level within the guidelines contained herein the SATAF Commander will notify BSD (BSSIF). Such notice must contain enough detailed information together with recommendations to permit resolution of the problem.

(h) Base housing, if available, and not required for use of attached military and civil service personnel, may be authorized by the base commander for use of contractor personnel. Such use will be arranged directly between the base housing office and the contractor and tenant including payment of rent.

[27 F.R. 12217, Dec. 11, 1962, as amended at 29 F.R. 8169, June 27, 1964]