(e) Formalization of Informal Commitments. In addition to the facts and evidence listed in paragraph (a) above, 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: (i) 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 officer or official making such statement; (ii) a statement as to when the property or services were furnished or ar- (iii) evidence that the contractor relied upon the instructions or as- (v) a statement and evidence of why it was impracticable to provide for 17-208 Processing Cases. 17-208.1 Investigation. Officers and officials listed in 17-203(b) shall be responsible in all cases for making a thorough investigation 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. The investigation shall establish (i) the facts essential to meeting the standards for deciding the particular case and (ii) the essential facts as to who has authority to approve the request. 17-208.2 Disposition Below Secretarial Level. (a) Disposition. In each case where the request for relief is denied or approved finally below Secretarial level (see 17–203), the approving authority shall sign a Memorandum of Decision, whether approving or denying the request, which memorandum shall be dated and shall contain the following: (i) the name and address of the contractor, the contract identification, and the nature of the request; (ii) the decision reached and the actual cost or estimated potential cost, if any, of the decision; (iii) a concise description of the property or services involved; (iv) a statement of the circumstances justifying the decision; (v) 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"; and (vi) identification of any of the foregoing information which is classified "Confidential" or higher. (b) Records. Each of the following documents shall be submitted to the addresses set forth in 17-207.3 within 30 days after the close of the month during which it is executed: (i) two copies of the Memorandum of Decision; (ii) one copy of the contractual document implementing any decision, approving contractual action; and (iii) one copy of a final record, as prescribed in Part 4 of this Section, prepared by the activity responsible for the case under 17-203. Item (ii) will not be submitted in the case of the Army. 17-208.3 Submission of Cases to the Contract Adjustment Board. (a) Statement to Board. Cases to be submitted for consideration of the cognizant Contract Adjustment Board shall be forwarded by means of a letter signed by the officer or official responsible for the case under 17-203. The letter shall state: (i) the nature of the case; (ii) the basis for the Board's authority to act under 17-202 and 17-203; (iv) the conclusions drawn from applying the standards for deciding (v) the disposition recommended, and, if contractual action is recommended, the opinion of the signer that such action will facilitate the national defense; and (vi) where the case involves a Military Assistance Program purchase within the scope of 6–704.1(ii) a recommendation as to the impracticability of inclusion of the Examination of Records by Comptroller General clause set forth in 7-104.15 (see 17-206(v) and 6–704). The letter shall enclose copies of the contractor's request, the evidentiary materials, and all indorsements, reports and comments of cognizant Government officials. The letter and enclosure shall be in duplicate. (b) Amendments Without Consideration Under 17-204.2(a). A letter to the Board recommending an amendment without consideration under the standards of 17-204.2(a), should, in addition to the requirements of paragraph (a) above, ordinarily cover, with supporting data as appropriate, the findings and conclusions with respect to all of the items set forth in 17-207.4(b) and, in addition, findings as to: (i) the contractor's performance record, including the quality of product, rate of production and promptness of deliveries; (ii) the importance to the Government, particularly to the operating forces, of the performance of the contract by contractor and the importance of the contractor to the national defense; (iii) forecast of future contracts with the contractor; and (iv) other available sources of supply for the supplies or services covered by the contract, and the time and cost of having contract performance completed by such other sources. (c) Forwarding to Boards. Cases to be submitted to the Boards shall be forwarded through the following channels. (i) In the Army and the Navy, normally, each case shall be sent from the Head of a Procuring Activity directly to the Board. (ii) In the Air Force, normally, each case shall be sent through the Deputy Chief of Staff, Systems and Logistics, Headquarters, USAF, ATTN: AFLGPM, and after review there, to the Board. (iii) In the Defense Supply Agency, each case shall be sent to Headquar- (iv) In the Defense Communications Agency, each case shall be sent to (vi) In the Defense Mapping Agency, each case shall be sent to 17-208.4 Processing by Contract Adjustment Boards. (a) Disposition. Upon receipt of cases, the Contract Adjustment Boards, each in accord with its own procedures, shall render decisions as expeditiously as practicable. The chairman shall sign a Memorandum of Decision disposing of the case, which shall be dated and shall contain the information required by 17–208.2(a) (i) through (v). The Memorandum of Decision shall omit any information classified “Confidential” or higher. The Board's decision will be communicated to the appropriate officer or official for implementing action. (b) Records. When the Board decisions are implemented, the documents listed in 17-208.2(b)(ii) and (iii) shall be prepared and submitted to the cognizant Board. The activity which forwarded the case to the Board shall be responsible for the preparation and submission of these documents. 17-208.5 Maintenance of Records. The records required by 17-207.3, 17-208.2(b), and 17-208.4(a) and (b) shall be maintained in the Army, Navy, and Air Force, by the respective Boards; and in the Defense Supply Agency, Defense Communications Agency, Defense Nuclear Agency, and the Defense Mapping Agency, by the respective Headquarters. 17-208.6 Interdepartmental Coordination. (a) General. Where a case involves matters of interest to more than one department or agency, any interested Military Department should maintain liaison with other Military Departments and other departments and agencies of the Government and take such joint action as may be proper under the circumstances, including holding joint meetings or hearings. (b) Cases Involving Funds of Other Military Departments. Requests for adjustment within any category, where the funds of other than the procuring Department may be required, shall not be approved by the procuring Department until advice is requested and received from the requiring Department that additional funds will be made available. The request for such advice shall disclose the following data: (i) contractor's name; (ii) MIPR number; (iii) contract number; (iv) amount of proposed relief; (v) brief description of the procurement; and (vi) accounting classification-fund citation. If such additional funds are made available, the action to be taken on a particular request, however, shall be solely the responsibility of the Department considering such request. (c) Amendments Without Consideration Involving Other Military Departments. Requests for amendments without consideration, where essentiality to the national defense is an issue and involves another Military Department, shall not be finally determined by one Department until advice on such issue is requested and received from the other Department. When such advice is received, the responsibility for taking the appropriate action, if any, shall be with the Department considering the request. Part 3-Residual Powers 17-300 Scope. This Part describes the delegations of authority, and the standards and procedures for the exercise of residual powers under the Act. The term “residual powers" as used in this Part includes all the authority under the Act except that which is covered by Part 2 hereof and the authority to make advance payments. 17-301 Delegation of Authority. Authority to take actions under the residual powers of the Act is vested in the Secretary of each Department and may be defined and delegated in writing by him within his Department; provided, however, that (i) authority to approve actions obligating the United States in an amount in excess of $50,000 shall not be delegated below the Secretarial level; (ii) authority to approve actions obligating $50,000 or less shall not be delegated below the Head of a Procuring Activity; and (iii) authority to indemnify against unusually hazardous or nuclear risks, including extension of such indemnification to subcontracts, shall be exercised only by the Secretary. Copies of all delegations shall be transmitted to the Assistant Secretary of Defense (Installations and Logistics) at the time of issuance. 17-302 Standards for Using Residual Powers. Subject to the limitations contained in 17-205.1, the residual powers may be used in accordance with the policies set forth in 17-102 when such use is deemed necessary and appropriate under all the circumstances. When granting authority to include an indemnification clause in a contract or subcontract, the Secretary may require the contractor so indemnified to provide and maintain financial protection of such type and in such amounts as the Secretary determines to be appropriate under the circumstances. In deciding whether to approve the use of an indemnification provision and in determining the amount of financial protection to be provided and maintained by the indemnified contractor, the Secretary shall take into account such factors as the availability, cost and terms of private insurance, self-insurance, other proof of financial responsibility, and workmen's compensation insurance. Such approval and determination, as required by the preceding two sentences, shall be final. 17-303 Procedures. 17-303.1 General Procedures. (a) All proposals for the exercise of residual powers shall be forwarded except as Departmental regulations may otherwise provide through normal channels within the Military Departments to the Assistant Secretary or other approving authority. (b) The approving authority shall sign a Memorandum of Approval containing the information set forth in 17-208.2(a). (c) Every contract entered into or amended or modified under the residual powers shall comply with the provisions of 17-206. 17-303.2 Special Procedures for Unusually Hazardous or Nuclear Risks. (a) Contractor requests for indemnification provisions in DoD contracts should be submitted to the cognizant contracting officer and shall include at least the following: (i) an identification of the procurement for which the indemnification provisions are requested; |