Each purchasing office shall prepare a consolidated DD Form 1057 covering all procurements effected by that office. The original and one copy of the completed form shall be forwarded to the Executive Director, Procurement and Production, DSA, as soon as possible, but to arrive not later than the 8th calendar day, after the close of the calendar month being reported. For procurement actions affected during the month of June only, reporting dates are extended 7 additional calendar days.

§ 1216.902-50 Memorandum record.

In order that complete data are available, each reporting office will show as a "Memorandum Record" on the reverse of the DD Form 1057 the following information:

PART I-DD FORM 350 REPORTS

Subpart C-Residual Powers 1217.301 Delegation of authority. 1217.304 Maintenance of records.

AUTHORITY: The provisions of this Part 1217 issued under R.S. 161, sec. 2(a), 72 Stat. 514, secs. 2202, 2301, 2314, 70A Stat. 120, 127, sec. 1, 76 Stat. 528; 5 U.S.C. 22, 171a(c), 10 U.S.C. 2202, 2301-2314; DoD Directive 5105.22, November 6, 1961.

SOURCE: The provisions of this Part 1217 appear at 28 F.R. 2665, Mar. 19, 1963, unless otherwise noted.

Subpart A-General [Reserved]

Subpart B--Requests for Contractual Adjustment

§ 1217.201 Authority of the director.

Authority vested in the Director under § 17.201 (b) of this title has been delegated to Counsel and Assistant Counsel (Contract Adjustment), DSA.

§ 1217.203 Authority of other officers and officials.

The authority in § 17.203 (a) (1) and (2) of this title has been delegated to heads of procuring activities. This authority may be redelegated only to a staff official reporting directly to the head of the procuring activity. Two copies of any redelegation shall be furnished the Counsel, DSA, one copy of which will be transmitted to the Assistant Secretary of Defense (I&L).

§ 1217.207-3 Records.

Records required by § 17.207-3 of this title shall be forwarded to the Counsel, DSA.

§ 1217.208-2 Disposition of cases.

The documents required by § 17.2082(b) of this title shall be forwarded to the Counsel, DSA. Where a procuring activity denies a request, a copy of the letter of explanation to the contractor shall be included.

§ 1217.208-3 Submission of cases to the contract adustment board.

Cases not within the approval authority of heads of procuring activities and any doubtful or unusual cases shall be forwarded to Counsel, DSA, for further processing. The forwarding letter shall contain the information and evidentiary materials outlined in § 17.208-3 of this title.

§ 1217.208-5

Maintenance of records. The records required by §§ 17.207-3, 17.208-2(b), and 17.208-4 (a) and (b) of this title shall be maintained by the Counsel, DSA.

§ 1217.208-6 Interdepartmental coordination.

The procuring activity responsible for processing a contractor's request for contractual adjustment shall be responsible for establishing liaison and joint action with other Military Departments and other departments and agencies of the Government, except that the Counsel, DSA, shall have such responsibility after any case is forwarded for further processing.

Subpart C-Residual Powers

§ 1217.301 Delegation of authority.

Authority vested in the Director under § 17.301 of this title has been delegated to Counsel, and Assistant Counsel (Contract Adjustment), DSA.

§ 1217.304 Maintenance of records.

Counsel, DSA, shall be responsible for maintaining the records required by § 17.303 (b) of this title.

the Government and do not place undue burden on the contractor, a request for approval to deviate from these instructions may be submitted, through channels, to the Executive Director, Procurement and Production, DSA.

B-103 Definitions.

B-103.14 Special tooling. Special tooling as defined in ASPR may further be classified for accounting purposes into three categories:

(a) Government-furnished. This category embraces special tooling to which the Government has title. Accounting will be in accordance with ASPR B-304.2, except where the contract or purchase order does not exceed $5,000 (DSPR B-301).

(b) End item. This category includes special tooling produced by the contractor as an end item under the contract. Initial accounting will be as specified for end items in appendix B, ASPR.

(c) Manufactured or acquired by contractor. Title to special tooling manufactured or acquired by a contractor under the provision of ASPR 13-504 is vested in the Government only if an option to acquire the special tooling is exercised at the time of contract completion or termination. Accounting and control of use prior to taking title to the property requires assurance that contractor observes ASPR 13-504 (h) "normal industrial practice" in his use of and accounting for the property. After title is assumed by the Government, accounting will be in accordance with ASPR B-304.2. PART II-GENERAL PROVISIONS

B-201 Duties and responsibilities of the contract administrator. Where a single property adminstrator, other than a DSA property administrator, has been designated under ASPR B-202b for all Department of Defense contracts at one contractor location, the contracting officer or his designated representative for property matters is responsible for the additional duties prescribed in DSPR B-202b.

B-202 Designation of property administrator. (a) Such designation shall be in accordance with ASPR B-202a. Except in unusual circumstances, neither the contracting officer nor the contract administrator will be assigned the additional duty of property administration. The assignment of this duty requires the approval of the Head of the Procuring Activity.

(b) In accordance with ASPR B-202b, DSA responsibility for interchange of property administration is assigned to Executive Director, Procurement and Production, DSA. Heads of Procuring Activities will assure that property administration interchange agreements are affected in accordance with the policies and procedures set forth in Appendix B, ASPR.

(1) When a property administration interchange agreement is executed wherein single department property administration is assigned to a military department other

than the DSA, contracting officers will look to the assigned property administrator for the discharge of all property administration functions (B-203) pertinent to DSA contracts. When the single department property administration function is assigned to a DSA property administrator, he will assume all property administration functions for the participating military departments.

(2) Contracting officers may designate an authorized representative for property matters to advise or represent them in the negotiation, execution and discharge of property administration agreements with the other military departments. His duties may include the following:

(a) Negotiation and execution of property administration agreements;

(b) Maintenance of the property section of the contract file, which will include a signed numbered copy of the property administration interchange agreement and all amendments thereto; extract of contract provisions relative to property and designation of property administrator; related correspondence; copies of correspondence or documentation reflecting proper disposition of all DSA property at contract completion or termination.

(c) Where more than one DSA purchasing office (either within or between procuring activities), along with one or more other military departments, has contracts at a single contractor location, a single DSA purchasing office will be designated to perform the single property administration function, the selected purchasing office will provide the property administrator.

(d) The provisions of B-202c are equally applicable to contractor locations where Government property is provided by more than one procuring activity under the DSA, but where other military departments are not involved.

(e) DSA personnel will follow the procedures set forth in Appendix B, ASPR and DSPR in administering property under a property administration interchange agreement.

B-203 Duties and responsibilities of the property administrator (ASPR B-203b). DSA property administrators under property administration interchange agreements are responsible for providing the departments concerned with the management data, documentation, and other information required for compliance with both ASPR and departmental procedures. In order to provide this information with the least impact on the contractor's accounting system, departmental requirements will be obtained, analyzed and summarized at the earliest possible date after execution of the interchange agreement and prior to survey of the contractor's accounting system for approval under ASPR B-203b. One of the objectives of the interchange program is to relieve contractors of the need to change their accounting systems to accommodate varying requirements of the military departments and procuring ac

tivities. This objective will be accomplished by the single department property administrator presenting, to the maximum extent possible, all such requirements at the initial accounting conference with the contractor prior to approval of the contractor's accounting system. DSA property administrators will cooperate fully in meeting the needs of the contracting officers of other military departments.

B-205 Sources from which Government property may be furnished or acquired (B-205).

B-205.1 Military installations or other Contractor's plants (ASPR B-205.1). (a) Government property in the form of new facility construction may be acquired by a producing contractor directly from the construction contractor.

(b) If property is received at a contractor's plant on any basis except a requisition or other proper approval of the contracting officer or property administrator, the case will be promptly reported to the Head of the Procuring Activity concerned.

B-205.2 Direct purchase by the contractor (B-250.2). Direct purchases by the contractor shall be subject to a determination by the contract administrator that the items and quantities are allocable to the contract involved and are reasonably necessary. For purposes of property control, within the scope of these instructions, it shall be considered that property purchased by a contractor, for which reimbursement is to be requested, becomes Government property upon its receipt by the contractor. Purchases of material by the contractor for rehabilitation of his plant, at cost, and used immediately will not be subject to the provisions of these instructions. Any such materials for which the contractor is reimbursed for stock purposes and later issue, must be accounted for under the provisions of these instructions.

PART III-RECORDS TO BE MAINTAINED B-301 General. (a) In order to perform work satisfactorily under a Government contract, a contractor must maintain some form of control records for all Government property, whether such property is furnished to or acquired by the contractor for the account of the Government. It is the policy of the DSA to designate and use such records as the official contract records and not to maintain duplicate records other than the property control records specified in B-303.1 (c) and B-304. Exceptions to this policy may be necessary (1) on small dollar value contracts of short duration, (ii) on the contracts where few items of property are furnished to or acquired by the contractor, or (iii) where the administrative expense of maintaining Government personnel at the contractor's plant or providing frequent official visits to the plant would exceed the cost of maintaining records at the purchasing office administering the contract. In such cases, and where for other cogent reasons it would not be in the best interests

of the Government for the contractor to maintain the official records, a determination will be made that the official records will be maintained by the Government. This determination will be made in writing in accordance with b below and shall be made a part of the property section of the contract file. The determination will take into consideration the findings and recommendations of the property administrator. The determination may also be considered as an adequate basis for determining that there would be no advantage accruing to the Government or to the contractor through execution of a property administration interchange agreement.

(b) Exceptions to the policy of using the contractor's Government property control records as the official contract records may be authorized in accordance with the following:

(1) Heads of procuring activities may: (a) Authorize exceptions to specific contracts, specific invitations for bids, or specific requests for proposals, with power of delegation to chiefs of purchasing offices without authority of further redelegation.

(b) Authorize class or group exceptions for short-term contracts, or for contracts where only a few items of Government property are to be provided. This authority may be delegated to one individual by position title without authority of further redelegation. Class or group exceptions will be authorized pursuant to a written determination which shall include justification for the exception.

(2) When exceptions are authorized in accordance with (1) (a) or (b) above, the contracts involved will be modified as follows:

(a) Add the following to the GovernmentFurnished Property/Government Property Clause:

Notwithstanding the provisions of ( )* above, the Government will maintain the official control records for Government Property provided pursuant to this clause and the Contractor is not required to maintain property control records for such property in accordance with the requirements of the "Manual for Control of Government Property in Possession of Contractors."

(b) Add the following to the Alterations in Contract Clause:

Subclause ()*, modifying subclause ( )* has been added to the GovernmentFurnished Property/Government Property Clause.

(c) Accounting for identical items of plant equipment valued at $500 or less on individual stock record cards or historical record forms in accordance with ASPR B-304.3 is not required. Individual item accounting is not required for identical items of furniture, office, medical, and cafeteria equipment, regardless of price.

B-301.1 Accounting of items bearing registration numbers. Individual item accounting is required for those items which

are included in a standard departmental registration numbering system, regardless of price.

B-301.2 Exceptions. (a) Property shipped out for repairs may be accounted for as suspense items in the Military Property Account from which shipped, provided that (i) no parts or material is furnished and (ii) no significant scrap will result from the repair. Accounting for property under appendix B, ASPR, is not required of contractors for property shipped out for repair.

(b) (1) Parts or material furnished to a contractor on a contract (other than time and materials contracts) will be considered as expended at the time of shipment from military accounts, provided such shipments are made only on the basis of specific job requirements. Shipping documents will be used as credit vouchers to the military accounts and will show the name of the contract administrator and the contract number in the consignee space. Copies of such documents will be furnished the contract administrator. Determination of the amount of any item to constitute a "specific job requirement" and what quantities should be furnished in any single shipment, shall be the responsibility of the contracting officer.

NOTE.-With reference to DSPR 301.2 a and b(1), small purchase procedures should be used in those cases where minor repairs are necessary, the costs of those repairs are within the monetary limits of small purchase procedure, and no Government liability clause is considered necessary by the contracting officer. Since the addition of contract clauses to the small purchase forms is not permissible, small purchases procedure will not be used where (because of the value of the equipment, or for any other reason) the contracting officer considers inclusion of the Government clause to be necessary to afford adequate protection to the Government.

(2) The contracting officer will establish such controls as he determines expedient. considering the value of such expended items, to insure the proper consumption of the articles furnished. Any residual quantities of Government-furnished parts and materials will be returned to stock. Any consequential scrap shall be handled under appropriate disposal procedures. The contracting officer shall maintain in the contract file such records of actions taken as is considered by him to be necessary to protect the interests of the Government.

(c) When a purchase order or contract does not exceed $5,000, jigs, patterns, fixtures, gages, and other manufacturing aids which are furnished to a contractor from stocks to aid in the performance of work may, at the option of the contracting officer, be accounted for as a suspense item in the Military Account from which shipped, provided that the total cost thereof does not exceed $1,000. Accounting for such property under Appendix B, ASPR is not required.

B-302 Pricing. The unit price of Government-furnished property shall be determined by the property administrator and furnished to the contractor. To determine realistic unit prices, the property administrator will utilize pricing guides and bulletins, and whenever necessary, secure the required pricing information from supplying depots or installations. Production equipment will reflect the acquisition cost computed as specified therein. In the event that unit prices are not available or obtainable after contact with all known sources of information, reasonable estimates will be employed.

B-304 Contractor's property control records. (a) Where the contractor's property control records and procedures have been approved by the DSA or by another military department for a particular type or types of contract (e.g., fixed price, CPFF), a statement from the contractor that he will continue to use the approved procedure will constitute approval of his system on new contracts of the same types. In the event that additional or successor contracts differ in type from those on which the initial approval was issued, a review of the contractor's records and procedures will be required as a basis for approval.

(b) In conducting the review of the contractor's accounting control records and procedures, the property administrator should prepare a program covering substantially the areas and the methods prescribed in DSPR B-340.50. The scope of the review should assure that all receipts of Government property are adequately documented, that they are properly recorded, and that use of the property is confined to the purpose for which it was procured. The program should also provide similar controls over disposition of Government property, but the magnitude, number and detail of test checks scheduled should be governed by type and size of the contractor's operation. As one of the criteria in his review, the property administrator should require that (i) all documents or type of documents affecting accountability run in one or more unbroken numbered series and (ii) all unused numbers are accounted for or that equivalent controls exist which will assure that all documents pertinent to a single contract are included in the property records of that contract.

B-304.50 Selective examinations of contractor records and property. (a) To discharge the duties of the property administrator effectively and satisfactorily as prescribed in ASPR B and C-202, the property administrator shall conduct or cause to be conducted periodic inspections of the physical condition of Government property in possession of the contractor to determine the adequacy of maintenance, repair, protection and shall preservation He report promptly, in writing, to the contracting officer any failure of the contractor to maintain, repair, protect, or preserve any of the Government property in the contractor's possession.

(b) The property administrator's program must include, on a continuing basis, the following:

(1) verification of the accuracy of the contractor's property records except where Government records have been designated as the official contract records;

(2) physical checks of representative portions of all classes of property connected with the contract; and

(3) review of the contractor's issue and consumption of materials.

(c) It is recognized that the methods for physical and accounting control of Government property may vary between contractors as well as between individual contracts; therefore, it is impractical to prescribe a detailed program for selective examinations of Government property to be followed without variation. These instructions are intended to represent the general rule for property administrators in establishing programs to meet the peculiarities of the contract or contracts to which he is assigned, based upon his study and clear understanding of the contract provisions.

(d) The selective checks made by the property administrator shall encompass representative amounts of all classes of Government property, to the extent deemed necessary, to determine the adequacy of the contractor's records and his controls over usage, consumption, and maintenance of production equipment and materials.

(1) The first step in checking the materials will be to determine that all quantities received have been appropriately recorded on the records maintained for such property, i.e., inventory records or receipt issue documents. A number of debit property documents will be selected from the contractor (or Government) control files and compared with the records to determine that appropriate recording has been effected. Emphasis will be placed on items of relatively high unit cost, large dollar value of consumption, and sensitive nature. Test inventories and test of credit postings of a sufficient number of items, will be made to establish the postings of a sufficient number of items, will be made to establish the credibility of the records and encourage accuracy on the part of the recordkeeping personnel.

as

(2) When special tooling is supplied to the contractor Government-furnished property, the selective check procedures for plant equipment set forth in (3) below will be used as a guide. In the case of special tooling manufactured by the contractor as an end item under the contract, or manufactured or acquired by the contractor under ASPR 13-504, the selective check will be only to assure that the contractor is following the provisions of the contract.

(3) The requirements of appendix B, ASPR, for accounting for individual items of plant equipment make possible relatively simple and exact procedure for selective check of this type of property.