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CHAPTER VIII-SUPPLIES AND EQUIPMENT

N. B.: Dates appearing in the citations of source of documents codified in this chapter, such as dates of issuance, approval, or effectiveness, are obtained from the original document. For general statutory provisions governing effective dates, validity, and constructive notice see section 7 of the Federal Register Act (49 Stat. 502; 44 U.S.C. 307) and sections 3 and 4 of the Administrative Procedure Act (60 Stat. 238; 5 U.S.C., Sup., 1002, 1003).

CROSS REFERENCES: Department of the Navy, supplies and accounts, Title 34, Part 8; Bureau of Federal Supply, Department of the Treasury, Title 41, Chapter I; Office of Contract Settlement, Ti tle 32, Chapter XX; Reconstruction Finance Corporation, Title 13, Chapter I, Title 32, Chapter XIX; War Assets Administration, Title 32, Chapter XXIII; War Contracts Price Adjustment Board, Title 32, Chapter XIV; War Damage Corporation, Title 13, Chapter II.

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802 General procurement policies and procedures. [Revised] 803 Contracts. [Amended]

805 Foreign purchases.

[Revised]

806 Interbranch and interdepartmental purchases. [Amended] 808 Federal, State, and local taxes. [Amended]

809 Labor. [Amended]

811 Miscellaneous purchase instructions. [Amended]

812 Renegotiation and price adjustment. [Amended], 813 Forms of contracts. [Amended]

814 Requisitioning and mandatory orders. [Revised] 819 Printing and binding. [Revoked]

Subchapter B-Disposition of Property

821 General disposition of personal property. [Amended]

823 Disposition of personal property for purposes directly related to the prosecution

of the war. [Revised]

824 Disposition of non-repairable property. [Amended]

825 Disposition of strategic materials. [Revised]

826 Disposition of serviceable non-military personal property. [Amended]

827 Disposal of surplus personal property. [Amended]

828 Reports with respect to disposition of personal property. [Revised]

89 Appendix [Note]

830 General disposition of industrial installations. [Revised]

832 Reporting and disposition of excess and standby installations; custody and accountability. [Revised]

833 Declaration of surplus installations; custody and accountability. [Revised] 834 Leases and other disposals by War Department. [Revised]

835 Disposition of leaseholds and improvements on leased land. [Revised]

836 Salvage, relocation, and dismantlement of active, standby, excess and surplus industrial installations. [Added] 839 Disposal of special tooling in Government-owned aircraft plants. [Revised] Subchapter C-Termination of Contracts

841 General provisions. [Amended]

843 Interim financing. [Amended]

844 Contractor inventory. [Amended]

848

ABBREVIATIONS: The following abbreviations are used in this chapter:

AAF

A-N

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Army Air Force

Army-Navy

Appendix

Army Regulations

Military District of Washington

Army Service Forces

Air Transport Service Command

723338-47-SUPP. IX-BK. 2.

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PART 801-GENERAL INSTRUCTIONS
Subpart A-Introduction

Sec. 801.101-1

801.101a 801.105a

Suggestions for simplification or
improvement. [Added]
Publication of procurement cir-
culars. [Added]
Reference to units the designa-
tions of which have since been
changed, or which have been
abolished and their functions
transferred to other units.
[Amended]

Subpart C-Applicability of Regulations 801.108-4

801.108-5 801.108-6

Army Air Forces. [Amended]
Service commands. [Amended]
Procurement, contracting, termi-
nation and renegotiation au-
thority of commanding officers
outside continental United
States. [Revised]

801.108-7 Procurement within the United
States for armed forces abroad.
[Revised]

Subpart D-Miscellaneous Prohibitions Prohibition against acceptance of voluntary service. [Revised]

801.109

801.109-1 [Amended]

801.109-2 [Added]

801.109-3 [Added] 801.110-2 [Amended]

AUTHORITY: §§ 801.101-1 to 801.110-2, appearing in this Supplement, issued under sec. 5a, 41 Stat. 764, 765, as amended, 55 Stat. 838; 10 U.S.C. 1193-1195, 50 U.S.C., App., Sup., 601-622.

Subpart A-Introduction

§ 801.101-1 Suggestions for simplification or improvement. Suggestions for the simplification or improvement of procurement reg

ulations and for the consolidation or elim-
ination of sections thereof are invited, and
may be forwarded directly to the Procure-
ment Judge Advocate, Office of Director of
Procurement, Headquarters, Army Service
Forces, Room 3E-479, The Pentagon, Wash-
ington 25, D. C. All suggestions should be
accompanied with reasons therefor. [Proc.
Reg. 1, C55, Mar. 30, 1946, 11 F.R. 3581]
[Preceding section, in small type, superseded
by following section during period covered
by this Supplement]

§ 801.101-1 Suggestions for simplification or improvement. Suggestions for the simplification or improvement of procurement regulations and for the consolidation or elimination of sections thereof are invited, and may be forwarded directly to the Procurement Judge Advocate, Procurement Group, SS&P Division, WDGS, Room 3-C-747, The Pentagon, Washington 25, D. C. All suggestions should be accompanied with reasons therefor. [Proc. Reg. 1, C57, Sept. 19, 1946, 11 F.R. 11447]

§ 801.101a Publication of procurement circulars. The publication of War Department Procurement Circulars was resumed with the publication of Procurement Circular No. 1 dated 10 June 1946. As indicated in AR 310-20, dated 1 July 1946, these circulars will publish general instructions and information governing the procurement of supplies, materials, equipment, nonpersonal services, construction work, and certain other related matters pending incorporation in procurement regulations, and also matter of a semipermanent nature. Distribution

of Procurement Circulars is controlled by The Adjutant General and requests in connection with distribution should be made to The Adjutant General rather than to the office mentioned in § 801.106-1. [Proc. Reg. 1, C57, Sept. 19, 1946, 11 F.R. 11447]

§ 801.105a Reference to units the designations of which have since been changed, or which have been abolished and their functions transferred to other units.

(b) Among such changes, particular attention is directed to the following, affecting the units named in italics below:

(1) Services of Supply. Section I of General Orders No. 14, W. D., dated 12 March 1943, provides that "The name of Services of Supply is changed to Army Service Forces"; and ASF Circular No. 30, dated May 15, 1943 provides in part that "The services heretofore designated as 'supply services' will hereafter be known as 'technical services' ".

Ex

(2) War Food Administration. ecutive Order 9577, dated June 29, 1945 (3 CFR, 1945 Supp.) and effective at the close of business on June 30, 1945, terminated the War Food Administration, and transferred the functions, duties and powers of the War Food Administrator to the Secretary of Agriculture.

(3) Defense Plant Corporation; Metals Reserve Company; Rubber Reserve Company; Defense Supplies Corporation. By Joint Resolution of Congress (59 Stat. 310; 15 U.S.C., Sup., 606b note), approved June 30, 1945, and effective on July 1, 1945, Defense Plant Corporation, Metals Reserve Company, Rubber Reserve Company and Defense Supplies Corporation were dissolved, and their assets and liabilities were transferred to Reconstruction Finance Corporation, of which they had been subsidiaries. By Title 32, Chapter XXIII, Note, infra, effective as of the close of business on January 15, 1946, the Surplus Property Administration transferred to War Assets Corporation all of the functions, duties and responsibilities heretofore assigned to the Reconstruction Finance Corporation with respect to the disposal of property. (See subparagraph (6) of this paragraph.)

(4) Production Division; Purchases Division. ASF Circular No. 329, dated August 31, 1945, provides in part that "Effective September 1, 1945, the Produc

tion and Purchases Division is established under the jurisdiction of the Director of Matériel to consist of the former Production Division and the former Purchases Division"; and the authority previously granted to the Director, Purchases Division, has been delegated to the Director, Production and Purchases Division (See § 801.107-6). ASF Circular No. 453, dated December 27, 1945, redesignated the Production and Purchases Division of the Director of Material as the Procurement Division, and amended ASF Circular No. 329, above referred to, accordingly. (See subparagraphs (8) and (9) of this paragraph.)

(5) Legal Branch, Office of the Director of Matériel. War Department Circular No. 273, dated September 10, 1945, establishes the office of Procurement Judge Advocate, and prescribes his authority and duties; and Section III of ASF Circular No. 345, 1945, dated September 13, 1945, provides in part that "The staff of the Legal Branch, Office of the Director of Matériel, is transferred to the Office of the Procurement Judge Advocate, and the positions of Legal Assistant to the Director of Matériel, Chief, Legal Branch, Office of the Director of Matériel, and of Legal Adviser to the Readjustment and Renegotiation Divisions, and the Legal Branch, Office of the Director of Matériel, are abolished.

(6) Surplus Property Board; Surplus Property Administration. By 59 Stat. 533; 50 U.S.C., App., Sup., 1614a, 1614b, approved September 18, 1945, and effective October 1, 1945, there was established in the Office of War Mobilization and Reconversion a Surplus Property Administration to be headed by a Surplus Property Administrator; and the Surplus Property Board was abolished and all of its functions transferred to the Surplus Property Administrator. By Executive Order 9689, January 31, 1946 (Title 3, Chapter II, supra), the functions of the Surplus Property Administrator and of the Surplus Property Administration were transferred to the chairman of the board of directors of the War Assets Corporation and to the War Assets Corporation, respectively, and the Surplus Property Administration was merged into and consolidated with the War Assets Corporation, By the same Executive order, the War Assets Corporation, effective March 25, 1946, became

the War Assets Administration headed by a War Assets Administrator.

(7) War Production Board. By Executive Order 9638, dated October 4, 1945, (3 CFR, 1945 Supp.) and effective as of the close of business on November 3, 1945, all functions and powers of the War Production Board were transferred to the Civilian Production Administration established by that order in the Office of Emergency Management of the Executive Office of the President, and the War Production Board was terminated.

(8) Office of the Director of Matériel. ASF Circulars Nos. 52 and 53, dated March 2, 1946, effective March 11, 1946, abolished the Office of the Director of Matériel and the Staff Divisions therein and replaced them by the Office of the Director of Procurement consisting of the Purchases, Production, Renegotiation, Readjustment, International, and Research and Development Branches.

The former Director, Procurement Division, Office of the Director of Matériel (see subparagraph (4) of this paragraph) is now the Chief of the Purchases Branch, and also the Chief of the Production Branch, Office of the Director of Procurement.

Functions in connection with surplus property were transferred from the former Readjustment Division as follows:

(1) Disposal of surplus military property to the Supply Control Branch, Office of the Director of Supply;

(11) Disposal of surplus command installations to the Installations Branch, Office of the Director of Services; and

(iii) Coordination and liaison on all types of surplus property to the Assistant Director (Surplus Disposals), Office of the Director of Plans and Policy.

The position of Fiscal Director was abolished and the functions, responsibilities and authority of that position were transferred to the Chief of Finance. The Chief of Finance was also designated as a technical service.

Labor relations and labor supply functions of the Industrial Personnel Division were transferred to the Production Branch.

[Preceding subparagraph (8), in small type, superseded by following subparagraph (8) during period covered by this Supplement]

(8) Office of the Director of Matériel. ASF Circulars Nos. 52 and 53, dated March 2, 1946, effective March 11, 1946, abolished the Office of the Director of Matériel and the Staff Divisions therein and replaced them by the Office of the Director of Procurement consisting of the Purchases, Production, Renegotiation, Readjustment, International, and Research and Development Branches.

The former Director, Procurement Division, Office of the Director of Matériel (see subparagraph (4) of this paragraph) was assigned as the Chief of the Purchases Branch, and also as the Chief of the Production Branch, Office of the Director of Procurement.

The position of Fiscal Director was abolished and the functions, responsibilities and authority of that position were transferred to the Chief of Finance. The Chief of Finance was also designated as a technical service.

Labor relations and labor supply functions of the Industrial Personnel Division were transferred to the Production Branch.

(9) Purchases Branch; Production Branch. Section I, ASF Circular 90, April 9, 1946, effective April 8, 1946, redesignated the Purchases Branch and the Production Branch as the Current Procurement Branch and the Procurement Planning Branch, respectively.

(10) War Department Reorganization. Pursuant to Executive Order 9722, May 13, 1946 (Title 3, Chapter II, supra), which authorizes a reorganization of the War Department and the Army effective June 11, 1946, Circular No. 138, War Department, May 14, 1946, has been issued setting forth certain changes.

The most important of the changes from a procurement standpoint are:

(i) Service, supply and procurement activities of the Headquarters, Army Service Forces are transferred to the Service, Supply, and Procurement Division, War Department General Staff. Effective June 11, 1946, references in these Procurement Regulations to the Commanding General, Headquarters, Army Service Forces, or to divisions or branches of Headquarters, Army Service Forces, shall be construed as referring to the Director of Service, Supply, and Procurement, War Department General Staff, or to the appropriate groups or branches of the Service, Supply, and Procurement Division, War Department General Staff, as the case may be.

(ii) The continental United States is divided into six Army Areas (replacing the nine Service Commands) for command of all activities except activities of the Army Air Forces and exempted installations. Effective June 11, 1946, references in this chapter to the Commanding Generals of the Service Commands, or to the Service Commands,

shall be construed as referring to the Commanding Generals of the Army Areas, or to the Army Areas, as the case may be. [Paragraph (b) amended by Proc. Reg. 1, C55, Mar. 30, 1946, 11 F.R. 3581, and C56, June 1, 1946, 11 F.R. 6277]

CODIFICATION: Prior to the revision of paragraph (b), subparagraph (4) was amended to read as follows by Proc. Reg. 1, C54, Jan. 31, 1946, 11 F.R. 1701:

(4) Production Division; Purchases Division. ASF Circular No. 329, dated August 31, 1945, provides in part that "Effective September 1, 1945, the Production and Purchases Division is established under the jurisdiction of the Director of Matériel to consist of the former Production Division and the former Purchases Division"; and the authority previously granted to the Director, Purchases Division, has been delegated to the Director, Production and Purchases Division (see 801.107-6). ASF Circular No. 453, dated December 27, 1945, redesignated the Production and Purchases Division of the Director of Matériel as the Procurement Division, and amended ASF Circular No. 329, above referred to, accordingly.

Subsequent to its revision, paragraph (b) was amended in the following respects by Procurement Reg. 1, C56, June 1, 1946, 11 FR. 6277:

1. The parenthetical phrase at the end of subparagraph (4) reading "See subparagraph (7) of this paragraph" was amended to read as set forth above.

2. Subparagraph (8) was amended to read as set forth above.

3. Subparagraphs (9) and (10) were added.

Subpart C-Authority for and Applicability of Regulations

801.108-4 Army Air Forces.

(b) Whenever used in this subpart, unless otherwise specifically indicated, the term "technical services" shall be deemed to include the Army Air Forces, and the term "chiefs of the technical services" shall be deemed to include the Commanding General, Army Air Forces. Likewise, the terms "Director, Production and Purchases Division, Headquarters, Army Service Forces", "Director, Procurement Division, Headquarters, Army Service Forces", "Chief, Purchases Branch, Headquarters, Army Service Forces", and "Director, Readjustment Division, Headquarters, Army Service Forces", when used in connection with action to be taken in respect of the Army Air Forces, shall, unless otherwise Specifically indicated, be deemed to refer to the Special Representative of the

Under Secretary of War designated for that purpose.

(c) Except as specifically otherwise provided, all communications to the Army Air Forces or to the Commanding General, Army Air Forces, relating to procurement, should be addressed to the attention of the Readjustment and Procurement Division, AC/AS-4. [Paragraphs (b) and (c) amended by Proc. Reg. 1, C55, Mar. 30, 1946, 11 F.R. 3582)

§ 801.108-5 Service commands. The regulations in this subchapter are applicable to the procurement activities of the service commands. Where procurement is accomplished by a service command at the direction of the chief of a technical service or his duly authorized representative, the directions will contain references to the applicable sections of this chapter and will also contain supplementary instructions where appropriate. In such a case, for the purposes of this subchapter, the procurement shall be regarded as procurement by the technical service concerned and the contract will be regarded as a contract of that technical service. In all other cases, except as provided in § 803.318c-2 of this subchapter, the service command accomplishing the procurement shall act independently of any technical service and the term "technical service" and the term "service," as used in this subchapter, shall be deemed to refer to the service commands and the term "chiefs of technical services" and "chiefs of services" shall be deemed to refer to the commanding generals of the service commands. [Proc. Reg. 1, C55, Mar. 30, 1946, 11 F.R. 3582]

§ 801.108-6 Procurement, contracting, termination and renegotiation authority of commanding officers outside continental United States. (a) In general, each commanding officer in charge of United States armed forces outside the continental United States and its territories and possessions, including Alaska, who is responsible direct to the War Department, in connection with the procurement of supplies and facilities which he may deem necessary or appropriate to facilitate the prosecution of the war effort and to accomplish the mission confided in him or to protect the health, safety and welfare of the forces under his command, may disregard the provisions of this chapter, Army Regulations and other regulations, circulars, or instructions, and any provisions or

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