tion for the region in which the field procurement office is located. In addition, operational liaison between the office of the chief of service and the Washington office of War Assets Administration, as well as special offices, may be established if the chief of service deems such operational liaison desirable. [Subparagraph (3) amended by Proc. Reg. 6, C57, Sept. 19, 1946, 11 F.R. 11459]

$806.613-5 Procedure for acquiring surplus property. In general, surplus property declared surplus by an agency other than the War Department will be transferred to the War Department at a fair valuation as determined by the disposal agency. Details of such transfer procedure may be ascertained from the offices of the disposal agencies. See § 806.614 as to the appropriate form of delivery order to be used in acquiring surplus property from disposal agencies. Where the property desired was declared surplus by the War Department, the acquiring technical service will proceed in accordance

with the provisions of § 827.723 of this chapter. Transfers without reimbursement between the War and Navy Departments and the Coast Guard are authorized under the provisions of 10 U. S. C. 1274 as amended by the Act of August 7, 1946 (P. L. 627— 79th Congress), but transfers under this act will be limited to military type items as defined in paragraph 1 p of War Department TM 38-419. Transfers without reimbursement between the War Department and Veterans' Administration are authorized by Section 102, Title I, of the Act of June 22, 1944 (P. L. 346— 78th Congress). [Proc. Reg. 6, C57, Sept. 19, 1946, 11 F.R. 11459]

§ 806.613-7 Policy matters. All policy matters pertaining to the acquisition of surplus industrial property from disposal agencies will have the approval of Readjustment Branch, Procurement Group, SS&P Division, WDGS, and policy matters pertaining to the acquisition of all other types of surplus property from disposal agencies will have the approval of the Director of Service, Supply, and Procurement (Supply Group), WDGS. [Proc. Reg. 6, C57, Sept. 19, 1946, 11 FR. 11459]

806.613-9 Items in critical short supply. Provisions have been made in 833.303 (a) of this chapter and in War Department Technical Manual 38-419, dated July 1, 1946, for the removal from

installations of excess property which is in critical short supply within the U. S. Army. [Proc. Reg. 6, C57, Sept. 19, 1946, 11 F.R. 11459]

Subpart D-Supplies Manufactured in Government-Owned Establishments

[Added]

SOURCE: §§ 806.640 to 806.643, inclusive, contained in War Department Procurement Regulation 6, C57, Sept. 19, 1946, 11 F.R. 11459.

§ 806.640 Statutory basis. (a) Section 5a of act of June 3, 1916, as added by section 5 of act of June 4, 1920 (41 Stat. 765), and amended by act of June 5, 1920 (41 Stat. 975) and section 2 of act of December 16, 1940 (54 Stat. 1224; 10 U. S. C. 1195) provides:

The Secretary of War shall cause to be manufactured or produced at the Government arsenals or Government-owned factories of the United States all such supplies or articles needed by the War Department as said arsenals or factories are capable of manufacturing or producing upon an economical basis. All appropriations for manufacture of material pertaining to approved projects which are placed with arsenals, Government-owned factories, or other ordnance establishments shall remain available for such purpose until the close of the next ensuing fiscal year.

(b) The act of June 5, 1920 (41 Stat. 975) as amended by act of July 1, 1922 (42 Stat. 812) and act of June 2, 1937 (50 Stat. 245; 41 U. S. C. 23) provides:

All orders or contracts for work or material or for the manufacture of material pertaining to approved projects heretofore or hereafter placed with Government-owned establishments shall be considered as obligations in the same manner as provided for similar orders or contracts placed with commercial manufacturers or private contractors, and the appropriations shall remain available for the payment of the obligations so created as in the case of contracts or orders with commercial manufacturers or private contractors.

§ 806.641 Manufacturing facilities of War Department establishments. Government-owned establishments under the control of the War Department are equipped with the following facilities:

(a) Ordnance Department. Machine shops, foundries capable of handling both ferrous and nonferrous work, forge shops, metal stamping and drawing presses, gas and electric welding shops, heat treatment equipment, woodworking

(b) Quartermaster Corps. Depots equipped with facilities for woodwork, for the manufacture and repair of leather, textile, canvas, webbing, metal and wheelwright products.

(c) Chemical Corps. Gas-mask factory and plants for producing chemical agents, smoke candles, etc.

§ 806.642 Invitation for bids. (a) When supplies are to be purchased by a technical service which are not capable of being manufactured by its facilities but which are capable of being manufactured by the facilities of another technical service, bids will be invited as prescribed in Part 802 of this chapter before the order is placed with the other technical service unless:

(1) The amount involved is less than $1,000.

(2) The supplies are, in the opinion of the chief of the requiring service, of such a nature that the interest of the public would be injured by publicly divulging them.

(3) The supplies are needed in an emergency.

(4) The supplies are needed for tests or other special purposes, in which case orders exceeding $1,000 may be placed after obtaining the approval of the Under Secretary of War.

(b) When inviting bids for supplies capable of being manufactured by the facilities listed in § 806.641, purchasing officers will forward a copy of the invitation for bids to the following offices:

(1) By facilities listed in § 806.641 (a). To the Chief of Ordnance, Arensal Orders Branch.

(2) By facilities listed in § 806.641 (b). (i) Woodwork, leather, canvas, metal, and wheelwright products. To the Commanding Officer, Jeffersonville Quartermaster Depot, Jeffersonville, Indiana.

(ii) Textile and canvas products. To the Commanding Officer, Philadelphia Quartermaster Depot, Philadelphia, Pa. (3) By facilities listed in § 806.641 (c). To the Chief of the Chemical Corps. Prepara

§ 806.643 Estimates — (a) tion of. (1) Upon receipt of an invitation for bids, the offices listed in § 806.642 will submit estimates in response thereto

supplies as in their opinion can be economically manufactured at their establishments.

(2) Failure to receive estimates before the time of opening of bids will be considered as indicating the inability of Government-owned establishments to manufacture the supplies required.

(3) Estimates will be prepared with great care so that, if an order is placed for the supplies with such establishment, only in exceptional cases will it become necessary to increase the monetary consideration involved.

(b) Consideration of. (1) Part 802 of this chapter..

(2) In making awards, estimates received from such establishments will be considered in exactly the same manner as are bids from commercial bidders.

(3) If an estimate received from a Government-owned establishment is lower than the bids received from commercial bidders, but the chief of the technical service purchasing the supplies is of the opinion that the manufacture thereof by a Government-owned establishment would not be economical or desirable, a full report accompanied by suitable recommendations will be submitted to the Under Secretary of War before the award is made.

Subpart E-State and Local Taxes

§ 808.831 Applicable tax directives. CODIFICATION: The table in § 808.831 was amended in the following respects during the period covered by this Supplement:

1. The item "Indiana" was amended to read "Indiana-Memo. No. S5-91-43, April 38, 1943, as amended by Section II, ASF Circular No. 103, 1946," by Proc. Reg. 8, C 56, June 1, 1946, 11 F. R. 6279.

2. The item "Colorado" was amended to read "Colorado-Memo. No. 34-46, June 5, 1946," by Proc. Reg. 8, C 57, Sept. 19, 1946, 11 F.R. 11460.

809.914-1 List of disqualified persons and firms. [Added]

Subpart E-Walsh-Healey Public Contracts Law General. [Amended]

809.916 809.917

809.920

809.921

809.922

809.924

Publications to be furnished con-
tracting officers. [Revised]
Interpretations not found in pub-
lications furnished contracting
officers. [Amended]
Exceptions not stated in the pub-

lications furnished contracting
officers. [Amended]
Other information not found in
publications furnished con-
tracting officers. [Revised]
Lists of disqualified persons and
firms. [Added]

AUTHORITY: §§ 809.914-1 to 809.924, appearing in this Supplement, issued under sec. 5a, 41 Stat. 764, 765, as amended, 55 Stat. 838; 10 US.C. 1193-1195, 50 U.S.C. App., Sup., 601-622.

SOURCE: 809.914-1 to 809.924, appearing in this Supplement, contained in War Department Procurement Regulation 9, Change 55. Mar. 30, 1946, 11 F.R. 3588.

Subpart D-Davis-Bacon Act

§ 809.914-1 List of disqualified persons and firms. The list of persons and firms found by the Comptroller General to have violated the requirements of the Davis-Bacon Act is published from time to time in ASF Circulars. Subpart E-Walsh-Healey Public Contracts Law

809.916 General.

CODIFICATION: In § 809.916 the reference to *1802.297-1A (19)" was amended to 802.296-1a (19)."

809.917 Publications to be furnished Contracting officers. The Secretary of Labor has published a document entitled Walsh-Healey Public Contracts Act,

Rulings and Interpretations No. 3, October 1, 1945." This publication contains a compilation of the text of the act, the regulations of the Secretary of Labor relating thereto, and pertinent rulings and interpretations. The chiefs of the technical services are responsible for furnishing these publications and a supply of the forms referred to therein to each of their contracting officers (it is no longer necessary to obtain Form PC-1 from the Department of Labor; see § 802.296-1a (s) of this subchapter). Information of interest not found in these publications is set forth in §§ 809.920, 809.921 and 809.922.

§ 809.920 Interpretations not found in publications furnished contracting officers.

(d) It has been held that dry powdered whole milk and dry ice cream mix are perishable, except when packed with inert gas in hermetically sealed cans, and that these two products when packed with inert gas in hermetically sealed cans are not perishable. [Paragraph (d) added]

§ 809.921 Exceptions not stated in the publications furnished contracting officers. (c)

(4) [Revoked]

§ 809.922 Other information not found in publications furnished contracting officers. (a) The partial exception permitting the employment of female persons between the ages of 16 and 18, under certain conditions, was revoked by the Secretary of Labor effective September 5, 1945, except that such female persons may be employed in the performance of contracts awarded prior to September 5, 1945, subject to the conditions prescribed in the original exception.

§ 809.924 Lists of disqualified persons and firms. (a) The list of persons or firms found by Secretary of Labor to have breached or violated contractual representations and stipulations required by Walsh-Healey Act, published by the Comptroller General; and

(b) The list of persons and firms which have been held ineligible to be awarded contracts subject to Public Contracts Act (Walsh-Healey Act) under provisions of section 5 of that act, published by Department of Labor, are published from time to time in ASF Circulars.

§ 811.1115-22 Submission of contracts for approval by the Director. When a license, release or assignment requires the Director's approval, it shall be submitted to the Procurement Judge AdvoIcate with the number of copies desired approved and returned plus one copy for the files of the Procurement Judge Advocate. There shall also be submitted a memorandum of facts signed by the delegate, containing the following:

(a) Identification and brief description of the subject matter of the patent, patent application or invention involved.

(b) A brief statement of the Delegate's conclusions regarding validity and infringement and the reasons therefor.

(c) A statement of the extent of Government use of the invention (s) including the estimated money value of the claim, if any, and an estimate of future procurement, if any, involving possible increase of the claim.

(d) Reference to paragraphs of these regulations which require the Director's approval of the contract.

(e) Reasons for omission of the "NonEstoppel" article, if such be the fact, together with statement of efforts made to obtain inclusion of such article.

(f) Recommendation that the contract be approved and the reasons therefor. [Proc. Reg. 11, C57, Sept. 19, 1946, 11 F.R. 11460]

§ 811.1116

Patent rights provisions of a development contract.

CODIFICATION: In §§ 811.1116, 811.1116-7, 811.1116-10, 811.1116-12 and 811.1116-13 the references to "§ 802.239a" were changed to read "§ 802.217-6" by Proc. Reg. 11, C55, Mar. 30, 1946, 11 F.R. 3589.

Subpart H-Miscellaneous Matters

§ 811.1180-1 General. The policies with respect to discounts set forth in § 802.242a are hereby made applicable to purchases by negotiation. [Proc. Reg. 11, C54, Jan. 31, 1946, 11 F.R. 1723]

§ 811.1180-2 Fiscal aspects of discounts. Where discounts are involved the originals and copies of the purchase instruments will be stamped-"DiscountExpedite" by the initiating office and the discount terms shown thereon underscored or circled in red to invite attention of all concerned to the possible priority status of the instrument and allied document. For fiscal aspects of cash discounts, see AR 35-6200. [Proc. Reg. 11, C54, Jan. 31, 1946, 11 F.R. 1723]

(b) The main sources of instructions concerning notices of shipment are paragraph 7 of AR 55-105, as amended, and paragraph 33 of TM 38-415, (the latter reference relates to shipments to ports of embarkation). Other general and special instructions on the subject of notices of shipment are also issued from time to time by certain of the technical services. The chiefs of the technical services will bring to the attention of all contracting officers the requirements of the pertinent publications and instructions referred to above, and will imple

(1) Interoffice communication systems, sound recording equipment and public address systems. See Section V, Circular No. 82, War Department, 1945.

(2) Spare parts. See § 811.1183.

CODIFICATION: 811.1187 was amended in the following respects by Proc. Reg. 11, C56, June 1, 1946, 11 F.R. 6279.

1. Items (1) and (3) were deleted. 2. Item (2) was redesignated item (1) and amended to read as set forth above.

3. Item (4) was redesignated item (2). $811.1187a Restrictions on local purchases. (a) The Supply Control System sets forth the requirements of the Army for regularly stocked material and supplies. Additional items required by the Army in insufficient amounts and frequency to justify maintenance in the depot system and of a type normally available in civilian economy are purchased locally. Extent of such local purchases must of necessity be based on consideration of relative importance of cost and administrative advantages of local purchases over supply from depot system. Local purchases effected must be regulated to the end that nonstandard supplies of limited use are not accumulated and undue depletion of supplies available to civilian economy do not result.

(b) (1) The term "local purchases" as used in these procurement regulations comprises purchases made by depots, posts, camps, stations, ports of embarkation, installations, and units of the Army Ground Forces, Army Air Forces, or other War Department activities except civil works activities of the Corps of Engineers. Such purchases are made from retail or wholesale establishments, distributors, jobbers, or dealers, of items of material and supplies or of nonpersonal services for immediate use or consumption.

(2) The term "local purchases" as used herein does not include the purchase of items specifically authorized to be bought locally as part of the War Department planned procurement program, such as perishable subsistence, laundry services, burial services, etc.

(c) Local purchases of either standard items of issue or nonstandard items will be made only under the following conditions:

(1) The material or supplies are for immediate consumption and are not for stock; or

(2) The item or a suitable substitute therefor is not available through the normal depot supply channels; the item is a standard issue item for which local purchase has been authorized by the chiefs of technical services or Commanding General, Army Air Forces; or the item is required to meet the needs of a real emergency, and a definite demonstrative harm would result at the requesting installation if the item were not purchased immediately. Determination of emergencies must not be adopted as a substitute for proper foresight and planning.

(d) Responsibility for controlling local purchases is a continuing function in all echelons and at all installations. It shall be exercised vigorously and systematically.

(e) Reference is also made to section II, WD Circular 143, 1945, dealing with local purchase of items of ordnance supply such as spare parts, tools, accessories, shop equipment, and supplies. [Proc. Reg. 11, C57, Sept. 19, 1946, 11 F.R. 11460]

CODIFICATION: Prior to revision of § 811.1187a as set forth above, paragraph (b) was amended to read as follows by Proc. Reg. 11, C56, June 1, 1946, 11 F.R. 6279:

(b) Reference is also made to Section II, Circular No. 143, War Department, 1945,