tor performance. (See DoD Instruction 7220.14, "Uniform Cost Accounting for Depot Maintenance," Aug. 14, 19631 and DoD Instruction 7720.9, "Depot Maintenance Production Report," Dec. 18, 1963.1)

(f) Maintenance workloads of like or similar type equipment or items, will be consolidated to the maximum extent feasible within and between DoD components. These consolidated workloads will be governed by a single work specification that satisfies the technical requirements of the participating agencies.

(g) All DoD components must coordinate proposed contract maintenance with other appropriate DoD components prior to the award of a contract.

(a) The responsible DoD component will assure that all referrals for maintenance workloads to be performed by contract sources include:

(1) Specific identification of equipment and/or items to be processed.

(2) Quantitative input and output schedules for accomplishment of the workload (s).

(3) Specific technical instructions for the work to be accomplished.

(4) Test procedures and output standards for completed work.

(5) A parts breakdown list associated with the equipment or item(s) to be overhauled or repaired. Such lists will include "Piece part" replacement factor data when available and itemized pricing information.

(6) Special instructions for parts rework and/or component repair or replacement when applicable.

(7) Disposition instructions for reparable parts and/or components.

(8) Management reporting requirements including frequency intervals. (See DoD Instruction 7220.14, "Uniform Cost Accounting for Depot Maintenance," Aug. 14, 19631 and DoD Instruction 7720.9, "Depot Maintenance Production Report," Dec. 18, 1963.1)

(b) Procedures for procurement implementation of policies covered by this instruction will be included in the Armed Services Procurement Regulation.

(c) Each DoD component will designate a single focal point for:

(1) Coordinating the contract maintenance program within and between activities to facilitate consolidation of like or similar type workloads designated for accomplishment by commercial

sources; and

(ii) Maintaining a master listing of all current maintenance contracts, appropriately identified, to facilitate timely coordination action.

§ 170.5 Responsibility.

Pursuant to the responsibilities outlined in DoD Directive 4151.1, "Policies Governing the Use/Commercial & Military Resources for Maintenance of Military Materiel," July 28, 1960,1 Assistant Secretary of Defense (Installations and Logistics) will monitor the overall program prescribed in this part.

1 Filed as part of original document. Coples are available at the Publications Counter, OASD(A), Room 3B200, Pentagon, Washington, D.C. 20301 or OX 52167.

The terms used in this part have the following meanings:

(a) Personal property. Household goods, unaccompanied baggage (personal effects), housetrailers (mobile homes), and privately-owned vehicles (POVs) (See Joint Travel Regulations).

(b) Traffic management. Development, coordination and supervision of DOD-wide programs, procedures, reports, standards, and criteria governing the procurement of services required to move, store, and handle personal property. It does not include policies and procedures of the program in the following areas: Entitlements, budgeting, funding, staffing, accounting, disbursing, and claims settlement.

(c) Continental United States (CONUS). The 48 contiguous States and the District of Columbia.

(d) Satisfactory service. Performance which meets the moving, handling, and storage standards of the Department of Defense.

(e) Carrier. Any carrier or forwarder of personal property that holds an appropriate certificate(s) or permit (s) issued by a Federal or State regulatory agency, or any overseas carrier or forwarder of personal property approved by the Department of Defense.

(f) Military Traffic Management and Terminal Service (MTMTS). The single manager operating agency for military traffic, land transportation, and common-user ocean terminals (DOD DIrective 5160.53, "Single Manager Assignment for Military Traffic, Land Transportation, and Common-User Ocean Terminals," March 24, 1967 (32 F.R.6295).

(g) Military transportation resources. Airlift under the control of or arranged by the Military Airlift Command (MAC) and sealift under the control of or arranged by the Military Sealift Command (MSC).

§ 173.4 Responsibilities and policies.

(a) The Assistant Secretary of Defense (Installations and Logistics) is assigned overall policy responsibility for the DOD personal property movement and storage program (hereafter referred to as the program). This responsibility encompasses program review and evaluation.

(b) MTMTS is responsible, in collaboration with other appropriate DOD components, for the development and

periodic review of the program to include its adequacy, standards, efficiency, economy, and cost effectiveness, and consistent with the following:

(1) Procurement of services. Services may be procured only from qualified carriers, storage firms, and contractors.

(2) Qualification of carriers, their agents, storage firms, and contractors. The their qualification of carriers, agents, storage firms, and contractors will be based upon:

(1) Appropriate authority to provide the required services.

(ii) Evidence of ability to provide satisfactory service.

(iii) Evidence of satisfactory equipment and facilities, including compliance with established fire standards.

(iv) Evidence of appropriate financial responsibility, including a performance bond for those carriers participating in the oversea movement of personal property.

(3) Carrier performance. Carrier performance will be evaluated as deemed necessary. Carriers which fail to meet the requirements of subparagraph (2) of this paragraph, or fail to meet the established standards of satisfactory service, or commit unethical acts, shall be excluded as a qualified program participant, in accordance with the criteria and procedures established by the MTMTS. Such carriers shall be provided an opportunity to (i) appeal the exclusion, and (ii) request requalification after correcting the deficiencies causing the exclusion. No carrier may be disqualified at an installation(s) for failing to meet the established standards of service, unless that disqualification is in accordance with procedures established pursuant to this subparagraph.

(4) Distribution of shipments to qualified carriers. Shipments of personal property shall be distributed in such a manner as to reward carriers most fully meeting the standards of service established under the provisions of subparagraph (3) of this paragraph, at the lowest overall cost to the DOD.

(5) Carrier representation by agents. (1) For household goods originating in and destined for delivery within CONUS, only three (3) carriers to a single destination State may be represented in an origin area by the same local agent. Of these three carriers, only one (1) may be a carrier that holds operating authority in all of CONUS. If an agent represents himself as a carrier to serve a specified

destination State, such agent may only represent two (2) other carriers serving that State.

(1) For household goods including unaccompanied baggage originating in the United States and destined overseas, only four (4) carriers may be represented in an origin area by the same local agent. If an agent represents himself as a carrier, such agent may only represent three (3) other carriers.

(iii) For household goods originating overseas and destined to a point in the United States or another point overseas, the Commander MTMTS with the advice of his field or designated representative in oversea areas, will take steps to assure that the number of carriers represented by any single oversea agent does not exceed the capability of that agent during any period.

(iv) For household goods originating at, and destined to points within a given State (intrastate), an agent may represent only one (1) carrier offering service to, from, or between points within that State. When an agent represents himself as a carrier performing such intrastate service, he may represent no other carriers performing the same service.

(v) For unaccompanied baggage not originating in CONUS, only one (1) carrier to a single destination State or foreign country may be represented in an origin area by the same local agent. If an agent represents himself as a carrier to serve a specified destination State(s) or foreign country, such agent may represent no other carrier serving that State or country.

(vi) The Commander, MTMTS may in subdivisions (ii) and (v) of this subparagraph grant an exception to these numerical limitations in those instances where (a) such an exception would not be inconsistent with the program's effective management and, (b) the agent (1) has the capability to represent a greater number of carriers during all periods or (2) lacks the capability to represent the specified number of carriers during any period.

(6) Use of storage facilities. The use of storage facilities will be in accordance with the following provisions:

(1) Temporary storage (storage in transit). Qualified commercial storage facilities will be used by the carrier.

(1) Nontemporary storage. Qualified commercial storage facilities will be used whenever they are available at less cost than available DOD storage facilities.

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(7) Use of military transportation resources. Military transportation resources will be used to the maximum practicable extent for the movement of personal property.

(c) In addition, MTMTS is assigned responsibility for the technical direction, supervision, and evaluation of the traffic management aspects of the program on a worldwde basis, subject to the overall guidance, policies, and programs established by ASD (I&L). In carrying out this function, MTMTS will:

(1) Maintain in a current status a list of qualified carriers.

(2) Publish and maintain in a current status a DOD Personal Property Traffic Management Regulation (4500.34-R)' for DOD-wide use by transportation officers in arranging for the movement, storage and handling of personal property.

(3) Develop and prescribe personal property shipping container specifications as may be required to assure adequate protection of the property being shipped and compatibility with transportation capabilities.

(4) Determine the effectiveness of the performance of traffic management functions assigned to and performed at DOD installations.

(5) Furnish technical guidance and assistance including information concerning traffic management cost data and statistics,

required.

to DOD components as

ters incidental to the transportation and storage of personal property.

(10) Analyze and determine the reasonableness of rates for transportation and related services which are submitted voluntarily or by bid.

(11) Establish and convene, in conjunction with appropriate DOD components, such joint committees or working groups as are required to assure effective operation of the program.

(12) Consult with the Small Business Administration and appropriate representatives of the moving and storage industries on those portions of DOD-wide procedures, standards, criteria, and regulations developed under this part which directly affect them.

(13) In coordination with the DOD components concerned, establish CONUS and overseas field offices or designate representatives in overseas areas to provide effective support to shipping and receiving installations of the military services to carry out assigned responsibilities.

(d) In addition, MTMTS field or designated representatives in overseas areas will:

(1) Exercise traffic management responsibility for the personal property moving and storage program in over

seas areas.

(2) Coordinate the traffic management aspects of the personal property moving and storage program of their assigned areas with MTMTS.

(3) Make recommendations to MTMTS with respect to the issuance or modification of policies, the ratio of carrier/agent representation, and limitations as to numbers of carriers necessary to satisfy requirements.

(4) Provide traffic management information and data to MTMTS, as required.

(5) Receive, accept, and negotiate rates for intratheater movements of personal property as required by the MTMTS.

(6) Communicate directly with MTMTS on personal property traffic management aspects of the program.

(e) The Secretaries of the military departments, through the headquarters, military services, will:

(1) Establish, operate, staff, support, and supervise their personal property shipping offices, worldwide.

(2) Take timely and appropriate action to correct program deficiencies and discrepancies as reported by MTMTS.

(3) Furnish such information, including cost and claims data, as may be required by MTMTS, concerning services

§ 174.1 Authority and responsibility.

(a) The Secretary of Defense has designated the Secretary of the Navy as the "Single Manager for Ocean Transportation" with authorities and responsibilities as assigned by the Secretary of Defense (21 FR 4022).

(b) The Single Manager Operating Agency for Sealift Service is titled the Military Sealift Command (MSC).

(c) The Single Manager has designated the Commander, Military Sealift Command, as the Executive Director for the Single Manager Operating Agency for Sealift Service.

(d) The Military Sealift Command (MSC) is a major component of the U.S. Navy and is commanded by a flag officer designated by the Chief of Naval Operations, subject to the approval of the Secretary of the Navy and the Secretary of Defense (32 FR 6300). MSC is a part of the Operating Forces of the Navy, and the Commander, Military Sealift Command, is under the military command of the Chief of Naval Operations, except that the Assistant Secretary of the Navy (Installations and Logistics) exercises policy supervision in procurement, administrative, and management principles affecting the Military Sealift Command including, inter alia; (1) determinations and findings authorizing negotiation of contracts and (2) business clearance as required by Navy Procurement Directive 1-403. Also, the Assistant Secretary of the Navy (Financial Management) exercises policy supervision with respect to fiscal reporting, as well as statistical, analytical accounting, and budgeting procedures consistent with DoD Directive 7410.4.

(e) The Commander, Military Sealift Command, provides ocean transportation

service for the movement of personnel, cargo, bulk petroleum, and mail for all components of the Department of Defense (excluding that transported by units of the fleet) and as authorized for other agencies of the U.S. Government, subject to the policies of the Secretary of Defense. MSC also operates ships in support of scientific projects, fleet service forces, and other programs for agencies or departments of the United States. The primary mission of MSC is to provide immediate sealift capability in an emergency. MSC operates Governmentowned ships and augments this capability by shipping cargo and passengers in commercially operated ships, chartering ships, and exercising operational control over ships activated from the National Defense Reserve Fleet to meet emergency needs.

The Military Sealift Command (formerly the Military Sea Transportation Service) was originally established by directive of the Secretary of Defense dated August 2, 1949 (14 FR 5203). Pursuant to this directive, terms of reference, preliminary agreements and procedures were determined by designated representatives of the Chief of Staff, U.S. Army, the Chief of Naval Operations, and the Chief of Staff, U.S. Air Force. These were promulgated by the Deputy Chief of Naval Operations (Logistics) on September 2, 1949, and concerned those matters incident to the formation of MSC, including the transfer of ships, the assignment of personnel, and pertinent details of support and operational procedures. All required actions have been accomplished and the terms of reference have been superseded.

(a) The organization of MSC is structured to provide prompt and efficient means for accomplishing the ocean transportation, fleet support, and ships for purposes other than transportation (such as research), and to meet the requirements of the Department of Defense including sufficient flexibility to permit ready transition from peacetime to war or other emergency operations.

(b) Under the Commander, Military Sealift Command, with the headquarters at Washington, D.C., are area commands, with headquarters as follows: Eastern Atlantic and Mediterranean (MSCELM), Bremerhaven, Germany

Atlantic (MSCLANT), Bayonne, New Jersey Pacific (MSCPAC), Oakland, California Far East (MSCFE), Yokohama, Japan Subarea commands and MSC offices have been established at seaport locations within area commands. MSC offices are subject to inactivation or relocation as circumstances warrant to meet the sea transportation needs of the Department of Defense cargo and personnel.

(c) The MSC fleet is composed of Government-owned ships which are public vessels and are designated U.S. Naval Ships (USNS). This fleet is comprised of dry-cargo ships, tankers, special-project ships, and fleet-support ships, all civilianmanned. Operational and administrative control of this fleet, with the exception of tankers, is accomplished by MSC area commands. Tankers are controlled at MSC headquarters, Washington, D.C.

(d) Augmentation of MSC USNS fleet capability is accomplished by shipping less-than-shipload lots of cargo in commercially-operated berth line merchant ships under the terms of MSC Shipping Agreements or MSC Shipping Contracts, and by the chartering of commercial ships, dry-cargo ships and tankers. Chartered ships are under the operational control of MSC and become part of the MSC controlled fleet during the tenure of the charters. Merchant ships activated from the National Defense Reserve Fleet to meet emergency needs are placed under MSC operational control by means of U.S. Maritime Administration General Agency Agreements (GAA).

(e) The negotiation, execution, and administration of ship charters are accomplished at MSC headquarters, Washington, D.C. Negotiation and execution of MSC shipping agreements and shipping contracts are also accomplished at MSC headquarters. However, the administration of these contracts is the responsibility of MSC area commanders. Policy concerning MSC operation and maintenance of National Defense Reserve Fleet ships is also determined at MSC headquarters; scheduling and other operational matters for these ships are accomplished at MSC area commands.

(f) The public may secure information, make submittals, requests, or obtain decisions on matters affecting the public which concern MSC use of commercial shipping or other matters relative to the administration of MSC, either in person or by telephone during regular working hours, or by mail or telegram. The mail address and points of contact where in