via railways, highways, waterways, pipelines, oceans and airways.

§ 192.4 Policy.

(a) Transportability will be a major consideration in:

(1) Formulating the priority of characteristics to be considered in the design of any new or modified item of materiel and

(2) Developing integrated logistics support for systems and equipment (DOD Directive 4100.35, Development of Ingrated Logistics Support for Systems and Equipments, June 19, 1964).1

(b) When planning and designing new or modified materiel, transportability criteria for all possible modes of transportation to be employed shall be considered in order to assure that items are so designed and constructed that they can be efficiently moved by available means of transportation.

(c) Equipment to be developed or procured will be designed so that its outside dimensions and gross weight (axle loads for vehicles) will permit handling, movement, and transfer among the various transportation systems that are or are expected to be available during its operating life.

(d) Only in exceptional cases may equipment be designed which will require special or unique arrangement of schedules, rights-of-way, clearances, or other operating conditions. In addition, equipment may be designed to the capabilities of a specific mode of transportation only when it has been determined that more restrictive modes will not be used.

(e) During the design, development, or modification of equipment which is large, bulky, heavy, or sensitive to shock and vibration, full consideration will be given to transportation, handling, tiedown, and slinging points, to disassembly capability for transportation purposes, ease of on-site reassembly for use, and safety during transportation. Self-propulsion will also be considered in the design where applicable and necessary. § 192.5

Responsibilities.

(a) The Secretaries of the Army, Navy, and Air Force will designate, within existing manpower ceilings, an operating agency at an appropriate level

1 Copies available from Naval Supply Depot, 5801 Tabor Avenue, Philadelphia, Pa. 19120, Attn.: Code 300.

within their respective Departments which will be responsible for:

(1) Issuing, under the sponsorship of the Secretary of the Army, joint Army, Navy, Air Force and Marine Corps regulations implementing this part for uniform use by all DoD components.

(2) Issuing, under the sponsorship of the appropriate Military Department (see DoD Directives 5160.2, Single Manager Assignment for Airlift Service, March 24, 1967 (32 F.R. 6300), 5160.10, Single Manager Assignment for Ocean Transportation, March 24, 1967 (32 F.R. 6300), and 5160.53, Single Manager Assignment for Military Traffic, Land Transportation, and Common-user Ocean Terminals, March 24, 1967 (32 F.R. 5295)), joint transportability criteria covering (1) modes of transportation and terminals, and (ii) pertinent characteristics of transportation equipment.

(3) Ensuring that the transportability of new materiel is determined by field testing during the RDT&E programs and documenting test results for transportability guidance.

(4) Issuing, under the sponsorship of the appropriate Military Department, joint transportability guidance for materiel for which each Military Department has prime responsibility.

(b) The Secretary of the Navy will be responsible for (1) coordinating DoD transportability interests in commonuser ship construction and modification programs with appropriate Federal agencies and (2) integrating the foreseen needs of the DoD Components into these programs.

(c) The Secretary of the Air Force will be responsible for (1) coordinating DoD transportability interests in common-user aircraft construction and modification programs with appropriate Federal agencies nd (2) integrating the foreseen needs of the DoD Components into these programs.

(d) The Secretary of the Army will be responsible for (1) coordinating Do]) transportability interests in commonuser land transportation programs with Federal and State agencies in the United States and with appropriate agencies overseas and (2) integrating the foreseen needs of the DoD Components into these programs. (See Part 193 of this subchapter, concerning coordination of Highways for National Defense matters with Federal and State agencies.)

effort requiring the build-up of capital industries.

§ 194.4 Objectives and policies.

(a) The major objectives to be attained through co-production projects are to: (1) Enable eligible countries to improve military readiness through expansion of their technical and military support capability.

(2) Promote United States-Allied standardization of military materiel and equipment, which, in turn, would generate the establishment of uniform logistics support, procedures and expanded multinational operational capabilities.

(b) Co-production programs directly benefit the United States through:

(1) Creating in-country compatability with the U.S. standardized equipment, thereby creating Allied capability of supporting deployment of U.S. forces.

(2) Promoting the standardization of materiel or equipment to integrate and strengthen international military operations in times of emergency or hostilities.

(3) Encouraging multinational acceptance of strategic and tactical concepts and doctrine through the utilization of common military materiel.

(4) Encouraging the creation of complementary forces in Allied countries.

(5) Establishing or broadening the base for common and interchangeable logistics among free or Allied nations.

(6) Serving to improve procurement, production, contract administration and mutual support capability of friendly Allied nations.

(c) Co-production is considered to be an important component of the U.S. military foreign sales program and, as such, represents an essential element of U.S. foreign policy. Accordingly, it is DoD policy that initiation of co-production project agreements will be encouraged and supported by all elements of DoD under the following circumstances. When they:

(1) Advance the objectives outlined in paragraphs (a) and (b) of this section. (2) Supplement and reinforce the U.S. FMS program.

(3) Are in the best interest of the United States.

§ 194.5 Responsibilities and procedures.

(a) Co-production projects may be initiated by ASD (ISA) or, subject to prior ASD(ISA) approval, by the Military Departments; the Military Assistance Advisory Groups; and by author

ized representatives of foreign governments and international organizations.

(1) The cognizant DoD component will ensure appropriate coordination with ASD (ISA) and furnish technical and negotiating assistance as required.

(2) After the agreement is signed, the appropriate DoD component will perform necessary managerial and reporting functions.

(b) In conformance with responsibillties assigned in DoD Directive 5100.27.

(1) The Assistant Secretary of Defense (International Security Affairs) will:

(i) Develop and coordinate DoD positions for the negotiation of co-production agreements with foreign governments and international organizations; and

(ii) Either conduct negotiations for specific agreements, or delegate this responsibility to an appropriate DoD component.

(2) The Assistant Secretary of Defense (Installations and Logistics) will:

(i) Assure during coordination of formal agreements, that the materiel to be committed under the co-production project will not adversely affect the U.S. defense supply or production base, or further limit critical materiel; that consideration had been given to the future logistical support of the equipment to be produced; and

(ii) Monitor and act as OSD coordinator for implementation of co-production projects under formal agreements, in coordination with other elements of the Office of the Secretary of Defense, as required.

(3) The Office of the General Counsel of the Department of Defense will assure necessary legal clearance, as required, prior to formalization of co-production project agreements.

(4) The Assistant Secretary of Defense (Comptroller) will assist the ASD(ISA) and the ASD (I&L) during coordination, as required, of formal coproduction agreements by providing necessary DoD representation and financial guidance with respect to pricing policies for U.S. military services and equipment, cost sharing, and reporting requirements under co-production agreements as they relate to international balance of payments.

(5) Other OSD organizational elements will assist ASD (I&L), as required, in assuring that the terms and conditions of co-production project agreements are met.

(a) Classified information and materials will be treated as exchanges between those governments involved and will be safeguarded by each government in accordance with existing agreements.

(b) In addition to adherence to existing security agreements, a security annex or clause will be developed as a part of the co-production agreement which will cover all security factors involved. § 194.7 Reports required.

(a) A short narrative type report will be submitted to ASD(I&L) by the cognizant DoD component on a quarterly basis covering all formalized co-production projects and agreements including pending agreements with a high potential of being finalized within the next three (3) quarters. The report will briefly state project, project officer, background highlights, current production and status including anticipated and approximate monetary return to the United States, current problem areas (if any) and future major events or milestones. This reporting requirement has been assigned Report Control Symbol DD-I&L(Q) 834.

(b) This report will be submitted in triplicate to OASD (I&L) by the close of the last working day of the month following the close of the quarter. The first report under this part will cover the quarter ending March 31, 1968, and be due April 30, 1968. In addition, copies will be forwarded to the appropriate Unified Commands and MAAG's of the countries involved. Further distribution may be prescribed by the Military Department concerned.

§ 194.8 Effective date and implementation.

This part is effective immediately and encompasses all coproduction agreements in effect or pending on the date of this part, and such agreements consummated subsequently.

(b) Configuration management. A discipline applying technical and administrative direction and surveillance to (1) identify and document the functional and physical characteristics of a configuration item, (2) control changes to those characteristics, and (3) record and report change processing and implementation status.

(c) Configuration item (CI). An aggregation of hardware/software, or any of its discrete portions, which satisfies an end use function and is designated by the Government for configuration management. CI's may vary widely in complexity, size and type, from an aircraft, electronic or ship system to a test meter or round of ammunition. During development and initial production, CI's are only those specification items that are referenced directly in a contract (or an equivalent in-house agreement). During the operation and maintenance period, any reparable item designated for separate procurement is a configuration item

(d) Configuration control. The systematic evaluation, coordination, approval or disapproval, and implementation of all approved changes in the configuration of a CI after formal establishment of its configuration identification.

(e) Configuration identification. The current approved or conditionally approved technical documentation for a configuration item as set forth in speci

fications, drawings, and associated lists, and documents referenced therein.

(f) Configuration status accounting. The recording and reporting of the information that is needed to manage configuration effectively, including a listing of the approved configuration identification, the status of proposed changes to configuration, and the implementation status of approved changes.

(g) Allocated configuration identification (ACI). Current, approved performance oriented specifications governing the development of configuration items that are part of a higher level CI, in which each specification (1) defines the functional characteristics that are allocated from those of the higher level CI, (2) establishes the tests required to demonstrate achievement of its allocated functional characteristics, (3) delineates necessary interface requirements with other associated configuration items, and (4) establishes design constraints, if any, such as component standardization, use of inventory items, and integrated logistic support requirements.

(h) Base line. A configuration identification document or a set of such documents formally designated and fixed at a specific time during a CI's life cycle. Base lines, plus approval changes from those base lines, constitute the current configuration identification. For configuration management there are three base lines, as follows:

(1) Functional base line. The initial approved functional configuration identification.

(2) Allocated base line. The initial approved allocated configuration identification.

(3) Product base line. The initial approved or conditionally approved product configuration identification.

(1) Deficiencies. Deficiencies consist of two types: (1) Conditions or characteristics in any hardware/software which are not in compliance with specified configuration, or (2) inadequate (or erroneous) configuration identification which has resulted, or may result, in configuration items that do not fulfill approved operational requirements.

(j) Deviation. A specific written authorization, granted prior to the manufacture of an item, to depart from a particular performance or design requirement of a contract, specification, or referenced document, for a specific number of units or specific period of time.

(k) Form, fit and function. That con

figuration comprising the physical and functional characteristics of the item as an entity but not including any characteristics of the elements making up the item.

(1) Functional characteristics. Quantitative performance, operating and logistic parameters and their respective tolerances. Functional characteristics include all performance parameters, such as range, speed, lethality, reliability, maintainability, safety.

(m) Functional configuration audit. The formal examination of functional characteristics' test data for a configuration item, prior to acceptance, to verify that the item has achieved the performance specified in its functional or allocated configuration identification. (n) Functional configuration identification (FCI). The current approved technical documentation for a configuration item which prescribes (1) all necessary functional characteristics, (2) the tests required to demonstrate achievement of specified functional characteristics, (3) the necessary interface characteristics with associated CT's, (4) the CI's key functional characteristics and its key lower level CI's, if any, and (5) design constraints, such as envelope dimensions, component standardization, use of inventory items, integrated logistics support requirements.

(0) Hardware/software. Hardware or software, or a combination of both, in which the software includes only that associated with hardware for operational use, e.g., computer programs for command and control, handbooks for operations, maintenance, etc., and excludes fabrication specifications, drawings, etc.

(p) Key functional characteristics. Those functional characteristics that critically affect the configuration item's satisfactory fulfillment of the operational requirements; for example, a transport aircraft's payload/range characteristics.

(q) Physical characteristics. Quantitative and qualitative expressions of material features, such as composition, dimensions, finishes, form, fit, and their respective tolerances.

and offered to the Government as a production article, with Government control of the article's configuration normally limited to its form, fit, and function.

(t) Product configuration identification (PCI). The current approved or conditionally approved technical documentation which defines the configuration of a CI during the production, operation, maintenance, and logistic support phases of its life cycle, and which prescribes (1) all necessary physical or form, fit and function characteristics of a CI, (2) the selected functional characteristics designated for production acceptance testing, and (3) the production acceptance tests.

(u) Unit. One complete configuration item. For example, one F-111A of a total quantity of 100 F-111A's.

(v) Waiver. A written authorization to accept a 'configuration item or other designated items, which during production or after having been submitted for inspection, are found to depart from specified requirements, but nevertheless are considered suitable for use "as is" or after rework by an approved method.

(w) Work breakdown structure (WBS). A product-oriented family tree, composed of hardware, software, services, and other work tasks, which results from project engineering effort during the development and follow-on production of a defense materiel item, and which completely defines the project/ program. A WBS displays and defines the product(s) to be developed or produced and relates the elements of work to be accomplished to each other and to the end product.

The objectives of configuration management are:

(a) To assist management in achieving, at the lowest sound cost, the required performance, operational efficiency, logistics support and readiness of configuration items.

(b) To allow the maximum degree of design and development latitude yet introduce at the appropriate time the degree and depth of configuration control necessary for production and logistics support.

(c) To attain maximum efficiency in the management of configuration changes with respect to their necessity, cost, timing and implementation.

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(d) To attain the optimum degree of uniformity in configuration management policy, procedures, data, forms and reports at all interfaces within the DoD and between DoD and industry.

195.5 Policy.

(a) General (1) Application. Configuration management, in accordance with this part and Part 195a of this subchapter, shall be applied to all CI's procured for use by the DoD, or obtained through an agreement between in-house activities. The application of configuration management shall be carefully tailored to be consistent with the quantity, size, scope, stage of life cycle, nature and complexity of the CI involved.

(2) Initiation of configuration management. Initiation of configuration management must be consistent with the development/production pattern of the CI involved.

(i) CI's to be developed at Government expense shall be subject to configuration management upon approval for Engineering or Operational Systems Development (DoD Instruction 3200.6, Reporting of Research, Development, and Engineering Program Information, June 7, 1962),1 except that when Contract Definition in accordance with Part 191 of this subchapter is applied, the lower level CI's shall not be subject to configuration management until completion of the Contract Definition. CI's in Advanced Development may be subject to configuration management; however, where applied, the application shall be limited to the control of functional characteristics and shall impose only the minimum necessary design constraints.

(ii) Where privately developed CI's are procured by the Government, configuration management shall be initiated upon establishment of the initial product configuration identification.

(3) Duration of configuration management. Once initiated, configuration management shall continue throughout the CI's life cycle until the CI is removed from the operational inventory. For the purposes of this part operational reserve and storage CI's are considered to be in the operational inventory.

(4) Responsibility for configuration management. DoD Components shall exercise their responsibility for con

1 Copies available from the Naval Supply Depot, 5801 Tabor Avenue, Philadelphia, Pa. 19120, Attention: Code 300.