1

the point of final approval for Engineering Development or Operational Systems Development (DoD Instruction 3200.6 "Reporting of Research Development and Engineering Program Information," June 7, 1962) through the completion of production. Defense Contractors' Planning Reports (DD Forms 1401-1, 1401-2, 1401-3) and the Cost Incurred on Contract (DD Form 1177) 1 will not be applied to new aircraft, missile and space system programs, and are hereby canceled and superseded accordingly for such systems. To the extent that these reports are currently in use on existing programs, they may continue to be used on these programs, unless it is considered mutually advantageous to the Government and the contractor to substitute CIR for the above reports.

(b) Certain aircraft, missile, and space systems not qualifying under the dollar guidelines of paragraph (a) of this section, may be specifically recommended by a DoD Component for CIR coverage.

(c) Since total costs of a system covered by this part must be accumulated, data must be collected for all Work Breakdown Structure (WBS) elements, as appropriate, from contractors and/or in-house government development and manufacturing facilities.

(d) The DoD components' cost analysis organization will be responsible for the overall administration of the CIR reporting system. They will receive, edit, process, and store the data received, or they will insure that these activities are properly carried out. They will direct correction of errors by reporting organizations or insure that this direction takes place. They will develop independent cost estimates and will render any other assistance as requested by the Systems/Project Manager, by the contracting office, or other offices whose functions require current and projected costs of aircraft, missiles and space systems. Any special CIR reporting problems will be brought to the attention of the cost analysis organization. § 250.4

Procedures.

(a) For systems proposed for engineering or operational systems development, the WBS elements recommended

1 DD Forms 1177, 1401-1, 1401-2, and 14013 are not filed as part of original document, (Canceled-see 250.3 (a).)

for CIR coverage will be submitted in a Cost Data Plan together with the Technical Development Plan to Director, Defense Research and Engineering in accordance with DoD Instruction 3200.6 "Reporting of Research Development and Engineering Program Information," of June 7, 1962. For existing development systems to which CIR will be applied and for those systems in production, separate Cost Data Plan submissions will be made to the ASD (Comp). The Cost Data Plan will be prepared in accordance with instructions issued by separate memoranda.

(b) Cost Data Plans submitted by the DoD Components will be reviewed by an OSD Cost Data Plan Review Committee composed of representatives from the Offices of the Assistant Secretaries of Defense (Comptroller), (Installations and Logistics), and (Systems Analysis), and from the Office of the Director of Defense Research and Engineering and such other elements of OSD as may be designated by the ASD (Comp). The representative of the ASD(Comp) will serve as Chairman of the OSD Cost Data Plan Review Committee. The ASD (Comp) will be responsible for approval of all Cost Data Plans on the advice and recommendation of the Cost Data Plan Review Committee.

(c) To assure that the data banks maintained by DoD Components, in accordance with DoD Directive 7041.1 "Cost and Economic Information System," July 7, 1964, provide comparable statistical data for the various aircraft, missile and space systems covered by CIR, minimum cost data requirements and reporting frequencies are established by § 250.5, and will be further amplified by separate memoranda. Cost Data Plans for the collection of CIR data will reflect these specified data requirements and reporting frequencies.

(d) All CIR requirements approved by ASD (Comp) will be covered either by a contract with the contractor, or under an in-house agreement with the government facility. Contractually, each CIR form will be identified as a single line entry on the DD Form 14232 (DoD Instruction 5010.12 "Technical Data and Information; Determination of Requirements and Procurement of," May 27, 1964) with the breakdown of the WBS elements and frequencies for each report form shown as an attachment to the DD Form 1423.

(e) If a contract is broken down into individual line items, it should be consistent with the approved WBS. If the

contract is not broken into individual WBS line items, the contract file will contain a copy of the CIR Work Breakdown Structure developed by the DoD Component cost analysis organizations (DoD Directive 7041.1 "Cost and Economic Information System," July 7, 1964), together with cost estimates prepared by the DoD Component for each element.

§ 250.5 Reporting.

(a) Total CIR requirements. Total CIR requirements are contained in DD Form 1558' (Contract Cost Data Summary), 1558-1' (Functional Cost-Hour Report), 1558-2' (Progress Curve Re port), 1558-3' (Fiscal Year Data Summary), and 1558-4 (Fiscal Year Functional Cost-Hour Report). Detailed administrative instructions for the preparation and submission of these forms are contained in the handbook entitled, "Cost Information Reports (CIR) for Aircraft, Missile and Space Systems."

(b) Work breakdown structure (WBS) elements. The WBS elements representing the minimum reporting requirements for each family of weapon/support systems covered by this part will be issued by a separate memorandum.

(c) Dollar guidelines. (1) The Miltary Departments may request contractors to submit all CIR forms, with the approval of ASD (Comp), for WBS elements at a more detailed level than the prescribed minimum list, which account for $15 million or more of the cumulative RDT&E TOA or $50 million or more of the cumulative production TOA.

(2) For those work breakdown structure (WBS) elements which are part of a system to be covered by CIR and which account for less than $15 million of the cumulative RDT&E TOA, or less than $50 million of the cumulative production TOA, the Contract Cost Data Summary, Functional Cost-Hour Report and/or the Progress Curve Report may be required, with the approval of ASD (Comp), if the element is being developed or produced under a separate contract between the government and a prime contractor. The Fiscal Year Data Summary and the Fiscal Year Functional Cost-Hour Report will not be requested for these elements. Requests for CIR.

• Filed as part of original document. Copies may be obtained from contracting: officers.

should not be made on such elements unless they concern items which are being newly developed or which have or relate to specific costing problems which make It clearly in the best interest of the government to obtain such data. Requests for CIR on such elements should not be made on Firm Fixed Price (FFP) contracts except in very unusual circumstances.

(3) The prime contractor will be responsible for reporting CIR data for all the work included in the prime contract, in accordance with the approved Cost Data Plan, even though some of the work may be subcontracted. Subcontractors, however, will be required to prepare selected CIR forms applicable to their contracts, when the WBS element, or portion thereof, under the control of the subcontractor is 10 percent or more of the estimated dollar value of the total program and at least $50 million. When a contractor (prime or sub) is required to report on any WBS element(s) of the system to be covered by CIR, he will be required to submit at least the Contract Cost Data Summary and/or Fiscal Year Data Summary for all WBS elements specified in the approved Cost Data Plan for which he is wholly or partially responsible, regardless of the dollar amounts involved in these WBS elements.

(d) Minimum reporting frequencies. Wherever required, CIR submissions from the contractor should be made to the contracting officer who, within three (3) days after receipt, will forward a copy to the appropriate DoD Component cost analysis organization and to the cognizant office of the Defense Contract Audit Agency. The CIR submission from the contractor will be made within forty-five (45) days after the due date, or in accordance with the provisions outlined in subparagraphs (1) and (2) of this paragraph. When cubcontractors report to the prime contractor, the prime contractor will be given an additional fifteen (15) days to consolidate the appropriate reports. Where contractors' reporting periods end on dates other than the last day of the month, they may be permitted to report in accordance with their respective accounting periods.

(1) RDT&E funding. (1) For each contract of a given program funded from the RDT&E appropriation, the Contract Cost Data Summary, Functional CostHour Report, and the Progress Curve Report are to be prepared at least semi

annually, normally as of June 30 and December 31. Following delivery of the last prime item, a report marked "Preliminary Final Report" will be submitted as of the end of the month in which that item was delivered and accepted. In addition:

(a) For all cost-plus-fixed fee contracts, reports marked Final Report will be submitted when cumulative costs incurred have reached 98 percent of the estimate at completion; however, when subsequent contract modifications exceed $10 million or 5 percent of the contract value (whichever is larger) as of the last report submitted, reporting will be continued as described in this paragraph (d).

(b) For all incentive contracts (CPIF, FPI) under which items are being delivered, reports marked "Final Report" will be submitted at the end of the month during which the final price revision is signed by the Contractor and Government.

(11) The Fiscal Year Data Summary and the Fiscal Year Functional CostHour Report, when required, are to be submitted annually. The appropriate DoD Component shall provide necessary guidance to the submitting contractor with respect to the scope of the program to be reported and date for submission.

(2) Procurement funding. When contracts are funded from procurement appropriations, all reports except the Progress Curve Report will be submitted annually. The Progress Curve Report will be submitted semiannually. In addition, reports will be submitted in accordance with the provisions of subparagraph (1)(i) (a) and (b) of this paragraph.

§ 250.6 Audit reviews.

Audit reviews of CIR data will be performed by the Defense Contract Audit Agency. The scope and extent of such reviews will consist of (a) an evaluation of the effectiveness of the contractor's policies and procedures to produce data compatible with the objectives of CIR, and (b) selective tests of the reported data. Any exceptions will be included with appropriate comments in the audit reports.

This part establishes policies and procedures for the utilization of offshore public lands by the Department of Defense. Consistent with the conclusions and recommendations of U.S. Navy/U.S. Air Force Study Identifying Alternatives to Existing Offshore Ranges, April 7, 1966, as modified and approved by the Assistant Secretary of Defense (Installations and Logistics), this directive will serve as the basis for the establishment of a comprehensive Offshore Military Activities Program.

§ 252.2 Applicability and scope.

(a) The provisions of this part apply to all components of the Department of Defense; and concern utilization for military purposes of the air space above, the surface, subsurface, and seabed of the Outer Continental Shelf and, when necessary, State controlled offshore submerged lands which are used for military purposes.

(b) The policies and procedures established by DoD Directive 4165.6, "Real Property Acquisition, Management and Disposal," September 15, 1955 (20 F.R. 7113), and DoD Instruction 4165.12, "Prior Approval for Real Property Actions," February 6, 1967,1 are in no way modified by the provisions of this part.

(c) The responsibilities of the Secretary of the Navy arising by reason of the provisions of the Marine Resources and Engineering Development Act of 1966, 80 Stat. 203, Public Law 89-454 are in no way limited by this Directive. Furthermore, the Secretary of the Navy shall serve as the representative of the Department of Defense on matters for which he is assigned responsibility pursuant to Public Law 89-454; he shall keep the ASD (I&L) fully informed of programs planned or developed and actions

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

taken in this connection, so that consistency may be maintained between the Marine Resources Program and the Offshore Military Activities Program.

(d) In the administration of navigation law with respect to navigation permits, the Corps of Engineers as a matter of general policy conducts liaison with the Military Departments prior to the issuance of a public notice in regard to a proposed establishment of danger zones, fairways, or anchorages and prior to granting drilling permits in the offshore area to insure compatibility with the Offshore Military Activities Program. § 252.3 Policy.

The Department of Defense supports the basic principle that public lands comprising the Outer Continental Shelf and State controlled offshore submerged lands should be utilized or, to the extent feasible, be co-utilized in the highest national interest. It is essential that the Department of Defense utilize substantial portions of such lands to maintain the effectiveness of its force structure; however, it is the policy of the Department of Defense that in utilizing offshore public lands, the Department of Defense will make use of the minimum amount of such lands as are essential for military purposes and will accommodate, on a shared-use basis nonmilitary interests to the maximum extent determined to be militarily and economically feasible.

(a) Upon determination by the Department of the Interior, or the coastal States, that the mineral potential of certain offshore public lands presently or proposed to be utilized for military purposes is of such importance that making such lands available for mineral production is highly desirable, the Department of Defense will endeavor to accommodate to the maximum feasible extent the Joint military-commercial utilization of submerged lands.

(b) In the event it is determined that nonmilitary interests cannot be accommodated without degradation of military programs not acceptable to the Department of Defense and alternatives are not available or are economically or militarily infeasible, the Department of Defense will endeavor to reach agreement with the Department of the Interior or the coastal States, as applicable, to ex

(1) Develop and maintain a comprehensive program for the military use of the offshore environment to meet the objectives of the policies established herein and will provide direction and guidance to the military departments, as appropriate.

(2) Review and judge programs of the military departments designed to meet the objectives of policies established herewith.

(3) Negotiate, with the advice and assistance of the appropriate military departments, and enter into such administrative arrangements and agreements with the Department of the Interior and the coastal States as may be necessary to assure that their leasing plans and programs remain compatible with Department of Defense missions. Each interested military department shall be notified as soon as such negotiations or preliminary discussions are contemplated, given the option of attending any negotiations or discussions in an advisory capacity, and in any case be informed fully of the results thereof.

(4) Conduct continuing liaison with the Department of the Interior and appropriate coastal States to insure harmonious relationships between their programs and those programs of the Department of Defense which must be carried out on or over offshore public lands; and further inform concerned military departments of new developments in mineral leasing plans of the Department of the Interior, coastal States and those industry programs of significance to current or foreseeable military interests in offshore public lands.

(b) Under the general direction of the ASD (I&L), the military departments will:

(1) Review proposed mineral leasing maps of the Department of the Interior and the coastal States and advise ASD (I&L) of areas proposed for lease which could be incompatible with military missions, and recommend conditions and stipulations which should be imposed in leases to assure the integrity of military missions and otherwise protect the inter

ests of the United States against claims arising out of damage to property and/or injury to nonmilitary persons.

(2) Establish and maintain lines of communication and coordination so that each of the military departments are fully cognizant of plans, programs, and negotiations of other military departments with respect to offshore public lands, to assure compatibility within the entire military framework. Such coordination is hereby authorized and encouraged.

(3) Upon receipt of advice from the Corps of Engineers as to intent, conduct liaison with the Corps of Engineers, prior to the issuance of a public notice by the Corps of Engineers in regard to the proposed establishment of danger zones, fairways and anchorages, or the issuance of permits for offshore drilling to ensure the compatibility with offshore defense programs.

(4) Maintain a continuing review of military programs and weapon systems to support recommended amendments or addenda to U.S. Navy/U.S. Air Force Study Identifying Alternatives to Existing Offshore Ranges, April 7, 1966, and take other appropriate action with respect thereto with the approval of the Assistant Secretary of Defense (I&L).

(5) Inform the Department of the Army (Office of the Chief of Engineers) of any change in the status of Shared Use Areas, Temporary Exclusive Use Areas, and Extended Exclusive Use Areas.

(6) Develop legislation, when requested by the ASD (I&L) pursuant to Public Law 85-337 (43 U.S.C. 156), to restrict against operation of the mineral leasing provisions of the Outer Continental Shelf Lands Act.

(7) Conduct other activities related to the offshore environment as requested by the ASD (I&L).

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