"Security Classification of Official Information," December 31, 1964, and DoD Directive 5200.1, "Safeguarding Official Information in the Interests of the Defense of the U.S.," July 8, 1957.

(2) Receive all completed forms, review or screen them for completeness and irregularities, and maintain at DDC the central authority file of eligible

users.

(3) Provide the central file with a DD Form 1541 to certify the security classification of information for which an applicant contractor facility is cleared to receive and store DoD classified materials.

(4) Report immediately to the central file any change affecting the facility clearance through submission of a revised DD Form 1541.

(5) Expeditiously notify affected dissemination activities of each new eligible user, along with conditions and scope of coverage, and of any subsequent changes thereto. The central file will also answer specific inquiries from dissemination activities for certification data.

(6) Release information products from DDC to eligible users as follows:

(i) Unclassified technical information in all subject fields-of-interest listed on DD Form 1540 subject to any approvals that may be required for controlled information.

(ii) Classified technical information in those subject fields-of-interest authorized on DD Form 1540 and in accordance with any approvals that may be required for controlled information.

(7) Refer certification matters to the Director of Technical Information, Office of the Director of Defense Research and Engineering, in instances where approval or decision of that office is required.

(8) Revise and maintain the Industrial Security Manual and related seci1rity procedures in conformance with this Part.

(b) Each DoD component conducting, administering, or sponsoring R.D.T. & E. work will:

(1) In advance of requesting reports or information from dissemination activities, submit to DDC an approved DD Form 1540 with only Part I and Part III of the form completed.

(2) Review, approve, modify, or disapprove DD Form 1540 submitted by

non-DoD activities or organizations under its cognizance. Personnel selected to authorize DD Form 1540 shall have the technical competence and familiarity with contractor or grantee programs necessary to judge the subject fields-ofinterest of the applicant.

(3) Instruct and assist, wherever necessary, its sponsored activities in filling out and submitting DD Form 1540.

(4) Promptly report to DDC any changes in the status of previous certification resulting from such events as change in mission of the DoD component, contract termination, and contract or grant revision.

(5) Designate an office at each appropriate level of the organization with responsibility for:

(i) Promulgation and maintenance of procedures which are responsive to this part and applicable security regulations.

(ii) Review of special cases, such as referral of questions on DD Form 1540 data from DDC, and appropriate modification and resubmittal.

(c) Each dissemination activity will, within the scope of its mission, and upon receipt of an eligible user certification from DDC, make its technical information available to that eligible user in accordance with the terms of the certification and the applicable security and distribution controls.

§ 157.6 Agencies outside DoD.

(a) Components of those Executive Branch Agencies (non-DoD) who participate in the Industrial Security program of DoD and who are in need of technical information, or whose contractors or grantees need such information, will follow the procedures prescribed for DoD components in § 157.5 (b).

(b) Components of those Executive Branch Agencies (non-DoD) who do not participate in the Industrial Security program of DoD and who are in need of technical information, or whose contractors or grantees need such information, shall make specific arrangements with DSA for certification of DD Form 1540 and DD Form 1541.

(c) Components of the Legislative and Judicial Branches, their contractors, and their grantees in need of unclassified information may process the portion of DD Form 1540 indicated for unclassified information and submit it directly to the Defense Documentation Center. Certification for classified information, if

163.104-1 Unilateral determinations.

163.104-2 Amount fixed unilaterally.

163.105

163.106

163.106-1

Memorandum of pricing agreement; refunds.

Demand.

Routine offset.

Bankruptcy reporting.

AUTHORITY: §§ 163.1 to 163.97 issued under R.S. 161, sec. 2202, sec. 301, 702(d), 64 Stat. 800, 816, as amended, secs. 2307, 7364, 70A Stat. 131, 455, as amended, sec. 1, 72 Stat. 972; 70A Stat. 120; 5 U.S.C. 301, 10 U.S.C. 2202, 50 U.S.C. App. 2091, 2152(d), 10 U.S.C. 2307, 7364, 50 U.S.C. 1431, E.O. 10480, 18 F.R. 4939, 3 CFR, 1953 Supp., E.O. 10789, 23 F.R. 8897, unless otherwise noted.

except as provided in § 163.69-2 or as otherwise indicated herein. The term "financing" as used in this part covers Government guaranteed loans, advance payments and progress payments (not including partial payments for delivery of one or more completed units called for under a contract) necessary for both performance and termination purposes, to the extent authorized by law. Subpart F of this part covers the ascertainment and collection of contract debts.

[27 F.R. 2831, Mar. 28, 1962]

§ 163.2 Purposes.

This part is intended to (a) state basic contract financing policy, (b) assure proper uniformity in policies procedures and forms, (c) provide for appliIcation of the fundamental management principle of internal check and balance, (d) insure that the need for advance or progress payments by contractors will not be treated as a handicap in awarding contracts, (e) facilitate and accelerate the making of progress payments requested by small business concerns under Government contracts, and (f) emphasize the usefulness and desirability of providing proper contract financing assistance to small business concerns. In addition, Subpart F of this part provides for the prompt ascertainment and timely collection of contract debts owed to the Department of Defense, provides an inducement for prompt payment by requiring the charging of interest on such indebtedness, states policies governing postponement of payments and covers compromises and other actions on certain claims pursuant to the Federal Claims Collection Act of 1966.

[32 F.R. 11950, Aug. 18, 1967]

§ 163.3 Application.

This part supersedes ali regulations, directives, procedures, and instructions inconsistent herewith. This part applies throughout the Department of Defense. Within this part, the words "Department," "Military Department," "Procuring Activity," and "Secretary," have the same meanings as those defined in §§ 1.201-5, 1.201-6, 1.201-14, and 1.20115 of this chapter.

[32 F.R. 11950, Aug. 18, 1967]

Finance Committee, in the manner contemplated by §§ 163.12-3 and 163.32. [32 F.R. 11950, Aug. 18, 1967]

Subpart A-Introduction

SOURCE: The provisions of this Subpart A appear at 25 F.R. 14403, Dec. 31, 1960, unless otherwise noted.

§ 163.5 Scope of subpart.

This subpart describes the methods of contract financing by guaranteed loans, advance payments and progress payments, and states basic authority and responsibilities.

§ 163.6 Guaranteed loans-authority.

(a) Under section 301(a) of the Defense Production Act of 1950, as amended, and section 301 of Executive Order No. 10480, as amended by Executive Order No. 11062, and DoD Directive No. 5100.34, the Department of the Army, the Department of the Navy, the Department of the Air Force, and the Defense Supply Agency, among others, are designated as "guaranteeing agencies," and authorized by section 302(a) of Executive Order No. 10480 "to guarantee in whole or in part any public or private financing institution (including any Federal Reserve Bank), by commitment to purchase, agreement to share losses, or otherwise, against loss of principal or interest on any loan * which may be made by such financing institution for the purpose of financing any contractor, subcontractor, or other person in connection with the performance of any contract or other operation deemed by the guaranteeing agency to be necessary to expedite production and deliveries or services under Government contracts for the procurement of materials or the performance of services for the national defense, or for the purpose of financing any contractor, subcontractor, or other person in connection with or in contemplation of the termination, in the interest of the United States of any contract made for the national defense."

(b) As defined in section 702 (d) of the Defense Production Act of 1950, as amended, "the term 'national defense' means programs for military and atomic energy production or construction, military assistance to any foreign nation, stockpiling, and directly related activity."

[32 F.R. 11950, Aug. 18, 1967]