Headquarters, Air Materiel Command, without authority of further redelegation.

(b) Function and jurisdiction of the Board. The Board, upon written requests of the contractors therefor, will determine true depreciation of emergency facilities for which the Defense Production Administration or the Office of Defense Mobilization issues or has issued Certificates of Necessity, in accordance with the basic principles and other provisions of Part 81 of this title (19 F. R. 4355). The determinations of the Board will be binding upon all Air Force purchasing and contract auditing activities and other military departments (as provided in Part 81 of this title) with respect to the amount of true depreciation which will be used by such activities in computing and allocating depreciation costs of emergency facilities covered by Certificates of Necessity in the contract pricing of negotiated contracts. The Board will designate a liaison representative to act with representatives of the Department of the Army and the Department of the Navy to perform such coordinating functions as may be required under Part 81 of this title.

§ 1021.2 Procedures. (a) Requests for determination of true depreciation with respect to Certificates of Necessity will be submitted by the contractors directly to the Board. In its discretion, the Board may:

(1) Provide for hearing oral presentations by contractors.

(2) Conduct plant visits by its members or representatives.

(3) Develop by other available means the facts required for the making of a determination.

The Board will keep minutes of its proceedings and maintain a permanent record of the facts and other considerations entering into the determinations made. Determinations of the Board will be transmitted by the Board to the contractor concerned, Air Force procurement activities concerned, the Auditor General, Headquarters Liaison Office, Wright-Patterson Air Force Base, Ohio, and the Emergency Facilities Depreciation Board of the Departments of the Army and the Navy.

(b) Requests for determination received by the Board, involving facilities concerning which the Department of the

Army or the Department of the Navy is responsible for the making of determinations of true depreciation pursuant to the provisions of § 81.4 (e) of this title, will be forwarded by the Board to the Emergency Facilities Depreciation Board of the responsible departments. Assignments to each departmental Board will be made in accordance with the provisions of § 81.4 (e) of this title. A liaison committee consisting of one representative to be designated by each Board, in addition to such other functional duties as may be assigned to it by joint action of the three Boards, will make assignments in doubtful cases and will compile and maintain a master assignment list.

§ 1021.3

Contractor information on true depreciation. Requests for determinations of true depreciation submitted by contractors will:

(a) Set forth the information called for by the provisions of Appendix A to this part.

(b) Be signed by a responsible official of the contractor.

(c) Contain the following certification by the official signing the request:

I hereby certify that the information contained in the foregoing request is true and correct to the best of my knowledge and belief.

§ 1021.4 Implementation. Further implementation of Part 81 of this title (including those necessitated by revisions of this part) will be made by the Commander, Air Materiel Command. APPENDIX A-LIST OF CONTRACTOR INFORMATION ON TRUE DEPRECIATION

Information to be submitted by contractors to the Board to support requests for determination of true depreciation on emerquency facilities covered by Certificates of Necessity. The contractor will submit to the Army, Navy, or Air Force Emergency Facilities Depreciation Board (as appropriate), his request for a determination of true depreciation by an original and four copies of items other than item 2, and three copies for item 2. The request will contain the information indicated below. The contractor, to the extent practicable, will include all certificates issued in connection with any individual plant or location which he desires to have considered for determination of true depreciation in connection with defense contracts. The responses to these questions may be in narrative or tabular form as the contractor deems best suited to his circumstances with such amplification as he considers necessary. If the contractor con

2. Photostats or similar facsimiles of Necessity Certificate(s) (Form DPAL-101), and a copy of the application (s) (including supporting documentation) to the Defense Production Administration or the Office of Defense Mobilization therefor.

3. (a) When did you first authorize your expansion program in connection with the Necessity Certificate (s)?

(b) Why did you plan this expansion program?

4. What military contracts and subcontracts do you now have requiring the use of each facility? For each contract and subcontract furnish the following:

(a) Contract number.

(b) Total dollar value.

(c) Undelivered dollar value.

(d) Estimated completion date. (e) Type of contract. (CPFF, CPFF-fixed overhead, fixed price, fixed price-redetermination, fixed price-incentive, etc.)

5. With which military departments or military contractors are you now negotiating or do you expect to negotiate for proposed new procurements? Indicate type of product, end item and estimated dollar amount.

6. Have you requested a determination of "true depreciation" for other facilities from any other military department(s) ? (a) Yes or no.

(b) Department(s).

(c) Certificate file number(s).

7. State for each item or by groups or categories comprising similar type of items on Appendix A of Necessity Certificate(s):

(a) (1) Annual normal depreciation rate currently approved by the Bureau of Internal Revenue for income tax purposes.

(2) Rate at which item is being depreciated by you in your operating accounting records.

(3) Rate being used for military contract pricing.

(d) What plans do you have for the use or disposition of this facility, item, group or category after the emergency period?

(e) Explain to what extent, if any, the facility, item, group or category may cause prospective extraordinary obsolescence of preexisting facilities which are not, in fact, already obsolete.

(f) Describe briefly and state cost of any special construction features included in this facility, item, group or category which were made necessary exclusively by defense production requirements.

8. State any additional information other than that submitted above which should be taken into consideration in making a determination of true depreciation for this facility, item, group or category.

9. State your estimate of true depreciation for each facility, item, group or category and your evaluation of the above facts to support such estimate.

NOTE: Requests for determination of true depreciation, including the information required by this Appendix, will be submitted by the contractor directly to the Air Force Emergency Facilities Depreciation Board at Headquarters, Air Materiel Command, Wright-Patterson Air Force Base, Ohio, Attn: MCPP-7, or to the local administrative contracting officer who will forward it directly to the Board.

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