ward whose union duties are incidental to his assigned job.

(e) If an installation/activity commander denies entry to a labor representative for any reason, he shall immediately notify the Labor Advisor (see § 602.050) giving reasons for denial, including the names and addresses of representatives denied entry and the union affiliation of the representatives if known.

(f) The above provisions concerning organization of private Contractor's employees shall be distinguished from those involving organization of Federal civilian employees. For the functions, duties, and obligations of an installation/activity commander regarding Federal civilian employee unions, see Civilian Personnel Regulation (CPR) 711.

§ 602.101-51 Affect of work stoppage on award of new contract.

Prior to award of a new contract, or increasing quantities under an existing contract, to a contractor whose plant is either on strike or is confronted with an imminent strike, the contracting officer or, when appropriate, the DCAS regional representative, shall solicit an apprisal from the regional Federal Mediation and Conciliation Service office as to how such action would affect negotiations. In the event the Federal Mediation and Conciliation Service is not participating in the negotiations, guidance shall be sought from the Labor Advisor. In support of the policy of freedom of negotiations and impartiality, personnel shall avoid a course of action which would either disturb that freedom or be construed as giving support or assistance to either party to the labor dispute.

§ 602.102 Overtime.

§ 602.102-4 Approval of overtime premiums in certain cost-reimbursement type contracts.

The following individuals are designated, without power of redesignation, to grant approvals described in § 12.102-4 of this title

(a) Each head of procuring activity, his deputy, and principal assistant responsible for procurement;

(b) Each project manager;

(c) The Chief of Research and Development;

(d) The Director of Research and Development, U.S. Army Materiel Command;

(e) The Director of Army Research and Chief, Research Support Division, Office of the Director of Army Research; and

(f) Such others as may be specifically designated from time to time by the Deputy for Materiel Acquisition, Office of the Assistant Secretary of the Army (Installations and Logistics). [34 FR 9526, June 18, 1969, as amended at 37 FR 7088, Apr. 8, 1972]

Subparts B-E-[Reserved]

Subpart F-Walsh-Healey Public Contracts Act

§ 602.604 Responsibilities of contracting officers.

Requests for determinations by the Department of Labor pursuant to § 12.604 (a) of this title shall be forwarded through the cognizant head of procuring activity to the addressee in § 602.050. A determination by the Department of Labor that a bidder or offeror is a "manufacturer" or a "regular dealer" is conclusive. Such determination does not, however, relieve the contracting officer of his duty of determining a bidder's or offeror's responsibility pursuant to § 1.904 of this title.

§ 602.606 Procedure for obtaining exemptions with respect to stipulations required by the act.

(a) Contracting officers shall insure that an application from a contractor for an exception under section 6 of the act clearly states

(1) The nature of the exception requested;

(2) The need for the exception; and (3) Any action taken by the contractor to avoid the necessity for the exception.

(b) Contracting officers shall review each application as to

(1) The urgency of the particular procurement;

(2) The relation of existing production schedules to Department of the Army requirements;

(3) The relation of present and past deliveries to production schedules;

(4) The extent to which labor supply is a limiting factor in production and the reasons therefor;

(5) The steps, if any, taken either by the contractor or by any Government agency to resolve the labor supply problem;

(6) The extent to which factors inherent in the production processes involved necessitate the requested exception; and

(7) The extent to which the productive capacity of the facility or facilities

in question is being used for Army procurement.

(c) After reviewing the contractor's application, the contracting officer shall forward it through the cognizant head of procuring activity to the addressee in § 602.050 together with

(1) A statement of pertinent data; and

(2) His findings and recommendations in the matter.

Subpart G-Fair Labor Standards Act of 1938

§ 602.701 Basic statute.

The Act is applicable within the United States, its territories and possessions, and to the Bermuda defense area leased to the United States in 1940. The provisions of section 6, relating to minimum wages, and section 7, relating to overtime compensation, do not apply to certain categories of employees enumerated in the Act nor under certain circumstances enumerated therein.

§ 602.702 Suits against Government contractors.

In the event of any legal action based upon the Act under a cost-reimbursement contract, which may result in claims for increased allowable costs against the Government, the contracting officer shall

(a) Immediately require the Contractor to furnish him with a copy of all papers pertinent thereto; and

(b) Make an immediate report of the legal action direct to the addressee in § 591.150(b)(2) of this chapter (also see AR 27-45).

§ 602.750 Regulations of the Administrator of the Employment Standards Administration in the Department of Labor.

The Act provides that the Administrator in the Department of Labor shall by regulation define certain terms used in the Act and may grant certain exemptions from its provisions. These regulations should be consulted in these respects; however, no action should be taken without first obtaining legal counsel.

[34 FR 9526, June 18, 1969, as amended at 37 FR 25927, Dec. 6, 1972]

Subpart H-Equal Employment Opportunity

§ 602.804 Equal opportunity clauses.

When the Equal Opportunity clause set forth in § 12.804(a) of this title is included in any contract requiring performance overseas where the contractor employs United States, third country, and local nationals, the following preamble to the clause is authorized for inclusion therein

(The following clause is not applicable if this contract is exempt under ASPR 12-805. Exemptions include contracts and subcontracts not exceeding $10,000, and work under contracts and subcontracts which is to be performed outside the United States by employees who were not recruited within the United States.)

[36 FR 20684, Oct. 28, 1971]

§ 602.805 Exemptions.

Requests for exemption from the Equal Opportunity clause made pursuant to § 12.805 (d)(2) and (e)(4) of this title shall be forwarded, together with detailed justification therefor, through the cognizant head of procuring activity, to the addressee in § 591.150(b)(6) of this chapter (see § 591.150(d)). Each intervening level of authority through which the request for exemption is forwarded shall add its recommendation in the matter. [36 FR 8948, May 15, 1971]

Sec. 603.307 Providing Government production and research property when disposal is limited.

Subpart D-Use and Rental of Government Production and Research Property

603.404 Rental rates and policies applicable to the use of Government production and research property.

603.405 Non-Government use of industrial plant equipment (IPE).

603.406 Rent-free use of Government production and research property on work for foreign governments.

Subparts E-F-[Reserved]

Subpart G-Contract Clauses

603.703 Government property clause for cost-reimbursement contracts.

603.704 Special tooling clause for fixedprice contracts.

603.750 Liability for Government property furnished for repair or other services.

Subpart H-Administrative Practices 603.801 Appointment of property administrators.

603.803 Records of Government property. 603.850 Audits of Government property records.

603.850-1 Responsibility for audits. 603.850-2 Reports of audit.

603.850-3 Records in unsatisfactory condition.

AUTHORITY: Secs. 2301-2314, 3012, 70A Stat. 127-133, 157; 10 U.S.C. 2301-2314, 3012. SOURCE: 34 FR 9528, June 18, 1969, unless otherwise noted.

Subpart A-General

§ 603.150 Sale, loan, or gift of certain property (10 U.S.C. 4506).

(a) Heads of procuring activities are authorized to sell, lend, or give such samples, drawings, and manufacturing or other information as are considered in the interest of the national defense to

(1) Any contractor for Army supplies under approved production plans; and (2) Any person likely to manufacture or supply Army supplies under approved production plans.

(b) Such samples, drawings, and manufacturing or other information shall be sold, loaned, or given by appropriate written agreement.

(c) As a general rule, classified material shall not be sold, loaned, or given pursuant to the authority in this section.

(d) In determining whether to sell, loan, or give property under the authority in this section, consideration shall be given to

(1) The current or probable future need of the Government for the property;

(2) The residual value of the property;

(3) Expenses incident to handling and storage of the property;

(4) The probable cost of reproduction of the property in the event of future procurement.

§ 603.151 Loan of Government equipment

acquired for research and development. Heads of procuring activities may authorize the loan of Government equipment acquired for research and development to a private industrial firm or educational institution for use in privately financed research and development programs; Provided, That(a) The programs are of interest to the Government;

(b) The results of the research will be furnished to the Government without additional cost; and

(c) The loan shall be reflected in a written agreement which sets forth the terms of the loan and the benefits to be derived by the Government therefrom.

Subpart B-[Reserved]

Subpart C-Providing Government Production and Research Property to Contractors

§ 603.301 Providing facilities.

(a) Requests for a Secretarial determination pursuant to § 13.301(a)(3) of this title shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b)(6) of this chapter.

(b) New commercially available automatic data processing equipment (ADPE) does not generally qualify as a facility to be furnished by the Government.

(c) The Senior ADPE policy official of the Department of the Army referred to in § 13.301(h)(2) of this title is the Assistant Secretary of the Army (Financial Management).

(d) The Assistant Secretary of the Army (Financial Management) has delegated to heads of procuring activities with power of redelegation to chiefs of purchasing offices certain authority to approve the acquisition of ADPE (see § 591.5102 of this chapter).

(e) Requests for approval for acquisition of ADPE which require approval at secretarial level shall be forwarded to the Assistant Secretary of Defense (Comptroller) through the Office, Assistant Vice Chief of Staff, Department of the Army, address: HQDA (DACS-CM), and shall include the justification specified in § 15.205-48(d) of this title.

[35 FR 18050, Nov. 25, 1970, as amended at 37 FR 25927, Dec. 6, 1972]

Subpart D-Use and Rental of Government Production and Research Property

§ 603.404 Rental rates and policies applicable to the use of Government production and research property.

Requests for authority to charge rent on other than time available for use basis shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b)(6) of this chapter and shall contain justification therefor.

[35 FR 8566, June 3, 1970]

§ 603.405

Non-Government use of industrial plant equipment (IPE).

Requests for approval for non-Government use of industrial plant equipment exceeding 25 percent shall be forwarded through the cognizant head of procuring activity to the addressee in § 591.150(b)(6) of this chapter. [35 FR 8566, June 3, 1970]

§ 603.406 Rent-free use of Government production and research property on work for foreign governments.

A head of procuring activity cognizant of Government production and research property located in the United States, its possessions, or Puerto Rico; his deputy; or his principal assistant responsible for procurement, are authorized to approve requests for use of such property without charge on contracts of foreign governments or subcontracts thereunder, subject to the conditions enumerated in § 13.406 of this title.

Subparts E-F-[Reserved]

Subpart G-Contract Clauses

§ 603.703 Government property clause for cost-reimbursement contracts.

The clause in § 13.703 of this title shall be used in construction contracts under which the Department of the Army is to furnish the contractor material, special tooling, or such facilities as are authorized under § 13.303 of this title.

§ 603.704 Special tooling clause for fixedprice contracts.

The clause in § 13.704 of this title shall be used in negotiated construction contracts in accordance with § 13.305-2(d)(3) of this title.

§ 603.750 Liability for Government property furnished for repair or other services.

(a) The following clause shall be used in contracts for repair or servicing of Government property when such property is furnished to the contractor for that purpose, except when

(1) The Ground and Flight Risk clause in § 10.404 of this title is required; or

(2) ASPR prescribes a different Liability or Loss or Damage clause to be used in specific contracts.

LIABILITY FOR GOVERNMENT PROPERTY FURNISHED FOR REPAIR OR OTHER SERVICES (MAY 1963)

(a) The provisions of this clause shall govern with respect to any Government property turned over to the Contractor to be repaired or to have services performed on it (referred to in this clause as "Government property furnished for servicing"), and such property shall not be considered "Government furnished property" within the meaning of any clause of the contract entitled "Government Property" or "Government Furnished Property." The Contractor shall maintain adequate records and procedures to insure that Government property furnished for servicing may be readily accounted for and identified at all times while in his custody or possession or the custody or possession of any subcontractor.

(b) The Contractor shall be liable for any loss or destruction of or damage to the Government property furnished for servicing caused by the Contractor's failure to exercise such care and diligence as a reasonably prudent owner of similar property would exercise under similar circumstances. The Contractor shall not be liable for loss or destruction of, or damage to, Government property furnished for servicing resulting from any other cause except to the extent that such loss, destruction, or damage is covered by insurance (including self-insurance funds or reserves).

(c) In addition to any insurance (including self-insurance funds or reserves), affording protection in whole or in part against loss or destruction of, or damage to, such Government property carried by the Contractor on