The purpose of this Part 167 is to (a) provide a method for the joint negotiation of reasonable and uniform cost allowance of independent research and development expense of certain contractors performing work for more than one military department; (b) establish the Armed Services Research Specialists Committee which will, when requested by the sponsoring military department, review and assure that contractors have made a proper segregation between their independent research and their independent development programs and which will report to the sponsoring military department the determinations of the Committee concerning the scientific and technical factors which influence the extent to which such programs should be supported; and (c) provide for the assignment of responsibility to a single military department to act as the sponsoring department in the conduct of joint negotiations on the allowability of such contractor's independent research and development costs.

(a) Section 15.107 of Subchapter A of this Title 32 (Rev. 2 November 1959) provides for "advance understandings on particular cost items," including "research and development," particularly those aspects relating to "reasonableness and allocability." Specifically, it provides in pertinent part:

In order to avoid possible subsequent disallowance or dispute based on unreasonableness or nonallocability, it is important that prospective contractors, particularly those whose work is predominantly or substantially with the Government, seek agreement with the Government in advance of the incurrence of special or unusual costs in categories where reasonableness or allocability are difficult to determine. Such agreement may also be initiated by contracting officers individually, or jointly, for all defense work of the contractor, as appropriate.

(b) Section 15.205-35 of Subchapter A of this Title 32 (Rev. 2 November 1959) covers allowability of "Research and Development" Costs, and includes:

(h) The reasonableness of expenditures for independent research and development should be determined in light of all per

tinent considerations such as previous contractor research and development activity, cost of past programs and changes in science and technology. Such expenditures should be pursuant to a broad planned program, which is reasonable in scope and well managed. Such expenditures (especially for development) should be scrutinized with great care in connection with contractors whose work is predominantly or substantially with the Government. Advance agreements as described in § 15.107 of Subchapter A, Title 32 are particularly important in this situation. In recognition that cost sharing of the contractor's independent research and development program may provide motivation for more efficient accomplishment of such program, it is desirable in some cases that the Government bear less than an allocable share of the total cost of the program. Under these circumstances, the following are among the approaches which may be used as the basis for agreement: (i) review of the contractor's proposed independent research and development program and agreement to accept the allocable costs of specific projects; (ii) agreement on a maximum dollar limitation of costs, an allocable portion of which will be accepted by the Government; (iii) an agreement to accept the allocable share of a percentage of the contractor's planned research and development program.

§ 167.3 Establishment of the Armed Services Research Specialists Committee.

(a) An Armed Services Research Specialists Committee is hereby established to review, when requested by the negotiator representing the sponsoring department, the independent research and development programs of defense contractors and to determine whether there has been an adequate segregation between the independent research and independent development programs of such contractors who are doing business with more than one department and who seek to recover the costs of such research and development programs in procurements of the Department of Defense. In carrying out its responsibilities, the Committee will utilize, where appropriate, the services of other research specialists. The Committee shall report and make recommendations directly to the sponsoring department on the scientific and technical factors affecting the basis or extent to which such programs should be supported.

(b) The Committee shall consist of the following:

Office of Secretary of Defense: A designee of the Director of Defense Research and Engineering.

Department of the Army: A designee of the Chief of Research and Development. Department of the Navy: A designee of the Chief of Naval Research.

Department of the Air Force: A designee of the Commander, Air Research and Development Command.

(c) The designee of the Director of Defense Research and Engineering shall serve as the Chairman of the Committee. The Committee shall be responsible to the Director of Defense Research and Engineering through its Chairman.

(d) When the negotiator has determined that independent research and development program of a contractor warrants review, the Committee shall review such programs to assure that development work is not classified as "research". The Committee shall report to the sponsoring department its findings and recommendations concerning the scientific factors considered to affect the basis or extent to which such research and such independent development relating to procurement within the product line of the contractor, should be supported by the Department of Defense. Where a contractor's normal course of business does not involve production work, the recommendation shall relate to the development work falling within the contractor's field of effort of Government research and development contracts.

§ 167.4 Single assignment for joint negotiation of research and develop

ment costs.

(a) The military departments shall agree to and designate a single department (herein called the sponsoring department) to conduct negotiations with the contractor on the allowability of independent research and development costs in all cases where such costs are substantial in amount, a substantial portion of the contractor's business is with the Department of Defense, and the con

(a) Contractors doing business with more than one department and seeking reimbursement for independent research and development expense may be required to submit copies of a brochure describing each research and development project and indicating the amount of money budgeted for each project. Normally, the brochure will be submitted to the sponsoring department before the beginning of the contractor's fiscal year in which the cost is to be incurred, or at least within the first 90 days of such fiscal year.

(b) The Armed Services Research Specialists Committee will, when requested, review the brochures to assure that there is adequate segregation between research and development. The Committee will then recommend to the negotiator of the sponsoring department the extent to which it is reasonable to support such programs.

(c) The sponsoring department will establish a time and place, if necessary, for the conduct of the negotiations with the contractor. Other procuring activities having contracts with the contractor will be advised of the pending negotiations and invited to participate. If such procuring activities do not have representatives at the negotiation, they will be deemed to have waived participation. The results of the negotiation will, in any event, be binding upon each department having contracts with the contractor.

(d) In the event that the above procedures have not been effectuated prior to the incurring of costs by the contractor for an independent research and development program, such procedures are available and are to be used in a later review.

To establish a uniform Department of Defense policy governing transportation and accommodations, as set forth in §§ 171.3 to 171.5, for military personnel, their dependents, civilian employees and their dependents when traveling via commercial, government or private

transportation within, to, from, or outside the continental United States at Government expense. Basic authority for the movement of military personnel and their dependents is contained in the Career Compensation Act of 1949 as amended (63 Stat. 813), implemented by the Joint Travel Regulations. Basic authority for movement of civilian employees and their dependents is contained in section 1 of the Administrative Expenses Act of 1946, as amended (60 Stat. 806), implemented by Standardized Government Travel Regulations promulgated by the Bureau of the Budget.

§ 171.2 Scope and applicability.

der the laws of the United States will be used unless the nonavailability of such aircraft or ships, or the exigencies of the mission, require the use of aircraft or ships registered under foreign flag (aircraft registered under laws of the United States and operated under certificates or permits held by foreign air carriers will be considered foreign flag carriers).

(b) Government transportation. Consistent with the chartered responsibilities of Military Sea Transportation Service and Military Air Transport Service to provide transportation service for all military agencies, the employment of commercial transportation to, from, between and within areas outside the United States shall not take precedence over the efficient and economic utilization of the military-owned transportation resources of Military Sea Transportation Service and Military Air Transport Service which have been approved by the Secretary of Defense as essential to national security.

(c) Private transportation. (1) Private transportation may be used for travel to be performed at personal expense on a reimbursable basis, by military personnel and their dependents within the continental United States or between the United States and Alaska, Canada (including the Province of Newfoundland), and Mexico, or

(2) When travel is authorized to be performed by privately owned conveyance by civilian employees and their dependents on a reimbursable basis.

(d) Minimum standards. Nothing herein will be construed as preventing passengers from accepting accommodations with less than stated minimum standards as shown in § § 171.3 to 171.5 when they meet the requirements of the Services and/or the traveler. Also, nothing in this part will be construed as preventing the Government from furnishing accommodations with less than stated minimum standards for military and civilian personnel when it has been determined by the Service concerned that exigencies of the service require use of such accommodations.

(e) Civilian employees traveling at government expense. Civilian employees will not be required to travel via any particular mode of transportation, commercial or military, when the travel order

includes a specific statement excluding such mode of transportation. The official requesting the order shall be responsible for this statement after consideration of justification presented by the employee.

(f) Selection of mode of transportation to be used. All orders or other travel instructions which authorize a choice or determination between more than one mode of travel will be interpreted by the transportation officers in accordance with these instructions. In cases where two or more modes are available, the service (or transportation officers thereof) sponsoring the travel will determine the mode to be used, giving due consideration to all the facts in the case, including the desires of the traveler. § 171.3 Air transportation.

(a) Commercial air transportation(1) Use of scheduled air carrier within the continental United States. (i) Individuals will be provided first-class air transportation, which is offered to the general public as first-class.

(ii) Persons traveling in a group travel status of 3-to-14 will be provided coach class or tourist air accommodations when available and the service and schedule meets the requirements. If coach class or tourist air accommodations are not available first-class accommodations will be provided.

(iii) Persons traveling in groups of 15 or more will be provided transportation via scheduled air carriers meeting the standards of service required in Part 184 of this subchapter. Arrangements for the movement of 15 or more persons will be made by the appropriate headquarters designated by the military service concerned.

(2) Use of scheduled air carriers to and from and outside the continental United States. (i) Military and civilian personnel traveling in an individual status or in groups of 14 or less will normally be provided first-class air transportation.

the

(ii) Persons traveling in groups of 15 or more will be provided accommodations in accordance with the standards of service set forth in Part 184 of this subchapter. Arrangements for movement of 15 or more persons will be made by the appropriate headquarters designated by the military service concerned.

(3) Use of sleeper-type aircraft, within, to and from and outside the con

tinental United States. (1) When the use of sleeping accommodations are necessary for the successful accomplishment of the mission, the travel orders will include such authorizations.

(ii) When sleeping accommodations are authorized, sleeping accommodations of the lowest rate in effect on the aircraft to be utilized will be furnished. If, at the time reservations are made, sleeping accommodations of the lowest rate are not available, sleeping accommodations of the lowest rates which are available will be furnished.

(4) Use of supplemental carriers. (i) Services provided by Supplemental Air Carriers are considered coach-type air transportation and do not constitute first-class accommodations. Supplemental Air Carriers may be considered for individual or group travel of 14 or less persons subject to the following conditions:

(a) The schedule of the proposed flight is satisfactory and will assure arrival to meet requirements of the travel orders.

(b) Accommodations on the aircraft to be used are considered comparable to recognized standards of coach-type service with respect to comfort and sanitation, and

(c) Use of such supplemental air carriers otherwise meets military requirements and is acceptable to personnel in an individual travel status.

(ii) Person traveling in groups of 15 or more within the Continental United States will be provided accommodations meeting as near as possible the standards of the Joint Military Passenger Agreements with the Air Carrier Associations.

(iii) Persons traveling in groups of 15 or more to, from, and outside the Continental United States will be provided accommodations in accordance with the standards set forth in Part 184 of this subchapter.

(5) Use of Supplemental Air Carriers, to, from, and outside the United States. The services of Supplemental Air Carriers may be considered for group travel of 15 or more. The accommodations provided will be in accordance with the standards set forth in Part 184 of this subchapter.

(b) Government air transportation within, to and from, and outside the United States-(1) Use of Government air transportation. Government air

transportation includes all governmentowned, leased, contract or charter aircraft operated by or for one or more of the Military Services.

(i) Government-owned aircraft. An aircraft owned by the United States government and operated by the Department of Defense.

(ii) Government-chartered or Government-contract aircraft. An aircraft hired from a commercial source for the exclusive use of the Government for one or more flights.

(2) Accommodations. (i) As a general rule, transport type aircraft operating on scheduled or semi-scheduled service with troop seats and safety devices is considered adequate, with the following exceptions:

(a) When military or civilian personnel are accompanied by dependents. (b) When individuals are of General or Flag rank, or equivalent civilian status.

(ii) Female passengers and dependents with or without accompanying sponsor will be provided air transportation on scheduled aircraft equipped with upholstered seats and enclosed toilet facilities. Should dependents refuse this accommodation, surface transportation will be provided for such persons. Under such conditions a refusal by the dependent to travel by air, when the exigencies of the service dictate that the principal travel by air, may also be considered as waiving the provisions for nonseparation of families.

(iii) Officers of General or Flag rank or civilians of equivalent status, as shown in table of military-civilian relationships contained in Department of Defense Instruction on "Issuance of Identity Cards Required by the Geneva Convention," will be provided air transportation on aircraft equipped with upholstered seats.

(3) Minimum standards. On aircraft equipped to carry General or Flag officers or civilians of equivalent status and/or female passengers, dependents and accompanying sponsor, the following minimum standards are established:

(i) Suitable meals will be available for all passengers.

(ii) A reasonable supply of wash water and potable water shall be aboard the aircraft.

(iii) The configuration of seating arrangements shall be similar to that provided aboard flights of the commercial, passengers, scheduled type opera

tions and the seat spacing shall not be less than the average aircoach space provided by scheduled commercial service.

(iv) Suitable facilities for heating food (formulae) for infants will be available.

(v) Seating arrangements shall be provided on a basis of one seat for each individual, including infants.

(vi) Pressurized cabin aircraft will normally be provided for trans-ocean travel.

§ 171.4 Land transportation.

(a) Definitions. For the purpose of this section the following definitions are applicable:

(1) Individual travel. Travel of all persons under orders which are not specifically designated "group travel order."

(2) Group travel. Three (3) or more military personnel traveling in a group from the same point of origin to the same destination under one order which is specifically designated "group travel order."

(3) First-class transportation. Transportation, exclusive of extra fare trains, which is offered to the general public as first-class.

(4) Lowest first-class accommodations. Except as specifically provided in this part, a lower standard berth shall be considered the lowest first-class rail accommodation for night travel in CONUS.

(5) Coach-class. A type of transportation, not affording sleeping facilities, offered by the rail carriers in the CONUS to the general public at a lesser rate and which is normally used for short journeys or day-time travel.

(6) Bus transportation. A transportation service, offered to the general public by commercial bus carriers, which is normally used for daytime travel when an entire journey can be completed between the hours of 0600 and 2400 of the same day.

(7) Night travel. Any journey which involves travel of four (4) or more hours between the hours of 10:00 p. m. and 6:00 a. m. This definition does not preclude the use of sleeping car service operated between points involving actual running time of less than four (4) hours between the hours specified but allowing occupancy privileges of more than four (4) hours.