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Whenever it shall appear that a contracting agency other than the respondent may be concerned in the subject matter of an appeal, the Appeal Board may request the appellant to furnish to the Board for forwarding to such agency copies of the notice of appeal and of the claim, and such other documents or memoranda as the Appeal Board may determine, together with a notice substantially in the following form:

Pursuant to Rule 21 of the Rules of Practice and Procedure of the Appeal Board of the Office of Contract Settlement, and without waiving any rights against any other contracting agency, claim is hereby made against you for the relief specified in the accompanying claim, and demand is hereby made for findings thereon. Pursuant to said rule, said findings may be embodied in a response filed by you in the proceeding, and the filing of a response containing such finding shall constitute delivery of findings to the undersigned.

Appellant

(b) The notice of appeal with such accompanying papers when received by such agency shall be deemed for all purposes, including negotiation and settlement or appeal, to constitute a claim by appellant against such agency and a demand for findings thereon.

(c) Upon the filing with the Appeal Board of a response by such agency, or, if no response is filed by it, then at the expiration of 90 days from the receipt of copy of the notice of appeal by it, such agency shall be deemed a party to the appeal as fully as though the notice of appeal had been originally filed against it after submission to it by the appellant of a claim and a demand for findings. A response filed by such agency within the 90 days shall be considered by the Appeal Board as constituting both findings and response on appeal, and the failure of such agency to file a response within the 90 days shall be deemed by the Appeal Board to be both a failure of such agency to make the

findings demanded and to respond to the notice of appeal.

(d) In the event that such agency considers that it is not a contracting agency responsible for settling appellant's claim or any part thereof within the meaning of section 13 (a), or of section 13 (a) as supplemented by section 17 (c), of the Contract Settlement Act of 1944, and consequently does not intend to negotiate with appellant, it is hereby required, pursuant to sections 4 (b) and 13 (a) (1) of the act, that such agency expedite the proceedings before the Appeal Board by filing its written findings with the Appeal Board, in the form of a response, within 20 days from the receipt of a copy of the notice of appeal by such agency. Neither the filing of such a response nor the omission to do so, within such period, shall affect the determination of the question whether such contracting agency is the agency responsible for settling appellant's claim or any part thereof.

(e) Admission by such agency in its findings and response that it is an agency responsible for settling appellant's claim, or part thereof, shall not of itself deprive such agency of any defense on appeal other than a defense based upon the claim that the agency is not an agency so responsible.

(f) No proceedings pursuant to this regulation shall affect the authority of a contracting agency, which shall have received a copy of a notice of appeal forwarded to it pursuant to this regulation, to make a settlement of the claim by agreement with the appellant at any time before the proceedings before the Appeal Board are concluded.

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Subchapter G-Organization, Functions and Procedures [Added]

PART 8095-GENERAL STATEMENT Sec.

OF ORGANIZATION, AND PROCEDURES

Sec.

8095.1

8095.3 Office of Contract Settlement; procedures.

FUNCTIONS

8095.4 8095.5

Creation and authority.

8095.2 Office of Contract Settlement; or

ganization and function.

Contract Settlement Advisory Board. Appeal Board of the Office of Contract Settlement; organization and function.

8095.6 Appeal Board of the Office of Contract Settlement; procedures.

AUTHORITY: §§ 8095.1 to 8095.6, inclusive, issued under Secs. 4, 101, 58 Stat. 651, 785; 41 U.S.C., Sup., 104, 50 U.S.C., App., Sup., 1651.

SOURCE: §§ 8095.1 to 8095.6, inclusive, contained in Statement, Director, Office of Contract Settlement, effective Sept. 11, 1946, 11 FR. 177A-630.

§ 8095.1 Creation and authority. The Office of Contract Settlement, the Contract Settlement Advisory Board, and the Appeal Board of the Office of Contract Settlement, all exist under the provisions of the Contract Settlement Act of 1944 (58 Stat. 651; 41 U.S.C., Sup., 104), approved July 1, 1944.

Among the subjects dealt with by the act are the principles governing the determination of fair compensation for the termination of war contracts, the prompt clearance from contractors' plants of property connected with terminated contracts, the financing of contractors during the period between the termination of their contracts and their final settlement, and defective, informal and quasi contracts.

By act of Congress approved October 3, 1944 (58 Stat. 785; 50 U.S.C., App., Sup., 1651), the Office of Contract Settlement was placed within the Office of War Mobilization and Reconversion, its functions to be subject to the general supervision of the Director of War Mobilization and Reconversion.

§ 8095.2 Office of Contract Settlement; organization and function. Section 4 (a) of the Contract Settlement Act established the Office of Contract Settlement, which is headed by the Director of Contract Settlement. The Office of Contract Settlement is housed in the Federal Reserve Building, Washington 25, D. C. It has no field organization. The Director's function is to prescribe, by general regulation, policies, principles, methods, procedures and standards for settlement of terminated war contracts and of defective, informal and quasi-contracts under the act. The regulations in this part and amendments thereto are published in the FEDERAL REGISTER in accordance with section 4 (e) of the act. In addition, in accordance with section 20 (d) of the act, directive orders of the Director of War Mobilization relating to the subject matter of the act, remain in full force and effect unless and until superseded by regulations in accordance with the act.

Directive Orders of the Director of War Mobilization

1. Uniform Termination Article: Jan. 10, 1944, 9 F.R. 478.

2. Uniform Termination Article: This directive 2 amends directive 1 and is further amended by Regulations 3 and 5 of the Office of Contract Settlement: Feb. 24, 1944, 9 F.R. 2251.

3. Pricing Policy on Termination Inventory: This directive is obsolete: May 2, 1944, 9 F.R. 5192.

4. Interpretations of Uniform Termination Article: May 2, 1944, 9 F.R. 5192.

5. Settlement Organization of Contracting Agencies: May 2, 1944, 9 F.R. 5193.

6. Settlement of Subcontractors' Claims: This directive is amended by Regulation 6 of the Office of Contract Settlement: June 1, 1944, 9 F.R. 6135.

In accordance with section 4 (d) of the act the Director performs the duties imposed upon him primarily through the personnel and facilities of the contracting agencies and other established Government agencies. In addition, under section 23 (a) of the act, the Director, by delegation, has authorized the Deputy Director to exercise any authority or discretion conferred upon the Director by the act. The Director under section 23 (a) of the act has delegated by Regulation 13 (Part 8042 of this chapter), to the head of each contracting agency, his authority under section 8 (d) to suspend or modify penalty for overstatement in connection with interim financing. In Regulation 15 (Part 8085 of this chapter), the Director, in accordance with section 13 (d) (3) of the act, authorized the Appeal Board to prescribe any amendments to its rules and any further rules of practice and procedure to govern its proceeding.

The public may secure information from or make submittals and requests to the Director, and matters of official record are available at his office to persons properly and directly concerned, except information held confidential for good cause found.

§ 8095.3 Office of Contract Settlement; procedures. All procedural rules made by the Director have been made by general regulation in accordance with section 4 (b) of the act. These primarily concern procedural matters between the public and the contracting agencies and other established Government agencies, although Parts 8060 and 8007 of this chapter make provision for referral of

certain matters from the contracting agencies to the Director. Citation is made to the following regulations relating in part to procedural matters.

Regulations of the Office of Contract Settlement

1. Part 8040, Termination Loans: Aug. 18, 1944, 9 F.R. 10358.

2. Part 8041, Partial Payments: Sept. 8, 1944, 9 F.R. 11275.

4. Part 8050, Plant Clearance: Sept. 28, 1944, 9 F.R. 11964.

8. Part 8075, Standard Contract Settlement Proposal Forms: Oct. 13, 1944, 9 F.R. 12541. 9. Part 8040, Guaranteed Termination Loans: Dec. 9, 1944, 9 F.R. 14501.

10. Part 8051, Plant Clearance: Jan. 24, 1945, 10 F.R. 1279.

11. Part 8076, Microfilming and Destruction of War Contractors' Records: Jan. 24, 1945, 10 F.R. 1280.

12. Part 8060, Claims Under Defective, Informal and Quasi Contracts: Jan. 24, 1945, 10 F.R. 1278.

15. Part 8085, Rules of Practice and Procedure for the Appeal Board: Mar. 23, 1945, 10 F.R. 3132; Amendment No. 1: Apr. 4, 1946, 11 F.R. 3603; Amendment No. 2: Aug. 21, 1946, 11 F.R. 9138.

16. Part 8007, Program for Limited Company-Wide Settlement of Termination Claims: May 29, 1945, 10 F.R. 6249; Amendment No. 1: Aug. 27, 1945, 10 F.R. 11075; Amendment No. 2: Sept. 6, 1945, 10 F.R. 11401. 17. Part 8008, Protection of Termination Claims of Subcontractors: May 29, 1945, 10 F.R. 6250.

18. Part 8075, Form of Application for Disposition of Plant Equipment: June 1, 1945, 10 F.R. 6802.

19. Part 8076, Retention of Records by Contracting Agencies: July 9, 1945, 10 F.R. 8750; Correction: Dec. 7, 1945, 10 F.R. 14903.

§ 8095.4 Contract Settlement Advisory Board. Section 5 of the Contract Settlement Act created a Contract Settlement Advisory Board with which the Director advises and consults. The Board consists of the Director who acts as its Chairman, and of the Secretary of War, the Secretary of the Navy, the Secretary of the Treasury, the Chairman of the Maritime Commission, the Secretary of State as successor to the Administrator of the Foreign Economic Administration, the Chairman of the Board of Directors of the Reconstruction Finance Corporation, the Administrator of the Civilian Production Administration as successor

to the Chairman of the War Production Board, the Secretary of Commerce as successor to the Chairman of the Board of Directors of Smaller War Plants Corporation and the Attorney General or any alternate or representative designated by any of them. The Director requests other Government agencies to participate in the deliberations of the Board whenever matters especially affecting them are under consideration. Since the function of the Contract Settlement Advisory Board is to advise and consult with the Director, it has no public function. Any request in regard to it may be addressed to the Director of the Office of Contract Settlement as its Chairman.

§ 8095.5 Appeal Board of the Office of Contract Settlement; organization and function. Under section 13 (d) (1) of the Contract Settlement Act, the Director has appointed an Appeal Board which hears appeals from determinations of the contracting agencies and submissions made under the provisions of section 13 of the act. The Appeal Board consists of such number of members as the Director from time to time deems necessary, and at the present time has three fulltime members and two part-time members.

Its decisions are published and are available upon application to the Clerk of the Appeal Board. Matters of official record, which largely consist of records of the proceedings before the Appeal Board, are available at the office of the Clerk of the Appeal Board to persons properly and directly concerned, except information held confidential for good cause found.

The public may secure other information or make submittals or requests by addressing the Clerk of the Appeal Board at its office in the Federal Reserve Building, Washington 25, D. C.

§ 8095.6 Appeal Board of the Office of Contract Settlement; procedures. The rules of practice and procedure for the Appeal Board are prescribed in Regulation 15 and amendments thereto of the Office of Contract Settlement. See Part 8085 of this chapter.

CHAPTER XXI-OFFICE OF TEMPORARY CONTROLS, OFFICE

OF WAR MOBILIZATION AND RECONVERSION

N. B.: Dates appearing in the citations of source of documents codified in this chapter, such as dates of issuance, approval, or effectiveness, are obtained from the original document. For general statutory provisions governing effective dates, validity, and constructive notice see section 7 of the Federal Register Act (49 Stat. 502; 44 U.S.C. 307) and sections 3 and 4 of the Administrative Procedure Act (60 Stat. 238; 5 U.S.C., Sup., 1002, 1003).

NOTE: With certain exceptions, the functions of the Director of War Mobilization and Reconversion were vested in the Administrator of the Office of Temporary Controls, by Executive Order 9809, Dec. 12, 1946, Title 3, supra.

Part

8102 Limitations on Federal construction. [Added]

8103 Administrative Procedure Act requirements.

[Added]

ABBREVIATIONS: The following abbreviations are used in this chapter:

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FEDERAL CONSTRUCTION, 1947 FISCAL YEAR Sec.

8102.1 Prohibitions (August 6, 1946 to September 30, 1946).

8102.2 Determining non-deferrability. 8102.3 Submission and review of proposed programs.

8102.4 Authority to proceed. 8102.5 Prohibition on starts. 8102.6 Definitions.

AUTHORITY: §§ 8102.1 to 8102.6, inclusive, issued under 58 Stat. 785; 50 U.S.C., App., Sup., 1651(c).

SOURCE: 8102.1 to 8102.6, inclusive, contained in Directive 128, Director, Office of War Mobilization and Reconversion, effective Aug. 5, 1946, 11 F.R. 8535.

§ 8102.1 Prohibitions (August 6, 1946, to September 30, 1946). Between August 6, 1946, and September 30, 1946, inclusive, no executive agency shall, except where specifically exempted by letter from the Office of War Mobilization and Reconversion or except in connection with a construction project having an estimated total cost of $3,000 or less shall:

(a) Enter into a contractual obligation for the whole or any part (exclusive of

architectural, engineering, planning, and surveying services) of a construction project by or for such executive agency, except in connection with a project which has already been started by excavation, or incorporation of materials, or in connection with a project for which contracts had been let calling clearly for such starting before October 1, 1946;

(b) Enter into or conclude any agreement or arrangement with a State or local government or with a cooperative or public utility involving the provision of Federal funds in whole or in part, for a construction project, except in connection with a project which has already been started by excavation, or incorporation of materials, or in connection with a project for which contracts had been let calling clearly for such starting before October 1, 1946;

(c) Start or cause to be started a construction project or any part of a construction project which will be done by Federal military or civilian personnel in the employ of the Federal Government.

§ 8102.2 Determining non-deferrability. Prior to August 31, 1946, all executive agencies must review their respective 1947 construction programs in order to determine which projects cannot be de

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ferred until the fourth quarter of fiscal year 1947 (i. e., started on or after April 1, 1947).

No project should be considered nondeferrable at the present time unless:

(a) It must be begun in the immediate future to safeguard or maintain health, safety, or essential services, or

(b) It will contribute significantly to the alleviation of the critical national housing shortage, or

(c) It is indispensable for the continuation of top priority military research and development projects, or

(d) It is clearly necessary to begin construction in the near future to prevent serious depletion or destruction of natural resources where the estimated dollar value of the annual loss which I would be sustained if the construction were not to go forward would exceed 25% of the total construction expenditure in fiscal year 1947, or

(e) It will clearly result in a substantial increase above the levels otherwise obtainable, in the supply and distribution of critical materials, fuel, power, or commodities in the calendar years 1947 or 1948. For purposes of this paragraph no increase is considered substantial unless the estimated value of the increased supply will be equal to or in excess of 50% of the total construction cost to be expended in fiscal year 1947.

However, no project falling into one of the aforementioned five categories of generally non-deferrable projects will be considered non-deferrable unless further:

(f) The need for the proposed construction cannot be met temporarily during the fiscal year 1947 by continued use of an existing facility or by some temporary arrangement involving relatively little or no expenditure of funds or resources for construction. For example, a project should be considered deferrable if the need can be met by the conversion or use of existing facilities, renting privately owned facilities, or facilities owned by another government agency; joint use of Army-Navy facilities; rehabilitation and use, in the Continental United States and overseas, of abandoned or partly used military facilities; or requisition of enemy owned facilities. Furthermore, no new project can be started if it is intended only to replace an existing facility which is:

(1) Less advantageously located than the proposed new construction, or

(2) Inadequate in size or design as compared with the proposed replacement, or

(3) Old or near obsolescence.

(g) The need for the proposed construction cannot be eliminated or postponed. For example, where it is possible to transfer activities or personnel to areas where facilities are available without new construction, or where it is possible to reduce the need for new airport and/or air field facilities by rearranging air transport routes, such rearrangements should be made on a permanent or temporary basis so that the proposed construction can be postponed, or

(h) The need for the facility, although existing since 1941, has not become substantially more acute since that time. For example, construction of a new post office which has been needed since 1941 or before, but which has been deferred since 1941 due to war conditions, must be postponed until after April 1, 1947, unless the need for it has become significantly more acute due to a new factor such as the recent destruction of a post office in the same area by fire and the complete absence of any existing substitute facilities.

§ 8102.3 Submission and review of proposed programs. Upon completion of this review and no later than August 31, 1946, each executive agency must submit to the Civilian Production Administrator its program of construction projects which cannot be deferred until the fourth quarter of fiscal year 1947 (i. e., which must be started prior to April 1, 1947). At the same time each agency must also submit its revised program of construction for the entire fiscal year 1947, stating the total value of new construction expected to be put in place during fiscal year 1947 on all projects regardless of the date on which they were or will be started.

The Civilian Production Administrator will review the proposed programs in the light of the criteria set forth in § 8102.2 above (except that the National Housing Expediter will review all housing projects) for the Director of War Mobilization and Reconversion and will recommend to the Director of War Mobilization and Reconversion the projects and programs which should be allowed to start

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