[Title 32 CFR ]
[Code of Federal Regulations (annual edition) - July 1, 1998 Edition]
[From the U.S. Government Printing Office]


[[Page i]]

          32



          National Defense



          PARTS 1 TO 190

                         Revised as of July 1, 1998

          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT
          AS OF JULY 1, 1998

          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration
          as a Special Edition of
          the Federal Register



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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1998



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 32:
      Subtitle A--Department of Defense:
      Chapter I--Office of the Secretary of Defense...........       5
  Finding Aids:
    Table of CFR Titles and Chapters..........................    1007
    Alphabetical List of Agencies Appearing in the CFR........    1025
    List of CFR Sections Affected.............................    1035



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   Cite this Code:  CFR

   To cite the regulations in this volume use title, part and
   section number. Thus,  32 CFR 2.1 refers to title 32, part
   2, section 1.

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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, July 1, 1998), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
exercised by the user in determining the actual effective date. In 
instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

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Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
Authorities and Agency Rules (Table I), and Acts Requiring Publication 
in the Federal Register (Table II). A list of CFR titles, chapters, and 
parts and an alphabetical list of agencies publishing in the CFR are 
also included in this volume.
    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408 or e-mail 
[email protected].

SALES

    The Government Printing Office (GPO) processes all sales and 
distribution of the CFR. For payment by credit card, call 202-512-1800, 
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Customer Service call 202-512-1803.

ELECTRONIC SERVICES

    The full text of the Code of Federal Regulations, The United States 
Government Manual, the Federal Register, Public Laws, Weekly Compilation 
of Presidential Documents and the Privacy Act Compilation are available 
in electronic format at www.access.gpo.gov/nara (``GPO Access''). For 
more information, contact Electronic Information Dissemination Services, 
U.S. Government Printing Office. Phone 202-512-1530, or 888-293-6498 
(toll-free). E-mail, [email protected].

[[Page vii]]

    The Office of the Federal Register also offers a free service on the 
National Archives and Records Administration's (NARA) World Wide Web 
site for public law numbers, Federal Register finding aids, and related 
information. Connect to NARA's web site at www.nara.gov/fedreg. The NARA 
site also contains links to GPO Access.

                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

July 1, 1998.



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                               THIS TITLE

    Title 32--National Defense is composed of six volumes. The parts in 
these volumes are arranged in the following order: parts 1-190, parts 
191-399, parts 400-629, parts 630-699, parts 700-799, and part 800 to 
end. The contents of these volumes represent all current regulations 
codified under this title of the CFR as of July 1, 1998.

    The current regulations issued by the Department of Defense appear 
in the volumes containing parts 1-190 and parts 191-399; those issued by 
the Department of the Army appear in the volumes containing parts 400-
629 and parts 630-699; those issued by the Department of the Navy appear 
in the volume containing parts 700-799, and those issued by the 
Department of the Air Force, Defense Logistics Agency, Selective Service 
System, Central Intelligence Agency, Information Security Oversight 
Office, National Security Council, Office of Science and Technology 
Policy, Office for Micronesian Status Negotiations, Office of the Vice 
President of the United States, and Presidential Commission on the 
Assignment of Women in the Armed Forces appear in the volume containing 
part 800 to end.

    For this volume, Gwendolyn J. Henderson was Chief Editor. The Code 
of Federal Regulations is published under the direction of Frances D. 
McDonald, assisted by Alomha S. Morris.

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[[Page 1]]



                       TITLE 32--NATIONAL DEFENSE




                   (This book contains parts 1 to 190)

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                                                                    Part

                   SUBTITLE A--Department of Defense:

Chapter i--Office of the Secretary of Defense...............           2

[[Page 3]]

                         Subtitle A--Department

                               of Defense

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              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE




                            (Parts 1 to 190)

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  Editorial Note: Cross reference to the Department of Defense Federal 
Acquisition Regulations, see 48 CFR chapter 2.

                        SUBCHAPTER A--ACQUISITION
Part                                                                Page
1

[Reserved]

2               Pilot program policy........................          11
3-20

[Reserved]

            SUBCHAPTER B--DOD GRANT AND AGREEMENT REGULATIONS

21              DoD grants and agreements--General matters..          14
22              DoD grants and agreements--Award and 
                    administration..........................          21
25              Governmentwide debarment and suspension 
                    (nonprocurement) and governmentwide 
                    requirements for drug-free workplace 
                    (grants)................................          53
28              New restrictions on lobbying................          72
32              Administrative requirements for grants and 
                    agreements with institutions of higher 
                    education, hospitals, and other non-
                    profit organizations....................          84
33              Uniform administrative requirements for 
                    grants and cooperative agreements to 
                    State and local governments.............         112
34              Administrative requirements for grants and 
                    agreements with for-profit organizations         140

             SUBCHAPTER C--PERSONNEL, MILITARY AND CIVILIAN

40              Standards of conduct cross-references.......         161
41              Enlisted administrative separations.........         162
42              Interception of wire and oral communications 
                    for law enforcement purposes............         182

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43              Personal commercial solicitation on DoD 
                    installations...........................         193
44              Screening the Ready Reserve.................         200
45              Certificate of release or discharge from 
                    active duty (DD Form 214/5 Series)......         205
46              Federal voting assistance program...........         219
47              Active duty service for civilian or 
                    contractual groups......................         222
48              Retired serviceman's family protection plan.         227
51              The Department of Defense Military Equal 
                    Opportunity Program.....................         237
53              Wearing of the uniform......................         241
54              Allotments for child and spousal support....         242
55              Physical examinations and annual 
                    certificates of physical condition......         246
56              Nondiscrimination on the basis of handicap 
                    in programs and activities assisted or 
                    conducted by the Department of Defense..         247
57              Provision of early intervention and special 
                    education services to eligible DOD 
                    dependents in overseas areas............         267
58              Human Immunodeficiency Virus (HIV-1)........         288
59              Voluntary military pay allotments...........         295
61              Medical malpractice claims against military 
                    and civilian personnel of the Armed 
                    Forces..................................         298
62              Alcohol and drug abuse by DoD personnel.....         298
62b             Drunk and drugged driving by DoD personnel..         301
63              Former spouse payments from retired pay.....         310
64              Management and mobilization of regular and 
                    reserve retired military members........         316
65              Accession of chaplains for the military 
                    services................................         321
67              Educational requirements for appointment of 
                    reserve component officers to a grade 
                    above first lieutenant or lieutenant 
                    (junior grade)..........................         325
68              Provision of free public education for 
                    eligible children pursuant to section 6, 
                    Public Law 81-874.......................         327
69              School boards for Department of Defense 
                    domestic dependent elementary and 
                    secondary schools.......................         333
70              Discharge review board (DRB) procedures and 
                    standards...............................         337
71              Eligibility requirements for education of 
                    minor dependents in overseas areas......         370
72              Voluntary education programs in overseas 
                    areas...................................         376
73              Training simulators and devices.............         377
74              Appointment of doctors of osteopathy as 
                    medical officers........................         381
75              Conscientious objectors.....................         381

[[Page 7]]

76              Mobilization of the Ready Reserve...........         389
77              Program to encourage public and community 
                    service.................................         395
78              Voluntary State tax withholding from retired 
                    pay.....................................         406
79              Contributions to State retirement programs 
                    for National Guard technicians..........         408
80              Provision of early intervention services to 
                    eligible infants and toddlers with 
                    disabilities and their families, and 
                    special education children with 
                    disabilities within the section 6 school 
                    arrangements............................         410
81              Paternity claims and adoption proceedings 
                    involving members and former members of 
                    the Armed Forces........................         433
83              Standards of conduct........................         434
84              Joint ethics regulation.....................         436
85              Health promotion............................         497
86              Criminal history background checks on 
                    individuals in child care services......         501
88              Transition assistance for military personnel         512
89              Civilian pay allotments.....................         515
93              Acceptance of service of process; release of 
                    official information in litigation; and 
                    testimony by NSA personnel as witnesses.         520
94              Naturalization of aliens serving in the 
                    Armed Forces of the United States and of 
                    alien spouses and/or alien adopted 
                    children of military and civilian 
                    personnel ordered overseas..............         524
96              Acquisition and use of criminal history 
                    record information by the military 
                    services................................         528
97              Release of official information in 
                    litigation and testimony by DoD 
                    personnel as witnesses..................         529
98              Defense hotline program.....................         533
99              Procedures for States and localities to 
                    request indemnification.................         545
100             Unsatisfactory performance of ready reserve 
                    obligation..............................         546
101             Participation in Reserve training programs..         551
102             Uniform Reserve, training and retirement 
                    categories..............................         554
103             Enlistment, appointment, and assignment of 
                    individuals in Reserve components.......         571
104             Civilian employment and reemployment rights 
                    of applicants for, and Service members 
                    and former Service members of the 
                    Uniformed Services......................         572
105             Employment and volunteer work of spouses of 
                    military personnel......................         583

[[Page 8]]

107             Personal services authority for direct 
                    health care providers...................         584
110             Standardized rates of subsistence allowance 
                    and commutation instead of uniforms for 
                    members of the Senior Reserve Officers' 
                    Training Corps..........................         586
111             Reserve Officers' Training Corps program for 
                    secondary educational institutions......         592
112             Indebtedness of military personnel..........         598
113             Indebtedness procedures of military 
                    personnel...............................         601
114             Reserve components common personnel data 
                    system (RCCPDS).........................         618
115             Assignment to and transfer between Reserve 
                    categories, and discharge from Reserve 
                    status..................................         659
132             Initial active duty for training in Reserve 
                    components..............................         661
142             Copyrighted sound and video recordings......         663
143             DoD policy on organizations that seek to 
                    represent or organize members of the 
                    Armed Forces in negotiation or 
                    collective bargaining...................         664
144             Service by members of the Armed Forces on 
                    State and local juries..................         667
145             Cooperation with the Office of Special 
                    Counsel of the Merit Systems Protection 
                    Board...................................         668
146             Compliance of DoD members, employees, and 
                    family members outside the United States 
                    with court orders.......................         674
147             Adjudicative guidelines for determining 
                    eligibility for access to classified 
                    information.............................         676
148             National policy and implementation of 
                    reciprocity of facilities...............         689
149             Policy on technical surveillance 
                    countermeasures.........................         692

        SUBCHAPTER D--REGULATIONS PERTAINING TO MILITARY JUSTICE

150             Courts of criminal appeals rules of practice 
                    and procedure...........................         694
151             Status of forces policies and information...         702
152             Review of the manual for courts-martial.....         708

                         SUBCHAPTER E--SECURITY

154             Department of Defense personnel security 
                    program regulation......................         711
155             Defense industrial personnel security 
                    clearance program.......................         774
156             Department of defense personnel security 
                    program (DoDPSP)........................         781

[[Page 9]]

157             Dissemination of DoD technical information..         783
158             Guidelines for systematic declassification 
                    review of classified information in 
                    permanently valuable DoD records........         787
159             DoD information security program............         794
159a            Information security program regulation.....         796

                    SUBCHAPTER F--DEFENSE CONTRACTING

160             Defense acquisition regulatory system.......         871
162             Productivity Enhancing Capital Investment 
                    (PECI)..................................         873
165             Recoupment of nonrecurring costs on sales of 
                    U.S. items..............................         877
168a            National defense science and engineering 
                    graduate fellowships....................         881
169             Commercial activities program...............         882
169a            Commercial activities program procedures....         886
172             Disposition of proceeds from DoD sales of 
                    surplus personal property...............         928
173             Competitive information certificate and 
                    profit reduction clause.................         934

                 SUBCHAPTER G--CLOSURES AND REALIGNMENT

174             Revitalizing base closure communities.......         938
175             Revitalizing base closure communities-base 
                    closure community assistance............         939
176             Revitalizing base closure communities and 
                    community assistance--Community 
                    redevelopment and homeless assistance...         954

                       SUBCHAPTER H--CIVIL DEFENSE

185             Military support to civil authorities (MSCA)         964
186             The DoD Explosives Safety Board.............         975

                       SUBCHAPTERS I-K [RESERVED]
                        SUBCHAPTER L--ENVIRONMENT

187             Environmental effects abroad of major 
                    Department of Defense actions...........         979
188             Environmental effects in the United States 
                    of DoD actions..........................         988
189             Mineral exploration and extraction on DoD 
                    lands...................................         994
190             Natural Resources Management Program........         996

[[Page 11]]



                        SUBCHAPTER A--ACQUISITION





PART 1  [RESERVED]






PART 2--PILOT PROGRAM POLICY--Table of Contents




Sec.
2.1  Purpose.
2.2  Statutory relief for participating programs.
2.3  Regulatory relief for participating programs.
2.4  Designation of participating programs.
2.5  Criteria for designation of participating programs.

    Authority: 10 U.S.C. 2340 note.

    Source: 62 FR 17549, Apr. 10, 1997, unless otherwise noted.



Sec. 2.1  Purpose.

    Section 809 of Public Law 101-510, ``National Defense Authorization 
Act for Fiscal Year 1991,'' as amended by section 811 of Public Law 102-
484, ``National Defense Authorization Act for Fiscal Year 1993'' and 
Public Law 103-160, ``National Defense Authorization Act for Fiscal Year 
1994,'' authorizes the Secretary of Defense to conduct the Defense 
Acquisition Pilot Program. In accordance with section 809 of Public Law 
101-510, the Secretary may designate defense acquisition programs for 
participation in the Defense Acquisition Pilot Program.
    (a) The purpose of the pilot programs is to determine the potential 
for increasing the efficiency and effectiveness of the acquisition 
process. Pilot programs shall be conducted in accordance with the 
standard commercial, industrial practices. As used in this policy, the 
term ``standard commercial, industrial practice'' refers to any 
acquisition management practice, process, or procedure that is used by 
commercial companies to produce and sell goods and services in the 
commercial marketplace. This definition purposely implies a broad range 
of potential activities to adopt commercial practices, including 
regulatory and statutory streamlining, to eliminate unique Government 
requirements and practices such as government-unique contracting 
policies and practices, government-unique specifications and standards, 
and reliance on cost determination rather than price analysis.
    (b) Standard commercial, industrial practices include, but are not 
limited to:
    (1) Innovative contracting policies and practices;
    (2) Performance and commercial specifications and standards;
    (3) Innovative budget policies;
    (4) Establishing fair and reasonable prices without cost data;
    (5) Maintenance of long-term relationships with quality suppliers;
    (6) Acquisition of commercial and non-developmental items (including 
components); and
    (7) Other best commercial practices.



Sec. 2.2  Statutory relief for participating programs.

    (a) Within the limitations prescribed, the applicability of any 
provision of law or any regulation prescribed to implement a statutory 
requirement may be waived for all programs participating in the Defense 
Acquisition Pilot Program, or separately for each participating program, 
if that waiver or limit is specifically authorized to be waived or 
limited in a law authorizing appropriations for a program designated by 
statute as a participant in the Defense Acquisition Pilot Program.
    (b) Only those laws that prescribe procedures for the procurement of 
supplies or services; a preference or requirement for acquisition from 
any source or class of sources; any requirement related to contractor 
performance; any cost allowability, cost accounting, or auditing 
requirements; or any requirement for the management of, testing to be 
performed under, evaluation of, or reporting on a defense acquisition 
program may be waived.
    (c) The requirements in section 809 of Public Law 101-510, as 
amended by section 811 of Public Law 102-484, the requirements in any 
law enacted on or after the enactment of Public Law 101-510 (except to 
the extent that a waiver or limitation is specifically authorized for 
such a defense acquisition program by statute), and any provision of law 
that ensures the financial integrity of

[[Page 12]]

the conduct of a Federal Government program or that relates to the 
authority of the Inspector General of the Department of Defense may not 
be considered for waiver.



Sec. 2.3  Regulatory relief for participating programs.

    (a) A program participating in the Defense Acquisition Pilot Program 
will not be subject to any regulation, policy, directive, or 
administrative rule or guideline relating to the acquisition activities 
of the Department of Defense other than the Federal Acquisition 
Regulation (FAR) \1\, the Defense FAR Supplement (DFARS) \2\, or those 
regulatory requirements added by the Under Secretary of Defense for 
Acquisition and Technology, the Head of the Component, or the DoD 
Component Acquisition Executive.
---------------------------------------------------------------------------

    \1\ Copies of this Department of Defense publication may be obtained 
from the Government Printing Office, Superintendent of Documents, 
Washington, DC 20402.
    \2\ See footnote 1 to Sec. 2.3(a).
---------------------------------------------------------------------------

    (b) Provisions of the FAR and/or DFARS that do not implement 
statutory requirements may be waived by the Under Secretary of Defense 
for Acquisition and Technology using appropriate administrative 
procedures. Provisions of the FAR and DFARS that implement statutory 
requirements may be waived or limited in accordance with the procedures 
for statutory relief previously mentioned.
    (c) Regulatory relief includes relief from use of government-unique 
specifications and standards. Since a major objective of the Defense 
Acquisition Pilot Program is to promote standard, commercial industrial 
practices, functional performance and commercial specifications and 
standards will be used to the maximum extent practical. Federal or 
military specifications and standards may be used only when no practical 
alternative exists that meet the user's needs. Defense acquisition 
officials (other than the Program Manager or Commodity Manager) may only 
require the use of military specifications and standards with advance 
approval from the Under Secretary of Defense for Acquisition and 
Technology, the Head of the DoD Component, or the DoD Component 
Acquisition Executive.



Sec. 2.4  Designation of participating programs.

    (a) Pilot programs may be nominated by a DoD Component Head or 
Component Acquisition Executive for participation in the Defense 
Acquisition Pilot Program. The Under Secretary of Defense for 
Acquisition and Technology shall determine which specific programs will 
participate in the pilot program and will transmit to the Congressional 
defense committees a written notification of each defense acquisition 
program proposed for participation in the pilot program. Programs 
proposed for participation must be specifically designated as 
participants in the Defense Acquisition Pilot Program in a law 
authorizing appropriations for such programs and provisions of law to be 
waived must be specifically authorized for waiver.
    (b) Once included in the Defense Acquisition Pilot Program, decision 
and approval authority for the participating program shall be delegated 
to the lowest level allowed in the acquisition regulations consistent 
with the total cost of the program (e.g., under DoD Directive 5000.1, 
\3\ an acquisition program that is a major defense acquisition program 
would be delegated to the appropriate Component Acquisition Executive as 
an acquisition category IC program)
---------------------------------------------------------------------------

    \3\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    (c) At the time of nomination approval, the Under Secretary of 
Defense for Acquisition and Technology will establish measures to judge 
the success of a specific program, and will also establish a means of 
reporting progress towards the measures.



Sec. 2.5  Criteria for designation of participating programs.

    (a) Candidate programs must have an approved requirement, full 
program funding assured prior to designation, and low risk. Nomination 
of a candidate program to participate in the Defense Acquisition Pilot 
Program should occur as early in the program's life-cycle as possible. 
Developmental programs will only be considered on an exception basis.

[[Page 13]]

    (b) Programs in which commercial or non-developmental items can 
satisfy the military requirement are preferred as candidate programs. A 
nominated program will address which standard commercial, industrial 
practices will be used in the pilot program and how those practices will 
be applied.
    (c) Nomination of candidate programs must be accompanied by a list 
of waivers being requested to Statutes, FAR, DFARS, DoD Directives \4\ 
and Instructions,\5\ and where applicable, DoD Component regulations. 
Waivers being requested must be accompanied by rationale and 
justification for the waiver. The justification must include:
---------------------------------------------------------------------------

    \4\ See footnote 3 to Sec. 2.4(b).
    \5\ See footnote 3 to Sec. 2.4(b).
---------------------------------------------------------------------------

    (1) The provision of law proposed to be waived or limited.
    (2) The effects of the provision of law on the acquisition, 
including specific examples.
    (3) The actions taken to ensure that the waiver or limitation will 
not reduce the efficiency, integrity, and effectiveness of the 
acquisition process used for the defense acquisition program; and
    (4) A discussion of the efficiencies or savings, if any, that will 
result from the waiver or limitation.
    (d) No nominated program shall be accepted until the Under Secretary 
of Defense has determined that the candidate program is properly 
planned.



PARTS 3-20  [RESERVED]




[[Page 14]]



            SUBCHAPTER B--DoD GRANT AND AGREEMENT REGULATIONS





PART 21--DoD GRANTS AND AGREEMENTS--GENERAL MATTERS--Table of Contents




        Subpart A--Defense Grant and Agreement Regulatory System

Sec.
21.100  Scope.
21.105  Authority, purpose, and issuance.
21.110  Applicability and relationship to acquisition regulations.
21.115  Compliance and implementation.
21.120  Publication and maintenance.
21.125  Deviations.
21.130  Definitions.

               Subpart B--Authorities and Responsibilities

21.200  Purpose.
21.205  DoD Components' authorities.
21.210  Vesting and delegation of authority.
21.215  Contracting activities.
21.220  Grants officers.

Subpart C--Information Reporting on Grants, Cooperative Agreements, and 
                    Other Nonprocurement Instruments

21.300  Purpose.
21.305  Defense Assistance Awards Data System.
21.310  Catalog of Federal Domestic Assistance.
21.315  Uniform grants and agreements numbering system.

    Authority:  5 U.S.C. 301 and 10 U.S.C. 113.

    Source: 63 FR 12160, Mar. 12, 1998, unless otherwise noted.



        Subpart A--Defense Grant and Agreement Regulatory System



Sec. 21.100  Scope.

    The purposes of this part, which is one portion of the DoD Grant and 
Agreement Regulations (DoDGARs), are to:
    (a) Provide general information about the DoDGARs.
    (b) Set forth general policies and procedures related to DoD 
Components' overall management of functions related to grants and 
cooperative agreements.



Sec. 21.105  Authority, purpose, and issuance.

    (a) DoD Directive 3210.6\1\ established the Defense Grant and 
Agreement Regulatory System (DGARS). The directive authorized 
publication of policies and procedures comprising the DGARS in the DoD 
Grant and Agreement Regulations (DoDGARs), in DoD instructions, and in 
other DoD publications, as appropriate. Thus, the DoDGARs are one 
element of the DGARS.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161. 
Authorized users may also obtain copies from the Defense Technical 
Information Center, 8725 John J. Kingman Rd., Suite 0944, Fort Belvoir, 
VA 22060-6218.
---------------------------------------------------------------------------

    (b) The purposes of the DoDGARs, in conjunction with other elements 
of the DGARS, are to provide uniform policies and procedures for grants 
and cooperative agreements awarded by DoD Components, in order to meet 
DoD needs for:
    (1) Efficient program execution, effective program oversight, and 
proper stewardship of Federal funds.
    (2) Compliance with relevant statutes; Executive orders; and 
applicable guidance, such as Office of Management and Budget (OMB) 
circulars.
    (3) Collection from DoD Components, retention, and dissemination of 
management and fiscal data related to grants and agreements.
    (c) The Director of Defense Research and Engineering, or his or her 
designee:
    (1) Develops and implements DGARS policies and procedures.
    (2) Issues and maintains the DoD Grant and Agreement Regulations and 
other DoD publications that comprise the DGARS.



Sec. 21.110  Applicability and relationship to acquisition regulations.

    (a) Applicability to grants and cooperative agreements. The DoD 
Grant and Agreement Regulations (DoDGARs) apply to all DoD grants and 
cooperative agreements.

[[Page 15]]

    (b) Applicability to other nonprocurement instruments. (1) In 
accordance with DoD Directive 3210.6, the DoDGARs may include rules that 
apply to other nonprocurement instruments, when specifically required in 
order to implement a statute, Executive order, or Governmentwide rule 
that applies to other nonprocurement instruments, as well as to grants 
and cooperative agreements. For example, the rule on nonprocurement 
debarment and suspension in 32 CFR part 25, subparts A through E, 
applies to all nonprocurement transactions, including grants, 
cooperative agreements, contracts of assistance, loans and loan 
guarantees (see definition of ``primary covered transaction'' at 32 CFR 
25.110(a)(1)(i)).
    (2) The following is a list of DoDGARs rules that apply not only to 
grants and cooperative agreements, but also to other types of 
nonprocurement instruments:
    (i) Requirements for reporting to the Defense Assistance Award Data 
System, in subpart C of this part.
    (ii) The rule on nonprocurement debarment and suspension in 32 CFR 
part 25, subparts A through E.
    (iii) Drug-free workplace requirements in 32 CFR part 25, subpart F.
    (iv) Restrictions on lobbying in 32 CFR part 28.
    (v) Administrative requirements for grants, cooperative agreements, 
and other financial assistance to:
    (A) Universities and other nonprofit organizations, in 32 CFR part 
32.
    (B) State and local governments, in 32 CFR part 33.
    (3) Grants officers should be aware that each rule that applies to 
other types of nonprocurement instruments (i.e., other than grants and 
cooperative agreements) states its applicability to such instruments. 
However, grants officers must exercise caution when determining the 
applicability of some Governmentwide rules that are included in the 
DoDGARs, because a term may be defined differently in a Governmentwide 
rule than it is defined elsewhere in the DoDGARs. For example, the 
Governmentwide implementation of the Drug-Free Workplace Act of 1988 (32 
CFR part 25, subpart F) states that it applies to grants, but defines 
``grants'' to include cooperative agreements and other forms of 
financial assistance.
    (c) Relationship to acquisition regulations. The Federal Acquisition 
Regulation (FAR) (48 CFR parts 1-53), the Defense Federal Acquisition 
Regulation Supplement (DFARS) (48 CFR parts 201-270), and DoD Component 
supplements to the FAR and DFARS apply to DoD Components' procurement 
contracts used to acquire goods and services for the direct benefit or 
use of the Federal Government. Policies and procedures in the FAR and 
DFARS do not apply to grants, cooperative agreements, or other 
nonprocurement transactions unless the DoDGARs specify that they apply.



Sec. 21.115  Compliance and implementation.

    The Head of each DoD Component that awards or administers grants and 
cooperative agreements, or his or her designee:
    (a) Is responsible for ensuring compliance with the DoDGARs within 
that DoD Component.
    (b) May authorize the issuance of regulations, procedures, or 
instructions that are necessary to implement DGARS policies and 
procedures within the DoD Component, or to supplement the DoDGARs to 
satisfy needs that are specific to the DoD Component, as long as such 
regulations, procedures, or instructions do not impose additional costs 
or administrative burdens on recipients or potential recipients. Heads 
of DoD Components or their designees shall establish policies and 
procedures in areas where uniform policies and procedures throughout the 
DoD Component are required, such as for:
    (1) Requesting class deviations from the DoDGARs (see Sec. 21.125) 
or exemptions from the provisions of 31 U.S.C. 6301 et seq., that govern 
the appropriate use of contracts, grants, and cooperative agreements 
(see 32 CFR 22.220).
    (2) Designating one or more Grant Appeal Authorities to resolve 
claims, disputes, and appeals (see 32 CFR 22.815).
    (3) Reporting data on assistance awards and programs, as required by 
31 U.S.C. chapter 61 (see subpart C of this part).

[[Page 16]]

    (4) Prescribing requirements for use and disposition of real 
property acquired under awards, if the DoD Component makes any awards to 
institutions of higher education or to other nonprofit organizations 
under which real property is acquired in whole or in part with Federal 
funds (see 32 CFR 32.32).



Sec. 21.120  Publication and maintenance.

    (a) The DoDGARs are published as chapter I, subchapter B, title 32 
of the Code of Federal Regulations (CFR) and in a separate loose-leaf 
edition. The loose-leaf edition is divided into parts, subparts, and 
sections, to parallel the CFR publication. Cross-references within the 
DoDGARs are stated as CFR citations (e.g., a reference to Sec. 21.115 in 
part 21 would be to 32 CFR 21.115).
    (b) Updates to the DoDGARs are published in the Federal Register. 
When finalized, updates also are published as Defense Grant and 
Agreement Circulars, with revised pages for the separate, loose-leaf 
edition.
    (c) Revisions to the DoDGARs are recommended to the Director of 
Defense Research and Engineering (DDR&E) by a standing working group. 
The DDR&E, Director of Defense Procurement, and each Military Department 
shall be represented on the working group. Other DoD Components that use 
grants or cooperative agreements may also nominate representatives. The 
working group meets when necessary.



Sec. 21.125  Deviations.

    (a) The Head of the DoD Component or his or her designee may 
authorize individual deviations from the DoDGARs, which are deviations 
that affect only one grant or cooperative agreement, if such deviations 
are not prohibited by statute, executive order or regulation.
    (b) Class deviations that affect more than one grant or cooperative 
agreement must be approved in advance by the Director, Defense Research 
and Engineering (DDR&E) or his or her designee. Note that OMB 
concurrence also is required for deviations from two parts of the 
DoDGARs, 32 CFR parts 32 and 33, in accordance with 32 CFR 32.4 and 
33.6, respectively.
    (c) Copies of justifications and agency approvals for individual 
deviations and written requests for class deviations shall be submitted 
to: Deputy Director, Defense Research and Engineering, ATTN: Research, 
3080 Defense Pentagon, Washington DC 20301-3080.
    (d) Copies of requests and approvals for individual and class 
deviations shall be maintained in award files.



Sec. 21.130  Definitions.

    Acquisition. The acquiring (by purchase, lease, or barter) of 
property or services for the direct benefit or use of the United States 
Government (see more detailed definition at 48 CFR 2.101). In accordance 
with 31 U.S.C. 6303, procurement contracts are the appropriate legal 
instruments for acquiring such property or services.
    Assistance. The transfer of a thing of value to a recipient to carry 
out a public purpose of support or stimulation authorized by a law of 
the United States (see 31 U.S.C. 6101(3)). Grants and cooperative 
agreements are examples of legal instruments used to provide assistance.
    Contract. See the definition for procurement contract in this 
section.
    Contracting activity. An activity to which the Head of a DoD 
Component has delegated broad authority regarding acquisition functions, 
pursuant to 48 CFR 1.601.
    Contracting officer. A person with the authority to enter into, 
administer, and/or terminate contracts and make related determinations 
and findings. A more detailed definition of the term appears at 48 CFR 
2.101.
    Cooperative agreement. A legal instrument which, consistent with 31 
U.S.C. 6305, is used to enter into the same kind of relationship as a 
grant (see definition ``grant''), except that substantial involvement is 
expected between the Department of Defense and the recipient when 
carrying out the activity contemplated by the cooperative agreement. The 
term does not include ``cooperative research and development 
agreements'' as defined in 15 U.S.C. 3710a.
    Deviation. The issuance or use of a policy or procedure that is 
inconsistent with the DoDGARs.

[[Page 17]]

    DoD Components. The Office of the Secretary of Defense, the Military 
Departments, the Defense Agencies, and DoD Field Activities.
    Grant. A legal instrument which, consistent with 31 U.S.C. 6304, is 
used to enter into a relationship:
    (1) The principal purpose of which is to transfer a thing of value 
to the recipient to carry out a public purpose of support or stimulation 
authorized by a law of the United States, rather than to acquire 
property or services for the Department of Defense's direct benefit or 
use.
    (2) In which substantial involvement is not expected between the 
Department of Defense and the recipient when carrying out the activity 
contemplated by the grant.
    Grants officer. An official with the authority to enter into, 
administer, and/or terminate grants or cooperative agreements.
    Nonprocurement instrument. A legal instrument other than a 
procurement contract. Examples include instruments of financial 
assistance, such as grants or cooperative agreements, and those of 
technical assistance, which provide services in lieu of money.
    Procurement contract. A legal instrument which, consistent with 31 
U.S.C. 6303, reflects a relationship between the Federal Government and 
a State, a local government, or other recipient when the principal 
purpose of the instrument is to acquire property or services for the 
direct benefit or use of the Federal Government. See the more detailed 
definition for contract at 48 CFR 2.101.
    Recipient. An organization or other entity receiving a grant or 
cooperative agreement from a DoD Component.



               Subpart B--Authorities and Responsibilities



Sec. 21.200  Purpose.

    This subpart describes the sources and flow of authority to use 
grants and cooperative agreements, and assigns the broad 
responsibilities associated with DoD Components' use of such 
instruments.



Sec. 21.205  DoD Components' authorities.

    (a) In accordance with 31 U.S.C. 6301 et seq., DoD Components shall 
use grants and cooperative agreements as legal instruments reflecting 
assistance relationships between the United States Government and 
recipients.
    (b) Unlike the use of a procurement contract (for which Federal 
agencies have inherent, Constitutional authority), use of a grant or 
cooperative agreement to carry out a program requires authorizing 
legislation, the intent of which supports the use of an assistance 
instrument (e.g., the intent of the legislation authorizing a program 
supports a judgment that the principal purpose of the program is 
assistance, rather than acquisition). DoD Components may award grants 
and cooperative agreements under a number of statutory authorities that 
fall into three categories:
    (1) Authorities that statutes provide to the Secretary of Defense. 
These authorities generally are delegated by the Secretary of Defense to 
Heads of DoD Components, usually through DoD directives, instructions, 
or policy memoranda that are not part of the Defense Grant and Agreement 
Regulatory System. Examples of statutory authorities in this category 
are:
    (i) Authority under 10 U.S.C. 2391 to make grants or conclude 
cooperative agreements to assist State and local governments in planning 
and carrying out community adjustments and economic diversification 
required by changes in military installations or in DoD contracts or 
spending that may have a direct and significant adverse consequence on 
the affected community.
    (ii) Authority under 10 U.S.C. 2413 to enter into cooperative 
agreements with entities that furnish procurement technical assistance 
to businesses.
    (2) Authorities that statutes may provide directly to Heads of DoD 
Components. When a statute authorizes the head of a DoD Component to use 
a grant or cooperative agreement or to carry out a program with a 
principal purpose of assistance, use of that authority requires no 
delegation by the Secretary of Defense. For example, 10 U.S.C. 2358 
authorizes the Secretaries

[[Page 18]]

of the Military Departments, in addition to the Secretary of Defense, to 
perform research and development projects through grants and cooperative 
agreements. A Military Department's use of the authority of 10 U.S.C. 
2358 therefore requires no delegation by the Secretary of Defense.
    (3) Authorities that arise indirectly as the result of statute. For 
example, authority to use a grant or cooperative agreement may result 
from:
    (i) A federal statute authorizing a program that is consistent with 
an assistance relationship (i.e., the support or stimulation of a public 
purpose, rather than the acquisition of a good or service for the direct 
benefit of the Department of Defense). In accordance with 31 U.S.C. 
chapter 63, such a program would appropriately be carried out through 
the use of grants or cooperative agreements.
    (ii) Exemptions requested by the Department of Defense and granted 
by the Office of Management and Budget under 31 U.S.C. 6307, as 
described in 32 CFR 22.220.



Sec. 21.210  Vesting and delegation of authority.

    (a) The authority and responsibility for awarding grants and 
cooperative agreements is vested in the Head of each DoD Component that 
has such authority.
    (b) The Head of each such DoD Component, or his or her designee, may 
delegate to the heads of contracting activities (HCAs) within that 
Component, authority to award grants or cooperative agreements, to 
appoint grants officers (see Sec. 21.220(c)), and to broadly manage the 
DoD Component's functions related to grants and cooperative agreements. 
An HCA is the same official (or officials) designated as the head of the 
contracting activity for procurement contracts, as defined at 48 CFR 
2.101--the intent is that overall management responsibilities for a DoD 
Component's functions related to nonprocurement instruments be assigned 
only to officials that have similar responsibilities for procurement 
contracts.



Sec. 21.215  Contracting activities.

    When designated by the Head of the DoD Component or his or her 
designee (see 32 CFR 21.210(b)), the HCA is responsible for the grants 
and cooperative agreements made by or assigned to that activity. He or 
she shall supervise and establish internal policies and procedures for 
that activity's assistance awards.



Sec. 21.220  Grants officers.

    (a) Authority. Only grants officers are authorized to sign grants or 
cooperative agreements, or to administer or terminate such legal 
instruments on behalf of the Department of Defense. Grants officers may 
bind the Government only to the extent of the authority delegated to 
them.
    (b) Responsibilities. Grants officers should be allowed wide 
latitude to exercise judgment in performing their responsibilities. 
Grants officers are responsible for ensuring that:
    (1) Individual grants and cooperative agreements are used 
effectively in the execution of DoD programs, and are awarded and 
administered in accordance with applicable laws, Executive orders, 
regulations, and DoD policies.
    (2) Sufficient funds are available for obligation.
    (3) Recipients of grants and cooperative agreements receive 
impartial, fair, and equitable treatment.
    (c) Selection, appointment and termination of appointment of grants 
officers. Each DoD Component that awards grants or enters into 
cooperative agreements shall have a formal process (see Sec. 21.210(b)) 
to select and appoint grants officers and terminate their appointments. 
DoD Components are not required to maintain a selection process for 
grants officers separate from the selection process for contracting 
officers, and written statements of appointment or termination for 
grants officers may be integrated into the necessary documentation for 
contracting officers, as appropriate.
    (1) Selection. In selecting grants officers, appointing officials 
shall consider the complexity and dollar value of the grants and 
cooperative agreements to

[[Page 19]]

be assigned and judge whether candidates possess the necessary 
experience, training, education, business acumen, judgment, and 
knowledge of contracts and assistance instruments to function 
effectively as grants officers.
    (2) Appointment. Statements of appointment shall be in writing and 
shall clearly state the limits of grants officers' authority, other than 
limits contained in applicable laws or regulations. Information on the 
limits of a grants officer's authority shall be readily available to the 
public and agency personnel.
    (3) Termination. Written statements of termination are required, 
unless the written statement of appointment provides for automatic 
termination. No termination shall be retroactive.



Subpart C--Information Reporting on Grants, Cooperative Agreements, and 
                    Other Nonprocurement Instruments



Sec. 21.300  Purpose.

    This subpart prescribes policies and procedures for compiling and 
reporting data related to grants, cooperative agreements, and other 
nonprocurement instruments subject to information reporting requirements 
of 31 U.S.C. chapter 61.



Sec. 21.305  Defense Assistance Awards Data System.

    (a) Purposes of the system. Data from the Defense Assistance Awards 
Data System (DAADS) are used to provide:
    (1) DoD inputs to meet statutory requirements for Federal 
Governmentwide reporting of data related to obligations of funds by 
grant, cooperative agreement, or other nonprocurement instrument.
    (2) A basis for meeting Governmentwide requirements to report to the 
Federal Assistance Awards Data System maintained by the Department of 
Commerce and for preparing other recurring and special reports to the 
President, the Congress, the General Accounting Office, and the public.
    (3) Information to support policy formulation and implementation and 
to meet management oversight requirements related to the use of grants, 
cooperative agreements, and other nonprocurement instruments.
    (b) Responsibilities. (1) The Deputy Director, Defense Research and 
Engineering (DDDR&E), or his or her designee, shall issue the manual 
described in paragraph (b)(2)(ii) of this section.
    (2) The Director for Information Operations and Reports, Washington 
Headquarters Services (DIOR, WHS) shall, consistent with guidance issued 
by the DDDR&E:
    (i) Process DAADS information on a quarterly basis and prepare 
recurring and special reports using such information.
    (ii) Prepare, update, and disseminate ``Department of Defense 
Assistance Awards Data System,'' an instruction manual for reporting 
information to DAADS. The manual, which shall be issued by the office of 
the DDR&E, shall specify procedures, formats, and editing processes to 
be used by DoD Components, including magnetic tape layout and error 
correction schedules.
    (3) The following offices shall serve as central points for 
collecting DAADS information from contracting activities within the DoD 
Components:
    (i) For the Army: As directed by the U.S. Army Contracting Support 
Agency.
    (ii) For the Navy: As directed by the Office of Naval Research.
    (iii) For the Air Force: As directed by SAF/AQCP.
    (iv) For the Office of the Secretary of Defense, Defense Agencies, 
and DoD Field Activities: Each Defense Agency shall identify a central 
point for collecting and reporting DAADS information to the DIOR, WHS, 
at the address given in paragraph (c)(2) of this section. DIOR, WHS 
shall serve as the central point for offices and activities within the 
Office of the Secretary of Defense and for DoD Field Activities.
    (4) The office that serves, in accordance with paragraph (b)(3) of 
this section, as the central point for collecting DAADS information from 
contracting activities within each DoD Component shall:
    (i) Establish internal procedures to ensure reporting by contracting 
activities that use grants, cooperative agreements or other 
nonprocurement instruments subject to 31 U.S.C. chapter 61.

[[Page 20]]

    (ii) Collect information required by DD Form 2566, ``DoD Assistance 
Award Action Report,'' from those contracting activities, and report it 
to DIOR, WHS, in accordance with paragraph (d) of this section.
    (iii) Submit to the DDDR&E, at the address given in Sec. 21.125(c), 
any recommended changes to the DAADS or to the instruction manual 
described in paragraph (b)(2)(ii) of this section.
    (c) Reporting procedures. The data required by the DD Form 2566 
shall be:
    (1) Collected for each individual grant, cooperative agreement, or 
other nonprocurement action that is subject to 31 U.S.C. chapter 61 and 
involves the obligation or deobligation of Federal funds. Each action is 
reported as an obligation under a specific program listed in the Catalog 
of Federal Domestic Assistance (CFDA, see Sec. 21.310). The program to 
be shown is the one that provided the funds being obligated (i.e., if a 
grants officer in one DoD Component obligates appropriations of a second 
DoD Component's program, the grants officer would show the CFDA program 
of the second DoD Component on the DD Form 2566).
    (2) Reported on a quarterly basis to DIOR, WHS by the offices that 
are designated pursuant to paragraph (b)(3) of this section. For the 
first three quarters of the Federal fiscal year, the data are due by 
close-of-business (COB) on the 15th day after the end of the quarter 
(i.e., first-quarter data are due by COB on January 15th, second-quarter 
data by COB April 15th, and third-quarter data by COB July 15th). 
Fourth-quarter data are due by COB October 25th, the 25th day after the 
end of the quarter. If any due date falls on a weekend or holiday, the 
data are due on the next regular workday. The mailing address for DIOR, 
WHS is 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-
4302.
    (3) Reported on a computer tape, floppy diskette or by other means 
permitted by the instruction manual described in paragraph (b)(2)(ii) of 
this section. The data shall be reported in the format specified in the 
instruction manual.
    (d) Report control symbol. DoD Components' reporting of DAADS data 
is used by DoD to satisfy Governmentwide requirements to report to the 
Federal Assistance Awards Data System, which is assigned Interagency 
Report Control Number 0252-DOC-QU.



Sec. 21.310  Catalog of Federal Domestic Assistance.

    (a) Purpose and scope of the reporting requirement. (1) Under the 
Federal Program Information Act (31 U.S.C. 6101 et seq.), as implemented 
through OMB Circular A-89,\2\ the Department of Defense is required to 
provide certain information about its domestic assistance programs to 
OMB and the General Services Administration (GSA). GSA makes this 
information available to the public by publishing it in the Catalog of 
Federal Domestic Assistance (CFDA) and maintaining the Federal 
Assistance Programs Retrieval System, a computerized data base of the 
information.
---------------------------------------------------------------------------

    \2\ Contact the Office of Management and Budget, EOP Publications, 
725 17th St. N.W., New Executive Office Building, Washington, D.C. 
20503.
---------------------------------------------------------------------------

    (2) The CFDA covers all domestic assistance programs and activities, 
regardless of the number of awards made under the program, the total 
dollar value of assistance provided, or the duration. In addition to 
programs using grants and cooperative agreements, covered programs 
include those providing assistance in other forms, such as payments in 
lieu of taxes or indirect assistance resulting from Federal operations.
    (b) Responsibilities. (1) Each DoD Component that provides domestic 
financial assistance shall:
    (i) Report to the Director for Information Operations and Reports, 
Washington Headquarters Services (DIOR, WHS) all new programs and 
changes as they occur, or as DIOR, WHS requests annual updates to 
existing CFDA information.
    (ii) Identify to the DIOR, WHS a point-of-contact who will be 
responsible for reporting such program information and for responding to 
inquiries related to it.
    (2) The DIOR, WHS shall act as the Department of Defense's single 
office for collecting, compiling and reporting

[[Page 21]]

such program information to OMB and GSA.



Sec. 21.315  Uniform grants and agreements numbering system.

    DoD Components shall assign identifying numbers to all 
nonprocurement instruments subject to this subpart, including grants and 
cooperative agreements. The numbering system parallels the procurement 
instrument identification (PII) numbering system specified in 48 CFR 
204.70 (in the ``Defense Federal Acquisition Regulation Supplement''), 
as follows:
    (a) The first six alphanumeric characters of the assigned number 
shall be identical to those specified by 48 CFR 204.7003(a)(1) to 
identify the DoD Component and contracting activity.
    (b) The seventh and eighth positions shall be the last two digits of 
the fiscal year in which the number is assigned to the grant, 
cooperative agreement, or other nonprocurement instrument.
    (c) The 9th position shall be a number: ``1'' for grants; ``2'' for 
cooperative agreements; and ``3'' for other nonprocurement instruments.
    (d) The 10th through 13th positions shall be the serial number of 
the instrument. DoD Components and contracting activities need not 
follow any specific pattern in assigning these numbers and may create 
multiple series of letters and numbers to meet internal needs for 
distinguishing between various sets of awards.



PART 22--DoD GRANTS AND AGREEMENTS--AWARD AND ADMINISTRATION--Table of Contents




                           Subpart A--General

Sec.
22.100  Purpose, relation to other parts, and organization.
22.105  Definitions.

             Subpart B--Selecting the Appropriate Instrument

22.200  Purpose.
22.205  Distinguishing assistance from procurement.
22.210  Authority for providing assistance.
22.215  Distinguishing grants and cooperative agreements.
22.220  Exemptions.

                         Subpart C--Competition

22.300  Purpose.
22.305  General policy and requirement for competition.
22.310  Statutes concerning certain research, development, and 
          facilities construction grants.
22.315  Merit-based, competitive procedures.
22.320  Special competitions.
22.325  Historically Black colleges and universities (HBCUs) and other 
          minority institutions (MIs).

    Subpart D--Recipient Qualification Matters--General Policies and 
                               Procedures

22.400  Purpose.
22.405  Policy.
22.410  Grants officers' responsibilities.
22.415  Standards.
22.420  Pre-award procedures.

                   Subpart E--National Policy Matters

22.505  Purpose.
22.510  Certifications, representations, and assurances.
22.515  Provisions of annual appropriations acts.
22.520  Military recruiting on campus.
22.525  Paperwork Reduction Act.
22.530  Metric system of measurement.

                            Subpart F--Award

22.600  Purpose.
22.605  Grants officers' responsibilities.
22.610  Award instruments.

                     Subpart G--Field Administration

22.700  Purpose.
22.705  Policy.
22.710  Assignment of grants administration offices.
22.715  Grants administration office functions.

                  Subpart H--Post-Award Administration

22.800  Purpose and relation to other parts.
22.805  Post-award requirements in other parts.
22.810  Payments.
22.815  Claims, disputes, and appeals.
22.820  Debt collection.
22.825  Closeout audits.

Appendix A to Part 22--Proposal Provision for Required Certifications.
Appendix B to Part 22--Suggested Award Provisions for National Policy 
          Requirements That Often Apply.
Appendix C to Part 22--Administrative Requirements and Issues To Be 
          Addressed in Award Terms and Conditions.

    Authority:  5 U.S.C. 301 and 10 U.S.C. 113.

[[Page 22]]


    Source: 63 FR 12164, Mar. 12, 1998, unless otherwise noted.



                           Subpart A--General



Sec. 22.100  Purpose, relation to other parts, and organization.

    (a) This part outlines grants officers' and DoD Components' 
responsibilities related to the award and administration of grants and 
cooperative agreements.
    (b) In doing so, it also supplements other parts of the DoD Grant 
and Agreement Regulations (DoDGARs) that are either Governmentwide rules 
or DoD implementation of Governmentwide guidance in Office of Management 
and Budget (OMB) Circulars. Those other parts of the DoDGARs, which are 
referenced as appropriate in this part, are:
    (1) Governmentwide rules on debarment, suspension and drug-free 
workplace requirements, in 32 CFR part 25.
    (2) The Governmentwide rule on lobbying restrictions, in 32 CFR part 
28.
    (3) Administrative requirements for grants and agreements awarded to 
specific types of recipients:
    (i) For State and local governmental organizations, in the 
Governmentwide rule at 32 CFR part 33.
    (ii) For institutions of higher education and other nonprofit 
organizations, at 32 CFR part 32.
    (iii) For for-profit organizations, at 32 CFR part 34.
    (c) The organization of this part parallels the award and 
administration process, from pre-award through post-award matters. It 
therefore is organized in the same manner as the parts of the DoDGARs 
(32 CFR parts 32, 33, and 34) that prescribe administrative requirements 
for specific types of recipients.



Sec. 22.105  Definitions.

    Other than the terms defined in this section, terms used in this 
part are defined in 32 CFR 21.130.
    Administrative offset. An action whereby money payable by the United 
States Government to, or held by the Government for, a recipient is 
withheld to satisfy a delinquent debt the recipient owes the Government.
    Advanced research. Advanced technology development that creates new 
technology or demonstrates the viability of applying existing technology 
to new products and processes in a general way. Advanced research is 
most closely analogous to precompetitive technology development in the 
commercial sector (i.e., early phases of research and development on 
which commercial competitors are willing to collaborate, because the 
work is not so coupled to specific products and processes that the 
results of the work must be proprietary). It does not include 
development of military systems and hardware where specific requirements 
have been defined. It is typically funded in Advanced Technology 
Development (Budget Activity 3 and Research Category 6.3A) programs 
within Research, Development, Test and Evaluation (RDT&E).
    Applied research. Efforts that attempt to determine and exploit the 
potential of scientific discoveries or improvements in technology such 
as new materials, devices, methods and processes. It typically is funded 
in Applied Research (Budget Activity 2 and Research Category 6.2) 
programs within Research, Development, Test and Evaluation (RDT&E). 
Applied research normally follows basic research but may not be fully 
distinguishable from the related basic research. The term does not 
include efforts whose principal aim is the design, development, or 
testing of specific products, systems or processes to be considered for 
sale or acquisition; these efforts are within the definition of 
``development.''
    Basic research. Efforts directed toward increasing knowledge and 
understanding in science and engineering, rather than the practical 
application of that knowledge and understanding. It typically is funded 
within Basic Research (Budget Activity 1 and Research Category 6.1) 
programs within Research, Development, Test and Evaluation (RDT&E). For 
the purposes of this part, basic research includes:
    (1) Research-related, science and engineering education, including 
graduate fellowships and research traineeships.
    (2) Research instrumentation and other activities designed to 
enhance

[[Page 23]]

the infrastructure for science and engineering research.
    Claim. A written demand or written assertion by one of the parties 
to a grant or cooperative agreement seeking as a matter of right, the 
payment of money in a sum certain, the adjustment or interpretation of 
award terms, or other relief arising under or relating to a grant or 
cooperative agreement. A routine request for payment that is not in 
dispute when submitted is not a claim. The submission may be converted 
to a claim by written notice to the grants officer if it is disputed 
either as to liability or amount, or is not acted upon in a reasonable 
time.
    Debt. Any amount of money or any property owed to a Federal Agency 
by any person, organization, or entity except another United States 
Federal Agency. Debts include any amounts due from insured or guaranteed 
loans, fees, leases, rents, royalties, services, sales of real or 
personal property, or overpayments, penalties, damages, interest, fines 
and forfeitures, and all other claims and similar sources. Amounts due a 
nonappropriated fund instrumentality are not debts owed the United 
States, for the purposes of this subchapter.
    Delinquent debt. A debt:
    (1) That the debtor fails to pay by the date specified in the 
initial written notice from the agency owed the debt, normally within 30 
calendar days, unless the debtor makes satisfactory payment arrangements 
with the agency by that date; and
    (2) With respect to which the debtor has elected not to exercise any 
available appeals or has exhausted all agency appeal processes.
    Development. The systematic use of scientific and technical 
knowledge in the design, development, testing, or evaluation of 
potential new products, processes, or services to meet specific 
performance requirements or objectives. It includes the functions of 
design engineering, prototyping, and engineering testing.
    Electronic commerce. The conduct of business through the use of 
automation and electronic media, in lieu of paper transactions, direct 
personal contact, telephone, or other means. For grants and cooperative 
agreements, electronic commerce can include the use of electronic data 
interchange, electronic mail, electronic bulletin board systems, and 
electronic funds transfer for: program announcements or solicitations; 
applications or proposals; award documents; recipients' requests for 
payment; payment authorizations; and payments.
    Electronic data interchange. The exchange of standardized 
information communicated electronically between business partners, 
typically between computers. It is DoD policy that DoD Component EDI 
applications conform to the American National Standards Institute 
(ANSI), Accredited Standards Committee (ASC) X-12 standard.\1\
---------------------------------------------------------------------------

    \1\ Available from Accredited Standards Committee, X-12 Secretariat, 
Data Interchange Standards Association, 1800 Diagonal Road, Suite 355, 
Alexandria, VA 22314-2852; Attention: Manager Maintenance and 
Publications.
---------------------------------------------------------------------------

    Electronic funds transfer. A system that provides the authority to 
debit or credit accounts in financial institutions by electronic means 
rather than source documents (e.g., paper checks). Processing typically 
occurs through the Federal Reserve System and/or the Automated Clearing 
House (ACH) computer network. It is DoD policy that DoD Component EFT 
transmissions conform to the American National Standards Institute 
(ANSI), Accredited Standards Committee (ASC) X-12 standard.
    Historically Black colleges and universities. Institutions of higher 
education determined by the Secretary of Education to meet the 
requirements of 34 CFR 608.2. Each DoD Component's contracting 
activities and grants officers may obtain a list of historically Black 
colleges and universities from that DoD Component's Small and 
Disadvantaged Business Utilization office.
    Institution of higher education. An educational institution that 
meets the criteria in section 1201(a) of the Higher Education Act of 
1965 (20 U.S.C. 1141(a)). Note, however, that institution of higher 
education has a different meaning in Sec. 22.520, as given at 
Sec. 22.520(b)(2).
    Minority institutions. Institutions of higher education that meet 
the criteria for minority institutions specified in 10

[[Page 24]]

U.S.C. 2323. Each DoD Component's contracting activities and grants 
officers may obtain copies of a current list of institutions that 
qualify as minority institutions under 10 U.S.C. 2323 from that DoD 
Component's Small and Disadvantaged Business Utilization office (the 
list of minority institutions changes periodically, based on Department 
of Education data on institutions' enrollments of minority students).
    Research. Basic, applied, and advanced research, as defined in this 
section.
    Subaward. An award of financial assistance in the form of money, or 
property in lieu of money, made under a DoD grant or cooperative 
agreement by a recipient to an eligible subrecipient. The term includes 
financial assistance for substantive program performance by the 
subrecipient of a portion of the program for which the DoD grant or 
cooperative agreement was made. It does not include the recipient's 
procurement of goods and services needed to carry out the program.



             Subpart B--Selecting the Appropriate Instrument



Sec. 22.200  Purpose.

    This subpart provides the bases for determining the appropriate type 
of instrument in a given situation.



Sec. 22.205  Distinguishing assistance from procurement.

    Before using a grant or cooperative agreement, the grants officer 
shall make a positive judgment that an assistance instrument, rather 
than a procurement contract, is the appropriate instrument, based on the 
following:
    (a) Purpose. (1) The grants officer must judge that the principal 
purpose of the activity to be carried out under the instrument is to 
stimulate or support a public purpose (i.e., to provide assistance), 
rather than acquisition (i.e., to acquire goods and services for the 
direct benefit of the United States Government). If the principal 
purpose is acquisition, then the grants officer shall judge that a 
procurement contract is the appropriate instrument, in accordance with 
31 U.S.C. chapter 63 (``Using Procurement Contracts and Grant and 
Cooperative Agreements''). Assistance instruments shall not be used in 
such situations, except:
    (i) When a statute specifically provides otherwise; or
    (ii) When an exemption is granted, in accordance with Sec. 22.220.
    (2) For research and development, the appropriate use of grants and 
cooperative agreements therefore is almost exclusively limited to the 
performance of selected basic, applied, and advanced research projects. 
Development projects nearly always shall be performed by contract or 
other acquisition transaction because their principal purpose is the 
acquisition of specific deliverable items (e.g., prototypes or other 
hardware) for the benefit of the Department of Defense.
    (b) Fee or profit. Payment of fee or profit is consistent with an 
activity whose principal purpose is the acquisition of goods and 
services for the direct benefit or use of the United States Government, 
rather than an activity whose principal purpose is assistance. 
Therefore, the grants officer shall use a procurement contract, rather 
than an assistance instrument, in all cases where:
    (1) Fee or profit is to be paid to the recipient of the instrument; 
or
    (2) The instrument is to be used to carry out a program where fee or 
profit is necessary to achieving program objectives.



Sec. 22.210  Authority for providing assistance.

    (a) Before a grant or cooperative agreement may be used, the grants 
officer must:
    (1) Identify the program statute, the statute that authorizes the 
DoD Component to carry out the activity the principal purpose of which 
is assistance (see 32 CFR 21.205(b)).
    (2) Review the program statute to determine if it contains 
requirements that affect the:
    (i) Solicitation, selection, and award processes. For example, 
program statutes may authorize assistance to be provided only to certain 
types of recipients; may require that recipients meet certain other 
criteria to be eligible to receive assistance; or require that a 
specific process shall be used to review recipients' proposals.

[[Page 25]]

    (ii) Terms and conditions of the award. For example, some program 
statutes require a specific level of cost sharing or matching.
    (b) The grants officer shall ensure that the award of DoD 
appropriations through a grant or cooperative agreement for a research 
project meets the standards of 10 U.S.C. 2358, DoD's broad authority to 
carry out research, even if the research project is authorized under a 
statutory authority other than 10 U.S.C. 2358. The standards of 10 
U.S.C. 2358 are that, in the opinion of the Head of the DoD Component or 
his or her designee, the projects must be:
    (1) Necessary to the responsibilities of the DoD Component.
    (2) Related to weapons systems and other military needs or of 
potential interest to the DoD Component.



Sec. 22.215  Distinguishing grants and cooperative agreements.

    (a) Once a grants officer judges, in accordance with Secs. 22.205 
and 22.210, that either a grant or cooperative agreement is the 
appropriate instrument, the grants officer shall distinguish between the 
two instruments as follows:
    (1) Grants shall be used when the grants officer judges that 
substantial involvement is not expected between the Department of 
Defense and the recipient when carrying out the activity contemplated in 
the agreement.
    (2) Cooperative agreements shall be used when the grants officer 
judges that substantial involvement is expected. The grants officer 
should document the nature of the substantial involvement that led to 
selection of a cooperative agreement. Under no circumstances are 
cooperative agreements to be used solely to obtain the stricter controls 
typical of a contract.
    (b) In judging whether substantial involvement is expected, grants 
officers should recognize that ``substantial involvement'' is a 
relative, rather than an absolute, concept, and that it is primarily 
based on programmatic factors, rather than requirements for grant or 
cooperative agreement award or administration. For example, substantial 
involvement may include collaboration, participation, or intervention in 
the program or activity to be performed under the award.



Sec. 22.220  Exemptions.

    Under 31 U.S.C. 6307, ``the Director of the Office of Management and 
Budget may exempt an agency transaction or program'' from the 
requirements of 31 U.S.C. chapter 63. Grants officers shall request such 
exemptions only in exceptional circumstances. Each request shall specify 
for which individual transaction or program the exemption is sought; the 
reasons for requesting an exemption; the anticipated consequences if the 
exemption is not granted; and the implications for other agency 
transactions and programs if the exemption is granted. The procedures 
for requesting exemptions shall be:
    (a) In cases where 31 U.S.C. chapter 63 would require use of a 
contract and an exemption from that requirement is desired:
    (1) The grants officer shall submit a request for exemption, through 
appropriate channels established by his or her DoD Component (see 32 CFR 
21.115(b)(1)), to the Director of Defense Procurement (DDP).
    (2) The DDP, after coordination with the Director of Defense 
Research and Engineering (DDR&E), shall transmit the request to OMB or 
notify the DoD Component that the request has been disapproved.
    (b) In other cases, the DoD Component shall submit a request for the 
exemption through appropriate channels to the DDR&E. The DDR&E shall 
transmit the request to OMB or notify the DoD Component that the request 
has been disapproved.
    (c) Where an exemption is granted, documentation of the approval 
shall be maintained in the award file.



                         Subpart C--Competition



Sec. 22.300  Purpose.

    This subpart establishes DoD policy and implements statutes related 
to the use of competitive procedures in the award of grants and 
cooperative agreements.

[[Page 26]]



Sec. 22.305  General policy and requirement for competition.

    (a) It is DoD policy to maximize use of competition in the award of 
grants and cooperative agreements. This also conforms with:
    (1) 31 U.S.C. 6301(3), which encourages the use of competition in 
awarding all grants and cooperative agreements.
    (2) 10 U.S.C. 2374(a), which sets out Congressional policy that any 
new grant for research, development, test, or evaluation be awarded 
through merit-based selection procedures.
    (b) Grants officers shall use merit-based, competitive procedures 
(as defined by Sec. 22.315) to award grants and cooperative agreements:
    (1) In every case where required by statute (e.g., 10 U.S.C. 2361, 
as implemented in Sec. 22.310, for certain grants to institutions of 
higher education).
    (2) To the maximum extent practicable in all cases where not 
required by statute.



Sec. 22.310  Statutes concerning certain research, development, and facilities construction grants.

    (a) Definitions specific to this section. For the purposes of 
implementing the requirements of 10 U.S.C. 2374 in this section, the 
following terms are defined:
    (1) Follow-on grant. A grant that provides for continuation of 
research and development performed by a recipient under a preceding 
grant. Note that follow-on grants are distinct from incremental funding 
actions during the period of execution of a multi-year award.
    (2) New grant. A grant that is not a follow-on grant.
    (b) Statutory requirement to use competitive procedures. (1) A 
grants officer shall not award a grant by other than merit-based, 
competitive procedures (as defined by Sec. 22.315) to an institution of 
higher education for the performance of research and development or for 
the construction of research or other facilities, unless:
    (i) In the case of a new grant for research and development, there 
is a statute meeting the criteria in paragraph (c)(1) of this section;
    (ii) In the case of a follow-on grant for research and development, 
or of a grant for the construction of research or other facilities, 
there is a statute meeting the criteria in paragraph (c)(2) of this 
section; and
    (iii) The Secretary of Defense submits to Congress a written notice 
of intent to make the grant. The grant may not be awarded until 180 
calendar days have elapsed after the date on which Congress received the 
notice of intent. Contracting activities must submit a draft notice of 
intent with supporting documentation through channels to the Deputy 
Director, Defense Research and Engineering.
    (2) Because subsequently enacted statutes may, by their terms, 
impose different requirements than set out in paragraph (b)(1) of this 
section, grants officers shall consult legal counsel on a case-by-case 
basis, when grants for the performance of research and development or 
for the construction of research or other facilities are to be awarded 
to institutions of higher education by other than merit-based 
competitive procedures.
    (c) Subsequent statutes. In accordance with 10 U.S.C. 2361 and 10 
U.S.C. 2374, a provision of law may not be construed as requiring the 
award of a grant through other than the merit-based, competitive 
procedures described in Sec. 22.315, unless:
    (1) Institutions of higher education--new grants for research and 
development. In the case of a new grant for research and development to 
an institution of higher education, such provision of law specifically:
    (i) Identifies the particular institution of higher education 
involved;
    (ii) States that such provision of law modifies or supersedes the 
provisions of 10 U.S.C. 2361 (a requirement that applies only if the 
statute authorizing or requiring award by other than competitive 
procedures was enacted after September 30, 1989); and
    (iii) States that the award to the institution of higher education 
involved is required by such provision of law to be made in 
contravention of the policy set forth in 10 U.S.C. 2374(a).
    (2) Institutions of higher education--follow-on grants for research 
and development and grants for the construction of any research or other 
facility. In the case of any such grant to an institution of

[[Page 27]]

higher education, such provision of law specifically:
    (i) Identifies the particular institution of higher education 
involved; and
    (ii) States that such provision of law modifies or supersedes the 
provisions of 10 U.S.C. 2361 (a requirement that applies only if the 
statute authorizing or requiring award by other than competitive 
procedures was enacted after September 30, 1989).
    (3) Other entities--new grants for research and development--(i) 
General. In the case of a new grant for research and development to an 
entity other than an institution of higher education, such provision of 
law specifically:
    (A) Identifies the particular entity involved;
    (B) States that the award to that entity is required by such 
provision of law to be made in contravention of the policy set forth in 
10 U.S.C. 2374(a).
    (ii) Exception. The requirement of paragraph (c)(3)(i) of this 
section does not apply to any grant that calls upon the National Academy 
of Sciences to:
    (A) Investigate, examine, or experiment upon any subject of science 
or art of significance to the Department of Defense or any Military 
Department; and
    (B) Report on such matters to the Congress or any agency of the 
Federal Government.



Sec. 22.315  Merit-based, competitive procedures.

    Competitive procedures are methods that encourage participation in 
DoD programs by a broad base of the most highly qualified performers. 
These procedures are characterized by competition among as many eligible 
proposers as possible, with a published or widely disseminated notice. 
Competitive procedures include, as a minimum:
    (a) Notice to prospective proposers. The notice may be a notice of 
funding availability or Broad Agency Announcement published in the 
Federal Register or Commerce Business Daily, respectively, or a notice 
that is made available broadly by electronic means. Alternatively, it 
may take the form of a specific notice that is distributed to eligible 
proposers (a specific notice must be distributed to at least two 
eligible proposers to be considered as part of a competitive procedure). 
Notices must include, as a minimum, the following information:
    (1) Programmatic area(s) of interest, in which proposals or 
applications are sought.
    (2) Eligibility criteria for potential recipients (see subpart D of 
this part).
    (3) Criteria that will be used to select the applications or 
proposals that will be funded, and the method for conducting the 
evaluation.
    (4) The type(s) of funding instruments (e.g., grants, cooperative 
agreements, other assistance instruments, or procurement contracts) that 
are anticipated to be awarded pursuant to the announcement.
    (5) Instructions for preparation and submission of a proposal or 
application, including the time by which it must be submitted.
    (b) At least two eligible, prospective proposers.
    (c) Impartial review of the merits of applications or proposals 
received in response to the notice, using the evaluation method and 
selection criteria described in the notice. For research and development 
awards, in order to be considered as part of a competitive procedure, 
the two principal selection criteria, unless statute provides otherwise, 
must be the:
    (1) Technical merits of the proposed research and development; and
    (2) Potential relationship of the proposed research and development 
to Department of Defense missions.



Sec. 22.320  Special competitions.

    Some programs may be competed for programmatic or policy reasons 
among specific classes of potential recipients. An example would be a 
program to enhance U.S. capabilities for academic research and research-
coupled graduate education in defense-critical, science and engineering 
disciplines, a program that would be competed specifically among 
institutions of higher education. All such special competitions shall be 
consistent with program representations in the President's budget 
submission to Congress and with subsequent Congressional authorizations 
and appropriations for the programs.

[[Page 28]]



Sec. 22.325  Historically Black colleges and universities (HBCUs) and other minority institutions (MIs).

    Increasing the ability of HBCUs and MIs to participate in federally 
funded, university programs is an objective of Executive Order 12876 (3 
CFR, 1993 Comp., p. 671) and 10 U.S.C. 2323. Grants officers shall 
include appropriate provisions in Broad Agency Announcements (BAAs) or 
other announcements for programs in which awards to institutions of 
higher education are anticipated, in order to promote participation of 
HBCUs and MIs in such programs. Also, whenever practicable, grants 
officers shall reserve appropriate programmatic areas for exclusive 
competition among HBCUs and MIs when preparing announcements for such 
programs.



    Subpart D--Recipient Qualification Matters--General Policies and 
                               Procedures



Sec. 22.400  Purpose.

    The purpose of this subpart is to specify policies and procedures 
for grants officers' determination of recipient qualifications prior to 
award.



Sec. 22.405  Policy.

    (a) General. Grants officers normally shall award grants or 
cooperative agreements only to qualified recipients that meet the 
standards in Sec. 22.415. This practice conforms with the Governmentwide 
policy, stated at 32 CFR 25.115(a), to do business only with responsible 
persons.
    (b) Exception. In exceptional circumstances, grants officers may 
make awards to recipients that do not fully meet the standards in 
Sec. 22.415 and include special award conditions that are appropriate to 
the particular situation, in accordance with 32 CFR 32.14, 33.12, or 
34.4.



Sec. 22.410  Grants officers' responsibilities.

    The grants officer is responsible for determining a recipient's 
qualification prior to award. The grants officer's signature on the 
award document shall signify his or her determination that either:
    (a) The potential recipient meets the standards in Sec. 22.415 and 
is qualified to receive the grant or cooperative agreement; or
    (b) An award is justified to a recipient that does not fully meet 
the standards, pursuant to Sec. 22.405(b). In such cases, grants 
officers shall document in the award file the rationale for making an 
award to a recipient that does not fully meet the standards.



Sec. 22.415  Standards.

    To be qualified, a potential recipient must:
    (a) Have the management capability and adequate financial and 
technical resources, given those that would be made available through 
the grant or cooperative agreement, to execute the program of activities 
envisioned under the grant or cooperative agreement.
    (b) Have a satisfactory record of executing such programs or 
activities (if a prior recipient of an award).
    (c) Have a satisfactory record of integrity and business ethics.
    (d) Be otherwise qualified and eligible to receive a grant or 
cooperative agreement under applicable laws and regulations (see 
Sec. 22.420(c)).



Sec. 22.420  Pre-award procedures.

    (a) The appropriate method to be used and amount of effort to be 
expended in deciding the qualification of a potential recipient will 
vary. In deciding on the method and level of effort, the grants officer 
should consider factors such as:
    (1) DoD's past experience with the recipient;
    (2) Whether the recipient has previously received cost-type 
contracts, grants, or cooperative agreements from the Federal 
Government; and
    (3) The amount of the prospective award and complexity of the 
project to be carried out under the award.
    (b) There is no DoD-wide requirement to obtain a pre-award credit 
report, audit, or any other specific piece of information. On a case-by-
case basis, the grants officer will decide whether there is a need to 
obtain any such information to assist in deciding whether the recipient 
meets the standards in Sec. 22.415 (a), (b), and (c).

[[Page 29]]

    (1) Should the grants officer in a particular case decide that a 
pre-award credit report, audit, or survey is needed, he or she should 
consult first with the appropriate grants administration office 
(identified in Sec. 22.710), and decide whether pre-existing surveys or 
audits of the recipient, such as those of the recipient's internal 
control systems under OMB Circular A-133 \2\ will satisfy the need (see 
Sec. 22.715(a)(1)).
---------------------------------------------------------------------------

    \2\ Contact the Office of Management and Budget, EOP Publications, 
725 17th St. NW, New Executive Office Building, Washington, DC 20503.
---------------------------------------------------------------------------

    (2) If, after consulting with the grants administration office, the 
grants officer decides to obtain a credit report, audit, or other 
information, and the report or other information discloses that a 
potential recipient is delinquent on a debt to an agency of the United 
States Government, then:
    (i) The grants officer shall take such information into account when 
determining whether the potential recipient is qualified with respect to 
the grant or cooperative agreement; and
    (ii) If the grants officer decides to make the award to the 
recipient, unless there are compelling reasons to do otherwise, the 
grants officer shall delay the award of the grant or cooperative 
agreement until payment is made or satisfactory arrangements are made to 
repay the debt.
    (c) In deciding whether a recipient is otherwise qualified and 
eligible in accordance with the standard in Sec. 22.415(d), the grants 
officer shall ensure that the potential recipient:
    (1) Is not identified on the Governmentwide ``List of Parties 
Excluded from Federal Procurement and Nonprocurement Programs'' as being 
debarred, suspended, or otherwise ineligible to receive the award. The 
grants officer shall check the list of such parties for:
    (i) Potential recipients of prime awards, as described at 32 CFR 
25.505(d);
    (ii) A recipient's principals (e.g., officers, directors, or other 
key employees, as defined at 32 CFR 25.105); and
    (iii) Potential recipients of subawards, where DoD Component 
approval of such principals or lower-tier recipients is required under 
the terms of the award (see 32 CFR 25.505(e)).
    (2) Has provided all certifications and assurances required by 
Federal statute, Executive order, or codified regulation, unless they 
are to be addressed in award terms and conditions at the time of award 
(see Sec. 22.510).
    (3) Meets any eligibility criteria that may be specified in the 
statute authorizing the specific program under which the award is being 
made (see Sec. 22.210(a)(2)).
    (d) Grants officers shall obtain each recipient's Taxpayer 
Identification Number (TIN, which may be the Social Security Number for 
an individual and Employer Identification Number for a business or non-
profit entity) and notify the recipient that the TIN is being obtained 
for purposes of collecting and reporting on any delinquent amounts that 
may arise out of the recipient's relationship with the Government. 
Obtaining the TIN and so notifying the recipient is a statutory 
requirement of 31 U.S.C. 7701, as amended by the Debt Collection 
Improvement Act of 1996 (section 31001(i)(1), Pub. L. 104-134).



                   Subpart E--National Policy Matters



Sec. 22.505  Purpose.

    The purpose of this subpart is to supplement other regulations that 
implement national policy requirements, to the extent that it is 
necessary to provide additional guidance to DoD grants officers. The 
other regulations that implement national policy requirements include:
    (a) The other parts of the DoDGARs (32 CFR parts 32, 33, and 34) 
that implement the Governmentwide guidance in OMB Circulars A-102 \3\ 
and A-110 \4\ on administrative requirements for grants and cooperative 
agreements. Those parts address some national policy matters that appear 
in the OMB Circulars.
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    \3\ See footnote 2 to Sec. 22.420(b)(1).
    \4\ See footnote 2 to Sec. 22.420(b)(1).
---------------------------------------------------------------------------

    (b) DoD regulations other than the DoDGARs.
    (c) Other Federal agencies' regulations.

[[Page 30]]



Sec. 22.510  Certifications, representations, and assurances.

    (a) Certifications--(1) Policy. Certifications of compliance with 
national policy requirements are to be obtained from recipients only for 
those national policies where a statute, Executive order, or codified 
regulation specifically states that a certification is required. Other 
national policy requirements may be addressed by obtaining 
representations or assurances (see paragraph (b) of this section). 
Grants officers should utilize methods for obtaining certifications, in 
accordance with Executive Order 12866 (3 CFR, 1993 Comp., p. 638), that 
minimize administration and paperwork.
    (2) Procedures. (i) When necessary, grants officers may obtain 
individual, written certifications.
    (ii) Whenever possible, and to the extent consistent with statute 
and codified regulation, grants officers should identify the 
certifications that are required for the particular type of recipient 
and program, and consolidate them into a single certification provision 
that cites them by reference.
    (A) Appendix A to this part lists the common certifications and 
cites their applicability. Because some certifications (e.g., the 
certification on lobbying in Appendix A to this part) are required by 
law to be submitted at the time of proposal, rather than at the time of 
award, Appendix A to this part includes language that may be used for 
incorporating common certifications by reference into a proposal.
    (B) If a grants officer elects to have proposers incorporate 
certifications by reference into their proposals, he or she must do so 
in one of the two following ways. When required by statute or codified 
regulation, the solicitation must include the full text of the 
certifications that proposers are to provide by reference. In other 
cases, the grants officer may include language in the solicitation that 
informs the proposers where the full text may be found (e.g., in 
documents or computer network sites that are readily available to the 
public) and offers to provide it to proposers upon request.
    (C) Grants officers may incorporate certifications by reference in 
award documents when doing so is consistent with statute and codified 
regulation. Note that a statute requires submission of the lobbying 
certification in Appendix A to this part at the time of proposal, and 
that 32 CFR 25.510(a) requires submission of certifications regarding 
debarment and suspension at the time of proposal. The provision that a 
grants officer would use to incorporate certifications in award 
documents, when consistent with statute and codified regulation, would 
be similar to the provision in Appendix A to this part, except that it 
would be modified to state that the recipient is providing the required 
certifications by signing the award document or by accepting funds under 
the award.
    (b) Representations and assurances. Many national policies, either 
in statute or in regulation, require recipients of grants and 
cooperative agreements to make representations or provide assurances 
(rather than certifications) that they are in compliance with the 
policies. As discussed in Sec. 22.610(b), Appendix B to this part 
suggests award terms and conditions that may be used to address several 
of the more commonly applicable national policy requirements. These 
terms and conditions may be used to obtain required assurances and 
representations, if the grants officer wishes to do so at the time of 
award, rather than through the use of the standard application form (SF-
424 \5\) or other means at the time of proposal.
---------------------------------------------------------------------------

    \5\ For copies of Standard Forms listed in this part, contact 
regional grants administration offices of the Office of Naval Research. 
Addresses for the offices are listed in the ``DoD Directory of Contract 
Administration Services Components,'' DLAH 4105.4, which can be obtained 
either from: Defense Logistics Agency, Publications Distribution 
Division (DASC-WDM), 8725 John J. Kingman Rd., Suite 0119, Fort Belvoir, 
VA 22060-6220; or from the Defense Contract Management Command home page 
at http://www.dcmc.dcrb.dla.mil.''
---------------------------------------------------------------------------



Sec. 22.515  Provisions of annual appropriations acts.

    An annual appropriations act can include general provisions stating 
national policy requirements that apply to the use of funds (e.g., 
obligation

[[Page 31]]

through a grant or cooperative agreement) appropriated by the act. 
Because these requirements are of limited duration (the period during 
which a given year's appropriations are available for obligation), and 
because they can vary from year to year and from one agency's 
appropriations act to another agency's, the grants officer must know the 
agency(ies) and fiscal year(s) of the appropriations being obligated by 
a given grant or cooperative agreement, and may need to consult legal 
counsel if he or she does not know the requirements applicable to those 
appropriations.



Sec. 22.520  Military recruiting on campus.

    (a) Purpose. The purpose of this section is to implement section 558 
of the National Defense Authorization Act for Fiscal Year 1995 (Pub. L. 
103-337), as it specifically affects grants and cooperative agreements 
(note that section 558 appears as a note to 10 U.S.C. 503). This section 
thereby supplements DoD's primary implementation of section 558, in 32 
CFR part 216, ``Military Recruiting and Reserve Officer Training Corps 
Program Access to Institutions of Higher Education.''
    (b) Definitions specific to this section. In this section:
    (1) Directory information has the following meaning, given in 
section 558(c) of Pub. L. 103-337. It means, with respect to a student, 
the student's name, address, telephone listing, date and place of birth, 
level of education, degrees received, and the most recent previous 
educational institution enrolled in by the student.
    (2) Institution of higher education has a different meaning in this 
section than it does in the rest of this part. The meaning of the term 
in other sections of this part is given at Sec. 22.105. In this section, 
``institution of higher education'' (IHE) has the following meaning, 
given at 32 CFR 216.3. The term means a domestic college, university, or 
subelement thereof providing postsecondary school courses of study, 
including foreign campuses of such domestic institutions. The term 
includes junior colleges, community colleges, and institutions providing 
courses leading to undergraduate and post-graduate degrees. The term 
does not include entities that operate exclusively outside the United 
States, its territories, and possessions. A subelement of an IHE is a 
discrete (although not necessarily autonomous) organizational entity 
that may establish policy or practices affecting military recruiting and 
related actions (e.g., an undergraduate school, law school, medical 
school, or other graduate school).
    (c) Statutory requirement. No funds available to the Department of 
Defense may be provided by grant to any institution of higher education 
that either has a policy of denying or that effectively prevents the 
Secretary of Defense from obtaining, for military recruiting purposes, 
entry to campuses or access to students on campuses or access to 
directory information pertaining to students.
    (d) Policy.--(1) Applicability to subordinate elements of 
institutions of higher education. 32 CFR part 216, DoD's primary 
implementation of section 558, establishes procedures by which the 
Department of Defense identifies institutions of higher education that 
have a policy or practice described in paragraph (c) of this section. In 
cases where those procedures lead to a determination that specific 
subordinate elements of an institution of higher education have such a 
policy or practice, rather than the institution as a whole, 32 CFR part 
216 provides that the prohibition on use of DoD funds applies only to 
those subordinate elements.
    (2) Applicability to cooperative agreements. As a matter of DoD 
policy, the restrictions of section 558, as implemented by 32 CFR part 
216, apply to cooperative agreements, as well as grants.
    (3) Deviations. Grants officers may not deviate from any provision 
of this section without obtaining the prior approval of the Director of 
Defense Research and Engineering. Requests for deviations shall be 
submitted, through appropriate channels, to: Director for Research, 
ODDR&E(R), 3080 Defense Pentagon, Washington, DC 20301-3080.
    (e) Grants officers' responsibilities. A grants officer shall:
    (1) Not award any grant or cooperative agreement to an institution 
of higher education that has been identified pursuant to the procedures 
of 32

[[Page 32]]

CFR part 216. Such institutions are identified on the Governmentwide 
``List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs,'' as being ineligible to receive awards of DoD funds (note 
that 32 CFR 25.505(d) requires the grants officer to check the list 
prior to determining that a recipient is qualified to receive an award).
    (2) [Reserved].
    (3) Not consent to any subaward of DoD funds to such an 
organization, under a grant or cooperative agreement to any recipient, 
if such subaward requires the grants officer's consent.
    (4) Include the clause in paragraph (f) of this section in each 
grant or cooperative agreement with an institution of higher education. 
Note that this requirement does not flow down (i.e., recipients are not 
required to include the clause in subawards).
    (5) If an institution of higher education refuses to accept the 
clause in paragraph (f) of this section:
    (i) Determine that the institution is not qualified with respect to 
the award. The grants officer may award to an alternative recipient.
    (ii) Transmit the name of the institution, through appropriate 
channels, to the Director for Accession Policy, Office of the Assistant 
Secretary of Defense for Force Management Policy, OASD(FMP), 4000 
Defense Pentagon, Washington, DC 20301-4000. This will allow OASD(FMP) 
to decide whether to initiate an evaluation of the institution under 32 
CFR part 216, to determine whether it is an institution that has a 
policy or practice described in paragraph (c) of this section.
    (f) Clause for award documents. The following clause is to be 
included in grants and cooperative agreements with institutions of 
higher education:

``As a condition for receipt of funds available to the Department of 
Defense (DoD) under this award, the recipient agrees that it is not an 
institution of higher education (as defined in 32 CFR part 216) that has 
a policy of denying, and that it is not an institution of higher 
education that effectively prevents, the Secretary of Defense from 
obtaining for military recruiting purposes: (A) Entry to campuses or 
access to students on campuses; or (B) access to directory information 
pertaining to students. If the recipient is determined, using the 
procedures in 32 CFR part 216, to be such an institution of higher 
education during the period of performance of this agreement, and 
therefore to be in breach of this clause, the Government will cease all 
payments of DoD funds under this agreement and all other DoD grants and 
cooperative agreements to the recipient, and it may suspend or terminate 
such grants and agreements unilaterally for material failure to comply 
with the terms and conditions of award.''



Sec. 22.525  Paperwork Reduction Act.

    Grants officers shall include appropriate award terms or conditions, 
if a recipient's activities under an award will be subject to the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3500, et seq.):
    (a) Generally, the Act only applies to Federal agencies--it requires 
agencies to obtain clearance from the Office of Management and Budget 
before collecting information using forms, schedules, questionnaires, or 
other methods calling either for answers to:
    (1) Identical questions from ten or more persons other than 
agencies, instrumentalities, or employees of the United States.
    (2) Questions from agencies, instrumentalities, or employees of the 
United States which are to be used for statistical compilations of 
general public interest.
    (b) The Act applies to similar collections of information by 
recipients of grants or cooperative agreements only when:
    (1) A recipient collects information at the specific request of the 
awarding Federal agency; or
    (2) The terms and conditions of the award require specific approval 
by the agency of the information collection or the collection 
procedures.



Sec. 22.530  Metric system of measurement.

    (a) Statutory requirement. The Metric Conversion Act of 1975, as 
amended by the Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 
205) and implemented by Executive Order 12770 (3 CFR, 1991 Comp., p. 
343), states that:
    (1) The metric system is the preferred measurement system for U.S. 
trade and commerce.

[[Page 33]]

    (2) The metric system of measurement will be used, to the extent 
economically feasible, in federal agencies' procurements, grants, and 
other business-related activities.
    (3) Metric implementation shall not be required to the extent that 
such use is likely to cause significant inefficiencies or loss of 
markets to United States firms.
    (b) Responsibilities. DoD Components shall ensure that the metric 
system is used, to the maximum extent practicable, in measurement-
sensitive activities supported by programs that use grants and 
cooperative agreements, and in measurement-sensitive outputs of such 
programs.



                            Subpart F--Award



Sec. 22.600  Purpose.

    This subpart sets forth grants officers' responsibilities relating 
to the award document and other actions at the time of award.



Sec. 22.605  Grants officers' responsibilities.

    At the time of award, the grants officer is responsible for ensuring 
that:
    (a) The award instrument contains the appropriate terms and 
conditions, in accordance with Sec. 22.610.
    (b) Information about the award is provided to the office 
responsible for preparing reports for the Defense Assistance Award Data 
System (DAADS), to ensure timely and accurate reporting of data required 
by 31 U.S.C. 6101-6106 (see 32 CFR part 21, subpart C).
    (c)(1) In addition to the copy of the award document provided to the 
recipient, a copy is forwarded to the office designated to administer 
the grant or cooperative agreement, and another copy is forwarded to the 
finance and accounting office designated to make the payments to the 
recipient.
    (2) For any award subject to the electronic funds transfer (EFT) 
requirement described in Sec. 22.810(b)(2), the grants officer shall 
include a prominent notification of that fact on the first page of the 
copies forwarded to the recipient, the administrative grants officer, 
and the finance and accounting office. On the first page of the copy 
forwarded to the recipient, the grants officer also shall include a 
prominent notification that the recipient, to be paid, must submit a 
Payment Information Form (Standard Form SF-3881\6\) to the responsible 
DoD payment office, if that payment office does not currently have the 
information (e.g., bank name and account number) needed to pay the 
recipient by EFT.
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    \6\ See footnote 5 to Sec. 22.510(b).
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Sec. 22.610  Award instruments.

    (a) Each award document shall include terms and conditions that:
    (1) Address programmatic requirements (e.g., a statement of work or 
other appropriate terms or conditions that describe the specific goals 
and objectives of the project). The grants officer shall develop such 
terms and conditions in coordination with program officials.
    (2) Provide for the recipient's compliance with:
    (i) Pertinent Federal statutes or Executive orders that apply 
broadly to Federal or DoD assistance awards.
    (ii) Any program-specific requirements that are prescribed in the 
program statute (see Sec. 22.210(a)(2)), or appropriation-specific 
requirements that are stated in the pertinent Congressional 
appropriations (see Sec. 22.515).
    (iii) Pertinent portions of the DoDGARs or other Federal 
regulations, including those that implement the Federal statutes or 
Executive orders described in paragraphs (a)(2) (i) and (ii) of this 
section.
    (3) Specify the grants officer's instructions for post-award 
administration, for any matter where the post-award administration 
provisions in 32 CFR part 32, 33, or 34 give the grants officer options 
for handling the matter. For example, under 32 CFR 32.24(b), the grants 
officers must choose among possible methods for the recipient's 
disposition of program income. It is essential that the grants officer 
identify the option selected in each case, to provide clear instructions 
to the recipient and the grants officer responsible for post-award 
administration of the grant or cooperative agreement.
    (b) To assist grants officers:

[[Page 34]]

    (1) Appendix B to this part provides model clauses to implement 
certain Federal statutes, Executive orders, and regulations (see 
paragraph (a)(2)(i) of this section) that frequently apply to DoD grants 
and cooperative agreements. Grants officers may incorporate the model 
clauses into award terms and conditions, as appropriate. It should be 
noted that Appendix B to this part is an aid, and not an exhaustive list 
of all requirements that apply in all cases. Depending on the 
circumstances of a given award, other statutes, Executive orders, or 
codified regulations also may apply (e.g., Appendix B to this part does 
not list program-specific requirements described in paragraph (a)(2)(ii) 
of this section).
    (2) Appendix C to this part is a list of administrative requirements 
that apply to awards to different types of recipients. It also 
identifies post-award administration issues that the grants officer must 
address in the award terms and conditions.



                     Subpart G--Field Administration



Sec. 22.700  Purpose.

    This subpart prescribes policies and procedures for administering 
grants and cooperative agreements. It does so in conjunction with 32 CFR 
parts 32, 33, and 34, which prescribe administrative requirements for 
particular types of recipients.



Sec. 22.705  Policy.

    (a) DoD policy is to have each recipient deal with a single office, 
to the maximum extent practicable, for post-award administration of its 
grants and cooperative agreements. This reduces burdens on recipients 
that can result when multiple DoD offices separately administer grants 
and cooperative agreements they award to a given recipient. It also 
minimizes unnecessary duplication of field administration services.
    (b) To further reduce burdens on recipients, the office responsible 
for performing field administration services for grants and cooperative 
agreements to a particular recipient shall be, to the maximum extent 
practicable, the same office that is assigned responsibility for 
performing field administration services for contracts awarded to that 
recipient.
    (c) Contracting activities and grants officers therefore shall use 
cross-servicing arrangements whenever practicable and, to the maximum 
extent possible, delegate responsibility for post-award administration 
to the cognizant grants administration offices identified in 
Sec. 22.710.



Sec. 22.710  Assignment of grants administration offices.

    In accordance with the policy stated in Sec. 22.705(b), the DoD 
offices (referred to in this part as ``grants administration offices'') 
that are assigned responsibility for performing field administration 
services for grants and cooperative agreements are (see the ``DoD 
Directory of Contract Administration Services Components,'' DLAH 
4105.4,\7\ for specific addresses of administration offices):
---------------------------------------------------------------------------

    \7\ Copies may be obtained either from the Defense Logistics Agency, 
Publications Distribution Division (DASC-WDM), 8725 John J. Kingman Rd., 
Suite 0119, Fort Belvoir, VA 22060-6220, or from the Defense Contract 
Management Command home page at http://www.dcmc.dcrb.dla.mil.
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    (a) Regional offices of the Office of Naval Research, for grants and 
cooperative agreements with:
    (1) Institutions of higher education and laboratories affiliated 
with such institutions, to the extent that such organizations are 
subject to the university cost principles in OMB Circular A-21.\8\
---------------------------------------------------------------------------

    \8\ See footnote 2 to Sec. 22.420(b)(1).
---------------------------------------------------------------------------

    (2) Nonprofit organizations that are subject to the cost principles 
in OMB Circular A-122,\9\ if their principal business with the 
Department of Defense is research and development.
---------------------------------------------------------------------------

    \9\ See footnote 2 to Sec. 22.420(b)(1).
---------------------------------------------------------------------------

    (b) Field offices of the Defense Contract Management Command, for 
grants and cooperative agreements with all other entities, including:
    (1) For-profit organizations.
    (2) Nonprofit organizations identified in Attachment C of OMB 
Circular A-122 that are subject to for-profit cost principles in 48 CFR 
part 31.
    (3) Nonprofit organizations subject to the cost principles in OMB 
Circular A-122, if their principal business with the

[[Page 35]]

Department of Defense is other than research and development.
    (4) State and local governments.



Sec. 22.715  Grants administration office functions.

    The primary responsibility of cognizant grants administration 
offices shall be to advise and assist grants officers and recipients 
prior to and after award, and to help ensure that recipients fulfill all 
requirements in law, regulation, and award terms and conditions. 
Specific functions include:
    (a) Conducting reviews and coordinating reviews, audits, and audit 
requests. This includes:
    (1) Advising grants officers on the extent to which audits by 
independent auditors (i.e., public accountants or Federal auditors) have 
provided the information needed to carry out their responsibilities. If 
a recipient has had an independent audit in accordance with OMB Circular 
A-133, and the audit report disclosed no material weaknesses in the 
recipient's financial management and other management and control 
systems, additional preaward or closeout audits usually will not be 
needed (see Secs. 22.420(b) and 22.825(b)).
    (2) Performing pre-award surveys, when requested by a grants 
officer, after providing advice described in paragraph (a)(1) of this 
section.
    (3) Reviewing recipients' systems and compliance with Federal 
requirements, in coordination with any reviews and compliance audits 
performed by independent auditors under OMB Circular A-133, or in 
accordance with the terms and conditions of the award. This includes:
    (i) Reviewing recipients' financial management, property management, 
and purchasing systems, to determine the adequacy of such systems.
    (ii) Determining that recipients have drug-free workplace programs, 
as required under 32 CFR part 25.
    (4) Notifying the Office of the Assistant Inspector General for 
Policy and Oversight (OAIG(P&O)), 400 Army-Navy Drive, Arlington, VA 
22202, if either of the following is not available within a reasonable 
period of time (e.g., six months) after the date on which a recipient of 
DoD grants and agreements was to have submitted its audit report under 
OMB Circular A-133 to the OAIG(P&O):
    (i) The recipient's audit report under OMB Circular A-133.
    (ii) The OAIG(P&O)'s desk review of the recipient's audit report, or 
a letter stating that the OAIG(P&O) has decided not to conduct a desk 
review.
    (b) Performing property administration services for Government-owned 
property, and for any property acquired by a recipient, with respect to 
which the recipient has further obligations to the Government.
    (c) Ensuring timely submission of required reports.
    (d) Executing administrative closeout procedures.
    (e) Establishing recipients' indirect cost rates, where the 
Department of Defense is the cognizant or oversight Federal agency with 
the responsibility for doing so.
    (f) Performing other administration functions (e.g., receiving 
recipients' payment requests and transmitting approved payment 
authorizations to payment offices) as delegated by applicable cross-
servicing agreements or letters of delegation.



                  Subpart H--Post-Award Administration



Sec. 22.800  Purpose and relation to other parts.

    This subpart sets forth grants officers' and DoD Components' 
responsibilities for post-award administration, by providing DoD-
specific requirements on payments; debt collection; claims, disputes and 
appeals; and closeout audits.



Sec. 22.805  Post-award requirements in other parts.

    Grants officers responsible for post-award administration of grants 
and cooperative agreements shall administer such awards in accordance 
with the following parts of the DoDGARs, as supplemented by this 
subpart:
    (a) Awards to domestic recipients. Standard administrative 
requirements for grants and cooperative agreements with domestic 
recipients are specified in other parts of the DoDGARs, as follows:

[[Page 36]]

    (1) For awards to domestic institutions of higher education and 
other nonprofit organizations, requirements are specified in 32 CFR part 
32, which is the DoD implementation of OMB Circular A-110.
    (2) For awards to State and local governments, requirements are 
specified in 32 CFR part 33, which is the DoD codification of the 
Governmentwide common rule to implement OMB Circular A-102.
    (3) For awards to domestic for-profit organizations, requirements 
are specified in 32 CFR part 34, which is modeled on the requirements in 
OMB Circular A-110.
    (b) Awards to foreign recipients. DoD Components shall use the 
administrative requirements specified in paragraph (a) of this section, 
to the maximum extent practicable, for grants and cooperative agreements 
to foreign recipients.



Sec. 22.810  Payments.

    (a) Purpose. This section prescribes policies and grants officers' 
post-award responsibilities, with respect to payments to recipients of 
grants and cooperative agreements.
    (b) Policy. (1) It is Governmentwide policy to minimize the time 
elapsing between any payment of funds to a recipient and the recipient's 
disbursement of the funds for program purposes (see 32 CFR 32.22(a) and 
33.21(b), and the implementation of the Cash Management Improvement Act 
at 31 CFR part 205).
    (2) It also is a Governmentwide requirement to use electronic funds 
transfer (EFT) in the payment of any grant for which an application or 
proposal was submitted or renewed on or after July 26, 1996, unless the 
recipient has obtained a waiver by submitting to the head of the 
pertinent Federal agency a certification that it has neither an account 
with a financial institution nor an authorized payment agent. This 
requirement is in 31 U.S.C. 3332, as amended by the Debt Collection 
Improvement Act of 1996 (section 31001(x)(1)(A), Pub. L. 104-134), and 
as implemented by Department of Treasury regulations at 31 CFR part 208. 
As a matter of DoD policy, this requirement applies to cooperative 
agreements, as well as grants. Within the Department of Defense, the 
Defense Finance and Accounting Service implements this EFT requirement, 
and grants officers have collateral responsibilities at the time of 
award, as described in Sec. 22.605(c), and in postaward administration, 
as described in Sec. 22.810(c)(3)(iv).
    (3) Expanding on these Governmentwide policies, DoD policy is for 
DoD Components to use electronic commerce, to the maximum extent 
practicable, in the portions of the payment process for grants and 
cooperative agreements for which grants officers are responsible. In 
cases where recipients submit each payment request to the grants 
officer, this includes using electronic methods to receive recipients' 
requests for payment and to transmit authorizations for payment to the 
DoD payment office. Using electronic methods will improve timeliness and 
accuracy of payments and reduce administrative burdens associated with 
paper-based payments.
    (c) Post-award responsibilities. In cases where the recipient 
submits each payment request to the grants officer, the administrative 
grants officer designated to handle payments for a grant or cooperative 
agreement is responsible for:
    (1) Handling the recipient's requests for payments in accordance 
with DoD implementation of Governmentwide guidance (see 32 CFR 32.22, 
33.21, or 34.12, as applicable).
    (2) Reviewing each payment request to ensure that:
    (i) The request complies with the award terms.
    (ii) Available funds are adequate to pay the request.
    (iii) The recipient will not have excess cash on hand, based on 
expenditure patterns.
    (3) Maintaining a close working relationship with the personnel in 
the finance and accounting office responsible for making the payments. A 
good working relationship is necessary, to ensure timely and accurate 
handling of financial transactions for grants and cooperative 
agreements. Administrative grants officers:
    (i) Should be generally familiar with policies and procedures for 
disbursing

[[Page 37]]

offices that are contained in Chapter 19 of Volume 10 of the DoD 
Financial Management Regulation (the FMR, DoD 7000.14-R\10\).
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    \10\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161. 
Authorized users may also obtain copies from the Defense Technical 
Information Center, 8725 John J. Kingman Rd., Suite 0944, Fort Belvoir, 
VA 22060-6218.
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    (ii) Shall forward authorizations to the designated payment office 
expeditiously, so that payments may be made in accordance with the 
timely payment guidelines in Chapter 19 of Volume 10 of the FMR. Unless 
alternative arrangements are made with the payment office, 
authorizations should be forwarded to the payment office at least 3 
working days before the end of the period specified in the FMR. The 
period specified in the FMR is:
    (A) No more than seven calendar days after receipt of the 
recipient's request by the administrative grants officer, whenever 
electronic commerce is used (i.e., EDI to request and authorize payments 
and electronic funds transfer (EFT) to make payments).
    (B) No more than thirty calendar days after receipt of the 
recipient's request by the administrative grants officer, when it is not 
possible to use electronic commerce and paper transactions are used.
    (C) No more than seven calendar days after each date specified, when 
payments are authorized in advance based on a predetermined payment 
schedule, provided that the payment schedule was received in the 
disbursing office at least 30 calendar days in advance of the date of 
the scheduled payment.
    (iii) Shall ensure that the recipients' Taxpayer Identification 
Number (TIN) is included with each payment authorization forwarded to 
the payment office. This is a statutory requirement of 31 U.S.C. 3325, 
as amended by the Debt Collection Improvement Act of 1996 (section 
31001(y), Pub. L. 104-134).
    (iv) For each award that is required to be paid by EFT (see 
Sec. 22.605(c) and (Sec. 22.810(b)(2)), shall prominently indicate that 
fact in the payment authorization.



Sec. 22.815  Claims, disputes, and appeals.

    (a) Award terms. Grants officers shall include in grants and 
cooperative agreements a term or condition that incorporates the 
procedures of this section for:
    (1) Processing recipient claims and disputes.
    (2) Deciding appeals of grants officers' decisions.
    (b) Submission of claims--(1) Recipient claims. If a recipient 
wishes to submit a claim arising out of or relating to a grant or 
cooperative agreement, the grants officer shall inform the recipient 
that the claim must:
    (i) Be submitted in writing to the grants officer for decision;
    (ii) Specify the nature and basis for the relief requested; and
    (iii) Include all data that supports the claim.
    (2) DoD Component claims. Claims by a DoD Component shall be the 
subject of a written decision by a grants officer.
    (c) Alternative Dispute Resolution (ADR)--(1) Policy. DoD policy is 
to try to resolve all issues concerning grants and cooperative 
agreements by mutual agreement at the grants officer's level. DoD 
Components therefore are encouraged to use ADR procedures to the maximum 
extent practicable. ADR procedures are any voluntary means (e.g., mini-
trials or mediation) used to resolve issues in controversy without 
resorting to formal administrative appeals (see paragraph (e) of this 
section) or to litigation.
    (2) Procedures. (i) The ADR procedures or techniques to be used may 
either be agreed upon by the Government and the recipient in advance 
(e.g., when agreeing on the terms and conditions of the grant or 
cooperative agreement), or may be agreed upon at the time the parties 
determine to use ADR procedures.
    (ii) If a grants officer and a recipient are not able to resolve an 
issue through unassisted negotiations, the grants officer shall 
encourage the recipient to enter into ADR procedures. ADR procedures may 
be used prior to submission of a recipient's claim or at any time prior 
to the Grant Appeal Authority's decision on a recipient's appeal (see 
paragraph (e)(3)(iii) of this section).

[[Page 38]]

    (d) Grants officer decisions. (1) Within 60 calendar days of receipt 
of a written claim, the grants officer shall either:
    (i) Prepare a written decision, which shall include the reasons for 
the decision; shall identify all relevant data on which the decision is 
based; shall identify the cognizant Grant Appeal Authority and give his 
or her mailing address; and shall be included in the award file; or
    (ii) Notify the recipient of a specific date when he or she will 
render a written decision, if more time is required to do so. The notice 
shall inform the recipient of the reason for delaying the decision 
(e.g., the complexity of the claim, a need for more time to complete ADR 
procedures, or a need for the recipient to provide additional 
information to support the claim).
    (2) The decision of the grants officer shall be final, unless the 
recipient decides to appeal. If a recipient decides to appeal a grants 
officer's decision, the grants officer shall encourage the recipient to 
enter into ADR procedures, as described in paragraph (c) of this 
section.
    (e) Formal administrative appeals--(1) Grant appeal authorities. 
Each DoD Component that awards grants or cooperative agreements shall 
establish one or more Grant Appeal Authorities to decide formal, 
administrative appeals in accordance with paragraph (e)(3) of this 
section. Each Grant Appeal Authority shall be either:
    (i) An individual at a grade level in the Senior Executive Service, 
if civilian, or at the rank of Flag or General Officer, if military; or
    (ii) A board chaired by such an individual.
    (2) Right of appeal. A recipient has the right to appeal a grants 
officer's decision to the Grant Appeal Authority (but note that ADR 
procedures, as described in paragraph (c) of this section, are the 
preferred means for resolving any appeal).
    (3) Appeal procedures--(i) Notice of appeal. A recipient may appeal 
a decision of the grants officer within 90 calendar days of receiving 
that decision, by filing a written notice of appeal to the Grant Appeal 
Authority and to the grants officer. If a recipient elects to use an ADR 
procedure, the recipient is permitted an additional 60 calendar days to 
file the written notice of appeal to the Grant Appeal Authority and 
grants officer.
    (ii) Appeal file. Within 30 calendar days of receiving the notice of 
appeal, the grants officer shall forward to the Grant Appeal Authority 
and the recipient the appeal file, which shall include copies of all 
documents relevant to the appeal. The recipient may supplement the file 
with additional documents it deems relevant. Either the grants officer 
or the recipient may supplement the file with a memorandum in support of 
its position. The Grant Appeal Authority may request additional 
information from either the grants officer or the recipient.
    (iii) Decision. The appeal shall be decided solely on the basis of 
the written record, unless the Grant Appeal Authority decides to conduct 
fact-finding procedures or an oral hearing on the appeal. Any fact-
finding or hearing shall be conducted using procedures that the Grant 
Appeal Authority deems appropriate.
    (f) Representation. A recipient may be represented by counsel or any 
other designated representative in any claim, appeal, or ADR proceeding 
brought pursuant to this section, as long as the representative is not 
otherwise prohibited by law or regulation from appearing before the DoD 
Component concerned.
    (g) Non-exclusivity of remedies. Nothing in this section is intended 
to limit a recipient's right to any remedy under the law.



Sec. 22.820  Debt collection.

    (a) Purpose. This section prescribes procedures for establishing 
debts owed by recipients of grants and cooperative agreements, and 
transferring them to payment offices for collection.
    (b) Resolution of indebtedness. The grants officer shall attempt to 
resolve by mutual agreement any claim of a recipient's indebtedness to 
the United States arising out of a grant or cooperative agreement (e.g., 
by a finding that a recipient was paid funds in excess of the amount to 
which the recipient was entitled under the terms and conditions of the 
award).

[[Page 39]]

    (c) Grants officer's decision. In the absence of such mutual 
agreement, any claim of a recipient's indebtedness shall be the subject 
of a grants officer decision, in accordance with Sec. 22.815(b)(2). The 
grants officer shall prepare and transmit to the recipient a written 
notice that:
    (1) Describes the debt, including the amount, the name and address 
of the official who determined the debt (e.g., the grants officer under 
Sec. 22.815(d)), and a copy of that determination.
    (2) Informs the recipient that:
    (i) Within 30 calendar days of the grants officer's decision, the 
recipient shall either pay the amount owed to the grants officer (at the 
address that was provided pursuant to paragraph (c)(1) of this section) 
or inform the grants officer of the recipient's intention to appeal the 
decision.
    (ii) If the recipient elects not to appeal, any amounts not paid 
within 30 calendar days of the grants officer's decision will be a 
delinquent debt.
    (iii) If the recipient elects to appeal the grants officer's 
decision the recipient has 90 calendar days, or 150 calendar days if ADR 
procedures are used, after receipt of the grants officer's decision to 
file the appeal, in accordance with Sec. 22.815(e)(3)(i).
    (iv) The debt will bear interest, and may include penalties and 
other administrative costs, in accordance with the debt collection 
provisions in Chapters 29, 31, and 32 of Volume 5 and Chapters 18 and 19 
of Volume 10 of the DoD Financial Management Regulation (DoD 7000.14-R). 
No interest will be charged if the recipient pays the amount owed within 
30 calendar days of the grants officer's decision. Interest will be 
charged for the entire period from the date the decision was mailed, if 
the recipient pays the amount owed after 30 calendar days.
    (d) Follow-up. Depending upon the response from the recipient, the 
grants officer shall proceed as follows:
    (1) If the recipient pays the amount owed within 30 calendar days to 
the grants officer, the grants officer shall forward the payment to the 
responsible payment office.
    (2) If within 30 calendar days the recipient elects to appeal the 
grants officer's decision, further action to collect the debt is 
deferred, pending the outcome of the appeal. If the final result of the 
appeal is a determination that the recipient owes a debt to the Federal 
Government, the grants officer shall send a demand letter to the 
recipient and transfer responsibility for further debt collection to a 
payment office, as described in paragraph (d)(3) of this section.
    (3) If within 30 calendar days the recipient has neither paid the 
amount due nor provided notice of intent to file an appeal of the grants 
officer's decision, the grants officer shall send a demand letter to the 
recipient, with a copy to the payment office that will be responsible 
for collecting the delinquent debt. The payment office will be 
responsible for any further debt collection activity, including issuance 
of additional demand letters (see Chapter 19 of volume 10 of the DoD 
Financial Management Regulation, DoD 7000.14-R). The grants officer's 
demand letter shall:
    (i) Describe the debt, including the amount, the name and address of 
the official that determined the debt (e.g., the grants officer under 
Sec. 22.815(d)), and a copy of that determination.
    (ii) Notify the recipient that the debt is a delinquent debt that 
bears interest from the date of the grants officer's decision, and that 
penalties and other administrative costs may be assessed.
    (iii) Identify the payment office that is responsible for the 
collection of the debt, and notify the recipient that it may submit a 
proposal to that payment office to defer collection, if immediate 
payment is not practicable.
    (e) Administrative offset. In carrying out the responsibility for 
collecting delinquent debts, a disbursing officer may need to consult 
grants officers, to determine whether administrative offset against 
payments to a recipient owing a delinquent debt would interfere with 
execution of projects being carried out under grants or cooperative 
agreements. Disbursing officers may also ask grants officers whether it 
is feasible to convert payment methods under grants or cooperative 
agreements from advance payments to reimbursements, to facilitate use of 
administrative offset. Grants officers therefore should be familiar with 
guidelines

[[Page 40]]

for disbursing officers, in Chapter 19 of Volume 10 of the Financial 
Management Regulation (DoD 7000.14-R), concerning withholding and 
administrative offset to recover delinquent debts.



Sec. 22.825  Closeout audits.

    (a) Purpose. This section establishes DoD policy for obtaining 
audits at closeout of individual grants and cooperative agreements. It 
thereby supplements the closeout procedures specified in:
    (1) 32 CFR 32.71 and 32.72, for awards to institutions of higher 
education and other nonprofit organizations.
    (2) 32 CFR 33.50 and 33.51, for awards to State and local 
governments.
    (3) 32 CFR 34.61 and 34.62, for awards to for-profit entities.
    (b) Policy. Grants officers shall use their judgment on a case-by-
case basis, in deciding whether to obtain an audit prior to closing out 
a grant or cooperative agreement (i.e., there is no specific DoD 
requirement to obtain an audit prior to doing so). Factors to be 
considered include:
    (1) The amount of the award.
    (2) DoD's past experience with the recipient, including the presence 
or lack of findings of material deficiencies in recent:
    (i) Audits of individual awards; or
    (ii) Systems-wide financial audits and audits of the compliance of 
the recipient's systems with Federal requirements, under OMB Circular A-
133, where that Circular is applicable. (See Sec. 22.715(a)(1)).


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PART 25--GOVERNMENTWIDE DEBARMENT AND SUSPENSION (NONPROCUREMENT) AND GOVERNMENTWIDE REQUIREMENTS FOR DRUG-FREE WORKPLACE (GRANTS)--Table of Contents




                           Subpart A--General

Sec.
25.100  Purpose.
25.105  Definitions.
25.110  Coverage.
25.115  Policy.

                       Subpart B--Effect of Action

25.200  Debarment or suspension.
25.205  Ineligible persons.
25.210  Voluntary exclusion.
25.215  Exception provision.
25.220  Continuation of covered transactions.
25.225  Failure to adhere to restrictions.

                          Subpart C--Debarment

25.300  General.
25.305  Causes for debarment.
25.310  Procedures.
25.311  Investigation and referral.
25.312  Notice of proposed debarment.
25.313  Opportunity to contest proposed debarment.
25.314  Debarring official's decision.
25.315  Settlement and voluntary exclusion.
25.320  Period of debarment.
25.325  Scope of debarment.

                          Subpart D--Suspension

25.400  General.
25.405  Causes for suspension.
25.410  Procedures.
25.411  Notice of suspension.
25.412  Opportunity to contest suspension.
25.413  Suspending official's decision.
25.415  Period of suspension.
25.420  Scope of suspension.

      Subpart E--Responsibilities of GSA, Agencies and Participants

25.500  GSA responsibilities.
25.505  Military Departments and Defense Agencies' responsibility.
25.510  Participants' responsibilities.

          Subpart F--Drug-Free Workplace Requirements (Grants)

25.600  Purpose.
25.605  Definitions.
25.610  Coverage.
25.615  Grounds for suspension of payments, suspension or termination of 
          grants, or suspension or debarment.
25.616  Determinations of grantee violations.
25.620  Effect of violation.
25.625  Exception provision.
25.630  Certification requirements and procedures.
25.635  Reporting of and employee sanctions for convictions of criminal 
          drug offenses.

Appendix A to Part 25--Certification Regarding Debarment, Suspension, 
          and Other Responsibility Matters--Primary Covered Transactions
Appendix B to Part 25--Certification Regarding Debarment, Suspension, 
          Ineligibility and Voluntary Exclusion--Lower Tier Covered 
          Transactions
Appendix C to Part 25--Certification Regarding Drug-Free Workplace 
          Requirements

    Authority: 41 U.S.C. 701 et seq.; sec. 2455, Pub. L. 103-355, 108 
Stat. 3327 (31 U.S.C. 6101 note); E.O. 12549, 3 CFR, 1986 Comp.; 189; 
E.O. 12689, 3 CFR, 1989 Comp., p. 235.

    Source: 53 FR 19190 and 19204, May 26, 1988, unless otherwise noted. 
Redesignated at 57 FR 6199, Feb. 21, 1992.

    Cross Reference: See also Office of Management and Budget notice 
published at 55 FR 21697, May 25, 1990, and 60 FR 33036, June 26, 1995.



                           Subpart A--General



Sec. 25.100  Purpose.

    (a) Executive Order (E.O.) 12549 provides that, to the extent 
permitted by law, Executive departments and agencies shall participate 
in a governmentwide system for nonprocurement debarment and suspension. 
A person who is debarred or suspended shall be excluded from Federal 
financial and nonfinancial assistance and benefits under Federal 
programs and activities. Debarment or suspension of a participant in a 
program by one agency shall have governmentwide effect.
    (b) These regulations implement section 3 of E.O. 12549 and the 
guidelines promulgated by the Office of Management and Budget under 
section 6 of the E.O. by:
    (1) Prescribing the programs and activities that are covered by the 
governmentwide system;
    (2) Prescribing the governmentwide criteria and governmentwide 
minimum due process procedures that each agency shall use;
    (3) Providing for the listing of debarred and suspended 
participants, participants declared ineligible (see

[[Page 54]]

definition of ``ineligible'' in Sec. 25.105), and participants who have 
voluntarily excluded themselves from participation in covered 
transactions;
    (4) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion; and
    (5) Offering such other guidance as necessary for the effective 
implementation and administration of the governmentwide system.
    (c) These regulations also implement Executive Order 12689 (3 CFR, 
1989 Comp., p. 235) and 31 U.S.C. 6101 note (Public Law 103-355, sec. 
2455, 108 Stat. 3327) by--
    (1) Providing for the inclusion in the List of Parties Excluded from 
Federal Procurement and Nonprocurement Programs all persons proposed for 
debarment, debarred or suspended under the Federal Acquisition 
Regulation, 48 CFR Part 9, subpart 9.4; persons against which 
governmentwide exclusions have been entered under this part; and persons 
determined to be ineligible; and
    (2) Setting forth the consequences of a debarment, suspension, 
determination of ineligibility, or voluntary exclusion.
    (d) Although these regulations cover the listing of ineligible 
participants and the effect of such listing, they do not prescribe 
policies and procedures governing declarations of ineligibility.
[60 FR 33040, 33053, June 26, 1995]



Sec. 25.105  Definitions.

    The following definitions apply to this part:
    Adequate evidence. Information sufficient to support the reasonable 
belief that a particular act or omission has occurred.
    Affiliate. Persons are affiliates of each other if, directly or 
indirectly, either one controls or has the power to control the other, 
or, a third person controls or has the power to control both. Indicia of 
control include, but are not limited to: interlocking management or 
ownership, identity of interests among family members, shared facilities 
and equipment, common use of employees, or a business entity organized 
following the suspension or debarment of a person which has the same or 
similar management, ownership, or principal employees as the suspended, 
debarred, ineligible, or voluntarily excluded person.
    Agency. Any executive department, military department or defense 
agency or other agency of the executive branch, excluding the 
independent regulatory agencies.
    (a) The meaning of agency in Subpart F of this part, Drug-Free 
Workplace Requirements, is given at Sec. 25.605(b)(6) and is different 
than the meaning given in this section for subparts A through E of this 
part. Agency in Subpart F of this part means the Department of Defense 
or a Military Department only, and does not include any Defense Agency.
    (b) [Reserved]
    Civil judgment. The disposition of a civil action by any court of 
competent jurisdiction, whether entered by verdict, decision, 
settlement, stipulation, or otherwise creating a civil liability for the 
wrongful acts complained of; or a final determination of liability under 
the Program Fraud Civil Remedies Act of 1988 (31 U.S.C. 3801-12).
    Conviction. A judgment or conviction of a criminal offense by any 
court of competent jurisdiction, whether entered upon a verdict or a 
plea, including a plea of nolo contendere.
    Debarment. An action taken by a debarring official in accordance 
with these regulations to exclude a person from participating in covered 
transactions. A person so excluded is ``debarred.''
    Debarring official. An official authorized to impose debarment. The 
debarring official is either:
    (a) The agency head, or
    (b) An official designated by the agency head.
    (c) DoD Components' debarring officials for nonprocurement 
transactions are the same officials identified in 48 CFR part 209, 
subpart 209.4, as debarring officials for procurement contracts.
    Indictment. Indictment for a criminal offense. An information or 
other filing by competent authority charging a criminal offense shall be 
given the same effect as an indictment.
    Ineligible. Excluded from participation in Federal nonprocurement 
programs pursuant to a determination of

[[Page 55]]

ineligibility under statutory, executive order, or regulatory authority, 
other than Executive Order 12549 and its agency implementing 
regulations; for exemple, excluded pursuant to the Davis-Bacon Act and 
its implementing regulations, the equal employment opportunity acts and 
executive orders, or the environmental protection acts and executive 
orders. A person is ineligible where the determination of ineligibility 
affects such person's eligibility to participate in more than one 
covered transaction.
    Legal proceedings. Any criminal proceeding or any civil judicial 
proceeding to which the Federal Government or a State or local 
government or quasi-governmental authority is a party. The term includes 
appeals from such proceedings.
    List of Parties Excluded from Federal Procurement and Nonprocurement 
Programs. A list compiled, maintained and distributed by the General 
Services Administration (GSA) containing the names and other information 
about persons who have been debarred, suspended, or voluntarily excluded 
under Executive Orders 12549 and 12689 and these regulations or 48 CFR 
part 9, subpart 9.4, persons who have been proposed for debarment under 
48 CFR part 9, subpart 9.4, and those persons who have been determined 
to be ineligible.
    Notice. A written communication served in person or sent by 
certified mail, return receipt requested, or its equivalent, to the last 
known address of a party, its identified counsel, its agent for service 
of process, or any partner, officer, director, owner, or joint venturer 
of the party. Notice, if undeliverable, shall be considered to have been 
received by the addressee five days after being properly sent to the 
last address known by the agency.
    Participant. Any person who submits a proposal for, enters into, or 
reasonably may be expected to enter into a covered transaction. This 
term also includes any person who acts on behalf of or is authorized to 
commit a participant in a covered transaction as an agent or 
representative of another participant.
    Person. Any individual, corporation, partnership, association, unit 
of government or legal entity, however organized, except: foreign 
governments or foreign governmental entities, public international 
organizations, foreign government owned (in whole or in part) or 
controlled entities, and entities consisting wholly or partially of 
foreign governments or foreign governmental entities.
    Preponderance of the evidence. Proof by information that, compared 
with that opposing it, leads to the conclusion that the fact at issue is 
more probably true than not.
    Principal. Officer, director, owner, partner, key employee, or other 
person within a participant with primary management or supervisory 
responsibilities; or a person who has a critical influence on or 
substantive control over a covered transaction, whether or not employed 
by the participant. Persons who have a critical influence on or 
substantive control over a covered transaction are:
    (a) Principal investigators.
    (b) Reserved.
    Proposal. A solicited or unsolicited bid, application, request, 
invitation to consider or similar communication by or on behalf of a 
person seeking to participate or to receive a benefit, directly or 
indirectly, in or under a covered transaction.
    Respondent. A person against whom a debarment or suspension action 
has been initiated.
    State. Any of the States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, any territory or possession 
of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers that instrumentality to be an agency of the 
State government.
    Suspending official. An official authorized to impose suspension. 
The suspending official is either:
    (a) The agency head, or
    (b) An official designated by the agency head.
    (c) DoD Components' suspending officials for nonprocurement 
transactions are the same officials identified in 48

[[Page 56]]

CFR part 209, subpart 209.4, as suspending officials for procurement 
contracts.
    Suspension. An action taken by a suspending official in accordance 
with these regulations that immediately excludes a person from 
participating in covered transactions for a temporary period, pending 
completion of an investigation and such legal, debarment, or Program 
Fraud Civil Remedies Act proceedings as may ensue. A person so excluded 
is ``suspended.''
    Voluntary exclusion or voluntarily excluded. A status of 
nonparticipation or limited participation in covered transactions 
assumed by a person pursuant to the terms of a settlement.
[53 FR 19190 and 19204, May 26, 1988. Redesignated at 57 FR 6199, Feb. 
21, 1992, and amended at 60 FR 33041, 33053, June 26, 1995]



Sec. 25.110  Coverage.

    (a) These regulations apply to all persons who have participated, 
are currently participating or may reasonably be expected to participate 
in transactions under Federal nonprocurement programs. For purposes of 
these regulations such transactions will be referred to as ``covered 
transactions.''
    (1) Covered transaction. For purposes of these regulations, a 
covered transaction is a primary covered transaction or a lower tier 
covered transaction. Covered transactions at any tier need not involve 
the transfer of Federal funds.
    (i) Primary covered transaction. Except as noted in paragraph (a)(2) 
of this section, a primary covered transaction is any nonprocurement 
transaction between an agency and a person, regardless of type, 
including: grants, cooperative agreements, scholarships, fellowships, 
contracts of assistance, loans, loan guarantees, subsidies, insurance, 
payments for specified use, donation agreements and any other 
nonprocurement transactions between a Federal agency and a person. 
Primary covered transactions also include those transactions specially 
designated by the U.S. Department of Housing and Urban Development in 
such agency's regulations governing debarment and suspension.
    (ii) Lower tier covered transaction. A lower tier covered 
transaction is:
    (A) Any transaction between a participant and a person other than a 
procurement contract for goods or services, regardless of type, under a 
primary covered transaction.
    (B) Any procurement contract for goods or services between a 
participant and a person, regardless of type, expected to equal or 
exceed the Federal procurement small purchase threshold fixed at 10 
U.S.C. 2304(g) and 41 U.S.C. 253(g) (currently $25,000) under a primary 
covered transaction.
    (C) Any procurement contract for goods or services between a 
participant and a person under a covered transaction, regardless of 
amount, under which that person will have a critical influence on or 
substantive control over that covered transaction. Such persons are:
    (1) Principal investigators.
    (2) Providers of federally-required audit services.
    (2) Exceptions. The following transactions are not covered:
    (i) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (ii) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, entities 
consisting wholly or partially of foreign governments or foreign 
governmental entities;
    (iii) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility (but benefits received 
in an individual's business capacity are not excepted);
    (iv) Federal employment;
    (v) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (vi) Incidental benefits derived from ordinary governmental 
operations; and
    (vii) Other transactions where the application of these regulations 
would be prohibited by law.
    (b) Relationship to other sections. This section describes the types 
of transactions to which a debarment or suspension under the regulations 
will

[[Page 57]]

apply. Subpart B, ``Effect of Action,'' Sec. 25.200, ``Debarment or 
suspension,'' sets forth the consequences of a debarment or suspension. 
Those consequences would obtain only with respect to participants and 
principals in the covered transactions and activities described in 
Sec. 25.110(a). Sections 25.325, ``Scope of debarment,'' and 25.420, 
``Scope of suspension,'' govern the extent to which a specific 
participant or organizational elements of a participant would be 
automatically included within a debarment or suspension action, and the 
conditions under which affiliates or persons associated with a 
participant may also be brought within the scope of the action.
    (c) Relationship to Federal procurement activities. In accordance 
with E.O. 12689 and section 2455 of Public Law 103-355, any debarment, 
suspension, proposed debarment or other governmentwide exclusion 
initiated under the Federal Acquisition Regulation (FAR) on or after 
August 25, 1995 shall be recognized by and effective for Executive 
Branch agencies and participants as an exclusion under this regulation. 
Similarly, any debarment, suspension or other governmentwide exclusion 
initiated under this regulation on or after August 25, 1995 shall be 
recognized by and effective for those agencies as a debarment or 
suspension under the FAR.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199, Feb. 21, 1992; 60 FR 33041, 33053, June 26, 1995]



Sec. 25.115  Policy.

    (a) In order to protect the public interest, it is the policy of the 
Federal Government to conduct business only with responsible persons. 
Debarment and suspension are discretionary actions that, taken in 
accordance with Executive Order 12549 and these regulations, are 
appropriate means to implement this policy.
    (b) Debarment and suspension are serious actions which shall be used 
only in the public interest and for the Federal Government's protection 
and not for purposes of punishment. Agencies may impose debarment or 
suspension for the causes and in accordance with the procedures set 
forth in these regulations.
    (c) When more than one agency has an interest in the proposed 
debarment or suspension of a person, consideration shall be given to 
designating one agency as the lead agency for making the decision. 
Agencies are encouraged to establish methods and procedures for 
coordinating their debarment or suspension actions.



                       Subpart B--Effect of Action



Sec. 25.200  Debarment or suspension.

    (a) Primary covered transactions. Except to the extent prohibited by 
law, persons who are debarred or suspended shall be excluded from 
primary covered transactions as either participants or principals 
throughout the Executive Branch of the Federal Government for the period 
of their debarment, suspension, or the period they are proposed for 
debarment under 48 CFR part 9, subpart 9.4. Accordingly, no agency shall 
enter into primary covered transactions with such excluded persons 
during such period, except as permitted pursuant to Sec. 25.215.
    (b) Lower tier covered transactions. Except to the extent prohibited 
by law, persons who have been proposed for debarment under 48 CFR part 
9, subpart 9.4, debarred or suspended shall be excluded from 
participating as either participants or principals in all lower tier 
covered transactions (see Sec. 25.110(a)(1)(ii)) for the period of their 
exclusion.
    (c) Exceptions. Debarment or suspension does not affect a person's 
eligibility for--
    (1) Statutory entitlements or mandatory awards (but not subtier 
awards thereunder which are not themselves mandatory), including 
deposited funds insured by the Federal Government;
    (2) Direct awards to foreign governments or public international 
organizations, or transactions with foreign governments or foreign 
governmental entities, public international organizations, foreign 
government owned (in whole or in part) or controlled entities, and 
entities consisting wholly or partially of foreign governments or 
foreign governmental entities;
    (3) Benefits to an individual as a personal entitlement without 
regard to the individual's present responsibility

[[Page 58]]

(but benefits received in an individual's business capacity are not 
excepted);
    (4) Federal employment;
    (5) Transactions pursuant to national or agency-recognized 
emergencies or disasters;
    (6) Incidental benefits derived from ordinary governmental 
operations; and
    (7) Other transactions where the application of these regulations 
would be prohibited by law.
[60 FR 33041, 33053, June 26, 1995]



Sec. 25.205  Ineligible persons.

    Persons who are ineligible, as defined in Sec. 25.105(i), are 
excluded in accordance with the applicable statutory, executive order, 
or regulatory authority.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.210  Voluntary exclusion.

    Persons who accept voluntary exclusions under Sec. 25.315 are 
excluded in accordance with the terms of their settlements. Military 
Departments and Defense Agencies shall, and participants may, contact 
the original action agency to ascertain the extent of the exclusion.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.215  Exception provision.

    Military Departments & Defense Agencies may grant an exception 
permitting a debarred, suspended, or voluntarily excluded person, or a 
person proposed for debarment under 48 CFR part 9, subpart 9.4, to 
participate in a particular covered transaction upon a written 
determination by the agency head or an authorized designee stating the 
reason(s) for deviating from the Presidential policy established by 
Executive Order 12549 and Sec. 25.200. However, in accordance with the 
President's stated intention in the Executive Order, exceptions shall be 
granted only infrequently. Exceptions shall be reported in accordance 
with Sec. 25.505(a).
[60 FR 33041, 33053, June 26, 1995]



Sec. 25.220  Continuation of covered transactions.

    (a) Notwithstanding the debarment, suspension, proposed debarment 
under 48 CFR part 9, subpart 9.4, determination of ineligibility, or 
voluntary exclusion of any person by an agency, agencies and 
participants may continue covered transactions in existence at the time 
the person was debarred, suspended, proposed for debarment under 48 CFR 
part 9, subpart 9.4, declared ineligible, or voluntarily excluded. A 
decision as to the type of termination action, if any, to be taken 
should be made only after thorough review to ensure the propriety of the 
proposed action.
    (b) Agencies and participants shall not renew or extend covered 
transactions (other than no-cost time extensions) with any person who is 
debarred, suspended, proposed for debarment under 48 CFR part 9, subpart 
9.4, ineligible or voluntary excluded, except as provided in 
Sec. 25.215.
[60 FR 33041, 33053, June 26, 1995]



Sec. 25.225  Failure to adhere to restrictions.

    (a) Except as permitted under Sec. 25.215 or Sec. 25.220, a 
participant shall not knowingly do business under a covered transaction 
with a person who is--
    (1) Debarred or suspended;
    (2) Proposed for debarment under 48 CFR part 9, subpart 9.4; or
    (3) Ineligible for or voluntarily excluded from the covered 
transaction.
    (b) Violation of the restriction under paragraph (a) of this section 
may result in disallowance of costs, annulment or termination of award, 
issuance of a stop work order, debarment or suspension, or other 
remedies as appropriate.
    (c) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, proposed for debarment under 48 
CFR part 9, subpart 9.4, ineligible, or voluntarily excluded from the 
covered transaction (See Appendix B of these regulations), unless it 
knows that the certification is erroneous. An agency has the burden of 
proof that a participant did knowingly

[[Page 59]]

do business with a person that filed an erroneous certification.
[60 FR 33041, 33053, June 26, 1995]



                          Subpart C--Debarment



Sec. 25.300  General.

    The debarring official may debar a person for any of the causes in 
Sec. 25.305, using procedures established in Secs. 25.310 through 
25.314. The existence of a cause for debarment, however, does not 
necessarily require that the person be debarred; the seriousness of the 
person's acts or omissions and any mitigating factors shall be 
considered in making any debarment decision.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.305  Causes for debarment.

    Debarment may be imposed in accordance with the provisions of 
Secs. 25.300 through 25.314 for:
    (a) Conviction of or civil judgment for:
    (1) Commission of fraud or a criminal offense in connection with 
obtaining, attempting to obtain, or performing a public or private 
agreement or transaction;
    (2) Violation of Federal or State antitrust statutes, including 
those proscribing price fixing between competitors, allocation of 
customers between competitors, and bid rigging;
    (3) Commission of embezzlement, theft, forgery, bribery, 
falsification or destruction of records, making false statements, 
receiving stolen property, making false claims, or obstruction of 
justice; or
    (4) Commission of any other offense indicating a lack of business 
integrity or business honesty that seriously and directly affects the 
present responsibility of a person.
    (b) Violation of the terms of a public agreement or transaction so 
serious as to affect the integrity of an agency program, such as:
    (1) A willful failure to perform in accordance with the terms of one 
or more public agreements or transactions;
    (2) A history of failure to perform or of unsatisfactory performance 
of one or more public agreements or transactions; or
    (3) A willful violation of a statutory or regulatory provision or 
requirement applicable to a public agreement or transaction.
    (c) Any of the following causes:
    (1) A nonprocurement debarment by any Federal agency taken before 
October 1, 1988, the effective date of these regulations, or a 
procurement debarment by any Federal agency taken pursuant to 48 CFR 
subpart 9.4;
    (2) Knowingly doing business with a debarred, suspended, ineligible, 
or voluntarily excluded person, in connection with a covered 
transaction, except as permitted in Sec. 25.215 or Sec. 25.220;
    (3) Failure to pay a single substantial debt, or a number of 
outstanding debts (including disallowed costs and overpayments, but not 
including sums owed the Federal Government under the Internal Revenue 
Code) owed to any Federal agency or instrumentality, provided the debt 
is uncontested by the debtor or, if contested, provided that the 
debtor's legal and administrative remedies have been exhausted;
    (4) Violation of a material provision of a voluntary exclusion 
agreement entered into under Sec. 25.315 or of any settlement of a 
debarment or suspension action; or
    (5) Violation of any requirement of subpart F of this part, relating 
to providing a drug-free workplace, as set forth in Sec. 25.615 of this 
part.
    (d) Any other cause of so serious or compelling a nature that it 
affects the present responsibility of a person.
[53 FR 19190 and 19204, May 26, 1988, as amended at 54 FR 4950, 4960, 
Jan. 31, 1989. Redesignated and amended at 57 FR 6199 and 6200, Feb. 21, 
1992]



Sec. 25.310  Procedures.

    Military Departments and Defense Agencies shall process debarment 
actions as informally as practicable, consistent with the principles of 
fundamental fairness, using the procedures in Secs. 25.311 through 
25.314.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]

[[Page 60]]



Sec. 25.311  Investigation and referral.

    Information concerning the existence of a cause for debarment from 
any source shall be promptly reported, investigated, and referred, when 
appropriate, to the debarring official for consideration. After 
consideration, the debarring official may issue a notice of proposed 
debarment.



Sec. 25.312  Notice of proposed debarment.

    A debarment proceeding shall be initiated by notice to the 
respondent advising:
    (a) That debarment is being considered;
    (b) Of the reasons for the proposed debarment in terms sufficient to 
put the respondent on notice of the conduct or transaction(s) upon which 
it is based;
    (c) Of the cause(s) relied upon under Sec. 25.305 for proposing 
debarment;
    (d) Of the provisions of Secs. 25.311 through 25.314, and any other 
Military Departments and Defense Agencies procedures, if applicable, 
governing debarment decisionmaking; and
    (e) Of the potential effect of a debarment.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.313  Opportunity to contest proposed debarment.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of proposed debarment, the respondent may submit, in person, in 
writing, or through a representative, information and argument in 
opposition to the proposed debarment.
    (b) Additional proceedings as to disputed material facts. (1) In 
actions not based upon a conviction or civil judgment, if the debarring 
official finds that the respondent's submission in opposition raises a 
genuine dispute over facts material to the proposed debarment, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents.
    (2) A transcribed record of any additional proceedings shall be made 
available at cost to the respondent, upon request, unless the respondent 
and the agency, by mutual agreement, waive the requirement for a 
transcript.



Sec. 25.314  Debarring official's decision.

    (a) No additional proceedings necessary. In actions based upon a 
conviction or civil judgment, or in which there is no genuine dispute 
over material facts, the debarring official shall make a decision on the 
basis of all the information in the administrative record, including any 
submission made by the respondent. The decision shall be made within 45 
days after receipt of any information and argument submitted by the 
respondent, unless the debarring official extends this period for good 
cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The debarring 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The debarring official may refer disputed material facts to 
another official for findings of fact. The debarring official may reject 
any such findings, in whole or in part, only after specifically 
determining them to be arbitrary and capricious or clearly erroneous.
    (3) The debarring official's decision shall be made after the 
conclusion of the proceedings with respect to disputed facts.
    (c) (1) Standard of proof. In any debarment action, the cause for 
debarment must be established by a preponderance of the evidence. Where 
the proposed debarment is based upon a conviction or civil judgment, the 
standard shall be deemed to have been met.
    (2) Burden of proof. The burden of proof is on the agency proposing 
debarment.
    (d) Notice of debarring official's decision. (1) If the debarring 
official decides to impose debarment, the respondent shall be given 
prompt notice:
    (i) Referring to the notice of proposed debarment;
    (ii) Specifying the reasons for debarment;

[[Page 61]]

    (iii) Stating the period of debarment, including effective dates; 
and
    (iv) Advising that the debarment is effective for covered 
transactions throughout the executive branch of the Federal Government 
unless an agency head or an authorized designee makes the determination 
referred to in Sec. 25.215.
    (2) If the debarring official decides not to impose debarment, the 
respondent shall be given prompt notice of that decision. A decision not 
to impose debarment shall be without prejudice to a subsequent 
imposition of debarment by any other agency.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.315  Settlement and voluntary exclusion.

    (a) When in the best interest of the Government, Military 
Departments and Defense Agencies may, at any time, settle a debarment or 
suspension action.
    (b) If a participant and the agency agree to a voluntary exclusion 
of the participant, such voluntary exclusion shall be entered on the 
Nonprocurement List (see subpart E).



Sec. 25.320  Period of debarment.

    (a) Debarment shall be for a period commensurate with the 
seriousness of the cause(s). If a suspension precedes a debarment, the 
suspension period shall be considered in determining the debarment 
period.
    (1) Debarment for causes other than those related to a violation of 
the requirements of subpart F of this part generally should not exceed 
three years. Where circumstances warrant, a longer period of debarment 
may be imposed.
    (2) In the case of a debarment for a violation of the requirements 
of subpart F of this part (see Sec. 25.305(c)(5)), the period of 
debarment shall not exceed five years.
    (b) The debarring official may extend an existing debarment for an 
additional period, if that official determines that an extension is 
necessary to protect the public interest. However, a debarment may not 
be extended solely on the basis of the facts and circumstances upon 
which the initial debarment action was based. If debarment for an 
additional period is determined to be necessary, the procedures of 
Secs. 25.311 through 25.314 shall be followed to extend the debarment.
    (c) The respondent may request the debarring official to reverse the 
debarment decision or to reduce the period or scope of debarment. Such a 
request shall be in writing and supported by documentation. The 
debarring official may grant such a request for reasons including, but 
not limited to:
    (1) Newly discovered material evidence;
    (2) Reversal of the conviction or civil judgment upon which the 
debarment was based;
    (3) Bona fide change in ownership or management;
    (4) Elimination of other causes for which the debarment was imposed; 
or
    (5) Other reasons the debarring official deems appropriate.
[53 FR 19190 and 19204, May 26, 1988, as amended at 54 FR 4950, 4960, 
Jan. 31, 1989. Redesignated and amended at 57 FR 6199 and 6200, Feb. 21, 
1992]



Sec. 25.325  Scope of debarment.

    (a) Scope in general. (1) Debarment of a person under these 
regulations constitutes debarment of all its divisions and other 
organizational elements from all covered transactions, unless the 
debarment decision is limited by its terms to one or more specifically 
identified individuals, divisions or other organizational elements or to 
specific types of transactions.
    (2) The debarment action may include any affiliate of the 
participant that is specifically named and given notice of the proposed 
debarment and an opportunity to respond (see Secs. 25.311 through 
25.314).
    (b) Imputing conduct. For purposes of determining the scope of 
debarment, conduct may be imputed as follows:
    (1) Conduct imputed to participant. The fraudulent, criminal or 
other seriously improper conduct of any officer, director, shareholder, 
partner, employee, or other individual associated with a participant may 
be imputed to the participant when the conduct occurred in connection 
with the individual's performance of duties for or on behalf of the

[[Page 62]]

participant, or with the participant's knowledge, approval, or 
acquiescence. The participant's acceptance of the benefits derived from 
the conduct shall be evidence of such knowledge, approval, or 
acquiescence.
    (2) Conduct imputed to individuals associated with participant. The 
fraudulent, criminal, or other seriously improper conduct of a 
participant may be imputed to any officer, director, shareholder, 
partner, employee, or other individual associated with the participant 
who participated in, knew of, or had reason to know of the participant's 
conduct.
    (3) Conduct of one participant imputed to other participants in a 
joint venture. The fraudulent, criminal, or other seriously improper 
conduct of one participant in a joint venture, grant pursuant to a joint 
application, or similar arrangement may be imputed to other participants 
if the conduct occurred for or on behalf of the joint venture, grant 
pursuant to a joint application, or similar arrangement may be imputed 
to other participants if the conduct occurred for or on behalf of the 
joint venture, grant pursuant to a joint application, or similar 
arrangement or with the knowledge, approval, or acquiescence of these 
participants. Acceptance of the benefits derived from the conduct shall 
be evidence of such knowledge, approval, or acquiescence.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



                          Subpart D--Suspension



Sec. 25.400  General.

    (a) The suspending official may suspend a person for any of the 
causes in Sec. 25.405 using procedures established in Secs. 25.410 
through 25.413.
    (b) Suspension is a serious action to be imposed only when:
    (1) There exists adequate evidence of one or more of the causes set 
out in Sec. 25.405, and
    (2) Immediate action is necessary to protect the public interest.
    (c) In assessing the adequacy of the evidence, the agency should 
consider how much information is available, how credible it is given the 
circumstances, whether or not important allegations are corroborated, 
and what inferences can reasonably be drawn as a result. This assessment 
should include an examination of basic documents such as grants, 
cooperative agreements, loan authorizations, and contracts.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.405  Causes for suspension.

    (a) Suspension may be imposed in accordance with the provisions of 
Secs. 25.400 through 25.413 upon adequate evidence:
    (1) To suspect the commission of an offense listed in 
Sec. 25.305(a); or
    (2) That a cause for debarment under Sec. 25.305 may exist.
    (b) Indictment shall constitute adequate evidence for purposes of 
suspension actions.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.410  Procedures.

    (a) Investigation and referral. Information concerning the existence 
of a cause for suspension from any source shall be promptly reported, 
investigated, and referred, when appropriate, to the suspending official 
for consideration. After consideration, the suspending official may 
issue a notice of suspension.
    (b) Decisionmaking process. Military Departments and Defense 
Agencies shall process suspension actions as informally as practicable, 
consistent with principles of fundamental fairness, using the procedures 
in Secs. 25.411 through 25.413.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.411  Notice of suspension.

    When a respondent is suspended, notice shall immediately be given:
    (a) That suspension has been imposed;
    (b) That the suspension is based on an indictment, conviction, or 
other adequate evidence that the respondent has committed irregularities 
seriously reflecting on the propriety of further

[[Page 63]]

Federal Government dealings with the respondent;
    (c) Describing any such irregularities in terms sufficient to put 
the respondent on notice without disclosing the Federal Government's 
evidence;
    (d) Of the cause(s) relied upon under Sec. 25.405 for imposing 
suspension;
    (e) That the suspension is for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings;
    (f) Of the provisions of Secs. 25.411 through 25.413 and any other 
Military Departments and Defense Agencies procedures, if applicable, 
governing suspension decisionmaking; and
    (g) Of the effect of the suspension.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.412  Opportunity to contest suspension.

    (a) Submission in opposition. Within 30 days after receipt of the 
notice of suspension, the respondent may submit, in person, in writing, 
or through a representative, information and argument in opposition to 
the suspension.
    (b) Additional proceedings as to disputed material facts. (1) If the 
suspending official finds that the respondent's submission in opposition 
raises a genuine dispute over facts material to the suspension, 
respondent(s) shall be afforded an opportunity to appear with a 
representative, submit documentary evidence, present witnesses, and 
confront any witness the agency presents, unless:
    (i) The action is based on an indictment, conviction or civil 
judgment, or
    (ii) A determination is made, on the basis of Department of Justice 
advice, that the substantial interests of the Federal Government in 
pending or contemplated legal proceedings based on the same facts as the 
suspension would be prejudiced.
    (2) A transcribed record of any additional proceedings shall be 
prepared and made available at cost to the respondent, upon request, 
unless the respondent and the agency, by mutual agreement, waive the 
requirement for a transcript.



Sec. 25.413  Suspending official's decision.

    The suspending official may modify or terminate the suspension (for 
example, see Sec. 25.320(c) for reasons for reducing the period or scope 
of debarment) or may leave it in force. However, a decision to modify or 
terminate the suspension shall be without prejudice to the subsequent 
imposition of suspension by any other agency or debarment by any agency. 
The decision shall be rendered in accordance with the following 
provisions:
    (a) No additional proceedings necessary. In actions: based on an 
indictment, conviction, or civil judgment; in which there is no genuine 
dispute over material facts; or in which additional proceedings to 
determine disputed material facts have been denied on the basis of 
Department of Justice advice, the suspending official shall make a 
decision on the basis of all the information in the administrative 
record, including any submission made by the respondent. The decision 
shall be made within 45 days after receipt of any information and 
argument submitted by the respondent, unless the suspending official 
extends this period for good cause.
    (b) Additional proceedings necessary. (1) In actions in which 
additional proceedings are necessary to determine disputed material 
facts, written findings of fact shall be prepared. The suspending 
official shall base the decision on the facts as found, together with 
any information and argument submitted by the respondent and any other 
information in the administrative record.
    (2) The suspending official may refer matters involving disputed 
material facts to another official for findings of fact. The suspending 
official may reject any such findings, in whole or in part, only after 
specifically determining them to be arbitrary or capricious or clearly 
erroneous.
    (c) Notice of suspending official's decision. Prompt written notice 
of the suspending official's decision shall be sent to the respondent.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]

[[Page 64]]



Sec. 25.415  Period of suspension.

    (a) Suspension shall be for a temporary period pending the 
completion of an investigation or ensuing legal, debarment, or Program 
Fraud Civil Remedies Act proceedings, unless terminated sooner by the 
suspending official or as provided in paragraph (b) of this section.
    (b) If legal or administrative proceedings are not initiated within 
12 months after the date of the suspension notice, the suspension shall 
be terminated unless an Assistant Attorney General or United States 
Attorney requests its extension in writing, in which case it may be 
extended for an additional six months. In no event may a suspension 
extend beyond 18 months, unless such proceedings have been initiated 
within that period.
    (c) The suspending official shall notify the Department of Justice 
of an impending termination of a suspension, at least 30 days before the 
12-month period expires, to give that Department an opportunity to 
request an extension.



Sec. 25.420  Scope of suspension.

    The scope of a suspension is the same as the scope of a debarment 
(see Sec. 25.325), except that the procedures of Secs. 25.410 through 
25.413 shall be used in imposing a suspension.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



       Subpart E--Responsibilities of GSA, Agency and Participants



Sec. 25.500  GSA responsibilities.

    (a) In accordance with the OMB guidelines, GSA shall compile, 
maintain, and distribute a list of all persons who have been debarred, 
suspended, or voluntarily excluded by agencies under Executive Order 
12549 and these regulations, and those who have been determined to be 
ineligible.
    (b) At a minimum, this list shall indicate:
    (1) The names and addresses of all debarred, suspended, ineligible, 
and voluntarily excluded persons, in alphabetical order, with cross-
references when more than one name is involved in a single action;
    (2) The type of action;
    (3) The cause for the action;
    (4) The scope of the action;
    (5) Any termination date for each listing; and
    (6) The agency and name and telephone number of the agency point of 
contact for the action.



Sec. 25.505  Military Departments and Defense Agencies' responsibilities.

    (a) The agency shall provide GSA with current information concerning 
debarments, suspension, determinations of ineligibility, and voluntary 
exclusions it has taken. Until February 18, 1989, the agency shall also 
provide GSA and OMB with information concerning all transactions in 
which Military Departments and Defense Agencies has granted exceptions 
under Sec. 25.215 permitting participation by debarred, suspended, or 
voluntarily excluded persons.
    (b) Unless an alternative schedule is agreed to by GSA, the agency 
shall advise GSA of the information set forth in Sec. 25.500(b) and of 
the exceptions granted under Sec. 25.215 within five working days after 
taking such actions.
    (c) The agency shall direct inquiries concerning listed persons to 
the agency that took the action.
    (d) Agency officials shall check the Nonprocurement List before 
entering covered transactions to determine whether a participant in a 
primary transaction is debarred, suspended, ineligible, or voluntarily 
excluded (Tel. ).
    (e) Agency officials shall check the Nonprocurement List before 
approving principals or lower tier participants where agency approval of 
the principal or lower tier participant is required under the terms of 
the transaction, to determine whether such principals or participants 
are debarred, suspended, ineligible, or voluntarily excluded.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.510  Participants' responsibilities.

    (a) Certification by participants in primary covered transactions. 
Each participant shall submit the certification in

[[Page 65]]

appendix A to this part for it and its principals at the time the 
participant submits its proposal in connection with a primary covered 
transaction, except that States need only complete such certification as 
to their principals. Participants may decide the method and frequency by 
which they determine the eligibility of their principals. In addition, 
each participant may, but is not required to, check the Nonprocurement 
List for its principals (Tel. ). Adverse information on the 
certification will not necessarily result in denial of participation. 
However, the certification, and any additional information pertaining to 
the certification submitted by the participant, shall be considered in 
the administration of covered transactions.
    (b) Certification by participants in lower tier covered 
transactions. (1) Each participant shall require participants in lower 
tier covered transactions to include the certification in appendix B to 
this part for it and its principals in any proposal submitted in 
connection with such lower tier covered transactions.
    (2) A participant may rely upon the certification of a prospective 
participant in a lower tier covered transaction that it and its 
principals are not debarred, suspended, ineligible, or voluntarily 
excluded from the covered transaction by any Federal agency, unless it 
knows that the certification is erroneous. Participants may decide the 
method and frequency by which they determine the eligiblity of their 
principals. In addition, a participant may, but is not required to, 
check the Nonprocurement List for its principals and for participants 
(Tel. ).
    (c) Changed circumstances regarding certification. A participant 
shall provide immediate written notice to Military Departments and 
Defense Agencies if at any time the participant learns that its 
certification was erroneous when submitted or has become erroneous by 
reason of changed circumstances. Participants in lower tier covered 
transactions shall provide the same updated notice to the participant to 
which it submitted its proposals.



          Subpart F--Drug-Free Workplace Requirements (Grants)

    Source: 55 FR 21688, 21697, May 25, 1990, unless otherwise noted. 
Redesignated at 57 FR 6199, Feb. 21, 1992.



Sec. 25.600  Purpose.

    (a) The purpose of this subpart is to carry out the Drug-Free 
Workplace Act of 1988 by requiring that--
    (1) A grantee, other than an individual, shall certify to the agency 
that it will provide a drug-free workplace;
    (2) A grantee who is an individual shall certify to the agency that, 
as a condition of the grant, he or she will not engage in the unlawful 
manufacture, distribution, dispensing, possession or use of a controlled 
substance in conducting any activity with the grant.
    (b) Requirements implementing the Drug-Free Workplace Act of 1988 
for contractors with the agency are found at 48 CFR subparts 9.4, 23.5, 
and 52.2.



Sec. 25.605  Definitions.

    (a) Except as amended in this section, the definitions of 
Sec. 25.105 apply to this subpart.
    (b) For purposes of this subpart--
    (1) Controlled substance means a controlled substance in schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812), and as 
further defined by regulation at 21 CFR 1308.11 through 1308.15;
    (2) Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    (3) Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    (4) Drug-free workplace means a site for the performance of work 
done in connection with a specific grant at which employees of the 
grantee are prohibited from engaging in the unlawful manufacture, 
distribution, dispensing, possession, or use of a controlled substance;

[[Page 66]]

    (5) Employee means the employee of a grantee directly engaged in the 
performance of work under the grant, including:
    (i) All direct charge employees;
    (ii) All indirect charge employees, unless their impact or 
involvement is insignificant to the performance of the grant; and,
    (iii) Temporary personnel and consultants who are directly engaged 
in the performance of work under the grant and who are on the grantee's 
payroll.

This definition does not include workers not on the payroll of the 
grantee (e.g., volunteers, even if used to meet a matching requirement; 
consultants or independent contractors not on the payroll; or employees 
of subrecipients or subcontractors in covered workplaces);
    (6) Federal agency or agency means any United States executive 
department, military department, government corporation, government 
controlled corporation, any other establishment in the executive branch 
(including the Executive Office of the President), or any independent 
regulatory agency;
    (7) Grant means an award of financial assistance, including a 
cooperative agreement, in the form of money, or property in lieu of 
money, by a Federal agency directly to a grantee. The term grant 
includes block grant and entitlement grant programs, whether or not 
exempted from coverage under the grants management government-wide 
common rule on uniform administrative requirements for grants and 
cooperative agreements. The term does not include technical assistance 
that provides services instead of money, or other assistance in the form 
of loans, loan guarantees, interest subsidies, insurance, or direct 
appropriations; or any veterans' benefits to individuals, i.e., any 
benefit to veterans, their families, or survivors by virtue of the 
service of a veteran in the Armed Forces of the United States;
    (8) Grantee means a person who applies for or receives a grant 
directly from a Federal agency (except another Federal agency);
    (9) Individual means a natural person;
    (10) State means any of the States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency of a State, exclusive of 
institutions of higher education, hospitals, and units of local 
government. A State instrumentality will be considered part of the State 
government if it has a written determination from a State government 
that such State considers the instrumentality to be an agency of the 
State government.
[55 FR 21688 and 21697, May. 25, 1990. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.610  Coverage.

    (a) This subpart applies to any grantee of the agency.
    (b) This subpart applies to any grant, except where application of 
this subpart would be inconsistent with the international obligations of 
the United States or the laws or regulations of a foreign government. A 
determination of such inconsistency may be made only by the agency head 
or his/her designee.
    (1) Heads of Defense Agencies, Heads of DoD Field Activities, and 
their designees are authorized to make such determinations on behalf of 
the Secretary of Defense.
    (2) [Reserved]
    (c) The provisions of subparts A, B, C, D and E of this part apply 
to matters covered by this subpart, except where specifically modified 
by this subpart. In the event of any conflict between provisions of this 
subpart and other provisions of this part, the provisions of this 
subpart are deemed to control with respect to the implementation of 
drug-free workplace requirements concerning grants.
[53 FR 19190 and 19204, May 26, 1988. Redesignated and amended at 57 FR 
6199, Feb. 21, 1992; 60 FR 33053, June 26, 1995]

[[Page 67]]



Sec. 25.615  Grounds for suspension of payments, suspension or termination of grants, or suspension or debarment.

    A grantee shall be deemed in violation of the requirements of this 
subpart if the agency head or his or her official designee determines, 
in writing, that--
    (a) The grantee has made a false certification under Sec. 25.630;
    (b) With respect to a grantee other than an individual--
    (1) The grantee has violated the certification by failing to carry 
out the requirements of paragraphs (A)(a)-(g) and/or (B) of the 
certification (Alternate I to Appendix C) or
    (2) Such a number of employees of the grantee have been convicted of 
violations of criminal drug statutes for violations occurring in the 
workplace as to indicate that the grantee has failed to make a good 
faith effort to provide a drug-free workplace.
    (c) With respect to a grantee who is an individual--
    (1) The grantee has violated the certification by failing to carry 
out its requirements (Alternate II to Appendix C); or
    (2) The grantee is convicted of a criminal drug offense resulting 
from a violation occurring during the conduct of any grant activity.
[55 FR 21688 and 21697, May 25, 1990. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.616  Determinations of grantee violations.

    Heads of Defense Agencies, Heads of DoD Field Activities, and their 
designees are authorized to make determinations of grantee violations 
under Sec. 25.615.
[60 FR 33053, June 26, 1995]



Sec. 25.620  Effect of violation.

    (a) In the event of a violation of this subpart as provided in 
Sec. 25.615, and in accordance with applicable law, the grantee shall be 
subject to one or more of the following actions:
    (1) Suspension of payments under the grant;
    (2) Suspension or termination of the grant; and
    (3) Suspension or debarment of the grantee under the provisions of 
this part.
    (b) Upon issuance of any final decision under this part requiring 
debarment of a grantee, the debarred grantee shall be ineligible for 
award of any grant from any Federal agency for a period specified in the 
decision, not to exceed five years (see Sec. 25.320(a)(2) of this part).
[55 FR 21688 and 21697, May 25, 1990. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 25.625  Exception provision.

    The agency head may waive with respect to a particular grant, in 
writing, a suspension of payments under a grant, suspension or 
termination of a grant, or suspension or debarment of a grantee if the 
agency head determines that such a waiver would be in the public 
interest. This exception authority cannot be delegated to any other 
official.



Sec. 25.630  Certification requirements and procedures.

    (a)(1) As a prior condition of being awarded a grant, each grantee 
shall make the appropriate certification to the Federal agency providing 
the grant, as provided in Appendix C to this part.
    (2) Grantees are not required to make a certification in order to 
continue receiving funds under a grant awarded before March 18, 1989, or 
under a no-cost time extension of such a grant. However, the grantee 
shall make a one-time drug-free workplace certification for a non-
automatic continuation of such a grant made on or after March 18, 1989.
    (b) Except as provided in this section, all grantees shall make the 
required certification for each grant. For mandatory formula grants and 
entitlements that have no application process, grantees shall submit a 
one-time certification in order to continue receiving awards.
    (c) A grantee that is a State may elect to make one certification in 
each Federal fiscal year. States that previously submitted an annual 
certification are not required to make a certification for Fiscal Year 
1990 until

[[Page 68]]

June 30, 1990. Except as provided in paragraph (d) of this section, this 
certification shall cover all grants to all State agencies from any 
Federal agency. The State shall retain the original of this statewide 
certification in its Governor's office and, prior to grant award, shall 
ensure that a copy is submitted individually with respect to each grant, 
unless the Federal agency has designated a central location for 
submission.
    (d)(1) The Governor of a State may exclude certain State agencies 
from the statewide certification and authorize these agencies to submit 
their own certifications to Federal agencies. The statewide 
certification shall name any State agencies so excluded.
    (2) A State agency to which the statewide certification does not 
apply, or a State agency in a State that does not have a statewide 
certification, may elect to make one certification in each Federal 
fiscal year. State agencies that previously submitted a State agency 
certification are not required to make a certification for Fiscal Year 
1990 until June 30, 1990. The State agency shall retain the original of 
this State agency-wide certification in its central office and, prior to 
grant award, shall ensure that a copy is submitted individually with 
respect to each grant, unless the Federal agency designates a central 
location for submission.
    (3) When the work of a grant is done by more than one State agency, 
the certification of the State agency directly receiving the grant shall 
be deemed to certify compliance for all workplaces, including those 
located in other State agencies.
    (e)(1) For a grant of less than 30 days performance duration, 
grantees shall have this policy statement and program in place as soon 
as possible, but in any case by a date prior to the date on which 
performance is expected to be completed.
    (2) For a grant of 30 days or more performance duration, grantees 
shall have this policy statement and program in place within 30 days 
after award.
    (3) Where extraordinary circumstances warrant for a specific grant, 
the grant officer may determine a different date on which the policy 
statement and program shall be in place.



Sec. 25.635  Reporting of and employee sanctions for convictions of criminal drug offenses.

    (a) When a grantee other than an individual is notified that an 
employee has been convicted for a violation of a criminal drug statute 
occurring in the workplace, it shall take the following actions:
    (1) Within 10 calendar days of receiving notice of the conviction, 
the grantee shall provide written notice, including the convicted 
employee's position title, to every grant officer, or other designee on 
whose grant activity the convicted employee was working, unless a 
Federal agency has designated a central point for the receipt of such 
notifications. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.
    (2) Within 30 calendar days of receiving notice of the conviction, 
the grantee shall do the following with respect to the employee who was 
convicted.
    (i) Take appropriate personnel action against the employee, up to 
and including termination, consistent with requirements of the 
Rehabilitation Act of 1973, as amended; or
    (ii) Require the employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency.
    (b) A grantee who is an individual who is convicted for a violation 
of a criminal drug statute occurring during the conduct of any grant 
activity shall report the conviction, in writing, within 10 calendar 
days, to his or her Federal agency grant officer, or other designee, 
unless the Federal agency has designated a central point for the receipt 
of such notices. Notification shall include the identification number(s) 
for each of the Federal agency's affected grants.

(Approved by the Office of Management and Budget under control number 
0991-0002)


[[Page 69]]



 Appendix A to Part 25--Certification Regarding Debarment, Suspension, 
     and Other Responsibility Matters--Primary Covered Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective primary 
participant is providing the certification set out below.
    2. The inability of a person to provide the certification required 
below will not necessarily result in denial of participation in this 
covered transaction. The prospective participant shall submit an 
explanation of why it cannot provide the certification set out below. 
The certification or explanation will be considered in connection with 
the department or agency's determination whether to enter into this 
transaction. However, failure of the prospective primary participant to 
furnish a certification or an explanation shall disqualify such person 
from participation in this transaction.
    3. The certification in this clause is a material representation of 
fact upon which reliance was placed when the department or agency 
determined to enter into this transaction. If it is later determined 
that the prospective primary participant knowingly rendered an erroneous 
certification, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.
    4. The prospective primary participant shall provide immediate 
written notice to the department or agency to which this proposal is 
submitted if at any time the prospective primary participant learns that 
its certification was erroneous when submitted or has become erroneous 
by reason of changed circumstances.
    5. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meanings set out in the Definitions and Coverage 
sections of the rules implementing Executive Order 12549. You may 
contact the department or agency to which this proposal is being 
submitted for assistance in obtaining a copy of those regulations.
    6. The prospective primary participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency entering into this transaction.
    7. The prospective primary participant further agrees by submitting 
this proposal that it will include the clause titled ``Certification 
Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-
Lower Tier Covered Transaction,'' provided by the department or agency 
entering into this covered transaction, without modification, in all 
lower tier covered transactions and in all solicitations for lower tier 
covered transactions.
    8. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from the covered transaction, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    9. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    10. Except for transactions authorized under paragraph 6 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency may terminate this transaction for 
cause or default.

Certification Regarding Debarment, Suspension, and Other Responsibility 
                  Matters--Primary Covered Transactions

    (1) The prospective primary participant certifies to the best of its 
knowledge and belief, that it and its principals:
    (a) Are not presently debarred, suspended, proposed for debarment, 
declared ineligible, or voluntarily excluded by any Federal department 
or agency;
    (b) Have not within a three-year period preceding this proposal been 
convicted of or had a civil judgment rendered against them for 
commission of fraud or a criminal offense in connection with obtaining, 
attempting to obtain, or performing a public (Federal, State or local) 
transaction or contract under a public transaction; violation of Federal 
or State antitrust statutes or commission of

[[Page 70]]

embezzlement, theft, forgery, bribery, falsification or destruction of 
records, making false statements, or receiving stolen property;
    (c) Are not presently indicted for or otherwise criminally or 
civilly charged by a governmental entity (Federal, State or local) with 
commission of any of the offenses enumerated in paragraph (1)(b) of this 
certification; and
    (d) Have not within a three-year period preceding this application/
proposal had one or more public transactions (Federal, State or local) 
terminated for cause or default.
    (2) Where the prospective primary participant is unable to certify 
to any of the statements in this certification, such prospective 
participant shall attach an explanation to this proposal.
[60 FR 33042, June 26, 1995]

 Appendix B to Part 25--Certification Regarding Debarment, Suspension, 
 Ineligibility and Voluntary Exclusion--Lower Tier Covered Transactions

                     Instructions for Certification

    1. By signing and submitting this proposal, the prospective lower 
tier participant is providing the certification set out below.
    2. The certification in this clause is a material representation of 
fact upon which reliance was placed when this transaction was entered 
into. If it is later determined that the prospective lower tier 
participant knowingly rendered an erroneous certification, in addition 
to other remedies available to the Federal Government the department or 
agency with which this transaction originated may pursue available 
remedies, including suspension and/or debarment.
    3. The prospective lower tier participant shall provide immediate 
written notice to the person to which this proposal is submitted if at 
any time the prospective lower tier participant learns that its 
certification was erroneous when submitted or had become erroneous by 
reason of changed circumstances.
    4. The terms covered transaction, debarred, suspended, ineligible, 
lower tier covered transaction, participant, person, primary covered 
transaction, principal, proposal, and voluntarily excluded, as used in 
this clause, have the meaning set out in the Definitions and Coverage 
sections of rules implementing Executive Order 12549. You may contact 
the person to which this proposal is submitted for assistance in 
obtaining a copy of those regulations.
    5. The prospective lower tier participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered into, 
it shall not knowingly enter into any lower tier covered transaction 
with a person who is proposed for debarment under 48 CFR part 9, subpart 
9.4, debarred, suspended, declared ineligible, or voluntarily excluded 
from participation in this covered transaction, unless authorized by the 
department or agency with which this transaction originated.
    6. The prospective lower tier participant further agrees by 
submitting this proposal that it will include this clause titled 
``Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transaction,'' without 
modification, in all lower tier covered transactions and in all 
solicitations for lower tier covered transactions.
    7. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 9, 
subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded 
from covered transactions, unless it knows that the certification is 
erroneous. A participant may decide the method and frequency by which it 
determines the eligibility of its principals. Each participant may, but 
is not required to, check the List of Parties Excluded from Federal 
Procurement and Nonprocurement Programs.
    8. Nothing contained in the foregoing shall be construed to require 
establishment of a system of records in order to render in good faith 
the certification required by this clause. The knowledge and information 
of a participant is not required to exceed that which is normally 
possessed by a prudent person in the ordinary course of business 
dealings.
    9. Except for transactions authorized under paragraph 5 of these 
instructions, if a participant in a covered transaction knowingly enters 
into a lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, 
ineligible, or voluntarily excluded from participation in this 
transaction, in addition to other remedies available to the Federal 
Government, the department or agency with which this transaction 
originated may pursue available remedies, including suspension and/or 
debarment.

    Certification Regarding Debarment, Suspension, Ineligibility an 
          Voluntary Exclusion--Lower Tier Covered Transactions

    (1) The prospective lower tier participant certifies, by submission 
of this proposal, that neither it nor its principals is presently 
debarred, suspended, proposed for debarment, declared ineligible, or 
voluntarily excluded from participation in this transaction by any 
Federal department or agency.
    (2) Where the prospective lower tier participant is unable to 
certify to any of the statements in this certification, such prospective

[[Page 71]]

participant shall attach an explanation to this proposal.
[60 FR 33042, June 26, 1995]

   Appendix C to Part 25--Certification Regarding Drug-Free Workplace 
                              Requirements

                     Instructions for Certification

    1. By signing and/or submitting this application or grant agreement, 
the grantee is providing the certification set out below.
    2. The certification set out below is a material representation of 
fact upon which reliance is placed when the agency awards the grant. If 
it is later determined that the grantee knowingly rendered a false 
certification, or otherwise violates the requirements of the Drug-Free 
Workplace Act, the agency, in addition to any other remedies available 
to the Federal Government, may take action authorized under the Drug-
Free Workplace Act.
    3. For grantees other than individuals, Alternate I applies.
    4. For grantees who are individuals, Alternate II applies.
    5. Workplaces under grants, for grantees other than individuals, 
need not be identified on the certification. If known, they may be 
identified in the grant application. If the grantee does not identify 
the workplaces at the time of application, or upon award, if there is no 
application, the grantee must keep the identity of the workplace(s) on 
file in its office and make the information available for Federal 
inspection. Failure to identify all known workplaces constitutes a 
violation of the grantee's drug-free workplace requirements.
    6. Workplace identifications must include the actual address of 
buildings (or parts of buildings) or other sites where work under the 
grant takes place. Categorical descriptions may be used (e.g., all 
vehicles of a mass transit authority or State highway department while 
in operation, State employees in each local unemployment office, 
performers in concert halls or radio studios).
    7. If the workplace identified to the agency changes during the 
performance of the grant, the grantee shall inform the agency of the 
change(s), if it previously identified the workplaces in question (see 
paragraph five).
    8. Definitions of terms in the Nonprocurement Suspension and 
Debarment common rule and Drug-Free Workplace common rule apply to this 
certification. Grantees' attention is called, in particular, to the 
following definitions from these rules:
    Controlled substance means a controlled substance in Schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812) and as 
further defined by regulation (21 CFR 1308.11 through 1308.15);
    Conviction means a finding of guilt (including a plea of nolo 
contendere) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the Federal 
or State criminal drug statutes;
    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance;
    Employee means the employee of a grantee directly engaged in the 
performance of work under a grant, including: (i) All direct charge 
employees; (ii) All indirect charge employees unless their impact or 
involvement is insignificant to the performance of the grant; and, (iii) 
Temporary personnel and consultants who are directly engaged in the 
performance of work under the grant and who are on the grantee's 
payroll. This definition does not include workers not on the payroll of 
the grantee (e.g., volunteers, even if used to meet a matching 
requirement; consultants or independent contractors not on the grantee's 
payroll; or employees of subrecipients or subcontractors in covered 
workplaces).

        Certification Regarding Drug-Free Workplace Requirements

             Alternate I. (Grantees Other Than Individuals)

    A. The grantee certifies that it will or will continue to provide a 
drug-free workplace by:
    (a) Publishing a statement notifying employees that the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance is prohibited in the grantee's workplace and 
specifying the actions that will be taken against employees for 
violation of such prohibition;
    (b) Establishing an ongoing drug-free awareness program to inform 
employees about--
    (1) The dangers of drug abuse in the workplace;
    (2) The grantee's policy of maintaining a drug-free workplace;
    (3) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (4) The penalties that may be imposed upon employees for drug abuse 
violations occurring in the workplace;
    (c) Making it a requirement that each employee to be engaged in the 
performance of the grant be given a copy of the statement required by 
paragraph (a);
    (d) Notifying the employee in the statement required by paragraph 
(a) that, as a condition of employment under the grant, the employee 
will--
    (1) Abide by the terms of the statement; and

[[Page 72]]

    (2) Notify the employer in writing of his or her conviction for a 
violation of a criminal drug statute occurring in the workplace no later 
than five calendar days after such conviction;
    (e) Notifying the agency in writing, within ten calendar days after 
receiving notice under paragraph (d)(2) from an employee or otherwise 
receiving actual notice of such conviction. Employers of convicted 
employees must provide notice, including position title, to every grant 
officer or other designee on whose grant activity the convicted employee 
was working, unless the Federal agency has designated a central point 
for the receipt of such notices. Notice shall include the identification 
number(s) of each affected grant;
    (f) Taking one of the following actions, within 30 calendar days of 
receiving notice under paragraph (d)(2), with respect to any employee 
who is so convicted--
    (1) Taking appropriate personnel action against such an employee, up 
to and including termination, consistent with the requirements of the 
Rehabilitation Act of 1973, as amended; or
    (2) Requiring such employee to participate satisfactorily in a drug 
abuse assistance or rehabilitation program approved for such purposes by 
a Federal, State, or local health, law enforcement, or other appropriate 
agency;
    (g) Making a good faith effort to continue to maintain a drug-free 
workplace through implementation of paragraphs (a), (b), (c), (d), (e) 
and (f).
    B. The grantee may insert in the space provided below the site(s) 
for the performance of work done in connection with the specific grant:

Place of Performance (Street address, city, county, State, zip code)
 _______________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Check {time}  if there are workplaces on file that are not identified 
here.

              Alternate II. (Grantees Who Are Individuals)

    (a) The grantee certifies that, as a condition of the grant, he or 
she will not engage in the unlawful manufacture, distribution, 
dispensing, possession, or use of a controlled substance in conducting 
any activity with the grant;
    (b) If convicted of a criminal drug offense resulting from a 
violation occurring during the conduct of any grant activity, he or she 
will report the conviction, in writing, within 10 calendar days of the 
conviction, to every grant officer or other designee, unless the Federal 
agency designates a central point for the receipt of such notices. When 
notice is made to such a central point, it shall include the 
identification number(s) of each affected grant.
[55 FR 21690, 21697, May 25, 1990. Redesignated at 57 FR 6200, Feb. 21, 
1992]



PART 28--NEW RESTRICTIONS ON LOBBYING--Table of Contents




                           Subpart A--General

Sec.
28.100  Conditions on use of funds.
28.105  Definitions.
28.110  Certification and disclosure.

                 Subpart B--Activities by Own Employees

28.200  Agency and legislative liaison.
28.205  Professional and technical services.
28.210  Reporting.

            Subpart C--Activities by Other Than Own Employees

28.300  Professional and technical services.

                  Subpart D--Penalties and Enforcement

28.400  Penalties.
28.405  Penalty procedures.
28.410  Enforcement.

                          Subpart E--Exemptions

28.500  Secretary of Defense.

                        Subpart F--Agency Reports

28.600  Semi-annual compilation.
28.605  Inspector General report.

Appendix A to Part 28--Certification Regarding Lobbying
Appendix B to Part 28--Disclosure Form to Report Lobbying

    Authority: Section 319, Public Law 102-121 (31 U.S.C. 1352); 5 
U.S.C. section 301; 10 U.S.C. 113.

    Source: 55 FR 6737 and 6752, Feb. 26, 1990. Redesignated at 57 FR 
6199, Feb. 21, 1992.

    Cross reference: See also Office of Management and Budget notice 
published at 54 FR 52306, December 20, 1989.



                           Subpart A--General



Sec. 28.100  Conditions on use of funds.

    (a) No appropriated funds may be expended by the recipient of a 
Federal contract, grant, loan, or cooperative ageement to pay any person 
for influencing or attempting to influence an officer or employee of any 
agency, a

[[Page 73]]

Member of Congress, an officer or employee of Congress, or an employee 
of a Member of Congress in connection with any of the following covered 
Federal actions: the awarding of any Federal contract, the making of any 
Federal grant, the making of any Federal loan, the entering into of any 
cooperative agreement, and the extension, continuation, renewal, 
amendment, or modification of any Federal contract, grant, loan, or 
cooperative agreement.
    (b) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or cooperative agreement shall file with that 
agency a certification, set forth in Appendix A, that the person has not 
made, and will not make, any payment prohibited by paragraph (a) of this 
section.
    (c) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or a cooperative agreement shall file with that 
agency a disclosure form, set forth in Appendix B, if such person has 
made or has agreed to make any payment using nonappropriated funds (to 
include profits from any covered Federal action), which would be 
prohibited under paragraph (a) of this section if paid for with 
appropriated funds.
    (d) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a statement, set forth in appendix A, whether that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.
    (e) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a disclosure form, set forth in Appendix B, if that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.



Sec. 28.105  Definitions.

    For purposes of this part:
    (a) Agency, as defined in 5 U.S.C. 552(f), includes Federal 
executive departments and agencies as well as independent regulatory 
commissions and Government corporations, as defined in 31 U.S.C. 
9101(1).
    (b) Covered Federal action means any of the following Federal 
actions:
    (1) The awarding of any Federal contract;
    (2) The making of any Federal grant;
    (3) The making of any Federal loan;
    (4) The entering into of any cooperative agreement; and,
    (5) The extension, continuation, renewal, amendment, or modification 
of any Federal contract, grant, loan, or cooperative agreement.

Covered Federal action does not include receiving from an agency a 
commitment providing for the United States to insure or guarantee a 
loan. Loan guarantees and loan insurance are addressed independently 
within this part.
    (c) Federal contract means an acquisition contract awarded by an 
agency, including those subject to the Federal Acquisition Regulation 
(FAR), and any other acquisition contract for real or personal property 
or services not subject to the FAR.
    (d) Federal cooperative agreement means a cooperative agreement 
entered into by an agency.
    (e) Federal grant means an award of financial assistance in the form 
of money, or property in lieu of money, by the Federal Government or a 
direct appropriation made by law to any person. The term does not 
include technical assistance which provides services instead of money, 
or other assistance in the form of revenue sharing, loans, loan 
guarantees, loan insurance, interest subsidies, insurance, or direct 
United States cash assistance to an individual.
    (f) Federal loan means a loan made by an agency. The term does not 
include loan guarantee or loan insurance.
    (g) Indian tribe and tribal organization have the meaning provided 
in section 4 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450B). Alaskan Natives are included

[[Page 74]]

under the definitions of Indian tribes in that Act.
    (h) Influencing or attempting to influence means making, with the 
intent to influence, any communication to or appearance before an 
officer or employee or any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any covered Federal action.
    (i) Loan guarantee and loan insurance means an agency's guarantee or 
insurance of a loan made by a person.
    (j) Local government means a unit of government in a State and, if 
chartered, established, or otherwise recognized by a State for the 
performance of a governmental duty, including a local public authority, 
a special district, an intrastate district, a council of governments, a 
sponsor group representative organization, and any other instrumentality 
of a local government.
    (k) Officer or employee of an agency includes the following 
individuals who are employed by an agency:
    (1) An individual who is appointed to a position in the Government 
under title 5, U.S. Code, including a position under a temporary 
appointment;
    (2) A member of the uniformed services as defined in section 101(3), 
title 37, U.S. Code;
    (3) A special Government employee as defined in section 202, title 
18, U.S. Code; and,
    (4) An individual who is a member of a Federal advisory committee, 
as defined by the Federal Advisory Committee Act, title 5, U.S. Code 
appendix 2.
    (l) Person means an individual, corporation, company, association, 
authority, firm, partnership, society, State, and local government, 
regardless of whether such entity is operated for profit or not for 
profit. This term excludes an Indian tribe, tribal organization, or any 
other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (m) Reasonable compensation means, with respect to a regularly 
employed officer or employee of any person, compensation that is 
consistent with the normal compensation for such officer or employee for 
work that is not furnished to, not funded by, or not furnished in 
cooperation with the Federal Government.
    (n) Reasonable payment means, with respect to perfessional and other 
technical services, a payment in an amount that is consistent with the 
amount normally paid for such services in the private sector.
    (o) Recipient includes all contractors, subcontractors at any tier, 
and subgrantees at any tier of the recipient of funds received in 
connection with a Federal contract, grant, loan, or cooperative 
agreement. The term excludes an Indian tribe, tribal organization, or 
any other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (p) Regularly employed means, with respect to an officer or employee 
of a person requesting or receiving a Federal contract, grant, loan, or 
cooperative agreement or a commitment providing for the United States to 
insure or guarantee a loan, an officer or employee who is employed by 
such person for at least 130 working days within one year immediately 
preceding the date of the submission that initiates agency consideration 
of such person for receipt of such contract, grant, loan, cooperative 
agreement, loan insurance commitment, or loan guarantee commitment. An 
officer or employee who is employed by such person for less than 130 
working days within one year immediately preceding the date of the 
submission that initiates agency consideration of such person shall be 
considered to be regularly employed as soon as he or she is employed by 
such person for 130 working days.
    (q) State means a State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, a territory or possession of 
the United States, an agency or instrumentality of a State, and a multi-
State, regional, or interstate entity having governmental duties and 
powers.



Sec. 28.110  Certification and disclosure.

    (a) Each person shall file a certification, and a disclosure form, 
if required, with each submission that initiates agency consideration of 
such person for:

[[Page 75]]

    (1) Award of a Federal contract, grant, or cooperative agreement 
exceeding $100,000; or
    (2) An award of a Federal loan or a commitment providing for the 
United States to insure or guarantee a loan exceeding $150,000.
    (b) Each person shall file a certification, and a disclosure form, 
if required, upon receipt by such person of:
    (1) A Federal contract, grant, or cooperative agreement exceeding 
$100,000; or
    (2) A Federal loan or a commitment providing for the United States 
to insure or guarantee a loan exceeding $150,000,

Unless such person previously filed a certification, and a disclosure 
form, if required, under paragraph (a) of this section.
    (c) Each person shall file a disclosure form at the end of each 
calendar quarter in which there occurs any event that requires 
disclosure or that materially affects the accuracy of the information 
contained in any disclosure form previously filed by such person under 
paragraphs (a) or (b) of this section. An event that materially affects 
the accuracy of the information reported includes:
    (1) A cumulative increase of $25,000 or more in the amount paid or 
expected to be paid for influencing or attempting to influence a covered 
Federal action; or
    (2) A change in the person(s) or individual(s) influencing or 
attempting to influence a covered Federal action; or,
    (3) A change in the officer(s), employee(s), or Member(s) contacted 
to influence or attempt to influence a covered Federal action.
    (d) Any person who requests or receives from a person referred to in 
paragraphs (a) or (b) of this section:
    (1) A subcontract exceeding $100,000 at any tier under a Federal 
contract;
    (2) A subgrant, contract, or subcontract exceeding $100,000 at any 
tier under a Federal grant;
    (3) A contract or subcontract exceeding $100,000 at any tier under a 
Federal loan exceeding $150,000; or,
    (4) A contract or subcontract exceeding $100,000 at any tier under a 
Federal cooperative agreement,


Shall file a certification, and a disclosure form, if required, to the 
next tier above.
    (e) All disclosure forms, but not certifications, shall be forwarded 
from tier to tier until received by the person referred to in paragraphs 
(a) or (b) of this section. That person shall forward all disclosure 
forms to the agency.
    (f) Any certification or disclosure form filed under paragraph (e) 
of this section shall be treated as a material representation of fact 
upon which all receiving tiers shall rely. All liability arising from an 
erroneous representation shall be borne solely by the tier filing that 
representation and shall not be shared by any tier to which the 
erroneous representation is forwarded. Submitting an erroneous 
certification or disclosure constitutes a failure to file the required 
certification or disclosure, respectively. If a person fails to file a 
required certification or disclosure, the United States may pursue all 
available remedies, including those authorized by section 1352, title 
31, U.S. Code.
    (g) For awards and commitments in process prior to December 23, 
1989, but not made before that date, certifications shall be required at 
award or commitment, covering activities occurring between December 23, 
1989, and the date of award or commitment. However, for awards and 
commitments in process prior to the December 23, 1989 effective date of 
these provisions, but not made before December 23, 1989, disclosure 
forms shall not be required at time of award or commitment but shall be 
filed within 30 days.
    (h) No reporting is required for an activity paid for with 
appropriated funds if that activity is allowable under either subpart B 
or C.



                 Subpart B--Activities by Own Employees



Sec. 28.200  Agency and legislative liaison.

    (a) The prohibition on the use of appropriated funds, in Sec. 28.100 
(a), does not apply in the case of a payment of reasonable compensation 
made to an officer or employee of a person requesting or receiving a 
Federal contract, grant, loan, or cooperative agreement

[[Page 76]]

if the payment is for agency and legislative liaison activities not 
directly related to a covered Federal action.
    (b) For purposes of paragraph (a) of this section, providing any 
information specifically requested by an agency or Congress is allowable 
at any time.
    (c) For purposes of paragraph (a) of this section, the following 
agency and legislative liaison activities are allowable at any time only 
where they are not related to a specific solicitation for any covered 
Federal action:
    (1) Discussing with an agency (including individual demonstrations) 
the qualities and characteristics of the person's products or services, 
conditions or terms of sale, and service capabilities; and,
    (2) Technical discussions and other activities regarding the 
application or adaptation of the person's products or services for an 
agency's use.
    (d) For purposes of paragraph (a) of this section, the following 
agencies and legislative liaison activities are allowable only where 
they are prior to formal solicitation of any covered Federal action:
    (1) Providing any information not specifically requested but 
necessary for an agency to make an informed decision about initiation of 
a covered Federal action;
    (2) Technical discussions regarding the preparation of an 
unsolicited proposal prior to its official submission; and,
    (3) Capability presentations by persons seeking awards from an 
agency pursuant to the provisions of the Small Business Act, as amended 
by Public Law 95-507 and other subsequent amendments.
    (e) Only those activities expressly authorized by this section are 
allowable under this section.
[55 FR 6737 and 6752, Feb. 26, 1990. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 28.205  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec. 28.100 
(a), does not apply in the case of a payment of reasonable compensation 
made to an officer or employee of a person requesting or receiving a 
Federal contract, grant, loan, or cooperative agreement or an extension, 
continuation, renewal, amendment, or modification of a Federal contract, 
grant, loan, or cooperative agreement if payment is for professional or 
technical services rendered directly in the preparation, submission, or 
negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting of a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.

[[Page 77]]

    (c) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (d) Only those services expressly authorized by this section are 
allowable under this section.
[55 FR 6737 and 6752, Feb. 26, 1990. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 28.210  Reporting.

    No reporting is required with respect to payments of reasonable 
compensation made to regularly employed officers or employees of a 
person.



            Subpart C--Activities by Other Than Own Employees



Sec. 28.300  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec. 28.100 
(a), does not apply in the case of any reasonable payment to a person, 
other than an officer or employee of a person requesting or receiving a 
covered Federal action, if the payment is for professional or technical 
services rendered directly in the preparation, submission, or 
negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) The reporting requirments in Sec. 28.110 (a) and (b) regarding 
filing a disclosure form by each person, if required, shall not apply 
with respect to professional or technical services rendered directly in 
the preparation, submission, or negotiation of any commitment providing 
for the United States to insure or guarantee a loan.
    (c) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting of a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.
    (d) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (e) Persons other than officers or employees of a person requesting 
or receiving a covered Federal action include consultants and trade 
associations.
    (f) Only those services expressly authorized by this section are 
allowable under this section.
[55 FR 6737 and 6752, Feb. 26, 1990. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]

[[Page 78]]



                  Subpart D--Penalties and Enforcement



Sec. 28.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
Appendix B) to be filed or amended if required herein, shall be subject 
to a civil penalty of not less than $10,000 and not more than $100,000 
for each such failure.
    (c) A filing or amended filing on or after the date on which an 
administrative action for the imposition of a civil penalty is commenced 
does not prevent the imposition of such civil penalty for a failure 
occurring before that date. An administrative action is commenced with 
respect to a failure when an investigating official determines in 
writing to commence an investigation of an allegation of such failure.
    (d) In determining whether to impose a civil penalty, and the amount 
of any such penalty, by reason of a violation by any person, the agency 
shall consider the nature, circumstances, extent, and gravity of the 
violation, the effect on the ability of such person to continue in 
business, any prior violations by such person, the degree of culpability 
of such person, the ability of the person to pay the penalty, and such 
other matters as may be appropriate.
    (e) First offenders under paragraphs (a) or (b) of this section 
shall be subject to a civil penalty of $10,000, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $10,000 and $100,000, as 
determined by the agency head or his or her designee.
    (f) An imposition of a civil penalty under this section does not 
prevent the United States from seeking any other remedy that may apply 
to the same conduct that is the basis for the imposition of such civil 
penalty.



Sec. 28.405  Penalty procedures.

    Agencies shall impose and collect civil penalties pursuant to the 
provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C. 
sections 3803 (except subsection (c)), 3804, 3805, 3806, 3807, 3808, and 
3812, insofar as these provisions are not inconsistent with the 
requirements herein.



Sec. 28.410  Enforcement.

    The head of each agency shall take such actions as are necessary to 
ensure that the provisions herein are vigorously implemented and 
enforced in that agency.



                          Subpart E--Exemptions



Sec. 28.500  Secretary of Defense.

    (a) Exemption authority. The Secretary of Defense may exempt, on a 
case-by-case basis, a covered Federal action from the prohibition 
whenever the Secretary determines, in writing, that such an exemption is 
in the national interest. The Secretary shall transmit a copy of each 
such written exemption to Congress immediately after making such a 
determination.
    (b) Policy. It is the policy of the Department of Defense that 
exemptions under paragraph (a) of this section shall be requested only 
rarely and in exceptional circumstances.
    (c) Procedures. Each DoD Component that awards or administers 
Federal grants, Federal cooperative agreements, or Federal loans subject 
to this part shall establish procedures whereby:
    (1) A grants officer wishing to request an exemption for a grant, 
cooperative agreement, or loan shall transmit such request through 
appropriate channels to: Director for Research, ODDR&E(R), 3080 Defense 
Pentagon, Washington, DC. 20301-3080.
    (2) Each such request shall explain why an exemption is in the 
national interest, a justification that must be transmitted to Congress 
for each exemption that is approved.
[63 FR 12188, Mar. 12, 1998]



                        Subpart F--Agency Reports



Sec. 28.600  Semi-annual compilation.

    (a) The head of each agency shall collect and compile the disclosure 
reports (see appendix B) and, on May 31 and November 30 of each year, 
submit to

[[Page 79]]

the Secretary of the Senate and the Clerk of the House of 
Representatives a report containing a compilation of the information 
contained in the disclosure reports received during the six-month period 
ending on March 31 or September 30, respectively, of that year.
    (b) The report, including the compilation, shall be available for 
public inspection 30 days after receipt of the report by the Secretary 
and the Clerk.
    (c) Information that involves intelligence matters shall be reported 
only to the Select Committee on Intelligence of the Senate, the 
Permanent Select Committee on Intelligence of the House of 
Representatives, and the Committees on Appropriations of the Senate and 
the House of Representatives in accordance with procedures agreed to by 
such committees. Such information shall not be available for public 
inspection.
    (d) Information that is classified under Executive Order 12356 or 
any successor order shall be reported only to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives or the Committees on Armed Services of the 
Senate and the House of Representatives (whichever such committees have 
jurisdiction of matters involving such information) and to the 
Committees on Appropriations of the Senate and the House of 
Representatives in accordance with procedures agreed to by such 
committees. Such information shall not be available for public 
inspection.
    (e) The first semi-annual compilation shall be submitted on May 31, 
1990, and shall contain a compilation of the disclosure reports received 
from December 23, 1989 to March 31, 1990.
    (f) Major agencies, designated by the Office of Management and 
Budget (OMB), are required to provide machine-readable compilations to 
the Secretary of the Senate and the Clerk of the House of 
Representatives no later than with the compilations due on May 31, 1991. 
OMB shall provide detailed specifications in a memorandum to these 
agencies.
    (g) Non-major agencies are requested to provide machine-readable 
compilations to the Secretary of the Senate and the Clerk of the House 
of Representatives.
    (h) Agencies shall keep the originals of all disclosure reports in 
the official files of the agency.



Sec. 28.605  Inspector General report.

    (a) The Inspector General, or other official as specified in 
paragraph (b) of this section, of each agency shall prepare and submit 
to Congress each year, commencing with submission of the President's 
Budget in 1991, an evaluation of the compliance of that agency with, and 
the effectiveness of, the requirements herein. The evaluation may 
include any recommended changes that may be necessary to strengthen or 
improve the requirements.
    (b) In the case of an agency that does not have an Inspector 
General, the agency official comparable to an Inspector General shall 
prepare and submit the annual report, or, if there is no such comparable 
official, the head of the agency shall prepare and submit the annual 
report.
    (c) The annual report shall be submitted at the same time the agency 
submits its annual budget justifications to Congress.
    (d) The annual report shall include the following: All alleged 
violations relating to the agency's covered Federal actions during the 
year covered by the report, the actions taken by the head of the agency 
in the year covered by the report with respect to those alleged 
violations and alleged violations in previous years, and the amounts of 
civil penalties imposed by the agency in the year covered by the report.

         Appendix A to Part 28--Certification Regarding Lobbying

 Certification for Contracts, Grants, Loans, and Cooperative Agreements

    The undersigned certifies, to the best of his or her knowledge and 
belief, that:
    (1) No Federal appropriated funds have been paid or will be paid, by 
or on behalf of the undersigned, to any person for influencing or 
attempting to influence an officer or employee of an agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the

[[Page 80]]

extension, continuation, renewal, amendment, or modification of any 
Federal contract, grant, loan, or cooperative agreement.
    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
influence an officer or employee of any agency, a Member of Congress, an 
officer or employee of Congress, or an employee of a Member of Congress 
in connection with this Federal contract, grant, loan, or cooperative 
agreement, the undersigned shall complete and submit Standard Form-LLL, 
``Disclosure Form to Report Lobbying,'' in accordance with its 
instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all subawards at 
all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all subrecipients 
shall certify and disclose accordingly.
    This certification is a material representation of fact upon which 
reliance was placed when this transaction was made or entered into. 
Submission of this certification is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required certification shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

            Statement for Loan Guarantees and Loan Insurance

    The undersigned states, to the best of his or her knowledge and 
belief, that:
    If any funds have been paid or will be paid to any person for 
influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with this commitment 
providing for the United States to insure or guarantee a loan, the 
undersigned shall complete and submit Standard Form-LLL, ``Disclosure 
Form to Report Lobbying,'' in accordance with its instructions.
    Submission of this statement is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required statement shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

[[Page 81]]

        Appendix B to Part 28--Disclosure Form to Report Lobbying
[GRAPHIC] [TIFF OMITTED] TC23OC91.000


[[Page 82]]


[GRAPHIC] [TIFF OMITTED] TC23OC91.001


[[Page 83]]


[GRAPHIC] [TIFF OMITTED] TC23OC91.002


[[Page 84]]





PART 32--ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS--Table of Contents




                           Subpart A--General

Sec.
32.1  Purpose.
32.2  Definitions
32.3  Effect on other issuances.
32.4  Deviations.
32.5  Subawards.

                    Subpart B--Pre-Award Requirements

32.10  Purpose.
32.11  Pre-award policies.
32.12  Forms for applying for Federal assistance.
32.13  Debarment and suspension.
32.14  Special award conditions.
32.15  Metric system of measurement.
32.16  Resource Conservation and Recovery Act (RCRA).
32.17  Certifications and representations.

                   Subpart C--Post-Award Requirements

                    Financial and Program Management

32.20  Purpose of financial and program management.
32.21  Standards for financial management systems.
32.22  Payment.
32.23  Cost sharing or matching.
32.24  Program income.
32.25  Revision of budget and program plans.
32.26  Non-Federal audits.
32.27  Allowable costs.
32.28  Period of availability of funds.

                           Property Standards

32.30  Purpose of property standards.
32.31  Insurance coverage.
32.32  Real property.
32.33  Federally-owned and exempt property.
32.34  Equipment.
32.35  Supplies.
32.36  Intangible property.
32.37  Property trust relationship.

                          Procurement Standards

32.40  Purpose of procurement standards.
32.41  Recipient responsibilities.
32.42  Codes of conduct.
32.43  Competition.
32.44  Procurement procedures.
32.45  Cost and price analysis.
32.46  Procurement records.
32.47  Contract administration.
32.48  Contract provisions.
32.49  Resource Conservation and Recovery Act.

                           Reports and Records

32.50  Purpose of reports and records.
32.51  Monitoring and reporting program performance.
32.52  Financial reporting.
32.53  Retention and access requirements for records.

                       Termination and Enforcement

32.60  Purpose of termination and enforcement.
32.61  Termination.
32.62  Enforcement.

                 Subpart D--After-the-Award Requirements

32.70  Purpose.
32.71  Closeout procedures.
32.72  Subsequent adjustments and continuing responsibilities.
32.73  Collection of amounts due.

Appendix A to Part 32--Contract Provisions

    Authority:  5 U.S.C. 301 and 10 U.S.C. 113.

    Source: 63 FR 12188, Mar. 12, 1998, unless otherwise noted.



                           Subpart A--General



Sec. 32.1  Purpose.

    (a) General. This part implements OMB Circular A-110 \1\ and 
establishes uniform administrative requirements for awards and subawards 
to institutions of higher education, hospitals, and other non-
governmental, non-profit organizations.
---------------------------------------------------------------------------

    \1\ For copies of the Circular, contact the Office of Management and 
Budget, EOP Publications, 725 17th St. NW, New Executive Office 
Building, Washington, DC 20503.
---------------------------------------------------------------------------

    (b) Relationship to other parts. This part is an integral part of 
the DoD Grant and Agreement Regulations (DoDGARs), which comprise this 
subchapter of the Code of Federal Regulations. This part includes 
references to other parts of the DoDGARs that implement Governmentwide 
guidance and provide uniform internal policies and procedures for DoD 
Components that make or administer awards. Although parts 21 and 22 of 
this subchapter do not impose any direct requirements on recipients, and 
recipients therefore are not required to be familiar with those parts, 
the information in those parts

[[Page 85]]

concerning internal policies and procedures should be helpful to 
recipients of DoD awards.
    (c) Prime awards. DoD Components shall apply the provisions of this 
part to awards to recipients that are institutions of higher education, 
hospitals, and other non-profit organizations. DoD Components shall not 
impose additional or inconsistent requirements, except as provided in 
Secs. 32.4 and 32.14, or unless specifically required by Federal statute 
or executive order.
    (d) Subawards. Any legal entity that receives an award from a DoD 
Component shall apply the provisions of this part to subawards with 
institutions of higher education, hospitals, and other non-profit 
organizations. Thus, a governmental or for-profit organization, whose 
prime award from a DoD Component is subject to 32 CFR part 33 or part 
34, respectively, applies this part to subawards with institutions of 
higher education, hospitals, or other non-profit organizations. It 
should be noted that subawards are for the performance of substantive 
work under awards, and are distinct from contracts for procuring goods 
and services. It should be further noted that non-profit organizations 
that implement Federal programs for the States are also subject to State 
requirements.



Sec. 32.2  Definitions.

    The following are definitions of terms used in this part. Grants 
officers are cautioned that terms may be defined differently in this 
part than they are in other parts of the DoD Grant and Agreement 
Regulations, because this part implements OMB Circular A-110 and uses 
definitions as stated in that Circular. In such cases, the definition 
given in this section applies to the term as it is used in this part, 
and the definition given in other parts applies to the term as it is 
used in those parts. For example, suspension is defined in this section 
to mean temporary withdrawal of Federal sponsorship under an award, but 
is defined at 32 CFR 25.105 to be an action taken to exclude a person 
from participating in a grant, cooperative agreement, or other covered 
transaction.
    Accrued expenditures. The charges incurred by the recipient during a 
given period requiring the provision of funds for:
    (1) Goods and other tangible property received;
    (2) Services performed by employees, contractors, subrecipients, and 
other payees; and
    (3) Other amounts becoming owed under programs for which no current 
services or performance is required.
    Accrued income. The sum of:
    (1) Earnings during a given period from:
    (i) Services performed by the recipient; and
    (ii) Goods and other tangible property delivered to purchasers.
    (2) Amounts becoming owed to the recipient for which no current 
services or performance is required by the recipient.
    Acquisition cost of equipment. The net invoice price of the 
equipment, including the cost of modifications, attachments, 
accessories, or auxiliary apparatus necessary to make the property 
usable for the purpose for which it was acquired. Other charges, such as 
the cost of installation, transportation, taxes, duty or protective in-
transit insurance, shall be included or excluded from the unit 
acquisition cost in accordance with the recipient's regular accounting 
practices.
    Advance. A payment made by Treasury check or other appropriate 
payment mechanism to a recipient upon its request either before outlays 
are made by the recipient or through the use of predetermined payment 
schedules.
    Award. Financial assistance that provides support or stimulation to 
accomplish a public purpose. Awards include grants and other agreements 
in the form of money or property in lieu of money, by the Federal 
Government to an eligible recipient. The term does not include: 
Technical assistance, which provides services instead of money; other 
assistance in the form of loans, loan guarantees, interest subsidies, or 
insurance; direct payments of any kind to individuals; and, contracts 
which are required to be entered into and administered under procurement 
laws and regulations.
    Cash contributions. The recipient's cash outlay, including the 
outlay of

[[Page 86]]

money contributed to the recipient by third parties.
    Closeout. The process by which the grants officer administering an 
award made by a DoD Component determines that all applicable 
administrative actions and all required work of the award have been 
completed by the recipient and DoD Component.
    Contract. A procurement contract under an award or subaward, and a 
procurement subcontract under a recipient's or subrecipient's contract.
    Cost sharing or matching. That portion of project or program costs 
not borne by the Federal Government.
    Date of completion. The date on which all work under an award is 
completed or the date on the award document, or any supplement or 
amendment thereto, on which Federal sponsorship ends.
    Disallowed costs. Those charges to an award that the grants officer 
administering an award made by a DoD Component determines to be 
unallowable, in accordance with the applicable Federal cost principles 
or other terms and conditions contained in the award.
    DoD Component. A Military Department, Defense Agency, DoD field 
activity, or organization within the Office of the Secretary of Defense 
that provides or administers an award to a recipient.
    Equipment. Tangible nonexpendable personal property including exempt 
property charged directly to the award having a useful life of more than 
one year and an acquisition cost of $5,000 or more per unit. However, 
consistent with recipient policy, lower limits may be established.
    Excess property. Property under the control of any DoD Component 
that, as determined by the head thereof, is no longer required for its 
needs or the discharge of its responsibilities.
    Exempt property. Tangible personal property acquired in whole or in 
part with Federal funds, where the DoD Component has statutory authority 
to vest title in the recipient without further obligation to the Federal 
Government. An example of exempt property authority is contained in the 
Federal Grant and Cooperative Agreement Act (31 U.S.C. 6306), for 
property acquired under an award to conduct basic or applied research by 
a non-profit institution of higher education or non-profit organization 
whose principal purpose is conducting scientific research.
    Federal funds authorized. The total amount of Federal funds 
obligated by a DoD Component for use by the recipient. This amount may 
include any authorized carryover of unobligated funds from prior funding 
periods when permitted by agency regulations or agency implementing 
instructions.
    Federal share (of real property, equipment, or supplies). That 
percentage of the property's acquisition costs and any improvement 
expenditures paid with Federal funds.
    Funding period. The period of time when Federal funding is available 
for obligation by the recipient.
    Intangible property and debt instruments. Property that includes, 
but is not limited to, trademarks, copyrights, patents and patent 
applications and such property as loans, notes and other debt 
instruments, lease agreements, stock and other instruments of property 
ownership, whether considered tangible or intangible.
    Obligations. The amounts of orders placed, contracts and grants 
awarded, services received and similar transactions during a given 
period that require payment by the recipient during the same or a future 
period.
    Outlays or expenditures. Charges made to the project or program. 
They may be reported on a cash or accrual basis. For reports prepared on 
a cash basis, outlays are the sum of cash disbursements for direct 
charges for goods and services, the amount of indirect expense charged, 
the value of third party in-kind contributions applied and the amount of 
cash advances and payments made to subrecipients. For reports prepared 
on an accrual basis, outlays are the sum of cash disbursements for 
direct charges for goods and services, the amount of indirect expense 
incurred, the value of in-kind contributions applied, and the net 
increase (or decrease) in the amounts owed by the recipient for goods 
and other property received, for services performed by employees, 
contractors, subrecipients and other payees and other amounts becoming 
owed under programs for which no current services or performance are 
required.

[[Page 87]]

    Personal property. Property of any kind except real property. It may 
be tangible, having physical existence, or intangible, having no 
physical existence, such as copyrights, patents, or securities.
    Prior approval. Written approval by an authorized official 
evidencing prior consent.
    Program income. Gross income earned by the recipient that is 
directly generated by a supported activity or earned as a result of the 
award (see exclusions in Sec. 32.24(e) and (h)). Program income 
includes, but is not limited to, income from fees for services 
performed, the use or rental of real or personal property acquired under 
federally-funded projects, the sale of commodities or items fabricated 
under an award, license fees and royalties on patents and copyrights, 
and interest on loans made with award funds. Interest earned on advances 
of Federal funds is not program income. Except as otherwise provided in 
program regulations or the terms and conditions of the award, program 
income does not include the receipt of principal on loans, rebates, 
credits, discounts, etc., or interest earned on any of them.
    Project costs. All allowable costs, as set forth in the applicable 
Federal cost principles, incurred by a recipient and the value of the 
contributions made by third parties in accomplishing the objectives of 
the award during the project period.
    Project period. The period established in the award document during 
which Federal sponsorship begins and ends.
    Property. Real property and personal property (equipment, supplies, 
intangible property and debt instruments), unless stated otherwise.
    Real property. Land, including land improvements, structures and 
appurtenances thereto, but excluding movable machinery and equipment.
    Recipient. An organization receiving financial assistance directly 
from DoD Components to carry out a project or program. The term includes 
public and private institutions of higher education, public and private 
hospitals, and other quasi-public and private non-profit organizations 
such as, but not limited to, community action agencies, research 
institutes, educational associations, and health centers. The term also 
includes consortia comprised of any combination of universities, other 
nonprofit organizations, governmental organizations, for-profit 
organizations, and other entities, to the extent that the consortia are 
legally incorporated as nonprofit organizations. The term does not 
include Government-owned contractor-operated facilities or research 
centers providing continued support for mission-oriented, large-scale 
programs that are Government-owned or controlled, or are designated as 
federally-funded research and development centers.
    Research and development. All research activities, both basic and 
applied, and all development activities that are supported at 
universities, colleges, and other non-profit institutions. Research is 
defined as a systematic study directed toward fuller scientific 
knowledge or understanding of the subject studied. Development is the 
systematic use of knowledge and understanding gained from research 
directed toward the production of useful materials, devices, systems, or 
methods, including design and development of prototypes and processes. 
The term research also includes activities involving the training of 
individuals in research techniques where such activities utilize the 
same facilities as other research and development activities and where 
such activities are not included in the instruction function.
    Small award. An award not exceeding the simplified acquisition 
threshold fixed at 41 U.S.C. 403(11) (currently $100,000).
    Subaward. An award of financial assistance in the form of money, or 
property in lieu of money, made under an award by a recipient to an 
eligible subrecipient or by a subrecipient to a lower tier subrecipient. 
The term includes financial assistance when provided by any legal 
agreement, even if the agreement is called a contract, but does not 
include procurement of goods and services nor does it include any form 
of assistance which is excluded from the definition of ``award'' in this 
section.
    Subrecipient. The legal entity to which a subaward is made and which 
is

[[Page 88]]

accountable to the recipient for the use of the funds provided.
    Supplies. All personal property excluding equipment, intangible 
property, and debt instruments as defined in this section, and 
inventions of a contractor conceived or first actually reduced to 
practice in the performance of work under a funding agreement (``subject 
inventions''), as defined in 37 CFR part 401, ``Rights to Inventions 
Made by Nonprofit Organizations and Small Business Firms Under 
Government Grants, Contracts, and Cooperative Agreements.''
    Suspension. An action by a DoD Component that temporarily withdraws 
Federal sponsorship under an award, pending corrective action by the 
recipient or pending a decision to terminate the award by the DoD 
Component. Suspension of an award is a separate action from suspension 
of a participant under 32 CFR part 25.
    Termination. The cancellation of an award, in whole or in part, at 
any time prior to the date of completion.
    Third party in-kind contributions. The value of non-cash 
contributions provided by non-Federal third parties. Third party in-kind 
contributions may be in the form of real property, equipment, supplies, 
and the value of goods and services directly benefiting and specifically 
identifiable to the project or program.
    Unliquidated obligations. The amount of obligations incurred by the 
recipient:
    (1) That have not been paid, if financial reports are prepared on a 
cash basis.
    (2) For which an outlay has not been recorded, if reports are 
prepared on an accrued expenditure basis.
    Unobligated balance. The portion of the funds authorized by a DoD 
Component that has not been obligated by the recipient and is determined 
by deducting the cumulative obligations from the cumulative funds 
authorized.
    Unrecovered indirect cost. The difference between the amount awarded 
and the amount which could have been awarded under the recipient's 
approved negotiated indirect cost rate.
    Working capital advance. A procedure whereby funds are advanced to 
the recipient to cover its estimated disbursement needs for a given 
initial period.



Sec. 32.3  Effect on other issuances.

    For awards subject to this part, all administrative requirements of 
codified program regulations, program manuals, handbooks and other 
nonregulatory materials which are inconsistent with the requirements of 
this part shall be superseded, except to the extent they are required by 
statute, or authorized in accordance with the deviations provision in 
Sec. 32.4.



Sec. 32.4  Deviations.

    (a) Individual deviations. Individual deviations affecting only one 
award may be approved by DoD Components in accordance with procedures 
stated in 32 CFR 21.125(a) and (c).
    (b) Small awards. DoD Components may apply less restrictive 
requirements than the provisions of this part when awarding small 
awards, except for those requirements which are statutory.
    (c) Other class deviations. (1) For classes of awards other than 
small awards, the Director of Defense Research and Engineering (DDR&E), 
or his or her designee, may grant exceptions from the requirements of 
this part:
    (i) With the written concurrence of the Office of the Management and 
Budget (OMB). The DDR&E, or his or her designee, shall provide written 
notification to OMB of the Department of Defense's intention to grant a 
class deviation; and
    (ii) When exceptions are not prohibited by statute.
    (2) DoD Components shall request approval for such deviations in 
accordance with 32 CFR 21.125(b) and (c). However, in the interest of 
maximum uniformity, exceptions from the requirements of this part shall 
be permitted only in unusual circumstances.



Sec. 32.5  Subawards.

    Unless sections of this part specifically exclude subrecipients from 
coverage, the provisions of this part shall be applied to subrecipients 
performing

[[Page 89]]

work under awards if such subrecipients are institutions of higher 
education, hospitals or other non-profit organizations. State and local 
government subrecipients are subject to the provisions of 32 CFR part 
33. Subrecipients that are for-profit organizations are subject to 32 
CFR part 34.



                    Subpart B--Pre-Award Requirements



Sec. 32.10  Purpose.

    Sections 32.11 through 32.17 prescribe application forms and 
instructions and other pre-award matters.



Sec. 32.11  Pre-award policies.

    (a) Use of grants, cooperative agreements, and contracts. (1) OMB 
Circular A-110 states that:
    (i) In each instance, the Federal awarding agency shall decide on 
the appropriate award instrument (i.e., grant, cooperative agreement, or 
contract).
    (ii) The Federal Grant and Cooperative Agreement Act (31 U.S.C. 
6301-6308) governs the use of grants, cooperative agreements, and 
contracts. Under that Act:
    (A) A grant or cooperative agreement shall be used only when the 
principal purpose of a transaction is to accomplish a public purpose of 
support or stimulation authorized by Federal statute.
    (B) Contracts shall be used when the principal purpose is 
acquisition of property or services for the direct benefit or use of the 
Federal Government.
    (C) The statutory criterion for choosing between grants and 
cooperative agreements is that for the latter, ``substantial involvement 
is expected between the executive agency and the State, local 
government, or other recipient when carrying out the activity 
contemplated in the agreement.''
    (2) In selecting the appropriate award instruments, DoD Components' 
grants officers shall comply with the DoD implementation of the Federal 
Grant and Cooperative Agreement Act at 32 CFR 21.205(a) and 32 CFR part 
22, subpart B.
    (b) Public notice and priority setting. As a matter of 
Governmentwide policy, Federal awarding agencies shall notify the public 
of intended funding priorities for programs that use discretionary 
awards, unless funding priorities are established by Federal statute. 
For DoD Components, compliance with competition policies and statutory 
requirements implemented in 32 CFR part 22, subpart C, shall constitute 
compliance with this Governmentwide policy.



Sec. 32.12  Forms for applying for Federal assistance.

    (a) DoD Components shall comply with the applicable report clearance 
requirements of 5 CFR part 1320, ``Controlling Paperwork Burdens on the 
Public,'' with regard to all forms used in place of or as a supplement 
to the Standard Form 424 2 (SF-424) series.
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    \2\ For copies of Standard Forms listed in this part, contact 
regional grants administration offices of the Office of Naval Research. 
Addresses for the offices are listed in the ``DoD Directory of Contract 
Administration Services Components,'' DLAH 4105.4, which can be obtained 
from: Defense Logistics Agency, Publications Distribution Division 
(DASC-WDM), 8725 John J. Kingman Rd., Suite 0119, Fort Belvoir, VA 
22060-6220.
---------------------------------------------------------------------------

    (b) Applicants shall use the SF-424 series or those forms and 
instructions prescribed by DoD Components.
    (c) For Federal programs covered by E.O. 12372 (3 CFR, 1982 Comp., 
p. 197), ``Intergovernmental Review of Federal Programs,'' the applicant 
shall complete the appropriate sections of the SF-424 (Application for 
Federal Assistance) indicating whether the application was subject to 
review by the State Single Point of Contact (SPOC). The name and address 
of the SPOC for a particular State can be obtained from the DoD 
Component or the Catalog of Federal Domestic Assistance. The SPOC shall 
advise the applicant whether the program for which application is made 
has been selected by that State for review.
    (d) DoD Components that do not use the SF-424 form should indicate 
whether the application is subject to review by the State under E.O. 
12372.



Sec. 32.13  Debarment and suspension.

    DoD Components and recipients shall comply with the nonprocurement 
debarment and suspension common rule at 32 CFR part 25. This common rule

[[Page 90]]

restricts subawards and contracts with certain parties that are 
debarred, suspended or otherwise excluded from or ineligible for 
participation in Federal assistance programs or activities.



Sec. 32.14  Special award conditions.

    (a) DoD Components may impose additional requirements as needed, 
over and above those provided in this part, if an applicant or 
recipient:
    (1) Has a history of poor performance;
    (2) Is not financially stable;
    (3) Has a management system that does not meet the standards 
prescribed in this part;
    (4) Has not conformed to the terms and conditions of a previous 
award; or
    (5) Is not otherwise responsible.
    (b) Before imposing additional requirements, DoD Components shall 
notify the applicant or recipient in writing as to:
    (1) The nature of the additional requirements;
    (2) The reason why the additional requirements are being imposed;
    (3) The nature of the corrective action needed;
    (4) The time allowed for completing the corrective actions; and
    (5) The method for requesting reconsideration of the additional 
requirements imposed.
    (c) Any special conditions shall be promptly removed once the 
conditions that prompted them have been corrected.
    (d) Grants officers:
    (1) Should coordinate the imposition and removal of special award 
conditions with the cognizant grants administration office identified in 
32 CFR 22.710.
    (2) Shall include in the award file the written notification to the 
recipient, described in paragraph (b) of this section, and the 
documentation required by 32 CFR 22.410(b).



Sec. 32.15  Metric system of measurement.

    The Metric Conversion Act, as amended by the Omnibus Trade and 
Competitiveness Act (15 U.S.C. 205) declares that the metric system is 
the preferred measurement system for U.S. trade and commerce, and for 
Federal agencies' procurements, grants, and other business-related 
activities. DoD grants officers shall comply with requirements 
concerning the use of the metric system at 32 CFR 22.530.



Sec. 32.16  Resource Conservation and Recovery Act (RCRA).

    Recipients' procurements shall comply with applicable requirements 
of the Resource Conservation and Recovery Act (RCRA), as described at 
Sec. 32.49.



Sec. 32.17  Certifications and representations.

    (a) OMB Circular A-110 authorizes and encourages each Federal 
agency, unless prohibited by statute or codified regulation, to allow 
recipients to submit certifications and representations required by 
statute, executive order, or regulation on an annual basis, if the 
recipients have ongoing and continuing relationships with the agency. 
The Circular further states that annual certifications and 
representations, when used, shall be signed by responsible officials 
with the authority to ensure recipients' compliance with the pertinent 
requirements.
    (b) DoD grants officers shall comply with the provisions concerning 
certifications and representations at 32 CFR 22.510. Those provisions 
ease burdens on recipients to the extent possible, given current 
statutory and regulatory impediments to obtaining all certifications on 
an annual basis. The provisions thereby also comply with the intent of 
OMB Circular A-110, to use less burdensome methods for obtaining 
certifications and representations, as such methods become feasible.



                   Subpart C--Post-Award Requirements

                    Financial and Program Management



Sec. 32.20  Purpose of financial and program management.

    Sections 32.21 through 32.28 prescribe standards for financial 
management systems, methods for making payments and rules for: 
satisfying cost sharing and matching requirements, accounting for 
program income, budget revision approvals, making audits, determining 
allowability of cost, and establishing fund availability.

[[Page 91]]



Sec. 32.21  Standards for financial management systems.

    (a) DoD Components shall require recipients to relate financial data 
to performance data and develop unit cost information whenever 
practical. For awards that support research, it should be noted that it 
is generally not appropriate to develop unit cost information.
    (b) Recipients' financial management systems shall provide for the 
following.
    (1) Accurate, current and complete disclosure of the financial 
results of each federally-sponsored project or program in accordance 
with the reporting requirements set forth in Sec. 32.52. If a DoD 
Component requires reporting on an accrual basis from a recipient that 
maintains its records on other than an accrual basis, the recipient 
shall not be required to establish an accrual accounting system. These 
recipients may develop such accrual data for its reports on the basis of 
an analysis of the documentation on hand.
    (2) Records that identify adequately the source and application of 
funds for federally-sponsored activities. These records shall contain 
information pertaining to Federal awards, authorizations, obligations, 
unobligated balances, assets, outlays, income and interest.
    (3) Effective control over and accountability for all funds, 
property and other assets. Recipients shall adequately safeguard all 
such assets and assure they are used solely for authorized purposes.
    (4) Comparison of outlays with budget amounts for each award. 
Whenever appropriate, financial information should be related to 
performance and unit cost data. As discussed in paragraph (a) of this 
section, unit cost data is generally not appropriate for awards that 
support research.
    (5) Written procedures to minimize the time elapsing between the 
transfer of funds to the recipient from the U.S. Treasury and the 
issuance or redemption of checks, warrants or payments by other means 
for program purposes by the recipient. To the extent that the provisions 
of the Cash Management Improvement Act (CMIA) (Pub. L. 101-453) govern, 
payment methods of State agencies, instrumentalities, and fiscal agents 
should be consistent with CMIA Treasury-State Agreements or the CMIA 
default procedures codified at 31 CFR part 205, ``Withdrawal of Cash 
from the Treasury for Advances under Federal Grant and Other Programs.''
    (6) Written procedures for determining the reasonableness, 
allocability and allowability of costs in accordance with the provisions 
of the applicable Federal cost principles (see Sec. 32.27) and the terms 
and conditions of the award.
    (7) Accounting records including cost accounting records that are 
supported by source documentation.
    (c) Where the Federal Government guarantees or insures the repayment 
of money borrowed by the recipient, the DoD Component, at its 
discretion, may require adequate bonding and insurance if the bonding 
and insurance requirements of the recipient are not deemed adequate to 
protect the interest of the Federal Government.
    (d) The DoD Component may require adequate fidelity bond coverage 
where the recipient lacks sufficient coverage to protect the Federal 
Government's interest.
    (e) Where bonds are required in the situations described above, the 
bonds shall be obtained from companies holding certificates of authority 
as acceptable sureties, as prescribed in 31 CFR part 223, ``Surety 
Companies Doing Business with the United States.''



Sec. 32.22  Payment.

    (a) Payment methods shall minimize the time elapsing between the 
transfer of funds from the United States Treasury and the issuance or 
redemption of checks, warrants, or payment by other means by the 
recipients. Payment methods of State agencies or instrumentalities shall 
be consistent with Treasury-State agreements under the Cash Management 
Improvement Act (CMIA) (31 U.S.C. 3335 and 6503) or default procedures 
in 31 CFR part 205.
    (b) Recipients are to be paid in advance, provided they maintain or 
demonstrate the willingness to maintain:
    (1) Written procedures that minimize the time elapsing between the 
transfer of funds and disbursement by the recipient; and

[[Page 92]]

    (2) Financial management systems that meet the standards for fund 
control and accountability as established in Sec. 32.21. Cash advances 
to a recipient organization shall be limited to the minimum amounts 
needed and be timed to be in accordance with the actual, immediate cash 
requirements of the recipient organization in carrying out the purpose 
of the approved program or project. The timing and amount of cash 
advances shall be as close as is administratively feasible to the actual 
disbursements by the recipient organization for direct program or 
project costs and the proportionate share of any allowable indirect 
costs.
    (c) Whenever possible, advances shall be consolidated to cover 
anticipated cash needs for all awards made by the DoD Component to the 
recipient.
    (1) Advance payment mechanisms include, but are not limited to, 
Treasury check and electronic funds transfer.
    (2) Advance payment mechanisms are subject to 31 CFR part 205.
    (3) Recipients shall be authorized to submit requests for advances 
and reimbursements at least monthly when electronic fund transfers are 
not used.
    (d) Requests for Treasury check advance payment shall be submitted 
on SF-270,\3\ ``Request for Advance or Reimbursement,'' or other forms 
as may be authorized by OMB. This form is not to be used when Treasury 
check advance payments are made to the recipient automatically through 
the use of a predetermined payment schedule or if inconsistent with DoD 
procedures for electronic funds transfer.
---------------------------------------------------------------------------

    \3\ See footnote 2 to Sec. 32.12(a).
---------------------------------------------------------------------------

    (e) Reimbursement is the preferred method when the requirements in 
paragraph (b) of this section cannot be met. DoD Components may also use 
this method on any construction agreement, or if the major portion of 
the construction project is accomplished through private market 
financing or Federal loans, and the Federal assistance constitutes a 
minor portion of the project.
    (1) When the reimbursement method is used, the responsible DoD 
payment office generally makes payment within 30 calendar days after 
receipt of the billing by the office designated to receive the billing, 
unless the billing is improper (for further information about timeframes 
for payments, see 32 CFR 22.810(c)(3)(ii)).
    (2) Recipients shall be authorized to submit requests for 
reimbursement at least monthly when electronic funds transfers are not 
used.
    (f) If a recipient cannot meet the criteria for advance payments and 
the grants officer, in consultation with the program manager, has 
determined that reimbursement is not feasible because the recipient 
lacks sufficient working capital, the award may provide for cash on a 
working capital advance basis. Under this procedure, the award shall 
provide for advancing cash to the recipient to cover its estimated 
disbursement needs for an initial period generally geared to the 
awardee's disbursing cycle. Thereafter, the award shall provide for 
reimbursing the recipient for its actual cash disbursements. The working 
capital advance method of payment shall not be used for recipients 
unwilling or unable to provide timely advances to their subrecipient to 
meet the subrecipient's actual cash disbursements.
    (g) To the extent available, recipients shall disburse funds 
available from repayments to and interest earned on a revolving fund, 
program income, rebates, refunds, contract settlements, audit recoveries 
and interest earned on such funds before requesting additional cash 
payments.
    (h) Unless otherwise required by statute, grants officers shall not 
withhold payments for proper charges made by recipients at any time 
during the project period unless:
    (1) A recipient has failed to comply with the project objectives, 
the terms and conditions of the award, or Federal reporting 
requirements; or
    (2) The recipient or subrecipient is delinquent in a debt to the 
United States under OMB Circular A-129, ``Managing Federal Credit 
Programs'' (see definitions of ``debt'' and ``delinquent debt,'' at 32 
CFR 22.105). Under such conditions, the grants officer may, upon 
reasonable notice, inform the recipient that payments shall not be made 
for obligations incurred after a specified date until the conditions are 
corrected or the indebtedness to

[[Page 93]]

the Federal Government is liquidated (also see 32 CFR 22.420(b)(2) and 
22.820).
    (i) Standards governing the use of banks and other institutions as 
depositories of funds advanced under awards are as follows:
    (1) Except for situations described in paragraph (i)(2) of this 
section, DoD Components shall not require separate depository accounts 
for funds provided to a recipient or establish any eligibility 
requirements for depositories for funds provided to a recipient. 
However, recipients must be able to account for the receipt, obligation 
and expenditure of funds.
    (2) Advances of Federal funds shall be deposited and maintained in 
insured accounts whenever possible.
    (j) Consistent with the national goal of expanding the opportunities 
for women-owned and minority-owned business enterprises, recipients 
shall be encouraged to use women-owned and minority-owned banks (a bank 
which is owned at least 50 percent by women or minority group members).
    (k) Recipients shall maintain advances of Federal funds in interest 
bearing accounts, unless:
    (1) The recipient receives less than $120,000 in Federal awards per 
year;
    (2) The best reasonably available interest bearing account would not 
be expected to earn interest in excess of $250 per year on Federal cash 
balances; or
    (3) The depository would require an average or minimum balance so 
high that it would not be feasible within the expected Federal and non-
Federal cash resources.
    (l)(1) Interest earned on Federal advances deposited in interest 
bearing accounts shall be remitted annually to Department of Health and 
Human Services, Payment Management System, PO Box 6021, Rockville, MD 
20852.
    (2) In keeping with Electronic Funds Transfer rules (31 CFR part 
206), interest should be remitted to the HHS Payment Management System 
through an electronic medium such as the FEDWIR Deposit System. 
Electronic remittances should be in the format and should include any 
data that are specified by the grants officer as being necessary to 
facilitate direct deposit in HHS' account at the Department of the 
Treasury.
    (3) Recipients that do not have electronic remittance capability 
should use a check.
    (4) Interest amounts up to $250 per year may be retained by the 
recipient for administrative expense.
    (m) Except as noted elsewhere in this part, only the following forms 
shall be authorized for the recipients in requesting advances and 
reimbursements. DoD Components shall not require more than an original 
and two copies of these forms.
    (1) SF-270, Request for Advance or Reimbursement. Each DoD Component 
shall adopt the SF-270 as a standard form for all nonconstruction 
programs when electronic funds transfer or predetermined advance methods 
are not used. DoD Components, however, have the option of using this 
form for construction programs in lieu of the SF-271,\4\ ``Outlay Report 
and Request for Reimbursement for Construction Programs.''
---------------------------------------------------------------------------

    \4\ See footnote 2 to Sec. 32.12(a).
---------------------------------------------------------------------------

    (2) SF-271, Outlay Report and Request for Reimbursement for 
Construction Programs. Each DoD Component shall adopt the SF-271 as the 
standard form to be used for requesting reimbursement for construction 
programs. However, a DoD Component may substitute the SF-270 when the 
DoD Component determines that it provides adequate information to meet 
Federal needs.



Sec. 32.23  Cost sharing or matching.

    (a) All contributions, including cash and third party in-kind, shall 
be accepted as part of the recipient's cost sharing or matching when 
such contributions meet all of the following criteria:
    (1) Are verifiable from the recipient's records.
    (2) Are not included as contributions for any other federally-
assisted project or program.
    (3) Are necessary and reasonable for proper and efficient 
accomplishment of project or program objectives.
    (4) Are allowable under the applicable cost principles.
    (5) Are not paid by the Federal Government under another award, 
except

[[Page 94]]

where authorized by Federal statute to be used for cost sharing or 
matching.
    (6) Are provided for in the approved budget when required by the DoD 
Component.
    (7) Conform to other provisions of this part, as applicable.
    (b) Unrecovered indirect costs (see definition in Sec. 32.2) may be 
included as part of cost sharing or matching.
    (c) Values for recipient contributions of services and property 
shall be established in accordance with the applicable cost principles. 
If a DoD Component authorizes recipients to donate buildings or land for 
construction/facilities acquisition projects or long-term use, the value 
of the donated property for cost sharing or matching shall be the lesser 
of:
    (1) The certified value of the remaining life of the property 
recorded in the recipient's accounting records at the time of donation; 
or
    (2) The current fair market value. However, when there is sufficient 
justification, the DoD Component may approve the use of the current fair 
market value of the donated property, even if it exceeds the certified 
value at the time of donation to the project. The DoD Component may 
accept the use of any reasonable basis for determining the fair market 
value of the property.
    (d) Volunteer services furnished by professional and technical 
personnel, consultants, and other skilled and unskilled labor may be 
counted as cost sharing or matching if the service is an integral and 
necessary part of an approved project or program. Rates for volunteer 
services shall be consistent with those paid for similar work in the 
recipient's organization. In those instances in which the required 
skills are not found in the recipient organization, rates shall be 
consistent with those paid for similar work in the labor market in which 
the recipient competes for the kind of services involved. In either 
case, paid fringe benefits that are reasonable, allowable, and allocable 
may be included in the valuation.
    (e) When an employer other than the recipient furnishes the services 
of an employee, these services shall be valued at the employee's regular 
rate of pay (plus an amount of fringe benefits that are reasonable, 
allowable, and allocable, but exclusive of overhead costs), provided 
these services are in the same skill for which the employee is normally 
paid.
    (f) Donated supplies may include such items as office supplies, 
laboratory supplies or workshop and classroom supplies. Value assessed 
to donated supplies included in the cost sharing or matching share shall 
be reasonable and shall not exceed the fair market value of the property 
at the time of the donation.
    (g) The method used for determining cost sharing or matching for 
donated equipment, buildings and land for which title passes to the 
recipient may differ according to the purpose of the award, if the 
purpose of the award is to:
    (1) Assist the recipient in the acquisition of equipment, buildings 
or land, the total value of the donated property may be claimed as cost 
sharing or matching; or
    (2) Support activities that require the use of equipment, buildings 
or land, normally only depreciation or use charges for equipment and 
buildings may be made. However, the full value of equipment or other 
capital assets and fair rental charges for land may be allowed, provided 
that the DoD Component has approved the charges.
    (h) The value of donated property shall be determined in accordance 
with the usual accounting policies of the recipient, with the following 
qualifications.
    (1) The value of donated land and buildings shall not exceed its 
fair market value at the time of donation to the recipient as 
established by an independent appraiser (e.g., certified real property 
appraiser or General Services Administration representative) and 
certified by a responsible official of the recipient.
    (2) The value of donated equipment shall not exceed the fair market 
value of equipment of the same age and condition at the time of 
donation.
    (3) The value of donated space shall not exceed the fair rental 
value of comparable space as established by an independent appraisal of 
comparable space and facilities in a privately-owned building in the 
same locality.

[[Page 95]]

    (4) The value of loaned equipment shall not exceed its fair rental 
value.
    (i) The following requirements pertain to the recipient's supporting 
records for in-kind contributions from third parties:
    (1) Volunteer services shall be documented and, to the extent 
feasible, supported by the same methods used by the recipient for its 
own employees.
    (2) The basis for determining the valuation for personal service and 
property shall be documented.



Sec. 32.24  Program income.

    (a) DoD Components shall apply the standards set forth in this 
section in requiring recipient organizations to account for program 
income related to projects financed in whole or in part with Federal 
funds.
    (b) Except as provided in paragraph (h) of this section, program 
income earned during the project period shall be retained by the 
recipient and, in accordance with the terms and conditions of the award, 
shall be used in one or more of the following ways:
    (1) Added to funds committed to the project by the DoD Component and 
recipient and used to further eligible project or program objectives.
    (2) Used to finance the non-Federal share of the project or program.
    (3) Deducted from the total project or program allowable cost in 
determining the net allowable costs on which the Federal share of costs 
is based.
    (c) When a program regulation or award authorizes the disposition of 
program income as described in paragraphs (b)(1) or (b)(2) of this 
section, program income in excess of any limits stipulated shall be used 
in accordance with paragraph (b)(3) of this section.
    (d) In the event that program regulations or the terms and 
conditions of the award do not specify how program income is to be used, 
paragraph (b)(3) of this section shall apply automatically to all 
projects or programs except research. For awards that support research, 
paragraph (b)(1) of this section shall apply automatically unless the 
terms and conditions specify another alternative or the recipient is 
subject to special award conditions, as indicated in Sec. 32.14.
    (e) Unless program regulations or the terms and conditions of the 
award provide otherwise, recipients shall have no obligation to the 
Federal Government regarding program income earned after the end of the 
project period.
    (f) If authorized by program regulations or the terms and conditions 
of the award, costs incident to the generation of program income may be 
deducted from gross income to determine program income, provided these 
costs have not been charged to the award.
    (g) Proceeds from the sale of property shall be handled in 
accordance with the requirements of the Property Standards (see 
Secs. 32.30 through 32.37).
    (h) Unless program regulations or the terms and condition of the 
award provide otherwise, recipients shall have no obligation to the 
Federal Government with respect to program income earned from license 
fees and royalties for copyrighted material, patents, patent 
applications, trademarks, and inventions produced under an award. Note 
that the Patent and Trademark Amendments (35 U.S.C. chapter 18) apply to 
inventions made under an experimental, developmental, or research award.



Sec. 32.25  Revision of budget and program plans.

    (a) The budget plan is the financial expression of the project or 
program as approved during the award process. It may include either the 
sum of the Federal and non-Federal shares, or only the Federal share, 
depending upon DoD Component requirements. It shall be related to 
performance for program evaluation purposes whenever appropriate.
    (b) Recipients are required to report deviations from budget and 
program plans, and request prior approvals for budget and program plan 
revisions, in accordance with this section.
    (c) For nonconstruction awards, recipients shall request prior 
approvals from the cognizant grants officer for one or more of the 
following program or budget related reasons.
    (1) Change in the scope or the objective of the project or program 
(even if there is no associated budget revision requiring prior written 
approval).

[[Page 96]]

    (2) Change in a key person specified in the application or award 
document.
    (3) The absence for more than three months, or a 25 percent 
reduction in time devoted to the project, by the approved project 
director or principal investigator.
    (4) The need for additional Federal funding.
    (5) The transfer of amounts budgeted for indirect costs to absorb 
increases in direct costs, or vice versa, if approval is required by the 
DoD Component. DoD Components should require this prior approval only in 
exceptional circumstances. The requirement in each such case must be 
stated in the award document.
    (6) The inclusion, unless waived by the DoD Component, of costs that 
require prior approval in accordance with OMB Circular A-21,\5\ ``Cost 
Principles for Institutions of Higher Education,'' OMB Circular A-
122,\6\ ``Cost Principles for Non-Profit Organizations,'' or Appendix E 
to 45 CFR part 74, ``Principles for Determining Costs Applicable to 
Research and Development under Grants and Contracts with Hospitals,'' or 
48 CFR part 31, ``Contract Cost Principles and Procedures,'' as 
applicable. However, it should be noted that many of the prior approvals 
in these cost principles are appropriately waived only after 
consultation with the cognizant federal agency responsible for 
negotiating the recipient's indirect costs.
---------------------------------------------------------------------------

    \5\ See footnote 1 to Sec. 32.1(a).
    \6\ See footnote 1 to Sec. 32.1(a).
---------------------------------------------------------------------------

    (7) The transfer of funds allotted for training allowances (direct 
payment to trainees) to other categories of expense.
    (8) Unless described in the application and funded in the approved 
awards, the subaward, transfer or contracting out of any work under an 
award. This provision does not apply to the purchase of supplies, 
material, equipment or general support services.
    (9) If required by the DoD Component, the transfer of funds among 
direct cost categories that is described in paragraph (e) of this 
section.
    (d) (1) Except for requirements listed in paragraphs (c)(1) and 
(c)(4) of this section, OMB Circular A-110 authorizes DoD Components, at 
their option, to waive cost-related and administrative prior written 
approvals required by this part and OMB Circulars A-21 and A-122 (but 
see cautionary note at end of paragraph (c)(5) of this section).
    (2) The two prior approvals listed in paragraphs (d)(2)(i) and (ii) 
of this section are automatically waived unless the award document 
states otherwise. DoD Components should override this automatic waiver 
and require the prior approvals, especially for research awards, only in 
exceptional circumstances. Absent an override in the award terms and 
conditions, recipients need not obtain prior approvals before:
    (i) Incurring pre-award costs 90 calendar days prior to award 
(incurring pre-award costs more than 90 calendar days prior to award 
would still require the prior approval of the DoD Component). All pre-
award costs are incurred at the recipient's risk (i.e., the DoD 
Component is under no obligation to reimburse such costs if for any 
reason the recipient does not receive an award or if the award is less 
than anticipated and inadequate to cover such costs).
    (ii) Carrying forward unobligated balances to subsequent funding 
periods.
    (3) Under certain conditions, a DoD Component may authorize a 
recipient to initiate, without prior approval, a one-time, no-cost 
extension (i.e., an extension in the expiration date of an award that 
does not require additional Federal funds) for a period of up to twelve 
months, as long as the no-cost extension does not involve a change in 
the approved objectives or scope of the project. The conditions for 
waiving this prior approval requirement are that the DoD Component must:
    (i) Judge that the recipient's subsequently initiating a one-time, 
no-cost extension would not cause the DoD Component to fail to comply 
with DoD funding policies (for further information on the location of 
DoD funding policies, grants officers may refer to Appendix C to 32 CFR 
part 22).
    (ii) Require a recipient that wishes to initiate a one-time, no-cost 
extension to so notify the office that made the award at least 10 
calendar days before the original expiration date of the award.

[[Page 97]]

    (e) The DoD Component may, at its option, restrict the transfer of 
funds among direct cost categories, functions and activities for awards 
in which the Federal share of the project exceeds $100,000 and the 
cumulative amount of such transfers exceeds or is expected to exceed 10 
percent of the total budget as last approved by the DoD Component. As a 
matter of DoD policy, requiring prior approvals for such transfers 
generally is not appropriate for grants to support research. No DoD 
Component shall permit a transfer that would cause any Federal 
appropriation or part thereof to be used for purposes other than those 
consistent with the original intent of the appropriation.
    (f) For construction awards, recipients shall request prior written 
approval promptly from grants officers for budget revisions whenever:
    (1) The revision results from changes in the scope or the objective 
of the project or program;
    (2) The need arises for additional Federal funds to complete the 
project; or
    (3) A revision is desired which involves specific costs for which 
prior written approval requirements may be imposed consistent with 
applicable OMB cost principles listed in Sec. 32.27.
    (g) When a DoD Component makes an award that provides support for 
both construction and nonconstruction work, the DoD Component may 
require the recipient to request prior approval from the grants officer 
before making any fund or budget transfers between the two types of work 
supported.
    (h) No other prior approval requirements for specific items may be 
imposed unless a deviation has been approved, in accordance with the 
deviation procedures in Sec. 32.4(c).
    (i) For both construction and nonconstruction awards, DoD Components 
shall require recipients to notify the grants officer in writing 
promptly whenever the amount of Federal authorized funds is expected to 
exceed the needs of the recipient for the project period by more than 
$5000 or five percent of the Federal award, whichever is greater. This 
notification shall not be required if an application for additional 
funding is submitted for a continuation award.
    (j) When requesting approval for budget revisions, recipients shall 
use the budget forms that were used in the application unless the grants 
officer indicates a letter of request suffices.
    (k) Within 30 calendar days from the date of receipt of the request 
for budget revisions, the grants officer shall review the request and 
notify the recipient whether the budget revisions have been approved. If 
the revision is still under consideration at the end of 30 calendar 
days, the grants officer shall inform the recipient in writing of the 
date when the recipient may expect the decision.



Sec. 32.26  Non-Federal audits.

    (a) Recipients and subrecipients that are institutions of higher 
education or other non-profit organizations (including hospitals) shall 
be subject to the audit requirements contained in the Single Audit Act 
Amendments of 1996 (31 U.S.C. 7501-7507) and revised OMB Circular A-
133,\7\ ``Audits of States, Local Governments, and Non-Profit 
Organizations.''
---------------------------------------------------------------------------

    \7\ See footnote 1 to Sec. 32.1(a).
---------------------------------------------------------------------------

    (b) State and local governments that are subrecipients shall be 
subject to the audit requirements contained in the Single Audit Act 
Amendments of 1996 (31 U.S.C. 7501-7507) and revised OMB Circular A-133, 
``Audits of States, Local Governments, and Non-Profit Organizations.''
    (c) Hospitals that are subrecipients and are not covered by the 
audit provisions of revised OMB Circular A-133 shall be subject to the 
audit requirements specified in award terms and conditions.
    (d) For-profit organizations that are subrecipients shall be subject 
to the audit requirements specified in 32 CFR 34.16.



Sec. 32.27  Allowable costs.

    (a) General. For each kind of recipient or subrecipient of a cost-
type assistance award, or each contractor receiving a. cost-type 
contract under an assistance award, there is a set of Federal principles 
for determining allowable costs. Allowability of costs shall be 
determined in accordance with the

[[Page 98]]

cost principles applicable to the entity incurring the costs.
    (b) Governmental organizations. Allowability of costs incurred by 
State, local or federally-recognized Indian tribal governments that may 
be subrecipients or contractors under awards subject to this part is 
determined in accordance with the provisions of OMB Circular A-87,\8\ 
``Cost Principles for State and Local Governments.''
---------------------------------------------------------------------------

    \8\ See footnote 1 to Sec. 32.1(a).
---------------------------------------------------------------------------

    (c) Non-profit organizations. The allowability of costs incurred by 
non-profit organizations that may be recipients or subrecipients of 
awards subject to this part, or contractors under such awards, is 
determined in accordance with the provisions of OMB Circular A-122, 
``Cost Principles for Non-Profit Organizations.''
    (d) Higher educational institutions. The allowability of costs 
incurred by institutions of higher education that may be recipients, 
subrecipients, or contractors is determined in accordance with the 
provisions of OMB Circular A-21, ``Cost Principles for Educational 
Institutions.''
    (e) Hospitals. The allowability of costs incurred by hospitals that 
are recipients, subrecipients, or contractors is determined in 
accordance with the provisions of Appendix E to 45 CFR part 74, 
``Principles for Determining Costs Applicable to Research and 
Development Under Grants and Contracts with Hospitals.''
    (f) For-profit organizations. The allowability of costs incurred by 
subrecipients or contractors that are either for-profit organizations or 
non-profit organizations listed in Attachment C to Circular A-122 is 
determined in accordance with the provisions of the Federal Acquisition 
Regulation (FAR) at 48 CFR part 31; however, the grants officer or the 
award terms and conditions may in rare cases authorize a determination 
of allowable costs that are in accordance with uniform cost accounting 
standards and comply with cost principles acceptable to the Department 
of Defense.



Sec. 32.28  Period of availability of funds.

    Where a funding period is specified, a recipient may charge to the 
award only allowable costs resulting from obligations incurred during 
the funding period and any pre-award costs (see Sec. 32.25(d)(2)(i)) 
authorized by the DoD Component.

                           Property Standards



Sec. 32.30  Purpose of property standards.

    Sections 32.31 through 32.37 set forth uniform standards governing 
management and disposition of property furnished by the Federal 
Government and property whose cost was charged to a project supported by 
a Federal award. DoD Components shall require recipients to observe 
these standards under awards and shall not impose additional 
requirements, unless specifically required by Federal statute. The 
recipient may use its own property management standards and procedures 
provided it observes the provisions of Secs. 32.31 through 32.37.



Sec. 32.31  Insurance coverage.

    Recipients shall, at a minimum, provide the equivalent insurance 
coverage for real property and equipment acquired with Federal funds as 
provided to property owned by the recipient. Federally-owned property 
need not be insured unless required by the terms and conditions of the 
award.



Sec. 32.32  Real property.

    Each DoD Component that makes awards under which real property is 
acquired in whole or in part with Federal funds shall prescribe 
requirements for recipients concerning the use and disposition of such 
property. Unless otherwise provided by statute, such requirements, at a 
minimum, shall contain the following:
    (a) Title to real property shall vest in the recipient subject to 
the condition that the recipient shall use the real property for the 
authorized purpose of the project as long as it is needed and shall not 
encumber the property without approval of the DoD Component.
    (b) The recipient shall obtain written approval by the grants 
officer for the use of real property in other federally sponsored 
projects when the recipient determines that the property is no longer 
needed for the purpose of the original project. Use in other projects

[[Page 99]]

shall be limited to those under federally sponsored projects (i.e., 
awards) or programs that have purposes consistent with those authorized 
for support by the DoD Component.
    (c) When the real property is no longer needed as provided in 
paragraphs (a) and (b) of this section, the recipient shall request 
disposition instructions from the DoD Component or its successor Federal 
agency. The responsible Federal agency shall observe one or more of the 
following disposition instructions:
    (1) The recipient may be permitted to retain title without further 
obligation to the Federal Government after it compensates the Federal 
Government for that percentage of the current fair market value of the 
property attributable to the Federal participation in the project.
    (2) The recipient may be directed to sell the property under 
guidelines provided by the DoD Component and pay the Federal Government 
for that percentage of the current fair market value of the property 
attributable to the Federal participation in the project (after 
deducting actual and reasonable selling and fix-up expenses, if any, 
from the sales proceeds). When the recipient is authorized or required 
to sell the property, proper sales procedures shall be established that 
provide for competition to the extent practicable and result in the 
highest possible return.
    (3) The recipient may be directed to transfer title to the property 
to the Federal Government or to an eligible third party provided that, 
in such cases, the recipient shall be entitled to compensation for its 
attributable percentage of the current fair market value of the 
property.



Sec. 32.33  Federally-owned and exempt property.

    (a) Federally-owned property. (1) Title to federally-owned property 
remains vested in the Federal Government. Recipients shall submit 
annually an inventory listing of federally-owned property in their 
custody to the DoD Component that made the award. Upon completion of the 
award or when the property is no longer needed, the recipient shall 
report the property to the DoD Component for further Federal agency 
utilization.
    (2) If the DoD Component that made the award has no further need for 
the property, it shall be declared excess and either:
    (i) Reported to the General Services Administration, in accordance 
with the Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 483(b)(2)), as implemented by General Services Administration 
regulations at 41 CFR 101-47.202; or
    (ii) Disposed of by alternative methods pursuant to other specific 
statutory authority. For example, DoD Components are authorized by the 
Federal Technology Transfer Act (15 U.S.C. 3710(i)), to donate research 
equipment to educational and non-profit organizations for the conduct of 
technical and scientific education and research activities--donations 
under this Act shall be in accordance with the DoD implementation of 
E.O. 12999 (3 CFR, 1996 Comp., p. 180), ``Educational Technology: 
Ensuring Opportunity for All Children in the Next Century,'' as 
applicable. Appropriate instructions shall be issued to the recipient by 
the DoD Component.
    (b) Exempt property. (1) When statutory authority exists, a DoD 
Component may vest title to property acquired with Federal funds in the 
recipient without further obligation to the Federal Government and under 
conditions the DoD Component considers appropriate. For example, under 
31 U.S.C. 6306, DoD Components may so vest title to tangible personal 
property under a grant or cooperative agreement for basic or applied 
research in a nonprofit institution of higher education or a nonprofit 
organization whose primary purpose is conducting scientific research. 
Such property is ``exempt property.''
    (2) As a matter of policy, DoD Components shall make maximum use of 
the authority of 31 U.S.C. 6306 to vest title to exempt property in 
institutions of higher education, without further obligation to the 
Government, to enhance the university infrastructure for future 
performance of defense research and related, science and engineering 
education.

[[Page 100]]

    (3) DoD Components may establish conditions, in regulation or in 
award terms and conditions, for vesting title to exempt property. Should 
a DoD Component not establish conditions, title to exempt property upon 
acquisition shall vest in the recipient without further obligation to 
the Federal Government.



Sec. 32.34  Equipment.

    (a) Title to equipment acquired by a recipient with Federal funds 
shall vest in the recipient, subject to conditions of this section.
    (b) The recipient shall not use equipment acquired with Federal 
funds to provide services to non-Federal outside organizations for a fee 
that is less than private companies charge for equivalent services, 
unless specifically authorized by Federal statute, for as long as the 
Federal Government retains an interest in the equipment.
    (c) The recipient shall use the equipment in the project or program 
for which it was acquired as long as needed, whether or not the project 
or program continues to be supported by Federal funds and shall not 
encumber the property without approval of the DoD Component that made 
the award. When no longer needed for the original project or program, 
the recipient shall use the equipment in connection with its other 
federally-sponsored activities, in the following order of priority:
    (1) First, activities sponsored by the DoD Component that funded the 
original project.
    (2) Second, activities sponsored by other DoD Components.
    (3) Then, activities sponsored by other Federal agencies.
    (d) During the time that equipment is used on the project or program 
for which it was acquired, the recipient shall make it available for use 
on other projects or programs if such other use will not interfere with 
the work on the project or program for which the equipment was 
originally acquired. First preference for such other use shall be given 
to other projects or programs sponsored by the DoD Component that 
financed the equipment; second preference shall be given to projects or 
programs sponsored by other DoD Components; and third preference shall 
be given to projects or programs sponsored by other Federal agencies. If 
the property is owned by the Federal Government, use on other activities 
not sponsored by the Federal Government shall be permissible if 
authorized by the DoD Component that financed the property. User charges 
shall be treated as program income.
    (e) When acquiring replacement equipment, the recipient may use the 
equipment to be replaced as trade-in or sell the equipment and use the 
proceeds to offset the costs of the replacement equipment subject to the 
approval of the DoD Component that financed the equipment.
    (f) The recipient's property management standards for equipment 
acquired with Federal funds and federally-owned property shall include 
all of the following:
    (1) Records for equipment and federally-owned property shall be 
maintained accurately and shall include the following information:
    (i) A description of the equipment or federally-owned property.
    (ii) Manufacturer's serial number, model number, Federal stock 
number, national stock number, or other identification number.
    (iii) Source of the equipment or federally-owned property, including 
the award number.
    (iv) Whether title vests in the recipient or the Federal Government.
    (v) Acquisition date (or date received, if the property was 
furnished by the Federal Government) and cost.
    (vi) Information from which one can calculate the percentage of 
Federal participation in the cost of the equipment (not applicable to 
property furnished by the Federal Government).
    (vii) Location and condition of the equipment or federally-owned 
property and the date the information was reported.
    (viii) Unit acquisition cost.
    (ix) Ultimate disposition data, including date of disposal and sales 
price or the method used to determine current fair market value where a 
recipient compensates the DoD Component that made the award for its 
share.
    (2) Property owned by the Federal Government shall be identified to 
indicate Federal ownership.

[[Page 101]]

    (3) A physical inventory of equipment and federally-owned property 
shall be taken and the results reconciled with the equipment records at 
least once every two years. Any differences between quantities 
determined by the physical inspection and those shown in the accounting 
records shall be investigated to determine the causes of the difference. 
The recipient shall, in connection with the inventory, verify the 
existence, current utilization, and continued need for the equipment or 
federally-owned property.
    (4) A control system shall be in effect to insure adequate 
safeguards to prevent loss, damage, or theft of the equipment or 
federally-owned property. Any loss, damage, or theft of equipment or 
federally-owned property shall be investigated and fully documented; if 
the property was owned by the Federal Government, the recipient shall 
promptly notify the DoD Component.
    (5) Adequate maintenance procedures shall be implemented to keep the 
equipment or federally-owned property in good condition.
    (6) Where the recipient is authorized or required to sell the 
equipment, proper sales procedures shall be established which provide 
for competition to the extent practicable and result in the highest 
possible return.
    (g) When the recipient no longer needs the equipment, the equipment 
may be used for other activities in accordance with the following 
standards.
    (1) For equipment with a current per unit fair market value of 
$5,000 or more, the recipient may retain the equipment for other uses 
provided that compensation is made to the DoD Component that originally 
made the award or its successor. The amount of compensation shall be 
computed by applying the percentage of Federal participation in the cost 
of the original project or program to the current fair market value of 
the equipment.
    (2) If the recipient has no need for the equipment, the recipient 
shall request disposition instructions from the DoD Component. The DoD 
Component shall issue instructions to the recipient no later than 120 
calendar days after the recipient's request and the following procedures 
shall govern:
    (i) The grants officer, in consultation with the program manager, 
shall judge whether the age and nature of the equipment warrant a 
screening procedure to determine whether the equipment is useful to a 
DoD Component or other Federal agency. If a screening procedure is 
warranted:
    (A) The DoD Component shall determine whether the equipment can be 
used to meet DoD requirements.
    (B) If no DoD requirement exists, the availability of the equipment 
shall be reported to the General Services Administration by the DoD 
Component to determine whether a requirement for the equipment exists in 
other Federal agencies.
    (ii) If so instructed or if disposition instructions are not issued 
within 120 calendar days after the recipient's request, the recipient 
shall sell the equipment and reimburse the DoD Component that made the 
award an amount computed by applying to the sales proceeds the 
percentage of Federal participation in the cost of the original project 
or program. However, the recipient shall be permitted to deduct and 
retain from the Federal share $500 or ten percent of the proceeds, 
whichever is less, for the recipient's selling and handling expenses.
    (iii) If the recipient is instructed to ship the equipment 
elsewhere, the recipient shall be reimbursed by the Federal Government 
by an amount which is computed by applying the percentage of the 
recipient's participation in the cost of the original project or program 
to the current fair market value of the equipment, plus any reasonable 
shipping or interim storage costs incurred.
    (iv) If the recipient is instructed to otherwise dispose of the 
equipment, the recipient shall be reimbursed by the DoD Component that 
made the award for such costs incurred in its disposition.
    (h) The DoD Component may reserve the right to transfer the title to 
the Federal Government or to a third party named by the Federal 
Government when such third party is otherwise eligible under existing 
statutes. Such transfer shall be subject to the following standards.

[[Page 102]]

    (1) The equipment shall be appropriately identified in the award or 
otherwise made known to the recipient in writing. For exempt property, 
in accordance with Sec. 32.33(b)(3), note that this identification must 
occur by the time of award, or title to the property vests in the 
recipient without further obligation to the Government.
    (2) The DoD Component shall issue disposition instructions within 
120 calendar days after receipt of a final inventory. The final 
inventory shall list all equipment acquired with award funds and 
federally-owned property. If the DoD Component fails to issue 
disposition instructions for equipment within the 120 calendar day 
period, the recipient shall apply the standards of paragraph (g) of this 
section.
    (3) When the DoD Component exercises its right to take title, the 
equipment shall be subject to the provisions for federally-owned 
property.



Sec. 32.35  Supplies.

    (a) Title to supplies shall vest in the recipient upon acquisition. 
If there is a residual inventory of unused supplies exceeding $5,000 in 
total aggregate value upon termination or completion of the project or 
program and the supplies are not needed for any other federally-
sponsored project or program, the recipient shall retain the supplies 
for use on non-Federal sponsored activities or sell them, but shall, in 
either case, compensate the Federal Government for its share. The amount 
of compensation shall be computed in the same manner as for equipment.
    (b) The recipient shall not use supplies acquired with Federal funds 
to provide services to non-Federal outside organizations for a fee that 
is less than private companies charge for equivalent services, unless 
specifically authorized by Federal statute as long as the Federal 
Government retains an interest in the supplies.



Sec. 32.36  Intangible property.

    (a) The recipient may copyright any work that is subject to 
copyright and was developed, or for which ownership was purchased, under 
an award. DoD Components reserve a royalty-free, nonexclusive and 
irrevocable right to reproduce, publish, or otherwise use the work for 
Federal purposes, and to authorize others to do so.
    (b) Recipients are subject to applicable regulations governing 
patents and inventions, including Governmentwide regulations issued by 
the Department of Commerce at 37 CFR part 401, ``Rights to Inventions 
Made by Nonprofit Organizations and Small Business Firms Under 
Government Grants, Contracts and Cooperative Agreements.''
    (c) Unless waived by the DoD Component making the award, the Federal 
Government has the right to:
    (1) Obtain, reproduce, publish or otherwise use the data first 
produced under an award.
    (2) Authorize others to receive, reproduce, publish, or otherwise 
use such data for Federal purposes.
    (d) Title to intangible property and debt instruments acquired under 
an award or subaward (rather than developed or produced under the award 
or subaward) vests upon acquisition in the recipient. The recipient 
shall use that property for the originally-authorized purpose, and the 
recipient shall not encumber the property without approval of the DoD 
Component that made the award. When no longer needed for the originally 
authorized purpose, disposition of the intangible property shall occur 
in accordance with the provisions of Sec. 32.34(g).



Sec. 32.37  Property trust relationship.

    Real property, equipment, intangible property and debt instruments 
that are acquired or improved with Federal funds shall be held in trust 
by the recipient as trustee for the beneficiaries of the project or 
program under which the property was acquired or improved. DoD 
Components may require recipients to record liens or other appropriate 
notices of record to indicate that personal or real property has been 
acquired or improved with Federal funds and that use and disposition 
conditions apply to the property.

[[Page 103]]

                          Procurement Standards



Sec. 32.40  Purpose of procurement standards.

    Sections 32.41 through 32.48 set forth standards for use by 
recipients in establishing procedures for the procurement of supplies 
and other expendable property, equipment, real property and other 
services with Federal funds. These standards are furnished to ensure 
that such materials and services are obtained in an effective manner and 
in compliance with the provisions of applicable Federal statutes and 
executive orders.



Sec. 32.41  Recipient responsibilities.

    The standards contained in this section do not relieve the recipient 
of the contractual responsibilities arising under its contract(s). The 
recipient is the responsible authority, without recourse to the DoD 
Component that made the award, regarding the settlement and satisfaction 
of all contractual and administrative issues arising out of procurements 
entered into in support of an award or other agreement. This includes 
disputes, claims, protests of award, source evaluation or other matters 
of a contractual nature. Matters concerning violation of statute are to 
be referred to such Federal, State or local authority as may have proper 
jurisdiction.



Sec. 32.42  Codes of conduct.

    The recipient shall maintain written standards of conduct governing 
the performance of its employees engaged in the award and administration 
of contracts. No employee, officer, or agent shall participate in the 
selection, award, or administration of a contract supported by Federal 
funds if a real or apparent conflict of interest would be involved. Such 
a conflict would arise when the employee, officer, or agent, any member 
of his or her immediate family, his or her partner, or an organization 
which employs or is about to employ any of the parties indicated herein, 
has a financial or other interest in the firm selected for an award. The 
officers, employees, and agents of the recipient shall neither solicit 
nor accept gratuities, favors, or anything of monetary value from 
contractors, or parties to subagreements. However, recipients may set 
standards for situations in which the financial interest is not 
substantial or the gift is an unsolicited item of nominal value. The 
standards of conduct shall provide for disciplinary actions to be 
applied for violations of such standards by officers, employees, or 
agents of the recipient.



Sec. 32.43  Competition.

    All procurement transactions shall be conducted in a manner to 
provide, to the maximum extent practical, open and free competition. The 
recipient shall be alert to organizational conflicts of interest as well 
as noncompetitive practices among contractors that may restrict or 
eliminate competition or otherwise restrain trade. In order to ensure 
objective contractor performance and eliminate unfair competitive 
advantage, contractors that develop or draft specifications, 
requirements, statements of work, invitations for bids and/or requests 
for proposals shall be excluded from competing for such procurements. 
Awards shall be made to the bidder or offeror whose bid or offer is 
responsive to the solicitation and is most advantageous to the 
recipient, price, quality and other factors considered. Solicitations 
shall clearly set forth all requirements that the bidder or offeror 
shall fulfill in order for the bid or offer to be evaluated by the 
recipient. Any and all bids or offers may be rejected when it is in the 
recipient's interest to do so.



Sec. 32.44  Procurement procedures.

    (a) All recipients shall establish written procurement procedures. 
These procedures shall provide, at a minimum, that:
    (1) Recipients avoid purchasing unnecessary items;
    (2) Where appropriate, an analysis is made of lease and purchase 
alternatives to determine which would be the most economical and 
practical procurement; and
    (3) Solicitations for goods and services provide for all of the 
following:
    (i) A clear and accurate description of the technical requirements 
for the material, product or service to be procured. In competitive 
procurements,

[[Page 104]]

such a description shall not contain features which unduly restrict 
competition.
    (ii) Requirements which the bidder/offeror must fulfill and all 
other factors to be used in evaluating bids or proposals.
    (iii) A description, whenever practicable, of technical requirements 
in terms of functions to be performed or performance required, including 
the range of acceptable characteristics or minimum acceptable standards.
    (iv) The specific features of ``brand name or equal'' descriptions 
that bidders are required to meet when such items are included in the 
solicitation.
    (v) The acceptance, to the extent practicable and economically 
feasible, of products and services dimensioned in the metric system of 
measurement.
    (vi) Preference, to the extent practicable and economically 
feasible, for products and services that conserve natural resources and 
protect the environment and are energy efficient.
    (b) Positive efforts shall be made by recipients to utilize small 
businesses, minority-owned firms, and women's business enterprises, 
whenever possible. Recipients of Federal awards shall take all of the 
following steps to further this goal:
    (1) Ensure that small businesses, minority-owned firms, and women's 
business enterprises are used to the fullest extent practicable.
    (2) Make information on forthcoming opportunities available and 
arrange time frames for purchases and contracts to encourage and 
facilitate participation by small businesses, minority-owned firms, and 
women's business enterprises.
    (3) Consider in the contract process whether firms competing for 
larger contracts intend to subcontract with small businesses, minority-
owned firms, and women's business enterprises.
    (4) Encourage contracting with consortiums of small businesses, 
minority-owned firms and women's business enterprises when a contract is 
too large for one of these firms to handle individually.
    (5) Use the services and assistance, as appropriate, of such 
organizations as the Small Business Administration and the Department of 
Commerce's Minority Business Development Agency in the solicitation and 
utilization of small businesses, minority-owned firms and women's 
business enterprises.
    (c) The type of procuring instruments used (e.g., fixed price 
contracts, cost reimbursable contracts, purchase orders, and incentive 
contracts) shall be determined by the recipient but shall be appropriate 
for the particular procurement and for promoting the best interest of 
the program or project involved. The ``cost-plus-a-percentage-of-cost'' 
or ``percentage of construction cost'' methods of contracting shall not 
be used.
    (d) Contracts shall be made only with responsible contractors who 
possess the potential ability to perform successfully under the terms 
and conditions of the proposed procurement. Consideration shall be given 
to such matters as contractor integrity, record of past performance, 
financial and technical resources or accessibility to other necessary 
resources. In certain circumstances, contracts with certain parties are 
restricted by the DoD implementation, in 32 CFR part 25, of E.O.s 12549 
(3 CFR, 1986 Comp., p. 189) and 12689 (3 CFR, 1989 Comp., p. 235), 
``Debarment and Suspension.''
    (e) Recipients shall, on request, make available for the DoD 
Component's pre-award review, procurement documents such as request for 
proposals or invitations for bids, independent cost estimates, etc., 
when any of the following conditions apply:
    (1) A recipient's procurement procedures or operation fails to 
comply with the procurement standards in this part.
    (2) The procurement is expected to exceed the simplified acquisition 
threshold fixed at 41 U.S.C. 403 (11) (currently $100,000) and is to be 
awarded without competition or only one bid or offer is received in 
response to a solicitation.
    (3) The procurement, which is expected to exceed the simplified 
acquisition threshold, specifies a ``brand name'' product.
    (4) The proposed award over the simplified acquisition threshold is 
to be awarded to other than the apparent low bidder under a sealed bid 
procurement.

[[Page 105]]

    (5) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the amount of the 
simplified acquisition threshold.



Sec. 32.45  Cost and price analysis.

    Some form of cost or price analysis shall be made and documented in 
the procurement files in connection with every procurement action. Price 
analysis may be accomplished in various ways, including the comparison 
of price quotations submitted, market prices and similar indicia, 
together with discounts. Cost analysis is the review and evaluation of 
each element of cost to determine reasonableness, allocability and 
allowability.



Sec. 32.46  Procurement records.

    Procurement records and files for purchases in excess of the 
simplified acquisition threshold shall include the following at a 
minimum:
    (a) Basis for contractor selection;
    (b) Justification for lack of competition when competitive bids or 
offers are not obtained; and
    (c) Basis for award cost or price.



Sec. 32.47  Contract administration.

    A system for contract administration shall be maintained to ensure 
contractor conformance with the terms, conditions and specifications of 
the contract and to ensure adequate and timely follow up of all 
purchases. Recipients shall evaluate contractor performance and 
document, as appropriate, whether contractors have met the terms, 
conditions and specifications of the contract.



Sec. 32.48  Contract provisions.

    The recipient shall include, in addition to provisions to define a 
sound and complete agreement, the following provisions in all contracts. 
The following provisions shall also be applied to subcontracts:
    (a) Contracts in excess of the simplified acquisition threshold 
shall contain contractual provisions or conditions that allow for 
administrative, contractual, or legal remedies in instances in which a 
contractor violates or breaches the contract terms, and provide for such 
remedial actions as may be appropriate.
    (b) All contracts in excess of the simplified acquisition threshold 
shall contain suitable provisions for termination by the recipient, 
including the manner by which termination shall be effected and the 
basis for settlement. In addition, such contracts shall describe 
conditions under which the contract may be terminated for default as 
well as conditions where the contract may be terminated because of 
circumstances beyond the control of the contractor.
    (c) Except as otherwise required by statute, an award that requires 
the contracting (or subcontracting) for construction or facility 
improvements shall provide for the recipient to follow its own 
requirements relating to bid guarantees, performance bonds, and payment 
bonds unless the construction contract or subcontract exceeds $100,000. 
For those contracts or subcontracts exceeding $100,000, the DoD 
Component may accept the bonding policy and requirements of the 
recipient, provided the grants officer has made a determination that the 
Federal Government's interest is adequately protected. If such a 
determination has not been made, the minimum requirements shall be as 
follows:
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder shall, upon acceptance 
of his bid, execute such contractual documents as may be required within 
the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by statute of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.

[[Page 106]]

    (4) Where bonds are required in the situations described in 
Secs. 32.40 through 32.49, the bonds shall be obtained from companies 
holding certificates of authority as acceptable sureties pursuant to 31 
CFR part 223, ``Surety Companies Doing Business with the United 
States.''
    (d) All negotiated contracts (except those for less than the 
simplified acquisition threshold) awarded by recipients shall include a 
provision to the effect that the recipient, the Department of Defense, 
the Comptroller General of the United States, or any of their duly 
authorized representatives, shall have access to any books, documents, 
papers and records of the contractor which are directly pertinent to a 
specific program for the purpose of making audits, examinations, 
excerpts and transcriptions.
    (e) All contracts, including those for amounts less than the 
simplified acquisition threshold, by recipients and their contractors 
shall contain the procurement provisions of Appendix A to this part, as 
applicable.



Sec. 32.49  Resource Conservation and Recovery Act.

    Under the Resource Conservation and Recovery Act (RCRA) (section 
6002, Pub. L. 94-580, 42 U.S.C. 6962), any State agency or agency of a 
political subdivision of a State which is using appropriated Federal 
funds must comply with section 6002. Section 6002 requires that 
preference be given in procurement programs to the purchase of specific 
products containing recycled materials identified in guidelines 
developed by the Environmental Protection Agency (EPA) (40 CFR parts 
247-254). Accordingly, State and local institutions of higher education, 
hospitals, and non-profit organizations that receive direct Federal 
awards or other Federal funds shall give preference in their procurement 
programs funded with Federal funds to the purchase of recycled products 
pursuant to the EPA guidelines.

                           Reports and Records



Sec. 32.50  Purpose of reports and records.

    Sections 32.51 through 32.53 set forth the procedures for monitoring 
and reporting on the recipient's financial and program performance and 
the necessary standard reporting forms. They also set forth record 
retention requirements.



Sec. 32.51  Monitoring and reporting program performance.

    (a) Recipients are responsible for managing and monitoring each 
project, program, subaward, function or activity supported by the award. 
Recipients shall monitor subawards to ensure subrecipients have met the 
audit requirements as delineated in Sec. 32.26.
    (b) The award terms and conditions shall prescribe the frequency 
with which the performance reports shall be submitted. Except as 
provided in paragraph (f) of this section, performance reports shall not 
be required more frequently than quarterly or less frequently than 
annually. Annual reports shall be due 90 calendar days after the award 
year; quarterly or semi-annual reports shall be due 30 calendar days 
after the reporting period. DoD Components may require annual reports 
before the anniversary dates of multiple year awards in lieu of these 
requirements. The final performance reports are due 90 calendar days 
after the expiration or termination of the award.
    (c) If inappropriate, a final technical or performance report shall 
not be required after completion of the project.
    (d) When required, performance reports shall generally contain, for 
each award, brief information on each of the following:
    (1) A comparison of actual accomplishments with the goals and 
objectives established for the period, the findings of the investigator, 
or both. Whenever appropriate and the output of programs or projects can 
be readily quantified, such quantitative data should be related to cost 
data for computation of unit costs. However, unit costs are generally 
inappropriate for research (see Sec. 32.21 (a) and (b)(4)).
    (2) Reasons why established goals were not met, if appropriate.
    (3) Other pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.

[[Page 107]]

    (e) Recipients shall not be required to submit more than the 
original and two copies of performance reports.
    (f) Recipients shall immediately notify the grants officer of 
developments that have a significant impact on the award-supported 
activities. Also, notification shall be given in the case of problems, 
delays, or adverse conditions which materially impair the ability to 
meet the objectives of the award. This notification shall include a 
statement of the action taken or contemplated, and any assistance needed 
to resolve the situation.
    (g) DoD Components' representatives may make site visits, as needed.
    (h) DoD Components shall comply with applicable clearance 
requirements of 5 CFR part 1320 when requesting performance data from 
recipients.



Sec. 32.52  Financial reporting.

    (a) The following forms or such other forms as may be approved by 
OMB are authorized for obtaining financial information from recipients:
    (1) SF-269 \9\ or SF-269A,\10\ Financial Status Report. (i) DoD 
Components shall require recipients to use the SF-269 or SF-269A to 
report the status of funds for all nonconstruction projects or programs. 
A DoD Component may, however, have the option of not requiring the SF-
269 or SF-269A when the SF-270, Request for Advance or Reimbursement, or 
SF-272,\11\ Report of Federal Cash Transactions, is determined to 
provide adequate information to meet agency needs, except that a final 
SF-269 or SF-269A shall be required at the completion of the project 
when the SF-270 is used only for advances.
---------------------------------------------------------------------------

    \9\ See footnote 2 to Sec. 32.12(a).
    \10\ See footnote 2 to Sec. 32.12(a).
    \11\ See footnote 2 to Sec. 32.12(a).
---------------------------------------------------------------------------

    (ii) The DoD Component shall prescribe whether the report shall be 
on a cash or accrual basis. If the award requires accrual information 
and the recipient's accounting records are not normally kept on the 
accrual basis, the recipient shall not be required to convert its 
accounting system, but shall develop such accrual information through 
best estimates based on an analysis of the documentation on hand.
    (iii) The DoD Component shall determine the frequency of the 
Financial Status Report for each project or program, considering the 
size and complexity of the particular project or program. However, the 
report shall not be required more frequently than quarterly or less 
frequently than annually. A final report shall be required at the 
completion of the award.
    (iv) The DoD Component shall require recipients to submit the SF-269 
or SF-269A (an original and no more than two copies) no later than 30 
calendar days after the end of each specified reporting period for 
quarterly and semi-annual reports, and 90 calendar days for annual and 
final reports. Extensions of reporting due dates may be approved by the 
grants officer upon request of the recipient.
    (2) SF-272, Report of Federal Cash Transactions. (i) When funds are 
advanced to recipients the DoD Component shall require each recipient to 
submit the SF-272 and, when necessary, its continuation sheet, SF-
272a.\12\ The grants officer shall use this report to monitor cash 
advanced to recipients and to obtain disbursement information for each 
award to the recipients.
---------------------------------------------------------------------------

    \12\ See footnote 2 to Sec. 32.12(a).
---------------------------------------------------------------------------

    (ii) DoD Components may require forecasts of Federal cash 
requirements in the ``Remarks'' section of the report.
    (iii) When practical and deemed necessary, DoD Components may 
require recipients to report in the ``Remarks'' section the amount of 
cash advances received in excess of three working days. Recipients shall 
provide short narrative explanations of actions taken to reduce the 
excess balances.
    (iv) Recipients shall be required to submit not more than the 
original and two copies of the SF-272 15 calendar days following the end 
of each quarter. DoD Components may require a monthly report from those 
recipients receiving advances totaling $1 million or more per year.
    (v) DoD Components may waive the requirement for submission of the 
SF-272 for any one of the following reasons:

[[Page 108]]

    (A) When monthly advances do not exceed $25,000 per recipient, 
provided that such advances are monitored through other forms contained 
in this section;
    (B) If, in the grants officer's opinion, the recipient's accounting 
controls are adequate to minimize excessive Federal advances; or
    (C) When electronic payment mechanisms or SF-270 forms provide 
adequate data.
    (b) When the DoD Component needs additional information or more 
frequent reports, the following shall be observed:
    (1) When additional information is needed to comply with legislative 
requirements, grants officers shall issue instructions to require 
recipients to submit such information under the ``Remarks'' section of 
the reports.
    (2) When a grants officer, after consultation with the Federal 
agency assigned cognizance for a recipient's audit and audit resolution, 
determines that the recipient's accounting system does not meet the 
standards in Sec. 32.21, additional pertinent information to further 
monitor awards may be obtained upon written notice to the recipient 
until such time as the system is brought up to standard. The grants 
officer, in obtaining this information, shall comply with applicable 
report clearance requirements of 5 CFR part 1320.
    (3) Grants officers are encouraged to shade out any line item on any 
report if not necessary.
    (4) DoD Components are encouraged to accept the identical 
information from the recipients in machine readable format or computer 
printouts or electronic outputs in lieu of prescribed formats.
    (5) DoD Components may provide computer or electronic outputs to 
recipients when it expedites or contributes to the accuracy of 
reporting.



Sec. 32.53  Retention and access requirements for records.

    (a) This section sets forth requirements for record retention and 
access to records for awards to recipients. DoD Components shall not 
impose any other record retention or access requirements upon 
recipients.
    (b) Financial records, supporting documents, statistical records, 
and all other records pertinent to an award shall be retained for a 
period of three years from the date of submission of the final 
expenditure report. The only exceptions are the following:
    (1) If any litigation, claim, or audit is started before the 
expiration of the 3-year period, the records shall be retained until all 
litigation, claims or audit findings involving the records have been 
resolved and final action taken.
    (2) Records for real property and equipment acquired with Federal 
funds shall be retained for 3 years after final disposition.
    (3) When records are transferred to or maintained by the DoD 
Component that made the award, the 3-year retention requirement is not 
applicable to the recipient.
    (4) Indirect cost rate proposals, cost allocations plans, and 
related records, for which retention requirements are specified in 
paragraph (g) of this section.
    (c) Copies of original records may be substituted for the original 
records if authorized by the grants officer.
    (d) The grants officer shall request that recipients transfer 
certain records to DoD Component custody when he or she determines that 
the records possess long term retention value. However, in order to 
avoid duplicate recordkeeping, a grants officer may make arrangements 
for recipients to retain any records that are continuously needed for 
joint use.
    (e) DoD Components, the Inspector General, Comptroller General of 
the United States, or any of their duly authorized representatives, have 
the right of timely and unrestricted access to any books, documents, 
papers, or other records of recipients that are pertinent to the awards, 
in order to make audits, examinations, excerpts, transcripts and copies 
of such documents. This right also includes timely and reasonable access 
to a recipient's personnel for the purpose of interview and discussion 
related to such documents. The rights of access in this paragraph are 
not limited to the required retention period, but shall last as long as 
records are retained.

[[Page 109]]

    (f) Unless required by statute, no DoD Component shall place 
restrictions on recipients that limit public access to the records of 
recipients that are pertinent to an award, except when the DoD Component 
can demonstrate that such records shall be kept confidential and would 
have been exempted from disclosure pursuant to the Freedom of 
Information Act (5 U.S.C. 552) if the records had belonged to the DoD 
Component making the award.
    (g) Indirect cost rate proposals, cost allocations plans, etc. 
Paragraphs (g)(1) and (g)(2) of this section apply to the following 
types of documents, and their supporting records: indirect cost rate 
computations or proposals, cost allocation plans, and any similar 
accounting computations of the rate at which a particular group of costs 
is chargeable (such as computer usage chargeback rates or composite 
fringe benefit rates).
    (1) If submitted for negotiation. If the recipient submits an 
indirect-cost proposal, plan, or other computation to the Federal agency 
responsible for negotiating the recipient's indirect cost rate, as the 
basis for negotiation of the rate, or the subrecipient submits such a 
proposal, plan, or computation to the recipient, then the 3-year 
retention period for its supporting records starts on the date of such 
submission.
    (2) If not submitted for negotiation. If the recipient is not 
required to submit to the cognizant Federal agency or the subrecipient 
is not required to submit to the recipient the proposal, plan, or other 
computation for negotiation purposes, then the 3-year retention period 
for the proposal, plan, or other computation and its supporting records 
starts at the end of the fiscal year (or other accounting period) 
covered by the proposal, plan, or other computation.
    (h) If the information described in this section is maintained on a 
computer, recipients shall retain the computer data on a reliable medium 
for the time periods prescribed. Recipients may transfer computer data 
in machine readable form from one reliable computer medium to another. 
Recipients' computer data retention and transfer procedures shall 
maintain the integrity, reliability, and security of the original 
computer data. Recipients shall also maintain an audit trail describing 
the data transfer. For the record retention time periods prescribed in 
this section, recipients shall not destroy, discard, delete, or write 
over such computer data.

                       Termination and Enforcement



Sec. 32.60  Purpose of termination and enforcement.

    Sections 32.61 and 32.62 set forth uniform suspension, termination 
and enforcement procedures.



Sec. 32.61  Termination.

    (a) Awards may be terminated in whole or in part only as follows:
    (1) By the grants officer, if a recipient materially fails to comply 
with the terms and conditions of an award;
    (2) By the grants officer with the consent of the recipient, in 
which case the two parties shall agree upon the termination conditions, 
including the effective date and, in the case of partial termination, 
the portion to be terminated; or
    (3) By the recipient upon sending to the grants officer written 
notification setting forth the reasons for such termination, the 
effective date, and, in the case of partial termination, the portion to 
be terminated. The recipient must provide such notice at least 30 
calendar days prior to the effective date of the termination. However, 
if the grants officer determines in the case of partial termination that 
the reduced or modified portion of the award will not accomplish the 
purposes for which the award was made, he or she may terminate the award 
in its entirety.
    (b) If costs are allowed under an award, the responsibilities of the 
recipient referred to in Sec. 32.71, including those for property 
management as applicable, shall be considered in the termination of the 
award, and provision shall be made for continuing responsibilities of 
the recipient after termination, as appropriate.



Sec. 32.62  Enforcement.

    (a) Remedies for noncompliance. If a recipient materially fails to 
comply with the terms and conditions of an award,

[[Page 110]]

whether stated in a Federal statute, regulation, assurance, application, 
or notice of award, the grants officer may, in addition to imposing any 
of the special conditions outlined in Sec. 32.14, take one or more of 
the following actions, as appropriate in the circumstances:
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the recipient or more severe enforcement action by the 
grants officer and DoD Component.
    (2) Disallow (that is, deny both use of funds and any applicable 
matching credit for) all or part of the cost of the activity or action 
not in compliance.
    (3) Wholly or partly suspend or terminate the current award.
    (4) Withhold further awards for the project or program.
    (5) Take other remedies that may be legally available.
    (b) Hearings and appeals. In taking an enforcement action, the DoD 
Component shall provide the recipient an opportunity for hearing, 
appeal, or other administrative proceeding to which the recipient is 
entitled under any statute or regulation applicable to the action 
involved. Award terms or conditions will incorporate the procedures of 
32 CFR 22.815 for processing recipient claims and disputes and for 
deciding appeals of grants officers' decisions.
    (c) Effects of suspension and termination. Costs of a recipient 
resulting from obligations incurred by the recipient during a suspension 
or after termination of an award are not allowable unless the grants 
officer expressly authorizes them in the notice of suspension or 
termination or subsequently. Other recipient costs during suspension or 
after termination which are necessary and not reasonably avoidable are 
allowable if the costs:
    (1) Result from obligations which were properly incurred by the 
recipient before the effective date of suspension or termination, are 
not in anticipation of it, and in the case of a termination, are 
noncancellable; and
    (2) Would be allowable if the award were not suspended or expired 
normally at the end of the funding period in which the termination takes 
effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude a recipient from being subject to debarment 
and suspension under 32 CFR part 25.



                 Subpart D--After-the-Award Requirements



Sec. 32.70  Purpose.

    Sections 32.71 through 32.73 contain closeout procedures and other 
procedures for subsequent disallowances and adjustments.



Sec. 32.71  Closeout procedures.

    (a) Recipients shall submit, within 90 calendar days after the date 
of completion of the award, all financial, performance, and other 
reports required by the terms and conditions of the award. The grants 
officer may approve extensions when requested by the recipient.
    (b) Unless the grants officer authorizes an extension, a recipient 
shall liquidate all obligations incurred under the award not later than 
90 calendar days after the funding period or the date of completion as 
specified in the terms and conditions of the award or in agency 
implementing instructions.
    (c) The responsible grants officer and payment office shall expedite 
completion of steps needed to close out awards and make prompt, final 
payments to a recipient for allowable reimbursable costs under the award 
being closed out.
    (d) The recipient shall promptly refund any balances of unobligated 
cash that the DoD Component has advanced or paid and that is not 
authorized to be retained by the recipient for use in other projects. 
OMB Circular A-129\13\ governs unreturned amounts that become delinquent 
debts (see 32 CFR 22.820).
---------------------------------------------------------------------------

    \13\ See footnote 1 to Sec. 32.1(a).
---------------------------------------------------------------------------

    (e) When authorized by the terms and conditions of the award, the 
grants officer shall make a settlement for any upward or downward 
adjustments to the Federal share of costs after closeout reports are 
received.
    (f) The recipient shall account for any real and personal property 
acquired with Federal funds or received from the Federal Government in 
accordance with Secs. 32.31 through 32.37.

[[Page 111]]

    (g) In the event a final audit has not been performed prior to the 
closeout of an award, the DoD Component shall retain the right to 
recover an appropriate amount after fully considering the 
recommendations on disallowed costs resulting from the final audit.



Sec. 32.72  Subsequent adjustments and continuing responsibilities.

    (a) The closeout of an award does not affect any of the following:
    (1) The right of the Department of Defense to disallow costs and 
recover funds on the basis of a later audit or other review.
    (2) The obligation of the recipient to return any funds due as a 
result of later refunds, corrections, or other transactions.
    (3) Audit requirements in Sec. 32.26.
    (4) Property management requirements in Secs. 32.31 through 32.37.
    (5) Records retention as required in Sec. 32.53.
    (b) After closeout of an award, a relationship created under an 
award may be modified or ended in whole or in part with the consent of 
the grants officer and the recipient, provided the responsibilities of 
the recipient referred to in Sec. 32.73(a), including those for property 
management as applicable, are considered and provisions made for 
continuing responsibilities of the recipient, as appropriate.



Sec. 32.73  Collection of amounts due.

    (a) Any funds paid to a recipient in excess of the amount to which 
the recipient is finally determined to be entitled under the terms and 
conditions of the award constitute a debt to the Federal Government.
    (b) OMB Circular A-110 informs each Federal agency that:
    (1) If a debt is not paid within a reasonable period after the 
demand for payment, the Federal agency may reduce the debt by:
    (i) Making administrative offset against other requests for 
reimbursement.
    (ii) Withholding advance payments otherwise due to the recipient.
    (iii) Taking other action permitted by statute.
    (2) Except as otherwise provided by law, the Federal awarding agency 
shall charge interest on an overdue debt in accordance with 4 CFR 
Chapter II, ``Federal Claims Collection Standards.''
    (c) DoD grants officers shall follow the procedures in 32 CFR 22.820 
for issuing demands for payment and transferring debts to DoD payment 
offices for collection. Recipients will be informed about pertinent 
procedures and timeframes through the written notices of grants 
officers' decisions and demands for payment.

               Appendix A to Part 32--Contract Provisions

    All contracts awarded by a recipient, including those for amounts 
less than the simplified acquisition threshold, shall contain the 
following provisions as applicable:
    1. Equal Employment Opportunity--All contracts shall contain a 
provision requiring compliance with E.O. 11246 (3 CFR, 1964-1965 Comp., 
p. 339), ``Equal Employment Opportunity,'' as amended by E.O. 11375 (3 
CFR, 1966-1970 Comp., p. 684), ``Amending Executive Order 11246 Relating 
to Equal Employment Opportunity,'' and as supplemented by regulations at 
41 CFR ch. 60, ``Office of Federal Contract Compliance Programs, Equal 
Employment Opportunity, Department of Labor.''
    2. Copeland ``Anti-Kickback'' Act (18 U.S.C. 874 and 40 U.S.C. 
276c)--All contracts and subawards in excess of $2000 for construction 
or repair awarded by recipients and subrecipients shall include a 
provision for compliance with the Copeland ``Anti-Kickback'' Act (18 
U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR 
part 3, ``Contractors and Subcontractors on Public Building or Public 
Work Financed in Whole or in Part by Loans or Grants from the United 
States''). The Act provides that each contractor or subrecipient shall 
be prohibited from inducing, by any means, any person employed in the 
construction, completion, or repair of public work, to give up any part 
of the compensation to which he is otherwise entitled. The recipient 
shall report all suspected or reported violations to the responsible DoD 
Component.
    3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7)--This Act 
applies to procurements under awards only when the Federal program 
legislation specifically makes it apply (i.e., Davis-Bacon does not by 
itself apply to procurements under awards). In cases where another 
statute does make the Davis-Bacon Act apply, all construction contracts 
awarded by the recipients and subrecipients of more than $2,000 shall 
include a provision for compliance with the Davis-

[[Page 112]]

Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by Department of 
Labor regulations (29 CFR part 5, ``Labor Standards Provisions 
Applicable to Contracts Governing Federally Financed and Assisted 
Construction''). Under this Act, contractors shall be required to pay 
wages to laborers and mechanics at a rate not less than the minimum 
wages specified in a wage determination made by the Secretary of Labor. 
In addition, contractors shall be required to pay wages not less than 
once a week. The recipient shall place a copy of the current prevailing 
wage determination issued by the Department of Labor in each 
solicitation and the award of a contract shall be conditioned upon the 
acceptance of the wage determination. The recipient shall report all 
suspected or reported violations to the Federal awarding agency.
    4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-
333)--Where applicable, all contracts awarded by recipients in excess of 
$100,000 for construction or other purposes that involve the employment 
of mechanics or laborers shall include a provision for compliance with 
sections 102 and 107 of the Contract Work Hours and Safety Standards Act 
(40 U.S.C. 327-333), as supplemented by Department of Labor regulations 
(29 CFR part 5). Under section 102 of the Act, each contractor shall be 
required to compute the wages of every mechanic and laborer on the basis 
of a standard work week of 40 hours. Work in excess of the standard work 
week is permissible provided that the worker is compensated at a rate of 
not less than 1\1/2\ times the basic rate of pay for all hours worked in 
excess of 40 hours in the work week. Section 107 of the Act is 
applicable to construction work and provides that no laborer or mechanic 
shall be required to work in surroundings or under working conditions 
which are unsanitary, hazardous or dangerous. These requirements do not 
apply to the purchases of supplies or materials or articles ordinarily 
available on the open market, or contracts for transportation or 
transmission of intelligence.
    5. Rights to Inventions Made Under a Contract, Grant or Cooperative 
Agreement--Contracts, grants, or cooperative agreements for the 
performance of experimental, developmental, or research work shall 
provide for the rights of the Federal Government and the recipient in 
any resulting invention in accordance with 37 CFR part 401, ``Rights to 
Inventions Made by Nonprofit Organizations and Small Business Firms 
Under Government Grants, Contracts and Cooperative Agreements.''
    6. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water 
Pollution Control Act (33 U.S.C. 1251 et seq.), as amended--Contracts 
and subawards of amounts in excess of $100,000 shall contain a provision 
that requires the recipient to agree to comply with all applicable 
standards, orders or regulations issued pursuant to the Clean Air Act 
(42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as 
amended (33 U.S.C. 1251 et seq.). Violations shall be reported to the 
responsible DoD Component and the Regional Office of the Environmental 
Protection Agency (EPA).
    7. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)--Contractors who 
apply or bid for an award of $100,000 or more shall file the required 
certification. Each tier certifies to the tier above that it will not 
and has not used Federal appropriated funds to pay any person or 
organization for influencing or attempting to influence an officer or 
employee of any agency, a member of Congress, officer or employee of 
Congress, or an employee of a member of Congress in connection with 
obtaining any Federal contract, grant or any other award covered by 31 
U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal 
funds that takes place in connection with obtaining any Federal award. 
Such disclosures are forwarded from tier to tier up to the recipient.
    8. Debarment and Suspension (E.O.s 12549 and 12689)--Contract awards 
that exceed the simplified acquisition threshold and certain other 
contract awards shall not be made to parties listed on the General 
Services Administration's Lists of Parties Excluded from Federal 
Procurement and Nonprocurement Programs in accordance with E.O.s 12549 
(3 CFR, 1986 Comp., p. 189) and 12689 (3 CFR, 1989 Comp., p. 235), 
``Debarment and Suspension.'' This list contains the names of parties 
debarred, suspended, or otherwise excluded by agencies, and contractors 
declared ineligible under statutory or regulatory authority other than 
E.O. 12549. Contractors with awards that exceed the simplified 
acquisition threshold shall provide the required certification regarding 
its exclusion status and that of its principals.



PART 33--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOPERATIVE AGREEMENTS TO STATE AND LOCAL GOVERNMENTS--Table of Contents




                           Subpart A--General

Sec.
33.1  Purpose and scope of this part.
33.2  Scope of subpart.
33.3  Definitions.
33.4  Applicability.
33.5  Effect on other issuances.
33.6  Additions and exceptions.

                    Subpart B--Pre-Award Requirements

33.10  Forms for applying for grants.
33.11  State plans.

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33.12  Special grant or subgrant conditions for ``high-risk'' grantees.

                   Subpart C--Post-Award Requirements

                        Financial Administration

33.20  Standards for financial management systems.
33.21  Payment.
33.22  Allowable costs.
33.23  Period of availability of funds.
33.24  Matching or cost sharing.
33.25  Program income.
33.26  Non-Federal audit.

                    Changes, Property, and Subawards

33.30  Changes.
33.31  Real property.
33.32  Equipment.
33.33  Supplies.
33.34  Copyrights.
33.35  Subawards to debarred and suspended parties.
33.36  Procurement.
33.37  Subgrants.

               Reports, Records Retention, and Enforcement

33.40  Monitoring and reporting program performance.
33.41  Financial reporting.
33.42  Retention and access requirements for records.
33.43  Enforcement.
33.44  Termination for convenience.

                 Subpart D--After-the-Grant Requirements

33.50  Closeout.
33.51  Later disallowances and adjustments.
33.52  Collections of amounts due.

                   Subpart E--Entitlements [Reserved]

    Authority: 5 U.S.C. 301; 10 U.S.C. 113.

    Source: 53 FR 8070, 8087, Mar. 11, 1988. Redesignated at 57 FR 6200, 
Feb. 21, 1992.



                           Subpart A--General



Sec. 33.1  Purpose and scope of this part.

    This part establishes uniform administrative rules for Federal 
grants and cooperative agreements and subawards to State, local and 
Indian tribal governments.



Sec. 33.2  Scope of subpart.

    This subpart contains general rules pertaining to this part and 
procedures for control of exceptions from this part.



Sec. 33.3  Definitions.

    As used in this part:
    Accrued expenditures mean the charges incurred by the grantee during 
a given period requiring the provision of funds for:
    (1) Goods and other tangible property received;
    (2) Services performed by employees, contractors, subgrantees, 
subcontractors, and other payees; and
    (3) Other amounts becoming owed under programs for which no current 
services or performance is required, such as annuities, insurance 
claims, and other benefit payments.
    Accrued income means the sum of:
    (1) Earnings during a given period from services performed by the 
grantee and goods and other tangible property delivered to purchasers, 
and
    (2) Amounts becoming owed to the grantee for which no current 
services or performance is required by the grantee.
    Acquisition cost of an item of purchased equipment means the net 
invoice unit price of the property including the cost of modifications, 
attachments, accessories, or auxiliary apparatus necessary to make the 
property usable for the purpose for which it was acquired. Other charges 
such as the cost of installation, transportation, taxes, duty or 
protective in-transit insurance, shall be included or excluded from the 
unit acquisition cost in accordance with the grantee's regular 
accounting practices.
    Administrative requirements mean those matters common to grants in 
general, such as financial management, kinds and frequency of reports, 
and retention of records. These are distinguished from ``programmatic'' 
requirements, which concern matters that can be treated only on a 
program-by-program or grant-by-grant basis, such as kinds of activities 
that can be supported by grants under a particular program.
    Awarding agency means:
    (1) With respect to a grant, the Federal agency, and
    (2) With respect to a subgrant, the party that awarded the subgrant.
    Cash contributions means the grantee's cash outlay, including the 
outlay of money contributed to the grantee or

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subgrantee by other public agencies and institutions, and private 
organizations and individuals. When authorized by Federal legislation, 
Federal funds received from other assistance agreements may be 
considered as grantee or subgrantee cash contributions.
    Contract means (except as used in the definitions for ``grant'' and 
``subgrant'' in this section and except where qualified by ``Federal'') 
a procurement contract under a grant or subgrant, and means a 
procurement subcontract under a contract.
    Cost sharing or matching means the value of the third party in-kind 
contributions and the portion of the costs of a federally assisted 
project or program not borne by the Federal Government.
    Cost-type contract means a contract or subcontract under a grant in 
which the contractor or subcontractor is paid on the basis of the costs 
it incurs, with or without a fee.
    Equipment means tangible, nonexpendable, personal property having a 
useful life of more than one year and an acquisition cost of $5,000 or 
more per unit. A grantee may use its own definition of equipment 
provided that such definition would at least include all equipment 
defined above.
    Expenditure report means:
    (1) For nonconstruction grants, the SF-269 ``Financial Status 
Report'' (or other equivalent report);
    (2) For construction grants, the SF-271 ``Outlay Report and Request 
for Reimbursement'' (or other equivalent report).
    Federally recognized Indian tribal government means the governing 
body or a governmental agency of any Indian tribe, band, nation, or 
other organized group or community (including any Native village as 
defined in section 3 of the Alaska Native Claims Settlement Act, 85 
Stat. 688) certified by the Secretary of the Interior as eligible for 
the special programs and services provided by him through the Bureau of 
Indian Affairs.
    Government means a State or local government or a federally 
recognized Indian tribal government.
    Grant means an award of financial assistance, including cooperative 
agreements, in the form of money, or property in lieu of money, by the 
Federal Government to an eligible grantee. The term does not include 
technical assistance which provides services instead of money, or other 
assistance in the form of revenue sharing, loans, loan guarantees, 
interest subsidies, insurance, or direct appropriations. Also, the term 
does not include assistance, such as a fellowship or other lump sum 
award, which the grantee is not required to account for.
    Grantee means the government to which a grant is awarded and which 
is accountable for the use of the funds provided. The grantee is the 
entire legal entity even if only a particular component of the entity is 
designated in the grant award document.
    Local government means a county, municipality, city, town, township, 
local public authority (including any public and Indian housing agency 
under the United States Housing Act of 1937) school district, special 
district, intrastate district, council of governments (whether or not 
incorporated as a nonprofit corporation under State law), any other 
regional or interstate government entity, or any agency or 
instrumentality of a local government.
    Obligations means the amounts of orders placed, contracts and 
subgrants awarded, goods and services received, and similar transactions 
during a given period that will require payment by the grantee during 
the same or a future period.
    OMB means the United States Office of Management and Budget.
    Outlays (expenditures) mean charges made to the project or program. 
They may be reported on a cash or accrual basis. For reports prepared on 
a cash basis, outlays are the sum of actual cash disbursement for direct 
charges for goods and services, the amount of indirect expense incurred, 
the value of in-kind contributions applied, and the amount of cash 
advances and payments made to contractors and subgrantees. For reports 
prepared on an accrued expenditure basis, outlays are the sum of actual 
cash disbursements, the amount of indirect expense incurred, the value 
of inkind contributions applied, and the new increase (or decrease) in 
the amounts owed by the grantee for goods

[[Page 115]]

and other property received, for services performed by employees, 
contractors, subgrantees, subcontractors, and other payees, and other 
amounts becoming owed under programs for which no current services or 
performance are required, such as annuities, insurance claims, and other 
benefit payments.
    Percentage of completion method refers to a system under which 
payments are made for construction work according to the percentage of 
completion of the work, rather than to the grantee's cost incurred.
    Prior approval means documentation evidencing consent prior to 
incurring specific cost.
    Real property means land, including land improvements, structures 
and appurtenances thereto, excluding movable machinery and equipment.
    Share, when referring to the awarding agency's portion of real 
property, equipment or supplies, means the same percentage as the 
awarding agency's portion of the acquiring party's total costs under the 
grant to which the acquisition costs under the grant to which the 
acquisition cost of the property was charged. Only costs are to be 
counted--not the value of third-party in-kind contributions.
    State means any of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any agency or instrumentality of a 
State exclusive of local governments. The term does not include any 
public and Indian housing agency under United States Housing Act of 
1937.
    Subgrant means an award of financial assistance in the form of 
money, or property in lieu of money, made under a grant by a grantee to 
an eligible subgrantee. The term includes financial assistance when 
provided by contractual legal agreement, but does not include 
procurement purchases, nor does it include any form of assistance which 
is excluded from the definition of ``grant'' in this part.
    Subgrantee means the government or other legal entity to which a 
subgrant is awarded and which is accountable to the grantee for the use 
of the funds provided.
    Supplies means all tangible personal property other than 
``equipment'' as defined in this part.
    Suspension means depending on the context, either:
    (1) Temporary withdrawal of the authority to obligate grant funds 
pending corrective action by the grantee or subgrantee or a decision to 
terminate the grant, or
    (2) An action taken by a suspending official in accordance with 
agency regulations implementing E.O. 12549 to immediately exclude a 
person from participating in grant transactions for a period, pending 
completion of an investigation and such legal or debarment proceedings 
as may ensue.
    Termination means permanent withdrawal of the authority to obligate 
previously-awarded grant funds before that authority would otherwise 
expire. It also means the voluntary relinquishment of that authority by 
the grantee or subgrantee. ``Termination'' does not include:
    (1) Withdrawal of funds awarded on the basis of the grantee's 
underestimate of the unobligated balance in a prior period;
    (2) Withdrawal of the unobligated balance as of the expiration of a 
grant;
    (3) Refusal to extend a grant or award additional funds, to make a 
competing or noncompeting continuation, renewal, extension, or 
supplemental award; or
    (4) Voiding of a grant upon determination that the award was 
obtained fraudulently, or was otherwise illegal or invalid from 
inception.
    Terms of a grant or subgrant mean all requirements of the grant or 
subgrant, whether in statute, regulations, or the award document.
    Third party in-kind contributions mean property or services which 
benefit a federally assisted project or program and which are 
contributed by non-Federal third parties without charge to the grantee, 
or a cost-type contractor under the grant agreement.
    Unliquidated obligations for reports prepared on a cash basis mean 
the amount of obligations incurred by the grantee that has not been 
paid. For reports prepared on an accrued expenditure basis, they 
represent the amount of obligations incurred by the grantee

[[Page 116]]

for which an outlay has not been recorded.
    Unobligated balance means the portion of the funds authorized by the 
Federal agency that has not been obligated by the grantee and is 
determined by deducting the cumulative obligations from the cumulative 
funds authorized.



Sec. 33.4  Applicability.

    (a) General. Subparts A through D of this part apply to all grants 
and subgrants to governments, except where inconsistent with Federal 
statutes or with regulations authorized in accordance with the exception 
provision of Sec. 33.6, or:
    (1) Grants and subgrants to State and local institutions of higher 
education or State and local hospitals.
    (2) The block grants authorized by the Omnibus Budget Reconciliation 
Act of 1981 (Community Services; Preventive Health and Health Services; 
Alcohol, Drug Abuse, and Mental Health Services; Maternal and Child 
Health Services; Social Services; Low-Income Home Energy Assistance; 
States' Program of Community Development Block Grants for Small Cities; 
and Elementary and Secondary Education other than programs administered 
by the Secretary of Education under title V, subtitle D, chapter 2, 
section 583--the Secretary's discretionary grant program) and titles I-
III of the Job Training Partnership Act of 1982 and under the Public 
Health Services Act (section 1921), Alcohol and Drug Abuse Treatment and 
Rehabilitation Block Grant and part C of title V, Mental Health Service 
for the Homeless Block Grant).
    (3) Entitlement grants to carry out the following programs of the 
Social Security Act:
    (i) Aid to Needy Families with Dependent Children (title IV-A of the 
Act, not including the Work Incentive Program (WIN) authorized by 
section 402(a)19(G); HHS grants for WIN are subject to this part);
    (ii) Child Support Enforcement and Establishment of Paternity (title 
IV-D of the Act);
    (iii) Foster Care and Adoption Assistance (title IV-E of the Act);
    (iv) Aid to the Aged, Blind, and Disabled (titles I, X, XIV, and 
XVI-AABD of the Act); and
    (v) Medical Assistance (Medicaid) (title XIX of the Act) not 
including the State Medicaid Fraud Control program authorized by section 
1903(a)(6)(B).
    (4) Entitlement grants under the following programs of The National 
School Lunch Act:
    (i) School Lunch (section 4 of the Act),
    (ii) Commodity Assistance (section 6 of the Act),
    (iii) Special Meal Assistance (section 11 of the Act),
    (iv) Summer Food Service for Children (section 13 of the Act), and
    (v) Child Care Food Program (section 17 of the Act).
    (5) Entitlement grants under the following programs of The Child 
Nutrition Act of 1966:
    (i) Special Milk (section 3 of the Act), and
    (ii) School Breakfast (section 4 of the Act).
    (6) Entitlement grants for State Administrative expenses under The 
Food Stamp Act of 1977 (section 16 of the Act).
    (7) A grant for an experimental, pilot, or demonstration project 
that is also supported by a grant listed in paragraph (a)(3) of this 
section;
    (8) Grant funds awarded under subsection 412(e) of the Immigration 
and Nationality Act (8 U.S.C. 1522(e)) and subsection 501(a) of the 
Refugee Education Assistance Act of 1980 (Pub. L. 96-422, 94 Stat. 
1809), for cash assistance, medical assistance, and supplemental 
security income benefits to refugees and entrants and the administrative 
costs of providing the assistance and benefits;
    (9) Grants to local education agencies under 20 U.S.C. 236 through 
241-1(a), and 242 through 244 (portions of the Impact Aid program), 
except for 20 U.S.C. 238(d)(2)(c) and 240(f) (Entitlement Increase for 
Handicapped Children); and
    (10) Payments under the Veterans Administration's State Home Per 
Diem Program (38 U.S.C. 641(a)).

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    (b) Entitlement programs. Entitlement programs enumerated above in 
Sec. 33.4(a) (3) through (8) are subject to subpart E.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 33.5  Effect on other issuances.

    All other grants administration provisions of codified program 
regulations, program manuals, handbooks and other nonregulatory 
materials which are inconsistent with this part are superseded, except 
to the extent they are required by statute, or authorized in accordance 
with the exception provision in Sec. 33.6.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 33.6  Additions and exceptions.

    (a) For classes of grants and grantees subject to this part, Federal 
agencies may not impose additional administrative requirements except in 
codified regulations published in the Federal Register.
    (b) Exceptions for classes of grants or grantees may be authorized 
only by OMB.
    (c) Exceptions on a case-by-case basis and for subgrantees may be 
authorized by the affected Federal agencies.



                    Subpart B--Pre-Award Requirements



Sec. 33.10  Forms for applying for grants.

    (a) Scope. (1) This section prescribes forms and instructions to be 
used by governmental organizations (except hospitals and institutions of 
higher education operated by a government) in applying for grants. This 
section is not applicable, however, to formula grant programs which do 
not require applicants to apply for funds on a project basis.
    (2) This section applies only to applications to Federal agencies 
for grants, and is not required to be applied by grantees in dealing 
with applicants for subgrants. However, grantees are encouraged to avoid 
more detailed or burdensome application requirements for subgrants.
    (b) Authorized forms and instructions for governmental 
organizations. (1) In applying for grants, applicants shall only use 
standard application forms or those prescribed by the granting agency 
with the approval of OMB under the Paperwork Reduction Act of 1980.
    (2) Applicants are not required to submit more than the original and 
two copies of preapplications or applications.
    (3) Applicants must follow all applicable instructions that bear OMB 
clearance numbers. Federal agencies may specify and describe the 
programs, functions, or activities that will be used to plan, budget, 
and evaluate the work under a grant. Other supplementary instructions 
may be issued only with the approval of OMB to the extent required under 
the Paperwork Reduction Act of 1980. For any standard form, except the 
SF-424 facesheet, Federal agencies may shade out or instruct the 
applicant to disregard any line item that is not needed.
    (4) When a grantee applies for additional funding (such as a 
continuation or supplemental award) or amends a previously submitted 
application, only the affected pages need be submitted. Previously 
submitted pages with information that is still current need not be 
resubmitted.



Sec. 33.11  State plans.

    (a) Scope. The statutes for some programs require States to submit 
plans before receiving grants. Under regulations implementing Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' States 
are allowed to simplify, consolidate and substitute plans. This section 
contains additional provisions for plans that are subject to regulations 
implementing the Executive order.
    (b) Requirements. A State need meet only Federal administrative or 
programmatic requirements for a plan that are in statutes or codified 
regulations.
    (c) Assurances. In each plan the State will include an assurance 
that the State shall comply with all applicable Federal statutes and 
regulations in effect with respect to the periods for which it receives 
grant funding. For

[[Page 118]]

this assurance and other assurances required in the plan, the State may:
    (1) Cite by number the statutory or regulatory provisions requiring 
the assurances and affirm that it gives the assurances required by those 
provisions,
    (2) Repeat the assurance language in the statutes or regulations, or
    (3) Develop its own language to the extent permitted by law.
    (d) Amendments. A State will amend a plan whenever necessary to 
reflect: (1) New or revised Federal statutes or regulations or (2) a 
material change in any State law, organization, policy, or State agency 
operation. The State will obtain approval for the amendment and its 
effective date but need submit for approval only the amended portions of 
the plan.



Sec. 33.12  Special grant or subgrant conditions for ``high-risk'' grantees.

    (a) A grantee or subgrantee may be considered ``high risk'' if an 
awarding agency determines that a grantee or subgrantee:
    (1) Has a history of unsatisfactory performance, or
    (2) Is not financially stable, or
    (3) Has a management system which does not meet the management 
standards set forth in this part, or
    (4) Has not conformed to terms and conditions of previous awards, or
    (5) Is otherwise not responsible; and if the awarding agency 
determines that an award will be made, special conditions and/or 
restrictions shall correspond to the high risk condition and shall be 
included in the award.
    (b) Special conditions or restrictions may include:
    (1) Payment on a reimbursement basis;
    (2) Withholding authority to proceed to the next phase until receipt 
of evidence of acceptable performance within a given funding period;
    (3) Requiring additional, more detailed financial reports;
    (4) Additional project monitoring;
    (5) Requiring the grantee or subgrantee to obtain technical or 
management assistance; or
    (6) Establishing additional prior approvals.
    (c) If an awarding agency decides to impose such conditions, the 
awarding official will notify the grantee or subgrantee as early as 
possible, in writing, of:
    (1) The nature of the special conditions/restrictions;
    (2) The reason(s) for imposing them;
    (3) The corrective actions which must be taken before they will be 
removed and the time allowed for completing the corrective actions and
    (4) The method of requesting reconsideration of the conditions/
restrictions imposed.



                   Subpart C--Post-Award Requirements

                        Financial Administration



Sec. 33.20  Standards for financial management systems.

    (a) A State must expand and account for grant funds in accordance 
with State laws and procedures for expending and accounting for its own 
funds. Fiscal control and accounting procedures of the State, as well as 
its subgrantees and cost-type contractors, must be sufficient to--
    (1) Permit preparation of reports required by this part and the 
statutes authorizing the grant, and
    (2) Permit the tracing of funds to a level of expenditures adequate 
to establish that such funds have not been used in violation of the 
restrictions and prohibitions of applicable statutes.
    (b) The financial management systems of other grantees and 
subgrantees must meet the following standards:
    (1) Financial reporting. Accurate, current, and complete disclosure 
of the financial results of financially assisted activities must be made 
in accordance with the financial reporting requirements of the grant or 
subgrant.
    (2) Accounting records. Grantees and subgrantees must maintain 
records which adequately identify the source and application of funds 
provided for financially-assisted activities. These records must contain 
information pertaining to grant or subgrant awards and authorizations, 
obligations, unobligated balances, assets, liabilities, outlays or 
expenditures, and income.

[[Page 119]]

    (3) Internal control. Effective control and accountability must be 
maintained for all grant and subgrant cash, real and personal property, 
and other assets. Grantees and subgrantees must adequately safeguard all 
such property and must assure that it is used solely for authorized 
purposes.
    (4) Budget control. Actual expenditures or outlays must be compared 
with budgeted amounts for each grant or subgrant. Financial information 
must be related to performance or productivity data, including the 
development of unit cost information whenever appropriate or 
specifically required in the grant or subgrant agreement. If unit cost 
data are required, estimates based on available documentation will be 
accepted whenever possible.
    (5) Allowable cost. Applicable OMB cost principles, agency program 
regulations, and the terms of grant and subgrant agreements will be 
followed in determining the reasonableness, allowability, and 
allocability of costs.
    (6) Source documentation. Accounting records must be supported by 
such source documentation as cancelled checks, paid bills, payrolls, 
time and attendance records, contract and subgrant award documents, etc.
    (7) Cash management. Procedures for minimizing the time elapsing 
between the transfer of funds from the U.S. Treasury and disbursement by 
grantees and subgrantees must be followed whenever advance payment 
procedures are used. Grantees must establish reasonable procedures to 
ensure the receipt of reports on subgrantees' cash balances and cash 
disbursements in sufficient time to enable them to prepare complete and 
accurate cash transactions reports to the awarding agency. When advances 
are made by letter-of-credit or electronic transfer of funds methods, 
the grantee must make drawdowns as close as possible to the time of 
making disbursements. Grantees must monitor cash drawdowns by their 
subgrantees to assure that they conform substantially to the same 
standards of timing and amount as apply to advances to the grantees.
    (c) An awarding agency may review the adequacy of the financial 
management system of any applicant for financial assistance as part of a 
preaward review or at any time subsequent to award.



Sec. 33.21  Payment.

    (a) Scope. This section prescribes the basic standard and the 
methods under which a Federal agency will make payments to grantees, and 
grantees will make payments to subgrantees and contractors.
    (b) Basic standard. Methods and procedures for payment shall 
minimize the time elapsing between the transfer of funds and 
disbursement by the grantee or subgrantee, in accordance with Treasury 
regulations at 31 CFR part 205.
    (c) Advances. Grantees and subgrantees shall be paid in advance, 
provided they maintain or demonstrate the willingness and ability to 
maintain procedures to minimize the time elapsing between the transfer 
of the funds and their disbursement by the grantee or subgrantee.
    (d) Reimbursement. Reimbursement shall be the preferred method when 
the requirements in paragraph (c) of this section are not met. Grantees 
and subgrantees may also be paid by reimbursement for any construction 
grant. Except as otherwise specified in regulation, Federal agencies 
shall not use the percentage of completion method to pay construction 
grants. The grantee or subgrantee may use that method to pay its 
construction contractor, and if it does, the awarding agency's payments 
to the grantee or subgrantee will be based on the grantee's or 
subgrantee's actual rate of disbursement.
    (e) Working capital advances. If a grantee cannot meet the criteria 
for advance payments described in paragraph (c) of this section, and the 
Federal agency has determined that reimbursement is not feasible because 
the grantee lacks sufficient working capital, the awarding agency may 
provide cash or a working capital advance basis. Under this procedure 
the awarding agency shall advance cash to the grantee to cover its 
estimated disbursement needs for an initial period generally geared to 
the grantee's disbursing cycle. Thereafter, the awarding agency shall 
reimburse the grantee for its actual cash disbursements. The

[[Page 120]]

working capital advance method of payment shall not be used by grantees 
or subgrantees if the reason for using such method is the unwillingness 
or inability of the grantee to provide timely advances to the subgrantee 
to meet the subgrantee's actual cash disbursements.
    (f) Effect of program income, refunds, and audit recoveries on 
payment. (1) Grantees and subgrantees shall disburse repayments to and 
interest earned on a revolving fund before requesting additional cash 
payments for the same activity.
    (2) Except as provided in paragraph (f)(1) of this section, grantees 
and subgrantees shall disburse program income, rebates, refunds, 
contract settlements, audit recoveries and interest earned on such funds 
before requesting additional cash payments.
    (g) Withholding payments. (1) Unless otherwise required by Federal 
statute, awarding agencies shall not withhold payments for proper 
charges incurred by grantees or subgrantees unless--
    (i) The grantee or subgrantee has failed to comply with grant award 
conditions or
    (ii) The grantee or subgrantee is indebted to the United States.
    (2) Cash withheld for failure to comply with grant award condition, 
but without suspension of the grant, shall be released to the grantee 
upon subsequent compliance. When a grant is suspended, payment 
adjustments will be made in accordance with Sec. 33.43(c).
    (3) A Federal agency shall not make payment to grantees for amounts 
that are withheld by grantees or subgrantees from payment to contractors 
to assure satisfactory completion of work. Payments shall be made by the 
Federal agency when the grantees or subgrantees actually disburse the 
withheld funds to the contractors or to escrow accounts established to 
assure satisfactory completion of work.
    (h) Cash depositories. (1) Consistent with the national goal of 
expanding the opportunities for minority business enterprises, grantees 
and subgrantees are encouraged to use minority banks (a bank which is 
owned at least 50 percent by minority group members). A list of minority 
owned banks can be obtained from the Minority Business Development 
Agency, Department of Commerce, Washington, DC 20230.
    (2) A grantee or subgrantee shall maintain a separate bank account 
only when required by Federal-State agreement.
    (i) Interest earned on advances. Except for interest earned on 
advances of funds exempt under the Intergovernmental Cooperation Act (31 
U.S.C. 6501 et seq.) and the Indian Self-Determination Act (23 U.S.C. 
450), grantees and subgrantees shall promptly, but at least quarterly, 
remit interest earned on advances to the Federal agency. The grantee or 
subgrantee may keep interest amounts up to $100 per year for 
administrative expenses.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 33.22  Allowable costs.

    (a) Limitation on use of funds. Grant funds may be used only for:
    (1) The allowable costs of the grantees, subgrantees and cost-type 
contractors, including allowable costs in the form of payments to fixed-
price contractors; and
    (2) Reasonable fees or profit to cost-type contractors but not any 
fee or profit (or other increment above allowable costs) to the grantee 
or subgrantee.
    (b) Applicable cost principles. For each kind of organization, there 
is a set of Federal principles for determining allowable costs. 
Allowable costs will be determined in accordance with the cost 
principles applicable to the organization incurring the costs. The 
following chart lists the kinds of organizations and the applicable cost 
principles.

                                                                        
------------------------------------------------------------------------
           For the costs of a--                Use the principles in--  
------------------------------------------------------------------------
State, local or Indian tribal government..  OMB Circular A-87.          
Private nonprofit organization other than   OMB Circular A-122.         
 an (1) institution of higher education,                                
 (2) hospital, or (3) organization named                                
 in OMB Circular A-122 as not subject to                                
 that circular.                                                         
Educational institutions..................  OMB Circular A-21.          

[[Page 121]]

                                                                        
For-profit organization other than a        48 CFR part 31. Contract    
 hospital and an organization named in OBM   Cost Principles and        
 Circular A-122 as not subject to that       Procedures, or uniform cost
 circular.                                   accounting standards that  
                                             comply with cost principles
                                             acceptable to the Federal  
                                             agency.                    
------------------------------------------------------------------------



Sec. 33.23  Period of availability of funds.

    (a) General. Where a funding period is specified, a grantee may 
charge to the award only costs resulting from obligations of the funding 
period unless carryover of unobligated balances is permitted, in which 
case the carryover balances may be charged for costs resulting from 
obligations of the subsequent funding period.
    (b) Liquidation of obligations. A grantee must liquidate all 
obligations incurred under the award not later than 90 days after the 
end of the funding period (or as specified in a program regulation) to 
coincide with the submission of the annual Financial Status Report (SF-
269). The Federal agency may extend this deadline at the request of the 
grantee.



Sec. 33.24  Matching or cost sharing.

    (a) Basic rule: Costs and contributions acceptable. With the 
qualifications and exceptions listed in paragraph (b) of this section, a 
matching or cost sharing requirement may be satisfied by either or both 
of the following:
    (1) Allowable costs incurred by the grantee, subgrantee or a cost-
type contractor under the assistance agreement. This includes allowable 
costs borne by non-Federal grants or by others cash donations from non-
Federal third parties.
    (2) The value of third party in-kind contributions applicable to the 
period to which the cost sharing or matching requirements applies.
    (b) Qualifications and exceptions--(1) Costs borne by other Federal 
grant agreements. Except as provided by Federal statute, a cost sharing 
or matching requirement may not be met by costs borne by another Federal 
grant. This prohibition does not apply to income earned by a grantee or 
subgrantee from a contract awarded under another Federal grant.
    (2) General revenue sharing. For the purpose of this section, 
general revenue sharing funds distributed under 31 U.S.C. 6702 are not 
considered Federal grant funds.
    (3) Cost or contributions counted towards other Federal costs-
sharing requirements. Neither costs nor the values of third party in-
kind contributions may count towards satisfying a cost sharing or 
matching requirement of a grant agreement if they have been or will be 
counted towards satisfying a cost sharing or matching requirement of 
another Federal grant agreement, a Federal procurement contract, or any 
other award of Federal funds.
    (4) Costs financed by program income. Costs financed by program 
income, as defined in Sec. 33.25, shall not count towards satisfying a 
cost sharing or matching requirement unless they are expressly permitted 
in the terms of the assistance agreement. (This use of general program 
income is described in Sec. 33.25(g).)
    (5) Services or property financed by income earned by contractors. 
Contractors under a grant may earn income from the activities carried 
out under the contract in addition to the amounts earned from the party 
awarding the contract. No costs of services or property supported by 
this income may count toward satisfying a cost sharing or matching 
requirement unless other provisions of the grant agreement expressly 
permit this kind of income to be used to meet the requirement.
    (6) Records. Costs and third party in-kind contributions counting 
towards satisfying a cost sharing or matching requirement must be 
verifiable from the records of grantees and subgrantee or cost-type 
contractors. These records must show how the value placed on third party 
in-kind contributions was derived. To the extent feasible, volunteer 
services will be supported by the same methods that the organization 
uses to support the allocability of regular personnel costs.
    (7) Special standards for third party in-kind contributions. (i) 
Third party in-kind contributions count towards satisfying a cost 
sharing or matching requirement only where, if the party receiving the 
contributions were to pay

[[Page 122]]

for them, the payments would be allowable costs.
    (ii) Some third party in-kind contributions are goods and services 
that, if the grantee, subgrantee, or contractor receiving the 
contribution had to pay for them, the payments would have been an 
indirect costs. Costs sharing or matching credit for such contributions 
shall be given only if the grantee, subgrantee, or contractor has 
established, along with its regular indirect cost rate, a special rate 
for allocating to individual projects or programs the value of the 
contributions.
    (iii) A third party in-kind contribution to a fixed-price contract 
may count towards satisfying a cost sharing or matching requirement only 
if it results in:
    (A) An increase in the services or property provided under the 
contract (without additional cost to the grantee or subgrantee) or
    (B) A cost savings to the grantee or subgrantee.
    (iv) The values placed on third party in-kind contributions for cost 
sharing or matching purposes will conform to the rules in the succeeding 
sections of this part. If a third party in-kind contribution is a type 
not treated in those sections, the value placed upon it shall be fair 
and reasonable.
    (c) Valuation of donated services--(1) Volunteer services. Unpaid 
services provided to a grantee or subgrantee by individuals will be 
valued at rates consistent with those ordinarily paid for similar work 
in the grantee's or subgrantee's organization. If the grantee or 
subgrantee does not have employees performing similar work, the rates 
will be consistent with those ordinarily paid by other employers for 
similar work in the same labor market. In either case, a reasonable 
amount for fringe benefits may be included in the valuation.
    (2) Employees of other organizations. When an employer other than a 
grantee, subgrantee, or cost-type contractor furnishes free of charge 
the services of an employee in the employee's normal line of work, the 
services will be valued at the employee's regular rate of pay exclusive 
of the employee's fringe benefits and overhead costs. If the services 
are in a different line of work, paragraph (c)(1) of this section 
applies.
    (d) Valuation of third party donated supplies and loaned equipment 
or space. (1) If a third party donates supplies, the contribution will 
be valued at the market value of the supplies at the time of donation.
    (2) If a third party donates the use of equipment or space in a 
building but retains title, the contribution will be valued at the fair 
rental rate of the equipment or space.
    (e) Valuation of third party donated equipment, buildings, and land. 
If a third party donates equipment, buildings, or land, and title passes 
to a grantee or subgrantee, the treatment of the donated property will 
depend upon the purpose of the grant or subgrant, as follows:
    (1) Awards for capital expenditures. If the purpose of the grant or 
subgrant is to assist the grantee or subgrantee in the acquisition of 
property, the market value of that property at the time of donation may 
be counted as cost sharing or matching,
    (2) Other awards. If assisting in the acquisition of property is not 
the purpose of the grant or subgrant, paragraphs (e)(2) (i) and (ii) of 
this section apply:
    (i) If approval is obtained from the awarding agency, the market 
value at the time of donation of the donated equipment or buildings and 
the fair rental rate of the donated land may be counted as cost sharing 
or matching. In the case of a subgrant, the terms of the grant agreement 
may require that the approval be obtained from the Federal agency as 
well as the grantee. In all cases, the approval may be given only if a 
purchase of the equipment or rental of the land would be approved as an 
allowable direct cost. If any part of the donated property was acquired 
with Federal funds, only the non-Federal share of the property may be 
counted as cost-sharing or matching.
    (ii) If approval is not obtained under paragraph (e)(2)(i) of this 
section, no amount may be counted for donated land, and only 
depreciation or use allowances may be counted for donated equipment and 
buildings. The depreciation or use allowances for this property are not 
treated as third party in-kind

[[Page 123]]

contributions. Instead, they are treated as costs incurred by the 
grantee or subgrantee. They are computed and allocated (usually as 
indirect costs) in accordance with the cost principles specified in 
Sec. 33.22, in the same way as depreciation or use allowances for 
purchased equipment and buildings. The amount of depreciation or use 
allowances for donated equipment and buildings is based on the 
property's market value at the time it was donated.
    (f) Valuation of grantee or subgrantee donated real property for 
construction/acquisition. If a grantee or subgrantee donates real 
property for a construction or facilities acquisition project, the 
current market value of that property may be counted as cost sharing or 
matching. If any part of the donated property was acquired with Federal 
funds, only the non-Federal share of the property may be counted as cost 
sharing or matching.
    (g) Appraisal of real property. In some cases under paragraphs (d), 
(e) and (f) of this section, it will be necessary to establish the 
market value of land or a building or the fair rental rate of land or of 
space in a building. In these cases, the Federal agency may require the 
market value or fair rental value be set by an independent appraiser, 
and that the value or rate be certified by the grantee. This requirement 
will also be imposed by the grantee on subgrantees.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 33.25  Program income.

    (a) General. Grantees are encouraged to earn income to defray 
program costs. Program income includes income from fees for services 
performed, from the use or rental of real or personal property acquired 
with grant funds, from the sale of commodities or items fabricated under 
a grant agreement, and from payments of principal and interest on loans 
made with grant funds. Except as otherwise provided in regulations of 
the Federal agency, program income does not include interest on grant 
funds, rebates, credits, discounts, refunds, etc. and interest earned on 
any of them.
    (b) Definition of program income. Program income means gross income 
received by the grantee or subgrantee directly generated by a grant 
supported activity, or earned only as a result of the grant agreement 
during the grant period. ``During the grant period'' is the time between 
the effective date of the award and the ending date of the award 
reflected in the final financial report.
    (c) Cost of generating program income. If authorized by Federal 
regulations or the grant agreement, costs incident to the generation of 
program income may be deducted from gross income to determine program 
income.
    (d) Governmental revenues. Taxes, special assessments, levies, 
fines, and other such revenues raised by a grantee or subgrantee are not 
program income unless the revenues are specifically identified in the 
grant agreement or Federal agency regulations as program income.
    (e) Royalties. Income from royalties and license fees for 
copyrighted material, patents, and inventions developed by a grantee or 
subgrantee is program income only if the revenues are specifically 
identified in the grant agreement or Federal agency regulations as 
program income. (See Sec. 33.34.)
    (f) Property. Proceeds from the sale of real property or equipment 
will be handled in accordance with the requirements of Secs. 33.31 and 
33.32.
    (g) Use of program income. Program income shall be deducted from 
outlays which may be both Federal and non-Federal as described below, 
unless the Federal agency regulations or the grant agreement specify 
another alternative (or a combination of the alternatives). In 
specifying alternatives, the Federal agency may distinguish between 
income earned by the grantee and income earned by subgrantees and 
between the sources, kinds, or amounts of income. When Federal agencies 
authorize the alternatives in paragraphs (g) (2) and (3) of this 
section, program income in excess of any limits stipulated shall also be 
deducted from outlays.
    (1) Deduction. Ordinarily program income shall be deducted from 
total allowable costs to determine the net allowable costs. Program 
income shall be

[[Page 124]]

used for current costs unless the Federal agency authorizes otherwise. 
Program income which the grantee did not anticipate at the time of the 
award shall be used to reduce the Federal agency and grantee 
contributions rather than to increase the funds committed to the 
project.
    (2) Addition. When authorized, program income may be added to the 
funds committed to the grant agreement by the Federal agency and the 
grantee. The program income shall be used for the purposes and under the 
conditions of the grant agreement.
    (3) Cost sharing or matching. When authorized, program income may be 
used to meet the cost sharing or matching requirement of the grant 
agreement. The amount of the Federal grant award remains the same.
    (h) Income after the award period. There are no Federal requirements 
governing the disposition of program income earned after the end of the 
award period (i.e., until the ending date of the final financial report, 
see paragraph (a) of this section), unless the terms of the agreement or 
the Federal agency regulations provide otherwise.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 33.26  Non-Federal audit.

    (a) Basic rule. Grantees and subgrantees are responsible for 
obtaining audits in accordance with the Single Audit Act Amendments of 
1996 (31 U.S.C. 7501-7507) and revised OMB Circular A-133, ``Audits of 
States, Local Governments, and Non-Profit Organizations.'' The audits 
shall be made by an independent auditor in accordance with generally 
accepted government auditing standards covering financial audits.
    (b) Subgrantees. State or local governments, as those terms are 
defined for purposes of the Single Audit Act Amendments of 1996, that 
provide Federal awards to a subgrantee, which expends $300,000 or more 
(or other amount as specified by OMB) in Federal awards in a fiscal 
year, shall:
    (1) Determine whether State or local subgrantees have met the audit 
requirements of the Act and whether subgrantees covered by OMB Circular 
A-110, ``Uniform Administrative Requirements for Grants and Agreements 
with Institutions of Higher Education, Hospitals, and Other Non-Profit 
Organizations,'' have met the audit requirements of the Act. Commercial 
contractors (private for-profit and private and governmental 
organizations) providing goods and services to State and local 
governments are not required to have a single audit performed. State and 
local governments should use their own procedures to ensure that the 
contractor has complied with laws and regulations affecting the 
expenditure of Federal funds;
    (2) Determine whether the subgrantee spent Federal assistance funds 
provided in accordance with applicable laws and regulations. This may be 
accomplished by reviewing an audit of the subgrantee made in accordance 
with the Act, Circular A-110, or through other means (e.g., program 
reviews) if the subgrantee has not had such an audit;
    (3) Ensure that appropriate corrective action is taken within six 
months after receipt of the audit report in instance of noncompliance 
with Federal laws and regulations;
    (4) Consider whether subgrantee audits necessitate adjustment of the 
grantee's own records; and
    (5) Require each subgrantee to permit independent auditors to have 
access to the records and financial statements.
    (c) Auditor selection. In arranging for audit services, Sec. 33.36 
shall be followed.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992; 62 FR 45939, 45943, Aug. 29, 1997]

                    Changes, Property, and Subawards



Sec. 33.30  Changes.

    (a) General. Grantees and subgrantees are permitted to rebudget 
within the approved direct cost budget to meet unanticipated 
requirements and may make limited program changes to the approved 
project. However, unless waived by the awarding agency, certain types of 
post-award changes in budgets and projects shall require the prior 
written approval of the awarding agency.

[[Page 125]]

    (b) Relation to cost principles. The applicable cost principles (see 
Sec. 33.22) contain requirements for prior approval of certain types of 
costs. Except where waived, those requirements apply to all grants and 
subgrants even if paragraphs (c) through (f) of this section do not.
    (c) Budget changes--(1) Nonconstruction projects. Except as stated 
in other regulations or an award document, grantees or subgrantees shall 
obtain the prior approval of the awarding agency whenever any of the 
following changes is anticipated under a nonconstruction award:
    (i) Any revision which would result in the need for additional 
funding.
    (ii) Unless waived by the awarding agency, cumulative transfers 
among direct cost categories, or, if applicable, among separately 
budgeted programs, projects, functions, or activities which exceed or 
are expected to exceed ten percent of the current total approved budget, 
whenever the awarding agency's share exceeds $100,000.
    (iii) Transfer of funds allotted for training allowances (i.e., from 
direct payments to trainees to other expense categories).
    (2) Construction projects. Grantees and subgrantees shall obtain 
prior written approval for any budget revision which would result in the 
need for additional funds.
    (3) Combined construction and nonconstruction projects. When a grant 
or subgrant provides funding for both construction and nonconstruction 
activities, the grantee or subgrantee must obtain prior written approval 
from the awarding agency before making any fund or budget transfer from 
nonconstruction to construction or vice versa.
    (d) Programmatic changes. Grantees or subgrantees must obtain the 
prior approval of the awarding agency whenever any of the following 
actions is anticipated:
    (1) Any revision of the scope or objectives of the project 
(regardless of whether there is an associated budget revision requiring 
prior approval).
    (2) Need to extend the period of availability of funds.
    (3) Changes in key persons in cases where specified in an 
application or a grant award. In research projects, a change in the 
project director or principal investigator shall always require approval 
unless waived by the awarding agency.
    (4) Under nonconstruction projects, contracting out, subgranting (if 
authorized by law) or otherwise obtaining the services of a third party 
to perform activities which are central to the purposes of the award. 
This approval requirement is in addition to the approval requirements of 
Sec. 33.36 but does not apply to the procurement of equipment, supplies, 
and general support services.
    (e) Additional prior approval requirements. The awarding agency may 
not require prior approval for any budget revision which is not 
described in paragraph (c) of this section.
    (f) Requesting prior approval. (1) A request for prior approval of 
any budget revision will be in the same budget formal the grantee used 
in its application and shall be accompanied by a narrative justification 
for the proposed revision.
    (2) A request for a prior approval under the applicable Federal cost 
principles (see Sec. 33.22) may be made by letter.
    (3) A request by a subgrantee for prior approval will be addressed 
in writing to the grantee. The grantee will promptly review such request 
and shall approve or disapprove the request in writing. A grantee will 
not approve any budget or project revision which is inconsistent with 
the purpose or terms and conditions of the Federal grant to the grantee. 
If the revision, requested by the subgrantee would result in a change to 
the grantee's approved project which requires Federal prior approval, 
the grantee will obtain the Federal agency's approval before approving 
the subgrantee's request.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6200, Feb. 21, 1992]



Sec. 33.31  Real property.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to real property acquired under a grant or subgrant 
will vest upon acquisition in the grantee or subgrantee respectively.

[[Page 126]]

    (b) Use. Except as otherwise provided by Federal statutes, real 
property will be used for the originally authorized purposes as long as 
needed for that purposes, and the grantee or subgrantee shall not 
dispose of or encumber its title or other interests.
    (c) Disposition. When real property is no longer needed for the 
originally authorized purpose, the grantee or subgrantee will request 
disposition instructions from the awarding agency. The instructions will 
provide for one of the following alternatives:
    (1) Retention of title. Retain title after compensating the awarding 
agency. The amount paid to the awarding agency will be computed by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the fair market value of the property. 
However, in those situations where a grantee or subgrantee is disposing 
of real property acquired with grant funds and acquiring replacement 
real property under the same program, the net proceeds from the 
disposition may be used as an offset to the cost of the replacement 
property.
    (2) Sale of property. Sell the property and compensate the awarding 
agency. The amount due to the awarding agency will be calculated by 
applying the awarding agency's percentage of participation in the cost 
of the original purchase to the proceeds of the sale after deduction of 
any actual and reasonable selling and fixing-up expenses. If the grant 
is still active, the net proceeds from sale may be offset against the 
original cost of the property. When a grantee or subgrantee is directed 
to sell property, sales procedures shall be followed that provide for 
competition to the extent practicable and result in the highest possible 
return.
    (3) Transfer of title. Transfer title to the awarding agency or to a 
third-party designated/approved by the awarding agency. The grantee or 
subgrantee shall be paid an amount calculated by applying the grantee or 
subgrantee's percentage of participation in the purchase of the real 
property to the current fair market value of the property.



Sec. 33.32  Equipment.

    (a) Title. Subject to the obligations and conditions set forth in 
this section, title to equipment acquired under a grant or subgrant will 
vest upon acquisition in the grantee or subgrantee respectively.
    (b) States. A State will use, manage, and dispose of equipment 
acquired under a grant by the State in accordance with State laws and 
procedures. Other grantees and subgrantees will follow paragraphs (c) 
through (e) of this section.
    (c) Use. (1) Equipment shall be used by the grantee or subgrantee in 
the program or project for which it was acquired as long as needed, 
whether or not the project or program continues to be supported by 
Federal funds. When no longer needed for the original program or 
project, the equipment may be used in other activities currently or 
previously supported by a Federal agency.
    (2) The grantee or subgrantee shall also make equipment available 
for use on other projects or programs currently or previously supported 
by the Federal Government, providing such use will not interfere with 
the work on the projects or program for which it was originally 
acquired. First preference for other use shall be given to other 
programs or projects supported by the awarding agency. User fees should 
be considered if appropriate.
    (3) Notwithstanding the encouragement in Sec. 33.25(a) to earn 
program income, the grantee or subgrantee must not use equipment 
acquired with grant funds to provide services for a fee to compete 
unfairly with private companies that provide equivalent services, unless 
specifically permitted or contemplated by Federal statute.
    (4) When acquiring replacement equipment, the grantee or subgrantee 
may use the equipment to be replaced as a trade-in or sell the property 
and use the proceeds to offset the cost of the replacement property, 
subject to the approval of the awarding agency.
    (d) Management requirements. Procedures for managing equipment 
(including replacement equipment), whether acquired in whole or in part 
with grant funds, until disposition takes place

[[Page 127]]

will, as a minimum, meet the following requirements:
    (1) Property records must be maintained that include a description 
of the property, a serial number or other identification number, the 
source of property, who holds title, the acquisition date, and cost of 
the property, percentage of Federal participation in the cost of the 
property, the location, use and condition of the property, and any 
ultimate disposition data including the date of disposal and sale price 
of the property.
    (2) A physical inventory of the property must be taken and the 
results reconciled with the property records at least once every two 
years.
    (3) A control system must be developed to ensure adequate safeguards 
to prevent loss, damage, or theft of the property. Any loss, damage, or 
theft shall be investigated.
    (4) Adequate maintenance procedures must be developed to keep the 
property in good condition.
    (5) If the grantee or subgrantee is authorized or required to sell 
the property, proper sales procedures must be established to ensure the 
highest possible return.
    (e) Disposition. When original or replacement equipment acquired 
under a grant or subgrant is no longer needed for the original project 
or program or for other activities currently or previously supported by 
a Federal agency, disposition of the equipment will be made as follows:
    (1) Items of equipment with a current per-unit fair market value of 
less than $5,000 may be retained, sold or otherwise disposed of with no 
further obligation to the awarding agency.
    (2) Items of equipment with a current per unit fair market value in 
excess of $5,000 may be retained or sold and the awarding agency shall 
have a right to an amount calculated by multiplying the current market 
value or proceeds from sale by the awarding agency's share of the 
equipment.
    (3) In cases where a grantee or subgrantee fails to take appropriate 
disposition actions, the awarding agency may direct the grantee or 
subgrantee to take excess and disposition actions.
    (f) Federal equipment. In the event a grantee or subgrantee is 
provided federally-owned equipment:
    (1) Title will remain vested in the Federal Government.
    (2) Grantees or subgrantees will manage the equipment in accordance 
with Federal agency rules and procedures, and submit an annual inventory 
listing.
    (3) When the equipment is no longer needed, the grantee or 
subgrantee will request disposition instructions from the Federal 
agency.
    (g) Right to transfer title. The Federal awarding agency may reserve 
the right to transfer title to the Federal Government or a third part 
named by the awarding agency when such a third party is otherwise 
eligible under existing statutes. Such transfers shall be subject to the 
following standards:
    (1) The property shall be identified in the grant or otherwise made 
known to the grantee in writing.
    (2) The Federal awarding agency shall issue disposition instruction 
within 120 calendar days after the end of the Federal support of the 
project for which it was acquired. If the Federal awarding agency fails 
to issue disposition instructions within the 120 calendar-day period the 
grantee shall follow Sec. 33.32(e).
    (3) When title to equipment is transferred, the grantee shall be 
paid an amount calculated by applying the percentage of participation in 
the purchase to the current fair market value of the property.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6201, Feb. 21, 1992]



Sec. 33.33  Supplies.

    (a) Title. Title to supplies acquired under a grant or subgrant will 
vest, upon acquisition, in the grantee or subgrantee respectively.
    (b) Disposition. If there is a residual inventory of unused supplies 
exceeding $5,000 in total aggregate fair market value upon termination 
or completion of the award, and if the supplies are not needed for any 
other federally sponsored programs or projects, the grantee or 
subgrantee shall compensate the awarding agency for its share.

[[Page 128]]



Sec. 33.34  Copyrights.

    The Federal awarding agency reserves a royalty-free, nonexclusive, 
and irrevocable license to reproduce, publish or otherwise use, and to 
authorize others to use, for Federal Government purposes:
    (a) The copyright in any work developed under a grant, subgrant, or 
contract under a grant or subgrant; and
    (b) Any rights of copyright to which a grantee, subgrantee or a 
contractor purchases ownership with grant support.



Sec. 33.35  Subawards to debarred and suspended parties.

    Grantees and subgrantees must not make any award or permit any award 
(subgrant or contract) at any tier to any party which is debarred or 
suspended or is otherwise excluded from or ineligible for participation 
in Federal assistance programs under Executive Order 12549, ``Debarment 
and Suspension.''



Sec. 33.36  Procurement.

    (a) States. When procuring property and services under a grant, a 
State will follow the same policies and procedures it uses for 
procurements from its non-Federal funds. The State will ensure that 
every purchase order or other contract includes any clauses required by 
Federal statutes and executive orders and their implementing 
regulations. Other grantees and subgrantees will follow paragraphs (b) 
through (i) in this section.
    (b) Procurement standards. (1) Grantees and subgrantees will use 
their own procurement procedures which reflect applicable State and 
local laws and regulations, provided that the procurements conform to 
applicable Federal law and the standards identified in this section.
    (2) Grantees and subgrantees will maintain a contract administration 
system which ensures that contractors perform in accordance with the 
terms, conditions, and specifications of their contracts or purchase 
orders.
    (3) Grantees and subgrantees will maintain a written code of 
standards of conduct governing the performance of their employees 
engaged in the award and administration of contracts. No employee, 
officer or agent of the grantee or subgrantee shall participate in 
selection, or in the award or administration of a contract supported by 
Federal funds if a conflict of interest, real or apparent, would be 
involved. Such a conflict would arise when:
    (i) The employee, officer or agent,
    (ii) Any member of his immediate family,
    (iii) His or her partner, or
    (iv) An organization which employs, or is about to employ, any of 
the above, has a financial or other interest in the firm selected for 
award. The grantee's or subgrantee's officers, employees or agents will 
neither solicit nor accept gratuities, favors or anything of monetary 
value from contractors, potential contractors, or parties to 
subagreements. Grantee and subgrantees may set minimum rules where the 
financial interest is not substantial or the gift is an unsolicited item 
of nominal intrinsic value. To the extent permitted by State or local 
law or regulations, such standards or conduct will provide for 
penalties, sanctions, or other disciplinary actions for violations of 
such standards by the grantee's and subgrantee's officers, employees, or 
agents, or by contractors or their agents. The awarding agency may in 
regulation provide additional prohibitions relative to real, apparent, 
or potential conflicts of interest.
    (4) Grantee and subgrantee procedures will provide for a review of 
proposed procurements to avoid purchase of unnecessary or duplicative 
items. Consideration should be given to consolidating or breaking out 
procurements to obtain a more economical purchase. Where appropriate, an 
analysis will be made of lease versus purchase alternatives, and any 
other appropriate analysis to determine the most economical approach.
    (5) To foster greater economy and efficiency, grantees and 
subgrantees are encouraged to enter into State and local 
intergovernmental agreements for procurement or use of common goods and 
services.
    (6) Grantees and subgrantees are encouraged to use Federal excess 
and surplus property in lieu of purchasing new equipment and property 
whenever such

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use is feasible and reduces project costs.
    (7) Grantees and subgrantees are encouraged to use value engineering 
clauses in contracts for construction projects of sufficient size to 
offer reasonable opportunities for cost reductions. Value engineering is 
a systematic and creative anaylsis of each contract item or task to 
ensure that its essential function is provided at the overall lower 
cost.
    (8) Grantees and subgrantees will make awards only to responsible 
contractors possessing the ability to perform successfully under the 
terms and conditions of a proposed procurement. Consideration will be 
given to such matters as contractor integrity, compliance with public 
policy, record of past performance, and financial and technical 
resources.
    (9) Grantees and subgrantees will maintain records sufficient to 
detail the significant history of a procurement. These records will 
include, but are not necessarily limited to the following: rationale for 
the method of procurement, selection of contract type, contractor 
selection or rejection, and the basis for the contract price.
    (10) Grantees and subgrantees will use time and material type 
contracts only--
    (i) After a determination that no other contract is suitable, and
    (ii) If the contract includes a ceiling price that the contractor 
exceeds at its own risk.
    (11) Grantees and subgrantees alone will be responsible, in 
accordance with good administrative practice and sound business 
judgment, for the settlement of all contractual and administrative 
issues arising out of procurements. These issues include, but are not 
limited to source evaluation, protests, disputes, and claims. These 
standards do not relieve the grantee or subgrantee of any contractual 
responsibilities under its contracts. Federal agencies will not 
substitute their judgment for that of the grantee or subgrantee unless 
the matter is primarily a Federal concern. Violations of law will be 
referred to the local, State, or Federal authority having proper 
jurisdiction.
    (12) Grantees and subgrantees will have protest procedures to handle 
and resolve disputes relating to their procurements and shall in all 
instances disclose information regarding the protest to the awarding 
agency. A protestor must exhaust all administrative remedies with the 
grantee and subgrantee before pursuing a protest with the Federal 
agency. Reviews of protests by the Federal agency will be limited to:
    (i) Violations of Federal law or regulations and the standards of 
this section (violations of State or local law will be under the 
jurisdiction of State or local authorities) and
    (ii) Violations of the grantee's or subgrantee's protest procedures 
for failure to review a complaint or protest. Protests received by the 
Federal agency other than those specified above will be referred to the 
grantee or subgrantee.
    (c) Competition. (1) All procurement transactions will be conducted 
in a manner providing full and open competition consistent with the 
standards of Sec. 33.36. Some of the situations considered to be 
restrictive of competition include but are not limited to:
    (i) Placing unreasonable requirements on firms in order for them to 
qualify to do business,
    (ii) Requiring unnecessary experience and excessive bonding,
    (iii) Noncompetitive pricing practices between firms or between 
affiliated companies,
    (iv) Noncompetitive awards to consultants that are on retainer 
contracts,
    (v) Organizational conflicts of interest,
    (vi) Specifying only a ``brand name'' product instead of allowing 
``an equal'' product to be offered and describing the performance of 
other relevant requirements of the procurement, and
    (vii) Any arbitrary action in the procurement process.
    (2) Grantees and subgrantees will conduct procurements in a manner 
that prohibits the use of statutorily or administratively imposed in-
State or local geographical preferences in the evaluation of bids or 
proposals, except in those cases where applicable Federal statutes 
expressly mandate or encourage geographic preference. Nothing in this 
section preempts State licensing laws. When contracting for 
architectural and engineering (A/E) services,

[[Page 130]]

geographic location may be a selection criteria provided its application 
leaves an appropriate number of qualified firms, given the nature and 
size of the project, to compete for the contract.
    (3) Grantees will have written selection procedures for procurement 
transactions. These procedures will ensure that all solicitations:
    (i) Incorporate a clear and accurate description of the technical 
requirements for the material, product, or service to be procured. Such 
description shall not, in competitive procurements, contain features 
which unduly restrict competition. The description may include a 
statement of the qualitative nature of the material, product or service 
to be procured, and when necessary, shall set forth those minimum 
essential characteristics and standards to which it must conform if it 
is to satisfy its intended use. Detailed product specifications should 
be avoided if at all possible. When it is impractical or uneconomical to 
make a clear and accurate description of the technical requirements, a 
``brand name or equal'' description may be used as a means to define the 
performance or other salient requirements of a procurement. The specific 
features of the named brand which must be met by offerors shall be 
clearly stated; and
    (ii) Identify all requirements which the offerors must fulfill and 
all other factors to be used in evaluating bids or proposals.
    (4) Grantees and subgrantees will ensure that all prequalified lists 
of persons, firms, or products which are used in acquiring goods and 
services are current and include enough qualified sources to ensure 
maximum open and free competition. Also, grantees and subgrantees will 
not preclude potential bidders from qualifying during the solicitation 
period.
    (d) Methods of procurement to be followed--(1) Procurement by small 
purchase procedures. Small purchase procedures are those relatively 
simple and informal procurement methods for securing services, supplies, 
or other property that do not cost more than the simplified acquisition 
threshold fixed at 41 U.S.C. 403(11) (currently set at $100,000). If 
small purchase procedures are used, price or rate quotations shall be 
obtained from an adequate number of qualified sources.
    (2) Procurement by sealed bids (formal advertising). Bids are 
publicly solicited and a firm-fixed-price contract (lump sum or unit 
price) is awarded to the responsible bidder whose bid, conforming with 
all the material terms and conditions of the invitation for bids, is the 
lowest in price. The sealed bid method is the preferred method for 
procuring construction, if the conditions in Sec. 33.36(d)(2)(i) apply.
    (i) In order for sealed bidding to be feasible, the following 
conditions should be present:
    (A) A complete, adequate, and realistic specification or purchase 
description is available;
    (B) Two or more responsible bidders are willing and able to compete 
effectively and for the business; and
    (C) The procurement lends itself to a firm fixed price contract and 
the selection of the successful bidder can be made principally on the 
basis of price.
    (ii) If sealed bids are used, the following requirements apply:
    (A) The invitation for bids will be publicly advertised and bids 
shall be solicited from an adequate number of known suppliers, providing 
them sufficient time prior to the date set for opening the bids;
    (B) The invitation for bids, which will include any specifications 
and pertinent attachments, shall define the items or services in order 
for the bidder to properly respond;
    (C) All bids will be publicly opened at the time and place 
prescribed in the invitation for bids;
    (D) A firm fixed-price contract award will be made in writing to the 
lowest responsive and responsible bidder. Where specified in bidding 
documents, factors such as discounts, transportation cost, and life 
cycle costs shall be considered in determining which bid is lowest. 
Payment discounts will only be used to determine the low bid when prior 
experience indicates that such discounts are usually taken advantage of; 
and
    (E) Any or all bids may be rejected if there is a sound documented 
reason.
    (3) Procurement by competitive proposals. The technique of 
competitive proposals is normally conducted with

[[Page 131]]

more than one source submitting an offer, and either a fixed-price or 
cost-reimbursement type contract is awarded. It is generally used when 
conditions are not appropriate for the use of sealed bids. If this 
method is used, the following requirements apply:
    (i) Requests for proposals will be publicized and identify all 
evaluation factors and their relative importance. Any response to 
publicized requests for proposals shall be honored to the maximum extent 
practical;
    (ii) Proposals will be solicited from an adequate number of 
qualified sources;
    (iii) Grantees and subgrantees will have a method for conducting 
technical evaluations of the proposals received and for selecting 
awardees;
    (iv) Awards will be made to the responsible firm whose proposal is 
most advantageous to the program, with price and other factors 
considered; and
    (v) Grantees and subgrantees may use competitive proposal procedures 
for qualifications-based procurement of architectural/engineering (A/E) 
professional services whereby competitors' qualifications are evaluated 
and the most qualified competitor is selected, subject to negotiation of 
fair and reasonable compensation. The method, where price is not used as 
a selection factor, can only be used in procurement of A/E professional 
services. It cannot be used to purchase other types of services though 
A/E firms are a potential source to perform the proposed effort.
    (4) Procurement by noncompetitive proposals is procurement through 
solicitation of a proposal from only one source, or after solicitation 
of a number of sources, competition is determined inadequate.
    (i) Procurement by noncompetitive proposals may be used only when 
the award of a contract is infeasible under small purchase procedures, 
sealed bids or competitive proposals and one of the following 
circumstances applies:
    (A) The item is available only from a single source;
    (B) The public exigency or emergency for the requirement will not 
permit a delay resulting from competitive solicitation;
    (C) The awarding agency authorizes noncompetitive proposals; or
    (D) After solicitation of a number of sources, competition is 
determined inadequate.
    (ii) Cost analysis, i.e., verifying the proposed cost data, the 
projections of the data, and the evaluation of the specific elements of 
costs and profits, is required.
    (iii) Grantees and subgrantees may be required to submit the 
proposed procurement to the awarding agency for pre-award review in 
accordance with paragraph (g) of this section.
    (e) Contracting with small and minority firms, women's business 
enterprise and labor surplus area firms. (1) The grantee and subgrantee 
will take all necessary affirmative steps to assure that minority firms, 
women's business enterprises, and labor surplus area firms are used when 
possible.
    (2) Affirmative steps shall include:
    (i) Placing qualified small and minority businesses and women's 
business enterprises on solicitation lists;
    (ii) Assuring that small and minority businesses, and women's 
business enterprises are solicited whenever they are potential sources;
    (iii) Dividing total requirements, when economically feasible, into 
smaller tasks or quantities to permit maximum participation by small and 
minority business, and women's business enterprises;
    (iv) Establishing delivery schedules, where the requirement permits, 
which encourage participation by small and minority business, and 
women's business enterprises;
    (v) Using the services and assistance of the Small Business 
Administration, and the Minority Business Development Agency of the 
Department of Commerce; and
    (vi) Requiring the prime contractor, if subcontracts are to be let, 
to take the affirmative steps listed in paragraphs (e)(2) (i) through 
(v) of this section.
    (f) Contract cost and price. (1) Grantees and subgrantees must 
perform a cost or price analysis in connection with every procurement 
action including contract modifications. The method and degree of 
analysis is dependent on the facts surrounding the particular

[[Page 132]]

procurement situation, but as a starting point, grantees must make 
independent estimates before receiving bids or proposals. A cost 
analysis must be performed when the offeror is required to submit the 
elements of his estimated cost, e.g., under professional, consulting, 
and architectural engineering services contracts. A cost analysis will 
be necessary when adequate price competition is lacking, and for sole 
source procurements, including contract modifications or change orders, 
unless price resonableness can be established on the basis of a catalog 
or market price of a commercial product sold in substantial quantities 
to the general public or based on prices set by law or regulation. A 
price analysis will be used in all other instances to determine the 
reasonableness of the proposed contract price.
    (2) Grantees and subgrantees will negotiate profit as a separate 
element of the price for each contract in which there is no price 
competition and in all cases where cost analysis is performed. To 
establish a fair and reasonable profit, consideration will be given to 
the complexity of the work to be performed, the risk borne by the 
contractor, the contractor's investment, the amount of subcontracting, 
the quality of its record of past performance, and industry profit rates 
in the surrounding geographical area for similar work.
    (3) Costs or prices based on estimated costs for contracts under 
grants will be allowable only to the extent that costs incurred or cost 
estimates included in negotiated prices are consistent with Federal cost 
principles (see Sec. 33.22). Grantees may reference their own cost 
principles that comply with the applicable Federal cost principles.
    (4) The cost plus a percentage of cost and percentage of 
construction cost methods of contracting shall not be used.
    (g) Awarding agency review. (1) Grantees and subgrantees must make 
available, upon request of the awarding agency, technical specifications 
on proposed procurements where the awarding agency believes such review 
is needed to ensure that the item and/or service specified is the one 
being proposed for purchase. This review generally will take place prior 
to the time the specification is incorporated into a solicitation 
document. However, if the grantee or subgrantee desires to have the 
review accomplished after a solicitation has been developed, the 
awarding agency may still review the specifications, with such review 
usually limited to the technical aspects of the proposed purchase.
    (2) Grantees and subgrantees must on request make available for 
awarding agency pre-award review procurement documents, such as requests 
for proposals or invitations for bids, independent cost estimates, etc. 
when:
    (i) A grantee's or subgrantee's procurement procedures or operation 
fails to comply with the procurement standards in this section; or
    (ii) The procurement is expected to exceed the simplified 
acquisition threshold and is to be awarded without competition or only 
one bid or offer is received in response to a solicitation; or
    (iii) The procurement, which is expected to exceed the simplified 
acquisition threshold, specifies a ``brand name'' product; or
    (iv) The proposed award is more than the simplified acquisition 
threshold and is to be awarded to other than the apparent low bidder 
under a sealed bid procurement; or
    (v) A proposed contract modification changes the scope of a contract 
or increases the contract amount by more than the simplified acquisition 
threshold.
    (3) A grantee or subgrantee will be exempt from the pre-award review 
in paragraph (g)(2) of this section if the awarding agency determines 
that its procurement systems comply with the standards of this section.
    (i) A grantee or subgrantee may request that its procurement system 
be reviewed by the awarding agency to determine whether its system meets 
these standards in order for its system to be certified. Generally, 
these reviews shall occur where there is a continuous high-dollar 
funding, and third-party contracts are awarded on a regular basis.
    (ii) A grantee or subgrantee may self-certify its procurement 
system. Such self-certification shall not limit the awarding agency's 
right to survey the

[[Page 133]]

system. Under a self-certification procedure, awarding agencies may wish 
to rely on written assurances from the grantee or subgrantee that it is 
complying with these standards. A grantee or subgrantee will cite 
specific procedures, regulations, standards, etc., as being in 
compliance with these requirements and have its system available for 
review.
    (h) Bonding requirements. For construction or facility improvement 
contracts or subcontracts exceeding the simplified acquisition 
threshold, the awarding agency may accept the bonding policy and 
requirements of the grantee or subgrantee provided the awarding agency 
has made a determination that the awarding agency's interest is 
adequately protected. If such a determination has not been made, the 
minimum requirements shall be as follows:
    (1) A bid guarantee from each bidder equivalent to five percent of 
the bid price. The ``bid guarantee'' shall consist of a firm commitment 
such as a bid bond, certified check, or other negotiable instrument 
accompanying a bid as assurance that the bidder will, upon acceptance of 
his bid, execute such contractual documents as may be required within 
the time specified.
    (2) A performance bond on the part of the contractor for 100 percent 
of the contract price. A ``performance bond'' is one executed in 
connection with a contract to secure fulfillment of all the contractor's 
obligations under such contract.
    (3) A payment bond on the part of the contractor for 100 percent of 
the contract price. A ``payment bond'' is one executed in connection 
with a contract to assure payment as required by law of all persons 
supplying labor and material in the execution of the work provided for 
in the contract.
    (i) Contract provisions. A grantee's and subgrantee's contracts must 
contain provisions in paragraph (i) of this section. Federal agencies 
are permitted to require changes, remedies, changed conditions, access 
and records retention, suspension of work, and other clauses approved by 
the Office of Federal Procurement Policy.
    (1) Administrative, contractual, or legal remedies in instances 
where contractors violate or breach contract terms, and provide for such 
sanctions and penalties as may be appropriate. (Contracts more than the 
simplified acquisition threshold)
    (2) Termination for cause and for convenience by the grantee or 
subgrantee including the manner by which it will be effected and the 
basis for settlement. (All contracts in excess of $10,000)
    (3) Compliance with Executive Order 11246 of September 24, 1965, 
entitled ``Equal Employment Opportunity,'' as amended by Executive Order 
11375 of October 13, 1967, and as supplemented in Department of Labor 
regulations (41 CFR chapter 60). (All construction contracts awarded in 
excess of $10,000 by grantees and their contractors or subgrantees)
    (4) Compliance with the Copeland ``Anti-Kickback'' Act (18 U.S.C. 
874) as supplemented in Department of Labor regulations (29 CFR Part 3). 
(All contracts and subgrants for construction or repair)
    (5) Compliance with the Davis-Bacon Act (40 U.S.C. 276a to 276a-7) 
as supplemented by Department of Labor regulations (29 CFR Part 5). 
(Construction contracts in excess of $2000 awarded by grantees and 
subgrantees when required by Federal grant program legislation)
    (6) Compliance with Sections 103 and 107 of the Contract Work Hours 
and Safety Standards Act (40 U.S.C. 327-330) as supplemented by 
Department of Labor regulations (29 CFR Part 5). (Construction contracts 
awarded by grantees and subgrantees in excess of $2000, and in excess of 
$2500 for other contracts which involve the employment of mechanics or 
laborers)
    (7) Notice of awarding agency requirements and regulations 
pertaining to reporting.
    (8) Notice of awarding agency requirements and regulations 
pertaining to patent rights with respect to any discovery or invention 
which arises or is developed in the course of or under such contract.
    (9) Awarding agency requirements and regulations pertaining to 
copyrights and rights in data.
    (10) Access by the grantee, the subgrantee, the Federal grantor 
agency,

[[Page 134]]

the Comptroller General of the United States, or any of their duly 
authorized representatives to any books, documents, papers, and records 
of the contractor which are directly pertinent to that specific contract 
for the purpose of making audit, examination, excerpts, and 
transcriptions.
    (11) Retention of all required records for three years after 
grantees or subgrantees make final payments and all other pending 
matters are closed.
    (12) Compliance with all applicable standards, orders, or 
requirements issued under section 306 of the Clean Air Act (42 U.S.C. 
1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive 
Order 11738, and Environmental Protection Agency regulations (40 CFR 
part 15). (Contracts, subcontracts, and subgrants of amounts in excess 
of $100,000)
    (13) Mandatory standards and policies relating to energy efficiency 
which are contained in the state energy conservation plan issued in 
compliance with the Energy Policy and Conservation Act (Pub. L. 94-163, 
89 Stat. 871).
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6201, Feb. 21, 1992; 60 FR 19639, Apr. 19, 1995]



Sec. 33.37  Subgrants.

    (a) States. States shall follow State law and procedures when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. States shall:
    (1) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations;
    (2) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statute and regulation;
    (3) Ensure that a provision for compliance with Sec. 33.42 is placed 
in every cost reimbursement subgrant; and
    (4) Conform any advances of grant funds to subgrantees substantially 
to the same standards of timing and amount that apply to cash advances 
by Federal agencies.
    (b) All other grantees. All other grantees shall follow the 
provisions of this part which are applicable to awarding agencies when 
awarding and administering subgrants (whether on a cost reimbursement or 
fixed amount basis) of financial assistance to local and Indian tribal 
governments. Grantees shall:
    (1) Ensure that every subgrant includes a provision for compliance 
with this part;
    (2) Ensure that every subgrant includes any clauses required by 
Federal statute and executive orders and their implementing regulations; 
and
    (3) Ensure that subgrantees are aware of requirements imposed upon 
them by Federal statutes and regulations.
    (c) Exceptions. By their own terms, certain provisions of this part 
do not apply to the award and administration of subgrants:
    (1) Section 33.10;
    (2) Section 33.11;
    (3) The letter-of-credit procedures specified in Treasury 
Regulations at 31 CFR part 205, cited in Sec. 33.21; and
    (4) Section 33.50.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6201, Feb. 21, 1992]

              Reports, Records, Retention, and Enforcement



Sec. 33.40  Monitoring and reporting program performance.

    (a) Monitoring by grantees. Grantees are responsible for managing 
the day-to-day operations of grant and subgrant supported activities. 
Grantees must monitor grant and subgrant supported activities to assure 
compliance with applicable Federal requirements and that performance 
goals are being achieved. Grantee monitoring must cover each program, 
function or activity.
    (b) Nonconstruction performance reports. The Federal agency may, if 
it decides that performance information available from subsequent 
applications contains sufficient information to meet its programmatic 
needs, require the grantee to submit a performance report only upon 
expiration or termination of grant support. Unless waived by the Federal 
agency this report will be due on the same date as the final Financial 
Status Report.

[[Page 135]]

    (1) Grantees shall submit annual performance reports unless the 
awarding agency requires quarterly or semi-annual reports. However, 
performance reports will not be required more frequently than quarterly. 
Annual reports shall be due 90 days after the grant year, quarterly or 
semi-annual reports shall be due 30 days after the reporting period. The 
final performance report will be due 90 days after the expiration or 
termination of grant support. If a justified request is submitted by a 
grantee, the Federal agency may extend the due date for any performance 
report. Additionally, requirements for unnecessary performance reports 
may be waived by the Federal agency.
    (2) Performance reports will contain, for each grant, brief 
information on the following:
    (i) A comparison of actual accomplishments to the objectives 
established for the period. Where the output of the project can be 
quantified, a computation of the cost per unit of output may be required 
if that information will be useful.
    (ii) The reasons for slippage if established objectives were not 
met.
    (iii) Additional pertinent information including, when appropriate, 
analysis and explanation of cost overruns or high unit costs.
    (3) Grantees will not be required to submit more than the original 
and two copies of performance reports.
    (4) Grantees will adhere to the standards in this section in 
prescribing performance reporting requirements for subgrantees.
    (c) Construction performance reports. For the most part, on-site 
technical inspections and certified percentage-of-completion data are 
relied on heavily by Federal agencies to monitor progress under 
construction grants and subgrants. The Federal agency will require 
additional formal performance reports only when considered necessary, 
and never more frequently than quarterly.
    (d) Significant developments. Events may occur between the scheduled 
performance reporting dates which have significant impact upon the grant 
or subgrant supported activity. In such cases, the grantee must inform 
the Federal agency as soon as the following types of conditions become 
known:
    (1) Problems, delays, or adverse conditions which will materially 
impair the ability to meet the objective of the award. This disclosure 
must include a statement of the action taken, or contemplated, and any 
assistance needed to resolve the situation.
    (2) Favorable developments which enable meeting time schedules and 
objectives sooner or at less cost than anticipated or producing more 
beneficial results than originally planned.
    (e) Federal agencies may make site visits as warranted by program 
needs.
    (f) Waivers, extensions. (1) Federal agencies may waive any 
performance report required by this part if not needed.
    (2) The grantee may waive any performance report from a subgrantee 
when not needed. The grantee may extend the due date for any performance 
report from a subgrantee if the grantee will still be able to meet its 
performance reporting obligations to the Federal agency.



Sec. 33.41  Financial reporting.

    (a) General. (1) Except as provided in paragraphs (a) (2) and (5) of 
this section, grantees will use only the forms specified in paragraphs 
(a) through (e) of this section, and such supplementary or other forms 
as may from time to time be authorized by OMB, for:
    (i) Submitting financial reports to Federal agencies, or
    (ii) Requesting advances or reimbursements when letters of credit 
are not used.
    (2) Grantees need not apply the forms prescribed in this section in 
dealing with their subgrantees. However, grantees shall not impose more 
burdensome requirements on subgrantees.
    (3) Grantees shall follow all applicable standard and supplemental 
Federal agency instructions approved by OMB to the extend required under 
the Paperwork Reduction Act of 1980 for use in connection with forms 
specified in paragraphs (b) through (e) of this section. Federal 
agencies may issue substantive supplementary instructions only with the 
approval of OMB. Federal agencies may shade out or instruct the

[[Page 136]]

grantee to disregard any line item that the Federal agency finds 
unnecessary for its decisionmaking purposes.
    (4) Grantees will not be required to submit more than the original 
and two copies of forms required under this part.
    (5) Federal agencies may provide computer outputs to grantees to 
expedite or contribute to the accuracy of reporting. Federal agencies 
may accept the required information from grantees in machine usable 
format or computer printouts instead of prescribed forms.
    (6) Federal agencies may waive any report required by this section 
if not needed.
    (7) Federal agencies may extend the due date of any financial report 
upon receiving a justified request from a grantee.
    (b) Financial Status Report--(1) Form. Grantees will use Standard 
Form 269 or 269A, Financial Status Report, to report the status of funds 
for all nonconstruction grants and for construction grants when required 
in accordance with Sec. 33.41(e)(2)(iii).
    (2) Accounting basis. Each grantee will report program outlays and 
program income on a cash or accrual basis as prescribed by the awarding 
agency. If the Federal agency requires accrual information and the 
grantee's accounting records are not normally kept on the accural basis, 
the grantee shall not be required to convert its accounting system but 
shall develop such accrual information through and analysis of the 
documentation on hand.
    (3) Frequency. The Federal agency may prescribe the frequency of the 
report for each project or program. However, the report will not be 
required more frequently than quarterly. If the Federal agency does not 
specify the frequency of the report, it will be submitted annually. A 
final report will be required upon expiration or termination of grant 
support.
    (4) Due date. When reports are required on a quarterly or semiannual 
basis, they will be due 30 days after the reporting period. When 
required on an annual basis, they will be due 90 days after the grant 
year. Final reports will be due 90 days after the expiration or 
termination of grant support.
    (c) Federal Cash Transactions Report--(1) Form. (i) For grants paid 
by letter or credit, Treasury check advances or electronic transfer of 
funds, the grantee will submit the Standard Form 272, Federal Cash 
Transactions Report, and when necessary, its continuation sheet, 
Standard Form 272a, unless the terms of the award exempt the grantee 
from this requirement.
    (ii) These reports will be used by the Federal agency to monitor 
cash advanced to grantees and to obtain disbursement or outlay 
information for each grant from grantees. The format of the report may 
be adapted as appropriate when reporting is to be accomplished with the 
assistance of automatic data processing equipment provided that the 
information to be submitted is not changed in substance.
    (2) Forecasts of Federal cash requirements. Forecasts of Federal 
cash requirements may be required in the ``Remarks'' section of the 
report.
    (3) Cash in hands of subgrantees. When considered necessary and 
feasible by the Federal agency, grantees may be required to report the 
amount of cash advances in excess of three days' needs in the hands of 
their subgrantees or contractors and to provide short narrative 
explanations of actions taken by the grantee to reduce the excess 
balances.
    (4) Frequency and due date. Grantees must submit the report no later 
than 15 working days following the end of each quarter. However, where 
an advance either by letter of credit or electronic transfer of funds is 
authorized at an annualized rate of one million dollars or more, the 
Federal agency may require the report to be submitted within 15 working 
days following the end of each month.
    (d) Request for advance or reimbursement--(1) Advance payments. 
Requests for Treasury check advance payments will be submitted on 
Standard Form 270, Request for Advance or Reimbursement. (This form will 
not be used for drawdowns under a letter of credit, electronic funds 
transfer or when Treasury check advance payments are made to the grantee 
automatically on a predetermined basis.)
    (2) Reimbursements. Requests for reimbursement under nonconstruction

[[Page 137]]

grants will also be submitted on Standard Form 270. (For reimbursement 
requests under construction grants, see paragraph (e)(1) of this 
section.)
    (3) The frequency for submitting payment requests is treated in 
Sec. 33.41(b)(3).
    (e) Outlay report and request for reimbursement for construction 
programs--(1) Grants that support construction activities paid by 
reimbursement method. (i) Requests for reimbursement under construction 
grants will be submitted on Standard Form 271, Outlay Report and Request 
for Reimbursement for Construction Programs. Federal agencies may, 
however, prescribe the Request for Advance or Reimbursement form, 
specified in Sec. 33.41(d), instead of this form.
    (ii) The frequency for submitting reimbursement requests is treated 
in Sec. 33.41(b)(3).
    (2) Grants that support construction activities paid by letter of 
credit, electronic funds transfer or Treasury check advance. (i) When a 
construction grant is paid by letter of credit, electronic funds 
transfer or Treasury check advances, the grantee will report its outlays 
to the Federal agency using Standard Form 271, Outlay Report and Request 
for Reimbursement for Construction Programs. The Federal agency will 
provide any necessary special instruction. However, frequency and due 
date shall be governed by Sec. 33.41(b) (3) and (4).
    (ii) When a construction grant is paid by Treasury check advances 
based on periodic requests from the grantee, the advances will be 
requested on the form specified in Sec. 33.41(d).
    (iii) The Federal agency may substitute the Financial Status Report 
specified in Sec. 33.41(b) for the Outlay Report and Request for 
Reimbursement for Construction Programs.
    (3) Accounting basis. The accounting basis for the Outlay Report and 
Request for Reimbursement for Construction Programs shall be governed by 
Sec. 33.41(b)(2).
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6201, Feb. 21, 1992]



Sec. 33.42  Retention and access requirements for records.

    (a) Applicability. (1) This section applies to all financial and 
programmatic records, supporting documents, statistical records, and 
other records of grantees or subgrantees which are:
    (i) Required to be maintained by the terms of this part, program 
regulations or the grant agreement, or
    (ii) Otherwise reasonably considered as pertinent to program 
regulations or the grant agreement.
    (2) This section does not apply to records maintained by contractors 
or subcontractors. For a requirement to place a provision concerning 
records in certain kinds of contracts, see Sec. 33.36(i)(10).
    (b) Length of retention period. (1) Except as otherwise provided, 
records must be retained for three years from the starting date 
specified in paragraph (c) of this section.
    (2) If any litigation, claim, negotiation, audit or other action 
involving the records has been started before the expiration of the 3-
year period, the records must be retained until completion of the action 
and resolution of all issues which arise from it, or until the end of 
the regular 3-year period, whichever is later.
    (3) To avoid duplicate recordkeeping, awarding agencies may make 
special arrangements with grantees and subgrantees to retain any records 
which are continuously needed for joint use. The awarding agency will 
request transfer of records to its custody when it determines that the 
records possess long-term retention value. When the records are 
transferred to or maintained by the Federal agency, the 3-year retention 
requirement is not applicable to the grantee or subgrantee.
    (c) Starting date of retention period--(1) General. When grant 
support is continued or renewed at annual or other intervals, the 
retention period for the records of each funding period starts on the 
day the grantee or subgrantee submits to the awarding agency its single 
or last expenditure report for that period. However, if grant support is 
continued or renewed quarterly, the retention period for each year's 
records starts on the day the grantee submits

[[Page 138]]

its expenditure report for the last quarter of the Federal fiscal year. 
In all other cases, the retention period starts on the day the grantee 
submits its final expenditure report. If an expenditure report has been 
waived, the retention period starts on the day the report would have 
been due.
    (2) Real property and equipment records. The retention period for 
real property and equipment records starts from the date of the 
disposition or replacement or transfer at the direction of the awarding 
agency.
    (3) Records for income transactions after grant or subgrant support. 
In some cases grantees must report income after the period of grant 
support. Where there is such a requirement, the retention period for the 
records pertaining to the earning of the income starts from the end of 
the grantee's fiscal year in which the income is earned.
    (4) Indirect cost rate proposals, cost allocations plans, etc. This 
paragraph applies to the following types of documents, and their 
supporting records: indirect cost rate computations or proposals, cost 
allocation plans, and any similar accounting computations of the rate at 
which a particular group of costs is chargeable (such as computer usage 
chargeback rates or composite fringe benefit rates).
    (i) If submitted for negotiation. If the proposal, plan, or other 
computation is required to be submitted to the Federal Government (or to 
the grantee) to form the basis for negotiation of the rate, then the 3-
year retention period for its supporting records starts from the date of 
such submission.
    (ii) If not submitted for negotiation. If the proposal, plan, or 
other computation is not required to be submitted to the Federal 
Government (or to the grantee) for negotiation purposes, then the 3-year 
retention period for the proposal plan, or computation and its 
supporting records starts from end of the fiscal year (or other 
accounting period) covered by the proposal, plan, or other computation.
    (d) Substitution of microfilm. Copies made by microfilming, 
photocopying, or similar methods may be substituted for the original 
records.
    (e) Access to records--(1) Records of grantees and subgrantees. The 
awarding agency and the Comptroller General of the United States, or any 
of their authorized representatives, shall have the right of access to 
any pertinent books, documents, papers, or other records of grantees and 
subgrantees which are pertinent to the grant, in order to make audits, 
examinations, excerpts, and transcripts.
    (2) Expiration of right of access. The rights of access in this 
section must not be limited to the required retention period but shall 
last as long as the records are retained.
    (f) Restrictions on public access. The Federal Freedom of 
Information Act (5 U.S.C. 552) does not apply to records Unless required 
by Federal, State, or local law, grantees and subgrantees are not 
required to permit public access to their records.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6201, Feb. 21, 1992]



Sec. 33.43  Enforcement.

    (a) Remedies for noncompliance. If a grantee or subgrantee 
materially fails to comply with any term of an award, whether stated in 
a Federal statute or regulation, an assurance, in a State plan or 
application, a notice of award, or elsewhere, the awarding agency may 
take one or more of the following actions, as appropriate in the 
circumstances:
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the grantee or subgrantee or more severe enforcement 
action by the awarding agency,
    (2) Disallow (that is, deny both use of funds and matching credit 
for) all or part of the cost of the activity or action not in 
compliance,
    (3) Wholly or partly suspend or terminate the current award for the 
grantee's or subgrantee's program,
    (4) Withhold further awards for the program, or
    (5) Take other remedies that may be legally available.
    (b) Hearings, appeals. In taking an enforcement action, the awarding 
agency will provide the grantee or subgrantee an opportunity for such 
hearing, appeal, or other administrative proceeding to which the grantee 
or subgrantee

[[Page 139]]

is entitled under any statute or regulation applicable to the action 
involved.
    (c) Effects of suspension and termination. Costs of grantee or 
subgrantee resulting from obligations incurred by the grantee or 
subgrantee during a suspension or after termination of an award are not 
allowable unless the awarding agency expressly authorizes them in the 
notice of suspension or termination or subsequently. Other grantee or 
subgrantee costs during suspension or after termination which are 
necessary and not reasonably avoidable are allowable if:
    (1) The costs result from obligations which were properly incurred 
by the grantee or subgrantee before the effective date of suspension or 
termination, are not in anticipation of it, and, in the case of a 
termination, are noncancellable, and,
    (2) The costs would be allowable if the award were not suspended or 
expired normally at the end of the funding period in which the 
termination takes effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude grantee or subgrantee from being subject to 
``Debarment and Suspension'' under E.O. 12549 (see Sec. 33.35).
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6201, Feb. 21, 1992]



Sec. 33.44  Termination for convenience.

    Except as provided in Sec. 33.43 awards may be terminated in whole 
or in part only as follows:
    (a) By the awarding agency with the consent of the grantee or 
subgrantee in which case the two parties shall agree upon the 
termination conditions, including the effective date and in the case of 
partial termination, the portion to be terminated, or
    (b) By the grantee or subgrantee upon written notification to the 
awarding agency, setting forth the reasons for such termination, the 
effective date, and in the case of partial termination, the portion to 
be terminated. However, if, in the case of a partial termination, the 
awarding agency determines that the remaining portion of the award will 
not accomplish the purposes for which the award was made, the awarding 
agency may terminate the award in its entirety under either Sec. 33.43 
or paragraph (a) of this section.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6201, Feb. 21, 1992]



                 Subpart D--After-The-Grant Requirements



Sec. 33.50  Closeout.

    (a) General. The Federal agency will close out the award when it 
determines that all applicable administrative actions and all required 
work of the grant has been completed.
    (b) Reports. Within 90 days after the expiration or termination of 
the grant, the grantee must submit all financial, performance, and other 
reports required as a condition of the grant. Upon request by the 
grantee, Federal agencies may extend this timeframe. These may include 
but are not limited to:
    (1) Final performance or progress report.
    (2) Financial Status Report (SF 269) or Outlay Report and Request 
for Reimbursement for Construction Programs (SF-271) (as applicable).
    (3) Final request for payment (SF-270) (if applicable).
    (4) Invention disclosure (if applicable).
    (5) Federally-owned property report:

In accordance with Sec. 33.32(f), a grantee must submit an inventory of 
all federally owned property (as distinct from property acquired with 
grant funds) for which it is accountable and request disposition 
instructions from the Federal agency of property no longer needed.
    (c) Cost adjustment. The Federal agency will, within 90 days after 
receipt of reports in paragraph (b) of this section, make upward or 
downward adjustments to the allowable costs.
    (d) Cash adjustments. (1) The Federal agency will make prompt 
payment to the grantee for allowable reimbursable costs.
    (2) The grantee must immediately refund to the Federal agency any 
balance of unobligated (unencumbered) cash

[[Page 140]]

advanced that is not authorized to be retained for use on other grants.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6201, Feb. 21, 1992]



Sec. 33.51  Later disallowances and adjustments.

    The closeout of a grant does not affect:
    (a) The Federal agency's right to disallow costs and recover funds 
on the basis of a later audit or other review;
    (b) The grantee's obligation to return any funds due as a result of 
later refunds, corrections, or other transactions;
    (c) Records retention as required in Sec. 33.42;
    (d) Property management requirements in Secs. 33.31 and 33.32; and
    (e) Audit requirements in Sec. 33.26.
[53 FR 8070 and 8087, Mar. 11, 1988. Redesignated and amended at 57 FR 
6199 and 6201, Feb. 21, 1992]



Sec. 33.52  Collection of amounts due.

    (a) Any funds paid to a grantee in excess of the amount to which the 
grantee is finally determined to be entitled under the terms of the 
award constitute a debt to the Federal Government. If not paid within a 
reasonable period after demand, the Federal agency may reduce the debt 
by:
    (1) Making an adminstrative offset against other requests for 
reimbursements,
    (2) Withholding advance payments otherwise due to the grantee, or
    (3) Other action permitted by law.
    (b) Except where otherwise provided by statutes or regulations, the 
Federal agency will charge interest on an overdue debt in accordance 
with the Federal Claims Collection Standards (4 CFR Ch. II). The date 
from which interest is computed is not extended by litigation or the 
filing of any form of appeal.



                    Subpart E--Entitlement [Reserved]



PART 34--ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH FOR-PROFIT ORGANIZATIONS--Table of Contents




                           Subpart A--General

Sec.
34.1  Purpose.
34.2  Definitions.
34.3  Deviations.
34.4  Special award conditions.

                   Subpart B--Post-Award Requirements

                    Financial and Program Management

34.10  Purpose of financial and program management.
34.11  Standards for financial management systems.
34.12  Payment.
34.13  Cost sharing or matching.
34.14  Program income.
34.15  Revision of budget and program plans.
34.16  Audits.
34.17  Allowable costs.
34.18  Fee and profit.

                           Property Standards

34.20  Purpose of property standards.
34.21  Real property and equipment.
34.22  Federally owned property.
34.23  Property management system.
34.24  Supplies.
34.25  Intellectual property developed or produced under awards.

                          Procurement Standards

34.30  Purpose of procurement standards.
34.31  Requirements.

                           Reports and Records

34.40  Purpose of reports and records.
34.41  Monitoring and reporting program and financial performance.
34.42  Retention and access requirements for records.

                       Termination and Enforcement

34.50  Purpose of termination and enforcement.
34.51  Termination.
34.52  Enforcement.
34.53  Disputes and appeals.

                 Subpart C--After-the-Award Requirements

34.60  Purpose.
34.61  Closeout procedures.
34.62  Subsequent adjustments and continuing responsibilities.
34.63  Collection of amounts due.

[[Page 141]]


Appendix A to Part 34--Contract Provisions

    Authority:  5 U.S.C. 301 and 10 U.S.C. 113.

    Source: 63 FR 12204, Mar. 12, 1998, unless otherwise noted.



                           Subpart A--General



Sec. 34.1  Purpose.

    (a) This part prescribes administrative requirements for awards to 
for-profit organizations.
    (b) Applicability to prime awards and subawards is as follows:
    (1) Prime awards. DoD Components shall apply the provisions of this 
part to awards to for-profit organizations. DoD Components shall not 
impose requirements that are in addition to, or inconsistent with, the 
requirements provided in this part, except:
    (i) In accordance with the deviation procedures or special award 
conditions in Sec. 34.3 or Sec. 34.4, respectively; or
    (ii) As required by Federal statute, Executive order, or Federal 
regulation implementing a statute or Executive order.
    (2) Subawards. (i) Any legal entity (including any State, local 
government, university or other nonprofit organization, as well as any 
for-profit entity) that receives an award from a DoD Component shall 
apply the provisions of this part to subawards with for-profit 
organizations. It should be noted that subawards (see definition in 
Sec. 34.2) are financial assistance for substantive programmatic 
performance and do not include recipients' procurement of goods and 
services.
    (ii) For-profit organizations that receive prime awards covered by 
this part shall apply to each subaward the administrative requirements 
that are applicable to the particular type of subrecipient (e.g., 32 CFR 
part 33 specifies requirements for subrecipients that are States or 
local governments, and 32 CFR part 32 contains requirements for 
universities or other nonprofit organizations).



Sec. 34.2  Definitions.

    The following are definitions of terms as used in this part. Grants 
officers are cautioned that terms may be defined differently in this 
part than they are in other parts of the DoD Grant and Agreement 
Regulations (DoDGARs).
    Advance. A payment made by Treasury check or other appropriate 
payment mechanism to a recipient upon its request either before outlays 
are made by the recipient or through the use of predetermined payment 
schedules.
    Award. A grant or cooperative agreement.
    Cash contributions. The recipient's cash outlay, including the 
outlay of money contributed to the recipient by third parties.
    Closeout. The process by which the grants officer administering an 
award made by a DoD Component determines that all applicable 
administrative actions and all required work of the award have been 
completed by the recipient and DoD Component.
    Contract. Either:
    (1) A procurement contract made by a recipient under a DoD 
Component's award or by a subrecipient under a subaward; or
    (2) A procurement subcontract under a contract awarded by a 
recipient or subrecipient.
    Cost sharing or matching. That portion of project or program costs 
not borne by the Federal Government.
    Disallowed costs. Those charges to an award that the grants officer 
administering an award made by a DoD Component determines to be 
unallowable, in accordance with the applicable Federal cost principles 
or other terms and conditions contained in the award.
    DoD Component. A Military Department, Defense Agency, DoD Field 
Activity, or organization within the Office of the Secretary of Defense 
that provides or administers an award to a recipient.
    Equipment. Tangible nonexpendable personal property charged directly 
to the award having a useful life of more than one year and an 
acquisition cost of $5,000 or more per unit. That definition applies for 
the purposes of the Federal administrative requirements in this part. 
However, the recipient's policy may be to use a lower dollar value for 
defining ``equipment,'' and

[[Page 142]]

nothing in this part should be construed as requiring the recipient to 
establish a higher limit for purposes other than the administrative 
requirements in this part.
    Excess property. Property under the control of any DoD Component 
that, as determined by the head thereof, is no longer required for its 
needs or the discharge of its responsibilities.
    Expenditures. See the definition for outlays in this section.
    Federally owned property. Property in the possession of, or directly 
acquired by, the Government and subsequently made available to the 
recipient.
    Funding period. The period of time when Federal funding is available 
for obligation by the recipient.
    Intellectual property. Intangible personal property such as patents 
and patent applications, trademarks, copyrights, technical data, and 
software rights.
    Obligations. The amounts of orders placed, contracts and grants 
awarded, services received and similar transactions during a given 
period that require payment by the recipient during the same or a future 
period.
    Outlays or expenditures. Charges made to the project or program. 
They may be reported on a cash or accrual basis. For reports prepared on 
a cash basis, outlays are the sum of cash disbursements for direct 
charges for goods and services, the amount of indirect expense charged, 
the value of third party in-kind contributions applied and the amount of 
cash advances and payments made to subrecipients. For reports prepared 
on an accrual basis, outlays are the sum of cash disbursements for 
direct charges for goods and services, the amount of indirect expense 
incurred, the value of in-kind contributions applied, and the net 
increase (or decrease) in the amounts owed by the recipient for goods 
and other property received, for services performed by employees, 
contractors, subrecipients and other payees and other amounts becoming 
owed under programs for which no current services or performance are 
required.
    Personal property. Property of any kind except real property. It may 
be:
    (1) Tangible, having physical existence (i.e., equipment and 
supplies); or
    (2) Intangible, having no physical existence, such as patents, 
copyrights, data and software.
    Prior approval. Written or electronic approval by an authorized 
official evidencing prior consent.
    Program income. Gross income earned by the recipient that is 
directly generated by a supported activity or earned as a result of the 
award. Program income includes, but is not limited to, income from fees 
for services performed, the use or rental of real or personal property 
acquired under federally-funded projects, the sale of commodities or 
items fabricated under an award, license fees and royalties on patents 
and copyrights, and interest on loans made with award funds. Interest 
earned on advances of Federal funds is not program income. Except as 
otherwise provided in program regulations or the terms and conditions of 
the award, program income does not include the receipt of principal on 
loans, rebates, credits, discounts, etc., or interest earned on any of 
them.
    Project costs. All allowable costs, as set forth in the applicable 
Federal cost principles, incurred by a recipient and the value of the 
contributions made by third parties in accomplishing the objectives of 
the award during the project period.
    Project period. The period established in the award document during 
which Federal sponsorship begins and ends.
    Property. Real property and personal property (equipment, supplies, 
and intellectual property), unless stated otherwise.
    Real property. Land, including land improvements, structures and 
appurtenances thereto, but excludes movable machinery and equipment.
    Recipient. A for-profit organization receiving an award directly 
from a DoD Component to carry out a project or program.
    Research. Basic, applied, and advanced research activities. Basic 
research is defined as efforts directed toward increasing knowledge or 
understanding in science and engineering. Applied research is defined as 
efforts that attempt to determine and exploit the potential of 
scientific discoveries or improvements in technology, such as new 
materials, devices, methods,

[[Page 143]]

and processes. ``Advanced research,'' advanced technology development 
that creates new technology or demonstrates the viability of applying 
existing technology to new products and processes in a general way, is 
most closely analogous to precommercialization or precompetitive 
technology development in the commercial sector (it does not include 
development of military systems and hardware where specific requirements 
have been defined).
    Small award. An award not exceeding the simplified acquisition 
threshold fixed at 41 U.S.C. 403(11) (currently $100,000).
    Small business concern. A concern, including its affiliates, that is 
independently owned and operated, not dominant in the field of operation 
in which it has applied for an award, and qualified as a small business 
under the criteria and size standards in 13 CFR part 121. For more 
details, grants officers should see 48 CFR part 19 in the ``Federal 
Acquisition Regulation.''
    Subaward. Financial assistance in the form of money, or property in 
lieu of money, provided under an award by a recipient to an eligible 
subrecipient or by a subrecipient to a lower tier subrecipient. The term 
includes financial assistance when provided by any legal agreement, even 
if the agreement is called a contract, but the term includes neither 
procurement of goods and services nor any form of assistance which is 
excluded from the definition of ``award'' in this section.
    Subrecipient. The legal entity to which a subaward is made and which 
is accountable to the recipient for the use of the funds provided.
    Supplies. Tangible expendable personal property that is charged 
directly to the award and that has a useful life of less than one year 
or an acquisition cost of less than $5000 per unit.
    Suspension. An action by a DoD Component that temporarily withdraws 
Federal sponsorship under an award, pending corrective action by the 
recipient or pending a decision to terminate the award by the DoD 
Component. Suspension of an award is a separate action from suspension 
of a recipient under 32 CFR part 25.
    Termination. The cancellation of an award, in whole or in part, 
under an agreement at any time prior to either:
    (1) The date on which all work under an award is completed; or
    (2) The date on which Federal sponsorship ends, as given on the 
award document or any supplement or amendment thereto.
    Third party in-kind contributions. The value of non-cash 
contributions provided by non-Federal third parties. Third party in-kind 
contributions may be in the form of real property, equipment, supplies 
and other expendable property, and the value of goods and services 
directly benefiting and specifically identifiable to the project or 
program.
    Unobligated balance. The portion of the funds authorized by a DoD 
Component that has not been obligated by the recipient and is determined 
by deducting the cumulative obligations from the cumulative funds 
authorized.



Sec. 34.3  Deviations.

    (a) Individual deviations. Individual deviations affecting only one 
award may be approved by DoD Components in accordance with procedures 
stated in 32 CFR 21.125(a).
    (b) Small awards. DoD Components may apply less restrictive 
requirements than the provisions of this part when awarding small 
awards, except for those requirements which are statutory.
    (c) Other class deviations. For classes of awards other than small 
awards, the Director, Defense Research and Engineering, or his or her 
designee, may grant exceptions from the requirements of this part when 
exceptions are not prohibited by statute. DoD Components shall request 
approval for such deviations in accordance with 32 CFR 21.125 (b) and 
(c).



Sec. 34.4  Special award conditions.

    (a) Grants officers may impose additional requirements as needed, 
over and above those provided in this part, if an applicant or 
recipient:
    (1) Has a history of poor performance;
    (2) Is not financially stable;
    (3) Has a management system that does not meet the standards 
prescribed in this part;

[[Page 144]]

    (4) Has not conformed to the terms and conditions of a previous 
award; or
    (5) Is not otherwise responsible.
    (b) Before imposing additional requirements, DoD Components shall 
notify the applicant or recipient in writing as to:
    (1) The nature of the additional requirements;
    (2) The reason why the additional requirements are being imposed;
    (3) The nature of the corrective action needed;
    (4) The time allowed for completing the corrective actions; and
    (5) The method for requesting reconsideration of the additional 
requirements imposed.
    (c) Any special conditions shall be promptly removed once the 
conditions that prompted them have been corrected.
    (d) Grants officers:
    (1) Should coordinate the imposition and removal of special award 
conditions with the cognizant grants administration office identified in 
32 CFR 22.710.
    (2) Shall include in the award file the written notification to the 
recipient, described in paragraph (b) of this section, and the 
documentation required by 32 CFR 22.410(b).



                   Subpart B--Post-award Requirements

                    Financial and Program Management



Sec. 34.10  Purpose of financial and program management.

    Sections 34.11 through 34.17 prescribe standards for financial 
management systems; methods for making payments; and rules for cost 
sharing and matching, program income, revisions to budgets and program 
plans, audits, allowable costs, and fee and profit.



Sec. 34.11  Standards for financial management systems.

    (a) Recipients shall be allowed and encouraged to use existing 
financial management systems established for doing business in the 
commercial marketplace, to the extent that the systems comply with 
Generally Accepted Accounting Principles (GAAP) and the minimum 
standards in this section. As a minimum, a recipient's financial 
management system shall provide:
    (1) Effective control of all funds. Control systems must be adequate 
to ensure that costs charged to Federal funds and those counted as the 
recipient's cost share or match are consistent with requirements for 
cost reasonableness, allowability, and allocability in the applicable 
cost principles (see Sec. 34.17) and in the terms and conditions of the 
award.
    (2) Accurate, current and complete records that document for each 
project funded wholly or in part with Federal funds the source and 
application of the Federal funds and the recipient's required cost share 
or match. These records shall:
    (i) Contain information about receipts, authorizations, assets, 
expenditures, program income, and interest.
    (ii) Be adequate to make comparisons of outlays with budgeted 
amounts for each award (as required for programmatic and financial 
reporting under Sec. 34.41. Where appropriate, financial information 
should be related to performance and unit cost data. Note that unit cost 
data are generally not appropriate for awards that support research.
    (3) To the extent that advance payments are authorized under 
Sec. 34.12, procedures that minimize the time elapsing between the 
transfer of funds to the recipient from the Government and the 
recipient's disbursement of the funds for program purposes.
    (4) The recipient shall have a system to support charges to Federal 
awards for salaries and wages, whether treated as direct or indirect 
costs. Where employees work on multiple activities or cost objectives, a 
distribution of their salaries and wages will be supported by personnel 
activity reports which must:
    (i) Reflect an after the fact distribution of the actual activity of 
each employee.
    (ii) Account for the total activity for which each employee is 
compensated.
    (iii) Be prepared at least monthly, and coincide with one or more 
pay periods.
    (b) Where the Federal Government guarantees or insures the repayment 
of money borrowed by the recipient, the DoD Component, at its 
discretion, may

[[Page 145]]

require adequate bonding and insurance if the bonding and insurance 
requirements of the recipient are not deemed adequate to protect the 
interest of the Federal Government.
    (c) The DoD Component may require adequate fidelity bond coverage 
where the recipient lacks sufficient coverage to protect the Federal 
Government's interest.
    (d) Where bonds are required in the situations described above, the 
bonds shall be obtained from companies holding certificates of authority 
as acceptable sureties, as prescribed in 31 CFR part 223, ``Surety 
Companies Doing Business with the United States.''



Sec. 34.12  Payment.

    (a) Methods available. Payment methods for awards with for-profit 
organizations are:
    (1) Reimbursement. Under this method, the recipient requests 
reimbursement for costs incurred during a time period. In cases where 
the recipient submits each request for payment to the grants officer, 
the DoD payment office reimburses the recipient by electronic funds 
transfer or check after approval of the request by the grants officer 
designated to do so.
    (2) Advance payments. Under this method, a DoD Component makes a 
payment to a recipient based upon projections of the recipient's cash 
needs. The payment generally is made upon the recipient's request, 
although predetermined payment schedules may be used when the timing of 
the recipient's needs to disburse funds can be predicted in advance with 
sufficient accuracy to ensure compliance with paragraph (b)(2)(iii) of 
this section.
    (b) Selecting a method. (1) The preferred payment method is the 
reimbursement method, as described in paragraph (a)(1) of this section
    (2) Advance payments, as described in paragraph (a)(2) of this 
section, may be used in exceptional circumstances, subject to the 
following conditions:
    (i) The grants officer, in consultation with the program official, 
must judge that advance payments are necessary or will materially 
contribute to the probability of success of the project contemplated 
under the award (e.g., as startup funds for a project performed by a 
newly formed company). The rationale for the judgment shall be 
documented in the award file.
    (ii) Cash advances shall be limited to the minimum amounts needed to 
carry out the program.
    (iii) Recipients and the DoD Component shall maintain procedures to 
ensure that the timing of cash advances is as close as is 
administratively feasible to the recipients' disbursements of the funds 
for program purposes, including direct program or project costs and the 
proportionate share of any allowable indirect costs.
    (iv) Recipients shall maintain advance payments of Federal funds in 
interest-bearing accounts, and remit annually the interest earned to the 
administrative grants officer responsible for post-award administration 
(the grants officer shall forward the payment to the responsible payment 
office, for return to the Department of Treasury's miscellaneous 
receipts account), unless one of the following applies:
    (A) The recipient receives less than $120,000 in Federal awards per 
year.
    (B) The best reasonably available interest bearing account would not 
be expected to earn interest in excess of $250 per year on Federal cash 
balances.
    (C) The depository would require an average or minimum balance so 
high that it would not be feasible within the expected Federal and non-
Federal cash resources.
    (c) Frequency of payments. For either reimbursements or advance 
payments, recipients shall be authorized to submit requests for payment 
at least monthly.
    (d) Forms for requesting payment. DoD Components may authorize 
recipients

[[Page 146]]

to use the SF-270,1 ``Request for Advance or Reimbursement;'' 
the SF-271,2 ``Outlay Report and Request for Reimbursement 
for Construction Programs;'' or prescribe other forms or formats as 
necessary.
---------------------------------------------------------------------------

    \1\ For copies of Standard Forms listed in this part, contact 
regional grants administration offices of the Office of Naval Research. 
Addresses for the offices are listed in the ``DoD Directory of Contract 
Administration Services Components,'' DLAH 4105.4, which can be obtained 
from either: Defense Logistics Agency, Publications Distribution 
Division (DASC-WDM), 8725 John J. Kingman Rd., Suite 0119, Fort Belvoir, 
VA 22060-6220; or the Defense Contract Management Command home page at 
http://www.dcmc.dcrb.dla.mil.
    \2\ See footnote 1 to this paragraph (d).
---------------------------------------------------------------------------

    (e) Timeliness of payments. Payments normally will be made within 30 
calendar days of the receipt of a recipient's request for reimbursement 
or advance by the office designated to receive the request (for further 
information about timeframes for payments, see 32 CFR 22.810(c)(3)(ii)).
    (f) Precedence of other available funds. Recipients shall disburse 
funds available from program income, rebates, refunds, contract 
settlements, audit recoveries, and interest earned on such funds before 
requesting additional cash payments.
    (g) Withholding of payments. Unless otherwise required by statute, 
grants officers shall not withhold payments for proper charges made by 
recipients during the project period for reasons other than the 
following:
    (1) A recipient has failed to comply with project objectives, the 
terms and conditions of the award, or Federal reporting requirements, in 
which case the grants officer may suspend payments in accordance with 
Sec. 34.52.
    (2) The recipient is delinquent on a debt to the United States (see 
definitions of ``debt'' and ``delinquent debt'' in 32 CFR 22.105). In 
that case, the grants officer may, upon reasonable notice, withhold 
payments for obligations incurred after a specified date, until the debt 
is resolved.



Sec. 34.13  Cost sharing or matching.

    (a) Acceptable contributions. All contributions, including cash 
contributions and third party in-kind contributions, shall be accepted 
as part of the recipient's cost sharing or matching when such 
contributions meet all of the following criteria:
    (1) They are verifiable from the recipient's records.
    (2) They are not included as contributions for any other federally-
assisted project or program.
    (3) They are necessary and reasonable for proper and efficient 
accomplishment of project or program objectives.
    (4) They are allowable under Sec. 34.17.
    (5) They are not paid by the Federal Government under another award, 
except:
    (i) Costs that are authorized by Federal statute to be used for cost 
sharing or matching; or
    (ii) Independent research and development (IR&D) costs. In 
accordance with the for-profit cost principle in 48 CFR 31.205-18(e), 
use of IR&D as cost sharing is permitted, whether or not the Government 
decides at a later date to reimburse any of the IR&D as allowable 
indirect costs. In such cases, the IR&D must meet all of the criteria in 
paragraphs (a) (1) through (4) and (a) (6) through (8) of this section.
    (6) They are provided for in the approved budget, when approval of 
the budget is required by the DoD Component.
    (7) If they are real property or equipment, whether purchased with 
recipient's funds or donated by third parties, they must have the grants 
officer's prior approval if the contributions' value is to exceed 
depreciation or use charges during the project period (paragraphs (b)(1) 
and (b)(4)(ii) of this section discuss the limited circumstances under 
which a grants officer may approve higher values). If a DoD Component 
requires approval of a

[[Page 147]]

recipient's budget (see paragraph (a)(6) of this section), the grants 
officer's approval of the budget satisfies this prior approval 
requirement, for real property or equipment items listed in the budget.
    (8) They conform to other provisions of this part, as applicable.
    (b) Valuing and documenting contributions--(1) Valuing recipient's 
property or services of recipient's employees. Values shall be 
established in accordance with the applicable cost principles in 
Sec. 34.17, which means that amounts chargeable to the project are 
determined on the basis of costs incurred. For real property or 
equipment used on the project, the cost principles authorize 
depreciation or use charges. The full value of the item may be applied 
when the item will be consumed in the performance of the award or fully 
depreciated by the end of the award. In cases where the full value of a 
donated capital asset is to be applied as cost sharing or matching, that 
full value shall be the lesser of the following:
    (i) The certified value of the remaining life of the property 
recorded in the recipient's accounting records at the time of donation; 
or
    (ii) The current fair market value. However, when there is 
sufficient justification, the grants officer may approve the use of the 
current fair market value of the donated property, even if it exceeds 
the certified value at the time of donation to the project. The grants 
officer may accept the use of any reasonable basis for determining the 
fair market value of the property.
    (2) Valuing services of others' employees. When an employer other 
than the recipient furnishes the services of an employee, those services 
shall be valued at the employee's regular rate of pay plus an amount of 
fringe benefits and overhead (at an overhead rate appropriate for the 
location where the services are performed) provided these services are 
in the same skill for which the employee is normally paid.
    (3) Valuing volunteer services. Volunteer services furnished by 
professional and technical personnel, consultants, and other skilled and 
unskilled labor may be counted as cost sharing or matching if the 
service is an integral and necessary part of an approved project or 
program. Rates for volunteer services shall be consistent with those 
paid for similar work in the recipient's organization. In those 
instances in which the required skills are not found in the recipient 
organization, rates shall be consistent with those paid for similar work 
in the labor market in which the recipient competes for the kind of 
services involved. In either case, paid fringe benefits that are 
reasonable, allowable, and allocable may be included in the valuation.
    (4) Valuing property donated by third parties. (i) Donated supplies 
may include such items as office supplies or laboratory supplies. Value 
assessed to donated supplies included in the cost sharing or matching 
share shall be reasonable and shall not exceed the fair market value of 
the property at the time of the donation.
    (ii) Normally only depreciation or use charges for equipment and 
buildings may be applied. However, the fair rental charges for land and 
the full value of equipment or other capital assets may be allowed, when 
they will be consumed in the performance of the award or fully 
depreciated by the end of the award, provided that the grants officer 
has approved the charges. When use charges are applied, values shall be 
determined in accordance with the usual accounting policies of the 
recipient, with the following qualifications:
    (A) The value of donated space shall not exceed the fair rental 
value of comparable space as established by an independent appraisal of 
comparable space and facilities in a privately-owned building in the 
same locality.
    (B) The value of loaned equipment shall not exceed its fair rental 
value.
    (5) Documentation. The following requirements pertain to the 
recipient's supporting records for in-kind contributions from third 
parties:
    (i) Volunteer services shall be documented and, to the extent 
feasible, supported by the same methods used by the recipient for its 
own employees.
    (ii) The basis for determining the valuation for personal services 
and property shall be documented.

[[Page 148]]



Sec. 34.14  Program income.

    (a) DoD Components shall apply the standards in this section to the 
disposition of program income from projects financed in whole or in part 
with Federal funds.
    (b) Recipients shall have no obligation to the Government, unless 
the terms and conditions of the award provide otherwise, for program 
income earned:
    (1) From license fees and royalties for copyrighted material, 
patents, patent applications, trademarks, and inventions produced under 
an award. Note, however, that the Patent and Trademark Amendments (35 
U.S.C. Chapter 18), as implemented in Sec. 34.25, apply to inventions 
made under a research award.
    (2) After the end of the project period. If a grants officer 
anticipates that an award is likely to generate program income after the 
end of the project period, the grants officer should indicate in the 
award document whether the recipient will have any obligation to the 
Federal Government with respect to such income.
    (c) If authorized by the terms and conditions of the award, costs 
incident to the generation of program income may be deducted from gross 
income to determine program income, provided these costs have not been 
charged to the award.
    (d) Other than any program income excluded pursuant to paragraphs 
(b) and (c) of this section, program income earned during the project 
period shall be retained by the recipient and used in one or more of the 
following ways, as specified in program regulations or the terms and 
conditions of the award:
    (1) Added to funds committed to the project by the DoD Component and 
recipient and used to further eligible project or program objectives.
    (2) Used to finance the non-Federal share of the project or program.
    (3) Deducted from the total project or program allowable cost in 
determining the net allowable costs on which the Federal share of costs 
is based.
    (e) If the terms and conditions of an award authorize the 
disposition of program income as described in paragraph (d)(1) or (d)(2) 
of this section, and stipulate a limit on the amounts that may be used 
in those ways, program income in excess of the stipulated limits shall 
be used in accordance with paragraph (d)(3) of this section.
    (f) In the event that the terms and conditions of the award do not 
specify how program income is to be used, paragraph (d)(3) of this 
section shall apply automatically to all projects or programs except 
research. For awards that support research, paragraph (d)(1) of this 
section shall apply automatically unless the terms and conditions 
specify another alternative or the recipient is subject to special award 
conditions, as indicated in Sec. 34.4.
    (g) Proceeds from the sale of property that is acquired, rather than 
fabricated, under an award are not program income and shall be handled 
in accordance with the requirements of the Property Standards (see 
Secs. 34.20 through 34.25).



Sec. 34.15  Revision of budget and program plans.

    (a) The budget plan is the financial expression of the project or 
program as approved during the award process. It may include either the 
sum of the Federal and non-Federal shares, or only the Federal share, 
depending upon DoD Component requirements. It shall be related to 
performance for program evaluation purposes whenever appropriate.
    (b) Recipients are required to report deviations from budget and 
program plans, and request prior approvals for budget and program plan 
revisions, in accordance with this section.
    (c) Recipients shall immediately request, in writing, prior approval 
from the cognizant grants officer when there is reason to believe that 
within the next seven calendar days a programmatic or budgetary revision 
will be necessary for certain reasons, as follows:
    (1) The recipient always must obtain the grants officer's prior 
approval when a revision is necessary for either of the following two 
reasons (i.e., these two requirements for prior approval may never be 
waived):
    (i) A change in the scope or the objective of the project or program 
(even if there is no associated budget revision requiring prior written 
approval).

[[Page 149]]

    (ii) A need for additional Federal funding.
    (2) The recipient must obtain the grants officer's prior approval 
when a revision is necessary for any of the following six reasons, 
unless the requirement for prior approval is waived in the terms and 
conditions of the award (i.e., if the award document is silent, these 
prior approvals are required):
    (i) A change in a key person specified in the application or award 
document.
    (ii) The absence for more than three months, or a 25 percent 
reduction in time devoted to the project, by the approved project 
director or principal investigator.
    (iii) The inclusion of any additional costs that require prior 
approval in accordance with applicable cost principles for Federal funds 
and recipients' cost share or match, in Sec. 34.17 and Sec. 34.13, 
respectively.
    (iv) The inclusion of pre-award costs. All such costs are incurred 
at the recipient's risk (i.e., the DoD Component is under no obligation 
to reimburse such costs if for any reason the recipient does not receive 
an award, or if the award is less than anticipated and inadequate to 
cover such costs).
    (v) A ``no-cost'' extension of the project period that does not 
require additional Federal funds and does not change the approved 
objectives or scope of the project.
    (vi) Any subaward, transfer or contracting out of substantive 
program performance under an award, unless described in the application 
and funded in the approved awards. This provision does not apply to the 
purchase of supplies, material, or general support services, except that 
procurement of equipment or other capital items of property always is 
subject to the grants officer's prior approval under Sec. 34.21(a), if 
it is to be purchased with Federal funds, or Sec. 34.13(a)(7), if it is 
to be used as cost sharing or matching.
    (3) The recipient also must obtain the grants officer's prior 
approval when a revision is necessary for either of the following 
reasons, if specifically required in the terms and conditions of the 
award document (i.e., if the award document is silent, these prior 
approvals are not required):
    (i) The transfer of funds among direct cost categories, functions 
and activities for awards in which the Federal share of the project 
exceeds $100,000 and the cumulative amount of such transfers exceeds or 
is expected to exceed 10 percent of the total budget as last approved by 
the DoD Component. No DoD Component shall permit a transfer that would 
cause any Federal appropriation or part thereof to be used for purposes 
other than those consistent with the original intent of the 
appropriation.
    (ii) For awards that provide support for both construction and 
nonconstruction work, any fund or budget transfers between the two types 
of work supported.
    (d) Within 30 calendar days from the date of receipt of the 
recipient's request for budget revisions, the grants officer shall 
review the request and notify the recipient whether the budget revisions 
have been approved. If the revision is still under consideration at the 
end of 30 calendar days, the grants officer shall inform the recipient 
in writing of the date when the recipient may expect the decision.



Sec. 34.16  Audits.

    (a) Any recipient that expends $300,000 or more in a year under 
Federal awards shall have an audit made for that year by an independent 
auditor, in accordance with paragraph (b) of this section. The audit 
generally should be made a part of the regularly scheduled, annual audit 
of the recipient's financial statements. However, it may be more 
economical in some cases to have the Federal awards separately audited, 
and a recipient may elect to do so, unless that option is precluded by 
award terms and conditions, or by Federal laws or regulations applicable 
to the program(s) under which the awards were made.
    (b) The auditor shall determine and report on whether:
    (1) The recipient has an internal control structure that provides 
reasonable assurance that it is managing Federal awards in compliance 
with Federal laws and regulations, and with the terms and conditions of 
the awards.
    (2) Based on a sampling of Federal award expenditures, the recipient 
has

[[Page 150]]

complied with laws, regulations, and award terms that may have a direct 
and material effect on Federal awards.
    (c) The recipient shall make the auditor's report available to DoD 
Components whose awards are affected.
    (d) The requirement for an annual independent audit is intended to 
ascertain the adequacy of the recipient's internal financial management 
systems and to curtail the unnecessary duplication and overlap that 
usually results when Federal agencies request audits of individual 
awards on a routine basis. Therefore, a grants officer:
    (1) Shall consider whether the independent audit satisfies his or 
her requirements, before requesting any additional audits; and
    (2) When requesting an additional audit, shall:
    (i) Limit the scope of such additional audit to areas not adequately 
addressed by the independent audit.
    (ii) Coordinate the audit request with the Federal agency with the 
predominant fiscal interest in the recipient, as the agency responsible 
for the scheduling and distribution of audits. If DoD has the 
predominant fiscal interest in the recipient, the Defense Contract 
Management Command (DCMC) is responsible for monitoring audits, ensuring 
resolution of audit findings, and distributing audit reports. When an 
additional audit is requested and DoD has the predominant fiscal 
interest in the recipient, DCMC shall, to the extent practicable, ensure 
that the additional audit builds upon the independent audit or other 
audits performed in accordance with this section.
    (e) There may be instances in which Federal auditors have recently 
performed audits, are performing audits, or are planning to perform 
audits, of a recipient. In these cases, the recipient and its Federal 
cognizant agency should seek to have the non-Federal, independent 
auditors work with the Federal auditors to develop a coordinated audit 
approach, to minimize duplication of audit work.
    (f) Audit costs (including a reasonable allocation of the costs of 
the audit of the recipient's financial statement, based on the relative 
benefit to the Government and the recipient) are allowable costs of DoD 
awards.



Sec. 34.17  Allowable costs.

    Allowability of costs shall be determined in accordance with the 
cost principles applicable to the type of entity incurring the costs, as 
follows:
    (a) For-profit organizations. Allowability of costs incurred by for-
profit organizations that are recipients of prime awards from DoD 
Components, and those that are subrecipients under prime awards to other 
organizations, is to be determined in accordance with:
    (1) The for-profit cost principles in 48 CFR parts 31 and 231 (in 
the Federal Acquisition Regulation, or FAR, and the Defense Federal 
Acquisition Regulation Supplement, or DFARS, respectively).
    (2) The supplemental information on allowability of audit costs, in 
Sec. 34.16(f).
    (b) Other types of organizations. Allowability of costs incurred by 
other types of organizations that may be subrecipients under a prime 
award to a for-profit organization is determined as follows:
    (1) Institutions of higher education. Allowability is determined in 
accordance with OMB Circular A-21,\3\ `` Cost Principles for Educational 
Institutions.''
---------------------------------------------------------------------------

    \3\ For copies of the Circular, contact the Office of Management and 
Budget, EOP Publications, 725 17th St. N.W., New Executive Office 
Building, Washington, D.C. 20503.
---------------------------------------------------------------------------

    (2) Other nonprofit organizations. Allowability is determined in 
accordance with OMB Circular A-122,\4\ ``Cost Principles for Non-Profit 
Organizations.'' Note that Attachment C of the Circular identifies 
selected nonprofit organizations for whom cost allowability is 
determined in accordance with the FAR cost principles for for-profit 
organizations.
---------------------------------------------------------------------------

    \4\ See footnote 3 to paragraph (b)(1) of this section.
---------------------------------------------------------------------------

    (3) Hospitals. Allowability is determined in accordance with the 
provisions of 45 CFR part 74, Appendix E, ``Principles for Determining 
Costs Applicable to Research and Development Under Grants and Contracts 
with Hospitals.''
    (4) Governmental organizations. Allowability for State, local, or 
federally recognized Indian tribal governments is determined in 
accordance with OMB

[[Page 151]]

Circular A-87,\5\ ``Cost Principles for State and Local Governments.''
---------------------------------------------------------------------------

    \5\ See footnote 3 to paragraph (b)(1) of this section.
---------------------------------------------------------------------------



Sec. 34.18  Fee and profit.

    In accordance with 32 CFR 22.205(b), grants and cooperative 
agreements shall not:
    (a) Provide for the payment of fee or profit to the recipient.
    (b) Be used to carry out programs where fee or profit is necessary 
to achieving program objectives.

                           Property Standards



Sec. 34.20  Purpose of property standards.

    Sections 34.21 through 34.25 set forth uniform standards for 
management, use, and disposition of property. DoD Components shall 
encourage recipients to use existing property-management systems, to the 
extent that the systems meet these minimum requirements.



Sec. 34.21  Real property and equipment.

    (a) Prior approval for acquisition with Federal funds. Recipients 
may purchase real property or equipment in whole or in part with Federal 
funds under an award only with the prior approval of the grants officer.
    (b) Title. Title to such real property or equipment shall vest in 
the recipient upon acquisition. Unless a statute specifically authorizes 
a DoD Component to vest title in the recipient without further 
obligation to the Government, and the DoD Component elects to do so, the 
title shall be a conditional title. Title shall vest in the recipient 
subject to the conditions that the recipient:
    (1) Use the real property or equipment for the authorized purposes 
of the project until funding for the project ceases, or until the 
property is no longer needed for the purposes of the project.
    (2) Not encumber the property without approval of the grants 
officer.
    (3) Use and dispose of the property in accordance with paragraphs 
(d) and (e) of this section.
    (c) Federal interest in real property or equipment offered as cost-
share. A recipient may offer the full value of real property or 
equipment that is purchased with recipient's funds or that is donated by 
a third party to meet a portion of any required cost sharing or 
matching, subject to the prior approval requirement in Sec. 34.13(a)(7). 
If a recipient does so, the Government has a financial interest in the 
property, a share of the property value attributable to the Federal 
participation in the project. The property therefore shall be considered 
as if it had been acquired in part with Federal funds, and shall be 
subject to the provisions of paragraphs (b)(1), (b)(2) and (b)(3) of 
this section, and to the provisions of Sec. 34.23.
    (d) Use. If real property or equipment is acquired in whole or in 
part with Federal funds under an award, and the award provides that 
title vests conditionally in the recipient, the real property or 
equipment is subject to the following:
    (1) During the time that the real property or equipment is used on 
the project or program for which it was acquired, the recipient shall 
make it available for use on other projects or programs, if such other 
use will not interfere with the work on the project or program for which 
the real property or equipment was originally acquired. Use of the real 
property or equipment on other projects will be in the following order 
of priority:
    (i) Activities sponsored by DoD Components' grants, cooperative 
agreements, or other assistance awards;
    (ii) Activities sponsored by other Federal agencies' grants, 
cooperative agreements, or other assistance awards;
    (iii) Activities under Federal procurement contracts, or activities 
not sponsored by any Federal agency. If so used, use charges shall be 
assessed to those activities. For real property or equipment, the use 
charges shall be at rates equivalent to those for which comparable real 
property or equipment may be leased. The use charges shall be treated as 
program income.
    (2) After Federal funding for the project ceases, or when the real 
property or equipment is no longer needed for the purposes of the 
project, the recipient may use the real property or

[[Page 152]]

equipment for other projects, insofar as:
    (i) There are Federally sponsored projects for which the real 
property or equipment may be used. If the only use for the real property 
or equipment is for projects that have no Federal sponsorship, the 
recipient shall proceed with disposition of the real property or 
equipment, in accordance with paragraph (e) of this section.
    (ii) The recipient obtains written approval from the grants officer 
to do so. The grants officer shall ensure that there is a formal change 
of accountability for the real property or equipment to a currently 
funded, Federal award.
    (iii) The recipient's use of the real property or equipment for 
other projects is in the same order of priority as described in 
paragraph (d)(1) of this section.
    (e) Disposition. (1) When an item of real property or equipment is 
no longer needed for Federally sponsored projects, the recipient shall 
proceed as follows:
    (i) If the property that is no longer needed is equipment (rather 
than real property), the recipient may wish to replace it with an item 
that is needed currently for the project. In that case, the recipient 
may use the original equipment as trade-in or sell it and use the 
proceeds to offset the costs of the replacement equipment, subject to 
the approval of the responsible agency (i.e., the DoD Component or the 
Federal agency to which the DoD Component delegated responsibility for 
administering the equipment).
    (ii) The recipient may elect to retain title, without further 
obligation to the Federal Government, by compensating the Federal 
Government for that percentage of the current fair market value of the 
real property or equipment that is attributable to the Federal 
participation in the project.
    (iii) If the recipient does not elect to retain title to real 
property or equipment (see paragraph (e)(1)(ii) of this section), or 
request approval to use equipment as trade-in or offset for replacement 
equipment (see paragraph (e)(1)(i) of this section), the recipient shall 
request disposition instructions from the responsible agency.
    (2) If a recipient requests disposition instructions, in accordance 
with paragraph (e)(1)(iii) of this section, the responsible grants 
officer shall:
    (i) For equipment (but not real property), consult with the Federal 
program manager and judge whether the age and nature of the equipment 
warrant a screening procedure, to determine whether the equipment is 
useful to a DoD Component or other Federal agency. If a screening 
procedure is warranted, the responsible agency shall determine whether 
the equipment can be used to meet a DoD Component's requirement. If no 
DoD requirement is found, the responsible agency shall report the 
availability of the equipment to the General Services Administration, to 
determine whether a requirement for the equipment exists in other 
Federal agencies.
    (ii) For either real property or equipment, issue instructions to 
the recipient for disposition of the property no later than 120 calendar 
days after the recipient's request. The grants officer's options for 
disposition are to direct the recipient to:
    (A) Transfer title to the real property or equipment to the Federal 
Government or to an eligible third party provided that, in such cases, 
the recipient shall be entitled to compensation for its attributable 
percentage of the current fair market value of the real property or 
equipment, plus any reasonable shipping or interim storage costs 
incurred. If title is transferred to the Federal Government, it shall be 
subject thereafter to provisions for Federally owned property in 
Sec. 34.22.
    (B) Sell the real property or equipment and pay the Federal 
Government for that percentage of the current fair market value of the 
property that is attributable to the Federal participation in the 
project (after deducting actual and reasonable selling and fix-up 
expenses, if any, from the sale proceeds). When the recipient is 
authorized or required to sell the real property or equipment, proper 
sales procedures shall be established that provide for competition to 
the extent practicable and result in the highest possible return.
    (3) If the responsible agency fails to issue disposition 
instructions within

[[Page 153]]

120 calendar days of the recipient's request, as described in paragraph 
(e)(2)(ii) of this section, the recipient shall dispose of the real 
property or equipment through the option described in paragraph 
(e)(2)(ii)(B) of this section.



Sec. 34.22  Federally owned property.

    (a) Annual inventory. Recipients shall submit annually an inventory 
listing of all Federally owned property in their custody (property 
furnished by the Federal Government, rather than acquired by the 
recipient with Federal funds under the award), to the DoD Component or 
other Federal agency responsible for administering the property under 
the award.
    (b) Use on other activities. (1) Use of federally owned property on 
other activities is permissible, if authorized by the DoD Component 
responsible for administering the award to which the property currently 
is charged.
    (2) Use on other activities will be in the following order of 
priority:
    (i) Activities sponsored by DoD Components' grants, cooperative 
agreements, or other assistance awards;
    (ii) Activities sponsored by other Federal agencies' grants, 
cooperative agreements, or other assistance awards;
    (iii) Activities under Federal procurement contracts, or activities 
not sponsored by any Federal agency. If so used, use charges shall be 
assessed to those activities. For real property or equipment, the use 
charges shall be at rates equivalent to those for which comparable real 
property or equipment may be leased. The use charges shall be treated as 
program income.
    (c) Disposition of property. Upon completion of the award, the 
recipient shall report the property to the responsible agency. The 
agency may:
    (1) Use the property to meet another Federal Government need (e.g, 
by transferring accountability for the property to another Federal award 
to the same recipient, or by directing the recipient to transfer the 
property to a Federal agency that needs the property, or to another 
recipient with a currently funded award).
    (2) Declare the property to be excess property and either:
    (i) Report the property to the General Services Administration, in 
accordance with the Federal Property and Administrative Services Act of 
1949 (40 U.S.C. 483(b)(2)), as implemented by General Services 
Administration regulations at 41 CFR 101-47.202; or
    (ii) Dispose of the property by alternative methods, if there is 
statutory authority to do so (e.g., DoD Components are authorized by 15 
U.S.C. 3710(i), the Federal Technology Transfer Act, to donate research 
equipment to educational and nonprofit organizations for the conduct of 
technical and scientific education and research activities. Such 
donations shall be in accordance with the DoD implementation of E.O. 
12999 (3 CFR, 1996 Comp., p. 180), ``Educational Technology: Ensuring 
Opportunity for All Children in the Next Century,'' as applicable.) 
Appropriate instructions shall be issued to the recipient by the 
responsible agency.



Sec. 34.23  Property management system.

    The recipient's property management system shall include the 
following, for property that is Federally owned, and for equipment that 
is acquired in whole or in part with Federal funds, or that is used as 
matching share:
    (a) Property records shall be maintained, to include the following 
information:
    (1) A description of the property.
    (2) Manufacturer's serial number, model number, Federal stock 
number, national stock number, or any other identification number.
    (3) Source of the property, including the award number.
    (4) Whether title vests in the recipient or the Federal Government.
    (5) Acquisition date (or date received, if the property was 
furnished by the Federal Government) and cost.
    (6) Information from which one can calculate the percentage of 
Federal participation in the cost of the property (not applicable to 
property furnished by the Federal Government).
    (7) The location and condition of the property and the date the 
information was reported.
    (8) Ultimate disposition data, including date of disposal and sales 
price or the method used to determine current

[[Page 154]]

fair market value where a recipient compensates the Federal Government 
for its share.
    (b) Federally owned equipment shall be marked, to indicate Federal 
ownership.
    (c) A physical inventory shall be taken and the results reconciled 
with the property records at least once every two years. Any differences 
between quantities determined by the physical inspection and those shown 
in the accounting records shall be investigated to determine the causes 
of the difference. The recipient shall, in connection with the 
inventory, verify the existence, current utilization, and continued need 
for the property.
    (d) A control system shall be in effect to insure adequate 
safeguards to prevent loss, damage, or theft of the property. Any loss, 
damage, or theft of property shall be investigated and fully documented; 
if the property was owned by the Federal Government, the recipient shall 
promptly notify the Federal agency responsible for administering the 
property.
    (e) Adequate maintenance procedures shall be implemented to keep the 
property in good condition.



Sec. 34.24  Supplies.

    (a) Title shall vest in the recipient upon acquisition for supplies 
acquired with Federal funds under an award.
    (b) Upon termination or completion of the project or program, the 
recipient shall retain any unused supplies. If the inventory of unused 
supplies exceeds $5,000 in total aggregate value and the items are not 
needed for any other Federally sponsored project or program, the 
recipient shall retain the items for use on non-Federal sponsored 
activities or sell them, but shall, in either case, compensate the 
Federal Government for its share.



Sec. 34.25  Intellectual property developed or produced under awards.

    (a) Patents. Grants and cooperative agreements with:
    (1) Small business concerns shall comply with 35 U.S.C. Chapter 18, 
as implemented by 37 CFR part 401, which applies to inventions made 
under grants and cooperative agreements with small business concerns for 
research and development. 37 CFR 401.14 provides a standard clause that 
is required in such grants and cooperative agreements in most cases, 37 
CFR 401.3 specifies when the clause shall be included, and 37 CFR 401.5 
specifies how the clause may be modified and tailored.
    (2) For-profit organizations other than small business concerns 
shall comply with 35 U.S.C. 210(c) and Executive Order 12591 (3 CFR, 
1987 Comp., p. 220) (which codifies a Presidential Memorandum on 
Government Patent Policy, dated February 18, 1983).
    (i) The Executive order states that, as a matter of policy, grants 
and cooperative agreements should grant to all for-profit organizations, 
regardless of size, title to patents made in whole or in part with 
Federal funds, in exchange for royalty-free use by or on behalf of the 
Government (i.e., it extends the applicability of 35 U.S.C. Chapter 18, 
to the extent permitted by law, to for-profit organizations other than 
small business concerns).
    (ii) 35 U.S.C. 210(c) states that 35 U.S.C. Chapter 18 is not 
intended to limit agencies' authority to agree to the disposition of 
rights in inventions in accordance with the Presidential memorandum 
codified by the Executive order. It also states that such grants and 
cooperative agreements shall provide for Government license rights 
required by 35 U.S.C. 202(c)(4) and march-in rights required by 35 
U.S.C. 203.
    (b) Copyright, data and software rights. Requirements concerning 
data and software rights are as follows:
    (1) The recipient may copyright any work that is subject to 
copyright and was developed under an award. DoD Components reserve a 
royalty-free, nonexclusive and irrevocable right to reproduce, publish, 
or otherwise use the work for Federal purposes, and to authorize others 
to do so.
    (2) Unless waived by the DoD Component making the award, the Federal 
Government has the right to:
    (i) Obtain, reproduce, publish or otherwise use for Federal 
Government purposes the data first produced under an award.

[[Page 155]]

    (ii) Authorize others to receive, reproduce, publish, or otherwise 
use such data for Federal purposes.

                          Procurement Standards



Sec. 34.30  Purpose of procurement standards.

    Section 34.31 sets forth requirements necessary to ensure:
    (a) Compliance of recipients' procurements that use Federal funds 
with applicable Federal statutes and executive orders.
    (b) Proper stewardship of Federal funds used in recipients' 
procurements.



Sec. 34.31  Requirements.

    The following requirements pertain to recipients' procurements 
funded in whole or in part with Federal funds or with recipients' cost-
share or match:
    (a) Reasonable cost. Recipients procurement procedures shall make 
maximum practicable use of competition, or shall use other means that 
ensure reasonable cost for procured goods and services.
    (b) Pre-award review of certain procurements. Prior to awarding a 
procurement contract under an award, a recipient may be required to 
provide the grants officer administering the award with pre-award 
documents (e.g., requests for proposals, invitations for bids, or 
independent cost estimates) related to the procurement. Recipients will 
only be required to provide such documents for the grants officer's pre-
award review in exceptional cases where the grants officer judges that 
there is a compelling need to do so. In such cases, the grants officer 
must include a provision in the award that states the requirement.
    (c) Contract provisions. (1) Contracts in excess of the simplified 
acquisition threshold shall contain contractual provisions or conditions 
that allow for administrative, contractual, or legal remedies in 
instances in which a contractor violates or breaches the contract terms, 
and provide for such remedial actions as may be appropriate.
    (2) All contracts in excess of the simplified acquisition threshold 
shall contain suitable provisions for termination for default by the 
recipient or for termination due to circumstances beyond the control of 
the contractor.
    (3) All negotiated contracts in excess of the simplified acquisition 
threshold shall include a provision permitting access of the Department 
of Defense, the Comptroller General of the United States, or any of 
their duly authorized representatives, to any books, documents, papers, 
and records of the contractor that are directly pertinent to a specific 
program, for the purpose of making audits, examinations, excerpts, and 
transcriptions.
    (4) All contracts, including those for amounts less than the 
simplified acquisition threshold, awarded by recipients and their 
contractors shall contain the procurement provisions of Appendix A to 
this part, as applicable.

                           Reports and Records



Sec. 34.40  Purpose of reports and records.

    Sections 34.41 and 34.42 prescribe requirements for monitoring and 
reporting financial and program performance and for records retention.



Sec. 34.41  Monitoring and reporting program and financial performance.

    Grants officers may use the provisions of 32 CFR 32.51 and 32.52 for 
awards to for-profit organizations, or may include equivalent technical 
and financial reporting requirements that ensure reasonable oversight of 
the expenditure of appropriated funds. As a minimum, equivalent 
requirements must include:
    (a) Periodic reports (at least annually, and no more frequently than 
quarterly) addressing both program status and business status, as 
follows:
    (1) The program portions of the reports must address progress toward 
achieving program performance goals, including current issues, problems, 
or developments.
    (2) The business portions of the reports shall provide summarized 
details on the status of resources (federal funds and non-federal cost 
sharing or matching), including an accounting of expenditures for the 
period covered by the report. The report should compare the resource 
status with any payment and expenditure schedules or plans provided in 
the original award; explain

[[Page 156]]

any major deviations from those schedules; and discuss actions that will 
be taken to address the deviations.
    (3) When grants officers previously authorized advance payments, 
pursuant to Sec. 34.12(a)(2), they should consult with the program 
official and consider whether program progress reported in the periodic 
report, in relation to reported expenditures, is sufficient to justify 
continued authorization of advance payments.
    (b) Unless inappropriate, a final performance report that addresses 
all major accomplishments under the award.



Sec. 34.42  Retention and access requirements for records.

    (a) This section sets forth requirements for records retention and 
access to records for awards to recipients.
    (b) Financial records, supporting documents, statistical records, 
and all other records pertinent to an award shall be retained for a 
period of three years from the date of submission of the final 
expenditure report. The only exceptions are the following:
    (1) If any litigation, claim, or audit is started before the 
expiration of the 3-year period, the records shall be retained until all 
litigation, claims or audit findings involving the records have been 
resolved and final action taken.
    (2) Records for real property and equipment acquired with Federal 
funds shall be retained for 3 years after final disposition.
    (3) When records are transferred to or maintained by the DoD 
Component that made the award, the 3-year retention requirement is not 
applicable to the recipient.
    (4) Indirect cost rate proposals, cost allocations plans, and 
related records, for which retention requirements are specified in 
Sec. 34.42(g).
    (c) Copies of original records may be substituted for the original 
records if authorized by the grants officer.
    (d) The grants officer shall request that recipients transfer 
certain records to DoD Component custody when he or she determines that 
the records possess long term retention value. However, in order to 
avoid duplicate recordkeeping, a grants officer may make arrangements 
for recipients to retain any records that are continuously needed for 
joint use.
    (e) DoD Components, the Inspector General, Comptroller General of 
the United States, or any of their duly authorized representatives, have 
the right of timely and unrestricted access to any books, documents, 
papers, or other records of recipients that are pertinent to the awards, 
in order to make audits, examinations, excerpts, transcripts and copies 
of such documents. This right also includes timely and reasonable access 
to a recipient's personnel for the purpose of interview and discussion 
related to such documents. The rights of access in this paragraph are 
not limited to the required retention period, but shall last as long as 
records are retained.
    (f) Unless required by statute, no DoD Component shall place 
restrictions on recipients that limit public access to the records of 
recipients that are pertinent to an award, except when the DoD Component 
can demonstrate that such records shall be kept confidential and would 
have been exempted from disclosure pursuant to the Freedom of 
Information Act (5 U.S.C. 552) if the records had belonged to the DoD 
Component making the award.
    (g) Indirect cost proposals, cost allocation plans, and other cost 
accounting documents (such as documents related to computer usage 
chargeback rates), along with their supporting records, shall be 
retained for a 3-year period, as follows:
    (1) If a recipient is required to submit an indirect-cost proposal, 
cost allocation plan, or other computation to the cognizant Federal 
agency, for purposes of negotiating an indirect cost rate or other 
rates, the 3-year retention period starts on the date of the submission. 
This retention requirement also applies to subrecipients submitting 
similar documents for negotiation to the recipient.
    (2) If the recipient or the subrecipient is not required to submit 
the documents or supporting records for negotiating an indirect cost 
rate or other rates, the 3-year retention period for the documents and 
records starts at

[[Page 157]]

the end of the fiscal year (or other accounting period) covered by the 
proposal, plan, or other computation.
    (h) If the information described in this section is maintained on a 
computer, recipients shall retain the computer data on a reliable medium 
for the time periods prescribed. Recipients may transfer computer data 
in machine readable form from one reliable computer medium to another. 
Recipients' computer data retention and transfer procedures shall 
maintain the integrity, reliability, and security of the original 
computer data. Recipients shall also maintain an audit trail describing 
the data transfer. For the record retention time periods prescribed in 
this section, recipients shall not destroy, discard, delete, or write 
over such computer data.

                       Termination and Enforcement



Sec. 34.50  Purpose of termination and enforcement.

    Sections 34.51 through 34.53 set forth uniform procedures for 
suspension, termination, enforcement, and disputes.



Sec. 34.51  Termination.

    (a) Awards may be terminated in whole or in part only in accordance 
with one of the following:
    (1) By the grants officer, if a recipient materially fails to comply 
with the terms and conditions of an award.
    (2) By the grants officer with the consent of the recipient, in 
which case the two parties shall agree upon the termination conditions, 
including the effective date and, in the case of partial termination, 
the portion to be terminated.
    (3) By the recipient upon sending to the grants officer written 
notification setting forth the reasons for such termination, the 
effective date, and, in the case of partial termination, the portion to 
be terminated. The recipient must provide such notice at least 30 
calendar days prior to the effective date of the termination. However, 
if the grants officer determines in the case of partial termination that 
the reduced or modified portion of the award will not accomplish the 
purposes for which the award was made, he or she may terminate the award 
in its entirety.
    (b) If costs are allowed under an award, the responsibilities of the 
recipient referred to in Sec. 34.61(b), including those for property 
management as applicable, shall be considered in the termination of the 
award, and provision shall be made for continuing responsibilities of 
the recipient after termination, as appropriate.



Sec. 34.52  Enforcement.

    (a) Remedies for noncompliance. If a recipient materially fails to 
comply with the terms and conditions of an award, whether stated in a 
Federal statute, regulation, assurance, application, or notice of award, 
the grants officer may, in addition to imposing any of the special 
conditions outlined in Sec. 34.4, take one or more of the following 
actions, as appropriate in the circumstances:
    (1) Temporarily withhold cash payments pending correction of the 
deficiency by the recipient or more severe enforcement action by the 
grants officer and DoD Component.
    (2) Disallow (that is, deny both use of funds and any applicable 
matching credit for) all or part of the cost of the activity or action 
not in compliance.
    (3) Wholly or partly suspend or terminate the current award. In the 
case of termination, the recipient will be reimbursed for allowable 
costs incurred prior to termination, with the possible exception of 
those for activities and actions described in paragraph (a)(2) of this 
section.
    (4) Withhold further awards for the project or program.
    (5) Take other remedies that may be legally available.
    (b) Hearings and appeals. In taking an enforcement action, the 
grants officer and DoD Component shall provide the recipient an 
opportunity for hearing, appeal, or other administrative proceeding to 
which the recipient is entitled under any statute or regulation 
applicable to the action involved (see Sec. 34.53 and 32 CFR 22.815).
    (c) Effects of suspension and termination. Costs of a recipient 
resulting from obligations incurred by the recipient during a suspension 
or after termination of an award are not allowable

[[Page 158]]

unless the grants officer expressly authorizes them in the notice of 
suspension or termination or subsequently. Other recipient costs during 
suspension or after termination which are necessary and not reasonably 
avoidable are allowable if the costs:
    (1) Result from obligations which were properly incurred by the 
recipient before the effective date of suspension or termination, are 
not in anticipation of it, and in the case of a termination, are 
noncancellable; and
    (2) Would be allowable if the award were not suspended or expired 
normally at the end of the funding period in which the termination takes 
effect.
    (d) Relationship to debarment and suspension. The enforcement 
remedies identified in this section, including suspension and 
termination, do not preclude a recipient from being subject to debarment 
and suspension under 32 CFR part 25.



Sec. 34.53  Disputes and appeals.

    Recipients have the right to appeal certain decisions by grants 
officers. In resolving such issues, DoD policy is to use Alternative 
Dispute Resolution (ADR) techniques, to the maximum practicable extent. 
See 32 CFR 22.815 for standards for DoD Components' dispute resolution 
and formal, administrative appeal procedures.



                 Subpart C--After-the-Award Requirements



Sec. 34.60  Purpose.

    Sections 34.61 through 34.63 contain procedures for closeout and for 
subsequent disallowances and adjustments.



Sec. 34.61  Closeout procedures.

    (a) The cognizant grants officer shall, at least six months prior to 
the expiration date of the award, contact the recipient to establish:
    (1) All steps needed to close out the award, including submission of 
financial and performance reports, liquidation of obligations, and 
decisions on property disposition.
    (2) A schedule for completing those steps.
    (b) The following provisions shall apply to the closeout:
    (1) The responsible grants officer and payment office shall expedite 
completion of steps needed to close out awards and make prompt, final 
payments to a recipient for allowable reimbursable costs under the award 
being closed out.
    (2) The recipient shall promptly refund any unobligated balances of 
cash that the DoD Component has advanced or paid and that is not 
authorized to be retained by the recipient for use in other projects. 
For unreturned amounts that become delinquent debts, see 32 CFR 22.820.
    (3) When authorized by the terms and conditions of the award, the 
grants officer shall make a settlement for any upward or downward 
adjustments to the Federal share of costs after closeout reports are 
received.
    (4) The recipient shall account for any real property and personal 
property acquired with Federal funds or received from the Federal 
Government in accordance with Secs. 34.21 through 34.25.
    (5) If a final audit is required and has not been performed prior to 
the closeout of an award, the DoD Component shall retain the right to 
recover an appropriate amount after fully considering the 
recommendations on disallowed costs resulting from the final audit.



Sec. 34.62  Subsequent adjustments and continuing responsibilities.

    (a) The closeout of an award does not affect any of the following:
    (1) The right of the Department of Defense to disallow costs and 
recover funds on the basis of a later audit or other review.
    (2) The obligation of the recipient to return any funds due as a 
result of later refunds, corrections, or other transactions.
    (3) Audit requirements in Sec. 34.16.
    (4) Property management requirements in Secs. 34.21 through 34.25.
    (5) Records retention as required in Sec. 34.42.
    (b) After closeout of an award, a relationship created under an 
award may be modified or ended in whole or in part with the consent of 
the grants officer and the recipient, provided the responsibilities of 
the recipient referred to in Sec. 34.61(a), including those for property 
management as applicable, are considered and provisions made for

[[Page 159]]

continuing responsibilities of the recipient, as appropriate.



Sec. 34.63  Collection of amounts due.

    Any funds paid to a recipient in excess of the amount to which the 
recipient is finally determined to be entitled under the terms and 
conditions of the award constitute a debt to the Federal Government. 
Procedures for issuing the demand for payment and pursuing 
administrative offset and other remedies are described in 32 CFR 22.820.

               Appendix A to Part 34--Contract Provisions

    All contracts awarded by a recipient, including those for amounts 
less than the simplified acquisition threshold, shall contain the 
following provisions as applicable:
    1. Equal Employment Opportunity--All contracts shall contain a 
provision requiring compliance with E.O. 11246 (3 CFR, 1964-1965 Comp., 
p. 339), ``Equal Employment Opportunity,'' as amended by E.O. 11375 (3 
CFR, 1966-1970 Comp., p. 684), ``Amending Executive Order 11246 Relating 
to Equal Employment Opportunity,'' and as supplemented by regulations at 
41 CFR chapter 60, ``Office of Federal Contract Compliance Programs, 
Equal Employment Opportunity, Department of Labor.''
    2. Copeland ``Anti-Kickback'' Act (18 U.S.C. 874 and 40 U.S.C. 
276c)--All contracts and subawards in excess of $2000 for construction 
or repair awarded by recipients and subrecipients shall include a 
provision for compliance with the Copeland ``Anti-Kickback'' Act (18 
U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR 
part 3, ``Contractors and Subcontractors on Public Building or Public 
Work Financed in Whole or in Part by Loans or Grants from the United 
States''). The Act provides that each contractor or subrecipient shall 
be prohibited from inducing, by any means, any person employed in the 
construction, completion, or repair of public work, to give up any part 
of the compensation to which he is otherwise entitled. The recipient 
shall report all suspected or reported violations to the responsible DoD 
Component.
    3. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-
333)--Where applicable, all contracts awarded by recipients in excess of 
$100,000 for construction and other purposes that involve the employment 
of mechanics or laborers shall include a provision for compliance with 
Sections 102 and 107 of the Contract Work Hours and Safety Standards Act 
(40 U.S.C. 327-333), as supplemented by Department of Labor regulations 
(29 CFR part 5). Under Section 102 of the Act, each contractor shall be 
required to compute the wages of every mechanic and laborer on the basis 
of a standard work week of 40 hours. Work in excess of the standard work 
week is permissible provided that the worker is compensated at a rate of 
not less than 1\1/2\ times the basic rate of pay for all hours worked in 
excess of 40 hours in the work week. Section 107 of the Act is 
applicable to construction work and provides that no laborer or mechanic 
shall be required to work in surroundings or under working conditions 
which are unsanitary, hazardous or dangerous. These requirements do not 
apply to the purchases of supplies or materials or articles ordinarily 
available on the open market, or contracts for transportation or 
transmission of intelligence.
    4. Rights to Inventions Made Under a Contract, Grant or Cooperative 
Agreement--Contracts, grants, or cooperative agreements for the 
performance of experimental, developmental, or research work shall 
provide for the rights of the Federal Government and the recipient in 
any resulting invention in accordance with 37 CFR part 401, ``Rights to 
Inventions Made by Nonprofit Organizations and Small Business Firms 
Under Government Grants, Contracts and Cooperative Agreements.''
    5. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water 
Pollution Control Act (33 U.S.C. 1251 et seq.), as amended--Contracts 
and subawards of amounts in excess of $100,000 shall contain a provision 
that requires the recipient to agree to comply with all applicable 
standards, orders or regulations issued pursuant to the Clean Air Act 
(42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as 
amended (33 U.S.C. 1251 et seq.). Violations shall be reported to the 
responsible DoD Component and the Regional Office of the Environmental 
Protection Agency (EPA).
    6. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)--Contractors who 
apply or bid for an award of $100,000 or more shall file the required 
certification. Each tier certifies to the tier above that it will not 
and has not used Federal appropriated funds to pay any person or 
organization for influencing or attempting to influence an officer or 
employee of any agency, a member of Congress, officer or employee of 
Congress, or an employee of a member of Congress in connection with 
obtaining any Federal contract, grant or any other award covered by 31 
U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal 
funds that takes place in connection with obtaining any Federal award. 
Such disclosures are forwarded from tier to tier up to the recipient.
    7. Debarment and Suspension (E.O.s 12549 and 12689)--Contract awards 
that exceed the simplified acquisition threshold and certain other 
contract awards shall not be made to parties listed on nonprocurement 
portion of the General Services Administration's Lists

[[Page 160]]

of Parties Excluded from Federal Procurement and Nonprocurement Programs 
in accordance with E.O.s 12549 (3 CFR, 1986 Comp., p. 189) and 12689 (3 
CFR, 1989 Comp., p. 235), ``Debarment and Suspension.'' This list 
contains the names of parties debarred, suspended, or otherwise excluded 
by agencies, and contractors declared ineligible under statutory or 
regulatory authority other than E.O. 12549. Contractors with awards that 
exceed the small purchase threshold shall provide the required 
certification regarding its exclusion status and that of its principals.

[[Page 161]]



  SUBCHAPTER C--PERSONNEL, MILITARY AND CIVILIANCross Reference: For a 
 revision of Standards for a Merit System of Personnel Administration, 
                           see 5 CFR part 900.





PART 40--STANDARDS OF CONDUCT CROSS-REFERENCES--Table of Contents




Sec.
40.1  18 U.S.C. 208(b) waivers.
40.2  Cross-reference to Standards of Ethical Conduct for Employees of 
          the Executive Branch.
40.3  Cross-reference to Financial Disclosure, Qualified Trusts, and 
          Certificates of Divestiture for Executive Branch Employees.
40.4  Cross-reference to Limitations on Outside Employment and 
          Prohibition of Honoraria; Confidential Reporting of Payments 
          to Charities in Lieu of Honoraria.
40.5  Cross-reference to Regulations Concerning Post-Employment Conflict 
          of Interest.
40.6  Cross-reference to Office of Government Ethics and Executive 
          Agency Ethics Program Responsibilities.
40.7  Cross-reference to Post-Employment Conflict of Interest 
          Restrictions.

    Authority: 5 U.S.C. 7301.

    Source: 58 FR 47624, Sept. 10, 1993, unless otherwise noted.



Sec. 40.1  18 U.S.C. 208(b) waivers.

    Under 18 U.S.C. 208(b) categories of financial interests may be made 
non-disqualifying for purposes of 18 U.S.C. 208(a) by a general 
regulation published in the Federal Register. Shares of a widely held, 
diversified mutual fund or regulated investment company have been 
exempted by a general regulation as being too remote or inconsequential 
to affect the integrity of Government personnel.



Sec. 40.2  Cross-reference to Standards of Ethical Conduct for Employees of the Executive Branch.

    DoD employees should refer to the Office of Government Ethics (OGE) 
regulation, Standards of Ethical Conduct for Employees of the Executive 
Branch, 5 CFR part 2635, and the Department of Defense (DoD) regulation 
that supplements the OGE regulation, 5 CFR 3601.101, for standards of 
conduct provisions, including standards for gifts from outside sources, 
gifts between employees, conflicting financial interests, impartiality 
in performing official duties, seeking other employment, misuse of 
position, and outside activities.



Sec. 40.3  Cross-reference to Financial Disclosure, Qualified Trusts, and Certificates of Divestiture for Executive Branch Employees.

    DoD employees should refer to the OGE regulation, Financial 
Disclosure, Qualified Trusts, and Certificates of Divestiture for 
Executive Branch Employees, 5 CFR part 2634, for financial disclosure 
provisions.



Sec. 40.4  Cross-reference to Limitations on Outside Employment and Prohibition of Honoraria; Confidential Reporting of Payments to Charities in Lieu of 
          Honoraria.

    DoD employees should refer to the OGE regulation, Limitations on 
Outside Employment and Prohibition of Honoraria; Confidential Reporting 
of Payments to Charities in Lieu of Honoraria, 5 CFR part 2636, for 
provisions on outside employment and honoraria.



Sec. 40.5  Cross-reference to Regulations Concerning Post-Employment Conflict of Interest.

    DoD employees and former DoD employees should refer to the OGE 
regulation, Regulations Concerning Post-Employment Conflict of Interest, 
5 CFR part 2637, for provisions on post-employment applicable to those 
who left DoD employment prior to January 1, 1991.



Sec. 40.6  Cross-reference to Office of Government Ethics and Executive Agency Ethics Program Responsibilities.

    DoD employees should refer to the OGE regulation, Office of 
Government Ethics and Executive Agency Ethics Program Responsibilities, 
5 CFR part 2638, for provisions establishing executive branch ethics 
programs, including ethics training programs.

[[Page 162]]



Sec. 40.7  Cross-reference to Post-Employment Conflict of Interest Restrictions.

    DoD employees and former DoD employees should refer the to OGE 
regulation, Post-Employment Conflict of Interest Restrictions, 5 CFR 
part 2641, for provisions on post-employment applicable to those who 
left DoD employment on or after January 1, 1991.



PART 41--ENLISTED ADMINISTRATIVE SEPARATIONS--Table of Contents




Sec.
41.1  Purpose.
41.2  Applicability and scope.
41.3  Policy.
41.4  Responsibilities.
41.5  Effective date and implementation.
41.6  Definitions.

Appendix A to Part 41--Standards and Procedures

    Authority: 10 U.S.C. 1162, 1163, 1169, 1170, 1172, and 1173.

    Source: 47 FR 10174, Mar. 9, 1982, unless otherwise noted.



Sec. 41.1  Purpose.

    This part establishes policies, standards, and procedures governing 
the administrative separation of enlisted members from the Military 
Services.



Sec. 41.2  Applicability and scope.

    The provisions of this part apply to Office of the Secretary of 
Defense and the Military Departments (including their reserve 
components). The term ``Military Services,'' as used herein, refers to 
the Army, Navy, Air Force and Marine Corps.



Sec. 41.3  Policy.

    (a) It is the policy of the Department of Defense to promote the 
readiness of the Military Services by maintaining high standards of 
conduct and performance. Separation policy promotes the readiness of the 
Military Services by providing an orderly means to:
    (1) Ensure that the Military Services are served by individuals 
capable of meeting required standards of duty performance and 
discipline;
    (2) Maintain standards of performance and conduct through 
characterization of service in a system that emphasizes the importance 
of honorable service;
    (3) Achieve authorized force levels and grade distributions; and
    (4) Provide for the orderly administrative separation of enlisted 
personnel in a variety of circumstances.
    (b) DoD separation policy is designed to strengthen the concept that 
military service is a calling different from any civilian occupation.
    (1) The acquisition of military status, whether through enlistment 
or induction, involves a commitment to the United States, the service, 
and one's fellow citizens and servicemembers to complete successfully a 
period of obligated service. Early separation for failure to meet 
required standards of performance or discipline represents a failure to 
fulfill that commitment.
    (2) Millions of Americans from diverse backgrounds and with a wide 
variety of aptitudes and attitudes upon entering military service have 
served successfully in the armed forces. It is the policy of the 
Department of Defense to provide servicemembers with the training, 
motivation, and professional leadership that inspires the dedicated 
enlisted member to emulate his or her predecessors and peers in meeting 
required standards of performance and discipline.
    (3) The Military Services make a substantial investment in training, 
time, equipment, and related expenses when persons are enlisted or 
inducted into military service. Separation prior to completion of an 
obligated period of service is wasteful because it results in loss of 
this investment and generates a requirement for increased accession. 
Consequently, attrition is an issue of significant concern at all levels 
of responsibility within the armed forces. Reasonable efforts should be 
made to identify enlisted members who exhibit a likelihood for early 
separation, and to improve their chances for retention through 
counseling, retraining, and rehabilitation prior to initiation of 
separation proceedings. Enlisted members who do not demonstrate 
potential for further military service should be separated in order to 
avoid the high costs in terms of pay, administrative efforts, 
degradation of morale, and substandard

[[Page 163]]

mission performance that are associated with retention of enlisted 
members who do not conform to required standards of discipline and 
performance despite efforts at counseling, retraining, or 
rehabilitation.
    (c) Standards and procedures for implementation of these policies 
are set forth in appendix A to this part.



Sec. 41.4  Responsibilities.

    (a) The Secretaries of the Military Departments shall prescribe 
implementing documents to ensure that the policies, standards, and 
procedures set forth in this part are administered in a manner that 
provides consistency in separation policy to the extent practicable in a 
system that is based on command discretion. The implementing documents 
also shall address the following matters:
    (1) Processing goals. The Secretary concerned shall establish 
processing time goals for the types of administrative separations 
authorized by this part. Such goals shall be designed to further the 
efficient administration of the armed forces and shall be measured from 
the date of notification to the date of separation. Normally such goals 
should not exceed 15 working days for the Notification Procedure (part 
3, section B., appendix A) and 50 working days for the Administrative 
Board Procedure (part 3, section C., appendix A) Goals for shorter 
processing times are encouraged, particularly for cases in which 
expeditious action is likely. Variations may be established for complex 
cases or cases in which the Separation Authority is not located on the 
same facility as the respondent. The goals, and a program for monitoring 
effectiveness, shall be set forth in the implementing document of the 
Military Department. Failure to process an administrative separation 
within the prescribed goal for processing times shall not create a bar 
to separation or characterization.
    (2) Periodic explanations. The Secretary concerned shall prescribe 
appropriate internal procedures for periodic explanation to enlisted 
members of the types of separations, the basis for their issuance, the 
possible effects of various actions upon reenlistment, civilian 
employment, veterans' benefits, and related matters, and the effects of 
10 U.S.C. 977 and Pub. L. 97-66, concerning denial of certain benefits 
to members who fail to complete at least 2 years of an original 
enlistment. Such explanation may be provided in the form of a written 
fact sheet or similar document. The periodic explanation shall take 
place at least each time the provisions of the Uniform Code of Military 
Justice (UCMJ) are explained pursuant to Article 137 of the UCMJ. The 
requirement that the effects of the various types of separations be 
explained to enlisted members is a command responsibility, not a 
procedural entitlement. Failure on the part of the member to receive or 
to understand such explanation does not create a bar to separation or 
characterization.
    (3) Provision of information during separation processing. The 
Secretary concerned shall ensure that information concerning the purpose 
and authority of the Discharge Review Board and the Board for Correction 
of Military/Naval Records, established under 10 U.S.C. 1552 and 1553 and 
32 CFR part 70 (DoD Directive 1332.28) is provided during the separation 
processing of all members, except when the separation is for the purpose 
of an immediate reenlistment. Specific counseling is required under 38 
U.S.C. 3103(a) which states that a discharge under other than honorable 
conditions, resulting from a period of continuous, unauthorized absence 
of 180 days or more, is a conditional bar to benefits administered by 
the Veterans Administration, notwithstanding any action by a Discharge 
Review Board. The information required by this paragraph should be 
provided in the form of a written fact sheet or similar document. 
Failure on the part of the member to receive or to understand such 
explanation does not create a bar to separation or characterization.
    (b) The Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) may modify or supplement the enclosures to this 
Directive, and may delegate the authority to establish reporting 
requirements for the reasons for separation (part 1, appendix A) to a 
Deputy Assistant Secretary.

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Sec. 41.5  Effective date and implementation.

    (a) This part applies only to administrative separation proceedings 
initiated on or after October 1, 1982.
    (b) Part 41, effective December 29, 1976 shall continue to be used 
for administrative separation proceedings initiated on or before 
September 30, 1982.



Sec. 41.6  Definitions.

    (a) Member. An enlisted member of a Military Service.
    (b) Discharge. Complete severance from all military status gained by 
the enlistment or induction concerned.
    (c) Release from active duty. Termination of active duty status and 
transfer or reversion to a reserve component not on active duty, 
including transfer to the Individual Ready Reserve (IRR).
    (d) Separation. A general term which includes discharge, release 
from active duty, release from custody and control of the armed forces, 
transfer to the IRR, and similar changes in active or reserve status.
    (e) Military record. An individual's overall performance while a 
member of a Military Service, including personal conduct and performance 
of duty.
    (f) Separation Authority. An official authorized by the Secretary 
concerned to take final action with respect to a specified type of 
separation.
    (g) Convening Authority. (1) The Separation Authority or (2) a 
commanding officer who has been authorized by the Secretary concerned to 
process the case except for final action and who otherwise has the 
qualifications to act as a Separation Authority.
    (h) Respondent. A member of a Military Service who has been notified 
that action has been initiated to separate the member.
    (i) Entry level status. The first 180 days of continuous active 
military service. For members of a reserve component who have not 
completed 180 days of continuous active military service and who are not 
on active duty, entry level status begins upon enlistment in a reserve 
component (including a period of assignment to a delayed entry program) 
and terminates 180 days after beginning an initial period of entry level 
active duty training. For purposes of characterization of service or 
description of separation, the member's status is determined by the date 
of notification as to the initiation of separation proceedings.

             Appendix A to Part 41--Standards and Procedures

                            Table of Contents

                     Part 1--Reasons for Separation

A. Expiration of Service Obligation
1. Basis
2. Characterization or description
B. Selected Changes in Service Obligations
1. Basis
2. Characterization or description
C. Convenience of the Government
1. Basis
2. Characterization or description
3. Procedures
4. Reasons
    a. Early release to further education
    b. Early release to accept public office
    c. Dependency or hardship
    d. Pregnancy or childbirth
    e. Parenthood
    f. Conscientious objection
    g. Surviving family member
    h. Other designated physical or mental conditions
    i. Additional grounds
D. Disability
1. Basis
2. Characterization or description
3. Procedures
E. Defective Enlistments and Inductions
1. Minority
    a. Basis
      (1) Under age 17
      (2) Age 17
    b. Description of separation
    c. Procedure
2. Erroneous
    a. Basis
    b. Characterization or description
    c. Procedure
3. Defective enlistment agreements
    a. Basis
    b. Characterization or description
    c. Procedures
4. Fraudulent entry into military service
    a. Basis
    b. Characterization or description
    c. Procedures
F. Entry Level Performance and Conduct
1. Basis
2. Counseling and rehabilitation
3. Description of separation
4. Procedures
G. Unsatisfactory Performance
1. Basis
2. Counseling and rehabilitation
3. Characterization or description
4. Procedures

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H. Homosexuality
1. Basis
2. Characterization or description
3. Procedures
I. Drug Abuse Rehabilitation Failure
1. Basis
2. Characterization or description
3. Procedures
J. Alcohol Abuse Rehabilitation Failure
1. Basis
2. Characterization or description
3. Procedures
K. Misconduct
1. Basis
    a. Reasons
    b. Reporting
    c. Related separations
2. Counseling and rehabilitation
3. Characterization or description
4. Procedures
L. Separation in Lieu of Trial by Court-Martial
1. Basis
2. Characterization or description
3. Procedures
M. Security
1. Basis
2. Characterization or description
N. Unsatisfactory Participation in the Ready Reserves
1. Basis
2. Characterization or description
3. Procedures
O. Secretarial Plenary Authority
1. Basis
2. Characterization or description
3. Procedures
P. Reasons Established by the Military Department
1. Basis
2. Counseling and rehabilitation
3. Characterization or description
4. Procedures

          Part 2--Guidelines on Separation and Characterization

A. Separation
1. Scope
2. Guidance
3. Limitations on separation actions
B. Suspension of Separation
1. Suspension
2. Action during the period of suspension
C. Characterization of Service or Description of Separation
1. Types of characterization or description
2. Characterization of service
    a. General considerations
    b. Types of characterization
      (1) Honorable
      (2) General (under honorable conditions)
      (3) Under Other Than Honorable
          Conditions
    c. Limitations on characterization
3. Uncharacterized separations
    a. Entry Level Separation
    b. Void enlistments or inductions
    c. Dropping from the rolls

                    Part 3--Procedures for Separation

A. Scope
B. Notification Procedure
1. Notice
2. Additional notice requirements
3. Response
4. Separation Authority
C. Administrative Board Procedure
1. Notice
2. Additional notice requirements
3. Response
4. Waiver
5. Hearing procedure
    a. Composition
    b. Presiding officer
    c. Witnesses
    d. Record of proceedings
    e. Presentation of evidence
    f. Rights of the respondents
    g. Findings and recommendations
      (1) Retention or separation
      (2) Suspension or separation
      (3) Characterization of service or description of separation
      (4) Transfer to the Ready Reserves
6. Separation Authority
D. Additional Provisions Concerning Members Confined by Civil 
          Authorities
E. Additional Requirements for Certain Members of Reserve Components
1. Members of reserve components not on active duty
2. Tranfer to the IRR
F. Additional Requirements for Members beyond Military Control by Reason 
          of Unauthorized Absence
1. Determination of applicability
2. Notice
3. Members of reserve components

                     Part 1--Reasons for Separation

    A. Expiration of Service Obligation. 1. Basis. A member may be 
separated upon expiration of enlistment or fulfillment of service 
obligation. This includes separation authorized by the Secretary 
concerned when the member is within 30 days of the date of expiration of 
term of service under the following circumstances:
    a. The member is serving outside the continental United States 
(CONUS); or
    b. The member is a resident of a State, territory, or possession 
outside CONUS and is serving outside the member's State, territory, or 
possession of residence.
    2. Characterization or description. Honorable, unless:
    a. An Entry Level Separation is required under subsection C.3. of 
part 2;
    b. Characterization of service as General (under honorable 
conditions) is warranted under section C. of part 2 on the basis of 
numerical scores accumulated in a formal, Service-wide rating system 
that evaluates conduct and performance on a regular basis; or

[[Page 166]]

    c. Another characterization is warranted upon discharge from the IRR 
under section E. of part 3.
    B. Selected Changes in Service Obligations. 1. Basis. A member may 
be separated for the following reasons:
    a. General demobilization or reduction in authorized strength.
    b. Early separation of personnel under a program established by the 
Secretary concerned. A copy of the document authorizing such program 
shall be forwarded to the Assistant Secretary of Defense (Manpower, 
Reserve Affairs, and Logistics (ASD(MRA&L)) on or before the date of 
implementation.
    c. Acceptance of an active duty commission or appointment, or 
acceptance into a program leading to such a commission or appointment in 
any branch of the Military Services.
    d. Immediate enlistment or reenlistment.
    e. Interservice transfer of inactive reserves in accordance with DoD 
Directive 1205.5.
    2. Characterization or description. Honorable, unless:
    a. An Entry Level Separation is required under section C. of part 2;
    b. Characterization of service as General (under honorable 
conditions) is warranted under section C. of part 2 on the basis of 
numerical scores accumulated in a formal, service-wide rating system 
that evaluates conduct and performance on a regular basis; or
    c. Another characterization is warranted upon discharge from the IRR 
under section E. of part 3.
    C. Convenience of the Government. 1. Basis. A member may be 
separated for convenience of the government for the reasons set forth in 
subsection C.4., below.
    2. Characterization or description. Honorable, unless:
    a. An Entry Level Separation is required under section C. of part 2; 
or
    b. Characterization of service as General (under honorable 
conditions) is warranted under section C. of part 2.
    3. Procedures. Procedural requirements may be established by the 
Secretary concerned, subject to procedures established in subsection 
C.4., below. Prior to characterization of service as General (under 
honorable conditions), the member shall be notified of the specific 
factors in the service record that warrant such a characterization, and 
the Notification Procedure (section B. of part 3) shall be used. Such 
notice and procedure is not required, however, when characterization of 
service as General (under honorable conditions) is based upon numerical 
scores accumulated in a formal, service-wide rating system that 
evaluates conduct and performance on a regular basis.
    4. Reasons. a. Early release to further education. A member may be 
separated under DoD Directive 1332.15 to attend a college, university, 
vocational school, or technical school.
    b. Early release to accept public office. A member may be separated 
to accept public office only under circumstances authorized by the 
Military Department concerned and consistent with DoD Directive 1344.10.
    c. Dependency or hardship. (1) Upon request of the member and 
concurrence of the government, separation may be directed when genuine 
dependency or undue hardship exists under the following circumstances:
    (a) The hardship or dependency is not temporary;
    (b) Conditions have arisen or have been aggravated to an excessive 
degree since entry into the Service, and the member has made every 
reasonable effort to remedy the situation;
    (c) The administrative separation will eliminate or materially 
alleviate the condition; and
    (d) There are no other means of alleviation reasonably available.
    (2) Undue hardship does not necessarily exist solely because of 
altered present or expected income, family separation, or other 
inconveniences normally incident to Military Service.
    d. Pregnancy or childbirth. A female member may be separated on the 
basis of pregnancy or childbirth upon her request, unless retention is 
determined to be in the best interests of the service under section A. 
of part 2 and guidance established by the Military Department concerned.
    e. Parenthood. A member may be separated by reason of parenthood if 
as a result thereof it is determined under the guidance set forth in 
section A. of part 2 that the member is unable satisfactorily to perform 
his or her duties or is unavailable for worldwide assignment or 
deployment. Prior to involuntary separation under this provision, the 
Notification Procedure (section B. of part 3) shall be used. Separation 
processing may not be initiated until the member has been counseled 
formally concerning deficiencies and has been afforded an opportunity to 
overcome those deficiencies as reflected in appropriate counseling or 
personnel records.
    f. Conscientious objection. A member may be separated if authorized 
under 32 CFR part 75 (DoD Directive 1300.6).
    g. Surviving family member. A member may be separated if authorized 
under 32 CFR part 52 (DoD Directive 1315.14).
    h. Other designated physical or mental conditions. (1) The Secretary 
concerned may authorize separation on the basis of other designated 
physical or mental conditions, not amounting to Disability (section D., 
below), that potentially interfere with assignment to or performance of 
duty under the guidance set forth in section A. of part 2. Such 
conditions may include but are not limited

[[Page 167]]

to chronic seasickness or airsickness, enuresis, and personality 
disorder.1
---------------------------------------------------------------------------

    1 Personality disorders are described in the Diagnostic and 
Statistical Manual (DSM-III) of Mental Disorders, 3d Edition, Committee 
on Nomenclature & Statistics, American Psychiatric Association, 
Washington, DC, 1978.
---------------------------------------------------------------------------

    (2) Separation processing may not be initiated until the member has 
been counseled formally concerning deficiencies and has been afforded an 
opportunity to overcome those deficiencies as reflected in appropriate 
counseling or personnel records.
    (3) Separation on the basis of personality disorder is authorized 
only if a diagnosis by a psychiatrist or psychologist, completed in 
accordance with procedures established by the Military Department 
concerned, concludes, that the disorder is so severe that the member's 
ability to function effectively in the military environment is 
significantly impaired.
    (4) Separation for personality disorder is not appropriate when 
separation is warranted under sections A. through N. or section P. of 
this part. For example, if separation is warranted on the basis of 
unsatisfactory performance (section G.) or misconduct (section K.), the 
member should not be separated under this section regardless of the 
existence of a personality disorder.
    (5) Nothing in this provision precludes separation of a member who 
has such a condition under any other basis set forth under this section 
(Convenience of the Government) or for any other reason authorized by 
this part.
    (6) Prior to involuntary separation under this provision, the 
Notification Procedure (section B. of part 3) shall be used.
    (7) The reasons designated by the Secretary concerned shall be 
separately reported.
    i. Additional grounds. The Secretary concerned may provide 
additional grounds for separation for the convenience of the government. 
A copy of the document authorizing such grounds shall be forwarded to 
the ASD(MRA&L) on or before the date of implementation.
    D. Disability. 1. Basis. A member may be separated for disability 
under the provisions of 10 U.S.C. chapter 61.
    2. Characterization or description. Honorable, unless:
    a. An Entry Level Separation is required under section C. of part 2; 
or
    b. Characterization of service as General (under honorable 
conditions) is warranted under section C. of part 2.
    3. Procedures. Procedural requirements for separation may be 
established by the Military Departments consistent with 10 U.S.C. 
chapter 61. If separation is recommended, the following requirements 
apply prior to characterization of service as General (under honorable 
conditions): the member shall be notified of the specific factors in the 
service record that warrant such a characterization, and the 
Notification Procedure (section B. of part 3) shall be used. Such notice 
and procedure is not required, however, when characterization of service 
as General (under honorable conditions) is based upon numerical scores 
accumulated in a formal, service-wide rating system that evaluates 
conduct and performance on a regular basis.
    E. Defective Enlistments and Inductions. 1. Minority. a. Basis. (1) 
Under age 17. If a member is under the age of 17, the enlistment of the 
member is void, and the member shall be separated.
    (2) Age 17. A member shall be separated under 10 U.S.C. 1170 in the 
following circumstances except when the member is retained for the 
purpose of trial by court-martial:
    (a) There is evidence satisfactory to the Secretary concerned that 
the member is under 18 years of age;
    (b) The member enlisted without the written consent of the member's 
parent or guardian; and
    (c) An application for the member's separation is submitted to the 
Secretary concerned by the parent or guardian within 90 days of the 
member's enlistment.
    b. Description of separation. A member separated under subparagraph 
E.1.a.(1), above, shall receive an order of release from the custody and 
control of the armed forces (by reason of void enlistment or induction). 
The separation of a member under subparagraph E.1.a.(2), above, shall be 
described as an Entry Level Separation.
    c. Procedure. The Notification Procedure (section B. of part 3) 
shall be used.
    2. Erroneous. a. Basis. A member may be separated on the basis of an 
erroneous enlistment, induction, or extension of enlistment under the 
guidance set forth in section A. of part 2. An enlistment, induction, or 
extension of enlistment is erroneous in the following circumstances, if:
    (1) It would not have occurred had the relevant facts been known by 
the government or had appropriate directives been followed;
    (2) It was not the result of fraudulent conduct on the part of the 
member; and
    (3) The defect is unchanged in material respects.
    b. Characterization or description. Honorable, unless an Entry Level 
Separation or an order of release from the custody and control of the 
Military Services (by reason of void enlistment or induction) is 
required under section C. of part 2.
    c. Procedure. (1) If the command recommends that the individual be 
retained in military service, the initiation of separation

[[Page 168]]

processing is not required in the following circumstances:
    (a) The defect is no longer present; or
    (b) The defect is waivable and a waiver is obtained from appropriate 
authority.
    (2) If separation processing is initiated, the Notification 
Procedure (section B. of part 3) shall be used.
    3. Defective enlistment agreements. a. Basis. A defective enlistment 
agreement exists in the following circumstances:
    (1) As a result of a material misrepresentation by recruiting 
personnel, upon which the member reasonably relied, the member was 
induced to enlist with a commitment for which the member was not 
qualified;
    (2) The member received a written enlistment commitment from 
recruiting personnel for which the member was qualified, but which 
cannot be fulfilled by the Military Service; or
    (3) The enlistment was involuntary. See 10 U.S.C. 802.
    b. Characterization or description. Honorable, unless an Entry Level 
Separation or an order of release from the custody and control of the 
Military Services (by reason of void enlistment) is required under 
section C. of part 2.
    c. Procedures. This provision does not bar appropriate disciplinary 
action or other administrative separation proceedings regardless of when 
the defect is raised. Separation is appropriate under this provision 
only in the following circumstances:
    (1) The member did not knowingly participate in creation of the 
defective enlistment;
    (2) The member brings the defect to the attention of appropriate 
authorities within 30 days after the defect is discovered or reasonably 
should have been discovered by the member;
    (3) The member requests separation instead of other authorized 
corrective action; and
    (4) The request otherwise meets such criteria as may be established 
by the Secretary concerned.
    4. Fraudulent entry into military service. a. Basis. A member may be 
separated under guidance set forth in section A. of part 2 on the basis 
of procurement of a fraudulent enlistment, induction, or period of 
military service through any deliberate material misrepresentation, 
omission, or concealment which, if known at the time of enlistment, 
induction, or entry onto a period of military service, might have 
resulted in rejection.
    b. Characterization or description. Characterization of service or 
description of separation shall be in accordance with section C. of part 
2. If the fraud involves concealment of a prior separation in which 
service was not characterized as Honorable, characterization normally 
shall be Under Other Than Honorable Conditions.
    c. Procedures. The Notification Procedure (section B. of part 3) 
shall be used except as follows:
    (1) Characterization of service Under Other Than Honorable 
Conditions may not be issued unless the Administrative Board Procedure 
(section C. of part 3) is used.
    (2) When the sole reason for separation is fraudulent entry, 
suspension of separation (section B. of part 2) is not authorized. When 
there are approved reasons for separation in addition to fraudulent 
entry, suspension of separation is authorized only in the following 
circumstances:
    (a) A waiver of the fraudulent entry is approved; and
    (b) The suspension pertains to reasons for separation other than the 
fraudulent entry.
    (3) If the command recommends that the member be retained in 
military service, the initiation of separation processing is unnecessary 
in the following circumstances:
    (a) The defect is no longer present; or
    (b) The defect is waivable and a waiver is obtained from appropriate 
authority.
    (4) If the material misrepresentation includes preservice 
homosexuality (subsection H.1.), the standards of paragraph H.1.c. and 
procedures of subsection H.3. shall be applied in processing a 
separation under this section. In such a case the characterization or 
description of the separation shall be determined under paragraph 
E.4.b., above.
    F. Entry Level Performance and Conduct. 1. Basis. a. A member may be 
separated while in entry level status (Sec. 41.6(i)) when it is 
determined under the guidance set forth in section A. of part 2 that the 
member is unqualified for further military service by reason of 
unsatisfactory performance or conduct (or both), as evidenced by 
inability, lack of reasonable effort, failure to adapt to the military 
environment or minor disciplinary infractions.
    b. When separation of a member in entry level status is warranted by 
unsatisfactory performance or minor disciplinary infractions (or both), 
the member normally should be separated under this section. Nothing in 
this provision precludes separation under another provision of this 
Directive when such separation is authorized and warranted by the 
circumstances of the case.
    2. Counseling and rehabilitation. Separation processing may not be 
initiated until the member has been counseled formally concerning 
deficiencies and has been afforded an opportunity to overcome those 
deficiencies as reflected in appropriate counseling or personnel 
records. Counseling and rehabilitation requirements are important with 
respect to this reason for separation. Because military service is a 
calling different from any civilian occupation, a member should not be 
separated when this is the sole reason

[[Page 169]]

unless there have been efforts at rehabilitation under standards 
prescribed by the Secretary concerned.
    3. Description of separation. Entry Level Separation.
    4. Procedures. The Notification Procedure (section B. of part 3) 
shall be used.
    G. Unsatisfactory Performance. 1. Basis. A member may be separated 
when it is determined under the guidance set forth in section A. of part 
2 that the member is unqualified for further military service by reason 
of unsatisfactory performance. This reason shall not be used if the 
member is in entry level status (Sec. 41.6(i)).
    2. Counseling and Rehabilitation. Separation processing may not be 
initiated until the member has been counseled formally concerning 
deficiencies and has been afforded an opportunity to overcome those 
deficiencies as reflected in appropriate counseling or personnel 
records. Counseling and rehabilitation requirements are of particular 
importance with respect to this reason for separation. Because military 
service is a calling different from any civilian occupation, a member 
should not be separated when unsatisfactory performance is the sole 
reason unless there have been efforts at rehabilitation under standards 
prescribed by the Secretary concerned.
    3. Characterization or description. The service shall be 
characterized as Honorable or General (under honorable conditions) in 
accordance with section C. of part 2.
    4. Procedures. The Notification Procedure (section B. of part 3) 
shall be used.
    H. Homosexuality. 1. Basis. a. Homosexuality is incompatible with 
military service. The presence in the military environment of persons 
who engage in homosexual conduct or who, by their statements, 
demonstrate a propensity to engage in homosexual conduct, seriously 
impairs the accomplishment of the military mission. The presence of such 
members adversely affects the ability of the Military Services to 
maintain discipline, good order, and morale; to foster mutual trust and 
confidence among servicemembers; to ensure the integrity of the system 
of rank and command; to facilitate assignment and worldwide deployment 
of servicemembers who frequently must live and work under close 
conditions affording minimal privacy; to recruit and retain members of 
the Military Services; to maintain the public acceptability of military 
service; and to prevent breaches of security.
    b. As used in this section:
    (1) Homosexual means a person, regardless of sex, who engages in, 
desires to engage in, or intends to engage in homosexual acts;
    (2) Bisexual means a person who engages in, desires to engage in, or 
intends to engage in homosexual and heterosexual acts; and
    (3) A homosexual act means bodily contact, actively undertaken or 
passively permitted, between members of the same sex for the purpose of 
satisfying sexual desires.
    c. The basis for separation may include preservice, prior service, 
or current service conduct or statements. A member shall be separated 
under this section if one or more of the following approved findings is 
made:
    (1) The member has engaged in, attempted to engage in, or solicited 
another to engage in a homosexual act or acts unless there are approved 
further findings that:
    (a) Such conduct is a departure from the member's usual and 
customary behavior;
    (b) Such conduct under all the circumstances is unlikely to recur;
    (c) Such conduct was not accomplished by use of force, coercion, or 
intimidation by the member during a period of military service;
    (d) Under the particular circumstances of the case, the member's 
continued presence in the Service is consistent with the interest of the 
Service in proper discipline, good order, and morale; and
    (e) The member does not desire to engage in or intend to engage in 
homosexual acts.
    (2) The member has stated that he or she is a homosexual or bisexual 
unless there is a further finding that the member is not a homosexual or 
bisexual.
    (3) The member has married or attempted to marry a person known to 
be of the same biological sex (as evidenced by the external anatomy of 
the persons involved) unless there are further findings that the member 
is not a homosexual or bisexual and that the purpose of the marriage or 
attempt was the avoidance or termination of military service.
    2. Characterization or description. Characterization of service or 
description of separation shall be in accordance with the guidance in 
section C. of part 2. When the sole basis for separation is 
homosexuality, a characterization Under Other Than Honorable Conditions 
may be issued only if such a characterization is warranted under section 
C. of part 2 and there is a finding that during the current term of 
service the member attempted, solicited, or committed a homosexual act 
in the following circumstances:
    a. By using force, coercion, or intimidation;
    b. With a person under 16 years of age;
    c. With a subordinate in circumstances that violate customary 
military superior-subordinate relationships;
    d. Openly in public view;
    e. For compensation;
    f. Aboard a military vessel or aircraft; or
    g. In another location subject to military control under aggravating 
circumstances noted in the finding that have an adverse impact on 
discipline, good order, or morale comparable to the impact of such 
activity aboard a vessel or aircraft.
    3. Procedures. The Administrative Board Procedure (section C. of 
part 3) shall be used, subject to the following guidance:

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    a. Separation processing shall be initiated if there is probable 
cause to believe separation is warranted under paragraph H.1.c., above.
    b. The Administrative Board shall follow the procedures set forth in 
subsection C.5. of part 3, except with respect to the following matters:
    (1) If the Board finds that one or more of the circumstances 
authorizing separation under paragraph H.1.c., above, is supported by 
the evidence, the Board shall recommend separation unless the Board 
finds that retention is warranted under the limited circumstances 
described in that paragraph.
    (2) If the Board does not find that there is sufficient evidence 
that one or more of the circumstances authorizing separation under 
paragraph H.1.c. has occurred, the Board shall recommend retention 
unless the case involves another basis for separation of which the 
member has been duly notified.
    c. In any case in which characterization of service Under Other Than 
Honorable Conditions is not authorized, the Separation Authority may be 
exercised by an officer designated under paragraph B.4.a. of part 3.
    d. The Separation Authority shall dispose of the case according to 
the following provisions:
    (1) If the Board recommends retention, the Separation Authority 
shall take one of the following actions:
    (a) Approve the finding and direct retention; or
    (b) Forward the case to the Secretary concerned with a 
recommendation that the Secretary separate the member under the 
Secretary's Authority (section O. of this part 1).
    (2) If the Board recommends separation, the Separation Authority 
shall take one of the following actions:
    (a) Approve the finding and direct separation; or
    (b) Disapprove the finding on the basis of the following 
considerations:
    1 There is insufficient evidence to support the finding; or
    2 Retention is warranted under the limited circumstances described 
in paragraph H.1.c., above.
    (3) If there has been a waiver of Board proceedings, the Separation 
Authority shall dispose of the case in accordance with the following 
provisions:
    (a) If the Separation Authority determines that there is not 
sufficient evidence to support separation under paragraph H.1.c., the 
Separation Authority shall direct retention unless there is another 
basis for separation of which the member has been duly notified.
    (b) If the Separation Authority determines that one or more of the 
circumstances authorizing separation under paragraph H.1.c. has 
occurred, the member shall be separated unless retention is warranted 
under the limited circumstances described in that paragraph.
    e. The burden of proving that retention is warranted under the 
limited circumstances described in paragraph H.1.c. rests with the 
member, except in cases where the member's conduct was solely the result 
of a desire to avoid or terminate military service.
    f. Findings regarding the existence of the limited circumstances 
warranting a member's retention under paragraph H.1.c. are required only 
if:
    (1) The member clearly and specifically raises such limited 
circumstances; or
    (2) The Board or Separation Authority relies upon such circumstances 
to justify the member's retention.
    g. Nothing in these procedures:
    (1) Limits the authority of the Secretary concerned to take 
appropriate action in a case to ensure that there has been compliance 
with the provisions of this part;
    (2) Precludes retention of a member for a limited period of time in 
the interests of national security as authorized by the Secretary 
concerned;
    (3) Authorizes a member to seek Secretarial review unless authorized 
in procedures promulgated by the Secretary concerned;
    (4) Precludes separation in appropriate circumstances for another 
reason set forth in this part; or
    (5) Precludes trial by court-martial in appropriate cases.
    I. Drug Abuse Rehabilitation Failure. 1. Basis. a. A member who has 
been referred to a program of rehabilitation for personal drug and 
alcohol abuse may be separated for failure through inability or refusal 
to participate in, cooperate in, or successfully complete such a program 
in the following circumstances:
    (1) There is a lack of potential for continued military service; or
    (2) Long-term rehabilitation is determined necessary and the member 
is transferred to a civilian medical facility for rehabilitation.
    b. Nothing in this provision precludes separation of a member who 
has been referred to such a program under any other provision of this 
part in appropriate cases.
    c. Drug abuse rehabilitation failures shall be reported separately 
from alcohol abuse rehabilitation failures. If separation is based on 
both, the primary basis shall be used for reporting requirements.
    2. Characterization or description. When a member is separated under 
this provision, characterization of service as Honorable or General 
(under honorable conditions) is authorized except when an Entry Level 
Separation is required under section C. of part 2. The relationship 
between voluntary submission for treatment and the evidence that may be 
considered on the issue of characterization is set forth in subparagraph 
C.2.c.(6)

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of part 2. The relationship between mandatory urinalysis and the 
evidence that may be considered on the issue of characterization is set 
forth in subparagraph C.2.c.(7) of part 2.
    3. Procedures. The Notification Procedure (section B. of part 3) 
shall be used.
    J. Alcohol Abuse Rehabilitation Failure. 1. Basis. a. A member who 
has been referred to a program of rehabilitation for drug and alcohol 
abuse may be separated for failure through inability or refusal to 
participate in, cooperate in, or successfully complete such a program in 
the following circumstances:
    (1) There is a lack of potential for continued military service; or
    (2) Long-term rehabilitation is determined necessary and the member 
is transferred to a civilian medical facility for rehabilitation.
    b. Nothing in this provision precludes separation of a member who 
has been referred to such a program under any other provision of this 
part in appropriate cases.
    c. Alcohol abuse rehabilitation failures shall be reported 
separately from drug abuse rehabilitation failures. If separation is 
based on both, the primary basis shall be used for reporting purposes.
    2. Characterization or description. When a member is separated under 
this provision, characterization of service as Honorable or General 
(under honorable conditions) is authorized except when an Entry Level 
Separation is required under section C. of part 2.
    3. Procedures. The Notification Procedure (section B. of part 3) 
shall be used.
    K. Misconduct. 1. Basis. a. Reasons. A member may be separated for 
misconduct when it is determined under the guidance set forth in section 
A. of part 2 that the member is unqualified for further military service 
by reason of one or more of the following circumstances:
    (1) Minor disciplinary infractions. A pattern of misconduct 
consisting solely of minor disciplinary infractions. If separation of a 
member in entry level status is warranted solely by reason of minor 
disciplinary infractions, the action should be processed under Entry 
Level Performance and Conduct (section F., above).
    (2) A pattern of misconduct. A pattern of misconduct consisting of 
(a) descreditable involvement with civil or military authorities or (b) 
conduct prejudicial to good order and discipline.
    (3) Commission of a serious offense. Commission of a serious 
military or civilian offense if in the following circumstances:
    (a) The specific circumstances of the offense warrant separation; 
and
    (b) A punitive discharge would be authorized for the same or a 
closely related offense under the Manual for Courts-Martial, 1969 
(Revised Edition), as amended.
    (4) Civilian conviction. (a) Conviction by civilian authorities or 
action taken which is tantamount to a finding of guilty, including 
similar adjudications in juvenile proceedings, when the specific 
circumstances of the offense warrant separation, and the following 
conditions are present:
    1 A punitive discharge would be authorized for the same or a closely 
related offense under the Manual for Courts-Martial; or
    2 The sentence by civilian authorities includes confinement for six 
months or more without regard to suspension or probation.
    (b) Separation processing may be initiated whether or not a member 
has filed an appeal of a civilian conviction or has stated an intention 
to do so. Execution of an approved separation should be withheld pending 
outcome of the appeal or until the time for appeal has passed, but the 
member may be separated prior to final action on the appeal upon request 
of the member or upon direction of the Secretary concerned.
    b. Reporting. The Deputy Assistant Secretary (Military Personnel and 
Force Management), Office of the ASD (MRA&L), shall require separate 
reports under each subparagraph in paragraph K.1.a. for misconduct by 
reason of drug abuse, unauthorized absence, and such other categories as 
may be appropriate.
    c. Related separations. Misconduct involving homosexuality shall be 
processed under section H. Misconduct involving a fraudulent enlistment 
is considered under subsection E.4., above.
    2. Counseling and rehabilitation. Separation processing for a 
pattern of misconduct (subparagraphs K.1.a. (1) and (2)) may not be 
initiated until the member has been counseled formally concerning 
deficiencies and has been afforded an opportunity to overcome those 
deficiencies as reflected in appropriate counseling or personnel 
records. If the sole basis of separation is a single offense 
(subparagraph K.1.a.(3)) or a civilian conviction or a similar juvenile 
adjudication (subparagraph K.1.a.(4)), the counseling and rehabilitation 
requirements are not applicable.
    3. Characterization or description. Characterization of service 
normally shall be Under Other Than Honorable Conditions, but 
characterization as General (under honorable conditions) may be 
warranted under the guidelines in section C. of part 2. For respondents 
who have completed entry level status, characterization of service as 
Honorable is not authorized unless the respondent's record is otherwise 
so meritorious that any other characterization clearly would be 
inappropriate and the separation is approved by a commander exercising 
general court-martial jurisdiction or higher authority as specified by 
the Secretary concerned. When characterization of service Under Other 
Than Honorable Conditions is not warranted for a member in entry level 
status under section C. of part 2, the separation shall be described as 
an Entry Level Separation.

[[Page 172]]

    4. Procedures. The Administrative Board Procedure (section C. of 
part 3) shall be used, except that use of the Notification Procedure 
(section B. of part 3) is authorized if separation is based upon 
subparagraphs K.1.a.(1) and K.1.a.(2) and characterization of service 
Under Other Than Honorable Conditions is not warranted under section C. 
of part 2.
    L. Separation in Lieu of Trial by Court-Martial. 1. Basis. A member 
may be separated upon request of trial by court-martial if charges have 
been preferred with respect to an offense for which a punitive discharge 
is authorized and it is determined that the member is unqualified for 
further military service under the guidance set forth in section A. of 
part 2. This provision may not be used when section B. of paragraph 127c 
of the Manual for Courts-Martial provides the sole basis for a punitive 
discharge unless the charges have been referred to a court-martial 
empowered to adjudge a punitive discharge.
    2. Characterization or description. Characterization of service 
normally shall be Under Other Than Honorable Conditions, but 
characterization as General (under honorable conditions) may be 
warranted under the guidelines in section C. of part 2. For respondents 
who have completed entry level status, characterization of service as 
Honorable is not authorized unless the respondent's record is otherwise 
so meritorious that any other characterization clearly would be 
inappropriate. When characterization of service Under Other Than 
Honorable Conditions is not warranted for a member in entry level status 
under section C. of part 2, the separation shall be described as an 
Entry Level Separation.
    3. Procedures. a. The request for discharge must be submitted in 
writing and signed by the member.
    b. The member shall be afforded opportunity to consult with counsel 
qualified under Article 27(b)(1) of the UCMJ. If the member refuses to 
do so, counsel shall prepare a statement to this effect, which shall be 
attached to the file, and the member shall state that he or she has 
waived the right to consult with counsel.
    c. Except when the member has waived the right to counsel, the 
request shall be signed by counsel.
    d. In the written request, the member shall state that he or she 
understands the following:
    (1) The elements of the offense or offenses charged;
    (2) That characterization of service Under Other Than Honorable 
Conditions is authorized; and
    (3) The adverse nature of such a characterization and possible 
consequences thereof.
    e. The Secretary concerned shall also require that one or both of 
the following matters be included in the request:
    (1) An acknowledgment of guilt of one or more of the offenses or any 
lesser included offenses for which a punitive discharge is authorized; 
or
    (2) A summary of the evidence or list of documents (or copies 
thereof) provided to the member pertaining to the offenses for which a 
punitive discharge is authorized.
    f. The Separation Authority shall be a commander exercising general 
court-martial jurisdiction or higher authority as specified by the 
Secretary concerned.
    g. Statements by the member or the member's counsel submitted in 
connection with a request under this subsection are not admissible 
against the member in a court-martial except as authorized under 
Military Rule of Evidence 410, Manual for Courts-Martial.
    M. Security. 1. Basis. When retention is clearly inconsistent with 
the interest of national security, a member may be separated by reason 
of security and under conditions and procedures established by the 
Secretary of Defense in DoD 5200.2-R.
    2. Characterization or description. Characterization of service or 
description of a separation shall be in accordance with section C. of 
part 2.
    N. Unsatisfactory Participation in the Ready Reserve. 1. Basis. A 
member may be separated for unsatisfactory participation in the Ready 
Reserve under criteria established by the Secretary concerned under 32 
CFR part 100 (DoD Directive 1215.13).
    2. Characterization or description. Characterization of service or 
description of a separation shall be in accordance with section C. of 
part 2 and 32 CFR part 100 (DoD Directive 1215.13).
    3. Procedures. The Administrative Board Procedure (section C. of 
part 3) shall be used, except that the Notification Procedure (section 
B. of part 3) may be used if characterization of service Under Other 
Than Honorable Conditions is not warranted under section C. of part 2.
    O. Secretarial Plenary Authority.
    1. Basis. Notwithstanding any limitation on separations provided in 
this part the Secretary concerned may direct the separation of any 
member prior to expiration of term of service after determining it to be 
in the best interests of the Service.
    2. Characterization or description. Honorable or General (under 
honorable conditions) as warranted under section C. of part 2 unless an 
Entry Level Separation is required under section C. of part 2.
    3. Procedures. Prior to involuntary separation, the Notification 
Procedure (section B. of part 3) shall be used, except the procedure for 
requesting an Administrative Board (paragraph B.1.g. of part 3) is not 
applicable.
    P. Reasons Established by the Military Departments. 1. Basis. The 
Military Departments may establish additional reasons for separation for 
circumstances not otherwise

[[Page 173]]

provided for in this part to meet specific requirements, subject to 
approval by the ASD (MRA&L).
    2. Counseling and rehabilitation. Separation processing may not be 
initiated until the member has been counseled formally concerning 
deficiencies and has been afforded an opportunity to overcome those 
deficiencies as reflected in appropriate counseling or personnel records 
except when the Military Department concerned provides in its 
implementing document that counseling and rehabilitation requirements 
are not applicable for the specific reason for separation.
    3. Characterization or description. Characterization of service or 
description of a separation shall be in accordance with section C. of 
part 2.
    4. Procedures. The procedures established by the Military 
Departments shall be consistent with the procedures contained in this 
part insofar as practicable.

          Part 2--Guidelines on Separation and Characterization

    A. Separation. 1. Scope. This general guidance applies when 
referenced in part 1. Further guidance is set forth under the specific 
reasons for separation in part 1.
    2. Guidance. a. There is a substantial investment in the training of 
persons enlisted or inducted into the Military Services. As a general 
matter, reasonable efforts at rehabilitation should be made prior to 
initiation of separation proceedings.
    b. Unless separation is mandatory, the potential for rehabilitation 
and further useful military service shall be considered by the 
Separation Authority and, where applicable, the Administrative Board. If 
separation is warranted despite the potential for rehabilitation, 
consideration should be given to suspension of the separation, if 
authorized.
    c. Counseling and rehabilitation efforts are a prerequisite to 
initiation of separation proceedings only insofar as expressly set forth 
under specific requirements for separation in part 1. An alleged or 
established inadequacy in previous rehabilitative efforts does not 
provide a legal bar to separation.
    d. The following factors may be considered on the issue of retention 
or separation, depending on the circumstances of the case:
    (1) The seriousness of the circumstances forming the basis for 
initiation of separation proceedings, and the effect of the member's 
continued retention on military discipline, good order, and morale.
    (2) The likelihood of continuation or recurrence of the 
circumstances forming the basis for initiation of separation 
proceedings.
    (3) The likelihood that the member will be a disruptive or 
undesirable influence in present or future duty assignments.
    (4) The ability of the member to perform duties effectively in the 
present and in the future, including potential for advancement or 
leadership.
    (5) The member's rehabilitative potential.
    (6) The member's entire military record. (a) This may include:
    1 Past contributions to the Service, assignments, awards and 
decorations, evaluation ratings, and letters of commendation;
    2 Letters of reprimand or admonition, counseling records, records of 
nonjudicial punishment, records of conviction by court-martial and 
records of involvement with civilian authorities; and
    3 Any other matter deemed relevant by the Board, if any, or the 
Separation Authority, based upon the specialized training, duties, and 
experience of persons entrusted by this part with recommendations and 
decisions on the issue of separation or retention.
    (b) The following guidance applies to consideration of matter under 
subparagraph A.2.d.(6)(a):
    1 Adverse matter from a prior enlistment or period of military 
service, such as records of nonjudicial punishment and convictions by 
courts-martial, may be considered only when such records would have a 
direct and strong probative value in determining whether separation is 
appropriate. The use of such records ordinarily shall be limited to 
those cases involving patterns of conduct manifested over an extended 
period of time.
    2 Isolated incidents and events that are remote in time normally 
have little probative value in determining whether administrative 
separation should be effected.
    3. Limitations on separation actions. A member may not be separated 
on the basis of the following:
    a. Conduct that has been the subject of judicial proceedings 
resulting in an acquittal or action having the effect thereof except in 
the following circumstances:
    (1) When such action is based upon a judicial determination not 
going to the guilt or innocence of the respondent; or
    (2) When the judicial proceeding was conducted in a State or foreign 
court and the separation is approved by the Secretary concerned.
    b. Conduct that has been the subject of a prior Administrative Board 
in which the Board entered an approved finding that the evidence did not 
sustain the factual allegations concerning the conduct except when the 
conduct is the subject of a rehearing ordered on the basis of fraud or 
collusion; or
    c. Conduct that has been the subject of an administrative separation 
proceeding resulting in a final determination by a Separation Authority 
that the member should be retained, except in the following 
circumstances:
    (1) When there is subsequent conduct or performance forming the 
basis, in whole or in part, for a new proceeding;

[[Page 174]]

    (2) When there is new or newly discovered evidence that was not 
reasonably available at the time of the prior proceeding; or
    (3) When the conduct is the subject of a rehearing ordered on the 
basis of fraud or collusion.
    B. Suspension of Separation. 1. Suspension. a. Unless prohibited by 
this part a separation may be suspended for a specified period of not 
more than 12 months by the Separation Authority or higher authority if 
the circumstances of the case indicate a reasonable likelihood or 
rehabilitation.
    b. During the period of suspension, the member shall be afforded an 
opportunity to meet appropriate standards of conduct and duty 
performance.
    c. Unless sooner vacated or remitted, execution of the approved 
separation shall be remitted upon completion of the probationary period, 
upon termination of the member's enlistment or period of obligated 
service, or upon decision of the Separation Authority that the goal of 
rehabilitation has been achieved.
    2. Action during the period of suspension. a. During the period of 
suspension, if there are further grounds for separation under part 1, 
one or more of the following actions may be taken:
    (1) Disciplinary action;
    (2) New administrative action; or
    (3) Vacation of the suspension accompanied by execution of the 
separation if the member engages in conduct similar to that for which 
separation was approved (but suspended) or otherwise fails to meet 
appropriate standards of conduct and duty performance.
    b. Prior to vacation of a suspension, the member shall be notified 
in writing of the basis for the action and shall be afforded the 
opportunity to consult with counsel (as provided in paragraph B.1.f. of 
part 3) and to submit a statement in writing to the Separation 
Authority. The respondent shall be provided a reasonable period of time, 
but not less than 2 working days, to act on the notice. If the 
respondent identifies specific legal issues for consideration by the 
Separation Authority, the matter shall be reviewed by a judge advocate 
or civilian lawyer employed by the government prior to final action by 
the Separation Authority.
    C. Characterization of Service or Description of Separation. 1. 
Types of characterization or description. a. At separation, the 
following types of characterization of service or description of 
separation are authorized under this part:
    (1) Separation with characterization of service as Honorable, 
General (under honorable conditions), or Under Other Than Honorable 
Conditions.
    (2) Entry Level Separation.
    (3) Order of release from the custody and control of the Military 
Services by reason of void enlistment or induction.
    (4) Separation by being dropped from the rolls of the Service.
    b. Any of the types of separation listed in this section may be used 
in appropriate circumstances unless a limitation set forth in this 
section or in part 1 (Reasons for Separation).
    2. Characterization of service. a. General considerations. (1) 
Characterization at separation shall be based upon the quality of the 
member's service, including the reason for separation and guidance in 
paragraph C.2.b., below, subject to the limitations set forth under 
various reasons for separation in part 1. The quality of service will be 
determined in accordance with standards of acceptable personal conduct 
and performance of duty for military personnel. These standards are 
found in the 10 U.S.C., sections 801-940, UCMJ, directives and 
regulations issued by the Department of Defense and the Military 
Departments, and the time-honored customs and traditions of military 
service.
    (2) The quality of service of a member on active duty or active duty 
for training is affected adversely by conduct that is of a nature to 
bring discredit on the Military Services or is prejudicial to good order 
and discipline, regardless of whether the conduct is subject to UCMJ 
jurisdiction. Characterization may be based on conduct in the civilian 
community, and the burden is on the respondent to demonstrate that such 
conduct did not adversely affect the respondent's service.
    (3) The reasons for separation, including the specific circumstances 
that form the basis for the separation, shall be considered on the issue 
of characterization. As a general matter, characterization will be based 
upon a pattern of behavior rather than an isolated incident. There are 
circumstances, however, in which the conduct or performance of duty 
reflected by a single incident provides the basis for characterization.
    (4) Due consideration shall be given to the member's age, length of 
service, grade, aptitude, physical and mental condition, and the 
standards of acceptable conduct and performance of duty.
    b. Types of characterization. (1) Honorable. The Honorable 
characterization is appropriate when the quality of the member's service 
generally has met the standards of acceptable conduct and performance of 
duty for military personnel, or is otherwise so meritorious that any 
other characterization would be clearly inappropriate. In the case of an 
Honorable Discharge, an Honorable Discharge Certificate (DD Form 256) 
will be awarded and a notation will be made on the appropriate copies of 
the DD Form 214/5 in accordance with 32 CFR part 45 (DoD Directive 
1336.1).
    (2) General (under honorable conditions). If a member's service has 
been honest and faithful, it is appropriate to characterize that

[[Page 175]]

service under honorable conditions. Characterization of service as 
General (under honorable conditions) is warranted when significant 
negative aspects of the member's conduct or performance of duty outweigh 
positive aspects of the member's military record.
    (3) Under Other Than Honorable Conditions. (a) This characterization 
may be issued in the following circumstances:
    1 When the reason for separation is based upon a pattern of behavior 
that constitutes a significant departure from the conduct expected of 
members of the Military Services.
    2 When the reason for separation is based upon one or more acts or 
omissions that constitute a significant departure from the conduct 
expected of members of the Military Services. Examples of factors that 
may be considered include the use of force or violence to produce 
serious bodily injury or death, abuse of a special position of trust, 
disregard by a superior of customary superior-subordinate relationships, 
acts or omissions that endanger the security of the United States or the 
health and welfare of other members of the Military Services, and 
deliberate acts or omissions that seriously endanger the health and 
safety of other persons.
    (b) This characterization is authorized only if the member has been 
afforded the opportunity to request an Administrative Board, except as 
provided in section L. of part 1 (Separation in Lieu of Trial by Courts-
Martial).
    c. Limitations on characterization. Except as otherwise provided in 
this paragraph, characterization will be determined solely by the 
member's military record during the current enlistment or period of 
service to which the separation pertains, plus any extensions thereof 
prescribed by law or regulation or effected with the consent of the 
member.
    (1) Prior service activities, including records of conviction by 
courts-martial, records of absence without leave, or commission of other 
offenses for which punishment was not imposed shall not be considered on 
the issue of characterization. To the extent that such matters are 
considered on the issue of retention or separation (subsection A.2. of 
this part 2), the record of proceedings may reflect express direction 
that such information shall not be considered on the issue of 
characterization.
    (2) Preservice activities may not be considered on the issue of 
characterization except as follows: in a proceeding concerning 
fraudulent entry into military service (subsection E.4. of part 1), 
evidence of preservice misrepresentations about matters that would have 
precluded, postponed, or otherwise affected the member's eligibility for 
enlistment or induction may be considered on the issue of 
characterization.
    (3) The limitations in subsection A.3., above, as to matters that 
may be considered on the issue of separation are applicable to matters 
that may be considered on the issue of characterization.
    (4) When the sole basis for separation is a serious offense which 
resulted in a conviction by a court-martial that did not impose a 
punitive discharge, the member's service may not be characterized Under 
Other Than Honorable Conditions unless such characterization is approved 
by the Secretary concerned.
    (5) Conduct in the civilian community of a member of a reserve 
component who is not on active duty or active duty for training may form 
the basis for characterization Under Other Than Honorable Conditions 
only if such conduct affects directly the performance of military 
duties. Such conduct may form the basis of characterization as General 
(under honorable conditions) only if such conduct has an adverse impact 
on the overall effectiveness of the service, including military morale 
and efficiency.
    (6) A member's voluntary submission to a DoD treatment and 
rehabilitation program (for personal use of drugs) and evidence provided 
voluntarily by the member concerning personal use of drugs as part of 
initial entry into such a program may not be used against the member on 
the issue of characterization. This limitation does not preclude the 
following actions:
    (a) The introduction of evidence for impeachment or rebuttal 
purposes in any proceeding in which the evidence of drug abuse (or lack 
thereof) has been first introduced by the member; and
    (b) Taking action based on independently derived evidence, including 
evidence of drug abuse after initial entry into the treatment and 
rehabilitation program.
    (7) The results of mandatory urinalysis may be used on the issue of 
characterization except as provided in the Deputy Secretary of Defense 
Memorandum, ``Alcohol and Drug Abuse,'' December 28, 1981, and rules 
promulgated thereunder.
    3. Uncharacterized separations. a. Entry Level Separation. (1) A 
separation shall be described as an Entry Level Separation if separation 
processing is initiated while a member is in entry level status, except 
in the following circumstances:
    (a) When characterization Under Other Than Honorable Conditions is 
authorized under the reason for separation (part 1) and is warranted by 
the circumstances of the case; or
    (b) The Secretary concerned, on a case-by-case basis, determines 
that characterization of service as Honorable is clearly warranted by 
the presence of unusual circumstances involving personal conduct and 
performance of military duty. This characterization is authorized when 
the member is separated under part 1 by reason of selected changes in 
service obligation (section B.), Convenience

[[Page 176]]

of the Government (section C.), Disability (section D.), Secretarial 
Plenary Authority (secton O.), or an approved reason established by the 
Military Department (section P.).
    (2) In time of mobilization or in other appropriate circumstances, 
the ASD (MRA&L) may authorize the Secretary concerned to delegate the 
authority in subparagraph (1)(b), above, (concerning the Honorable 
characterization) to a general court-martial convening authority with 
respect to members serving in operational units.
    (3) With respect to administrative matters outside this part that 
require a characterization as Honorable or General, an Entry Level 
Separation shall be treated as the required characterization. This 
provision does not apply to administrative matters that expressly 
require different treatment of an Entry Level Separation except as 
provided in subparagraph (4), below.
    (4) In accordance with 10 U.S.C. 1163, an Entry Level Separation for 
a member of a Reserve Component separated from the Delayed Entry Program 
is ``under honorable conditions.''
    b. Void enlistments or inductions. A member shall not receive a 
discharge, characterization of service at separation, or an Entry Level 
Separation if the enlistment or induction is void except when a 
constructive enlistment arises and such action is required under 
subparagraph (3), below. If characterization or an Entry Level 
Separation is not required, the separation shall be described as an 
order of release from custody or control of the Military Services.
    (1) An enlistment is void in the following circumstances:
    (a) If it was effected without the voluntary consent of a person who 
has the capacity to understand the significance of enlisting in the 
Military Services, including enlistment of a person who is intoxicated 
or insane at the time of enlistment. 10 U.S.C. 504; Article 2(b), UCMJ.
    (b) If the person is under 17 years of age. 10 U.S.C. 505.
    (c) If the person is a deserter from another Military Service. 10 
U.S.C. 504.
    (2) Although an enlistment may be void at its inception, a 
constructive enlistment shall arise in the case of a person serving with 
a Military Service who:
    (a) Submitted voluntarily to military authority;
    (b) Met the mental competency and minimum 10 U.S.C. age 
qualifications of sections 504 and 505 of, at the time of voluntary 
submission to military authority;
    (c) Received military pay or allowances; and
    (d) Performed military duties.
    (3) If an enlistment that is void at its inception is followed by a 
constructive enlistment within the same term of service, 
characterization of service or description of separation shall be in 
accordance with subsection C.2. or paragraph C.3.a. of this part 2, as 
appropriate; however, if the enlistment was void by reason of desertion 
from another Military Service, the member shall be separated by an order 
of release from the custody and control of the Service regardless of any 
subsequent constructive enlistment. The occurrence of such a 
constructive enlistment does not preclude the Military Departments, in 
appropriate cases, from either retaining the member or separating the 
member under section E. of part 1 on the basis of the circumstances that 
occasioned the original void enlistment or upon any other basis for 
separation provided in this part.
    c. Dropping from the rolls. A member may be dropped from the rolls 
of the Service when such action is authorized by the Military Department 
concerned and a characterization of service or other description of 
separation is not authorized or warranted.

                    Part 3--Procedures For Separation

    A. Scope. 1. The supplementary procedures in this part are 
applicable only when required under a specific reason for separation 
(part 1). These procedures are subject to the requirements set forth in 
part 1 with respect to specific reasons for separation.
    2. When a member is processed on the basis of multiple reasons for 
separation, the following guidelines apply to procedural requirements 
(including procedural limitations on characterization of service or 
description of separation):
    a. The requirements for each reason will be applied to the extent 
practicable.
    b. If a reason for separation set forth in the notice of proposed 
action requires processing under the Administrative Board Procedure 
(section C., below), the entire matter shall be processed under section 
C.
    c. If more than one reason for separation is approved, the guidance 
on characterization that provides the greatest latitude may be applied.
    d. When there is any other clear conflict between a specific 
requirement applicable to one reason and a general requirement 
applicable to another reason, the specific requirement shall be applied.
    e. If a conflict in procedures cannot be resolved on the basis of 
the foregoing principles, the procedure most favorable to the respondent 
shall be used.
    B. Notification Procedure. 1. Notice. If the Notification Procedure 
is initiated under part 1, the respondent shall be notified in writing 
of the matter set forth in this section.
    a. The basis of the proposed separation, including the circumstances 
upon which the action is based and a reference to the applicable 
provisions of the Military Department's implementing regulation.

[[Page 177]]

    b. Whether the proposed separation could result in discharge, 
release from active duty to a reserve component, transfer from the 
Selected Reserve to the IRR, release from custody or control of the 
Military Services, or other form of separation.
    c. The least favorable characterization of service or description of 
separation authorized for the proposed separation.
    d. The right to obtain copies of documents that will be forwarded to 
the Separation Authority supporting the basis of the proposed 
separation. Classified documents may be summarized.
    e. The respondent's right to submit statements.
    f. The respondent's right to consult with counsel qualified under 
Article 27(b)(1) of the UCMJ. Nonlawyer counsel may be appointed when 
the respondent is deployed aboard a vessel or in similar circumstances 
of separation from sufficient judge advocate resources as determined 
under standards and procedures specified by the Secretary concerned. The 
respondent also may consult with civilian counsel retained at the 
member's own expense.
    g. If the respondent has 6 or more years of total active and reserve 
military service, the right to request an Administrative Board (section 
C.).
    h. The right to waive paragraphs d., e., f. or g., above, after 
being afforded a reasonable opportunity to consult with counsel, and 
that failure to respond shall constitute a waiver of the right.
    2. Additional notice requirements. a. If separation processing is 
initiated on the basis of more than one reason under part 1, the 
requirements of paragraph B.1.a. apply to all proposed reasons for 
separation.
    b. If the respondent is in civil confinement, absent without leave, 
or in a reserve component not on active duty or upon transfer to the 
IRR, the relevant notification procedures in sections D., E., or F. of 
this part 3 apply.
    c. Additional notification requirements are set forth in part 1, 
sections C. and D., when characterization of service as General (under 
honorable conditions) is authorized and the member is processed for 
separation by reason of Convenience of the Government or Disability.
    3. Response. The respondent shall be provided a reasonable period of 
time, but not less than 2 working days, to act on the notice. An 
extension may be granted upon a timely showing of good cause by the 
respondent. The decision of the respondent on each of the rights set 
forth in paragraphs 1.d. through g., above, and applicable provisions 
referenced in subsection 2. shall be recorded and signed by the 
respondent and counsel, subject to the following limitation:
    a. If notice by mail is authorized under sections D., E., or F. of 
this part 3 and the respondent fails to acknowledge receipt or submit a 
timely reply, that fact shall constitute a waiver of rights and an 
appropriate notation shall be recorded on a retained copy of the 
appropriate form.
    b. If the respondent declines to respond as to the selection of 
rights, such declination shall constitute a waiver of rights and an 
appropriate notation will be made on the form provided for respondent's 
reply. If the respondent indicates that one or more of the rights will 
be exercised, but declines to sign the appropriate form, the selection 
of rights will be noted and an appropriate notation as to the failure to 
sign will be made.
    4. Separation Authority. a. The Separation Authority for actions 
initiated under the Notification Procedure shall be a special court-
martial convening authority or higher authority. The Secretary concerned 
also may authorize a commanding officer in grade 0-5 or above with a 
judge advocate or legal advisor available to the command to act as a 
Separation Authority for a specified reason for separation, subject to 
approval by the ASD(MRA&L). When the case has been initiated under the 
Administrative Board Procedure and the member has waived the right to a 
hearing under section C.4., the Separation Authority shall be an 
official designated under subsection C.6., below.
    b. The action of the Separation Authority shall be recorded.
    c. The Separation Authority shall determine whether there is 
sufficient evidence to verify the allegations set forth in the 
notification of the basis for separation. If an allegation is not 
supported by a preponderance of the evidence, it may not be used as a 
basis for separation.
    d. If there is a sufficient factual basis for separation, the 
Separation Authority shall determine whether separation is warranted 
under the guidance in sections A. and B. of part 2. On the basis of that 
guidance, the Separation Authority shall direct one of the following 
actions:
    (1) Retention;
    (2) Separation for a specific reason under part 1; or
    (3) Suspended separation in accordance with the guidance in section 
B. part 2.
    e. If the Separation Authority directs separation or suspended 
separation on the basis of more than one reason under part 1, the 
Separation Authority shall designate the most appropriate basis as the 
primary reason for reporting purposes.
    f. If separation or a suspended separation is directed, the 
Separation Authority shall assign a characterization or description in 
accordance with section C. of part 2.
    g. Except when characterization Under Other Than Honorable 
Conditions is directed or the member is separated on the basis of 
homosexuality or a void enlistment or induction, the Secretary concerned 
may authorize

[[Page 178]]

the Separation Authority or higher authority to make a recommendation or 
determination as to whether the respondent should be retained in the 
Ready Reserve as a mobilization asset to fulfill the respondent's total 
military obligation. This option applies in cases involving separation 
from active duty or from the Selected Reserve. Section E. of this part 3 
is applicable if such action is approved.
    C. Administrative Board Procedure. 1. Notice. If an Administrative 
Board is required, the respondent shall be notified in writing of the 
matters set forth in this section.
    a. The basis of the proposed separation, including the circumstances 
upon which the action is based and reference to the applicable 
provisions of the Military Department's implementing regulation.
    b. Whether the proposed separation could result in discharge, 
release from active duty to a reserve component, transfer from the 
Selected Reserve to the IRR, release from the custody or control of the 
Military Services, or other form of separation.
    c. The least favorable characterization of service or description of 
separation authorized for the proposed separation.
    d. The respondent's right to consult with counsel as prescribed in 
paragraph B.1.f. of this part 3. However, nonlawyer counsel may not 
represent a respondent before an Administrative Board unless (1) the 
respondent expressly declines appointment of counsel qualified under 
Article 27(b) (1) of the UCMJ (10 U.S.C.) and requests a specific 
nonlawyer counsel; or (2) the Separation Authority assigns nonlawyer 
counsel as assistant counsel.
    e. The right to obtain copies of documents that will be forwarded to 
the Separation Authority supporting the basis of the proposed 
separation. Classified documents may be summarized.
    f. The respondent's right to request a hearing before an 
Administrative Board.
    g. The respondent's right to present written statements instead of 
board proceedings.
    h. The respondent's right to representation at the Administrative 
Board either by military counsel appointed by the Convening Authority or 
by military counsel of the respondent's own choice (if counsel of choice 
is determined to be reasonably available under regulations of the 
Secretary concerned) but not both.
    i. The right to representation at the Administrative Board by 
civilian counsel at the respondent's own expense.
    j. The right to waive the rights in paragraphs d. through i., above.
    k. That failure to respond after being afforded a reasonable 
opportunity to consult with counsel constitutes a waiver of the rights 
in paragraphs d. through i., above.
    l. Failure to appear without good cause at a hearing constitutes 
waiver of the right to be present at the hearing.
    2. Additional notice requirements. a. If separation processing is 
initiated on the basis of more than one reason under part 1, the 
requirements of paragraph C.1.a. apply to all proposed reasons for 
separation.
    b. If the respondent is in civil confinement, absent without leave, 
or in a reserve component not on active duty or upon transfer to the 
IRR, the relevant notification procedures in sections D., E., or F. of 
this part 3 apply.
    c. Additional notification requirements are set forth in sections C. 
and D., part 1, when characterization of service as General (under 
honorable conditions) is authorized and the member is processed for 
separation by reason of Convenience of the Government or Disability.
    3. Response. The respondent shall be provided a reasonable period of 
time, but not less than 2 working days, to act on the notice. An 
extension may be granted upon a timely showing of good cause by the 
respondent. The decision of the respondent on each of the rights set 
forth in paragraphs 1.d. through 1.i., above, and applicable provisions 
referenced in subsection 2., above, shall be recorded and signed by the 
respondent and counsel, subject to the following limitations:
    a. If notice by mail is authorized under sections D., E., or F. of 
this part 3 and the respondent fails to acknowledge receipt or submit a 
timely reply, that fact shall constitute a waiver of rights and an 
appropriate notation shall be recorded on a retained copy of the 
appropriate form.
    b. If the respondent declines to respond as to the selection of 
rights, such declination shall constitute a waiver of rights and an 
appropriate notation will be made on the form provided for respondent's 
reply. If the respondent indicates that one or more of the rights will 
be exercised, but declines to sign the appropriate form, the selection 
of rights will be noted and an appropriate notation as to the failure to 
sign will be made.
    4. Waiver. a. If the right to a hearing before an Administrative 
Board is waived, the case will be processed under subsection B.4. of 
this part 3 (Notification Procedure), but the Separation Authority in 
such cases shall be an official designated under subsection C.6.
    b. When authorized by the Secretary concerned, a respondent entitled 
to an Administrative Board may exercise a conditional waiver after a 
reasonable opportunity to consult with counsel under paragraph C.1.d. A 
conditional waiver is a statement initiated by a respondent waiving the 
right to a board proceeding contingent upon receiving a characterization 
of service or description of separation higher than the least favorable 
characterization or description authorized for the basis of separation 
set forth in the notice to the respondent.

[[Page 179]]

    5. Hearing procedure. If a respondent requests a hearing before an 
Administrative Board, the following procedures are applicable:
    a. Composition. (1) The Convening Authority shall appoint to the 
Administrative Board at least three experienced commissioned, warrant, 
or noncommissioned officers. Enlisted personnel appointed to the Board 
shall be in grade E-7 or above, and shall be senior to the respondent. 
At least one member of the Board shall be serving in the grade of 0-4 or 
higher, and a majority shall be commissioned or warrant officers. The 
senior member shall be the president of the Board. The Convening 
Authority also may appoint to the Board a nonvoting recorder. A 
nonvoting legal advisor may be appointed to assist the Board if 
authorized by the Secretary concerned.
    (2) If the respondent is an enlisted member of a reserve component 
or holds an appointment as a reserve commissioned or warrant officer, 
the Board shall include at least one Reserve officer as a voting member. 
Voting members shall be senior to the respondent's reserve grade. See 10 
U.S.C. 266.
    (3) The Convening Authority shall insure that the opportunity to 
serve on Administrative Boards is given to women and minorities. The 
mere appointment or failure to appoint a member of such a group to the 
Board, however, does not provide a basis for challenging the proceeding.
    (4) The respondent may challenge a voting member of the Board or the 
legal advisor, if any, for cause only.
    b. Presiding officer. The president shall preside and rule finally 
on all matters of procedure and evidence, but the rulings of the 
president may be overruled by a majority of the Board. If appointed, the 
legal advisor shall rule finally on all matters of evidence and 
challenges except challenges to himself.
    c. Witnesses. (1) The respondent may request the attendance of 
witnesses in accordance with the implementing instruction of the 
Military Department concerned.
    (2) In accordance with such instructions, the respondent may submit 
a written request for TDY or invitational travel orders for witnesses. 
Such a request shall contain the following matter:
    (a) A synoposis of the testimony that the witness is expected to 
give.
    (b) An explanation of the relevance of such testimony to the issues 
of separation or characterization.
    (c) An explanation as to why written or recorded testimony would not 
be sufficient to provide for a fair determination.
    (3) The Convening Authority may authorize expenditure of funds for 
production of witnesses only if the presiding officer (after 
consultation with a judge advocate) or the legal advisor (if appointed) 
determines that:
    (a) The testimony of a witness is not cumulative;
    (b) The personal appearance of the witness is essential to a fair 
determination on the issues of separation or characterization;
    (c) Written or recorded testimony will not accomplish adequately the 
same objective;
    (d) The need for live testimony is substantial, material, and 
necessary for a proper disposition of the case; and
    (e) The significance of the personal appearance of the witness, when 
balanced against the practical difficulties in producing the witness, 
favors production of the witness. Factors to be considered in relation 
to the balancing test include, but are not limited to, the cost of 
producing the witness, the timing of the request for production of the 
witness, the potential delay in the proceeding that may be caused by 
producing the witness, or the likelihood of significant interference 
with military operational deployment, mission accomplishment, or 
essential training.
    (4) If the Convening Authority determines that the personal 
testimony of a witness is required, the hearing will be postponed or 
continued if necessary to permit the attendance of the witness.
    (5) The hearing shall be continued or postponed to provide the 
respondent with a reasonable opportunity to obtain a written statement 
from the witness if a witness requested by the respondent is unavailable 
in the following circumstances:
    (a) When the presiding officer determines that the personal 
testimony of the witness is not required;
    (b) When the commanding officer of a military witness determines 
that military necessity precludes the witness' attendance at the 
hearing; or
    (c) When a civilian witness declines to attend the hearing.
    (6) Paragraph (5)(c), above, does not authorize a Federal employee 
to decline to appear as a witness if directed to do so in accordance 
with applicable procedures of the employing agency.
    d. Record of proceedings. In cases where the Board recommends 
separation, the record of the proceedings shall be kept in summarized 
form unless a verbatim record is required by the Secretary concerned. In 
cases where the Board recommends retention, a record of the proceedings 
is optional unless required by the Secretary concerned. However, a 
summarized or verbatim record shall be prepared in any cases where the 
board recommends retention and the Separation Authority elects to 
forward the matter to the Secretary concerned under subparagraph 
C.6.d.(2)(6). The Board reporter shall retain all materials necessary to 
prepare a transcript should the Separation Authority elect to forward 
the

[[Page 180]]

case to the Secretary. In all cases, the findings and recommendations of 
the Board shall be in verbatim form.
    e. Presentation of evidence. The rules of evidence for courts-
martial and other judicial proceedings are not applicable before an 
Administrative Board. Reasonable restrictions shall be observed, 
however, concerning relevancy and competency of evidence.
    f. Rights of the respondent. (1) The respondent may testify in his 
or her own behalf, subject to the provisions of Article 31(a), UCMJ (10 
U.S.C.).
    (2) At any time during the proceedings, the respondent or counsel 
may submit written or recorded matter for consideration by the Board.
    (3) The respondent or counsel may call witnesses in his or her 
behalf.
    (4) The respondent or counsel may question any witness who appears 
before the Board.
    (5) The respondent or counsel may present argument prior to when the 
Board closes the case for deliberation on findings and recommendations.
    g. Findings and recommendations. (1) The Board shall determine its 
findings and recommendations in closed session. Only voting members of 
the Board shall be present.
    (2) The Board shall determine whether each allegation set forth in 
the notice of proposed separation is supported by a preponderance of the 
evidence.
    (3) The Board shall then determine under the guidance in section A. 
of part 2 whether the findings warrant separation with respect to the 
reason for separation set forth in the Notice. If more than one reason 
was contained in the Notice, there shall be a separate determination for 
each reason.
    (4) The Board shall make recommendations on the following:
    (a) Retention or separation. The Board shall recommend retention or 
separation.
    (b) Suspension of separation. If the Board recommends separation, it 
may recommend that the separation be suspended in accordance with 
section B. of part 2, but the recommendation of the Board as to 
suspension is not binding on the Separation Authority.
    (c) Characterization of service or description of separation. If 
separation or suspended separation is recommended, the Board shall 
recommend a characterization of service or description of separation as 
authorized in part 1 (Reasons for Separation) in accordance with the 
guidance in section C. of part 2.
    (d) Transfer to the Ready Reserve. Except when the Board has 
recommended separation on the basis of homosexuality or has recommended 
characterization of service Under Other Than Honorable Conditions, the 
Secretary Concerned may authorize the Board to make a recommendation as 
to whether the respondent should be retained in the Ready Reserve as a 
mobilization asset to fulfill the respondent's total military 
obligation. This option applies to cases involving separation from 
active duty or from the Selected Reserve. Section E. of this part 3 is 
applicable if the action is approved.
    6. Separation Authority. A. The separation Authority for actions 
initiated under the Administrative Board Procedure shall be a general 
court-martial convening authority or higher authority. The Secretary 
concerned also may authorize a commanding officer in grade 0-7 or above 
with a judge advocate or legal advisor available to his command to act 
as a separation authority in specified circumstances. When an 
Administrative Board recommends characterization of service as Honorable 
or General (under honorable conditions), the Separation Authority may be 
exercised by an officer designated under subsection B.4. When the case 
has been initiated under the Notification Procedure and the hearing is a 
result of a request under paragraph B.1.g., the Separation Authority 
shall be as designated in subsection B.4.
    b. In every case in which characterization of sevice Under Other 
Than Honorable Conditions is recommended, the record of the Board's 
proceedings will be reviewed by a judge advocate or civilian attorney 
employed by the Military Department prior to action by the Separation 
Authority. Such review is not required when another characterization is 
recommended unless the respondent identifies specific legal issues for 
consideration by the Separation Authority.
    c. The respondent will be provided with a copy of the Board's 
statement of facts and recommendations.
    d. The Separation Authority shall take action in accordance with 
this subparagraph, the requirements of part 1 with respect to the reason 
for separation, and the guidance in part 2 on separation and 
characterization.
    (1) If the Separation Authority approves the recommendations of the 
Board on the issue of separation or characterization (or both) this 
constitutes approval of the Board's findings and recommendations under 
paragraph C.5.g. unless the Separation Authority expressly modifies such 
findings or recommendations.
    (2) If the Board recommends retention, the Separation Authority may 
take one of the following actions:
    (a) Approve the recommendation.
    (b) Forward the matter to the Secretary concerned with a 
recommendation for separation based upon the circumstances of the case. 
In such a case, the Secretary may direct retention or separation. If the 
Secretary approves separation, the characterization of service or 
description of separation will be Honorable, General (under honorable 
conditions) or an Entry Level Separation under the guidance in section 
C. of part 2.
    (3) If the Board recommends separation, the Separation Authority 
may:
    (a) Approve the Board's recommendation;

[[Page 181]]

    (b) Approve the Board's recommendation, but modify the 
recommendations by one or more of the following actions when 
appropriate:
    1 Approve the separation but suspend execution as provided in 
section B. of part 2.
    2 Change the character of service or description of separation to a 
more favorable characterization or description.
    3 Change the Board's recommendation, if any, concerning transfer to 
the IRR.
    (c) Disapprove the Board's recommendation and retain the respondent.
    (4) If the Separation Authority approves the Board's findings and 
recommendations in whole or in part with respect to more than one reason 
under part 1, the Separation Authority shall designate the most 
appropriate basis as the primary reason for reporting purposes.
    (5) If the Separation Authority finds legal prejudice to a 
substantial right of the respondent or determines that the findings of 
the Board have been obtained by fraud or collusion, the case may be 
referred to a new board. No member of the new board shall have served on 
a prior board that considered the case. The Separation Authority may not 
approve findings and recommendations less favorable to the respondent 
than those rendered by the previous board unless the Separation 
Authority finds that fraud or collusion in the previous board is 
attributable to the respondent or an individual acting on the 
respondent's behalf.
    D. Additional Provisions Concerning Members Confined by Civil 
Authorities. 1. If proceedings under this part have been initiated 
against a respondent confined by civil authorities, the case may be 
processed in the absence of the respondent. Paragraph C.5.e. of this 
part 3 is not applicable except insofar as such rights can be exercised 
by counsel on behalf of the respondent.
    2. The following requirements apply:
    a. The notice shall contain the matter set forth in subsection B.1. 
of this part or subsection C.1. (Notice in the Administrative Board 
Procedure), as appropriate. The notice shall be delivered personally to 
the respondent or sent by registered mail or certified mail, return 
receipt requested (or by an equivalent form of notice if such service is 
not available for delivery by U.S. mail at an address outside the United 
States). If the member refuses to acknowledge receipt of notice, the 
individual who mails the notification shall prepare a Sworn Affidavit of 
Service by Mail (see 32 CFR part 100) [DoD Directive 1215.13], which 
will be inserted in the member's personnel file together with PS Form 
3800.
    b. If delivered personally, receipt shall be acknowledged in writing 
by the respondent. If the respondent does not acknowledge receipt, the 
notice shall be sent by mail as provided in paragraph 2.a., above.
    c. The notice shall state that the action has been suspended until a 
specific date (not less than 30 days from the date of delivery) in order 
to give the respondent the opportunity to exercise the rights set forth 
in the notice. If respondent does not reply by such date, the separation 
authority shall take appropriate action under subsection B.4. of this 
part 3.
    d. The name and address of the military counsel for appointed 
consultation shall be specified in the notice.
    e. If the case involves entitlement to an Administrative Board, the 
respondent shall be notified that the board will proceed in the 
respondent's absence and that the case may be presented on respondent's 
behalf by counsel for the respondent.
    E. Additional Requirements for Certain Members of Reserve 
Components. 1. Members of reserve components not on active duty. a. If 
proceedings under this chapter have been initiated against a member of a 
reserve component not on active duty, the case may be processed in the 
absence of the member in the following circumstances:
    (1) At the request of the member;
    (2) If the member does not respond to the notice of proceedings on 
or before the suspense date provided therein; or
    (3) If the member fails to appear at a hearing as provided in 
paragraph C.1.1.
    b. The notice shall contain the matter set forth in subsections B.1. 
or C.1. of this part 3, as appropriate.
    c. If the action involves a transfer to the IRR under circumstances 
in which the procedures in this Appendix A are applicable, the member 
will be notified that the character of service upon transfer to the IRR 
also will constitute the character of service upon discharge at the 
completion of the military service obligation unless specified 
conditions established by the Secretary concerned are met.
    2. Transfer to the IRR. Upon transfer to the IRR, the member will be 
notified of the following:
    a. The character of service upon transfer from active duty or the 
Selected Reserve to the IRR, and that the character of service upon 
completion of the military service obligation will be the same unless 
specified conditions established by the Secretary concerned are met.
    b. The date upon which the military service obligation will expire.
    c. The date by which the member must submit evidence of satisfactory 
completion of the specified conditions.
    3. If the member submits evidence of completion of the specified 
conditions but the Military Department proposes to issue a discharge 
other than an Honorable Discharge, the Notification Procedure shall be 
used. An Administrative Board is not required at this

[[Page 182]]

point notwithstanding the member's years of service.
    4. If the member does not submit such information on or before the 
date specified in the notice, no further proceedings are required. The 
character of discharge at the completion of the military service 
obligation shall be the same as the character of service upon transfer 
from the Selected Reserve to the IRR.
    5. The following requirements apply to the notices required by 
subsections E.1. and E.2. of this part 3.
    a. Reasonable effort should be made to furnish copies of the notice 
to the member through personal contact by a representative of the 
command. In such a case, a written acknowledgment of the notice shall be 
obtained.
    b. If the member cannot be contacted or refuses to acknowledge 
receipt of the notice, the notice shall be sent by registered or 
certified mail, return receipt requested (or by an equivalent form of 
notice if such service by U.S. Mail is not available for delivery at an 
address outside the United States) to the most recent address furnished 
by the member as an address for receipt or forwarding of official mail. 
The individual who mails the notification shall prepare a Sworn 
Affidavit of Service by Mail (see 32 CFR part 100 (DoD Directive 
1215.13)), which will be inserted in the member's personnel file 
together with PS Form 3800.
    F. Additional Requirements for Members Beyond Military Control by 
Reason of Unauthorized Absence. 1. Determination of applicability. If 
the general court-martial convening authority or higher authority 
determines that separation is otherwise appropriate under this part, a 
member may be separated without return to military control in one or 
more of the following circumstances:
    a. Absence without authority after receiving notice of initiation of 
separation processing.
    b. When prosecution of a member who is absent without authority 
appears to be barred by the statute of limitations, Article 43, UCMJ.
    c. When a member who is an alien is absent without leave and appears 
to have gone to a foreign country where the United States has no 
authority to apprehend the member under a treaty or other agreement.
    2. Notice. Prior to execution of the separation under paragraphs 
1.b. or 1.c., the member will be notified of the imminent action by 
registered mail or certified mail, return receipt requested (or by an 
equivalent form of Notice if such service by U.S. Mail is not available 
for delivery at an address outside the United States) to the member's 
last known address or the next of kin under regulations prescribed by 
the Military Department concerned. The notice shall contain the matter 
set forth in subsections B.1. or C.1., as appropriate, and shall specify 
that the action has been suspended until a specific date (not less than 
30 days from the date of mailing) in order to give the respondent the 
opportunity to return to military control. If the respondent does not 
return to military control by such date, the separation authority shall 
take appropriate action under subsection B.4. of this part 3.
    3. Members of reserve components. See 10 U.S.C 1163 with respect to 
limitations on separation of members of reserve components.
[47 FR 10174, Mar. 9, 1982, as amended at 52 FR 46997, Dec. 11, 1987]



PART 42--INTERCEPTION OF WIRE AND ORAL COMMUNICATIONS FOR LAW ENFORCEMENT PURPOSES--Table of Contents




Sec.
42.1  Reissuance and purpose.
42.2  Applicability and scope.
42.3  Policy.
42.4  Waivers.
42.5  Responsibilities.
42.6  Definitions.
42.7  Procedures, record administration and reports.
42.8  Information to be included in reports of interceptions and pen 
          register operations.

    Authority: 5 U.S.C. 301.

    Source: 43 FR 39988, Sept. 8, 1978, unless otherwise noted.



Sec. 42.1  Reissuance and purpose.

    This part reissues part 42 to update established policies, 
procedures, and restrictions governing interception of wire and oral 
communications and the use of pen registers and related devices for law 
enforcement purposes, both in the United States and abroad, in 
accordance with 47 U.S.C. 605 and 18 U.S.C. 2510-2520.



Sec. 42.2  Applicability and scope.

    (a) The provisions of this part apply to the Office of the Secretary 
of Defense, the military departments, the Organization of the Joint 
Chiefs of Staff, the defense agencies, and the unified and specified 
commands (hereafter referred to collectively as ``DoD components'').
    (b) This part does not affect status of forces or other specific 
agreements

[[Page 183]]

that may otherwise limit implementation of its provisions in any 
particular geographical area abroad.



Sec. 42.3  Policy.

    (a) The interception of wire and oral communications for law 
enforcement purposes is prohibited unless conducted in accordance with 
this part and applicable law.
    (b) The only DoD components authorized to intercept wire and oral 
communications and conducts pen register operations under this part are 
the Departments of the Army, Navy, and Air Force. Within these 
components, authority to use this technique shall be limited to those 
offices specifically designated in writing by the head of the component.
    (c) Interception of wire and oral communications is a special 
technique which shall not be considered as a substitute for normal 
investigative procedures and shall be authorized only in those 
circumstances where it is demonstrated that the information is necessary 
for a criminal investigation and cannot reasonably be obtained in some 
other, less intrusive manner.
    (d) Nonconsensual interception of wire and oral communications is 
prohibited unless there exists probable cause to believe that:
    (1) In the case of interceptions within the United States, a 
criminal offense listed in 18 U.S.C. 2516(1) has been, is being, or is 
about to be committed;
    (2) In the case of interceptions abroad conducted pursuant to an 
order issued by a military judge under Sec. 42.7(a)(1)(ii)(A), one of 
the following violations of the Uniform Code of Military Justice has 
been, is being, or is about to be committed by a person subject to the 
Uniform code of Military Justice under article 2, 10 U.S.C. 802:
    (i) The offense of murder, kidnapping, gambling, robbery, bribery, 
extortion, espionage, sabotage, treason, fraud against the Government, 
or dealing in narcotic drugs, marihuana, or other dangerous drugs; or
    (ii) Any other offense dangerous to life, limb, or property, and 
punishable by death or confinement for 1 year or more; or
    (iii) Any conspiracy to commit any of the foregoing offenses.
    (3) In the case of other interceptions abroad, one of the following 
offenses has been, is being, or is about to be committed:
    (i) An offense listed in 18 U.S.C. 2516(1); or
    (ii) Fraud against the Government or any other offense dangerous to 
life, limb, or property and punishable under title 18 of the U.S. Code 
by death or confinement for more than 1 year; or
    (iii) Any conspiracy to commit any of the foregoing offenses.
    (e) Consensual interceptions of wire and oral communications shall 
be undertaken only when at least one of the parties to the conversation 
has consented to the interception and when the investigation involves:
    (1) A criminal offense punishable, under the United States Code or 
Uniform Code of Military Justice, by death or confinement for 1 year or 
more; or
    (2) A telephone call involving obscenity, harassment, extortion, 
bribery, bomb threat, or threat of bodily harm that has been made to a 
person authorized to use the telephone of a subscriber-user on an 
installation, building, or portion thereof, under Department of Defense 
jurisdiction or control, and when the subscriber-user has also consented 
to the interception.
    (f) The prohibitions and restrictions of this part apply regardless 
of the official use or dissemination of the intercepted information. Any 
questions as to whether the use of a particular device may involve 
prohibited wire or oral interception shall be submitted with supporting 
facts through channels to the general counsel of the Department of 
Defense for resolution.
    (g) No otherwise privileged wire or oral communication intercepted 
in accordance with this part shall lose its privileged character.



Sec. 42.4  Waivers.

    Waivers of the requirements enunciated in this part will be 
authorized on a case-by-case basis only when directed in writing by the 
Secretary of Defense. Waivers will be authorized only under the most 
limited circumstances and when consistent with applicable law.

[[Page 184]]



Sec. 42.5  Responsibilities.

    (a) The Department of Defense General counsel or a single designee, 
shall:
    (1) Determine whether to approve or deny requests for authorization 
to conduct nonconsensual interceptions under this part (Sec. 42.7(a)(1) 
(i) and (ii)).
    (2) Determine whether to seek Attorney General authorization for 
emergency nonconsensual interceptions (Sec. 42.7(a)(1)(iii)).
    (3) In the absence of the Secretary of the military department 
concerned, or a designee, determine whether to approve or deny requests 
to conduct consensual interceptions (Sec. 42.7(a)(2)(i)).
    (4) Provide overall policy guidance for the implementation of this 
part.
    (b) The Assistant Secretary of Defense (Comptroller) (ASD(C)), or a 
designee, shall:
    (1) In consultation with the DoD General Counsel, act for the 
Secretary of Defense to insure compliance with the provisions of this 
part.
    (2) Receive, process, and transmit to the DoD General Counsel all 
requests from the heads of the DoD components, or their designees, for 
authority to conduct nonconsensual interception of wire and oral 
communications.
    (3) Furnish to the Attorney General those reports required by 
Sec. 42.7(f)(1) and provide a copy of such reports to the DoD General 
Counsel.
    (4) Receive those reports required by Sec. 42.7(f)(1) and provide a 
copy of such reports to the DoD General Counsel.
    (c) The head of each DoD component or a designee shall insure 
compliance with the policies and procedures set forth or referenced in 
this part.
    (d) The secretary of each military department, or a designee, shall:
    (1) Determine whether to approve or deny requests to conduct 
consensual interceptions (Sec. 42.7(a)(2)(i)). This approval authority 
shall not be delegated to an official below the level of assistant 
secretary or assistant to the secretary of the military department.
    (2) Review requests for nonconsensual interception of wire or oral 
communications (Sec. 42.7(a)(1)).
    (3) Designate a control point of contact and so advise the DoD 
General Counsel and the ASD(C) for:
    (i) Interception activities and related applications covered by this 
part.
    (ii) Compilation of reports and forwarding other submissions to the 
ASD(C) as required by the provisions of this part.
    (iii) Maintaining a file of information regarding all interceptions 
of wire and oral communications by any element of the Department.
    (4) Furnish to the ASD(C) the reports required by Sec. 42.7(f)(2).
    (e) The judge advocate general of each military department shall 
assign military judges, certified in accordance with the provisions of 
article 26(b) of the Uniform Code of Military Justice, 10 U.S.C. 826(b):
    (1) To receive applications for intercept authorization orders and 
to determine whether to issue such orders in accordance with 
Sec. 42.7(a)(1)(ii)(A). The authorization of such military judges to 
issue intercept authorization orders shall be limited to interceptions 
occurring abroad and targeted against persons subject to the Uniform 
Code of Military Justice.
    (2) To receive applications to conduct pen register operations and 
to issue orders authorizing such operations in accordance with 
Sec. 42.7(b)(1). The authority of such military judges to issue orders 
authorizing pen register operations shall be limited to operations 
conducted on a military installation and targeted against persons 
subject to the Uniform Code of Military Justice.



Sec. 42.6  Definitions.

    (a) Abroad. Outside the United States. An interception takes place 
abroad when the interception device is located and operated outside the 
United States and the target of the interception is located outside the 
United States.
    (b) Application for court order. A document containing specified 
information prepared for and forwarded to a judge of the U.S. district 
court or the U.S. court of appeals, or a military judge.
    (c) Consensual interception. An interception of a wire or oral 
communication after verbal or written consent for the interception is 
given by one or more of the parties to the communication.
    (d) Court order. An order issued by a judge of a U.S. district court 
or a U.S. court of appeals or by a military judge

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authorizing a wire or oral interception or a pen register operation.
    (e) Electronic, mechanical, or other device. Any device or apparatus 
that can be used to intercept a wire or oral communication other than 
any telephone equipment furnished to the subscriber or user by a 
communications common carrier in the ordinary course of its business and 
used by the subscriber or user in the ordinary course of its business or 
used by an investigative or law enforcement officer in the ordinary 
course of duty (18 U.S.C. 2510(5)).
    (f) Interception. The aural acquisition of the contents of any wire 
or oral communication through the use of any electronic, mechanical, or 
other device (18 U.S.C. 2510(4)). The term ``contents'' includes any 
information concerning the identity of the parties to such communication 
or the existence, substance, purport, or meaning of that communication 
(18 U.S.C. 2510(8)).
    (g) Oral communication. Any oral communication uttered by a person 
exhibiting an expectation that such communication is not subject to 
interception, under circumstances justifying such expectation (18 U.S.C. 
2510(2)).
    (h) Pen register. A device connected to a telephone instrument or 
line that permits the recording of telephone numbers dialed from a 
particular telephone instrument. ``Pen register'' also includes decoder 
devices used to record the numbers dialed from a touch-tone telephone. 
``Pen register'' does not include equipment used to record the numbers 
dialed for and duration of long-distance telephone calls when the 
equipment is used to make such records for an entire telephone system 
and for billing or communications management purposes.
    (i) Telephone tracing. A technique or procedure to determine the 
origin, by telephone number and location, of a telephone call made to a 
known telephone instrument. The terms ``lock-out'' and ``trapping'' may 
also be used to describe this technique.
    (j) United States. For the purposes of this part, the term ``United 
States'' includes the 50 States of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, and any territory or 
possession of the United States.
    (k) United States person. For purposes of this part the term ``U.S. 
person'' means a United States citizen, an alien admitted to the United 
States for permanent residence, a corporation incorporated in the United 
States, an unincorporated association organized in the United States and 
substantially composed of United States citizens or aliens admitted to 
the United States for permanent residence.
    (l) Wire communication. Any communication made in whole or in part 
through the use of facilities for the transmission of communications by 
the aid of wire, cable, or other like connection between the point of 
origin and the point of reception furnished or operated by any person 
engaged as a common carrier in providing or operating such facilities 
for the transmission of interstate or foreign communications. 18 U.S.C. 
2510(1).



Sec. 42.7  Procedures, record administration and reports.

    (a) Procedures governing interception of wire and oral 
communications--(1) Nonconsensual interception--(i) Nonconsensual 
interception in the United States. When an interception is deemed 
necessary for a criminal investigation, the following procedures are 
applicable:
    (A) The requesting component shall prepare and forward through 
channels a ``request for authorization'' to the Assistant Secretary of 
Defense (Comptroller), or an official designated by the ASD(C). This 
application shall be transmitted by expeditious means and protected to 
preclude unauthorized access or any danger to the officials or other 
persons cooperating in the case. Each request for authorization will 
contain the following information:
    (1) The identity of the DoD investigative or law enforcement 
official making the application;
    (2) A complete description of the facts and circumstances relied 
upon by the applicant to justify the intended interception, including:
    (i) The particular offense that has been, is being, or is about to 
be committed;
    (ii) A description of the nature and location of the facilities from 
which or the place where the communication is to be intercepted;

[[Page 186]]

    (iii) A description of the type of communication sought to be 
intercepted with a statement of the relevance of that communication to 
the investigation; and
    (iv) The identity of the person, if known, committing the offense 
and whose communications are to be intercepted;
    (3) A statement as to whether other investigative procedures have 
been tried and failed or why they reasonably appear to be unlikely to 
succeed if tried or to be too dangerous;
    (4) An identification of the type of equipment to be used to make 
the interception;
    (5) A statement of the period of time for which the interception is 
required to be maintained. If the nature of the investigation is such 
that the interception will not terminate automatically when the 
described type of communication has been first obtained, a description 
of the facts establishing probable cause to believe that additional 
communications of the same type will occur thereafter;
    (6) The procedures to minimize the acquisition, retention, and 
dissemination of information unrelated to the purpose of the 
interception;
    (7) A complete statement of the facts concerning each previous 
application for approval of interceptions of wire or oral communications 
known to the applicant and involving any of the same persons, facilities 
or places specified in the application and the action taken thereon; and
    (8) When the application is for an extension of an order, a 
statement setting forth the results thus far obtained from the 
interception, or an explanation of the failure to obtain such results.
    (B) The ASD(C), or an official designated by the ASD(C), will 
recommend to the DoD General Counsel that the request be approved or 
disapproved. Approval or disapproval of all requests for authorization 
will be made in writing by the DoD General Counsel, or a single 
designee.
    (C) If the request is approved by the DoD General Counsel, the 
official making the request will coordinate directly with an attorney 
from the Department of Justice or from a U.S. Attorney's office for 
preparation of documents necessary to obtain a court order in accordance 
with 18 U.S.C. 2518. These documents will be forwarded by the Department 
of Justice attorney to the Attorney General, or to the designated 
Assistant Attorney General, for approval in accordance with 18 U.S.C. 
2516.
    (D) Upon approval by the Attorney General, or the designated 
Assistant Attorney General, formal application for a court order will be 
made by the appropriate attorney from the Department of Justice, 
assisted by the appropriate military lawyer.
    (ii) Nonconsensual interceptions abroad. Unless otherwise authorized 
by direction of the President or the Attorney General, the following 
procedures are applicable to interceptions for law enforement purposes 
when the interception takes place abroad and when a DoD component, or 
members thereof, conduct or participate in the interception; or when the 
interception takes place abroad, is targeted against a U.S. person, and 
is conducted pursuant to a request by a DoD component:
    (A) When the target of the interception is a person subject to the 
Uniform Code of Military Justice under Article 2, U.S.C. 802.
    (1) The request for authorization shall include the information 
required by paragraph (a)(1)(i)(A) of this section, and shall be 
forwarded through channels to the Assistant Secretary of Defense 
(Comptroller), or the ASD(C)'s, designee. The ASD(C), or a designee, 
shall recommend to the DoD General Counsel that the request be approved 
or disapproved. Approval or disapproval of all Requests for 
Authorization shall be made in writing by the DoD General Counsel, or a 
single designee.
    (2) Upon written approval of the DoD General Counsel, the DoD 
investigative or law enforcement officer shall prepare a formal 
application for a court order in accordance with the procedures of 18 
U.S.C. 2518(1). The application shall be submitted to a military judge 
assigned to consider such applications pursuant to Sec. 42.5(e).
    (3) Only military judges assigned by the Judge Advocate General of 
their service to receive applications for

[[Page 187]]

intercept authorization orders shall have the authority to issue such 
orders. The authority of military judges to issue intercept 
authorization orders shall be limited to interceptions conducted abroad 
and targeted against persons subject to the Uniform Code of Military 
Justice.
    (i) A military judge shall be ineligible to issue an order 
authorizing an interception if, at the time of application, the judge 
(A) is involved in any investigation under Article 32 of the Uniform 
Code of Military Justice, 10 U.S.C. 832; or (B) is engaged in any other 
investigative or prosecutorial function in connection with any case; or 
if the judge has previously been involved in any investigative or 
prosecutorial activities in connection with the case for which the 
intercept authorization order is sought.
    (ii) No military judge who has issued an order authorizing 
interceptions may act as the accuser, be a witness for the prosecution, 
or participate in any investigative or prosecutorial activities in the 
case for which the order was issued. A military judge who has issued an 
order authorizing interceptions is not disqualified from presiding over 
the trial in the same case.
    (iii) A military judge otherwise qualified under 
Sec. 42.7(a)(1)(ii)(C)(i) and (ii) enclosure shall not be disqualified 
from issuing orders authorizing interceptions because the judge is a 
member for a service different from that of the target of the 
interception or from that of the investigative or law enforcement 
officers applying for the order.
    (4) The military judge may enter an ex parte order, as requested or 
as modified, authorizing or approving an interception of wire or oral 
communications if the judge determines on the basis of the facts 
submitted by the applicant that:
    (i) There is probable cause to believe that a person subject to the 
Uniform Code of Military Justice is committing, has committed, or is 
about to commit a particular offense enumerated in Sec. 42.3(d)(2);
    (ii) There is probable cause to believe that particular 
communications concerning that offense will be obtained through such 
interception;
    (iii) Normal investigative procedures have been tried and have 
failed or reasonably appear to be unlikely to succeed if tried or to be 
too dangerous;
    (iv) There is probable cause to believe that the facilities from 
which, or the place where, the wire or oral communications are to be 
intercepted are being used, or are about to be used, in connection with 
the commission of such offense, or are leased to, listed in the name of, 
or commonly used by such person; and
    (v) The interception will not violate the relevant status of forces 
agreement or the applicable domestic law of the host nation.
    (5) Each order authorizing an interception shall specify:
    (i) The identity of the person, if known, whose communications are 
to be intercepted;
    (ii) The nature and location of the communications facilities as to 
which, or the place where, authority to intercept is granted;
    (iii) A particular description of the type of communication sought 
to be intercepted, and a statement of the particular offense to which it 
relates;
    (iv) The identity of the agency authorized to intercept the 
communications, and of the person authorizing the application; and
    (v) The period of time during which such interception is authorized, 
including a statement as to whether the interception shall terminate 
automatically when the described communication has been first obtained.
    (6) Every order and extension thereof shall contain a provision that 
the authorization to intercept shall be executed as soon as practicable, 
shall be conducted in such a way as to minimize the interception of 
communications not otherwise subject to interception under this part, 
and shall be terminated upon attainment of the authorized objective.
    (7) No order entered by a military judge may authorize an 
interception for any period longer than is necessary to achieve the 
objective of the authorization, nor in any event longer than 60 days. 
Extensions of an order may be granted, but only upon application for an 
extension made in accordance with the procedures of 18 U.S.C. 2518(1), 
and

[[Page 188]]

after the military judge makes the findings required by paragraph 
(a)(1)(ii)(A)(4) of this section. The period of extension shall be no 
longer than is necessary to achieve the purpose for which it was granted 
and in no event for longer than 60 days.
    (8) The contents of communications intercepted pursuant to an order 
issued by a military judge shall, if possible, be recorded on tape or 
wire or other comparable device. The recording of the contents of such 
communications shall be done in such a way as will protect the recording 
from editing or other alterations. Custody of the recording shall be 
wherever required by the regulations promulgated under paragraph (e)(1) 
of this section and it shall not be destroyed except pursuant to 
paragraph (e)(4) of this section.
    (9) The contents of a communication intercepted abroad, or evidence 
derived therefrom, shall be inadmissible in any court-martial 
proceeding, in any proceeding under Article 15 of the Uniform Code of 
Military Justice, 10 U.S.C. 815, or in any other proceeding if the:
    (i) Communication was intercepted in violation of this part or 
applicable law;
    (ii) Order of authorization under which it was intercepted is 
insufficient on its face; or
    (iii) Interception was not made in conformity with the order of 
authorization.
    (B) When the target of an interception conducted abroad is a person 
who is not subject to the Uniform Code of Military Justice:
    (1) The request for authorization shall be prepared and forwarded 
for approval in accordance with the procedures in paragraph (a)(1)(i) 
(A) and (B) of this section.
    (2) The DoD General Counsel shall determine whether to approve the 
request and what further approval is required by law to conduct the 
interception.
    (iii) Emergency nonconsensual interceptions in the United States and 
abroad. If, in the judgment of the head of the DoD component concerned, 
or a designee, the emergency need for a nonconsensual interception 
precludes obtaining the advance written approval and court order 
required by paragraph (a)(1) (i) and (ii) of this section, the component 
head or designee shall notify the DoD General Counsel who shall 
determine whether to seek the authorization of the Attorney General for 
an emergency nonconsensual interception in accordance with the 
procedures of 18 U.S.C. 2518(7).
    (iv) Time limits. Nonconsensual interceptions within the United 
States may be approved for a period not to exceed 30 days. Nonconsensual 
interceptions outside the United States may be approved for a period not 
to exceed 60 days. Renewal requests for specified periods of not more 
than 30 days each (60 days for interceptions outside the United States), 
may be submitted to the approving authority for consideration. The 
interception in all instances shall be terminated as soon as the desired 
information is obtained, or when the interception proves to be 
nonproductive.
    (2) Consensual interceptions. (i) The following procedures are 
applicable to all consensual interceptions of oral or wire 
communications:
    (A) When one of the parties to the conversation consents to an 
intended interception of a communication, the DoD investigative or law 
enforcement official shall prepare a request containing the following 
information:
    (1) A description of the facts and circumstances requiring the 
intended interception, the means by which it would be conducted, the 
place in which it would be conducted, and its expected duration;
    (2) The names of all the persons whose conversations are expected to 
be intercepted and their roles in the crime being investigated. When the 
name of the nonconsenting party or parties is not known at the time the 
request is made, the official making the request shall supply such 
information within 30 days after termination of the interception. If 
such information is not known at the end of this period, it shall be 
supplied whenever it is later discovered;
    (3) A statement that in the judgment of the person making the 
request the interception is warranted in the interest of effective law 
enforcement.
    (B) An application for a court interception order is not necessary 
in this

[[Page 189]]

situation. Written approval of the request shall be made by the 
Secretary of a military department, or a designee, or, in their absence, 
the DoD General Counsel. This approval authority shall not be delegated 
to an official below the level of Assistant Secretary or Assistant to 
the Secretary of a military department.
    (C) The Secretaries of the military departments shall designate an 
official to act upon telephonic requests when emergency needs preclude 
advance written approval. A written record of such requests shall be 
made.
    (ii) The following restrictions are applicable to all consensual 
interceptions of oral or wire communications:
    (A) Within the United States, approval shall be granted for a period 
of no more than 30 days. Abroad, approval may be granted for 60 days. 
Renewal requests for specified periods of not more than 30 days each (60 
days for interception outside the United States) may be submitted to the 
approving authority for consideration. The interception in all instances 
shall be terminated as soon as the desired information is obtained, or 
when the interception proves to be nonproductive.
    (B) The authorization for consensual interception of communications 
shall define clearly the manner in which the interception is to be 
accomplished. A ``consensual interception'' shall not involve the 
installation of equipment in violation of the constitutionally protected 
rights of any nonconsenting person whose communications will be 
intercepted.
    (b) Procedures governing the use of pen registers and similar 
devices or techniques. The procedures of this section apply to the use 
of pen registers, touch-tone telephone decoders, and similar devices. 
Unless otherwise authorized by direction of the President or the 
Attorney General, pen register and similar operations shall be conducted 
only upon probable cause and pursuant to a court order.
    (1) Operations conducted on a military installation and targeted 
against persons subject to the Uniform Code of Military Justice. Except 
as provided in Sec. 42.7(b)(3), when a pen register operation is 
conducted on a military installation, in the United States or abroad, 
and when the target of the operation is a person subject to the Uniform 
Code of Military Justice, the following procedures apply:
    (i) The application for a court order authorizing the operation 
shall be made in writing upon oath or affirmation and shall be submitted 
to a military judge assigned by the Judge Advocates General, pursuant to 
paragraph (f)(5) of this section, to receive such applications. An 
application shall include the following information:
    (A) The identity of the DoD investigative or law enforcement officer 
making the application;
    (B) A complete statement of the facts and circumstances relied upon 
by the application to justify the applicant's belief that there exists 
probable cause to believe that the operation will produce evidence of a 
crime, including a description of the particular offense involved, a 
description of the nature and location of the facilities from which the 
intercepted information originates, and the identity of the person, if 
known, who has committed, is about to commit, or is committing the 
offense and who is the target of the operation;
    (C) A statement of the period of time for which the operation is 
required to be maintained.
    (ii) Subject to the limitations of paragraph (a)(1)(ii)(C) (i), 
(ii), and (iii) of this section, a military judge assigned to receive 
applications for orders authorizing operations covered by this 
subsection may enter an order authorizing the operation upon finding 
that the target of the operation is a person subject to the Uniform Code 
of Military Justice, that the operation will be conducted on a military 
installation, and that there exists probable cause to believe that the 
operation will produce evidence of a crime. Each order shall specify 
the:
    (A) Identity of the person, if known, who is the target of the 
operation;
    (B) Location of the facilities from which the intercepted 
information originates and of the facilities on which the operation will 
take place;
    (C) Period of time during which such operation is authorized.

[[Page 190]]

    (iii) When the application is for an operation conducted abroad, the 
military judge may not authorize the operation if it would violate the 
relevant Status of Forces Agreement or the applicable domestic law of 
the host nation.
    (2) Other pen register operations. (i) When the target of a pen 
register operation abroad is a person who is not subject to the Uniform 
Code of Military Justice:
    (A) The application for authority to conduct a pen register 
operation shall include the information in paragraph (b)(1)(i) of this 
section and shall be forwarded to the DoD General Counsel.
    (B) The DoD General Counsel shall determine whether to approve the 
request and what further approval is required by law to conduct the pen 
register operation.
    (ii) Except as provided in paragraph (b)(3) of this section, all 
other pen register and similar operations in the United States shall be 
conducted pursuant to a search warrant (or other judicial order 
authorizing the operation) issued by a judge of competent jurisdiction.
    (3) Pen register operations which include nonconsensual 
interceptions of wire communications. When an operation under this 
section is to be conducted in conjunction with a nonconsensual 
interception of a wire communication under Sec. 42.7(a)(1), procedures 
of Sec. 42.7(a)(1) shall apply to the entire operation.
    (c) Procedures governing telephone tracing. When prior consent of 
one or more parties to a telephone tracing operation has been obtained, 
the use of telephone tracing equipment and techniques shall be 
authorized only after coordination with appropriate judge advocate 
personnel or other component legal counsel. The local military facility 
commander may approve consensual telephone tracing operations on 
military facilities. For use outside military jurisdiction, the local 
military commanders, in coordination with judge advocate personnel, 
shall coordinate with local civilian or host country authorities when 
appropriate. In all cases, use of this technique must comply with the 
provisions of DoD directive 5200.27.1
---------------------------------------------------------------------------

    1 Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, 5801 Tabor Ave., Philadelphia, Pa. 19120, 
attention code 301.
---------------------------------------------------------------------------

    (d) Interception equipment--(1) Control of interception equipment. 
(i) DoD Components other than the military departments are not 
authorized to procure or maintain equipment primarily useful for the 
interception of wire and oral communications described in this part. The 
heads of military departments shall establish controls to insure that 
only the minimum quantity of interception equipment required to 
accomplish assigned missions is procured and retained in inventories.
    (ii) Interception equipment shall be safeguarded to prevent 
unauthorized access or use, with appropriate inventory records to 
account for all equipment at all times. Storage shall be centralized to 
the maximum extent possible consistent with operational requirements. 
When equipment is withdrawn from storage a record shall be made as to 
the times of withdrawal and of its return to storage. Equipment should 
be returned to storage when not in actual use, except to the extent that 
returning the equipment would interfere with its proper utilization. The 
individual to whom the equipment is assigned shall account fully, in a 
written report, for the use made of the equipment during the time it was 
removed from storage. Copies of the completed inventories of equipment, 
the times of withdrawal and return and the written reports of the agents 
specifying the uses made of the equipment shall be retained for at least 
10 years.
    (2) Disposal of interception equipment. (i) Federal law prohibits 
the sale or possession of any device by any person who knows or has 
reason to know that ``the design of such device renders it primarily 
useful for the purpose of the surreptitious interception of wire or oral 
communications * * *.'' Accordingly, disposal outside the Government of 
such interception equipment is prohibited.
    (ii) If there is any question as to what purpose an item of 
equipment is primarily useful for, then the officials

[[Page 191]]

involved should, in the exercise of due caution, prohibit its sale 
pending referral to the DoD General Counsel for a determination as to 
the proper classification of such devices under the law.
    (e) Records administration--(1) General. All recordings and records 
of information obtained through interception activities conducted under 
the provisions of this part shall be safeguarded to preclude 
unauthorized access, theft, or use. Both the interest of the Government 
and the rights of private individuals involved shall be considered in 
the development of safeguarding procedures. The Secretaries of the 
military departments shall promulgate regulations specifying storage and 
access requirements for applications, orders, recordings, and other 
records of information obtained through interception activities. These 
regulations shall include provisions for storage and access while the 
case is active and after the case has become inactive and the records 
have been transferred to a centralized facility. Copies of all issuances 
and revisions shall be provided to the DoD General Counsel and the 
ASD(C) as promulgated.
    (2) Indexing--(i) Interceptions. The records of consensual and 
nonconsensual interceptions shall be prepared and maintained to provide 
for centralized, readily accessible records or indices that include the 
following:
    (A) Names, citizenship, and other available identifying data for 
each reasonably identifiable person intercepted (intentionally or 
otherwise), whether a case subject or not. If available, the social 
security account number and the date and place of birth of the 
individuals intercepted and identified;
    (B) The telephone numbers of radio telephone call signs involved in 
the interception;
    (C) The case number or other identifier for the interception;
    (D) The address of the location of the interception;
    (E) The inclusive dates of the interception.
    (ii) Denied interception applications. Records of all applications 
submitted to and disapproved by a Federal or military judge for 
authorization to conduct a nonconsensual interception of a wire or oral 
communication shall be prepared and maintained in a separate, 
centralized index which shall include the following information:
    (A) Names and other available identifying data for each reasonably 
identifiable target of the interception applied for;
    (B) The telephone numbers or radio telephone call signs involved in 
the application;
    (C) The address of the location of the interception applied for;
    (D) The case number or other identifier for the application; and
    (E) A statement of the other facts concerning the application and 
the reason that the application was refused.
    (3) Dissemination controls. (i) The index and records maintained 
pursuant to paragraph (e)(2)(ii) of this section, shall be used only as 
required to satisfy the requirements of 18 U.S.C. 2518(1)(e), paragraph 
(a)(1)(i)(A)(7), (a)(1)(ii) (A) and (B) (statement of prior 
applications) and (f) (1) and (2) of this section.
    (ii) In all cases, access to information obtained by interception 
activities conducted under the provisions of this part shall be 
restricted to those individuals having a defined need-to-know clearly 
related to the performance of their duties.
    (iii) The information may be disseminated outside the Department of 
Defense only when:
    (A) Required for the purposes described in 18 U.S.C. 2517;
    (B) Required by law (including the Privacy Act of 1974, as amended, 
and the Freedom of Information Act of 1967, as amended, or order of a 
Federal court;
    (C) Requested by a committee of the Congress and approved for 
release by the DoD General Counsel; or
    (D) Required by the provisions of Status of Forces or other 
international agreements.
    (iv) Secretaries of the military departments shall promulgate 
regulations, policies and procedural controls and designate responsible 
officials for both internal and external dissemination of the 
information described above. Procedures shall include sufficient records 
reflecting dissemination of this information. Copies of all

[[Page 192]]

issuances and revisions for these purposes shall be provided the DoD 
General Counsel and the ASD(C) as promulgated.
    (4) Retention and disposition of records. Records and recordings of 
interception shall be retained for 10 years after termination of the 
interception and then disposed of in accordance with component records 
retirement procedures. If the interception was conducted in the United 
States under the provisions of 18 U.S.C. 2516, the records may be 
destroyed only pursuant to order of the court involved.
    (f) Reports--(1) By the Assistant Secretary of Defense 
(Comptroller). The ASD(C), or a designee, shall submit the following 
reports to the Attorney General:
    (i) Quarterly. For the quarters ending in March, June, September, 
and December, to be submitted by the end of each following month, a 
report of all consensual interceptions of oral communications by DoD 
components in the United States and abroad. This report shall specify 
for each interception the means by which the interception was conducted, 
the place in which it was conducted, its duration, and the use made of 
the information acquired. This report shall also contain the names and 
positions of persons authorized to approve consensual interceptions of 
oral communications, including those persons authorized to approve 
emergency, telephonic requests.
    (ii) Annually. (A) By January 31, a report of all nonconsensual 
interceptions of wire or oral communications conducted for investigative 
or law enforcement purposes abroad by DoD components during the 
preceding year and of all unsuccessful applications for orders to 
conduct such interceptions during the preceding year. This report shall 
contain the information required in 18 U.S.C. 2519(2).
    (B) By July 31, an inventory of all DoD electronic or mechanical 
equipment primarily useful for interception of wire or oral 
communications.
    (2) By the Secretaries of the military departments. The Secretaries 
of the military departments, or their designees, shall submit the 
following reports to the ASD(C):
    (i) Quarterly. For the quarters ending in March, June, September, 
and December, to be received by the 15th day of each following month, a 
report of all interceptions of wire and oral communications, pen 
register operations, and unsuccessful applications for nonconsensual 
interceptions conducted by the military departments in the United States 
and abroad. This report shall include the information listed in 
Sec. 42.8.
    (ii) Annually. By July 15, a complete inventory of all devices in 
the DoD component that are primarily useful for interception of wire or 
oral communications or for operations covered by paragraph (b) of this 
section. This report shall include a statement that the amount of 
equipment is being maintained at the lowest level consistent with 
operational requirements.



Sec. 42.8  Information to be included in reports of interceptions and pen register operations.

    (a) Consensual interceptions. (1) Identity of DoD component making 
this report.
    (2) Indicate whether the report is a wire or oral interception 
operation and whether the interception included the use of a pen 
register. (If more than one operation is authorized, a separate entry 
should be made for each.)
    (3) Purpose or objective of operation. Specify offense being 
investigated and included a brief synopsis of the case.
    (4) Investigative case number or identifier for the operation.
    (5) Location of the operation.
    (6) Type of equipment used and method of installation.
    (7) Identity of the performing organizational unit. (Indicate if the 
interception was conducted for a DoD component other than the component 
making the report or for a non-DoD activity.)
    (8) Identity of DoD investigative or law enforcement officer who 
requested or applied for the interception.
    (9) Approval authority and date of approval.
    (10) Length and dates for which operation was approved.
    (11) Actual date operation was initiated, and date terminated.
    (12) If operation was extended, state name of authority approving 
extension and dates to which extended.

[[Page 193]]

    (13) State where tapes, transcripts, and notes are stored.
    (14) Evaluation of results of operations, including the use made of 
the information in subsequent investigation or prosecution.
    (15) The names and positions of persons authorized to approve 
consensual interceptions, including those persons authorized to approve 
emergency, telephonic requests.
    (16) Indicate whether the interception took place in the United 
States or abroad.
    (b) Nonconsensual interceptions in the United States. In addition to 
items in Sec. 42.8(a) (1)-(14), include the following:
    (1) Identity of court and judge who issued the intercept 
authorization order and date of order.
    (2) Nature and frequency of incriminating communications intercepted 
(specify dates and approximate duration of each communication).
    (3) Nature and frequency of other communications intercepted.
    (4) Number of persons whose communications were intercepted. 
Indicate number of U.S. persons known to have been intercepted and 
whether such persons were targets or incidentals.
    (c) Nonconsensual interceptions abroad. In addition to items in 
paragraphs (a) (1)-(14) and (b) (1)-(4) of this section, include the 
following:
    (1) Number of persons located in the United States whose 
communications were intercepted.
    (2) In the report for the last quarter of each calendar year, 
include:
    (i) The number of arrests and trials resulting from each 
interception conducted during the year. Indicate the offense for each 
interception.
    (ii) The number of convictions resulting from the interceptions 
conducted during the year and the offenses for which convictions were 
obtained.
    (d) Pen register operations. Pen register operations conducted in 
conjunction with nonconsensual interceptions should be included in 
Sec. 42.8 (a) and (b). For all other pen register operations include 
items (1)-(15) from Sec. 42.8(a), items (1)-(4) from Sec. 42.8(b), and 
indicate whether the operation was conducted in the United States or 
abroad.
    (e) Unsuccessful applications for nonconsensual interception 
authorization orders. (1) Identity of applying organizational unit. 
(Indicate if the application was on behalf of a DoD component other than 
the component making the report or on behalf of a non-DoD activity.)
    (2) Investigative case number or identifier for the application.
    (3) Identity of applying DoD investigative or law enforcement 
officer.
    (4) Approval authority and date of approval of DoD request.
    (5) Identity of judge who denied the application and date of denial.
    (6) Offense specified in the application.
    (7) Whether the application was for a wire or oral interception 
order, and whether the application was for an interception in the United 
States or abroad.
    (8) Purpose or object of the interception applied for. Include a 
brief synopsis of the case.
    (9) If the application was for an extension, indicate the dates, 
duration, and results of the previous interception.
    (10) Specific location of the interception applied for.
    (11) Number of U.S. persons named as targets in the application.
    (12) Reason why the application was denied.



PART 43--PERSONAL COMMERCIAL SOLICITATION ON DoD INSTALLATIONS--Table of Contents




Sec.
43.1  Reissuance and purpose.
43.2  Applicability and scope.
43.3  Definitions.
43.4  Policy.
43.5  Responsibilities.
43.6  Procedures.

Appendix A to Part 43--Life Insurance Products and Securities
Appendix B to Part 43--The Overseas Life Insurance Accreditation Program

    Authority: 5 U.S.C. 301.

    Source: 51 FR 7552, Mar. 5, 1986, unless otherwise noted.



Sec. 43.1  Reissuance and purpose.

    This part:
    (a) Consolidates into a single document parts 43 and 276 of this 
title and update DoD policies and procedures

[[Page 194]]

governing personal commercial solicitation and insurance sales on DoD 
installations.
    (b) Continues the established annual DoD accreditation requirements 
for life insurance companies operating in overseas areas where neither 
Federal nor State consumer protection regulations apply.



Sec. 43.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense 
(OSD), the Military Departments, the Organization of the Joint Chiefs of 
Staff (OJCS), the Unified Commands, and the Defense Agencies (hereafter 
referred to collectively as ``DoD Components''). The term ``Military 
Services,'' as used herein, refers to the Army, Navy, Air Force, Marine 
Corps, and Coast Guard.
    (b) The provisions of this part do not apply to services furnished 
by commercial companies, such as deliveries of milk, laundry, and 
related residence services when such services are authorized by the DoD 
installation commander.
    (c) Nothing in this part should be construed to preclude private, 
non-profit, tax-exempt organizations composed of active and retired 
members of the Military Services from holding membership meetings which 
do not involve commercial solicitation on DoD installations. Attendance 
at these meetings shall be voluntary and the time and place of such 
meetings are subject to the discretion of the installation commander or 
his or her designee.
[51 FR 7552, Mar. 5, 1986, as amended at 52 FR 25008, July 2, 1987]



Sec. 43.3  Definitions.

    Agent. An individual who receives remuneration as a salesperson or 
whose remuneration is dependent on volume of sales of a product or 
products.
    Association. Any organization, whether or not the word 
``Association'' appears in its title, composed of and serving 
exclusively members of the Military Services on active duty, in a 
Reserve status, in a retired status, and their dependents, which 
officers its members life insurance coverage, either as part of the 
membership dues, or as a separately purchased plan made available 
through an insurance carrier or the association as a self-insurer, or a 
combination of both.
    DoD installation. Any Federally owned, leased, or operated base, 
reservation, post, camp, building, or other facility to which DoD 
personnel are assigned for duty, including barracks, transient housing, 
and family quarters.
    DoD personnel. All active duty officers (commissioned and warrant) 
and enlisted members of the Military Services and all civilian 
employees, including nonappropriated fund employees and special 
Government employees of all offices, agencies, and departments carrying 
on functions on a Defense installation.
    General agent. A person who has a legal contract to represent a 
company solely and exclusively.
    Insurance carrier. An insurance company issuing insurance through an 
association or reinsuring or coinsuring such insurance.
    Insurance product. A policy, annuity, or certificate of insurance 
issued by an insurer or evidence of insurance coverage issued by a self-
insured association.
    Insurer. Any company or association engaged in the business of 
selling insurance policies to DoD personnel.
    Normal home enterprises. Sales or services which are customarily 
conducted in a domestic setting and do not compete with an 
installation's officially sanctioned commerce.
    Securities. Mutual funds, stocks, bonds, or any product registered 
with the Securities and Exchange Commission except for any insurance or 
annuity product issued by a corporation subject to supervision by State 
insurance authorities.
    Solicitation. The conduct of any private business, including the 
offering and sale of insurance on a military installation. Solicitation 
on installations is a privilege as distinguished from a right, and its 
control is a responsibility vested in the DoD installation commander.



Sec. 43.4  Policy.

    It is the policy of the Department of Defense to safeguard and 
promote the welfare of DoD personnel as consumers by setting forth a 
uniform approach to

[[Page 195]]

the conduct of all personal commercial solicitation and sales to them by 
dealers and their agents.



Sec. 43.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Force Management and 
Personnel) (ASD(FM&P)) shall be responsible for developing policies and 
procedures governing personal commercial solicitation activities 
conducted on DoD installations.
    (b) The Heads of DoD Components, or their designees, shall assure 
implementation of this Directive and compliance with its provisions.



Sec. 43.6  Procedures.

    (a) General. (1) No person has authority to enter upon a DoD 
installation and transact personal commercial solicitation as a matter 
of rights. Personal commercial solicitation will be permitted only if 
the following requirements are met:
    (i) The solicitor is duly licensed under applicable Federal, State, 
or municipal laws and has complied with installation regulations in 
accordance with paragraph (c) of this section.
    (ii) Personal commercial solicitation is permitted by the local 
installation commander.
    (iii) A specific appointment has been made with the individual 
concerned and conducted in family quarters or in other areas designated 
by the installation commander.
    (2) Those seeking to transact personal commercial solicitation on 
overseas installations shall be required to observe, in addition to the 
above, the applicable laws of the host country and, upon demand, present 
documentary evidence to the installation commander, or designee, that 
the company they represent, and its agents, meet the licensing 
requirements of the host country.
    (3) Organizations involved in sales are permitted to display 
literature on DoD installations in locations selected by the commander.
    (b) Life insurance products and securities. (1) Life insurance 
products and securities offered and sold to DoD personnel must meet the 
prerequisites described in Appendix A.
    (2) Insurers and their agents are authorized to solicit on DoD 
installations provided they are licensed under the insurance laws of the 
State in which the installation is located. In overseas areas, DoD 
Components shall limit this authorization to those insurers accredited 
under the provisions of Appendix B.
    (3) The conduct of all insurance business on DoD installations shall 
be by specific appointment. When establishing the appointment, insurance 
agents must identify themselves to the prospective purchaser as an agent 
for a specific company.
    (4) Installation commanders shall designate areas where interviews 
by appointment may be conducted. Invitations to conduct interviews shall 
be extended to all agents on an equitable basis. Where space and other 
considerations limit the number of agents using the interviewing area, 
the installation commander may develop and publish local policy 
consistent with this concept.
    (5) Installation commanders shall make disinterested third-party 
counseling available to DoD personnel desiring counseling.
    (6) In addition to the solicitation prohibitions contained in 
paragraph (d) of this section, DoD Components shall prohibit:
    (i) DoD personnel from representing any insurer, or dealing directly 
or indirectly with any insurer or any recognized representative of any 
insurer on the installation, as an agent or in any official or business 
capacity with or without compensation.
    (ii) The use of an agent as a participant in any Military Services-
sponsored insurance education or orientation program.
    (iii) The designation of any agent or the use by any agent of titles 
such as ``Battalion Insurance Counselor,'' ``Unit Insurance Advisor,'' 
``Servicemen's Group Life Insurance Conversion Consultant,'' etc.
    (iv) The assignment of desk space for interviews for other than a 
specific prearranged appointment. During such appointment, the agent 
shall not be permitted to display desk or other signs announcing his or 
her name or company affiliation.

[[Page 196]]

    (v) The use of the ``Daily Bulletin'' or any other notice, official 
or unofficial, announcing the presence of an agent and his or her 
availability.
    (c) Supervision of on-base commercial activities. (1) All pertinent 
installation regulations shall be posted in a place easily accessible to 
those conducting personal commercial solicitation activities on the 
installation.
    (2) When practicable, as determined by the installation commander, a 
copy of the applicable installation regulations shall be given to those 
conducting on-base commercial activities with the warning that any 
infractions of the regulations will result in the withdrawal of 
solicitation privileges.
    (d) Prohibited practices. The following commercial solicitation 
practices shall be prohibited on all DoD installations:
    (1) Solicitation of recruits, trainees, and transient personnel in a 
``mass'' or ``captive'' audience.
    (2) Making appointments with or soliciting military personnel who 
are in an ``on-duty'' status.
    (3) Soliciting without appointment in areas utilized for the housing 
or processing of transient personnel, in barracks areas used as 
quarters, in unit areas, in family quarters areas, and in areas provided 
by installation commanders for interviews by appointment.
    (4) Use of official identification cards by retired or reserve 
members of the Military Services to gain access to DoD installations for 
the purpose of soliciting.
    (5) Procuring, or attempting to procure, or supplying roster 
listings of DoD personnel for purposes of commercial solicitation, 
except for releases granted in accordance with DoD Directive 5400.7.
    (6) Offering unfair, improper, and deceptive inducements to purchase 
or trade.
    (7) Using rebates to facilitate transactions or to eliminate 
competition.
    (8) Using manipulative, deceptive, or fraudulent devices, schemes, 
or artifices, including misleading advertising and sales literature.
    (9) Using oral or written representations to suggest or give the 
appearance that the Department of Defense sponsors or endorses any 
particular company, its agents, or the goods, services, and commodities 
it sells.
    (10) Full-time DoD personnel making personal commercial 
solicitations or sales to DoD personnel who are junior in rank or grade 
as provided in DoD Directive 5500.7 \1\.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the US Naval 
Publications and Forms Center 5801 Tabor Avenue, ATTN: Code 301, 
Philadelphia PA 19120.
---------------------------------------------------------------------------

    (11) Entering into any unauthorized or restricted area.
    (12) Using any portion of installation facilities, including 
quarters, as a showroom or store for the sale of goods or services, 
except as specifically authorized by DoD Directives 1330.9 \2\ and 
1330.17 \3\ and DoD Instructions 1330.18 \4\ and 1000.15 \5\. This is 
not intended to preclude normal home enterprises, providing applicable 
State and local laws are complied with.
---------------------------------------------------------------------------

    \2--5\ See footnote 1 to paragraph (d)(10) of this section.
---------------------------------------------------------------------------

    (13) Soliciting door to door.
    (14) Advertising addresses or telephone numbers of commercial sales 
activities conducted on the installation, except for authorized 
activities conducted by members of military families residing in family 
housing.
    (e) Denial and revocation of on-base solicitation. (1) The 
installation commander shall deny or revoke permission to a company and 
its agents to conduct commercial activities on the base if such action 
is in the best interests of the command. The grounds for taking this 
action shall include, but not be limited to, the following:
    (i) Failure to meet the licensing and other regulatory requirements 
prescribed in paragraphs (a) and (b) of this section.
    (ii) Commission of any of the practices prohibited in paragraphs 
(b)(6) and (d) of this section.
    (iii) Substantiated complaints or adverse reports regarding quality 
of goods, services, and commodities and the manner in which they are 
offered for sale.
    (iv) Knowing and willful violations of Pub. L. 90-321.
    (v) Personal misconduct by a company's agent or representative while 
on the installation.

[[Page 197]]

    (vi) The possession of or any attempt to obtain supplies of 
allotment forms used by the Military Departments, or possession or use 
of facsimiles thereof.
    (vii) Failure to incorporate and abide by the Standards of Fairness 
policies contained in DoD Directive 1344.9.\6\
---------------------------------------------------------------------------

    \6\ See footnote 1 to paragraph (d)(10) of this section.
---------------------------------------------------------------------------

    (2) In withdrawing solicitation privileges, the commander shall 
determine whether to limit it to the agent alone or extend it to the 
company the agent represents. This decision shall be communicated to the 
agent and to the company the agent represents and shall be based on the 
circumstances of the particular case, including, among others, the 
nature of the violations, frequency of violations, the extent to which 
other agents of the company have engaged in such practices, and any 
other matters tending to show the company's culpability.
    (i) Upon withdrawing solicitation privileges, the commander shall 
promptly inform the agent and the company the agent represents orally or 
in writing.
    (ii) If the grounds for the action involve the eligibility of the 
agent or company to hold a State license or to meet other regulatory 
requirements, the appropriate authorities will be notified.
    (iii) The commander shall afford the individual or company an 
opportunity to show cause why the action should not be taken. To ``show 
cause'' means an opportunity must be given for the grieved party to 
present facts on his or her behalf on an informal basis for the 
consideration of the installation commander.
    (iv) If warranted, the commander shall recommend to the Military 
Department concerned that the action taken be extended to other DoD 
installations. If so approved, and when appropriate, the Assistant 
Secretary of Defense (Force Management and Personnel) (ASD(FM&P)), 
following consultation with the Military Department concerned, shall 
order the action extended to other Military Departments.
    (v) All denials or withdrawals of privileges will be for a set 
period of time, at the end of which the individual may reapply for 
permission to solicit through the Military Department originally 
imposing the restriction. Denial or withdrawal of soliciting privileges 
may or may not be continued, as warranted.
    (vi) When such denials or withdrawals are lifted, the Office of the 
ASD(FM&P) shall be notified for parallel action if the same denial or 
withdrawal has been extended to other Military Departments.
    (vii) The commanding officer may, if circumstances dictate, make 
immediate suspensions of solicitation privileges for a period of 30 days 
while an investigation is conducted. Exceptions to this amount of time 
must be approved by the Military Department concerned.
    (3) Upon receipt of the information outlined above, the Secretaries 
of the Military Departments may direct the Armed Forces Disciplinary 
Control Boards in all geographical areas in which the grounds for action 
have occurred to consider the charges and take appropriate action.
    (f) Advertising policies. (1) The Department of Defense expects 
voluntary observance of the highest business ethics both by commercial 
enterprises soliciting DoD personnel through advertisements in 
unofficial military publications, and by the publishers of those 
publications in describing goods, services, and commodities, and the 
terms of the sale (including guarantees, warranties, and the like).
    (2) The advertising of credit terms shall conform to the provisions 
of Pub. L. 90-321 as implemented by Regulation Z.
    (g) Educational programs. (1) The Military Departments shall develop 
and disseminate information and education programs for members of the 
Military Services on how to conduct their personal commercial affairs, 
including such subjects as the Truth-in-Lending Act, insurance, 
Government benefits, savings, and budgeting. The services of 
representatives of credit unions, banks, and those nonprofit military 
associations (provided such associations are not underwritten by a 
commercial insurance company) approved by the Military Departments may 
be used for

[[Page 198]]

this purpose. Under no circumstances shall commercial agents, including 
representatives of loan, finance, insurance or investment companies, be 
used for this purpose. Educational materials prepared or presented by 
outside organizations expert in this field may, with appropriate 
disclaimers and permission, be adapted or used if approved by the 
Military Department concerned. Presentations by approved organizations 
shall only be conducted at the express request of the installation 
commander.
    (2) The Military Departments shall also make qualified personnel and 
facilities available for individual counseling on loans and consumer 
credit transactions in order to encourage thrift and financial 
responsibility and promote a better understanding of the wise use of 
credit, as prescribed in DoD Directive 1344.9.\7\
---------------------------------------------------------------------------

    \7\ See footnote 1 to Sec. 43.6(d)(10).
---------------------------------------------------------------------------

    (3) Military members shall be encouraged to seek advice from a legal 
assistance officer or their own lawyer before making a substantial loan 
or credit commitment.
    (4) Each Military Department shall provide advice and guidance to 
military personnel who have a complaint under Pub. L. 90-321 or who 
allege a criminal violation of its provisions, including referral to the 
appropriate regulatory agency for processing of the complaint.
[51 FR 7552, Mar. 5, 1986, as amended at 52 FR 25008, July 2, 1987]

      Appendix A to Part 43--Life Insurance Products and Securities

             A. Life Insurance Product Content Prerequisites

    1. Insurance products, other than certificates or other evidence of 
insurance issued by a self-insured association, offered and sold 
worldwide to personnel on DoD installations, must:
    a. Comply with the insurance laws of the State or country in which 
the installation is located and the procedural requirements of this 
Directive.
    b. Contain no restrictions by reason of military service or military 
occupational specialty of the insured, unless such restrictions are 
clearly indicated on the face of the contract.
    c. Plainly indicate any extra premium charges imposed by reason of 
military service or military occupational specialty.
    d. Contain no variation in the amount of death benefit or premium 
based upon the length of time the contract has been in force, unless all 
such variations are clearly described therein.
    2. To comply with paragraphs A.1.b., c., and d., above, an 
appropriate reference stamped on the face of the contract shall draw the 
attention of the policyholder to any extra premium charges and any 
variations in the amount of death benefit or premium based upon the 
length of time the contract has been in force.
    3. Variable life insurance products may be offered provided they 
meet the criteria of the appropriate insurance regulatory agency and the 
Securities and Exchange Commission.
    4. Premiums shall reflect only the actual premiums payable for the 
life insurance product.

                          B. Sale of Securities

    1. All securities must be registered with the Securities and 
Exchange Commission.
    2. All sales of securities must comply with existing and appropriate 
Securities and Exchange Commission regulations.
    3. All securities representatives must apply directly to the 
commander of the installation on which they desire to solicit the sale 
of securities.
    4. Where the accredited insurer's policy permits, an overseas 
accredited life insurance agent--if duly qualified to engage in security 
activities either as a registered representative of the National 
Association of Securities Dealers or as an associate of a broker or 
dealer registered with the Securities and Exchange Commission--may offer 
life insurance and securities for sale simultaneously. In cases of 
commingled sales, the allotment of pay for the purchase of securities 
cannot be made to the insurer.

                  C. Use of the Allotment of Pay System

    1. Allotments of military pay for life insurance products shall be 
made in accordance with DoD Directive 7330.1.\8\
---------------------------------------------------------------------------

    \8\ See footnote 1 to Sec. 43.6(d)(10).
---------------------------------------------------------------------------

    2. For personnel in pay grades E-1, E-2, and E-3, at least seven 
days shall elapse for counseling between the signing of a life insurance 
application and the certification of an allotment. The purchaser's 
commanding officer may grant a waiver of this requirement for good 
cause, such as the purchaser's imminent permanent change of station.

                         D. Association--General

    The recent growth and general acceptability of quasimilitary 
associations offering

[[Page 199]]

various insurance plans to military personnel are acknowledged. Some 
associations are not organized within the supervision of insurance laws 
of either a State or the Federal Government. While some are organized 
for profit, others function as nonprofit associations under Internal 
Revenue Service regulations. Regardless of the manner in which insurance 
plans are offered to members, the management of the association is 
responsible for complying fully with the instructions contained herein 
and the spirit of this part.

Appendix B to Part 43--The Overseas Life Insurance Accreditation Program

                        A. Accreditation Criteria

    1. Initial Accreditation.
    a. Insurers must demonstrate continuous successful operation in the 
life insurance business for a period of not less than five years on 
December 31 of the year preceding the date of filing the application.
    b. Insurers must be listed in Best's Life-Health Insurance Reports 
and be assigned a rating of B+ (Very Good) or better for the business 
year preceding the Government's fiscal year for which accreditation is 
sought.
    2. Reaccreditation.
    a. Insurers must demonstrate continuous successful operation in the 
life insurance business, as described in subsection A.1.a., above.
    b. Insurers must retain a Best's rating of B+ or better, as 
described in paragraph A.1.b., above.
    c. Insurers must establish an agency sales force in one of the 
overseas commands within two years of initial accreditation.
    3. Waiver Provisions.
    Waivers of the initial accreditation and reaccreditation provisions 
will be considered for those insurers demonstrating substantial 
compliance with the aforementioned criteria.

                       B. Application Instructions

    1. Applications Filed Annually. During the months of May and June of 
each year insurers may apply for solicitation privileges for personnel 
assigned to U.S. military installations in foreign areas for the fiscal 
year beginning the following October 1.
    2. Application Prerequisites. A letter of application, signed by the 
president, vice president, or designated official of the insurance 
company shall be forwarded to the Assistant Secretary of Defense (Force 
Management and Personnel), Attention: Personnel Administration and 
Services Directorate, ODASD(MM&PP), The Pentagon, Washington, DC 20301-
4000. The letter shall contain the information set forth below, 
submitted in the order listed. Where not applicable, so state.
    a. The overseas commands (e.g., European, Pacific, Atlantic , 
Southern) where the company is presently soliciting, or planning to 
solicit on U.S. military installations.
    b. A statement that the company has complied with, or will comply 
with, the applicable laws of the country or countries wherein it 
proposes to solicit. ``Laws of the country'' means all natural, 
provincial, city, or county laws or ordinances of any country, as 
applicable.
    c. A statement that the products to be offered for sale conform to 
the standards prescribed in Appendix A and contain only the standard 
provisions such as those prescribed by the laws of the State where the 
company's headquarters are located.
    d. A statement that the company shall assume full responsibility for 
the acts of its agents with respect to solicitation. Sales personnel 
will be limited in numbers to one general agent and no more than 50 
sales personnel for each overseas area. If warranted, the number of 
agents may be further limited by the overseas command concerned.
    e. A statement that the company will not utilize agents who have not 
been accredited by the appropriate overseas command to sell to DoD 
personnel on or off its DoD installations.
    f. Any explanatory or supplemental comments that will assist in 
evaluating the application.
    g. If the Department of Defense requires facts or statistics beyond 
those normally involved in accreditation, the company shall make 
separate arrangements to provide them.
    h. A statement that the company's general agent and other accredited 
agents are appointed in accordance with the prerequisites established in 
section C., below.
    3. If a company is a life insurance company subsidiary, it must be 
accredited separately on its own merits.

                          C. Agent Requirements

    Unified commanders shall apply the following principles:
    1. An agent must possess a current State license. The overseas 
commander may waive this requirement for an accredited agent 
continuously residing and successfully selling life insurance in foreign 
areas, who, through no fault of his or her own, due to State law (or 
regulation) governing domicile requirements, or requiring that the 
agent's company be licensed to do business in that State, forfeits 
eligibility for a State license. The request for a waiver shall contain 
the name of the State or jurisdiction which would not renew the agent's 
license.
    2. General agents and agents shall represent only one accredited 
commercial insurance company. This requirement may be

[[Page 200]]

waived by the overseas commander if multiple representation can be 
proven to be in the best interest of DoD personnel.
    3. An agent must have at least one year of successful life insurance 
underwriting in the United States or its territories, generally within 
the five years preceding the date of application, in order to be 
designated as accredited and employed for overseas solicitation.
    4. Appropriate overseas commanders shall exercise further agent 
control procedures as deemed necessary.
    5. An agent, once accredited in an overseas area, may not change 
affiliation from the staff of one general agent to another and retain 
accreditation, unless the previous employer certifies in writing that 
the release is without justifiable prejudice. Unified commanders will 
have final authority to determine justifiable prejudice. Indebtedness of 
an agent to a previous employer is an example of justifiable prejudice.

                       D. Announcement of Findings

    1. Accreditation by the Department of defense upon annual 
applications of insurers shall be announced as soon as practicable by a 
notice to each applicant and by a listing released annually in September 
to the appropriate overseas commander. This approval does not constitute 
DoD endorsement of the insurer. Any advertising by insurers which 
suggests such endorsement is prohibited.
    2. In the event accreditation is denied, specific reasons for such 
findings shall be submitted to the applicant.
    a. Upon receipt of notification of an unfavorable finding, the 
insurer shall have 30 days from the receipt of such notification 
(forwarded certified mail, return recipt requested) in which to request 
reconsideration of the original decision. This request must be 
accompanied by substantiating data or information in rebuttal of the 
specific reasons upon which the adverse findings are based.
    b. Action by the Assistant Secretary of Defense (Force Management 
and Personnel) on appeal is final.
    c. If the applicant is presently accredited as an insurer, up to 90 
days from final action on an unfavorable finding shall be granted in 
which to close out operations.
    3. Upon receiving the annual letter of accreditation, each company 
shall send to the applicable unified commander a verified list of agents 
currently accredited for overseas solicitation. Where applicable, the 
company shall also include the names of new agents for whom original 
accreditation and permission to solicit on base is requested. Insurers 
initially accredited will be furnished instructions by the Department of 
Defense for agent accreditation procedures in overseas areas.
    4. Material changes affecting the corporate status and financial 
conditions of the company which may occur during the fiscal year of 
accreditation must be reported as they occur.
    a. The Department of Defense reserves the right to terminate 
accreditation if such material changes appear to substantially affect 
the financial and operational criteria described in section A., above, 
on which accreditation was based.
    b. Failure to report such material changes can result in termination 
of accreditation regardless of how it affects the criteria.
    5. If an analysis of information furnished by the company indicates 
that unfavorable trends are developing which may possibly adversely 
affect its future operations, the Department of Defense may, at its 
option, bring such matters to the attention of the company and request a 
statement as to what action, if any, is contemplated to deal with such 
unfavorable trends.



PART 44--SCREENING THE READY RESERVE--Table of Contents




Sec.
44.1  Purpose.
44.2  Applicability.
44.3  Definitions.
44.4  Policy.
44.5  Procedures.
44.6  Responsibilities.
44.7  Information requirements.

Appendix A to Part 44--Letter Format to Cognizant Reserve Personnel 
          Center Requesting That Employee Be Removed From the Ready 
          Reserve
Appendix B to Part 44--List of Reserve Personnel Centers to Which 
          Reserve Screening Determination and Removal Requests Shall be 
          Forwarded

    Authority: Title 10 U.S.C. 269, 271, 272, 652, 672, 673, 674, 685, 
and 1005 and E.O. 11190.

    Source: 49 FR 30067, July 26, 1984, unless otherwise noted.



Sec. 44.1  Purpose.

    This part updates and clarifies DoD policy, procedures, and 
responsibilities governing the screening of Ready Reservists, consistent 
with title 10 U.S.C. 269, 271, 272, 652, 672, 673, 674, 685, and 1005 
and E.O. 11190.



Sec. 44.2  Applicability.

    This part applies to the Office of the Secretary of Defense and the 
Military Departments (including their reserve components). The term 
``Military Services,'' as used herein, refers to the Army, the Navy, the 
Air Force, the Marine Corps, and the Coast Guard (by agreement with the 
Department of

[[Page 201]]

Transportation). Reserve components include the Army National Guard, the 
Army Reserve, the Naval Reserve, the Marine Corps Reserve, the Air 
National Guard, the Air Force Reserve, and the Coast Guard Reserve.



Sec. 44.3  Definitions.

    (a) Defense support industry. Any business or corporation so 
determined by FEMA.
    (b) Extreme community hardship. A situation that, because a 
reservist is mobilized, may have a substantially adverse effect on the 
health, safety, or welfare of the community. Any request for a 
determination of such hardship shall be made by the reservist and must 
be supported by documentation as required by the Secretary of the 
Military Department concerned.
    (c) Extreme personal hardship. An adverse impact upon a reservist's 
dependents resulting from his or her mobilization. Any request for a 
determination of such hardship shall be made by the reservist and must 
be supported by documentation as required by the Secretary of the 
Military Department concerned.
    (d) Key employee. Any Federal employee occupying a key position.
    (e) Key position. A Federal position that cannot be vacated during a 
national emergency or mobilization without seriously impairing the 
capability of the parent Federal agency or office to function 
effectively. There are three categories of Federal key positions. The 
first two categories are, by definition, key positions. Only the final 
category requires a case-by-case determination and designation:
    (1) The Vice President of the United States or any official 
specified in the order of presidential succession as set forth in 3 
U.S.C. 19.
    (2) Members of Congress, heads of Federal agencies appointed by the 
President with the consent of the Senate, and the Federal judiciary 
(District, Circuit, and Supreme Court judges and justices only; all 
other positions within the Federal judiciary shall be considered under 
the provisions of paragraph (e)(3) of this section). For the purposes of 
the definition contained in this paragraph, the terms ``heads of Federal 
agencies'' does not include any person appointed by the President with 
the consent of the Senate to a Federal agency as a member of a 
multimember board or commission. Positions occupied by such persons may 
be designated as key positions only by the application of the criteria 
set forth in Sec. 44.5(b)(2) of this part.
    (3) Other Federal positions determined by Federal agency heads, or 
their designees, to be key positions in accordance with the guidelines 
specified in Sec. 44.5(b)(2) of this part.
    (f) Ready Reserve. Units and individual reservists liable for active 
duty as outlined in 10 U.S.C. 672 and 673.
    (g) Selected Reserve. Part of the Ready Reserve of each reserve 
component consisting of units and individuals who participate actively 
in paid training periods and serve on paid active duty for training each 
year.
    (h) Standby Reserve. Units or members of the reserve components, 
other than those in the Ready Reserve or Retired Reserve, who are liable 
for active duty as provided in sections 672 and 674 of title 10, U.S.C.



Sec. 44.4  Policy.

    It is DoD policy that members of the Selected Reserve and other 
Ready Reservists who are not on active duty shall be screened at least 
annually to provide a Ready Reserve force composed of members who:
    (a) Meet Military Service wartime standards of mental, moral, 
professional, and physical fitness.
    (b) Possess the military qualifications required in the various 
ranks, grades, ratings, and specialties.
    (c) Are available immediately for active duty during a mobilization 
(or during a war or national emergency or in response to a presidential 
order to augment the active forces for an operational mission).



Sec. 44.5  Procedures.

    (a) Reserve component screening activities. The following general 
procedures shall be followed to ensure the immediate availability of a 
Ready Reserve force:
    (1) Annual screening. All Ready Reservists shall be screened at 
least annually to ensure their availability.

[[Page 202]]

Upon mobilization, all screening activity ceases, and all those 
remaining in the Ready Reserve shall be considered immediately available 
for active duty service.
    (2) Maintaining current data. The development and maintenance of 
current information pertaining to the mobilization availability of Ready 
Reservists shall be the responsibility of the Secretary of the Military 
Department concerned.
    (3) Civilian employment. After a mobilization is ordered, no 
deferment, delay, or exemption from mobilization will be granted to 
Ready Reservists because of their civilian employment.
    (4) Retention in the Ready Reserve. All Ready Reservists shall be 
retained in the Ready reserve for the entire period of their statutory 
obligation or voluntary contract. Exceptions to this policy are made in 
this part or may be made by the Secretaries of the Military Departments 
(10 U.S.C. 269).
    (5) Transfer of National Guard members to the Standby Reserve. In 
accordance with section 269(g) of title 10, U.S.C., a member of the Army 
National Guard or the Air National Guard may be transferred to the 
Standby Reserve only with the consent of the governor or other 
appropriate authority of the State, commonwealth, or territory concerned 
(including the District of Columbia).
    (6) Transfer from the Standby Reserve to the Ready Reserve. Under 
section 272 of title 10, U.S.C., any eligible member of the Standby 
Reserve may be transferred back to the Ready Reserve when the reason for 
the member's transfer to the Standby Reserve no longer exists (32 CFR 
part 100).
    (7) Extreme hardship. The Secretaries of the Military Departments 
shall screen extreme hardship cases (section 271a(5) of title 10, 
U.S.C.). Ready Reservists whose immediate recall to active duty during 
an emergency would create an extreme personal or community hardship 
shall be transferred to the Standby Reserve or the Retired Reserve or 
shall be discharged, as appropriate.
    (8) Miscellaneous screening requirements. Ready Reservists 
identified in the following categories shall be processed as follows:
    (i) Civilian employment restrictions. Ready Reservists who are also 
DoD civilian employees may not hold a mobilization assignment to the 
same positions that they fill as civilian employees. These Ready 
Reservists shall be reassigned or transferred, as appropriate. Reserve 
component unit civilian technicians, as members of reserve units, are 
excluded from this provision.
    (ii) Theological students. Ready Reservists who are preparing for 
the ministry in an accredited theological or divinity school cannot be 
involuntarily called to active duty or required to participate in 
inactive duty training (10 U.S.C. 685). Accordingly, such Ready 
Reservists (other than those participating in a military Chaplain 
Candidate or Theological Student Program) shall be transferred to the 
Standby Reserve (active status) for the duration of their ministerial 
studies at accredited theological or divinity schools. Ready Reservists 
participating in a military Chaplain Candidate or Theological Student 
Program may continue their Ready Reserve affiliation and engage in 
active duty and inactive duty training.
    (iii) Health care professionals. Ready Reservists may not be 
transferred from the Ready Reserve solely because they are students, 
interns, residents, or fellows in the health care professions. Upon 
mobilization, they either shall be deferred or shall be mobilized in a 
student, intern, resident, or fellow status until qualified in the 
appropriate military specialty as prescribed by the Military Department 
Secretaries (DoD Directive 1215.4).
    (9) Availability determinations. The Secretaries of the Military 
Departments shall make determinations for mobilization availability on a 
case-by-case basis, consistent with this part, and not by class or group 
determinations.
    (10) Removal determinations. Under this part, the Secretaries of the 
Military Departments shall review recommendations for removal of 
employees from the Ready Reserve submitted by employers and shall take 
appropriate action.
    (b) Screening activities by employers of Ready Reservists. In 
addition to the

[[Page 203]]

Ready Reserve screening activities prescribed in this part to be 
conducted by the Military Departments, employers of Ready Reservists 
also have certain screening responsibilities under the law.
    (1) Nonfederal employers. Under 44 CFR part 333, nonfederal 
employers of Ready Reservists, particularly in the fields of public 
health and safety and defense support industries, are encouraged to 
adopt personnel management procedures designed to preclude conflicts 
between the emergency manpower needs of civilian activities and the 
military during a mobilization. Employers also are encouraged to use the 
Federal key position guidelines contained herein for making their own 
key position designations and, when applicable, for recommending key 
employees for removal from the Ready Reserve.
    (2) Federal employers. Federal Preparedness Circular (FPC) 9 
promulgated policy for Ready Reserve screening activities that shall be 
accomplished by Federal sector employers. To ensure that Federal 
employees essential to the continuity of the Federal government are not 
retained as members of the Ready Reserve, the following procedures shall 
apply:
    (i) Key positions. Some Federal employees occupy positions that 
cannot be vacated during a national emergency or mobilization without 
seriously impairing the capability of their agency to function 
effectively. Because of the essential nature of these positions, the 
Federal agency head, or designee, concerned shall designate such 
positions as key positions and shall require that they not be filled by 
Ready Reservists to preclude such positions from being vacated during a 
mobilization. The Military Department Secretaries shall transfer Ready 
Reservists occupying key positions to the Standby Reserve or the Retired 
Reserve or shall discharge them, as appropriate, under 10 U.S.C. 271(b). 
However, reserve officers with a remaining military service obligation 
at the time of their removal from the Ready Reserve may be transferred 
only to the Standby Reserve, Active Status (section 1005 of title 10, 
U.S.C.).
    (ii) Key position designation guidelines. In determining whether or 
not a position should be designated as a key position, the following 
questions should be considered by the Federal agency concerned:
    (A) Can the position be filled in a reasonable time after 
mobilization?
    (B) Does the position require technical or managerial skills that 
are possessed uniquely by the incumbent imployee?
    (C) Is the position associated directly with defense mobilization?
    (D) Does the position include a mobilization or relocation 
assignment in an agency having emergency functions as designated by E.O. 
11490?
    (E) Is the position directly associated with industrial or manpower 
mobilization as designated in E.O. 11490 and E.O. 10480?
    (F) Are there other factors related to national defense, health, or 
safety that would make the incumbent of the position unavailable for 
mobilization?
    (c) Removal Recommendations. All employers who determine that a 
Ready Reservist is a key employee, in accordance with the guidelines 
contained in this part, promptly should report that determination to the 
cognizant reserve. The letter format shown in Appendix A should be used 
for such recommendations and should be mailed to the cognizant reserve 
personnel center listed in Appendix B. All the information shown in the 
letter format should be provided so the reserve personnel center can 
assess properly the matter and take appropriate action.
    (d) Resolution of conflicting manpower needs. In accordance with 44 
CFR part 333, the Federal Emergency Management Agency (FEMA) has the 
authority to adjudicate, before mobilization, conflicts between the 
mobilization manpower needs of the civilian sector and the military that 
the Ready Reserve screening process has identified but has not resolved.
    (e) Individual responsibilities of Ready Reservists. (1) Each Ready 
Reservist who is not a member of the Selected Reserve is obligated to 
notify the Secretary of the Military Department concerned of any change 
of address, marital status, number of dependents, or civilian employment 
and any other

[[Page 204]]

change that would prevent the member from meeting mobilization standards 
prescribed by the Military Service concerned (10 U.S.C. 652).
    (2) All Ready Reservists shall inform their employers of their 
Reserve military obligation.



Sec. 44.6  Responsibilities.

    (a) The Assistant Secretary of Defense (Reserve Affairs) (ASD(RA)) 
shall manage and control the overall Ready Reserve screening program in 
accordance with section 271 of title 10, U.S.C., E.O. 11190, and House 
Appropriations Committee Report 95-451.
    (b) The Secretaries of the Military Departments shall:
    (1) Screen, at least annually, all Ready Reservists under their 
jurisdiction to ensure their immediate availability for active duty.
    (2) Ensure that personnel records systems incorporate information on 
any factors that limit the mobilization availability of a Ready 
Reservist.
    (3) Ensure that all Ready Reservists have a favorably completed 
National Agency Check (NAC) or Entrance National Agency Check (ENTNAC) 
on file.
    (4) Ensure that Ready Reservists not on active duty are examined as 
to physical fitness in accordance with DoD Directive 1205.9.
    (5) Process members of the Ready Reserve who do not participate 
satisfactorily in accordance with parts 100, 101, and 115 of this title.
    (6) Transfer Ready Reservists identified as occupying key positions 
to the Standby Reserve or the Retired Reserve or discharge them, as 
appropriate.
    (7) After making a removal determination in response to a petition 
for such action, promptly transmit the results of that determination to 
the Ready Reservist concerned and his or her employer.



Sec. 44.7  Information requirements.

    The ASD(RA) shall provide:
    (a) Federal agencies with a listing of all Federal employees who are 
also Ready Reservists to assist them in conducting employer screening 
activities required in FPC-9. Responses from Federal agencies shall be 
reported under Interagency Report Control Number 0912-DoD-AN. Standard 
data elements shall be used in the report in accordance with DoD 
Directive 5000.11.
    (b) The House Appropriations Committee with an annual report on the 
status of Ready Reservists employed by the Federal government.

  Appendix A to Part 44--Letter Format to Cognizant Reserve Personnel 
    Center Requesting That Employee Be Removed From the Ready Reserve

(Date)
 _______________________________________________________________________
(YYMMDD)
From: (employer-agency or company)
To: (appropriate reserve personnel center)
Subject: Request for Employee to Be Removed from the Ready Reserve

    This is to certify that the employee identified below is vital to 
the nation's defense efforts in (his or her) civilian job and can't be 
mobilized with the Military Services in an emergency for the following 
reasons:
    Therefore, I request that (he or she) be removed from the Ready 
Reserve and that you advise me accordingly when this action has been 
completed.
    The employee is:

Name of employee (last, first, M.I.)
Military grade and reserve component
Social security number
Current home address (street, city, State, and ZIP code)
Military unit to which assigned (location and unit number)
Title of employee's civilian position
Grade or salary level of civilian position
Date (YYMMDD) hired or assigned to position.

 _______________________________________________________________________
Signature and title of agency or company official

   Appendix B to Part 44--List of Reserve Personnel Centers To Which 
 Reserve Screening Determination and Removal Requests Shall Be Forwarded

                  Army National Guard and Army Reserve

Headquarters, Department of the Army, Attn: DAPE-PSM, Washington, DC 
20310

                              Naval Reserve

Officers: Commander, Naval Military Personnel Center, Attention: NMPC-
911, Washington, DC 20370
Enlisted: Commanding Officer, Naval Reserve Personnel Center, New 
Orleans, LA 70149

[[Page 205]]

                          Marine Corps Reserve

Commandant (Code RES), Headquarters, U.S. Marine Corps, Washington, DC 
20380

                            Air Force Reserve

Commander (ARPC/DP), Air Reserve Personnel Center, 7300 East First 
Avenue, Denver, CO 80280

                           Air National Guard

    Submit requests to the adjutant general of the appropriate State, 
commonwealth, or territory (including the District of Columbia).

                           Coast Guard Reserve

Commandant (G-RA/55), U.S. Coast Guard Headquarters, 2100 Second Street 
SW., Washington, DC 20593.



PART 45--CERTIFICATE OF RELEASE OR DISCHARGE FROM ACTIVE DUTY (DD FORM 214/5 SERIES)--Table of Contents




Sec.
45.1  Purpose.
45.2  Applicability and scope.
45.3  Policy and procedures.
45.4  Responsibilities.

Appendix A to Part 45--DD Form 214
Appendix B to Part 45--DD Form 214WS
Appendix C to Part 45--DD Form 215
Appendix D to Part 45--State Directors of Veterans Affairs

    Authority: 10 U.S.C. 1168 and 972.

    Source: 54 FR 7409, Feb. 21, 1989, unless otherwise noted.



Sec. 45.1  Purpose.

    (a) This document revises 32 CFR part 45.
    (b) Prescribes procedures concerning the preparation and 
distribution of revised DD Form 214 to comport with the requirements of 
10 U.S.C. 1168, 972, and 32 CFR part 41 and the control and publication 
of separation program designators (SPDs).



Sec. 45.2  Applicability and scope.

    (a) The provisions of this part apply to the Office of the Secretary 
of Defense, the Military Services, the Joint Staff, and the Defense 
Agencies (hereafter referred to as ``DoD Components''). The term 
``Military Services,'' as used here, refers to the Army, Navy, the Air 
Force, the Marine Corps and, by agreement with the Department of 
Transportation, to the Coast Guard.
    (b) Its provisions include procedures on the preparation and 
distribution of DD Forms 214, 214WS, 215 (Appendices A, B, and C) which 
record and report the transfer or separation of military personnel from 
a period of active duty. (NOTE: Computer-generated formats are 
acceptable substitutes provided Assistant Secretary of Defense (Force 
Management and Personnel) approval is obtained.) DD Forms 214 and 215 
(or their substitutes) will provide:
    (1) The Military Services with a source of information relating to 
military personnel for administrative purposes, and for making 
determinations of eligibility for enlistment or reenlistment.
    (2) The Service member with a brief, clear-cut record of the 
member's active service with the Armed Forces at the time of transfer, 
release, or discharge, or when the member changes status or component 
while on active duty.
    (3) Appropriate governmental agencies with an authoritative source 
of information which they require in the administration of Federal and 
State laws applying to personnel who have been discharged, otherwise 
released, or transferred to a Reserve component while on active duty.
    (c) Its provisions include procedures on the control and 
distribution of all lists of SPDs.



Sec. 45.3  Policy and procedures.

    (a) Administrative issuance or reissuance of DD Forms 214 and 215.
    (1) The DD Form 214 will normally be issued by the command from 
which the member was separated. In those instances where a DD Form 214 
was not issued, the Services concerned may establish procedures for 
administrative issuance.
    (2) The DD Form 214, once issued, will not be reissued except:
    (i) When directed by appropriate appellate authority, Executive 
Order, or by the Secretary concerned.
    (ii) When it is determined by the Service concerned that the 
original DD Form 214 cannot be properly corrected by issuance of a DD 
Form 215 or if the correction would require issuance of more than two DD 
Forms 215.
    (iii) When two DD Forms 215 have been issued and an additional 
correction is required.

[[Page 206]]

    (3) Whenever a DD Form 214 is administratively issued or reissued, 
an appropriate entry stating that fact and the date of such action will 
be made in Block 18, Remarks, of the DD Form 214 unless the appellate 
authority, Executive Order, or Secretarial directive specifies 
otherwise.
    (b) The Military Services will ensure that every member (except as 
limited in paragraph (b)(2) of this section and excluding those listed 
in paragraph (c) of this section being separated from the Military 
Services is given a completed DD Form 214 describing relevant data 
regarding the member's service, and the circumstances of termination. DD 
Form 214 may also be issued under other circumstances prescribed by the 
Military Service concerned. A continuation sheet, if required, will be 
bond paper, and will reference: The DD Form 214 being continued; 
information from blocks 1 through 4; the appropriate block(s) being 
continued; the member's signature, date; and the authorizing official's 
signature. DD Forms 214 are not intended to have any legal effect on 
termination of the member's service.
    (1) Release or discharge from active service. (i) The original of DD 
Form 214 showing separation from a period of active service with a 
Military Service, including release from a status that is legally 
determined to be void, will be physically delivered to the separate 
prior to departure from the separation activity on the effective date of 
separation; or on the date authorized travel time commences.
    (A) Copy No. 4, containing the statutory or regulatory authority, 
reentry code, SPD code, and narrative reason for separation also will be 
physically delivered to the separatee prior to departure, if he/she so 
requested by initiating Block 30, Member Requests Copy 4.
    (B) Remaining copies of DD Form 214 will be distributed on the day 
following the effective date of separation.
    (ii) When separation is effected under emergency conditions which 
preclude physical delivery, or when the recipient departs in advance of 
normal departure time (e.g., on leave in conjunction with retirement; or 
at home awaiting separation for disability), the original DD Form 214 
will be mailed to the recipient on the effective date of separation.
    (iii) If the separation activity is unable to complete all items on 
the DD Form 214, the form will be prepared as completely as possible and 
delivered to the separatee. The separatee will be advised that a DD Form 
215 will be issued by the Military Service concerned when the missing 
information becomes available; and that it will not be necessary for the 
separatee to request a DD Form 215 for such information.
    (iv) If an optical character recognition format is utilized by a 
Military Service, the first carbon copy of the document will be 
physically delivered or mailed to the separatee as prescribed in 
paragraphs (b) (i) through (iii) of this section.
    (2) Release from active duty for training, full-time training duty, 
or active duty for special work. Personnel being separated from a period 
of active duty for training, full-time training duty, or active duty for 
special work will be furnished a DD Form 214 when they have served 90 
days or more, or when required by the Secretary concerned for shorter 
periods. Personnel shall be furnished a DD Form 214 upon separation for 
cause or for physical disability regardless of the length of time served 
on active duty.
    (3) Continuing on active duty. Members who change their status or 
component, as outlined below, while they are serving on active duty will 
be provided a completed DD form 214 upon:
    (i) Discharge for immediate enlistment or reenlistment (optional--at 
the discretion of the Military Services). However, Military Services not 
providing the DD Form 214 will furnish the member a DD Form 256, 
``Honorable Discharge Certificate,'' and will issue instructions 
requiring those military offices which maintain a member's records to 
provide necessary Service data to the member for application to 
appropriate civilian individuals, groups, and governmental agencies. 
Such data will include Service component, entry data and grades.
    (ii) Termination of enlisted status to accept an appointment to 
warrant or commissioned officer grade.

[[Page 207]]

    (iii) Termination of a temporary appointment to accept a permanent 
warrant or commission in the Regular or Reserve components of the Armed 
Forces.
    (iv) Termination of an officer appointment in one of the Military 
Services to accept appointment in another Service.
    (c) DD Form 214 need not be prepared for: (1) Personnel found 
disqualified upon reporting for active duty and who do not enter 
actively upon duties in accordance with orders.
    (2) Personnel whose active duty, active duty for training, full-time 
training duty or active duty for special work is terminated by death.
    (3) Personnel being removed from the Temporary Disability Retired 
List.
    (4) Enlisted personnel receiving temporary appointments to warrant 
or commissioned officer grades.
    (5) Personnel whose temporary warrant or commissioned officer status 
is terminated and who remain on active duty to complete an enlistment.
    (6) Personnel who terminate their Reserve component status to 
integrate into a Regular component.
    (7) Personnel separated or discharged who have been furnished a 
prior edition of this form, unless that form is in need of reissuance 
for some other reason.
    (d) Preparation. The Military Departments will issue instructions 
governing the preparation of DD Form 214, consistent with the following:
    (1) DD Form 214 is an important record of service which must be 
prepared accurately and completely. Any unavoidable corrections and 
changes made in the unshaded areas of the form during preparation shall 
be neat, legible and initialed on all copies by the authenticating 
official. The recipient will be informed that making any unauthorized 
change or alteration of the form will render it void.
    (2) Since DD Form 214 is often used by civilian personnel, 
abbreviations should be avoided.
    (3) Copies of DD Form 214 transmitted to various governmental 
agencies shall be legible, especially those provided to the Veterans 
Administration (Department of Veterans Affairs, effective March 15, 
1989, in accordance with section 18(a), Public Law 100-527 and the 
Department of Labor).
    (4) The authority for a member's transfer or discharge will be cited 
by reference to the appropriate Military Service regulation, 
instruction, or manual, followed by the appropriate separation program 
designator on copies 2, 4, 7, and 8 only. A narrative description to 
identify the reason for transfer or separation will not be used on copy 
1.
    (5) To assist the former Service member in employment placement and 
job counseling, formal inservice training courses successfully completed 
during the period covered by the form will be listed in Block 14, 
Military Education; e.g., medical, dental, electronics, supply, 
administration, personnel or heavy equipment operations. Training 
courses for combat skills will not be listed. See 1978 Guide to the 
Evaluation of Educational Experiences in the Armed Services for commonly 
accepted course titles and abbreviations.
    (6) For the purpose of reemployment rights (DoD Directive 1205.12) 
\1\) all extensions of service, except those under 10 U.S.C. 972, are 
considered to be at the request and for the convenience of the 
Government. In these cases, Block 18 of DD Form 214 will be annotated to 
indicate ``Extension of service was at the request and for the 
convenience of the Government.''
---------------------------------------------------------------------------

    \1\ Copies may be obtained if needed, from the U.S. Naval 
Publications and forms Center, Attn: Code 1062, 5801 Tabor Avenue, 
Philadelphia, PA.
---------------------------------------------------------------------------

    (7) When one or more of the data items on the DD Form 214 are not 
available and the document is issued to the separatee, the applicable 
block(s) will be annotated ``See Remarks.'' In such cases, Block 18 will 
contain the entry ``DD Form 215 will be issued to provide missing 
information.'' When appropriate, Block 18 will also reflect the amount 
of disability pay, and the inclusive dates of any nonpay/excess leave 
days.
    (8) The authorizing official (E-7, GS-7 or above) will sign the 
original in ink ensuring that the signature is legible on all carbon 
copies. If not, a second

[[Page 208]]

signature may be necessary on a subsequent carbon copy. The authorized 
official shall be an E-7, GS-7, or higher grade, except that the Service 
concerned may authorize chiefs of installation separation activities (E-
5, GS-5, or above) to serve in this capacity if designated in writing by 
the responsible commander and/or director (0-4, or above).
    (9) The following are the only authorized entries in Block 24, 
Character of Service, as appropriate: ``Honorable,'' ``Under Honorable 
Conditions (General),'' ``Under Other Than Honorable Conditions,'' ``Bad 
Conduct,'' ``Dishonorable,'' or ``Uncharacterized.'' When a discharge 
has been upgraded, the DD Form 214 will be annotated on copies 2 through 
8 in Block 18 to indicate the character of service has been upgraded; 
the date the application for upgrade was made; and the effective date of 
the corrective action.
    (10) The date entered in Block 12.a. shall be the date of enlistment 
for the earliest period of continuous active service for which a DD Form 
214 was not previously issued. For members who have previously 
reenlisted without being issued a DD Form 214, and who are being 
separated with any discharge characterization except ``Honorable,'' the 
following statement shall appear as the first entry in Block 18., 
``Remarks,'' on the DD Form 214: ``CONTINUOUS HONORABLE ACTIVE SERVICE 
FROM (applicable date) UNTIL (applicable date).'' The ``from'' date 
shall be the date of initial entry into active duty, or the first day of 
service for which a DD Form 214 was not previously issued, as 
applicable; the ``until'' date shall be the date before commencement of 
the current enlistment.
    (11) For Service members retiring from active duty enter in Block 
18., ``Subject to active duty recall by Service Secretary.''
    (12) For Service members being transferred to the Individual Ready 
Reserve, enter in Block 18., ``Subject to active duty recall and/or 
annual screening.''
    (e) Distribution. The Military Services will prescribe procedures 
governing the distribution of copies of the DD Forms 214 and 215, 
consistent with their internal requirements, and the following:
    (1) DD Form 214--(i) Copy No. 1 (original). To the member.
    (ii) Copy No. 2. To be used as the Military Services' record copy.
    (iii) Copy No. 3. To the Veterans Administration (Department of 
Veterans Affairs, effective March 15, 1989, in accordance with section 
18(a), Data Processing Center (214), 1614 E. Woodword Street, Austin, 
Texas 78772. A reproduced copy will also be provided to the hospital 
with the medical records if the individual is transferred to a VA 
hospital. If the individual completes VA Form 21-5267, ``Veterans 
Application for Compensation or Pension,'' include a copy of the DD Form 
214 with medical records forwarded to the VA regional office having 
jurisdiction over the member's permanent address. When an individual is 
in Service and enlisting or reenlisting in an active duty status or 
otherwise continuing on active duty in another status, copy No. 3 will 
not be forwarded to the VA.
    (iv) Copy No. 4. To the member, if the member so requested by having 
initialed Block 30. If the member does not request this copy, it may be 
retained in the master military personnel record, to be available in 
case the member requests a copy later.
    (v) Copy No. 5. To Louisiana UCX/UCFE, Claims Control Center, 
Louisiana Department of Labor, P.O. Box 94246, Capitol Station, Baton 
Rouge, Louisiana 70804-9246.
    (vi) Copy No. 6. To the appropriate State Director of Veterans 
Affairs (see enclosure 4), if the member so requested by having checked 
``Yes'' in Block 20, ``Member Requests Copy Be Sent to Director of 
Veterans Affairs.'' The member must specify the State. If the member 
does not request the copy be mailed, it may be utilized as prescribed by 
the Military Service concerned.
    (vii) Copies No. 7 and 8. To be distributed in accordance with 
regulations issued by the Military Service concerned.
    (viii) Additional Copy Requirements. Discharged Alien Deserters. 
Provide one reproduced copy of Copy No. 1 to the U.S. Department of 
State, Visa Office--SCA/VO, State Annex No. 2,

[[Page 209]]

Washington, DC 20520, to assist the Visa Office in precluding the 
unwarranted issuance of visas to discharged and alien deserters in 
accordance with DoD Directive 1325.2 \2\. Place of birth will be entered 
in Block 18.
---------------------------------------------------------------------------

    \2\ See footnote 1 to Sec. 545.3(d)(6).
---------------------------------------------------------------------------

    (2) DD Form 214-ws. Utilized to facilitate the preparation of DD 
Form 214. The document will be used and disposed of in accordance with 
regulations issued by the Military Service concerned.
    (3) DD Form 215. Utilized to correct errors in DD Form 214 
discovered after the original has been delivered and/or distribution of 
copies of the form has been made, and to furnish to separatee 
information not available when the DD Form 214 was prepared. The 
distribution of DD Form 215 will be identical to the distribution of DD 
Form 214.
    (4) Requests for Copies of DD Form 214 Subsequent to Separation. 
Agencies maintaining a separatee's DD Form 214 will provide a copy only 
upon written request by the member. Agencies will provide the member 
with 1 copy with the Special Additional Information section, and 1 copy 
with that information deleted. In the case of DD Form 214 issued prior 
to July 1, 1979, agencies will provide the member with 1 copy containing 
all items of information completed, and 1 copy with the following items 
deleted from the form: Specific authority and narrative reason for 
separation, reenlistment eligibility code, and separation program 
designator/number.
    (i) In those cases where the member has supplied an authorization to 
provide a copy of the DD Form 214 to another individual or group, the 
copy furnished will not contain the Special Additional Information 
section or, in the case of DD forms issued prior to July 1, 1979, those 
items listed in paragraph (e)(4) of this section.
    (ii) A copy will be provided to authorized personnel for official 
purposes only.
    (f) Procurement. Arrangements for procurement of DD Forms 214, 214-
ws, and 215 will be made by the Military Services.
    (g) Modification of Forms. The modification of the content or format 
of DD Forms 214, 214-ws, and 215 may not be accomplished without prior 
authorization of the Assistant Secretary of Defense (Force Management 
and Personnel) (ASD(FM&P)). Requests to add or delete information will 
be coordinated with the other Military Services in writing, prior to 
submission to the ASD(FM&P). If a Military Service uses computer 
capability to generate forms, the items of information may be arranged, 
the size of the information blocks may be increased or decreased, and 
copies 7 and/or 8 may be deleted at the discretion of the Service.



Sec. 45.4  Responsibilities.

    (a) The DD Forms 214 and 215 are a source of significant and 
authoritative information used by civilian and governmental agencies to 
validate veteran eligibility for benefits. As such, they are valuable 
forms and, therefore, vulnerable to fraudulent use. Since they are 
sensitive, the forms must be safeguarded at all times. They will be 
transmitted, stored, and destroyed in a manner which will prevent 
unauthorized use. The Military Services will issue instructions 
consistent with the following:
    (1) All DD Forms 214 will be surprinted with a reproducible screen 
tint using appropriate security ink on Blocks 1, 3, 4.a, 4.b, 12, and 18 
through 30. In addition Blocks 1, 3, 5, and 7 of the DD Form 215 will be 
similarly surprinted to make alterations readily discernible. No 
corrections will be permitted in the screened areas.
    (2) All forms will be secured after duty hours.
    (3) All obsolete forms will be destroyed.
    (4) All forms to be discarded, including those which are blank or 
partially completed, and reproduced copies of DD Form 214, will be 
destroyed. No forms will be discarded intact.
    (5) Blank forms given to personnel for educational or instructional 
purposes, and forms maintained for such use, are to be clearly voided in 
an unalterable manner.
    (6) The commander or commanding officer of each unit or activity 
authorized to issue DD Form 214 will appoint, in writing, a commissioned 
officer, warrant officer, enlisted member

[[Page 210]]

(grade E-7 or above), or DoD civilian (GS-7 or above) who will 
requisition, control, and issue blank DD Forms 214 and 215. The Service 
concerned may authorize an E-5 or GS-5 to serve in this capacity.
    (7) The Military Services will monitor the use of DD Form 214 and 
review periodically its issuance to insure compliance with procedures 
for safeguarding.
    (b) The DD Form 214-ws will contain the word ``WORKSHEET'' on the 
body of the form (see Appendix B). This DD Form 214-ws will be treated 
in the same manner as the DD Form 214.
    (c) The Military Services will issue appropriate instructions to 
separation activities stressing the importance of the DD Forms 214 and 
215 in obtaining veterans benefits, reemployment rights, and 
unemployment insurance.
    (d) Standard separation program designator (SPD) codes for officer 
and enlisted personnel developed under the provisions of DoD Instruction 
5000.12 \3\ are published in DoD 5000.12-M.
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 45.3(d)(6).
---------------------------------------------------------------------------

    (1) Requests to add, change, or delete an SPD code shall be 
forwarded by the DoD Component concerned with appropriate justification 
to the Assigned Responsible Agency accountable for evaluating, 
recommending approval of, and maintaining such codes: Department of the 
Navy, Office of The Chief of Naval Operations, (Attention: OP-161), room 
1514, Arlington Annex, Washington, DC 20350-2000.
    (2) Requests to add, change, or delete an SPD code will be submitted 
in accordance with section V., DoD Instruction 5000.12 with prior 
written approval by the ASD (FM&P), or his/her designee.
    (e) All lists of SPD codes, including supplemental lists, published 
by the DoD Components will be stamped ``For Official Use Only'' and will 
not be furnished to any agency or individual outside the Department of 
Defense.
    (1) Appropriate provisions of the Freedom of Information Act will be 
used to deny the release of the lists to the public. An individual being 
separated or discharged is entitled access only to his/her SPD code. It 
is not intended that these codes stigmatize an individual in any manner. 
They are intended for internal use by the Department of Defense in 
collecting data to analyze statistical reporting trends that may, in 
turn, influence changes in separation policy.
    (2) Agencies or individuals who come into the possession of these 
lists are cautioned on their use because a particular list may be 
outdated and not reveal correctly the full circumstances relating to an 
individual's separation or discharge.

[[Page 211]]

                   Appendix A to Part 45--DD Form 214
[GRAPHIC] [TIFF OMITTED] TD387I95EC23OC91.003


[[Page 212]]


[GRAPHIC] [TIFF OMITTED] TC23OC91.004


[[Page 213]]


[GRAPHIC] [TIFF OMITTED] TC23OC91.005


[[Page 214]]


[GRAPHIC] [TIFF OMITTED] TC23OC91.006

[54 FR 9985, Mar. 9, 1989]

[[Page 215]]

                  Appendix B to Part 45--DD Form 214ws
[GRAPHIC] [TIFF OMITTED] TC23OC91.007


[[Page 216]]



                   Appendix C to Part 45--DD Form 215
[GRAPHIC] [TIFF OMITTED] TC21OC91.050


[[Page 217]]



       Appendix D to Part 45--State Directors of Veterans Affairs

                                 Alabama

Director, Department of Veterans Affairs, P.O. Box 1509, Montgomery, AL 
36192-3701.

                                 Alaska

Director, Division of Veterans Affairs, Department of Military & 
Veterans Affairs, 3601 C Street, suite 620, Anchorage, AK 99503.

                             American Samoa

Veterans Affairs Officer, Office of Veterans Affairs, American Samoa 
Government, P.O. Box 2586, Pago Pago, AS 96799.

                                 Arizona

Director of Veterans Affairs, Arizona Veterans Service Commission, 3225 
N. Central Avenue, suite 910, Phoenix, AZ 85012.

                                Arkansas

Director, 1200 West 3rd, room 105, Box 1280, Little Rock, AR 72201.

                               California

Director, Department of Veterans Affairs, 1227 O Street, room 200A, 
Sacramento, CA 95814.

                                Colorado

Director, Division of Veterans Affairs, Department of Social Services, 
1575 Sherman Street, room 122, Denver, CO 80203.

                                Delaware

Chairman, Commission of Veterans Affairs, P.O. Box 1401, Dover, DE 
19901.

                          District of Columbia

Chief, Office of Veterans Affairs, 941 North Capitol Street NE., room 
1211 F, Washington, DC 20421.

                                 Florida

Director, Division of Veterans Affairs, P.O. Box 1437, St. Petersburg, 
FL 33731.

                                 Georgia

Commissioner, Department of Veterans Service, Floyd Veterans Memorial 
Bldg, suite E-970, Atlanta, GA 30334.

                                  Guam

Office of Veterans Affairs, P.O. Box 3279, Agana, Guam 96910.

                                 Hawaii

Director, Department of Social Services & Housing, Veterans Affairs 
Section, 3949 Diamond Head Road, Honolulu, HI 96809-0339.

                                  Idaho

Administrator, Division of Veterans Service, P.O. Box 6675, Boise, ID 
83707.

                               Connecticut

Commandant, Veterans Home and Hospital, 287 West Street, Rocky Hill, CT 
06067.

                                 Indiana

Director, Department of Veterans Affairs, 707 State Office Building, 100 
N. Senate Avenue, Indianapolis, IN 46204.

                                  Iowa

Administrator, Veterans Affairs Division, 7700 NW. Beaver Drive, Camp 
Dodge, Johnston, IA 50131-1902.

                                 Kansas

Executive Director, Kansas Veterans Commission, Jayhawk Tower, suite 
701, 700 SW. Jackson Street, Topeka, KS 66603-3150.

                                Kentucky

Director, Kentucky Center for Veterans Affairs, 600 Federal Place room 
1365, Louisville, KY 40202.

                                Louisiana

Executive Director, Department of Veterans Affairs, P.O. Box 94095, 
Capitol Station, Baton Rouge, LA 70804-4095.

                                  Maine

Director, Bureau of Veterans Services, State Office Building Station 
117, Augusta, ME 04333.

                                Maryland

Executive Director, Maryland Veterans Commission, Federal Bldg.--room 
110, 31 Hopkins Plaza, Baltimore, MD 21201.

                                Illinois

Director, Department of Veterans Affairs, 208 West Cook Street, 
Springfield, IL 62705.

                                Michigan

Director, Michigan Veterans Trust Fund, P.O. Box 30026, Ottawa Bldg, No. 
Tower, 3rd Floor, Lansing, MI 48909.

                                Minnesota

Commissioner, Department of Veterans Affairs, Veterans Service Building, 
2nd Floor, St. Paul, MN 55155.

                               Mississippi

President, State Veterans Affairs Board, 120 North State Street, War 
Memorial Building, room B-100, Jackson, MS 39201.

[[Page 218]]

                                Missouri

Director, Division of Veterans Affairs, P.O. Drawer 147, Jefferson City, 
MO 65101.

                                 Montana

Administrator, Veterans Affairs Division, P.O. Box 5715, Helena, MT 
59604.

                                Nebraska

Director, Department of Veterans Affairs, P.O. Box 95083, State Office 
Building, Lincoln, NE 68509.

                                 Nevada

Commissioner, Commission for Veterans Affairs, 1201 Terminal Way, room 
108, Reno, NV 89520.

                              Massachusetts

Commissioner, Department of Veterans Services, 100 Cambridge Street--
room 1002, Boston, MA 02202.

                               New Jersey

Director, Division of Veterans Programs & Special Services, 143 E. State 
Street, room 505, Trenton, NJ 08608.

                               New Mexico

Director, Veterans Service Commission, P.O. Box 2324, Santa Fe, NM 
87503.

                                New York

Director, Division of Veterans Affairs, State Office Building 6A-19, 
Veterans Highway, Hauppauge, NY 11788.

                             North Carolina

Asst Secretary for Veterans Affairs, Division of Veterans Affairs, 227 
E. Edenton Street, Raleigh, NC 27601.

                              North Dakota

Commissioner, Department of Veterans Affairs, 15 North Broadway, suite 
613, Fargo, ND 58102.

                                  Ohio

Director, Division of Soldiers Claims & Veterans Affairs, State House 
Annex, room 11, Columbus, OH 43215.

                                Oklahoma

Director, Department of Veterans Affairs, P.O. Box 53067, Oklahoma City, 
OK 73152.

                              New Hampshire

Director, State Veterans Council, 359 Lincoln Street, Manchester, NH 
03103.

                                 Oregon

Director, Department of Veterans Affairs, Oregon Veterans Building, 700 
Summer Street NE., suite 150, Salem, OR 97310-1270.

                              Pennsylvania

Director, Department of Military Affairs, Bureau for Veterans Affairs, 
Fort Indiantown Gap, Bldg 5-0-47, Annville, PA 17003-5002.

                               Puerto Rico

Director, Bureau of Veterans Affairs & Human Resources, Department of 
Labor, 505 Munoz Rivera Avenue, Hato Rey, PR 00918.

                              Rhode Island

Chief, Veterans Affairs Office, Metacom Avenue, Bristol, RI 02809.

                             South Carolina

Director, Department of Veterans Affairs, Brown State Office Building, 
1205 Pendleton Street, Columbia, SC 29201.

                              South Dakota

Director, Division of Veterans Affairs, 500 East Capitol Avenue, State 
Capitol Building, Pierre, SD 57501-5083.

                                Tennessee

Commissioner, Department of Veterans Affairs, 215 8th Avenue, North, 
Nashville, TN 37203.

                                  Texas

Executive Director, Veterans Affairs Commission of Texas, Box 12277, 
Capitol Station, Austin, TX 78711.

                                  Utah

No DVA.

                                 Vermont

Director, Veterans Affairs Office, State Office Building, Montpelier, VT 
05602.

                                Virginia

Director, Division of War Veterans Claims, 210 Franklin Road, SW., room 
1002, P.O. Box 809, Roanoke, VA 24004.

                             Virgin Islands

Director, Division of Veterans Affairs, P.O. Box 890, Christiansted, St. 
Croix, VI 00820.

                               Washington

Director, Department of Veterans Affairs, P.O. Box 9778, Mail Stop PM-
41, Olympia, WA 95804.

[[Page 219]]

                              West Virginia

Director, Department of Veterans Affairs, 605 Atlas Building, 
Charleston, WV 25301-9778.

                                Wisconsin

Secretary, Department of Veterans Affairs, P.O. Box 7843, 77 North 
Dickinson Street, Madison, WI 53707.



PART 46--FEDERAL VOTING ASSISTANCE PROGRAM--Table of Contents




Sec.
46.1  Reissuance and purpose.
46.2  Applicability and scope.
46.3  Definitions.
46.4  Policy.
46.5  Organization.
46.6  Responsibilities.

    Authority: Pub. L. 296, 84th Congress and 10 U.S.C. 133.

    Source: 45 FR 84766, Dec. 23, 1980, unless otherwise noted.



Sec. 46.1  Reissuance and purpose.

    This rule reissues this part dated September 25, 1963, and 
implements the Provisions of Executive Order 10646, November 23, 1955, 
wherein the Secretary of Defense was designated the Federal Coordinator 
for assigning responsibility and prescribing procedures to implement the 
absentee voting program authorized by the Federal Voting Assistance Act 
of 1955 (FVAA) and the Overseas Citizens Voting Rights Act of 1975 
(OCVRA). This part assigns responsibility and delegates authority to the 
Deputy Assistant Secretary of Defense (Administration) to carry out this 
program on behalf of the Secretary of Defense.



Sec. 46.2  Applicability and scope.

    (a) The provisions of this part apply to the Office of the Secretary 
of Defense, the Military Departments, the Organization of the Joint 
Chiefs of Staff, and the Defense Agencies (hereafter referred to as the 
``DoD Components'').
    (b) Other executive departments and agencies shall provide 
assistance to this program, upon request, as provided by sections 
1973cc-11 and 1973cc-13 of FVAA and 1973dd-2b of OCVRA. (Participating 
departments and agencies shall adopt regulations and procedures that 
conform to this part to the extent practicable, consistent with their 
organization missions.)



Sec. 46.3  Definitions.

    For the purpose of administering the Federal Voting Assistance 
Program, the following definitions apply:
    (a) Federal Election. Any general, special, or primary election held 
solely or in part for the purpose of selecting, nominating, or electing 
any candidate for the office of President, Vice President, Presidential 
Elector, Member of the United States Senate, Member of the United States 
House of Representatives, Delegate from the District of Columbia, 
Resident Commissioner from the Commonwealth of Puerto Rico, Delegate 
from Guam, or Delegate from the Virgin Islands.
    (b) State election. Any general, special, or primary election held 
solely or in part for the purpose of selecting, nominating, or electing 
any candidate for any State office, such as, governor, lieutenant 
governor, or attorney general.
    (c) Local election. An election which is less than a State election, 
such as a municipal, county, or township election.
    (d) Military Services. Refers to the Army, Navy, Air Force, Marine 
Corps, and the Coast Guard.
    (e) Uniformed Services. Refers to the Army, Navy, Air Force, Marine 
Corps, Coast Guard, the Commissioned Corps of the U.S. Public Health 
Service, and the Commissioned Corps of the National Oceanic and 
Atmospheric Administration.
    (f) Voter. A person in any of the following categories who is 
authorized by law and who is registered to vote in any primary, special, 
or general election.
    (1) Members of the Uniformed Services or Merchant Marine in active 
service and their spouses and dependents, wherever stationed.
    (2) U.S. citizens temporarily residing outside the United States.
    (3) Other U.S. citizens residing outside the United States not 
covered by any other category mentioned above and whose intent to return 
to their State of last residence may be uncertain.

[[Page 220]]

    (g) Voting residence. The legal residence or domicile in which the 
voter is registered to vote.



Sec. 46.4  Policy.

    (a) To implement and administer the FVAA and OCVRA, as amended/DoD 
Components and other participating Federal departments and agencies 
concerned with the voting program shall encourage their eligible voters 
to participate in the voting process of the Federal, State, and local 
governments.
    (b) The voting program shall be administered in such a manner as to 
ensure that voters are provided all necessary voting information, 
including voting age requirements, election dates, officers to be 
elected, constitutional amendments, other ballot proposals, and absentee 
registration and voting procedures.
    (c) When practicable and compatible with operational conditions, 
every voter shall be afforded an opportunity to register and vote in any 
election for which the State of his or her voting residence has 
established enabling laws and procedures.
    (d) Voting in person or by absentee process shall be offered when 
local conditions allow voters to prepare, send, and receive personal 
material. However, a determination by those administering the voting 
program that voting assistance cannot be rendered because it is 
impractical and incompatible with military or Federal operations shall 
be conclusive, if this determination is made in good faith. (See section 
1973cc-24, FVAA.)
    (e) Absentee voting procedures shall be prescribed in such a manner 
as to safeguard the integrity and secrecy of the ballot. In addition, 
all necessary steps shall be taken to prevent fraud and to protect 
voters against coercion of any sort.
    (1) No member of the Uniformed Services shall attempt to influence 
any other member to vote or not to vote for any particular candidate, or 
to require any member to march to any polling place or place of voting. 
(See section 1973cc-25 of FVAA.)
    (2) However, nothing in Sec. 46.4(e), above, shall be considered to 
prohibit free discussion regarding political issues or candidates for 
public office. (See enclosure 2 of DoD Directive 1344.10,\1\ Political 
Activities by Members of the Armed Forces, September 23, 1969.)
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, PA 
19120. Attention: Code 301.
---------------------------------------------------------------------------

    (3) No person in the Uniformed Services of the United States shall 
poll any other member to attempt to influence his or her vote before or 
after he or she votes. (See enclosure 2 of DoD Directive 1344.10.)
    (4) The provision in Sec. 46.4(c) above, shall not preclude making 
surveys for statistical compilations to measure the extent of voting 
participation of persons covered by the FVAA and OCVRA, as amended.



Sec. 46.5  Organization.

    In accordance with E.O. 10646, authority and responsibility are 
hereby delegated to the Deputy Assistant Secretary of Defense 
(Administration) to carry out this program on behalf of the presidential 
designee, the Secretary of Defense. The Deputy Assistant Secretary of 
Defense (Administration) is authorized to act for the presidential 
designee and to coordinate and facilitate such actions as may be 
required to discharge Federal responsibilities assigned in E.O. 10646, 
FVAA, and OCVRA.



Sec. 46.6  Responsibilities.

    (a) The Deputy Assistant Secretary of Defense (Administration) 
shall: (1) Manage, coordinate, or perform the tasks assigned to the 
presidential designee in E.O. 10646, the FVAA, and OCVRA.
    (2) Establish and maintain liaison with officials of the State 
legislatures, and with State and local election law officials.
    (3) Be the sole DoD representative for obtaining from each State 
current voting information and disseminating it to other executive 
departments, agencies, and DoD Components. In this regard, DoD 
Components and participating departments and agencies may not contact 
State voting officials about voting matters.
    (4) Encourage and assist States and other U.S. jurisdictions to 
adopt the

[[Page 221]]

mandatory and recommendatory provisions of the FVAA and OCVRA, and 
advise them on the applicability of Federal laws and regulations to 
their individual electoral systems.
    (5) Establish a DoD Voting Assistance Program to cover all eligible 
voters of the Department of Defense (military and civilian) and their 
eligible spouses and dependents, to assist these personnel to vote 
either in person or by absentee process.
    (6) Publicize the right of citizens to register and vote absentee 
under the FVAA and OCVRA.
    (7) Review and coordinate the informational and educational effort 
directed toward all persons covered by the FVAA and OCVRA.
    (8) Provide an ombudsman-type service for all persons covered by the 
FVAA and OCVRA and for State and local election officials.
    (9) Designate a week or day in September of each even-numbered year 
for the purpose of encouraging military personnel and their dependents 
to exercise their right to vote.
    (10) Conduct a survey of U.S. citizens (military and civilian) 
covered by the FVAA and OCVRA to gather necessary statistical 
information to prepare the biennial report to the President and Congress 
required by FVAA.
    (b) Heads of DoD Components shall: (1) Facilitate the dissemination 
of voting information and provide assistance to their own personnel, 
including the services of an official authorized to administer oaths.
    (i) In overseas areas, arrangements shall be made to provide 
absentee voting information and assistance to voters described in 
Sec. 46.5(f)(1) and (2).
    (ii) To the extent practical, information and assistance shall also 
be made available to voters described in Sec. 46.5(f)(3).
    (2) Ensure command support at all levels for the Voting Assistance 
Program.
    (3) Designate a senior officer of general or flag rank in each 
Military Service as the Senior Military Voting Representative to manage 
Military Service voting programs.
    (4) Designate voting officers or counselors at every level of 
command who are trained to carry out their assigned responsibilities. 
Voting officers or counselers should be readily available and equipped 
to give personal assistance to voters for Federal, State and local 
elections. In addition, any person who appears to need assistance in 
reading or understanding any English language material relating to 
voting or voter registration should receive immediate assistance in the 
appropriate language.
    (5) Ensure that voting information and related materials, such as 
the Voting Assistance Guide, and the Federal Post Card Application form 
(FPCA--SF 76 Current Edition), are obtained and disseminated in a timely 
manner. FPCAs are to be purchased in sufficient quantities to furnish 
registration and ballot request support for all primary and general 
elections.
    (6) Ensure the in-hand delivery of FPCAs by August 15 to Uniformed 
Services personnel, their spouses and eligible dependents, and civilian 
employees of the Uniformed Services, their spouses and eligible 
dependents, who are serving outside the territorial limits of the United 
States.
    (7) Ensure in-hand delivery of FPCAs by September 15 to Uniformed 
Services personnel and their spouses and eligible dependents within the 
United States, in accordance with FVAA.
    (8) Require Inspectors General to include the Federal Voting Program 
as an item for specific review at every level of command to ensure that 
persons are informed and provided an opportunity to exercise their right 
to vote, and that the command has adequately provided for voting 
officers or counselers.
    (9) Provide for continuing evaluation of command voting programs.
    (10) Establish and publicize the availability of a special telephone 
service, the ``Voting Action Line,'' to link unit voting officers or 
counselors with their respective Uniformed Service Senior Military 
Voting Representative or Voting Action Officer at the departmental 
level. Emphasis shall be placed on providing rapid, accurate responses 
and solutions to voting-oriented problems.
    (11) During Federal election years, ensure that all Armed Forces 
personnel receive at least one briefing, training

[[Page 222]]

period, or information period of instruction devoted to absentee 
registration and voting. Emphasis should be placed on the availability 
of voting information, supporting materials, personal assistance, and 
the importance of why every vote counts.
    (12) Ensure that telephone operators at every military installation 
are provided with the names and office telephone numbers of unit or 
installation voting officers or counselors.
    (13) File an After-Action Report in the form specified by the 
Director, Federal Voting Assistance Program.
    (14) Conduct a Ballot Transmission Survey in the manner specified by 
the Director, Federal Voting Assistance Program.



PART 47--ACTIVE DUTY SERVICE FOR CIVILIAN OR CONTRACTUAL GROUPS--Table of Contents




Sec.
47.1  Purpose.
47.2  Applicability and scope.
47.3  Definitions.
47.4  Policy.
47.5  Responsibilities.
47.6  Procedures.

Appendix A to Part 47--Instructions for Submitting Group Applications 
          Under Public Law 95-202
Appendix B to Part 47--The DoD Civilian/Military Service Review Board 
          and the Advisory Panel

    Authority: 38 U.S.C. 106 note.

    Source: 54 FR 39993, Sept. 29, 1989, unless otherwise noted.



Sec. 47.1  Purpose.

    This document:
    (a) Revises 32 CFR part 47 and implements Public Law 95-202.
    (b) Directs the Secretary of the Air Force to determine if an 
established group of civilian employees or contract workers provided 
service to the U.S. Armed Forces in a manner considered active military 
service for Department of Veterans Affairs (VA) benefits.
    (c) Establishes the DoD Civilian/Military Service Review Board and 
the Advisory Panel.
    (d) Establishes policy, assigns responsibilities, prescribes 
application procedures for groups and individuals, and clarifies the 
factors used to determine active duty (AD) service.



Sec. 47.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense (OSD), the 
Military Departments, and by agreement with the Department of 
Transportation (DoT), the U.S. Coast Guard.
    (b) Applies to any group application considered under Public Law 95-
202 after September 11, 1989 and to any individual who applies for 
discharge documents as a member of a group recognized by the Secretary 
of the Air Force.



Sec. 47.3  Definitions.

    Armed conflict. A prolonged period of sustained combat involving 
members of the U.S. Armed Forces against a foreign belligerent. The term 
connotes more than a military engagement of limited duration or for 
limited objectives, and involves a significant use of military and 
civilian forces.
    (a) Examples of armed conflict are World Wars I and II, and the 
Korean and Vietnam Conflicts.
    (b) Examples of military actions that are not armed conflicts are as 
follows:
    (1) The incursion into Lebanon in 1958, and the peacekeeping force 
there in 1983 and 1984.
    (2) The incursions into the Dominican Republic in 1965 and into 
Libya in 1986.
    (3) The intervention into Grenada in 1983.
    Civilian or contractual group. An organization similarly situated to 
the Women's Air Forces Service Pilots (a group of Federal civilian 
employees attached to the U.S. Army Air Force in World War II). Those 
organization members rendered service to the U.S. Armed Forces during a 
period of armed conflict in a capacity that was then considered civilian 
employment with the Armed Forces, or the result of a contract with the 
U.S. Government, to provide direct support to the Armed Forces.
    Recognized group. A group whose service the Secretary of the Air 
Force administratively has determined to have been ``active duty for the 
purposes of

[[Page 223]]

all laws administered by the Department of Veterans Affairs''; i.e., VA 
benefits under 38 U.S.C. 101.
    Similarly situated. A civilian or contractual group is similarly 
situated to the Women's Air Forces Service Pilots when it existed as an 
identifiable group at the time the service was being rendered to the 
U.S. Armed Forces during a period of armed conflict. Persons who 
individually provided support through civilian employment or contract, 
but who were not members of an identifiable group at the time the 
services were rendered, are not ``similarly situated'' to the Women's 
Air Forces Service Pilots of World War II.



Sec. 47.4  Policy.

    (a) Eligibility for consideration. To be eligible to apply for 
consideration under Public Law 95-202 and this part, a group must:
    (1) Have been similarly situated to the Women's Air Forces Service 
Pilots of World War II.
    (2) Have rendered service to the United States in what was 
considered civilian employment with the U.S. Armed Forces either through 
formal Civil Service hiring or less formal hiring if the engagement was 
created under the exigencies of war, or as the result of a contract with 
the U.S. Government to provide direct support to the U.S. Armed Forces.
    (3) Have rendered that service during a period of armed conflict.
    (4) Consist of living persons to whom VA benefits can accrue.
    (5) Not have already received benefits from the Federal Government 
for the service in question.
    (b) A determination of AD service that is considered to be 
equivalent to active military service is made on the extent to which the 
group was under the control of the U.S. Armed Forces in support of a 
military operation or mission during an armed conflict. The extent of 
control exerted over the group must be similar to that exerted over 
military personnel and shall be determined by, but not necessarily 
limited to, the following:
    (1) Incidents favoring equivalency--(i) Uniqueness of service. 
Civilian service (civilian employment or contractual service) is a vital 
element of the war-fighting capability of the Armed Forces. Civilian 
service during a period of armed conflict is not necessarily equivalent 
to active military service, even when performed in a combat zone. 
Service must be beyond that generally performed by civilian employees 
and must be occasioned by unique circumstances. For civilian service to 
be recognized under this part, the following factors must be present:
    (A) The group was created or organized by U.S. Government 
authorities to fill a wartime need or, if a group was not created 
specifically for a wartime need, but existed before that time, then its 
wartime mission was of a nature to substantially alter the 
organization's prewar character.
    (B) If the application is based on service in a combat zone, the 
mission of the group in a combat zone must have been substantially 
different from the mission of similar groups not in a combat zone.
    (ii) Organizational authority over the group. The concept of 
military control is reinforced if the military command authority 
determines such things as the structure of the civilian organization, 
the location of the group, the mission and activities of the group, and 
the staffing requirements to include the length of employment and pay 
grades of the members of the group.
    (iii) Integration into the military organization. Integrated 
civilian groups are subject to the regulations, standards, and control 
of the military command authority.
    (A) Examples include the following:
    (1) Exchanging military courtesies.
    (2) Wearing military clothing, insignia, and devices.
    (3) Assimilating the group into the military organizational 
structure.
    (4) Emoluments associated with military personnel; i.e., the use of 
commissaries and exchanges, and membership in military clubs.
    (B) A group fully integrated into the military would give the 
impression that the members of the group were military, except that they 
were paid and accounted for as civilians.
    (C) Integration into the military may lead to an expectation by 
members of the group that the service of the group

[[Page 224]]

imminently would be recognized as active military service. Such 
integration acts in favor of recognition.
    (iv) Subjection to military discipline. During past armed conflicts, 
U.S. military commanders sometimes restricted the rights or liberties of 
civilian members as if they were military members.
    (A) Examples include the following:
    (1) Placing members under a curfew.
    (2) Requiring members to work extended hours or unusual shifts.
    (3) Changing duty assignments and responsibilities.
    (4) Restricting proximity travel to and from the military 
installation.
    (5) Imposing dress and grooming standards.
    (B) Consequences for noncompliance might include a loss of some 
privilege, dismissal from the group, or trial under military law. Such 
military discipline acts in favor of recognition.
    (v) Subjection to military justice. Military members are subject to 
the military criminal justice system. During times of war, ``persons 
serving with or accompanying an Armed Force in the field'' are subject 
to the military criminal justice code. Those who were serving with the 
U.S. Armed Forces may have been treated as if they were military and 
subjected to court-martial jurisdiction to maintain discipline. Such 
treatment is a factor in favor of recognition.
    (vi) Prohibition against members of the group joining the armed 
forces. Some organizations may have been formed to serve in a military 
capacity to overcome the operation of existing laws or treaty or because 
of a governmentally established policy to retain individuals in the 
group as part of a civilian force. These factors act in favor of 
recognition.
    (vii) Receipt of military training and/or achievement of military 
capability. If a group employed skills or resources that were enhanced 
as the result of military training or equipment designed or issued for 
that purpose, this acts toward recognition.
    (2) Incidents not favoring equivalency--(i) Submission to the U.S. 
Armed Forces for protection. A group that seeks protection and 
assistance from the U.S. Armed Forces and submits to military control 
for its own well-being is not deemed to have provided service to the 
Armed Forces equivalent to AD military service, even though the group 
may have been as follows:
    (A) Armed by the U.S. military for defensive purposes.
    (B) Routed by the U.S. military to avoid the enemy.
    (C) Instructed by the U.S. military for the defense of the group 
when attacked by, or in danger of attack by, the enemy.
    (D) Otherwise submitted themselves to the U.S. military for 
sustenance and protection.
    (ii) Permitted to resign. The ability of members to resign at will 
and without penalty acts against military control. Penalty may be direct 
and severe, such as confinement, or indirect and moderate, such as 
difficult and costly transportation from an overseas location.
    (iii) Prior recognition of group service. Recognition of a group's 
service by agencies of State or local government does not provide 
support in favor of recognition under this part.
    (3) Status of group in international law. In addition to other 
factors, consideration will be given to whether members of the group 
were regarded and treated as civilians, or assimilated to the Armed 
Forces as reflected in treaties, customary international law, judicial 
decisions, and U.S. diplomatic practice.
    (c) Reconsideration. Applications by groups previously denied a 
favorable determination by the Secretary of the Air Force shall be 
reconsidered under this part if the group submits evidence that is new, 
relevant, and substantive. Any request that the DoD Civilian/Military 
Service Review Board established hereunder (see Sec. 47.5(b)) determines 
does not provide new, relevant, and substantive evidence shall be 
returned to the applicant with the reasons for nonacceptance.
    (d) Counsel Representation. Neither the Department of Defense nor 
Department of Transportation shall provide representation by counsel or 
defray the cost of such representation with respect to any matter 
covered by this part.

[[Page 225]]



Sec. 47.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Force Management and 
Personnel) (ASD(FM&P)) shall:
    (1) Appoint a primary and an alternate member in the grade of O-6 or 
GM-15 or higher to the DoD Civilian/Military Service Review Board.
    (2) Exercise oversight over the Military Departments and the U.S. 
Coast Guard for compliance with this Directive and in the issuance of 
discharge documents and casualty reports to members of recognized 
groups.
    (b) The Secretary of the Air Force, as the designated Executive 
Agent of the Secretary of Defense for the administration of Public Law 
95-202 shall:
    (1) Establish the DoD Civilian/Military Service Review Board and the 
Advisory Panel.
    (2) Appoint as board president a member or employee of the Air Force 
in grade O-6 or GM-15 or higher.
    (3) Request the Secretary of Transportation to appoint an additional 
voting member from the U.S. Coast Guard when the board is considering 
the application of a group claiming active Coast Guard service.
    (4) Provide a recorder and an assistant to maintain the records of 
the board and administer the functions of this part.
    (5) Provide nonvoting legal advisors and historians.
    (6) Publish notices of group applications and other Public Law 95-
202 announcements in the Federal Register.
    (7) Consider the rationale and recommendations of the DoD Civilian/
Military Service Review Board.
    (8) Determine whether the service rendered by a civilian or 
contractual group shall be considered AD service to the U.S. Armed 
Forces for all laws administered by the VA. The decision of the 
Secretary of the Air Force is final. There is no appeal.
    (9) Notify the following persons in writing when a group 
determination is made (if the Secretary of the Air Force disagrees with 
the rationale or recommendations of the board, the Secretary of the Air 
Force shall provide the decision and reasons for it in writing to these 
persons):
    (i) The applicant(s) for the group.
    (ii) The Secretary of the Department of Veterans Affairs.
    (iii) The Secretary of the Army.
    (iv) The Secretary of the Navy.
    (v) The ASD (FM&P).
    (vi) The Secretary of Transportation (when a group claims active 
Coast Guard service).
    (c) The Secretary of the Army, Secretary of the Navy, Secretary of 
the Air Force, and Commandant of the Coast Guard shall:
    (1) Appoint to the board a primary and an alternate member in the 
grades of O-6 or GM-15 or higher from their respective Military 
Services.
    (2) Process applications for discharge documents from individuals 
claiming membership in a recognized group in accordance with applicable 
laws, Directives, the Secretary of the Air Force rationale and 
instrument effecting a group determination, and any other instructions 
of the board.
    (3) Determine whether the applicant was a member of a recognized 
group after considering the individual's evidence of membership and 
verifying the service against available Government records.
    (4) Issue a DD Form 214, ``Certificate of Release or Discharge from 
Active Duty,'' and a DD Form 256, ``Honorable Discharge Certificate,'' 
or a DD Form 257, ``General Discharge Certificate,'' as appropriate, 
consistent with DoD Instruction 1336.1 \1\ and DoD Directive 1332.14 \2\ 
and the implementing documents of the appropriate statutes of the 
Military Department concerned or the DoT and the instructions of the DoD 
Civilian/Military Service Review Board.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, Attn: 1053, 5801 Tabor Avenue, 
Philadelphia, PA 19120.
    \2\ See footnote 1 to Sec. 47.5(c)(4).
---------------------------------------------------------------------------

    (5) Issue a DD Form 1300, ``Report of Casualty,'' in accordance with 
DoD Instruction 1300.9 \3\ if a verified member was killed during the 
period of AD service.
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 47.5(c)(4).
---------------------------------------------------------------------------

    (6) Ensure that each DD Form 214, ``Certificate of Release or 
Discharge from Active Duty,'' and each DD Form 1300, ``Report of 
Casualty,'' have the

[[Page 226]]

---------------------------------------------------------------------------
following statement entered in the ``Remarks'' section:

    This document, issued under Public Law 95-202 (38 U.S.C. 106 Note), 
administratively establishes active duty service for the purposes of 
Department of Veterans Affairs benefits.

    (7) Determine the equivalent military pay grade, when required by 
the Department of Veterans Affairs. For VA benefits, a pay grade is 
needed only in cases when an individual was killed or received service-
connected injuries or disease during the recognized period of AD 
service. A DD Form 1300 shall be issued with the equivalent pay grade 
annotated for a member who died during the recognized period of service. 
A DD Form 214 shall not include pay grade, unless the Department of 
Veterans Affairs requests that a grade determination be given. 
Determinations of equivalent grade shall be based on the following 
criteria in order of importance:
    (i) Officially recognized organizational grade or equivalent rank.
    (ii) The corresponding rank for civilian pay grade.
    (iii) If neither of the criteria in paragraphs (c)(7) (i) and (ii) 
of this section, and applies, only one of three grades may be issued; 
i.e., O-1, E-4, or E-1. Selection depends on the nature of the job 
performed, the level of supervision exercised, and the military 
privileges to which the individual was entitled.
    (8) Adjudicate applicant challenges to the period of AD service, 
characterization of service, or other administrative aspects of the 
discharge documents issued.



Sec. 47.6  Procedures.

    (a) Submitting group applications. Applications on behalf of a 
civilian or contractual group shall be submitted to the Secretary of the 
Air Force using the instructions in appendix A to this part.
    (b) Processing group applications. (1) When received, the recorder 
shall review the application for sufficiency and either return it for 
more information or accept it for consideration and announce acceptance 
in the Federal Register.
    (2) The recorder shall send the application to the appropriate 
advisory panel for historical review and analysis.
    (3) When received, the recorder shall send the advisory panel's 
report to the applicant for comment. The applicant's comments shall be 
referred to the advisory panel if significant disagreement requires 
resolution. Additional comments from the historians also shall be 
referred to the applicant for comment.
    (4) The DoD Civilian/Military Service Board shall consider the group 
application, as established, in paragraph (a) and paragraphs (b) (1) 
through (3) of this section.
    (5) After the Secretary of the Air Force makes a decision, the 
recorder shall notify the applicant of the decision and announce it in 
the ``Federal Register.''
    (c) Submitting individual applications. When a group is recognized, 
individual members may apply to the appropriate Military Department or 
to the Coast Guard for discharge documents. Submit applications on DD 
Form 2168, ``Application for Discharge of Member or Survivor of Member 
of Group Certified to Have Performed Active Duty with the Armed Forces 
of the United States.'' An application on behalf of a deceased or 
incompetent member submitted by the next of kin must be accompanied by 
proof of death or incompetence.

 Appendix A to Part 47--Instructions for Submitting Group Applications 
                         Under Public Law 95-202

    A. In Submitting a Group Application: 1. Define the group to include 
the time period that your group provided service to the U.S. Armed 
Forces.
    2. Show the relationship that the group had with the U.S. Armed 
Forces, the manner in which members of the group were employed, and the 
services the members of the group provided to the Armed Forces.
    3. Address each of the factors in Sec. 47.4.
    4. Substantiate and document the application. (The burden of proof 
rests with the applicant.)
    B. Send Completed Group Applications To: Secretary of the Air Force 
(SAF/MRC), DoD Civilian/Military Service Review Board, Washington, DC 
20330-1000.

[[Page 227]]

 Appendix B to Part 47--The DoD Civilian/Military Service Review Board 
                         and the Advisory Panel

                     A. Organization and Management

    1. The board shall consist of a president selected from the 
Department of the Air Force and one representative each from the OSD, 
the Department of the Army, the Department of the Navy, the Department 
of the Air Force, and the U.S. Coast Guard (when the group claims active 
Coast Guard service). Each member shall have one vote except that the 
president shall vote only to break a tie. The board's decision is 
determined by majority vote. The president and two voting members shall 
constitute a quorum.
    2. The advisory panel shall act as a nonvoting adjunct to the board. 
It shall consist of historians selected by the Secretaries of the 
Military Departments and, if required, by the Secretary of 
Transportation. The respective Military Departments and the DOT shall 
ensure that the advisory panel is provided with administrative and legal 
support.

                              B. Functions

    1. The board shall meet in executive session at the call of the 
president, and shall limit its reviews to the following:
    a. Written submissions by an applicant on behalf of a civilian or 
contractual group. Presentations to the board are not allowed.
    b. Written report(s) prepared by the advisory panel.
    c. Any other relevant written information available.
    d. Factors established in this part for determining AD service.
    2. The board shall return to the applicant any application that does 
not meet the eligibility criteria established in Sec. 47.4(a). The board 
only needs to state the reasons why the group is ineligible for 
consideration under this part.
    3. If the board determines that an application is eligible for 
consideration under Sec. 47.4(a), the board shall provide, to the 
Secretary of the Air Force, a recommendation on the AD service 
determination for the group and the rationale for that recommendation 
that shall include, but not be limited to, a discussion of the factors 
listed in Sec. 47.4.
    a. No factors shall be established that require automatic 
recognition. Neither the board nor the Secretary of the Air Force shall 
be bound by any method in reaching a decision.
    b. Prior group determinations made under Public Law 95-202 do not 
bind the board or the Secretary of the Air Force. The board and the 
Secretary of the Air Force fully and impartially shall consider each 
group on its own merit in relation to the factors listed in section D. 
of this Directive.



PART 48--RETIRED SERVICEMAN'S FAMILY PROTECTION PLAN--Table of Contents




                     Subpart A--General Information

Sec.
48.101  Purpose.
48.102  Definitions.

                     Subpart B--Election of Options

48.201  Options.
48.202  Limitation on number of annuities.
48.203  Election of options.
48.204  Change or revocation of election.
48.205  Election form.
48.206  Information regarding elections.

                 Subpart C--Designation of Beneficiaries

48.301  Designation.
48.302  Substantiating evidence regarding dependency and age of 
          dependents.
48.303  Condition affecting entitlement of widow or widower.

                   Subpart D--Reduction of Retired Pay

48.401  Computation of reduction.
48.402  Effective date of reduction.
48.403  Payment of nonwithheld reduction of retired pay.
48.404  Ages to be used.
48.405  Action upon removal from temporary disability retired list.
48.406  Withdrawal and reduction of percentage or amount of 
          participation.

                           Subpart E--Annuity

48.501  General information.
48.502  Effective date of annuity.
48.503  Claims for annuity payments.
48.504  Payment to children.
48.505  Establishing eligibility of annuitants.
48.506  Recovery of erroneous annuity payments.
48.507  Restriction on participation.
48.508  Certain 100 percent disability retirements.

                        Subpart F--Miscellaneous

48.601  Annual report.
48.602  Organization.
48.603  Correction of administrative deficiencies.
48.604  Transition and protective clauses.

    Authority: Sec. 1444, 70A Stat. 111; 10 U.S.C. 1444.

    Source: 34 FR 12092, July 18, 1969, unless otherwise noted.

[[Page 228]]



                     Subpart A--General Information



Sec. 48.101  Purpose.

    The purpose of the Retired Serviceman's Family Protection Plan is to 
permit each member of the uniformed services to elect to receive a 
reduced amount of any retired pay which may be awarded him as a result 
of service in his uniformed service in order to provide an annuity 
payable after his death (while entitled to retired pay) to his widow, 
child, or children, subject to certain limitations specified in the law 
and elaborated in the regulations in this part.



Sec. 48.102  Definitions.

    (a) The terms Plan or RSFPP as hereinafter used means the Retired 
Serviceman's Family Protection Plan (formerly called the Uniformed 
Services Contingency Option Act).
    (b) The term uniformed services means the Army, Navy, Air Force, 
Marine Corps, Coast Guard, Commissioned Corps of Environmental Science 
Services Administration, and Commissioned Corps of Public Health 
Service.
    (c) The term member means a commissioned officer, commissioned 
warrant officer, warrant officer, nurse, flight officer, or a person in 
an enlisted grade (including an aviation cadet) of any of the uniformed 
services, and a person in any of these categories who is entitled to or 
is in receipt of retired pay, except persons excluded in title 10, U.S. 
Code, section 1431(a), as amended.
    (d) The term widow includes widower and refers to the lawful spouse 
of the member on the date of retirement with pay.
    (e) The term child means, in all cases, a member's child, who is 
living on the date of retirement of the member with pay and who meets 
the following requirements:
    (1) A legitimate child under 18 years of age and unmarried.
    (2) A stepchild, under 18 years of age and unmarried, who is in fact 
dependent on the member for support (see paragraphs (f) and (g) of this 
section).
    (3) A legally adopted child, under 18 years of age and unmarried.
    (4) A child, as defined above, who is 18 or more years of age and 
unmarried, and who is incapable of self-support because of being 
mentally defective or physically incapacitated if that condition existed 
prior to reaching age 18.
    (5) A child as defined above, who is at least 18, but under 23 years 
of age and unmarried, who is pursuing a full-time course of study or 
training in a high school, trade school, technical or vocational 
institute, junior college, college, university, or comparable recognized 
educational institution. (Applicable only in the case of members who 
retired on or after Nov. 1, 1968).
    (6) A child loses his eligibility for an annuity under this part if 
he is adopted by a third person before the parent-member's death. His 
eligibility is not affected if he is adopted by a third person after the 
parent-member's death (36 Comp. Gen. 325).
    (f) The term stepchild means a child of a member's spouse by a 
former marriage. The stepchild relationship terminates upon the divorce 
of the parent spouse, but not upon the death of the parent spouse.
    (g) The term in fact dependent means that the stepchild must be 
dependent on the member for over half of his or her support.
    (h) The term retirement means retirement with eligibility to receive 
retired pay.
    (i) The term retired pay includes retired, retirement, equivalent 
and retainer pay awarded as a result of service in the uniformed 
services.
    (j) The term reduced retired pay means the retired pay remaining 
after the cost of participation in RSFPP has been subtracted.
    (k) The term department concerned means (1) the Department of the 
Army with respect to the Army, (2) the Department of the Navy with 
respect to the Navy and Marine Corps, (3) the Department of the Air 
Force with respect to the Air Force, (4) the Department of 
Transportation with respect to the Coast Guard, (5) the Department of 
Commerce with respect to the Environmental Science Services 
Administration, and (6) the Department of Health, Education, and Welfare 
with respect to the Public Health Service.
    (l) The term dependent means the prospective annuitants described in 
paragraphs (d) and (e) of this section.

[[Page 229]]

    (m) The term Board of Actuaries means the Government Actuary in the 
Department of the Treasury, the Chief Actuary of the Social Security 
Administration, and a member of the Society of Actuaries appointed by 
the President to advise the Secretary of Defense on the administration 
of the Plan.
    (n) The term Joint Board means representatives of the uniformed 
services appointed under the provisions of Sec. 48.602.
    (o) The term years of service means years of service creditable in 
the computation of basic pay.
    (p) The term election means the choice of options made by the member 
under the RSFPP. This term includes a modification of a previous 
election or an election submitted after a revocation of a previous 
option(s) elected.
    (q) The term elections in effect means valid elections existing on 
the day of retirement.
    (r) A recognized educational institution is defined as a high 
school, trade school, technical or vocational institute, junior college, 
college, university, or comparable recognized educational institution 
which meets one or more of the following criteria:
    (1) It is operated or directly supported by the United States, or a 
State, or local governmental agency.
    (2) It is accredited by a nationally recognized or State recognized 
accrediting agency.
    (3) It is approved as an educational institution by a State or local 
governmental agency.
    (4) Its credits are accepted for transfer (or for admission) by 
three or more accredited schools on the same basis as credits from an 
accredited school.



                     Subpart B--Election of Options



Sec. 48.201  Options.

    As provided in Sec. 48.203, a member may elect one or more of the 
following annuities. The amount must be specified at time of election, 
and may not be for more than 50 per centum nor less than 12\1/2\ per 
centum of his retired pay, in no case may be less than a $25 monthly 
annuity be elected. If the election is made in terms of dollars, the 
amount may be more than 50 per centum of the retired pay that he would 
receive if he were to retire at the time of election; however, if such 
elected amount exceeds 50 per centum of his retired pay when he does 
retire, it shall be reduced to an amount equal to such 50 per centum. 
Also, if the dollar amount elected is less than 12\1/2\ per centum of 
his retired pay when he does retire, it shall be increased to an amount 
equal to such 12\1/2\ per centum.
    (a) Option 1 is an annuity payable to or on behalf of his widow, the 
annuity to terminate upon her death or remarriage.
    (b) Option 2 is an annuity payable to or on behalf of his surviving 
child or children as defined in Sec. 48.102, the annuity to terminate 
when there ceases to be at least one such surviving child eligible to 
receive the annuity. Each payment under such annuity shall be paid in 
equal shares to or on behalf of the surviving children remaining 
eligible at the time the payment is due. A member who had this option in 
effect on the date of retirement, and who retired on or after November 
1, 1968, may apply to the Secretary concerned to have a child (other 
than a child described in Sec. 48.102(e)(4)) who is at least 18 but less 
than 23 years of age considered not to be an eligible beneficiary under 
this paragraph (b) or Sec. 48.202. Normally such applications will be 
approved.
    (c) Option 3 is an annuity to or on behalf of his widow and 
surviving child or children. Such annuity shall be paid to the widow 
until death or remarriage, and thereafter each payment under such 
annuity shall be paid in equal shares to or on behalf of the surviving 
children remaining eligible at the time the payment is due. A member may 
provide for allocating, during the period of the surviving spouse's 
eligibility, a part of the annuity under this subpart B for payment to 
those of his surviving children who are not children of that spouse. The 
sum allotted will not exceed the equitable share for which such children 
would be eligible after the death of the widow.
    (d) When no eligible beneficiary remains to benefit from the option 
elected, the member's retired pay will be restored (except as provided 
in Sec. 48.604, for certain members retired before Aug. 13, 1968). All 
elections on file on

[[Page 230]]

Aug. 13, 1968, for members not entitled to receive retired pay will be 
considered to include the restoration feature with attendant cost 
factors being applied at time of retirement. For the purpose of this 
paragraph, a child (other than a child described in Sec. 48.102(e)(4)) 
who is at least 18 but less than 23 years of age, and is not pursuing a 
course of study as defined in Sec. 48.102(e)(5), shall be considered an 
eligible beneficiary unless an approved application by the member 
pursuant to Sec. 48.201(b) that such a child is not to be considered an 
eligible beneficiary is in effect (for members who retire on or after 
Nov. 1, 1968).



Sec. 48.202  Limitation on number of annuities.

    When a member desires to provide both the annuity provided by Option 
1 and Option 2, he may elect amounts that, in total, meet the 
limitations specified in Sec. 48.201. The cost of each annuity, and the 
amount of each annuity shall be determined separately. A member may not 
elect the combination of Options 1 and 3 or Options 2 and 3 in any case. 
The combined amount of the annuities may not be more than 50 per centum 
nor less than 12\1/2\ per centum of his retired pay. In no case may less 
than a $25 per month combined annuity be provided.



Sec. 48.203  Election of options.

    (a) A member who has completed less than 19 years of service as 
defined in Sec. 48.102(o) may elect to receive a reduced amount of 
retired pay in order to provide one or more of the annuities as 
specified in Secs. 48.201 and 48.202, payable after his death while 
entitled to retired pay to or on behalf of his surviving widow, child, 
or children. To be effective, the election by such a member must be 
dated, signed, witnessed, and delivered to appropriate service 
officials, or postmarked not later than midnight on the day in which he 
completes 19 years of service. Such an election will become effective 
immediately upon subsequent retirement. The latest election, change, or 
revocation made in accordance with this subsection will, if otherwise 
valid, be the effective election, unless superseded by a change as 
provided in paragraph (b) of this section.
    (b) Except as provided in paragraph (c) of this section, a member 
who fails or declines to make an election before completion of 19 years 
of service may make an election after that time. However, unless the 
election is made at least 2 years prior to the date the member becomes 
entitled to receive retired pay, it will not be effective. The same 
applies to subsequent changes or revocations made prior to retirement.
    (c) If an election, revocation, or change was made prior to August 
13, 1968, the 19-year and 2-year provisions are automatically in effect 
on August 13, 1968, for members who were not entitled to retired pay on 
such date, unless the member applies under Sec. 48.604(d) to remain 
under the provisions of the law prior to August 13, 1968. In this case 
the ``18 years of service'' and ``3 years prior to receipt of retired 
pay'' rules will apply.
    (d) A member retired for physical disability on or after November 1, 
1968 who is awarded retired pay prior to completion of 19 years of 
service may make an election which is subject to the restrictions set 
forth in Sec. 48.507. The election by such member shall be made before 
the first day for which he is entitled to retired pay. Elections made 
under this paragraph prior to November 1, 1968, must be made by the 
member retiring for physical disability prior to completing 18 years.
    (e) If, because of military operations, a member is assigned to an 
isolated station, or is missing, interned in a neutral country, captured 
by a hostile force, or beleaguered or besieged, and for that reason is 
unable to make an election before completing 19 years of service, he may 
make the election within 1 year after he ceases to be assigned to that 
station or returns to the jurisdiction of his service as the case may 
be, and such election shall become effective immediately upon subsequent 
retirement.
    (f) A member to whom retired pay is granted retroactively, and who 
is otherwise eligible to make an election, may make the election within 
90 days after receiving notice that such pay has been granted him.

[[Page 231]]

    (g) Whenever a member is determined to be mentally incompetent by 
medical officers of the uniformed services or of the Veterans 
Administration, or is adjudged mentally incompetent by a court of 
competent jurisdiction and because of such mental incompetency is 
incapable of making any election within the time limitations prescribed 
by the Plan, the Secretary of the Department concerned may make the 
appropriate election on behalf of such member upon request of the 
spouse, or if there be no spouse, by or on behalf of the child or 
children of such member. If such member is subsequently determined to be 
mentally competent by the Veterans Administration or a court of 
competent jurisdiction, he may, within 180 days after such determination 
or judgment, change or revoke the election made on his behalf. In such a 
case, the change or revocation will be effective on the date of the 
member's request for such change or revocation. Deductions previously 
made shall not be refunded.
    (h) All elections on file on August 13, 1968, for members not 
entitled to receive retired pay shall be subject to the provisions of 
this section unless the member makes the application specified in 
Sec. 48.604(d).
    (i) A person who was a former member of the armed forces on November 
1, 1953, and who is granted retired pay after that date, may, at the 
time he is granted that pay, make an election as provided in 
Sec. 48.201.



Sec. 48.204  Change or revocation of election.

    (a) A change of election is a change in the amount of the annuity or 
annuities under any option, or a change in any option or options 
selected. A revocation is a cancellation of a previous election and 
constitutes a withdrawal from coverage under the Plan.
    (b) A member may change or revoke his election as often as he 
desires prior to the completion of 19 years of service. Such a change or 
revocation must be dated, signed, witnessed, and delivered to 
appropriate service officials, or postmarked not later than midnight on 
the day in which the member completes 19 years of service. The latest 
election, change, or revocation which is submitted in accordance with 
this subsection will be effective at retirement.
    (c) A member who desires to make an election or change or revoke his 
election after he has completed 19 years of service may do so prior to 
his retirement. However, such an election, change or revocation will be 
effective only if at least 2 years elapse between the date of the 
election, change, or revocation and the date of eligibility to receive 
retired pay.
    (d) A revocation will not prohibit the filing of a new election at a 
later date which will become valid under applicable validation 
provisions.
    (e) A member may, on or after November 1, 1968, at any time prior to 
his retirement, change or revoke his election (provided the change does 
not increase the amount of the annuity elected) to reflect a change in 
the marital or dependency status of the member of his family caused by 
death, divorce, annulment, remarriage, or acquisition of a child, if 
such change or revocation is made within 2 years of such change in 
status.
    (f) Notification of a change in family status is not a change of 
election.
    (g) All changes and revocations on file on August 13, 1968, for 
members not entitled to retired pay shall be subject to the provisions 
of this section unless the member makes the application specified in 
Sec. 48.604(d).



Sec. 48.205  Election form.

    The form for making election after October 31, 1968, is prescribed 
as Election of Options, Retired Serviceman's Family Protection Plan, DD 
Form 1688. \1\ It will be submitted as directed herein. All copies will 
be signed, and any otherwise complete, signed copy, when properly 
submitted, may be used to substantiate the fact of election, 
modification, revocation, or change in family status.
---------------------------------------------------------------------------

    \1\ Filed as part of the original document. Copies may be obtained 
from Military Personnel Office.
---------------------------------------------------------------------------



Sec. 48.206  Information regarding elections.

    (a) All members of the Reserve component who will have accumulated 
sufficient service to be eligible for retired

[[Page 232]]

pay at age 60, will be counseled on the Plan before reaching their 57th 
birth dates in order to insure that valid elections can be made prior to 
their 58th birth dates. An election, modification, or revocation 
submitted subsequent to attaining age 58 will be valid only if it is 
made and submitted at least 2 years prior to the first date for which 
retired pay is granted.
    (b) It is the responsibility of the department concerned to provide 
election forms and to promulgate information concerning the benefits of 
the Plan to all members so as to allow a timely election.
    (c) Members retiring for physical disability prior to the completion 
of 19 years of service will, prior to retirement, be counseled and 
furnished information concerning the operation of the Plan.



                 Subpart C--Designation of Beneficiaries



Sec. 48.301  Designation.

    (a) All legal beneficiaries described in Sec. 48.102 must be named 
at the date of retirement pursuant to the option elected. Although a 
member without dependents may make an election, it will not be effective 
unless he has eligible dependents at the time of his retirement.
    (b) When a change in family status occurs prior to retirement which 
would effect a change as provided in Sec. 48.204(e), new DD Form 
1688,1 Election of Options, Retired Servicemen's Family 
Protection Plan, should be filed to evidence such change.
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 48.205.
---------------------------------------------------------------------------



Sec. 48.302  Substantiating evidence regarding dependency and age of dependents.

    At the time of submitting the election, or prior to retirement, the 
member must indicate his wife's and youngest child birth date as 
applicable to the option elected. At or before the time of his 
retirement, he must submit proof of final dissolution of prior 
marriages, if any, both for himself and his spouse. The age of the 
dependents must be substantiated by a birth certificate or other 
competent evidence. The birth date of a member must be verified by his 
service record. All required substantiating evidence must be at the 
disbursing office which would normally pay the member retired pay or 
retainer pay immediately following retirement so as to permit the 
establishment of accurate pay accounts and to prevent the creation of 
indebtedness or overpayments.



Sec. 48.303  Condition affecting entitlement of widow or widower.

    A member may have a different lawful spouse at the time of 
retirement from the lawful spouse he had at the time of election. The 
lawful spouse at the time of retirement is the spouse eligible for an 
annuity at the time of member's death. Divorce of the member will remove 
the former spouse as a prospective annuitant.



                   Subpart D--Reduction of Retired Pay



Sec. 48.401  Computation of reduction.

    (a) The reduction to be made in the retired pay of a member who has 
made an election shall be computed by the uniformed service concerned in 
each individual case, based upon tables of factors prepared by the Board 
of Actuaries. The computation shall be based upon the applicable table 
in effect on the date of retirement.
    (b) An adjustment may be made in the reduction of retired pay upon 
the finding of an administrative error or a mistake of fact (see 
Sec. 48.603).
    (c) If a member elects to be covered by option 3, and on the date he 
is awarded retired pay has no children eligible to receive the annuity, 
or has only a child or children aged 18-22 (other than a child described 
in Sec. 48.102(e)(4) and elects, at retirement, that such child or 
children shall not be considered to be eligible beneficiaries, he shall 
have his costs computed as though he had elected option 1. If he elects 
option 3, and on the date he is awarded retired pay has no wife eligible 
for the annuity, he shall have his costs computed as though he had 
elected option 2.
    (d) If a member elects option 3, and after he becomes entitled to 
retired pay, there is no eligible spouse because

[[Page 233]]

of death or divorce, upon the retired member's application, no 
deductions from his retired pay shall be made after the last day of the 
month in which there ceases to be an eligible spouse. Children otherwise 
eligible will continue to be eligible for the annuity in event of the 
member's death. No amounts by which the member's retired pay is reduced 
before that date may be refunded to or credited on behalf of that 
person.
    (e) The amount of reduction in retired pay and the annuity payable 
established for each individual at the time of his retirement shall 
remain unaltered except as provided in Sec. 48.203(g), paragraphs (b) 
and (d) of this section, and Sec. 48.406, regardless of future pay 
increases or decreases.



Sec. 48.402  Effective date of reduction.

    The effective date of reduction in retired pay will be the effective 
date of retirement with pay. The reduction in retired pay will be 
terminated on the date the member ceases to be entitled to retired pay 
or on the first day of the month following that in which there is no 
eligible beneficiary (for exception to this rule see Sec. 48.604).



Sec. 48.403  Payment of nonwithheld reduction of retired pay.

    (a) A member of a uniformed service who is entitled to retired pay 
and has made an election shall, during any period in which he is not 
receiving retired pay (including periods of active duty), deposit the 
amount which would have been withheld from his retired pay had he been 
receiving that pay.
    (b) Such deposit will be payable to Treasurer of the United States 
and shall be forwarded monthly to the disbursing office which would 
normally pay the member his retired pay.
    (c) The disbursing office will in all cases inform the member of the 
amount to be deposited and when such deposits are to be made.
    (d) In the event deposits are not made within 30 days of the due 
date, the disbursing office will inform the member concerned that he is 
delinquent from such due date and thereafter his designated 
beneficiaries will not be eligible for the annuity provided under the 
Plan until the arrears have been paid. The notification of delinquency 
will advise the member that 15 additional days have been granted to him 
in which to remit his deposit, and that if the arrears are not deposited 
within that period, the member will be charged interest to include the 
first day of delinquency. In no case will the expiration date of the 15 
days exceed a date later than 45 days from the date the deposit was due. 
The interest will be computed monthly and the rate will be that used in 
computing the cost tables in effect on the date of the member's 
retirement. If such member later becomes in receipt of retired pay, any 
arrears with compound interest will be withheld.



Sec. 48.404  Ages to be used.

    Ages to be used for calculating reductions of retired pay will be 
the ages of the member and his eligible dependents on their nearest 
birth dates as of the date of the member's retirement.



Sec. 48.405  Action upon removal from temporary disability retired list.

    (a) Any member on the temporary disability retired list established 
pursuant to title 10, United States Code, chapter 61, who has elected to 
receive reduced retired pay in order to provide one or more of the 
annuities specified in the Plan, and who is subsequently removed from 
the list due to any reason other than permanent retirement, shall have 
refunded to him a sum which represents the difference between the amount 
by which his retired pay has been reduced and the cost of an amount of 
term insurance which is equal to the protection provided his dependents 
during the period he was on the temporary disability retired list.
    (b) If the member concerned is returned to active duty, his election 
as previously made will continue or he may change or revoke the election 
as provided in Sec. 48.204.
    (c) Time creditable for the purpose of the two year interval 
required to make a change, revocation or new election valid includes 
service before, during, and after temporary disability retirement. (See 
Secs. 48.203 and 48.204 and Comptroller Decision B-144158, Dec. 23, 
1960.) Active duty after removal from a

[[Page 234]]

temporary disability retired list is a necessity in such a case.



Sec. 48.406  Withdrawal and reduction of percentage or amount of participation.

    A retired member who is participating in the Plan may revoke his 
election and withdraw from participation, or he may reduce the amount of 
the survivor annuity; however, an approved withdrawal or reduction will 
not be effective earlier than the first day of the seventh month 
beginning after the date his application is received by the Finance 
Center controlling his pay record. (For special rules covering 
participating members retired before Aug. 13, 1968, without option 4, 
see Sec. 48.604.) No application for reduction will be approved which 
requests a change in options. A request to reduce an annuity or to 
withdraw from the Plan is irrevocable, and a retired member who 
withdraws may never again participate in the Plan. Approval of a request 
for a reduction will not be made when such reduction results in an 
annuity of less than 12\1/2\ per centum of the member's retired pay or 
less than a $25 monthly annuity. The new cost, after such reduction in 
survivor annuity, will be computed from the applicable cost table at the 
time of retirement. No amounts by which a member's retired pay is 
reduced may be refunded to, or credited on behalf of, the member by 
virtue of an application made by him under this section.



                           Subpart E--Annuity



Sec. 48.501  General information.

    Except as provided in Sec. 48.506(a), no annuity payable under the 
Plan shall be assignable, or subject to execution, levy, attachment, 
garnishment, or other legal process. Annuities payable under this Plan 
shall be in addition to any pensions or other payments to which the 
beneficiaries may now or hereafter be entitled under other provisions of 
law (except as provided in Sec. 48.507), and may not be considered as 
income under any law administered by the Veterans Administration, except 
for the purpose of title 38 U.S. Code, section 415(g) and chapter 15.



Sec. 48.502  Effective date of annuity.

    All annuities payable under this Plan except those payable to 
beneficiaries described in Sec. 48.102(e)(5) shall accrue from the first 
day of the month in which the retired member dies and shall be due and 
payable not later than the 15th day of each month following that month 
and in equal monthly installments thereafter, except that no annuity 
shall accrue or be paid for the month in which entitlement to that 
annuity terminates.



Sec. 48.503  Claims for annuity payments.

    Upon official notification of the death of a retired member who has 
elected under the Plan, the department concerned shall forward to the 
eligible surviving beneficiaries the necessary information and forms (DD 
Form 768. Application for Annuity Under Retired Serviceman's Family 
Protection Plan) for making application for annuity payments. Such 
information shall include the place to which the application should be 
forwarded and to which questions regarding annuity payments should be 
addressed.



Sec. 48.504  Payment to children.

    (a) Annuities for a child or children will be paid to the child's 
guardian, or if there is no guardian, to the person(s) who has care, 
custody, and control of the child or children.
    (b) Annuities payable to or on behalf of an eligible child as 
defined in Sec. 48.102(e)(5) accrue as of the first day of the month in 
which--
    (1) The member (upon whose retired pay the annuity is based) dies if 
the eligible child's 18th birthday occurs in the same or a preceding 
month, or
    (2) The 18th birthday of an eligible child occurs if the member 
(upon whose retired pay the annuity is based) died in a preceding month, 
or
    (3) A child first becomes (or again becomes) eligible, if that 
eligible child's 18th birthday and the death of the member (upon whose 
retired pay the annuity is based) both occurred in a preceding month or 
months. An eligible child under this paragraph might become ineligible 
at age 18 and again become eligible by furnishing proof of pursuit of a 
full time course of study or training as enumerated in 
Sec. 48.102(e)(5).

[[Page 235]]



Sec. 48.505  Establishing eligibility of annuitants.

    (a) Eligibility for the annuity will be established by such evidence 
as may be required by the department concerned.
    (b) If a child as defined in Sec. 48.102(e)(4) is a designated 
annuitant, the department concerned shall require proof that the 
incapacity for self-support existed prior to the child's reaching age 
18. Proof that continued incapacitation exists will be required every 2 
years after the child passes the age of 18 years, except in a case where 
medical prognosis indicates recovery is impossible.
    (c) If a child as defined in Sec. 48.102(e)(5) is a designated 
annuitant, as specified in Sec. 48.504(b), the department concerned 
shall require proof from the institution at least semiannually that the 
child is pursuing a full-time course of training as prescribed. For the 
purpose of proving eligibility, a child is considered to be pursuing a 
full-time course of study or training during an interval between school 
periods that does not exceed 150 days if he has demonstrated to the 
satisfaction of the department concerned that he has a bona fide 
intention of commencing, resuming, or continuing to pursue a full-time 
course of study or training in a recognized educational institution 
immediately after that interval.



Sec. 48.506  Recovery of erroneous annuity payments.

    (a) The Secretary of the Department concerned is empowered to use 
any means provided by law to recover amounts of annuities erroneously 
paid to any individual under the Plan. He may authorize such recovery by 
adjustment in subsequent payments to which the individual is entitled.
    (b) There need be no recovery when in the judgment of the Secretary 
of the Department concerned and the Comptroller General of the United 
States, the individual to whom the erroneous payment was made is without 
fault and recovery would be contrary to the purpose of the Plan or would 
be against equity and good conscience.



Sec. 48.507  Restriction on participation.

    (a) If a person who has made an election under the Plan retires with 
a physical disability before the completion of 19 years of service and 
then dies in retirement, his widow and eligible children can receive 
monthly survivor annuities only if they are not eligible for Dependency 
and Indemnity Compensation payments from the Veterans Administration. If 
either the widow or children are eligible for dependency and indemnity 
compensation payments, then payment of annuities under the Plan may not 
be made to any member of the family. If the retired member's death was 
not service connected and his widow or children are not eligible for 
payments from the Veterans Administration, they may receive the provided 
annuity payments under the Plan.
    (b) If the beneficiaries on whose behalf the election was made are 
restricted as in paragraph (a) of this section, from receiving 
annuities, the amounts withheld from the elector's retired pay as a 
result of the election will be refunded to the beneficiaries, less the 
amount of any annuity paid, and without interest.
    (c) Upon notification of the death of the member in such a case, the 
department concerned will take the following actions:
    (1) Notify the Central Office of the Veterans Administration of the 
death of the member and request that the department concerned be advised 
if an award is made under chapter 11 or 13, title 38 U.S. Code.
    (2) Request the Central Office of the Veterans Administration to 
forward to the eligible widow and/or children an application form for 
survivor benefits under chapter 11 or 13, title 38 U.S. Code, with 
instructions for completion and submission.



Sec. 48.508  Certain 100 percent disability retirement.

    An election filed on or after August 13, 1968 is not effective if 
the member dies within 30 days following retirement from a disability of 
100 per centum (under the standard schedule of rating disabilities in 
use by the Veterans Administration) for which he was retired under 
chapter 61, title 10 U.S. Code, unless--
    (a) Such disability was the result of injury or disease received in 
line of

[[Page 236]]

duty as a direct result of armed conflict, or
    (b) His widow or children are not entitled to dependency and 
indemnity compensation under chapter 13, title 38 U.S. Code.



                        Subpart F--Miscellaneous



Sec. 48.601  Annual report.

    Information and data for the preparation of the annual report of the 
Board of Actuaries will be compiled by the Office of the Secretary of 
Defense after promulgation of appropriate instructions to each of the 
uniformed services. These instructions will be in consonance with 
Executive Order 10499 directing the Secretary of Defense to administer 
the provisions of the law.



Sec. 48.602  Organization.

    (a) The Joint Board for the Retired Serviceman's Family Protection 
Plan shall consist of a principal and alternate member for each of the 
uniformed services appointed by the Department Secretary concerned. 
Alternate members will be authorized to act in the absence of the 
principal. The Board shall meet on call of the Chairman. A quorum shall 
consist of representatives of at least four of the participating 
services.
    (b) The Board shall establish procedures for the orderly conduct of 
business to be approved by the Assistant Secretary of Defense (Manpower 
and Reserve Affairs).
    (c) The duties of the Board will include but not be limited to the 
following:
    (1) Making recommendations to the Secretary of Defense for:
    (i) Changes to the Executive order delegating to him functions 
conferred on the President by law,
    (ii) Changes to these regulations,
    (iii) Changes to the law, and
    (iv) Measures to insure uniform operating policies.
    (2) Promulgating tables of annuity costs as prescribed by the Board 
of Actuaries.
    (3) Promulgating cost of term insurance as required in Sec. 48.405.
    (d) The Chairmanship of the Joint Board will be designated by the 
Assistant Secretary of Defense (Manpower and Reserve Affairs).



Sec. 48.603  Correction of administrative deficiencies.

    (a) The Secretary of the Department concerned may correct any 
election or any change or revocation of an election when he considers it 
necessary to correct an administrative error. Information on such 
corrections shall be compiled by each department for inclusion in the 
report prescribed by Sec. 48.601.
    (b) Except when procured by fraud, a correction under the section is 
final and conclusive on all officers of the United States.
    (c) Information on all corrections to elections under this Plan 
which are made under title 10, section 1552, United States Code, shall 
be compiled and this information forwarded to the Board of Actuaries for 
an actuarial analysis.



Sec. 48.604  Transition and protective clauses.

    (a) A retired member who is participating in the Plan without 
inclusion of former option 4, which provided for restoration of retired 
pay when no eligible beneficiary remained in his election, may before 
September 1, 1969, elect to have that option included in his election. 
The election to include such option 4 becomes effective on the first day 
of the month following the month in which that election was made. The 
retired member must on or before the effective date agree to pay to the 
Treasury both the total additional amount to cover the option had it 
been effective when he retired, and the interest which would have 
accrued on the additional amount up to the effective date of the new 
option 4. No such additional amount (except interest) shall accrue for 
months after the first month for which the individual had no eligible 
beneficiary. However, if undue hardship or financial burden would 
result, payments may be made in from 2 to 12 monthly installments when 
the monthly amount involved is $25 or less, or in from 2 to 36 
installments when the monthly amounts involved exceed $25. No amounts by 
which a member's retired pay was reduced may be refunded to, or credited 
on behalf of, the retired

[[Page 237]]

member by virtue of an application made by him under this section. A 
retired member who does not make the additional election provided under 
this section within the time limits will not be allowed to reduce an 
annuity or withdraw from participation in the Plan as provided by 
Sec. 48.406.
    (b) Members who have elected and are not yet retired will 
automatically participate under the provisions of Sec. 48.201.
    (c) Elections in effect on August 13, 1968, will remain under the 
cost tables applicable on the date of the member's retirement.
    (d) Any member who has filed an election, modification, or 
revocation prior to August 13, 1968, may before September 1, 1969, 
submit a written application to the Secretary concerned requesting that 
such election, modification, or revocation remain under the time-of-
election provisions of the law applicable on the date it was filed.



PART 51--THE DEPARTMENT OF DEFENSE MILITARY EQUAL OPPORTUNITY PROGRAM--Table of Contents




Sec.
51.1  Purpose.
51.2  Applicability and scope.
51.3  Definitions.
51.4  Policy.
51.5  Responsibilities.
51.6  Information requirements.

Appendix A to Part 51--Military Equal Opportunity Reporting Requirements
Appendix B to Part 51--Organizations and Functions

    Authority: Pub. L. 92-261, sec. 301, 80 Stat. 379 (5 U.S.C. 301, 10 
U.S.C. 133).

    Source: 54 FR 46227, Nov. 2, 1989, unless otherwise noted.



Sec. 51.1  Purpose.

    This part:
    (a) Regulates the Department of Defense Military Equal Opportunity 
(EO) Program and assigns responsibilities for ensuring DoD-wide 
compliance with the broad program objectives outlined in DoD Human Goals 
Charter, March 21, 1988.
    (b) Provides for education and training in EO and human relations.
    (c) Prescribes the functions of the Defense Equal Opportunity 
Council (DEOC), the Defense Equal Opportunity Management Institute 
(DEOMI), and the Board of Visitors (BOV) to DEOMI.



Sec. 51.2  Applicability and scope.

    This part:
    (a) Applies to all military members of the Office of the Secretary 
of Defense (OSD), the Military Departments (including their National 
Guard and Reserve components), the Joint Staff, the Unified and 
Specified Commands, the Defense Agencies, and the DoD Field Activities 
(hereafter referred to collectively as ``DoD Components''). The term 
``Military Services,'' as used herein, refers to the Army, Navy, Air 
Force, and Marine Corps.
    (b) Applies to DoD contracted organizations that provide services to 
military personnel and their families.
    (c) Does not apply to civilian personnel, except as noted in 
paragraph (b) of this section.



Sec. 51.3  Definitions.

    Affirmative Action. Methods used to achieve the objectives of the EO 
program. Processes, activities, and systems designed to identify, 
eliminate, prevent, and work to overcome the effects of discriminatory 
treatment as it affects the upward mobility and quality of life for DoD 
personnel.
    Discrimination. Illegal treatment of a person or group based on 
handicap, race, color, national origin, age, religion, or gender.
    DoD Military Equal Opportunity (EO) Program. The DoD-wide military 
program of equal opportunity that is accomplished through efforts by DoD 
Components. It provides an environment in which every member of the 
total force is ensured an opportunity to rise to as high a level of 
responsibility as possible in the military profession, dependent only on 
merit, fitness, and capability.
    Equal Opportunity (EO). The right of all persons to participate in 
and benefit from programs and activities for which they are qualified. 
These programs and activities shall be free from social, personal, or 
institutional barriers that prevent people from rising to as high a

[[Page 238]]

level of responsibility as possible. Persons shall be evaluated only on 
individual merit, fitness, and capability, regardless of race, color, 
gender, national origin, age, or handicap except as prescribed by 
statute, or DoD/Service policy.
    Ethnic Group. A segment of the population that possesses common 
characteristics and a cultural heritage based to some degree on the 
following:
    (a) Common geographic origin;
    (b) Race;
    (c) Language or dialect;
    (d) Religious faith or faiths;
    (e) Shared traditions, values, or symbols;
    (f) Literature, folklore, or music;
    (g) An internal sense of distinctiveness; and/or
    (h) An external perception of distinctiveness.
    Ethnic and Racial Categories. The basic racial and ethnic categories 
for DoD reporting are defined as follows:
    (a) American Indian or Alaskan Native. A person having origins in 
the original peoples of North America.
    (b) Asian or Pacific Islander. A person having origins in any of the 
original peoples of the Far East, Southeast Asia, the Indian 
subcontinent, or the Pacific Islands. This area includes China, India, 
Japan, Korea, the Philippine Islands, and Samoa.
    (c) Black (Not of Hispanic Origin). A person having origins in any 
of the original peoples of Africa.
    (d) Hispanic. A person having origins in any of the original peoples 
of Mexico, Puerto Rico, Cuba, or Central or South America, or of other 
Spanish cultures, regardless of race.
    (e) White (Not of Hispanic Origin). A person having origins in any 
of the original peoples of Europe, North Africa, or the Middle East.
    National origin. An individual's or ancestor's place of origin. Also 
applies to a person who has the physical, cultural, or linguistic 
characteristics of a national group.
    Race. A division of humans identified by the possession of traits 
that are transmissible by descent and that are sufficient to 
characterize as a distinctive human type.
    Religion. A personal set or institutionalized system of attitudes, 
moral or ethical beliefs, and practices that are held with the strength 
of traditional religious views, characterized by ardor and faith, and 
generally evidenced through specific religious observances.
    Sexual Harassment. A form of sex discrimination that involves 
unwelcomed sexual advances, requests for sexual favors, and other verbal 
or physical conduct of a sexual nature when:
    (a) Submission to or rejection of such conduct is made either 
explicitly or implicitly a term or condition of a person's job, pay, or 
career, or
    (b) Submission to or rejection of such conduct by a person is used 
as a basis for career or employment decisions affecting that person, or
    (c) Such conduct interferes with an individual's performance or 
creates an intimidating, hostile, or offensive environment.
    Any person in a supervisory or command position who uses or condones 
implicit or explicit sexual behavior to control, influence, or affect 
the career, pay, or job of a military member or civilian employee is 
engaging in sexual harassment. Similarly, any military member or 
civilian employee who makes deliberate or repeated unwelcomed verbal 
comments, gestures, or physical contact of a sexual nature is also 
engaging in sexual harassment.



Sec. 51.4  Policy.

    It is DoD policy to:
    (a) Support the military EO program as an integral element in total 
force readiness, as defined in the Secretary of Defense Memorandum and 
enforce at all levels of activity the EO provisions of this part in 
developing operating EO policies and programs.
    (b) Use the chain of command to promote, support, and enforce the 
military EO program. The chain of command is the primary and preferred 
channel for correcting discriminatory practices and for ensuring that 
human relations and EO matters are enacted.
    (c) Ensure the Military Services (to include the Reserve components) 
maintain military EO and affirmative action programs. Discrimination 
that adversely affects persons or groups based on race, color, religion, 
gender, age, or

[[Page 239]]

national origin, and that is not supported legally, is contrary to good 
order and discipline, and is counterproductive to combat readiness and 
mission accomplishment. Discrimination of this nature shall not be 
condoned or tolerated.
    (d) Provide education and training in EO and human relations at 
installation and fleet unit commands, Military Service accession points, 
and throughout the professional military education (PME) system, as part 
of the overall effort to achieve equal opportunity.
    (e) Provide for an environment that is free from sexual harassment 
by eliminating this form of discrimination in the Department of Defense.
    (f) Ensure that all on-base activities and, to the extent of the 
ability of DoD, any off-base activities available to military personnel 
are open to all military personnel and their authorized family members 
regardless of race, color, religion, age, physical or mental handicap, 
gender, or national origin, as called for by the DoD Human Goals 
Charter.
    (1) Organizations or activities that do not meet this requirement 
shall be denied the use of military facilities and resources in 
accordance with 32 CFR part 237. This policy applies equally to those 
organizations that may discriminate based on the content of their 
constitutions, bylaws, rules or regulations, as well as to those which, 
in the judgment of the responsible commander(s), are engaging in de 
facto discrimination regardless of the content of their constitutions, 
bylaws, rules or regulations.
    (2) Organizations that use on-base facilities, whether on a 
reimbursable basis or otherwise, must satisfy the responsible area or 
activity commander that they do not discriminate through their actual 
membership practices or in any of their activities.
    (g) Oppose discrimination in off-base housing directed against 
military personnel and their authorized family members. Each commander 
shall take actions to overcome such discrimination and to impose off-
limits sanctions in housing cases, as required by 32 CFR part 301.
    (h) Impose, as required, the off-limits sanction according to the 
Armed Forces Disciplinary Control Board as stated in the Joint 
Regulation, in cases of discrimination involving places of public 
accommodations outside military installations.



Sec. 51.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Force Management and 
Personnel) (ASD(FM&P)) shall:
    (1) Represent and advise the Secretary of Defense in military EO 
matters consistent with 32 CFR part 384.
    (2) Chair the Defense Equal Opportunity Council.
    (3) Provide guidance on developing all DoD programs to ensure equal 
opportunity for military personnel in the total force.
    (4) Develop, execute, and monitor the effectiveness of military EO 
policies in support of national security objectives.
    (5) Ensure that DoD Components fulfill the requirements of this 
part.
    (6) Provide policy direction to DEOMI and select the Commandant of 
DEOMI from Military Service nominations.
    (7) Establish categories and monitor specific goals to be included 
in the affirmative action programs and annual military EO assessments of 
each DoD Component.
    (8) Review and act on (or refer to appropriate Military Service) all 
complaints of discrimination arising under this part (to include sexual 
harassment) referred to the Secretary of Defense.
    (9) Ensure fair, impartial and timely investigation, resolution, and 
follow-up of all complaints of discrimination arising under this part.
    (10) Establish a program to recognize individuals and organizations 
for outstanding achievement in one or more of the major EO areas covered 
by this part.
    (b) The Heads of DoD Components shall be responsible for equal 
opportunity within their respective jurisdictions (to include their 
Reserve components) and shall:
    (1) Ensure that all DoD EO policies and programs are understood and 
executed at all levels of military command.
    (2) Establish affirmative action programs that identify and resolve 
EO

[[Page 240]]

problems through formulating, maintaining, and reviewing affirmative 
action plans (AAPs) with established objectives and milestones and 
including accountability in personnel management consistent with DoD 
Instruction 1350.3.\1\
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, Attn: Code 1062, 5801 Tabor Avenue, 
Philadelphia, PA 19120.
---------------------------------------------------------------------------

    (3) Forward a fiscal year report to the ASD(FM&P) outlining the 
progress being made to achieve the established military EO objectives of 
the AAP. This report shall be due each year on February 1, and is 
described further in DoD Instruction 1350.2.
    (4) Establish policies that include specific actions to be taken 
against any individual who commits an act of discrimination, as defined 
in Sec. 51.3.
    (5) Rewrite documents and change practices that discriminate against 
military personnel based on race, religion, color, gender, or national 
origin. This requirement does not apply to those Military Service 
documents that implement statutes or DoD/Service policy requiring 
different treatment of military personnel based on age or gender.
    (6) Establish policies and procedures to prevent sexual harassment 
and to ensure that appropriate action is taken against individuals who 
commit sexual harassment offenses, in accordance with the Secretary of 
Defense Memorandums.
    (7) Ensure that all military personnel, including command-selectees 
and flag and general officers, receive training in equal opportunity, 
human relations, and prevention of sexual harassment on a recurring 
basis, and at all levels of PME.
    (8) Establish and fill sufficient full-time staff positions and 
allocate sufficient resources to conduct all EO programs. Equal 
opportunity staff personnel shall be placed at a level that enables them 
to communicate effectively the goals and objectives of the program and 
obtain the understanding, support, and commitment of the organization's 
leaders.
    (9) Ensure that all discrimination complaints are investigated in a 
fair, impartial, and prompt manner.
    (10) Ensure that consideration of EO program support is included in 
the instructions that guide rating officials in preparing efficiency 
reports and/or evaluations on their subordinates.
    (11) Develop management information and reporting systems to 
determine the progress for each AAP goal consistent with DoD Instruction 
1350.3.
    (12) Establish EO awards programs to recognize individuals and 
organizational units for outstanding achievement in any of the EO areas 
covered by this part or Military Service-unique programs.



Sec. 51.6  Information requirements.

    An annual report is required and is assigned Report Control Symbol 
DD-FM&P(A)1760. Reporting requirements are contained in appendix A to 
this part and further amplified in DoD Instruction 1350.3.

Appendix A to Part 51--Military Equal Opportunity Reporting Requirements

    Each DoD Component shall submit an annual Military Equal Opportunity 
Assessment (MEOA) for the period ending September 30 to the ASD(FM&P) no 
later than February 1 of the following year. The report shall include 
the following information:
    A. An executive summary, providing an overall assessment of each DoD 
Component's AAPs and EO Programs.
    B. An assessment of each affirmative action in the following 10 
categories shall be made an enclosure to the report. The assessment in 
each category should include quantitative data in the basic race/ethnic 
classifications for officers and enlisted personnel broken down by 
gender.

    1. Recruiting/Accessions
    2. Composition
    3. Promotions
    4. Professional Military Education (PME)
    5. Separations
    6. Augmentation/Retention
    7. Assignments
    8. Discrimination/Sexual Harassment Complaints
    9. Utilization of Skills
    10. Discipline

    C. Requirements are further explained in DoD Instruction 1350.3.

[[Page 241]]

           Appendix B to Part 51--Organizations and Functions

    1. The Defense Equal Opportunity Council (DEOC) shall:
    a. Coordinate policy and review the military and civilian EO 
programs.
    b. Monitor progress of program elements.
    c. Advise the Secretary of Defense on policies for EO matters.
    d. Assist in developing policy guidance for education and training 
in EO and human relations for DoD personnel.
    2. The DEOC is Chaired by the Assistant Secretary of Defense/Force 
Management and Personnel (ASD(FM&P)). Other members are the Assistant 
Secretary of Defense for Reserve Affairs (ASD(RA)); the Assistant 
Secretary of the Air Force for Manpower and Reserve Affairs 
(ASAF(M&RA)); the Assistant Secretary of the Army for Manpower and 
Reserve Affairs (ASA(MRA)); the Assistant Secretary of the Navy for 
Manpower and Reserve Affairs (ASN(M&RA)); and the Director of 
Administration and Management, Office of the Secretary of Defense (DA&M, 
OSD).
    3. DEOMI is a DoD Field Activity Operating Under the Supervision, 
Direction, and Policy Guidance of the ASD(FM&P). Located as a tenant on 
an established military installation, DEOMI shall be supported 
administratively and logistically by the Military Department responsible 
for the host installation.
    a. The mission of DEOMI is to enhance combat and/or operational 
readiness through improved leadership by functioning as the DoD center 
of excellence in all facets of military EO and human relations education 
and training to include the following:
    (1) Providing primary training for all DoD military and civilian 
personnel assigned to military EO billets (to include the U.S. Coast 
Guard), and staff officers who directly manage EO and human relations 
programs.
    (2) Performing EO and human relations research in conjunction with 
the Military Services and acting as a clearing house to monitor and 
disseminate research findings on EO and human relations.
    (3) Providing assistance or consultation services in DoD 
organizations in developing specific curricula and training for EO and 
human relations education, and particular training for the PME systems 
within the Military Services; and serving in an advisory capacity to 
other Agencies in education, industry, and the private sector, as 
determined by the Commandant.
    (4) Disseminating educational training materials to assist EO 
advisors and human relations instructors in remaining current in the EO 
subject area and in otherwise developing professionally.
    (5) Performing special research-related projects in support of the 
DEOC.
    (6) Operating and administering the Defense EO Electronic Bulletin 
Board to support EO advisors and specialists throughout the Military 
Services.
    (7) Serving as a focal point and depository for data and research on 
the EO climate and sexual harassment in the Military Services.
    b. The following applies to appointments to DEOMI:
    (1) The Commandant shall be appointed by the ASD(FM&P). This 
position shall rotate among representatives nominated by the Departments 
of the Army, Navy, and Air Force.
    (2) The ASD(FM&P) shall establish criteria for assigning officers 
and enlisted personnel from the Military Departments, including the 
Coast Guard, National Guard, and Reserves to faculty and staff positions 
at DEOMI.
    4. The DEOMI BOV is an Advisory Body to the ASD(FM&P). The Board is 
established by charter and serves as an external source of expertise to 
ensure periodic review of the objectives, policies, and operations of 
DEOMI.



PART 53--WEARING OF THE UNIFORM--Table of Contents




Sec.
53.1  Purpose.
53.2  Policy.

    Authority: 5 U.S.C. 301, 10 U.S.C. 772.



Sec. 53.1  Purpose.

    This part prescribes limitations on wearing of the uniform by 
members of the Armed Forces, and establishes policy with respect to 
wearing of the uniform by former members of the Armed Forces.
[35 FR 1236, Jan. 30, 1970]



Sec. 53.2  Policy.

    (a) Members of the Armed Forces (including retired members and 
members of reserve components). The wearing of the uniform is prohibited 
under any of the following circumstances:
    (1) At any meeting or demonstration which is a function of, or 
sponsored by an organization, association, movement, group, or 
combination of persons which the Attorney General of the United States 
has designated, pursuant to E.O. 10450 as amended, as totalitarian, 
fascist, communist, or subversive, or as having adopted a policy of 
advocating or approving the commission of acts of force or violence to 
deny others their rights under The Constitution of the United States, or 
as seeking

[[Page 242]]

to alter the form of Government of the United States by unconstitutional 
means.
    (2) During or in connection with the furtherance of political 
activities, private employment or commercial interests, when an 
inference of official sponsorship for the activity or interest could be 
drawn.
    (3) Except when authorized by competent Service authority, when 
participating in activities such as public speeches, interviews, picket 
lines, marches, rallies or any public demonstrations (including those 
pertaining to civil rights), which may imply Service Sanction of the 
cause for which the demonstration or activity is conducted.
    (4) When wearing of the uniform would tend to bring discredit upon 
the Armed Forces.
    (5) When specifically prohibited by regulations of the department 
concerned.
    (b) Former members of the Armed Forces. (1) Unless qualified under 
another provision of this part or under the provisions of 10 U.S.C. 772, 
former members who served honorably during a declared or undeclared war 
and whose most recent service was terminated under honorable conditions 
may wear the uniform in the highest grade held during such war service 
only upon the following occasions and in the course of travel incidents 
thereto:
    (i) Military funerals, memorial services, weddings, and inaugurals.
    (ii) Parades on national or State holidays; or other parades or 
ceremonies of a patriotic character in which any active or reserve U.S. 
military unit is taking part.
    (2) Wearing of the uniform or any part thereof at any other time or 
for any other purpose is prohibited.
    (c) Medal of Honor holders. Persons who have been awarded the Medal 
of Honor may wear the uniform at their pleasure except under the 
circumstances set forth in paragraph (a) of this section.
[35 FR 1236, Jan. 30, 1970]



PART 54--ALLOTMENTS FOR CHILD AND SPOUSAL SUPPORT--Table of Contents




Sec.
54.1  Purpose.
54.2  Applicability and scope.
54.3  Definitions.
54.4  Policy.
54.5  Responsibilities.
54.6  Procedures.

    Authority: 15 U.S.C. 1673, 37 U.S.C. 101, 42 U.S.C. 665.

    Source: 51 FR 23755, July 1, 1986, unless otherwise noted.



Sec. 54.1  Purpose.

    Under section 65 of title 42, United States Code, this part provides 
policy on statutorily required child or child and spousal support 
allotments, assigns responsibilities, and prescribes procedures.



Sec. 54.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense 
(OSD) and the Military Departments. The term ``Military Services,'' as 
used herein, refers to the Army, Navy, Air Force, and Marine Corps.
    (b) Its provisions cover members of the Military Services on 
extended active duty. This does not include a member under a call or 
order to active duty for a period of less than 30 days.



Sec. 54.3  Definitions.

    (a) Authorized person. Any agent or attorney of any State having in 
effect a plan approved under part D of title IV of the Social Security 
Act (42 U.S.C. 651-664), who has the duty or authority to seek recovery 
of any amounts owed as child or child and spousal support (including, 
when authorized under the State plan, any official of a political 
subdivision); and the court that has authority to issue an order against 
a member for the support and maintenance of a child or any agent of such 
court.
    (b) Child support. Periodic payments for the support and maintenance 
of a child or children, subject to and in accordance with State or local 
law. This

[[Page 243]]

includes, but is not limited to, payments to provide for health care, 
education, recreation, and clothing or to meet other specific needs of 
such a child or children.
    (c) Designated official. The representative of the Military Service 
concerned who is authorized to receive and to process notices under this 
part. See Sec. 54.6(f) for a listing of designed officials.
    (d) Notice. A court order, letter, or similar documentation issued 
by an authorized person providing notification that a member has failed 
to make periodic support payments under a support order.
    (e) Spousal support. Periodic payments for the support and 
maintenance of a spouse or former spouse, in accordance with State and 
local law. It includes, but is not limited to, separate maintenance, 
alimony while litigation continues, and maintenance. Spousal support 
does not include any payment for tranfer of property or its value by an 
individual to his or her spouse or former spouse in compliance with any 
community property settlement, equitable distribution of property, or 
other division of property between spouses or former spouses.
    (f) Support order. Any order providing for child or child and 
spousal support issued by a Court of competent jurisdiction within any 
State, territory, or possession of the United States, including Indian 
tribal courts, or in accordance with administrative procedures 
established under State law that affords substantial due process and is 
subject to judicial review.



Sec. 54.4  Policy.

    The Department of Defense is obligated by 42 U.S.C. 665 to require 
child, or child and spousal, support allotments from the pay and 
allowances of a member who has failed to make periodic payments under a 
support order in a total amount equal to the support payable for 2 
months or longer. The member's allotment shall be established by the 
Secretary of the Military Department concerned, or the Secretary's 
designee, provided all requirements of this part have been met.



Sec. 54.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Comptroller) (ASD(C)) shall 
provide guidance, monitor compliance with this part, and have the 
authority to change or modify the procedures in Sec. 54.6.
    (b) The Secretaries of the Military Departments shall comply with 
this part.



Sec. 54.6  Procedures.

    (a) Notice to designated official. (1) An authorized person shall 
send to the designated official of the member's Military Service a 
signed notice that includes:
    (i) A statement that delinquent support payments equal or exceed the 
amount of support payable for 2 months under a support order, and a 
request that an allotment be initiated pursuant to 42 U.S.C. 665.
    (ii) A certified copy of the support order.
    (iii) The amount of the monthly support payment. Such amount may 
include arrearages, if a support order specifies the payment of such 
arrearages. The notice shall indicate how much of the amount payable 
shall be applied toward liquidation of the arrearages.
    (iv) A statement that delinquent support payments are more than 12 
weeks in arrears, if appropriate.
    (v) Sufficient information identifying the member to enable 
processing by the designated official. The following information is 
requested:
    (A) Full name;
    (B) Social Security Number;
    (C) Military Service (Army, Navy, Air Force, or Marine Corps).
    (vi) The full name and address of the allottee. The allottee shall 
be an authorized person, the authorized person's designee, or the 
recipient named in the support order.
    (vii) Any limitations on the duration of the support allotment.
    (viii) A certificate that the official sending the notice is an 
authorized person.
    (2) The notice shall be sent by mail or delivered in person to the 
appropriate designated official of the Military Service. The designated 
official

[[Page 244]]

shall note the date and time of receipt on the notice.
    (3) The notice is effective when it is received in the office of the 
designated official.
    (4) When the notice does not sufficiently identify the member, it 
shall be returned directly to the authorized person with an explanation 
of the deficiency. However, before the notice is returned, if there is 
sufficient time, an attempt shall be made to inform the authorized 
person who sent the notice that it will not be honored unless adequate 
information is supplied.
    (5) Upon receipt of effective notice of delinquent support payments, 
together with all required supplementary documents and information, the 
designated official shall identify the member from whom moneys are due 
and payable. Under Sec. 54.6(d), the allotment shall be established in 
the amount necessary to comply with the support order and to liquidate 
arrearages if provided by a support order when the maximum amount to be 
allotted under this provision, together with any other moneys withheld 
for support from the member, does not exceed:
    (i) Fifty percent of the member's disposable earnings for any month 
in which the member asserts by affidavit or other acceptable evidence 
that he or she is supporting a spouse, dependent child, or both, other 
than a party in the support order. When the member submits evidence, 
copies shall be sent to the authorized person, together with 
notification that the member's support claim shall be honored. If the 
support claim is contested by the authorized person, that authorized 
person may refer this matter to the appropriate court or other authority 
for resolution.
    (ii) Sixty percent of the member's disposable earnings for any month 
in which the member fails to assert by affidavit or other acceptable 
evidence that he or she is supporting a spouse, dependent child, or 
both.
    (iii) Regardless of the limitations above, an additional 5 percent 
of the member's disposable earnings shall be withheld when the notice 
states that the total amount of the member's support payments is 12 or 
more weeks in arrears.
    (b) Disposable Earnings. (1) In determining disposable earnings for 
a member assigned within the contiguous United States, include the 
following payments. For definitions of these items, see DoD 5000.12-M.
    (i) Basic pay (including Military Service academy cadet and 
midshipman pay).
    (ii) Basic allowance for quarters for members with dependents, and 
for members without dependents in grade E-7 or higher.
    (iii) Basic allowance for subsistence for commissioned and warrant 
officers.
    (iv) Special pay for physicians, dentists, optometrists, and 
veterinarians.
    (v) Submarine pay.
    (vi) Flying pay (all crew members).
    (vii) Diving pay.
    (viii) Proficiency pay or special duty assignment pay.
    (ix) Career sea pay.
    (2) To determine disposable earnings for a member assigned outside 
of the contiguous United States, the following shall supplement the 
payments listed in paragraph (b)(1) of this section:
    (i) Foreign duty pay.
    (ii) Special pay for duty subject to hostile fire (applies only to 
members permanently assigned in a designated area).
    (iii) Family separation allowances (only under certain type-II 
conditions).
    (iv) Special pay for overseas extensions
    (c) Calculations of disposable earnings shall exclude:
    (1) Amounts owed by the member to the United States.
    (2) Amounts mandatorily withheld for the U.S. Soldiers' and Airmen's 
Home.
    (3) Fines and forfeitures ordered by a court-martial or by a 
commanding officer.
    (4) Federal and State employment and income taxes withheld to the 
extent that the amount deducted is consistent with the member's tax 
liability.
    (5) Deductions for the Servicemen's Group Life Insurance coverage.
    (6) Advances of pay received by the member before receipt of notice 
(see paragraph (c)(1) of this section) that may be due and payable by 
the member

[[Page 245]]

at some future date. Requests for advances received after notice for a 
statutorily required support allotment shall be reduced by the amount of 
the statutorily required support allotment.
    (7) Other amounts required by law to be deducted.
    (d) Notice to member and member's Commanding Officer.
    (1) As soon as possible, but not later than 15 calendar days after 
the date of receipt of notice, the designated official shall send to the 
member, at his or her duty station, written notice:
    (i) That notice has been received from an authorized person, 
including a copy of the documents submitted.
    (ii) Of the maximum limitations provided in 15 U.S.C. 1673, with a 
request that the member submit supporting affidavits or other 
documentation necessary for determining the applicable percentage 
limitation.
    (iii) That the member may submit supporting affidavits or other 
documentation as evidence that the information contained in the notice 
is in error.
    (iv) That by submitting supporting affidavits or other necessary 
documentation, the member consents to the disclosure of such information 
to the party requesting the support allotment.
    (v) Of the amount or percentage that will be deducted if the member 
fails to submit the documentation necessary to enable the designated 
official to respond to the notice within the prescribed time limits.
    (vi) That a consultation with a judge advocate or legal officer will 
be provided by the Military Service, if possible, and that the member 
should immediately contact the nearest legal services office.
    (vii) Of the date that the allotment is scheduled to begin.
    (2) The designated official shall notify the member's commanding 
officer, or designee, of the need for consultation between the member 
and a judge advocate or legal officer. The designated official shall 
provide the member's commanding officer, or designee, with a copy of the 
notice and other legal documentation served on the designated official.
    (3) The Military Services shall provide the member with the 
following:
    (i) When possible, an in-person consultation with a judge advocate 
or legal officer of the Military Service concerned, to discuss the legal 
and other factors, involved in the member's support obligation and 
failure to make payment.
    (ii) Copies any other documents submitted with the notice.
    (4) The member's commanding officer, or designee, shall confirm in 
writing to the designated official within 30 days of notice that the 
member received a consultation concerning the member's support 
obligation and the consequences of failure to make payments, or when 
appropriate, of the inability to arrange such consultation and the 
status of continuing efforts to fulfill the consultation requirement.
    (5) If, within 30 days of the date of the notice, the member has 
furnished the designated official affidavits or other documentation 
showing the information in the notice to be in error, the designated 
official shall consider the member's response. The designated official 
may return to the authorized person, without action, the notice for a 
statutorily required support allotment together with the member's 
affidavit and other documentation, if the member submits substantial 
proof of error, such as:
    (i) The support payments are not delinquent.
    (ii) The underlying support order in the notice has been amended, 
superseded, or set aside.
    (e) Payments. (1) Except as provided in paragraph (e)(3) the 
Secretary of the Military Department concerned, or designee, shall make 
the support allotment by the first end-of-month payday after the 
designated official is notified that the member has had a consultation 
with a judge advocate or legal officer, or that a consultation was not 
possible, but not later than the first end-of-month payday after 30 days 
have elapsed from the date of the notice to the member. The Military 
Services will not be required to vary their normal military allotment 
payment cycle to comply with the notice.
    (2) If several notices are sent with respect to the same member, 
payments

[[Page 246]]

shall be satisfied on a first-come, first-served basis within the amount 
limitations in paragraph (a)(5) of this section.
    (3) When the member identified in the notice is found not to be 
entitled to money due from or payable by the Military Service, the 
designated official shall return the notice to the authorized person and 
shall advise him or her that no money is due from or payable by the 
Military Service to the named individual. When it appears that amounts 
are exhausted temporarily or otherwise unavailable, the authorized 
person shall be told why, and for how long, any money is unavailable, if 
known. If the member separates from active duty, the authorized person 
shall be informed that the allotment is discontinued.
    (4) Payment of statutorily required allotments shall be enforced 
over other voluntary deductions and allotments when the gross amount of 
pay and allowances is not sufficient to permit all authorized deductions 
and collections.
    (5) The authorized person or allottee shall notify the designated 
official promptly if the operative court order upon which the allotment 
is based is vacated, modified, or set aside. The designated official 
shall also be notified of any events affecting the allottee's 
eligibility to receive the allotment, such as the former spouse's 
remarriage, if a part of the payment is for spousal support, and notice 
of a change in eligibility for child support payments under 
circumstances of death, emancipation, adoption, or attainment of 
majority of a child whose support is provided through the allotment.
    (6) An allotment established under this Directive shall be adjusted 
or discontinued upon notice from the authorized person.
    (7) Neither the Department of Defense, nor any officer or employee 
thereof, shall be liable for any payment made from moneys due from, or 
payable by, the Department of Defense to any individual pursuant to 
notice regular on its face, if such payment is made in accordance with 
this part. If a designated official receives notices based on a support 
order which, on its face, appears to conform to the laws of the 
jurisdiction from which it was issued, the designated official shall not 
be required to ascertain whether the authority that issued the order had 
obtained personal jurisdiction over the member.
    (f) List of designated officials.

    Army--Commander, U.S. Army Finance and Accounting Center, ATTN: 
FINCL-G, Indianapolis, IN 46249-0160, (317) 542-2155.
    Navy--Director, Navy Family Allowance Activity, Anthony J. 
Celebrezze Federal Building, Cleveland, OH 44199, (216) 522-5301.
    Air Force--Commander, Air Force Accounting and Finance Center, ATTN: 
JA, Denver, CO 80279, (303) 370-7524.
    Marine Corps--Commanding Officer, Marine Corps Finance Center (Code 
AA), Kansas City, MO 64197, (816) 926-7103.



PART 55--PHYSICAL EXAMINATIONS AND ANNUAL CERTIFICATES OF PHYSICAL CONDITION--Table of Contents




Sec.
55.1  Purpose.
55.2  Applicability.
55.3  Policy.

    Authority: 10 U.S.C. 1004(a).

    Source: 25 FR 14357, Dec. 31, 1960, unless otherwise noted.



Sec. 55.1  Purpose.

    To establish a uniform policy relating to physical examinations and 
certificates of physical condition for reservists (other than retired 
reservists) when not on active duty.



Sec. 55.2  Applicability.

    This part applies to all Military Departments in the administration 
of members of reserve components.



Sec. 55.3  Policy.

    (a) Each member of the Ready Reserve who is not on active duty shall 
be examined as to his physical fitness at least once every four years, 
or more often as the Secretary concerned considers necessary, and shall 
execute and submit annually a certificate of physical condition.
    (b) Each member of the Standby Reserve in an active status, or on an 
inactive status list, shall execute and submit annually a certificate of 
physical condition.
    (c) Members of the Standby Reserve may be examined as to their 
physical

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condition if the Secretary concerned considers such action necessary.
    (d) Physical examinations will be reported on Standard Form 88, 
``Report of Physical Examination'' and Standard Form 89, ``Report of 
Medical History.'' To accomplish physical examinations, the Military 
Departments are authorized to use jointly all available medical 
facilities and to award points creditable toward retirement to medical 
reservists not on active duty for administering physical examinations or 
to use civilian physicians on a reimbursable basis where governmental 
medical facilities are not available.
    (e) The following action may be taken in regard to those reservists 
failing to submit such information as may be requested by the 
appropriate Secretary after every reasonable effort has been made to 
obtain such information:
    (1) Reservists having obligation under the Universal Military 
Training and Service Act, as amended, may be ordered to active duty or 
active duty for training, as deemed appropriate under the provisions of 
section 672(b), title 10, U.S. Code, for the purpose of securing the 
necessary information.
    (2) All other reservists may be considered for discharge pursuant to 
section 1162(a) of title 10 U.S. Code.



PART 56--NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS AND ACTIVITIES ASSISTED OR CONDUCTED BY THE DEPARTMENT OF DEFENSE--Table of Contents




Sec.
56.1  Purpose.
56.2  Applicability and scope.
56.3  Definitions.
56.4  Policy.
56.5  Responsibilities.
56.6  Information requirements.
56.7  Programs and activities subject to this part.
56.8  Guidelines for determining discriminatory practices.
56.9  Ensuring compliance with this part in Federal financial assistance 
          programs and activities.
56.10  Ensuring compliance with this part in programs and activities 
          conducted by the Department of Defense.

    Authority: Pub. L. 93-112, sec. 504 29 U.S.C. 794, as amended by 
Pub. L. 95-602, 92 Stat. 2982; Pub. L. 93-112, sec. 7, 29 U.S.C. 706, as 
amended by Pub. L. 93-516, 88 Stat. 1619; Executive Order 12250; 
Executive Order 12291; Executive Order 12067.

    Source: 47 FR 15124, Apr. 8, 1982, unless otherwise noted.



Sec. 56.1  Purpose.

    This part implements section 504 of Public Law 93-112, 
``Rehabilitation Act of 1973,'' September 26, 1973 (29 U.S.C. 794) 
(1976); section 111 of Pub. L. 93-516, ``Rehabilitation Act Amendments 
of 1974,'' December 7, 1974 (29 U.S.C. 706, 780, 790) (1976); section 
119 of Pub. L. 95-602, ``Rehabilitation, Comprehensive Services, and 
Developmental Disabilities Amendments of 1978,'' November 6, 1978 (29 
U.S.C. 794) (supp. III 1979); and Department of Justice Regulation, 
``Implementation of Executive Order 12250, Nondiscrimination on the 
Basis of Handicap in Federally Assisted Programs,'' August 11, 1981 (28 
CFR part 41) to prohibit discrimination based on handicap in programs 
and activities receiving Federal financial assistance disbursed by the 
Department of Defense and in programs and activities conducted by the 
Department of Defense.



Sec. 56.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense, the 
Military Departments, the Organization of the Joint Chiefs of Staff, the 
National Guard Bureau, and the Defense Agencies (hereafter referred to 
as ``DoD Components'') insofar as they:
    (1) Extend Federal financial assistance to programs and activities 
that affect handicapped persons in the United States and that are 
covered by this part (see Sec. 56.7(b)).
    (2) Conduct programs and activities that affect handicapped persons 
in the United States and that are covered by this part (see 
Sec. 56.7(c)).
    (b) This part also applies to each recipient of Federal financial 
assistance disbursed by the Department of Defense and to each program 
and activity that receives or benefits from such assistance, insofar as 
such recipient, program, or activity affects a handicapped person in the 
United States.

[[Page 248]]



Sec. 56.3  Definitions.

    (a) Facility. All or any portion of buildings, structures, 
equipment, roads, walks, parking lots, or other real or personal 
property or any interest in such property.
    (b) Federal financial assistance. Any grant, loan, contract (other 
than a procurement contract or a contract of insurance or guaranty), or 
any other arrangement by which the Federal Government provides or 
otherwise makes available assistance in the form of:
    (1) Funds.
    (2) Services performed by Federal personnel, including technical 
assistance, counseling, training, and provision of statistical or expert 
information.
    (3) Real and personal property or any interest in or use of such 
property, including:
    (i) Transfers or leases of such property for less than fair market 
value or for reduced consideration.
    (ii) Proceeds from a subsequent transfer or lease of such property 
if the Federal share of its fair market value is not returned to the 
Federal government.
    (c) Handicapped person. Any person who has a physical or mental 
impairment that substantially limits one or more major life activities, 
has a record of such an impairment, or is regarded as having such an 
impairment. For purposes of this Directive as it relates to employment 
programs of recipients, such term does not include any individual who is 
an alcoholic or drug abuser and whose current use of alcohol or drugs 
prevents such individual from performing the duties of the job in 
question, or whose employment, by reason of such current alcohol or drug 
abuse, would constitute a direct threat to property or to the safety of 
others. As used in this paragraph:
    (1) Physical or mental impairment. Any physiological disorder or 
condition, cosmetic disfigurement, or anatomical loss affecting one or 
more of the following body systems: Neurological; musculoskeletal and 
special sense organs; respiratory, including speech organs; 
cardiovascular; reproductive; digestive; genito-urinary; hemic and 
lymphatic; skin; and endocrine; or any mental or psychological disorder, 
such as mental retardation, organic brain syndrome, emotional or mental 
illness, and specific learning disabilities. The term includes such 
diseases and conditions as orthopedic, visual, speech, and hearing 
impairments; cerebral palsy, epilepsy, and muscular dystrophy; multiple 
sclerosis; cancer; heart disease; diabetes; drug abuse; and alcoholism.
    (2) Major life activities. Functions such as caring for one's self, 
performing manual tasks, walking, seeing, hearing, speaking, breathing, 
learning, and working.
    (3) Has a record of such an impairment. Has a history of, or has 
been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment. Has: (i) A physical or 
mental impairment that does not substantially limit major life 
activities but is treated by a recipient or DoD Component as 
constituting such a limitation;
    (ii) A physical or a mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) None of the impairments defined above, but is treated by a 
recipient or DoD Component as having such an impairment.
    (d) Historic properties. Those properties listed or eligible for 
listing in the National Register of Historic Places.
    (e) Include; such as. Not all the possible items are covered, 
whether like or unlike the ones named.
    (f) Qualified handicapped person. A handicapped person who:
    (1) With respect to employment, can perform the essential functions 
of the job in question with reasonable accommodation.
    (2) With respect to services, meets the essential eligibility 
requirements for receiving the services in question.
    (g) Recipient. Any State or political subdivision or instrumentality 
thereof, any public or private agency, institution, organization, or 
other entity, or

[[Page 249]]

any person that receives Federal financial assistance directly or 
through another recipient, including any successor, assignee, or 
transferee of a recipient, but not the ultimate beneficiary of the 
assistance. The term includes persons and entities applying to be 
recipients.
    (h) Substantial impairment. A significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.



Sec. 56.4  Policy.

    It is DoD policy that no qualified handicapped person shall be 
subjected to discrimination on the basis of handicap under any program 
or activity that receives or benefits from Federal financial assistance 
disbursed by a DoD Component or under any Federal program or activity 
that is conducted by a DoD Component. Guidelines for determining actions 
that discriminate against handicapped persons are prescribed in 
Sec. 56.8.



Sec. 56.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) (ASD(MRA&L)), or designee, shall monitor compliance with 
this part. In discharging this responsibility, the ASD(MRA&L), or 
designee, shall:
    (1) Coordinate efforts of DoD Components to enforce this part.
    (2) Assist in the development of standards and procedures 
promulgated pursuant to Sec. 56.9.
    (3) Perform the responsibilities assigned to the ASD(MRA&L) in 
Sec. 56.8, 9, and 10.
    (4) Otherwise assist DoD Components in implementing this part.
    (b) The Heads of DoD Components shall comply with this part. In 
discharging this responsibility, they shall:
    (1) Designate a policy-level official to ensure compliance with this 
part receive and investigate complaints filed under this part and 
otherwise manage DoD Component responsibilities under this part.
    (2) Notify the ASD(MRA&L), or designee, of the name, position, 
location, and telephone number of persons selected by them to be policy-
level officials within 15 calendar days of such a selection.
    (3) Issue guidelines pursuant to Sec. 56.9.
    (4) Cooperate fully with the ASD(MRA&L), or designee, in that 
official's performance of the responsibilities assigned herein, 
including furnishing to the ASD(MRA&L), or designee, in a timely fashion 
any requested reports and information.
    (5) Assign sufficient personnel to implement and to ensure effective 
enforcement of this part.



Sec. 56.6  Information requirements.

    (a) Each DoD Component shall maintain a log of all complaints that 
are filed with it or its recipients under this part. The log shall 
contain the complainant's name (last name, first, and middle initial) 
and address (street address, city, State, and zip code), the recipient's 
name (if this refers to a person, last name, first, and middle initial) 
and address (street address, city, State, and zip code), the nature of 
the complaint, and the current status of the complaint investigation or 
resolution. Each DoD Component shall submit a narrative summary report 
on complaints by memorandum to the ASD(MRA&L), or designee, before July 
15 and January 15 of each year. This reporting requirement has been 
assigned Report Control Symbol DD-M(SA)1596.
    (b) Each DoD Component shall submit a narrative report by memorandum 
to the ASD(MRA&L), or designee, whenever, pursuant to enclosure 4 of 
this directive, the DoD Component notifies an applicant or recipient 
that noncompliance with this part is indicated. The report shall include 
the recipient's name (if this refers to a person, last name, first, and 
middle initial) and address (street address, city, State, and zip code), 
the date (YYMMDD) and nature of the finding, and the name of the 
applicable federally assisted program or activity. This reporting 
requirement has been assigned Report Control Symbol DD-M(AR)1597.
    (c) The recordkeeping requirements contained in Sec. 56.9(c)(2), 
have been approved by the Office of Management and Budget (OMB) under 44 
U.S.C. chapter 35 and have been assigned OMB No. 0704-0102.

[[Page 250]]



Sec. 56.7  Programs and activities subject to this part.

    (a) This part applies to all DoD Components and recipients of 
Federal financial assistance disbursed by a DoD Component insofar as the 
programs and activities of the DoD Components and recipients affect 
handicapped persons in the United States. Existing programs and 
activities that are assisted or conducted by a DoD Component and that 
are subject to this part but do not appear in paragraph (b) or (c) of 
this section, are covered even though not listed. DoD Components must 
report new programs and activities that are subject to this part to the 
ASD (MRA&L), or designee, within 15 calendar days of their creation or 
funding.
    (b) Federal financial assistance programs subject to this part 
include: (1) title 32, United States Code, sections 101-716 (1976 and 
supp. III 1979): the Army and Air National Guard.
    (2) Title 40, U.S. Code, sections 483, 484, and 512 (1976); title 
49, U.S. Code, sections 1101 and 1107 (1976); and title 10, U.S. Code, 
sections 2541, 2544, 2571, 2576, 2662, 7308, 7541, 7542, 7545, 7546, and 
7547 (1976 and supp. IV 1980): Various programs involving the loan or 
other disposition of surplus, obsolete, or unclaimed property.
    (3) Title 10 U.S. Code, sections 4307-4311 (1976), and the annual 
Department of Defense Appropriations Act: National Program for the 
Promotion of Rifle Practice.
    (4) Secretary of the Navy Instruction 5720.19E, ``Navy Science 
Cruiser Program,'' February 24, 1977.
    (5) Title 10 U.S. Code, section 9441 (1976 and supp. IV 1980): Civil 
Air Patrol.
    (6) Title 41 U.S. Code, sections 501-509 (supp. III 1979): Federal 
grants and cooperative agreements.
    (7) Title 33 U.S. Code, section 426 (1976 and supp. III 1979): Army 
Corps of Engineers participation in cooperative investigations and 
studies concerning the erosion of shores of coastal and lake waters.
    (8) Title 33 U.S. Code, sections 426e-426h (1976): Army Corps of 
Engineers assistance in the construction of works for the restoration 
and protection of shores.
    (9) Title 16 U.S. Code, section 460d (1976): Construction and 
operation of public park and recreational facilities in water resource 
development projects under the administrative jurisdiction of the 
Department of the Army.
    (10) Title 33 U.S. Code, section 701c-3 (1976): Payment to States of 
lease receipts from lands acquired by the United States for flood 
control, navigation, and allied purposes.
    (11) Title 33 U.S. Code, sections 558c and 702d-1 (1976); title 10, 
U.S. Code, sections 2668 and 2669 (1976); title 43, U.S. Code, section 
961 (1976); and title 40, U.S. Code, section 319 (1976): Grants of 
easements without consideration, or at a nominal or reduced 
consideration, on land under the control of the Department of the Army 
at water resource development projects.
    (12) Title 33 U.S. Code, sections 540 and 577 (1976): Army Corps of 
Engineers assistance in the construction of small boat harbor projects.
    (13) Title 33 U.S. Code, section 701s (1976): Emergency bank 
protection works constructed by the Army Corps of Engineers for 
protection of highways, bridge approaches, and public works.
    (14) Title 33 U.S. Code, section 633 (1976): Army Corps of Engineers 
contracts for the protection, alteration, reconstruction, relocation, or 
replacement of structures and facilities.
    (15) Title 50 U.S. Code, section 453 (1976): Defense Logistics 
Agency loans of industrial equipment to educational institutions (Tools 
for Schools).
    (16) Title 33 U.S. Code, section 610 (1976): Provision of 
specialized services or technical information by the Army Corps of 
Engineers to State and local governments for the control of aquatic 
plant growths in rivers, harbors, and allied waters.
    (17) Title 42 U.S. Code, section 1962d-16 (1976): Provision of 
specialized services by the Army Corps of Engineers to any State for the 
preparation of comprehensive plans for drainage basins located within 
the boundaries of said State.
    (18) Title 33 U.S. Code, section 603a (1976): Provision of 
specialized services by the Army Corps of Engineers to improve channels 
for navigation.

[[Page 251]]

    (19) Title 33 U.S. Code, section 701g (1976): Provision of 
specialized services by the Army Corps of Engineers to reduce flood 
damage.
    (20) Title 24 U.S. Code, sections 44c and 47 (1976): United States 
Soldiers' and Airmen's Home.
    (21) Title 10 U.S. Code, chapter 55, as implemented by DoD 6010.8-R, 
``Civilian Health and Medical Program of the Uniformed Services 
(CHAMPUS),'' January 10, 1977.
    (c) All programs and activities conducted by the Department of 
Defense that affect handicapped persons in the United States are subject 
to this part. They include:
    (1) Promulgation of rules and regulations for public comment in a 
manner that grants handicapped persons a reasonable opportunity for such 
comment (such as by making cassette recordings of proposed rules).
    (2) Public meetings, conferences, or seminars sponsored or conducted 
by a DoD Component but held in nongovernmental buildings.
    (3) Public meetings, conferences, or seminars sponsored or conducted 
by a DoD Component or by a non-DoD organization but held in a DoD 
building.
    (4) Open houses, memorial services, tours, or other ceremonies held 
on or in DoD property.
    (5) Military museums.
    (6) Historic vessels.
    (7) Historic buildings and properties maintained by a DoD Component 
and properties designated as historic under a statute of the appropriate 
State or local governmental body.
    (8) Schools operated by the Department of Defense within the United 
States pursuant to section 6 of Public Law 81-874, title 20, U.S. Code, 
section 241 (1976).



Sec. 56.8  Guidelines for determining discriminatory practices.

    (a) General prohibitions against discrimination. (1) No qualified 
handicapped person shall, on the basis of handicap, be excluded from 
participation in, be denied the benefit of, or otherwise be subjected to 
discrimination under any program or activity that is conducted by the 
Department of Defense or that receives or benefits from Federal 
financial assistance disbursed by the Department of Defense.
    (2) A recipient or DoD Component may not, directly or through 
contractual, licensing, or other arrangements, on the basis of handicap:
    (i) Provide different or separate aid, benefits, or services to 
handicapped persons than is provided to others unless such action is 
necessary to provide qualified handicapped persons with aid, benefits, 
or services that are equal to those provided to others;
    (ii) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (iii) Afford a qualified handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iv) Provide a qualified handicapped person with an aid, benefit, or 
service that is not as effective as that afforded to others; or
    (v) Otherwise limit a qualified handicapped person in the enjoyment 
of any right, privilege, advantage, or opportunity granted to others 
receiving the aid, benefit, or service.
    (3) A recipient or DoD Component may not deny a qualified 
handicapped person the opportunity to participate in programs or 
activities that are not separate or different from regular programs or 
activities, even if such separate or different programs and activities 
are permissible under paragraph (a)(2)(i) of this section.
    (4) A recipient or DoD Component may not provide assistance to an 
agency, organization, or person that discriminates on the basis of 
handicap in providing any aid, benefit, or service to beneficiaries of 
the recipient's program or activity.
    (5) A recipient of DoD Component may not deny, on the basis of 
handicap, a qualified handicapped person the opportunity to participate 
as a member of planning or advisory boards.
    (6) A recipient or DoD Component may not use, directly or through 
contractual or other arrangements, criteria or methods of administration 
that:

[[Page 252]]

    (i) Subject qualified handicapped persons to discrimination on the 
basis of handicap;
    (ii) Defeat or substantially impair accomplishment of the objectives 
of the recipient's or DoD Component's program or activity with respect 
to handicapped persons; or
    (iii) Perpetuate discrimination by another recipient if both 
recipients are subject to common administrative control or are agencies 
of the same State.
    (7) In determining the site or location of a facility, a recipient 
or DoD Component may not make selections that:
    (i) Exclude handicapped persons from, deny them the benefits of, or 
otherwise subject them to discrimination under any program or activity 
that receives or benefits from Federal financial assistance; or
    (ii) Defeat or substantially impair, with respect to handicapped 
persons, the accomplishment of the objectives of the program or 
activity.
    (8) Recipients and DoD Components shall administer programs and 
activities in the most integrated setting appropriate to the needs of 
qualified handicapped persons.
    (9) Recipients and DoD Components shall take appropriate steps to 
make communications with their applicants, employees, and beneficiaries 
available to persons with impaired vision and hearing.
    (10) This section may not be interpreted to prohibit the exclusion 
of:
    (i) Persons who are not handicapped from benefits, programs, and 
activities limited by Federal statute or Executive order to handicapped 
persons; or
    (ii) One class of handicapped persons from a program or activity 
limited by Federal statute or Executive order to a different class of 
handicapped persons.
    (11) Recipients and DoD Components shall take appropriate steps to 
ensure that no handicapped individual is denied the benefits of, 
excluded from participation in, or otherwise subjected to discrimination 
under any program or activity receiving or benefiting from Federal 
financial assistance disbursed by the Department of Defense or under any 
program or activity conducted by the Department of Defense because of 
the absence of auxiliary aids, such as certified sign-language 
interpreters, telecommunication devises (TDDs), or other telephonic 
devices for individuals with impaired sensory, manual, or speaking 
skills.
    (b) Prohibitions against employment discrimination by recipients. 
(1) No qualified handicapped person shall, on the basis of handicap, be 
subjected to discrimination in employment under any program or activity 
that receives or benefits from Federal financial assistance disbursed by 
the Department of Defense.
    (2) The prohibition against discrimination in employment applies to 
the following:
    (i) Recruitment, advertising, and processing of applications for 
employment.
    (ii) Hiring, upgrading, promotion, award of tenure, demotion, 
transfer, layoff, termination, right of return from layoff, and 
rehiring.
    (iii) Rates of pay or any other form of compensation and changes in 
compensation.
    (iv) Job assignments, job classifications, organizational 
structures, position descriptions, lines of progression, and seniority 
lists.
    (v) Leaves of absence, sick leave, or any other leave.
    (vi) Fringe benefits available by virtue of employment, whether or 
not administered by the recipient.
    (vii) Selection and financial support for training, including 
apprenticeship, professional meetings, conferences and other related 
activities, and selection for leaves of absence for training.
    (viii) Programs and activities sponsored by the employer, including 
social and recreational programs.
    (ix) Any other term, condition, or privilege of employment.
    (3) A recipient may not participate in a contractual or other 
relationship that subjects qualified handicapped applicants or employees 
to discrimination prohibited by this section, including relationships 
with employment and referral agencies, labor unions, organizations 
providing or administering fringe benefits to employees of the 
recipient, and organizations providing training and apprenticeship 
programs.
    (4) A recipient shall make reasonable accommodation to the known 
physical

[[Page 253]]

or mental limitations of an otherwise qualified handicapped applicant or 
employee unless the recipient can demonstrate that the accommodation 
would impose an undue hardship on the operation of its program. 
Reasonable accommodation includes providing ramps, accessible restrooms, 
drinking fountains, interpreters for deaf employees, readers for blind 
employees, amplified telephones, TDDs such as Teletypewriters or 
Telephone Writers (TTYs), and tactile signs on elevators.
    (5) A recipient may not use employment tests or criteria that 
discriminate against handicapped persons, and shall ensure that 
employment tests are adapted for use by persons who have handicaps that 
impair sensory, manual, or speaking skills.
    (6) A recipient may not conduct a preemployment medical examination 
or make a preemployment inquiry about whether an applicant is a 
handicapped person or about the nature or severity of a handicap. A 
recipient may make, however, a preemployment inquiry into an applicant's 
ability to perform job-related functions.
    (7) When a recipient is taking remedial action to correct the 
effects of past discrimination or is taking voluntary action to overcome 
the effects of conditions that have resulted in limited participation by 
handicapped persons in its federally assisted program or activity, the 
recipient may invite applicants for employment to indicate whether and 
to what extent they are handicapped if:
    (i) The recipient makes clear to the applicants that the information 
is intended for use solely in connection with its remedial action 
obligations or its voluntary affirmative action efforts.
    (ii) The recipient makes clear to the applicants that the 
information is being requested on a voluntary basis, that it will be 
kept confidential as provided in paragraph (b)(9) in this section, that 
refusal to provide it will not subject the applicants to any adverse 
treatment, and that it will be used only in accordance with this part.
    (8) Nothing in this section shall prohibit a recipient from 
conditioning an offer of employment on the results of a medical 
examination conducted prior to the employee's entrance on duty if:
    (i) All entering employees are subjected to such an examination, 
regardless of handicap.
    (ii) The results of such an examination are used only in accordance 
with this part which prohibits discrimination against a qualified 
handicapped person on the basis of handicap.
    (9) Information obtained under this section concerning the medical 
condition or history of applicants shall be collected and maintained on 
separate forms that shall be accorded confidentiality as medical 
records, except that:
    (i) Supervisors and managers may be informed about restrictions on 
the work or duties of handicapped persons and about necessary 
accommodations.
    (ii) First aid and safety personnel may be informed, when 
appropriate, if a handicapping condition might require emergency 
treatment.
    (iii) Government officials investigating compliance with section 
504, Pub. L. 93-112, and this part shall be provided relevant 
information upon request.
    (c) Program accessibility--(1) General requirements. No qualified 
handicapped person shall, because a recipient's or DoD Component's 
facilities are inaccessible to or not usable by handicapped persons, be 
denied the benefits of, be excluded from participation in, or otherwise 
be subjected to discrimination under any program or activity that 
receives or benefits from Federal financial assistance disbursed by the 
Department of Defense or under any program or activity conducted by the 
Department of Defense.
    (2) Existing facilities. (i) A recipient or DoD Component shall 
operate each program or activity so that the program or activity, when 
viewed in its entirety, is readily accessible to and usable by 
handicapped persons. This does not necessarily require a recipient or 
DoD Component to make each of its existing facilities or every part of 
an existing facility accessible to and usable by handicapped persons. 
For guidance in determining the accessibility of facilities, see chapter 
18 of DoD 4270.1-M, ``Department of Defense Construction Criteria 
Manual,'' June 1, 1978, and Department of the Army, Office of the

[[Page 254]]

Chief of Engineers, Manual EM 1110-1-103, ``Design for the Physically 
Handicapped,'' October 15, 1976. Inquiries on specific accessibility 
design problems may be addressed to the ASD (MRA&L), or designee.
    (ii) When structural changes are necessary to make programs or 
activities in existing facilities accessible to the exent required by 
paragraph (c)(1) of this section.
    (A) Such changes shall be made as soon as practicable, but not later 
than 3 years after the effective date of this part however, if the 
program or activity is a particular mode of transportation (such as a 
subway station) that can be made accessible only through extraordinarily 
expensive structural changes to, or replacement of, existing facilities 
and if other accessible modes of transportation are available, the DoD 
Component concerned may extend this period of time. This extension shall 
be for a reasonable and definite period, which shall be determined after 
consultation with the ASD(MRA&L), or designee.
    (B) The recipient or DoD Component shall develop, with the 
assistance of interested persons or organizations and within a period to 
be established in each DoD Component's guidelines, a transition plan 
setting forth the steps necessary to complete such changes.
    (C) The recipient or DoD Component shall make a copy of the 
transition plan available for public inspection. At a minimum, the plan 
shall:
    (1) Identify physical obstacles in the recipient's or DoD 
Component's facilities that limit the accessibility of its program or 
activity to handicapped persons.
    (2) Describe in detail the methods that will be used to make the 
facilities accessible.
    (3) Specify the schedule for taking the steps necessary to achieve 
full program accessibility and, if the time period of the transition 
plan is longer than 1 year, identify steps that will be taken during 
each year of the transition period.
    (4) Indicate the person (last name, first, and middle initial) 
responsible for implementation of the transition plan.
    (iii) A recipient or DoD Component may comply with paragraphs 
(c)(2)(i) and (c)(2)(ii) of this section, through such means as the 
acquisition or redesign of equipment, such as telecommunication or other 
telephonic devices; relocation of classes or other services to 
accessible buildings; assignment of aides to beneficiaries, such as 
readers or certified sign-language interpreters; home visits; delivery 
of health, welfare, or other services at accessible alternate sites; 
alteration of existing facilities and construction of new facilities in 
conformance with paragraph (c)(3) in this section; or any other method 
that results in making the program or activity of the recipient or DoD 
Component accessible to handicapped persons.
    (iv) A recipient or DoD Component is not required to make structural 
changes in existing facilities when other methods are effective in 
achieving compliance with this section.
    (v) In choosing among available methods for meeting the requirements 
of this section, a recipient or DoD Component shall give priority to 
those methods that offer programs and activities to handicapped persons 
in the most integrated setting appropriate with nonhandicapped persons.
    (3) New Construction. New facilities shall be designed and 
constructed to be readily accessible to and usable by handicapped 
persons. Alterations to existing facilities shall be designed and 
constructed, to the maximum extent feasible, to be readily accessible to 
and usable by handicapped persons. For guidance in determining the 
accessibility of facilities, see chapter 18 of DoD 4270.1-M and 
Department of the Army, Office of the Chief of Engineers, Manual EM 
1110-1-103. Inquiries about specific accessibility design problems may 
be addressed to the ASD(MRA&L), or designee.
    (4) Historic properties. (i) In the case of historic properties, 
program accessibility shall mean that, when viewed in their entirety, 
programs are readily accessible to and usable by handicapped persons. 
Because the primary benefit of historic properties is the experience of 
the property itself, DoD Components and recipients shall give priority 
to those methods of achieving program accessibility that make the 
historic

[[Page 255]]

property, or portions thereof, physically accessible to handicapped 
persons.
    (ii) Methods of achieving program accessibility include:
    (A) Making physical alterations that give handicapped persons access 
to otherwise inaccessible areas or features of historic properties.
    (B) Using audiovisual materials and devices to depict otherwise 
inaccessible areas or features of historic properties.
    (C) Assigning individuals to guide handicapped persons into or 
through otherwise inaccessible portions of historic properties.
    (D) Adopting other innovative methods.
    (iii) When program accessibility cannot be achieved without causing 
a substantial impairment of significant historic features, the DoD 
Component or recipient may seek a modification or waiver of access 
standards from the ASD (MRA&L), or designee.
    (A) A decision to grant a modification or waiver shall be based on 
consideration of the following:
    (1) Scale of the property, reflecting its ability to absorb 
alterations.
    (2) Use of the property, whether primarily for public or private 
purposes.
    (3) Importance of the historic features of the property to the 
conduct of the program.
    (4) Costs of alterations in comparison to the increase in 
accessibility.
    (B) The ASD(MRA&L), or designee, shall review periodically any 
waiver granted under this paragraph and may withdraw it if technological 
advances or other changes warrant.
    (iv) The decision by the ASD(MRA&L), or designee, to grant a 
modification or waiver of access standards is subject to section 106 of 
the National Historic Preservation Act, as amended, and shall be made in 
accordance with the Advisory Council on Historic Preservation regulation 
on ``Protection of Historic and Cultural Properties'' (36 CFR part 800). 
When the property is federally owned or when Federal funds may be used 
for alterations, the ASD(MRA&L), or designee, shall obtain the comments 
of the Advisory Council on Historic Preservation when required by 
section 106 of the National Historic Preservation Act and the Advisory 
Council on Historic Preservation regulation on ``Protection of Historic 
and Cultural Properties'' (36 CFR part 800) prior to effectuation of 
structural alterations.
    (v) DoD Component guidelines prepared in accordance with Sec. 56.10 
shall include a listing of all historic properties, including historic 
ships, subject to this part and a plan for compliance with paragraph 
(c)(4) of this section.
    (5) Military museums. (i) In the case of military museums, program 
accessibility shall mean that exhibits, displays, tours, lectures, 
circulating or traveling exhibits, and other programs of military 
museums are accessible to and usable by handicapped persons. Methods of 
meeting this requirement include the following:
    (A) Museum programs may be made accessible to deaf and hearing-
impaired persons by means such as training museum staff, such as 
docents, in sign language; providing qualified sign-language 
interpreters to accompany deaf or hearing-impaired visitors; ensuring 
that clear, concise language is used on all museum signs and display 
labels; providing amplification devices; or providing printed scripts 
for films, videotapes, lectures, or tours. DoD Components are encouraged 
to use ``Museums and Handicapped Students: Guidelines for Educators,'' 
published by the National Air and Space Museum, Smithsonian Institution, 
Washington, DC 20560.
    (B) Museum programs may be made accessible to blind and visually-
impaired persons by means such as providing museum catalogues in a 
large-print edition printed over braille; providing cassette tapes, 
records, or discs for museum tours or exhibits; providing readers to 
accompany blind or visually impaired visitors; using large-print and 
braille display cards at exhibits; providing raised-line maps of the 
museum building; using raised-line drawings, reproductions, or models of 
large exhibits to facilitate tactile experiences when touching exhibits 
is prohibited; placing large-print and braille signs to identify 
galleries, elevators, restrooms, and other service areas; and permitting 
guide dogs in all museum facilities.

[[Page 256]]

    (C) Museum programs may be made accessible to other physically 
impaired persons by means such as lowering display cases; spacing 
exhibits to facilitate movement; using ramps in galleries; increasing 
lighting in exhibit areas to facilitate viewing from a distance; 
providing places to sit in exhibit areas; making restrooms accessible; 
using large-print exhibit display cards to facilitate reading from a 
distance; and sensitizing museum staff to consider the needs of 
handicapped visitors when organizing exhibits.
    (ii) DoD Component guidelines developed in accordance with paragraph 
(c)(5) of this section shall identify military museums subject to 
paragraph (c) of this section and shall contain a plan for making museum 
programs accessible to handicapped persons. Technical assistance in the 
preparation and content of these plans may be obtained from the National 
Access Center, 1419 27th Street, NW., Washington, DC 20007 ((202) 333-
1712 or TTY (202) 333-1339). In addition, community organizations that 
serve handicapped persons and handicapped persons themselves shall be 
consulted in the preparation of these plans.
    (d) Reasonable accommodation. (1) A recipient or DoD Component shall 
make reasonable accommodation to the known physical or mental 
limitations of an otherwise qualified handicapped applicant or employee 
unless the recipient or DoD Component demonstrates to the ASD(MRA&L), or 
designee, that the accommodation would impose an undue hardship on the 
operation of its program.
    (2) Reasonable accommodation includes the following:
    (i) Making facilities used by employees readily accessible to and 
usable by handicapped persons.
    (ii) Job restructuring; part-time or modified work schedules; 
acquisition or modification of equipment or devices, such as 
telecommunication or other telephonic instruments; the provision of 
readers or certified sign-language interpreters; and similar actions.
    (3) In determining whether an accommodation would impose an undue 
hardship on the operation of a recipient's or DoD Component's program, 
the ASD(MRA&L), or designee, shall consider the following factors, at a 
minimum:
    (i) The overall size of the recipient's or DoD Component's program 
or activity, such as the number of employees, number and type of 
facilities, and size of budget.
    (ii) The size of the recipient's or DoD Component's operations, 
including the composition and structure of the recipient's or DoD 
Component's workforce.
    (iii) The nature and cost of the accommodation needed.
    (4) A recipient or DoD Component may not deny any employment 
opportunity to a qualified handicapped employee or applicant for 
employment if the basis for the denial is the need to make reasonable 
accommodation to the physical or mental limitations of the employee or 
applicant.



Sec. 56.9  Ensuring compliance with this part in Federal financial assistance programs and activities.

    (a) Supplementary guidelines issued by DoD Components. (1) Whenever 
necessary, DoD Components shall publish supplementary guidelines for 
each type of program or activity to which they disburse Federal 
financial assistance within 120 days of the effective date of this part 
or of the effective date of any subsequent statute authorizing Federal 
financial assistance to a new type of program or activity. DoD 
Components shall obtain approval of these supplementary guidelines from 
the ASD(MRA&L), or designee, before issuing them. Prior to their 
issuance, the ASD(MRA&L), or designee, shall submit supplementary 
guidelines prepared pursuant to paragraph (a)(1) of this section to the 
Coordination and Review Section, Civil Rights Division, Department of 
Justice, for review and approval. To the extent that supplementary 
guidelines issued by DoD Components deal with the employment of 
civilians in programs and activities subject to this part the 
ASD(MRA&L), or designee, shall also obtain the approval of the Equal 
Employment Opportunity Commission (EEOC) in accordance with Executive 
Order 12067.
    (2) The ASD(MRA&L), or designee, and DoD Components shall ensure 
that

[[Page 257]]

their supplementary guidelines conform to the requirements of this part 
and that they provide:
    (i) A description of the types of programs and activities covered.
    (ii) Examples of prohibited practices likely to arise with respect 
to those types of programs and activities.
    (iii) A list of the data collection and reporting requirements of 
the recipients.
    (iv) Procedures for processing and investigating complaints.
    (v) Procedures for hearings to determine compliance by recipients 
with this part.
    (vi) Requirements or suggestions for affirmative action on behalf of 
qualified handicapped persons.
    (vii) Requirements for the dissemination of program and complaint 
information to the public.
    (viii) A description of the form of the assurances that must be 
executed pursuant to paragraph (b) of this section, and sample 
assurances.
    (ix) Requirements concerning the frequency and nature of 
postapproval reviews conducted pursuant to paragraph (h) of this 
section.
    (x) A period of time, provided for by Sec. 56.8(c)(2)(ii)(B), for 
the development of a transition plan that sets out the steps necessary 
to complete structural changes that might be required by Sec. 56.8(c).
    (xi) The maximum period of time that may be allowed for extensions 
that might be granted pursuant to Sec. 56.8(c)(2)(ii).
    (xii) An appendix that contains a list of identified programs and 
activities of the type covered by the supplementary guidelines, 
including the names of the programs and activities and the authorizing 
statute, regulation, or directive for each program and activity.
    (xiii) Requirements for the recipient to designate a responsible 
official to coordinate the implementation of supplementary guidelines.
    (xiv) Requirements for any other actions or procedures necessary to 
implement this part.
    (3) When the head of a DoD Component determines that it would not be 
appropriate to include on or more of the provisions described in 
paragraph (a)(2) of this section, in the supplementary guidelines of 
that DoD Component or that it is not necessary to issue such guidelines 
at all, the reasons for such determination shall be stated in writing 
and submitted to the ASD(MRA&L), or designee, for review and approval. 
Once that determination is approved, the DoD Component shall make it 
available to the public upon request.
    (4) The heads of DoD Components, or designees, shall be responsible 
for keeping the supplementary guidelines current and accurate. When a 
DoD Component determines that a program or activity should be added to 
or deleted from the guidelines, the DoD Component shall notify the 
ASD(MRA&L), or designee, in writing.
    (b) Required assurances. (1) DoD Components shall require all 
recipients to file written assurances that their programs or activities 
will be conducted in accordance with this part and supplementary 
guidelines promulgated by DoD Components. If a recipient fails to 
provide an assurance that conforms to the requirements of this section, 
the DoD Component shall attempt to effect compliance pursuant to 
paragraphs (f) through (h) of this section, provided that if assistance 
is due and payable to the recipient based on an application approved 
prior to the effective date of this part the DoD Component shall 
continue the assistance while any proceedings required by paragraphs (n) 
through (v) of this section, are pending.
    (2) DoD Components shall advise each recipient of the required 
elements of the assurance and, with respect to each program or activity, 
of the extent to which those receiving assistance from recipients shall 
be required to execute similar assurances.
    (3) DoD Component shall ensure that each assurance:
    (i) Obligates the recipient to advise the DoD Component of any 
complaints received that allege discrimination against handicapped 
persons.
    (ii) Obligates the recipient to collect and provide the items of 
information that the DoD Component lists in its supplementary guidelines 
pursuant to paragraph (a)(2)(iii) of this section.
    (iii) Is made applicable to any Federal financial assistance that 
might be

[[Page 258]]

disbursed by a DoD Component without the submission of a new 
application.
    (iv) Obligates the recipient, when the financial assistance is in 
the form of proprerty, for the period during which the property is used 
under a financial assistance agreement or is possessed by the recipient.
    (v) Includes a provision recognizing that the U.S. Government has 
the right to seek judicial enforcement of section 504 and this part.
    (c) Self-evaluation and consultation with interested persons and 
organizations. (1) DoD Components shall require recipients to conduct, 
within 6 months of the effective date of this part or of first receiving 
Federal financial assistance disbursed by the Department of Defense, a 
self-evaluation with the assistance of interested persons, including 
handicapped persons or organizations that represent them. When 
appropriate, DoD Components also shall require recipients to consult at 
least annually with such persons. The ``Department of Health, Education, 
and Welfare Section 504 Technical Assistance Reserve Directory,'' April 
1980, shall be consulted to identify likely sources for consultation. In 
conducting its self-evaluation, each recipient shall:
    (i) Evaluate the effects of its policies and practices with respect 
to its compliance with this part and the applicable DoD Component's 
supplementary guidelines.
    (ii) Modify any policies that do not meet such requirements.
    (iii) Take appropriate remedial steps to eliminate the 
discriminatory effects of any such policies or practices.
    (2) For at least 3 years following the completion of a self-
evaluation required under paragraph (c)(1) of this section, a recipient 
shall maintain on file, make available for public inspection, and 
provide to the ASD(MRA&L), or designee, upon request:
    (i) A list of the interested persons (last names, first names, and 
middle initials) consulted.
    (ii) A description of areas examined and problems identified, if 
any, with respect to those areas.
    (iii) A description of any modification made and remedial steps 
taken.
    (d) Dissemination of information. (1) Within 90 days of the 
effective date of this part or of first receiving assistance from the 
Department of Defense and on a continuing basis thereafter, each 
recipient shall notify beneficiaries and employees of their rights under 
this part and shall take appropriate steps to notify participants, 
beneficiaries, applicants for employment and employees, including those 
with impaired vision or hearing, and unions or professional 
organizations involved in collective bargaining or professional 
agreements with the recipient that the recipient does not discriminate 
on the basis of handicap in violation of this part. The notification 
shall state, when appropriate, that the recipient does not discriminate 
in admitting or providing access to or treating or employing persons in 
its programs and activities. Such notification may be accomplished by 
posting notices, publishing announcements in newspapers and magazines, 
placing notices in its publications, or distributing memoranda or other 
written communications.
    (2) If a recipient publishes or uses and makes available to 
participants, beneficiaries, applicants for employment, or employees 
recruitment materials or publications containing general information 
about the recipient's programs and activities, it shall include in those 
materials or publications a statement of the policy described in 
paragraph (d)(1) of this section. This may be accomplished by including 
appropriate inserts in existing materials and publications or by 
revising and reprinting the materials and publications.
    (3) Understandable materials developed in accordance with this 
section shall be provided to ensure that all beneficiaries and employees 
of the recipient understand the information. In addition, recipients 
shall disseminate appropriate and comprehensive information about formal 
and informal complaint and appeal procedures, including directions on 
how and where to file complaints and to appeal DoD Component decisions.
    (e) Intimidation and interference. Recipients and DoD Components 
shall take reasonable steps to ensure that no person intimidates, 
threatens, coerces, or discriminates against any individual for the 
purpose of retaliating against, interfering with, or discouraging the

[[Page 259]]

filing of a complaint, furnishing of information, or assisting or 
participating in an investigation, compliance review, hearing, or other 
activity related to the administration of this part.
    (f) Staff responsibilities. All DoD Component determinations of 
recipient compliance with this part shall be subject to reviews by the 
ASD(MRA&L), or designee. When responsibility for approving applications 
for Federal financial assistance disbursed by a DoD Component is 
assigned to regional or area offices of the DoD Component, personnel in 
such offices shall be designated to perform the functions described in 
paragraphs (h) and (o) through (w) of this section.
    (g) Access to records and facilities. Each recipient shall permit 
access to its premises by DoD officials during normal business hours 
when such access is necessary for conducting onsite compliance reviews 
or complaint investigations, and shall allow such officials to 
photograph facilities and to inspect and copy any books, records, 
accounts, and other material relevant to determining the recipient's 
compliance with this part. Information so obtained shall be used only in 
connection with the administration of this part. If the recipient does 
not have the information requested, it shall submit to the DoD Component 
a written report that contains a certification that the information is 
not available and describes the good-faith efforts made to obtain the 
information.
    (h) Compliance review. DoD Components shall determine the compliance 
of each recipient with this part as follows: (1) General. Whenever 
possible, DoD Components shall perform compliance reviews in conjunction 
with their review and audit efforts implementing title VI of the Civil 
Rights Act of 1964.
    (2) Desk audit application review. Before approving an application 
for Federal financial assistance, the DoD Component concerned shall make 
a written determination as to whether the recipient is in compliance 
with this part, based on a review of the assurance of compliance 
executed by a recipient pursuant to paragraph (b) of this section, and 
other data submitted by the recipient. When a determination cannot be 
made from the assurance and other data submitted by the recipient, the 
DoD Component concerned shall require the recipient to submit additional 
information and shall take other steps as necessary to determine the 
recipient's compliance with this part. If this additional information 
demonstrates that the recipient is in compliance with this part, the DoD 
Component shall notify the recipient promptly that it is in compliance.
    (3) Preapproval onsite review. (i) When a desk audit application 
review conducted pursuant to paragraph (h)(2) of this section indicates 
that the recipient might not be in compliance with this part, the DoD 
Component concerned may conduct a preapproval onsite review at the 
recipient's facilities before approving the disbursement of Federal 
financial assistance to the recipient. The DoD Component shall conduct 
such a review:
    (A) When appropriate, if a desk audit application review reveals 
that the recipient's compliance posture is questionable because of a 
history of discrimination complaints, current discrimination complaints, 
a noncompliance determination by another government agency or DoD 
Component, or other indications of possible noncompliance; or
    (B) If Federal financial assistance is requested for construction, 
except under extraordinary circumstances, to determine whether the 
location and design of the project would provide service on a 
nondiscriminatory basis, in conformity with Sec. 56.8(c).
    (ii) Preapproval onsite reviews shall be conducted under DoD 
Component supplementary guidelines and in accordance with the provisions 
of paragraph (h)(4) of this section, concerning postapproval reviews.
    (4) Postapproval reviews. DoD Components shall: (i) Establish and 
maintain effective programs of postapproval reviews.
    (ii) Conduct such reviews of each recipient, the frequency and the 
nature of which shall be prescribed in the DoD Component supplemetary 
guidelines implementing this part.
    (iii) Require recipients periodically to submit compliance reports 
to them.

[[Page 260]]

    (iv) Record the results of the reviews, including findings of fact 
and recommendations.
    (5) A DoD Component shall complete a review within 180 calendar days 
of initiating it unless an extension of time is granted by the 
ASD(MRA&L), or designee, for good cause shown, and shall either:
    (i) Find the recipient to be in compliance and notify the recipient 
of that finding; or
    (ii) Notify the recipient and the ASD(MRA&L), or designee, of a 
finding of probable noncompliance, pursuant to paragraph (o) of this 
section.
    (i) Filing of complaints against recipients. (1) DoD Components 
shall establish and publish in their supplementary guidelines procedures 
for the prompt processing and disposition of complaints against 
recipients, consistent with this section.
    (2) A DoD Component shall consider all complaints that: (i) Are 
filed with it within 180 days of the alleged discrimination or within a 
longer period of time if an extension is granted for good cause by the 
DoD Component with the approval of the ASD(MRA&L), or designee.
    (ii) Include the name, address, and telephone number, if any, of the 
complainant; the name and address of the recipient committing the 
alleged discrimination; a description of the acts or omissions 
considered to be discriminatory; and other pertinent information.
    (iii) Are signed by the complainant or the complainant's authorized 
representative (legal counsel or a person with power of attorney granted 
by the complainant).
    (3) DoD Components shall transmit a copy of each complaint filed 
with them to the ASD(MRA&L), or designee, within 10 calendar days after 
its receipt.
    (4) If the information in a complaint is incomplete, the DoD 
Component shall request the complainant to provide the additional 
information required. If the DoD Component does not receive this 
requested information within 30 calendar days of the date of the 
request, the case may be closed and the complainant so notified in 
writing.
    (5) If a complaint concerning a program or activity is filed with a 
DoD Component that does not have jurisdiction over it, the DoD Component 
shall refer the complaint to the ASD(MRA&L), or designee, and advise the 
complainant in writing of such referral. The ASD(MRA&L), or designee, 
then shall refer the complaint to the appropriate DoD Component and so 
notify the complainant in writing.
    (j) Investigation by DoD components. (1) DoD Components shall 
investigate complaints that involve recipients and that meet the 
standards described in paragraph (i) of this section, unless good cause 
for not investigating is stated in a written notification of the 
disposition of the complaint provided to the complainant.
    (2) If an investigation of a complaint is conducted, the DoD 
Component concerned shall maintain a case record that contains:
    (i) The name (last name, first, and middle initial), address (street 
address, city, State, and zip code), and telephone number of each person 
interviewed.
    (ii) Copies, transcripts, or summaries of pertinent documents.
    (iii) A reference to at least one program or activity conducted by 
the recipient and receiving Federal financial assistance disbursed by a 
DoD Component, and a description of the amount and nature of the 
assistance.
    (iv) A narrative report of the results of the investigation that 
contains references to relevant exhibits and other evidence that relates 
to the alleged violations.
    (k) Investigations by recipients. (1) A DoD Component may require or 
permit recipients to investigate complaints alleging violation of this 
part. In such cases, the DoD Component shall:
    (i) Ensure that the recipient investigates the complaints in 
accordance with the standards, procedures, and requirements prescribed 
in paragraph (j) of this section.
    (ii) Require the recipient to submit a written report of each 
complaint and investigation to the DoD Component.
    (iii) Retain a review responsibility over the investigation and 
disposition of each complaint.

[[Page 261]]

    (iv) Ensure that each complaint investigation is completed within 
180 calendar days of the receipt of the complaint by the proper DoD 
Component, unless an extension of time is granted for good cause by the 
ASD(MRA&L), or designee.
    (v) Require the recipient to maintain a log of all complaints filed 
against it, as described in Sec. 56.6(a)(1).
    (2) DoD Components that require or permit complaint investigations 
to be conducted by recipients shall review recipient complaint 
investigations pursuant to paragraphs (k) and (l) of this section.
    (l) Results of investigations. (1) Within 180 days of the receipt of 
a complaint, the DoD Component, recipient, or the ASD(MRA&L), or 
designee, shall give written notification:
    (i) Of the disposition of the complaint to the complainant and, as 
the case may be, to the recipient or DoD Component.
    (ii) To the complainant that within 30 calendar days of receipt of 
the written notification, the complainant may request that the 
ASD(MRA&L), or designee, review the findings in the notification 
pursuant to paragraph (m) of this section.
    (2) If the complaint investigation results in a determination by the 
DoD Component that a recipient is not complying with this part the DoD 
Component shall proceed as prescribed in paragraph (n) through (v) of 
this section. If the DoD Component determines that the recipient is in 
compliance, the DoD Component shall submit the complete case file to the 
ASD(MRA&L), or designee, within 15 calendar days after the notification 
of the disposition of the investigation to the complainant.
    (m) Reviewing completed investigations. (1) The ASD(MRA&L), or 
designee, may review all completed investigations.
    (2) The ASD(MRA&L), or designee, shall review the results of any 
investigation of a complaint if the complainant requests such a review 
pursuant to paragraph (l)(1)(ii) of this section.
    (3) After reviewing the results of an investigation, the ASD(MRA&L), 
or designee, may:
    (i) Find that no further investigation is necessary and approve the 
results of the investigation;
    (ii) Request further investigation by the DoD Component; or
    (iii) Require the DoD Component to take appropriate corrective 
action.
    (n) Effecting compliance. (1) When a compliance review or complaint 
investigation indicates that a recipient has violated this part, the 
applicable DoD Component's supplementary guidelines, or the assurances 
executed pursuant to paragraph (b) of this section, the responsible DoD 
Component or the ASD(MRA&L), or designee, shall attempt to effect 
compliance in accordance with paragraphs (o) and (p) of this section. 
The inability of a DoD Component to comply with any time frame 
prescribed by this part does not relieve a recipient of the 
responsibility for compliance with this part.
    (2) The DoD Component may require, when necessary to overcome the 
effects of discrimination in violation of this part, a recipient to take 
remedial action:
    (i) With respect to handicapped persons who are no longer 
participants in the recipient's program or activity but who were 
participants in the program or activity when such discrimination 
occurred.
    (ii) With respect to handicapped persons who would have been 
participants in the recipient's program or activity had the 
discrimination not occurred.
    (iii) With respect to handicapped persons presently in the 
recipient's program or activity, but not receiving full benefits or 
equal and integrated treatment within the program or activity.
    (o) Written notice.  After evaluating the investigative report, the 
DoD Component shall issue to the recipient and, pursuant to paragraph 
(n)(2) of this section to the ASD(MRA&L), or designee, a written notice 
that:
    (1) Describes the apparent violation and the corrective actions 
necessary to achieve compliance.
    (2) Extends an offer to meet informally with the recipient.
    (3) Informs the recipient that failure to respond to the notice 
within 15 calendar days of its receipt shall result in

[[Page 262]]

the initiation of enforcement procedures described in paragraphs (r) 
through (v), of this section.
    (p) Attempting to achieve voluntary compliance by recipients. (1) If 
a DoD Component issues a notice pursuant to paragraph (o) of this 
section, the DoD Component shall attempt to meet with the recipient and 
shall attempt to persuade it to take the steps necessary to achieve 
compliance with this part.
    (2) If a recipient agrees to take remedial steps to achieve 
compliance, the DoD Component shall require that the agreement be in 
writing and:
    (i) Be signed by the head of the DoD Component concerned, or 
designee, and by the principal official of the recipient.
    (ii) Specify the action necessary to achieve compliance.
    (iii) Be made available to the public upon request.
    (iv) Be subject to the approval of the ASD(MRA&L), or designee.
    (3) If satisfactory adjustment or a written agreement has not been 
achieved within 60 calendar days of the recipient's receipt of the 
notice issued pursuant to paragraph (o) of this section, the DoD 
Component shall notify the ASD(MRA&L), or designee, and state the 
reasons therefor.
    (4) The DoD Component shall initiate the enforcement actions 
prescribed in paragraphs (r) through (v) of this section if:
    (i) The recipient does not respond to a notice pursuant to paragraph 
(o) of this section, within 15 calendar days of its receipt and 
satisfactory adjustments are not made within 45 calendar days of the 
date of the recipient's response; or
    (ii) The DoD Component or the ASD (MRA&L) determines at any time 
within 90 days after the recipient receives a notice pursuant to 
paragraph (o) of this section, that, despite reasonable efforts, it is 
not likely that the recipient will comply promptly and voluntarily.
    (5) If, pursuant to paragraph (p)(4) of this section, the DoD 
Component initiates enforcement action, it also shall continue its 
attempts to persuade the recipient to comply voluntarily.
    (q) Imposing sanctions--(1) Sanctions available. If a DoD Component 
has taken action pursuant to paragraphs (o) and (p) of this section, the 
DoD Component may, by order, subject to paragraph (q)(2) and (q)(3) of 
this section:
    (i) Terminate, suspend, or refuse to grant or continue assistance to 
such recipient.
    (ii) Refer the case to the Department of Justice for the initation 
of enforcement proceedings at a Federal, State, or local level.
    (iii) Pursue any remedies under State or local law.
    (iv) Impose other sanctions upon consultation with the ASD (MRASL), 
or designee.
    (2) Terminating, suspending, or refusing to grant or continue 
assistance. A DoD Component may not terminate or refuse to grant or 
continue Federal financial assistance unless:
    (i) Such action has been approved by the Secretary of Defense.
    (ii) The DoD Component has given the recipient an opportunity for a 
hearing pursuant to the procedures set out in paragraph (r) of this 
section, and a finding of noncompliance has resulted.
    (iii) Thirty calendar days have elapsed since the Secretary of 
Defense has filed a written report describing the violation and action 
to be taken with the committees of the House of Representatives and 
Senate that have jurisdiction over the program or activity in which the 
violation of this part exists.
    (iv) Such action is limited to affect only the particular activity 
or program, or portion thereof, of the recipient where the violation 
exists.
    (3) Other sanctions. A DoD Component may not impose the sanctions 
set out in paragraphs (q)(1) (iii) and (iv) of this section, unless:
    (i) The DoD Component has given the recipient an opportunity for a 
hearing pursuant to paragraph (r) of this section, and a finding of 
noncompliance has resulted.
    (ii) The action has been approved by the Secretary of Defense.
    (iii) Ten calendar days have elapsed since the mailing of a notice 
informing the recipient of its continuing failure to comply with this 
part the action necessary to achieve compliance, and the sanction to be 
imposed.

[[Page 263]]

    (iv) During those 10 calendar days the DoD Component has made 
additional efforts to persuade the recipient to comply.
    (r) Hearings for recipients--(1) General. When, pursuant to 
paragraph (q)(2)(ii) of this section, an opportunity for a hearing is 
given to a recipient, the DoD Component involved shall follow the 
procedures prescribed in paragraphs (r)(2) through (r)(6) of this 
section.
    (2) Notice. The DoD Component concerned shall notify the recipient 
of the opportunity for a hearing by registered or certified mail, return 
receipt requested, when the recipient denies a tentative finding of 
noncompliance with this part.
    (i) The DoD Component shall ensure that the notice:
    (A) Describes the proposed sanctions to be imposed.
    (B) Cites the section of this part under which the proposed action 
is to be taken.
    (C) States the name and office of the DoD Component official who is 
responsible for conducting the hearing (hereafter referred to as the 
``responsible DoD official'').
    (D) Outlines the issues to be decided at the hearing.
    (E) Advises the recipient either of a date, not less than 20 
calendar days after the date that the notice is received, by which the 
recipient may request that the matter be scheduled for a hearing, or of 
a reasonable time and place of a hearing that is subject to change for 
good cause shown.
    (ii) When a time and place for a hearing are set, the DoD Component 
shall give the recipient and the complainant, if any, reasonable notice 
of such time and place.
    (3) Waiver of a hearing. A recipient may waive a hearing and submit 
to the responsible DoD official, in writing, information or arguments on 
or before the date stated pursuant to paragraph (r)(2)(i)(E) of this 
section.
    (i) A recipient waives its right to a hearing if it fails to request 
a hearing on or before a date stated pursuant to paragraph (r)(2)(i)(E) 
of this section, or fails to appear at a hearing that has been scheduled 
pursuant to that paragraph.
    (ii) If a recipient waives its right to a hearing under this 
section, the responsible DoD official shall decide the issues and render 
a final decision that is based on the information available and that 
conforms to the requirements of paragraph (s)(4) of this section.
    (4) Hearing examiner. Hearings shall be conducted by the responsible 
DoD official or by a hearing examiner designated by the official, 
provided that the hearing examiner shall be a field grade officer or 
civilian employee above the grade of GS-12 (or the equivalent) who is 
admitted to practice law before a Federal court or the highest court of 
a State, territory, commonwealth, or the District of Columbia.
    (5) Right to counsel. In all proceedings under this section, the 
recipient and the DoD Component may be represented by counsel. The 
representation of the recipient will not be at U.S. Government expense.
    (6) Procedures. Hearings authorized under this section shall be 
subject to the following: (i) Hearings shall be open to the public.
    (ii) Formal rules of evidence will not apply. The DoD Component 
concerned and the recipient shall be entitled to introduce all relevant 
evidence on the issues stated in the notice of hearing issued pursuant 
to paragraph (r)(2) of this section, and those designated by the 
responsible DoD official or the hearing examiner at the outset of or 
during the hearing. The responsible DoD official or hearing examiner, 
however, may exclude irrelevant, immaterial, or repetitious evidence.
    (iii) All witnesses may be examined or cross-examined, as the case 
may be, by each party.
    (iv) All parties shall have the opportunity to examine all evidence 
offered or admitted for the record.
    (v) A transcript of the proceedings shall be maintained in either 
electronic or typewritten form and made available to all parties.
    (s) Decisions--(1) Initial or proposed decisions by a hearing 
examiner. If a hearing is conducted by a hearing examiner who is 
designated by the responsible DoD official pursuant to paragraph (r)(4) 
of this section, the hearing examiner shall either:

[[Page 264]]

    (i) Make an initial decision, if so authorized, that conforms to the 
requirements of paragraph (s)(4) of this section; or
    (ii) Certify the entire record and submit to the responsible DoD 
official recommended findings and a proposed decision.
    (2) Review of initial decisions. Initial decisions made by a hearing 
examiner pursuant to paragraph (s)(1)(i) of this section, shall be 
reviewed as follows:
    (i) A recipient may file exceptions to an initial decision within 30 
calendar days of receiving notice of such initial decision. Reasons 
shall be stated for each exception.
    (ii) If the recipient does not file exceptions pursuant to paragraph 
(s)(2)(i) of this section, the responsible DoD official may notify the 
recipient within 45 calendar days of the initial decision that the 
responsible DoD official will review the decisions.
    (iii) If exceptions are filed pursuant to paragraph (s)(2)(i) of 
this section, or a notice of review is issued pursuant to paragraph 
(s)(2)(ii) of this section, the responsible DoD official shall review 
the initial decision and, after giving the recipient reasonable 
opportunity to file a brief or other written statement of its 
contentions, issue a final decision that addresses each finding and 
conclusion in the initial decision and each exception, if any.
    (iv) If the exceptions described in paragraph (s)(2)(i) of this 
section are not filed and the responsible DoD official does not issue 
the notice of review described in paragraph (s)(2)(ii) of this section, 
the initial decision of the hearing examiner shall constitute the final 
decision of the responsible DoD official.
    (3) Decisions by the responsible DoD official who conducts a hearing 
or receives a certified record. If a hearing examiner who is designated 
by the responsible DoD official certifies the entire record and submits 
recommended findings and a proposed decision to the responsible DoD 
official pursuant to paragraph (s)(1)(ii) of this section, or if the 
responsible DoD official conducts the hearing, after giving the 
recipient a reasonable opportunity to file a brief or other written 
statement of its contentions, the responsible DoD official shall render 
a final decision that conforms to paragraph (s)(4) of this section.
    (4) Contents of decisions. Each decision of a hearing examiner or 
responsible DoD official shall state all findings and conclusions and 
identify each violation of this part. The final decision may contain an 
order pursuant to paragraph (q) of this section, providing for the 
suspension or termination of or refusal to grant or continue all or some 
of the Federal financial assistance under the program or activity 
involved and contain terms, conditions, and other provisions that are 
consistent with and intended to achieve compliance with this Directive.
    (5) Notice of decisions and certifications. The responsible DoD 
official shall provide a copy of any certified record of a hearing and 
any initial or final decision to the recipient and the complainant, if 
any.
    (6) Review by the Secretary of Defense. The responsible DoD official 
shall transmit promptly any final decision that orders a suspension, 
termination, or denial of Federal financial assistance through the 
ASD(MRA&L) to the Secretary of Defense. The Secretary may;
    (i) Approve the decision;
    (ii) Vacate the decision; or
    (iii) Remit or mitigate any sanction imposed.
    (t) Restoring eligibility for financial assistance. (1) A recipient 
that is affected adversely by a final decision issued under paragraph 
(s) of this section, may at any time request the responsible DoD 
official to restore fully its eligibility to receive Federal financial 
assistance.
    (2) If the responsible DoD official determines that the information 
supplied by the recipient demonstrates that it has satisfied the terms 
and conditions of the order entered pursuant to paragraph (s) of this 
section, and that is complying with and has provided reasonable 
assurance that it will continue to comply with this part the responsible 
DoD official shall restore such eligibility immediately.
    (3) If the responsible DoD official denies a request for restoration 
of eligibility, the recipient may submit a written request for a hearing 
that states

[[Page 265]]

why it believes the responsible DoD official erred in denying the 
request. Following such a written request, the recipient shall be given 
an expeditious hearing under rules of procedure issued by the 
responsible DoD official to determine whether the requirements described 
in paragraph (t)(2) of this section, have been met. While any such 
proceedings are pending, the sanctions imposed by the order issued under 
paragraph (s) of this section, shall remain in effect.
    (u) Interagency cooperation and delegation. (1) When several 
recipients are receiving assistance for the same or similar purposes 
from a DoD Component and another Federal agency, the DoD Component shall 
notify the ASD (MRA&L), or designee. Such notification shall be in 
writing and shall contain:
    (i) A description of the programs and activities involved.
    (ii) A statement of the amount of money expended on the programs and 
activities in the previous and current fiscal year by the DoD Component 
and the agency.
    (iii) A list of the known primary recipients.
    (2) The ASD(MRA&L), or designee, shall attempt to negotiate with the 
Federal agency a written delegation agreement that designates the agency 
or the DoD Component as the primary agency for purposes of ensuring 
compliance with section 504 of Public Law 93-112, as amended, and this 
part depending upon which of them administers a larger financial 
assistance program with the common recipients and other relevant 
factors. If necessary, the agreement shall establish procedures to 
ensure the enforcement of section 504 of Public Law 93-112, as amended, 
and this part. The ASD(MRA&L), or designee, shall provide written 
notification to recipients of an agreement reached under this 
subsection.
    (3) When several recipients are receiving assistance for the same or 
similar purposes from two or more DoD Components, the DoD Components may 
negotiate a proposed written delegation agreement that:
    (i) Assigns responsibility for ensuring that the recipient complies 
with this part to one of the DoD Components.
    (ii) Provides for the notification to recipients and the responsible 
program officials of the DoD Components involved of the assignment of 
enforcement responsibility.
    (4) No delegation agreement reached in accordance with paragraph 
(u)(3) to this section shall be effective until it is approved by the 
ASD(MRA&L), or designee.
    (5) When possible, existing delegation agreements relating to title 
VI of the Civil Rights Act of 1964 shall be amended to provide for the 
enforcement of this part.
    (6) Any DoD Component conducting a compliance review or 
investigating a complaint of an alleged violation by a recipient shall 
notify any other affected agency or DoD Component through the 
ASD(MRA&L), or designee, upon discovery that the agency or DoD Component 
has jurisdiction over the program or activity in question and shall 
subsequently inform it of the finding made. Such reviews or 
investigations may be conducted on a joint basis.
    (7) When a compliance review or complaint investigation under this 
part reveals a possible violation of Executive Order 11246, titles VI or 
VII of the Civil Rights Act of 1964, or any other Federal law, the DoD 
Component shall notify the appropriate agency, through the ASD(MRA&L), 
or designee.
    (v) Coordination with sections 502 and 503. (1) DoD Components shall 
use DoD 4270.1-M and Department of the Army, Office of the Chief of 
Engineers, Manual EM 1110-1-103, in developing requirements for the 
accessibility of facilities. If DoD Components encounter issues with 
respect to section 502 of the Rehabilitation Act of 1973, as amended, 
that are not covered by these publications, the ASD(MRA&L), or designee, 
may be consulted. If necessary, the ASD(MRA&L), or designee, shall 
consult with the Architectural and Transportation Barriers Compliance 
Board in resolving such problems.
    (2) DoD Components may advise recipients to consult directly with 
the Architectural and Transportation Barriers Compliance Board in 
developing accessibility criteria.

[[Page 266]]

    (3) DoD Components shall coordinate enforcement actions relating to 
the accessibility of facilities with the Architectural and 
Transportation Barriers Compliance Board and shall notify the 
ASD(MRA&L), or designee, of such coordination.
    (4) If a recipient is also a Federal contractor subject to section 
503 of the Rehabilitation Act of 1973, as amended, and the regulations 
thereunder (41 CFR part 60-741) and if a DoD Component has reason to 
believe that the recipient is in violation thereof, the DoD Component 
shall coordinate enforcement actions with the Department of Labor, 
Office of Federal Contract Compliance Programs. The DoD Component shall 
notify the ASD(MRA&L), or designee, of such coordination.



Sec. 56.10  Ensuring compliance with this part in programs and activities conducted by the Department of Defense.

    (a) Supplementary guidelines. (1) Whenever necessary, the 
ASD(MRA&L), or designee, shall publish supplementary guidelines for 
programs and activities that are conducted by DoD Components and that 
are subject to this Directive. Prior to their issuance, the ASD(MRA&L), 
or designee, shall submit supplementary guidelines prepared pursuant to 
this subsection to the Coordination and Review Section, Civil Rights 
Division, Department of Justice, for review.
    (2) The heads of DoD Components, or designees, shall be responsible 
for keeping the supplementary guidelines described in this section 
current and accurate. When a DoD Component head determines that a 
program or activity should be added to or deleted from the guidelines, 
that official shall notify the ASD(MRA&L), or designee, in writing.
    (b) Staff responsibilities. The ASD(MRA&L), or designee, shall 
determine DoD Component compliance with this part as it pertains to 
programs and activities that are conducted by DoD Components and are 
subject to this part.
    (c) Filing of complaints. (1) Complaints of discrimination in a 
program or activity conducted by a DoD Component may be filed directly 
with the ASD(MRA&L), or designee.
    (2) DoD Components shall develop procedures, such as posters or 
other devices, to notify participants in the programs and activities 
listed in Sec. 56.7(c) of their right to be free of discrimination 
because of handicap in those programs and activities and of their right 
to file complaints of discrimination with the ASD(MRA&L), or designee.
    (d) Investigations of complaints. (1) The ASD(MRA&L), or designee, 
shall investigate complaints of discrimination in programs and 
activities that are conducted by DoD Components and are subject to this 
part.
    (2) A case record of each investigation shall be compiled in 
accordance with Sec. 56.9(j)(2).
    (e) Results of investigations. If the complaint investigation 
results in a determination by the ASD(MRA&L), or designee, that a DoD 
Component's program or activity is not complying with Sec. 56.9, the 
ASD(MRA&L), or designee, shall proceed as prescribed in Sec. 56.9 (n) 
through (v). Hearings prescribed under Sec. 56.9(r) however, need not be 
conducted. If the ASD(MRA&L), or designee, determines that the DoD 
Component is in compliance, the ASD(MRA&L), or designee, shall notify 
the complainant within 15 calendar days of such determination.
    (f) Written notice. If an investigative report concludes that there 
has been a violation of this part in a program or activity conducted by 
a DoD Component and the ASD(MRA&L), or designee, accepts that 
conclusion, that official shall issue to the head of the DoD Component a 
written notice describing the apparent violation, the corrective actions 
necessary to achieve compliance, and a suspense date for completion of 
the corrective actions.
    (g) Effecting compliance. When necessary to overcome the effects of 
discrimination in violation of this part the ASD(MRA&L), or designee, 
may require a DoD Component to take remedial action similar to that in 
Sec. 56.9(n)(2).
    (h) Employment. DoD Components that conduct Federal programs or 
activities covered by this part that involve employment of civilian 
persons to conduct such a program or activity must comply with section 
501 of the Rehabilitation Act of 1973, as amended,

[[Page 267]]

and the implementing rules and regulations of the EEOC.



PART 57--PROVISION OF EARLY INTERVENTION AND SPECIAL EDUCATION SERVICES TO ELIGIBLE DOD DEPENDENTS IN OVERSEAS AREAS--Table of Contents




Sec.
57.1   Purpose.
57.2   Applicability and scope.
57.3   Definitions.
57.4   Policy.
57.5   Responsibilities.
57.6  Procedures.

Appendix A to Part 57--Procedures for the Provision of Early 
          Intervention Services for Infants and Toddlers with 
          Disabilities and their Families
Appendix B to Part 57--Procedures for Education Programs and Services 
          for Children with Disabilities, Aged 3 to 21, Inclusive
Appendix C to Part 57--The National Advisory Panel (NAP) on the 
          Education of Dependents with Disabilities
Appendix D to Part 57--DoD Coordinating Committee on Early Intervention, 
          Special Education, and Medically Related Services
Appendix E to Part 57--DoD Inter-Component Coordinating Council (ICC) on 
          Early Intervention
Appendix F to Part 57--Mediation and Hearing Procedures

    Authority: 20 U.S.C. 921 and 1400.

    Source: 62 FR 2566, Jan. 17, 1997, unless otherwise noted.



Sec. 57.1  Purpose.

    This part:
    (a) Implement policy and update responsibilities and procedures 
under 20 U.S.C. 921-932, 20 U.S.C. 1400 et seq., DoD Directive 1342.6 
\1\, and DoD Directive 1342.13 \2\ for providing the following:
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
    \2\ See footnote 1 to Sec. 57.1(a).
---------------------------------------------------------------------------

    (1) A free appropriate public education (FAPE) for children with 
disabilities who are eligible to enroll in the Department of Defense 
Dependent Schools (DoDDS).
    (2) Early intervention services for infants and toddlers birth 
through age 2 years who, but for their age, would be eligible to enroll 
in the DoDDS under DoD Directive 1342.13.
    (3) A comprehensive and multidisciplinary program for early 
intervention services for infants and toddlers with disabilities and 
their families.
    (b) Establishes a National Advisory Panel (NAP) on Education for 
Children with Disabilities, ages 3 to 21, inclusive, and a DoD Inter-
Component Council (ICC) on Early Intervention, in accordance with DoD 
Directive 5105.4 \3\.
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 57.1(a).
---------------------------------------------------------------------------

    (c) Establishes a DoD Coordinating Committee (DoD-CC) on Early 
Intervention, Special Education, and Medically Related Services (MRS).
    (d) Authorizes implementing instructions consistent with DoD 5025.1-
M \4\, and DoD forms consistent with DoD 83201-M \5\, DoD 8910.1-M \6\, 
and DoD Instruction 7750.7 \7\.
---------------------------------------------------------------------------

    \4\ See footnote 1 to Sec. 57.1(a).
    \5\ See footnote 1 to Sec. 57.1(a).
    \6\ See footnote 1 to Sec. 57.1(a).
    \7\ See footnote 1 to Sec. 57.1(a).
---------------------------------------------------------------------------



Sec. 57.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense, the Military 
Departments, the Chairman of the Joint Chiefs of Staff, the Unified 
Combatant Commands, the Inspector General of the Department of Defense, 
the Defense Agencies, and the DoD Field Activities (hereafter referred 
to collectively as ``the DoD Components'').
    (b) Does not apply to schools operated by the Department of defense 
in the United States, the District of Columbia, the Commonwealth of 
Puerto Rico, the Commonwealth of the Northern Marianna Islands, and the 
possessions of the United States (excluding the Trust Territory of the 
Pacific Islands and Midway Islands).
    (c) Applies to infants, toddlers, and children receiving or entitled 
to receive early intervention services or special educational 
instruction and related services from the Department of Defense, and 
their parents.



Sec. 57.3  Definitions.

    Area superintendent. The Superintendent of a DoDDS area, or 
designee.

[[Page 268]]

    Assessment. Techniques, procedures, and/or instruments used to 
measure the individual components of an evaluation.
    Assistive technology device. Any item, piece of equipment, or 
product system that is used to increase, maintain, or improve functional 
capabilities of children with disabilities.
    Assistive technology service. Any service that directly assists an 
individual with a disability in the selection, acquisition, or use of an 
assistive technology device. That term includes the following:
    (1) The evaluation of the needs of an individual with a disability, 
including a functional evaluation in the individual's customary 
environment.
    (2) Purchasing, leasing, or otherwise providing for the acquisition 
of assistive technology devices by individuals with disabilities.
    (3) Selecting, designing, fitting, customizing, adapting, applying, 
maintaining, repairing, or replacing assistive technology devices.
    (4) Coordinating and using other therapies, interventions, or 
services with assistive technology devices, such as those associated 
with existing educational and rehabilitative plans and programs.
    (5) Training or technical assistance for an individual with 
disabilities, or, the family of an individual with disabilities.
    (6) Training or technical assistance for professionals (including 
individuals providing educational rehabilitative services), employers, 
or other individuals who provide services to employ, or are otherwise 
substantially involved in the major life functions of an individual with 
a disability.
    Audiology. A service that includes the following:
    (1) Identification of children with auditory impairments.
    (2) Determination of the range, nature, and degree of hearing loss, 
and communication functions including referral for medical or other 
professional attention for the habilitation of hearing.
    (3) Provision of habilitative activities, such as language 
habilitation, auditory training, speech-reading (lip-reading), hearing 
evaluation, and speech conservation.
    (4) Creation and administration of programs for the prevention of 
hearing loss.
    (5) Counseling and guidance of pupils for the prevention of hearing 
loss.
    (6) Determination of the child's need for group and individual 
amplification, selecting and fitting an aid, and evaluating the 
effectiveness of amplification.
    Autism. A development disability significantly affecting verbal and 
nonverbal communication and social interaction generally evident before 
age 3 that adversely affects educational performance. That term does not 
include a child with characteristics of the disability termed ``serious 
emotional disturbance.''
    Case study committee (CSC). (1) A school-level team comprised of, 
among others, the principal, other educators, parents, and MRS providers 
who do the following:
    (i) Oversee screening and referral of children who may require 
special education.
    (ii) Oversee the multidisciplinary evaluation of such children.
    (iii) Determine the eligibility of the student for special education 
and related services.
    (iv) Formulate an individualized education curriculum reflected in 
an Individualized Education Program (IEP), in accordance with this part.
    (v) Monitor the development, review, and revision of IEPs.
    (2) In addition to the required members of the CSC, other membership 
will vary depending on the purpose of the meeting. An area CSC, 
appointed by the DoDDS Area Superintendent, acts in the absence of a 
school CSC. Members of an area CSC may be assigned to augment a school 
CSC. The area CSC must have at least two members besides the parent. One 
of the DoDDS members must have the authority to commit DoDDS resources; 
one shall be qualified to provide, or supervise the provision of special 
education. Other members may be selected from the following groups:
    (i) DoDDS regular education personnel.

[[Page 269]]

    (ii) DoDDS special education personnel.
    (iii) MRS personnel.
    Child-find. The ongoing process used by the DoDDS, the Military 
Departments, and the other DoD Components to seek and identify children 
from birth to age 21, inclusive, who may require early intervention 
services or special education and related services. Child-find 
activities include the dissemination of information to the public, the 
identification and screening of children, and the use of referral 
procedures.
    Children with disabilities (ages 3 To 21, inclusive). Children, 
before graduation from high school or completion of the General 
Education Degree, who have one or more impairments, as determined by a 
CSC and who need special education and related services.
    Consent. That term means the following:
    (1) The parent is fully informed of all information about the 
activity for which consent is sought in the native language or in 
another mode of communication, if necessary.
    (2) The parent understands and agrees in writing to the 
implementation of the activity for which permission is sought. That 
consent describes the activity, lists the child's records (if any) to be 
released outside the Department of Defense, and specifies to whom the 
records shall be sent. The signed consent acknowledges the parent's 
understanding that the parental consent is voluntary and may be revoked 
at any time.
    Counseling service. A service provided by a qualified social worker, 
psychologist, guidance counselor, or other qualified personnel.
    Deaf-blindness. Concomitant hearing and visual impairments. That 
disability causes such severe communication, developmental, and 
educational problems that it cannot be accommodated in special education 
programs solely for children with deafness or blindness.
    Deafness. A severe hearing loss or deficit that impairs a child's 
ability to process linguistic information through hearing, with or 
without amplification, and affects the educational performance 
adversely.
    Developmental delay. That term means the following:
    (1) A significant discrepancy in the actual functioning of an 
infant, toddler, or child, birth through age 5, when compared with the 
functioning of a nondisabled infant, toddler, or child of the same 
chronological age in any of the following areas: physical, cognitive, 
communication, social or emotional, and adaptive developmental as 
measured using standardized evaluation instruments and confirmed by 
clinical observation and judgment.
    (2) High probability for developmental delay. An infant or toddler, 
birth through age 2, with a diagnosed physical or mental condition, such 
as chromosomal disorders and genetic syndromes, that places the infant 
or toddler at substantial risk of evidencing a developmental delay 
without the benefit of early intervention services.
    Early identification. The implementation of a formal plan for 
identifying a disability as early as possible in a child's life.
    Early intervention services. (1) Developmental services that meet 
the following criteria:
    (i) Are provided under the supervision of a Military medical 
Department.
    (ii) Are provided using Military Health Services System resources at 
no cost to the parents. Parents may be charged in those instances where 
Federal law provides for a system of payments by families including a 
schedule of sliding fees, if any, (and incidental fees identified in 
Service guidance) that are normally charged to infants, toddlers, and 
children without disabilities or to their parents.
    (iii) Are designed to meet the developmental needs of an infant or 
toddler with a disability in any one or more of the following areas:
    (A) Physical.
    (B) Cognitive.
    (C) Communication.
    (D) Social or emotional.
    (E) Adaptive development.
    (iv) Meet the standards developed or adopted by the Department of 
Defense.
    (v) Are provided by qualified personnel including early childhood 
special

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educators, speech and language pathologists and audiologists, 
occupational therapists, physical therapists, psychologists, social 
workers, nurses, nutritionists, family therapists, orientation and 
mobility specialists, and pediatricians and other physicians.
    (vi) Maximally, are provided in natural environments including the 
home and community settings where infants and toddlers without 
disabilities participate.
    (vii) Are provided in conformity with an Individualized Family 
Service Plan (IFSP).
    (2) Developmental services include, but are not limited to, the 
following services: family training, counseling, and home visits; 
special instruction; speech pathology and audiology; occupational 
therapy; physical therapy; psychological services; service coordination 
services; medical services only for diagnostic or evaluation purposes; 
early identification, screening and assessment services; vision 
services; and social work services. Also included are assistive 
technology devices and assistive technology services; health services 
necessary to enable the infant or toddler to benefit from the above 
early intervention services; and transportation and related costs 
necessary to enable an infant or toddler and the family to receive early 
intervention services.
    Eligible. The term refers to children who meet the age, command 
sponsorship, and dependency requirements established by the DDEA, as 
amended, 20 U.S.C. 921 et seq. and DoD Directive 1342.13. When those 
conditions are met, children without disabilities, ages 5 to 21, and 
children with disabilities, ages 3 to 21, inclusive, are authorized to 
receive educational instruction from the DoDDS. Additionally, an 
eligible infant or toddler with disabilities is a child from birth 
through age 2 years who meets all of the DoDDS eligibility requirements 
except for the age requirement. In school year 1994 through 1995, 
multidisciplinary assessments, IFSPs, and case management services shall 
be required and beginning in school year 1995 through 1996, an eligible 
infant or toddler is entitled to receive early intervention services, in 
accordance with 20 U.S.C. 1400 et seq.
    Evaluation. The synthesis of assessment information by a 
multidisciplinary team used to determine whether a particular child has 
a disability, the type and extent of the disability, and the child's 
eligibility to receive early intervention or special education and/or 
related services.
    Family training, counseling, and home visits. Services provided by 
social workers, psychologists, and other qualified personnel to assist 
the family of an infant or toddler eligible for early intervention 
services. Those services assist a family in understanding the special 
needs of the child and enhancing the child's development.
    Free appropriate public education (FAPE). Special education and 
related services that do the following:
    (1) Are provided at no cost to parents of a child with a disability, 
and are under the general supervision and direction of the DoDDS.
    (2) Are provided in the least restrictive environment at a 
preschool, elementary, or secondary school.
    (3) Are provided in conformity with an IEP.
    (4) Meet the requirements of this part.
    Functional vocational evaluation. A student-centered appraisal 
process for vocational development and career decision making. It allows 
students, educators, and others to gather information about such 
development and decision making. Functional vocational evaluation 
activities for transitional, vocational, and career planning; 
instructional goals; objectives; and implementation.
    Health services. Services necessary to enable an infant or toddler 
to benefit from the other early intervention services being received 
under this part. That term includes the following:
    (1) Services such as clean intermittent catheterization, tracheotomy 
care, tube feeding, changing of dressings or colostomy collection bags, 
and other health services.
    (2) Consultation by physicians with other service providers about 
the special healthcare needs of infants and toddlers with disabilities 
that shall need to be addressed in the course of providing other early 
intervention services.

[[Page 271]]

    (3) That term does not include the following:
    (i) Services that are surgical or solely medical.
    (ii) Devices necessary to control or treat a medical condition.
    (iii) Medical or health services routinely recommended for all 
infants or toddlers.
    Hearing impairment. An impairment in hearing, whether permanent or 
fluctuating, which adversely affects a child's educational performance, 
but is not included under deafness.
    Independent evaluation. An evaluation conducted by a qualified 
examiner who is not employed by the DoDDS.
    Individualized education program (IEP). A written document defining 
specially designed instruction for a student with a disability, ages 3 
to 21, inclusive. That document is developed and implemented, in 
accordance with this part.
    Individualized family service plan (IFSP). A written document for an 
infant or toddler, age birth through 2, with a disability and the family 
of such infant or toddler that is based on a multidisciplinary 
assessment of the unique needs of the child and concerns and priorities 
of the family, and identifies the early intervention and other services 
appropriate to meet such needs, concerns, and priorities.
    Infants and toddlers with disabilities. Children, ages birth through 
2, who need early intervention services because they:
    (1) Are experiencing a developmental delay; or,
    (2) Have a diagnosed physical or mental condition that has high 
probability of resulting in a developmental delay.
    Inter-component. Cooperation among DoD organizations and programs, 
ensuring coordination and integration of services to infants, toddlers, 
children with disabilities and to their families.
    Medical services. Those evaluative, diagnostic, therapeutic, and 
supervisory services provided by a licensed and /or credentialed 
physician to assist CSCs and to implement IEPs. Medical services include 
diagnosis, evaluation, and medical supervision of related services that, 
by statute, regulation, or professional tradition, are the 
responsibility of a licensed and credentialed physician.
    Medically related services. (1) Medical services (as defined in 
definition ``Medical services'') are those services provided under 
professional medical supervision, which are required by a CSC to 
determine a student's eligibility for special education and, if the 
student is eligible, the special education and related services required 
by the student under this part.
    (2) Direct or indirect services under the development or 
implementation of an IEP necessary for the student to benefit from the 
educational curriculum. Those services may include medical services for 
diagnostic or evaluative purpose, social work, community health nursing, 
dietary, occupational therapy, physical therapy, audiology, 
ophthalmology, and psychological testing and therapy.
    Meetings. All parties attending a meeting to determine eligibility 
or placement of a child shall appear personally at the meeting site on 
issuance of written notice and establishment of a date convenient to the 
concerned parties. When a necessary participant is unable to attend, 
electronic communication suitable to the occasion may be used to involve 
the unavailable party. Parents generally shall be responsible for the 
cost of travel to personally attend meetings about the eligibility or 
placement of their child.
    Mental retardation. Significantly subaverage general intellectual 
functioning, existing concurrently with deficits in adaptive behavior. 
That disability is manifested during the developmental period and 
adversely affects a child's educational performance.
    Multidisciplinary. The involvement of two or more disciplines or 
professions in the integration and coordination of services, including 
evaluation and assessment activities, and development of an IFSP or an 
IEP.
    Native language. When used with reference to an individual of 
limited English proficiency, the home language normally used by such 
individuals, or in the case of a child, the language normally used by 
the parent of the child.
    Natural environments. Settings that are natural or normal (e.g., 
home or

[[Page 272]]

day care setting) for the infant, toddler, or child's same-age peers who 
have no disability.
    Non-DoDDS placement. An assignment by the DoDDS of a child with a 
disability to a non-DoDDS school or facility.
    Non-DoDDS school or facility. A public or private school or other 
institution not operated by the DoDDS.
    Nutrition services. Those services to infants and toddlers include 
the following:
    (1) Conducting individual assessments in nutritional history and 
dietary intake; anthropometric, biochemical, and clinical variables; 
feeding skills and feeding problems; and food habits and food 
preferences.
    (2) Developing and monitoring plans to address the nutritional needs 
of infants and toddlers eligible for early intervention services.
    (3) Making referrals to community resources to carry out nutrition 
goals.
    Occupational therapy. That term includes services to address the 
functional needs of children (birth to age 21, inclusive) related to 
adaptive development; adaptive behavior and play; and sensory, motor, 
and postural development. Those services are designed to improve the 
child's functional ability to perform tasks in home, school, and 
community settings, and include the following:
    (1) Identification, assessment, and intervention.
    (2) Adaption of the environment and selection, design, and 
fabrication of assistive and orthotic devices to help development and 
promote the acquisition of functional skills.
    (3) Prevention or minimization of the impact of initial or future 
impairment, delay in development, or loss of functional ability.
    Orthopedic impairment. A severe physical impairment that adversely 
affects a child's educational performance. That term includes congenital 
impairments such as club foot or absence of some member; impairments 
caused by disease, such as poliomyelitis and bone tuberculosis, and 
impairments from other causes such as cerebra palsy, amputations, and 
fractures or burns causing contractures.
    Other health impairment. Limited strength, vitality, or alterness 
due to chronic or acute health problems that adversely affect a child's 
educational performance. Such impairments include heart condition, 
tuberculosis, rheumatic fever, nephritis, asthma, sickle cell anemia, 
hemophilia, seizure disorder, lead poisoning, leukemia, diabetes, or 
attention deficit disorder.
    Parent. The biological father or mother of a child; a person who, by 
order of a court of competent jurisdiction, has been declared the father 
or mother of a child by adoption; the legal guardian of a child; or a 
person in whose household a child resides, if such person stands in loco 
parentis to that child and contributes at least one-half of the child's 
support.
    Parent counseling and training. A service to assist parents in 
understanding the special needs of their child's development and by 
providing them with information on child development and special 
education.
    Personally identifiable information. Information that would make it 
possible to identify the infant, toddler, or child with reasonable 
certainty. Examples include name, parent's name, address, social 
security number, or a list of personal characteristics.
    Physical therapy. That term includes services to children (birth to 
age 21, inclusive) to address the promotion of sensorimotor function 
through enhancement of musculoskeletal status, neurobehavioral 
organization, perceptual and motor development, cardiopulmonary status, 
and effective environmental adaption. Those services include the 
following:
    (1) Screening, evaluation, and assessment to identify movement 
dysfunction.
    (2) Obtaining, interpreting, and integrating information to 
appropriate program planning to prevent, alleviate, or compensate for 
movement dysfunction and related functional problems.
    (3) Providing individual and group services or treatment to prevent, 
alleviate, or compensate for movement dysfunction and related functional 
problems.
    Primary referral source. Parents and the DoD Components, including 
child development centers, pediatric clinics, and newborn nurseries, 
that suspect an infant or toddler has a disability and

[[Page 273]]

brings the child to the attention of the EIP.
    Psychological services. A service that includes the following:
    (1) Administering psychological and educational tests and other 
assessment procedures.
    (2) Interpreting test and assessment results.
    (3) Obtaining, integrating, and interpreting information about a 
child's behavior and conditions to learning.
    (4) Consulting with other staff members, including service 
providers, to plan programs to meet the special needs of children, as 
indicated by psychological tests, interviews, and behavioral 
evaluations.
    (5) Planning and managing a program of psychological services, 
including psychological counseling for children and parents, family 
counseling, consultation on child development, parent training, and 
education programs.
    Public awareness program. Activities or print materials focusing on 
early identification of infants and toddlers with disabilities. 
Materials may include information prepared and disseminated by a 
military medical department to all primary referral sources and 
information for parents on the availability of early intervention 
services. Procedures to determine the availability of information on 
early intervention services to parents are also included in that 
program.
    Qualified. A person who meets the DoD-approved or recognized 
certification, licensing, or registration requirements or other 
comparable requirements in the area in which the person provides special 
education or related services or early intervention services to an 
infant, toddler, or child with a disability.
    Recreation. A related service that includes the following.
    (1) Assessment of leisure activities.
    (2) Therapeutic recreational activities.
    (3) Recreational programs in schools and community agencies.
    (4) Leisure education.
    Rehabilitation counseling. Services provided by a rehabilitation 
counselor or other qualified personnel in individual or group sessions 
that focus specifically on career development, employment preparation, 
achieving independence, and integration in the workplace and community 
of the student with a disability.
    Related services. Transportation and such developmental, corrective, 
and other supportive services as required to assist a child, age 3 to 
21, inclusive, with a disability to benefit from special education under 
the child's IEP. The term includes speech therapy and audiology, 
psychological services, physical and occupational therapy, recreation, 
early identification and assessment of disabilities in children, 
counseling services, and medical services for diagnostic or evaluative 
purposes. That term also includes rehabilitation counseling services, 
school health services, social work services in schools, and parent 
counseling. The sources for those services are school, community, and 
medical treatment facilities (MTFs).
    School health services. Services provided by a qualified school 
nurse or other qualified person.
    Separate facility. A school or a portion of a school, regardless of 
whether it is operated by the DoDDS, attended exclusively by children 
with disabilities.
    Serious emotional disturbance. A condition confirmed by clinical 
evaluation and diagnosis and that, over a long period of time and to a 
marked degree, adversely affect educational performance, and exhibits 
one or more of the following characteristics:
    (1) Inability to learn that cannot be explained by intellectual, 
sensory, or health factors.
    (2) Inability to build or maintain satisfactory interpersonal 
relationships with peers and teachers.
    (3) Inappropriate types of behavior under normal circumstances.
    (4) A tendency to develop physical symptoms or fears associated with 
personal or school problems.
    (5) A general pervasive mood of unhappiness or depression. Includes 
children who are schizophrenic, but does not include children who are 
socially maladjusted unless it is determined they are seriously 
emotionally disturbed.
    Service coordination. Activities of a service coordinator to assist 
and enable an infant or toddler and the family to

[[Page 274]]

receive the rights, procedural safeguards, and services that are 
authorized to be provided under the DoD EIP. Those activities include 
the following:
    (1) Coordinating the performance of evaluation and assessments.
    (2) Assisting families to identify their resources, concerns, and 
priorities.
    (3) Facilitating and participating in the development, review, and 
evaluation of IFSPs.
    (4) Assisting in identifying available service providers.
    (5) Coordinating and monitoring the delivery of available services.
    (6) Informing the family of support or advocacy services.
    (7) Coordinating with medical and health providers.
    (8) Facilitating the development of a transition plan to preschool 
services.
    Service provider. Any individual who provides services listed in an 
IEP or an IFSP.
    Social work services in schools. A service that includes the 
following:
    (1) Preparing a social or developmental history on a child with a 
disability.
    (2) Counseling a child and the family on a group or individual 
basis.
    (3) Working with those problems in a child's home, school, or 
community that adversely affect adjustment in school.
    (4) Using school and community resources to enable a child to 
receive maximum benefit from the educational program.
    Special education. Instruction and related services for which a 
child, age 3 to 21, inclusive, becomes entitled when a CSC determines a 
child's educational performance is adversely affected by one or more 
disabling conditions.
    (1) Special education is specially designed instruction, including 
physical education, which is provided at no cost to the parent or 
guardians to meet the unique needs of a child with a disability, 
including instruction conducted in the classroom, in the home, in 
hospitals and institutions, and in other settings.
    (2) That term includes speech therapy or any other related service 
if the service consists of specially designed instruction, at no cost to 
the parents, to meet the unique needs of a child with a disability.
    (3) That term also includes vocational education if it consists of 
specially designed instruction, at no cost to the parents, to meet the 
unique needs of a child with a disability.
    (4) At no cost. For a child eligible to attend the DoDDS without 
paying tuition, specially designed instruction and related services are 
provided without charge. Incidental fees normally charged to nondisabled 
students or their parents as a part of the regular educational program 
may be imposed.
    (5) Physical education. The development of the following:
    (i) Physical and motor fitness.
    (ii) Fundamental motor skills and patterns.
    (iii) Skills in aquatics, dance, and individual and group games and 
sports, including intramural and lifetime sports.
    (iv) A program that includes special physical education, adapted 
physical education, movement education, and motor development.
    (6) Vocational education. Organized educational programs for the 
preparation of individuals for paid or unpaid employment or for 
additional preparation for a career requiring other than a baccalaureate 
or advanced degree.
    Special instruction. That term includes the following:
    (1) The design of learning environments and activities to promote 
acquisition of skills in a variety of developmental areas, including 
cognitive processes and social interaction.
    (2) Curriculum planning, including the planned interaction of 
personnel, materials, time, and space, that leads to achieving the 
outcomes in an IEP or an IFSP.
    (3) Providing families with information, skills, and support to 
enhance skill development.
    (4) Working with a child to enhance development and cognitive 
processes.
    Specific learning impairment. A disorder in one or more of the basic 
psychological processes involved in understanding or in using spoken or 
written language that may manifest itself as an imperfect ability to 
listen, think, speak, read, write, spell, remember, or do mathematical 
calculations. That

[[Page 275]]

term includes such conditions as perceptual disabilities, brain injury, 
minimal brain dysfunction, dyslexia, and developmental aphasia. The 
term, commonly called, ``specific learning disability,'' does not 
include learning problems that are primarily the result of visual, 
hearing, or motor disabilities; mental retardation; emotional 
disturbance; or environmental, cultural, or economic differences.
    Speech and language impairments. A communication disorder, such as 
stuttering, impaired articulation, voice impairment, or a disorder in 
the receptive or expressive areas of language that adversely affects a 
child's educational performance.
    Speech therapy. That related service includes the following:
    (1) Identification of children with communicative or oropharyngeal 
disorders and delays in development of communication skills.
    (2) Diagnosis and appraisal of specific speech or language 
impairments.
    (3) Referral for medical or other professional attention to correct 
or habilitate speech or language impairments.
    (4) Provision of speech and language services for the correction, 
habilitation, and prevention of communicative impairments.
    (5) Counseling and guidance of children, parents, and teachers for 
speech and language impairments.
    Transition services. That term means the following:
    (1) A coordinated set of activities for a student that may be 
required to promote movement from early intervention, preschool, and 
other educational programs into different educational settings or 
programs.
    (2) For students 14 years of age and older, transition services are 
designed in an outcome-oriented process which promotes movement from 
school to postschool activities; including, post-secondary education, 
vocational training, integrated employment; and including supported 
employment, continuing and adult education, adult services, independent 
living, or community participation. The coordinated set of activities 
shall be based on the individual student's needs, considering the 
student's preferences and interests, and shall include instruction, 
community experiences, the development of employment and other 
postschool adult living objectives, and acquisition of daily living 
skills and functional vocational evaluation.
    Transportation. A service that includes the following:
    (1) Services rendered under the IEP of a child with a disability:
    (i) Travel to and from school and between schools, including travel 
necessary to permit participation in educational and recreational 
activities and related services.
    (ii) Travel in and around school buildings.
    (iii) Specialized equipment, including special or adapted buses, 
lifts, and ramps, if required to provide transportation for a child with 
a disability.
    (2) Transportation and related costs for early intervention services 
include the cost of travel (e.g., mileage or travel by taxi, common 
carrier, or other means) and other costs (e.g., tolls and parking 
expenses) that are necessary to enable an eligible child and the family 
to receive early intervention services.
    Traumatic brain injury. An acquired injury to the brain caused by an 
external physical force resulting in total or partial functional 
disability or psychosocial impairment that adversely affects educational 
performance. That term includes open or closed head injuries resulting 
in mild, moderate, or severe impairments in one or more areas including 
cognition, language, memory, attention, reasoning, abstract thinking, 
judgment, problem solving, sensory, perceptual and motor abilities, 
psychosocial behavior, physical function, information processing, and 
speech. That term does not include brain injuries that are congenital or 
degenerative, or brain injuries that are induced by birth trauma.
    Vision services. Services necessary to habilitate or rehabilitate 
the effects of sensory impairment resulting from a loss of vision.
    Visual impairment. An impairment of vision that, even with 
correction, adversely affects a child's educational performance. That 
term includes both partially seeing and blind children.



Sec. 57.4  Policy.

    It is DoD policy that:

[[Page 276]]

    (a) Eligible infants and toddlers with disabilities and their 
families shall be entitled to receive early intervention services 
consistent with Appendix A to this part.
    (b) Eligible children with disabilities, ages 3 to 21, inclusive, 
shall be provided a FAPE in the least restrictive environment, 
consistent with Appendix B to this part.
    (c) Parents of eligible infants, toddlers, and children with 
disabilities from birth to age 21, inclusive, shall be full participants 
in early intervention and special education services.



Sec. 57. 5  Responsibilities.

    (a) The Under Secretary of Defense for Personnel and Readiness 
shall:
    (1) Establish a NAP consistent with Appendix C to this part.
    (2) Establish and chair, or designate a ``Chair,'' of the DoD-CC on 
Early Intervention, Special Education, and MRS consistent with Appendix 
D to this part.
    (3) Establish and chair, or designate a ``Chair,'' of the DoD Inter-
Component Coordinating Council (ICC) on Early Intervention consistent 
with Appendix E to this part.
    (4) Ensure compliance with this part in the provision of early 
intervention services, special education, and related services through 
the DoD-CC, in accordance with DoD Instruction 1342.14 \8\ and other 
appropriate guidances.
---------------------------------------------------------------------------

    \8\ See footnote 1 to Sec. 57.1(a).
---------------------------------------------------------------------------

    (5) In consultation with the General Counsel of the Department of 
Defense (GC, DoD) and the Secretaries of the Military Departments, do 
the following:
    (i) Ensure that eligible infants and toddlers with disabilities and 
their families are provided early intervention services under 20 U.S.C. 
921 et seq. and 1400 et seq.
    (ii) Ensure the coordination of early intervention, special 
education, and related services.
    (iii) Ensure the development of a DoD-wide comprehensive child-find 
system to identify eligible infants, toddlers, and children ages birth 
to age 21, inclusive, under 20 U.S.C 921 et seq. and 1400 et seq. who 
may require early intervention or special education services.
    (iv) Ensure that DoD personnel are trained to provide the mediation 
services specified in Appendix F to this part.
    (v) Ensure that transition services are available to promote 
movement from early intervention, preschool, and other educational 
programs into different educational settings and postsecondary 
environments.
    (vi) Ensure that DoD personnel who provide services (e.g., child 
care, medical care, and recreation) to infants and toddlers and their 
families are participants in a comprehensive inter-Component system for 
early intervention services.
    (vii) Assign functions and geographic regions of responsibility to 
the Military Departments for providing MRS and early intervention 
services.
    (viii) Ensure that the Military Departments deliver the following:

    (A) A comprehensive, coordinated and multidisciplinary program of 
early intervention services for eligible infants and toddlers with 
disabilities.
    (B) MRS for eligible children with disabilities, ages 3 to 21, 
inclusive.
    (ix) Ensure that qualified personnel participate in providing 
transition services for eligible infants, toddlers, and children with 
disabilities from birth to age 21, inclusive.
    (x) Ensure the development and implementation of a comprehensive 
system of personnel development for the DoDDS and the Military 
Departments. That system shall include professionals, paraprofessionals, 
and primary referral source personnel in the areas of early 
intervention, special education, and MRS. That system may include the 
following:
    (A) Implementing innovative strategies and activities for the 
recruitment and retention of providers of early intervention services, 
special education, and MRS.
    (B) Ensuring that personnel requirements are established consistent 
with recognized certification, licensing, registration, or other 
comparable requirements for personnel providing early intervention 
services, special education, or MRS.
    (C) Ensuring that training is provided in and across disciplines.
    (D) Training providers of early intervention services, special 
education, and MRS to work overseas.
    (xi) Develop procedures to compile data on the numbers of eligible 
infants and toddlers with disabilities and their families in need of 
early intervention services, in accordance

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with DoD Directives 5400.7 and 5400.11.\9\ Those data elements shall 
include the following:
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    \9\ See footnote 1 to Sec. 57.1(a).
---------------------------------------------------------------------------

    (A) The number of infants and toddlers and their families served.
    (B) The types of services provided.
    (C) Other information required to evaluate the implementation of 
early intervention programs (EIPs).
    (xii) Resolve disputes in the DoD Components arising under Appendix 
A to this part.
    (b) The Secretaries of the Military Departments shall:
    (1) Provide MRS for eligible children with disabilities, ages 3 to 
21, inclusive.
    (2) Plan, develop, and implement a comprehensive, coordinated, 
intra-Component, and community-based system of early intervention 
services for eligible infants and toddlers with disabilities and their 
families.
    (3) Design and implement activities to ensure compliance through 
technical assistance and program evaluation for early intervention and 
MRS.
    (c) The Director, Department of Defense Education Activity, shall 
ensure that the Director, DoDDS, does the following:
    (1) Ensures that eligible children with disabilities, ages 3 to 21, 
inclusive, are provided a FAPE.
    (2) Ensures that the educational needs of children with and without 
disabilities are met comparably, consistent with Appendix B to this 
part.
    (3) Ensures that educational facilities and services operated by the 
DoDDS for children with and without disabilities are comparable.
    (4) Maintains records on special education and related services 
provided to eligible children with disabilities, ages 3 to 21, 
inclusive, consistent with DoD Directive 5400.11.
    (5) Provides any or all special education and related services 
required by a child with a disability, ages 3 to 21, inclusive, other 
than those furnished by the Secretaries of the Military Departments. The 
Director, DoDDS, may act through inter-Agency, intra-Agency, and inter-
Service arrangements, or through contracts with private parties when 
funds are authorized and appropriated.
    (6) Participates in the development and implementation of a 
comprehensive system of personnel development.
    (7) Undertakes activities to ensure compliance by the DoDDS with 
this part through monitoring, technical assistance, and program 
evaluation of special education and those related services provided by 
the DoDDS.
    (d) The Director, Defense Office of Hearings and Appeals, under the 
General Counsel of the Department of Defense, shall ensure impartial due 
process hearings are provided consistent with Appendix F to this part.



Sec. 57.6  Procedures.

    (a) The procedures for early intervention services for infants and 
toddlers with disabilities and their families are prescribed in Appendix 
A to this part.
    (b) The procedures for educational programs and services for 
children with disabilities, ages 3 to 21, inclusive, are prescribed in 
Appendix B to this part.
    (c) The procedures for conducting hearings are prescribed in 
Appendix F to this part.

      Appendix A to Part 57--Procedures for the Provision of Early 
  Intervention Services for Infants and Toddlers With Disabilities and 
                             Their Families

         A. Requirements for an Early Intervention Program (EIP)

    1. All eligible infants and toddlers with disabilities from birth 
through age 2 and their families shall receive early intervention 
services, as follows:
    a. In school years 1991 through 1994, the Department of Defense 
planned and continues to develop a comprehensive, coordinated, 
multidisciplinary program of early intervention services for infants and 
toddlers with disabilities among DoD entities involved in providing such 
services.
    b. In school year 1994 through 1995, the Department of Defense 
implemented and shall continue to implement the following program 
components described in paragraph A.1.a. of this Appendix:
    (1) Multidisciplinary assessments.
    (2) IFSPs.
    (3) Service coordination.
    c. In school year 1995 through 1996, the Department of Defense shall 
implement the program described in paragraph A.1.a. of this Appendix. 
\1\
---------------------------------------------------------------------------

    \1\ The EIP shall be continuously implemented.
---------------------------------------------------------------------------

    2. Early intervention services shall be provided in the natural 
environment.
    3. Parents of infants and toddlers with disabilities are to be full 
and meaningful participants in the EIP.

                 B. Military Department Responsibilities

    Each Military Department shall develop and implement in its assigned 
geographic area a system to provide for the following:
    1. A comprehensive child find procedure coordinated with the DoDDS 
child find system and primary referral sources such as the child 
development center and the pediatric clinic.
    2. Administration and supervision of EIPs and services.

[[Page 278]]

    3. Identification of available resources and coordination with those 
resource providers, including the DoD Components, who routinely provide 
services to infants and toddlers without disabilities and their 
families.
    4. Procedures to provide timely services for infants and toddlers 
with disabilities and their families.
    5. Procedures to resolve inter-Component disputes about the delivery 
of early intervention services.
    6. Procedures to collect and report data reflecting the number of 
infants and toddlers and their families served, the types of services 
provided, and other information required by the USD(P&R) implementation 
of early intervention services.
    7. Multidisciplinary, comprehensive, and functional assessment of 
the unique strengths and needs of infants or toddlers and the 
identification of services to meet those needs.
    8. Procedures for a family-directed assessment to determine 
resources, priorities, and concerns of a family and to identify services 
necessary to enhance a family's capacity to meet the child's needs.
    9. An IFSP that details the early intervention services and the 
coordination of those services.
    10. A public awareness program focusing on early identification of 
infants and toddlers with disabilities.
    11. A central directory that includes a description of the early 
intervention services and other relevant resources available in each 
military community overseas.
    12. Information to parents about their EIP procedural safeguards.
    13. Establishment of ICCs at appropriate levels. Memberships shall 
include parents and the DoD Components who are involved in the delivery 
of early intervention services.
    14. Policies and procedures for the establishment and maintenance of 
standards to ensure that personnel necessary to carry out the EIP are 
prepared and trained.

                             C. Eligibility

    Infants and toddlers with disabilities from birth through age 2 are 
eligible for early intervention services because they meet one of the 
following criteria:
    1. The child is experiencing a developmental delay as measured by 
diagnostic instruments and procedures of 2 standard deviations below the 
mean in at least one area, or by a 25 percent delay in at least one area 
on assessment instruments that yield scores in months, or a 
developmental delay of 1.5 standard deviations below the mean in two or 
more areas, or by a 20 percent delay on assessment instruments that 
yield scores in months in two or more of the following areas of 
development: Cognitive, physical, communication, social or emotional, or 
adaptive.
    2. The child has a diagnosed physical or mental condition which has 
a high probability of resulting in developmental delay; e.g., 
chromosomal disorders or genetic syndromes.

                                 D. IFSP

    1. Each military medical department shall develop and implement 
procedures to ensure that an IFSP is developed by a multidisciplinary 
team including the parents of each infant or toddler with a disability 
who meets the eligibility criteria in section C.1. of this appendix.
    2. Meetings to develop and review the IFSP must include the 
following participants:
    a. The parent or parents of the child.
    b. Other family members, as requested by the parent, if possible.
    c. An advocate outside of the family, if the parent requests that 
person's participation.
    d. The EIP services coordinator who has worked with the family since 
the initial referral of the child or who has been designated as 
``responsible for the implementation of the IFSP.''
    e. The person(s) directly involved in conducting the evaluations and 
assessments.
    f. As appropriate, persons who shall provide services to the child 
or family.
    3. If a person listed in section D.2. of this appendix is unable to 
attend a meeting, arrangements must be made for the person's involvement 
through other means, including the following:
    a. Participating in a telephone conference call.
    b. Having a knowledgeable representative attend the meeting.
    c. Making pertinent records available at the meeting.
    4. The IFSP shall be written in a reasonable time after assessment 
and shall contain the following:
    a. A statement of the child's current developmental levels including 
physical, cognitive, communication, social or emotional, and adaptive 
behaviors based on acceptable objective criteria.
    b. A statement of the family's resources, priorities, and concerns 
on enhancing the child's development.
    c. A statement of the major outcomes expected to be achieved for the 
child and the family. Additionally, the statement shall contain the 
criteria, procedures, and timeliness used to determine the degree to 
which progress toward achieving the outcomes is being made and whether 
modification or revision of the outcomes and services are necessary.
    d. A statement of the specific early intervention services necessary 
to meet the unique needs of the child and the family including the 
frequency, intensity, and method of delivering services.

[[Page 279]]

    e. A statement of the natural environments in which early 
intervention services shall be provided.
    f. The projected dates for initiation of services and the 
anticipated duration of those services.
    g. The name of the EIP service coordinator.
    h. The steps to be taken supporting the transition of the toddler 
with a disability to preschool or other services.
    5. The IFSP shall be evaluated at least once a year and the family 
shall be provided an opportunity to review the plan at 6-month intervals 
(or more frequently, based on the child and family needs).
    6. The contents of the IFSP shall be explained to the parents and an 
informed, written consent from the parents shall be obtained before 
providing early intervention services described in that plan.
    7. With the parent's consent, early intervention services may begin 
before the completion of the evaluation and assessment when it has been 
determined by a multidisciplinary team that a service is needed 
immediately by the child and/or the child's family. Although all 
assessments have not been completed, an IFSP must be developed before 
the start of services. The remaining assessments must then be completed 
in a timely manner.
    8. If a parent does not provide consent for participation in all 
early intervention services, the services shall still be provided for 
those interventions to which a parent does give consent.

                   E. Procedural Safeguards in the EIP

    1. Parents of infants and toddlers with disabilities are afforded 
the following procedural safeguards to ensure that their children 
receive appropriate early intervention services:
    a. The timely administrative resolution of parental complaints, 
including hearing procedures in appendix F to this part.
    b. The right to confidentiality of personally identifiable 
information under DoD Directive 5400.11.\2\
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    \2\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    c. The right to written notice and consent to the release of 
relevant information outside the Department of Defense.
    d. The right to determine whether they, their child, or other family 
members shall accept or decline any early intervention services without 
jeopardizing other early intervention services.
    e. The opportunity to examine records on assessment, screening, 
eligibility determinations, and the development and implementation of 
the IFSP.
    f. The right to prior written notice when the EIP multidisciplinary 
team proposes, or refuses, to initiate or change the identification, 
evaluation, placement, or provision of early intervention services to 
the infant or toddler with a disability.
    g. The right to prior written notice in their native language, 
unless it clearly is not possible to do so, which informs them of all 
procedural safeguards.
    h. During the pendency of any proceeding or action involving a 
complaint, unless the EIP and the parents otherwise agree, the child 
shall continue to receive the appropriate early intervention services 
currently being provided, or, if applying for initial services, shall 
receive the services not in dispute.
    2. Parents shall be advised of their rights to due process, as 
defined in appendix F to this part.

Appendix B to Part 57--Procedures for Educational Programs and Services 
         for Children With Disabilities, Ages 3 to 21, Inclusive

                     A. Identification and Screening

    It is the responsibility of school officials of the DoDDS to locate, 
identify, and with the consent of a child's parent, evaluate all 
children who are eligible to enroll in the DoDDS under DoD Directive 
1342.13 \1\ who may require special education and related services.
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    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    1. Procedures for Identification and Screening. The DoDDS officials 
shall conduct the following activities to determine if a child needs 
special education and related services:
    a. Screen educational records.
    b. Screen students using system-wide or other basic skill tests in 
the areas of reading, math, and language arts.
    c. Screen school health data such as reports of hearing, vision, 
speech, or language tests and reports from healthcare personnel about 
the health status of a child.
    d. Analyze school records to obtain pertinent information about the 
basis for suspensions, exclusions, withdrawals, and disciplinary 
actions.
    e. In cooperation with the Military Departments, conduct on-going 
child-finding activities and publish, periodically, any information, 
guidelines, and direction on child-find activities for eligible children 
with disabilities, ages 3 to 21, inclusive.
    f. Coordinate the transition of children from early intervention to 
preschool with the Military Services.
    2. Referral of a Child for Special Education or Related Services. 
The DoDDS officials, MRS providers, or others who suspect that a child

[[Page 280]]

has a possible disabling condition shall refer that child to the CSC.

                      B. Assessment and Evaluation

    Any eligible child who is referred to a CSC shall receive a full and 
comprehensive diagnostic evaluation of educational needs. An evaluation 
shall be conducted before an IEP is developed or placement is made in a 
special education program.
    1. Procedures for Assessment and Evaluation. A CSC shall ensure that 
the following elements are included in a comprehensive assessment and 
evaluation of a child:
    a. Assessment of visual and auditory acuity.
    b. A plan to assess the type and extent of the disability. A child 
shall be assessed in all areas related to the suspected disability. When 
necessary, the assessment plan shall include the following:
    (1) Assessment of the level of functioning academically, 
intellectually, emotionally, socially, and in the family.
    (2) Observation in an educational environment.
    (3) Assessment of physical status including perceptual and motor 
abilities.
    (4) Assessment of the need for transition services for students 14 
years and older, the acquisition of daily living skills, and functional 
vocational assessment.
    c. The involvement of parents, under this part.
    d. The use of all locally available community, medical, and school 
resources to accomplish the assessment. At least one specialist with 
knowledge in the area of the suspected disability shall be a member of 
the multidisciplinary assessment team.
    e. The requirement that each assessor prepare an individual 
assessment report that describes the instruments and techniques used, 
the results of the testing, and the relationship of those findings to 
educational functioning.
    f. The inclusion of a description of the problem area constituting 
the basis for an MRS referral.
    2. Standards for Assessment Selection and Procedures. All DoD 
elements, including the CSC and MRS providers, shall ensure that 
assessment materials and evaluation procedures comply, as follows:
    a. Selected and administered so as not to be racially or culturally 
discriminatory.
    b. Administered in the native language or mode of communication of 
the child unless it clearly is not possible to do so.
    c. Validated for the specific purpose for which they are used or 
intended to be used.
    d. Administered by trained personnel in compliance with the 
instructions of the testing instrument.
    e. Administered such that no single procedure is the sole criterion 
for determining an appropriate educational program for a child with a 
disability.
    f. Selected to assess specific areas of educational needs and 
strengths and not merely to provide a single general intelligence 
quotient.
    g. Administered to a child with impaired sensor, motor, or 
communication skills so that the results reflect a child's actual 
ability or level of achievement, and simply not the impaired skill 
itself.
    3. Determination of Eligibility for Special Education and Related 
Services. The CSC shall be convened to determine the eligibility of a 
child for special education and related services. The CSC shall do the 
following:
    a. Ensure that the full comprehensive evaluation of a child is 
accomplished by a multidisciplinary team. The team shall be comprised of 
teachers or other specialists with knowledge in the area of the 
suspected disability.
    b. Meet as soon as possible after a child has been assessed to 
determine the eligibility of the child for services.
    c. Afford the child's parents the opportunity to participate in the 
CSC eligibility meeting.
    d. Issue a written eligibility report that contains the following:
    (1) A description of the nature of the child's disabling condition.
    (2) A synthesis of the formal and informal findings of the 
multidisciplinary assessment team of the child's academic progress.
    (3) A summary of information from the parents, the child, or other 
persons having significant previous contact with the child.
    (4) A determination of eligibility statement.
    (5) A list of the educational areas affected by a child's disability 
and a description of a child's educational needs.
    4. Reevaluation for Eligibility for Special Education and Related 
Services. School officials shall provide a comprehensive reevaluation of 
a child with a disability every 3 years, or more frequently, if 
conditions warrant. The scope and type of the comprehensive reevaluation 
shall be determined individually based on a child's performance, 
behavior, and needs during the reevaluation.

                C. Individualized Education Program (IEP)

    The DoDDS officials shall ensure that the CSC develops and 
implements an IEP for each child with a disability who is enrolled in 
the DoDDS or is placed in another institution by the DoDDS.
    1. The CSC Meeting for the Development and Implementation of an IEP. 
The CSC shall establish and convene a meeting to develop, review, or 
revise the IEP of a child with a disability. That meeting shall be 
scheduled as soon as possible following a determination by the school or 
area CSC that the child is eligible for special education and related

[[Page 281]]

services. The meeting participants shall, minimally, include the 
following:
    a. A principal or school representative other than the child's 
teacher who is qualified to provide or supervise the provision of 
special education.
    b. The child's teacher.
    c. A special education teacher.
    d. One or both of the child's parents.
    e. The child, if appropriate.
    f. For a child with a disability who has been evaluated for the 
first time, a representative of the evaluation team who is knowledgeable 
about the evaluation procedures used and is familiar with the results of 
the evaluation.
    g. Other individuals invited at the discretion of the parent or 
school.
    2. Requirements for the Development of the IEP. The CSC shall 
prepare the IEP with the following:
    a. A statement of the child's present levels of educational 
performance.
    b. A statement of annual goals including short-term instructional 
objectives.
    c. Objective criteria for determining, at least annually, whether 
the educational objectives are being achieved.
    d. A statement of the physical education program provided in one of 
the following settings:
    (1) In the regular education program.
    (2) In the regular education program with adaptations, 
modifications, or the use of assistive technology.
    (3) Through specially designed instruction based on the goals and 
objectives included in the IEP.
    e. A statement of the transition services beginning at age 14 and 
annually, thereafter. When appropriate, include a statement of the 
inter-Agency responsibilities or linkages (or both) before the student 
leaves the school setting. If a specially designed instructional program 
is required, include the goals and objectives in the IEP.
    f. A statement of special transportation requirement.
    g. A statement of the amount of time a week that each special 
education and related service shall be provided to the child.
    h. The extent to which the child shall participate in regular 
educational programs, including the following:
    (1) The projected date for the initiation and the anticipated length 
of IEP activities and services.
    (2) Any statements requiring an adjusted school day or an extended 
school year program.
    i. A statement of the vocational education program for secondary 
students. If a specially designed instructional program is required, the 
necessary goals and objectives in the IEP shall be included.
    3. Requirements for the Implementation of the IEP. The DoDDS CSC 
shall:
    a. Obtain parental agreement and signature before implementation of 
the IEP.
    b. Provide a copy of the child's IEP to the parents.
    c. Ensure that the IEP is in effect before a child receives special 
education and related services.
    d. Review and revise the IEP for each child at least annually in a 
CSC meeting.
    e. Accept a child's current IEP when he or she transfers to the 
DoDDS if the CSC of the gaining school or the area CSC does the 
following:
    (1) Notifies and obtains consent of the parents to use the current 
IEP and all elements contained in it.
    (2) Involves the local DoD Component responsible for the delivery of 
the MRS of the medical requirements in the IEP.
    (3) Initiates a CSC meeting to revise the current IEP.
    (4) If necessary, initiates an evaluation of the child.
    f. Afford the child's parents the opportunity to participate in 
every CSC meeting to determine their child's initial or continuing 
eligibility for special education and related services, or to prepare or 
change the child's IEP or to determine or change the child's placement.
    g. Ensure that at least one parent understands the special education 
procedures including the due process procedures described in appendix F 
of this part and the importance of the parent's participation in those 
processes. School officials shall use devices or hire interpreters or 
other intermediaries who might be necessary to foster effective 
communications between the school and the parent about the child.
    h. Provide special education and related services, in accordance 
with the IEP. The Department of Defense and its constituent elements and 
personnel are not accountable if a child does not achieve the growth 
projected in the IEP.
    i. Ensure that all provisions developed for any child entitled to an 
education by the DoDDS are fully implemented in schools or in non-DoDDS 
schools or facilities including those requiring special facilities, 
other adaptations, or assistive devices.

        D. Placement Procedures and Least Restrictive Environment

    1. A child shall not be placed by the DoDDS in any special education 
program unless the CSC has developed an IEP. If a child with a 
disability is applying for initial admission to a school, the child 
shall enter on the same basis as a child without a disability. A child 
with a disability and with the consent of a parent and school officials 
may receive an initial placement in a special education program under 
procedures listed in paragraph C.3.e. of this appendix.

[[Page 282]]

    2. A placement decision requires the following:
    a. A parent consent to the placement before actual placement of the 
child, except as otherwise provided in section F.2. of this appendix.
    b. Delivery of educational instruction and related services in the 
least restrictive environment. To the maximum extent, a child with a 
disability should be placed with children who are not disabled. Special 
classes, separate schooling, or other removal of a child with a 
disability from the regular education environment shall occur only when 
the type or severity of the disability is such that education in regular 
classes with the use of supplementary aids and services cannot be 
achieved satisfactorily.
    c. The CSC to base placements on the IEP and to review the IEP at 
least annually.
    d. A child shall participate, to the maximum extent, in school 
activities including meals, assemblies, recess periods, and field trips 
with children who are not disabled.
    e. Consideration of factors affecting the child's well-being 
including the effects of separation from parents.
    f. A child shall attend a DoDDS school that is located as close as 
possible to the residence of the parent who is sponsoring the child's 
attendance. Unless otherwise required by the IEP, the school should be 
the same school that the child would have attended had he or she not 
been disabled.

  E. Children With Disabilities Who Are Placed in a Non-DOD School or 
                                Facility

    Children with disabilities who are eligible to receive a DoDDS 
education, but are placed in a non-DoDDS school or facility by the 
DoDDS, shall have all the rights of children with disabilities who are 
enrolled in a DoDDS school. A child with a disability may be placed in a 
non-DoDDS school or facility only if required by the IEP.

      1. Requirements for a Non-DoDDS School or Facility Placement

    a. Placement in a non-DoDDS school or facility shall be made under 
the host-nation requirements.
    b. Placement in a non-DoDDS school or facility is subject to all 
treaties, Executive agreements, and status of forces agreements between 
the United States and the host nations, and all DoD and DoDDS 
regulations.
    c. If the DoDDS places a child with a disability in a non-DoDDS 
school or facility as a means of providing special education and related 
services, the program of that institution including nonmedical care and 
room and board, as in the child's IEP, must be provided at no cost to 
the child or the child's parents. The DoDDS or the responsible DoD 
Component shall pay the costs in accordance with DoD 1010.13-R \2\.
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    \2\ See footnote 1 to section A. of this appendix.
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    d. Local school officials shall initiate and conduct a meeting to 
develop an IEP for the child before placement. A representative of the 
non-DoDDS school or facility should attend the meeting. If the 
representative cannot attend, the DoDDS officials shall communicate in 
other ways to ensure participation including individual or conference 
telephone calls. The IEP must meet the following standards:
    (1) Be signed by an authorized DoDDS official before it becomes 
valid.
    (2) Include a determination that the DoDDS does not currently have 
or cannot reasonably create an educational program appropriate to meet 
the needs of the child with a disability.
    (3) Include a determination that the non-DoDDS school or facility 
and its educational program and related services conform to the 
requirements of this part.
    2. Cost of Tuition For Non-DoDDS School or Facility. The Department 
of Defense is not authorized to fund non-DoDDS placement unless it is 
directed by the DoDDS Area Superintendent in coordination with the 
Director, DoDDS; or it is directed by an impartial hearing officer or 
court of competent jurisdiction. A valid IEP must document the necessity 
of the placement in a non-DoDDS school or facility.

            F. Procedural Safeguards for Children and Parents

    Parents of children with disabilities are afforded procedural 
safeguards to ensure that their children receive a free public education 
consistent with appendix F to this part.

                   1. Notice of Procedural Safeguards

    a. Parents shall be provided a written notice in a reasonable time 
before one of the following:
    (1) Receiving a proposal to initiate or change the identification, 
evaluation, or educational placement of the child or the provision of 
free public education to the child.
    (2) Receiving refusal from the DoDDS to initiate or change the 
identification, evaluation, or educational placement of the child or the 
provision of a free public education.
    b. The notice shall inform the parent of the following:
    (1) Parental procedural rights detailed in appendix F to this part.
    (2) A description of the action proposed or refused by the DoDDS 
with a brief explanation for the decision.
    c. The notice shall be provided so as to ensure the parent's 
understanding. That may

[[Page 283]]

be achieved by using simplified language, delivering the notice in the 
parent's native language, or using an interpreter or other person 
selected by the parents.

                           2. Parental Consent

    a. The consent of a parent of a child with a disability or suspected 
of having a disability shall be obtained before any of the following:
    (1) Initiation of formal evaluation procedures.
    (2) Initial educational placement.
    (3) Change in educational placement.
    b. If the parent refuses consent to any formal evaluation or initial 
placement in a special education program, the DoDDs or the parent may do 
the following:
    (1) Request a conference between the school and parents.
    (2) Request mediation.
    (3) Initiate an impartial due process hearing under appendix F to 
this part, to show cause as to why an evaluation or placement in a 
special education program should or should not occur without such 
consent. If the hearing officer sustains the DoDDS position in the 
impartial due process hearing, the DoDDS may evaluate or provide special 
education and related services to the child without the consent of a 
parent, subject to the further exercise of due process rights.

                        3. Independent Evaluation

    a. A parent is entitled to an independent evaluation at the expense 
of the DoDDS if the parent disagrees with the DoDDS evaluation of the 
child and successfully challenges the evaluation in an impartial due 
process hearing. An independent evaluation provided at the DoDDS expense 
must do the following:
    (1) Conform to the requirements of this part.
    (2) Be conducted, when possible, in the area where the child 
resides.
    (3) Meet DoD standards governing persons qualified to conduct an 
educational evaluation including an evaluation for MRS.
    b. If the final decision rendered in an impartial due process 
hearing sustains the DoDDS evaluation, the parent has the right to an 
independent evaluation, but not at the DoDDS expense.
    c. The DoDDS, the CSC, and a hearing officer appointed under this 
part shall consider any evaluation report presented by a parent.
    4. Access to Records. The parents of a child with a disability shall 
be afforded an opportunity to inspect and review educational records 
about the identification, evaluation, and educational placement of the 
child, and the provision of a free public education for the child.

                          5. Due Process Rights

    a. The parent of a child with a disability or the DoDDS has the 
opportunity to file a written petition for an impartial due process 
hearing at the DoDDS expense under appendix F to this part. The dispute 
may concern issues effecting a partial child's identification, 
evaluation, or placement, or the provision of a free and appropriate 
public education.
    b. While an impartial due process hearing or judicial proceeding is 
pending, unless the DoDDS and a parent of the child agree otherwise, the 
child shall remain in the present educational setting, subject to the 
disciplinary procedures prescribed in section H. of this appendix.
    6. Dispute Resolution--Other Complaints. A parent, teacher, or other 
person covered by this part may file a written complaint about any 
aspect of this part that is not a proper subject for adjudication by a 
due process hearing officer, in accordance with DSR 2500.10.\3\
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    \3\ Copies of the appropriate forms are available at every school 
office.
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                      G. Confidentiality of Records

    The DoDDS officials shall maintain all student records, in 
accordance with DoD Directive 5400.11.\4\
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    \4\ See footnote 1 to section A. of this appendix.
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                       H. Disciplinary Procedures

    All regular disciplinary rules and procedures applicable to children 
receiving educational instruction in the DoDDS shall apply to children 
with disabilities who violate school rules and regulations or disrupt 
regular classroom activities, subject to the following provisions:
    1. Before suspending or expelling a child with a disability, the CSC 
or, a child with a disability in a non-DoDDS school, authorized DoDDS 
officials, shall determine the following:
    a. Whether the behavioral conduct is the result of the child's 
disability.
    b. If any change in the educational placement is needed.
    2. If it is determined that the child's conduct results in whole or 
part from the disability, the child may not be subject to any regular 
disciplinary rules and procedures and the following procedures must be 
followed:
    a. The child's parents shall be notified of the right to have an IEP 
meeting before any change in the child's educational placement.
    b. The CSC or authorized DoDDS officials shall ensure that a meeting 
is held to determine the appropriate educational placement for the child 
in consideration of the child's conduct.

[[Page 284]]

    c. The child may not be suspended for more than 10 days during a 
school year.
    3. A child with a disability may be suspended on an emergency basis 
when it reasonably appears that the child's behavior may endanger the 
health, welfare, or safety of self or any other child, teacher, or 
school personnel. The following conditions apply:
    a. The child's parents shall be notified immediately of that 
suspension and of the time, purpose, and location of the CSC meeting and 
of their right to attend the meeting.
    b. That suspension remains in effect only for the duration of the 
emergency.
    4. If it is determined that the child requires a change in 
educational placement, the CSC or, in the case of a child with a 
disability in a non-DoDDS school, authorized DoDDS officials shall 
ensure that a meeting is held to determine the appropriate educational 
placement for the child in consideration of the child's conduct.

    Appendix C to Part 57--The National Advisory Panel (Nap) on the 
                Education of Dependents With Disabilities

                              A. Membership

    The NAP shall meet as needed in publicly announced, accessible 
meetings open to the general public and shall comply with DoD Directive 
5105.4\1\. The NAP members, appointed by the Secretary of Defense, or 
designee, shall include at least one representative from each of the 
following groups.
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    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
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    1. Persons with disabilities
    2. The DoDDS special education teachers
    3. The DoDDS regular education teachers.
    4. Parents of children, ages 3 to 21, inclusive, who are receiving 
special education from the DoDDS.
    5. The staff personnel of the DoDDS Headquarters.
    6. Special education program managers from the DoDDS field 
activities.
    7. Representatives of the Military Departments and overseas 
commands, including providers of related services.
    8. Providers of the DoD early intervention services.
    9. Other appropriate persons.

                              B. Activities

    1. The NAP shall perform the following activities:
    a. Review information about improvements in service provided to 
children with disabilities, ages 3 to 21, inclusive in the Department of 
Defense.
    b. Receive and consider comments from parents, students, 
professional groups, and individuals with disabilities.
    c. When necessary establish committees for short-term purposes 
comprised of representatives from parent, student, professional groups, 
and individuals with disabilities.
    d. Review the findings of fact and decisions of each impartial due 
process hearing conducted under appendix F of this part.
    e. Assist in developing and reporting such information and 
evaluations as may assist the Department of Defense.
    f. Make recommendations based on program and operational information 
for changes in policy and procedures and in the budget, organization, 
and general management of the special education program.
    g. Comment publicly on rules or standards about the education of 
children with disabilities, ages 3 to 21, inclusive.
    h. Perform such other tasks as may be requested by the USD(P&R) or 
the Director, DoDDS.
    2. The NAP members shall serve under appointments that shall be for 
a term not to exceed 3 years.

                        C. Reporting Requirements

    Submit an annual report of the NAP's activities and suggestions to 
the USD(P&R) and the Director, DoDDS, by July 31 of each year. That 
report is exempt from formal review and licensing under section E. of 
DoD Instruction 7750.7.\2\
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    \2\ See footnote 1 to section A. of this appendix.
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Appendix D to Part 57--DoD Coordinating Committee on Early Intervention, 
            Special Education, and Medically Related Services

                         A. Committee Membership

    The committee shall meet at least twice yearly to facilitate 
collaboration in early intervention, special education, and Medically 
Related Services (MRS) in the Department of Defense. The committee shall 
consist of the following members:
    1. A representative of the USD(P&R) or designee, who shall serve as 
the Chair.
    2. Representatives of the Secretaries of the Military Departments.
    3. Representatives of the Assistant Secretary of Defense (Health 
Affairs) (ASD(HA)).
    4. Representatives from the DoD school systems (domestic and 
overseas).
    5. Representatives from the GC, DoD.

[[Page 285]]

                           B. Responsibilities

    1. Advise and assist the USD(P&R) in the performance of his or her 
responsibilities.
    2. At the direction of the USD(P&R), advise and assist the Military 
Departments, and the DoD school systems (overseas and domestic) in the 
coordination of services among providers of early intervention, special 
education, and MRS.
    3. Ensure compliance in the provision of early intervention services 
for infants and toddlers and special education and related services for 
children ages 3 to 21, inclusive.
    4. Oversee the coordination of early intervention, special 
education, and related services.
    5. Review the recommendations of the NAP and the Early Intervention 
ICC to identify common concerns, ensure coordination of effort, and 
forward issues requiring resolution to the USD(P&R).
    6. Promote the coordination of services and information sharing 
among the providers of early intervention, special education, and MRS.
    7. Assist in the coordination of assignments of sponsors who have 
children with disabilities who are or who may be eligible for special 
education and MRS in the DoDDS or the EIP through the Military 
Departments.

Appendix E to Part 57--DoD Inter-Component Coordinating Council (ICC) on 
                           Early Intervention

                          A. Council Membership

    The USD(P&R) shall appoint members to the ICC. The Council shall 
meet at least yearly in publicly announced, open meetings that are 
accessible to the general public and shall comply with DoD Directive 
5105.4.\1\ The Council shall be comprised of the following:
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    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    1. Parents. At least 20 percent of the members shall be parents with 
infants or toddlers with disabilities or children ages 12 or younger 
with disabilities, with knowledge of, or experience with, programs for 
infants and toddlers with disabilities. At least one such member shall 
be a parent of an infant or toddler or a child age 6 or younger.
    2. Representatives of the Surgeons General of the Military 
Departments.
    3. Representatives of the family support programs of the Military 
Departments.
    4. Representatives from the ASD(HA).
    5. Representative(s) from the DoDDS.
    6. A representative from the GC, DoD.

                           B. Responsibilities

    1. Advise and assist the Military medical Departments in the 
performance of their responsibilities, particularly the identification 
of appropriate resources and Agencies for providing early intervention 
services and the promoting of inter-Component agreements.
    2. Advise and assist the DoDDS on the transition of toddlers with 
disabilities to preschool services.
    3. Identify strategies to address areas of conflict, overlap, 
duplication, or omission of early intervention services.
    4. Review policy memoranda on effective inter-Department and inter-
Component collaboration.
    5. Review reports of technical assistance and monitoring activities 
and make recommendations to improve the policies, procedures, programs, 
and delivery of early intervention services.
    6. Make recommendations based on program and operational information 
for changes in the policy, procedures, budget, organization, and general 
management of the EIPs.
    7. Provide advice and technical assistance in the establishment, 
membership, and operation of installation or command level ICCs.
    8. When necessary, establish committees for short-term purposes 
comprised of parents of children with disabilities, service providers, 
and representatives of professional groups.
    9. Submit an annual report of its activities and suggestions to the 
USD(P&R) by July 31 of each year. That report is exempt from formal 
review and licensing under section E. of DoD Instruction 7750.7.\2\
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    \2\ See footnote 1 to section A. of this appendix.
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                              C. Procedures

    1. The USD(P&R) shall nominate and select all members to the ICC to 
include those listed in section A.1. of this appendix.
    2. Appointments shall be for a term not to exceed 3 years except for 
DoD personnel who are not representing the parent category of 
membership.
    3. The USD(P&R), or designee, shall call and conduct the meeting of 
the Council.

         Appendix F to Part 57--Mediation and Hearing Procedures

                               A. Purpose

    This appendix establishes requirements for the resolution of 
conflicts through mediation and impartial due process hearings. Parents 
of infants, toddlers, and children who are covered by this Instruction 
and, as the case may be, the cognizant Military Department

[[Page 286]]

or the DoDDS are afforded impartial mediation and/or impartial due 
process hearings and administrative appeals about the provision of early 
intervention services, or the identification, evaluation, educational 
placement of, and the FAPE provided to, such children by the Department 
of Defense, in accordance with 20 U.S.C. 921 et seq. and 1400 et seq.

                              B. Mediation

    1. Mediation may be initiated by either a parent or the Military 
Department concerned, or the DoDDS to resolve informally a disagreement 
on the early intervention services for an infant or toddler or the 
identification, evaluation, educational placement of, or the FAPE 
provided to, a child age 3 to 21, inclusive. The cognizant Military 
Department, rather than the DoDDS, shall participate in mediation 
involving early intervention services. Mediation shall consist of, but 
not be limited to, an informal discussion of the differences between the 
parties in an effort to resolve those differences. The parents and the 
school or Military Department officials may attend mediation sessions.
    2. Mediation must be conducted, attempted, or refused in writing by 
a parent of the infant, toddler, or child whose early intervention or 
special education services (including related services) are at issue 
before a request for, or initiation of, a formal due process hearing 
authorized by this appendix. Any request by the DoDDS or the Military 
Department for a hearing under this appendix shall state how that 
requirement has been satisfied. No stigma may be attached to the refusal 
of a parent to mediate or to an unsuccessful attempt to mediate.

                        C. Hearing Administration

    1. The Defense Office of Hearings and Appeals (DOHA) shall have 
administrative responsibility for the proceedings authorized by sections 
D. through G. of this appendix.
    2. This appendix shall be administered to ensure that the findings, 
judgments, and determinations made are prompt, fair, and impartial.
    3. Impartial hearing officers who shall be DOHA Administrative 
Judges, shall be appointed by the Director, DOHA, and shall be attorneys 
in good standing of the bar of any State, the District of Columbia, or a 
territory or possession of the United States who are independent of the 
DoDDS or the Military Department concerned in proceedings conducted 
under this appendix. A parent shall have the right to be represented in 
such proceedings, at no cost to the Government, by counsel, and by 
persons with special knowledge or training with respect to the problems 
of individuals with disabilities. The DOHA Department counsel normally 
shall appear and represent the DoDDS in proceedings conducted under this 
appendix, when such proceedings involve a child age 3 to 21, inclusive. 
When an infant or toddler is involved, the Military Department 
responsible under this Instruction for delivering early intervention 
services shall either provide its own counsel or request counsel from 
DOHA.

                    D. Hearing Practice and Procedure

                               1. Hearing

    a. Should mediation be refused or otherwise fail to resolve the 
issues on the provision of early intervention services to an infant or 
toddler or the identification or evaluation of such an individual, the 
parent may request and shall receive a hearing before a hearing officer 
to resolve the matter. The parents of an infant or toddler and the 
Military Department concerned shall be the only parties to a hearing 
conducted under this appendix.
    b. Should mediation be refused or otherwise fail to resolve the 
issues on the provision of a FAPE to a child with a disability, age 3 to 
21, inclusive, or the identification, evaluation, or educational 
placement of such an individual, the parent or the school principal, for 
the DoDDS, may request and shall receive a hearing before a hearing 
officer to resolve the matter. The parents of a child age 3 to 21, 
inclusive, and the DoDDS shall be the only parties to a hearing 
conducted under this appendix.
    c. The party seeking the hearing shall submit a written request, in 
the form of a petition, setting forth the facts, issues, and proposed 
relief, to the Director, DOHA. The petitioner shall deliver a copy of 
the petition to the opposing party (i.e., the parent or the school 
principal, for the DoDDS, or the military MTF commander, for the 
Military Department), either in person or by first-class mail, postage 
prepaid. Delivery is complete on mailing. When the DoDDS or the Military 
Department petitions for a hearing, it shall inform the other parties of 
the deadline for filing an answer under paragraph D.1.c. of this 
appendix, and shall provide the other parties with a copy of this part.
    d. An opposing party shall submit an answer to the petition to the 
Director, DOHA, with a copy to the petitioner, within 15 calendar days 
of receipt of the petition. The answer shall be as full and complete as 
possible, addressing the issues, facts, and proposed relief. The 
submission of the answer is complete on mailing.
    e. In 10 calendar days after receiving the petition, the Director, 
DOHA, shall assign a hearing officer, who then shall have jurisdiction 
over the resulting proceedings. The Director, DOHA, shall forward all 
pleadings to the hearing officer.
    f. The questions for adjudication shall be based on the petition and 
the answer, if a

[[Page 287]]

party may amend a pleading if the amendment is filed with the hearing 
officer and is received by the other parties at least 5 calendar days 
before the hearing.
    g. The Director, DOHA, shall arrange for the time and place of the 
hearing, and shall provide administrative support. Such arrangements 
shall be reasonably convenient to the parties.
    h. The purpose of a hearing is to establish the relevant facts 
necessary for the hearing officer to reach a fair and impartial 
determination of the case. Oral and documentary evidence that is 
relevant and material may be received. The technical rules of evidence 
shall be relaxed to permit the development of a full evidentiary record, 
with the ``Federal Rules of Evidence'' (Rules 1-1102) of 28 U.S.C., 
serving as a guide.
    i. The hearing officer shall be the presiding officer, with judicial 
powers to manage the proceeding and conduct the hearing. Those powers 
shall include the authority to order an independent evaluation of the 
child at the expense of the DoDDS or the Military Department concerned 
and to call and question witnesses.
    j. Those normally authorized to attend a hearing shall be the 
parents of the individual with disabilities, the counsel and personal 
representative of the parents, the counsel and professional employees of 
the DoDDS or the Military Department concerned, the hearing officer, and 
a person qualified to transcribe or record the proceedings. The hearing 
officer may permit other persons to attend the hearing, consistent with 
the privacy interests of the parents and the individual with 
disabilities, if the parents have the right to an open hearing on 
waiving in writing their privacy rights and those of the individual with 
disabilities.
    k. A verbatim transcription of the hearing shall be made in written 
or electronic form and shall become a permanent part of the record. A 
copy of the written transcript or electronic record of the hearing shall 
be made available to a parent on request and without cost. The hearing 
officer may allow corrections to the written transcript or electronic 
recording for conforming it to actual testimony after adequate notice of 
such changes is given to all parties.
    l. The hearing officer's decision of the case shall be based on the 
record, which shall include the petition, the answer, the written 
transcript or the electronic recording of the hearing, exhibits admitted 
into evidence, pleadings or correspondence properly filed and served on 
all parties, and such other matters as the hearing officer may include 
in the record, if such matter is made available to all parties before 
the record is closed under paragraph D.1.m. of this appendix.
    m. The hearing officer shall make a full and complete record of a 
case presented for adjudication.
    n. The hearing officer shall decide when the record in a case is 
closed.
    o. The hearing officer shall issue findings of fact and render a 
decision in a case not later than 50 calendar days after being assigned 
to the case, unless a discovery request under section D.2. of this 
appendix, is pending.

                              2. Discovery

    a. Full and complete discovery shall be available to parties to the 
proceeding, with the ``Federal Rules of Civil Procedure,'' Rules 26-37, 
codified at 28 U.S.C. serving as a guide.
    b. If voluntary discovery cannot be accomplished, a party seeking 
discovery may file a motion with the hearing officer to accomplish 
discovery, provided such motion is founded on the relevance and 
materiality of the proposed discovery to the issues. An order granting 
discovery shall be enforceable as is an order compelling testimony or 
the production of evidence.
    c. A copy of the written or electronic transcription of a deposition 
taken by the DoDDS or the Military Department concerned shall be made 
available free of charge to a parent.

                  3. Witnesses; Production of Evidence

    a. All witnesses testifying at the hearing shall be advised that it 
is a criminal offense knowingly and willfully to make a false statement 
or representation to a Department or Agency of the U.S. Government as to 
any matter in the jurisdiction of that Department or Agency. All 
witnesses shall be subject to cross-examination by the parties.
    b. A party calling a witness shall bear the witness' travel and 
incidental expenses associated with testifying at the hearing. The DoDDS 
or the Military Department concerned shall pay such expenses when a 
witness is called by the hearing officer.
    c. The hearing officer may issue an order compelling the attendance 
of witnesses or the production of evidence on the hearing officer's own 
motion or, if good cause be shown, on motion of a party.
    d. When the hearing officer determines that a person has failed to 
obey an order to testify or to produce evidence, and such failure is in 
knowing and willful disregard of the order, the hearing officer shall so 
certify.
    e. The party or the hearing officer seeking to compel testimony or 
the production of evidence may, on the certification provided for in 
paragraph D.3.d. of this appendix, file an appropriate action in a court 
of competent jurisdiction to compel compliance with the hearing 
officer's order.

[[Page 288]]

           4. Hearing Officer's Findings of Fact and Decision

    a. The hearing officer shall make written findings of fact and shall 
issue a decision setting forth the questions presented, the resolution 
of those questions, and the rationale for the resolution. The hearing 
officer shall file the findings of fact and decision with the Director, 
DOHA, with a copy to the parties.
    b. The Director, DOHA, shall forward to the Director, DoDDS, or to 
the Military Department concerned, and to the NAP or the ICC, as 
appropriate, copies with all personally identifiable information 
deleted, of the hearing officer's findings of fact and decision or, in 
cases that are administratively appealed, of the final decision of the 
DOHA Appeal Board.
    c. The hearing officer shall have the authority to impose financial 
responsibility for early intervention services, educational placements, 
evaluations, and related services under his or her findings of fact and 
decision.
    d. The findings of fact and decision of the hearing officer shall 
become final unless a notice of appeal is filed under section F.1. The 
DoDDS or the Military Department concerned shall implement a decision as 
soon as practicable after it becomes final.

                    E. Determination Without Hearing

    1. At the request of a parent of an infant, toddler, or child age 3 
to 21, inclusive, when early intervention or special educational 
(including related) services are at issue, the requirement for a hearing 
may be waived, and the case may be submitted to the hearing officer on 
written documents filed by the parties. The hearing officer shall make 
findings of fact and issue a decision in the period fixed by paragraph 
D.1.o. of this appendix.
    2. The DoDDS or the Military Department concerned may oppose a 
request to waive that hearing. In that event, the hearing officer shall 
rule on that request.
    3. Documents submitted to the hearing officer in a case determined 
without a hearing shall comply with paragraph D.1.h. of this appendix. A 
party submitting such documents shall provide copies to all other 
parties.

                                F. Appeal

    1. A party may appeal the hearing officer's findings of fact and 
decision by filing a written notice of appeal with the Director, DOHA, 
within 5 calendar days of receipt of the findings of fact and decision. 
The notice of appeal must contain the appellant's certification that a 
copy of the notice of appeal has been provided to all other parties. 
Filing is complete on mailing.
    2. Within 10 calendar days of filing the notice of appeal, the 
appellant shall submit a written statement of issues and arguments to 
the Director, DOHA, with a copy to the other parties. The other parties 
shall submit a reply or replies to the Director, DOHA, within 15 
calendar days of receiving the statement, and shall deliver a copy of 
each reply to the appellant. Submission is complete on mailing.
    3. The Director, DOHA, shall refer the matter on appeal to the DOHA 
Appeal Board. It shall determine the matter, including the making of 
interlocutory rulings, within 60 calendar days of receiving timely 
submitted replies under section F.2. of this appendix. The DOHA Appeal 
Board may require oral argument at a time and place reasonably 
convenient to the parties.
    4. The determination of the DOHA Appeal Board shall be a final 
administrative decision and shall be in written form. It shall address 
the issues presented and set forth a rationale for the decision reached. 
A determination denying the appeal of a parent in whole or in part shall 
state that the parent has the right under 20 U.S.C. 921 et seq. and 1400 
et seq., to bring a civil action on the matters in dispute in a district 
court of the United States without regard to the amount in controversy.
    5. No provision of this Instruction or other DoD guidance may be 
construed as conferring a further right of administrative review. A 
party must exhaust all administrative remedies afforded by this appendix 
before seeking judicial review of a determination made under this 
appendix.

             G. Publication and Indexing of Final Decisions

    The Director, DOHA, shall ensure that final decisions in cases 
arising under this appendix are published and indexed to protect the 
privacy rights of the parents who are parties in those cases and the 
children of such parents, in accordance with DoD Directive 5400.11\1\.
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    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
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PART 58--HUMAN IMMUNODEFICIENCY VIRUS (HIV-1)--Table of Contents




Sec.
58.1  Purpose.
58.2  Applicability.
58.3  Definitions.
58.4  Policy.
58.5  Responsibilities.
58.6  Procedures.

Appendix A to Part 58--Administration of Officer Applicants
Appendix B to Part 58--HIV-1 Testing of DoD Civilian Employees
Appendix C to Part 58--Personnel Notification and Epidemiological 
          Investigation


[[Page 289]]


    Authority: 10 U.S.C. 113.

    Source: 56 FR 15281, Apr. 16, 1991, unless otherwise noted.



Sec. 58.1  Purpose.

    This part supersedes Deputy Secretary of Defense Memorandum, 
``Policy on Identification, Surveillance, and Administration of 
Personnel Infected with Human Immunodeficiency Virus (HIV),'' August 4, 
1988, Deputy Secretary of Defense Memorandum, ``Recommendations for 
Revision of DoD Human Immunodeficiency Virus (HIV) Policies,'' March 8, 
1988, Assistant Secretary of Defense (Health Affairs) Memorandum, 
``Policy on Clinical Evaluation, Staging and Disease Coding of Military 
Personnel Infected with Human Immunodeficiency Virus (HIV),'' September 
11, 1987, Assistant Secretary of Defense (Health Affairs) Memorandum, 
``The DoD HTLV-III Testing Program,'' December 5, 1985, Assistant 
Secretary of Defense (Health Affairs) Memorandum, ``Military 
Implementation of Public Health Service Provisional Recommendations 
Concerning Testing Blood and Plasma for Antibodies to HTLV-III,'' July 
17, 1985, to update policy, responsibilities, and procedures on 
identification, surveillance, and administration of civilian and 
military personnel infected with HIV-1.



Sec. 58.2  Applicability.

    This part applies to the Office of the Secretary of Defense, the 
Military Departments (including their Reserve components), the Chairman 
of the Joint Chiefs of Staff and the Joint Staff, the Unified and 
Specified Commands, and the Defense Agencies (hereafter referred to 
collectively as ``the DoD Components''). The term ``Military Services,'' 
as used herein, refers to the Army, the Navy, the Air Force, and the 
Marine Corps.



Sec. 58.3  Definitions.

    (a) Human Immunodeficiency Virus-1 (HIV-1). The virus most commonly 
associated with the Acquired Immune Deficiency Syndrome (AIDS) in the 
United States.
    (b) HIV-1 and/or AIDS Education Program. Any combination of 
information, education, and behavior-change strategies designed to 
facilitate behavioral alteration that will improve or protect health. 
Included are those activities intended to support or influence 
individuals in managing their own health through lifestyle decisions and 
self-care. Operationally, such programs include community, worksite, and 
clinical aspects using appropriate public health education 
methodologies.
    (c) Serologic Evidence of HIV-1 Infection. A reactive result given 
by a Food and Drug Administration (FDA)-approved enzyme-linked 
immunosorbent assay (ELISA) serologic test that is confirmed by a 
reactive and diagnostic immunoelectrophoresis test (Western blot (WB)) 
test on two separate samples.
    (d) Host Nation. A foreign nation to which DoD U.S. civilian 
employees are assigned to perform their official duties.
    (e) DoD Civilian Employees. Current and prospective DoD U.S. 
civilian employees, including appropriated and nonappropriated fund 
personnel. This does not include members of the family of DoD civilian 
employees, employees of, or applicants for, positions with contractors 
performing work for the Department of Defense, or their families.
    (f) Epidemiological Assessment. The process by which personal and 
confidential information on the possible modes of transmission of HIV-1 
are obtained from an HIV-1 infected person. This information is used to 
determine if previous, present, or future contacts of the infected 
individual are at risk for infection with HIV-1 and to prevent further 
transmission of HIV-1.



Sec. 58.4  Policy.

    It is DoD policy to:
    (a) Deny eligibility for appointment or enlistment for Military 
Service to individuals with serologic evidence of HIV-1 infection.
    (b) Screen active duty (AD) and Reserve component military personnel 
periodically for serologic evidence of HIV-1 infection.
    (c) Refer AD personnel with serologic evidence of HIV-1 infection 
for a medical evaluation of fitness for continued service in the same 
manner as personnel with other progressive illnesses, as

[[Page 290]]

specified in DoD Directive 1332.18.\1\ Medical evaluation shall be 
conducted in accordance with the standard clinical protocol, as 
described in the Standard Clinical Protocol.\2\ Individuals with 
serologic evidence of HIV-1 infection who are fit for duty shall not be 
retired or separated solely on the basis of serologic evidence of HIV-1 
infection. AD personnel with serological evidence of HIV-1 infection or 
who are ELISA repeatedly reactive, but WB negative or indeterminate, 
shall be advised to refrain from donating blood.
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    \1\ Copies may be obtained at cost, from the National Technical 
Information Services, 5285 Port Royal Road, Springfield, VA 22161.
    \2\ Forward requests for copies to the Office of the Assistant 
Secretary of Defense (Health Affairs), the Pentagon, Washington, DC 
20301-1200.
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    (d) Deny eligibility for extended AD (duty for a period of more than 
30 days) to those Reserve component members with serologic evidence of 
HIV-1 infection (except under conditions of mobilization and on the 
decision of the Secretary of the Military Department concerned). Reserve 
component members who are not on extended AD or who are not on extended 
full-time National Guard duty, and who show serologic evidence of HIV-1 
infection, shall be transferred involuntarily to the Standby Reserve 
only if they cannot be utilized in the Selected Reserve.
    (e) Retire or separate AD or Reserve Service members infected with 
HIV-1 who are determined to be unfit for further duty, as implemented in 
DoD Directive 1332.18.
    (f) Ensure the safety of the blood supply through policies of the 
Head of the Armed Services Blood Program Office, the FDA guidelines, and 
the accreditation requirements of the Head of the American Association 
of Blood Banks.
    (g) Comply with applicable statutory limitations on the use of the 
information obtained from a Service member during, or as a result of, an 
epidemiologic assessment interview and the results obtained from 
laboratory tests for HIV-1, as provided in this part.
    (h) Control transmission of HIV-1 through an aggressive disease 
surveillance and health education program.
    (i) Provide education and voluntary HIV-1 serologic screening for 
DoD healthcare beneficiaries (other than Service members).
    (j) Comply with host-nation requirements for HIV-1 screening of DoD 
civilian employees, as described in appendix B to this part.



Sec. 58.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Health Affairs), in 
coordination with the Assistant Secretary of Defense (Force Management 
and Personnel) (ASD(FM&P)), the General Counsel of the Department of 
Defense (GC, DoD), and the Assistant Secretary of Defense (Reserve 
Affairs), is responsible for establishing policies, procedures, and 
standards for the identification, surveillance, and administration of 
personnel infected with HIV-1. The Assistant Secretary of Defense 
(Health Affairs) (ASD(HA)) shall provide overall policy guidance and 
approval for the HIV-1 and/or AIDS education and information efforts and 
shall establish the HIV-1 and/or AIDS Information and Education 
Coordinating Committee.
    (b) The Secretaries of the Military Departments shall establish 
Service policies, procedures, and standards for the identification, 
surveillance, education, and administration of personnel infected with 
HIV-1, based on and consistent with all sections of this part.
    (c) The Assistant Secretary of Defense (Force Management and 
Personnel) shall establish and revise policies governing HIV-1 screening 
of DoD civilian employees assigned to, performing official travel in, or 
deployed on ships with ports of call at host nations, in coordination 
with the ASD(HA), the Assistant Secretary of Defense (International 
Security Affairs), and the GC, DoD.
    (d) The Assistant Secretary of Defense (International Security 
Affairs) shall identify or confirm host-nation HIV-1 screening 
requirements for DoD civilians, transmit this information to the 
ASD(FM&P), and coordinate requests for screening with the Secretary of 
State.
    (e) The Heads of the DoD Components shall implement HIV-1 screening 
policies and procedures for DoD civilian employees identified in 
Sec. 58.5(c) and shall take the following actions:

[[Page 291]]

    (1) Report newly established host-nation HIV-1 screening 
requirements to the ASD(FM&P) and provide sufficient background 
information to support a decision. This reporting requirement is exempt 
from licensing, in accordance with DoD 7750.5-M,\3\ paragraph E.4.b.
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    \3\ See footnote 1 to Sec. 58.4(c)
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    (2) Develop and distribute policy implementing instructions.
    (3) Establish procedures to notify individuals who are evaluated as 
HIV-1 seropositive and provide initial counseling to them.



Sec. 58.6  Procedures.

    (a) Applicants for Military Service and, periodically, AD and 
Reserve component military personnel shall be screened for serologic 
evidence of HIV-1 infection. Testing and interpretation of results shall 
be in accordance with the procedures in HIV-1 Testing and Interpretation 
of Results.\4\ Test results shall be reported to the Reportable Disease 
Data Base, as described in the ASD(HA) Memorandum.
---------------------------------------------------------------------------

    \4\ See footnote 2 to Sec. 58.4(c)
---------------------------------------------------------------------------

    (b) Applicants for enlisted service shall be screened at the 
Military Entrance Processing Stations or the initial point of entry to 
Military Service. Applicants who enlist under a delayed enlistment 
program, but before entry on AD and who exhibit serologic evidence of 
HIV-1 infection, may be discharged due to erroneous enlistment.
    (c) Officer candidates shall be screened during their preappointment 
and/or precontracting physical examination. The disposition of officer 
applicants who are ineligible for appointment due to serologic evidence 
of HIV-1 infection shall be in accordance with the procedures in 
appendix A of this part.
    (d) Applicants for Reserve components shall be screened during the 
normal entry physical examinations or in the preappointment programs 
established for officers. Those individuals with serologic evidence of 
HIV-1 infection who are required to meet accession medical fitness 
standards to enlist, or be appointed, are not eligible for Military 
Service with the Reserve components.
    (e) Initial testing and periodic retesting of AD and Reserve 
component personnel shall be accomplished in the priority listed in 
Disease Surveillance and Health Education.\5\
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    \5\ See footnote 2 to Sec. 58.4(c).
---------------------------------------------------------------------------

    (f) AD personnel (including Active Guard and/or Reserve) who exhibit 
serologic evidence of HIV-1 infection shall receive a medical 
evaluation. Guard and Reserve personnel, not on extended AD, must obtain 
a medical evaluation from a civilian physician.
    (g) The Head of each Military Service shall appoint an HIV-1 and/or 
AIDS education program coordinator to serve as the focal point for all 
HIV-1 and/or AIDS education program issues and to integrate the 
educational activities of the medical and personnel departments.
    (h) An HIV-1 and/or AIDS Information and Education Coordinating 
Committee shall be established to enhance communication among the Heads 
of the Military Services, recommend joint education policy and program 
actions, review education program implementation, and recommend 
methodologies and procedures for program evaluation. That committee 
shall be chaired by a representative of the ASD(HA). Members shall 
include two representatives from the Office of the ASD(FM&P) 
(OASD(FM&P)), and the HIV-1 and/or AIDS education program coordinator 
from each Military Service. Additional members shall represent the Armed 
Services Blood Program Office and, on an ad hoc basis, the Office of the 
ASD(HA). Policy and program proposals shall be coordinated with the 
Secretaries of the Military Departments.
    (i) The Head of each Military Service shall prepare a plan for the 
implementation of a comprehensive HIV-1 and/or AIDS education program 
that includes specific objectives with measurable action steps. The plan 
shall address information, education, and behavior-change strategies, as 
described in Disease Surveillance and Health Education.
    (j) Civilians may not be mandatorily tested for serologic evidence 
of HIV-1 infection except as necessary to comply with valid host-nation 
requirements for screening of DoD employees.

[[Page 292]]

Procedures for mandatory screening of DoD civilians shall be in 
accordance with appendix B of this part.
    (k) The medical assessment of each exposure to, and/or case of, HIV-
1 infection seen at a military medical treatment facility (MTF) shall 
include an epidemiological assessment of the potential transmission of 
HIV-1 to other persons at risk of infection, including sexual and other 
intimate contacts and family of the patient, and transfusion history. 
The occurrence of HIV-1 infection or serologic evidence of HIV-1 
infection may not be used as a basis for any disciplinary action against 
an individual, except as described in Limitations on the Use of 
Information.\6\
---------------------------------------------------------------------------

    \6\ See footnote 2 to Sec. 58.4(c).
---------------------------------------------------------------------------

    (l) Each Head of a military medical service shall ensure conduction 
of an ongoing clinical evaluation of each AD Service member with 
serological evidence of HIV-1 infection at least annually. CD4 
lymphocyte percentages or counts shall be monitored at least every 6 
months. Appropriate preventive medicine counseling shall also be 
provided to all individual patients, and public health education 
materials shall be made available to that medical services' beneficiary 
population. Each Head of a military medical service shall ensure 
conduction of longitudinal clinical evaluations of AD Service members 
with serologic evidence of HIV-1 infection and shall ensure preparation 
of internal reports to facilitate timely review and reassessment of 
current policy guidelines.
    (m) All Heads of the military MTFs shall notify promptly the 
cognizant military health authority, when there is clinical or 
laboratory evidence indicative of infection with HIV-1, in accordance 
with appendix C of this part.
    (n) The Secretary of each Military Department shall ensure that a 
mechanism is established to gather data on the epidemiology of HIV-1 
infection of its members. Such epidemiological research shall be 
accomplished to ensure appropriate protection of information given by 
the Service member on the means of transmission.
    (o) The Secretary of the Army, as the Head of the lead Agency for 
infectious disease research within the Department of Defense, shall 
budget for and fund tri-Military Department DoD HIV-1 research efforts, 
in accordance with guidance provided by the ASD(HA). The research 
program shall focus on the epidemiology and natural history of HIV-1 
infections in military and military associated populations; on improving 
the methods for rapid diagnosis and patient evaluation; and on studies 
of the immune response to HIV-1 infection, including the potential for 
increased risk in the military operational environment.
    (p) Service members with serologic evidence of HIV-1 infection shall 
be assigned within the United States, including Alaska, Hawaii, and 
Puerto Rico, due to the high priority assigned to the continued medical 
evaluation of military personnel. The Secretaries of the Military 
Departments may restrict such individuals to nondeployable units or 
positions for purposes of force readiness. To protect the health and 
safety of Service members with serologic evidence of HIV-1 infection and 
of other Service members (and for no other reason), the Secretaries of 
the Military Departments may, on a case-by-case basis, limit assignment 
of HIV-1-infected individuals on the nature and location of the duties 
performed in accordance with operational requirements.
    (q) AD and Reserve component personnel with serologic evidence of 
HIV-1 infection shall be retained or separated in accordance with 
Retention and Separation.\7\
---------------------------------------------------------------------------

    \7\ See footnote 2 to Sec. 58.4(c).
---------------------------------------------------------------------------

    (r) The ASD(HA), in coordination with the Heads of the Military 
Services, shall revise Standard Clinical Protocol, HIV-1 Testing and 
Interpretation of Results, Disease Surveillance and Health Education, 
Procedure for Evaluating T-Helper Cell Count, as appropriate. The 
ASD(FM&P) shall revise appendix B to this part, as appropriate, through 
publication in the Federal Register. Revisions under this paragraph 
shall be in coordination with the GC, DoD.

[[Page 293]]

       Appendix A to Part 58--Administration of Officer Applicants

    Administration of officer applicants who are ineligible for 
appointment, due to serologic evidence of HIV-1 infection, shall be in 
accordance with the following provisions:
    A. Enlisted members who are candidates for appointment through 
Officer Candidate School (OCS) or Officer Training School (OTS) programs 
shall be disenrolled immediately from the program. If OCS and/or OTS is 
the individual's initial entry training, the individual shall be 
discharged. If the sole basis for discharge is serologic evidence of 
HIV-1 infection, an honorable or entry-level discharge, as appropriate, 
shall be issued. A candidate who has completed initial entry training 
during the current period of service before entry into candidate status 
shall be administered in accordance with Service regulations for 
enlisted personnel.
    B. Individuals in preappointment programs, such as Reserve Officer 
Training Corps (ROTC) and Health Professions Scholarship Program 
participants, shall be disenrolled from the program. However, the Head 
of the Military Service concerned, or the designated representative, may 
delay disenrollment to the end of the academic term (i.e., semester, 
quarter, or similar period) in which serologic evidence of HIV-1 
infection is confirmed. Disenrolled participants shall be permitted to 
retain any financial support through the end of the academic term in 
which the disenrollment is effected. Financial assistance received in 
these programs is not subject to recoupment, if the sole basis for 
disenrollment is serologic evidence of HIV-1 infection.
    C. Service academy cadets, midshipmen, and personnel attending the 
Uniformed Services University of the Health Sciences (USUHS) shall be 
separated from the respective Service academy or USUHS and discharged. 
The Head of the Military Service concerned, or the designated 
representative, may delay separation to the end of the current academic 
year. A cadet or midshipman granted such a delay in the final academic 
year, who is otherwise qualified, may be graduated without commission 
and, thereafter, discharged. If the sole basis for discharge is 
serologic evidence of HIV-1 infection, an honorable discharge shall be 
issued.
    D. Commissioned officers in DoD-sponsored professional education 
programs leading to appointment in a professional military specialty 
(including, but not limited to, medical, dental, chaplain, and legal 
and/or judge advocate) shall be disenrolled from the program at the end 
of the academic term in which serologic evidence of HIV-1 infection is 
confirmed. Disenrolled officers shall be administered in accordance with 
Service regulations. Except as specifically prohibited by statute, any 
additional Service obligation incurred by participation in such programs 
shall be waived, and financial assistance received in these programs 
shall not be subject to recoupment. Periods spent by such officers in 
these programs shall be applied fully toward satisfaction of any 
preexisting Service obligation.
    E. All personnel disenrolled from officer programs who are to be 
separated shall be given appropriate counseling, to include preventive 
medicine counseling and advice to seek treatment from a civilian 
physician.

     Appendix B to Part 58--HIV-1 Testing of DoD Civilian Employees

    A. Requests for authority to screen DoD civilian employees for HIV-1 
shall be directed to the ASD(FM&P). Only requests that are based on a 
host-nation HIV-1 screening requirement shall be accepted. Requests 
based on other concerns, such as sensitive foreign policy or medical 
healthcare issues, shall not be considered under this part. Approvals 
shall be provided in writing by the ASD(FM&P). Approvals shall apply to 
all of the Heads of the DoD Components that may have activities located 
in the host nation.
    B. Specific HIV-1 screening requirements may apply to DoD civilian 
employees currently assigned to positions in the host nation, and to 
prospective employees. When applied to prospective employees, HIV-1 
screening shall be considered as a requirement imposed by another nation 
that must be met before the final decision to select the individual for 
a position or before approving temporary duty or detail to the host 
nation. The Secretary of Defense has made no official commitment, for 
positions located in host nations with HIV-1 screening requirements, to 
those individuals who refuse to cooperate with the screening requirement 
or to those who cooperate and are diagnosed as HIV-1 seropositive.
    C. DoD civilian employees who refuse to cooperate with the screening 
requirement shall be treated, as follows:
    1. Those who volunteered for the assignment, whether permanent or 
temporary, shall be retained in their official position without further 
action and without prejudice to employee benefits, career progression 
opportunities, or other personnel actions to which those employees are 
entitled under applicable law or regulation.
    2. Those who are obligated to accept asssignment to the host nation 
under the terms of an employment agreement, regularly scheduled tour of 
duty, or similar and/or prior obligation may be subjected to an 
appropriate adverse personnel action under the specific terms of the 
employment agreement or other authorities that may apply.
    3. Host-nation screening requirements, which apply to DoD civilian 
employees currently located in that county, also must be

[[Page 294]]

observed. Appropriate personnel actions may be taken, without prejudice 
to employee rights and privileges, to comply with the requirements.
    D. Individuals who are not employed in the host nation, who accept 
the screening, and who are evaluated as HIV-1 seropositive shall be 
denied the assignment on the basis that evidence of seronegativity is 
required by the host nation. If denied the assignment, such DoD 
employees shall be retained in their current positions without 
prejudice. Appropriate personnel actions may be taken, without prejudice 
to employee rights and privileges, on DoD civilian employees currently 
located in the host nation. In all cases, employees shall be given 
proper counseling and shall retain all the rights and benefits to which 
they are entitled, including accommodations for the handicapped as in 
the ASD(FM&P) Memorandum \1\ ``Information and Guidance on Human 
Immunodeficiency Virus (HIV)'' January 22, 1988 and FPM Bulletin, 792-42 
\2\ and for employees in the United States (29 U.S.C. 794). Non-DoD 
employees should be referred to appropriate support service 
organizations.
---------------------------------------------------------------------------

    \1\ See footnote 2 to Sec. 58.4(c).
    \2\ See footnote 2 to Sec. 58.4(c).
---------------------------------------------------------------------------

    E. Some host nations may not bar entry to HIV-1-seropositive DoD 
civilian employees, but may require reporting of such individuals to 
host-nation authorities. In such cases, DoD civilian employees who are 
evaluated as HIV-1 seropositive shall be informed of the reporting 
requirements. They shall be counseled and given the option of declining 
the assignment and retaining their official positions without prejudice 
or notification to the host nation. If assignment is accepted, the 
requesting authority shall release the HIV-1 seropositive result, as 
required. Employees currently located in the host nation may also 
decline to have seropositive results released. In such cases, they may 
request and shall be granted early return at Government expense or other 
appropriate personnel action without prejudice to employee rights and 
privileges.
    F. A positive confirmatory test by WB must be accomplished on an 
individual if the screening test (ELISA) is positive. A civilian 
employee may not be identified as HIV-1 antibody positive, unless the 
confirmatory test (WB) is positive. The clinical standards in this 
Directive shall be observed during initial and confirmatory testing.
    G. Procedures shall be established by the Heads of the DoD 
Components to protect the confidentiality of test results for all 
individuals, consistent with the ASD(FM&P) Memorandum and DoD Directive 
5400.11.\3\
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 58.4(c).
---------------------------------------------------------------------------

    H. Tests shall be provided by the Heads of the DoD Components at no 
cost to the DoD civilian employees, including applicants.
    I. DoD civilian employees infected with HIV-1 shall be counseled 
appropriately.

   Appendix C to Part 58--Personnel Notification and Epidemiological 
                              Investigation

                        A. Personnel Notification

    1. On notification by a medical health authority of an individual 
with serologic or other laboratory or clinical evidence of HIV-1 
infection, the cognizant military health authority shall undertake 
preventive medicine intervention, including counseling of the individual 
and others at risk of infection, such as his or her sexual contacts (who 
are military healthcare beneficiaries), on transmission of the virus. 
The cognizant military health authority shall coordinate with the Heads 
of the military and civilian blood bank organizations and preventive 
medicine authorities to trace back possible exposure through blood 
transfusion or donation of infected blood (ASD(HA)) Memorandum and refer 
appropriate case-contact information to the appropriate military or 
civilian health authority.
    2. All individuals with serologic evidence of HIV-1 infection who 
are military healthcare beneficiaries shall be counseled by a physician 
or a designated healthcare provider on the significance of a positive 
antibody test. They shall be advised as to the mode of transmission of 
that virus, the appropriate precautions and personal hygiene measures 
required to minimize transmission through sexual activities and/or 
intimate contact with blood or blood products, and of the need to advise 
any past sexual partners of their infection. Women shall be advised of 
the risk of perinatal transmission during past, current, and future 
pregnancies. The infected individuals shall be informed that they are 
ineligible to donate blood and shall be placed on a permanent donor 
deferral list.
    3. Service members identified to be at risk shall be counseled and 
tested for serologic evidence of HIV-1 infection. Other DoD 
beneficiaries, such as retirees and family members, identified to be at 
risk shall be informed of their risk and offered serologic testing, 
clinical evaluation, and counseling. The names of individuals identified 
to be at risk who are not eligible for military healthcare shall be 
provided to civilian health authorities in the local area where the 
index case is identified, unless prohibited by the appropriate State or 
host-nation civilian health authority. Such notification shall comply 
with the Privacy Act (5 U.S.C. 552a). Anonymity of the HIV-1 index case

[[Page 295]]

shall be maintained, unless reporting is required by civil authorities.
    4. Blood donors who demonstrate repeatedly reactive ELISA tests for 
HIV-1, but for whom WB or other confirmatory test is negative or 
indeterminate, and who cannot be reentered into the blood donor pool 
shall be appropriately counseled.

                    B. Epidemiological Investigation

    1. Epidemiological investigation shall attempt to determine 
potential contacts of patients who have serologic or other laboratory or 
clinical evidence of HIV-1 infection. The patient shall be informed of 
the importance of case-contact notification to interrupt disease 
transmission and shall be informed that contacts shall be advised or 
their potential exposure to HIV-1. Individuals at risk of infection 
include sexual contacts (male and female); children born to infected 
mothers; recipients of blood, blood products, organs, tissues, or sperm; 
and users of contaminated intravenous drug paraphernalia. Those 
individuals determined to be at risk who are identified and who are 
eligible for healthcare in the military medical system shall be 
notified. Additionally, the Secretaries of the Military Departments 
shall provide for the notification, either through local public health 
authorities or by DoD healthcare professionals, of the spouses of 
Reserve component members found to be HIV-1-infected. Such notifications 
shall comply with the Privacy Act (5 U.S.C. 552a). The Secretaries of 
the Military Departments shall designate all spouses (regardless of the 
Service affiliation of the HIV-1-infected Reservist) who are notified 
under this provision to receive serologic testing and counseling on a 
voluntary basis from MTFs under the Secretaries' of the Military 
Departments jurisdiction.
    2. Communicable disease reporting procedures of civil authorities 
shall be followed to the extent consistent with this Directive through 
liaison between the military public health authorities and the 
appropriate local, State, territorial, Federal, or host-nation health 
jurisdiction.



PART 59--VOLUNTARY MILITARY PAY ALLOTMENTS--Table of Contents




Sec.
59.1  Purpose.
59.2  Applicability.
59.3  Policy.
59.4  Responsibilities.

    Authority: 37 U.S.C. chapter 13.

    Source: 52 FR 34215, Sept. 10, 1987, unless otherwise noted.



Sec. 59.1  Purpose.

    This part updates the policies that implement title 37 U.S. Code, 
chapter 13 and govern voluntary allotments of pay and allowances for 
active and retired members.



Sec. 59.2  Applicability.

    This part applies to the Office of the Secretary of Defense and the 
Military Departments. The term ``Military Service,'' as used herein, 
refers to the Army, Navy, Air Force, and Marine Corps.



Sec. 59.3  Policy.

    (a) General. (1) The voluntary allotment system is provided 
primarily as a means to assist military members in accommodating their 
personal and family financial responsibilities to the exigencies of 
military service. It is a convenience and privilege not to be exploited 
or abused. To avoid unjustifiable expense to the government, its use 
shall be limited to the purposes outlined in the following paragraphs.
    (2) All existing approved registered allotments of military pay and 
allowances for active duty and retired members that were authorized 
previously by this part at the time registered may be continued as 
approved allotments. However, if any such allotments are discontinued, 
they may not be reestablished except as a new allotment in accordance 
with the requirements of this part. Any change in the allotment that is 
initiated by the service member is considered a discontinuance, except 
those that are beyond the control of the service member.
    (3) Changes beyond the control of the service member are changes 
that are of an administrative nature dictated by events incidental to 
the purpose of the allotment. Examples of administrative changes that 
are beyond the control of the service member are: name and address 
changes by the payee or amount changes due to contractual obligation 
existing at the time the allotment was executed, such as a mortgage 
payment change because of a variable rate mortgage or changing escrow 
requirements. Although the changes given above do not constitute a 
discontinuance, such administrative changes that adjust the

[[Page 296]]

amount of the allotment shall be accepted only when communicated by the 
service member on a new allotment request. Discontinuance occurs with 
any mortgage refinancing action.
    (4) A change in allotment initiated by an organizational allottee 
may be accepted when the change is documented properly, is of an 
administrative nature, and does not increase the amount allotted.
    (b) Active Military Service. Voluntary allotments of military pay 
and allowances of service members in active military service shall be 
limited to the following:
    (1) The purchase of U.S. savings bonds.
    (2) The payment of premiums for insurance on the life of the 
allotter, including U.S. Government Life Insurance, National Service 
Life Insurance, Veterans Group Life Insurance, Navy Mutual Aid 
Insurance, Army Mutual Aid Insurance, and commercial life insurance.
    (i) Allotments for insurance on the lives of a spouse or children.
    (ii) Allotments for health, accident, or hospitalization insurance 
or other contracts that, as a secondary or incidental feature, include 
insurance on the life of the service member are not authorized.
    (iii) Requests to initiate commercial life insurance allotments 
shall be processed only after compliance with requirements of 32 CFR 
part 276.
    (3) The repayment of loans to the Navy Relief Society, Army 
Emergency Relief, Air Force Aid Society, and American Red Cross.
    (4) Allotments to a spouse, former spouses, other dependents, and 
relatives who are not designated legally as dependents. The payment of 
such an allotment to a financial institution or association shall not 
deprive a service member of the use of the allotments authorized by 
paragraph (b)(6) of this section.
    (5) The voluntary liquidation of indebtedness to the United States.
    (i) This includes indebtedness incurred by reason of defaulted notes 
insured by the Federal Housing Administration or guaranteed by the 
Veterans Administration (VA); payment of amounts due under the Retired 
Serviceman's Family Protection Plan, in the case of retired service 
members serving on active duty; payment of delinquent Federal income 
taxes; and other indebtedness to any department or agency of the U.S. 
Government, except to the department paying the service member.
    (ii) This includes repayment of debts owed to an organization for 
funds administered on behalf of the U.S. Government and any such debts 
assigned to a collection agency.
    (6) The payment to a financial organization for credit to an account 
of the service member. A financial organization is any bank, savings 
bank, savings and loan association or similar institution, or Federal or 
State chartered credit union. Monies thus credited to the service 
member's account may then be used for any purpose in accordance with the 
desires and direction of the service member. No more than two such 
allotments under this paragraph shall be allowed any service member at 
any one time.
    (7) Repayment of loans obtained for the purchase of a home, 
including a mobile home or house trailer used as a residence by the 
service member. This does not authorize repayment of loans for business 
purposes or for additions or improvements to homes, mobile homes, or 
house trailers. Allotments authorized herein are in addition to those 
authorized under paragraph (b)(6) of this section. Only one such 
allotment shall be allowed any service member at any one time.
    (8) Charitable contributions to the following:
    (i) A Combined Federal Campaign, in accordance with DOD Directive 
5035.1, ``Fund-Raising Within the Department of Defense,'' April 7, 
1978, and DOD Instruction 5035.5, ``DoD Combined Federal Campaign-
Overseas Areas (CFC-OA),'' August 23, 1978.
    (ii) Army Emergency Relief, Navy Relief Society, or affiliates of 
the Air Force Assistance Fund.
    (9) Deposits to the account of a service member participating in the 
Uniformed Services Savings Deposit Program under 10 U.S.C. 1035. This 
program is limited to service members in a missing status as a result of 
the Vietnam conflict.

[[Page 297]]

    (10) Allotments to the VA for deposit to the Post-Vietnam Era 
Veterans Education Account within the periodic and cumulative depository 
limitations specified in DOD Directive 1322.8, ``Voluntary Educational 
Programs for Military Personnel,'' July 23, 1987. Once authorized by the 
service member, the allotments must run a minimum of 12 consecutive 
months, unless the service member suspends participation or disenrolls 
from the program because of personal hardship
    (11) Payment of delinquent State or local income or employment 
taxes.
    (12) Dental and health insurance allotments for the benefit of the 
families of service members.
    (c) Retired military personnel. (1) Voluntary allotments be service 
members receiving retired or retainer pay shall be limited to the 
following:
    (i) Purchase of U.S. savings bonds.
    (ii) Payment of premiums for insurance on the life of the service 
member including U.S. Government Life Insurance, National Service Life 
Insurance, Veterans Group Life Insurance, Navy Mutual Aid Insurance, 
Army Mutual Aid Insurance, and commercial life insurance, subject to the 
limitations prescribed in paragraph (b)(2) (i) and (ii) of this section.
    (iii) Voluntary liquidation of indebtedness to the United States, 
subject to the limitations prescribed in paragraph (b)(5) of this 
section--
    (iv) Allotments to a spouse, former spouse, and/or children of the 
retired service member having a permanent residence other than that of 
the retired service member.
    (v) Charitable contributions to the Army Emergency Relief, Navy 
Relief Society, or affiliates of the Air Force Assistance Fund.
    (vi) The repayment of loans to the Army Emergency Relief, Navy 
Relief Society, Air Force Aid Society, or American Red Cross.
    (2) To assist personnel in the transition from active duty to 
retired status, all allotments authorized for active duty service 
members may be continued, except those allotments in paragraph (b) 
(8)(i), (9) and (10) of this section. However, if an allotment continued 
from active duty, but not authorized by paragraph (c)(1) of this section 
is discontinued by the retiree, such an allotment may not be 
reestablished.
    (d) Exclusions and Restrictions. (1) The amount of pay and 
allowances that may be allotted shall exclude amounts required to be 
withheld for taxes, liquidations of indebtedness determined under 
applicable provisions of law to be chargeable against the service 
member's pay account, or required premiums on Servicemen's Group Life 
Insurance.
    (2) The total amount that may be allotted shall comply with the 
restrictions in the DOD Military Pay and Allowances Entitlements Manual 
and DOD 1340.12-M, ``DOD Military Retired Pay Manual.''
    (e) Control and use of forms. (1) Allotment requests shall be 
accepted only on authorized allotment forms, unless otherwise provided 
in this part. Supplies of allotment forms shall not be made available to 
non-Federal organizations, except that each Military Department may 
authorize issuance of forms to the Army Emergency Relief, Navy Relief 
Society, the Air Force Aid Society, and American Red Cross.
    (2) Active duty enlisted service members shall sign the allotment 
authorization form in the presence of the service member's commanding 
officer, personnel or disbursing officer, or one of their representative 
who shall witness the signature. The Military Departments may waive this 
requirement for senior enlisted service members and loan repayment 
allotments payable to the Army Emergency Relief, Navy Relief Society, 
the Air Force Aid Society, and American Red Cross.
    (3) Charitable contribution allotment requests by enlisted members 
may be accepted without a witnessing official, when submitted on 
contribution forms in accordance with DOD Directive 5035.1 and DOD 
Instruction 5035.5.
    (4) Retired military personnel need not submit allotment requests on 
the prescribed forms. A signed personal letter may be used to support an 
allotment request, change, or cancellation by retired military members 
as long as all required information is provided.

[[Page 298]]



Sec. 59.4  Responsibilities.

    (a) The Assistant Secretary of Defense (Comptroller) shall exercise 
primary management responsibility for the voluntary military pay 
allotment program and provide assistance to the Military Departments in 
the form of instructions, requirements, reviews, and other guidance.
    (b) The Secretaries of the Military Departments shall ensure that 
this part is implemented by the Military Services concerned.



PART 61--MEDICAL MALPRACTICE CLAIMS AGAINST MILITARY AND CIVILIAN PERSONNEL OF THE ARMED FORCES--Table of Contents




Sec.
61.1  Purpose.
61.2  Applicability.
61.3  Delegation of authority.
61.4  Procedures.

    Authority: Pub. L. 94-464, sec. 1(a), 90 Stat. 1985, 10 U.S.C. 
1089(f), 2733 and 5 U.S.C. 301.

    Source: 43 FR 15148, Apr. 11, 1978, unless otherwise noted.



Sec. 61.1  Purpose.

    This Directive: (a) Delegates authority, with the power to 
redelegate, to the Secretaries of the Military Departments to provide 
relief to health care personnel of the Department of Defense from 
personal tort liability in connection with their authorized activities, 
and (b) establishes procedures to be followed in providing such relief.



Sec. 61.2  Applicability.

    The provisions of this Directive apply to the Office of the 
Secretary of Defense, the Military Departments, and all other Department 
of Defense Components.



Sec. 61.3  Delegation of authority.

    (a) The authority vested in the Secretary of Defense by title 10 
U.S.C. section 1089(f) hold harmless or provide liability insurance for 
Department of Defense health care personnel is hereby delegated to:
    (1) The Secretary of each Military Department for military members 
and civilian employees of his Department, and
    (2) The Secretary of the Army for civilian employees of the Office 
of the Secretary of Defense and Department of Defense Components other 
than the Military Departments (see DoD Directive 5515.9).\1\
---------------------------------------------------------------------------

    \1\ Filed as part of original. Copies may be obtained, if needed, 
from the U.S. Naval Publications and Forms Center, 5801 Tabor Avenue, 
Philadelphia, Pa. 19120 Attention: Code 301.
---------------------------------------------------------------------------

    (b) The authority delegated above may be redelegated as appropriate 
and necessary to carry out the provisions of title 10, U.S.C., section 
1089(f).



Sec. 61.4  Procedures.

    (a) In all cases under title 10 U.S.C. section 1089, medical 
personnel shall be required to:
    (1) Promptly forward all process served upon them or attested true 
copies thereof to the appropriate official designated by the Secretary 
of the Military Department concerned;
    (2) Furnish such other information and documents as the Attorney 
General may request; and
    (3) Comply with the directions of the Attorney General relative to 
the final disposition of a claim for damages.
    (b) The procedures set forth in title 10 U.S.C. section 2733 and 
regulations issued pursuant thereto shall be utilized in determining 
costs, settlements, or judgments under title 10 U.S.C. section 1089(f).



PART 62--ALCOHOL AND DRUG ABUSE BY DoD PERSONNEL--Table of Contents




Sec.
62.1  Purpose.
62.2  Applicability.
62.3  Definitions.
62.4  Policy.
62.5  Responsibilities.

    Authority: 5 U.S.C. 301, Pub. L. 92-255, 91-616, 92-129, and 91-513.

    Source: 45 FR 61615, Sept. 17, 1980, unless otherwise noted.



Sec. 62.1  Purpose.

    (a) This part states the DoD alcohol and drug abuse prevention 
policy, and implements the standards contained in

[[Page 299]]

Pub. L. 92-255 (86 Stat 65), as amended, 91-616 (84 Stat 1848), as 
amended, and 92-129 (85 Stat 361), as amended, and the Federal Personnel 
Manual (FPM) Supplement 792-2, February 1980.
    (b) In addition, this part establishes policy concerning drug abuse 
paraphernalia.



Sec. 62.2  Applicability.

    The provisions of this part apply to the Office of the Secretary of 
Defense, the Military Departments, the Organization of the Joint Chiefs 
of Staff, the Unified and Specified Commands, and the Defense Agencies. 
The term ``Military Services'' includes the Army, Navy, Air Force, and 
Marine Corps.



Sec. 62.3  Definitions.

    The following definitions are for operational use within the 
Department of Defense. They do not change definitions in statutory 
provisions and those regulations and directives that are concerned with 
determination of misconduct and criminal or civil responsibilities for 
persons' acts or omissions.
    (a) Alcohol and drug abuse. The use of alcohol and/or other drugs to 
an extent that it has an adverse effect on the user's health or 
behavior, family, community, or the Department of Defense and/or the 
illegal use of such substances.
    (b) Drug trafficking. The illegal or wrongful introduction of drugs 
into a military installation, with the intent of selling or transferring 
the drugs; or the illegal or wrongful sale, transfer, or distribution of 
drugs as they are listed in current schedules of the Controlled 
Substances Act, title II, Comprehensive Drug Abuse and Control Act of 
1970 (Pub. L. 91-513) (21 CFR parts 1300-1316).
    (c) Alcohol and drug dependence. The reliance on alcohol and/or 
other drugs following administration on a periodic or continuing basis. 
Dependence may be psychological or physical, or both.
    (1) Psychological dependence. The craving for the mental or 
emotional effects of a drug that manifests itself in repeated use and 
leads to a state of impaired capability to perform normal functions.
    (2) Physical dependence. An alteration or state of adaptation to a 
drug after repeated use that results in withdrawal symptoms when the 
drug is discontinued abruptly and/or the development of tolerance.
    (d) Drug abuse paraphernalia. All equipment, products, and materials 
of any kind that are used, intended for use, or designed for use, in 
planting, propagating, cultivating, growing, harvesting, manufacturing, 
compounding, converting, producing, processing, preparing, testing, 
analyzing, packaging, repackaging, storing, containing, concealing, 
injecting, ingesting, inhaling, or otherwise introducing into the human 
body a controlled substance in violation of the Controlled Substances 
Act.



Sec. 62.4  Policy.

    (a) It is the goal of the Department of Defense to be free of the 
effects of alcohol and drug abuse; of the possession of and trafficking 
in illicit drugs by military and civilian members of the Department of 
Defense; and of the possession, use, sale, or promotion of drug abuse 
paraphernalia. Alcohol and drug abuse is incompatible with the 
maintenance of high standards of performance, military discipline, and 
readiness. Therefore, it is the policy of the Department of Defense to:
    (1) Assess the alcohol and drug abuse and drug trafficking situation 
in or influencing the Department of Defense.
    (2) Not induct persons into the Military Services who are alcohol or 
drug dependent and not hire persons who are alcohol or drug dependent if 
that dependency impairs job performance.
    (3) Deter and detect alcohol and drug abuse within the Armed Forces 
and defense community and drug trafficking on installations and 
facilities under the control of the Department of Defense.
    (4) Provide continuing education and training to commanders, 
supervisors, program personnel, and other military members and civilian 
employees and their families concerning this policy and effective 
measures to alleviate problems associated with alcohol and drug abuse.
    (5) Treat or counsel alcohol and drug abusers and rehabilitate the 
maximum feasible number of them.
    (6) Discipline and/or discharge drug traffickers and those alcohol 
and drug

[[Page 300]]

abusers who cannot or will not be rehabilitated, in accordance with 
appropriate laws, regulations, and instructions.
    (7) Work in concert with national alcohol and drug abuse prevention 
programs, maintaining appropriate relationships with governmental and 
nongovernmental agencies.
    (8) Prohibit members of the Armed Forces, and DoD civilians while on 
the job, to possess, sell, or use drug abuse paraphernalia.
    (9) Prohibit the possession or sale of drug abuse paraphernalia by 
DoD resale outlets to include military exchanges, open messes, and 
commissaries, and by private organizations and concessions located on 
DoD installations.
    (b) The Department of Defense encourages DoD Components to use, as 
guidance and as a legal background in addressing paraphernalia issues, 
the Model Drug Paraphernalia Act prepared by the Drug Enforcement 
Administration, at the request of the President (Model Drug 
Paraphernalia Act, Drug Enforcement, March 1980, Volume 7, No. 1).
    (c) Programs and standards of care promulgated in execution of this 
policy for military personnel shall be in compliance with Pub. L. 92-
129.
    (d) Programs and standards of care promulgated in execution of this 
policy for civilian employees shall be in compliance with Pub. L. 92-
255, Pub. L. 91-616, and FPM Supplement 792-2.



Sec. 62.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Health Affairs) (ASD(HA)), 
or designated representative, is responsible for the development, 
coordination, and supervision of the DoD alcohol and drug abuse 
prevention program, in accordance with this part and shall:
    (1) In coordination with the Assistant Secretary of Defense 
(Manpower, Reserve Affairs, and Logistics) (ASD(MRA&L)), develop and 
promulgate policies designed to ensure that the DoD alcohol and drug 
abuse prevention programs reach military members, their families, DoD 
civilian employees and, to the extent feasible, their families. Programs 
and standards of care for family members shall be consistent with those 
for the military and civilian components, with accepted practice in the 
alcohol and drug abuse area, and with applicable laws and jurisdictional 
limitations.
    (2) In coordination with the ASD(MRA&L), issue DoD instructions to 
implement the DoD alcohol and drug abuse prevention program, with 
specific attention to the functional areas of assessment, deterrence and 
detection, treatment and rehabilitation, and education and training.
    (3) Act as focal point for the Department of Defense for interagency 
and nongovernmental coordination of national alcohol and drug abuse 
prevention programs.
    (4) Evaluate and report upon the effectiveness and efficiency of the 
DoD alcohol and drug abuse prevention program.
    (5) Establish a DoD Alcohol and Drug Abuse Advisory Committee to 
advise on policy and program matters. The Committee shall include 
representatives of each Military Service, designated by the Military 
Department concerned, and such other advisors as the ASD(HA), or 
designated representative, considers appropriate. The Committee charter 
shall be approved by the ASD(HA).
    (b) The Secretaries of the Military Departments and Directors of 
Defense Agencies shall establish and operate programs prescribed by this 
part and supporting DoD instructions. They may make exceptions to the 
policy contained in this part only for legitimate medical, educational, 
and operational purposes. This authority shall not be delegated.
    (c) In addition, the Secretaries of the Military Departments shall 
require appropriate commanders to assess the availability of drug abuse 
paraphernalia in the vicinity of DoD installations through their Armed 
Forces Disciplinary Control Boards and in conformity with the Armed 
Forces Disciplinary Control Boards and Off-Installation Military 
Enforcement Guidance, and take appropriate action, when the availability 
of drug abuse paraphernalia reveals a threat to the discipline, health, 
welfare, or morals of the Armed Forces.

[[Page 301]]



PART 62b--DRUNK AND DRUGGED DRIVING BY DoD PERSONNEL--Table of Contents




Sec.
62b.1  Purpose.
62b.2  Applicability.
62b.3  Policy.
62b.4  Procedures.
62b.5  Responsibilities.
62b.6  DoD Intoxicated Driving Prevention Task Force.
62b.7  Definitions.

Appendix 1 to Part 62b--Driver's License Information (Sample Letter)
Appendix 2 to Part 62b--State Driver's License Agencies

    Authority: 10 U.S.C. 131.

    Source: 48 FR 41581, Sept. 16, 1983, unless otherwise noted.



Sec. 62b.1  Purpose.

    This part:
    (a) Establishes DoD policy regarding drunk and drugged driving by 
DoD personnel (hereafter referred to as ``intoxicated driving'').
    (b) Assigns responsibility for and explains DoD policy and 
procedures on the establishment and operation of the DoD Intoxicated 
Driving Prevention Program, which is designed to address the problem of 
and increase the awareness and attention given to intoxicated driving by 
DoD personnel.
    (c) Establishes the DoD Intoxicated Driving Prevention Task Force 
(DIDPTF).



Sec. 62b.2  Applicability.

    This part applies to the Office of the Secretary of Defense, the 
Military Departments, the Organization of the Joint Chiefs of Staff, the 
Unified and Specified Commands, and the Defense Agencies (hereafter 
referred to collectively as ``DoD Components''). The term ``Military 
Services,'' as used herein, refers to the Army, Navy, Air Force, and 
Marine Corps.



Sec. 62b.3  Policy.

    (a) Intoxicated driving is incompatible with the maintenance of high 
standards of performance, military discipline, DoD personnel 
reliability, and readiness of military units and supporting activities. 
It is DoD policy to reduce significantly the incidence of intoxicated 
driving within the Department of Defense through a coordinated program 
of education, indentification, law enforcement, and treatment. 
Specifically, the goal of the DoD Intoxicated Driving Prevention Program 
is to reduce the number of fatalities and injuries suffered by DoD 
personnel and the amount of property damage that result from intoxicated 
driving. Persons who engage in intoxicated driving, regardless of the 
geographic location of the incident, have demonstrated a serious 
disregard for the safety of themselves and others. It is appropriate for 
military commanders, in the exercise of their inherent authority, to 
protect the mission of an installation and the safety of persons and 
property therein to restrict driving privileges of persons who engage in 
such actions.
    (b) The Department of Defense shall participate in the national 
effort to prevent intoxicated driving by maintaining appropriate 
relationships with other governmental agencies and private organizations 
and shall cooperate with responsible civil authorities consistent with 
statutory and regulatory constraints in detecting, identifying, 
apprehending, prosecuting, educating, and counseling intoxicated drivers 
and in reporting cases as required by State laws and applicable Status 
of Forces Agreements.



Sec. 62b.4  Procedures.

    (a) Education and training. (1) The Military Services shall provide 
drug and alcohol education that focuses on intoxicated driving for each 
of the following: law enforcement, public information, emergency room, 
and safety personnel. Club managers, bartenders, and waitresses serving 
alcoholic beverages and Class VI or package sales personnel shall 
receive annual refresher training. In addition, leadership curricula at 
all levels (PCO/PXO indoctrination, training for judge advocates and 
military judges, and officer and noncommissioned officer schools) shall 
include specific information and a review of current Military Service 
policy on intoxicated driving.
    (2) Other DoD Components shall provide similar instruction in 
conjunction with the training and education requirements of part 62a of 
this title.

[[Page 302]]

    (3) DoD Components shall cooperate, to the extent feasible and 
permitted by law and regulation, with community leaders and existing 
grassroots organizations that are working to combat intoxicated driving, 
in planning and implementing local education efforts.
    (b) Suspension of driving privileges. Each DoD Component of its 
supporting agency that regulates driving privileges shall establish 
procedures for mandatory suspension of driving privileges on military 
installations and in areas subject to military traffic supervision. They 
shall establish procedures for acquiring arrest reports and other 
official documentation of intoxicated driving incidents consistent with 
applicable laws and regulations. Such procedures shall be sufficiently 
flexible to meet local needs.
    (1) Military personnel and their family members, retired members of 
the Military Services, DoD civilian personnel, and others with 
installation driving privileges may have those driving privileges 
suspended, regardless of the geographic location of an intoxicated 
driving incident.
    (i) Suspension is authorized for non-DoD civilians only with respect 
to incidents occurring on the military installation or in areas subject 
to military traffic supervision.
    (ii) With respect to DoD civilian personnel covered by a negotiated 
agreement, a suspension under this paragraph may be reviewed only to the 
extent required by the negotiated agreement applicable to the affected 
employee. Such matters mandatorily are excluded from DoD Component 
administrative grievance procedures. A grievance under such a procedure 
will not delay imposition of a preliminary or 1-year suspension of 
driving privileges.
    (iii) A notice of suspension will not become effective until 24 
hours after the incident for which a suspension is imposed. However, 
this provision does not preclude appropriate action to prevent an 
intoxicated person from operating a motor vehicle, nor does it affect 
the validity of an earlier suspension imposed on the same individual.
    (iv) A hearing authorized under paragraph (b) (2), (3), or (5) of 
this section, shall be conducted by the installation commander. The 
power to conduct a hearing and make a decision may be delegated only to 
an official whose primary duties are not in the field of law 
enforcement. At a hearing under this paragraph, the individual shall 
have the right to present evidence and witnesses at his or her own 
expense. The individual may be represented by counsel at his or her own 
expense. DoD civilian personnel may have a personal representative 
present in accordance with applicable laws and regulations.
    (2) Suspension based upon lawful apprehension. (i) Preliminary 
suspension of driving privileges is mandatory based upon an arrest 
report or other official documentation of the circumstances of an 
apprehension for intoxicated driving.
    (ii) The individual shall be notified in writing of the preliminary 
suspension. The notice shall include the arrest report or other 
documentation and shall inform the individual that a 1-year suspension 
can be imposed upon conviction, imposition of nonjudicial punishment, or 
action by civilian authorities leading to suspension or revocation of 
the individual's driver's license. The notice shall inform the 
individual that he or she has the right to submit a request within 5 
working days to vacate the preliminary suspension and that failure to 
request such a hearing will result in continuation of the preliminary 
suspension.
    (iii) If a hearing has not been requested within 5 working days, the 
preliminary suspension shall be continued until there has been a 
criminal, nonjudicial, or administrative disposition.
    (iv) If the individual requests a hearing to vacate the preliminary 
suspension, it shall be held within 10 working days of the request. If 
the official conducting the hearing determines that the apprehension was 
based upon probable cause, the preliminary suspension shall be 
continued; if not, it shall be vacated. Such determinations are solely 
for purposes of acting on the preliminary suspension and are without 
prejudice to the rights of any party in a subsequent criminal or 
administrative proceeding involving the same or a related incident.
    (v) If the individual is acquitted, the charges are dismissed, or 
there is an

[[Page 303]]

equivalent determination in a nonjudicial punishment proceeding or 
civilian administrative action, the preliminary suspension shall be 
vacated.
    (vi) If there is a conviction, nonjudicial punishment, or civil 
suspension or revocation of driving privileges, the suspension shall be 
continued for 1 year from the date of the original preliminary 
suspension. Such action shall be taken only on the basis of an official 
report.
    (3) Suspension for refusal to take a blood alcohol content (BAC) 
test (i) Preliminary suspension of driving privileges is mandatory based 
upon an official report that an individual refused to submit to a 
lawfully requested BAC test.
    (ii) The individual shall be notified of the preliminary suspension 
in writing. The notice shall include the arrest report or other 
documentation and shall inform the individual that a 1-year suspension 
can be imposed after a hearing under paragraph (b)(3)(iv) of this 
section. The notice also shall inform the individual that he or she has 
the right within 5 working days to submit a request for a hearing to 
validate the preliminary suspension and that the suspension will be for 
1 year if a hearing is not requested.
    (iii) If a hearing is not requested within 5 working days, the 
suspension shall be for 1 year.
    (iv) If the individual requests a hearing to vacate the preliminary 
suspension, it shall be held within 10 working days of the request. The 
hearing shall consider the arrest report or other official 
documentation, information presented by the individual, and such other 
information as the hearing officer may deem appropriate. The official 
conducting the hearing shall consider the following issues: (A) Did the 
official have reasonable grounds to believe that the person had been 
operating or was in actual physical control of, a motor vehicle while 
intoxicated? (B) Was the person lawfully cited or apprehended for an 
intoxicated driving offense? (C) Was the individual lawfully requested 
to submit to a BAC test? (D) Did the person refuse to submit to or fail 
to complete a BAC test required by the law of the jurisdiction in which 
the test was requested? If, in view of these issues, the test was 
lawfully requested, the suspension shall be for 1 year, irrespective of 
the ultimate disposition of the underlying intoxicated driving offense. 
If not, the preliminary suspension shall be vacated. Such determinations 
are solely for purposes of acting on the preliminary suspension and are 
without prejudice to the rights of any party in a subsequent criminal or 
administrative proceeding involving the same or a related incident.
    (4) Suspension upon conviction, nonjudicial punishment, or civilian 
administrative action. (i) Suspension of driving privileges for 1 year 
is mandatory when there has been a conviction, nonjudicial punishment, 
or civilian revocation or suspension of driving privileges for 
intoxicated driving, regardless of any prior administrative 
determination under Sec. 62b.4 (b)(2), (b)(3), or (b)(5).
    (ii) Such action shall be taken only on the basis of an official 
report.
    (iii) The individual shall be notified in writing of the suspension 
and shall be notified that an exception may be granted only under 
paragraph (b)(6) of this section.
    (iv) The suspension shall be issued by the installation commander. 
This authority may be delegated only to an official whose primary 
responsibilities are not in the field of law enforcement.
    (5) Repeat offenders. (i) Preliminary increase in suspension of 
driving privileges is mandatory based upon an arrest report or other 
official documentation of an individual's driving in violation of a 
suspension imposed under this part or under similar rules previously 
issued by a DoD Component.
    (A) The individual shall be notified in writing of the preliminary 
increase in suspension. The notice shall include the arrest report or 
other documentation of the violation as well as documentation of the 
original suspension and shall inform the individual that his or her 
original suspension can be increased by 2 years after a hearing under 
paragraph (b)(5)(i)(C) of this section. The notice shall inform the 
individual that he or she has the right within 5 working days to submit 
a request for a hearing to vacate the preliminary increase in suspension 
and

[[Page 304]]

that the original suspension will be increased by 2 years if such a 
request is not submitted.
    (B) If a hearing has not been requested within 5 working days, the 
original suspension shall be increased by 2 years.
    (C) If the individual requests a hearing to vacate the preliminary 
suspension, it shall be held within 10 working days of the request. The 
hearing shall consider the arrest report or other official 
documentation, information presented by the individual, documentation of 
the original suspension, and such other information as the hearing 
officer may deem appropriate. If the official conducting the hearing 
determines that the allegation of driving in violation of a suspension 
is supported by a preponderance of the evidence, the original suspension 
shall be increased by 2 years. If not, the preliminary increase in 
suspension shall be vacated. Such determinations are without prejudice 
to the rights of any party in a subsequent criminal or administrative 
proceeding involving the same or a related incident.
    (D) If in a subsequent judicial, nonjudicial, or administrative 
proceeding, it is determined that the individual did not violate a 
suspension, the preliminary increase in suspensions shall be vacated.
    (ii) For each subsequent determination within a 5-year period that a 
1-year suspension is authorized under paragraph (b) (2) through (4) of 
this section, driving privileges shall be suspended for 2-years. Such 
period shall be in addition to any suspension perviously imposed. 
Military personnel shall be prohibited from obtaining or using a U.S. 
Government Motor Vehicle Operator's Indentification Card, Standard Form 
(SF) 46, for 6 months for each such incident. A determination whether 
DoD civilian personnel should be prohibited from obtaining or using an 
SE 46 shall be made under Federal Personnel Manual chapter 930 and other 
laws and regulations applicable to civilian personnel. Nothing in this 
paragraph precludes an installation commander from imposing a 
prohibition upon obtaining or using an SF 46 for a first offense or for 
such other reasons as may be authorized under applicable laws and 
regulations.
    (6) Exceptions. (i) Exceptions to the mandatory suspension 
provisions in this part may be granted under regulations by the DoD 
Component concerned on a case-by-case basis. Requests for exceptions 
shall be in writing. Such exceptions may be granted only on the basis 
of:
    (A) Mission requirements;
    (B) Unusual personal or family hardship; or
    (C) In the case of a preliminary suspension following lawful 
apprehension, delays exceeding 90 days in the formal disposition of the 
allegations insofar as such delays are not attributable to the 
individual.
    (ii) With respect to a person who has no reasonably available 
alternate means of transportation to officially assigned duties, a 
limited exception shall be granted for the sole purpose of driving 
directly to and from such duties. This does not authorize a person to 
drive on a military installation if the person's driver's license is 
under suspension or revocation by a State, Federal, or host country 
civil court or administrative agency. Maximum reliance shall be placed 
on carpools, public transportation, and reasonably available parking 
facilities adjacent to the installation before such a limited exception 
is granted. Nothing in this provision precludes appropriate or other 
administrative action on the basis of an intoxicated driving incident or 
driving in violation of a previously imposed suspension.
    (iii) Exceptions granted under this paragraph shall be reported in 
writing to the next official in the chain of command.
    (7) Overseas commanders with authority to issue driver's licenses 
shall establish procedures for suspension of such licenses for 
intoxicated driving. Such procedures, insofar as the commanders deem 
practicable, shall be similar to the procedures for suspension of 
installation driving privileges prescribed in paragraph (b) (1) through 
(6) of this section.
    (8) Persons whose installation driving privileges are suspended for 
1 year or more under Sec. 62b.4(b) (2), (3), or (4), above, shall 
complete an alcohol or

[[Page 305]]

drug safety action program or equivalent alcohol education course 
(minimum of 8 hours) before their installation driving privileges may be 
reinstated.
    (c) Screening. Each DoD Component or its supporting agency shall 
establish procedures for screening military personnel charged with 
intoxicated driving offenses within 7 working days of issuance of notice 
of the preliminary suspension to determine whether a member is dependent 
on alcohol or other drugs. The results of this screening shall be made 
available to the command having jurisdiction over the case before 
adjudication. Information concerning personal alcohol and drug abuse 
provided by a member in response to screening questions may not be used 
against the member in a court-martial or on the issue of 
characterization in an administrative separation proceeding. Nothing in 
this provision precludes introduction of such evidence for other 
administrative purposes or for impeachment or rebuttal purposes in any 
proceeding in which evidence of alcohol or drug abuse (or lack thereof) 
first has been introduced by the member, nor does it preclude 
disciplinary or other action based on independently derived evidence. 
DoD civilian personnel charged with intoxicated driving shall be advised 
of the Civilian Employee Assistance Program or Installation Drug and 
Alcohol Program and the availability of evaluation in accordance with 
Federal Personnel Manual Supplement 792-2. Retired members of the 
Military Services shall be advised of the availability of evaluation and 
treatment programs.
    (d) Notification of State Driver's License Agencies. Each DoD 
Component or its supporting agency shall establish a systematic 
procedure in accordance with part 286a of this title to notify State 
driver's license agencies of DoD personnel whose installation driving 
privileges are suspended for 1 year or more following final adjudication 
of the intoxicated driving offense or upon suspension for refusal to 
submit to a lawful BAC test under paragraph (b) of this section. This 
notification shall include the basis for the suspension and the BAC 
level, if known. Exceptions shall be made only when such a suspension 
was increased for an additional 2 years for driving on an installation 
while installation driving privileges were suspended solely on the basis 
of driving in violation of suspension (see paragraph (b)(5) of this 
section). This notification shall be sent to the State in which the 
driver's license was issued and the State in which the installation is 
located. Sample letter format is provided in appendix 1, and State 
driver's license agencies are listed in Appendix 2. DoD Components shall 
establish a system to exchange intoxicated driving and driving privilege 
suspension data when DoD personnel transfer from one location to another 
to ensure that the receiving installation continues any remaining 
portion of the suspension. This information requirement is exempt from 
formal approval and licensing.
    (e) The Military Services shall include the intoxicated driving 
prevention program as an inspection item of special interest for 
Inspector General or administrative inspections.
    (f) The Military Services shall direct installation commanders to 
assess the availability of drug and alcohol in the vicinity of military 
installations through their Armed Forces Disciplinary Control Boards or 
Control Boards of other appropriate Federal agencies. Whenever the 
availability of alcohol or drugs, or both, at an establishment off-base 
presents a threat to the discipline, health, and welfare of DoD 
personnel, such establishments shall be dealt with as prescribed in the 
``Armed Forces Disciplinary Control Board and Off-Installation Military 
Enforcement Guidance'' (Army Regulation No. 190-24, Marine Corps Order 
No. 162.2A, BUPERS Inst. 1620.4A, Air Force Regulation No. 125.11, 
Commandant Instruction No. 1620.13).
    (g) Cases Involving Death or Serious Injury. (1) To the extent 
permitted by law and consistent with the Uniform Code of Military 
Justice (UCMJ) and the ``Manual for Courts-Martial'' and in accordance 
with trial counsel's judgement of appropriate tactical and ethical 
concerns, consideration shall be given to presenting a victim's impact 
statement (oral or written statement

[[Page 306]]

by victims or survivors) before sentencing in cases involving 
intoxicated driving.
    (2) Trial counsel are encouraged to make reasonable efforts to 
ensure that the victim or the victim's family is provided information 
about the progress and disposition of cases processed under the UCMJ.
    (h) DoD Components with field installations shall establish an 
awards and recognition program to recognize successful local 
installation intoxicated driving prevention programs.
    (i) Each DoD Component or its supporting agency is encouraged to 
use, as guidance, ``Report on a National Study of Preliminary Breath 
Test (PBT) and Illegal Per Se Laws'' and ``Interim Report to the Nation 
by the Presidential Commission on Drunk Driving.''



Sec. 62b.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Health Affairs) (ASD(HA)) 
shall:
    (1) Develop a coordinated approach to the reduction of intoxicated 
driving, consistent with this part, recognizing that intoxicated driving 
prevention programs shall be designed to meet local needs.
    (2) Appoint the chair of the DIDPTF.
    (3) Monitor Military Service and DoD Component regulations that 
implement the DoD Intoxicated Driving Prevention Program.
    (4) Act as focal point for the Department of Defense for interagency 
and nongovernmental coordination of national intoxicated driving 
prevention programs.
    (5) Evaluate and report biennially to the Secretary of Defense on 
the effectiveness and efficiency of the DoD Intoxicated Driving 
Prevention Program.
    (b) The Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) (ASD(MRA&L)) shall:
    (1) Ensure the DoD Department Schools system and section VI schools 
include specific material in the curriculum (grades 7 through 12) on the 
effects that alcohol and drugs have on the impairment of driving skills.
    (2) Ensure that intoxicated driving, accident, mishap, and injury 
data include:
    (i) BAC of drivers in three categories--.01-.04, .05-.09, and .10 
and above.
    (ii) Time of day and day of the week the mishap or injury occurred.
    (iii) Type of vehicle (include MOPEDs with motorcycle data).
    (iv) Death and injury data on DoD personnel killed or injured as a 
result of intoxicated driving, include those who were not intoxicated 
themselves but were involved in a mishap as a result of intoxicated 
driving by another party.
    (v) Government property damage cost.
    (vi) Cost of treatment of injured DoD personnel.
    (vii) Pertinent data on military personnel separated or retired as a 
result of injury or other action taken because of:
    (A) Intoxicated driving by the person being separated or retired; or
    (B) Intoxicated driving by another person.
    (viii) Other chemical substances causing intoxicated driving that 
contributed to an accident.
    (3) Provide an annual report to the Secretary of Defense that 
assesses the impact of intoxicated driving on the Department of Defense. 
The report shall include intoxicated driving arrest, apprehension, and 
conviction data as well as the number of exceptions granted to the 
mandatory suspension of driving privileges under paragraph (b)(6) of 
this section.
    (4) Establish procedures (when feasible) under which DoD personnel 
convicted for driving while intoxicated will pay administrative 
restitution to the government for property damage or medical expenses to 
the extent permitted by applicable law.
    (5) Amend appropriate DoD issuances to include the use of a 
preliminary or prearrest breath test (PBT) to be used by law enforcement 
personnel to indicate impairment when the arresting officer has reason 
to believe the operator of a motor vehicle may be intoxicated. (See 
``Report on a National Study of Preliminary Breath Test (PBT) and 
Illegal Per Se Laws'').
    (c) The Head of each DoD Component or its Supporting Agency shall 
establish

[[Page 307]]

and operate intoxicated driving prevention programs prescribed by this 
part.



Sec. 62b.6  DoD intoxicated driving prevention task force.

    (a) Organization and management. (1) The DIDPTF shall be chaired by 
a representative of the Deputy Assistant Secretary of Defense (Health 
Promotion), Office of the ASD(HA).
    (2) The DIDPTF shall consist of representatives of the Military 
Services' drug and alcohol programs and law enforcement communities and 
a representative of the Deputy Assistant Secretary of Defense (Equal 
Opportunity and Safety Policy), Office of the ASD(MRA&L).
    (3) Meetings generally shall be held bimonthly; however, special 
sessions may be required by the chair.
    (b) Functions. The DIDPTF shall:
    (1) Monitor Military Service and DoD Component policy as it applies 
to the prevention of intoxicated driving.
    (2) Review programs and policy developed by other Federal and State 
agencies and make recommendations of suitable adaptation within the 
Department of Defense.
    (3) Make recommendations to the ASD(HA) and the ASD(MRA&L) on 
matters pertaining to intoxicated driving.



Sec. 62b.7  Definitions.

    (a) Blood Alcohol Content (BAC). The percentage, by weight, of 
alcohol in a person's blood as determined by blood, urine, or breath 
analysis. Percent of weight by volume of alcohol in the blood is based 
on grams of alcohol per 100 milliliters of blood.
    (b) Conviction. An official determination or finding as authorized 
by State or Federal law or regulation, including a final conviction by a 
court or court-martial (whether based on a plea of guilty or a finding 
of guilty and regardless of whether the penalty is rebated, deferred, 
suspended, or probated), an unvacated forfeiture of bail or other 
collateral deposited to secure a defendant's appearance in court, a plea 
of nolo contendere accepted by a court, or a payment of a fine.
    (c) DoD issuances. DoD Directives, Instructions, publications and 
changes thereto.
    (d) DoD personnel--(1) Civilian personnel. Employees of the 
Department of Defense whose salary or wages are paid from appropriated 
or nonappropriated funds.
    (2) Military personnel. All U.S. military personnel on active duty, 
U.S. military reserve or National Guard personnel on active duty, and 
Military Service academy cadets.
    (e) Driving privileges. Operation of a privately owned motor vehicle 
on an installation or in areas where traffic operations are under 
military supervision.
    (f) Intoxicated driving. Includes one or more of the following:
    (1) Operating a motor vehicle under any intoxication caused by 
alcohol or drugs in violation of Article 111 of the UCMJ (see paragraphs 
190 and 191 of the ``Manual for Courts-Martial'' or a similar law of the 
jurisdiction in which the vehicle is being operated.
    (2) Operating a motor vehicle with a BAC of .10 or higher on a 
military installation or in an area where traffic operations are under 
military supervision.
    (3) Operating a motor vehicle with a BAC of .10 or higher in 
violation of the law of the jurisdiction in which the vehicle is being 
operated.
    (4) Operating a motor vehicle with a BAC of .05 but less than .10 in 
violation of the law of the jurisdiction in which the vehicle is being 
operated if the jurisdiction imposes a suspension or revocation solely 
on the basis of the BAC level.
    (g) Supporting agency. The agency that accepts the responsibility 
and performs the actions necessary to accomplish any of the requirements 
of this part (for example, one of the Military Services supporting a 
Defense Agency through installation vehicle registration, screening of 
intoxicated drivers, or supervisor education).

  Appendix 1 to Part 62b--Driver's License Information (Sample Letter)

FROM:
 _______________________________________________________________________
________________________________________________________________________
________________________________________________________________________
TO: Department of Vehicle Registration Licenses
 _______________________________________________________________________
________________________________________________________________________

[[Page 308]]

 _______________________________________________________________________
SUBJECT: Notification of Person Convicted of an Intoxicated Driving 
          Offense.
    This letter is your notification that on
 _______________________________________________________________________
(date)
 _______________________________________________________________________
(last name, first name, middle initial
 _______________________________________________________________________
and social security number of person)
a member of
 _______________________________________________________________________
(branch of Military Service or DoD Component)
 _______________________________________________________________________
(and unit)
 _______________________________________________________________________
(installation location)
was found guilty of (intoxicated driving or refusal to take a blood 
alcohol content (BAC) test in a court-martial, non-judicial proceeding 
under Article 15 of the UCMJ, or civil court). (If civil court, give 
court name and case number.) (He or she ) holds a __________ (State) 
driver's license, number __________, issued __________, expiring on 
__________. (He or she) was arrested
 _______________________________________________________________________
(date and base location)
by __________ (State) (or military) police while driving vehicle license 
number __________. A BAC test (was or was not) taken (with a reading of 
__________). Based on the above information, this individual's 
installation driving privileges have been suspended for ____ (insert 
number of years). The individual's current address is:
 _______________________________________________________________________
________________________________________________________________________
________________________________________________________________________

         Appendix 2 to Part 62b--State Driver's License Agencies

                                 Alabama

Data Processing Unit, Driver's Licensing Division, Department of Public 
Safety, Montgomery, Alabama 36192, (205) 832-5100

                                 Alaska

MVR Desk, Motor Vehicles, Pouch N, Juneau, Alaska 99811, (907) 465-4361

                                 Arizona

Phoenix City Magistrates Court (No street number required), Phoenix, 
Arizona 85001, (602) 262-4001

                                Arkansas

Driver's Control, P.O. Box 1272, Little Rock, Arkansas 72203, (501) 371-
1631

                               California

Information Services, Department of Motor Vehicles, P.O. Box 11231, 
Sacramento, California 95813

                                Colorado

Motor Vehicle Division, Master File Section 44-489, 140 W. 6th Avenue, 
Denver, Colorado 80204, (303) 866-3751

                               Connecticut

Assistant Division Chief, 60 State Street, Wethersfield, Connecticut 
06109, (203) 566-3230

                                Delaware

Senior Clerk, Revocation Section, P.O. Box 698, Dover, Delaware 19901, 
(302) 736-4427

                                 Florida

Division of Drivers Licenses & Motor Vehicles, Department of Highway 
Safety, Kirkman Building, Tallahassee, Florida 32301, (904) 488-2117

                                 Georgia

Drivers Support Division, Department of Public Safety, P.O. Box 1456, 
Atlanta, Georgia 30371-2303, (404) 656-5704

                                 Hawaii

Administrator, District Court, 1111 Alakea Street, Honolulu, Hawaii 
96813, (808) 548-2467

                                  Idaho

Idaho Transportation Department, Driver Services, P.O. Box 34, Boise, 
Idaho 83731, (208) 334-2534

                                Illinois

Abstract Informational Unit, Motor Vehicle Services, 2701 S. Dirksen 
Parkway, Springfield, Illinois 62703, (217) 782-2720

                                 Indiana

Bureau of Motor Vehicles, Paid Mail Division, State Office Building, 
room 416, Indianapolis, Indiana 46204, (317) 232-2894

                                  Iowa

Chief Teletype Operator, Lucas State Office Building, Des Moines, Iowa 
50319, (515) 281-5559

                                 Kansas

Chief, Driver Control Bureau, State Office Building, Topeka, Kansas 
66626, (913) 296-3671

                                Kentucky

Division of Driver Licensing, Justice Cabinet, room 220, State Office 
Building, Frankfort, Kentucky 40601, (502) 564-6800

[[Page 309]]

                                Louisiana

Department of Public Safety, Office of Motor Vehicles, P.O. Box 64886, 
Baton Rouge, Louisiana 70896

                                  Maine

Driver Record Section, Motor Vehicle Division, Statehouse Station 29, 
Augusta, Maine 04333, (207) 289-2733

                                Maryland

Director, Driver Records, 6601 Ritchie Highway, NE, Glen Burnie, 
Maryland 21062, (301) 768-7225

                              Massachusetts

Registry Motor Vehicles, 100 Nashua Street, Boston, Massachusetts 02114

                                Michigan

Commercial Lookup Unit, Michigan Department of State, Bureau of Driver & 
Vehicle Services, Lansing, Michigan 48918

                                Minnesota

Driver License Division, 108 Transportation Building, St. Paul, 
Minnesota 55155, (612) 296-2023

                               Mississippi

Mississippi Highway Patrol, MVR Section, P.O. Box 958, Jackson, 
Mississippi 39205, (601) 982-1212, Ext. 268

                                Missouri

Division of Motor Vehicles & Driver Licensing, P.O. Box 629, Jefferson 
City, Missouri 65105, (No telephone inquiries)

                                 Montana

Office Manager, Driver Services, 303 North Roberts, Helena, Montana 
59620, (406) 449-3000

                                Nebraska

Administrator, P.O. Box 94789, Lincoln, Nebraska 68509, (402) 471-3888

                                 Nevada

Driver Record Section, 555 Wright Way, Carson City, Nevada 89701, (702) 
885-5505

                              New Hampshire

Department of Public Safety, Division of Motor Vehicles, Hazen Drive, 
Concord, New Hampshire 03105, (603) 271-2486

                               New Jersey

Supervisor, Abstract Section, Dept. of Motor Vehicles, 137 E. State 
Street, Trenton, New Jersey 08625, (609) 292-4558

                               New Mexico

Chief, Motor Transportation Department, Manuel Lujan Building, Santa Fe, 
New Mexico 87503, (505) 827-2362

                                New York

New York State Dept. of Motor Vehicles, Public Service Bureau, Empire 
State Plaza, Albany, New York 12228, (518) 474-0705

                             North Carolina

Director, Driver License Section, Division of Motor Vehicles, 1100 New 
Bern Avenue, Raleigh, North Carolina 27697, (919) 733-9906

                              North Dakota

Driving Records, Drivers License Division, 600 E. Boulevard, Bismarck, 
North Dakota 58505, (701) 224-2603

                                  Ohio

Bureau of Motor Vehicles, Attn.: MVOSPA, P.O. Box 16520, Columbus, Ohio 
43216

                                Oklahoma

Oklahoma Department of Public Safety, Driver Improvement Division, Box 
11415, Oklahoma City, Oklahoma 73136, (405) 427-6541

                                 Oregon

Supervisor, Files and Correspondence DMV, 1905 Lana Avenue, NE, Salem, 
Oregon 97314, (503) 371-2225

                              Pennsylvania

Division Manager, Citation Processing Division, room 302, Bureau of 
Traffic Safety Operations, Department of Transportation, Harrisburg, 
Pennsylvania 17120

                              Rhode Island

Department of Motor Vehicles, State Office Building, Providence, Rhode 
Island 02903, (401) 277-2994

                             South Carolina

Motor Vehicle Administrator, P.O. Box 1498, Columbia, South Carolina 
29216, (803) 758-8428

                              South Dakota

Driver Improvement Program, 118 W. Capitol, Pierre, South Dakota 57501-
2080, (605) 773-4128

                                Tennessee

Financial Responsibility Section, P.O. Box 945, Nashville, Tennessee 
37202, (615) 741-3954

[[Page 310]]

                                  Texas

Director, Motor Vehicle Division, 40th and Jackson Avenue, Austin, Texas 
78779, (512) 465-7611

                                  Utah

Chief, Drivers License Bureau, 317 State Office Building, Salt Lake 
City, Utah 84114, (801) 965-4411

                                 Vermont

Director of Law Administration, Department of Motor Vehicles, 120 State 
Street, Montpelier, Vermont 05603, (Mail inquiries only)

                                Virginia

Division of Motor Vehicles, Attn: Driver's Licensing and Information 
Department, 2300 W. Broad Street, Richmond, Virginia 23269, (804) 257-
0410

                               Washington

Department of Licensing, Driver Services Division, Highway Licensing 
Building, Olympia, Washington 98504, (206) 753-6976

                              West Virginia

Department of Motor Vehicles, 1800 Washington Street, East, Charleston, 
West Virginia 25317, (304) 348-0238

                                Wisconsin

Driver Record File, Department of Transportation, P.O. Box 7918, 
Madison, Wisconsin 53707-7918, (608) 266-2360

                                 Wyoming

Criminal Identification Division, Boyd Building, Cheyenne, Wyoming 82002

                                   NDR

National Driver Register, room 5117, NHTSA, 400 7th Street SW, 
Washington, DC 20509

                          District of Columbia

District of Columbia Department of Transportation, Bureau of Motor 
Vehicles Services, 301 C Street NW, Washington, DC 20001

                                  Guam

Mr. Patrick Wolfe, Deputy Director, Revenue and Taxation, Government of 
Guam, Agana, Guam 96910

                               Puerto Rico

Mr. Jose A. Zayas-Berdecia, Director, Bureau of Motor Vehicles, P.O. Box 
41243, Santurce, Puerto Rico 00940

                             Virgin Islands

(Does not participate in the National Driver Register)



PART 63--FORMER SPOUSE PAYMENTS FROM RETIRED PAY--Table of Contents




Sec.
63.1  Purpose.
63.2  Applicability and scope.
63.3  Definitions.
63.4  Policy.
63.5  Responsibilities.
63.6  Procedures.

    Authority: 10 U.S.C. 1408.

    Source: 50 FR 2667, Jan. 18, 1985, unless otherwise noted.



Sec. 63.1  Purpose.

    Under 10 U.S.C. 1408, this part establishes policy and authorizes 
direct payments to a former spouse of a member from retired pay in 
response to court-ordered alimony, child support, or division of 
property.



Sec. 63.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense, the 
Military Departments, the Coast Guard (under agreement with the 
Department of Transportation), the Public Health Service (PHS) (under 
agreement with the Department of Health and Human Services); and the 
National Oceanic and Atmospheric Administration (NOAA) (under agreement 
with the Department of Commerce). The term ``Uniformed Services,'' as 
used herein, refers to the Army, Navy, Air Force, Marine Corps, Coast 
Guard, commissioned corps of the PHS, and the commissioned corps of the 
NOAA.
    (b) This part covers members retired from the active and reserve 
components of the Uniformed Services who are subject to court orders 
awarding alimony, child support, or division of property.



Sec. 63.3  Definitions.

    (a) Alimony. Periodic payments for the support and maintenance of a 
spouse or former spouse in accordance with State law under 42 U.S.C. 
662(c). It includes, but is not limited to, spousal support, separate 
maintenance, and maintenance. Alimony does not include any payment for 
the division of property.
    (b) Annuitant. A person receiving a monthly payment under a survivor 
benefit plan related to retired pay.

[[Page 311]]

    (c) Child support. Periodic payments for the support and maintenance 
of a child or children, subject to and in accordance with State law 
under 42 U.S.C. 662(b). It includes, but is not limited to, payments to 
provide for health care, education, recreation, and clothing or to meet 
other specific needs of such a child or children.
    (d) Court. Any court of competent jurisdiction of any State, the 
District of Columbia, the Commonwealth of Puerto Rico, Guam, American 
Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust 
Territory of the Pacific Islands and any court of the United States as 
defined in 28 U.S.C. 451 having competent jurisdiction; or any court of 
competent jurisdiction of a foreign country with which the United States 
has an agreement requiring the United States to honor any court order of 
such country.
    (e) Court Order. As defined under 10 U.S.C. 1408(a)(2), a final 
decree of divorce, dissolution, annulment, or legal separation issued by 
a court, or a court ordered, ratified, or approved property settlement 
incident to such a decree. It includes a final decree modifying the 
terms of a previously issued decree of divorce, dissolution, annulment, 
or legal separation, or a court ordered, ratified, or approved property 
settlement incident to such previously issued decree. The court order 
must provide for the payment to a member's former spouse of alimony, 
child support, or a division of property. In the case of a division of 
property, the court order must specify that the payment is to be made 
from the member's disposable retired pay.
    (f) Creditable service. Service counted towards the establishment of 
any entitlement for retired pay. See paragraphs 10102 through 10108 of 
DoD 1340.12-M, 42 U.S.C. 212 for the PHS, and 33 U.S.C. 864 and 10 
U.S.C. 6323 for NOAA.
    (g) Designated agent. A representative of a Uniformed Service who 
will receive and process court orders under this part.
    (h) Division of property. Any transfer of property or its value by 
an individual to his or her former spouse in compliance with any 
community property settlement, equitable distribution of property, or 
other distribution of property between spouses or former spouses.
    (i) Entitlement. The legal right of a member to receive retired pay.
    (j) Final decree. As defined under 10 U.S.C. 1408(a)(3), a decree 
from which no appeal may be taken or from which no appeal has been taken 
within the time allowed for taking such appeals under the laws 
applicable to such appeals or a decree from which timely appeal has been 
taken and such appeal has been finally decided under the laws applicable 
to such appeals.
    (k) Former spouse. The former husband or former wife, or the husband 
or wife, of a member.
    (l) Garnishment. The legal procedure through which payment is made 
from an individual's pay that is due or payable to another party in 
order to satisfy a legal obligation to provide child support, to make 
alimony payments, or both, under 5 CFR part 581 and 42 U.S.C. 659 or to 
enforce a division of property other than a division of retired pay as 
property under 10 U.S.C. 1408(d)(5).
    (m) Member. A person originally appointed or enlisted in, or 
conscripted into, a Uniformed Service who has retired from the regular 
or reserve component of the Uniformed Service concerned.
    (n) Renounced pay. Retired pay to which a member has an entitlement, 
but for which receipt of payment has been waived by the member.
    (o) Retired pay. The gross entitlement due a member based on 
conditions of the retirement law, pay grade, years of service for basic 
pay, years of service for percentage multiplier, if applicable, and date 
of retirement (transfer to the Fleet Reserve or Fleet Marine Corps 
Reserve); also known as retainer pay.
[50 FR 2667, Jan. 18, 1985, as amended at 52 FR 25215, July 6, 1987]



Sec. 63.4  Policy.

    It is the policy of the Uniformed Services to honor a former 
spouse's request for direct payment from a given member's retired pay in 
enforcement of a court order that provides for a alimony, child support, 
or division of property, when the terms, conditions, and requirements in 
this part are satisfied.

[[Page 312]]



Sec. 63.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Comptroller) shall establish 
policy and procedures, provide guidance, coordinate changes with the 
Uniformed Services, and monitor the implementation of this part within 
the Department of Defense.
    (b) The Secretaries of the Military Departments and Heads of the 
other Uniformed Services shall implement this part.



Sec. 63.6  Procedures.

    (a) Eligibility of former spouse. (1) A former spouse of a member is 
eligible to receive direct payment from the retired pay of that member 
only pursuant to a court order that satisfies the requirements and 
conditions specified in this part. In the case of a division of 
property, the court order must specifically provide that payment is to 
be made from disposable retired pay.
    (2) For establishing eligibility for direct payment under a court 
order that provides for a division of retired pay as property, a former 
spouse must have been married to the member for 10 years or more, during 
which the member performed 10 years or more of creditable service. There 
is no 10-year marriage requirement for payment of child support, 
alimony, or both.
    (b) Application by former spouse. (1) A former spouse shall deliver 
to the designated agent of the member's Uniformed Service a signed DD 
Form 2293, Request for Former Spouse Payments from Retired Pay, or a 
signed statement that includes:
    (i) Notice to make direct payment to the former spouse from the 
member's retired pay.
    (ii) A copy of the court order and other accompanying documents 
certified by an official of the issuing court that provides for payment 
of child support, alimony, or division of property.
    (iii) A statement that the court order has not been amended, 
superseded, or set aside.
    (iv) Sufficient identifying information about the member to enable 
processing of the application. The identification should give the 
member's full name, social security number, and Uniformed Service.
    (v) The full name, address, and social security number of the former 
spouse.
    (vi) Before payment, the former spouse shall agree personally that 
any future overpayments are recoverable and subject to involuntary 
collection from the former spouse or his or her estate.
    (vii) As a condition precedent to payment, the former spouse shall 
agree personally to notify the designated agent promptly if the 
operative court order upon which payment is based is vacated, modified, 
or set aside. This shall include notice of the former spouse's 
remarriage if all or a part of the payment is for alimony or notice of a 
change in eligibility for child support payments under circumstances of 
the death, emancipation, adoption, or attainment of majority of a child 
whose support is provided through direct payment to a former spouse from 
retired pay.
    (2) If the court order is for a division of retired pay as property 
and it does not state that the former spouse satisfied the eligibility 
criteria found in paragraph (a)(2) of this section, the former spouse 
shall furnish sufficient evidence for the designated agent to verify 
that the requirement was met.
    (3) The notification of the designated agent shall be accomplished 
by certified or registered mail, return receipt requested, or by 
personal service. Effective service is not accomplished until a complete 
application providing all information required by this part is received 
in the office of the designated agent, who shall note the date and time 
of receipt on the notification document.
    (4) Not later than 90 days after effective service, the designated 
agent shall respond to the former spouse as follows: (i) If the court 
order will be honored, the former spouse shall be informed of the date 
that payments tentatively begin; the amount of each payment; the amount 
of gross retired pay, total deductions, and disposable retired pay 
(except in cases where full payment of a court-ordered fixed amount will 
be made); and other relevant information if applicable: or (ii) If the 
court order will not be honored, the designated agent shall explain in 
writing

[[Page 313]]

to the former spouse why the court order was not honored.
    (5) The designated agent for each Uniformed Service is:
    (i) Army: Commander, Army Finance and Accounting Center, Attn: 
FINCL-G, Indianapolis, IN 46249-0160, (317) 542-2155.
    (ii) Navy: Director, Navy Family Allowance Activity, Anthony J. 
Celebrezze Federal Building, Cleveland, OH 44199-2087, (216) 522-5301.
    (iii) Air Force: Commander, Air Force Accounting and Finance Center, 
ATTN: JAL, Denver, CO 80279-5000, (303) 370-7524.
    (iv) Marine Corps: Commanding Officer, Marine Corps Finance Center 
(Code AA), Kansas City, MO 64197-0001, (816) 926-7103.
    (v) U.S. Coast Guard, Commanding Officer (L), Pay and Personnel 
Center, 444 Quincy Street, Topeka, Kansas 66683-3591; (913) 295-2516.
    (vi) Office of General Counsel, Department of Health and Human 
Services, room 5362, 330 Independence Avenue SW., Washington, DC 20201, 
(202) 475-0153.
    (vii) U.S. Coast Guard, Commanding Officer (L), Pay and Personnel 
Center, 444 Quincy Street, Topeka, Kansas 66683-3591; (913) 295-2516.
    (6) U.S. Attorneys are not designated agents authorized to receive 
court orders or garnishments under this part.
    (c) Review of Court Orders. (1) The court order must be regular on 
its face, meaning that it is issued by a court of competent jurisdiction 
in accordance with the laws of the jurisdiction.
    (2) The court order must be legal in form and must include nothing 
on its face that provides reasonable notice that it is issued without 
authority of law. It is required that the court order be authenticated 
or certified within 90 days immediately preceding its service on the 
designated agent.
    (3) The court order must be a final decree.
    (4) If the court order was issued while the member was on active 
duty and the member was not represented in court, the court order or 
other court documents must certify that the rights of the member under 
the ``Soldiers' and Sailors' Civil Relief Act of 1940'' (50 U.S.C. 
Appendix 501-591) were complied with.
    (5) Sufficient information must be contained in the court order to 
identify the member.
    (6) For court orders that provide for the division of retired pay as 
property, the following conditions apply:
    (i) The court must have jurisdiction over the member by reason of 
(A) the member's residence, other than because of military assignment in 
the territorial jurisdiction of the court; (B) the member's domicle in 
the territorial jurisdiction of the court; or (C) the member's consent 
to the jurisdiction of the court.
    (ii) The treatment of retired pay as property solely of the member 
or as property of the member and the former spouse of that member must 
be in accordance with the law of the jurisdiction of such court.
    (iii) The court order or other accompanying documents served with 
the court order must show the former spouse was married to the member 10 
years or more, during which the member performed at least 10 years of 
creditable service.
    (7) Court orders awarding a division of retired pay as property that 
were issued before June 26, 1981, shall be honored if they otherwise 
satisfy the requirements and conditions specified in this part. A 
modification on or after June 26, 1981, of a court order that originally 
awarded a division of retired pay as property before June 26, 1981, may 
be honored for subsequent court-ordered changes made for clarification, 
such as the interpretation of a computation formula in the original 
court order. For court orders issued before June 26, 1981, subsequent 
amendments after that date to provide for a division of retired pay as 
property are unenforceable under this part. If the court order awarding 
a division of retired pay as property is issued on or after June 26, 
1981, subsequent modifications of that court order shall be honored if 
they otherwise satisfy the requirements and conditions specified in this 
part.
    (8) In the case of a division of property, the court order must 
provide specifically for payment of a fixed amount expressed in U.S. 
dollars or payment as

[[Page 314]]

a percentage or fraction of disposable retired pay. Court orders 
specifying a percentage or fraction of retired pay shall be construed as 
a percentage or fraction of disposable retired pay. A court order that 
provides for a division of retired pay by means of a formula wherein the 
elements of the formula are not specifically set forth or readily 
apparent on the face of the court order will not be honored unless 
clarified by the court.
    (d) Garnishment Orders. (1) If a court order provides for the 
division of property other than retired pay in addition to an amount of 
disposable retired pay to be paid to the member's former spouse, the 
former spouse may garnish that member's retired pay in order to enforce 
the division of property. The limitations of 15 U.S.C. 1673(a) and the 
limitations of Sec. 63.6(e) of this part apply in determining the amount 
payable to a former spouse.
    (2) The designated agents authorized to receive service of process 
of garnishment orders under this part shall be those listed in 
Sec. 63.6(b)(5) of this part.
    (3) Garnishment orders under this part for enforcement of a division 
of property other than retired pay shall be processed in accordance with 
5 CFR part 581 to the extent that the procedures are consistent with 
this part.
    (e) Limitations. (1) Upon proper service, a member's retired pay may 
be paid directly to a former spouse in the amount necessary to comply 
with the court order, provided the total amount paid does not exceed:
    (i) 50 percent of the disposable retired pay for all court orders 
and garnishment actions paid under this part.
    (ii) 65 percent of the disposable retired pay for all court orders 
and garnishments paid under this part and garnishments under 42 U.S.C. 
659.
    (2) Disposable retired pay is the gross pay entitlement, including 
renounced pay, less authorized deductions. Disposable retired pay does 
not include annuitant payments under 10 U.S.C. chapter 73. For court 
orders issued on or before November 14, 1986 (or amendments thereto), 
disposable retired does not include retired pay of a member retired for 
disability under 10 U.S.C. chapter 61. The authorized deductions are:
    (i) Amounts owed to the United States.
    (ii) Fines and forfeitures ordered by a court-martial.
    (iii) Amounts waived in order to receive compensation under title 5 
or 38 of the U.S. Code.
    (iv) Federal employment taxes and income taxes withheld to the 
extent that the amount deducted is consistent with the member's tax 
liability, including amounts for supplemental withholding under 26 
U.S.C. 3402(i), when the member presents evidence to the satisfaction of 
the designated agent that supports such withholding. State employment 
taxes and income taxes when the member makes a voluntary request for 
such withholding from retired pay and the Uniformed Services have 
entered into an agreement with the State concerned for withholding from 
retired pay.
    (v) Premiums paid as a result of a election under 10 U.S.C. chapter 
73 to provide an annuity to a spouse or former spouse to whom payment of 
a portion of such member's retired pay is being made pursuant to a court 
order under this part.
    (vi) The amount of retired pay of the member under 10 U.S.C. chapter 
61 computed using the percentage of the member's disability on the date, 
when the member was retired (or the date on which the member's name was 
placed on the temporary disability retirement list), for court orders 
issued after November 14, 1986.
    (vii) Other amounts required by law to be deducted.
    (f) Notification of Member. (1) As soon as possible, but not later 
than 30 calendar days after effective service of a court order or 
garnishment action under this part, the designated agent shall send 
written notice to the affected member at his or her last known address.
    (2) This notice shall include:
    (i) A copy of the court order and accompanying documentation.
    (ii) An explanation of the limitations placed on the direct payment 
to a former spouse from a member's retired pay.
    (iii) A request that the member submit notification to the 
designated agent if the court order has been

[[Page 315]]

amended, superseded, or set aside. The member is obligated to provide an 
authenticated or certified copy of the operative court documents when 
there are conflicting court orders.
    (iv) The amount or percentage that will be deducted if the member 
fails to respond to the notification as prescribed by this part.
    (v) The effective date that direct payments to the former spouse 
tentatively will begin.
    (vi) Notice that the member's failure to respond within 30 days from 
the date that the notice is mailed may result in the payment of retired 
pay as provided in the notification.
    (vii) That if the member submits information in response to this 
notification, the member thereby consents to the disclosure of such 
information to the former spouse or the former spouse's agent.
    (3) If the member responds to the notification, the designated agent 
shall consider the response and will not honor the court order whenever 
it is shown that the court order is defective, or the court order is 
modified, superseded, or set aside.
    (g) Designated agent liability. (1) The United States and any 
officer or employee of the United States will not be liable with respect 
to any payment made from retired pay to any member or former spouse 
pursuant to a court order that is regular on its face if such payment is 
made in accordance with this part.
    (2) An officer or employee of the United States, who under this part 
has the duty to respond to interrogatories, will not be subject under 
any law to any disciplinary action or civil or criminal liability or 
penalty for, or because of, any disclosure of information made by him or 
her in carrying out any of the duties that directly or indirectly 
pertain to answering such interrogatories.
    (3) If a court order on its face appears to conform to the laws of 
the jurisdiction from which it was issued, the designated agent will not 
be required to ascertain whether the court has obtained personal 
jurisdiction over the member.
    (4) Whenever a designated agent is effectively served with 
interrogatories concerning implementation of this part, the designated 
agent shall respond to such interrogatories within 30 calendar days of 
receipt or within such longer period as may be prescribed by applicable 
State law.
    (h) Payments. (1) Subject to a member's eligibility for retired pay, 
effective service of a court order, and the limitations and requirements 
of this part, the Uniformed Service concerned shall begin payments to 
the former spouse not later than 90 days after the date of effective 
service.
    (2) Payments shall conform with the normal pay and disbursement 
cycle for retired pay. Payments may be expressed as fixed in amount or 
as a percentage or fraction of disposable retired pay. With regard to 
payments based on a percentage or fraction of disposable retired pay, 
the amount will change in direct proportion and at the effective date of 
future cost-of-living adjustments that are authorized, unless the court 
order directs otherwise.
    (3) Payments terminate on the date of the death of the member, death 
of the former spouse, or as stated in the applicable court order, 
whichever occurs first. Payments shall be terminated or shall be reduced 
upon the occurrence of a condition that requires termination or 
reduction under applicable State law.
    (4) When several court orders are served with regard to a member's 
retired pay, payment shall be satisfied on a first-come, first-served 
basis within the amount limitations prescribed in paragraph (e) of this 
section.
    (5) If conflicting court orders are served on the designated agent 
that direct that different amounts be paid during a month to the same 
former spouse from a given member's retired pay, the designated agent 
shall authorize payment on the court order directing payment of the 
least amount. The difference in amounts on conflicting court orders 
shall be retained by the designated agent pending resolution by the 
court that has jurisdiction or by agreement of the parties. The amount 
retained shall be paid as provided in a subsequent court order or 
agreement. The total of all payments plus all moneys retained under this 
paragraph shall

[[Page 316]]

be within the limitation prescribed in paragraph (e) of this section.
    (6) The designated agent shall comply with a stay of execution 
issued by a court of competent jurisdiction and shall suspend payment of 
disputed amounts pending resolution of the issue.
    (7) When service is made and the identified member is found not to 
be currently entitled to payments the designated agent shall advise the 
former spouse that no payments are due from or payable by the Uniformed 
Service to the named individual. If the member is on active duty when 
service is accomplished, the designated agent shall retain the 
application until the member's retirement. In such case, payments to the 
former spouse, if otherwise proper, shall begin not later than 90 days 
from the date the member first becomes entitled to receive retired pay. 
If the member becomes entitled to receive retired pay more than 90 days 
after first being notified under paragraph (f) of this section, the 
notification procedures prescribed by that section shall be repeated by 
the designated agent.
    (8) In moneys are only temporarily exhausted or otherwise 
unavailable, the former spouse shall be fully advised of the reason or 
reasons why and for how long the moneys will be unavailable. Service 
shall be retained by the designated agent and payments to the former 
spouse, if otherwise proper, shall begin not later than 90 days from the 
date the member becomes entitled to receive retired pay. If the member 
becomes entitled to receive retired pay more than 90 days after first 
being notified under paragraph (f) of this section, the notification 
procedures prescribed by that section shall be repeated by the 
designated agent.
    (9) The order of precedence for disbursement of retired pay when the 
gross amount is not sufficient to permit all authorized deductions and 
collections shall follow volume I, part 3, section 7040, ``Order of 
Payment,'' in the Treasury Fiscal Requirements Manual for Guidance of 
Departments and Agencies. Court-ordered payments to a former spouse from 
retired pay shall be enforced over voluntary deductions and allotments.
    (10) Payments made shall be prospective in terms of the amount 
stated in the court order. Arrearages will not be considered in 
determining the amount payable from retired pay.
    (11) No right, title, or interest that can be sold, assigned, 
transferred, or otherwise disposed of, including by inheritance, is 
created under this part.
    (12) At the request of the designated agent, the former spouse may 
be required to provide a certification of eligibility that attests in 
writing to the former spouse's continued eligibility and that includes a 
notice of change in status or circumstances that affect eligibility. 
After notice to the former spouse, payments to the former spouse may be 
suspended, or terminated, when the former spouse fails to comply, or 
refuses to comply, with the certification requirement.
    (i) Reconsideration. A former spouse or member may request that the 
designated agent reconsider the designated agent's determination in 
response to service of an application for payments under this part or 
the member's answer to the designated agent with respect to notice of 
such service. For reconsideration, the request must express the issues 
the former spouse or the member believes were incorrectly resolved by 
the designated agent. The designated agent shall respond to the request 
for reconsideration, giving an explanation of the determination reached.

(Approved by the Office of Management and Budget under control numbers 
0704-0160 and 0704-0182)

[50 FR 2667, Jan. 18, 1985, as amended at 52 FR 25215, July 6, 1987]



PART 64--MANAGEMENT AND MOBILIZATION OF REGULAR AND RESERVE RETIRED MILITARY MEMBERS--Table of Contents




Sec.
64.1  Purpose.
64.2  Applicability and scope.
64.3  Definitions.
64.4  Policy.
64.5  Responsibilities.
64.6  Procedures.

Appendix A to Part 64--Letter Format to Cognizant Service Personnel 
          Center

[[Page 317]]

          Requesting Employee be Screened from Retiree-Recall Program
Appendix B to Part 64--List of Reserve Personnel Centers to which 
          Retiree-Recall Screening Determination Shall be Forwarded

    Authority: 10 U.S.C. 672(a), 675, 688, and 973.

    Source: 55 FR 9319, Mar. 13, 1990, unless otherwise noted.



Sec. 64.1  Purpose.

    This part implements sections 672(a), 675, 688, and 973 of title 10, 
United States Code, by prescribing uniform policy and procedures 
governing the peacetime management of retired military personnel, both 
Regular and Reserve, in preparation for their use during a mobilization.



Sec. 64.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense (OSD); the 
Military Departments (including their National Guard and Reserve 
components); the Chairman, Joint Chiefs of Staff (Joint Staff); the 
Coast Guard and its Reserve component (by agreement with the Department 
of Transportation (DoT)); and the Defense Agencies (hereafter referred 
to collectively as ``DoD Components''). The term ``Military Services,'' 
as used herein, refers to the Army, Navy, Air Force, Marine Corps, and 
Coast Guard (by agreement with the DoT).
    (b) By agreement with non-DoD organizations that have DoD-related 
missions, includes organizations with Defense-related missions, such as 
the Federal Emergency Management Agency (FEMA), the Selective Service 
System (SSS), and the organizations with North Atlantic Treaty 
Organization (NATO)-related missions.



Sec. 64.3  Definitions.

    (a) Key employee. Any Reservist, or any military retiree (Regular or 
Reserve) identified by his or her employer, private or public, as 
filling a key position.
    (b) Key position. A civilian position, public or private (designated 
by the employers and approved by the Secretary concerned), that cannot 
be vacated during war or national emergency.
    (c) Military retiree categories--(1) Category I. Nondisability 
military retirees under age 60 who have been retired less than 5 years.
    (2) Category II. Nondisability military retirees under age 60 who 
have retired 5 years or more.
    (3) Category III. Military retirees, including those retired for 
disability, other than categories I or II retirees (includes warrant 
officers and health-care professionals who retire from active duty after 
age 60).
    (d) Military retirees or retired military members. (1) Regular and 
Reserve officers and enlisted members who retire from the Military 
Services under 10 U.S.C. chapters 61, 63, 65, 67, 367, 571, 573, or 867 
and 14 U.S.C. chapters 11 and 21.
    (2) Reserve officers and enlisted members eligible for retirement 
under one of the provisions of law in definition (d)(1) who have not 
reached age 60 and who have not elected discharge or are not members of 
the Ready Reserve or Standby Reserve (including members of the Inactive 
Standby Reserve).
    (3) Members of the Fleet Reserve and Fleet Marine Corps Reserve 
under 10 U.S.C. 6330.



Sec. 64.4  Policy.

    It is DoD policy that military retirees shall be ordered to active 
duty (as needed) to fill personnel shortfalls due to mobilization or 
other emergencies, as described in 10 U.S.C. 672 and 688. DoD Components 
and the Coast Guard shall plan to use as many retirees, as necessary, to 
meet national security needs. Military retirees may be used as follows:
    (a) To fill shortages in, or to augment, deployed or deploying 
units.
    (b) To fill shortages in, or to augment, supporting units and 
activities in the Continental United States (CONUS), Alaska, and Hawaii.
    (c) To release other military members for deployment overseas.
    (d) Subject to the limitations of 10 U.S.C. 973, to fill Federal 
civilian workforce shortages within the Department of Defense, the Coast 
Guard, or other Government entities.

[[Page 318]]

    (e) To meet national security needs in organizations outside the 
Department of Defense with Defense-related missions.



Sec. 64.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Reserve Affairs) (ASD(RA)) 
and the Assistant Secretary of Defense (Force Management and Personnel) 
(ASD(FM&P)) shall provide overall policy guidance for the management and 
mobilization of DoD military retirees. In addition, the Assistant 
Secretary of Defense (Force Management and Personnel) (ASD(FM&P)) shall:
    (1) Validate positions identified by Defense and non-Defense 
Agencies as suitable for fill by military retirees.
    (2) Establish priorities for fill once all requirements are 
identified.
    (3) Provide redistribution guidance.
    (b) The Secretaries of the Military Departments and the Commandant 
of the Coast Guard shall ensure that plans for the management and 
mobilization of military retirees are consistent with this part.
    (c) The Directors of the Defense Agencies, the Director of the 
Federal Emergency Management Agency (FEMA) and the Director of the 
Selective Service System (SSS) and other Federal Organizations, as 
appropriate, shall, by agreement, assist in identifying military and 
Federal civilian wartime positions that are suitable for fill by 
military retirees, and provide a list of requirements to the Office of 
the Assistant Secretary of Defense (Force Management and Personnel) 
(OASD(FM&P)) for validation and prioritization before fill by the 
Military Services. The Services retain the right to disapprove the 
request if no military retiree is available. At least annually, the 
requesting Agency shall verify to the OASD(FM&P) the accuracy of their 
validated requirements and identify any new requirements.
    (d) The Secretaries of the Military Departments, or designees, 
shall:
    (1) Prepare plans and establish procedures for mobilization of 
military retirees in conformance with this part.
    (2) Determine the extent of military retiree mobilization 
requirements based on existing inventories and inventory projections for 
mobilization of qualified Reservists in an active status in the Ready 
Reserve, the Inactive National Guard, or the Standby Reserve.
    (3) Develop procedures for identifying categories I and II retirees 
and conduct screening of retirees using this part for guidance.
    (4) Maintain personnel records and other necessary records for 
military retirees, including date of birth, date of retirement, current 
address, and documentation of military qualifications. Maintain records 
for categories I and II military retirees, including retirees who are 
key employees and their availability for mobilization, civilian 
employment, and physical condition. Data shall be maintained on retired 
Reserve members in accordance with 32 CFR part 114.
    (5) Advise military retirees of their duty to provide the Military 
Services with accurate mailing addresses and any changes in civilian 
employment, military qualifications, availability for service, and 
physical condition.
    (6) Preassign retired members, when determined appropriate and as 
necessary.
    (7) Determine refresher training requirements in accordance with the 
criteria established in Sec. 64.6(a)(8).



Sec. 64.6  Procedures.

    (a) Premobilization--(1) Management of military retirees. Military 
retiree management systems should provide for rapid identification of 
retiree location and military skills to expedite reporting of retirees 
to a wide range of assignments and geographic locations in mobilization 
or crisis. As part of the criteria for assignment of individuals to 
specific mobilization billets, the Military Services should consider the 
criticality of the mobilization billet, the skills of the individual, 
and his or her geographic proximity to the place of assignment. To the 
extent possible, military retirees should be given the opportunity to 
volunteer for specific assignments. The Military Departments shall 
develop plans and procedures to identify military retirees excess to 
their needs. The Military Departments, other DoD Components, FEMA, SSS, 
and other Federal Agencies, as appropriate, shall provide a list of 
requirements to the Department of

[[Page 319]]

Defense. The Department of Defense shall establish priorities for fill 
once all requirements and excess personnel are identified and provide 
redistribution guidance.
    (2) Requirement validation. The OASD(FM&P) shall review and validate 
each mobilization requirement for a military retiree. The criteria 
considered shall be the structure of the organization, the expanded 
workload requirements in a mobilization environment, current manpower 
authorizations, and existing manpower infrastructures supporting the 
organizations.
    (3) Assignment priority. The priority for use of military retirees 
shall be:
    (i) Use by their own Service.
    (ii) Use by another Service or a Defense Agency.
    (iii) Use by a civilian Federal Department or Agency.
    (iv) Any other approved use.
    (4) Preassignment of categories I and II military retirees. When 
determined appropriate by the Military Service concerned, military 
retirees who physically are qualified maximally should be preassigned in 
peacetime, either voluntarily or involuntarily, to installations or to 
mobilization positions that must be filled within 30 days after 
mobilization. Key employees and category III retirees shall not be 
preassigned involuntarily. Severe hostilities may prevent the 
transmittal of mobilization orders to military retirees. All military 
retirees preassigned to mobilization positions or installations, either 
voluntarily or involuntarily, shall be issued preassignment or 
contingent preassignment orders.
    (5) Category III military retirees. The nature and extent of the 
mobilization of category III retirees shall be determined by each 
Military Service, based on the retiree's military skill and, if 
applicable, the nature and degree of the retiree's disability. Category 
III retirees generally should be assigned to civilian jobs, unless they 
have critical skills or volunteer for specific military jobs. Age or 
disability alone may not be the sole basis for excluding a retiree from 
active Military Service during mobilization.
    (6) Military retirees living overseas. Military retirees who live 
overseas maximally shall be preassigned in peacetime, as determined by 
the Military Service concerned, to meet mobilization augmentation 
requirements at overseas, U.S., or allied military installations or 
activities that are near their places of residence.
    (7) Military retiree information. The development and maintenance of 
current information on the mobilization availability of military 
retirees shall be the responsibility of the Military Services. Such 
information shall include, but not be limited to, date of retirement, 
date of birth, current address, and military qualifications. 
Additionally, the Military Services shall maintain information on the 
availability for mobilization and the physical condition of categories I 
and II military retirees. Indication of physical condition may be from 
certification by the individual military retiree.
    (8) Refresher training. Each Military Service shall determine the 
necessity for, and the frequency of, refresher training of military 
retirees, based on the needs of the Military Service and the specific 
military skill of the military retiree. Emphasis should be on voluntary 
refresher training. Civilian-acquired skills may eliminate the need for 
refresher training.
    (9) Screening of military retirees--(i) Each Military Service shall 
develop procedures for identifying categories I and II retirees, and 
shall conduct screening of retirees using this part and 32 CFR part 44 
as guidance in formulating screening criteria.
    (ii) All military retirees shall be advised to inform their 
employers concerning their liability for recall to active duty in a 
mobilization or national emergency, and, when applicable, the procedures 
for designating their position as a key position.
    (iii) Federal employers annually shall review their employment rolls 
to determine if they employ any military retirees who are filling key 
positions, as defined in Sec. 64.3.
    (iv) Non-Federal employers also are encouraged to use the key 
position guidelines for making their own key position designations and, 
when applicable, for recommending certain military retirees for key 
employees status.

[[Page 320]]

    (v) Key position designation guidelines. In determining whether or 
not a position should be designated as a key position, employers should 
consider the following criteria:
    (A) Can the position be filled in a reasonable time after 
mobilization?
    (B) Does the position require technical or managerial skills that 
are possessed uniquely by the incumbent employee?
    (C) Is the position associated directly with Defense mobilization?
    (D) Does the position include a mobilization or relocation 
assignment in an Agency having emergency functions, as designated by 
E.O. 12656?
    (E) Is the position directly associated with industrial or manpower 
mobilization, as designated in E.O. 10480?
    (F) Are there other factors related to national defense, health, or 
safety that would make the incumbent of the position unavailable for 
mobilization?
    (vi) Employers who determine that a military retiree is filling a 
key position and should not be recalled to active duty in an emergency 
should report that determination to the cognizant military personnel 
center, using the letter format shown in Appendix A to this part. The 
list of Reserve personnel centers to which retiree-recall screening-
determination recommendations shall be forwarded is at Appendix B to 
this part.
    (b) Mobilization--(1) General. The Military Services shall establish 
plans and procedures to use those military retirees who meet specific 
skill and experience requirements to fill mobilization billets, when 
there is not enough active or qualified Reserve manpower available.
    (2) Involuntary order to active duty--(i) Twenty-year active 
military service retirees. The Secretary of a Military Department may 
order any retired Regular member, retired Reserve member who has 
completed at least 20 years of Active Service, or a member of the Fleet 
Reserve or Fleet Marine Corps Reserve to active duty at any time to 
perform duties deemed necessary in the interests of national defense in 
accordance with 10 U.S.C. 675 and 688. Retired Regular members of the 
Coast Guard may be ordered to active duty by the Secretary concerned 
only in time of war or national emergency in accordance with 14 U.S.C. 
331 and 359.
    (ii) Reserve. The Secretary of a Military Department may order any 
other retired member of a Reserve component of a Military Service to 
active duty for the duration of a war or emergency and for 6 months 
thereafter on the basis of required skills, provided:
    (A) War or national emergency has been declared by Congress.
    (B) The Secretary of the Military Department concerned, with the 
approval of the Secretary of Defense, determines there are not enough 
qualified Reserves in an Active status or in the Inactive National 
Guard, under 10 U.S.C. 672(a).
    (3) Graduated Mobilization Response. The Military Services shall 
develop plans and procedures for ordering military retirees to active 
duty in accordance with a schedule that includes pre-, partial, and full 
mobilization requirements.
    (c) Peacetime--(1) General. The Military Departments shall establish 
procedures to order military retirees to active duty during peacetime.
    (2) Voluntary order to active duty--(i) Twenty-year active military 
service retirees. The Secretary of a Military Department may order 
retired Regular members, retired Reserve members who have completed at 
least 20 years of active Military Service, or members of the Fleet 
Reserve or Fleet Marine Corps Reserve to active duty with their consent 
at any time in accordance with 10 U.S.C. 688.
    (ii) Other Reserve retirees. The Secretary of a Military Department 
may order other retired members of a Reserve component to active duty 
with their consent in accordance with 10 U.S.C. 672(d).
    (3) Involuntary order to active duty. The Secretary of a Military 
Department may order any retired Regular member, retired Reserve member 
who has completed at least 20 years of active Military Service, or a 
member of the Fleet Reserve or Fleet Marine Corps Reserve to active duty 
without the member's consent at any time to perform duties deemed 
necessary in the interests of national defense in accordance with 10 
U.S.C. 688. This includes the authority to order a retired member who is 
subject to the Uniform Code

[[Page 321]]

of Military Justice (UCMJ) to active duty to facilitate the exercise of 
court-martial jurisdiction under 10 U.S.C. 802(a). A retired member may 
not be involuntarily ordered to active duty solely for obtaining court-
martial jurisdiction over the member.

  Appendix A to Part 64--Letter Format to Cognizant Service Personnel 
   Center Requesting Employee Be Screened From Retiree-Recall Program

From: (employer-Agency or company)
To: (appropriate Military Service personnel center)
Subject: Request for Employee to Be Removed from Retiree-Recall Program
    This is to certify that the employee identified below is essential 
to the nation's defense efforts in (his or her) civilian job and cannot 
be mobilized with the Military Services in an emergency for the 
following reasons:
    Therefore, I request that (he or she) be exempted from recall to 
active duty in a mobilization or national emergency and that you advise 
me accordingly when that action has been completed.
    The employee is:
Name of employee (last, first, M.I.)
Military grade and Military Service component
Social security number
Current home address (street, city, State, and ZIP code)
Title of employee's civilian position
Grade or salary level of civilian position
Date (YYMMDD) hired or assigned to position

 _______________________________________________________________________
Signature and Title of Agency
Company Official

   Appendix B to Part 64--List of Reserve Personnel Centers to Which 
        Retiree-Recall Screening Determination Shall Be Forwarded

                                  Army

    Commander
    U.S. Army Reserve Personnel Center
    ATTN: DARP-PAR-M
    9700 Page Boulevard
    St. Louis, MO 63132-5200

                                  Navy

    Commanding Officer
    Naval Reserve Personnel Center
    ATTN: NRPC Code 10
    New Orleans, LA 70149

                              Marine Corps

    Commandant (Code RES)
    Headquarters, U.S. Marine Corps
    Washington, DC 20380

                                Air Force

    Air Reserve Personnel Center
    7300 East First Avenue
    Denver, CO 80280

                               Coast Guard

    Commandant (G-RSM-1)
    U.S. Coast Guard
    2100 Second St. SW.
    Washington, DC 20593



PART 65--ACCESSION OF CHAPLAINS FOR THE MILITARY SERVICES--Table of Contents




Sec.
65.1  Purpose.
65.2  Applicability.
65.3  Policy.
65.4  Responsibilities.
65.5  Procedures.

Appendix to Part 65--Ecclesiastical Endorsing Agent Certification

    Authority: 10 U.S.C. 532, 591, and EO 9397, 3 CFR, 1943-1948 Comp., 
p. 283.

    Source: 53 FR 48898, Dec. 5, 1988, unless otherwise noted.



Sec. 65.1  Purpose.

    This part: (a) Revises 32 CFR part 65 to update policy, procedures, 
and responsibilities.
    (b) Establishes the educational and ecclesiastical requirements for 
appointment of military chaplains.
    (c) Establishes criteria and procedures under which faith groups may 
become ecclesiastical endorsing agents.



Sec. 65.2  Applicability.

    This part applies to the Office of the Secretary of Defense (OSD), 
the Military Departments (including their National Guard and Reserve 
components), and the Joint Staff (hereafter referred to collectively as 
``DOD Components''). The term``Military Services,'' as used herein, 
refers to the Army, Navy, Air Force, and Marine Corps.



Sec. 65.3  Policy.

    It is DOD policy that professionally qualified chaplains shall be 
appointed to provide for the free exercise of religion for all members 
of the Military

[[Page 322]]

Services, their dependents, and other authorized persons. Persons 
appointed to the chaplaincy shall be able to perform a ministry for 
their own specific faith groups, and provide for ministries appropriate 
to the rights and needs of persons of other faith groups. Persons 
appointed to the chaplaincy shall be capable of providing professional 
staff support to the Military Department concerned.



Sec. 65.4  Responsibilities.

    (a) The Assistant Secretary of Defense (Force Management and 
Personnel) (ASD(FM&P)) may issue additions implementing guidance 
consistent with DOD 5025.1-M, as appropriate.
    (b) The Secretaries of the Military Departments shall follow the 
policy and procedures in this part to ensure that persons appointed to 
the chaplaincy shall meet the minimum professional and educational 
qualifications prescribed herein and any additional requirements 
established by law and regulation for appointment as an officer and a 
chaplain.



Sec. 65.5  Procedures.

    (a) Ecclesiastical Certification of Clergy
    (1) To be considered for appointment and to serve as a chaplain, 
clergy shall be certified by a DOD-recognized ecclesiastical endorsing 
agent. The ecclesiastical certification shall attest that the applicant:
    (i) Is a fully qualified member of the clergy of a religious faith 
group represented by the certifying Agency.
    (ii) Is qualified to provide directly or indirectly for the free 
exercise of religion by all members of the Military Services, their 
dependents, and other authorized persons.
    (2) The required ecclesiastical certification shall be made on DD 
Form 2088, ``Ecclesiastical Endorsing Agent Certification.'' If the 
applicant has completed a number of years of active professional 
experience after the completion of educational requirements for the 
chaplaincy, the certifying agent shall so state on DD Form 2088.
    (3) Chaplains who fail to maintain their ecclesiastical 
certification shall be processed in accordance with DOD Directive 
1332.31.\1\
---------------------------------------------------------------------------

    \1\ Copies may be obtained if needed, from the U.S. Naval 
Publication and Forms Center, 5801 Tabor Avenue, Attn: Code 301, 
Philadelphia, PA 19120.
---------------------------------------------------------------------------

    (b) Criteria for Ecclesiastical Endorsing Agencies. (1) Religious 
faith groups that seek to become ecclesiastical endorsing agents for the 
purpose of certifying the professional qualifications of clergy for 
appointment as chaplains in the Military Services shall obtain DOD 
recognition through the action of the Armed Forces Chaplains Board 
(AFCB). To be considered for DOD recognition, each religious faith group 
shall:
    (i) Be organized exclusively or substantially to provide religious 
services to a lay constituency.
    (ii) Be able to exercise ecclesiastical authority to grant or 
withdraw ecclesiastical certification.
    (iii) Be able to provide continuing validation of ecclesiastical 
certification.
    (iv) Be able to certify clergy who are qualified to provide directly 
or indirectly for the free exercise of religion by all members of the 
Military Services, their dependents, and other authorized persons.
    (v) Abide by the applicable DOD regulations and policies.
    (2) Through the action of the AFCB, the Department of Defense may 
revoke its recognition of an ecclesiastical endorsing agent that fails 
to continue to meet the criteria of paragraphs (b)(1) (i) through (v) of 
this section. The AFCB, before revoking the recognition of an 
ecclesiastical endorsing agent, shall provide written notice to the 
Agency concerned stating the reasons for the proposed revocation and 
providing a reasonable opportunity for the Agency to reply in writing to 
the AFCB.
    (3) Religious faith groups recognized by the Department of Defense 
as ecclesiastical endorsing agents may authorize third parties to act on 
their behalf for accomplishing the administrative procedures in 
accession of chaplains for the Military Services, and of maintaining 
liaison with chaplains of the recognized faith group. Each such 
authorization shall be made in writing by an official authorized by the 
faith group to

[[Page 323]]

grant such authorization, and a copy of the authorization shall be filed 
with the AFCB.
    (c) Educational Requirements. (1) To be considered for appointment 
as a chaplain in the Military Services, an applicant shall:
    (i) Possess a baccalaureate degree of not less than 120 semester 
hours from a college that is listed in the ``Education Directory, 
Colleges and Universities'' \2\ or from a school whose credits are 
accepted by a college listed in the Directory Education.
---------------------------------------------------------------------------

    \2\ Current edition published by U.S. Department of Education, 
National Center for Education Statistics, Washington, DC 20202.
---------------------------------------------------------------------------

    (ii) Have completed 3 resident years of graduate professional study 
in theology or related subjects (normally validated by the possession of 
a Master of Divinity degree, an equivalent degree, or 90 semester hours) 
that lead to ecclesiastical certification as a member of the clergy 
fully qualified to perform the ministering functions of a chaplain.
    (2) The applicant shall complete the graduate professional study 
referred to in Sec. 65.5(c)(1)(ii), at a graduate school listed in the 
Education Directory, Colleges and Universities; an accredited school 
listed in the ``Directory, ATS Bulletin, Part 4''; \3\ or from a school 
whose credits are accepted by a school listed in the Directory or listed 
as accredited in the ``Directory, ATS Bulletin, part 4.''
---------------------------------------------------------------------------

    \3\ Current edition published by the Association of Theological 
Schools, Vandalia, Ohio 45377.
---------------------------------------------------------------------------

    (d) Other Requirements. Applicants for the chaplaincy also shall 
meet the requirements established by the Military Departments for 
appointment as an officer and a chaplain.

[[Page 324]]

    Appendix to Part 65--Ecclesiastical Endorsing Agent Certification
[GRAPHIC] [TIFF OMITTED] TC23OC91.009

[54 FR 974, Jan. 11, 1989]

[[Page 325]]



PART 67--EDUCATIONAL REQUIREMENTS FOR APPOINTMENT OF RESERVE COMPONENT OFFICERS TO A GRADE ABOVE FIRST LIEUTENANT OR LIEUTENANT (JUNIOR GRADE)--Table of Contents




Sec.
67.1  Purpose.
67.2  Applicability.
67.3  Definitions.
67.4  Policy.
67.5  Responsibilities.
67.6  Procedures.

    Authority:  10 U.S.C. 12205.

    Source: 62 FR 55517, Oct. 27, 1997, unless otherwise noted.



Sec. 67.1  Purpose.

    This part provides guidance for implementing policy, assigns 
responsibilities, and prescribes under 10 U.S.C. 12205 for identifying 
criteria for determining educational institutions that award 
baccalaureate degrees which satisfy the educational requirement for 
appointment of officers to a grade above First Lieutenant in the Army 
Reserve, Air Force Reserve, and Marine Corps Reserve, or Lieutenant 
(Junior Grade) in the Naval Reserve, or for officers to be federally 
recognized in a grade level above First Lieutenant as a member of the 
Army National Guard or Air National Guard.



Sec. 67.2  Applicability.

    This part applies to the Office of the Secretary of Defense, and the 
Military Departments; the Chairman of the Joint Chiefs or Staff; and the 
Defense Agencies referred to collectively in this part as the ``DoD 
Components''). The term ``Military Departments,'' as used in this part, 
refers to the Departments of the Army, the Navy, and the Air Force. The 
term ``Secretary concerned'' refers to the Secretaries of the Military 
Departments. The term ``Military Services'' refers to the Army, the 
Navy, the Air Force, the Marine Corps. The term ``Reserve components'' 
refers to the Army Reserve, Army National Guard of the United States, 
Air Force Reserve, Air National Guard of the United States, Naval 
Reserve, Marine Corps Reserve.



Sec. 67.3  Definitions.

    Accredited educational institution. An educational institution 
accredited by an agency recognized by the Secretary of Education.
    Qualifying educational institution. An educational institution that 
is accredited, or an unaccredited educational institution that the 
Secretary of Defense designates pursuant to Sec. 67.6(a) and 
Sec. 67.6(b).
    Unaccredited educational institution. An educational institution not 
accredited by an agency recognized by the Secretary of Education.



Sec. 67.4  Policy

    (a) It is DoD policy under 10 U.S.C. 12205 to require Reserve 
component officers to have at least a baccalaureate degree from a 
qualifying educational institution before appointment to a grade above 
First Lieutenant in the Army Reserve, Air Force Reserve or Marine Corps 
Reserve, or Lieutenant (Junior Grade) in the Naval Reserve, or for 
officers to be federally recognized in a grade above First Lieutenant as 
a member of the Army National Guard or Air National Guard.
    (b) Exempt from this policy is any officer who was:
    (1) Appointed to or recognized in a higher grade for service in a 
health profession for which a baccalaureate degree is not a condition of 
original appointment or assignment.
    (2) Appointed in the Naval Reserve or Marine Corps Reserve as a 
limited duty officer.
    (3) Appointed in the Naval Reserve for service under the Naval 
Aviation Cadet (NAVCAD) program or the Seaman to Admiral program.
    (4) Appointed to or recognized in a higher grade if appointed to, or 
federally recognized in, the grade of captain or, in the case of the 
Navy, lieutenant before October 1, 1995.
    (5) Recognized in the grade of captain or major in the Alaska Army 
National Guard, who resides permanently at a location in Alaska that is 
more than 50 miles from each of the cities of Anchorage, Fairbanks, and 
Juneau, Alaska, by paved road, and who is serving in a Scout unit or a 
Scout support unit.
    (c) The Department of Defense will designate an unaccredited 
educational

[[Page 326]]

institution as a qualifying educational institution for the purpose of 
meeting this educational requirement if that institution meets the 
criteria established in this part.



Sec. 67.5  Responsibilities.

    (a) The Assistant Secretary of Defense for Reserve Affairs, under 
the Under Secretary of Defense for Personnel and Readiness, shall:
    (1) Establish procedures by which an unaccredited educational 
institution can apply for DoD designation as a qualifying educational 
institution.
    (2) Publish in the Federal Register DoD requirements and procedures 
for an unaccredited educational institution to apply for designation as 
a qualifying education institution.
    (3) Annually, provide to the Secretaries of the Military Departments 
a list of those unaccredited educational institutions that have been 
approved by the Department of Defense as a qualifying educational 
institution. This list shall include the year or years for which 
unaccredited educational institutions are designed as qualifying 
educational institutions.
    (b) The Secretaries of the Military Departments shall establish 
procedures to ensure that after September 30, 1995, those Reserve 
component officers selected for appointment to a grade above First 
Lieutenant in the Army Reserve, Air Force Reserve, or Marine Corps 
Reserve, or Lieutenant (Junior Grade) in the Naval Reserve, or for 
officers to be federally recognized in a grade above First Lieutenant as 
a member of the Army National Guard or Air National Guard, who are 
required to hold a baccalaureate degree, were awarded a baccalaureate 
degree from a qualifying educational institution before appointment to 
the next higher grade. For a degree from an unaccredited educational 
institution that has been recognized as qualifying educational 
institution by the Department of Defense to satisfy the educational 
requirements of 10 U.S.C. 12205, the degree must not have been awarded 
more than 8 years before the date the officer is to be appointed, or 
federally recognized, in the grade of Captain in the Army Reserve, Army 
National Guard, Air Force Reserve, Air National Guard, or Marine Corps 
Reserve, or in the grade of Lieutenant in the Naval Reserve.



Sec. 67.6  Procedures.

    (a) An unaccredited educational institution may obtain designation 
as a qualifying educational institution for a specific Reserve component 
officer who graduated from that educational institution by providing 
certification from registrars at three accredited educational 
institutions that maintain ROTC programs that their educational 
institutions would accept at least 90 percent of the credit hours earned 
by that officer at the unaccredited educational institution, as of the 
year of graduation.
    (b) For an unaccredited educational institution to be designated as 
a qualifying educational institution for a specific year, that 
educational institution must provide the Office of the Assistant 
Secretary of Defense for Reserve Affairs certification from the 
registrars at three different accredited educational institutions that 
maintain ROTC programs listing the major field(s) of study in which that 
educational institution would accept at least 90 percent of the credit 
hours earned by a student who was awarded a baccalaureate degree in that 
major field of study at the unaccredited educational institution.
    (c) For an unaccredited educational institution to be considered for 
designation as a qualifying educational institution, the unaccredited 
educational institution must submit the required documentation no later 
than January 1 of the year for which the unaccredited educational 
institution seeks to be designated a qualifying educational institution.
    (d) The required documentation must be sent to the following 
address: Office of the Assistant Secretary of Defense for Reserve 
Affairs, Attn: DASD (M&P), 1500 Defense Pentagon, Washington, DC 20301-
1500.
    (e) Applications containing the required documentation may also be 
submitted at any time from unaccredited educational institutions 
requesting designation as a qualifying educational institution for prior 
school years.

[[Page 327]]



PART 68--PROVISION OF FREE PUBLIC EDUCATION FOR ELIGIBLE CHILDREN PURSUANT TO SECTION 6, PUBLIC LAW 81-874--Table of Contents




Sec.
68.1  References.
68.2  Purpose.
68.3  Applicability and scope.
68.4  Policy.
68.5  Definitions.
68.6  Responsibilities.
68.7  Effective date and implementation.

    Authority: 20 U.S.C. 241.

    Source: 52 FR 44389, Nov. 19, 1987, unless otherwise noted.



Sec. 68.1  References.

    (a) Public Law 97-35, ``Omnibus Budget Reconciliation Act of 1981,'' 
section 505(c), August 13, 1981 (20 U.S.C. 241 note).
    (b) Public Law 81-874 dated September 30, 1950, section 6, as 
amended (20 U.S.C. 241).
    (c) Public Law 95-561, ``Defense Dependents' Education Act of 
1978,'' sections 1009 and 1031(a), November 1, 1978 (20 U.S.C. 241).
    (d) Memorandum of Understanding Between The Department of Defense 
and The Department of Education, August 16, 1982.
    (e) Federal Register Document 84-11282, ``Process for Section 6 
Schools Operated by the Department of Defense,'' Federal Register, 
Volume 49, Number 82, page 18028, April 26, 1984.
    (f) Assistant Secretary of Defense (Force Management & Personnel) 
Memorandum, ``Education of Handicapped Students in Section 6 Schools 
Operated by the Department of Defense,'' December 10, 1986.
    (g) Public Law 94-142, ``Education for All Handicapped Children Act 
of 1975,'' as amended (20 U.S.C. 1401 et seq.).
    (h) DoD Directive 1020.1, ``Nondiscrimination on the Basis of 
Handicap in Programs and Activities Assisted or Conducted by the 
Department of Defense,'' March 31, 1982.
    (i) DoD 7220.9-M, ``Department of Defense Accounting Manual,'' 
October 1983, authorized by DoD Instruction 7220.9, October 22, 1981.
    (j) DoD Directive 7600.6, ``Audit of Nonappropriated Funds and 
Related Activities,'' January 4, 1974.
    (k) DoD Directive 5500.7, ``Standards of Conduct,'' January 15, 
1977.



Sec. 68.2  Purpose.

    This part:
    (a) Establishes policies and prescribes procedures for the 
Department of Defense (DoD) to make arrangements (as defined in 
Sec. 68.5) for the provision of free public education to eligible 
dependent children as authorized by Sec. 68.1 (a), (b), and (c).
    (b) Implements Sec. 68.1 (a), (b), (d), and (e).



Sec. 68.3  Applicability and scope.

    This part applies to:
    (a) The Office of the Secretary of Defense (OSD), the Military 
Departments, and the Defense Agencies.
    (b) The schools operated by DoD within the Continental United States 
(CONUS), Alaska, Hawaii, Puerto Rico, Wake Island, Guam, American Samoa, 
the Northern Mariana lslands, and the Virgin Islands.



Sec. 68.4  Policy.

    (a) In conformity with Sec. 68.1 (a), (b), and (c), it is DoD policy 
that dependent children of U.S. military personnel and federally 
employed civilian personnel residing on Federal property be educated, 
whenever suitable, in schools operated and controlled by local public 
school systems.
    (b) When it is not suitable for the children of U.S. military 
personnel and federally employed civilian personnel to0attend a locally 
operated public school, the Secretary of Defense, or designee, shall 
make arrangements for the free public education of such children. These 
arrangements may include the establishment of schools within the United 
States and specified possessions.
    (c) The arrangements for such free public education shall be made by 
the Secretary of Defense, or designee, either with a local educational 
agency, or with the Head of a Federal Department or Agency, whichever in 
the judgment of the Secretary, or designee, appears to be more 
applicable. If such an arrangement is made with the Head of a Federal 
Department or Agency, either it must administer the property on which 
the children to be educated

[[Page 328]]

reside or, if the local schools are unavailable to the children of 
members of the Armed Forces on active duty because of official State or 
local action and no suitable free public education may be provided by a 
local educational agency, the Department or Agency must have 
jurisdiction over the parents of some or all of such children.
    (d) Section 6 School Arrangements are required, to the maximum 
extent practicable, to provide educational programs comparable to those 
being provided by local public educational agencies in comparable 
communities in the State where the Section 6 School Arrangement is 
located. If the Section 6 School Arrangement is outside of CONUS, 
Alaska, or Hawaii, it shall provide, to the maximum extent practicable, 
educational programs that are comparable to the free public education 
provided by the District of Columbia.
    (e) Section 6 School Arrangements operated by DoD under 68.1 (a)l 
(b), and (d) shall comply, except as provided in this paragraph, with 
Sec. 68.1(g). lf the State or other jurisdiction on which a Section 6 
School Arrangement's educational comparability is based has adopted a 
``State plan'' for the implementation of Sec. 68.1(g) that Section 6 
School Arrangement shall provide its handicapped students a free 
appropriate public education, as defined in Sec. 68.1(g). That 
education, except as follows in this paragraph, is consistent with such 
State plan. To satisfy this responsibility, Section 6 School 
Arrangements shall conform to the substantive and procedural provisions 
of Sec. 68.1(g), except for those relating to impartial due process 
hearings in section 1415 of Sec. 68.1(g). The procedures of such Section 
6 School Arrangements for the identification, assessment, and 
programming of handicapped students in special education and related 
services must conform to the comparable State's regulatory guidelines. 
Complaints with respect to the identification, evaluation or educational 
placement of, or the free appropriate public education provided to, 
students in such a Section 6 School Arrangement who are or may be 
handicapped shall be investigated under enclosure 5 to DoD Directive 
1020.1 \1\ (Sec. 68.1(h)). lf the State on which a Section 6 School 
Arrangement's comparability is based has not adopted a State plan, the 
State plan of an adjacent State must be followed. If no adjacent State 
has adopted a State plan, the State plan of another State that is 
similar to the State in which the Section 6 School Arrangement is 
located shall be selected.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, ATTN: Code 1052, 5801 Tabor Avenue, 
Philadelphia, PA 19120.
---------------------------------------------------------------------------

    (f) After consultation with the Military Departments, funds shall be 
made available for the operation and maintenance of Section 6 School 
Arrangements, on either a direct or reimbursable basis, to the 
comptroller at the respective military installation. These funds shall 
remain separate and distinct from the funds of the individual Military 
Services.
    (g) Attendance in Section 6 School and Special Arrangements within 
CONUS, Alaska, and Hawaii is limited to eligible dependent children 
under Sec. 68.1(b). Guidance, consistent with Sec. 68.1 (b) and (c) for 
student eligibility for Section 6 School Arrangements located outside of 
CONUS, Alaska, and Hawaii shall be established by the Military 
Department concerned after coordination and approval by the General 
Counsel of the Department of Defense, or designee, and the Assistant 
Secretary of Defense (Force Management and Personnel), or designee.
    (h) Where a member of the Armed Forces is transferred or retires and 
the member's family moves after the start of the school year from on-
base (post) housing, the member's children shall be permitted to 
continue in attendance at the Section 6 School Arrangement for the 
remainder of the school year during which the transfer or retirement 
occurred, if the child is residing with a parent or legal guardian or 
another person acting in loco parentis.
    (i) Where a member of the Armed Forces is assigned to an 
installation on which there is a Section 6 School Arrangement and is 
assigned on-base (post) family housing that is expected to be available 
for occupancy and to be occupied within 90 school days from

[[Page 329]]

the reporting date, the member's children may be permitted to attend the 
school while residing in an area adjacent to such Federal property. 
Transportation for children attending a Section 6 School Arrangement 
under these conditions is the responsibility of the parent.



Sec. 68.5  Definitions.

    Adjacent area. A geographic location that is next to or near Federal 
property. This normally should include a student commuting area within 
45 minutes of the Federal property, unless another area identified as 
adjacent is designated specifically by an administrator of the Federal 
property; i.e., the installation commander.
    Arrangements. Actions taken by the Secretary of Defense to provide a 
free public education to dependent children under Pub. L. 81-874 
through, first, Section 6 School Arrangements or, second, Section 6 
Special Arrangements:`
    (a) Section 6 School Arrangement. When a DoD-operated scxool is 
established on Federal property to provide a free public education for 
eligible children or, if not established on such property, the eligible 
child resides on such property.
    (b) Section 6 Special Arrangement. An agreement, under Sec. 68.1(b), 
between the Secretary of Defense, or designee, the ASD(FM&P), or 
designee, or the Secretary of a Military Department, or designee, and a 
local public education agency whereby a school or a school system 
operated by the local public education agency provides educational 
services to eligible dependent children of U.S. military personnel and 
federally employed civilian personnel. Arrangements result in partial or 
total Federal funding to the local public education agency for the 
educational services provided.
    Comparability. Comparability is the act of demonstrating that the 
educational services and programs, school plant and facilities, budget 
and per-pupil expenditures, and all associated activities and services 
provided in Section 6 School Arrangements for the free public education 
of eligible dependent children are, to the maximum extent practicable, 
equivalent in quality and availability to those provided by school 
districts in the State where the Section 6 School Arrangement is located 
or the district(s) to which it is compared. Each Section 6 School 
Arrangement, in coordination with the Military Department concerned, 
shall provide an annual statement, with supporting documentation, which 
demonstrates its comparability.
    Dependent children. Children who reside on Federal property, or are 
minor dependents who are the children, stepchildren, adopted children, 
or wards of U.S. military sponsors or federally employed sponsors, or 
who are residents in the households of bona fide sponsors who stand in 
loco parentis to such individuals and who receive one-half or more of 
their support from such sponsors, and are within the age limits for 
which the applicable State provides free public education.
    Federal property. Real property that is owned or leased by the 
United States.
    Free public education. Education that is provided at public expense 
under public supervision and direction without charge to the sponsor of 
a child, and that is provided at the elementary or secondary school 
level of the applicable State. The term shall not include any education 
provided beyond grade 12, except in the case of State policy regarding 
the education of handicapped students, nor does it preclude the 
collecting of tuition from an Agency responsible for the assignment of a 
child's sponsor resulting in the attendance of the child of a Section 6 
School Arrangement.
    Local educational agency. A board of education or other legally 
constituted local school authority having administrative control and 
direction of free public education in a county, township, independent, 
or other school district in a State. The term includes any State Agency 
operating and maintaining facilities for providing free public 
education.
    Parent. Includes a legal guardian or another person standing in loco 
parentis.
    State. A State, Puerto Rico, Wake Island, Guam, the District of 
Columbia, American Samoa, the Northern Mariana lslands, or the Virgin 
Islands.

[[Page 330]]

    State educational agency. The officer or Agency primarily 
responsible for State supervision of public elementary and secondary 
schools.



Sec. 68.6  Responsibilities.

    (a) The Assistant Secretary of Defense (Force Management and 
Personnel) (ASD(FM&P)), or designee, shall:
    (1) Ensure the development of policies and procedures for the 
operation, management, budgeting (in accordance with guidance provided 
by the Assistant Secretary of Defense (Comptroller) (ASD(C)), 
construction, and financing of Section 6 Schools and for Section 6 
Special Arrangements.
    (2) Ensure that arrangements shall be made for the free public 
education of eligible dependent children in CONUS, Alaska, Hawaii, 
Puerto Rico, Wake Island, Guam, American Samoa, the Northern Mariana 
Islands, and the Virgin Islands, under Sec. 68.1 (a), (b), and (c).
    (3) Ensure the establishment of elected school boards in Section 6 
School Arrangements operating under Sec. 68.1 (a) and (b).
    (4) Ensure that the free public education being provided is, to the 
maximum extent practicable, of the kind and quality as that being 
provided by comparable public school districts in the State in which the 
Section 6 School Arrangement or Section 6 Special Arrangement is located 
or, if outside of CONUS, Alaska, and Hawaii, as that being provided by 
the District of Columbia public schools.
    (5) Ensure the establishment of audit procedures for reviewing 
funding of Section 6 School Arrangements and Section 6 Special 
Arrangements under Sec. 68.1 (a), (b), and (c).
    (6) Ensure timely and accurate preparation of budget execution 
reports and full compliance with accounting requirements in accordance 
with DoD 7220.9-M \2\ (Sec. 68.1(i)).
---------------------------------------------------------------------------

    \2\ Copies may be obtained, at cost, from the U.S. Department of 
Commerce, National Technical Information Service, 5285 Port Royal Road, 
Springfield, Va 22161.
---------------------------------------------------------------------------

    (7) Approve guidance for student eligibility established by a 
Military Department for Section 6 School Arrangements located outside of 
CONUS, Alaska, and Hawaii.
    (b) The General Counsel of the Department of Defense (GC, DoD), or 
designee, shall:
    (1) Approve guidance established by a Military Department for 
student eligibility for Section 6 School Arrangements located outside of 
CONUS, Alaska, and Hawaii.
    (2) Provide legal advice for the implementation of this part.
    (c) The Secretaries of the Military Departments, or designees, 
shall:
    (1) Comply with this Directive, including policies and procedures 
promulgated under Sec. 68.6(a)(1), and ensure that Section 6 School 
Arrangements on their respective installations or under their 
jurisdiction are maintained and operated under this part.
    (2) Submit budgets to the ASD(FM&P) for operation and maintenance, 
procurement, and military construction for each Section 6 School 
Arrangement and each Section 6 Special Arrangement under OSD guidelines.
    (3) Ensure that there is an elected school board at each Section 6 
School Arrangement.
    (4) Ensure the establishment of a means for employing personnel and, 
as required, for programming manpower spaces for such employees, all 
subject to applicable laws and regulations.
    (5) Ensure that each Section 6 School Arrangement has current 
operating guidelines.
    (6) Ensure that nonappropriated funds and related activities of 
Section 6 School Arrangements are reviewed under DoD Directive 7600.6 
\3\ (Sec. 68.1(j)).
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 68.4(e).
---------------------------------------------------------------------------

    (7) Establish guidance, consistent with Sec. 68.1 (b) and (c), for 
student eligibility to attend Section 6 School Arrangements located 
outside of CONUS, Alaska, and Hawaii and operated by the Military 
Department concerned. Gain the approval of the ASD(FM&P), or designee, 
and the GC, DoD, or designee, before implementation.
    (d) The Installation Commanders, or for Puerto Rico, the Area 
Coordinator, shall:
    (1) Provide resource and logistics support at each Section 6 School 
Arrangement located on the installation.

[[Page 331]]

    (2) Ensure the establishment and operation of an elected school 
board at the Section 6 School Arrangement.
    (3) Ensure the implementation of DoD Directive 5500.7 \4\ 
(Sec. 68.1(k)) and that all Section 6 School Arrangement personnel are 
counseled and familiarized with its contents.
---------------------------------------------------------------------------

    \4\ See footnote 1 to Sec. 68.4(e).
---------------------------------------------------------------------------

    (4) Provide installation staff personnel to advise the school board 
in budget, civil engineering, law, personnel, procurement, and 
transportation matters, when applicable.
    (5) Disapprove actions of the school board that conflict with 
applicable statutes or regulations. Disapprovals must be in writing to 
the school board and shall note the specific reasons for the 
disapprovals. A copy of this action shall be forwarded through channels 
of the Military Department concerned to the ASD(FM&P), or designee.
    (6) Ensure the safety of students traveling to and from the on-base 
(post) school(s).
    (7) Ensure that comptrollers and other support elements comply with 
the authorized execution of funds for Section 6 School Arrangements in 
accordance with the budget approved by the ASD(FM&P), or designee.
    (e) The Section 6 Dependents' School Board shall:
    (1) Review and monitor school expenditures and operations, subject 
to audit procedures established under this part and consistent with 
Sec. 68.1 (a) and (b).
    (2) Conduct meetings, approve agendas, prepare minutes, and conduct 
other activities incident to and associated with Section 6 School 
Arrangements.
    (3) Recruit and select a Superintendent for the Section 6 School 
Arrangement under the school board's jurisdiction.
    (4) Provide the Superintendent with regular constructive written and 
oral evaluations of his or her performance. Evaluations should be linked 
to goals established by the school board with the assistance of the 
Superintendent.
    (5) Provide the Superintendent the benefit of the school board's 
counsel in matters on individual school board member's expertise.
    (6) Ensure the attendance of the Superintendent, or designee, at all 
school board meetings.
    (7) Review and approve school budgets prior to submission to the 
ASD(FM&P), or designee, through channels of the Military Department 
concerned.
    (8) Establish policies and procedures for the operation and 
administration of the Section 6 School Arrangement(s).
    (9) Provide guidance and assistance to the Superintendent in the 
execution and implementation of school board policies, rules, and 
regulations.
    (10) Consult with the Superintendent on pertinent school matters, as 
they arise, which concern the school and on which the school board may 
take action.
    (11) Channel communications with school employees that require 
action through the Superintendent, and refer all applications, 
complaints, and other communications, oral or written, to the 
Superintendent in order to ensure the proper processing of such 
communications.
    (12) Establish policies and procedures for the effective processing 
of, and response to, complaints.
    (f) The Section 6 School Arrangement Superintendent shall:
    (1) Serve as the chief executive officer to the school board to 
ensure the implementation of the school board's policies, rules, and 
regulations.
    (2) Attend all school board meetings, or send a designee when unable 
to attend, sitting with the school board as a non-voting member.
    (3) Provide advice and recommendations to the school board and the 
Installation Commander or Area Coordinator on all matters and policies 
for the operation and administration of the school system.
    (4) Recruit, select, and assign all professional and support 
personnel required for the school system. Teachers and school 
administrators shall hold, at a minimum, a current and applicable 
teaching or supervisory certificate, respectively, from any of the 50 
States, Puerto Rico, the District of Columbia, or the DoD Dependents' 
Schools system. Additional certification may be necessary to comply with 
respective

[[Page 332]]

State or U.S. national accreditation association standards and 
requirements.
    (5) Determine retention or termination of employment of all school 
personnel under applicable Federal regulations.
    (6) Organize, administer, and supervise all school personnel to 
ensure that the curriculum standards, specialized programs, and level of 
instruction are comparable to accepted educational practices of the 
State or the District of Columbia, as applicable.
    (7) Be responsible for the fiscal management and operation of the 
school system to include execution of the budget as approved by 
ASD(FM&P), or designee, and in accordance with school board guidance.
    (8) Ensure the evaluation of all school employees on a regular 
basis.
    (9) Ensure the maintenance of all school buildings, grounds, and 
property accounting records.
    (10) Ensure the procurement of necessary school supplies, equipment, 
and services.
    (11) Ensure the preparation of the annual Section 6 School 
Arrangement budget as approved by the school board, and as required by 
the ASD(FM&P), or designee, and the Military Department concerned, in 
accordance with guidance provided by the ASD(C), or designee, under DoD 
7220.9-M.
    (12) Ensure the maintenance of a professional relationship with 
local and State school officials.
    (13) Ensure, wherever practicable, the maintenance of accreditation 
of the Section 6 School Arrangement by the State and/or applicable 
regional accreditation agencies.
    (14) Operate the school consistent with applicable Federal statutes 
and regulations, and with State statutes and regulations that are made 
applicable to the Section 6 School Arrangement by this part.
    (15) Ensure the submission of an annual statement to the Military 
Department concerned demonstrating comparability of the free public 
education provided in the Section 6 School Arrangement(s).
    (16) Ensure the implementation of the local State plan or regulatory 
guidelines for compliance with Sec. 68.1(g). If the State on which a 
Section 6 School Arrangement's comparability is based has not adopted a 
State plan, the responsible Section 6 School System Superintendent shall 
choose the State plan of an adjacent State to follow. If no adjacent 
State has adopted a State plan, the Superintendent shall select the 
State plan of another State that is similar to the State in which the 
Section 6 School Arrangement is located.
    (g) Section 6 School Board Elections. A school board for a Section 6 
School Arrangement, as authorized by section 1009(d) of Sec. 68.1(c), 
shall be empowered to oversee school expenditures and operations, 
subject to audit procedures established by the Secretary of Defense and 
under Sec. 68.1(b). The Secretary of the respective Military Department 
shall:
    (1) Ensure that the school board is composed of a minimum of three 
members elected only by parents or legal guardians (military or 
civilian) of students attending the school at the time of the election. 
The terms for school board members are to be established as between one 
and three years.
    (2) Ensure the following procedures for a school board election are 
observed:
    (i) Parents shall have adequate notice of the time and place of the 
election.
    (ii) Election shall be conducted by secret ballot. The candidate(s) 
receiving the greatest number of votes shall be elected as school board 
member(s).
    (iii) Personnel employed in the school system shall not be school 
board members, except for the Superintendent, who serves as a non-voting 
member.
    (iv) Nominations shall be by petition of parents of students 
attending the school at the time of the election. Votes may be cast at 
the time of election for write-in candidates who have not filed a 
nomination petition if the write-in candidates otherwise are qualified 
to serve in the positions sought.
    (v) The election process shall provide for the continuity of school 
board operations.
    (vi) Vacancies that occur among members of the elected school board 
may be filled to complete unexpired

[[Page 333]]

terms by either election of members by a special election process or by 
a school board election process if at least three school board members 
serving were elected by parents. Members elected to fill unexpired terms 
shall not serve more than one year, unless elected by parents of the 
students.
    (vii) The responsibility for developing the plans for and conducting 
the school board election rests with the Superintendent and the school 
board.
[52 FR 44389, Nov. 19, 1987, as amended at 53 FR 49981, Dec. 13, 1988]



Sec. 68.7  Effective date and implementation.

    This part is effective October 16, 1987. The Secretary of each 
Military Department shall forward two copies of the Military 
Department's implementing documents to the ASD(FM&P) within 120 days.



PART 69--SCHOOL BOARDS FOR DEPARTMENT OF DEFENSE DOMESTIC DEPENDENT ELEMENTARY AND SECONDARY SCHOOLS--Table of Contents




Sec.
69.1  Purpose.
69.2  Applicability and scope.
69.3  Definitions.
69.4  Policy.
69.5  Responsibilities.
69.6  Procedures.

    Authority: 10 U.S.C. 2164.

    Source: 61 FR 60563, Nov. 29, 1996, unless otherwise noted.



Sec. 69.1  Purpose.

    This part prescribes policies and procedures for the establishment 
and operation of elected School Boards for schools operated by the 
Department of Defense (DoD) under 10 U.S.C. 2164, 32 CFR part 345, and 
Public Law 92-463.



Sec. 69.2  Applicability and scope.

    This part applies to:
    (a) The Office of the Secretary of Defense (OSD), the Military 
Departments, the Coast Guard when operating as a service of the 
Department of the Navy or by agreement between DoD and the Department of 
Transportation, the Chairman of the Joint Chiefs of Staff, the Unified 
and Specified Combatant Commands, the Inspector General of the 
Department of Defense, the Uniformed Services University of the Health 
Sciences, the Defense Agencies, and the DoD Field Activities.
    (b) The schools (prekindergarten through grade 12) operated by the 
DoD under 10 U.S.C. 2164 and 32 CFR part 345 within the continental 
United States, Alaska, Hawaii, Puerto Rico, Wake Island, Guam, American 
Samoa, the Northern Mariana Islands, and the Virgin Islands, known as 
DoD DDESS Arrangements.
    (c) This part does not apply to elected school boards established 
under state or local law for DoD DDESS special arrangements.



Sec. 69.3  Definitions.

    (a) Arrangements. Actions taken by the Secretary of Defense to 
provide a free public education to dependent children under 10 U.S.C. 
2164 through DoD DDESS arrangements or DoD DDESS special arrangements:
    (1) DDESS arrangement. A school operated by the Department of 
Defense under 10 U.S.C. 2164 and 32 CFR 345 to provide a free public 
education for eligible children.
    (2) DDESS special arrangement. An agreement, under 10 U.S.C. 2164, 
between the Secretary of Defense, or designee, and a local public 
education agency whereby a school or a school system operated by the 
local public education agency provides educational services to eligible 
dependent children of U.S. military personnel and federally employed 
civilian personnel. Arrangements result in partial or total Federal 
funding to the local public education agency for the educational 
services provided.
    (b) Parent. The biological father or mother of a child when parental 
rights have not been legally terminated; a person who, by order of a 
court of competent jurisdiction, has been declared the father or mother 
of a child by adoption; the legal guardian of a child; or a person in 
whose household a child resides, provided that such person stands in 
loco parentis to that child and contributes at least one-half of the 
child's support.

[[Page 334]]



Sec. 69.4  Policy.

    (a) Each DoD DDESS arrangement shall have an elected school board, 
established and operated in accordance with this part and other 
pertinent guidance.
    (b) Because members of DoD DDESS elected school boards are not 
officers or employees of the United States appointed under the 
Appointments Clause of the United States Constitution (Art. II, Sec. 2, 
Cl. 2), they may not exercise discretionary governmental authority, such 
as the taking of personnel actions or the establishment of governmental 
policies. This part clarifies the role of school boards in the 
development and oversight of fiscal, personnel, and educational 
policies, procedures, and programs for DoD DDESS arrangements, subject 
to these constitutional limitations.
    (c) The DoD DDESS chain of command for matters relating to school 
arrangements operated under 10 U.S.C. 2164 and 32 CFR part 345 shall be 
from the Director, DoD DDESS, to the Superintendent of each school 
arrangement. The Superintendent will inform the school board of all 
matters affecting the operation of the local school arrangement. Direct 
liaison among the school board, the Director, and the Superintendent is 
authorized for all matters pertaining to the local school arrangement.



Sec. 69.5  Responsibilities.

    The Assistant Secretary of Defense for Force Management Policy (ASD 
(FMP)), under the Under Secretary of Defense for Personnel and 
Readiness, shall:
    (a) Make the final decision on all formal appeals to directives and 
other guidance submitted by the school board or Superintendent.
    (b) Ensure the Director, DoD DDESS shall:
    (1) Ensure the establishment of elected school boards in DoD DDESS 
arrangements.
    (2) Monitor compliance by the Superintendent and school boards with 
applicable statutory and regulatory requirements, and this part. In the 
event of suspected noncompliance, the Director, DoD DDESS, shall take 
appropriate action, which will include notification of the 
Superintendent and the school board president of the affected DoD DDESS 
arrangement.
    (3) Determine when the actions of a school board conflict with an 
applicable statute, regulation, or other guidance or when there is a 
conflict in the views of the school board and the Superintendent. When 
such conflicts occur, the Director, DoD DDESS, shall assist the 
Superintendent and the school board in resolving them or direct that 
such actions be discontinued. Such disapprovals must be in writing to 
the school board and the Superintendent concerned and shall state the 
specific supporting reason or reasons.
    (c) Ensure the school board for DoD DDESS arrangements shall:
    (1) Participate in the development and oversight of fiscal, 
personnel, and educational policies, procedures, and programs for the 
DoD DDESS arrangement concerned, consistent with this part.
    (2) Approve agendas and prepare minutes for school board meetings. A 
copy of the approved minutes of school board meetings shall be forwarded 
to the Director, DoD DDESS, within 10 working days after the date the 
minutes are approved.
    (3) Provide to the Director, DoD DDESS, names of applicants for a 
vacancy in the Superintendent's position after a recruitment has been 
accomplished. The school board shall submit to the Director, DoD DDESS, 
a list of all applicants based on its review of the applications and 
interviews (either in person or telephonically) of the applicants. The 
list of applicants will be accompanied by the recommended choice of the 
school board. The Director will select the Superintendent and will 
submit written notice with justification to the school board if the 
recommendation of the school board is not followed.
    (4) Prepare an annual written on-site review of the Superintendent's 
performance for consideration by the Director, DoD DDESS. The written 
review shall be based on critical elements recommended by the school 
board and Superintendent and approved by the Director, DoD DDESS. The 
school board's review will be an official attachment to the 
Superintendent's appraisal.

[[Page 335]]

    (5) Participate in the development of the school system's budget for 
submission to the Director, DoD DDESS, for his or her approval as 
endorsed by the school board; and participate in the oversight of the 
approved budget, in conjunction with the Superintendent, as appropriate 
for operation of the school arrangement.
    (6) Invite the Superintendent or designee to attend all school board 
meetings.
    (7) Provide counsel to the Superintendent on the operation of the 
school and the implementation of the approved budget.
    (8) Channel communications with school employees to the DoD DDESS 
Superintendent. Refer all applications, complaints, and other 
communications, oral or written, to the DoD DDESS Arrangement 
Superintendents.
    (9) Participate in the development of school policies, rules, and 
regulations, in conjunction with the Superintendent, and recommend which 
policies shall be reflected in the School Policy Manual. At a minimum, 
the Policy Manual, which shall be issued by the Superintendent, shall 
include following:
    (i) A statement of the school philosophy.
    (ii) The role and responsibilities of school administrative and 
educational personnel.
    (iii) Provisions for promulgation of an annual school calendar.
    (iv) Provisions on instructional services, including policies for 
development and adoption of curriculum and textbooks.
    (v) Regulations affecting students, including attendance, grading, 
promotion, retention, and graduation criteria, and the student code of 
rights, responsibilities, and conduct.
    (vi) School policy on community relations and noninstructional 
services, including maintenance and custodial services, food services, 
and student transportation.
    (vii) School policy and legal limits on financial operations, 
including accounting, disbursing, contracting, and procurement; 
personnel operations, including conditions of employment, and labor 
management regulations; and the processing of, and response to, 
complaints.
    (viii) Procedures providing for new school board member orientation.
    (ix) Any other matters determined by the school board and the 
superintendent to be necessary.
    (10) Under 10 U.S.C. 2164(b)(4)(B), prepare and submit formal 
appeals to directives and other guidance that in the view of the school 
board adversely impact the operation of the school system either through 
the operation and management of DoD DDESS or a specific DoD DDESS 
arrangement. Written formal appeals with justification and supporting 
documentation shall be submitted by the school board or Superintendent 
to ASD(FMP). The ASD(FMP) shall make the final decision on all formal 
appeals. The Director, Dod DDESS, will provide the appealing body 
written review of the findings relating to the merits of the appeal. 
Formal appeals will be handled expeditiously by all parties to minimize 
any adverse impact on the operation of the DoD DDESS system.
    (d) Ensure school board operating procedures are as follows:
    (1) The school board shall operate from a written agenda at all 
meetings. Matters not placed on the agenda before the start of the 
meeting, but approved by a majority of the school board present, may be 
considered at the ongoing meeting and added to the agenda at that time.
    (2) A majority of the total number of school board members 
authorized shall constitute a quorum.
    (3) School board meetings shall be conducted a minimum of 9 times a 
year. The school board President or designee will provide school board 
members timely notice of all meetings. All regularly scheduled school 
board meetings will be open to the public. Executive session meetings 
may be closed under 10 U.S.C. 2164(d)(6).
    (4) The school board shall not be bound in any way by any action or 
statement of an individual member or group of members of the board 
except when such action or statement is approved by a majority of the 
school board members during a school board meeting.

[[Page 336]]

    (5) School board members are eligible for reimbursement for official 
travel in accordance with the DoD Joint Travel Regulations and guidance 
issued by the Director, DoD DDESS.
    (6) School board members may be removed by the ASD (FMP) for 
dereliction of duty, malfeasance, or other grounds for cause shown. The 
school board concerned may recommend such removal with a two-thirds 
majority vote. Before a member may be removed, the member shall be 
afforded due process, to include written notification of the basis for 
the action, review of the evidence or documentation considered by the 
school board, and an opportunity to respond to the allegations.



Sec. 69.6  Procedures.

    (a) Composition of school board. (1) The school board shall 
recommend to the Director, DoD DDESS, the number of elected school board 
voting members, which shall be not fewer than 3 and no more than 9, 
depending upon local needs. The members of the school board shall select 
by majority vote of the total number of school board members authorized 
at the beginning of each official school board term, one member to act 
as President and another to act as Vice President. The President and 
Vice President shall each serve for 1 year. The President shall preside 
over school board meetings and provide leadership for related activities 
and functions. The Vice President shall serve in the absence of the 
President. If the position of President is vacated for any reason, the 
Vice President shall be the President until the next regularly scheduled 
school board election. The resulting vacancy in the position of the Vice 
President shall be filled by the majority vote of all members of the 
incumbent board.
    (2) The DoD DDESS Arrangement Superintendent, or designee, shall 
serve as a non-voting observer to all school board meetings. The 
Installation Commander, or designee, shall convey command concerns to 
the school board and the Superintendent and keep the school board and 
the Superintendent informed of changes and other matters within the host 
installation that affect school expenditures or operations.
    (3) School board members may not receive compensation for their 
service on the school board.
    (4) Members of the school board may not have any financial interest 
in any company or organization doing business with the school system. 
Waivers to this restriction may be granted on a case-by-case basis by 
the Director, DoD DDESS, in coordination with the Office of General 
Counsel of the Department of Defense.
    (b) Electorate of the school board. The electorate for each school 
board seat shall be composed of parents of the students attending the 
school. Each member of the electorate shall have one vote.
    (c) Election of school board members. (1) To be elected as a member 
of the school board, an individual must be a resident of the military 
installation in which the DoD DDESS arrangement is located, or in the 
case of candidates for the Antilles Consolidated School System School 
Board, be the parent of an eligible child currently enrolled in the 
school system. Personnel employed by a DoD DDESS arrangement may not 
serve as school board members.
    (2) The board shall determine the term of office for elected 
members, not to exceed 3 years, and the limit on the number of terms, if 
any. If the board fails to set these terms by the first day of the first 
full month of the school year, the terms will be set at 3 years, with a 
maximum of 2 consecutive terms.
    (3) When there is a sufficient number of school board vacancies that 
result in not having a quorum, which is defined as a majority of seats 
authorized, a special election shall be called by the DoD DDESS 
Arrangement Superintendent or designee. A special election is an 
election that is held between the regularly scheduled annual school 
board election. The nomination and election procedures for a special 
election shall be the same as those of regularly scheduled school board 
elections. Individuals elected by special election shall serve until the 
next regularly scheduled school board election. Vacancies may occur due 
to the resignation, death, removal for cause, transfer, or disenrollment 
of a school board

[[Page 337]]

member's child(ren) from the DoD DDESS arrangement.
    (4) The board shall determine a schedule for regular elections. 
Parents shall have adequate notice of the time and place of the 
election. The election shall be by secret ballot. All votes must be cast 
in person at the time and place of the election. The candidate(s) 
receiving the greatest number of votes shall be elected as school board 
member(s).
    (5) Each candidate for school board membership must be nominated in 
writing by at least one member of the electorate to be represented by 
the candidate. Votes may be cast at the time of election for write-in 
candidates who have not filed a nomination petition if the write-in 
candidates otherwise are qualified to serve in the positions sought.
    (6) The election process shall provide staggered terms for board 
members; e.g., on the last day of the last month of each year, the term 
for some board members will expire.
    (7) The DoD DDESS Superintendent, in consultation with the school 
board, shall be responsible for developing the plans for nominating 
school board members and conducting the school board election and the 
special election process. The DoD DDESS Superintendent shall announce 
election results within 7 working days of the election.



PART 70--DISCHARGE REVIEW BOARD (DRB) PROCEDURES AND STANDARDS--Table of Contents




Sec.
70.1  Reissuance and purpose.
70.2  Applicability.
70.3  Definitions.
70.4  Responsibilities.
70.5  Procedures.
70.6  Information requirements.
70.7  Effective date and implementation.
70.8  Discharge review procedures.
70.9  Discharge review standards.
70.10  Complaints concerning decisional documents and index entries.
70.11  DoD semiannual report.

    Authority: 10 U.S.C. 1553 and 38 U.S.C. 101 and 3103, as amended.

    Source: 47 FR 37785, Aug. 26, 1982, unless otherwise noted.



Sec. 70.1  Reissuance and purpose.

    This part is reissued and:
    (a) Establishes uniform policies, procedures, and standards for the 
review of discharges or dismissals under 10 U.S.C. 1553.
    (b) Provides guidelines for discharge review by application or on 
motion of a DRB, and the conduct of discharge reviews and standards to 
be applied in such reviews which are designed to ensure historically 
consistent uniformity in execution of this function, as required under 
Pub. L. 95-126.
    (c) Assigns responsibility for administering the program.
    (d) Makes provisions for public inspection, copying, and 
distribution of DRB documents through the Armed Forces Discharge Review/
Correction Board Reading Room.
    (e) Establishes procedures for the preparation of decisional 
documents and index entries.
    (f) Provides guidance for processing complaints concerning 
decisional documents and index entries.



Sec. 70.2  Applicability.

    The provisions of this part 70 apply to the Office of the Secretary 
of Defense (OSD) and the Military Departments. The terms, ``Military 
Services,'' and ``Armed Forces,'' as used herein, refer to the Army, 
Navy, Air Force and Marine Corps.



Sec. 70.3  Definitions.

    (a) Applicant. A former member of the Armed Forces who has been 
discharged or dismissed administratively in accordance with Military 
Department regulations or by sentence of a court-martial (other than a 
general court-martial) and under statutory regulatory provisions whose 
application is accepted by the DRB concerned or whose case is heard on 
the DRB's own motion. If the former member is deceased or incompetent, 
the term ``applicant'' includes the surviving spouse, next-of-kin, or 
legal representative who is acting on behalf of the former member. When 
the term ``applicant'' is used in Secs. 70.8 through 70.10, it includes 
the applicant's counsel or representative, except that the counsel or 
representative may not submit an application for review, waive the 
applicant's

[[Page 338]]

right to be present at a hearing, or terminate a review without 
providing the DRB an appropriate power of attorney or other written 
consent of the applicant.
    (b) Complainant. A former member of the Armed Forces (or the former 
member's counsel) who submits a complaint under Sec. 70.10 with respect 
to the decisional document issued in the former member's own case; or a 
former member of the Armed Forces (or the former member's counsel) who 
submits a complaint under Sec. 70.10 stating that correction of the 
decisional document will assist the former member in preparing for an 
administrative or judicial proceeding in which the former member's own 
discharge will be at issue.
    (c) Counsel or Representative. An individual or agency designated by 
the applicant who agrees to represent the applicant in a case before the 
DRB. It includes, but is not limited to: a lawyer who is a member of the 
bar of a Federal court or of the highest court of a State; an accredited 
representative designated by an organization recognized by the 
Administrator of Veterans Affairs; a representative from a State agency 
concerned with veterans affairs; and representatives from private 
organizations or local government agencies.
    (d) Discharge. A general term used in this Directive that includes 
dismissal and separation or release from active or inactive military 
status, and actions that accomplish a complete severance of all military 
status. This term also includes the assignment of a reason for such 
discharge and characterization of service (32 CFR part 41).
    (e) Discharge Review. The process by which the reason for 
separation, the procedures followed in accomplishing separation, and the 
characterization of service are evaluated. This includes determinations 
made under the provisions of 38 U.S.C. 3103(e)(2).
    (f) Discharge Review Board (DRB). An administrative board 
constituted by the Secretary of the Military Department concerned and 
vested with discretionary authority to review discharges and dismissals 
under the provisions of 10 U.S.C. 1553. It may be configured as one main 
element or two or more elements as designated by the Secretary 
concerned.
    (g) DRB Panel. An element of a DRB, consisting of five members, 
authorized by the Secretary concerned to review discharges and 
dismissals.
    (h) DRB Traveling or Regional Panel. A DRB panel that conducts 
discharge reviews in a location outside the National Capital Region 
(NCR).
    (i) Hearing. A review involving an appearance before the DRB by the 
applicant or on the applicant's behalf by a counsel or representative.
    (j) Hearing Examination. The process by which a designated officer 
of a DRB prepares a presentation for consideration by a DRB in 
accordance with regulations prescribed by the Secretary concerned.
    (k) National Capital Region (NCR). The District of Columbia; Prince 
Georges and Montgomery Counties in Maryland; Arlington, Fairfax, 
Loudoun, and Prince William Counties in Virginia; and all cities and 
towns included within the outer boundaries of the foregoing counties.
    (l) President, DRB. A person designated by the Secretary concerned 
and responsible for the supervision of the discharge review function and 
other duties as assigned.



Sec. 70.4  Responsibilities.

    (a) The Secretaries of the Military Departments have the authority 
for final decision and the responsibility for the operation for their 
respective discharge review programs under 10 U.S.C. 1553.
    (b) The Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) (ASD(MRA&L)) shall:
    (1) Resolve all issues concerning DRBs that cannot be resolved among 
the Military Departments.
    (2) Ensure uniformity among the Military Departments in the rights 
afforded applicants in discharge reviews.
    (3) Modify or supplement the enclosures to this part.
    (4) Maintain the index of decisions and provide for timely 
modification of index categories to reflect changes in discharge review 
policies, procedures, and standards issued by the OSD and the Military 
Departments.

[[Page 339]]

    (c) The Secretary of the Army, as the designated administrative 
focal point for DRB matters, shall:
    (1) Effect necessary coordination with other governmental agencies 
regarding continuing applicability of this part and resolve 
administrative procedures relating thereto.
    (2) Review suggested modifications to this part, including 
implementing documents; monitor the implementing documents of the 
Military Departments; resolve differences, when practicable; recommend 
specific changes; provide supporting rationale to the ASD(MRA&L) for 
decision; and include appropriate documentation through the Office of 
the ASD(MRA&L) and the OSD Federal Register liaison officer to effect 
publication in the Federal Register.
    (3) Maintain the DD Form 293, ``Application for Review of Discharge 
or Separation from the Armed Forces of the United States,'' and 
republish as necessary with appropriate coordination of the other 
Military Departments and the Office of Management and Budget.
    (4) Respond to all inquiries from private individuals, 
organizations, or public officials with regard to DRB matters. When the 
specific Military Service can be identified, refer such correspondence 
to the appropriate DRB for response or designate an appropriate activity 
to perform this task.
    (5) Provide overall guidance and supervision to the Armed Forces 
Discharge Review/Correction Board Reading Room with staff augmentation, 
as required, by the Departments of the Navy and Air Force.
    (6) Ensure that notice of the location, hours of operation, and 
similar types of information regarding the Reading Room is published in 
the Federal Register.



Sec. 70.5  Procedures.

    (a) Discharge review procedures are prescribed in Sec. 70.8.
    (b) Discharge Review Standards are prescribed in Sec. 70.9 and 
constitute the basic guidelines for the determination whether to grant 
or deny relief in a discharge review.
    (c) Complaint Procedures about decisional documents are prescribed 
in Sec. 70.10.



Sec. 70.6  Information requirements.

    (a) Reporting requirements. (1) The reporting requirement prescribed 
in Sec. 70.8(n) is assigned Report Control Symbol DD-M(SA)1489.
    (2) All reports must be consistent with DoD Directive 5000.11, 
``Data Elements and Data Codes Standardization Program,'' December 7, 
1964.
    (b) Use of standard data elements. The data requirements prescribed 
by this part shall be consistent with DoD 5000.12-M, ``DoD Manual for 
Standard Data Elements,'' December 1981. Any reference to a date should 
appear as (YYMMDD), while any name entry should appear as (Last name, 
first name, middle initial).



Sec. 70.7  Effective date and implementation.

    This part is effective immediately for the purpose of preparing 
implementing documents. DoD Directive 1332.28, March 29, 1978, is 
officially canceled, effective November 27, 1982. This part applies to 
all discharge review proceedings conducted on or after November 27, 
1982. Sec. 70.10 applies to all complaint proceedings conducted on or 
after September 28, 1982. Final action on complaints shall not be taken 
until September 28, 1982, unless earlier corrective action is requested 
expressly by the applicant (or the applicant's counsel) whose case is 
the subject of the decisional document. If earlier corrective action is 
requested, it shall be taken in accordance with Sec. 70.10.



Sec. 70.8  Discharge review procedures.

    (a) Application for review--(1) General. Applications shall be 
submitted to the appropriate DRB on DD Form 293, ``Application for 
Review of Discharge or Separation from the Armed Forces of the United 
States,'' with such other statements, affidavits, or documentation as 
desired. It is to the applicant's advantage to submit such documents 
with the application or within 60 days thereafter in order to permit a 
thorough screening of the case. The DD Form 293 is available at most DoD 
installations and regional offices of the

[[Page 340]]

Veterans Administration, or by writing to: DA Military Review Boards 
Agency, Attention: SFBA (Reading Room), Room 1E520, The Pentagon, 
Washington, DC 20310.
    (2) Timing. A motion or request for review must be made within 15 
years after the date of discharge or dismissal.
    (3) Applicant's responsibilities. An applicant may request a change 
in the character of or reason for discharge (or both).
    (i) Character of discharge. Block 7 of DD Form 293 provides an 
applicant an opportunity to request a specific change in character of 
discharge (for example, General Discharge to Honorable Discharge; Other 
than Honorable Discharge to General or Honorable Discharge). Only a 
person separated on or after 1 October 1982 while in an entry level 
status may request a change from Other than Honorable Discharge to Entry 
Level Separation. A request for review from an applicant who does not 
have an Honorable Discharge shall be treated as a request for a change 
to an Honorable Discharge unless the applicant requests a specific 
change to another character of discharge.
    (ii) Reason for discharge. Block 7 of DD Form 293 provides an 
applicant an opportunity to request a specific change in the reason for 
discharge. If an applicant does not request a specific change in the 
reason for discharge, the DRB shall presume that the request for review 
does not involve a request for change in the reason for discharge. Under 
its responsibility to examine the propriety and equity of an applicant's 
discharge, the DRB shall change the reason for discharge if such a 
change is warranted.
    (iii) The applicant must ensure that issues submitted to the DRB are 
consistent with the request for change in discharge set forth in block 7 
of the DD Form 293. If an ambiguity is created by a difference between 
an applicant's issue and the request in block 7, the DRB shall respond 
to the issue in the context of the action requested in block 7. In the 
case of a hearing, the DRB shall attempt to resolve the ambiguity under 
paragraph (a)(5) of this section.
    (4) Request for consideration of specific issues. An applicant may 
request the DRB to consider specific issues which, in the opinion of the 
applicant, form a basis for changing the character of or reason for 
discharge, or both. In addition to the guidance set forth in this 
section, applicants should consult the other sections in this part 
(particularly paragraphs (c), (d), and (e) of this section and 
Secs. 70.9 and 70.10 before submitting issues for consideration by the 
DRB.
    (i) Submission of issues on DD Form 293. Issues must be provided to 
the DRB on DD Form 293 before the DRB closes the review process for 
deliberation.
    (A) Issues must be clear and specific. An issue must be stated 
clearly and specifically in order to enable the DRB to understand the 
nature of the issue and its relationship to the applicant's discharge.
    (B) Separate listing of issues. Each issue submitted by an applicant 
should be listed separately. Submission of a separate statement for each 
issue provides the best means of ensuring that the full import of the 
issue is conveyed to the DRB.
    (C) Use of DD Form 293. DD Form 293 provides applicants with a 
standard format for submitting issues to the DRB, and its use:
    (1) Provides a means for an applicant to set forth clearly and 
specifically those matters that, in the opinion of the applicant, 
provide a basis for changing the discharge;
    (2) Assists the DRB in focusing on those matters considered to be 
important by an applicant;
    (3) Assists the DRB in distinguishing between a matter submitted by 
an applicant in the expectation that it will be treated as a decisional 
issue under paragraph (e) of this section, and those matters submitted 
simply as background or supporting materials;
    (4) Provides the applicant with greater rights in the event that the 
applicant later submits a complaint under Sec. 70.10(d)(1)(iii) 
concerning the decisional document;
    (5) Reduces the potential for disagreement as to the content of an 
applicant's issue.
    (D) Incorporation by reference. If the applicant makes an additional 
written submission, such as a brief, in support of the application, the 
applicant may

[[Page 341]]

incorporate by reference specific issues set forth in the written 
submission in accordance with the guidance on DD Form 293. The reference 
shall be specific enough for the DRB to identify clearly the matter 
being submitted as an issue. At a minimum, it shall identify the page, 
paragraph, and sentence incorporated. Because it is to the applicant's 
benefit to bring such issues to the DRB's attention as early as possible 
in the review, applicants who submit a brief are strongly urged to set 
forth all such issues as a separate item at the beginning of the brief. 
If it reasonably appears that the applicant inadvertently has failed 
expressly to incorporate an issue which the applicant clearly identifies 
as an issue to be addressed by the DRB, the DRB shall respond to such an 
issue under paragraphs (d) and (e) of this section.
    (E) Effective date of the new Form DD 293. With respect to 
applications received before November 27, 1982, the DRB shall consider 
issues clearly and specifically stated in accordance with the rules in 
effect at the time of submission. With respect to applications received 
on or after November 27, 1982, if the applicant submits an obsolete DD 
Form 293, the DRB shall accept the application, but shall provide the 
applicant with a copy of the new form and advise the applicant that it 
will only respond to issues submitted on the new form in accordance with 
this part.
    (ii) Relationship of issues to character of or reason for discharge. 
If the application applies to both character of and reason for 
discharge, the applicant is encouraged, but not required, to identify 
the issue as applying to the character of or reason for discharge (or 
both). Unless the issue is directed at the reason for discharge 
expressly or by necessary implication, the DRB will presume that it 
applies solely to the character of discharge.
    (iii) Relationship of issues to the standards for discharge review. 
The DRB reviews discharges on the basis of issues of propriety and 
equity. The standards used by the DRB are set forth in Sec. 70.9. The 
applicant is encouraged to review those standards before submitting any 
issue upon which the applicant believes a change in discharge should be 
based.
    (A) Issues concerning the equity of the discharge. An issue of 
equity is a matter that involves a determination whether a discharge 
should by changed under the equity standards of Sec. 70.9. This includes 
any issue, submitted by the applicant in accordance with paragraph 
(a)(4)(i) of this section, that is addressed to the discretionary 
authority of the DRB.
    (B) Issues concerning the propriety of a discharge. An issue of 
propriety is a matter that involves a determination whether a discharge 
should be changed under the propriety standards of Sec. 70.9. This 
includes an applicant's issue, submitted in accordance with paragraph 
(a)(4)(i) of this section, in which the applicant's position is that the 
discharge must be changed because of an error in the discharge 
pertaining to a regulation, statute, constitutional provision, or other 
source of law (including a matter that requires a determination whether, 
under the circumstances of the case, action by military authorities was 
arbitrary, capricious, or an abuse of discretion). Although a numerical 
reference to the regulation or other sources of law alleged to have been 
violated is not necessarily required, the context of the regulation or a 
description of the procedures alleged to have been violated normally 
must be set forth in order to inform the DRB adequately of the basis for 
the applicant's position.
    (C) The applicant's identification of an issue. The applicant is 
encouraged, but not required, to identify an issue as pertaining to the 
propriety or the equity to the discharge. This will assist the DRB in 
assessing the relationship of the issue to propriety or equity under 
paragraph (e)(1)(iii) of this section.
    (iv) Citation of matter from decisions. The primary function of the 
DRB involves the exercise of dicretion on a case-by-case basis. See 
Sec. 70.9(b)(3). Applicants are not required to cite prior decisions as 
the basis for a change in discharge. If the applicant wishes to bring 
the DRB's attention to a prior decision as background or illustrative 
material, the citation should be placed in a brief or other supporting 
documents. If, however, it is the applicant's intention to submit an 
issue that sets

[[Page 342]]

forth specific principles and facts from a specific cited decision, the 
following requirements apply with respect to applications received on or 
after November 27, 1982.
    (A) The issue must be set forth or expressly incorporated in the 
``Applicant's Issue'' portion of DD Form 293.
    (B) If an applicant's issue cites a prior decision (of the DRB, 
another Board, an agency, or a court), the applicant shall describe the 
specific principles and facts that are contained in the prior decision 
and explain the relevance of cited matter to the applicant's case.
    (C) To ensure timely consideration of principles cited from 
unpublished opinions (including decisions maintained by the Armed Forces 
Discharge Review Board/Corrective Board Reading Room), applicants must 
provide the DRB with copies of such decisions or of the relevant portion 
of the treatise, manual, or similar source in which the principles were 
discussed. At the applicant's request, such materials will be returned.
    (D) If the applicant fails to comply with the requirements in 
paragraphs (a)(4)(iv) (A), (B), and (C), the decisional document shall 
note the defect, and shall respond to the issue without regard to the 
citation.
    (5) Identification by the DRB of issues submitted by an applicant. 
The applicant's issues shall be identified in accordance with this 
section after a review of the materials noted under paragraph (c)(4), is 
made.
    (i) Issues on DD Form 293. The DRB shall consider all items 
submitted as issues by an applicant on DD Form 293 (or incorporated 
therein) in accordance with paragraph (a)(4)(i). With respect to 
applications submitted before November 27, 1982, the DRB shall consider 
all issues clearly and specifically stated in accordance with the rules 
in effect at the time of the submission.
    (ii) Amendment of issues. The DRB shall not request or instruct an 
applicant to amend or withdraw any matter submitted by the applicant. 
Any amendment or withdrawal of an issue by an applicant shall be 
confirmed in writing by the applicant. Nothing in this provision:
    (A) Limits the DRB's authority to question an applicant as to the 
meaning of such matter;
    (B) Precludes the DRB from developing decisional issues based upon 
such questions;
    (C) Prevents the applicant from amending or withdrawing such matter 
any time before the DRB closes the review process for deliberation; or
    (D) Prevents the DRB from presenting an applicant with a list of 
proposed decisional issues and written information concerning the right 
of the applicant to add to, amend, or withdraw the applicant's 
submission. The written information will state that the applicant's 
decision to take such action (or decline to do so) will not be used 
against the applicant in the consideration of the case.
    (iii) Additional issues identified during a hearing. The following 
additional procedure shall be used during a hearing in order to promote 
the DRB's understanding of an applicant's presentation. If, before 
closing the case for deliberation, the DRB believes that an applicant 
has presented an issue not listed on DD Form 293, the DRB may so inform 
the applicant, and the applicant may submit the issue in writing or add 
additional written issues at that time. This does not preclude the DRB 
from developing its own decisional issues.
    (6) Notification of possible bar to benefits. Written notification 
shall be made to each applicant whose record indicates a reason for 
discharge that bars receipt of benefits under 38 U.S.C. 3103(a). This 
notification will advise the applicant that separate action by the Board 
for Correction of Military or Naval Records or the Veterans 
Administration may confer eligibility for VA benefits. Regarding the bar 
to benefits based upon the 180 days consecutive unauthorized absence, 
the following applies:
    (i) Such absence must have been included as part of the basis for 
the applicant's discharge under other than honorable conditions.
    (ii) Such absence is computed without regard to the applicant's 
normal or adjusted expiration of term of service.
    (b) Conduct of reviews. (1) Members. As designated by the Secretary 
concerned, the DRB and its panels, if any, shall

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consist of five members. One member of the DRB shall be designated as 
the president and may serve as a presiding officer. Other officers may 
be designated to serve as presiding officers for DRB panels under 
regulations prescribed by the Secretary concerned.
    (2) Locations. Reviews by a DRB will be conducted in the NCR and 
such other locations as designated by the Secretary concerned.
    (3) Types of review. An applicant, upon request, is entitled to:
    (i) Record review. A review of the application, available service 
records, and additional documents (if any) submitted by the applicant.
    (ii) Hearing. A review involving an appearance before the DRB by the 
applicant or counsel or representative (or both).
    (4) Applicant's expenses. Unless otherwise specified by law or 
regulation, expenses incurred by the applicant, witnesses, counsel or 
representative will not be paid by the Department of Defense.
    (5) Withdrawal of application. An applicant shall be permitted to 
withdraw an application without prejudice at any time before the 
scheduled review.
    (6) Failure to appear at a hearing or respond to a scheduling 
notice. (i) Except as otherwise authorized by the Secretary concerned, 
further opportunity for a hearing shall not be made available in the 
following circumstances to an applicant who has requested a hearing:
    (A) When the applicant has been sent a letter containing the month 
and location of a proposed hearing and fails to make a timely response; 
or
    (B) When the applicant, after being notified by letter of the time 
and place of the hearing, fails to appear at the appointed time, either 
in person or by representative, without having made a prior, timely 
request for a continuation, postponement, or withdrawal.
    (ii) In such cases, the applicant shall be deemed to have waived the 
right to a hearing, and the DRB shall complete its review of the 
discharge. Further request for a hearing shall not be granted unless the 
applicant can demonstrate that the failure to appear or respond was due 
to circumstances beyond the applicant's control.
    (7) Continuance and postponements. (i) A continuance of a discharge 
review hearing may be authorized by the president of the DRB or 
presiding officer of the panel concerned, provided that such continuance 
is of reasonable duration and is essential to achieving a full and fair 
hearing. When a proposal for continuance is indefinite, the pending 
application shall be returned to the applicant with the option to 
resubmit when the case is fully ready for review.
    (ii) Postponements of scheduled reviews normally shall not be 
permitted other than for demonstrated good and sufficient reason set 
forth by the applicant in a timely manner, or for the convenience of the 
government.
    (8) Reconsideration. A discharge review shall not be subject to 
reconsideration except:
    (i) When the only previous consideration of the case was on the 
motion of the DRB;
    (ii) When the original discharge review did not involve a hearing 
and a hearing is now desired, and the provisions of paragraph (b)(6) of 
this section do not apply;
    (iii) When changes in discharge policy are announced after an 
earlier review of an applicant's discharge, and the new policy is made 
expressly retroactive;
    (iv) When the DRB determines that policies and procedures under 
which the applicant was discharged differ in material respects from 
policies and procedures currently applicable on a Service-wide basis to 
discharges of the type under consideration, provided that such changes 
in policies or procedures represent a substantial enhancement of the 
rights afforded a respondent in such proceedings;
    (v) When an individual is to be represented by a counsel or 
representative, and was not so represented in any previous consideration 
of the case by the DRB;
    (vi) When the case was not previously considered under uniform 
standards published pursuant to Pub. L. 95-126 and such application is 
made within 15 years after the date of discharge; or
    (vii) On the basis of presentation of new, substantial, relevant 
evidence not available to the applicant at the time of the original 
review. The decision

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whether evidence offered by an applicant in support of a request for 
reconsideration is in fact new, substantial, relevant, and was not 
available to the applicant at the time of the original review will be 
based on a comparison of such evidence with the evidence considered in 
the previous discharge review. If this comparison shows that the 
evidence submitted would have had a probable effect on matters 
concerning the propriety or equity of the discharge, the request for 
reconsideration shall be granted.
    (9) Availability of records and documents. (i) Before applying for 
discharge review, potential applicants or their designated 
representatives may obtain copies of their military personnel records by 
submitting a General Services Administration Standard Form 180, 
``Request Pertaining to Military Records,'' to the National Personnel 
Records Center (NPRC), 9700 Page Boulevard, St. Louis, MO 62132. Once 
the application for discharge review (DD Form 293) is submitted, an 
applicant's military records are forwarded to the DRBs where they cannot 
be reproduced. Submission of a request for an applicant's military 
records, including a request under the Freedom of Information Act (32 
CFR part 286) or Privacy Act (32 CFR part 286a) after the DD Form 293 
has been submitted, shall result automatically in the temporary 
suspension of processing of the application for discharge review until 
the requested records are sent to an appropriate location for copying, 
are copied, and are returned to the headquarters of the DRB. Processing 
of the application shall then be resumed at whatever stage of the 
discharge review process is practicable. Applicants are encouraged to 
submit any request for their military records before applying for 
discharge review rather than after submitting DD Form 293, to avoid 
delays in processing of applications and scheduling of reviews. 
Applicants and their counsel also may examine their military personnel 
records at the site of their scheduled review before the hearing. DRBs 
shall notify applicants of the dates the records are available for 
examination in their standard scheduling information.
    (ii) If the DRB is not authorized to provide copies of documents 
that are under the cognizance of another government department, office, 
or activity, applications for such information must be made by the 
applicant to the cognizant authority. The DRB shall advise the applicant 
of the mailing address of the government department, office, or activity 
to which the request should be submitted.
    (iii) If the official records relevant to the discharge review are 
not available at the agency having custody of the records, the applicant 
shall be so notified and requested to provide such information and 
documents as may be desired in support of the request for discharge 
review. A period of not less than 30 days shall be allowed for such 
documents to be submitted. At the expiration of this period, the review 
may be conducted with information available to the DRB.
    (iv) A DRB may take steps to obtain additional evidence that is 
relevant to the discharge under consideration beyond that found in the 
official military records or submitted by the applicant, if a review of 
available evidence suggests that it would be incomplete without the 
additional information, or when the applicant presents testimony or 
documents that require additional information to evaluate properly. Such 
information shall be made available to the applicant, upon request, with 
appropriate modifications regarding classified material.
    (A) In any case heard on request of an applicant, the DRB shall 
provide the applicant and counsel or representative, if any, at a 
reasonable time before initiating the decision process, a notice of the 
availability of all regulations and documents to be considered in the 
discharge review, except for documents in the official personnel or 
medical records and any documents submitted by the applicant. The DRB 
shall also notify the applicant or counsel or representative:
    (1) Of the right to examine such documents or to be provided with 
copies of the documents upon request;
    (2) Of the date by which such requests must be received; and

[[Page 345]]

    (3) Of the opportunity to respond within a reasonable period of time 
to be set by the DRB.
    (B) When necessary to acquaint the applicant with the substance of a 
classified document, the classifying authority, on the request of the 
DRB, shall prepare a summary of or an extract from the document, 
deleting all references to sources of information and other matters, the 
disclosure of which, in the opinion of the classifying authority, would 
be detrimental to the national security interests of the United States. 
Should preparation of such summary be deemed impracticable by the 
classifying authority, information from the classified sources shall not 
be considered by the DRB in its review of the case.
    (v) Regulations of a Military Department may be obtained at many 
installations under the jurisdiction of the Military Department 
concerned or by writing to the following address: DA Military Review 
Boards Agency, Attention: SFBA (Reading Room), room 1E520, Washington, 
DC 20310.
    (10) Recorder/Secretary or Assistant. Such a person shall be 
designated to assist in the functioning of each DRB in accordance with 
the procedures prescribed by the Secretary of the Military Department 
concerned.
    (11) Hearings. Hearings (including hearing examinations) that are 
conducted shall recognize the rights of the individual to privacy. 
Accordingly, presence at hearings of individuals other than those 
required shall be limited to persons authorized by the Secretary 
concerned or expressly requested by the applicant, subject to reasonable 
limitations based upon available space. If, in the opinion of the 
presiding officer, the presence of other individuals could be 
prejudicial to the interests of the applicant or the government, 
hearings may be held in closed session.
    (12) Evidence and testimony. (i) The DRB may consider any evidence 
obtained in accordance with this part.
    (ii) Formal rules of evidence shall not be applied in DRB 
proceedings. The presiding officer shall rule on matters of procedure 
and shall ensure that reasonable bounds of relevancy and materiality are 
maintained in the taking of evidence and presentation of witnesses.
    (iii) Applicants undergoing hearings shall be permitted to make 
sworn or unsworn statements, if they so desire, or to introduce 
witnesses, documents, or other information on their behalf, at no 
expense to the Department of Defense.
    (iv) Applicants may also make oral or written arguments personally 
or through counsel or representatives.
    (v) Applicants who present sworn or unsworn statements and witnesses 
may be questioned by the DRB. All testimony shall be taken under oath or 
affirmation unless the applicant specifically requests to make an 
unsworn statement.
    (vi) There is a presumption of regularity in the conduct of 
governmental affairs. This presumption can be applied in any review 
unless there is substantial credible evidence to rebut the presumption.
    (c) Decision process. (1) The DRB or the DRB panel, as appropriate, 
shall meet in plenary session to review discharges and exercise its 
discretion on a case-by-case basis in applying the standards set forth 
in Sec. 70.9.
    (2) The presiding officer is responsible for the conduct of the 
discharge review. The presiding officer shall convene, recess, and 
adjourn the DRB panel as appropriate and shall maintain an atmosphere of 
dignity and decorum at all times.
    (3) Each DRB member shall act under oath or affirmation requiring 
careful, objective consideration of the application. DRB members are 
responsible for eliciting all facts necessary for a full and fair 
hearing. They shall consider all information presented to them by the 
applicant. In addition, they shall consider available Military Service 
and health records, together with other records that may be in the files 
of the Military Department concerned and relevant to the issues before 
the DRB, and any other evidence obtained in accordance with this part.
    (4) The DRB shall identify and address issues after a review of the 
following material obtained and presented in accordance with this part 
and the implementing instructions of the DRB: Available official 
records, documentary

[[Page 346]]

evidence submitted by or on behalf of an applicant, presentation of a 
hearing examination, testimony by or on behalf of an applicant, oral or 
written arguments presented by or on behalf of an applicant, and any 
other relevant evidence.
    (5) If an applicant who has requested a hearing does not respond to 
a notification letter or does not appear for a scheduled hearing, the 
DRB may complete the review on the basis of material previously 
submitted.
    (6) Application of standards. (i) When a DRB determines that an 
applicant's discharge was improper (Sec. 70.9(b)), the DRB will 
determine which reason for discharge should have been assigned based 
upon the facts and circumstances before the discharge authority, 
including the Service regulations governing reasons for discharge at the 
time the applicant was discharged. Unless it is also determined that the 
discharge was inequitable (Sec. 70.9(c)), the provisions as to 
characterization in the regulation under which the applicant should have 
been discharged will be considered in determining whether further relief 
is warranted.
    (ii) When the DRB determines that an applicant's discharge was 
inequitable (see Sec. 70.9(c)), any change will be based on the 
evaluation of the applicant's overall record of service and relevant 
regulations of the Military Service of which the applicant was a member.
    (7) Voting shall be conducted in closed session, a majority of the 
five members' votes constituting the DRB decision. Voting procedures 
shall be prescribed by the Secretary of the Military Department 
concerned.
    (8) Details of closed session deliberations of a DRB are privileged 
information and shall not be divulged.
    (9) There is no requirement for a statement of minority views in the 
event of a split vote. The minority, however, may submit a brief 
statement of its views under procedures established by the Secretary 
concerned.
    (10) DRBs may request advisory opinions from staff officers of their 
Military Departments. These opinions are advisory in nature and are not 
binding on the DRB in its decision-making process.
    (11) The preliminary determinations required by 38 U.S.C. 3103(e) 
shall be made upon majority vote of the DRB concerned on an expedited 
basis. Such determination shall be based upon the standards set forth in 
Sec. 70.9 of this part.
    (12) The DRB shall: (i) Address items submitted as issues by the 
applicant under paragraph (d) of this section;
    (ii) Address decisional issues under paragraph (e) of this section; 
and
    (iii) Prepare a decisional document in accordance with paragraph (h) 
of this section.
    (d) Response to items submitted as issues by the applicant--(1) 
General guidance. (i) If an issue submitted by an applicant contains two 
or more clearly separate issues, the DRB should respond to each issue 
under the guidance of this paragraph as if it had been set forth 
separately by the applicant.
    (ii) If an applicant uses a ``building block'' approach (that is, 
setting forth a series of conclusions on issues that lead to a single 
conclusion purportedly warranting a change in the applicant's 
discharge), normally there should be a separate response to each issue.
    (iii) Nothing in this paragraph precludes the DRB from making a 
single response to multiple issues when such action would enhance the 
clarity of the decisional document, but such response must reflect an 
adequate response to each separate issue.
    (2) Decisional issues. An item submitted as an issue by an applicant 
in accordance with this part shall be addressed as a decisional issue 
under paragraph (e), in the following circumstances:
    (i) When the DRB decides that a change in discharge should be 
granted, and the DRB bases its decision in whole or in part on the 
applicant's issue; or
    (ii) When the DRB does not provide the applicant with the full 
change in discharge requested, and the decision is based in whole or in 
part on the DRB's disagreement on the merits with an issue submitted by 
the applicant.
    (3) Response to items not addressed as decisional issues. (i) If the 
applicant receives the full change in discharge requested (or a more 
favorable change), that fact shall be noted and the basis shall be 
addressed as a decisional issue.

[[Page 347]]

No further response is required to other issues submitted by the 
applicant.
    (ii) If the applicant does not receive the full change in discharge 
requested with respect to either the character of or reason for 
discharge (or both), the DRB shall address the items submitted by the 
applicant under paragraph (e) of this section (decisional issues) unless 
one of the following responses is applicable:
    (A) Duplicate issues. The DRB may state that there is a full 
response to the issue submitted by the applicant under a specified 
decisional issue. This response may be used only when one issue clearly 
duplicates another or the issue clearly requires discussion in 
conjunction with another issue.
    (B) Citations without principles and facts. The DRB may state that 
the applicant's issue, which consists of a citation to a decision 
without setting forth any principles and facts from the decision that 
the applicant states are relevant to the applicant's case, does not 
comply with the requirements of paragraph (a)(4)(iv)(A).
    (C) Unclear issues. The DRB may state that it cannot respond to an 
item submitted by the applicant as an issue because the meaning of the 
item is unclear. An issue is unclear if it cannot be understood by a 
reasonable person familiar with the discharge review process after a 
review of the materials considered under paragraph (c)(4) of this 
section.
    (D) Nonspecific issues. The DRB may state that it cannot respond to 
an item submitted by the applicant as an issue because it is not 
specific. A submission is considered not specific if a reasonable person 
familiar with the discharge review process after a review of the 
materials considered under paragraph (c)(4) of this section, cannot 
determine the relationship between the applicant's submission and the 
particular circumstances of the case. This response may be used only if 
the submission is expressed in such general terms that no other response 
is applicable. For example, if the DRB disagrees with the applicant as 
to the relevance of matters set forth in the submission, the DRB 
normally will set forth the nature of the disagreement under the 
guidance in paragraph (e) of this section, with respect to decisional 
issues, or it will reject the applicant's position on the basis of 
paragraphs (d)(3)(ii)(A) or (d)(3)(ii)(B) of this section. If the 
applicant's submission is so general that none of those provisions is 
applicable, then the DRB may state that it cannot respond because the 
item is not specific.
    (e) Decisional issues. (1) General. Under the guidance in this 
section, the decisional document shall discuss the issues that provide a 
basis for the decision whether there should be a change in the character 
of or reason for discharge. In order to enhance clarity, the DRB should 
not address matters other than issues relied upon in the decision or 
raised by the applicant.
    (i) Partial change. When the decision changes a discharge, but does 
not provide the applicant with the full change in discharge requested, 
the decisional document shall address both the issues upon which change 
is granted and the issues upon which the DRB denies the full change 
requested.
    (ii) Relationship of issue to character of or reason for discharge. 
Generally, the decisional document should specify whether a decisional 
issue applies to the character of or reason for discharge (or both), but 
it is not required to do so.
    (iii) Relationship of an issue to propriety or equity. (A) If an 
applicant identifies an issue as pertaining to both propriety and 
equity, the DRB will consider it under both standards.
    (B) If an applicant identifies an issue as pertaining to the 
propriety of the discharge (for example, by citing a propriety standard 
or otherwise claiming that a change in discharge is required as a matter 
of law), the DRB shall consider the issue solely as a matter of 
propriety. Except as provided in paragraph (e)(1)(iii)(D) of this 
section, the DRB is not required to consider such an issue under the 
equity standards.
    (C) If the applicant's issue contends that the DRB is required as a 
matter of law to follow a prior decision by setting forth an issue of 
propriety from the prior decision and describing its relationship to the 
applicant's case, the

[[Page 348]]

issue shall be considered under the propriety standards and addressed 
under paragraph (e)(2) or (e)(3) of this section.
    (D) If the applicant's issue sets forth principles of equity 
contained in a prior DRB decision, describes the relationship to the 
applicant's case, and contends that the DRB is required as a matter of 
law to follow the prior case, the decisional document shall note that 
the DRB is not bound by its discretionary decisions in prior cases under 
the standards in Sec. 70.9. However, the principles cited by the 
applicant, and the description of the relationship of the principles to 
the applicant's case, shall be considered under the equity standards and 
addressed under paragraph (e)(5) or (e)(6) of this section.
    (E) If the applicant's issue cannot be identified as a matter of 
propriety or equity, the DRB shall address it as an issue of equity.
    (2) Change of discharge: issues of propriety. If a change in the 
discharge is warranted under the propriety standards in Sec. 70.9 the 
decisional document shall state that conclusion and list the errors of 
expressly retroactive changes in policy that provide a basis for the 
conclusion. The decisional document shall cite the facts in the record 
that demonstrate the relevance of the error or change in policy to the 
applicant's case. If the change in discharge does not constitute the 
full change requested by the applicant, the reasons for not granting the 
full change shall be addressed under the guidance in paragraph (e)((3) 
or (e)(6) of this section.
    (3) Denial of the full change requested: issues of propriety. (i) If 
the decision rejects the applicant's position on an issue of propriety, 
or if it is otherwise decided on the basis of an issue of propriety that 
the full change in discharge requested by the applicant is not 
warranted, the decisional document shall note that conclusion.
    (ii) The decisional document shall list reasons for its conclusion 
on each issue of propriety under the following guidance:
    (A) If a reason is based in whole or in part upon a regulation, 
statute, constitutional provision, judicial determination, or other 
source of law, the DRB shall cite the pertinent source of law and the 
facts in the record that demonstrate the relevance of the source of law 
to the particular circumstances in the case.
    (B) If a reason is based in whole or in part on a determination as 
to the occurrence or nonoccurrence of an event or circumstance, 
including a factor required by applicable Service regulations to be 
considered for determination of the character of and reason for the 
applicant's discharge, the DRB shall make a finding of fact for each 
such event or circumstance.
    (1) For each such finding, the decisional document shall list the 
specific source of the information relied upon. This may include the 
presumption of regularity in appropriate cases. If the information is 
listed in the service record section of the decisional document, a 
citation is not required.
    (2) If a finding of fact is made after consideration of 
contradictory evidence in the record (including information cited by the 
applicant or otherwise identified by members of the DRB), the decisional 
document shall set forth the conflicting evidence and explain why the 
information relied upon was more persuasive than the information that 
was rejected. If the presumption of regularity is cited as the basis for 
rejecting such information, the decisional document shall set forth the 
basis for relying on the presumption of regularity and explain why the 
contradictory evidence was insufficient to overcome the presumption. In 
an appropriate case, the explanation as to why the contradictory 
evidence was insufficient to overcome the presumption of regularity may 
consist of a statement that the applicant failed to provide sufficient 
corroborating evidence, or that the DRB did not find the applicant's 
testimony to be sufficiently credible to overcome the presumption.
    (C) If the DRB disagrees with the position of the applicant on an 
issue of propriety, the following guidance applies in addition to the 
guidance in paragraphs (e)(3)(ii) (A) and (B) of this section:
    (1) The DRB may reject the applicant's position by explaining why it 
disagrees with the principles set forth in the applicant's issue 
(including principles derived from cases cited by the

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applicant in accordance with paragraph (e)(4)(iv) of this section).
    (2) The DRB may reject the applicant's position by explaining why 
the principles set forth in the applicant's issue (including principles 
derived from cases cited by the applicant in accordance with paragraph 
(a)(4)(iv) of this section) are not relevant to the applicant's case.
    (3) The DRB may reject an applicant's position by stating that the 
applicant's issue of propriety is not a matter upon which the DRB grants 
a change in discharge, and by providing an explanation for this 
position. When the applicant indicates that the issue is to be 
considered in conjunction with one or more other specified issues, the 
explanation will address all such specified issues.
    (4) The DRB may reject the applicant's position on the grounds that 
other specified factors in the case preclude granting relief, regardless 
of whether the DRB agreed with the applicant's position.
    (5) If the applicant takes the position that the discharge must be 
changed because of an alleged error in a record associated with the 
discharge, and the record has not been corrected by the organization 
with primary responsibility for corrective action, the DRB may respond 
that it will presume the validity of the record in the absence of such 
corrective action. If the organization empowered to correct the record 
is within the Department of Defense, the DRB should provide the 
applicant with a brief description of the procedures for requesting 
correction of the record. If the DRB on its own motion cites this issue 
as a decisional issue on the basis of equity, it shall address the issue 
under paragraph (d)(5) or (d)(6) of this section.
    (6) When an applicant's issue contains a general allegation that a 
certain course of action violated his or her constitutional rights, the 
DRB may respond in appropriate cases by noting that the action was 
consistent with statutory or regulatory authority, and by citing the 
presumption of constitutionality that attaches to statutes and 
regulations. If, on the other hand, the applicant makes a specific 
challenge to the constitutionality of the action by challenging the 
application of a statute or regulation in a particular set of 
circumstances, it is not sufficient to respond solely by citing the 
presumption of constitutionality of the statute or regulation when the 
applicant is not challenging the constitutionality of the statute or 
regulation. Instead, the response must address the specific 
circumstances of the case.
    (4) Denial of the full change in discharge requested when propriety 
is not at issue. If the applicant has not submitted an issue of 
propriety and the DRB has not otherwise relied upon an issue of 
propriety to change the discharge, the decisional document shall contain 
a statement to that effect. The DRB is not required to provide any 
further discussion as to the propriety of the discharge.
    (5) Change of discharge: issues of equity. If the DRB concludes that 
a change in the discharge is warranted under the equity standards in 
Sec. 70.9 the decisional document shall list each issue of equity upon 
which this conclusion is based. The DRB shall cite the facts in the 
record that demonstrate the relevance of the issue to the applicant's 
case. If the change in discharge does not constitute the full change 
requested by the applicant, the reasons for not giving the full change 
requested shall be discussed under the guidance in paragraph (e)(6) of 
this section.
    (6) Denial of the full change in discharge requested: issues of 
equity. (i) If the DRB rejects the applicant's position on an issue of 
equity, or if the decision otherwise provides less than the full change 
in discharge requested by the applicant, the decisional document shall 
note that conclusion.
    (ii) The DRB shall list reasons for its conclusion on each issue of 
equity under the following guidance:
    (A) If a reason is based in whole or in part upon a regulation, 
statute, constitutional provision, judicial determination, or other 
source of law, the DRB shall cite the pertinent source of law and the 
facts in the record that demonstrate the relevance of the source of law 
to the exercise of discretion on the issue of equity in the applicant's 
case.

[[Page 350]]

    (B) If a reason is based in whole or in part on a determination as 
to the occurrence or nonoccurrence of an event or circumstance, 
including a factor required by applicable Service regulations to be 
considered for determination of the character of and reason for the 
applicant's discharge, the DRB shall make a finding of fact for each 
such event or circumstance.
    (1) For each such finding, the decisional document shall list the 
specific source of the information relied upon. This may include the 
presumption of regularity in appropriate cases. If the information is 
listed in the service record section of the decisional document, a 
citation is not required.
    (2) If a finding of fact is made after consideration of 
contradictory evidence in the record (including information cited by the 
applicant or otherwise identified by members of the DRB), the decisional 
document shall set forth the conflicting evidence and explain why the 
information relied upon was more persuasive than the information that 
was rejected. If the presumption of regularity is cited as the basis for 
rejecting such information, the decisional document shall set forth the 
basis for relying on the presumption of regularity and explain why the 
contradictory evidence was insufficient to overcome the presumption. In 
an appropriate case, the explanation as to why the contradictory 
evidence was insufficient to overcome the presumption of regularity may 
consist of a statement that the applicant failed to provide sufficient 
corroborating evidence, or that the DRB did not find the applicant's 
testimony to be sufficiently credible to overcome the presumption.
    (C) If the DRB disagrees with the position of the applicant on an 
issue of equity, the following guidance applies in addition to the 
guidance in paragraphs (e)(6)(ii) (A) and (B) of this section:
    (1) The DRB may reject the applicant's position by explaining why it 
disagrees with the principles set forth in the applicant's issue 
(including principles derived from cases cited by the applicant in 
accordance with paragraph (a)(4)(iv) of this section).
    (2) The DRB may reject the applicant's position by explaining why 
the principles set forth in the applicant's issue (including principles 
derived from cases cited by the applicant) are not relevant to the 
applicant's case.
    (3) The DRB may reject an applicant's position by explaining why the 
applicant's issue is not a matter upon which the DRB grants a change in 
discharge as a matter of equity. When the applicant indicates that the 
issue is to be considered in conjunction with other specified issues, 
the explanation will address all such specified issues.
    (4) The DRB may reject the applicant's position on the grounds that 
other specified factors in the case preclude granting relief, regardless 
of whether the DRB agreed with the applicant's position.
    (5) If the applicant takes the position that the discharge should be 
changed as a matter of equity because of an alleged error in a record 
associated with the discharge, and the record has not been corrected by 
the organization with primary responsibility for corrective action, the 
DRB may respond that it will presume the validity of the record in the 
absence of such corrective action. However, the DRB will consider 
whether it should exercise its equitable powers to change the discharge 
on the basis of the alleged error. If it declines to do so, it shall 
explain why the applicant's position did not provide a sufficient basis 
for the change in the discharge requested by the applicant.
    (D) When the DRB concludes that aggravating factors outweigh 
mitigating factors, the DRB must set forth reasons such as the 
seriousness of the offense, specific circumstances surrounding the 
offense, number of offenses, lack of mitigating circumstances, or 
similar factors. The DRB is not required, however, to explain why it 
relied on any such factors unless the applicability or weight of such a 
factor is expressly raised as an issue by the applicant.
    (E) If the applicant has not submitted any issues and the DRB has 
not otherwise relied upon an issue of equity for a change in discharge, 
the decisional document shall contain a statement to that effect, and 
shall note that the major factors upon which the discharge was based are 
set forth in the

[[Page 351]]

service record portion of the decisional document.
    (f) The recommendation of the DRB President--(1) General. The 
president of the DRB may forward cases for consideration by the 
Secretarial Reviewing Authority (SRA) under rules established by the 
Secretary concerned. There is no requirement that the President submit a 
recommendation when a case is forwarded to the SRA. If the president 
makes a recommendation with respect to the character of or reason for 
discharge, however, the recommendation shall be prepared under the 
guidance in paragraph (f)(2) of this section.
    (2) Format for recommendation. If a recommendation is provided, it 
shall contain the president's views whether there should be a change in 
the character of or reason for discharge (or both). If the president 
recommends such a change, the particular change to be made shall be 
specified. The recommendation shall set forth the president's position 
on decisional issues and issues submitted by the applicant under the 
following guidance:
    (i) Adoption of the DRB's decisional document. The recommendation 
may state that the president has adopted the decisional document 
prepared by the majority. The president shall ensure that the decisional 
document meets the requirements of this section.
    (ii) Adoption of the specific statements from the majority. If the 
President adopts the views of the majority only in part, the 
recommendation shall cite the specific matter adopted from the majority. 
If the president modifies a statement submitted by the majority, the 
recommendation shall set forth the modification.
    (iii) Response to issues not included in matter adopted from the 
majority. The recommendation shall set forth the following if not 
adopted in whole or in part from the majority:
    (A) The issues on which the president's recommendation is based. 
Each such decisional issue shall be addressed by the president under 
paragraph (e) of this section,
    (B) The president's response to items submitted as issues by the 
applicant under paragraph (d) of this section.
    (C) Reasons for rejecting the conclusions of the majority with 
respect to decisional issues which, if resolved in the applicant's 
favor, would have resulted in greater relief for the applicant than that 
afforded by the president's recommendation. Suh issues shall be 
addressed under the principles in paragraph (e) of this section.
    (g) Secretarial reviewing authority (SRA)--(1) Review by the SRA. 
The Secretarial Reviewing Authority (SRA) is the Secretary concerned or 
the official to whom Secretary's discharge review authority has been 
delegated.
    (i) The SRA may review the following types of cases before issuance 
of the final notification of a decision:
    (A) Any specific case in which the SRA has an interest.
    (B) Any specific case that the president of the DRB believes is of 
significant interest to the SRA.
    (ii) Cases reviewed by the SRA shall be considered under the 
standards set forth in Sec. 70.9.
    (2) Processing the decisional document. (i) The decisional document 
shall be transmitted by the DRB president under paragraph (e) of this 
section.
    (ii) The following guidance applies to cases that have been 
forwarded to the SRA except for cases reviewed on the DRB's own motion 
without the participation of the applicant or the applicant's counsel:
    (A) The applicant and counsel or representative, if any, shall be 
provided with a copy of the proposed decisional document, including the 
DRB president's recommendation to the SRA, if any. Classified 
information shall be summarized.
    (B) The applicant shall be provided with a reasonable period of 
time, but not less than 25 days, to submit to the SRA a rebuttal. An 
issue in rebuttal consists of a clear and specific statement by the 
applicant in support of or in opposition to the statements of the DRB or 
DRB president on decisional issues and other clear and specific issues 
that were submitted by the applicant in accordance with paragraph 
(a)(4)(i) of this section. The rebuttal shall be based solely on matters 
in the record before when the DRB closed the case for deliberation or in 
the president's recommendation.

[[Page 352]]

    (3) Review of the decisional document. If corrections in the 
decisional document are required, the decisional document shall be 
returned to the DRB for corrective action. The corrected decisional 
document shall be sent to the applicant (and counsel, if any), but a 
further opportunity for rebuttal is not required unless the correction 
produces a different result or includes a substantial change in the 
discussion by the DRB (or DRB president) of the issues raised by the 
majority or the applicant.
    (4) The Addendum of the SRA. The decision of the SRA shall be in 
writing and shall be appended as an addendum to the decisional document 
under the guidance in this subsection.
    (i) The SRA's decision. The addendum shall set forth the SRA's 
decision whether there will be a change in the character of or reason 
for discharge (or both); if the SRA concludes that a change is 
warranted, the particular change to be made shall be specified. If the 
SRA adopts the decision recommended by the DRB or the DRB president, the 
decisional document shall contain a reference to the matter adopted.
    (ii) Discussion of issues. In support of the SRA's decision, the 
addendum shall set forth the SRA's position on decisional issues, items 
submitted as issues by an applicant in accordance with paragraph 
(a)(4)(i) of this section, and issues raised by the DRB and the DRB 
president in accordance with the following guidance:
    (A) Adoption of the DRB president's recommendation. The addendum may 
state that the SRA has adopted the DRB president's recommendation.
    (B) Adoption of the DRB's proposed decisional document. The addendum 
may state that the SRA has adopted the proposed decisional document 
prepared by the DRB.
    (C) Adoption of specific statements from the majority or the DRB 
president. If the SRA adopts the views of the DRB or the DRB president 
only in part, the addendum shall cite the specific statements adopted. 
If the SRA modifies a statement submitted by the DRB or the DRB 
president, the addendum shall set forth the modification.
    (D) Response to issues not included in matter adopted from the DRB 
or the DRB president. The addendum shall set forth the following if not 
adopted in whole or in part from the DRB or the DRB president:
    (1) A list of the issues on which the SRA's decision is based. Each 
such decisional issue shall be addressed by the SRA under paragraph (e) 
of this section. This includes reasons for rejecting the conclusion of 
the DRB or the DRB president with respect to decisional issues which, if 
resolved in the applicant's favor, would have resulted in change to the 
discharge more favorable to the applicant than that afforded by the 
SRA's decision. Such issues shall be addressed under the principles in 
paragraph (e) of this section.
    (2) The SRA's response to items submitted as issues by the applicant 
under paragraph (d) of this section.
    (iii) Response to the rebuttal. (A) If the SRA grants the full 
change in discharge requested by the applicant (or a more favorable 
change), that fact shall be noted, the decisional issues shall be 
addressed under paragraph (e) of this section, and no further response 
to the rebuttal is required.
    (B) If the SRA does not grant the full change in discharge requested 
by the applicant (or a more favorable change), the addendum shall list 
each issue in rebuttal submitted by an applicant in accordance with this 
section, and shall set forth the response of the SRA under the following 
guidance:
    (1) If the SRA rejects an issue in rebuttal, the SRA may respond in 
accordance with the principles in paragraph (e) of this section.
    (2) If the matter adopted by the SRA provides a basis for the SRA's 
rejection of the rebuttal material, the SRA may note that fact and cite 
the specific matter adopted that responds to the issue in rebuttal.
    (3) If the matter submitted by the applicant does not meet the 
requirements for rebuttal material in paragraph (b)(2)(ii)(B) of this 
section.
    (iv) Index entries. Appropriate index entries shall be prepared for 
the SRA's actions for matters that are not adopted from the DRB's 
proposed decisional document.

[[Page 353]]

    (h) The decisional document. A decisional document shall be prepared 
for each review. At a minimum, this document shall contain:
    (1) The circumstances and character of the applicant's service as 
extracted from available service records, including health records, and 
information provided by other Government authorities or the applicant, 
such as, but not limited to:
    (i) Information concerning the discharge at issue in the review, 
including:
    (A) Date (YYMMDD) of discharge.
    (B) Character of discharge.
    (C) Reason for discharge.
    (D) The specific regulatory authority under which the discharge was 
issued.
    (ii) Date (YYMMDD) of enlistment.
    (iii) Period of enlistment.
    (iv) Age at enlistment.
    (v) Length of service.
    (vi) Periods of unauthorized absence.
    (vii) Conduct and efficiency ratings (numerical or narrative).
    (viii) Highest rank received.
    (ix) Awards and decorations.
    (x) Educational level.
    (xi) Aptitude test scores.
    (xii) Incidents of punishment pursuant to Article 15, Uniform Code 
of Military Justice (including nature and date (YYMMDD) of offense or 
punishment).
    (xiii) Convictions by court-martial.
    (xiv) Prior military service and type of discharge received.
    (2) A list of the type of documents submitted by or on behalf of the 
applicant (including a written brief, letters of recommendation, 
affidavits concerning the circumstances of the discharge, or other 
documentary evidence), if any.
    (3) A statement whether the applicant testified, and a list of the 
type of witnesses, if any, who testified on behalf of the applicant.
    (4) A notation whether the application pertained to the character of 
discharge, the reason for discharge, or both.
    (5) The DRB's conclusions on the following:
    (i) Whether the character of or reason for discharge should be 
changed.
    (ii) The specific changes to be made, if any.
    (6) A list of the items submitted as issues on DD Form 293 or 
expressly incorporated therein and such other items submitted as issues 
by the applicant that are identified as inadvertently omitted under 
paragraph (a)(4)(i)(D) of this section. If the issues are listed 
verbatim on DD Form 293, a copy of the relevant portion of the Form may 
be attached. Issues that have been withdrawn or modified with the 
consent of the applicant need not be listed.
    (7) The response to the items submitted as issues by the applicant 
under the guidance in paragraph (d) of this section.
    (8) A list of decisional issues and a discussion of such issues 
under the guidance in paragraph (e) of this section.
    (9) Minority views, if any, when authorized under rules of the 
Military Department concerned.
    (10) The recommendation of the DRB president when required by 
paragraph (f) of this section.
    (11) The addendum of the SRA when required by paragraph (g) of this 
section.
    (12) Advisory opinions, including those containing factual 
information, when such opinions have been relied upon for final decision 
or have been accepted as a basis for rejecting any of the applicant's 
issues. Such advisory opinions or relevant portions thereof that are not 
fully set forth in the discussion of decisional issues or otherwise in 
response to items submitted as issues by the application shall be 
incorporated by reference. A copy of opinions incorporated by reference 
shall be appended to the decision and included in the record of 
proceedings.
    (13) A record of the voting, including:
    (i) The number of votes for the DRB's decision and the number of 
votes in the minority, if any.
    (ii) The DRB member's names (last name, first name, M.I.) and votes. 
The copy provided to the applicant may substitute a statement that the 
names and votes will be made available to the applicant at the 
applicant's request.
    (14) Index entries for each decisional issue under appropriate 
categories listed in the index of decisions.
    (15) An authentication of the document by an appropriate official.

[[Page 354]]

    (i) Issuance of decisions following discharge review. The applicant 
and counsel or representative, if any, shall be provided with a copy of 
the decisional document and of any further action in review. The 
applicant (and counsel, if any) shall be notified of the availability of 
the complaint process under Sec. 70.10. Final notification of decisions 
shall be issued to the applicant with a copy to the counsel or 
representative, if any, and to the Military Service concerned.
    (1) Notification to applicants, with copies to counsel or 
representatives, shall normally be made through the U.S. Postal Service. 
Such notification shall consist of a notification of decision, together 
with a copy of the decisional document.
    (2) Notification to the Military Services shall be for the purpose 
of appropriate action and inclusion of review matter in personnel 
records. Such notification shall bear appropriate certification of 
completeness and accuracy.
    (3) Actions on review by superior authority, when occurring, shall 
be provided to the applicant and counsel or representative in the same 
manner as the notification of the review decision.
    (j) Record of DRB proceedings. (1) When the proceedings in any 
review have been concluded, a record thereof will be prepared. Records 
may include written records, electromagnetic records, videotape 
recordings, or a combination thereof.
    (2) At a minimum, the record will include the following:
    (i) The application for review;
    (ii) A record of the testimony in verbatim, summarized, or recorded 
form at the option of the DRB concerned;
    (iii) Documentary evidence or copies thereof, considered by the DRB 
other than the Military Service record;
    (iv) Briefs and arguments submitted by or on behalf of the 
applicant;
    (v) Advisory opinions considered by the DRB, if any;
    (vi) The findings, conclusions, and reasons developed by the DRB;
    (vii) Notification of the DRB's decision to the cognizant custodian 
of the applicant's records, or reference to the notification document;
    (viii) Minority reports, if any;
    (ix) A copy of the decisional document.
    (k) Final disposition of the Record of Proceedings. The original 
record of proceedings and all appendices thereto shall in all cases be 
incorporated in the Military Service record of the applicant and the 
Military Service record shall be returned to the custody of the 
appropriate records holding facility. If a portion of the original 
record of the proceedings cannot be stored with the Military Service 
record, the Military Service record shall contain a notation as to the 
place where the record is stored. Other copies shall be filed and 
disposed of in accordance with appropriate Military Service regulations.
    (l) Availability of Discharge Review Board documents for inspection 
and copying. (1) A copy of the decisional document prepared in 
accordance with paragraph (d) of this section shall be made available 
for public inspection and copying promptly after a notice of final 
decision is sent to the applicant.
    (2) To prevent a clearly unwarranted invasion of personal privacy, 
identifying details of the applicant and other persons will be deleted 
from documents made available for public inspection and copying.
    (i) Names, addresses, social security numbers, and Military Service 
numbers must be deleted. Written justification shall be made for all 
other deletions and shall be available for public inspection.
    (ii) Each DRB shall ensure that there is a means for relating a 
decisional document number to the name of the applicant to permit 
retrieval of the applicant's records when required in processing a 
complaint under Sec. 70.10.
    (3) Any other privileged or classified material contained in or 
appended to any documents required by this part to be furnished the 
applicant and counsel or representative or made available for public 
inspection and copying may be deleted therefrom only if a written 
statement of the basis for the deletions is provided the applicant and 
counsel or representative and made available for public inspection. It 
is not intended that the statement be so detailed as to reveal the 
nature of the withheld material.

[[Page 355]]

    (4) DRB documents made available for public inspection and copying 
shall be located in the Armed Forces Discharge Review/Correction Board 
Reading Room. The documents shall be indexed in a usable and concise 
form so as to enable the public, and those who represent applicants 
before the DRBs, to isolate from all these decisions that are indexed, 
those cases that may be similar to an applicant's case and that indicate 
the circumstances under or reasons for (or both) which the DRB or the 
Secretary concerned granted or denied relief.
    (i) The reading file index shall include, in addition to any other 
items determined by the DRB, the case number, the date, character of, 
reason and authority for the discharge. It shall also include the 
decisions of the DRB and reviewing authority, if any, and the issues 
addressed in the statement of findings, conclusions, and reasons.
    (ii) The index shall be maintained at selected permanent locations 
throughout the United States. This ensures reasonable availability to 
applicants at least 30 days before a traveling panel review. A list of 
these locations shall be published in the Federal Register by the 
Department of the Army. The index shall also be made available at sites 
selected for traveling panels or hearing examinations for such periods 
as the DRB or a hearing examiner is present and in operation. An 
applicant who has requested a traveling panel review or a hearing 
examination shall be advised in the notice of such review of the 
permanent index locations.
    (iii) The Armed Forces Discharge Review/Correction Board Reading 
Room shall publish indexes quarterly for all DRBs. All DRBs shall be 
responsible for timely submission to the Reading Room of individual case 
information required for update of the indexes. In addition, all DRBs 
shall be responsible for submission of new index categories based upon 
published changes in policy, procedures, or standards. These indexes 
shall be available for public inspection or purchase (or both) at the 
Reading Room. When the DRB has accepted an application, information 
concerning the availability of the index shall be provided in the DRB's 
response to the application.
    (iv) Copies of decisional documents will be provided to individuals 
or organizations outside the NCR in response to written requests for 
such documents. Although the Reading Room shall try to make timely 
responses to such requests, certain factors such as the length of a 
request, the volume of other pending requests, and the impact of other 
responsibilities of the staff assigned to such duties may cause some 
delays. A fee may be charged for such documents under appropriate DoD 
and Department of the Army directives and regulations. The manual that 
accompanies the index of decisions shall notify the public that if an 
applicant indicates that a review is scheduled for a specific date, an 
effort will be made to provide requested decisional documents before 
that date. The individual or organization will be advised if that cannot 
be accomplished.
    (v) Correspondence relating to matters under the cognizance of the 
Reading Room (including requests for purchase of indexes) shall be 
addressed to: DA Military Review Boards Agency, Attention: SFBA (Reading 
Room), Room 1E520, The Pentagon, Washington, DC 20310.
    (m) Privacy Act information. Information protected under the Privacy 
Act is involved in the discharge review functions. The provisions of 
part 286a of this title shall be observed throughout the processing of a 
request for review of discharge or dismissal.
    (n) Information requirement. Each Military Department shall provide 
the Deputy Assistant Secretary of Defense (Military Personnel and Force 
Management) DASD (MP&FM), Office of the ASD (MRA&L), with a semiannual 
report of discharge review actions in accordance with Sec. 70.11.
[47 FR 37785, Aug. 26, 1982, as amended at 48 FR 9855, Mar. 9, 1983; 48 
FR 35644, Aug. 5, 1983]



Sec. 70.9  Discharge review standards.

    (a) Objective of review. The objective of a discharge review is to 
examine the propriety and equity of the applicant's discharge and to 
effect changes, if necessary. The standards of review and the underlying 
factors that aid in determining whether the standards are met shall be 
historically consistent with criteria for determining honorable

[[Page 356]]

service. No factors shall be established that require automatic change 
or denial of a change in discharge. Neither a DRB nor the Secretary of 
the Military Department concerned shall be bound by any methodology of 
weighting of the factors in reaching a determination. In each case, the 
DRB or the Secretary of the Military Department concerned shall give 
full, fair, and impartial considerations to all applicable factors 
before reaching a decision. An applicant may not rceive a less favorable 
discharge than that issued at the time of separation. This does not 
preclude correction of clerical errors.
    (b) Propriety. (1) A discharge shall be deemed proper unless, in the 
course of discharge review, it is determined that:
    (i) There exists an error of fact, law, procedure, or discretion 
associated with the discharge at the time of issuance; and that the 
rights of the applicant were prejudiced thereby (such error shall 
constitute prejudicial error if there is substantial doubt that the 
discharge would have remained the same if the error had not been made); 
or
    (ii) A change in policy by the Military Service of which the 
applicant was a member, made expressly retroactive to the type of 
discharge under consideration, requires a change in the discharge.
    (2) When a record associated with the discharge at the time of 
issuance involves a matter in which the primary responsibility for 
corrective action rests with another organization (for example, another 
Board, agency, or court), the DRB will recognize an error only to the 
extent that the error has been corrected by the organization with 
primary responsibility for correcting the record.
    (3) The primary function of the DRB is to exercise its discretion on 
issues of equity by reviewing the individual merits of each application 
on a case-by-case basis. Prior decisions in which the DRB exercised its 
discretion to change a discharge based on issues of equity (including 
the factors cited in such decisions or the weight given to factors in 
such decisions) do not bind the DRB in its review of subsequent cases 
because no two cases present the same issues of equity.
    (4) The following applies to applicants who received less than fully 
Honorable administrative discharges because of their civilian misconduct 
while in an inactive reserve component and who were discharged or had 
their discharge reviewed on or after April 20, 1971: the DRB shall 
either recharacterize the discharge to Honorable without any additional 
proceedings or additional proceedings shall be conducted in accordance 
with the Court's Order of December 3, 1981, in Wood v. Secretary of 
Defense to determine whether proper grounds exist for the issuance of a 
less than Honorable discharge, taking into account that;
    (i) An Other than Honorable (formerly undesirable) Discharge for an 
inactive reservist can only be based upon civilian misconduct found to 
have affected directly the performance of military duties;
    (ii) A General Discharge for an inactive reservist can only be based 
upon civilian misconduct found to have had an adverse impact on the 
overall effectiveness of the military, including military morale and 
efficiency.
    (c) Equity. A discharge shall be deemed to be equitable unless:
    (1) In the course of a discharge review, it is determined that the 
policies and procedures under which the applicant was discharged differ 
in material respects from policies and procedures currently applicable 
on a Service-wide basis to discharges of the type under consideration 
provided that:
    (i) Current policies or procedures represent a substantial 
enhancement of the rights afforded a respondent in such proceedings; and
    (ii) There is substantial doubt that the applicant would have 
received the same discharge if relevant current policies and procedures 
had been available to the applicant at the time of the discharge 
proceedings under consideration.
    (2) At the time of issuance, the discharge was inconsistent with 
standards of discipline in the Military Service of which the applicant 
was a member.
    (3) In the course of a discharge review, it is determined that 
relief is warranted based upon consideration of the applicant's service 
record and other evidence presented to the DRB viewed

[[Page 357]]

in conjunction with the factors listed in this section and the 
regulations under which the applicant was discharged, even though the 
discharge was determined to have been otherwise equitable and proper at 
the time of issuance. Areas of consideration include, but are not 
limited to:
    (i) Quality of service, as evidenced by factors such as:
    (A) Service history, including date of enlistment, period of 
enlistment, highest rank achieved, conduct or efficiency ratings 
(numerical or narrative);
    (B) Awards and decorations;
    (C) Letters of commendation or reprimand;
    (D) Combat service;
    (E) Wounds received in action;
    (F) Records of promotions and demotions;
    (G) Level of responsibility at which the applicant served;
    (H) Other acts of merit that may not have resulted in a formal 
recognition through an award or commendation;
    (I) Length of service during the service period which is the subject 
of the discharge review;
    (J) Prior military service and type of discharge received or 
outstanding postservice conduct to the extent that such matters provide 
a basis for a more thorough understanding of the performance of the 
applicant during the period of service which is the subject of the 
discharge review;
    (K) Convictions by court-martial;
    (L) Records of nonjudicial punishment;
    (M) Convictions by civil authorities while a member of the Service, 
reflected in the discharge proceedings or otherwise noted in military 
service records;
    (N) Records of periods of unauthorized absence;
    (O) Records relating to a discharge instead of court-martial.
    (ii) Capability to serve, as evidenced by factors such as:
    (A) Total capabilities. This includes an evaluation of matters, such 
as age, educational level, and aptitude scores. Consideration may also 
be given whether the individual met normal military standards of 
acceptability for military service and similar indicators of an 
individual's ability to serve satisfactorily, as well as ability to 
adjust to military service.
    (B) Family and Personal Problems. This includes matters in 
extenuation or mitigation of the reason for discharge that may have 
affected the applicant's ability to serve satisfactorily.
    (C) Arbitrary or capricious action. This includes actions by 
individuals in authority that constitute a clear abuse of such authority 
and that, although not amounting to prejudicial error, may have 
contributed to the decision to discharge or to the characterization of 
service.
    (D) Discrimination. This includes unauthorized acts as documented by 
records or other evidence.



Sec. 70.10  Complaints concerning decisional documents and index entries.

    (a) General. (1) The procedures in this section--are established for 
the sole purpose of ensuring that decisional documents and index entries 
issued by the DRBs of the Military Departments comply with the 
decisional document and index entry principles of this part.
    (2) This section may be modified or supplemented by the DASD(MP&FM).
    (3) The following persons may submit complaints:
    (i) A former member of the Armed Forces (or the former member's 
counsel) with respect to the decisional document issued in the former 
member's own case; and
    (ii) A former member of the Armed Forces (or the former member's 
counsel) who states that correction of the decisional document will 
assist the former member in preparing for an administrative or judicial 
proceeding in which the former member's own discharge will be at issue.
    (4) The Department of Defense is committed to processing of 
complaints within the priorities and processing goals set forth in 
paragraph (d)(1)(iii) of this section. This commitment, however, is 
conditioned upon reasonable use of the complaint process under the 
following considerations. The DRBs were established for the benefit of 
former members of the Armed Forces. The complaint process can aid such 
persons most effectively if it is used by

[[Page 358]]

former members of the Armed Forces when necessary to obtain correction 
of their own decisional documents or to prepare for discharge reviews. 
If a substantial number of complaints submitted by others interferes 
with the ability of the DRBs to process applications for discharge 
review in a timely fashion, the Department of Defense will adjust the 
processing goals to ensure that the system operates to the primary 
advantage of applicants.
    (5) The DASD(MP&FM) is the final authority with respect to action on 
such correspondence.
    (b) The Joint Service Review Activity (JSRA). A three member JSRA 
consisting of one judge advocate from each Military Department shall 
advise the DASD(MP&FM). The operations of the JSRA shall be coordinated 
by a full-time administrative director, who shall serve as recorder 
during meetings of the JSRA. The members and the administrative director 
shall serve at the direction of the DASD(MP&FM).
    (c) Classification and control of correspondence--(1) Address of the 
JSRA. Correspondence with the OSD concerning decisional documents or 
index entries issued by the DRBs shall be addressed as follows: Joint 
Service Review Activity, OASD(MRA&L) (MP&FM), Washington, DC 20301.
    (2) Docketing. All such correspondence shall be controlled by the 
administrative director through the use of a uniform docketing 
procedure.
    (3) Classification. Correspondence shall be reviewed by the 
administrative director and categorized either as a complaint or an 
inquiry in accordance with the following:
    (i) Complaints. A complaint is any correspondence in which it is 
alleged that a decisional document issued by a DRB or SRA contains a 
specifically identified violation of the Stipulation of Dismissal, 
Settlement Agreement, or related Orders in the Urban Law case or the 
decisional document or index entry principles of this Directive. A 
complainant who alleges error with respect to a decisional document 
issued to another person is encouraged to set forth specifically the 
grounds for determining that a reasonable person familiar with the 
discharge review process cannot understand the basis for the decision. 
See paragraph (d)(1)(i)(B) of this section.
    (ii) Inquiries. An inquiry is any correspondence other than a 
complaint.
    (d) Review of complaints. (1) Guidance. The following guidance 
applies to review of complaints:
    (i) Standards. Complaints shall be considered under the following 
standards:
    (A) The applicant's case. A complaint by an applicant with respect 
to the decisional document issued in the applicant's own discharge 
review shall be considered under the Stipulation of Dismissal in the 
Urban Law case and other decisional document requirements applicable at 
the time the document was issued, including those contained in the 
Settlement Agreement and related Orders, subject to any limitations set 
forth therein with respect to dates of applicability. If the authority 
empowered to take corrective action has a reasonable doubt whether a 
decisional document meets applicable requirements of the Urban Law case 
or other applicable rules, the complaint shall be resolved in the 
applicant's favor.
    (B) Other cases. With respect to all other complaints, the standard 
shall be whether a reasonable person familiar with the discharge review 
process can understand the basis for the decision, including the 
disposition of issues raised by the applicant. This standard is designed 
to ensure that the complaint process is not burdened with the need to 
correct minor errors in the preparation of decisional documents.
    (ii) Use of DD Form 293. With respect to any decisional document 
issued on or after November 27, 1982, a complaint alleging failure of 
the DRB to address adequately matter not submitted on DD Form 293 or 
expressly incorporated therein will be resolved in the complainant's 
favor only if the failure to address the issue was arbitrary, 
capricious, or an abuse of discretion.
    (iii) Scope of review. When a complaint concerns a specific issue in 
the applicant's own discharge review, the complaint review process shall 
involve a review of all the evidence that was before the DRB or SRA, 
including the testimony and written submissions of the applicant, to 
determine whether

[[Page 359]]

the issue was submitted, and if so, whether it was addressed adequately 
with respect to the Stipulation of Dismissal, Settlement Agreement, or 
related Orders in the Urban Law case and other applicable provisions of 
this Directive. With respect to all other complaints about specific 
issues, the complaint review process may be based solely on the 
decisional document, except when the complainant demonstrates that facts 
present in the review in question raise a reasonable likelihood of a 
violation of applicable provisions of the Stipulation of Dismissal and a 
reasonable person, familiar with the discharge review process, could 
resolve the complaint only after a review of the evidence that was 
before the DRB.
    (iv) Allegations pertaining to an applicant's submission. The 
following additional requirements apply to complaints about modification 
of an applicant's issue or the failure to list or address an applicant's 
issue:
    (A) When the complaint is submitted by the applicant, and the record 
of the hearing is ambiguous on the question whether there was a meeting 
of minds between the applicant and the DRB as to modification or 
omission of the issue, the ambiguity will be resolved in favor of the 
applicant.
    (B) When the complaint is submitted by a person other than the 
applicant, it must set forth facts (other than the mere omission or 
modification of an issue) demonstrating a reasonable likelihood that the 
issue was omitted or modified without the applicant's consent.
    (C) When the complaint is rejected on the basis of the presumption 
of regularity, the response to the complaint must be set forth the 
reasons why the evidence submitted by the complainant was not sufficient 
to overcome the presumption.
    (D) With respect to decisional documents issued on or after the 
effective date of the amendments to Sec. 70.8, any change in wording of 
an applicant's issue which is effected in violation of the principles 
set forth in Sec. 70.8(a)(5)(iii) constitutes an error requiring 
corrective action. With respect to a decisional document issued before 
that date, corrective action will be taken only when there has been a 
complaint by the applicant or counsel with respect to the applicant's 
own decisional document and it is determined that the wording was 
changed or the issue was omitted without the applicant's consent.
    (E) If there are references in the decisional document to matters 
not raised by the applicant and not otherwise relied upon in the 
decision, there is no requirement under the Urban Law case that such 
matters be accompanied by a statement of findings, conclusions, or 
reasons. For example, when the DRB discusses an aspect of the service 
record not raised as an issue by the applicant, and the issue is not a 
basis for the DRB's decision, the DRB is not required to discuss the 
reasons for declining to list that aspect of the service record as an 
issue.
    (v) Guidance as to other types of complaints. The following guidance 
governs other specified types of complaints:
    (A) The Stipulation of Dismissal requires only that those facts that 
are essential to the decision be listed in the decisional document. The 
requirement for listing specified facts from the military record was not 
established until March 29, 1978, in 32 CFR part 70 Decisional documents 
issued prior to that date are sufficient if they meet the requirements 
of the Stipulation.
    (B) When an applicant submits a brief that contains material in 
support of a proposed conclusion on an issue, the DRB is not required to 
address each aspect of the supporting material in the brief. However, 
the decisional document should permit the applicant to understand the 
DRB's position on the issue and provide reviewing authorities with an 
explanation that is sufficient to permit review of the DRB's decision. 
When an applicant submits specific issues and later makes a statement 
before the DRB that contains matter in support of that issue, it is not 
necessary to list such supporting matter as a separate issue.
    (C) For all decisional documents issued before November 27, 1982, 
failure to respond to an issue raised by an applicant constitutes error 
unless it reasonably may be inferred from the record that the DRB 
response relied on one of the exceptions listed in

[[Page 360]]

Sec. 70.8(d)(3)(ii); (e)(3)(ii)(C) (3) through (4) and (e)(6)(ii)(C) (3) 
through (4). If the decisional document supports a basis for not 
addressing an issue raised by the applicant (for example, if it is 
apparent that resolving the issue in the applicant's favor would not 
warrant an upgrade), there is no requirement in the Stipulation of 
Dismissal that the decisional document explain why the DRB did not 
address the issue. With respect to decisional documents issued on or 
after November 27, 1982, a response shall be prepared in accordance with 
the decisional document principles set forth in Sec. 70.8.
    (D) When a case is reviewed upon request of an applicant, and the 
DRB upgrades the discharge to ``General,'' the DRB must provide reasons 
why it did not upgrade to ``Honorable'' unless the applicant expressly 
requests lesser relief. This requirement applies to all requests for 
corrective action submitted by an applicant with respect to his or her 
decisional document. In all other cases, this requirement applies to 
decisional documents issued on or after November 9, 1978. When the DRB 
upgrades to General, its explanation for not upgrading to Honorable may 
consist of reference to adverse matter from the applicant's military 
record. When a discharge is upgraded to General in a review on the DRB's 
own motion, there is no requirement to explain why the discharge was not 
upgraded to Honorable.
    (E) There is no requirement under the Stipulation of Dismissal to 
provide reasons for uncontested findings. The foregoing applies to 
decisional documents issued before November 27, 1982. With respect to 
decisional documents issued on or after that date, the following 
guidance applies with respect to an uncontested issue of fact that forms 
the basis for a grant or denial of a change in discharge: the decisional 
document shall list the specific source of information relied upon in 
reaching the conclusion, except when the information is listed in the 
portion of the decisional document that summarizes the service record.
    (F) The requirements of Sec. 70.8(e)(3) (ii)(B)(2) and (e)(6) 
(ii)(B)(2) with respect to explaining use of the presumption of 
regularity apply only to decisional documents issued on or after 
November 27, 1982. When a complaint concerning a decisional document 
issued before that date addresses the adequacy of the DRB's use of the 
presumption of regularity, or words having a similar import, corrective 
action will be required only if a reasonable person familiar with the 
discharge review process can not understand the basis for relying on the 
presumption.
    (G) When the DRB balances mitigrating factors against aggravating 
factors as the reason for a conclusion, the Stipulation of Dismissal 
does not require the statement of reasons to set forth the specific 
factors that were balanced if such factors are otherwise apparent on the 
fact of the decisional document. The foregoing applies to decisional 
documents prepared before November 27, 1982. With respect to decisional 
documents prepared after that date, the statements addressing decisional 
issues in such a case will list or refer to the factors supporting the 
conclusion in accordance with Sec. 70.8(e)(6)(ii).
    (vi) Documents that were the subject of a prior complaint. The 
following applies to a complaint concerning a decisional document that 
has been the subject of prior complaints:
    (A) If the complaint concerns a decisional document that was the 
subject of a prior complaint in which action was completed, the 
complainant will be informed of the substance and disposition of the 
prior complaint, and will be further informed that no additional action 
will be taken unless the complainant within 30 days demonstrates that 
the prior disposition did not produce a decisional document that 
comports with the requirements of paragraph (d)(1)(i)(A) of this 
section.
    (B) If the complaint concerns a decisional document that is the 
subject of a pending complaint, the complainant will be informed that he 
or she will be provided with the results of the pending complaint.
    (C) These limitations do not apply to the initial complaint 
submitted on or after the effective date of the amendments to this 
section by an applicant with respect to his or her own decisional 
document.

[[Page 361]]

    (2) Duties of the administrative director. The administrative 
director shall take the following actions:
    (i) Acknowledge receipt of the complaint;
    (ii) Assign a docket number and note the date of receipt; and
    (iii) Forward the complaint to the Military Department concerned, 
except that the case may be forwarded directly to the DASD (MP&FM) when 
the administrative director makes an initial determination that 
corrective action is not required.
    (3) Administrative processing. The following guidance applies to 
administrative processing of complaints:
    (i) Complaints normally shall be processed on a first-in/first-out 
basis, subject to the availability of records, pending discharge review 
actions, and the following priorities:
    (A) The first priority category consists of cases in which (1) there 
is a pending discharge review and the complainant is the applicant; and 
(2) the complainant sets forth the relevance of the complaint to the 
complainant's pending discharge review application.
    (B) The second priority category consists of requests for correction 
of the decisional document in the complainant's own discharge review 
case.
    (C) The third priority category consists of complaints submitted by 
former members of the Armed Forces (or their counsel) who state that the 
complaint is submitted to assist the former member's submission of an 
application for review.
    (D) The fourth priority category consists of other complaints in 
which the complainant demonstrates that correction of the decisional 
document will substantially enhance the ability of applicants to present 
a significant issue to the DRBs.
    (E) The fifth priority category consists of all other cases.
    (ii) Complainants who request consideration in a priority category 
shall set forth in the complaint the facts that give rise to the claim 
of placement in the requested category. If the complaint is relevent to 
a pending discharge review in which the complainant is applicant or 
counsel, the scheduled date of the review should be specified.
    (iii) The administrative director is responsible for monitoring 
compliance with the following processing goals:
    (A) The administrative director normally shall forward 
correspondence to the Military Department concerned within 3 days after 
the date of receipt specified in the docket number. Correspondence 
forwarded directly to the DASD(MP&FM) under paragraph (d)(2)(iii) of 
this section, normally shall be transmitted within 7 days after the date 
of receipt.
    (B) The Military Department normally shall request the necessary 
records within 5 working days after the date of receipt from the 
administrative director. The Military Department normally shall complete 
action under paragraph (d)(4) of this section within 45 days after 
receipt of all necessary records. If action by the Military Department 
is required under paragraph (d)(9) of this section, normally it shall be 
completed within 45 days after action is taken by the DASD(MP&FM).
    (C) The JSRA normally shall complete action under paragraph (d)(7) 
of this section at the first monthly meeting held during any period 
commencing 10 days after the administrative director receives the action 
of the Military Department under paragraph (d)(5) of this section.
    (D) The DASD(MP&FM) normally shall complete action under paragraph 
(d)(8) of this section within 30 days after action is taken by the JSRA 
under paragraph (d)(7) of this section or by the administrative director 
under paragraph (d)(2)(iii) of this section.
    (E) If action is not completed within the overall processing goals 
specified in this paragraph, the complainant shall be notified of the 
reason for the delay by the administrative director and shall be 
provided with an approximate date for completion of the action.
    (iv) If the complaints are submitted in any 30 day period with 
respect to more than 50 decisional documents, the administrative 
director shall adjust the processing goals in light of the number of 
complaints and discharge review applications pending before the DRBs.
    (v) At the end of each month, the administrative director shall send 
each

[[Page 362]]

Military Department a list of complaints, if any, in which action has 
not been completed within 60 days of the docket date. The Military 
Department shall inform the administrative director of the status of 
each case.
    (4) Review of complaints by the Military Departments. The Military 
Department shall review the complaint under the following guidance:
    (i) Rejection of complaint. If the Military Department determines 
that all the allegations contained in the complaint are not specific or 
have no merit, it shall address the allegations using the format at 
attachment 1 (Review of Complaint).
    (ii) Partial agreement. If the Military Department determines that 
some of the allegations contained in the complaint are not specific or 
have no merit and that some of the allegations contained in the 
complaint have merit, it shall address the allegations using the format 
at attachment 1 and its DRB shall take appropriate corrective action in 
accordance with paragraph (d)(4)(v) of this section.
    (iii) Full agreement. If the Military Department determines that all 
of the allegations contained in the complaint have merit, its DRB shall 
take appropriate corrective action in accordance with paragraph 
(d)(4)(v) of this section.
    (iv) Other defects. If, during the course of its review, the 
Military Department notes any other defects in the decisional document 
or index entries (under the applicable requirements of the Urban Law 
case or under this part) the DRB shall take appropriate corrective 
action under paragraph (d)(4)(v) of this section. This does not 
establish a requirement for the Military Department to review a 
complaint for any purpose other than to determine whether the 
allegations contained in the complaint are specific and have merit; 
rather, it simply provides a format for the Military Department to 
address other defects noted during the course of processing the 
complaint.
    (v) Appropriate corrective action. The following procedures govern 
appropriate corrective action:
    (A) If a complaint concerns the decisional document in the 
complainant's own discharge review case, appropriate corrective action 
consists of amending the decisional document or providing the 
complainant with an opportunity for a new discharge review. An amended 
decisional document will be provided if the applicant requests that form 
of corrective action.
    (B) If a complaint concerns a decisional document involving an 
initial record review under the Special Discharge Review Program or the 
Pub. L. 95-126 rereview program, appropriate corrective action consists 
of (1) amending the decisional document; or (2) notifying the applicant 
and counsel, if any, of the opportunity to obtain a priority review 
using the letter providing at attachment 6. When the DRB takes 
corrective action under this provision by amending a decisional 
document, it shall notify the applicant and counsel, if any, of the 
opportunity to request a de novo review under the Special Discharge 
Review Program or under Pub. L. 95-126 rereview program, as appropriate.
    (C) When corrective action is taken with respect to a decisional 
document in cases prepared under Pub. L. 95-126 the DRB must address 
issues previously raised by the DRB or the applicant during review of 
the same case during the SDRP only insofar as required by the following 
guidance:
    (1) When the DRB bases its decision upon issues previously 
considered during the SDRP, the new decisional document under Pub. L. 
95-126 must address those issues;
    (2) If, during consideration of the case under Pub. L. 95-126 the 
applicant presents issues previously considered during the SDRP, the new 
decisional document must address those issues; and
    (3) If a decisional document concerning an initial record review 
under Pub. L. 95-126 is otherwise defective and corrective action is 
taken after a request by the applicant for a priority review in response 
to the letter at attachment 6, the new decisional document shall address 
all issues previously raised by the applicant during the SDRP.
    (D) Except for cases falling under paragraph (d)(4)(v)(B) of this 
section, if a complaint concerns a decisional document in which the 
applicant received

[[Page 363]]

an Honorable Discharge and the full relief requested, if any, with 
respect to the reason for discharge, appropriate corrective action 
consists of amending the decisional document.
    (E) In all other cases, appropriate corrective action consists of 
amending the decisional document or providing the applicant with the 
opportunity for a new review, except that an amended decisional document 
will be provided when the complainant expressly requests that form of 
corrective action.
    (vi) Amended decisional documents. One that reflects a determination 
by a DRB panel (or the SRA) as to what the DRB panel (or SRA) that 
prepared the defective decisional document would have entered on the 
decisional document to support its decision in this case.
    (A) The action of the amending authority does not necessarily 
reflect substantive agreement with the decision of the original DRB 
panel (or SRA) on the merits of the case.
    (B) A corrected decisional document created by amending a decisional 
document in response to a complaint will be based upon the complete 
record before the DRB (or the SRA) at the time of the original defective 
statement was issued, including, if available, a transcript, tape 
recording, videotape or other record of a hearing, if any. The new 
decisional document will be indexed under categories relevant to the new 
statements.
    (C) When an amended decisional document is required under paragraphs 
(d)(4)(v)(A) and (d)(4)(v)(D) of this section and the necessary records 
cannot be located, a notation to that effect will be made on the 
decisional document, and the applicant and counsel, if any, will be 
afforded an opportunity for a new review, and the complainant will be 
informed of the action.
    (D) When an amended decisional document is requested under paragraph 
(d)(4)(v)(C) and the necessary records cannot be located, a notation to 
that effect will be made on the decisional document, and the complainant 
will be informed that the situation precludes further action.
    (vii) Time limit for requesting a new review. An applicant who is 
afforded an opportunity to request a new review may do so within 45 
days.
    (viii) Interim notification. When the Military Department determines 
that some or all of the allegations contained in the complaint are not 
specific or have no merit but its DRB takes corrective action under 
paragraph (d)(4)(ii) or (d)(4)(iv) of this section, the DRB's 
notification to the applicant and counsel, if any, and to the 
complainant, if other than the applicant or counsel, should include the 
following or similar wording: ``This is in partial response to (your)/
(a) complaint to the Office of the Assistant Secretary of Defense 
(Manpower, Reserve Affairs, and Logistics) dated ________ concerning 
________ Discharge Review Board decisional document ________. A final 
response to (your)/(the) complaint, which has been returned to the 
Office of the Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) for further review, will be provided to you in the near 
future.''
    (ix) Final notification. When the Discharge Review Board takes 
corrective action under paragraphs (d)(4)(iii) and (d)(9) of this 
section ________ its notification to the applicant and counsel, if any, 
and to the complainant, if other than the applicant or counsel, should 
include the following or similar wording: ``This is in response to 
(your)/(a) complaint to the Office of the Assistant Secretary of Defense 
(Manpower, Reserve Affairs, and Logistics) dated ________ concerning 
________ Discharge Review Board decisional document ________.
    (5) Transmittal to the administrative director. The Military 
Department shall return the complaint to the administrative Director 
with a copy of the decisional document and, when applicable, any of the 
following documents:
    (i) The ``Review of Complaint.''
    (ii) A copy of the amendment to the decisional document and the 
accompanying transmittal letter or letters to the applicant and counsel, 
if any, and to the complainant, if other than the applicant or counsel.
    (iii) A copy of the notification to the applicant and counsel, if 
any, of the opportunity to request a new review, and a copy of the 
notification to the complainant, if other than the applicant or

[[Page 364]]

counsel, that the applicant has been authorized a new review.
    (6) Review by the administrative director. The administrative 
director shall review the complaint and accompanying documents to ensure 
the following:
    (i) If the Military Department determined that any of the 
allegations contained in the complaint are not specific or have no 
merit, the JSRA shall review the complaint and accompanying documents. 
The JSRA shall address the allegations using the format at attachment 2 
(Review of and Recommended Action on Complaint) and shall note any other 
defects in the decisional document or index entries not previously noted 
by the Military Department. This does not establish a requirement for 
the JSRA to review such complaints for any purpose other than to address 
the allegations contained in the complaint; rather, it simply provides a 
format for the JSRA to address other defects noted in the course of 
processing the complaint.
    (ii) If the Military Department determined that all of the 
allegations contained in the complaint have merit and its DRB amended 
the decisional document, the amended decisional document shall be 
subject to review by the JSRA on a sample basis each quarter using the 
format at attachment 3 (Review of any Recommendation on Amended 
Decisional Document).
    (iii) If the Military Department determined that all of the 
allegations contained in the complaint have merit and its DRB notified 
the applicant and counsel, if any, of the opportunity to request a new 
review, review of such corrective action is not required.
    (7) Review by the JSRA. The JSRA shall meet for the purpose of 
conducting the reviews required in paragraphs (d)(6)(i), (d)(6)(ii), and 
(d)(9)(iii)(A) of this section. The Administrative director shall call 
meetings once a month, if necessary, or more frequently depending upon 
the number of matters before the JSRA. Matters before the JSRA shall be 
presented to the members by the recorder. Each member shall have one 
vote in determining matters before the JSRA, a majority vote of the 
members determining all matters. Determinations of the JSRA shall be 
reported to the DASD(MP&FM) as JSRA recommendations using the prescribed 
format. If a JSRA recommendation is not unanimous, the minority member 
may prepare a separate recommendation for consideration by the 
DASD(MP&FM) using the same format. Alternatively, the minority member 
may indicate ``dissent'' next to his signature on the JSRA 
recommendation.
    (8) Review by the DASD(MP&FM). The DASD(MP&FM) shall review all 
recommendations of the JSRA and the administrative director as follows:
    (i) The DASD(MP&FM) shall review complaints using the format at 
Attachment 4 (Review of and Action on Complaint). The DASD(MP&FM) is the 
final authority in determining whether the allegations contained in a 
complaint are specific and have merit. If the DASD(MP&FM) determines 
that no further action by the Military Department is warranted, the 
complainant and the Military Department shall be so informed. If the 
DASD(MP&FM) determines that further action by the Military Department is 
required, the Military Department shall be directed to ensure that 
appropriate corrective action is taken by its DRB and the complainant 
shall be provided an appropriate interim response.
    (ii) The DASD(MP&FM) shall review amended decisional documents using 
the format at attachment 5 (Review of and Action on Amended Decisional 
Document). The DASD(MP&FM) is the final authority in determining whether 
an amended decisional document complies with applicable requirements of 
the Urban Law case and, when applicable, this Directive. If the 
DASD(MP&FM) determines that no further corrective action by the Military 
Department is warranted, the Military Department shall be so informed. 
If the DASD(MP&FM) determines that further corrective action by the 
Military Department is required, the Military Department shall be 
directed to ensure that appropriate corrective action is taken by its 
DRB.
    (iii) It is noted that any violation of applicable requirements of 
the Urban Law case is also a violation of this part. However, certain 
requirements under this part are not requirements under the Urban Law 
case. If the allegations contained in a complaint are

[[Page 365]]

determined to have merit or if an amended decisional document is 
determined to be defective on the basis of one of these additional 
requirements under this part the DASD(MP&FM) determination shall reflect 
this fact.
    (9) Further action by the Military Department. (i) With respect to a 
determination by the DASD (MP&FM) that further action by the Military 
Department is required, its DRB shall take appropriate corrective action 
in accordance with paragraph (d)(4) of this section.
    (ii) The Military Department shall provide the administrative 
director with the following documents when relevant to corrective action 
taken in accordance with paragraph (d)(4) of this section:
    (A) A copy of the amendment to the decisional document and the 
accompanying transmittal letter or letters to the applicant and counsel, 
if any, and to the complainant, if other than the applicant or counsel.
    (B) A copy of the notification to the applicant and counsel, if any, 
of the opportunity to request a new review, and a copy of the 
notification to the complainant, if other than the applicant or counsel, 
that the applicant has been authorized a new review.
    (iii) The administrative director shall review the documents 
relevant to corrective action taken in accordance with paragraph (d)(4) 
of this section, and ensure the following:
    (A) If the DRB amended the decisional document, the amended 
decisional document shall be subject to review by the JSRA on a sample 
basis each quarter using the format at attachment 3 (Review of and 
Recommended Action on Amended Decisional Document).
    (B) If the DRB notified the applicant and counsel, if any, of the 
opportunity to request a new review, review of such corrective action is 
not required.
    (10) Documents required by the JSRA or DASD (MP&FM). Upon request, 
the Military Department shall provide the administrative director with 
other documents required by the JSRA or the DASD (MP&FM) in the conduct 
of their reviews.
    (e) Responses to inquiries. The following procedures shall be used 
in processing inquiries:
    (1) The administrative director shall assign a docket number to the 
inquiry.
    (2) The administrative director shall forward the inquiry to the 
Military Department concerned.
    (3) The Military Department shall prepare a response to the inquiry 
and provide the administrative director with a copy of the response.
    (4) The Military Department's response shall include the following 
or similar wording: ``This is in response to your inquiry to the Office 
of the Assistant Secretary of Defense (Manpower, Reserve Affairs, and 
Logistics) dated ________ concerning ________.
    (f) Indexing. The DRB concerned shall reindex all amended decisional 
documents and shall provide copies of the amendments to the decisional 
documents to the Armed Forces Discharge Review/Correction Board Reading 
Room.
    (g) Disposition of documents. The administrative director is 
responsible for the disposition of all Military Department, DRB, JSRA, 
and DASD (MP&FM) documents relevant to processing complaints and 
inquiries.
    (h) Referral by the General Counsel, Department of Defense. The 
Stipulation of Dismissal permits Urban Law plaintiffs to submit 
complaints to the General Counsel, DoD, for comment. The General 
Counsel, DoD, may refer such complaints to the Military Department 
concerned or to the JSRA for initial comment.
    (i) Decisional document and index entry principles. The DASD (MP&FM) 
shall identify significant principles concerning the preparation of 
decisional documents and index entries as derived from decisions under 
this section and other opinions of the Office of General Counsel, DoD. 
This review shall be completed not later than October 1 and April 1 of 
each year, or more frequently if deemed appropriate by the DASD (MP&FM). 
The significant principles identified in the review shall be coordinated 
as proposed as amendments to the sections of this part.
    (j) Implementation of amendments. The following governs the 
processing of any correspondence that is docketed prior

[[Page 366]]

to the effective date of amendments to this section except as otherwise 
provided in such amendments:
    (1) Any further action on the correspondence shall be taken in 
accordance with the amendments; and
    (2) No revision of any action taken prior to the effective date of 
such amendments is required.

                    Attachment 1--Review of Complaint

                          Military Department:

                       Decisional Document Number:

                          Name of Complainant:

                             Docket Number:

                          Date of this Review:

    1. Specific allegation(s) noted:
    2. With respect in support of the conclusion, enter the following 
information:
    a. Conclusion whether corrective action is required.
    b. Reasons in support of the conclusion, including findings of fact 
upon which the conclusion is based.
    3. Other defects noted in the decisional document or index entries:
(Authentication)

               Attachment 2--Joint Service Review Activity

Office of the Assistant Secretary of Defense (Manpower, Reserve Affairs, 
                             and Logistics)

               Review by the Joint Service Review Activity

                          Military Department:

                       Decisional Document Number:

                          Name of Complainant:

                           Name of Applicant:

                             Docket Number:

                          Date of this Review:

    1. The Military Department's ``Review of Complaint'' is attached as 
enclosure 1.
    2. Specific Allegations: See part 1 of Military Department's 
``Review of Complaint'' (enclosure 1).
    3. Specific allegation(s) not noted by the Military Department:
    4. With respect to each allegation, enter the following information:
    a. Conclusion as to whether corrective action is required.
    b. Reasons in support of the conclusion, including findings of fact 
upon which conclusion is based.

    Note.-- If JSRA agrees with the Military Departments, the JSRA may 
respond by entering a statement of adoption.

    5. Other defects in the decisional document or index entries not 
noted by the Military Departments:
    6. Recommendation:
    [  ] The complainant and the Military Department should be informed 
that no further action on the complaint is warranted.
    [  ] The Military Department should be directed to take corrective 
action consistent with the above comments.

Army Member, JSRA
Air Force Member, JSRA
Navy Member, JSRA
Recorder, JSRA

               Attachment 3--Joint Service Review Activity

Office of the Assistant Secretary of Defense (Manpower, Reserve Affairs, 
                             and Logistics)

        Review of Amended Decisional Document (Quarterly Review)

                          Military Department:

                       Decisional Document Number:

                          Name of Complainant:

                           Name of Applicant:

                             Docket Number:

                          Date of this Review:

                             Recommendation:

    [  ] The amended decisional document complies with the requirements 
of the Stipulation of Dismissal and, when applicable, DoD Directive 
1332.28. The Military Department should be informed that no further 
corrective action is warranted.
    [  ] The amended decisional document does not comply with the 
Stipulation of Dismissal or DoD Directive 1332.28 as noted herein. The 
Military Department should be directed to ensure that corrective action 
consistent with the defects noted is taken by its Discharge Review 
Board.

Army Member, JSRA
Air Force Member, JSRA
Navy Member, JSRA
Recorder, JSRA

[[Page 367]]


------------------------------------------------------------------------
   Yes       No        NA             Item                 Source       
------------------------------------------------------------------------
{time} .  {time}    {time}    1. Date of discharge  1. DoD Directive    
                                                     1332.28, enclosure 
                                                     3, subsection H.1.;
                                                     Stipulation (Jan.  
                                                     31, 1977) para.    
                                                     5.A.(1)(d)(i)      
                                                     (reference (1)).   
{time} .  {time}    {time}      a. Date of                              
                                 discharge.                             
{time} .  {time}    {time}      b. Character of                         
                                 discharge.                             
{time} .  {time}    {time}      c. Reason for                           
                                 discharge.                             
{time} .  {time}    {time}      d. Specific                             
                                 regulatory                             
                                 authority under                        
                                 which discharge                        
                                 was issued.                            
{time} .  {time}    {time}    2. Service data.      2. DoD Directive    
                               (This requirement     1332.28, enclosure 
                               applies only in       3, subsection H.1.;
                               conjunction with      Annex B, (June     
                               Military Department   ____, 1982) para. 2-
                               Implementation of     2 (reference (1)). 
                               General Counsel,                         
                               DoD, letter dated                        
                               July 20, 1977, or                        
                               to discharge                             
                               reviews conducted                        
                               on or after March                        
                               29, 1978.)                               
{time} .  {time}    {time}      a. Date of                              
                                 enlistment.                            
{time} .  {time}    {time}      b. Period of                            
                                 enlistment.                            
{time} .  {time}    {time}      c. Age at                               
                                 enlistment.                            
{time} .  {time}    {time}      d. Length of                            
                                 service.                               
{time} .  {time}    {time}      e. Periods of                           
                                 unauthorized                           
                                 absence*.                              
{time} .  {time}    {time}      f. Conduct and                          
                                 efficiency                             
                                 ratings                                
                                 (numerical and                         
                                 narrative)*.                           
{time} .  {time}    {time}      g. Highest rank                         
                                 achieved.                              
{time} .  {time}    {time}      h. Awards and                           
                                 decorations*.                          
{time} .  {time}    {time}      i. Educational                          
                                 level.                                 
{time} .  {time}    {time}      j. Aptitude test                        
                                 scores.                                
{time} .  {time}    {time}      k. Art. 15s                             
                                 (including nature                      
                                 and date of                            
                                 offense or                             
                                 punishment)*.                          
{time} .  {time}    {time}      l. Convictions by                       
                                 court-martial*.                        
{time} .  {time}    {time}      m. Prior military                       
                                 service and type                       
                                 of discharge(s)                        
                                 received*.                             
{time} .  {time}    {time}    3. Reference to       3. DoD Directive    
                               materials presented   1332.28, enclosure 
                               by applicant. (This   3, subsection H.2.;
                               requirement applies   H.3.               
                               only to discharge                        
                               reviews conducted                        
                               on or after March                        
                               29, 1978.)                               
{time} .  {time}    {time}      a. Written brief*.                      
{time} .  {time}    {time}      b. Documentary                          
                                 evidence*.                             
{time} .  {time}    {time}      c. Testimony*.....                      
{time} .  {time}    {time}    4. Items submitted    4. DoD Directive    
                               as issues. (See       1332.28, enclosure 
                               issues worksheet).    3, subsection H.6. 
{time} .  {time}    {time}    5. Conclusions. The   5. Dod Directive    
                               decisional document   1332.28, enclosure 
                               must indicate         3, subsection H.5.;
                               clearly the DRB's     Stipulation (Jan.  
                               conclusion            31, 1977),         
                               concerning:           paragraph          
                                                     5.A.(1)(d)(iv)     
                                                     (reference (1)).   
{time} .  {time}    {time}      a. Determination                        
                                 of whether a                           
                                 discharge                              
                                 upgraded under                         
                                 SDRP would have                        
                                 been upgraded                          
                                 under DoD                              
                                 Directive                              
                                 1332.28. (This                         
                                 applies only to                        
                                 mandatory reviews                      
                                 under P.L. 95-126                      
                                 or Special                             
                                 Discharge Review                       
                                 Program (SDRP).                        
{time} .  {time}    {time}      b. Character of                         
                                 discharge, when                        
                                 applicable\1\.                         
{time} .  {time}    {time}      c. Reason for                           
                                 discharge, when                        
                                 applicable\2\.                         
{time} .  {time}    {time}    6. Reasons for        6. DoD Directive    
                               conclusions. The      1332.28, enclosure 
                               decisional document   3, subsection H.7.,
                               must list and         H.8.; Stipulation  
                               discuss the items     (Jan. 31, 1977)    
                               submitted as issues   para. 5.A.(1)(d)(v)
                               by the applicant;     (reference (1)).   
                               and list and                             
                               discuss the                              
                               decisional issues                        
                               providing the basis                      
                               for the DRB's                            
                               conclusion                               
                               concerning:                              
{time} .  {time}    {time}      a. Whether a                            
                                 discharge                              
                                 upgraded under                         
                                 the SDRP would                         
                                 have been                              
                                 upgraded under                         
                                 DoD Directive                          
                                 1332.28. (This                         
                                 applies only to                        
                                 mandatory                              
                                 rereviews under                        
                                 P.L. 95-126 or                         
                                 SDRP reviews.).                        
{time} .  {time}    {time}      b. Character of                         
                                 discharge, where                       
                                 applicable\1\.                         
{time} .  {time}    {time}      c. Reason for                           
                                 discharge, where                       
                                 applicable\2\.                         
{time} .  {time}    {time}    7. Advisory           7. DoD Directive    
                               opinions*.            1332.28, enclosure 
                                                     3, subsection      
                                                     H.12., Stipulation 
                                                     (Jan. 31, 1977)    
                                                     para. 5.A.(1)(f)   
                                                     (reference (1)).   
{time} .  {time}    {time}    8. Recommendation of  8. DoD Directive    
                               DRB President.        1332.28, enclosure 
                                                     3, subsection      
                                                     H.12., Stipulation 
                                                     (Jan. 31, 1977)    
                                                     para. 5.A.(1)(g)   
                                                     (reference (1)).   

[[Page 368]]

                                                                        
{time} .  {time}    {time}    9. A record of        9. DoD Directive    
                               voting.               1332.28, enclosure 
                                                     3, subsection      
                                                     H.13., Stipulation 
                                                     (Jan. 31, 1977)    
                                                     para. 5.A.(3)      
                                                     (reference (1)).   
{time} .  {time}    {time}    10. Indexing of       10. DoD Directive   
                               decisional document.  1332.28, enclosure 
                                                     3, subsection      
                                                     H.14., Stipulation 
                                                     (Jan. 31, 1977)    
                                                     para. 5.A.(5)(a)   
                                                     (reference (1)).   
{time} .  {time}    {time}    11. Authentication    11. DoD Directive   
                               of decisional         1332.28, enclosure 
                               document. (This       3, subsection H.15.
                               requirement applies                      
                               only to discharge                        
                               reviews conducted                        
                               on or after March                        
                               29, 1978.)                               
{time} .  {time}    {time}    12. Other...........  12. As appropriate. 
                                                                        
------------------------------------------------------------------------
                   Explanation of items marked ``No.''                  
        Key:                                                            
Yes: The decisional document meets the requirements of the Stipulation  
  of Dismissal and, when applicable, DoD Directive 1332.28.             
No: The decisional document does not meet the requirements of the       
  Stipulation of Dismissal or DoD Directive 1332.28.                    
NA: Not applicable.                                                     
                                                                        
*Items marked by an asterisk do not necessarily pertain to each review. 
  If the decisional document contains no reference to such an item, NA  
  shall be indicated. When there is a specific complaint with respect to
  an item, the underlying discharge review record shall be examined to  
  address the complaint.                                                
\1\ In this instance ``when applicable'' means all reviews except:      
a. Mandatory rereviews under P.L. 95-126 or SDRP reviews.               
b. Reviews in which the applicant requested only a change in the reason 
  for discharge and the DRB did not raise the character of discharge as 
  a decisional issue.                                                   
\2\ In this instance ``when applicable'' means all reviews in which:    
a. The applicant requested a change in the reason for discharge.        
b. The DRB raised the reason for discharge as a decisional issue.       
c. A change in the reason for discharge is a necessary component of a   
  change in the character of discharge.                                 


                   Attachment 4.--Issues Worksheets\1\                  
------------------------------------------------------------------------
                                                             Corrective 
                                   Listed       Addressed      action   
                                                              required  
------------------------------------------------------------------------
A. Decisional issues providing                                          
 a basis for the conclusion                                             
 regarding a change in the                                              
 character of or reason for                                             
 discharge. (DoD Directive                                              
 1332.28, enclosure 3,                                                  
 subsection D.2):                                                       
    1.                          {time}        {time}        {time}      
    2.                          {time}        {time}        {time}      
    3.                          {time}        {time}        {time}      
B. Items submitted as issues                                            
 by the applicant that are not                                          
 identified as decisional                                               
 issues. (DoD Directive                                                 
 1332.28, enclosure 3,                                                  
 subsection D.3):                                                       
    1.                          {time}        {time}        {time}      
    2.                          {time}        {time}        {time}      
    3.                          {time}        {time}        {time}      
C. Remarks:                                                             
                                                                        
------------------------------------------------------------------------
\1\ This review may be made based upon the decisional document without  
  reference to the underlying discharge review record except as follows:
  if there is an allegation that a specific contention made by the      
  applicant to the DRB was not addressed by the DRB. In such a case, the
  complaint review process shall involve a review of all the evidence   
  that was before the DRB, including the testimony and written          
  submissions of the applicant, to determine whether the contention was 
  made, and if so, whether it was addressed adequately with respect to  
  the Stipulation of Dismissal and, when applicable, DoD Directive      
  1332.28.                                                              
This review may be based upon the decisional document without reference 
  to the regulation governing the discharge in question except as       
  follows: if there is a specific complaint that the DRB failed to      
  address a specific factor required by applicable regulations to be    
  considered for determination of the character of and reason for the   
  discharge in question [where such factors are a basis for denial of   
  any of the relief requested by the applicant]. (The material in       
  brackets pertains only to discharge reviews conducted on or before    
  March 28, 1978.)                                                      

[[Page 369]]

                                                                        

 Attachment 5--Office of the Assistant Secretary of Defense (Manpower, 
                     Reserve Affairs, and Logistics)

                    Review of Complaint (DASD(MP&FM))

                          Military Department:

                       Decisional Document Number:

                          Name of Complainant:

                           Name of Applicant:

                             Docket Number:

                          Date of this Review:

    1. Each allegation is addressed as follows:
    a. Allegation.
    b. Conclusion whether corrective action is required.
    c. Reasons in support of the conclusion, including findngs of fact 
upon which the conclusion is based.

    Note: If the DASD(MP&FM) agrees with the JSRA, he may respond by 
entering a statement of adoption.

    2. Other defects noted in the decisional document or index entries:
    3. Determinations:
    [  ] No further action on the complaint is warranted.
    [  ] Corrective action consistent with the above comments is 
required.

Deputy Assistant Secretary of Defense
(Military Personnel & Force Management)

 Attachment 6--Office of the Assistant Secretary of Defense (Manpower, 
                     Reserve Affairs, and Logistics)

          Review of Amended Decisional Document (DASD (MP&FM))

                          Military Department:

                       Decisional Document Number:

                          Name of Complainant:

                           Name of Applicant:

                             Docket Number:

                          Date of this Review:

                             Recommendation:

    [  ] The amended decisional document complies with the requirements 
of the Stipulation of Dismissal and, when applicable, DoD Directive 
1332.28. No further corrective action is warranted.
    [  ] The amended decisional document does not comply with the 
Stipulation of Dismissal or DoD Directive 1332.28 as noted herein. 
Further corrective action is required consistent with the defects noted 
in the attachment.

Deputy Assistant Secretary of Defense
(Military Personnel & Force Management)

Remarks:

                              Attachment 7

Dear ______
    It has been determined that the decisional document issued in your 
case by the (Army) (Navy) (Air Force) Discharge Review Board during the 
(Special Discharge Review Program) (rereview program under Pub. L. No. 
95-126) should be reissued to improve the clarity of the statement of 
findings, conclusions, and reasons for the decision in your case.
    In order to obtain a new decisional document you may elect one of 
the following options to receive a new review under the (Special 
Discharge Review Program) (rereview program mandated by Pub. L. No. 95-
126):
    1. You may request a new review, including a personal appearance 
hearing if you so desire, by responding on or before the suspense date 
noted at the top of this letter. Taking this action will provide you 
with a priority review before all other classes of cases.
    2. You may request correction of the original decisional document 
issued to you by responding on or before the suspense date noted at the 
top of this letter. After you receive a corrected decisional document, 
you will be entitled to request a new review, including a personal 
appearance hearing if you so desire. If you request correction of the 
original decisional document, you will not receive priority processing 
in terms of correcting your decisional document or providing you with a 
new review; instead, your case will be handled in accordance with 
standard processing procedures, which may mean a delay of several months 
or more.
    If you do not respond by the suspense date noted at the top of this 
letter, no action will be taken. If you subsequently submit a complaint 
about this decisional document, it will be processed in accordance with 
standard procedures.
    To ensure prompt and accurate processing of your request, please 
fill out the form below, cut it off at the dotted line, and return it to 
the Discharge Review Board of the Military Department in which you 
served at the address listed at the top of this letter.
Check only one:
    [  ] I request a new review of my case on a priority basis. I am 
requesting this priority review rather than requesting correction of the 
decisional document previously issued to me. I have enclosed DD Form 293 
as an application for my new review.
    [  ] I request correction of the decisional document previously 
issued to me. I understand that this does not entitle me to priority 
action in correcting my decisional document. I also understand that I 
will be able to obtain a further review of my case upon my

[[Page 370]]

request after receiving the corrected decisional document, but that such 
a review will not be held on a priority basis.
 Dates__________________________________________________________________
 Signatures_____________________________________________________________
Printed Name and Address
 _______________________________________________________________________
[47 FR 37785, Aug. 26, 1982, as amended at 48 FR 9856, Mar. 9, 1983]



Sec. 70.11  DoD semiannual report.

    (a) Semiannual reports will be submitted by the 20th of April and 
October for the preceding 6-month reporting period (October 1 through 
March 31 and April 1 through September 30).
    (b) The reporting period will be inclusive from the first through 
the last days of each reporting period.
    (c) The report will contain four parts:
    (1) Part 1. Regular Cases.
    (2) Part 2. Reconsideration of President Ford's Memorandum of 
January 19, 1977, and Special Discharge Review Program Cases.
    (3) Part 3. Cases Heard under Pub. L. 95-126 by waiver of 10 U.S.C. 
1553, with regard to the statute of limitations.
    (4) Part 4. Total Cases Heard.

                                               Semiannual DRB Report--RCS DD-M(SA) 1489; Summary of Statistics for Discharge Review Board (FY    )                                              
                                                                                         [Sample format]                                                                                        
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Nonpersonal appearance                                              Personal appearance                                        Total           
                               -----------------------------------------------------------------------------------------------------------------------------------------------------------------
         Name of board                                                                                                                                                                   Percent
                                     Applied        Number approved    Percent approved       Applied        Number approved    Percent approved       Applied        Number approved   approved
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                .................  .................  .................  .................  .................  .................  .................  .................  ........
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Note:                                                                                                                                                                                           
    Identify numbers separately for traveling panels, regional panels, or hearing examiners, as appropriate.                                                                                    
    Use of additional footnotes to clarify or amplify the statistics being reported is encouraged.                                                                                              



PART 71--ELIGIBILITY REQUIREMENTS FOR EDUCATION OF MINOR DEPENDENTS IN OVERSEAS AREAS--Table of Contents




Sec.
71.1  Purpose.
71.2  Applicability.
71.3  Definitions.
71.4  Policy.
71.5  Eligibility requirements.
71.6  Responsibilities.
71.7  Eligibility requirements for education of minor dependents and 
          other persons in the Republic of Panama.

    Authority: 10 U.S.C. 921-932 (Supp. IV 1980).

    Source: 47 FR 52701, Nov. 23, 1982, unless otherwise noted.



Sec. 71.1  Purpose.

    This part replaces DoD Instruction 1342.10 and DoD Instruction 
1342.4, and implements 20 U.S.C. 921-932, to:
    (a) Update the policy and eligibility requirements for education of 
DoD dependent students in overseas areas.
    (b) Authorize the enrollment of other minor dependents in DoD 
dependents schools conditioned upon available space and payment of 
tuition.



Sec. 71.2  Applicability.

    This part applies to the Office of the Secretary of Defense, the 
Military Departments, the Organization of the Joint Chiefs of Staff, the 
Unified and Specified Commands, and the Defense Agencies (hereafter 
referred to collectively as ``DoD Components''). The term ``Military 
Services,'' as used herein, refers to the Army, Navy, Air Force, and 
Marine Corps.



Sec. 71.3  Definitions.

    The terms used in this part are defined below.
    (a) Approved non-DoD dependents schools. Schools, including 
dormitory facilities, other than DoD dependents schools, that provide 
suitable educational programs, usually on a tuition basis. The term 
includes residence facilities operated by approved non-DoD dependents 
schools to provide room and board for eligible handicapped dependents 
when DoD dependents schools

[[Page 371]]

cannot provide an appropriate education.
    (b) Commuting area. A designated geographical area surrounding a DoD 
dependents school within which pupil transportation at U.S. Government 
expense is provided for DoD dependent students, except for those living 
within walking distance of the school (See DoD 4500.36-R).
    (c) Correspondence courses. Home or supplemental instruction courses 
for DoD dependent students who live in areas where there are no suitable 
facilities, for handicapped DoD dependent students who cannot attend 
school, and for the supplementation of course offerings at DoD 
dependents schools or approved non-DoD dependents schools.
    (d) DoD dependents schools. Schools established by the Department of 
Defense in overseas areas to provide primary and secondary education for 
minor dependents of DoD sponsors.
    (e) DoD dependents schools with Dormitories. Residence facilities 
operated at certain DoDDS schools, usually at the high school level and 
primarily but not exclusively to provide room and board for DoD 
dependent students who are authorized to accompany their DoD sponsors to 
locations where there are no appropriate educational facilities 
available locally.
    (f) DoD dependent student. A minor dependent who:
    (1) Is the child, stepchild, adopted child, ward, or spouse of a DoD 
sponsor, or who is a resident in the household of a DoD sponsor who 
stands in loco parentis to such individual and who receives one-half or 
more of his or her support from such sponsor; and
    (2) Has not completed secondary school and who will reach his or her 
5th but not 21st birthday by December 31 of the current school year; or
    (3) Is handicapped, and is between 3 and 5 years of age by December 
31 of the current school year, provided that the Director, DoDDS, or 
designee, in his or her sole discretion, determines that adequate staff 
and facilities are available to serve such a handicapped child.
    (g) DoD sponsor. A Military Service member serving on active duty 
and stationed overseas or a civilian employee of the Department of 
Defense who is employed on a full-time basis, paid from appropriated 
funds, and stationed overseas, and who is either a U.S. citizen or a 
person lawfully accorded the privilege of residing permanently in the 
United States as an immigrant in accordance with the United States 
immigration laws (8 U.S.C. ``Aliens and Nationality'').
    (h) Full-time students. Panama Canal College students enrolled in 
courses for 12 or more credit hours during the fall and spring semesters 
of one school year.
    (i) Overseas area. Any area situated outside the United States (the 
States, the District of Columbia, the Commonwealth of Puerto Rico, and 
the possessions of the United States (excluding the Trust Territory of 
the Pacific Islands and Midway Island))
    (j) Part-time students. Panama Canal College students enrolled in 
courses for 11 or fewer credit hours during the fall and spring 
semesters of one school year, and all students enrolled during the 
summer session.
    (k) Space-required. Pupil accommodations that must be provided by 
the DoD dependents schools.
    (l) Space-available. Pupil accommodations that may be made available 
in DoD dependents schools if the Director, DoDDS, or designee, 
determines that a school operated by DoDDS has adequate staff and other 
resources to permit the enrollment of nonspace-required students.



Sec. 71.4  Policy.

    (a) It is the policy of the Department of Defense:
    (1) That, while overseas, DoD dependent students may be enrolled in 
DoD dependents schools or approved non-DoD dependents schools, or may 
take correspondence courses at U.S. Government expenses, under the 
conditions prescribed in Sec. 71.5.
    (2) To allow the enrollment of other minor dependents in DoD 
dependents schools, provided that space is available and that tuition is 
paid.
    (b) Section 57 of this title provides guidance concerning the 
education of handicapped children.

[[Page 372]]



Sec. 71.5  Eligibility requirements.

    Students may be enrolled in the DoD dependents schools pursuant to 
paragraphs (a) through (d) of this section, and in that priority, and 
pursuant to paragraph (e) of this section.
    (a) Space-required, tuition-free. (1) Command-sponsored DoD 
dependent students shall, upon the request of their DoD sponsor, be 
enrolled in DoD dependents schools on a space-required, tuition-free 
basis. However, costs for the education of minor dependents of DoD 
sponsors working for the DoD Security Assistance Program shall be paid 
from DoD Security Assistance Program funds.
    (2) If, as determined by the Director, DoD Dependents Schools 
(DoDDS), or designee, no DoD dependents school is available within the 
commuting area, command-sponsored DoD dependent students are eligible 
for education in approved non-DoD dependents schools at U.S. Government 
expense, usually in that same foreign country, or in DoD dependents 
schools with dormitories, or through correspondence courses at U.S. 
Government expense.
    (3) DoD dependent students may be provided education in approved 
non-DoD dependents schools or may receive correspondence courses at U.S. 
Government expense only at locations where DoD dependents schools are 
not available or are operating at maximum capacity. Only those non-DoD 
dependents schools with programs considered satisfactory by the 
Director, DoDDS, or designee, shall be approved to provide education at 
U.S. Government expense to DoD dependent students. In all cases, the 
payment of tuition in approved non-DoD dependents schools by the U.S. 
Government is limited to those DoD dependent students who are authorized 
transportation at U.S. Government expense to or from an overseas area, 
if their DoD sponsor is military, and to those DoD dependent students 
whose DoD sponsor, if civilian, is eligible for a living quarters 
allowance, as authorized by the Department of State Standardized 
Regulations and DoD 1400.25-M.
    (4) If adequate housing is available within the commuting area of a 
DoD dependents school and an appropriate educational program is 
available at that school, tuition will not be authorized for the 
attendance of DoD dependent students in an approved non-DoD dependents 
school in that same locality, except as authorized in paragraph (a)(3) 
of this section. DoD dependent students who currently are enrolled in an 
approved non-DoD dependents school and who would be adversely affected 
by this limitation may, at the discretion of the Director, DoDDS, or 
designee, be authorized to continue in attendance in that approved non-
DoD dependents school through the 1984-85 school year, or until the 
rotation of the DoD sponsor out of the command, whichever is earlier.
    (5) Approved non-DoD dependents schools that are available free of 
charge and that offer instructional programs in English should be used, 
if feasible, before contracting for education in approved non-DoD 
dependents schools that charge tuition.
    (6) If no DoD dependents school within the commuting area of a 
handicapped DoD dependent student is able to provide an appropriate 
education to that student, DoDDS may place the student in another DoD 
dependents school. If no appropriate DoD dependents school is reasonably 
available, DoDDS then may place the student at U.S. Government expense 
in an approved non-DoD dependents school overseas. DoDDS may place a 
handicapped DoD dependent student in an approved non-DoD dependents 
school in the United States only if no appropriate school is reasonably 
available overseas. DoDDS may not place a non-DoD dependent student in a 
non-DoD dependents school at U.S. Government expense.
    (7) DoD dependent students who are the dependents of a DoD sponsor 
who is detained by a foreign power or is declared missing in action or 
otherwise unlawfully detained may remain in a DoD dependents school, or 
in an approved non-DoD dependents school, at U.S. Government expense for 
as long as the detention or missing status exists, subject to the 
approval of the Director, DoDDS, or designee.
    (8) DoD dependent students who are authorized attendance in a DoD 
dependents school or an approved non-DoD dependents school may complete

[[Page 373]]

the current school year if the DoD sponsor is transferred, dies, or 
retires during the school year, but subsequently shall lose their 
eligibility to attend, except on a space-available, tutition-free basis 
in a DoD dependents school as prescribed in paragraph (c)(2) of this 
section.
    (9) If DoD dependent students are authorized to accompany their DoD 
sponsor to the country of the sponsor's assignment, such dependent 
students ordinarily will not be entitled to space-required, tuition-free 
education in a DoD dependents school in a different overseas country or 
to education in a non-DoD dependents school at U.S. Government expense 
in that different country. Any exceptions to this policy must be 
approved by the Director, DoDDS, or designee.
    (b) Space-available, tuition-paying (federally connected). Under 
section 1404(c) of the ``Defense Dependents' Education Act of 1978'', if 
the Director, DoDDS, or designee, determines that space is available, 
consistent with the local military commander's policy concerning access 
to the installation and agreements with the host nation, other minor 
dependents in the categories specified in this subsection may be 
enrolled in a DoD dependents school upon payment of tuition. The amount 
of tuition shall be determined by the Director, DoDDS, or designee, and 
may not be less than the rate necessary to cover the average cost of 
enrollment of children in the DoD dependents schools. Clarification on 
how tuition rates are determined is contained in DoD Directive 4000.19 
and DoD Instruction 7230.7. Minor dependents in this category may be 
enrolled in the following priority:
    (1) Minor dependents of other U.S. Government agency employees 
stationed overseas.
    (2) Minor dependents of U.S. citizens who have executed contracts or 
who are employed by parent organizations that have executed contracts or 
other agreements with the Department of Defense when the applicable 
contract or agreement authorizes dependent education on a tuition basis 
in the DoD dependents schools. A copy of the document authorizing 
attendance shall be presented to the appropriate DoD dependents school 
official at the time of enrollment. Examples of individuals whose minor 
dependents are covered by this paragraph include:
    (i) Nonappropriated fund instrumentalities (universal annual) 
employees.
    (ii) Defense contractor personnel.
    (iii) United Services Organizations, Inc., personnel.
    (iv) American Red Cross personnel.
    (3) Minor dependents of host-nation or third-country national 
military or civilian personnel accompanying or serving with the Military 
Services overseas, when recommended by the major overseas commander and 
when approved by the Director, DoDDS, or designee.
    (4) Minor dependents of other sponsors who are serving the national 
defense interest, as determined by the Director, DoDDS, or designee.
    (c) Space-available, tuition-free. Under section 1404(c) of the 
``Defense Dependents' Education Act of 1978'', the following classes of 
DoD dependent students may be enrolled, in the priority given below, in 
DoD dependents schools on a space-available, tuition-free basis:
    (1) Minor dependents of military DoD sponsors who are stationed in 
overseas areas to which their dependents are not authorized 
transportation at U.S. Government expense or minor dependents of 
civilian DoD sponsors who are not entitled to a living quarters 
allowance as authorized by the Department of State Standardized 
Regulations and DoD 1400.25-M, when the sponsors elect to transport 
these dependents at their own expense to overseas areas in which the 
sponsors are stationed (noncommand-sponsored dependents). If at any time 
during a DoD sponsor's overseas assignment that sponsor's minor 
noncommand-sponsored dependents become command-sponsored or the sponsor 
acquires minor, command-sponsored dependents, those dependents shall be 
authorized ``space-required, tuition-free'' status.
    (2) DoD dependent students who are dependents of DoD sponsors who 
die while intitled to compensation or active duty pay at the time of the 
sponsor's death, provided that the surviving spouse either was residing 
in an overseas area when the sponsor died or has been a citizen of a 
foreign country and

[[Page 374]]

returns to that country. The DoD dependent student must be enrolled in a 
DoD dependents school either within 1 year of the DoD sponsor's death 
or, if the dependent is below school age when the sponsor dies, within 1 
year of the dependent's becoming eligible to enroll.
    (3) Noncommand-sponsored DoD dependents who are enrolled in a DoD 
dependents school may remain in a DoD dependents school if their sponsor 
is declared missing in action or otherwise unlawfully detained for as 
long as the detention or missing status exists, subject to the approval 
of the Director, DoDDS, or designee.
    (d) Space-available, tuition-paying (nonfederally connected). Under 
section 1404(c) of the ``Defense Dependents' Education Act of 1978'', 
the following minor dependents may be enrolled in a DoD dependents 
school upon payment of tuition if the Director, DoDDS, or designee, 
determines that space is available:
    (1) Dependents of U.S. citizens residing in overseas areas, 
including dependents of retired personnel, or of deceased personnel not 
covered in paragraph (c)(2) of this section.
    (2) Dependents of foreign nationals, when there is no objection from 
the host nation and when such inclusion does not displace or prevent 
inclusion of U.S. citizen-sponsored minor dependents seeking admission 
on the same basis at the same time.
    (e) Education in the Republic of Panama. Eligibility requirements 
for education in the Republic of Panama are prescribed in Sec. 71.7.



Sec. 71.6  Responsibilities.

    (a) The Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) shall monitor compliance with this part.
    (b) The Heads of DoD Components shall comply with this part.
    (c) The Director, DoD Dependents Schools, or designee, shall:
    (1) Authorize the attendance of DoD dependent students in DoD 
dependents schools or approved non-DoD dependents schools, or provide 
correspondence courses at U.S. Government expense, in accordance with 
this part.
    (2) Authorize the enrollment of other minor dependents in DoD 
dependents schools, in accordance with this part, and establish 
priorities among those dependents within an eligibility category.
    (3) Provide information and guidance to DoD sponsor regarding 
enrollment in DoD dependents schools, residence in DoD dependents school 
dormitories or approved non-DoD dependents schools dormitories, 
enrollment in approved non-DoD dependents schools, and receipt of 
correspondence courses.
    (4) Establish, in coordination with the supporting installation or 
community commander, commuting areas around DoD dependents schools for 
the purpose of determining eligibility for transportation of DoD 
dependent students. (See DoD 4500.36-R.)
    (5) Periodically review the educational programs in approved non-DoD 
dependents schools that are used to educate DoD dependent students to 
ensure that these programs are satisfactory.
    (d) Commanders of overseas installations, military communities, or 
activities shall:
    (1) Advise incoming and newly assigned personnel about the DoD 
dependent schools' commuting areas and the extent of pupil 
transportation service supporting the local DoD dependents schools.
    (2) Assist incoming and newly assigned personnel in obtaining 
housing within the commuting area of the local DoD dependents school, if 
feasible.
    (3) Advise incoming and newly assigned personnel that, if adequate 
housing is available within the commuting area of a DoD dependents 
school and if the DoD sponsor's place of employment is also reasonably 
accessible from that commuting area, tuition assistance will not be 
available to provide education in approved non-DoD dependents schools 
for minor dependents of DoD sponsors who elect to reside beyond the 
commuting area of a DoD dependents school. (see DoD 4500.36)
    (4) Inform incoming and newly assigned personnel that they will not 
be reimbursed for unauthorized enrollments in non-DoD dependents 
schools.

[[Page 375]]



Sec. 71.7  Eligibility requirements for education of minor dependents and other persons in the Republic of Panama.

    (a) The ``Panama Canal Act of 1979'' authorizes the extension of 
primary, secondary, and postsecondary educational services to DoD 
dependent students and other categories of dependents. Basic eligibility 
policy is described in Sec. 71.5 of this part. Exceptional eligibility 
requirements for education for dependents in the Republic of Panama are 
addressed below.
    (b) Minor dependents may be enrolled in DoD dependents schools or 
approved non-DoD dependents schools in the Republic of Panama or may 
receive correspondence courses at U.S. Government expense under the 
conditions and in the priority indicated below.
    (1) Space required, tuition-free education and education in approved 
non-DoD dependents schools. In addition to DoD dependent students 
entitled to receive space-required, tuition-free education from DoDDS 
under Sec. 71.5 of this part, the following minor dependents in the 
Republic of Panama are authorized ``space-required tuition-free'' 
status:
    (i) Minor dependents of host-nation or third-country citizens 
employed by the Department of Defense and paid from appropriated funds, 
provided that such dependents were enrolled on a tuition-free basis in 
schools operated by the former Canal Zone Government on September 30, 
1979, as then authorized for residents of the former Canal Zone. This 
provision applies only for uninterrupted enrollments.
    (ii) Minor dependents of host-nation or third-country citizen 
employees transferred to the Department of Defense on October 1, 1979, 
and paid from appropriated funds may attend approved non-DoD dependents 
schools in the Republic of Panama at U.S. Government expense when such 
dependents were enrolled in a non-DoD dependents school under the 
authority and at the expense of the former Canal Zone Government/Panama 
Canal Company on September 30, 1979. This provision applies only for 
uninterrupted enrollments.
    (2) Space-required, tuition-paying education. Dependents not 
specifically authorized tuition-free education in paragraph (b)(1) of 
this section, or in Sec. 71.5 of this part, when such dependents were 
enrolled in schools operated by the former Canal Zone Government on 
September 30, 1979, regardless of affiliation or citizenship of 
sponsors. This provision applies only for uninterrupted enrollments.
    (c) Persons may be enrolled in the Panama Canal College under the 
conditions and in the priority listed below:
    (1) Tuition-paying, DoD-sponsored education. All students at the 
Panama Canal College attend on a tuition-paying basis. The Department of 
Defense may assume a portion of the tuition cost for full-time students 
who are minor dependents of:
    (i) Military DoD sponsors who are on active duty and stationed in 
the Republic of Panama.
    (ii) Civilian DoD sponsors stationed in the Republic of Panama who 
are paid from appropriated funds and who have been lawfully accorded the 
privilege of residing permanently in the United States as immigrants in 
accordance with the United States immigration laws (8 U.S.C. ``Aliens 
and Nationality'').
    (iii) Members of the Military Services who are detained by a foreign 
power or declared missing in action or otherwise unlawfully detained for 
as long as the detention or missing status continues to exist. Under 
these circumstances, authorization for the dependents to remain in the 
College with DoD tuition assistance must be obtained from DoDDS 
officials and the local military commander.
    (iv) If a sponsor discussed in paragraph (c)(1) (i), (ii), or (iii) 
of this section, is transferred, retires, or dies during the college 
semester, the sponsor's dependents may complete the current semester, 
but subsequently shall lose their eligibility to attend the Panama Canal 
College.
    (2) Tuition-paying--other. At the discretion of the Director, DoDDS, 
or designee, and when consistent with the local military commander's 
policy concerning access to the area of military coordination and 
agreements with the Republic of Panama, the following categories of 
persons may be enrolled at the Panama Canal College on a full- or part-
time basis, in the priority given

[[Page 376]]

below provided the applicant meets academic admissions requirements.
    (i) Active duty members of the Military Services who are stationed 
in Panama and family members living with them (unless authorized DoD-
sponsored education under paragraph (c)(1) of this section.
    (ii) U.S.-citizens employees of the Department of Defense and other 
U.S. Government agencies, including the Panama Canal Commission, and 
family members living with them (unless authorized DoD-sponsored 
education under paragraph (c)(1) of this section).
    (iii) Host-nation or third-country citizen employees of the Panama 
Canal Commission or other U.S. Government agency, district dentists, 
religious workers, and family members living with them, when such 
persons were enrolled in a Canal Zone school on a tuition-free basis or 
under the sponsorship of the former Canal Zone Government/Panama Canal 
Company on September 30, 1979, as was then authorized for residents of 
the former Canal Zone.
    (iv) Minor dependents of Canal Zone Government/Panama Canal Company 
host-nation or third-country citizen employees separated through 
reduction in force action and not reemployed by another U.S. Government 
agency, when such dependents were enrolled in the former Canal Zone 
school system on September 30, 1979.
    (v) U.S. citizens not specifically addressed above who reside in the 
Republic of Panama.
    (vi) Host-nation and third-country citizens not specifically 
addressed above who reside in the Republic of Panama when there is no 
objection from the government of Panama and when such inclusion does not 
displace or prevent inclusion of U.S. citizens seeking admission on the 
same basis at the same time.



PART 72--VOLUNTARY EDUCATION PROGRAMS IN OVERSEAS AREAS--Table of Contents




Sec.
72.1  Purpose.
72.2  Applicability and scope.
72.3  Responsibilities.
72.4  Procedures.
72.5  Effective date and implementation.

    Authority: Pub. L. 99-145, section 1212.

    Source: 53 FR 22648, June 17, 1988, unless otherwise noted.



Sec. 72.1  Purpose.

    This part:
    (a) Prescribes uniform procedures and assigns responsibilities for 
the Military Services to avoid the unnecessary duplication of 
postsecondary education offerings in overseas areas under Pub. L. 99-
145, section 1212 and DoD Directive 1322.8.\1\
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publication and Forms Center, Attn: Code 1052, 5801 Tabor Avenue, 
Philadelphia, PA 19120.
---------------------------------------------------------------------------

    (b) Under Pub. L. 145, section 1212:
    (1) Reflects the statutory requirement, subject to the exceptions in 
Sec. 72.1(b)(2) that no solicitation, contract, or agreement for off-
duty postsecondary education services for military members, DoD civilian 
employees, or the dependents of such military members or employees, 
other than for services at the graduate or postgraduate level, may limit 
the offering of such services or any group, category, or level of 
courses to a single academic institution.
    (2) Prescribes criteria for avoiding the unnecessary duplication of 
educational services by exercising the authority in Pub. L. 99-145 to 
grant exceptions, when required, to Sec. 72.1(b)(1).



Sec. 72.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense (OSD) and the 
Military Departments.
    (b) Shall be extended to all persons seeking or receiving off-duty 
postsecondary education services, as described in Sec. 72.1(b)(1).



Sec. 72.3  Responsibilities.

    (a) Each Overseas Theater Commander shall implement this part and 
may:
    (1) When necessary to avoid unnecessary duplication of offerings of 
postsecondary education services, authorize the issuance of 
solicitations and the execution of contracts and agreements that limit 
the provision of such offerings at one or more installations to one 
institution or a prescribed maximum number of institutions.

[[Page 377]]

    (2) Delegate the authority in Sec. 72.3(a)(1) but not below the 
level of a general or flag officer, or a civilian equivalent.



Sec. 72.4  Procedures.

    (a) Under this part, ``unnecessary duplication'' means the provision 
of education services by two or more potential offerers which, because 
of such duplication, is determined to have an adverse effect on the 
provision of the education services provided in the theater concerned, 
consistent with ensuring the maximum availability of alternative 
offerers of such services.
    (b) One or more of the following criteria must be satisfied to limit 
the number of providers of postsecondary education services:
    (1) The demographic distribution of the potential student population 
prevents the effective delivery of postsecondary education services by 
multiple offerers.
    (2) Adequate classroom and administrative space to meet education 
program needs is not available to multiple providers.
    (3) DoD educational staff needed to manage education programs at the 
installation level are not available.
    (4) The theater commander cannot provide reasonable logistic support 
to installations and persons employed in providing education programs if 
there are multiple providers. Logistic support includes supplies, 
services, facilities, transportation, privileges and other benefits 
provided to nongovernmental entities or individuals.
    (c) Where necessary, the enrollments generated at large 
installations may be used to balance the enrollments at small or remote 
locations to provide for economies of scale and to ensure availability 
of the widest range of education services possible at reasonable tuition 
rates, consistent with Sec. 72.4(a) of this part.



Sec. 72.5  Effective date and implementation.

    This part is effective May 9, 1988. Forward one copy of implementing 
documents to the Assistant Secretary of Defense (Force Management and 
Personnel) within 120 days.



PART 73--TRAINING SIMULATORS AND DEVICES--Table of Contents




Sec.
73.1  Purpose.
73.2  Applicability and scope.
73.3  Definitions.
73.4  Policy.
73.5  Responsibilities.
73.6  Procedures.
73.7  Effective date and implementation.

    Authority: 5 U.S.C. 301 and 10 U.S.C. 133.

    Source: 51 FR 35512, Oct. 6, 1986, unless otherwise noted.



Sec. 73.1  Purpose.

    This part: (a) Establishes training simulator and device 
development, acquisition, and utilization policy implementing Assistant 
Secretary of Defense memorandum dated October 5, 1984 in accordance with 
DoD Directive 5000.1,\1\ DoD Instruction 500.2,\1\ DoD Directive 
5000.3,\1\ DoD Directive 5000.39,\1\ DoD Directive 5000.19,\1\ DoD 
Instruction 7041.3,\1\ DoD 7110.1-M, and Executive Order 12344.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, ATTN: Code 301, 5801 Tabor Avenue, 
Philadelphia, PA 19120.
---------------------------------------------------------------------------

    (b) Provides guidance for establishing Service policy for training 
simulators and devices.
    (c) Authorizes the Department of Defense to use training simulators 
and devices to make training systems more effective and to help maintain 
military readiness. Emphasizes the relationship between the system(s) 
supported and the training system and supports the requirements for 
coincident development and concurrency between the system(s) supported 
and the training system. A systematically developed training system with 
appropriate training simulators, devices, and embedded training 
capability cost-effectively provides training for any given weapon or 
support system. Properly used, such training simulators and devices 
facilitate: training that might be impractical or unsafe if done with 
actual systems or equipment; concentrated practice in selected normal 
and emergency actions; the training of operators and maintainers to 
diagnose and address possible equipment faults; enhanced

[[Page 378]]

proficiency despite shortages of equipment, space, ranges, or time; 
control of life-cycle training costs; and reducing systems required in 
maintenance training.
    (d) Emphasizes that training simulators and devices are integral 
parts of an overall training system. Those training systems without 
training simulators or devices specifically are excluded from this part.



Sec. 73.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense 
(OSD) and the Military Departments, including their National Guard and 
Reserve components. The term ``Military Services,'' as used herein, 
refers to the Army, Navy, Air Force, Marine Corps, and the National 
Guard and Reserve components.
    (b) This part shall not be construed to usurp management 
prerogatives or responsibilities of the Military Departments or their 
Guard or Reserve Components.
    (c) For reporting purposes supporting acquisition review for 
training simulators or devices supporting a major system or comprising 
nonsystem training equipment, the dollar thresholds shall be those 
established in DoD 7110.1-M, part II.
    (d) When the Secretary of Defense designates any training simulator 
or device as being of significant interest based on criteria other than 
cost, the Military Service concerned shall provide the documentation 
required by this part.
    (e) The policies of this part shall be followed regardless of the 
cost of the training simulators or devices.
    (f) In accordance with the responsibilities in E.O. 12344, the 
Department of Energy (DoE) has cognizance over the development of 
training systems and devices used in the training of naval nuclear 
propulsion plant operators. Such systems and devices are not covered by 
this Directive, but are coordinated separately with DoE.



Sec. 73.3  Definitions.

    Embedded training. Training using operational equipment that 
involves simulating or stimulating of equipment performance.
    Non-system training device. A training simulator or device not 
supporting a single, specific, parent defense system.
    Training simulator and/or device. Hardware and software designed or 
modified exclusively for training purposes involving simulation or 
stimulation in its construction or operation to demonstrate or 
illustrate a concept or simulate an operational circumstance or 
environment. Under this part, training simulators and devices are 
considered part of an overall training system that may or may not be 
identified as part of a parent defense system. Under this part, the term 
training device shall apply to training simulators and devices.
    Training system. A systematically developed curriculum including, 
but not necessarily limited to, courseware; classroom aids; training 
simulators and devices; operational equipment; embedded training 
capability; and personnel to operate, maintain, or employ a system. The 
training system includes all necessary elements of logistic support.



Sec. 73.4  Policy.

    (a) General. (1) It is DoD policy to optimize the operational 
readiness of the total forces by effecting the development and 
acquisition of training devices, in accordance with DoD Directive 
5000.1. The requirement for development and acquisition of training 
devices shall be based on a Military Service's training requirements 
analysis process. The analysis shall define the training need, determine 
whether existing training devices shall satisfy the training 
requirement, and evaluate the benefits and tradeoffs of potential 
alternative training solutions. This process shall consider how 
recommended training devices shall function in the National Guard and 
Reserve environment and how they shall meet any unique National Guard 
and Reserve training needs.
    (2) All training devices supporting and unique to a major system 
acquisition should be documented and reviewed with the parent major 
system. Major system training devices shall be identified in the 
acquisition process in the Integrated Program Summary

[[Page 379]]

(IPS), in accordance with DoD Instruction 5000.2. Those training devices 
that are not included in a major system acquisition should be identified 
and justified in relation to a specific training program or course. The 
Military Services shall ensure that all development, procurement, 
operation, and support costs are programmed and funded.
    (3) These policies do not imply that a training system, simulator, 
or device must be procured from the prime contractor for the defense 
system being supported.
    (4) The acquisition of a training system that supports a new defense 
system or equipment shall be assigned the same priority as that of the 
parent system or equipment.
    (5) Those training devices dedicated to defense systems or equipment 
should be available in time for the fielding of the parent system.
    (6) These policies and the guidelines to implement them apply to 
acquisition funds from advanced development through procurement.
    (7) Joint-Services acquisition of common training devices should be 
fully considered in each Military Service's training analysis and 
planning.
    (b) Development planning guidelines. (1) Once a training device 
requirement has been established, the training device program must be 
described and documented in a Military Service's approved development 
plan (DP) or equivalent before development of the training device may 
proceed.
    (2) The DP, which documents the Military Service's training 
requirement, must integrate the proposed, specific training device 
hardware or software system being developed and acquired with the 
training system for which it is intended.
    (3) The DP shall address the following items as data become 
available:
    (i) Assessment of Training need and expected benefit from the 
training device(s).
    (ii) Description of the training device(s).
    (iii) Acquisition and modification schedule.
    (iv) Ability of the training devices to maintain or improve safety.
    (v) Course and training estimates including projected student flows 
and loads, requirements for instructors and other staff, location of 
training facilities, and other training requirements.
    (c) Acquisition guidelines. (1) Training device alternatives 
including, but not limited to, trainers, general versus specific 
devices, real equipment versus simulated equipment, and embedded 
training capability should be evaluated by the Military Service 
concerned. Where applicable, economic analyses of alternatives should be 
conducted in accordance with the methods and assumptions in DoD 
Instruction 7041.3. The evaluation of each alternative should consider 
as appropriate:
    (i) Life-cycle use versus costs.
    (ii) Trade-off with requirements for munitions, if applicable.
    (iii) Capability of the training device(s) to accommodate changes 
made to the parent defense systems based on data on minimum and maximum 
changes made over the life cycle of similar defense systems.
    (iv) Student load and curriculum changes or field application 
training changes anticipated during the life cycle.
    (2) When military specification equipment is not required to meet 
performance needs, commercial practices and equipment should be used to 
contain initial procurement and follow-on support costs. Commercially 
available training programs also deserve serious consideration.
    (3) Specifications should cover training functions, performance 
levels, and required proficiency.

    (d) Training effectiveness evaluation guidelines. Analysis of 
training capability and potential should focus on data based on actual 
experience.



Sec. 73.5  Responsibilities.

    (a) The Assistant Secretary of Defense for Force Management and 
Personnel (ASD(FM&P)) shall:
    (1) Monitor the Military Services' compliance with this part.
    (2) Designate action officers for training devices associated with 
major system acquisitions' constituting major systems in themselves, and 
non-system training devices meeting the documentation threshold. These 
action officers shall:

[[Page 380]]

    (i) Monitor the status of training devices, as assigned.
    (ii) Review Military Service-provided DPs.
    (iii) Obtain such reports and information as may be necessary in 
performing assigned functions, in accordance with DoD Directive 5000.19.
    (3) Review the Military Service's Regulations, Manuals, or 
Instructions implementing this part.
    (4) Review the Military Service's acquisition documentation to 
identify areas of potential joint applicability.
    (5) Respond to Congressional inquiries on implementation of this 
part and results achieved.
    (6) Administer a continuing review of policy on training devices, 
updating this part as necessary.
    (b) The head of each DoD component shall:
    (1) Ensure development of the Military Service's documents 
implementing this part.
    (2) Ensure that the Military Service's charters for program managers 
of all major defense system acquisitions adequately address their 
training device responsibilities, and that program managers are 
supported by training system managers.



Sec. 73.6  Procedures.

    (a) OSD oversight for training devices that support a major system 
or constitute major systems in themselves, shall be accomplished during 
the system acquisition review process. Military Service-approved DPs, 
which will evolve as data from detailed training analyses become 
available, shall be forwarded to OSD not later than the Program 
Objectives Memorandum (POM) submission in which budget year funds are 
requested for manufacture of the initial or prototype device(s), but in 
no case before the milestone listed in paragraph (1) or (2) of this 
section. Service charges to the DP shall be submitted to OSD as changes 
occur.
    (1) DPs for training devices integral to a major system acquisition 
shall be submitted to support the Decision Coordinating Paper/Integrated 
Program summary of the parent defense system by Milestone II.
    (2) For training devices designated major systems acquisitions, DPs 
shall be submitted with, or incorporated into, the System Concept Paper 
prepared for Milestone I.
    (3) For non-system training devices, DPs, shall be submitted not 
later than the POM submission in which budget year funds are requested 
for manufacture of the prototype or the first device.
    (b) Training Effectiveness Evaluation Plan (TEEP). (1) The Training 
Effectiveness Evaluation Plan shall be developed as applicable with 
regard to DoD Directive 5000.3 to ensure that acquired training devices 
meet the Military Service's training requirements and effectiveness 
levels. The TEEP shall describe the Service's plan to accomplish 
training effectiveness evaluations, to the extent the Services deem 
appropriate, for training devices associated with each major defense 
system acquisition, training devices constituting major systems in 
themselves or non-system training devices that meet the threshold 
described in Sec. 73.2 of this section.
    (2) The TEEP should document the planned evaluation of the training 
functions, performance levels, and proficiency requirements incorporated 
in the specifications. The TEEP should be approved by the sponsoring 
Service at least 6 months before the planned commencement of training 
effectiveness evaluation.
    (3) For training devices not meeting thresholds described in 
Sec. 73.2 of this part, the Military Servcies are encouraged to prepare, 
approve, and support a TEEP at least 6 months before the planned 
commencement of training effectiveness evaluation.



Sec. 73.7  Effective date and implementation.

    This part is effective August 22, 1986. Forward one copy of each 
implementing document to the Assistant Secretary of Defense (Force 
Management and Personnel). Management reports and information specified 
herein shall be submitted for training devices reaching the stated 
milestones beginning with FY 87 as required by the ASD memorandum. 
Requirements shall be waived on a case-by-case basis for

[[Page 381]]

training devices for which this implementation date shall cause 
inordinate cost of manpower expenditures.



PART 74--APPOINTMENT OF DOCTORS OF OSTEOPATHY AS MEDICAL OFFICERS--Table of Contents




Sec.
74.1  Purpose.
74.2  Policy.

    Authority: 10 U.S.C. 3294, 5574, 8294.

    Source: 25 FR 14370, Dec. 31, 1960, unless otherwise noted.



Sec. 74.1  Purpose.

    The purpose of this part is to implement the provisions of Pub. L. 
763, 84th Congress (70 Stat. 608), relating to the appointment of 
doctors of osteopathy as medical officers.



Sec. 74.2  Policy.

    In the interest of obtaining maximum uniformity, the following 
criteria are established for the appointment of doctors of osteopathy as 
medical officers:
    (a) To be eligible for appointment as Medical Corps officers in the 
Army and Navy or designated as medical officers in the Air Force, a 
doctor of osteopathy must:
    (1) Be a citizen of the United States;
    (2) Be a graduate of a college of osteopathy whose graduates are 
eligible for licensure to practice medicine or surgery in a majority of 
the States, and be licensed to practice medicine, surgery, or osteopathy 
in one of the States or Territories of the United States or in the 
District of Columbia;
    (3) Possess such qualifications as the Secretary concerned may 
prescribe for his service, after considering the recommendations for 
such appointment by the Surgeon General of the Army or the Air Force or 
the Chief of the Bureau of Medicine and Surgery of the Navy;
    (4) Have completed a minimum of three years college work prior to 
entrance into a college of osteopathy;
    (5) Have completed a four-year course with a degree of Doctor of 
Osteopathy from a school of osteopathy approved by the American 
Osteopathic Association; and
    (6) Have had subsequent to graduation from an approved school of 
osteopathy 12 months or more of intern or residency training approved by 
the American Osteopathic Association.
    (b) [Reserved]



PART 75--CONSCIENTIOUS OBJECTORS--Table of Contents




Sec.
75.1  Purpose.
75.2  Applicability and scope.
75.3  Definitions.
75.4  Policy.
75.5  Criteria.
75.6  Procedure.
75.7  Action after decision.
75.8  Claims of erroneous induction.
75.9  Required information to be supplied by applicants for discharge or 
          noncombatant service.
75.10  Statement (counseling concerning Veterans Administration 
          benefits).
75.11  Statement (counseling concerning designation as conscientious 
          objector).

    Authority: Sec. 552 of title 5, United States Code.

    Source: 36 FR 22231, Nov. 23, 1971, unless otherwise noted.



Sec. 75.1  Purpose.

    This part updates uniform Department of Defense procedures governing 
conscientious objectors and processing requests for discharge based on 
conscientious objection.



Sec. 75.2  Applicability and scope.

    The provisions of this part apply to the military departments and 
govern the personnel of the Army, Navy, Air Force, and Marine Corps and 
all Reserve components thereof.



Sec. 75.3  Definitions.

    (a) Conscientious objection--General. A firm, fixed and sincere 
objection to participation in war in any form or the bearing of arms, by 
reason of religious training and belief.
    (1) Class 1-O conscientious objector. A member, who, by reason of 
conscientious objection, sincerely objects to participation of any kind 
in war in any form.
    (2) Class 1-A-O conscientious objector. A member who, by reason of 
conscientious objection, sincerely objects to participation as a 
combatant in war in

[[Page 382]]

any form, but whose convictions are such as to permit military service 
in a noncombatant status.

Unless otherwise specified, the term ``conscientious objector'' includes 
both 1-O and 1-A-O conscientious objectors.
    (b) Religious training and belief. Belief in an external power or 
being or deeply held moral or ethical belief, to which all else is 
subordinate or upon which all else is ultimately dependent, and which 
has the power or force to affect moral well-being. The external power or 
being need not be of an orthodox deity, but may be a sincere and 
meaningful belief which occupies in the life of its possessor a place 
parallel to that filled by the God of another, or, in the case of deeply 
held moral or ethical beliefs, a belief held with the strength and 
devotion of traditional religious conviction. The term ``religious 
training and belief'' may include solely moral or ethical beliefs even 
though the applicant himself may not characterize these beliefs as 
``religious'' in the traditional sense, or may expressly characterize 
them as not religious. The term ``religious training and belief'' does 
not include a belief which rests solely upon considerations of policy, 
pragmatism, expediency, or political views.
    (c) Noncombatant service or noncombatant duties (1-A-O) (used 
interchangeably herein). (1) Service in any unit of the Armed Forces 
which is unarmed at all times.
    (2) Service in the medical department of any of the Armed Forces, 
wherever performed.
    (3) Any other assignment the primary function of which does not 
require the use of arms in combat provided that such other assignment is 
acceptable to the individual concerned and does not require him to bear 
arms or to be trained in their use.
    (4) Service aboard an armed ship or aircraft or in a combat zone 
shall not be considered to be combatant duty unless the individual 
concerned is personally and directly involved in the operation of 
weapons.
    (d) Noncombatant training. Any training which is not concerned with 
the study, use or handling of arms or weapons.



Sec. 75.4  Policy.

    (a) Administrative discharge prior to the completion of an obligated 
term of service is discretionary with the military service concerned, 
based on a judgment of the facts and circumstances in the case. However, 
insofar as may be consistent with the effectiveness and efficiency of 
the military services, a request for classification as a conscientious 
objector and relief from or restriction of military duties in 
consequence thereof will be approved to the extent practicable and 
equitable within the following limitations:
    (1) Except as provided in paragraph (a)(2) of this section, no 
member of the Armed Forces who possessed conscientious objection beliefs 
before entering military service is eligible for classification as a 
conscientious objector if
    (i) (a) Such beliefs satisfied the requirements for classification 
as a conscientious objector pursuant to section 6(j) of the Universal 
Military Training and Service Act, as amended (50 U.S.C. App. 456(j)) 
and other provisions of law, and (b) he failed to request classification 
as a conscientious objector by the Selective Service System; or
    (ii) (a) He requested classification as a conscientious objector 
before entering military service, and (b) such request was denied on the 
merits by the Selective Service System, and (c) his request for 
classification as a conscientious objector is based upon essentially the 
same grounds, or supported by essentially the same evidence, as the 
request which was denied by the Selective Service System.
    (2) Nothing contained in this part renders ineligible for 
classification as a conscientious objector a member of the Armed Forces 
who possessed conscientious objector beliefs before entering military 
service if (i) such beliefs crystalized after receipt of an induction 
notice; and (ii) he could not request classification as a conscientious 
objector by the Selective Service System because of Selective Service 
System regulations prohibiting the submission of such requests after 
receipt of induction notice.

[[Page 383]]

    (b) Because of the personal and subjective nature of conscientious 
objection, the existence, honesty, and sincerity of asserted 
conscientious objection beliefs cannot be routinely ascertained by 
applying inflexible objective standards and measurements on an ``across-
the-board'' basis. Requests for discharge or assignment to noncombatant 
training or service based on conscientious objection will, therefore, be 
handled on an individual basis with final determination made at the 
headquarters of the military service concerned in accordance with the 
facts and circumstances in the particular case and the policy and 
procedures set forth herein.



Sec. 75.5  Criteria.

    General. The criteria set forth herein provide policy and guidance 
in considering applications for separation or for assignment to 
noncombatant training and service based on conscientious objection.
    (a) Consistent with the national policy to recognize the claims of 
bona fide conscientious objectors in the military service, an 
application for classification as a conscientious objector may be 
approved (subject to the limitations of Sec. 75.4(a)) for any 
individual:
    (1) Who is conscientiously opposed to participation in war in any 
form;
    (2) Whose opposition is founded on religious training and beliefs; 
and
    (3) Whose position is sincere and deeply held.
    (b) War in any form: The clause ``war in any form'' should be 
interpreted in the following manner:
    (1) An individual who desires to choose the war in which he will 
participate is not a conscientious objector under the law. His objection 
must be to all wars rather than a specific war;
    (2) A belief in a theocratic or spiritual war between the powers of 
good and evil does not constitute a willingness to participate in 
``war'' within the meaning of this part.
    (c) Religious training and belief: (1) In order to find that an 
applicant's moral and ethical beliefs are against participation in war 
in any form and are held with the strength of traditional religious 
convictions, the applicant must show that these moral and ethical 
convictions, once acquired, have directed his life in the way 
traditional religious convictions of equal strength, depth and duration 
have directed the lives of those whose beliefs are clearly found in 
traditional religious convictions. In other words, the belief upon which 
conscientious objection is based must be the primary controlling force 
in the applicant's life.
    (2) A primary factor to be considered is the sincerity with which 
the belief is held. Great care must be exercised in seeking to determine 
whether asserted beliefs are honestly and genuinely held. Sincerity is 
determined by an impartial evaluation of the applicant's thinking and 
living in its totality, past and present. Care must be exercised in 
determining the integrity of belief and the consistency of application. 
Information presented by the claimant should be sufficient to convince 
that the claimant's personal history reveals views and actions strong 
enough to demonstrate that expediency or avoidance of military service 
is not the basis of his claim.
    (i) Therefore, in evaluating applications the conduct of applicants, 
in particular their outward manifestation of the beliefs asserted, will 
be carefully examined and given substantial weight.
    (ii) Relevant factors that should be considered in determining an 
applicant's claim of conscientious objection include: Training in the 
home and church; general demeanor and pattern of conduct; participation 
in religious activities; whether ethical or moral convictions were 
gained through training, study, contemplation, or other activity 
comparable in rigor and dedication to the processes by which traditional 
religious convictions are formulated; credibility of the applicant; and 
credibility of persons supporting the claim.
    (iii) Particular care must be exercised not to deny the existence of 
bona fide beliefs simply because those beliefs are incompatible with 
one's own.
    (a) Church membership or adherence to particular theological tenets 
are not required to warrant separation or assignment to noncombatant 
training and service for conscientious objectors.

[[Page 384]]

    (b) Mere affiliation with a church or other group which advocates 
conscientious objection as a tenet of its creed is not necessarily 
determinative of an applicant's position or belief.
    (c) Conversely, affiliation with a church or group which does not 
teach conscientious objection does not necessarily rule out adherence to 
conscientious objection beliefs in any given case.
    (d) Where an applicant is or has been a member of a church, 
religious organization, or religious sect, and where his claim of 
conscientious objection is related to such membership, inquiry may 
properly be made as to the fact of membership, and the teaching of the 
church, religious organization, or religious sect, as well as the 
applicant's religious activity. However, the fact that the applicant may 
disagree with, or not subscribe to, some of the tenets of his church 
does not necessarily discredit his claim. The personal convictions of 
each individual will be controlling so long as they derive from his 
moral, ethical or religious beliefs.
    (e) Moreover, an applicant who is otherwise eligible for 
conscientious objector status may not be denied that status simply 
because his conscientious objection influences his views concerning the 
Nation's domestic or foreign policies. The task is to decide whether the 
beliefs professed are sincerely held, and whether they govern the 
claimant's actions in both word and deed.
    (d) The burden of establishing a claim of conscientious objection as 
a ground for separation or assignment to noncombatant training and 
service is on the applicant. To this end, he must establish by clear and 
convincing evidence: (1) That the nature or basis of his claim comes 
within the definition of and criteria prescribed herein for 
conscientious objection, and (2) that his belief in connection therewith 
is honest, sincere and deeply held. The claimant has the burden of 
determining and setting forth the exact nature of his request, i.e., 
whether for separation based on conscientious objection (1-O) or for 
assignment to noncombatant training and service based on conscientious 
objection (1-A-O).
    (e) An applicant claiming 1-O status shall not be granted 1-A-O 
status as a compromise.
    (f) Persons who were classified 1-A-O by Selective Service prior to 
induction shall upon induction be transferred to a training center, or 
station, for recruit training, and shall be subject to noncombatant 
service or training. They will be required to sign and date a statement 
as set forth in the form in Sec. 75.11. Thereafter, upon completion of 
recruit training, they shall be assigned to noncombatant duty. They may 
be transferred to the medical corps, or a medical department or unit for 
further training, provided they meet the requirements therefor. Such 
persons when assigned to medical units will not be allowed to avoid the 
important or hazardous duties which are part of the responsibility of 
all members of the medical organization. Any person who does not meet 
the requirements for this training, who fails to complete the prescribed 
course of instruction, or who otherwise cannot be assigned to this duty 
will be assigned to other noncombatant duties.
    (g) Commanders at levels directed by the service headquarters are 
authorized to return to an applicant, without action, any second or 
subsequent application that is based upon essentially the same grounds, 
or supported by essentially the same evidence, as a previous application 
disapproved by the military service concerned.
    (h) The provisions of this part will not be used to effect the 
administrative separation of individuals who do not qualify as 
conscientious objectors, or in lieu of administrative separation 
procedures such as those provided for unsuitability or unfitness or as 
otherwise set forth in part 41 of this title. Individuals determined not 
qualified for conscientious objector status, but the separation of whom 
would otherwise appear to be in the best interest of the Armed Forces, 
should be considered for administrative separation under the provisions 
of part 41 of this title. Under no circumstances will administrative 
separation of these individuals be effected pursuant to this part.
    (i) Nothing in this part prevents the administrative elimination, 
pursuant to law and regulations of the military

[[Page 385]]

department concerned, of any officer whose classification as a 1-A-O 
conscientious objector results in substandard performance of duty or 
other cause for elimination.



Sec. 75.6  Procedure.

    (a) A member of the Armed Forces who seeks either separation or 
assignment to noncombatant duties by reason of conscientious objection 
will submit an application therefor. The applicant will indicate whether 
he is seeking a discharge or assignment to noncombatant duties and will 
include the following terms:
    (1) The personal information required by Sec. 75.9.
    (2) Any other items which the applicant desires to submit in support 
of his case.
    (b) Prior to processing the application of the individual, he will 
be (1) advised of the specific provisions of section 3103 of title 38, 
United States Code \1\ regarding the possible effects of discharge as a 
conscientious objector who refuses to perform military duty or refused 
to wear the uniform or otherwise to comply with lawful orders of 
competent military authority, and (2) required to execute the statement 
in Sec. 75.10.
---------------------------------------------------------------------------

    \1\ 38 U.S.C. 3103 provides, in pertinent part, that the discharge 
of any person on the grounds that he was a conscientious objector who 
refused to perform military duty or refused to wear the uniform or 
otherwise to comply with lawful orders of competent military authority, 
shall bar all rights (except government insurance) of such persons under 
law administered by the Veterans' Administration based upon the period 
of service from which discharged or dismissed. The only exception is in 
cases in which it is established, to the satisfaction of the 
Administrator, that the member was insane.
---------------------------------------------------------------------------

    (c) The applicant shall be personally interviewed by a chaplain who 
shall submit a written opinion as to the nature and basis of the 
applicant's claim, and as to the applicant's sincerity and depth of 
conviction. The chaplain's report shall include the reasons for his 
conclusions. In addition, the applicant will be interviewed by a 
psychiatrist (or by a medical officer if a psychiatrist is not 
reasonably available) who shall submit a written report of psychiatric 
evaluation indicating the presence or absence of any psychiatric 
disorder which would warrant treatment or disposition through medical 
channels, or such character or personality disorder as to warrant 
recommendation for appropriate administrative action. This opinion and 
report will become part of the case file. If the applicant refuses to 
participate or is uncooperative or unresponsive in the course of the 
interview, this fact will be included in the statement and report filed 
by the chaplain and psychiatrist or medical officer.
    (d) Commanders at levels directed by the Service Headquarters will 
appoint an officer in the grade of O-3 or higher to investigate the 
applicant's claim. The officer so appointed will not be an individual in 
the chain of command of the applicant. If the applicant is a 
commissioned officer, the investigating officer must be senior in both 
temporary and permanent grades to the applicant.
    (1) Upon appointment, the investigating officer will review the 
applicable service regulations which implement this part. During the 
course of his investigation, the investigating officer will obtain all 
necessary legal advice from the local Staff Judge Advocate or legal 
officer.
    (2) The investigating officer will conduct a hearing on the 
application. The purpose of the hearing is: To afford the applicant an 
opportunity to present evidence he desires in support of his 
application; to enable the investigating officer to ascertain and 
assemble all relevant facts; to create a comprehensive record; and to 
facilitate an informed recommendation by the investigating officer and 
an informed decision on the merits by higher authority. In this regard, 
any failure or refusal of the applicant to submit to questioning under 
oath or affirmation before the investigating officer may be considered 
by the officer making his recommendation and evaluation of the 
applicant's claim. If the applicant fails to appear at the hearing 
without good cause, the investigating officer may proceed in his absence 
and the applicant will be deemed to have waived his appearance.
    (i) If the applicant desires, he shall be entitled to be represented 
by counsel,

[[Page 386]]

at his own expense, who shall be permitted to be present at the 
hearings, assist the applicant in the presentation of his case, and 
examine all items in the file.
    (ii) The hearing will be informal in character and will not be 
governed by the rules of evidence employed by courts-martial except that 
all oral testimony presented shall be under oath or affirmation. Any 
relevant evidence may be received. Statements obtained from persons not 
present at the hearing need not be made under oath or affirmation. The 
hearing is not an adversary proceeding.
    (iii) The applicant may submit any additional evidence that he 
desires (including sworn or unsworn statements) and present any 
witnesses in his own behalf, but he shall be responsible for securing 
their attendance. The installation or local commander will render all 
reasonable assistance in making available military members of his 
command requested by the applicant as witnesses. Further, the applicant 
will be permitted to question any other witnesses who appear and to 
examine all items in the file.
    (iv) A verbatim record of the hearing is not required. If the 
applicant desires such a record and agrees to provide it at his own 
expense, he may do so. If he elects to provide such a record, he shall 
make a copy thereof available to the investigating officer, at no 
expense to the Government, at the conclusion of the hearing. In the 
absence of a verbatim record, the investigating officer will summarize 
the testimony of witnesses and permit the applicant or his counsel to 
examine the summaries and note for the record their differences with the 
investigating officer's summary. Copies of statements and other 
documents received in evidence will be made a part of the hearing 
record.
    (3) At the conclusion of the investigation, the investigating 
officer will prepare a written report which will contain the following:
    (i) A statement as to whether the applicant appeared, whether he was 
accompanied by counsel, and, if so, the latter's identity, and whether 
the nature and purpose of the hearing were explained to the applicant 
and understood by him.
    (ii) Any documents, statements and other material received during 
the investigation.
    (iii) Summaries of the testimony of the witnesses presented (or a 
verbatim record of the testimony if such record was made).
    (iv) A statement of the investigating officer's conclusions as to 
the underlying basis of the applicant's conscientious objection and the 
sincerity of the applicant's beliefs, including his reasons for such 
conclusions.
    (v) Subject to Sec. 75.5(e), the investigating officer's 
recommendations for disposition of the case, including his reasons 
therefor. The actions recommended will be limited to the following:
    (a) Denial of any classification as a conscientious objector; or
    (b) Classification as 1-A-O conscientious objector; or
    (c) Classification as 1-O conscientious objector.
    (vi) The investigating officer's report, along with the individual's 
application, all interviews with chaplains or doctors, evidence received 
as a result of the investigating officer's hearing, and any other items 
submitted by the applicant in support of his case will constitute the 
record. The investigating officer's conclusions and recommended 
disposition will be based on the entire record and not merely on the 
evidence produced at the hearings. A copy of the record will be 
furnished to the applicant at the time it is forwarded to the commander 
who appointed the investigating officer, and the applicant will be 
informed that he has the right to submit a rebuttal to the report within 
the time prescribed by the military service concerned.
    (e) The record of the case will be forwarded to the headquarters of 
the officer who appointed the investigating officer where it shall be 
reviewed for completeness and legal sufficiency. If necessary, the case 
may be returned to the investigating office for further investigation. 
When the record is complete, the authority who appointed the 
investigating officer shall forward it with his personal recommendation 
for disposition, and the reasons therefor,

[[Page 387]]

through the appropriate chain of command to headquarters of the military 
service concerned.
    (f) The headquarters of the military service concerned will make a 
final decision based on the entire record. Any additional information 
other than the official service record of the applicant considered by 
the headquarters of the military service concerned which is adverse to 
the applicant, and which the applicant has not had an opportunity to 
comment upon or refute, will be made a part of the record and the 
applicant shall be given an opportunity to comment upon or refute the 
material before a final decision is made. The reasons for an adverse 
decision will be made a part of the record and will be provided to the 
individual.
    (g) Processing of applications need not be abated by the 
unauthorized absence of the applicant subsequent to the initiation of 
the application, or by the institution of disciplinary action or 
administrative separation proceedings against him. However, an applicant 
whose request for classification as a conscientious objector has been 
approved will not be discharged until all disciplinary action has been 
resolved.
    (h) To the extent practicable under the circumstances, during the 
period applications are being processed and until a decision is made by 
the headquarters of the service concerned, every effort will be made to 
assign applicants to duties within the command to which they are 
assigned which will conflict as little as possible with their asserted 
beliefs. However, members desiring to file application who are on orders 
for reassignment may be required by the military service concerned to 
submit applications at their next permanent duty station. During the 
period applications are being processed, applicants will be expected to 
conform to the normal requirements of military service and to perform 
satisfactorily such duties to which they are assigned. Applicants may be 
disciplined for violations of the Uniform Code of Military Justice while 
awaiting action on their applications.



Sec. 75.7  Action after decision.

    (a) Applicants requesting discharge who are determined to be 1-O 
conscientious objectors by the headquarters of the service concerned 
will be discharged for the convenience of the Government with entry in 
personnel records and discharge papers that the reason for separation is 
conscientious objection. The type of discharge issued will be governed 
by the applicant's general military record and the pertinent provisions 
of part 41 of this title. The Director of the Selective Service System 
will be promptly notified of the discharge of those who have served less 
than one hundred and eighty (180) days in the Armed Forces. Pending 
separation, the applicant will continue to be assigned duties providing 
the minimum practicable conflict with his professed beliefs and will be 
expected to conform to the normal requirements of military service and 
to perform satisfactorily such duties to which he is assigned. 
Applicants may be disciplined for violations under the Uniform Code of 
Military Justice while awaiting discharge.
    (b) Applicants requesting assignment to noncombatant duties who are 
determined to be class 1-A-O conscientious objectors by the military 
department shall be (1) assigned to noncombatant duty as defined in 
Sec. 75.3, or (2) discharged from military service or released from 
active duty, at the discretion of the military department. Each 
applicant will be required to execute the statement in Sec. 75.11.
    (c) Persons who are assigned to noncombatant duties, and persons who 
are assigned to normal military duties by reason of disapproval of their 
applications, will be expected to conform to the normal requirements of 
military service and to perform satisfactorily such duties to which they 
are assigned. Violations of the Uniform Code of Military Justice by 
these members will be treated as in any other situation.



Sec. 75.8  Claims of erroneous induction.

    (a) This section applies to any individual who claims that he is a 
conscientious objector and was either erroneously inducted, or 
erroneously assigned to combatant training or duty, for any of the 
following reasons:
    (1) Although determined to be a conscientious objector by a local 
board or

[[Page 388]]

appellate agency of the Selective Service System, his records failed to 
reflect classification as such.
    (2) He was denied a significant procedural right in the 
classification process by the Selective Service System.
    (3) Despite actual classification as a conscientious objector 
properly reflected in his records, he was nevertheless erroneously 
inducted, or assigned to combatant training or duty.

Claims based on alleged erroneous determinations made on the merits of 
the case by the Selective Service System are not covered by this 
section. (See Sec. 75.4.)
    (b) Claims covered by paragraph (a) of this section will be referred 
to the Selective Service System without delay for investigation and 
ascertainment of the facts. Communication will be transmitted to the 
National Headquarters, Selective Service System, Washington, DC 20435.
    (1) If the Selective Service System advises that induction was in 
fact erroneous under paragraph (a)(1) or (a)(3) of this section, the 
claimant will be separated or assigned to noncombatant duties depending 
upon whether he was classified 1-O or 1-A-O.
    (2) If the Selective Service System advises that there was in fact a 
denial of a right or a significant procedural error in the evaluation of 
a claim under paragraph (a)(2) of this section, the induction will be 
considered erroneous and the individual discharged.
    (3) If the Selective Service System advises that any claim under 
paragraph (a) of this section is unfounded or makes a final 
determination adverse to any claim, the claimant will be so informed and 
returned to general duty.
    (c) Pending investigation and resolution of all claims covered by 
this section, a claimant will be assigned to duties which conflict as 
little as practicable with his asserted beliefs, insofar as is 
consistent with the effectiveness and efficiency of the military forces.



Sec. 75.9  Required information to be supplied by applicants for discharge or noncombatant service.

    Each person seeking release from active service from the Armed 
Forces, or assignment to noncombatant duties, as a conscientious 
objector, will provide the information indicated below as the minimum 
required for consideration of his request. This in no way bars the 
military departments from requiring such additional information as they 
desire. The individual may submit such other information as desired.
    (a) General information concerning applicant. (1) Full name.
    (2) Military serial number; and social security account number.
    (3) Selective service number.
    (4) Service address.
    (5) Permanent home address.
    (6) Name and address of each school and college attended (after age 
16) together with the dates of attendance, and the type of school 
(public, church, military, commercial, etc.).
    (7) A chronological list of all occupations, positions, jobs, or 
types of work, other than as a student in school or college (after age 
16) whether for monetary compensation or not. Include the type of work, 
name of employer, address of employer and the from/to date for each 
position or job held.
    (8) All former addresses (after age 16) and dates of residence at 
those addresses.
    (9) Parents' names and addresses. Indicate whether they are living 
or deceased.
    (10) The religious denomination or sect of both parents.
    (11) Was application made to the Selective Service System (local 
board) for classification as a conscientious objector prior to entry 
into the Armed Forces? To which local board? What decision was made by 
the Board, if known?
    (12) When the applicant has served less than one hundred and eighty 
(180) days in the military service, a statement by him as to whether he 
is willing to perform work under the selective service civilian work 
program for conscientious objectors, if discharged as a conscientious 
objector. Also, a statement of the applicant as to whether he consents 
to the issuance of an order for such work by his local Selective Service 
Board.
    (b) Training and belief. (1) A description of the nature of the 
belief which

[[Page 389]]

requires the applicant to seek separation from the military service or 
assignment to noncombatant training and duty for reasons of conscience.
    (2) An explanation as to how his beliefs changed or developed, to 
include an explanation as to what factors (how, when and from whom or 
from what source training received and belief acquired) caused the 
change in or development of conscientious objection beliefs.
    (3) An explanation as to when these beliefs became incompatible with 
military service, and why.
    (4) An explanation as to the circumstances, if any, under which the 
applicant believes in the use of force, and to what extent, under any 
foreseeable circumstances.
    (5) An explanation as to how the applicant's daily lifestyle has 
changed as a result of his beliefs and what future actions he plans to 
continue to support his beliefs.
    (6) An explanation as to what in applicant's opinion most 
conspicuously demonstrates the consistency and depth of his beliefs 
which gave rise to his claim.
    (c) Participation in organizations. (1) Information as to whether 
applicant has ever been a member of any military organization or 
establishment before entering upon his present term of service. If so, 
the name and address of such organization will be given together with 
reasons why he became a member.
    (2) A statement as to whether applicant is a member of a religious 
sect or organization. If so, the statement will show the following:
    (i) The name of the sect, and the name and location of its governing 
body or head, if known.
    (ii) When, where, and how the applicant became a member of said sect 
or organization.
    (iii) The name and location of any church, congregation or meeting 
which the applicant customarily attends, and the extent of the 
applicant's active participation therein.
    (iv) The name, title, and present address of the pastor or leader of 
such church, congregation or meeting.
    (v) A description of the creed or official statements, if any, and 
if they are known to him, of said religious sect or organization in 
relation to participation in war.
    (3) A description of applicant's relationships with and activities 
in all organizations with which he is or has been affiliated, other than 
military, political, or labor organizations.
    (d) References. Any additional information, such as letters of 
reference or official statements of organizations to which the applicant 
belongs or refers in his application, that the applicant desires to be 
considered by the authority reviewing his application. The burden is on 
the applicant to obtain and forward such information.



Sec. 75.10  Statement (counseling concerning Veterans Administration benefits).

    I have been advised of the provisions of 38 U.S.C. 3103 concerning 
possible nonentitlement to benefits administered by the Veterans 
Administration due to discharge from the military service as a 
conscientious objector under certain conditions. I understand that a 
discharge as a conscientious objector, who refused to perform military 
duty or otherwise to comply with lawful orders of competent military 
authority, shall bar all rights, based upon the period of service from 
which discharged, under any laws administered by the Veterans 
Administration except my legal entitlement (if any) to any war risks, 
government (converted) or National Service Life Insurance.



Sec. 75.11  Statement (counseling concerning designation as conscientious objector).

    I have been counseled concerning designation as a conscientious 
objector. Based on my religious training and belief, I consider myself 
to be a conscientious objector within the meaning of the statute and 
regulations governing conscientious objectors and am conscientiously 
opposed to participation in combatant training and service. I request 
assignment to noncombatant duties for the remainder of my term of 
service. I fully understand that on expiration of my current term of 
service I am not eligible for voluntary enlistment, reenlistment, or 
active service in the Armed Forces.



PART 76--MOBILIZATION OF THE READY RESERVE--Table of Contents




Sec.
76.1  Reissuance and purpose.
76.2  Applicability and scope.
76.3  Definitions.

[[Page 390]]

76.4  Legal authority.
76.5  Policy.
76.6  Mobilization procedures.
76.7  Responsibilities.

    Authority: Sec. 280, 70A Stat. 14; 10 U.S.C. 280.

    Source: 51 FR 44462, Dec. 10, 1986, unless otherwise noted.



Sec. 76.1  Reissuance and purpose.

    This part reissues 32 CFR part 76 and establishes DoD policy for 
planning and procedures for executing mobilization of the Ready Reserve, 
in compliance with DoD Master Mobilization Plan (MMP), June 26, 1982.



Sec. 76.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense (OSD); the 
Military Departments and the Coast Guard (by agreement with the 
Department of Transportation) including the National Guard and Reserve 
Components; the Organization of the Joint Chiefs of Staff (OJCS); and 
the Defense Agencies.
    (b) Applies to all mobilization of the Ready Reserve. The Ready 
Reserve comprises units and individuals liable for involuntary order to 
active duty under sections 672 and 673.
    (c) Does not cover the ordering or calling of National Guard units 
or individuals to duty while under control of State Governments.
    (d) Does not cover the involuntary ordering of Coast Guard Reserve 
units or individuals to active duty in response to domestic emergencies 
while under the Secretary of Transportation.



Sec. 76.3  Definitions.

    Activation. Order to active duty (other than for training) in the 
Federal service.
    Active Guard/Reserve (AGR) Personnel. National Guard and Reserve 
members on full-time duty for the purpose of organizing, administering, 
recruiting, instructing, or training the National Guard and Reserve 
Components and who are paid from the reserve personnel appropriations of 
the Military Departments.
    F-hour. The effective time of an announcement by the Secretary 
concerned of a decision to mobilize reserve units.
    M-day. The day on which mobilization commences or is due to 
commence.
    Military technicians. Dual status Federal civilian employees of a 
Military Department who are assigned to provide support to the National 
Guard or Reserve Components and are concurrently members in the Selected 
Reserve of the organization they support.
    Mobilization. The process by which the Armed Forces or part of them 
are brought to a state of readiness for war or other national emergency. 
This includes activating all or part of the Reserve Components as well 
as assembling and organizing personnel, supplies, and material. 
Mobilization of the Armed Forces includes but is not limited to the 
following categories.
    (1) Full mobilization. Expansion of the active Armed Forces 
resulting from action by Congress and the President to mobilize all 
Reserve Component units in the existing approved force structure, all 
individual reservists, retired military personnel, and the resources 
needed for their support to meet the requirements of a war or other 
national emergency involving an external threat to the national 
security.
    (2) Partial mobilization. Expansion of the active Armed Forces 
resulting from action by Congress (up to full mobilization) or by the 
President (not more than 1,000,000) to mobilize Ready Reserve Component 
units, Individual Ready Reservists, and the resources needed for their 
support to meet the requirements of a war or other national emergency 
involving an external threat to the national security.
    (3) Selective mobilization. Expansion of the active Armed Forces 
resulting from action by Congress and/or the President to mobilize 
Reserve Component units, Individual Ready Reservists, and the resources 
needed for their support to meet the requirements of a domestic 
emergency that is not the result of an enemy attack.
    (4) Total mobilization. Expansion of the active Armed Forces 
resulting from action by Congress and the President to organize and/or 
generate additional units or personnel, beyond the existing

[[Page 391]]

force structure, and the resources needed for their support, to meet the 
total requirement of a war or other national emergency involving an 
external threat to the national security.
    Ready Reserve. Organized in units or as individuals, members of the 
Ready Reserve are liable for order to active duty to augment the active 
forces in time of war or national emergency. The Ready Reserve consists 
of the Selected Reserve, the Individual Ready Reserve and the Inactive 
National Guard.
    (1) Inactive National Guard (ING). The ING consists of personnel of 
the Army National Guard Ready Reserve who are in an inactive status. The 
term is not applicable to the Air National Guard. ING members are 
attached to National Guard units, but do not participate in training 
activities. Upon mobilization, they would mobilize with their units. To 
remain members of the ING, such personnel must muster once a year with 
the assigned unit. In accordance with 32 CFR part 4, ING personnel are 
in reserve training category II.
    (2) Individual Ready Reserve (IRR). The IRR is a manpower pool 
principally consisting of individuals who have had training and have 
previously served in the active forces or in the Selected Reserve. The 
IRR consists of obligors and non-obligors who have fulfilled their 
military service obligation. IRR members are liable for involuntary 
active duty for training and fulfillment of mobilization requirements in 
accordance with title 10, U.S. Code, section 673. In addition, the IRR 
also includes some personnel who are participating in officer training 
programs or in the Armed Forces Health Scholarship Program. All IRR 
members are in an active status. In accordance with part 4 of this 
title, IRR members include reserve training categories RE, RH, RJ, and 
RK.
    Selected Reserve. The Selected Reserve consists of those units and 
individuals within the Ready Reserve designated by their respective 
services and approved by the Joint Chiefs of Staff as so essential to 
initial wartime missions that they have priority over all other 
reserves. The Selected Reserve consists of subcategories defined as 
follows:
    (1) Individual Mobilization Augmentees (IMAs). Individual members of 
the Selected Reserve not assigned to a Reserve Component unit. These 
reservists are trained and preassigned to an active force organization, 
Selective Service, or Federal Emergency Management Agency billet that 
must be filled on or shortly after mobilization. IMAs participate in 
training activities on a part-time basis in preparation for 
mobilization. In accordance with 32 CFR part 4 trained individuals 
include reserve training categories TB, TR, and TW.
    (2) Selected Reserve units. Units manned and equipped to serve and/
or train as operational or augmentation units. Operational units train 
and serve as units. Augmentation units train as a unit but lose their 
unit identity when mobilized, being subsumed into an active unit or 
activity. Selected Reserve units include trained unit members who 
participate in unit training activities, and Full-Time Support (FTS) 
personnel in the Active Guard/Reserve and Military Technicians. In 
accordance with 32 CFR part 4 members of Selected Reserve units include 
reserve training categories SA, SG, SH, and ST.
    (3) Training pipeline. Selected Reserve personnel who have not yet 
completed initial active duty training or are awaiting initial active 
duty training. In accordance with 32 CFR part 4 those in the training 
pipeline include reserve training categories UF, UP, UQ, and UX.



Sec. 76.4  Legal authority.

    Title 10 U.S. Code 672 and 673 provide authority for mobilization of 
the Ready Reserve. Specific authorities are vested in the President, 
Congress, the Secretary of Defense, the Secretary of Transportation, and 
the Secretaries of the Military Departments. Appropriate authority must 
be obtained from the President, Congress, or Secretary concerned before 
mobilization actions may be started.



Sec. 76.5  Policy.

    DoD policy directs an increasing reliance on the Ready Reserve to 
meet

[[Page 392]]

wartime requirements. In certain contingencies, plans call for the 
deployment of some Selected Reserve units and individuals before active 
units. The Selected Reserve, as a subset of the Ready Reserve, shall 
receive priority in manning, training, and equipment programs when 
Selected Reserve units and individuals deploy before active units. DoD 
policy for mobilization of the Ready Reserve is organized under the 
three major categories of manpower, training, and equipment.
    (a) Manpower. Achieving manpower goals for both active and Reserve 
Components is essential for an effective mobilization process. Personnel 
shortages and military skill imbalances affect wartime capabilities of 
the total force, not just the DoD Component possessing such 
deficiencies. DoD manpower policy is as follows:
    (1) Achieve and maintain a pretrained manpower pool adequate to 
staff all shortfalls in active and Reserve Component units to wartime 
levels of programmed manning within the time specified in mobilization 
and deployment plans.
    (2) Have members of the Individual Ready Reserve (IRR) affiliated or 
preassigned with units of the active or reserve forces, when 
practicable, insofar as it would enhance refresher training, rapid 
deployment, and effective utilization in a war or national emergency.
    (3) Achieve an annual aggregate operating strength population in the 
Reserve Components that possesses skill, grade, and experience 
qualifications represented in the programmed manning requirements.
    (4) Program resources for maximizing the effectiveness and for 
improving the management of the pretrained manpower pool, including the 
IRR and the Inactive National Guard (ING).
    (b) Training. Effective utilization of the total force requires the 
rapid assimilation of Reserve Component units and individuals into 
active service in a mobilization. This may be accomplished only if 
requisite training has occurred before the event. DoD policy is as 
follows:
    (1) Ensure that early deploying Reserve Component units are trained 
fully in their wartime taskings and are capable of attaining requisite 
readiness status before the deployment time specified by contingency 
plans.
    (2) Ensure that Reserve Component individuals and units are trained 
appropriately for augmenting active forces on mobilization.
    (3) Determine IRR skill proficiency degradation and conduct skill 
refresher training.
    (4) Ensure that Ready Reserve training and evaluating procedures are 
consistent with standards established for the active force.
    (5) Ensure that training cadres are equipped and prepared for 
mobilization training base programs supporting the total force after M-
Day.
    (c) Equipment. Equipment compatibility among total force components 
is a battlefield imperative. Active and Reserve Component units 
deploying at the same time shall have equal claim on equipment 
inventories; i.e., the first units scheduled to become operational in 
theater shall be equipped first regardless whether active or Reserve 
Component. Equipment policy applies equally to tools, technical 
documentation, spares and repair parts, and all items of supply that are 
prescribed for unit issue. DoD policy is to ensure the following:
    (1) Procuring and distributing new and/or combat serviceable 
equipment is consistent with DoD policy guidance in DoD Directive 
1225.6.\1\
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    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, Attn: Code 301, 5801 Tabor Avenue, 
Philadelphia, PA 19120.
---------------------------------------------------------------------------

    (2) Equipment interoperability among reserve and active units 
serving together on the battlefield when interoperability of the 
respective equipment is essential for effective military operations.
    (3) Equipment on hand is adequate for enabling reserve units to 
conduct effective training before mobilization.
    (4) Plans are developed to redistribute those assets left in the 
Continental United States (CONUS) by units deploying to prepositioned 
stocks on mobilization, to procure and distribute sufficient assets for 
not-fully-equipped units before the deployment time specified in 
contingency plans.

[[Page 393]]



Sec. 76.6  Mobilization procedures.

    (a) Planning. Use of the Ready Reserve must consider the entire 
crisis spectrum. Plans for mobilizing the Ready Reserve must be 
flexible, consistent, responsive, and sufficiently comprehensive for 
meeting all contingencies and employment options. Mobilization plans and 
procedures must:
    (1) Provide for fully developed plans of Ready Reserve mobilization 
including each reserve category in the Ready Reserve; i.e., Selected 
Reserve, IRR, and ING.
    (2) Enhance the readiness of Ready Reserve units and individuals so 
they may respond rapidly and effectively.
    (3) Encompass all actions necessary for warning, alerting, and 
mobilizing Ready Reserve units and individuals and for bringing them 
rapidly to full combat capability.
    (4) Specify authorizations, responsibilities, and coordination of 
decisions required for alerting, mobilizing, deploying, and employing 
Ready Reserve units and individuals.
    (5) Provide sufficient flexibility in the mobilization decision and 
execution process for accommodating rapid changes.
    (6) Include appropriate provisions for using National Guard and 
Ready Reserve members on a voluntary basis during the early stages of 
increasing tensions.
    (7) Include appropriate provisions to facilitate employing mobilized 
National Guard and other Reserve Component force in support of civil 
protection where authorized by Federal Statute and directed by the 
National Command Authority.
    (b) Screening. 32 CFR part 44 provides guidance on screening members 
of the Ready Reserve. The screening system is a continuous peacetime 
process and the primary means for ensuring that reserve members receive 
fair treatment and are evaluated on their mobilization responsibilities. 
The screening process shall be used to identify members not meeting 
mobilization requirements and to eliminate them from the Ready Reserve 
before mobilization. On mobilization, all members remaining in the Ready 
Reserve shall be considered immediately available for active duty 
service.
    (c) Alert notification. An official action informing commands, 
staffs, members of Selected Reserve units, and individual reservists 
that mobilization is imminent or seems imminent. Each Military Service 
shall publish procedures for alerting any or all of its Ready Reserve 
and for systematically executing the mobilization order. Based on a 
decision by the President and/or the Congress, the Secretary of Defense 
shall direct the Military Departments to mobilize all or any specified 
number of reservists (F-Hour) and shall determine the day that 
mobilization is to begin (M-Day). The Secretary of Transportation shall 
perform this function for the Coast Guard when the Coast Guard is not 
operating as a Service in the Navy.
    (d) Ordering. An official notification directing members of a 
Reserve Component to report for active duty is a legal order whether 
written or oral. Each Military Service shall establish procedures for 
notifying Ready Reserve members by the simplest and fastest means 
consistent with military and security requirements. When ordered, a 
member shall report for active duty at the location and time specified 
in the notification order. Under title 10, U.S. Code, section 892, 
persons lawfully notified of the requirement to report for active duty 
are subject to military jurisdiction from the date and time they are 
required to report.
    (e) Reporting. When mobilization is ordered, all members of the 
Ready Reserve shall report to their respective units or initial 
reporting assignment unless it is physically impossible. Members shall 
be available to report for active duty in the times specified below, 
unless a different reporting time is specified by the Military Service 
concerned. Military Services shall develop policy and procedures to deal 
with members who fail to report or fail to contact their units within 
specified reporting times.
    (1) Selected Reserve. Report within 24 hours of notification.
    (2) Individual Ready Reserve/Inactive National Guard. Report within 
5 to 15 days of notification as determined by the different Military 
Service procedures.

[[Page 394]]

    (f) Execution of Orders. All Ready Reserve members shall be prepared 
to execute mobilization orders when ordered to active duty. To ensure 
reporting times are met, members shall arrange in advance the handling 
of family, personal, business and other responsibilities. While 
circumstances may hinder an individual from reporting as directed, no 
member of the Ready Reserve shall be exempt from mobilization. Military 
Services shall develop specific procedures to deal with members having 
difficulty in mobilizing. Those persons having difficulty in executing 
mobilization orders due to unusual circumstances shall be guided by the 
following:
    (1) Deferments. Members physically unable to report for active duty 
or who cannot qualify for active duty service because of temporary 
health disorders may be granted a deferment. This category includes 
Ready Reserve members who are hospitalized, unqualified temporarily for 
active duty for medical reasons, or incarcerated temporarily. When a 
deferment is granted, it shall contain written authorization and shall 
specify a reporting date. Members authorized a deferment shall remain 
obligated to enter active duty while the mobilization order remains in 
effect. Deferments shall not be authorized for civilian employment, 
civilian occupation, or for exempting members from active duty. No 
categories or groups shall be granted an automatic deferment except non-
prior Service members with a reporting date for initial active duty.
    (2) Emergency leave. Members with temporary personal emergencies 
such as death of a family member may be granted a short period of 
emergency leave, but only after physically reporting for active duty and 
receiving proper authorization.
    (3) Separation. Continuous screening in peacetime ensures the 
transfer or discharge of Ready Reserve members who may not mobilize. On 
mobilization all members shall report for active duty as ordered. Once 
on active duty, a member with an unexpected hardship may request 
release, separation, or discharge. Services shall evaluate each request 
utilizing the policies established for evaluating active duty members.
    (g) Integrity of units. Title 10, U.S. Code, section 672(c) provides 
that,``so far as practicable, during any expansion of the active Armed 
Forces that requires that units and members of the Reserve Components be 
ordered to active duty (other than for training), members of units 
organized and trained to serve as units, who are ordered to that duty 
without their consent, shall be so ordered with their units.'' Members 
of those units may be reassigned after being ordered to active duty 
(other than for training) to meet requirements of the Military Service 
concerned.
    (h) Extension of service. (1) Title 10 U.S. Code sections 511(a) and 
511(c) provide for extending the terms of reserve enlistments or the 
terms of service in Reserve Components in time of war or national 
emergency declared by Congress for a maximum of 6 months after the end 
of the war or emergency unless terminated sooner by the Secretary 
concerned.
    (2) Section 671a of title 10 U.S. Code provides that the period of 
active service of a Service member is extended for the duration of any 
war in which the United States is engaged and for 6 months thereafter.
    (3) Section 671b of title 10 U.S. Code allows the President to 
authorize the Secretary of Defense to extend maximally for 6 months the 
enlistments, appointments, and periods of active duty, periods of active 
duty for training, periods of obligated service or other Military 
Service when Congress is not is session, with a provision for 
Congressional review when reconvening.
    (4) Section 673c of title 10 U.S. Code empowers the President to 
suspend any law on promoting, retiring, or separating any member of the 
Armed Force, whom the President finds to be essential to U.S. security.



Sec. 76.7  Responsibilities.

    (a) The Under Secretary of Defense (Policy) (USD(P)) shall provide 
overall mobilization policy and planning guidance for DoD programs with 
other DoD Directives.
    (b) The Assistant Secretary of Defense (Reserve Affairs) (ASD(RA)) 
shall provide policy, programs, and guidance for the management and 
mobilization of

[[Page 395]]

the Ready Reserve, in accordance with 32 CFR part 379.
    (c) The Assistant Secretary of Defense (Force Management and 
Personnel (ASD(FM&P)) shall provide policy and planning guidance for 
military and civilian defense manpower, in accordance with the DoD 
Master Mobilization Plan.
    (d) The Assistant Secretary of Defense (Health Affairs) (ASD(HA)) 
shall provide policy, programs, and guidance for the management and 
mobilization of reserve health personnel and medical assets, in 
coordination with ASD(RA).
    (e) The Assistant Secretary of Defense (Acquisition and Logistics) 
(ASD(A&L)) shall provide policy, programs, and guidance for the 
management of Reserve Component logistical resources, installations, and 
associated functions, in accordance with DoD Directive 5128.1.\1\
---------------------------------------------------------------------------

    \1\ See 376.5(c)(1).
---------------------------------------------------------------------------

    (f) The Assistant Secretary of Defense (Public Affairs) (ASD(PA)) 
shall ensure a free flow of news and information to the media, other 
appropriate forums, and the American people, limited only by U.S. 
security constraints and statutory mandates.
    (g) The Assistant Secretary of Defense (Legislative Affairs) 
(ASD(LA)) shall provide specific information on mobilization activities 
to the jurisdictional Congressional Committee members and staff.
    (h) The Joint Chiefs of Staff shall:
    (1) Ensure that the Joint Deployment Agency (JDA), Military 
Transportation Management Command, and other Agencies responsible for 
ensuring that logistics, transportation, and other requirements for 
Ready Reserve mobilization may be met promptly.
    (2) Ensure that JCS-sponsored mobilization exercises include 
realistic scenarios that facilitate Military Service testing and 
assessing of management and mobilization of the Ready Reserve.
    (i) The Secretaries of Military Departments shall:
    (1) Prepare mobilization plans in accordance with this part and with 
supplementary guidance issued by OJCS.
    (2) Ensure that mobilization plans and procedures provide for all 
exigencies so that Ready Reserve units and members execute their 
responsibilities effectively and the active DoD Components support and 
effectively assimilate mobilized reserve units and individuals.
    (3) Conduct comprehensive assessments for ensuring that a balanced 
capability exists to mobilize reserve forces. The following areas should 
be in this assessment:
    (i) Intra-CONUS transportation requirements.
    (ii) Training base equipment, manpower, and facilities requirements.
    (iii) Units training, equipping, and manning requirements.
    (iv) Deficiencies in any of these areas should be identified and 
both short term and long term solutions developed.
    (4) Conduct periodic mobilization and readiness tests of Selected 
Reserve units.
    (5) Order IRR members to active duty at least 1 day each year for 
annual screening.
    (6) Order IRR members to active duty, as necessary, for refresher 
skill proficiency training.
    (j) The Commandant of the Coast Guard, with respect to the Coast 
Guard when it is not operating as a Service in the Navy, shall fulfill 
the same responsibilities with which the Secretaries of the Military 
Departments are charged in this part, but within the policy and fiscal 
parameters also established by the Secretary of Transportation.



PART 77--PROGRAM TO ENCOURAGE PUBLIC AND COMMUNITY SERVICE--Table of Contents




Sec.
77.1  Purpose.
77.2  Applicability and scope.
77.3  Definitions.
77.4  Policy.
77.5  Responsibilities.
77.6  Procedures.

Appendix A to Part 77--DD Form 2580, Operation Transition Department of 
          Defense Outplacement and Referral System/Public and Community 
          Service Individual Application
Appendix B to Part 77--DD Form 2581, Operation Transition Employer 
          Registration
Appendix C to Part 77--DD Form 2581-1, Public and Community Service 
          Organization Validation


[[Page 396]]


    Authority: 10 U.S.C. 1143 (c).

    Source: 59 FR 40809, Aug. 10, 1994, unless otherwise noted.



Sec. 77.1  Purpose.

    This part implements Pub. L. 102-484, Section 4462 and Pub. L. 103-
160, Section 561 by establishing policy, assigning responsibilities, and 
prescribing procedures to:
    (a) Encourage and assist separating Service members, Service members 
retiring with 20 or more years of service, DoD civilian personnel 
leaving the Government, and spouses to enter public and community 
service employment.
    (b) Encourage and assist Service members requesting retirement with 
fewer than 20 years of service to register for public and community 
service employment.



Sec. 77.2  Applicability and scope.

    This part applies to:
    (a) The Office of the Secretary of Defense, the Military 
Departments, the Chairman of the Joint Chiefs of Staff, the Unified 
Combatant Commands, and the Defense Agencies (hereafter referred to 
collectively as ``the DoD Components''). The term ``Military Services,'' 
as used herein, refers to the Army, the Navy, the Air Force, and the 
Marine Corps.
    (b) All active duty Service members and former members under Pub. L. 
102-484, Section 4462 and Pub. L. 103-160, Section 561, and DoD civilian 
personnel leaving the Government, and their spouses.



Sec. 77.3  Definitions.

    (a) Community service employment. Work in nonprofit organizations 
that provide or coordinate services listed in paragraphs (d) (1) through 
(12) of this section. ``Nonprofit'' is defined as having been recognized 
by the Internal Revenue Service as having a tax-exempt status under 26 
U.S.C. 501 (c)(3) or (c)(4). These organizations shall not be 
administered by businesses organized for profit, labor unions, partisan 
political organizations, or organizations engaged in religious 
activities, unless such activities are unrelated to religious 
instructions, worship services, or any form of proselytization.
    (b) Creditable early retirement public or community service 
employment for service members. Employment in a DoD-registered public 
and community service organization that provides the services listed in 
paragraphs (d) (1) through (12) of this section, or that coordinates the 
provision of the services listed in paragraphs (d) (1) through (12) of 
this section. Federal employment shall count toward recomputed military 
retirement pay and Survivor Benefit Plan base amount for early retirees: 
however, working in a DoD-registered Federal public service organization 
may trigger the dual-compensation restrictions of 5 U.S.C. 5532. 
Employment must have occurred between that date of early retirement and 
the date in which the Service member would have attained 20 years of 
credible service for computing retired pay, or he or she must have 
retired on or after October 23, 1992 and before October 1, 1999.
    (c) Early retirement. Retirement from active duty with at least 15 
but fewer than 20 years of service, as provided by Pub. L. 102-484, 
Section 4403.
    (d) Public and community service organization. Government or private 
organizations that provide or coordinate the provision of the following 
services.
    (1) Elementary, secondary, or post secondary school teaching or 
administration.
    (2) Support of teachers or school administrators.
    (3) Law enforcement.
    (4) Public health care.
    (5) Social services.
    (6) Public safety.
    (7) Emergency relief.
    (8) Public housing.
    (9) Conservation.
    (10) Environment.
    (11) Job training.
    (12) Other public and community service not listed previously, but 
consistent with or related to services described in paragraphs(d)(1) 
through (11) of this section.
    (e) Public service employment. Work in a Federal, state or local 
government organization which provides or coordinates services listed in 
paragraphs (d)(1) through (12) of this section.
    (f) Separation. Normal separation from activity duty or civil 
service, military retirement with 20 or more

[[Page 397]]

year's service, release from active military service, and reduction in 
force.
    (g) Transition assistance program counselor. A person charged with 
the responsibility of conducting transition programs. Examples include 
personnel assigned to family centers, military or civilian personnel 
offices, unit transition counselors, and as command career counselors.



Sec. 77.4  Policy.

    It is DoD policy that:
    (a) All separating Service members and former members shall be 
encouraged to enter public or community service employment.
    (b) Service members determined to be eligible by the Secretary of 
their Military Department for, and who do request retirement with fewer 
than 20 years of service, are required by Pub. L. 102-484, Section 4403 
to register for public and community service employment.
    (1) This registration normally shall take place not earlier than 90 
days before retirement or terminal/transition leave.
    (2) In order to have their military retired pay and Survivor Benefit 
Plan base amount (if applicable) recomputed in accordance with DoD 
Instruction 1340.19\1\ early retirees must be employed with a DoD-
registered public or community service organization that provides the 
services listed in sections 77.3(d)(1) through (d)(12), or that 
coordinates the provision of services listed in section 77.3(d)(1) 
through (d)(12).
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    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    (c) DoD civilian personnel leaving the Government, their spouses, 
and spouses of Service members who are seeking employment shall be 
encouraged to register for public and community service employment.



Sec. 77.5  Responsibilities.

    (a) The Under Secretary of Defense for Personnel and Readiness 
shall:
    (1) Monitor compliance with this rule.
    (2) Establish policy and provide guidance related to public and 
community service employment.
    (3) Provide program information to the public on the Department of 
Defense's public and community service employment program.
    (4) Ensure that the Director, Defense Manpower Data Center (DMDC):
    (i) Maintains the Public and Community Service Organizational 
Registry.
    (ii) Maintains the Public and Community Service Personnel Registry.
    (5) Decide the status of requests for reconsideration from employers 
resubmitting their request to be included on the Public and Community 
Service Organizational Registry, but whose first request was 
disapproved.
    (b) The Secretaries of the Military Departments shall:
    (1) Ensure compliance with this rule.
    (2) Encourage public and community service employment for separating 
Service members, their spouses, DoD civilian personnel leaving the 
Government, and their spouses.
    (3) Coordinate with the Under Secretary of Defense for Personnel and 
Readiness before promulgating public and community service employment 
policies and regulations.



Sec. 77.6  Procedures.

    (a) Military personnel offices shall advise Service members desiring 
to apply for early retirement that they shall register, normally, within 
90 days of their retirement date, for public and community service 
(PACS) employment, and refer them to a Transition Assistance Program 
Counselor for registration.
    (b) Personnel offices shall advise separating Service members, DoD 
civilian personnel leaving the Government, and their spouses to contact 
a Transition Assistance Program Counselor about PACS employment and 
registration.
    (c) Transition Assistance Program Counselors shall counsel 
separating Service members (during preseparation counseling established 
by DoD Instruction 1332.36 \2\), DoD civilian personnel leaving the 
Government, and their spouses on PACS employment. Counselors shall 
update into the Defense Outplacement Referral System (DORS) database 
Service members requesting

[[Page 398]]

early retirement and other DoD personnel or spouses who request 
registration. Transition Assistance Program Counselors shall use DD Form 
2580 (Appendix A to this part) to register personnel for PACS 
employment. In addition, Counselors shall ensure that Service members 
who are requesting early retirement are advised that:
---------------------------------------------------------------------------

    \2\ See footnote 1 to section 77.4(b)(2).
---------------------------------------------------------------------------

    (1) Registering for PACS employment is a requirement for 
consummation of their early retirement under Pub. L. 102-484, Section 
4403 or Pub. L. 103-160, Section 561.
    (2) Early retirees must provide a copy of their confirmation DORS 
mini-resume to their servicing military personnel office for filing in 
their Service record before their final retirement processing.
    (3) Subsequent PACS employment is encouraged but not required.
    (4) Working in a DoD-approved Federal public service organization 
may subject him or her to dual compensation restrictions of 5 U.S.C. 
5532.
    (5) DoD-approved PACS employment qualifies the Service member who is 
retired under Pub. L. 102-484, Section 4403 or Pub. L. 103-160, Section 
561 for increased retired pay effective on the first day of the first 
month beginning after the date on which the member or former member 
attains 62 years of age. The former Service member must have worked in 
DoD-approved PACS employment between the date of early retirement and 
the date in which he or she would have attained 20 years of creditable 
service for computing retired pay, and have retired on or after October 
23, 1992 and before October 1, 1999.
    (6) It is the early retiree's responsibility to ensure that the DMDC 
is advised when the early retiree's PACS employment starts, and of any 
subsequent changes.
    (d) Military personnel offices shall ensure a copy of the 
confirmation DORS mini-resume is filed in the permanent document section 
of the Service record of Service members who retire early.
    (e) DMDC shall maintain the PACS Personnel Registry, which includes 
information on the particular job skills, qualifications, and experience 
of registered personnel.
    (f) DMDC shall maintain the PACS Organizational Registry, which 
includes information regarding each organization, including its 
location, size, types of public or community service positions in the 
organization, points of contact, procedures for applying for such 
positions, and a description of each position that is likely to be 
available.
    (g) PACS Organizations shall use DD Form 2581 (Appendix B to this 
part) and DD Form 2581-1 (Appendix C to this part) to request 
registration on the PACS Organizational Registry. Instructions on how to 
complete the forms and where to send them are on the forms.
    (h) DMDC shall register those organizations meeting the definition 
of a PACS organization and include them on the PACS Organizational 
Registry. For organizations that do not appear to meet the criteria, 
DMDC shall refer the request to the Transition Support and Services 
Directorate, Office of the Assistant Secretary of Defense for Personnel 
and Readiness. The Transition Support and Services Directorate may 
consult individually on an ad hoc basis with appropriate agencies to 
determine whether or not the organization meets the validation criteria. 
For organizations which are denied approval as a creditable early 
retirement organization and which request reconsideration, the 
Transition Support and Services Directorate will forward that request to 
the next higher level for a final determination. DMDC shall advise 
organizations of their status.

[[Page 399]]

 Appendix A to Part 77-DD Form 2580, Operation Transition Department of 
                                 Defense

Outplacement and Referral System/Public and Community Service Individual 
                               Application
[GRAPHIC] [TIFF OMITTED] TR10AU94.039


[[Page 400]]


[GRAPHIC] [TIFF OMITTED] TR10AU94.040


[[Page 401]]


[GRAPHIC] [TIFF OMITTED] TR10AU94.041

                             Pt. 77, App. A

[[Page 402]]

   Appendix B to Part 77-DD Form 2581, Operation Transition Employer 
                              Registration
[GRAPHIC] [TIFF OMITTED] TR10AU94.042


[[Page 403]]


[GRAPHIC] [TIFF OMITTED] TR10AU94.043


[[Page 404]]

   Appendix C to Part 77-DD Form 2581-1, Public and Community Service 
                         Organization Validation
[GRAPHIC] [TIFF OMITTED] TR10AU94.044


[[Page 405]]


[GRAPHIC] [TIFF OMITTED] TR10AU94.045


[[Page 406]]




        PART 78--VOLUNTARY STATE TAX WITHHOLDING FROM RETIRED PAY

Sec.
78.1  Purpose...........................................................
78.2  Applicability and scope...........................................
78.3  Definitions.......................................................
78.4  Policy............................................................
78.5  Procedures........................................................
78.6  Responsibilities..................................................
78.7  Standard agreement................................................

    Authority: 10 U.S.C. 1045.

    Source: 50 FR 47220, Nov. 15, 1985, unless otherwise noted.


Sec. 78.1    Purpose.

    Under 10 U.S.C. 1045, this part provides implementing guidance for 
voluntary State tax withholding from the retired pay of uniformed 
Service members.


Sec. 78.2    Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense, the 
Military Departments, the Coast Guard (under agreement with the 
Department of Transportation), the Public Health Service (PHS) (under 
agreement with the Department of Health and Human Services and the 
National Oceanic and Atmospheric Administration (NOAA) (under agreement 
with the Department of Commerce). The term ``Uniformed Services,'' as 
used herein, refers to the Army, Navy, Air Force, Marine Corps, Coast 
Guard, commissioned corps of the PHS, and the Commissioned corps of the 
NOAA.
    (b) It covers members retired from the regular and reserve 
components of the Uniformed Services who are receiving retired pay.


Sec. 78.3    Definitions.

    (a) Income tax. Any form of tax under a State statute where the 
collection of that tax either imposes on employers generally the duty of 
withholding sums from the compensation of employees and making returns 
of such sums to the State, or grants employers generally the authority 
to withhold sums from the compensation of employees if any employee 
voluntarily elects to have such sum withheld. And, the duty to withhold 
generally is imposed, or the authority to withhold generally is granted, 
with respect to the compensation of employees who are residents of such 
State.
    (b) Member. A person originally appointed or enlisted in, or 
conscripted into, a Uniformed Service who has retired from the regular 
or reserve component of the Uniformed Service concerned.
    (c) Retired pay. Pay and benefits received by a member based on 
conditions of the retirement law, pay grade, years of service, date of 
retirement, transfer to the Fleet Reserve or Fleet Marine Corps Reserve, 
or disability. It also is known as retainer pay.
    (d) State. Any State, the District of Columbia, the Commonwealth of 
Puerto Rico, and any territory or possession of the United States.


Sec. 78.4    Policy.

    (a) It is the policy of the Uniformed Services to accept written 
requests from members for voluntary income tax withholding from retired 
pay when the Department of Defense has an agreement for such withholding 
with the State named in the request.
    (b) The Department of Defense shall enter into an agreement for the 
voluntary withholding of State income taxes from retired pay with any 
State within 120 days of a request for agreement from the proper State 
official. The agreement shall provide that the Uniformed Services shall 
withhold State income tax from the monthly retired pay of any member who 
voluntarily requests such withholding in writing.


Sec. 78.5    Procedures.

    (a) The amounts withheld during any calendar quarter shall be 
retained by the Uniformed Service and disbursed to the States during the 
month following that calendar quarter. Payment procedures shall conform, 
to the extent practicable, to the usual fiscal practices of the 
Uniformed Services.
    (b) A member may request that the State designated for withholding 
be changed and that the subsequent withholdings be remitted as amended. 
A member may revoke his or her request for withholding at any time. Any 
request for a change in the State designated or any revocation is 
effective on the first day of the month after the

[[Page 407]]

month in which the request or revocation is processed by the Uniformed 
Service concerned, but in no event later than on the first day of the 
second month beginning after the day on which the request or revocation 
is received by the Uniformed Service concerned.
    (c) A member may have in effect at any time only one request for 
withholding under this part. A member may not have more than two such 
requests in effect during any one calendar year.
    (d) The agreements with States may not impose more burdensome 
requirements on the United States than on employers generally or subject 
the United States, or any member, to a penalty or liability because of 
such agreements.
    (e) The Uniformed Services shall perform the services under this 
part without accepting payment from States for such services.
    (f) The Uniformed Services may honor a retiree's request for refund 
until a payment has been made to the State. After that, the retiree may 
seek a refund of any State tax overpayment by filing the appropriate 
State tax form with the State that received the voluntary withholding 
payments. The Uniformed Services may honor a retiree's request for 
refund until a payment has been made to the State. State refunds will be 
in accordance with State income tax policy and procedures.
    (g) A member may request voluntary tax withholding by writing the 
retired pay office of his or her Uniformed Service. The request shall 
include: The member's full name, social security number, the fixed 
amount to be withheld monthly from retired pay, the State designated to 
receive the withholding, and the member's current residence address. The 
request shall be signed by the member, or in the case of incompetence, 
his or her guardian or trustee. The amount of the request for State tax 
withholding must be an even dollar amount, not less than $10 or less 
than the State's minimum withholding amount, if higher. The Uniformed 
Services' retired pay office addresses are given as follows:

    (1) Army--Commanding Officer, Army Finance and Accounting Center 
(Dept. 90), Indianapolis, IN 46249, (800) 428-2290.
    (2) Navy--Commanding Officer, Navy Finance Center (Code 301), 
Anthony J. Celebrezze Federal Building, Cleveland, OH 44199, (800) 321-
1080.
    (3) Air Force--Commander, Air Force Accounting and Finance Center, 
Attn: RP, Denver, CO 80279, (800) 525-0104.
    (4) Marine Corps--Commanding Officer (CPR), Marine Corps Finance 
Center, Kansas City, MO 64197, (816) 926-7130.
    (5) Coast Guard--Commanding Officer (Retired), U.S. Coast Guard Pay 
and Personnel Center, 444 S.E. Quincy Street, Topeka, KS 66683, (913) 
295-2657.
    (6) PHS--U.S. Public Health Service, Compensation Branch, 5600 
Fisher Lane, Room 4-50, Rockville, MD 20857, (800) 638-8744 (except AK & 
MD), (301) 443-6132 (AK & MD).
    (7) NOAA--Commanding Officer, Navy Finance Center (Code 301), 
Anthony J. Celebrezze Federal Building, Cleveland, OH 44199, (800) 321-
1080.

    (h) If a member's retired pay is not sufficient to satisfy a 
member's request for a voluntary State tax, then the withholding will 
cease. A member may initiate a new request when such member's retired 
pay is restored in an amount sufficient to satisfy the withholding 
request.
    (i) A State requesting an agreement for the voluntary withholding of 
State tax from the retired pay of members of the Uniformed Services 
shall indicate, in writing, its agreement to be bound by the provisions 
of this part. If the State proposes an agreement that varies from the 
Standard Agreement, the State shall indicate which provisions of the 
Standard Agreement are not acceptable and propose substitute provisions. 
The letter shall be addressed to the Assistant Secretary of Defense 
(Comptroller), the Pentagon, Washington, DC 20301. To be effective, the 
letter must be signed by a State official authorized to bind the State 
under an agreement for tax withholding. Copies of applicable State laws 
that authorize employers to withhold State income tax and authorize the 
official to bind the State under an agreement for tax withholding shall 
be enclosed with the letter. The letter also shall indicate the title 
and address of the official whom the Uniformed Services may contact to 
obtain information necessary for implementing withholding.

[[Page 408]]

    (j) Within 120 days of the receipt of a letter from a State, the 
Assistant Secretary of Defense (Comptroller), or designee, will notify 
the State, in writing, that DoD has either entered into the Standard 
Agreement or that an agreement cannot be entered into with the State and 
the reasons for that determination.
[50 FR 47220, Nov. 15, 1985, as amended at 50 FR 49930, Dec. 6, 1985]


Sec. 78.6    Responsibilities.

    (a) The Assistant Secretary of Defense (Comptroller) shall provide 
guidance, monitor compliance with this part, and have the authority to 
change or modify the procedures set forth.
    (b) The Secretaries of the Military Departments and Heads of the 
other Uniformed Services shall comply with this part.


Sec. 78.7    Standard agreement.

    Standard Agreement For Voluntary State Tax Withholding From The 
Retired Pay Of Uniformed Service Members

Article I--Purpose

    This agreement, hereafter referred to as the ``Standard Agreement,'' 
establishes administrative procedures and assigns responsibilities for 
voluntary State tax withholding from the retired pay of Uniformed 
Service members consistent with section 654 of the Department of Defense 
Authorization Act for Fiscal Year 1985 (Pub. L. 98-525), codified as 10 
U.S.C. 1045.

Article II--Parties

    The parties to this agreement are the Department of Defense on 
behalf of the Uniformed Services and the State that has entered into 
this agreement pursuant to 10 U.S.C. 1045.

Article III--Procedures

    The parties to the Standard Agreement are bound by the provisions in 
title 32, Code of Federal Regulations, part 78. The Secretary of Defense 
may amend, modify, supplement, or change the procedures for voluntary 
State tax withholding from retired pay of Uniformed Service members 
after giving notice in the Federal Register. In the event of any such 
changes, the State will be given 45 days to terminate this agreement.

Article IV--Reporting

    Copies of Internal Revenue Service Form W-2P, ``Statement for 
Recipients of Annuities, Pensions, Retired Pay or IRA Payments,'' may be 
used for reporting withheld taxes to the State. The media for reporting 
(paper copy, magnetic tape, etc.) will comply with State reporting 
standards that apply to employers in general.

Article V--Other Provisions

    A. This agreement shall be subject to any amendment of 10 U.S.C. 
1045 and any regulations issued pursuant to such statutory change.
    B. In addition to the provisions of Article III, the agreement may 
be terminated by a party to the Standard Agreement by providing the 
other party with written notice to that effect at least 90 days before 
the proposed termination.
    C. Nothing in this agreement shall be deemed to:
    1. Require the collection of delinquent tax liabilities of retired 
members of the Uniformed Services;
    2. Consent to the application of any provision of State law that has 
the effect of imposing more burdensome requirements upon the United 
States than the State imposes on other employers, or subjecting the 
United States or any member to any penalty or liability;
    3. Consent to procedures for withholding, filing of returns, and 
payment of the withheld taxes to States that do not conform to the usual 
fiscal practices of the Uniformed Services;
    4. Allow the Uniformed Services to accept payment from a State for 
any services performed with regard to State income tax withholding from 
the retired pay of Uniformed Service members.



PART 79--CONTRIBUTIONS TO STATE RETIREMENT PROGRAMS FOR NATIONAL GUARD TECHNICIANS--Table of Contents




Sec.
79.1  Reissuance and purpose.
79.2  Applicability and scope.
79.3  Definitions.
79.4  Policy.
79.5  Procedures.
79.6  Responsibilities.
79.7  Standards for contribution agreements with State retirement 
          programs for National Guard technicians.

    Authority: E.O. 10996, 5 U.S.C. 5518, 8331-8348, and 32 U.S.C. 709.

    Source: 47 FR 34982, Aug. 12, 1982, unless otherwise noted.



Sec. 79.1  Reissuance and purpose.

    This part is reissued to update the policies that implement title 5 
U.S.C.

[[Page 409]]

sections 5518 and 8331--8348, E.O. 10996, and title 32 U.S.C. 709 for 
employer and employee contributions to State-sponsored retirement 
programs for National Guard technicians who have elected participation.



Sec. 79.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense and 
the Departments of the Army and the Air Force.
    (b) Its provisions establish terms and conditions governing Federal 
and employee contributions for National Guard technicians who have 
elected participation in a State-sponsored employee retirement program 
not later than January 1, 1969. An eligible State employee retirement 
program may extend to disability and survivor benefits.



Sec. 79.3  Definitions.

    (a) National Guard. The Army and Air National Guard of a State.
    (b) State. A State or territory of the United States, including the 
Commonwealth of Puerto Rico.
    (c) Technician. A Federal employee of the National Guard, consistent 
with title 26, U.S.C. section 3111, exclusive of National Guard Bureau 
employees.



Sec. 79.4  Policy.

    It is the policy of the Department of Defense to: (a) Negotiate 
agreements with States for Federal employees' contributions to a State 
or State-sponsored contributory retirement program; and (b) cooperate 
and process agreements with each State requesting a withholding 
agreement covering technicians of the National Guard for a State-
sponsored retirement program.



Sec. 79.5  Procedures.

    (a) Section 6(a) of Public Law 90-486 requires technicians who 
elected to continue coverage under a State retirement plan to make such 
an election by January 1, 1969. If a technician filed a valid election 
to remain covered by an employee retirement system sponsored by a State, 
the U.S. Government may pay the amount of the employer's contribution 
and withhold the employee's designated share for deposit to the State 
program that becomes due for the period beginning on or after January 1, 
1969.
    (b) The Federal share of payments, including employer's taxes 
imposed by 26 U.S.C. 3111, may not exceed the amount that the employing 
agency otherwise would contribute on behalf of the technician to the 
Civil Service Retirement and Disability Fund under 5 U.S.C. 8334.
    (c) A person covered under a State-sponsored program shall not 
concurrently earn credits toward retirement or receive an annuity under 
5 U.S.C. 8334.
    (d) A person who retires under a State retirement program shall not 
be eligible for any rights, benefits, or privileges to which retired 
civilian employees of the United States may be entitled.
    (e) Agreements with States shall comply with the standards contained 
in Sec. 79.7.



Sec. 79.6  Responsibilities.

    (a) The Assistant Secretary of Defense (Comptroller) shall establish 
policy and procedures regarding State retirement programs for National 
Guard technicians and shall update agreements with authorized State 
officials for the Secretary of Defense.
    (b) The Secretary of the Army shall (1) implement the provisions of 
this Directive; (2) coordinate actions with the Secretary of the Air 
Force; and (3) designate the National Guard Bureau as the responsible 
agent for maintaining existing agreements with States and for 
coordinating administrative actions, to include preparing updated 
agreements.



Sec. 79.7  Standards for contribution agreements with State retirement programs for National Guard technicians.

    Each agreement between the Secretary of Defense and the Governor, or 
other authorized State official, for employer and employee contributions 
to a State retirement program for National Guard technicians shall be 
completed within 120 days of receipt of a State request, Provided, 
that--
    (a) State law provides for payment of employee contributions to a 
State-sponsored employee retirement system

[[Page 410]]

by withholding sums from the employee's compensation and making payment 
to the official designated to receive sums withheld.
    (b) The program is limited to technicians of the National Guard.
    (c) Each agreement is consistent with this Directive and contains a 
clause that subjects the agreement to any statutory amendments occurring 
after the effective date of the agreement.
    (d) The agreement shall comply with the requirements of State law 
that specify who is eligible for such State-sponsored retirement 
programs.
    (e) The commencement date for contributions must be specified.
    (f) Contribution procedures, filing requirements, and payment 
instructions conform, when practicable, to the usual fiscal practices of 
the Department of the Army and the Department of the Air Force.
    (g) The agreement does not impose requirements on the Department of 
Defense that are more burdensome than those requirements imposed on 
departments, agencies, or subdivisions of the State concerned.
    (h) Except to the extent that an agreement may be inconsistent with 
this Directive, it shall continue in full force and effect until 
amended, modified, or terminated by appropriate authority.



  PART 80--PROVISION OF EARLY INTERVENTION SERVICES TO ELIGIBLE INFANTS AND TODDLERS WITH DISABILITIES AND THEIR FAMILIES, AND SPECIAL EDUCATION CHILDREN WITH 

DISABILITIES WITHIN THE SECTION 6 SCHOOL ARRANGEMENTS--Table of Contents




Sec.
80.1  Purpose.
80.2  Applicability and scope.
80.3  Definitions.
80.4  Policy.
80.5  Responsibilities.
80.6  Procedures.

Appendix A to Part 80--Procedures for the Provision of Early 
          Intervention Services for Infants and Toddlers With 
          Disabilities, Ages 0-2 (Inclusive), and Their Families
Appendix B to Part 80--Procedures for Special Educational Programs 
          (Including Related Services) and for Preschool Children and 
          Children With Disabilities (3-21 Years Inclusive)
Appendix C to Part 80--Hearing Procedures

    Authority: 20 U.S.C. 1400 et seq.; 20 U.S.C. 241; 20 U.S.C. 241 
note.

    Source: 59 FR 37680, July 25, 1994, unless otherwise noted.



Sec. 80.1  Purpose.

    This part:
    (a) Establishes policies and procedures for the provision of early 
intervention services to infants and toddlers with disabilities (birth 
to age 2 inclusive) and their families, and special education and 
related services to children with disabilities (ages 3-21 inclusive) 
entitled to receive special educational instruction or early 
intervention services from the Department of Defense under Pub. L. 81-
874, sec. 6, as amended; Pub. L. 97-35, sec. 505(c); the Individuals 
with Disabilities Education Act, Pub. L. 94-142, as amended; Pub. L. 
102-119, sec. 23; and consistent with 32 CFR parts 285 and 310, and the 
Federal Rules of Civil Procedures (28 U.S.C.).
    (b) Establishes policy, assigns responsibilities, and prescribes 
procedures for:
    (1) Implementation of a comprehensive, multidisciplinary program of 
early intervention services for infants and toddlers ages birth through 
2 years (inclusive) with disabilities and their families.
    (2) Provision of a free, appropriate education including special 
education and related services for preschool children with disabilities 
and children with disabilities enrolled in the Department of Defense 
Section 6 School Arrangements.
    (c) Establishes a Domestic Advisory Panel (DAP) on Early 
Intervention and Education for Infants, Toddlers, Preschool Children and 
Children with Disabilities, and a DoD Coordinating Committee on Domestic 
Early Intervention, Special Education and Related Services.
    (d) Authorizes the publication of DoD Regulations and Manuals, 
consistent with DoD 5025.1-M,\1\ and DoD forms

[[Page 411]]

consistent with DoD 5000.12-M \2\ and DoD Directive 8910.1 \3\ to 
implement this part.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
    \2\ See footnote 1 to Sec. 80.1(c).
    \3\ See footnote 1 to Sec. 80.1(c).
---------------------------------------------------------------------------



Sec. 80.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense, the Military 
Departments, the Chairman of the Joint Chiefs of Staff and the Joint 
Staff, the Unified and Specified Commands, the Inspector General of the 
Department of Defense, the Defense Agencies, and the DoD Field Agencies 
(hereafter referred to collectively as ``the DoD Components'').
    (b) Encompasses infants, toddlers, preschool children, and children 
receiving or entitled to receive early intervention services or special 
educational instruction from the DoD on installations with Section 6 
School Arrangements, and the parents of those individuals with 
disabilities.
    (c) Applies only to schools operated by the Department of Defense 
within the Continental United States, Alaska, Hawaii, Puerto Rico, Wake 
Island, Guam, American Samoa, the Northern Mariana Islands, and the 
Virgin Islands.



Sec. 80.3  Definitions.

    (a) Assistive technology device. Any item, piece of equipment, or 
product system, whether acquired commercially or off the shelf, 
modified, or customized, that is used to increase, maintain, or improve 
functional capabilities of individuals with disabilities.
    (b) Assistive technology service. Any service that directly assists 
an individual with a disability in the selection, acquisition, or use of 
an assistive technology device. This term includes:
    (1) Evaluating the needs of an individual with a disability, 
including a functional evaluation of the individual in the individual's 
customary environment.
    (2) Purchasing, leasing, or otherwise providing for the acquisition 
of assistive technology devices by individuals with disabilities.
    (3) Selecting designing, fitting, customizing, adapting, applying, 
maintaining, repairing, or replacing of assistive technology devices.
    (4) Coordinating and using other therapies, interventions, or 
services with assistive technology devices, such as those associated 
with existing educational and rehabilitative plans and programs.
    (5) Training or technical assistance for an individual with 
disabilities, or, where appropriate, the family of an individual with 
disabilities.
    (6) Training or technical assistance for professionals (including 
individuals providing educational rehabilitative services), employers, 
or other individuals who provide services to, employ, or are otherwise 
substantially involved in the major life functions of an individual with 
a disability.
    (c) Attention deficit disorder (ADD). As used to define students, 
encompasses attention-deficit hyperactivity disorder and attention 
deficit disorder without hyperactivity. The essential features of this 
disorder are developmentally inappropriate degrees of inattention, 
impulsiveness, and hyperactivity.
    (1) A diagnosis of ADD may be made only after the child is evaluated 
by appropriate medical personnel, and evaluation procedures set forth in 
this part (appendix B to this part) are followed.
    (2) A diagnosis of ADD, in and of itself, does not mean that a child 
requires special education; it is possible that a child diagnosed with 
ADD, as the only finding, can have his or her educational needs met 
within the regular education setting.
    (3) For a child with ADD to be eligible for special education, the 
Case Study Committee, with assistance from the medical personnel 
conducting the evaluation, must then make a determination that the ADD 
is a chronic or acute health problem that results in limited alertness, 
which adversely affects educational performance. Children with ADD who 
are eligible for special education and medically related services will 
qualify for services under ``Other Health Impaired'' as described in 
Criterion A, paragraph (h)(1) of this section.
    (d) Autism. A developmental disability significantly affecting 
verbal and non-verbal communication and social

[[Page 412]]

interaction generally evident before age 3 that adversely affects 
educational performance. Characteristics of autism include 
irregularities and impairments in communication, engagement in 
repetitive activities and stereotyped movements, resistance to 
environmental change or change in daily routines, and unusual responses 
to sensory experiences. The term does not include children with 
characteristics of the disability of serious emotional disturbance.
    (e) Case Study Committee (CSC). A school-based committee that 
determines a child's eligibility for special education, develops and 
reviews a child's individualized education program (IEP), and determines 
appropriate placement in the least restrictive environment. A CSC is 
uniquely composed for each child. Participants on a CSC must include:
    (1) The designated representative of the Section 6 School 
Arrangement, who is qualified to supervise the provision of special 
education. Such representative may not be the child's special education 
teacher.
    (2) One, or more, of the child's regular education teachers, if 
appropriate.
    (3) A special education teacher.
    (4) One, or both, of the child's parents.
    (5) The child, if appropriate.
    (6) A member of the evaluation team or another person knowledgeable 
about the evaluation procedures used with the child.
    (7) Other individuals, at the discretion of the parent or the 
Section 6 School Arrangement, who may have pertinent information.
    (f) Child-find. The ongoing process used by the Military Services 
and a Section 6 School Arrangement to seek and identify children (from 
birth to 21 years of age) who show indications that they might be in 
need of early intervention services or special education and related 
services. Child-find activities include the dissemination of information 
to the public and identification, screening, and referral procedures.
    (g) Children with disabilities ages 5-21 (inclusive). Those children 
ages 5-21 years (inclusive), evaluated in accordance with this part, who 
are in need of special education as determined by a CSC and who have not 
been graduated from a high school or who have not completed the 
requirements for a General Education Diploma. The terms ``child'' and 
``student'' may also be used to refer to this population. The student 
must be determined eligible under one of the following four categories:
    (1) Criterion A. The educational performance of the student is 
adversely affected, as determined by the CSC, by a physical impairment; 
visual impairment including blindness; hearing impairment including 
deafness; orthopedic impairment; or other health impairment, including 
ADD, when the condition is a chronic or acute health problem that 
results in limited alertness; autism; and traumatic brain injury 
requiring environmental and/or academic modifications.
    (2) Criterion B. A student who manifests a psychoemotional condition 
that is the primary cause of educational difficulties; a student who 
exhibits maladaptive behavior to a marked degree and over a long period 
of time that interferes with skill attainment, classroom functioning or 
performance, social-emotional condition, and who as a result requires 
special education. The term does not usually include a student whose 
difficulties are primarily the result of:
    (i) Intellectual deficit;
    (ii) Sensory or physical impairment;
    (iii) Attention deficit hyperactivity disorder;
    (iv) Antisocial behavior;
    (v) Parent-child or family problems;
    (vi) Disruptive behavior disorders;
    (vii) Adjustment disorders;
    (viii) Interpersonal or life circumstance problems; or
    (ix) Other problems that are not the result of a severe emotional 
disorder.
    (3) Criterion C. The educational performance of the student is 
adversely affected, as determined by the CSC, by a speech and/or 
language impairment.
    (4) Criterion D. The measured academic achievement of the student in 
math, reading, or language is determined by the CSC to be adversely 
affected by underlying disabilities (including mental retardation and 
specific learning disability) including either an

[[Page 413]]

intellectual deficit or an information processing deficit.
    (5) Criterion E. A child, 0-5 inclusive, whose functioning level as 
determined by the CSC, is developmentally delayed and would qualify for 
special education and related services as determined by this regulation.
    (h) Consent. This term means that:
    (1) The parent of an infant, toddler, child, or preschool child with 
a disability has been fully informed, in his or her native language, or 
in another mode of communication, of all information relevant to the 
activity for which permission is sought.
    (2) The parent understands and agrees in writing to the 
implementation of the activity for which his or her permission is 
sought. The writing must describe that activity, list the child's 
records that will be released and to whom, and acknowledge that the 
parent understands consent is voluntary and may be prospectively revoked 
at any time.
    (3) The parent of an infant, toddler, preschool child or child must 
consent to the release of records. The request for permission must 
describe that activity, list each individual's records that will be 
released and to whom, and acknowledge that the parent understands that 
consent is voluntary and may be prospectively revoked at any time.
    (4) The written consent of a parent of an infant or toddler with a 
disability is necessary for implementation of early intervention 
services described in the individualized family service plan (IFSP). If 
such parent does not provide consent with respect to a particular early 
intervention service, then the early intervention services for which 
consent is obtained shall be provided.
    (i) Deaf. A hearing loss or deficit so severe that the child is 
impaired in processing linguistic information through hearing, with or 
without amplification, to the extent that his or her educational 
performance is adversely affected.
    (j) Deaf-blind. Concomitant hearing and visual impairments, the 
combination of which causes such severe communication and other 
developmental and educational problems that they cannot be accommodated 
in special education programs solely for children with deafness or 
children with blindness.
    (k) Developmental delay. A significant discrepancy in the actual 
functioning of an infant or toddler when compared with the functioning 
of a nondisabled infant or toddler of the same chronological age in any 
of the following areas of development: Physical development, cognitive 
development, communication development, social or emotional development, 
and adaptive development as measured using standardized evaluation 
instruments and confirmed by clinical observation and judgment. A 
significant discrepancy exists when the one area of development is 
delayed by 25 percent or 2 standard deviations or more below the mean or 
when two areas of development are each delayed by 20 percent or 1\1/2\ 
standard deviations or more below the mean. (Chronological age should be 
corrected for prematurity until 24 months of age.)
    (l) Early intervention service coordination services. Case 
management services that include integration and oversight of the 
scheduling and accomplishment of evaluation and delivery of early 
intervention services to an infant or toddler with a disability and his 
or her family.
    (m) Early intervention services. Developmental services that:
    (1) Are provided under the supervision of a military medical 
department.
    (2) Are provided using Military Health Service System and community 
resources.
    (i) Evaluation IFSP development and revision, and service 
coordination services are provided at no cost to the infant's or 
toddler's parents.
    (ii) Incidental fees (e.g., child care fees) that are normally 
charged to infants, toddlers, and children without disabilities or their 
parents may be charged.
    (3) Are designed to meet the developmental needs of an infant or 
toddler with a disability in any one or more of the following areas: 
Physical development, cognitive development, communication development, 
social or emotional development, or adaptive development.

[[Page 414]]

    (4) Meet the standards developed by the Assistant Secretary of 
Defense for Health Affairs (ASD(HA)).
    (5) Include the following services: Family training, counseling, and 
home visits; special instruction; speech pathology and audiology; 
occupational therapy; physical therapy; psychological services; early 
intervention program coordination services; medical services only for 
diagnostic or evaluation purposes; early identification, screening, and 
assessment services; vision services; and social work services. Also 
included are assistive technology devices and assistive technology 
services; health services necessary to enable the infant or toddler to 
benefit from the above early intervention services; and transportation 
and related costs that are necessary to enable an infant or toddler and 
the infant's or toddler's family to receive early intervention services.
    (6) Are provided by qualified personnel, including: Special 
educators; speech and language pathologists and audiologists; 
occupational therapists; physical therapists; psychologists; social 
workers; nurses' nutritionists; family therapists; orientation and 
mobility specialists; and pediatricians and other physicians.
    (7) To the maximum extent appropriate, are provided in natural 
environments, including the home and community settings in which infants 
and toddlers without disabilities participate.
    (8) Are provided in conformity with an IFSP.
    (n) Evaluation. Procedures used to determine whether an individual 
(birth through 21 inclusive) has a disability under this part and the 
nature and extent of the early intervention services and special 
education and related services that the individual needs. These 
procedures must be used selectively with an individual and may not 
include basic tests administered to, or used with, all infants, 
toddlers, preschool children or children in a school, grade, class, 
program, or other grouping.
    (o) Family training, counseling, and home visits. Services provided, 
as appropriate, by social workers, psychologists, and other qualified 
personnel to assist the family of an infant or toddler eligible for 
early intervention services in understanding the special needs of the 
child and enhancing the infant or toddler's development.
    (p) Free appropriate public education. Special education and related 
services for children ages 3-21 years (inclusive) that:
    (1) Are provided at no cost (except as provided in paragraph (xx)(1) 
of this section, to parents or child with a disability and are under the 
general supervision and direction of a Section 6 School Arrangement.
    (2) Are provided at an appropriate preschool, elementary, or 
secondary school.
    (3) Are provided in conformity with an Individualized Education 
Program.
    (4) Meet the requirements of this part.
    (q) Frequency and intensity. The number of days or sessions that a 
service will be provided, the length of time that the service is 
provided during each session, whether the service is provided during 
each session, and whether the service is provided on an individual or 
group basis.
    (r) Health services. Services necessary to enable an infant or 
toddler, to benefit from the other early intervention services under 
this part during the time that the infant or toddler is receiving the 
other early intervention services. The term includes:
    (1) Such services as clean intermittent catheterization, 
tracheostomy care, tube feeding, the changing of dressings or osteotomy 
collection bags, and other health services.
    (2) Consultation by physicians with other service providers on the 
special health care needs of infants and toddlers with disabilities that 
will need to be addressed in the course of providing other early 
intervention services.
    (3) The term does not include the following:
    (i) Services that are surgical in nature or purely medical in 
nature.
    (ii) Devices necessary to control or treat a medical condition.
    (iii) Medical or health services that are routinely recommended for 
all infants or toddlers.
    (s) Hearing impairment. A hearing loss, whether permanent or 
fluctuating,

[[Page 415]]

that adversely affects an infant's, toddler's, preschool child's, or 
child's educational performance.
    (t) High probability for developmental delay. An infant or toddler 
with a medical condition that places him or her at substantial risk of 
evidencing a developmental delay before the age of 5 years without the 
benefit of early intervention services.
    (u) Include; such as. Not all the possible items are covered, 
whether like or unlike the ones named.
    (v) Independent evaluation. An evaluation conducted by a qualified 
examiner who is not employed by the DoD Section 6 Schools.
    (w) Individualized education program (IEP). A written statement for 
a preschool child or child with a disability (ages 3-21 years inclusive) 
developed and implemented in accordance with this part (appendix B to 
this part).
    (x) Individualized family service plan (IFSP). A written statement 
for an infant or toddler with a disability and his or her family that is 
based on a multidisciplinary assessment of the unique needs of the 
infant or toddler and concerns and the priorities of the family, and an 
identification of the services appropriate to meet such needs, concerns, 
and priorities.
    (y) Individuals with disabilities. Infants and toddlers with 
disabilities, preschool children with disabilities, and children with 
disabilities, collectively, ages birth to 21 years (inclusive) who are 
either entitled to enroll in a Section 6 School Arrangement or would, 
but for their age, be so entitled.
    (z) Infants and toddlers with disabilities. Individuals from birth 
to age 2 years (inclusive), who need early intervention services because 
they:
    (1) Are experiencing a developmental delay, as measured by 
appropriate diagnostic instruments and procedures, of 25 percent (or 2 
standard deviations below the mean), in one or more areas, or 20 percent 
(or 1\1/2\ standard deviations below the mean), in two or more of the 
following areas of development: Cognitive, physical, communication, 
social or emotional, or adaptive development.
    (2) Are at-risk for a developmental delay; i.e., have a diagnosed 
physical or mental condition that has a high probability of resulting in 
developmental delay; e.g., chromosomal disorders and genetic syndromes.
    (aa) Intercomponent. Cooperation among the DoD Components and 
programs so that coordination and integration of services to individuals 
with disabilities and their families occur.
    (bb) Medically related services. (1) Medical services (as defined in 
paragraph (cc) of this section) and those services provided under 
professional medical supervision that are required by a CSC either to 
determine a student's eligibility for special education or, if the 
student is eligible, the special education and related services required 
by the student under this part in accordance with 32 CFR part 345.
    (2) Provision of either direct or indirect services listed on an IEP 
as necessary for the student to benefit from the educational curriculum. 
These services may include: Medical; social work; community health 
nursing; dietary; psychiatric diagnosis; evaluation, and follow up; 
occupational therapy; physical therapy; audiology; ophthalmology; and 
psychological testing and therapy.
    (cc) Medical services. Those evaluative, diagnostic, and supervisory 
services provided by a licensed and credentialed physician to assist 
CSCs and to implement IEPs. Medical services include diagnosis, 
evaluation, and medical supervision of related services that by statute, 
regulation, or professional tradition are the responsibility of a 
licensed and credentialed physician.
    (dd) Mental retardation. Significantly subaverage general 
intellectual functioning, existing concurrently with deficits in 
adaptive behavior and manifested during the developmental period, that 
adversely affects a preschool child's or child's educational 
performance.
    (ee) Multidisciplinary. The involvement of two or more disciplines 
or professions in the provision of integrated and coordinated services, 
including evaluation and assessment activities, and development of an 
IFSP or IEP.
    (ff) Native language. When used with reference to an individual of 
limited English proficiency, the language normally used by such 
individuals, or in

[[Page 416]]

the case of an infant, toddler, preschool child or child, the language 
normally used by the parent of the infant, toddler, preschool child or 
child.
    (gg) Natural environments. Settings that are natural or normal for 
the infant or toddler's same age peers who have no disability.
    (hh) Non-section 6 school arrangement or facility. A public or 
private school or other institution not operated in accordance with 32 
CFR part 345. This term includes Section 6 special contractual 
arrangements.
    (ii) Nutrition services. These services include:
    (1) Conducting individual assessments in nutritional history and 
dietary intake; anthropometric, biochemical and clinical variables; 
feeding skills and feeding problems; and food habits and food 
preferences.
    (2) Developing and monitoring appropriate plans to address the 
nutritional needs of infants and toddlers eligible for early 
intervention services.
    (3) Making referrals to appropriate community resources to carry out 
nutrition goals.
    (jj) Orthopedic impairment. A severe physical impairment that 
adversely affects a child's educational performance. The term includes 
congenital impairments (such as club foot and absence of some member), 
impairments caused by disease (such as poliomyelitis and bone 
tuberculosis), and impairments from other causes such as cerebral palsy, 
amputations, and fractures or burns causing contracture.
    (kk) Other health impairment. Having an autistic condition that is 
manifested by severe communication and other developmental and 
educational problems; or having limited strength, vitality, or alertness 
due to chronic or acute health problems that adversely affect a child's 
educational performance as determined by the CSC, such as: ADD, heart 
condition, tuberculosis, rheumatic fever, nephritis, asthma, sickle cell 
anemia, hemophilia, epilepsy, lead poisoning, leukemia, and diabetes.
    (ll) Parent. The biological father or mother of a child; a person 
who, by order of a court of competent jurisdiction, has been declared 
the father or mother of a child by adoption; the legal guardian of a 
child; or a person in whose household a child resides, provided that 
such person stands in loco parentis to that child and contributes at 
least one-half of the child's support.
    (mm) Personally identifiable information. Information that includes 
the name of the infant, toddler, preschool child, child, parent or other 
family member; the home address of the infant, toddler, preschool child, 
child, parent or other family member; another personal identifier, such 
as the infant's, toddler's, preschool child's, child's, parent's or 
other family member's social security number; or a list of personal 
characteristics or other information that would make it possible to 
identify the infant, toddler, preschool child, child, parent, or other 
family member with reasonable certainty.
    (nn) Preschool children with disabilities. These are students, ages 
3-5 years (inclusive), who need special education services because they:
    (1) Are experiencing developmental delays, as measured by 
appropriate diagnostic instruments and procedures in one or more of the 
following areas: Cognitive development, physical development, 
communication development, social or emotional development, and adaptive 
development; and
    (2) Who, by reason thereof, need special education and related 
services.
    (oo) Primary referral source. The DoD Components, including child 
care centers, pediatric clinics, and parents that suspect an infant, 
toddler, preschool child or child has a disability and bring that 
infant, toddler, preschool child or child to the attention of the Early 
Intervention Program or school CSC.
    (pp) Public awareness program. Activities focusing on early 
identification of infants and toddlers with disabilities, including the 
preparation and dissemination by the military medical department to all 
primary referral sources of information materials for parents on the 
availability of early intervention services. Also includes procedures 
for determining the extent to which primary referral sources within the 
Department of Defense, especially within DoD medical treatment 
facilities, and physicians disseminate information on the availability 
of early intervention

[[Page 417]]

services to parents of infants or toddlers with disabilities.
    (qq) Qualified. With respect to instructional personnel, a person 
who holds at a minimum a current and applicable teaching certificate 
from any of the 50 States, Puerto Rico, or the District of Columbia, or 
has met other pertinent requirements in the areas in which he or she is 
providing special education or related services not of a medical nature 
to children with disabilities. Providers of early intervention services 
and medically related services must meet standards established by the 
ASD(HA).
    (rr) Related services. This includes transportation, and such 
developmental, corrective, and other supportive services (including 
speech pathology and audiology; psychological services; physical and 
occupational therapy; recreation, including therapeutic recreation and 
social work services; and medical and counseling services), including 
rehabilitation counseling (except that such medical services shall be 
for diagnostic and evaluative purposes only) as may be required to 
assist a child with a disability to benefit from special education, and 
includes the early identification and assessment of disabling conditions 
in preschool children or children. The following list of related 
services is not exhaustive and may include other developmental, 
corrective, or supportive services (such as clean intermittent 
catheterization), if they are required to assist a child with a 
disability to benefit from special education, as determined by a CSC.
    (1) Audiology. This term includes:
    (i) Audiological, diagnostic, and prescriptive services provided by 
audiologists who have a Certificate of Clinical Competence--Audiology 
(CCC-A) and pediatric experience. Audiology shall not include speech 
therapy.
    (ii) Identification of children with hearing loss.
    (iii) Determination of the range, nature, and degree of hearing 
loss, including referral for medical or other professional attention 
designed to ameliorate or correct that loss.
    (iv) Provision of ameliorative and corrective activities, including 
language and auditory training, speech-reading (lip-reading), hearing 
evaluation, speech conservation, the recommendation of amplification 
devices, and other aural rehabilitation services.
    (v) Counseling and guidance of children, parents, and service 
providers regarding hearing loss.
    (vi) Determination of the child's need for group and individual 
amplification, selecting and fitting an appropriate aid, and evaluating 
the effectiveness of amplification.
    (2) Counseling services. Services provided by qualified social 
workers, psychologists, guidance counselors, or other qualified 
personnel to help a preschool child or child with a disability to 
benefit from special education.
    (3) Early identification. The implementation of a formal plan for 
identifying a disability as early as possible in the individual's life.
    (4) Medical services. Those evaluative, diagnostic, and supervisory 
services provided by a licensed and credentialed physician to assist 
CSCs in determining whether a child has a medically related disability 
condition that results in the child's need for special education and 
related services and to implement IEPs. Medical services include 
diagnosis, evaluation, and medical supervision of related services that, 
by statute, regulation, or professional tradition, are the 
responsibility of a licensed and credentialed physician.
    (5) Occupational therapy. Therapy that provides developmental 
evaluations and treatment programs using selected tasks to restore, 
reinforce, or enhance functional performance. It addresses the quality 
and level of functions in areas such as behavior, motor coordination, 
spatial orientation; visual motor and sensory integration; and general 
activities of daily living. This therapy, which is conducted or 
supervised by a qualified occupational therapist, provides training and 
guidance in using special equipment to improve the patient's functioning 
in skills of daily living, work, and study.
    (6) Parent counseling and training. Assisting parents in 
understanding the special needs of their preschool child or child and 
providing parents with information about child development and special 
education.

[[Page 418]]

    (7) Physical therapy. Therapy that provides evaluations and 
treatment programs using exercise, modalities, and adaptive equipment to 
restore, reinforce, or enhance motor performance. It focuses on the 
quality of movement, reflex development, range of motion, muscle 
strength, gait, and gross motor development, seeking to decrease 
abnormal movement and posture while facilitating normal movement and 
equilibrium reactions. The therapy, which is conducted by a qualified 
physical therapist, provides for measurement and training in the use of 
adaptive equipment and prosthetic and orthotic appliances. Therapy may 
be conducted by a qualified physical therapist assistant under the 
clinical supervision of a qualified physical therapist.
    (8) Psychological services. Services listed in paragraphs (rr) (8) 
(i) through (rr) (8) (iv) of this section that are provided by a 
qualified psychologist:
    (i) Administering psychological and educational tests and other 
assessment procedures.
    (ii) Interpreting test and assessment results.
    (iii) Obtaining, integrating, and interpreting information about a 
preschool child's or child's behavior and conditions relating to his or 
her learning.
    (iv) Consulting with other staff members in planning school programs 
to meet the special needs of preschool children and children, as 
indicated by psychological tests, interviews, and behavioral 
evaluations.
    (v) Planning and managing a program of psychological services, 
including psychological counseling for preschool children, children, and 
parents. For the purpose of these activities, a qualified psychologist 
is a psychologist licensed in a State of the United States who has a 
degree in clinical or school psychology and additional pediatric 
training and/or experience.
    (9) Recreation. This term includes:
    (i) Assessment of leisure activities.
    (ii) Therapeutic recreational activities.
    (iii) Recreational programs in schools and community agencies.
    (iv) Leisure education.
    (10) School health services. Services provided, pursuant to an IEP, 
by a qualified school health nurse, or other qualified person, that are 
required for a preschool child or child with a disability to benefit 
from special education.
    (11) Social work counseling services in schools. This term includes:
    (i) Preparing a social and developmental history on a preschool 
child or child identified as having a disability.
    (ii) Counseling the preschool child or child with a disability and 
his or her family on a group or individual basis, pursuant to an IEP.
    (iii) Working with problems in a preschool child's or child's living 
situation (home, school, and community) that adversely affect his or her 
adjustment in school.
    (iv) Using school and community resources to enable the preschool 
child or child to receive maximum benefit from his or her educational 
program.
    (12) Speech pathology. This term includes the:
    (i) Identification of preschool children and children with speech or 
language disorders.
    (ii) Diagnosis and appraisal of specific speech or language 
disorders.
    (iii) Referral for medical or other professional attention to 
correct or ameliorate speech or language disorders.
    (iv) Provision of speech and language services for the correction, 
amelioration, and prevention of communicative disorders.
    (v) Counseling and guidance of preschool children, children, 
parents, and teachers regarding speech and language disorders.
    (13) Transportation. This term includes transporting the individual 
with a disability and, when necessary, an attendant or family member or 
reimbursing the cost of travel ((e.g., mileage, or travel by taxi, 
common carrier or other means) and related costs (e.g., tolls and 
parking expenses)) when such travel is necessary to enable a preschool 
child or child to receive special education (including related services) 
or an infant or toddler and the infant's or toddler's family to receive 
early intervention services. Transportation services include:

[[Page 419]]

    (i) Travel to and from school and between schools, including travel 
necessary to permit participation in educational and recreational 
activities and related services.
    (ii) Travel from school to a medically related service site and 
return.
    (iii) Travel in and around school buildings.
    (iv) Travel to and from early intervention services.
    (v) Specialized equipment (including special or adapted buses, 
lifts, and ramps) if required to provide special transportation for an 
individual with a disability.
    (vi) If necessary, attendants assigned to vehicles transporting an 
individual with a disability when that individual requires assistance to 
be safely transported.
    (ss) Section 6 School Arrangement. The schools (pre-kindergarten 
through grade 12) operated by the Department of Defense within the 
CONUS, Alaska, Hawaii, Puerto Rico, Wake Island, Guam, American Samoa, 
the Northern Mariana Islands, and the Virgin Islands. Section 6 School 
Arrangements are operated under DoD Directive 1342.21.\4\
---------------------------------------------------------------------------

    \4\ See footnote 1 to Sec. 80.1(c).
---------------------------------------------------------------------------

    (tt) Separate facility. A school or a portion of a school, 
regardless of whether it is used by the Section 6 School Arrangement, 
that is only attended by children with disabilities.
    (uu) Serious emotional disturbance. The term includes:
    (1) A condition that has been confirmed by clinical evaluation and 
diagnosis and that, over a long period of time and to a marked degree, 
adversely affects educational performance and that exhibits one or more 
of the following characteristics:
    (i) An inability to learn that cannot be explained by intellectual, 
sensory, or health factors.
    (ii) An inability to build or maintain satisfactory interpersonal 
relationships with peers and teachers.
    (iii) Inappropriate types of behavior under normal circumstances.
    (iv) A tendency to develop physical symptoms or fears associated 
with personal or school problems.
    (v) A general, pervasive mood of unhappiness or depression.
    (2) Schizophrenia, but does not include children who are socially 
maladjusted, unless it is determined that they are otherwise seriously 
emotionally disturbed.
    (vv) Service provider. Any individual who provides services listed 
in an IEP or an IFSP.
    (ww) Social work services. This term includes:
    (1) Preparing a social or developmental history on an infant, 
toddler, preschool child or child with a disability.
    (2) Counseling with the infant, toddler, preschool child or child 
and family in a group or individual capacity.
    (3) Working with individuals with disabilities (0-21 inclusive) in 
the home school, and/or community environment to ameliorate those 
conditions that adversely affect development or educational performance.
    (4) Using school and community resources to enable the child to 
receive maximum benefit from his or her educational program or for the 
infant, toddler, and family to receive maximum benefit from early 
intervention services.
    (xx) Special education. Specially designed instruction, at no cost 
to the parent, to meet the unique needs of a preschool child or child 
with a disability, including instruction conducted in the classroom, in 
the home, in hospitals and institutions, and in other settings, and 
instruction in physical education. The term includes speech pathology or 
any other related service, if the service consists of specially designed 
instruction, at no cost to the parents, to meet the unique needs of a 
preschool child or child with a disability, and is considered ``special 
education'' rather than a ``related service.'' The term also includes 
vocational education if it consists of specially designed instruction, 
at no cost to the parents, to meet the unique needs of a child with a 
disability.
    (1) At no cost. With regard to a preschool child or child eligible 
to attend Section 6 School Arrangements, specially designed instruction 
and related services are provided without charge, but incidental fees 
that are normally

[[Page 420]]

charged to nondisabled students, or their parents, as a part of the 
regular educational program may be imposed.
    (2) Physical education. The development of:
    (i) Physical and motor fitness.
    (ii) Fundamental motor skills and patterns.
    (iii) Skills in aquatics, dance, and individual and group games and 
sports (including intramural and lifetime sports).
    (iv) A program that includes special physical education, adapted 
physical education, movement education, and motor development.
    (3) Vocational education. This term means organized educational 
programs that are directly related to the preparation of individuals for 
paid or unpaid employment, or for additional preparation for a career 
requiring other than a baccalaureate or advanced degree.
    (yy) Special instruction. This term includes:
    (1) Designing learning environments and activities that promote the 
infant's, toddler's, preschool child's or child's acquisition of skills 
in a variety of developmental areas, including cognitive processes and 
social interaction.
    (2) Planning curriculum, including the planned interaction of 
personnel, materials, and time and space, that leads to achieving the 
outcomes in the infant's, toddler's, preschool child's or child's IEP or 
IFSP.
    (3) Providing families with information, skills, and support related 
to enhancing the skill development of the infant, toddler, or preschool 
child or child.
    (4) Working with the infant, toddler, preschool child, or child to 
enhance the infant's, toddler's, preschool child's or child's 
development and cognitive processes.
    (zz) Specific learning disability. A disorder in one or more of the 
basic psychological processes involved in understanding or in using 
spoken or written language that may manifest itself as an imperfect 
ability to listen, think, speak, read, write, spell, or do mathematical 
calculations. The term includes such conditions as perceptual 
disabilities, brain injury, minimal brain dysfunction, dyslexia, and 
developmental aphasia. The term does not include preschool children or 
children who have learning problems that are primarily the result of 
visual, hearing, or motor disabilities, mental retardation, emotional 
disturbance, or environmental, cultural, or economic differences.
    (aaa) Speech and language impairments. A communication disorder, 
such as stuttering, impaired articulation, voice impairment, or a 
disorder in the receptive or expressive areas of language that adversely 
affects a preschool child's or child's educational performance.
    (bbb) Superintendent. The chief official of a Section 6 School 
Arrangement responsible for the implementation of this part on his or 
her installation.
    (ccc) Transition services. A coordinated set of activities for a 
toddler that may be required to promote movement from early 
intervention, preschool, and other educational programs into different 
programs or educational settings. For a student 14 years of age and 
older, transition services are designed within an outcome-oriented 
process, which promotes movement from school to post-school activities, 
including post-secondary education, vocational training, integrated 
employment (including supported employment), continuing and adult 
education, adult services, independent living, or community 
participation. The coordinated set of activities shall be based upon the 
individual student's needs, taking into account the student's 
preferences and interests, and shall include instruction, community 
experiences, the development of employment and other post-school adult 
living objectives, and when appropriate, acquisition of daily living 
skills and functional vocational evaluation.
    (ddd) Traumatic brain injury. An injury to the brain caused by an 
external physical force or by an internal occurrence, such as stroke or 
aneurysm, resulting in total or partial functional disability or 
psychosocial maladjustment that adversely affects educational 
performance. The term includes open or closed head injuries resulting in 
mild, moderate, or severe impairments in one or more areas, including 
cognition; language, memory;

[[Page 421]]

attention; reasoning; abstract thinking; judgment; problem solving; 
sensory; perceptual and motor abilities; psychosocial behavior; physical 
function; and information processing and speech. The term does not 
include brain injuries that are congenital or degenerative or brain 
injuries that are induced by birth trauma.
    (eee) Vision services. Services necessary to ameliorate the effects 
of sensory impairment resulting from a loss of vision.
    (fff) Visual impairment. A sensory impairment including blindness 
that, even with correction, adversely affects a preschool child's or 
child's educational performance. The term includes both partially seeing 
and blind preschool children and children.



Sec. 80.4  Policy.

    It is DoD policy that:
    (a) All individuals with disabilities ages 3 to 21 years receiving 
or entitled to receive educational instruction from the Section 6 School 
Arrangements shall be provided a free, appropriate education under this 
part in accordance with the IDEA as amended, 20 U.S.C. Chapter 33; Pub. 
L. 102-119, Section 23; and DoD Directive 1342.21.
    (b) All individuals with disabilities ages birth through 2 years 
(inclusive) and their families are entitled to receive early 
intervention services under this part, provided that such infants and 
toddlers would be eligible to enroll in a Section 6 School Arrangement 
but for their age.



Sec. 80.5  Responsibilities.

    (a) The Under Secretary of Defense for Personnel and Readiness 
(USD(P&R)) shall:
    (1) Ensure that all infants and toddlers with disabilities (birth 
through 2 years inclusive) who but for their age would be eligible to 
attend the Section 6 Arrangement Schools, and their families are 
provided early intervention services in accordance with IDEA as amended, 
(20 U.S.C., Chapter 33, Subchapter VIII.) and in conformity with the 
procedures in appendix A to this part.
    (2) Ensure that preschool children and children with disabilities 
ages 3-21 years (inclusive) receiving educational instruction from 
Section 6 School Arrangements are provided a free appropriate public 
education and that the educational needs of such preschool children and 
children with disabilities are met using the procedures established by 
this part.
    (3) Ensure that educational facilities and services provided by 
Section 6 School Arrangements for preschool children and children with 
disabilities are comparable to educational facilities and services for 
non-disabled students.
    (4) Maintain records on special education and related services 
provided to children with disabilities, consistent with 32 CFR part 310.
    (5) Ensure the provision of all necessary diagnostic services and 
special education and related services listed on an IEP (including those 
supplied by or under the supervision of physicians) to preschool 
children and children with disabilities who are enrolled in Section 6 
School Arrangements. In fulfilling this responsibility, (USD(P&R)), or 
designee, may use intercomponent arrangements, or act through contracts 
with private parties, when funds are authorized and appropriated.
    (6) Develop and implement a comprehensive system of personnel 
development, in accordance with 20 U.S.C. 1413-(a)(3), for all 
professional staff employed by a Section 6 School Arrangement. This 
system shall include:
    (i) Inservice training of general and special educational 
instructional and support personnel,
    (ii) Implementing innovative strategies and activities for the 
recruitment and retention of medically related service providers,
    (iii) Detailed procedures to assure that all personnel necessary to 
carry out the purposes of this part are appropriately and adequately 
prepared and trained, and
    (iv) Effective procedures for acquiring and disseminating to 
teachers and administrators of programs for children with disabilities 
significant information derived from educational research, 
demonstration, and similar projects, and
    (v) Adopting, where appropriate, promising practices, materials, and 
technology.

[[Page 422]]

    (7) Provide technical assistance to professionals in Section 6 
School Arrangements involved in, or responsible for, the education of 
preschool children or children with disabilities.
    (8) Ensure that child-find activities are coordinated with other 
relevant components and are conducted to locate and identify every 
individual with disabilities.
    (9) Issue guidance implementing this part.
    (10) Undertake evaluation activities to ensure compliance with this 
part through monitoring, technical assistance, and program evaluation.
    (11) Chair the DoD Coordinating Committee on Domestic Early 
Intervention, Special Education, and Related Services, which shall be 
composed of representatives of the Secretaries of the Military 
Departments, the Assistant Secretary of Defense for Health Affairs 
(ASD(HA)), the General Counsel of the Department of Defense (GC, DoD), 
and the Director, Section 6 Schools.
    (12) Through the DoD Coordinating Committee on Demestic Early 
Intervention, Special Education, and Related Services, monitor the 
provision of special education and related services and early 
intervention services furnished under this part, and ensure that related 
services, special education, and early intervention services are 
properly coordinated.
    (13) Ensure that appropriate personnel are trained to provide 
mediation services in cases that otherwise might result in due process 
proceedings under this part.
    (14) Ensure that transition services from early intervention 
services to regular or special education and from special education to 
the world of work are provided.
    (15) Ensure that all DoD programs that provide services to infants 
and toddlers and their families (e.g., child care, medical care, 
recreation) are involved in a comprehensive intercomponent system for 
early intervention services.
    (16) Ensure, whenever practicable, that planned construction not yet 
past the 35 percent design phase and new design begun after the date of 
this part of renovation of school or child care facilities includes 
consideration of the space required for the provision of medically 
related services and early intervention services.
    (17) Shall establish the Domestic Advisory Panel that shall:
    (i) Consist of members appointed by the USD (P&R) or Principal 
Deputy USD (P&R). Membership shall include at least one representative 
from each of the following groups:
    (A) Individuals with disabilities.
    (B) Parents, including minority parents of individuals with 
disabilities from various age groups.
    (C) Section 6 School Arrangements special education teachers.
    (D) Section 6 School Arrangements regular education teachers.
    (E) Section 6 School Arrangements Superintendent office personnel.
    (F) The Office of Director, Section 6 Schools.
    (G) The Surgeons General of the Military Departments.
    (H) The Family Support Programs of the Military Departments.
    (I) Section 6 School Arrangements School Boards.
    (J) Early Intervention service providers on installations with 
Section 6 School Arrangements.
    (K) Other appropriate personnel.
    (ii) Meet as often as necessary.
    (iii) Perform the following duties:
    (A) Review information and provide advice to ASD (P&R) regarding 
improvements in services provided to individuals with disabilities in 
Section 6 Schools and early intervention programs.
    (B) Receive and consider the views of various parent, student, and 
professional groups, and individuals with disabilities.
    (C) When necessary, establish committees for short-term purposes 
composed of representatives from parent, student, family and other 
professional groups, and individuals with disabilities.
    (D) Review the findings of fact and decision of each impartial due 
process hearing conducted pursuant to this part.
    (E) Assist in developing and reporting such information and 
evaluations as may aid Section 6 Schools and the

[[Page 423]]

Military Departments in the performance of duties under the part.
    (F) Make recommendations, based on program and operational 
information, for changes in the budget, organization, and general 
management of the special education program, and in policy and 
procedure.
    (G) Comment publicly on rules or standards regarding the education 
of individuals with disabilities.
    (H) Assist in developing recommendations regarding the transition of 
toddlers with disabilities to preschool services.
    (b) The Assistant Secretary of Defense for Health Affairs in 
consultation with the USD(P&R), the GC, DoD, and the Secretaries of the 
Military Departments, shall:
    (1) Establish staffing and personnel standards for personnel who 
provide early intervention services and medically related services.
    (2) Develop and implement a comprehensive system of personnel 
development in accordance with 20 U.S.C. 1413(a)(3), including the 
training of professionals, paraprofessionals and primary referral 
sources, regarding the basic components of early intervention services 
and medically related services. Such a system may include:
    (i) Implementing innovative strategies and activities for the 
recruitment and retention of early intervention service providers.
    (ii) Ensuring that early intervention service providers and 
medically related service providers are fully and appropriately 
qualified to provide early intervention services and medically related 
services, respectively.
    (iii) Training personnel to work in the military environment.
    (iv) Training personnel to coordinate transition services for 
infants and toddlers with disabilities from an early intervention 
program to a preschool program.
    (3) Develop and implement a system for compiling data on the numbers 
of infants and toddlers with disabilities and their families in need of 
appropriate early intervention services, the numbers of such infants and 
toddlers and their families served, the types of services, and other 
information required to evaluate the implementation of early 
intervention programs.
    (4) Resolve disputes among the DoD Components arising under appendix 
A of this part.
    (c) Secretaries of the Military Departments shall:
    (1) Provide quality assurance for medically related services in 
accordance with personnel standards and staffing standards under DoD 
Directive 6025.13 \5\ developed by the Assistant Secretary of Defense 
for Health Affairs (ASD(HA)).
---------------------------------------------------------------------------

    \5\ See footnote 1 to Sec. 80.1(c).
---------------------------------------------------------------------------

    (2) Plan, develop, and implement a comprehensive, coordinated, 
intercomponent, community-based system of early intervention services 
for infants and toddlers with disabilities (birth through 2 inclusive) 
and their families who are living on an installation with a Section 6 
School Arrangement, or who but for their age, would be entitled to 
enroll in a Section 6 School Arrangement, using the procedures 
established by this part and guidelines from the ASD(HA) on staffing and 
personnel standards.
    (3) Undertake activities to ensure compliance with this part through 
technical assistance, program evaluation, and monitoring.
    (d) The Director, Defense Office of Hearings and Appeals (DOHA) 
shall ensure the provision of impartial due process hearings under 
appendix C of this part.



Sec. 80.6  Procedures.

    (a) Procedures for the provision of early intervention services for 
infants and toddlers with disabilities and their families are in 
appendix A to this part. Provision of early intervention services 
includes establishing a system of coordinated, comprehensive, 
multidisciplinary, intercomponent services providing appropriate early 
intervention services to all eligible infants and toddlers with 
disabilities and their families.
    (b) Procedures for special educational programs (including related 
services) for preschool children and children with disabilities (3-21 
years inclusive) are in appendix B to this part.

[[Page 424]]

    (c) Procedures for adjudicative requirements required by Pub. L. 
101-476, as amended, and Pub. L. 102-119 are in appendix C to this part. 
These procedures establish adjudicative requirements whereby the parents 
of an infant, toddler, preschool child or child with a disability and 
the military department concerned or Section 6 School System are 
afforded an impartial due process hearing on early intervention services 
or on the identification, evaluation, and educational placement of, and 
the free appropriate public education provided to, such infant, toddler, 
preschool child or child, as the case may be.

      Appendix A to Part 80--Procedures For The Provision of Early 
 Intervention Services for Infants And Toddlers With Disabilities, Ages 
                0-2 years (Inclusive), And Their Families

       A. Requirements For A System of Early Intervention Services

    1. A system of coordinated, comprehensive, multidisciplinary, and 
intercomponent programs providing appropriate early intervention 
services to all infants and toddlers with disabilities and their 
families shall include the following minimum components:
    a. A timely, comprehensive, multidisciplinary evaluation of the 
functioning of each infant and toddler with a disability and the 
priorities and concerns of the infant's or toddler's family to assist in 
the development of the infant or toddler with a disability.
    b. A mechanism to develop, for each infant and toddler with a 
disability, an IFSP and early intervention services coordination, in 
accordance with such service plan.
    c. A comprehensive child-find system, coordinated with the 
appropriate Section 6 School Arrangement, including a system for making 
referrals to service providers that includes timelines and provides for 
participation by primary referral sources, such as the CDC and the 
pediatric clinic.
    d. A public awareness program including information on early 
identification of infants and toddlers with disabilities and the 
availability of resources in the community to address and remediate 
these disabilities.
    e. A central directory that includes a description of the early 
intervention services and other relevant resources available in the 
community.

B. Each Military Medical Department Shall Develop and Implement a System 
                             to Provide for:

    1. The administration and supervision of early intervention programs 
and services, including the identification and coordination of all 
available resources.
    2. The development of procedures to ensure that services are 
provided to infants and toddlers with disabilities and their families in 
a timely manner.
    3. The execution of agreements with other DoD components necessary 
for the implementation of this appendix. Such agreements must be 
coordinated with the ASD(HA) and the GC, DoD, in consultation with the 
USD(P&R).
    4. The collection and reporting of data required by ASD(HA).
    5. A multidisciplinary assessment of the unique strengths and needs 
of the infant or toddler and the identification of services appropriate 
to meet such needs.
    6. A family-directed assessment of the resources, priorities, and 
concerns of the family and the identification of the supports and 
services necessary to enhance the family's capacity to meet the 
developmental needs of its infant or toddler with a disability.

   C. Each Military Medical Department Shall Develop and Implement a 
 Program to Ensure That an IFSP is Developed for Each Infant or Toddler 
With a Disability and the Infant's or Toddler's Family According to the 
                          Following Procedures:

    1. The IFSP shall be evaluated once a year and the family shall be 
provided a review of the plan at 6-month intervals (or more often where 
appropriate), based on the needs of the infant or toddler and family.
    2. Each initial meeting and each annual meeting to evaluate the IFSP 
must include the following participants:
    a. The parent or parents of the infant or toddler.
    b. Other family members, as requested by a parent, if feasible to do 
so.
    c. An advocate, if his or her participation is requested by a 
parent.
    d. The Early Intervention Program Services Coordinator who has been 
working with the family since the initial referral of the infant or 
toddler or who has been designated as responsible for the implementation 
of the IFSP.
    e. A person or persons directly involved in conducting the 
evaluation and assessments.
    f. Persons who will be providing services to the infant, toddler, or 
family, as appropriate.
    g. If a person or persons listed in paragraph C.2 of this section is 
unable to attend a meeting, arrangements must be made for involvement 
through other means, including:
    (1) Participating in a telephone call.
    (2) Having a knowledgeable authorized representative attend the 
meeting.
    (3) Making pertinent records available at the meeting.
    3. The IFSP shall be developed within a reasonable time after the 
assessment. With the parent's consent, early intervention

[[Page 425]]

services may start before the completion of such an assessment under an 
IFSP.
    4. The IFSP shall be in writing and contain:
    a. A statement of the infant's or toddler's present levels of 
physical development, cognitive development, communication development, 
social or emotional development, and adaptive development, based on 
acceptable objective criteria.
    b. A statement of the family's resources, priorities, and concerns 
for enhancing the development of the family's infant or toddler with a 
disability.
    c. A statement of the major outcomes expected to be achieved for the 
infant or toddler and the family, and the criteria, procedures, and 
timelines used to determine the degree to which progress toward 
achieving the outcomes is being made and whether modifications or 
revisions of the outcomes or services are necessary.
    d. A statement of the specific early intervention services necessary 
to meet the unique needs of the infant or toddler and the family, 
including the frequency, intensity, and the method of delivering 
services.
    e. A statement of the natural environments in which early 
intervention services shall be provided.
    f. The projected dates for initiation of services and the 
anticipated duration of such services.
    g. The name of the Early Intervention Program Service Coordinator.
    h. The steps to be taken supporting the transition of the toddler 
with a disability to preschool services or other services to the extent 
such services are considered appropriate.
    5. The contents of the IFSP shall be fully explained to the parents 
by the Early Intervention Program Service Coordinator, and informed 
written consent from such parents shall be obtained before the provision 
of early intervention services described in such plan. If the parents do 
not provide such consent with respect to a particular early intervention 
service, then the early intervention services to which such consent is 
obtained shall be provided.

       D. Procedural Safeguards for the Early Intervention Program

    1. The procedural safeguards include:
    a. The timely administrative resolution of complaints by the 
parent(s), including hearing procedures (appendix C to this part).
    b. The right to protection of personally identifiable information 
under 32 CFR part 310.
    c. The right of the parent(s) to determine whether they, their 
infant or toddler, or other family members will accept or decline any 
early intervention service without jeopardizing the delivery of other 
early intervention services to which such consent is obtained.
    d. The opportunity for the parent(s) to examine records on 
assessment, screening, eligibility determinations, and the development 
and implementation of the IFSP.
    e. Written prior notice to the parent(s) of the infant or toddler 
with a disability whenever the Military Department concerned proposes to 
initiate or change or refuses to initiate or change the identification, 
evaluation, placement, or the provision of appropriate early 
intervention services to the infant and toddler with a disability.
    f. Procedures designed to ensure that the notice required in 
paragraph D.1.e. of this appendix fully informs the parents in the 
parents' native language, unless it clearly is not feasible to do so.
    g. During the pending of any proceeding under appendix C to this 
part, unless the Military Department concerned and the parent(s) 
otherwise agree, the infant or toddler shall continue to receive the 
early intervention services currently being provided, or, if applying 
for initial services, shall receive the services not in dispute.

   Appendix B to Part 80--Procedures for Special Educational Programs 
 (Including Related Services) for Preschool Children and Children with 
                   Disabilities (3-21 years Inclusive)

                     A. Identification and Screening

    1. Each Section 6 School Arrangement shall locate, identify, and, 
with the consent of a parent of each preschool child or child, evaluate 
all preschool children or children who are receiving or are entitled to 
receive an education from Section 6 School Arrangements and who may need 
special education and/or related services.
    2. Each Section 6 School Arrangement shall:
    a. Provide screening, through the review of incoming records and the 
use of basic skills tests in reading, language arts, and mathematics, to 
determine whether a preschool child or child may be in need of special 
education and related services.
    b. Analyze school health data for those preschool children and 
children who demonstrate possible disabling conditions. Such data shall 
include:
    (1) Results of formal hearing, vision, speech, and language tests.
    (2) Reports from medical practitioners.
    (3) Reports from other appropriate professional health personnel as 
may be necessary, under this part, to aid in identifying possible 
disabling conditions.
    c. Analyze other pertinent information, including suspensions, 
exclusions, other disciplinary actions, and withdrawals, compiled

[[Page 426]]

and maintained by Section 6 School Arrangements that may aid in 
identifying possible disabling conditions.
    3. Each Section 6 School Arrangement, in cooperation with cognizant 
authorities at the installation on which the Section 6 School 
Arrangement is located, shall conduct ongoing child-find activities that 
are designed to identify all infants, toddlers, preschool children, and 
children with possible disabling conditions who reside on the 
installation or who otherwise either are entitled, or will be entitled, 
to receive services under this part.
    a. If an element of the Section 6 School Arrangement, a qualified 
professional authorized to provide related services, a parent, or other 
individual believes that an infant, toddler, preschool child or child 
has a possible disabling condition, that individual shall be referred to 
the appropriate CSC or early intervention coordinator.
    b. A Section 6 School Arrangement CSC shall work in cooperation with 
the Military Departments in identifying infants, toddlers, preschool 
children and children with disabilities (birth to 21 years inclusive).

                        B. Evaluation Procedures

    1. Each CSC will provide a full and comprehensive diagnostic 
evaluation of special educational, and related service needs to any 
preschool child or child who is receiving, or entitled to receive, 
educational instruction from a Section 6 School Arrangement, operated by 
the Department of Defense under Directive 1342.21, and who is referred 
to a CSC for a possible disability. The evaluation will be conducted 
before any action is taken on the development of the IEP or placement in 
a special education program.
    2. Assessment materials, evaluation procedures, and tests shall be:
    a. Racially and culturally nondiscriminatory.
    b. Administered in the native language or mode of communication of 
the preschool child or child unless it clearly is not feasible to do so.
    c. Validated for the specific purpose for which they are used or 
intended to be used.
    d. Administered by qualified personnel, such as a special educator, 
school psychologist, speech therapist, or a reading specialist, in 
conformity with the instructions provided by the producers of the 
testing device.
    e. Administered in a manner so that no single procedure is the sole 
criterion for determining eligibility and an appropriate educational 
program for a disabled preschool child or child.
    f. selected to assess specific areas of educational strengths and 
needs, not merely to provide a single general intelligence quotient.
    3. The evaluation shall be conducted by a multidisciplinary team and 
shall include a teacher or other specialist with knowledge in the areas 
of the suspected disability.
    4. The preschool child or child shall be evaluated in all areas 
related to the suspected disability. When necessary, the evaluation 
shall include:
    a. The current level of academic functioning, to include general 
intelligence.
    b. Visual and auditory acuity.
    c. Social and emotional status, to include social functioning within 
the educational environment and within the family.
    d. Current physical status, including perceptual and motor 
abilities.
    e. Vocational transitional assessment (for children ages 14-21 years 
(inclusive)).
    5. The appropriate CSC shall met as soon as possible after the 
preschool child's or child's formal evaluation to determine whether he 
or she is in need of special education and related services. The 
preschool child's or child's parents shall be invited to the meeting and 
afforded the opportunity to participate in such a meeting.
    6. The school CSC shall issue a written report that contains:
    a. A review of the formal and informal diagnostic evaluation 
findings of the multidisciplinary team.
    b. A summary of information from the parents, the preschool child or 
child, or other persons having significant previous contact with the 
preschool child or child.
    c. A description of the preschool child's or child's current 
academic progress, including a statement of his or her learning style.
    d. A description of the nature and severity of the preschool child's 
or child's disability(ies).
    7. A preschool child or child with a disability shall receive an 
individual comprehensive diagnostic evaluation every 3 years, or more 
frequently if conditions warrant, or if the preschool child's or child's 
parent, teacher, or related service provider requests an evaluation. The 
scope and nature of the reevaluation shall be determined individually, 
based upon the preschool child's or child's performance, behavior, and 
needs when the reevaluation is conducted, and be used to update or 
revise the IEP.

                C. Individualized Education Program (IEP)

    1. Section 6 School Arrangements shall ensure that an IEP is 
developed and implemented for each preschool child or child with a 
disability enrolled in a Section 6 School Arrangement or placed on 
another institution by a Section 6 School Arrangement CSC under this 
part.
    2. Each IEP shall include:
    a. A statement of the preschool child's or child's present levels of 
educational performance.
    b. A statement of annual goals, including short-term instructional 
objectives.

[[Page 427]]

    c. A statement of the specific special educational services and 
related services to be provided to the preschool child or child 
(including the frequency, number of times per week/month and intensity, 
amount of times each day) and the extent to which the preschool child or 
child may be able to participate in regular educational programs.
    d. The projected anticipated date for the initiation and the 
anticipated length of such activities and services.
    e. Appropriate objective criteria and evaluation procedures and 
schedules for determining, on an annual basis, whether educational goals 
and objectives are being achieved.
    f. A statement of the needed transition services for the child 
beginning no later than age 16 and annually thereafter (and when 
determined appropriate for the child, beginning at age 14 or younger) 
including, when appropriate, a statement of DoD Component 
responsibilities before the child leaves the school setting.
    3. Each preschool child or child with a disability shall be provided 
the opportunity to participate, with adaptations when appropriate, in 
the regular physical education program available to students without 
disabilities unless:
    a. The preschool child or child with a disability is enrolled full-
time in a separate facility; or
    b. The preschool child or child with a disability needs specially 
designed physical education, as prescribed in his or her IEP.
    4. If specially designed physical education services are prescribed 
in the IEP of a preschool child or child with a disability, the Section 
6 School Arrangement shall provide such education directly, or shall 
make arrangements for the services to be provided through a non-Section 
6 School Arrangement or another facility.
    5. Section 6 School Arrangements shall ensure that a preschool child 
or child with a disability, enrolled by a CSC in a separate facility, 
receives appropriate, physical education in compliance with this part.
    6. The IEP for each preschool child or child with a disability shall 
be developed and reviewed at least annually in meetings that include the 
following participants:
    a. The designated representative of the Section 6 School 
Arrangement, who is qualified to supervise the provision of special 
education. Such representative may not be the preschool child's or 
child's special education teacher.
    b. One, or more, of the preschool child's or child's regular 
education teachers, if appropriate.
    c. The preschool child's or child's special education teacher or 
teachers.
    d. One, or both, of the preschool child's or child's parents.
    e. The child, if appropriate.
    f. For a preschool child or child with a disability who has been 
evaluated, a member of the evaluation team or another person 
knowledgeable about the evaluation procedures used with that student and 
familiar with the results of the evaluation.
    g. Other individuals, at the reasonable discretion of the parent(s) 
or the school.
    7. Section 6 School Arrangements shall:
    2a. Ensure that an IEP meeting is held, normally within 10 working 
days, following a determination by the appropriate CSC that the 
preschool child or child is eligible to receive special education and/or 
related services.
    b. Address the needs of a preschool child or child with a current 
IEP who transfers from a school operated by the DoD in accordance with 
32 CFR part \1\ or from a Section 6 School Arrangement to a Section 6 
School Arrangement, by:
---------------------------------------------------------------------------

    \1\ Copies of DoD Directive 1342.6 may be obtained, at cost, from 
the National Technical Information Service, 5285 Port Royal Road, 
Springfield, VA 22161.
---------------------------------------------------------------------------

    (1)Implementing the current IEP; or
    (2) Revising the current IEP with the consent of a parent; or
    (3) Initiating, with the consent of a parent, an evaluation of the 
preschool child or child, while continuing to provide appropriate 
services through a current IEP; or
    (4) Initiating, with the consent of the parent, an evaluation of the 
preschool child or child without the provision of the services in the 
current IEP; or
    (5) Initiating mediation, and if necessary, due process procedures.
    c. Afford the preschool child's or child's parent(s) the opportunity 
to participate in every IEP or CSC meeting about their preschool child 
or child by:
    (1) Providing the parent(s) adequate written notice of the purpose, 
time, and place of the meeting.
    (2) Attempting to schedule the meeting at a mutually agreeable time 
and place.
    8. If neither parent can attend the meeting, other methods to 
promote participation by a parent, such as telephone conservations and 
letters, shall be used.
    9. A meeting may be conducted without a parent in attendance if the 
Section 6 School Arrangement is unable to secure the attendance of the 
parent. In this case, the Section 6 School Arrangement must have written 
records of its attempts to arrange a mutually acceptable time and place.
    10. If the parent(s) attends the IEP meeting, the Section 6 School 
Arrangement shall take necessary action to ensure that at least one of 
the parents understands the proceedings at the meeting, including 
providing an interpreter for a parent who is deaf or whose native 
language is other than English.

[[Page 428]]

    11. The section 6 School Arrangement shall give a parent a copy of 
the preschool child's IEP.
    12. Section 6 School Arrangements shall provide special education 
and related services, in accordance with an IEP, provided that the 
Department of Defense, its constituent elements, and its personnel, are 
not accountable if a preschool child or child does not achieve the 
growth projected in the IEP.
    13. Section 6 School Arrangements shall ensure that an IEP is 
developed and implemented for each preschool child or child with a 
disability whom the CSC places in a non-Section 6 School or other 
facility.

        D. Placement Procedures and Least Restrictive Environment

    1. The placement of a preschool child or child in any special 
education program by the Section 6 School Arrangement shall be made only 
under an IEP and after a determination has been made that such student 
has a disability and needs special education and/or related services.
    2. The Section 6 School Arrangement CSC shall identify the special 
education and related services to be provided under the IEP.
    3. A placement decision may not be implemented without the consent 
of a parent of the preschool child or child, except as otherwise 
provided in accordance with this part.
    4. The placement decision must be designed to educate a preschool 
child or child with a disability in the least restrictive environment so 
that such student is educated to the maximum extent appropriate with 
students who do not have disabilities. Special classes, separate 
schooling, or other removal of preschool children or children with 
disabilities from the regular educational environment shall occur only 
when the nature or severity of the disability is such that the preschool 
child or child with disabilities cannot be educated satisfactorily in 
the regular classes with the use of supplementary aids and services, 
including related services.
    5. Each educational placement for a preschool child or child with a 
disability shall be:
    a. Determined at least annually by the appropriate CSC.
    b. Based on the preschool child or child's IEP.
    c. Located as close as possible to the residence of the parent who 
is sponsoring the preschool child or child for attendance in a Section 6 
School Arrangement.
    d. Designed to assign the preschool child or child to the school 
such student would attend if he or she were not a student with a 
disability, unless the IEP requires some other arrangement.
    e. Predicated on the consideration of all factors affecting the 
preschool child's or child's well-being, including the effects of 
separation from parent(s).
    f. To the maximum extent appropriate, designed so that the preschool 
child or child participates in school activities, including meals and 
recess periods, with students who do not have a disability.

      E. Children With Disabilities Placed in Non-Section 6 School 
                              Arrangements

    1. Before a Section 6 School Arrangement CSC, with the concurrence 
of the Section 6 School Arrangement Superintendent concerned, places a 
preschool child or child with a disability in a non-Section 6 School or 
facility, the Section 6 School CSC shall conduct a meeting in accordance 
with this part to initiate the development of an IEP for such student.
    2. Preschool children and children with disabilities eligible to 
receive instruction in Section 6 School Arrangements who are referred to 
another school or facility by the Section 6 School CSC have all the 
rights of students with disabilities who are attending the Section 6 
School Arrangement.
    a. If a Section 6 School Arrangement CSC places a preschool child or 
child with a disability in a non-Section 6 School Arrangement or 
facility as a means of providing special education and related services, 
the program of that facility, including nonmedical care, room, and 
board, as set forth in the student's IEP, must be at no cost to the 
student or the student's parents.
    b. A Section 6 School Arrangement CSC may place a preschool child or 
child with a disability in a non-Section 6 School Arrangement or 
facility only if required by an IEP. An IEP for a student placed in a 
non-Section 6 School is not valid until signed by the Section 6 School 
Arrangement Superintendent, or designee, who must have participated in 
the IEP meeting. The IEP shall include determinations that:
    (1) The Section 6 School Arrangement does not currently have, and 
cannot reasonably create, an educational program appropriate to meet the 
needs of the student with a disability.
    (2) The non-Section 6 School Arrangement or facility and its 
educational program conform to this part.
    3. A Section 6 School Arrangement is not responsible for the cost of 
a non-Section 6 School Arrangement placement when placement is made 
unilaterally, without the approval of the cognizant CSC and the 
Superintendent, unless it is directed by a hearing officer under 
appendix C of this part or a court of competent jurisdiction.

                        F. Procedural Safeguards

    1. Parents shall be given written notice before the Section 6 School 
Arrangement CSC proposes to initiate or change, or refuses to initiate 
or change, either the identification, evaluation, or educational 
placement of a

[[Page 429]]

preschool child or child receiving, or entitled to receive, special 
education and related services from a Section 6 School Arrangement, or 
the provision of a free appropriate public education by the Section 6 
School Arrangement to the child. The notice shall fully inform a parent 
of the procedural rights conferred by this part and shall be given in 
the parent's native language, unless it clearly is not feasible to do 
so.
    2. The consent of a parent of a preschool child or child with a 
disability or suspected of having a disability shall be obtained before 
any:
    a. Initiation of formal evaluation procedures;
    b. Initial special educational placement; or
    c. Change in educational placement.
    3. If a parent refuses consent to any formal evaluation or initial 
placement in a special education program, the Section 6 School 
Arrangement Superintendent may initiate an impartial due process 
hearing, as provided in appendix C of this part to show why an 
evaluation or placement in a special education program should occur 
without such consent. If the hearing officer sustains the Section 6 
School Arrangement CSC position in the impartial due process hearing, 
the appropriate CSC may evaluate or provide special education and 
related services to the preschool child or child without the consent of 
a parent, subject to the parent's due process rights.
    4. A parent is entitled to an independent evaluation of his or her 
preschool child or child at the Section 6 School Arrangement's expense, 
if the parent disagrees with the findings of an evaluation of the 
student conducted by the school and the parent successfully challenges 
the evaluation in an impartial due process hearing.
    a. If an independent evaluation is provided at the expense of a 
Section 6 School Arrangement, it must meet the following criteria:
    (1) Conform to the requirements of this part.
    (2) Be conducted, when possible, within the area where the preschool 
child or child resides.
    (3) Meet applicable DoD standards governing persons qualified to 
conduct an evaluation.
    b. If the final decision rendered in an impartial due process 
hearing sustains the evaluation of the Section 6 School Arrangement CSC, 
the parent has the right to an independent evaluation, but not at the 
expense of the Department of Defense or any DoD Component.
    5. The parents of a preschool child or child with a disability shall 
be afforded an opportunity to inspect and review all relevant 
educational records concerning the identification, evaluation, and 
educational placement of such student, and the provision of a free 
appropriate public education to him or her.
    6. Upon complaint presented in a written petition, the parent of a 
preschool child or child with a disability or the Section 6 School 
System shall have the opportunity for an impartial due process hearing 
provided by the Department of Defense as prescribed by appendix C of 
this part.
    7. During the pendency of any impartial due process hearing or 
judicial proceeding on the identification, evaluation, or educational 
placement of a preschool child or child with a disability receiving an 
education from a Section 6 School Arrangement or the provision of a free 
appropriate public education to such a student, unless the Section 6 
School Arrangement and a parent of the student agree otherwise, the 
student shall remain in his or her present educational placement, 
subject to the disciplinary procedures prescribed in this part.
    8. If a preschool child or child with a disability, without a 
current IEP, who is entitled to receive educational instruction from a 
Section 6 School Arrangement is applying for initial admission to a 
Section 6 School Arrangement, that student shall enter that Arrangement 
on the same basis as a student without a disability.
    9. The parent of a preschool child or child with a disability or a 
Section 6 School Arrangement employee may file a written communication 
with the Section 6 School Arrangement Superintendent about possible 
general violations of this part or Pub. L. 101-476, as amended. Such 
communications will not be treated as complaints under appendix C of 
this part.

                       G. Disciplinary Procedures

    1. All regular disciplinary rules and procedures applicable to 
students receiving educational instruction in the Section 6 School 
Arrangements shall apply to preschool children and children with 
disabilities who violate school rules and regulations or disrupt regular 
classroom activities, subject to the provisions of this section.
    2. The appropriate CSC shall determine whether the conduct of a 
preschool child or child with a disability is the result of that 
disability before the long-term suspension (10 consecutive or cumulative 
days during the school year) or the expulsion of that student.
    3. If the CSC determines that the conduct of such a preschool child 
or child with a disability results in whole or part from his or her 
disability, that student may not be subject to any regular disciplinary 
rules and procedures; and
    a. The student's parent shall be notified in accordance with this 
part of the right to have an IEP meeting before any change in the 
student's special education placement. (A termination of the student's 
education for

[[Page 430]]

more than 10 days, either cumulative or consecutive, constitutes a 
change of placement.)
    b. The Section 6 School Arrangement CSC or another authorized school 
official shall ensure that an IEP meeting is held to determine the 
appropriate educational placement for the student in consideration of 
his or her conduct before the tenth cumulative day of the student's 
suspension or an expulsion.
    4. A preschool child or child with a disability shall neither be 
suspended for more than 10 days nor expelled, and his or her educational 
placement shall not otherwise be changed for disciplinary reasons, 
unless in accordance with this section, except that:
    a. This section shall be applicable only to preschool children and 
children determined to have a disability under this part.
    b. Nothing contained herein shall prevent the emergency suspension 
of any preschool child or child with a disability who endangers or 
reasonable appears to endanger the health, welfare, or safety of himself 
or herself, or any other student, teacher, or school personnel, provided 
that:
    (1) The appropriate Section 6 School Arrangement CSC shall 
immediately meet to determine whether the preschool child's or child's 
conduct results from his or her disability and what change in special 
education placement is appropriate for that student.
    (2) The child's parent(s) shall be notified immediately of the 
student's suspension and of the time, purpose, and location of the CSC 
meeting and their right to attend the meeting.
    (3) A component is included in the IEP that addresses the behavioral 
needs of the student.
    (4) The suspension of the student is only effective for the duration 
of the emergency.

                Appendix C to Part 80--Hearing Procedures

                               A. Purpose

    This appendix establishes adjudicative requirements whereby the 
parents of infants, toddlers, preschool children, and children who are 
covered by this part and, as the case may be, the cognizant Military 
Department or Section 6 School System are afforded impartial due process 
hearings and administrative appeals on the early intervention services 
or identification, evaluation, and educational placement of, and the 
free appropriate public education provided to, such children by the 
Department of Defense, in accordance with Pub. L. 101-476, as amended, 
20 U.S.C. sec. 1401 et seq.; Pub. L. 81-874, sec. 6, as amended, 20 
U.S.C. sec. 241; Pub. L. 97-35, sec. 505(c), 20 U.S.C. sec. 241 note; 
and Pub. L. 102-119, sec. 23, 20 U.S.C. sec. 241(a).

                            B. Administration

    1. The Directorate for the Defense Office of Hearings and Appeals 
(DOHA) shall have administrative responsibility for the proceedings 
authorized by this appendix.
    2. This appendix shall be administered to ensure that the findings, 
judgments, and determinations made are prompt, fair, and impartial.
    3. Impartial hearing officers, who shall be DOHA Administrative 
Judges, shall be appointed by the Director, DOHA, and shall be attorneys 
who are independent of the Section 6 School System or the Military 
Department concerned in proceedings conducted under this appendix. A 
parent shall have the right to be represented in such proceedings, at no 
cost to the government, by counsel and by persons with special knowledge 
or training with respect to the problems of individuals with 
disabilities. DOHA Department Counsel normally shall appear and 
represent the Section 6 School System in proceedings conducted under 
this appendix, when such proceedings involve a preschool child or child. 
When an infant or toddler is involved, the Military Department 
responsible under this part for delivering early intervention services 
shall either provide its own counsel or request counsel from DOHA.

                              C. Mediation

    1. Mediation can be initiated by either a parent or, as appropriate, 
the Military Department concerned or the Section 6 School System to 
resolve informally a disagreement on the early intervention services for 
an infant or toddler or the identification, evaluation, educational 
placement of, or the free appropriate public education provided to, a 
preschool child or child. The cognizant Military Department, rather than 
the Section 6 School System, shall participate in mediation involving 
early intervention services. Mediation shall consist of, but not be 
limited to, an informal discussion of the differences between the 
parties in an effort to resolve those differences. The parents and the 
appropriate school or Military Department officials may attend mediation 
sessions.
    2. Mediation must be conducted, attempted, or refused in writing by 
a parent of the infant, toddler, preschool child or child whose early 
intervention or special education services (including related services) 
are at issue before a request for, or initiation of, a hearing 
authorized by this appendix. Any request by the Section 6 School System 
or Military Department for a hearing under this appendix shall state how 
this requirement has been satisfied. No stigma may be attached to the 
refusal of a parent to mediate or to an unsuccessful attempt to mediate.

[[Page 431]]

                        D. Practice and Procedure

                               1. Hearing

    a. Should mediation be refused or otherwise fail to resolve the 
issues on the provision of early intervention services or a free, 
appropriate public education to a disabled infant, toddler, preschool 
child or child or the identification, evaluation, or educational 
placement of such an individual, the parent or either the school 
principal, on behalf of the Section 6 School System, or the military 
medical treatment facility commander, on behalf of the Military 
Department having jurisdiction over the infant or toddler, may request 
and shall receive a hearing before a hearing officer to resolve the 
matter. The parents of an infant, toddler, preschool child or child and 
the Section 6 School System or Military Department concerned shall be 
the only parties to a hearing conducted under this appendix.
    b. The party seeking the hearing shall submit a written request, in 
the form of a petition, setting forth the facts, issues, and proposed 
relief, to the Director, DOHA. The petitioner shall deliver a copy of 
the petition to the opposing party (that is, the parent or the school 
principal, on behalf of the Section 6 School System, or the military 
medical treatment facility commander, on behalf of the Military 
Department), either in person or by first-class mail, postage prepaid. 
Delivery is complete upon mailing. When the Section 6 School System or 
Military Department petitions for a hearing, it shall inform the other 
parties of the deadline for filing an answer under paragraph D.1.c. of 
this appendix, and shall provide the other parties with a copy of this 
part.
    c. An opposing party shall submit an answer to the petition to the 
Director, DOHA, with a copy to the petitioner, within 15 calendar days 
of receipt of the petition. The answer shall be as full and complete as 
possible, addressing the issues, facts, and proposed relief. The 
submission of the answer is complete upon mailing.
    d. Within 10 calendar days after receiving the petition, the 
Director, DOHA, shall assign a hearing officer, who then shall have 
jurisdiction over the resulting proceedings. The Director, DOHA, shall 
forward all pleadings to the hearing officer.
    e. The questions for adjudication shall be based on the petition and 
the answer, provided that a party may amend a pleading if the amendment 
is filed with the hearing officer and is received by the other parties 
at least 5 calendar days before the hearing.
    f. The Director, DOHA, shall arrange for the time and place of the 
hearing, and shall provide administrative support. Such arrangements 
shall be reasonably convenient to the parties.
    g. The purpose of a hearing is to establish the relevant facts 
necessary for the hearing officer to reach a fair and impartial 
determination of the case. Oral and documentary evidence that is 
relevant and material may be received. The technical rules of evidence 
shall be relaxed to permit the development of a full evidentiary record, 
with the Federal Rules of Evidence (28 U.S.C.) serving as a guide.
    h. The hearing officer shall be the presiding officer, with judicial 
powers to manage the proceeding and conduct the hearing. Those powers 
shall include the authority to order an independent evaluation of the 
child at the expense of the Section 6 School System or Military 
Department concerned and to call and question witnesses.
    i. Those normally authorized to attend a hearing shall be the 
parents of the individual with disabilities, the counsel and personal 
representative of the parents, the counsel and professional employees of 
the Section 6 School System or Military Department concerned, the 
hearing officer, and a person qualified to transcribe or record the 
proceedings. The hearing officer may permit other persons to attend the 
hearing, consistent with the privacy interests of the parents and the 
individual with disabilities, provided the parents have the right to an 
open hearing upon waiving in writing their privacy rights and those of 
the individual with disabilities.
    j. A verbatim transcription of the hearing shall be made in written 
or electronic form and shall become a permanent part of the record. A 
copy of the written transcript or electronic record of the hearing shall 
be made available to a parent upon request and without cost. The hearing 
officer may allow corrections to the written transcript or electronic 
recording for the purpose of conforming it to actual testimony after 
adequate notice of such changes is given to all parties.
    k. The hearing officer's decision of the case shall be based on the 
record, which shall include the petition, the answer, the written 
transcript or the electronic recording of the hearing, exhibits admitted 
into evidence, pleadings or correspondence properly filed and served on 
all parties, and such other matters as the hearing officer may include 
in the record, provided that such matter is made available to all 
parties before the record is closed under paragraph D.1.m. of this 
appendix.
    l. The hearing officer shall make a full and complete record of a 
case presented for adjudication.
    m. The hearing officer shall decide when the record in a case is 
closed.
    n. The hearing officer shall issue findings of fact and render a 
decision in a case not later than 50 calendar days after being assigned 
to the case, unless a discovery request under section D.2. of this 
appendix is pending.

[[Page 432]]

                              2. Discovery

    a. Full and complete discovery shall be available to parties to the 
proceeding, with the Federal Rules of Civil Procedure (28 U.S.C.) 
serving as a guide.
    b. If voluntary discovery cannot be accomplished, a party seeking 
discovery may file a motion to accomplish discovery, provided such 
motion is founded on the relevance and materiality of the proposed 
discovery to the issues. An order granting discovery shall be 
enforceable as is an order compelling testimony or the production of 
evidence.
    c. A copy of the written or electronic transcription of a deposition 
taken by the Section 6 School System or Military Department concerned 
shall be made available free of charge to a parent.

                  3. Witnesses; Production of Evidence

    a. All witnesses testifying at the hearing shall be advised that it 
is a criminal offense knowingly and willfully to make a false statement 
or representation to a Department or Agency of the United States 
Government as to any matter within the jurisdiction of the Department or 
Agency. All witnesses shall be subject to cross-examination by the 
parties.
    b. A party calling a witness shall bear the witness' travel and 
incidental expenses associated with testifying at the hearing. The 
Section 6 School System or Military Department concerned shall pay such 
expenses when a witness is called by the hearing officer.
    c. The hearing officer may issue an order compelling the attendance 
of witnesses or the production of evidence upon the hearing officer's 
own motion or, if good cause be shown, upon motion of a party.
    d. When the hearing officer determines that a person has failed to 
obey an order to testify or to produce evidence, and such failure is in 
knowing and willful disregard of the order, the hearing officer shall so 
certify.
    e. The party or the hearing officer seeking to compel testimony or 
the production of evidence may, upon the certification provided for in 
paragraph D.3.d. of the section, file an appropriate action in a court 
of competent jurisdiction to compel compliance with the hearing 
officer's order.

           4. Hearing Officer's Findings of Fact and Decision

    a. The hearing officer shall make written findings of fact and shall 
issue a decision setting forth the questions presented, the resolution 
of those questions, and the rationale for the resolution. The hearing 
officer shall file the findings of fact and decision with the Director, 
DOHA, with a copy to the parties.
    b. The Director, DOHA, shall forward to the Director, Section 6 
Schools or the Military Department concerned and the Domestic Advisory 
Panel copies, with all personally identifiable information deleted, of 
the hearing officer's findings of fact and decision or, in cases that 
are administratively appealed, of the final decision of the DOHA Appeal 
Board.
    c. The hearing officer shall have the authority to impose financial 
responsibility for early intervention services, educational placements, 
evaluations, and related services under his or her findings of fact and 
decision.
    d. The findings of fact and decision of the hearing officer shall 
become final unless a notice of appeal is filed under section F.1. of 
this appendix. The Section 6 School System or Military Department 
concerned shall implement a decision as soon as practicable after it 
becomes final.

                    E. Determination Without Hearing

    1. At the request of a parent of the infant, toddler, preschool 
child or child when early intervention or special educational (including 
related) services are at issue, the requirement for a hearing may be 
waived, and the case may be submitted to the hearing officer on written 
documents filed by the parties. The hearing officer shall make findings 
of fact and issue a decision within the period fixed by paragraph D.1.n. 
of this appendix.
    2. The Section 6 School System or Military Department concerned may 
oppose a request to waive the hearing. In that event, the hearing 
officer shall rule on the request.
    3. Documents submitted to the hearing officer in a case determined 
without a hearing shall comply with paragraph D.1.g. of this appendix. A 
party submitting such documents shall provide copies to all other 
parties.

                                F. Appeal

    1. A party may appeal the hearing officer's findings of fact and 
decision by filing a written notice of appeal with the Director, DOHA, 
within 5 calendar days of receipt of the findings of fact and decision. 
The notice of appeal must contain the appellant's certification that a 
copy of the notice of appeal has been provided to all other parties. 
Filing is complete upon mailing.
    2. Within 10 calendar days of the filing the notice of appeal, the 
appellant shall submit a written statement of issues and arguments to 
the Director, DOHA, with a copy to the other parties. The other parties 
shall submit a reply or replies to the Director, DOHA, within 15 
calendar days of receiving the statement, and shall deliver a copy of 
each reply to the appellant. Submission is complete upon mailing.
    3. The Director, DOHA, shall refer the matter on appeal to the DOHA 
Appeal Board. It shall determine the matter, including the making of 
interlocutory rulings, within 60 calendar days of receiving timely 
submitted

[[Page 433]]

replies under section F.2. of this appendix. The DOHA Appeal Board may 
require oral argument at a time and place reasonable convenient to the 
parties.
    4. The determination of the DOHA Appeal Board shall be a final 
administrative decision and shall be in written form. It shall address 
the issues presented and set forth a rationale for the decision reached. 
A determination denying the appeal of a parent in whole or in part shall 
state that the parent has the right under Pub. L. 101-476, as amended, 
to bring a civil action on the matters in dispute in a district court of 
the United States without regard to the amount in controversy.
    5. No provision of this part or other DoD guidance may be construed 
as conferring a further right of administrative review. A party must 
exhaust all administrative remedies afforded by this appendix before 
seeking judicial review of a determination made under this appendix.

             G. Publication and Indexing of Final Decisions

    The Director, DOHA, shall ensure that final decisions in cases 
arising under this Appendix are published and indexed to protect the 
privacy rights of the parents who are parties in those cases and the 
children of such parents, in accordance with 32 CFR part 310.



PART 81--PATERNITY CLAIMS AND ADOPTION PROCEEDINGS INVOLVING MEMBERS AND FORMER MEMBERS OF THE ARMED FORCES--Table of Contents




Sec.
81.1  Reissuance and purpose.
81.2  Applicability.
81.3  Policy.

    Authority: Sec. 301, 80 Stat. 379; (5 U.S.C. 301).

    Source: 43 FR 15149, Apr. 11, 1978, unless otherwise noted.



Sec. 81.1  Reissuance and purpose.

    This part reissued DoD Directive 1344.3, ``Paternity Claims and 
Adoption Proceedings Involving Members and Former Members of the Armed 
Forces,'' to standardize procedures for the handling of:
    (a) Paternity claims against members and former members of the Armed 
Forces, and
    (b) Requests from civilian courts concerning the availability of 
members and former members of the Armed Forces to appear at an adoption 
hearing where it is alleged that such member is the father of an 
illegitimate child.



Sec. 81.2  Applicability.

    The provisions of this part apply to the Military Departments.



Sec. 81.3  Policy.

    (a) Members on active duty. (1) Allegations of paternity against 
members of the Armed Forces who are on active duty will be transmitted 
to the individual concerned by the appropriate military authorities.
    (2) If there exists a judicial order or decree of paternity or child 
support duly rendered by a United States or foreign court of competent 
jurisdiction against such a member, the commanding officer in the 
appropriate Military Departments will advise the member of his moral and 
legal obligations as well as his legal rights in the matter. See 42 
U.S.C. 659. The member will be encouraged to render the necessary 
financial support to the child and take any other action considered 
proper under the circumstances.
    (3) Communications from a judge of a civilian court, including a 
court summons or a judical order, concerning the availability of 
personnel to appear at an adoption hearing, where it is alleged that an 
active duty member is the father of an illegitimate child, shall receive 
a reply that:
    (i) Due to military requirements, the member cannot be granted leave 
to attend any court hearing until (date), or
    (ii) A request by the member for leave to attend an adoption court 
hearing on (date), if made, would be approved, or
    (iii) The member has stated in a sworn written statement (forward a 
copy with response) that he is not the natural parent of the child, or
    (iv) Due to the member's unavaila-bility caused by a specific 
reason, a completely responsive answer cannnot be made.
    (4) The member should be informed of the inquiry and the response 
and urged to obtain legal assistance for guidance (including an 
explanation of sections of the Soldiers' and Sailors' Civil Relief Act, 
50 U.S.C. appendix, section 501 et seq., if appropriate).

[[Page 434]]

    (b) Members not on active duty. (1) Allegations of paternity against 
members of the Armed Forces who are not on active duty shall be 
forwarded to the individual concerned in such manner as to ensure that 
the allegations are delivered to the addressee only. Military channels 
will be used when practicable.
    (2) Communications from a judge of a civilian court, including a 
court summons or judicial order, concerning the availability of 
personnel to appear at an adoption hearing, where it is alleged that the 
member not on active duty is the father of an illegitimate child shall 
receive a reply that such person is not on active duty. A copy of the 
communication and the reply will be forwarded to the named individual.
    (3) When requested by a court, the last known address of inactive 
members may be furnished under the same conditions as set forth for 
former members under paragraph (c)(2) (i) and (ii) of this section.
    (c) Former members. (1) In all cases of allegations of paternity 
against former members of the Armed Forces or communication from a judge 
of a civilian court, including a judicial summons or court order, 
concerning the adoption of an illegitimate child of former members of 
the Armed Forces who have been separated from the Military Services, 
i.e., those members now holding no military status whatsoever, the 
claimant or requester will be (i) informed of the date of discharge, and 
(ii) advised that the individual concerned is no longer a member of the 
Armed Forces in any capacity, and that the Military Departments assume 
no responsibility for the whereabouts of individuals no longer under 
their jurisdiction. The correspondence and all accompanying 
documentation shall be returned to the claimant or requester.
    (2) In addition, the last known address of the former member will be 
furnished to the requester:
    (i) If the request is supported by a certified copy of either:
    (A) A judicial order or decree of paternity or support duly rendered 
against a former member by a United States or foreign court of competent 
jurisdiction; or
    (B) A document which establishes that the former member has made an 
official admission or statement acknowledging paternity or 
responsibility for support of a child before a court of competent 
jurisdiction, administrative or executive agency, or official authorized 
to receive it; or
    (C) A court summons, judicial order, or similar document of a court 
within the United States in a case concerning the adoption of an 
illegitimate child; wherein the former serviceman is alleged to be the 
father.
    (ii) If the claimant, with the corroboration of a physician's 
affidavit, alleges and explains an unusual medical situation which makes 
it essential to obtain information from the alleged father to protect 
the physical health of either the prospective mother or the unborn 
child.



PART 83--STANDARDS OF CONDUCT--Table of Contents




Sec.
83.1  Purpose.
83.2  Applicability and scope.
83.3  Definitions.
83.4  Policy.
83.5  Responsibilities.
83.6  Procedures.

    Authority: 5 U.S.C. 301, 7301, 7351, 7353; 5 U.S.C. App. (Ethics in 
Government Act of 1978); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 
215 as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306; 5 
CFR part 2635.

    Source: 59 FR 13212, Mar. 21, 1994, unless otherwise noted.



Sec. 83.1  Purposes.

    This part:
    (a) Replaces DoD Directive 5120.47 \1\ and implements E.O. 12674, 54 
FR 15159, 3 CFR, 1989 Comp., p. 215; 5 U.S.C. App. (Ethics in Government 
Act of 1978); 5 U.S.C. 4111; 10 U.S.C. 801-940, 2397, 2397a, and 2397b; 
18 U.S.C. 203, 205, 207, 208, 209 and 218; 31 U.S.C. 1353; 41 U.S.C. 
423; 48 CFR 3.104-6; 5 CFR parts 733, 2634, 2635, 2636, 2637, 2638, and 
2641. The ``18 U.S.C. 208(b) Waiver'' section of 32 CFR part 40 has been 
retained at 32

[[Page 435]]

CFR 40.1 and cross-referenced in Appendix B of 32 CFR part 84.
---------------------------------------------------------------------------

    \1\ Copies of the replaced directive are available from the 
Directives Division, room 2A286, Washington Headquarters Services, 1155 
Defense Pentagon, Washington, DC 20301-1155.
---------------------------------------------------------------------------

    (b) Cancels DD Form 1357, ``Statement of Employment--Regular Retired 
Officers,'' March 1987, and DD Form 1555, ``Confidential Statement of 
Affiliations and Financial Interests,'' March 1987. The Office of 
Government Ethics' (OGE) SF 450, ``Confidential Financial Disclosure 
Report,'' July 1992, replaces DD Form 1555.
    (c) Authorizes the publication of DoD 5500.7-R \2\ in accordance 
with DoD 5025.1-M \3\ which prescribes standards of conduct required of 
all DoD employees; establishes criteria and procedures for filing DD 
Form 1787, ``Report of DoD and Defense Related Employment,'' SF 450, and 
SF 278, ``Public Financial Disclosure Report,'' January 1991, required 
of certain present and former DoD employees; provides ethics training 
guidance; and sets general responsibilities and enforcement procedures.
---------------------------------------------------------------------------

    \2\ Copies of the publication are available, at cost, from the 
National Technical Information Service, U.S. Department of Commerce, 
5285 Port Royal Road, Springfield, VA 22161.
    \3\ See footnote 2 to Sec. 83.1(c).
---------------------------------------------------------------------------

[59 FR 13212, Mar. 21, 1994, as amended at 60 FR 20029, Apr. 24, 1995]



Sec. 83.2  Applicability and scope.

    (a) This part and 32 CFR part 84 apply to the Office of the 
Secretary of Defense; the Military Departments; the Chairman of the 
Joint Chiefs of Staff and the Joint Staff; the Unified and Specified 
Commands; the Office of the Inspector General of the Department of 
Defense; the Uniformed Services University of the Health Sciences; the 
Defense Agencies; the DoD Field Activities; the Combined Commands and 
Agencies; and the Special Activities, including non-appropriated fund 
instrumentalities (hereafter referred to collectively as the ``DoD 
Components''). The sections of 32 CFR part 84 entitled ``Financial and 
Employment Disclosure,'' ``Post-Government Service Employment,'' and 
``Seeking Other Employment'' also apply, as specified, to certain former 
employees of DoD Components in accordance with specified statutes. The 
section of 32 CFR part 84 entitled ``Financial and Employment 
Disclosure'' has provisions that apply to individuals who are not DoD 
employees such as detailees and nominees to DoD positions.
    (1) Although OGE regulations, cross-referenced in 32 CFR part 84, do 
not apply to enlisted members of the Department of Defense, the 
provisions of 5 CFR parts 2634, 2635, 2638, and 2641 are determined to 
be appropriate for enlisted members and are hereby made applicable to 
enlisted members as if the terms ``employee'' and ``special Government 
employee,'' as used in those OGE regulations, include enlisted members 
to the same extent that military officers are included within the 
meaning of those terms.
    (2) Certain criminal statutes referenced in 32 CFR part 84 and 18 
U.S.C. 203, 205, 207, 208, 209, and 218 do not apply to enlisted 
members; however, provisions similar to those of 18 U.S.C. 208 and 209 
apply to enlisted members. See Sec. 84.3(a)(1)(i) of 32 CFR part 84.
    (b) Penalties for violation of the standards and rules of conduct 
prescribed in 32 CFR part 84 include the full range of statutory and 
regulatory sanctions for DoD employees.
    (1) The prohibitions and requirements printed in 32 CFR part 84 that 
are marked as general orders apply to all military members without 
further implementation. Violations may result in prosecution under the 
Uniform Code of Military Justice (UCMJ) (10 U.S.C. 801-940), as well as 
adverse administrative action and other adverse action authorized by the 
United States Code or Federal regulations.
    (2) DoD employees on assignment to another Executive Agency for more 
than 30 days are subject to 5 CFR part 2635 and the regulations of that 
agency that supplement 5 CFR part 2635 and have been approved by OGE.
    (3) In addition to details within the Federal Government, details of 
civilian DoD employees (except temporary or non-career employees who may 
not be so detailed) may be made to State and local governments, 
institutions of higher education, and certain other agencies. Civilian 
DoD employees detailed outside the Federal Government remain subject to 
32 CFR part 84.
    (4) In matters of ethics and standards of conduct, any 
inconsistencies among applicable regulations shall be resolved

[[Page 436]]

by the DoD Component Designated Agency Ethics Official (DAEO).



Sec. 83.3  Definitions.

    Terms used in this part are defined in 32 CFR part 84.



Sec. 83.4  Policy.

    (a) The Department of Defense shall have a single source of 
standards of ethical conduct and ethics guidance, including direction in 
the areas of financial and employment disclosure systems, post-
employment rules, enforcement, and training embodied in 32 CFR part 84.
    (b) A violation of this part and 32 CFR part 84 does not create any 
right or benefit, substantive or procedural, enforceable at law by any 
person against the United States, its agencies, its officers or 
employees, or any other person.



Sec. 83.5  Responsibilities.

    (a) The General Counsel of the Department of Defense shall:
    (1) Ensure that appropriate updates, modifications, additions and 
deletions are made to 32 CFR part 84.
    (2) Have approval authority for DoD Component documents 
supplementing or implementing 32 CFR part 84.
    (b) The Heads of the DoD Components shall ensure that:
    (1) 32 CFR part 84 is followed within their DoD Components.
    (2) No DoD Component documents supplementing or implementing 32 CFR 
part 84 are issued without the approval of the General Counsel of the 
Department of Defense.
    (3) The DoD Component DAEO or designee distributes copies of 32 CFR 
part 84 throughout the DoD Component and makes such copies available for 
review by DoD employees in the offices of each local Ethics Counselor.
    (4) The DoD Component DAEO or designee distributes updates, 
modifications, additions, and deletions for insertion in copies of 32 
CFR part 84 throughout the DoD Component.
    (5) The DoD Component DAEO resolves inconsistencies among the 
regulations of applicable Executive Agencies, as appropriate, for DoD 
employees of the DoD Component.
    (6) The DoD Component representative to the Ethics Oversight 
Committee assists in the development and upkeep of 32 CFR part 84, as 
needed, through the operation of that committee as a working group.



Sec. 83.6  Procedures.

    32 CFR part 84 shall be a product of a coordinated effort by the 
General Counsel of the Department of Defense and the DoD Component DAEOs 
and designees through the Ethics Oversight Committee.



PART 84--JOINT ETHICS REGULATION--Table of Contents




                     Subpart A--General Information

Sec.
84.1  Purpose.
84.2  Definitions.
84.3  General policy.
84.4  General responsibilities.

                 Subpart B--Standards of Ethical Conduct

84.5  Office of Government Ethics regulation.
84.6  DoD supplement to 5 CFR part 2635.
84.7  DoD guidance.

             Subpart C--Activities with Non-Federal Entities

84.8  Office of Government Ethics regulation.
84.9  Official participation in non-Federal entities.
84.10  Personal participation in non-Federal entities.

                       Subpart D--Travel Benefits

84.11  Acceptance of official travel benefits in kind or payment for 
          official travel expenses.
84.12  DoD guidance.
84.13  Procedures and responsibilities.

                     Subpart E--Conflict of Interest

84.14  Office of Government Ethics regulation.
84.15  Guidance on 18 U.S.C. 208.
84.16  Other conflict of interest laws.

                     Subpart F--Political Activities

84.17  Office of Personnel Management regulation.
84.18  Political activities of civilian DoD employees.

[[Page 437]]

84.19  Political activities of military members.

             Subpart G--Financial and Employment Disclosure

84.20  Office of Government Ethics regulation.
84.21  Public financial disclosure report (SF 278).
84.22  Confidential financial disclosure report (SF 450).
84.23  Report of DoD and defense related employment (DD form 1787).

                   Subpart H--Seeking Other Employment

84.24  General rules.
84.25  Conflict of interest (18 U.S.C. 208).
84.26  Procurement integrity (41 U.S.C. 423(b)).
84.27  Reporting employment contacts (10 U.S.C. 2397a).
84.28  DoD guidance.

              Subpart I--Post-Government Service Employment

84.29  Office of Government Ethics regulation.
84.30  Guidance on 18 U.S.C. 207.
84.31  Post-employment counseling and advice.
84.32  Restrictions resulting from procurement activities.
84.33  Restrictions on retired military members.
84.34  Restrictions on former senior appointees.
84.35  Restrictions on dealing with current or former DoD employees.
84.36  Report of DoD and defense related employment (DD form 1787).

                         Subpart J--Enforcement

84.37  Enforcement of the provisions of the Joint Ethics Regulation.
84.38  Reporting procedures.
84.39  Administrative enforcement procedures.

                           Subpart K--Training

84.40  Office of Government Ethics regulation.
84.41  DoD guidance.
84.42  Procedures.
84.43  Responsibilities.

                       Subpart L--Ethical Conduct

84.44  Executive orders.
84.45  Code of ethics for Government service.
84.46  DoD human goals.
84.47  Ethical values.
84.48  Ethical decisionmaking.

Appendix A to Part 84--Digest of Laws
Appendix B to Part 84--Excerpts From DoD Publications
Appendix C to Part 84--DoD Human Goals

    Authority: 5 U.S.C. 301, 7301, 7351, 7353; 5 U.S.C. App. (Ethics in 
Government Act of 1978); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 
215 as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306; 5 
CFR part 2635.

    Source: 59 FR 13214, Mar. 21, 1994, unless otherwise noted.



                     Subpart A--General Information



Sec. 84.1  Purpose.

    (a) Single source of guidance. This part provides a single source of 
standards of ethical conduct and ethics guidance, including direction in 
the areas of financial and employment disclosure systems, post-
employment rules, enforcement, and training.
    (b) Disclaimer. A violation of this part does not create any right 
or benefit, substantive or procedural, enforceable at law by any person 
against the U.S., its agencies, its officers or employees, or any other 
person.



Sec. 84.2  Definitions.

    (a) Administrative officer. The individual responsible for the 
administrative control of personnel within a unit or office, including 
assistance with training, travel, or personnel actions for individuals 
of the unit or office.
    (b) Agency. A DoD component as follows: Department of the Army; 
Department of the Navy; Department of the Air Force; Defense Commissary 
Agency; Defense Contract Audit Agency; Defense Finance and Accounting 
Service; Defense Intelligence Agency; Defense Investigative Service; 
Defense Logistics Agency; Defense Mapping Agency; Defense Nuclear 
Agency; Defense Information Systems Agency; National Security Agency; 
Office of the Inspector General of the Department of Defense (IG, DoD); 
and the Uniformed Services University of the Health Sciences. Employees 
of DoD components not designated as separate agencies, including 
employees of the Office of the Secretary of Defense (OSD), shall be 
treated as employees of DoD which shall be treated as a separate agency.

[[Page 438]]

    (c) Agency designee. The first supervisor who is a commissioned 
military officer or a civilian above GS/GM-11 in the chain of command or 
supervision of the DoD employee concerned. Except in remote locations, 
the agency designee may act only after consultation with his local 
Ethics Counselor. For any military officer in grade 0-7 or above who is 
in command and any civilian Presidential appointee confirmed by the 
Senate, the agency designee is his Ethics Counselor.
    (d) Alternate Designated Agency Ethics Official (Alternate DAEO). An 
employee of a DoD agency who has been appointed by the DoD component 
Head to serve in the absence of the DoD component Designated Agency 
Ethics Official (DAEO).
    (e) Competing defense contractor. See Federal Acquisition 
Regulation,\1\ 48 CFR 3.104-4(b) or 41 U.S.C. 423(p)(2).
---------------------------------------------------------------------------

    \1\ For purchase of this Department of Defense document contact 
Superintendent of Documents, Congressional Sales Office, U.S. Government 
Printing Office, Washington, DC 20402.
---------------------------------------------------------------------------

    (f) Conduct of a procurement. See 48 CFR 3.104-4(c) or 41 U.S.C. 
423(p)(1).
    (g) DAEO or designee. This phrase refers to the Designated Agency 
Ethics Official, or to the Alternate Designated Agency Ethics Official, 
Deputy Designated Agency Ethics Official, or Ethics Counselor who has 
been delegated specific written authority by the DoD component DAEO to 
perform specific functions on behalf of the DoD component DAEO.
    (h) Defense contractor. For purposes of 10 U.S.C. 2397, 2397a, and 
2397b, any individual, firm, corporation, partnership, association, or 
other legal non-Federal entity that enters into a contract directly with 
DoD or a DoD component to furnish services, supplies, or both, including 
construction. Subcontractors are excluded unless they are separate legal 
non-Federal entities that contract directly with DoD or a DoD component 
in their own names. Foreign governments or representatives of foreign 
governments that are engaged in selling to DoD or a DoD component are 
defense contractors when acting in that context.
    (i) Deputy Designated Agency Ethics Official (Deputy DAEO). An 
employee of a DoD agency who has been appointed, in writing, by the DoD 
component DAEO and who has been delegated written authority by that DoD 
component DAEO to act on his behalf.
    (j) Designated Agency Ethics Official (DAEO). A DoD employee 
appointed, in writing, by the Head of the DoD agency to administer the 
provisions of the Ethics in Government Act of 1978, Public Law 95-521 (5 
U.S.C. App.), and this part.
    (k) DoD component. OSD; the Military Departments; the Chairman of 
the Joint Chiefs of Staff and the Joint Staff; the Unified and Specified 
Commands; IG, DoD; the Uniformed Services University of the Health 
Sciences; the Defense Agencies; the DoD Field Activities; the Combined 
Commands and Agencies; and the Special Activities, including non-
appropriated fund instrumentalities. See paragraph (b) of this section 
for those DoD components that are agencies.
    (l) DoD employee. (1) Any DoD civilian officer or employee 
(including special Government employees) of any DoD component (including 
any non-appropriated fund activity).
    (2) Any active duty regular or reserve military officer, including 
warrant officers.
    (3) Any active duty enlisted member of the Army, Navy, Air Force, or 
Marine Corps.
    (4) Any reserve or National Guard member on active duty under orders 
issued pursuant to title 10, United States Code.
    (5) Any reserve or National Guard member performing official duties, 
including while on inactive duty for training or while earning 
retirement points, pursuant to title 10, United States Code, or while 
engaged in any activity related to the performance of a Federal duty or 
function.
    (6) Any faculty member in a civil service position or hired pursuant 
to title 10, United States Code, and any student (including a cadet or 
midshipman) of an academy, college, university, or school of DoD.

[[Page 439]]

    (7) Consistent with labor agreements and international treaties and 
agreements, and host country laws, any foreign national working for a 
DoD component except those hired pursuant to a defense contract.
    (m) DoD supplement. Section 84.6 contains the cross-reference to the 
DoD Supplement of 5 CFR part 2635.
    (n) Employment. See 5 CFR 2635.603(a).
    (o) Ethics Counselor. The DoD component DAEO, Alternate DAEO, Deputy 
DAEO, or a DoD employee appointed in writing by the DoD component DAEO 
or designee to generally assist in implementing and administering the 
DoD component command's or organization's ethics program and to provide 
ethics advice to DoD employees of the DoD component command or 
organization in accordance with this part. Except for a DoD component 
DAEO, Alternate DAEO, or Deputy DAEO, a DoD employee appointed as an 
Ethics Counselor shall only serve as a ``DAEO or designee'' when he has 
been delegated specific written authority by the DoD component DAEO to 
perform specific functions on behalf of the DoD component DAEO. Except 
for a DoD component DAEO, Alternate DAEO, or Deputy DAEO, a DoD employee 
appointed as an Ethics Counselor shall be an attorney. Legal assistance 
officers (or equivalent) who also serve as Ethics Counselors must 
clearly separate these roles. Communications received in an Ethics 
Counselor capacity are not protected by the attorney-client privilege 
while communications received in a legal assistance capacity may be. 
Attorneys who serve as Ethics Counselors must advise individuals being 
counseled as to the status of that privilege prior to any 
communications. The term ``Ethics Counselor'' includes ``agency ethics 
official'' as used by the Office of Government Ethics (OGE). See 5 CFR 
2635.102.(c).
    (p) Ethics Oversight Committee (EOC). A working group composed of 
the DoD component DAEO, or their representatives, and representatives of 
the Chairman of the Joint Chiefs of Staff, and the Judge Advocates 
General of the Military Departments.
    (q) Former DoD employee. Any individual defined in Sec. 84.2(l), 
after termination of active duty or termination of DoD service, 
including reserve military officers who served on active duty for more 
than 130 days and who are no longer on active duty, or who are in an 
inactive or retired status.
    (r) Gratuity. Gifts as defined in 5 CFR 2635.203(b).
    (s) He, his, him, himself. These pronouns include she, hers, her and 
herself.
    (t) Head of DoD component command or organization. A commander, 
commanding officer, or other military or civilian DoD employee who 
exercises command authority within a DoD component.
    (u) Major defense contractor. Any non-Federal entity which, during 
the preceding fiscal year, received defense contracts in a total amount 
equal to or greater than $10 million.
    (v) Major defense system. For purposes of 10 U.S.C. 2397b, a 
combination of elements that will function together to produce the 
capability required to fulfill a mission need. Elements may include 
hardware, equipment, software, or any combination thereof, but excludes 
construction or other improvements to real property. A list is published 
in the Federal Register. See 10 U.S.C. 2302. A system shall be 
considered a major defense system if:
    (1) DoD is responsible for the system and the total expenditures, 
for research, development, test, and evaluation for the system, are 
estimated to exceed $75 million (based on fiscal year 1980 constant 
dollars) or the eventual total expenditure for procurement exceeds $300 
million (based on fiscal year 1980 constant dollars); or
    (2) The system is designated a ``major system'' by the Head of the 
DoD agency responsible for the system.
    (w) Majority of working days. More than 50% of days actually worked, 
excluding holidays, weekends, sick days, and leave days of the two-year 
period in question.
    (x) Negotiation. For purposes of 10 U.S.C. 2397b only, the exchange 
of views between Federal Government and defense contractor 
representatives regarding respective entitlements, liabilities and 
responsibilities on a particular defense contract, modification, or

[[Page 440]]

claim over $10 million, including deliberations regarding contract 
specifications, terms of delivery, allowability of costs, and pricing of 
change orders. Other statutes using this term may define it differently.
    (y) Non-Federal entity. A non-Federal entity is generally a self-
sustaining, non-Federal person or organization, established, operated 
and controlled by any individual(s) acting outside the scope of any 
official capacity as officers, employees or agents of the Federal 
Government. A non-Federal entity may operate on DoD installations if 
approved by the installation commander or higher authority under 
applicable regulations. See 32 CFR part 212.
    (z) Non-public information. Information generally not available to 
the public, obtained in the course of one's official DoD duties or 
position which would normally not be releasable under the Freedom of 
Information Act, 5 U.S.C. 552. The term ``non-public information'' 
includes ``inside information,'' ``proprietary information,'' and 
``source selection information.'' See 5 CFR 2635.703, 32 CFR part 285, 
and 48 CFR 3.104-4(j) and (k) and 3.104-5.
    (aa) Office of Government Ethics. The Federal Government agency 
responsible for overall direction and leadership concerning Executive 
Branch policies related to ethics in the Federal Government. See 5 CFR 
part 2638.
    (bb) Personal and substantial. See 5 CFR 2635.402(b)(4).
    (cc) Personal commercial solicitation. Any effort to contact an 
individual to conduct or transact matters involving unofficial business, 
finance, or commerce. This does not include off-duty employment of DoD 
employees employed in retail establishments. See 32 CFR part 43.
    (dd) Primary Government representative. For purposes of 10 U.S.C. 
2397b, acting as a ``representative'' requires personal and substantial 
participation in the matter by personal presence, telephone 
conversation, or similar involvement with representatives of a defense 
contractor. At any time, more than one individual may act as a primary 
representative for a single matter.
    (ee) Procurement official. See 48 CFR 3.104-4(h).
    (ff) Procurement function. For purposes of 10 U.S.C. 2397b, any 
function relating to:
    (1) The negotiation, award, administration, or approval of a 
contract;
    (2) The selection of a defense contractor;
    (3) The approval of a change in a contract;
    (4) The performance of quality assurance, operational and 
developmental testing, the approval of payment, or auditing under a 
contract; or
    (5) The management of a procurement program.
    (gg) Prohibited source. See 5 CFR 2635.203(d).
    (hh) Qualified individual. See 5 CFR 2638.702(a)(2).
    (ii) Reserve military officer. An individual who currently holds an 
appointment in the reserve of a Military Department, or is a military 
officer of the National Guard with Federal Government recognition.
    (jj) Retired military officer. Any military officer entitled to 
receive military retired pay, even though such pay may be waived or 
pending.
    (kk) Senior DoD official. For purposes of 18 U.S.C. 207, a DoD 
employee is defined as stated in 10 U.S.C. 207(c)(2).
    (ll) Special Government employee. An individual who is retained, 
designated, appointed, or employed to perform, with or without 
compensation, for a period not to exceed 130 days during any period of 
365 consecutive days, temporary duties either on a full-time or 
intermittent basis. The term also includes a reserve military officer 
who is serving on active duty involuntarily or for training for any 
length of time, and one who is serving voluntarily on active duty for 
training for 130 days or less. It does not include enlisted members; 
however, for the purposes of this part, enlisted members shall be 
considered special Government employees to the same extent that military 
officers are included in the meaning of the term.
    (mm) Travel benefits. Travel related gifts, including in kind 
subsistence and accommodations and payments or reimbursements of 
expenses, from non-Federal sources.

[[Page 441]]



Sec. 84.3  General policy.

    DoD policy. It is DoD policy that:
    (a) A single, uniform source of standards of ethical conduct and 
ethics guidance shall be maintained within DoD, and each DoD agency 
shall implement and administer a comprehensive ethics program to ensure 
compliance with such standards and guidance;
    (b) Although OGE regulations, cross-referenced in this part, do not 
apply to enlisted members of DoD, the provisions of 5 CFR parts 2634, 
2635, 2638, 2639, 2640, and 2641, are determined to be appropriate for 
enlisted members and are hereby made applicable to enlisted members as 
if the terms ``employee,'' and ``special Government employee,'' as used 
in those OGE regulations, include enlisted members to the same extent 
that military officers are included within the meaning of those terms. 
The following exception applies to certain criminal statutes, 18 U.S.C. 
203, 205, 207, 208, 209 and 218, and related provisions of OGE 
regulations, do not apply to enlisted members. Provisions similar to 
those of 18 U.S.C. 208 and 209 apply to enlisted members as follows:
    (1) Except as approved by the DoD component DAEO or designee, an 
enlisted member, including an enlisted special Government employee, 
shall not participate personally and substantially as part of his 
official DoD duties, in any particular matter in which he, his spouse, 
minor child, partner, entity in which he is serving as officer, 
director, trustee, partner, or employee, or any entity with which he is 
negotiating or has an arrangement concerning prospective employment, has 
a financial interest;
    (2) An enlisted member, except an enlisted special Government 
employee, shall not receive any salary or supplementation of his Federal 
Government salary, from any entity other than the Federal Government or 
as may be contributed out of the treasury of any State, county, or 
municipality, for his services to the Federal Government.
    (c) DoD employees shall become familiar with all ethics provisions, 
including the standards set out in Executive Order 12674, 54 FR 15159, 3 
CFR, 1989 Comp., p. 215-218, and comply with them;
    (d) DoD employees shall become familiar with the scope of and 
authority for the official activities for which they are responsible. 
Sound judgment must be exercised. All DoD employees must be prepared to 
account fully for the matter in which that judgment has been exercised;
    (e) If the propriety of a proposed action or decision is in question 
for any reason, DoD employees shall seek guidance from a DoD component 
legal counsel, the DoD component DAEO or designee, or Ethics Counselor, 
as appropriate;
    (f) Individual conduct, official programs and daily activities 
within DoD shall be accomplished lawfully and ethically;
    (g) DoD employees shall adhere strictly to DoD policy of equal 
opportunity, regardless of race, color, religion, gender, age, national 
origin, or handicap, in accordance with applicable laws and regulations.



Sec. 84.4  General responsibilities.

    (a) The Head of each DoD component shall:
    (1) Exercise personal leadership and take personal responsibility 
through the DoD component DAEO or designee for establishing and 
maintaining the DoD component's ethics program and be personally 
accountable for the DoD component's compliance with every requirement of 
this part, including the ethics and procurement integrity training 
requirements;
    (2) When authorized, appoint a DoD component DAEO, through a formal 
written delegation of authority, who is qualified to oversee and 
supervise the DoD component's ethics programs for DoD employees, both 
civilian and military (the GC, DoD, may serve as the DAEO for several 
DoD components);
    (3) When authorized, appoint a DoD component Atlernate DAEO who 
shall serve in the absence of the DoD component DAEO;
    (4) Provide sufficient resources (including funding and 
investigative, audit, legal, training and administrative staff) to 
enable the DoD component DAEO or designee to implement and administer 
the DoD component's ethics programs in a positive and effective manner.

[[Page 442]]

    (b) Each DoD component Designated Agency Ethics Official (DAEO) 
shall:
    (1) Be responsible for the implementation and administration of all 
aspects of the DoD component ethics program and manage and oversee local 
implementation and administration of all matters relating to ethics 
covered by this part.
    (2) Appoint DoD component Deputy DAEOs and Ethics Counselors and 
delegate to them written authority to act on behalf of the DoD component 
DAEO;
    (3) Ensure that ethics advice (and facts relied upon for such 
advice) is in writing, when practicable;
    (4) Ensure that written opinions regarding the applicability of 10 
U.S.C. 2397b and 41 U.S.C. 423 are provided within 30 days of request by 
any DoD employee provided that the requests is accompanied by complete 
and full information necessary to render an opinion;
    (5) Ensure that proper collection, review, and handling of the DoD 
component's financial and employment disclosure reports, including those 
submitted by Presidential appointees for confirmation purposes;
    (6) Be responsible for the implementation and administration of 
ethics and procurement integrity training and ensure that necessary 
resources are available to accomplish such training;
    (7) Provide periodic ethics and procurement integrity training for 
Ethics Counselors;
    (8) Certify Qualified Individuals to conduct ethics training;
    (9) Assist agency designees, through the chain of command or 
supervision, in initiating prompt, effective action to evaluate and 
process violations, potential violations, and appearances of violations 
of ethics laws or regulations, in accordance with applicable procedures 
as discussed in subpart J of this part;
    (10) Provide advice and assistance to DoD employees of the DoD 
component not otherwise served by a local Ethics Counselor;
    (11) Oversee and coordinate local ethics programs through a system 
for periodic evaluation and ensure that the DoD component provides and 
maintains sufficient funding, staff, space and resources to administer 
the DoD component's ethics programs;
    (12) Maintain liaison with the DoD EOC, OGE, and the DoD Standards 
of Condut Office (SOCO), and provide to SOCO and OGE all information 
required by law or regulation;
    (13) Represent the DoD component to OGE, Congress, the Executive 
Branch and the public on matters relating to ethics and standards of 
conduct.
    (c) Each DoD component Alternate Designated Agency Ethics Official 
(Alternate DAEO) shall serve in the absence of the DoD component DAEO 
and, when so serving, is authorized to take any action this part 
indicates may be taken only by the DoD component DAEO.
    (d) Each DoD component Deputy Designated Agency Ethics Official 
(Deputy DAEO) shall serve on behalf of the DoD component DAEO consistent 
with written delegation of authority from the DoD component DAEO.
    (e) The head of each DoD component command or organization shall:
    (1) Exercise personal leadership and take personal responsibility 
for establishing and maintaining the command's or organization's ethics 
program in coordination with the command's or organization's Ethics 
Counselors;
    (2) Be personally accountable for the command's or organization's 
ethics program, including its ethics and procurement integrity training 
program, and the command's or organization's compliance with every 
requirement of this part;
    (3) Provide sufficient resources to enable the command's 
organization's Ethics Counselors to implement and administer the local 
aspects of the command's or organization's ethics program in a positive 
and effective manner;
    (4) Ensure the prompt resolution of any actual or apparent conflict 
of interest involving a DoD employee of the command or organization;
    (5) Direct administrative officers (or equivalent) of the command or 
organization to ensure that the position descriptions of the DoD 
component command or organization indicate if financial disclosure 
report filing, annual

[[Page 443]]

ethics training or procurement integrity training is required and ensure 
the accuracy of personnel data provided by the director of the DoD 
component personnel office (or equivalent) on DoD employees of the 
command or organization;
    (6) Direct administrative officers (or equivalent) of the command or 
organization to coordinate with the DoD component DAEO or designee to 
develop lists of all DoD employees of the command or organization who 
are required to receive ethics and procurement integrity training, 
schedule such training, annotate such lists to indicate when required 
training was accomplished and retain annotated lists for three years;
    (7) Ensure that DoD employees of the command or organization who are 
in positions requiring the filing of SF 450,\2\ ``Confidential Financial 
Disclosure Report,'' July 1992, do so in a timely manner;
---------------------------------------------------------------------------

    \2\ Copies are available from U.S. Office of Government Ethics, 1201 
New York Avenue NW., Suite 500, Washington, DC 20005-3917.
---------------------------------------------------------------------------

    (8) Ensure that DoD employees of the command or organization attend 
required ethics and procurement integrity training.
    (f) The General Counsel of each DoD component shall:
    (1) Serve as the DAEO for the DoD component unless otherwise 
delegated;
    (2) Support all aspects of the ethics program of the DoD component;
    (3) Provide legal guidance and assistance to the DoD component DAEO 
or designee.
    (g) The Judge Advocate General of each Military Department shall:
    (1) Provide legal guidance and assistance to Ethics Counselors under 
his supervision;
    (2) Support all aspects of the ethics program of the Military 
Department.
    (h) The General Counsel, DoD (GC, DoD) shall:
    (1) Maintain the DoD SOCO and provide sufficient resources to enable 
SOCO to oversee and coordinate DoD component ethics programs, to produce 
reports required by Congress and maintain report data, and to manage the 
DoD EOC;
    (2) Represent DoD as a whole to OGE, Congress, the Executive Branch, 
and the public when called upon to do so on matters relating to ethics 
policy;
    (3) Have the authority to incorporate changes to Government-wide 
regulations that are reprinted in this part without formal coordination.
    (i) Each agency designee shall:
    (1) In accordance with Sec. 84.10(g), provide prior approval or 
disapproval of outside activities by DoD employees under his 
responsibility;
    (2) Receive and appropriately process reports of suspected 
violations of ethics statutes or regulations and possible conflicts of 
interest;
    (3) Receive and appropriately process reports of non-compliance with 
the filing requirements of subpart G of this part;
    (4) Perform all the other duties of an agency designee established 
in this part and in 5 CFR part 2635;
    (5) Annually determine those positions under his responsibility that 
require the filing of SF 450s, and annual ethics and procurement 
integrity training.
    (j) The DoD Standards of Conduct Office (SOCO) shall:
    (1) Manage the DoD EOC and call periodic meetings to consider 
current issues in ethics and standards of conduct;
    (2) Coordinate DoD component ethics programs, including providing 
uniform guidance and training material;
    (3) Collect and publish important written opinions from DoD 
components, when practicable, to promote uniformity of ethics opinion 
throughout DoD;
    (4) Monitor and assist DoD component DAEOs in ensuring effective 
corrective action is taken to remedy violations, potential violations 
and the appearance of violations of ethics laws or this part;
    (5) Certify Qualified Individuals to conduct ethics training who may 
be used by DoD components;
    (6) Make ethics and procurement integrity training for ethics 
trainers available on an ongoing basis to ensure that Qualified 
Individuals are uniformly prepared to provide such training;

[[Page 444]]

    (7) Distribute ethics and procurement integrity training material to 
all DoD component DAEOs for use in all types of ethics and procurement 
integrity training;
    (8) In the interest of Federal Government efficiency and economy, 
establish and maintain a resource center of ethics and procurement 
integrity materials (including training materials) developed by DoD 
components.
    (k) The DoD Ethics Oversight Committee (EOC) shall:
    (1) Meet periodically, as necessary;
    (2) Consider general ethics issues or current issues and make 
recommendations to promote uniformity of ethics opinions throughout DoD;
    (3) Provide recommendations to DoD component DAEOs on particular 
ethics matters in accordance with this part;
    (4) Provide recommendations for DoD input on proposed ethics 
legislation and regulations.
    (l) The Director, Washington Headquarters Services shall:
    (1) Prepare an annual report listing all the defense contractors 
that have been awarded $10 million or more in defense contracts during 
the fiscal year and publish the report in the Federal Register not later 
than December 15 following the end of the fiscal year;
    (2) Prepare an annual report listing all the defense contractors 
that have been awarded $25,000 or more in defense contracts during the 
fiscal year and distribute to the DoD component DAEOs not later than 
December 31 following the end of the fiscal year.
    (m) The Under Secretary of Defense for Acquisition shall prepare an 
annual report listing all the major defense systems as defined by 10 
U.S.C. 2302(5), and the prime defense contractors responsible for each, 
that were in progress during the fiscal year and provide the report to 
the DoD SOCO for publication in the Federal Register not later than 
December 31 following the end of the fiscal year;
    (n) Each Ethics Counselor shall:
    (1) Provide written and oral advice, counseling, and assistance to 
his DoD component command or organization and to the DoD employees of 
his DoD component command or organization, on all ethics matters, 
particularly areas covered by this part and related statutes and 
regulations;
    (2) Request assistance, through appropriate channels, from the DoD 
component DAEO or designee on any matter than cannot be resolved 
locally;
    (3) Maintain a current copy of this part, and all changes, for 
review by any DoD employee;
    (4) Maintain a thorough understanding of current DoD ethics policy 
through contact with the DoD component DAEO, attendance at periodic 
ethics training courses, and other appropriate methods;
    (5) Promptly provide a copy to the DoD component DAEO of precedental 
written decisions to assist uniformity throughout the DoD components;
    (6) Perform other duties as assigned by written delegation from the 
DoD component DAEO;
    (7) Review financial disclosure reports in accordance with subpart G 
of this part.
    (o) The Inspector General of each DoD component shall:
    (1) Investigate ethics matters arising in the DoD component, and 
refer any such matters that involve suspected criminal violations to the 
appropriate criminal investigative office of the DoD component;
    (2) Report to the DoD component DAEO or designee on investigations 
that result in referrals to the Department of Justice (DoJ) and on 
disciplinary actions that must be reported in response to the OGE annual 
ethics survey;
    (3) Ensure inspectors and agents are educated in ethics matters to 
ensure appropriate handling of ethics related cases and calls;
    (p) The director of each DoD component personnel office (or 
equivalent) shall:
    (1) Provide the DoD component DAEO or designee such personnel data 
on DoD employees, both civilian and military, as may be required by the 
DoD component DAEO or designee;
    (2) Assign personnel action officers the responsibility of providing 
the required information at local levels;
    (3) In coordination with the DoD component DAEO or designee, 
establish procedures to inform new DoD employees of their obligation to 
receive

[[Page 445]]

ethics and procurement integrity training as required;
    (4) In coordination with the DoD component DAEO or designee, 
establish out-processing procedures and records to advise DoD employees 
of available counseling regarding post-employment and procurement 
integrity restrictions prior to departure from DoD;
    (5) In coordination with the DoD component DAEO or designee, 
establish procedures to advise incoming and outgoing DoD employees of 
their financial and employment disclosure reporting obligations.
    (q) The administrative officer (or equivalent) of each DoD component 
command and organization shall:
    (1) Ensure that each position description of the DoD component 
command or organization indicates if an SF 278,\3\ ``Public Financial 
Disclosure Report,'' January 1991, or SF 450, and annual ethics and 
procurement integrity training are required so prospective or new DoD 
employees are on notice of such requirements prior to employment;
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    \3\ Copies are available from U.S. Office of Government Ethics, 1201 
New York Avenue NW., Suite 500, Washington, DC 20005-3917.
---------------------------------------------------------------------------

    (2) Upon the request of the DAEO or designee, ensure the accuracy of 
personnel data provided by the Director of the DoD component personnel 
office on DoD employees of the DoD component command or organization;
    (3) In coordination with the DoD component DAEO or designee, develop 
a list of all DoD employees within the DoD component command or 
organization who are required to receive ethics and procurement 
integrity training;
    (4) In coordination with the DoD component DAEO or designee, ensure 
that DoD employees of the DoD component command or organization are 
scheduled to receive required ethics and procurement integrity training;
    (5) Annotate such list to indicate when required training was 
accomplished and retain annotated list for three years.
    (r) Each DoD employee shall:
    (1) Abide by the ethical principles established by Executive Order 
12674, ethics statutes, and the ethics regulations promulgated by OGE 
and the DoD thereunder;
    (2) Set a personal example for fellow DoD employees in performing 
official duties within the highest ethical standards;
    (3) Report suspected violations of ethics regulations in accordance 
with Sec. 84.38(a);
    (4) Perform all official duties so as to facilitate Federal 
Government efficiency and economy;
    (5) Attend ethics and procurement integrity training as required;
    (6) File financial and employment disclosure reports as required.
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20029, Apr. 24, 1995]



                 Subpart B--Standards of Ethical Conduct



Sec. 84.5  Office of Government Ethics regulation.

    See 5 CFR part 2635, ``Standards of Ethical Conduct for Employees of 
the Executive Branch.'' The following sections of 5 CFR part 2635 are 
military general orders: Sec. 2635.202(a); 
Sec. 2635.202(c)(1),(2),(3),(4), and (5) (excluding example and 
paragraphs (c)(4) (i) through (iii)); Sec. 2635.302; Sec. 2635.402(a) 
(excluding note); Sec. 2635.502(a) (excluding paragraphs (a)(1) and(2)); 
Sec. 2635.503(a) (excluding examples); Sec. 2635.604(a) (excluding the 
last sentence and examples); Sec. 2635.606(a) (excluding the last 
sentence and example); the first sentence of Sec. 2635.702; 
Sec. 2635.702(a) (excluding examples); Sec. 2635.702(b) (excluding 
examples); Sec. 2635.702(c) (excluding examples); Sec. 2635.703(a); 
Sec. 2635.704(a); Sec. 2635.705(b) (excluding examples); the first 
paragraph of Sec. 2635.802; Sec. 2635.802(a); Sec. 2635.802(b) 
(excluding sentence beginning ``Employees are cautioned * * *'' and 
excluding examples); Sec. 2635.805(a); Sec. 2635.807(a) (excluding 
paragraphs (a)(1) and (2)); the first sentence of Sec. 2635.808; 
Sec. 2635.808(b) (excluding example); and Sec. 2635.808(c) (excluding 
paragraph (c)(3) and examples).



Sec. 84.6  DoD supplement to 5 CFR part 2635.

    See 5 CFR 3601.101-3601.108, ``Supplemental Standards of Conduct for 
Employees of the Department of Defense.'' The following sections of 5 
CFR

[[Page 446]]

3601.101-3601.108 are military general orders: Sec. 3601.104(a) 
(excluding paragraphs (a)(1) and (2)); Sec. 3601.104(b); 
Sec. 3601.105(a); Sec. 3601.105(b); Sec. 3601.105(c); Sec. 3601.106; and 
Sec. 3601.108 (excluding paragraphs (a) through (c)).



Sec. 84.7  DoD guidance.

    (a) Gifts--(1) Procurement officials. In addition to the 
restrictions on gifts in 5 CFR part 2635, subpart B, procurement 
officials are subject to the gift acceptance restrictions of the 
procurement integrity statute. See 41 U.S.C. 423 and 48 CFR 3.104.
    (2) Gifts from foreign governments. There are special DoD rules 
governing gifts from foreign governments. See 5 U.S.C. 7342 and 32 CFR 
part 95.
    (3) Ship launch and similar ceremonies. A DoD employee may not 
accept gifts in connection with a ceremony to mark the completion of a 
milestone in shipbuilding, aircraft completion, or similar vehicle 
launch or roll-out unless attendance is official and is approved by the 
head of the DoD component command or organization and the gifts are 
limited to the following (see 5 U.S.C. 7301 note):
    (i) Attendance at appropriate functions incident to the ceremony, 
such as a dinner preceding the ceremony and reception following it, and 
related food, hospitality and entertainment, as long as the function and 
related benefits are not lavish, excessive, or extravagant;
    (ii) Tangible gifts or mementos in connection with the ceremony to 
DoD employees, their spouses, and their dependent children, who are 
official participants in the ceremony, as long as the aggregate retail 
value does not exceed $100 per family and the cost is not borne by the 
Federal Government. When such gifts exceed the $100 limit, the recipient 
shall pursue one of the following alternatives:
    (A) Return the gift to the donor;
    (B) Retain the gift after reimbursing the donor the full value of 
the gift; or
    (C) Forward the gift to the appropriate DoD component official for 
disposition as a gift to the Federal Government in accordance with 
statute. See 10 U.S.C. 2601.
    (b) Use of Federal Goverment telephone systems. See GSA regulation 
41 CFR part 201-21, subpart 201-21.6, on manangement of Federal 
Government telecommunications resources.
    (1) The use of Federal Government telephone systems (including calls 
over commercial systems which will be paid for by the Federal 
Government), except as provided in paragraph (b)(2) of this section 
shall be limited to the conduct of official business. Such official 
business calls may include emergency calls and calls that the DoD 
components determine are necessary in the interest of the Federal 
Government.
    (2) Personal calls (such as calls to speak to spouse/minor children 
or to arrange for emergency repairs to residence or automobile) that 
must be made during working hours over the commercial local/long 
distance network may properly be authorized as being in the best 
interest of the Federal Government if the call is consistent with the 
following criteria:
    (i) It does not adversely affect the performance of official duties 
by the DoD employee or the DoD employee's organization;
    (ii) It is of reasonable duration and frequency; and
    (iii) It could not reasonably have been made at another time;
    (iv) And, in the case of long distance calls, is:
    (A) Charged to the employee's home telephone number or other non-
Federal Government number (third number call);
    (B) Made to an 800 toll-free number;
    (C) Charged to the called party if a non-Federal Government number 
(collect call);
    (D) Charged to a personal telephone credit card; or
    (E) When traveling for more than one night on Federal Government 
business in the United States, a brief call to his residence to notify 
family of a schedule change.
    (c) Gambling. (1) [The following is a General Order] A DoD employee 
shall not participate while on Federally-owned or leased property or 
while on duty (for military members, this means, in this context, 
present for duty) for the Federal Government in any gambling activity 
prohibited by 5 CFR 735.201 except:

[[Page 447]]

    (i) Activities necessitated by a DoD employee's law enforcement 
duties;
    (ii) Activities by organizations composed primarily of DoD employees 
or their dependents for the benefit of welfare funds for their own 
members or for the benefit of other DoD employees or their dependents, 
subject to the limitations of local law and of Sec. 84.9(k) and (l), 
when approved by the Head of the DoD Component or designee;
    (iii) Private wagers among DoD employees if based on a personal 
relationship and transacted entirely within assigned Federal Government 
living quarters and within the limitations of local laws [end of General 
Order; or
    (iv) Purchases of lottery tickets authorized by any State from blind 
vendors licensed to operate vending facilities in accordance with 20 
U.S.C. 107a(5).
    (2) Gambling with a subordinate may be a violation of Articles 133 
and 134 of the Uniform Code of Military Justice (UCMJ) (10 U.S.C. 801-
940).
    (3) Gambling may be prohibited by Federal Government building and 
grounds regulations, such as 32 CFR part 40b which prohibits gambling in 
the Pentagon.
    (d) Outside employment and activity. In addition to 5 CFR 3601.107 
except to the extent that when procedures have been established by 
higher authority for any class of DoD employees (e.g., DoD Directive 
6025.7 \4\), agency designees may require DoD employees under their 
jurisdiction to report any outside employment or activity prior to 
engaging in the employment or activity. See Sec. 84.10(g).
---------------------------------------------------------------------------

    \4\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    (1) The commander, head of the organization, or supervisor may 
prohibit the employment or activity if he believes that the proposed 
outside activity will detract from readiness or pose a security risk.
    (2) If action is not taken to prohibit the employment or activity, 
the DoD employee is free to engage in the employment or activity in 
keeping with other restrictions of this part.
    (e) Use of military title by retirees or reserves. Retired military 
members and members of reserve components, not on active duty, may use 
military titles in connection with commercial enterprises, provided they 
clearly indicate their retired or inactive reserve status. However, any 
use of military titles is prohibited if it in any way casts discredit on 
DoD or gives the appearance of sponsorship, sanction, endorsement, or 
approval by DoD. In addition, in overseas areas, commanders may further 
restrict the use of titles by retired military members and members of 
reserve components.
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20029, Apr. 24, 1995]



             Subpart C--Activities With Non-Federal Entities



Sec. 84.8  Office of Government Ethics regulation.

    See 5 CFR part 2636, ``Limitations on Outside Employment and 
Prohibition of Honoraria; Confidential Reporting of Payments of 
Charities in Lieu of Honoraria.''



Sec. 84.9  Official participation in non-Federal entities.

    (a) Attendance. (1) Agency designees may permit their DoD employees 
to attend meetings, conferences, seminars or similar events sponsored by 
non-Federal entities in their official DoD capacities at Federal 
Government expense if there is a legitimate Federal Government purpose 
in accordance with 5 U.S.C. 4101 et seq. and 37 U.S.C. 412, such as 
training a DoD employee beyond maintaining professional credentials or 
gathering information of value to the DoD.
    (2) DoD employees are prohibited from attending events in their 
official DoD capacities at Federal Government expense in order to 
acquire or maintain professional credentials that are a minimum 
requirement to hold the DoD position. See 5 U.S.C. 5946 and 31 U.S.C. 
1345.
    (b) Membership. DoD employees may serve as DoD liaisons to non-
Federal entities when appointed by the head os the DoD Component command 
or organization who determines there is a significant and continuing DoD 
interest to be served by such representation. Liaisons serve as part of 
their official

[[Page 448]]

DoD duties and under DoD component memberships. DoD employees may not 
accept DoD component membership in a non-Federal entity on behalf of DoD 
except as provided by statute or regulation. DoD may pay for DoD 
component memberships in accordance with opinions of the Comptroller 
General, such as 24 Comp. Gen. 814 (which may be purchased from the U.S. 
Government Printing Office, Washington, DC 20402). DoD is prohibited 
from paying for individual memberships by 5 U.S.C. 5946. See also 10 
U.S.C. 2601.
    (c) Management. DoD employees may not participate in their official 
DoD capacities in the management of non-Federal entities without 
authorization from the Head of the DoD component. However, authorized 
DoD employees may officially represent DoD in discussions of matters of 
mutual interest with non-Federal entities, may participate in the 
determinations and conclusions of non-Federal entities, and may cast a 
vote on issues within the scope of the DoD employees' official 
responsibilities.
    (d) Impartiality of agency designee and travel-approving Authority. 
When a DoD employee requests permission to travel to or participate in 
activities of a non-Federal entity and the agency designee or travel 
approving authority is an active participant in the non-Federal entity, 
that agency designee or travel approving authority may not act on the 
DoD employee's request but shall defer such action to the next higher 
superior or another independent DoD authority. See 5 CFR 2635.402 and 
2635.502 and 18 U.S.C. 208.
    (e) Impartiality of DoD employees. DoD employees are generally 
prohibited from engaging in any official activities in which a non-
Federal entity is a party or has a financial interest if the DoD 
employee is an active participant in the non-Federal entity or has been 
an officer in the non-Federal entity within the last year. See 5 CFR 
2635.402 and 2635.502 and 18 U.S.C. 208.
    (f) Endorsement. [The following is a General Order] Endorsement of a 
non-Federal entity may be neither stated nor implied by DoD or DoD 
employees and DoD employees may not use their titles or positions to 
suggest official endorsement or preferential treatment of any non-
Federal entity except those listed in Sec. 84.9(k) [end of General 
Order]. Use of military grade as part of an individual's name in 
relationship to membership in private organizations is permissible. See 
5 CFR 2635.702(c).
    (g) Distributing information. In accordance with public affairs 
regulations, official channels may be used to notify DoD employees of 
events sponsored by non-Federal entities.
    (h) Remuneration. DoD employees may not receive any salary or salary 
supplement from a non-Federal entity for performance of DoD duties.
    (i) Co-sponsorship. A DoD component is a sponsor or co-sponsor of an 
event when that DoD component is one of the organizations holding the 
event or in whose name the event is held. Co-sponsorship of events with 
a non-Federal entity is prohibited except as follows:
    (1) A DoD component may co-sponsor a civic or community activity 
where the head of the DoD component command or organization determines 
that the activity is unrelated to the purpose or business of the co-
sponsoring, non-Federal entity or the purpose or business of any of its 
members. See DoD Instruction 5410.20 \5\;
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    \5\ See footnote 4 to Sec. 84.7(d).
---------------------------------------------------------------------------

    (2) A DoD component may co-sponsor a conference, seminar, or similar 
event with a non-Federal entity when all of the following requirements 
are met:
    (i) The head of the DoD component command or organization finds that 
the subject matter of the conference (or co-sponsored portion) is 
scientific, technical or professional issues that are relevant to the 
DoD component's mission;
    (ii) The head of the DoD component command or organization finds 
that the purpose of co-sponsorship is to transfer federally developed 
technology or to stimulate wider interest and inquiry into the 
scientific, technical or professional issues previously identified;
    (iii) The non-Federal entity is a recognized scientific, technical 
or professional organization approved by the DoD component DAEO for this 
purpose; and
    (iv) The DoD component accomplishes the co-sponsorship through a

[[Page 449]]

contract, grant or cooperative agreement as identified in 31 U.S.C. 6303 
through 6306; or a Cooperative Research and Development Agreement (CRDA) 
as defined in 15 U.S.C. 3710a; or a cooperative agreement or other 
transaction identified in 10 U.S.C. 2371.
    (3) If the DoD component desires to sponsor an event, but requires 
assistance in making the arrangements, the DoD component may arrange, 
through normal acquisition procedures, to have a non-Federal entity 
provide whatever assistance is necessary. If the event is open to 
individuals outside the Federal Government, attendance may not be 
limited to members of the supporting non-Federal entity. The supporting 
non-Federal entity may be permitted to mention its support in conference 
materials, but not in terms which imply that it is sponsoring or co-
sponsoring the event.
    (j) Participation in conferences and similar events. Subject to the 
provisions of paragraph (l) of this section and in accordance with 
public affairs regulations and 31 U.S.C. 1345, DoD employees may 
participate in their official DoD capacities as speakers or panel 
members at conferences, seminars, or similar events sponsored by non-
Federal entities.
    (k) Fundraising and membership drives. (1) [The following is a 
General Order] Except as provided in paragraph (l) of this section, DoD 
components shall not officially support and DoD employees shall not 
officially endorse or officially participate in membership drives or 
fundraising for any non-Federal entity except the following 
organizations which are not subject to the provisions of paragraph (l) 
of this section:
    (i) The Combined Federal Campaign (CFC);
    (ii) Emergency and disaster appeals approved by the Office of 
Personnel Management (OPM);
    (iii) Army Emergency Relief;
    (iv) Navy-Marine Corps Relief Society;
    (v) Air Force Assistance Fund, including:
    (A) Air Force Enlisted Men's Widows and Dependents Home Foundation, 
Inc.;
    (B) Air Force Village;
    (C) Air Force Aid Society;
    (D) General and Mrs. Curtis E. LeMay Foundation.
    (vi) Other organizations composed primarily of DoD employees or 
their dependents when fundraising among their own members for the 
benefit of welfare funds for their own members when approved by the head 
of the DoD component command or organization [end of General Order].
    (2) Fundraising by DoD employees is strictly regulated by Executive 
Order 12353, 47 FR 12785, 3 CFR, 1982 Comp., p. 139, 5 CFR part 950, DoD 
Directive 5035.1 \6\, DoD Instruction 5035.5 \7\, DoD Directive 5410.18 
\8\, 5 CFR 2635.808 and by the prohibition against preferential 
treatment established in paragraph (f) of this section.
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    \6\ See footnote 4 to Sec. 84.7(d).
    \7\ See footnote 4 to Sec. 84.7(d).
    \8\ See footnote 4 to Sec. 84.7(d).
---------------------------------------------------------------------------

    (l) Support of non-Federal entity events. (1) The head of a DoD 
component command or organization may provide DoD employees in their 
official capacities as speakers, panel members or other participants, 
or, on a limited basis, the use of DoD facilities and equipment (and the 
services of DoD employees necessary to make proper use of the 
equipment), in support of an event sponsored by a non-Federal entity 
when the head of the DoD command or organization determines all of the 
following:
    (i) The support does not interfere with the performance of official 
duties and would in no way detract from readiness;
    (ii) The sponsoring, non-Federal entity is not affiliated with the 
CFC (including local CFC) or, if affiliated with the CFC, the Director, 
OPM or designee has no objection to DoD support of the event (OPM 
generally has no objection to support of events that do not specifically 
target Federal employees for fundraising);
    (iii) The community relations with the immediate community and/or 
other legitimate DoD interests are served by the support;
    (iv) It is appropriate to associate DoD, including the concerned 
Military Department, with the event;

[[Page 450]]

    (v) The event is of interest and benefit to the local civilian or 
military community as a whole;
    (vi) The DoD Component command or organization is able and willing 
to provide the same support to comparable events that meet the criteria 
of this subsection and are sponsored by other similar non-Federal 
entities;
    (vii) The use is not restricted by other statutes or regulations; 
and
    (viii) Except for a charitable fundraising event that meets all 
other criteria for DoD participation, no admission fee (beyond what will 
cover the reasonable costs of sponsoring the event) is charged for the 
event, no admission fee (beyond what will cover the reasonable costs of 
sponsoring the event) is charged for the portion of the event supported 
by the DoD, or DoD support to the event is incidental to the entire 
event in accordance with public affairs guidance.
    (2) Involvement of DoD resources in air shows sponsored by non-
Federal entities is approved or disapproved by the Office of the 
Assistant Secretary of Defense (Public Affairs).
    (3) Speeches by DoD employees at events sponsored by non-Federal 
entities are not precluded when the speech expresses an official DoD 
position in a public forum in accordance with public affairs guidance.
    (m) Relationship governed by other authorities. In addition to the 
provisions of this section, certain organizations have special 
relationships with the DoD or its employees specially recognized by law 
or by other directives. The organizations include:
    (1) Certain banks and credit unions (32 CFR part 231);
    (2) United Service Organization (DoD Directive 1330.12 \9\);
---------------------------------------------------------------------------

    \9\ See footnote 4 to Sec. 84.7(d).
---------------------------------------------------------------------------

    (3) Labor organizations (5 U.S.C. Chapter 71; DoD 1400.25-M \10\, 
Chapter 711);
---------------------------------------------------------------------------

    \10\ Written request should be forwarded to: OASD(P&R)/CPP/EEO, room 
3D269, Pentagon, Washington, DC 20301.
---------------------------------------------------------------------------

    (4) Combined Federal Campaign (Executive Order 10927, 26 FR 2383, 3 
CFR, 1959-1963 Comp., p. 508) DoD Directive 5035.1;
    (5) Association of Management Officials and Supervisors (DoD 
Instruction 5010.30 \11\);
---------------------------------------------------------------------------

    \11\ See footnote 4 to Sec. 84.7(d).
---------------------------------------------------------------------------

    (6) American Registry of Pathology (10 U.S.C. 177); Henry M. Jackson 
Foundation for the Advancement of Military Medicine (10 U.S.C. 178); 
American National Red Cross (10 U.S.C. 2542); Boy Scouts Jamborees (10 
U.S.C. 2544); Girl Scouts International Events (10 U.S.C. 2545); Shelter 
for Homeless (10 U.S.C. 2546); National Military Associations; 
Assistance at National Conventions (10 U.S.C. 2548); Assistance from 
American National Red Cross (10 U.S.C. 2602); United Seaman's Service 
Organization (10 U.S.C. 2604); Scouting: Cooperation and Assistance in 
Foreign Areas (10 U.S.C. 2606); and Civil Air Patrol (10 U.S.C. 9441-
9442).
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20029, Apr. 24, 1995]



Sec. 84.10  Personal participation in non-Federal entities.

    (a) Participation--(1) Fundraising and other activities. Subject to 
other provisions of this part, DoD employees may voluntarily participate 
in activities of non-Federal entities as individuals in their personal 
capacities provided they act exclusively outside the scope of their 
official position. Purely personal, unofficial, volunteer efforts to 
support fundraising are not prohibited where the efforts do not imply 
DoD endorsement. The head of the DoD component command or organization 
may authorize such activities outside the Federal Government workplace, 
such as at public entrances, in community support facilities and in 
personal quarters. See 5 CFR part 950 and Executive Order 12353. These 
activities may be further limited by Federal Government building and 
grounds regulations.
    (2) Professional associations and learned societies. Agency 
designees may permit their DoD employees to voluntarily participate in 
the activities of non-profit professional associations and learned 
societies without being charged leave and to use Federal Government 
equipment or administrative support services to prepare papers to be

[[Page 451]]

presented at such association or society events or to be published in 
professional journals, when:
    (i) The participation or paper is related to the DoD employee's 
official position or to DoD functions, management or mission; and
    (ii) The Agency can derive some benefit from the participation or 
preparation, such as expansion of professional expertise by DoD 
employees or improved public confidence derived fro the professional 
recognitions of the DoD employee's competence;
    (iii) The participation or preparation of the paper does not 
interfere with the performance of official DoD duties.
    (3) Community support activities. Agency designees may permit 
excused absences for reasonable periods of time for their DoD employees 
to voluntarily participate in community support activities that promote 
civic awareness and uncompensated public service such as disaster relief 
events, blood donations, and voting and registring to vote.
    (4) Impartiality of agency designee and travel approving authority. 
When a DoD employee requests permission to travel to or participate in 
activities of a non-Federal entity and the agency designee or travel 
approving authority is an active participant in the non-Federal entity, 
that agency designee or travel approving authority may not act on the 
DoD employee's request but shall defer such action to the next higher 
superior or another independent DoD authority. See 5 CFR 2635.402 and 
2635.502 and 18 U.S.C. 208.
    (b) Membership and management. DoD employees may become members and 
participate in the management of non-Federal entities as individuals in 
a personal capacity provided they act exclusively outside the scope of 
their official position. Except for such service in the organizations 
listed in Sec. 84.9(k)(1), a DoD empoyee may not serve in a personal 
capacity as an officer, member of the Board of Directors, or in any 
other similar position in any non-Federal entity offered because of 
their DoD assignment or position.
    (c) Impartiality of DoD Employees. DoD employees are generally 
prohibited from engaging in any official activities in which a non-
Federal entity is a party or has a financial interest if the DoD 
employee is an active participant in the non-Federal entity or has been 
an officer in the non-Federal entity within the last year. See 5 CFR 
2635.402 and 2635.502 and 18 U.S.C. 208.
    (d) Interference with employment of local civilians. Enlisted 
members on active duty may not be ordered or authorized to leave their 
post to engage in a civilian pursuit, business, or professional activity 
if it interferes with the customary or regular employment of local 
civilians in their art, trade, or profession. See 10 U.S.C. 974.
    (e) Competition with civilian musicians. Members of military bands 
are very restricted in the degree to which they may compete off base 
with civilian musicians. See 10 U.S.C. 3634, 6223 and 8634.
    (f) Use of Federal Government resources--(1) Authorized uses. Other 
than Federal Government time authorized in paragraphs (a)(2) and (a)(3) 
of this section, Federal Government assets, employees, or property may 
not be used in support of personal participation in non-Federal 
entities, except as follows:
    (i) Agency designees may permit occasional use of Federal Government 
telephone systems in keeping with GSA rules on personal calls, provided 
that such use does not interfere with the performance of official 
duties. See Sec. 84.7(b) and 41 CFR 201-21.6;
    (ii) Because the cost to the Federal Government is minimal, the use 
of office telecommunications equipment for local calls, word processing 
equipment, libraries and similar resources and facilities whose use 
would not affect Federal Government costs significantly, may be 
permitted by the agency designee if:
    (A) The non-Federal entity is not a prohibited source;
    (B) The agency designee determines that:
    (1) A legitimate public interest is served by the use; or
    (2) The use would enhance the professional development or skills of 
the DoD employee in his current position.
    (C) The use of such resources is made only during personal time, 
such as excused absence, lunch period, or after duty hours; and

[[Page 452]]

    (D) The use does not interfere with the performance of official 
duties.
    (2) Prohibited uses. (i) [The following is a General Order] Because 
of the potential for significant cost to the Federal Government, and the 
potential for abuse, DoD employees, such as secretaries, clerks, and 
military aides, may not be used to support the unofficial activity of 
another DoD employee in support of non-Federal entities except as 
provided in paragraph (a)(1) of this section [end of General Order].
    (ii) [The following is a General Order] For the same reasons, 
copiers and other duplicating equipment may not be used for unofficial 
activity in support of non-Federal entities [end of General Order].
    (g) Prior approval of outside employment and business activities. 
(1) A DoD employee, other than a special Government employee, who is 
required to file a financial disclosure report, SF 450 or SF 278, shall 
obtain written approval from the agency designee before engaging in a 
business activity or compensated outside employment with a prohibited 
source, unless general approval has been given in accordance with 
paragraph (g)(2) of this section. Approval shall be granted unless a 
determination is made that the business activity or compensated outside 
employment is expected to involve conduct prohibited by statute or 
regulation.
    (i) Business activity means any business, contractual or other 
financial relationship not involving the provision of personal services 
by the DoD employee. It does not include a routine commercial 
transaction or the purchase of an asset or interest, such as common 
stock, that is available to the general public.
    (ii) Employment means any form of non-Federal Government employment 
or business relationship involving the provision of personal services by 
the DoD employee. It includes, but is not limited to, personal services 
as an officer, director, employee, agent, attorney, consultant, 
contractor, general partner or trustee.
    (iii) Prohibited source has the meaning set forth in 5 CFR 
2635.203(d), as modified by the separate agency designations in 5 CFR 
3601.102.
    (2) The DoD component DAEO or designee may, by a written notice, 
exempt categories of business activities or employment from the 
requirement of paragraph (g)(1) of this section for prior approval based 
on a determination that business activities or employment within those 
categories would generally be approved and are not likely to involve 
conduct prohibited by statute or regulation.
    (3) A copy of the request for prior approval and the written 
approval shall be kept with the filed copy of the DoD employee's 
financial disclosure report, SF 450 or SF 278, or with the local Ethics 
Counselor.
    (4) Such DoD employees who have not obtained prior approval and who 
are, on the effective date of this supplemental rule, already engaged in 
an outside activity that requires prior approval shall have 90 days from 
that date to obtain such approval.
    (5) Except to the extent that when procedures have been established 
by higher authority for any class of DoD employee (e.g., DoD Directive 
6025.7 \12\, agency designees may require DoD employees under their 
jurisdiction to report any outside employment or activity prior to 
engaging in the employment or activity.
---------------------------------------------------------------------------

    \12\ See footnote 4 to Sec. 84.7(d).
---------------------------------------------------------------------------

    (i) The commander, head of the organization, or supervisor may 
prohibit the employment or activity if he believes that the proposed 
outside activity will detract from readiness or pose a security risk.
    (ii) If action is not taken to prohibit the employment or activity, 
the DoD employee is free to engage in the employment or activity in 
keeping with other restrictions of this part.
    (h) Teaching, speaking and writing--(1) Disclaimer for speeches and 
writings devoted to agency matters. [The following is a General Order] A 
DoD employee who uses or permits the use of his military grade or who 
includes or permits the inclusion of his title or position as one of 
several biographical details given to identify himself in connection 
with teaching, speaking or writing, in accordance with 5 CFR 
2635.807(b)(1), shall make a disclaimer if the subject of the teaching, 
speaking or writing

[[Page 453]]

deals in significant part with any ongoing or announced policy, program 
or operation of the DoD employee's agency, as defined in 5 CFR 
3601.102(a), and the DoD employee has not been authorized by appropriate 
agency authority to present that material as the agency's position.
    (i) The required disclaimer shall expressly state that the views 
presented are those of the speaker or author and do not necessarily 
represent the views of DoD or its components.
    (ii) Where a disclaimer is required for an article, book or other 
writing, the disclaimer shall be printed in a reasonably prominent 
position in the writing itself. Where a disclaimer is required for a 
speech or other oral presentation, the disclaimer may be given orally 
provided it is given at the beginning of the oral presentation [end of 
General Order].
    (2) Security clearance. A lecture, speech, or writing that pertains 
to military matters, national security issues, or subjects of 
significant concern to DoD shall be reviewed for clearance by 
appropriate security and public affairs offices prior to delivery or 
publication.
    (3) Honoraria. Compensation for a lecture, speech or writing may be 
restricted by the honoraria prohibition of 5 U.S.C. App. (Ethics in 
Government Act of 1978, sec. 501); 5 CFR part 2636, and 5 CFR 2635.807. 
However, the U.S. Office of Governemnt Ethics, by memorandum dated 
February 2, 1994, \13\ determined in accordance with a Department of 
Justice letter to the Director, Office of Government Ethics, \14\ that 
the Department of Justice will not seek to impose penalties for 
violations of 5 U.S.C. App. (Ethics in Government Act of 1978, sec. 
501); with respect to reseipt of honoraria between September 26, 1993 
and the date on which the Supreme Court issues its decision on this 
matter.
---------------------------------------------------------------------------

    \13\ See footnote 2 to Sec. 84.4(d)(7).
    \14\ See footnote 2 to Sec. 84.4(d)(7).
---------------------------------------------------------------------------

[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, Apr. 24, 1995]



                       Subpart D--Travel Benefits



Sec. 84.11  Acceptance of official travel benefits in kind or payment for official travel expenses.

    (a) Acceptance from non-Federal sources--(1) Official travel. 
Official travel by DoD employees shall be funded by the Federal 
Government except that DoD components may accept official travel 
benefits, including in kind subsistence and accommodations and payments 
or reimbursements of expenses, from non-Federal sources as provided in 
this subpart of this part.
    (2) Personal travel. This subpart does not apply to travel benefits 
provided to DoD employees in their personal capacities. However, DoD 
employees must report such travel expenses when appropriate in 
accordance with subpart G of this part. There may be limitations on 
acceptance of travel benefits in a personal capacity, including 
limitations on acceptance from prohibited sources, because of official 
position, and under 41 U.S.C. 423.
    (3) Acceptance procedures. Any official travel benefits from non-
Federal sources accepted by the travel approving authority must be:
    (i) Approved in writing by the travel approving authority with the 
advice of the DoD employee's Ethics Counselor;
    (ii) If accepted under the authority granted by 31 U.S.C. 1353, 
approved in advance of travel.
    (4) Spousal travel. The travel approving authorities for travel of a 
spouse accompanying a DoD employee on official travel that is paid for 
or provided in kind by a non-Federal source are as follows:
    (i) For DoD employees of OSD, Defense Agencies and OSD Field 
Activities, the Executive Secretary, OSD;
    (ii) For DoD employees of Military Departments, the Secretaries 
concerned or their designees;
    (iii) For DoD employees of the Chairman of the Joint Chiefs of Staff 
and the Joint Staff, the United or Specified Commands, and the Combined 
Commands and agencies, the Chairman of the Joint Chiefs of Staff, or his 
designee.
    (b) Acceptance of travel and related expenses by a DoD component 
from non-Federal sources--(1) Attendance at a

[[Page 454]]

meeting or similar function (31 U.S.C. 1353).
    (i) In accordance with 31 U.S.C. 1353 and GSA travel regulations, 41 
CFR 301-1.2 and part 304, Heads of DoD components may accept travel 
benefits from a non-Federal source incurred by DoD employees in 
connection with their attendance in an official capacity at a meeting or 
similar function. The Joint Federal Travel Regulations \15\ (JFTR), 
Chapter 7, part W, Paragraphs U7900-7908 (DoD Uniformed Services) and 
Joint Travel Regulations \16\ (JTR), Chapter 4, part Q, Paragraphs 
C4900-4908 (DoD Civilian Personnel) implement 41 CFR 301-1.2 and part 
304. For detailed guidance as to the applicability and application of 
specific authority, these regulations should be consulted directly.
---------------------------------------------------------------------------

    \15\ For sale by Superintendent of Documents, Congressional Sales 
Office, U.S. Government Printing Office, Washington, DC 20402
    \16\ See footnote 15 to Sec. 84.11(b)
---------------------------------------------------------------------------

    (ii) Where the GSA travel regulations, 41 CFR 301-1.2 and part 304, 
are inconsistent with the JFTR and JTR, 41 CFR 301-1.2 and part 304 are 
the controlling authorities.
    (iii) A DoD component may not accept travel benefits from non-
Federal sources under any other gift acceptance authority if 31 U.S.C. 
1353 applies.
    (iv) Payment guidelines. DoD employees (or their spouses) shall not 
accept cash payments on behalf of the Federal Government.
    (A) When travel benefits are paid for rather than provided in kind, 
payments from the non-Federal source will be by check or similar 
instrument made payable to the United States Treasury. Any such payment 
received by the DoD employee (or spouse) shall be submitted with his 
travel voucher as soon as practicable.
    (B) The DoD employee shall exclude from his travel voucher any 
request for reimbursement for travel benefits furnished in kind by a 
non-Federal source on the travel voucher to ensure that appropriate 
deductions are made in the travel, per diem, or other allowances payable 
by the United States.
    (v) Reporting. Each travel-approving authority designated by the DoD 
component Head to accept travel benefits from non-Federal sources shall 
submit a report to the DoD component DAEO or designee semiannually on 
April 30 and October 31 to accommodate the required reporting to OGE on 
May 31 and November 30 each year. See JFTR, Paragraph U7908 and JTR, 
Paragraph C4908 for details on what to report.
    (2) DoD component gift acceptance statutes. In accordance with 
procedures established by those DoD components with gift acceptance 
authority under 10 U.S.C. 2601, travel benefits may be accepted by such 
DoD component Heads or their designees.
    (i) This authority may not be used to accept travel benefits covered 
by 31 U.S.C. 1353.
    (ii) This authority may be used to accept, for example, 
reimbursement for travel benefits of flight crew members that accompany 
Federal Government aircraft to international air shows or the expenses 
incurred by the attendance of DoD employees at ceremonial events in 
order to enhance a DoD component's public relations. This authority may 
also be used to accept travel benefits offered after travel has begun or 
has been completed.
    (3) DoD component DAEO or designee approval. Acceptance of official 
travel benefits from non-Federal sources described in Sec. 84.11(b)(1) 
and (2) requires the concurrence of the DoD component DAEO or designee.
    (c) Acceptance of contributions, awards and other payments by DoD 
employees from tax-exempt organizations (5 U.S.C. 4111)--(1) 
Applicability. Military members are permitted to accept contributions, 
awards and other payments the same as civilian DoD employees in 
accordance with the requirements of this section.
    (2) Conditions for acceptance. Except when acceptance is permitted 
under 5 CFR 2635.204(d), DoD employees are permitted to accept 
contributions, awards and other payments directly from non-Federal 
sources only when all of the following conditions are met:
    (i) The source is tax-exempt organization described by 26 U.S.C. 
501(c)(3) or a State or local government (see 5 CFR part 410, subpart 
G);
    (ii) The contribution, award, or payment of travel benefits is 
incidental to

[[Page 455]]

training in non-Federal Government facilities or attendance at a 
meeting;
    (iii) An appropriate deduction is made from any payment by the 
Federal Government to the DoD employee for their official travel 
entitlement;
    (iv) The contribution, award, or payment is not a reward for 
services to the non-Federal source;
    (v) Acceptance of the contribution, award or payment would not 
reflect unfavorably on the DoD employee's ability to perform his duties 
in a fair and objective manner, nor otherwise compromise the integrity 
of any Federal Government action; and
    (vi) The travel approving authority approves the acceptance of the 
contribution, award or payment in writing.
    (3) Payments from multiple sources. When more than one organization 
participates in making a single contribution, award, or payment, only 
the organization that selects the recipient and administers the funds 
from which the contribution, award, or payment is made will be 
considered the source.
    (4) Reporting. (i) Financial disclosure reporting individuals must 
report acceptance of these travel benefits if the fair market value of 
those benefits reaches the reportable amount.
    (ii) Travel benefits accepted under 5 U.S.C. 4111 shall be reported 
by the travel-approving authority directly to the DoD component DAEO or 
designee within 30 days after completion of travel. These reports shall 
include, at a minimum, the information required for the semiannual 
reports by the JFTR, Paragraph U7908 and JTR, Paragraph C4908.
    (d) Receipt and disposition of foreign gifts and decorations (5 
U.S.C. 7342). DoD employees may accept travel and travel-related 
expenses from a foreign government in accordance with 32 CFR part 95.
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, Apr. 24, 1995]



Sec. 84.12  DoD guidance.

    (a) Acceptance of incidental benefits. There are two basic 
principles DoD employees must consider in determining whether they may 
accept benefits offered incident to their official travel. See DoD 
travel rules (e.g., DoD Directive 4500.9 \17\).
---------------------------------------------------------------------------

    \17\ See footnote 4 to Sec. 84.7(d).
---------------------------------------------------------------------------

    (1) Federal Government property. Anything that does not fall within 
a gift exception or exclusion under 5 CFR part 2635, subpart B, or 5 CFR 
3601.101-3601.108, which is received by a DoD employee as a result of 
official travel, belongs to the Federal Government, regardless of the 
source of the funding.
    (i) Travel coupons, tickets, promotional items of more than nominal 
value, frequent flyer mileage credits, and most other benefits received 
by DoD employees from non-Federal sources (e.g., airlines, rental car 
companies, hotels) incident to their official travel belong to the 
Federal Government. They may not be used for personal purposes.
    (ii) If possible, such benefits will be turned over to the 
appropriate official. See JFTR, Paragraph U2010B, JTR, Paragraph C1200, 
41 CFR part 301 and 41 CFR 101-25.103.
    (2) Gifts from outside sources. Benefits offered to a DoD employee 
from a non-Federal source incident to official travel that cannot be 
used for official purposes must be treated as gifts to the DoD employee. 
DoD employees may not accept such gifts if acceptance would violate 5 
CFR part 2635, subpart B.
    (b) Examples of benefits considered Federal Government property--(1) 
Frequent flying mileage credits. Frequent flyer mileage credits earned 
as a result of official travel are the property of the Federal 
Government. They shall not be used except in connection with official 
travel. Credits are used in connection with official travel either by 
redeeming them for airline tickets which are used for official travel or 
by using them for travel upgrades while on official travel (e.g., 
airline seat upgrades, rental car upgrades, hotel upgrades). First 
consideration should be given to the former. When mileage credits for 
official and personal travel have been commingled in the same account, 
only those credits or points that clearly can be shown to have been 
derived from personal travel may be used for future personal travel. All 
other points in the account belong to the Federal Government.

[[Page 456]]

    (2) Other awards to users of travel services. Travel companies 
sometimes give away merchandise, or award points toward merchandise or 
other prizes, to users of their services. If the travel services used 
are paid for by the Federal Government, any resulting award belongs to 
the Federal Government (e.g., if a DoD employee renting a car for 
official business is offered either a calculator or points toward a 
larger prize, both would belong to the Federal Government).
    (c) Examples of benefits treated as gifts to an individual--(1) 
Travel upgrades. Travel upgrades are commonly offered for such travel 
accommodations as airline seats, rental cars, and hotel rooms. Some 
travel upgrades are given on the spot without any prearranged 
entitlement. Others are provided pursuant to some prearranged 
entitlement, such as a coupon. DoD employees on official travel may 
accept benefits such as an airline seat upgrade to first class, a luxury 
rental car in place of a compact, or a hotel room with a view instead of 
an interior room, for official use as long as there is no extra charge 
to the Federal Government to obtain the upgrade (see 5 CFR 2635.204(c)), 
subject to the following:
    (i) On the spot upgrades. DoD employees may accept an upgrade 
offered on the spot under circumstances in which such upgrades are 
generally available to the public or at least to all Federal Government 
employees or all military members. For example, a travel company may 
provide upgrades to remedy overbooking or overcrowding, due to a 
shortage of smaller cars, or simply for customer relation purposes; or 
upgrades may be offered to all military members in uniform. No upgrade 
may be accepted, however, if it is provided on the basis of the DoD 
employee's grade or position. Upgrades resulting from involuntary 
``bumping'' while on official travel may not be used for personal 
travel. See 5 CFR 2635.202(a)(2);
    (ii) Use of upgrade certificates (other than those obtained for 
frequent flyer miles). Some travel companies distribute coupons for free 
travel upgrades as a promotional offer. DoD employees may accept and use 
such coupons if they are realistically available to the general public 
(e.g., widely available coupons usable by bearer) or to all Federal 
Government employees or all military members (e.g., coupons available to 
any Federal Government employee for official travel). DoD employees may 
not use coupons provided on the basis of their grade or position.
    (2) ``Gold card'' and similar memberships. Certain airlines offer 
special benefits, including free upgrades, to members of their traveler 
incentive programs (e.g., Gold card, Key Club, etc.). Membership in 
these programs ordinarily is earned by accumulating a large number of 
travel miles during the current calendar year, or in some cases, 
memberships may be purchased. DoD employees who obtain eligibility under 
these circumstances (i.e., by purchasing a membership with their 
personal funds or by accumulating the necessary miles, even by official 
travel) may accept the membership and resulting benefits, including 
travel upgrades. If membership in the program is offered to DoD 
employees who have not met the usual requirements for membership, 
however, primarily because of the DoD employee's grade or position, 
neither the membership nor its benefits may be accepted.
    (3) Prizes in ``open'' and ``closed'' contest. When travel companies 
and related organizations offer prizes in a competition that is open to 
the general public, so that no one must perform official travel to win, 
a DoD employee may keep any prize he wins, even if he happened to enter 
the contest only because of official travel (e.g., a DoD employee flying 
on official business receives the winning entry blank in an airline's 
contest while on the flight, but individuals not using the airline will 
be given the entry blank on request). Some travel companies and related 
organizations offer prizes in connection with official travel. The prize 
usually is given as a result of a drawing or some kind of contest. If 
competition for a prize is limited to individuals using a certain kind 
of travel accommodation, which in the case of the DoD employee is paid 
for by the Federal Government, any prize won belongs to the Federal 
Government (e.g., an airline provides contest entry blanks only to 
passengers on its planes, and the DoD employee receives the winning

[[Page 457]]

entry blank while flying on official travel).
    (4) Incentives for voluntary surrender of flight reservations. DoD 
employees may keep payments or free tickets received from a carrier for 
voluntarily giving up a seat on an overbooked flight. DoD employees on 
official travel may not voluntarily surrender their seats if the 
resulting delay would interfere with the performance of duties. The 
delay may not increase the cost to the Federal Government. Therefore, 
travel vouchers should disclose the voluntary surrender and resulting 
delays and leave must be taken as appropriate.
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, Apr. 24, 1995]



Sec. 84.13  Procedures and responsibilities.

    (a) The travel-approving authority shall:
    (1) Approve or disapprove acceptance of travel benefits in kind or 
payments of travel expenses from non-Federal sources in accordance with 
Sec. 84.11 (c) and (d);
    (2) Acquire the concurrence of the DoD component DAEO or designee 
when approving travel benefits in accordance with the conflict of 
interest analysis required by 41 CFR 304-1.5;
    (3) Prepare and submit a report to the DoD component DAEO or 
designee reporting all travel benefits over $250 accepted in accordance 
with the authority granted under 31 U.S.C. 1353 as implemented in 
Sec. 84.11(b);
    (4) Prepare and submit a report to the DoD component DAEO or 
designee within 30 days after completion of travel during which travel 
benefits have been paid by non-Federal sources under 5 U.S.C. 4111. See 
Sec. 84.11(c)(3).
    (b) Each DoD component DAEO or designee shall:
    (1) Prepare and submit semiannual reports to OGE on acceptance of 
payments under 31 U.S.C. 1353 due May 31 and November 30 each year. See 
Sec. 84.11(b)(1)(v);
    (2) Retain reports from the travel-approving authority under 5 
U.S.C. 4111 for two years. See Sec. 84.11(c)(4);
    (3) Provide written concurrence for the approval of travel benefits 
in accordance with the conflict of interest analysis required by 41 CFR 
304-1.5.
    (c) Each traveling DoD employee shall:
    (1) Provide all necessary information to the travel approving 
authority for a semiannual report to the DoD component DAEO;
    (2) Turn in any merchandise, frequent flyer miles or other benefits 
as required under Sec. 84.12(a).



                    Subpart E--Conflicts of Interest



Sec. 84.14  Office of Government Ethics Regulation.

    (a) See 5 CFR part 2639, ``Interpretation of 18 U.S.C. 209''
    (b) See 5 CFR part 2640, ``Interpretation of 18 U.S.C. 208''



Sec. 84.15  Guidance on 18 U.S.C. 208.

    (a) Conflicts and appearance of conflicts under 18 U.S.C. 208. See 5 
CFR part 2635, subpart D and subpart E, OGE opinions (which are 
available for purchase from the U.S. Office of Government Ethics, 1201 
New York Avenue, NW., suite 500, Washington, DC 20005-3917), and 5 CFR 
3601.105 for provisions on conflicts of interest under 18 U.S.C. 208.
    (b) Applicability to enlistees. The provisions of 18 U.S.C. 208 and 
related provisions of OGE regulations do not apply to enlisted members. 
However, provisions similar to 18 U.S.C. 208 do apply to enlisted 
members as follows: [The following is a General Order] except as 
approved by the DoD component DAEO or designee, an enlisted member, 
including an enlisted special Government employee, shall not participate 
personally and substantially as part of his official DoD duties, in any 
particular matter in which he, his spouse, minor child, partner, entity 
in which he is serving as officer, director, trustee, partner or 
employee or any entity with which he is negotiating or has an 
arrangement concerning prospective employment, has a financial interest 
[end of General Order].
    (c) Waiver of 18 U.S.C. 208(a). Pursuant to 18 U.S.C. 208(b), 
application of 18 U.S.C. 208(a) may be waived.
    (1) The regulatory waivers for DoD under 18 U.S.C. 208(b)(2) have 
been preserved and are reprinted as follows (see 5 CFR 2635.402(d));

[[Page 458]]

    (i) For civilian DoD components, such waivers appear in Appendix B 
to this part;
    (ii) For the Department of the Army, such waivers appear in Appendix 
B to this part;
    (iii) For the Department of the Air Force, such waivers appear in 
Appendix B to this part;
    (iv) For the Department of the Navy, such waivers appear in Appendix 
B to this part.
    (2) Application of 18 U.S.C. 208(a) may be waived for individuals 
when a financial interest is not so substantial as to be likely to 
affect the integrity of the services that the Federal Government may 
expect from the DoD employee. Considerations in determining whether the 
interest is not so substantial as to be deemed likely to affect the 
integrity of the services that the Federal Government may expect from 
the DoD employee include:
    (i) The extent to which the DoD employee's exercise of authority and 
responsibility can affect his interest;
    (ii) The relative importance of the interest in the DoD employee's 
life or finances;
    (iii) The potential for harm to the Federal Government and to the 
DoD employee if the DoD employee's interests influence his decision-
making;
    (iv) How the situation would appear to an informed public;
    (v) The nature of the relationship between the DoD employee and the 
individual who has the interest concerned.
    (3) In order to pursue an individual waiver under 18 U.S.C. 
208(b)(1) the following steps are mandatory:
    (i) Before a waiver is requested, consideration should first be 
given to alternative resolutions, such as disqualification, divestiture, 
reassignment, or rearrangement of duties. Individual waivers are to be 
considered only when all alternatives have been exhausted. The 
supervisor should also consider, with the advice of the Ethics 
Counselor, whether a potential violation of 18 U.S.C. 208(a) exists. See 
paragraph (d) of this section. Even if the interests are insubstantial, 
consideration should be given to whether the particular matter will have 
a direct and predictable effect on the financial interest. See 5 CFR 
2635.402(b)(1);
    (ii) A request for a waiver shall be forwarded through the chain of 
command or supervision to the DoD component DAEO. The DoD component DAEO 
shall consult, if practicable, on the action with OGE;
    (iii) Pending the approval of the waiver, the DoD employee shall be 
disqualified from participation in the particular matter that will have 
an effect on the financial interest;
    (iv) The waiver request shall include the Ethics Counselor's 
findings of fact on the following:
    (A) The manner in which the financial interest was acquired;
    (B) The purpose behind the DoD employee's acquisition of the 
interest;
    (C) The dollar value of the interest;
    (D) The potential amount by which the DoD employee's official 
actions may affect the financial interest;
    (E) The degree to which the DoD employee has control over official 
actions which may affect the non-Federal entity;
    (F) The size of the non-Federal entity and the degree to which 
official actions may affect the non-Federal entity;
    (G) The value of the financial interest in relation to the DoD 
employee's net worth and income from other sources;
    (H) The degree to which the DoD employee has control over the 
financial interest, and whether it is capable of being divested.
    (4) By statute, authority to grant 18 U.S.C. 208(b)(1) waivers rests 
with the DoD official responsible for the DoD employee's appointment. By 
Executive Order 12674, that authority shall not be exercised without 
prior consultation, if practicable, with OGE. The DoD component DAEO 
shall consult with OGE regarding the waiver on behalf of the DoD 
official responsible for the DoD employee's appointment.
    (d) Resolution of conflicts. Resolution of actual or apparent 
conflicts of interest is the responsibility of the head of the DoD 
component command or organization. An Ethics Counselor should be 
consulted about alternatives for resolution. See subpart J of this part 
for enforcement information.

[[Page 459]]



Sec. 84.16  Other conflict of interest laws.

    (a) Bribery and graft. (1) [The following is a General Order] All 
DoD employees are prohibited from, directly or indirectly, giving, 
offering, promising, demanding, seeking, receiving, accepting, or 
agreeing to receive anything of value to influence any official act, to 
influence commission of fraud on the United States, to induce committing 
or omitting any act in violation of a lawful duty, or to influence 
testimony given before an individual or non-Federal entity authorized to 
hear evidence or take testimony [end of General Order]. See 18 U.S.C. 
201(b).
    (2) [The following is a General Order] DoD employees are also 
prohibited, except as provided by law for the proper discharge of 
official duties, from, directly or indirectly, giving, offering, 
promising, demanding, seeking, receiving, accepting, or agreeing to 
accept anything of value for or because of any official act performed or 
to be performed, or for or because of any testimony given or to be given 
before an individual or non-Federal entity authorized to hear evidence 
or take testimony [end of General Order]. See 18 U.S.C. 201(c).
    (3) These prohibitions do not apply to the payment or receipt of 
witness fees authorized by law, certain travel and subsistence expenses 
to appear as a witness and value of time lost in attendance at a trial, 
hearing, or proceeding. Other prohibitions may apply. See 18 U.S.C. 
201(d); 5 U.S.C. 5515 and 5751 and paragraph 66 of part IV, MCM, 1984 
(10 U.S.C. 801-940).
    (b) Compensation related to matters pending Government decision. OGE 
interpretation of prohibitions under 18 U.S.C. 203 appear in 5 CFR 
2635.801(d)(3). These prohibitions do not apply to enlisted members. A 
DoD employee whose salary is not tied to the profitability of the non-
Federal entity's Federal Government contracts does not violate this 
statute. See OGE opinion 86x9 \18\ (informal). This statute prohibits 
receiving compensation for any representation, including those where 
there is no intent to be corrupted or to provide preferential treatment. 
Representations can be either oral or written.
---------------------------------------------------------------------------

    \18\ Copies are available from Office of Government Ethics, 1201 New 
York Avenue NW., Suite 500, Washington, DC 20005-3917.
---------------------------------------------------------------------------

    (1) The prohibition does not apply to a DoD employee's 
representation of himself, but this exception does not extend to the 
representation of a distinct, legal, non-Federal entity as a 
corporation, a partnership, or even a sole proprietorship. 18 U.S.C. 
203(a)(2) prohibits an offer or payment of compensation, the 
solicitation or receipt of which is otherwise barred.
    (2) The prohibitions apply to special Government employees but only 
in relation to a particular matter involving a specific party or parties 
in which the special Government employee participated personally and 
substantially or, absent such participation, if he served more than a 
total of 60 days in the preceding 365 days, in relation to any 
particular matter pending in the DoD agency.
    (3) 18 U.S.C. 203 does not prohibit giving testimony under oath or 
making statements required to be made under penalty of perjury.
    (4) 18 U.S.C. 203 does not prohibit representation, with or without 
compensation, of one's parents, spouse, child, or any person or estate 
the DoD employee serves as administrator, guardian or other personal 
fiduciary. This exemption is permitted only if approved by the DoD 
official responsible for appointing the DoD employee to his DoD 
position. The exemption may not be extended to the DoD employee's 
representation of any such person in matters in which the DoD employee 
has officially participated personally and substantially or in matters 
which, even absent such participation, are the subject of his official 
responsibility.
    (5) The head of a department or agency may authorize a special 
Government employee to represent his regular employer or other outside 
organization in the performance of work under a Federal Government grant 
or contract if the department or agency head certifies and publishes the 
certification in the Federal Register that the national interest 
requires such representation.
    (c) Contracts with DoD employees. Contracts for the procurement of 
goods

[[Page 460]]

and services between the Federal Government and its employees are 
prohibited unless the needs of the Federal Government cannot otherwise 
be met. See 48 CFR 3.601 and 3.602.
    (d) Representation of others--(1) Prohibition under 18 U.S.C. 205. 
18 U.S.C. 205 prohibits DoD employees, other than enlisted members, 
whether or not they are employed for compensation, from personally 
acting as an agent or attorney for anyone else before a department, 
agency, or court in connection with any covered matter in which the 
United States is a party or has a direct and substantial interest or 
from prosecuting any claim against the Federal Government or receiving 
any gratuity or interest in such claim for assistance in prosecuting the 
claim. Covered matter means any judicial or other proceeding, 
application, request for a ruling or other determination, contract, 
claim, controversy, investigation, charge, accusation, arrest, or other 
particular matter.
    (2) Exceptions. The following are excluded from the scope of 18 
U.S.C. 205:
    (i) Giving testimony under oath or making statements required to be 
made under penalty of perjury or representing another person, with or 
without compensation, in a disciplinary, loyalty, or other personnel 
administration proceeding;
    (ii) Representing, with or without compensation, one's parents, 
spouse, child, or a person estate the DoD employee serves as a 
fiduciary, but only if approved by the DoD official responsible for 
appointing the DoD employee to this DoD position. This exception does 
not apply to matters in which the DoD employee has participated 
personally and substantially or which, in the absence of such 
participation, are the subject of his official DoD responsibility;
    (iii) The head of a department or agency may allow a special 
Governmental employee to represent his regular employer or other outside 
organization in the performance of work under a Federal Government grant 
or contract if the department or agency head certifies and publishes the 
certification in the Federal Register that the national interest 
requires such representation;
    (iv) For special Government employees, the prohibitions apply only 
to covered matters in which they participated personally and 
substantially as a special Government employee. Absent such 
participation, the prohibitions apply only if he served more than a 
total of 60 days during the preceding 365 days and the covered matter 
was pending in the DoD agency during that period.
    (e) Compensation from other sources. (1) The provisions of 18 U.S.C. 
209 and related provisions of OGE regulations do not apply to enlisted 
members. However, provisions similar to 18 U.S.C. 209 do apply to 
enlisted members as follows: [The following is a General Order] an 
enlisted member, except an enlisted special Government employee, shall 
not receive any salary or supplementation of his Federal Government 
salary, from any entity other than the Federal Government or as may be 
contributed out of the treasury of any State, county, or municipality, 
for his services to the Federal Government [end of General Order].
    (2) 18 U.S.C. 209 prohibits DoD employees from receiving pay or 
allowances or supplements of pay or benefits from any source other than 
the United States for the performance of official service or duties 
unless specifically authorized by law. Note that a task or job that is 
performed outside normal working hours does not necessarily allow 
acceptance of payment for performing it. If the undertaking is part of 
one's official duties, pay for its performance may not be accepted from 
any source other than the United States regardless of when it was 
performed.
    (3) A DoD employee may continue to participate in bona fide pension, 
retirement, insurance, bonus, or other employee welfare or benefit plan 
maintained by his former employer. See 18 U.S.C. 209(b).
    (4) Reserve military officers and certain temporarily commissioned 
military officers who are ordered to active duty may continue to receive 
compensation from individuals who furnished compensation to them prior 
to being ordered to active duty. See 10 U.S.C. 1033 and 50 U.S.C. App. 
454(f).

[[Page 461]]

    (f) Additional pay or allowances. [The following is a General Order] 
DoD employees may not receive additional pay or allowances for 
disbursement of public money or for the performance of any other service 
or duty unless specifically authorized by law. See 5 U.S.C. 5536 [end of 
General Order].
    (1) 5 U.S.C. 5536 precludes extra pay from the Federal Government 
for the performance of official duties. Subject to certain limitations, 
civilian DoD employees may hold two distinctly different Federal 
Government positions and receive the salaries of both if the duties of 
each are performed. Absent specific authority, however, military member 
may not do so because any arrangement by a military member for rendering 
services to the Federal Government in another position is incompatible 
with the military member's actual or potential military duties. That a 
military member may have leisure hours during which no official duty is 
performed does not alter the result. See 52 Comp. Gen. 471 and 22 Comp. 
Gen. 127, 149.
    (2) 5 U.S.C. 5536 applies to enlisted members and precludes enlisted 
members from supplementing their official salaries from outside sources 
for performing their official duties.
    (g) Interference with military duties. Military officers on active 
duty (except while on terminal leave) may not accept employment if it 
requires separation from their organization, branch, or unit, or 
interferes with the performance of military duties. See 10 U.S.C. 
973(a).
    (h) Civil office prohibition. Regular military officers on the 
active duty list and retired regular military officers on active duty 
from more than 180 days may not hold civil office, unless expressly 
authorized by law. See 10 U.S.C. 973(b).
    (i) Assignment of reserves for training. (1) Personnel who assign 
reserves for training shall not assign them to duties in which they will 
obtain information that they or their private employers may use to gain 
unfair advantage over competitors. Reservists must disclose to superiors 
and assignment personnel information necessary to ensure that no 
conflict exists between their duty assignment and their private 
interests.
    (2) Commanders, or their designees, shall screen Reservists 
performing training to ensure that no actual or apparent conflict exists 
between their private interests and their duty assignment. While 
Reservists have an affirmative obligation under this rule to disclose 
material facts in this regard, receiving commands cannot assume 
compliance and shall independently screen incoming personnel to avoid 
conflicts of interests.
    (j) Commercial dealings involving DoD employees. [The following is a 
General Order] A DoD employee shall not knowingly solicit or make 
solicited sales to DoD personnel who are junior in rank, grade or 
position, or to the family members of such personnel, on or off duty. In 
the absence of coercion or intimidation, this does not prohibit the sale 
or lease of a DoD employee's non-commercial personal or real property or 
commercial sales solicited and made in a retail establishment during 
off-duty employment. The posting of an advertisement in accordance with 
Federal Government building management policies does not constitute 
solicitation for purposes of this section [end of General Order].
    (1) [The following is a General Order] This prohibition includes the 
solicited sale of insurance, stocks, mutual funds, real estate, 
cosmetics, household supplies, vitamins, and other goods or services 
[end of General Order].
    (2) [The following is a General Order] Both the act of soliciting 
and the act of selling as a result of soliciting are prohibited. In both 
cases, however, a solicitation is necessary for a violation to occur. 
While the standard prohibits a senior from making a solicited sale to a 
junior or to the junior's family, sales made because a junior approaches 
the senior and requests the sale to be made are not prohibited, absent 
coercion or intimidation by the senior [end of General Order].
    (3) Personal commercial solicitations by the spouse or other 
household member of a DoD employee to those who are junior in rank, 
grade, or position to the

[[Page 462]]

DoD employee, may give rise to the appearance that the DoD employee 
himself is using his public office for personal gain. When a spouse or 
household member of a DoD employee engages in such activity, the 
supervisor of the DoD employee must consult an Ethics Counselor, and 
counsel the DoD employee that such activity should be avoided where it 
may:
    (i) Cause actual or perceived partiality or unfairness;
    (ii) Involve the actual or apparent use of rank or position for 
personal gain; or
    (iii) Otherwise undermine discipline, morale, or authority.
    (k) Related rules. (1) There is a prohibition on holding conflicting 
financial interests. See 5 CFR 2635.403, 18 U.S.C. 208, and 5 CFR part 
2640.
    (2) There are requirements regarding seeking outside employment. See 
5 CFR 2635.601-2635.606 and subpart H of this part.
    (3) There is a prohibition on engaging in outside employment or 
activities that conflict with official duties. See 5 CFR 2635.802.
    (4) There are limitations on certain outside activities such as 
receipt of outside earned income by certain DoD Presidential appointees 
or non-career DoD employees, service as an expert witness, participation 
in professional associations, teaching, writing, speaking, or 
fundraising. See 5 CFR 2635.804-2635.808.
    (5) There is a prohibition on the receipt of honoraria. See 5 CFR 
part 2636.
    (6) There are prohibitions on the misuse of official position such 
as improper endorsements or improper use of non-public information. See 
5 CFR 2635.701-2635.705.
    (7) There are prohibitions on certain post-Government service 
employment. See subpart I of this part.
[59 FR 13214, Mar. 21, 1994. Redesignated and amended at 60 FR 20030, 
Apr. 24, 1995]



                     Subpart F--Political Activities



Sec. 84.17  Office of Personnel Management regulation.

    See 5 CFR part 734, ``Political Activities of Federal Employees.''
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, Apr. 24, 1995]



Sec. 84.18  Political activities of civilian DoD employees.

    (a) Policy.
    (1) The policy governing the political activities of civilian DoD 
employees is derived from the Hatch Act Amendments, 5 U.S.C. 7321 
through 7325. Guidance on the application of the Hatch Act Amendments is 
provided by the Hatch Act Hotline at the Office of Special Counsel at 1-
(800) 854-2824.
    (2) Primary enforcement responsibility under the Hatch Act 
Amendments lies with the Office of Special Counsel under 5 U.S.C. 
1216(c); however, DoD Components have responsibility to investigate 
allegations of prohibited political activity by excepted service 
employees of the DoD Component.
    (3) It is DoD policy to encourage civilian DoD employees and members 
of the Armed Forces to carry out the obligations of citizenship to the 
maximum extent possible consistent with the restrictions imposed by law 
and by this part.
    (b) Permissible activities. Subject to paragraphs (b) and (c) of 
this section, civilian DoD employees may, in their personal capacities:
    (1) Be candidates for public office in nonpartisan elections;
    (2) Register and vote as they choose;
    (3) Assist in voter registration drives;
    (4) Express opinions about candidates and issues;
    (5) Contribute money to political organizations;
    (6) Attend political fundraising functions;
    (7) Attend and be active at political rallies and meetings;
    (8) Join and be an active member of a political party or club;

[[Page 463]]

    (9) Sign nominating petitions;
    (10) Campaign for or against referendum questions, constitutional 
amendments, or municipal ordinances;
    (11) Campaign for or against candidates in partisan elections (see 
paragraph (b)(3) of this section);
    (12) Make campaign speeches for candidates in partisan elections 
(see paragraph (b)(3) of this section);
    (13) Distribute campaign literature in partisan elections (see 
paragraph (b)(3) of this section);
    (14) Hold office in political clubs or parties (see paragraph (b)(3) 
of this section).
    (c) Limitations.
    (1) Military members are not covered by the Hatch Act Amendments, 5 
U.S.C. 7321 through 7327. Political activities of Military members are 
covered in Sec. 84.19.
    (2) Notwithstanding paragraph (a) of this section, as a matter of 
longstanding DoD policy, DoD employees who are appointed by the 
President, by and with the advice and consent of the Senate (e.g. the 
Secretary of Defense, the Secretaries of the Military Departments, 
etc.), and DoD employees who are appointed by the Secretary of Defense 
to non-career Senior Executive Service positions may not engage in 
activities that could be interpreted as associating the DoD with any 
partisan political cause or issue.
    (3) The following DoD employees (except for Presidential appointees 
who are confirmed by and with the consent of the Senate) are prohibited 
from engaging in the activities described in paragraphs (a)(11) through 
(a)(14) of this section:
    (i) Employees of the National Security Agency;
    (ii) Employees of the Defense Intelligence Agency;
    (iii) Career members of the senior executive service;
    (iv) Administrative Law Judges; and
    (v) Contract appeals board members.
    (d) Prohibited activities. Civilian DoD employees may not:
    (1) Use official authority or influence for the purpose of 
interfering with or affecting the result of an election;
    (2) Collect political contributions unless both the collector and 
the donor are members of the same Federal labor organization or employee 
organization and the donor is not a subordinate;
    (3) Knowingly solicit or discourage the political activity of any 
person who has business with DoD;
    (4) Engage in political activity while on duty;
    (5) Engage in political activity while in any Federal workplace;
    (6) Engage in political activity while wearing an official uniform 
or displaying official insignia identifying the office or position of 
the DoD employee;
    (7) Engage in political activity while using a Government owned or 
leased vehicle;
    (8) Solicit political contributions from the general public;
    (9) Be a candidate for public office in partisan elections;
    (10) Wear political buttons on duty;
    (11) Contribute to the political campaign of another Federal 
Government employee who is in the DoD employee's chain of command or 
supervision or who is the employing authority, including the political 
campaign to re-elect the President or Vice President.
    (e) DoD employees residing in designated localities. Notwithstanding 
the prohibitions of paragraph (c) of this section, a DoD employee 
(except those DoD employees listed in paragraph (b)(3) of this section) 
who resides in a municipality or political subdivision, either in the 
immediate vicinity of the District of Columbia or in which the majority 
of voters are employed by the Federal Government, as designated by OPM 
under 5 CFR 733.102(d) may:
    (1) Run as an independent candidate for election to a partisan 
political office in an election for local office of the municipality or 
political subdivision provided the candidacy for, and service in, the 
partisan political office shall not result in neglect of, or 
interference with, the performance of the duties of the DoD employee or 
create an actual or apparent conflict of interest; and
    (2) Accept or receive political contributions in connection with a 
local election of the municipality or political subdivision provided the 
DoD employee does not solicit political contributions from the general 
public.
    (f) Political recommendations.
    (1) The restrictions of 5 U.S.C. 3303 apply to all personnel actions 
described

[[Page 464]]

in 5 U.S.C. 2302(a)(2)(A) (i) through (x) for individuals in or 
applicants to the following DoD positions:
    (i) Competitive service employees;
    (ii) Career appointees in the Senior Executive Service; and
    (iii) Excepted service employees other than one who is appointed by 
the President or whose position has been determined to be of 
confidential, policy-determining, policy-making, or policy-advocating 
character.
    (2) Each personnel action with respect to a DoD employee or 
applicant, as described in paragraph (c)(1) of this section, shall be 
taken without regard to any recommendation or statement, oral or 
written, made by the following types of individuals:
    (i) Members of Congress or Congressional employees;
    (ii) Elected officials of any State (including the District of 
Columbia and the Commonwealth of Puerto Rico), county, city, or other 
subdivision thereof;
    (iii) Officials of political parties; or
    (iv) Other individuals or organizations making such recommendations 
or statements on the basis of the party affiliations of the DoD employee 
or applicant recommended.
    (3) DoD employees may solicit, accept, and consider any statement 
with respect to a DoD employee or applicant described in paragraph 
(c)(1) of this section if the statement meets one of the following 
conditions:
    (i) It is pursuant to a request or requirement of the DoD Component 
and consists solely of an evaluation of the work performance, ability, 
aptitude, and general qualifications of the DoD employee or applicant;
    (ii) It relates solely to the character and residence of the DoD 
employee or applicant;
    (iii) It is furnished pursuant to a request made by an authorized 
representative of the Government of the United States solely in order to 
determine whether the DoD employee or applicant meets suitability or 
security standards;
    (iv) It is furnished by a former employer of the DoD employee or 
applicant pursuant to a request of an agency, and consists solely of an 
evaluation of the work performance, ability, aptitude, and general 
qualifications of such DoD employee or applicant during employment with 
such former employer; or
    (v) It is furnished pursuant to a provision of law or regulation 
authorizing consideration of such statement with respect to a specific 
position or category of positions.
    (4) DoD Component Heads are required by 5 CFR 300.801 to ensure that 
DoD employees and applicants described in paragraph (c)(1) of this 
section are notified of the provisions of 5 U.S.C. 3303.
[60 FR 20030, Apr. 24, 1995]



Sec. 84.19  Political activities of military members.

    See DoD Directive 1344.10 \20\, ``Political Activities by Members of 
the Armed Forces on Active Duty,'' June 15, 1990.
---------------------------------------------------------------------------

    \20\ See footnote 4 to Sec. 84.7(d).
---------------------------------------------------------------------------

[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, Apr. 24, 1995]



             Subpart G--Financial and Employment Disclosure



Sec. 84.20  Office of Government Ethics regulation.

    See 5 CFR part 2634, ``Financial Disclosures, Qualified Trusts, and 
Certificates of Divestiture for Executive Branch Employees''.



Sec. 84.21  Public financial disclosure report (SF-278).

    (a) Individuals required to file--(1) Covered positions. For 
purposes of this section, the following individuals are in ``covered 
positions'' and are required by the Ethics in Government Act of 1978, 
Public Law 95-521 (5 U.S.C. App.) to file an SF 278, with their DoD 
component DAEO or designee as set out in paragraph (f) of this section:
    (i) Civilian Presidential appointees;
    (ii) Regular and reserve military officers whose pay grade is 0-7 or 
above;
    (iii) Members of the Senior Executive Service;
    (iv) Other civilian DoD employees, including special Government 
employees, whose positions are classified above GS/GM-15 prescribed by 5 
U.S.C.

[[Page 465]]

5332 or civilian DoD employees under other pay systemswhose rate of 
basic pay is fixed at or above 120% of the minimum rate of basic pay for 
a GS/GM-15;
    (v) DoD employees in the excepted service in positions that are of a 
confidential or policy-making character unless they have been excluded 
by the Director, OGE. See paragraph (a)(4) of this section;
    (vi) Individuals serving by appointment under the Intergovernmental 
Personnel Act, from State or local governments, institutions of higher 
education or other eligible organizations. See 5 U.S.C. 3371-3376;
    (vii) Civilian individuals who are detailed to positions described 
in paragraphs (a)(1)(iii) through (a)(1)(v) of this section;
    (viii) DoD component DAEOs.
    (2) Waiver. An individual otherwise required to file an SF 278 but 
who now is expected to perform the duties of a covered position for less 
than 130 days in a calendar year, may request a waiver of any or all 
reporting requirements from the Director, OGE, in accordance with 5 CFR 
part 2634.
    (3) Exception. An individual who is nominated to or assumes a 
covered position is not required to file an SF 278 if the Secretary 
concerned or the DoD component DAEO determines that the individual is 
not reasonably expected to perform the duties of the position for more 
than 60 days in a calendar year. If such individual performs the duties 
of the position for more than 60 days in a calendar year, an SF 278 
shall be filed within 15 days after the 61st day of duty.
    (4) Exclusion. The Director, OGE, may exclude an individual who is 
in a covered position under paragraph (a)(1)(v) of this section from the 
requirement to file an SF 278 in accordance with 5 CFR 2634.203.
    (b) Information on covered positions. The directors of DoD component 
personnel offices are responsible for providing the following 
information to their DoD component DAEOs or designees:
    (1) The name, position, grade, organization and entrance-on duty or 
termination date of each individual assigned to the DoD component who is 
required to file a new entrant or termination SF 278 immediately upon 
the appointment of the individual to a position requiring filing, or 
upon receipt of an SF 52, ``Request for Personnel Action,'' August 1988, 
requesting approval of the retirement, resignation, or removal of the 
individual from such a position;
    (2) By January 10 of each year, the name, position, grade, and 
organization of each individual assigned to the DoD component who is 
required to file an annual SF 278.
    (c) Notification of requirement to file. Each DoD component DAEO or 
designee shall provide appropriate notices and instructions to all 
reporting individuals to ensure the timely preparation of the reports 
and submission to supervisors and Ethics Counselors for review and 
filing.
    (d) Time of filing--(1) Nomination reports. (i) Any time after 
public announcement but within five days after transmittal by the 
President to the Senate of the nomination of an individual to a civilian 
DoD position that requires the advice and consent of the Senate, the DoD 
component DAEO shall ensure the nominee's SF 278 is filed with the 
appropriate authorities.
    (ii) The report shall contain the information prescribed in the 
``Instructions for Completing SF 278'' attached to the SF 278. These 
reports shall be certified by the DoD component DAEO, and processed as 
prescribed by OGE regulation, 5 CFR part 2634.
    (iii) Unless otherwise required by the Senate, nomination reports 
are not required of individuals nominated to positions as military 
officers. Such individuals must file new entrant reports as prescribed 
in the following.
    (2) New entrant reports. (i) Within 30 days of assuming a covered 
position, a reporting individual shall submit an SF 278.
    (ii) The report shall contain the information prescribed for new 
entrant reports in the ``Instructions for Completing SF 278'' attached 
to the SF 278.
    (iii) No new entrant report is necessary if the reporting individual 
has, within 30 days prior to assuming a new position, left another 
covered position for which the reporting individual filed an SF 278.

[[Page 466]]

    (iv) Notwithstanding paragraph (a)(3) of this section, reserve 
military officers shall file a new entrant report within 30 days of 
promotion to grade O-7, regardless of whether they are expected to 
perform active duty for more than 60 days.
    (3) Annual reports. Any time after January 1 but not later than May 
15, a reporting individual who served in a covered position for more 
than 60 days during the preceding calendar year shall file an annual SF 
278. For reserve military officers, only service pursuant to orders 
issued under title 10, United States Code, is counted.
    (4) Termination reports. Not sooner than 15 days before but not 
later than 30 days after termination from a covered position, a 
reporting individual shall submit an SF 278. A termination report is not 
required of a reporting individual who, within 30 days of such 
termination, assumes another covered position. A termination report is 
not required of a reserve military officer in the grade of O-7 or above 
who did not serve more than 60 days on active duty during the calendar 
year in which the military officer is transferred to the Retired 
reserve.
    (5) Extension of filing deadlines. The DoD component DAEO, in the 
case of civilian Presidential appointees, and the DoD component DAEO or 
designee in other cases, may grant, for good cause, a filing extension 
up to 45 days. All requests for extensions shall be provided, in 
writing, by the reporting individual to the DoD component DAEO or 
designee. The request shall contain a clear statement of the reasons for 
the request and shall be submitted in advance of the original filing 
deadline. Requests for additional time beyond the initial 45 day 
extension shall be forwarded by the appropriate DoD component DAEO or 
designee with his comments to the Director, OGE, who may grant an 
additional 45 days extension. The reporting individual shall notify his 
supervisor of any extension granted.
    (6) Combined annual and termination reports. Reporting individuals 
who anticipate terminating their DoD employment before June 30 may 
request an extension from the appropriate DoD component DAEO or designee 
of up to 45 days in order to file one consolidated annual and 
termination report. Combined annual and termination reports must be 
filed within 30 days after termination of employment or service but not 
later than July 15.
    (7) Late filing fee. (i) Any reporting individual who is required to 
file an SF 278 and does so more than 30 days after the date the report 
is required to be filed, or, if an extension is granted, more than 30 
days after the last day of the filing extension period, shall be subject 
to a $200 late filing fee. See 5 CFR part 2634. Such fee shall be 
collected by the DoD component DAEO or designee for deposit with the 
U.S. Treasury.
    (ii) If the reporting individual fails to remit the $200 fee within 
90 days, the fee shall be subject to DoD component debt collection 
procedures.
    (iii) If extraordinary circumstances existed that caused the late 
submission of the report, a request for a waiver of the fee may be 
submitted by the reporting individual with supporting documentation to 
the DoD component DAEO or designee. The DoD component DAEO or designee 
shall review the request and forward it with a recommendation for 
approval or denial to OGE. OGE will grant or deny the waiver.
    (e) Content of report. (1) Instructions for completing the SF 278 
are attached to the form. See detailed instructions at 5 CFR 2634.301 
through 2634.408, for additional guidance or contact the local Ethics 
Counselor.
    (2) A complete report is required even if no changes have occurred 
since the last submission.
    (3) Termination reports shall contain information covering the 
preceding calendar year, if an annual report was not filed for that 
year, and that portion of the present calendar year up to the date of 
termination from the covered position.
    (4) A reporting individual shall request required information known 
only to another person to be submitted by that person to appropriate 
reviewing authorities. Such a submission may be made with a request for 
confidentiality which shall be honored by DoD reviewing authorities when 
appropriate even

[[Page 467]]

if it limits disclosure to the reporting individual.
    (f) Chain of submission. A reporting individual shall submit his SF 
278 as follows:
    (1) A civilian Presidential appointee shall file directly with his 
DoD component DAEO or designee;
    (2) Any other reporting individual shall submit his SF 278 through 
his supervisor and through his Ethics Counselor to the DoD component 
DAEO or designee. In some cases, the Ethics Counselor and the DoD 
component DAEO or designee are the same person;
    (i) A military officer serving in a DoD component or in the Central 
Intelligence agency shall submit his report through his supervisor 
directly with the DAEOs or designees of those agencies;
    (ii) A military officer serving in OSD or for the Chairman of the 
Joint Chiefs of Staff and Joint Staff, shall submit his report, through 
his supervisor, to the GC, DoD, as the DoD component DAEO;
    (iii) A military officer serving in a joint, Unified, Specified or 
Combined Commands, other than a Commander in Chief, shall file through 
his supervisor directly with his DoD component DAEO or designee. A 
Commander in Chief of such command shall file with the Legal Advisor to 
the Chairman of the Joint Chiefs of Staff.
    (3) A reporting individual who has more than one immediate 
supervisor shall submit his report through both supervisors prior to 
submitting it to the DoD component DAEO or designee. Such a reporting 
individual may submit a copy of his report to one supervisor and the 
original to the other in order to expedite processing;
    (4) Reporting individuals on detail to other Executive or 
Legislative Branch agencies shall follow the filing requirements and 
procedures of those agencies.
    (g) Review--(1) Initial supervisor review. Upon receipt of an SF 
278, the supervisor of the reporting individual shall review the report 
to determine if any of the reported financial interests reveal a 
conflict of interest with the reporting individual's current and future 
official duties. See 5 CFR 2634.605(b). The supervisor shall supplement 
the report with any required information or data, including comments on 
the existence of actual or apparent conflicts of interest, and forward 
the report with all attachments to the Ethics Counselor. If any review 
reveals a conflict or apparent conflict, the supervisor shall ensure 
that the matter is resolved in accordance with paragraph (g)(2)(vii) of 
this section.
    (2) Ethics Counselor review. (i) When applicable, the Ethics 
Counselor shall review each report to determine that:
    (A) Each item is completed; and
    (B) No interest or position disclosed on the report violates or 
appears to violate;
    (1) Any applicable provision of Chapter 11 of title 18, United 
States Code;
    (2) The Ethics in Government Act of 1978, Public Law 95-521 (5 
U.S.C. App.), and implementing regulations;
    (3) Executive Order 12674 and implementing regulations; or
    (4) Any other related laws or regulations applicable to DoD 
employees.
    (ii) The reports are to be taken at ``face value'' unless there is a 
patent omission or ambiguity or the official has independent knowledge 
of matters outside the report. However, to ensure that there are no 
omissions, the previous report of each reporting individual, if 
applicable, shall be compared to the current submission.
    (iii) If the Ethics Counselor believes that additional information 
is required, the reporting individual shall be notified of the 
additional information required and the date by which it must be 
submitted. The reporting individual shall submit the required 
information directly to the Ethics Counselor.
    (A) When the Ethics Counselor amends or revises a report based on 
additional information obtained from the reporting individual, he shall 
initial the amendment or revision and make a note of the source of the 
information in the comment section of the report. For example, if the 
Ethics Counselor adds to a report that a certain fund is an excepted 
investment fund based on a telephone conversation with the reporting 
individual, he shall number and initial the change on Schedule A and add 
a notation in the comment section of the report, such as ``1. per 
telecon with Mr.

[[Page 468]]

Doe on June 16, 1992'' and initial the comment.
    (B) When a substantial amount of information is missing from the 
report, it shall be returned to the supervisor for evaluation in 
accordance with the standards set forth in paragraph (g)(2)(i) of this 
section, with instructions to return it to the Ethics Counselor with any 
additional comments or supplementary information.
    (iv) If the Ethics Counselor agrees with the supervisor's evaluation 
that no item violates, or appears to violate, applicable laws or 
regulations, then:
    (A) The Ethics Counselor shall annotate the report or attach an 
endorsement stating that no conflicts of interest under applicable laws 
or regulations exist, and forward it to the appropriate DoD Component 
DAEO or designee; and
    (B) If there are no financial interests in non-Federal entities 
doing or seeking business with DoD reported on the SF 278, the Ethics 
Counselor may issue a memorandum with the SF 278 to the appropriate DoD 
Component DAEO or designee.
    (v) If the Ethics Counselor disagrees with the supervisor's 
evaluation, and concludes that the report does not comply with 
applicable laws and regulations, he shall do the following:
    (A) Notify the reporting individual in writing of the preliminary 
determination;
    (B) Afford the reporting individual a reasonable opportunity for an 
oral or written response; and
    (C) Determine, after considering any response, whether or not the 
reporting individual is in compliance with applicable laws and 
regulations. If the Ethics Counselor concludes that the report does 
fulfill the requirements, he shall annotate the report or attach an 
endorsement stating that no conflicts of interest under applicable laws 
or regulations exist and dispose of the report in accordance with 
paragraph (g)(2)(iv) of this section. If the Ethics Counselor determines 
that it does not, he shall:
    (1) Notify the reporting individual of the conclusion;
    (2) Afford the reporting individual an opportunity for personal 
consultation, if practicable;
    (3) Determine what remedial action should be taken to bring the 
reporting individual into compliance;
    (4) Notify the reporting individual, in writing, of the remedial 
action required, indicating a date by which that action must be taken; 
and
    (5) Ensure that the supervisor of the reporting individual is 
notified of the required remedial action and date by which that action 
must be taken.
    (vi) Except in unusual situations, which must be documented fully to 
the satisfaction of the Ethics Counselor, remedial action shall be 
completed within three months from the date the reporting individual was 
notified that the action is required.
    (vii) Remedial steps, in accordance with 5 CFR 2634.605-2634.607, 
may include the following measures:
    (A) Divestiture:
    (1) Any reporting individual or the spouse, minor or dependent child 
of a reporting individual, may be issued a Certificate of Divestiture by 
the Director, OGE, upon a determination that such divestiture is 
reasonably necessary to comply with 18 U.S.C. 208, or any other Federal 
Government conflict of interest statute, regulation, rule, or Executive 
Order, or pursuant to the request of the Senate as a condition of 
confirmation;
    (2) If obtained before the sale, the Certificate of Divestiture 
allows for the non-recognition of capital gains that result upon the 
sale of property to comply with conflict of interest requirements if the 
property is rolled over into property permitted by OGE. See 5 CFR 
2634.1001;
    (3) The following items must be submitted to the Director, OGE, by 
the DoD component DAEO:
    (i) A copy of the written request from the reporting individual to 
the DoD component DAEO to seek certification in the case of the property 
to be divested;
    (ii) A copy of the latest SF 278 or SF 450;
    (iii) A detailed description of the specific property for which 
divestiture is contemplated;
    (iv) A complete statement by the DoD component DAEO or designee of 
the facts and circumstances relevant to the requirement for divestiture 
and an

[[Page 469]]

explanation of the rules that apply to the requirement for divestiture;
    (v) An analysis and recommendation as to whether the certificate 
should be granted.
    (4) The Director, OGE, will issue a Certificate of Divestiture when 
divestiture is a condition for Senate confirmation or is reasonably 
necessary to comply with conflict of interest requirements.
    (B) Disqualification in accordance with 5 CFR 3601.105;
    (C) Limitation of duties;
    (D) Transfer or reassignment;
    (E) Resignation;
    (F) Exemption under 18 U.S.C. 208 (b)(1) or (b)(3);
    (G) Establishment of a qualified blind trust.
    (viii) When the Ethics Counselor determines that a reporting 
individual has complied fully with the remedial measures, a notation to 
that effect shall be made in the comment section of the SF 278. The 
Ethics Counselor shall then follow the procedures set forth in paragraph 
(g)(2)(iv) of this section.
    (ix) If steps ensuring compliance with applicable laws and 
regulations are not taken by the date established, the Ethics Counselor 
shall report the matter to the agency designee for appropriate action, 
with an information copy to the DoD component DAEO.
    (3) DoD component DAEO review. (i) The DoD component DAEO or 
designee shall review the report in accordance with the standards set 
forth in paragraphs (g)(2)(i) and (g)(2)(ii) of this section.
    (ii) Additional information required by the DoD component DAEO or 
designee shall be collected in accordance with paragraph (g)(2)(ii) of 
this section.
    (iii) The DoD component DAEO or designee shall notify the reporting 
individual of any necessary remedial action in accordance with 
procedures set forth in paragraph (g)(2)(v) of this section.
    (iv) When the DoD component DAEO or designee determines that no item 
violates, or appears to violate, any applicable law or regulation, or 
when the DoD component DAEO or designee determines that a reporting 
individual has complied fully with the remedial measures, the DoD 
component DAEO or designee shall sign and date the report.
    (v) If steps ensuring compliance with applicable laws or regulations 
are not taken by the date established, the DoD component DAEO or 
designee shall report the matter to the Head of the DoD component for 
remedial action, with an information copy to the Director, OGE.
    (vi) If the DoD component or designee concludes that no item 
violates, or appears to violate, any applicable law or regulation, but 
that there are financial interests in non-Federal entities doing or 
seeking business with DoD, then the DoD component DAEO or designee may 
issue a memorandum of caution to the reporting individual.
    (vii) All reports shall be reviewed within 60 days after the date of 
filing. The DoD component DAEO or designee shall record the date of the 
review and ensure that all reports are reviewed within the 60 day 
period. After review, the DoD component DAEO or designee may proceed to 
obtain addition information, seek remedial action, or sign and date the 
report.
    (4) Special reviewing requirements of O-9 and O-10 Flag and General 
Officer nominees. (i) As part of the process for approving nominees for 
appointment to O-9 and O-10 Flag or General officer positions, the 
Secretaries of the Military Departments shall ensure that the nominee 
has a current SF 278 on file and that the report has been reviewed by 
the appropriate DoD component DAEO or designee in relation to the 
position for which he is being considered.
    (ii) Secretaries of Military Departments shall cause a review of all 
relevant systems of records maintained by their departments, including 
investigative files, to determine if there is any evidence that the 
nominee has violated the rules or standards of conduct.
    (iii) Each nomination forwarded to the Secretary of Defense shall be 
accompanied by a certification by the Secretary of the Military 
Department concerned that the required review has been conducted and has 
or has not disclosed a violation of the rules or standards of conduct.
    (h) Disposition--(1) Designation of certifying official. Only the 
Head of the DoD component or the DoD component

[[Page 470]]

DAEO may certify nomination reports required to be filed by a reporting 
individual who is nominated by the President to a position requiring the 
advice and consent of the Senate. For all other reports, the DoD 
component DAEO may delegate this responsibility to other officials 
within the DoD component.
    (2) Disposition. The SF 278 and a complete record of all action 
taken thereon shall be retained for a period of six years by the DoD 
component DAEO or designee, and a copy of the report shall be forwarded 
to OGE, when required. After the six-year period, the report shall be 
destroyed, unless needed in an ongoing investigation. In the case of a 
reporting individual who filed a report as a nominee and was not 
subsequently confirmed by the Senate, the report shall be destroyed one 
year after the reporting individual is no longer under consideration by 
the Senate.
    (i) Public availability of reports. SF 278s must be made available 
for public inspection 30 days after the reports are filed unless 
otherwise exempted under law. OGE Form 201, ``Request to Inspect or 
Receive Copies of SF 278, Financial Disclosure Report,'' shall be filed 
by a requestor before inspecting an SF 278.
    (j) Penalties--(1) Action within a DoD component. The Head of the 
DoD component may take appropriate action, including adverse action, in 
accordance with applicable laws or regulations, against any reporting 
individual who fails to file an SF 278 or who falsifies or fails to 
report required information.
    (2) Action by the U.S. Attorney General. The U.S. Attorney General 
may bring a civil action in the U.S. District Court against any 
individual who knowingly and willfully falsifies or fails to file or 
report information required to be reported. The court may assess a civil 
penalty. Knowing and willful falsification of information required to be 
filed may also result in criminal prosecution under 18 U.S.C. 1001, 
leading to a fine or imprisonment of not more than five years, or both.
    (3) Misuse of reports. (i) The U.S. Attorney General may bring a 
civil action against an individual who obtains or uses an SF 278 filed 
under the Ethics in Government Act, Public Law 95-521 (5 U.S.C. App.), 
for the following reasons:
    (A) Any unlawful purpose;
    (B) Any commercial purpose other than by news and communications 
media for dissemination to the general public;
    (C) Determining or establishing the credit rating of any individual;
    (D) Directly or indirectly, for the solicitation of money for any 
political, charitable or other purpose.
    (ii) The court in which the action is brought may assess a penalty 
against a person in any amount, not to exceed $10,000. This shall be in 
addition to any other remedy available under statutory or common law.
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, Apr. 24, 1995]



Sec. 84.22  Confidential financial disclosure report (SF 450).

    (a) Individuals required to file. (1) Covered positions. For 
purposes of this section, unless required to file an SF 278 or unless 
expressly exempted, the following individuals are in ``covered 
positions'' and are required by 5 CFR part 2634 to file initial and 
annual SF 450 through their supervisor to their Ethics Counselor as set 
out in paragraph (f) of this section:
    (i) Commanding officers, heads and deputy heads, and executive 
officers of:
    (A) Navy shore installations with 500 or more military and civilian 
DoD employees (including foreign nationals and indirect personnel 
regularly attached but excluding personnel attached for temporary duty); 
and
    (B) All Army, Air Force, and Marine Corps installations, bases, air 
stations or activities.
    (ii) Special Government employees, except the following categories 
of DoD employees who are required to file reports only when specifically 
requested to do so by their supervisor:
    (A) Physicians, dentists, and allied medical specialists engaged 
only in providing services to patients;
    (B) Veterinarians providing only veterinary services;
    (C) Lecturers participating only in educational activities;
    (D) Chaplains performing only religious services;

[[Page 471]]

    (E) Individuals in the motion picture or television fields who are 
utilized only as narrators or actors in DoD productions;
    (F) Reservists on active duty for less than 30 consecutive days 
during a calendar year; and
    (G) Members of selection panels for ROTC candidates.
    (iii) DoD employees classified at GS/GM-15 or below under 5 U.S.C. 
5332 or a comparable pay level under other authority, and members of the 
military below the grade of O-7 as follows:
    (A) When the official responsibilities of such DoD employees require 
them to participate personally and substantially through decision or 
exercise of significant judgment in taking an official action for 
contracting or procurement, administering or monitoring grants, 
subsidies, licenses or other Federally conferred financial or 
operational benefits, regulating or auditing any non-Federal entity, or 
other activities in which the final decision or action may have a direct 
and substantial economic impact on the interests of any non-Federal 
entity;
    (B) Any DoD employee serving in a position in which his supervisor 
determines that the duties and responsibilities of the position require 
the DoD employee to file such a report to avoid an actual or apparent 
conflict of interest and to carry out the purpose of any statute, 
Executive Order, or regulation applicable to or administered by that 
reporting individual;
    (iv) Individuals who are detailed to positions described in 
paragraph (a)(1)(iii) of this section.
    (v) Individuals serving on detail under the Intergovernmental 
Personnel Act, from State or local governments, institutions of higher 
education or other eligible organizations. See 5 U.S.C. 3371-3376.
    (2) Exclusion. (i) Any DoD employee or group of DoD employees may be 
excluded from all or a portion of the reporting requirements when the 
DoD component Head or designee determines that a report is unnecessary 
because of the remoteness of any impairment to the integrity of the 
Federal Government, because of the degree of supervision and review of 
the DoD employee's work, or because the use of an alternative procedure 
is adequate to prevent possible conflicts of interest. Any alternative 
procedure must be approved in writing by OGE.
    (ii) DoD employees who are not employed in contracting or 
procurement and who have decision making responsibilities regarding 
expenditures of less than $2,500 per purchase and less than $25,000 
cumulatively per year are excluded from the requirement to file the SF 
450. However, Agency Designees may require such DoD employees, in 
individual cases, to file the SF 450. Such DoD employees remain subject 
to conflict of interest statutes and regulations.
    (b) Information on covered positions. (1) The directors of personnel 
offices are responsible for providing the following information to their 
DoD component DAEOs or designees they service:
    (i) Immediately upon the appointment of covered DoD employees, the 
name, position, organization and entrance-on-duty date of DoD employees 
required by their supervisor to file a new entrant SF 450.
    (ii) By October 3 of each year, a list of the names, positions and 
organizations, when applicable, of DoD employees who are required to 
file an annual SF 450.
    (2) Coordination is required as follows:
    (i) Administrative officers (or equivalent) of each organization 
shall coordinate with the supervisors within their organization, in 
consultation with the DoD component DAEO or designee, to update the list 
of annual reporting individuals in their organization and report any 
additions or deletions to the concerned Ethics Counselor by October 31 
of each year. In addition, it is the administrative officers' 
responsibility to ensure that any new positions are evaluated to 
determine whether such reports are required; or
    (ii) The directors of personnel offices shall coordinate with Ethics 
Counselors and supervisors to ensure that position or billet 
descriptions of reporting individuals described in paragraph (a) of this 
section contain a statement that an SF 450 must be filed.

[[Page 472]]

All new or revised position or billet descriptions shall be reviewed to 
determine whether such reports are required.
    (c) Notification of requirement to file. DoD component DAEOs or 
designees shall provide appropriate notices and instructions to ensure 
the timely preparation of the reports and submission to their 
supervisors and their Ethics Counselors for review and filing.
    (d) Time of filing--(1) New entrant reports. (i) Except for a 
special Government employee, a reporting individual shall submit an SF 
450 with information current as of the filing date for the preceding 12 
months, through his supervisor to his Ethics Counselor not later than 30 
days after assuming duties in a covered position. Upon transfer or 
reassignment from one covered position to another, a reporting 
individual shall submit a copy of his previous report to the appropriate 
supervisor of the new position.
    (ii) A special Government employee shall submit an SF 450 with 
information current as of the filing date for the preceding 12 months, 
through his supervisor to his Ethics Counselor before assuming duties in 
a covered position. A special Government employee whose appointment is 
renewed shall file a new entrant report for the preceding 12 months 
prior to his reappointment. A special Government employee whose 
appointment exceeds one year shall file a new entrant report on the 
anniversary of his appointment.
    (2) Annual reports. A reporting individual (except a special 
Government employee) who was employed at least 61 days during the 
preceding reporting period must submit an SF 450 to his Ethics Counselor 
by November 30 of each year covering the preceding 12 months (or any 
portion thereof not covered by a new entrant report), with information 
current as of September 30 of that year. A reporting individual who is 
reassigned or transferred from one covered position to another during 
the reporting period shall file an annual report whether or not he was 
employed in that position for 61 days.
    (3) Extension of filing deadline. (i) When required by reason of 
duty assignment, infirmity, or other good cause affecting a reporting 
individual, the DoD component DAEO or designee may grant an extension of 
the filing deadline, not to exceed 60 days for annual reports or 90 days 
for new entrant reports.
    (ii) Requests for extensions shall be submitted in writing.
    (iii) Each annual reporting individual is automatically granted a 30 
day extension by this part to make the reporting deadline November 30 as 
stated in paragraph (d)(2) of this section. This automatic extension 
need not be annotated on an individual report. Any other extension shall 
be noted.
    (e) Content of report. (1) Instructions for completing the SF 450 
are included on the report. See instructions at 5 CFR 2634.907 and 
2634.908 for additional guidance or contact the local Ethics Counselor.
    (2) A complete report is required even though no changes have 
occurred since the last submission.
    (3) A reporting individual shall request required information known 
only to another person to be submitted by that person to appropriate 
reviewing authorities. Such a submission may be made with a request for 
confidentiality which shall be honored by DoD reviewing authorities when 
appropriate, even if it limits disclosure to the reporting individual.
    (f) Chain of submission. A reporting individual shall submit his SF 
450 through his supervisor to his Ethics Counselor. It is the 
responsibility of the reporting individual to ensure that an annual 
report is filed by November 30.
    (g) Review. (1) Upon receipt of an SF 450, the supervisor of the 
reporting individual shall provide an initial review of the report using 
the criteria set forth in paragraph (g)(2) of this section and forward 
it with any comments to the local Ethics Counselor for further review.
    (2) The Ethics Counselor shall review each report to determine that:
    (i) Each item is completed; and
    (ii) No interest or position disclosed on the report violates or 
appears to violate:
    (A) Any applicable provision of Chapter 11 of title 18, United 
States Code;

[[Page 473]]

    (B) The Ethics in Government Act of 1978, Public Law 95-521 (5 
U.S.C. App.), and implementing regulations;
    (C) Executive Order 12674 and implementing regulations; or
    (D) Any other related laws or regulations applicable to DoD 
employees of the agency.
    (3) The Ethics Counselor shall not sign and date the report until 
the determinations described in paragraph (g)(2) of this section are 
made. The reports are to be taken at ``face value'' unless there is a 
patent omission or ambiguity or the official has independent knowledge 
of matters outside the report.
    (4) If the Ethics Counselor believes that additional information is 
required, the reporting individual shall be notified of the additional 
information required and the date by which it must be submitted. The 
reporting individual shall submit the required information directly to 
the Ethics Counselor.
    (i) When the Ethics Counselor amends or revises a report based on 
additional information obtained from the reporting individual, he shall 
initial the amendment or revision and make a note of the source of the 
information in the comment section of the report. For example, if the 
Ethics Counselor adds to a report that a certain fund is an excepted 
investment fund based on a telephone conversation with the reporting 
individual, he shall number and initial the change on Schedule A and add 
a notation in the comment section of the report such as, ``1. per 
telecon with Mr. Doe on June 16, 1992'' and initial the comment.
    (ii) When a substantial amount of information is missing from the 
report, it shall be returned to the supervisor for his evaluation in 
accordance with the standards set forth in paragraph (g)(2) of this 
section with instructions to return it to the Ethics Counselor with any 
additional comments or supplementary information.
    (5) If the Ethics Counselor agrees with the supervisor's evaluation 
that no item violates, or appears to violate, applicable laws or 
regulations, then the Ethics Counselor shall sign and date the report.
    (6) If the Ethics Counselor agrees with the supervisor's evaluation 
that no item violates, or appears to violate, applicable laws or 
regulations, but that there are financial interests in non-Federal 
entities doing or seeking business with DoD, then the Ethics Counselor 
may issue a memorandum of caution to the reporting individual and shall 
sign and date the report.
    (7) If the Ethics Counselor disagrees with the supervisor's 
evaluation that no item violates or appears to violate applicable laws 
or regulations, then the Ethics Counselor shall do the following:
    (i) Notify the reporting individual, in writing, of the preliminary 
determination;
    (ii) Afford the reporting individual a reasonable opportunity for an 
oral or written response; and
    (iii) Determine, after considering any response, whether or not the 
reporting individual is in compliance with applicable laws and 
regulations. If the Ethics Counselor concludes that the report does 
fulfill the requirements, he shall sign and date the report. If the 
Ethics Counselor determines that it does not, he shall:
    (A) Notify the reporting individual of the conclusion;
    (B) Afford the reporting individual an opportunity for personal 
consultation, if practicable;
    (C) Determine what remedial action shall be taken to bring the 
reporting individual into compliance; and
    (D) Notify the reporting individual, in writing, of the remedial 
action required, indicating a date by which that action must be taken;
    (E) Ensure that the supervisor of the reporting individual is 
notified of the required remedial action and date by which that action 
must be taken.
    (8) Except in unusual situations, which must be documented fully to 
the satisfaction of the Ethics Counselor, remedial action shall be 
completed within 90 days from the date the reporting individual was 
notified that the action is required.
    (9) Remedial steps, in accordance with 5 CFR 2634.605-2635.607 may 
include the following measures:
    (i) Divestiture:

[[Page 474]]

    (A) Any DoD employee or the spouse, minor or dependent child of a 
DoD employee may be issued a Certificate of Divestiture by the Director, 
OGE, upon a determination that such divestiture is reasonably necessary 
to comply with 18 U.S.C. 208 or any other Federal Government conflict of 
interest statute, regulation, rule, or Executive order;
    (B) If obtained before the sale, the Certificate of Divestiture 
allows for the non-recognition of capital gains that result upon the 
sale of property to comply with conflict of interest requirements if the 
property is rolled over into property permitted by OGE. See 5 CFR 
2634.1001 for additional guidance;
    (C) The following items must be submitted to the Director, OGE, by 
the DoD component DAEO:
    (1) A copy of the written request from the individual to the DoD 
component DAEO to seek certification in the case of the property to be 
divested;
    (2) A copy of the latest SF 278 or SF 450;
    (3) A detailed description of the specific property in which 
divestiture is contemplated;
    (4) A complete statement by the DoD component DAEO or designee of 
the facts and circumstances relevant to the requirement for divestiture 
and an explanation of the rules that apply to the requirement for 
divestiture;
    (5) An analysis and recommendation as to whether the certificate 
should be granted.
    (D) The Director, OGE, will issue a Certificate of Divestiture when 
divestiture is reasonably necessary to comply with conflict of interest 
requirements.
    (ii) Disqualification in accordance with 5 CFR 3601.105;
    (iii) Limitation of duties;
    (iv) Transfer or reassignment;
    (v) Resignation;
    (vi) Exemption under 18 U.S.C. 208(b)(1) or (b)(3);
    (vii) Establishment of a qualified blind trust
    (10) When the Ethics Counselor determines that a reporting 
individual has complied fully with the remedial measures, a notation to 
that effect shall be made on the SF 450. The Ethics Counselor shall then 
sign and date the SF 450 and dispose of it in accordance with paragraph 
(h) of this section.
    (11) If steps ensuring compliance with applicable laws and 
regulations are not taken by the date established, the Ethics Counselor 
shall report the matter to the agency designee for appropriate action, 
with an information copy to the DoD component DAEO.
    (12) All reports shall be reviewed within 60 days after the date of 
filing and the Ethics Counselor shall record the date of the initial 
review. After the initial review, the Ethics Counselor shall obtain 
additional information, as necessary, seek remedial action, or sign and 
date the report.
    (h) Disposition. The SF 450 and a complete record of all action 
taken thereon shall be retained for a period of six years in a central 
location within the agency, command or activity to which the reporting 
individual was assigned at the time of filing, after which they shall be 
destroyed, unless needed in an ongoing investigation.
    (i) Privacy Act. The SF 450 is a confidential report. Accordingly, 
the reports are protected by the Privacy Act, 5 U.S.C. 552 and are 
exempt from being released to the public under the Freedom of 
Information Act, 5 U.S.C. 552(b)(3)(A) and (B), (b)(4) and (b)(6).
    (j) Status reports. (1) Not later than December 15 of each year, 
Ethics Counselors shall prepare a consolidated status report concerning 
the annual filing of the SF 450. The status report shall be sent through 
the head of the DoD component command or organization to the respective 
DoD component DAEO or designee and shall contain the following 
information:
    (i) The number of individuals required to file an annual SF 450; and
    (ii) The number of individuals who have not filed an SF 450 as of 
November 30.
    (2) Subsequent to December 15, monthly reports may be required by 
the DoD component DAEO to be filed for those organizations which have 
not received an SF 450 from all reporting individuals required to file, 
until 100% compliance has been achieved. These monthly reports shall be 
forwarded as described in paragraph (j)(1) of this section.

[[Page 475]]

    (k) Penalties--(1) Administrative penalties. Anyone failing to file 
a report, or falsifying or failing to file required information, may be 
subject to disciplinary action by the employing organization, including 
such measures as suspension of consideration for appointment, 
reassignment of duties and termination of employment.
    (2) Criminal liability. Anyone who knowingly or willfully falsifies 
information on a report may be subject to criminal prosecution under 18 
U.S.C. 1001.
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, Apr. 24, 1995]



Sec. 84.23  Report of DoD and defense related employment (DD form 1787).

    (a) Individuals required to file. Each civilian DoD employee of a 
DoD component who meets the statutory criteria is required by 10 U.S.C. 
2397 to file a DD Form 1787,\21\ ``Report of DoD and Defense Related 
Employment,'' with his Ethics Counselor. A DoD employee meets the 
criteria if he:
---------------------------------------------------------------------------

    \21\ Copies are available for DoD Standards of Conduct Office, 
Office of General Counsel, 1600 Defense Pentagon, Washington, DC 20301-
1600.
---------------------------------------------------------------------------

    (1) Is employed at a pay rate equal to or greater than the minimum 
rate for a GS/GM-13;
    (2) Within the two-year period prior to the effective date of 
service or employment with the DoD component, was employed by a defense 
contractor who, during the preceding one-year period, was awarded $10 
million or more in defense contracts; and
    (3) Was employed by or performed services for the defense contractor 
and at any time during that year received compensation of or was 
salaried at a rate of $25,000 per year or more at any time during 
employment.
    (i) Compensation is received by an individual if it is paid to a 
business entity with which the person is affiliated in exchange for 
services rendered by that individual.
    (ii) A rate of $25,000 per year equates to $12 per hour.
    (b) Time of filing. DoD employees shall file a DD Form 1787 with 
their local Ethics Counselors within 30 days of entering on duty with 
the DoD component.
    (c) Review. (1) When a report is filed, the Ethics Counselor shall 
review the DD Form 1787 to determine whether:
    (i) Each item is completed and sufficient information is provided; 
and
    (ii) Whether the information indicates any violation or apparent 
violation of any of the conflicts of interest, standards of conduct, 
procurement integrity, or related laws and regulations.
    (2) The Ethics Counselor need not audit the report. Disclosures are 
to be taken at ``face value'' unless there is a patent omission or 
ambiguity or the official has independent knowledge of matters outside 
the report. However, it its expected that the Ethics Counselor will 
resolve any apparent violations to ensure there are no actual 
violations.
    (3) If the Ethics Counselor believes that additional information is 
required, the reporting individual shall be notified of the additional 
information required and the date by which it must be submitted. The 
reporting individual shall submit the required information directly to 
the Ethics counselor.
    (4) When the Ethics Counselor has completed the review and 
accomplished any necessary remedial action, the Ethics Counselor shall 
sign and date the report and dispose of it in accordance with 
Sec. 84.23(d).
    (5) If the Ethics Counselor concludes that the reporting individual 
is not in compliance with applicable laws or regulations, the Ethics 
Counselor shall:
    (i) Notify the reporting individual, in writing, of the preliminary 
determination;
    (ii) Afford the reporting individual an opportunity for personal 
consultation, if practicable;
    (iii) Determine what remedial action should be taken to bring the 
reporting individual into compliance; and
    (iv) Notify the reporting individual of the remedial action 
required, indicating a date by which that action must be taken, normally 
within 90 days.
    (6) When the Ethics Counselor determines that a reporting individual 
has complied fully with the remedial measures, a notation to that effect 
shall be

[[Page 476]]

made in the comment section of the report. The Ethics Counselor shall 
sign and date the report as the reviewing official and dispose of it in 
accordance with paragraph (d) of this section.
    (d) Disposition. (1) After the Ethics Counselor signs and dates the 
report, the Ethics Counselor shall send the original to the entire DoD 
Component DAEO or designee, who shall forward it, together with all 
other such reports that were received during the previous calendar year, 
to SOCO not later than March 15.
    (2) The DoD Component DAEO or designee shall ensure that appropriate 
data from each DD Form 1787 is extracted and sent, together with all 
other such data from other such reports that were received during the 
previous calendar year for the entire DoD Component, by March 15, to the 
Defense Manpower Data Center (DMDC) where a consolidated report to 
Congress is compiled. DMDC will accept data only on computer disk using 
any common word processing software or ASCII.
    (3) If steps ensuring compliance with applicable laws and 
regulations are not taken by the date established, the Ethics Counselor 
shall report the matter to the DoD component DAEO and take whatever 
other action might be required in accordance with subpart J of this 
part.
    (4) DD Forms 1787 shall be retained by SOCO for six years from the 
date of filing with SOCO.
    (e) Public availability of reports. DD Forms 1787 must be available 
for public examination upon request after the report is filed with SOCO, 
unless exempted pursuant to law. Reporting individuals are personally 
responsible for ensuring that their reports are accurate, complete, and 
timely.
    (f) Penalties--(1) Administrative penalties. Anyone failing to file 
a report, or falsifying or failing to file required information, may be 
subject to any applicable personnel or other action in accordance with 
applicable law or regulation, including adverse action. An 
administrative penalty of up to $10,000 may be imposed in accordance 
with 10 U.S.C. 2397.
    (2) Criminal liability. Any individual who knowingly or willfully 
falsifies information on a report may be subject to criminal prosecution 
under 18 U.S.C. 1001.
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, 20031, Apr. 24, 
1995]



                   Subpart H--Seeking Other Employment



Sec. 84.24  General rules.

    Office of Government Ethics Regulation. 5 CFR part 2635, subpart F 
provides rules on seeking other employment that apply to all DoD 
employees.



Sec. 84.25  Conflict of interest (18 U.S.C. 208).

    (a) Negotiating for employment. See 5 CFR 2635.603 for provisions on 
conflicts of interest in employment negotiations under 18 U.S.C. 208. 
The provisions of 18 U.S.C. 208 and related provisions of OGE 
regulations do not apply to enlisted members. However, provisions 
similar to 18 U.S.C. 208 do apply to enlisted members as follows: [The 
following is a General Order] except as approved by the DoD component 
DAEO or designee, an enlisted member, including an enlisted special 
Government employee, shall not participate personally and substantially 
as part of his official DoD duties, in any particular matter in which 
he, his spouse, minor child, partner, entity in which he is serving as 
officer, director, trustee, partner or employee or any entity with which 
he is negotiating or has an arrangement concerning prospective 
employment, has a financial interest [end of General Order]. See 18 
U.S.C. 208, Sec. 84.3(a)(2)(i)(A) and Sec. 84.15(b), and 5 CFR 2635.603.
    (b) Penalties. Violation of 18 U.S.C. 208 is punishable by a fine 
and imprisonment. The full range of administrative sanctions may also be 
imposed.



Sec. 84.26  Procurement integrity (41 U.S.C. 423(b)).

    (a) Soliciting, accepting, or discussing employment. (1) [The 
following is a General Order] During the conduct of a procurement, a 
procurement official may not knowingly, directly or indirectly, solicit 
or accept from, or discuss with, any officer, employee, representative, 
agent, or consultant of a

[[Page 477]]

competing contractor, any future employment or business opportunity [end 
of General Order]. See 48 CFR 3.104-6.
    (2) This prohibition does not apply to a procurement official:
    (i) After he leaves Federal Government service;
    (ii) Who is employed by a contractor, subcontractor, consultant, 
expert, or advisor after he ceases to act on behalf of, or provide 
advice to, the procuring agency concerning the procurement;
    (iii) Who has been granted recusal, in writing, in accordance with 
the provisions of 48 CFR 3.104-6 and paragraph (a)(4) of this action and 
who has in fact discontinued participation in the procurement;
    (iv) Whose only communication with a competing contractor is to 
reject an unsolicited offer of employment or business opportunity or 
advise the competing contractor that he must seek recusal prior to any 
discussion regarding the unsolicited offer;
    (v) Who has made inquiry in good faith of the potential contractor 
and been advised that the contractor is not or will not become a 
competing contractor on a procurement on which the individual is a 
procurement official; or
    (vi) Where the procurement official engages in conduct in good faith 
reliance upon a written ethics advisory opinion;
    (vii) After the procurement has been concluded by the award or 
modification of a contract or the cancellation of the procurement.
    (3) A procurement official may discuss employment or business 
opportunities with a competing contractor only if a written recusal 
request was submitted and approved in accordance with the policy and 
procedures contained in 48 CFR 3.104-6 (c) through (h). The head of the 
contracting activity has the authority to approve or disapprove a 
request for recusal; however, he may not approve recusal for a 
procurement official who has participated personally and substantially 
in certain evaluation functions listed in 48 CFR 3.104-6(c).
    (4) Any DoD procurement official or former DoD procurement official 
may, by written request, seek advice from his DoD component DAEO or 
designee regarding whether he may be precluded by the procurement 
integrity rules from engaging in a specified activity. See 48 CFR 3.104-
8.
    (i) The request must provide the DoD component DAEO or designee with 
sufficient information to make a determination.
    (ii) The DoD component DAEO shall make his determination, in 
writing, within 30 days, or as soon thereafter as practicable.
    (iii) A copy of the request and the ethics advisory opinion shall be 
retained for six years, in accordance with DoD component procedures.
    (b) Penalties. Violation of the provisions of 41 U.S.C. 423 is 
punishable by the full range of sanctions, including the following:
    (1) Civil penalties. Individual violators may be subject to a civil 
fine not to exceed $100,000. Violators, other than individuals, may be 
subject to a civil fine not to exceed $1 million.
    (2) Administrative sanctions. See Sec. 84.39.



Sec. 84.27  Reporting employment contacts (10 U.S.C. 2397a).

    (a) Individuals required to file. The following DoD employees are 
required by this part and by 10 U.S.C. 2397a to report, in writing, 
their employment contacts to their supervisor and DoD component DAEO or 
designee:
    (1) Any military officer in grade O-4 or above, or any civilian DoD 
employee serving in a position for which the rate of pay is equal to or 
greater than the minimum rate of pay for GS/GM-11 who;
    (2) At any time during his DoD service, performed a ``procurement 
function'' involving a defense contractor which received at least 
$25,000 a year in DoD business; and
    (3) Who contacts or is contacted by that defense contractor 
regarding future employment.
    (b) Content of report. Reports of employment contacts shall include:
    (1) The name, title, agency address, and telephone number of the 
reporting individual;
    (2) The name of the defense contractor concerned;
    (3) The date of each contact covered by the report; and
    (4) A brief description of the substance of each contact.

[[Page 478]]

    (c) Disqualification statement--(1) Individuals required to file 
disqualification.
    (i) Any DoD employee required to submit a report of an employment 
contact shall submit to his supervisor a written statement disqualifying 
himself from participating in any ``procurement function'' involving the 
defense contractor until such time as the possibility of future 
employment with that defense contractor has been rejected by either 
party.
    (ii) Procurement officials may be required to request recusal 
through formal procedures requiring written approval by the head of the 
contracting agency. See Sec. 84.26(a).
    (2) Distribution of disqualification. The disqualification statement 
shall be given to the DoD employee's supervisor and the Ethics 
Counselor. It also should be provided to others who might contact the 
DoD employee regarding the defense contractor which is the subject of 
the disqualification.
    (3) Contents of disqualification. The disqualification statement 
shall contain:
    (i) The name, title, agency address, and telephone number of the DoD 
employee submitting the report;
    (ii) The extent of disqualification (i.e., a description of duties 
affecting the defense contractor the DoD employee may not perform as a 
result of the disqualification);
    (iii) Identification of the DoD employee or office that will handle 
duties during the disqualification period; and
    (iv) An explanation of any other steps required to avoid potential 
conflicts of interests;
    (v) If the statement is necessary only because of a second contact 
which was rejected, information in accordance with paragraphs 
(c)(3)(iii) and (c)(3)(iv) of this section.
    (4) Withdrawal of disqualification. A DoD employee may withdraw a 
disqualification if employment discussions conclude with no arrangement 
regarding future employment, or if such an arrangement is ended, by 
notifying, in writing, the same individuals who received copies of his 
disqualification statement.
    (5) Review and retention of disqualification. The supervisor, with 
the assistance of the Ethics Counselor, shall review the 
disqualification statement to make sure it will prevent any conflict of 
interest and to determine whether the DoD employee can still carry out 
his responsibilities adequately. Both the supervisor and the Ethics 
Counselor shall retain a copy of the disqualification statement for 
three years.
    (d) Exception. A DoD employee need not report the contact or 
disqualify himself from officially participating in a particular matter 
involving the defense contractor if the first contact was initiated by 
the defense contractor and the DoD employee immediately terminates the 
discussion and unequivocally rejects consideration of employment 
opportunities. If the contact is renewed by either the defense 
contractor or the DoD employee, all contacts must be reported.
    (e) Penalties. An individual who fails to report an employment 
contact or to disqualify himself as required by paragraphs (a) through 
(c) of this section may be subject to the following administrative 
penalties:
    (1) Prohibition of employment with the defense contractor concerned 
for up to ten years from the date of separation from DoD; and
    (2) An administrative penalty not to exceed $10,000.



Sec. 84.28  DoD guidance.

    (a) Appearances. DoD employees shall:
    (1) Ensure that the prospect of employment does not affect the 
performance or non-performance of their official duties;
    (2) Ensure that they do not communicate inside information to a 
prospective employer; and
    (3) Avoid any activity that would affect the public's confidence in 
the integrity of the Federal Government, even if it is not an actual 
violation of the law.
    (b) Written guidance. DoD employees may obtain counseling and 
written advice concerning restrictions on seeking other employment from 
their Ethics Counselor:
    (1) Although the counseling and advice are given by DoD attorneys 
and involve the interpretation of law and

[[Page 479]]

regulation and rendering of legal opinion, no attorney-client or other 
confidential relationship is created. Communications made to an Ethics 
Counselor in seeking such advice are not privileged.
    (2) This counseling and advice is personal to the current or former 
DoD employee. It does not extend to the individual's business, employer, 
or prospective employer.



              Subpart I--Post-Government Service Employment



Sec. 84.29  Office of Government Ethics regulation.

    (a) See 5 CFR part 2637, ``Regulations Concerning Post-Employment 
Conflict of Interest''.
    [5 CFR part 2637 applies only to DoD employees who left Federal 
Government service before 1991]
    (b) See 5 CFR part 2641, ``Post-Employment Conflict of Interest 
Restrictions''.
    [5 CFR part 2641 applies to DoD employees who left Federal 
Government service on or after January 1, 1991]



Sec. 84.30  Guidance on 18 U.S.C. 207.

    (a) OGE guidance. See Office of Government Ethics memorandum,\22\ 
``Revised Materials Relating to 18 U.S.C. 207,'' November 5, 1992.
---------------------------------------------------------------------------

    \22\ Copies are available from U.S. Office of Government Ethics, 
1201 New York Avenue NW., Suite 500, Washington, DC 20005-3917.
---------------------------------------------------------------------------

    (b) DoD guidance. The restrictions imposed by 18 U.S.C. 207(a), (c) 
and (d) do not apply to communications made solely to furnish scientific 
and technical information that are authorized by the Head of the DoD 
component.
    (1) To obtain such an authorization in the case of former DoD 
employees:
    (i) The head of the DoD component command or organization involved 
shall submit, in writing, to the Head of the DoD component a request 
that the former DoD employee be permitted to participate in a particular 
matter from which he would ordinarily be barred under 18 U.S.C. 207;
    (ii) The Head of the DoD component or designee may determine in 
writing that such participation is appropriate if:
    (A) The former DoD employee has outstanding scientific or 
technological qualifications;
    (B) The national interest of the United States would be served by 
such participation;
    (C) The former DoD employee has qualifications that are otherwise 
unavailable; and
    (D) The Head of the DoD component or designee has consulted with the 
DoD component DAEO.
    (2) In cases involving former Federal Government employees other 
than former DoD employees, authorization may be obtained in accordance 
with procedures in 18 U.S.C. 207(j)(5).
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, Apr. 24, 1995]



Sec. 84.31  Post-employment counseling and advice.

    (a) Written advice. Current and former DoD employees may obtain 
counseling and written advice concerning post-employment restrictions 
from the Ethics Counselor of the DoD component command or organization 
from which they are leaving, or have left, Federal Government service. 
Current and former DoD employees are, by statute, entitled to written 
advice from the DoD component DAEO or designee under 10 U.S.C. 2397b and 
41 U.S.C. 423. See Sec. 84.32 (a)(3) and (b)(3).
    (1) Although ethics counseling and advice are given by DoD attorneys 
and involve interpretation of law and regulation and rendering of legal 
opinion, no attorney-client or other confidential relationship is 
created. Communications made to an Ethics Counselor in seeking such 
advice are not privileged.
    (2) Ethics counseling and advice are personal to the current or 
former DoD employee. They do not extend to anyone else, including his 
business, employer, or prospective employer.
    (b) Delegation of authority. The DoD component DAEO may specifically 
delegate authority in writing for Ethics Counselors within the DoD 
component to provide written advice under 10 U.S.C. 2397b and 41 U.S.C. 
423. In any case where the local Ethics Counselor does not have the 
authority by written delegation, he shall provide the counseling and 
obtain the request for advice

[[Page 480]]

and necessary supporting information from the DoD employee and forward 
it to the DoD component DAEO or designee who has been specifically 
delegated the authority in writing to issue the written advice.



Sec. 84.32  Restrictions resulting from procurement activities.

    (a) 10 U.S.C. 2397b--(1) Restrictions. This statute prohibits the 
following three categories of former DoD employees from accepting 
compensation from the concerned defense contractor during the two-year 
period after separation from DoD:
    (i) 0-4s and above, and civilians serving in positions for which the 
rate of pay was equal to or higher than the minimum rate of a GS/GM-13, 
who:
    (A) On a majority of their working days during a two-year period 
prior to separation;
    (B) Performed a procurement function relating to a defense contract;
    (C) At a site or plant owned or operated by the defense contractor 
and which was the DoD employee's principal work location.
    (ii) 0-4s and above, and civilians serving in positions for which 
the rate of pay was equal to or higher than the minimum rate of pay for 
a GS/GM-13, who:
    (A) On a majority of their working days during the two-year period 
prior to separation;
    (B) Performed a procurement function related to a major defense 
system and;
    (C) In the performance of the procurement function, participated 
personally and substantially on any occasion and in a manner involving 
decision-making responsibilities with respect to a contract for the 
system;
    (D) Through contact with the defense contractor; and
    (iii) 0-7s and above, and civilians serving in positions for which 
the rate of pay was equal to or higher than the minimum rate of pay for 
a Senior Executive Service position, who during the two-year period 
prior to separation, acted as a ``primary representative of the United 
States'' in negotiation of a defense contract in an amount in excess of 
$10 million or settlement of an unresolved claim exceeding $10 million. 
An unresolved claim is valued by the greater of the amount of the claim 
or the amount of the settlement.
    (2) Penalties and effective dates. Former DoD employees who 
knowingly violate this statute are subject to a civil fine up to 
$250,000. Defense contractors who knowingly offer or provide any 
compensation to individuals in violation of this statute are subject to 
a civil fine up to $500,000.
    (i) The effective date of this law was April 16, 1987. The law does 
not prohibit the continuation of defense contractor employment begun or 
compensation accepted before then. If an employee separated from DoD 
prior to April 16, 1987, the statute does not apply. However, former DoD 
employees who were still employed or on active duty on or after April 
16, 1987 must comply fully with its provisions, if within its scope.
    (ii) For the period of December 1, 1989 until May 31, 1991, the 
statute was suspended and employment or acceptance of compensation 
during that period could not violate the statute. Questions about the 
effect of the suspension should be referred to the local Ethics 
Counselor.
    (3) Written opinion. (i) Before accepting compensation from a 
defense contractor, a DoD employee or former DoD employee is, by 
statute, entitled to a written opinion regarding the applicability of 
this statute to his specific circumstances. A request for such written 
opinion shall be submitted in writing to the Ethics Counselor serving 
the DoD component command or organization the DoD employee is leaving or 
from which he has separated. The request shall set forth all information 
relevant to the request.
    (ii) Ethics Counselors who have not been delegated authority in 
writing to issue 10 U.S.C. 2397b written opinions shall promptly forward 
the request to the DoD component DAEO or designee who has such 
authority.
    (iii) Written opinions shall be issued within 30 days of receiving 
the request together with all necessary information.
    (iv) A written opinion that this statute is not applicable to a 
specific situation, if based on a complete disclosure of all relevant 
information, creates a

[[Page 481]]

conclusive presumption that the receipt of compensation from a 
particular defense contractor is not a violation of the law.
    (v) A copy of each 10 U.S.C. 2397b written opinion shall be retained 
by the DoD component DAEO or designee for three years.
    (4) DoD interpretation of 10 U.S.C. 2397b. (i) If a DoD employee had 
been conducting all negotiations with a $10 million defense contractor 
on a major defense contract action of $10 million or more, but a 
superior DoD employee intervened directly in the negotiating process, 
both DoD employees would be considered ``primary'' representatives for 
that defense contract action.
    (ii) 10 U.S.C. 2397b does not prohibit any former DoD employee from 
accepting compensation from any defense contractor that, during the 
fiscal year preceding the fiscal year in which compensation is accepted, 
was not a defense contractor or was a defense contractor whose contracts 
totalled less than $10 million.
    (iii) 10 U.S.C. 2397b prohibits employment with particular defense 
contractors, not subcontractors, but former DoD employees cannot avoid 
its consequences merely by forming their own company and then 
``subcontracting'' themselves to otherwise prohibited defense 
contractors.
    (b) 41 U.S.C. 423--(1) Restrictions. This statute restricts a former 
DoD employee who was a procurement official with respect to a particular 
procurement from knowingly:
    (i) Participating in any manner on behalf of a competing contractor 
in any negotiations leading to the award or modification of a defense 
contract for such procurement; or
    (ii) Participating personally and substantially on behalf of the 
competing contractor in the performance of such defense contract.
    (2) Period of restrictions. Both restrictions apply for a period of 
two years from the date of the former DoD employee's last personal and 
substantial participation in the procurement on behalf of the Federal 
Government. Neither applies unless the individual was a DoD employee of 
the Federal Government at the time he served as a procurement official.
    (3) Written opinion. (i) A DoD employee or former DoD employee who 
is or was a procurement official is, by statute, entitled to a written 
opinion regarding the applicability of this statute to his specific 
circumstances. A request for such an opinion shall be submitted in 
writing to the Ethics Counselor serving the DoD component command or 
organization the DoD employee is leaving or from which he has separated. 
The request shall set forth all information relevant to the request. See 
48 CFR 3.104-8(e).
    (ii) Ethics Counselors who have not been delegated specific 
authority in writing to issue 41 U.S.C. 423 written opinions shall 
promptly forward the request to the DoD component DAEO or designee who 
has such authority.
    (iii) Written opinions shall be issued within 30 days of receiving 
the request, together with all necessary information.
    (iv) Where the DoD employee or former DoD employee relies in good 
faith on a written opinion that this statute is not applicable to a 
specific situation, the DoD employee or former DoD employee shall not be 
found to have knowingly violated the restrictions of the statute.
    (v) A copy of each 41 U.S.C. 423 opinion shall be retained by the 
DoD component DAEO or designee for three years.



Sec. 84.33  Restrictions on retired military members.

    (a) 18 U.S.C. 281(a). This statute restricts the selling activities 
of retired military officers. The provisions of this statute were 
suspended by the Federal Acquisition Streamlining Act of 1994 through 
December 31, 1996.
    (1) Restrictions. A criminal statute, 18 U.S.C. 281(a), provides 
that for a period of two years after retiring, no retired military 
officer may receive compensation for representing any other individual 
in the sale of anything to the Federal Government through the department 
in which he holds a retired status.
    (i) The term ``department'' refers to individual DoD components, not 
DoD as a whole, insofar as it concerns retired military officers. For 
example, this statute does not prohibit retired

[[Page 482]]

Navy and Marine Corps officers from selling to the Departments of the 
Army or Air Force.
    (ii) The term ``anything'' in the phrase ``sale of anything'' has 
been construed by DoJ to encompass both goods and services.
    (iii) DoD has determined that this statute does not prohibit the 
sale of personal services when the retiree is only representing himself. 
However, sale of personal services may not include the work product of a 
closely held corporation where individuals other than the retiree 
contribute to the services provided.
    (2) Definition of ``selling.'' (i) For the purpose of this statute, 
`selling'' means:
    (A) Signing a bid, proposal, or contract;
    (B) Negotiating a contract;
    (C) Contacting a DoD employee to obtain or negotiate defense 
contracts, negotiate or discuss changes in specifications, price, cost 
allowances, or other terms of a defense contract, or settle disputes 
concerning performance of a defense contract; or
    (D) Any other liaison activity with a view toward the ultimate 
consummation of a sale although the actual defense contract is 
negotiated subsequently by another person.
    (ii) Activities which are not considered ``selling'' include:
    (A) Purely social contacts, as long as there is an independent basis 
for the social relationship and no promotion of a product or attempt to 
influence a procurement;
    (B) Technical contacts for the purpose of conferring with non-
contracting technical specialists to acquire information this is 
available to all prospective defense contractors, provided that these 
contacts do not otherwise involve ``selling'' as discussed in paragraph 
(a)(2)(i) of this section. See 42 Comp. Gen. 236.241;
    (C) Contacts subsequent to the execution of a defense contract 
relating to performance or progress, if they do not include modification 
of the defense contract or ``selling'' as discussed in paragraph 
(a)(2)(i) of this section.
    (b) 18 U.S.C. 281(b). For a period of two years after terminating 
service with the Federal Government, a retired military officer may not 
act as an agent or attorney for the prosecution or assist in the 
prosecution of any claim against the United States involving the 
department in which he holds a retired status or which concerns a 
subject with which the military officer was directly connected while on 
active duty. A violation on this statute is punishable by a $10,000 fine 
and one year imprisonment.
    (c) Restrictions on Federal Government employment--(1) Dual 
compensation laws. A retired member of any uniformed service who holds a 
civilian position with the Federal Government is subject to reduction of 
retired pay while receiving pay from a Federal Government civilian 
position. The term ``retired member'' means anyone, officer or enlisted, 
entitled to receive retired pay. The term ``retired pay'' includes both 
retired and retainer pay. The current law generally applies to retired 
regular officers, retired at any time, and to all former members of the 
uniformed services who left active duty after January 11, 1979. See 5 
U.S.C. 5532 for exceptions to this general rule.
    (i) The dual compensation reduction formulas. There are two 
provisions in the current dual compensation law which may operate to 
reduce the retired pay of retired members of the uniformed services who 
hold Federal Government civilian positions.
    (A) The first reduction provision. The first reduction provision 
applies only to retired regular officers who retired at any time. This 
provision operates to reduce the retired pay of a retired regular 
military officer receiving pay from a Federal Government civilian 
position regardless of the amount of salary from that civilian position. 
It provides that such retired military officer is entitled to receive 
the full pay of the civilian position, but retired pay will be reduced 
to an annual rate equal to base amount plus one-half of the remainder of 
the retired pay, if any. The base amount is increased periodically to 
reflect changes in the Consumer Price Index, See 5 U.S.C. 5532(b).
    (B) The second reduction provision. The second reduction provision 
applies, in general, to all retired military members who first received 
retired pay after January 11, 1979. The reduction

[[Page 483]]

depends upon the amount of pay received from the Federal Government 
civilian position. This provision operates to reduce the retired pay of 
a retired member when the annual rate of pay for the civilian position 
combined with the annual rate of retired pay (reduced in the case of 
retired regular officers as discussed in Sec. 84.33(c)(1)(i)(A)) exceeds 
the annual rate of basic pay for level V of the Executive Schedule. 
Reductions are computed as follows:
    (1) If the combination of pay from the civilian position and retired 
pay exceeds the amount currently paid for level V of the Executive 
Schedule, the retired pay will be reduced to keep the total at the level 
V limit.
    (2) Reductions to retired pay are made per pay period whenever the 
combination of the two salaries for the pay period exceeds the pay for a 
level V position for that pay period. Reductions made in such pay 
periods are not refundable even when the combined pay amounts for the 
total year is less than the annual rate for level V of the Executive 
Schedule;
    (3) The amount of retired pay may not be reduced to an amount less 
than the amount deducted from the retired pay as a result of 
participation in any survivor's benefits in connection with retired pay 
or veterans insurance programs and no reductions shall be made to 
retired pay based, in whole or in part, upon disability incurred in the 
line of duty as a direct result of armed conflict or during a period of 
war.
    (ii) Waivers. (A) A retired member may, in certain limited 
circumstances, obtain a waiver so that his retired pay would not be 
reduced while holding a Federal Government civilian position. See 5 
U.S.C. 5532(g). The circumstances under which a waiver may be granted 
are:
    (1) On a case by-case basis for a retired member holding a Federal 
Government civilian position for which there is exceptional difficulty 
in recruiting or retaining a qualified employee; or
    (2) For temporary employment that is necessary due to an emergency 
involving a direct threat to life or property, or under other unusual 
circumstances.
    (B) The Director, OPM, may grant a waiver at the request of the Head 
of an Executive agency. Additionally, the Director, OPM, may delegate to 
an agency the authority to grant waivers for the temporary employment of 
retired members during emergencies or other unusual circumstances, but 
not for employment necessitated by exceptional difficulties in 
recruiting or retaining qualified individuals. The Director, OPM, has 
delegated to DoD authority to approve dual compensation restriction 
waivers in certain circumstances at installations scheduled for closure.
    (C) Waivers are to be the exception, not the rule. If appropriate, 
however, a waiver may be obtained for either or both of the dual 
compensation reductions. See 5 CFR part 553 for procedures for obtaining 
a waiver.
    (2) Post-military service employment in DoD under 5 U.S.C. 3326. As 
of November 6, 1992, the suspension of this provision ended. See DoD 
Directive 1402.1.\23\ To avoid appearances of favoritism or preferential 
treatment, retired military members may not be selected to fill civil 
service positions in DoD (including non-appropriated fund 
instrumentalities within 180 days following retirement unless:
---------------------------------------------------------------------------

    \23\ See footnote 4 to Sec. 84.7(d).
---------------------------------------------------------------------------

    (i) The appointment is authorized by the Secretary of a Military 
Department or designee, or by OPM if the position is in the competitive 
service;
    (ii) The minimum rate of basic pay for the position has been 
increased under 5 U.S.C. 5305; or
    (iii) A state of national emergency exists.
    (d) Foreign employment restrictions. (1) Article I, Section 9, 
Clause 8, of the Constitution of the United States prohibits any person 
holding any office of profit or trust under the Federal Government from 
accepting any present, emolument, office, or title of any kind whatever 
from any king, prince, or foreign state without the consent of Congress.
    (i) This provision prohibits employment of all retired military 
members,

[[Page 484]]

both officer and enlisted and both regular and reserve, by a foreign 
government unless Congressional consent is first granted. See 44 Comp. 
Gen. 130.
    (ii) Employment by educational or commercial institutions owned, 
operated, or controlled by a foreign government is included within the 
scope of this restriction.
    (iii) The penalty for violation is withholding the retired military 
member's retired pay in an amount equal to the foreign salary illegally 
received. See 61 Comp. Gen. 306.
    (2) Congress has consented to the acceptance of civil employment 
with a foreign government by, among others, retired regular military 
members and reserve military members, if both the Secretary of the 
Military Department and the Secretary of State approve the employment. 
See 37 U.S.C. 908. Because approval is prospective only, foreign civil 
employment should not be accepted until approval has been obtained. 
Retired military members who wish to accept such employment should 
submit a written request for approval to the Secretary of their Military 
Department through appropriate channels. The request must fully describe 
the contemplated employment and the nature and extent of the involvement 
with the foreign government.
    (3) A former military member desiring employment with a foreign 
government or any foreign business interest may be required to register 
as an agent of a foreign principal under the Foreign Agents Registration 
Act of 1938, 22 U.S.C. 611 et seq. Any person who acts as an agent of a 
foreign principal must file a registration statement with the U.S. 
Attorney General.
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, 20032, Apr. 24, 
1995]



Sec. 84.34  Restrictions on former senior appointees.

    Executive Order 12834 (58 FR 5911) requires contractual ethics 
commitments regarding post-Government service employment from full-time, 
non-career Presidential, Vice-Presidential or agency Head appointees in 
an Executive agency whose rate of basic pay is not less than the rate 
for level V of the Executive Schedule, except for those appointed as 
members of the senior foreign service or solely as uniformed service 
commissioned officers. See Executive Order 12834 and OGE Form 203,\24\ 
``Senior Appointee Pledge,'' January 1993, and OGE Form 204,\25\ ``Trade 
Negotiation Pledge,'' January 1993.
---------------------------------------------------------------------------

    \24\ Copies are available from U.S. Office of Government Ethics, 
1201 New York Avenue NW., Suite 500, Washington, DC 20005-3917.
    \25\ See footnote 23 to Sec. 84.34.
---------------------------------------------------------------------------

[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, Apr. 24, 1995]



Sec. 84.35  Restrictions on dealing with current or former DoD employees.

    (a) General rule. Current DoD employees shall not knowingly deal, on 
behalf of the Federal Government, with current or former DoD employees 
whose participation in the transaction violates any statute or DoD 
directive, regulation or policy.
    (b) Terminal leave.
    (1) Military members on terminal leave may accept civilian 
employment with the Federal Government and are entitled to the pay of 
that civilian position in addition to the pay and allowances to which 
entitled while on terminal leave. See 5 U.S.C. 5534a.
    (2) A military officer on active duty may not accept a civil office 
with a State or local government, nor may he perform the duties of such 
an office. See 10 U.S.C. 973(b)(3). This applies while the military 
officer is on terminal leave. See 56 Comp. Gen 855.



Sec. 84.36  Reports of DoD and defense related employment (DD form 1787).

    (a) Individuals required to file. The following former DoD employees 
are required by 10 U.S.C. 2397 to file DD Form 1787 with their former 
DoD component:
    (1) Each former DoD employee of a DoD component who:
    (i) Served at a pay rate equal to or greater than the minimum rate 
for a GS/GM-13, or served on active duty at least ten years and held the 
grade of 0-4 or above at any time during his service;
    (ii) Within the two-year period immediately following termination of 
service or employment with the DoD component, is employed by a defense 
contractor who, during the preceding one-

[[Page 485]]

year period, was awarded $10 million or more in defense contracts; and
    (iii) Is employed by or performs services for the defense contractor 
and receives compensation of or is salaried at a rate of $25,000 per 
year or more from the defense contractor.
    (2) Compensation is received by a reporting individual if it is paid 
to a business entity with which the reporting individual is affiliated 
in exchange for services rendered by that reporting individual;
    (3) A rate of $25,000 per year equates to $12 per hour.
    (b) Time of filing. A former DoD employee shall file a report with 
his former DoD component DAEO or designee within 90 days of entering on 
duty with the defense contractor.
    (c) Review. (1) When the report is filed, the DoD component DAEO or 
designee shall review the report to determine whether:
    (i) Each item is completed and sufficient information is provided; 
and
    (ii) Whether the information indicates any violation or apparent 
violation of any of the conflicts of interest, standards of conduct, 
procurement integrity, and related laws and regulations.
    (2) The DoD component DAEO or designee need not audit the report. 
Disclosures are to be taken at ``face value'' unless there is a patent 
omission or ambiguity or the official has independent knowledge of 
matters outside the report. However, it is expected that the DoD 
component DAEO or designee will resolve any apparent violations to 
ensure there are no actual violations.
    (3) If the DoD component DAEO or designee believes that additional 
information is required, the reporting individual shall be notified of 
the additional information required and the date by which it must be 
submitted. The reporting individual shall submit the required 
information directly to the DoD component DAEO or designee.
    (4) When the DoD component DAEO or designee has completed the review 
and accomplished any necessary remedial action, he shall sign and date 
the report and dispose of it in accordance with paragraph (d)(2) of this 
section.
    (5) If the DoD component DAEO or designee concludes that the 
reporting individual is not in compliance with applicable laws or 
regulations, the DoD component DAEO or designee shall:
    (i) Notify the reporting individual of the preliminary 
determination;
    (ii) Afford the reporting individual an opportunity for personal 
consultation, if practicable;
    (iii) Determine what remedial action should be taken to bring the 
reporting individual into compliance; and
    (iv) Notify the reporting individual of the remedial action 
required, indicating a date by which that action must be taken, normally 
within 90 days.
    (6) When the DoD component DAEO or designee determines that a 
reporting individual has complied fully with the remedial measures, a 
notation to that effect shall be made in the comment section of the 
report. Then the DoD component DAEO or designee shall sign and date the 
report as the reviewing official and dispose of it in accordance with 
paragraph (d)(2) of this section.
    (d) Disposition.
    (1) After the Ethics Counselor signs and dates the report, the 
Ethics Counselor shall send the original to the DoD Component DAEO or 
designee, who shall forward it, together with all other such reports 
that were received during the previous calendar year, to SOCO not later 
than March 15.
    (2) The DoD Component DAEO or designee shall ensure that appropriate 
data from each DD Form 1787 is extracted and sent, together with all 
other such data from other such reports that were received during the 
previous calendar year for the entire DoD Component, by March 15 to the 
Defense Manpower Data Center (DMDC) where a consolidated report to 
Congress is compiled. DMDC will accept data only on computer disk using 
any common word processing software or ASCII.
    (3) If steps ensuring compliance with applicable law and regulations 
are not taken by the date established, the Ethics Counselor shall report 
the matter to the DoD Component DAEO and take whatever other action 
might be required in accordance with subchapter J of this part.

[[Page 486]]

    (4) DD Forms 1787 shall be retained by SOCO for six years from the 
date of filing with SOCO.
    (e) Public availability of reports. DD Forms 1787 must be made 
available for public examination upon request after the reports are 
filed with SOCO, unless exempted pursuant to law. Reporting individuals 
are personally responsible for ensuring that their reports are accurate, 
complete, and timely.
    (f) Penalties--(1) Administrative penalties. Anyone failing to file 
a report or falsifying or failing to file required information, may be 
subject to any applicable personnel or other action in accordance with 
applicable law or regulation, including adverse action. An 
administrative penalty of up to $10,000 may be imposed in accordance 
with 10 U.S.C. 2397.
    (2) Criminal liability. Any individual who knowingly or willfully 
falsifies information on a report may be subject to criminal prosecution 
under 18 U.S.C. 1001.
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20032, Apr. 24, 1995]



                         Subpart J--Enforcement



Sec. 84.37  Enforcement of the provisions of the Joint Ethics Regulation.

    Penalties for violation of the rules republished in, and prescribed 
by, this part include the full range of applicable criminal, civil and 
administrative sanctions for current DoD employees, including punishment 
under the UCMJ for military members. Many of the statutes that regulate 
the post-Government service employment activities of former or retired 
DoD employees also provide for specific criminal and administrative 
sanctions. This subpart sets out the requirements for reporting and 
inquiry to ensure that ethics-related laws and regulations are properly 
enforced and that appropriate administrative or disciplinary action is 
taken.



Sec. 84.38  Reporting procedures.

    (a) Reporting suspected violations. With the exception of the 
provisions of 41 U.S.C. 423 that are addressed in paragraph (c) of this 
section, DoD employees who suspect that a violation of this part has 
occurred shall report the matter to any of the following:
    (1) The DoD employee's agency designee;
    (2) The suspected violator's agency designee;
    (3) The head of the DoD component command or organization;
    (4) Any Ethics Counselor;
    (5) The DoD component's IG;
    (6) The DoD component's criminal investigative office; or
    (7) The DoD hotline or DoD component hotline.
    (b) Receipt of report. (1) DoD component investigative offices shall 
consult local Ethics Counselors as appropriate to ensure that up-to-date 
expertise is applied in the investigation of each suspected violations 
of this part in recognition of rapidly changing rules and statutes in 
the ethics area.
    (2) If a suspected violation is reported to some entity other than 
those named in paragraph (a)(4) through (a)(7) of this section, then the 
notified person shall promptly report the matter to his Ethics 
Counselor.
    (3) An Ethics Counselor who receives a report shall review the facts 
and, if the facts tend to support a violation, report the allegation to 
the appropriate investigative organization or, through the chain of 
command or supervision, to the head of the DoD component command or 
organization of the suspected violator. In addition, the Ethics 
Counselor must ensure that the following is accomplished:
    (i) If a violation of 18 U.S.C. 203, 205, 207, 208 or 209 is 
suspected, the matter shall be reported to the DoD component's criminal 
investigative organization. The investigative organization is 
responsible for investigating the allegation and notifying DoJ in 
accordance with DoD Directive 5525.7 \26\. In addition, the Ethics 
Counselor shall:
---------------------------------------------------------------------------

    \26\ See footnote 4 to Sec. 84.7(d).
---------------------------------------------------------------------------

    (A) Report to the DoD component DAEO as follows:
    (1) The name and position (optional) of the informant;
    (2) The name and position of the suspect;
    (3) The suspected offense;
    (4) The facts, as known or believed;
    (5) The status of any action being taken.

[[Page 487]]

    (B) File periodic follow-up reports with the DoD component DAEO 
until a final determination is made;
    (C) If the matter is referred to the DoJ or the U.S. Attorney, 
include OGE Form 202,\27\ ``Notification of Conflict of Interest 
Referral,'' January 1992, in the referral packet and send a copy to the 
DoD component DAEO for forwarding to OGE.
---------------------------------------------------------------------------

    \27\ Copies are available from U.S. Office of Government Ethics, 
1201 New York Avenue NW., Suite 500, Washington, DC 20005-3917.
---------------------------------------------------------------------------

    (ii) If a violation of 18 U.S.C. 201 or 281 is suspected, it shall 
be handled in the same manner as paragraph (b)(3)(i)(A) of this section 
except that OGE Form 202 is not used for referrals;
    (iii) If a violation of 10 U.S.C. 2397 is suspected, the Ethics 
Counselor shall inquire into the matter and, if substantiated, attempt 
to obtain compliance. If these efforts fail, the Ethics Counselor shall 
forward a written report to the GC, DoD through the DoD component DAEO 
with a recommendation for action by the Secretary of Defense pursuant to 
10 U.S.C. 2397(f);
    (A) The report need be filed only when the Ethics Counselor 
determines that there is sufficient evidence to believe that a violation 
has occurred;
    (B) The report shall include all relevant facts, a summary of 
witness statements, and a justification for the recommendation to refer 
or not to refer the violation for enforcement action.
    (iv) If a violation of 10 U.S.C. 2397a is suspected, the Ethics 
Counselor shall report the matter to the DoD component DAEO in the same 
manner as in paragraph (b)(3)(i)(A) of this section. If the Ethics 
Counselor believes that the Secretary of Defense should take action 
pursuant to 10 U.S.C. 2397a(d), the Ethics Counselor shall forward a 
written report to the GC, DoD through the DoD component DAEO with a 
recommendation for action;
    (A) The report need be filed only when the Ethics Counselor 
determines that there is sufficient evidence to believe that a violation 
has occurred;
    (v) If a violation of 10 U.S.C. 2397b is suspected, the Ethics 
Counselor shall report the matter to the DoD component DAEO in the same 
manner as in paragraph (b)(3)(i)(A) of this section;
    (vi) If it is suspected that an individual is receiving retired pay 
contrary to 37 U.S.C. 801, a report of the matter shall be made to the 
Defense Finance and Accounting Service. A copy of that report shall be 
sent to the DoD component DAEO;
    (vii) If a violation of 5 CFR part 2635 involving a loss to the 
Federal Government of $5,000 or more is suspected, the Ethics Counselor 
shall report the matter to the DoD component DAEO in the same manner as 
in paragraph (b)(3)(i)(A) of this section.
    (4) In addition, if any of the previous violations fall within a DoD 
component's procurement fraud program, the Ethics Counselor shall ensure 
that referrals, coordinations, and reports required by that program are 
accomplished. If the matter includes a suspected violation of the 
Gratuities Clause in a defense contract, the Ethics Counselor shall 
report the matter in accordance with DoD component procedures issued 
pursuant to 48 CFR 3.203. See paragraph (c) of this section.
    (5) For matters not handled within the DoD component's procurement 
fraud program, any civil or criminal referrals to DoJ or the local U.S. 
Attorney of violations of this part shall be coordinated with the DoD 
component DAEO. The DoD component DAEO shall be informed of referrals of 
violations of this part handled within the DoD component's procurement 
fraud program.
    (c) Violations of 41 U.S.C. 423.
    (1) Administrative sanctions. Suspected violations of 41 U.S.C. 423 
shall be processed in accordance with 48 CFR 3.104-11. See 41 U.S.C. 
423(h)(2).
    (2) Civil sanctions. Suspected civil violations may be referred 
through the DoD component DAEO to DoJ. See 41 U.S.C. 423(i).
    (3) Criminal sanctions. Suspected violations that involve the 
improper release of source selection information should be referred to 
the appropriate criminal investigative organization. See 41 U.S.C. 
423(j).
    (4) Reporting. Any suspected violation of the provisions of 41 
U.S.C. 423 shall be reported as soon as practicable to the appropriate 
contracting officer.

[[Page 488]]

See 41 U.S.C. 423(h)(1). Any actions taken as the result of the above 
referrals shall be reported to the DoD component DAEO in accordance with 
paragraph (b)(3)(i)(A) of this section.
[59 FR 13214, Mar. 21, 1994, as amended at 60 FR 20030, 20032, Apr. 24, 
1995]



Sec. 84.39  Administrative enforcement procedures.

    (a) Statutory authority. 10 U.S.C. 2397 and 2397a provide for 
administrative enforcement action and sanctions imposed by the Secretary 
of Defense against individuals and non-Federal entities not in 
compliance with these statutes.
    (b) Procedures for pursuing administrative action. All 
recommendations for enforcement of 10 U.S.C. 2397 and 2397a forwarded to 
the Secretary of Defense shall be initiated, investigated and processed 
in accordance with the requirements of the Administrative Procedure Act. 
See 5 U.S.C. 551 et seq.
    (c) Hearing examiners. In accordance with 5 U.S.C. 556, DoD shall 
appoint hearing examiners from within DoD to preside at the taking of 
evidence and provide recommendations to DoD as to final action.
    (d) Administrative sanctions. (1) DoD may take appropriate 
disciplinary action whenever indicated by the outcome of a case 
involving violations of 10 U.S.C. 2397 and 2397a by:
    (i) Imposing an administrative penalty, not to exceed $10,000;
    (ii) With respect to violations of 10 U.S.C. 2397a, imposing an 
additional administrative penalty of a particular amount if the 
individual is determined to have accepted or continued employment with a 
defense contractor during the ten-year period beginning with the date of 
separation from Federal Government service.
    (2) DoD may take other appropriate disciplinary action when 
indicated by the outcome of a case in accordance with the laws or 
regulations violated.
    (e) Judicial review. Any individual or non-Federal entity found in 
violation as described, and against whom an administrative sanction is 
imposed, may seek judicial review of the final administrative 
determination.



                           Subpart K--Training



Sec. 84.40  Office of Government Ethics regulation.

    See 5 CFR part 2638, ``Office of Government Ethics and Executive 
Agency Ethics Program Responsibilities.''



Sec. 84.41  DoD guidance.

    (a) Initial and annual ethics training. (1) Overall responsibility 
for initial and annual ethics training programs rests with the Head of 
each DoD component acting through his DAEO. The Head of the DoD 
component shall ensure that adequate resources are available to 
implement the requirements of this subpart. Support shall be provided by 
the DoD component legal and personnel offices, as necessary.
    (2) In the Military Departments, responsibility for implementation 
of ethics training programs rests with the heads of DoD component 
commands or organizations who shall ensure that ethics training is 
accomplished in accordance with this subpart.
    (3) Training shall be accomplished using material authorized by the 
DoD component DAEO or designee in meeting the requirements of this 
subpart. Ethics Counselors may augment this material with additional 
training material needed to address specific ethics issues peculiar to 
their organization.
    (4) DoD component Heads and DoD component DAEOs have the authority 
to require that DoD employees other than the ones covered by 5 CFR part 
2638 receive annual ethics training.
    (b) Procurment integrity training. (1) Each DoD component shall 
establish, or insure that its DoD employees have access to, a 
procurement integrity training program. Such program shall be the 
responsibility of the DoD component's official in charge of acquisition, 
with the assistance of the legal and personnel offices, under the 
overall guidance of the GC, DoD. The procurement integrity training 
program shall, at a minimum, comply with 48 CFR 3.104-12.
    (2) Heads of DoD components shall establish procedures to ensure 
that DoD employees receive (or have received) procurement integrity 
training and sign the Option Form (OF) 333,

[[Page 489]]

``Procurement Integrity Training Certificate for Procurement 
Officials,'' or similar certificate. Out-processing procedures shall 
also be established to ensure that DoD employees who leave an 
organization verify their status with regard to the restrictions 
contained in the Procurement Integrity Act (41 U.S.C. 423). An original 
copy of OF 333 or similar certificate should be placed in the 
appropriate personnel folder or other permanent file as determined by 
the DoD component. The individual executive the certificate should also 
retain a copy.
    (3) The following DoD employees should receive procurement integrity 
training and execute the required certificate:
    (i) All DoD employees who are members of the acquisition workforce;
    (ii) All DoD employees who are engaged in, or who might become 
engaged in, procurement official activities, as set forth in 41 U.S.C. 
423 and 48 CFR 3.104.
    (4) This requirement may be waived if the head of the DoD component 
command or organization determines that the DoD employee will not act as 
a procurement official while assigned to the organization.



Sec. 84.42  Procedures.

    (a) Combined initial and annual ethics training (CIAET) for calendar 
year 1993. (1) By December 31, 1993, all DoD employees, including those 
required to receive Annual Ethics Training (AET), non-appropriated fund 
instrumentality employees, and enlisted members, shall receive CIAET.
    (2) CIAET shall be accomplished in person by a Qualified Individual 
or by recording in the presence of a Qualified Individual, subject to 
the following exceptions:
    (i) If the DoD component DAEO determines it is impractical to 
accomplish CIAET in the presence of a Qualified Individual, DoD 
employees who are not required to receive AET may be trained by other 
means within the minimum training requirements set out by OGE in 5 CFR 
2638.703 provided that, with the exception of enlisted members, such 
training was completed by February 3, 1993;
    (ii) If the DoD component DAEO determines it is impractical to 
accomplish CIAET training in the presence of a Qualified Individual, 
then special Government employees and military officers serving on 
active duty fewer than 30 consecutive days annually may be trained by 
other means within the minimum training requirements set out by OGE in 5 
CFR 2638.704;
    (iii) If the DoD component DAEO makes, with the approval of OGE, a 
written determination that it is impractical to accomplish CIAET 
training in the presence of a Qualified Individual, then DoD employees 
who are required to receive AET may be trained by other means within the 
minimum training requirement set out by OGE in 5 CFR 2638.704. OGE 
requires the written determination to identify the particular DoD 
employees or groups of DoD employees concerned and the specific 
circumstances that make the presence of a Qualified Individual 
impractical (mere administrative inconvenience or cost to an agency, 
standing alone, shall not justify such determination).
    (3) The term ``immediate office'' as used in 5 CFR 2638.703 shall 
mean the local Ethics Counselor's.
    (4) CIAET shall be a minimum of one hour.
    (5) Those DoD employees who are required to receive AET will satisfy 
their 1993 annual ethics training obligation if they attended CIAET in 
1992 or 1993.
    (b) Initial ethics training (IET) for new DoD employees. (1) Within 
90 days of entering on duty, all DoD employees who did not receive 
CIAET, including those required to receive AET and enlisted members, 
shall receive IET for new DoD employees.
    (2) IET shall be accomplished in person by a Qualified Individual or 
by recording in the presence of a Qualified Individual, and such IET 
shall qualify as AET for the year the new DoD employees entered on duty, 
subject to the following exceptions:
    (i) If the DoD component DAEO determines it is impractical to 
accomplish IET in the presence of a Qualified Individual, DoD employees 
who are not required to receive AET may be trained by other means within 
the minimum

[[Page 490]]

training requirements set out by OGE in 5 CFR 2638.703;
    (ii) If the DoD component DAEO determines that it is impractical to 
accomplish IET in the presence of a Qualified Individual, then DoD 
employees who are required to receive AET may be trained by other means 
within the minimum training requirement set out by OGE in 5 CFR 2638.704 
provided that such DoD employees receive additional annual ethics 
training, either CIAET, IET or AET, if more than three months remain of 
the calendar year in which those DoD employees entered on duty.
    (3) The term ``immediate office'' as used in 5 CFR 2638.703 shall 
mean the local Ethics Counselor's office.
    (4) IET shall be a minimum of one hour.
    (c) Annual ethics training (AET). (1) Beginning in calendar year 
1994, all DoD employees who file an SF 278 or SF 450, contracting 
officers and procurement officials, shall receive ethics training 
annually.
    (2) AET shall be accomplished in person by a Qualified Individual or 
by recording in the presence of a Qualified Individual, subject to the 
following exceptions:
    (i) If the DoD component DAEO determines it is impractical to 
accomplish AET in the presence of a Qualified Individual, then special 
Government employees and military officers serving fewer than 30 
consecutive days annually, may be trained by other means within the 
minimum training requirements set out by OGE in 5 CFR 2638.704;
    (ii) If the DoD component DAEO makes a written determination that it 
is impractical to accomplish AET in the presence of a Qualified 
Individual, then DoD employees other than special Government employees 
and military members serving fewer than 30 days annually may be trained 
by other means within the minimum training requirement set out by OGE in 
5 CFR 2638.704. OGE requires the written determination to identify the 
particular DoD employees or groups of DoD employees concerned and the 
specific circumstances that make the presence of a Qualified Individual 
impractical (mere administrative inconvenience or cost to an agency, 
standing alone, shall not justify such determination).
    (3) AET shall be a minimum of one hour.
    (d) Annual ethics training plans. DoD agency (see definition of 
``agency'') ethics training plans for 1994 and subsequent ethics 
training plans in accordance with paragraphs (b) and (c) of this section 
shall be submitted by DoD component DAEOs or designees directly to OGE 
with copies furnished to SOCO. DoD components that are not agencies 
shall submit annual ethics training plans to SOCO for approval and 
inclusion in the ethics training plan SOCO submits to OGE.
    (e) Ethics training assistance. (1) SOCO shall make available ethics 
training for ethics trainers on an ongoing basis to ensure that 
Qualified Individuals are uniformly prepared to provide ethics training.
    (2) SOCO shall distribute ethics training material to all DoD 
component DAEOs for use in all types of ethics training.
    (3) Ethics training material shall include a training video with 
accompanying pamphlet, modular ethics training packages with copies of 
overhead slides, facilitator scripts, discussion hypotheticals, and 
handout material, and a programmed text. Other programmed texts, 
correspondence courses, and ethics computer games, and materials 
developed by DoD components will be distributed as they are developed.
    (4) In the interest of Federal Government efficiency and economy, 
DoD components that develop ethics training develop ethics training 
material independently shall provide a copy of the material to SOCO for 
distribution to other DoD components.
    (5) At a minimum, all ethics training shall include a review of part 
I of Executive Order 12674, 5 CFR part 2635 and this part.



Sec. 84.43  Responsibilities.

    (a) The Head of each DoD component shall:
    (1) Exercise personal leadership and take personal responsibility 
through

[[Page 491]]

the DoD component DAEO for establishing and maintaining the DoD 
component's ethics and procurement integrity training program and shall 
be personally accountable for the DoD component's compliance with the 
ethics and procurement integrity training requirements;
    (2) Provide sufficient resources to enable the DoD component DAEO to 
implement and administer the DoD component's ethics and procurement 
integrity training program.
    (b) Each DoD component DAEO shall:
    (1) Be responsible for the implementation and administration of 
ethics and procurement integrity training and ensure that necessary 
resources are available to accomplish such training;
    (2) Provide periodic ethics and procurement integrity training for 
Ethics Counselors;
    (3) Certify Qualified Individuals to conduct ethics training.
    (c) The head of each DoD component command or organization shall:
    (1) Exercise personal leadership and take personal responsibility 
for establishing and maintaining the command's or organization's ethics 
and procurement integrity training program;
    (2) Be personally accountable for the command's or organization's 
ethics and procurement integrity program;
    (3) Ensure that DoD employees of the command or organization attend 
required ethics and procurement integrity training; and
    (4) Direct administrative officers (or equivalent) of the command or 
organization to coordinate with the DoD component DAEO or designee to 
develop lists of all DoD employees of the command or organization who 
are required to receive ethics and procurement integrity training, 
schedule such training, annotate such lists to indicate when required 
training was accomplished and retain annotated lists for three years.
    (d) The DoD SOCO shall:
    (1) Make ethics and procurement integrity training for ethics 
trainers available on an ongoing basis to ensure that Qualified 
Individuals are uniformly prepared to provide such training;
    (2) Distribute ethics and procurement integrity training material to 
all DoD component DAEOs for use in all types of ethics and procurement 
integrity training;
    (3) Certify Qualified Individuals to conduct ethics training who may 
be used by DoD components.
    (e) The director of each DoD component personnel office shall, in 
coordination with the DoD component DAEO or designee, establish 
procedures in coordination with the DoD component DAEO or designee to 
inform new DoD employees of their obligation to receive ethics and 
procurement integrity training as required.
    (f) The administrative officer (or equivalent) of each DoD component 
command and organization shall:
    (1) In coordination with the DoD component DAEO or designee, develop 
lists of all DoD employees within the DoD component command or 
organization who are required to receive ethics and procurement 
integrity training;
    (2) In coordination with the DoD component DAEO or designee, ensure 
that DoD employees with the DoD component command or organization are 
scheduled to receive required ethics or procurement integrity training;
    (3) Annotate such lists to indicate when required training was 
accomplished and retain annotated lists for three years.
    (g) The DoD employees shall attend ethics and procurement integrity 
training as required.



                       Subpart L--Ethical Conduct



Sec. 84.44  Executive orders.

    (a) See Executive Order 12674.
    (b) See Executive Order 12834.



Sec. 84.45  Code of ethics for Government service.

    In accordance with 5 U.S.C. 7301 note, each agency shall display, in 
appropriate areas of any Federal Government building in which at least 
20 civilians are regularly employed by the agency, copies of the 
following Code of Ethics for Government Service:

                  Code of Ethics for Government Service

    Any person in Government service should:

[[Page 492]]

    I. Put loyalty to the highest moral principles and to country above 
loyalty to persons, party, or Government department.
    II. Uphold the Constitution, laws, and regulations of the United 
States and of all governments therein and never be a party to their 
evasion.
    III. Give a full day's labor for a full day's pay; giving earnest 
effort and best thought to the performance of duties.
    IV. Seek to find and employ more efficient and economical ways of 
getting tasks accomplished.
    V. Never discriminate unfairly by the dispensing of special favors 
or privileges to anyone, whether for remuneration or not; and never 
accept, for himself or herself or for family members, favors or benefits 
under circumstances which might be construed by reasonable persons as 
influencing the performance of governmental duties.
    VI. Make no private promises of any kind binding upon the duties of 
office, since a Government employee has no private word which can be 
binding on public duty.
    VII. Engage in no business with the Government, either directly or 
indirectly, which is inconsistent with the conscientious performance of 
governmental duties.
    VIII. Never use any information gained confidentially in the 
performance of governmental duties as a means of making private profit.
    IX. Expose corruption wherever discovered.
    X. Uphold these principles, ever conscious that public office is a 
public trust.



Sec. 84.46  DoD human goals.

    On April 17, 1990, DoD established human goals. See Appendix C of 
this part.



Sec. 84.47  Ethical values.

    (a) General. Ethics are standards by which one should act based on 
values. Values are core beliefs such as duty, honor, and integrity that 
motivate attitudes and actions. Not all values are ethical values 
(integrity is; happiness is not). Ethical values relate to what is right 
and wrong and thus take precedence over non-ethical values when making 
ethical decisions. DoD employees should carefully consider ethical 
values when making decisions as part of official duties.
    (b) Primary ethical values--(1) Honesty. Being truthful, 
straightforward and candid are aspects of honesty.
    (i) Truthfulness is required. Deceptions are easily uncovered and 
usually are. Lies erode credibility and undermine public confidence. 
Untruths told for seemingly altruistic reasons (to prevent hurt 
feelings, to promote good will, etc.) are nonetheless resented by the 
recipients.
    (ii) Straightforwardness adds frankness to truthfulness and is 
usually necessary to promote public confidence and to ensure effective, 
efficient conduct of Federal Government operations. Truths that are 
presented in such a way as to lead recipients to confusion, 
misinterpretation or inaccurate conclusions are not productive. Such 
indirect deceptions can promote ill-will and erode openness, especially 
when there is an expectation of frankness.
    (iii) Candor is the forthright offering of unrequested information. 
It is necessary in accordance with the gravity of the situation and the 
nature of the relationships. Candor is required when a reasonable person 
would feel betrayed if the information were withheld. In some 
circumstances, silence is dishonest, yet in other circumstances, 
disclosing information would be wrong and perhaps unlawful.
    (2) Integrity. Being faithful to one's convictions is part of 
integrity. Following principles, acting with honor, maintaining 
independent judgment and performing duties with impartiality help to 
maintain integrity and avoid conflicts of interest and hypocrisy.
    (3) Loyalty. There are many synonyms for loyalty: fidelity, 
faithfulness, allegiance, devotion and fealty. Loyalty is the bond that 
holds the nation and the Federal Government together and the balm 
against dissension and conflict. It is not blind obedience or 
unquestioning acceptance of the status quo. Loyalty requires careful 
balancing among various interests, values and institutions in the 
interest of harmony and cohesion.
    (4) Accountability. DoD employees are required to accept 
responsibility for their decisions and the resulting consequences. This 
includes avoiding even the appearance of impropriety because appearances 
affect public confidence. Accountability promotes careful, well thought-
out decision-making and limits thoughtless action.
    (5) Fairness. Open-mindedness and impartiality are important aspects 
of fairness. DoD employees must be committed to justice in the 
performance of

[[Page 493]]

their official duties. Decisions must not be arbitrary, capricious or 
biased. Individuals must be treated equally and with tolerance.
    (6) Caring. Compassion is an essential element of good government. 
Courtesy and kindness, both to those we serve and to those we work with, 
help to ensure that individuals are not treated solely as a means to an 
end. Caring for others is the counterbalance against the temptation to 
pursue the mission at any cost.
    (7) Respect. To treat people with dignity, to honor privacy and to 
allow self-determination are critical in a government of diverse people. 
Lack of respect leads to a breakdown of loyalty and honesty within a 
government and brings chaos to the international community.
    (8) Promise keeping. No government can function for long if its 
commitments are not kept. DoD employees are obligated to keep their 
promises in order to promote trust and cooperation. Because of the 
importance of promise keeping, it is critical that DoD employees only 
make commitments that are within their authority.
    (9) Responsible citizenship. It is the civil duty of every citizen, 
and especially DoD employees, to exercise discretion. Public servants 
are expected to engage personal judgment in the performance of official 
duties within the limits of their authority so that the will of the 
people is respected in accordance with democratic principals. Just must 
be pursued and injustice must be challenged through accepted means.
    (10) Pursuit of excellence. In public service, competence is only 
the starting point. DoD employees are expected to set an example of 
superior diligence and commitment. They are expected to be all they can 
be and to strive beyond mediocrity.



Sec. 84.48  Ethical decisionmaking.

    (a) General. Virtually every one in Federal Government service makes 
job-related decisions. Some of these decisions may seem more important 
than others, but all should be preceded by a consideration of ethical 
ramifications. In some cases, the ethical element of decision-making 
will go no further than to consciously acknowledge that there are no 
significant ethical ramifications to consider. In other cases, in-depth 
ethical analysis is called for in addition to application of ethics 
rules. The following plan for decision-making ensures careful review of 
ethical consequences when there are alternative solutions that seem 
proper under existing laws and regulations. DoD employees should 
consider incorporating the following plan in official decisionmaking.
    (b) Ethical decisionmaking plan.
    (1) Define the problem. Proceed from a general statement of the 
problem to specific statements of the decisions to be made. As you take 
the following steps, such as identifying goals and naming stakeholders 
new problems or needed decisions may become apparent. Be willing to add 
these to your problem list as you go.
    (2) Identify the goal(s). Proceed from a general statement of an end 
result both long term and short term. Be prepared to add to this list as 
you take the following steps. Goals are something to strive toward. They 
are statements of the best possible results. The very best is not always 
achieved for everyone. Many problems do not allow for ``win/win'' 
outcomes. Be prepared to fall somewhat short of some goals for the sake 
of ethics and other considerations.
    (3) List applicable law or regulations. Laws and regulations are 
basic constraints within which official decisions are made. Until all 
relevant laws and regulations are considered, ethical decision-making is 
impossible. Although it is conceivable that an ethical decision could 
violate a law or regulation, such circumstances are rare.
    (4) List the ethical values at stake. Listing the ethical values at 
stake can awaken you to problems and goals that you may not have 
otherwise considered. It may alert you to stakeholders you may not have 
recognized. Listing the values reminds you of your commitment to them at 
a time when stress of the problem may cause you to forget.

[[Page 494]]

    (5) Name all the stakeholders: A stakeholder is anyone who is likely 
to be affected by a decision. Many stakeholders will be apparent because 
of the previous steps you already followed. More will occur to you as 
you give the matter a few minutes of thought. Do not forget to include 
yourself and the people who may depend on you for support, both at work 
and at home. As you list the stakeholders, try to note the way your 
decision could affect them. In other words, name what is at stake for 
the stakeholder.
    (6) Gather additional information. This step is frequently 
overlooked. The stress from the problem urges speedy solutions. However, 
hasty decisions usually create problems of their own. Take the time to 
gather all necessary information. Ask questions, demand proof when 
appropriate, check your assumptions.
    (7) State all feasible solutions. By this time, some feasible 
solutions will have presented themselves. Others may be found by sharing 
the lists and information you have pulled together and ``brain 
storming.'' As you state the feasible solutions, note which stakeholders 
could be affected and what might be gained or lost.
    (8) Eliminate unethical options. There may be solutions that seem to 
resolve the problem and reach the goal but which are clearly unethical. 
Remember that short term solutions are not worth sacrificing our 
commitment to ethics. The long term problems of unethical solutions will 
not be worth the short term advantages. Eliminate the unethical 
solutions.
    (9) Rank remaining solutions. Other solutions may not be clearly 
unethical but may be questionable. You may have to rely on intuition or 
``gut feelings'' to weed out these solutions. Put these possible 
solutions at the bottom of your list. Rank the remaining solutions, 
which are all ethical ones, in order of how close they bring you to your 
goal and solve the problem.
    (10) Commit to and implement the best ethical solution. Commitment 
and implementation are vital to the ethical decision-making process. 
Determining which solution is the best ethical one is a meaningless 
exercise unless implementation of the ethical solution follows. If the 
right decision is not implemented, the door is left wide open for others 
to implement unethical solutions.

                  Appendix A to Part 84--Digest of Laws

                    Section 1. DoD-specific Statutes

    (a) Synopsis of laws. DoD employees and former DoD employees are 
cautioned that the descriptions of the laws and regulations in this part 
should not be the only source relied upon to make decisions regarding 
their activities. Although the descriptions do provide general 
guidelines, the descriptions are not exhaustive and restrictions are 
dependent on the specific facts in a particular case. Accordingly, DoD 
employees and former DoD employees are encouraged to discuss specific 
cases with a DoD component Ethics Counselor (no attorney-client 
privilege) or with private counsel.
    (b) 10 U.S.C. 2397a, ``Requirements Relating to Private Employment 
Contacts Between Certain DoD Procurement Officials and Defense 
Contractors.''
    (1) This statute applies to civilian DoD employees at pay rates of 
GS/GM-11 or above and to military officers in grades 0-4 or above. If 
such an individual has participated in the performance of a procurement 
function in connection with a DoD awarded defense contract and is 
contacted by the defense contractor to whom the defense contract was 
awarded regarding future employment opportunities with the defense 
contractor, the individual must:
    (i) Promptly report the contact to his supervisor and to the DoD 
component DAEO; and
    (ii) Disqualify himself from all participation in the performance of 
procurement functions relating to contracts of the defense contractor.
    (2) A DoD employee is not required to report an initial contact with 
a defense contractor or disqualify himself if he terminates the contact 
immediately and rejects any offer of employment. The individual must 
make a report and disqualify himself, however, if subsequent contacts 
are made.
    (c) 10 U.S.C. 2397, ``Employees or Former Employees of Defense 
Contractors: Reports.'' This statute requires all former civilian DoD 
employees GS/GM-13 or above, or military officers 0-4 or above, to file 
DD Form 1787 \1\ for a period of two-years after leaving Federal 
Government service, if the former DoD employee is employed with a 
defense contractor who had been awarded $10 million in defense

[[Page 495]]

contracts during the year preceding employment of the former DoD 
employee, and the former DoD employee receives at least $25,000 a year 
($12 per hour) from the defense contractor.
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    \1\ Copies are available from DoD Standards of Conduct Office, 
Office of General Counsel, 1600 Defense Pentagon, Washington, DC 20301-
1600.
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    (d) 10 U.S.C. 2397b, ``Certain Former DoD Procurement Officials: 
Limitations on Employment by Contractors''. This statute imposes a two 
year prohibition on former civilian DoD employees GS/GM-13 and above, 
and former military officers 0-4 and above, from accepting more than 
$250 in payment, gift, benefit, reward, favor, or gratuity (i.e., 
compensation) from defense contractors who had defense contracts in a 
total amount greater than $10 million during the fiscal year preceding 
the fiscal year that such compensation was accepted, if the individual:
    (1) Spent the majority of his working days during the two-year 
period prior to leaving Federal Government service performing a 
procurement function at a site or plant owned or operated by the defense 
contractor; or
    (2) Performed procurement functions relating to a major system, on a 
majority of the individual's working days during the two-year period 
prior to leaving Federal Government service, and in the performance of 
those functions participated personally and substantially in a manner 
involving decision-making responsibilities, through contact with the 
defense contractor; or
    (3) In the case of former DoD employees, Senior Executive Service 
and above, and former military officers 0-7 and above, acted as a 
primary representative of the United States during the two-year period 
prior to leaving Federal Government service, in the negotiation of a 
defense contract in an amount in excess of $10 million with the defense 
contractor, or in the negotiation of an unresolved claim in excess of 
$10 million.
    (e) 18 U.S.C. 281, ``Restriction on Retired Military Officers 
Regarding Certain Matters Affecting the Government.'' (1) This statute 
prohibits a retired military officer of the Armed Forces from accepting 
any compensation, for a period of two-years after release from active 
duty, for the representation of any individual in the sale of anything 
to the United States through the Military Department from which the 
military officer is retired.
    (2) The statute also prohibits a retired military officer, during 
the two-year period following the military officer's release from active 
duty, from prosecuting or assisting in the prosecution of any claim 
against the United States involving the Military Department from which 
the military officer is retired, or involving any subject matter with 
which the military officer was directly connected while in an active 
duty status.

      Section 2. Other Laws Related to Standards of Ethical Conduct

    (a) OGE digest. Other ethics statutes are summarized in 5 CFR 
2635.801(d) and 902.
    (b) Related statues. Engaging in the following activities may 
subject current and former DoD employees to criminal and/or other 
penalties:
    (1) Aiding, abetting, counseling, commanding, inducing, or procuring 
another to commit a crime under any criminal statute (18 U.S.C. 2);
    (2) Concealing or failing to report to proper authorities the 
commission of a felony under any criminal statute if the individual knew 
of the actual commission of the crime (18 U.S.C. 4);
    (3) Conspiring with one or more persons to commit a crime under any 
criminal statute or to defraud the United States, if any party to the 
conspiracy does any act to further the object of the conspiracy (18 
U.S.C. 371);
    (4) Misuse of a Federal Government vehicle (31 U.S.C. 1344 and 
1349(b));
    (5) Interference in an examination or personnel action in connection 
with Federal Government employment (18 U.S.C. 1917);
    (6) Conversion of Federal Government property (18 U.S.C. 641);
    (7) Private use of public money (18 U.S.C. 653), embezzlement of the 
money or property of another individual in the possession of a DoD 
employee by reason of his Federal Government employment (18 U.S.C. 654);
    (8) Certain political activities (5 U.S.C. 7321-7327, 18 U.S.C. 600-
603 and 606-607 apply to civilian DoD employees, and DoD Directive 
1344.10 \2\ applies to military members);
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    \2\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
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    (9) Failing to register under the Foreign Agents Registration Act of 
1983 and acting as an agent of a foreign principal when required to 
register (18 U.S.C. 219);
    (10) Soliciting contributions for gifts or giving gifts to 
superiors, or accepting gifts from subordinates (5 U.S.C. 7351) applies 
to civilians; regulations set out in 5 CFR 2635.301 through 2635.304 
apply to both military and civilian DoD employees;
    (11) Accepting, without statutory authority, any present, emolument, 
office or title, or employment of any kind, from any king, prince, or 
foreign state without the consent of the Congress; this restriction 
applies to any person holding any office or profit in or trust of the 
Federal Government, including all retired military members and regular 
enlisted members (Article I, Section 9, Clause 8, of the Constitution of 
the United States; exceptions to this restriction are at 37 U.S.C. 908);
    (12) Union activities of military members (10 U.S.C. 976);

[[Page 496]]

    (13) Violating merit system principles (5 U.S.C. 2301).

          Appendix B to Part 84--Excerpts From DoD Publications

  Section 1. Department of Defense Waiver in Accordance With 18 U.S.C. 
                                 208(b)

    18 U.S.C. 208(b) permits agencies to grant an exemption in writing 
from 18 U.S.C. 208(a) if the outside financial interest is deemed in 
advance not substantial enough to affect the integrity of Government 
services. Categories of financial interests may also be made 
nondisqualifying by a general regulation published in the Federal 
Register. Shares of a widely held, diversified mutual fund or regulated 
investment company have been exempted as being too remote or 
inconsequential to affect the integrity of the services of Government 
personnel.

 Section 2. Department of the Army Waiver in Accordance With 18 U.S.C. 
                                 208(b)

    A conflict does not exist when [Department of the Army] DA personnel 
hold shares of a widely held, diversified mutual fund or regulated 
investment company. In accordance with the provisions of 18 U.S.C 
208b(2), such holdings are exempted as being too remote or 
inconsequential to affect the integrity of the services of Government 
personnel.

 Section 3. Department of the Navy Waiver in Accordance With 18 U.S.C. 
                                 208(b)

    (b) Under 18 U.S.C. 208(b)(2), [Department of the Navy] DON 
personnel need not be disqualified from participating in matters in 
which they have the following financial interests:
    (1) Shares of widely held and diversified mutual, money market, 
trust, or similar funds offered for sale by a financial institution or 
by a regulated investment company;
    (2) Deposits in and loans from banks or other financial 
institutions, provided they are at customary and generally available 
terms and conditions; and
    (3) Federal, State, municipal, or local government bonds, regardless 
of the value of such interests.
    (b) DON personnel who are members or officers of non-governmental 
associations or organizations must avoid activities on behalf of such 
groups that are incompatible with their official Government positions. 
Under certain circumstances, holding a position in a private association 
or organization or undertaking activities on its behalf could conflict 
with one's official duties. Holding, however, a position in a private, 
non-profit association or other organization that fosters and promotes 
the general interests of the naval service and which depends, in part, 
upon the voluntary efforts of DON personnel acting in their private 
capacities for leadership, is unlikely to affect the integrity of the 
services of such personnel. Under 18 U.S.C. 208(b)(2), such individuals 
are not disqualified from rendering advice or making recommendations 
within their chains of command on particular matters affecting such 
organizations if:
    (1) They disclose their interest or affiliation to their supervisor 
prior to rendering advice or making recommendations;
    (2) The final decision is made by higher authority; and
    (3) The individual's commander does not determine that 
disqualification is otherwise required by the best interest of DON or of 
the United States.

  Section 4. Department of the Air Force Waiver in Accordance With 18 
                              U.S.C. 208(b)

    Non-Disqualifying Financial Interest. Air Force personnel need not 
disqualify themselves if the financial holdings are in shares of a 
widely held diversified mutual fund or regulated investment company. The 
indirect interests in business entities of these financial holdings come 
from ownership by the fund or investment company of stocks in business 
entities. They are hereby exempted from the requirements of 18 U.S.C. 
208(a), according to 18 U.S.C. 208(B)(2), as too remote or 
inconsequential to affect the integrity of the government officers' or 
employees' services.

                 Appendix C to Part 84--DoD Human Goals

   Department of Defense, Human Goals, The Attainment of These Goals 
                         Requires That We Strive

    To attract to the Department of Defense people with ability, 
dedication, and capacity for growth;
    To provide opportunity for everyone, military and civilian, to rise 
to as high a level of responsibility as possible, dependent only on 
individual talent and diligence;
    To assure that equal opportunity and safety programs are an integral 
part of readiness;
    To make military and civilian service in the Department of Defense a 
model of equal opportunity for all regardless of race, color, sex, 
religion, or national origin;
    To provide equity in civilian employment for older persons and 
disabled individuals and to provide a safe environment that is 
accessible to and usable by them;
    To hold those who do business with or receive assistance from the 
Department to full compliance with its policies of equal opportunity and 
safety;
    To help each service member in leaving the service to readjust to 
civilian life;

[[Page 497]]

    To provide a safe and healthful work environment, free from 
recognized occupational hazards for all personnel; and
    To contribute to the improvement of our society, including its 
disadvantaged members, by greater utilization of our human and physical 
resources while maintaining full effectiveness in the performance of our 
primary mission.



PART 85--HEALTH PROMOTION--Table of Contents




Sec.
85.1  Purpose.
85.2  Applicability and scope.
85.3  Definitions.
85.4  Policy.
85.5  Responsibilities.
85.6  Procedures.

    Authority: 5 U.S.C. 301.

    Source: 53 FR 33123, Aug. 30, 1988, unless otherwise noted.



Sec. 85.1  Purpose.

    (a) This part establishes a health promotion policy within the 
Department of Defense to improve and maintain military readiness and the 
quality of life of DoD personnel and other beneficiaries.
    (b) This part replaces 32 CFR part 203 and establishes policy on 
smoking in DoD occupied buildings and facilities.



Sec. 85.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense 
(OSD), the Military Departments, and the Defense Agencies.
    (b) It is directed to all military personnel and retirees, their 
families, and, where specified, to civilian employees.



Sec. 85.3  Definitions.

    Health Promotion. Any combination of health education and related 
organizational, social, economic or health care interventions designed 
to facilitate behavioral and environmental alterations that will improve 
or protect health. It includes those activities intended to support and 
influence individuals in managing their own health through lifestyle 
decisions and selfcare. Operationally, health promotion includes smoking 
prevention and cessation, physical fitness, nutrition, stress 
management, alcohol and drug abuse prevention, and early identification 
of hypertension.
    Lifestyle. The aggregated habits and behaviors of individuals.
    Military Personnel. Includes all U.S. military personnel on active 
duty, U.S. National Guard or Reserve personnel on active duty, and 
Military Service Academy cadets and midshipmen.
    Self-Care. Includes acceptance of responsibility for maintaining 
personal health, and decisions concerning medical care that are 
appropriate for the individual to make.
    Target Populations. Military personnel, retirees, their families, 
and civilian employees.



Sec. 85.4  Policy.

    It is DoD policy to:
    (a) Encourage military personnel, retirees, their families and 
civilian employees to live healthy lives through an integrated, 
coordinated and comprehensive health promotion program.
    (b) Foster an environment that enhances the development of healthful 
lifestyles and high unit performance.
    (c) Recognize the right of individuals working or visiting in DoD 
occupied buildings to an environment reasonably free of contaminants.
    (d) Disallow DoD Components' participation with manufacturers or 
distributors of alcohol or tobacco products in promotional programs, 
activities, or contests aimed primarily at DoD personnel. This does not 
prevent accepting support from these manufacturers or distributors for 
worthwhile programs benefiting military personnel when no advertised 
cooperation between the Departmment of Defense and the manufacturer or 
distributor directly or indirectly identifying an alcohol or tobacco 
product with the program is required. Neither does it prevent the 
participation of military personnel in programs, activities, or contests 
approved by the manufacturers or distributors of such products when that 
participation is incidental to general public participation.



Sec. 85.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Health Affairs) (ASD(HA)) 
shall coordinate and monitor the DoD health promotion program in 
accordance with this part, executing this responsibility

[[Page 498]]

in cooperation with the Assistant Secretary of Defense (Force Management 
and Personnel) and the Assistant Secretary of Defense (Reserve Affairs). 
The Office of the Assistant Secretary of Defense (Health Affairs) 
(ASD(HA)) shall:
    (1) Establish and chair the Health Promotion Coordinating Committee 
comprised of representatives of the Office of the Assistant Secretary of 
Defense (Force Management and Personnel) (OASD(FM&P)), Office of the 
Assistant Secretary of Defense (Acquisition and Logistics) (OASD(A&L)), 
the Office of the Assistant Secretary of Defense (Reserve Affairs) 
(OASD(RA)), each Military Service, and such other advisors as the 
OASD(HA) considers appropriate.
    (2) Facilitate exchanges of technical information and problem 
solving within and among Military Services and Defense Agencies.
    (3) Provide technical assistant, guidance and consultation.
    (4) Coordinate health data collection efforts to ensure 
standardization and facilitate joint studies across DoD components.
    (5) Review dietary standards for DoD dining facilities as specified 
in DoD Directive 3235.2 \1\
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    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, Attn: Code 1062, 5801 Tabor Avenue, 
Philadelphia, PA 19120.
---------------------------------------------------------------------------

    (b) The Assistant Secretary of Defense (Force Management and 
Personnel) (ASD(FM&P)) shall, in collaboration with the ASD(HA), 
coordinate and monitor relevant aspects of the health promotion program. 
These include:
    (1) Use of tobacco products in DoD occupied facilities.
    (2) Operation of health promotion and screening programs at the 
worksite and in Professional Military Education, DoD Dependents Schools, 
and section 6 schools.
    (3) Dietary regulation of DoD snack concessions, and vending 
machines.
    (4) Reduction of stress in work setting.
    (5) Designate two representatives to the Health Promotion 
Coordinating Committee.
    (c) The Assistant Secretary of Defense (Reserve Affairs) (OASD(RA)) 
shall:
    (1) Coordinate and monitor relevant aspects of the health promotion 
program as it pertains to National Guard and Reserve Personnel.
    (2) Designate a representative to the Health Promotion Coordinating 
Committee.
    (d) The Secretaries of the Military Departments shall:
    (1) Develop a comprehensive health promotion program plan for their 
respective Service(s).
    (2) Establish and operate an integrated, coordinated and 
comprehensive health promotion program as prescribed by this Directive.
    (3) Designate from their respective Service(s) a health promotion 
coordinator who shall also serve as representative to the Health 
Promotion Coordinating Committee.
    (4) Evaluate the effectiveness of their respective health promotion 
program(s).
    (e) The Directors of Defense Agencies shall develop and implement 
health promotion plans and programs for their civilian employees in 
accordance with this part.
    (f) The Assistant Secretary of Defense (Comptroller) (ASD(C)) shall 
develop and implement a health program promotion for OSD civilian 
employees.



Sec. 85.6  Procedures.

    (a) Each Military Service shall establish a health promotion program 
coordinator to serve as the focal point for all health promotion program 
issues and to integrate the activities of the medical and personnel 
departments.
    (b) A Health Promotion Coordinating Committee shall be established 
to enhance communication among the Military Services, recommend joint 
policy and program actions, review program implementation, and recommend 
methodologies and procedures for program evaluation. The Committee shall 
be chaired by the Assistant Secretary of Defense (Health Affairs) 
(ASD(HA)) or designee. Additional members shall include two 
representatives from the Office of the Assistant Secretary of Defense 
(Force Management and Personnel); one representative from the Office of 
the Assistant Secretary of Defense (Reserve Affairs); one representative

[[Page 499]]

from the office of the Assistant Secretary of Defense (Acquisition & 
Logistics); and the health promotion coordinator from each Military 
Service.
    (c) Each Component shall prepare a plan for the implementation of a 
comprehensive health promotion program that includes specific objectives 
(planned accomplishments) with measurable action steps. The plan shall 
address all of the program elements identified in the definition of 
health promotion for each group in the target populations. The plan 
shall consider workload, systems support, and training needs of 
individuals charged with responsibility at all organizational levels.
    (d) Health promotion plans and programs shall address smoking 
prevention and cessation, physical fitness, nutrition, stress 
management, alcohol and drug abuse, and early identification of 
hypertension.
    (1) Smoking prevention and cessation programs shall aim to create a 
social environment that supports abstinence and discourage use of 
tobacco products, create a healthy working environment, and provide 
smokers with encouragement and professional assistance in quitting. In 
addition to these aims, smoking prevention and cessation programs shall 
include the following elements.
    (i) Smoking shall be permitted in buildings only to the extent that 
it does not endanger the life or property, or risk impairing nonsmokers' 
health.
    (ii) The smoking of tobacco products within DoD occupied space shall 
be controlled in accordance with the following guidelines:
    (A) Smoking shall be prohibited in auditoriums, conference rooms and 
classrooms. No Smoking signs shall be prominently displayed, and 
ashtrays shall not be permitted. Receptacles may be placed at entrances 
so that visitors may dispose of lighted smoking material when entering a 
nonsmoking area.
    (B) Nonsmoking areas shall be designated and posted in all eating 
facilities in DoD occupied buildings. Smoking areas shall be permitted 
only if adequate space is available for nonsmoking patrons and 
ventilation is adequate to provide them a healthy environment.
    (C) Elevators shall be designated as nonsmoking areas.
    (D) Smoking shall be prohibited in official buses and vans.
    (E) Within the confines of medical treatment facilities, smoking 
shall be restricted to private offices and specially designated areas. 
Smoking by patients shall be limited to specially designated areas, and 
health care providers shall not smoke in the presence of patients while 
performing their duties. Smoking is permitted in visitor waiting areas 
only where space and ventilation capacities permit division into smoking 
and nonsmoking sections.
    (F) Smoking shall not be permitted in common work areas shared by 
smokers and nonsmokers unless adequate space is available for nonsmokers 
and ventilation is adequate to provide them a healthy environment. Where 
feasible, smoking preference should be considered when planning 
individual work stations so that smoking and nonsmoking areas may be 
established.
    (G) When individual living quarters are not available and two or 
more individuals are assigned to one room, smoking and nonsmoking 
preferences shall be considered in the assignment of rooms.
    (H) Smoking by students attending DoD Dependents Schools or section 
6 schools shall not be permitted on school grounds except as provided by 
policy regulations promulgated by the Director, DoDDS. Faculty and staff 
shall smoke only in specifically designated areas and shall not smoke in 
the presence of students.
    (iii) Installations shall assess the current resources, referral 
mechanisms, and need for additional smoking cessation programs. 
Occupational health clinics shall consider the feasibility of smoking 
cessation programs for civilian employees or, at a minimum, be able to 
refer employees to such programs. While smoking cessation should be 
encouraged, care shall be taken to avoid coercion or pressure on 
employees to enter smoking cessation programs against their will. 
Smoking prevention programs shall be

[[Page 500]]

made available in DoD Dependents Schools and section 6 schools.
    (iv) Information on the health consequences of smoking shall be 
incorporated with the information on alcohol and drug abuse provided to 
military personnel at initial entry and at permanent change of station 
as specified in 32 CFR part 62a. At initial entry, nonsmokers shall be 
encouraged to refrain from smoking. Smokers shall be encouraged to quit 
and be offered assistance in quitting.
    (v) As part of routine physical and dental examinations and at other 
appropriate times, health care providers should be encouraged to inquire 
about the patient's tobacco use, including use of smokeless tobacco 
products; to advise him or her of the risks associated with use, the 
health benefits of abstinence, and of where to obtain help to quit.
    (vi) Appropriate DoD health care providers should advise all 
pregnant smokers of the risks to the fetus.
    (vii) The Military Services shall conduct public education programs 
appropriate to various target audiences on the negative health 
consequences of smoking.
    (2) Physical fitness programs shall aim to encourage and assist all 
target populations to establish and maintain the physical stamina and 
cardiorespiratory endurance necessary for better health and a more 
productive lifestyle. In addition to the provisions of DoD Directive 
1308.1 \2\ and Secretary of Defense Memorandum physical fitness programs 
shall include the following elements.
---------------------------------------------------------------------------

    \2\ See footnote 1 to Sec. 85.5(a)(5).
---------------------------------------------------------------------------

    (i) Health professionals shall consider exercise programs conducive 
to improved health, and encourage appropriate use by patients. For 
military personnel, recommendations shall accord with military readiness 
requirements.
    (ii) Commanders and managers should assess the availability of 
fitness programs at or near work sites and should consider integrating 
fitness regimens into normal work routines for military personnel as 
operational commitments allow.
    (iii) The chain of command should encourage and support community 
activities that develop and promote fitness among all target 
populations. Activities should be designed to encourage the active 
participation of many people rather than competition among a highly 
motivated few.
    (3) Nutrition programs shall aim to encourage and assist all target 
populations to establish and maintain dietary habits contributing to 
good health, disease prevention, and weight control. Weight control 
involves both nutrition and exercise, and is addressed in part in DoD 
Directive 1308.1. Nutrition programs include efforts not only to help 
individuals develop appropriate dietary habits, but also to modify the 
environment so that it encourages and supports appropriate habits. 
Additionally, nutrition programs shall include the following elements.
    (i) Nutritional advice and assistance shall be provided by 
appropriate DoD health care professionals to military personnel, 
retirees, and family members.
    (ii) In military and civilian dining facilities, where feasible, 
calorie information and meals with reduced amounts of fat, salt, and 
calories shall be made readily available.
    (iii) Snack concessions and vending machines, when feasible, shall 
offer nutritious alternatives, such as fresh fruit, fruit juices, and 
whole grain products.
    (iv) Public information campaigns shall be conducted by the Military 
Services to alert all target populations about the relationship between 
diet and risk of chronic diseases.
    (4) Stress management programs shall aim to reduce environmental 
stressors and help target populations cope with stress. Additionally, 
stress management programs shall include the following elements.
    (i) Commanders should develop leadership practices, work policies 
and procedures, and physical settings that promote productivity and 
health for military personnel and civilian employees.
    (ii) Health and fitness professionals are encouraged to advise 
target groups on scientifically supported stress management techniques.

[[Page 501]]

    (iii) The topic of stress management should be considered for 
integration into the curricula at appropriate Professional Military 
Education programs and in the DoD Dependents Schools and section 6 
schools to familiarize students with scientifically supported concepts 
of stress management for day-to-day problems, life transitions, and life 
crises.
    (5) Alcohol and drug abuse prevention programs shall aim to prevent 
the misuse of alcohol and other drugs, eliminate the illegal use of such 
substances, and provide counseling or rehabilitation to abusers who 
desire assistance in accordance with the provisions of 32 CFR parts 62a 
and 62 and DoD Instruction 1010.6 \3\ Additionally, alcohol and drug 
abuse prevention programs shall include the following elements.
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 85.5(a)(5).
---------------------------------------------------------------------------

    (i) Appropriate DoD health care professionals shall advise all 
pregnant patients and patients contemplating pregnancy about the risks 
associated with the use of alcohol and other drugs during pregnancy.
    (ii) The Military Services shall conduct public education programs 
appropriate to various target audiences. Programs should include such 
topics as alcohol and drug use and pregnancy, driving while intoxicated, 
and adolescent alcohol and drug abuse.
    (6) Hypertension prevention programs shall aim to identify 
hypertension early, provide information regarding control and lifestyle 
factors, and provide treatment referral where indicated. Early 
identification of hypertension programs shall include the following 
elements.
    (i) Hypertension screening shall be provided as part of all medical 
examinations and the annual dental examination for active duty service 
members. Screening shall also be provided to other beneficiaries, 
excluding those in the Children's Preventive Dentistry Program, at the 
time of their original request for care. Patients with abnormal 
screening results shall receive appropriate medical referrals.
    (ii) Each DoD medical facility should periodically offer mass 
hypertension screening to encourage beneficiaries to monitor their blood 
pressure regularly.
    (iii) Occupational health clinics shall make hypertension screening 
readily available to civilian employees, and shall encourage employees 
to use this service.
    (iv) Public information campaigns emphasizing the dangers of 
hypertension and the importance of periodic hypertension screening and 
dietary regulation shall be conducted.



PART 86--CRIMINAL HISTORY BACKGROUND CHECKS ON INDIVIDUALS IN CHILD CARE SERVICES--Table of Contents




Sec.
86.1  Purpose.
86.2  Applicability.
86.3  Definitions.
86.4  Policy.
86.5  Responsibilities.
86.6  Procedures.

Appendix A to Part 86--Criminal History Background Check Procedures
Appendix B to Part 86--Criteria For Criminal History Background Check 
          Disqualifications
Appendix C to Part 86--State Information

    Authority: 42 U.S.C. 13041.

    Source: 58 FR 52010, Oct. 6, 1993, unless otherwise noted.



Sec. 86.1  Purpose.

    This part: (a) Implements Public Law 101-647, section 231 and Public 
Law 102-190, section 1094.
    (b) Requires procedures for existing and newly hired individuals and 
includes a review of personnel and security records to include a Federal 
Bureau of Investigation (FBI) fingerprint check and State Criminal 
History Repositories (SCHR) checks of residences listed on employment or 
certification applications.
    (c) Establishes policy, assigns responsibilities, and prescribes 
procedures for criminal history background checks for all existing and 
newly hired individuals involved in the provision of child care services 
as Federal employees, contractors, or in Federal facilities to children 
under the age of 18. The checks are required of all individuals in the 
Department of Defense involved in providing child care services defined 
in Public Law 101-647, and for policy

[[Page 502]]

reasons, those categories of individuals not expressly governed by the 
statute.
    (d) Allows the Department to provisionally hire such individuals 
before the completion of a background check. However, at all times while 
children are in the care of that individual, the child care provider 
must be within sight and under the supervision of a staff person whose 
background check has been successfully completed. Healthcare personnel 
shall comply with guidance provided in the Memorandum from the Assistant 
Secretary of Defense for Health Affairs (ASD(HA)) \1\, April 20, 1992.
---------------------------------------------------------------------------

    \1\ Copies may be obtained from OASD(HA) Room 3E346, The Pentagon, 
Washington, DC 220301-1200.
---------------------------------------------------------------------------

    (e) Includes all individuals providing child care services to 
children in accordance with 32 CFR part 310, Federal Personnel Manual 
(FPM) 2, 32 CFR part 154, DoD Directive 6400.1 3, 
DoD Instruction 6060.2 4, DoD Instruction 6400.2 
5, DoD Directive 1400.13 6, 32 CFR part 68, DoD 
Directive 6025.11 7, DoD Directive 1015.1 8, and 
32 CFR part 212.
---------------------------------------------------------------------------

    \2\ Copies may be obtained from a Federal Depositary Library, or a 
Federal Agency Personnel Office.
    \3\ Copies may be obtained from the National Technical Information 
Service, 5285 Port Royal, Springfield, VA 22161.
    \4\ See footnote 3 to Sec. 86.1(e).
    \5\ See footnote 3 to Sec. 86.1(e).
    \6\ See footnote 3 to Sec. 86.1(e).
    \7\ See footnote 3 to Sec. 86.1(e).
    \8\ See footnote 3 to Sec. 86.1(e).
---------------------------------------------------------------------------



Sec. 86.2  Applicability.

    This part applies to the Office of the Secretary of Defense, the 
Military Departments, the Chairman of the Joint Chiefs of Staff and the 
Joint Staff, the Unified and Specified Commands, the Inspector General 
of the Department of Defense, the Defense Agencies, and the DoD Field 
Activities (hereafter referred to collectively as ``the DoD 
Components'').



Sec. 86.3  Definitions.

    Terms used in this part are defined as follows.
    (a) Appropriated Fund (APF) Employees. Personnel hired by DoD 
Components with appropriated funds as defined in the FPM, Chapter 731. 
This includes temporary employees, 18 years old or older, who work with 
children.
    (b) Care provider. As defined in Public Law 101-647, section 231 and 
Public Law 102-190, section 1094. Providers included are current and 
prospective individuals hired with APF and nonappropriated funds (NAF) 
for education, treatment or healthcare, child care or youth activities, 
individuals employed under contract who work with children and those who 
are certified for care. Care providers are individuals working within 
programs that include alphabetically: Child Development Programs, DoD 
Dependents Schools, DoD-Operated or -Sponsored Activities, DoD Section 6 
School Arrangements, Foster Care, Private Organizations on DoD 
Installations, and Youth Programs. Background checks are required for 
all civilian and military providers (except military health care 
providers) involved in child care services who have regular contact with 
children.
    (c) Child. An unmarried person, whether natural child, adopted 
child, foster child, stepchild, or ward, who is a family member of a 
military member or DoD civilian or their spouse, and who is under the 
age of 18 years; or is incapable of self support because of a mental or 
physical incapacity and for whom treatment is authorized in a medical 
facility of the Military Services, ad defined in DoD Directive 6400.1.
    (d) Child abuse and/or neglect. The physical injury, sexual 
maltreatment, emotional maltreatment, deprivation of necessities, or 
other maltreatment of a child. The term encompasses both acts and 
omissions on the part of a responsible person, as defined in DoD 
Directive 6400.1.
    (e) Child care services. DoD personnel and contractors who are 
involved in any of the following: ``Child protective services (including 
the investigation of child abuse and neglect reports), social services, 
health and mental health care, child (day) care, education (whether or 
not directly involved in teaching), foster care, residential care, 
recreational or rehabilitative programs, and detention, correctional, or 
treatment services,'' as defined in Public Law 101-647, section 231.

[[Page 503]]

    (f) Child Development Center (CDC). An installation facility or part 
of a facility used for child care operated under the oversight of 
Component's Child Development Programs (CDPs) and as defined in DoD 
Instruction 6060.2.
    (g) Child Development Programs (CDPs). Programs for dependents of 
DoD personnel provided in CDCs, family child care (FCC) homes, and 
alternative child care options. The care provided is on a full-day, 
part-day, or hourly basis. Care is designed to protect the health and 
safety of children and promote their physical, social, emotional, and 
intellectual development, as defined in DoD Instruction 6060.2.
    (h) Child sexual abuse. Employment, use, persuasion, inducement, 
enticement, or coercion of any child to engage in, or having a child 
assist any other person to engage in, any sexually explicit conduct (or 
any simulation of such conduct) or the rape, molestation, prostitution, 
or any other such form of sexual exploitation of children, or incest 
with children. All sexual activity between an offender and a child, when 
the offender is in a position of power over the child, is considered 
sexual maltreatment, as defined in DoD Instruction 6400.2.
    (i) Criminal history background check. An investigation based on 
fingerprints and other identifying information obtained by a law 
enforcement officer conducted through the Federal Bureau of 
Investigation-Identification Division (FBI-ID) and SCHR of all States 
that an employee or prospective employee list as current and former 
residences on an employment application initiated through the personnel 
programs of the applicable Federal Agencies, as defined in Public Law 
101-647 or through the personnel program of a given government 
contractor.
    (j) Defense Clearance and Investigations Index (DCII). The central 
DoD record of investigative files and adjudicative actions such as 
clearances and access determinations, revocations, and denials 
concerning military, civilian, and contract personnel.
    (k) DoD Dependents Schools (DoDDS). Schools operated by the 
Department of Defense for minor dependents of military members or DoD 
civilians assigned to duty in foreign countries, as defined in DoD 
Directive 1400.13.
    (l) DoD-operated or -sponsored activity. A contracted entity 
authorized by appropriate DoD officials to perform child care, 
education, treatment, or supervisory functions on DoD-controlled 
property. Examples include but are not limited to CDPs, FCC Programs, 
Medical Treatment Facilities, DoDDS, DoD Section 6 Schools, and Youth 
Programs.
    (m) DoD Section 6 Schools. The educational arrangements made for the 
provision of education to eligible dependent children by the Department 
of Defense under Public Law 81-874, section 6, as defined in 32 CFR part 
68, in the Continental United States, Alaska, Hawaii, Puerto Rico, Wake 
Island, Guam, American Samoa, the Northern Mariana Islands, and the 
Virgin Islands.
    (n) Family Child Care (FCC). Quarters-based child care provided in 
Government-owned or -leased quarters, in which care is provided on a 
regular basis for compensation, usually for more than 10 hours a week 
per child, to one or more (up to six) children, including the provider's 
own children under 8 years of age, as defined in DoD Instruction 6060.2
    (o) Foreign National Employees Overseas. Non-U.S. citizens hired by 
the Department of Defense for employment on an overseas installation.
    (p) Foster care. A voluntary or court-mandated program that provides 
24-hour care and supportive services in a family home or group facility 
for children who cannot be properly cared for by their own family.
    (q) Government-contracted care providers. An individual or a group 
of individuals hired under a Government contract to provide instruction, 
child care services, healthcare, or youth services. FCC providers are 
not considered contracted Government employees for this part.
    (r) Healthcare personnel. Personnel involved in the delivery of 
healthcare to children under the age of 18 on a frequent and regular 
basis. See ASD(HA) memorandum dated April 20, 1992.
    (1) Medical and dental care staff. Physicians, dentists, nurse 
practitioners,

[[Page 504]]

clinical social workers, clinical psychologists, physicians' assistants, 
physical therapists, and speech pathologists.
    (2) Clinical support staff. Clinical providers not granted defined 
clinical privileges to include residents, registered nurses, licensed 
practical nurses, nursing assistants, play therapists, and technicians, 
and defined in DoD Directive 6025.11.
    (s) Installation Records Check (IRC). An investigation conducted 
through the records of all installations of an individual's identified 
residences for the preceding 2 years before the date of the application. 
This record check shall include, at a minimum, police (base and/or 
military police, security office, or criminal investigators or local law 
enforcement) local files check, Drug and Alcohol Program, Family 
Housing, Medical Treatment Facility for Family Advocacy Program to 
include Service Central Registry records and mental health records, and 
any other record checks as appropriate, to the extent permitted by law.
    (t) National Agency Check (NAC). As defined in 32 CFR part 154.
    (u) National Agency Check and Inquiries (NACI). As defined in the 
FPM, Chapters 731 and 736.
    (v) Nonappropriated Fund Instrumentalities (NAFI) Employees. 
Personnel hired by the DoD Components, compensated from NAFI funds as 
defined in DoD Directive 1015.1. This includes temporary employees, 18 
years old or older, who work with children.
    (w) Private Organizations on DoD Installations. A nongovernmental 
entity authorized by the Department of Defense to perform child care 
services, education, or supervisory functions with children on DoD-
controlled property, as defined in 32 CFR part 212. Examples include 
religious groups and associations, such as scouts.
    (x) Respite care. Provides short-term child care and supportive 
services in a family home or group facility for children to relieve 
stress, prevent child abuse, and promote family unity for a parent, 
foster parent, guardian, or family member.
    (y) Regular contact. Responsible for a child or with access to 
children on a frequent basis as defined by the Component.
    (z) Specified volunteer position. A position, designated by the DoD 
Component Head or designee, such as installation commander, requiring an 
installation record check because of the nature of the volunteer work in 
child care services.
    (aa) State Criminal History Repository (SCHR). The State's central 
record of investigative files. State information, including addresses, 
phone numbers, costs and remarks, is listed in appendix C to this part.
    (bb) Supervision. Refers to having temporary responsibility for 
children in child care services, and temporary or permanent authority to 
exercise direction and control by an individual over an individual whose 
required background checks have been initiated but not completed.
    (cc) Temporary employees. This category includes nonstatus 
appointments to a competitive service position for a specified period, 
not to exceed a year. This includes summer hires, student interns, and 
NAFI flexible category employees.
    (dd) Volunteer activities. Activities where individuals offer 
assistance on an unpaid basis in child and youth programs or other 
activities on DoD installations. Examples include sports programs, 
religious programs, scouting programs, and preschools sponsored by 
private parent cooperatives or other associations conducted on the 
installation.
    (ee) Volunteers. Individuals who offer program assistance on an 
unpaid basis.
    (ff) Youth programs. DoD-sponsored activities, events, services, 
opportunities, information, and individual assistance responsive to the 
recreational, developmental, social, psychological, and cultural needs 
of eligible children and youth. Includes before and after school 
programs as well as holiday and summer camps.



Sec. 86.4  Policy.

    It is Department of Defense policy to:
    (a) Establish a standardized and comprehensive process for screening 
applicants for positions involving child care services on DoD 
installations and in DoD activities.

[[Page 505]]

    (b) Provide fair, impartial, and equitable treatment before an 
individual may be deemed suitable to serve as an employee, a certified 
care provider, a specified volunteer position, or as an individual 
employed under contract in activities covered by this part, 32 CFR part 
310, Federal Personnel Manual (FPM), 32 CFR part 154, DoD Directive 
6400.1, DoD Instruction 6060.2, DoD Instruction 6400.2, DoD Directive 
1400.13, 32 CFR part 68, DoD Directive 6025.11, DoD Directive 1015.1, 
and 32 CFR part 212 by conducting a thorough review of all appropriate 
records as described in this part.
    (c) Protect children by denying or removing from employment, 
contract, or volunteer status any applicant or current employee who is 
determined unsuitable to provide child care services because derogatory 
information is contained in a suitability investigation.
    (d) Ensure than an individual is advised of proposed disciplinary 
action, decertification, or refusal to hire by the hiring authority or 
designee if disqualifying derogatory information is contained in a 
suitability investigation. The individual is given the opportunity to 
challenge the accuracy and completeness of reported information.
    (e) Foster cooperation among the DoD Components, other Federal 
Agencies, State and county agencies, and other civilian authorities in 
conducting criminal history background checks.



Sec. 86.5  Responsibilities.

    (a) The Assistant Secretary of Defense for Personnel and Readiness 
shall: (1) Develop policy for conducting criminal history background 
checks on individuals seeking positions involving child care services.
    (2) Monitor compliance with this part.
    (3) Coordinate oversight of criminal history background checks as 
specified under this part.
    (b) The Heads of the DoD Components shall: (1) Develop procedures to 
ensure compliance with the requirements of this part, in accordance with 
appendix A to this part.
    (2) Provide oversight of process and procedures to conduct criminal 
history background checks to include assignment of proponency.
    (3) Provide technical support and resources as required.
    (4) Coordinate participation of specific organizations within the 
DoD Component involved in the conduct of the checks.
    (5) Ensure that applicants and employees are made aware of their 
rights under 32 CFR part 310 including the right to challenge accuracy 
of records.
    (6) Maintain the records of all individuals hired, certified, or 
employed under contract for positions that involve child care services 
for 2 years following termination of their service.
    (7) Establish a mechanism to evaluate all adverse information 
resulting from criminal history background checks, using the criteria in 
appendix B to this part. Final suitability decisions are made by the DoD 
Component Head or designee.



Sec. 86.6  Procedures.

    The records of all existing employees and applicants for positions 
in child care services are reviewed by the Component designee according 
to the procedures prescribed in appendix A to this part.

   Appendix A to Part 86--Criminal History Background Check Procedures

    This appendix establishes the procedures for conducting criminal 
history background checks on existing and newly hired individuals 
required by Public Law 101-647, section 231 and Public Law 102-190, 
section 1094. Background checks are required for all civilian providers 
involved in child care services who have regular contact with children. 
The categories of providers include current and prospective individuals 
hired with APF and NAFI funds for education, treatment or healthcare, 
child care or youth activities, and individuals employed under contract 
involved in the provision of child care services. In addition to the 
mandates of Public Law 102-190, section 1094, the Department of Defense 
requires that military members (except healthcare personnel), foster or 
respite care providers, FCC providers and family members, and specified 
volunteers shall have checks specified in this part.

                          A. Conducting Checks

    Component designees shall notify existing and newly hired 
individuals and contractors

[[Page 506]]

of the requirement for a review of personnel and security records to 
include an FBI fingerprint check and SCHR checks of residences listed on 
employment and security applications.
    1. Fingerprint Check. Law enforcement personnel shall forward 
completed forms through channels to the Office of Personnel Management 
(OPM) or Defense Investigative Service (DIS) for processing of FBI 
fingerprint forms.
    2. State Criminal History Repository (SCHR) Check. DoD Installation-
level personnel offices, in collaboration with law enforcement and 
security personnel, shall process State criminal history background 
checks for employment and shall ordinarily communicate in writing with 
each State identified in appendix B to part 86, providing full 
identifying information on each applicant and request confirmation that 
the individual has not been convicted in that State of a sex crime, an 
offense involving a child victim, a drug felony, or a violent crime. The 
DoD Component Heads may establish alternate procedures for conducting 
SCHR checks; e.g., a computerized, written, or telephonic check. The DoD 
Components are not required to wait longer than 60 days from the date of 
the request for a response from the SCHR personnel before taking action 
on a particular application. Authorities will depend on FBI fingerprint 
check validation if States do not respond.
    3. Installation Record Checks (IRC). Consists of a local record 
check on an individual for a minimum of 2 years before the date of the 
application. This record check shall include, at a minimum, police (base 
and/or military police, security office, criminal investigators, or 
local law enforcement) local files checks, Drug and Alcohol Program, 
Family Housing, Medical Treatment Facility for Family Advocacy Program 
Service Central Registry records and mental health records, and any 
other record checks as appropriate to the extent permitted by law. A 
Service DCII may be conducted. The IRC shall be conducted by DoD 
Component personnel at the installation level. An IRC will be completed 
on individuals with a DoD affiliation such as living or working on an 
installation or is active duty member or family member. Individuals 
without DoD affiliation have no installation system of records to check 
and an IRC is not completed. Upon favorable completion of the IRC, an 
individual may be selected and provide child care services under line of 
sight supervision until the required background checks are completed.

                              B. Applicants

                  1. Appropriated Fund (APF) Applicants

    a. Except as otherwise provided in this subsection, the DoD 
Components shall process APF applicants using currently established 
procedures for completing background checks described in 32 CFR part 
310. APF applicants must complete a SF-171, ``Application for Federal 
Employment,'' and attach an SF-87, ``Fingerprint Chart,'' completed by a 
law enforcement officer; and an SF-85P, ``Questionnaire for Public Trust 
Positions'' (Annotate Block ``B'' with code 03), for conduct of a NACI. 
The package shall be forwarded to the OPM.
    b. The DoD Components shall assign responsibility for conducting the 
criminal history background checks through the SCHR to personnel offices 
working with law enforcement or investigative agencies. They shall 
conduct checks in all States that an employee or prospective employee 
lists as current and former residences in an employment or security 
application. It is deemed unnecessary to conduct checks before 18 years 
of age because juvenile records are unavailable. If no response is 
received from the State(s) within 60 days, determinations based upon the 
FBI report may be made. Responses received after this determination has 
been made must be provided to the determining authority.
    c. Under Public Law 102-190, section 1094, the DoD Components may 
employ an individual pending completion of successful background checks 
described in Public Law 101-647, section 231. If an individual is so 
employed, at all times while children are in the care of that 
individual, he or she must be within sight and under the supervision of 
an individual whose background checks have been completed, with no 
derogatory reports.
    d. Once it is clear that no derogatory information exists, line of 
sight supervision is terminated by the designee. If a derogatory report 
exists, Component personnel procedures shall prescribe appropriate 
action consistent with the criteria contained in this part.

       2. Nonappropriated Fund Instrumentalities (NAFI) Applicants

    a. Except as otherwise provided in this subsection, the DoD 
Components shall process NAFI applicants following established 
procedures for completing background checks. NAFI applicants must 
complete a DD Form 398-2 ``Department of Defense National Agency 
Questionnaire,'' with reason for request identified as OTHER and 
annotated as CHILD CARE, and FD Form 258, ``FBI Applicant Fingerprint 
Card.'' Fingerprints shall be taken by the local law enforcement 
organization personnel and together with the DD Form 398-2 shall be 
forwarded to: Defense Investigative Service, Personnel Investigations 
Center, P.O. Box 1083, Baltimore, MD 21203-1083.
    b. The DoD Components shall follow the procedures in the FPM, 
Chapter 731 and 736 and in paragraph B.1.b.,c., and d. of this appendix 
to obtain fingerprints for the FBI,

[[Page 507]]

conduct criminal history background checks through the SCHR, and 
maintain employment of individuals pending the successful completion of 
the background checks.

                 3. Foreign National Employees Overseas

    Foreigh national employees overseas, while not expressly included 
within the law, are subject to the following record checks or those 
equivalent in scope to checks conducted on U.S. citizens:
    a. Host-government law enforcement and security agency checks at the 
city, State (province), and national level, whenever permissible by the 
laws of the host government.
    b. Defense Central Investigative Index (DCII).
    c. FBI checks (when information exists regarding residence by the 
individual in the United States for 1 year or more since age 18).
    d. When permissible by the laws of the host government, host-
government checks are requested directly by the employing Service or 
agency. As an alternative, the DoD Components may request that overseas 
Military Service investigative elements obtain appropriate host-
government checks. Where host-nations' arrangements preclude comparable 
criminal history checks, foreign nationals will not be eligible for 
employment in child care services.

                         4. Temporary Employees

    This category includes summer hires, student interns, and NAFI 
flexible category employees. Background checks for these individuals are 
processed according to funding source; i.e., for APF employees (to OPM) 
or NAFI employees (to DIS). Installation designated points of contact 
shall notify applicants of report disposition.

                         5. Healthcare Personnel

    This category includes civilian personnel involved in the delivery 
of healthcare. Within the context of such medical care, line of sight 
supervision must be viewed through the prism of existing medical quality 
assurance, clinical privileging, and licensure directives, which require 
pre-employment screens, enhanced surveillance of new employees, and 
ongoing monitoring of the performance of all healthcare providers. These 
programs are inherent to both quality medical care and patient safety 
and are adequate and equivalent mechanisms for the sight and supervision 
requirements in paragraph B.1.c. and d. of this appendix. It should be 
noted that these quality assurance programs are not sufficient in and of 
themselves under Public Law 101-647, section 231. Therefore, the 
required FBI fingerprint check and the SCHR check must be completed as 
expeditiously as possible.

                          C. Current Employees

    All currently employed individuals covered by this part shall have 
the FBI fingerprint and criminal history background check as described 
in Public Law 101-647, section 231. If the results of such checks, to 
include the SCHR, cannot be confirmed through an examination of 
available local records, action shall be initiated in accordance with 
paragraph B.1. of this appendix for APF employees and paragraph B.2. of 
this appendix for NAFI employees, and with paragraph D. of this appendix 
for individuals employed under contract. The SCHR checks are conducted 
in all cases in accordance with paragraph A.2. of this appendix. For the 
purposes of this part, no IRC is required for individuals employed 
before June 1991.

                    D. Government Contract Employees

    1. Sponsoring activities are responsible for ensuring that the 
requirements in this part are included in the statement of work for all 
child care programs to be contracted. The contracting officer is 
responsible for performing any action necessary to verify that services 
provided by the contractor conform to contract quality requirements. 
Component designees for requiring activities shall ensure that the 
statement of work, at a minimum:
    a. States that the contractor must ensure its employees have proper 
criminal history background checks as outlined in this part.
    b. States that actual checks are performed by the Government.
    c. Includes procedures that the contractor must follow to obtain 
checks for its employees; for example, identify the office where 
employees report for processing, identify proper forms to be completed, 
etc. Also, identify the DoD Component for billing purposes, and identify 
the appropriate security point of contact or installation commander as 
the authorized recipient of background check results.
    d. States that employees may be permitted to work before completion 
of background checks, provided the employee is within sight of an 
individual who has successfully completed a background check.
    e. States that employees have the right to obtain a copy of the 
background check report, whom they should contact for the copy and whom 
to contact for procedures to challenge the accuracy and completeness of 
the information in the report.
    f. Requires that contractor employees who have previously received a 
background check must provide proof of the check or obtain a new one.
    2. Requirements for child care services must be submitted to the 
contracting officer

[[Page 508]]

sufficiently in advance of the required performance start date to 
provide time for obtaining background checks. Sponsoring activities' 
designees shall coordinate with the contracting officer as soon as 
possible after a requirement for child care services becomes known.
    3. Procedures for obtaining responses for background checks are the 
same as those for NAFI employees and response to derogatory information 
will occur through the appropriate designee and contractor. An IRC will 
be performed if the individual is a military member or family member, or 
has worked or lived on a military installation within 5 years.

                           E. Other Providers

    Criminal history background checks with the FBI and the States are 
not required. Duplication of previous background checks are not required 
for personnel where official records demonstrate that an adequate check 
has already been conducted. This category includes the following:
    1. Military Members. These are active duty individuals (other than 
healthcare personnel) who seek to provide child care services as part of 
a normal duty assignment or are involved during off-duty hours. For 
these members an IRC and a current security clearance meet the 
requirements of this part. In the absence of a current security 
clearance, a name check of the DCII must be conducted. When military 
members are employed in an APF or a NAFI position they will abide by 
background check requirements listed in paragraphs B.1. and B.2. of this 
appendix.
    2. Foster and Respite Care Providers and Family Members. These are 
individuals who seek to provide foster care or respite child care within 
Government-owned or -leased quarters. The care provider, all other 
adults, and each child, age 12 and older, residing within the 
applicant's household must receive an IRC. In addition, the Component 
designee must also obtain a name check of the DCII on all adults.
    3. FCC Providers and Family Members. These are individuals who seek 
licensing to provide child care within government-owned or -leased 
quarters. The care provider, all other adults, and each child, age 12 
and older, residing within the applicant's household receive an IRC. In 
addition, the Component designee must obtain a name check of the DCII on 
all adults.
    4. Specified Volunteers. Installation commanders shall designate 
those positions that are determined to be ``specified.'' Individuals 
working in specified volunteer positions will have an IRC check because 
of the nature of their work in child care services. The opportunity for 
contact may be extensive, frequent, or over a period of time. They 
include, but are not limited to, positions involving extensive 
interaction alone, extended travel, and/or overnight activities with 
children. An IRC is required for volunteers who are active-duty, a 
family member, or a DoD civilian overseas. A volunteer is allowed to 
work upon completion of a favorable IRC. Background checks are not 
required for volunteers whose services will be of shorter duration than 
is required to perform the background checks and who are under line of 
sight supervision by an individual who has successfully completed a 
background check. The Components are required to provide additional 
implementing guidance.

                  F. Employment Application Requirement

    Public Law 101-647, section 231 requires that each application for 
employment shall include a question asking whether the individual has 
ever been arrested for or charged with a crime involving a child, and, 
if so, requires a description of the disposition of the arrest or 
charge. The forms identified in paragraphs B.1.a. and B.2.a. of this 
appendix are signed by the applicant under penalty of perjury, with the 
applicable Federal punishment for perjury stated on the respective 
forms.
    1. An applicant's signature indicates an understanding of the 
employer's obligation to require a record check as a condition of 
employment. Information on background checks shall be maintained in 
accordance with applicable Component implementing regulations.
    2. Payment for the conduct of any criminal history background check 
is the responsibility of the requesting Service or agency.
    3. The results of the background check are forwarded to the 
Component designee at the sending installation for appropriate action. A 
derogatory report would include, but not be limited to, the following 
applicable crimes: Any charge or conviction for a sex crime, an offense 
involving a child victim, a substance abuse felony, or a violent crime.
    4. The hiring authority or designee is responsible for notifying the 
individual of a derogatory report. The individual may obtain a copy of 
the criminal history report and has the right to challenge the accuracy 
and completeness of any information contained in the report through the 
Privacy Program described in 32 CFR part 310. The individual may provide 
information concerning positive mitigating factors for any adverse 
information presented.
    5. Employees whose criminal history background checks result in 
nonselection for employment or service shall be informed by the 
Component designee of the right to an administrative appeal under 32 CFR 
part 310. The individual may appeal with a specific request such as 
amendments to the records or request to file statement disagreeing with 
information in the record. If the employee's request for record 
information is refused, the

[[Page 509]]

individual is informed of his or her right to an administrative appeal. 
As appropriate, Component designees shall inform individuals of other 
avenues available to resolve matters of concern such as an 
administrative or negotiated grievance procedures. If the employee 
remains dissatisfied, he or she may seek a review. The Department of 
Defense recognizes the privacy interests and rights of all applicants 
and employees, and its own responsibility in ensuring a safe and secure 
environment for children within DoD activities or private organizations 
on DoD installations.

                        G. Record Re-Verification

    This procedure consists of an IRC and a DCII name check and is 
required by the Component designee at a minimum every 5 years for all 
employees providing child care services and covers the time period since 
the completion of the last background check. NAFI employees who change 
duty stations will complete a new investigation when considered for 
employment. A new investigation is required by the Department of Defense 
if a break in service results in a time-lapse of more than 2 years. FCC, 
foster care and respite care providers, and their family members will 
complete an IRC annually.

                             H. Supervision

    Refers to temporary responsibility for children in child care 
services, and relates to oversight for temporary or permanent authority 
to exercise direction and control by an individual over an individual 
whose required background checks have been initiated but not completed. 
Use of video equipment is acceptable provided it is monitored by an 
individual who has successfully completed a background check. 
Supervision procedures pending completion of background checks for 
healthcare personnel suggest that the Surgeons General shall require 
close clinical supervision and full compliance with existing DoD 
Directives, Instructions, and other guidance (issued by the Department 
of Defense and the Military Department concerned) on quality assurance, 
risk management, licensure, employee orientation, and credentials 
certification. These policies rely on process and judgment, and meet the 
intent of the ``direct sight supervision'' provision, affording local 
commanders a flexible and reasonable alternative.
I. Programs. Requirements cover all DoD-operated activities and private 
          organizations on DoD installations and include, but are not 
          limited to:
    1. Child Development Programs.
    a. Child development centers, part-day preschools, and enrichment 
programs.
    b. Family child care.
    c. Contracted Services, whether personal or non-personal services.
    2. Youth Programs.
    3. Dependents Schools operated by the Department of Defense.
    4. Medical treatment facilities.
    5. Other contracted services.
    6. Private organizations on DoD installations.
    7. Volunteer activities.

                       J. Background Check Matrix

    This identifies the requirements of this part for background checks 
by category of personnel. These checks are initiated through the 
personnel offices in collaboration with law enforcement and security 
personnel. (Reminder: An IRC may only be completed on an individual who 
is a military member or family member, or who lives or works on a 
military installation.)
    1. Appropriated Fund (APF) Employees. FBI, SCHR, and IRC. (SF-171, 
SF-87, and SF-85P).
    2. Non-appropriated Fund Instrumentalities (NAFI) Employees. FBI, 
SCHR, and IRC. (DD Form 398-2 and FD Form 258).
    3. Foreign National Employees Overseas. IRC and local government 
check.
    4. Temporary Employees. FBI, SCHR, and IRC.
    5. Current Employees. FBI and SCHR.
    6. Government Contract Employees. FBI, SCHR, and IRC.
    7. Other Providers.
    a. Military Members. Military members will have an IRC and, if no 
current security clearance exists, a name check of the DCII. Checks are 
not required for military healthcare personnel.
    b. Foster and Respite Care Providers and Family Members (age 12 and 
older). IRC and Service DCII (for adults).
    c. Family Child Care Providers and Family Members (age 12 and 
older). IRC and Service DCII (for adults).
    d. Specified Volunteers. IRC.

 Appendix B to Part 86--Criteria For Criminal History Background Check 
                            Disqualification

    The ultimate decision to determine how to use information obtained 
from the criminal history background checks in selection for positions 
involving the care, treatment, supervision, or education of children 
must incorporate a common sense decision based upon all known facts. 
Adverse information is evaluated by the DoD Component Head or designee 
who is qualified at the appropriate level of command in interpreting 
criminal history background checks. All information of record both 
favorable and unfavorable will be assessed in terms of its relevance, 
recentness, and seriousness. Likewise, positive mitigating factors 
should be considered. Final suitability decisions shall be made by that 
commander or designee. Criteria that

[[Page 510]]

will result in disqualification of an applicant require careful 
screening of the data and include, but are not limited to, the 
following:

                   A. Mandatory Disqualifying Criteria

    Any conviction for a sexual offense, a drug felony, a violent crime, 
or a criminal offense involving a child or children.

                        B. Discretionary Criteria

    1. Acts that may tend to indicate poor judgment, unreliability, or 
untrustworthiness in working with children.
    2. Any behavior; illness; or mental, physical, or emotional 
condition that in the opinion of a competent medical authority may cause 
a defect in judgment or reliability.
    3. Offenses involving assault, battery, or other abuse of a victim, 
regardless of age of the victim.
    4. Evidence or documentation of substance abuse dependency.
    5. Illegal or improper use, possession, or addiction to any 
controlled or psychoactive substances, narcotic, cannibas, or other 
dangerous drug.
    6. Sexual acts, conduct, or behavior that, because of the 
circumstances in which they occur, may indicate untrustworthiness, 
unreliability, lack of judgment, or irresponsibility in working with 
children.
    7. A wide range of offenses such as arson, homicide, robbery, fraud, 
or any offense involving possession or use of a firearm.
    8. Evidence that the individual is a fugitive from justice.
    9. Evidence that the individual is an illegal alien who is not 
entitled to accept gainful employment for a position.
    10. A finding of negligence in a mishap causing death or serious 
injury to a child or dependent person entrusted to their care.

                      C. Suitability Considerations

    In making a determination of suitability, the evaluator shall 
consider the following additional factors to the extent that these 
examples are considered pertinent to the individual case:
    1. The kind of position for which the individual is applying or 
employed.
    2. The nature and seriousness of the conduct.
    3. The recentness of the conduct.
    4. The age of the individual at the time of the conduct.
    5. The circumstances surrounding the conduct.
    6. Contributing social or environmental conditions.
    7. The absence or presence of rehabilitation or efforts toward 
rehabilitation.
    8. The nexus of the arrests in regard to the job to be performed.

                              D. Questions

    1. All applications, for each of the categories of individuals 
identified in Sec. 86.3, will include the following questions: ``Have 
you ever been arrested for or charged with a crime involving a child? 
Have you ever been asked to resign because of or been decertified for a 
sexual offense? And, if so, ``provide a description of the case 
disposition.'' For FCC, foster care, and respite care providers, this 
question is asked of the applicant regarding all adults, and all 
children 12 years and older, who reside in the household.
    2. All applications shall state that the form is being signed under 
penalty of perjury. In addition, a false statement rendered by an 
employee may result in adverse action up to and including removal from 
Federal service.
    3. Evaluation of criminal history background checks is made and 
monitored by qualified personnel at the appropriate level designated by 
the Component. Final suitability decisions are made by the designee.

                Appendix C to Part 86--State Information

    All SCHR checks should be accompanied by the following: 1. State 
form, if required. If no State form is required, the request should be 
on letterhead, beginning with the statement that the check is in 
accordance with Public Law 101-647. The request must include full 
identifying information, such as: Name, date of birth, social security 
number, complete addresses, etc.
    2. Fingerprint set if required. Some State laws require a 
fingerprint set either on a State form or forms used by the agency.
    3. Release statement signed by the applicant or employee. If 
required by the State, the release must be notarized.
    4. Payment for the SCHR check.
    5. Self-addressed, stamped envelope.
    The following is an updated listing of State addresses, fees, and 
other information:

------------------------------------------------------------------------
             Address                    Fee               Remarks       
------------------------------------------------------------------------
State of Alabama, Alabama Dept.   $25............  Name check, COMM: 205-
 of Public Safety, Attn: ABI                        242-4372.           
 Division, 5002 Washington Ave.,                                        
 Montgomery, AL 36130.                                                  
State of Alaska, Alaska Dept, of  20.............  Fingerprints         
 Public Safety, Information                         required, reason for
 Systems Section, 5700 Tudor                        request required    
 Road, Anchorage, AK 99507.                         (comply with Pub.   
                                                    L.), name and       
                                                    address authorized  
                                                    request and receive 
                                                    SCHRC, COMM: 907-269-
                                                    5511.               

[[Page 511]]

                                                                        
State of Arizona, Arizona         No check.......  Limited release, call/
 Criminal Justice, Dept. of                         write, write for    
 Public Safety, Information                         information. COMM:  
 Systems Division, PO Box 6638,                     602-223-2229.       
 Phoenix, AZ 80550.                                                     
State of Arkansas, Arkansas       No fee.........  Name check, written  
 State Police, PO Box 5901,                         consent required,   
 Little Rock, AR 72215.                             COMM: 501-221-8233. 
State of California, Dept. of     27.............  Fingerprints         
 Justice, Bureau of Criminal                        required, COMM: 916-
 Justice, Identification and                        739-2786.           
 Information Bureau, PO Box                                             
 903417, Sacramento, CA 94203-                                          
 4170.                                                                  
State of Colorado, Crime          4.50...........  Write/call for form, 
 Information Center, Colorado                       name check, COMM:   
 Bureau of Investigation, 690                       303-239-4222/4229.  
 Kipling Street, 3000,                                                 
 Lakewood, CO 80215.                                                    
State of Connecticut, Dept. of    No fee.........  Name check, written  
 State Police, Bureau of                            consent required,   
 Investigation, Building 4, 294                     copy of Pub. L.     
 Colony Street, Meriden, CT                         required, COMM: 203-
 06450.                                             238-6155.           
State of Delaware, Delaware       25.............  Fingerprints         
 State Police-SBI, State Bureau                     required, COMM: 302-
 of Investigation, PO Box 430,                      739-5871.           
 Dover, DE 19903.                                                       
Washington, DC, Identification    No fee.........  Name check, wittten  
 and Records Division,                              request required,   
 Metropolitan Police Dept., Room                    COMM: 202-727-4245. 
 2076, 300 Indiana Avenue, NW.,                                         
 Washington, DC 20001.                                                  
State of Florida, Florida Dept.   10.............  Name check, check to:
 of Law Enforcement, PO Box                         Dept. of Law        
 1489, Tallahassee, FL 32302.                       Enforcement, COMM:  
                                                    904-488-6236.       
State of Georgia, Georgia         15.............  Write or call for    
 Criminal Information Center, PO                    form, notary and    
 Box 370748, Decatur, GA 30037-                     fingerprints        
 0748.                                              required, COMM: 404-
                                                    244-2644.           
State of Hawaii, Criminal         No fee.........  Name check, COMM: 808-
 Justice Data Center, 465 South                     587-3100.           
 King Street, Room 101,                                                 
 Honolulu, HI 96813.                                                    
State of Idaho, Idaho Dept. of    5..............  Name check, written  
 Law Enforcement, Criminal                          consent required,   
 Identification Bureau, 6064                        payment to: Dept. of
 Corporal Lane, Boise, ID 83704.                    Law Enforcement,    
                                                    COMM: 208-327-7130. 
State of Illinois, Bureau of      14.............  Write or call for    
 Identification, 260 North                          form, name check,   
 Chicago Street, Joliet, IL                         COMM: 815-740-5184. 
 60431-1060.                                                            
State of Indiana, Indiana State   7..............  Write or call for    
 Police, 100 North Senate                           form, name check,   
 Avenue, Room 312, Indianapolis,                    COMM: 317-232-8266. 
 IN 46204.                                                              
State of Iowa, Commissioner Paul  6..............  Release within State,
 H. Wieck II, Iowa Dept. of                         COMM: 515-281-5138. 
 Public Safety, Wallace State                                           
 Office Building, Des Moines, IA                                        
 50319.                                                                 
State of Kansas, Kansas Bureau    10.............  Write or call for    
 of Investigation, 1620                             form, name check, $5
 Southwest Tyler, Topeka, KS                        per name, over two  
 66612.                                             names, COMM: 913-232-
                                                    6000.               
State of Kentucky, Kentucky       4..............  Write or call for    
 State Police Records, State                        form, name check,   
 Office Building, 1250                              COMM: 502-227-      
 Louisville Road, Frankfort, KY                     8700x214.           
 40601.                                                                 
State of Louisiana, Louisiana     13.............  Write or call for    
 State Police, Department of                        form, fingerprints  
 Public Safety, PO Box 66614,                       required, COMM: 502-
 Baton Rouge, LA 70896.                             925-6095.           
State of Maine, State Bureau of   No fee.........  Name check, reason   
 Investigation, Department of                       for check required; 
 Public Safety, Maine State                         i.e., comply with   
 Police, 36 Hospital Street,                        Pub. L., COMM: 207- 
 Augusta, ME 04333.                                 624-7009.           
State of Maryland, Criminal       18.............  Write or call for    
 Justice Information Service,                       form, name check,   
 Central Repository, Building                       COMM: 410-764-4501. 
 G4, 1201 Reistertown Road,                                             
 Pikesville, MD 21208.                                                  
State of Massachusetts,           No fee.........  Write or call for    
 Executive Office of Public                         form, name check,   
 Safety, Criminal History                           COMM: 617-727-      
 Systems Board, 1010                                0090x12.            
 Commonwealth Avenue, Boston, MA                                        
 02215.                                                                 
State of Michigan, Michigan       No check.......  No release, COMM: 517-
 State Police, FOI Unit, 7150                       322-5531.           
 Harris Drive, Lansing, MI 48913.                                       
State of Minnesota, Criminal      8..............  Name check, written  
 Justice Information Systems,                       consent required,   
 Bureau of Criminal                                 COMM: 612-642-0670. 
 Apprehension, Minnesota Dept.                                          
 of Public Safety, 1246                                                 
 University Avenue, St. Paul, MN                                        
 55104.                                                                 
State of Mississippi, Department  No fee.........  Write or call for    
 of Public Safety, ATTN:                            form, name check,   
 Identification Bureau, PO Box                      COMM: 607-987-1212. 
 958, Jackson, MS 39225.                                                
State of Missouri, Criminal       5..............  Write or call for    
 Records Division, State Highway                    form, name check    
 Patrol, Department of Public                       COMM: 314-751-3313. 
 Safety, PO Box 568, Jefferson                                          
 City, MO 65102.                                                        
State of Montana, Identification  5..............  Name check, COMM: 406-
 Bureau, Department of Justice,                     444-3625.           
 303 North Roberts, Helena, MT                                          
 59620-1418.                                                            
State of Nebraska, Nebraska       10.............  Name check, COMM: 402-
 State Patrol, PO Box 94907,                        471-4545.           
 State House Station, ATTN: CID,                                        
 Lincoln, NE 68509-4907.                                                
State of Nevada, Nevada Highway   15.............  Write or call for    
 Patrol, 555 Wright Way, Carson                     form, fingerprints  
 City, NV 89711.                                    required, COMM: 702-
                                                    687-5300.           
State of New Hampshire, New       10.............  Write or call for    
 Hampshire State Policy HQ,                         form, name check,   
 Criminal Records, 10 Hazen                         COMM: 603-271-2538. 
 Drive, Concord, NH 03305.                                              
State of New Jersey, Division of  12.............  Copy of Pub. L.      
 State Police, Records and ID                       required, name      
 Section, PO Box 7068, West                         check, COMM: 609-882-
 Trenton, NJ 08625-0068.                            2000.               
State of New Mexico, Department   5..............  Write or call for    
 of Public Safety, Records                          form, name check,   
 Bureau, PO Box 1628, Sante Fe,                     notary required,    
 NM 87504-1628.                                     COMM: 505-827-9181. 

[[Page 512]]

                                                                        
State of New York, Division of    No check.......  No release at current
 Criminal Justice Services,                         time, state requires
 Executive Park Tower,                              an agreement with   
 Stuyvesant Plaza, Albany, NY                       agency to process,  
 12203.                                             COMM: 518-485-7685. 
State of North Carolina,          14.............  Fingerprint form     
 Division of Criminal                               required, copy of   
 Information, Bureau of                             Pub. L. required,   
 Investigation, 407 North Blount                    call/write for form,
 Street, Raleigh, NC 27601-1009.                    COMM: 919-662-4500. 
State of North Dakota, Bureau of  20.............  Name check, written  
 Criminal Information, PO Box                       consent required,   
 1054, Bismark, ND 58502.                           COMM: 702-221-6180. 
State of Ohio, Bureau of          15.............  Write or call for    
 Criminal Information, PO Box                       form, written       
 365, London, OH 43140.                             consent required,   
                                                    fingerprints        
                                                    required, COMM: 614-
                                                    852-2556.           
State of Oklahoma, Oklahoma Law   10.............  Write or call for    
 Enforcement, Criminal History                      form, name check,   
 Information, ATTN: Criminal                        COMM: 405-848-6724. 
 History, PO 11497, Oklahoma                                            
 City, OK 73136.                                                        
State of Oregon, Criminal ID,     10.............  Name check, COMM: 503-
 State Police, 155 Cottage                          378-3070.           
 Street, NE, Salem, OR 97310.                                           
State of Pennsylvania, Records    10.............  Write or call for    
 and ID Division, Pennsylvania                      form, name check, 10
 State Police, Dept. HQ, 1800                       COMM: 717-783-5592. 
 Elmerton Avenue, Harrisburg, PA                                        
 17110.                                                                 
State of Rhode Island, Rhode      No fee.........  Name check, written  
 Island State Police, PO Box                        consent required,   
 185, North Scituate, RI 02857.                     COMM: 401-647-3311. 
State of South Carolina, State    10.............  Name check, COMM: 803-
 Law Enforcement Division, ATTN:                    737-4205, DSN: 734- 
 Criminal Records, PO Box 21398,                    1110.               
 Columbia, SC 29221-1398.                                               
State of South Dakota, Division   15.............  Write or call for    
 Criminal Investigation,                            form, fingerprints  
 Attorney General's Office, East                    required, COMM: 605-
 Highway 34, Pierre, SD 57501-                      773-3334.           
 5070.                                                                  
State of Tennessee, Tennessee     23.............  Write or call for    
 Criminal Information Center,                       form, fingerprints  
 Tennessee Bureau of                                required, COMM: 615-
 Investigation, PO Box 100940,                      741-3241.           
 Nashville, TN 37210.                                                   
State of Texas, Texas Crime       15.............  Fingerprints         
 Records Division, Texas Dept.                      required, written   
 of Public Safety, PO Box 15999,                    consent required,   
 Austin, TX 78761-5999.                             COMM: 512-465-2079. 
State of Utah, Bureau of          No fee.........  Write or call for    
 Criminal Identification, Utah                      form, name check,   
 Dept. of Public Safety, 4501                       copy of law         
 South 2700 West, Salt Lake                         required, COMM: 801-
 City, UT 84119.                                    965-4571.           
State of Vermont, Vermont         No fee.........  Name check, written  
 Criminal Information Center,                       consent required,   
 Dept. of Public Safety, PO Box                     COMM: 802-244-8786. 
 189, Waterbury, VT 05676.                                              
Commonwealth of Virginia,         10.............  Write or call for    
 Virginia Records Management                        form, name check,   
 Div., Dept. of State Police, PO                    COMM: 804-674-2024. 
 Box 850761, Richmond, VA 23261-                                        
 5076.                                                                  
State of Washington, Washington,  10.............  Write or call for    
 State Patrol, Identification                       form, name check,   
 Section, PO Box 42633, Olympia,                    COMM: 206-753-0230/ 
 WA 98504-2633.                                     7272.               
West Virginia State Police,       5..............  Write or call for    
 Dept. of Public Safety, 725                        form, name check,   
 Jefferson Road, South                              COMM: 304-746-2180. 
 Charleston, WV 25309.                                                  
State of Wisconsin, Crime         2..............  Write or call for    
 Information Bureau, Dept. of                       form, name check,   
 Justice, ATTN: Records Data                        COMM: 608-266-7314. 
 Unit, PO Box 2718, Madison, WI                                         
 53701-2718.                                                            
State of Wyoming, Division of     15.............  Write or call for    
 Criminal Investigation, 316                        form, fingerprints  
 West 22nd Street, Cheyenne, WY                     required, written   
 82002.                                             consent required,   
                                                    COMM: 307-777-7181. 
------------------------------------------------------------------------



PART 88--TRANSITION ASSISTANCE FOR MILITARY PERSONNEL--Table of Contents




Sec.
88.1  Purpose.
88.2  Applicability and scope.
88.3  Definitions.
88.4  Policy.
88.5  Responsibilities.
88.6  Information requirements.

    Authority: 10 U.S.C. chapter 58.

    Source: 59 FR 14559, Mar. 29, 1994, unless otherwise noted.



Sec. 88.1  Purpose.

    (a) This part supersedes the Assistant Secretary of Defense For 
Force Management and Personnel memorandum,\1\ ``Policy Changes For 
Transition Assistance Initiatives,'' June 7, 1991, establishes policy, 
and assigns responsibilities for transition assistance programs for 
active duty military personnel and their families.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the Directorate of 
Transition Support and Services, Office of the Assistant Secretary of 
Defense for Personnel and Readiness, 4000 Defense Pentagon, Washington, 
DC 20301-4000.
---------------------------------------------------------------------------

    (b) Implements transition assistance programs for DoD military 
personnel and their families as outlined in section 502, Public Law 101-
510; section 661

[[Page 513]]

and section 662, Public Law 102-190, and sections 4401-4501, Public Law 
102-484.



Sec. 88.2  Applicability and scope.

    This part applies to: (a) The Office of the Secretary of Defense, 
the Military Departments, the Chairman of the Joint Chiefs of Staff, the 
Unified Combatant Commands, and the Defense Agencies (hereafter referred 
to collectively as ``the DoD Components''). The term ``Military 
Services,'' as used herein, refers to the Army, the Navy, the Air Force, 
and the Marine Corps.
    (b) All active duty Service members and their families.



Sec. 88.3  Definitions.

    (a) Involuntary separation. A member of the Military Service shall 
be considered to be involuntarily separated if he or she was on active 
duty or full-time National Guard duty on September 30, 1990 and:
    (1) In the case of a Regular officer (other than a retired officer), 
he or she was involuntarily discharged under other than adverse 
conditions, as characterized by the Secretary of the separating Service 
member's Military Department. Discharge under adverse conditions is 
determined by referring to the reason for separation as well as the 
officer's service, as outlined in Department of Defense Directive 
1332.30.\2\
---------------------------------------------------------------------------

    \2\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    (2) In the case of a Reserve officer who is on the active duty list 
or, if not on the active duty list, is on full-time active duty (or in 
the case of a member of the National Guard, full time National Guard 
duty) for the purpose of organizing, administering, recruiting, 
instructing, or training the Reserve components, he or she is 
involuntarily discharged or released from active duty or full-time 
National Guard duty (other than a release from active duty or full-time 
National Guard duty incident to a transfer to retired status) under 
other than adverse conditions as characterized by the Secretary of the 
separating Service member's Military Department. Discharge under adverse 
conditions is determined by referring to the reason for separation as 
well as the officer's service, as outlined in Department of Defense 
Directive 1332.30.
    (3) In the case of a Regular enlisted member serving on active duty, 
he or she is denied reenlistment or involuntarily discharged under other 
than adverse conditions, as characterized by the Secretary of the 
separating Service member's Military Department. Discharge under adverse 
conditions is determined by referring to the reason for separation as 
well as the enlisted member's service, as outlined in Department of 
Defense Directive 1332.14.\3\
---------------------------------------------------------------------------

    \3\ See footnote 2 to section 88.3(a)(1).
---------------------------------------------------------------------------

    (4) In the case of a Reserve enlisted member who is on full-time 
active duty (or in the case of a member of the National Guard, full-time 
National Guard duty) for the purpose of organizing, administering, 
recruiting, instructing, or training the Reserve components, he or she 
is denied reenlistment or is involuntarily discharged or released from 
active duty (or full-time National Guard duty) under other than adverse 
conditions as determined by referring to the reason for separation as 
well as the enlisted member's service, as outlined in Department of 
Defense Directive 1332.14.
    (b) Separation entitlements. Benefits provided to Service members 
being involuntarily separated on or before September 30, 1995 as defined 
in paragraphs (a)(1) through (a)(4) of this section, and their families. 
Benefits provided to Service members being separated under the Special 
Separation Benefit or Voluntary Separation Incentive on or before 
September 30, 1995, as defined in paragraph (c) of this section and 
their families. These benefits include: Training opportunities under the 
Job Training Partnership Act as described in section 4465 of Public Law 
102-484; priority affiliation with the National Guard and Reserve, as 
described in section 502(a)(1) of Public Law 101-510, as amended; 
enrolled in the All-Volunteer Force Educational Assistance Program 
(``Montgomery G.I. Bill''), as described in section 4404 of Public Law 
102-484; extended medical and dental care, as described in section 
502(a)(1) of Public Law 101-510, as amended, and sections 4407 and 4408 
of Public Law 102-484; continued use of military family housing

[[Page 514]]

as described in section 502 (a)(1) of Public Law 101-510, as amended 
(subject to Status of Forces Agreements overseas); extended and 
commissary privileges as detailed in section 502(a)(1) of Public Law 
101-510, as amended (subject to Status of Forces Agreements overseas); 
travel and transportation allowances, as detailed in section 503 of 
Public Law No. 101-510, as amended; continuation of enrollment in 
Department of Defense Dependents Schools as detailed in section 504 of 
Public Law 101-510, as amended (subject to Status of Forces Agreements 
overseas.)
    (c) Special separation benefit and voluntary separation incentive. 
Voluntary separation programs established in section 661 and section 662 
of Public Law 102-190, as amended. Service members separated under these 
programs are eligible for both transition services and separation 
entitlements outlined in paragraphs (b) and (d) of this section.
    (d) Transition services. Preseparation counseling, individual 
transition planning, employment assistance, excess leave and permissive 
temporary duty, and relocation assistance for personnel overseas as 
described in section 502 (a)(1) of Public Law 101-510, as amended.



Sec. 88.4  Policy.

    It is DoD policy that: (a) Transition assistance programs prepare 
separating Service members and their families with the skills, tools, 
and self-confidence necessary to ensure successful reentry into the 
Nation's civilian work force.
    (b) Transition assistance programs be designed to complete the 
military personnel ``life cycle.'' This cycle begins with the Service 
member's recruitment from the civilian sector, continues with training 
and sustainment throughout a Service members's active service in the 
Armed Forces, and ends when the Service member returns to the civilian 
sector.
    (c) Transition assistance programs include: (1) Transition service 
as defined in )88.3 (d) to be provided to Service members and their 
families for up to 90 days after separation, space and work load 
permitting.
    (2) Separation entitlements as defined in Sec. 88.3 (b) for Service 
members who are involuntarily separating as defined in Sec. 99.3 (a) or 
separating under the Voluntary Separation Incentive or Special 
Separation Benefit Programs as defined in Sec. 88.3 (c).
    (d) Service members from one Service shall not restricted from 
participating in another Service's transition assistance program unless 
workload or other unusual circumstances dictate. Every effort will be 
made to accommodate all eligible personnel, especially if referral to 
another transition site will require the Service member to travel a long 
distance and incur significant expense.
    (e) [Reserved]
    (f) When being discharged, released from active duty, or retiring 
(hereafter referred to as ``separating Service members''), Service 
members and their families bear primary responsibility for their 
successful transition into the civilian sector.
    (g) Spouses shall be encouraged to participate in transition 
planning and counseling to the maximum extent possible.
    (h) Enhanced transition programs shall be established for Service 
members and their families who are overseas to help alleviate the 
special difficulties overseas personnel encounter when job and house 
hunting.
    (i) Installations in the United States shall give priority 
transition assistance to personnel who recently returned from overseas.



Sec. 88.5  Responsibilities.

    (a) The Assistant Secretary of Defense for Personnel and Readiness 
shall; (1) Issue guidance on transition assistance programs for Service 
members and their families, as necessary.
    (2) Coordinate, as necessary, within the Department of Defense to 
ensure the availability of high quality, equitable, and cost-effective 
transition programs among the Military Services.
    (3) Coordinate with and seek the assistance of the Departments of 
Labor and Veterans Affairs, and other Federal Agencies to facilitate 
delivery of high quality transition assistance programs to separating 
Service members.
    (4) Evaluate the level of resources needed to deliver quality 
transition

[[Page 515]]

programs and facilitate efforts to obtain these resources.
    (5) Monitor and evaluate the overall effectiveness of transition 
assistance programs.
    (6) Coordinate with theater commanders, though the Chairman of the 
Joint Chiefs of Staff, on transition assistance programs (job fairs and 
training conferences, for example) impacting overseas Unified Combatant 
Commands.
    (7) Establish the Department of Defense Service Member Transition 
Assistance Coordinating Committee, consisting of representatives from 
the Military Services and Assistant Secretary of Defense for Personnel 
and Readiness. The purpose of this committee is to provide DoD-level 
direction and coordination for transition assistance programs.
    (8) Collect data to determine systematically the degree to which 
transition assistance programs satisfy the needs of transitioning 
Service members and their families.
    (9) Review, modify, and reissue policy guidance, as required.
    (b) The Assistant Secretary of Defense for Reserve Affairs shall 
establish and publish guidance on transition assistance programs for 
Reserve personnel and their families.
    (c) The Assistant Secretary of Defense for Health Affairs shall 
establish guidance on transitional medical and dental care, including 
health insurance and preexisting conditions coverage, for Service 
members and their families.
    (d) The Secretaries of the Military Departments shall ensure 
compliance with the criteria in Public Law 101-510, 102-190, and 102-
484, as amended, and the following provisions:
    (1) Preparation counseling shall be available no later than 90 days 
before separation to all separating Service members.
    (2) High quality transition counseling and employment assistance 
programs are established on military facilities with more than 500 
Service members permanently assigned or serving at that installation.
    (3) The participation of separating Service members in transition 
assistance programs shall be coordinated with mission requirements.
    (4) Transition assistance programs are allocated the resources 
necessary to delivery quality transition assistance programs.
    (5) The Military Services are represented on the Department of 
Defense Service Member Transition Assistance Coordinating Committee. 
Each of the Military Services may invite an installations-level 
transition manager to participate.
    (6) Quarterly reports on the status of transition programs are 
submitted to the Assistant Secretary of Defense for Personnel and 
Readiness beginning the second quarter after this publication is 
published, and continuing each quarter until cancellation of this part.
    (7) The Inspector General of each Military Service shall review and 
report compliance with Sec. 88.5(d)(1) through (d)(6) to the Service 
Secretary, on an annual basis, due no later than January 31 of the next 
calendar year.



Sec. 88.6  Information requirements.

    The quarterly report requirement in Sec. 88.5(d)(6) has been 
assigned Report Control Symbol DD-P&R(Q) 1927.



PART 89--CIVILIAN PAY ALLOTMENTS--Table of Contents




Sec.
89.1  Reissuance and purpose.
89.2  Applicability and scope.
89.3  Definitions.
89.4  Criteria and standards.

Enclosure 1

    Authority: 5 U.S.C. 5525.

    Source: 44 FR 24548, Apr. 26, 1979, unless otherwise noted.



Sec. 89.1  Reissuance and purpose.

    This part updates the uniform policies established in implementation 
of Office of Personnel Management (OPM) Regulation, ``Allotments and 
Assignments from Federal Employees (5 CFR 550.301) and Treasury Fiscal 
Requirements Manual for Guidance of Departments and Agencies (volume 1, 
part 3, ``Payrolls, Deductions and Withholdings'') and to provide for 
allotments to professional and other organizations as authorized by 
Federal Personnel Manual (chapter 252, Professional and other 
Associations).

[[Page 516]]



Sec. 89.2  Applicability and scope.

    The provisions of this part apply to the Office of the Secretary of 
Defense, the Military Departments, and the Defense Agencies and govern 
the policy under which civilian employees may make allotments of their 
pay.



Sec. 89.3  Definitions.

    Selected Terms used are defined below:
    (a) Allotment. A recurring, specified deduction from pay authorized 
by a civilian employee to be paid to an allottee.
    (b) Allottee. The person or institution to whom an allotment is made 
payable.
    (c) Allotter. The employee from whose civilian pay the allotment is 
made.
    (d) Pay. The net pay due an employee after all deductions authorized 
by law (such as retirement, social security, Federal and State 
withholding tax, health benefits, and group life insurance) have been 
made.
    (e) Continental United States. The several States and the District 
of Columbia, but excluding Alaska and Hawaii.



Sec. 89.4  Criteria and standards.

    (a) Authorized allotments. Allotments may be made for the following 
purposes:
    (1) Support of relatives or dependents of the allotter.
    (2) Savings.
    (i) Unrestricted as to allottee. Two such allotments may be 
authorized an eligible employee at any one time. The eligibility 
criteria are specified in paragraph (b)(1) of this section.
    (ii) Allotted to a financial organization for credit to a savings 
account of the allotter as authorized by the Treasury Fiscal 
Requirements Manual. Only two such allotments, in whole dollars, under 
this provision shall be allowed an eligible employee. Eligibility 
criteria are specified in paragraph (b)(2) of this section. Monies thus 
credited to the allotter's savings account may be used for any purpose 
in accordance with the desires and direction of the allotter as long as 
that purpose does not circumvent any statute, executive order or other 
applicable regulation.
    (3) Payment of commercial insurance premiums on the life of the 
allotter.
    (4) Payments of U.S. Government Life Insurance or National Service 
Life Insurance premiums.
    (5) Voluntary liquidation of indebtedness to the U.S. Government.
    (6) Repayment of loans obtained for the purchase of a home.
    (7) Payment of certain State and District of Columbia income taxes 
as authorized by OPM Regulation and the Treasury Fiscal Requirements 
Manual.
    (8) Payment of certain city income taxes as authorized by OPM 
Regulation and the Treasury Fiscal Requirements Manual.
    (9) Payment of labor organization dues as authorized by DoD 
Directive 1426.1, \1\ ``Labor-Management Relations in the Department of 
Defense''.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, PA. 
19120. Attention: Code: 301.
---------------------------------------------------------------------------

    (10) Charitable contributions to a Combined Federal Campaign as 
authorized by DoD Directive 5035.1, \1\ ``Fund-Raising within the 
Department of Defense'' and DoD Instruction 5035.5, \1\ ``DoD Combined 
Federal Campaign--Overseas Area (CFC-OA)''.
    (11) Purchase of U.S. savings bonds. Employees normally will be 
permitted only two such allotments at any one time. Additional 
allotments for amounts of $18.75 or more in approved increments may be 
authorized to the extent the pay system can accommodate such allotments.
    (12) Payment of dues to a professional or other association. One 
allotment in a calendar year may be made by an employee to an 
association when the association:
    (i) Provides some worthwhile function or service that would 
contribute to the agency's mission and programs or to the morale and 
welfare of the agency's employees. (See also DoD Instruction 
5010.30,1 ``Intramanagement Communication and 
Consultation''.)
    (ii) Has a sufficient number of members who request dues withholding 
to justify the administrative arrangements required; that is, a minimum 
of either 50 participants, or 1 percent of the total number, paid by the 
payroll office. This criterion may be waived by the Assistant Secretary 
of Defense

[[Page 517]]

(Manpower, Reserve Affairs, and Logistics) for associations of 
supervisors when circumstances warrant.
    (iii) Is not a labor organization eligible for recognition under DoD 
Directive 1426.1 \1\ does not have the characteristics or purposes of a 
labor organization, and is not affiliated with a labor organization or 
federation of labor organizations.
    (iv) Is a lawful nonprofit organization. The organization's 
constitution and bylaws must indicate that the organization subscribes 
to certain minimum standards of fiscal responsibility and that it 
employs democratic principles in the nomination and election of 
officers.
    (v) Does not discriminate in regard to the terms or conditions of 
membership because of race, color, creed, sex, age, or national origin.
    (vi) Does not advocate and has not assisted or participated in a 
strike, work stoppage, or slowdown against the Government of the United 
States or any agency thereof, nor does it impose a duty or obligation on 
its members to conduct, assist, or participate in such a strike.
    (vii) Does not advocate the overthrow of the constitutional form of 
Government in the United States.
    (viii) Agrees to reimburse the United States for the full cost of 
establishing the allotment and making payment to the organization. Such 
costs will not be passed on to the employee by any special charge or 
assessment in excess of that paid by other members. This reimbursement 
may be waived, in whole or in part, by the ASD (MRA&L) for associations 
of supervisors when warranted.
    (ix) Meets any additional criteria imposed by the Military 
Departments or Defense Agencies, or by the individual payroll offices.
    (b) Eligibility rules. Eligibility for the making of an allotment is 
dependent on such factors as residents of employee, place of employment 
and type of allotment desired. The specific rules listed below are 
summarized in the table ``Allotments of Pay,'' enclosure 1. The table is 
in general terms and is for general guidance only. The specific rules 
are listed below:
    (1) An employee may make an allotment of pay as provided in 
paragraphs (a) (1), (2)(i), (3) through (6), (11), and (12) of this 
section when the employee is:
    (i) Assigned to a post of duty outside the continental United 
States;
    (ii) Working on an assignment away from his regular post of duty 
when the assignment is expected to continue for 3 months or more;
    (iii) Serving as an officer or member of a crew of a vessel under 
the control of the Federal Government.
    (2) An employee whose place of employment is within the continental 
United States may authorize an allotment of pay as provided in paragraph 
(a) (2)(ii) and (5), (11), and (12) of this section.
    (3) An employee, who is employed outside of, but is a resident in, a 
State or the District of Columbia with which the Department of the 
Treasury has entered into an agreement to withhold income taxes from the 
pay of employees in accordance with the procedures prescribed in the 
Treasury Fiscal Requirements Manual, may make an allotment of pay for 
the purpose specified in paragraph (a)(7).
    (4) An employee, who is employed in, or a resident of, a city with 
which the Department of the Treasury has entered into an agreement to 
withhold city income taxes in accordance with the procedures prescribed 
in the Treasury Fiscal Requirements Manual, may make an allotment of pay 
for the purpose specified in paragraph (a)(8).
    (5) An employee who meets the eligibility requirements prescribed in 
DoD Directive 1426.1, \1\ may make an allotment of pay for the purpose 
specified in paragraph (a)(9) of this section.
    (6) An employee who meets the eligibility requirements prescribed in 
DoD Directive 5035.11may make an allotment of pay for the 
purpose specified in Sec. 89.4(a)(10).
---------------------------------------------------------------------------

    1 See footnote 1 to this section.
---------------------------------------------------------------------------

    (c) Emergency allotments. Allotments may be authorized to become 
effective during an emergency evacuation in accordance with provisions 
of the OPM Regulation, such allotments will not become effective until 
an evacuation order has been issued.

[[Page 518]]

    (d) Allotments for foreign nationals. Foreign nationals employed by 
the Department of Defense (DoD) and working outside their own country on 
assignments of three or more months duration may be permitted to make 
allotments for any of the purposes authorized in paragraph (a) of this 
section, providing all other provisions of this part are observed.
    (1) Foreign nationals employed by the DoD to work in their own 
countries or in the Canal Zone may be permitted to make allotments for 
the purposes shown in paragraph (a) (9) and (10) of this section, and to 
pay premiums on group health benefits and group life insurance.
    (2) Foreign nationals may be permitted to make other allotments from 
pay when such allotments are based on local customs and practices or are 
pursuant to treaties or country-to-country agreements.
    (e) Allotment limitations. (1) A power of attorney will not be 
accepted to establish, change, or discontinue an allotment.
    (2) Allotment payments shall be made in accordance with the schedule 
established by the particular department or agency of the DoD, provided 
such allotment checks are not issued until the related earnings have 
accrued. This shall be stipulated as a requirement for the allotment.
    (3) Except as provided by paragraph (a)(2) and (11), a DoD employee 
shall not have more than one allotment payable to the same allottee at 
the same time.
    (4) Allotments will not exceed the pay due the allotter.
    (f) Discontinuance of allotments. Allotments will be discontinued:
    (1) Upon receipt of: (i) Notice of retirement, separation, or death 
of the allotter;
    (ii) Notice that the allotter has been placed in an extended leave 
without pay status;
    (iii) Written notice from the allotter unless this right is 
otherwise restricted by law;
    (iv) Notice of death of the allottee; or
    (v) Notice that the whereabouts of the allottee is unknown.
    (2) When the conditions under which an allotment was permitted no 
longer exist.

[[Page 519]]

Pt. 89, Encl.

                                                                                    Table--Allotments of Pay                                                                                    
                                                                                          [Enclosure 1]                                                                                         
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        Authorized allotments                                                                   
                                   -------------------------------------------------------------------------------------------------------------------------------------------------------------
                                        1.a       1.b(1)      1.b(2)        1.c         1.d          1.e         1.f        1.g        1.h          1.i         1.j        1.k          1.l     
         Allotment of pay may be   -------------------------------------------------------------------------------------------------------------------------------------------------------------
       authorized for the purposes                                                   National                                                                                                   
Rule   indicated when the employee                                                    Service                                                                                                   
                   is:              Support of              Financial   Commercial      and     Indebtedness  Home loan    State       City        Labor      Combined   Savings    Professional
                                    dependents   Savings   institution     life     Government     to U.S.    repayment    income     income   organization   Federal     bonds      and other  
                                                             account     insurance     life      Government                 tax        tax         dues       Campaign             organizations
                                                                                     insurance                                                                                                  
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 2.aAssigned to a post of duty             X          X  ...........           X           X            X           X  .........  .........  ............  .........          X            X    
     outside the U.S., away from                                                                                                                                                                
     regular duty post over                                                                                                                                                                     
     three months or on duty on                                                                                                                                                                 
     a vessel under U.S.                                                                                                                                                                        
     Government control                                                                                                                                                                         
 2.bWorking within the United     ..........  .........           X   ..........  ..........            X   .........  .........  .........  ............  .........          X            X    
     States                                                                                                                                                                                     
 2.cWorking outside State of      ..........  .........  ...........  ..........  ..........  ............  .........          X  .........  ............  .........  .........  .............  
     residence and U.S.                                                                                                                                                                         
     Government has a                                                                                                                                                                           
     withholding agreement                                                                                                                                                                      
 2.dWorking or living in a city   ..........  .........  ...........  ..........  ..........  ............  .........  .........          X  ............  .........  .........  .............  
     with which U.S. Government                                                                                                                                                                 
     has a withholding agreement                                                                                                                                                                
 2.eA member of a labor/employee  ..........  .........  ...........  ..........  ..........  ............  .........  .........  .........            X   .........  .........  .............  
     organization for which                                                                                                                                                                     
     employer has agreed to                                                                                                                                                                     
     collect dues                                                                                                                                                                               
 2.fWorking in an area            ..........  .........  ...........  ..........  ..........  ............  .........  .........  .........  ............          X  .........  .............  
     participating in a Combined                                                                                                                                                                
     Federal Campaign                                                                                                                                                                           
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
    Note: The letter and number identifying each rule and allotment purpose references the subsection and paragraph of section D in the Directive that provide a complete description.          


[[Page 520]]



PART 93--ACCEPTANCE OF SERVICE OF PROCESS; RELEASE OF OFFICIAL INFORMATION IN LITIGATION; AND TESTIMONY BY NSA PERSONNEL AS WITNESSES--Table of Contents




Sec.
93.1  References.
93.2  Purpose and applicability.
93.3  Definitions.
93.4  Policy.
93.5  Procedures.
93.6  Fees.
93.7  Responsibilities.

    Authority: E.O. 12333, 3 CFR, 1981 Comp., p. 200; 50 U.S.C. apps. 
401, 402.

    Source: 56 FR 51328, Oct. 11, 1991, unless otherwise noted.



Sec. 93.1  References.

    (a) DoD Directive 5405.2,\1\ ``Release of Official Information in 
Litigation and Testimony by DoD Personnel as Witnesses,'' July 23, 1985, 
reprinted in 32 CFR part 97.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    (b) E.O. 12333, United States Intelligence Activities, 3 CFR, 1981 
Comp., p. 200, reprinted in 50 U.S.C. app. 401.
    (c) The National Security Agency Act of 1959, Public Law No. 86-36, 
as amended, 50 U.S.C. app. 402.
    (d) Rule 4, Federal Rules of Civil Procedure.
    (e) DoD Instruction 7230.7,\2\ ``User Charges'', January 29, 1985.
---------------------------------------------------------------------------

    \2\ See footnote 1 to Sec. 93.1(a).
---------------------------------------------------------------------------

    (f) 28 CFR 50.15.



Sec. 93.2  Purpose and applicability.

    (a) This part implements Sec. 93.1(a) in the National Security 
Agency/Central Security Service including all field sites (hereinafter 
referred to collectively as NSA). The procedures herein are also 
promulgated pursuant to the NSA's independent authority, under 
Sec. 1.12(b)(10) of E.O. 12333 referenced under Sec. 93.1(b), to protect 
the security of its activities, information and employees. This part 
establishes policy, assigns responsibilities, and prescribes mandatory 
procedures for service of process at NSA and for the release of official 
information in litigation by NSA personnel, through testimony or 
otherwise.
    (b) This part is intended only to provide guidance for the internal 
operation of the NSA and does not create any right or benefit, 
substantive or procedural, enforceable at law against the United States, 
the Department of Defense, or NSA. This part does not override the 
statutory privilege against the disclosure of the organization or any 
function of the NSA, of any information with respect to the activities 
thereof, or of the names, titles, salaries, or numbers of the persons 
employed by the NSA. See section 6(a) of the DoD Directive referenced 
under Sec. 93.1(a).



Sec. 93.3  Definitions.

    (a) Service of process. Refers to the delivery of a summons and 
complaint, or other document the purpose of which is to give notice of a 
proceeding or to establish the jurisdiction of a court or administrative 
proceeding, in the manner prescribed by Sec. 93.1(d), to an officer or 
agency of the United States named in court or administrative 
proceedings.
    (b) Demand. Refers to the delivery of a subpoena, order, or other 
directive of a court of competent jurisdiction, or other specific 
authority, for the production, disclosure, or release of official 
information, or for the appearance and testimony of NSA personnel as 
witnesses.
    (c) NSA personnel. (or NSA person) Includes present and former 
civilian employees of NSA (including non-appropriated fund activity 
employees), and present and former military personnel assigned to NSA. 
NSA personnel also includes non-U.S. nationals who perform services 
overseas for NSA under the provisions of status of forces or other 
agreements, and specific individuals hired through contractual 
agreements by or on behalf of NSA.
    (d) Litigation. Refers to all pretrial, trial, and post-trial stages 
of all existing or reasonably anticipated judicial or administrative 
actions, hearings, investigations, or similar proceedings before 
civilian courts, commissions, boards, or other tribunals, foreign and 
domestic. It includes responses to discovery requests, depositions, and 
other

[[Page 521]]

pretrial proceedings, as well as responses to formal or informal 
requests by attorneys or others in situations involving litigation.
    (e) Official information. Is information of any kind, in any storage 
medium, whether or not classified or protected from disclosure by 
Sec. 93.l(c) that:
    (1) Is in the custody and control of NSA; or
    (2) Relates to information in the custody and control of NSA; or
    (3) Was acquired by NSA personnel as part of their official duties 
or because of their official status within NSA.
    (f) General Counsel. Refers to the NSA General Counsel (GC), or in 
the GC's absence, the NSA Deputy GC, or in both of their absences, the 
NSA Assistant GC (Administration/Litigation).
    (g) NSA attorney. Refers to an attorney in the NSA Office of General 
Counsel (OGC).



Sec. 93.4  Policy.

    Official information that is not classified, privileged, or 
otherwise protected from public disclosure, should generally be made 
reasonably available for use in Federal and State courts and by other 
governmental bodies.



Sec. 93.5  Procedures.

    (a) Release of official information in litigation. NSA personnel 
shall not produce, disclose, release, comment upon, or testify 
concerning any official information during litigation without the prior 
written approval of the GC. In exigent circumstances, the GC may issue 
oral approval, but a record of such approval will be made and retained 
in the OGC. NSA personnel shall not provide, with or without 
compensation, opinion or expert testimony concerning official NSA 
information, subjects, or activities, except on behalf of the United 
States or a party represented by the Department of Justice (DoJ). Upon a 
showing by the requester of exceptional need or unique circumstances and 
that the anticipated testimony will not be adverse to the interests of 
the NSA or the United States, the GC may, in writing, grant special 
authorization for NSA personnel to appear and testify at no expense to 
the United States. Official information may be released in litigation 
only in compliance with the following procedures.
    (1) If official information is sought, through testimony or 
otherwise, by a litigation demand, the individual seeking such release 
or testimony must set forth, in writing and with as much specificity as 
possible, the nature and relevance of the official information sought. 
Subject to paragraph (a)(5) of this section, NSA personnel may only 
produce, disclose, release, comment upon or testify concerning those 
matters that were specified in writing and approved by the GC.
    (2) Whenever a litigation demand is made upon NSA personnel for 
official information or for testimony concerning such information, the 
person upon whom the demand was made shall immediately notify the OGC. 
After consultation and coordination with the DoJ, if required, the GC 
shall determine whether the individual is required to comply with the 
demand and shall notify the requester or the court or other authority of 
that determination.
    (3) If a litigation demand requires a response before instructions 
from the GC are received, the GC shall furnish the requester or the 
court or other authority with a copy of Sec. 93.1(a) and this part 93. 
The GC shall also inform the requester or the court or other authority 
that the demand is being reviewed, and seek a stay of the demand pending 
a final determination.
    (4) If a court or other authority declines to stay the demand in 
response to action taken pursuant to paragraph 3 of this section, or if 
such court or other authority orders that the demand must be complied 
with notwithstanding the final decision of the GC, the NSA personnel 
upon whom the demand was made shall notify the GC of such ruling or 
order. If the GC determines that no further legal review of or challenge 
to the ruling or order will be sought, the affected NSA personnel shall 
comply with the demand or order. If directed by the GC, however, the 
affected NSA personnel must decline to

[[Page 522]]

provide the information.\3\ The NSA personnel shall state the following 
to the Court:
---------------------------------------------------------------------------

    \3\ See United States ex rel. Touhy v. Ragen, 340 U.S. 462 (1951) 
wherein the Supreme Court held that a government employee could not be 
held in contempt for following an agency regulation requiring agency 
approval before producing government information in response to a court 
order.

    ``I must respectfully advise the Court that under instructions given 
to me by the General Counsel of the National Security Agency, in 
accordance with Department of Defense Directive 5405.2 and NSA 
Regulation 10-62, I must respectfully decline to [produce/disclose] that 
---------------------------------------------------------------------------
information.''

    (5) In the event NSA personnel receive a litigation demand for 
official information originated by another U.S. Government component, 
the GC shall forward the appropriate portions of the request to the 
other component. The GC shall notify the requester, court, or other 
authority of the transfer, unless such notice would itself disclose 
classified information.
    (b) Acceptance of service of process. The following are mandatory 
procedures for accepting service of process for NSA personnel sued or 
summoned in their official capacities, and for attempting service of 
process on NSA premises.
    (1) Service on NSA or on NSA personnel in their official capacities. 
Sec. 93.1(d) requires service of process on the NSA or NSA personnel 
sued or summoned in their official capacity to be made by serving the 
United States Attorney for the district in which the action is brought, 
and by sending copies of the summons and complaint by registered or 
certified mail to the Attorney General of the United States and to the 
NSA or such NSA personnel. Only the GC or an NSA attorney is authorized 
to accept the copies of the summons and complaint sent to the NSA or NSA 
personnel pursuant to Sec. 93.1(d). Acceptance of the copies of the 
summons and complaint by the GC or an NSA attorney does not constitute 
an admission or waiver with respect to the validity of the service of 
process or of the jurisdiction of the court or other body. Such copies 
shall be sent by registered or certified mail to: General Counsel, 
National Security Agency, 9800 Savage Road, Fort George G. Meade, MD 
20755-6000. The envelope shall be conspicuously marked ``Copy of Summons 
and Complaint Enclosed.'' Except as provided in paragraph (b)(3) of this 
section, no other person may accept the copies of the summons and 
complaint for NSA or NSA personnel sued or summoned in their official 
capacities, including the sued or summoned NSA personnel, without the 
prior express authorization of the GC.
    (i) Parties who wish to deliver, instead of sending by registered or 
certified mail, the copies of the service of process to NSA or to NSA 
personnel sued or summoned in their official capacities, will comply 
with the procedures for service of process on NSA premises in paragraph 
(b) of this section.
    (ii) Litigants may attempt to serve process upon NSA personnel in 
their official capacities at their residences or other places. Because 
NSA personnel are not authorized to accept such service of process, such 
service is not effective under Sec. 93.1(d). NSA personnel should refuse 
to accept service. However, NSA personnel may find it difficult to 
determine whether they are being sued or summoned in their private or 
official capacity. Therefore, NSA personnel shall notify the OGC as soon 
as possible if they receive any summons or complaint that appears to 
relate to actions in connection with their official duties so that the 
GC can determine the scope of service.
    (2) Service upon NSA personnel in their individual capacities on NSA 
premises. Service of process is not a function of NSA. An NSA attorney 
will not accept service of process for NSA personnel sued or summoned in 
their individual capacities, nor will NSA personnel be required to 
accept service of process on NSA premises. Acceptance of such service of 
process in a person's individual capacity is the individual's 
responsibility. NSA does, however, encourage cooperation with the courts 
and with judicial officials.
    (i) When the NSA person works at NSA Headquarters at Fort George G. 
Meade, Maryland, the process server should first telephone the OGC on 
(301) 688-6054, and attempt to schedule a time for the NSA person to 
accept

[[Page 523]]

process. If the NSA person's affiliation with NSA is not classified, the 
NSA attorney will communicate with the NSA person and serve as the 
contact point for the person and the process server. If the person 
consents to accept service of process, the NSA attorney will arrange a 
convenient time for the process server to come to NSA, and will notify 
the Security Duty Officer of the arrangement.
    (ii) A process server who arrives at NSA during duty hours without 
first having contacted the OGC, will be referred to the Visitor Control 
Center (VCC) at Operations Building 2A. The VCC will contact the OGC. If 
an NSA attorney is not available, the process server will be referred to 
the Security Duty Officer, who will act in accordance with Office of 
Security (M5) procedures approved by the GC. Service of process will not 
be accepted during non-duty hours unless prior arrangements have been 
made by the OGC. For purposes of this part, duty hours at NSA 
Headquarters are 0800 to 1700, Monday through Friday, excluding legal 
holidays. A process server who arrives at NSA during non-duty hours 
without having made arrangements through the OGC to do so will be told 
to call the OGC during duty hours to arrange to serve process.
    (iii) Upon being notified that a process server is at the VCC, an 
NSA attorney will review the service of process and determine whether 
the NSA person is being sued or summoned in his official or individual 
capacity. (If the person is being sued or summoned in his or her 
official capacity, the NSA attorney will accept service of process by 
noting on the return of service form that ``service is accepted in 
official capacity only.'') If the person is being sued or summoned in 
his or her individual capacity, the NSA attorney will contact that 
person to see if that person will consent to accept service.
    (3) Procedures at field activities. Chiefs of NSA field activities 
may accept copies of service of process for themselves or NSA personnel 
assigned to their field component who are sued or summoned in their 
official capacities. Field Chiefs or their designees will accept by 
noting on the return of service form that ``service is accepted in 
official capacity only.'' The matter will then immediately be referred 
to the GC. Additionally, Field Chiefs will establish procedures at the 
field site, including a provision for liaison with local judge 
advocates, to ensure that service of process on persons in their 
individual capacities is accomplished in accordance with local law, 
relevant treaties, and Status of Forces Agreements. Such procedures must 
be approved by the GC. Field Chiefs will designate a point of contact to 
conduct liaison with the OGC.
    (4) No individual will confirm or deny that the person sued or 
summoned is affiliated with NSA until a NSA attorney or the Field Chief 
has ascertained that the individual's relationship with NSA is not 
classified. If the NSA person's association with NSA is classified, 
service of process will not be accepted. In such a case, the GC must be 
immediately informed. The GC will then contact the DoJ for guidance.
    (5) Suits in Foreign Courts. If any NSA person is sued or summoned 
in a foreign court, that person, or the cognizant Field Chief, will 
immediately telefax a copy of the service of process to the OGC. Such 
person will not complete any return of service forms unless advised 
otherwise by an NSA attorney. OGC will coordinate with the DoJ to 
determine whether service is effective and whether the NSA person is 
entitled to be represented at Government expense pursuant to 
Sec. 93.1(f).



Sec. 93.6  Fees.

    Consistent with the guidelines in Sec. 93.1(e), NSA may charge 
reasonable fees to parties seeking, by request or demand, official 
information not otherwise available under the Freedom of Information 
Act, 5 U.S.C. 552. Such fees are calculated to reimburse the Government 
for the expense of providing such information, and may include:
    (a) The costs of time expended by NSA employees to process and 
respond to the request or demand;
    (b) Attorney time for reviewing the request or demand and any 
information located in response thereto, and for related legal work in 
connection with the request or demand; and
    (c) Expenses generated by materials and equipment used to search 
for,

[[Page 524]]

produce, and copy the responsive information.



Sec. 93.7  Responsibilities.

    (a) The General Counsel. The GC is responsible for overseeing NSA 
compliance with Sec. 93.1(a) and this part 93, and for consulting with 
DoJ when appropriate. In response to a litigation demand requesting 
official information or the testimony of NSA personnel as witnesses, the 
GC will coordinate NSA action to determine whether official information 
may be released and whether NSA personnel may be interviewed, contacted, 
or used as witnesses. The GC will determine what, if any, conditions 
will be imposed upon such release, interview, contact, or testimony. In 
most cases, an NSA attorney will be present when NSA personnel are 
interviewed or testify concerning official information. The GC may 
delegate these authorities.
    (b) The Deputy Director for Plans and Policy (DDPP). The DDPP will 
assit the GC, upon request, in identifying and coordinating with NSA 
components that have cognizance over official information requested in a 
litigation demand. Additionally, the DDPP will advise the GC on the 
classified status of official information, and, when necessary, assist 
in declassifying, redacting, substituting, or summarizing official 
information for use in litigation. The DDPP may require the assistance 
of other Key Component Chiefs.
    (c) Chiefs of Key Components and Field Activities. Chiefs of Key 
Components and Field Activities shall ensure that their personnel are 
informed of the contents of this part 93, particularly of the 
requirements to consult with the OGC prior to responding to any 
litigation demand, and to inform the OGC whenever they receive service 
of process that is not clearly in their individual capacities. Field 
Chiefs will notify the OGC of the persons they designate under 
Sec. 93.5(b)(3).
    (d) The Deputy Director for Administration (DDA). Within 60 days of 
the date of this part, the DDA shall submit to the GC for approval 
procedures for the attempted delivery of service of process during duty 
hours when an attorney of the OGC is not available.



 PART 94--NATURALIZATION OF ALIENS SERVING IN THE ARMED FORCES OF THE UNITED STATES AND OF ALIEN SPOUSES AND/OR ALIEN ADOPTED CHILDREN OF MILITARY AND CIVILIAN 

PERSONNEL ORDERED OVERSEAS--Table of Contents




Sec.
94.1  Purpose.
94.2  Applicability.
94.3  Definitions.
94.4  Policy and procedures.
94.5  Forms required.

    Authority: Sec. 301, 80 Stat. 379; 5 U.S.C. 301.

    Source: 35 FR 17540, Nov. 14, 1970, unless otherwise noted.



Sec. 94.1  Purpose.

    This part prescribes uniform procedures acceptable to the 
Immigration and Naturalization Service of the Department of Justice, to 
(a) facilitate the naturalization of aliens who have served honorably in 
the Armed Forces of the United States and to (b) militarily certify 
alien dependents seeking naturalization under the provisions of 
Immigration and Nationality Act of 1952, as amended, sections 319(b) and 
323(c) (8 U.S.C. 1430(b) and 1434(c)); and furnishes policy guidance to 
the Secretaries of the Military Departments governing discharge or 
release from active duty in the Armed Forces of the United States of 
permanent-residence aliens who desire to be naturalized as U.S. citizens 
under the provisions of Act of June 27, 1952, section 328 (66 Stat. 
249); 8 U.S.C. 1439.



Sec. 94.2  Applicability.

    The provisions of this part apply to the Military Departments.



Sec. 94.3  Definitions.

    (a) Permanent-residence alien is an alien admitted into the United 
States under an immigration visa for permanent residence; or an alien, 
who, after admission without an immigrant visa, has had his status 
adjusted to that of an alien lawfully admitted for permanent residence.
    (b) Armed Forces of the United States denotes collectively all 
components of

[[Page 525]]

the Army, Navy, Air Force, Marine Corps, and Coast Guard.



Sec. 94.4  Policy and procedures.

    (a) Naturalization of an alien who has served honorably in the Armed 
Forces of the United States at any time. (1) Under the provisions of Act 
of June 27, 1952, section 328 (66 Stat. 249); 8 U.S.C. 1439, an alien 
who has served in the Armed Forces of the United States for a period(s) 
totaling three (3) years may be naturalized if he:
    (i) Has been lawfully admitted to the United States for permanent 
residence;
    (ii) Was separated from the military service under honorable 
conditions;
    (iii) Files a petition while still in the military service, or 
within six (6) months after the termination of such service; and
    (iv) Can comply in all other respects with the Immigration and 
Nationality Act of 1952, except that (a) no period of residence or 
specified period of physical presence in the United States or the State 
in which the petition for naturalization is filed is required, and (b) 
residence within the jurisdiction of the court is not required.
    (2) The prescribed 3-year period may be satisfied by a combination 
of active duty and inactive duty in a reserve status.
    (3) An alien member desiring to fulfill naturalization requirements 
through military service shall not be separated prior to completion of 
three (3) full years of active duty unless:
    (i) His performance or conduct does not justify retention, in which 
case he shall be separated in accordance with the provisions of part 41 
of this subchapter and chapter 47, title 10, United States Code (Uniform 
Code of Military Justice), as appropriate; or
    (ii) He is to be transferred to inactive duty in a reserve component 
in order to:
    (a) Complete a reserve obligation under the provisions of part 50 of 
this subchapter, or
    (b) Attend a recognized institution of learning under the early 
release program, as provided in DoD Instruction 1332.15, ``Early Release 
of Military Enlisted Personnel for College or Vocational/Technical 
School Enrollment,'' January 26, 1970. \1\
---------------------------------------------------------------------------

    \1\ Filed as part of original. Copies available from the U.S. Naval 
Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, PA. 
19120, Attention: Code 300.
---------------------------------------------------------------------------

    (4) Caution shall be exercised to ensure that an alien's affiliation 
with the Armed Forces of the United States, whether on active duty or on 
inactive duty in a reserve status, is not terminated even for a few days 
short of the 3-year statutory period, since failure to comply with the 
exact 3-year requirement of Act of June 27, 1952, section 328 (66 Stat. 
249); 8 U.S.C. 1439 will automatically preclude a favorable 
determination by the Immigration and Naturalization Service on any 
petition for naturalization based on an alien's military service.
    (5) During a period of hostilities, as designated by the President 
of the United States, the expeditious naturalization provisions outlined 
in paragraph (b) of this section, will take precedence over the 
foregoing.
    (b) Naturalization of an alien who has served in the Armed Forces of 
the United States during a period of hostilities as designated by the 
President of the United States. (1) Under the provisions of Immigration 
and Nationality Act of 1952, as amended, section 329 (8 U.S.C. 1440), an 
alien who serves honorably on active duty in the Armed Forces of the 
United States during the period beginning February 28, 1961, and ending 
on a date designated by the President, by Executive order, as the date 
of termination of the Vietnam hostilities, or during any future period 
which President, by Executive order, shall designate as a period in 
which the Armed Forces of the United States are or were engaged in 
military operations involving armed conflict with a hostile foreign 
force, and who is otherwise eligible, may be naturalized whether or not 
he has been lawfully admitted to the United States for permanent 
residence, if the member was inducted, enlisted, or reenlisted in the 
United States (inclusive of Puerto Rico, Guam, Virgin Islands, Canal 
Zone, American Samoa, or Swains Island).
    (i) The induction, enlistment, or reenlistment in the United States 
or its

[[Page 526]]

stated possessions must actually be in these land areas, in ports, 
harbors, bays, enclosed sea areas along their routes, or within a 
marginal belt of the sea extending from the coastline outward three (3) 
geographical miles.
    (ii) Enlistment or reenlistment aboard a ship on the high seas or in 
foreign waters does not meet the requirements of Immigration and 
Nationality Act of 1952, as amended, section 329 (8 U.S.C. 1440). In 
such instances, the provisions of paragraph (a) of this section may 
apply.
    (2) Each Military Department will establish procedures containing 
the provisions outlined in paragraphs (b)(2) (i) and (ii) of this 
section. In addition, each qualifying alien shall be advised of the 
liberalized naturalization provisions of the Immigration and Nationality 
Act of 1952, as amended, section 329 (8 U.S.C. 1440), i.e., that the 
usual naturalization requirements concerning age, residence, physical 
presence, court jurisdiction and waiting periods are not applicable, and 
will be given appropriate assistance in processing his naturalization 
application in consonance with procedures contained in ``Naturalization 
Requirements and General Information,'' published by the U.S. Department 
of Justice (Form N-17).
    (i) Military basic training and orientation programs will include 
advice and assistance to interested aliens in completing and submitting 
the application and other forms required to initiate naturalization 
proceedings.
    (ii) In addition, applicants should be advised that:
    (a) Under the laws of certain foreign countries, military service in 
the Armed Forces of the United States may result in the loss of their 
native country citizenship but this same service may make them eligible 
for U.S. citizenship.
    (b) Their eligibility for naturalization, based upon the honorable 
service in an active duty status prescribed in the Immigration and 
Nationality Act of 1952, as amended, section 329 (8 U.S.C. 1440) will be 
retained, even though they apply for naturalization after their return 
to the United States following the termination or completion of their 
overseas assignment, or after their honorable discharge from the Armed 
Forces of the United States.
    (c) If they are stationed at a base in the continental United 
States, Alaska, Hawaii, Puerto Rico, Guam, or the Virgin Islands, they 
should apply for citizenship only if they expect to be stationed at the 
base for at least 60 days following application. Unless the Immigration 
and Naturalization Service has at least 60 days in which to complete the 
case, there is no assurance that it can be completed before the 
applicant is transferred, since the processing procedures outlined below 
take time and are not entirely within the control of the Immigration and 
Naturalization Service.
    (1) Every naturalization application must be processed when received 
by the Immigration and Naturalization Service. Special arrangements have 
been made to expedite the processing of petitions of alien members of 
the Armed Forces.
    (2) After processing, the alien applicant and two citizen witnesses 
must personally appear for examination by an officer of the Immigration 
and Naturalization Service in connection with the filing of a petition 
for naturalization in court.
    (3) Finally, the applicant must appear in person before the 
naturalization court on a date set by the court so that he may be 
admitted to citizenship.
    (d) If the alien member is scheduled for overseas assignment where 
naturalization courts are not available, he should apply for 
naturalization on the earliest possible date but no later than 60 days 
before departure for overseas assignment. No assurance that processing 
will be completed before the applicant's departure for overseas will be 
given by the Immigration and Naturalization Service unless it has 60 
days to complete the matter.
    (1) An alien serviceman who is serving overseas and has submitted or 
submits the required naturalization application and forms to the 
Immigration and Naturalization Service may not be granted ordinary 
leave, or Rest and Recuperation (R&R) leave (where authorized in 
overseas areas) for naturalization purposes, unless a written 
notification from the Immigration and Naturalization Service has been 
received by

[[Page 527]]

the serviceman informing him that the processing of his application has 
been completed, and requesting him to appear with two U.S. citizen 
witnesses before a representative of the Immigration and Naturalization 
Service at a designated location for the purpose of completing the 
naturalization.
    (2) If possible, an applicant granted leave for such purposes should 
advise the Immigration and Naturalization Service when he expects to 
arrive in the leave area and, in any event, should contact the 
Immigration and Naturalization Service office immediately upon arrival 
in the area. Every effort will be made to complete the naturalization 
within the leave period.
    (c) Naturalization of alien spouses and/or alien adopted children of 
military and civilian personnel ordered overseas. Alien spouses and/or 
alien adopted children of military and civilian personnel of the 
Department of Defense who are authorized to accompany or join their 
sponsors overseas and who wish to obtain U.S. citizenship prior to 
departure will be given maximum assistance by commanders of military 
installations.
    (1) DD Form 1278, ``Certificate of Overseas Assignment to Support 
Application to File Petition for Naturalization,'' \2\ will be issued to 
alien dependents by military commanders at the times indicated below in 
order that the alien may file such certificate with the nearest 
Immigration and Naturalization Service Office to initiate naturalization 
proceedings. Only DD Form 1278 will be accepted by the Immigration and 
Naturalization Service. Military commanders will not issue memoranda or 
letters of any kind in lieu thereof.
---------------------------------------------------------------------------

    \2\ Filed as part of original. Copies may be obtained from 
Departments of the Army, Navy, and Air Force.
---------------------------------------------------------------------------

    (i) When dependents are authorized automatic concurrent travel, DD 
Form 1278 will be issued not earlier than 90 days prior to the 
dependents' schedule date of travel.
    (ii) When advance application for concurrent travel is required, DD 
Form 1278 will be issued after approval is received and not earlier than 
90 days prior to the dependents' scheduled date of departure.
    (iii) When concurrent travel is not authorized, DD Form 1278 will be 
issued after authorization for dependents' movement is received and not 
earlier than 90 days prior to the dependents' scheduled date of travel.
    (2) Upon receipt of DD Form 1278, the alien will file this form, 
together with the application for petition for naturalization, 
Immigration and Naturalization Form N-400 (adult) or N-402 (child) as 
appropriate, if not previously filed, with the nearest office of the 
Immigration and Naturalization Service. The application must be 
accompanied by:
    (i) Three identical photographs.
    (ii) Form FD-358, Applicant Fingerprint Card, and
    (iii) Form G-325, Biographic Information.
    (3) Further processing of the application for citizenship is as 
prescribed by the Immigration and Naturalization Service.
    (4) Upon completion of the naturalization process, immediate 
application for passport should be made, in order that it can be issued 
prior to scheduled departure of the dependent for overseas.



Sec. 94.5  Forms required.

    The following forms required for naturalization purposes may be 
obtained from any office of the Immigration and Naturalization Service:
    (a) N-400 Application to File a Petition for Naturalization (Adult) 
(Submit original form only).
    (b) N-402 Application to File a Petition for Naturalization (Child) 
(Submit original form only).
    (c) G-325 Biographic Information (Submit original and duplicate of 
multileaf form).
    (d) G-325B Biographic Information (Submit original form only).
    (e) FD-258 Applicant Fingerprint Card (Submit one completed card).
    (f) N-426 Certificate of Military or Naval Service (Submit in 
triplicate). (Should be handled on a priority basis so as to avoid 
prejudicing the early completion of the naturalization process, 
particularly for an alien who may receive an overseas assignment.)
    (g) ``Naturalization Requirements and General Information,'' 
published

[[Page 528]]

by the U.S. Department of Justice (Form N-17) describes the 
naturalization requirements and lists Immigration and Naturalization 
offices which process applications.



PART 96--ACQUISITION AND USE OF CRIMINAL HISTORY RECORD INFORMATION BY THE MILITARY SERVICES--Table of Contents




Sec.
96.1  Purpose.
96.2  Applicability.
96.3  Definitions.
96.4  Policy.
96.5  Responsibilities.
96.6  Procedures.

    Authority: 10 U.S.C. 503, 504, 505, and 520a.

    Source: 49 FR 23042, June 4, 1984, unless otherwise noted.



Sec. 96.1  Purpose.

    Under title 10 U.S. Code, sections 503, 504, 505 and 520a, this part 
establishes policy guidance concerning the acquisition of criminal 
history record information for use in determining an enlistment 
applicant's suitability for entry and for participation in special 
programs that require a determination of trustworthiness (part 156 of 
this title), assigns responsibilities, and prescribes procedures.



Sec. 96.2  Applicability.

    This part applies to the Office of the Secretary of Defense, the 
Military Departments, and the Defense Investigative Service (DIS). The 
term ``Military Services,'' as used herein, refers to the Army, Navy, 
Air Force, and Marine Corps.



Sec. 96.3  Definitions.

    (a) Criminal history record information (with respect to any 
juvenile or adult arrest, citation, or conviction). The offense 
involved; age of the person involved; dates of arrest, citation, or 
conviction, if any; place of the alleged offense; place of arrest and 
assigned court; and disposition of the case.
    (b) Criminal justice system. State, county, and local government law 
enforcement agencies; courts and clerks of courts; and other government 
agencies authorized to collect, maintain, and disseminate criminal 
history record information.
    (c) Special programs. Military Services' programs that, because of 
their sensitivity or access to classified information, require the DIS 
to perform the investigations specified in chapter III of DoD 5200.2-R.



Sec. 96.4  Policy.

    Section 503 of title 10 U.S. Code requires the Secretaries of the 
Military Departments to conduct intensive recruiting campaigns to obtain 
enlistments. It is the policy of the Department of Defense that the 
Military Services review the background of applicants for enlistment and 
for participation in special programs to identify:
    (a) Those whose backgrounds pose serious questions as to fitness for 
service (10 U.S.C. 504 and 505) or suitability for participation in 
special programs (part 156 of this title).
    (b) Those who may not be enlisted in the Military Services unless a 
waiver is granted (section 504 of title 10, United States Code).
    (c) Those who may try to enlist fraudulently.



Sec. 96.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Manpower, Installations, and 
Logistics) shall submit the implementing Military Service regulations to 
the Senate and House Committees on Armed Services, in accordance with 
section 520a of title 10 U.S. Code.
    (b) The Secretaries of the Military Departments shall develop and 
prepare uniform implementing regulations concerning acquisition, review, 
and safeguarding of criminal history record information by recruiting 
elements to conform with section 520a of title 10 U.S. Code, policies 
stated herein and shall include in the regulations procedures on 
obtaining and reviewing criminal history record information for 
recruitment purposes and for assignment of personnel to special 
programs.
    (c) The Director, Defense Investigative Service, shall ensure that 
the acquisition of all available criminal history record information, or 
criminal history record information provided to the DIS by other 
government agencies, is safeguarded in accordance with existing

[[Page 529]]

laws or DoD regulatory documents to ensure protection of the privacy of 
the enlistment applicant on whom the record exists.



Sec. 96.6  Procedures.

    (a) Under section 520a of title 10 U.S. Code, recruiters are 
authorized to request and receive criminal history record information 
from the criminal justice system.
    (b) The Military Services shall obtain criminal history record 
information on enlistment applicants from the criminal justice system 
and from the DIS and shall review this information to determine whether 
applicants are acceptable for enlistment and for assignment to special 
programs. Recruiters shall request such information in each instance by 
addressing their requests to the criminal justice system not later than 
90 days after each application for enlistment is made.
    (c) The Military Services shall ensure the confidentiality of 
criminal history record information obtained for recruiting purposes. 
Personnel who have access to this information may not disclose it except 
for the purposes for which obtained (10 U.S.C. 520a).
    (d) The DIS shall provide additional background information to the 
Military Services as needed to determine the suitability of applicants 
for enlistment and for participation in special programs. This 
additional background information shall be provided by Entrance National 
Agency Checks (ENTNACs) and other investigations as directed by DoD 
5200.2-R.



PART 97--RELEASE OF OFFICIAL INFORMATION IN LITIGATION AND TESTIMONY BY DoD PERSONNEL AS WITNESSES--Table of Contents




Sec.
97.1  Purpose.
97.2  Applicability and scope.
97.3  Definitions.
97.4  Policy.
97.5  Responsibilities.
97.6  Procedures.

    Authority: 5 U.S.C. 301; 10 U.S.C. 133.

    Source: 50 FR 32056, Aug. 8, 1985, unless otherwise noted.



Sec. 97.1  Purpose.

    This directive establishes policy, assigns responsibilities, and 
prescribes procedures for the release of official DoD information in 
litigation and for testimony by DoD personnel as witnesses during 
litigation.



Sec. 97.2  Applicability and scope.

    (a) This directive applies to the Office of the Secretary of Defense 
(OSD), the Military Departments, the Organization of the Joint Chiefs of 
Staff (OJCS), the Unified and Specified Commands, and the Defense 
Agencies (hereafter referred to as ``DoD Components''), and to all 
personnel of such DoD Components.
    (b) This directive does not apply to the release of official 
information or testimony by DoD personnel in the following situations:
    (1) Before courts-martial convened by the authority of the Military 
Departments or in administrative proceedings conducted by or on behalf 
of a DoD Component;
    (2) Pursuant to administrative proceedings conducted by or on behalf 
of the Equal Employment Opportunity Commission (EEOC) or the Merit 
Systems Protection Board (MSPB), or pursuant to a negotiated grievance 
procedure under a collective bargaining agreement to which the 
Government is a party;
    (3) In response to requests by Federal Government counsel in 
litigation conducted on behalf of the United States;
    (4) As part of the assistance required pursuant to DoD Directive 
5220.6, ``Industrial Personnel Security Clearance Program,'' December 20 
1976; or,
    (5) Pursuant to disclosure of information to Federal, State, and 
local prosecuting and law enforcement authorities, in conjunction with 
an investigation conducted by a DoD criminal investigative organization.
    (c) This Directive does not supersede or modify existing laws or DoD 
program governing the testimony of DoD personnel or the release of 
official DoD information during grand jury proceedings, the release of 
official information not involved in litigation, or the release of 
official information pursuant to the Freedom of Information Act, 5 
U.S.C. 552, or the Privacy Act, 5 U.S.C.

[[Page 530]]

552a, nor does this Directive preclude treating any written request for 
agency records that is not in the nature of legal process as a request 
under the Freedom of Information or Privacy Acts.
    (d) This Directive is not intended to infringe upon or displace the 
responsibilities committed to the Department of Justice in conducting 
litigation on behalf of the United States in appropriate cases.
    (e) This Directive does not preclude official comment on matters in 
litigation in appropriate cases.
    (f) This Directive is intended only to provide guidance for the 
internal operation of the Department of Defense and is not intended to, 
does not, and may not be relied upon to create any right or benefit, 
substantive or procedural, enforceable at law against the United States 
or the Department of Defense.



Sec. 97.3  Definitions.

    (a) Demand. Subpoena, order, or other demand of a court of competent 
jurisdiction, or other specific authority, for the production, 
disclosure, or release of official DoD information or for the appearance 
and testimony of DoD personnel as witnesses.
    (b) DoD personnel. Present and former U.S. military personnel; 
Service Academy cadets and midshipmen; and present and former civilian 
employees of any Component of the Department of Defense, including 
nonappropriated fund activity employees; non-U.S. nationals who perform 
services overseas, under the provisions of status of forces agreements, 
for the U.S. Armed Forces; and other specific individuals hired through 
contractual agreements by or on behalf of the Department of Defense.
    (c) Litigation. All pretrial, trial, and post-trial stages of all 
existing or reasonably anticipated judicial or administrative actions, 
hearings, investigations, or similar proceedings before civilian courts, 
commissions, boards (including the Armed Services Board of Contract 
Appeals), or other tribunals, foreign and domestic. This term includes 
responses to discovery requests, depositions, and other pretrial 
proceedings, as well as responses to formal or informal requests by 
attorneys or others in situations involving litigation.
    (d) Official information. All information of any kind, however 
stored, that is in the custody and control of the Department of Defense, 
relates to information in the custody and control of the Department, or 
was acquired by DoD personnel as part of their official duties or 
because of their official status within the Department while such 
personnel were employed by or on behalf of the Department or on active 
duty with the U.S. Armed Forces.



Sec. 97.4  Policy.

    It is DoD policy that official information should generally be made 
reasonably available for use in Federal and State courts and by other 
governmental bodies unless the information is classified, privileged, or 
otherwise protected from public disclosure.



Sec. 97.5  Responsibilities.

    (a) The General Counsel, Department of Defense, shall provide 
general policy and procedural guidance by the issuance of supplemental 
instructions or specific orders concerning the release of official DoD 
information in litigation and the testimony of DoD personnel as 
witnesses during litigation.
    (b) The Heads of DoD Components shall issue appropriate regulations 
to implement this Directive and to identify official information that is 
involved in litigation.



Sec. 97.6  Procedures.

    (a) Authority to act. (1) In response to a litigation request or 
demand for official DoD information or the testimony of DoD personnel as 
witnesses, the General Counsels of DoD, Navy, and the Defense Agencies; 
the Judge Advocates General of the Military Departments; and the Chief 
Legal Advisors to the JCS and the Unified and Specified Commands, with 
regard to their respective Components, are authorized--after consulting 
and coordinating with the appropriate Department of Justice litigation 
attorneys, as required--to determine whether official information may be 
released in litigation; whether DoD personnel assigned to or affiliated 
with the Component may be interviewed,

[[Page 531]]

contacted, or used as witnesses concerning official DoD information or 
as expert witnesses; and what, if any, conditions will be imposed upon 
such release, interview, contact, or testimony. Delegation of this 
authority, to include the authority to invoke appropriate claims of 
privilege before any tribunal, is permitted.
    (2) In the event that a DoD Component receives a litigation request 
or demand for official information originated by another Component, the 
receiving Component shall forward the appropriate portions of the 
request or demand to the originating Component for action in accordance 
with this Directive. The receiving Component shall also notify the 
requestor, court, or other authority of its transfer of the request or 
demand.
    (3) Notwithstanding the provisions of paragraph (a) (1) and (2) of 
this section, the General Counsel, DoD, in litigation involving 
terrorism, espionage, nuclear weapons, intelligence means or sources, or 
otherwise as deemed necessary, may notify Components that General 
Counsel, DoD, will assume primary responsibility for coordinating all 
litigation requests and demands for official DoD information or 
testimony of DoD personnel, or both; consulting with the Department of 
Justice, as required; and taking final action on such requests and 
demands.
    (b) Factors to consider. In deciding whether to authorize the 
release of official DoD information or the testimony of DoD personnel 
concerning official information (hereafter referred to as ``the 
disclosure'') pursuant to paragraph (a), DoD officials should consider 
the following types of factors:
    (1) Whether the request or demand is unduly burdensome or otherwise 
inappropriate under the applicable court rules;
    (2) Whether the disclosure, including release in camera, is 
appropriate under the rules of procedure governing the case or matter in 
which the request or demand arose;
    (3) Whether the disclosure would violate a statute, executive order, 
regulation, or directive;
    (4) Whether the disclosure, including release in camera, is 
appropriate or necessary under the relevant substantive law concerning 
privilege;
    (5) Whether the disclosure, except when in camera and necessary to 
assert a claim of privilege, would reveal information properly 
classified pursuant to DoD 5200.1-R, ``Information Security Program 
Regulation,'' August 1982; unclassified technical data withheld from 
public release pursuant to DoD Directive 5230.25, ``Withholding of 
Unclassified Technical Data from Public Disclosure,'' November 6, 1984; 
or other matters exempt from unrestricted disclosure; and,
    (6) Whether disclosure would interfere with ongoing enforcement 
proceedings, compromise constitutional rights, reveal the identity of an 
intelligence source or confidential informant, disclose trade secrets or 
similarly confidential commercial or financial information, or otherwise 
be inappropriate under the circumstances.
    (c) Decisions on litigation requests and demands. (1) Subject to 
paragraph (c)(5) of this section, DoD personnel shall not, in response 
to a litigation request or demand, produce, disclose, release, comment 
upon, or testify concerning any official DoD information without the 
prior written approval of the appropriate DoD official designated in 
Sec. 97.6(a). Oral approval may be granted, but a record of such 
approval will be made and retained in accordance with the applicable 
implementing regulations.
    (2) If official DoD information is sought, through testimony or 
otherwise, by a litigation request or demand, the individual seeking 
such release or testimony must set forth, in writing and with as much 
specificity as possible, the nature and relevance of the official 
information sought. Subject to paragraph (c)(5), DoD personnel may only 
produce, disclose, release, comment upon, or testify concerning those 
matters that were specified in writing and properly approved by the 
appropriate DoD official designated in paragraph (a) of this section. 
See United States ex rel. Touhy v. Ragen, 340 U.S. 462 (1951).
    (3) Whenever a litigation request or demand is made upon DoD 
personnel for official DoD information or for testimony concerning such 
information,

[[Page 532]]

the personnel upon whom the request or demand was made shall immediately 
notify the appropriate DoD official designated in Sec. 97.6(a) for the 
Component to which the individual contacted is or, for former personnel, 
was last assigned. In appropriate cases, the responsible DoD official 
shall thereupon notify the Department of Justice of the request or 
demand. After due consultation and coordination with the Department of 
Justice, as required, the DoD official shall determine whether the 
individual is required to comply with the request or demand and shall 
notify the requestor or the court or other authority of the 
determination reached.
    (4) If, after DoD personnel have received a litigation request or 
demand and have in turn notified the appropriate DoD official in 
accordance with paragraph (c)(3) of this section , a response to the 
request or demand is required before instructions from the responsible 
official are received, the responsible official designated in paragraph 
(a) shall furnish the requestor or the court or other authority with a 
copy of this directive and applicable implementing regulations, inform 
the requestor or the court or other authority that the request or demand 
is being reviewed, and seek a stay of the request or demand pending a 
final determination by the Component concerned.
    (5) If a court of competent jurisdiction or other appropriate 
authority declines to stay the effect of the request or demand in 
response to action taken pursuant to Sec. 97.6(c)(4), or if such court 
or other authority orders that the request or demand must be complied 
with notwithstanding the final decision of the appropriate DoD official, 
the DoD personnel upon whom the request or demand was made shall notify 
the responsible DoD official of such ruling or order. If the DoD 
official determines that no further legal review of or challenge to the 
court's order or ruling will be sought, the affected DoD personnel shall 
comply with the request, demand, or order. If directed by the 
appropriate DoD official, however, the affected DoD personnel shall 
respectfully decline to comply with the demand. See United States ex 
rel. Touhy v. Ragen, 340 U.S. 462 (1951).
    (d) Fees. Consistent with the guidelines in DoD Instruction 7230.7, 
``User Charges,'' January 29, 1985, the appropriate officials designated 
in Sec. 97.6(a) are authorized to charge reasonable fees, as established 
by regulation and to the extent not prohibited by law, to parties 
seeking, by request or demand, official DoD information not otherwise 
available under DoD 5400.7-R, ``DoD Freedom of Information Act 
Program,'' March 24, 1980. Such fees, in amounts calculated to reimburse 
the government for the expense of providing such information, may 
include the costs of time expended by DoD employees to process and 
respond to the request or demand; attorney time for reviewing the requst 
or demand and any information located in response thereto and for 
related legal work in connection with the request or demand; and 
expenses generated by materials and equipment used to search for, 
produce, and copy the responsive information. See Oppenheimer Fund, Inc. 
v. Sanders, 437 U.S. 340 (1978).
    (e) Expert or opinion testimony. DoD personnel shall not provide, 
with or without compensation, opinion or expert testimony concerning 
official DoD information, subjects, or activities, except on behalf of 
the United States or a party represented by the Department of Justice. 
Upon a showing by the requestor of exceptional need or unique 
circumstances and that the anticipated testimony will not be adverse to 
the interests of the Department of Defense or the United States, the 
appropriate DoD official designated in paragraph (a) of this section 
may, in writing, grant special authorization for DoD personnel to appear 
and testify at no expense to the United States. If, despite the final 
determination of the responsible DoD official, a court of competent 
jurisdiction or other appropriate authority, orders the appearance and 
expert or opinion testimony of DoD personnel, the personnel shall notify 
the responsible DoD official of such order. If the DoD official 
determines that no further legal review of or challenge to the court's 
order will be sought, the affected DoD personnel shall comply with the 
order. If directed by the appropriate DoD official, however, the 
affected DoD personnel shall respectfully

[[Page 533]]

decline to comply with the demand. See United States ex rel. Touhy v. 
Ragen, 340 U.S. 462 (1951).



PART 98--DEFENSE HOTLINE PROGRAM--Table of Contents




Sec.
98.1  Purpose.
98.2  Applicability.
98.3  Definitions.
98.4  Policy.
98.5  Responsibilities.
98.6  Procedures.
98.7  Information requirements.
98.8  Effective date and implementation.

Appendix A to Part 98--Inspector General, Department of Defense, Defense 
          Hotline: Record of Call
Appendix B to Part 98--Inspector General, Department of Defense, Defense 
          Hotline: Decision Memorandum
Appendix C to Part 98--Defense Hotline Progress Report as of: 
          (applicable date)
Appendix D to Part 98--Defense Hotline Completion Report as of: 
          (applicable date)

    Authority: 5 U.S.C. 301 and 552.

    Source: 52 FR 44883, Nov. 23, 1987, unless otherwise noted.



Sec. 98.1  Purpose.

    Under Secretary of Defense memorandum dated June 5, 1981 and 32 CFR 
part 373, this part clarifies terminology, updates responsibilities and 
specific requirements to be met in conducting the examination of Defense 
Hotline allegations, and updates managing and operating procedures for 
the Defense Hotline Program.



Sec. 98.2  Applicability.

    This part applies to the Office of the Secretary of Defense (OSD) 
and its field activities; the Military Departments, including the 
National Guard and Reserve components; the Organization of the Joint 
Chiefs of Staff (OJCS); the Unified and Specified Commands; the 
Inspector General of the Department of Defense (IG, DoD); and the 
Defense Agencies (hereafter referred to collectively as ``DoD 
Components'').



Sec. 98.3  Definitions.

    Abuse Intentional or improper use of Government resources. Examples 
include misuse of rank, position, or authority or misuse of resources 
such as tools, vehicles, or copying machines.
    Examination The act of examining, inspecting, inquiry, and 
investigation. For the purposes of the part, the term applies to audit, 
inspection, and investigative activity and encompasses the preliminary 
analysis, inquiry, audit, inspection, and investigation.
    (a) Audit. An independent, objective analysis, review, or evaluation 
of financial records, procedures, and activities to report conditions 
found, and recommend changes or other actions for management and 
operating officials to consider. The term audit includes, in addition to 
the auditor's examinations of financial statements, work performed in 
reviewing compliance with applicable laws and regulations, economy and 
efficiency of operations, and effectiveness in achieving program 
results. All audit work is accomplished in accordance with audit 
standards set forth in ``Standards for Audit in Governmental 
Organizations, Programs, Activities, and Functions,'' issued by the 
Comptroller General of the United States.
    (b) Inquiry. An informal administrative investigation or gathering 
of information through interview or interrogation rather than by 
inspection or study of available evidence. An inquiry does not preclude 
the gathering of available documentary evidence.
    (c) Inspection. A method of assessing the efficiency of management, 
the effectiveness and economy of operations, and compliance with laws 
and directives, with particular emphasis on the detection and prevention 
of fraud and waste.
    (d) Investigation. A systematic, minute, and thorough attempt to 
learn the facts about something complex or hidden. It is often formal 
and official.
    (e) Preliminary Analysis. The activity necessary to determine if the 
allegation or information received warrants further examination, or 
lacks the credibility to merit additional action. The preliminary 
inquiry effort may be limited to interview of the source of the 
complaint and/or a reference provided in the allegation, or review of 
any readily available documentation or records relative to the 
complaint.

[[Page 534]]

    Fraud Any intentional deception designed to deprive the United 
States unlawfully of something of value or to secure from the United 
States for an individual a benefit, privilege, allowance, or 
consideration to which he or she is not entitled. Such practices 
include: making false statements; submitting false claims; using false 
weights or measures; evading or corrupting inspectors or other 
officials; deceit either by suppressing the truth or misrepresenting 
material fact; adulterating or substituting materials; falsifying 
records and books of accounts; arranging for secret profits, kickbacks, 
or commissions; and conspiring to use any of these devices. The term 
also includes conflict of interest cases, criminal irregularities, and 
the unauthorized disclosure of official information relating to 
procurement and disposal matters.
    Independence The state or quality of being free from subjection or 
from the influence, control, or guidance of individuals, things, or 
situations. As applied to examining officials and their respective 
organizations, there is a responsibility for maintaining neutrality and 
exercising objectivity so that opinions, judgments, conclusions, and 
recommendations on examined allegations are impartial and shall be 
viewed as impartial by disinterested third parties.
    Mismanagement A collective term covering acts of waste and abuse. 
Extravagant, careless, or needless expenditure of Government funds or 
the consumption or misuse of Government property or resources, resulting 
from deficient practices, systems, controls, or decisions. Abuse of 
authority or similar actions that do not involve criminal fraud.
    Waste The extravagant, careless, or needless expenditure of 
Government funds, or the consumption of Government property that results 
from deficient practices, systems, controls, or decisions. The term also 
includes improper practices not involving prosecutable fraud.



Sec. 98.4  Policy.

    (a) It is DoD policy to combat fraud and mismanagement in DoD 
programs and operations. To strengthen and focus departmental efforts in 
support of this policy, the Defense Hotline Program, under the direction 
and control of the IG, DoD, shall ensure that allegations of fraud and 
mismanagement are properly evaluated; substantive allegations are 
examined; appropriate administrative, remedial, or prosecutive actions 
are taken; and systems of records for the control of the Defense Hotline 
are established and maintained.
    (b) All DoD Component hotlines shall comply with the guidelines 
prescribed by this part.



Sec. 98.5  Responsibilities.

    (a) The Inspector General, Department of Defense, as the principal 
advisor to the Secretary of Defense on all matters relating to the 
prevention and detection of fraud and mismanagement, shall:
    (1) Oversee the development of the Defense Hotline Program.
    (2) Provide guidance to DoD Components for implementing DoD 
policies.
    (3) Direct, manage, and control the operation of the Defense Hotline 
Program.
    (4) Establish procedures to ensure that full and proper 
consideration is given to all cases of alleged fraud and mismanagement 
in the Department of Defense that are reported through the Defense 
Hotline Program.
    (5) Ensure that audits, inspections, and investigations initiated as 
an integral part of the Defense Hotline Program are conducted under 
applicable laws, including the Uniform Code of Military Justice, court 
decisions, and DoD regulatory documents and policies.
    (6) Conduct periodic quality assurance reviews of the DoD Component 
field investigative files to ensure that investigations of the Hotline 
allegations have been handled properly and that the findings and 
conclusions of the examiners are fully supported by the documentation 
contained in the official files.
    (7) Periodically review and evaluate the operations of the Defense 
Hotline Program.
    (8) Establish a Defense Hotline Advisory Group to:

[[Page 535]]

    (i) Review Defense Hotline allegations that have been referred in 
accordance with paragraph (b)(6) of this section and provide appropriate 
processing and referral instructions to the staff.
    (ii) Review, upon request of the Defense Hotline staff, selected 
audit, inspection, and investigative Defense Hotline completion reports. 
Weaknesses and deficiencies identified by the examinations shall be 
referred to the IG, DoD, for appropriate action and resolution.
    (iii) Review, or cause to be reviewed on an annual basis, those 
complaints that were received by the Defense Hotline staff and 
determined to be matters that did not warrant examination due to 
insufficient information, age of the allegation, nature of the complaint 
(i.e., personal grievance, suggestions, etc.), or because of the 
nonspecific nature of the allegation. The group shall also provide 
guidance to the staff based on the results of the review, as necessary.
    (9) Direct that the applicable IG, DoD, element conduct an audit, 
inspection, or investigation of any allegation where it is determined 
that conduct of the inquiry by the involved agency or organization might 
result in a lack or perceived lack of objectivity or independence on the 
part of the examining officials. Coordination with the heads of the 
concerned DoD Components may be done before conducting the examination, 
if such action is considered appropriate.
    (10) Ensure that any allegation made against a staff member of the 
IG, DoD, the Defense Hotline, or DoD personnel involved in conducting 
the audit, inspection, or investigative activity is examined in an 
impartial, independent, and objective manner.
    (b) The Inspector General shall select, from nominees provided by 
the Assistant Inspectors General, the necessary professional and 
administrative personnel to staff the Defense Hotline. The staff shall:
    (1) Operate the Defense Hotline, recording the pertinent information 
of those allegations received by telephone, mail, or other means of 
communication that appear to merit examination; and maintain statistical 
data on all contacts (letters, telephone calls, personal interviews) 
that are received by the Defense Hotline.
    (2) Establish controls to provide maximum protection for the 
identity of all persons using the Defense Hotline.
    (3) Establish and maintain the required procedural controls, files, 
and records necessary for tracking the allegations from receipt through 
the phases of examination, closeout, and storage.
    (4) Obtain from the complainant the specific information necessary 
to ascertain the substance of each allegation and complete a Defense 
Hotline Record of Call (Appendix A) to record and document those 
allegations determined to have sufficient merit to warrant referral to 
the appropriate DoD Component for action or as information matters.
    (5) Advise the IG, DoD, or Deputy IG, DoD, of serious allegations or 
significant trends disclosed while operating the Defense Hotline.
    (6) Prepare a Defense Hotline Decision Memorandum (Appendix B) for 
each valid letter allegation received, and indicate on the memorandum to 
which DoD Component the allegation is to be referred for either action 
or information purposes. The memorandum shall be a means for tracking 
and maintaining control of the complaint. The staff shall also provide 
any comments and guidance considered pertinent to the conduct of the 
examination.
    (7) Refer items preliminarily determined to be sensitive, 
controversial, or involving flag or general officers or DoD civilian 
officials of GS/GM-15 equivalent or higher grades to the Defense Hotline 
Advisory Group for review and determination by the examining agency. 
Refer all other allegations directly to the DoD Component concerned.
    (8) Coordinate with the General Accounting Office (GAO) Hotline on 
Defense Hotline Program-related matters. They shall also process all 
DoD-related allegations that are received from the GAO Hotline in the 
same manner as Defense Hotline Program allegations, and advise the 
Defense Hotline Advisory Group of any problems encountered in performing 
this function.

[[Page 536]]

    (9) Promptly process and refer to the appropriate DoD Component 
those allegations that warrant inquiry, and expedite the processing and 
referral of those allegations that are time-sensitive. The referral of 
time-sensitive allegations by telephone is permitted when any delay 
might adversely affect the efforts of the examining officials.
    (10) Review and analyze all interim and final reports of examination 
to ensure that all aspects of the Defense Hotline complaint were 
addressed fully, the examinations were conducted properly, and 
appropriate corrective or punitive measures were taken based on the 
examination findings.
    (11) Notify the appropriate DoD Component Hotline coordinator, by 
written memorandum, of discrepancies noted in individual reports or 
apparent deficiencies in the related examination, so that the DoD 
Component may review and, if necessary, reconduct an audit, inspection, 
or investigation of the complaint and submit a revised or corrected 
closing report.
    (12) Notify the Defense Hotline Advisory Group of any significant 
instance when a report of completed examination indicates that the work 
performed did not meet prescribed audit, inspection, or investigative 
standards, or was defective in depth, scope, independence, or some other 
respect, or any instance when examination verifies the complaint of 
wrongdoing and the DoD Component declines to initiate corrective or 
punitive measures.
    (13) Evaluate all allegations of criminal activity that involve the 
OSD, the OJCS, or DoD Components and, when warranted, initiate 
investigation. Conduct investigations of any other allegations, as 
directed by the IG, DoD.
    (14) Investigate or participate in the investigation of Defense 
Hotline allegations of criminal activity that involve more than one DoD 
Component or involve other special circumstances.
    (15) Ensure that professionalism and organizational independence are 
observed at all times and that investigations of allegations are 
conducted impartially and objectively.
    (16) Retain all Defense Hotline Program case files for at least 2 
years after the Defense Hotline staff has closed the inquiry, then 
retire the files in accordance with the appropriate DoD administrative 
Directives and Instructions.
    (17) Develop and implement a follow-up system to ensure that 
recommended administrative or judicial corrective measures, tendered by 
the examining officials, have been implemented by the responsible 
authorities. The system should reflect the results of criminal 
prosecutions, sentences imposed, monetary recoveries, and administrative 
and other actions taken. When it has been determined that such 
corrective action has not been taken by the proper authorities, the 
staff should initiate action to bring the matter to the attention of the 
next higher command organization.
    (18) Inform Defense Hotline agency and organization Hotline 
coordinators of substantive allegations passed directly to the IG, DoD, 
for action, if appropriate.
    (19) Maintain liaison and communication with DoD Component Hotline 
coordinators, other Government Agencies and organizations, and external 
investigative agencies.
    (20) Prepare periodic summary analyses of all Defense Hotline 
operations, including regular reports to the IG, DoD, for each 6-month 
period ending on March 31 and September 30, and to the Deputy Inspector 
General for Program Planning, Review and Management for use in the DoD, 
Office of the Inspector General ``Semiannual Report to the Congress.'' 
Include in the semiannual report an accounting for all allegations 
received by the Defense Hotline office from all sources, and prepare 
them in accordance with the format required by DoD, Office of the 
Inspector General, ``Semiannual Report to the Congress.''
    (21) Maintain the widest dissemination of information concerning the 
Defense Hotline Program by using such mechanisms as news releases, items 
in internal publications (including telephone directories), official 
notices, posters, and other media. Develop educational material for use 
in encouraging DoD employees to report fraud and mismanagement in DoD 
programs and operations.
    (c) Heads of DoD Components shall establish and implement policies 
to ensure that the Defense Hotline Program

[[Page 537]]

is fully effective. To achieve that aim, they shall:
    (1) Establish a single coordinator to manage, monitor, and report to 
the Defense Hotline the actions of audit, inspection, and investigative 
groups on allegations referred by the Defense Hotline to the DoD 
Component for action.
    (2) Establish and implement operational procedures in accordance 
with the guidance in Sec. 98.6.
    (3) Have cognizant audit, inspection, and investigative 
organizations examine Defense Hotline complaints. The audit, inspection, 
and investigative organizations shall:
    (i) Audit, inspect, or investigate Defense Hotline referrals in 
accordance with DoD standards and procedures, and under the implementing 
guidance of the concerned agency or organization. Examination of Defense 
Hotline allegations by the Military Departments shall be conducted using 
the regulatory procedures of the concerned Service element.
    (ii) Maintain appropriate records to ensure accountability of all 
Defense Hotline referrals until final disposition of the case.
    (iii) Establish the administrative and operational controls and 
procedures necessary to provide maximum protection for the identity of 
any Defense Hotline Program source who requests anonymity or 
confidentiality.
    (iv) Ensure that professionalism and organizational independence are 
observed and that audits, inspections, and investigations are conducted 
in an impartial and objective manner.
    (v) Promptly process all allegations that have been referred by the 
Defense Hotline for action and expedite the examination of allegations 
that are time-sensitive.
    (vi) Process and examine all allegations that have been referred as 
``information'' matters to determine if an inquiry is warranted. Report 
any action taken as the result of the referral as outlined in paragraph 
(c)(3)(vii) of this section.
    (vii) Submit a final report of the results of the inquiry through 
the Component Hotline coordinator to the Defense Hotline within 90 days 
from the date the complaint was transmitted by the Hotline for action. 
The report shall conform with the format prescribed in the Defense 
Hotline Completion Report (Appendix D). When an examination cannot be 
completed in 90 days, submit a Defense Hotline Progress Report (Appendix 
C) to the Defense Hotline stating the reason for the delay and the 
expected date of submission of the final report.
    (viii) Submit to the Defense Hotline a Defense Hotline Progress 
Report on each open case on the 6-month anniversary date of the 
beginning of the investigation, using the format in Appendix C.
    (ix) Submit progress reports to the Defense Hotline on the status of 
all audit actions or criminal investigations that have been open 6 
months or more as of March 31 and September 30 to facilitate semiannual 
reporting under Pub. L. 95-452. Submit the cited status information 15 
calendar days before the end of the 6-month period.
    (x) Provide information or documentation on pending or closed 
examinations to the IG, DoD.
    (xi) Ensure that documentation contained in the official examination 
file fully supports the findings and conclusions reflected in the 
Defense Hotline Completion Report. As a minimum, the file shall contain 
a copy of the Hotline Completion Report and a memorandum that reflects 
the actions taken by the examining official to determine the findings, 
complete identity of all witnesses, the date and information related 
during the interview, and specific details and location of all documents 
reviewed. The extent of the file documentation shall be dictated by the 
type of examination conducted.
    (xii) Retain all working papers and files for 2 years from the date 
the matter was formally closed by the Defense Hotline. At the end of the 
2-year period, retire the files in accordance with the pertinent 
administrative procedures of the DoD Component.
    (4) Cooperate with the auditors, inspectors, and investigators by 
granting immediate and unrestricted access--except as is provided for by 
section F. of

[[Page 538]]

DoD Directive 5106.1 \1\--to personnel, documents, and records; and 
provide suitable working facilities and arrangements.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, 5801 Tabor Avenue, ATTN: Code 1052, 
Philadelphia PA 19120.
---------------------------------------------------------------------------

    (5) Ensure, under reporting requirements outlined in paragraphs 
(c)(3) (vii), (viii), and (ix) that reports are promptly submitted to 
the referring audit, inspection, or investigative organization. Also, 
completion reports should reflect administrative, corrective, punitive, 
or other type action taken on cases referred to them for resolution.
    (6) Maintain an active Defense Hotline publicity campaign, using 
local newspapers, official notices, posters, telephone directories, and 
other media. Implement education programs to encourage employees to 
identify and report fraud and mismanagement in DoD programs and 
operations.



Sec. 98.6  Procedures.

    (a) Methods for processing and controlling the receipt, examination, 
and reporting of all allegations referred to DoD Components for audit, 
inspection, and investigation through the Defense Hotline Program are 
addressed in this section and Sec. 98.5 and include procedures to track, 
monitor, and follow up on allegations referred to the Defense Hotline, 
regardless of source. Sources of allegations include The White House, 
Members of Congress, the GAO Hotline, Office of Management and Budget 
(OMB), other executive agency hotlines, DoD staff activities, and 
individuals communicating directly with the IG, DoD.
    (b) Necessary controls shall be established to provide maximum 
protection for the identity of users of the Defense Hotline. Individuals 
shall be ensured that they can report instances of fraud and 
mismanagement without fear of reprisal or unauthorized disclosure of 
identity, as provided in Pub. L. 95-452 and DoD Instruction 7050.3.\2\ 
However, individuals reporting alleged fraud and mismanagement should be 
encouraged to identify themselves to the Defense Hotline so that the 
Defense Hotline staff can recontact the source if additional information 
is needed.
---------------------------------------------------------------------------

    \2\ See footnote 1 to Sec. 98.5(c)(4).
---------------------------------------------------------------------------

    (c) All substantive allegations received by the Defense Hotline 
shall be examined. The examination shall normally be conducted by 
disinterested and qualified auditors, inspectors, or investigators. When 
necessary, DoD Components may use individuals or groups with other 
professional or technical skills to assist in conducting examinations 
under the direct supervision of the responsible audit, inspection, or 
investigative officials.
    (d) The procedures used must ensure that due professional care and 
organizational independence are observed, and that examinations are 
impartial and objective. Allegations must be examined by officials 
independent of the specific unit, office, staff element, operation, 
etc., in which the complaint is alleged to have occurred.
    (e) DoD Components shall encourage personnel to register complaints 
and grievances through appropriate management and grievance channels, 
and submit suggestions for management improvements through the proper 
DoD Incentive Awards Program. There shall be no requirement for any 
individual who makes complaints or provides information to the IG, DoD, 
Defense Hotline representatives to discuss such complaints or 
information with the individual's supervisor or the head of the 
activity. DoD Components shall encourage the reporting of suspected 
fraud and mismanagement to the Defense Hotline either through the toll-
free 800-424-9098 commercial, FTS 202-693-5080, or AUTOVON 223-5080 
telephone system or by mail to the Defense Hotline, The Pentagon, 
Washington, DC 20301-1900.



Sec. 98.7  Information requirements.

    The reporting requirements in Sec. 98.5 are exempt from formal 
approval and licensing under subsection VII.F. of enclosure 3 to DoD 
Directive 5000.19. \3\
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 98.5(c)(4).

---------------------------------------------------------------------------

[[Page 539]]



Sec. 98.8  Effective date and implementation.

    This part is effective March 20, 1987. The Military Departments 
shall forward two copies of implementing documents to the Inspector 
General, Department of Defense, within 60 days. This part is the 
implementing guidance for all other DoD Components.

[[Page 540]]

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PART 99--PROCEDURES FOR STATES AND LOCALITIES TO REQUEST INDEMNIFICATION--Table of Contents




Sec.
99.1  Scope and purpose.
99.3  General definitions.
99.5  Eligibility for indemnification.
99.7  Procedures for requesting an indemnification agreement.
99.9  Terms of indemnification.

Appendix to Part 99--Addresses of Relevant U.S. Government Agencies

    Authority: Access to Criminal History Records for National Security 
Purposes, of The Intelligence Authorization Act for Fiscal Year 1986, 
Pub. L. No. 99-169, secs. 801-803, 99 Stat. 1002, 1008-1011 (1985) 
(codified in part at 5 U.S.C. 9101).

    Source: 51 FR 42555, Nov. 25, 1986, unless otherwise noted.



Sec. 99.1  Scope and purpose.

    (a) The Department of Defense (DoD), Office of Personnel Management 
(OPM), or Central Intelligence Agency (CIA) has the right to criminal 
history information of States and local criminal justice agencies in 
order to determine whether a person may:
    (1) Be eligible for access to classified information;
    (2) Be assigned to sensitive national security duties; or
    (3) Continue to be assigned to national security duties.
    (b) This part sets out the conditions under which the DoD, OPM, or 
CIA may sign an agreement to indemnify and hold harmless a State or 
locality against claims for damages, costs, and other monetary loss 
caused by disclosure or use of criminal history record information by 
one of these agencies.
    (c) The procedures set forth in this part do not apply to situations 
where a Federal agency seeks access to the criminal history records of 
another Federal agency.
    (d) By law these provisions implementing 5 U.S.C. 9101 (b)(3) shall 
expire December 4, 1988, unless the duration of said section is extended 
or limited by Congress.



Sec. 99.3  General definitions.

    For the purposes of Secs. 99.1 through 99.9 of this part:
    Criminal history record information: information collected by 
criminal justice agencies on individuals consisting of identifiable 
descriptions and notations of arrests, indictments, information, or 
other formal criminal charges and any disposition arising therefrom, 
sentencing, correction supervision, and release. The term does not 
include identification information such as fingerprint records to the 
extent that such information does not indicate involvement of the 
individual in the criminal justice system. The term does not include 
those records of a State or locality sealed pursuant to law from access 
by State and local criminal justice agencies of that State or locality.
    Criminal justice agency: Federal, State, and local agencies 
including (a) courts, or (b) a government agency or any subunit thereof 
which performs the administration of criminal justice pursuant to a 
statute or executive order, and which allocates a substantial part of 
its annual budget to the administration of criminal justice.
    Department of Defense: the Defense Investigative Service, National 
Security Agency, Naval Investigative Service, Air Force Office of 
Special Investigations, and Army Intelligence and Security Command.
    Federal agency: the Department of Defense, the Office of Personnel 
Management, or the Central Intelligence Agency, or any other Federal 
agency subsequently authorized by Congress to obtain access to criminal 
history records information.
    Locality: any local government authority or agency or component 
thereof within a State having jurisdiction over matters at a county, 
municipal or other local government level.
    State: any of the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Northern Mariana Islands, Guam, the 
Virgin Islands, American Samoa, the Trust Territory of Pacific Islands, 
and any other territory or possession of the United States.



Sec. 99.5  Eligibility for indemnification.

    As provided for under 5 U.S.C. 9101(b)(3), a State or locality may 
request an indemnification agreement.

[[Page 546]]

    (a) To be eligible for an indemnification agreement a State or 
locality must have had a law in effect on December 4, 1985 that 
prohibited or had the effect of prohibiting the disclosure of criminal 
history record information to the DoD, OPM, or CIA.
    (b) A State or locality is also eligible for an indemnification 
agreement if it meets the conditions of paragraph (a) of this section, 
but nevertheless provided criminal history record information to the 
DoD, OPM, or CIA on or before December 4, 1985.



Sec. 99.7  Procedures for requesting an indemnification agreement.

    When requesting an indemnification agreement, the State or locality 
must notify each Federal agency as appropriate, at the address listed in 
the appendix to this part, of its eligibility of an indemnification 
agreement. It must also:
    (a) Certify that on December 4, 1985, the State or locality had in 
effect a law which prohibited or had the effect of prohibiting the 
disclosure of criminal history record information to the DoD, OPM, or 
CIA; and
    (b) Append to the request for an indemnification agreement a copy of 
such law.



Sec. 99.9  Terms of indemnification.

    The terms of the Uniform Federal Agency Indemnification Agreement 
(UFAIA), must conform to the following provisions:
    (a) Eligibility: The State or locality must certify that its law 
prohibits or has the effect of prohibiting the disclosure of criminal 
history record information to the DoD, OPM, or CIA for the purposes 
described in section 910.101(a) and that such law was in effect on 
December 4, 1985.
    (b) Liability: (1) The Federal agency agrees to indemnify and hold 
harmless the State or locality from any claim for damages, costs and 
other monetary loss arising from the disclosure or negligent use by the 
DoD, OPM, or CIA of criminal history record information obtained from 
that State or locality pursuant to 5 U.S.C. 9101(b). The indemnification 
will include the officers, employees, and agents of the State or 
locality.
    (2) The indemnification agreement will not extend to any act or 
omission prior to the transmittal of the criminal history record 
information to the Federal agency.
    (3) The indemnification agreement will not extend to any negligent 
acts on the part of the State or locality in compiling, transcribing or 
failing to delete or purge any of the information transmitted.
    (c) Consent and access requirements:
    (1) The Federal agency when requesting criminal history record 
information from the State or locality for the release of such 
information will attest that it has obtained the written consent of the 
individual under investigation after advising him or her of the purposes 
for which that information is intended to be used.
    (2) The Federal agency will attest that it has advised that 
individual of the right to access that information.
    (d) Purpose requirements: The Federal agency will use the criminal 
history record information only for the purposes stated in 
Sec. 910.101(a).
    (e) Notice, litigation and settlement procedures: (1) The State or 
locality must give notice of any claim against it on or before the 10th 
day after the day on which claim against it is received, or it has 
notice of such a claim.
    (2) The notice must be given to the Attorney General and to the U.S. 
Attorney of the district embracing the place wherein the claim is made.
    (3) The Attorney General shall make all determinations regarding the 
settlement or defense of such claims.

   Appendix to Part 99--Addresses of Relevant U.S. Government Agencies

Department of Defense, Office of the General Counsel, Room 3E988, 
Washington, DC 20301-1600
Office of Personnel Management, Office of Federal Investigations, P.O. 
Box 886, Washington, DC 20044
Central Intelligence Agency, Attention: Office of General Counsel, 
Washington, DC 20505



PART 100--UNSATISFACTORY PERFORMANCE OF READY RESERVE OBLIGATION--Table of Contents




Sec.
100.1  Reissuance and purpose.

[[Page 547]]

100.2  Applicability.
100.3  Policy.
100.4  Responsibility.
100.5  Procedures.
100.6  Definitions.
Enclosure--Suggested Format, Affidavit of Service by Mail

    Authority: 10 U.S.C. 510, 511, 593, 597, or 651, and 32 U.S.C. 302.

    Source: 44 FR 51568, Sept. 4, 1979, unless otherwise noted.



Sec. 100.1  Reissuance and purpose.

    This part is reissued to update DoD policy on actions to be taken in 
regard to members of the Ready Reserve whose performance of duty or 
participation in Reserve training is unsatisfactory; and provides 
greater flexibility to the Military Departments when dealing with 
unsatisfactory performance.



Sec. 100.2  Applicability.

    The provisions of this part apply to the Office of the Secretary of 
Defense and the Military Departments.



Sec. 100.3  Policy.

    Persons who are enlisted or appointed in, or transferred to a 
Reserve component of the Armed Forces of the United States, under the 
provisions of 10 U.S.C. 510, 511, 593, 597, or 651 and 32 U.S.C. 302 are 
expected to participate and perform satisfactorily as members of the 
Ready Reserve to fulfill their obligation or service agreement. This 
policy is also in accordance with the standards prescribed by 32 CFR 
parts 102 and 101 and the Military Departments concerned.



Sec. 100.4  Responsibility.

    The Secretaries of the Military Departments shall ensure that:
    (a) Ready Reserve applicants understand their obligations for 
satisfactory participation in the Ready Reserve before their enlistment 
or appointment.
    (b) Members of the Ready Reserve continue to understand their 
obligations for satisfactory participation in the Ready Reserve after 
their enlistment or appointment in accordance with 32 CFR part 44.



Sec. 100.5  Procedures.

    (a) Unsatisfactory participation in the Ready Reserve. (1) Members 
of the Selected Reserve who have not fulfilled their statutory military 
service obligation under 10 U.S.C. 651 and whose participation has not 
been satisfactory may be:
    (i) Ordered to active duty, if they have not served on active duty 
or active duty for training for a total period of 24 months, for such 
period of time as may be deemed necessary by the Secretary of the 
Military Department concerned under the provisions of 10 U.S.C. 673a 
(such individuals may be required to serve on active duty until their 
total service on active duty or active duty for training equals 24 
months); or
    (ii) Ordered to active duty for training, regardless of the length 
of prior active duty or active duty for training, for a period of not 
more than 45 days under provisions of 10 U.S.C. 270; or
    (iii) Transferred to the Individual Ready Reserve (IRR) for the 
balance of their statutory military service obligation with a tentative 
characterization of service, normally under other than honorable 
conditions, when the Military Department concerned has determined that 
the individuals still possesses the potential for useful service under 
conditions of full mobilization; or
    (iv) Discharged for unsatisfactory participation under the 
provisions of 32 CFR part 41, when the Military Department concerned has 
determined that the individual has no potential for useful service under 
conditions of full mobilization.
    (2) Members of the Selected Reserve who have fulfilled their 
statutory military service obligation under 10 U.S.C. 651 or who did not 
incur such obligation,2 and whose participation has not been 
satisfactory may be:
---------------------------------------------------------------------------

    2  This includes women whose current enlistment or 
appointment was effected before February 1, 1978.
---------------------------------------------------------------------------

    (i) Transferred to the IRR for the balance of their current 
enlistment contract or service agreement with a tentative 
characterization of service, normally under other than honorable 
conditions, when the Military Department

[[Page 548]]

concerned has determined that the individual still has a potential for 
useful service under conditions of full mobilization; or
    (ii) Discharged for unsatisfactory performance under 32 CFR part 41 
when the Military Department concerned has determined that the 
individual has no further potential for useful service under conditions 
of full mobilization.
    (3) When a member of the Selected Reserve is identified as an 
unsatisfactory participant and considered a possible candidate for 
involuntary transfer to the IRR or for discharge, a board of officers 
shall be convened, as required by 10 U.S.C. 1163 to consider the 
circumstances and recommend appropriate action.
    (4) When an individual is transferred to the IRR as a result of an 
approved board recommendation, no further board action shall be required 
before discharge if the individual fails to take affirmative action in 
an effort to upgrade the tentative characterization of service.
    (5) Members of the IRR who have not fulfilled their statutory 
military service obligation under 10 U.S.C. 651 were enlisted or 
appointed under any program that provided that the obligation could be 
fulfilled by service in the IRR only, and whose participation in such a 
program has not been satisfactory may be:
    (i) Retained in the IRR for the duration of their statutory military 
service obligation with a tentative characterization of service, 
normally under other than honorable conditions, when the Military 
Department concerned has determined that the individual still possesses 
the potential for useful service under conditions of full mobilization; 
or
    (ii) Discharged for unsatisfactory performance under 32 CFR part 41, 
when the Military Department concerned has determined that the 
individual has no potential for useful service under conditions of full 
mobilization.
    (6) When a member of the IRR, whose enlistment or appointment 
provided that the service concerned could be performed entirely in the 
IRR (as opposed to the Selected Reserve), is identified as an 
unsatisfactory participant, a board of officers shall be convened as 
required by 10 U.S.C. 1163 to consider the circumstances and recommend 
appropriate action. When an individual is retained as a result of an 
approved board action, no further board action shall be required before 
discharge if the individual fails to take affirmative action in an 
effort to upgrade the tentative characterization of service.
    (7) Individuals assigned to the Selected Reserve who are ordered to 
active duty under 10 U.S.C. 673a or to active duty for training under 
the provisions of 10 U.S.C. 270 may be returned to their previous unit 
of assignment or transferred to the IRR upon the completion of the 
active duty or active duty for training. When necessary, the 
individual's term of enlistment or service agreement may be extended to 
permit completion of the designated period of active duty or active duty 
for training in accordance with 10 U.S.C. 270(b) and 673(b).
    (8) Individuals who are transferred or assigned to the IRR who have 
a tentative characterization of service of less than honorable because 
of unsatisfactory participation in the Ready Reserve shall be discharged 
at the end of their statutory military service obligation or their 
period of enlistment or service agreement, whichever is later with such 
characterization unless the individuals have taken affirmative action to 
upgrade the tentative characterization of service. Affirmative actions 
may include, but are not limited to, rejoining a unit of the Selected 
Reserve and participating satisfactorily for a period of 12 months, or 
volunteering for and completing a tour of active duty for training of 
not less than 45 days. When necessary, the individual's term of 
enlistment or service agreement may be extended to complete the 
affirmative action and qualify for a more favorable characterization of 
service.
    (9) When members of the Selected Reserve are ordered to active duty, 
active duty for training, or transferred to the IRR because of 
unsatisfactory participation, copies of their orders should be furnished 
to the individuals through personal contact by a member of the command 
and a written acknowledgment of receipt obtained. When such

[[Page 549]]

efforts are unsuccessful, the orders shall be mailed to the individual.
    (i) Orders mailed to such members shall be sent by Certified Mail 
(Return Receipt Requested), and a Receipt for Certified Mail (PS Form 
3800) obtained. In addition, the individual who mails the orders shall 
prepare a Sworn Affidavit of Service by Mail (format at enclosure) that 
shall be inserted, together with the PS Form 3800, in the member's 
personnel file.
    (ii) Notification shall be made through the mailing of orders to the 
member's most recent mailing address.
    (iii) Provided the orders were properly mailed to the most recent 
address furnished by the member, absence of proof of delivery does not 
change the fact that the member was properly ordered to report for 
active duty, active duty for training, or transferred to the IRR, as 
appropriate.
    (iv) Individuals ordered to active duty who fail to report shall 
have their names entered into the National Crime Information Center of 
the Federal Bureau of Investigation within 30 days following their 
reporting date and appropriate screening by the Deserter Information 
Point concerned.
    (10) Orders affecting members of the IRR that involve active duty 
for training required by the terms of their enlistment or service 
agreement may be handled by mail in the manner prescribed in paragraph 
(a)(9)(i) of this section.
    (11) Each member of the IRR must keep the organization of assignment 
informed of:
    (i) His/her accurate and current mailing address;
    (ii) Any change of address, marital status, number of dependents, 
and civilian employment; and
    (iii) Any change in physical condition that would prevent the member 
from meeting the physical or mental standards prescribed by 10 U.S.C. 
652 and part 44 of this title.
    (12) Individuals involuntarily ordered to active duty or active duty 
for training under provisions of this part may be delayed as prescribed 
by the Secretary of the Military Department concerned.
    (13) Individuals whose involuntary order to active duty would result 
in extreme community or personal hardship may, upon their request, be 
transferred to the Standby Reserve, the Retired Reserve, or discharged, 
as appropriate, in accordance with 10 U.S.C. 673a(c) and part 44 of this 
title.
    (b) Exceptions. As exceptions to the criteria in paragraph (a) of 
this section, members of the Ready Reserve who do not or are unable to 
participate for any of the following reasons shall be processed as 
indicated:
    (1) Members of the Selected Reserve who are unable to participate in 
a unit of the Selected Reserve by reason of an action taken by the 
Military Department concerned, such as unit inactivation or relocation, 
to the effect that they now reside beyond a reasonable commuting 
distance (as defined in Sec. 100.6(e)) of a Reserve unit, shall be 
assigned to the IRR until they are able to join or be assigned to 
another unit, or complete their statutory military service obligation.
    (2) Members of the Selected Reserve who change their residence:
    (i) May lose their unit position. However, they will be transferred 
to another paid-drill unit with the same Reserve component if possible 
or be given 90 days after departing from their original unit to locate 
and join another unit. At the new unit, they will fill an existing 
vacancy or be assigned as a temporary overstrength within the 
congressionally authorized standard-years (defined in Sec. 100.6(f)) or 
funds under paragraph (b)(2)(iii) (A) and (B) of this section.
    (ii) May locate position vacancies that require different 
specialties than the ones they now possess. Therefore, the Secretary of 
the Military Department concerned may provide for the retaining of these 
individuals (with their consent) by ordering them to active duty for 
training to acquire the necessary specialties.
    (iii) Must be accepted in a Reserve unit by their parent Military 
Department regardless of vacancies, subject to the following conditions:
    (A) The losing unit certifies that the reservist's performance of 
service has been satisfactory.
    (B) The reservist's specialty is usable in the unit, the member can 
be retrained by on-the-job training, or the

[[Page 550]]

member is willing to be retrained as outlined in paragraph (b)(2)(ii) of 
this section.
    (iv) Are authorized to transfer to another Reserve component under 
the provisions of DoD Directive 1205.51, ``Transfer of Persons Between 
Reserve Components of the Armed Forces,'' June 25, 1959, when the 
conditions outlined in paragraph (b)(2)(iii) apply.
    (3) If members of the Selected Reserve who change their residents 
fail to join another unit within a period of 90 days, and at least 1 
unit of their component is within a reasonable commuting distance, as 
such distance is defined in Sec. 100.6(e) they shall be processed in 
accordance with Sec. 100.5(a) unless they are considered eligible to be 
handled as ``exceptions'' under policies outlined in paragraph (b) (5) 
through (8) of this section.
    (4) If members of the Selected Reserve who change their residences 
locate in an area where they reside beyond a reasonable commuting 
distance, as such distance is defined in Sec. 100.6(e) of a paid-drill 
unit of the same Reserve component, they shall be assigned to the IRR of 
their service until they are able to transfer to a paid-drill unit of 
another Reserve component; or complete their statutory military service 
obligation.
    (5) Members of the Ready Reserve who are preparing for, or are 
engaged in, critical civilian occupations will be screened in accordance 
with 32 CFR part 44.
    (6) Individuals who are preparing for the ministry in a recognized 
theological or divinity school may participate voluntarily in the Ready 
Reserve. However, under 10 U.S.C. 685, such individuals may not be 
required to do so. Members who do not wish to participate shall be 
transferred to the Standby Reserve. If such training is terminated 
before graduation, the member may be transferred back to the Ready 
Reserve. A member eligible for assignment to the Standby Reserve under 
the provisions of 10 U.S.C. 268(b), 270, 510, 511, 593, 597, 651, 652, 
672, 673, 673a, 673b, 685, and 1163 who voluntarily remains assigned to 
the Selected Reserve and participates in the training required, waives 
any right to request delay to exemption from any later mobilization on 
the basis of preparation for the ministry.
    (7) Individuals who are enrolled in a course of graduate study in 
one of the health professions shall be screened in accordance with DoD 
Directive 1200.141, ``Reservists Who Are Engaged in Graduate Study or 
Training in Certain Health Progressions,'' July 30, 1969.
    (8) Individuals who incur a bona fide, temporary nonmilitary 
obligation requiring overseas residency outside the United States, or 
religious missionary obligation shall be processed in accordance with 32 
CFR art 103.
    (9) Nothing in this part shall be construed as limiting the right of 
the individual to voluntarily request transfer to the Standby Reserve or 
to the Retired Reserve, or discharge from the Reserve components when 
such action is authorized by regulations of the Military Department 
concerned.
    (10) Nothing in this part shall be construed as precluding action 
against a member of the Ready Reserve, either by court-martial or review 
by a board of officers convened by an authority designated by the 
Secretary of the Military Department concerned, when such action might 
otherwise be warranted under 10 U.S.C. 268(b), 270, 510, 511, 593, 597, 
651, 652, 672, 673, 673a, 673b, 685, and 1163 and the regulations of the 
Military Department concerned.



Sec. 100.6  Definitions.

    (a) Ready Reserve. Consists of the Selected Reserve and the 
Individual Ready Reserve. Members of both are subject to active duty as 
outlined in 10 U.S.C. 672 and 673.
    (b) Selected Reserve. Members of the Ready Reserve in training/pay 
categories A, B, C, F, M and P. These reservists are either members of 
units who participate regularly in drills and annual active duty for 
training, in annual field training in the case of the National Guard, or 
are on initial active duty for training; or they are individuals who 
participate in regular drills and annual active duty on the same basis 
as members of Reserve component units. Excluded from the Selected 
Reserve are Reserve component members who are:

[[Page 551]]

    (1) Participating in annual active duty for training and not paid 
for attendance at regular drills (pay categories D and E), or awaiting, 
in a nonpay status, their initial active duty for training (pay category 
L).
    (2) Enrolled in officer training program (pay category J) members of 
the Individual Ready Reserve pool (pay category H), and reservists on 
extended active duty. (See 10 U.S.C. 268(b) 32 CFR part 102.)
    (3) Members of the Inactive Army National Guard.
    (c) Individual Ready Reserve (IRR). Members of the Ready Reserve not 
assigned to the Selected Reserve and not on active duty.
    (d) Unsatisfactory participation. A member of the Ready Reserve who 
fails to fulfill his/her obligation or agreement as a member of a unit 
of the Ready Reserve described in 10 U.S.C. 268(b), 270, 510, 511, 593, 
597, 651, 652, 672, 673, 673a, 673b, 685, and 1163. Or a member who 
fails to meet the standards as prescribed by the Military Departments 
concerned for attendance at training drills, attendance at active duty 
for training, training advancement, or performance of duty.
    (e) Reasonable commuting distance. The maximum distance a member of 
a Reserve component may travel involuntarily between residence and drill 
training site, in accordance with Sec. 100.5(b)(1). This distance may be 
within:
    (1) A 100-mile radius of the drill site that does not exceed a 
distance that can be traveled by automobile under average conditions of 
traffic, weather, and roads within 3 hours. This applies only to those 
units that normally conduct four drills on 2 consecutive days during the 
training year, if Government meals and quarters are provided at the base 
where the unit drills. (The provisions of this paragraph shall apply 
only to those individuals enlisting, reenlisting, or extending their 
enlistments after November 1, 1972.)
    (2) A 50-mile radius of the drill site that does not exceed a 
distance that can be traveled by automobile under average conditions of 
traffic, weather, and roads within a period of 1\1/2\ hours.
    (f) Standard-year. Personnel authorizations that describe the amount 
of work expected of one individual during a calendar or fiscal year.
    (g) Tentative characterization of service. An interim description of 
the quality of performance during a period which is less than the time 
required to earn an administrative discharge. The quality of performance 
shall be described as honorable, under honorable conditions, or under 
other than honorable conditions. If the quality is described as under 
honorable conditions a General Discharge certificate shall be provided 
upon discharge. If the quality is described as under other than 
honorable conditions a Discharge Under Other Than Honorable Conditions 
certificate shall be provided upon discharge.
[44 FR 51568, Sept. 4, 1979, as amended at 45 FR 48618, July 21, 1980]

        Enclosure--Suggested Format, Affidavit of Service by Mail

State of __________
County of __________
__________ (Name of individuals who mailed orders), being duly sworn, 
deposes and says:

    I am the __________ (Job Title, e.g., Personnel Officer) of 
__________ (Unit) on the ______ day of __________ 19__, I mailed the 
original orders, a true copy of which is attached hereto, by Certified 
Mail (Return Receipt Requested) to __________ (Name and address of 
member of orders) that being the last known address given to __________ 
(Unit) as the one at which official mail would be received by or 
forwarded to the Reserve component member by depositing same in an 
official depository of the U.S. Postal Service at __________ (Location 
of Postal Facility) in a securely wrapped and sealed U.S. Government 
official postal envelope with a Return Receipt Card (PS Form 3811) 
attached and the envelope addressed to the member at the address 
provided. A Receipt for Certified Mail (PS Form 3800) attesting to such 
action is attached.

__________ (Signature and Rank of Affiant)
Sworn and subscribed before me this ______ day of __________ 19__.
__________ (Signature and Rank of Officer Administering Oath)



PART 101--PARTICIPATION IN RESERVE TRAINING PROGRAMS--Table of Contents




Sec.
101.1  Reissuance and purpose.
101.2  Applicability.
101.3  Definitions.
101.4  Responsibilities.

[[Page 552]]

101.5  Requirements.
101.6  Criteria for satisfactory performance.
101.7  Compliance measures.
101.8  Reserve training in sovereign foreign nations.

    Authority: 10 U.S.C. 270 (a), (b), (c), 511 (b), (d), and 673a, and 
32 U.S.C. 502(a).

    Source: 44 FR 53160, Sept. 13, 1979, unless otherwise noted.



Sec. 101.1  Reissuance and purpose.

    This part establishes: (a) The criteria and training requirements 
for satisfactory participation by members of the Reserve components of 
the U.S. Armed Forces who are subject to the provisions of 10 U.S.C. and 
32 U.S.C., and (b) uniform DoD policy for training members of such 
Reserve components who may be temporarily residing in sovereign foreign 
nations.



Sec. 101.2  Applicability.

    The provisions of this part apply to the Office of the Secretary of 
Defense and the Military Departments.



Sec. 101.3  Definitions.

    For the purposes of administering 10 U.S.C. 270(a), the terms 
enlisted and appointed refer to initial entry into an armed force 
through enlistment or appointment.



Sec. 101.4  Responsibilities.

    The Secretaries of the Military Departments will issue regulations 
prescribing criteria and training requirements for satisfactory 
participation in Reserve training programs by members of Reserve 
components of the U.S. Armed Forces and exceptions thereto, consistent 
with Sec. 101.5.



Sec. 101.5  Requirements.

    (a) Reserve participation--(1) Training requirements under 10 U.S.C. 
270(a). (i) Each individual inducted, enlisted, or appointed in the U.S. 
Armed Forces after August 9, 1955, who becomes a member of the Ready 
Reserve (by means other than through membership in the Army National 
Guard of the United States (see Sec. 101.5(a)(2)) during the required 
statutory period in the Ready Reserve, participate or serve as follows, 
except as provided in 32 CFR part 102.
    (A) In at least 48 scheduled drills or training periods and not less 
than 14 days (exclusive of travel time) of active duty training during 
each year; or
    (B) On active duty for training for no more than 30 days each year, 
unless otherwise specifically prescribed by the Secretary of Defense.
    (ii) The provisions of Sec. 101.5(a)(1) do not apply to graduates of 
the Federal and State Maritime Academies who are commissioned in the 
Naval Reserve.
    (2) Training requirements under 32 U.S.C. 502(a) apply to the 
Secretaries of the Army and Air Force only. Members of the Army and Air 
National Guard shall:
    (i) Assemble for drill and instruction at least 48 times a year, and
    (ii) Participate in training encampments, maneuvers, or other 
exercises at least 15 days a year, unless excused by the Secretaries of 
the Army or Air Force.
    (3) Active duty. Enlisted members who have served 2 years on active 
duty or who, under the policy and regulations of the Military Services 
concerned, were credited with having served 2 years of active duty will 
not be required to perform duty as described in paragraph (a)(1)(i) (A) 
and (B) of this section unless such members:
    (i) Enlisted under the provisions of 10 U.S.C. 511(b) or (d) thereby 
incurring a statutory obligation to participate in the Ready Reserve in 
an active training status for a specified period of time after the 2 
years of active duty described above.
    (ii) Performed part or all of their 2 years of active duty as a 
result of being ordered to active duty under 10 U.S.C. 673a for not 
participating satisfactorily in a unit of the Ready Reserve. However, 
the Secretary concerned, or designee, may waive this requirement in 
those cases where involuntary retention would not be in the best 
interest of the Service.
    (iii) Filled a vacancy in the Selected Reserve that otherwise cannot 
be filled, following a diligent recruiting effort by the Secretary 
concerned.
    (iv) Executed a separate written agreement incurring an obligation 
to participate in the Selected Reserve.
    (4) Active duty served in a combat zone. (i) Except as specified in 
paragraph

[[Page 553]]

(a)(4)(ii), enlisted members who (A) have served on active duty in a 
combat zone for hostile fire pay (or other areas as prescribed by the 
Secretary of Defense) for a total of 30 days or more, or (B) are wounded 
while on active duty in hostile areas, will not be required to perform 
duty involuntarily (as described paragraph (a) (1)(i)(A) and (2) of this 
section. However, these members may be required to participate or serve 
on active duty for no more than 30 days each year, unless otherwise 
specifically prescribed by the Secretary of Defense.
    (ii) Members, who enlisted under the provisions of 10 U.S.C. 511(b) 
or (d) and serve on active duty described in paragraph (a)(4)(i) are 
obligated to participate in the Ready Reserve in an active duty training 
status during the statutory period of service in the Ready Reserve.
    (5) Exclusion. Notwithstanding the exclusion of the member enlisted 
under the provisions of 10 U.S.C. 511(b) or (d), from the policies set 
forth in paragraph (a) (3) and (4) of this section, the Secretaries of 
the Military Departments may, with the approval of the Secretary of 
Defense, establish criteria which may excuse certain enlistees from 
performing the duty described in Sec. 101.5(a), depending upon the 
particular needs of the Military Department concerned.



Sec. 101.6  Criteria for satisfactory performance.

    Within the general policy outlined in Sec. 101.5(a), the minimum 
amount of annual training prescribed by the Secretaries of the Military 
Departments concerned will be no less than the training required to 
maintain the proficiency of the unit and the skill of the individual. In 
establishing annual training requirements under this policy, the 
Secretaries:
    (a) May grant exceptions under circumstances outlined below for 
individuals who are subject to the training requirements set forth in 
Sec. 101.5(a)(1) and (2):
    (1) To the degree that it is consistent with military requirements, 
the personal circumstances of an individual may be considered in 
assigning him/her to a training category prescribed in 32 CFR part 102, 
except as otherwise provided by 32 CFR part 100.
    (2) Members who have performed a minimum initial tour of extended 
active duty, as prescribed by the Military Departments concerned may be 
placed in Category I (no training) as defined in 32 CFR part 102, when 
the Secretary of the Military Department concerned determines that no 
training for mobilization requirement exists because of
    (i) Changes in military skills required;
    (ii) The degree of military skill held; or
    (iii) Compatibility of the member's civilian occupation with his/her 
military skill.
    (b) May grant exceptions regarding absences after considering the 
member's manner of performance of prescribed training duty under the 
provisions of Sec. 101.5(a)(1) and provided that the absences not so 
excepted do not exceed 10% of scheduled drills or training periods.
    (c) Shall require members to: (1) Meet the standards of satisfactory 
performance of training duty set forth in Sec. 101.6(b); or (2) 
participate satisfactorily in an officer training program. The placement 
of such members in the Standby Reserve as a result of the screening 
process prescribed in 32 CFR part 44, will continue to constitute 
satisfactory performance of service.



Sec. 101.7  Compliance measures.

    Under the provisions of 32 CFR part 100, members of the Ready 
Reserve who fail to meet the criteria for satisfactory performance, as 
set forth in Sec. 101.6, may be:
    (a) Ordered to active duty; or
    (b) Ordered to active duty for training; or
    (c) Transferred to, or retained in the Individual Ready Reserve with 
a tentative characterization of service, normally under other than 
honorable conditions; or
    (d) Discharged for unsatisfactory participation under the provisions 
of 32 CFR part 41, when the Military Department concerned has determined 
that the individual has no potential for useful service under conditions 
of full mobilization.

[[Page 554]]



Sec. 101.8  Reserve training in sovereign foreign nations.

    (a) The Secretaries of the Military Departments may authorize the 
conduct of scheduled drills or training periods, correspondence courses, 
and such other active or inactive duty training as they consider 
appropriate for members of the Reserve components who may be temporarily 
residing in sovereign foreign nations which permit the United States to 
maintain troops of the Active Forces (other than Military Advisory 
Assistance Group or attached personnel) within their boundaries.
    (b) Prior to authorizing such training, the Secretaries of the 
Military Departments will instruct the attaches representing their 
respective Departments to inform the U.S. Ambassador and the appropriate 
officials of the foreign government of the intent to conduct such 
training. If the foreign government objects, the Secretaries of the 
Military Departments will furnish all the facts and their 
recommendations to the Secretary of Defense.
    (c) This policy does not prohibit the conduct of inactive duty 
training, such as correspondence courses, in those sovereign foreign 
countries in which the United States does not maintain Active Forces and 
where an agreement exists between the United States and the sovereign 
foreign nation concerned for the conduct of such training.
    (d) This policy does not prohibit for a limited duration the 
augmentation of Defense Attache Offices by attache reservists 
(mobilization augmentees or mobilization designees) during periods of 
local emergencies or for short-term (less than 30 days) training 
periods, provided the provisions of paragraph (b) of this section are 
respected. Attache reservists who are available, possess the expertise 
required, and reside temporarily in foreign countries, shall be utilized 
to the maximum extent to augment Defense Attache Offices before the 
continental United States-based attache reservists are utilized.



PART 102--UNIFORM RESERVE, TRAINING AND RETIREMENT CATEGORIES--Table of Contents




Sec.
102.1  Purpose.
102.2  Applicability.
102.3  Definitions.
102.4  Policy.
102.5  Responsibilities.
102.6  Procedures.

Appendix A to Part 102--Uniform Reserve, Training and Retirement 
          Categories
Appendix B to Part 102--Members Participating in Approved Programs 
          Outside the Department of Defense
Appendix C to Part 102--Definitions Explained
Appendix D to Part 102--Authorized Reserve, Training and Retirement 
          Categories

    Authority: 10 U.S.C. 136.

    Source: 57 FR 3541, Jan. 30, 1992, unless otherwise noted.



Sec. 102.1  Purpose.

    This revises 32 CFR part 102 to:
    (a) Update DoD policy and assign responsibilities for implementing 
recent changes in law.
    (b) Establish DoD policy guidance for maintaining and reporting 
personnel data in accordance with (IAW) DoD Directive 1205.17 \1\ and 
DoD Instruction 7730.54.\2\
---------------------------------------------------------------------------

    \1\ Copies may be obtained at cost from the National Technical 
information Service, 5285 Port Royal Road, Springfield, VA 22161.
    \2\ See footnote 1 to Sec. 102.1(a).
---------------------------------------------------------------------------

    (c) Designate uniform Reserve component (RC) categories (RCCs) and 
training and retired categories (TRCs) for the Ready Reserve, Standby 
Reserve, and Retired Reserve of the Armed Forces under 10 U.S.C. 268, 
270, 271, 273, 274, 1376, 2001, and 6017.
    (d) Establish minimal training criteria for each category of the 
RCs.
    (e) Provide DoD uniform planning policies and procedures on 
training.
    (f) Establish DoD Policy guidance for participation in Selective 
Service System (SSS) activities, civil defense activities, and 
continental United States (CONUS) Defense programs by members of the 
Ready and Standby Reserve.

[[Page 555]]



Sec. 102.2  Applicability.

    This part applies to the Office of the Secretary of Defense (OSD); 
the Military Departments and their Reserve components (RCs); the 
Chairman, Joint Chiefs of Staff and Joint Staff; the U.S. Coast Guard 
(USCG) and its Reserve Component (RC) with the concurrence of the 
Department of Transportation (DoT); and the Defense Agencies (hereafter 
referred to collectively as ``DoD Components'').



Sec. 102.3  Definitions.

    Uniform Reserve, training and retirement categories used in this 
part are defined in appendix A to this part. Other terms used in this 
part are defined in appendices B and C to this part.



Sec. 102.4  Policy.

    It is DoD policy to:
    (a) Establish Authorized RCCs and TRCs. Appendix D to this part 
establishes authorized RCCs and TRCs in the RCs for training and 
accountability purposes. Each unit and member of the RCs not counted in 
active duty (AD) end strengths, IAW 10 U.S.C. 115(b)(1)(B), shall be 
placed in one of the RCCs and TRCs so identified.
    (b) Establish Criteria. To ensure that trained and qualified RC 
units and individuals are available for AD in time of war or national 
emergency, and that funds appropriated annually for RC training are 
adequate for meeting mobilization requirements, the Secretary concerned 
shall establish necessary criteria and procedures to do the following:
    (1) Place all RC members in an RCC and TRC IAW the uniform Reserve, 
training and retirement categories described in appendices A and D of 
this part. Individuals shall be assigned to RCCs and TRCs based on their 
mobilization obligations and training requirements.
    (2) Ensure that all RC members receive training IAW mobilization 
assignments and required readiness levels. All members of the Ready 
Reserve, except members of the Army National Guard (ARNG) of the United 
States and the Air National Guard (ANG) of the United States, may be 
required to serve on AD training (ADT) up to 30 days a year (section 
270(a)(2) of title 10, U.S.C.) There is no statutory maximum annual 
limit on required training for members of the National Guard. Training 
for the Individual Ready Reserve (IRR), Standby Reserve, and Retired 
Reserve may be accomplished voluntarily IAW DoD procedures in 
Sec. 102.6.
    (3) Approve any additional inactive duty training (IDT), as 
necessary and consistent with law. Authorizing and utilizing additional 
training is subject to the categories, limitations, and controls in 
Sec. 102.4(c).
    (c) Provide Consideration for Establishing Criteria. (1) Training 
programs shall provide for the minimal number of IDT periods, annual 
training (AT), and ADT required for attaining the prescribed unit 
readiness status and maintaining individual proficiency.
    (2) Paid IDT periods shall not be less than 4 hours. No more than 
two IDT periods may be performed in any calendar day. Service 
Secretaries shall prescribe minimum standards for IDT, IAW 37 U.S.C. 
206.
    (3) IDT periods for points only (without pay) shall not be less than 
2-hours duration with a maximum of two points authorized in any 1 
calendar day (one point in any 1 calendar day for attendance at 
professional or trade conventions) (DoD Instruction 1215.7.\3\)
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 102.1(a).
---------------------------------------------------------------------------

    (4) Where practical, multiple IDT periods (MIDTPs) shall be used to 
maximize training effectiveness.
    (d) Provide Additional IDT Periods. Additional IDT periods are 
intended to improve readiness by providing for individuals and units to 
receive required and necessary training for attaining and maintaining 
designated readiness levels. The Secretary concerned shall establish 
guidance for and approve use of additional IDT periods IAW limits in 
paragraphs (d)(1) through (d)(3) of this section.
    (1) Those training periods are intended for the principal use of 
non-technician drilling Reservists. The RC shall identify additional IDT 
periods separately from normal unit or individual training periods in 
budget documents and in internal records so that training period costs 
and training support costs for each type of additional

[[Page 556]]

training clearly may be identified, justified, and audited. Those 
additional IDT periods used by technicians shall be identified 
separately in budget documents to monitor compliance with DoD policy.
    (2) Three categories of additional IDT periods are, as follows:
    (i) Additional training periods (ATPs) for units, subunits, and 
individuals are for accomplishing additional required training, as 
defined by a unit's postmobilization mission. The number of those 
training periods shall not exceed 12 each fiscal year (FY) for any 
member.
    (ii) Additional flying and flight training periods (AFTPs) are 
authorized for primary aircrew members for conducting aircrew training 
and combat crew qualification training to attain and maintain aircrew 
flying proficiency and sustain mobilization readiness. AFTPs shall not 
be in addition to the ATPs in paragraph (d)(2)(i) of this section. The 
number of those training periods shall not exceed 48 each FY for any 
aircrew member, unless specifically authorized by the Secretary 
concerned.
    (iii) Readiness management periods (RMPs) are used to support the 
ongoing day-to-day operation of the unit, accomplishing unit 
administration, training preparation, support activities, and 
maintenance functions. The number of RMPs shall not exceed 24 each FY 
for any member. Those training periods shall be used only where 
sufficient full-time support (FTS) personnel are not available to 
accomplish those duties. RMPs shall not be performed on the same day 
another training period (IDT, ATP, or AFTP) is being performed and not 
more than one RMP shall be performed by an individual in 1 calendar day.
    (3) Notwithstanding the limitations in paragraphs (d)(2)(i) and 
(d)(2)(iii) of this section, the Service Secretary may authorize ATPs or 
RMPs in excess of those specified on an exception basis. Exception shall 
be strictly limited to specific skills and missions requiring training 
in excess of that authorized in paragraphs (d)(2)(i) and (d)(2)(iii) of 
this section. In no case shall ATPs or RMPs exceed 30 each year for each 
person. Those training periods shall not be used for augmenting missions 
or functions, but must provide bona fide training opportunities required 
to meet readiness levels. That authority may not be delegated below the 
Service Secretary.
    (e) Provide AD. At any time, an authority designated by the 
Secretary concerned may order a member of the RC under his or her 
jurisdiction to AD or retain him or her on AD with the consent of the 
member under the authority of 10 U.S.C. 672(d). However, a member of the 
ARNG of the United States or the ANG of the United States may not be 
ordered to AD under that authority without the consent of the governor 
or other appropriate authority of the State or territory, the 
Commonwealth of Puerto Rico, or the District of Columbia. Five 
categories of AD for RC members serving with RC are, as follows:
    (1) Initial AD training (IADT), which includes basic military 
training and technical skill training, is required for all enlisted 
accessions. For nonprior service (NPS) male enlistees who are between 
the ages of 18\1/2\ and 26 years, that IADT shall be for a period of not 
less than 12 weeks to commence, insofar as practical, within 270 days 
after the date of enlistment. For all other enlistees, the period of 
IADT shall be as prescribed by the Secretary concerned to commence, 
insofar as practical, within 360 days after entry into Service, except 
that in time of war or national emergency declared by Congress or the 
President basic training (or its equivalent) shall be for a period of 
not less than 12 weeks. Enlisted members receiving stipends under the 
Armed Forces Health Professions (AFHP) Stipend Program for Reserve 
Service (the Stipend Program) are not required to participate in Ready 
Reserve training until they have completed their educational training 
(10 U.S.C. 511(b), 511(d), 671(b), and 2128).
    (2) AT may be required for all members of the Ready Reserve. By DoD 
policy, members of the Selected Reserve shall perform AT. For all 
members of Selected Reserve units, except for those in the National 
Guard, that training shall be for not less than 14 days (exclusive of 
travel time) each year (10 U.S.C. 270(a)(1)). National

[[Page 557]]

Guard units are required to perform full-time military training (in AD 
or full-time National Guard duty status) for at least 15 days each year 
including travel time (32 U.S.C. 502).
    (3) ADT is authorized to provide for full-time attendance at 
organized and planned specialized skill training, flight training, 
combat crew training, unit conversion training, refresher and 
proficiency training, officer acquisition training, professional 
development education programs, etc., for providing RC members with 
necessary skills and disciplines supporting RC missions. Authorized ADT 
must provide a primary training content to the recipient. Authorization 
for ADT shall be managed IAW DoD Directives established by the 
Secretaries concerned. Nontechnician personnel shall receive priority 
consideration for such training.
    (4) AD for special work (ADSW) is authorized for personnel from 
applicable military or Reserve personnel appropriations for projects 
supporting active or RC programs, such as annual screening, operation of 
training camps, training ships, and unit conversions to new weapons 
systems, when such duties are essential to the organization. Projects 
supporting study groups, training site and exercises, short-term mission 
projects, and administrative support functions also are included. 
Authorization of ADSW shall be managed IAW DoD Directives established by 
the Secretary concerned. ADSW tours exceeding 180 days are accountable 
against AD strengths (regular, or RC AD end strengths, consistent with 
pay appropriations) IAW 10 U.S.C. 115(b)(1)(B). By DoD policy, those 
tours normally are limited to 139 days, or less, in 1 FY. Exceptions to 
the 139-day limit may be granted on an individual basis for specific 
mission requirements. Nontechnician personnel shall receive priority 
consideration for those tours. Short breaks in tours; i.e., 30 days or 
less, to circumvent that requirement, are not authorized.
    (5) AD, other than for training or ADSW, including full-time 
National Guard duty, is authorized in support of RC missions, under 10 
U.S.C. 265, 672(d), 678, 715, 3019, 3033, 3496, 8019, 8033, and 8496 and 
32 U.S.C. 708. Personnel performing such duty are included in the FTS 
numbers for each RC under the collective title of Active Guard or 
Reserve (AGR), including Navy training and administration of Reserves 
(TARs) and all statutory tour personnel.
    (f) Provide for Muster Duty (MD). (1) To meet the annual screening 
requirement established by Sec. 102.6(b)(1), an authority designated by 
the Secretary concerned may order a member of the IRR to MD (established 
by 10 U.S.C. 687). MD shall include a minimum of 2 hours at the muster 
site and may not include more than 1 day, including travel, each 
calendar year. An allowance for MD shall be paid IAW 37 U.S.C. 433 and 
DoD Instruction 1215.7 at the rate determined by the DoD Per Diem 
Committee and included in the ``DoD Military Pay and Allowances 
Entitlement Manual.''
    (2) In cases where a total of more than 1 day is required to meet 
the annual screening requirement, or in other specific circumstances 
approved under regulations issued by the Secretary concerned, ADT may be 
used instead of MD.
    (g) Restrict Assignment Outside United States. A member of the RCs 
may not be assigned to AD on land outside the United States, its 
territories and possessions, until the member has completed the basic 
training requirements of the member's Armed Forces (10 U.S.C. 671(a)).
    (h) Require Training Participation. The Secretaries concerned shall 
establish minimal standards for satisfactory participation at required 
training periods, which shall include the number and percentages of 
training periods for meeting the minimal standards. Individuals 
attending IDT periods are required to meet those minimal training 
standards. Those standards shall contain procedures for accounting for 
absences and excused drills, as necessary. Individuals voluntarily may 
attend extra IDT periods for points, IAW DoD Directive 1215.13.\4\
---------------------------------------------------------------------------

    \4\ See footnote 1 to Sec. 102.1(a).
---------------------------------------------------------------------------



Sec. 102.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Reserve Affairs) (ASD(RA)) 
shall:

[[Page 558]]

    (1) Establish DoD policy and provide guidance for RC training and 
retirement categories.
    (2) Establish policy guidance for the minimal training criteria and 
the AD requirements associated with each category.
    (b) The Secretaries of the Military Departments and the Commandant 
of the United States Coast Guard (USCG) shall:
    (1) Place all RC members in a RCC and TRC IAW criteria established 
in appendices A and D of this part.
    (2) Ensure that plans and policies for the management of RCCs are 
consistent with this part.
    (3) Ensure that RC members receive training and serve on AD IAW the 
minimum criteria established for each RCC in Sec. 102.4(c).



Sec. 102.6  Procedures.

    (a) Selected Reserve--(1) IDT. Except as specifically provided in 
paragraph (b) of this section, members of the Ready Reserve shall 
participate in 48 scheduled training periods each year. By DoD policy, 
that requirement applies to all members of Selected Reserve units (10 
U.S.C. 270(a)(1) and 32 U.S.C. 502).
    (2) AT. Except as specifically provided in paragraph (b) of this 
section, AT is required for all members of the Ready Reserve. By DoD 
policy, that requirement is limited to members of the Selected Reserve. 
For members of the Reserves, that training shall be for not less than 14 
days (exclusive of travel time) each year except, as in paragraph (a)(2) 
of this section. Units of the National Guard are required to perform 
full-time military training for at least 15 days each year, including 
travel time.
    (i) AT tours for individual mobilization augmentees (IMAs) or other 
Reservists assigned as an individual to any training categories ordered 
to AT at Headquarters, support organizations, or to activities not 
operating on Saturday, Sunday, or Federal holidays, normally are limited 
by DoD policy to 12 days excluding travel time; i.e., from Monday of the 
first week through Friday of the second week.
    (ii) When required, members may be ordered to AT for longer periods 
than 12 days (excluding travel time), up to a maximum of 30 days each 
FY, for activities that enhance readiness, such as participating in 
mobilization exercises. Training may begin on days other than Monday, 
when special activities begin during the week.
    (iii) AT normally is performed during one consecutive period. Split 
tours may be authorized for selected units or individuals, if required 
to meet training missions. Any additional costs must be justified fully. 
Authorization for variations in AT lengths shall be managed IAW DoD 
Directives established by the Secretaries concerned.
    (3) Short Periods of AD Performed by Members of the Selected 
Reserve. Under 10 U.S.C. 672(d), 673, 673b, 3500, or 8500, that AD may 
not be substituted for training required by 10 U.S.C. 270 and by 
paragraph (a)(2) of this section, unless in the judgement of the 
Secretary concerned:
    (i) AD service performed under 10 U.S.C. 672(d), 673, 673b, 3500, or 
8500 is equivalent to the training that might have been performed under 
the authority of 10 U.S.C. 270 and paragraph (a)(2) of this section.
    (ii) AD service under 10 U.S.C. 672(d), 673, 673b, 3500, or 8500, 
when combined with training required by 10 U.S.C. 270 and paragraph 
(a)(2) of this section constitutes an undue personal hardship.
    (4) NPS Personnel. (i) Those personnel enlisted directly into an 
Armed Force who have not completed the basic training (IADT) 
requirements of that Armed Force. During war, the period of required 
basic training (or its equivalent) may not be less than 12 weeks. 
Exceptions for personnel with civilian-acquired skills may be 
authorized, as specified in the implementing regulations of the Military 
Departments.
    (ii) The Secretaries concerned may require members enlisted for 
service in the Selected Reserve to participate in IDT periods before 
completing IADT. Those training periods may be with or without pay.
    (iii) IADT, which includes basic military training and technical 
skill training, is required for all enlisted accessions. For NPS male 
enlistees who are between ages of 18\1/2\ and 26 years, that IADT shall 
be for a period of not less

[[Page 559]]

than 12 weeks to commence, insofar as practical, within 270 days after 
the date of enlistment. For all other enlistees and inductees, IADT 
shall be for a period prescribed by the Secretary concerned to commence, 
insofar as practical, within 360 days after entry into Service, except 
that, during war or national emergency declared by Congress or the 
President, the period of basic training (or its equivalent) shall be for 
a period of not less than 12 weeks. Individuals receiving stipends under 
the AFHP Stipend Program for Reserve Service are not required to 
participate in Ready Reserve training, until they have completed their 
educational training (10 U.S.C. 511(b), 511(d), 671(b), and 2128).
    (iv) Individual Reservists are exempt from participating in AT or 
ADT during the last 120 days before completing their Military Service 
obligation (MSO) if they have served on AD for 1 year, or longer. (See 
10 U.S.C. 270(a)).
    (b) IRR--(1) IRR Screening. Members of the IRR, not scheduled for 
mandatory or voluntary training, are required to serve at least 1 day of 
MD or AD each year to accomplish annual screening requirements IAW 10 
U.S.C. 271(a), 275(a), 652, and 1004. Exemptions from IRR screening 
during 1 FY are authorized for members who served on AD during the FY; 
who are scheduled for discharge from the Military Service during the FY; 
who reside outside geographical limitations established by the 
Secretaries of the Military Departments; who are in the grade of O-4, or 
higher, and have no remaining MSO; or, who were successfully screened in 
the preceding FY. Under no circumstances should a member serve an 
initial period in the IRR of more than 18 months without participating 
in a screening either during an annual muster or during a period of 
training. The Services are required to maintain the current status of 
each member's physical condition, dependency status, military 
qualification, civilian occupational skills, availability for service, 
to include current address, and other information, as prescribed.
    (2) IRR Members. Those members, including individuals enlisting 
directly into the IRR, may participate voluntarily in IDT for points 
only IAW the regulations of the Military Services.
    (c) Standby Reserve. The Standby Reserve consists of personnel who 
maintain their military affiliation without being in the Ready Reserve 
IAW 10 U.S.C. 267, 272, and 273 and DoD Directive 1235.9.\5\
---------------------------------------------------------------------------

    \5\ See footnote 1 to Sec. 102.1(a).
---------------------------------------------------------------------------

    (1) Active Status Listing. The following members of the Standby 
Reserve are in an active status. By DoD policy, members of the Standby 
Reserve in an active status may participate voluntarily without pay in 
RC training for retirement points only. Those following members may 
receive promotion credit, be considered for promotion, and if selected, 
be promoted:
    (i) Personnel who have not fulfilled their statutory MSO.
    (ii) Personnel temporarily assigned for hardship, or other cogent 
reason, who intend returning to the Ready Reserve.
    (iii) Personnel retained in an active RC status under 10 U.S.C. 
1006.
    (iv) Members transferred from the Ready Reserve to the Standby 
Reserve, after being designated as ``key personnel'' by their employers, 
may volunteer for assignment to the Standby Reserve Active Status List 
for the period they remain designated as key personnel. Individuals 
desiring to be transferred shall apply directly to the RC concerned.
    (2) Inactive Status List. The following members of the Standby 
Reserve are in an inactive status (they may not participate for points, 
pay, or promotion credit and may not be considered for promotion, or 
promoted):
    (i) Members transferred to the Inactive Status List instead of 
separating IAW 10 U.S.C. 1209.
    (ii) All other members transferred to the Inactive Status List IAW 
DoD Directive 1235.9. Personnel enrolled in a military school course, 
including correspondence courses, when transferred from the Ready 
Reserve to the Standby Reserve Inactive Status List may continue 
voluntarily participating in the course until completion. Those 
personnel shall not be entitled to pay and allowances, travel and 
transportation, or

[[Page 560]]

to earn promotion and retirement points for that training.
    (d) Retired Reserve. Consists of all personnel transferred to the 
Retired Reserve and subject to mobilization IAW DoD Directive 1352.1.\6\ 
Retired Reservists voluntarily may train (with or without pay) with a 
unit where they have premobilization orders. Suitable arrangements with 
the unit are required. The Retired Reserve consists of the following 
categories:
---------------------------------------------------------------------------

    \6\ See footnote 1 to Sec. 102.1(a).
---------------------------------------------------------------------------

    (1) Reserve members in receipt of retired pay under 10 U.S.C. 
chapter 67.
    (2) Reserve members who have transferred to the Retired Reserve 
after completing 20 qualifying years creditable for retired pay under 10 
U.S.C. chapter 67, but who are not yet 60 years of age, or are age 60 
and have not applied for retired pay.
    (3) Reserve members retired for physical disability under 10 U.S.C. 
1201, 1202, 1204, or 1205. Members have completed 20 years of Military 
Service creditable for retired pay, under 10 U.S.C. chapter 67 or are 
more than 30-percent disabled.
    (4) Reserve officers and enlisted members who have retired after 
completion of 20, or more, years of active Military Service. That does 
not include Regular enlisted members of the Army, the Navy, the Air 
Force, or the Marine Corps, with 20 to 30 years of Military Service who 
are assigned to the Retired Reserve or transferred to the Fleet Reserve 
(Navy) or the Fleet Marine Corps Reserve.
    (5) Reserve personnel drawing retired pay based on retirement for 
reasons other than age, Service requirements, or physical disability. 
That category is restricted to those who are retired under special 
conditions, as authorized by the ASD(RA) under legislation.
    (e) Voluntary Training. Members of the RCs, not subject to mandatory 
training, shall be encouraged to participate in order to maintain their 
mobilization readiness. The opportunity to participate voluntarily 
without pay in training shall be limited by the manpower and resources 
authorized by the Secretary.
    (f) Funds. Funds for personnel in uniform Reserve, training and 
retirement categories shall be IAW DoD 7110.1-M.\7\ The Secretary 
concerned is authorized to include in the budget for the active 
component (AC) funds providing AD tours for Reserves on temporary duty 
(TDY) in support of AC and RC programs.
---------------------------------------------------------------------------

    \7\ Distribution is maintained by the Office of the Comptroller, 
DoD, Room 3A862, The Pentagon, Washington, DC 20301-1100.
---------------------------------------------------------------------------

    Appendix A to Part 102--Uniform Reserve, Training and Retirement 
                               Categories

    There are three RCCs. They are the Ready Reserve, The Standby 
Reserve, and the Retired Reserve. Each member of the National Guard and 
Reserve is assigned within one of those categories. (All National Guard 
members, including those in the Inactive National Guard (ING), are in 
the Ready Reserve.)

                       A. Ready Reserve Categories

    The Ready Reserve is comprised of military members of the Reserve 
and National Guard, organized in units or as individuals, and liable for 
order to AD in time of war or national emergency under 10 U.S.C. 672 and 
673 (reference (d)). The Ready Reserve consists of three subcategories: 
the Selected Reserve, the IRR, and the ING.
    1. Selected Reserve. The Selected Reserve consists of those units 
and individuals in the Ready Reserve designated by their respective 
Services and approved by the Chairman, Joint Chiefs of Staff (CJCS), as 
so essential to initial wartime missions that they have priority over 
all other Reserves. All Selected Reservists are in an active status. The 
Selected Reserve includes the following:
    a. Selected Reserve Units. Units manned and equipped to serve and/or 
train either as operational or as augmentation units. Operational units 
train and serve as units. Augmentation units train together, but when 
mobilized, lose their unit identity and become part of AC unit or 
activity. Selected Reserve units include:
    (1) Drilling Unit Reservists. Trained unit members participating in 
unit training activities on a part-time basis shall have the RCC and TRC 
designator of ``SA''.
    (2) Unit FTS Personnel--(a) AGR. Guard or Reserve members of the 
Selected Reserve serving on AD or full-time National Guard duty 
(includes Navy TAR personnel for organizing, administering, recruiting, 
instructing, or training RC units. All unit AGR members must be assigned 
against or attached to an authorized mobilization position in the unit 
they support. They shall have the RCC and TRC designator of ``SG.''

[[Page 561]]

    (b) Military Technicians (MTs). Drilling Reservists who are also 
Federal civilian employees providing FTS for administration, training, 
and maintenance in a Selected Reserve unit. MTS must maintain their 
status as drilling Reservists in the same unit they support as civilian 
employees. All dual status MTs must be in mobilizable positions. They 
are dual status in that they are both civilian employees and drilling 
Reservists of a Guard or Reserve unit, and are accountable under the TRC 
designator of ``SA.''
    (c) AC. AD members paid from military personnel appropriations 
assigned or attached to National Guard or Reserve units to provide 
advice, liaison, management, administration, training, and/or 
maintenance support in the category of FTS. Those members are not part 
of the Selected Reserve, but shall deploy with their assigned unit, 
should it mobilize. AC members performing FTS are counted as part of 
trained strength in units, but not in the Selected Reserve strengths.
    (d) Civil Service Employees (CIV). Those personnel are hired under 5 
U.S.C. 3101 and 32 U.S.C. 709 to provide administrative support to the 
RCs. They are in the category of FTS to the RCs, but are not part of the 
Selected Reserve.
    b. Selected Reserve IMAs. Individual members of the Selected Reserve 
assigned to an AC organization. Trained individuals preassigned to an 
AC, a SSS, or a FEMA billet that must be filled on, or shortly after, 
mobilization. IMAs participate in training activities on a part-time 
basis with an AC unit preparing for active service in a mobilization. 
The amount of training required is determined by DoD policy and may vary 
from 0 to 48 IDT periods a year. All IMAs must perform a minimum of 12 
days of AT each year and have the RCC and TRC designator of ``TB.''
    c. Training Pipeline. Selected Reserve enlisted members who have not 
yet completed IADT and officers who are in training for professional 
categories or in undergraduate flying training. IAW 10 U.S.C. 671, all 
Ready Reservists shall receive training commensurate with their intended 
wartime assignments, and must complete the basic training requirements 
of the member's Service before assignment on land outside the United 
States. The training pipeline is synonymous with the term 
``nondeployable account.'' Personnel in the training pipeline may be 
mobilized, but may not always be available for deployment with their 
units. It is DoD policy that, if otherwise eligible for mobilization and 
deployment, they shall be considered as mobilizable assets. Training 
pipeline personnel are accounted for separately in the following 
training categories:
    (1) Enlisted Members Currently on IADT. Includes the second part of 
split IADT, which has the RCC and TRC designator of ``TF.''
    (2) Enlisted Members Awaiting Second Part of Split IADT. Those 
members shall have the RCC and TRC designator of ``UQ.''
    (3) Enlisted Members Awaiting IADT. Includes members in the Selected 
Reserve serving with or without pay. NPS males between the ages of 18\1/
2\ and 26 years enlisting under 10 U.S.C. 511(d) shall enter IADT, 
insofar as practicable, within 270 days after the date of that 
enlistment. All other enlisted members shall perform IADT, insofar as 
practicable, within 360 days of their enlistment.
    (a) Members Not Authorized To Perform IDT. Service performed by 
members while in that status is not creditable toward computation of 
basic pay and shall have the RCC TRC designator ``UL.''
    (b) Members Authorized To Perform IDT. Service performed by members 
while in that status is creditable toward computation of basic pay and 
shall have the RCC TRC designator of ``UP.''
    (4) Other Selected Reserve Untrained Personnel in Training Programs. 
Includes chaplain candidates, health profession students, and early 
commissioning program participants with the RCC and TRC designator of 
``UX.''
    (5) AGR Enlisted Members Currently on, or Awaiting, IADT. Includes 
NPS AGR personnel (Navy TARs and ADSW) and has the RCC and TRC 
designator of ``US.''
    (6) Individuals in a Simultaneous Membership Program. Senior Reserve 
Officer Training Corps (ROTC) Cadets, Selected Reserve enlisted members 
in officer candidate programs, and Marine Corps Platoon Leader Class 
students who are also permitted to be members of a Selected Reserve unit 
and have the RCC and TRC designator of ``UT.''
    2. IRR and ING. The IRR (together with the ING) consists of those 
Ready Reservists not in the Selected Reserve. The IRR consists of 
Reservists in the following categories:
    a. IRR is a manpower pool comprised principally of individuals 
having had training, having served previously in the AC or in the 
Selected Reserve, and having some period of their MSO remaining. There 
are some voluntary individuals in the IRR for hardship or special nonpay 
programs providing a variety of professional assignments and 
opportunities for earning retirement points and military benefits. Those 
personnel all have an obligation to complete either MSO or another 
contractual commitment. Members voluntarily may participate in training 
for retirement points and promotion with or without pay. IRR members may 
be (but are not presently) required to meet the same training 
requirements as Selected Reservists. Required training (involuntary) may 
not exceed 30 days a year under 10 U.S.C. 270(a)(2).
    b. The IRR also includes some personnel participating in officer 
training programs or in the AFHP Stipend Program. Members in

[[Page 562]]

that stipend program are required to perform 45 days of AD for training 
a year IAW 10 U.S.C. 2121(c). The RCC and TRC designator ``PJ'' is used 
for officers not in the Selected Reserve participating in officer 
training programs, or the RCC and TRC designator ``PK'' is used for 
officers not in the Selected Reserve participating in the Stipend 
Program.)
    c. The IRR also includes members of the Delayed Entry Program (DEP) 
enlisted under 10 U.S.C. 513. (Currently, there is no requirement to 
account for those untrained members of the IRR in the RCCPDS.)
    d. The ING consists of National Guard personnel in an inactive 
status in the Ready Reserve, not in the Selected Reserve, attached to a 
specific National Guard unit. To remain ING members, members must muster 
once a year with their assigned unit, but they do not participate in 
training activities. On mobilization, ING members mobilize with their 
units. Similar to other IRR, some ING members have legal and contractual 
obiligations. ING members may not train for points or pay and are not 
eligible for promotion. Currently, the ING category is used only by the 
ARNG and has the RCC and TRC designator of ``II''.

                      B. Standby Reserve Categories

    The Standby Reserve consists of personnel maintaining their military 
affiliation without being in the Ready Reserve, having been designated 
key civilian employees, or who have a temporary hardship or disability. 
Those individuals are not required to perform training and are not part 
of units. The Standby Reserve is a pool of trained individuals who may 
be mobilized as needed to fill manpower needs in specific skills. The 
Standby Reserve consists of the following training categories:
    1. Active Status List. The following members of the Standby Reserve 
are in an active status:
    a. Members designated as key employees IAW DoD Directive 1200.7,\1\ 
and transferred from the Ready Reserve to the Standby Reserve Active 
Status List for the period they remain designated as key personnel. 
Individuals desiring to be transferred shall apply directly to the DoD 
Component concerned. Key employees may participate voluntarily without 
pay in RC training for retirement points only and may be considered for 
promotion. While there is no statutory prohibition against paying active 
status Standby Reservists for IDT or AD, by DoD policy members of the 
Standby Reserve who have been screened out of the Ready Reserve as key 
employees may not be paid for training. They have the RCC and TRC 
designator of ``YC.''
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 102.1(a).
---------------------------------------------------------------------------

    b. Personnel not having fulfilled their statutory MSO, or 
temporarily assigned for hardship reason intending to return to the 
Ready Reserve, or retained by an RC in an active status under 10 U.S.C. 
1006. Those members may participate voluntarily with or without pay and 
may receive credit for, and be considered for, promotion. They have the 
RCC and TRC designator of ``YD.''
    2. Inactive Status List. The following members of the Standby 
Reserve are in an inactive status. They may not participate for points 
or pay and may not receive credit for or be considered for promotion:
    a. Members transferred to the Standby Reserve Inactive Status List 
under 10 U.S.C. 1209 instead of separating. They have the RCC TRC 
designator of ``YL.''
    b. All other members transferred to the Standby Reserve Inactive 
Status List IAW DoD Directive 1235.9. They have the RCC TRC designator 
of ``YN.''

                      C. Retired Reserve Categories

    1. Consists of all personnel transferred to the Retired Reserve. 
Retired Reservists voluntarily may train, with or without pay, with a 
unit where they have premobilization orders. Suitable arrangements with 
the unit are required. The Retired Reserve consists of the following 
retired categories:
    a. Reserve members who have completed 20 qualifying years creditable 
for retired pay and are in receipt of retired pay (at, or after, age 60) 
under 10 U.S.C. chapter 67. Those members shall be assigned the RCC and 
TRC designator of ``V1.''
    b. Reserve members who have completed 20 qualifying years creditable 
for retired pay and are not yet 60 years of age, or are age 60 and have 
not applied for retirement pay. Those members shall be assigned the RCC 
and TRC designator of ``V2.''
    c. Reserve members retired for physical disability under 10 U.S.C. 
1201, 1202, 1204, or 1205. Members have completed 20 years of service 
creditable for retired pay or are more than 30-percent disabled. Those 
members shall be assigned the RCC and TRC designator of ``V3.''
    d. Reserve enlisted members who have completed 20, or more, years of 
active service and are receiving retired or retainer pay. Regular 
enlisted personnel of the Army, the Navy, the Air Force, and the Marine 
Corps with 20 to 30 years of active Military Service who are transferred 
to the Reserve or the Fleet Naval Reserve on retirement until they have 
completed 30 years of total active and retired or retainer service, are 
NOT included in that category. That includes Regular (but not Reserve) 
Navy and Marine Corps retirees who are transferred to the Fleet Reserve 
and the Fleet Mairne Corps Reserve, respectively. Those personnel shall 
be assigned the RCC and TRC designator of ``V4''.

[[Page 563]]

    e. Reserve personnel drawing retired pay under other than age, 
service requirements, or physical disability. That category is 
restricted for retirement under special conditions, as authorized by the 
Office of the ASD(RA) (OASD(RA)) under legislation. Those personnel 
shall be assigned the RCC and TRC designator of ``V5.''
    2. All members retired having completed at least 20 years of active 
service (Regular or Reserve), regardless of the retired list where 
assigned, may be ordered to AD when required by the Secretary of the 
Military Department concerned, IAW 10 U.S.C. 688.
    3. Retired Reserve members may be ordered to AD in their status as 
Retired Reserve members. It is not necessary to place the member in the 
Ready Reserve for that purpose.
    4. Former members having completed 20 satisfactory years service 
creditable for retirement, but electing to be discharged from the RCs, 
are not a part of the Retired Reserve nor Military Service members.

   Appendix B to Part 102--Members Participating in Approved Programs 
                    Outside The Department of Defense

                                 A. SSS

    The SSS administers the Military Selective Service Act (MSSA), which 
authorizes the Director of Selective Service, by delegation from the 
President, ``* * * to order to active duty with their consent and to 
assign to the Selective Service System such officers of the selective-
service section of the State headquarters and headquarters detachments 
and such other officers of the federally recognized National Guard of 
the United States or other armed forces personnel (including personnel 
of the reserve components thereof), as may be necessary for the 
administration of the national and of the several State headquarters of 
the Selective Service System.''
    1. AD. Requests for assignment to the SSS and an AD status must be 
approved IAW DoD Directive 1000.17.\1\ Costs for those members shall be 
reimbursed to the Department of Defense. Members shall not be assigned 
to a RCC or TRC, shall not be counted against RC strengths, and shall 
not be included in the RCCPDS files.
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 102.1(a).
---------------------------------------------------------------------------

    2. Inactive Duty. The Department of Defense and the Office of the 
Director of Selective Service shall agree annually on the number of RC 
members assigned as IMAs to the SSS. The SSS shall reimburse the 
Department of Defense for IDT and AT for those members.

         B. Civil Defense Activities and CONUS Defense Programs

    1. The U.S. civil defense and CONUS defense program are an integral 
part of U.S. national security. Support of civil defense may be provided 
through RC members participating with Federal, State, and local civil 
agencies only when clearly furthering specifically identifiable DoD 
interest. Participation shall be in an IDT or ADT status and on a 
reimbursable basis, except when the primary basis for participating is 
to meet a DoD program requirement. Subject to priorities and guidance in 
DoD Directive 3025.10,\2\ military support of those activities is a 
proper mission for DoD Components. Military planning and liaison may be 
provided by RC members at selected civil government and military 
headquarters and includes such tasks and responsibilities as mutual 
support to civil authorities for civil defense, CONUS defense, physical 
security of key assets, and disaster relief operations.
---------------------------------------------------------------------------

    \2\ See footnote 1 to Sec. 102.1(a).
---------------------------------------------------------------------------

    2. Programs involving RC members in civil defense activities 
directly supporting the FEMA or State and local government under a FEMA 
program must be approved jointly by the FEMA and the Department of 
Defense. Assigning members in an AD (other than for training) status 
supporting of civil defense outside the Department of Defense must be 
approved IAW DoD Directive 1000.17. The following programs are approved 
for such participation:
    a. Federal Liaison Officers. Those are Reserve officers serving as 
IMAs performing planning and liaison responsibilities between DoD 
Components and Federal regional Headquarters, including interface with 
the civil sector, as directed by their DoD Component through the 
Military Service planning agent. Federal liaison officers function 
primarily in support of DoD missions. All costs are paid by the DoD 
Components. Each Military Department is authorized to assign one or more 
Federal liaison officers (other than flag or general officer rank) at 
each FEMA region and at FEMA national Headquarters.
    b. State Liaison Officers. Those are reserve officers serving as 
IMAs performing planning and liaison responsibilities betwen their DoD 
Components and State or U.S. Territory Civil Defense or Emergency 
Service Headquarters for interfacing with the civil sector, as directed 
by their DoD Component through the Military Service planning agent. 
State liaison officers function primarily in support of DoD missions. 
All costs are paid by the DoD Component. Each Military Department is 
authorized to assign one or more State liaison officers (other than flag 
or general officer rank) at each State or U.S. territorial Headquarters 
and shall assign or attach such

[[Page 564]]

officers to functions supervised by the State Area Command (STARC).
    c. Regional Military Emergency Coordinators (RMECs). Those are 
Reserve officers serving as IMAs and performing resource claimancy tasks 
for their DoD Components while participating in resource management of 
emergency preparedness and crisis operations under DoD Directive 
5030.45.\3\ RMEC officers function primarily in support of DoD missions. 
All costs are paid by the DoD Component. Each Military Department is 
authorized to assign one or more officers (other than flag or general 
officer rank) to the DoD RMEC team.
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 102.1(a).
---------------------------------------------------------------------------

    d. Civil Preparedness Support Detachments (CPSD). Those are Selected 
Reserve units of the U.S. Army Reserve (USAR), whose missions are to 
augment the communications and security capabilities of FEMA emergency 
operations centers.
    e. FEMA IMAs. Those are IMAs assigned to responsibilities supporting 
civil defense planning at FEMA Headquarters and regions, and at State 
and local civil defense activities. FEMA IMAs perform 2 weeks of annual 
ADT, and the FEMA reimburses the Department of Defense for those 
training costs.
    3. Members of the IRR and Standby Reserve Active Status List, 
voluntarily participating in approved civil defense activities, may 
receive retirement points IAW DoD Instruction 1215.7.
    4. IRR members participating in civil defense activities may request 
ADT to attend civil defense courses. If so ordered, those Reservists 
shall be entitled to pay and allowance including travel allowances for 
such training.

              Appendix C to Part 102--Definitions Explained

    1. Active Duty (AD). Full-time duty in the active Military Service 
of the United States. A general term applied to all active Military 
Service, but not including full-time National Guard duty.
    2. Active Guard Reserve (AGR). RC members of the Selected Reserve 
ordered to AD or full-time National Guard duty with their consent and 
consent of the Governor for the purpose of organizing, administering, 
recruiting, instructing, or training RC units. The two major categories 
are statutory tour officer and/or enlisted members and unit personnel.
    3. Active Status. Status of all Reserves, except those on an 
inactive status list or in the Retired Reserve. Reservists in an active 
status may train with or without pay, earn retirement points, and may 
earn credit for and be considered for promotion.
    4. AD for Special Work (ADSW). A tour of AD for Reserve personnel 
authorized from military or Reserve personnel appropriations for work on 
AC or RC programs. That includes annual screening, training camp 
operation, training ship operation, and unit conversions to new weapons 
systems when such duties are essential. ADSW may also be authorized to 
support study groups, training sites and exercises, short-term projects, 
and administrative or support functions. By policy, ADSW tours are 
normally limited to 139 days, or less, in 1 FY. Tours exceeding 180 days 
are accountable against AD or AGR end strength.
    5. AD for Training (ADT). AD that is used for training members of 
the RCs to provide trained units and qualified persons to fill the needs 
of the Armed Forces in time of war or national emergency and such other 
times as the national security requires. The member is under orders that 
provide for return to inactive status when the period of ADT is 
completed. ADT includes AT, special tours of ADT, school tours, and the 
initial duty for training performed by NPS enlistees.
    6. Annual Screening. One-day ADT or MD required each year for IRR 
members so the Armed Forces can keep current on each member's physical 
condition, dependency status, military qualifications, civilian 
occupation skills, availability for service, and other information.
    7. Annual Training (AT). The minimal period of training Reserve 
members must perform each year to satisfy the training requirements 
associated with their RC's assignment.
    8. IMA Detachments. An administrative unit organized to assist in 
training and to manage IMAs.
    9. Inactive Duty Training (IDT). Authorized training performed by a 
member of a RC not on AD, or ADT and consisting of regularly scheduled 
unit training periods, ATPs, or equivalent training, and performed by 
them in connection with the prescribed activities of the RC of which 
they are a member.
    10. Inactive Status. Status of Reserve members on an inactive status 
list of RC or assigned to the ING. Those in an inactive status may not 
train for retirement points or pay, and may not receive credit for or be 
considered for promotion or be promoted.
    11. Individual Mobilization Augmentees (IMAs). An individual 
Selected Reservist who receives training and is preassigned to an AC 
organization, a SSS or a FEMA billet that must be filled on, or shortly 
after, mobilization. IMAs train with those organizations preparing for 
mobilization. The IDT requirement for IMAs is decided by DoD Component 
policy and can vary from 0 to 48 drills a year. A minimum of 12 days AT 
is required of all IMAs.
    12. Initial ADT (IADT). Basic military training and technical skill 
training required for all enlisted accessions. For NPS male enlistees 
beween the ages of 18\1/2\ and 26

[[Page 565]]

years, that IADT shall be not less than 12 weeks and start, insofar as 
practical, within 270 days after enlistment. IADT for all other 
enlistees and inductees shall begin within 360 days after entry into 
Service. Military members may not be assigned to AD on land outside the 
United States or its territories and possessions until basic training or 
its equivalent has been completed.
    13. Key Employee. Any Reservist identified by his or her employer, 
private or public, as filling a key position.
    14. Key Position. A civilian position, public or private (designated 
by the employer IAW DoD Directive 1200.7) that cannot be vacated during 
war or national emergency.
    15. Multiple IDT Periods (MIDTPS). Two scheduled IDT periods 
performed in 1 calendar day, each at least 4 hours in duration. No more 
than two IDT periods may be performed in 1 day.
    16. Nondeployable Account. An account where Reservists (officer and 
enlisted) either in units or as individuals are assigned to a RCC or a 
TRC, when the individual has not completed IADT or its equivalent. 
Reservists in a nondeployable account are not considered as trained 
strength assigned to units or mobilization positions and are not 
deployable overseas on land with those units or mobilization positions. 
See also ``training pipeline,'' definition 25., below.
    17. Nonprior Service (NPS) Personnel. Individuals without any prior 
Military Service, who have not completed IADT or its equivalent, and who 
receive a commission or warrant in, or enlist directly into, a U.S. 
Armed Force.
    18. Qualifying Years Creditable for Retired Pay. The time Guardsman 
or Reservist must serve to be eligible for retired pay at age 60 years. 
Individuals must have at least 20 years of service in which they 
received at least 50 retirement points, and the last 8 years of years of 
service must have been served in a RC.
    19. Reserve Component (RC) Category (ROC). The category that 
identifies an individual's status in a RC. The three RCCs are Ready 
Reserve, Standby Reserve, and Retired Reserve. Each Reservist is 
identified by a specific RCC designation.
    20. Reserve Components (RCs). RCs of the U.S. Armed Forces are, as 
follows:
    a. The ARNG of the United States.
    b. The USAR.
    c. The U.S Naval Reserve (USNR).
    d. The U.S. Marine Corps Reserve (USMCR).
    e. The ANG of the United States.
    f. The U.S. Air Force Reserve (USAFR).
    g. The U.S. Coast Guard Reserve (USCGR).
    21. Secretary of Military Department. The Secretaries of the Army, 
the Navy, and the Air Force; or the Secretary of Transportation, when 
the Coast Guard is operating as a DoT Agency.
    22. Trained Strength in Units. Those personnel (Reservists, AGR, and 
AC) assigned to units who, in the case of enlisted members, have 
completed IADT of 12 weeks, or its equivalent, and are eligible for 
deployment overseas on land when mobilized under proper authority. 
Excludes personnel in nondeployable accounts or a training pipeline.
    23. Training and Retired Category (TRC). The category identifying 
(by specific TRC designator) a Reservist's training or retirement status 
in a RCC and a RC.
    24. Training Period. An authorized and scheduled regular IDT period. 
A training period must be at least 4 hours. Previously used 
interchangeably with other common terms such as drills, drill period, 
assemblies, or periods of instructions, etc.
    25. Training Pipeline. An RCC designation that identifies officers 
in professional or flying training and untrained enlisted personnel who 
have not completed IADT of 12 weeks, or its equivalent. See also 
``nondeployable account,'' definition 16., above.
    26. Training Unit. A unit established to provide military training 
to individual Reservists or to RC units.
    27. Unit. For an RC of the Armed Forces, denotes a Selected Reserve 
unit organized, equipped, and trained for mobilization to serve on AD as 
a unit or that augments or shall be augmented by another unit. 
Headquarters and support functions without wartime missions are not 
considered units for accounting for units and individuals in the 
Selected Reserve.
    28. Voluntary Training. Training in a nonpay status for IRRs and 
active status Standby Reservists. Participation in voluntary training is 
for retirement points only and may be achieved by training with Selected 
Reserve or voluntary training units; by ADT; by completion of authorized 
military correspondence courses; by attendance at designated courses of 
instruction; by performing equivalent duty; by participating in special 
military and professional events designated by the Military Department; 
or by participating in authorized civil defense activities. Retirees may 
voluntarily train with organizations to which they are properly 
preassigned by orders for recall to AD in a national emergency or 
declaration of war. Such training shall be limited to that training made 
available within the resources authorized by the Secretary concerned.
    29. Voluntary Training Unit or Reinforcement Training Unit. A unit 
formed by volunteers to provide RC training in a nonpay status for IRRs 
and active status standby Reservists attached under competent orders and 
participating in such unit for retirement points. Also called 
``reinforcement training unit.''

[[Page 566]]

Pt. 102, App. D

                                                         Appendix D to Part 102--Authorized Reserve, Training and Retirement Categories                                                         
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            Minimum number of  Minimum number of                                          Currently used by                     
    RCC       RC sub-     RCC designator        TRC         Comprised of       IDT periods         days of at          Remarks      ------------------------------------------------------------
             category                       designator                      required annually  required annually                       ARNG     USAR     USNR    USMCR     ANG     USAFR   USCGR
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Ready       Selected    S--trained in      A             Individuals in     48...............  Reserve, 14 days   10 U.S.C. 270(a)   .......  X        X        X        .......  X       X     
 reserve.    reserve.    units.                           units.                                (exclude travel)   (1) (reference                                                               
                                                                                                                   (d)) requires 14                                                             
                                                                                                                   days.                                                                        
                                           ............                                        Guard, 15 days     32 U.S.C. 502      X        .......  .......  .......  X        ......  ......
                                                                                                (include travel)   (reference (g))                                                              
                                                                                                                   requires 15 days.                                                            
                                           G             AGR..............  N/A..............  .................  AGR may be         X        X        X        X        X        X       X     
                                                                                                                   required to                                                                  
                                                                                                                   attend drills.                                                               
                                                                                                                   (Includes Navy                                                               
                                                                                                                   Tars and ADSW,                                                               
                                                                                                                   USCGR TEMAC and                                                              
                                                                                                                   special active                                                               
                                                                                                                   duty for                                                                     
                                                                                                                   training (SADT),                                                             
                                                                                                                   Marine Corps FTS                                                             
                                                                                                                   and all                                                                      
                                                                                                                   statutory                                                                    
                                                                                                                   tours.)                                                                      
           -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                        T--trained         B             IMAs.............  IDT varies         Reserve-12 to 14   Unless training    .......  X        X        X        .......  X       X     
                         individuals,                                        between 0 and 48   days (exclude      can be                                                                       
                         nonunit.                                            days each year,    travel).           accomplished on                                                              
                                                                             as determined by                      weekends, at is                                                              
                                                                             service policy.                       limited to 12                                                                
                                                                                                                   days by policy.                                                              
                                                                                                                   Replaces                                                                     
                                                                                                                   previous TRCs A,                                                             
                                                                                                                   B, C, and D for                                                              
                                                                                                                   IMAs                                                                         
           -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                        U--training        F             Personnel          0................  N/A..............  Enlisted.          X        X        X        X        X        X       X     
                         pipeline, non-                   currently on                                             Includes second                                                              
                         deployable                       IADT.                                                    part of split                                                                
                         account.                                                                                  training and                                                                 
                                                                                                                   Army one-station                                                             
                                                                                                                   unit training                                                                
                                                                                                                   (applies to TRCs                                                             
                                                                                                                   F, Q, and P)                                                                 
                                           L             Personnel          Not authorized to  N/A..............  .................  X        X        X        X        X        X       X     
                                                          awaiting IADT.     perform IDT.                                                                                                       
                                           P             Personnel          Minimum IDT to be  N/A..............  Includes           X        X        X        X        X        X       X     
                                                          awaiting IADT      determined by                         personnel with                                                               
                                                          and authorized     DoD component                         or without pay.                                                              
                                                          to perform IDT.    policy.                                                                                                            

[[Page 567]]

                                                                                                                                                                                                
                                           Q             Personnel          48...............  N/A..............  .................  X        X        X        X        X        X       X     
                                                          awaiting second                                                                                                                       
                                                          part of IADT.                                                                                                                         
                                           S             AGR currently on,  Determined by DoD  N/A..............  Includes NPS AGR   .......  .......  X        .......  .......  ......        
                                                          or awaiting IADT.  component policy.                     (Navy tar                                                                    
                                                                                                                   personnel.                                                                   
                                           T             Individuals in a   48...............  Same as TRC A....  Senior ROTC        X        X        .......  X        X        X       ......
                                                          simultaneous                                             cadets or Marine                                                             
                                                          membership.                                              Corps platoon                                                                
                                                                                                                   leader class                                                                 
                                                                                                                   members who are                                                              
                                                                                                                   also permited to                                                             
                                                                                                                   be members of a                                                              
                                                                                                                   selected reserve                                                             
                                                                                                                   unit.                                                                        
                                           X             Personnel in       48...............  Same as TRC A....  Selected reserve   X        X        .......  X                               
                                                          other training                                           untrained member                                                             
                                                          programs.                                                in other                                                                     
                                                                                                                   training                                                                     
                                                                                                                   programs                                                                     
                                                                                                                   including                                                                    
                                                                                                                   chaplains,                                                                   
                                                                                                                   medical, health                                                              
                                                                                                                   professional                                                                 
                                                                                                                   stipend, and                                                                 
                                                                                                                   early                                                                        
                                                                                                                   commissioning.                                                               
                                                                                                                   Must meet the                                                                
                                                                                                                   same training                                                                
                                                                                                                   requirements as                                                              
                                                                                                                   TRC A reservists.                                                            
           -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
            IRR and     R--IRR...........  E             Individual         N/A..............  1................  IRR members may    .......  X        X        X        .......  X       X     
             ING.                                         members of the                                           voluntarily                                                                  
                                                          ready reserve                                            participate in                                                               
                                                          not in selected                                          training for                                                                 
                                                          reserve                                                  retirement                                                                   
                                                          (includes                                                points and                                                                   
                                                          officers                                                 promotion with                                                               
                                                          awaiting AD or                                           or without pay.                                                              
                                                          selected reserve                                         Required                                                                     
                                                          assignment).                                             training may not                                                             
                                                                                                                   exceed 30 days                                                               
                                                                                                                   each year (10                                                                
                                                                                                                   U.S.C.                                                                       
                                                                                                                   270(a)(2),                                                                   
                                                                                                                   reference (d)).                                                              
                                          ------------------------------------------------------------------------------------------------------------------------------------------------------
                                           H             Untrained members  .................  .................  .................  .......  X        X        X        .......  X       X     
                                                          of the IRR.                                                                                                                           
                                                          (DEP) section                                                                                                                         
                                                          513 of reference                                                                                                                      
                                                          (d).                                                                                                                                  
                       -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 568]]

                                                                                                                                                                                                
                        P--ready reserve   J             Personnel not in   0................  As required by     Chaplain and       .......  X        X        X        .......  X       X     
                         training.                        the selected                          specific program.  judge advocate                                                               
                                                          reserve                                                  general (JAG)                                                                
                                                          participating in                                         schooling,                                                                   
                                                          officer training                                         education delay,                                                             
                                                          programs.                                                ROTC assignment                                                              
                                                                                                                   delay, Army                                                                  
                                                                                                                   early                                                                        
                                                                                                                   commissioning                                                                
                                                                                                                   program, Coast                                                               
                                                                                                                   Guard direct                                                                 
                                                                                                                   commission                                                                   
                                                                                                                   candidates,                                                                  
                                                                                                                   Marine platoon                                                               
                                                                                                                   leader class.                                                                
                                           K             Personnel not in   0................  45 days..........  AFHP stipend       .......  X        X        .......  .......  X             
                                                          the selected                                             programs.                                                                    
                                                          reserve                                                  Requires 45 days                                                             
                                                          participating in                                         AD annually.                                                                 
                                                          AFHP stipend                                             Section 2121(c)                                                              
                                                          programs.                                                of reference (d)                                                             
                                                                                                                   and DoD                                                                      
                                                                                                                   directive 1215.4                                                             
                                                                                                                   (reference (s)).                                                             
                       -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                        I--ING...........  I             ING..............  0................  1................  Must meet annual   X        .......  .......  .......  .......  ......  ......
                                                                                                                   muster with                                                                  
                                                                                                                   assigned unit.                                                               
                                                                                                                   May not train                                                                
                                                                                                                   for points or                                                                
                                                                                                                   pay and are not                                                              
                                                                                                                   eligible for                                                                 
                                                                                                                   promotion.                                                                   
-----------                                                                                                                                                                                     
Standby                 Y--standby.......  C             Active status      0................  0................  Key employees,     .......  X        X        X        .......  X       X     
 reserve.                                                 list.                                                    only, per DoD                                                                
                                                                                                                   directive 1200.7                                                             
                                                                                                                   (reference (n)).                                                             
                                                                                                                   Active standby                                                               
                                                                                                                   members may                                                                  
                                                                                                                   voluntarily                                                                  
                                                                                                                   train for points                                                             
                                                                                                                   without pay and                                                              
                                                                                                                   are eligible for                                                             
                                                                                                                   promotion.                                                                   

[[Page 569]]

                                                                                                                                                                                                
                                           D             Active status      0................  0................  Other active       .......  X        X        X        .......  X       X     
                                                          list.                                                    status members.                                                              
                                          ------------------------------------------------------------------------------------------------------------------------------------------------------
                                           L             Inactive status    0................  0................  Members            .......  X        X        X        .......  X       X     
                                                          list.                                                    transferred to                                                               
                                                                                                                   inactive status                                                              
                                                                                                                   list instead of                                                              
                                                                                                                   separation under                                                             
                                                                                                                   10 U.S.C. 1209,                                                              
                                                                                                                   chapter 61                                                                   
                                                                                                                   (reference (d)).                                                             
                                                                                                                   Inactive standby                                                             
                                                                                                                   members may not                                                              
                                                                                                                   train for points                                                             
                                                                                                                   with or without                                                              
                                                                                                                   pay and are not                                                              
                                                                                                                   eligible for                                                                 
                                                                                                                   promotion.                                                                   
                                           N             Inactive status    0................  0................  Other inactive     .......  X        X        X        .......  X       X     
                                                          list.                                                    status members.                                                              
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Retired                 V--retired.......  1             Drawing reserve    N/A..............  N/A..............  Reserve members    .......  X        X        X        .......  X       X     
 reserve.                                                 retired pay                                              who have                                                                     
                                                          under 10 U.S.C.                                          completed 20                                                                 
                                                          1331 (reference                                          qualifying years                                                             
                                                          (d)).                                                    creditable for                                                               
                                                                                                                   retired pay, are                                                             
                                                                                                                   60 years, or                                                                 
                                                                                                                   more, of age,                                                                
                                                                                                                   and are drawing                                                              
                                                                                                                   retired pay.                                                                 
                                           2             Not drawing        N/A..............  N/A..............  Reserve members    .......  X        X        X        .......  X       X     
                                                          retired pay, but                                         who have                                                                     
                                                          eligible at age                                          completed 20                                                                 
                                                          60, under                                                qualifying years                                                             
                                                          section 1331 of                                          creditable for                                                               
                                                          reference (d).                                           retired pay, but                                                             
                                                                                                                   are not yet 60                                                               
                                                                                                                   years of age, or                                                             
                                                                                                                   are age 60 and                                                               
                                                                                                                   have not applied                                                             
                                                                                                                   for pay.                                                                     
                                           3             Reserve members    N/A..............  N/A..............  Reserve members    .......  X        X        X        .......  X       X     
                                                          retired for                                              retired for                                                                  
                                                          physical                                                 physical                                                                     
                                                          disability.                                              disability under                                                             
                                                                                                                   sections 1201,                                                               
                                                                                                                   1202, 1204, or                                                               
                                                                                                                   1205 of                                                                      
                                                                                                                   reference (d).                                                               
                                                                                                                   Member who have                                                              
                                                                                                                   20 years of                                                                  
                                                                                                                   service                                                                      
                                                                                                                   creditable for                                                               
                                                                                                                   retired pay or                                                               
                                                                                                                   are more than 30-                                                            
                                                                                                                   percent disabled.                                                            

[[Page 570]]

                                                                                                                                                                                                
                        V--retired         4             Reserve members    N/A..............  N/A..............  Reserve members    .......  X        X        X        .......  X       X     
                         reserve.                         who have                                                 who have                                                                     
                                                          completed 20, or                                         completed 20, or                                                             
                                                          more, years of                                           more, years of                                                               
                                                          AD.                                                      AD service and                                                               
                                                                                                                   retired under 10                                                             
                                                                                                                   U.S.C. 3911,                                                                 
                                                                                                                   3914, 6323,                                                                  
                                                                                                                   6330, 8911, or                                                               
                                                                                                                   8913 (reference                                                              
                                                                                                                   (d)). Does not                                                               
                                                                                                                   include regular                                                              
                                                                                                                   Army and Air                                                                 
                                                                                                                   Force enlisted                                                               
                                                                                                                   personnel with                                                               
                                                                                                                   between 20 and                                                               
                                                                                                                   30 years of                                                                  
                                                                                                                   military                                                                     
                                                                                                                   service; and                                                                 
                                                                                                                   regular and                                                                  
                                                                                                                   reserve Navy and                                                             
                                                                                                                   Marine Corps                                                                 
                                                                                                                   enlisted                                                                     
                                                                                                                   personnel in the                                                             
                                                                                                                   fleet reserve                                                                
                                                                                                                   (Navy) and fleet                                                             
                                                                                                                   Marine Corps                                                                 
                                                                                                                   reserve with                                                                 
                                                                                                                   between 20 and                                                               
                                                                                                                   30 years of                                                                  
                                                                                                                   service.                                                                     
                                           5             Drawing reserve    N/A..............  N/A..............  Reserve personnel  .......  X        X        X        .......  X       X     
                                                          retired pay                                              drawing                                                                      
                                                          under other than                                         retirement pay                                                               
                                                          section 1331 of                                          based on                                                                     
                                                          reference (d),                                           retirement for                                                               
                                                          or other than                                            reasons other                                                                
                                                          reasons of                                               than age,                                                                    
                                                          physical                                                 service                                                                      
                                                          disability.                                              requirement or                                                               
                                                                                                                   physical                                                                     
                                                                                                                   disability, as                                                               
                                                                                                                   authorized by                                                                
                                                                                                                   the ASD(RA).                                                                 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 571]]



PART 103--ENLISTMENT, APPOINTMENT, AND ASSIGNMENT OF INDIVIDUALS IN RESERVE COMPONENTS--Table of Contents




Sec.
103.1  Purpose and applicability.
103.2  Policy.



Sec. 103.1  Purpose and applicability.

    This part provides standards, procedures, and priority guidelines 
for enlistment, assignment or appointment of individuals in units of the 
Reserve Components of the Military Departments.


(10 U.S.C. 510, 511; sec. 301, 80 Stat. 379, 5 U.S.C. 301)

[36 FR 22576, Nov. 25, 1971]



Sec. 103.2  Policy.

    (a) Physical and mental standards for male personnel enlisted in the 
basic enlistment pay grade will not be higher than those prescribed by 
the Military Selective Service Act of 1967, or DOD Directive 1145.1, 
``Qualitative Distribution of Military Manpower,'' September 13, 1967, 
\1\ which establish minimum standards for acceptability into the regular 
services. Higher physical and mental standards may be specified by the 
appropriate Secretary of a Military Department for initial enlistment in 
a grade higher than the basic enlistment pay grade or for enlistment in 
a program leading to a commission.
---------------------------------------------------------------------------

    \1\ Filed as part of original.
---------------------------------------------------------------------------

    (b) The appropriate Secretary shall, except as otherwise provided by 
law, prescribe physical, mental, moral, academic attainment, 
professional and age qualifications for appointment of reserve members 
of the Armed Forces of the United States.
    (c) The enlistment of individuals under the provisions of section 
511(a) or 511(d) of title 10 U.S. Code, and the assignment of applicants 
to units of the Ready Reserve shall normally be in accordance with the 
order of priorities listed below. Applicants in categories (1) through 
(6) may be enlisted without regard to their date of application. 
Nonprior service applicants in category (7) who are accepted on reserve 
unit enlistment waiting lists will be retained in their original 
priority. However, exceptions to these policies may be made when, in the 
best judgment of those responsible for the procurement of reserve 
personnel, an applicant's prior military service or significant civilian 
training or experience in the occupational skill concerned is considered 
to warrant it. In such cases, notation as to the basis of the exception 
shall be made in the individual's service record.
    (1) Members of the Selected Reserve who desire to reenlist.
    (2) Members of Selected Reserve units applying for transfer from 
another locality.
    (3) Members of the Selected Reserve who were relieved from 
assignment to units due to reorganization, inactivation, or relocation 
of their units.
    (4) Members of the Ready Reserve Pool.
    (5) Prior service applicants.
    (6) Nonprior service individuals who have not undergone random 
selection for induction (includes all qualified female nonprior service 
applicants), or who have undergone random selection for induction and 
have passed through their full year of vulnerability without induction.
    (7) Nonprior service individuals who have undergone random selection 
for induction but have not yet passed through their full year of 
vulnerability.
    (d) In conjunction with the policies in paragraph (c) of this 
section, the Secretaries of the Military Departments will require their 
Reserve Components to actively recruit qualified individuals of all 
races, creeds, and ethnic groups toward the end that all units shall 
generally reflect the character of the population in the unit's 
recruiting area.
    (e) Prior to enlisting a draft-liable individual in one of the 
Reserve Components, the applicant shall be required to sign a written 
statement to the effect that he has not received orders to report for 
induction, that any subsequent receipt of such orders will be reported 
to his unit commander, and that he understands he is subject to an 
induction order if issued before he enlists.

[[Page 572]]

    (1) An individual who enlists in a Reserve Component and who 
subsequently receives orders to report for induction, the issuing date 
of which precedes his date of enlistment, shall be discharged from his 
Reserve Component for the purpose of induction into the Armed Forces.
    (2) The discharge should be effected concurrently with the induction 
so as to continue the individual's military obligation consistent with 
Sec. 50.2(d) of this title.
    (3) The date of issuance of orders to report for induction shall be 
considered to be the date of mailing of such orders by appropriate 
authority in the Selective Service System.
    (f) Individual applicants for assignment or enlistment in the 
Reserve Components shall not be accepted unless there is reasonable 
assurance that they will be available and able to participate 
satisfactorily in the unit concerned. In this respect careful 
consideration shall be given to the geographical location, future plans, 
and possible conflicts with the civilian occupation of the individual 
applicant. Individuals who are engaged in or preparing for a skill 
listed in the Department of Labor ``List of Critical Occupations for 
Screening the Ready Reserve'' shall not be enlisted unless there is an 
overriding military necessity for their skill consistent with part 125 
of this title.
    (g) Reserve members who have enlisted under the provisions of 
section 511(d) of title 10, U.S.C., and who thereafter incur either a 
bona fide temporary, nonmilitary obligation requiring overseas residency 
outside the United States, or a bona fide, temporary, religious 
missionary obligation which would conflict with their required 
participation in reserve training, may, upon their request, be 
reenlisted under the provisions of section 511(a) of title 10, U.S.C. 
Requests under the provisions of this subsection, except those from 
members who incur a legitimate religious missionary obligation, will be 
approved by the Secretary of the Military Department concerned. Requests 
from members based on a religious missionary obligation may be approved 
by the local National Guard or Reserve Component Commander. Approval of 
all such requests are subject to the following requirements:
    (1) Certification of the obligation is made by the employer, 
sponsor, or recognized church body as appropriate.
    (2) Reserve members concerned have completed their initial period of 
active-duty-for-training.
    (3) The approving authority concerned is satisfied that the request 
is bona fide.
    (4) Reenlistment contracts for such individuals will include an 
agreement to serve for a period of time which will include the period of 
temporary, nonmilitary obligation (not to exceed 30 months) plus the 
remaining obligatory military service remaining under the original 
enlistment contract. Such reenlistment contracts will assure that each 
individual will serve a total of six (6) years of reserve service as 
required by law.
    (5) The individual reservists concerned will be carried as members 
of the inactive National Guard or the Ready Reserve Pool, as 
appropriate, during the period of nonmilitary obligation, and as such, 
will be subject to being involuntarily ordered to active duty as 
authorized by law (see paragraph IV.C.2 of DOD Directive 1215.13, 
``Unsatisfactory Performance of Ready Reserve Obligation,'' October 12, 
1970. \1\
---------------------------------------------------------------------------

    \1\ Filed as part of the original document. Copies available from 
the U.S. Naval Publications and Forms Center, 5801 Tabor Ave., 
Philadelphia, PA 19120, Attention: Code 300.


---------------------------------------------------------------------------
(10 U.S.C. 510, 511; sec. 301, 80 Stat. 379, 5 U.S.C. 301)

[36 FR 22576, Nov. 25, 1971]



PART 104--CIVILIAN EMPLOYMENT AND REEMPLOYMENT RIGHTS OF APPLICANTS FOR, AND SERVICE MEMBERS AND FORMER SERVICE MEMBERS OF THE UNIFORMED SERVICES--Table of Contents




Sec.
104.1  Purpose.
104.2  Applicability.
104.3  Definitions.
104.4  Policy.
104.5  Responsibilities.
104.6  Procedures.

[[Page 573]]


Appendix A to Part 104--Civilian Employment and Reemployment Rights, 
          Benefits and Obligations for Applicants for, and Service 
          Members and Former Service Members of the Uniformed Services
Appendix B to Part 104--Sample Employer Notification of Uniformed 
          Service

    Authority:  10 U.S.C. 1161.

    Source: 62 FR 3466, Jan. 23, 1998, unless otherwise noted.



Sec. 104.1   Purpose.

    This part:
    (a) Updates implementation policy, assigns responsibilities, and 
prescribes procedures for informing Service members who are covered by 
the provisions of 38 U.S.C chapter 43 and individuals who apply for 
uniformed service, of their civilian employment and reemployment rights, 
benefits and obligations.
    (b) Implements 38 U.S.C. chapter 43, which updated, codified, and 
strengthened the civilian employment and reemployment rights and 
benefits of Service members and individuals who apply for uniformed 
service, and specifies the obligations of Service members and applicants 
for uniformed service.



Sec. 104.2  Applicability.

    This part applies to the Office of the Secretary of Defense; the 
Military Departments, including the Coast Guard when it is not operating 
as a Military Service in the Department of the Navy by agreement with 
the Department of Transportation; the Chairman of the Joint Chiefs of 
Staff; and the Defense Agencies (referred to collectively in this part 
as ``the DoD Components''). The term ``Military Departments,'' as used 
in this part, refers to the Departments of the Army, Navy, and Air 
Force. The term ``Secretary concerned'' refers to the Secretaries of the 
Military Departments and the Secretary of Transportation with respect to 
the Coast Guard when it is not operating as a Service in the Department 
of the Navy. The term ``Military Services'' refers to the Army, the 
Navy, the Air Force, the Marine Corps, and the Coast Guard.



Sec. 104.3  Definitions.

    Critical mission. An operational mission that requires the skills or 
resources available in a Reserve component or components.
    Critical requirement. A requirement in which the incumbent possesses 
unique knowledge, extensive experience, and specialty skill training to 
successfully fulfill the duties or responsibilities in support of the 
mission, operation or exercise. Also, a requirement in which the 
incumbent must gain the necessary experience to qualify for key senior 
leadership positions within his or her Reserve component.
    Escalator position. This is established by the principle that the 
returning Service member is entitled to the position of civilian 
employment that he or she would have attained had he or she remained 
continuously employed by that civilian employer. This may be a position 
of greater or lesser responsibilities, to include a layoff status, when 
compared to the employees of the same seniority and status employed by 
the company.
    Impossible or unreasonable. For the purpose of determining when 
providing advance notice of uniformed service to an employer is 
impossible or unreasonable, the unavailability of an employer or 
employer representative to whom notification can be given, an order by 
competent military authority to report for uniformed service within 
forty-eight hours of notification, or other circumstances that the 
Office of the Assistant Secretary of Defense for Reserve Affairs may 
determine are impossible or unreasonable are sufficient justification 
for not providing advance notice of pending uniformed service to an 
employer.
    Military necessity. For the purpose of determining when providing 
advance notice of uniformed service is not required, a mission, 
operation, exercise or requirement that is classified, or a pending or 
ongoing mission, operation, exercise or requirement that may be 
compromised or otherwise adversely affected by public knowledge is 
sufficient justification for not providing advance notice to an 
employer.

[[Page 574]]

    Non-career service. The period of active uniformed service required 
to complete the initial uniformed service obligation; a period of active 
duty or full-time National Guard duty that is for a specified purpose 
and duration with no expressed or implied commitment for continued 
active duty; or participation in a Reserve component as a member of the 
Ready Reserve performing annual training, active duty for training or 
inactive duty training. Continuous or repeated active uniformed service 
or full-time National Guard duty that results in eligibility for a 
regular retirement from the Armed Forces is not considered non-career 
service.
    Officer. For determining those Service officials authorized to 
provide advance notice to a civilian employer of pending uniformed 
service by a Service member or an individual who has applied for 
uniformed service, an officer shall include all commissioned officers, 
warrant officers, and non-commissioned officers authorized by the 
Secretary concerned to act in this capacity.
    Uniformed service. Performance of duty on a voluntary or involuntary 
basis in the Army, the Navy, the Air Force, the Marine Corps or the 
Coast Guard, including their Reserve components, when the Service member 
is engaged in active duty, active duty for special work, active duty for 
training, initial active duty for training, inactive duty training, 
annual training or full-time National Guard duty, and, for purposes of 
this part, a period for which a person is absent from a position of 
employment for the purpose of an examination to determine the fitness of 
the person to perform such duty.



Sec. 104.4  Policy.

    It is DoD policy to support non-career service by taking appropriate 
actions to inform and assist uniformed Service members and former 
Service members who are covered by the provisions of 38 U.S.C. chapter 
43, and individuals who apply for uniformed service of their rights, 
benefits, and obligations under 38 U.S.C. Chapter 43. Such actions 
include:
    (a) Advising non-career Service members and individuals who apply 
for uniformed service of their employment and reemployment rights and 
benefits provided in 38 U.S.C. chapter 43, as implemented by this part, 
and the obligations they must meet to exercise those rights.
    (b) Providing assistance to Service members, former Service members 
and individuals who apply for uniformed service in exercising employment 
and reemployment rights and benefits.
    (c) Providing assistance to civilian employers of non-career Service 
members in addressing issues involving uniformed service as it relates 
to civilian employment or reemployment.
    (d) Considering requests from civilian employers of members of the 
National Guard and Reserve to adjust a Service member's scheduled 
absence from civilian employment because of uniformed service or make 
other accommodations to such requests, when it is reasonable to do so.
    (e) Documenting periods of uniformed service that are exempt from a 
Service member's cumulative 5-year absence from civilian employment to 
perform uniformed service as provided in 38 U.S.C. chapter 43 and 
implemented by this part.
    (f) Providing, at the Service member's request, necessary 
documentation concerning a period or periods of service, or providing a 
written statement that such documentation is not available, that will 
assist the Service member in establishing civilian reemployment rights, 
benefits and obligations.



Sec. 104.5  Responsibilities.

    (a) The Assistant Secretary of Defense for Reserve Affairs, under 
the Under Secretary of Defense for Personnel and Readiness, shall:
    (1) In conjunction with the Departments of Labor (DoL) and Veterans 
Affairs, the Office of Personnel Management (OPM), and other appropriate 
Departments and activities of the executive branch, determine actions 
necessary to establish procedures and provide information concerning 
civilian employment and reemployment rights, benefits and obligations.
    (2) Establish procedures and provide guidance to the Secretaries 
concerned

[[Page 575]]

about civilian employment and reemployment rights, benefits and 
obligations of Service members who are covered by the provisions of 38 
U.S.C. chapter 43 and individuals who apply for uniformed service as 
provided in 38 U.S.C. chapter 43. This responsibility shall be carried 
out in coordination with DoL, OPM, and the Federal Retirement Thrift 
Investment Board.
    (3) Monitor compliance with 38 U.S.C. chapter 43 and this part.
    (4) Publish in the Federal Register, DoD policies and procedures 
established to implement 38 U.S.C. chapter 43.
    (b) The Secretaries of the Military Departments and the Commandant 
of the Coast Guard shall establish procedures to:
    (1) Ensure compliance with this part.
    (2) Inform Service members who are covered by the provisions of 38 
U.S.C. chapter 43 and individuals who apply for uniformed service of the 
provisions of 38 U.S.C. chapter 43 as implemented by this part.
    (3) Provide available documentation, upon request from a Service 
member or former Service member, that can be used to establish 
reemployment rights of the individual.
    (4) Specify, as required, and document those periods of active duty 
that are exempt from the 5-year cumulative service limitation that a 
Service member may be absent from a position of civilian employment 
while retaining reemployment rights.
    (5) Provide assistance to Service members and former Service members 
who are covered by the provisions of 38 U.S.C. chapter 43, and 
individuals who apply for uniformed service in exercising employment and 
reemployment rights.
    (6) Provide assistance, as appropriate, to civilian employers of 
Service members who are covered by the provisions of 38 U.S.C. chapter 
43 and individuals who apply for uniformed service.
    (7) Cooperate with the DoL in discharging its responsibilities to 
assist persons with employment and reemployment rights and benefits.
    (8) Cooperate with OPM in carrying out its placement 
responsibilities under 38 U.S.C. chapter 43.



Sec. 104.6   Procedures.

    The Secretaries of the Military Departments and the Commandant of 
the Coast Guard shall:
    (a) Inform individuals who apply for uniformed service and members 
of a Reserve component who perform or participate on a voluntary or 
involuntary basis in active duty, active duty for special work, initial 
active duty for training, active duty for training, inactive duty 
training, annual training and full-time National Guard duty, of their 
employment and reemployment rights, benefits, and obligations as 
provided under 38 U.S.C. chapter 43 and described in Appendix A of this 
part. Other appropriate materials may be used to supplement the 
information contained in Appendix A of this part.
    (1) Persons who apply for uniformed service shall be advised that 
DoD strongly encourages applicants to provide advance notice in writing 
to their civilian employers of pending uniformed service or any absence 
for the purpose of an examination to determine the person's fitness to 
perform uniformed service. Providing written advance notice is 
preferable to verbal advance notice since it is easier to establish that 
this basic prerequisite to retaining reemployment rights was fulfilled. 
Regardless of the means of providing advance notice, whether verbal or 
written, it should be provided as early as practicable.
    (2) Annually and whenever called to duty for a contingency 
operation, advise Service members who are participating in a Reserve 
component of:
    (i) The requirement to provide advance written or verbal notice to 
their civilian employers for each period of military training, active 
and inactive duty, or full-time National Guard duty.
    (A) Reserve component members shall be advised that DoD strongly 
encourages that they provide advance notice to their civilian employers 
in writing for each period of pending uniformed service. Providing 
written advance notice is preferable to verbal advance notice since it 
easily establishes that this prerequisite to retaining reemployment 
rights was fulfilled.
    (B) Regardless of the means of providing advance notice, whether 
written or verbal, it should be provided as early

[[Page 576]]

as practicable. DoD strongly recommends that advance notice to civilian 
employers be provided at least 30 days prior to departure for uniformed 
service when it is feasible to do so.
    (C) The advance notice requirement can be met by providing the 
employer with a copy of the unit annual training schedule or preparing a 
standardized letter. The sample employer notification letter in Appendix 
B of this part may be used for this purpose.
    (ii) The 5-year cumulative limit on absences from their civilian 
employment due to uniformed service and exemptions to that limit.
    (iii) The requirements for reporting or submitting application to 
return to their position of civilian employment.
    (iv) Their general reemployment rights and benefits.
    (v) The option for continuing employer provided health care, if the 
employer provides such a benefit.
    (vi) The opportunity to use accrued leave in order to perform 
uniformed service.
    (vii) Who they may contact to obtain assistance with employment and 
reemployment questions and problems.
    (b) Inform Service members who are covered by the provisions of 38 
U.S.C. Chapter 43, upon completion of an extended period of active duty 
and before separation from active duty of their employment and 
reemployment rights, benefits, and obligations as provided under 38 
U.S.C. Chapter 43. This shall, as a minimum, include notification and 
reporting requirements for returning to employment with their civilian 
employer. While Appendix A of this part provides the necessary 
information to satisfy this requirement, other appropriate materials may 
be used to supplement this information.
    (c) Issue orders that span the entire period of service when 
ordering a member of the National Guard or Reserve to active duty for a 
mission or requirement. Order modifications shall be initiated, as 
required, to ensure continuous active duty should the period required to 
complete the mission or requirement change.
    (d) Document the length of a Service member's initial period of 
military service obligation performed on active duty.
    (e) Determine and certify in writing those additional training 
requirements not already exempt for the 5-year cumulative service limit 
which are necessary for the professional development, or skill training 
or retraining for members of the National Guard or Reserve. Once the 
Secretary concerned certifies those training requirements, performance 
of uniformed service to complete a certified training requirement is 
exempt from the 5-year cumulative service limit.
    (f) Determine those periods of active duty when a Service member is 
ordered to, or retained on, active duty (other than for training) under 
any provision of law because of a war or national emergency declared by 
the President or Congress. If the purpose of the order to, or retention 
on, active duty is for the direct or indirect support of the war or 
national emergency, then the orders of the Service member should be so 
annotated, since that period of service is exempt from the 5-year 
cumulative service limit established in 38 U.S.C. Chapter 43.
    (g) Determine those periods of active duty performed by a member of 
the National Guard or Reserve that are designated by the Secretary 
concerned as a critical mission or critical requirement, and for that 
reason are exempt form the 5-year cumulative service limit. The 
authority for determining what constitutes a critical mission or 
requirement shall not be delegated below the Assistant Secretary level 
or the Commandant of the Coast Guard. The designation of a critical 
requirement to gain the necessary experience to qualify for key senior 
leadership positions shall be used judiciously, and the necessary 
experience and projected key leadership positions fully documented. This 
authority shall not be used to grant exemptions to avoid the cumulative 
5-year service limit established by 38 U.S.C. Chapter 43 or to extend 
individuals in repeated statutory tours. The Assistant Secretary of 
Defense for Reserve Affairs shall be notified in writing of all 
occasions in which a Service member is granted more than one exemption 
for a critical requirement when the additional exemption(s) extend the 
Service member beyond the

[[Page 577]]

5-year cumulative service limit established in 38 U.S.C. Chapter 43.
    (h) When appropriate, ensure that orders to active duty or orders 
retaining members on active duty specify the statutory or Secretarial 
authority for those orders when such authority meets one or more of the 
exemptions from the 5-year cumulative service limit provided in 38 
U.S.C. Chapter 43. If circumstances arise that prevent placing this 
authority on the orders, the authority shall be included in a separation 
document and retained in the Service member's personnel file.
    (i) Ensure that appropriate documents verifying any period of 
service exempt from the 5-year cumulative service limit are place in the 
Service member's personnel record or other appropriate record.
    (j) Document those circumstances that prevent a Service member from 
providing advance notification of uniformed service to a civilian 
employer because of military necessity or when advance notification is 
otherwise impossible or unreasonable, as defined in Sec. 104.3.
    (k) Designate those officers, as defined in Sec. 104.3, who are 
authorized by the Secretary concerned to provide advance notification of 
service to a civilian employer on behalf of a Service member or 
applicant for uniformed service.
    (l) Provide documentation, upon request from a Service member or 
former Service member, that may be used to satisfy the Service member's 
entitlement to statutory reemployment rights and benefits. Appropriate 
documentation may include, as necessary:
    (1) The inclusive dates of the initial period of military service 
obligation performed on active duty.
    (2) Any period of service during which a Service member was required 
to serve because he or she was unable to obtain a release from active 
duty though no fault of the Service member.
    (3) The cumulative length of all periods of active duty performed.
    (4) The authority under which a Service member was ordered to active 
duty when such service was exempt from the 5-year cumulative service 
limit.
    (5) The date the Service member was last released from active duty, 
active duty for special work, initial active duty for training, active 
duty for training, inactive duty training, annual training or full-time 
National Guard duty. This documentation establishes the timeliness of 
reporting to, or submitting application to return to, a position of 
civilian employment.
    (6) Whether service requirements prevent providing a civilian 
employer with advance notification of pending service.
    (7) That the Service member's entitlement to reemployment benefits 
has not been terminated because of the character of service as provided 
in 38 U.S.C. 4304.
    (8) When appropriate, a statement that sufficient documentation does 
not exist.
    (m) Establish a central point of contact at a headquarters or 
regional command who can render assistance to active duty Service 
members and applicants for uniformed service about employment and 
reemployment rights, benefits and obligations.
    (n) Establish points of contact in each Reserve component 
headquarters or Reserve regional command, and each National Guard State 
headquarters who can render assistance to:
    (1) Members of the National Guard or Reserve about employment and 
reemployment rights, benefits and obligations.
    (2) Employers of National Guard and Reserve members about duty or 
training requirements arising from a member's uniformed service or 
service obligation.
    (o) A designated Reserve component representative shall consider, 
and accommodate when it does not conflict with military requirements, a 
request from a civilian employer of a National Guard and Reserve member 
to adjust a Service member's absence from civilian employment due to 
uniformed service when such service has an adverse impact on the 
employer. The representative may make arrangements other than adjusting 
the period of absence to accommodate such a request when it serves the 
best interest of the military and is reasonable to do so.

[[Page 578]]

  Appendix A to Part 104--Civilian Employment and Reemployment Rights, 
  Benefits and Obligations for Applicants for, and Service Members and 
            Former Service Members of the Uniformed Services

                          A. Scope of Coverage

    1. The Uniformed Services Employment and Reemployment Rights Act 
(USERRA) which is codified in 38 U.S.C. Chapter 43 provides protection 
to anyone absent from a position of civilian employment because of 
uniformed service if:
    a. Advance written or verbal notice was given to the civilian 
employer.
    (1) Advance notice is not required if precluded by military 
necessity, or is otherwise unreasonable or impossible.
    (2) DoD strongly encourages Service members and or applicants for 
service to provide advance notice to their civilian employer in writing 
for each period of pending uniformed service. Providing written advance 
notice is preferable to verbal advance notice since it easily 
establishes that this prerequisite to retaining reemployment rights was 
fulfilled. Regardless of the means of providing advance notice, whether 
written or verbal, it should be provided as early as practicable. Also, 
DoD strongly recommends that Reserve component members provide advance 
notice to their civilian employers at least 30 days in advance when it 
is feasible to do so. The advance notice requirement can be met by 
providing the employer with a copy of the unit annual training schedule 
or preparing a standardized letter. The sample employer notification 
letter in Appendix B of this part may be used for this purpose;
    b. The cumulative length of absences does not exceed 5 years;
    c. The individual reports to, or submits an application for 
reemployment, within the specified period based on duration of services 
as described in section D of this Appendix; and,
    d. The person's character of service was not disqualifying as 
described in paragraphs A.2.d. and e. of this appendix.
    2. A civilian employer is not required to reemploy a person if:
    a. The civilian employment was for a brief, non-recurrent period and 
there was no reasonable expectation that the employment would continue 
indefinitely or for a significant period.
    b. The employer's circumstances have so changed as to make 
reemployment impossible or unreasonable.
    c. The reemployment imposes an undue hardship on the employer in the 
case of an individual who:
    (1) Has incurred a service connected disability; or,
    (2) Is not qualified for the escalator position or the position last 
held, and cannot become qualified for any other position of lesser 
status and pay after a reasonable effort by the employer to qualify the 
person for such positions.
    d. The Service member or former Service member was separated from a 
uniformed service with a dishonorable or bad conduct discharge, or 
separated from a uniformed service under other than honorable 
conditions.
    e. An officer dismissed from any Armed Force or dropped from the 
rolls of any Armed Force as prescribed under 10 U.S.C. 1161.
    f. The cumulative length of service exceeds five years and no 
portion of the cumulative five years of uniformed service falls within 
the exceptions described in section C. of this Appendix.
    g. An employer asserting that he or she is not required to reemploy 
an individual because the employment was for a brief, non-recurrent 
period, or reemployment is impossible or unreasonable, or reemployment 
imposes an undue hardship on the employer, that employer has the burden 
of proving his or her assertion.
    3. Entitlement to protection under 38 U.S.C. Chapter 43 does not 
depend on the timing, frequency, and duration of training or uniformed 
service.

       B. Prohibition Against Discrimination and Acts of Reprisal

    1. A person who is a member of, applies to be a member of, has 
performed, applies to perform, or has an obligation to perform service 
in a uniformed service shall not be denied initial employment, 
reemployment, retention in employment, promotion, or any employment 
benefit by an employer on the basis of that membership, an application 
for membership, performance of service, or an obligation for service in 
the uniformed services.
    2. A person, including a non-Service member, shall not be subject to 
employment discrimination or any adverse employment action because he or 
she has taken an action to enforce a protection afforded a Service 
member, has testified or made a statement in or in connection with any 
proceeding concerning employment and reemployment rights of a service 
member, has assisted or participated in an investigation, or has 
otherwise exercised any right provided by 38 U.S.C. Chapter 43.
    3. An employer shall be considered to have engaged in an act of 
discrimination if an individual's membership, application for 
membership, service, application for service, or obligation for service 
in the uniformed services is a motivating factor in the employer's 
action, unless the employer can prove that

[[Page 579]]

the action would have been taken in the absence of such membership, 
application for membership, performance of service, application for 
service or obligation.

       C. Exceptions to the Maximum Period of Service for Coverage

    In order to retain reemployment rights and benefits provided by 38 
U.S.C. Chapter 43, the cumulative length of absences from the same 
employer cannot exceed 5 years. Not counted toward this limit is:
    1. Service beyond 5 years if required to complete an initial service 
obligation;
    2. Service during which an individual was unable to obtain release 
orders before the expiration of the 5-year cumulative service limit 
through no fault of his or her own;
    3. Inactive duty training; annual training; ordered to active duty 
for unsatisfactory participation; active duty by National Guardsmen for 
encampments, maneuvers, field operations or coastal defense; or to 
fulfill additional training requirements, as determined by the Secretary 
concerned, for professional skill development, or to complete skill 
training or retraining;
    4. Involuntary order or call to active duty, or retention on active 
duty;
    5. Ordered to or retained on active duty during a war or national 
emergency declared by the President or Congress;
    6. Ordered to active duty in support of an operational mission for 
which personnel have been involuntarily called to active duty;
    7. Performing service in support of a critical mission or 
requirement, as determined by the Secretary concerned;
    8. Performing service in the National Guard when ordered to active 
duty by the President to suppress an insurrection or rebellion, repel an 
invasion, or execute laws of the United States; and,
    9. Voluntary recall to active duty of retired regular Coast Guard 
officers or retired enlisted Coast Guard members.

                    D. Applications for Reemployment

    1. For service of 30 days or less, or for an absence for an 
examination to determine the individual's fitness to perform uniformed 
service, the Service member or applicant must report to work not later 
than the beginning of the first full regularly scheduled work period on 
the first full calendar day following the completion of service or the 
examination, after allowing for an eight hour rest period following safe 
transportation to his or her residence.
    2. For service of 31 days or more but less that 181 days, the 
Service member must submit an application for reemployment not later 
than 14 days after completion of service, or by the next full calendar 
day when submitting an application within the 14 day limit was 
impossible or unreasonable through no fault of the Service member.
    3. For service of 181 days or more, the Service member must submit 
an application for reemployment not later than 90 days after the 
completion of service.
    4. If hospitalized or convalescing from an illness or injury 
incurred or aggravated during service, the Service member must, at the 
end of the period necessary for recovery, follow the same procedures, 
based on length of service, as described in sections D.1. through D.3. 
of this appendix. The period of hospitalization or convalescence may not 
normally exceed 2 years.
    5. Anyone who fails to report or apply for reemployment within the 
specified period shall not automatically forfeit entitlement to 
reemployment rights and benefits, but is subject to the rules of 
conduct, established policies, general practices of the employer 
pertaining to explanations and discipline because of an absence from 
scheduled work.

                      E. Documentation Upon Return

    1. If service is for 31 days or more, a Service member must provide 
documentation, upon request from the employer, that establishes:
    a. He or she made application to return to work within the 
prescribed time period;
    b. He or she has not exceeded the 5-year cumulative service limit; 
and
    c. His or her reemployment rights were not terminated because of 
character of service as described in paragraphs A.2.d. and e. of this 
appendix.
    2. Failure to provide documentation cannot serve as a basis for 
denying reemployment to the Service member, former Service member, or 
applicant if documentation does not exist or is not readily available at 
the time of the employer's request. However, if after reemployment, 
documentation becomes available that establishes that the Service member 
or former Service member does not meet one or more of the requirements 
contained in section E.1. of this appendix, the employer may immediately 
terminate the employment.

             F. Position To Which Entitled Upon Reemployment

    1. Reemployment position for service of 90 days or less:
    a. The position the person would have attained if continuously 
employed (the ``escalator'' position) and if qualified to perform the 
duties; or,
    b. The position in which the person was employed in when he or she 
departed for uniformed service, but only if the person is not qualified 
to perform the duties of the escalator position, despite the employer's 
reasonable efforts to qualify the person for the escalator position.

[[Page 580]]

    2. Reemployment position for service of 91 days or more:
    a. The escalator position, or a position of like seniority, status 
and pay, the duties of which the person is qualified to perform; or,
    b. The position in which the person was employed in when he or she 
departed for uniformed service or a position of like seniority, status 
and pay, the duties of which the person is qualified to perform, but 
only if the person is not qualified to perform the duties of the 
escalator position after the employer has made a reasonable effort to 
qualify the person for the escalator position.
    3. If a person cannot become qualified, after reasonable efforts by 
the employer to qualify the person, for either the escalator position or 
the position formerly occupied by the employee as provided in sections 
F.1. and F.2. of this appendix, for any reason (other than disability), 
the person must be employed in any other position of lesser status and 
pay that the person is qualified to perform, with full seniority.

                G. Position To Which Entitled if Disabled

    If a person who is disabled because of service cannot (after 
reasonable efforts by the employer to accommodate the disability) be 
employed in the escalator position, he or she must be reemployed:
    1. In any other position that is equivalent to the escalator 
position in terms of seniority, status, and pay that the person is 
qualified or can become qualified to perform with reasonable efforts by 
the employer; or,
    2. In a position, consistent with the person's disability, that is 
the nearest approximation to the position in terms of seniority, status, 
and pay to the escalator or equivalent position.

                H. Reemployment by the Federal Government

    1. A person who was employed by a Federal Executive Agency when he 
or she departed for uniformed service must be reemployed using the same 
order of priorities as prescribed in sections F. and G. of this appendix 
as appropriate. If the Director of OPM determines that the Federal 
Executive Agency that employed the person no longer exists and the 
functions have not been transferred to another Federal Executive Agency, 
or it is impossible or unreasonable for the agency to reemploy the 
person, the Director of OPM shall identify a position of like seniority, 
status, and pay at another Federal Executive Agency that satisfies the 
reemployment criteria established for private sector employers, sections 
F. and G. of this appendix, and for which the person is qualified and 
ensure that the person is offered such position.
    2. If a person was employed by the Judicial Branch or the 
Legislative Branch of the Federal Government when he or she departed for 
uniformed service, and the employer determines that it is impossible or 
unreasonable to reemploy the person, the Director of OPM shall, upon 
application by the person, ensure that an offer of employment in a 
Federal Executive Agency is made.
    3. If the Adjutant General of a State determines that it is 
impossible or unreasonable to reemploy a person who was employed as a 
National Guard technician, the Director of OPM shall, upon application 
by the person, ensure that an offer of employment in a Federal Executive 
Agency is made.

               I. Reemployment by Certain Federal Agencies

    1. The heads of the Federal Bureau of Investigation, the Central 
Intelligence Agency, the Defense Intelligence Agency, the National 
Imagery and Mapping Agency, the National Security Agency, and, as 
determined by the President, any Executive Agency or unit thereof, the 
principal function of which is to conduct foreign intelligence or 
counterintelligence activities, shall prescribe procedures for 
reemployment rights for their agency that are similar to those 
prescribed for private and other Federal agencies.
    2. If an appropriate officer of an agency referred to in subsection 
I.1. of this appendix determines that reemployment of a person who was 
an employee of that agency when he or she departed for uniformed service 
is impossible or unreasonable, the agency shall notify the person and 
the Director of OPM. The Director of OPM shall, upon application by that 
person, ensure that the person is offered employment in a position in a 
Federal Executive Agency.

                     J. General Rights and Benefits

    1. A person who is reemployed under 38 U.S.C. Chapter 43 is entitled 
to the seniority, and other rights and benefits determined by seniority 
that the person had upon commencing uniformed service, and any 
additional seniority, and rights and benefits he or she would have 
attained if continuously employed.
    2. A person who is absent by reason of uniformed service shall be 
deemed to be on furlough or leave of absence from his or her civilian 
employer and is entitled to such other rights and benefits not 
determined by seniority as generally provided by the employer to 
employees on furlough or leave of absence having similar seniority, 
status and pay who are also on furlough or leave of absence, as provided 
under a contract, policy, agreement, practice or plan in effect during 
the Service member's absence because of uniformed service.

[[Page 581]]

    3. The individual may be required to pay the employee cost, if any, 
of any funded benefit continued to the same extent other employees on 
furlough or leave of absence are required to pay.

                     K. Loss of Rights and Benefits

    If, after being advised by his or her employer of the specific 
rights and benefits to be lost, a Service member, former Service member 
or applicant of uniformed service knowingly provided written notice of 
intent not to seek reemployment after completion of uniformed service, 
he or she is no longer entitled to any non-seniority based rights and 
benefits. This includes all non-seniority based rights and benefits 
provided under any contract, plan, agreement, or policy in effect at the 
time of entry into uniformed service or established while performing 
such service, and are generally provided by the employer to employees 
having similar seniority, status and pay who are on furlough or leave of 
absence.

                           L. Retention Rights

    A person who is reemployed following uniformed service cannot be 
discharged from employment, except for cause:
    1. Within 1 year after the date of reemployment if that person's 
service was 181 days or more; or,
    2. Within 180 days after the date of reemployment if such service 
was 31 days or more but less than 181 days.

                            M. Accrued Leave

    During any period of uniformed service, a person may, upon request, 
use any vacation, annual leave, or similar leave with pay accrued before 
the commencement of that period of service.

                             N. Health Plans

    An employer who provides employee health plan coverage, including 
group health plans, must allow the Service member to elect to continue 
personal coverage, and coverage for his or her dependents under the 
following circumstances:
    1. The maximum period of coverage of a person and the person's 
dependents under such an election shall be the lesser of:
    a. The 18 month period beginning on the date on which the person's 
absence begins; or
    b. The day after the date on which the person was required to apply 
for or return to a position or employment as specified in section D. of 
this appendix, and fails to do so.
    2. A person who elects to continue health plan coverage may be 
required to pay up to 102 percent of the full premium under the plan, 
except a person on active duty for 30 days or less cannot be required to 
pay more than the employee's share, if any, for the coverage.
    3. An exclusion or waiting period may not be imposed in connection 
with the reinstatement of coverage upon reemployment if one would not 
have been imposed had coverage not been terminated because of service. 
However, an exclusion or waiting period may be imposed for coverage of 
any illness or injury determined by the Secretary of Veterans Affairs to 
have been incurred in, or aggravated during, the performance of 
uniformed service.

                    O. Employee Pension Benefit Plans

    1. This section applies to individuals whose pension benefits are 
not provided by the Federal Employees' Retirement System (FERS) or the 
Civil Service Retirement System (CSRS), or a right provided under any 
Federal or State law governing pension benefits for governmental 
employees.
    2. A person reemployed after uniformed service shall be treated as 
if no break in service occurred with the employer(s) maintaining the 
employee's pension benefit plan. Each period of uniformed service, upon 
reemployment, shall be deemed to constitute service with the employer(s) 
for the purpose of determining the nonforfeitability of accrued benefits 
and accrual of benefits.
    3. An employer reemploying a Service member or former Service member 
under 38 U.S.C. Chapter 43 is liable to the plan for funding any 
obligation attributable to the employer of the employee's pension 
benefit plan that would have been paid to the plan on behalf of that 
employee but for his or her absence during a period of uniformed 
service.
    4. Upon reemployment, a person has three times the period of 
military service, but not to exceed five years after reemployment, 
within which to contribute the amount he or she would have contributed 
to the pension benefit plan if he or she had not been absent for 
uniformed service. He or she is entitled to accrued benefits of the 
pension plan that are contingent on the making of, or are derived from, 
employee contributions or elective deferrals only to the extent the 
person makes payment to the plan.

             P. Federal Employees' Retirement System (FERS)

    1. Federal employees enrolled in FERS who are reemployed with the 
Government are allowed to make up contributions to the Thrift Savings 
Fund over a period specified by the employee. However, the makeup period 
may not be shorter than two times nor longer than four times the period 
of absence for uniformed service.
    2. Employees covered by the FERS are entitled to have contributions 
made to the Thrift Savings Fund on their behalf by the employing agency 
for their period of absence in an amount equal to one percent of the 
employee's basic pay. If an employee covered by

[[Page 582]]

FERS makes contributions, the employing agency must make matching 
contributions on the employee's behalf.
    3. The employee shall be credited with a period of civilian service 
equal to the period of uniformed service, and the employee may elect, 
for certain purposes, to have his or her separation treated as if it had 
never occurred.
    4. This benefit applies to any employee whose release from uniformed 
service, discharge from hospitalization, or other similar event make him 
or her eligible to seek reemployment under 38 U.S.C. Chapter 43 on or 
after August 2, 1990.
    5. Additional information about Thrift Saving Plan (TSP) benefits is 
available in TSP Bulletins 95-13 and 95-20. A fact sheet is included in 
TSP Bulletin 95-20 which describes benefits and procedures for eligible 
employees. Eligible employees should contact their personnel office for 
information and assistance.

                Q. Civil Service Retirement System (CSRS)

    1. Employees covered by CSRS may make up contributions to the TSP, 
as in section P.1. of this appendix. However, no employer contributions 
are made to the TSP account of CSRS employees.
    2. This benefit applies to any employee whose release from uniformed 
service, discharge from hospitalization, or other similar event makes 
him or her eligible to seek reemployment under 38 U.S.C. Chapter 43 on 
or after August 2, 1990.
    3. Additional information about TSP benefits is available in TSP 
Bulletins 95-13 and 95-20. A fact sheet is included in TSP Bulletin 95-
20 which describes benefits and procedures for eligible employees. 
Eligible employees should contact their personnel office for information 
and assistance.

                      R. Information and Assistance

    Information and informal assistance concerning civilian employment 
and reemployment is available through the National Committee for 
Employer Support of the Guard and Reserve (NCESGR). NCESGR 
representatives can be contacted by calling 1-800-336-4590.

                    S. Assistance in Asserting Claims

    1. A person may file a complaint with the Secretary of Labor if an 
employer, including any Federal Executive Agency or OPM, has failed or 
refused, or is about to fail or refuse, to comply with employment or 
reemployment rights and benefits. The complaint must be in writing, and 
include the name and address of the employer, and a summary of the 
allegation(s).
    2. The Secretary of Labor shall investigate each complaint and, if 
it is determined that the allegation(s) occurred, make reasonable 
efforts to ensure compliance. If these efforts are unsuccessful, the 
Secretary of Labor shall notify the complainant of the results and 
advise the complainant of his or her entitlement to pursue enforcement.
    3. The Secretary of Labor shall, upon request, provide technical 
assistance to a claimant and, when appropriate, to the claimant's 
employer.

                             T. Enforcement

    1. State or Private Employers.
    a. A person may request that the Secretary of Labor refer a 
complaint to the Department of Justice. If the Department of Justice is 
reasonably satisfied that the person is entitled to the rights or 
benefits sought, the Department of Justice may appear on behalf of, and 
act as attorney for, the complainant, and commence an action for 
appropriate relief, or the individual may commence an action on his or 
her own behalf in the appropriate Federal district court.
    b. The district court hearing the complaint can require the employer 
to:
    (1) Comply with the law;
    (2) Compensate the person for any loss of wages or benefits 
suffered; and
    (3) If the court determines that the employer willfully failed to 
comply with the law, pay the person an amount equal to the amount of 
lost wages or benefits as liquidated damages.
    c. A person may file a private suit against an employer without the 
Secretary of Labor's assistance if he or she:
    (1) Has chosen not to seek the Secretary's assistance;
    (2) Has chosen not to request that the Secretary refer the complaint 
to the Department of Justice; or
    (3) Has refused the Department of Justice's representation of his or 
her complaint.
    d. No fees or court costs shall be charged or taxed against any 
person filing a claim. The court may award the person who prevails 
reasonable attorney fees, expert witness fees, and other litigation 
expenses.
    2. Federal Government as the Employer.
    a. The same general enforcement procedures established for private 
employers are applied to Federal Executive Agencies as an employer; 
however, if unable to resolve the complaint, the Secretary of Labor 
shall refer the complaint to the Office of Special Counsel, which shall 
represent the individual in a hearing before the Merit Systems 
Protection Board if reasonably satisfied that the individual is entitled 
to the rights and benefits sought. The claimant also has the option of 
directly filing a complaint with the Merit Systems Protection Board on 
his or her own behalf.
    b. A person who is adversely affected or aggrieved by a final order 
or decision of the

[[Page 583]]

Merit Systems Protection Board may petition the United States Court of 
Appeals for the Federal Circuit to review the final order or decision.
    3. Federal Intelligence Agency as the Employer. An individual 
employed by a Federal Intelligence Agency listed in subparagraph I.1. of 
this appendix, may submit a claim to the inspector general of the 
agency.

   Appendix B to Part 104--Sample Employer Notification of Uniformed 
                                 Service

    This is to inform you that (insert applicant or Service member's 
name) must report for military training or duty on (insert date). My 
last period of work will be on (insert date), which will allow me 
sufficient time to report for military duty. I will be absent from my 
position of civilian employment for approximately (enter expected 
duration of duty as specified on your orders, and include the applicable 
period you have to return or submit notification of your return to work) 
while performing military training or duty unless extended by competent 
military authority or delayed by circumstances beyond my control. I 
otherwise expect to return to work on (insert date).

 _______________________________________________________________________
Signature and date

 _______________________________________________________________________
Employer acknowledgment and date



PART 105--EMPLOYMENT AND VOLUNTEER WORK OF SPOUSES OF MILITARY PERSONNEL--Table of Contents




Sec.
105.1  Purpose.
105.2  Applicability.
105.3  Definitions.
105.4  Policy.
105.5  Responsibilities.
105.6  Effective date and implementation.

    Authority: 10 U.S.C. 113 note.

    Source: 53 FR 15205, Apr. 28, 1988, unless otherwise noted.



Sec. 105.1  Purpose.

    This part implements Pub. L. 100-180 and reissues Secretary of 
Defense Memorandum for Secretaries of the Military Departments, 
``Employment of Spouses of Members of the Armed Forces,'' October 22, 
1987 and Secretary of Defense Memorandum for Secretaries of the Military 
Departments, ``Employment of Spouses of Members of the Armed Forces,'' 
December 30, 1987.



Sec. 105.2  Applicability.

    This part applies to the Office of the Secretary of Defense (OSD), 
the Military Departments (including their National Guard and Reserve 
components), the Organization of the Joint Chiefs of Staff (OJCS), the 
Unified and Specified Commands, the Defense Agencies, and the DoD Field 
Activities (hereafter referred to as ``DoD Components'').



Sec. 105.3  Definitions.

    DoD official. Any commander, supervisor, or other military or 
civilian official of a DoD Component.
    Marital status. Married, single, divorced, widowed, or separated.
    Military Services. The Army, Navy, Air Force, Marine Corps, and 
Coast Guard (when operating as a part of the Navy).
    Spouse. The husband or wife of a military member, if such spouse is 
not also a military member.



Sec. 105.4  Policy.

    (a) No DoD official shall, directly or indirectly, impede or 
otherwise interfere with the right of a spouse of a military member to 
pursue and hold a job, attend school, or perform volunteer services on 
or off a military installation. Moreover, no DoD official shall use the 
preferences or requirements of a DoD Component to influence, or attempt 
to influence, the employment, educational, or volunteer service 
decisions of a spouse. Neither such decision of a spouse, nor the 
marital status of the member, shall affect, favorably or adversely, the 
performance appraisals or assignment and promotion opportunities of the 
member, subject to the clarification in paragraph (b)(2) of this 
section.
    (b) In furtherance of this policy. (1) In discharging their 
responsibilities, members of military promotion, continuation, and 
similar personnel selection boards are prohibited from considering the 
marital status of a military member, or the employment, educational, or 
volunteer service activities of a member's spouse.
    (2) Personnel decisions, including those related to the assignments 
of military members, shall not be affected, favorably or adversely, by 
the employment, educational, or volunteer

[[Page 584]]

service activities of a member's spouse, or solely by reason of a 
member's marital status, subject to the following clarification:
    (i) When necessary to ameliorate the personal hardship of a member 
or spouse upon the request of the member concerned, such as when a 
family member requires specialized medical treatment, educational 
provisions under DoD Instruction 1342.12 \1\ and Pub. L. 94-142, or 
similar personal preference accommodations.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, Attn: Code 1052, 5801 Tabor Avenue, 
Philadelphia, PA 19120.
---------------------------------------------------------------------------

    (ii) To facilitate the assignment of dual-career military married 
couples to the same geographic area.
    (iii) When otherwise required by law, such as instances in which a 
prohibited conflict of interest may exist between the official duties of 
a military member and the employment of the member's spouse.
    (iv) When the Assistant Secretary of Defense (Force Management and 
Personnel), with the concurrence of the General Counsel, determines, on 
a case-by-case basis, for reasons of national security, that marital 
status is an essential assignment qualification for particular military 
billets or positions.
    (3) Performance appraisals on members of the Military Services, 
including officer and enlisted efficiency or fitness reports, shall not 
contain any information regarding the employment, educational, or 
volunteer service activities of the member's spouse, or reflect 
favorably or adversely on the member based solely on the member's 
martial status.



Sec. 105.5  Responsibilities.

    (a) The Secretaries of the Military Departments and the Heads of 
other DoD Components shall ensure compliance with this part.
    (b) The Secretaries of the Military Departments shall issue 
regulations, enforceable under the Uniform Code of Military Justice 
(UCMJ), and appropriate regulations or other guidance applicable to 
civilian personnel, implementing this part.
    (c) The Assistant Secretary of Defense (Force Management and 
Personnel) (ASD(FM&P)) shall monitor compliance with this part.



Sec. 105.6  Effective date and implementation.

    This part is effective February 10, 1988. The Secretaries of the 
Military Departments shall forward two copies of implementing documents 
to the Assistant Secretary of Defense (Force Management and Personnel) 
within 60 days.



PART 107--PERSONAL SERVICES AUTHORITY FOR DIRECT HEALTH CARE PROVIDERS--Table of Contents




Sec.
107.1  Purpose.
107.2  Applicability and scope.
107.3  Definitions.
107.4  Policy.
107.5  Procedures.
107.6  Responsibilities.

Enclosure 1--Table of Authorized Compensation Rates

    Authority: 10 U.S.C. 1091; Federal Acquisition Regulation (FAR), 
part 37.

    Source: 50 FR 11693, Mar. 25, 1985, unless otherwise noted.



Sec. 107.1  Purpose.

    This part establishes policy under 10 U.S.C. 1091, ``Contracts For 
Direct Health Care Providers,'' and assigns responsibility for 
implementing the authority for personal services contracts for direct 
health care providers.



Sec. 107.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense 
(OSD) and the Military Departments.
    (b) It applies only to personal services contracts awarded under 10 
U.S.C. 1091 for direct health care providers.



Sec. 107.3  Definitions.

    (a) Personal Services Contract. A contract that, by its express 
terms or as administered, makes the contractor personnel appear, in 
effect, to be government employees.
    (b) Direct Health Care Providers. Health services personnel who 
participate in clinical patient care and services. This does not include 
personnel

[[Page 585]]

whose duties are primarily administrative or clerical, nor personnel who 
provide maintenance or security services.



Sec. 107.4  Policy.

    (a) It is the policy of the Department of Defense that when in-house 
sources are insufficient to support the medical mission of the Military 
Departments, personal services contracts under 10 U.S.C. 1091 may be 
executed.
    (b) It is the purpose of personal services contracts to facilitate 
mission accomplishment, maximize beneficiary access to military MTFs, 
maintain readiness capability, reduce use of the Civilian Health and 
Medical Program of the Uniformed Services (CHAMPUS), and enhance quality 
of care by promoting the continuity of the patient/provider 
relationship.
    (c) Personal services contractors shall be subject to the same 
quality assurance, credentialing processes, and other standards as those 
required of military health care providers. In addition, providers, 
other than para-professionals, must be licensed in accordance with State 
or host country requirements to perform the contract services.
    (d) In establishing lines of authority and accountability, DoD 
supervisors may direct the activities of personal services contractors 
on the same basis as DoD employees. However, the rights, benefits, and 
compensation of personal services contractors shall be determined solely 
in accordance with the personal service contract.
    (e) Requests for personal services contracts contemplating 
reimbursement at the maximum rate of basic pay and allowances under 10 
U.S.C. 1091 shall be approved at the major command level. The 0-6 grade 
shall be used sparingly and subsequently will be subject to review.



Sec. 107.5  Procedures.

    (a) Each contract under 10 U.S.C. 1091 with an individual or with an 
entity, such as a professional corporation or partnership, for the 
personal services of an individual must contain language specifically 
acknowledging the individual as a personal services contractor whose 
performance is subject to supervision and direction by designated 
officials of the Department of Defense.
    (b) The appearance of an employer-employee relationship created by 
the DoD supervision of a personal services contractor will normally 
support a limited recognition of the contractor as equal in status to a 
DoD employee in disposing of personal injury claims arising out of the 
contractor's performance. Personal injury claims alleging negligence by 
the contractor within the scope of his or her contract performance, 
therefore, will be processed as claims alleging negligence by DoD 
military or civil service personnel.
    (c) Compensation for personal services contractors under 10 U.S.C. 
1091 shall be within the limits established in the Table of Authorized 
Compensation Rates (see enclosure 1). Prorated compensation based upon 
hourly, daily, or weekly rates may be awarded when a contractor's 
services are not required on a full-time basis. In all cases, however, a 
contractor may be compensated only for periods of time actually devoted 
to the delivery of services required by the contract.
    (d) Contracts for personal services entered into shall be awarded 
and administered pursuant to the provisions of the Federal Acquisition 
Regulation (FAR), part 37 and DoD and departmental supplementary 
contracting provisions.



Sec. 107.6  Responsibilities.

    (a) The Military Departments shall be responsible for the management 
of the direct health care provider contracting program, ensuring that 
effective means of obtaining adequate quality care is achieved in 
compliance with the FAR, part 37. The portion of the Military Department 
regulations ensuring that compensation provided for a particular type of 
service is based on objective criteria and is not susceptible to 
individual favoritism shall be stressed.
    (b) The Office of the Assistant Secretary of Defense (Health 
Affairs) (OASD(HA)) shall be responsible for monitoring the personal 
services contracting program.

[[Page 586]]

           Enclosure 1--Table of Authorized Compensation Rates

                                                                        
------------------------------------------------------------------------
                                         Compensation rate not to exceed
                                        --------------------------------
       Occupation/specialty group          Pay                          
                                          grade      Years of service   
------------------------------------------------------------------------
I. Physicians and dentists.............     0-6  Over 26.               
II. Other individuals, including nurse      0-5  Over 20 but less than  
 practitioners, nurse anesthetists, and           22.                   
 nurse midwives, but excluding                                          
 paraprofessionals.                                                     
III. All registered nurses, except          0-4  Over 16 but less than  
 those who are included in Group II.              18.                   
IV. Paraprofessionals..................     0-3  Over 6 but less than 8.
------------------------------------------------------------------------



PART 110--STANDARDIZED RATES OF SUBSISTENCE ALLOWANCE AND COMMUTATION INSTEAD OF UNIFORMS FOR MEMBERS OF THE SENIOR RESERVE OFFICERS' TRAINING CORPS--Table of Contents




Sec.
110.1  Reissuance and purpose.
110.2  Applicability.
110.3  Policy.
110.4  Responsibilities.
110.5  Procedures.
110.6  Information requirement.

Appendix A to Part 110--Climatic Zones Used to Determine Rates of 
          Commutation Allowance
Attachment to Appendix A to Part 110--Climatic Zones Used to Determine 
          Rates of Commutation Allowance (Formula)
Appendix B to Part 110--Formula for ROTC Commutation Rates
Appendix C to Part 110--Application of Basic Course Formula (Male and 
          Female Members) (Sample)
Appendix D to Part 110--Application of Advanced Course Formula (Male and 
          Female Members) (Sample)
Appendix E to Part 110--Application of 4-Week Summer Field Training 
          Formula (Sample)

    Authority: 10 U.S.C. 2101-2111, 37 U.S.C. 209, 50 App. U.S.C. 
456(a).


    Source: 51 FR 26886, July 28, 1986, unless otherwise noted.



Sec. 110.1  Reissuance and purpose.

    This part reissues 32 CFR part 110 implementing Pub. L. 88-647, 92-
171, and 98-94 and updates policy, assigns responsibilities, and 
prescribes procedures for determining commutation rates for Reserve 
Officers' Training Corps (ROTC) detachments offered commutation funds 
instead of uniforms.



Sec. 110.2  Applicability.

    This part applies to the Office of the Secretary of Defense (OSD), 
the Military Departments, and the Defense Logistics Agency (DLA) 
(hereafter referred to collectively as ``DoD Components''). The term 
``Military Services,'' as used herein, refers to the Army, Navy, Air 
Force, and Marine Corps.



Sec. 110.3  Policy.

    It is DoD policy to provide subsistence allowance in accordance with 
Pub. L. 92-171 and to eligible participants of senior ROTC programs and 
commutation funds instead of uniforms (section 2110, Pub. L. 88-647) for 
members of senior ROTC programs at eligible schools.



Sec. 110.4  Responsibilities.

    (a) The Assistant Secretary of Defense (Force Management and 
Personnel) (ADS(FM&P)), or designee, shall:
    (1) Administer the overall DoD ROTC program.
    (2) Maintain liaison with the Military Departments regarding the 
functioning of the ROTC program.
    (3) Announce the standard rates of commutation instead of uniforms 
to the Military Departments not later than August 1 each year.
    (b) The Director, Defense Logistics Agency (DLA), shall provide the 
Military Departments during December of each year the current unit price 
list of uniform items to be used the following fiscal year.
    (c) The Secretaries of the Military Departments shall:
    (1) Prescribe the standard uniform items for each climatic zone, 
sex, and course (basic and advanced) in quantities authorized to be 
provided.
    (2) Develop the communication rates, based on the standard Military 
Service uniforms, and establish procedures for rate review on an annual 
basis.
    (3) Submit to the ASD(FM&P) an estimate of the rates of commutation, 
based on the latest DLA clothing rate, for climatic zones by sex and 
course not later than July 1 of each year.

[[Page 587]]

    (4) Classify educational institutions as Military Colleges (MC), 
Civilian Colleges (CC), or Military Junior Colleges (MJC), hereafter 
also called schools.
    (5) Conduct inspections to ensure that the schools meet the 
requirements for the respective classifications and that those receiving 
commutation funds provide quality uniforms in sufficient quantities.
    (6) Program and budget for subsistence allowance and commutation, 
instead of uniforms, for members of the senior ROTC program.



Sec. 110.5  Procedures.

    (a) Classification of institutions hosting Senior ROTC Units. 
Educational institutions hosting senior ROTC units maintained by the 
Military Departments shall be classified as essentially military or 
civilian colleges or universities.
    (1) The classification MC shall be assigned to units established in:
    (i) Essentially military colleges or universities that, for purposes 
of qualifying as an MC under 50 U.S.C. App. 456(a)(1):
    (A) Confer baccalaureate or graduate degrees.
    (B) Require a course in military training throughout the 
undergraduate course for all qualified undergraduate students.
    (C) Organize their military students as a corps of cadets under 
constantly maintained military discipline.
    (D) Require all members of the corps, including those nonmembers 
enrolled in the ROTC, to be habitually in uniform when on campus.
    (E) Have as their objective the development of the military 
students' character by means of military training and the regulation of 
their conduct in accordance with the principles of military discipline.
    (F) In general, meet military standards similar to those maintained 
at the Military Service academies.
    (ii) The designation ``all qualified undergraduate students,'' under 
paragraph (a)(i)(B) of this section means all physically fit students 
except:
    (A) Female students who waive their right to participate as provided 
by Pub. L. 95-485, section 809.
    (B) Foreign nationals.
    (C) Students who are not liable for induction by virtue of having 
honorably completed active training and service.
    (D) Students who are pursuing special undergraduate courses beyond 4 
years after completing the required military training.
    (E) Certain categories of students who are excused specifically by 
administrative decision and approved by the ROTC unit commander.
    (2) The classification CC shall be assigned when units are 
established at civilian colleges and universities that are not operated 
on an essentially military basis, but that confer baccalaureate or 
graduate degrees.
    (3) The classification MJC shall be assigned when ROTC units are 
established at essentially military schools that provide junior college 
or junior college and high school instruction, but DO NOT confer 
baccalaureate degrees. Those units shall meet all other requirements of 
an MC. (See Pub. L. 88-647).
    (b) Qualifying for the special rate of commutation. (1) To qualify 
for payment at the special rate of commutation instead of uniforms, an 
institution classified MC or CC shall meet in addition to paragraphs (a) 
(1), or (2), respectively the requirements below. An institution 
classified an MJC shall meet, in addition to paragraph (a)(1) (except 
paragraphs (a)(1)(i) (A) and (B)), the requirements below:
    (i) Organize and maintain within their undergradute student bodies a 
self-contained corps of cadets.
    (ii) Require all members of the corps of cadets to be in appropriate 
uniform at all times while on the campus.
    (iii) House all members of the corps of cadets in barracks separate 
from nonmembers.
    (iv) Require all members of the corps of cadets to be under 
constantly maintained military discipline on a 24-hours-per-day, 7-days-
per-week basis.
    (v) Require all physically qualified members of the above corps of 
cadets to be enrolled in the basic course of ROTC, except:
    (A) Female students who waive their right to participate as provided 
by Pub. L. 95-485.
    (B) Foreign nationals.

[[Page 588]]

    (C) Students who are not liable for induction by virtue of having 
completed honorably active training and service.
    (D) Certain categories of students are excused specifically by 
administrative decisions.
    (E) Other students whose enrollment is prevented by provisions or 
appropriate regulations of a Military Department.
    (2) MCs, CCs, or MJCs may be paid the special rate of commutation 
only for those members of the corps of cadets meeting the requirements 
set forth in paragraph (b)(1), who are enrolled in ROTC. The 
requirements of paragraphs (b)(1) (iii) and (iv), may be waived for 
married students, graduate students, and day students who are not housed 
with the corps of cadets. Day students are those ROTC cadets who are 
authorized by university officials to reside off campus within a 
reasonable commuting distance to the university.
    (3) Institutions designated as MCs may enroll into the ROTC, of the 
appropriate Military Service, those students who, for various reasons, 
are not required to be members of the corps of cadets. These 
institutions shall receive, for such student only, the standard 
commutation rate. The special rate shall be authorized for eligible 
females who elect to participate as enrolled senior ROTC cadets, 
provided that the requirements of paragraphs (b)(1) (ii), (iii), and 
(iv) are met or unless these requirements are waived under the 
provisions of paragraph (a)(1)(ii)(E).
    (c) Subsistence allowance and commutation rates--(1) Subsistence 
allowances. Payment that is made by the Military Departments instead of 
rations to each contract cadet enrolled in the advanced course and for 
each scholarship cadet enrolled in the basic or advanced course.

Payments are as prescribed in the DoD Military Pay and Allowances 
Entitlements Manual, part 8, chapter 4. The following rates are 
established for payment of subsistence allowance:
    (i) Except when on summer fiel training or practice cruises, when 
subsistence in kind is furnished, or when otherwise on active duty, the 
subsistence allowance for each enrolled member of the advanced training 
program in the senior ROTC shall be $100 per month for not more than a 
total of 20 months.
    (ii) Except when on summer field training or practice cruises, when 
subsistence in kind is furnished, the subsistence allowance for each 
cadet or midshipman appointed under the financial assistance program for 
specially selected members, under the provisions of Pub. L. 88-647, 
shall be $100 per month for not more than a total of 20 months during 
the basic course training program and $100 per month for not more than a 
total of 20 months during the advanced course training program unless 
the individual has been authorized extended entitlements under the 
provisions of Pub. L. 98-94. The $100 per month subsistence may be 
authorized for not more than a total of 30 months during the advanced 
course training program when an extended financial assistance 
entitlement is approved by the Military Service Secretary of the 
Military Department concerned.
    (2) Commutation instead of uniforms. Commutation is payment made by 
the Military Departments to an institution instead of the issue of 
uniforms to ROTC cadets in accordance with Pub. L. 88-647. Certain MCs, 
CCs, and MJCs that maintain senior ROTC units may elect to receive 
commutation instead of Government clothing. In such instances, the 
commutation rate shall include not only the uniform, but the 
procurement, receipt, storage, maintenance, and issue of the uniform as 
outlined in paragraph (c)(2)(xi), and shown in Appendix B.
    (i) The Military Departments shall develop the commutation rates and 
establish procedures for their review on an annual basis. The review 
shall be scheduled during May so that the current unit price list 
disseminated by the DLA during the previous December of each year can be 
used to develop the commutation rates and made available to institutions 
for use at the beginning of the fall term. The commutation payment shall 
be made to the institutions based on the number of students enrolled and 
in attendance for at least 60 consecutive days.
    (ii) Commutation rates for uniforms shall be based on the latest 
approved items of clothing for each climatic

[[Page 589]]

zone and computed using the formulas listed in Appendix B. Appendices C, 
D, and E are examples of the application of the various formulas to 
determine the amounts that can be paid to qualifying institutions.
    (iii) Standard commutation rates for the basic course (first 2 
years) of the senior ROTC shall be payable in the indicated amount on an 
annual basis not to exceed 2 years to CCs that offer Military Science 
(MS) I and II or equivalent. The rates shall be paid after cadets have 
been enrolled 60 days.
    (iv) Standard rates for the advanced course cover the 2-year period 
that each member is enrolled in advanced course training in the senior 
ROTC (Appendix D). These rates shall be paid after cadets have been 
enrolled for 60 days in the advanced course. Commutation funds for camp 
uniforms, if paid, shall be in addition to payments for the advanced 
course.
    (v) Special rates of commutation shall be paid for students enrolled 
at MCs, CCs, or MJCs fulfilling the requirements of paragraph (b).
    (vi) Special rates of commutation shall be identical for all the 
Military Services for those qualifying institutions defined in paragraph 
(b). These rates shall be three times the highest standard rate 
submitted by sex and course from the Military Departments for climatic 
zones 1 or 2. Each Military Department shall submit special rate 
estimates for zones 1 and 2 to the Assistant Secretary of Defense 
(ASD(FM&P), or designee, not later than July 1. The special rates shall 
be announced by the ASD(FM&P), or designee, not later than August 1 of 
each year.
    (vii) Special rates of commutation for students enrolled in the 
basic course (MS I and II or equivalent) of MCs, CCs, and MJCs shall be 
paid on an annual basis not to exceed 2 years. Special rates for 
students enrolled in the advanced course (MS III and IV or equivalent) 
of MCs, CCs, or MJCs shall be paid for the 2-year period that each 
member is enrolled in the advanced course.
    (viii) Commutation for the basic course and the advanced course 
shall be paid based on Appendices C and D, respectively.
    (ix) One-half of the special commutation rate shall be paid to the 
institution for those students enrolled in the second year of the 
advanced course for whom the institution previously has not received 
commutation.
    (x) The standard rates shown in Appendix E for summer field training 
are not subject to the special commutation rate adjustment.
    (xi) Commutation of uniform funds may be expended to support ONLY 
the following activities:
    (A) Procurement, receipt, storage, and issue expenses not to exceed 
10 percent of the cost for standard uniform items in quantities as 
prescribed by the Secretary of the Military Department concerned, or 
distinctive uniforms and insignia as prescribed by those institutions 
that meet the requirements of paragraph (b). Marking up or raising the 
price of that paid by an institution when items are purchased from 
military inventories is not authorized.
    (B) Alteration and maintenance of the uniform, which is defined as 
laundry, dry cleaning, renovation, alterations and sizing, not to exceed 
$10 per uniform.
    (C) Salary payments to the property custodian for custody of 
uniforms purchased with commutation funds. Such custodial fees shall not 
exceed the specified percent of the commutation funds received against 
the actual enrollments in each course listed below for the immediate 
past academic year:
    (1) 15 percent of basic course.
    (2) 5 percent of advance course.
    (3) 5 percent of field training (when applicable).
    (D) Purchase of hazard insurance to protect uniform inventory 
against loss.
    (xii) Unexpended commutation of uniform funds is the balance 
remaining after all commitments or obligations relating to the immediate 
past academic year and the amount of retained uniform commutation funds 
(see paragraph (c)(2)(xii)(A)) have been deducted. The unexpended 
balance shall be computed as of July 1 each year. Commitments or 
obligations relating to new year procurement, maintenance, or other 
allowable activities may not be charged against the unexpended balance. 
As an exception, the unexpended balance may be used for

[[Page 590]]

paying bills for procurements of past academic years that are submitted 
AFTER the cutoff date of the report required by paragraph 
(c)(2)(xii)(C).
    (A) The amount of unexpended uniform commutation funds an 
institution may retain from 1 academic year to the next for continued 
financing of the uniform program is the greater of $3500 or 20 percent 
of the uniform entitlement for the immediate past academic year.
    (B) Accumulated funds that exceed this limitation shall be returned 
to the Military Services.
    (C) As of July 1 of each year, a uniform commutation report DD Form 
2340, ``Annual Report on Uniform Commutation Fund'' shall be completed 
by the institution receiving commutation funds and submitted to the 
appropriate authority for each Military Service by July 31.
    (1) The uniform commutation report shall include a detailed list of 
expenditures, total funds available for the immediate past academic 
year, including the unexpended balance from the last report, an 
explanation of any monetary adjustments and errors, the balance of funds 
on hand, and the amount being refunded to the appropriate Military 
Service as the unexpended balance, if any. The report shall be 
coordinated with ROTC unit commanders and signed by the appropriate 
institutional official who maintains records of the receipt of funds.
    (2) All records on the receipt and expenditure of commutation funds 
shall be subject to periodic audit and inspection. Institution officials 
shall be responsive to recommendations made.
    (d) Inspection. Inspections shall be conducted when an ROTC unit is 
initially established at an institution that does not already host 
another Military Service ROTC unit. Inspections shall ensure that only 
those institutions that meet the requirements of paragraphs (a)(1) or 
(3), are awarded the MC or MJC classification and only those awarded MC, 
CC, and MJC classifications that meet the additional requirements of 
paragraph (b) shall be authorized the special rate of commutation 
instead of uniforms. Inspections of established units at MCs, CCs, and 
MJCs shall be conducted on an exception basis.
    (1) The Secretaries of Military Departments shall prescribe specific 
inspection procedures applicable to ROTC units of their respective 
Military Services.
    (2) When discrepancies are noted at institutions, their 
classifications shall be subject to review for resolution or withdrawal 
by the Secretaries of the Military Department concerned. In the instance 
of withdrawal of classification, the appropriate Military Service's 
review of, and final notification to, the institution shall be within 30 
days of the date the discrepancy was noted.



Sec. 110.6  Information requirement.

    The reporting requirement for paragraph (c)(2)(xii)(C) is assigned 
OMB No. 0704-0200.

   Appendix A to Part 110--Climatic Zones Used to Determine Rates of 
                          Commutation Allowance

                                 Zone I

1. Alabama
2. Arizona, only 100 mile-wide belt along south border
3. Arkansas, southern two-thirds
4. California, except area north of 37 deg.
5. Florida
6. Georgia
7. Guam
8. Hawaii
9. Kentucky, southeastern one-third
10. Louisiana
11. Mississippi
12. New Mexico, only 100 mile-wide belt along south border
13. North Carolina
14. Oklahoma, only southeastern portion
15. Puerto Rico
16. South Carolina
17. Tennessee, except northwest corner
18. Texas, except area border of 34 deg. north

                                 Zone II

1. Alaska
2. Arizona, except 100 mile-wide belt along south border
3. Arkansas, northern one-third
4. California, area south of 37 deg. north
5. Colorado
6. Connecticut
7. Delaware
8. District of Columbia
9. Idaho
10. Illinois
11. Indiana
12. Iowa
13. Kansas
14. Kentucky, NW two-thirds

[[Page 591]]

15. Maine
16. Maryland
17. Massachusetts
18. Michigan
19. Minnesota
20. Missouri
21. Montana
22. Nebraska
23. Nevada
24. New Hampshire
25. New Jersey
26. New Mexico, except a 100 mile-wide belt along south border
27. New York
28. North Dakota
29. Ohio
30. Oklahoma, except the southeast portion
31. Oregon
32. Pennsylvania
33. Rhode Island
34. South Dakota
35. Tennessee, only the northwest corner
36. Texas, only area north of 34 deg. north
37. Utah
38. Vermont
39. Virginia
40. Washington
41. West Virginia
42. Wisconsin
43. Wyoming

    The climate zones listed above are to be used as a guide to 
determine clothing requirements for a specific detachment. Wind chill 
equivalent temperatures can vary widely for areas within close proximity 
to each other due to variations in wind velocity and elevation. 
Detachment commanders may request a zone change by submitting evidence 
to the Major Command of the appropriate Military Service that the wind 
chill equivalent temperature for the coldest month has been within the 
limits of the requested zone classification for the past 3 consecutive 
years.

 Attachment to Appendix A to Part 110--Climatic Zones Used to Determine 
                Rates of Commutation Allowance (Formula)

    The Standard and special commutation rates are based on the latest 
approved items of clothing for each climatic zone. The zones are:

                                                                        
------------------------------------------------------------------------
                   Zone                          Temperature range      
------------------------------------------------------------------------
1........................................  32 degrees Fahrenheit and    
                                            above.                      
2........................................  Below 32 degrees Fahrenheit. 
------------------------------------------------------------------------

    To determine the appropriate zone for each ROTC detachment, use the 
table below. Enter the appropriate dry bulb temperature at the top and 
read down. Find the wind velocity on the left and read across. The 
intersection of the two lines provides the equivalent temperature. For 
example, a combination of 20 degrees Fahrenheit and a 10 mile-per-hour 
wind has a wind chill equivalent temperature of 3 degrees Fahrenheit. 
The wind chill equivalent temperature is based on the average monthly 
temperature and wind of the coldest month for each of the past 3 
consecutive years.

       Appendix B to Part 110--Formula For ROTC Commutation Rates

                 Basic Course (General Military Course)

Total Pkg. Cost of Auth. Items+10% Procurement Cost=Adjusted Pkg. Cost--
          Amortized by: 2-Yr. Life Shoes & Socks; 2-Yr. Life Insignia; 
          5-Yr. Life Bal. of Pkg.
+15% Custodial Fees+$10.00 Uniform Alteration and Maint.=Net Rate Per 
          Yr. (Rounded to nearest $)

             Advanced Course (Professional Officers Course)

Total Pkg. Cost of Auth. Items-\1/2\ Amt. of Insignia Cost (2-yr. 
          Amortization)+5% Custodial Fees+$10.00 Uniform Alteration & 
          Maint.=Net Rate 2-yr. period (Rounded to nearest $)

                      Summer Camp (Field Training)

Total Pkg. Cost of Auth. Items-Amortized by 2-yr. Life (Entire pkg., 
          except shoes and socks)+5% Custodial Fees+$10.00 Uniform 
          Alteration & Maint.=Net Rate 2-yr. period (Rounded to nearest 
          $)

  Appendix C to Part 110--Application of Basic Course Formula (Male and 
                        Female Members) (Sample)                        
------------------------------------------------------------------------
                                                      Zone I    Zone II 
------------------------------------------------------------------------
Total package cost (authorized items).............    $159.29    $180.62
Plus 10% procurement cost.........................      15.93      18.06
                                                   ---------------------
Adjusted package cost.............................     175.22     198.68
                                                   =====================
Amortization:                                                           
    2-years socks (50% of $1.28)..................        .64        .64
    2-years shoes (50% of 14.00)..................       7.00       7.00
    2-years insignia (50% of 15.00), if applicable       7.50       7.50
    5-years balance package (20% of $144.94, Zone                       
     I) (20% of $168.40, Zone II).................      28.99      33.68
                                                   ---------------------
      Amortized package cost......................      44.13      48.82
                                                   =====================
Add:                                                                    
    15% custodial fees (15% of amortized package                        
     cost)........................................       6.62       7.32
    Uniform Alteration and Maintenance............      10.00      10.00
                                                   ---------------------
      Total.......................................      16.62      17.32
Net rate..........................................      60.75      66.14
Rounded for official standard rate (per year).....      61.00      66.00
Special commutation rate (per year) (three times                        
 standard rate)...................................     183.00     198.00

[[Page 592]]

                                                                        
------------------------------------------------------------------------


Appendix D to Part 110--Application of Advanced Course Formula (Male and
                        Female Members) (Sample)                        
------------------------------------------------------------------------
                                                      Zone I    Zone II 
------------------------------------------------------------------------
Total package cost (authorized items).............    $159.29    $180.62
Less insignia amortization (50% of $15.00), if                          
 applicable.......................................       7.50       7.50
                                                   ---------------------
Adjusted package cost.............................     151.79     173.12
                                                   =====================
Add:                                                                    
    5% custodial fees (5% of adjusted package                           
     cost)........................................       7.59       8.66
    Uniform alteration and maintenance............      10.00      10.00
                                                   =====================
                                                        17.59      18.66
Net Rate..........................................     169.38     191.78
Rounded official standard rate (2 years)..........     169.00     192.00
Special commutation rate (2 years) (three times                         
 standard rate)...................................     507.00     576.00
------------------------------------------------------------------------


   Appendix E to Part 110--Application of 4-Week Summer Field Training  
                            Formula (Sample)                            
------------------------------------------------------------------------
                                                      Zone I    Zone II 
------------------------------------------------------------------------
Total package cost (authorized items).............     $36.56     $48.70
Amortization Schedule:                                                  
Total package less $12.75 (boots and socks) (not                        
 reissued)........................................      23.81      35.95
50% amortization (2-year life)....................      11.91      17.98
Boots and socks added.............................      12.75      12.75
Amortized package cost............................      24.66      30.73
Add:                                                                    
5% custodial fees.................................       1.23       1.54
Uniform alteration and maintenance................      10.00      10.00
Net rate..........................................      35.89      42.27
Rounded for official rate.........................      36.00      42.00
------------------------------------------------------------------------



PART 111--RESERVE OFFICERS' TRAINING CORPS PROGRAM FOR SECONDARY EDUCATIONAL INSTITUTIONS--Table of Contents




Sec.
111.1  Reissuance and purpose.
111.2  Applicability and scope.
111.3  Definitions.
111.4  Policy.
111.5  Responsibilities.
111.6  Information requirements.
111.7  Establishment of Junior ROTC at schools.

Enclosure 1--Examples: Computation of the Junior ROTC Instructor's 
          Compensation

    Authority: 10 U.S.C. 2031, as amended.

    Source: 47 FR 36636, Aug. 23, 1982, unless otherwise noted.



Sec. 111.1  Reissuance and purpose.

    This part is reissued to update and clarify policies for the 
organization and administration of the Reserve Officers' Training Corps 
(ROTC) program in all secondary schools (hereafter called Junior ROTC), 
as a result of amendments to title 10 U.S.C. section 2031. Amendments 
include new viability standards for Junior ROTC units, in accordance 
with section 602 of the Defense Appropriation Act, Fiscal Year (FY) 
1981, and the extension of the authority for section 607 in the Defense 
Authorization Bill, FY 1982.



Sec. 111.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense and 
the Military Departments. The term ``Military Service,'' as used herein, 
refers to the Army, Navy, Air Force, and Marine Corps.
    (b) Its provisions include those institutions with established 
Junior ROTC units and encompass the operation and administration of the 
Junior ROTC program worldwide at both public and private institutions.



Sec. 111.3  Definitions.

    (a) Active duty pay and allowances. For purposes of calculating the 
Junior ROTC instructor's pay, active duty pay and allowances shall be 
limited to basic pay, basic allowance for quarters, allowance for 
variable housing (VHA), allowance for uniforms (enlisted only), and 
basic allowance for subsistence, which the individual would receive if 
called to active duty.
    (b) High schools. Public and private secondary educational 
institutions that do not fall under the definition for military junior 
colleges and military institute schools.
    (c) Junior ROTC. All ROTC programs conducted at the secondary level 
of education.
    (d) Junior ROTC unit. An organized group of Junior ROTC students and 
faculty at one secondary school.
    (e) Military institute schools. Military schools at the secondary 
level of instruction that:
    (1) Require a 4-year course in military training.

[[Page 593]]

    (2) Organize their military students as a Corps of Cadets under 
constantly maintained military discipline.
    (3) Require all members of the Corps, including those members 
enrolled in military training, to be in appropriate uniform when on 
campus.
    (4) Have as their objectives the development of the student's 
character through military training, the regulation of the student's 
conduct in accordance with the principles of military discipline, and 
the meeting of military standards similar to those maintained at 
Military Service academies.
    (f) Military junior colleges. Schools that provide high school and 
college instruction but do not confer baccalaureate degrees. Junior ROTC 
units established at these schools meet all other requirements of 
military college institutions, as defined in 32 CFR part 110, and accept 
and maintain a specially designated program of instruction prescribed by 
the Military Department concerned.
    (g) Multiple Junior ROTC unit. Any group of units organized and 
sponsored under one school system in which the Junior ROTC program is 
conducted concurrently in more than one school.



Sec. 111.4  Policy.

    It is the policy of the Department of Defense to sponsor and fund 
the Junior ROTC program to provide an opportunity for secondary school 
students to learn the basic elements and requirements for national 
security and their personal obligations as Americans. The Junior ROTC 
program is intended to:
    (a) Develop informed and responsible citizens.
    (b) Strengthen character.
    (c) Promote an understanding of the basic elements and requirements 
for national security.
    (d) Help form habits of self-discipline.
    (e) Develop respect for and an understanding of the need for 
constituted authority in a democratic society.
    (f) Develop an interest in the Military Services as a possible 
career.



Sec. 111.5  Responsibilities.

    The Secretaries of the Military Departments. shall:
    (a) Sponsor and conduct a Junior ROTC program.
    (b) Provide a fair and equitable geographical distribution of their 
Junior ROTC units, with no more than one Military Service's Junior ROTC 
unit in a school.
    (c) Prescribe a curriculum of at least 3 academic years for their 
Junior ROTC units, offering students one of the following curricular 
programs:
    (1) Academic track (college preparatory). A minimum 3-year program 
with 96 hours yearly of military instruction. The academic track shall 
be offered only in those schools with a fully accredited program of 
academic studies, completion of which prepares the student for entry in 
a college offering Senior ROTC.
    (2) Technical track (noncollege preparatory). A minimum 3-year 
program with 96 hours yearly of military instruction coordinated with 
technical courses having a military application. These courses may be 
integrated into the required 96 hours of ROTC instruction upon approval 
of the Secretary of the Military Department concerned.
    (d) Prescribe advance placement.
    (1) A student presenting evidence of successful completion of either 
the academic or technical track of Junior ROTC under any Military 
Department is entitled to advance promotion to the grade of no less than 
E-2 upon initial enlistment in an active or reserve component of a 
Military Service.
    (2) A student presenting evidence of successful completion of a 3-
year Junior ROTC program (either track) is entitled to not less than 1 
year of credit in the basic course of Senior ROTC when the student 
enters college.
    (e) Reimburse the institution for Junior ROTC instructor salaries at 
the rate of one-half the amount of the difference between the 
instructor's retired or retainer pay and the amount of active duty pay 
and allowances (excluding hazardous duty pay) the instructor would 
receive if he or she were ordered to active duty.
    (f) Ensure that the provisions of Sec. 111.7 are followed.
    (g) Account for the cost incurred by the Department of Defense in 
sponsoring, conducting, or disestablishing a Junior ROTC unit.
    (h) Evaluate annually the operation, administration, and 
effectiveness of

[[Page 594]]

the overall Junior ROTC program and the individual Junior ROTC units in 
terms of cost and performance objectives.



Sec. 111.6  Information requirements.

    The theft of any military weapons or ammunition from a secondary 
educational institution shall be reported under Report Control Symbol 
DD-POL(SA&AR) 1358, as prescribed in DoD Directive 5100.76, ``Physical 
Security Review Board,'' February 10, 1981.



Sec. 111.7  Establishment of Junior ROTC at schools.

    (a) Junior ROTC establishment. Secondary educational institutions 
desiring to establish Junior ROTC units or to continue established units 
shall agree to:
    (1) Maintain a Junior ROTC enrollment of no less than 100 physcially 
fit students, or 10 percent of the number of students enrolled in the 
institution, who are at least 14 years of age and are citizens or 
nationals of the United States.
    (2) Employ as Junior ROTC instructors retired officers and enlisted 
personnel whose qualifications are approved by the Secretary of the 
Military Department concerned to administer the basic military 
orientation courses. Officer instructors shall possess baccalaureate or 
higher-level degrees. This qualification may be waived for a period of 4 
years from the time of initial hire or from the date of this part 
(whichever is later), if the school authority agrees and while the 
instructor works toward obtaining a bachelor's degree.
    (3) Pay retired personnel so employed. The institution is the 
employing agency and shall pay the full amount due the Junior ROTC 
instructor. The Junior ROTC instructor shall receive retired or retainer 
pay from the U.S. Government. The amount due from the institution is at 
least the amount equal to the difference between retired or retainer pay 
and the active duty pay and allowance that the Junior ROTC instructor 
would receive if ordered to active duty. The institution shall be 
reimbursed for Junior ROTC instructor salaries at the rate of one-half 
the difference of the instructor's retirement or retainer pay and active 
duty pay and allowances. For purposes of calulating a Junior ROTC 
instructor's pay, ``active duty pay and allowances'' shall be limited to 
the basic pay, basic allowance for quarters, allowance for variable 
housing (VHA), allowance for uniforms (enlisted only), and basic 
allowance for subsistence. The level of active duty pay and allowances, 
less retired or retainer pay, is the minimum salary the institution 
shall pay Junior ROTC instructors. This should not be considered an 
attempt to cap or limit the amount of pay that may be agreed upon 
between the individual Junior ROTC instructor and the instructor's 
employer. The institution may pay more than the amount equal to the 
difference between retired or retainer pay and the individual's active 
duty pay and allowance rate, but shall do so without additional 
entitlement for reimbursement from the Federal government. (See 
enclosure 1 for examples of proper computation of the Junior ROTC 
instructor's pay.)
    (4) Contract separately with the individual Junior ROTC instructor 
for any additional duties desired by the institution beyond those 
connected with the instruction, operation, and administration of the 
Junior ROTC program, at no cost to the Military Department concerned. 
Such additional services shall be performed outside the scope of Junior 
ROTC duties and hours. (This requirement does not preclude Junior ROTC 
instructors from serving on routine committees or from performing other 
extracurricular duties normally performed by other faculty members.) 
(See enclosure 1.)
    (5) Compensate a Junior ROTC instructor only for the period of time 
he or she performs duties as a Junior ROTC instructor. For periods of 
service as a Junior ROTC instructor for less than 12 months of a 
calendar or fiscal year, the instructor shall be compensated the 
difference between the amount of the retirement (or retainer) pay and 
active duty pay times the length of employment as a Junior ROTC 
instructor expressed as a fraction of 12 months. (Refer to enclosure 1, 
Examples C and D, for clarification.)

[[Page 595]]

    (6) Provide an additional amount of compensation for a Junior ROTC 
instructor for only that part of the summer (or interim) months, between 
academic sessions, during which the instructor performs administrative 
or instructional duties that are directly related to the Junior ROTC 
program. Administrative and instructional duties directly related to the 
Junior ROTC program that would entitle a Junior ROTC instructor to 
additional compensation include, but are not limited to:
    (i) Administrative and instructional duties performed in an interim 
term Junior ROTC program, such as summer school;
    (ii) The grading of examinations and papers during the period 
immediately following the end of the school year; and
    (iii) The preparation of new course materials during the period 
immediately preceding the beginning of a school year.
    (7) Advise the Secretary of the Military Department concerned of any 
change of employment status of retired personnel employed at an 
institution.
    (8) Provide suitable safeguards for the government property 
provided. Such safeguards shall include, but not be limited to:
    (i) Employment of clerical and maintenance personnel required to 
issue, account for, and maintain the government property.
    (ii) Bonds or insurance (or both) to cover loss and damage of the 
property.
    (iii) Secure storage of U.S. military weapons and ammunition in the 
inventory of Junior ROTC units. Junior ROTC units that have U.S.-
furnished military weapons and ammunition in their inventory shall be 
inspected for physical security by the sponsoring Military Department. 
Established security standards for arms rooms, including separate secure 
storage of bolts of operable weapons, shall be emphasized.
    (9) Provide positive safeguards to prevent discrimination against 
students or instructors on the grounds of sex, race, religion, or 
national origin.
    (10) Provide adequate facilities for classroom instruction, storage 
for the unit's equipment (see paragraph (a)(8)(iii) of this section, and 
adequate, suitably located drill areas, as determined by the Secretary 
of the Military Department concerned.
    (11) Provide the required courses of instruction and maintain the 
standards prescribed by the Secretary of the Military Department 
concerned.
    (b) Junior ROTC instructors. (1) The Secretary of the Military 
Department concerned may authorize one active duty officer, O-4 or 
below, and one active duty enlisted member, E-7 or below, to be assigned 
as instructor at each military institute school or high school level of 
military junior college. Military institute schools and the secondary 
level of military junior colleges desiring additional instructors shall 
acquire them through the employment of retired personnel as set forth 
above. Active duty personnel assigned to military institute schools and 
the high school level of military junior colleges count against the 
student-instructor ratio prescribed in paragraph (b)(2)(i) of this 
section.
    (2) Authorized strength of retired officer and noncommissioned 
officer instructors:
    (i) Single Junior ROTC units and each subunit of a mutiple Junior 
ROTC unit shall be authorized one retired officer instructor per 500 
enrolled ROTC students, or major fraction thereof, and one retired 
enlisted instructor per 100 enrolled ROTC students, or major fraction 
thereof.
    (ii) As exceptions to the above, any school that qualifies for a 
Junior ROTC unit shall be authorized at least one officer and, when 
necessary, the Secretary of the Military Department concerned may 
authorize substitution of officers for enlisted instructors, and 
conversely, within the above authorizations.
    (iii) Supervisory personnel for multiple Junior ROTC units shall be 
obtained by organizing the multiple unit so that these limitations are 
not exceeded.
    (3) Retired officer and noncommissioned officer instructors are 
employees of the school and are responsible to school authorities for 
the conduct of the Junior ROTC program. In this regard, however, the 
Secretary of the Military Department concerned shall

[[Page 596]]

hold the school authorities responsible for the conduct of the program 
as prescribed. Junior ROTC instructors must meet Military Service 
requirements and maintain standards acceptable to the Military 
Department concerned.
    (c) Eligibility of students. (1) To enroll in the Junior ROTC, 
students shall be at least 14 years old and shall meet the physical 
standards prescribed by the Secretary of the Military Department 
concerned.
    (2) The Secretary concerned may prescribe qualifying tests and 
cutoff scores for Junior ROTC training.
    (d) Supply and maintenace. (1) The Secretaries of the Military 
Departments may authorize the issuance of equipment to a designated 
official of the educational institution concerned, as follows:
    (i) Military equipment needed for the prescribed military training 
program, provided the equipment is not needed for training of their 
regular and reserve components.
    (ii) Surplus military equipment, allied to military requirements for 
particular technical training courses (DoD Directive 5100.13, ``Donation 
of Surplus Personal Property to Educational Activities of Special 
Interest to the Armed Services,'' November 18, 1971), when, in the 
judgment of the Secretary of the Military Department concerned, the 
military training requirements is warranted.
    (iii) Spare parts, tools, cleaning materials, technical 
publications, and other materials necessary for maintenance of the 
equipment.
    (iv) Necessary test materials, individual equipment, and uniforms.
    (2) The Military Department concerned shall pay transportation 
charges, including packaging and handling, for shipment to and from the 
institution. The institution shall pay all other costs incident to 
maintenance and local storage and safeguarding of the property.
    (e) Disestablishment of Junior ROTC units. (1) When the Secretary of 
a Military Department determines that a Junior ROTC unit does not meet 
the standards specified in appropriate Military Service directives 
(other than for enrollment), school authorities concerned shall be 
notified that the unit has been placed on a 1-year probationary status. 
Disestablishment of the unit shall be effective at the conclusion of the 
probationary period if the reason for the probationary status has not 
been resolved.
    (2) Junior ROTC units that are in at least their 2nd year of 
enrollment and do not have the statutory minimum of 100 students, or 10 
percent of the number of students enrolled in the institution, who are 
at least 14 years of age, whichever is less, shall be placed on 
probation immediately. No later than the end of the academic year, the 
Military Department concerned shall evaluate the unit's potential to 
attain the minimum enrollment upon the opening of school in the fall. If 
it is likely the enrollment minimum will not be met, the Military 
Department concerned shall encourage school authorities to concur in 
disestablishment of the unit at the end of that current school year. The 
Military Department concerned shall make the final determination as to 
the school's capability to meet the enrollment minimum. When the 
Military Department's evaluation indicates that minimum enrollment 
probably will be met at the beginning of the fall school term, the unit 
may be continued. However, no later than 30 days following the beginning 
of the next school term, the sponsoring Military Department shall 
determine whether the enrollment minimum has been met. If it has not, 
the school shall be officially notified of the unit's disestablishment, 
and physical termination shall be scheduled for no later than the end of 
that academic year.
    (f) Junior ROTC in DoD Dependents Schools (DoDDS) high schools. (1) 
The requesting high school principal shall forward applications for the 
establishment of individual Junior ROTC units through established school 
channels in each geographic area to the appropriate Military Department.
    (2) The nomination of retired officer and noncommissioned officer 
instructors shall be in accordance with applicable regulations of the 
Military Departments. The respective Military Departments shall submit 
the names of nominees to the Director, DoDDS, ATTN: Teacher Recruitment, 
for final

[[Page 597]]

selection and appointment to positions in the DoDDS high schools. Junior 
ROTC instructors shall be employed in accordance with part 69 of this 
title.
    (3) In addition to meeting Military Department qualifications, each 
applicant for a Junior ROTC instructor position must meet the criteria 
required by the North Central Accreditation Association of Colleges and 
Secondary Schools (NCA). NCA criteria may be obtained from the Director, 
DoDDS, Office of the Assistant Secretary of Defense (Manpower, Reserve 
Affairs, and Logistics).

   Enclosure 1--Examples: Computation of the Junior ROTC Instructor's 
                              Compensation

    The computation of the amount due to the Junior ROTC instructor, 
from the U.S. Government and the institutions is illustrated in the 
examples provided below.
    Example A: A Junior ROTC instructor agrees to instruct, administer, 
and operate a Junior ROTC unit for 12 months at Murray High School. 
Murray High School remains open 12 months of the year without the usual 
summer recess.

                                                                        
                                                                        
                                                                        
                                                                        
Due to the Junior ROTC Instructor:                                      
From the U.S. Government:                                               
   Annual military retirement pay.........  .........    $20,000
From the School District:                                               
   Minimum due the instructor from the                          
   institution is the difference between the                            
   annual retirement pay and what the instructor                        
   would earn annually if called to active duty:                        
    Active duty pay and allowances:                                     
      (a) Basic pay                                                     
      (b) Basic allowance for quarters                                  
      (c) Allowance for variable housing (VHA)                          
      (d) Allowance for uniforms (enlisted only)                        
      (e) Basic allowance for subsistence                               
      (f) All other pay and allowances are                              
       excluded unless permitted by specific                            
       revision to DoD Directive 1205.13                                
        Total                                         $28,000  .........
                                                   -----------          
      Difference: Retirement pay less active duty                       
       pay........................................      8,000  .........
      Minimum due the instructor from the                               
       institution................................  .........      8,000
                                                              ----------
Junior ROTC Instructors's Total Compensation......  .........     28,000
                                                                        
\1\ Reimbursable to the School District from the Federal Government (\1/
  2\ of $8,000), $4,000.                                                

    Example B: If the school district in EXAMPLE A feels that the Junior 
ROTC instructor should be compensated more than the minimum, they may do 
so.

                                                                        
                                                                        
                                                                        
                                                                        
Due to the Junior ROTC Instructor:                                      
From the U.S. Government:                                               
   Annual military retirement pay....................    $20,000
From the School District:                                               
   Minimum annual compensation (see computation in              
   Example A)................................................  \2\ $8,00
                                                                       0
   Any additional compensation for Junior ROTC-                 
   related responsibilites...................................      4,000
Junior ROTC Instructor's Total Compensation..................     32,000
                                                                        
\2\ Reimbursable to the School District from the Federal Government (\1/
  2\ of $8,000) (4,000).                                                

    Example C: Murray High School wanted the Junior ROTC instructor to 
coach the football team. A separate contract between Murray High School 
and the Junior ROTC instructor was written to describe any additional 
duties desired by the institution beyond those connected with the 
instruction, administration, and operation of the Junior ROTC unit. (See 
enclosure 2, subsection A.4.)

                                                                        
                                                                        
                                                                        
                                                                        
Due to the Junior ROTC Instructor:                                      
From the U.S. Government:                                               
   Annual military retirement pay....................    $20,000
From the School District:                                               
   Minimum Junior ROTC compensation (see computation            
   in EXAMPLE A).............................................  \3\ 8,000
   Any additional compensation for Junior ROTC-                 
   related responsibilities..................................      4,000
   Compensation for separately contracted                       
   responsibilities related to coaching the football team....      2,000
Junior ROTC Instructor's Total Compensation..................     34,000
                                                                        
\3\ Reimbursable to the School District from the Federal Government,    
  4,000.                                                                

    Example D: Central High School is open 9 months of the year for 
instruction and a total of an additional month for preregistration 
activities, such as preparing curricula and counseling students in 
August, and postacademic activities in June, such as recording permanent 
grades and taking inventory on teaching materials needed for the coming 
academic year. As an instructor at Central High School, the Junior ROTC 
instructor shall participate in these required duties.
    The Junior ROTC instructor has accepted a 10-month contract with 
Central High School to provide instruction, administration, and 
operation of the Junior ROTC unit. His compensation is calculated as 
follows:

[[Page 598]]



                                                                        
                                                                        
                                                                        
                                                                        
Due to the Junior ROTC Instructor:                                      
From the U.S. Government:                                               
   Annual military retirement pay.........               $20,000
From the School District:                                               
   Minimum Junior ROTC instructor's                             
   compensation prorated to 10-month period.......                      
  Annual military retirement pay..................    $20,000           
  Annual pay and allowances if called to active                         
   duty...........................................    $28,000  .........
                                                   -----------          
  Annual difference...............................      8,000           
  Prorated Difference: Minimum amount due the                           
   Junior ROTC instructor from the school                               
   district=\10/12\ of $8,000.....................  .........  \4\ $6,66
                                                                       7
                                                              ----------
Junior ROTC Instructor's Total Compensation.......                26,667
                                                                        
\4\ Reimbursable to the School District from the Federal Government (\1/
  2\ of $6,667) $3,334.                                                 

    Example E: The Junior ROTC instructor in EXAMPLE D has elected to 
have his compensation from the school district paid in 12 equal payments 
during the year. This does not change the annual minimum compensation 
due from the institution as the following computation indicates.

                                                                        
                                                                        
                                                                        
                                                                        
Due to the Junior ROTC Instructor:                                      
From the U.S. Government:                                               
   Annual military retirement pay....................    $20,000
From the School District:                                               
   Minimum Junior ROTC instructor's compensation                
   prorated to a 10-month period (See computation in Example            
   D)........................................................  \5\ 6,667
  (Paid in 12 monthly checks in the amount of $555.58 each              
   equals $6,667)............................................           
Junior ROTC Instructor's Total Compensation..................     26,667
                                                                        
\5\ Reimbursable to the School District from the Federal Government (\1/
  2\ of $6,667) $3,334.                                                 



PART 112--INDEBTEDNESS OF MILITARY PERSONNEL--Table of Contents




Sec.
112.1  Purpose.
112.2  Applicability and scope.
112.3  Definitions.
112.4  Policy.
112.5  Responsibilities.

    Authority: 5 U.S.C. 5520a(k) and 10 U.S.C. 113(d).

    Source: 60 FR 1721, unless otherwise noted.



Sec. 112.1  Purpose.

    This part: (a) Updates policy and responsibilities governing 
delinquent indebtedness of members of the Military Services, and 
prescribes policy for processing involuntary allotments from the pay of 
military members to satisfy judgment indebtedness in accordance with 5 
U.S.C. 5520a(k).
    (b) Establishes responsibility for procedures implementing 5 U.S.C. 
5520a(k), 15 U.S.C. 1601 note, 1601-1614, 1631-1646, 1661-1665a, 1666-
1666j, and 1667-1667e (``Truth in Lending Act''), and 15 U.S.C. 1601 
note, and 1692-1692o (``Fair Debt Collection Practices Act'').
    (c) Designates the Director, Defense Finance and Accounting Service 
(DFAS), as the Department of Defense Executive Agent for forms necessary 
to process involuntary allotments. The Executive Agent shall publish, 
print, stock, distribute, and revise forms.



Sec. 112.2  Applicability and scope.

    (a) Applies to the Office of the Secretary of Defense, the Military 
Departments (including the Coast Guard when it is not operating as a 
Military Service in the Navy by agreement with the Department of 
Transportation), the Chairman of the Joint Chiefs of Staff, the Unified 
Combatant Commands, the Inspector General of the Department of Defense, 
the Defense Agencies, and the Department of Defense Field Agencies 
(hereafter referred to collectively as ``the Department of Defense 
Components''). The term ``Military Services,'' as used herein, refers to 
the Army, the Navy, the Air Force, the Marine Corps, and the Coast 
Guard.
    (b) The provisions of this part do not apply to:
    (1) Indebtedness of a member of the Military Services to the Federal 
Government.
    (2) Processing of indebtedness claims to enforce judgments against 
military members for alimony or child support.
    (3) Claims by State or municipal governments under the processing 
guidelines for complaints, including tax collection actions.



Sec. 112.3  Definitions.

    (a) Absence. A member's lack of an ``appearance,'' at any stage of 
the judicial process, as evidenced by failing to physically attend court 
proceedings; failing to be represented at court proceedings by counsel 
of the member's choosing; or failing to timely respond to pleadings, 
orders, or motions.
    (b) Court. A court of competent jurisdiction within any State, 
territory, or possession of the United States.

[[Page 599]]

    (c) Debt collector. An agency or agent engaged in the collection of 
debts described under 15 U.S.C. 1601 note and 1692-1692o (``Fair Debt 
Collection Practices Act'').
    (d) Exigencies of military duty. A military assignment or missing-
essential duty that, because of its urgency, importance, duration 
location, or isolation, necessitates the absence of a member of the 
Military Services from appearance at a judicial proceeding or prevents 
the member from being able to respond to a notice of application for an 
involuntary allotment. Exigency of military duty is normally presumed 
during periods of war, national emergency, or when the member is 
deployed.
    (e) Judgment. A final judgment must be a valid, enforceable order or 
decree, by a court from which no appeal may be taken, or from which no 
appeal has been taken within the time allowed, or from which an appeal 
has been taken and finally decided. The judgment must award a sum 
certain amount and specify that the amount is to be paid by an 
individual who, at the time of application for the involuntary 
allotment, is a member of the Military Services.
    (f) Just financial obligations. A legal debt acknowledged by the 
military member in which there is no reasonable dispute as to the facts 
or the law; or one reduced to judgment that conforms to the Soldiers' 
and Sailors' Civil Relief Act of 1940, as amended (50 U.S.C. appendix 
sections 501-591).
    (g) Member of the military services. Any member of the Regular Army, 
Air Force, Navy, Marine Corps, or Coast Guard, and any member of a 
Reserve component of the Army, Air Force, Navy, Marine Corps or Coast 
Guard (including the Army National Guard of the United States and the 
Air National Guard of the United States) on active duty pursuant to 10 
U.S.C. 672, for a period in excess of 180 days at the time an 
application for involuntary allotment is received by the Director, DFAS, 
or Commanding Officer, Coast Guard Pay and Personnel Center. The 
following shall not be considered members:
    (1) Retired personnel, including those placed on the temporary or 
permanent disabled retired list; and
    (2) Personnel in a prisoner of war or missing in action status, as 
determined by the Secretary of the Military Department concerned.



Sec. 112.4  Policy.

    (a) Members of the Military Services are expected to pay their just 
financial obligations in a proper and timely manner. A Service member's 
failure to pay a just financial obligation may result in disciplinary 
action under the Uniform Code of Military Justice (10 U.S.C. 801-940) or 
a claim pursuant to Article 139 of the Uniform Code of Military Justice 
(10 U.S.C. 939). Except as stated in this section, and in paragraphs 
(a)(1) and (a)(2) of this section, the Department of Defense Components 
have no legal authority to require members to pay a private debt or to 
divert any part of their pay for satisfaction of a private debt.
    (1) Legal process instituted in civil courts to enforce judgments 
against military personnel for the payment of alimony or child support 
shall be acted on in accordance with 42 U.S.C. 651-665, and Part 7, 
Chapter 7, Section B. of Department of Defense 7000.14-R \1\, Volume 7, 
Part A.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    (2) Involuntary allotments under 5 U.S.C. 5520a(k) shall be 
established in accordance with this part.
    (b) Whenever possible, indebtedness disputes should be resolved 
through amicable means. Claimants may contact military members by having 
correspondence forwarded through the military locator services for an 
appropriate fee, as provided under DoD Instruction 7230.7.\2\
---------------------------------------------------------------------------

    \2\ See footnote 1 to Sec. 112.4(a)(1)
---------------------------------------------------------------------------

    (c) The following general policies apply to processing of debt 
complaints (not involuntary allotments):
    (1) Debt complaints meeting the requirements of this part, and 
procedures established by the Under Secretary of Defense (Personnel and 
Readiness), as required by 32 CFR part 113, shall receive prompt 
processing assistance from commanders.

[[Page 600]]

    (2) Assistance in indebtedness matters shall not be extended to 
those creditors:
    (i) Who have not made a bona fide effort to collect the debt 
directly from the military member;
    (ii) Whose claims are patently false and misleading; or
    (iii) Whose claims are obviously exorbitant;
    (3) Some States have enacted laws that prohibit creditors from 
contacting a debtor's employer about indebtedness or communicating facts 
on indebtedness to an employer unless certain conditions are met. The 
conditions that must be met to remove this prohibition are generally 
such things as reduction of a debt to judgment or obtaining written 
permission of the debtor.
    (i) At Department of Defense installations in States having such 
laws, the processing of debt complaints shall not be extended to those 
creditors who are in violation of the State law. Commanders may advise 
creditors that this rule has been established because it is the general 
policy of the Military Services to comply with State law when that law 
does not infringe upon significant military interests.
    (ii) The rule in Sec. 112.4(c)(3)(i) shall govern even though a 
creditor is not licensed to do business in the State where the debtor is 
located. A similar practice shall be started in any State enacting a 
similar law regarding debt collection.
    (4) Under 15 U.S.C. 1601 note and 1692-1692o (``Fair Debt Collection 
Practices Act''), contact by a debt collector with third parties, such 
as commanding officers, for aiding debt collection is prohibited without 
a court order, or the debtor's prior consent given directly to the debt 
collector. Creditors are generally exempt from this requirement, but 
only when they collect on this own behalf.
    (d) The following general policies apply to processing of 
involuntary allotments under 5 U.S.C. 5520a(k).
    (1) In those cases in which the indebtedness of a military member 
has been reduced to a judgment, an application for an involuntary 
allotment from the pay of the member may be made under procedures 
prescribed by the Under Secretary of Defense (Personnel and Readiness). 
Such procedures shall provide the exclusive remedy available under 5 
U.S.C. 5520a(k).
    (2) An involuntary allotment from a member's pay shall not be 
started in any indebtedness case in which:
    (i) Exigencies of military duty caused the absence of the member 
from the judicial proceeding at which the judgment was rendered; or
    (ii) There has not been compliance with the procedural requirements 
of the Soldiers' and Sailors' Civil Relief Act of 1940, 50 U.S.C. 
appendix sections 501-591.



Sec. 112.5  Responsibilities.

    (a) The Under Secretary of Defense for Personnel and Readiness 
shall:
    (1) In consultation with the Under Secretary of Defense 
(Comptroller), establish procedures for the processing of debt 
complaints and involuntary allotments.
    (2) Have policy oversight on the assistance to be provided by 
military authorities to creditors of military personnel who have debt 
complaints, and on involuntary allotment of military pay.
    (b) The Under Secretary of Defense (Comptroller) shall:
    (1) Establish, as necessary, procedures supplemental to those 
promulgated by the Under Secretary of Defense (Personnel and Readiness) 
to administer and process involuntary allotments from the pay of members 
of the Military Services; this includes the authority to promulgate 
forms necessary for the efficient administration and processing of 
involuntary allotments.
    (2) Ensure that the Director, DFAS:
    (i) Implements procedures established by the Under Secretary of 
Defense (Personnel and Readiness) and the Under Secretary of Defense 
(Comptroller).
    (ii) Considers whether the Soldiers' and Sailors' Civil Relief Act 
of 1940, as amended (50 U.S.C. appendix sections 501-591), has been 
complied with under 5 U.S.C. 5520a(k) prior to establishing an 
involuntary allotment against the pay of a member of the Military 
Services.
    (iii) Acts as the Department of Defense Executive Agent for 
Department

[[Page 601]]

of Defense forms necessary to process involuntary allotments.
    (c) The Heads of the Department of Defense Components shall urge 
military personnel to meet their just financial obligations, since 
failure to do so damages their credit reputation and affects the public 
image of all Department of Defense personnel. See DoD Directives 
1000.10,\3\ 1000.11,\4\ and 5500.7.\5\
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 112.4(a)(1).
    \4\ See footnote 1 to Sec. 112.4(a)(1).
    \5\ See footnote 1 to Sec. 112.4(a)(1).
---------------------------------------------------------------------------

    (d) The Secretaries of the Military Departments shall:
    (1) Establish, as necessary, procedures to administer and process 
involuntary allotments from the pay of members of the Military Services. 
This includes designating those commanders, or other officials who may 
act in the absence of the commander, who shall be responsible for 
determining whether a member's absence from a judicial proceeding was 
caused by exigencies of military duty, and establishing appeal 
procedures regarding such determinations.
    (2) Require commanders to counsel members to pay their just debts, 
including complying, as appropriate, with court orders and judgments for 
the payment of alimony or child support.
    (3) Emphasize prompt command action to assist with the processing of 
involuntary allotment applications.
    (e) The Chief, Office of Personnel and Training, for the Coast Guard 
shall:
    (1) Establish, as necessary, procedures supplemental to those 
promulgated by the Under Secretary of Defense (Personnel and Readiness) 
to administer and process involuntary allotments from the pay of members 
of the Military Services; this includes the authority to promulgate 
forms necessary for the efficient administration and processing of 
involuntary allotments.
    (2) Ensure that the Commanding Officer, Coast Guard Pay and 
Personnel Center:
    (i) Implements procedures established by the Under Secretary of 
Defense (Personnel and Readiness) and Chief, Office of Personnel and 
Training.
    (ii) Considers whether the Soldiers' and Sailors' Civil Relief Act 
of 1940, as amended (50 U.S.C. appendix sections 501-591), has been 
complied with under 5 U.S.C. 5520a(k) prior to establishing an 
involuntary allotment against the pay of a member of the Military 
Services.
    (iii) Acts as the Coast Guard Executive Agent for forms necessary to 
process involuntary allotments.



PART 113--INDEBTEDNESS PROCEDURES OF MILITARY PERSONNEL--Table of Contents




Sec.
113.1  Purpose.
113.2  Applicability.
113.3  Definitions.
113.4  Policy.
113.5  Responsibilities.
113.6  Procedures.

Appendix A to part 113--Certificate of Compliance
Appendix B to part 113--Standards of Fairness
Appendix C to part 113--Sample DD Form 2653, ``Involuntary Allotment 
          Application''
Appendix D to part 113--Sample DD Form 2654, ``Involuntary Allotment 
          Notice and Processing''

    Authority: 5 U.S.C. 5520a(k) and 10 U.S.C. 113(d).

    Source: 60 FR 1722, Jan. 5, 1995, unless otherwise noted.



Sec. 113.1  Purpose.

    This part implements policy, assigns responsibilities, and 
prescribes procedures under 32 CFR part 112 governing delinquent 
indebtedness of members of the Military Services.



Sec. 113.2  Applicability.

    This part applies to the Office of the Secretary of Defense, the 
Military Departments (including the Coast Guard when it is not operating 
as a Military Service in the Navy by agreement with the Department of 
Transportation), the Chairman of the Joint Chiefs of Staff, the Unified 
Combatant Commands, the Inspector General of the Department of Defense, 
the Defense Agencies, and the DoD Field Activities (hereafter referred 
to collectively as ``the DoD Components''). The term ``Military 
Services,'' as used herein, refers to the Army, the Navy, the Air Force, 
the Marine Corps, and the Coast Guard.

[[Page 602]]



Sec. 113.3  Definitions.

    (a) Appearance. The presence and participation of a member of the 
Military Services, or an attorney of the member's choosing, throughout 
the judicial proceeding from which the judgment was issued that is the 
basis for a request for enforcement through involuntary allotment.
    (b) Applicant. The original judgment holder, a successor in 
interest, or attorney or agent thereof who requests an involuntary 
allotment from a member of the Military Services pursuant to DoD 
Directive 1344.9.\1\
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    (c) Pay subject to involuntary allotment. For purposes of complying 
with 32 CFR part 112 and 5 U.S.C. 5520a(k), pay subject to involuntary 
allotment shall be determined by:
    (1) Including:
    (i) Basic pay but excluding reduction for education for education 
benefits under section 38 U.S.C. 1411 (``New G.I. Bill'').
    (ii) Special pay (including enlistment and reenlistment bonuses).
    (iii) Incentive pay.
    (iv) Accrued leave payments (basic pay portion only).
    (v) Readjustment pay.
    (vi) Severance pay (including disability severance pay).
    (vii) Lump-sum Reserve bonus.
    (viii) Inactive duty training pay.
    (2) Excluding:
    (i) Retired pay (including) disability retired pay).
    (ii) Retainer pay.
    (iii) Separation pay, Voluntary Separation Incentive (VSI), and 
Special Separation Benefit (SSB).
    (iv) Allowances paid under titles 10 and 37 of the United States 
Code (e.g., Chapter 53 of title 10 and Chapter 7 of title 37, 
respectively) and other reimbursements for expenses incurred in 
connection with duty in the Military Service or allowances in lieu 
thereof.
    (v) Payments not specifically enumerated in Sec. 113.3(c)(1).
    (3) After including the items in Sec. 113.3(c)(1), subtracting the 
following pay items to compute the final earnings value of the pay 
subject to involuntary allotment:
    (i) Federal and State employment and income tax withholding (amount 
limited only to that which is necessary to fulfill member's tax 
liability).
    (ii) FICA tax.
    (iii) Amounts mandatorily withheld for the United States Soldiers' 
and Airmen's Home.
    (iv) Deductions for the Servicemen's Group Life Insurance coverage.
    (v) Retired Serviceman's Family Protection Plan.
    (vi) Indebtedness to the United States.
    (vii) Fines and forfeitures ordered by a court-martial or a 
commanding officer.
    (viii) Amounts otherwise required by law to be deducted from a 
member's pay (except payments under 42 U.S.C. 659, 661, 662, and 665).
    (d) Preponderence of the evidence. A greater weight of evidence that 
is more credible and convincing to the mind. That which best accords 
with reason and probability. (See Black's Law Dictionary \2\)
---------------------------------------------------------------------------

    \2\ Black's Law Dictionary, Fourth Edition, West Publishing Company, 
Saint Paul, Minnesota (1952).
---------------------------------------------------------------------------

    (e) Proper and Timely Manner. A manner that under the circumstances 
does not reflect discredit on the Military Service.



Sec. 113.4  Policy.

    (a) It is DoD policy under 32 CFR part 112 that procedures be 
established for the processing of debt complaints against members of the 
Military Services and involuntary allotments from the pay of members of 
the Military Services.
    (b) An involuntary allotment shall not exceed the lesser of 25 
percent of a member's pay subject to involuntary allotment or the 
maximum percentage of pay subject to garnishment proceedings under the 
applicable State law.
    (c) The amount of an involuntary allotment under 32 CFR part 112 and 
this part when combined with deductions as a result of garnishments or 
statutory allotments for spousal support and child support under 42 
U.S.C. 659, 661, 662, or 665, may not exceed the lesser of

[[Page 603]]

25 percent of a member's pay subject to involuntary allotment or the 
maximum percentage of pay subject to garnishment proceedings under 
applicable State law. In any case in which the maximum percentage would 
be exceeded, garnishments and involuntary allotments for spousal and 
child support shall take precedence over involuntary allotments 
authorized under 32 CFR part 112 and this part. Involuntary allotments 
established under 32 CFR part 112 and this part shall be reduced or 
stopped as necessary to avoid exceeding the maximum percentage allowed.
    (d) The Truth in Lending Act (15 U.S.C. 1601 note, 1601-1614, 1631-
1646, 1661-1666j, and 1667-1667e) prescribes the general disclosure 
requirements that must be met by those offering or extending consumer 
credit and Federal Reserve Board Regulation Z (12 CFR 226) prescribes 
the specific disclosure requirements for both open-end and installment 
credit transactions. In place of Federal Government requirements, State 
regulations apply to credit transactions when the Federal Reserve Board 
has determined that the State regulations impose substantially similar 
requirements and provide adequate enforcement measures. Commanding 
officers, with the assistance of judge advocates, should check 
regulations of the Federal Reserve Board to determine whether Federal or 
State laws and regulations govern.



Sec. 113.5  Responsibilities.

    (a) The Under Secretary of Defense for Personnel and Readiness shall 
monitor compliance with this part.
    (b) The Under Secretary of Defense (Comptroller) shall ensure 
Defense Finance and Accounting Service (DFAS) implementation of this 
part.
    (c) The Heads of the DoD Components shall ensure compliance with 
this part.



Sec. 113.6  Procedures.

    (a) The following procedures apply to the processing of debt 
complaints against members of the Military Services.
    (1) It is incumbent on those submitting indebtedness complaints to 
show that they have met the disclosure requirements of the Truth in 
Lending Act (15 U.S.C. 1601 note, 1601-1614, 1631-1646, 1661-1666j, and 
1667-1667e) and Federal Reserve Board Regulation Z (12 CFR 226), and 
that they complied with the Standards of Fairness (appendix B to this 
part).
    (2) Creditors subject to Federal Reserve Board Regulation Z (12 CFR 
226), and assignees claiming thereunder, shall submit with their debt 
complaint an executed copy of the Certificate of Compliance (appendix A 
to this part), and a true copy of the general and specific disclosures 
provided the member of the Military Service as required by the Truth in 
Lending Act (15 U.S.C. 1601 note, 1601-1614, 1631-1646, 1661-1666j, and 
1667-1667e). Debt complaints that request assistance but do not meet 
these requirements will be returned without action to the claimant.
    (3) A creditor not subject to Federal Reserve Board Regulation Z (12 
CFR 226), such as a public utility company, shall submit with the 
request a certificate that no interest, finance charge, or other fee is 
in excess of that permitted by the law of the State in which the 
obligation was incurred.
    (4) A foreign-owned company having debt complaints shall submit with 
its request a true copy of the terms of the debt (English translation) 
and shall certify that it has subscribed to the Standards of Fairness 
(appendix B to this part).
    (5) Debt complaints that meet the requirements of this part shall be 
processed by Department of Defense Components. ``Processed'' means that 
Heads of the Department of Defense Components, or designees, shall:
    (i) Review all available facts surrounding the transaction forming 
the basis of the complaint, including the member's legal rights and 
obligations, and any defenses or counterclaims the member may have.
    (ii) Advise the member concerned that:
    (A) Just financial obligations are expected to be paid in a proper 
and timely manner, and what the member should do to comply with that 
policy;

[[Page 604]]

    (B) Financial and legal counseling services are available under DoD 
Directive 1344.7 \3\ in resolving indebtedness; and
---------------------------------------------------------------------------

    \3\ See footnote 1 to Sec. 113.3(b).
---------------------------------------------------------------------------

    (C) That a failure to pay a just debt may result in the creditor 
obtaining a judgment from a court that could form the basis for 
collection of pay from the member pursuant to an involuntary allotment.
    (iii) If a member acknowledges a debt as a result of creditor 
contact with a DoD Component, advise the member that assistance and 
counseling may be available from the on-base military banking office, 
the credit union serving the military field of membership, or other 
available military community service organizations.
    (iv) Direct the appropriate commander to advise the claimant that:
    (A) Those aspects of DoD policy prescribed in 32 CFR part 112.4, are 
pertinent to the particular claim in question; and
    (B) The member concerned has been advised of his or her obligations 
on the claim.
    (v) The commander's response to the claimant shall not undertake to 
arbitrate any disputed debt, or admit or deny the validity of the claim. 
Under no circumstances shall the response indicate whether any action 
has been taken, or will be taken, against the member as a result of the 
complaint.
    (b) The following procedures apply to the processing of involuntary 
allotments from the pay of members of the Military Services.
    (1) Involuntary allotment application. (i) Regardless of the Service 
Affiliation of the member involved, with the exception of members of the 
Coast Guard an application to establish an involuntary allotment from 
the pay of a member of the Military Services shall be made by sending a 
completed DD Form 2653, ``Involuntary Allotment Application'' (appendix 
C to this part) to the appropriate address listed below. Applications 
sent to any other address shall be returned without action to the 
applicant.

(For Army, Navy, Air Force, or Marine Corps)

Defense Finance and Accounting Service, Cleveland Center, Code L, P.O. 
    Box 998002, Cleveland, OH 44199-8002

(For Coast Guard only)

Coast Guard Pay and Personnel Center (LGL), 444 S.E. Quincy Street, 
    Topeka, KS 66683-3591

    (ii) Each application must include a copy of the final judgment 
certified by the clerk of court and such other documents as may be 
required by Sec. 113.6(b)(1)(iv).
    (iii) A garnishment summons or order is insufficient to satisfy the 
final judgment requirement of Sec. 113.6(b)(1)(ii) and is not required 
to apply for an involuntary allotment under this part.
    (iv) Involuntary allotment applications must contain the following 
information, certifications, and acknowledgment:
    (A) The full name, social security number, and branch of Service of 
the military member against whose pay an involuntary allotment is 
sought. Although not required, inclusion of the member's current duty 
station and duty address on the application form will facilitate 
processing of the application.
    (B) The applicant's full name and address. If the applicant is not a 
natural person, the application must be signed by an individual with the 
authority to act on behalf of such entity. If the allotment is to be in 
favor of a person other than the original judgment holder, proof of the 
right to succeed to the interest of the original judgment holder is 
required and must be attached to the application.
    (C) The dollar amount of the judgment. Additionally, if the judgment 
awarded interest, the total dollar amount of the interest on the 
judgment accrued to the date of application.
    (D) A certification that the judgment has not been amended, 
superseded, set aside, or satisfied; or, if the judgment has been 
satisfied in part, the extent to which the judgment remains unsatisfied.
    (E) A certification that the judgment was issued while the member 
was not on active duty (in appropriate cases). If the judgment was 
issued while the member was on active duty, a certification that the 
member was present or

[[Page 605]]

represented by an attorney of the member's choosing in the proceedings, 
or if the member was not present or represented by an attorney of the 
member's choosing, that the judgment complies with the Soldiers' and 
Sailors' Civil Relief Act of 1940, as amended (50 U.S.C. appendix 
sections 501-591).
    (F) A certification that the member's pay could be garnished under 
applicable State law and section 5520a(k) of the United States Code, if 
the member were a civilian employee.
    (G) A certification that, to the knowledge of the applicant, the 
debt has not been discharged in bankruptcy, nor has the member filed for 
protection from creditors under the bankruptcy laws of the United 
States.
    (H) A certification that if the judgment is satisfied prior to the 
collection of the total amount through the involuntary allotment 
process, the applicant will provide prompt notice that the involuntary 
allotment must be discontinued.
    (I) A certification that if the member overpays the amount owed on 
the judgment, the applicant shall refund the amount of overpayment to 
the member within 30 days of discovery or notice of the overpayment, 
whichever, is earlier, and that if the applicant fails to repay the 
member, the applicant understands he or she may be denied the right to 
collect by involuntary allotment on other debt reduced to judgments.
    (J) Acknowledgment that as a condition of application, the applicant 
agrees that neither the United States, nor any disbursing official or 
Federal employee whose duties include processing involuntary allotment 
applications and payments, shall be liable for any payment or failure to 
make payment from moneys due or payable by the United States to any 
person pursuant to any application made in accordance herewith.
    (v) The original and three copies of the application and supporting 
documents must be submitted by the applicant to DFAS.
    (vi) A complete ``application package'' (the DD Form 2653, 
supporting documentation, and three copies of the application and 
supporting documents), is required for processing of any request to 
establish an involuntary allotment pursuant to this part and 32 CFR part 
112.
    (vii) Applications that do not conform to the requirements of this 
part shall not be processed. If an application is ineligible for 
processing, the application package shall be returned to the applicant 
with an explanation of the deficiency. In cases involving repeated false 
certifications by an applicant, the designated DFAS official may refuse 
to accept or process additional applications by that applicant for such 
period of time as the official deems appropriate to deter against such 
violations in the future.
    (2) Processing of involuntary allotment applications. (i) Promptly 
upon receipt of DD Form 2653 (Appendix C to this part), the designated 
DFAS official shall review the ``application package'' to ensure 
compliance with the requirements of this part. If the application 
package is complete, the DFAS official shall:
    (A) Complete Section I of DD Form 2654, ``Involuntary Allotment 
Notice and Processing'' (Appendix D to this part), by inserting the 
name, social security number, rank, and branch of service of the 
military member against whom an application for involuntary allotment is 
being processed. Additionally, the DFAS official shall provide the due 
date for receipt of a response at DFAS. The due date shall be 90 days 
from the date DFAS mails the DD Form 2654 to the commander and member 
concerned as provided for in Sec. 113.6(b)(2)(i)(B).
    (B) Mail one copy of the application package to the member and two 
copies of the application package, along with DD Form 2654, to the 
commander of the military member or other official as designated by the 
Military Service concerned during times of war, national emergency, 
deployment, or other similar circumstances, who may act for the 
commander, provided the Military Service concerned has provided DFAS 
with the name or position of the official and the appropriate address 
(hereinafter, the meaning of the term ``commander'' includes such other 
official).
    (C) Within 60 days of mailing the copies of the application package 
and DD Form 2654, DFAS shall provide notice

[[Page 606]]

to the member and the member's commander that automatic processing of 
the involuntary allotment application shall occur if a response 
(including notice of an approved extension as authorized in 
Sec. 113.6(b)(2)(iii)(B) and (F), is not received by the due date 
specified in Section I of DD Form 2654. In the absence of a response, 
DFAS may automatically process the involuntary allotment application on 
the fifteenth calendar day after the date a response was due. When DFAS 
has received notice of an extension, automatice processing shall not 
begin until the fifteenth calendar day after the approved extension 
date.
    (D) Retain the original of the application package and DD Form 2654.
    (ii) Upon receipt of an application, the commander shall determine 
if the member identified in Section I of DD Form 2654 is assigned or 
attached to the commander's unit and available to respond to the 
involuntary allotment application. If the member is not assigned or 
attached, or not available to respond (e.g., retired, in a prisoner of 
war status, or in a missing in action status), the commander will 
promptly complete Section II of DD Form 2654 and attach appropriate 
documentation supporting the determination. The commander will then mail 
the application package and DD Form 2654 to DFAS. Section II shall also 
be used by the commander to notify DFAS of extensions beyond the due 
date for a response contained in Section I of DD Form 2654. When such 
extensions are authorized, the commander will complete Section II, make 
a copy of Sections I and II, and promptly mail the copy to DFAS.
    (iii) Within 5 days of receipt of an application package and DD Form 
2654 from the designated DFAS official, the commander shall notify the 
member of the receipt of the application, provide the member a copy of 
the entire application package, and counsel the member using and 
completing Section III of DD Form 2654 about the following:
    (A) That an application for the establishment of an involuntary 
allotment for the lesser of 25 percent of the member's pay subject to 
involuntary allotment or the maximum percentage of pay subject to 
garnishment proceedings under the applicable State law has been 
received.
    (B) That the member has 15 calendar days from the date of receipt of 
the commander's notice to complete Section IV of DD Form 2654. That for 
good cause shown, the commander may grant an extension of reasonable 
time (normally not exceeding 30 calendar days) to submit a response. 
That during times of deployment, war, national emergency, assignment 
outside the United States, hospitalization, or other similar situations 
that prevent the member from obtaining necessary evidence or from 
responding in a timely manner, extensions exceeding 30 calendar days may 
be granted. That if the member fails to respond within the time allowed, 
the commander will note the member's failure to respond in Section V of 
DD Form 2654 and send the form to DFAS for appropriate action.
    (C) That the member's response will either consent to the 
involuntary allotment or contest it.
    (D) That the member may contest the application for any one of the 
following reasons:
    (1) There has not been compliance with the procedural requirements 
of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (50 
U.S.C. appendix sections 501-591) during the judicial proceeding upon 
which the involuntary allotment application is sought.
    (2) ``Exigencies of military duty'' (as defined in 32 CFR part 
112.3(d)) caused the ``absence'' of the member from appearance in a 
judicial proceeding forming the basis for the judgment upon which the 
application is sought.
    (3) Information in the application is patently false or erroneous in 
material part.
    (4) The judgment has been fully satisfied, superseded, or set aside.
    (5) The judgment has been materially amended, or partially 
satisfied. When asserting this defense, the member shall include 
evidence of the amount of the judgment that has been satisfied.
    (6) There is a legal impediment to the establishment of the 
involuntary allotment (for example, the judgment debt has been 
discharged in bankruptcy, the judgment debtor has filed for protection 
from the creditors under the bankruptcy laws of the United States, the

[[Page 607]]

applicant is not the judgment holder nor a proper successor in interest 
to that holder, or the applicant has been enjoined by a Federal or state 
court from enforcing the judgment debt).
    (7) Or other appropriate reasons that must be clearly specified and 
explained by the member.
    (E) That, if the member contests the involuntary allotment, the 
member shall provide evidence (documentary or otherwise) in support 
thereof. Furthermore, that any evidence submitted by the member may be 
disclosed to the applicant for the involuntary allotment.
    (F) That the member may consult with a legal assistance attorney, if 
reasonably available, or a civilian attorney at no expense to the 
government. That if a legal assistance attorney is available, the member 
should immediately arrange for an appointment. That the member may 
request a reasonable delay from the commander to obtain legal assistance 
(in cases where an approved delay will cause DFAS to receive the 
member's response after the due date identified in Section I of DD Form 
2654, the commander must immediately notify the designated DFAS official 
of the delay, the date for an expected response, and the reason for the 
delay by completing Section II of DD Form 2654 and forwarding a copy of 
Sections I and II to DFAS). Additionally, that requests for extensions 
of time based on the need for legal assistance shall be denied to 
members who fail to exercise due diligence in seeking such assistance.
    (G) That if the member contests the involuntary allotment on the 
grounds that exigencies of military duty caused the absence of the 
member from the judicial proceeding at which the judgment was rendered, 
then the member's commander shall review and make the final 
determination on this contention, and notify the designated DFAS 
official of the commander's decision by completing Section V of DD Form 
2654 and forwarding the form to DFAS.
    (1) In determining whether exigencies of military duty caused the 
absence of the member, the commander at the level designated by the 
Service concerned shall consider the definition of ``exigencies of 
military duty'' (as defined in 32 CFR part 112.3(d)).
    (2) Additionally, consideration shall be given to whether the 
commander at the time determined the military duties in question to be 
of such paramount importance that they prevented making the member 
available to attend the judicial proceedings, or rendered the member 
unable to timely respond to process, motions, pleadings, or orders of 
the court.
    (H) That if the member contests the involuntary allotment on any 
basis other than exigencies of military duty, the application package 
and DD Form 2654 shall be returned to the commander who shall forward it 
to the designated DFAS official for appropriate action.
    (I) That if the member fails to respond to the commander within the 
time allowed under Sec. 113.6(b)(2)(iii)(B), the commander shall notify 
the designated DFAS official of the member's failure to respond by 
completing Section V of DD Form 2654, and forwarding the form to DFAS.
    (iv) After counseling the member in accordance with 
Sec. 113.6(b)(2)(iii)(A)-(I), the commander shall:
    (A) Date and sign Section III of DD Form 2654.
    (B) Obtain the member's acknowledgment of counseling by having the 
member sign the appropriate space on Section III of DD Form 2654.
    (C) Determine if the member consents to the involuntary allotment or 
needs the time authorized under this part to review the application 
package and take appropriate action. If the member consents to the 
involuntary allotment, the commander shall direct the member to 
appropriately complete Section IV of DD Form 2654. The commander must 
then complete the appropriate item in Section V and promptly forward the 
completed DD Form 2654 to the designated DFAS official.
    (D) Complete the appropriate items in Section V of DD Form 2654 when 
the member fails to respond within the time authorized for a response, 
or asserts that exigencies of military duty caused the absence of the 
member from an appearance in the judicial proceeding upon which the 
Involuntary Allotment Application is sought.
    (1) In determining whether exigencies of military duty caused the 
absence of

[[Page 608]]

the member, the commander, at the level designated by the Service 
concerned, shall consider the definition of ``exigencies of military 
duty'' (as defined in 32 CFR part 112.3(d)), the evidence provided by 
the member, any other reasonably available evidence (e.g., a copy of the 
member's personnel record), and whether the commander at the time 
determined the military duties in question to be of such paramount 
importance that they prevented making the member available to attend the 
judicial proceedings, or rendered the member unable to timely respond to 
process, motions, pleadings, or orders of the court.
    (2) The evidentiary standard for a commander to determine whether 
existences of military duty caused the absence of the member from an 
appearance in the judicial proceeding upon which the Involuntary 
Allotment Application is sought is a ``preponderance of the evidence'' 
(as defined in Sec. 113.3(d) of this part).
    (3) If the commander has made a determination on exigencies of 
military duty, the commander must insert in Section V of DD Form 2654, 
the title and address of the appeal authority.
    (E) Promptly following the date the member's response is due to the 
commander as determined by Sec. 113.6(b)(2)(iii)(B), ensure that the DD 
Form 2654 is appropriately completed and mail the form, along with any 
response received from the member, to DFAS.
    (F) Provide the member a copy of the completed DD Form 2654 within 5 
days of mailing to the designated DFAS official.
    (v) Upon receipt of DD Form 2654 and any additional evidence 
submitted by the member, the designated DFAS official shall conduct a 
review of the entire application package, DD Form 2654, and any evidence 
submitted by the member, to determine whether the application for an 
involuntary allotment should be approved and established.
    (A) In those cases where the member's commander has completed 
Section V of DD Form 2654, and determined that exigencies of military 
duty caused the absence of the member from an appearance in a judicial 
proceeding upon which the involuntary allotment application is sought, 
the designated DFAS official shall deny the involuntary allotment 
application and provide the applicant written notice of the denial and 
the reason therefor. The designated DFAS official shall also advise the 
applicant that:
    (1) The responsibility for determining whether exigencies of 
military duty existed belonged to the member's commander and the 
Military Department concerned.
    (2) The commander's decision may be appealed within 60 days of the 
date DFAS mailed the notice of the decision to the applicant.
    (3) An Appeal must be submitted to the appeal authority at the 
address provided by DFAS (as found in Section V of the DD Form 2654) in 
their written notice of denial, and that an appeal submitted to an 
appeal authority and address different from the one provided by DFAS may 
be returned without action.
    (4) An appeal must be submitted in writing and contain sufficient 
evidence to overcome the presumption that the commander's exigency 
determination was correct.
    (5) The appellate authority shall decide an appeal within 30 days of 
its receipt and promptly notify the applicant in writing of the 
decision. The 30 day decision period may be extended during times of 
deployment, war, national emergency, or other similar situations.
    (6) If an appeal is successful, the applicant must submit a written 
request, along with a copy of the appellate authority's decision, to 
DFAS within 15 days of receipt of the appellate authority's decision.
    (B) Upon receiving written notice that an applicant has successfully 
appealed a commander's determination on exigencies of military duty that 
resulted in denial of an involuntary allotment application, DFAS shall 
review the application in accordance with Sec. 113.6(b)(2)(v)(C), and 
determine whether the involuntary allotment should be approved and 
initiated.
    (C) In all cases, other than as described in Sec. 113.6(b)(2)(v)(A), 
the designated DFAS official shall deny an involuntary allotment 
application, and

[[Page 609]]

give written notice to the applicant of the reason(s) for denial, if the 
designated DFAS official determines that:
    (1) There has not been compliance with the procedural requirements 
of the Soldier's and Sailor's Civil Relief Act of 1940, as amended (50 
U.S.C. appendix sections 501-591) during the judicial proceeding upon 
which the involuntary allotment application is sought.
    (2) Information in the application is patently false or erroneous in 
material part.
    (3) The judgment has been fully satisfied, superseded, or set aside.
    (4) The judgment has been materially amended, or partially 
satisfied. In such a case, the request for involuntary allotment may be 
approved only to satisfy that portion of the judgment that remains in 
effect and unsatisfied; the remainder of the request shall be denied.
    (5) There is a legal impediment to the establishment of the 
involuntary allotment (for example, the judgment debt has been 
discharged in bankruptcy, the judgment debtor has filed for protection 
from the creditors under the bankruptcy laws of the United States, the 
applicant is not the judgment creditor nor a proper successor in 
interest to that creditor, or the applicant has been enjoined by a 
Federal or State court from enforcing the judgment debt).
    (6) The member's pay is already subject to one or more involuntary 
allotments or garnishments that equal the lesser of 25 percent of the 
member's pay subject to involuntary allotment or the maximum percentage 
of pay subject to garnishment proceedings under the applicable State 
law.
    (7) The applicant has abused the processing privilege (e.g., an 
applicant, having been notified of the requirements of this part, 
repeatedly refuses or fails to comply therewith).
    (8) Or other appropriate reasons that must be clearly explained to 
the applicant.
    (D) In all cases other than as described in Sec. 113.6(b)(2)(v) (A) 
and (C), the designated DFAS official shall approve the involuntary 
allotment application and establish an involuntary allotment against the 
pay subject to involuntary allotment of the member.
    (vi) The designated DFAS official shall, at any time after 
establishing an involuntary allotment, cancel or suspend such allotment 
and notify the applicant of that cancellation if the member concerned, 
or someone acting on his or her behalf, submits legally sufficient 
proof, by affidavit or otherwise, that the allotment should not continue 
because of the existence of the factors enumerated in 
Sec. 113.6(b)(2)(v)(A) and (C)(1)-(8).
    (3) Payments
    (i) Payment of an approved involuntary allotment under 32 CFR part 
112 and this part shall commence within 30 days after the designated 
DFAS official has approved the involuntary allotment.
    (ii) Payments under this part shall not be required more frequently 
than once each month, and the designated official shall not be required 
to vary normal pay and disbursement cycles.
    (iii) If the designated DFAS official receives several applications 
on the same member of a Military Service, payments shall be satisfied on 
a first-come, first-served basis.
    (iv) Payments shall continue until the judgment is satisfied or 
until canceled or suspended.
    (A) DFAS shall collect the total judgment, including interest when 
awarded by the judgment. Within 30 days following collection of the 
amount of the judgment, including interest as annotated by the applicant 
in Section I of DD Form 2654, the applicant may submit a final statement 
of interest that accrued during the pay-off period. This final statement 
of interest request must be accompanied by a statement of account 
showing how the applicant computed the interest amount. DFAS will 
collect this post-application interest provided it is an amount owed 
pursuant to the judgment. DFAS shall not accept any further interest 
requests.
    (B) Interest or other costs associated with the debt forming the 
basis for the judgment, but not included as an amount awarded by the 
judgment, shall not be paid to applicants for involuntary allotments.
    (v) If the member is found not to be entitled to money due from or 
payable

[[Page 610]]

by the Military Services, the designated official shall return the 
application and advise the applicant that no money is due from or 
payable by the Military Service to the member. When it appears that pay 
subject to an involuntary allotment is exhausted temporarily or 
otherwise unavailable, the applicant shall be told why and for how long 
that money is unavailable, if known. Involuntary allotments shall be 
canceled on or before the date a member retires, is discharged, or is 
released from active duty. The designated DFAS official shall notify the 
applicant of the reason for cancellation.
    (vi) Upon receiving notice from an applicant that a judgment upon 
which an involuntary allotment is based has been satisfied, vacated, 
modified, or set aside, the designated DFAS official shall promptly 
adjust or discontinue the involuntary allotment.
    (vii) The Under Secretary of Defense (Comptroller) may, in DoD 
7000.14-R \4\ Volume 7, Part A, designate the priority to be given to 
involuntary allotments pursuant to 32 CFR part 112 and this part, among 
the deductions and collections taken from a member's pay, except that 
they may not give precedence over deductions required to arrive at a 
member's disposable pay for garnishments or involuntary allotments 
authorized by statute for alimony and child support payments. In the 
absence of a contrary designation by the Comptroller, all other lawful 
deductions (except voluntary allotments by the member) and collections 
shall take precedence over these involuntary allotments.
---------------------------------------------------------------------------

    \4\ See footnote 1 to Sec. 113.3(b).
---------------------------------------------------------------------------

            Appendix A to Part 113--Certificate of Compliance

    I certify that the (Name of Creditor) upon extending credit

 to_____________________________________________________________________

 on_____________________________________________________________________
(Date)

complied with the full disclosure requirements of the Truth-in-Lending 
Act and Regulation Z, and the Fair Debt Collection Practices Act (or the 
laws and regulations of State of ____________________), and that the 
attached statement is a true copy of the general and specific 
disclosures provided the obligor as required by law.
    I further certify that the Standards of Fairness set forth in DoD 
Directive 1344.9 \1\ have been applied to the consumer credit 
transaction to which this form refers. (If the unpaid balance has been 
adjusted as a consequence, the specific adjustments in the finance 
charge and the annual percentage rate should be set forth below.)

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

 _______________________________________________________________________
(Adjustments)

 _______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

(Date of Certification)_________________________________________________


 _______________________________________________________________________
(Signature of Creditor or Authorized Representative)

 _______________________________________________________________________
(Street)

 _______________________________________________________________________
(City, State and Zip Code)

              Appendix B to Part 113--Standards of Fairness

    1. No finance charge contracted for, made, or received under any 
contract shall be in excess of the charge that could be made for such 
contract under the law of the place in which the contract is signed in 
the United States by the military member.
    a. In the event a contract is signed with a U.S. company in a 
foreign country, the lowest interest rate of the State or States in 
which the company is chartered or does business shall apply.
    b. However, interest rates and service charges applicable to 
overseas military banking facilities shall be as established by the 
Department of Defense.
    2. No contract or loan agreement shall provide for an attorney's fee 
in the event of default unless suit is filed, in which event the fee 
provided in the contract shall not exceed 20 percent of the obligation 
found due. No attorney fees shall be authorized if the attorney is a 
salaried employee of the holder.
    3. In loan transactions, defenses that the debtor may have against 
the original lender or its agent shall be good against any subsequent 
holder of the obligation. In credit transactions, defenses against the 
seller or its agent shall be good against any subsequent holder of the 
obligation, provided that the holder had actual knowledge of the defense 
or under conditions where reasonable inquiry would have apprised the 
holder of this fact.

[[Page 611]]

    4. The military member shall have the right to remove any security 
for the obligation beyond State or national boundaries if the military 
member or family moves beyond such boundaries under military orders and 
notifies the creditor, in advance of the removal, of the new address 
where the security will be located. Removal of the security shall not 
accelerate payment of the obligation.
    5. No late charge shall be made in excess of 5 percent of the late 
payment, or $5.00, whichever is the lesser amount, or as provided by law 
or applicable regulatory agency determination. Only one late charge may 
be made for any tardy installment. Late charges shall not be levied 
where an allotment has been timely filed, but payment of the allotment 
has been delayed. Late charges by overseas banking facilities are a 
matter of contract with the Department of Defense.
    6. The obligation may be paid in full at any time or through 
accelerated payments of any amount. There shall be no penalty for 
prepayment. In the event of prepayment, that portion of the finance 
charges that has inured to the benefit of the seller or creditor shall 
be prorated on the basis of the charges that would have been ratably 
payable had finance charges been calculated and payable as equal 
periodic payments over the terms of the contract, and only the prorated 
amount to the date of prepayment shall be due. As an alternative, the 
``Rule of 78'' may be applied.
    7. If a charge is made for loan insurance protection, it must be 
evidenced by delivery of a policy or certificate of insurance to the 
military member within 30 days.
    8. If the loan or contract agreement provides for payments in 
installation, each payment, other than the down payment, shall be in 
equal or substantially equal amounts, and installments shall be 
successive and of equal or substantially equal duration.
    9. If the security for the debt is repossessed and sold in order to 
satisfy or reduce the debt, the repossession and resale shall be 
governed by the laws of the State in which the security is requested.
    10. A contract for personal goods and services may be terminated at 
any time before delivery of the goods or services without charge to the 
purchaser. However, if goods made to the special order of the purchaser 
result in preproduction costs, or require preparation for delivery, such 
additional costs shall be listed in the order form or contract.
    a. No termination charge shall be made in excess of this amount. 
Contracts for delivery at future intervals may be terminated as to the 
undelivered portion.
    b. The purchaser shall be chargeable only for that proportion of the 
total cost that the goods or services delivered bear to the total goods 
called for by the contract. (This is in addition to the right to rescind 
certain credit transactions involving a security interest in real estate 
provided by the Truth in Lending Act (15 U.S.C. 1601 note, 1601-1614, 
1631-1646, 1661-1665a, 1666-1666j, and 1667-1667e) and Federal Reserve 
Board Regulation Z (12 CFR 226)).

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PART 114--RESERVE COMPONENTS COMMON PERSONNEL DATA SYSTEM (RCCPDS)--Table of Contents




Sec.
114.1  Purpose.
114.2  Applicability and scope.
114.3  Policy.
114.4  Responsibilities.
114.5  Procedures.
114.6  Information requirements.

Appendix A to Part 114--Coding Instructions--Master File, DD-RA (M) 1147
Appendix B to Part 114--Transaction and Editing Procedures for 
          Submission Tapes
Appendix C to Part 114--Coding Instructions--Transaction File, DD-RA (M) 
          1148
Appendix D to Part 114--General Specifications for Submission Tapes
Appendix E to Part 114--Quality Control Edit--Master File, DD-RA (M) 
          1147
Appendix F to Part 114--Quality Control Edit--Transaction File, DD-RA 
          (M) 1148
Appendix G to Part 114--Glossary
Appendix H to Part 114--Record Layout Reserve Components Common 
          Personnel Data System (RCCPDS)

    Authority: 10 U.S.C. 261, 267, 275, 511, 651, 652, 671, 1331, 6330, 
and 8914.

    Source: 56 FR 18699, Apr. 24, 1991, unless otherwise noted.



Sec. 114.1  Purpose.

    This part updates policy and standardize data elements affecting the 
RCCPDS.



Sec. 114.2  Applicability and scope.

    This part applies to: (a) The Office of the Secretary of Defense 
(OSD); the Military Departments (including their National Guard and 
Reserve components); the Chairman, Joint Chiefs of Staff and Joint 
Staff; the Defense Agencies; and the U.S. Coast Guard, by agreement with 
the Department of Transportation (DoT), when it is not operating as a 
military service in the Navy.
    (b) All officers, warrant officers, and enlisted personnel assigned 
to the Ready Reserve, the Standby Reserve, and the Retired Reserve. 
Reservists on Active Duty for Training (ADT) who continue their 
assignment with a Reserve component are included. Reserve Officer 
Training Corps (ROTC) members, who are not members of the Simultaneous 
Membership Program (SMP), are excluded. Also excluded are individuals 
who have elected discharge after 20 creditable years instead of transfer 
to the Retired Reserve. The Defense Manpower Data Center (DMDC) shall 
maintain an historical file on those individuals.
    (c) Enlisted members of an active component, who also hold a Reserve 
commission, shall not be reported in the RCCPDS.
    (d) Service members on Extended Active Duty (EAD) who are part of 
the active component or assigned to the Selective Service System (SSS) 
shall not be reported. (That does not include Service members identified 
in Sec. 114.5(a)(1)).



Sec. 114.3  Policy.

    (a) The RCCPDS is the computerized common data base established to 
meet the policy requirements and to provide statistical tabulations of 
Reserve components' strengths and related data for use throughout the 
Department of Defense, other Government Agencies, the Congress, and for 
appropriate public release by the Assistant Secretary of Defense (Public 
Affairs) (ASD(PA)) (DoD Directive 1205.17 \1\).
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    (b) The requirements and procedures prescribed by 32 CFR part 286a 
must be followed to safeguard the personnel data maintained in that 
reporting system. Individuals having access to identifiable personnel 
information may be held personally responsible and punishable under the 
law for making unauthorized disclosures.



Sec. 114.4  Responsibilities.

    (a) The Assistant Secretary of Defense (Reserve Affairs) (ASD(RA)) 
shall:
    (1) Establish policy and provide guidance for Reserve Component 
Categories (RCCs), personnel transaction accounting, personnel data 
items, definitions, and accuracy standards.
    (2) Provide policy guidance to the DMDC on the content and use of 
the RCCPDS including data fields, definitions, frequency, format, and 
the content of periodic and special RCCPDS

[[Page 619]]

reports, in accordance with responsibilities detailed in DoD Directives 
1205.17 and 32 CFR part 379.
    (3) Revise and maintain this part, as necessary, to update data 
requirements and provide accurate and effective guidance on personnel 
data management to the Military Departments and their Reserve 
components.
    (b) The Assistant Secretary of Defense (Force Management and 
Personnel) (ASD(FM&P)) shall:
    (1) Ensure that Reserve component military personnel information 
requirements for acturial valuations and for effective Total Force 
military personnel management are identified to the ASD(RA).
    (2) Exercise such policy guidance and management supervision for the 
DMDC, consistent with ASD(FM&P) responsibilities in 32 CFR part 384, as 
required, to ensure that adequate resources are available and used by 
the DMDC to fulfill its responsibilities.
    (c) The Director, DMDC shall:
    (1) Operate and maintain the RCCPDS, to include computer support, 
software development, quality control, inquiry capabilities, and 
administrative support.
    (2) Develop, produce, and distribute all periodic and special RCCPDS 
reports.
    (3) Provide programming and analytical support to the ASD(RA) for 
special studies requiring use of the RCCPDS.
    (4) Modify the RCCPDS to reflect the changing nature of the Reserve 
components.
    (5) Inform the ASD(RA) of data produced from the RCCPDS for other 
users and of the state and quality of the information submitted by the 
Reserve components.
    (d) The Secretaries of the Military Departments and the Commandant 
of the U.S. Coast Guard (USCG) shall:
    (1) Provide their respective Reserve components with the support 
necessary to maintain a personnel data system.
    (2) Prepare at the end of each month, and submit within 20 calendar 
days, a ``Master Officer File'' and ``Master Enlisted File'' reflecting 
the status of each member of the Reserve component as of the last day of 
each month, as stated in Appendix A to this part.
    (3) Prepare at the end of each month, and submit wthin 20 calendar 
days, an ``Officer Transaction File'' and an ``Enlisted Transaction 
File'' reflecting the gains, losses, reenlistments, extensions, and 
transfers of Reserve component personnel that occurred during the 
reporting month, as stated in Appendix C to this part. Transactions 
processed within 45 days of effective day shall not be considered late, 
due to data lag.
    (4) Edit monthly submissions according to the editing concept 
defined in appendix B to this part.
    (5) Perform a quality control validation of the data before 
submission to the OSD.



Sec. 114.5  Procedures.

    (a) The following categories of Full-Time Support (FTS) personnel 
shall be reported in the RCCPDS:
    (1) Active Guard and/or Reserve (AGR). Guardsmen and Reservists on 
active duty to provide full time support to the Ready Reserve and who 
are paid from the Reserve personnel appropriations of the Military 
Department concerned.
    (2) Military Technicians. Federal civilian personnel of a Military 
Department, who occupy military technician positions and are members of 
the Reserve component that they support.
    (b) As the official DoD vehicle for reporting Reserve component 
manpower strengths, records reported in RCCPDS (as prescribed in 
Sec. 114.4(d) (2) and (3)) may not be duplicated in other DoD-wide 
strength reporting systems. Additionally, to support the accuracy of 
strength data in the system, the DoD Components shall ensure that:
    (1) All strength-effecting changes are processed and repored without 
delay.
    (2) All master and transaction files are edited before submission 
following the procedures in appendix C to this part.
    (c) Requests to provide specifically tailored reports and inquiries 
to system users shall be directed to the address in paragraph (g) of 
this section. A Reserve component may not be provided data relative to 
another Reserve component without prior approval of that Reserve 
component.
    (d) Any information available to the RCCPDS required by the SSS and 
the

[[Page 620]]

Department of Veterans' Affairs (VA) shall be provided by magnetic tape 
extracts of data submitted in compliance with this part.
    (e) Information from the RCCPDS shall be provided annually to 
Federal Agencies screening employees who are also Reserve component 
members, as prescribed by 32 CFR part 44.
    (f) RCCPDS data validity shall be ensured, as follows:
    (1) The following shall be critical data for all Reserve component 
members, and the goal shall be 100-percent validity to ensure 
acceptability in the system appendix A to this part.

----------------------------------------------------------------------------------------------------------------
             Record field                             Data field                         Record position        
----------------------------------------------------------------------------------------------------------------
1....................................  Reserve Component......................  1 through 2.                    
2a...................................  Reserve Component Category Designator..  3.                              
2b...................................  Reserve Component Training-Retirement    4.                              
                                        Category Designator.                                                    
3....................................  Social Security Number.................  5 through 13.                   
92...................................  Transaction Codes......................  399 through 400.                
----------------------------------------------------------------------------------------------------------------

    (2) Each of the following (as applicable in each Reserve Component 
Category) shall have as a goal at least 98-percent validity:

----------------------------------------------------------------------------------------------------------------
             Record field                             Data field                         Record position        
----------------------------------------------------------------------------------------------------------------
6....................................  Name, Individual.......................  24 through 50.                  
7....................................  Date of Birth..........................  51 through 56.                  
8....................................  Sex....................................  57.                             
11...................................  Marital Status.........................  60.                             
13...................................  Educational Designator.................  63.                             
17...................................  Date of Rank...........................  155 through 160.                
18...................................  Pay Grade, Uniformed Services..........  161 through 163.                
19...................................  Pay Entry Base Date (PEBD).............  164 through 169.                
35(a) through (d)....................  Multiple Reporting: Date of Appointment  229 through 234.                
                                        and/or Date of Expiration of                                            
                                        Enlistment in Ready Reserve.                                            
40...................................  Armed Forces Qualification Test (AFQT)   243 through 244.                
                                        Percentile Score (Enlisted ONLY).                                       
46...................................  Military Unit Designator (Unit           251 through 258.                
                                        Identification Code).                                                   
47...................................  States of the United States, and         259 through 260.                
                                        Countries (Unit).                                                       
48...................................  National Zoning Improvement Plan (Unit   261 through 269.                
                                        Zip Code).                                                              
66 (a), (b)..........................  Year and Month, Reserve Component        311 through 314.                
                                        Incentive Program Eligibility                                           
                                        Effective Date.                                                         
67...................................  Reserve Component Incentive Program      315.                            
                                        Type.                                                                   
68...................................  Reserve Component Incentive Program      316.                            
                                        Educational Type.                                                       
70...................................  Active Component ``Montgomery GI Bill    323.                            
                                        (MGIB)'' Enrollment status (38 U.S.C.                                   
                                        chapter 30.)                                                            
76...................................  Reserve Component MGIB Eligibility       339.                            
                                        Status (10 U.S.C. Chapter 106.).                                        
88...................................  Notification of Eligibility for          385.                            
                                        Military Retired Pay Indicator.                                         
89...................................  Date of Transfer to the Retired Reserve  386 through 391.                
90...................................  Date of Transfer to the Standby Reserve  392 through 397.                
----------------------------------------------------------------------------------------------------------------

    (3) The goal for all remaining data fields shall be:
    (i) 95-percent validity for the Ready Reserve and Standby Reserve.
    (ii) 95-percent validity for the Retired Reserve eligible for pay at 
age 60.
    (4) The data validity rates Sec. 114.6(f) (1) through (3)) shall be 
used as standards for judging the validity of that data base and shall 
be provided to any audit or inspection agency reviewing their accuracy.
    (g) Magnetic tape files and the quality control edit report 
(apendices E and F) to this part shall be delivered by the 20th of the 
month following the previous report period to the following: Defense 
Manpower Data Center, Attn: Reserve File Manager, 99 Pacific Street, 
suite 155-A, Monterey, CA 93940-3231.



Sec. 114.6  Information requirements.

    The reporting requirements for this part are assigned the following 
Report Control Symbols (RCS):
    Master File: DD-RA(M)1147 (See Appendix A to this part).
    Transaction File: DD-RA(M)1148 (See Appendix C to this part).

[[Page 621]]


Standard data elements from DoD 5000.12-M2 \2\ are being used in these 
reporting requirements where applicable.
---------------------------------------------------------------------------

    \2\ See footnote 1 to Sec. 114.3(a).
---------------------------------------------------------------------------

      
      
      

[[Page 622]]

Pt. 114, App. A

                                          Appendix A to Part 114--Coding Instructions--Master File DD-RA(M)1147                                         
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       Applicable to                    
   Record field and data item      Coding and remarks      Record     Length     DoD Std. data   -------------------------------------------------------
                                                          Position    class          Elem.           Sel Res       Irr/Ing      Stnby Res      Ret Res  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                 The arrangement of the  .........  .........  .................  ............  ............  ............  ............
                                  data fields has been                                                                                                  
                                  established in a                                                                                                      
                                  ``Logical User                                                                                                        
                                  View.'' Every effort                                                                                                  
                                  has been made to                                                                                                      
                                  achieve consistency                                                                                                   
                                  and standardization                                                                                                   
                                  of data fields and                                                                                                    
                                  data structure                                                                                                        
                                  throughout this                                                                                                       
                                  Instruction.                                                                                                          
1. Reserve Component...........  ......................        1-2        2 A  .................  X             X             X             X           
  a. Military Service..........  A=U.S. Army (USA).....          1        1 A  DE-NM-AA.........  X             X             X             X           
                                 N=U.D. Navy (USN).....                                                                                                 
                                 M=U.S. Marine Corps                                                                                                    
                                  (USMC).                                                                                                               
                                 F=U.S. Air Force                                                                                                       
                                  (USAF).                                                                                                               
                                 P=U.S. Coast Guard                                                                                                     
                                  (USCG).                                                                                                               
  b. Service Component.........  G=National Guard of             2        1 A  SE-NA-AA.........  X             X             X             X           
                                  the United States.                                                                                                    
                                 V=Reserve.............                                                                                                 
2. Reserve Component Category    (Title 10 U.S.C. 267,         3-4       2 AN  Standard pending.  X             X             X             X           
 (RCC).                           268, 273, and 274,                                                                                                    
                                  (reference h)).                                                                                                       
  a. Reserve Component Category  See DoD Directive               3        1 A  Standard pending.  X             X             X             X           
   Designator (RCCD).             1215.6 (reference                                                                                                     
                                  (j)). Each member                                                                                                     
                                  must be placed in one                                                                                                 
                                  of the following                                                                                                      
                                  RCCs:                                                                                                                 
                                 Ready Reserve--         .........  .........  .................  ............  ............  ............  ............
                                  (Selected Reserve)                                                                                                    
                                 S=Trained in Units--    .........  .........  .................  ............  ............  ............  ............
                                  Those Selected                                                                                                        
                                  Reserve members who                                                                                                   
                                  have completed                                                                                                        
                                  training and are                                                                                                      
                                  assigned to a unit                                                                                                    
                                 T=Trained individuals   .........  .........  .................  ............  ............  ............  ............
                                  (nonunit)--Those                                                                                                      
                                  Selected Reserve                                                                                                      
                                  members who have                                                                                                      
                                  completed training                                                                                                    
                                  and are not assigned                                                                                                  
                                  to a Reserve                                                                                                          
                                  component unit                                                                                                        
                                 U=Training Pipeline--   .........  .........  .................  ............  ............  ............  ............
                                  Those Selected                                                                                                        
                                  Reservists (officers                                                                                                  
                                  and enlisted) who are                                                                                                 
                                  awaiting training,                                                                                                    
                                  including the second                                                                                                  
                                  part of split initial                                                                                                 
                                  active duty for                                                                                                       
                                  training (IADT);                                                                                                      
                                  those Senior ROTC                                                                                                     
                                  members who are in                                                                                                    
                                  Simultaneous                                                                                                          
                                  Membership Program                                                                                                    
                                  (SMP) or Marine Corps                                                                                                 
                                  Platoon Leader Class                                                                                                  
                                  members; nonprior                                                                                                     
                                  service AGR (Navy TAR                                                                                                 
                                  Enlisted Program                                                                                                      
                                  (TEPs) personnel; and                                                                                                 
                                  Selected Reserve                                                                                                      
                                  untrained personnel                                                                                                   
                                  in other training                                                                                                     
                                  programs                                                                                                              
                                 Ready Reserve--         .........  .........  .................  ............  ............  ............  ............
                                  (Individual Ready                                                                                                     
                                  Reserve (IRR)).                                                                                                       
                                 R=IRR--Those            .........  .........  .................  ............  ............  ............  ............
                                  individual members of                                                                                                 
                                  the Ready Reserve not                                                                                                 
                                  in the Selected                                                                                                       
                                  Reserve. Those                                                                                                        
                                  include: Officers                                                                                                     
                                  awaiting active duty                                                                                                  
                                  (AD) or Selected                                                                                                      
                                  Reserve assignment;                                                                                                   
                                  members with previous                                                                                                 
                                  Active Component or                                                                                                   
                                  Selected Reserve                                                                                                      
                                  Service, who have a                                                                                                   
                                  remaining Military                                                                                                    
                                  Service obligation or                                                                                                 
                                  who voluntarily                                                                                                       
                                  extend their service                                                                                                  
                                  in the IRR; untrained                                                                                                 
                                  members of the IRR;                                                                                                   
                                  and those who enlist                                                                                                  
                                  directly into the IRR                                                                                                 

[[Page 623]]

                                                                                                                                                        
                                 P=Ready Reserve         .........  .........  .................  ............  ............  ............  ............
                                  Training--Those                                                                                                       
                                  members of the Ready                                                                                                  
                                  Reserve in a Ready                                                                                                    
                                  Reserve training                                                                                                      
                                  program, including                                                                                                    
                                  those in officer                                                                                                      
                                  training programs;                                                                                                    
                                  those on education                                                                                                    
                                  delay; those in an                                                                                                    
                                  Army Early                                                                                                            
                                  Commissioning                                                                                                         
                                  Program; Coast Guard                                                                                                  
                                  direct commission                                                                                                     
                                  Candidates; Marine                                                                                                    
                                  Corps Platoon Leader                                                                                                  
                                  Class (PLC); those on                                                                                                 
                                  ROTC assignment                                                                                                       
                                  delay; and those in                                                                                                   
                                  Health Professional                                                                                                   
                                  Scholarship Programs                                                                                                  
                                  (HPSP). These members                                                                                                 
                                  have a Ready Reserve                                                                                                  
                                  agreement, are not in                                                                                                 
                                  the Selected Reserve,                                                                                                 
                                  and principally are                                                                                                   
                                  targeted for Active                                                                                                   
                                  component assignments                                                                                                 
                                  on completion of                                                                                                      
                                  their training or                                                                                                     
                                  delay status                                                                                                          
                                 Ready Reserve--         .........  .........  .................  ............  ............  ............  ............
                                  (Inactive National                                                                                                    
                                  Guard (ING))                                                                                                          
                                 I=ING--Those members    .........  .........  .................  ............  ............  ............  ............
                                  of the ING, including                                                                                                 
                                  those members of the                                                                                                  
                                  Army or Air National                                                                                                  
                                  Guard (ARNG and ANG)                                                                                                  
                                  who are unable to                                                                                                     
                                  continue                                                                                                              
                                  participating with                                                                                                    
                                  their National Guard                                                                                                  
                                  units, but are                                                                                                        
                                  authorized to remain                                                                                                  
                                  affiliated with those                                                                                                 
                                  units                                                                                                                 
                                 Standby Reserve         .........  .........  .................  ............  ............  ............  ............
                                 Y=Standby Reserve--     .........  .........  .................  ............  ............  ............  ............
                                  includes members of                                                                                                   
                                  the Standby Reserve                                                                                                   
                                  on both the Active                                                                                                    
                                  Status List and                                                                                                       
                                  Inactive Status List                                                                                                  
                                 Retired Reserve.......          4       1 AN  Standard pending.  X             X             X             X           
                                 V=Retired Reserve                                                                                                      
                                 In accordance with DoD                                                                                                 
                                  Directive 1215.6                                                                                                      
                                  (reference j)) and                                                                                                    
                                  other policy, each                                                                                                    
                                  Service member must                                                                                                   
                                  be placed in one of                                                                                                   
                                  the following RCTRCD:                                                                                                 
b. Reserve Component Training/                                                                                                                          
 Retirement Category Designator                                                                                                                         
 (RCTRCD).                                                                                                                                              
                                 Ready Reserve--                                                                                                        
                                  (Selected Reserve).                                                                                                   
                                 Trained in Units--RCC                                                                                                  
                                  (S)                                                                                                                   
                                 A=Individuals required                                                                                                 
                                  to perform at least                                                                                                   
                                  48 training periods                                                                                                   
                                  annually, are trained                                                                                                 
                                  and assigned to a                                                                                                     
                                  unit.                                                                                                                 
                                 G=Active Guard/Reserve                                                                                                 
                                  (AGR), includes Navy                                                                                                  
                                  Training and                                                                                                          
                                  Administration of the                                                                                                 
                                  Reserves (TARS) and                                                                                                   
                                  Temporary Active Duty                                                                                                 
                                  (TEMAC), paid from                                                                                                    
                                  Reserve personnel                                                                                                     
                                  appropriation, Marine                                                                                                 
                                  Corps Full-Time                                                                                                       
                                  Support (FTS), and                                                                                                    
                                  all other Reserve or                                                                                                  
                                  National Guard                                                                                                        
                                  personnel serving on                                                                                                  
                                  AD, including statury                                                                                                 
                                  tours and full-time                                                                                                   
                                  National Guard duty                                                                                                   
                                  in AC and RC                                                                                                          
                                  organizations.                                                                                                        
                                 Trained Individuals--                                                                                                  
                                  RCC(T)                                                                                                                
                                 B=Individual                                                                                                           
                                  Mobilization                                                                                                          
                                  Augmentees (IMA's)--                                                                                                  
                                  Trained IMAs who                                                                                                      
                                  drill between 0 and                                                                                                   
                                  48 times per year and                                                                                                 
                                  are assigned to                                                                                                       
                                  Active component                                                                                                      
                                  organizations on                                                                                                      
                                  mobilization.                                                                                                         
                                 Training Pipeline--RCC                                                                                                 
                                  (U)                                                                                                                   
                                 F=Personnel currently                                                                                                  
                                  on initial active                                                                                                     
                                  duty for training                                                                                                     
                                  (IADT). Enlisted                                                                                                      
                                  personnel on the                                                                                                      
                                  second part of split                                                                                                  
                                  training and those in                                                                                                 
                                  Army One Station Unit                                                                                                 
                                  Training (OSUT).                                                                                                      
                                 L=Personnel awaiting                                                                                                   
                                  IADT and not                                                                                                          
                                  authorized to perform                                                                                                 
                                  IDT.                                                                                                                  

[[Page 624]]

                                                                                                                                                        
                                 P=Personnel awaiting                                                                                                   
                                  IADT and authorized                                                                                                   
                                  to perform Inactive                                                                                                   
                                  Duty Training (IDT).                                                                                                  
                                  Includes Service                                                                                                      
                                  members with or                                                                                                       
                                  without pay.                                                                                                          
                                 Q=Personnel awaiting                                                                                                   
                                  the second part of                                                                                                    
                                  IADT.                                                                                                                 
                                 S=AGR currently on, or                                                                                                 
                                  awaiting IADT.                                                                                                        
                                  Includes nonprior                                                                                                     
                                  service AGR (Navy TAR                                                                                                 
                                  Enlisted Program                                                                                                      
                                  (TEPs)) personnel.                                                                                                    
                                 T=Simultaneous                                                                                                         
                                  Membership Program                                                                                                    
                                  (SMP). Senior ROTC                                                                                                    
                                  Cadets or Marine                                                                                                      
                                  Corps PLC members who                                                                                                 
                                  are also permitted to                                                                                                 
                                  be members of a                                                                                                       
                                  Selected Reserve unit                                                                                                 
                                  in the grade of                                                                                                       
                                  ``cadet.'' Does not                                                                                                   
                                  include Basic ROTC                                                                                                    
                                  enrollees.                                                                                                            
                                 X=Selected Reserve                                                                                                     
                                  members in other                                                                                                      
                                  training programs,                                                                                                    
                                  including chaplain,                                                                                                   
                                  medical, health                                                                                                       
                                  professional stipend,                                                                                                 
                                  and early                                                                                                             
                                  commissioning                                                                                                         
                                  programs.                                                                                                             
                                 READY RESERVE--IRR and/                                                                                                
                                  or ING                                                                                                                
                                 Trained--RCC (R)                                                                                                       
                                 E=Trained individual                                                                                                   
                                  members of the Ready                                                                                                  
                                  Reserve not in the                                                                                                    
                                  Selected Reserve.                                                                                                     
                                 Ready Reserve                                                                                                          
                                  Training--RCC (P)                                                                                                     
                                 J=Ready Reserve                                                                                                        
                                  members, not in the                                                                                                   
                                  Selected Reserve,                                                                                                     
                                  participating in                                                                                                      
                                  officer training                                                                                                      
                                  programs. Excludes                                                                                                    
                                  ROTC. Includes                                                                                                        
                                  chaplain and Judge                                                                                                    
                                  Advocate General                                                                                                      
                                  (JAG) schooling,                                                                                                      
                                  education delay,                                                                                                      
                                  Reserve officers                                                                                                      
                                  commissioned through                                                                                                  
                                  ROTC or other                                                                                                         
                                  programs, officer                                                                                                     
                                  assignment delay,                                                                                                     
                                  Army Early                                                                                                            
                                  Commissioning                                                                                                         
                                  Program, Coast Guard                                                                                                  
                                  direct commissioning                                                                                                  
                                  candidates, and                                                                                                       
                                  Marine Corps PLC                                                                                                      
                                  members not in SMP.                                                                                                   
                                 K=Ready Reserve                                                                                                        
                                  members, not in the                                                                                                   
                                  Selected Reserve,                                                                                                     
                                  participating in the                                                                                                  
                                  HPSP.                                                                                                                 
                                 Inactive National                                                                                                      
                                  Guard--RCC (I)                                                                                                        
                                 I=Ready Reserve                                                                                                        
                                  members who are                                                                                                       
                                  members of the ING.                                                                                                   
                                 Standby Reserve--                                                                                                      
                                  (Standby Active and                                                                                                   
                                  Inactive).                                                                                                            
                                 Standby Reserve--RCC                                                                                                   
                                  (Y).                                                                                                                  
                                 D=Members of the                                                                                                       
                                  Standby Reserve on                                                                                                    
                                  the ``Active Status                                                                                                   
                                  List''                                                                                                                
                                 L=Members with at                                                                                                      
                                  least 20 years of 10                                                                                                  
                                  U.S.C. 1332                                                                                                           
                                  (reference (h))                                                                                                       
                                  service, with less                                                                                                    
                                  than 30 percent                                                                                                       
                                  Service disability,                                                                                                   
                                  and who have been                                                                                                     
                                  transferred to the                                                                                                    
                                  ``Inactive Status                                                                                                     
                                  List'' instead of                                                                                                     
                                  separation under                                                                                                      
                                  Chapter 61 of                                                                                                         
                                  reference (h)                                                                                                         
                                 N=Other members of the                                                                                                 
                                  Standby Reserve on                                                                                                    
                                  the ``Inactive Status                                                                                                 
                                  List''                                                                                                                
                                 Retired--RCC (V)                                                                                                       

[[Page 625]]

                                                                                                                                                        
                                 1=Service members who                                                                                                  
                                  have completed at                                                                                                     
                                  least 20 qualifying                                                                                                   
                                  years creditable for                                                                                                  
                                  retirement pay under                                                                                                  
                                  Section 1331, of                                                                                                      
                                  reference (h) who are                                                                                                 
                                  60, or more, years of                                                                                                 
                                  age, and are now                                                                                                      
                                  drawing retirement                                                                                                    
                                  pay under Section                                                                                                     
                                  1331 of reference                                                                                                     
                                  (h). Required to be                                                                                                   
                                  tracked at component                                                                                                  
                                  level. Should not to                                                                                                  
                                  be submitted to                                                                                                       
                                  RCCPDS                                                                                                                
                                 2=Service members who                                                                                                  
                                  have completed 20                                                                                                     
                                  qualifying years                                                                                                      
                                  creditable for                                                                                                        
                                  retired pay but are                                                                                                   
                                  not yet entitled to                                                                                                   
                                  retired pay. Only                                                                                                     
                                  retirement category                                                                                                   
                                  to be submitted to                                                                                                    
                                  RCCPDS                                                                                                                
                                 3=Service members                                                                                                      
                                  retired for physical                                                                                                  
                                  disability under                                                                                                      
                                  Sections 1201, 1202,                                                                                                  
                                  1204, or 1205 of                                                                                                      
                                  reference (h).                                                                                                        
                                  Members must have 20                                                                                                  
                                  years of active                                                                                                       
                                  Federal service                                                                                                       
                                  creditable for                                                                                                        
                                  retirement pay or be                                                                                                  
                                  30 percent, or more,                                                                                                  
                                  disabled (includes                                                                                                    
                                  Reservists serving                                                                                                    
                                  with Active or                                                                                                        
                                  Reserve components).                                                                                                  
                                  Required to be                                                                                                        
                                  tracked at component                                                                                                  
                                  level. Should not to                                                                                                  
                                  be submitted to                                                                                                       
                                  RCCPDS                                                                                                                
                                 4=Reserve members who                                                                                                  
                                  have completed 20, or                                                                                                 
                                  more, years of AD                                                                                                     
                                  service and retired                                                                                                   
                                  under Sections 3911,                                                                                                  
                                  3914, 6323, 6330,                                                                                                     
                                  8911, or 8914 of                                                                                                      
                                  reference (h).                                                                                                        
                                  Includes Regular and                                                                                                  
                                  Reserve Army and Air                                                                                                  
                                  Force enlisted                                                                                                        
                                  personnel with                                                                                                        
                                  between 20 and 30                                                                                                     
                                  years of Military                                                                                                     
                                  Service, and Regular                                                                                                  
                                  and Reserve Navy and                                                                                                  
                                  Marine Corps enlisted                                                                                                 
                                  personnel in the                                                                                                      
                                  Fleet Reserve (Navy),                                                                                                 
                                  and Fleet Marine                                                                                                      
                                  Corps Reserve with                                                                                                    
                                  between 20 and 30                                                                                                     
                                  years of service.                                                                                                     
                                  Required to be                                                                                                        
                                  tracked at component                                                                                                  
                                  level. Should not to                                                                                                  
                                  be submitted to                                                                                                       
                                  RCCPDS                                                                                                                
                                 5=Reserve personnel                                                                                                    
                                  drawing retired pay                                                                                                   
                                  based on retirement                                                                                                   
                                  for reasons other                                                                                                     
                                  than age, service                                                                                                     
                                  requirements or                                                                                                       
                                  physical disability.                                                                                                  
                                  That category is                                                                                                      
                                  restricted to those                                                                                                   
                                  who are retired under                                                                                                 
                                  special conditions as                                                                                                 
                                  authorized by the                                                                                                     
                                  Assistant Secretary                                                                                                   
                                  of Defense for                                                                                                        
                                  Reserve Affairs                                                                                                       
                                  (ASD(RA)), under                                                                                                      
                                  Legislation. Not                                                                                                      
                                  required to be                                                                                                        
                                  submitted to RCCPDS                                                                                                   
                                 6=Service members who                                                                                                  
                                  are not eligible for                                                                                                  
                                  retirement pay, but                                                                                                   
                                  have requested                                                                                                        
                                  placement on the                                                                                                      
                                  ``Honorary Retired                                                                                                    
                                  List'' under 10                                                                                                       
                                  U.S.C. 274 and DoD                                                                                                    
                                  Directive 1200.15                                                                                                     
                                  (references (h) and                                                                                                   
                                  (k)). Not required to                                                                                                 
                                  be submitted to                                                                                                       
                                  RCCPDS                                                                                                                
3. Social Security Number (SSN.  Enter nine numeric           5-13        9 N  SO-CA-AB.........  X             X             X             X           
                                  digits omitting                                                                                                       
                                  hyphens for the                                                                                                       
                                  Service member's SSN                                                                                                  
4. SSN Military Spouse of a      Enter nine numeric          14-22       9 AN  SO-CA-AD.........  X             X             ............  ............
 Service Member.                  digits omitting                                                                                                       
                                  hyphens for the SSN                                                                                                   
                                  of the individual's                                                                                                   
                                  lawful wife or                                                                                                        
                                  husband who is a                                                                                                      
                                  member of the Armed                                                                                                   
                                  Forces. If not                                                                                                        
                                  applicable, set                                                                                                       
                                  I=WWWWWWWWW. If                                                                                                       
                                  unknown, set                                                                                                          
                                  I=ZZZZZZZZZ. (Use                                                                                                     
                                  ``not applicable''                                                                                                    
                                  for PJ and PK.)                                                                                                       
5. Verification Status of SSN..  Indicates the status           23        1 A  VE-SA-AA.........  X             X             X             X           
                                  of an individual's                                                                                                    
                                  SSN verification by                                                                                                   
                                  the Social Security                                                                                                   
                                  Administration (SSA);                                                                                                 
                                  i.e., the extent that                                                                                                 
                                  the standard data                                                                                                     
                                  elements: SSN, name,                                                                                                  
                                  individual, date of                                                                                                   
                                  birth (DoB), and sex                                                                                                  
                                  agree with the SSA's                                                                                                  
                                  data. If not                                                                                                          
                                  applicable, set I=W.                                                                                                  
                                  If unknown, set I=Z.                                                                                                  

[[Page 626]]

                                                                                                                                                        
                                 A=SSN verified on                                                                                                      
                                  name, DoB and sex                                                                                                     
                                 B=SSN not in SSA's                                                                                                     
                                  numerical                                                                                                             
                                  identification file.                                                                                                  
                                 C=Name matches, DoB                                                                                                    
                                  matches, sex code                                                                                                     
                                  does not match.                                                                                                       
                                 D=Name matches, sex                                                                                                    
                                  code matches, DoB                                                                                                     
                                  does not match.                                                                                                       
                                 E=Name matches, DoB                                                                                                    
                                  and sex code do not                                                                                                   
                                  match.                                                                                                                
                                 F=Name does not match,                                                                                                 
                                  DoB and sex code not                                                                                                  
                                  checked.                                                                                                              
                                 G=Input SSN not                                                                                                        
                                  verified; SSA located                                                                                                 
                                  and verified a                                                                                                        
                                  different SSN.                                                                                                        
                                 H=Input SSN verified                                                                                                   
                                  on name only (DOB and/                                                                                                
                                  or sex not provided).                                                                                                 
                                 K=SSN has been                                                                                                         
                                  submitted for                                                                                                         
                                  verification, but no                                                                                                  
                                  reply has been                                                                                                        
                                  received.                                                                                                             
                                 V=SSN has not been                                                                                                     
                                  submitted for                                                                                                         
                                  verification.                                                                                                         
6. Service Member's Name.......  See DoD 5000.12-M,          24-50      27 AN  NA-RG............  X             X             X             X           
                                  section 2.3.5.3,                                                                                                      
                                  (reference (i))                                                                                                       
                                  ``Rules for Formation                                                                                                 
                                  of Name.''                                                                                                            
7. Date of Birth...............  The date on which an        51-56        6 N  DA-FA-AS.........  X             X             X             X           
                                  individual was born.                                                                                                  
                                  If unknown, set                                                                                                       
                                  I=999999. If not                                                                                                      
                                  applicable, set                                                                                                       
                                  I=WWWWWW. Enter:                                                                                                      
                                  Year, month, and day                                                                                                  
                                  (YYMMDD). If day only                                                                                                 
                                  is unknown, set                                                                                                       
                                  I=YYMM99. (Use ``not                                                                                                  
                                  applicable'' for PJ                                                                                                   
                                  and PK.)                                                                                                              
8. Sex.........................  M=Male................         57        1 A  SE-XA-AH.........  X             X             X             X           
                                 F=Female..............                                                                                                 
                                 Z=Unknown.............                                                                                                 
9. Race and/or Population Group  C=White...............         58        1 A  RA-BA-AB.........  X             X             X             X           
                                 M=Asian or Pacific                                                                                                     
                                  Islander.                                                                                                             
                                 N=Black...............                                                                                                 
                                 R=American Indian and/                                                                                                 
                                  or Alaskan Native.                                                                                                    
                                 Z=Unknown.............                                                                                                 
                                 W=Not reported........                                                                                                 
                                 (Use ``not reported''                                                                                                  
                                  for PJ and PK.).                                                                                                      

[[Page 627]]

                                                                                                                                                        
10. Ethnic Group...............  Applicable to a member         59       1 AN  ET-MY............  X             X             X             X           
                                  from a segment                                                                                                        
                                  population that                                                                                                       
                                  possesses common                                                                                                      
                                  characteristics and/                                                                                                  
                                  or cultural heritage.                                                                                                 
                                  (Leave blank for PJ                                                                                                   
                                  and PK.)                                                                                                              
                                 1=Other Hispanic                                                                                                       
                                  descent.                                                                                                              
                                 2=U.S. and/or Canadian                                                                                                 
                                  Tribes (formerly                                                                                                      
                                  American-Indian).                                                                                                     
                                 3=Other Asian Descent.                                                                                                 
                                 4=Puerto Rican........                                                                                                 
                                 5=Filipino............                                                                                                 
                                 6=Mexican (formerly                                                                                                    
                                  Mexican-American).                                                                                                    
                                 7=Eskimo..............                                                                                                 
                                 8=Aleut...............                                                                                                 
                                 9=Cuban (formerly                                                                                                      
                                  Cuban-American).                                                                                                      
                                 S=Latin American with                                                                                                  
                                  Hispanic Descent.                                                                                                     
                                 H=Guamanian...........                                                                                                 
                                 G=Chinese.............                                                                                                 
                                 J=Japanese............                                                                                                 
                                 K=Korean..............                                                                                                 
                                 D=Indian..............                                                                                                 
                                 V=Vietnamese..........                                                                                                 
                                 E=Melanesian..........                                                                                                 
                                 W=Micronesian.........                                                                                                 
                                 L=Polynesian..........                                                                                                 
                                 Q=Other Pacific Island                                                                                                 
                                  Descent.                                                                                                              
                                 X=Other...............                                                                                                 
                                 Y=None (Indicates no                                                                                                   
                                  specific ethnicity).                                                                                                  
                                 Z=Unknown.............                                                                                                 
11. Marital Status.............  Legal status of an             60        1 A  MA-NA-AA.........  X             X             X             X           
                                  individual as it                                                                                                      
                                  relates to marriage.                                                                                                  
                                  If unknown, set I=Z.                                                                                                  
                                  (Leave blank for PJ                                                                                                   
                                  and PK.).                                                                                                             
                                 A=Annulled............                                                                                                 
                                 D=Divorced............                                                                                                 
                                 I=Interlocutory.......                                                                                                 
                                 L=Legally Separated...                                                                                                 
                                 M=Married.............                                                                                                 
                                 S=Single..............                                                                                                 
                                 W=Widowed.............                                                                                                 
12. Dependents, Number of......  The number of persons       61-62        2 N  DE-PG-AA.........  X             X             X             ............
                                  for whom the Service                                                                                                  
                                  member provides                                                                                                       
                                  support. (Report only                                                                                                 
                                  those eligible to be                                                                                                  
                                  included on the DD                                                                                                    
                                  Form 1172,                                                                                                            
                                  ``Application for                                                                                                     
                                  Uniformed Services                                                                                                    
                                  Identification and                                                                                                    
                                  Privilege Card''. If                                                                                                  
                                  not applicable, set                                                                                                   
                                  I=66, if unknown, set                                                                                                 
                                  I=99. (Use ``not                                                                                                      
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
13. Educational Designator.....  The educational status         63        1AN  ED-UC-AA.........  X             X             X             X           
                                  or level attained by                                                                                                  
                                  an individual. Those                                                                                                  
                                  codes are to be                                                                                                       
                                  reported, effective 1                                                                                                 
                                  October 1987. If not                                                                                                  
                                  applicable, set I=Y.                                                                                                  
                                  If unknown, set I=Z.                                                                                                  
                                 9=Currently in high                                                                                                    
                                  school--status of an                                                                                                  
                                  individual who is                                                                                                     
                                  currently attending                                                                                                   
                                  high school and is                                                                                                    
                                  not yet a high school                                                                                                 
                                  senior.                                                                                                               
                                 S=High school senior--                                                                                                 
                                  status of individual                                                                                                  
                                  who is currently                                                                                                      
                                  attending high school                                                                                                 
                                  and is a high school                                                                                                  
                                  senior.                                                                                                               

[[Page 628]]

                                                                                                                                                        
                                 1=Less than high                                                                                                       
                                  school diploma--                                                                                                      
                                  status of an                                                                                                          
                                  individual who is not                                                                                                 
                                  currently attending                                                                                                   
                                  high school and who                                                                                                   
                                  is neither a high                                                                                                     
                                  school graduate or an                                                                                                 
                                  alternate high school                                                                                                 
                                  credential holder.                                                                                                    
                                 C=Occupational Program                                                                                                 
                                  Certificate--a                                                                                                        
                                  certificate or                                                                                                        
                                  diploma awarded for                                                                                                   
                                  attending a non-                                                                                                      
                                  correspondence                                                                                                        
                                  vocational,                                                                                                           
                                  technical, or                                                                                                         
                                  proprietary school                                                                                                    
                                  for at least 6                                                                                                        
                                  months. An individual                                                                                                 
                                  so coded must also                                                                                                    
                                  have completed 11                                                                                                     
                                  years of regular day                                                                                                  
                                  school. That is                                                                                                       
                                  considered an                                                                                                         
                                  alternate high school                                                                                                 
                                  credential.                                                                                                           
                                 7=Correspondence                                                                                                       
                                  school diploma--a                                                                                                     
                                  secondary school                                                                                                      
                                  diploma or                                                                                                            
                                  certificate awarded                                                                                                   
                                  upon completion of                                                                                                    
                                  correspondence school                                                                                                 
                                  coursework,                                                                                                           
                                  regardless of whether                                                                                                 
                                  the diploma was                                                                                                       
                                  issued by a                                                                                                           
                                  correspondence                                                                                                        
                                  school, a State, or a                                                                                                 
                                  secondary or                                                                                                          
                                  postsecondary                                                                                                         
                                  educational                                                                                                           
                                  institution. That is                                                                                                  
                                  considered an                                                                                                         
                                  alternate high school                                                                                                 
                                  credential.                                                                                                           
                                 H=Home study diploma--                                                                                                 
                                  a secondary school                                                                                                    
                                  diploma or                                                                                                            
                                  certificate,                                                                                                          
                                  typically awarded by                                                                                                  
                                  a State, based on                                                                                                     
                                  certification by a                                                                                                    
                                  parent or guardian                                                                                                    
                                  that an individual                                                                                                    
                                  completed his or her                                                                                                  
                                  Secondary Education                                                                                                   
                                  at home. That is                                                                                                      
                                  considered an                                                                                                         
                                  alternate high school                                                                                                 
                                  credenital.                                                                                                           
                                 B=Adult education                                                                                                      
                                  diploma--a secondary                                                                                                  
                                  school diploma                                                                                                        
                                  awarded on the basis                                                                                                  
                                  of attending and                                                                                                      
                                  completing an adult                                                                                                   
                                  education or                                                                                                          
                                  ``external'' diploma                                                                                                  
                                  program, regardless                                                                                                   
                                  of whether the                                                                                                        
                                  diploma was issued by                                                                                                 
                                  a State or by a                                                                                                       
                                  secondary or                                                                                                          
                                  postsecondary                                                                                                         
                                  educational                                                                                                           
                                  institution. That is                                                                                                  
                                  considered an                                                                                                         
                                  alternate high school                                                                                                 
                                  credential.                                                                                                           
                                 E=Test-based                                                                                                           
                                  equivalency diploma--                                                                                                 
                                  a diploma or                                                                                                          
                                  certificate of                                                                                                        
                                  general education                                                                                                     
                                  development (GED) or                                                                                                  
                                  other test-based high                                                                                                 
                                  school equivalency                                                                                                    
                                  diploma. That                                                                                                         
                                  includes State-wide                                                                                                   
                                  testing programs such                                                                                                 
                                  as the ``California                                                                                                   
                                  High School                                                                                                           
                                  Proficiency                                                                                                           
                                  Examination                                                                                                           
                                  (CHSPE),'' whereby,                                                                                                   
                                  examinees may earn a                                                                                                  
                                  certificate of                                                                                                        
                                  competency or                                                                                                         
                                  proficency. A State                                                                                                   
                                  or locally issued                                                                                                     
                                  secondary school                                                                                                      
                                  diploma obtained                                                                                                      
                                  solely on the basis                                                                                                   
                                  of such equivalency                                                                                                   
                                  testing is not to be                                                                                                  
                                  considered a high                                                                                                     
                                  school diploma. That                                                                                                  
                                  is considered an                                                                                                      
                                  alernate high school                                                                                                  
                                  credential.                                                                                                           
                                 J=High school                                                                                                          
                                  certificate of                                                                                                        
                                  attendance--an                                                                                                        
                                  attendance-based high                                                                                                 
                                  school certificate or                                                                                                 
                                  diploma. Those are                                                                                                    
                                  sometimes called                                                                                                      
                                  certificates of                                                                                                       
                                  competency or                                                                                                         
                                  completion, but are                                                                                                   
                                  based on course                                                                                                       
                                  completion rather                                                                                                     
                                  than a test such as                                                                                                   
                                  the GED or the CHSPE.                                                                                                 
                                  A State or locally                                                                                                    
                                  issued secondary                                                                                                      
                                  school diploma                                                                                                        
                                  obtained solely on                                                                                                    
                                  the basis of an                                                                                                       
                                  attenance credential                                                                                                  
                                  is not considered a                                                                                                   
                                  high school diploma.                                                                                                  
                                  That is considered an                                                                                                 
                                  alternate high school                                                                                                 
                                  credential.                                                                                                           

[[Page 629]]

                                                                                                                                                        
                                 8=Completed one                                                                                                        
                                  semester of college--                                                                                                 
                                  the status of an                                                                                                      
                                  individual who is a                                                                                                   
                                  non-high school                                                                                                       
                                  graduate or alternate                                                                                                 
                                  high school                                                                                                           
                                  credential holder,                                                                                                    
                                  attended a college or                                                                                                 
                                  university, and                                                                                                       
                                  completed at least 15                                                                                                 
                                  semester or 20                                                                                                        
                                  quarter hours of                                                                                                      
                                  college-level credit.                                                                                                 
                                  Credit earned through                                                                                                 
                                  testing, for pursuit                                                                                                  
                                  of adult education,                                                                                                   
                                  or for high school                                                                                                    
                                  equivalency                                                                                                           
                                  preparation is not                                                                                                    
                                  applicable. For                                                                                                       
                                  military enlistment                                                                                                   
                                  processing purposes,                                                                                                  
                                  an indiviual with                                                                                                     
                                  that status is                                                                                                        
                                  considered a high                                                                                                     
                                  school graduate.                                                                                                      
                                 L=High school diploma--                                                                                                
                                  a diploma issued to                                                                                                   
                                  an individual who has                                                                                                 
                                  attended and                                                                                                          
                                  completed a 12-year                                                                                                   
                                  or grade day program                                                                                                  
                                  of classroom                                                                                                          
                                  instruction; the                                                                                                      
                                  diploma must be                                                                                                       
                                  issued from the                                                                                                       
                                  school where the                                                                                                      
                                  individual completed                                                                                                  
                                  all the program                                                                                                       
                                  requirements.                                                                                                         
                                 D=Associate degree--a                                                                                                  
                                  certificate conferred                                                                                                 
                                  on completion of a 2-                                                                                                 
                                  year program at a                                                                                                     
                                  junior college,                                                                                                       
                                  university or                                                                                                         
                                  technical institute.                                                                                                  
                                 G=Professional nursing                                                                                                 
                                  diploma--a                                                                                                            
                                  certificate conferred                                                                                                 
                                  on completion of a 3-                                                                                                 
                                  year hospital school                                                                                                  
                                  of nursing program.                                                                                                   
                                 K=Baccalaureate                                                                                                        
                                  degree--a certificate                                                                                                 
                                  conferred on                                                                                                          
                                  completion of a 4-                                                                                                    
                                  year college program,                                                                                                 
                                  other than a first                                                                                                    
                                  professional degree.                                                                                                  
                                 W=First professional                                                                                                   
                                  degree--a certificate                                                                                                 
                                  conferred on                                                                                                          
                                  completion of the                                                                                                     
                                  academic requirement                                                                                                  
                                  for the first degrees                                                                                                 
                                  awarded in selected                                                                                                   
                                  professions:                                                                                                          
                                  Architecture,                                                                                                         
                                  Certified Public                                                                                                      
                                  Accountant (CPA),                                                                                                     
                                  Doctor of Chiropody                                                                                                   
                                  (POD.D), Doctor of                                                                                                    
                                  Dentistry (D.D.S.),                                                                                                   
                                  Doctor of Medicine                                                                                                    
                                  (M.D.), Doctor of                                                                                                     
                                  Optometry (O.D.),                                                                                                     
                                  Doctor of Osteopathy                                                                                                  
                                  (D.O.), Pharmacist,                                                                                                   
                                  Doctor of Veterinary                                                                                                  
                                  Medicine (D.V.M.),                                                                                                    
                                  Bachelor or Doctor of                                                                                                 
                                  Law (L.L.B. or J.D.),                                                                                                 
                                  and Bachelor or                                                                                                       
                                  Doctor of Theology                                                                                                    
                                  (B.D.or D.D.), Rabbi,                                                                                                 
                                  or any other first                                                                                                    
                                  professional degree.                                                                                                  
                                 N=Master's degree--a                                                                                                   
                                  certificate conferred                                                                                                 
                                  on completion of                                                                                                      
                                  additional academic                                                                                                   
                                  requirements beyond                                                                                                   
                                  the baccalaureate or                                                                                                  
                                  first professional                                                                                                    
                                  degree but below the                                                                                                  
                                  doctorate level.                                                                                                      
                                 R=Post master's                                                                                                        
                                  degree--a certificate                                                                                                 
                                  conferred on                                                                                                          
                                  completion on                                                                                                         
                                  additional academic                                                                                                   
                                  requirements beyond                                                                                                   
                                  the master's degree                                                                                                   
                                  level but below the                                                                                                   
                                  doctorate level.                                                                                                      
                                 U=Doctorate degree--a                                                                                                  
                                  certificate conferred                                                                                                 
                                  in recognition of the                                                                                                 
                                  highest academic                                                                                                      
                                  achievement within an                                                                                                 
                                  academic field,                                                                                                       
                                  excluding honoray                                                                                                     
                                  degrees and first                                                                                                     
                                  professional degrees.                                                                                                 
14. Filler.....................  Reserved for future         64-66       3 AN  .................  X             X             X             X           
                                  use. Report as ``not                                                                                                  
                                  applicable'', set                                                                                                     
                                  I=666                                                                                                                 
15. Home Mailing Address.......  Include the present        63-153      87 AN  .................  X             X             X             X           
                                  home address for ALL                                                                                                  
                                  Personnel. If                                                                                                         
                                  unknown, fill first                                                                                                   
                                  five positions in                                                                                                     
                                  first line as                                                                                                         
                                  follows: set I=ZZZZZ.                                                                                                 
                                  If not applicable,                                                                                                    
                                  set I=WWWWW. (Use                                                                                                     
                                  ``not applicable''                                                                                                    
                                  for PJ and PK.)                                                                                                       
  a. Street Address............  Line 1................      67-95      29 AN  ST-AD-AA.........  X             X             X             X           
                                 Line 2................     96-124      29 AN  ST-AD-AA.........  X             X             X             X           

[[Page 630]]

                                                                                                                                                        
  b. City......................  ......................    125-142       18 A  non-standard.....  X             X             X             X           
  c. Postal State Abbreviation.  Enter DoD Standard....    143-144       2 AN  ST-GA............  X             X             X             X           
  d. Postal ZIP Code...........  Enter postal ZIP Code.  .........  .........  .................  ............  ............  ............  ............
                                  Use a five-digit ZIP                                                                                                  
                                  Code with trailing                                                                                                    
                                  zeros until nine-                                                                                                     
                                  digits become                                                                                                         
                                  available. If not                                                                                                     
                                  applicable or                                                                                                         
                                  unknown, fill first                                                                                                   
                                  five positions in                                                                                                     
                                  first line as                                                                                                         
                                  follows: if not                                                                                                       
                                  applicable, set                                                                                                       
                                  I=WWWWW, if unknown,                                                                                                  
                                  set I=ZZZZZ                                                                                                           
                                 If unknown, set I=9...        154        1 N  Standard pending.  X             X             X             X           
16. Mailing Address Status       1=Undeliverable and/or  .........  .........  .................  ............  ............  ............  ............
 Indicator.                       not locatable                                                                                                         
                                  (include postmaster                                                                                                   
                                  reports of death)                                                                                                     
                                 2=Restricted mailing                                                                                                   
                                  (no bulk).                                                                                                            
                                 3=Restricted mailing                                                                                                   
                                  (foreign address--                                                                                                    
                                  special handling).                                                                                                    
                                 4=Overseas address....                                                                                                 
                                 5=Army Post Office                                                                                                     
                                  (APO) and/or Fleet                                                                                                    
                                  Post Office (FPO).                                                                                                    
                                 7=Other good address                                                                                                   
                                  (other than those                                                                                                     
                                  above).                                                                                                               
17. Date of Rank...............  The date that             155-160        6 N  DA-FA-BF.........  X             X             ............  ............
                                  establishes the                                                                                                       
                                  relative seniority of                                                                                                 
                                  an individual among                                                                                                   
                                  others who possess                                                                                                    
                                  the same grade. If                                                                                                    
                                  unknown, set                                                                                                          
                                  I=999999. ENTER:                                                                                                      
                                  YYMMDD.                                                                                                               
18. Pay Grade, Uniformed         Current grade             161-163       3 AN  PA-SN-AA.........  X             X             X             X           
 Services.                        consisting of                                                                                                         
                                  personnel class and                                                                                                   
                                  pay level serial                                                                                                      
                                  number                                                                                                                
19. Pay Entry Base Date (PEBD).  The constructed date      164-169        6 N  DA-FA-BM.........  X             X             X             X           
                                  that establishes the                                                                                                  
                                  beginning of an                                                                                                       
                                  individual's                                                                                                          
                                  creditable Federal                                                                                                    
                                  service for pay                                                                                                       
                                  purposes. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMMDD                                                                                                                
20. Date of Initial Entry into   The date an individual    170-175        6 N  DA-FA-BN.........  X             X             X             X           
 Military Service (DIEMS).        was first appointed,                                                                                                  
                                  enlisted, or                                                                                                          
                                  conscripted into any                                                                                                  
                                  Uniformed Service of                                                                                                  
                                  the United States                                                                                                     
                                  (Active or Reserve                                                                                                    
                                  component). That date                                                                                                 
                                  is fixed and is not                                                                                                   
                                  adjusted for breaks                                                                                                   
                                  in service. That                                                                                                      
                                  includes enlistment                                                                                                   
                                  as a Reservist in the                                                                                                 
                                  Senior ROTC Program,                                                                                                  
                                  or as a scholarship                                                                                                   
                                  cadet, or midshipman                                                                                                  
                                  under 10 U.S.C. 2107                                                                                                  
                                  or 2107(a),                                                                                                           
                                  enlistment under 10                                                                                                   
                                  U.S.C. 511(d)                                                                                                         
                                  (reference (h)),                                                                                                      
                                  enlistment in the                                                                                                     
                                  Active component                                                                                                      
                                  Delayed Entry Program                                                                                                 
                                  (DEP), and entrance                                                                                                   
                                  as a cadet or                                                                                                         
                                  midshipman at the                                                                                                     
                                  United States                                                                                                         
                                  Military Academy                                                                                                      
                                  (USMA), the United                                                                                                    
                                  States Naval Academy                                                                                                  
                                  (USNA), the United                                                                                                    
                                  States Air Force                                                                                                      
                                  Academy (USAFA), and                                                                                                  
                                  the United States                                                                                                     
                                  Coast Guard Academy                                                                                                   
                                  (USCGA) (excludes the                                                                                                 
                                  U.S. Merchant Marine                                                                                                  
                                  Academy (USMMA)). If                                                                                                  
                                  unknown, set                                                                                                          
                                  I=999999. If not                                                                                                      
                                  applicable, set                                                                                                       
                                  I=6666666. ENTER:                                                                                                     
                                  YYMMDD. (Use ``not                                                                                                    
                                  applicable'' for PJ                                                                                                   
                                  and PK.)                                                                                                              

[[Page 631]]

                                                                                                                                                        
21. Date of Initial Entry into   The date an individual    176-181        6 N  DA-FA-BO.........  X             X             X             X           
 Reserve Forces (DIERF).          affiliates or enlists                                                                                                 
                                  in any Reserve                                                                                                        
                                  component (Non-EAD)                                                                                                   
                                  for the first time.                                                                                                   
                                  That date is fixed                                                                                                    
                                  and is not adjusted                                                                                                   
                                  for breaks in Reserve                                                                                                 
                                  component service.                                                                                                    
                                  That does not include                                                                                                 
                                  time in the Active                                                                                                    
                                  component DEP, the                                                                                                    
                                  ROTC, or the                                                                                                          
                                  Professional                                                                                                          
                                  Appointment Program.                                                                                                  
                                  If unknown, set                                                                                                       
                                  I=999999. If not                                                                                                      
                                  applicable, set                                                                                                       
                                  I=666666. ENTER:                                                                                                      
                                  YYMMDD. (Use ``not                                                                                                    
                                  applicable'' for PJ                                                                                                   
                                  and PK.)                                                                                                              
22. Date of Expiration of        The date an individual        182        6 N  DA-FA-BP.........  X             X             X             ............
 Statutory Military Service       has completed or will                                                                                                 
 Obligation (MSO).                complete a period of                                                                                                  
                                  Service required by                                                                                                   
                                  statute. (The date of                                                                                                 
                                  expiration of a                                                                                                       
                                  Service member's                                                                                                      
                                  statutory MSO). If                                                                                                    
                                  not applicable, set                                                                                                   
                                  I=666666. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMMDD. (Use ``not                                                                                                    
                                  applicable'' for PJ                                                                                                   
                                  and PK.)                                                                                                              
23. Military Technician          Identifies members of         188        1 A  AC-WA-AA.........  X             ............  ............  ............
 Identifier and/or Active Guard   the Selected Reserve                                                                                                  
 or Reserve Statute Indentifier.  who are civilian                                                                                                      
                                  employees that must                                                                                                   
                                  have ``dual status''                                                                                                  
                                  as military members                                                                                                   
                                  of the Selected                                                                                                       
                                  Reserve. Also,                                                                                                        
                                  identifies the                                                                                                        
                                  specific statutory                                                                                                    
                                  authority under which                                                                                                 
                                  an AGR member is                                                                                                      
                                  serving. Includes                                                                                                     
                                  U.S. Naval Reserve                                                                                                    
                                  TARs; however, does                                                                                                   
                                  not include U.S.C.G.                                                                                                  
                                  Reserve Program                                                                                                       
                                  Administrators                                                                                                        
                                  (RPAs), because they                                                                                                  
                                  are not members of                                                                                                    
                                  the Selected Reserve.                                                                                                 
                                  If not applicable,                                                                                                    
                                  set I=W. If other,                                                                                                    
                                  set I=X. If unknown,                                                                                                  
                                  set I=Z                                                                                                               
                                 M=Military Technician                                                                                                  
                                  U.S.C. 10 and U.S.C.                                                                                                  
                                  32 (references (h)                                                                                                    
                                  and (l)).                                                                                                             
                                 A=10 U.S.C. 175                                                                                                        
                                  (reference (h))                                                                                                       
                                 B=10 U.S.C. 265                                                                                                        
                                  (reference (h)).                                                                                                      
                                 C=10 U.S.C. 672(d)                                                                                                     
                                  (reference (h)).                                                                                                      
                                 D=10 U.S.C. 678                                                                                                        
                                  (reference (h)).                                                                                                      
                                 E=10 U.S.C. 715                                                                                                        
                                  (reference (h)).                                                                                                      
                                 F=10 U.S.C. 3015/3019/                                                                                                 
                                  8019 (reference (h)).                                                                                                 
                                 G=10 U.S.C. 3033/8033                                                                                                  
                                  (reference (h)).                                                                                                      
                                 H=10 U.S.C. 3496/8496                                                                                                  
                                  (reference (h)).                                                                                                      
                                 J=32 U.S.C. 502(f)                                                                                                     
                                  (reference (l)).                                                                                                      
                                 K=32 U.S.C. 503                                                                                                        
                                  (reference (l)).                                                                                                      
                                 L=32 U.S.C. 708                                                                                                        
                                  (reference (l)).                                                                                                      
24. Military Aeronautical        Applicable to both            189        1 A  MI-FA-AA.........  X             X             ............  ............
 Rating.                          office and enlisted                                                                                                   
                                  aeronautical Service                                                                                                  
                                  members. The code                                                                                                     
                                  defines the                                                                                                           
                                  individual's                                                                                                          
                                  aeronautical rating                                                                                                   
                                  for Military                                                                                                          
                                  Services. If not                                                                                                      
                                  applicable, set I=W.                                                                                                  
                                  If unknown, set I=Z.                                                                                                  
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
                                 A=Astronaut...........                                                                                                 
                                 B=Fixed wing pilot....                                                                                                 
                                 C=Rotary wing pilot...                                                                                                 
                                 D=Fixed and/or rotary                                                                                                  
                                  wing pilot.                                                                                                           
                                 E=Navigator and/or                                                                                                     
                                  weapons systems.                                                                                                      
                                 F=Observer............                                                                                                 
                                 G=Flight surgeon......                                                                                                 
                                 H=Crew member (other).                                                                                                 
                                 J=Non-crew member.....                                                                                                 
                                 K=Naval flight officer                                                                                                 
                                 L=Student aviator.....                                                                                                 

[[Page 632]]

                                                                                                                                                        
25. Military Flying Status       Applicable to both            190        1 N  MI-JX-AA.........  X             X             ............  ............
 Indicator.                       officer and enlisted                                                                                                  
                                  Service members (as                                                                                                   
                                  required). That code                                                                                                  
                                  defines whether an                                                                                                    
                                  individual draws some                                                                                                 
                                  type of flying pay                                                                                                    
                                  for current duties.                                                                                                   
                                  An individual must                                                                                                    
                                  have a current                                                                                                        
                                  aeronautical rating                                                                                                   
                                  shown in record field                                                                                                 
                                  24, before an entry                                                                                                   
                                  in that field is                                                                                                      
                                  required. if not                                                                                                      
                                  applicable, set I=6.                                                                                                  
                                  If unknown, set I=9.                                                                                                  
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
                                 1=On flying status....                                                                                                 
                                 2=Not on flying status                                                                                                 
26. Service Occupation Code      Enter up to eight most    191-198       8 AN  Service specific.  X             X             X             X           
 (Primary).                       significant                                                                                                           
                                  characters indicating                                                                                                 
                                  the primary military                                                                                                  
                                  skill held by the                                                                                                     
                                  individual. Include a                                                                                                 
                                  prefix or suffix only                                                                                                 
                                  if space permits.                                                                                                     
                                  Report Army Enlisted                                                                                                  
                                  Military Occupational                                                                                                 
                                  Skill (MOS) and                                                                                                       
                                  Additional Skill                                                                                                      
                                  Identifier (ASI),                                                                                                     
                                  Army Warrant Officer                                                                                                  
                                  MOS and ASI, Army                                                                                                     
                                  Commissioned Officer                                                                                                  
                                  Specialty Skill                                                                                                       
                                  Identifier (SSI and                                                                                                   
                                  ASI, Navy Enlisted                                                                                                    
                                  Rating and primary                                                                                                    
                                  Navy Enlisted                                                                                                         
                                  Classification Code                                                                                                   
                                  (NEC), Navy Officer                                                                                                   
                                  Designator (NOC) and                                                                                                  
                                  primary subspecialty.                                                                                                 
                                  Marine Corps MOS, Air                                                                                                 
                                  Force Specialty Code                                                                                                  
                                  (AFSC), Coast Guard                                                                                                   
                                  officer experience                                                                                                    
                                  indicator, and Coast                                                                                                  
                                  Guard enlisted rating                                                                                                 
                                  and qualification                                                                                                     
                                  code. (left justify)                                                                                                  
                                  If not applicable,                                                                                                    
                                  set I=WWWWWWWW. If                                                                                                    
                                  unknown, set                                                                                                          
                                  I=ZZZZZZZZ. (Use                                                                                                      
                                  ``not applicable''                                                                                                    
                                  for PJ and PK.).                                                                                                      
27. Service Occupation Code      Enter up to eight most    199-206       8 AN  Service specific.  X             X             X             ............
 (Duty).                          significant                                                                                                           
                                  characters indicating                                                                                                 
                                  the military skill of                                                                                                 
                                  the mobilization                                                                                                      
                                  position occupied by                                                                                                  
                                  the individual.                                                                                                       
                                  Include a prefix or                                                                                                   
                                  suffix only if space                                                                                                  
                                  permits. Report Army                                                                                                  
                                  enlisted MOS and ASI,                                                                                                 
                                  Army warrant officer                                                                                                  
                                  MOS and ASI, Army                                                                                                     
                                  commissioned officer                                                                                                  
                                  SSI and ASI, Navy                                                                                                     
                                  enlisted distribution                                                                                                 
                                  rating and NEC, Navy                                                                                                  
                                  primary and secondary                                                                                                 
                                  Officer Billet Code                                                                                                   
                                  (NOBC), Marine Corps                                                                                                  
                                  billet military                                                                                                       
                                  occupational skill                                                                                                    
                                  (BMOS), Air Force                                                                                                     
                                  AFSC, Coast Guard                                                                                                     
                                  Officer experience                                                                                                    
                                  indicator, and Coast                                                                                                  
                                  Guard enlisted rating                                                                                                 
                                  and qualification                                                                                                     
                                  code (left justify).                                                                                                  
                                  If not applicable,                                                                                                    
                                  set I=WWWWWWWW. If                                                                                                    
                                  unknown, set                                                                                                          
                                  I=ZZZZZZZZ. (Use                                                                                                      
                                  ``not applicable''                                                                                                    
                                  for PJ and PK.).                                                                                                      
28. Active Duty Start Date.....  Report the date on        207-212        6 N  DA-FA............  X             X             X             ............
                                  which the Service                                                                                                     
                                  member starts duty                                                                                                    
                                  for 31, or more,                                                                                                      
                                  consecutive days,                                                                                                     
                                  thereby, becoming                                                                                                     
                                  eligible for the                                                                                                      
                                  Defense Enrollment                                                                                                    
                                  Eligibility Reporting                                                                                                 
                                  System (DEERS).                                                                                                       
                                  Include individuals                                                                                                   
                                  that have been                                                                                                        
                                  activated under Title                                                                                                 
                                  10, U.S.C., Chapter                                                                                                   
                                  39. (See record field                                                                                                 
                                  41.) If not                                                                                                           
                                  applicable, set                                                                                                       
                                  I=666666. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMMDD. (Use ``not                                                                                                    
                                  applicable'' for PJ.).                                                                                                

[[Page 633]]

                                                                                                                                                        
29. Active Duty Stop Date......  Report the ending on      213-218        6 N  DA-FA............  X             X             X             ............
                                  which the Service                                                                                                     
                                  member will have                                                                                                      
                                  terminated duty for                                                                                                   
                                  31, or more,                                                                                                          
                                  consecutive days,                                                                                                     
                                  thereby, ending                                                                                                       
                                  eligibility for the                                                                                                   
                                  DEERS. Report also                                                                                                    
                                  for individuals                                                                                                       
                                  affected by                                                                                                           
                                  activation under                                                                                                      
                                  Title 10, U.S.C.,                                                                                                     
                                  Chapter 39. (See                                                                                                      
                                  record field 41.) If                                                                                                  
                                  an indefinite tour,                                                                                                   
                                  set I=555555. If not                                                                                                  
                                  applicable, set                                                                                                       
                                  I=666666. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMMDD. (Use ``not                                                                                                    
                                  applicable'' for PJ.).                                                                                                
30. Security Classification....  The security clearance        219        1 A  SE-FB............  X             X                                       
                                  granted to an                                                                                                         
                                  individual                                                                                                            
                                  designating the                                                                                                       
                                  highest level of                                                                                                      
                                  classified                                                                                                            
                                  information to which                                                                                                  
                                  the individual has                                                                                                    
                                  access. If none, set                                                                                                  
                                  I=Y. If not                                                                                                           
                                  applicable, set I=W.                                                                                                  
                                  If unknown, set I=Z.                                                                                                  
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
                                 T=Top Secret..........                                                                                                 
                                 S=Secret..............                                                                                                 
                                 C=Confidential........                                                                                                 
31. Security Investigation Type  If other, set I=X. If         220       1 AN  Standard pending.  X             X                                       
                                  none, set I=Y. If not                                                                                                 
                                  applicable, set I=W.                                                                                                  
                                  If unknown, set I=Z.                                                                                                  
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
                                 1=Entrance National                                                                                                    
                                  Agency Check (ENAC).                                                                                                  
                                 2=National Agency                                                                                                      
                                  Check (NAC).                                                                                                          
                                 4=Background                                                                                                           
                                  Investigation (BI).                                                                                                   
                                 5=Special Background                                                                                                   
                                  Investigation (SBI).                                                                                                  
                                 B=Local Files Check...                                                                                                 
32. Date of Award of Current     If not applicable, set    221-226        6 N  DA-FA-BS.........  X             X                                       
 Security Clearance.              I=666666. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMMDD. (Use ``not                                                                                                    
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
33. Statutory Authorization for  That information is           227        1 N  Standard pending.  X             X             X                         
 Military Service.                required for all                                                                                                      
                                  Service members                                                                                                       
                                  serving under a                                                                                                       
                                  statutory Military                                                                                                    
                                  obligation. If not                                                                                                    
                                  applicable, set I=6.                                                                                                  
                                  If unknown, set I=9.                                                                                                  
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
                                 1=Currently serving                                                                                                    
                                  under a 6-year                                                                                                        
                                  statutory obligation                                                                                                  
                                  (10 U.S.C. 651                                                                                                        
                                  reference (h)).                                                                                                       
                                 2=Currently serving                                                                                                    
                                  under an obligation                                                                                                   
                                  other than required                                                                                                   
                                  by Section 651 of                                                                                                     
                                  reference (h).                                                                                                        
                                 3=Currently serving                                                                                                    
                                  under an 8-year                                                                                                       
                                  statutory obligation                                                                                                  
                                  Section 651 of                                                                                                        
                                  reference (h).                                                                                                        
34. Multiple Reporting.........  ......................        228       1 AN  D                                                                        

[[Page 634]]

                                                                                                                                                        
  a. Source of Initial           The Accession Program         228        1 A  SO-WB-AA.........  X             X             X             X           
   Commission for a               source of officer's                                                                                                   
   Commissioned Officer.          original initial                                                                                                      
                                  commission. Once                                                                                                      
                                  recorded, the entry                                                                                                   
                                  should not change                                                                                                     
                                  except for                                                                                                            
                                  corrections. If not                                                                                                   
                                  applicable, set I=W.                                                                                                  
                                  If other, set I=X. If                                                                                                 
                                  unknown, set I=Z.                                                                                                     
                                 A=Academy graduate,                                                                                                    
                                  U.S.M.A..                                                                                                             
                                 B=Academy graduate,                                                                                                    
                                  U.S.N.A..                                                                                                             
                                 C=Academy graduate,                                                                                                    
                                  U.S.A.F.A..                                                                                                           
                                 D=Academy graduate,                                                                                                    
                                  U.S.C.G.A..                                                                                                           
                                 E=Academy graduate,                                                                                                    
                                  U.S.M.M.A..                                                                                                           
                                 F=Air National Guard                                                                                                   
                                  (ANG) Academy of                                                                                                      
                                  Military Sciences.                                                                                                    
                                 G=ROTC/Naval Reserve                                                                                                   
                                  Officer Training                                                                                                      
                                  Corps (NROTC)                                                                                                         
                                  (scholarship).                                                                                                        
                                 H=ROTC/Naval Reserve                                                                                                   
                                  Officer Training                                                                                                      
                                  Corps (NROTC) (non-                                                                                                   
                                  scholarship).                                                                                                         
                                 J=Officer Candidate                                                                                                    
                                  School (OCS)/Aviation                                                                                                 
                                  Officer Candidate                                                                                                     
                                  School (AOCS)/Officer                                                                                                 
                                  Training School (OTS)/                                                                                                
                                  Platoon Leader Course                                                                                                 
                                  (PLC).                                                                                                                
                                 K=Aviation Cadet......                                                                                                 
                                 L=National Guard State                                                                                                 
                                  OCS.                                                                                                                  
                                 M=Direct appointment                                                                                                   
                                  (professional--medica                                                                                                 
                                  l, dental, JAG,                                                                                                       
                                  chaplain, etc.).                                                                                                      
                                 N=Direct appointment                                                                                                   
                                  (all others, includes                                                                                                 
                                  Navy limited duty                                                                                                     
                                  officer).                                                                                                             
                                 P=Aviation training                                                                                                    
                                  program (exclusive of                                                                                                 
                                  OCS and/or AOCS and/                                                                                                  
                                  or OTS and/or PLC).                                                                                                   
  b. Source of Initial           Method by which an            228        1 N  Standard pending.  X             X             X             X           
   Appointment for a Warrant      individual was                                                                                                        
   Officer.                       initially appointed a                                                                                                 
                                  warrant officer or                                                                                                    
                                  commissioned warrant                                                                                                  
                                  officer. If not                                                                                                       
                                  applicable, set I=6.                                                                                                  
                                  If other, set I=8. If                                                                                                 
                                  unknown, set I=9.                                                                                                     
                                 1=Appointment as a                                                                                                     
                                  warrant officer.                                                                                                      
                                 2=Appointment as a                                                                                                     
                                  commissioned warrant                                                                                                  
                                  officer.                                                                                                              
                                 3=Warrant Officer                                                                                                      
                                  Aviation Training                                                                                                     
                                  Program.                                                                                                              
35. Multiple Reporting Date....  ......................    229-234        6 N  DA-FA............                                                        
  a. Date of Initial             Actual date of            229-234        6 N  DA-FA-BI.........  X             X                                       
   Appointment for a              acceptance of initial                                                                                                 
   Commissioned Officer.          commission of an                                                                                                      
                                  officer. That does                                                                                                    
                                  not include                                                                                                           
                                  constructive credit                                                                                                   
                                  awarded. Excludes                                                                                                     
                                  Commissioned Warrant                                                                                                  
                                  Officers. If not                                                                                                      
                                  applicable, set                                                                                                       
                                  I=666666. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMMDD.                                                                                                               
  b. Data of Initial             Date of acceptance of     229-234        6 N  DA-FA-BJ.........  X             X             X             X           
   Appointment for a Warrant      initial appointment                                                                                                   
   Officer.                       to warrant officer.                                                                                                   
                                  If not applicable,                                                                                                    
                                  set I=666666. If                                                                                                      
                                  unknown, set                                                                                                          
                                  I=999999. ENTER:                                                                                                      
                                  YYMMDD.                                                                                                               
  c. Date of Initial             Date of acceptance of     229-234        6 N  DA-FA-BK.........  X             X             X             X           
   Appointment for a              initial commission to                                                                                                 
   Commissioned Warrant Officer.  a warrant officer. If                                                                                                 
                                  not applicable, set                                                                                                   
                                  I=666666. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMMDD.                                                                                                               

[[Page 635]]

                                                                                                                                                        
  d. Date of Expiration of       The constructed date      229-234        6 N  DA-FA-BL.........  X             X             ............  ............
   Enlistment in the Ready        on which an                                                                                                           
   Reserve.                       individual's period                                                                                                   
                                  of service in the                                                                                                     
                                  Ready Reserve,                                                                                                        
                                  incurred through                                                                                                      
                                  contractual                                                                                                           
                                  provisions, expires.                                                                                                  
                                  If unknown, set                                                                                                       
                                  I=999999. ENTER:                                                                                                      
                                  YYMMDD.                                                                                                               
36. Basic Branch or Specialty    Report for Army           235-236        2 A  Service specific.  X             X             X             ............
 (Officer Only).                  National Guard and                                                                                                    
                                  Army Reserve. If not                                                                                                  
                                  applicable, set I=WW.                                                                                                 
                                  If unknown, set I=ZZ.                                                                                                 
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.)                                                                                                              
                                 AD=Defense Artillery                                                                                                   
                                 AG=Adjutant Generals                                                                                                   
                                  Corps                                                                                                                 
                                 AN=Army Nurse Corps                                                                                                    
                                 AR=Armor                                                                                                               
                                 AV=Aviation                                                                                                            
                                 CH=Chaplain Corps                                                                                                      
                                 CM=Chemical Corps                                                                                                      
                                 CA=Civil Affairs                                                                                                       
                                 DE=Dental Corps                                                                                                        
                                 DL=Delayed Entry                                                                                                       
                                  (Includes Assignment                                                                                                  
                                  Delay)                                                                                                                
                                 EN=Engineer Corps                                                                                                      
                                 FA=Field Artillery                                                                                                     
                                 FI=Finance Corps                                                                                                       
                                 GO=General Officer                                                                                                     
                                 IN=Infantry                                                                                                            
                                 JA=Judge Advocate                                                                                                      
                                  General Corps                                                                                                         
                                 MC=Medical Corps                                                                                                       
                                 MI=Military                                                                                                            
                                  Intelligence                                                                                                          
                                 MP=Military Police                                                                                                     
                                 MS=Medical Service                                                                                                     
                                  Corps                                                                                                                 
                                 OD=Ordnance Corps                                                                                                      
                                 QM=Quartermaster Corps                                                                                                 
                                 SC=Signal Corps                                                                                                        
                                 SO=Special Operations                                                                                                  
                                 SP=Army Medical                                                                                                        
                                  Specialist Corps                                                                                                      
                                 SS=Staff Specialist                                                                                                    
                                 TC=Transportation                                                                                                      
                                  Corps                                                                                                                 
                                 VC=Veterinary Corps                                                                                                    
                                 WO=Warrant Officer                                                                                                     
                                 Report for all other                                                                                                   
                                  Reserve components.                                                                                                   
                                  If not applicable,                                                                                                    
                                  set I=WW. If unknown,                                                                                                 
                                  set I=ZZ                                                                                                              
                                 AN=Nurse                                                                                                               
                                 CH=Chaplain                                                                                                            
                                 DE=Dentist                                                                                                             
                                 JA=Judge Advocate                                                                                                      
                                 MC=Medical Corps                                                                                                       
                                 MI=Military                                                                                                            
                                  intelligence                                                                                                          
                                 MS=Medical Service                                                                                                     
                                  Corps                                                                                                                 
                                 SP=Medical Specialist                                                                                                  
                                  (Air Force                                                                                                 
                                  Biomedical Science                                                                                                    
                                  Corps)                                                                                                                
                                 VC=Veterinarian                                                                                                        
                                 LI=Line (unrestricted)                                                                                                 
                                 RL=Restricted line                                                                                                     
                                  (less Military                                                                                                        
                                  intelligence)                                                                                                         
                                 PS=Prospective Staff                                                                                                   
                                  Corps (unrestricted                                                                                                   
                                  line)                                                                                                                 
                                 LL=Limited duty                                                                                                        
                                  officer (in support                                                                                                   
                                  of the unrestricted                                                                                                   
                                  line)                                                                                                                 

[[Page 636]]

                                                                                                                                                        
                                 LR=Limited Duty                                                                                                        
                                  officer (in support                                                                                                   
                                  of the restricted                                                                                                     
                                  line)                                                                                                                 
                                 LS=Limited duty                                                                                                        
                                  officer (in support                                                                                                   
                                  of the Staff Corps)                                                                                                   
                                 WL=Warrant officer (in                                                                                                 
                                  support of the                                                                                                        
                                  unrestricted line)                                                                                                    
                                 WR=Warrant officer (in                                                                                                 
                                  support of the                                                                                                        
                                  restricted line)                                                                                                      
                                 WS=Warrant officer (in                                                                                                 
                                  support of the Staff                                                                                                  
                                  Corps)                                                                                                                
                                 CE=Civil Engineer                                                                                                      
                                  Corps                                                                                                                 
                                 PC=Supply Corps                                                                                                        
37. Year and Month of Officer    Enter the YYMM part of    237-240        4 N  YE-NH-AY.........  X             X             X             ............
 Mandatory Removal Date.          the date that an                                                                                                      
                                  individual must be                                                                                                    
                                  removed from active                                                                                                   
                                  status due to                                                                                                         
                                  mandatory Service,                                                                                                    
                                  grade, and age                                                                                                        
                                  criteria. Report                                                                                                      
                                  actual year and                                                                                                       
                                  month, even if it is                                                                                                  
                                  beyond 1999. If not                                                                                                   
                                  applicable, set                                                                                                       
                                  I=6666. If unknown,                                                                                                   
                                  set I=9999. (Use                                                                                                      
                                  ``not applicable''                                                                                                    
                                  for PJ and PK.).                                                                                                      
38. Command Status of            That status applies to        241        1 N  CO-FT-AA.........  X             ............  ............  ............
 Commissoned Officer.             all commissioned                                                                                                      
                                  officers who are                                                                                                      
                                  qualified to serve as                                                                                                 
                                  a unit commander                                                                                                      
                                  regardless of                                                                                                         
                                  administrative and/or                                                                                                 
                                  function pay. If not                                                                                                  
                                  applicable, set I=6.                                                                                                  
                                  If unknown, set I=9.                                                                                                  
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
                                 1=Currently in command                                                                                                 
                                  of a unit.                                                                                                            
                                 2=Previously commanded                                                                                                 
                                  a unit.                                                                                                               
                                 3=Never commanded a                                                                                                    
                                  unit.                                                                                                                 
39. Professional Military        The highest level of          242        1 N  PR-PL-AA.........  X             X             X             ............
 Education Level.                 military education                                                                                                    
                                  completed by an                                                                                                       
                                  officer in residency,                                                                                                 
                                  seminar, or                                                                                                           
                                  correspondence. If                                                                                                    
                                  not applicable, set                                                                                                   
                                  I=6. If none, set                                                                                                     
                                  I=8. If unknown, set                                                                                                  
                                  I=9. (Use ``not                                                                                                       
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
                                 1=Senior Service                                                                                                       
                                  School--includes:                                                                                                     
                                 National War College                                                                                                   
                                 Industrial College of                                                                                                  
                                  the Armed Forces                                                                                                      
                                 Army War College                                                                                                       
                                 Navy War College,                                                                                                      
                                  Advanced Study and                                                                                                    
                                  Naval Warfare                                                                                                         
                                 (British) Royal                                                                                                        
                                  College of Defense                                                                                                    
                                  Studies                                                                                                               
                                 North Atlantic Treaty                                                                                                  
                                  Organization (NATO)                                                                                                   
                                  Defense College                                                                                                       
                                 Art of War Studies                                                                                                     
                                  (Quantico)                                                                                                            
                                 Canadian National                                                                                                      
                                  Defense College                                                                                                       
                                 Canadian Seminar in                                                                                                    
                                  Foreign Policy,                                                                                                       
                                  Department of State                                                                                                   
                                  (DoS)                                                                                                                 
                                 Inter-American Defense                                                                                                 
                                  College                                                                                                               
                                 Air War College                                                                                                        
                                 2=Intermediate Service                                                                                                 
                                  School--includes:                                                                                                     
                                 Air Command and Staff                                                                                                  
                                  College                                                                                                               
                                 Army Command and                                                                                                       
                                  General Staff College                                                                                                 
                                 Naval War College,                                                                                                     
                                  Command and Staff                                                                                                     
                                 Naval War College,                                                                                                     
                                  Command and Staff                                                                                                     
                                  Interim Course                                                                                                        
                                 Marine Corps Command                                                                                                   
                                  and Staff College                                                                                                     
                                 Spanish Naval War                                                                                                      
                                  College                                                                                                               
                                 French Naval War                                                                                                       
                                  College                                                                                                               

[[Page 637]]

                                                                                                                                                        
                                 Royal Naval Command                                                                                                    
                                  and Staff College                                                                                                     
                                 Royal Air Force Staff                                                                                                  
                                  College                                                                                                               
                                 Japanese Command and                                                                                                   
                                  Staff College                                                                                                         
                                 German General Staff                                                                                                   
                                  College                                                                                                               
                                 Indian National                                                                                                        
                                  Defense Service Staff                                                                                                 
                                  College                                                                                                               
                                 3=Skill Progression                                                                                                    
                                  School--includes:                                                                                                     
                                 Army Advanced Branch                                                                                                   
                                  School                                                                                                                
                                 Marine Corps                                                                                                           
                                  Amphibious Warfare                                                                                                    
                                  Course                                                                                                                
                                 Air Force Squadron                                                                                                     
                                  Officer School                                                                                                        
                                 Combined Arms and                                                                                                      
                                  Services Staff School                                                                                                 
                                  (CAS3)                                                                                                                
                                 4=Initial Skill--                                                                                                      
                                  includes:                                                                                                             
                                 Army Basic Course                                                                                                      
                                 Marine Corps Basic                                                                                                     
                                  School                                                                                                                
                                 Navy Warfare Specialty                                                                                                 
                                  Training                                                                                                              
40. Armed Forces Qualification   Report AFQT percentile    243-244       2 AN  TE-ST-AA.........  X             X             X             ............
 Test (AFQT) Percentile Score     score, or equivalent.                                                                                                 
 (Enlisted Only).                 If the score on a                                                                                                     
                                  classification test                                                                                                   
                                  is available instead,                                                                                                 
                                  convert                                                                                                               
                                  classification test                                                                                                   
                                  score to an AFQT                                                                                                      
                                  percentile score and                                                                                                  
                                  provide a description                                                                                                 
                                  of the conversion                                                                                                     
                                  method. Convert                                                                                                       
                                  percentile scores of                                                                                                  
                                  100 to 99. If not                                                                                                     
                                  applicable, set I=WW.                                                                                                 
                                  If unknown, set I=ZZ.                                                                                                 
41. Involuntary Call to Active   Report only if            245-246       2 AN  Standard pending.  X             ............  ............  ............
 Duty.                            individual was                                                                                                        
                                  ordered to AD under                                                                                                   
                                  10 U.S.C., Chapter                                                                                                    
                                  39. (reference (h)).                                                                                                  
                                  Does not apply to AGR                                                                                                 
                                  on AD, Section 672(d)                                                                                                 
                                  of reference (h).                                                                                                     
                                  Enter:                                                                                                                
                                 CI=Presidential Callup                                                                                                 
                                  (10 U.S.C. 673b).                                                                                                     
                                 PM=Partial                                                                                                             
                                  Mobilization (10                                                                                                      
                                  U.S.C. 673).                                                                                                          
42. Means of Initial Entry into  Designates the                247        1 A  ME-ES-AB.........  X             X             X             ............
 Military Service for Enlisted    ``initial'' entry                                                                                                     
 Members.                         into the United                                                                                                       
                                  States Armed Forces,                                                                                                  
                                  as an enlisted                                                                                                        
                                  Service member. The                                                                                                   
                                  data is intended to                                                                                                   
                                  be a permanent record                                                                                                 
                                  entry and should only                                                                                                 
                                  change if an error is                                                                                                 
                                  found. If not                                                                                                         
                                  applicable, set I=W.                                                                                                  
                                  If other, set I=X. If                                                                                                 
                                  unknown, set I=Z.                                                                                                     
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.)                                                                                                              
                                 A=Induction (any                                                                                                       
                                  Service).                                                                                                             
                                 B=Voluntary enlistment                                                                                                 
                                  in a Regular                                                                                                          
                                  component.                                                                                                            
                                 C=Voluntary enlistment                                                                                                 
                                  in a Reserve                                                                                                          
                                  component for service                                                                                                 
                                  in a Regular                                                                                                          
                                  component DEP, any                                                                                                    
                                  Service, under 10                                                                                                     
                                  U.S.C. 511 or, after                                                                                                  
                                  November 1989, 10                                                                                                     
                                  U.S.C. 513 of                                                                                                         
                                  reference (h).                                                                                                        
                                 D=Voluntary enlistment                                                                                                 
                                  in Reserve component,                                                                                                 
                                  any Service, under 10                                                                                                 
                                  U.S.C. 511. Excludes                                                                                                  
                                  the DEP.                                                                                                              
43. Prior Service (PS) Status    Prior AD service of           248        1 A  Standard pending.  X             X             X             ............
 Indicator (Active).              180 days or more in                                                                                                   
                                  any Armed Force. Does                                                                                                 
                                  not include ADT. If                                                                                                   
                                  unknown, set I=Z. If                                                                                                  
                                  not applicable, set                                                                                                   
                                  I=W. (Use ``not                                                                                                       
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
                                 Y=Yes.................                                                                                                 
                                 N=No..................                                                                                                 
44. Prior Service Status         Prior Selective               249        1 A  Standard pending.  X             X             X             ............
 Indicator (Selected Reserve).    Reserve Service.                                                                                                      
                                  Report if individual                                                                                                  
                                  has previously been a                                                                                                 
                                  member of the                                                                                                         
                                  Selected Reserve of                                                                                                   
                                  any Armed Force.                                                                                                      
                                 Y=Yes.................                                                                                                 
                                 N=No..................                                                                                                 
45. Length of Current Selected   Enter the code for the        250        1 A  Standard pending.  X             ............  ............  ............
 Reserve Agreement and/or         actual number of                                                                                                      
 Service Commitment.              years Service member                                                                                                  
                                  (officer and                                                                                                          
                                  enlisted) agrees, or,                                                                                                 
                                  is committed, to                                                                                                      
                                  serve in the Selected                                                                                                 
                                  Reserve. If                                                                                                           
                                  indefinite, set I=V.                                                                                                  
                                  If not applicable,                                                                                                    
                                  set I=W. If unknown,                                                                                                  
                                  set I=Z.                                                                                                              

[[Page 638]]

                                                                                                                                                        
                                    Code and Selected                                                                                                   
                                         Reserve                                                                                                        
                                    A              0                                                                                                    
                                    B              1                                                                                                    
                                    C              2                                                                                                    
                                    D              3                                                                                                    
                                    E              4                                                                                                    
                                    F              5                                                                                                    
                                    G              6                                                                                                    
                                    H              7                                                                                                    
                                    J              8                                                                                                    
46. Military Unit Designator     Enter UIC of Reserve      251-258       8 AN  Service specific.  X             X             X             ............
 (Unit Identification Code        unit to which Service                                                                                                 
 (UIC)).                          member is assigned.                                                                                                   
                                  If UIC where Service                                                                                                  
                                  member is actually                                                                                                    
                                  performing duty is                                                                                                    
                                  different, then, also                                                                                                 
                                  enter data in record                                                                                                  
                                  field 101. IMAs shall                                                                                                 
                                  carry the UIC of the                                                                                                  
                                  unit they augment on                                                                                                  
                                  mobilization. (Marine                                                                                                 
                                  Corps to submit                                                                                                       
                                  Reporting Unit Code                                                                                                   
                                  (RUC) and Monitored                                                                                                   
                                  Command Code (MCC),                                                                                                   
                                  Air Force to submit                                                                                                   
                                  PAS Code, Army                                                                                                        
                                  Reserve to submit 6                                                                                                   
                                  position UIC and                                                                                                      
                                  MUSARC Code) If not                                                                                                   
                                  applicable, set                                                                                                       
                                  I=WWWWWWWW. If                                                                                                        
                                  unknown, set                                                                                                          
                                  I=ZZZZZZZZ.                                                                                                           
47. States of the United States  Use only the State,       259-260       2 AN  ST-GA-AA or CO-XV- X             ............  ............  ............
 and Countries (Unit Location).   territory, or country                         AA.                                                                     
                                  of the Service                                                                                                        
                                  member's Reserve                                                                                                      
                                  unit. IMAs shall                                                                                                      
                                  carry the State code                                                                                                  
                                  of the unit they                                                                                                      
                                  augment on                                                                                                            
                                  mobilization. If not                                                                                                  
                                  applicable set I=WW.                                                                                                  
                                  If overseas, set                                                                                                      
                                  I=88. If unknown, set                                                                                                 
                                  I=99.                                                                                                                 
48. National Zoning Improvement  Use only the ZIP Codes    261-269       9 AN  NA-ZC-AC.........  X             ............  ............  ............
 Plan (Unit ZIP Code).            shown in the most                                                                                                     
                                  recent edition of the                                                                                                 
                                  ``National ZIP Code                                                                                                   
                                  Directory''                                                                                                           
                                  (reference (m)) for                                                                                                   
                                  the members Reserve                                                                                                   
                                  unit. Enter an APO or                                                                                                 
                                  FPO for a unit in an                                                                                                  
                                  overseas location.                                                                                                    
                                  IMAs shall carry the                                                                                                  
                                  ZIP Code of the unit                                                                                                  
                                  they augment on                                                                                                       
                                  mobilization. Use a                                                                                                   
                                  five-digit ZIP Code                                                                                                   
                                  with trailing zeros                                                                                                   
                                  until nine-digits ZIP                                                                                                 
                                  Codes become                                                                                                          
                                  available. If not                                                                                                     
                                  applicable, set                                                                                                       
                                  I=WWWWWWWWW. If                                                                                                       
                                  unknown, set                                                                                                          
                                  I=ZZZZZZZZZ. (Use                                                                                                     
                                  ``not applicable''                                                                                                    
                                  for PJ and PK.).                                                                                                      
49. Filler.....................  Reserved for future       270-275        6AN                     ............  ............  ............  ............
                                  use. Report as ``not                                                                                                  
                                  applicable'', set                                                                                                     
                                  I=666666.                                                                                                             
50. Defense Language Aptitude    Enter a test score        276-278        3 N  AS-RB-AA.........  X             X             ............  ............
 Battery Test Score.              value of 012 to 164.                                                                                                  
                                  If not applicable,                                                                                                    
                                  set I=666. If                                                                                                         
                                  unknown, set I=999.                                                                                                   
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             

[[Page 639]]

                                                                                                                                                        
51. Language Identifier........  A language in which an    279-280        2 A  LA-JM-AB.........  X             X                                       
                                  individual possesses                                                                                                  
                                  proficiency. Enter                                                                                                    
                                  language code                                                                                                         
                                  according to DoD                                                                                                      
                                  Standard Data Element                                                                                                 
                                  LA-JM, DoD 5000.12-M,                                                                                                 
                                  reference (i).                                                                                                        
                                  (Report the language,                                                                                                 
                                  other than English,                                                                                                   
                                  in which an                                                                                                           
                                  individual has the                                                                                                    
                                  highest proficiency                                                                                                   
                                  level, based on the                                                                                                   
                                  Defense Language                                                                                                      
                                  Proficiency Test                                                                                                      
                                  (DPLT).) If not                                                                                                       
                                  applicable, set I=WW.                                                                                                 
                                  If unknown, set I=ZZ.                                                                                                 
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
52. Speaking Proficiency Level,  The demonstrated          281-282        2 N  LA-JW-AB.........  X             X                                       
 First Language.                  degree of speaking                                                                                                    
                                  skill of an                                                                                                           
                                  individual as                                                                                                         
                                  determined by a                                                                                                       
                                  language examination.                                                                                                 
                                  (See record field                                                                                                     
                                  51.) If only a one                                                                                                    
                                  character code is                                                                                                     
                                  available (according                                                                                                  
                                  to DoD Standard Data                                                                                                  
                                  Element Reference LA-                                                                                                 
                                  JW, DoD 5000.12-M,                                                                                                    
                                  reference (i)), left                                                                                                  
                                  justify the data. If                                                                                                  
                                  not applicable, set                                                                                                   
                                  I=66. If unknown, set                                                                                                 
                                  I=99. (Use ``not                                                                                                      
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
53. Listening Proficiency        The demonstrated          283-284        2 N  LA-JX-AB.........  X             X                                       
 Level, First Language.           degree of listening                                                                                                   
                                  skill of an                                                                                                           
                                  individual as                                                                                                         
                                  determined by a                                                                                                       
                                  language examination.                                                                                                 
                                  (See record field                                                                                                     
                                  51). If only a one                                                                                                    
                                  character code is                                                                                                     
                                  available (according                                                                                                  
                                  to DoD Standard Data                                                                                                  
                                  Element reference LA-                                                                                                 
                                  JX, (reference (i)),                                                                                                  
                                  left justify the                                                                                                      
                                  data. If not                                                                                                          
                                  applicable, set I=66.                                                                                                 
                                  If unknown, set I=99.                                                                                                 
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
54. Reading Proficiency Level,   The demonstrated          285-286        2 N  LA-JY-AB.........  X             X                                       
 First Language.                  degree of reading                                                                                                     
                                  skill of an                                                                                                           
                                  individual as                                                                                                         
                                  determined by a                                                                                                       
                                  language examination.                                                                                                 
                                  (See record field                                                                                                     
                                  51.) If only a one                                                                                                    
                                  character code is                                                                                                     
                                  available (according                                                                                                  
                                  to DoD Standard                                                                                                       
                                  Element Reference LA-                                                                                                 
                                  JY, (reference (i)),                                                                                                  
                                  left justify the                                                                                                      
                                  data. If not                                                                                                          
                                  applicable, set I=66.                                                                                                 
                                  If unknown, set I=99.                                                                                                 
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
55. Filler.....................  Reserved for future           287        2 N                                                                           
                                  use. Report ``not                                                                                                     
                                  applicable,'' set                                                                                                     
                                  I=66.                                                                                                                 
56. Language Proficiency         Main origin of skill          289         1A  LA-JV-AB.........  X             X                                       
 Source, First Language.          in a language. Enter                                                                                                  
                                  one character code                                                                                                    
                                  according to DoD                                                                                                      
                                  Standard Data Element                                                                                                 
                                  LA-JV, DoD 5000.12-M,                                                                                                 
                                  reference (i). If not                                                                                                 
                                  applicable, set I=W.                                                                                                  
                                  If unknown, set I=Z.                                                                                                  
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
57. Year and Month of Last       The YYMM part of the      290-293        4 N  YE-NH-BB.........  X             X                                       
 Proficiency Test of First        evaluation date of an                                                                                                 
 Language.                        individual's last                                                                                                     
                                  proficiency test in a                                                                                                 
                                  first language.                                                                                                       
                                  ENTER: YYMM. If not                                                                                                   
                                  applicable, set                                                                                                       
                                  I=6666. If unknown,                                                                                                   
                                  set I=9999. (Use                                                                                                      
                                  ``not applicable''                                                                                                    
                                  for PJ and PK.).                                                                                                      
58. Second Language Identifier.  A language in which an    294-295        2 A  LA-JM-AC.........  X             X                                       
                                  individual possesses                                                                                                  
                                  proficiency. Enter                                                                                                    
                                  language code                                                                                                         
                                  according to DoD                                                                                                      
                                  Standard Data Element                                                                                                 
                                  LA-JM, DoD 5000.12-M,                                                                                                 
                                  reference (i).                                                                                                        
                                  (Report the language,                                                                                                 
                                  other than English,                                                                                                   
                                  in which an                                                                                                           
                                  individual has the                                                                                                    
                                  second highest                                                                                                        
                                  proficiency level,                                                                                                    
                                  based on the Defense                                                                                                  
                                  Language Proficiency                                                                                                  
                                  Test (DPLT.)) If not                                                                                                  
                                  applicable, set I=WW.                                                                                                 
                                  If unknown, set I=ZZ.                                                                                                 
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
59. Speaking Proficiecy Level,   The demonstrated          296-297        2 N  LA-JW-ACB........  X             X                                       
 Second Language.                 degree of speaking                                                                                                    
                                  skill of an                                                                                                           
                                  individual as                                                                                                         
                                  determined by a                                                                                                       
                                  language examination.                                                                                                 
                                  (See record field                                                                                                     
                                  58.) If only a one                                                                                                    
                                  character code is                                                                                                     
                                  available (according                                                                                                  
                                  to DoD Standard Data                                                                                                  
                                  Element Reference.                                                                                                    
                                 LA-JW, DoD 5000.12-M,                                                                                                  
                                  reference (i)), left                                                                                                  
                                  justify the data. If                                                                                                  
                                  not applicable, set                                                                                                   
                                  I=66. If unknown, set                                                                                                 
                                  I=99. (Use ``not                                                                                                      
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             

[[Page 640]]

                                                                                                                                                        
60. Listening Proficiency        The demonstrated          298-299        2 N  LA-JX-AC.........  X             X                                       
 Level, Second Language.          degree of listening                                                                                                   
                                  skill of an                                                                                                           
                                  individual as                                                                                                         
                                  determined by a                                                                                                       
                                  language examination.                                                                                                 
                                  (See record field                                                                                                     
                                  58). If only a one                                                                                                    
                                  character code is                                                                                                     
                                  available (according                                                                                                  
                                  to DoD Standard Data                                                                                                  
                                  Element reference                                                                                                     
                                  number LA-JX,                                                                                                         
                                  (reference (i)), left                                                                                                 
                                  justify the data. If                                                                                                  
                                  not applicable, set                                                                                                   
                                  I=66. If unknown, set                                                                                                 
                                  I=99. (Use ``not                                                                                                      
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
61. Reading Proficiency Level,   The demonstrated          300-301        2 N  LA-JY-ACB........  X             X                                       
 Second Language.                 degree of reading                                                                                                     
                                  skill of an                                                                                                           
                                  individual as                                                                                                         
                                  determined by a                                                                                                       
                                  language examination.                                                                                                 
                                  (See record field                                                                                                     
                                  58.) If only a one                                                                                                    
                                  character code is                                                                                                     
                                  available (according                                                                                                  
                                  to DoD Standard Data                                                                                                  
                                  Element Reference LA-                                                                                                 
                                  JW, DoD 5000.12-M,                                                                                                    
                                  reference (i) left                                                                                                    
                                  justify the data. If                                                                                                  
                                  not applicable, set                                                                                                   
                                  I=66. If unknown, set                                                                                                 
                                  I=99. (Use ``not                                                                                                      
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
62. Filler.....................  Reserved for future       302-303        2 N                                                                           
                                  use. Report ``not                                                                                                     
                                  applicable,'' set                                                                                                     
                                  I=66.                                                                                                                 
63. Language Proficiency         Main origin of skill          304        1 A  LA-JV-AC.........  X             X                                       
 Source, Second Language.         in a language. Enter                                                                                                  
                                  one character code                                                                                                    
                                  according to DoD                                                                                                      
                                  Standard Data Element                                                                                                 
                                  LA-JV, DoD 5000.12-M,                                                                                                 
                                  reference (i). If not                                                                                                 
                                  applicable, set I=W.                                                                                                  
                                  If unknown, set I=Z.                                                                                                  
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
64. Year and Month of Last       The YYMM part of the      305-308        4 N  YE-NH-AC.........  X             X                                       
 Proficiency Test of Second       evaluation date of an                                                                                                 
 Language.                        individual's last                                                                                                     
                                  proficiency test in a                                                                                                 
                                  second language.                                                                                                      
                                  ENTER: YYMM. If not                                                                                                   
                                  applicable, set                                                                                                       
                                  I=6666. If unknown,                                                                                                   
                                  set I=9999. (Use                                                                                                      
                                  ``not applicable''                                                                                                    
                                  for PJ and PK).                                                                                                       
65. Third Language               A language in which an    309-310        2 A  LA-JM-AD.........  X             X             ............  ............
 Identifier.                      individual possesses                                                                                                  
                                  proficiency. Enter                                                                                                    
                                  language code                                                                                                         
                                  according to DoD                                                                                                      
                                  Standard Data Element                                                                                                 
                                  LA-JM, DoD 5000.12-M,                                                                                                 
                                  reference (i).                                                                                                        
                                  (Report the Language,                                                                                                 
                                  other than English                                                                                                    
                                  in, which an                                                                                                          
                                  individual has the                                                                                                    
                                  third highest                                                                                                         
                                  proficiency level,                                                                                                    
                                  based on the Defense                                                                                                  
                                  Language Proficiency                                                                                                  
                                  Test (DPLT).)) If not                                                                                                 
                                  applicable, set I=WW.                                                                                                 
                                  If unknown, set I=ZZ.                                                                                                 
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.)                                                                                                              
66. Year and Month, Reserve      Enter the YYMM part of    311-314        4 N  YE-NH-AZ.........  X             X             ............  ............
 Component Incentive Program      the date that an                                                                                                      
 Eligibility Effective Date.      individual became                                                                                                     
                                  eligible for a                                                                                                        
                                  Reserve Incentive                                                                                                     
                                  Program component                                                                                                     
                                  bonus or stipend                                                                                                      
                                  under the Reserve                                                                                                     
                                  Incentive Program. If                                                                                                 
                                  not applicable, set                                                                                                   
                                  I=6666. If unknown,                                                                                                   
                                  set I=9999. ENTER:                                                                                                    
                                  YYMM. (Use ``not                                                                                                      
                                  applicable'' for PJ                                                                                                   
                                  and PK.)                                                                                                              
67. Reserve Component Incentive  Enter the type of             315        1 A  RE-WA-AA.........  X             X             ............  ............
 Program Type.                    Reserve component                                                                                                     
                                  bonus or stipend for                                                                                                  
                                  any member of the                                                                                                     
                                  Ready Reserve, who is                                                                                                 
                                  appointed, enlists,                                                                                                   
                                  reenlists,                                                                                                            
                                  affiliates, or                                                                                                        
                                  extends in a Ready                                                                                                    
                                  Reserve Incentive                                                                                                     
                                  Program. If not                                                                                                       
                                  applicable, set I=W.                                                                                                  
                                  If unknown, set I=Z.                                                                                                  
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.)                                                                                                              
                                 A=Enlistment bonus (3-                                                                                                 
                                  year, PS only)                                                                                                        
                                 B=Enlistment bonus (6-                                                                                                 
                                  year, PS only)                                                                                                        
                                 C=Enlistment bonus (6-                                                                                                 
                                  year, NPS only)                                                                                                       
                                 D=Enlisted bonus                                                                                                       
                                  (converted from                                                                                                       
                                  educational                                                                                                           
                                  assistance)                                                                                                           
                                 E=Reenlistment bonus                                                                                                   
                                  (3-year, Selected                                                                                                     
                                  Reserve)                                                                                                              

[[Page 641]]

                                                                                                                                                        
                                 F=Reenlistment bonus                                                                                                   
                                  (6-year, Selected                                                                                                     
                                  Reserve)                                                                                                              
                                 G=Reenlistment bonus                                                                                                   
                                  (3-year, IRR)                                                                                                         
                                 H=Reenlistment bonus                                                                                                   
                                  (6-year, IRR)                                                                                                         
                                 J=Affiliation bonus                                                                                                    
                                  (18-months or less                                                                                                    
                                  left on MSO)                                                                                                          
                                 K=Affiliation bonus                                                                                                    
                                  (18-months or more                                                                                                    
                                  left on MSO)                                                                                                          
                                 L=Stipend under HPSP                                                                                                   
                                  (health                                                                                                               
                                  professionals,                                                                                                        
                                  officers ONLY)                                                                                                        
                                 M=Health Professional                                                                                                  
                                  Stipend Program for                                                                                                   
                                  Reserve Service                                                                                                       
                                  (health                                                                                                               
                                  professionals,                                                                                                        
                                  officers ONLY) FY                                                                                                     
                                  1988                                                                                                                  
                                 N=Eligibility                                                                                                          
                                  suspended--Service                                                                                                    
                                  member has been                                                                                                       
                                  granted a period of                                                                                                   
                                  authorized non-                                                                                                       
                                  availability                                                                                                          
                                  (missionary)                                                                                                          
                                 P=Eligibility                                                                                                          
                                  suspended--Service                                                                                                    
                                  member has been                                                                                                       
                                  granted a period of                                                                                                   
                                  authorized non-                                                                                                       
                                  availability (all                                                                                                     
                                  others)                                                                                                               
                                 Q=Eligibility                                                                                                          
                                  reinstated--Service                                                                                                   
                                  member reaffiliates                                                                                                   
                                  with Selected Reserve                                                                                                 
                                  following a period of                                                                                                 
                                  authorized non-                                                                                                       
                                  availability                                                                                                          
                                 R=Enlisted bonus (3-                                                                                                   
                                  year Selected                                                                                                         
                                  Reserve)                                                                                                              
                                 S=Enlisted bonus (6-                                                                                                   
                                  year Selected                                                                                                         
                                  Reserve)                                                                                                              
68. Reserve Component Incentive  Enter the type of             316        1 A  Standard pending.  X             X             ............  ............
 Program Education Type.          Reserve component                                                                                                     
                                  educational incentive                                                                                                 
                                  for a member of the                                                                                                   
                                  Ready Reserve who is                                                                                                  
                                  appointed, enlists,                                                                                                   
                                  reenlists,                                                                                                            
                                  affiliates, or                                                                                                        
                                  extends in a Ready                                                                                                    
                                  Reserve Incentive                                                                                                     
                                  Program. That does                                                                                                    
                                  not include the                                                                                                       
                                  Montgomery G.I. Bill                                                                                                  
                                  (MGIB), (10 U.S.C.                                                                                                    
                                  Chapter 106,                                                                                                          
                                  reference (h)). If                                                                                                    
                                  not applicable, set                                                                                                   
                                  I=W. If unknown, set                                                                                                  
                                  I=Z. (Use ``not                                                                                                       
                                  applicable'' for PJ                                                                                                   
                                  and PK.)                                                                                                              
                                 A=Educational                                                                                                          
                                  assistance (other                                                                                                     
                                  than MGIB, Chapter                                                                                                    
                                  106 of reference (h))                                                                                                 
                                 B=Educational                                                                                                          
                                  assistance (converted                                                                                                 
                                  from bonus)                                                                                                           
                                 C=Educational loan                                                                                                     
                                  repayment (enlisted                                                                                                   
                                  only) assistance                                                                                                      
                                 D=Educational loan                                                                                                     
                                  repayment (health                                                                                                     
                                  professionals,                                                                                                        
                                  officers only)                                                                                                        
69. Year and Month Reserve       Enter the YYMM part of    317-322        6 N  YE-NH-BA.........  X             X             ............  ............
 Component Incentive Program      the date that the                                                                                                     
 Eligibility Terminated.          individual's                                                                                                          
                                  eligibility for a                                                                                                     
                                  Reserve component                                                                                                     
                                  bonus or stipend was                                                                                                  
                                  terminated under the                                                                                                  
                                  Reserve Component                                                                                                     
                                  Incentive Program.                                                                                                    
                                  Left justify the data                                                                                                 
                                  with zero fill. If                                                                                                    
                                  not applicable, set                                                                                                   
                                  I=666666. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMMDD. (Use ``not                                                                                                    
                                  applicable'' for PJ                                                                                                   
                                  and PK.)                                                                                                              
70. Montgomery GI Bill (MGIB)    Title 38 U.S.C.               323       1 AN  Standard pending.  X             ............  ............  ............
 Enrollment Status (Title 38,     Chapter 30, and DoD                                                                                                   
 U.S.C., Chapter 30, reference    Directive 1322.16                                                                                                     
 (g)).                            (reference (g) and                                                                                                    
                                  (h)). If not                                                                                                          
                                  applicable, set I=W.                                                                                                  
                                  If unknown, set I=Z.                                                                                                  

[[Page 642]]

                                                                                                                                                        
                                 1=Ineligible--Service                                                                                                  
                                  member first entered                                                                                                  
                                  on AD before July 1,                                                                                                  
                                  1985                                                                                                                  
                                 2=Enrolled--Service                                                                                                    
                                  member has not                                                                                                        
                                  executed a                                                                                                            
                                  declination of                                                                                                        
                                  enrollment.                                                                                                           
                                 3=Ineligible--after                                                                                                    
                                  December 31, 1976,                                                                                                    
                                  Service member                                                                                                        
                                  received a commission                                                                                                 
                                  as an officer upon                                                                                                    
                                  graduation from a                                                                                                     
                                  Service academy or                                                                                                    
                                  completion of a ROTC                                                                                                  
                                  scholarship                                                                                                           
                                  educational                                                                                                           
                                  assistance program.                                                                                                   
                                 4=Enrolled--Service                                                                                                    
                                  member on AD for a                                                                                                    
                                  period of obligated                                                                                                   
                                  service of less than                                                                                                  
                                  3 years.                                                                                                              
                                 5=Enrolled--Service                                                                                                    
                                  member on AD for a                                                                                                    
                                  period of obligated                                                                                                   
                                  service of 3 years or                                                                                                 
                                  more.                                                                                                                 
                                 6=Ineligible--Service                                                                                                  
                                  member declined                                                                                                       
                                  enrollment.                                                                                                           
                                 G=Enrolled during open                                                                                                 
                                  period--Service                                                                                                       
                                  member on AD for a                                                                                                    
                                  period of obligated                                                                                                   
                                  service of less than                                                                                                  
                                  3 years.                                                                                                              
                                 H=Enrolled during open                                                                                                 
                                  period--Service                                                                                                       
                                  member on AD for a                                                                                                    
                                  period of obligated                                                                                                   
                                  service of 3 years or                                                                                                 
                                  more.                                                                                                                 
71. MGIB Monthly Authorized      If not applicable, set        324       1 AN  Service specific.  X             ............  ............  ............
 Increased Basic Allowance        I=W. Includes Army                                                                                                    
 Amount (Kicker), (Title 38,      College Fund and Navy                                                                                                 
 U.S.C., Chapter 30).             Sea College. ENTER:                                                                                                   
                                  Amount code from                                                                                                      
                                  specific Service.                                                                                                     
72. MGIB Monthly Supplemental    If not applicable, set        325       1 AN  Service specific.  X             ............  ............  ............
 Allowance Amount, Title 38,      I=W. ENTER: Amount                                                                                                    
 U.S.C., (Chapter 30 of           code from specific                                                                                                    
 reference (g)).                  Service.                                                                                                              
73. Date of Declaration of MGIB  The date a Service        326-331        6 N  DA-FA............  X             ............  ............  ............
 Enrollment, Title 38, U.S.C.     member accepts or                                                                                                     
 Chapter 30 of reference (g).     declines enrollment                                                                                                   
                                  in the Active                                                                                                         
                                  component MGIB                                                                                                        
                                  (reference (g)). If                                                                                                   
                                  not applicable, set                                                                                                   
                                  I=666666. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMMDD.                                                                                                               
74. Filler.....................  Reserved for future       332-337        6 N  .................  ............  ............  ............  ............
                                  use. Report as not                                                                                                    
                                  applicable, set                                                                                                       
                                  I=666666.                                                                                                             
75. Key Employees..............  Report key employees          338        1 A  Standard pending.  X             ............  X             X           
                                  in the Standby                                                                                                        
                                  Reserve on Active and                                                                                                 
                                  Inactive Status and                                                                                                   
                                  those on Reserve                                                                                                      
                                  Retired Status, per                                                                                                   
                                  (DoD Directive                                                                                                        
                                  1200.7), reference                                                                                                    
                                  (f). If not                                                                                                           
                                  applicable, set I=W.                                                                                                  
                                  If unknown, set I=Z.                                                                                                  
                                  Enter C=key employee.                                                                                                 
76. MGIB Eligibility Status      Chapter 106 of                339        1 A  Standard pending.  X             ............  ............  ............
 Title 10, U.S.C. Chapter 106,    reference (h) and DoD                                                                                                 
 of reference (h).                Instruction 1322.17                                                                                                   
                                  (references (m)). If                                                                                                  
                                  not applicable, set                                                                                                   
                                  I=W. If unknown, set                                                                                                  
                                  I=Z.                                                                                                                  
                                 Eligible:                                                                                                              
                                 F=Eligible--meets the                                                                                                  
                                  eligibility criteria                                                                                                  
                                  under reference (h)                                                                                                   
                                 R=Eligible--disability                                                                                                 
                                  not the result of                                                                                                     
                                  individual's willful                                                                                                  
                                  misconduct                                                                                                            
                                 Ineligible:                                                                                                            

[[Page 643]]

                                                                                                                                                        
                                 A=Ineligible--Service                                                                                                  
                                  member has completed                                                                                                  
                                  the course of                                                                                                         
                                  instruction required                                                                                                  
                                  for the award of a                                                                                                    
                                  baccalaureate or                                                                                                      
                                  equivalent degree and                                                                                                 
                                  has not executed a 6-                                                                                                 
                                  year obligation in                                                                                                    
                                  the Selected Reserve                                                                                                  
                                  after 30 September,                                                                                                   
                                  1990                                                                                                                  
                                 B=Ineligible--Service                                                                                                  
                                  member in receipt of                                                                                                  
                                  an ROTC scholarship                                                                                                   
                                 C=Ineligible--Service                                                                                                  
                                  member has not                                                                                                        
                                  executed a 6-year                                                                                                     
                                  enlistment/                                                                                                           
                                  reenlistment or                                                                                                       
                                  extension of service                                                                                                  
                                  in the Selected                                                                                                       
                                  Reserve after June                                                                                                    
                                  30, 1985                                                                                                              
                                 D=Ineligible--Service                                                                                                  
                                  member has executed a                                                                                                 
                                  6-year enlistment/                                                                                                    
                                  reenlistment or                                                                                                       
                                  extension in the                                                                                                      
                                  Selected Reserve                                                                                                      
                                  after June 30, 1985,                                                                                                  
                                  but has not completed                                                                                                 
                                  IADT as prescribed by                                                                                                 
                                  the Secretary of the                                                                                                  
                                  Military Department                                                                                                   
                                  (includes split                                                                                                       
                                  training option)                                                                                                      
                                 E=Ineligible--Service                                                                                                  
                                  member did not                                                                                                        
                                  receive a secondary                                                                                                   
                                  school diploma (or                                                                                                    
                                  equivalency                                                                                                           
                                  certificate) before                                                                                                   
                                  completion of IADT                                                                                                    
                                  (NPS) or before                                                                                                       
                                  execution of a 6-year                                                                                                 
                                  enlistment/                                                                                                           
                                  reenlistment or                                                                                                       
                                  extension of service                                                                                                  
                                  in the Selected                                                                                                       
                                  Reserve. (PS)                                                                                                         
                                 G=Ineligible--correcti                                                                                                 
                                  on of erroneous                                                                                                       
                                  report of eligibility                                                                                                 
                                 S=Ineligible--Eligibil                                                                                                 
                                  ity terminated FTS                                                                                                    
                                  and/or AGR who gained                                                                                                 
                                  entitlement to the                                                                                                    
                                  MGIB, on or after,                                                                                                    
                                  October 1, 1990, are                                                                                                  
                                  not eligible for                                                                                                      
                                  Chapter 106, of                                                                                                       
                                  reference (h)                                                                                                         
                                 Eligibility terminated                                                                                                 
                                 H=Eligibility                                                                                                          
                                  terminated--Service                                                                                                   
                                  member has been                                                                                                       
                                  determined to be an                                                                                                   
                                  unsatisfactory                                                                                                        
                                  participant or                                                                                                        
                                  performer                                                                                                             
                                 I=Eligibility                                                                                                          
                                  terminated--Expiratio                                                                                                 
                                  n of 10 year                                                                                                          
                                  eligibility period.                                                                                                   
                                 J=Eligibility                                                                                                          
                                  terminated--Service                                                                                                   
                                  member has completed                                                                                                  
                                  a course of                                                                                                           
                                  instruction required                                                                                                  
                                  for the award of a                                                                                                    
                                  baccalaureate degree                                                                                                  
                                  or equivalent degree                                                                                                  
                                  and has not executed                                                                                                  
                                  a 6-year obligation                                                                                                   
                                  in the Selected                                                                                                       
                                  Reserve after 30                                                                                                      
                                  September, 1990.                                                                                                      
                                 K=Eligibility                                                                                                          
                                  terminated--Service                                                                                                   
                                  member in receipt of                                                                                                  
                                  an ROTC scholarship.                                                                                                  
                                 L=Eligibility                                                                                                          
                                  terminated--Service                                                                                                   
                                  member died, Service                                                                                                  
                                  member separated, or                                                                                                  
                                  transferred from the                                                                                                  
                                  Selected Reserve.                                                                                                     
                                 Eligibility Suspended:                                                                                                 
                                 M=Eligibility                                                                                                          
                                  suspended--Service                                                                                                    
                                  member awaiting final                                                                                                 
                                  determination of                                                                                                      
                                  unsatisfactory                                                                                                        
                                  participation or                                                                                                      
                                  performance.                                                                                                          
                                 N=Eligibility                                                                                                          
                                  suspended--Service                                                                                                    
                                  member has been                                                                                                       
                                  granted a period of                                                                                                   
                                  authorized non-                                                                                                       
                                  availability                                                                                                          
                                  (missionary).                                                                                                         
                                 P=Eligibility                                                                                                          
                                  suspended--Service                                                                                                    
                                  member has been                                                                                                       
                                  granted a period of                                                                                                   
                                  authorized                                                                                                            
                                  nonavailability (all                                                                                                  
                                  others).                                                                                                              
                                 Eligibility                                                                                                            
                                  Reinstated:                                                                                                           
                                 Q=Eligibility                                                                                                          
                                  reinstated--Service                                                                                                   
                                  member has                                                                                                            
                                  reaffiliated with the                                                                                                 
                                  Selected Reserve                                                                                                      
                                  following a period of                                                                                                 
                                  authorized non-                                                                                                       
                                  availability.                                                                                                         
77. MGIB Eligibility Start       Report the eligibility    340-345        6 N  DA-FA............  X             ............  ............  ............
 Date. Chapter 106 of reference   start date stated in                                                                                                  
 (h).                             Block 10 of the DD                                                                                                    
                                  Form 2384,                                                                                                            
                                  ``Educational                                                                                                         
                                  Assistance Program                                                                                                    
                                  (GI Bill) Notice of                                                                                                   
                                  Basic Eligibility                                                                                                     
                                  (NOBE).'' If not                                                                                                      
                                  applicable, set                                                                                                       
                                  I=666666. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMMDD.                                                                                                               

[[Page 644]]

                                                                                                                                                        
78. MGIB Eligibility Stop Date.  If not applicable, set    346-351        6 N  DA-FA............  X             ............  ............  ............
 Title 10, U.S.C. Chapter 106     I=666666. If unknown,                                                                                                 
 of reference (h).                set I=999999. ENTER:                                                                                                  
                                  YYMNDD. If record                                                                                                     
                                  filed 76 (MGIB                                                                                                        
                                  eligibility                                                                                                           
                                  status)=H, I, J, K,                                                                                                   
                                  L, M, N, or P.                                                                                                        
79. Months of Reserve Component  Months of MGIB            352-353       2 AN  10-TT-14.........  X             ............  ............  ............
 MGIB, Obligated Service          obligated service                                                                                                     
 remaining. Title 10, U.S.C.      remaining at                                                                                                          
 Chapter 106, of reference (h).   termination or                                                                                                        
                                  suspension of Reserve                                                                                                 
                                  component MGIB                                                                                                        
                                  eligibility                                                                                                           
                                  (reference (h)). If                                                                                                   
                                  not applicable, set                                                                                                   
                                  I=WW. If unknown, set                                                                                                 
                                  I=ZZ. ENTER: OO-72.                                                                                                   
80. Date of Execution of a 6-    Reporting requirement     354-359       6 AN  DA-FA............  X             ............  ............  ............
 year Service Obligation of a     applies to all                                                                                                        
 Selected Reserve Member (MGIB)   Selected Reserve                                                                                                      
 (ref. (h)).                      Members. If not                                                                                                       
                                  applicable, set                                                                                                       
                                  I=666666. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMNDD.                                                                                                               
81. Effective Date of Current    Reporting requirement     360-365        6 N  DA-FA............  X             X             X             ............
 Enlistment, Reenlistment, or     applies to enlisted                                                                                                   
 Extension of Enlistment          personnel. Report                                                                                                     
 Agreement.                       effective date. If                                                                                                    
                                  unknown, set                                                                                                          
                                  I=999999.If not                                                                                                       
                                  applicable, set                                                                                                       
                                  I=666666. ENTER:                                                                                                      
                                  YYMMDD. (Use ``not                                                                                                    
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
82. MGIB Benefit Recoupment      Report recoupment             366        1 N  DA-FA............  X             ............  ............  ............
 Status Chapter 106 of            status at termination                                                                                                 
 reference (h).                   of eligibility. If                                                                                                    
                                  not applicable, set                                                                                                   
                                  I=6. If unknown, set                                                                                                  
                                  I=9. (Use ``not                                                                                                       
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
                                 1=Recoupment not                                                                                                       
                                  required.                                                                                                             
                                 2=Recoupment required,                                                                                                 
                                  not waived.                                                                                                           
                                 3=Recoupment required,                                                                                                 
                                  waived.                                                                                                               
83. Total Days Active Federal    Enter the total number    367-371        5 N  10-TT-03-AP......  X             X             X             ............
 Military Service.                of days of active                                                                                                     
                                  Federal Service to                                                                                                    
                                  include AD, temporary                                                                                                 
                                  tours of AD (TTAD),                                                                                                   
                                  special AD for                                                                                                        
                                  training (SADT)                                                                                                       
                                  annual training (AT),                                                                                                 
                                  (IADT), full time                                                                                                     
                                  training duty (FTTD),                                                                                                 
                                  AD for support, and                                                                                                   
                                  TEMAC active duty                                                                                                     
                                  mandays. Reporting                                                                                                    
                                  for AGR personnel is                                                                                                  
                                  optional. If not                                                                                                      
                                  applicable, set                                                                                                       
                                  I=66666. If unknown,                                                                                                  
                                  set I=99999. (Use                                                                                                     
                                  ``not applicable''                                                                                                    
                                  for PJ and PK.).                                                                                                      
84. Number of Years Creditable   Enter number of years     372-373        2 N  10-TT-28-AE......  X             X             X             X           
 for Reserve Retirement.          creditable toward                                                                                                     
                                  Reserve retirement;                                                                                                   
                                  e.g., 50 points, or                                                                                                   
                                  more, for a                                                                                                           
                                  satisfactory year,                                                                                                    
                                  under section 1331 of                                                                                                 
                                  reference (h).                                                                                                        
                                  Reporting for AGR                                                                                                     
                                  personnel is                                                                                                          
                                  optional. If not                                                                                                      
                                  applicable, set I=66.                                                                                                 
                                  If unknown, set I=99.                                                                                                 
                                  (Use ``not                                                                                                            
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
85. Reserve Component            Report annually on        374-376        3 N  RE-WX-AB.........  X             X             X             X           
 Accumulated Total Creditable     September file. Enter                                                                                                 
 Retirement Points Earned Last    total Reserve                                                                                                         
 Retirement Year.                 component retirement                                                                                                  
                                  points (to be used in                                                                                                 
                                  the retirement                                                                                                        
                                  calculations) earned                                                                                                  
                                  by an individual                                                                                                      
                                  during the most                                                                                                       
                                  recently completed                                                                                                    
                                  retirement and/or                                                                                                     
                                  retention year as of                                                                                                  
                                  the end of the FY.                                                                                                    
                                  Chapter 67 of                                                                                                         
                                  reference (h).                                                                                                        
                                  Reporting for AGR                                                                                                     
                                  personnel is                                                                                                          
                                  optional. If not                                                                                                      
                                  applicable, set                                                                                                       
                                  I=666. If unknown,                                                                                                    
                                  set I=999. (Use ``not                                                                                                 
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             

[[Page 645]]

                                                                                                                                                        
86. Reserve Component Total      Report annually on        377-379        3 N  RE-WX-AC.........  X             X             X             X           
 Number of Accumulated Paid       September file. Enter                                                                                                 
 Points Earned This Year.         total Reserve                                                                                                         
                                  components paid                                                                                                       
                                  points earned by the                                                                                                  
                                  individual during the                                                                                                 
                                  most recently                                                                                                         
                                  completed retirement                                                                                                  
                                  and/or retention                                                                                                      
                                  year, as of the end                                                                                                   
                                  of the FY. ``Paid''                                                                                                   
                                  refers to any point                                                                                                   
                                  for which the Service                                                                                                 
                                  member received basic                                                                                                 
                                  pay, whether                                                                                                          
                                  creditable or not                                                                                                     
                                  creditable toward                                                                                                     
                                  retirement. Chapter                                                                                                   
                                  67 of reference (h).                                                                                                  
                                  Reporting for AGR is                                                                                                  
                                  optional. If not                                                                                                      
                                  applicable, set                                                                                                       
                                  I=666. If unknown,                                                                                                    
                                  set I=999. (Use ``not                                                                                                 
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
87. Reserve Component Total      Report annually on        380-384        5 N  RE-WX-AD.........  X             X             X             X           
 Number of Accumulated            September file. Enter                                                                                                 
 Creditable Points Earned         Reserve component                                                                                                     
 During Career Toward             career total points                                                                                                   
 Retirement.                      earned by an                                                                                                          
                                  individual creditable                                                                                                 
                                  toward retirement                                                                                                     
                                  through the most                                                                                                      
                                  recently completed                                                                                                    
                                  retirement retention                                                                                                  
                                  year, as of the end                                                                                                   
                                  of the FY (Chapter 67                                                                                                 
                                  of reference (h)).                                                                                                    
                                  Reporting for AGR                                                                                                     
                                  personnel is                                                                                                          
                                  optional. If not                                                                                                      
                                  applicable, set                                                                                                       
                                  I=66666. If unknown,                                                                                                  
                                  set I=99999. (Use                                                                                                     
                                  ``not applicable''                                                                                                    
                                  for PJ and PK.).                                                                                                      
88. Notification of Eligibility  Indicates that an             385        1 N  NO-PI-AA.........  X             X             X             X           
 for Military Retirement Pay      individual has, or                                                                                                    
 Indicator.                       has not, been issued                                                                                                  
                                  notification of                                                                                                       
                                  eligibility for                                                                                                       
                                  retired pay on                                                                                                        
                                  completion of all                                                                                                     
                                  requirements by                                                                                                       
                                  Section 1331(d) of                                                                                                    
                                  reference (h) and DoD                                                                                                 
                                  Directive 1200.15                                                                                                     
                                  (reference (k)).                                                                                                      
                                  Reporting for AGR                                                                                                     
                                  personnel is                                                                                                          
                                  optional. The                                                                                                         
                                  synonymous name is                                                                                                    
                                  ``20-year letter                                                                                                      
                                  indicator.'' If                                                                                                       
                                  unknown, set I=9. If                                                                                                  
                                  not applicable, set                                                                                                   
                                  I=6. (Use ``not                                                                                                       
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
                                 0=Notification of                                                                                                      
                                  eligibility for                                                                                                       
                                  retired pay not                                                                                                       
                                  issued.                                                                                                               
                                 1=Notification of                                                                                                      
                                  eligibility for                                                                                                       
                                  retired pay issued.                                                                                                   
89. Date of Transfer to the      The date a Service        386-391        6 N  DA-FA-BG.........  ............  ............  ............  X           
 Retired Reserve.                 member reported in                                                                                                    
                                  the RCCPDS was                                                                                                        
                                  assigned to any                                                                                                       
                                  category in the                                                                                                       
                                  Retired Reserve. If                                                                                                   
                                  not applicable, set                                                                                                   
                                  I=666666. If unknown,                                                                                                 
                                  set I=999999. ENTER:                                                                                                  
                                  YYMMDD. (Use ``not                                                                                                    
                                  applicable'' for PJ                                                                                                   
                                  and PK.).                                                                                                             
90. Date of Transfer to the      The date a Service        392-397        6 N  DA-FA-BH.........  ............  X             ............  ............
 Standby Reserve.                 member was                                                                                                            
                                  transferred to the                                                                                                    
                                  Inactive Standby                                                                                                      
                                  Reserve (10 U.S.C.                                                                                                    
                                  1209 reference (h)).                                                                                                  
                                  If not applicable,                                                                                                    
                                  set I=666666. If                                                                                                      
                                  unknown, set                                                                                                          
                                  I=999999. ENTER                                                                                                       
                                  YYMMDD.                                                                                                               
91. Privacy Act reference(a)     Indicates if the              398        1 N  PR-MG-AA.........  X             X             X             X           
 Disputed Record Indicator.       individual has filed                                                                                                  
                                  a statement of                                                                                                        
                                  disagreement as                                                                                                       
                                  provided by the                                                                                                       
                                  Privacy Program (DoD                                                                                                  
                                  Directive 5400.11,                                                                                                    
                                  reference (c)),                                                                                                       
                                  regardless of                                                                                                         
                                  informational item in                                                                                                 
                                  dispute.                                                                                                              
                                 1=No statement of                                                                                                      
                                  disagreement filed.                                                                                                   
                                 2=A statement of                                                                                                       
                                  disagreement has been                                                                                                 
                                  filed.                                                                                                                
92. Transaction Codes..........  Leave blank for master    399-400       2 AN  Non-standard.....  X             X             X             X           
                                  record.                                                                                                               
93. Separation Codes...........  Leave blank for master    401-405        5 N  .................  ............  ............  ............  ............
                                  record. (To be used                                                                                                   
                                  with loss Codes                                                                                                       
                                  ``L1'').                                                                                                              
94. Transaction Effective Date.  Leave blank for master    406-411        6 N  Non-standard.....  X             X             X             X           
                                  record.                                                                                                               
95. Reenlistment Eligibility     Leave blank for master    412-413       2 AN  Non-standard.....  X             X             X             X           
 Code.                            record.                                                                                                               

[[Page 646]]

                                                                                                                                                        
96. Program Objective            That code structure       414-421       8 AN  Service specific.  X             X             ............  ............
 Memorandum (POM) Defense Plan    (DoD 7045.7-H,                                                                                                        
 Program Structure (Program       reference (g))                                                                                                        
 Element Code (PEC)).             identifies units,                                                                                                     
                                  resources, and                                                                                                        
                                  personnel related to                                                                                                  
                                  a specific mission or                                                                                                 
                                  weapons system. One                                                                                                   
                                  code should identify                                                                                                  
                                  all individuals in a                                                                                                  
                                  unit. IMAs shall                                                                                                      
                                  carry the PEC of the                                                                                                  
                                  unit they augment                                                                                                     
                                  upon mobilization. If                                                                                                 
                                  not applicable, set                                                                                                   
                                  I=WWWWWWWW. If                                                                                                        
                                  unknown, set                                                                                                          
                                  I=ZZZZZZZZ.                                                                                                           
97. Service Occupation Code      Enter up to eight most    422-429       8 AN  Service specific.  X             X             X             X           
 (Secondary).                     significant                                                                                                           
                                  characters indicating                                                                                                 
                                  the secondary                                                                                                         
                                  military skill held                                                                                                   
                                  by the individual.                                                                                                    
                                  Include a prefix or                                                                                                   
                                  suffix only, if space                                                                                                 
                                  permits. Report Army                                                                                                  
                                  enlisted MOS and ASI,                                                                                                 
                                  Army warrant officer                                                                                                  
                                  MOS and ASI, Army                                                                                                     
                                  commissioned officer                                                                                                  
                                  SSI and ASI, Navy                                                                                                     
                                  enlisted rating and                                                                                                   
                                  secondary NEC, Navy                                                                                                   
                                  officer secondary                                                                                                     
                                  subspecialty, Marine                                                                                                  
                                  Corps MOS, Air Force                                                                                                  
                                  AFSC, Coast Guard                                                                                                     
                                  officer experience                                                                                                    
                                  indicator, and Coast                                                                                                  
                                  Guard enlisted rating                                                                                                 
                                  and qualification                                                                                                     
                                  Code. (Left justify.)                                                                                                 
                                  If not applicable,                                                                                                    
                                  set I=WWWWWWWW. If                                                                                                    
                                  unknown, set                                                                                                          
                                  I=ZZZZZZZZ. (Use                                                                                                      
                                  ``not applicable''                                                                                                    
                                  for PJ and PK.).                                                                                                      
98. Career Management Field      Report for Army           430-431        2 N  Non-standard.....  X             X             X             X           
 (CMF), Enlisted.                 National Guard and                                                                                                    
                                  Reserve. If not                                                                                                       
                                  applicable, set I=66.                                                                                                 
                                  If unknown, set I=99.                                                                                                 
99. Date of Expiration of        Report the end of an      432-437        6 N  DA-FA............  X             ............  ............  ............
 Selected Reserve Commitment.     individual's Selected                                                                                                 
                                  Reserve commitment.                                                                                                   
                                  ENTER: YYMMDD. If                                                                                                     
                                  unknown, set                                                                                                          
                                  I=999999. If not                                                                                                      
                                  applicable, set                                                                                                       
                                  I=666666.                                                                                                             
100. Reason for Loss/Transfer    Reporting requirements    438-439        2 A  Standard-pending.  X             ............  ............  ............
 from Selected Reserve.           apply to all members                                                                                                  
                                  of the Selected                                                                                                       
                                  Reserve who transfer                                                                                                  
                                  from the Selected                                                                                                     
                                  Reserve to another                                                                                                    
                                  RCC in either the                                                                                                     
                                  same Reserve                                                                                                          
                                  component, or other                                                                                                   
                                  Reserve or Active                                                                                                     
                                  component or who are                                                                                                  
                                  discharged. For                                                                                                       
                                  Service members                                                                                                       
                                  assigned a separation                                                                                                 
                                  program designator                                                                                                    
                                  (SPD), reporting must                                                                                                 
                                  be consistent with                                                                                                    
                                  data reported in                                                                                                      
                                  record field 92b of                                                                                                   
                                  the transaction file                                                                                                  
                                  coding instruction.                                                                                                   
                                  If other, set I=XX.                                                                                                   
                                  If unkown, set I=ZZ.                                                                                                  
                                  Leave blank for                                                                                                       
                                  Master Record. For                                                                                                    
                                  individuals with                                                                                                      
                                  unsatisfactory                                                                                                        
                                  performance/                                                                                                          
                                  participation report                                                                                                  
                                  the following:                                                                                                        
                                 Up=Unsatisfactory                                                                                                      
                                  participation as                                                                                                      
                                  defined in DoD                                                                                                        
                                  Directive 1215.13                                                                                                     
                                  (reference (r)).                                                                                                      
                                 US=Misconduct (to                                                                                                      
                                  include misconduct                                                                                                    
                                  for purely military                                                                                                   
                                  offenses).                                                                                                            
101. Military Unit Designator    Enter ``UIC'' of          440-447       8 AN  Service specific.  X             X             ............  ............
 (Unit Identification Code).      Reserve unit where                                                                                                    
                                  Service member is                                                                                                     
                                  actually performing                                                                                                   
                                  duty. (Can be                                                                                                         
                                  different from ``unit                                                                                                 
                                  member is assigned                                                                                                    
                                  to''--see record                                                                                                      
                                  field 46). IMAs shall                                                                                                 
                                  carry the UIC of the                                                                                                  
                                  unit they augment on                                                                                                  
                                  mobilization. (Marine                                                                                                 
                                  Corps to submit RUC                                                                                                   
                                  and MCC, Air Force to                                                                                                 
                                  submit PAS code, Army                                                                                                 
                                  Reserve to submit 6                                                                                                   
                                  position UIC and                                                                                                      
                                  MUSARC code) If not                                                                                                   
                                  applicable, set                                                                                                       
                                  I=WWWWWWWW. If                                                                                                        
                                  unknown, set                                                                                                          
                                  I=ZZZZZZZZ.                                                                                                           

[[Page 647]]

                                                                                                                                                        
102. Circumstance of death.....  When loss code L7 is      448-449        2 A  Standard pending.  X             X             X             X           
                                  reported additional                                                                                                   
                                  information below is                                                                                                  
                                  required:                                                                                                             
                                 DD=Death as a                                                                                                          
                                  proximate result of                                                                                                   
                                  participating on                                                                                                      
                                  active or reserve                                                                                                     
                                  inactive duty.                                                                                                        
                                 DC=Death as a                                                                                                          
                                  proximate results of                                                                                                  
                                  participating on                                                                                                      
                                  active or reserve                                                                                                     
                                  inactive duty.                                                                                                        
                                 DA=Death under                                                                                                         
                                  adjudication.                                                                                                         
                                 If not applicable, set                                                                                                 
                                  I=WW.                                                                                                                 
103. Filler....................  Reserved for future           450        1 A  .................  ............  ............  ............  ............
                                  use. Report as ``not                                                                                                  
                                  applicable,'' set I=W.                                                                                                

[[Page 648]]

                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Appendix B to Part 114--Transaction and Editing Procedures For 
                            Submission Tapes

                         A. Transaction Concept

    1. All transactions flowing into the RCCPDS from the Reserve 
components apply to gains and losses (including transfers, reenlistments 
and extensions). Report the appropriate Reserve Component Category 
Designator (RCCD) and Reserve Component Training-Retirement Category 
Designator (RCTRCD) for all transactions, as follows:
    a. For accessions, use codes for gaining categories listed in record 
field 92.a.
    b. For transfers, use codes for categories to which transferred 
listed in record field 92.d.
    c. For losses, use codes for categories from which loss occurred 
listed in record field 92.b.
    2. The following conditions show examples of acceptable transaction 
practices:
    a. When a Service member is transferred from the IRR to the Standby 
Reserve, submit a transfer transaction i.e. TN.
    b. If a Service member transfers from one State to another, and 
continues as a Selected Reservist of the same Reserve component, submit 
no transaction.
    c. If a Service member is transferred from the IRR and/or ING (or 
Standby and/or Retired) to the Selected Reserve, submit a transfer 
transaction. Do not submit a corresponding loss transaction for the 
decrease in IRR strength.
    d. A loss to the Reserve component shall only be reported if a 
change from Reserve component appropriations to Active component 
appropriations occurs. That does not apply to Reserve component members 
performing duty for 180 days, or less, in support of an Active component 
mission that is being funded through Active component appropriations. 
Reserve component members shall be reported in RCCPDS in their current 
Reserve Component Category while performing that duty.
    3. The occurrence of multiple transactions during a single reporting 
period is unusual. However, those must be reported against the same 
record in the same update cycle. The following conditions shall apply:
    a. Include only valid gains, losses, transfers, reenlistments, and 
extensions.
    b. Do not report record corrections resulting from erroneous gains, 
losses, reenlistments, or extensions. For example, if an erroneous 
``loss'' is processed and then a corresponding ``gain'' is initiated 
during the same reporting cycle, do not report those transactions.
    c. Ensure that the transaction effective dates of the various 
transactions are different.

                             B. Edit Concept

    All data submitted to the RCCPDS must be edited by the Reserve 
components for validity, reliability, and consistency before submission 
to ensure that the Reserve component strengths match the official 
strengths produced from the RCCPDS. At the Department of Defense, all 
master files and transaction inputs are edited before file update to 
ensure the accuracy of files and resulting reports. Use the following 
edit procedures to screen all input:

                             1. Master Files

    a. Duplicate SSN in a Reserve Component's Submission. When a 
duplicate SSN is found, accept the first occurrence and reject 
subsequent occurrences.
    b. Duplicate SSNs Between Reserve Component Files. That procedure 
checks for duplication among Reserve components. It is applied after 
files are updated and does not result in rejects. As agreed to by the 
Reserve components, the DMDC shall provide each Reserve component 
periodic output from the RCCPDS to assist in reconciling errors. That 
maximally reduces the incidence of duplication, and encourages 
cooperation among the Reserve components.

                             2. Transactions

    a. Gains and Transfers. Check all gain and transfer transactions for 
Service member's status on last month's master file (previous month's 
submission).
    (1) A gain from outside the Reserve component is valid only if the 
Service member's record did not exist on the Reserve component's last 
month's master file. If the Service member's record already exists on 
last month's master file, the transaction shall reject and not be 
counted.
    (2) A transfer from inside the Reserve component (i.e. from IRR to 
Selected Reserve) is valid if the Service member's record existed on the 
Reserve component's last month's master file. If that condition is not 
satisfied, the transaction shall reject and not be counted.
    b. Losses. All current loss transactions are also reviewed with 
respect to a Service member's status on last month's master file. A loss 
to the Reserve component is valid, only if the Service member's record 
previously existed. If not, the loss transaction shall reject and not be 
counted.
    c. Gain and/or Loss. Where simultaneous gain and loss, and 
reenlistment and/or extension, transactions occur against the same 
record (SSN) during one reporting period, count each transaction.
    d. Reenlistment and/or Extension. A reenlistment and/or extension 
transaction is acceptable to the RCCPDS if the record identifies the 
Service member as a Reservist and that record is in the Reserve 
component's master

[[Page 649]]

file of the previous month. When those conditions cannot be validated, 
the transaction shall reject and not be counted.
    3. Master File and/or Transactions. Standard validity checks are 
made on all master file and transaction inputs to ensure that they 
conform to the code structure in Section 3 of this Instruction. For 
example, if a ``GA'' transaction were submitted, it would reject because 
its second character is ``ALPHA'' and the procedure requires a 
``NUMERIC'' second character. Validity errors in a record shall cause 
rejection of the entire record, only under the following circumstances:
    a. When the Reserve component code equals ``9''.
    b. When the SSN does not fit within the numeric boundaries 
established by the Social Security Administration.

           4. Master File and/or Transaction File Relationship

    a. During the month's reporting cycle, each gain, loss, 
reenlistment, extension, or transfer transaction shall have a 
corresponding impact on the master file for the same period. The 
following relationships exist:
    (1) When a gain transaction is submitted, report a master file 
record on that Service member during the same cycle.
    (2) When a loss transaction is reported, eliminate the master file 
record showing the Service member as a Reservist.
    (3) When a reenlistment and/or extension transaction is submitted, 
the corresponding master file for the same period must reflect the 
individual as being in a Reserve component.
    (4) When a transfer transaction occurs, the corresponding master 
file for the same period must reflect the individual as being in the new 
Reserve component category.
    b. All transactions that cannot satisfy the above relationship to 
the current master file shall reject and will not be counted.
      

[[Page 650]]

Pt. 114, App. C

                                      Appendix C to Part 114--Coding Instructions--Transaction File DD-RA (M) 1148                                      
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       Applicable to                    
   Record field and data item      Coding and remarks      Record     Length     DOD Std. data   -------------------------------------------------------
                                                          position    class          elem.           Sel Res       Irr/Ing      Stnby Res      Ret Res  
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                 The transaction file                                                                                                   
                                  is identified by the                                                                                                  
                                  RCS DD-RA(M)1148.                                                                                                     
                                  That RCS shall be                                                                                                     
                                  used to report gains,                                                                                                 
                                  transfers, losses,                                                                                                    
                                  and reenlistments and/                                                                                                
                                  or extensions for                                                                                                     
                                  members of the                                                                                                        
                                  Reserve.                                                                                                              
1-102. Transaction File........  In addition to a            1-450     450 AN  .................  X             X             X                         
                                  master record, a                                                                                                      
                                  transaction record                                                                                                    
                                  shall include items:                                                                                                  
                                  transaction codes and                                                                                                 
                                  the transaction                                                                                                       
                                  effective date.                                                                                                       
1-91. Master Record............  The first 398               1-398     398 AN  .................  X             X             X                         
                                  positions of data for                                                                                                 
                                  the transaction                                                                                                       
                                  record will be                                                                                                        
                                  identical to the                                                                                                      
                                  Master Record (see                                                                                                    
                                  enclosure 2).                                                                                                         
92. Transaction Codes..........  For gains to the          399-400       2 AN  Non-Standard.....  X             X             X                         
                                  Reserve components                                                                                                    
                                  (for both officers                                                                                                    
                                  and enlisted).                                                                                                        
  a. Gains.....................  G1=NPS: an individual                                                                                                  
                                  from civilian status                                                                                                  
                                  who has never served                                                                                                  
                                  previously in an                                                                                                      
                                  Active or Reserve                                                                                                     
                                  component, and has                                                                                                    
                                  not received credit                                                                                                   
                                  toward fulfillment of                                                                                                 
                                  his or her Military                                                                                                   
                                  Service Obligation                                                                                                    
                                  (MSO).                                                                                                                
                                 G3=From civil Life                                                                                                     
                                  (prior service)..                                                                                                     
                                 G4=Direct from active                                                                                                  
                                  duty (AD) to the                                                                                                      
                                  Reserve components..                                                                                                  
                                 G5=Gain from another                                                                                                   
                                  Reserve component                                                                                                     
                                  (i.e.) the USNR to                                                                                                    
                                  the USAFR, the USAR,                                                                                                  
                                  to the ARNG, etc.)..                                                                                                  
                                 G7=Other gain.........                                                                                                 
                                 G8=From enlisted to                                                                                                    
                                  officer status or                                                                                                     
                                  vice versa (shall                                                                                                     
                                  appear as a gain in                                                                                                   
                                  the officer file and                                                                                                  
                                  a loss in the                                                                                                         
                                  enlisted file, or                                                                                                     
                                  vice versa)..                                                                                                         
                                 G0=Reenlistment gain:                                                                                                  
                                  Individuals with a                                                                                                    
                                  break in Service of                                                                                                   
                                  more than 24 hours,                                                                                                   
                                  but less than 91                                                                                                      
                                  days, who have                                                                                                        
                                  reenlisted. That                                                                                                      
                                  transaction assumes                                                                                                   
                                  the individual was a                                                                                                  
                                  previous loss to                                                                                                      
                                  strength..                                                                                                            
  b. Losses....................  For losses from the       399-400       2 AN  Non-Standard.....  X             X             X                         
                                  Reserve components                                                                                                    
                                  (for both officers                                                                                                    
                                  and enlisted).                                                                                                        
                                 L1=Discharged to civil                                                                                                 
                                  life (a final or                                                                                                      
                                  complete discharge,                                                                                                   
                                  which severs all                                                                                                      
                                  contractual service                                                                                                   
                                  or statutory                                                                                                          
                                  obligations).                                                                                                         
                                 L2=To extended active                                                                                                  
                                  duty (EAD) any                                                                                                        
                                  Service only if                                                                                                       
                                  change from Reserve                                                                                                   
                                  appropriations to                                                                                                     
                                  Active component                                                                                                      
                                  appropriations..                                                                                                      
                                 L3=Loss to another                                                                                                     
                                  Reserve component                                                                                                     
                                  (i.e.) the USNR to                                                                                                    
                                  the USMCR, the ANG,                                                                                                   
                                  to the USCGR, etc.)..                                                                                                 
                                 L7=Death (See record                                                                                                   
                                  field 102 on master                                                                                                   
                                  and transaction file                                                                                                  
                                  for additional coding                                                                                                 
                                  instructions.).                                                                                                       
                                 L8=From enlisted to                                                                                                    
                                  officer status, or                                                                                                    
                                  vice versa (shall                                                                                                     
                                  appear as a ``loss''                                                                                                  
                                  in the enlisted file                                                                                                  
                                  and a ``gain'' in the                                                                                                 
                                  officer file or vice                                                                                                  
                                  versa)..                                                                                                              
                                 L0=Other losses which                                                                                                  
                                  cannot be classified                                                                                                  
                                  into the above codes..                                                                                                

[[Page 651]]

                                                                                                                                                        
  c. Reenlistments and/or        For immediate (in 24      399-400       2 AN  Non-Standard.....  X             X             X                         
   Extensions.                    hours) reenlistment                                                                                                   
                                  and/or extensions in                                                                                                  
                                  the Reserve                                                                                                           
                                  components.                                                                                                           
                                 Definition--A                                                                                                          
                                  reenlistment occurs                                                                                                   
                                  when an individual                                                                                                    
                                  immediately reenlists                                                                                                 
                                  (in 24 hours) on                                                                                                      
                                  expiration of his or                                                                                                  
                                  her Service contract,                                                                                                 
                                  or agreement, or                                                                                                      
                                  reenlists before the                                                                                                  
                                  expiration of his or                                                                                                  
                                  her Service contract,                                                                                                 
                                  or agreement, in the                                                                                                  
                                  same Reserve                                                                                                          
                                  component. An                                                                                                         
                                  extension occurs when                                                                                                 
                                  an individual                                                                                                         
                                  voluntarily extends                                                                                                   
                                  his or her service                                                                                                    
                                  contract, or                                                                                                          
                                  agreement in writing                                                                                                  
                                  beyond its normal                                                                                                     
                                  expiration date. A                                                                                                    
                                  break in Service of                                                                                                   
                                  over 24 hours but                                                                                                     
                                  less than 91 days, is                                                                                                 
                                  to be counted as a PS                                                                                                 
                                  gain (reenlistment)                                                                                                   
                                  and should be                                                                                                         
                                  reported with a gain                                                                                                  
                                  code of ``GO.''                                                                                                       
                                 M1=Immediate                                                                                                           
                                  reenlistment..                                                                                                        
                                 M2=Extension of                                                                                                        
                                  current enlistment                                                                                                    
                                  contract or                                                                                                           
                                  agreement..                                                                                                           
  d. Transfers.................  For intracomponent        399-400       2 AN  Non-Standard.....  X             X             X                         
                                  transfers between                                                                                                     
                                  Reserve categories.                                                                                                   
                                 TA=Selected Reserve                                                                                                    
                                  (other than AGR) to                                                                                                   
                                  AGR                                                                                                                   
                                 TB=Selected Reserve                                                                                                    
                                  (other than AGR) to                                                                                                   
                                  IRR                                                                                                                   
                                 TC=Selected Reserve                                                                                                    
                                  (other than AGR) to                                                                                                   
                                  ING                                                                                                                   
                                 TD=Selected Reserve                                                                                                    
                                  (other than AGR) to                                                                                                   
                                  Standby                                                                                                               
                                 TE=Selected Reserve                                                                                                    
                                  (other than AGR) to                                                                                                   
                                  Retired (V2)                                                                                                          
                                 TF=AGR to Selected                                                                                                     
                                  (other than AGR)                                                                                                      
                                 TG=AGR to IRR                                                                                                          
                                 TH=AGR to ING                                                                                                          
                                 TJ=AGR to Standby                                                                                                      
                                 TK=AGR to Retired (V2)                                                                                                 
                                 TL=IRR to AGR                                                                                                          
                                 TM=IRR to Selected                                                                                                     
                                  (other than AGR)                                                                                                      
                                 TN=IRR to Standby                                                                                                      
                                 TP=IRR to Retired (V2)                                                                                                 
                                 TQ=ING to AGR                                                                                                          
                                 TR=ING to Selected                                                                                                     
                                  (other than AGR)                                                                                                      
                                 TU=Standby to AGR                                                                                                      
                                 TV=Standby to Selected                                                                                                 
                                  (other than AGR)                                                                                                      
                                 TW=Standby to IRR                                                                                                      
                                 TY=Standby to Retired                                                                                                  
                                  (V2)                                                                                                                  
                                 TZ=Retired to AGR                                                                                                      
                                 T1=Retired to Selected                                                                                                 
                                  (other than AGR)                                                                                                      
                                 T2=Retired to IRR                                                                                                      
                                 T3=Retired to Standby                                                                                                  
                                 P0=Retired transferred                                                                                                 
                                  to retired status                                                                                                     
                                  other than V2                                                                                                         
                                 P1=Selected Reserve                                                                                                    
                                  transferred to                                                                                                        
                                  retired status other                                                                                                  
                                  than V2                                                                                                               
                                 P2=AGR transferred to                                                                                                  
                                  retired status other                                                                                                  
                                  than V2                                                                                                               
                                 P3=IRR transferred to                                                                                                  
                                  retired status other                                                                                                  
                                  than V2                                                                                                               
                                 P4=Standby transferred                                                                                                 
                                  to retired status                                                                                                     
                                  other than V2                                                                                                         
                                 For intercomponent                                                                                                     
                                  transfer within the                                                                                                   
                                  same Service                                                                                                          
                                 N1=Guard Selected to                                                                                                   
                                  Selected Reserve in                                                                                                   
                                  same service                                                                                                          
                                 N2=Guard Selected to                                                                                                   
                                  Reserve IRR                                                                                                           

[[Page 652]]

                                                                                                                                                        
                                 N3=Guard Selected to                                                                                                   
                                  Reserve-Standby for                                                                                                   
                                  reason other than                                                                                                     
                                  retirement                                                                                                            
                                 N4=Guard Selected to                                                                                                   
                                  Reserve-Standby for                                                                                                   
                                  purpose of retirement                                                                                                 
                                 N5=Guard AGR to                                                                                                        
                                  Reserve IRR                                                                                                           
                                 N6=Guard AGR to                                                                                                        
                                  Reserve-Standby for                                                                                                   
                                  reason other than                                                                                                     
                                  retirement                                                                                                            
                                 N7=Guard AGR to                                                                                                        
                                  Reserve-Standby for                                                                                                   
                                  the purpose of                                                                                                        
                                  retirement                                                                                                            
  e. Changes to Social Security  Changes to an             399-400       2 AN  Non-Standard.....  X             X             X                         
   Number or Name.                individual's SSN, or                                                                                                  
                                  name, shall be                                                                                                        
                                  submitted in an                                                                                                       
                                  abbreviated record                                                                                                    
                                  format consisting of:.                                                                                                
                                 Reserve component.....        1-2                                                                                      
                                 Old SSN...............       3-11                                                                                      
                                 Old name..............      12-38                                                                                      
                                 New name..............      39-65                                                                                      
                                 New SSN...............      66-74                                                                                      
                                 Filler................     75-398                                                                                      
                                 Transaction Codes.....    399-400                                                                                      
                                 S1--change to Service                                                                                                  
                                  member's SSN.                                                                                                         
                                 S2--change to Service                                                                                                  
                                  member's name.                                                                                                        
                                 Filler................    401-405                                                                                      
                                 Transaction effective     406-411                                                                                      
                                  date.                                                                                                                 
                                 Filler................    412-425                                                                                      
93. Separation Codes...........  For use in describing     401-405                                                                                      
                                  losses from the                                                                                                       
                                  Reserve component                                                                                                     
                                  (for both officers                                                                                                    
                                  and enlisted).                                                                                                        
                                  Applicable to loss                                                                                                    
                                  codes ``L1'' only,                                                                                                    
                                  for all other                                                                                                         
                                  transaction codes use                                                                                                 
                                  filler, set I=99999.                                                                                                  
                                 (1) Separation Program    401-403       3 AN  SE-KY-AA.........  X             X             X             X           
                                  Designator (SPD) code.                                                                                                
                                 (2) Character of              404        1 A  CH-DB-AA.........  X             X             X             X           
                                  Service.                                                                                                              
                                 (3) Filler. Reserved          405        1 A                     ............  ............  ............  ............
                                  for future use..                                                                                                      
                                 Report as ``not                                 ...............  ............  ............  ............  ............
                                  applicable,'' set I=W.                                                                                                
94. Transaction Effective Date.  The effective date of     406-411         6N  .................  X             X             X             X           
                                  a gain, loss,                                                                                                         
                                  reenlistment,                                                                                                         
                                  extension or transfer                                                                                                 
                                  in the Reserve                                                                                                        
                                  components. That date                                                                                                 
                                  supports the                                                                                                          
                                  transaction code                                                                                                      
                                  defined in record                                                                                                     
                                  field 92 and would be                                                                                                 
                                  submitted along with                                                                                                  
                                  it. ENTER: YYMMDD.                                                                                                    
95. Reeenlisted Eligibility      Report the                412-413       2 AN  Service Standard.  X             X             X             X           
 Code.                            reenlistment                                                                                                          
                                  eligibility code. If                                                                                                  
                                  not applicable, set                                                                                                   
                                  I=WW.                                                                                                                 

[[Page 653]]

                                                                                                                                                        
96. Five-Year Defense Plan       Leave blank for           414-421       8 AN                                                                           
 Program (FYDP) Structure         Transaction File.                                                                                                     
 Program Element Code (SPEC).                                                                                                                           
97. Service Occupation Code      Enter up to eight most    422-429        8 N  Service Specific.  X             X             X             X           
 (Secondary).                     significant                                                                                                           
                                  characters indicating                                                                                                 
                                  the secondary                                                                                                         
                                  military skill held                                                                                                   
                                  by the individual.                                                                                                    
                                  Include a prefix or                                                                                                   
                                  suffix, only if space                                                                                                 
                                  permits. Report Army                                                                                                  
                                  enlisted MOS and ASI,                                                                                                 
                                  Army warrant officer                                                                                                  
                                  MOS and ASI, Army                                                                                                     
                                  commissioned officer                                                                                                  
                                  SSI and ASI, Navy                                                                                                     
                                  enlisted rating and                                                                                                   
                                  secondary NEC, Navy                                                                                                   
                                  officer secondary                                                                                                     
                                  subspecialty, Marine                                                                                                  
                                  Corps MOS, Air Force                                                                                                  
                                  AFSC, Coast Guard                                                                                                     
                                  officer experience                                                                                                    
                                  indicator, and Coast                                                                                                  
                                  Guard enlisted rating                                                                                                 
                                  and qualification                                                                                                     
                                  code. (Left justify).                                                                                                 
                                  If not applicable,                                                                                                    
                                  set I=WWWWWWWW. If                                                                                                    
                                  unknown, set                                                                                                          
                                  I=ZZZZZZZZ. (Not                                                                                                      
                                  required for PJ and                                                                                                   
                                  PK.).                                                                                                                 
98. Career Management Field      Report for ARNG. If       430-431        2 N  Standard Pending.  X             X             X             X           
 (CMF), Enlisted.                 not applicable, set                                                                                                   
                                  I=66. If unknown, set                                                                                                 
                                  I=99.                                                                                                                 
99. Date of Expiration of        Report the end of an      432-437        6 N  Standard Pending.  X             X             X             X           
 Selected Reserve Commitment.     individuals Selected                                                                                                  
                                  Reserve commitment.                                                                                                   
                                  Enter YYMMDD. If                                                                                                      
                                  unknown set I=99.                                                                                                     
100. Reason for Loss/Transfer    Reporting requirements    438-439        2 A  Standard Pending.  X             X             X             X           
 from Selected Reserve.           apply to all members                                                                                                  
                                  of the Selected                                                                                                       
                                  Reserve who transfer                                                                                                  
                                  from the Selected                                                                                                     
                                  Reserve to another                                                                                                    
                                  RCC in either the                                                                                                     
                                  same Reserve                                                                                                          
                                  component, other                                                                                                      
                                  Reserve or Active                                                                                                     
                                  compoennt or who are                                                                                                  
                                  discharged. For                                                                                                       
                                  Service members                                                                                                       
                                  assigned a SPD                                                                                                        
                                  reporting must be                                                                                                     
                                  consistent with data                                                                                                  
                                  reported in record                                                                                                    
                                  field 92b of the                                                                                                      
                                  Transaction File                                                                                                      
                                  Coding Instruction.                                                                                                   
                                  If other, set I=XX.                                                                                                   
                                  If unknown, set I=ZZ.                                                                                                 
                                  For individuals with                                                                                                  
                                  unsatisfactory                                                                                                        
                                  performance/                                                                                                          
                                  participation report                                                                                                  
                                  the following:.                                                                                                       
                                 UP=Unsatisfactory                                                                                                      
                                  participation as                                                                                                      
                                  defined in DOD                                                                                                        
                                  Directive 1215.13                                                                                                     
                                  (reference (r)).                                                                                                      
                                 US=Misconduct (to                                                                                                      
                                  include misconduct                                                                                                    
                                  for purely military                                                                                                   
                                  offenses).                                                                                                            
101. Military Unit Designator    Enter ``UIC'' of          440-447       8 AN  Service Specific.  X             X             X             X           
 (UIC).                           Reserve unit where                                                                                                    
                                  Service member is                                                                                                     
                                  actually performing                                                                                                   
                                  duty (can be                                                                                                          
                                  different from ``Unit                                                                                                 
                                  member is assigned                                                                                                    
                                  to''--see record                                                                                                      
                                  field 46). IMAs shall                                                                                                 
                                  carry the UIC of the                                                                                                  
                                  unit they augment on                                                                                                  
                                  mobilization. (Marine                                                                                                 
                                  Corps to submit                                                                                                       
                                  Reporting Unit Code                                                                                                   
                                  (RUC) and Monitored                                                                                                   
                                  Command Code (MCC)),                                                                                                  
                                  Air Force to submit                                                                                                   
                                  PAS code, Army                                                                                                        
                                  Reserve to submit 6-                                                                                                  
                                  position UIC and                                                                                                      
                                  MUSARC code.) If not                                                                                                  
                                  applicable, set                                                                                                       
                                  I=WWWWWWWWW. If                                                                                                       
                                  unknown, set                                                                                                          
                                  I=ZZZZZZZZ.                                                                                                           
102. Circumstance of Death       When Loss code L7 is      448-449        2 A  Standard Pending.  X             X             X             X           
                                  reported, additional                                                                                                  
                                  information below is                                                                                                  
                                  required:.                                                                                                            
                                 DD=Death as a                                                                                                          
                                  proximate result of                                                                                                   
                                  participating on                                                                                                      
                                  active or reserve                                                                                                     
                                  inactive duty                                                                                                         
                                 DC=Death not as a                                                                                                      
                                  proximate result of                                                                                                   
                                  participating on                                                                                                      
                                  active or reserve                                                                                                     
                                  inactive duty                                                                                                         

[[Page 654]]

                                                                                                                                                        
                                 DA=Death under                                                                                                         
                                  adjudication                                                                                                          
                                 If not applicable, set                                                                                                 
                                  I=WW                                                                                                                  
103. Filler....................  Reserved for future           450        1 A                                                                           
                                  use. Report as ``not                                                                                                  
                                  applicable,'' set I=W.                                                                                                
                                 General Note for                                                                                                       
                                  Personnel Processing                                                                                                  
                                  this Report: Data                                                                                                     
                                  elements and coding                                                                                                   
                                  must be as indicated                                                                                                  
                                  in Sections two and                                                                                                   
                                  four above. In cases                                                                                                  
                                  where specific coding                                                                                                 
                                  instructions are not                                                                                                  
                                  provided, refer to                                                                                                    
                                  DoD 5000.12-M                                                                                                         
                                  (reference (i)). Non-                                                                                                 
                                  compliance with                                                                                                       
                                  either the coding                                                                                                     
                                  instructions herein                                                                                                   
                                  or those approved                                                                                                     
                                  standards published                                                                                                   
                                  in reference (i)                                                                                                      
                                  shall make the                                                                                                        
                                  organization that                                                                                                     
                                  fails to comply                                                                                                       
                                  responsible for                                                                                                       
                                  required concessions                                                                                                  
                                  in data base                                                                                                          
                                  communication. Cost                                                                                                   
                                  of data conversions                                                                                                   
                                  shall be borne by the                                                                                                 
                                  organization whose                                                                                                    
                                  category of data                                                                                                      
                                  element lacks                                                                                                         
                                  precedence.                                                                                                           
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 655]]

   Appendix D to Part 114--General Specifications for Submission Tapes

    A. Submit magnetic tape files separately for each Reserve component 
within 20 calendar days of each month's end (as of date of the file). 
Separate each file into ``officer'' and ``enlisted'' files.
    B. Order each file by Social Security Number (field number 3), in 
ascending order, beginning with ``001010001.'' Additionally, sort 
transaction records with like SSNs on the ascending transaction 
effective date.
    C. Multifile reels are permissible and preferred to reduce the 
volume of tape handling.
    D. All tapes shall be 9-track, 6250 or 1600 bytes per inch (BPI), 
extended binary coded decimal interchange code (EBCDIC), with standard 
IBM labels. Data set names (DSN) shall be seven positions without spaces 
or periods, as follows:
    1. First position; Reserve component. Enter:

G=ARNG
A=USAR
N=USNR
M=USMCR
K=ANG
F=USARF
P=USCGR

    2. Second position: military personnel class: Enter:

O=Officer
E=Enlisted

    3. Third through sixth position, as of date. Enter:

YYMM
    4. Seventh position; type of file. Enter:

M=Master File
T=Transaction File
    E. Block all files with 13,600 characters (32 data records of 425 
characters per block).
    F. Accompany all magnetic tape files by a computer-produced quality 
control edit. Make that edit after the files have been produced, but 
before submission to the OSD. The computer-produced edit may also serve 
as the letter of transmittal for the files. (See Appendices E and F for 
format.)
    G. Mail all magnetic tape files and quality control edits to the 
address shown in Sec. 114.6(g).

Appendix E to Part 114--Quality Control Edit--Master File DD-RA (M) 1147

    The format for each Master File (1147) Quality Control Edit Report 
is, as follows (data is illustrative):

Reel Number: 123456.
Data Set Name: PE8//6M.
First Data Record: PE8//6M.

                                                               Reserve Component Category                                                               
--------------------------------------------------------------------------------------------------------------------------------------------------------
              Training Retired Category                    S          T          U          R          P          I          Y          V        Total  
--------------------------------------------------------------------------------------------------------------------------------------------------------
A....................................................      5,000  .........  .........  .........  .........  .........  .........  .........      5,000
B....................................................  .........        100  .........  .........  .........  .........  .........  .........        100
C....................................................  .........  .........  .........  .........  .........  .........         15  .........         15
D....................................................  .........  .........  .........  .........  .........  .........         25  .........         25
E....................................................  .........  .........  .........        200  .........  .........  .........  .........        200
F....................................................  .........  .........        100  .........  .........  .........  .........  .........        100
G....................................................        100  .........  .........  .........  .........  .........  .........  .........        100
I....................................................  .........  .........  .........  .........  .........        500  .........  .........        500
J....................................................  .........  .........  .........  .........        175  .........  .........  .........        175
K....................................................  .........  .........  .........  .........        125  .........  .........  .........        125
L....................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
N....................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
P....................................................  .........  .........         50  .........  .........  .........  .........  .........         50
Q....................................................  .........  .........        100  .........  .........  .........  .........  .........        100
S....................................................  .........  .........         25  .........  .........  .........  .........  .........         25
T....................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
W....................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
X....................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
2....................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
                                                      --------------------------------------------------------------------------------------------------
                                                           5,100        100        275        200        300        500         40         25       6740
--------------------------------------------------------------------------------------------------------------------------------------------------------

Appendix F to Part 114--Quality Control Edit--Transaction File DD-RA(M) 
                                  1148

    The format for each Transaction File (1148) Quality Control Edit 
Report is, as follows (data is illustrative):

Reel Number: 123456.
Data Set Name: PE8//6T.
First Data Record: PE8//6T.

[[Page 656]]



                                                               Reserve Component Category                                                               
--------------------------------------------------------------------------------------------------------------------------------------------------------
                   Transaction Code                        S          T          U          R          P          I          Y          V        Total  
--------------------------------------------------------------------------------------------------------------------------------------------------------
G1...................................................  .........  .........  .........  .........        250  .........  .........  .........        250
G3...................................................        400  .........  .........  .........  .........  .........  .........  .........        400
G4...................................................        150  .........  .........  .........  .........  .........  .........  .........        150
G5...................................................         75  .........  .........  .........  .........  .........  .........  .........         75
G7...................................................  .........  .........  .........  .........  .........  .........  .........  .........          -
G8...................................................  .........  .........  .........  .........  .........  .........  .........  .........          -
G0...................................................         10          5  .........  .........  .........  .........  .........  .........         15
                                                      --------------------------------------------------------------------------------------------------
    Subtotal:........................................        635          5          0          0        250          0          0          0        890
                                                      ==================================================================================================
L1...................................................        150         15         10          5         10          1  .........  .........        191
L2...................................................         75         25         10         25          5  .........  .........  .........        140
L3...................................................         20         25  .........  .........  .........  .........  .........  .........         45
L7...................................................          5  .........  .........  .........  .........  .........  .........  .........          5
L8...................................................          5  .........  .........  .........  .........  .........  .........  .........          5
L0...................................................  .........  .........  .........  .........  .........  .........  .........  .........          -
                                                      --------------------------------------------------------------------------------------------------
    Subtotal:........................................        255         65         20         30         15          1          0          0        386
                                                      ==================================================================================================
M1...................................................         75         50         25         50  .........  .........  .........  .........        200
M2...................................................         50  .........          5  .........  .........  .........  .........  .........         55
                                                      --------------------------------------------------------------------------------------------------
    Subtotal:........................................        125         50         30         50          0          0          0          0        255
                                                      ==================================================================================================
TA...................................................          1  .........  .........  .........  .........  .........  .........  .........          1
TB...................................................  .........          1  .........  .........  .........  .........  .........  .........          1
TC...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TD...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TE...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TF...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TG...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TH...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TJ...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TK...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TL...................................................  .........  .........  .........          1  .........  .........  .........  .........          1
TM...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TN...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TP...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TQ...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TR...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TU...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TV...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TW...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TY...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
TZ...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
T1...................................................  .........  .........  .........  .........  .........  .........  .........          1          1
T2...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
T3...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
T4...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
N1...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
N2...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
N3...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
N4...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
N5...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
N6...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
N7...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
P0...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
P1...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
P2...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
P3...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
P4...................................................  .........  .........  .........  .........  .........  .........  .........  .........  .........
    Subtotal:........................................          1          1          0          1          0          0          0          1          4
                                                      --------------------------------------------------------------------------------------------------
      Total..........................................      1,016        121         50         81        265          1          0          1      1,535
--------------------------------------------------------------------------------------------------------------------------------------------------------

                    Appendix G to Part 114--Glossary

                                                                        
                                                                        
                                                                        
AD                           Active Duty                                
AF                           Air Force                                  
AFQT                         Armed Forces Qualification Test            
AFSC                         Air Force Specialty Code                   
AGR                          Active Guard/Reserve                       

[[Page 657]]

                                                                        
ANG                          Air National Guard                         
AOCS                         Aviation Officer Candidate School          
APO                          Army Post Office                           
AQD                          Additional Qualification Designator        
ARNG                         Army National Guard                        
ASD(FM&P)                    Assistant Secretary of Defense (Force      
                              Management & Personnel)                   
ASD(PA)                      Assistant Secretary of Defense (Public     
                              Affairs)                                  
ASD(RA)                      Assistant Secretary of Defense (Reserve    
                              Affairs)                                  
ASI                          Additional Skill Identifier                
ASVAB                        Armed Services Vocational Aptitude Battery 
AT                           Annual Training                            
BMOS                         Billet Military Occupational Specialty     
BPI                          Bytes Per Inch                             
CAS3                         Combined Arms and Services Staff School    
CMF                          Career Management Field                    
DEERS                        Defense Enrollment Eligibility Reporting   
                              System                                    
DEP                          Delayed Entry Program                      
DIEMS                        Date of Initial Entry Military Service     
DIERF                        Date of Initial Entry Reserve Forces       
DMDC                         Defense Manpower Data Center               
DOB                          Date of Birth                              
DoD                          Department of Defense                      
DoDI                         Department of Defense Instruction          
DSN                          Data Set Name                              
DUI                          Data Use Identifier                        
EAD                          Extended Active Duty                       
EBCDIC                       Extended Binary Coded Decimal Interchange  
                              Code                                      
Encl                         Enclosure                                  
FPO                          Fleet Post Office                          
FTTD                         Full-Time Training Duty                    
FYDP                         Five Year Defense Program                  
GED                          General Equivalency Diploma                
HQ                           Headquarters                               
IDT                          Inactive Duty Training                     
IADT                         Initial Active Duty for Training           
IMA                          Individual Mobilization Augmentee          
ING                          Inactive National Guard                    
IRR                          Individual Ready Reserve                   
MOS                          Military Occupational Specialty            
MSO                          Military Service Obligation                
NATO                         North Atlantic Treaty Organization         
NEC                          Navy Enlisted Classification Code          
MGIB                         Montgomery GI Bill                         
NOBC                         Navy Officer Billet Classification         
NPS                          Non-Prior Service                          
NROTC                        Naval Reserve Officer Training Corps       
OCS                          Officer Candidate School                   
OJCS                         Office of the Joint Chiefs of Staff        
OSD                          Office of the Secretary of Defense         
OSUT                         One Station Unit Training                  
OTS                          Officer Training School                    
PEBD                         Pay Entry Base Date                        
PEC                          Program Element Code                       
PLC                          Platoon Leaders Course                     
PS                           Prior Service                              
RCC                          Reserve Component Category                 
RCCD                         Reserve Component Category Designator      
RCCPDS                       Reserve Components Common Personnel Data   
                              System                                    
RCTRCD                       Reserve Component Training-Retirement      
                              Category Designator                       
ROTC                         Reserve Officer Training Corps             
RPA                          Reserve Program Administrators             
SADT                         Special Active Duty for Training           
SMP                          Simultaneous Membership Program            
SPD                          Separation Program Designator              
SSI                          Service Specialty Identifier               
SSN                          Social Security Number                     
STD                          Standard                                   
TARS                         Training and Administration of Reserves    
TEMAC                        Temporary Active Duty                      
TTAD                         Temporary Tours of Active Duty             
U.S.                         United States                              
U.S.C.                       United States Code                         
U.S.N.R.                     United States Naval Reserve                
UIC                          Unit Identification Code                   
USAFA                        United States Air Force Academy            
USAFR                        United States Air Force Reserve            
USCG                         United States Coast Guard                  
USCGA                        United States Guard Academy                
USMA                         United States Military Academy             
USMC                         United States Marine Corps                 
USMMA                        United States Merchant Marine Academy      
USN                          United States Navy                         
USNA                         United States Naval Academy                
YYMM                         Year Year Month Month                      
YYMMDD                       Year Year Month Month Day Day              
ZIP                          Zoning Improvement Plan                    

[[Page 658]]

                                                                        
                                                                        


     Appendix H to Part 114--Record Layout Reserve Components Common    
                     Personnel Data System (RCCPDS)                     
------------------------------------------------------------------------
                                                        Record          
             Record field and data item                position    Page 
------------------------------------------------------------------------
1. Reserve Component................................        1-2      2-1
2. Reserve Component Category.......................        3-4      2-1
  a. Reserve Component Category Designator..........          3      2-1
  b. Reserve Component Training/Retirement Category                     
   Designator.......................................          4      2-3
3. Social Security Number...........................       5-13      2-6
4. Social Security Number, Military Spouse of a                         
 Service Member.....................................      14-22      2-6
5. Verification Status of Social Security Number....         23      2-6
6. Service Member's Name............................      24-50      2-7
7. Date of Birth....................................      51-56      2-7
8. Sex..............................................         57      2-7
9. Race and/or Population Group.....................         58      2-7
10. Ethnic Group....................................         59      2-7
11. Marital Status..................................         60      2-8
12. Dependents, Number of...........................      61-62      2-8
13. Educational Designator..........................         63      2-8
14. Filler..........................................      64-66     2-11
15. Home Mailing Address............................     67-153     2-11
16. Mailing Address Status Indicator................        154     2-11
17. Date of Rank....................................    155-160     2-11
18. Pay Grade, Uniformed Services...................    161-163     2-11
19. Pay Entry Base Date (PEBD)......................    164-169     2-11
20. Date of Initial Entry into Military Service                         
 (DIEMS)............................................    170-175     2-12
21. Date of Initial Entry into Reserve Forces                           
 (DIERF)............................................    176-181     2-12
22. Date of Expiration of Statutory Military Service                    
 Obligation.........................................    182-187     2-12
23. Military Technician Identifier and/or Active                        
 Guard or Reserve Statute Identifier................        188     2-12
24. Military Aeronautical Rating....................        189     2-13
25. Military Flying Status Indicator................        190     2-13
26. Service Occupation Code (Primary)...............    191-198     2-13
27. Service Occupation Code (Duty)..................    199-206     2-14
28. Active Duty Start Date..........................    207-212     2-14
29. Active Duty Stop Date...........................    213-218     2-14
30. Security Clearance..............................        219     2-14
31. Security Investigation Type.....................        220     2-15
32. Date of Award of Current Security Clearance.....    221-226     2-15
33. Statutory Authorization for Military Service....        227     2-15
34. Multiple Reporting..............................        228     2-15
  a. Source of Initial Commission for a Commissioned                    
   Officer..........................................        228     2-15
  b. Source of Initial Appointment as a Warrant                         
   Officer..........................................        228     2-16
35. Multiple Reporting Date.........................    229-234     2-16
  a. Date of Initial Appointment for a Commissioned                     
   Officer..........................................    229-234     2-16
  b. Date of Initial Appointment for a Warrant                          
   Officer..........................................    229-234     2-16
  c. Date of Initial Appointment for a Commissioned                     
   Warrant Officer..................................    229-234     2-16
  d. Date of Expiration of Enlistment in the Ready                      
   Reserve..........................................    229-234     2-16
36. Basic Branch or Specialty (Officer Only)........    235-236     2-16
37. Year and Month of Officer Mandatory Removal Date    237-240     2-18
38. Command Status of Commissioned Officer..........        241     2-18
39. Professional Military Education Level...........        242     2-18
40. Armed Forces Qualification Test Percentile Score                    
 (Enlisted Only)....................................    243-244     2-19
41. Involuntary Call to Active Duty.................    245-246     2-19
42. Means of Initial Entry into Military Service for                    
 Enlisted Members...................................        247     2-20
43. Prior Service Status Indicator (Active).........        248     2-20
44. Prior Service Status Indicator (Selected                            
 Reserve)...........................................        249     2-20
45. Length of Current Selected Reserve Agreement and/                   
 or Service Commitment..............................        250     2-20
46. Military Unit Designator (Unit Identification                       
 Code)..............................................    251-258     2-21
47. States of the United States and Countries (Unit                     
 Location)..........................................    259-260     2-21
48. National Zoning Improvement Plan (Unit ZIP Code)    261-269     2-21
49. Filler..........................................    270-275     2-21
50. Defense Language Aptitude Battery Test Score....    276-278     2-21
51. First Language Identifier.......................    279-280     2-21
52. Speaking Proficiency Lever, First Language......    281-282     2-21
53. Listening Proficiency Level, First Language.....    283-284     2-22
54. Reading Proficiency Level, First Language.......    285-286     2-22
55. Filler..........................................    287-288     2-22
56. Language Proficiency Source, First Language.....        289     2-22
57. Year and Month of Last Proficiency Test of First                    
 Language...........................................    290-293     2-22
58. Second Language Identifier......................    294-295     2-22
59. Speaking Proficiency Level, Second Language.....    296-297     2-22
60. Listening Proficiency Level, Second Langauge....    298-299     2-23
61. Reading Proficiency Level, Second Language......    300-301     2-23
62. Filler..........................................    302-303     2-23
63. Language Proficiency Source, Second Language....        304     2-23
64. Year and Month of Last Proficiency Test of                          
 Second Language....................................    305-308     2-23
65. Third Language Identifier.......................    309-310     2-23
66. Year and Month, Reserve Component Incentive                         
 Program Eligibility Effective Date.................    311-314     2-24
67. Reserve Component Incentive Program Type........        315     2-24
68. Reserve Component Incentive Program Educational                     
 Type...............................................        316     2-25
69. Year and Month Reserve Component Incentive                          
 Program Eligibility Terminated.....................    317-322     2-25
70. Montgomery G.I. Bill (MGIB) Enrollment Status                       
 (Title 38, U.S.C., Chapter 30).....................        323     2-25
71. Montgomery G.I. Bill Monthly Authorized Increase                    
 Basic Allowance Amount (Kicker), (Title 38, U.S.C.,                    
 Chapter 30)........................................        324     2-26
72. Montgomery G.I. Bill Monthly Supplemental                           
 Allowance Amount (Title 38, U.S.C., Chapter 30)....        325     2-26
73. Date of Declaration of Montgomery G.I. Bill                         
 Enrollment (Title 38, U.S.C., Chapter 30)..........    326-331     2-26

[[Page 659]]

                                                                        
74. Filler..........................................    332-337     2-26
75. Key Employees...................................        338     2-26
76. Montgomery G.I. Bill Eligibility Status (Title                      
 10, U.S.C., Chapter 106)...........................        339     2-26
77. Montgomery G.I. Bill Eligibility Start Date                         
 (Title 10, U.S.C, Chapter 106).....................    340-345     2-28
78. Montgomery G.I. Bill Eligibility Stop Date                          
 (Title 10, U.S.C., Chapter 106)....................    346-351     2-28
79. Months of Reserve Component MGIB Obligated                          
 Service Remaining..................................    352-353     2-28
80. Date of Execution of a 6-year Service Obligation                    
 of a Selected Reserve Member (MGIB)................    354-359     2-28
81. Effective Date of Current Enlistment,                               
 Reenlistment, or Extension of Enlistment Agreement.    360-365     2-29
82. Montgomery G.I. Bill Benefit Recoupment Status                      
 (Title 10, U.S.C., Chapter 106)....................        366     2-29
83. Total Days Active Federal Military Service......    367-371     2-29
84. Number of Years Creditable for Reserve                              
 Retirement.........................................    372-373     2-29
85. Reserve Component Accumulated Total Creditable                      
 Retirement Points Earned Last Retirement Year......    374-376     2-29
86. Reserve Component Total Number of Accumulated                       
 Paid Points Earned this Year.......................    377-379     2-29
87. Reserve Component Total Number of Accumulated                       
 Creditable Points Earned During Career Toward                          
 Retirement.........................................    380-384     2-30
88. Notification of Eligibility for Military                            
 Retirement Pay Indicator...........................        385     2-29
89. Date of Transfer to the Retired Reserve.........    386-391     2-30
90. Date of Transfer to the Standby Reserve.........    392-397     2-30
91. ``Privacy Act'' Disputed Record Indicator.......        398     2-30
92. Transaction Codes...............................    399-400     2-30
93. Separation Codes................................    401-405     2-30
94. Transaction Effective Date......................    406-411     2-31
95. Reenlistment Eligibility Code...................    412-413     2-31
96. Program Objective Memorandum (POM) Defense Plan                     
 Program Structure (Program Element Code (PEC)).....    414-421     2-31
97. Service Occupation Code (Secondary).............    422-429     2-31
98. Career Management Field (CMF), Enlisted.........    430-431     2-31
99. Date of Expiration of Selected Reserve                              
 Commitment.........................................    432-437     2-31
100. Reason for Loss/Transfer from Selected Reserve.    438-439     2-31
101. Military Unit Designator (Unit Identification                      
 Code)..............................................    440-447     2-32
102. Circumstance of Death..........................    448-449     2-32
103. Filler.........................................        450     2-32
------------------------------------------------------------------------



PART 115--ASSIGNMENT TO AND TRANSFER BETWEEN RESERVE CATEGORIES, AND DISCHARGE FROM RESERVE STATUS--Table of Contents




Sec.
115.1  Purpose and applicability.
115.2  Original assignment to reserve status.
115.3  Transfer to the Standby Reserve.
115.4  Transfer from the Standby Reserve.
115.5  Discharge.

    Authority: Sec. 301, 80 Stat. 379; 5 U.S.C. 301, sec. 1(5)(A), 72 
Stat. 1438; 10 U.S.C. 271, E.O. 11190; 3 CFR, 1964-1965 Comp. p. 272, 
E.O. 11382; 3 CFR, 1967 Comp. p. 327.

    Source: 35 FR 2775, Feb. 10, 1970, unless otherwise noted.



Sec. 115.1  Purpose and applicability.

    This part establishes Department of Defense policy guidance to the 
Military Departments for assignment of military personnel to and 
transfer between reserve categories, and discharge from reserve status 
under the provisions of the Military Selective Service Act of 1967 (50 
App. U.S.C. 451 et seq.) and title 10 U.S.C.



Sec. 115.2  Original assignment to reserve status.

    (a) Ready Reserve. Original membership in the Ready Reserve may be 
attained by:
    (1) Transfer thereto under sections 269(a) and 651 of title 10 
U.S.C. upon release from active duty:
    (2) Appointment as a Reserve Officer and assignment to the Ready 
Reserve under section 6(d), The Military Selective Service Act of 1967 
(50 App. U.S.C. 451 et seq.) and section 269(a) of title 10 U.S.C.;
    (3) Entry (appointment or enlistment) into the Army National Guard 
of the United States or Air National Guard of the United States in 
accordance with section 269(b) of title 10 U.S.C. as affected by 
sections 510, 591, 3077, 3261, 3351, 8077, 8261, and 8351 of title 10 
U.S.C.;
    (4) Direct entry under section 511 of title 10 U.S.C.;
    (5) Direct voluntary entry (appointment or enlistment) of an 
individual into the Ready Reserve, other than as provided above.
    (b) Standby Reserve. Direct assignment to the Standby Reserve 
without

[[Page 660]]

prior membership in the Ready Reserve may be attained in accordance with 
sections 269(e)(1) and 269(f) of title 10 U.S.C. upon release from 5 or 
more years of active duty (other than for training) in the Armed Forces.
    (c) Retired Reserve. Direct assignment and transfer to the Retired 
Reserve may be accomplished under DOD Directive 1200.4, ``The Retired 
Reserve of the Reserve Forces,'' September 24, 1963. \1\
---------------------------------------------------------------------------

    \1\ Filed as part of original document. Copies available from the 
U.S. Naval Publications and Forms Center, 5801 Tabor Avenue, 
Philadelphia, PA 19120, Attention: Code 300.
---------------------------------------------------------------------------



Sec. 115.3  Transfer to the Standby Reserve.

    (a) Provided they are not on active duty, the following personnel 
who have not fulfilled their total military service statutory obligation 
shall, upon their request, be assigned to or transferred to the Standby 
Reserve:
    (1) Those who have served 5 or more years on active duty (other than 
for training).
    (2) Those who have served on active duty (other than for training) 
and participated satisfactorily in accredited training programs of the 
Ready Reserve for a combined total of at least 5 years, or such shorter 
period as the Secretary of a Military Department concerned, with the 
approval of the Secretary of Defense, may prescribe.
    (b) Individuals qualifying for assignment or transfer to the Standby 
Reserve under paragraph (a) of this section, shall, if otherwise 
qualified therefor and a suitable vacancy exists, be afforded the 
opportunity to execute a written agreement to be assigned to or remain 
in the Ready Reserve. All such voluntary agreements will provide that:
    (1) The reservist may be transferred to the Standby Reserve by the 
appropriate Secretary for cogent reasons;
    (2) The reservist waives his right to transfer to the Standby 
Reserve under the conditions stated in paragraph (a) of this section, 
while serving under such agreement.
    (3) The period of the agreement shall be as prescribed by part 125 
of this subchapter.
    (c) Transfer to the Standby Reserve under the screening process in 
conformance with section 271 of title 10, U.S.C. will be accomplished 
under part 125 of this subchapter.
    (d) Transfer to the Standby Reserve of members of the Army National 
Guard of the United States or the Air National Guard of the United 
States will be subject to section 269(g) of title 10 U.S.C.
    (e) Upon transfer of a member of the Ready Reserve to the Standby 
Reserve, notification thereof to the Selective Service System will be 
made by the Military Department concerned in accordance with part 136 of 
this subchapter.
    (f) Assignment to the Inactive Status List of the Standby Reserve 
and retention thereon is governed by part 136 of this subchapter.



Sec. 115.4  Transfer from the Standby Reserve.

    (a) In accordance with section 272 of title 10 U.S.C. any member of 
the Standby Reserve who has not completed his statutory obligated period 
of military service in the Ready Reserve may be transferred to the Ready 
Reserve whenever the reasons for his transfer to the Standby Reserve no 
longer exist, provided he is otherwise qualified and a requirement 
exists.
    (b) Subject to such regulations as the appropriate Secretary may 
prescribe, a member of either the Standby Reserve or the Retired Reserve 
may, upon his own request, be transferred to the Ready Reserve if 
qualified and a requirement exists for him. However, a member of the 
Retired Reserve who is entitled to retired pay may not be transferred to 
the Ready Reserve unless the Secretary concerned personally makes a 
special finding that the member's services in the Ready Reserve are 
indispensable. Such voluntary transfer will be accomplished under 
section 269(d) of title 10, U.S.C. Those who have fulfilled their Ready 
Reserve statutory obligation will be required to execute a written 
agreement to serve in the Ready Reserve under conditions set forth in 
this paragraph (b).
    (c) In any case, where an individual is transferred from the Standby 
Reserve to the Ready Reserve or the Retired

[[Page 661]]

Reserve, notification thereof to the Selective Service System will be 
made by the Military Department concerned in accordance with part 136 of 
this subchapter.



Sec. 115.5  Discharge.

    (a) Enlisted members of the Ready Reserve or the Standby Reserve not 
on active duty who have completed their statutory obligation or who are 
not otherwise subject to a military obligation will be discharged upon 
the completion of their obligation or upon the expiration of their 
enlistment, as the case may be, unless they voluntarily (1) re-enlist to 
serve in the Ready Reserve or Standby Reserve, or (2), where applicable, 
extend their enlistment to remain in the Ready Reserve or (3) request 
transfer to the Inactive Status List of the Standby Reserve under the 
provisions of part 136 of this subchapter. Only those personnel listed 
in part 136 of this subchapter may re-enlist in the Standby Reserve.
    (b) Any person who while a member of a reserve component becomes a 
regular or duly ordained minister of religion shall be discharged from 
such reserve component upon request under section 1162(b) of title 10, 
U.S.C. The definition of regular or duly ordained minister of religion 
provided in section 16(g) of The Military Selective Service Act of 1967 
(50 App. U.S.C., 451 et seq.) shall be used in connection with this 
regulation.
    (c) Those commissioned officers of the reserve who have accepted 
indefinite appointment will not be subject to mandatory discharge upon 
completion of the statutory obligation.
    (d) Discharge from one's statutory obligation for hardship or other 
causes will be governed by pertinent provisions of parts 50 and 125 of 
this subchapter.
    (e) Discharge from the reserve components is governed by sections 
1003, 1162, and 1163 of title 10, U.S.C., subject to sections 680-681 
and 1006 of the same reference.
    (f) Upon the discharge of members of the Standby Reserve, due 
notification thereof will be made to the Selective Service System by the 
Military Department concerned.



PART 132--INITIAL ACTIVE DUTY FOR TRAINING IN RESERVE COMPONENTS--Table of Contents




Sec.
132.1  Reissuance and purpose.
132.2  Applicability and scope.
132.3  Policy.
132.4  Implementation.

    Authority: 10 U.S.C. 511, 32 U.S.C. 302, 50 App. U.S.C. 
456(c)(2)(A).

    Source: 35 FR 1290, Jan. 31, 1970, unless otherwise noted.



Sec. 132.1  Reissuance and purpose.

    This part updates uniform policies governing active duty and active-
duty-for-training programs established to provide basic training for 
persons enlisting directly into the Reserve Components (see 
Sec. 132.3(a) and (d)(1)).



Sec. 132.2  Applicability and scope.

    (a) The provisions of this part apply to the Military Departments 
conducting reserve enlistment programs under the provisions of title 10, 
U.S.C. section 511, and title 32, U.S.C. for personnel without prior 
military service.
    (b) Initial active duty or active-duty-for-training programs may 
include, in addition to recruit or basic individual training, basic unit 
training and various types of specialist training.



Sec. 132.3  Policy.

    (a) General. The reserve enlistment programs were established to 
provide the Reserve Forces with trained personnel. Enlistments of non-
prior service personnel shall be accepted under title 10, U.S.C. section 
511, and title 32, U.S.C. only to the extent that initial active-duty-
for-training spaces are expected to be available within 180 days from 
dates of enlistment. The Military Departments will program and budget 
for Reserve training base requirements as necessary to preclude delaying 
the commencement of initial basic training of Reserve enlistees beyond 
180 days in accordance with section 511(d) of title 10, United States 
Code.
    (b) Periods of enlistment. (1) Persons without prior military 
service who are under 26 years of age who enlist under section 511 (a) 
or (d) of title 10, U.S.C., or section 302 of title 32, U.S.C., and all

[[Page 662]]

persons regardless of age who enlist under section 511(b) of title 10, 
U.S.C. will be enlisted for a period of 6 years.
    (2) Persons without prior military service who are 26 years or over 
who enlist under section 511(a) of title 32, U.S.C. will be enlisted for 
such period as is prescribed by the Secretary of the Military Department 
concerned.
    (c) Periods of training. (1) Persons without prior military service 
who enlist in the Reserve Forces under section 511 (a) or (d) of title 
10, U.S.C., or section 302 of title 32, U.S.C. will perform an initial 
tour of active-duty-for-training of not less than four (4) consecutive 
months' duration regardless of age at time of enlistment (title 10, 
U.S.C., section 671).
    (i) The initial period of active-duty-for-training will be 
determined within each Military Service on the basis of the amount of 
training considered necessary to qualify the individual for the military 
specialty for which he enlisted.
    (ii) Unless otherwise provided by law, personnel shall participate 
in reserve training in the Ready Reserve for the total period of 
enlistment except for the period of delay in reporting for active-duty-
for-training permitted by paragraph (d) of this section.
    (iii) Deferment from induction of draft-liable enlistees based on 
satisfactory service in the Reserves is governed by the Military 
Selective Service Act of 1967, as supplemented by Selective Service 
Regulations.
    (2) Persons without prior military service who enlist in the Reserve 
Forces under section 511(b) of title 10, U.S.C. will perform such 
active-duty-for-training and inactive duty training as required to 
qualify them as combat ready by not later than 6 months following date 
of enlistment.
    (d) Delay in reporting. (1) Persons entering the Reserve Components 
under section 511 (a) or (d) of title 10, U.S.C., or section 302 of 
title 32, U.S.C. shall enter initial active-duty-for-training as 
prescribed in paragraph (c) of this section, with minimum practicable 
delay after enlistment. Any delay authorized shall not exceed 180 days 
except as follows:
    (i) Persons enlisting for positions requiring security clearance for 
access to or work with classified military information or equipment may 
be delayed to the extent necessary to accomplish the required 
clearances.
    (ii) Persons with special qualifications enlisted to fill positions 
requiring highly specialized skills for which appropriate formal 
training courses are offered only infrequently may be delayed to the 
extent necessary to insure that the enlistee receives the training 
commensurate with the requirements of the position for which enlisted.
    (iii) Persons who have enlisted and who subsequently incur a 
personal hardship as a result of an unexpected delay in being ordered to 
initial active-duty-for-training may be delayed beyond 180 days under 
regulations prescribed by the Secretary of the Military Department 
concerned.
    (iv) Delays for such personnel shall, in no case, exceed a period of 
1 year from date of enlistment. Such delays shall not be employed for 
the purpose of stockpiling personnel.
    (2) Participation in Reserve training by individuals during periods 
of delay will be in accordance with part 102 of this subchapter.
    (3) Persons enlisting in the Reserve Components under section 511(b) 
of title 10, U.S.C., shall be ordered to active duty or advanced school 
training no later than 1 year following enlistment.
    (e) Officer training programs. Persons enlisting directly in the 
Reserve Components to participate in officer training programs requiring 
enlisted status for eligibility therefor may be exempt from the training 
and delay requirements set forth in paragraphs (c) and (d) of this 
section.
    (f) Reserve Officers' Training Corps. Personnel enrolled in the 
financial assistance program of the senior division, ROTC, or the 
advanced course of the nonscholarship program of the senior division 
will not participate in a paid training status (part 102 of this 
subchapter), in any training program of a Reserve Component.
    (g) Army and Air National Guard. In order to assure uniformity of 
training and discipline, members of the Army National Guard of the 
United States and the Air National Guard of the United States ordered to 
active-duty-

[[Page 663]]

for-training for the purpose of basic training will be ordered to that 
duty as Reserves of the Army or of the Air Force, as appropriate.
    (h) Advanced individual training. In order to assure a high level of 
quality among Reserve enlisted personnel and to achieve and maintain a 
high level of operational readiness of units of the Selected Reserve, 
National Guard and Reserve enlistees who require advanced individual 
training in specific military skills to qualify them for filling unit 
assignments in the Selected Reserve will be provided such training 
following completion of their basic training.
    (1) The Military Departments will program and budget for advanced 
individual training capabilities sufficiently to fulfill the individual 
training requirements of National Guard and Reserve units on a priority 
consistent with mobilization missions assigned.
    (2) Personnel enlisted under subsections (a) or (d) of 10 U.S.C. 
511, who have received such advanced training will be required to agree 
to actively participate in the Selected Reserve for the duration of 
their statutory obligation.
[35 FR 1290, Jan. 31, 1970, as amended at 35 FR 12654, Aug. 8, 1970]



Sec. 132.4  Implementation.

    In the interest of maintaining reasonable uniformity and equity 
among the reserve enlistment programs of the Military Departments, 
proposed changes to existing reserve enlistment programs established in 
conformance with this part and programs proposed for establishment under 
its provisions will be submitted to the Assistant Secretary of Defense 
(Manpower and Reserve Affairs) for approval.



PART 142--COPYRIGHTED SOUND AND VIDEO RECORDINGS--Table of Contents




Sec.
142.1  Purpose.
142.2  Applicability.
142.3  Policy.
142.4  Procedures.
142.5  Responsibilities.

    Authority: 10 U.S.C. 133.

    Source: 49 FR 49452, Dec. 20, 1984, unless otherwise noted.



Sec. 142.1  Purpose.

    This part provides policy, prescribes procedures, and assigned 
responsibilities regarding the use of copyrighted sound and video 
recordings within the Department of Defense.



Sec. 142.2  Applicability.

    (a) The provisions of this part apply to the Office of the Secretary 
of Defense, the Military Departments, the Organization of the Joint 
Chiefs of Staff, the Unified and Specified commands, and the Defense 
Agencies (hereafter referred to collectively as ``DoD Components'').
    (b) This part does not regulate the procurement or use of 
copyrighted works for authorized official purposes.



Sec. 142.3  Policy.

    (a) It is DoD policy: (1) To recognize the rights to copyright 
owners by establishing specific guidelines for the use of copyrighted 
works by individuals within the DoD community, consistent with the 
Department's unique mission and worldwide commitments, and (2) Not to 
condone, facilitate, or permit unlicensed public performance or unlawful 
reproduction for private or personal use of copyrighted sound or video 
recordings, using government appropriated or nonappropriated-fund-owned 
or leased equipment or facilities.
    (b) Although the policy expressed in this Directive takes into 
account the copyright law of the United States, the application of that 
law to specific situations is a matter for interpretation by the U.S. 
Copyright Office and the Department of Justice.



Sec. 142.4  Procedures.

    (a) Permission or licenses from copyright owners shall be obtained 
for public performance of copyrighted sound and video recordings.
    (b) Component procedures established pursuant to Sec. 142.5, below 
provide guidance for determining whether a performance is ``public.'' 
These general principles will be observed:
    (1) A performance in a residential facility or a physical extension 
thereof is not considered a public performance.

[[Page 664]]

    (2) A performance in an isolated area or deployed unit is not 
considered a public performance.
    (3) Any performance at which admission is charged normally would be 
considered a public performance.
    (c) Government audio and video duplicating equipment and 
appropriated funded playback equipment may not be used for reproduction 
of copyrighted sound or video recordings.



Sec. 142.5  Responsibilities.

    Heads of DoD Components shall establish procedures to comply with 
this Directive and shall provide necessary local guidance and legal 
interpretation.



PART 143--DoD POLICY ON ORGANIZATIONS THAT SEEK TO REPRESENT OR ORGANIZE MEMBERS OF THE ARMED FORCES IN NEGOTIATION OR COLLECTIVE BARGAINING--Table of Contents




Sec.
143.1  Reissuance and purpose.
143.2  Applicability and scope.
143.3  Policy.
143.4  Prohibited activity.
143.5  Activity not covered by this part.
143.6  Responsibility.
143.7  Definitions.
143.8  Guidelines.

    Authority: 10 U.S.C. 801-940; and 10 U.S.C. 976.

    Source: 45 FR 84055, Dec. 22, 1980, unless otherwise noted.



Sec. 143.1  Reissuance and purpose.

    This rule is reissued to reflect revisions in policies and 
procedures for organizations whose objective is to organize or represent 
members of the Armed Forces of the United States for purposes of 
negotiating or bargaining about terms or conditions of military service. 
The policies and procedures set forth herein are designed to promote the 
readiness of the armed forces to defend the United States. The part does 
not modify or diminish the existing authority of commanders to control 
access to, or maintain good order and discipline on, military 
installations; nor does it modify or diminish the obligations of 
commanders and supervisors under 5 U.S.C. 7101-7135 with respect to 
organizations representing DoD civilian employees.



Sec. 143.2  Applicability and scope.

    (a) The provisions of this part apply to:
    (1) Department of Defense Components, which include the Office of 
the Secretary of Defense, the Military Departments, the Organization of 
the Joint Chiefs of Staff, the Unified and Specified Commands, and the 
Defense Agencies;
    (2) All military and civilian personnel of the Department of 
Defense; and
    (3) Individuals and groups entering, using, or seeking to enter or 
use military installations.
    (b) This part does not limit the application of the Uniform Code of 
Military Justice title 10 U.S.C., sections 801-940 or 10 U.S.C. 976 
including the prohibitions and criminal penalties set forth therein with 
respect to matters that are the subject of this part or that are beyond 
its scope.



Sec. 143.3  Policy.

    It is the policy of the United States under Public Law 95-610 that:

    1. Members of the armed forces of the United States must be prepared 
to fight and, if necessary, to die to protect the welfare, security, and 
liberty of the United States and of their fellow citizens.
    2. Discipline and prompt obedience to lawful orders of superior 
officers are essential and time-honored elements of the American 
military tradition and have been reinforced from the earliest articles 
of war by laws and regulations prohibiting conduct detrimental to the 
military chain of command and lawful military authority.
    3. The processes of conventional collective bargaining and labor-
management negotiation cannot and should not be applied to the 
relationships between members of the armed forces and their military and 
civilian superiors.
    4. Strikes, slowdowns, picketing, and other traditional forms of job 
action have no place in the armed forces.
    5. Unionization of the armed forces would be incompatible with the 
military chain of command, would undermine the role, authority, and 
position of the commander, and would impair the morale and readiness of 
the armed forces.
    6. The circumstances which could constitute a threat to the ability 
of the armed forces to perform their mission are not comparable to the 
circumstances which could

[[Page 665]]

constitute a threat to the ability of Federal civilian agencies to 
perform their functions and should be viewed in light of the need for 
effective performance of duty by each member of the armed forces.



Sec. 143.4  Prohibited activity.

    (a) Membership and enrollment. (1) A member of the armed forces, 
knowing of the activities or objectives of a particular military labor 
organization, may not:
    (i) Join or maintain membership in such organization; or
    (ii) Attempt to enroll any other member of the armed forces as a 
member of such organization.
    (2) No person on a military installation, and no member of the armed 
forces, may enroll in a military labor organization any member of the 
armed forces or solicit or accept dues or fees for such an organization 
from any member of the armed forces.
    (b) Negotiation or bargaining. (1) No person on a military 
installation, and no member of the armed forces, may negotiate or 
bargain, or attempt through any coercive act to negotiate or bargain, 
with any civilian officer or employee, or any member of the armed 
forces, on behalf of members of the armed forces, concerning the terms 
or conditions of service of such members.
    (2) No member of the armed forces, and no civilian officer or 
employee, may negotiate or bargain on behalf of the United States 
concerning the terms or conditions of military service of members of the 
armed forces with any person who represents or purports to represent 
members of the armed forces.
    (c) Strikes and other concerted activity. (1) No person on a 
military installation, and no member of the armed forces, may organize 
or attempt to organize, or participate in, any strike, picketing, march, 
demonstration, or other similar form of concerted action involving 
members of the armed forces that is directed against the Government of 
the United States and that is intended to induce any civilian officer or 
employee, or any member of the armed forces, to:
    (i) Negotiate or bargain with any person concerning the terms or 
conditions of service of any member of the armed forces,
    (ii) Recognize any military labor organization as a representative 
of individual members of the armed forces in connection with any 
complaint or grievance of any such member arising out of the terms or 
conditions of service of such member in the armed forces, or
    (iii) Make any change with respect to the terms or conditions of 
service in the armed forces of individual members of the armed forces.
    (2) No person may use any military installation for any meeting, 
march, picketing, demonstration, or other similar activity for the 
purpose of engaging in any activity prohibited by this Directive.
    (3) No member of the armed forces, and no civilian officer or 
employee, may permit or authorize the use of any military installation 
for any meeting, march, picketing demonstration, or other similar 
activity which is for the purpose of engaging in any activity prohibited 
by this Directive.
    (d) Representation. A military labor organization may not represent, 
or attempt to represent, any member of the armed forces before any 
civilian officer or employee, or any member of the armed forces, in 
connection with any grievance or complaint of any such member arising 
out of the terms or conditions of service of such member in the armed 
forces.



Sec. 143.5  Activity not covered by this part.

    (a) This part does not limit the right of any member of the armed 
forces to:
    (1) Join or maintain membership in any lawful organization or 
association not constituting a ``military labor organization'' as 
defined in Sec. 143.7.
    (2) Present complaints or grievances concerning the terms or 
conditions of the service of such member in the armed forces in 
accordance with established military procedures;
    (3) Seek or receive information or counseling from any source;
    (4) Be represented by counsel in any legal or quasi-legal 
proceeding, in accordance with applicable laws and regulations;
    (5) Petition the Congress for redress of grievances; or

[[Page 666]]

    (6) Take such other administrative action to seek such 
administrative or judicial relief, as is authorized by applicable law 
and regulations.
    (b) This part does not prevent commanders or supervisors from giving 
consideration to the views of any member of the armed forces presented 
individually or as a result of participation on command-sponsored or 
authorized advisory council, committees, or organizations.
    (c) This part does not prevent any civilian employed at a military 
installation from joining or being a member of an organization that 
engages in representational activities with respect to terms or 
conditions of civilian employment.



Sec. 143.6  Responsibility.

    (a) Heads of DoD Components shall:
    (1) Ensure compliance with this part and with the guidelines 
contained in enclosure 1.
    (2) Establish procedures to ensure that any action initiated under 
this part is reported immediately to the Head of the DoD Component 
concerned.
    (3) Report any action initiated under this part immediately to the 
Secretary of Defense.
    (b) The Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) shall serve as the administrative point of contact in the 
Office of the Secretary of Defense for all matters relating to this 
part.



Sec. 143.7  Definitions.

    (a) Member of the Armed Forces. A member of the armed forces who is 
serving on active duty, or a member of a Reserve component while 
performing inactive duty training.
    (b) Military labor organization. Any organization that engages in or 
attempts to engage in:
    (1) Negotiating or bargaining with any civilian officer or employee, 
or with any member of the armed forces, on behalf of members of the 
armed forces, concerning the terms or conditions of military service of 
such members in the armed forces;
    (2) Representing individual members of the armed forces before any 
civilian officer or employee, or any member of the armed forces, in 
connection with any grievance or complaint of any such member arising 
out of the terms or conditions of military service of such member in the 
armed forces; or
    (3) Striking, picketing, marching, demonstrating, or any other 
similar form of concerted action which is directed against the 
Government of the United States and which is intended to induce any 
civilian officer or employee, or any member of the armed forces, to:
    (i) Negotiate or bargain with any person concerning the terms or 
conditions of military service of any member of the armed forces,
    (ii) Recognize any organization as a representative of individual 
members of the armed forces in connection with complaints and grievances 
of such members arising out of the terms or conditions of military 
service of such members in the armed forces, or
    (iii) Make any change with respect to the terms or conditions of 
military service of individual members of the armed forces.
    (c) Civilian officer or employee. An employee, as defined in 5 
U.S.C. 2105.
    (d) Military installations. Includes installations, reservations, 
facilities, vessels, aircraft, and other property controlled by the 
Department of Defense.
    (e) Negotiation or bargaining. A process whereby a commander or 
supervisor acting on behalf of the United States engages in discussions 
with a member or members of the armed forces (purporting to represent 
other such members), or with an individual, group, organization, or 
association purporting to represent such members, for the purpose of 
resolving bilaterally terms or conditions of military service.
    (f) Terms or conditions of military service. Terms or conditions of 
military compensation or duty including but not limited to wages, rates 
of pay, duty hours, assignments, grievances, or disputes.



Sec. 143.8  Guidelines.

    The guidelines for making certain factual determinations are as 
follows:
    (a) In determining whether an organization is a military labor 
organization, whether a person is a member of a military labor 
organization, or whether such person or organization is

[[Page 667]]

in violation of any provision of this Directive, the history and 
operation of the organization (including its constitution and bylaws, if 
any) or person in question may be evaluated, along with evidence on the 
conduct constituting a prohibited act.
    (b) In determining whether the commission of a prohibited act by a 
person can be imputed to the organization, examples of factors that may 
be considered include: the frequency of such act; the position in the 
organization of persons committing the act; whether the commission of 
such act was known by the leadership of the organization; whether the 
commission of the act was condemned or disavowed by the leadership of 
the organization.
    (c) Any information about persons and organizations not affiliated 
with the Department of Defense needed to make the determinations 
required by this Directive shall be gathered in strict compliance with 
the provisions of DoD Directive 5200.27 \1\, ``Acquisition of 
Information Concerning Persons and Organizations not Affiliated With the 
Department of Defense,'' January 7, 1980, and shall not be acquired by 
counterintelligence or security investigative personnel. The 
Organization itself shall be considered a primary source of information.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, PA 
19120. Attention: Code 301.
---------------------------------------------------------------------------



PART 144--SERVICE BY MEMBERS OF THE ARMED FORCES ON STATE AND LOCAL JURIES--Table of Contents




Sec.
144.1  Purpose.
144.2  Applicability.
144.3  Definitions.
144.4  Policy.
144.5  Responsibilities.
144.6  Procedures.
144.7  Effective date and implementation.

    Authority: 10 U.S.C. 982.

    Source: 53 FR 23759, June 24, 1988, unless otherwise noted.



Sec. 144.1  Purpose.

    This part implements 10 U.S.C. 982 to establish uniform Department 
of Defense policies for jury service by members of the Armed Forces on 
active duty.



Sec. 144.2  Applicability.

    The provisions of this part apply to active-duty members of the 
Armed Forces.



Sec. 144.3  Definitions.

    (a) Armed Forces. The Army, Navy, Air Force, Marine Corps, and the 
Coast Guard when it is operating as a Service in the Navy.
    (b) State. Includes the fifty United States, U.S. Territories, 
District of Columbia, and the Commonwealth of Puerto Rico.
    (c) Active duty. Full-time duty in the active military service of 
the United States. Includes full-time training duty, annual training 
duty, active duty for training, and attendance, while in the active 
military service, at a school designated as a Service school by law or 
by the Secretary of the Military Department concerned.
    (d) Operating forces. Those forces whose primary mission is to 
participate in combat and the integral supporting elements thereof.



Sec. 144.4  Policy.

    It is DoD policy to permit members of the Armed Forces maximally to 
fulfill their civic responsibilities consistent with their military 
duties. For service members stationed in the United States, servicing on 
a State or local jury is one such civic obligation. Service members are 
exempt from jury duty, when it unreasonably would interfere with 
performance of their military duties or adversely affect the readiness 
of a unit, command, or activity.



Sec. 144.5  Responsibilities.

    The Secretaries of the Military Departments, or designees, in 
accordance with regulations prescribed by the Secretary concerned, shall 
determine whether Service members shall be exempt from jury duty. This 
authority may be delegated no lower than to commanders authorized to 
convene special courts-martial.

[[Page 668]]



Sec. 144.6  Procedures.

    The Secretaries of the Military Departments shall publish procedures 
that provide the following:
    (a) When a Service member on active duty is summoned to perform 
State or local jury duty, the Secretary concerned, or the official to 
whom such authority has been delegated, shall decide if such jury duty 
would:
    (1) Interfere unreasonably with the performance of the service 
member's military duties.
    (2) Affect adversely the readiness of the unit, command, or activity 
to which the member is assigned.
    (b) If such jury service would interfere with the service member's 
military duties or adversely affect readiness, the service member shall 
be exempted from jury duty. The decision of the Secretary concerned, or 
the official to whom such authority has been delegated, shall be 
conclusive.
    (c) All general and flag officers, commanders and commanding 
officers, officers-in-charge, and all personnel assigned to the 
operating forces, in a training status, or stationed outside the United 
States are exempt from serving on a State or local jury. Such jury 
service necessarily would interfere with the performance of military 
duties by these members and adversely affect the readiness of the unit, 
command, or activity to which they are assigned.
    (d) Service members who serve on State or local juries shall not be 
charged leave or lose any pay or entitlements during the period of 
service. All fees accrued to the member for jury service are payable to 
the United States Treasury. Members are entitled to any reimbursement 
from the State or local jury authority for expenses incurred in the 
performance of jury duty, such as for transportation costs or parking 
fees.
    (e) Written notice of each exemption determination shall be provided 
to the responsible State or local official who summoned an exempt member 
for jury duty.



Sec. 144.7  Effective date and implementation.

    This part is effective June 13, 1988.



PART 145--COOPERATION WITH THE OFFICE OF SPECIAL COUNSEL OF THE MERIT SYSTEMS PROTECTION BOARD--Table of Contents




Sec.
145.1  Purpose.
145.2  Applicability and scope.
145.3  Definitions.
145.4  Policy.
145.5  Responsibilities.
145.6  Procedures.

Appendix to Part 145--Legal Representation

    Authority: 5 U.S.C. 301; 10 U.S.C. 133.

    Source: 51 FR 17178, May 9, 1986, unless otherwise noted.



Sec. 145.1  Purpose.

    This part establishes policy, assigns responsibilities, and 
prescribes procedures for cooperation with the Office of Special Counsel 
(OSC) of the Merit Systems Protection Board (MSPB) in fulfilling the 
responsibilities of the Special Counsel under Pub. L. 95-454 and 5 CFR 
1201 and 1250 to conduct investigations of alleged prohibited personnel 
practices and to ensure the investigation of other allegations of 
improper or illegal conduct referred to the Department of Defense by the 
OSC. This part provides internal guidance to DoD officials, and does not 
establish an independent basis for any person or organization to assert 
a right, benefit, or privilege.



Sec. 145.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense 
(OSD), the Military Departments, the Office of the Joint Chiefs of Staff 
(OJCS), the Inspector General, Department of Defense (IG, DoD) and the 
Defense Agencies (hereafter referred to collectively ``as DoD 
Components'').
    (b) The provisions of this part that relate to prohibited personnel 
practices do not apply to the Defense Intelligence Agency (DIA) or the 
National Security Agency (NSA), as prescribed by 5 U.S.C. 
2302(a)(2)(C)(ii.).
    (c) This part does not restrict the IG, DoD, in coordinating 
investigative efforts on individual cases with the OSC where concurrent 
jurisdiction exists.

[[Page 669]]



Sec. 145.3  Definitions.

    Improper or illegal conduct. (a) A violation of any law, rule, or 
regulation in connection with Government misconduct; or
    (b) Mismanagement, a gross waste of funds, an abuse of authority, or 
a substantial and specific danger to public health or safety.
    Office of the Secretary of Defense (OSD). (a) The immediate offices 
of the Secretary, the Deputy Secretary, the Assistant Secretaries, 
Assistants to the Secretary, and other officials serving the Secretary 
of Defense directly.
    (b) The field activities of the Secretary of Defense.
    (c) The Organization of the Joint Chiefs of Staff.
    (d) The Unified and Specified Commands.
    Personnel action. (a) An appointment.
    (b) A promotion.
    (c) An adverse action under 5 U.S.C. 7501 et seq. or other 
disciplinary or corrective action.
    (d) A detail, transfer, or reassignment.
    (e) A reinstatement.
    (f) A restoration.
    (g) A reemployment.
    (h) A performance evaluation under 5 U.S.C. 4301 et seq.
    (i) A decision concerning pay, benefits, or awards, or concerning 
education or training if the education or training may reasonably be 
expected to lead to an appointment, promotion, performance evaluation, 
or other personnel action.
    (j) Any other significant change in duties or responsibilities that 
is inconsistent with the employee's salary or grade level.
    Prohibited personnel practice. Action taken by an employee who has 
authority to take, direct others to take, recommend, or approve any 
personnel action:
    (a) That discriminates for or against any employee or applicant for 
employment on the basis of race, color, religion, sex, national origin, 
age, handicapping condition, marital status, or political affiliation, 
as prohibited by certain specified laws (see 5 U.S.C. 2302(b)(1).
    (b) To solicit or consider any recommendation or statement, oral or 
written, with respect to any individual who requests, or is under 
consideration for, any personnel action, unless the recommendation or 
statement is based on the personal knowledge or records of the person 
furnishing it, and consists of an evaluation of the work performance, 
ability, aptitude, or general qualifications of the individual, or an 
evaluation of the character, loyalty, or suitability of such individual.
    (c) To coerce the political activity of any person (including the 
providing of any political contribution or service), or take any action 
against any employee or applicant for employment as a reprisal for the 
refusal of any person to engage in such political activity.
    (d) To deceive or willfully obstruct any person with respect to such 
person's right to compete for employment.
    (e) To influence any person to withdraw from competition for any 
position for the purpose of improving or injuring the prospects of any 
other person for employment.
    (f) To grant any preference or advantage not authorized by law, 
rule, or regulation to any employee or applicant for employment 
(including defining the scope or manner of competition or the 
requirements for any position) for the purpose of improving or injuring 
the prospects of any particular person for employment.
    (g) To appoint, employ, promote, advance, or advocate for 
appointment, employment, promotion, or advancement, in or to a civilian 
position any individual who is a relative (as defined in 5 U.S.C. 3110) 
of the employee if the position is in the agency in which the employee 
is serving as a public official (as defined in 5 U.S.C. 3110) or over 
which the employee exercises jurisdiction or control as an official.
    (h) To take or fail to take a personnel action with respect to any 
employee or applicant for employment as a reprisal for being a 
whistleblower. (See whistleblower)
    (i) To take or fail to take a personnel action against an employee 
or applicant for employment as a reprisal for the exercise of any appeal 
right granted by law, rule, or regulation.
    (j) To discriminate for or against any employee or applicant for 
employment on the basis of conduct that does not

[[Page 670]]

adversely affect the performance of the employee or applicant or the 
performance of others.
    (k) To take or fail to take any other personnel action if the taking 
of, or failure to take, such action violates any law, rule, or 
regulation implementing, or directly concerning, the merit system 
principles contained in 5 U.S.C. 2301.
    Whistleblower. A present or former Federal employee or applicant for 
Federal employment who discloses information he or she reasonably 
believes evidences:
    (a) A violation of any law, rule, or regulation.
    (b) Mismanagement, a gross waste of funds, or an abuse of authority.
    (c) A substantial or specific danger to public health or safety.
    (d) Such disclosure qualifies if it is not specifically prohibited 
by statute and if such information is not specifically required by 
Executive Order to be kept secret in the interest of national defense or 
the conduct of foreign affairs.
    (e) Where the information disclosed affects only the personal 
situation of the complaintant, it is generally to be regarded as an 
allegation of a prohibited personnel practice or violation of other 
civil service law, rule, or regulation, and the complainant will not be 
considered a whistleblower.



Sec. 145.4  Policy.

    It is DoD policy that:
    (a) Civilian personnel actions taken by DoD management officials, 
civilian and military, shall conform to laws and regulations 
implementing established merit system principles and must be free of any 
prohibited personnel practices, as described in 5 U.S.C. 2302 and 
Sec. 145.3 of this part.
    (b) It is the responsibility of each DoD management official to take 
vigorous corrective action and, when appropriate, to initiate 
disciplinary measures when prohibited personnel practices occur.
    (c) DoD Components shall cooperate with the Office of Special 
Counsel by:
    (1) Promoting merit system principles in civilian employment 
programs within the Department of Defense.
    (2) Investigating and reporting on allegations of improper or 
illegal conduct forwarded to the Component by the OSC pursuant to 5 
U.S.C. 1206(b) (2) or (3).
    (3) Facilitating orderly investigation by the OSC of alleged 
prohibited personnel practices and other matters assigned for 
investigation to the OSC by law, such as the Freedom of Information Act 
and the Hatch Act.
    (d) DoD Components shall cooperate with the OSC by providing 
appropriate assistance and information to its representatives during 
their investigations and by furnishing to the OSC investigators copies 
of releasable documents requested under the authority of the Civil 
Service Reform Act of 1978, 5 CFR 1250, the Privacy Act, and Civil 
Service Rule V.
    (e) Close coordination between DoD and OSC personnel during an OSC 
investigation is encouraged to eliminate duplication of effort, and to 
avoid unnecessary delay in initiating, when appropriate, corrective or 
disciplinary action. This coordination shall be conducted in full 
recognition of the independent statutory basis for the OSC, as provided 
in Pub. L. 95-454 and of the responsibilities of the Department of 
Defense.
    (f) OSC investigative requests involving classified information 
shall be accorded special attention and prompt consideration under 
existing administrative procedures.
    (g) When OSC and a DoD Component or an employee assigned DoD counsel 
are engaged in litigation, release of information shall be accomplished 
pursuant to MSPB rules of discovery (5 CFR 1201, subpart B.).



Sec. 145.5  Responsibilities.

    (a) The Secretaries of the Military Departments and the Director, 
Defense Logistics Agency (DLA), shall prescribe implementing documents 
to ensure that:
    (1) The policies, standards, and procedures set forth in this part 
are administered in a manner that encourages consistency in responding 
to investigations of alleged prohibited personnel practices.
    (2) Alleged illegal or improper conduct referred to a Military 
Department

[[Page 671]]

or the DLA by the OSC or by OSD is carefully investigated.
    (3) There is full cooperation with the IG, DoD, and the General 
Counsel, Department of Defense (GC, DoD), including assignment of 
military and civilian attorneys to represent employees suspected or 
accused by the OSC of committing a prohibited personnel practice or an 
otherwise illegal or improper act.
    (b) The General Counsel, Department of Defense (GC, DoD) shall 
provide overall legal guidance, whether by the issuance of regulations 
or otherwise, on all issues concerning cooperation with the OSC. This 
authority extends to:
    (1) Ensuring that DoD legal counsel is assigned upon request to 
represent a DoD employee suspected or accused by the OSC of committing a 
prohibited personnel practice or an illegal or improper act when the act 
complained of was within the scope of the employee's official 
responsibilities and such representation is in the interest of the 
Department of Defense; or, in unusual situations, that outside legal 
counsel is engaged where the use of DoD counsel would be inappropriate, 
and the same conditions are satisfied.
    (2) Providing DoD legal counsel to seek intervention for the purpose 
of representing the interests of OSD or a Defense agency (other than the 
DLA) in an MSPB hearing resulting from charges of misconduct against an 
employee of OSD or a Defense agency, under the authority of the Civil 
Service Reform Act of 1978.
    (3) Seeking the assistance of the Department of Justice in 
responding to requests by employees for legal representation in 
obtaining judicial review of an order by the MSPB, under 5 U.S.C. 1207.
    (4) Modifying Sec. 145.3 and Appendix to this part and issuing 
supplementary instructions concerning all aspects of DoD cooperation 
with the OSC, including instructions on OSC investigations of allegedly 
arbitrary and capricious withholding of information under the Freedom of 
Information Act or violations of the Hatch Act.
    (5) Reviewing for adequacy and legal sufficiency with the IG, DoD, 
each report of an investigation that must be personally reviewed by the 
Secretary or Deputy Secretary of Defense on action taken or to be taken 
in response to an OSC finding of reasonable cause to believe there has 
been a violation of law, rule, or regulation, not including a prohibited 
personnel practice or allegation referred to the Attorney General of the 
United States for appropriate action.
    (c) The Inspector General, Department of Defense (IG, DoD) shall:
    (1) Investigate, or cause to be investigated, as appropriate, any 
complaint referred to the Department of Defense by OSC.
    (2) Coordinate, where feasible, investigative efforts by DoD 
Components and the OSC, with particular emphasis on those conducted or 
initiated by action of the OSC.
    (3) Submit the results of any investigation conducted under this 
part to the appropriate General Counsel.
    (d) The Deputy Assistant Secretary of Defense (Administration) 
(DASD(A)) shall serve as the Senior Management Official, as described in 
Sec. 145.6(b) concerning allegations by the OSC of prohibited personnel 
practices or other illegal or improper acts in the OSD.
    (e) The General Counsels of the Military Departments and the General 
Counsel of the Defense Logistics Agency shall have the same authority 
for their respective Components as given to the General Counsel, DoD, 
under paragraphs (b) (1) and (2) of this section.



Sec. 145.6  Procedures.

    (a) Allegations of improper or illegal conduct received from the OSC 
under 5 U.S.C. 1206(b)(2), (3), or (c)(3). (1) Allegations of improper 
or illegal conduct referred by the OSC to the Secretary of Defense or to 
a Defense agency (other than the DLA) shall be forwarded to the IG, DoD.
    (2) Allegations of improper or illegal conduct referred to a 
Military Department or to the DLA by the OSC shall be forwarded to the 
General Counsel of that Component.
    (3) Upon receipt of a referral under paragraph (a) (1) or (2) of 
this section IG, DoD, or the GC of the Component concerned, as 
appropriate, shall ensure compliance with the Civil Service Reform Act 
of 1978 by obtaining a suitable

[[Page 672]]

investigation of an allegation, including compliance with time limits 
for reporting results of the investigation and personal review of the 
report by the head of the Component when required.
    (4) Copies of each allegation referred under paragraph (a)(2) shall 
be forwarded by the General Counsel concerned to the IG, DoD.
    (b) OSC Investigations of Prohibited Personnel Practices. (1) The 
head of each DoD Component shall designate a Senior Management Official 
to:
    (i) Serve as a point of contact in providing assistance to the OSC 
in conducting investigations of alleged prohibited activities before any 
designation of an attorney of record for the Component or individual 
respondent for matters in litigation.
    (ii) Monitor those investigations.
    (iii) Ensure that appropriate Component personnel are fully apprised 
of the nature and basis for an OSC investigation, as well as the rights 
and duties of Component personnel in regard to such investigations.
    (iv) Ensure that any corrective or disciplinary action considered 
appropriate because of facts disclosed by such an investigation is 
accomplished under paragraph (b)(2), in a timely manner.
    (2) The designated Senior Management Official shall have authority 
to:
    (i) Refer to responsible officials recommendations by the OSC for 
corrective action.
    (ii) Seek OSC approval of proposed disciplinary action against an 
employee for an alleged prohibited personnel practice or illegal or 
improper act under investigation by the OSC when it is determined that 
such discipline is warranted.
    (iii) Ensure that disciplinary action against an employee adjudged 
at fault following completion of an OSC investigation has been 
considered to avoid the need for a proceeding before the MSPB.
    (iv) Ensure that information concerning members of the Armed Forces 
who are found by the Component to have committed a prohibited personnel 
practice or other violation of this Directive in the exercise of 
authority over civilian personnel is referred to appropriate military 
authority.
    (3) The Senior Management Official shall:
    (i) Establish a system under which an employee is identified to 
serve as the Liaison Officer for any OSC investigator who may initiate 
an investigation at a facility, base, or installation for which the 
employee is assigned liaison duties. It shall be the responsibility of 
the Liaison Officer to:
    (A) Assist the OSC investigator.
    (B) Ensure that all OSC requests for documents are in writing.
    (C) Process such requests, as well as all requests for interviews.
    (ii) Determine, to the extent practicable, whether an investigation 
is being, or has been, conducted that replicates in whole or in part the 
proposed or incomplete investigation by the OSC, and convey that 
information to the OSC whenever this might avoid redundant investigative 
effort.
    (iii) Inform the General Counsel of the Component concerned of any 
OSC investigation and consult with the General Counsel on any legal 
issue related to an OSC investigation.
    (iv) Ensure that Component personnel involved are given timely legal 
and policy advice, through arrangements effected by the Liaison Officer, 
on the nature and basis for an OSC investigation, the authority of the 
OSC, and the rights and duties of Component personnel, including those 
set forth in Appendix.
    (v) Inform the IG, DoD, of any OSC investigation of an alleged 
prohibited personnel practice that is identified as having resulted from 
a whistleblower complaint or involves an allegation of otherwise illegal 
or improper conduct.

               Appendix to Part 145--Legal Representation

    1. An employee or member of the Armed Forces asked to provide 
information (testimonial or documentary) to the OSC in the course of an 
investigation by that office may obtain legal advice from DoD attorneys, 
both civilian and military, on that employee's or members's rights and 
obligations. This includes assistance at any interviews with OSC 
investigators. However, the attorney-client relationship shall not be 
established unless the employee is suspected or accused by the OSC of 
committing a prohibited personnel practice or other illegal or improper 
act and has been assigned DoD counsel.

[[Page 673]]

    2. An employee who believes that he or she is suspected or has been 
accused by the OSC of committing a prohibited personnel practice or 
other illegal or improper act may obtain legal representation from the 
Department of Defense under the conditions prescribed in Sec. 145(b)(1) 
of this part, except as provided in section 7, below. The attorney 
assigned shall be a military member or employee from another Component 
whenever an attorney from the same Component is likely to face a 
conflict between his or her ethical obligation to the employee client 
and to the Component employer, and in any case where the suspected or 
accused employee has requested representation from another Component. 
Outside legal counsel may be retained by the Component on behalf of the 
employee only under unusual circumstances and only with the personal 
approval of the General Counsel of the Department of Defense.
    3. The General Counsel responsible for authorizing representation 
shall determine whether a conflict is liable to occur if an attorney 
from the same Component is assigned to represent the employee and, in 
that case or in a case in which the suspected or accused employee has 
requested representation from another Component, shall seek the 
assistance of another General Counsel in obtaining representation from 
outside the Component. The General Counsels of the Military Departments 
and the DLA shall ensure the availability of appropriately trained 
counsel for assignment to such cases.
    4. To obtain legal representation the employee:
    a. Must request legal representation, in writing, together with all 
process and pleadings served, and explain the circumstances that justify 
DoD legal assistance.
    b. Indicate whether he or she has retained legal counsel from 
outside the Department of Defense.
    c. Obtain a written certification from his or her supervisor that 
the employee was acting within the scope of his of her official duties, 
and that no adverse or disciplinary personnel action against the 
employee for the conduct being investigated by the OSC has been 
initiated by the Component.
    5. Employee requests for legal representation must be approved by 
the General Counsel, DoD, for employees of OSD or a Defense Agency 
(other than the DLA), or by the General Counsel of a Military Department 
or the General Counsel of the DLA for employees of those Components.
    6. The conditions of legal representation must be explained to the 
accused employee in writing and accepted in writing by that employee.
    7. DoD resources may not be used to provide legal representation for 
an employee with respect to a DoD disciplinary action against the 
employee for committing or participating in a prohibited personnel 
practice or for engaging in illegal or improper conduct, regardless of 
whether that participation or conduct is also the basis for disciplinary 
action proposed by the OSC.
    8. After approval of an employee's request, under section 4, above, 
a DoD attorney shall be assigned (or, in unusual circumstances, outside 
counsel retained) as the employee's representative in matters pending 
before the OSC or MSPB. This approval may be limited to representing the 
employee only with respect to some of the pending matters if other 
specific matters of concern to the OSC or MSPB do not satisfy the 
requirements of his Directive.
    9. An attorney-client relationship shall be established and 
continued between the suspected or accused employee and assigned DoD 
counsel.
    10. In representing a DoD employee under this part, a DoD attorney 
designated counsel for the employee shall act as a vigorous advocate of 
the employee's individual legal interests before the OSC or MSPB; the 
attorney's professional responsibility to the Department of Defense and 
his or her employing Component will be satisfied by fulfilling this 
responsibility to the employee. Legal representation may be terminated 
only with the approval of the General Counsel who authorized 
representation, and normally only on the basis of information not 
available at the time the attorney was assigned.
    11. The attorney-client relationship may be terminated if the 
assigned DoD counsel for the employee determines, with the approval of 
the General Counsel who authorizes representation, that:
    a. The employee was acting outside the scope of his or her official 
duties when engaging in the conduct that is the basis for the OSC 
investigation or charge.
    b. Termination of the professional representation is not in 
violation of the rules of professional conduct applicable to the 
assigned counsel.
    12. The DoD attorney designated counsel may request relief from the 
duties of representation or counseling without being required to furnish 
explanatory information that might compromise the assurance to the 
client of confidentiality.
    13. This part authorizes cognizant DoD officials to approve a 
represented employee's request for travel, per diem, witness 
appearances, or other departmental support necessary to ensure effective 
legal representation of the employee by the designated counsel.
    14. An employee's participation in OSC investigations, MSPB 
hearings, and other related proceedings shall be considered official 
departmental business for time and attendance requirements and similar 
purposes.

[[Page 674]]

    15. The following advice to employees questioned during the course 
of an OSC investigation may be appropriate in response to the most 
frequent inquiries:
    a. An employee may decline to provide a ``yes'' or ``no'' answer in 
favor of a more qualified answer when this is necessary to ensure 
accuracy in responding to an OSC interviewer's questions.
    b. Requests for clarification of both questions and answers are 
appropriate to avoid misinterpretation.
    c. Means to ensure verification of an interview by OSC investigators 
are appropriate, whether the employee is or is not accompanied by a 
legal representative. Tape recorders may only be used for this purpose 
when:
    (1) The recorder is used in full view.
    (2) All attendees are informed.
    (3) The OSC interrogator agrees to the tape recording of the 
proceeding.
    d. Any errors that appear in a written summary of an interview 
prepared by the interviewer should be corrected before the employee 
signs the statement. The employee is not required to sign any written 
summary that is not completely accurate. An employee may make a copy of 
the summary for his or her own use as a condition of signing.



PART 146--COMPLIANCE OF DOD MEMBERS, EMPLOYEES, AND FAMILY MEMBERS OUTSIDE THE UNITED STATES WITH COURT ORDERS--Table of Contents




Sec.
146.1  Purpose.
146.2  Applicability.
146.3  Definitions.
146.4  Policy.
146.5  Responsibilities.
146.6  Procedures.

    Authority: 5 U.S.C. 301; 10 U.S.C. 113; 10 U.S.C. 814; Pub. L. 100-
456 section 721.

    Source: 54 FR 298, Jan. 5, 1989, unless otherwise noted.



Sec. 146.1  Purpose.

    This part:
    (a) Implements section 721 of Pub. L. 100-456.
    (b) Establishes policy and procedures for the return to the United 
States of, or other action affecting, DoD members and employees serving 
outside the United States, and family members accompanying them.
    (c) Prescribes procedures for treating such individuals who have 
been charged with, or convicted of, a felony in a court, have been held 
in contempt of a court for failure to obey the court's order, or have 
been ordered to show cause by a court why they should not be held in 
contempt for failing to obey the court's order.



Sec. 146.2  Applicability.

    This part applies to the Office of the Secretary of Defense (OSD), 
the Military Departments, the Joint Chiefs of Staff (JCS), the Joint 
Staff, the Unified and Specified Commands, the Inspector General of the 
Department of Defense (IG, DoD), the Uniformed Services University of 
the Health Sciences (USUHS), the Defense Agencies, and the DoD Field 
Activities (hereafter referred to collectively as ``DoD Components'').



Sec. 146.3  Definitions.

    Court. Any judicial body in the United States with jurisdiction to 
impose criminal sanctions on a DoD member, employee, or family member.
    DoD Employee. A civilian employed by a DoD Component, including an 
individual paid from nonappropriated funds, who is a citizen or national 
of the United States.
    DoD Member. An individual who is a member of the Armed Forces on 
active duty and is under the jurisdiction of the Secretary of a Military 
Department, regardless whether that individual is assigned to duty 
outside that Military Department.
    Felony. A criminal offense that is punishable by incarceration for 
more than 1 year, regardless of the sentence that is imposed for 
commission of that offense.
    United States. The 50 States, the District of Columbia, Puerto Rico, 
Guam, the Northern Mariana Islands, American Samoa, and the Virgin 
Islands.



Sec. 146.4  Policy.

    It is DoD policy that:
    (a) With due regard for mission requirements, the provisions of 
applicable international agreements, and ongoing DoD investigations and 
courts-martial, the Department of Defense shall cooperate with courts 
and State and local officials in enforcing court orders relating to DoD 
members and employees stationed outside the United

[[Page 675]]

States, as well as their family members who accompany them, who have 
been charged with, or convicted of, a felony in a court, have been held 
in contempt by a court for failure to obey the court's order, or have 
been ordered to show cause why they should not be held in contempt for 
failing to obey the court's order.
    (b) This part does not affect the authority of DoD Components to 
cooperate with courts and State and local officials in enforcing orders 
against DoD members and employees outside the United States on matters 
not listed in paragraph (a) of this section.
    (c) This part does not create any rights or remedies and may not be 
relied on by any person, organization, or other entity to allege a 
denial of such rights or remedies.



Sec. 146.5  Responsibilities.

    (a) The General Counsel of the Department of Defense (GC, DoD) 
shall:
    (1) Issue Instructions and other guidance, as necessary, to 
implement this part.
    (2) Review and approve the implementing documents issued by DoD 
Components under this part.
    (3) Coordinate on requests for exception to the requirements of this 
part under Sec. 146.5(b).
    (b) The Assistant Secretary of Defense (Force Management and 
Personnel (ASD(FM&P)), with the concurrence of the GC, DoD, shall grant 
exceptions on a case-by-case basis to the requirements of Sec. 146.6. In 
exercising this authority, the ASD(FM&P), on request by the DoD 
Component concerned, shall give due consideration to the pertinent 
mission requirements, readiness, discipline, and ongoing DoD 
investigations and courts-martial.
    (c) The Heads of DoD Components shall:
    (1) Comply with this part.
    (2) Issue Regulations implementing this part.
    (3) Report promptly to the ASD(FM&P) and GC, DoD, any action taken 
under paragraphs (a) (1) and (2) of Sec. 146.6.



Sec. 146.6  Procedures.

    (a) On receipt of a request for assistance from a court, or a 
Federal, State, or local official concerning a court order described in 
Sec. 146.4(a), the Head of the DoD Component concerned, or designee, 
shall determine whether the request is based on an order issued by a 
court of competent jurisdiction. Attempts shall be made to resolve the 
matter to the satisfaction of the court without the return of, or other 
action affecting, the member, employee, or family member (subject). 
Before action is taken under this section, the subject shall be afforded 
the opportunity to provide evidence of legal efforts to resist the court 
order, or otherwise show legitimate cause for noncompliance. If the Head 
of the DoD Component concerned determines that such efforts warrant a 
delay in taking action under this section, the DoD Component Head may 
grant a brief delay (not more than 90 days). All delays promptly shall 
be reported to the ASD(FM&P) and to the GC, DoD.
    (1) If the request pertains to a felony or to contempt involving the 
unlawful or contemptuous removal of a child from the jurisdiction of a 
court or the custody of a parent or another person awarded custody by 
court order, and the matter cannot be resolved with the court without 
the return of the subject to the United States, the Head of the DoD 
Component, or designee, promptly shall take the action prescribed in 
paragraphs (b) through (d) of this section, unless the ASD(FM&P), or 
designee, grants an exception.
    (2) If the request does not pertain to a felony or contempt 
involving the unlawful or contemptuous removal of a child from the 
jurisdiction of the court or the custody of a parent or another person 
awarded custody by court order, and if the matter cannot be resolved 
with the court without the return of the subject to the United States, 
the Head of the DoD Component, or designee, promptly shall take the 
action prescribed in paragraphs (b) through (d) of this section, when 
deemed appropriate with the facts and circumstances of each particular 
case, following consultation with legal staff.
    (b) If a DoD member is the subject of the request, the member shall 
be ordered, under 10 U.S.C. 814, to return expeditiously to an 
appropriate port of

[[Page 676]]

entry at Government expense, contingent on the party requesting return 
of the member providing for transportation, and escort, if desired, of 
the member from such port of entry to the jurisdiction of the party. The 
party requesting return of the member shall be notified at least 10 days 
before the member's return to the selected port of entry, absent unusual 
circumstances.
    (c) If a DoD employee is the subject of the request concerning the 
court order, the employee strongly shall be encouraged to comply with 
the court order. Failure to respond to the court order may be a basis 
for withdrawal of command sponsorship and may be the basis for adverse 
action against the DoD employee, to include removal from the Federal 
Service. Proposals to take such adverse action must be approved by the 
Head of the DoD Component concerned, or designee. Such proposals shall 
be coordinated with the cognizant civilian personnel office and legal 
counsel.
    (d) If the family member of a DoD member or employee is the subject 
of a request concerning the court order, the family member strongly 
shall be encouraged to comply with the court order. Failure to respond 
to the court order may be a basis for withdrawing the command 
sponsorship of the family member.
[54 FR 298, Jan. 5, 1989, as amended at 55 FR 34555, Aug. 23, 1990]



PART 147--ADJUDICATIVE GUIDELINES FOR DETERMINING ELIGIBILITY FOR ACCESS TO CLASSIFIED INFORMATION--Table of Contents




                   Subpart A--Adjudicative Guidelines

Sec.
147.1  Introduction.
147.2  Adjudicative process.
147.3  Guideline A--Allegiance to the United States.
147.4  Guideline B--Foreign influence.
147.5  Guideline C--Foreign preference.
147.6  Guideline D--Sexual behavior.
147.7  Guideline E--Personal conduct.
147.8  Guideline F--Financial considerations.
147.9  Guideline G--Alcohol consumption.
147.10  Guideline H--Drug involvement.
147.11  Guideline I--Emotional, mental, and personality disorders.
147.12  Guideline J--Criminal conduct.
147.13  Guideline K--Security violations.
147.14  Guideline L--Outside activities.
147.15  Guideline M--Misuse of information technology systems.

                   Subpart B--Investigative Standards

147.18  Introduction.
147.19  The three standards.
147.20  Exception to periods of coverage.
147.21  Expanding investigations.
147.22  Transferability.
147.23  Breaks in service.
147.24  The national agency check.

               Subpart C--Guidelines for Temporary Access

147.28  Introduction.
147.29  Temporary eligibility for access.
147.30  Temporary eligibility for access at the CONFIDENTIAL AND SECRET 
          levels and temporary eligibility for ``L'' access 
          authorization.
147.31  Temporary eligibility for access at the TOP SECRET levels and 
          temporary eligibility for ``Q'' access authorization. For 
          someone who is the subject of a favorable investigation not 
          meeting the investigative standards for access at those 
          levels.
147.32  Temporary eligibility for access at the TOP SECRET and SCI 
          levels and temporary eligibility for ``Q'' access 
          authorization: For someone who is not the subject of a 
          current, favorable personnel or personnel-security 
          investigation of any kind.
147.33  Additional requirements by agencies.

    Authority:  E.O. 12968 (60 FR 40245, 3 CFR 1995 Comp., p 391).

    Source: 63 FR 4573, Jan. 30, 1998, unless otherwise noted.



                         Subpart A--Adjudication



Sec. 147.1  Introduction.

    The following adjudicative guidelines are established for all United 
States Government civilian and military personnel, consultants, 
contractors, employees of contractors, licensees, certificate holders or 
grantees and their employees and other individuals who require access to 
classified information. They apply to persons being considered for 
initial or continued eligibility for access to classified information, 
to include sensitive compartmented information and special access 
programs and are to be used by government departments and agencies in 
all final clearance determinations.

[[Page 677]]



Sec. 147.2  Adjudicative process.

    (a) The adjudicative process is an examination of a sufficient 
period of a person's life to make an affirmative determination that the 
person is eligible for a security clearance. Eligibility for access to 
classified information is predicated upon the individual meeting these 
personnel security guidelines. The adjudicative process is the careful 
weighing of a number of variables known as the whole person concept. 
Available, reliable information about the person, past and present, 
favorable and unfavorable, should be considered in reaching a 
determination. In evaluating the relevance of an individual's conduct, 
the adjudicator should consider the following actors:
    (1) The nature, extent, and seriousness of the conduct;
    (2) The circumstances surrounding the conduct, to include 
knowledgeable participation;
    (3) The frequency and recency of the conduct;
    (4) The individual's age and maturity at the time of the conduct;
    (5) The voluntariness of participation;
    (6) The presence or absence of rehabilitation and other pertinent 
behavioral changes;
    (7) The motivation for the conduct;
    (8) The potential for pressure, coercion, exploitation, or duress;
    (9) The likelihood of continuation of recurrence.
    (b) Each case must be judged on its own merits, and final 
determination remains the responsibility of the specific department or 
agency. Any doubt as to whether access to classified information is 
clearly consistent with national security will be resolved in favor of 
the national security.
    (c) The ultimate determination of whether the granting or continuing 
of eligibility for a security clearance is clearly consistent with the 
interests of national security must be an overall common sense 
determination based upon careful consideration of the following, each of 
which is to be evaluated in the context of the whole person, as 
explained further below:
    (1) Guideline A: Allegiance to the United States.
    (2) Guideline B: Foreign influence.
    (3) Guideline C: Foreign preference.
    (4) Guideline D: Sexual behavior.
    (5) Guideline E: Personal conduct.
    (6) Guideline F: Financial considerations.
    (7) Guideline G: Alcohol consumption.
    (8) Guideline H: Drug involvement.
    (9) Guideline I: Emotional, mental, and personality disorders.
    (10) Guideline J: Criminal conduct.
    (11) Guideline K: Security violations.
    (12) Guideline L: Outside activities.
    (13) Guideline M: Misuse of Information Technology Systems.
    (d) Although adverse information concerning a single criterion may 
not be sufficient for an unfavorable determination, the individual may 
be disqualified if available information reflects a recent or recurring 
pattern of questionable judgment, irresponsibility, or emotionally 
unstable behavior. Notwithstanding, the whole person concept, pursuit of 
further investigations may be terminated by an appropriate adjudicative 
agency in the face of reliable, significant, disqualifying, adverse 
information.
    (e) When information of security concern becomes known about an 
individual who is currently eligible for access to classified 
information, the adjudicator should consider whether the person:
    (1) Voluntarily reported the information;
    (2) Was truthful and complete in responding to questions;
    (3) Sought assistance and followed professional guidance, where 
appropriate;
    (4) Resolved or appears likely to favorably resolve the security 
concern;
    (5) Has demonstrated positive changes in behavior and employment;
    (6) Should have his or her access temporarily suspended pending 
final adjudication of the information.
    (f) If after evaluating information of security concern, the 
adjudicator decides that the information is not serious enough to 
warrant a recommendation of disapproval or revocation of the security 
clearance, it may be appropriate to recommend approval with a warning 
that future incidents of a similar nature may result in revocation of 
access.

[[Page 678]]



Sec. 147.3  Guideline A--Allegiance to the United States.

    (a) The concern. An individual must be of unquestioned allegiance to 
the United States. The willingness to safeguard classified information 
is in doubt if there is any reason to suspect an individual's allegiance 
to the Untied States.
    (b) Conditions that could raise a security concern and may be 
disqualifying include: (1) Involvement in any act of sabotage, 
espionage, treason, terrorism, sedition, or other act whose aim is to 
overthrow the Government of the United States or alter the form of 
government by unconstitutional means;
    (2) Association or sympathy with persons who are attempting to 
commit, or who are committing, any of the above acts;
    (3) Association or sympathy with persons or organizations that 
advocate the overthrow of the United States Government, or any state or 
subdivision, by force or violence or by other unconstitutional means;
    (4) Involvement in activities which unlawfully advocate or practice 
the commission of acts of force or violence to prevent others from 
exercising their rights under the Constitution or laws of the United 
States or of any state.
    (c) Conditions that could mitigate security concerns include: (1) 
The individual was unaware of the unlawful aims of the individual or 
organization and severed ties upon learning of these;
    (2) The individual's involvement was only with the lawful or 
humanitarian aspects of such an organization;
    (3) Involvement in the above activities occurred for only a short 
period of time and was attributable to curiosity or academic interest;
    (4) The person has had no recent involvement or association with 
such activities.



Sec. 147.4   Guideline B--Foreign influence.

    (a) The concern. A security risk may exist when an individual's 
immediate family, including cohabitants and other persons to whom he or 
she may be bound by affection, influence, or obligation are not citizens 
of the Untied States or may be subject to duress. These situations could 
create the potential for foreign influence that could result in the 
compromise of classified information. Contacts with citizens of other 
countries or financial interests in other countries are also relevant to 
security determinations if they make an individual potentially 
vulnerable to coercion, exploitation, or pressure.
    (b) Conditions that could raise a security concern and may be 
disqualifying include: (1) An immediate family member, or a person to 
whom the individual has close ties of affection or obligation, is a 
citizen of, or resident or present in, a foreign country;
    (2) Sharing living quarters with a person or persons, regardless of 
their citizenship status, if the potential for adverse foreign influence 
or duress exists;
    (3) Relatives, cohabitants, or associates who are connected with any 
foreign government;
    (4) Failing to report, where required, associations with foreign 
nationals;
    (5) Unauthorized association with a suspected or known collaborator 
or employee of a foreign intelligence service;
    (6) Conduct which may make the individual vulnerable to coercion, 
exploitation, or pressure by a foreign government;
    (7) Indications that representatives or nationals from a foreign 
country are acting to increase the vulnerability of the individual to 
possible future exploitation, coercion or pressure;
    (8) A substantial financial interest in a country, or in any foreign 
owned or operated business that could make the individual vulnerable to 
foreign influence.
    (c) Conditions that could mitigate security concerns include: (1) A 
determination that the immediate family member(s) (spouse, father, 
mother, sons, daughters, brothers, sisters), cohabitant, or associate(s) 
in question are not agents of a foreign power or in a position to be 
exploited by a foreign power in a way that could force the individual to 
choose between loyalty to the person(s) involved and the United States;
    (2) Contacts with foreign citizens are the result of official United 
States Government business;
    (3) Contact and correspondence with foreign citizens are casual and 
infrequent;

[[Page 679]]

    (4) The individual has promptly complied with existing agency 
requirements regarding the reporting of contacts, requests, or threats 
from persons or organizations from a foreign country;
    (5) Foreign financial interests are minimal and not sufficient to 
affect the individual's security responsibilities.



Sec. 147.5  Guideline C--Foreign preference.

    (a) The concern. When an individual acts in such a way as to 
indicate a preference for a foreign country over the United States, then 
he or she may be prone to provide information or make decisions that are 
harmful to the interests of the United States.
    (b) Conditions that could raise a security concern and may be 
disqualifying include:
    (1) The exercise of dual citizenship;
    (2) Possession and/or use of a foreign passport;
    (3) Military service or a willingness to bear arms for a foreign 
country;
    (4) Accepting educational, medical, or other benefits, such as 
retirement and social welfare, from a foreign country;
    (5) Residence in a foreign country to meet citizenship requirements;
    (6) Using foreign citizenship to protect financial or business 
interests in another country;
    (7) Seeking or holding political office in the foreign country;
    (8) Voting in foreign elections;
    (9) Performing or attempting to perform duties, or otherwise acting, 
so as to serve the interests of another government in preference to the 
interests of the United States.
    (c) Conditions that could mitigate security concerns include: (1) 
Dual citizenship is based solely on parents' citizenship or birth in a 
foreign country;
    (2) Indicators of possible foreign preference (e.g., foreign 
military service) occurred before obtaining United States citizenship;
    (3) Activity is sanctioned by the United States;
    (4) Individual has expressed a willingness to renounce dual 
citizenship.



Sec. 147.6  Guidance D--Sexual behavior.

    (a) The concern. Sexual behavior is a security concern if it 
involves a criminal offense, indicates a personality or emotional 
disorder, may subject the individual to coercion, exploitation, or 
duress, or reflects lack of judgment or discretion.\1\ Sexual 
orientation or preference may not be used as a basis for or a 
disqualifying factor in determining a person's eligibility for a 
security clearance.
---------------------------------------------------------------------------

    \1\ The adjudicator should also consider guidelines pertaining to 
criminal conduct (Guideline J) and emotional, mental and personality 
disorders (Guideline I) in determining how to resolve the security 
concerns raised by sexual behavior.
---------------------------------------------------------------------------

    (b) Conditions that could raise a security concern and may be 
disqualifying include: (1) Sexual behavior of a criminal nature, whether 
or not the individual has been prosecuted;
    (2) Compulsive or addictive sexual behavior when the person is 
unable to stop a pattern or self-destructive or high-risk behavior or 
that which is symptomatic of a personally disorder;
    (3) Sexual behavior that causes an individual to be vulnerable to 
coercion, exploitation, or duress;
    (4) Sexual behavior of a public nature and/or that which reflects 
lack of discretion or judgment.
    (c) Conditions that could mitigate security concerns include: (1) 
The behavior occurred during or prior to adolescence and there is no 
evidence of subsequent conduct of a similar nature;
    (2) The behavior was not recent and there is no evidence of 
subsequent conduct of a similar nature;
    (3) There is no other evidence of questionable judgment, 
irresponsibility, or emotional instability;
    (4) The behavior no longer serves as a basis for coercion, 
exploitation, or duress.



Sec. 147.7  Guideline E--Personal conduct.

    (a) The concern. Conduct involving questionable judgment, 
untrustworthiness, unreliability, lack of candor, dishonesty, or 
unwillingness to comply with rules and regulations could indicate that 
the person may not

[[Page 680]]

properly safeguard classified information. The following will normally 
result in an unfavorable clearance action or administrative termination 
of further processing for clearance eligibility:
    (1) Refusal to undergo or cooperate with required security 
processing, including medical and psychological testing;
    (2) Refusal to complete required security forms, releases, or 
provide full, frank and truthful answers to lawful questions of 
investigators, security officials or other representatives in connection 
with a personnel security or trustworthiness determination.
    (b) Conditions that could raise a security concern and may be 
disqualifying also include: (1) Reliable, unfavorable information 
provided by associates, employers, coworkers, neighbors, and other 
acquaintances;
    (2) The deliberate omission, concealment, or falsification of 
relevant and material facts from any personnel security questionnaire, 
personal history statement, or similar form used to conduct 
investigations, determine employment qualifications, award benefits or 
status, determine security clearance eligibility or trustworthiness, or 
award fiduciary responsibilities;
    (3) Deliberately providing false or misleading information 
concerning relevant and material matters to an investigator, security 
official, competent medical authority, or other representative in 
connection with a personnel security or trustworthiness determination;
    (4) Personal conduct or concealment of information that may increase 
an individual's vulnerability to coercion, exploitation, or duties, such 
as engaging in activities which, if known, may affect the person's 
personal, professional, or community standing or render the person 
susceptible to blackmail;
    (5) A pattern of dishonesty or rule violations, including violation 
of any written or recorded agreement made between the individual and the 
agency;
    (6) Association with persons involved in criminal activity.
    (c) Conditions that could mitigate security concerns include: (1) 
The information was unsubstantiated or not pertinent to a determination 
of judgment, trustworthiness, or reliability;
    (2) The falsification was an isolated incident, was not recent, and 
the individual has subsequently provided correct information 
voluntarily;
    (3) The individual made prompt, good faith efforts to correct the 
falsification before being confronted with the facts;
    (4) Omission of material facts was caused or significantly 
contributed to by improper or inadequate advice of authorized personnel, 
and the previously omitted information was promptly and fully provided;
    (5) The individual has taken positive steps to significantly reduce 
or eliminate vulnerability to coercion, exploitation, or duress;
    (6) A refusal to cooperate was based on advice from legal counsel or 
other officials that the individual was not required to comply with 
security processing requirements and, upon being made aware of the 
requirement, fully and truthfully provided the requested information;
    (7) Association with persons involved in criminal activities has 
ceased.



Sec. 147.8  Guideline F--Financial considerations.

    (a) The concern. An individual who is financially overextended is at 
risk of having to engage in illegal acts to generate funds. Unexplained 
affluence is often linked to proceeds from financially profitable 
criminal acts.
    (b) Conditions that could raise a security concern and may be 
disqualifying include: (1) A history of not meeting financial 
obligations;
    (2) Deceptive or illegal financial practices such as embezzlement, 
employee theft, check fraud, income tax evasion, expense account fraud, 
filing deceptive loan statements, and other intentional financial 
breaches of trust;
    (3) Inability or unwillingness to satisfy debts;
    (4) Unexplained affluence;
    (5) Financial problems that are linked to gambling, drug abuse, 
alcoholism, or other issues of security concern.
    (c) Conditions that could mitigate security concerns include: (1) 
The behavior was not recent;
    (2) It was an isolated incident;

[[Page 681]]

    (3) The conditions that resulted in the behavior were largely beyond 
the person's control (e.g., loss of employment, a business downtrun, 
unexpected medical emergency, or a death, divorce or separation);
    (4) The person has received or is receiving counseling for the 
problem and there are clear indications that the problem is being 
resolved or is under control;
    (5) The affluence resulted from a legal source;
    (6) The individual initiated a good-faith effort to repay overdue 
creditors or otherwise resolve debts.



Sec. 147.9  Guideline G--Alcohol consumption.

    (a) The concern. Excessive alcohol consumption often leads to the 
exercise of questionable judgment, unreliability, failure to control 
impulses, and increases the risk of unauthorized disclosure of 
classified information due to carelessness.
    (b) Conditions that could raise a security concern and may be 
disqualifying include: (1) Alcohol-related incidents away from work, 
such as driving while under the influence, fighting, child or spouse 
abuse, or other criminal incidents related to alcohol use;
    (2) Alcohol-related incidents at work, such as reporting for work or 
duty in an intoxicated or impaired condition, or drinking on the job;
    (3) Diagnosis by a credentialed medical professional (e.g., 
physician, clinical psychologist, or psychiatrist) of alcohol abuse or 
alcohol dependence;
    (4) Evaluation of alcohol abuse or alcohol dependence by a licensed 
clinical social worker who is a staff member of a recognized alcohol 
treatment program;
    (5) Habitual or binge consumption of alcohol to the point of 
impaired judgment;
    (6) Consumption of alcohol, subsequent to a diagnosis of alcoholism 
by a credentialed medical professional and following completion of an 
alcohol rehabilitation program.
    (c) Conditions that could mitigate security concerns include: (1) 
The alcohol related incidents do not indicate a pattern;
    (2) The problem occurred a number of years ago and there is no 
indication of a recent problem;
    (3) Positive changes in behavior supportive of sobriety;
    (4) Following diagnosis of alcohol abuse or alcohol dependence, the 
individual has successfully completed impatient or outpatient 
rehabilitation along with aftercare requirements, participates 
frequently in meetings of Alcoholics Anonymous or a similar 
organization, has abstained from alcohol for a period of at least 12 
months, and received a favorable prognosis by a credentialed medical 
professional or a licensed clinical social worker who is a staff member 
of a recognized alcohol treatment program.



Sec. 147.10  Guideline H--Drug involvement.

    (a) The concern. (1) Improper or illegal involvement with drugs 
raises questions regarding an individual's willingness or ability to 
protect classified information. Drug abuse or dependence may impair 
social or occupational functioning, increasing the risk of an 
unauthorized disclosure of classified information.
    (2) Drugs are defined as mood and behavior altering substances, and 
include:
    (i) Drugs, materials, and other chemical compounds identified and 
listed in the Controlled Substances Act of 1970, as amended (e.g., 
marijuana or cannabis, depressants, narcotics, stimulants, and 
hallucinogens),
    (ii) Inhalants and other similar substances.
    (3) Drug abuse is the illegal use of a drug or use of a legal drug 
in a manner that deviates from approved medical direction.
    (b) Conditions that could raise a security concern and may be 
disqualifying include: (1) Any drug abuse (see above definition);
    (2) Illegal drug possession, including cultivation, processing, 
manufacture, purchase, sale, or distribution;
    (3) Diagnosis by a credentialed medical professional (e.g., 
physician, clinical psychologist, or psychiatrist) of drug abuse or drug 
dependence;
    (4) Evaluation of drug abuse or drug dependence by a licensed 
clinical social

[[Page 682]]

worker who is a staff member of a recognized drug treatment program;
    (5) Failure to successfully complete a drug treatment program 
prescribed by a credentialed medical professional. Recent drug 
involvement, especially following the granting of a security clearance, 
or an expressed intent not to discontinue use, will almost invariably 
result in an unfavorable determination.
    (c) Conditions that could mitigate security concerns include: (1) 
The drug involvement was not recent;
    (2) The drug involvement was an isolated or aberration event;
    (3) A demonstrated intent not to abuse any drugs in the future;
    (4) Satisfactory completion of a prescribed drug treatment program, 
including rehabilitation and aftercare requirements, without recurrence 
of abuse, and a favorable prognosis by a credentialed medical 
professional.



Sec. 147.11   Guideline I--Emotional, mental, and personality disorders.

    (a) The concern: Emotional, mental, and personality disorders can 
cause a significant deficit in an individual's psychological, social and 
occupation functioning. These disorders are of security concern because 
they may indicate a defect in judgment, reliability, or stability. A 
credentialed mental health professional (e.g., clinical psychologist or 
psychiatrist), employed by, acceptable to or approved by the government, 
should be utilized in evaluating potentially disqualifying and 
mitigating information fully and properly, and particularly for 
consultation with the individual's mental health care provider.
    (b) Conditions that could raise a security concern and may be 
disqualifying include: (1) An opinion by a credentialed mental health 
professional that the individual has a condition or treatment that may 
indicate a defect in judgment, reliability, or stability;
    (2) Information that suggests that an individual has failed to 
follow appropriate medical advice relating to treatment of a condition, 
e.g., failure to take prescribed medication;
    (3) A pattern of high-risk, irresponsible, aggressive, anti-social 
or emotionally unstable behavior;
    (4) Information that suggests that the individual's current behavior 
indicates a defect in his or her judgment or reliability.
    (c) Conditions that could mitigate security concerns include: (1) 
There is no indication of a current problem;
    (2) Recent opinion by a credentialed mental health professional that 
an individual's previous emotional, mental, or personality disorder is 
cured, under control or in remission and has a low probability of 
recurrence or exacerbation;
    (3) The past emotional instability was a temporary condition (e.g., 
one caused by a death, illness, or marital breakup), the situation has 
been resolved, and the individual is no longer emotionally unstable.



Sec. 147.12  Guideline J--Criminal conduct.

    (a) The concern. A history or pattern of criminal activity creates 
doubt about a person's judgment, reliability and trustworthiness.
    (b) Conditions that could raise a security concern and may be 
disqualifying include: (1) Allegations or admissions of criminal 
conduct, regardless of whether the person was formally charged;
    (2) A single serious crime or multiple lesser offenses.
    (c) Conditions that could mitigate security concerns include: (1) 
The criminal behavior was not recent;
    (2) The crime was an isolated incident;
    (3) The person was pressured or coerced into committing the act and 
those pressures are no longer present in that person's life;
    (4) The person did not voluntarily commit the act and/or the factors 
leading to the violation are not likely to recur;
    (5) Acquittal;
    (6) There is clear evidence of successful rehabilitation.



Sec. 147.13  Guideline K--Security violations.

    (a) The concern. Noncompliance with security regulations raises 
doubt about an individual's trustworthiness, willingness, and ability to 
safeguard classified information.

[[Page 683]]

    (b) Conditions that could raise a security concern and may be 
disqualifying include. (1) Unauthorized disclosure of classified 
information;
    (2) Violations that are deliberate or multiple or due to negligence.
    (c) Conditions that could mitigate security concerns include actions 
that: (1) Were inadvertent;
    (2) Were isolated or infrequent;
    (3) Were due to improper or inadequate training;
    (4) Demonstrate a positive attitude towards the discharge of 
security responsibilities.



Sec. 147.14  Guideline L--Outside activities.

    (a) The concern. Involvement in certain types of outside employment 
or activities is of security concern if it poses a conflict with an 
individual's security responsibilities and could create an increased 
risk of unauthorized disclosure of classified information.
    (b) Conditions that could raise a security concern and may be 
disqualifying include any service, whether compensated, volunteer, or 
employment with: (1) A foreign country;
    (2) Any foreign national;
    (3) A representative of any foreign interest;
    (4) Any foreign, domestic, or international organization or person 
engaged in analysis, discussion, or publication of material on 
intelligence, defense, foreign affairs, or protected technology.
    (c) Conditions that could mitigate security concerns include: (1) 
Evaluation of the outside employment or activity indicates that it does 
not pose a conflict with an individual's security responsibilities;
    (2) The individual terminates the employment or discontinues the 
activity upon being notified that it is in conflict with his or her 
security responsibilities.



Sec. 147.15  Guideline M--Misuse of Information technology systems.

    (a) The concern. Noncompliance with rules, procedures, guidelines, 
or regulations pertaining to information technology systems may raise 
security concerns about an individual's trustworthiness, willingness, 
and ability to properly protect classified systems, networks, and 
information. Information Technology Systems include all related 
equipment used for the communication, transmission, processing, 
manipulation, and storage of classified or sensitive information.
    (b) Conditions that could raise a security concern and may be 
disqualifying include: (1) Illegal or unauthorized entry into any 
information technology system;
    (2) Illegal or unauthorized modification, destruction, manipulation 
or denial of access to information residing on an information technology 
system;
    (3) Removal (or use) of hardware, software, or media from any 
information technology system without authorization, when specifically 
prohibited by rules, procedures, guidelines or regulations;
    (4) Introduction of hardware, software, or media into any 
information technology system without authorization, when specifically 
prohibited by rules, procedures, guidelines or regulations.
    (c) Conditions that could mitigate security concerns include: (1) 
The misuse was not recent or significant;
    (2) The conduct was unintentional or inadvertent;
    (3) The introduction or removal of media was authorized;
    (4) The misuse was an isolated event;
    (5) The misuse was followed by a prompt, good faith effort to 
correct the situation.



                   Subpart B--Investigative Standards



Sec. 147.18  Introduction.

    The following investigative standards are established for all United 
States Government civilian and military personnel, consultants, 
contractors, employees of contractors, licensees, certificate holders or 
grantees and their employees and other individuals who require access to 
classified information, to include Sensitive Compartmented Information 
and Special Access Programs, and are to be used by government 
departments and agencies as the investigative basis for final clearance 
determinations. However, nothing in these standards prohibits an agency

[[Page 684]]

from using any lawful investigative procedures in addition to these 
requirements in order to resolve any issue identified in the course of a 
background investigation or reinvestigation.



Sec. 147.19  The three standards.

    There are three standards (Attachment D to this subpart part 
summarizes when to use each one):
    (a) The investigation and reinvestigation standards for ``L'' access 
authorizations and for access to confidential and secret (including all 
secret-level Special Access Programs not specifically approved for 
enhanced investigative requirements by an official authorized to 
establish Special Access Programs by section in 4.4 of Executive Order 
12958) (60 FR 19825, 3 CFR 1995 Comp., p. 33);
    (b) The investigation standard for``Q'' access authorizations and 
for access to top secret (including top secret Special Access Programs) 
and Sensitive Compartmented Information;
    (c) The reinvestigation standard for continued access to the levels 
listed in paragraph (b) of this section.



Sec. 147.20  Exception to periods of coverage.

    Some elements of standards specify a period of coverage (e.g. seven 
years). Where appropriate, such coverage may be shortened to the period 
from the subject's eighteenth birthday to the present or to two years, 
whichever is longer.



Sec. 147.21  Expanding investigations.

    Investigations and reinvestigations may be expanded under the 
provisions of Executive Order 12968 (60 FR 40245, 3 CFR 1995 Comp., p. 
391) and other applicable statutes and Executive Orders.



Sec. 147.22  Transferability.

    Investigations that satisfy the requirements of a given standard and 
are current meet the investigative requirements for all levels specified 
for the standard. They shall be mutually and reciprocally accepted by 
all agencies.



Sec. 147.23  Breaks in service.

    If a person who requires access has been retired or separated from 
U.S. government employment for less than two years and is the subject of 
an investigation that is otherwise current, the agency regranting the 
access will, as a minimum, review an updated Standard Form 86 and 
applicable records. A reinvestigation is not required unless the review 
indicates the person may no longer satisfy the standards of Executive 
Order 12968 (60 FR 40245, 3 CFR 1995 Comp., p. 391); (Attachment D to 
this subpart, Table 2).



Sec. 147.24  The national agency check.

    The National Agency Check is a part of all investigations and 
reinvestigations. It consists of a review of;
    (a) Investigative and criminal history files of the FBI, including a 
technical fingerprint search;
    (b) OPM's Security/Suitability Investigations Index;
    (c) DoD's Defense Clearance and Investigations Index;
    (d) Such other national agencies (e.g., CIA, INS) as appropriate to 
the individual's background.

Attachment A to Subpart B--Standard A--National Agency Check With Local 
                 Agency Checks and Credit Check (NACLC)

    (a) Applicability. Standard A applies to investigations and 
reinvestigations for;
    (1) Access to CONFIDENTIAL and SECRET (including all SECRET-level 
Special Access Programs not specifically approved for enhanced 
investigative requirements by an official authorized to establish 
Special Access Programs by sect. 4.4 of Executive Order 12958) (60 FR 
19825, 3 CFR 1995 Comp., p. 333);
    (2) ``L'' access authorizations.
    (b) For Reinvestigation: When to Reinvestigate. The reinvestigation 
may be initiated at any time following completion of, but not later than 
ten years (fifteen years for CONFIDENTIAL) from the date of, the 
previous investigation or reinvestigation. (Attachment D to this 
subpart, Table 2, reflects the specific requirements for when to request 
a reinvestigation, including when there has been a break in service.)

[[Page 685]]

    (c) Investigative Requirements. Investigative requirements are as 
follows:
    (1) Completion of Forms: Completion of Standard Form 86, including 
applicable releases and supporting documentation.
    (2) National Agency Check: Completion of a National Agency Check.
    (3) Financial Review: Verification of the subject's financial 
status, including credit bureau checks covering all locations where the 
subject has resided, been employed, or attended school for six months or 
more for the past seven years.
    (4) Date and Place of Birth: Corroboration of date and place of 
birth through a check of appropriate documentation, if not completed in 
any previous investigation; a check of Bureau of Vital Statistics 
records when any discrepancy is found to exist.
    (5) Local Agency Checks: As a minimum, all investigations will 
include checks of law enforcement agencies having jurisdiction where the 
subject has lived, worked, and/or attended school within the last five 
years, and, if applicable, of the appropriate agency for any identified 
arrests.
    (d) Expanding the Investigation: The investigation may be expanded 
if necessary to determine if access is clearly consistent with the 
national security.

     Attachment B to Subpart B--Standard B--Single Scope Background 
                          Investigation (SSBI)

    (a) Applicability. Standard B applies to initial investigations for;
    (1) Access to TOP SECRET (including TOP SECRET Special Access 
Programs) and Sensitive Compartment Information;
    (2) ``Q'' access authorizations.
    (b) Investigative Requirements. Investigative requirements are as 
follows:
    (1) Completion of Forms: Completion of Standard Form 86, including 
applicable releases and supporting documentation.
    (2) National Agency Check: Completion of a National Agency Check.
    (3) National Agency Check for the Spouse or Cohabitant (if 
applicable): Completion of a National Agency Check, without fingerprint 
cards, for the spouse or cohabitant.
    (4) Date and Place of Birth: Corroboration of date and place of 
birth through a check of appropriate documentation; a check of Bureau of 
Vital Statistics records when any discrepancy is found to exist.
    (5) Citizenship: For individuals born outside the United States, 
verification of US citizenship directly from the appropriate 
registration authority; verification of US citizenship or legal status 
of foreign-born immediate family members (spouse, cohabitant, father, 
mother, sons, daughters, brothers, sisters).
    (6) Education: Corroboration of most recent or most significant 
claimed attendance, degree, or diploma. Interviews of appropriate 
educational sources if education is a primary activity of the subject 
during the most recent three years.
    (7) Employment: Verification of all employments for the past seven 
years; personal interviews of sources (supervisors, coworkers, or both) 
for each employment of six months or more; corroboration through records 
or sources of all periods of unemployment exceeding sixty days; 
verification of all prior federal and military service, including 
discharge type. For military members, all service within one branch of 
the armed forces will be considered as one employment, regardless of 
assignments.
    (8) References: Four references, of whom at least two are developed; 
to the extent practicable, all should have social knowledge of the 
subject and collectively span at least the last seven years.
    (9) Former Spouse: An interview of any former spouse divorced within 
the last ten years.
    (10) Neighborhoods: Confirmation of all residences for the last 
three years through appropriate interviews with neighbors and through 
records reviews.
    (11) Financial Review: Verification of the subject's financial 
status, including credit bureau checks covering all locations where 
subject has resided, been employed, and/or attended school for six 
months or more for the last seven years.

[[Page 686]]

    (12) Local Agency Checks: A check of appropriate criminal history 
records covering all locations where, for the last ten years, the 
subject has resided, been employed, and/or attended school for six 
months or more, including current residence regardless of duration.


    Note:  If no residence, employment, or education exceeds six months, 
local agency checks should be performed as deemed appropriate.


    (13) Public Records: Verification of divorces, bankruptcies, and 
other court actions, whether civil or criminal, involving the subject.
    (14) Subject Interview: A subject interview, conducted by trained 
security, investigative, or counterintelligence personnel. During the 
investigation, additional subject interviews may be conducted to collect 
relevant information, to resolve significant inconsistencies, or both. 
Sworn statements and unsworn declarations may be taken whenever 
appropriate.
    (15) Polygraph (only in agencies with approved personnel security 
polygraph programs): In departments or agencies with policies 
sanctioning the use of the polygraph for personnel security purposes, 
the investigation may include a polygraph examination, conducted by a 
qualified polygraph examiner.
    (c) Expanding the Investigation. The investigation may be expanded 
as necessary. As appropriate, interviews with anyone able to provide 
information or to resolve issues, including but not limited to 
cohabitants, relatives, psychiatrists, psychologists, other medical 
professionals, and law enforcement professionals may be conducted.

     Attachment C to Subpart B--Standard C--Single Scope Background 
            Investigation Periodic Reinvestigation (SSBI-PR)

    (a) Applicability. Standard C applies to reinvestigation for;
    (1) Access to TOP SECRET (including TOP SECRET Special Access 
Programs) and Sensitive Compartmented Information;
    (2) ``Q'' access authorizations.
    (b) When to Reinvestigate. The reinvestigation may be initiated at 
any time following completion of, but not later than five years from the 
date of, the previous investigation (see Attachment D to this subpart, 
Table 2).
    (c) Reinvestigative Requirements. Reinvestigative requirements are 
as follows:
    (1) Completion of Forms: Completion of Standard Form 86, including 
applicable releases and supporting documentation.
    (2) National Agency Check: Completion of a National Agency Check 
(fingerprint cards are required only if there has not been a previous 
valid technical check of the FBI).
    (3) National Agency Check for the Spouse or Cohabitant (if 
applicable): Completion of a National Agency Check, without fingerprint 
cards, for the spouse or cohabitant. The National Agency Check for the 
spouse or cohabitant is not required if already completed in conjunction 
with a previous investigation or reinvestigation.
    (4) Employment: Verification of all employments since the last 
investigation. Attempts to interview a sufficient number of sources 
(supervisors, coworkers, or both) at all employments of six months or 
more. For military members, all services within one branch of the armed 
forces will be considered as one employment, regardless of assignments.
    (5) References: Interviews with two character references who are 
knowledgeable of the subject; at least one will be a developed 
reference. To the extent practical, both should have social knowledge of 
the subject and collectively span the entire period of the 
reinvestigation. As appropriate, additional interviews may be conducted, 
including with cohabitants and relatives.
    (6) Neighborhoods: Interviews of two neighbors in the vicinity of 
the subject's most recent residence of six months or more. Confirmation 
of current residence regardless of length.
    (7) Financial Review:--Financial Status: Verification of the 
subject's financial status, including credit bureau checks covering all 
locations where subject has resided, been employed, and/or attended 
school for six months or more for the period covered by the 
reinvestigation;

[[Page 687]]

    (ii) Check of Treasury's Financial Data Base: Agencies may request 
the Department of the Treasury, under terms and conditions prescribed by 
the Secretary of the Treasury, to search automated data bases consisting 
of reports of currency transactions by financial institutions, 
international transportation of currency or monetary instruments, 
foreign bank and financial accounts, and transactions under $10,000 that 
are reported as possible money laundering violations.
    (8) Local Agency Checks: A check of appropriate criminal history 
records covering all locations where, during the period covered by the 
reinvestigation, the subject has resided, been employed, and/or attended 
school for six months or more, including current residence regardless of 
duration. (Note: If no residence, employment, or education exceeds six 
months, local agency checks should be performed as deemed appropriate.)
    (9) Former Spouse: An interview with any former spouse unless the 
divorce took place before the date of the last investigation or 
reinvestigation.
    (10) Public Records: Verification of divorces, bankruptcies, and 
other court actions, whether civil or criminal, involving the subject 
since the date of the last investigation.
    (11) Subject Interview: A subject interview, conducted by trained 
security, investigative, or counterintelligence personnel. During the 
reinvestigation, additional subject interviews may be conducted to 
collect relevant information, to resolve significant inconsistencies, or 
both. Sworn statements and unsworn declarations may be taken whenever 
appropriate.
    (d) Expanding the Reinvestigation: The reinvestigation may be 
expanded as necessary. As appropriate, interviews with anyone able to 
provide information or to resolve issues, including but not limited to 
cohabitants, relatives, psychiatrists, psychologists, other medical 
professionals, and law enforcement professionals may be conducted.

               Attachment D to Subpart B--Decision Tables

                                    Table 1.--Which Investigation to Request                                    
----------------------------------------------------------------------------------------------------------------
                                    And the person      Based on this    Then the investigation                 
   If the requirement is for       has this access      investigation          required is        Using standard
----------------------------------------------------------------------------------------------------------------
Confidental Secret; ``L''......  None..............  None..............  NACLC.................  A              
                                                     Out of date NACLC                                          
                                                      or SSBI.                                                  
                                 Conf, Sec; ``L''                                                               
Top Secret, SCI; ``Q''.........  None..............  None..............  SSBI..................  B              
                                 None; Conf, Sec;    Current or out of                                          
                                  ``L''.              date NACLC                                                
                                                     Out of date SSBI                                           
                                 TS, SCI; ``Q''....                      SSBI-PR...............  C              
----------------------------------------------------------------------------------------------------------------


                                     Table 2.--Reinvestigation Requirements                                     
----------------------------------------------------------------------------------------------------------------
                                                                     Type required if there has been a break in 
                                           And the age of the                        service of                 
      If the requirement is for             investigation is       ---------------------------------------------
                                                                          0-23 months         24 month's or more
----------------------------------------------------------------------------------------------------------------
Confidential........................  0 to 14 years. 11 mos.......  None (note 1)..........  NACLC              
                                      15 yrs. or more.............  NACLC..................                     
Secret; ``L''.......................  0 to 9 yrs 11 mos...........  None (note 1)..........                     
                                      10 yrs. or more.............  NACLC                                       
Top Secret, SCI; ``Q''..............  0 to 4 yrs. 11 mos..........  None (note 1)..........  SSBI               
                                      5 yrs or more...............  SSBI-PR................                     
----------------------------------------------------------------------------------------------------------------
Note: As a minimum, review an updated Standard Form 84 and applicable records. A reinvestigation (NACLC or SSBI-
  PR) is not required unless the review indicates the person may no longer satisfy the standards of Executive   
  Order 12968.                                                                                                  


[[Page 688]]



               Subpart C--Guidelines for Temporary Access



Sec. 147.28   Introduction.

    The following minimum investigative standards, implementing section 
3.3 of Executive Order 12968, Access to Classified Information, are 
established for all United States Government and military personnel, 
consultants, contractors, subcontractors, employees of contractors, 
licensees, certificate holders or grantees and their employees and other 
individuals who require access to classified information before the 
appropriate investigation can be completed and a final determination 
made.



Sec. 147.29   Temporary eligibility for access.

    Based on a justified need meeting the requirements of section 3.3 of 
Executive Order 12968, temporary eligibility for access may be granted 
before investigations are complete and favorably adjudicated, where 
official functions must be performed prior to completion of the 
investigation and adjudication process. The temporary eligibility will 
be valid until completion of the investigation and adjudication; 
however, the agency granting it may revoke it at any time based on 
unfavorable information identified in the course of the investigation.



Sec. 147.30   Temporary eligibility for access at the confidential and secret levels and temporary eligibility for ``L'' access authorization.

    As a minimum, such temporary eligibility requires completion of the 
Standard Form 86, including any applicable supporting documentation, 
favorable review of the form by the appropriate adjudicating authority, 
and submission of a request for an expedited National Agency Check with 
Local Agency Checks and Credit (NACLC).



Sec. 147.31   Temporary eligibility for access at the top secret levels and temporary eligibility for ``Q'' access authorization: For someone who is the subject 

          of a favorable investigation not meeting the investigative 
          standards for access at those levels.

    As a minimum, such temporary eligibility requires completion of the 
Standard Form 86, including any applicable supporting documentation, 
favorable review of the form by the appropriate adjudicating authority, 
and expedited submission of a request for a Single Scope Background 
Investigation (SSBI).



Sec. 147.32   Temporary eligibility for access at the top secret and SCI levels and temporary eligibility for ``Q'' access authorization: For someone who is not 

          the subject of a current, favorable personnel or personnel-
          security investigation of any kind.

    As a minimum, such temporary eligibility requires completion of the 
Standard Form 86, including any applicable supporting documentation, 
favorable review of the form by the appropriate adjudicating authority, 
immediate submission of a request for an expedited Single Scope 
Background Investigation (SSBI), and completion and favorable review by 
the appropriate adjudicating authority of relevant criminal history and 
investigative records of the Federal Bureau of Investigation and of 
information in the Security/Suitability Investigations Index (SII) and 
the Defense Clearance and Investigations Index (DCII).



Sec. 147.33   Additional requirements by agencies.

    Temporary eligibility for access must satisfy these minimum 
investigative standards, but agency heads may establish additional 
requirements based on the sensitivity of the particular, identified 
categories of classified information necessary to perform the lawful and 
authorized functions that are the basis for granting temporary 
eligibility for access. However, no additional requirements shall exceed 
the common standards for background investigations developed under 
section 3.2(b) of Executive Order 12968. Temporary eligibility for 
access is valid only at the agency granting it and at other agencies who 
expressly agree to accept it and acknowledge understanding of its 
investigative basis. It is further subject to limitations specified in 
sections 2.4(d) and 3.3 of Executive Order 12968, Access to Classified 
Information.

[[Page 689]]



PART 148--NATIONAL POLICY AND IMPLEMENTATION OF RECIPROCITY OF FACILITIES--Table of Contents




  Subpart A--National Policy on Reciprocity of Use and Inspections of 
                               Facilities

Sec.
148.1  Interagency reciprocal acceptance.
148.2  Classified programs.
148.3  Security review.
148.4  Policy documentation.
148.5  Identification of the security policy board.
148.6  Agency review.

Subpart B--Guidelines for the Implementation and Oversight of the Policy 
           on Reciprocity of Use and Inspections of Facilities

148.10  General.
148.11  Policy.
148.12  Definitions.
148.13  Responsibilities.
148.14  Procedures.

    Authority:  E.O. 12968 (60 FR 40245, 3 CFR 1995 Comp., p. 391.)

    Source: 63 FR 4580, Jan. 30, 1998, unless otherwise noted.



  Subpart A--National Policy on Reciprocity of Use and Inspections of 
                               Facilities



Sec. 148.1  Intergency reciprocal acceptance .

    Interagency reciprocal acceptance of security policies and 
procedures for approving, accrediting, and maintaining the secure 
posture of shared facilities will reduce aggregate costs, promote 
interoperability of agency security systems, preserve vitality of the 
U.S. industrial base, and advance national security objectives.



Sec. 148.2  Classified programs.

    Once a facility is authorized, approved, certified, or accredited, 
all U.S. Government organizations desiring to conduct classified 
programs at the facility at the same security level shall accept the 
authorization, approval, certification, or accreditation without change, 
enhancements, or upgrades. Executive Order, Safeguarding Directives, 
National Industrial Security Program Operating Manual (NISPOM), the 
NISPOM Supplement, the Director of Central Intelligence Directives, 
interagency agreements, successor documents, or other mutually agreed 
upon methods shall be the basis for such acceptance.



Sec. 148.3  Security review.

    After initial security authorization, approval, certification, or 
accreditation, subsequent security reviews shall normally be conducted 
no more frequently than annually.
    Additionally, such reviews shall be aperiodic or random, and be 
based upon risk management principles. Security reviews may be conducted 
``for cause'', to follow up on previous findings, or to accomplish 
close-out actions. Visits may be made to a facility to conduct security 
support actions, administrative inquiries, program reviews, and 
approvals as deemed appropriate by the cognizant security authority or 
agency.



Sec. 148.4  Policy documentation.

    Agency heads shall ensure that any policy documents their agency 
issues setting out facilities security policies and procedures 
incorporate the policy set out herein, and that such policies are 
reasonable, effective, efficient, and enable and promote interagency 
reciprocity.



Sec. 148.5  Idenfification of the security policy board.

    Agencies which authorize, approve, certify, or accredit facilities 
shall provide to the Security Policy Board Staff a points of contact 
list to include names and telephone numbers of personnel to be contacted 
for verification of authorized, approved, certified, or accredited 
facility status. The Security Policy Board Staff will publish a 
comprehensive directory of points of contact.



Sec. 148.6  Agency review.

    Agencies will continue to review and assess the potential value 
added to the process of co-use of facilities by development of 
electronic data retrieval across government. As this review continues, 
agencies creating or modifying facilities databases will do so in a 
manner which facilitates community data

[[Page 690]]

sharing, interest of national defense or foreign policy.



Subpart B--Guidelines for the Implementation and Oversight of the Policy 
           on Reciprocity of use and Inspections of Facilities



Sec. 148.10  General.

    (a) Redundant, overlapping, and duplicative policies and practices 
that govern the co-use of facilities for classified purposes have 
resulted in excessive protection and unnecessary expenditure of funds. 
Lack of reciprocity has also impeded achievement of national security 
objectives and adversely affected economic and technological interest.
    (b) Interagency reciprocal acceptance of security policies and 
procedures for approving, accrediting, and maintaining the secure 
posture of shared facilities will reduce the aggregate costs, promote 
interoperability of agency security systems, preserve the vitality of 
the U.S. industrial base, and advance national security objectives.
    (c) Agency heads, or their designee, are encouraged to periodically 
issue written affirmations in support of the policies and procedures 
prescribed herein and in the Security Policy Board (SPB) policy, 
entitled ``Reciprocity of Use and Inspections of Facilities.''
    (d) The policies and procedures prescribed herein shall be 
applicable to all agencies. This document does not supersede the 
authority of the Secretary of Defense under Executive Order 12829 (58 FR 
3479, 3 CFR 1993 Comp., p. 570); the Secretary of Energy or the Chairman 
of the Nuclear Regulatory Commission under the Atomic Energy Act of 
1954, as amended; the Secretary of State under the Omnibus Diplomatic 
Security and Anti-Terrorism Act of 1986; the Secretaries of the military 
departments and military department installation Commanders under the 
Internal Security Act of 1950; the Director of Central Intelligence 
under the National Security Act of 1947, as amended, or Executive Order 
12333; the Director of the Information Security Oversight Office under 
Executive Order 12829 or Executive Order 12958 (60 FR 19825, 3 CFR 1995 
Comp., p. 333); or substantially similar authority instruments assigned 
to any other agency head.



Sec. 148.11   Policy.

    (a) Agency heads, or their designee, shall ensure that security 
policies and procedures for which they are responsible are reasonable, 
effective, and efficient, and that those policies and procedures enable 
and promote interagency reciprocity.
    (b) To the extent reasonable and practical, and consistent with US 
law, Presidential decree, and bilateral and international obligations of 
the United States, the security requirements, restrictions, and 
safeguards applicable to industry shall be equivalent to those 
applicable within the Executive Branch of government.
    (c) Once a facility is authorized approved, certified, or 
accredited, all government organizations desiring to conduct classified 
programs at the facility at the same security level shall accept the 
authorization, approval, certification, or accreditation without change, 
enhancements, or upgrades.



Sec. 148.12   Definitions.

    Agency. Any ``executive agency,'' as defined in 5 U.S.C. 105; any 
``Military department'' as defined in 5 U.S.C. 102; and any other entity 
within the Executive Branch that comes into possession of classified 
information.
    Classified Information. All information that requires protection 
under Executive Order 12958, or any of its antecedent orders, and the 
Atomic Energy Act of 1954, as amended.
    Cognizant Security Agency (CSA). Those agencies that have been 
authorized by Executive Order 12829 to establish an industrial security 
program for the purpose of safeguarding classified information disclosed 
or released to industry.
    Cognizant Security Office (CSO). The office or offices delegated by 
the head of a CSA to administer industrial security in a contractor's 
facility on behalf of the CSA.

[[Page 691]]

    Facility. An activity of a government agency or cleared contractor 
authorized by appropriate authority to conduct classified operations or 
to perform classified work.
    Industry. Contractors, licensees, grantees, and certificate holders 
obligated by contract or other written agreement to protect classified 
information under the National Industrial Security Program.
    National Security. The national defense and foreign relations of the 
United States.
    Senior Agency Official. Those officials, pursuant to Executive Order 
12958, designated by the agency head who are assigned the responsibility 
to direct and administer the agency's information security program.



Sec. 148.13  Responsibilities.

    (a) Each Senior Agency Official shall ensure that adequate 
reciprocity provisions are incorporated within his or her regulatory 
issuances that prescribe agency safeguards for protecting classified 
information.
    (b) Each Senior Agency Official shall develop, implement, and 
oversee a program that ensures agency personnel adhere to the policies 
and procedures prescribed herein and the reciprocity provisions of the 
National Industrial Security Program Operating Manual (NISPOM).
    (c) Each Senior Agency Official must ensure that implementation 
encourages reporting of instances of non-compliance, without fear of 
reprisal, and each reported instance is aggressively acted upon.
    (d) The Director, Information Security Oversight Office (ISOO), 
consistent with his assigned responsibilities under Executive Order 
12829, serves as the central point of contact within Government to 
consider and take action on complaints and suggestions from industry 
concerning alleged violations of the reciprocity provisions of the 
NISPOM.
    (e) The Director, Security Policy Board Staff (D/SPBS) or his/her 
designee, shall serve as the central point of contact within Government 
to receive from Federal Government employees alleged violations of the 
reciprocity provisions prescribed herein and the policy ``Reciprocity of 
Use and Inspections of Facilities'' of the SPB.



Sec. 148.14  Procedures.

    (a) Agencies that authorize, approve, certify, or accredit 
facilities shall provide to the SPB Staff a points of contact list to 
include names and telephone numbers of personnel to be contacted for 
verification of the status of facilities. The SPB Staff will publish a 
comprehensive directory of agency points of contact.
    (b) After initial security authorization, approval, certification, 
or accreditation, subsequent reviews shall normally be conducted no more 
frequently than annually. Additionally, such reviews shall be aperiodic 
or random, and be based upon risk-management principles. Security 
Reviews may be conducted ``for cause'', to follow up on previous 
findings, or to accomplish close-out actions.
    (c) The procedures employed to maximize interagency reciprocity 
shall be based primarily upon existing organizational reporting 
channels. These channels should be used to address alleged departures 
from established reciprocity requirements and should resolve all, 
including the most egregious instances of non-compliance.
    (d) Two complementary mechanisms are hereby established to augment 
existing organizational channels: (1) An accessible and responsive venue 
for reporting and resolving complaints/reported instances of non-
compliance. Government and industry reporting channels shall be as 
follows:
    (1) Governnment. (A) Agency employees are encouraged to bring 
suspected departures from applicable reciprocity requirements to the 
attention of the appropriate security authority in accordance with 
established agency procedures.
    (B) Should the matter remain unresolved, the complainant (employee, 
Security Officer, Special Security Officer, or similar official) is 
encouraged to report the matter formally to the Senior Agency Official 
for resolution.
    (C) Should the Senior Agency Official response be determined 
inadequate by the complainant, the matter should be reported formally to 
the Director, Security Policy Board Staff (D/SPBS).

[[Page 692]]

The D/SPBS, may revisit the matter with the Senior Agency Official or 
refer the matter to the Security Policy Forum as deemed appropriate.
    (D) Should the matter remain unresolved, the Security Policy Forum 
may consider referral to the SPB, the agency head, or the National 
Security Council as deemed appropriate.
    (ii) Industry. (A) Contractor employees are encouraged to bring 
suspected departures from the reciprocity provisions of the NISPOM to 
the attention to their Facility Security Officer (FSO) or Contractor 
Special Security Officer (CSSO), as appropriate, for resolution.
    (B) Should the matter remain unresolved, the complainant (employee, 
FSO, or CSSO) is encouraged to report the matter formally to the 
Cognizant Security Office (CSO) for resolution.
    (C) Should the CSO responses be determined inadequate by the 
complainant, the matter should be reported formally to the Senior Agency 
Official within the Cognizant Security Agency (CSA) for resolution.
    (D) Should the Senior Agency Official response be determined 
inadequately by the complainant, the matter should be reported formally 
to the Director, information Security Oversight Office (ISOO) for 
resolution.
    (E) The Director, ISOO, may revisit the matter with the Senior 
Agency Official or refer the matter to the agency head or the National 
Security Council as deemed appropriate.
    (2) An annual survey administered to a representative sampling of 
agency and private sector facilities to assess overall effectiveness of 
agency adherence to applicable reciprocity requirements.
    (i) In coordination with the D/SPBS, the Director, ISOO, as Chairman 
of the NISP Policy Advisory Committee (NISPPAC), shall develop and 
administer an annual survey to a representative number of cleared 
contractor activities/employees to assess the effectiveness of 
interagency reciprocity implementation. Administration of the survey 
shall be coordinated fully with each affected Senior Agency Official.
    (ii) In coordination with the NISPPAC, the D/SPBS shall develop and 
administer an annual survey to a representative number of agency 
activities/personnel to assess the effectiveness of interagency 
reciprocity implementation. Administration of the survey shall be 
coordinated fully with each affected Senior Agency Official.
    (iii) The goal of annual surveys should not be punitive but 
educational. All agencies and departments have participated in the 
crafting of these facilities policies, therefore, non-compliance is a 
matter of internal education and direction.
    (e) Agencies will continue to review and assess the potential value 
added to the process of co-use of facilities by development of 
electronic data retrieval across government.



PART 149--POLICY ON TECHNICAL SURVEILLANCE COUNTERMEASURES--Table of Contents




Sec.
149.1  Policy.
149.2  Responsibilities.
149.3  Definitions.

    Authority:  E.O. 12968 (60 FR 40245, 3 CFR 1995 Comp., p. 391.)

    Source: 63 FR 4583, Jan. 30, 1998, unless otherwise noted.



Sec. 149.1  Policy.

    (a) Heads of federal departments and agencies which process, 
discuss, and/or store classified national security information, 
restricted data, and sensitive but unclassified information, shall, in 
response to specific threat data and based on risk management 
principles, determine the need for Technical Surveillance 
Countermeasures (TSCM).
    To obtain maximum effectiveness by the most economical means in the 
various TSCM programs, departments and agencies shall exchange technical 
information freely; coordinate programs; practice reciprocity; and 
participate in consolidated programs, when appropriate.



Sec. 149.2  Responsibilities.

    (a) Heads of U.S. Government departments and agencies which plan, 
implement, and manage TSCM programs shall:
    (1) Provide TSCM support consisting of procedures and 
countermeasures determined to be appropriate for the facility, 
consistent with risk management principles.

[[Page 693]]

    (2) Report to the Security Policy Board, attention: Chair, 
Facilities Protection Committee (FPC), for appropriate dissemination, 
all-source intelligence that concerns technical surveillance threats, 
devices, techniques, and unreported hazards, regardless of the source or 
target, domestic or foreign.
    (3) Train a professional cadre of personnel in TSCM techniques.
    (4) Ensure that the FPC and Training and Professional Development 
Committee are kept apprised of their TSCM program activities as well as 
training and research and development requirements.
    (5) Assist other departments and agencies, in accordance with 
federal law, with TSCM services of common concern.
    (6) Coordinate, through the FPC, proposed foreign disclosure of TSCM 
equipment and techniques.
    (b) The FPC shall advise and assist the Security Policy Board in the 
development and review of TSCM policy, including guidelines, procedures, 
and instructions. The FPC shall:
    (1) Coordinate TSCM professional training, research, development, 
test, and evaluation programs.
    (2) Promote and foster joint procurement of TSCM equipment.
    (3) Evaluate the impact on the national security of foreign 
disclosure of TSCM equipment or techniques and recommend policy changes 
as needed.
    (4) Develop guidance for use in obtaining intelligence information 
on the plans, capabilities and actions of organizations hostile to the 
U.S. Government concerning technical penetrations and countermeasures 
against them.
    (5) Biennially, review, update and disseminate the national strategy 
for TSCM.



Sec. 149.3  Definitions.

    Classified National Security Information (CNSI). Information that 
has been determined pursuant to Executive Order 12958 (60 FR 19825, 3 
CFR 1995 Comp., p. 333) or any predecessor order to require protection 
against unauthorized disclosure and is marked to indicate its classified 
status when in documentary form.
    Restricted Data (RD). All data concerning design, manufacture or 
utilization of atomic weapons; the production of special nuclear 
material; or the use of special nuclear material in the production of 
energy, but shall not include data declassified or removed from the RD 
category pursuant to section 102 of the Atomic Energy Act of 1954, as 
amended.
    Sensitive but Unclassified. Any information, the loss, misuse, or 
unauthorized access to or modification of which could adversely affect 
the national interest or the conduct of federal programs, or the privacy 
to which individuals are entitled under 5 U.S.C. 552a, but which has not 
been specifically authorized under criteria established by an Executive 
Order or an Act of Congress to be kept secret in the interest of 
national defense or foreign policy.
    Technical Surveillance Countermeasures (TSCM). Techniques and 
measures to detect and nullify a wide variety of technologies that are 
used to obtain unauthorized access to classified national security 
information, restricted data, and/or sensitive but unclassified 
information.

[[Page 694]]



        SUBCHAPTER D--REGULATIONS PERTAINING TO MILITARY JUSTICE





PART 150--COURTS OF CRIMINAL APPEALS RULES OF PRACTICE AND PROCEDURE--Table of Contents




Sec.
150.1  Name and seal.
150.2  Jurisdiction.
150.3  Scope of review.
150.4  Quorum.
150.5  Place for filing papers.
150.6  Signing of papers.
150.7  Computation of time.
150.8  Qualification of counsel.
150.9  Conduct of counsel.
150.10  Request for appellate defense counsel.
150.11  Assignment of counsel.
150.12  Retention of civilian counsel.
150.13  Notice of appearance of counsel.
150.14  Waiver or withdrawal of appellate review.
150.15  Assignments of error and briefs.
150.16  Oral arguments.
150.17  En banc proceedings.
150.18  Orders and decisions of the Court.
150.19  Reconsideration.
150.20  Petitions for extraordinary relief, answer, and reply.
150.21  Appeals by the United States.
150.22  Petitions for new trial.
150.23  Motions.
150.24  Continuances and interlocutory matters.
150.25  Suspension of rules.
150.26  Internal rules.
150.27  Recording, photographing, broadcasting, or telecasting of 
          hearings.
150.28  Amendments.

Appendix A to Part 150--Format for Direction for Review in a Court of 
          Criminal Appeals
Appendix B to Part 150--Format for Assignment of Errors and Brief on 
          Behalf of Accused (Sec. 150.15)

    Authority: Article 66(f), Uniform Code of Military Justice (10 
U.S.C. Sec. 866(f) (1994)).

    Source: 62 FR 2017, Jan. 15, 1997, unless otherwise noted.



Sec. 150.1  Name and seal.

    (a) The titles of the Courts of Criminal Appeals of the respective 
services are:
    (1) ``United States Army Court of Criminal Appeals.''
    (2) ``United States Navy-Marine Corps Court of Criminal Appeals.''
    (3) ``United States Air Force Court of Criminal Appeals.''
    (4) ``United States Coast Guard Court of Criminal Appeals.''
    (b) Each Court is authorized a seal in the discretion of the Judge 
Advocate General concerned. The design of such seal shall include the 
title of the Court.



Sec. 150.2  Jurisdiction.

    (a) The jurisdiction of the Court is as follows:
    (1) Review under Article 66. All cases of trial by court-martial in 
which the sentence as approved extends to:
    (i) Death; or
    (ii) Dismissal of a commissioned officer, cadet or midshipman, 
dishonorable or bad-conduct discharge, or confinement for 1 year or 
longer; and in which the accused has not waived or withdrawn appellate 
review.
    (2) Review upon direction of the Judge Advocate General under 
Article 69. All cases of trial by court-martial in which there has been 
a finding of guilty and a sentence:
    (i) For which Article 66 does not otherwise provide appellate 
review, and
    (ii) Which the Judge Advocate General forwards to the Court for 
review pursuant to Article 69(d), and
    (iii) In which the accused has not waived or withdrawn appellate 
review.
    (3) Review under Article 62. All cases of trial by court-martial in 
which a punitive discharge may be adjudged and a military judge 
presides, and in which the government appeals an order or ruling of the 
military judge that terminates the proceedings with respect to a charge 
or specification or excludes evidence that is substantial proof of a 
fact material to the proceedings, or directs the disclosure of 
classified information, imposes sanctions for nondisclosure of 
classified information, or refuses to issue or enforce a protective 
order sought by the United States to prevent the disclosure of 
classified information.
    (4) Review under Article 73. All petitions for a new trial in cases 
of trial by court-martial which are referred to the Court by the Judge 
Advocate General.

[[Page 695]]

    (b) Extraordinary writs. The Court may, in its discretion, entertain 
petitions for extraordinary relief including, but not limited to, writs 
of mandamus, writs of prohibition, writs of habeas corpus, and writs of 
error coram nobis.
    (c) Effect of rules on jurisdiction. Nothing in this part shall be 
construed to extend or limit the jurisdiction of the Courts of Criminal 
Appeals as established by law.



Sec. 150.3  Scope of review.

    In cases referred to it for review pursuant to Article 66, the Court 
may act only with respect to the findings and sentence as approved by 
the convening authority. In reviewing a case or action under Article 
69(d) or in determining an appeal under Article 62, the Court may act 
only with respect to matters of law. The Court may, in addition, review 
such other matters and take such other action as it determines to be 
proper under substantive law.e



Sec. 150.4  Quorum.

    (a) In panel. When sitting in panel, a majority of the judges 
assigned to that panel constitutes a quorum for the purpose of hearing 
or determining any matter referred to the panel. The determination of 
any matter referred to the panel shall be according to the opinion of a 
majority of the judges participating in the decision. However, any judge 
present for duty may issue all necessary orders concerning any 
proceedings pending on panel and any judge present for duty, or a clerk 
of court or commissioner to whom the Court has delegated authority, may 
act on uncontested motions, provided such action does not finally 
dispose of a petition, appeal, or case before the Court.
    (b) En banc. When sitting as a whole, a majority of the judges of 
the Court constitutes a quorum for the purpose of hearing and 
determining any matter before the Court. The determination of any matter 
before the Court shall be according to the opinion of a majority of the 
judge participating in the decision. In the absence of a quorum, any 
judge present for duty may issue all necessary orders concerning any 
proceedings pending in the Court preparatory to hearing or decision 
thereof.



Sec. 150.5  Place for filing papers.

    When the filing of a notice of appearance, brief, or other paper in 
the office of a Judge Advocate General is required by this part, such 
papers shall be filed in the office of the Judge Advocate General of the 
appropriate armed force or in such other place as the Judge Advocate 
General or rule promulgated pursuant to Sec. 150.26 may designate. If 
transmitted by mail or other means, they are not filed until received in 
such office.



Sec. 150.6  Signing of papers.

    All formal papers shall be signed and shall show, typewritten or 
printed, the signer's name, address, military grade (if any), and the 
capacity in which the paper is signed. Such signature constitutes a 
certification that the statements made therein are true and correct to 
the best of the knowledge, information, and belief of the persons 
signing the paper and that the paper is filed in good faith and not for 
purposes of unnecessary delay.



Sec. 150.7  Computation of time.

    In computing any period of time prescribed or allowed by this part, 
by order of the Court, or by any applicable statute, the day of the act, 
event or default after which the designated period of time begins to run 
is not to be included. The last day of the period so computed is to be 
included, unless it is a Saturday, Sunday, or legal holiday, or, when 
the act to be done is the filing of a paper in court, a day on which the 
office of the Clerk of the Court is closed due to weather or other 
conditions or by order of the Chief Judge, in which event the period 
runs until the end of the next day which is neither a Saturday, Sunday, 
nor a holiday.



Sec. 150.8  Qualification of counsel.

    (a) All counsel. Counsel in any case before the Court shall be a 
member in good standing of the bar of a Federal Court, the highest court 
of a State or another recognized bar.
    (b) Military counsel. Assigned appellate defense and appellate 
government counsel shall, in addition, be qualified in accordance with 
Articles 27(b)(1) and

[[Page 696]]

70(a), Uniform Code of Military Justice.
    (c) Admission. Each Court may license counsel to appear before it. 
Otherwise, upon entering an appearance, counsel shall be deemed admitted 
pro hac vice, subject to filing a certificate setting forth required 
qualifications if directed by the Court.
    (d) Suspension. No counsel may appear in any proceeding before the 
Court while suspended from practice by the Judge Advocate General of the 
service concerned.



Sec. 150.9  Conduct of counsel.

    The conduct of counsel appearing before the Court shall be in 
accordance with rules of conduct prescribed pursuant to Rule for Courts-
Martial 109 by the Judge Advocate General of the service concerned. 
However, the Court may exercise its inherent power to regulate counsel 
appearing before it, including the power to remove counsel from a 
particular case for misconduct in relation to that case. Conduct deemed 
by the Court to warrant consideration of suspension from practice or 
other professional discipline shall be reported by the Court to the 
Judge Advocate General concerned.



Sec. 150.10  Request for appellate defense counsel.

    An accused may be represented before the Court by appellate counsel 
detailed pursuant to Article 70(a) or by civilian counsel provided by 
the accused, or both. An accused who does not waive appellate review 
pursuant to Rule for Courts-Martial 1110 shall, within 10 days after 
service of a copy of the convening authority's action under Rule for 
Courts-Martial 1107(h), forward to the convening authority or the Judge 
Advocate General:
    (a) A request for representation by military appellate defense 
counsel, or
    (b) Notice that civilian counsel has been retained or that action 
has been taken to retain civilian counsel (must include name and address 
of civilian counsel), or
    (c) Both a request for representation by military appellate defense 
counsel under paragraph (a) for this section and notice regarding 
civilian counsel under paragraph (b) of this section, or
    (d) A waiver of representation by counsel.



Sec. 150.11  Assignment of counsel.

    (a) When a record of trial is referred to the court--
    (1) If the accused has requested representation by appellate defense 
counsel, pursuant to Article 70(c)(1), counsel detailed pursuant to 
Article 70(a) will be assigned to represented the accused; or
    (2) If the accused gives notice that he or she has retained or has 
taken action to retain civilian counsel, appellate defense counsel shall 
be assigned to represent the interests of the accused pending appearance 
of civilian counsel. Assigned defense counsel will continue to assist 
after appearance by civilian counsel unless excused by the accused; or
    (3) If the accused has neither requested appellate counsel nor given 
notice of action to retain civilian counsel, but has not waived 
representation by counsel, appellate defense counsel will be assigned to 
represent the accused, subject to excusal by the accused or by direction 
of the Court.
    (b) In any case--
    (1) The Court may request counsel when counsel have not been 
assigned.
    (2) Pursuant to Article 70(c)(2), and subject to paragraph (a)(2) of 
this section, appellate defense counsel will represent the accused when 
the United States is represented by counsel before the Court.



Sec. 150.12  Retention of civilian counsel.

    When civilian counsel represents an accused before the Court, the 
Court will notify counsel when the record of trial is received. If both 
civilian and assigned appellate defense counsel represent the accused, 
the Court will regard civilian counsel as primary counsel unless 
notified otherwise. Ordinarily, civilian counsel will use the accused's 
copy of the record. Civilian counsel may reproduce, at no expense to the 
government, appellate defense counsel's copy of the record.

[[Page 697]]



Sec. 150.13  Notice of appearance of counsel.

    Military and civilian appellate counsel shall file a written notice 
of appearance with the Court. The filing of any pleading relative to a 
case which contains the signature of counsel constitutes notice of 
appearance of such counsel.



Sec. 150.14  Waiver or withdrawal of appellate review.

    Withdrawals from appellate review, and waivers of appellate review 
filed after expiration of the period prescribed by the Rule for Courts-
Martial 1110(f)(1), will be referred to the Court for consideration. At 
its discretion, the Court may require the filing of a motion for 
withdrawal, issue a show cause order, or grant the withdrawal without 
further action, as may be appropriate. The Court will return the record 
of trial, in a case withdrawn from appellate review, to the Judge 
Advocate General for action pursuant to Rule for Courts-Martial 1112.



Sec. 150.15  Assignments of error and briefs.

    (a) General provisions. Appellate counsel for the accused may file 
an assignment of error if any are to be alleged, setting forth 
separately each error asserted. The assignment of errors should be 
included in a brief for the accused in the format set forth in Appendix 
B to this part. An original of all assignments of error and briefs, and 
as many additional copies as shall be prescribed by the Court, shall be 
submitted. Briefs and assignments of errors shall be typed or printed, 
double-spaced on white paper, and securely fastened at the top. All 
references to matters contained in the record shall show record page 
numbers and any exhibit designations. A brief on behalf of the 
government shall be of like character as that prescribed for the 
accused.
    (b) Time for filing and number of briefs. Any brief for an accused 
shall be filed within 60 days after appellate counsel has been notified 
of the receipt of the record in the Office of the Judge Advocate 
General. If the Judge Advocate General has directed appellate government 
counsel to represent the United States, such counsel shall file an 
answer on behalf of the government within 30 days after any brief and 
assignment of errors has been filed on behalf of an accused. Appellate 
counsel for an accused may file a reply brief no later than 7 days after 
the filing of a response brief on behalf of the government. If no brief 
is filed on behalf of an accused, a brief on behalf of the government 
may be filed within 30 days after expiration of the time allowed for the 
filing of a brief on behalf of the accused.
    (c) Appendix. The brief of either party may include an appendix. If 
an unpublished opinion is cited in the brief, a copy shall be attached 
in an appendix. The appendix may also include extracts of statutes, 
rules, or regulations. A motion must be filed under Sec. 150.23, infra, 
to attach any other matter.



Sec. 150.16  Oral arguments.

    Oral arguments may be heard in the discretion of the Court upon 
motion by either party or when otherwise ordered by the Court. The 
motion of a party for oral argument shall be made no later than 7 days 
after the filing of an answer to an appellant's brief. Such motion shall 
identify the issue(s) upon which counsel seek argument. The Court may, 
on its own motion, identify the issue(s) upon which it wishes argument.



Sec. 150.17  En banc proceedings.

    (a)(1) A party may suggest the appropriateness of consideration or 
reconsideration by the Court as a whole. Such consideration or 
reconsideration ordinarily will not be ordered except:
    (i) When consideration by the full Court is necessary to secure or 
maintain uniformity of decision, or
    (ii) When the proceedings involve a question of exceptional 
importance, or
    (iii) When a sentence being reviewed pursuant to Article 66 extends 
to death.
    (2) In cases being reviewed pursuant to Article 66, a party's 
suggestion that a matter be considered initially by the Court as a whole 
must be filed with the Court within 7 days after the government files 
its answer to the assignment of errors, or the appellant files a reply 
under Sec. 150.15(b). In other proceedings, the suggestion must be filed 
with the party's initial petition or other initial

[[Page 698]]

pleading, or within 7 days after the response thereto is filed. A 
suggestion for reconsideration by the Court as a whole must be made 
within the time prescribed by Sec. 150.19 for filing a motion for 
reconsideration. No response to a suggestion for consideration or 
reconsideration by the Court as a whole may be filed unless the Court 
shall so order.
    (b) The suggestion of a party for consideration or reconsideration 
by the Court as a whole shall be transmitted to each judge of the Court 
who is present for duty, but a vote need not be taken to determine 
whether the cause shall be considered or reconsidered by the Court as a 
whole on such a suggestion made by a party unless a judge requests a 
vote.
    (c) A majority of the judges present for duty may order that any 
appeal or other proceeding be considered or reconsidered by the Court 
sitting as a whole. However, en banc reconsideration of an en banc 
decision will not be held unless at least one member of the original 
majority concurs in a vote for reconsideration.
    (d) This rule does not affect the power of the Court sua sponte to 
consider or reconsider any case sitting as a whole.



Sec. 150.18  Orders and decisions of the Court.

    The Court shall give notice of its orders and decisions by 
immediately serving them, when rendered, on appellate defense counsel, 
including civilian counsel, if any, government counsel and the Judge 
Advocate General, or designee, as appropriate.



Sec. 150.19  Reconsideration.

    (a) The Court may, in its discretion and on its own motion, enter an 
order announcing its intent to reconsider its decision or order in any 
case not later than 30 days after service of such decision or order on 
appellate defense counsel or on the appellant, if the appellant is not 
represented by counsel, provided a petition for grant of review or 
certificate for review has not been filed with the United States Court 
of Appeals for the Armed Forces, or a record of trial for review under 
Article 67(b) has not been received by that Court. No briefs or 
arguments shall be received unless the order so directs.
    (b) Provided a petition for grant of review or certificate for 
review has not been filed with the United States Court of Appeals for 
the Armed Forces, or a record of trial for review under Article 67(b) or 
writ appeal has not been received by the United States Court of Appeals 
for the Armed Forces, the Court may, in its discretion, reconsider its 
decision or order in any case upon motion filed either:
    (1) By appellate defense counsel within 30 days after receipt by 
counsel, or by the appellant if the appellant is not represented by 
counsel, of a decision or order, or
    (2) By appellate government counsel within 30 days after the 
decision or order is received by counsel.
    (c) A motion for reconsideration shall briefly and directly state 
the grounds for reconsideration, including a statement of facts showing 
jurisdiction in the Court. A reply to the motion for reconsideration 
will be received by the Court only if filed within 7 days of receipt of 
a copy of the motion. Oral arguments shall not be heard on a motion for 
reconsideration unless ordered by the Court. The original of the motion 
filed with the Court shall indicate the date of receipt of a copy of the 
same by opposing counsel.
    (d) The time limitations prescribed by this part shall not be 
extended under the authority of Secs. 150.24 or 150.25 beyond the 
expiration of the time for filing a petition for review or writ appeal 
with the United States Court of Appeals for the Armed Forces, except 
that the time for filing briefs by either party may be extended for good 
cause.



Sec. 150.20  Petitions for extraordinary relief, answer, and reply.

    (a) Petition for extraordinary relief. A petition for extraordinary 
relief in the number of copies required by the Court shall be 
accompanied by proof of service on each party respondent and will 
contain:
    (1) A previous history of the case including whether prior actions 
have been filed or are pending for the same relief in this or any other 
court and the disposition or status of such actions;

[[Page 699]]

    (2) A concise and objective statement of all facts relevant to the 
issue presented and of any pertinent opinion, order or ruling;
    (3) A copy of any pertinent parts of the record and all exhibits 
related to the petition if reasonably available and transmittable at or 
near the time the petition is filed;
    (4) A statement of the issue;
    (5) The specific relief sought;
    (6) Reasons for granting the writ;
    (7) The jurisdictional basis for relief sought and the reasons why 
the relief sought cannot be obtained during the ordinary course of 
appellate review;
    (8) If desired, a request for appointment of appellate counsel.
    (b) Format. The title of the petition shall include the name, 
military grade and service number of each named party and, where 
appropriate, the official military or civilian title of any named party 
acting in an official capacity as an officer or agent of the United 
States. When an accused has not been named as a party, the accused shall 
be identified by name, military grade and service number by the 
petitioner and shall be designated as the real party in interest.
    (c) Electronic petitions. The Court will docket petitions for 
extraordinary relief submitted by electronic means. A petition submitted 
by electronic means will conclude with the full name and address of 
petitioner's counsel, if any, and will state when the written petition 
and brief, when required, were forwarded to the Court and to all named 
respondents, and by what means they were forwarded.
    (d) Notice to the Judge Advocate General. Immediately upon receipt 
of any petition, the clerk shall forward a copy of the petition to the 
appropriate Judge Advocate General or designee.
    (e) Briefs. Each petition for extraordinary relief must be 
accompanied by a brief in support of the petition unless it is filed in 
propria persona. The Court may issue a show cause order in which event 
the respondent shall file an answer within 10 days of the receipt of the 
show cause order. The petitioner may file a reply to the answer within 7 
days of receipt of the answer.
    (f) Initial action by the Court. The Court may dismiss or deny the 
petition, order the respondent to show cause and file an answer within 
the time specified, or take whatever other action it deems appropriate.
    (g) Oral argument and final action. The Court may set the matter for 
oral argument. However, on the basis of the pleading alone, the Court 
may grant or deny the relief sought or make such other order in the case 
as the circumstances may require. This includes referring the matter to 
a special master, who need not be a military judge, to further 
investigate; to take evidence; and to make such recommendations as the 
Court deems appropriate.



Sec. 150.21  Appeals by the United States.

    (a) Restricted filing. Only a representative of the government 
designated by the Judge Advocate General of the respective service may 
file an appeal by the United States under Article 62.
    (b) Counsel. Counsel must be qualified and appointed, and give 
notice of appearance in accordance with this part and those of the Judge 
Advocate General concerned.
    (c) Form of appeal. The appeal must include those documents 
specified by Rule for Courts-Martial 908 and by applicable regulations 
of the Secretary concerned. A certificate of the Notice of Appeal 
described in Rule for Courts-Martial 908(b)(3) must be included. The 
certificate of service must reflect the date and time of the military 
judge's ruling or order from which the appeal is taken, and the time and 
date of service upon the military judge.
    (d) Time for filing. All procedural Rules of the Court shall apply 
except as noted in this paragraph:
    (1) The representative of the government designated by the Judge 
Advocate General shall decide whether to file the appeal with the Court. 
The trial counsel shall have 20 days from the date written notice to 
appeal is filed with the trial court to forward the appeal, including an 
original and two copies of the record of trial, to the representative of 
the government designated by the Judge Advocate General. The person 
designated by the Judge Advocate General shall promptly file the 
original record with the Clerk of the Court and forward one copy to

[[Page 700]]

opposing counsel. Appellate government counsel shall have 20 days (or 
more upon a showing of good cause made by motion for enlargement within 
the 20 days) from the date the record is filed with the Court to file 
the appeal with supporting brief with the Court. Should the government 
decide to withdraw the appeal after the record is received by the Court, 
appellate government counsel shall notify the Court in writing. 
Appellate brief(s) shall be prepared in the manner prescribed by 
Sec. 150.15.
    (2) Appellee shall prepare an answer in the manner prescribed by 
Sec. 150.15 and shall file such answer within 20 days after any filing 
of the government brief.
    (e) The government shall diligently prosecute all appeals by the 
United States and the Court will give such appeals priority over all 
other proceedings where practicable.



Sec. 150.22  Petitions for new trial.

    (a) Whether submitted to the Judge Advocate General by the accused 
in propria persona or by counsel for the accused, a petition for new 
trial submitted while the accused's case is undergoing review by a Court 
of Criminal Appeals shall be filed with an original and two copies and 
shall comply with the requirements of Rule for Courts-Martial 1210(c).
    (b) Upon receipt of a petition for new trial submitted by other than 
appellate defense counsel, the Court will notify all counsel of record 
of such fact.
    (c) A brief in support of a petition for new trial, unless expressly 
incorporated in or filed with the petition, will be filed substantially 
in the format specified by Sec. 150.15 no later than 30 days after the 
filing of the petition or receipt of the notice required by paragraph 
(b) of this section, whichever is later. An appellate's answer shall be 
filed no later than 30 days after the filing of an appellant's brief. A 
reply may be filed no later than 10 days after the filing of the 
appellee's answer.



Sec. 150.23  Motions.

    (a) Content. All motions, unless made during the course of a 
hearing, shall state with particularity the relief sought and the 
grounds therefor. Motions, pleading, and other papers desired to be 
filed with the Court may be combined in the same document, with the 
heading indicating, for example ``MOTION TO FILE (SUPPLEMENTAL 
ASSIGNMENT OF ERRORS) (CERTIFICATE OF CORRECTION) (SUPPLEMENTAL 
PLEADING)''; or ``ASSIGNMENT OF ERRORS AND MOTION TO FILE ATTACHED 
REPORT OF MEDICAL BOARD''.
    (b) Motions to attach documents. If a party desires to attach a 
statement of a person to the record for consideration by the Court on 
any matter, such statement shall be made either as an affidavit or as an 
unsworn declaration under penalty of perjury pursuant to 28 U.S.C. 1746. 
All documents containing language other than English shall have, 
attached, a certified English translation.
    (c) Opposition. Any opposition to a motion shall be filed within 7 
days after receipt by the opposing party of service of the motion.
    (d) Leave to file. Any pleading not authorized or required by this 
part, shall be accompanied by a motion for leave to file such pleading.
    (e) Oral argument. Oral argument shall not normally be permitted on 
motions.



Sec. 150.24  Continuances and interlocutory matters.

    Except as otherwise provided in Sec. 150.19(d), the Court, in its 
discretion, may extend any time limits prescribed and may dispose of any 
interlocutory or other appropriate matter not specifically covered by 
this part, in such manner as may appear to be required for a full, fair, 
and expeditious consideration of the case. See Sec. 150.4.



Sec. 150.25  Suspension of rules.

    For good cause shown, the Court acting as a whole or in panel may 
suspend the requirements or provisions of any of this part in a 
particular case on petition of a party or on its own motion and may 
order proceedings in accordance with its direction.



Sec. 150.26  Internal rules.

    The Chief Judge of the Court has the authority to prescribe internal 
rules for the Court.

[[Page 701]]



Sec. 150.27  Recording, photographing, broadcasting, or telecasting of hearings.

    The recording, photographing, broadcasting, or televising of any 
session of the Court or other activity relating thereto is prohibited 
unless specifically authorized by the Court.



Sec. 150.28  Amendments.

    Proposed amendments to this part may be submitted to the Chief Judge 
of any Court named in Sec. 150.1 or to a Judge Advocate General. Before 
acting on any proposed amendments not received from the Chief Judges, 
the Judge Advocates General shall refer them to the Chief Judges of the 
Courts for comment. The Chief Judges shall confer on any proposed 
changes, and shall report to the Judge Advocates General as to the 
suitability of proposed changes and their impact on the operation of the 
Courts and on appellate justice.

 Appendix A to Part 150--Format for Direction for Review in a Court of 
                            Criminal Appeals

     In the United States ____________\1\ Court of Criminal Appeals

 United States v._______________________________________________________
(Full typed name, rank, service, & service number of accused)
---------------------------------------------------------------------------

    \1\ Use ``Army,'' ``Navy-Marine Corps,'' ``Air Force,'' or ``Coast 
Guard,'' as applicable.
---------------------------------------------------------------------------

Direction for Review Case No. ________

Tried at (location), on (date(s)) before a (type in court-martial) 
appointed by (convening authority)

To the Honorable, the Judges of the United States ____________ Court of 
                            Criminal Appeals

    1. Pursuant to Article 69 of the Uniform Code of Military Justice, 
10 U.S.C. Sec. 869 (1994) and the Rules of Practice and Procedure for 
Courts of Criminal Appeals, Rule 2(b), the record of trial in the above-
entitled case is forwarded for review.
    2. The accused was found guilty by a (type of court-martial) of a 
violation of Article(s) ________ of the Uniform Code of Military 
Justice, and was sentenced to (include entire adjudged sentence) on 
(insert trial date). The convening authority (approved the sentence as 
adjudged) (approved the following findings and sentence: ____________). 
The officer exercising general court-martial jurisdiction (where 
applicable) took the following action: ____________. The case was 
received for review pursuant to Article 69 on (date).
    3. In review, pursuant to Uniform Code of Military Justice, Article 
66, it is requested that action be taken with respect to the following 
issues:

[set out issues here]
 _______________________________________________________________________
The Judge Advocate General
    Received a copy of the foregoing Direction for Review this 
____________ (date).
 _______________________________________________________________________
Appellate Government Counsel

 _______________________________________________________________________
Address and telephone number

 _______________________________________________________________________
Appellate Defense Counsel

 _______________________________________________________________________
Address and telephone number

  Appendix B to Part 150--Format for Assignment of Errors and Brief on 
                     Behalf of Accused (Sec. 150.15)

     In the United States ____________\2\ Court of Criminal Appeals

 United States v._______________________________________________________
(Full typed name, rank, service, & service number of accused), Appellant
---------------------------------------------------------------------------

    \2\ Use ``Army,'' ``Navy-Marine Corps,'' ``Air Force,'' or ``Coast 
Guard,'' as applicable.
---------------------------------------------------------------------------

Assignment of Errors and Brief on Behalf of Accused Case No. ________

Tried at (location), on (date(s)) before a (type of court-martial) 
appointed by (convening authority)

To the Honorable, the Judges of the United States ____________ Court of 
                            Criminal Appeals

                          Statement of the Case

    [Set forth a concise summary of the chronology of the case, 
including the general nature of the charges, the pleas of the accused, 
the findings and sentence at trial, the action by the convening 
authority, and any other pertinent information regarding the 
proceedings.]

                           Statement of Facts

    [Set forth those facts necessary to a disposition of the assigned 
errors, including specific page references and exhibit numbers. Answers 
may adopt appellant's or petitioner's statement of facts if there is no 
dispute, may state additional facts, or, if there is a dispute, may 
restate the facts as they appear from appellee's or respondent's 
viewpoint. The repetition of uncontroverted matters is not desired.]

[[Page 702]]

                           Errors and Argument

    [Set forth each error alleged in upper case letters, followed by 
separate arguments for each error. Arguments shall discuss briefly the 
question presented, citing and quoting such authorities as are deemed 
pertinent. Each argument shall include a statement of the applicable 
standard of review, and shall be followed by a specific prayer for the 
relief requested.]

                                Appendix

    [The brief of either party may include an appendix containing copies 
of unpublished opinions cited in the brief, and extracts of statutes, 
rules or regulations pertinent to the assigned errors.]

 _______________________________________________________________________
(Signature of counsel)

 _______________________________________________________________________
Name (and rank) of counsel, address and telephone number

                    Certificate of Filing and Service

    I certify that a copy of the foregoing was mailed or delivered to 
the Court and opposing counsel on (date).

 _______________________________________________________________________
Name (rank) (and signature)

 _______________________________________________________________________
Address and telephone number

____________________ (Date)



PART 151--STATUS OF FORCES POLICIES AND INFORMATION--Table of Contents




Sec.
151.1  Reissuance and purpose.
151.2  Applicability.
151.3  Policy.
151.4  Procedures and responsibilities.
151.5  Reports on the exercise of foreign criminal jurisdiction.
151.6  Resolution of ratification, with reservations, as agreed to by 
          the Senate on July 15, 1953.
151.7  Fair trial guarantees.

    Authority: 1 U.S.C. 133, 75 Stat. 517.

    Source: 45 FR 20465, Mar. 28, 1980, unless otherwise noted.



Sec. 151.1  Reissuance and purpose.

    This part is reissued to update established DoD policy and 
procedures on trial by foreign courts and treatment in foreign prisons 
of U.S. military personnel, nationals of the U.S. serving with, employed 
by, or accompaning the Armed Forces of the United States, and the 
dependents of both (hereafter referred to as U.S. personnel); and 
provides uniform reporting on the exercise of foreign criminal 
jurisdiction.



Sec. 151.2  Applicability.

    The provisions of this part apply to the Office of the Secretary of 
Defense, the Military Departments, and the Unified and Specified 
Commands. As used herein, the term ``Military Services'' refers to the 
Army, Navy, Air Force, and Marine Corps.



Sec. 151.3  Policy.

    It is the policy of the Department of Defense to protect, to the 
maximum extent possible, the rights of U.S. personnel who may be subject 
to criminal trial by foreign courts and imprisonment in foreign prisons.



Sec. 151.4  Procedures and responsibilities.

    (a) Application of Senate resolution on status of forces. This 
directive implements the Senate Resolution accompanying the Senate's 
consent to ratification of the North Atlantic Treaty (NATO) Status of 
Forces Agreement (Sec. 151.6). Although the Senate Resolution applies 
only to countries where the NATO Status of Forces Agreement is in 
effect, the same procedures for safeguarding the interests of U.S. 
personnel subject to foreign jurisdiction shall be applied insofar as 
practicable in overseas areas where U.S. forces are regularly stationed.
    (b) Orientation of personnel. The Military Services shall issue 
uniform regulations establishing an information and education policy on 
the laws and customs of the host country for personnel assigned to 
foreign areas.
    (c) Designated commanding officer. Formal invocation of the Senate 
Resolution procedure shall be the responsibility of a single military 
commander in each foreign country where United States forces are 
stationed. Attache personnel and other military personnel serving under 
a chief of a diplomatic mission shall not be considered U.S. forces in 
this part.
    (1) In the geographical areas for which a unified command exists, 
the commander shall designate within each country the ``Commanding 
Officer'' referred to in the Senate Resolution (Sec. 151.6).

[[Page 703]]

    (2) In areas where a unified command does not exist, a commanding 
officer in each country shall be nominated by the Military Departments. 
These recommendations shall be forwarded by the Judge Advocate General 
of the Army to the Secretary of Defense, for implementation through the 
Office of the Assistant Secretary of Defense (International Security 
Affairs). In designating the commanding officer to act for all the 
Military Departments, consideration must be given to the availability of 
legal officers and readiness of access to the seat of the foreign 
government. Such an officer may also be appointed by the Military 
Departments for countries where no U.S. forces are regularly stationed.
    (d) Country law studies. (1) For each foreign country where U.S. 
forces are subject to the criminal jurisdiction of foreign authorities, 
the designated commanding officer for such country shall make and 
maintain a current study of the laws and legal procedures in effect. 
Studies of the laws of other countries shall be made when directed. This 
study shall be a general examination of the substantive and procedural 
criminal law of the foreign country, and shall contain a comparison 
thereof with the procedural safeguards of a fair trial in the State 
courts of the United States.
    (2) Copies of these studies shall be forwarded by the designated 
commanding officer to each of the Judge Advocates General of the 
Military Services. Principal emphasis is to be placed on those 
safeguards that are of such a fundamental nature as to be guaranteed by 
the Constitution of the United States in all criminal trials in State 
courts of the United States. See Sec. 151.7 for enumeration of 
safeguards considered important. These country law studies shall be 
subject to a continuing review. Whenever there is a significant change 
in any country's criminal law, the change shall be forwarded by the 
designated commanding officer to each of the Military Service's Judge 
Advocates General.
    (e) Waivers of local jurisdiction--military personnel. (1) In cases 
where it appears probable that release of jurisdiction over U.S. 
military personnel will not be obtained and the accused may not obtain a 
fair trial, the commander exercising general court-martial jurisdiction 
over the accused shall communicate directly with the designated 
commanding officer, report the full facts of the case, and supply a 
recommendation.
    (2) The designated commanding officer shall determine, in the light 
of legal procedures in effect in that country, whether there is danger 
that the accused will not receive a fair trial. A trial shall not be 
considered unfair merely because it is not identical with trials held in 
the United States. Due regard, however, should be given to those United 
States trial rights listed in Sec. 151.7 that are relevant to the facts 
and circumstances of the trial in question.
    (3) If the designated commanding officer determines there is risk of 
an unfair trial, the commanding officer shall decide, after consultation 
with the chief of the diplomatic mission, whether to press a request for 
waiver of jurisdiction through diplomatic channels. If the commanding 
officer so decides, the recommendation shall be submitted through the 
unified commander, if any, and The Judge Advocate General of the 
accused's service, to the Office of the Secretary of Defense. The 
objective in each case is to see that U.S. military personnel obtain a 
fair trial in the receiving state under all circumstances.
    (f) Request to foreign authorities not to exercise their criminal 
jurisdiction over civilians and dependents. The following procedures 
shall be followed when it appears that foreign authorities may assume 
criminal jurisdiction over dependents of U.S. military personnel, 
civilian personnel, and their dependents:
    (1) When the designated commanding officer determines, after a 
careful consideration of all the circumstances, that suitable corrective 
action can be taken under existing administrative regulations, the 
commanding officer may request the local foreign authorities to refrain 
from exercising their criminal jurisdiction.
    (2) When it appears possible that release of jurisdiction will not 
be obtained and that the accused may not obtain a fair trial, the 
commander exercising general court-martial jurisdiction over the command 
in which such

[[Page 704]]

personnel are located shall communicate directly with the designated 
commanding officer, reporting the full facts of the case and supplying a 
recommendation.
    (3) The designated commanding officer shall then determine, in the 
light of legal procedures in effect in that country, whether there is 
danger that the accused will not receive a fair trial.
    (4) If it is determined that there is such danger, the designated 
commanding officer shall decide, after consultation with the chief of 
the diplomatic mission, whether a request should be submitted through 
diplomatic channels to foreign authorities seeking their assurances of a 
fair trial for the accused or, in appropriate circumstances, that they 
forego their right to exercise jurisdiction over the accused. If the 
designated commanding officer so decides, a recommendation shall be 
submitted through the unified commander, if any, and The Judge Advocate 
General of the Military Service concerned, to the Office of the 
Secretary of Defense.
    (g) Trial observers and trial observer report. (1) The designated 
commanding officer shall submit to the chief of the diplomatic mission a 
list of persons qualified to serve as U.S. observers at trials before 
courts of the receiving state. Nominees shall be lawyers, and shall be 
selected for maturity of judgment. The list shall include, where 
possible, representatives of all Military Services whose personnel are 
stationed in that country to enable the chief of the diplomatic mission 
to appoint an observer from the same Military Service as the accused. 
The requirement that nominees shall be lawyers may be waived in cases of 
minor offenses. Incidents that result in serious personal injury or that 
would normally result in sentences to confinement, whether or not 
suspended, shall not be considered minor offenses.
    (2) Trial observers shall attend and prepare formal reports in all 
cases of trials of U.S. personnel by foreign courts or tribunals, except 
for minor offenses. In cases of minor offenses, the observer shall 
attend the trial at the discretion of the designated commanding officer, 
but shall not be required to make a formal report. These reports need 
not be classified, but shall be treated as For Official Use Only 
documents. They shall be forwarded intact to the designated commanding 
officer through such agencies as the designated commanding officer may 
prescribe for transmission to the Judge Advocate General of the 
accused's service, with any comments of the appropriate Military Service 
commander. These reports shall be forwarded immediately upon the 
completion of the trial in the lower court, and shall not be delayed 
because of the possibility of a new trial, rehearing or appeal, reports 
of which shall be forwarded in the same manner. Copies shall also be 
forwarded to the unified commander, if any, and to the chief of the 
diplomatic mission.
    (3) The trial observer report shall contain a factual description or 
summary of the trial proceedings. It should enable an informed judgment 
to be made regarding: (i) Whether there was any failure to comply with 
the procedural safeguards secured by a pertinent status of forces 
agreement, and (ii) whether the accused received a fair trial under all 
the circumstances. The report shall specify the conclusions of the trial 
observer with respect to paragraph (g)(3)(i) of this section, and shall 
state in detail the basis for the conclusions. Unless the designated 
commanding officer directs otherwise, the report shall not contain 
conclusions with respect to paragraph (g)(3)(ii) of this section.
    (4) The designated commanding officer, upon receipt of a trial 
observer report, shall be responsible for determining: (i) Whether there 
was any failure to comply with the procedural safeguards secured by the 
pertinent status of forces agreement, and (ii) whether the accused 
received a fair trial under all the circumstances. Due regard should be 
given to those fair trial rights listed in Sec. 151.7 that are relevant 
to the particular facts and circumstances of the trial. However, a trial 
shall not be found unfair merely because it is not identical with trials 
held in the United States. If the designated commanding officer is of 
the opinion that the procedural safeguards specified in pertinent 
agreements were denied or that the trial was otherwise unjust, the 
commanding officer shall

[[Page 705]]

submit to the Office of the Secretary of Defense, through the unified 
commander and the Judge Advocate General of the Military Service 
concerned, a recommendation as to appropriate action to rectify the 
trial deficiencies and otherwise to protect the rights or interests of 
the accused. This shall include a statement of efforts taken or to be 
taken at the local level to protect the right of the accused. An 
information copy of the recommendation of the designated commanding 
officer shall be forwarded to the diplomatic or consular mission in the 
country concerned.
    (h) Counsel fees and related assistance. When the Secretary of the 
Military Department concerned or designee considers such action to be in 
the best interests of the United States, representation by civilian 
counsel and other assistance described under 10 U.S.C. 1037 may be 
furnished at Government expense to U.S. personnel tried in foreign 
countries.
    (i) Treatment of U.S. personnel confined in foreign penal 
institutions. (1) Insofar as practicable and subject to the laws and 
regulations of the country concerned and the provisions of any agreement 
therewith, the Department of Defense seeks to ensure that U.S. military 
personnel: (i) When in the custody of foreign authorities are fairly 
treated at all times and (ii) when confined (pretrial and post-trial) in 
foreign penal institutions are accorded the treatment and are entitled 
to all the rights, privileges, and protections of personnel confined in 
U.S. military facilities. Such rights, privileges, and protections are 
enunciated in present Military Service directives and regulations, and 
include, but are not limited to, legal assistance, visitation, medical 
attention, food, bedding, clothing, and other health and comfort 
supplies.
    (2) In consonance with this policy, U.S. military personnel confined 
in foreign penal institutions shall be visited at least every 30 days, 
at which time the conditions of confinement and other matters relating 
to their health and welfare shall be observed. The Military Services 
shall maintain, on a current basis, records of these visits as reports 
by their respective commands. Records of each visit should contain the 
following information:
    (i) Names of personnel conducting visit and date of visit.
    (ii) Name of each prisoner visited, serial number, and sentence.
    (iii) Name and location of prison.
    (iv) Treatment of the individual prisoner by prison warden and other 
personnel (include a short description of the rehabilitation program, if 
any, as applied to the prisoner).
    (v) Conditions existing in the prison, such as light, heat, 
sanitation, food, recreation, and religious activities.
    (vi) Change in status of prisoner, conditions of confinement or 
transfer to another institution.
    (vii) Condition of prisoner, physical and mental.
    (viii) Assistance given to prisoner, such as legal, medical, food, 
bedding, clothing, and health and comfort supplies.
    (ix) Action taken to have any deficiencies corrected, either by the 
local commander or through diplomatic or consular mission.
    (x) Designation of command responsible for prisoner's welfare and 
reporting of visits.
    (xi) Information as to discharge of a prisoner from the Military 
Service or termination of confinement.
    (3) When it is impracticable for the individual's commanding officer 
or representative to make visits, the designated commanding officer 
should be requested to arrange that another unit be responsible for such 
visits or to request that the appropriate diplomatic or consular mission 
assume responsibility therefor. When necessary, a medical officer should 
participate in the visits and record the results of medical 
examinations. If reasonable requests for permission to visit U.S. 
military personnel are arbitrarily denied, or it is ascertained that the 
individual is being mistreated or that the conditions of custody or 
confinement are substandard, the case should be referred to the 
diplomatic or consular mission concerned for appropriate action.
    (4) To the extent possible, military commanders should seek to 
conclude local arrangements whereby U.S. military authorities may be 
permitted to

[[Page 706]]

accord U.S. military personnel confined in foreign institutions the 
treatment, rights, privileges, and protection similar to those accorded 
such personnel confined in U.S. military facilities. The details of such 
arrangements should be submitted to the Judge Advocates General of the 
Military Services.
    (5) The military commanders shall make appropriate arrangements with 
foreign authorities whereby custody of individuals who are members of 
the Armed Forces of the United States shall, when they are released from 
confinement by foreign authorities, be turned over to U.S. military 
authorities. In appropriate cases, diplomatic or consular officers 
should be requested to keep the military authorities advised as to the 
anticipated date of the release of such persons by the foreign 
authorities.
    (6) In cooperation with the appropriate diplomatic or consular 
mission, military commanders shall, insofar as possible, ensure that 
dependents of U.S. military personnel, nationals of the United States 
serving with, employed by or accompanying the armed forces, and 
dependents of such nationals when in the custody of foreign authorities, 
or when confined (pretrial and post-trial) in foreign penal institutions 
receive the same treatment, rights, and support as would be extended to 
U.S. military personnel in comparable situations pursuant to the 
provisions of Sec. 151.4(i).
    (j) Discharge. U.S. military personnel confined in foreign prisons 
shall not be discharged from military service until the completion of 
the term of imprisonment and the return of the accused to the United 
States, except that in unusual cases such discharges may be accomplished 
upon prior authorization of the Secretary of the Military Department 
concerned.
    (k) Information policy. It is the basic policy of the Department of 
Defense that the general public and the Congress must be provided 
promptly with the maximum information concerning status of forces 
matters that are consistent with the national interest. Information 
shall be coordinated and furnished to the public and the Congress in 
accordance with established procedures, including DoD Directive 
5122.5,1 ``Assistant Secretary of Defense (Public Affairs),'' 
July 10, 1961, and parts 286 and 286a of this title.
---------------------------------------------------------------------------

    1 Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, PA 
19120, Attention: Code 301.
---------------------------------------------------------------------------



Sec. 151.5  Reports on the exercise of foreign criminal jurisdiction.

    The following reporting system, which has been implemented by the 
Military Departments, shall be continued after revision in accordance 
with the provisions herein. The Department of the Army is designated as 
executive agent within the Department of Defense for maintaining and 
collating information received on the basis of the reports submitted.
    (a) Annual reports. Annual reports, based on information furnished 
by the Military Departments covering the period December 1 through 
November 30 shall be prepared by the Department of the Army and 
submitted within such time as may be required but not later than 120 
days after the close of the reporting period. The reports shall be 
submitted in one reproducible copy to the Office of the General Counsel, 
DoD, in accordance with departmental implementation of this part. The 
reporting content of this requirement shall be as follows:
    (1) A statistical summary (DD Form 838) by country and type of 
offense of all cases involving U.S. personnel.
    (2) A report signed by the appropriate Military Service commander in 
each country for which DD Form 838 is prepared, concerning the 
commander's personal evaluation of the impact, if any, the local 
jurisdictional arrangements have had upon accomplishment of the mission 
and upon the discipline and morale of the forces, together with specific 
facts or other information, where appropriate, substantiating the 
commanders' opinion.
    (3) A report of the results of visits made and particular actions 
taken by appropriate military commanders under Sec. 151.4(i).
    (4) A report of the implementation of 10 U.S.C. 1037 showing by 
country and Military Service:

[[Page 707]]

    (i) The total number of cases in which funds were expended and
    (ii) Total expenditures in each of the following categories:
    (A) Payment of counsel fees,
    (B) Provision of bail,
    (C) Court costs and other expenses.
    (b) Quarterly reports. (1) Quarterly reports for the periods ending 
November 30, February 28, May 31, and August 31, consisting of lists of 
U.S. personnel imprisoned and released, shall be submitted, in 
accordance with departmental implementation of this part to the 
Department of the Army and by the Department of the Army, as executive 
agent, to the Director, Washington Headquarters Services, in four 
copies, on or before the 15th day following the report quarter as 
follows:
    (i) An alphabetical list of U.S. personnel who were imprisoned 
during the reporting period under sentence of confinement imposed by a 
foreign country, indicating the individual's home address, grade, and 
serial number (where applicable), offense of which found guilty, date 
and place of confinement, length of sentence to confinement imposed, and 
estimated date of release from confinement.
    (ii) A similar list of the names of prisoners released during the 
reporting period.
    (2) An information copy of these lists shall be furnished by the 
appropriate Military Service commander to the diplomatic or consular 
mission in the country concerned.
    (c) Other reports. (1) Each Military Department shall maintain, on a 
current basis, and submit monthly to the Director, Washington 
Headquarters Service, in four copies, a list of the most important cases 
pending, with a brief summary of the salient facts in each case. 
Selection of the cases to be included shall be left to the judgment of 
the appropriate officials of each Military Department. Instances of 
deficiency in the treatment or conditions of confinement in foreign 
penal institutions or arbitrary denial of permission to visit such 
personnel shall be considered important cases. Lists covering the 
previous month shall be submitted on the 6th day of the month following.
    (2) Important new cases or important developments in pending cases 
shall be reported informally and immediately to the Office of the 
General Counsel, DoD.



Sec. 151.6  Resolution of ratification, with reservations, as agreed to by the Senate on July 15, 1953.

    Resolved (two-thirds of the Senators present concurring therein), 
That the Senate advise and consent to the ratification of Executive T, 
Eighty-second Congress, second session, an agreement between the parties 
to the North Atlantic Treaty Regarding the Status of their Forces, 
signed at London on June 19, 1951. It is the understanding of the 
Senate, which understanding inheres in its advise and consent to the 
ratification of the Agreement, that nothing in the Agreement diminishes, 
abridges, or alters the right of the United States of America to 
safeguard its own security by excluding or removing persons whose 
presence in the United States is deemed prejudicial to its safety or 
security, and that no person whose presence in the United States is 
deemed prejudicial to its safety or security shall be permitted to enter 
or remain in the United States. In giving its advise and consent to 
ratification, it is the sense of the Senate that:
    (a) The criminal jurisdiction provisions of Article VII do not 
constitute a precedent for future agreements;
    (b) Where a person subject to the military jurisdiction of the 
United States is to be tried by the authorities of a receiving state, 
under the treaty the Commanding Officer of the armed forces of the 
United States in such state shall examine the laws of such state with 
particular reference to the procedural safeguards contained in the 
Constitution of the United States;
    (c) If, in the opinion of such Commanding Officer, under all the 
circumstances of the case, there is danger that the accused will not be 
protected becase of the absence or denial of constitutional rights the 
accused would enjoy in the United States, the Commanding Officer shall 
request the authorities of the receiving State to waive jurisdiction in 
accordance with the provisions of paragraph 3(c) of Article VII (which 
requires the receiving

[[Page 708]]

State to give ``sympathetic consideration'' to such request) and if such 
authorities refuse to waive jurisdiction, the commanding officer shall 
request the Department of State to press such request through diplomatic 
channels and notification shall be given by the Executive Branch to the 
Armed Services Committees of the Senate and House of Representatives;
    (d) A representative of the United States to be appointed by the 
Chief of Diplomatic Mission with the advice of the senior U.S. military 
representative in the receiving State will attend the trial of any such 
person by the authorities of a receiving State under the agreement, and 
any failure to comply with the provisions of paragraph 9 of Article VII 
of the Agreement shall be reported to the commanding officer of the 
Armed Forces of the United States in such State who shall then request 
the Department of State to take appropriate action to protect the rights 
of the accused, and notification shall be given by the Executive Branch 
to the Armed Services Committees of the Senate and House of 
Representatives.



Sec. 151.7  Fair trial guarantees.

    The following is a listing of ``fair trial'' safeguards or 
guarantees that are considered to be applicable to U.S. State court 
criminal proceedings, by virtue of the 14th Amendment as interpreted by 
the Supreme Court of the United States. The list is intended as a guide 
for the preparation of country law studies prescribed by Sec. 151.4 and 
for the determinations made by the designated commanding officer under 
Sec. 151.4(e) through Sec. 151.4(g). Designated commanding officers 
should also consider other factors that could result in a violation of 
due process of law in State court proceedings in the United States.
    (a) Criminal statute alleged to be violated must set forth specific 
and definite standards of guilt.
    (b) Accused shall not be prosecuted under an ex post facto law.
    (c) Accused shall not be punished by bills of attainder.
    (d) Accused must be informed of the nature and cause of the 
accusation and have a reasonable time to prepare a defense.
    (e) Accused is entitled to have the assistance of defense counsel.
    (f) Accused is entitled to be present at the trial.
    (g) Accused is entitled to be confronted with hostile witnesses.
    (h) Accused is entitled to have compulsory process for obtaining 
favorable witnesses.
    (i) Use of evidence against the accused obtained through 
unreasonable search or seizure or other illegal means is prohibited.
    (j) Burden of proof is on the Government in all criminal trials.
    (k) Accused is entitled to be tried by an impartial court.
    (l) Accused may not be compelled to be a witness against him or 
herself; and shall be protected from the use of a confession obtained by 
torture, threats, violence, or the exertion of any improper influence.
    (m) Accused shall not be subjected to cruel and unusual punishment.
    (n) Accused is entitled to be tried without unreasonable 
(prejudicial) delay.
    (o) Accused is entitled to a competent interpreter when the accused 
does not understand the language in which the trial is conducted and 
does not have counsel proficient in the language both of the court and 
of the accused.
    (p) Accused is entitled to a public trial.
    (q) Accused may not be subjected to consecutive trials for the same 
offense that are so vexatious as to indicate fundamental unfairness.



PART 152--REVIEW OF THE MANUAL FOR COURTS-MARTIAL--Table of Contents




Sec.
152.1  Purpose.
152.2  Applicability and scope.
152.3  Policy.
152.4  Procedures.
152.5  Responsibilities.
152.6  Information requirements.

    Authority: E.O. 12473; 10 U.S.C. 836; 10 U.S.C. 867(g).

    Source: 50 FR 6167, Feb. 14, 1985, unless otherwise noted.

[[Page 709]]



Sec. 152.1  Purpose.

    This part implements the requirement established by the President 
that Manual for Courts-Martial, United States 1984, Executive Order 
12473 reference be reviewed annually.



Sec. 152.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense, the 
Military Departments, and, by the agreement with the Secretary of 
Transportation, to the Coast Guard.
    (b) This part is intended only to improve the internal management of 
the Federal Government; it is not intended to create any right or 
benefit, substantive or procedural, enforceable at law by a party 
against the United States, its agencies, its officers, or any person.



Sec. 152.3  Policy.

    It is DoD policy to review annually the Manual for Courts-Martial, 
to ensure that the Manual fulfills its fundamental purpose as a 
comprehensive body of law governing military justice procedures and as a 
guide for lawyers and nonlawyers in the operation and application of 
such law.



Sec. 152.4  Procedures.

    (a) Annual review. (1) A draft of the annual review of the Manual 
for Courts-Martial required by the President under Executive Order 12473 
shall be prepared by the Joint Service Committee on Military Justice. 
The Joint Service Committee consists of one representative of each of 
the following: the Judge Advocate General of the Army; the Judge 
Advocate General of the Navy; the Judge Advocate General of the Air 
Force; the Director, Judge Advocate Division, Headquarters, U.S. Marine 
Corps; and the Chief Counsel, U.S. Coast Guard. In addition, the Court 
of Military Appeals shall be invited to provide a staff member to serve 
in a nonvoting capacity with the committee.
    (2) The Joint Service Committee on Military Justice shall review the 
Manual (including the Discussion and Appendices) in light of judicial 
and legislative developments in civilian practice to:
    (i) Ensure that the Manual, the Discussion, and the Appendices apply 
the principles of law and rules of evidence generally recognized in the 
trial of criminal cases in the U.S. District Courts to the extent 
practicable and to the extent that such principles and rules are not 
contrary to or inconsistent with the UCMJ. See Article 36, UCMJ (10 
U.S.C. 836 and 10 U.S.C. 867(g)). This includes the requirement that the 
Manual must be workable across the spectrum of circumstances in which 
courts-martial are conducted, including combat conditions.
    (ii) Ensure that the Manual, the Discussion, and the Appendices 
reflect current military practice and judicial precedent.
    (3) The Joint Service Committee shall send its draft review to the 
General Counsel not later than April 15, 1985, and February 1 of each 
year thereafter. A copy of the report shall be sent to the committee, 
established by Article 67(g), UCMJ (10 U.S.C. 836 and 10 U.S.C. 867(g)) 
which may submit comments on the draft review to the General Counsel.
    (4) The draft review shall set forth any specific recommendations 
for changes in the Manual, the Discussion, or the Appendices. If no 
changes are recommended, the draft review shall so state. If changes are 
recommended by the Joint Service Committee, the public notice procedures 
of paragraph (c) of this section, are applicable. If the Joint Service 
Committee determines that an aspect of civilian practice should be 
adopted, but recommends that the Manual should not be changed because 
the proposal would be contrary to or inconsistent with 10 U.S.C. 836 and 
867(g) the draft review should contain a legislative proposal. Minority 
reports, if any, shall be included.
    (5) Proposed changes to the Manual for Courts-Martial and proposed 
legislative changes that are recommended in the draft review are subject 
to the coordination requirements of DoD Directive 5500.1.
    (b) Other changes to the Manual for Courts-Martial. (1) Normally, 
changes to the Manual for Courts-Martial will be proposed as part of the 
annual review set forth in paragraph (a) of this

[[Page 710]]

section. However, when earlier implementation is required, proposed 
changes may be sent to the General Counsel for coordination under DoDD 
5000.19.
    (2) Proposed changes to the Manual for Courts-Martial under this 
section are subject to the public notice procedures of paragraph (c) of 
this section.
    (c) Public Notice. (1) Notice that the Department of Defense intends 
to recommend changes to the Manual for Courts-Martial shall be published 
in the Federal Register before submission of such changes to the 
President, unless the Secretary of Defense proposes that the President 
issue the change without such notice on the basis that notice and public 
procedure thereon is unnecessary or contrary to the sound administration 
of military justice.
    (2) The Joint Service Committee on Military Justice shall coordinate 
with the Office of General Counsel as to the timing and content of such 
notice.
    (3) The notice shall include a brief description of the matters 
contained in the proposed change, the time and place where a copy of the 
proposed change may be examined, and the procedure for obtaining a copy 
of the proposed change.
    (4) A period of not less than 75 days after publication of notice 
shall be allowed for public comment, but a shorter period may be 
prescribed when it is determined that a 75-day period is unnecessary or 
contrary to the sound administration of military justice.
    (5) Comments shall be submitted to the Joint Service Committee on 
Military Justice.



Sec. 152.5  Responsibilities.

    (a) The General Counsel is responsible for the administration of 
this part including approval of the annual review of the Manual for 
Courts-Martial, coordination of any proposed changes to the Manual for 
Courts-Martial under DoD Directive 5500.1, approval of any proposed 
changes to the Discussion and Appendices accompanying the Manual for 
Courts-Martial, and transmittal to the Congress of rules approved by the 
President. See Article 36, UCMJ (10 U.S.C. 836 and 10 U.S.C. 867 (g)).
    (b) The Judge Advocates General of the Military Departments; the 
Director, Judge Advocate Division, Headquarters, U.S. Marine Corps; and 
the Chief Counsel, U.S. Coast Guard are responsible for appointment of 
representatives to the Joint Service Committee on Military Justice.



Sec. 152.6  Information requirements.

    The reporting requirement prescribed in Sec. 152.4(a) is exempt from 
formal approval and licensing in accordance with subsection VII.C. of 
enclosure 3 to DoD Directive 5000.19.

[[Page 711]]



                         SUBCHAPTER E--SECURITY





PART 154--DEPARTMENT OF DEFENSE PERSONNEL SECURITY PROGRAM REGULATION--Table of Contents




                      Subpart A--General Provisions

Sec.
154.1  Purpose.
154.2  Applicability.
154.3  Definitions.

                           Subpart B--Policies

154.6  Standards for access to classified information or assignment to 
          sensitive duties.
154.7  Criteria for application of security standards.
154.8  Types and scope of personnel security investigations.
154.9  Authorized personnel security investigative agencies.
154.10  Limitations and restrictions.

        Subpart C--Personnel Security Investigative Requirements

154.13  Sensitive positions.
154.14  Civilian employment.
154.15  Military appointment, enlistment, and induction.
154.16  Security clearance.
154.17  Special access programs.
154.18  Certain positions not necessarily requiring access to classified 
          information.
154.19  Reinvestigation.
154.20  Authority to waive investigative requirements.

 Subpart D--Reciprocal Acceptance of Prior Investigations and Personnel 
                         Security Determinations

154.23  General.
154.24  Prior investigations conducted by DoD investigative 
          organizations.
154.25  Prior personnel security determinations made by DoD authorities.
154.26  Investigations conducted and clearances granted by other 
          agencies of the Federal government.

         Subpart E--Requesting Personnel Security Investigations

154.30  General.
154.31  Authorized requesters.
154.32  Criteria for requesting investigations.
154.33  Request procedures.
154.34  Priority requests.
154.35  Personal data provided by the subject of the investigation.

                         Subpart F--Adjudication

154.40  General.
154.41  Central adjudication.
154.42  Evaluation of personnel security information.
154.43  Adjudicative record.

            Subpart G--Issuing Clearance and Granting Access

154.47  General.
154.48  Issuing clearance.
154.49  Granting access.
154.50  Administrative withdrawal.

              Subpart H--Unfavorable Administrative Actions

154.55  Requirements.
154.56  Procedures.
154.57  Reinstatement of civilian employees.

             Subpart I--Continuing Security Responsibilities

154.60  Evaluating continued security eligibility.
154.61  Security education.

    Subpart J--Safeguarding Personnel Security Investigative Records

154.65  General.
154.66  Responsibilities.
154.67  Access restrictions.
154.68  Safeguarding procedures.
154.69  Records disposition.
154.70  Foreign source information.

                      Subpart K--Program Management

154.75  General.
154.76  Responsibilities.
154.77  Reporting requirements.
154.78  Inspections.

Appendix A to Part 154--Investigative Scope
Appendix B to Part 154--Request Procedures
Appendix C to Part 154--Tables for Requesting Investigations
Appendix D to Part 154--Reporting of Nonderogatory Cases
Appendix E to Part 154--Personnel Security Determination Authorities
Appendix F to Part 154--Guidelines for Conducting Prenomination Personal 
          Interviews
Appendix G to Part 154--[Reserved]
Appendix H to Part 154--Adjudication Policy
Appendix I to Part 154--Overseas Investigations

[[Page 712]]

Appendix J to Part 154--ADP Position Categories and Criteria for 
          Designating Positions

    Authority: E.O. 10450, 18 FR 2489, 3 CFR, 1949-1953 Comp., p. 936; 
E.O. 12356, 47 FR 14874 and 15557, 3 CFR, 1982 Comp., p. 166; E.O. 
10865, 25 FR 1583, 3 CFR, 1959-1963 Comp., p. 398; E.O. 12333, 46 FR 
59941, 3 CFR, 1981 Comp., p. 200.

    Source: 52 FR 11219, Apr. 8, 1987, unless otherwise noted.



                      Subpart A--General Provisions



Sec. 154.1  Purpose.

    (a) To establish policies and procedures to ensure that acceptance 
and retention of personnel in the Armed Forces, acceptance and retention 
of civilian employees in the Department of Defense (DoD), and granting 
members of the Armed Forces, DoD civilian employees, DoD contractors, 
and other affiliated persons access to classified information are 
clearly consistent with the interests of national security.
    (b) This part: (1) Establishes DoD personnel security policies and 
procedures;
    (2) Sets forth the standards, criteria and guidelines upon which 
personnel security determinations shall be based;
    (3) Prescribes the kinds and scopes of personnel security 
investigations required;
    (4) Details the evaluation and adverse action procedures by which 
personnel security determinations shall be made; and
    (5) Assigns overall program management responsibilities.



Sec. 154.2  Applicability.

    (a) This part implements the Department of Defense Personnel 
Security Program and takes precedence over all other departmental 
issuances affecting that program.
    (b) All provisions of this part apply to DoD civilian personnel, 
members of the Armed Forces, excluding the Coast Guard in peacetime, 
contractor personnel and other personnel who are affiliated with the 
Department of Defense except that the unfavorable administrative action 
procedures pertaining to contractor personnel requiring access to 
classified information are contained in DoD 5220.22-R and in 32 CFR part 
155.
    (c) The policies and procedures which govern the National Security 
Agency are prescribed by Public Laws 88-290 and 86-36, Executive Orders 
10450 and 12333, DoD Directive 5210.45\1\, Director of Central 
Intelligence Directive (DCID) 1/14\2\ and regulations of the National 
Security Agency.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
    \2\ Copies may be obtained, if needed from Central Intelligence 
Agency (CCISCMS/ICS), 1225 Ames Building, Washington, DC 20505.
---------------------------------------------------------------------------

    (d) Under combat conditions or other military exigencies, an 
authority in paragraph A, Appendix E, may waive such provisions of this 
part as the circumstances warrant.
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61024, Nov. 19, 1993]



Sec. 154.3  Definitions.

    (a) Access. The ability and opportunity to obtain knowledge of 
classified information. An individual, in fact, may have access to 
classified information by being in a place where such information is 
kept, if the security measures that are in force do not prevent him from 
gaining knowledge of such information.
    (b) Adverse action. A removal from employment, suspension from 
employment of more than 14 days, reduction in grade, reduction in pay, 
or furlough of 30 days or less.
    (c) Background Investigation (BI). A personnel security 
investigation consisting of both record reviews and interviews with 
sources of information as prescribed in paragraph 3, Appendix A, this 
part, covering the most recent 5 years of an individual's life or since 
the 18th birthday, whichever is shorter, provided that at least the last 
2 years are covered and that no investigation will be conducted prior to 
an individual's 16th birthday.
    (d) Classified information. Official information or material that 
requires protection in the interests of national security and that is 
classified for such purpose by appropriate classifying authority in 
accordance with the provisions of Executive Order 12356.

[[Page 713]]

    (e) Defense Clearance and Investigative Index (DCII). The DCII is 
the single, automated, central DoD repository which identifies 
investigations conducted by DoD investigative agencies, and personnel 
security determinations made by DoD adjudicative authorities.
    (f) DoD component. Includes the Office of the Secretary of Defense; 
the Military Departments; Chairman of the Joint Chiefs of Staff; 
Directors of Defense Agencies and the Unified and Specified Commands.
    (g) Entrance National Agency Check (ENTNAC). A personnel security 
investigation scoped and conducted in the same manner as a National 
Agency Check except that a technical fingerprint search of the files of 
the Federal Bureau of Investigation is not conducted.
    (h) Head of DoD component. The Secretary of Defense; the Secretaries 
of the Military Departments; the Chairman of Joint Chiefs of Staff; and 
the Commanders of Unified and Specified Commands; and the Directors of 
Defense Agencies.
    (i) Immigrant alien. Any alien lawfully admitted into the United 
States under an immigration visa for permanent residence.
    (j) Interim security clearance. A security clearance based on the 
completion of minimum investigative requirements, which is granted on a 
temporary basis, pending the completion of the full investigative 
requirements.
    (k) Limited access authorization. Authorization for access to 
Confidential or Secret information granted to non-US. citizens and 
immigrant aliens, which is limited to only that information necessary to 
the successful accomplishment of their assigned duties and based on a 
background investigation scoped for 10 years (paragraph 3, Appendix A).
    (l) Minor derogatory information. Information that, by itself, is 
not of sufficient importance or magnitude to justify an unfavorable 
administrative action in a personnel security determination.
    (m) National Agency check (NAC). A personnel security investigation 
consisting of a records review of certain national agencies as 
prescribed in paragraph 1, Appendix A, this part, including a technical 
fingerprint search of the files of the Federal Bureau of Investigation 
(FBI).
    (n) National Agency Check Plus Written Inquiries (NACI). A personnel 
security investigation conducted by the Office of Personnel Management, 
combining a NAC and written inquiries to law enforcement agencies, 
former employers and supervisors, references and schools.
    (o) National security. National security means the national defense 
and foreign relations of the United States.
    (p) Need-to-know. A determination made by a possessor of classified 
information that a prospective recipient, in the interest of national 
security, has a requirement for access to, knowledge, or possession of 
the classified information in order to perform tasks or services 
essential to the fulfillment of an official U.S. Government program. 
Knowledge, possession of, or access to, classified information shall not 
be afforded to any individual solely by virtue of the individual's 
office, position, or security clearance.
    (q) Periodic Reinvestigation (PR). An investigation conducted every 
five years for the purpose of updating a previously completed background 
investigation, special background investigation, single scope background 
investigation or PR on persons occupying positions referred to in 
Sec. 154.19. Investigative requirements are as prescribed in appendix A 
to part 154, section 5. The period of investigation will not normally 
exceed the most recent 5-year period.
    (r) Personnel Security Investigation (PSI). Any investigation 
required for the purpose of determining the eligibility of DoD military 
and civilian personnel, contractor employees, consultants, and other 
persons affiliated with the Department of Defense, for access to 
classified information, acceptance or retention in the Armed Forces, 
assignment or retention in sensitive duties, or other designated duties 
requiring such investigation. PSIs include investigations of 
affiliations with subversive organizations, suitability information, or 
hostage situations (see Sec. 154.9(d)) conducted for the purpose of 
making personnel security determinations. They also include 
investigations of allegations that arise subsequent to

[[Page 714]]

adjudicative action and require resolution to determine an individual's 
current eligibility for access to classified information or assignment 
or retention in a sensitive position.
    (s) Scope. The time period to be covered and the sources of 
information to be contacted during the prescribed course of a PSI.
    (t) Security clearance. A determination that a person is eligible 
under the standards of this part for access to classified information.
    (u) Senior Officer of the Intelligence Community (SOIC). The DoD 
Senior Officers of the Intelligence Community include: the Director, 
National Security Agency/Central Security Service; Director, Defense 
Intelligence Agency; Assistant Chief of Staff for Intelligence, U.S. 
Army; Assistant Chief of Staff for Intelligence, U.S. Air Force; and the 
Director of Naval Intelligence, U.S. Navy.
    (v) Sensitive position. Any position so designated within the 
Department of Defense, the occupant of which could bring about, by 
virtue of the nature of the position, a materially adverse effect on the 
national security. All civilian positions are either critical-sensitive, 
noncritical-sensitive, or nonsensitive as described in Sec. 154.13(b).
    (w) Significant derogatory information. Information that could, in 
itself, justify an unfavorable administrative action, or prompt an 
adjudicator to seek additional investigation or clarification.
    (x) Special access program. Any program imposing ``need-to-know'' or 
access controls beyond those normally provided for access to 
Confidential, Secret, or Top Secret information. Such a program may 
include, but not be limited to, special clearance, adjudication, 
investigative requirements, material dissemination restrictions, or 
special lists of persons determined to have a need-to-know.
    (y) Special Background Investigation (SBI). A personnel security 
investigation consisting of all of the components of a BI plus certain 
additional investigative requirements as prescribed in paragraph 4, 
Appendix B, this part. The period of investigation for an SBI is the 
last 15 years or since the 18th birthday, whichever is shorter, provided 
that the last 2 full years are covered and that no investigation will be 
conducted prior to an individual's 16th birthday.
    (z) Special Investigative Inquiry (SII). A supplemental personnel 
security investigation of limited scope conducted to prove or disprove 
relevant allegations that have arisen concerning a person upon whom a 
personnel security determination has been previously made and who, at 
the time of the allegation, holds a security clearance or otherwise 
occupies a position that requires a personnel security determination 
under the provisions of this part.
    (aa) Service. Honorable active duty (including attendance at the 
military academies), membership in ROTC Scholarship Program, Army and 
Air Force National Guard, Military Reserve Force (including active 
status and ready reserve), civilian employment in Government service, or 
civilian employment with a DoD contractor or as a consultant involving 
access under the DoD Industrial Security Program. Continuity of service 
is maintained with change from one status to another as long as there is 
no single break in service greater than 12 months.
    (bb) Unfavorable administrative action. Adverse action taken as the 
result of personnel security determinations and unfavorable personnel 
security determinations as defined in this part.
    (cc) Unfavorable personnel security determination. A denial or 
revocation of clearance for access to classified information; denial or 
revocation of access to classified information; denial or revocation of 
a Special Access authorization (including access to SCI); nonappointment 
to or nonselection for appointment to a sensitive position; 
nonappointment to or nonselection for any other position requiring a 
trustworthiness determination under this part; reassignment to a 
position of lesser sensitivity or to a nonsensitive position; and 
nonacceptance for or discharge from the Armed Forces when any of the 
foregoing actions are based on derogatory information of personnel 
security significance.
    (dd) United States Citizen (Native Born). A person born in one of 
the 50 United States, Puerto Rico, Guam,

[[Page 715]]

American Samoa, Northern Mariana Islands, U.S. Virgin Islands; or Panama 
Canal Zone (if the father or mother (or both) was or is, a citizen of 
the United States).
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61024, Nov. 19, 1993]



                           Subpart B--Policies



Sec. 154.6  Standards for access to classified information or assignment to sensitive duties.

    (a) General. Only U.S. citizens shall be granted a personnel 
security clearance, assigned to sensitive duties, or granted access to 
classified information unless an authority designated in Appendix E has 
determined that, based on all available information, there are 
compelling reasons in furtherance of the Department of Defense mission, 
including, special expertise, to assign an individual who is not a 
citizen to sensitive duties or grant a Limited Access Authorization to 
classified information. Non-U.S. citizens may be employed in the 
competitive service in sensitive civilian positions only when 
specifically approved by the Office of Personnel Management, pursuant to 
E.O. 11935. Exceptions to these requirements shall be permitted only for 
compelling national security reasons.
    (b) Clearance and sensitive position standard. The personnel 
security standard that must be applied to determine whether a person is 
eligible for access to classified information or assignment to sensitive 
duties is whether, based on all available information, the person's 
loyalty, reliability, and trustworthiness are such that entrusting the 
person with classified information or assigning the person to sensitive 
duties is clearly consistent with the interests of national security.
    (c) Military service standard. The personnel security standard that 
must be applied in determining whether a person is suitable under 
national security criteria for appointment, enlistment, induction, or 
retention in the Armed Forces is that, based on all available 
information, there is no reasonable basis for doubting the person's 
loyalty to the Government of the United States.



Sec. 154.7  Criteria for application of security standards.

    The ultimate decision in applying either of the security standards 
set forth in Sec. 154.6 (b) and (c) must be an overall common sense 
determination based upon all available facts. The criteria for 
determining eligibility for a clearance under the security standard 
shall include, but not be limited to the following:
    (a) Commission of any act of sabotage, espionage, treason, 
terrorism, anarchy, sedition, or attempts thereat or preparation 
therefor, or conspiring with or aiding or abetting another to commit or 
attempt to commit any such act.
    (b) Establishing or continuing a sympathetic association with a 
saboteur, spy, traitor, seditionist, anarchist, terrorist, 
revolutionist, or with an espionage or other secret agent or similar 
representative of a foreign nation whose interests may be inimical to 
the interests of the United States, or with any person who advocates the 
use of force or violence to overthrow the Government of the United 
States or to alter the form of Government of the United States by 
unconstitutional means.
    (c) Advocacy or use of force or violence to overthrow the Government 
of the United States or to alter the form of Government of the United 
States by unconstitutional means.
    (d) Knowing membership with the specific intent of furthering the 
aims of, or adherence to and active participation in any foreign or 
domestic organization, association, movement, group or combination of 
persons (hereafter referred to as organizations) which unlawfully 
advocates or practices the commission of acts of force or violence to 
prevent others from exercising their rights under the Constitution or 
laws of the U.S. or of any State or which seeks to overthrow the 
Government of the U.S. or any State or subdivision thereof by unlawful 
means.
    (e) Unauthorized disclosure to any person of classified information, 
or of other information, disclosure of which is prohibited by statute, 
Executive Order or regulation.

[[Page 716]]

    (f) Performing or attempting to perform one's duties, acceptance and 
active maintenance of dual citizenship, or other acts conducted in a 
manner which serve or which could be expected to serve the interests of 
another government in preference to the interests of the United States.
    (g) Disregard of public law, statutes, Executive Orders or 
regulations including violation of security regulations or practices.
    (h) Criminal or dishonest conduct.
    (i) Acts of omission or commission that indicate poor judgment, 
unreliability or untrustworthiness.
    (j) Any behavior or illness, including any mental condition, which, 
in the opinion of competent medical authority, may cause a defect in 
judgment or reliability with due regard to the transient or continuing 
effect of the illness and the medical findings in such case.
    (k) Vulnerability to coercion, influence, or pressure that may cause 
conduct contrary to the national interest. This may be
    (1) The presence of immediate family members or other persons to 
whom the applicant is bonded by affection or obligation in a nation (or 
areas under its domination) whose interests may be inimical to those of 
the United States, or
    (2) Any other circumstances that could cause the applicant to be 
vulnerable.
    (l) Excessive indebtedness, recurring financial difficulties, or 
unexplained affluence.
    (m) Habitual or episodic use of intoxicants to excess.
    (n) Illegal or improper use, possession, transfer, sale or addiction 
to any controlled or psychoactive substance, narcotic, cannabis or other 
dangerous drug.
    (o) Any knowing and willful falsification, coverup, concealment, 
misrepresentation, or omission of a material fact from any written or 
oral statement, document, form or other representation or device used by 
the Department of Defense or any other Federal agency.
    (p) Failing or refusing to answer or to authorize others to answer 
questions or provide information required by a congressional committee, 
court, or agency in the course of an official inquiry whenever such 
answers or information concern relevant and material matters pertinent 
to an evaluation of the individual's trustworthiness, reliability, and 
judgment.
    (q) Acts of sexual misconduct or perversion indicative of moral 
turpitude, poor judgment, or lack of regard for the laws of society.



Sec. 154.8  Types and scope of personnel security investigations.

    (a) General. The types of personnel security investigations 
authorized below vary in scope of investigative effort required to meet 
the purpose of the particular investigation. No other types are 
authorized. The scope of a PSI may be neither raised nor lowered without 
the approval of the Deputy Under Secretary of Defense for Policy.
    (b) National Agency Check. Essentially, a NAC is a records check of 
designated agencies of the Federal Government that maintain record 
systems containing information relevant to making a personnel security 
determination. An ENTNAC is a NAC (scope as outlined in paragraph 1, 
Appendix A) conducted on inductees and first-term enlistees, but lacking 
a technical fingerprint search. A NAC is also an integral part of each 
BI, SBI, and Periodic Reinvestigation (PR). Subpart C prescribes when an 
NAC is required.
    (c) National Agency Check plus written inquiries. The Office of 
Personnel Management (OPM) conducts a NAC plus Written Inquiries (NACIs) 
on civilian employees for all departments and agencies of the Federal 
Government, pursuant to E.O. 10450. NACIs are considered to meet the 
investigative requirements of this regulation for a nonsensitive or 
noncritical sensitive position and/or up to a Secret clearance and, in 
addition to the NAC, include coverage of law enforcement agencies, 
former employers and supervisors, references, and schools covering the 
last 5 years.
    (d) DoD National Agency check plus written inquiries. DIS will 
conduct a DNACI, consisting of the scope contained in paragraph 2, 
Appendix A, for DoD military and contractor personnel for access to 
Secret information. Subpart C prescribes when a DNACI is required.

[[Page 717]]

    (e) Background investigation. The BI is the principal type of 
investigation conducted when an individual requires Top Secret clearance 
or is to be assigned to a critical sensitive position. The BI normally 
covers a 5-year period and consists of a subject interview, NAC, LACs, 
credit checks, developed character references (3), employment records 
checks, employment references (3), and select scoping as required to 
resolve unfavorable or questionable information. (See paragraph 3, 
Appendix A). Subpart C prescribes when a BI is required.
    (f) Special background investigation. (1) An SBI is essentially a BI 
providing additional coverage both in period of time as well as sources 
of information, scoped in accordance with the provisions of DCID 1/14 
but without the personal interview. While the kind of coverage provided 
for by the SBI determines eligibility for access to SCI, DoD has adopted 
this coverage for certain other Special Access programs. Subpart C 
prescribes when an SBI is required.
    (2) The OPM, FBI, Central Intelligence Agency (CIA), Secret Service, 
and the Department of State conduct specially scoped BIs under the 
provisions of DCID 1/14. Any investigation conducted by one of the 
above-cited agencies under DCID 1/14 standards is considered to meet the 
SBI investigative requirements of this part.
    (3) The detailed scope of an SBI is set forth in paragraph 4, 
Appendix A.
    (g) Special investigative inquiry. (1) A Special Investigative 
Inquiry is a personnel security investigation conducted to prove or 
disprove allegations relating to the criteria outlined in Sec. 154.7(a) 
of this part except current criminal activities (see Sec. 154.9(c)(4)), 
that have arisen concerning an individual upon whom a personnel security 
determination has been previously made and who, at the time of the 
allegation, holds a security clearance or otherwise occupies a position 
that requires a trustworthiness determination.
    (2) Special Investigative Inquiries are scoped as necessary to 
address the specific matters requiring resolution in the case concerned 
and generally consist of record checks and/or interviews with 
potentially knowledgeable persons. An SII may include an interview with 
the subject of the investigation when necessary to resolve conflicting 
information and/or to provide an opportunity to refute or mitigate 
adverse information.
    (3) In those cases when there is a disagreement between Defense 
Investigative Service (DIS) and the requester as to the appropriate 
scope of the investigation, the matter may be referred to the Deputy 
Under Secretary of Defense for Policy for resolution.
    (h) Periodic reinvestigation. As referred to in Sec. 154.19(a) and 
other national directives, certain categories of duties, clearance, and 
access require the conduct of a PR every five years according to the 
scope outlined in paragraph 5, Appendix A. The PR scope applies to 
military, civilian, contractor, and foreign national personnel.
    (i) Personal interview. Investigative experience over the years has 
demonstrated that, given normal circumstances, the subject of a 
personnel security investigation is the best source of accurate and 
relevant information concerning the matters under consideration. 
Further, restrictions imposed by the Privacy Act of 1974 dictate that 
Federal investigative agencies collect information to the greatest 
extent practicable directly from the subject when the information may 
result in adverse determinations about an individual's rights, benefits, 
and privileges under Federal programs. Accordingly, personal interviews 
are an integral part of the DoD personnel security program and shall be 
conducted in accordance with the requirements set forth in the following 
paragraphs of this section.
    (1) BI/PR. A personal interview shall be conducted by a trained DIS 
agent as part of each BI and PR.
    (2) Resolving adverse information. A personal interview of the 
subject shall be conducted by a DIS agent (or, when authorized, by 
investigative personnel of other DoD investigative organizations 
designated in this Regulation to conduct personnel security 
investigations), when necessary, as part of each Special Investigative 
Inquiry, as well as during the course of initial or expanded 
investigations, to resolve or

[[Page 718]]

clarify any information which may impugn the subject's moral character, 
threaten the subject's future Federal employment, raise the question of 
subject's security clearability, or be otherwise stigmatizing.
    (3) Hostage situation. A personal interview shall be conducted by a 
DIS agent (or, when authorized, by investigative personnel of other DoD 
investigative organizations designated in this Regulation to conduct 
personnel security investigations) in those instances in which an 
individual has immediate family members or other persons bound by ties 
of affection or obligation who reside in a nation whose interests are 
inimical to the interests of the United States. (See Sec. 154.9(d).
    (4) Applicants/potential nominees for DoD military or civilian 
positions requiring access to SCI or other positions requiring an SBI. A 
personal interview of the individual concerned shall be conducted, to 
the extent feasible, as part of the selection process for applicants/
potential nominees for positions requiring access to SCI or completion 
of an SBI. The interview shall be conducted by a designee of the 
Component to which the applicant or potential nominee is assigned. 
Clerical personnel are not authorized to conduct these interviews. Such 
interviews shall be conducted utilizing resources in the order of 
priority indicated below:
    (i) Existing personnel security screening systems (e.g., Air Force 
Assessment Screening Program, Naval Security Group Personnel Security 
Interview Program, U.S. Army Personnel Security Screening Program); or
    (ii) Commander of the nominating organization or such official as he 
or she has designated in writing (e.g., Deputy Commander, Executive 
Officer, Security Officer, Security Manager, S-2, Counterintelligence 
Specialist, Personnel Security Specialist, or Personnel Officer); or
    (iii) Agents of investigative agencies in direct support of the 
Component concerned.
    (5) Administrative procedures. (i) The personal interview required 
by paragraph (i)(4) of this section shall be conducted in accordance 
with Appendix F.
    (ii) For those investigations requested subsequent to the personal 
interview requirements of paragraph (i)(4) of this section the following 
procedures apply:
    (A) The DD Form 1879 (Request for Personnel Security Investigation) 
shall be annotated under Item 20 (Remarks) with the statement ``Personal 
Interview Conducted by (cite the duty assignment of the designated 
official (e.g., Commander, Security Officer, Personnel Security 
Specialist, etc.))'' in all cases in which an SBI is subsequently 
requested.
    (B) Unfavorable information developed through the personal interview 
required by paragraph (i)(4) of this section, will be detailed in a 
written report attached to the DD Form 1879 to include full 
identification of the interviewer. Failure to provide such information 
may result in conduct of an incomplete investigation by DIS.
    (C) Whenever it is determined that it is not feasible to conduct the 
personal interview required by paragraph (i)(4) of this section prior to 
requesting the SBI, the DD Form 1879 shall be annotated under Item 20 
citing the reason for not conducting the interview.
    (j) Expanded investigation. If adverse or questionable information 
relevant to a security determination is developed during the conduct of 
a personnel security investigation, regardless of type, the 
investigation shall be expanded, consistent with the restrictions in 
Sec. 154.10(e) to the extent necessary to substantiate or disprove the 
adverse or questionable information.



Sec. 154.9  Authorized personnel security investigative agencies.

    (a) General. The DIS provides a single centrally directed personnel 
security investigative service to conduct personnel security 
investigations within the 50 States, District of Columbia, and 
Commonwealth of Puerto Rico for DoD Components, except as provided for 
in DoD Directive 5100.23.\1\ DIS will request the Military Departments 
or other appropriate Federal Agencies to accomplish DoD investigative 
requirements in other geographic areas beyond their jurisdiction. No 
other DoD Component shall conduct personnel security investigations 
unless specifically authorized

[[Page 719]]

by the Deputy Under Secretary of Defense for Policy. In certain 
instances provided for below, the DIS shall refer an investigation to 
other investigative agencies.
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 154.2(c).
---------------------------------------------------------------------------

    (b) Subversive affiliations--(1) General. In the context of DoD 
investigative policy, subversion refers only to such conduct as is 
forbidden by the laws of the United States. Specifically, this is 
limited to information concerning the activities of individuals or 
groups that involve or will involve the violation of Federal law, for 
the purpose of:
    (i) Overthrowing the Government of the United States or the 
government of a State;
    (ii) Substantially impairing for the purpose of influencing U.S. 
Government policies or decisions:
    (A) The functions of the Government of the United States, or
    (B) The functions of the government of a State;
    (iii) Depriving persons of their civil rights under the Constitution 
or laws of the United States.
    (2) Military Department/FBI jurisdiction. Allegations of activities 
covered by Sec. 154.7 (a) through (f) are in the exclusive investigative 
domain of either the counterintelligence agencies of the Military 
Departments or the FBI, depending on the circumstances of the case and 
the provisions of the Agreement Governing the Conduct of Defense 
Department Counterintelligence Activities in Conjunction with the FBI. 
Whenever allegations of this nature are developed, whether before or 
after a security clearance has been issued or during the course of a 
personnel security investigation conducted by DIS, they shall be 
referred immediately to either the FBI or to a military department 
counterintelligence agency, as appropriate.
    (3) DIS jurisdiction. Allegations of activities limited to those set 
forth in Sec. 154.7 (g) through (j) of this part shall be investigated 
by DIS.
    (c) Suitability information--(1) General. Most derogatory 
information developed through personnel security investigations of DoD 
military or civilian personnel is so-called suitability information, 
that is, information pertaining to activities or situations covered by 
Sec. 154.7 (g) through (q). Almost all unfavorable personnel security 
determinations made by DoD authorities are based on derogatory 
suitability information, although such information is often used as a 
basis for unfavorable administrative actions not of a security nature, 
such as action under the Uniform Code of Military Justice or removal 
from Federal employment under OPM regulations.
    (2) Pre-clearance investigation. Derogatory suitability information, 
except that covered in paragraph (c)(4) of this section, developed 
during the course of a personnel security investigation, prior to the 
issuance of an individual's personnel security clearance, shall be 
investigated by DIS to the extent necessary to confirm or refute its 
applicability to Sec. 154.7 (g) through (q).
    (3) Postadjudication investigation. Derogatory suitability 
allegations, except those covered by paragraph (c)(4) of this section 
arising subsequent to clearance requiring investigation to resolve and 
to determine the individual's eligibility for continued access to 
classified information, reinstatement of clearance/access, or retention 
in a sensitive position shall be referred to DIS to conduct a Special 
Investigative Inquiry. Reinvestigation of individuals for adjudicative 
reconsideration due to the passage of time or evidence of favorable 
behavior shall also be referred to DIS for investigation. In such cases, 
completion of the appropriate statement of personal history by the 
individual constitutes consent to be investigated. Individual consent or 
completion of a statement of personal history is not required when 
Sec. 154.19(b) applies. Postadjudication investigation of allegations of 
a suitability nature required to support other types of unfavorable 
personnel security determinations or disciplinary procedures independent 
of a personnel security determination shall be handled in accordance 
with applicable Component administrative regulations. These latter 
categories of allegations lie outside the DoD personnel security program 
and are not a proper investigative function for departmental 
counterintelligence organizations, Component personnel security 
authorities, or DIS.

[[Page 720]]

    (4) Allegations of criminal activity. Any allegations of conduct of 
a nature indicating possible criminal conduct, including any arising 
during the course of a personnel security investigation, shall be 
referred to the appropriate DoD, military department or civilian 
criminal investigative agency. Military department investigative 
agencies have primary investigative jurisdiction in cases where there is 
probable cause to believe that the alleged conduct will be the basis for 
prosecution under the Uniform Code of Military Justice.
    (d) Hostage situations--(1) General. A hostage situation exists when 
a member of an individual's immediate family or such other person to 
whom the individual is bound by obligation or affection resides in a 
country whose interests are inimical to the interests of the United 
States. The rationale underlying this category of investigation is based 
on the possibility that an individual in such a situation might be 
coerced, influenced, or pressured to act contrary to the best interests 
of national security.
    (2) DIS jurisdiction. In the absence of evidence of any coercion, 
influence or pressure, hostage investigations are exclusively a 
personnel security matter, rather than counterintelligence, and all such 
investigations shall be conducted by DIS.
    (3) Military Department and/or FBI jurisdiction. Should indications 
be developed that hostile intelligence is taking any action specifically 
directed against the individual concerned--or should there exist any 
other evidence that the individual is actually being coerced, 
influenced, or pressured by an element inimical to the interests of 
national security--then the case becomes a counterintelligence matter 
(outside of investigative jurisdiction of DIS) to be referred to the 
appropriate military department or the FBI for investigation.
    (e) Overseas personnel security investigations. Personnel security 
investigations requiring investigation overseas shall be conducted under 
the direction and control of DIS by the appropriate military department 
investigative organization. Only postadjudication investigations 
involving an overseas subject may be referred by the requester directly 
to the military department investigative organization having 
investigative responsibility in the overseas area concerned (see 
Appendix I) with a copy of the investigative request sent to DIS. In 
such cases, the military department investigative agency will complete 
the investigation, forward the completed report of investigation 
directly to DIS, with a copy to the requester.



Sec. 154.10  Limitations and restrictions.

    (a) Authorized requesters and personnel security determination 
authorities. Personnel security investigations may be requested and 
personnel security clearances (including Special Access authorizations 
as indicated) granted only by those authorities designated in 
Sec. 154.31 and Appendix E.
    (b) Limit investigations and access. The number of persons cleared 
for access to classified information shall be kept to a minimum, 
consistent with the requirements of operations. Special attention shall 
be given to eliminating unnecessary clearances and requests for 
personnel security investigations.
    (c) Collection of investigative data. To the greatest extent 
practicable, personal information relevant to security determinations 
shall be obtained directly from the subject of a personnel security 
investigation. Such additional information required to make the 
necessary personnel security determination shall be obtained as 
appropriate from knowledgeable personal sources, particularly the 
subject's peers, and through checks of relevant records including 
school, employment, credit, medical, and law enforcement records.
    (d) Privacy Act notification. Whenever personal information is 
solicited from an individual preparatory to the initiation of a 
personnel security investigation, the individual must be informed of--
    (1) The authority (statute or Executive order that authorized 
solicitation);
    (2) The principal purpose or purposes for which the information is 
to be used;
    (3) The routine uses to be made of the information;
    (4) Whether furnishing such information is mandatory or voluntary;
    (5) The effect on the individual, if any, of not providing the 
information and

[[Page 721]]

    (6) That subsequent use of the data may be employed as part of an 
aperiodic, random process to screen and evaluate continued eligibility 
for access to classified information.
    (e) Restrictions on investigators. Investigation shall be carried 
out insofar as possible to collect only as much information as is 
relevant and necessary for a proper personnel security determination. 
Questions concerning personal and domestic affairs, national origin, 
financial matters, and the status of physical health thus should be 
avoided unless the question is relevant to the criteria of Sec. 154.7. 
Similarly, the probing of a person's thoughts or beliefs and questions 
about conduct that have no personnel security implications are 
unwarranted. When conducting investigations under the provisions of this 
part, investigators shall:
    (1) Investigate only cases or persons assigned within their official 
duties.
    (2) Interview sources only where the interview can take place in 
reasonably private surroundings.
    (3) Always present credentials and inform sources of the reasons for 
the investigation. Inform sources of the subject's accessibility to the 
information to be provided and to the identity of the sources providing 
the information. Restrictions on investigators relating to Privacy Act 
advisements to subjects of personnel security investigations are 
outlined in paragraph (d) of this section.
    (4) Furnish only necessary identity data to a source, and refrain 
from asking questions in such a manner as to indicate that the 
investigator is in possession of derogatory information concerning the 
subject of the investigation.
    (5) Refrain from using, under any circumstances, covert or 
surreptitious investigative methods, devices, or techniques including 
mail covers, physical or photographic surveillance, voice analyzers, 
inspection of trash, paid informants, wiretap, or eavesdropping devices.
    (6) Refrain from accepting any case in which the investigator knows 
of circumstances that might adversely affect his fairness, impartiality, 
or objectivity.
    (7) Refrain, under any circumstances, from conducting physical 
searches of the subject or his property.
    (8) Refrain from attempting to evaluate material contained in 
medical files. Medical files shall be evaluated for personnel security 
program purposes only by such personnel as are designated by DoD medical 
authorities. However, review and collection of medical record 
information may be accomplished by authorized investigative personnel.
    (f) Polygraph restrictions. The polygraph may be used as a personnel 
security screening measure only in those limited instances authorized by 
the Secretary of Defense in DoD Directive 5210.48.\1\
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 154.2(c).
---------------------------------------------------------------------------



        Subpart C--Personnel Security Investigative Requirements



Sec. 154.13  Sensitive positions.

    (a) Designation of sensitive positions. Certain civilian positions 
within the Department of Defense entail duties of such a sensitive 
nature, including access to classified information, that the misconduct, 
malfeasance, or nonfeasance of an incumbent in any such position could 
result in an unacceptably adverse impact upon the national security. 
These positions are referred to in this part as sensitive positions. It 
is vital to the national security that great care be exercised in the 
selection of individuals to fill such positions. Similarly, it is 
important that only positions which truly meet one or more of the 
criteria set forth in paragraph (b) of this section be designated as 
sensitive.
    (b) Criteria for security designation of positions. Each civilian 
position within the Department of Defense shall be categorized, with 
respect to security sensitivity, as either nonsensitive, noncritical-
sensitive, or critical-sensitive.
    (1) The criteria to be applied in designating a position as 
sensitive are:
    (i) Critical-sensitive.
    (A) Access to Top Secret information.
    (B) Development or approval of plans, policies, or programs that 
affect the overall operations of the Department of Defense or of a DoD 
Component.

[[Page 722]]

    (C) Development or approval of war plans, plans or particulars of 
future major or special operations of war, or critical and extremely 
important items of war.
    (D) Investigative and certain investigative support duties, the 
issuance of personnel security clearances or access authorizations, or 
the making of personnel security determinations.
    (E) Fiduciary, public contact, or other duties demanding the highest 
degree of public trust.
    (F) Duties falling under Special Access programs.
    (G) Category I automated data processing (ADP) positions.
    (H) Any other position so designated by the head of the Component or 
designee.
    (ii) Noncritical-sensitive.
    (A) Access to Secret or Confidential information.
    (B) Security police/provost marshal-type duties involving the 
enforcement of law and security duties involving the protection and 
safeguarding of DoD personnel and property.
    (C) Category II automated data processing positions.
    (D) Duties involving education and orientation of DoD personnel.
    (E) Duties involving the design, operation, or maintenance of 
intrusion detection systems deployed to safeguard DoD personnel and 
property.
    (F) Any other position so designated by the head of the Component or 
designee.
    (2) All other positions shall be designated as nonsensitive.
    (c) Authority to designate sensitive positions. The authority to 
designate sensitive positions is limited to those authorities designated 
in paragraph G, Appendix E. These authorities shall designate each 
position within their jurisdiction as to its security sensitivity and 
maintain these designations current vis-a-vis the specific duties of 
each position.
    (d) Limitation of sensitive positions. It is the responsibility of 
those authorities authorized to designate sensitive positions to insure 
that only those positions are designated as sensitive that meet the 
criteria of paragraph (b) and (c) of this section that the designation 
of sensitive positions is held to a minimum consistent with mission 
requirements. Designating authorities shall maintain an accounting of 
the number of sensitive positions by category, i.e., critical or non-
critical sensitive. Such information will be included in annual report 
required in subpart K.
    (e) Billet control system for Top Secret. (1) To standardize and 
control the issuance of Top Secret clearances within the Department of 
Defense, a specific designated billet must be established and maintained 
for all DoD military and civilian positions requiring access to Top 
Secret information. Only persons occupying these billet positions will 
be authorized a Top Secret clearance. If an individual departs from a 
Top Secret billet to a billet/position involving a lower level 
clearance, the Top Secret clearance will be administratively rescinded. 
This Top Secret billet requirement is in addition to the existing billet 
structure maintained for SCI access.
    (2) Each request to DIS for a BI or SBI that involves access to Top 
Secret or SCI information will require inclusion of the appropriate 
billet reference, on the request for investigation. Each Component head 
should in corporate, to the extent feasible, the Top Secret billet 
structure into the component Manpower Unit Manning Document. Such a 
procedure should minimize the time and effort required to maintain such 
a billet structure.
    (3) A report on the number of established Top Secret billets will be 
submitted each year to the DUSD(P) as part of the annual clearance 
report referred to in subpart K.



Sec. 154.14  Civilian employment.

    (a) General. The appointment of each civilian employee in any DoD 
Component is subject to investigation, except for reappointment when the 
break in employment is less than 12 months. The type of investigation 
required is set forth in this section according to position sensitivity.
    (b) Nonsensitive positions. In accordance with the OPM Federal 
Personnel Manual, a NACI shall be requested not later than 3 working 
days after a person is appointed to a nonsensitive position. Although 
there is normally no investigation requirement for per diem,

[[Page 723]]

intermittent, temporary or seasonal employees in nonsensitive positions 
provided such employment does not exceed an aggregate of 120 days in 
either a single continuous or series of appointments, a NAC may be 
requested of DIS where deemed appropriate by the employing activity.
    (c) Noncritical-sensitive positions. (1) An NACI shall be requested 
and the NAC portion favorably completed before a person is appointed to 
a noncritical-sensitive position (for exceptions see paragraph (e) (1) 
and (2) of this section). An ENTNAC, NAC or DNACI conducted during 
military or contractor employment may also be used for appointment 
provided a NACI has been requested from OPM and there is no more than 12 
months break in service since completion of the investigation.
    (2) Seasonal employees (including summer hires) normally do not 
require access to classified information. For those requiring access to 
classified information the appropriate investigation is required. The 
request for the NAC (or NACI) should be submitted to DIS by entering 
``SH'' (summer hire) in red letters approximately one inch high on the 
DD Form 398-2, Personnel Security Questionnaire (National Agency 
Checklist). Additionally, to ensure expedited processing by DIS, summer 
hire requests should be assembled and forwarded to DIS in bundles, when 
appropriate.
    (d) Critical-sensitive positions. A BI shall be favorably completed 
prior to appointment to critical-sensitive positions (for exceptions see 
paragraph (e) (1) and (2) of this section. Certain critical-sensitive 
positions require a preappointment SBI in accordance with Sec. 154.17. 
Preappointment BIs and SBIs will be conducted by DIS.
    (e) Exceptions--(1) Noncritical-sensitive. In an emergency, a 
noncritical-sensitive position may be occupied pending the completion of 
the NACI if the head of the requesting organization finds that the delay 
in appointment would be harmful to the national security and such 
finding is reduced to writing and made part of the record. In such 
instances, the position may be filled only after the NACI has been 
requested.
    (2) Critical-sensitive. In an emergency, a critical-sensitive 
position may be occupied pending completion of the BI (or SBI, as 
appropriate) if the head of the requesting organization finds that the 
delay in appointment would be harmful to the national security and such 
finding is reduced to writing and made a part of the record. In such 
instances, the position may be filled only when the NAC portion of the 
BI (or SBI) or a previous valid NACI, NAC or ENTNAC has been completed 
and favorably adjudicated.
    (f) Mobilization of DoD civilian retirees. The requirements 
contained in paragraph (a) of this section, regarding the type of 
investigation required by position sensitivity for DoD civilian retirees 
temporary appointment when the break in employment is greater than 12 
months, should either be expedited or waived for the purposes of 
mobilizing selected reemployed annuitants under the provisions of title 
5, United States Code, depending upon the degree of sensitivity of the 
position to which assigned. Particular priority should be afforded to 
newly assigned personnel assigned to the defense intelligence and 
security agencies with respect to granting security clearances in an 
expeditious manner under paragraph (a) of this section.



Sec. 154.15  Military appointment, enlistment, and induction.

    (a) General. The appointment, enlistment, and induction of each 
member of the Armed Forces or their Reserve Components shall be subject 
to the favorable completion of a personnel security investigation. The 
types of investigation required are set forth in this section.
    (b) Entrance investigation. (1) An ENTNAC shall be conducted on each 
enlisted member of the Armed Forces at the time of initial entry into 
the service. A DNACI shall be conducted on each commissioned officer, 
except as permitted by paragraph (d) of this section, warrant officer, 
cadet, midshipman, and Reserve Officers Training Candidate, at the time 
of appointment. A full NAC shall be conducted upon reentry of any of the 
above when there has been a break in service greater than 12 months.

[[Page 724]]

    (2) If an officer or warrant officer candidate has been the subject 
of a favorable NAC or ENTNAC and there has not been a break in service 
of more than 12 months, a new NAC is not authorized. This includes ROTC 
graduates who delay entry onto active duty pending completion of their 
studies.
    (3) All derogatory information revealed during the enlistment or 
appointment process that results in a moral waiver will be fully 
explained on a written summary attached to the DD Form 398-2.
    (c) Reserve Components and National Guard. Reserve Component and 
National Guard personnel not on active duty are subject to the 
investigative requirements of this section.
    (d) Exceptions for certain commissioned officers of Reserve 
Components. The requirements for entrance investigation shall be rigidly 
adhered to except as follows. Health professionals, chaplains, and 
attorneys may be commissioned in the Reserve Components prior to 
completion of a DNACI provided that:
    (1) A DNACI is initiated at the time an application for a commission 
is received; and
    (2) The applying health professional, chaplain, or attorney agrees 
in writing that, if the results of the investigation are unfavorable, he 
or she will be subject to discharge if found to be ineligible to hold a 
commission. Under this exception, commissions in Reserve Components 
other than the National Guard may be tendered to immigrant alien health 
professionals, chaplains, and attorneys.
    (e) Mobilization of military retirees. The requirements contained in 
paragraph (c) of this section, regarding a full NAC upon reentry to 
active duty of any officer or enlisted regular/reserve military retiree 
or Individual Ready Reserve who has been separated from service for a 
period of greater than 12 months, should be waived for the purposes of 
partial or full mobilization under provisions of title 10, (title 14, 
pertaining to the U.S. Coast Guard as an element of the Navy) U.S. Code, 
to include the period of prescribed service refresher training. 
Particular priority should be afforded to military retirees mobilized 
and assigned to the defense intelligence and security agencies 
communities.



Sec. 154.16  Security clearance.

    (a) General. (1) The authorities designated in paragraph A, Appendix 
E are the only authorities authorized to grant, deny or revoke DoD 
personnel security clearances. The granting of such clearances shall be 
limited to only those persons who require access to classified 
information for mission accomplishment.
    (2) Military, DoD civilian, and contractor personnel who are 
employed by or serving in a consultant capacity to the DoD, may be 
considered for access to classified information only when such access is 
required in connection with official duties. Such individuals may be 
granted either a final or interim personnel security clearance provided 
the investigative requirements set forth below are complied with, and 
provided further that all available information has been adjudicated and 
a finding made that such clearance would be clearly consistent with the 
interests of national security.
    (b) Investigative requirements for clearance--(1) Top Secret. (i) 
Final Clearance:
    (A) BI.
    (B) Established billet per Sec. 154.13(e) (1) through (3) (except 
contractors).
    (ii) Interim Clearance:
    (A) Favorable NAC, ENTNAC, DNACI, or NACI completed
    (B) Favorable review of DD Form 398/SF-86/SF-171/DD Form 49
    (C) BI or SBI has been initiated
    (D) Favorable review of local personnel, base/military police, 
medical, and other security records as appropriate.
    (E) Established billet per Sec. 154.13(e) (1) through (3) (except 
contractors)
    (F) Provisions of paragraph Sec. 154.14(e) (1) and (2) have been met 
regarding civilian personnel.
    (2) Secret. (i) Final Clearance:
    (A) DNACI: Military (except first-term enlistees) and contractor 
employees
    (B) NACI: Civilian employees
    (C) ENTNAC: First-term enlistees
    (ii) Interim Clearance:
    (A) When a valid need to access Secret information is established, 
an interim Secret clearance may be issued in every case, provided that 
the steps

[[Page 725]]

outlined in paragraphs (b)(2)(ii) (B) through (E) of this section have 
been complied with.
    (B) Favorable review of DD Form 398-2/SF-85/SF-171/DD Form 48.
    (C) NACI, DNACI, or ENTNAC initiated.
    (D) Favorable review of local personnel, base military police, 
medical, and security records as appropriate.
    (E) Provisions of Sec. 154.14(e) have been complied with regarding 
civilian personnel.
    (3) Confidential. (i) Final Clearance:
    (A) NAC or ENTNAC: Military and contractor employees (except for 
Philippine national members of the United States Navy on whom a BI shall 
be favorably completed.)
    (B) NACI: Civilian employees (except for summer hires who may be 
granted a final clearance on the basis of a NAC).
    (ii) Interim Clearance:
    (A) Favorable review of DD Form 398-2/SF 85/SF 171/ DD Form 48.
    (B) NAC, ENTNAC or NACI initiated.
    (C) Favorable review of local personnel, base military police, 
medical, and security records as appropriate.
    (D) Provisions of Sec. 154.14(e) (1) and (2) have been complied with 
regarding civilian personnel.
    (4) Validity of previously granted clearances. Clearances granted 
under less stringent investigative requirements retain their validity; 
however, if a higher degree of clearance is required, investigative 
requirements of this directive will be followed.
    (c) Access to classified information by non-U.S. citizens. (1) Only 
U.S. citizens are eligible for a security clearance. Therefore, every 
effort shall be made to ensure that non-United States citizens are not 
employed in duties that may require access to classified information. 
However, when there are compelling reasons to grant access to classified 
information to an immigrant alien or a foreign national in furtherance 
of the mission of the Department of Defense, such individuals may be 
granted a ``Limited Access Authorization'' (LAA) under the following 
conditions:
    (i) LAAs will be limited to Secret and Confidential level only; LAAs 
for Top Secret are prohibited.
    (ii) Access to classified information is not inconsistent with that 
determined releasable by designated disclosure authorities, in 
accordance with DoD Directive 5230.11\1\ to the country of which the 
individual is a citizen.
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 154.2(c).
---------------------------------------------------------------------------

    (iii) Access to classified information must be limited to 
information relating to a specific program or project.
    (iv) Favorable completion of an BI (scoped for 10 years); where the 
full investigative coverage cannot be completed, a counterintelligence 
scope polygraph examination will be required in accordance with the 
provisions of DoD Directive 5210.48.
    (v) Security clearances previously issued to immigrant aliens will 
be reissued as LAAs.
    (vi) The Limited Access Authorization determination shall be made 
only by an authority designated in paragraph B, Appendix E.
    (vii) LAAs issued by the Unified and Specified Commands shall be 
reported to the central adjudicative facility of the appropriate 
military department in accordance with the assigned responsibilities in 
DoD Directive 5100.3\1\ for inclusion in the Defense Central Index of 
Investigation (DCII).
    (2) In each case of granting a Limited Access Authorization, a 
record shall be maintained as to:
    (i) The identity (including current citizenship) of the individual 
to whom the Limited Access Authorization is granted, to include name and 
date and place of birth;
    (ii) Date and type of most recent investigation to include the 
identity of the investigating agency;
    (iii) The nature of the specific program material(s) to which access 
is authorized (delineated as precisely as possible);
    (iv) The classification level to which access is authorized; and
    (v) The compelling reasons for granting access to the materials 
cited in (iii).
    (vi) Status of the individual (i.e., immigrant alien or foreign 
national).
    (3) Individuals granted LAAs under the foregoing provisions shall be 
the

[[Page 726]]

subject of a 5-year periodic reinvestigation as set forth in paragraph 
5, Appendix A.
    (4) Foreign nationals who are LAA candidates must agree to submit to 
a counterintelligence-scope polygraph examination prior to being granted 
access in accordance with DoD Directive 5210.48.
    (5) If geographical and political situations prevent the full 
completion of the BI (and/or counterintelligence-scope polygraph) 
issuance of an LAA shall not be authorized; exceptions to the policy may 
only be authorized by the DUSD(P).
    (6) A report on all LAAs in effect, including the data required in 
paragraphs (d)(2) (i) through (vi) of this section shall be furnished to 
the Deputy Under Secretary of Defense for Policy within 60 days after 
the end of each fiscal year. (See Sec. 154.77).
    (d) Access by persons outside the Executive Branch. (1) Access to 
classified information by persons outside the Executive Branch shall be 
accomplished in accordance with 32 CFR part 159. The investigative 
requirement shall be the same as for the appropriate level of security 
clearance, except as indicated below.
    (2) Members of the U.S. Senate and House of Representatives do not 
require personnel security clearances. They may be granted access to DoD 
classified information which relates to matters under the jurisdiction 
of the respective Committees to which they are assigned and is needed to 
perform their duties in connection with such assignments.
    (3) Congressional staff members requiring access to DoD classified 
information shall be processed for a security clearance in accordance 
with 32 CFR part 353 and the provisions of this part. The Director, 
Washington Headquarters Services (WHS) will initiate the required 
investigation (initial or reinvestigation) to DIS, adjudicate the 
results and grant, deny or revoke the security clearance, as 
appropriate. The Assistant Secretary of Defense (Legislative Affairs) 
will be notified by WHS of the completed clearance action.
    (4) State governors do not require personnel security clearances. 
They may be granted access to specifically designated classified 
information, on a ``need-to-know'' basis, based upon affirmation by the 
Secretary of Defense or the head of a DoD Component or single designee, 
that access, under the circumstances, serves the national interest. 
Staff personnel of a governor's office requiring access to classified 
information shall be investigated and cleared in accordance with the 
prescribed procedures of this part when the head of a DoD Component, or 
single designee, affirms that such clearance serves the national 
interest. Access shall also be limited to specifically designated 
classified information on a ``need-to-know'' basis.
    (5) Members of the U.S. Supreme Court, the Federal judiciary and the 
Supreme Courts of the individual States do not require personnel 
security clearances. They may be granted access to DoD classified 
information to the extent necessary to adjudicate cases being heard 
before these individual courts.
    (6) Attorneys representing DoD military, civilian or contractor 
personnel, requiring access to DoD classified information to properly 
represent their clients, shall normally be investigated by DIS and 
cleared in accordance with the prescribed procedures in paragraph (b) of 
this section. This shall be done upon certification of the General 
Counsel of the DoD Component involved in the litigation that access to 
specified classified information, on the part of the attorney concerned, 
is necessary to adequately represent his or her client. In exceptional 
instances, when the exigencies of a given situation do not permit timely 
compliance with the provisions of Sec. 154.16(b), access may be granted 
with the written approval of an authority designated in Appendix E 
provided that as a minimum: a favorable name check of the FBI and the 
DCII has been completed, and a DoD Non-Disclosure Agreement has been 
executed. In post-indictment cases, after a judge has invoked the 
security procedures of the Classified Information Procedures Act (CIPA) 
the Department of Justice may elect to conduct the necessary background 
investigation and issue the required security clearance, in coordination 
with the affected DoD Component.

[[Page 727]]

    (e) Restrictions on issuance of personnel security clearances. 
Personnel security clearances must be kept to the absolute minimum 
necessary to meet mission requirements. Personnel security clearances 
shall not be issued:
    (1) To persons in nonsensitive positions.
    (2) To persons whose regular duties do not require authorized access 
to classified information.
    (3) For ease of movement of persons within a restricted, controlled, 
or industrial area, whose duties do not require access to classified 
information.
    (4) To persons who may only have inadvertent access to sensitive 
information or areas, such as guards, emergency service personnel, 
firemen, doctors, nurses, police, ambulance drivers, or similar 
personnel.
    (5) To persons working in shipyards whose duties do not require 
access to classified information.
    (6) To persons who can be prevented from accessing classified 
information by being escorted by cleared personnel.
    (7) To food service personnel, vendors and similar commercial sales 
or service personnel whose duties do not require access to classified 
information.
    (8) To maintenance or cleaning personnel who may only have 
inadvertent access to classified information unless such access cannot 
be reasonably prevented.
    (9) To persons who perform maintenance on office equipment, 
computers, typewriters, and similar equipment who can be denied 
classified access by physical security measures.
    (10) To perimeter security personnel who have no access to 
classified information.
    (11) To drivers, chauffeurs and food service personnel.
    (f) Dual citizenship. Persons claiming both U.S. and foreign 
citizenship shall be processed under Sec. 154.16(b) and adjudicated in 
accordance with the ``Foreign Preference'' standard in Appendix I.
    (g) One-time access. Circumstances may arise where an urgent 
operational or contractual exigency exists for cleared DoD personnel to 
have one-time or short duration access to classified information at a 
higher level than is authorized by the existing security clearance. In 
many instances, the processing time required to upgrade the clearance 
would preclude timely access to the information. In such situations, and 
only for compelling reasons in furtherance of the DoD mission, an 
authority referred to in paragraph (h)(1) of this section, may grant 
higher level access on a temporary basis subject to the terms and 
conditions prescribed below. This special authority may be revoked for 
abuse, inadequate record keeping, or inadequate security oversight. 
These procedures do not apply when circumstances exist which would 
permit the routine processing of an individual for the higher level 
clearance. Procedures and conditions for effecting emergency one-time 
access to the next higher classification level are as follows:
    (1) Authorization for such one-time access shall be granted by a 
flag or general officer, a general court-martial convening authority or 
equivalent Senior Executive Service member, after coordination with 
appropriate security officials.
    (2) The recipient of the one-time access authorization must be a 
U.S. citizen, possess a current DoD security clearance, and the access 
required shall be limited to classified information one level higher 
than the current clearance.
    (3) Such access, once granted, shall be cancelled promptly when no 
longer required, at the conclusion of the authorized period of access, 
or upon notification from the granting authority.
    (4) The employee to be afforded the higher level access shall have 
been continuously employed by a DoD Component or a cleared DoD 
contractor for the preceding 24-month period. Higher level access is not 
authorized for part-time employees.
    (5) Pertinent local records concerning the employee concerned shall 
be reviewed with favorable results.
    (6) Whenever possible, access shall be confined to a single instance 
or at most, a few occasions. The approval for access shall automatically 
expire 30 calendar days from date access commenced. If the need for 
access is expected to continue for a period in excess of 30 days, 
written approval of the granting authority is required. At such

[[Page 728]]

time as it is determined that the need for access is expected to extend 
beyond 90 days, the individual concerned shall be promptly processed for 
the level of clearance required. When extended access has been approved, 
such access shall be cancelled at or before 90 days from original date 
of access.
    (7) Access at the higher level shall be limited to information under 
the control and custody of the authorizing official and shall be 
afforded under the general supervision of a properly cleared employee. 
The employee charged with providing such supervision shall be 
responsible for:
    (i) Recording the higher-level information actually revealed,
    (ii) The date(s) such access is afforded; and
    (iii) The daily retrieval of the material accessed.
    (8) Access at the next higher level shall not be authorized for 
COMSEC, SCI, NATO, or foreign government information.
    (9) The exercise of this provision shall be used sparingly and 
repeat use within any 12 month period on behalf of the same individual 
is prohibited. The approving authority shall maintain a record 
containing the following data with respect to each such access approved:
    (i) The name, and SSN of the employee afforded higher level access.
    (ii) The level of access authorized.
    (iii) Justification for the access, to include an explanation of the 
compelling reason to grant the higher level access and specifically how 
the DoD mission would be furthered.
    (iv) An unclassified description of the specific information to 
which access was authorized and the duration of access along with the 
date(s) access was afforded.
    (v) A listing of the local records reviewed and a statement that no 
significant adverse information concerning the employee is known to 
exist.
    (vi) The approving authority's signature certifying (h)(9) (i) 
through (v) of this section.
    (vii) Copies of any pertinent briefing/debriefings administered to 
the employee.
    (h) Access by retired flag/general officers. (1) Upon determination 
by an active duty flag/general officer that there are compelling 
reasons, in furtherance of the Department of Defense mission, to grant a 
retired flag/general officer access to classified information in 
connection with a specific DoD program or mission, for a period not 
greater than 90 days, the investigative requirements of this part may be 
waived. The access shall be limited to classified information at a level 
commensurate with the security clearance held at the time of 
retirement--not including access to SCI.
    (2) The flag/general officer approving issuance of the clearance 
shall, provide the appropriate DoD Component central clearance facility 
a written record to be incorporated into the DCII detailing:
    (i) Full identifying data pertaining to the cleared subject;
    (ii) The classification of the information to which access was 
authorized.
    (3) Such access may be granted only after the compelling reason and 
the specific aspect of the DoD mission which is served by granting such 
access has been detailed and under the condition that the classified 
materials involved are not removed from the confines of a government 
installation or other area approved for storage of DoD classified 
information.
[52 FR 11219, Apr. 8, 1987, as amended at 55 FR 3223, Jan. 31, 1990]



Sec. 154.17  Special access programs.

    (a) General. It is the policy of the Department of Defense to 
establish, to the extent possible, uniform and consistent personnel 
security investigative requirements. Accordingly, investigations 
exceeding established requirements are authorized only when mandated by 
statute, national regulations, or international agreement. In this 
connection, there are certain Special Access programs originating at the 
national or international level that require personnel security 
investigations and procedures of a special nature. These programs and 
the special investigative requirements imposed by them are described in 
this section. A Special Access program is any program designed to 
control access, distribution, and protection of particularly sensitive 
information established pursuant to

[[Page 729]]

section 4-2 of Executive Order 12356 and prior Orders. Title 32 CFR part 
159 governs the establishment of Departmental Special Access Programs.
    (b) Sensitive Compartmented Information (SCI). (1) The investigative 
requirements for access to SCI is an SBI (See paragraph 4, Appendix A) 
including a NAC on the individual's spouse or cohabitant. When 
conditions indicate, additional investigation shall be conducted on the 
spouse of the individual and members of the immediate family (or other 
persons to whom the individual is bound by affection or obligation) to 
the extent necessary to permit a determination by the adjudication 
agency that the Personnel Security standards of DCID 1/14 are met.
    (2) A previous investigation conducted within the past five years 
which substantially meets the investigative requirements prescribed by 
this section may serve as a basis for granting access approval provided 
that there has been no break in the individual's military service, DoD 
civilian employment, or access to classified information under the 
Industrial Security Program greater than 12 months. The individual shall 
submit one copy of an updated PSQ covering the period since the 
completion of the last SBI.
    (c) Single Integrated Operation Plan--Extremely Sensitive 
Information (SIOP-ESI). The investigative requirement for access to 
SIOP-ESI is an SBI, including a NAC on the spouse and the individual's 
immediate family who are 18 years of age or over and who are U.S. 
citizens other than by birth or who are resident aliens.
    (d) Presidential support activities. (1) DoD Directive 5210.55 \1\ 
prescribes the policies and procedures for the nomination, screening, 
selection, and continued evaluation of DoD military and civilian 
personnel and contractor employees assigned to or utilized in 
Presidential Support activities. The type of investigation of 
individuals assigned to Presidential Support activities varies according 
to whether the person investigated qualifies for Category One or 
Category Two as indicated below:
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 154.2(c).
---------------------------------------------------------------------------

    (i) Category one. (A) Personnel assigned on a permanent or full-time 
basis to duties in direct support of the President (including the office 
staff of the Director, White House Military Office, and all individuals 
under his control):
    (1) Presidential aircrew and associated maintenance and security 
personnel.
    (2) Personnel assigned to the White House communications activities 
and the Presidential retreat.
    (3) White House transportation personnel.
    (4) Presidential mess attendants and medical personnel.
    (5) Other individuals filling administrative positions at the White 
House.
    (B) Personnel assigned on a temporary or part-time basis to duties 
supporting the President:
    (1) Military Social Aides.
    (2) Selected security, transportation, flight-line safety, and 
baggage personnel.
    (3) Others with similar duties.
    (C) Personnel assigned to the Office of the Military Aide to the 
Vice President.
    (ii) Category two. (A) Personnel assigned to honor guards, 
ceremonial units, and military bands who perform at Presidential 
functions and facilities.
    (B) Employees of contractors who provide services or contractors 
employees who require unescorted access to Presidential Support areas, 
activities, or equipment--including maintenance of the Presidential 
retreat, communications, and aircraft.
    (C) Individuals in designated units requiring a lesser degree of 
access to the President or Presidential Support activities.
    (2) Personnel nominated for Category One duties must have been the 
subject of an SBI, including a NAC on the spouse and all members of the 
individual's immediate family of 18 years of age or over who are U.S. 
citizens other than by birth or who are resident aliens. The SBI must 
have been completed within the 12 months preceding selection for 
Presidential Support duties. If such an individual marries subsequent to 
the completion of the SBI, the required spouse check shall be made at 
that time.
    (3) Personnel nominated for Category Two duties must have been the 
subject

[[Page 730]]

of a BI, including a NAC on the spouse and all members of the 
individual's immediate family of 18 years of age or over who are U.S. 
citizens other than by birth or who are resident aliens. The BI must 
have been completed within the 12 months preceding selection for 
Presidential Support duties. It should be noted that duties (separate 
and distinct from their Presidential Support responsibilities) of some 
Category Two personnel may make it necessary for them to have special 
access clearances which require an SBI.
    (4) The U.S. citizenship of foreign-born immediate family members of 
all Presidential Support nominees must be verified by investigation.
    (5) A limited number of Category One personnel having especially 
sensitive duties have been designated by the Director, White House 
Military Office as ``Category A.'' These personnel shall be investigated 
under special scoping in accordance with the requirements of the 
Memorandum of Understanding between the Director, White House Military 
Office and the Special Assistant to the Secretary and Deputy Secretary 
of Defense, July 30, 1980.
    (e) Nuclear Weapon Personnel Reliability Program (PRP). (1) DoD 
Directive 5210.42 \1\ sets forth the standards of individual reliability 
required for personnel performing duties associated with nuclear weapons 
and nuclear components. The investigative requirement for personnel 
performing such duties is:
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 154.2(c).
---------------------------------------------------------------------------

    (i) Critical position: BI. In the event that it becomes necessary to 
consider an individual for a critical position and the required BI has 
not been completed, interim certification may be made under carefully 
controlled conditions as set forth below.
    (A) The individual has had a favorable DNACI, NAC (or ENTNAC) within 
the past 5 years without a break in service or employment in excess of 1 
year.
    (B) The BI has been requested.
    (C) All other requirements of the PRP screening process have been 
fulfilled.
    (D) The individual is identified to supervisory personnel as being 
certified on an interim basis.
    (E) The individual is not used in a two-man team with another such 
individual.
    (F) Justification of the need for interim certification is 
documented by the certifying official.
    (G) Should the BI not be completed within 150 days from the date of 
the request, the certifying official shall query the Component clearance 
authority, who shall ascertain from DIS the status of the investigation. 
On the basis of such information, the certifying official shall 
determine whether to continue or to withdraw the interim certification.
    (ii) Controlled position: DNACI/NACI. (A) An ENTNAC completed for 
the purpose of first term enlistment or induction into the Armed Forces 
does not satisfy this requirement.
    (B) Interim certification is authorized for an individual who has 
not had a DNACI/NACI completed within the past 5 years, subject to the 
following conditions:
    (1) The individual has had a favorable ENTNAC/NAC, or higher 
investigation, that is more than 5 years old and has not had a break in 
service or employment in excess of 1 year.
    (2) A DNACI/NACI has been requested at the time of interim 
certification.
    (3) All other requirements of the PRP screening process have been 
fulfilled.
    (4) Should the DNACI/NACI not be completed within 90 days from the 
date of the request, the procedures set forth in paragraph (e)(1)(i)(G) 
of this section for ascertaining the delay of the investigation in the 
case of a critical position shall apply.
    (iii) Additional requirements apply. (A) The investigation upon 
which certification is based must have been completed within the last 5 
years from the date of initial assignment to a PRP position and there 
must not have been a break in service or employment in excess of 1 year 
between completion of the investigation and initial assignment.
    (B) In those cases in which the investigation was completed more 
than 5 years prior to initial assignment or in which there has been a 
break in service or employment in excess of 1 year subsequent to 
completion of the investigation, a reinvestigation is required.

[[Page 731]]

    (C) Subsequent to initial assignment to the PRP, reinvestigation is 
not required so long as the individual remains in the PRP.
    (D) A medical evaluation of the individual as set forth in DoD 
Directive 5210.42.
    (E) Review of the individual's personnel file and other official 
records and information locally available concerning behavior or conduct 
which is relevant to PRP standards.
    (F) A personal interview with the individual for the purpose of 
informing him of the significance of the assignment, reliability 
standards, the need for reliable performance, and of ascertaining his 
attitude with respect to the PRP.
    (G) Service in the Army, Navy and Air Force Reserve does not 
constitute active service for PRP purposes.
    (f) Access to North Atlantic Treaty Organization (NATO) classified 
information. (1) Personnel assigned to a NATO staff position requiring 
access to NATO Cosmic (Top Secret), Secret, or Confidential information 
shall have been the subject of a favorably adjudicated BI (10 year 
scope), DNACI/NACI or NAC/ENTNAC, current within five years prior to the 
assignment, in accordance with USSAN Instruction 1-69 and 
Sec. 154.19(f).
    (2) Personnel not assigned to a NATO staff position, but requiring 
access to NATO Cosmic, Secret or Confidential information in the normal 
course of their duties, must possess the equivalent final U.S. security 
clearance based upon the appropriate personnel security investigation 
(Appendix A) required by Secs. 154.16(b) and 154.19(j) of this part.
    (g) Other special access programs. Special investigative 
requirements for Special Access programs not provided for in this 
paragraph may not be established without the written approval of the 
Deputy Under Secretary of Defense for Policy.



Sec. 154.18  Certain positions not necessarily requiring access to classified information.

    (a) General. DoD Directive 5200.8 \1\ outlines the authority of 
military commanders under the Internal Security Act of 1950 to issue 
orders and regulations for the protection of property or places under 
their command. Essential to carrying out this responsibility is a 
commander's need to protect the command against the action of 
untrustworthy persons. Normally, the investigative requirements 
prescribed in this part should suffice to enable a commander to 
determine the trustworthiness of individuals whose duties require access 
to classified information or appointment to positions that are sensitive 
and do not involve such access. However, there are certain categories of 
positions or duties which, although not requiring access to classified 
information, if performed by untrustworthy persons, could enable them to 
jeopardize the security of the command or otherwise endanger the 
national security. The investigative requirements for such positions or 
duties are detailed in this section.
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 154.2(c).
---------------------------------------------------------------------------

    (b) Access to restricted areas, sensitive information or equipment 
not involving access to classified information. (1) Access to restricted 
areas, sensitive information or equipment by DoD military, civilian or 
contractor personnel shall be limited to those individuals who have been 
determined trustworthy as a result of the favorable completion of a NAC 
(or ENTNAC) or who are under the escort of appropriately cleared 
personnel. Where escorting such persons is not feasible, a NAC shall be 
conducted and favorably reviewed by the appropriate component agency or 
activity prior to permitting such access. DoD Components shall not 
request, and shall not direct or permit their contractors to request, 
security clearances to permit access to areas when access to classified 
information is not required in the normal course of duties or which 
should be precluded by appropriate security measures. In determining 
trustworthiness under this paragraph, the provisions of Sec. 154.7 and 
Appendix H will be utilized.
    (2) In meeting the requirements of this paragraph, approval shall be 
obtained from one of the authorities designated in paragraph A, Appendix 
E of this part, for authority to request NACs on DoD military, civilian 
or contractor employees. A justification shall

[[Page 732]]

accompany each request which shall detail the reasons why escorted 
access would not better serve the national security. Requests for 
investigative requirements beyond a NAC shall be forwarded to the Deputy 
Under Secretary of Defense for Policy for approval.
    (3) NAC requests shall--
    (i) Be forwarded to DIS in accordance with the provisions of 
paragraph B, Appendix C,
    (ii) Contain a reference to this paragraph on the DD Form 398-2, and
    (iii) List the authority in Appendix E who approved the request.
    (4) Determinations to deny access under the provisions of this 
paragraph must not be exercised in an arbitrary, capricious, or 
discriminatory manner and shall be the responsibility of the military or 
installation commander as provided for in DoD Directive 5200.8.
    (c) Nonappropriated fund employees. Each Nonappropriated Fund 
employee who is employed in a position of trust as designated by an 
official authorized in paragraph H, Appendix E, shall have been the 
subject of a NAC completed no longer than 12 months prior to employment 
or a prior personnel security investigation with no break in Federal 
service or employment greater than 12 months in accordance with DoD 
Manual 1401.1-M. An individual who does not meet established suitability 
requirements may not be employed without prior approval of the 
authorizing official. Issuance of a Confidential or Secret clearance 
will be based on a DNACI or NACI in accordance with Sec. 154.16(b).
    (d) Customs inspectors. DoD employees appointed as customs 
inspectors, under waivers approved in accordance with DoD 5030.49-R 
shall have undergone a favorably adjudicated NAC completed within the 
past 5 years unless there has been a break in DoD employment greater 
than 1 year in which case a current NAC is required.
    (e) Red Cross/United Service Organizations personnel. A favorably 
adjudicated NAC shall be accomplished on Red Cross or United Service 
Organizations personnel as prerequisite for assignment with the Armed 
Forces overseas (32 CFR part 253).
    (f) Officials authorized to issue security clearances. Any person 
authorized to adjudicate personnel security clearances shall have been 
the subject of a favorably adjudicated BI.
    (g) Personnel security clearance adjudication officials. Any person 
selected to serve with a board, committee, or other group responsible 
for adjudicating personnel security cases shall have been the subject of 
a favorably adjudicated BI.
    (h) Persons requiring DoD building passes. Pursuant to DoD Directive 
5210.46 \1\ each person determined by the designated authorities of the 
Components concerned as having an official need for access to DoD 
buildings in the National Capital Region shall be the subject of a 
favorably, adjudicated NAC prior to issuance of a DoD building pass. 
Conduct of a BI for this purpose is prohibited unless approved in 
advance by ODUSD(P).
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 154.2(c).
---------------------------------------------------------------------------

    (i) Foreign national employees overseas not requiring access to 
classified information. Foreign nationals employed by DoD organizations 
overseas, whose duties do not require access to classified information, 
shall be the subject of the following record checks, initiated by the 
appropriate military department investigative organization consistent 
with Sec. 154.9(e) prior to employment:
    (1) Host government law enforcement and security agency checks at 
the city, state (province), and national level, whenever permissible by 
the laws of the host government; and
    (2) DCII.
    (3) FBI-HQ/ID. (Where information exists regarding residence by the 
foreign national in the United States for one year or more since age 
18).
    (j) Special agents and investigative support personnel. Special 
agents and those noninvestigative personnel assigned to investigative 
agencies whose official duties require continuous access to complete 
investigative files and material require an SBI.
    (k) Persons requiring access to chemical agents. Personnel whose 
duties involve access to or security of chemical agents shall be 
screened initially for suitability and reliability and shall be 
evaluated on a continuing basis at the supervisory level to ensure that 
they continue to meet the high standards

[[Page 733]]

required. At a minimum, all such personnel shall have had a favorably 
adjudicated NAC completed within the last 5 years prior to assignment in 
accordance with the provisions of DoD Directive 5210.65.\1\
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 154.2(c).
---------------------------------------------------------------------------

    (l) Education and orientation personnel. Persons selected for duties 
in connection with programs involving the education and orientation of 
military personnel shall have been the subject of a favorably 
adjudicated NAC prior to such assignment. This does not include 
teachers/administrators associated with university extension courses 
conducted on military installations in the United States. Non-US 
citizens from a country listed in Appendix G shall be required to 
undergo a BI if they are employed in a position covered by this 
paragraph.
    (m) Contract guards. Any person performing contract guard functions 
shall have been the subject of a favorably adjudicated NAC prior to such 
assignment.
    (n) Transportation of arms, ammunition and explosives (AA&E). Any 
DoD military, civilian or contract employee (including commercial 
carrier) operating a vehicle or providing security to a vehicle 
transporting Category I, II or Confidential AA&E shall have been the 
subject of a favorably adjudicated NAC or ENTNAC.
    (o) Personnel occupying information systems positions designated 
ADP-I, ADP-II & ADP-III. DoD military, civilian personnel, consultants, 
and contractor personnel performing on unclassified automated 
information systems may be assigned to one of three position sensitivity 
designations (in accordance with Appendix J) and investigated as 
follows:

ADP-I:    BI
ADP-II:   DNACI/NACI
ADP-III:  NAC/ENTNAC


Those personnel falling in the above categories who require access to 
classified information will, of course, be subject to the appropriate 
investigative scope contained in Sec. 154.16(b).
    (p) Others. Requests for approval to conduct an investigation on 
other personnel, not provided for in Sec. 154.18 (b) through (o) 
considered to fall within the general provisions of Sec. 154.18(a) shall 
be submitted, detailing the justification therefor, for approval to the 
Deputy Under Secretary of Defense for Policy. Approval of such requests 
shall be contingent upon an assurance that appropriate review procedures 
exist and that adverse determinations will be made at no lower than 
major command level.



Sec. 154.19  Reinvestigation.

    (a) General. DoD policy prohibits unauthorized and unnecessary 
investigations. There are, however, certain situations and requirements 
that necessitate reinvestigation of an individual who has already been 
investigated under the provisions of this part. It is the policy to 
limit reinvestigation of individuals to the scope contained in paragraph 
5, Appendix A to meet overall security requirements. Reinvestigation, 
generally, is authorized only as follows:
    (1) To prove or disprove an allegation relating to the criteria set 
forth in Sec. 154.7 of this part with respect to an individual holding a 
security clearance or assigned to a position that requires a 
trustworthiness determination;
    (2) To meet the periodic reinvestigation requirements of this part 
with respect to those security programs enumerated below; and
    (3) Upon individual request, to assess the current eligibility of 
individuals who did not receive favorable adjudicative action after an 
initial investigation, if a potential clearance need exists and there 
are reasonable indications that the factors upon which the adverse 
determination was made no longer exists.
    (b) Allegations related to disqualification. Whenever questionable 
behavior patterns develop, derogatory information is discovered, or 
inconsistencies arise related to the disqualification criteria outlined 
in Sec. 154.7 that could have an adverse impact on an individual's 
security status, a Special Investigative Inquiry (SII), psychiatric, 
drug or alcohol evaluation, as appropriate, may be requested to resolve 
all relevant issues in doubt. If it is essential that additional 
relevant personal data is required from the investigative subject, and 
the subject fails to furnish

[[Page 734]]

the required data, the subject's existing security clearance or 
assignment to sensitive duties shall be terminated in accordance with 
Sec. 154.56(b).
    (c) Access to Sensitive Compartmented Information (SCI). Each 
individual having current access to SCI shall be the subject of a PR 
conducted on a 5-year recurring basis scoped as set forth in paragraph 
5, Appendix A.
    (d) Critical-sensitive positions. Each DoD civilian employee 
occupying a critical sensitive position shall be the subject of a PR 
conducted on a 5-year recurring basis scoped as set forth in paragraph 
5, Appendix A.
    (e) Presidential support duties. Each individual assigned 
Presidential Support duties shall be the subject of a PR conducted on a 
5-year recurring basis scoped as set forth in paragraph 5, Appendix A.
    (f) NATO staff. Each individual assigned to a NATO staff position 
requiring a COSMIC clearance shall be the subject of a PR conducted on a 
5-year recurring basis scoped as set forth in paragraph 5, Appendix A. 
Those assigned to a NATO staff position requiring a NATO SECRET 
clearance shall be the subject of a new NAC conducted on a 5-year 
recurring basis.
    (g) Extraordinarily sensitive duties. In extremely limited 
instances, extraordinary national security implications associated with 
certain SCI duties may require very special compartmentation and other 
special security measures. In such instances, a Component SOIC may, with 
the approval of the Deputy Under Secretary of Defense for Policy, 
request PR's at intervals of less than 5 years as outlined in paragraph 
5, Appendix A. Such requests shall include full justification and a 
recommendation as to the desired frequency. In reviewing such requests, 
the Deputy Under Secretary of Defense for Policy shall give due 
consideration to:
    (1) The potential damage that might result from the individual's 
defection or abduction.
    (2) The availability and probable effectiveness of means other than 
reinvestigation to evaluate factors concerning the individual's 
suitability for continued SCI access.
    (h) Foreign nationals employed by DoD organizations overseas. 
Foreign nationals employed by DoD organizations overseas who have been 
granted a ``Limited Access Authorization'' pursuant to Sec. 154.16(d) 
shall be the subject of a PR, as set forth in paragraph 5, Appendix A, 
conducted under the auspices of DIS by the appropriate military 
department or other U.S. Government investigative agency consistent with 
Sec. 154.9(e) and Appendix I of this part.
    (i) Persons accessing very sensitive information classified Secret. 
(1) Heads of DoD Components shall submit a request to the Deputy Under 
Secretary of Defense for Policy for approval to conduct periodic 
reinvestigations on persons holding Secret clearances who are exposed to 
very sensitive Secret information.
    (2) Generally, the Deputy Under Secretary of Defense for Policy will 
only approve periodic reinvestigations of persons having access to 
Secret information if the unauthorized disclosure of the information in 
question could reasonably be expected to:
    (i) Jeopardize human life or safety.
    (ii) Result in the loss of unique or uniquely productive 
intelligence sources or methods vital to U.S. security.
    (iii) Compromise technologies, plans, or procedures vital to the 
strategic advantage of the United States.
    (3) Each individual accessing very sensitive Secret information who 
has been designated by an authority listed in paragraph A, Appendix E as 
requiring periodic reinvestigation, shall be the subject of a PR 
conducted on a 5-year recurring basis scoped as stated in paragraph 5, 
Appendix A.
    (j) Access to Top Secret information. Each individual having current 
access to Top Secret information shall be the subject of a PR conducted 
on a 5-year recurring basis scoped as outlined in paragraph 5, Appendix 
A.
    (k) Personnel occupying computer positions designated ADP-1. All DoD 
military, civilians, consultants, and contractor personnel occupying 
computer positions designated ADP-I, shall be the subject of a PR 
conducted on a 5-year recurring basis as set forth in paragraph 5, 
Appendix A.

[[Page 735]]



Sec. 154.20  Authority to waive investigative requirements.

    Authorized officials. Only an official designated in paragraph G, 
Appendix E, is empowered to waive the investigative requirements for 
appointment to a sensitive position, assignment to sensitive duties or 
access to classified information pending completion of the investigation 
required by this section. Such waiver shall be based upon certification 
in writing by the designated official that such action is necessary to 
the accomplishment of a DoD mission. A minor investigative element that 
has not been met should not preclude favorable.



 Subpart D--Reciprocal Acceptance of Prior Investigations and Personnel 
                         Security Determinations



Sec. 154.23  General.

    Previously conducted investigations and previously rendered 
personnel security determinations shall be accepted within DoD in 
accordance with the policy set forth below.



Sec. 154.24  Prior investigations conducted by DoD investigative organizations.

    As long as there is no break in military service/civilian employment 
greater than 12 months, any previous personnel security investigation 
conducted by DoD investigative organizations that essentially is 
equivalent in scope to an investigation required by this part will be 
accepted without requesting additional investigation. There is no time 
limitation as to the acceptability of such investigations, subject to 
the provisions of Secs. 154.8(h) and 154.25(b) of this part.



Sec. 154.25  Prior personnel security determinations made by DoD authorities.

    (a) Adjudicative determinations for appointment in sensitive 
positions, assignment to sensitive duties or access to classified 
information (including those pertaining to SCI) made by designated DoD 
authorities will be mutually and reciprocally accepted by all DoD 
Components without requiring additional investigation, unless there has 
been a break in the individual's military service/civilian employment of 
greater than 12 months or unless derogatory information that occurred 
subsequent to the last prior security determination becomes known. A 
check of the DCII should be conducted to accomplish this task.
    (b) Whenever a valid DoD security clearance or Special Access 
authorization (including one pertaining to SCI) is on record, Components 
shall not request DIS or other DoD investigative organizations to 
forward prior investigative files for review unless:
    (1) Significant derogatory information or investigation completed 
subsequent to the date of last clearance or Special Access 
authorization, is known to the requester; or
    (2) The individual concerned is being considered for a higher level 
clearance (e.g., Secret or Top Secret) or the individual does not have a 
Special Access authorization and is being considered for one; or
    (3) There has been a break in the individual's military service/
civilian employment of greater than 12 months subsequent to the issuance 
of a prior clearance.
    (4) The most recent SCI access authorization of the individual 
concerned was based on a waiver.
    (c) Requests for prior investigative files authorized by this part 
shall be made in writing, shall cite the specific justification for the 
request (i.e., upgrade of clearance, issue Special Access authorization, 
etc.), and shall include the date, level, and issuing organization of 
the individual's current or most recent security clearance or Special 
Access authorization.
    (d) All requests for non-DoD investigative files, authorized under 
the criteria prescribed by paragraphs (a), (b) (1), (2), (3), and (4) 
and (c) of this section shall be:
    (1) Submitted on DD Form 398-2 to DIS;
    (2) Annotated as a ``Single Agency Check'' of whichever agency or 
agency developed the investigative file or to obtain the check of a 
single national agency.
    (e) When further investigation is desired, in addition to an 
existing non-

[[Page 736]]

DoD investigative file, a DD Form 1879 will be submitted to DIS with the 
appropriate security forms attached. The submission of a Single Agency 
Check via DD Form 398-2 will be used to obtain an existing investigative 
file or check a single national agency.
    (f) Whenever a civilian or military member transfers from one DoD 
activity to another, the losing organization's security office is 
responsible for advising the gaining organization of any pending action 
to suspend, deny or revoke the individual's security clearance as well 
as any adverse information that may exist in security, personnel or 
other files. In such instances the clearance shall not be reissued until 
the questionable information has been adjudicated.



Sec. 154.26  Investigations conducted and clearances granted by other agencies of the Federal government.

    (a) Whenever a prior investigation or personnel security 
determination (including clearance for access to information classified 
under E.O. 12356 of another agency of the Federal Government meets the 
investigative scope and standards of this part, such investigation or 
clearance may be accepted for the investigative or clearance purposes of 
this part, provided that the employment with the Federal agency 
concerned has been continuous and there has been no break longer than 12 
months since completion of the prior investigation, and further provided 
that inquiry with the agency discloses no reason why the clearance 
should not be accepted. If it is determined that the prior investigation 
does not meet the provisions of this paragraph, supplemental 
investigation shall be requested.
    (b) A NACI conducted by OPM shall be accepted and considered 
equivalent to a DNACI for the purposes of this part.
    (c) Department of Defense policy on reciprocal acceptance of 
clearances with the Nuclear Regulatory Commission and the Department of 
Energy is set forth in DoD Directive 5210.2.\1\
---------------------------------------------------------------------------

    \1\ See footnote l to Sec. 154.2(c).
---------------------------------------------------------------------------



         Subpart E--Requesting Personnel Security Investigations



Sec. 154.30  General.

    Requests for personnel security investigations shall be limited to 
those required to accomplish the Defense mission. Such requests shall be 
submitted only by the authorities designated in Sec. 154.31. These 
authorities shall be held responsible for determining if persons under 
their jurisdiction require a personnel security investigation. Proper 
planning must be effected to ensure that investigative requests are 
submitted sufficiently in advance to allow completion of the 
investigation before the time it is needed to grant the required 
clearance or otherwise make the necessary personnel security 
determination.



Sec. 154.31  Authorized requesters.

    Requests for personnel security investigation shall be accepted only 
from the requesters designated below:
    (a) Military Departments. (1) Army.
    (i) Central Clearance Facility.
    (ii) All activity commanders.
    (iii) Chiefs of recruiting stations.
    (2) Navy (including Marine Corps).
    (i) Central Adjudicative Facility.
    (ii) Commanders and commanding officers of organizations listed on 
the Standard Navy Distribution List.
    (iii) Chiefs of recruiting stations.
    (3) Air Force.
    (i) Air Force Security Clearance Office.
    (ii) Assistant Chief of Staff for Intelligence.
    (iii) All activity commanders.
    (iv) Chiefs of recruiting stations.
    (b) Defense Agencies--Directors of Security and activity commanders.
    (c) Organization of the Joint Chiefs of Staff--Chief, Security 
Division.
    (d) Office of the Secretary of Defense--Director for Personnel and 
Security, Washington Headquarters Services.
    (e) Commanders of Unified and Specified Commands or their designees.
    (f) Such other requesters approved by the Deputy Under Secretary of 
Defense for Policy.

[[Page 737]]



Sec. 154.32  Criteria for requesting investigations.

    Authorized requesters shall use the tables set forth in Appendix C 
to determine the type of investigation that shall be requested to meet 
the investigative requirement of the specific position or duty 
concerned.



Sec. 154.33  Request procedures.

    To insure efficient and effective completion of required 
investigations, all requests for personnel security investigations shall 
be prepared and forwarded in accordance with Appendix B and the 
investigative jurisdictional policies set forth in Sec. 154.9.



Sec. 154.34  Priority requests.

    To insure that personnel security investigations are conducted in an 
orderly and efficient manner, requests for priority for individual 
investigations or categories of investigations shall be kept to a 
minimum. DIS shall not assign priority to any personnel security 
investigation or categories of investigations without written approval 
of the Deputy Under Secretary of Defense for Policy.



Sec. 154.35  Personal data provided by the subject of the investigation.

    (a) To conduct the required investigation, it is necessary that the 
investigative agency be provided certain relevant data concerning the 
subject of the investigation. The Privacy Act of 1974 requires that, to 
the greatest extent practicable, personal information shall be obtained 
directly from the subject individual when the information may result in 
adverse determinations affecting an individual's rights, benefits, and 
privileges under Federal programs.
    (b) Accordingly, it is incumbent upon the subject of each personnel 
security investigation to provide the personal information required by 
this part. At a minimum, the individual shall complete the appropriate 
investigative forms, provide fingerprints of a quality acceptable to the 
FBI, and execute a signed release, as necessary, authorizing custodians 
of police, credit, education, employment, and medical and similar 
records, to provide relevant record information to the investigative 
agency. When the FBI returns a fingerprint card indicating that the 
quality of the fingerprints is not acceptable, an additional set of 
fingerprints will be obtained from the subject. In the event the FBI 
indicates that the additional fingerprints are also unacceptable, no 
further attempt to obtain more fingerprints need be made; this aspect of 
the investigation will then be processed on the basis of the name check 
of the FBI files. As an exception, a minimum of three attempts will be 
made for all Presidential Support cases, for SCI access nominations if 
the requester so indicates, and in those cases in which more than minor 
derogatory information exists. Each subject of a personnel security 
investigation conducted under the provisions of this part shall be 
furnished a Privacy Act Statement advising of the authority for 
obtaining the personal data, the principal purpose(s) for obtaining it, 
the routine uses, whether disclosure is mandatory or voluntary, the 
effect on the individual if it is not provided, and that subsequent use 
of the data may be employed as part of an aperiodic review process to 
evaluate continued eligibility for access to classified information.
    (c) Failure to respond within the time limit prescribed by the 
requesting organization with the required security forms or refusal to 
provide or permit access to the relevant information required by this 
part shall result in termination of the individual's security clearance 
or assignment to sensitive duties utilizing the procedures of 
Sec. 154.59 or further administrative processing of the investigative 
request.



                         Subpart F--Adjudication



Sec. 154.40  General.

    (a) The standard which must be met for clearance or assignment to 
sensitive duties is that, based on all available information, the 
person's loyalty, reliability, and trustworthiness are such that 
entrusting the person with classified information or assigning the 
person to sensitive duties is clearly consistent with the interests of 
national security.
    (b) The principal objective of the DoD personnel security 
adjudicative

[[Page 738]]

function, consequently, is to assure selection of persons for sensitive 
positions who meet this standard. The adjudication process involves the 
effort to assess the probability of future behavior which could have an 
effect adverse to the national security. Since few, if any, situations 
allow for positive, conclusive evidence of certain future conduct, it is 
an attempt to judge whether the circumstances of a particular case, 
taking into consideration prior experience with similar cases, 
reasonably suggest a degree of probability of prejudicial behavior not 
consistent with the national security. It is invariably a subjective 
determination, considering the past but necessarily anticipating the 
future. Rarely is proof of trustworthiness and reliability or 
untrustworthiness and unreliability beyond all reasonable doubt.
    (c) Establishing relevancy is one of the key objectives of the 
personnel security adjudicative process in evaluating investigative 
material. It involves neither the judgment of criminal guilt nor the 
determination of general suitability for a given position; rather, it is 
the assessment of a person's trustworthiness and fitness for a 
responsibility which could, if abused, have unacceptable consequences 
for the national security.
    (d) While equity demands optimal uniformity in evaluating individual 
cases, assuring fair and consistent assessment of circumstances from one 
situation to the next, each case must be weighed on its own merits, 
taking into consideration all relevant facts, and prior experience in 
similar cases. All information of record, both favorable and 
unfavorable, must be considered and assessed in terms of accuracy, 
completeness, relevance, seriousness, and overall significance. In all 
adjudications the protection of the national security shall be the 
paramount determinant.



Sec. 154.41  Central adjudication.

    (a) To ensure uniform application of the requirement of this part 
and to ensure that DoD personnel security determinations are effected 
consistent with existing statutes and Executive orders, the head of each 
Military Department and Defense Agencies shall establish a single 
Central Adjudication Facility for his/her component. The function of 
such facility shall be limited to evaluating personnel security 
investigations and making personnel security determinations. The chief 
of each Central Adjudication Facility shall have the authority to act on 
behalf of the head of the Component concerned with respect to personnel 
security determinations. All information relevant to determining whether 
a person meets the appropriate personnel security standard prescribed by 
this part shall be reviewed and evaluated by personnel security 
specialists specifically designated by the head of the Component 
concerned, or designee.
    (b) In view of the significance each adjudicative decision can have 
on a person's career and to ensure the maximum degree of fairness and 
equity in such actions, a minimum level of review shall be required for 
all clearance/access determinations related to the following categories 
of investigations:
    (1) BI/SBI/PR/ENAC/SII:
    (i) Favorable: Completely favorable investigations shall be reviewed 
and approved by an adjudicative official in the civilian grade of GS-7/9 
or the military rank of O-3.
    (ii) Unfavorable: Investigations that are not completely favorable 
shall undergo at least two levels of review by adjudicative officials, 
the second of which must be at the civilian grade of GS-11/12 or the 
military rank of O-4. When an unfavorable administrative action is 
contemplated under Sec. 154.56(b), the letter of intent (LOI) to deny or 
revoke must be approved and signed by an adjudicative official at the 
civilian grade of GS-13/14 or the military rank of O-5. A final 
notification of unfavorable administrative action, subsequent to the 
issuance of the LOI, must be approved and signed at the civilian grade 
of GS-14/15 or the military rank of O-6.
    (2) NACI/DNACI/NAC/ENTNAC:
    (i) Favorable: A completely favorable investigation may be finally 
adjudicated after one level of review provided that the decisionmaking 
authority is at the civilian grade of GS-5/7 or the military rank of 0-
2.
    (ii) Unfavorable: Investigations that are not completely favorable 
must be reviewed by an adjudicative official in

[[Page 739]]

the civilian grade of GS-7/9 or the military rank of 0-3. When an 
unfavorable administrative action is contemplated under Sec. 154.56(b), 
the letter of intent to deny/revoke must be signed by an adjudicative 
official at the civilian grade of GS-11/12 or the military rank of 0-4. 
A final notification of unfavorable administrative action subsequent to 
the issuance of the LOI must be signed by an adjudicative official at 
the civilian grade of GS-13 or the military rank of 0-5 or above.
    (c) Exceptions to the above policy may only be granted by the Deputy 
Under Secretary of Defense for Policy.



Sec. 154.42  Evaluation of personnel security information.

    (a) The criteria and adjudicative policy to be used in applying the 
principles at Sec. 154.40 are set forth in Sec. 154.7(a) and Appendix H 
of this part. The ultimate consideration in making a favorable personnel 
security determination is whether such determination is clearly 
consistent with the interests of national security and shall be an 
overall common sense evaluation based on all available information. Such 
a determination shall include consideration of the following factors:
    (1) The nature and seriousness of the conduct;
    (2) The circumstances surrounding the conduct;
    (3) The frequency and recency of the conduct;
    (4) The age of the individual;
    (5) The voluntariness of participation; and
    (6) The absence or presence of rehabilitation.
    (b) Detailed adjudication policy guidance to assist adjudicators in 
determining whether a person is eligible for access to classified 
information or assignment to sensitive duties is contained in Appendix 
H. Adjudication policy for access to SCI is contained in DCID 1/14.



Sec. 154.43  Adjudicative record.

    (a) Each adjudicative determinations, whether favorable or 
unfavorable, shall be entered into the Defense Clearance and 
Investigations Index (DCII) on a daily basis, but in no case to exceed 5 
working days from the date of determination.
    (b) The rationale underlying each unfavorable personnel security 
determination, to include the appeal process, and each favorable 
personnel security determination where the investigation or information 
upon which the determination was made included significant derogatory 
information of the type set forth in Sec. 154.7 and appendix H to part 
154, shall be maintained in written or automated form and is subject to 
the provisions of 32 CFR part 285 and 32 CFR part 310. This information 
shall be maintained for a minimum of 5 years from the date of 
determination.
[58 FR 61025, Nov. 19, 1993]



            Subpart G--Issuing Clearance and Granting Access



Sec. 154.47  General.

    (a) The issuance of a personnel security clearance (as well as the 
function of determining that an individual is eligible for access to 
Special Access program information, or is suitable for assignment to 
sensitive duties or such other duties that require a trustworthiness 
determination) is a function distinct from that involving the granting 
of access to classified information. Clearance determinations are made 
on the merits of the individual case with respect to the subject's 
suitability for security clearance. Access determinations are made 
solely on the basis of the individual's need for access to classified 
information in order to perform official duties. Except for suspension 
of access pending final adjudication of a personnel security clearance, 
access may not be finally denied for cause without applying the 
provisions of Sec. 154.56(b).
    (b) Only the authorities designated in paragraph A, Appendix E are 
authorized to grant, deny or revoke personnel security clearances or 
Special Access authorizations (other than SCI). Any commander or head of 
an organization may suspend access for cause when there exists 
information raising a serious question as to the individual's ability or 
intent to protect classified information, provided that the procedures

[[Page 740]]

set forth in Sec. 154.55(b) of this part are complied.
    (c) All commanders and heads of DoD organizations have the 
responsibility for determining those position functions in their 
jurisdiction that require access to classified information and the 
authority to grant access to incumbents of such positions who have been 
cleared under the provisions of this part.



Sec. 154.48  Issuing clearance.

    (a) Authorities designated in paragraph A, Appendix E shall record 
the issuance, denial or revocation of a personnel security clearance in 
the DCII (see Sec. 154.43). A record of the clearance issued shall also 
be recorded in an individual's personnel/security file or official 
personnel folder, as appropriate.
    (b) A personnel security clearance remains valid until the 
individual is separated from the Armed Forces, separated from DoD 
civilian employment, has no further official relationship with DoD, 
official action has been taken to deny, revoke or suspend the clearance 
or access, or regular access to the level of classified information for 
which the individual holds a clearance is no longer necessary in the 
normal course of his or her duties. If an individual resumes his or her 
affiliation with DoD no single break in the individual's relationship 
with DoD exists greater than 24 months and/or, the need for regular 
access to classified information at or below the previous level recurs, 
and no record of an unfavorable administrative action exists, the 
appropriate clearance shall be reissued without further investigation or 
adjudication provided there has been no additional investigation or 
development of derogatory information.
    (c) Personnel security clearances of DoD military personnel shall be 
granted denied or revoked only by the designated authority of the parent 
Military Department. Issuance, reissuance, denial, or revocation of a 
personnel security clearance by any DoD Component concerning personnel 
who have been determined to be eligible for clearance by another 
component is expressly prohibited. Investigations conducted on Army, 
Navy, and Air Force personnel by DIS will be returned only to the parent 
service of the subject for adjudication regardless of the source of the 
original request. The adjudicative authority will be responsible for 
expeditiously transmitting the results of the clearance determination. 
As an exception, the employing DoD Component may issue an interim 
clearance to personnel under their administrative jurisdiction pending a 
final eligibility determination by the individual's parent Component. 
Whenever an employing DoD Component issues an interim clearance to an 
individual from another Component, written notice of the action shall be 
provided to the parent Component.
    (d) When a Defense agency, to include Chairman of the Joint Chiefs 
of Staff, initiates an SBI (or PR) for access to SCI on a military 
member, DIS will return the completed investigation to the appropriate 
Military Department adjudicative authority in accordance with paragraph 
(c) of this section for issuance (or reissuance) of the Top Secret 
clearance. Following the issuance of the security clearance, the 
military adjudicative authority will forward the investigative file to 
the Defense agency identified in the ``Return Results To'' block of the 
DD Form 1879. The receiving agency will then forward the completed SBI 
on to DIA for the SCI adjudication in accordance with DCID 1/14.
    (e) The interim clearance shall be recorded in the DCSI 
(Sec. 154.43) by the parent DoD Component in the same manner as a final 
clearance.
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61025, Nov. 19, 1993]



Sec. 154.49  Granting access.

    (a) Access to classified information shall be granted to persons 
whose official duties require such access and who have the appropriate 
personnel security clearance. Access determinations (other than for 
Special Access programs) are not an adjudicative function relating to an 
individual's suitability for such access. Rather they are decisions made 
by the commander that access is officially required.
    (b) In the absence of derogatory information on the individual 
concerned, DoD commanders and organizational managers shall accept a 
personnel security clearance determination, issued

[[Page 741]]

by any DoD authority authorized by this part to issue personnel security 
clearances, as the basis for granting access, when access is required, 
without requesting additional investigation or investigative files.
    (c) The access level of cleared individuals will, wherever possible, 
be entered into the Defense Clearance and Investigations Index (DCII), 
along with clearance eligibility. However, completion of the DCII Access 
field is required effective October 1, 1993 in all instances where the 
adjudicator with a personnel security investigation. Agencies are 
encouraged to start completing this field as soon as possible.
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61025, Nov. 19, 1993]



Sec. 154.50  Administrative withdrawal.

    As set forth in Sec. 154.48 the personnel security clearance and 
access eligibility must be withdrawn when the events described therein 
occur. When regular access to a prescribed level of classified 
information is no longer required in the normal course of an 
individual's duties, the previously authorized access eligibility level 
must be administratively downgraded or withdrawn, as appropriate.



              Subpart H--Unfavorable Administrative Actions



Sec. 154.55  Requirements.

    (a) General. For purposes of this part, an unfavorable 
administrative action includes any adverse action which is taken as a 
result of a personnel security determination, as defined at Sec. 154.3 
and any unfavorable personnel security determination, as defined at 
Sec. 154.3. This subpart is intended only to provide guidance for the 
internal operation of the Department of Defense and is not intended to, 
does not, and may not be relied upon, to create or enlarge the 
jurisdiction or review authority of any court or administrative 
tribunal, including the Merit Systems Protection Board.
    (b) Referral for action. (1) Whenever derogatory information 
relating to the criteria and policy set forth in Sec. 154.7(a) and 
Appendix H of this part is developed or otherwise becomes available to 
any DoD element, it shall be referred by the most expeditious means to 
the commander or the security officer of the organization to which the 
individual is assigned for duty. The commander or security officer of 
the organization to which the subject of the information is assigned 
shall review the information in terms of its security significance and 
completeness. If further information is needed to confirm or disprove 
the allegations, additional investigation should be requested. The 
commander of the duty organization shall insure that the parent 
Component of the individual concerned is informed promptly concerning 
the derogatory information developed and any actions taken or 
anticipated with respect thereto. However, referral of derogatory 
information to the commander or security officer shall in no way affect 
or limit the responsibility of the central adjudication facility to 
continue to process the individual for denial or revocation of clearance 
or access to classified information, in accordance with Sec. 154.56(b), 
if such action is warranted and supportable by the criteria and policy 
contained in Sec. 154.7(a) and Appendix H. No unfavorable administrative 
action as defined in Sec. 154.3 may be taken by the organization to 
which the individual is assigned for duty without affording the person 
the full range of protections contained in Sec. 154.56(b) or, in the 
case of SCI, Annex B, DCID 1/14.
    (2) The Director DIS shall establish appropriate alternative means 
whereby information with potentially serious security significance can 
be reported other than through DoD command or industrial organization 
channels. Such access shall include utilization of the DoD Inspector 
General ``hotline'' to receive such reports for appropriate follow-up by 
DIS. DoD Components and industry will assist DIS in publicizing the 
availability of appropriate reporting channels. Additionally, DoD 
Components will augment the system when and where necessary. Heads of 
DoD Components will be notified immediately to take action if 
appropriate.
    (c) Suspension.
    (1) The commander or head of the organization shall determine 
whether, on

[[Page 742]]

the basis of all facts available upon receipt of the initial derogatory 
information, it is in the interests of national security to continue 
subject's security status unchanged or to take interim action to suspend 
subject's access to classified information or assignment to sensitive 
duties (or other duties requiring a trustworthiness determination), if 
information exists which raises serious questions as to the individual's 
ability to intent to protect classified information or execute sensitive 
duties (or other duties requiring a trustworthiness determination) until 
a final determination is made by the appropriate authority designated in 
appendix F to this part.
    (2) Whenever a determination is made to suspend a security clearance 
for access to classified information or assignment to sensitive duties 
(or other duties requiring a trustworthiness determination), the 
individual concerned must be notified of the determination in writing by 
the commander, or head of the component or adjudicative authority, to 
include a brief statement of the reason(s) for the suspension action 
consistent with the interests of national security.
    (3) Component field elements must promptly report all suspension 
actions to the appropriate central adjudicative authority, but not later 
than 10 working days from the date of the suspension action. The 
adjudicative authority will immediately update the DCII Eligibility and 
Access fields to alert all users to the individual's changed status.
    (4) Every effect shall be made to resolve suspension cases as 
expeditiously as circumstances permit. Suspension cases exceeding 180 
days shall be closely monitored and managed by the DoD Component 
concerned until finally resolved. Suspension cases pending in excess of 
12 months will be reported to the DASD(CI&SCM) for review and 
appropriate action.
    (5) A final security clearance eligibility determination shall be 
made for all suspension actions and the determination entered in the 
DCII. If, however, the individual under suspension leaves the 
jurisdiction of the Department of Defense and no longer requires a 
clearance (or trustworthiness determination), entry of the ``Z'' Code 
(adjudication action incomplete due to loss of jurisdiction) if the 
clearance eligibility field is appropriate. In no case shall a 
``suspension'' code (Code Y) remain as a permanent record in the DCII.
    (6) A clearance or access entry in the DCII shall not be suspended 
or downgraded based solely on the fact that a periodic reinvestigation 
was not conducted precisely within the 5 year time period for TOP 
SECRET/SCI or within the period prevailing for SECRET clearances under 
departmental policy. While every effort should be made to ensure that 
PRs are conducted within the prescribed time frame, agencies must be 
flexible in their administration of this aspect of the personnel 
security program so as not to undermine the ability of the Department of 
Defense to accomplish its mission.
    (d) Final unfavorable administrative actions. The authority to make 
personnel security determinations that will result in an unfavorable 
administrative action is limited to those authorities designated in 
Appendix E, except that the authority to terminate the employment of a 
civilian employee of a military department or Defense agency is vested 
solely in the head of the DoD component concerned and in such other 
statutory official as may be designated. Action to terminate civilian 
employees of the Office of the Secretary of Defense and DoD Components, 
on the basis of criteria listed in Sec. 154.7 (a) through (f), shall be 
coordinated with the Deputy Under Secretary of Defense for Policy prior 
to final action by the head of the DoD Component. DoD civilian employees 
or members of the Armed Forces shall not be removed from employment or 
separated from the Service under provisions of this part if removal or 
separation can be effected under OPM regulations or administrative 
(nonsecurity) regulations of the military departments. However, actions 
contemplated in this regard shall not affect or limit the responsibility 
of the central adjudication facility to continue for process the 
individual for denial or revocation of a security clearance, access to

[[Page 743]]

classified information on or assignment to a sensitive position if 
warranted and supportable by the criteria and standards contained in 
this part.
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61025, Nov. 19, 1993]



Sec. 154.56  Procedures.

    (a) General. No final personnel security determination shall be made 
on a member of the Armed Forces, an employee of the Department of 
Defense, a consultant to the Department of Defense, or any other person 
affiliated with the Department of Defense without granting the 
individual concerned the procedural benefits set forth in paragraph (b) 
of this section when such determination results in an unfavorable 
administrative action (see Sec. 154.55(a)). As an exception, Red Cross/
United Service Organizations employees shall be afforded the procedures 
prescribed by 32 CFR part 253.
    (b) Unfavorable administrative action procedures. Except as provided 
for below, no unfavorable administrative action shall be taken under the 
authority of this part unless the person concerned has been given:
    (1) A written statement of the reasons why the unfavorable 
administrative action is being taken. The statement shall be as 
comprehensive and detailed as the protection of sources afforded 
confidentiality under the provisions of the Privacy Act of 1974 (5 
U.S.C. 552a) and national security permit. The statement will also 
provide the name and address of the agencies (agencies) to which the 
individual may write to obtain a copy of the investigative file(s) upon 
which the unfavorable administrative action is being taken. Prior to 
issuing a statement of reasons to a civilian employee for suspension or 
removal action, the issuing authority must comply with the provisions of 
Federal Personnel Manual, chapter 732, subchapter 1, paragraph 1-6b. The 
signature authority must be as provided for in Sec. 154.41(b) (1)(ii) 
and (2)(ii).
    (2) An opportunity to reply in writing to such authority as the head 
of the Component concerned may designate;
    (3) A written response to any submission under subparagraph b. 
stating the final reasons therefor, which shall be as specific as 
privacy and national security considerations permit. The signature 
authority must be as provided for in Sec. 154.41(b) (1)(ii) and (2)(ii). 
Such response shall be as prompt as individual circumstances permit, not 
to exceed 60 days from the date of receipt of the appeal submitted under 
paragraph (b)(2) of this section provided no additional investigative 
action is necessary. If a final response cannot be completed within the 
time frame allowed, the subject must be notified in writing of this 
fact, the reasons therefor, and the date a final response is expected, 
which shall not, in any case, exceed a total of 90 days from the date of 
receipt of the appeal under paragraph (b) of this section.
    (4) An opportunity to appeal to a higher level of authority 
designated by the Component concerned.
    (c) Exceptions to policy. Notwithstanding paragraph (b) of this 
section or any other provision of this part, nothing in this part shall 
be deemed to limit or affect the responsibility and powers of the 
Secretary of Defense to find that a person is unsuitable for entrance or 
retention in the Armed Forces, or is ineligible for a security clearance 
or assignment to sensitive duties, if the national security so requires, 
pursuant to section 7532, title 5, U.S. Code. Such authority may not be 
delegated and may be exercised only when it is determined that the 
procedures prescribed in paragraph (b) of this section are not 
appropriate. Such determination shall be conclusive.
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61025, Nov. 19, 1993]



Sec. 154.57  Reinstatement of civilian employees.

    (a) General. Any person whose civilian employment in the Department 
of Defense is terminated under the provisions of this part shall not be 
reinstated or restored to duty or reemployed in the Department of 
Defense unless the Secretary of Defense, or the head of a DoD Component, 
finds that such reinstatement, restoration, or reemployment is clearly 
consistent with the interests of national security. Such a finding shall 
be made a part of the personnel security record.
    (b) Reinstatement benefits. A DoD civilian employee whose employment 
has

[[Page 744]]

been suspended or terminated under the provisions of this part and who 
is reinstated or restored to duty under the provisions of section 3571 
of title 5 U.S. Code is entitled to benefits as provided for by section 
3 of Pub. L. 89-380.



             Subpart I--Continuing Security Responsibilities



Sec. 154.60  Evaluating continued security eligibility.

    (a) General. A personnel security determination is an effort to 
assess the future trustworthiness of an individual in terms of the 
likelihood of the individual preserving the national security. Obviously 
it is not possible at a given point to establish with certainty that any 
human being will remain trustworthy. Accordingly the issuance of a 
personnel security clearance or the determination that a person is 
suitable for assignment to sensitive duties cannot be considered as a 
final personnel security action. Rather, there is the clear need to 
assure that, after the personnel security determination is reached, the 
individual's trustworthiness is a matter of continuing assessment. The 
responsibility for such assessment must be shared by the organizational 
commander or manager, the individual's supervisor and, to a large 
degree, the individual himself. Therefore, the heads of DoD Components 
shall establish and maintain a program designed to evaluate on a 
continuing basis the status of personnel under their jurisdiction with 
respect to security eligibility. This program should insure close 
coordination between security authorities and personnel, medical, legal 
and supervisory personnel to assure that all pertinent information 
available within a command is considered in the personnel security 
process.
    (b) Management responsibility. (1) Commanders and heads of 
organizations shall insure that personnel assigned to sensitive duties 
(or other duties requiring a trustworthiness determination under the 
provisions of this part) are initially indoctrinated and periodically 
instructed thereafter on the national security implication of their 
duties and on their individual responsibilities.
    (2) The heads of all DoD components are encouraged to develop 
programs designed to counsel and assist employees in sensitive positions 
who are experiencing problems in their personal lives with respect to 
such areas as financial, medical or emotional difficulties. Such 
initiatives should be designed to identify potential problem areas at an 
early stage so that any assistance rendered by the employing activity 
will have a reasonable chance of precluding long term, job-related 
security problems.
    (c) Supervisory responsibility. Security programs shall be 
established to insure that supervisory personnel are familiarized with 
their special responsibilities in matters pertaining to personnel 
security with respect to personnel under their supervision. Such 
programs shall provide practical guidance as to indicators that may 
signal matters of personnel security concern. Specific instructions 
should be disseminated concerning reporting procedures to enable the 
appropriate authority to take timely corrective action to protect the 
interests of national security as well as to provide any necessary help 
to the individual concerned to correct any personal problem which may 
have a bearing upon the individual's continued eligibility for access.
    (1) In conjunction with the submission of PRs stated in Sec. 154.19, 
and paragraph 5, Appendix A, supervisors will be required to review an 
individual's DD Form 398 to ensure that no significant adverse 
information of which they are aware and that may have a bearing on 
subject's continued eligibility for access to classified information is 
omitted.
    (2) If the supervisor is not aware of any significant adverse 
information that may have a bearing on the subject's continued 
eligibility for access, then the following statement must be documented, 
signed and dated, and forwarded to DIS with the investigative package.

    I am aware of no information of the type contained at Appendix D, 32 
CFR part 154, relating to subject's trustworthiness, reliability, or 
loyalty that may reflect adversely on his/her ability to safeguard 
classified information.

[[Page 745]]

    (3) If the supervisor is aware of such significant adverse 
information, the following statement shall be documented, signed and 
dated and forwarded to DIS with the investigative package, and a written 
summary of the derogatory information forwarded to DIS with the 
investigative package:

    I am aware of information of the type contained in Appendix D, 32 
CFR part 154, relating to subject's trustworthiness, reliability, or 
loyalty that may reflect adversely on his/her ability to safeguard 
classified information and have reported all relevant details to the 
appropriate security official(s).

    (4) In conjunction with regularly scheduled fitness and performance 
reports of military and civilian personnel whose duties entail access to 
classified information, supervisors will include a comment in accordance 
with paragraphs (c) (2) and (3) of this section as well as a comment 
regarding an employee's discharge of security responsibilities, pursuant 
to their Component guidance.
    (d) Individual responsibility. (1) Individuals must familiarize 
themselves with pertinent security regulations that pertain to their 
assigned duties. Further, individuals must be aware of the standards of 
conduct required of persons holding positions of trust. In this 
connection, individuals must recognize and avoid the kind of personal 
behavior that would result in rendering one ineligible for continued 
assignment in a position of trust. In the final analysis, the ultimate 
responsibility for maintaining continued eligibility for a position of 
trust rests with the individual.
    (2) Moreover, individuals having access to classified information 
must report promptly to their security office:
    (i) Any form of contact, intentional or otherwise, with individuals 
of any nationality, whether within or outside the scope of the 
employee's official activities, in which:
    (A) Illegal or unauthorized access is sought to classified or 
otherwise sensitive information.
    (B) The employee is concerned that he or she may be the target of 
exploitation by a foreign entity.
    (ii) Any information of the type referred to in Sec. 154.7 or 
appendix H to this part.
    (e) Co-worker responsibility. Co-workers have an equal obligation to 
advise their supervisor or appropriate security official when they 
become aware of information with potentially serious security 
significance regarding someone with access to classified information or 
employed in a sensitive position.
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61025, Nov. 19, 1993]



Sec. 154.61  Security education.

    (a) General. The effectiveness of an individual in meeting security 
responsibilities is proportional to the degree to which the individual 
understands them. Thus, an integral part of the DoD security program is 
the indoctrination of individuals on their security responsibilities. 
Moreover, such indoctrination is essential to the efficient functioning 
of the DoD personnel security program. Accordingly, heads of DoD 
Components shall establish procedures in accordance with this chapter 
whereby persons requiring access to classified information, or being 
assigned to positions that require the occupants to be determined 
trustworthy are periodically briefed as to their security 
responsibilities.
    (b) Initial briefing. (1) All persons cleared for access to 
classified information or assigned to duties requiring a trustworthiness 
determination under this part shall be given an initial security 
briefing. The briefing shall be in accordance with the requirements of 
32 CFR part 159 and consist of the following elements:
    (i) The specific security requirements of their particular job.
    (ii) The techniques employed by foreign intelligence activities in 
attempting to obtain classified information and their responsibility for 
reporting such attempts.
    (iii) The prohibition against disclosing classified information, by 
any means, to unauthorized persons or discussing or handling classified 
information in a manner that would make it accessible to unauthorized 
persons.
    (iv) The penalties that may be imposed for security violations.
    (2) If an individual declines to execute Standard Form 312, 
``Classified Information Nondisclosure Agreement''

[[Page 746]]

(replaced the Standard Form 189), the DoD Component shall initiate 
action to deny or revoke the security clearance of such person in 
accordance with Sec. 154.56(b).
    (c) Refresher briefing. Programs shall be established to provide, at 
a minimum, annual security training for personnel having continued 
access to classified information. The elements outlined in 32 CFR part 
159 shall be tailored to fit the needs of experienced personnel.
    (d) Foreign travel briefing. While world events during the past 
several years have diminished the threat to our national security from 
traditional cold-war era foreign intelligence services, foreign 
intelligence service continue to pursue the unauthorized acquisition of 
classified or otherwise sensitive U.S. Government information, through 
the recruitment of U.S. Government employees with access to such 
information. Through security briefings and education, the Department of 
Defense continues to provide for the protection of information and 
technology considered vital to the national security interests from 
illegal or unauthorized acquisition by foreign intelligence services.
    (1) DoD Components will establish appropriate internal procedures 
requiring all personnel possessing a DoD security clearance to report to 
their security office all contacts with individuals of any nationality, 
whether within or outside the scope of the employee's official 
activities, in which:
    (i) Illegal or unauthorized access is sought to classified or 
otherwise sensitive information.
    (ii) The employee is concerned that he or she may be the target of 
exploitation by a foreign entity.
    (2) The DoD security manager, security specialist or other qualified 
individual will review and evaluate the reported information. Any facts 
or circumstances of a reported contact with a foreign national that 
appear to:
    (i) Indicate an attempt or intention to obtain unauthorized access 
to proprietary, sensitive, or classified information or technology;
    (ii) Offer a reasonable potential for such; or
    (iii) Indicate the possibility of continued contact with the foreign 
national for such purposes, shall be promptly reported to the 
appropriate counterintelligence agency.
    (e) Termination briefing. (1) Upon termination of employment 
administrative withdrawal of security clearance, or contemplated absence 
from duty or employment for 60 days or more, DoD military personnel and 
civilian employees shall be given a termination briefing, return all 
classified material, and execute a Security Termination Statement. This 
statement shall include:
    (i) An acknowledgment that the individual has read the appropriate 
provisions of the Espionage Act, other criminal statutes, DoD 
Regulations applicable to the safeguarding of classified information to 
which the individual has had access, and understands the implications 
thereof;
    (ii) A declaration that the individual no longer has any documents 
or material containing classified information in his or her possession;
    (iii) An acknowledgment that the individual will not communicate or 
transmit classified information to any unauthorized person or agency; 
and
    (iv) An acknowledgment that the individual will report without delay 
to the FBI or the DoD Component concerned any attempt by any 
unauthorized person to solicit classified information.
    (2) When an individual refuses to execute a Security Termination 
Statement, that fact shall be reported immediately to the security 
manager of the cognizant organization concerned. In any such case, the 
individual involved shall be debriefed orally. The fact of a refusal to 
sign a Security Termination Statement shall be reported to the Director, 
Defense Investigative Service who shall ensure that it is recorded in 
the Defense Clearance and Investigations Index.
    (3) The Security Termination Statement shall be retained by the DoD 
Component that authorized the individual access to classified 
information for the period specified in the Component's records 
retention schedules, but

[[Page 747]]

for a minimum of 2 years after the individual is given a termination 
briefing.
    (4) In addition to the provisions of paragraphs (e)(1), (e)(2), and 
(e)(3) of this section, DoD Components shall establish a central 
authority to be responsible for ensuring that Security Termination 
Statements are executed by senior personnel (general officers, flag 
officers and GS-16s and above). Failure on the part of such personnel to 
execute a Security Termination Statement shall be reported immediately 
to the Deputy Under Secretary of Defense for Policy.
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61026, Nov. 19, 1993]



    Subpart J--Safeguarding Personnel Security Investigative Records



Sec. 154.65  General.

    In recognition of the sensitivity of personnel security reports and 
records, particularly with regard to individual privacy, it is 
Department of Defense policy that such personal information shall be 
handled with the highest degree of discretion. Access to such 
information shall be afforded only for the purpose cited herein and to 
persons whose official duties require such information. Personnel 
security investigative reports may be used only for the purposes of 
determining eligibility of DoD military and civilian personnel, 
contractor employees, and other persons affiliated with the Department 
of Defense, for access to classified information, assignment or 
retention in sensitive duties or other specifically designated duties 
requiring such investigation, or for law enforcement and 
counterintelligence investigations. Other uses are subject to the 
specific written authorization of the Deputy Under Secretary of Defense 
for Policy.



Sec. 154.66  Responsibilities.

    DoD authorities responsible for administering the DoD personnel 
security program and all DoD personnel authorized access to personnel 
security reports and records shall ensure that the use of such 
information is limited to that authorized by this part and that such 
reports and records are safeguarded as prescribed herein. The heads of 
DoD Components and the Deputy Under Secretary of Defense for Policy for 
the Office of the Secretary of Defense shall establish internal controls 
to ensure adequate safeguarding and limit access to and use of personnel 
security reports and records as required by Secs. 154.67 and 154.68.



Sec. 154.67  Access restrictions.

    Access to personnel security investigative reports and personnel 
security clearance determination information shall be authorized only in 
accordance with 32 CFR parts 286 and 286a and with the following:
    (a) DoD personnel security investigative reports shall be released 
outside of the DoD only with the specific approval of the investigative 
agency having authority over the control and disposition of the reports.
    (b) Within DoD, access to personnel security investigative reports 
shall be limited to those designated DoD officials who require access in 
connection with specifically assigned personnel security duties, or 
other activities specifically identified under the provisions of 
Sec. 154.65.
    (c) Access by subjects of personnel security investigative reports 
shall be afforded in accordance with 32 CFR part 286a.
    (d) Access to personnel security clearance determination information 
shall be made available, other than provided for in paragraph (c) of 
this section, through security channels, only to DoD or other officials 
of the Federal Government who have an official need for such 
information.



Sec. 154.68  Safeguarding procedures.

    Personnel security investigative reports and personnel security 
determination information shall be safeguarded as follows:
    (a) Authorized requesters shall control and maintain accountability 
of all reports of investigation received.
    (b) Reproduction, in whole or in part, of personnel security 
investigative reports by requesters shall be restricted to the minimum 
number of copies required for the performance of assigned duties.

[[Page 748]]

    (c) Personnel security investigative reports shall be stored in a 
vault, safe, or steel file cabinet having at least a lockbar and an 
approved three-position dial-type combination padlock or in a similarly 
protected area/container.
    (d) Reports of DoD personnel security investigations shall be sealed 
in double envelopes or covers when transmitted by mail or when carried 
by persons not authorized access to such information. The inner cover 
shall bear a notation substantially as follows:

    TO BE OPENED ONLY BY OFFICIALS DESIGNATED TO RECEIVE REPORTS OF 
                    PERSONNEL SECURITY INVESTIGATION

    (e) An individual's status with respect to a personnel security 
clearance or a Special Access authorization is to be protected as 
provided for in 32 CFR part 286.



Sec. 154.69  Records disposition.

    (a) Personnel security investigative reports, to include OPM NACIs 
may be retained by DoD recipient organizations, only for the period 
necessary to complete the purpose for which it was originally requested. 
Such reports are considered to be the property of the investigating 
organization and are on loan to the recipient organization. All copies 
of such reports shall be destroyed within 90 days after completion of 
the required personnel security determination. Destruction shall be 
accomplished in the same manner as for classified information in 
accordance with 32 CFR part 159.
    (b) DoD record repositories authorized to file personnel security 
investigative reports shall destroy PSI reports of a favorable or of a 
minor derogatory nature 15 years after the date of the last action. That 
is, after the completion date of the investigation or the date on which 
the record was last released to an authorized user--whichever is later. 
Personnel security investigative reports resulting in an unfavorable 
administrative personnel action or court-martial or other investigations 
of a significant nature due to information contained in the 
investigation shall be destroyed 25 years after the date of the last 
action. Files in this latter category that are determined to be of 
possible historical value and those of widespread public or 
congressional interest may be offered to the National Archives after 15 
years.
    (c) Personnel security investigative reports on persons who are 
considered for affiliation with DoD will be destroyed after 1 year if 
the affiliation is not completed.



Sec. 154.70  Foreign source information.

    Information that is classified by a foreign government is exempt 
from public disclosure under the Freedom of Information and Privacy 
Acts. Further, information provided by foreign governments requesting an 
express promise of confidentiality shall be released only in a manner 
that will not identify or allow unauthorized persons to identify the 
foreign agency concerned.



                      Subpart K--Program Management



Sec. 154.75  General.

    To ensure uniform implementation of the DoD personnel security 
program throughout the Department, program responsibility shall be 
centralized at DoD Component level.



Sec. 154.76  Responsibilities.

    (a) The Assistant Secretary of Defense for Command, Control, 
Communications, and Intelligence (ASD(C31)) shall have primary 
responsibility for providing guidance, oversight, development and 
approval for policy and procedures governing personnel security program 
matters within the Department:
    (1) Provide program management through issuance of policy and 
operating guidance.
    (2) Provide staff assistance to the DoD Components and defense 
agencies in resolving day-to-day security policy and operating problems.
    (3) Conduct inspections of the DoD Components for implementation and 
compliance with DoD security policy and operating procedures.
    (4) Provide policy, oversight, and guidance to the component 
adjudication functions.
    (5) Approve, coordinate and oversee all DoD personnel security 
research initiatives and activities.

[[Page 749]]

    (b) The General Counsel shall ensure that the program is 
administered in a manner consistent with the laws; all proceedings are 
promptly initiated and expeditiously completed; and that the rights of 
individuals involved are protected, consistent with the interests of 
national security. The General Counsel shall also ensure that all 
relevant decisions of the courts and legislative initiatives of the 
Congress are obtained on a continuing basis and that analysis of the 
foregoing is accomplished and disseminated to DoD personnel security 
program management authorities.
    (c) The Heads of the Components shall ensure that:
    (1) The DoD personnel security program is administered within their 
area of responsibility in a manner consistent with this part.
    (2) A single authority within the office of the head of the DoD 
Component is assigned responsibility for administering the program 
within the Component.
    (3) Information and recommendations are provided the Assistant 
Secretary of Defense for Command, Control, Communications, and 
Intelligence (ASD(C31)) and the General Counsel at their request 
concerning any aspect of the program.
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61026, Nov. 19, 1993]



Sec. 154.77  Reporting requirements.

    (a) The OASD(C31) shall be provided personnel security program 
management data by the Defense Data Manpower Center (DMDC) by December 
31 each year for the preceding fiscal year. To facilitate accurate 
preparation of this report, all adjudicative determinations must be 
entered into the DC11 by all DoD central adjudication facilities no 
later than the end of the fiscal year. The information required below is 
essential for basic personnel security program management and in 
responding to requests from the Secretary of Defense and Congress. The 
report shall cover the preceding fiscal year, broken out by clearance 
category, according to military (officer or enlisted), civilian or 
contractor status and by the central adjudication facility that took the 
action, using the enclosed format:
    (1) Number of Top Secret, Secret, and Confidential clearances 
issued;
    (2) Number of Top Secret, Secret, and Confidential clearances 
denied;
    (3) Number of Top Secret, Secret, and Confidential clearances 
revoked;
    (4) Number of SCI access determinations issued;
    (5) Number of SCI access determinations denied;
    (6) Number of SCI access determinations revoked; and
    (7) Total number of personnel holding a clearance for Top Secret, 
Secret, Confidential and Sensitive Compartmented Information as of the 
end of the fiscal year.
    (b) The Defense Investigative Service (DIS) shall provide the 
OASD(C3I) a quarterly report that reflects investigative cases opened 
and closed during the most recent quarter, by case category type, and by 
major requester. The information provided by DIS is essential for 
evaluating statistical data regarding investigative workload and the 
manpower required to perform personnel security investigations. Case 
category types include National Agency Checks (NACs); Expanded NACs; 
Single Scope Background Investigations (SSBIs), Periodic 
Reinvestigations (PRs); Secret Periodic Reinvestigations (SPRs); Post 
Adjudicative (PA); Special Investigative Inquiries (SIIs); and Limited 
Inquiries (LIs). This report shall be forwarded to OASD(C3I) within 45 
days after the end of each quarter.
    (c) The reporting requirement for DMDC and DIS has been assigned 
Report Control Symbol DD-C3I(A) 1749.
[58 FR 61026, Nov. 19, 1993]



Sec. 154.78  Inspections.

    The heads of DoD Components shall assure that personnel security 
program matters are included in their administrative inspection 
programs.

               Appendix A to Part 154--Investigative Scope

    This appendix prescribes the scope of the various types of personnel 
security investigations.
    1. National Agency Check (NAC). Components of a NAC. At a minimum, 
the first three of the described agencies (DCII, FBI/HQ, and FBI/ID) 
below shall be included in

[[Page 750]]

each complete NAC; however, a NAC may also include a check of any or all 
of the other described agencies, if appropriate.
    a. DCII records consist of an alphabetical index of personal names 
and impersonal titles that appear as subjects or incidentals in 
investigative documents held by the criminal, counterintelligence, 
fraud, and personnel security investigative activities of the three 
military departments, DIS, Defense Criminal Investigative Service 
(DCIS), and the National Security Agency. DCII records will be checked 
on all subjects of DoD investigations.
    b. FBI/HQ has on file copies of investigations conducted by the FBI. 
The FBI/HQ check, included in every NAC, consists of a review of files 
for information of a security nature and that developed during 
applicant-type investigations.
    c. An FBI/ID check, included in every NAC (but not ENTNAC), is based 
upon a technical fingerprint search that consists of a classification of 
the subject's fingerprints and comparison with fingerprint cards 
submitted by law enforcement activities. If the fingerprint card is not 
classifiable, a ``name check only'' of these files is automatically 
conducted.
    d. OPM. The files of OPM contain the results of investigations 
conducted by OPM under Executive Orders 9835 and 10450, those requested 
by the Nuclear Regulatory Commission (NRC), the Department of Energy 
(DOE) and those requested since August 1952 to serve as a basis for 
``Q'' clearances. Prior to that date, ``Q'' clearance investigations 
were conducted by the FBI. A ``Q'' clearance is granted to individuals 
who require access to DOE information. In order to receive a ``Q'' 
clearance, a full field background investigation must be completed on 
the individual requiring access in accordance with the Atomic Energy Act 
of 1954. Also on file are the results of investigations on the operation 
of the Merit System, violations of the Veterans Preference Act, appeals 
of various types, fraud and collusion in Civil Service examinations and 
related matters, data on all Federal employment, and an index of all BIs 
on civilian employees or applicants completed by agencies of the 
Executive Branch of the U.S. Government. The OPM files may also contain 
information relative to U.S. citizens who are, or who were, employed by 
a United Nations organization or other public international organization 
such as the Organization of American States. OPM records are checked on 
all persons who are, or who have been, civilian employees of the U.S. 
Government; or U.S. citizens who are, or who have been, employed by a 
United Nations organization or other public international organization; 
and on those who have been granted security clearances by the NRC or 
DOE.
    e. Immigration and Naturalization Service (I&NS). The files of I&NS 
contain (or show where filed) naturalization certificates, certificates 
of derivative citizenship, all military certificates of naturalization, 
repatriation files, petitions for naturalization and declaration of 
intention, visitors' visas, and records of aliens (including government 
officials and representatives of international organizations) admitted 
temporarily into the U.S. I&NS records are checked when the subject is:
    (1) An alien in the U.S., or
    (2) A naturalized citizen whose naturalization has not been 
verified, or
    (3) An immigrant alien, or
    (4) A U.S. citizen who receives derivative citizenship through the 
naturalization of one or both parents, provided that such citizenship 
has not been verified in a prior investigation.
    f. State Department. The State Department maintains the following 
records:
    (1) Security Division (S/D) files contain information pertinent to 
matters of security, violations of security, personnel investigations 
pertinent to that agency, and correspondence files from 1950 to date. 
These files are checked on all former State Department employees.
    (2) Passport Division (P/D) shall be checked if subject indicates 
U.S. citizenship due to birth in a foreign country of American parents. 
This is a check of State Department Embassy files to determine if 
subject's birth was registered at the U.S. Embassy in the country where 
he was born. Verification of this registration is verification of 
citizenship.
    g. Central Intelligence Agency (CIA). The files of CIA contain 
information on present and former employees, including members of the 
Office of Strategic Services (OSS), applicants for employment, foreign 
nationals, including immigrant aliens in the U.S., and U.S. citizens 
traveling outside the U.S. after July 1, 1946. These files shall be 
checked under the following guidelines.

                                                                        
------------------------------------------------------------------------
            Investigation                   Criteria for CIA Checks     
------------------------------------------------------------------------
NAC, DNACI or ENTNAC................  Residence anywhere outside of the 
                                       U.S. for a year or more since age
                                       18 except under the auspices of  
                                       the U.S. Government; and, travel,
                                       education, residence, or         
                                       employment since age 18 in any   
                                       designated country (Appendix G). 
BI..................................  Same as NAC, DNACI, and ENTNAC    
                                       requirements plus travel,        
                                       residence, employment, and       
                                       education outside the U.S. for   
                                       more than a continuous 3-month   
                                       period during the past 5 years,  
                                       or since age 18, except when     
                                       under the auspices of the        
                                       Government.                      

[[Page 751]]

                                                                        
SBI.................................  Same as BI requirements except the
                                       period of the investigation will 
                                       cover the past 15 years, or since
                                       age 18. Also when subject's      
                                       employment, education or         
                                       residence has occurred overseas  
                                       for a period of more than one    
                                       year under the auspices of the   
                                       U.S. Government, such checks will
                                       be made.                         
------------------------------------------------------------------------

    These files shall also be checked if subject has been an employee of 
CIA or when other sources indicate that CIA may have pertinent 
information.
    h. Military Personnel Record Center files are maintained by separate 
departments of the Armed Forces, General Services Administration and the 
Reserve Records Centers. They consist of the Master Personnel Records of 
retired, separated, reserve, and active duty members of the Armed Force. 
These records shall be checked when the requester provides required 
identifying data indicating service during the last 15 years.
    i. Treasury Department. The files of Treasury Department agencies 
(Secret Service, Internal Revenue Service, and Bureau of Customs) will 
be checked only when available information indicates that an agency of 
the Treasury Department may be reasonably expected to have pertinent 
information.
    j. The files of other agencies such as the National Guard Bureau, 
the Defense Industrial Security Clearance Office (DISCO), etc., will be 
checked when pertinent to the purpose for which the investigation is 
being conducted.
    2. DoD National Agency Check plus Written Inquires (DNACI):
    a. Scope: The time period covered by the DNACI is limited to the 
most recent five (5) years, or since the 18th birthday, whichever is 
shorter, provided that the investigation covers at least the last two 
(2) full years of the subject's life, although it may be extended to the 
period necessary to resolve any questionable or derogatory information. 
No investigation will be conducted prior to an individual's 16th 
birthday. All DNACI investigation information will be entered on the DD 
Form 398-2 and FD-Form 258 and forwarded to the Defense Investigative 
Service (paragraph D, Appendix B).
    b. Components of a DNACI:
    (1) NAC. This is the same as described in paragraph 1, above.
    (2) Credit. (a) A credit bureau check will be conducted to cover the 
50 States, the District of Columbia, Puerto Rico, Guam, and the Virgin 
Islands, at all locations where subject has resided (including duty 
stations and home ports), been employed, or attended school for 6 months 
(cumulative) during the past five (5) years.
    (b) When information developed reflects unfavorably upon a person's 
current credit reputation or financial responsibility, the investigation 
will be expanded as necessary.
    (3) Employment.--(a) Non-Federal Employment. (1) Verify, via written 
inquiry, all employment within the period of investigation with a 
duration of six (6) months or more. Current employment will be checked 
regardless of duration.
    (2) If all previous employments have been less than 6 months long, 
the most recent employment, in addition to the current, will be checked 
in all cases.
    (3) Seasonal holiday, part-time and temporary employment need not be 
checked unless subparagraph 2 above applies.
    (b) Federal employment. All Federal employment (to include military 
assignments) within the period of investigation will be verified by the 
requester through locally available records, and a statement reflecting 
that such checks have been favorably accomplished will be contained in 
the investigative request. Those that cannot be verified in this fashion 
will be accomplished via written inquiry by DIS (within the 50 United 
States, Puerto Rico, Guam, and the Virgin Islands).
    3. Background Investigation (BI). The period of investigation for 
the BI is 5 years and applies to military, civilian, and contractor 
personnel.
    a. NAC. See paragraph 1, above.
    b. Local Agency Checks (LAC). Same as paragraph 4j, below, except 
period of coverage is five years.
    c. Credit checks. Same as paragraph 4i, below.
    d. SUBJECT Interview (SI). This is the principal component of a BI. 
In some instances an issue will arise after the primary SI and a 
secondary interview will be conducted. Interviews in the latter category 
are normally ``issue'' interviews that will be reported in the standard 
BI narrative format.
    e. Employment records. Employment records will be checked at all 
places where employment references are interviewed with the exception of 
current Federal employment when the requester indicates that such 
employment has been verified with favorable results.
    f. Employment reference coverage. A minimum of three references, 
either supervisors or co-workers, who have knowledge of the SUBJECT's 
activities in the work environment will be interviewed. At least one 
employment reference at the current place of employment will always be 
interviewed with the exception of an individual attending military basic 
training, or other military training schools lasting less than 90 days. 
However, if the SUBJECT has only been at the current employment for less 
than 6 months, it will be necessary to go not only to his or her current 
employment (for example, for one employment reference) but also to the 
preceding employment of at least 6

[[Page 752]]

months for additional employment references. If the SUBJECT has not had 
prior employment of at least 6 months, interview(s) will be conducted at 
the most recent short-term employment in addition to the current 
employment.
    g. Developed and Listed Character References. A minimum of three 
developed character references (DCR) whose combined association with the 
SUBJECT covers the entire period of investigation will be interviewed. 
If coverage cannot be obtained through the DCRs, listed character 
reference (LCR) will be contacted to obtain coverage.
    h. Unfavorable information. Unfavorable information developed in the 
field will be expanded.
    4. Special Background Investigation (SBI)-- a. Components of an SBI. 
The period of investigation for an SBI is the last 15 years or since the 
18th birthday, whichever is the shorter period, provided that the 
investigation covers at least the last 2 full years of the subject's 
life. No investigation will be conducted for the period prior to an 
individual's 16th birthday. Emphasis shall be placed on peer coverage 
whenever interviews are held with personal sources in making education, 
employment, and reference (including developed) contact.
    b. NAC. In addition to conducting a NAC on the subject of the 
investigation, the following additional requirements apply.
    (1) A DCII, FBI/ID name check only and FBI/HQ check shall be 
conducted on subject's current spouse or cohabitant. In addition, such 
other national agency checks as deemed appropriate based on information 
on the subject's SPH or PSQ shall be conducted.
    (2) A check of FBI/HQ files on members of subject's immediate family 
who are aliens in the U.S. or immigrant aliens who are 18 years of age 
or older shall be conducted. As used throughout the part, members of 
subject's immediate family include the following:
    (a) Current spouse.
    (b) Adult children, 18 years of age or older, by birth, adoption, or 
marriage.
    (c) Natural, adopted, foster, or stepparents.
    (d) Guardians.
    (e) Brothers and sisters either by birth, adoption, or remarriage of 
either parent.
    (3) The files of CIA shall be reviewed on alien members of subject's 
immediate family who are 18 years of age or older, regardless of whether 
or not these persons reside in the U.S.
    (4) I&NS files on members of subject's immediate family 18 years of 
age or older shall be reviewed when they are:
    (a) Aliens in the U.S., or
    (b) Naturalized U.S. citizens whose naturalization has not been 
verified in a prior investigation, or
    (c) Immigrant aliens, or
    (d) U.S. citizens born in a foreign country of American parent(s) or 
U.S. citizens who received derivative citizenship through the 
naturalization of one or both parents, provided that such citizenship 
has not been verified in a prior investigation.
    c. Birth. Verify subject's date and place of birth (DPOB) through 
education, employment and/or other records. Verify through Bureau of 
Vital Statistics (BVS) records if not otherwise verified under d., 
below, or if a variance is developed.
    d. Citizenship. Subject's citizenship status must be verified in all 
cases. U.S. citizens who are subjects of investigation will be required 
to produce documentation that will confirm their citizenship. Normally 
such documentation should be presented to the DoD Component concerned 
prior to the initiation of the request for investigation. When such 
documentation is not readily available, investigative action may be 
initiated with the understanding that the designated authority in the 
DoD Component will be provided with the documentation prior to the 
issuance of a clearance. DIS will not check the BVS for native-born U.S. 
citizens except as indicated in 4.c. above. In the case of foreign-born 
U.S. citizens, DIS will check I&NS records. The citizenship status of 
all foreign-born members of subject's immediate family shall be 
verified. Additionally, when the investigation indicates that a member 
of subject's immediate family has not obtained U.S. citizenship after 
having been eligible for a considerable period of time, an attempt 
should be made to determine the reason. The documents listed below are 
acceptable for proof of U.S. citizenship for personnel security 
determination purposes:
    (1) A birth certificate must be presented if the individual was born 
in the United States. To be acceptable, the certificate must show that 
the birth record was filed shortly after birth and must be certified 
with the registrar's signature and the raised, impressed, or 
multicolored seal of his office except for States or jurisdictions 
which, as a matter of policy, do not issue certificates with a raised or 
impressed seal. Uncertified copies of birth certificates are not 
acceptable.
    (a) A delayed birth certificate (a record filed more than one year 
after the date of birth) is acceptable provided that it shows that the 
report of birth was supported by acceptable secondary evidence of birth 
as described in subparagraph (b), below.
    (b) If such primary evidence is not obtainable, a notice from the 
registrar stating that no birth record exists should be submitted. The 
notice shall be accompanied by the best combination of secondary 
evidence obtainable. Such evidence may include a baptismal certificate, 
a certificate of circumcision, a hospital birth record, affidavits of 
persons having personal knowledge of the facts of the birth, or other 
documentary evidence such as

[[Page 753]]

early census, school, or family bible records, newspaper files and 
insurance papers. Secondary evidence should have been created as close 
to the time of birth as possible.
    (c) All documents submitted as evidence of birth in the United 
States shall be original or certified documents. Uncertified copies are 
not acceptable.
    (2) A certificate of naturalization shall be submitted if the 
individual claims citizenship by naturalization.
    (3) A certificate of citizenship issued by the I&NS shall be 
submitted if citizenship was acquired by birth abroad to a U.S. citizen 
parent or parents.
    (4) A Report of Birth Abroad of A Citizen of The United States of 
America (Form FS-240), a Certification of Birth (Form FS-545 or DS-
1350), or a Certificate of Citizenship is acceptable if citizenship was 
acquired by birth abroad to a U.S. citizen parent or parents.
    (5) A passport or one in which the individual was included will be 
accepted as proof of citizenship.
    e. Education. (1) Verify graduation or attendance at institutions of 
higher learning in the U.S. within the last 15 years, if such attendance 
was not verified during a prior investigation.
    (2) Attempts will be made to review records at overseas educational 
institutions when the subject resided overseas in excess of one year.
    (3) Verify attendance or graduation at the last secondary school 
attended within the past 10 years if there was no attendance at an 
institution of higher learning within the period of investigation.
    (4) Verification of attendance at military academies is only 
required when the subject failed to graduate.
    f. Employment. (1) Non-Federal employment. Verify all employment 
within the period of investigation to include seasonal, holiday, 
Christmas, part-time, and temporary employment. Interview one supervisor 
and one co-worker at subject's current place of employment as well as at 
each prior place of employment during the past 10 years of six months 
duration or longer. The interview requirement for supervisors and co-
workers does not apply to seasonal, holiday, Christmas, part-time, and 
temporary employment (4 months or less) unless there are unfavorable 
issues to resolve or the letter of inquiry provides insufficient 
information.
    (2) Federal employment. All Federal employment will be verified 
within the period of investigation to include Christmas, seasonal 
temporary, summer hire, part-time, and holiday employment. Do not verify 
Federal employment through review of records if already verified by the 
requester. If Federal employment has not been verified by the requester, 
then subject's personnel file at his/her current place of employment 
will be reviewed. All previous Federal employment will be verified 
during this review. In the case of former Federal employees, records 
shall be examined at the Federal Records Center in St. Louis, Missouri. 
Interview one supervisor and one co-worker at all places of employment 
during the past 10 years if so employed for 6 months or more.
    (3) Military employment. Military service for the last 15 years 
shall be verified. The subject's duty station, for the purpose of 
interview coverage, is considered as a place of employment. One 
supervisor and one co-worker shall be interviewed at subject's current 
duty station if subject has been stationed there for 6 months or more; 
additionally, a supervisor and a co-worker at subject's prior duty 
stations where assigned for 6 months or more during the past 10 years 
shall be interviewed.
    (4) Unemployment. Subject's activities during all periods of 
unemployment in excess of 30 consecutive days, within the period of 
investigation, that are not otherwise accounted for shall be verified.
    (5) When an individual has resided outside the U.S. continuously for 
over one year, attempts will be made to confirm overseas employments as 
well as conduct required interviews of a supervisor and co-worker.
    g. References. Three developed character references who have 
sufficient knowledge of subject to comment on his background, 
suitability, and loyalty shall be interviewed personally. Efforts shall 
be made to interview developed references whose combined association 
with subject covers the full period of the investigation with particular 
emphasis on the last 5 years. Employment, education, and neighborhood 
references, in addition to the required ones, may be used as developed 
references provided that they have personal knowledge concerning the 
individual's character, discretion, and loyalty. Listed character 
references will be interviewed only when developed references are not 
available or when it is necessary to identify and locate additional 
developed character references or when it is necessary to verify 
subject's activities (e.g., unemployment).
    h. Neighborhood investigation. Conduct a neighborhood investigation 
to verify each of subject's residences in the U.S. of a period of 6 
months or more on a cumulative basis, during the past 5 years or during 
the period of investigation, whichever is shorter. During each 
neighborhood investigation, interview two neighbors who can verify 
subject's period of residence in that area and who were sufficiently 
acquainted to comment on subject's suitability for a position of trust. 
Neighborhood investigations will be expanded beyond this 5-year period 
only when there is unfavorable information to resolve in the 
investigation.

[[Page 754]]

    i. Credit. Conduct credit bureau check in the 50 States, the 
District of Columbia, Puerto Rico and overseas (where APO/FPO addresses 
are provided) at all places where subject has resided (including duty 
stations and home ports), been employed, or attended school for 6 months 
or more, on a cumulative basis, during the last 7 years or during the 
period of the investigation, whichever is shorter. When coverage by a 
credit bureau is not available, credit references located in that area 
will be interviewed. Financial responsibility, including unexplained 
affluence, will be stressed in all reference interviews.
    j. Local Agency Checks (LAC's). LACs, including State central 
criminal history record repositories, will be conducted on subject at 
all places of residence to include duty stations and/or home ports, in 
the 50 States, the District of Columbia, and Puerto Rico, where 
residence occurred during the past 15 years or during the period of 
investigation, whichever is shorter. If subject's place of employment 
and/or education is serviced by a different law enforcement agency than 
that servicing the area of residence, LACs shall be conducted also in 
these areas.
    k. Foreign travel. If subject has been employed, educated, traveled 
or resided outside of the U.S. for more than 90 days during the period 
of investigation, except under the auspices of the U.S. Government, 
additional record checks during the NAC shall be made in accordance with 
paragraph 1.f. of this Appendix. In addition, the following requirements 
apply:
    (1) Foreign travel not under the auspices of the U.S. Government. 
When employment, education, or residence has occurred overseas for more 
than 90 days during the past 15 years or since age 18, which was not 
under the auspices of the U.S. Government, a check of records will be 
made at the Passport Office of the Department of State, the CIA, and 
other appropriate agencies. Efforts shall be made to develop sources, 
generally in the U.S., who knew the individual overseas to cover 
significant employment, education, or residence and to determine whether 
any lasting foreign contacts or connections were established during this 
period. If the individual has worked or lived outside of the U.S. 
continuously for over one year, the investigation will be expanded to 
cover fully this period through the use of such investigative assets and 
checks of record sources as may be available to the U.S. Government in 
the foreign country in which the individual resided.
    (2) Foreign travel under the auspices of the U.S. Government. When 
employment, education, or residence has occurred overseas for a period 
of more than one year, under the auspices of the U.S. Government, a 
record check will be made at the Passport Office of the Department of 
State, the CIA and other appropriate agencies. Efforts shall be made to 
develop sources (generally in the U.S.) who knew the individual overseas 
to cover significant employment, education, or residence and to 
determine whether any lasting foreign contacts or connections were 
established during this period. Additionally, the investigation will be 
expanded to cover fully this period through the use of such 
investigative assets and checks of record sources as may be available to 
the U.S. Government in the foreign country in which the individual 
resided.
    1. Foreign connections. All foreign connections (friends, relatives, 
and/or business connections) of subject and immediate family in the U.S. 
or abroad, except where such association was the direct result of 
subject's official duties with the U.S. Government, shall be 
ascertained. Investigation shall be directed toward determining the 
significance of foreign connections on the part of subject and the 
immediate family, particularly where the association is or has been with 
persons whose origin was within a country whose national interests are 
inimical to those of the U.S. When subject or his spouse has close 
relatives residing in a Communist-controlled country, or subject has 
resided, visited, or traveled in such a country, not under U.S. 
Government auspices, the provisions of Sec. 154.8(i)(3) of this part 
apply.
    m. Organizations. Efforts will be made during reference interviews 
and record reviews to determine if subject and/or the immediate family 
has, or formerly had, membership in, affiliation with, sympathetic 
association towards, or participated in any foreign or domestic 
organization, association, movement, group, or combination of persons of 
the type described in Sec. 154.7(a) through (d) of this part.
    n. Divorce. Divorces, annulments, and legal separations of subject 
shall be verified only when there is reason to believe that the grounds 
for the action could reflect on subject's suitability for a position of 
trust.
    o. Military service. All military service and types of discharge 
during the last 15 years shall be verified.
    p. Medical records. Medical records shall not be reviewed unless:
    (1) The requester indicates that subject's medical records were 
unavailable for review prior to submitting the request for 
investigation, or
    (2) The requester indicates that unfavorable information is 
contained in subject's medical records, or
    (3) The subject lists one or more of the following on the SPH or 
PSQ:
    (a) A history of mental or nervous disorders.
    (b) That subject is now or has been addicted to the use of habit-
forming drugs such as narcotics or barbiturates or is now or has been a 
chronic user to excess of alcoholic beverages.

[[Page 755]]

    q. Updating a previous investigation to SBI standards. If a previous 
investigation does not substantially meet the minimum standards of an 
SBI or if it is more than 5 years old, a current investigation is 
required but may be limited to that necessary to bring the individual's 
file up to date in accordance with the investigative requirements of an 
SBI. Should new information be developed during the current 
investigation that bears unfavorably upon the individual's activities 
covered by the previous investigation, the current inquiries shall be 
expanded as necessary to develop full details of this new information.
    5. Periodic Reinvestigation (PR). a. Each DoD military, civilian, 
consultant and contractor employee (to include non-U.S. citizens 
(foreign nationals and/or immigrant aliens) holding a limited access 
authorization) occupying a critical sensitive position, possessing a TOP 
SECRET clearance, or occupying a special access program position shall 
be the subject of a PR initiated 5 years from the date of completion of 
the last investigation. The PR shall cover the period of the last 5 
years.
    b. Minimum investigative requirements. A PR shall include the 
following minimum scope.
    (1) NAC. A valid NAC on the SUBJECT will be conducted in all cases. 
Additionally, for positions requiring SCI access, checks of DCII, FBI/
HQ, FBI/ID name check only, and other agencies deemed appropriate, will 
be conducted on the SUBJECT's current spouse or cohabitant, if not 
previously conducted. Additionally, NACs will be conducted on immediate 
family members, 18 years of age or older, who are aliens and/or 
immigrant aliens, if not previously accomplished.
    (2) Credit. Credit bureau checks covering all places where the 
SUBJECT resided for 6 months or more, on a cumulative basis, during the 
period of investigation, in the 50 States, District of Columbia, Puerto 
Rico and overseas (where APO/FPO addresses are provided), will be 
conducted.
    (3) Subject interview. The interview should cover the entire period 
of time since the last investigation, not just the last 5-year period. 
Significant information disclosed during the interview, which has been 
satisfactorily covered during a previous investigation, need not be 
explored again unless additional relevant information warrants further 
coverage. An SI is not required if one of the following conditions 
exists:
    (a) The SUBJECT is aboard a deployed ship or in some remote area 
that would cause the interview to be excessively delayed.
    (b) The SUBJECT is in an overseas location serviced by the State 
Department or the FBI.
    (4) Employment. Current employment will be verified. Military and 
Federal service records will not routinely be checked, if previously 
checked by the requester when PR was originally submitted. Also, 
employment records will be checked wherever employment interviews are 
conducted. Records need be checked only when they are locally available, 
unless unfavorable information has been detected.
    (5) Employment references. Two supervisors or co-workers at the most 
recent place of employment or duty station of 6 months; if the current 
employment is less than 6 months employment reference interviews will be 
conducted at the next prior place of employment, which was at least a 6-
month duration.
    (6) Developed Character References (DCRs). Two developed character 
references who are knowledgeable of the SUBJECT will be interviewed. 
Developed character references who were previously interviewed will only 
be reinterviewed when other developed references are not available.
    (7) Local Agency Checks (LACs). DIS will conduct local agency checks 
on the SUBJECT at all places of residence, employment, and education 
during the period of investigation, regardless of duration, including 
overseas locations.
    (8) Neighborhood Investigation. Conduct a neighborhood investigation 
to verify subjects' current residence in the United States. Two 
neighbors who can verify subject's period of residence in that area and 
who are sufficiently acquainted to comment on the subject's suitability 
for a position of trust will be interviewed. Neighborhood investigations 
will be expanded beyond the current residence when unfavorable 
information arises.
    (9) Ex-spouse interview. If the subject of investigation is 
divorced, the ex-spouse will be interviewed when the date of final 
divorce action is within the period of investigation.
    (10) Select scoping. When the facts of the case warrant, additional 
select scoping will be accomplished, as necessary, to fully develop or 
resolve an issue.
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61026, Nov. 19, 1993]

               Appendix B to Part 154--Request Procedures

    A. General. To conserve investigative resources and to insure that 
personnel security investigations are limited to those essential to 
current operations and are clearly authorized by DoD policies, 
organizations requesting investigations must assure that continuing 
command attention is given to the investigative request process.
    In this connection, it is particularly important that the provision 
of Executive Order 12356 requiring strict limitations on the 
dissemination of official information and material be closely adhered to 
and that investigations requested for issuing clearances

[[Page 756]]

are limited to those instances in which an individual has a clear need 
for access to classified information. Similarly, investigations required 
to determine eligibility for appointment or retention in DoD, in either 
a civilian or military capacity, must not be requested in frequency or 
scope exceeding that provided for in this part.
    In view of the foregoing, the following guidelines have been 
developed to simplify and facilitate the investigative request process:
    1. Limit requests for investigation to those that are essential to 
current operations and clearly authorized by DoD policies and attempt to 
utilize individuals who, under the provisions of this part, have already 
met the security standard;
    2. Assure that military personnel on whom investigative requests are 
initiated will have sufficient time remaining in service after 
completion of the investigation to warrant conducting it;
    3. Insure that request forms and prescribed documentation are 
properly executed in accordance with instructions;
    4. Dispatch the request directly to the DIS Personnel Investigations 
Center;
    5. Promptly notify the DIS Personnel Investigations Center if the 
investigation is no longer needed (notify OPM if a NACI is no longer 
needed); and
    6. Limit access through strict need-to-know, thereby requiring fewer 
investigations.
    In summary, close observance of the above-cited guidelines will 
allow the DIS to operate more efficiently and permit more effective, 
timely, and responsive service in accomplishing investigations.
    B. National Agency Check (NAC). When a NAC is requested an original 
only of the DD Form 398-2 (National Agency Check Request) and a 
completed FD 258 (Applicant Fingerprint Card) are required. If the 
request is for an ENTNANC, an original only of the DD Form 398-2 and a 
completed DD Form 2280 (Armed Forces Fingerprint Card) are required. 
Those forms should be sent directly to: Personnel Investigation Center, 
Defense Investigative Service, P.O. Box 1083, Baltimore, Maryland 21203.
    C. National Agency Check plus written Inquiries (NACI). When a NACI 
is requested, an original and one copy of the SF 85 (Data for 
Nonsensitive or Noncritical-sensitive Position), an SF 171 (Personal 
Qualifications Statement), and an SF 87 (U.S. Civil Service Commission 
Fingerprint Chart) shall be sent directly to: Office of Personnel 
Management, Bureau of Personnel Investigations, NACI Center, Boyers, 
Pennsylvania 16018.
    The notation ``ALL REFERENCES'' shall be stamped immediately above 
the title at the top of the Standard Form 85.
    D. DoD National Agency Check with Inquiries (DNACI). 1. When a DNACI 
is requested, one copy of DD Form 1879, an original and two copies of 
the DD Form 398-2 (National Agency Check Request), two copies of FD 258 
(Fingerprint Card), and an original of DD Form 2221 (Authority for 
Release of Information and Records) shall be sent directly to: Personnel 
Investigations Center, Defense Investigative Service, P.O. Box 1083, 
Baltimore, Maryland 21203.
    2. The DD Form 398-2 must be completed to cover the most recent five 
year period. All information, to include items relative to residences 
and employment, must be complete and accurate to avoid delays in 
processing.
    E. Special Background Investigation (SBI)/Background Investigation 
(BI). 1. When requesting a BI or SBI, one copy of DD Form 1879 (Request 
for Personnel Security Investigation), an original and four copies of DD 
Form 398 (Statement of Personnel History), two copies of FD 258, and an 
original of DD Form 2221 (Authority for Release of Information and 
Records) shall be sent directly to the: Personnel Investigations Center, 
Defense Investigative Service, P.O. Box 454, Baltimore, Maryland 21203.
    2. For the BI and SBI, the DD Form 398 must be completed to cover 
the most recent five and 15 year period, respectively, or since the 18th 
birthday, whichever is shorter.
    F. Periodic Reinvestigation (PR). 1. PRs shall be requested only in 
such cases as are authorized by Sec. 154.19 (a) through (k) of this 
part.
    a. For a PR requested in accordance with Sec. 154.19 (a) and (k) and 
the DD Form 1879 must be accompanied by the following documents:
    (1) Original and four copies of DD Form 398.
    (2) Two copies of FD-258.
    (3) Original copy of DD Form 2221.
    b. In processing PRs, previous investigative reports will not be 
requested by the requesting organization, unless significant derogatory 
or adverse information, postdating the most recent favorable 
adjudication, is developed during the course of reviewing other locally 
available records. In the latter instance, requests for previous 
investigative reports may only be made if it is determined by the 
requesting organization that the derogatory information is so 
significant that a review of previous investigative reports is necessary 
for current adjudicative determinations.
    2. No abbreviated version of DD Form 398 may be submitted in 
connection with a PR.
    3. The PR request shall be sent to the address in paragraph E.1.
    G. Additional investigation to resolve derogatory or adverse 
information. 1. Requests for additional investigation required to 
resolve derogatory or adverse information shall be submitted by DD Form 
1879 (Request for Personnel Security Investigation) to the: Defense

[[Page 757]]

Investigative Service, P.O. Box 454, Baltimore, Maryland 21203.
    Such requests shall set forth the basis for the additional 
investigation and describe the specific matter to be substantiated or 
disproved.
    2. The request should be accompanied by an original and four copies 
of the DD Form 398, where appropriate, two copies of FD-258 and an 
original copy of DD Form 2221, unless such documentation was submitted 
within the last 12 months to DIS as part of a NAC or other personnel 
security investigation. If pertinent, the results of a recently 
completed NAC, NACI, or other related investigative reports available 
should also accompany the request.
    H. Obtaining results of prior investigations. Requesters requiring 
verification of a specified type of personnel security investigation, 
and/or requiring copies of prior investigations conducted by the DIS 
shall submit requests by letter or message to: Defense Investigative 
Service Investigative Files Division, P.O. Box 1211, Baltimore, Maryland 
21203, Message Address: DIS PIC BALTIMORE MD/ /D0640.
    The request will include subject's name, grade, social security 
number, date and place of birth, and DIS case control number if known.
    I. Requesting postadjudication cases. 1. Requests pertaining to 
issues arising after adjudication of an investigation (postadjudication 
cases) shall be addressed to DIS on a DD Form 1879 accompanied by a DD 
Form 398, where appropriate.
    2. All requests for initial investigations will be submitted to PIC 
regardless of their urgency. If, however, there is an urgent need for a 
postadjudication investigation, or the mailing of a request to PIC for 
initiation of a postadjudication case would prejudice timely pursuit of 
investigative action, the DD Form 1879 may be directed for initiation, 
in CONUS, to the nearest DIS Field Office, and in overseas locations, to 
the military investigative service element supporting the requester 
(Appendix I). The field element (either DIS or the military 
investigative agency) will subsequently forward either the DD Form 1879 
or completed investigation to PIC.
    3. A fully executed DD Form 1879 and appropriate supporting 
documents may not be immediately available. Further, a case that is 
based on sensitive security issues may be compromised by a request that 
the subject submit a DD Form 398. A brief explanation should appear on 
DD Form 1879s which does not include complete supporting documentation.
    J. Requests involving contractor employees. To preclude duplicative 
investigative requests and double handling of contractor employee cases 
involving access to classified information, all requests for 
investigation of contractor personnel must be submitted, using 
authorized industrial security clearance forms, for processing through 
the Defense Industrial Security Clearance Office, except for programs in 
which specific approval has been obtained from the Deputy Under 
Secretary of Defense for Policy to utilize other procedures.
    K. Responsibility for proper documentation of requests. The official 
signing the request for investigation shall be responsible for insuring 
that all documentation is completed in accordance with these 
instructions.

      Appendix C to Part 154--Tables for Requesting Investigations

                          Guide for Requesting Background Investigations (BI) (Table 1)                         
----------------------------------------------------------------------------------------------------------------
                  A                                  B                                     C                    
If the individual is a:                And duties require:..........  Then a BI is required before:             
                                                                                                                
----------------------------------------------------------------------------------------------------------------
U.S. national military member,         Top Secret clearance.........  Granting final clearance.                 
 civilian, consultant, or contractor                                                                            
 employee.                                                                                                      
U.S. national civilian employee......  Assignment to a ``Critical''   Assignment to the position.               
                                        sensitive position.                                                     
U.S. national military member, DoD     Occupying a ``critical''       Occupying a ``critical'' position.        
 civilian or contractor employee.       position in the Nuclear                                                 
                                        Weapon Personnel Reliability                                            
                                        Program (PRP).                                                          
U.S. national military member or       Granting, denying clearances.  Performing clearance functions.           
 civilian employee.                                                                                             
U.S. national military member or       Membership on security         Appointment to the board.                 
 civilian employee.                     screening, hearing, or                                                  
                                        review board.                                                           
Immigrant alien......................  Limited access to Secret or    Issuing limited access authorization (Note
                                        Confidential information.      1).                                      
Non-U.S. national employee excluding   Limited access to Secret or    Issuing limited access authorization.     
 immigrant alien.                       Confidential information.                                               
Non-U.S. national nominee military     Education and orientation for  Before performing duties.                 
 education and orientation program      of military personnel.                                                  
 (from a country listed at Appendix                                                                             
 G).                                                                                                            
U.S. national military member DoD      Assignment to a category two   Assignment.                               
 civilian or contractor employee.       Presidential Support                                                    
                                        position.                                                               

[[Page 758]]

                                                                                                                
U.S. national military member, DoD     Access to NATO COSMIC          Access may be granted.                    
 civilian or contractor employee        information.                                                            
 assigned to NATO.                                                                                              
----------------------------------------------------------------------------------------------------------------
 ANote 1: BI will cover a 10 year scope.                                                                        


                     Guide for Requesting Special Background Investigations (SBI) (Table 2)                     
----------------------------------------------------------------------------------------------------------------
                  A                                  B                                     C                    
If the individual is a:                And duties require:..........  Then a SBI is required before:            
                                                                                                                
----------------------------------------------------------------------------------------------------------------
U.S. national military member, DoD     Access to SCI................  Granting Access.                          
 civilian, consultant, or contractor   Assisgnment to a category one  Assignment.                               
 employee.                              Presidential Support                                                    
                                        position.                                                               
                                       Access to SIOP-ESI...........  Granting access.                          
                                       Assignment to the National     Assignment.                               
                                        Security Agency.                                                        
                                       Access to other Special        Granting access.                          
                                        Access programs approved                                                
                                        under Sec.  154.17(g).                                                  
                                       Assignment to personnel        Assignment.                               
                                        security,                                                               
                                        counterintelligence, or                                                 
                                        criminal investigative or                                               
                                        direct investigative support                                            
                                        duties.                                                                 
----------------------------------------------------------------------------------------------------------------


                          Guide for Requesting Periodic Reinvestigations (PR) (Table 3)                         
----------------------------------------------------------------------------------------------------------------
                  A                                  B                                     C                    
If the individual is a:                And duties require:..........  Then a PR is required before:             
                                                                                                                
----------------------------------------------------------------------------------------------------------------
U.S. national military member, DoD     Access to SCI................  5 years from date of last SBI/BI or PR.   
 civilian, consultant, or contractor     Top Secret Clearance.......  5 years from date of last SBI/BI or PR.   
 employee.                                                                                                      
                                       Access to NATO COSMIC........  5 years from date of last SBI/BI or PR.   
                                       Assignment to Presidential     5 years from date of last SBI/BI or PR.   
                                        Support activities.                                                     
U.S. national civilian employee......  Assignment to a ``Critical''   5 years from last SBI/BI or PR.           
                                        sensitive position.                                                     
Non-U.S. national employee...........  Current limited access         5 years from last SBI/BI or PR.           
                                        authorization to Secret or                                              
                                        Confidential information.                                               
----------------------------------------------------------------------------------------------------------------


             Guide for Requesting DOD National Agency Check With Inquiries (DNACI) or NACI (Table 4)            
----------------------------------------------------------------------------------------------------------------
                  A                                  B                                     C                    
If the individual is a:                And duties require:..........  Then DNACI/NACI is required               
                                                                                                                
----------------------------------------------------------------------------------------------------------------
U.S. national military member or       Secret clearance.............  Before granting clearance (note 1).       
 contractor.                             ...........................  May be automatically issued (note 2).     
                                       Interim Secret Clearance.....                                            
U.S. national civilian employee or     Secret clearance.............  Before granting clearance.                
 consultant.                           Interim Secret Clearance.....  May be automatically issued (note 3).     
                                       Appointment to ``Non           Before appointment.                       
                                        Critical'' sensitive                                                    
                                        position.                                                               
U.S. national military member, DoD     Occupying a ``controlled''     Before assignment.                        
 civilian or contractor employee.       position in the Nuclear                                                 
                                        Weapon PRR.                                                             
Applicant for appointment as a         Commission in the Award        Before appointment (after appointment for 
 commissioned officer.                  Forces.                        health professionals, chaplains, and     
                                                                       attorneys, under conditions authorized by
                                                                       Sec.  154.15(d) of this part).           
Naval Academy Midshipman, Military     Enrollment...................  To be initiated 90 days after entry.      
 Academy Cadet, or Air Force Academy                                                                            
 Cadet.                                                                                                         

[[Page 759]]

                                                                                                                
Reserve Officer Training Corps Cadet   Entry to advanced course or    Then a DNACI is required to be initiated  
 of Midshipman.                         College Scholarship Program.   90 days after entry.                     
----------------------------------------------------------------------------------------------------------------
Note 1: First term enlistees shall require an ENTNAC.                                                           
Note 2: Provided DD Form 398-2 is favorably reviewed, local records check favorably accomplished, and DNACI     
  initiated.                                                                                                    
Note 3: Provided an authority designated in Appendix E finds delay in such appointment would be harmful to      
  national security; favorable review of DD Form 398-2; NACI initiated; favorable local records check           
  accomplished. Table 5.                                                                                        


                           Guide for Requesting National Agency Checks (NAC) (Table 5)                          
----------------------------------------------------------------------------------------------------------------
                  A                                  B                                     C                    
If the individual is a:                And duties require:..........  Then a NAC is required:                   
                                                                                                                
----------------------------------------------------------------------------------------------------------------
A first-term enlistee................  Retention in the Armed Forces  To be initiated NLT three work days after 
                                        (including National Guard      entry (note 1).                          
                                        and Reserve).                                                           
Prior service member reentering        Retention in the Armed Forces  To be initiated NLT three work days after 
 military service after break in        (including National Guard      reentry.                                 
 Federal employment exceeding 1 year.   and Reserve).                                                           
Nominee for military education and     Education and orientation of   Before performing duties (note 2).        
 orientation program.                   military personnel.                                                     
U.S. national military, DoD civilian,  Access to restricted areas,    Before authorizing entry.                 
 or contractor employee.                sensitive information, or                                               
                                        equipment as defined in Sec.                                            
                                         154.18(b).                                                             
Nonappropriated fund instrumentality   Appointment as NAFI custodian  Before appointment.                       
 (NAFI) civilian employee.             Accountability for non         Before completion of probationary period. 
                                        appropriated funds.                                                     
                                       Fiscal responsibility as       Before completion of probationary period. 
                                        determined by NAFI custodian.                                           
                                       Other ``positions of trust''.  Before appointment.                       
Persons requiring access to chemical   Access to or security of       Before assignment.                        
 agents.                                chemical agents.                                                        
U.S. national, civilian employee       Wavier under provisions of     Before appointment (note 3).              
 nominee for customs inspection         Sec.  154.18(d).                                                        
 duties.                                                                                                        
Red Cross/United States Organization   Assignment with the Armed      Before assignment (See note 4 for foreign 
 personnel.                             Forces overseas.               national personnel).                     
U.S. national........................  DoD building pass............  Prior to issuance.                        
Foreign national employed overseas...  No access to classified        Prior to employment (note 4).             
                                        information.                                                            
----------------------------------------------------------------------------------------------------------------
Note 1: Request ENTNAC only.                                                                                    
Note 2: Except where personnel whose country of origin is a country listed at Appendix G, a BI will be required 
  (See Sec.  154.18(1)).                                                                                        
Note 3: A NAC not over 5 years old suffices unless there has been a break in employment over 12 months. Then a  
  current NAC is required.                                                                                      
Note 4: In such cases, the NAC shall consist of: (a) Host government law enforcement and security agency record 
  checks at the city, state (province), and national level, and (b) DCII.                                       

        Appendix D to Part 154--Reporting of Nonderogatory Cases

    Background Investigation (BI) and Special Background Investigation 
(SBI) shall be considered as devoid of significant adverse information 
unless they contain information listed below:
    1. Incidents, infractions, offenses, charges, citations, arrests, 
suspicion or allegations of illegal use or abuse of drugs or alcohol, 
theft or dishonesty, unreliability, irresponsibility, immaturity, 
instability or recklessness, the use of force, violence or weapons or 
actions that indicate disregard for the law due to multiplicity of minor 
infractions.
    2. All indications of moral turpitude, heterosexual promiscuity, 
aberrant, deviant, or bizarre sexual conduct or behavior, 
transvestitism, transsexualism, indecent exposure, rape, contributing to 
the delinquency of a minor, child molestation, wife-swapping, window-
peeping, and similar situations from whatever source. Unlisted full-time 
employment or education; full-time education or employment that cannot 
be verified by any reference or record source or that contains 
indications of falsified education or employment experience. Records or 
testimony of employment, education, or military service where the 
individual was involved in serious offenses or incidents that would 
reflect adversely on the honesty, reliability, trustworthiness, or 
stability of the individual.
    3. Foreign travel, education, visits, correspondence, relatives, or 
contact with persons from or living in a foreign country or foreign 
intelligence service.

[[Page 760]]

    4. Mental, nervous, emotional, psychological, psychiatric, or 
character disorders/behavior or treatment reported or alleged from any 
source.
    5. Excessive indebtedness, bad checks, financial difficulties or 
irresponsibility, unexplained affluence, bankruptcy, or evidence of 
living beyond the individual's means.
    6. Any other significant information relating to the criteria 
included in paragraphs (a) through (q) of Sec. 154.7 or Appendix H of 
this part.
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61026, Nov. 19, 1993]

  Appendix E to Part 154--Personnel Security Determination Authorities

    A. Officials authorized to grant, deny or revoke personnel security 
clearances (Top Secret, Secret, and Confidential):
1. Secretary of Defense and/or designee
2. Secretary of the Army and/or designee
3. Secretary of the Navy and/or designee
4. Secretary of the Air Force and/or designee
5. Chairman, Joint Chiefs of Staff and/or designee
6. Directors of the Defense Agencies and/or designee
7. Commanders of the Unified and Specified Commands and/or designee

    B. Officials authorized to grant Limited Access Authorizations:

1. Secretaries of the Military Departments and/or designee
2. Director, Washington Headquarters Service for OSD and/or designee
3. Chairman, JCS and/or designee
4. Directors of the Defense Agencies and/or designee
5. Commanders, Unified and Specified Commands and/or designee

    C. Officials authorized to grant access to SCI:

Director, NSA--for NSA
Director, DIA--for OSD, OJCS, and Defense Agencies
Senior Officers of the Intelligence Community of the Army, Navy, and Air 
Force--for their respective Military Departments, or their single 
designee.

    D. Officials authorized to certify personnel under their 
jurisdiction for access to Restricted Data (to include Critical Nuclear 
Weapon Design Information): see enclosure to DoD Directive 5210.2.
    E. Officials authorized to approve personnel for assignment to 
Presidential Support activities: The Executive Secretary to the 
Secretary and Deputy Secretary of Defense or designee.

    F. Officials authorized to grant access to SIOP-ESI:

1. Director of Strategic Target Planning
2. Director, Joint Staff, OJCS
3. Chief of Staff, U.S. Army
4. Chief of Naval Operations
5. Chief of Staff, U.S. Air Force
6. Commandant of the Marine Corps
7. Commanders of Unified and Specified Commands
8. The authority to grant access delegated above may be further 
delegated in writing by the above officials to the appropriate 
subordinates.

    G. Officials authorized to designate sensitive positions:
    1. Heads of DoD Components or their designees for critical-sensitive 
positions.

    2. Organizational commanders for noncritical-sensitive positions.

    H. Nonappropriated Fund Positions of Trust:

    Officials authorized to designate nonappropriated fund positions of 
trust: Heads of DoD Components and/or their designees.

Appendix F to Part 154--Guidelines for Conducting Prenomination Personal 
                               Interviews

    A. Purpose. The purpose of the personal interview is to assist in 
determining the acceptability of an individual for nomination and 
further processing for a position requiring an SBI.
    B. Scope. Questions asked during the course of a personal interview 
must have a relevance to a security determination. Care must be taken 
not to inject improper matters into the personal interview. For example, 
religious beliefs and affiliations, beliefs and opinions regarding 
racial matters, political beliefs and affiliations of a nonsubversive 
nature, opinions regarding the constitutionality of legislative 
policies, and affiliations with labor unions and fraternal organizations 
are not proper subjects for inquiry. Department of Defense 
representatives conducting personal interviews should always be prepared 
to explain the relevance of their inquiries. Adverse inferences shall 
not be drawn from the refusal of a person to answer questions the 
relevance of which has not been established.
    C. The interviewer. Except as prescribed in paragraph B. above, 
persons conducting personal interviews normally will have broad latitude 
in performing this essential and important function and, therefore, a 
high premium must necessarily be placed upon the exercise of good 
judgment and common sense. To insure that personal interviews are 
conducted in a manner that does not violate lawful civil and private 
rights or discourage lawful political activity in any of its forms, or 
intimidate free expression, it is necessary that interviewers have a 
keen and well-developed awareness of and respect for the rights of 
interviewees. Interviewers shall never offer an opinion as to the 
relevance or significance of information provided by the interviewee to 
eligibility for access to SCI. If

[[Page 761]]

explanation in this regard is required, the interviewer will indicate 
that the sole function of the interview is to obtain information and 
that the determination of relevance or significance to the individual's 
eligibility will be made by other designated officials.
    D. Interview procedures. 1. The Head of the DoD Component concerned 
shall establish uniform procedures for conducting the interview that are 
designed to elicit information relevant to making a determination of 
whether the interviewee, on the basis of the interview and other locally 
available information (DD 398, Personnel Security Investigation 
Questionnaire, personnel records, security file, etc.), is considered 
acceptable for nomination and further processing.
    2. Such procedures shall be structured to insure the interviewee his 
full rights under the Constitution of the United States, the Privacy Act 
of 1974 and other applicable statutes and regulations.
    E. Protection of interview results. All information developed during 
the course of the interview shall be maintained in personnel security 
channels and made available only to those authorities who have a need-
to-know in connection with the processing of an individual's nomination 
for duties requiring access to SCI or those who need access to 
information either to conduct the required SBI or to adjudicate the 
matter of the interviewee's eligibility for access to SCI, or as 
otherwise authorized by Executive order or statute.
    F. Acceptability determination. 1. The determination of the 
interviewee's acceptability for nomination for duties requiring access 
to sensitive information shall be made by the commander, or designee, of 
the DoD organization that is considering nominating the interviewee for 
such duties.
    2. Criteria guidelines contained in DCID 1/14 upon which the 
acceptability for nomination determination is to be based shall be 
provided to commanders of DoD organizations who may nominate individuals 
for access to SCI and shall be consistent with those established by the 
Senior Officer of the Intelligence Community of the Component concerned 
with respect to acceptability for nomination to duties requiring access 
to SCI.

                   Appendix G to Part 154--[Reserved]

               Appendix H to Part 154--Adjudication Policy

    General. The following adjudication policy has been developed to 
assist DoD adjudicators in making determinations with respect to an 
individual's eligibility for employment or retention in sensitive duties 
or eligibility for access to classified information. Adjudication policy 
relative to access to sensitive compartmented information is contained 
in DCID \1/14\.
    While reasonable consistency in reaching adjudicative determinations 
is desirable, the nature and complexities of human behavior preclude the 
development of a single set of guidelines or policies that is equally 
applicable in every personnel security case. Accordingly, the following 
adjudication policy is not intended to be interpreted as inflexible 
rules of procedure. The following policy requires dependence on the 
adjudicator's sound judgment, mature thinking, and careful analysis as 
each case must be weighed on its own merits, taking into consideration 
all relevant circumstances, and prior experience in similar cases as 
well as the guidelines contained in the adjudication policy, which have 
been compiled from common experience in personnel security 
determinations.
    Each adjudication is to be an overall common sense determination 
based upon consideration and assessment of all available information, 
both favorable and unfavorable, with particular emphasis being placed on 
the seriousness, recency, frequency and motivation for the individual's 
conduct; the extent to which conduct was negligent, willful, voluntary, 
or undertaken with knowledge of the circumstances or consequences 
involved; and, to the extent that it can be estimated, the probability 
that conduct will or will not continue in the future. The listed 
``Disqualifying Factors'' and ''Mitigating Factors'' in this set of 
Adjudication Policies reflect the consideration of those factors of 
seriousness, recency, frequency, motivation, etc., to common situations 
and types of behavior encountered in personnel security adjudications, 
and should be followed whenever an individual case can be measured 
against this policy guidance. Common sense may occasionally necessitate 
deviations from this policy guidance, but such deviations should not be 
frequently made and must be carefully explained and documented.
    The ``Disqualifying Factors'' provided herein establish some of the 
types of serious conduct under the criteria that can justify a 
determination to deny or revoke an individual's eligibility for access 
to classified information, or appointment to, or retention in sensitive 
duties. The ``Mitigating Factors'' establish some of the types of 
circumstances that may mitigate the conduct listed under the 
``Disqualifying Factors''. Any determination must include a 
consideration of both the conduct listed under ``Disqualifying Factors'' 
and any circumstances listed under the appropriate or corresponding 
``Mitigating Factors''.
    The adjudication policy is subdivided into sections appropriate to 
each of the criteria provided in Sec. 154.7 of this part, except 
Sec. 154.7(i) for which conduct under any of the ``Disqualifying 
Factors'' of the adjudication policy or any other types of conduct may 
be appropriately included, if it meets the definition of Sec. 154.7(i).

[[Page 762]]

    In all adjudications, the protection of the national security shall 
be the paramount determinant. In the last analysis, a final decision in 
each case must be arrived at by applying the standard that the issuance 
of the clearance or assignment to the sensitive position is ``clearly 
consistent with the interests of national security.''

                                 Loyalty

    (See Sec. 154.7 (a) through (d)).
    Basis: Commission of any act of sabotage, espionage, treason, 
terrorism, anarchy, sedition, or attempts threat or preparation 
therefor, or conspiring with or aiding or abetting another to commit or 
attempt to commit any such act. Establishing or continuing a sympathetic 
association with a saboteur, spy, traitor, seditionist, anarchist, 
terrorist, revolutionist, or with an espionage or other secret agent or 
similar representative of a foreign nation whose interests may be 
inimical to the interests of the United States, or with any person who 
advocates the use of force or violence to overthrow the Government of 
the United States or to alter the form of Government of the United 
States by unconstitutional means. Advocacy or use of force or violence 
to overthrow the Government of the United States or to alter the form of 
Government of the United States by unconstitutional means. Knowing 
membership with the specific intent of furthering the aims of, or 
adherence to and active participation in any foreign or domestic 
organization, association, movement, group or combination of persons 
(hereafter referred to as organizations) which unlawfully advocates or 
practices the commission of acts of force or violence to prevent others 
from exercising their rights under the Constitution or laws of the 
United States or of any State or which seeks to overthrow the Government 
of the United States or any State or subdivision thereof by unlawful 
means.
    Disqualifying Factors (behavior falls within one or more of the 
following categories):
    1. Furnishing a representative of a foreign government information 
or data which could damage the national security of the United States.
    2. Membership in an organization that has been characterized by the 
Department of Justice as one which meets the criteria in the above cited 
``Basis.''
    3. Knowing participation in acts that involve force or violence or 
threats of force or violence to prevent others from exercising their 
rights under the Constitution or to overthrow or alter the form of 
government of the United States or of any State.
    4. Monetary contributions, service, or other support of the 
organization defined in ``Basis'', above, with the intent of furthering 
the unlawful objectives of the organization.
    5. Participation, support, aid, comfort or sympathetic association 
with persons, groups, organizations involved in terrorist activities, 
threats, or acts.
    6. Evidence of continuing sympathy with the unlawful aims and 
objectives of such an organization, as defined in the ``Basis'' above.
    7. Holding a position of major doctrinal or managerial influence in 
an organization as defined in the ``Basis'' above.
    Mitigating Factors (circumstances which may mitigate disqualifying 
information):
    1. Lack of knowledge or understanding of the unlawful aims of the 
organization.
    2. Affiliation or activity occurred during adolescent/young adult 
years (17-25), more than 5 years has passed since affiliation was 
severed, and affiliation was due to immaturity.
    3. Affiliation for less than a year out of curiosity or academic 
interest.
    4. Sympathy or support limited to the lawful objectives of the 
organization.

                           Foreign Preference

    (See Sec. 154.7(f)).
    Basis: Performing or attempting to one's perform duties, acceptance 
and active maintenance of dual citizenship, or other acts conducted in a 
manner which serve or which could be expected to serve the interests of 
another government in preference to the interests of the United States.
    Disqualifying Factors (behavior falls within one or more of the 
following categories):
    1. The active maintenance of dual citizenship, by one or more of the 
following:
    a. Possession of a passport issued by a foreign nation and use of 
this passport to obtain legal entry into any sovereign state in 
preference to use of a U.S. passport.
    b. Military service in the armed forces of a foreign nation or the 
willingness to comply with an obligation to so serve, or the willingness 
to bear arms at any time in the future on behalf of the foreign state.
    c. Exercise or acceptance of rights, privileges or benefits offered 
by the foreign state to its citizens, (e.g., voting in a foreign 
election; receipt of honors or titles; financial compensation due to 
employment/retirement, educational or medical or other social welfare 
benefits), in preference to those of the United States.
    d. Travel to or residence in the foreign state for the purpose of 
fulfilling citizenship requirements or obligations.
    e. Maintenance of dual citizenship to protect financial interests, 
to include property ownership, or employment or inheritance rights in 
the foreign state.
    f. Registration for military service or registration with a foreign 
office, embassy or consulate to obtain benefits.
    2. Employment as an agent or other official representative of a 
foreign government, or seeking or holding political office in a foreign 
state.

[[Page 763]]

    3. Use of a U.S. Government position of trust or responsibility to 
influence decisions in order to serve the interests of another 
government in preference to those of the United States.
    Mitigating Factors (circumstances which may mitigate disqualifying 
information):
    1. Claim of dual citizenship is with a foreign country whose 
interests are not inimical to those of the United States and is based 
solely on applicant's or applicant's parent(s)' birth, the applicant has 
not actively maintained citizenship in the last ten years and indicates 
he or she will not in the future act so as to pursue this claim.
    2. Military service while a U.S. citizen was in the armed forces of 
a state whose interests are not inimical to those of the United States 
and such service was officially sanctioned by United States authorities.
    3. Employment is as a consultant only and services provided is of 
the type sanctioned by the United States Government.

                   Security Responsibility Safeguards

    (See Sec. 154.7 (g) and (e)).
    Basis: Disregard of public law, Statutes, Executive Orders or 
Regulations, including violation of security regulations or practices, 
or unauthorized disclosure to any person of classified information, or 
of other information, disclosure of which is prohibited by Statute, 
Executive Order or Regulation.
    Disqualifying Factors: (behavior falls within one or more of the 
following categories):
    1. Deliberate or reckless disregard of security regulations, public 
law, statutes or Executive Orders which could have resulted in the loss 
or compromise of classified information.
    2. Deliberate or reckless violations of security regulations, 
including, but not limited to, taking classified information home or 
carrying classified data while in a travel status without proper 
authorization, intentionally copying classified documents in order to 
obsure classification markings, disseminating classified information to 
cleared personnel who have no ``need to know'', or disclosing classified 
information, or other information, disclosure of which is prohibited by 
Statute, Executive Order or Regulation, to persons who are not cleared 
or authorized to receive it.
    3. Pattern of negligent conduct in handling or storing classified 
documents.
    Mitigating Factors (circumstances which may mitigate disqualifying 
information):
    1. Violation of security procedures was directly caused or 
significantly contributed to by an improper or inadequate security 
briefing, provided the individual reasonably relied on such briefing in 
good faith.
    2. Individual is personally responsible for a large volume of 
classified information and the violation was merely administrative in 
nature.
    3. Security violation was merely an isolated incident not involving 
deliberate or reckless violation of security policies, practices or 
procedures.

                            Criminal Conduct

    (See Sec. 154.7(h)).
    Basis: Criminal or dishonest conduct.
    When it is determined that an applicant for a security clearance, or 
a person holding a clearance, has engaged in conduct which would 
constitute a felony under the laws of the United States, the clearance 
of such person shall be denied or revoked unless it is determined that 
there are compelling reasons to grant or continue such clearance. 
Compelling reasons can only be shown by clear and convincing evidence of 
the following:
    (a) The felonious conduct (1) did not involve an exceptionally grave 
offense; (2) was an isolated episode; and (3) the individual has 
demonstrated trustworthiness and respect for the law over an extended 
period since the offense occurred; or
    (b) The felonious conduct (1) did not involve an exceptionally grave 
offense; (2) was an isolated episode; (3) was due to the immaturity of 
the individual at the time it occurred; and (4) the individual has 
demonstrated maturity, trustworthiness, and respect for the law since 
that time; or
    (c) In cases where the individual has committed felonious conduct 
but was not convicted of a felony, there are extenuating circumstances 
which mitigate the seriousness of the conduct such that it does not 
reflect a lack of trustworthiness or respect for the law.
    The above criteria supersede all criteria previously used to 
adjudicate criminal conduct involving commission of felonies under the 
Laws of the United States. Involvement in criminal activities which does 
not constitute a felony under the laws of the United States shall be 
evaluated in accordance with the criteria set forth below. (For purposes 
of this paragraph, the term ``felony'' means any crime punishable by 
imprisonment for more than a year. The term ``exceptionally grave 
offense'' includes crimes against the Federal Government, its 
instrumentalities, officers, employees or agents; or involves 
dishonesty, fraud, bribery or false statement; or involves breach of 
trust or fiduciary duty; or involves serious threat to life or public 
safety.)
    Disqualifying Factors: (behavior falls within one or more of the 
following categories):
    1. Criminal conduct involving:
    a. Commission of a State felony.
    b. Force, coercion, or intimidation.
    c. Firearms, explosives, or other weapons.
    d. Dishonesty or false statements, e.g. fraud, theft, embezzlement, 
falsification of documents or statements.
    e. Obstruction or corruption of government functions.
    f. Deprivation of civil rights.

[[Page 764]]

    g. Violence against persons.
    2. Criminal conduct punishable by confinement for one year or more.
    3. An established pattern of criminal conduct, whether the 
individual was convicted or not.
    4. Failure to complete a rehabilitation program resulting from 
disposition of a criminal proceeding or violation of probation, even if 
the violation did not result in formal revocation of probation. 
Rehabilitation should not be considered a success or failure while the 
individual is still on parole/probation.
    5. Criminal conduct that is so recent in time as to preclude a 
determination that recurrence is unlikely.
    6. Close and continuing association with persons known to the 
individual to be involved in criminal activities.
    7. Criminal conduct indicative of a serious mental aberration, lack 
of remorse, or insufficient probability of rehabilitative success, 
(e.g., spouse or child abuse).
    8. Disposition:
    a. Conviction.
    b. Disposition on a legal issue not going to the merits of the 
crime.
    c. Arrest or indictment pending trial when there is evidence that 
the individual engaged in the criminal conduct for which arrested or 
indicted.
    9. Arrest record. In evaluating an arrest record, information that 
indicates that the individual was acquitted, that the charges were 
dropped or the subject of a ``stet'' or ``nolle prosequi'', that the 
record was expunged, or that the cause was dismissed due to error not 
going to the merits, does not negate the security significance of the 
underlying conduct. Personnel security determinations are to be made on 
the basis of all available information concerning a person's conduct and 
actions rather than the legal outcome of a criminal proceeding.
    Mitigating Factors: (circumstances which may mitigate disqualifying 
information):
    1. Immaturity attributable to the age of the individual at the time 
of the offense.
    2. Extenuating circumstances surrounding the offense.
    3. Circumstances indicating that the actual offense was less serious 
than the offense charged.
    4. Isolated nature of the conduct.
    5. Conduct occurring only in the distant past (such as more than 5 
years ago) in the absence of subsequent criminal conduct.
    6. Transitory conditions directly or significantly contributing to 
the conduct (such as divorce action, death in family, severe 
provocation) in the absence of subsequent criminal conduct.

                      Mental or Emotional Disorders

    (See Sec. 154.7(j)).
    Basis: Any behavior or illness, including any mental condition, 
which, in the opinion of competent medical authority, may cause a defect 
in judgment or reliability with due regard to the transient or 
continuing effect of the illness and the medical findings in such case.
    Disqualifying Factors: (behavior or condition falls within one or 
more of the following categories):
    1. Diagnosis by competent medical authority (board certified 
psychiatrist or clinical psychologist) that the individual has an 
illness or mental condition which may result in a significant defect in 
judgment or reliability.
    2. Conduct or personality traits that are bizarre or reflect 
abnormal behavior or instability even though there has been no history 
of mental illness or treatment, but which nevertheless, in the opinion 
of competent medical authority, may cause a defect in judgment or 
reliability.
    3. A diagnosis by competent medical authority that the individual 
suffers from mental or intellectual incompetence or mental retardation 
to a degree significant enough to establish or suggest that the 
individual could not recognize, understand or comprehend the necessity 
of security regulations, or procedures, or that judgment or reliability 
are significantly impaired, or that the individual could be influenced 
or swayed to act contrary to the national security.
    4. Diagnosis by competent medical authority that an illness or 
condition that had affected judgment or reliability may recur even 
though the individual currently manifests no symptoms, or symptoms 
currently are reduced or in remission.
    5. Failure to take prescribed medication or participate in treatment 
(including follow-up treatment or aftercare), or otherwise failing to 
follow medical advice relating to treatment of the illness or mental 
condition.
    Mitigating Factors: (circumstances which may mitigate disqualifying 
information):
    1. Diagnosis by competent medical authority that an individual's 
previous mental or emotional illness or condition that did cause 
significant defect in judgment or reliability is cured and has no 
probability of recurrence, or such a minimal probability of recurrence 
as to reasonably estimate there will be none.
    2. The contributing factors or circumstances which caused the 
bizarre conduct or traits, abnormal behavior, or defect in judgment and 
reliability have been eliminated or rectified, there is a corresponding 
alleviation of the individual's condition and the contributing factors 
or circumstances are not expected to recur.
    3. Evidence of the individual's continued reliable use of prescribed 
medication for a period of at least two years, without recurrence and 
testimony by competent medical authority that continued maintenance of

[[Page 765]]

prescribed medication is medically practical and likely to preclude 
recurrence of the illness or condition affecting judgment or 
reliability.
    4. There has been no evidence of a psychotic condition, a serious or 
disabling neurotic disorder, or a serious character or personality 
disorder for the past 10 years.

       Foreign Connections/Vulnerability To Blackmail or Coercion

    (See paragraph Sec. 154.7(k)).
    Basis: Vulnerability to coercion, influence, or pressure that may 
cause conduct contrary to the national interest. This may be (1) the 
presence of immediate family members or other persons to whom the 
applicant is bonded by affection or obligation in a nation (or areas 
under its domination) whose interests may be inimical to those of the 
United States, or (2) any other circumstances that could cause the 
applicant to be vulnerable.
    Disqualifying Factors: (behavior falls within one or more of the 
following categories):
    1. Indications that the individual now is being blackmailed, 
pressured or coerced by any individual, group, association, organization 
or government.
    2. Indications that a vulnerable individual actually has been 
targeted and/or approached for possible blackmail, coercion or pressure 
by any individual, group, association, organization or government.
    3. Indications that the individual has acted to increase the 
vulnerability for future possible blackmail, coercion or pressure by any 
individual, group, association, organization or governments, especially 
by foreign intelligence services. Indicators include, but are not 
limited to the following:
    a. Failure to report to security officials any evidence, indication 
or suspicion that mail to relatives has been opened, unusually delayed 
or tampered with in any way, or that telephone calls have been 
monitored.
    b. An increase in curiosity or official or quasi-official inquiries 
about the individual to relatives in the country where they reside 
occasioned by the receipt of mail, packages, telephone calls or visits 
from the individual.
    c. Contact with, or visits by officials to the individual while 
visiting relatives in another country, to learn more about the 
individual, or the individual's employment or residence, etc.
    d. Unreported attempts to obtain classified or other sensitive 
information or data by representatives of a foreign country.
    4. Conduct or actions by the individual while visiting in a country 
hostile to the United States that increase the individual's 
vulnerability to be targeted for possible blackmail, coercion or 
pressure. These include, but are not limited to the following:
    a. Violation of any laws of the foreign country where relatives 
reside during visits or through mailing letters or packages, (e.g., 
smuggling, currency exchange violations, unauthorized mailings, 
violations of postal regulations of the country, or any criminal 
conduct, including traffic violations) which may call the attention of 
officials to the individual.
    b. Frequent and regular visits, correspondence, or telephone contact 
with relatives in the country where they reside, increasing the 
likelihood of official notice.
    c. Failure to report to security officials those inquiries by 
friends or relatives for more than a normal level of curiosity 
concerning the individual's employment, sensitive duties, military 
service or access to classified information.
    d. Repeated telephone or written requests to the foreign government 
officials for official favors, permits, visas, travel permission, or 
similar requests which increase the likelihood of official notice.
    e. Reckless conduct, open or public misbehavior or commission of 
acts contrary to local customs or laws, or which violate the mores of 
the foreign country and increase the likelihood of official notice.
    f. Falsification of documents, lying to officials, harassing or 
taunting officials or otherwise acting to cause an increase in the 
likelihood of official notice or to increase the individual's 
vulnerability because personal freedom could be jeopardized.
    g. Commission of any illicit sexual act, drug purchase or use, 
drunkenness or similar conduct which increases the likelihood of 
official notice, or which increases the individual's vulnerability 
because personal freedom could be jeopardized.
    5. Conduct or actions by the individual that increase the 
individual's vulnerability to possible coercion, blackmail or pressure, 
regardless of the country in which it occurred, including, but not 
limited to the following:
    a. Concealment or attempts to conceal from an employer prior 
unfavorable employment history, criminal conduct, mental or emotional 
disorders or treatment, drug or alcohol use, sexual preference, or 
sexual misconduct described under that section below, or fraudulent 
credentials or qualifications for employment.
    b. Concealment or attempts to conceal from immediate family members, 
or close associates, supervisors or coworkers, criminal conduct, mental 
or emotional disorders or treatment, drug or alcohol abuse, sexual 
preference, or sexual misconduct described under that section below.
    Mitigating Factors (circumstances which may mitigate disqualifying 
infomration):
    1. The individual:
    a. Receives no financial assistance from and provides no financial 
assistance to persons or organizations in the designated country.

[[Page 766]]

    b. Has been in the United States for at least 5 years since becoming 
a U.S. citizen without significant contact with persons or organizations 
from the designated country (each year of active service in the United 
States military may be counted).
    c. Has close ties of affection to immediate family members in the 
United States.
    d. Has adapted to the life-style in the United States, established 
substantive financial or other associations with U.S. enterprises or 
community activities.
    e. Prefers the way of life and form of government in the U.S. over 
the other country.
    f. Is willing to defend the U.S. against all threats including the 
designated country in question.
    g. Has not divulged the degree of association with the U.S. 
government or access to classified information to individuals in the 
designated country in question.
    h. Has not been contacted or approached by anyone or any 
organization from a designated country to provide information or favors, 
or to otherwise act for a person or organization in the designated 
country in question.
    i. Has promptly reported to proper authorities all attempted 
contacts, requests or threats from persons or organizations from the 
designated country.
    j. The individual is aware of the possible vulnerability to attempts 
of blackmail or coercion and has taken positive steps to reduce or 
eliminate such vulnerability.

                            Financial Matters

    (See Sec. 154.7(1)).
    Basis: Excessive indebtedness, recurring financial difficulties, or 
unexplained affluence.
    Disqualifying Factors: (behavior falls within one or more of the 
following categories):
    1. History of bad debts, garnishments, liens, repossessions, 
unfavorable judgments, delinquent or uncollectable accounts or debts 
written off by creditors as uncollectable losses with little or no 
apparent or voluntary effort by the individual to pay amounts owed.
    2. Bankruptcy:
    a. Due to financial irresponsibility, or
    b. With continuing financial irresponsibility thereafter.
    3. Indebtedness aggravated or caused by gambling, alcohol, drug 
abuse, or other factors indicating poor judgement or financial 
irresponsibility.
    4. A history or pattern of living beyond the person's financial 
means or ability to pay, a lifestyle reflecting irresponsible 
expenditures that exceed income or assets, or a history or pattern of 
writing checks not covered by sufficient funds or on closed accounts.
    5. Indication of deceit or deception in obtaining credit or bank 
accounts, misappropriation of funds, income tax evasion, embezzlement, 
fraud, or attempts to evade lawful creditors.
    6. lndifference to or disregard of financial obligations or 
indebtedness or intention not to meet or satisfy lawful financial 
obligations or when present expenses exceed net income.
    7. Unexplained affluence or income derived from illegal gambling, 
drug trafficking or other criminal or nefarious means.
    8. Significant unexplained increase in an individual's net worth.
    Mitigating Factors: (circumstances which may mitigate disqualifying 
information):
    1. Scheduled program or systematic efforts demonstrated over a 
period of time (generally one year) to satisfy creditors, to acknowledge 
debts and arrange for reduced payments, entry into debt-consolidation 
program or seeking the advice and assistance of financial counselors or 
court supervised payment program.
    2. Change to a more responsible lifestyle, reduction of credit card 
accounts, and favorable change in financial habits over a period of time 
(generally one year).
    3. Stable employment record and favorable financial references.
    4. Unforeseen circumstances beyond the individual's control (e.g. a 
major or catastrophic illness or surgery, accidental loss of property or 
assets not covered by insurance, decrease or cutoff of income, 
indebtedness resulting from court judgments not due to the individual's 
financial mismanagement), provided the individual demonstrates efforts 
to respond to the indebtedness in a reasonable and responsible fashion.
    5. Indebtedness due to failure of legitimate business efforts or 
business-related bankruptcy without evidence of fault or financial 
irresponsibility on the part of the individual, irresponsible 
mismanagement of an individual's funds by another who had fiduciary 
control or access to them without the individual's knowledge, or loss of 
assets as a victim of fraud or deceit, provided the individual 
demonstrates efforts to respond to the indebtedness in a reasonable and 
responsible fashion.
    6. Any significant increase in net worth was due to legitimate 
business interests, inheritance or similar legal explanation.

                              Alcohol Abuse

    (See paragraph Sec. 154.7(m)).
    Basis: Habitual or episodic use of intoxicants to excess.
    Disqualifying Factors: (behavior falls within one or more of the 
following categories):
    1. Habitual or episodic consumption of alcohol to the point of 
impairment or intoxication.
    2. Alcohol-related incidents such as traffic violations, fighting, 
child or spouse abuse, non-traffic violation or other criminal incidents 
related to alcohol use.

[[Page 767]]

    3. Deterioration of the individual's health or physical or mental 
condition due to alcohol use or abuse.
    4. Drinking on the job, reporting for work in an intoxicated or 
``hungover'' condition, tardiness or absences caused by or related to 
alcohol abuse, and impairment or intoxication occurring during, and 
immediately following, luncheon breaks.
    5. Refusal or failure to accept counseling or professional help for 
alcohol abuse or alcoholism.
    6. Refusal or failure to follow medical advice relating to alcohol 
abuse treatment or to abstain from alcohol use despite medical or 
professional advice.
    7. Refusal or failure to significantly decrease consumption of 
alcohol or to change life-style and habits which contributed to past 
alcohol related difficulties.
    8. Indications of financial or other irresponsibility or 
unreliability caused by alcohol abuse, or discussing sensitive or 
classified information while drinking.
    9. Failure to cooperate in or successfully complete a prescribed 
regimen of an alcohol abuse rehabilitation program.
    Mitigating Factors (circumstances which may mitigate disqualifying 
information):
    1. Successfully completed an alcohol awareness program following two 
or less alcohol-related incidents and has significantly reduced alcohol 
consumption, and made positive changes in life-style and improvement in 
job reliability.
    2. Successfully completed an alcohol rehabilitation program after 
three or more alcohol-related incidents, has significantly reduced or 
eliminated alcohol consumption in accordance with medical or 
professional advice, regularly attended Alcoholics Anonymous or similar 
support organization for approximately one year after rehabilitation, 
and abstained from the use of alcohol for that period of time.
    3. Whenever one of the situations listed below occurs, the 
individual must have successfully completed an alcohol rehabilitation or 
detoxification program and totally abstained from alcohol for a period 
of approximately two years:
    a. The individual has had one previously failed rehabilitation 
program and subsequent alcohol abuse or alcohol related incidents.
    b. The individual has been diagnosed by competent medical or health 
authority as an alcoholic, alcoholic dependent or chronic abuser of 
alcohol.
    4. Whenever the individual has had repeated unsuccessful 
rehabilitation efforts and has continued drinking or has been involved 
in additional alcohol related incidents then the individual must have 
successfully completed an alcohol rehabilitation or detoxification 
program, totally abstained from alcohol for a period of at least three 
years and maintained regular and frequent participation in meetings of 
Alcoholics Anonymous or similar organizations.
    5. If an individual's alcohol abuse was surfaced solely as a result 
of self referral to an alcohol abuse program and there have been no 
precipitating factors such as alcohol related arrests or incidents 
action will not normally be taken to suspend or revoke security 
clearance solely on the self referral for treatment.

                               Drug Abuse

    (See Sec. 154.7(n)).
    Basis: Illegal or improper use, possession, transfer, sale or 
addiction to any controlled or psychoactive substance, narcotic, 
cannabis, or other dangerous drug.
    Disqualifying Factors (behavior falls within one or more of the 
following categories):
    1. Abuse of cannabis only, not in combination with any other 
substance.
    a. Experimental abuse, defined as an average of once every two 
months or less, but no more than six times.
    b. Occasional abuse, defined as an average of not more than once a 
month.
    c. Frequent abuse, defined as an average of not more than once a 
week.
    d. Regular abuse, defined as an average of more than once a week.
    e. Compulsive use, habitual use, physical or psychological 
dependency, or use once a day or more on the average.
    2. Abuse of any narcotic, psychoactive substance or dangerous drug 
(to include prescription drugs), either alone, or in combination with 
another or cannabis, as follows:
    a. Experimental abuse, defined as an average of once every two 
months or less, but no more than six times.
    b. Occasional abuse, defined as an average of not more than once a 
month.
    c. Frequent abuse, defined as an average of not more than once a 
week.
    d. Regular abuse, defined as an average of more than once a week.
    e. Compulsive use, habitual use, physical or psychological 
dependency, or use on an average of once a day or more on the average.
    3. Involvement to any degree in the unauthorized trafficking, 
cultivation, processing, manufacture, sale, or distribution of any 
narcotic, dangerous drug, or cannabis or assistance to those involved in 
such acts whether or not the individual was arrested for such activity.
    4. Involvement with narcotics, dangerous drugs or cannabis under the 
following conditions whether or not the individual engages in personal 
use:
    a. Possession.
    b. Possession of a substantial amount, more than could reasonably be 
expected for personal use.
    c. Possession of drug paraphernalia for cultivating, manufacturing 
or distributing (e.g.,

[[Page 768]]

possession of gram scales, smoking devices, needles for injecting 
intravenously, empty capsules or other drug production chemical 
paraphernalia.
    d. Possession of personal drug paraphernalia such as needles for 
injecting, smoking devices and equipment, etc.
    5. Information that the individual intends to continue to use 
(regardless of frequency) any narcotic, dangerous drug or cannabis. 
Note: There is no corresponding Mitigating Factor for this Disqualifying 
Factor because it is DoD policy that, as a general rule, if any 
individual expresses or implies any intent to continue use of any 
narcotic, dangerous drug, or other controlled substance, including 
marijuana and hashish, without a prescription, in any amount and 
regardless of frequency, it is to be considered contrary to the national 
interest and the interests of national security to grant or allow 
retention of a security clearance for access to classified information 
for that individual.)
    Mitigating Factors (circumstances which may mitigate disqualifying 
information):
    1. Abuse of cannabis only, as follows: (Use this to assess 
Disqualifying Factor 1)
    a. Experimental abuse, which occurred more than six months ago and 
the individual has demonstrated an intent not to use cannabis or any 
other narcotic, psychoactive substance or dangerous drug in the future.
    b. Occasional abuse of cannabis, which occurred more than 12 months 
ago, and the individual has demonstrated an intent not to use cannabis 
or any other narcotic, dangerous drug or psychoactive substance in the 
future.
    c. Frequent abuse of cannabis occurred more than 18 months ago, and 
the individual has demonstrated an intent not to use cannabis or any 
other narcotic, dangerous drug or psychoactive substance in the future.
    d. Regular abuse of cannabis occurred more than two years ago, and 
the individual has demonstrated an intent not to use cannabis or any 
other narcotic, dangerous drug or psychoactive substance in the future.
    e. Compulsive, habitual use or physical or psychological dependency 
on cannabis occurred more than three years ago, the individual has 
demonstrated an intent not to use cannabis or any other narcotic, 
dangerous drug or psychoactive substance in the future and has 
demonstrated a stable life-style, with no indication of physical or 
psychological dependence.
    2. For abuse other than cannabis alone. Use is considered cumulative 
and each separate substance must not be considered separately. (Use this 
to assess Disqualifying Factor 2).
    a. Experimental abuse occurred more than 12 months ago, the 
individual has demonstrated an intent not to use any drugs or cannabis 
in the future and has successfully completed a drug rehabilitation 
program.
    b. Occasional abuse occurred more than two years ago, the individual 
has demonstrated an intent not to use any drugs or cannabis in the 
future, has a stable lifestyle and satisfactory employment record and 
has successfully completed a drug rehabilitation program.
    c. Frequent abuse occurred more than three years ago, the individual 
has demonstrated an intent not to use any drugs or cannabis in the 
future, has a stable lifestyle, including satisfactory employment record 
with no further indication of drug abuse, and has successfully completed 
a drug rehabilitation program.
    d. Regular abuse occurred more than four years ago, the individual 
has demonstrated an intent not to use any drugs or cannabis in the 
future, has a stable lifestyle, including satisfactory employment record 
with no further indication of drug abuse, and has successfully completed 
a drug rehabilitation program.
    e. Compulsive abuse occurred more than five years ago, the 
individual has demonstrated an intent not to use any drugs or cannabis 
in the future, has a stable lifestyle, including satisfactory employment 
record with no further indication of drug abuse, and has successfully 
completed a drug rehabilitation program.
    3. Use this only to assess conduct under Disqualifying Factor 3.
    a. Involvement in trafficking, cultivation, processing, manufacture, 
sale or distribution occurred more than five years ago, the individual 
has demonstrated an intent not to do so in the future, and has a stable 
lifestyle and satisfactory employment record and has not been involved 
in any other criminal activity.
    b. Cultivation was for personnel use only, in a limited amount for a 
limited period and the individual has not been involved in similar 
activity or other criminal activity for more than three years and has 
demonstrated intent not to do so again in the future.
    c. Illegal sale or distribution involved only the casual supply to 
friends of small amounts (not for profit or to finance a personal 
supply) and occurred on only a few occasions more than two years ago, 
and the individual has demonstrated an intent not to do so again in the 
future.
    4. Use this only to assess conduct under Disqualifying Factor 4 in 
the corresponding subparagraphs.
    a. No possession of drugs or other criminal activity in the last two 
years.
    b. The individual has not possessed drugs in the last three years, 
has had no other criminal activity in the last three years and has 
demonstrated an intent not to be involved in such activity in the 
future.
    c. The individual has not possessed drug paraphernalia used in 
processing, manufacture or distribution for the last five years,

[[Page 769]]

has had no other criminal activity in the last five years and has 
demonstrated an intent not to be involved in such activity in the 
future.
    d. The individual has not possessed drug paraphernalia for personal 
use in the last year, has had no other criminal activity in the last two 
years and has demonstrated an intent not to be involved in such activity 
in the future.
    1. Narcotic. Opium and opium derivatives or synethtic substitutes.
    2. Dangerous Drug. Any of the nonnarcotic drugs which are habit 
forming or have a potential for abuse because of their stimulant, 
depressant or hallucinogenic effect.
    3. Cannabis. The intoxicating products of the hemp plant, Cannabis 
Sativa, including but not limited to marijuana, hashish, and hashish 
oil.

                              Falsification

    (See Sec. 154.7(o)).
    Basis: Any knowing and willful falsification, cover-up, concealment, 
misrepresentation, or omission of a material fact from any written or 
oral statement, document, form or other representation or device used by 
the Department of Defense or any other Federal agency.
    Disqualifying Factors (behavior falls within one or more of the 
following categories):
    1. Deliberate omission, concealment, falsification or 
misrepresentation of relevant and material facts including, but not 
limited to information concerning arrests, drug abuse or treatment, 
alcohol abuse or treatment, treatment for mental or emotional disorders, 
bankruptcy, military service information, organizational affiliations, 
financial problems, employment, foreign travel, or foreign connections 
from any Personnel Security Questionnaire, Personal History Statement or 
similar form used by any Federal agency to conduct investigations, 
determine employment qualifications, award benefits or status, determine 
security clearance or access eligibility, or award fiduciary 
responsibilities.
    2. Deliberately providing false or misleading information concerning 
any of the relevant and material matters listed above to an 
investigator, employer, supervisor, security official or other official 
representative in connection with application for security clearance or 
access to classified information or assignment to sensitive duties.
    Mitigating Factors (circumstances which may mitigate disqualifying 
information):
    1. The information was not relevant or material to reaching a 
security clearance or access determination.
    2. The falsification was an isolated incident in the distant past 
(more than 5 years) and the individual subsequently had accurately 
provided correct information voluntarily during reapplication for 
clearance or access and there is no evidence of any other falsification 
misrepresentation or dishonest conduct by the individual.
    3. The behavior was not willful.
    4. The falsification was done unknowingly or without the 
individual's knowledge.
    5. The individual made prompt, good faith efforts to correct the 
falsification before being confronted with the facts of falsification.
    6. Omission of material fact was caused by or significantly 
contributed to by improper or inadequate advice of authorized personnel, 
provided the individual reasonably relied on such improper or inadequate 
advice in good faith, and when the requirement subsequently was made 
known to the individual, the previously omitted information was promptly 
and fully provided.

                            Refusal to Answer

    (See Sec. 154.7(p)).
    Basis: Failing or refusing to answer or to authorize others to 
answer questions or provide information required by a Congressional 
committee, court or agency in the course of an official inquiry whenever 
such answers or information concern relevant and material matters 
pertinent to an evaluation of the individual's trustworthiness, 
reliability and judgment.
    Disqualifying Factors (behavior falls within one or more of the 
following categories):
    1. Failure or refusal to provide full, frank and truthful answers or 
to authorize others to do so, in connection with any application for 
security clearance or access, to include required non-disclosure and 
security termination agreements.
    2. Failure or refusal to provide appropriate investigative forms, 
including release forms, for use by investigators in obtaining 
information from medical institutions, agencies or personal physicians, 
therapists, psychologists, psychiatrists, counselors, rehabilitation 
treatment, agencies or personnel; from police or criminal agencies, 
probation agencies or officers, financial institutions, employers, 
Federal or State agencies, professional associations or any other 
organizations as required as part of an investigation for security 
clearance, access, appointment or assignment to sensitive duties.
    3. Failure or refusal to authorize others to provide relevant and 
material information necessary to reach a security clearance 
determination.
    4. Failure or refusal to answer questions or provide information 
required by a Congressional committee, court or agency when such answers 
or information concern relevant and material matters pertinent to 
evaluating the individual's trustworthiness, reliability and judgment.
    Mitigating Factors (circumstances which may mitigate disqualifying 
information):

[[Page 770]]

    1. The individual was unable to provide the information despite good 
faith and reasonable efforts to do so.
    2. The individual was unaware of the necessity to provide the 
information requested or of the possible consequences of such refusal or 
failure to provide the information, and, upon being made aware of this 
requirement, fully frankly and truthfully provided the requested 
information.
    3. The individual sought and relied in good faith on information and 
advice from legal counsel or other officials that the individual was not 
required to provide the information requested, and, upon being made 
aware of the requirement, fully, frankly and truthfully provided the 
requested information.

                            Sexual Misconduct

    (See Sec. 154.7(q)).
    Basis: Acts of sexual misconduct or perversion indicative of moral 
turpitude, poor judgment, or lack of regard for the laws of society.
    Disqualifying Factors (behavior falls within one or more of the 
following categories):
    1. The conduct involves:
    a. Acts performed or committed in open or public places.
    b. Acts performed with a minor, or with animals.
    c. Acts involving inducement, coercion, force, violence or 
intimidation of another person.
    d. Prostitution, pandering or the commission of sexual acts for 
money or other remuneration or reward.
    e. Sexual harassment.
    f. Self mutilation, self punishment or degradation.
    g. Conduct that involves spouse swapping, or group sex orgies.
    h. Adultery that is recent, frequent and likely to continue and has 
an adverse effect on good order or discipline within the workplace 
(e.g., officer/enlisted, supervisor/subordinate, instructor/student).
    i. Conduct determined to be criminal in the locale in which it 
occurred.
    j. Deviant or perverted sexual behavior which may indicate a mental 
or personality disorder (e.g., transexualism, transvestism, 
exhibitionism, incest, child molestation, voyeurism, bestiality, or 
sodomy.)
    2. The conduct has been recent.
    3. The conduct increases the individual's vulnerability to 
blackmail, coercion or pressure.
    4. Evidence that the applicant has intention or is likely to repeat 
the conduct in question.
    Mitigating Factors (circumstances which may mitigate qualifying 
information):
    1. Sexual misconduct occurred on an isolated basis during or 
preceding adolescence with no evidence of subsequent conduct of a 
similar nature, and clear indication that the individual has no 
intention of participating in such conduct in the future.
    2. Sexual misconduct was isolated, occurred more than 3 years ago, 
and there is clear indication that the individual has no intention of 
participating in such conduct in the future.
    3. The individual was a minor or was the victim of force, or 
violence by another.
    4. The individual has successfully completed professional therapy, 
has been rehabilitated and diagnosed by competent medical authority that 
misconduct is not likely to recur.
    5. Demonstration that the individual's sexual misconduct can no 
longer form the basis for vulnerability to blackmail, coercion or 
pressure.
[52 FR 11219, Apr. 8, 1987, as amended at 58 FR 61026, Nov. 19, 1993]

             Appendix I to Part 154--Overseas Investigations

                               1. Purpose

    The purpose of this appendix is to establish, within the framework 
of this part, 32 CFR part 361 and Defense Investigative Service Manual 
20-1, standardized procedures for the military investigative agencies to 
follow when they perform administrative and investigative functions on 
behalf of DIS at overseas locations.

                          2. Type Investigation

    This part describes in detail Background Investigations (BI) which 
are conducted for Limited Access Authorizations and those Special 
Investigative Inquiries conducted for post-adjudicative purposes. 
Hereafter they are referred to as LAA and Post-adjudicative cases and 
are briefly described in paragraphs a and b below:
    a. Limited access authorization. A level of access to classified 
defense information that may be granted to a non-U.S. citizen under 
certain conditions, one of which is that a BI must have been completed 
with satisfactory results. Sec. 154.16(d) further describes LAA cases.
    b. Post-adjudication investigation. A Personnel Security 
Investigation (PSI) predicated on new, adverse or questionable security, 
suitability or hostage information that arises and requires the 
application of investigation procedures subsequent to adjudicative 
action on a DoD-affiliated person's eligibility for continued access to 
classified information, assignment to or retention in sensitive duties 
or other designated duties requiring such investigation. While these 
cases are normally predicated on the surfacing of unfavorable 
information subsequent to favorable adjudication, they may also be 
opened when favorable information is offered

[[Page 771]]

to counter a previous unfavorable adjudication. Sec. 154.9(c)(3) further 
describes these cases.

                               3. General

    a. As a rule, investigative activity in most PSIs occurs in the U.S. 
even when the Subject is at an overseas location. Therefore, the 
submission of requests for investigation to the Personnel Investigation 
Center (PIC) at Baltimore is a required procedure as it ensures uniform 
application of DoD PSI policy and the efficient dispatch and 
coordination of leads.
    b. When the purpose of the investigation is for an LAA or post-
adjudication on a Subject overseas, much, if not all of the leads are at 
an overseas location. While these cases also may be submitted directly 
to PIC for action, there is an inherent delay in the mailing of the 
request, the exchange of leads and reports with PIC, and transmittal of 
the reports back to the requester. To avoid this delay, the military 
investigative agencies, when acting for DIS overseas in accordance with 
32 CFR part 361 may, with their Headquarters approval, accept these 
requests for investigations, initiate them and disseminate the results 
from the same level as they open, close, and disseminate their own 
cases. Usually this will greatly improve response time to the requester.
    c. Under the procedures in paragraph b., above, DIS will not often 
be in a position to directly exercise its responsibility for control and 
direction until the case or lead is in progress or even completed; 
therefore, adherence to the policy stated in referenced documents, and 
as modified herein, is mandatory. When the policy of the military 
investigative agency is at variance with the above, the matter will be 
referred to the respective headquarters for resolution.
    d. Since DIS is ultimately responsible for the personnel security 
product, it must be kept informed of all such matters referred to in 
this appendix. For instance, when the investigative agency overseas 
receives a DD Form 1879, Request for Personnel Security Investigation, 
which sets forth an issue outside DIS jurisdiction, it will reject the 
request, inform the requester of the reason and furnish an information 
copy of the DD Form 1879 and rejection letter to PIC. When the issue/
jurisdiction is unclear to the investigative agency, the DD Form 1879 
and the perceived jurisdictional question should be promptly forwarded 
to DIS for action and, if appropriate, to the component's headquarters 
for information. Questions on the interpretation of DIS or DoD policy 
and Directives pertaining to individual PSI cases can usually be 
resolved through direct communications with PIC.
    e. 32 CFR part 361 establishes the supporting relationship of the 
military investigative agencies to DIS in overseas areas, and DIS 
provides these agencies with copies of relevant policy and interpretive 
guidance. For these reasons, the investigative agency vice the 
requester, is responsible for evaluating the request, processing it, 
collecting and evaluating the results within their jurisdiction for 
sufficiency, and forwarding the completed product to the appropriate 
activity.
    f. The magnitude of operations at PIC requires that methods of 
handling LAA and post-adjudicative cases be consistent to the maximum 
extent possible. For this reason, the procedures for LAA cases are 
nearly identical to those for post-adjudicative cases. Briefly, the main 
exceptions are:
    (1) The notification to PIC that a post-adjudication case has been 
opened will be by message, since an issue is present at the outset, 
whereas notification of an LAA case should normally be by mail.
    (2) The scope of the LAA investigation is 10 years or since the 
person's 18th birthday, whichever is shortest, whereas the leads in a 
post-djudication case are limited to resolving the issue.

                             4. Jurisdiction

    a. As set-forth in 32 CFR part 361 DIS is responsible for conducting 
all DoD PSIs in the 50 States, District of Columbia, and Puerto Rico, 
and will request the military departments to accomplish investigative 
requirements elsewhere. The military investigative agencies in overseas 
locations routinely respond to personnel security investigative leads 
for DIS.
    b. DIS jurisdiction also includes investigation of subversive 
affiliations, suitability information, and hostage situations when such 
inquiries are required for personnel security purposes; however, 
jurisdiction will rest with the military investigative agencies, FBI 
and/or civil authorities as appropriate when the alleged subversion or 
suitability issue represents a violation of law or, in the case of a 
hostage situation, there is an indication that the person concerned is 
actually being pressured, coerced, or influenced by interests inimical 
to the United States, or that hostile intelligence is taking action 
specifically directed against that person. Specific policy guidance on 
the applicability of these procedures and the jurisdictional 
considerations are stated in Sec. 154.9.

                             5. Case Opening

    a. A request for investigation must be submitted by using DD Form 
1879 and accompanied by supporting documentation unless such 
documentation is not immediately available, or the obtaining of 
documentation would compromise a sensitive investigation. Upon receipt 
of the request, the military investigative component will identify the 
issue(s), scope the leads, and ensure that the proposed action is that 
which is authorized

[[Page 772]]

for DIS as delineated in this part, 32 CFR part 361 and Defense 
Investigative Service Manual 201-1.
    b. Upon such determination, the Component will prepare an Action 
Lead Sheet (ALS) which fully identifies the Subject and the scope of the 
case, and specifies precisely the leads which each investigative 
component (including DIS/PIC when appropriate) is to conduct.
    c. Case opening procedures described above are identical for LAA and 
post-adjudication cases except with respect to notification of case 
opening to PIC:
    (1) Post-adjudication Cases. These cases, because they involve an 
issue, are potentially sensitive and must be examined as early as 
possible by PIC for conformity to the latest DoD policy. Accordingly, 
the initial notification to PIC of case openings will always be by 
message. The message will contain at a minimum:
    (a) Full identification of the subject;
    (b) A narrative describing the allegation/facts in sufficient detail 
to support opening of the case; and
    (c) A brief listing of the leads that are planned.
    The DD Form 1879 and supporting documents, along with the agency's 
ALS, should be subsequently mailed to PIC.
    (2) LAA Cases. The notification to PIC of case opening will normally 
be accomplished by mailing the DD Form 1879, DD Form 398 (Personal 
History Statement), a copy of the ALS, and any other supporting 
documents to PIC. Message notification to PIC in LAA cases will only be 
required if there is a security or suitability issue apparent in the DD 
Form 1879 or supporting documents.
    (d) Beyond initial actions necessary to test allegation for 
investigative merit and jurisdiction, no further investigative action 
should commence until the notification of case opening to PIC has been 
dispatched.
    (e) PIC will promptly respond to the notification of case opening by 
mail or message specifying any qualifying remarks along with a summary 
of previously existing data. PIC will also provide a DIS case control 
number (CCN). This number must be used by all components on all case 
related paperwork/reports.
    (The investigating agency may assign its unique service CCN for 
interim internal control; however, the case will be processed, 
referenced, and entered into the DCII by the DIS case control number.) 
The first five digits of the DIS CCN will be the Julian date of the case 
opening when received at DIS.

                           6. Case Processing

    a. The expected completion time for leads in LAA cases is 50 
calendar days and for post-adjudication cases, 30 days, as computed from 
the date of receipt of the request. If conditions preclude completion in 
this time period, a pending report of the results to date, along with an 
estimated date of completion will be submitted to PIC.
    b. Copies of all ALSs will be furnished to PIC. In addition, PIC 
will be promptly notified of any significant change in the scope of the 
case, or the development of an investigative issue.
    c. The procedures for implementing the Privacy Act in PSI cases are 
set in DIS Manual 20-1-M 1. Any other restrictions on the release of 
information imposed by an overseas source or by regulations of the 
country where the inquiry takes place will be clearly stated in the 
report.
    d. The report format for these cases will be that used by the 
military investigative agency.
    e. Investigative action outside the jurisdictional area of an 
investigative component office may be directed elsewhere by ALS as 
needed in accordance with that agency's procedures and within the 
following geographical considerations:
    (1) Leads will be sent to PIC if the investigative action is in the 
United States, District of Columbia, Puerto Rico, American Samoa, Bahama 
Islands, the U.S. Virgin Islands, and the following islands in the 
Pacific: Wake, Midway, Kwajalin, Johnston, Carolines, Marshalls, and 
Eniwetok.
    (2) Leads to areas not listed above may be dispatched to other units 
of the investigative agency or even to another military agency's field 
units if there is an agreement or memorandum of understanding that 
provides for such action. For case accountability purposes, copies of 
such ``lateral'' leads must be sent to the PIC.
    (3) Leads that cannot be dispatched as described in paragraph (2) 
above, and those that must be sent to a non-DoD investigative agency 
should be sent to PIC for disposition.
    f. The Defense Investigative Manual calls for obtaining PIC approval 
before conducting a Subject interview on a post-adjudicative 
investigation. To avoid the delay that compliance with this procedure 
would create, a military investigative component may conduct the 
interview provided:
    (1) All other investigative leads have been completed and reviewed.
    (2) The CCN has been received, signifying DIS concurrence with the 
appropriateness of the investigation.
    (3) Contrary instructions have not been received from the PIC.
    (4) The interview is limited to the resolution of the relevant 
issues disclosed by the investigation.
    g. Notwithstanding the provisions of paragraphs f.(1) through (4) of 
this Appendix, if time is of the essence due to imminent transfer of the 
subject, a subject interview may be conducted at the discretion of the 
investigative agency.

[[Page 773]]

                    7. Case Responsibility LAA and PA

    Paragraph 3, above, describes the advantages of timely handling 
which accrue when the military investigative components act for DIS 
overseas. These actions for DIS may, however, be limited by the 
component's staffing and resource limitations, especially since some 
cases require more administration and management than others. Post-
adjudication case leads, for instance, will normally be within the 
geographical jurisdiction of the component that accepted the request for 
investigation; therefore, relatively little case management is required. 
In contrast, LAA cases may require leads world-wide, and, therefore, 
create more complex case management and administration, especially in 
the tracking, monitoring and reviewing of leads outside the component's 
geographical area. Accordingly, an investigative component will accept 
the case from the requester, but only assign itself the appropriate 
leads within its own geographical jurisdiction and send the balance to 
PIC for appropriate disposition in accordance with the following:
    a. The investigative agency will accept the request for 
investigation (thereby saving time otherwise lost in mailing to PIC) but 
limit its involvement in case management by extracting only those leads 
it will conduct or manage locally.
    b. The agency should then prepare an ALS that shows clearly what 
leads it will cover and send PIC a copy of this ALS, along with the 
request for investigation and any other appropriate documentation. It 
must be clear in the ALS that PIC is to act on all those leads that the 
unit has not assigned to itself.
    c. PIC, as case manager, will assume responsibility for the complete 
investigative package and, upon receipt of the last lead, will send the 
results to the appropriate activity.
    d. The agency that accepted the case and assigned itself leads may 
send a copy of its report to the activity in the ``Results to'' block at 
the same time it sends the originals to PIC. If so, the letter of 
transmittal must inform the recipient that these reports are only a 
portion of the investigation, and that the balance will be forthcoming 
from PIC. Similarly, PIC must be informed of which investigative reports 
were disseminated. (This is normally done by sending PIC a copy of the 
letter of transmittal.)

                                8. Scope

    a. LAA. The scope of investigation is 10 years or from age 18, 
whichever is the shortest period.
    b. Post-Adjudication Cases. There is no standard scope. The 
inquiries conducted will be limited to those necessary to resolve the 
issue(s).

                       9. Case Closing: LAA and PA

    a. Whether the investigative component or PIC closes out an 
investigation, there are three key elements to consider:
    (1) The investigative results must be reviewed for quality and 
conformance to policy.
    (2) The results must be sent to the activity listed in the ``Results 
to'' block of the DD Form 1879.
    (3) PIC must be informed whether or not any dissemination was made 
by the investigative agency and, if so, what reports were furnished.
    b. Investigative results may also be sent to a requester or higher 
level activity that makes a statement of need for the results. In such 
instances, a copy of the letter requesting the results and the 
corresponding letter of transmittal must be sent to PIC for retention.
    c. When an investigative agency disseminates reports for PIC, it may 
use the transmittal documents, letters, or cover sheets it customarily 
uses for its own cases.
    d. The material that is to be provided to PIC will consist of: The 
originals of all reports, and all other case documentation such as 
original statements, confidential source sheets, interview logs, 
requests for investigation, letters of transmittal to adjudicaters/
requesters, or communications with the requester, such as those that 
modify the scope of the investigation.
    e. For DIS to fulfill its responsibilities under DoD 5220.22-R and 
the Privacy Act of 1974 all inquiries conducted in its behalf must be 
set forth in an ROI for the permanent file, whether the case is 
completed, terminated early, or referred to another agency.

                              10. Referral

    A case may require premature closing at any time after receipt of 
the DD Form 1879 by the investigative component if the information 
accompanying the request, or that which is later developed, is outside 
DIS jurisdiction. For example, alleged violations of law, a 
counterintelligence matter, or actual coercion/influence in a hostage 
situation (see paragraph 4.b. of this Appendix ) must be referred to the 
appropriate agency, and DIS involvement terminated. The requester will 
be informed by letter or indorsement to the DD Form 1879 of the 
information developed that, due to jurisdictional consideration, the 
case was referred to (fill in appropriate address) and that the DIS case 
is closed. The agency to which referral was made and PIC will be 
furnished with the results of all investigations conducted under DIS 
auspices. DIS, however, has an interest in the referral agency's actions 
and no information should be solicited from that agency.

[[Page 774]]

    Appendix J to Part 154--ADP Position Categories and Criteria for 
                          Designating Positions

    OMB Circular A-71 (and Transmittal Memo B1), July 1978 OMB Circular 
A-130, December 12, 1985, and FPM Letter 732, November 14, 1978 contain 
the criteria for designating positions under the existing categories 
used in the personnel security program for Federal civilian employees as 
well as the criteria for designating ADP and ADP related positions. This 
policy is outlined below:

                         ADP Position Categories

                     1. Critical-Sensitive Positions

    ADP-I positions. Those positions in which the incumbent is 
responsible for the planning, direction, and implementation of a 
computer security program; major responsibility for the direction, 
planning and design of a computer system, including the hardware and 
software; or, can access a system during the operation or maintenance in 
such a way, and with a relatively high risk for causing grave damage, or 
realize a significant personal gain.

                   2. Noncritical-Sensitive Positions

    ADP-II positions. Those positions in which the incumbent is 
responsible for the direction, planning, design, operation, or 
maintenance of a computer system, and whose work is technically reviewed 
by a higher authority of the ADP-I category to insure the integrity of 
the system.

                        3. Nonsensitive Positions

    ADP-III positions. All other positions involved in computer 
activities.
    In establishing the categories of positions, other factors may enter 
into the determination, permitting placement in higher or lower 
categories based on the agency's judgement as to the unique 
characteristics of the system or the safeguards protecting the system.

                   Criteria for Designating Positions

    Three categories have been established for designating computer and 
computer-related positions--ADP-I, ADP-II, and ADP-III. Specific 
criteria for assigning positions to one of these categories is as 
follows:

                                                                        
------------------------------------------------------------------------
            Category                             Criteria               
------------------------------------------------------------------------
ADP-I..........................  Responsibility or the development and  
                                  administration of agency computer     
                                  security programs, and also including 
                                  direction and control of risk analysis
                                  and/or threat assessment.             
                                 Significant involvement in life-       
                                  critical or mission-critical systems. 
                                 Significant involvement in life-       
                                  critical or mission-critical systems. 
                                 Responsibility for the preparation or  
                                  approval of data for input into a     
                                  system which does not necessarily     
                                  involve personal access to the system,
                                  but with relatively high risk for     
                                  effecting grave damage or realizing   
                                  significant personal gain.            
                                 Relatively high risk assignments       
                                  associated with or directly involving 
                                  the accounting, disbursement, or      
                                  authorization for disbursement from   
                                  systems of (1) dollar amounts of $10  
                                  million per year or greater, or (2)   
                                  lesser amounts if the activities of   
                                  the individual are not subject to     
                                  technical review by higher authority  
                                  in the ADP-I category to ensure the   
                                  integrity of the system.              
                                 Positions involving major              
                                  responsibility for the direction      
                                  planning, design, testing,            
                                  maintenance, operation, monitoring,   
                                  and/or management of systems hardware 
                                  and software.                         
                                 Other positions as designated by the   
                                  agency head that involve relatively   
                                  high risk for effecting grave damage  
                                  or realizing significant personal     
                                  gain.                                 
ADP-II.........................  Responsibility for systems design,     
                                  operation, testing, maintenance, and/ 
                                  or monitoring that is carried out     
                                  under technical review of higher      
                                  authority in the ADP-I category,      
                                  includes, but is not limited to:      
                                 (1) access to and/or processing of     
                                  proprietary data, information         
                                  requiring protection under the Privacy
                                  Act of 1974, and Government-developed 
                                  privileged information involving the  
                                  award of contracts;                   
                                 (2) accounting, disbursement, or       
                                  authorization for disbursement from   
                                  systems of dollar amounts less than   
                                  $10 million per year. Other positions 
                                  are designated by the agency head that
                                  involve a degree of access to a system
                                  that creates a significant potential  
                                  for damage or personal gain less than 
                                  that in ADP-I positions.              
ADP-III........................  All other positions involved in Federal
                                  computer activities.                  
------------------------------------------------------------------------



PART 155--DEFENSE INDUSTRIAL PERSONNEL SECURITY CLEARANCE PROGRAM--Table of Contents




Sec.
155.1  Purpose.
155.2  Applicability and scope.
155.3  Definitions.
155.4  Policy.
155.5  Responsibilities.
155.6  Procedures.

Appendix A to Part 155--Additional Procedural Guidance

    Authority: E.O. 10865, 3 CFR 1959-1963 Comp., p. 398, as amended by 
E.O. 10909, 3 CFR 1959-1963 Comp., p. 437; E.O. 11382, 3 CFR 1966-1970 
Comp., p. 690; and E.O. 12829, 3 CFR 1993 Comp., p. 570.

    Source: 57 FR 5383, Feb. 14, 1992, unless otherwise noted.

[[Page 775]]



Sec. 155.1  Purpose.

    This part updates policy, responsibilities, and procedures of the 
Defense Industrial Personnel Security Clearance Review Program 
implementing E.O. 10865, as amended.
[57 FR 5383, Feb. 14, 1992, as amended at 59 FR 48565, Sept. 22, 1994]



Sec. 155.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense, the Military 
Departments, the Chairman of the Joint Chiefs of Staff and the Joint 
Staff, the Inspector General of the Department of Defense (IG, DoD), and 
the Defense Agencies (hereafter referred to collectively as ``the DoD 
Components'').
    (b) By mutual agreement, also extends to other Federal Agencies that 
include:

(1) Department of Agriculture.
(2) Department of Commerce.
(3) Department of Interior.
(4) Department of Justice.
(5) Department of Labor.
(6) Department of State.
(7) Department of Transportation.
(8) Department of Treasury.
(9) Environmental Protection Agency.
(10) Federal Emergency Management Agency.
(11) Federal Reserve System.
(12) General Accounting Office.
(13) General Services Administration.
(14) National Aeronautics and Space Administration.
(15) National Science Foundation.
(16) Small Business Administration.
(17) United States Arms Control and Disarmament Agency.
(18) United States Information Agency.
(19) United States International Trade Commission.
(20) United States Trade Representative.

    (c) Applies to cases that the Defense Industrial Security Clearance 
Office (DISCO) forwards to the ``Defense Office of Hearings and Appeals 
(DOHA)'' for action under this part to determine whether it is clearly 
consistent with the national interest to grant or continue a security 
clearance for the applicant.
    (d) Provides a program that may be extended to other security cases 
at the direction of the Assistant Secretary of Defense for Command, 
Control, Communications, and Intelligence (ASD(C\3\I)).
    (e) Does not apply to cases in which:
    (1) A security clearance is withdrawn because the applicant no 
longer has a need for access to classified information;
    (2) An interim security clearance is withdrawn by the DISCO during 
an investigation; or
    (3) A security clearance is withdrawn for administrative reasons 
that are without prejudice as to a later determination of whether the 
grant or continuance of the applicant's security clearance would be 
clearly consistent with the national interest.
    (f) Does not apply to cases for access to sensitive compartmented 
information or a special access program.
[57 FR 5383, Feb. 14, 1992, as amended at 59 FR 35464, July 12, 1994]



Sec. 155.3  Definitions.

    (a) Applicant. Any U.S. citizen who holds or requires a security 
clearance or any immigrant alien who holds or requires a limited access 
authorization for access to classified information needed in connection 
with his or her employment in the private sector; any U.S. citizen who 
is a direct-hire employee or selectee for a position with the North 
Atlantic Treaty Organization (NATO) and who holds or requires NATO 
certificates of security clearance or security assurances for access to 
U.S. or foreign classified information; or any U.S. citizen nominated by 
the Red Cross or United Service Organizations for assignment with the 
Military Services overseas. The term ``applicant'' does not apply to 
those U.S. citizens who are seconded to NATO by U.S. Departments and 
Agencies or to U.S. citizens recruited through such Agencies in response 
to a request from NATO.
    (b) Clearance Decision. A decision made in accordance with this part 
concerning whether it is clearly consistent with the national interest 
to grant an applicant a security clearance for access to Confidential, 
Secret, or Top Secret information. A favorable clearance decision 
establishes eligibility of the applicant to be granted a security 
clearance for access at the level governed by the documented need for 
such

[[Page 776]]

access, and the type of investigation specified for that level in 32 CFR 
part 154. An unfavorable clearance decision denies any application for a 
security clearance and revokes any existing security clearance, thereby 
preventing access to classified information at any level and the 
retention of any existing security clearance.



Sec. 155.4  Policy.

    It is DoD policy that:
    (a) All proceedings provided for by this part shall be conducted in 
a fair and impartial manner.
    (b) A clearance decision reflects the basis for an ultimate finding 
as to whether it is clearly consistent with the national interest to 
grant or continue a security clearance for the applicant.
    (c) Except as otherwise provided for by E.O. 10865, as amended, or 
this part, a final unfavorable clearance decision shall not be made 
without first providing the applicant with:
    (1) Notice of specific reasons for the proposed action.
    (2) An opportunity to respond to the reasons.
    (3) Notice of the right to a hearing and the opportunity to cross-
examine persons providing information adverse to the applicant.
    (4) Opportunity to present evidence on his or her own behalf, or to 
be represented by counsel or personal representative.
    (5) Written notice of final clearance decisions.
    (6) Notice of appeal procedures.
    (d) Actions pursuant to this part shall cease upon termination of 
the applicant's need for access to classified information except in 
those cases in which:
    (1) A hearing has commenced;
    (2) A clearance decision has been issued; or
    (3) The applicant's security clearance was suspended and the 
applicant provided a written request that the case continue.
[57 FR 5383, Feb. 14, 1992, as amended at 59 FR 48565, Sept. 22, 1994]



Sec. 155.5  Responsibilities.

    (a) The Assistant Secretary of Defense of Command, Control, 
Communications and Intelligence shall:
    (1) Establish investigative policy and adjudicative standards and 
oversee their application.
    (2) Coordinate with the General Counsel of the Department of Defense 
(GC, DoD) on policy affecting clearance decisions.
    (3) Issue clarifying guidance and instructions as needed.
    (b) The General Counsel of the Department of Defense shall:
    (1) Establish guidance and provide oversight as to legal sufficiency 
of procedures and standards established by this part.
    (2) Establish the organization and composition of the DOHA.
    (3) Designate a civilian attorney to be the Director, DOHA.
    (4) Issue clarifying guidance and instructions as needed.
    (5) Administer the program established by this part.
    (6) Issue invitational travel orders in appropriate cases to persons 
to appear and testify who have provided oral or written statements 
adverse to the applicant relating to a controverted issue.
    (7) Designate attorneys to be Department Counsels assigned to the 
DOHA to represent the Government's interest in cases and related matters 
within the applicability and scope of this part.
    (8) Designate attorneys to be Administrative Judges assigned to the 
DOHA.
    (9) Designate attorneys to be Administrative Judge members of the 
DOHA Appeal Board.
    (10) Provide for supervision of attorneys and other personnel 
assigned or attached to the DOHA.
    (11) Develop and implement policy established or coordinated with 
the GC, DoD, in accordance with this part.
    (12) Establish and maintain qualitative and quantitative standards 
for all work by DOHA employees arising within the applicability and 
scope of this part.
    (13) Ensure that the Administrative Judges and Appeal Board members 
have the requisite independence to render fair and impartial decisions 
consistent with DoD policy.

[[Page 777]]

    (14) Provide training, clarify policy, or initiate personnel 
actions, as appropriate, to ensure that all DOHA decisions are made in 
accordance with policy, procedures, and standards established by this 
part.
    (15) Provide for maintenance and control of all DOHA records.
    (16) Take actions as provided for in Sec. 155.6(b), and the 
additional procedural guidance in appendix A to this part.
    (17) Establish and maintain procedures for timely assignment and 
completion of cases.
    (18) Issue guidance and instructions, as needed, to fulfill the 
foregoing responsibilities.
    (19) Designate the Director, DOHA, to implement paragraphs (b)(5) 
through (b)(18) of this section, under general guidance of the GC, DoD.
    (c) The Heads of the DoD Components shall provide (from resources 
available to the designated DoD Component) financing, personnel, 
personnel spaces, office facilities, and related administrative support 
required by the DOHA.
    (d) The ASD(C\3\I) shall ensure that cases within the scope and 
applicability of this part are referred promptly to the DOHA, as 
required, and that clearance decisions by the DOHA are acted upon 
without delay.
[57 FR 5383, Feb. 14, 1992, as amended at 59 FR 35464, July 12, 1994]



Sec. 155.6  Procedures.

    (a) Applicants shall be investigated in accordance with the 
standards in 32 CFR part 154.
    (b) An applicant is required to give, and to authorize others to 
give, full, frank, and truthful answers to relevant and material 
questions needed by the DOHA to reach a clearance decision and to 
otherwise comply with the procedures authorized by this part. The 
applicant may elect on constitutional or other grounds not to comply; 
but refusal or failure to furnish or authorize the providing of relevant 
and material information or otherwise cooperate at any stage in the 
investigation or adjudicative process may prevent the DOHA from making a 
clearance decision. If an applicant fails or refuses to:
    (1) Provide relevant and material information or to authorize others 
to provide such information; or
    (2) Proceed in a timely or orderly fashion in accordance with this 
part; or
    (3) Follow directions of an Administrative Judge or the Appeal 
Board; then the Director, DOHA, or designee, may revoke any security 
clearance held by the applicant and discontinue case processing. 
Requests for resumption of case processing and reinstatement of a 
security clearance may be approved by the Director, DOHA, only upon a 
showing of good cause. If the request is denied, in whole or in part, 
the decision is final and bars reapplication for a security clearance 
for 1 year from the date of the revocation.
    (c) Each clearance decision must be a fair and impartial common 
sense determination based upon consideration of all the relevant and 
material information and the pertinent criteria in 32 CFR 154.7 and 
adjudication policy in appendix H to 32 CFR part 154, including as 
appropriate:
    (1) Nature and seriousness of the conduct and surrounding 
circumstances.
    (2) Frequency and recency of the conduct.
    (3) Age of the applicant.
    (4) Motivation of the applicant, and the extent to which the conduct 
was negligent, willful, voluntary, or undertaken with knowledge of the 
consequences involved.
    (5) Absence or presence of rehabilitation.
    (6) Probability that the circumstances or conduct will continue or 
recur in the future.
    (d) Whenever there is a reasonable basis for concluding that an 
applicant's continued access to classified information poses an imminent 
threat to the national interest, any security clearance held by the 
applicant may be suspended by the ASD(C\3\I), with the concurrence of 
the GC, DoD, pending a final clearance decision. This suspension may be 
rescinded by the same authorities upon presentation of additional 
information that conclusively demonstrates that an imminent threat to 
the national interest no longer exists. Procedures in appendix A to this 
part shall be expedited whenever an applicant's security clearance has 
been suspended pursuant to this section.
    (e) Nothing contained in this part shall limit or affect the 
responsibility

[[Page 778]]

and powers of the Secretary of Defense or the head of another Department 
or Agency to deny or revoke a security clearance when the security of 
the nation so requires. Such authority may not be delegated and may be 
exercised only when the Secretary of Defense or the head of another 
Department or Agency determines that the hearing procedures and other 
provisions of this part cannot be invoked consistent with the national 
security. Such a determination shall be conclusive.
    (f) Additional procedural guidance is in appendix A to this part.
[57 FR 5383, Feb. 14, 1992, as amended at 59 FR 35464, July 12, 1994]

         Appendix A to Part 155--Additional Procedural Guidance

    1. When the DISCO cannot affirmatively find that it is clearly 
consistent with the national interest to grant or continue a security 
clearance for an applicant, the case will be promptly referred to the 
DOHA.
    2. Upon referral, the DOHA shall make a prompt determination whether 
to grant or continue a security clearance, issue a statement of reasons 
(SOR) as to why it is not clearly consistent with the national interest 
to do so, or take interim actions, including but not limited to:
    a. Direct further investigation.
    b. Propound written interrogatories to the applicant or other 
persons with relevant information.
    c. Requiring the applicant to undergo a medical evaluation by a DoD 
Psychiatric Consultant.
    d. Interviewing the applicant.
    3. An unfavorable clearance decision shall not be made unless the 
applicant has been provided with a written SOR that shall be as detailed 
and comprehensive as the national security permits. A letter of 
instruction with the SOR shall explain that the applicant or Department 
Counsel may request a hearing. It shall also explain the adverse 
consequences for failure to respond to the SOR within the prescribed 
time frame.
    4. The applicant must submit a detailed written answer to the SOR 
under oath or affirmation that shall admit or deny each listed 
allegation. A general denial or other similar answer is insufficient. To 
be entitled to a hearing, the applicant must specifically request a 
hearing in his or her answer. The answer must be received by the DOHA 
within 20 days from receipt of the SOR. Requests for an extension of 
time to file an answer may be submitted to the Director, DOHA, or 
designee, who in turn may grant the extension only upon a showing of 
good cause.
    5. If the applicant does not file a timely and responsive answer to 
the SOR, the Director, DOHA, or designee, may discontinue processing the 
case, deny issuance of the requested security clearance, and direct the 
DISCO to revoke any security clearance held by the applicant.
    6. Should review of the applicant's answer to the SOR indicate that 
allegations are unfounded, or evidence is insufficient for further 
processing, Department Counsel shall take such action as appropriate 
under the circumstances, including but not limited to withdrawal of the 
SOR and transmittal to the Director for notification of the DISCO for 
appropriate action.
    7. If the applicant has not requested a hearing with his or her 
answer to the SOR and Department Counsel has not requested a hearing 
within 20 days of receipt of the applicant's answer, the case shall be 
assigned to an Administrative Judge for a clearance decision based on 
the written record. Department Counsel shall provide the applicant with 
a copy of all relevant and material information that could be adduced at 
a hearing. The applicant shall have 30 days from receipt of the 
information in which to submit a documentary response setting forth 
objections, rebuttal, extenuation, mitigation, or explanation, as 
appropriate.
    8. If a hearing is requested by the applicant or Department Counsel, 
the case shall be assigned to an Administrative Judge for a clearance 
decision based on the hearing record. Following issuance of a notice of 
hearing by the Administrative Judge, or designee, the applicant shall 
appear in person with or without counsel or a personal representative at 
a time and place designated by the notice of hearing. The applicant 
shall have a reasonable time to prepare his or her case. The applicant 
shall be notified at least 15 days in advance of the time and place of 
the hearing, which generally shall be held at a location in the United 
States within a metropolitan area near the applicant's place of 
employment or residence. A continuance may be granted by the 
Administrative Judge only for good cause. Hearings may be held outside 
of the United States in NATO cases, or in other cases upon a finding of 
good cause by the Director, DOHA, or designee.
    9. The Administrative Judge may require a prehearing conference.
    10. The Administrative Judge may rule on questions of procedure, 
discovery, and evidence and shall conduct all proceedings in a fair, 
timely, and orderly manner.
    11. Discovery by the applicant is limited to non-privileged 
documents and materials subject to control by the DOHA. Discovery by 
Department Counsel after issuance of an SOR may be granted by the 
Administrative Judge only upon a showing of good cause.
    12. A hearing shall be open except when the applicant requests that 
it be closed, or when

[[Page 779]]

the Administrative Judge determines that there is a need to protect 
classified information or there is other good cause for keeping the 
proceeding closed. No inference shall be drawn as to the merits of a 
case on the basis of a request that the hearing be closed.
    13. As far in advance as practical, Department Counsel and the 
applicant shall serve one another with a copy of any pleading, proposed 
documentary evidence, or other written communication to be submitted to 
the Administrative Judge.
    14. Department Counsel is responsible for presenting witnesses and 
other evidence to establish facts alleged in the SOR that have been 
controverted.
    15. The applicant is responsible for presenting witnesses and other 
evidence to rebut, explain, extenuate, or mitigate facts admitted by the 
applicant or proven by Department Counsel, and has the ultimate burden 
of persuasion as to obtaining a favorable clearance decision.
    16. Witnesses shall be subject to cross-examination.
    17. The SOR may be amended at the hearing by the Administrative 
Judge on his or her own motion, or upon motion by Department Counsel or 
the applicant, so as to render it in conformity with the evidence 
admitted or for other good cause. When such amendments are made, the 
Administrative Judge may grant either party's request for such 
additional time as the Administrative Judge may deem appropriate for 
further preparation or other good cause.
    18. The Administrative Judge hearing the case shall notify the 
applicant and all witnesses testifying that 18 U.S.C. 1001 is 
applicable.
    19. The Federal Rules of Evidence (28 U.S.C. 101 et seq.) shall 
serve as a guide. Relevant and material evidence may be received subject 
to rebuttal, and technical rules of evidence may be relaxed, except as 
otherwise provided herein, to permit the development of a full and 
complete record.
    20. Official records or evidence compiled or created in the regular 
course of business, other than DoD personnel background reports of 
investigation (ROI), may be received and considered by the 
Administrative Judge without authenticating witnesses, provided that 
such information has been furnished by an investigative agency pursuant 
to its responsibilities in connection with assisting the Secretary of 
Defense, or the Department or Agency head concerned, to safeguard 
classified information within industry under to E.O. 10865, as amended. 
An ROI may be received with an authenticating witness provided it is 
otherwise admissible under the Federal Rules of Evidence (28 U.S.C. 101 
et seq.).
    21. Records that cannot be inspected by the applicant because they 
are classified may be received and considered by the Administrative 
Judge, provided the GC, DoD, has:
    a. Made a preliminary determination that such evidence appears to be 
relevant and material.
    b. Determined that failure to receive and consider such evidence 
would be substantially harmful to the national security.
    22. A written or oral statement adverse to the applicant on a 
controverted issue may be received and considered by the Administrative 
Judge without affording an opportunity to cross-examine the person 
making the statement orally, or in writing when justified by the 
circumstances, only in either of the following circumstances:
    a. If the head of the Department or Agency supplying the statement 
certifies that the person who furnished the information is a 
confidential informant who has been engaged in obtaining intelligence 
information for the Government and that disclosure of his or her 
identity would be substantially harmful to the national interest; or
    b. If the GC, DoD, has determined the statement concerned appears to 
be relevant, material, and reliable; failure to receive and consider the 
statement would be substantially harmful to the national security; and 
the person who furnished the information cannot appear to testify due to 
the following:
    (1) Death, severe illness, or similar cause, in which case the 
identity of the person and the information to be considered shall be 
made available to the applicant; or
    (2) Some other cause determined by the Secretary of Defense, or when 
appropriate by the Department or Agency head, to be good and sufficient.
    23. Whenever evidence is received under item 21. or 22., the 
applicant shall be furnished with as comprehensive and detailed a 
summary of the information as the national security permits. The 
Administrative Judge and Appeal Board may make a clearance decision 
either favorable or unfavorable to the applicant based on such evidence 
after giving appropriate consideration to the fact that the applicant 
did not have an opportunity to confront such evidence, but any final 
determination adverse to the applicant shall be made only by the 
Secretary of Defense, or the Department or Agency head, based on a 
personal review of the case record.
    24. A verbatim transcript shall be made of the hearing. The 
applicant shall be furnished one copy of the transcript, less the 
exhibits, without cost.
    25. The Administrative Judge shall make a written clearance decision 
in a timely manner setting forth pertinent findings of fact, policies, 
and conclusions as to the allegations in the SOR, and whether it is 
clearly consistent with the national interest to grant or continue a 
security clearance for the applicant. The applicant and Department

[[Page 780]]

Counsel shall each be provided a copy of the clearance decision. In 
cases in which evidence is received under items 21. and 22., the 
Administrative Judge's written clearance decision may require deletions 
in the interest of national security.
    26. If the Administrative Judge decides that it is clearly 
consistent with the national interest for the applicant to be granted or 
to retain a security clearance, the DISCO shall be so notified by the 
Director, DOHA, or designee, when the clearance decision becomes final 
in accordance with item 36., below.
    27. If the Administrative Judge decides that it is not clearly 
consistent with the national interest for the applicant to be granted or 
to retain a security clearance, the Director, DOHA, or designee, shall 
expeditiously notify the DISCO, which shall in turn notify the 
applicant's employer of the denial or revocation of the applicant's 
security clearance. The letter forwarding the Administrative Judge's 
clearance decision to the applicant shall advise the applicant that 
these actions are being taken, and that the applicant may appeal the 
Administrative Judge's clearance decision.
    28. The applicant or Department Counsel may appeal the 
Administrative Judge's clearance decision by filing a written notice of 
appeal with the Appeal Board within 15 days after the date of the 
Administrative Judge's clearance decision. A notice of appeal received 
after 15 days from the date of the clearance decision shall not be 
accepted by the Appeal Board, or designated Board Member, except for 
good cause. A notice of cross appeal may be filed with the Appeal Board 
within 10 days of receipt of the notice of appeal. An untimely cross 
appeal shall not be accepted by the Appeal Board, or designated Board 
Member, except for good cause.
    29. Upon receipt of a notice of appeal, the Appeal Board shall be 
provided the case record. No new evidence shall be received or 
considered by the Appeal Board.
    30. After filing a timely notice of appeal, a written appeal brief 
must be received by the Appeal Board within 45 days from the date of the 
Administrative Judge's clearance decision. The appeal brief must state 
the specific issue or issues being raised, and cite specific portions of 
the case record supporting any alleged error. A written reply brief, if 
any, must be filed within 20 days from receipt of the appeal brief. A 
copy of any brief filed must be served upon the applicant or Department 
Counsel, as appropriate.
    31. Requests for extension of time for submission of briefs may be 
submitted to the Appeal Board or designated Board Member.
    A copy of any request for extension of time must be served on the 
opposing party at the time of submission. The Appeal Board, or 
designated Board Member, shall be responsible for controlling the Appeal 
Board's docket, and may enter an order dismissing an appeal in an 
appropriate case or vacate such an order upon a showing of good cause.
    32. The Appeal Board shall address the material issues raised by the 
parties to determine whether harmful error occurred. Its scope of review 
shall be to determine whether or not:
    a. The Administrative Judge's findings of fact are supported by such 
relevant evidence as a reasonable mind might accept as adequate to 
support a conclusion in light of all the contrary evidence in the same 
record. In making this review, the Appeal Board shall give deference to 
the credibility determinations of the Administrative Judge;
    b. The Administrative Judge adhered to the procedures required by 
E.O. 10865, as amended and this part; or
    c. The Administrative Judge's rulings or conclusions are arbitrary, 
capricious, or contrary to law.
    33. The Appeal Board shall issue a written clearance decision 
addressing the material issues raised on appeal. The Appeal Board shall 
have authority to:
    a. Affirm the decision of the Administrative Judge;
    b. Remand the case to an Administrative Judge to correct identified 
error. If the case is remanded, the Appeal Board shall specify the 
action to be taken on remand; or
    c. Reverse the decision of the Administrative Judge if correction of 
identified error mandates such action.
    34. A copy of the Appeal Board's written clearance decision shall be 
provided to the parties. In cases in which evidence was received under 
items 21. and 22., the Appeal Board's clearance decision may require 
deletions in the interest of national security.
    35. Upon remand, the case file shall be assigned to an 
Administrative Judge for correction of error(s) in accordance with the 
Appeal Board's clearance decision. The assigned Administrative Judge 
shall make a new clearance decision in the case after correcting the 
error(s) identified by the Appeal Board. The Administrative Judge's 
clearance decision after remand shall be provided to the parties. The 
clearance decision after remand may be appealed pursuant to items 28. to 
35.
    36. A clearance decision shall be considered final when:
    a. A security clearance is granted or continued pursuant to item 2.;
    b. No timely notice of appeal is filed;
    c. No timely appeal brief is filed after a notice of appeal has been 
filed;
    d. The appeal has been withdrawn;
    e. When the Appeal Board affirms or reverses an Administrative 
Judge's clearance decision; or

[[Page 781]]

    f. When a decision has been made by the Secretary of Defense, or the 
Department or Agency head, under item 23.
    The Director, DOHA, or designee, shall notify the DISCO of all final 
clearance decisions.
    37. An applicant whose security clearance has been finally denied or 
revoked by the DOHA is barred from reapplication for 1 year from the 
date of the initial unfavorable clearance decision.
    38. A reapplication for a security clearance must be made initially 
by the applicant's employer to the DISCO and is subject to the same 
processing requirements as those for a new security clearance 
application. The applicant shall thereafter be advised he is responsible 
for providing the Director, DOHA, with a copy of any adverse clearance 
decision together with evidence that circumstances or conditions 
previously found against the applicant have been rectified or 
sufficiently mitigated to warrant reconsideration.
    39. If the Director, DOHA, determines that reconsideration is 
warranted, the case shall be subject to this part for making a clearance 
decision.
    40. If the Director, DOHA, determines that reconsideration is not 
warranted, the DOHA shall notify the applicant of this decision. Such a 
decision is final and bars further reapplication for an additional one 
year period from the date of the decision rejecting the application.
    41. Nothing in this part is intended to give an applicant reapplying 
for a security clearance any greater rights than those applicable to any 
other applicant under this part.
    42. An applicant may file a written petition, under oath or 
affirmation, for reimbursement of loss of earnings resulting from the 
suspension, revocation, or denial of his or her security clearance. The 
petition for reimbursement must include as an attachment the favorable 
clearance decision and documentation supporting the reimbursement claim. 
The Director, DOHA, or designee, may in his or her discretion require 
additional information from the petitioner.
    43. Claims for reimbursement must be filed with the Director, DOHA, 
or designee, within 1 year after the date the security clearance is 
granted. Department Counsel generally shall file a response within 60 
days after receipt of applicant's petition for reimbursement and provide 
a copy thereof to the applicant.
    44. Reimbursement is authorized only if the applicant demonstrates 
by clear and convincing evidence to the Director, DOHA, that all of the 
following conditions are met:
    a. The suspension, denial, or revocation was the primary cause of 
the claimed pecuniary loss; and
    b. The suspension, denial, or revocation was due to gross negligence 
of the Department of Defense at the time the action was taken, and not 
in any way by the applicant's failure or refusal to cooperate.
    45. The amount of reimbursement shall not exceed the difference 
between the earnings of the applicant at the time of the suspension, 
revocation, or denial and the applicant's interim earnings, and further 
shall be subject to reasonable efforts on the part of the applicant to 
mitigate any loss of earnings. No reimbursement shall be allowed for any 
period of undue delay resulting from the applicant's acts or failure to 
act. Reimbursement is not authorized for loss of merit raises and 
general increases, loss of employment opportunities, counsel's fees, or 
other costs relating to proceedings under this part.
    46. Claims approved by the Director, DOHA, shall be forwarded to the 
Department or Agency concerned for payment. Any payment made in response 
to a claim for reimbursement shall be in full satisfaction of any 
further claim against the United States or any Federal Department or 
Agency, or any of its officers or employees.
    47. Clearance decisions issued by Administrative Judges and the 
Appeal Board shall be indexed and made available in redacted form to the 
public.
[57 FR 5383, Feb. 14, 1992, as amended at 59 FR 35464, July 12, 1994; 59 
FR 48565, Sept. 22, 1994]



PART 156--DEPARTMENT OF DEFENSE PERSONNEL SECURITY PROGRAM (DoDPSP)--Table of Contents




Sec.
156.1  Purpose.
156.2  Applicability and scope.
156.3  Policy
156.4  Responsibilities.

    Authority: 50 U.S.C. 781.

    Source: 58 FR 42855, Aug. 12, 1993, unless otherwise noted.



Sec. 156.1  Purpose.

    This part:
    (a) Updates the policy and responsibilities for the DoDPSP under 
Pub. L. 81-832; E.O. 10450, 18 FR 2489, 3 CFR, 1949-1953 Comp., p. 936; 
E.O. 10865, 25 FR 1583, 3 CFR, 1959-1963 Comp., p. 398; E.O. 12333, 46 
FR 59941, 3 CFR, 1981 Comp., p.200; and E.O. 12356, 47 FR 14874 and 
15557, 3 CFR 1982 Comp., p. 166.

[[Page 782]]

    (b) Continues to authorize the publication of DoD 5200.2-R \1\ in 
accordance with DoD 5025.1-M.\2\
---------------------------------------------------------------------------

    \1\ Copies may be obtained at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
    \2\ See footnote 1 to 156.1(b).
---------------------------------------------------------------------------



Sec. 156.2  Applicability and scope.

    This part applies to:
    (a) The Office of the Secretary of Defense, the Military Departments 
(including the Coast Guard when it is operating as a Military Service in 
the Navy), the Chairman of the Joint Chiefs of Staff and the Joint 
Staff, the Unified and Specified Commands, and the Defense Agencies, 
except as provided for the National Security Agency (NSA) in paragraph 
(b) of this section (hereafter referred to collectively as ``the DoD 
Components'').
    (b) The NSA is exempt from the provisions of this Directive. The 
personnel security program for the NSA is implemented pursuant to DoD 
Directive 5210.45,\3\ and internal regulations of the NSA.
---------------------------------------------------------------------------

    \3\ See footnote 1 to 156.1(b).
---------------------------------------------------------------------------

    (c) DoD military and civilian personnel, consultants to the 
Department of Defense, contractors cleared under the Defense Industrial 
Security Program (DISP) Regulations DoD 5220.22 \4\ and others 
affiliated with the Department of Defense.
---------------------------------------------------------------------------

    \4\ See footnote 1 to 156.1(b).
---------------------------------------------------------------------------



Sec. 156.3  Policy.

    It is DoD policy that:
    (a) No person shall be appointed as a civilian employee of the 
Department of Defense, accepted for entrance into the Armed Forces of 
the United States, authorized access to classified information, or 
assigned to duties that are subject to investigation under this part 
unless such appointment, acceptance, clearance, or assignment is clearly 
consistent with the interests of national security.
    (b) A personnel security clearance shall be granted and assignment 
to sensitive duties shall be authorized only to U.S. citizens. As an 
exception, a non-U.S. citizen may, by an authorized official (as 
specified in 32 CFR part 154) be assigned to sensitive duties or granted 
a Limited Access Authorization for access to classified information if 
there is a need for access in support of a specific DoD program, 
project, or contract.
    (c) The personnel security standard that shall be applied in 
determining a person's eligibility for a security clearance or 
assignment to sensitive duties is whether, based on all available 
information, the person's allegiance, trustworthiness, reliability, and 
judgment are such that the person can reasonably to expected to comply 
with Government policy and procedures for safeguarding classified 
information and performing sensitive duties.
    (d) 32 CFR part 154 shall identify those positions and duties that 
require a personnel security investigation (PSI). A PSI is required for:
    (1) Appointment to a sensitive civilian position.
    (2) Entry into military service.
    (3) The granting of a security clearance or approval for access to 
classified information.
    (4) Assignment to other duties that require a personnel security or 
trustworthiness determination.
    (5) Continuing eligibility for retention of a security clearance and 
approval for access to classified information or for assignment to other 
sensitive duties.
    (e) 32 CFR part 154 shall contain personnel security criteria and 
adjudicative guidance to assist in determining whether an individual 
meets the clearance and sensitive position standards referred to in 
paragraphs (a) and (c) of this section.
    (f) No unfavorable personnel security determination shall be made 
except in accordance with procedures set forth in 32 CFR part 154 or 32 
CFR part 155 or as otherwise authorized by law.



Sec. 156.4  Responsibilities.

    (a) The Assistant Secretary of Defense for Command, Control, 
Communications, and Intelligence shall:
    (1) Be responsible for overall policy, guidance, and control of the 
DoDPSP.
    (2) Develop and implement plans, policies, and procedures for the 
DoDPSP.
    (3) Issue and maintain DoD 5200.2-R consistent with DoD 5025.1-M.

[[Page 783]]

    (4) Conduct an active oversight program to ensure compliance with 
DoDPSP requirements.
    (5) Ensure that research is conducted to assess and improve the 
effectiveness of the DoDPSP (DoD Directive 5210.79 \5\).
---------------------------------------------------------------------------

    \5\ See footnote 1 to 156.1(b).
---------------------------------------------------------------------------

    (6) Ensure that the Defense Investigative Service is operated 
pursuant to 32 CFR part 361.
    (7) Ensure that the DoD Security Institute provides the education, 
training, and awareness support to the DoDPSP under DoD Directive 
5200.32.\6\
---------------------------------------------------------------------------

    \6\ See footnote 1 to 156.1(b).
---------------------------------------------------------------------------

    (8) Be authorized to make exceptions to the requirements of this 
part on a case-by-case basis when it is determined that doing so 
furthers the mission of the Department of Defense and is consistent with 
the protection of classified information from unauthorized disclosure.
    (b) The General Counsel of the Department of Defense shall:
    (1) Be responsible for providing advice and guidance as to the legal 
sufficiency of procedures and standards implementing the DoDPSP and the 
DISP.
    (2) Exercise oversight of PSP appeals procedures to verify that the 
rights of individuals are being protected consistent with the 
constitution, laws of the United States, Executive Orders, Directives, 
or Regulations that implement the DoDPSP and DISP, and with the 
interests of national security.
    (c) The Heads of the DoD Components shall:
    (1) Designate a senior official who shall be responsible for 
implementing the DoDPSP within their components.
    (2) Ensure that the DoDPSP is properly administered under this 
Directive within their components.
    (3) Ensure that information and recommendations are provided to the 
Assistant Secretary of Defense for Command, Control, Communications, and 
Intelligence on any aspect of the program.



PART 157--DISSEMINATION OF DoD TECHNICAL INFORMATION--Table of Contents




Sec.
157.1  Purpose.
157.2  Applicability and scope.
157.3  Policy.
157.4  Responsibilities.
157.5  Definitions.
157.6  Certification for access to technical information.

    Authority: R.S. 161, 5 U.S.C. 22.

    Source: 45 FR 17988, Mar. 25, 1980, unless otherwise noted.



Sec. 157.1  Purpose.

    This part: (a) Consolidates into one document this part and parts of 
DoD Instruction 5100.38, ``Defense Documentation Center for Scientific 
and Technical Information,'' March 29, 1965;
    (b) Supplements DoD Directive 5100.36, ``Department of Defense 
Technical Information,'' December 31, 1962, and DoD Instruction 5129.43, 
``Assignment of Functions for the Defense Scientific and Technical 
Information Program,'' January 22, 1963;
    (c) Provides policy and assigns responsibilities for the 
dissemination of DoD technical information;
    (d) Establishes certification procedures for access to DoD technical 
information.



Sec. 157.2  Applicability and scope.

    (a) The provisions of this part apply to the Office of the Secretary 
of Defense, the Military Departments, the Organization of the Joint 
Chiefs of Staff, the Unified and Specified Commands, and the Defense 
Agencies (hereafter referred to as ``DoD Components''), and other U.S. 
Government agencies disseminating or requesting access to DoD technical 
information.
    (b) The procedures established by this part shall be used by 
technical Information Dissemination Activities to control access to DoD 
technical information. The access afforded through use of these 
procedures does not override special consideration or approvals that 
affect the flow of controlled information.
    (c) This part does not apply to primary distribution of technical 
information or to interlibrary loan within Department of Defense.



Sec. 157.3  Policy.

    The purpose of the DoD Technical Information Program is to ensure 
the complete and timely exchange among

[[Page 784]]

DoD technical activities, including both the in-house and DoD contractor 
communities, of all technical information generated by or relevant to 
the pursuit of DoD technical programs with due consideration of security 
requirements and access restrictions. All DoD Components responsible for 
dissemination of technical information shall make a positive effort to 
provide users accurate and timely technical information, utilizing the 
most effective media, including symposia, newsletters, technical 
reports, inquiry responses, online data networks, consultation and other 
media, and making optimum use of computer technology to store, sort, 
select, and package data and information.



Sec. 157.4  Responsibilities.

    (a) The Under Secretary of Defense for Research and Engineering 
(USDRE), or designee, the Deputy Under Secretary of Defense for Research 
and Engineering (Research and Advanced Technology) shall:
    (1) Manage and disseminate DoD technical information, as provided in 
DoD Directive 5100.36, ``Department of Defense Technical Information,'' 
December 31, 1962.
    (2) Approve service charges collected by Information Dissemination 
Activities to provide partial reimbursement and to prevent excessive, 
unwarranted use of these services.
    (b) The Heads of DoD Components shall:
    (1) Pursue organized, coordinated, and comprehensive programs for 
technical information dissemination. These programs shall provide for 
the interchange of technical information within Department of Defense; 
between Department of Defense and other Federal agencies and their 
contractors; among Department of Defense, NATO governments and other 
allies; and between Department of Defense and the national and 
international scientific and technical community in accordance with DoD 
5200.1-R, ``Information Security Program Regulation,'' December 1978, 
and parts 286 and 286a of this title.
    (2) Within the limits of security and access restrictions necessary 
to ensure adequate intra-DoD technical information exchange.
    (i) Vigorously pursue a policy that ensures that technical 
information generated within activities under their cognizance is 
provided for public use through appropriate Federal agencies and 
technology transfer programs according to approved DoD clearance 
procedures; and
    (ii) Wherever possible, provide unclassified technical documents and 
other information to expedite the information transfer procedures. 
However, all critical technology to which the Department of Defense has 
title or proprietary interest shall be classified at the appropriate 
level.
    (3) Certify access for DoD technical information users as described 
in Sec. 157.6.
    (4) Introduce an active technology transfer program aimed at 
transferring to the public as much DoD-developed technology as is 
consistent with the DoD mission. Active participation by DoD 
laboratories, centers, and other organizations in Federal and local 
government technology transfer organizations, such as the Federal 
Laboratory Consortium, is encouraged.
    (5) Support a program for the domestic dissemination of DoD-
developed technology that, because of its commercial significance, 
should be made available as early as possible, but only by means that 
will ensure the continued applicability of the International Traffic in 
Arms Regulations, the Export Administration Act of 1969, Export 
Administration Amendments of 1977, and the Export Administration 
Regulations of the Department of Commerce as to when the technology 
should not be exported.
    (6) Make planning and technical requirements information available 
through Industry Information Centers so that industry can plan and apply 
its resources effectively.
    (7) Make technical information on selected technologies available 
through Information Analysis Centers to support the DoD mission.
    (8) Sponsor or support technical symposia, conferences and meetings 
for disseminating technical information in accordance with DoD Directive 
5200.12,1 ``Security Sponsorship and Procedures for 
Scientific and Technical Meetings Involving Disclosure of Classified 
Military Information,'' June 15, 1979, when

[[Page 785]]

the requirement exists to disseminate the information more rapidly than 
normal publishing procedures permit. In accordance with DoD Instruction 
5129.43,\1\ ``Assignment of Functions for the Defense Scientific and 
Technical Information Program,'' January 22, 1963, certain data 
concerning DoD-sponsored technical symposia will be transmitted to the 
USDR&E.
    (9) Ensure compliance with provisions of DoD Directive 5000.11,\1\ 
which prescribes policy and procedures for the ``Data Elements and Data 
Codes Standardization Program,'' where applicable, to assigned functions 
for disseminating DoD technical information.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, 5801 Tabor Avenue, Philadelphia, PA 
19120. Attention: Code 301.
---------------------------------------------------------------------------

    (c) The Defense Technical Information Center (DTIC) shall operate 
and maintain certification and registration procedures as described in 
Sec. 157.6 and shall provide appropriate forms and instructions.
    (d) Technical information dissemination activities shall collect 
service charges, as approved by the USDRE, to prevent excessive, 
unwarranted use of their services and to provide partial reimbursement 
of costs.



Sec. 157.5  Definitions.

    (a) Technical information. Information, including scientific 
information, which relates to research, development, engineering, test, 
evaluation, production, operation, use, and maintenance of munitions and 
other military supplies and equipment.
    (b) Technical information dissemination activity. Any activity, such 
as DTIC, that operates to assist individuals and organizations within 
the Department of Defense to effect adequate and timely dissemination of 
technical information describing planned or ongoing RDT&E effort and the 
documented results of such efforts and to provide systems and services 
to assist eligible users to identify, access, acquire, and use DoD 
technical information.
    (c) Primary distribution. The initial distribution of a technical 
document after completion of the original manuscript or its equivalent.
    (d) Critical technology. Technical data, whose acquisition by a 
potential adversary would prove detrimental to the national security of 
the United States. Control of critical technology requires the control 
of associated critical end products (defined as ``keystone'') that 
embody extractable critical technology or that consist of equipment 
which completes a process line, allowing the line to be fully utilized.
    (e) Technology transfer. The process through which Government 
research and technology are transformed into processes, products, or 
services that can be applied to actual or potential public or private 
needs. It includes the application of technology that has been developed 
for a particular mission and, after modification and diversification, 
fills a different need in another environment.
    (f) Eligible user. Any DoD office, contractor, subcontractor, DoD 
potential contractor, or other U.S. Government office or its contractor 
whose eligibility and need to receive DoD technical information has been 
certified.
    (g) Contractor. An individual or organization outside the U.S. 
Government that has accepted any type of agreement or order for 
providing research, supplies, or services to a U.S. Government agency. 
The term specifically includes both prime contractors and 
subcontractors.
    (h) DoD potential contractor. An individual or organization outside 
Department of Defense declared eligible for documentation services by a 
sponsoring DoD activity on the basis of registration and active 
participation in a program specifically designed to exchange information 
concerning Defense support capability.
    (i) Industry information centers. Centers established by DoD 
Components to inform the Defense industrial community of DoD 
acquisition, research and development requirements, plans, and future 
needs. They serve as DoD access points to Defense planning and 
requirements documents for representatives of industry, small business, 
university and nonprofit institutions registered for access to DoD 
information services.
    (j) Technical information dissemination. A fundamental and integral 
part of each RDT&E effort (contractual or in-

[[Page 786]]

house) that ensures, within procedures established for security and 
other specific access restrictions, maximum utility of and access to 
technical information about and technical documents generated from 
Defense-supported RDT&E.



Sec. 157.6  Certification for access to technical information.

    (a) Policy. (1) The Department of Defense shall disseminate 
technical information in support of its technical programs and in 
support of similar programs within other U.S. Government agencies. This 
dissemination shall be made to organizations whose official U.S. 
Government affiliations are certified. Classified information 
dissemination will be within the scope of its certified field of 
interest requirements and facility clearances. However, requests from 
foreign organizations for and transmittal of classified and controlled 
information products shall be made only through appropriate DoD foreign 
release offices under established release procedures.
    (2) A uniform certification procedure shall be used for the 
effective control of the flow of technical information and shall utilize 
the DD Form 1540, ``Registration for Scientific and Technical 
Information Services,'' cited in DoD 5220.22-R, ``Industrial Security 
Regulation,'' January 1979.
    (3) Certification shall be according to subject fields and groups of 
interest and recorded on DD Form 1540. Such certification is a warranty 
that the user's oficial responsibilities require access to technical 
information that can be described by one or another of the prescribed 
DoD categories of science and technology.
    (b) Responsibilities. (1) The Defense Technical Information Center 
(DTIC) and the Defense Contract Administration Services (DCAS) shall 
operate and maintain the certification procedures and DD Forms 1540 and 
1541, ``Facility Clearance Register.''
    (i) DTIC shall:
    (A) Develop and distribute such instructions and procedural guidance 
as necessary for use by DoD Components, U.S. Government contractors and 
subcontractors, DoD potential contractors, and other U.S. Government 
offices to maintain the most effective use of the certification 
procedures within the terms of this Instruction and existing security 
regulations.
    (B) Maintain at DTIC the central authority file of eligible users 
and notify affected dissemination activities of each new eligible user, 
along with conditions and scope of coverage, and of any subsequent 
changes thereto.
    (C) Provide information products from DTIC to eligible users as 
follows:
    (a) Unclassified technical information, subject to any approvals 
that may be required for controlled information.
    (b) Classified technical information in only those subject fields of 
interest and at the security level authorized on DD Form 1540 and in 
accordance with any approvals that may be required for controlled 
information.
    (D) Recommend changes to DoD 5220.22-M,\1\ ``Industrial Security 
Manual for Safeguarding Classified Information,'' October 1977, and 
related security procedures in conformance with this part.
---------------------------------------------------------------------------

    1 See footnote 1 to Sec. 157.4(b)(8).
---------------------------------------------------------------------------

    (ii) DCAS shall certify the DD Form 1541 and report any change 
affecting a facility clearance through submission of a revised DD Form 
1541 to the central authority file.
    (2) Each DoD Component conducting, administering, or sponsoring 
research, development, test and evaluation and other technical work 
shall:
    (i) Require in-house activities to complete all parts of the DD Form 
1540 and submit it to the DTIC before requesting reports or information 
from dissemination activities. The commanding officer, the technical 
director, or their authorized designee shall review, approve, modify, or 
disapprove the registration for technical information services on DD 
Form 1540 submitted by their personnel.
    (ii) 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 of interest of the applicant.

[[Page 787]]

    (iii) Instruct and assist its sponsored activities in filling out 
and submitting DD Form 1540.
    (iv) Recommend changes to DoD 5220.22-M and related security 
procedures in conformance with this part.
    (v) Promptly report to the DTIC any changes of certification status, 
such as change in mission of the DoD Component, contract termination, 
and contract or grant revision.
    (vi) Designate an office at each appropriate level of the 
organization with responsibility for:
    (A) Providing and maintaining procedures that are responsive to this 
Instruction and with applicable security regulations.
    (B) Reviewing special cases, such as referral of questions on DD 
Form 1540 from the DTIC.
    (3) Each dissemination activity, within the scope of its mission, 
shall make its technical information available to eligible users in 
accordance with the certification terms and the applicable security and 
distribution controls.
    (c) Agencies outside the Department of Defense. (1) Components of 
non-DoD executive branch agencies who participate in the DoD Industrial 
Security Program shall follow the procedures prescribed for DoD 
Components in Sec. 157.6(b)(2) when DoD technical information is 
required.
    (2) Components of non-DoD executive branch agencies who do not 
participate in the DoD Industrial Security Program shall make specific 
arrangements with the DTIC for certification of DD Form 1540 and 
facility clearance authorization when DoD technical information is 
required.
    (3) Components of the legislative and judicial branches, their 
contractors, and their grantees who are in need of unclassified 
information shall make specific arrangements with DTIC for certification 
of DD Form 1540. Certification for classified information, if needed, 
must be approved by the Office of the Deputy Under Secretary of Defense 
for Research and Engineering (Research and Advanced Technology). In 
these cases, submission of the completed DD Form 1540 by contractors and 
grantees must be accompanied by adequate facility clearance 
authorization.



PART 158--GUIDELINES FOR SYSTEMATIC DECLASSIFICATION REVIEW OF CLASSIFIED INFORMATION IN PERMANENTLY VALUABLE DoD RECORDS--Table of Contents




Sec.
158.1  Reissuance and purpose.
158.2  Applicability and scope.
158.3  Definitions.
158.4  Policy.
158.5  Procedures.
158.6  Responsibilities.
158.7  Categories of information that require review before 
          declassification.
158.8  Categories of information that require review before 
          declassification: Department of the Army systems.
158.9  Categories of information that require review before 
          declassification: Department of the Navy systems.
158.10  Categories of information that require review before 
          declassification: Department of the Air Force systems.
158.11  Declassification considerations.
158.12  Department of State areas of interest.
158.13  Central Intelligence Agency areas of interest.

    Authority: E.O. 12356, 10 U.S.C.

    Source: 48 FR 29840, June 29, 1983, unless otherwise noted.



Sec. 158.1  Reissuance and purpose.

    This part is reissued; establishes procedures and assigns 
responsibilities for the systematic declassification review of 
information classified under E.O. 12356 and Information Security 
Oversight Office Directive No. 1, DoD Directive 5200.1 and DoD 5200.1-R, 
and prior orders, directives, and regulations governing security 
classification; and implements section 3.3 of E.O. 12356.



Sec. 158.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense 
(OSD) and to activities assigned to the OSD for administrative support, 
the Military Departments, the Organization of the Joint Chiefs of Staff, 
the Unified and Specified Commands, and the Defense Agencies (hereafter 
referred to collectively as ``DoD Components'').
    (b) This part applies to the systematic review of permanently 
valuable

[[Page 788]]

classified information, developed by or for the Department of Defense 
and its Components, or its predecessor components and activities, that 
is under the exclusive or final original classification jurisdiction of 
the Department of Defense.
    (c) Its provisions do not cover Restricted Data or Formerly 
Restricted Data under the Atomic Energy Act of 1954 or information in 
nonpermanent records.
    (d) Systematic declassification review of records pertaining to 
intelligence activities (including special activities) or intelligence 
sources or methods shall be in accordance with special procedures issued 
by the Director of Central Intelligence.



Sec. 158.3  Definitions.

    (a) Cryptologic information. Information pertaining to or resulting 
from the activities and operations involved in the production of signals 
intelligence (SIGINT) or to the maintenance of communications security 
(COMSEC).
    (b) Foreign government information. Information that is provided to 
the United States by a foreign government or governments, an 
international organization of governments, or any element thereof with 
the expectation, expressed or implied, that the information, the source 
of the information, or both are to be held in confidence; or produced by 
the United States pursuant to or as a result of a joint arrangement with 
a foreign government or governments, an international organization of 
governments, or any element thereof requiring that the information, the 
arrangement, or both are to be held in confidence.
    (c) Intelligence method. Any process, mode of analysis, means of 
gathering data, or processing system or equipment used to produce 
intelligence.
    (d) Intelligence source. A person or technical means that provides 
intelligence.



Sec. 158.4  Policy.

    It is the policy of the Department of Defense to assure that 
information that warrants protection against unauthorized disclosure is 
properly classified and safeguarded as well as to facilitate the flow of 
unclassified information about DoD operations to the public.



Sec. 158.5  Procedures.

    (a) DoD classified information that is permanently valuable, as 
defined by 44 U.S.C. 2103, that has been accessioned into the National 
Archives of the United States, will be reviewed systematically for 
declassification by the Archivist of the United States, with the 
assistance of the DoD personnel designated for that purpose, as it 
becomes 30 years old; however, file series concerning intelligence 
activities (including special activities) created after 1945, 
intelligence sources or methods created after 1945, and cryptology 
records created after 1945 will be reviewed as they become 50 years old.
    (b) All other DoD classified information and foreign government 
information that is permanently valuable and in the possession or 
control of DoD Components, including that held in Federal records 
centers or other storage areas, may be reviewed systematically for 
declassification by the DoD Component exercising control of such 
information.
    (c) DoD classified information and foreign government information in 
the possession or control of DoD Components shall be declassified when 
they become 30 years old, or 50 years old in the case of DoD 
intelligence activities (including special activities) created after 
1945, intelligence sources or methods created after 1945, or cryptology 
created after 1945, if they are not within one of the categories 
specified in Secs. 158.7 through 158.10 or in 48 FR 4403, January 31, 
1983.
    (d) Systematic review for declassification shall be in accordance 
with procedures contained in DoD 5200 1-R. Information that falls within 
any of the categories in Secs. 158.7 through 158.10 and in 44 FR 4403 
shall be declassified if the designated DoD reviewer determines, in 
light of the declassification considerations contained in Sec. 158.11 
that classification no longer is required. In the absence of such a 
declassification determination, the classification of the information 
shall continue as long as required by national security considerations.

[[Page 789]]

    (e) Before any declassification or downgrading action, DoD 
information under review should be coordinated with the Department of 
State on subjects cited in Sec. 158.12, and with the Central 
Intelligence Agency (CIA) on subjects cited in Sec. 158.13.



Sec. 158.6  Responsibilities.

    (a) The Deputy Under Secretary of Defense for Policy shall:
    (1) Exercise oversight and policy supervision over the 
implementation of this part.
    (2) Request DoD Components to review Secs. 158.7 through 158.11 of 
this part every 5 years.
    (3) Revise Secs. 158.7 through 158.11 to ensure they meet DoD needs.
    (4) Authorize, when appropriate, other Federal agencies to apply 
this part to DoD information in their possession.
    (b) The Head of each DoD Component shall:
    (1) Recommend changes to Secs. 158.7 through 158.13 of this part.
    (2) Propose, with respect to specific programs, projects, and 
systems under his or her classification jurisdiction, supplements to 
Secs. 158.7 through 158.11 of this part.
    (3) Provide advice and designate experienced personnel to provide 
timely assistance to the Archivist of the United States in the 
systematic review of records under this part.
    (c) The Director, National Security Agency/Chief, Central Security 
Service (NSA/CSS), shall develop, for approval by the Secretary of 
Defense, special procedures for systematic review and declassification 
of classified cryptologic information.
    (d) The Archivist of the United States is authorized to apply this 
part when reviewing DoD classified information that has been accessioned 
into the Archives of the United States.



Sec. 158.7  Categories of information that require review before declassification.

    The following categories of information shall be reviewed 
systematically for declassification by designated DoD review in 
accordance with this part:
    (a) Nuclear propulsion information.
    (b) Information concerning the establishment, operation, and support 
of the U.S. Atomic Energy Detection System.
    (c) Information concerning the safeguarding of nuclear materials or 
facilities.
    (d) Information that could affect the conduct of current or future 
U.S. foreign relations. (Also see Sec. 158.12.)
    (e) Information that could affect the current or future military 
usefulness of policies, programs, weapon systems, operations, or plans 
when such information would reveal courses of action, concepts, tactics, 
or techniques that are used in current operations plans.
    (f) Research, development, test, and evaluation (RDT&E) of chemical 
and biological weapons and defensive systems; specific identification of 
chemical and biological agents and munitions; chemical and biological 
warfare plans; and U.S. vulnerability to chemical or biological warfare 
attack.
    (g) Information about capabilities, installations, exercises, 
research, development, testing and evaluation, plans, operations, 
procedures, techniques, organization, training, sensitive liaison and 
relationships, and equipment concerning psychological operations; 
escape, evasion, rescue and recovery, insertion, and infiltration and 
exfiltration; cover and support; deception; unconventional warfare and 
special operations; and the personnel assigned to or engaged in these 
activities.
    (h) Information that reveals sources or methods of intelligence or 
counter-intelligence, counterintelligence activities, special 
activities, identities of clandestine human agents, methods of special 
operations, analytical techniques for the interpretation of intelligence 
data, and foreign intelligence reporting. This includes information that 
reveals the overall scope, processing rates, timeliness, and accuracy of 
intelligence systems and networks, including the means of 
interconnecting such systems and networks and their vulnerabilities.
    (i) Information that relates to intelligence activities conducted 
jointly by the Department of Defense with other Federal agencies or to 
intelligence activities conducted by other Federal agencies in which the 
Department of

[[Page 790]]

Defense has provided support. (Also see Sec. 158.13.)
    (j) Airborne radar and infrared imagery.
    (k) Information that reveals space system:
    (1) Design features, capabilities, and limitations (such as antijam 
characteristics, physical survivability features, command and control 
design details, design vulnerabilities, or vital parameters).
    (2) Concepts of operation, orbital characteristics, orbital support 
methods, network configurations, deployments, ground support facility 
locations, and force structure.
    (l) Information that reveals operational communications equipment 
and systems:
    (1) Electronic counter-counter-measures (ECCM) design features or 
performance capabilities.
    (2) Vulnerability and susceptibility to any or all types of 
electronic warfare.
    (m) Information concerning electronic intelligence, telemetry 
intelligence, and electronic warfare (electronic warfare support 
measures, electronic countermeasures (ECM), and ECCM) or related 
activities, including:
    (1) Information concerning or revealing nomenclatures, functions, 
technical characteristics, or descriptions of foreign communications and 
electronic equipment, its employment or deployment, and its association 
with weapon systems or military operations.
    (2) Information concerning or revealing the processes, techniques, 
operations, or scope of activities involved in acquiring, analyzing, and 
evaluating the above information, and the degree of success obtained.
    (n) Information concerning Department of the Army systems listed in 
Sec. 158.8.
    (o) Information concerning Department of the Navy systems listed in 
Sec. 158.9.
    (p) Information concerning Department of the Air Force systems 
listed in Sec. 158.10.
    (q) Cryptologic information (including cryptologic sources and 
methods). This includes information concerning or revealing the 
processes, techniques, operations, and scope of SIGINT comprising 
communications intelligence, electronics intelligence, and telemetry 
intelligence; and the cryptosecurity and emission security components of 
COMSEC, including the communications portion of cover and deception 
plans.
    (1) Recognition of cryptologic information may not always be an easy 
task. There are several broad classes of cryptologic information, as 
follows:
    (i) Those that relate to COMSEC. In documentary form, they provide 
COMSEC guidance or information. Many COMSEC documents and materials are 
accountable under the Communications Security Material Control System. 
Examples are items bearing transmission security (TSEC) nomenclature and 
crypto keying material for use in enciphering communications and other 
COMSEC documentation such as National COMSEC Instructions, National 
COMSEC/Emanations Security (EMSEC) Information Memoranda, National 
COMSEC Committee Policies, COMSEC Resources Program documents, COMSEC 
Equipment Engineering Bulletins, COMSEC Equipment System Descriptions, 
and COMSEC Technical Bulletins.
    (ii) Those that relate to SIGINT. These appear as reports in various 
formats that bear security classifications, sometimes followed by five-
letter codewords (World War II's ULTRA, for example) and often carrying 
warning caveats such as ``This document contains codeword material'' and 
``Utmost secrecy is necessary . . .'' Formats may appear as messages 
having addressees, ``from'' and ``to'' sections, and as summaries with 
SIGINT content with or without other kinds of intelligence and comment.
    (iii) RDT&E reports and information that relate to either COMSEC or 
SIGINT.
    (2) Commonly used words that may help in identification of 
cryptologic documents and materials are ``cipher,'' ``code,'' 
``codeword,'' ``communications intelligence'' or ``COMINT,'' 
``communications security'' or ``COMSEC,'' ``cryptanalysis,'' 
``crypto,'' ``cryptography,'' ``cryptosystem,'' ``decipher,'' 
``decode,'' ``decrypt,'' ``direction finding,'' ``electronic 
intelligence'' or

[[Page 791]]

``ELINT,'' ``electronic security,'' ``encipher,'' ``encode,'' 
``encrypt,'' ``intercept,'' ``key book,'' ``signals intelligence'' or 
``SIGINT,'' ``signal security,'' and ``TEMPEST.''



Sec. 158.8  Categories of information that require review before declassification: Department of the Army systems.

    The following categories of Army information shall be reviewed 
systematically for declassification by designated DoD reviewers in 
accordance with this part.
    (a) Ballistic Missile Defense (BMD) missile information, including 
the principle of operation of warheads (fuzing, arming, and destruct 
operations); quality or reliability requirements; threat data; 
vulnerability; ECM and ECCM); details of design, assembly, and 
construction; and principle of operations.
    (b) BMD systems data, including the concept definition (tentative 
roles, threat definition, and analysis and effectiveness); detailed 
quantitative technical system description-revealing capabilities or 
unique weaknesses that are exploitable; overall assessment of specific 
threat-revealing vulnerability or capability; discrimination technology; 
and details of operational concepts.
    (c) BMD optics information that may provide signature 
characteristics of U.S. and United Kingdom ballistic weapons.
    (d) Shaped-charge technology.
    (e) Fleshettes.
    (f) M380 Beehive round.
    (g) Electromagnetic propulsion technology.
    (h) Space weapons concepts.
    (i) Radar-fuzing programs.
    (j) Guided projectiles technology.
    (k) ECM and ECCM to weapons systems.
    (l) Armor materials concepts, designs, or research.
    (m) 2.75-inch Rocket System.
    (n) Air Defense Command and Coordination System (AN/TSQ-51).
    (o) Airborne Target Acquisition and Fire Control System.
    (p) Chaparral Missile System.
    (q) Dragon Guided Missile System Surface Attack, M47.
    (r) Forward Area Alerting Radar (FAAR) System.
    (s) Ground laser designators.
    (t) Hawk Guided Missile System.
    (u) Heliborne, Laser, Air Defense Suppression and Fire and Forget 
Guided Missile System (HELLFIRE).
    (v) Honest John Missile System.
    (w) Lance Field Artillery Missile System.
    (x) Land Combat Support System (LCSS).
    (y) M22 (SS-11 ATGM) Guided Missile System, Helicopter Armament 
Subsystem.
    (z) Guided Missile System, Air Defense (NIKE HERCULES with Improved 
Capabilities with HIPAR and ANTIJAM Improvement).
    (aa) Patriot Air Defense Missile System.
    (bb) Pershing IA Guided Missile System.
    (cc) Pershing II Guided Missile System.
    (dd) Guided Missile System, Intercept Aerial M41 (REDEYE) and 
Associated Equipment.
    (ee) U.S. Roland Missile System.
    (ff) Sergeant Missile System (less warhead) (as pertains to 
electronics and penetration aids only).
    (gg) Shillelagh Missile System.
    (hh) Stinger/Stinger-Post Guided Missile System (FIM-92A).
    (ii) Terminally Guided Warhead (TWG) for Multiple Launch Rocket 
System (MLRS).
    (jj) TOW Heavy Antitank Weapon System.
    (kk) Viper Light Antitank/Assault Weapon System.



Sec. 158.9  Categories of information that require review before declassification: Department of the Navy systems.

    The following categories of Navy information shall be reviewed 
systematically for declassification by designated DoD reviewers in 
accordance with this part.
    (a) Naval nuclear propulsion information.
    (b) Conventional surface ship information:
    (1) Vulnerabilities of protective systems, specifically:

[[Page 792]]

    (i) Passive protection information concerning ballistic torpedo and 
underbottom protective systems.
    (ii) Weapon protection requirement levels for conventional, nuclear, 
biological, or chemical weapons.
    (iii) General arrangements, drawings, and booklets of general plans 
(applicable to carriers only).
    (2) Ship-silencing information relative to:
    (i) Signatures (acoustic, seismic, infrared, magnetic (including 
alternating magnetic (AM)), pressure, and underwater electric potential 
(UEP)).
    (ii) Procedures and techniques for noise reduction pertaining to an 
individual ship's component.
    (iii) Vibration data relating to hull and machinery.
    (3) Operational characteristics related to performance as follows:
    (i) Endurance or total fuel capacity.
    (ii) Tactical information, such as times for ship turning, zero to 
maximum speed, and maximum to zero speed.
    (c) All information that is uniquely applicable to nuclear-powered 
surface ships or submarines.
    (d) Information concerning diesel submarines as follows:
    (1) Ship-silencing data or acoustic warfare systems relative to:
    (i) Overside, platform, and sonar noise signature.
    (ii) Radiated noise and echo response.
    (iii) All vibration data.
    (iv) Seismic, magnetic (including AM), pressure, and UEP signature 
data.
    (2) Details of operational assignments, that is, war plans, 
antisubmarine warfare (ASW), and surveillance tasks.
    (3) General arrangements, drawings, and plans of SS563 class 
submarine hulls.
    (e) Sound Surveillance System (SOSUS) data.
    (f) Information concerning mine warfare, mine sweeping, and mine 
countermeasures.
    (g) ECM or ECCM features and capabilities of any electronic 
equipment.
    (h) Torpedo information as follows:
    (1) Torpedo countermeasures devices: T-MK6 (FANFARE) and NAE 
beacons.
    (2) Tactical performance, tactical doctrine, and vulnerability to 
counter-measures.
    (i) Design performance and functional characteristics of guided 
missiles, guided projectiles, sonars, radars, acoustic equipments, and 
fire control systems.



Sec. 158.10  Categories of information that require review before declassification: Department of the Air Force systems.

    The Department of the Air Force has determined that the categories 
identified in Sec. 158.7 of this part shall apply to Air Force 
information.



Sec. 158.11  Declassification considerations.

    (a) Technological developments; widespread public knowledge of the 
subject matter; changes in military plans, operations, systems, or 
equipment; changes in the foreign relations or defense commitments of 
the United States; and similar events may bear upon the determination of 
whether information should be declassified. If the responsible DoD 
reviewer decides that, in view of such circumstances, the public 
disclosure of the information being reviewed no longer would result in 
damage to the national security, the information shall be declassified.
    (b) The following are examples of considerations that may be 
appropriate in deciding whether information in the categories listed in 
Secs. 158.7 through 158.10 may be declassified when it is reviewed:
    (1) The information no longer provides the United States a 
scientific, engineering, technical, operational, intelligence, 
strategic, or tactical advantage over other nations.
    (2) The operational military capability of the United States 
revealed by the information no longer constitutes a limitation on the 
effectiveness of the Armed Forces.
    (3) The information is pertinent to a system that no longer is used 
or relied on for the defense of the United States or its allies and does 
not disclose the capabilities or vulnerabilities of existing operational 
systems.

[[Page 793]]

    (4) The program, project, or system information no longer reveals a 
current weakness or vulnerability.
    (5) The information pertains to an intelligence objective or 
diplomatic initiative that has been abandoned or achieved and will no 
longer damage the foreign relations of the United States.
    (6) The information reveals the fact or identity of a U.S. 
intelligence source, method, or capability that no longer is employed 
and that relates to no current source, method, or capability that upon 
disclosure could cause damage to national security or place a person in 
immediate jeopardy.
    (7) The information concerns foreign relations matters whose 
disclosure can no longer be expected to cause or increase international 
tension to the detriment of the national security of the United States.
    (c) Declassification of information that reveals the identities of 
clandestine human agents shall be accomplished only in accordance with 
procedures established by the Director of Central Intelligence for that 
purpose.
    (d) The NSA/CSS is the sole authority for the review and 
declassification of classified cryptologic information. The procedures 
established by the NSA/CSS to facilitate the review and declassification 
of classified cryptologic information are:
    (1) COMSEC documents and materials. (i) If records or materials in 
this category are found in agency files that are not under COMSEC 
control, refer them to the senior COMSEC authority of the agency 
concerned or by appropriate channels to the following address: Director, 
National Security Agency, Attn: Director of Policy (Q4), Fort George G. 
Meade, Maryland 20755.
    (ii) If the COMSEC information has been incorporated into other 
documents by the receiving agency, referral to the NSA/CSS is necessary 
before declassification.
    (2) SIGINT information. (i) If the SIGINT information is contained 
in a document or record originated by a DoD cryptologic organization, 
such as the NSA/CSS, and is in the files of a noncryptologic agency, 
such material will not be declassified if retained in accordance with an 
approved records disposition schedule. If the material must be retained, 
it shall be referred to the NSA/CSS for systematic review for 
declassification.
    (ii) If the SIGINT information has been incorporated by the 
receiving agency into documents it produces, referral to the NSA/CSS is 
necessary before any declassification.



Sec. 158.12  Department of State areas of interest.

    (a) Statements of U.S. intent to defend, or not to defend, 
identifiable areas, or along identifiable lines, in any foreign country 
or region.
    (b) Statements of U.S. intent militarily to attack in stated 
contingencies identifiable areas in any foreign country or region.
    (c) Statements of U.S. policies or initiatives within collective 
security organizations (for example, North Atlantic Treaty Organization 
(NATO) and Organization of American States (OAS)).
    (d) Agreements with foreign countries for the use of, or access to, 
military facilities.
    (e) Contingency plans insofar as they involve other countries, the 
use of foreign bases, territory or airspace, or the use of chemical, 
biological, or nuclear weapons.
    (f) Defense surveys of foreign territories for purposes of basing or 
use in contingencies.
    (g) Reports documenting conversations with foreign officials, that 
is, foreign government information.



Sec. 158.13  Central Intelligence Agency areas of interest.

    (a) Cryptologic, cryptographic, or SIGINT. (Information in this 
category shall continue to be forwarded to the NSA/CSS in accordance 
with Sec. 158.11(d). The NSA/CSS shall arrange for necessary 
coordination.)
    (b) Counterintelligence.
    (c) Special access programs
    (d) Information that identifies clandestine organizations, agents, 
sources, or methods.
    (e) Information on personnel under official or nonofficial cover or 
revelation of a cover arrangement.
    (f) Covertly obtained intelligence reports and the derivative 
information

[[Page 794]]

that would divulge intelligence sources or methods.
    (g) Methods or procedures used to acquire, produce, or support 
intelligence activities.
    (h) CIA structure, size, installations, security, objectives, and 
budget.
    (i) Information that would divulge intelligence interests, value, or 
extent of knowledge on a subject.
    (j) Training provided to or by the CIA that would indicate its 
capability or identify personnel.
    (k) Personnel recruiting, hiring, training, assignment, and 
evaluation policies.
    (l) Information that could lead to foreign political, economic, or 
military action against the United States or its allies.
    (m) Events leading to international tension that would affect U.S. 
foreign policy.
    (n) Diplomatic or economic activities affecting national security or 
international security negotiations.
    (o) Information affecting U.S. plans to meet diplomatic 
contingencies affecting national security.
    (p) Nonattributable activities conducted abroad in support of U.S. 
foreign policy.
    (q) U.S. surreptitious collection in a foreign nation that would 
affect relations with the country.
    (r) Covert relationships with international organizations or foreign 
governments.
    (s) Information related to political or economic instabilities in a 
foreign country threatening American lives and installations therein.
    (t) Information divulging U.S. intelligence collection and 
assessment capabilities.
    (u) U.S. and allies' defense plans and capabilities that enable a 
foreign entity to develop countermeasures.
    (v) Information disclosing U.S. systems and weapons capabilities or 
deployment.
    (w) Information on research, development, and engineering that 
enables the United States to maintain an advantage of value to national 
security.
    (x) Information on technical systems for collection and production 
of intelligence, and their use.
    (y) U.S. nuclear programs and facilities.
    (z) Foreign nuclear programs, facilities, and intentions.
    (aa) Contractual relationships that reveal the specific interest and 
expertise of the CIA.
    (bb) Information that could result in action placing an individual 
in jeopardy.
    (cc) Information on secret writing when it relates to specific 
chemicals, reagents, developers, and microdots.
    (dd) Reports of the Foreign Broadcast Information Service (FBIS) (-- 
Branch, --Division) between July 31, 1946, and December 31, 1950, marked 
CONFIDENTIAL or above.
    (ee) Reports of the Foreign Documents Division between 1946 and 1950 
marked RESTRICTED or above.
    (ff) Q information reports.
    (gg) FDD translations.
    (hh) U reports.



PART 159--DOD INFORMATION SECURITY PROGRAM--Table of Contents




Sec.
159.1  Purpose.
159.2  Applicability and scope.
159.3  Policy.
159.4  Procedures.
159.5  Responsibilities.

    Authority: E.O. 12356 and 5 U.S.C. 301.

    Source: 53 FR 44877, Nov. 7, 1988, unless otherwise noted.



Sec. 159.1  Purpose.

    (a) This part updates policies and procedures of the DoD information 
Security Program, implements Executive Order 12356 and 32 CFR part 2001, 
delegates authority, and assigns responsibilities.
    (b) This part authorizes the development, publication, and 
maintenance of the following documents, consistent with DoD 5025.1-M.
    (1) DoD 5200.1-R, ``Information Security Program Regulation'';
    (2) DoD 5200.1-H, ``Department of Defense Handbook for Writing 
Security Classification Guidance'';
    (3) DoD 5200.1-I, ``Index of Security Classification Guides'';
    (4) DoD 5200.1-PH, ``A Guide to Marking Classified Documents''; and

[[Page 795]]

    (5) Other DoD 5200.1-PH series issuances necessary to ensure or 
facilitate compliance with and implementation of DoD 5200.1-R and E.O. 
12356 and 32 CFR part 2001.



Sec. 159.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense, the 
Military Departments, the Organization of the Joint Chiefs of Staff, the 
Unified and Specified Commands, and the Defense Agencies (hereafter 
referred to as ``DoD Components'').
    (b) This part covers all information that is owned, produced by or 
for, or is under the control of the Department of Defense that shall be 
protected from unauthorized disclosure in the interest of national 
security under Executive Order 12356 and ISOO Directive No. 1 and all 
such information received by the Department of Defense from other 
sources, including that received from or produced pursuant to or as a 
result of a joint arrangement with a foreign government or international 
organization.



Sec. 159.3  Policy.

    It is the policy of the Department of Defense to assure that 
information that warrants protection against unauthorized disclosure is 
properly classified and safeguarded as well as to facilitate the flow of 
unclassified information about DoD operations to the public.



Sec. 159.4  Procedures.

    To carry out this policy, there is established a DoD Information 
Security Program that shall be administered to ensure that:
    (a) Information requiring protection in the interest of national 
security is properly classified and safeguarded.
    (b) Overclassification and unnecessary classification are avoided.
    (c) Information is classified as long as required by national 
security considerations.
    (d) Unnecessary expense to the Department of Defense, industry, and 
the U.S. government, resulting from protection of information no longer 
requiring classification, is eliminated.
    (e) Declassified information is made available to the public under 
32 CFR part 285.
    (f) Classified inventories are reduced to the minimum necessary to 
meet operational requirements, thereby affording better protection to 
that which remains.
    (g) DoD military and civilian personnel, who require access to 
classified information in the conduct of official business, are familiar 
with the requirements of DoD 5200.1-R and E.O. 12356 and 32 CFR part 
2001, and that they comply with those requirements.



Sec. 159.5  Responsibilities.

    (a) The Deputy Under Secretary of Defense (Policy) shall:
    (1) Direct and administer the DoD Information Security Program, 
establish policy, standards, criteria, and procedures to comply with 
E.O. 12356, except its section 3.4.
    (2) Conduct an active oversight program to ensure effective 
implementation of DoD 5200.1-R, Executive Order 12356, and 32 CFR part 
2001, to include security education and training.
    (3) Consider and take action on complaints and suggestions from 
persons within or outside the government regarding the DoD information 
Security Program.
    (b) The Assistant Secretary of Defense (Public Affairs) shall direct 
and administer a DoD Mandatory Declassification Review Program under 
section 3.4., E.O. 12356, and establish policies and procedures for 
processing mandatory declassification review requests, including 
appeals, under section 3.4(d) of E.O. 12356 and section 
2001.32(a)(2)(iii) of Information Security Oversight Office (ISOO) 
Directive No. 1 \1\ that make maximum use of DoD Component resources and 
systems established to implement 32 CFR part 285.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the Director, 
Information Security Oversight, General Service Administration, 
Washington, DC 20405.
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    (c) The Head of each DoD Component shall:
    (1) Designate a senior official who shall be responsible for the 
direction and administration of the Component's

[[Page 796]]

Information Security Program, to include active oversight, and security 
education and training programs to ensure implementation of DoD 5200.1-R 
within the Component.
    (2) Ensure that funding and resources are adequate to carry out such 
oversight, and security education and training programs.
    (3) Consider and take action on complaints and suggestions from 
persons within or outside the government regarding the Component's 
Information Security Program.
    (4) Establish procedures to limit access to classified information 
to those who need to know.
    (5) Develop plans for the protection, removal, or destruction of 
classified material in case of fire, natural disaster, civil 
disturbance, terrorist activities, or enemy action. These plans shall 
include the treatment of classified information located in foreign 
countries.
    (d) Pursuant to E.O. 12356, the Director, National Security Agency/
Chief, Central Security Service, as the designee of the Secretary of 
Defense, is authorized to impose special requirements with respect to 
the marking, reproduction, distribution, accounting, and protection of 
and access to classified cryptologic information. The Director, National 
Security Agency/Chief, Central Security Service, will develop special 
procedures for the declassification review of cryptologic information. 
This authority may not be redelegated.



PART 159a--INFORMATION SECURITY PROGRAM REGULATION--Table of Contents




                            Subpart A--Policy

Sec.
159a.1  Purpose.
159a.2  Applicability.
159a.3  Nongovernment operations.
159a.4  Combat operations.
159a.5  Atomic energy material.
159a.6  Sensitive compartmented and communications security information.
159a.7  Automatic Data Processing systems.

                      Subpart B--General Provisions

159a.9  Definitions.
159a.10  Policies.
159a.11  Security classification designations.
159a.12  Authority to classify, downgrade, and declassify.

                        Subpart C--Classification

159a.14  Classification responsibilities.
159a.15  Classification principles, criteria, and considerations.
159a.16  Duration of original classification.
159a.17  Classification guides.
159a.18  Resolution of conflicts.
159a.19  Obtaining classification evaluations.
159a.20  Information developed by private sources.
159a.21  Regrading.
159a.22  Industrial operations.

               Subpart D--Declassification and Downgrading

159a.24  General provisions.
159a.25  Systematic review.
159a.26  Mandatory declassification review.
159a.27  Declassification of transferred documents or material.
159a.28  Downgrading.
159a.29  Miscellaneous.

                           Subpart E--Marking

159a.31  General provisions.
159a.32  Specific markings on documents.
159a.33  Markings on special categories of material.
159a.34  Classification authority, duration, and change in 
          classification markings.
159a.35  Additional warning notices.
159a.36  Remarking old material.

                   Subpart F--Safekeeping and Storage

159a.37  Storage and storage equipment.
159a.38  Custodial precautions.
159a.39  Activity entry and exit inspection program.

             Subpart G--Compromise of Classified Information

159a.41  Policy.
159a.42  Cryptographic and sensitive compartmented information.
159a.43  Responsibility of discoverer.
159a.44  Preliminary inquiry.
159a.45  Investigation.
159a.46  Responsibility of authority ordering investigation.
159a.47  Responsibility of originator.
159a.48  System of control of damage assessments.
159a.49  Compromises involving more than one agency.
159a.50  Espionage and deliberate compromise.
159a.51  Unauthorized absentees.

          Subpart H--Access, Dissemination, and Accountability

159a.53  Access.
159a.54  Dissemination.

[[Page 797]]

159a.55  Accountability and control.

                         Subpart I--Transmission

159a.57  Methods of transmission or transportation.
159a.58  Preparation of material for transmission, shipment, or 
          conveyance.
159a.59  Restrictions, procedures, and authorization concerning escort 
          or handcarrying of classified information.

                   Subpart J--Disposal and Destruction

159a.61  Policy.
159a.62  Methods of destruction.
159a.63  Destruction procedures.
159a.64  Records of destruction.
159a.65  Classified waste.
159a.66  Classified document retention.

                      Subpart K--Security Education

159a.68  Responsibility and objectives.
159a.69  Scope and principles.
159a.70  Initial briefings.
159a.71  Refresher briefings.
159a.72  Foreign travel briefings.
159a.73  Termination briefings.

                Subpart L--Foreign Government Information

159a.75  Classification.
159a.76  Declassification.
159a.77  Marking.
159a.78  Protective measures.

                   Subpart M--Special Access Programs

159a.80  Policy.
159a.81  Establishment of special access programs.
159a.82  Review of special access programs.
159a.83  Control and central office administration.
159a.84  Codewords and nicknames.
159a.85  Reporting of special access programs.
159a.86  Accounting for special access programs.
159a.87  Limitations on access.
159a.88  ``Carve-Out'' contracts.
159a.89  Oversight reviews.

                      Subpart N--Program Management

159a.91  Executive branch oversight and policy direction.
159a.92  Department of Defense.
159a.93  DoD components.
159a.94  Information requirements.
159a.95  Defense Information Security Committee.

                   Subpart O--Administration Sanctions

159a.97  Individual responsibility.
159a.98  Violation subject to sanctions.
159a.99  Corrective action.
159a.100  Administrative discrepancies.
159a.101  Reporting violations.

Appendix A to Part 159a--Equivalent Foreign and International Pact 
          Organization Security Classifications
Appendix B to Part 159a--General Accounting Office Officials Authorized 
          to Certify Security Clearances
Appendix C to Part 159a--Instructions Governing Use of Code Words, 
          Nicknames, and Exercise Terms
Appendix D to Part 159a--Federal Aviation Administration Air 
          Transportation, Security Field Offices
Appendix E to Part 159a--Transportation Plan

    Authority: E.O. 12356, 5 U.S.C. 301.

    Source: 54 FR 26959, June 27, 1989, unless otherwise noted.



                            Subpart A--Policy



Sec. 159a.1  Purpose.

    Information of the Department of Defense relating to national 
security shall be protected against unauthorized disclosure as long as 
required by national security considerations. This part establishes a 
system for classification, downgrading and declassification of 
information; sets forth policies and procedures to safeguard such 
information; and provides for oversight and administrative sanctions for 
violations.



Sec. 159a.2  Applicability.

    This part governs the DoD Information Security Program and takes 
precedence over all DoD Component regulations that implement that 
Program. Under 32 CFR part 159, E.O. 12356, and Information Security 
Oversight Office (ISOO) Directive No. 1, it establishes, for the 
Department of Defense, uniform policies, standards, criteria, and 
procedures for the security classification, downgrading, 
declassification, and safeguarding of information that is owned by, 
produced for or by, or under the control of the Department of Defense or 
its Components.



Sec. 159a.3  Nongovernment operations.

    Except as otherwise provided herein, the provisions of this part 
that are relevant to operations of nongovernment personnel entrusted 
with classified information shall be made applicable

[[Page 798]]

thereto by contracts or other legally binding instruments. (See DOD 
Directive 5220.22 \1\, DoD 5220.22-R \2\, and DoD 5220.22-M \3\.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the Naval Publications 
and Forms Center, Attn: Code 106, 5801 Tabor Avenue, Philadelphia, PA 
19120.
    \2\ Copies may be obtained at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
    \3\ Copies may be obtained, at cost, from the Government Printing 
Office.
---------------------------------------------------------------------------



Sec. 159a.4  Combat operations.

    The provisions of this part relating to accountability, 
dissemination, transmission, or safeguarding of classified information 
may be modified by military commanders but only to the extent necessary 
to meet local conditions in connection with combat or combat-related 
operations. Classified information should be introduced into forward 
combat areas or zones or areas of potential hostile activity only when 
essential to accomplish the military mission.



Sec. 159a.5  Atomic energy material.

    Nothing in this part supersedes any requirement related to 
``Restricted Data'' in the Atomic Energy Act of August 30, 1954, as 
amended, or the regulations of the Department of Energy under that Act. 
``Restricted Data'' and material designated as ``Formerly Restricted 
Data,'' shall be handled, protected, classified, downgraded, and 
declassified to conform with Pub. L. 83-703 and the regulations issued 
pursuant thereto.



Sec. 159a.6  Sensitive compartmented and communications security information.

    (a) Sensitive Compartmented Information (SCI) and Communications 
Security (COMSEC) Information shall be handled and controlled in 
accordance with applicable national directives and DOD Directives and 
Instructions. Other classified information, while in established SCI or 
COMSEC areas, may be handled in the same manner as SCI or COMSEC 
information. Classification principles and procedures, markings, 
downgrading, and declassification actions prescribed in this part apply 
to SCI and COMSEC information.
    (b) Pursuant to 32 CFR part 159, the Director, National Security 
Agency/Chief, Central Security Service may prescribe special rules and 
procedures for the handling, reporting of loss, storage, and access to 
classified communications security devices, equipments, and materials in 
mobile, hand-held or transportable systems, or that are used in 
conjunction with commercial telephone systems, or in similar 
circumstances where operational demands preclude the application of 
standard safeguards. These special rules may include procedures for 
safeguarding such devices and materials, and penalties for the negligent 
loss of government property.



Sec. 159a.7  Automatic Data Processing systems.

    This part applies to protection of classified information processed, 
stored or used in, or communicated, displayed or disseminated by an 
automatic data processing (ADP) system. Additional security policy, 
responsibilities, and requirements applicable specifically to ADP 
systems are contained in DoD Directive 5200.28 \4\ and DoD 5200.28-M.
---------------------------------------------------------------------------

    \4\ See footnote 1 to Sec. 159a.3.
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                      Subpart B--General Provisions



Sec. 159a.9  Definitions.

    (a) Access. The ability and opportunity to obtain knowledge of 
classified information.
    (b) Applicable Associated Markings. The markings, other than 
classfication markings, and warning notices listed or refered to in 
Sec. 159a.31(d).
    (c) Carve-Out. A classified contract issued in connection with an 
approved Special Access Program in which the Defense Investigative 
Service has been relieved of inspection, responsibility in whole or in 
part under the Defense Industrial Security Program.
    (d) Classification Authority. The authority vested in an official of 
the Department of Defense to make an initial determination that 
information requires protection against unauthorized disclosure in the 
interest of national security.

[[Page 799]]

    (e) Classification Guide. A document issued by an authorized 
original classifier that prescribes the level of classification and 
appropriate declassification instructions for specified information to 
be classified derivatively. For purposes of this part, this term does 
not include DD Form 254, ``Contract Security Classification 
Specification.''
    (f) Classified Information. Information or material that is:
    (1) Owned by, produced for or by, or under the control of the U.S. 
Government; and
    (2) Determined under E.O. 12356 or prior orders and this part to 
require protection against unauthorized disclosure; and
    (3) So designated.
    (g) Classifier. An individual who makes a classification 
determination and applies a security classification to information or 
material. A classifier may be an original classification authority or a 
person who derivatively assigns a security classification based on a 
property classified source or a classification guide.
    (h) Communications Security (COMSEC). The protection resulting from 
all measures designed to deny unauthorized persons information of value 
which might be derived from the possession and study of 
telecommunications and to ensure the authenticity of such 
communications. COMSEC includes cryptosecurity, emission security, 
transmission security, and physical security of COSMEC material and 
information.
    (i) Compromise. The disclosure of classified information to persons 
not authorized access thereto.
    (j) Confidential Source. Any individual or organization that has 
provided, or that may reasonably be expected to provide, information to 
the United States on matters pertaining to the national security with 
the expectation, expressed or implied, that the information or 
relationship, or both, be held in confidence.
    (k) Continental United States (CONUS). United States territory, 
including adjacent territorial waters, located within the North American 
continent between Canada and Mexico.
    (l) Controlled Cryptographic Item (CCI). A secure telecommunications 
or information handling equipment ancillary device, or associated 
cryptographic component, which is unclassified but controlled.

    Note: Equipments and components so designated bear the designator 
``Controlled Cryptographic Item'' or ``CCI.'')

    (m) Critical Nuclear Weapon Design Information. That Top Secret 
Restricted Data or Secret Restricted Data revealing the theory of 
operation or design of the components of a thermo-nuclear or implosion-
type fission bomb, warhead, demolition munition or test device. 
Specifically excluded is information concerning arming, fuzing, and 
firing systems; limited life components; and total contained quantities 
of fissionable, fusionable, and high explosive materials by type. Among 
these excluded items are the components which DoD personnel set, 
maintain, operate, test, or replace.
    (n) Custodian. An individual who has possession of or is otherwise 
charged with the responsibility for safeguarding or accounting for 
classified information.
    (o) Declassification. The determination that classified information 
no longer requires, in the interest of national security, any degree of 
protection against unauthorized disclosure, together with a removal or 
cancellation of the classification designation.
    (p) Declassification Event. An event that eliminates the need for 
continued classification of information.
    (q) Derivative Classification. A determination that information is 
in substance the same as information currently classified, and the 
application of the classification markings.
    (r) Document. Any recorded information regardless of its physical 
form or characteristics, including, without limitation, written or 
printed matter, data processing cards and tapes, maps, charts, 
paintings, drawings, engravings, sketches, working notes and papers, or 
reproductions by any means or process, and sound, voice, magnetic or 
electronic recordings in any form.
    (s) DoD Component. The Office of the Secretary of Defense (OSD), the 
Military Departments, the Organization of the Joint Chiefs of Staff 
(OJCS), the

[[Page 800]]

Unified and Specified Commands, and the Defense Agencies.
    (t) Downgrade. A determination that classified information requires, 
in the interest of national security, a lower degree of protection 
against unauthorized disclosure than currently provided, together with a 
changing of the classification designation to reflect such lower degree 
of protection.
    (u) Foreign Government Information. Information that is:
    (1) Provided to the United States by a foreign government or 
governments, an international organization of governments, or any 
element thereof with the expectation, expressed or implied, that the 
information, the source of the information, or both, are to be held in 
confidence; or
    (2) Produced by the United States pursuant to or as a result of a 
joint arrangement with a foreign government or governments or an 
international organization of governments, or any element thereof, 
requiring that the information, the arrangement, or both, are to be held 
in confidence.
    (v) Formerly Restricted Data. Information removed from the 
Restricted Data category upon a joint determination by the Department of 
Energy (or antecedent agencies) and the Department of Defense that such 
information relates primarily to the military utilization of atomic 
weapons and that such information can be safeguarded adequately as 
classified defense information. For purposes of foreign dissemination, 
however, such information is treated in the same manner as Restricted 
Data.
    (w) Information. Knowledge that can be communicated by any means.
    (x) Information Security. The result of any system of policies and 
procedures for identifying, controlling, and protecting from 
unauthorized disclosure, information whose protection is authorized by 
executive order or statute.
    (y) Intelligence Activity. An activity that an agency within the 
Intelligence Community is authorized to conduct under E.O. 12333.
    (z) Limited Dissemination. Restrictive controls for classified 
information established by an original classification authority to 
emphasize need-to-know protective measures available within the regular 
security system.
    (aa) Material. Any product or substance on, or in which, information 
is embodied.
    (bb) National Security. The national defense and foreign relations 
of the United States.
    (cc) Need-to-know. A determination made by a possessor of classified 
information that a prospective recipient, in the interest of national 
security, has a requirement for access to, or knowledge, or possession 
of the classified information in order to accomplish lawful and 
authorized Government purposes.
    (dd) Original Classification. An initial determination that 
information requires, in the interest of national security, protection 
against unauthorized disclosure, together with a classification 
designation signifying the level of protection required.
    (ee) Regrade. A determination that classified information requires a 
different degree of protection against unauthorized disclosure than 
currently provided, together with a change of classification designation 
that reflects such different degree of protection.
    (ff) Restricted Data. All data concerning:
    (1) Design, manufacture or utilization of atomic weapons;
    (2) The production of special nuclear material; or
    (3) The use of special nuclear material in the production of energy, 
but shall not include data declassified or removed from the Restricted 
Data category under section 142 of Pub. L. 83-703.
    (gg) Security Clearance. A determination that a person is eligible 
under the standards of DoD 5200.2-R for access to classified 
information.
    (hh) Senior Information Security Authority. A senior official 
designated in writing by the head of each DoD Component to be 
responsible for implementation of the Information Security Program 
within the Component.
    (ii) Sensitive Compartmented Information. Information and material 
that requires special controls for restricted handling within 
compartmented intelligence systems and for which compartmentation is 
established.

[[Page 801]]

    (jj) Special Access Program. Any program approved in accordance with 
subpart M of this part which imposes need-to-know or access controls 
beyond those normally required for access to Confidential, Secret, or 
Top Secret information.
    (kk) Special Activity. An activity, or functions in support of such 
activity, conducted in support of national foreign policy objectives 
abroad that is planned and executed so that the role of the U.S. 
Government is neither apparent nor acknowledged publicly; but that is 
not intended to influence U.S. political processes, public opinion, 
policies, or media, and does not include diplomatic activities or the 
collection and production of intelligence or related support functions.
    (ll) Unauthorized Disclosure. A communication or physical transfer 
of classified information to an unauthorized recipient.
    (mm) United States and Its Territories, Possessions, Administrative, 
and Commonwealth Areas. The 50 States; the District of Columbia; the 
Commonwealth of Puerto Rico; the Territories of Guam, American Samoa, 
and the Virgin Islands; the Trust Territory of the Pacific Islands; and 
the Possessions, Midway and Wake Islands.
    (nn) Upgrade. A determination that certain classified information 
requires, in the interest of national security, a higher degree of 
protection against unauthorized disclosure than currently provided, 
together with a changing of the classification designation to reflect 
such higher degree.



Sec. 159a.10  Policies.

    (a) Classification--(1) Basic Policy. Except as provided in the 
Atomic Energy Act of 1954, as amended, E.O. 12356, as implemented by the 
ISOO Directive No. 1, and this part, provides the only basis for 
classifying information. It is the policy of the Department of Defense 
to make available to the public as much information concerning its 
activities as possible consistent with the need to protect the national 
security. Accordingly, security classification shall be applied only to 
protect the national security.
    (2) Resolution of Doubts. Unnecessary classification and higher than 
necessary classification should be avoided. If there is reasonable doubt 
about the need to classify information, it shall be safeguarded as if it 
were classsified ``Confidential'' pending a determination by an original 
classification authority, who shall make this determination within 30 
days. If there is reasonable doubt about the appropriate level of 
classification, it shall be safeguarded at the higher level of 
classification pending a determination by an original classification 
authority, who shall make this determination within 30 days. Upon a 
classification determination, markings shall be applied in accordance 
with subpart E of this part.
    (3) Duration. Information shall be classified as long as required by 
national security considerations. Each decision to classify requires a 
simultaneous determination of the duration such classification must 
remain in force or that the duration of classification cannot be 
determined.
    (b) Declassification. Decisions concerning declassification shall be 
based on the loss of the information's sensitivity with the passage of 
time or upon the occurrence of a declassification event.
    (c) Safeguarding. Information classified under this part shall be 
afforded the level of protection against unauthorized disclosure 
commensurate with the level of classification assigned under the varying 
conditions that may arise in connection with its use, dissemination, 
storage, movement or transmission, and destruction.



Sec. 159a.11  Security classification designations.

    (a) General. Information or material that requires protection 
against unauthorized disclosure in the interest of national security 
shall be classified in one of three designations, namely: ``Top 
Secret,'' ``Secret,'' or ``Confidential.'' The markings ``For Official 
Use Only,'' and ``Limited Official Use'' shall not be used to identify 
classified information. Moreover, no other term such as ``Sensitive,'' 
``Conference,'' or ``Agency'' shall be used in conjunction with the 
authorized classification designations to identify classified 
information.

[[Page 802]]

    (b) Top Secret. ``Top Secret'' shall be applied only to information 
or material the unauthorized disclosure of which reasonably could be 
expected to cause exceptionally grave damage to the national security. 
Examples of exceptionally grave damage include armed hostilities against 
the United States or its allies; disruption of foreign relations vitally 
affecting the national security; the compromise of vital national 
defense plans or complex cryptologic and communications intelligence 
systems; the revelation of sensitive intelligence operations; and the 
disclosure of scientific or technological developments vital to national 
security.
    (c) Secret. ``Secret'' shall be applied only to information or 
material the unauthorized disclosure of which reasonably could be 
expected to cause serious damage to the national security. Examples of 
serious damage include disruption of foreign relations significantly 
affecting the national security; significant impairment of a program or 
policy directly related to the national security; revelation of 
significant military plans or intelligence operations; compromise of 
significant military plans or intelligence operations; and compromise of 
significant scientific or technological developments relating to 
national security.
    (d) Confidential. ``Confidential'' shall be applied only to 
information or material the unauthorized disclosure of which reasonably 
could be expected to cause damage to the national security. Examples of 
damage include the compromise of information that indicates strength of 
ground, air, and naval forces in the United States and overseas areas; 
disclosure of technical information used for training, maintenance, and 
inspection of classified munitions of war; revelation of performance 
characteristics, test data, design, and production data on munitions of 
war.



Sec. 159a.12  Authority to classify, downgrade, and declassify.

    (a) Original Classification Authority--(1) Control. Authority for 
original classification of information as Top Secret, Secret, or 
Confidential may be exercised only by the Secretary of Defense, the 
Secretaries of the Military Departments, and by officials to whom such 
authority is specifically delegated in accordance with and subject to 
the restrictions of this section of the part. In the absence of an 
original classification authority, the person designated to act in his 
or her absence may exercise the classifier's authority.
    (2) Delegation of Classification Authority. Original classification 
authority shall not be delegated to persons who only reproduce, extract, 
or summarize classified information, or who only apply classification 
markings derived from source material or as directed by a classification 
guide. Delegations of original classification authority shall be limited 
to the minimum number required for efficient administration and to those 
officials whose duties involve the origination and evaluation of 
information warranting classification at the level stated in the 
delegation.
    (i) Top Secret. Only the Secretary of Defense, the Secretaries of 
the Military Departments, and the senior official designated by each 
under Sec. 5.3(a) of E.O. 12356, provided that official has original Top 
Secret classification authority, may delegate original Top Secret 
classification authority. Such delegation may only be made to officials 
who are determined to have a demonstrable and continuing need to 
exercise such authority.
    (ii) Secret and Confidential. Only the Secretary of Defense, the 
Secretaries of the Military Departments, the senior official designated 
by each under Sec. 5.3(a) of E.O. 12356, and officials with original Top 
Secret classification authority, may delegate original Secret and 
Confidential classification authority to officials whom they determine 
respectively to have a demonstrable and continuing need to exercise such 
authority.
    (iii) Each delegation of original classification authority shall be 
in writing and shall specify the title of the position held by the 
recipient.
    (3) Requests for Classification Authority. (i) A request for the 
delegation of original classification authority shall be made only when 
there is a demonstrable and continuing need to exercise such authority 
and the following conditions exist:

[[Page 803]]

    (A) The normal course of operations or missions of the organization 
results in the origination of information warranting classification;
    (B) There is a substantial degree of local autonomy in operations or 
missions as distinguished from dependence upon a higher level of command 
or supervision for relatively detailed guidance;
    (C) There is adequate knowledge by the originating level to make 
sound classification determinations as distinguished from having to seek 
such knowledge from a higher level of command or supervision; and
    (D) There is a valid reason why already designated classification 
authorities in the originator's chain of command or supervision have not 
issued or cannot issue classification guidance to meet the originator's 
normal needs.
    (ii) Each request for a delegation of original classification 
authority shall:
    (A) Identify the title of the position held by the nominee and the 
nominee's organization;
    (B) Contain a description of the circumstances, consistent with 
paragraph (a)(3)(i) of this section, that justify the delegation of such 
authority; and
    (C) Be submitted through established channels to the Secretary of 
Defense, the Secretary of the Military Department concerned, the senior 
official designated by each under Sec. 5.3(a) of E.O. 12356, or the 
appropriate Top Secret classification authority.
    (4) Training Requirements for Original Classification Authorities. 
Heads of DoD Component shall establish procedures to ensure that all 
original classification authorities in their Component, to include 
themselves, are indoctrinated in the fundamentals of security 
classification, limitations on their authority to classify information, 
and their responsibilities as such. This indoctrination shall be a 
prerequisite to the exercise of such authority and shall be a matter of 
record that is subject to audit. Heads of DoD Components shall ensure 
this indoctrination is given to all present original classification 
authorities within 12 months of the effective date of this part.
    (b) Derivative Classification Responsibility. Derivative application 
of classification markings is a responsibility of those who incorporate, 
paraphrase, restate, or generate in new form, information that is 
already classified, or those who apply markings in accordance with 
guidance from an original classification authority. Persons who apply 
derivative classifications should take care to determine whether their 
paraphrasing, restating, or summarizing of classified information has 
removed all or part of the basis for classification. Persons who apply 
such derivative classification markings shall:
    (1) Respect original classification decisions;
    (2) Verify the information's current level of classification as far 
as practicable before applying the markings; and
    (3) Carry forward to any newly created documents the assigned dates 
or events for declassification and any additional authorized markings.
    (c) Record and Report Requirements. (1) Records of designations of 
original classification authority shall be maintained as follows:
    (i) Top Secret Authorities. A current listing by title and 
organization of officials designated to exercise original Top Secret 
classification authority shall be maintained by:
    (A) The Office of the Deputy Under Secretary of Defense (Policy) 
(ODUSD(P)) for the Office of the Secretary of Defense; the Organization 
of the Joint Chiefs of Staff; the headquarters of each Unified Command 
and the headquarters of subordinate Joint Commands; and the Defense 
Agencies.
    (B) The Offices of the Secretaries of the Military Departments for 
the officials of their respective departments, including Specified 
Commands but excluding officials from their respective departments wo 
are serving in headquarters elements of Unified Commands and 
headquarters of Joint Commands subordinate thereto.
    (ii) Secret and Confidential Authorities. A current listing by title 
and organization of officials designated to exercise original Secret and 
Confidential classification authority shall be maintained by:
    (A) The ODUSD(P) for the Office of the Secretary of Defense.

[[Page 804]]

    (B) The offices of the Secretaries of the Military Departments for 
the officials of their respective departments, including Specified 
Commands but excluding officials from their respective departments who 
are serving in headquarters elements of Unified Commands and 
headquarters elements of Joint Commands subordinate thereto.
    (C) The Director, Joint Staff, for the OJCS.
    (D) The Commanders-in-Chief of the Unified Commands, for their 
respective headquarters and the headquarters of subordinate Joint 
Commands.
    (E) The Directors of the Defense Agencies, for their respective 
agencies.
    (iii) If the listing of titles of positions and organizations 
prescribed in paragraphs (c)(1) (i) and (ii) of this section discloses 
intelligence or other information that either qualifies for security 
classification protection or otherwise qualifies to be withheld from 
public release under statute, some other means may be recommended by the 
DoD Component by which original classification authorities can be 
readily identified. Such recommendations shall be submitted to ODUSD(P) 
for approval.
    (iv) The listings prescribed in paragraphs (c)(1) (i) and (ii) of 
this section shall be reviewed at least annually by the senior official 
designated in or pursuant to Sec. 159a.92(a)(1), Sec. 159a.93 (a) or (b) 
or designee to ensure that officials so listed have demonstrated a 
continuing need to exercise original classification authority.
    (2) The DoD Components that maintain listings of designated original 
classification authorities shall, upon request, submit copies of such 
listings to ODUSD(P).
    (d) Declassification and Downgrading Authority. (1) Authority to 
declassify and downgrade information classified under provisions of this 
part shall be exercised as follows:
    (i) By the Secretary of Defense and the Secretaries of the Military 
Departments, with respect to all information over which their respective 
Departments exercise final classification jurisdiction;
    (ii) By the official who authorized the original classification, if 
that official is still serving in the same position, by a successor, or 
by a supervisory official of either; and
    (iii) By other officials designated for the purpose in accordance 
with paragraph (d)(2) of this section.
    (2) The Secretary of Defense, the Secretaries of the Military 
Departments, the Chairman of the Joint Chiefs of Staff, the Directors of 
the Defense Agencies, or their senior officials designated under 
Sec. 159a.93 (b) or (c) may designate additional officials at the lowest 
practicable echelons of command and supervision to exercise 
declassification and downgrading authority over classified information 
in their functional areas of interest. Records of officials so 
designated shall be maintained in the same manner as prescribed in 
Sec. 159a.12(c)(1)(i) for records of designations of original 
classification authority.



                        Subpart C--Classification



Sec. 159a.14  Classification responsibilities.

    (a) Accountability of Classifiers. (1) Classifiers are accountable 
for the propriety of the classifications they assign, whether by 
exercise of original classification authority or by derivative 
classification.
    (2) An official who classifies a document or other material and is 
identified thereon as the classifier is and continues to be an 
accountable classifier even though the document or material is approved 
or signed at a higher level in the same organization.
    (b) Classification Approval. (1) When an official signs or approves 
a document or other material already marked to reflect a particular 
level of classification, he or she shall review the information 
contained therein to determine if the classification markings are 
appropriate. If, in his or her judgment, the classification markings are 
not supportable, he or she shall, at that time, cause such markings to 
be removed or changed as appropriate to reflect accurately the 
classification of the information involved.
    (2) A higher level official through or to whom a document or other 
material

[[Page 805]]

passes for signature or approval becomes jointly responsible with the 
accountable classifier for the classification assigned. Such official 
has discretion to decide whether a subordinate who has classification 
authority shall be identified as the accountable classifier when he or 
she has exercised that authority.
    (c) Classification Planning. (1) Advance classification planning is 
an essential part of the development of any plan, operation, program, 
research and development project, or procurement action that involves 
classified information. Classification must be considered from the 
outset to assure adequate protection for the information and for the 
activity itself, and to eliminate impediments to the execution or 
implementation of the plan, operations order, program, project or 
procurement action.
    (2) The official charged with developing any plan, program or 
project in which classification is a factor, shall include under an 
identifiable title or heading, classification guidance covering the 
information involved. The guidance shall conform to the requirements 
contained in Sec. 159a.17.
    (d) Challenges to Classification. If holders of classified 
information have substantial reason to believe that the information is 
classified improperly or unnecessarily, they shall communicate that 
belief to their security manager or the classifier of the information to 
bring about any necessary correction.
    (1) Each DoD Component shall establish procedures whereby holders of 
classified information may challenge the decision of the classifier.
    (2) Challenges to classification made under this subsection shall 
include sufficient description of the information being challenged to 
permit identification of the information and its classifier with 
reasonable effort. Challenges to classification shall also include the 
reason or reasons why the challenger believes that the information is 
classified improperly or unnecessarily.
    (3) Challenges received under this subsection shall be acted upon 
within 30 days of receipt. The challenger shall be notified of any 
changes made as a result of the challenge or the reasons why no change 
is made.
    (4) Pending final determination of a challenge to classification, 
the information or document in question shall be safeguarded as required 
for the level of classification initially assigned.
    (5) The fact that an employee or military member of the Department 
of Defense has issued a challenge to classification shall not in any way 
result in or serve as a basis for adverse personnel action.
    (6) The provisions of this paragraph do not apply to or affect 
declassification review actions undertaken under the mandatory review 
requirements of Sec. 159a.26 of this part or under the provisions of 32 
CFR part 285.



Sec. 159a.15  Classification principles, criteria, and considerations.

    (a) Reasoned Judgment. Reasoned judgment shall be exercised in 
making classification decisions. A positive basis must exist for 
classification. Both advantages and disadvantages of classification must 
be weighed. If, after consideration of the provisions of this section, 
there is reasonable doubt, the provisions of Sec. 159a.10(a)(2) apply.
    (b) Identification of Specific Information. Before a classification 
determination is made, each item of information that may require 
protection shall be identified. This requires identification of that 
specific information that comprises the basis for a particular national 
advantage or advantages that, if the information were compromised, would 
or could be damaged, minimized, or lost, thereby adversely affecting 
national security.
    (c) Specific Classifying Criteria. A determination to classify shall 
be made only by an original classification authority when, first, the 
information is within paragraphs (c) (1) through (10) of this section; 
and second, the unauthorized disclosure of the information, either by 
itself or in the context of other information, reasonably could be 
expected to cause damage to the national security. The determination 
involved in the first step is separate and distinct from that in the 
second. Except as provided in paragraph (d) of this section, the fact 
that the information falls under one or more of the criteria shall

[[Page 806]]

not mean that the information automatically meets the damage criteria. 
Information shall be considered for classification if it concerns:
    (1) Military plans, weapons, or operations;
    (2) Vulnerabilities or capabilities of systems, installations, 
projects, or plans relating to the national security;
    (3) Foreign government information;
    (4) Intelligence activities including special activities, or 
intelligence sources or methods;
    (5) Foreign relations or foreign activities of the United States;
    (6) Scientific, technological, or economic matters relating to the 
national security;
    (7) U.S. Government programs for safeguarding nuclear materials or 
facilities;
    (8) Cryptology;
    (9) A confidential source; or
    (10) Other categories of information that are related to national 
security and that require protection against unauthorized disclosure as 
determined by the Secretary of Defense or Secretaries of the Military 
Departments. Recommendations concerning the need to designate additional 
categories of information that may be considered for classification 
shall be forwarded through channels to the appropriate Secretary for 
determination. Each such determination shall be reported promptly to the 
Director of Security Plans and Programs, ODUSD(P), for promulgation in 
an Appendix to this part and reporting to the Director, ISOO.
    (d) Presumption of Damage. Unauthorized disclosure of foreign 
government information, the identity of a confidential foreign source, 
or intelligence sources or methods is presumed to cause damage to the 
national security.
    (e) Limitations on Classification. (1) classification may not be 
used to conceal violations of law, inefficiency, or administrative 
error, to prevent embarrassment to a person, organization or agency, or 
to restrain competition.
    (2) Basic scientific research information not clearly related to 
national security may not be classified.
    (3) A product of nongovernment research and development that does 
not incorporate or reveal classified information to which the producer 
or developer was given prior access may not be classified until and 
unless the government acquires a proprietary interest in the product. 
This prohibition does not affect the provisions of the Patent Secrecy 
Act of 1952.
    (4) References to classified documents that do not reveal classified 
information may not be classified or used as a basis for classification.
    (5) Classification may not be used to limit dissemination of 
information that is not classifiable under the provisions of E.O. 12356 
or this part or to prevent or delay public release of such information.
    (6) Information may be classified or reclassified after receiving a 
request for it under the Freedom of Information Act, the Privacy Act, or 
the mandatory review provisions of this part (Sec. 159a.26) if such 
classification is consistent with this part and is accomplished 
personally and on a document-by-document basis, except as provided in 
paragraph (e)(7) of this section, by the Secretary or Deputy Secretary 
of Defense, by the Secretaries or Under Secretaries of the Military 
Departments, by the senior official designated by each Secretary under 
Sec. 5.3(a) of E.O. 12356, or by an official with original Top Secret 
classification authority.
    (7) The Secretary of Defense and the Secretaries of the Military 
Departments may reclassify information previously declassified and 
disclosed, and they may classify unclassified information that has been 
disclosed, if they determine in writing that the information requires 
protection in the interest of national security and the information may 
reasonably be recovered. Any such reclassification or classification 
shall be reported to the DUSD(P) for subsequent reporting to the 
Director, ISOO.
    (f) Classifying Scientific Research Data. Ordinarily, except for 
information that meets the definition of Restricted Data, basic 
scientific research or its results shall not be classified. However, 
classification would be appropriate if the information concerns an 
unusually significant scientific breakthrough and there is sound reason 
to believe that it is not known or within the state-of-the-art of other 
nations, and it supplies

[[Page 807]]

the United States with an advantage directly related to national 
security.
    (g) Classifying Documents. Each document and portion thereof shall 
be classified on the basis of the information it contains or reveals. 
The fact that a document makes reference to a classified document is not 
a basis for classification unless the reference citation, standing 
alone, reveals classified information. The overall classification of a 
document or group of physically-connected documents shall be at least as 
high as that of the most highly classified component. The subject or 
title of a classified document normally should be unclassified. When the 
information revealed by a subject or title warrants classification, an 
unclassified short title should be added for reference purposes.
    (h) Classifying Material Other Than Documents. (1) Items of 
equipment or other physical objects shall be classified only when 
classified information may be derived from them by visual observation of 
their internal or external appearance or structure, or by their 
operation, test, application, or use. The overall classification 
assigned to end items of equipment or objects shall be at least as high 
as the highest classification of any of its integrated parts.
    (2) If mere knowledge of the existence of the item of equipment or 
object would compromise or nullify its national security advantage, its 
existence would warrant classification.
    (i) State of the Art and Intelligence. Classification requires 
consideration of the information available from intelligence sources 
concerning the extent to which the same or similar information is known 
or is available to others. It is also important to consider whether it 
is known, publicly or internationally, that the United States has the 
information or even is interested in the subject matter. The state-of-
the-art in other nations may often be a vital consideration.
    (j) Effect of Open Publication. Classified information shall not be 
declassified automatically as a result of any unofficial publication or 
inadvertent or unauthorized disclosure in the United States or abroad of 
identical or similar information. Appearance in the public domain of 
information currently classified or being considered for classification 
does not preclude initial or continued classification. However, such 
disclosures require immediate determination of the degree of damage to 
the national security and reevaluation of the information to determine 
whether the publication has so compromised the information that 
downgrading or declassification is warranted. Similar consideration must 
be given to related items of information in all programs, projects, or 
items incorporating or pertaining to the compromised items of 
information. Holders should continue classification until advised to the 
contrary by a competent government authority.
    (k) Reevaluation of Classification Because of Compromise. Classified 
information, and information related thereto, that has been lost or 
possibly compromised, shall be reevaluated and acted upon as follows:
    (1) The original classifying authority, upon learning that a loss or 
possible compromise of specific classified information has occurred, 
shall prepare a written damage assessment and;
    (i) Reevaluate the information involved and determine whether (A) 
Its classification should be continued without change; (B) The specific 
information, or parts therof, should be modified to minimize or nullify 
the effects of the reported compromise and the classification retained; 
(C) Declassification, downgrading, or upgrading is warranted; and (D) 
Counter-measures are appropriate and feasible to negate or minimize the 
effect of the compromise.
    (ii) Give prompt notice to all holders of such information when the 
determination is within categories (A), (C), or (D) of paragraph 
(k)(1)(i) of this section.
    (2) Upon learning that a compromise or probable compromise has 
occurred, any official having original classification jurisdiction over 
related information shall reevaluate the related information and 
determine whether one of the courses of action enumerated in paragraph 
(k)(1)(i) of this section should be taken or, instead, whether upgrading 
of the related information is warranted. When such a determination is 
within categories (B), (C), or (D) of

[[Page 808]]

paragraph (k)(1)(i) of this section, that upgrading of the related items 
is warranted, prompt notice of the determination shall be given to all 
holders of the related information.
    (l) Compilation of Information. Certain information that would 
otherwise be unclassified may require classification when combined or 
associated with other unclassified information. However, a compilation 
of unclassified items of information should normally not be classified. 
In unusual circumstances, classification may be required if the 
combination of unclassified items of information provides an added 
factor that warrants classification under paragraph (c) of this section. 
Classification on this basis shall be fully supported by a written 
explanation that will be provided with the material so classified.
    (m) Extracts of Information. Information extracted from a classified 
source shall be derivatively classified or not classified in accordance 
with the classification markings shown in the source. The overall and 
internal markings of the source should supply adequate classification 
guidance. If internal markings or classification guidance are not found 
in the source, and no reference is made to an applicable and available 
classification guide, the extracted information shall be classified 
according either to the overall marking of the source, or guidance 
obtained from the classifier of the source material.



Sec. 159a.16  Duration of original classification.

    (a) General. When a determination is made by an official with 
authority to classify originally information as Top Secret, Secret, or 
Confidential, such official must also determine how long the 
classification shall remain in effect.
    (b) Duration of Classification. (1) Information shall be classified 
as long as required by national security considerations.
    (2) When it can be determined, a specific date or event for 
declassification shall be set by the original classification authority 
at the time the information is classified originally. Such dates or 
events shall be consistent with national security. Any event specified 
for declassification shall be an event certain to occur.
    (3) Original classification authorities may not be able to 
predetermine a date or event for automatic declassification in which 
case they shall provide for the indefinite duration of classification.
    (4) Information classified under predecessor orders and marked for 
declassification review shall remain classified until reviewed for 
declassification under the provisions of this part.
    (c) Subsequent Extension of Duration of Classification. The duration 
of classification specified at the time of original classification may 
be extended only by officials with requisite original classification 
authority and only if all known holders of the information can be 
notified of such action before the date or event previously set for 
declassification. Any decision to continue classification of information 
designated for automatic declassification under E.O. 12065 or 
predecessor orders, other than on a document-by-document basis, shall be 
reported to the DUSD(P) who shall, in turn, report to the Director, 
ISOO.



Sec. 159a.17  Classification guides.

    (a) General. (1) A classification guide shall be issued for each 
classified system, program, plan, or project as soon as practicable 
before the initial funding or implementation of the system, program, 
plan or project. Successive operating echelons shall prescribe more 
detailed supplemental guides that are considered essential to assure 
accurate and consistent classification. In preparing classification 
guides, originators shall review DoD 5200.1-H \5\.
---------------------------------------------------------------------------

    \5\ See footnote 2 to Sec. 159a.3.
---------------------------------------------------------------------------

    (2) Classification guides shall:
    (i) Identify the information elements to be protected, using 
categorization to the extent necessary to ensure that the information 
involved can be identified readily and uniformly;
    (ii) State which the classification designations (that is, Top 
Secret, Secret, or Confidential) applies to each element or category of 
information;
    (iii) State declassification instructions for each element or 
category of information in terms of a period of

[[Page 809]]

time, the occurrence of an event, or a notation that the information 
shall not be declassified automatically without approval of the 
originating agency; and
    (iv) State any special public release procedures and foreign 
disclosure considerations.
    (3) Each classification guide shall be approved personally and in 
writing by an official who:
    (i) Has program or supervisory responsibility over the information 
or is the senior agency official designated by the Secretary of Defense 
or Secretaries of the Military Departments in accordance with 
Sec. 5.3(a) of E.O. 12356; and
    (ii) Is authorized to classify information originally at the highest 
level of classification prescribed in the guide.
    (b) Multiservice Interest. For each classified system, program, 
project, plan, or item involving more than one DoD Component, a 
classification guide shall be issued by: (1) The element in the Office 
of the Secretary of Defense that assumes or is expressly designated to 
exercise overall cognizance over it; or (2) The DoD Component that is 
expressly designated to serve as the executive or administrative agent 
for the particular effort. When there is doubt which Component has 
cognizance of the information involved, the matter shall be referred to 
the DUSD(P) for resolution.
    (c) Research, Development, Test, and Evaluation. A program security 
classification guide shall be developed for each system and equipment 
development program that involves research, development, test, and 
evaluation (RDT&E) of classified technical information. For each such 
program covered by an approved Decision Coordinating Paper (DCP) or 
Program Objective Memorandum (POM), initial basic classification 
guidance applicable to technical characteristics of the system or 
equipment shall be developed and submitted with the proposed DCP or POM 
to the Director, Defense Research and Engineering for approval. A 
detailed classification guide shall be developed and issued as near in 
time as possible to the approval of the DCP or POM.
    (d) Project Phases. Whenever possible, classification guides shall 
cover specifically each phase of transition, that is, RDT&E, 
procurement, production, service use, and obsolescence, with changes in 
assigned classifications to reflect the changing sensitivity of the 
information involved.
    (e) Review of Classification Guides. (1) Classification guides shall 
be reviewed by the originator for currency and accuracy not less than 
once every 2 years. Changes shall be issued promptly. If no changes are 
made, the originator shall so annotate the record copy and show the date 
of the review.
    (2) Classification guides issued before August 1, 1982, that are in 
current use must be updated to meet the requirements of paragraph (a)(2) 
of this section. Such updating shall be accomplished by the next 
biennial review. Converting previous declassification determinations 
directed by classification guides shall be accomplished in accordance 
with the following:
    (i) Automatic declassification dates or events remain in force 
unless changed by competent authority in accordance with 
Sec. 159a.16(c).
    (ii) Dates for declassification review shall be changed to automatic 
declassification dates or provide for the indefinite duration of 
classification.
    (f) Distribution of Classification Guides. (1) A copy of each 
approved classification guide and changes thereto other than those 
covering SCI or a Special Access Program and which discloses information 
that require special access, shall be sent to the Director of Freedom of 
Information and Security Review, Office of the Assistant Secretary of 
Defense (Public Affairs), and to the Director of Security Plans and 
Programs, ODUSD(P). A copy of each approved classification guide 
covering SCI shall be submitted to and maintained by the Senior 
Intelligence Officer who has security cognizance over the issuing 
activity.
    (2) Two copies of each approved classification guide and its changes 
shall be sent by the originator to the Administrator, Defense Technical 
Information Center (DTIC), Defense Logistic Agency, unless such guide is 
classified Top Secret, or covers SCI, or is determined by the approval 
authority of the guide to be too sensitive for automatic

[[Page 810]]

secondary distribution to DoD Components, such as a Special Access 
Program guide revealing the nature of the Program. Each classification 
guide forwarded to DTIC must bear distribution statement B, C, D, E, F, 
or X from DoD Directive 5230.24 \6\ on its front cover or first page if 
there is no cover.
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    \6\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (g) Index of Security Classification Guides. (1) All security 
classification guides, except as provided in paragraph (g)(2) of this 
section, issued under this part shall be listed in DoD 5200.1-I \7\, on 
the basis of information provided on DD Form 2024, ``DoD Security 
Classification Guide Data Elements.'' The originator of each guide shall 
execute DD Form 2024 when the guide is approved, changed, revised, 
reissued, or canceled, and when its biennial review is accomplished. The 
original copy of each executed DD Form 2024 shall be forwarded to the 
Director of Security Plans and Programs, ODUSD(P) who will maintain the 
Index. Report Control Symbol DD-POL (B&AR)1418 applies to this 
information collection system.
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    \7\ Controlled distribution.
---------------------------------------------------------------------------

    (2) Any classification guide that because of classification 
considerations is not listed in accordance with paragraph (g)(1) of this 
section, shall be reported by the originator to the Director of Security 
Plans and Programs, ODUSD(P). The report shall include the title of the 
guide, its date, the classification of the guide, and identification of 
the originating activity. A separate classified list of such guides will 
be maintained. Report Control Symbol DD-POL(B&AR)1418 applies to this 
information collection system.



Sec. 159a.18  Resolution of conflicts.

    (a) General. When two or more offices, headquarters, or activities 
disagree concerning a classification, declassification, or regrading 
action, the disagreement must be resolved promptly.
    (b) Procedures. If agreement cannot be reached by informal 
consultation, the matter shall be referred for decision to the lowest 
superior common to the disagreeing parties. If agreement cannot be 
reached at the major command (or equivalent) level, the matter shall be 
referred for decision to the headquarters office having overall 
classification management responsibilities for the Component. That 
office shall also be advised of any disagreement at any echelon if 
prompt resolution is not likely to occur.
    (c) Final Decision. Disagreements between DoD Component 
headquarters, if not resolved promptly, shall be referred for final 
resolution to the ODUSD(P).
    (d) Timing. Action under this section at each level of consideration 
shall be completed within 30 days. Failure to reach a decision within 30 
days shall be cause for referral to the next level for consideration.



Sec. 159a.19  Obtaining classification evaluations.

    Procedures. If a person not authorized to classify originates or 
develops information that he or she believes should be safeguarded, he 
or she shall:
    (a) Safeguard the information in the manner prescribed for the 
intended classification.
    (b) Mark the information (or cover sheet) with the intended 
classification designation prescribed in Sec. 159a.11;
    (c) Transmit the information under appropriate safeguards to an 
appropriate classification authority for evaluation. The transmittal 
shall state that the information is tentatively marked to protect it in 
transit. If such authority is not readily identifiable, the information 
should be forwarded to a headquarters activity of a DoD Component, to 
the headquarters office having overall classification management 
responsibilities for a DoD Component, or to the DUSD(P). A determination 
whether to classify the information shall be made within 30 days of 
receipt;
    (d) Upon decision by the classifying authority, the tentative 
marking shall be removed. If a classification is assigned, appropriate 
markings shall be applied; but
    (e) In an emergency requiring immediate communication of the 
information, after taking the action prescribed by paragraphs (a) and 
(b) of this section transmit the information and then proceed in 
accordance with paragraph (c) of this section.

[[Page 811]]



Sec. 159a.20  Information developed by private sources.

    (a) General. There are some circumstances in which information not 
meeting the definition in Sec. 159a.9(f) may warrant protection in the 
interest of national security.
    (b) Patent Secrecy Act. The Patent Secrecy Act of 1952 provides that 
the Secretary of Defense, among others, may determine that disclosure of 
an invention by granting of a patent would be detrimental to national 
security. See DoD Directive 5535.2 \8\. A patent application on which a 
secrecy order has been imposed shall be handled as follows within the 
Department of Defense:
---------------------------------------------------------------------------

    \8\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (1) If the patent application contains information that warrants 
classification, it shall be assigned a classification and be marked and 
safeguarded accordingly.
    (2) If the patent application does not contain information that 
warrants classification, the following procedures shall be followed:
    (i) A cover sheet (or cover letter for transmittal) shall be placed 
on the application with substantially the following language:

    The attached material contains information on which secrecy orders 
have been issued by the U.S. Patent Office after determination that 
disclosure would be detrimental to national security (Patent Secrecy Act 
of 1952, 35 U.S.C. 181-188). Its transmission or revelation in any 
manner to an unauthorized person is prohibited by law. Handle as though 
classified CONFIDENTIAL (or such other classification as would have been 
assigned had the patent application been within the definition provided 
in Sec. 159a.9(f)).

    (ii) The information shall be withheld from public release; its 
dissemination within the Department of Defense shall be controlled; the 
applicant shall be instructed not to disclose it to any unauthorized 
person; and the patent application (or other document incorporating the 
protected information) shall be safeguarded in the manner prescribed for 
equivalent classified material.
    (3) If filing of a patent application with a foreign government is 
approved under provisions of the Patent Secrecy Act of 1952 and 
agreements on interchange of patent information for defense purposes, 
the copies of the patent application prepared for foreign registration 
(but only those copies) shall be marked at the bottom of each page as 
follows:

    Withheld under the Patent Secrecy Act of 1952 (35 U.S.C. 181-188). 
Handle as CONFIDENTIAL (or such other level as has been determined).

    (c) Independent Research and Development. (1) Information in a 
document or material that is a product of government-sponsored 
independent research and development conducted without access to 
classified information may not be classified unless the government first 
acquires a proprietary interest in such product.
    (2) If no prior access was given but the person or company 
conducting the independent research or development believes that 
protection may be warranted in the interest of national security, the 
person or company should safeguard the information in accordance with 
Sec. 159a.19 and submit it to an appropriate DoD element for evaluation. 
The DoD element receiving such a request for evaluation shall make or 
obtain a determination whether a classification would be assigned if it 
were government information. If the determination is negative, the 
originator shall be advised that the information is unclassified. If the 
determination is affirmative, the DoD element shall make or obtain a 
determination whether a proprietary interest in the research and 
development will be acquired. If so, the information shall be assigned 
proper classification. If not, the originator shall be informed that 
there is no basis for classification and the tentative classification 
shall be canceled.
    (d) Other Private Information. The procedure specified in 
Sec. 159a.19 shall apply in any case not specified in paragraph (c) of 
this section, such as an unsolicited contract bid, in which private 
information is submitted to a DoD element for a determination of 
classification.



Sec. 159a.21  Regrading.

    (a) Raising to a Higher Level of Classification. The upgrading of 
classified information to a higher level than previously determined by 
officials with

[[Page 812]]

appropriate classification authority and jurisdiction over the subject 
matter is permitted only when all known holders of the information:
    (1) Can be notified promptly of such action, and
    (2) Are authorized access to the higher level of classification, or 
the information can be retrieved from those not authorized access to 
information at the contemplated higher level of classification.
    (b) Classification of Information Previously Determined to be 
Unclassified. Unclassified information, once communicated as such, may 
be classified only when the classifying authority:
    (1) Makes the determination required for upgrading in paragraph (a) 
of this section;
    (2) Determines that control of the information has not been lost by 
such communication and can still be prevented from being lost; and
    (3) In the case of information released to secondary distribution 
centers, such as the DTIC, determines that no secondary distribution has 
been made and can still be prevented (see also Sec. 159a.15(e) (6) and 
(7)).
    (c) Notification. All known holders of information that has been 
upgraded shall be notified promptly of the upgrading action.
    (d) Downgrading. When it will serve a useful purpose, original 
classification authorities may, at the time of original classification, 
specify that downgrading of the assigned classification will occur on a 
specified date or upon the occurrence of a stated event.



Sec. 159a.22  Industrial operations.

    (a) Classification in Industrial Operations. Classification of 
information in private industrial operations shall be based only on 
guidance furnished by the government. Industrial management may not make 
original classification determinations and shall implement the 
classification decisions of the U.S. Government contracting authority.
    (b) Contract Security Classification Specification. DD Form 254, 
``Contract Security Classification Specification,'' shall be used to 
convey contractual security classification guidance to industrial 
management. DD Forms 254 shall be changed by the originator to reflect 
changes in classification guidance and reviewed for currency and 
accuracy not less than once every 2 years. Changes shall conform with 
this part and DoD 5220.22-R and DoD 5220.22-M and shall be provided to 
all holders of the DD Form 254 as soon as possible. When no changes are 
made as a result of the biennial review, the originator shall so notify 
all holders of the DD Form 254 in writing.



               Subpart D--Declassification and Downgrading



Sec. 159a.24  General provisions.

    (a) Policy. Information classified under E.O. 12356 and prior orders 
shall be declassified or downgraded as soon as national security 
considerations permit. Decisions concerning declassification shall be 
based on the loss of sensitivity of the information with the passage of 
time or on the occurrence of an event that permits declassification. 
Information that continues to meet the classification requirements of 
Sec. 159a.15(c) despite the passage of time will continue to be 
protected in accordance with this part.
    (b) Responsibility of Officials. Officials authorized under 
Sec. 159a.12(c) to declassify or downgrade information that is under the 
final classification jurisdiction of the Department of Defense shall 
take such action in accordance with this subpart.
    (c) Declassification Coordination. DoD Component declassification 
review of classified information shall be coordinated with any other DoD 
or non-DoD office, Component, or agency that has a direct interest in 
the subject matter.
    (d) Declassification by the Director of the ISOO. If the Director of 
the ISOO determines that information is classified in violation of E.O. 
12356, the Director may require the activity that originally classified 
the information to declassify it. Any such decision by the Director may 
be appealed through the Director of Security Plans and Programs, 
ODUSD(P), to the National Security Council (NSC). The information shall 
remain classified pending a prompt decision on the appeal.

[[Page 813]]



Sec. 159a.25  Systematic review.

    (a) Assistance to the Archivist of the United States. The Secretary 
of Defense and the Secretaries of the Military Departments shall 
designate experienced personnel to assist the Archivist of the United 
States in the systematic review of classified information. Such 
personnel shall:
    (1) Provide guidance and assistance to National Archives and Records 
Administration (NARA) employees in identifying and separating documents 
and specific categories of information within documents that are deemed 
to require continued classification; and
    (2) Refer doubtful cases to the DoD Component having classification 
jurisdiction over the information or material for resolution.
    (b) Systematic Review Guidelines. The Director of Security Plans and 
Programs, ODUSD(P), in coordination with DoD Components, shall review, 
evaluate, and recommend revisions of DoD Directive 5200.30 \9\ at least 
every 5 years.
---------------------------------------------------------------------------

    \9\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (c) Systematic Review Procedures. (1) Except as noted in this 
subsection, classified information transferred to the NARA that is 
permanently valuable will be reviewed systematically for 
declassification by the Archivist of the United States with the 
assistance of the DoD personnel designated for that purpose under 
paragraph (a) of this section as it becomes 30 years old. Information 
concerning intelligence (including special activities), sources, or 
methods created after 1945, and information concerning cryptology 
created after 1945, accessioned into the NARA will be reviewed 
systematically as it becomes 50 years old. Such information shall be 
downgraded or declassified by the Archivist of the United States under 
E.O. 12356, the directives of the ISOO, and DoD Directive 5200.30.
    (2) All DoD classified information that is permanently valuable and 
in the possession or control of DoD Components, including that held in 
Federal Records Centers or other storage areas, may be reviewed 
systematically for declassification by the DoD Component exercising 
control of such information. Systematic declassification review 
conducted by DoD Components and personnel designated under paragraph (a) 
of this section shall proceed as follows:
    (i) Information over which the Department of Defense exercises 
exclusive or final original classification authority and that under DoD 
Directive 5200.30, the responsible reviewer determines is to be 
declassified, shall be marked accordingly.
    (ii) Information over which the Department of Defense exercises 
exclusive or final original classification authority that, after review, 
is determined to warrant continued protection shall remain classified as 
long as required by national security considerations.
    (3) Classified information over which the Department of Defense does 
not exercise exclusive or final original classification authority 
encountered during DoD systematic review may not be declassified unless 
specifically authorized by the agency having classification jurisdiction 
over it.
    (d) Systematic Review of Classified Cryptologic Information. 
Notwithstanding any other provision of this part, systematic review and 
declassification of classified cryptologic information shall be 
conducted in accordance with special procedures developed in 
consultation with affected agencies by the Director, National Security 
Agency/Chief, Central Security Service, and approved by the Secretary of 
Defense under E.O. 12356 and DoD Directive 5200.30.
    (e) Systematic Review of Intelligence Information. Systematic review 
for declassification of classified information pertaining to 
intelligence activities (including special activities), or intelligence 
sources or methods shall be in accordance with special procedures to be 
established by the Director of Central Intelligence after consultation 
with affected agencies.



Sec. 159a.26  Mandatory declassification review.

    (a) Information Covered. Upon request by a U.S. citizen or permanent 
resident alien, a Federal agency, or a State or local government to 
declassify and release such information, any classified information 
(except as provided in

[[Page 814]]

paragraph (b) of this section) shall be subject to review by the 
originating or responsible DoD Component for declassification in 
accordance with this section.
    (b) Presidential Information. Information originated by a President, 
the White House staff, committees, commissions, or boards appointed by 
the President, or others specifically providing advice and counsel to a 
President or acting on behalf of a President is exempt from the 
provisions of this section.
    (c) Cryptologic Information. Requests for the declassification 
review of cryptologic information shall be processed in accordance with 
the provisions of DoD Directive 5200.30.
    (d) Submission of Requests for Mandatory Declassification Review. 
Requests for mandatory review of DoD classified information shall be 
submitted as follows:
    (1) Requests shall be in writing and reasonably describe the 
information sought with sufficient particularity to enable the Component 
to identify documents containing that information, and be reasonable in 
scope; for example, the request does not involve such a large number or 
variety of documents as to leave uncertain the identity of the 
particular information sought.
    (2) Requests shall be submitted to the Office of the Assistant 
Secretary of Defense (Public Affairs) (ASD(PA)) (entry point for OSD 
records), the Military Department, or other Component most concerned 
with the subject matter that is designated under 32 CFR part 285 to 
receive requests for records under the Freedom of Information Act. These 
offices are identified in appropriate parts of title 32 of the Code of 
Federal Regulations for each DoD Component.
    (e) Requirements for Processing. Unless otherwise directed by the 
ASD(PA), requests for mandatory review shall be processed as follows:
    (1) The designated office shall acknowledge receipt of the request. 
When a request does not satisfy the conditions of paragraph (d)(1) of 
this section, the requester shall be notified that unless additional 
information is provided or the scope of the request narrowed, no further 
action will be undertaken.
    (2) DoD Component action upon the initial request shall be completed 
within 60 days (45 working days). If no determination has been made 
within 60 days (45 working days) of receipt of the request, the 
requester shall be notified of his right to appeal and of the procedures 
for making such an appeal.
    (3) The designated office shall determine whether, under the 
declassification provisions of this part, the requested information may 
be declassified, and, if so, make such information available to the 
requester, unless withholding is otherwise warranted under applicable 
law. If the information may not be released in whole or in part, the 
requester shall be given a brief statement as to the reasons for denial, 
notice of the right to appeal the determination within 60 days (45 
working days) to a designated appellate authority (including name, 
title, and address of such authority), and the procedures for such an 
appeal.
    (4) When a request is received for information classified by another 
DoD Component or an agency outside the Department of Defense, the 
designated office shall:
    (i) Forward the request to such DoD Component or outside agency for 
review together with a copy of the document containing the information 
requested, when practicable and when appropriate, with its 
recommendation to withhold any of the information;
    (ii) Notify the requester of the referral unless the DoD Component 
or outside agency to which the request is referred objects to such 
notice on grounds that its association with the information requires 
protection; and
    (iii) Request, when appropriate, that the DoD Component or outside 
agency notify the referring office of its determination.
    (5) If the request requires the rendering of services for which fees 
may be charged under title 5 of the Independent Offices Appropriation 
Act in accordance with DoD Instruction 7230.7 \1\\0\ the DoD Component 
may calculate the anticipated amount of fees to be charged and ascertain 
the requester's willingness to pay the allowable

[[Page 815]]

charges as a precondition to taking further action upon the request.
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    \1\\0\ See footnote 1 to Sec. 159a.3
---------------------------------------------------------------------------

    (6) A requester may appeal to the head of a DoD Component or 
designee whenever that DoD Component has not acted on an initial request 
within 60 days or the requester has been notified that requested 
information may not be released in whole or in part. Within 30 days 
after receipt, an appellate authority shall determine whether continued 
classification of the requested information is required in whole or in 
part, notify the requester of its determination, and make available to 
the requester any information determined to be releasable. If continued 
classification is required under this part, the requester shall be 
notified of the reasons therefor. If so requested, an appellate 
authority shall communicate its determination to any referring DoD 
Component or outside agency.
    (7) The ASD(PA) shall act as appellate authority for all appeals 
regarding OSD, OJCS, and Unified Command records.
    (f) Foreign Government Information. Requests for mandatory review 
for the declassification of foreign government information shall be 
processed and acted upon under the provisions of this section subject to 
Sec. 159a.76(c).
    (g) Prohibition. No DoD Component in possession of a document shall 
in response to a request under the Freedom of Information Act or this 
section refuse to confirm the existence or nonexistence of the document, 
unless the fact of its existence or nonexistence would itself be 
classifiable under this part.
    (h) Restricted Data and Formerly Restricted Data. Any proposed 
action on a request, including requests from Presidential libraries, for 
DoD classified documents that are marked ``Restricted Data'' or 
``Formerly Restricted Data'' must be coordinated with the Department of 
Energy.



Sec. 159a.27  Declassification of transferred documents or material.

    (a) Material Officially Transferred. In the case of classified 
information or material transferred under statute, E.O., or directive 
from one department or agency or DoD Component to another in conjunction 
with a transfer of functions, as distinguished from transfers merely for 
purposes of storage, the receiving department, agency, or DoD Component 
shall be deemed to be the original classifying authority over such 
material for purposes of downgrading and declassification.
    (b) Material Not Officially Transferred. When a DoD Component has in 
its possession classified information or material originated in an 
agency outside the Department of Defense that has ceased to exist and 
such information or material has not been transferred to another 
department or agency within the meaning of paragraph (a) of this 
section, or when it is impossible to identify the originating agency, 
the DoD Component shall be deemed to be the originating agency for the 
purpose of declassifying or downgrading such information or material. If 
it appears probable that another department, agency, or DoD Component 
may have a substantial interest in the classification of such 
information, the DoD Component deemed to be the originating agency shall 
notify such other department, agency, or DoD Component of the nature of 
the information or material and any intention to downgrade or declassify 
it. Until 60 days after notification, the DoD Component shall not 
declassify or downgrade such information or material without consulting 
the other department, agency, or DoD Component. During this period, the 
other department, agency, or DoD Component may express objections to 
downgrading or declassifying such information or material.
    (c) Transfer for Storage or Retirement. Whenever practicable, 
classified documents shall be reviewed for downgrading or 
declassification before they are forwarded to a Records Center for 
storage or to the NARA for permanent preservation. Any downgrading or 
declassification determination shall be indicated on each document by 
markings as required by subpart E of this part.



Sec. 159a.28  Downgrading.

    (a) Automatic Downgrading. Classified information marked for 
automatic downgrading in accordance with this or

[[Page 816]]

prior regulations or E.Os. is downgraded accordingly without 
notification to holders.
    (b) Downgrading Upon Reconsideration. Classified information not 
marked for automatic downgrading may be assigned a lower classification 
designation by the originator or by an official authorized to declassify 
the same information. Prompt notice of such downgrading shall be 
provided to known holders of the information.



Sec. 159a.29  Miscellaneous.

    (a) Notification of Changes in Declassification. When clasified 
material has been properly marked with specific dates or events for 
declassification, it is not necessary to issue notices of 
declassification to any holders. However, when declassification action 
is taken earlier than originally scheduled, or the duration of 
classification is extended, the authority making such changes shall 
ensure prompt notification of all holders to whom the information was 
originally transmitted. The notification shall specify the marking 
action to be taken, the authority therefor, and the effective date. Upon 
receipt of notification, recipients shall effect the proper changes and 
shall notify holders to whom they have transmitted the classified 
information. See Sec. 159a.34 (a) and (e) for markings and the use of 
posted notices.
    (b) Foreign Relations Series. In order to permit the State 
Department editors of Foriegn Relations of the United States to meet 
their mandated goal of publishing twenty years after the event, DoD 
Components shall assist the editors in the Department of State by easing 
access to appropriate classified materials in their custody and by 
expediting declassification review of items from their files selected 
for possible publication.
    (c) Reproduction for Declassification Review. The provisions of 
Sec. 159a.55(f) shall not restrict the reproduction of documents for the 
purpose of facilitating declassification review under the provisions of 
this subpart or the Freedom of Information Act, as amended. After review 
for declassification, however, those reproduced documents that remain 
classified must be destroyed in accordance with subpart J of this part.



                           Subpart E--Marking



Sec. 159a.31  General provisions.

    (a) Designation. Subject to the exceptions in paragraph (c) of this 
section, information determined to require classification protection 
under this part shall be so designated. Designation by means other than 
physical marking may be used but shall be followed by physical marking 
as soon as possible.
    (b) Purpose of Designation. Designation by physical marking, 
notation, or other means serves to warn the holder about the 
classification of the information involved; to indicate the degree of 
protection against unauthorized disclosure that is required for that 
particular level of classification; and to facilitate downgrading and 
declassification actions.
    (c) Exceptions. (1) No article that has appeared, in whole or in 
part, in newspapers, magazines or elsewhere in the public domain, or any 
copy thereof, that is being reviewed and evaluated to compare its 
content with classified information that is being safeguarded in the 
Department of Defense by security classification, may be marked with any 
security classification, control or other kind of restrictive marking. 
The results of the review and evaluation, if classified, shall be 
separate from the article in question.
    (2) Classified documents and material shall be marked in accordance 
with paragraph (d) of this section unless the markings themselves would 
reveal a confidential source or relationship not otherwise evident in 
the document, material, or information.
    (3) The marking requirements of paragraph (d) (1)(iv) and (2)(iv) of 
this section do not apply to documents or other material that contain, 
in whole or in part, Restricted Data or Formerly Restricted Data 
information. Such documents or other material or portions thereof shall 
not be declassified without approval of the Department of Energy with 
respect to Restricted Data or Formerly Restricted Data information, and 
with respect to any other national security information contained 
therein, the approval of the originating agency.

[[Page 817]]

    (d) Documents or Other Material in General. (1) At the time of 
original classification, the following shall be shown on the face of all 
originally classified documents or clearly associated with other forms 
of classified information in a manner appropriate to the medium 
involved:
    (i) The identity of the original classification authority by 
position title, unless he or she is the signer or approver of the 
document;
    (ii) The agency and office of origin;
    (iii) The overall classification of the document;
    (iv) The date or event for automatic declassification or the 
notation ``Originating Agency's Determination Required'' or ``OADR''; 
and, if applicable,
    (v) Any downgrading action to be taken and the date or event 
thereof.
    (2) At the time of derivative classification, the following shall be 
shown on the face of all derivatively classified documents or clearly 
associated with other forms of classified information in a manner 
appropriate to the medium involved:
    (i) The source of classification, that is, a source document or 
classification guide. If classification is derived from more than one 
source, the phrase ``Multiple Sources'' will be shown and the 
identification of each source will be maintained with the file or record 
copy of the document;
    (ii) The agency and office of origin of the derivatively classified 
document;
    (iii) The overall classification of the document;
    (iv) The date or event for declassification or the notation 
``Originating Agency's Determination Required'' or ``OADR,'' carried 
forward from the classification source. If the classification is derived 
from multiple sources, either the most remote date or event for 
declassification marked on the sources or if required by any source, the 
notation ``Originating Agency's Determination Required'' or ``OADR'' 
shall be shown; and, if applicable,
    (v) Any downgrading action to be taken and the date or event 
thereof.
    (3) In addition to the foregoing, classified documents shall be 
marked as prescribed in Sec. 159a.32, subpart L of this part, if the 
document contains foreign government information, and with any 
applicable special notation listed in Sec. 159a.35. Such notations shall 
be carried forward from source documents to derivatively classified 
documents when appropriate. Provides illustrated guidance on the 
application of classification and associated markings to documents 
prepared by the Department of Defense.
    (4) Material other than paper documents shall show the required 
information on the material itself or if that is not practical, in 
related or accompanying documentation.
    (e) Identification of Classification Authority. (1) Identification 
of a classification authority shall be shown on the ``Classified by'' 
line prescribed under Sec. 159a.34(c) and shall be sufficient, standing 
alone, to identify a particular official, source document or 
classification guide.
    (i) If all information in a document or material is classified as an 
act of original classification, the classification authority who made 
the determination shall be identified on the ``Classified by'' line, 
unless the classifier is also the signer or approver of the document.
    (ii) If the classification of all information in a document or 
material is derived from a single source (for example, a source document 
or classification guide), the ``Classified by'' line shall identify the 
source document or classification guide, including its date when 
necessary to insure positive identification.
    (iii) If the classification of information contained in a document 
or material is derived from more than one original classification 
authority, or an original classification authority and another source, 
or from more than one source document, classification guide, or 
combination thereof, the ``Classified by'' line shall be marked 
``Multiple Sources'' and identification of all such authorities and 
sources shall be maintained with the file or record copy of the 
document.
    (iv) If an official with requisite classification authority has been 
designated by the head of an activity to approve security 
classifications assigned to all information leaving the activity, the 
title of that designated official shall be shown on the ``Classified

[[Page 818]]

by'' line. The designated official shall maintain records adequate to 
support derivative classification actions.
    (2) Guidance concerning the identification of the classification 
authority on electronically transmitted messages is contained in 
Sec. 159a.32(h).
    (3) Guidance concerning the identification of the classification 
authority on DoD documents that contain only foreign or NATO classified 
information is contained in Sec. 159a.77(d).
    (f) Wholly Unclassified Material. Normally, unclassified material 
shall not be marked or stamped ``Unclassified'' unless it is essential 
to convey to a recipient of such material that it has been examined with 
a view to imposing a security classification and that it has been 
determined that it does not require classification. However, the marking 
``Unclassified'' may be applied to formerly classified material.



Sec. 159a.32  Specific markings on documents.

    (a) Overall and Page Marking. Except as otherwise specified for 
working papers, the overall classification of a document, whether or not 
permanently bound, or any copy or reproduction thereof, shall be 
conspicuously marked, stamped or affixed permanently at the top and 
bottom on the outside of the front cover (if any), on the title page (if 
any), on the first page, and on the outside of the back cover (if any). 
Each interior page, except those that are blank, shall be marked top and 
bottom according to its content, to include ``Unclassified'' when no 
classified information is contained on such a page. Alternatively, the 
overall classification of the document may be conspicuously marked or 
stamped at the top and bottom of each interior page when such marking is 
necessary to achieve production efficiency and the particular 
information to which classification is assigned is otherwise 
sufficiently identified consistent with the intent of paragraph (c) of 
Sec. 159a.32. In any case, the classification marking of a page shall 
not supplant the classification marking of portions paragraph (c) of 
this section of the page marked with lower levels of classification.
    (b) Marking Components. The major components of some complex 
documents are likely to be used separately. In such instances, each 
major component shall be marked as a separate document in accordance 
with Sec. 159a.31. Examples include each annex, appendix, or similar 
component of a plan, program, or operations order; attachments and 
appendices to a memorandum or letter; and each major part of a report. 
If an entire major component is unclassified, the first page of the 
component may be marked at the top and bottom with the designation 
``UNCLASSIFIED'' and a statement included, such as, ``All portions of 
this (annex, appendix, etc.) are UNCLASSIFIED.'' When this method of 
marking is used, no further markings are required on the unclassified 
major component.
    (c) Portion Marking. (1) Each section, part, paragraph, or similar 
portion of a classified document shall be marked to show the level of 
classification of the information contained in or revealed by it, or 
that it is unclassified. Portions of documents shall be marked in a 
manner that eliminates doubt as to which of its portions contains or 
reveals classified information. Classification levels of portions of a 
document, except as provided in paragraph (e) of this section, shall be 
shown by the appropriate classification symbol placed immediately 
following the portion's letter or number, or in the absence of letters 
or numbers, immediately before the beginning of the portion. In marking 
sections, parts, paragraphs, or similar portions, the parenthetical 
symbols ``(TS)'' for Top Secret, ``(S)'' for Secret, ``(C)'' for 
Confidential, and ``(U)'' for unclassified, shall be used. When 
appropriate, the symbols ``RD'' for Restricted Data and ``FRD'' for 
Formerly Restricted Data shall be added, for example, ``(S-RD)'' or 
``(C-FRD).'' In addition, portions that contain Critical Nuclear Weapon 
Design Information (CNWDI) will be marked ``(N)'' following the 
classification, for example, ``(S-RD)(N).''
    (2) Portion marking of DoD documents containing foreign government 
information shall be in accordance with Sec. 159a.77(d).
    (3) Illustrations, photographs, figures, graphs, drawings, charts 
and similar portions of classified documents will be clearly marked to 
show

[[Page 819]]

their classification or unclassified status. Such markings shall not be 
abbreviated and shall be prominent and placed within or contiguous to 
the portion. Captions of such portions shall be marked on the basis of 
their content alone by placing the symbol ``(TS),'' ``(S),'' ``(C),'' or 
``(U)'' immediately preceding the caption.
    (4) If, in an exceptional situation, parenthetical portion marking 
is determined to be impracticable, the document shall contain a 
statement sufficient to identify the information that is classified and 
the level of such classification. Thus, for example, each portion of a 
classified document need not be marked separately if all portions are 
classified at the same level, provided a statement to that effect is 
included in the document. In the case of classified compilations, the 
explanations required by paragraph (d) of this section meet this 
requirement.
    (5) When elements of information in one portion require different 
classifications, but segregation into separate portions would destroy 
continuity or context, the highest classification required for any item 
shall be applied to that portion or paragraph.
    (6) Waivers of the foregoing portion marking requirements may be 
granted for good cause. Any request by a DoD Component senior official 
for a waiver of portion marking requirements shall be submitted to the 
DUSD(P) and include the following:
    (i) Identification of the information or class of documents for 
which such waiver is sought;
    (ii) Detailed explanation of why the waiver should be granted;
    (iii) The Component's judgment of the anticipated dissemination of 
the information or class of documents for which the waiver is sought, 
and
    (iv) The extent to which such information subject to the waiver may 
be a basis for derivative classification. Waivers shall be granted only 
upon a written determination by the DUSD(P) as the designee of the 
Secretary of Defense, that there will be minimal circulation of the 
specified documents or information, and minimal potential usage of these 
documents or information as a source for derivative classification 
determinations; or there is some other basis to conclude that the 
benefits of portion marking are clearly outweighed by the increased 
administrative burdens. The granting and revocation of portion marking 
waivers shall be reported to the Director of the ISOO by the DUSD(P).
    (d) Compilations--(1) Documents. When classification is required to 
protect a compilation of unclassified information pursuant to 
Sec. 159a.15(1), the overall classification assigned to such documents 
shall be placed conspicuously at the top and bottom of each page and on 
the outside of the front and back covers, if any, and an explanation of 
the basis for the assigned classification shall be included on the 
document or on its text.
    (2) Portions of Documents. If a classified document contains 
particular portions that are unclassified when standing alone, but 
classified information will be revealed when they are combined or 
associated, those portions shall be marked as unclassified, the page 
shall be marked with the highest classification of any information on or 
revealed by the page, and an explanation shall be added to the page, or 
to the document, to explain the classification of the combination or 
association to the holder. This method of marking also may be used if 
classified portions on a page, or within a document, will reveal 
information of a higher classification when they are combined or 
associated than when they are standing alone.
    (e) Subjects and Titles of Documents. Subjects or titles of 
classified documents shall be marked with the appropriate symbol, 
``(TS),'' ``(S),'' ``(C),'' or ``(U)'' placed immediately following and 
to the right of the item. When applicable, other appropriate symbols, 
for example, ``(RD)'' or ``(FRD),'' shall be added. (Subjects or titles 
of documents should be unclassified, if possible.)
    (f) File, Folder, or Group of Documents. When a file, folder, or 
group of classified documents is removed from secure storage it shall be 
marked conspicuously with the highest classification of any classified 
document included therein or shall have an appropriate classified 
document cover sheet affixed.

[[Page 820]]

    (g) Transmittal Documents. A transmittal document, including 
endorsements and comments when such endorsements and comments are added 
to the basic communication, shall carry on its face a prominent notation 
of the highest classification of the information transmitted by it, and 
a legend showing the classification, if any, of the transmittal 
document, endorsement, or comment standing alone. For example, an 
unclassified document that transmits as an attachment a classified 
document shall bear a notation substantially as follows: ``UNCLASSIFIED 
WHEN SEPARATED FROM CLASSIFIED ENCLOSURE.''
    (h) Electronically Transmitted Messages. (1) The copy of a 
classified message (for example, DD Form 173, Joint Messageform) 
approved for electronic transmission and maintained as the record copy 
shall be marked as required by Sec. 159a.31(d) for other documents. 
Additionally, copies not electronically transmitted (such as, mail and 
courier copies) shall be marked as required by Sec. 159a.31(d).
    (2) The first item of information in the text of a classified 
electronically transmitted message shall be its overall classification. 
Paper copies of classified electronically transmitted messages shall be 
marked at the top and bottom with the assigned classification. Portions 
shall be marked as prescribed herein for paper copies of documents. When 
such messages are printed by an automated system, classification 
markings may be applied by that system, provided that page markings so 
applied are clearly distinguishable on the face of the document from the 
printed text.
    (3) The originator of a classified electronically transmitted 
message shall be considered the accountable classifier under 
Sec. 159a.15(a). The highest level official identified on the message as 
the sender or, in the absence of such identification, the head of the 
organization originating the message, is deemed to be the classifier of 
the message. Thus, a ``Classified by'' line is not required on such 
messages. The originator is responsible for maintaining adequate records 
as required by Sec. 159a.31(d)(2) to show the source of an assigned 
derivative classification.
    (4) The last line of text of a classified electronically transmitted 
message shall show the date or event for downgrading, if appropriate, 
and the date or event for automatic declassification or ``Originating 
Agency's Determination Required,'' by abbreviated markings from 
Sec. 159a.34. The foregoing is not required for messages that contain 
information identified as Restricted Data or Formerly Restricted Data.
    (5) Any document, the classification of which is based solely upon 
the classification of the content of a classified electronically 
transmitted message, shall cite the message on the ``Classified by'' 
line of the newly created document.
    (i) Translations. Translations of U.S. classified information into a 
language other than English shall be marked to show the United States as 
the country of origin, with the appropriate U.S. classification markings 
and the foreign language equivalent thereof (see Appendix A to this 
part).



Sec. 159a.33  Markings on special categories of material.

    (a) General Provisions. Security classification and applicable 
associated markings (see Sec. 159a.31(d) and Sec. 159a.33(k)) assigned 
by the classifier shall be conspicuously stamped, printed, written, 
painted, or affixed by means of a tag, sticker, decal, or similar 
device, on classified material other than paper copies of documents, and 
on containers of such material, if possible. If marking the material or 
container is not practicable, written notification of the security 
classification and applicable associated markings shall be furnished to 
recipients. The following procedures for marking various kinds of 
materials containing classified information are not all inclusive and 
may be varied to accommodate the physical characteristics of the 
material containing the classified information and to accommodate 
organizational and operational requirements.
    (b) Charts, Maps, and Drawings. Charts, maps, and drawings shall 
bear the appropriate classification marking for the legend, title, or 
scale blocks in a manner that differentiates between

[[Page 821]]

the overall classification of the document and the classification of the 
legend or title itself. The higher of these markings shall be inscribed 
at the top and bottom of each such document. When folding or rolling 
charts, maps, or drawings would cover the classification markings, 
additional markings shall be applied that are clearly visible when the 
document is folded or rolled. Applicable associated markings shall be 
included in or near the legend, title, or scale blocks.
    (c) Photographs, Films, and Recordings. Photographs, films 
(including negatives), recordings, and their containers shall be marked 
to assure that a recipient or viewer will know that classified 
information of a specified level of classification is involved.
    (1) Photographs. Negatives and positives shall be marked, whenever 
practicable, with the appropriate classification designation and 
applicable associated markings. Roll negatives or positives may be so 
marked at the beginning and end of each strip. Negatives and positives 
shall be kept in containers bearing conspicuous classification markings. 
All prints and reproductions shall be conspicuously marked with the 
appropriate classification designation and applicable associated 
markings on the face side of the print if possible. When such markings 
cannot be applied to the face side, they may be stamped on the reverse 
side or affixed by pressure tape label, stapled strip, or other 
comparable means.

    Note: When self-processing film or paper is used to photograph or 
reproduce classified information, all parts of the last exposure shall 
be removed from the camera and destroyed as classified waste, or the 
camera shall be protected as classified.

    (2) Transparencies and Slides. Applicable classification markings 
shall be shown clearly in the image area of each transparency or slide, 
if possible. In the case of a 35mm or a similar size transparency or 
slide where the classification markings are not conspicuous unless 
projected on a screen, for example, the classification markings also 
shall be marked on its border, holder, or frame. Duplicate 
classification markings in image areas and on borders, holders, or 
frames are required if there is any doubt that the image area markings 
are not conspicuous enough to be seen when the transparencies or slides 
are not being projected. Other applicable associated markings shall be 
shown in the image area, or on the border, holder, or frame, or in 
accompanying documention. It is not necessary that each transparency or 
slide of a set of transparencies or slides bear applicable associated 
markings when the set is controlled as a single document. In such cases, 
the first transparency or slide shall bear the applicable associated 
markings.
    (3) Motion Picture Films and Video Tapes. Classified motion picture 
films and video tapes shall be marked at the beginning and end by titles 
bearing the appropriate classification markings. Applicable associated 
markings shall be included at the beginning of such films or tapes. All 
such marking shall be visible when projected. Reels and cassettes shall 
be marked with the appropriate classification and kept in containers 
bearing conspicuous classification and applicable associated markings.
    (4) Recordings. Sound, magnetic, or electronic recordings shall 
contain at the beginning and end a clear statement of the assigned 
classification that will provide adequate assurance that any listener or 
viewer will know that classified information of a specified level is 
involved. Recordings shall be kept in containers or on reels that bear 
conspicuous classification and applicable associated markings.
    (5) Microforms. Microforms are images, usually produced 
photographically on transparent or opaque materials, in sizes too small 
to be read by the unaided eye. Accordingly, the assigned security 
classification and abbreviated applicable associated markings shall be 
conspicuously marked on the microform medium or its container, so as to 
be readable by the unaided eye. These markings shall also be included on 
the image so that when the image is enlarged and displayed or printed, 
the markings will be conspicuous and readable. Such marking will be 
accomplished as appropriate for the particular microform involved. For 
example, roll film microforms (or roll microfilm employing 16, 35, 70, 
or 105 mm films) may generally be marked as

[[Page 822]]

provided for roll motion picture film in Sec. 159a.33(c)(3) and decks of 
``aperture cards'' may be marked as provided in Sec. 159a.33(d) for 
decks of automatic data processing punched cards. Whenever possible, 
microfiche, microfilm strips, and microform chips shall be marked in 
accordance with this paragraph.
    (d) Decks of ADP Punched Cards. When a deck of classified ADP 
punched cards is handled and controlled as a single document, only the 
first and last card require classification markings. An additional card 
shall be added (or the job control card modified) to identify the 
contents of the deck and the highest classification therein. Such 
additional card shall include applicable associated markings. Cards 
removed for separate processing or use and not immediately returned to 
the deck shall be protected to prevent compromise of any classified 
information contained therein, and for this purpose shall be marked 
individually as prescribed in Sec. 159a.32(a).
    (e) Removable ADP and Word Processing Storage Media--(1) External. 
Removable information storage media and devices, used with ADP systems 
and typewriters or word processing systems, shall bear external markings 
clearly indicating the classification of the information and applicable 
associated markings. Included are media and devices that store 
information recorded in analog or digital form and that are generally 
mounted or removed by the users or operators. Examples include magnetic 
tape reels, cartridges, and cassettes; removable discs, disc cartridges, 
disc packs and diskettes; paper tape reels; and magnetic cards.
    (2) Internal. ADP systems and word processing systems employing such 
media shall provide for internal classification marking to assure that 
classified information contained therein that is reproduced or 
generated, will bear applicable classification and associated markings. 
An exception may be made by the DoD Component head, or designee, for the 
purpose of exempting existing word processing systems when the internal 
classification and applicable associated markings cannot be implemented 
without extensive system modification, provided procedures are 
established to ensure that users and recipients of the media, or the 
information therein, are clearly advised of the applicable 
classification and associated markings. For ADP systems, exceptions may 
be authorized by the DoD Component Designated Approving Authority or 
Authorities, designated under DoD Directive 5200.28. For purposes of 
these exemption provisions, ``existing systems'' means word processing 
and ADP systems already acquired, or, in the case of associated 
automated information systems, those for which the life cycle management 
process has already progressed beyond the ``definition/design'' phase as 
set forth in DoD Directive 7920.1 \11\. Requirements for the security of 
nonremovable ADP storage media and clearance or declassification 
procedures for various ADP storage media are contained in DoD 5200.28-M 
\1\\2\.
---------------------------------------------------------------------------

    \1\\1\ See footnote 1 to Sec. 159a.3.
    \1\\2\ See footnote 7 to Sec. 159a.16(g)(1).
---------------------------------------------------------------------------

    (f) Documents Produced by ADP Equipment. The first page, and the 
front and back covers, if any, of documents produced by ADP equipment 
shall be marked as prescribed in Sec. 159a.32(a). Interior pages also 
shall be marked as prescribed in Sec. 159a.32(a) except that the 
classification markings of interior pages of fan-folded printouts may be 
applied by the ADP equipment. When the application of associated 
markings prescribed by Sec. 159a.31(d) by the ADP equipment is not 
consistent with economical and efficient use of such equipment, such 
markings may be applied to a document produced by ADP equipment by 
superimposing upon the first page of such document a ``Notice of 
Declassification Instructions and Other Associated Markings.'' Such 
notice shall include the date or event for declassification or the 
notation ``Originating Agency's Determination Required'' or ``OADR'' and 
all other such applicable markings. If individual pages of a document 
produced by ADP equipment are removed or reproduced for distribution to 
other users, each such page or group of pages shall be marked as 
prescribed in Sec. 159a.31(d) or by superimposing upon each such page or 
group of pages, a copy of any ``Notice of Declassification Instructions

[[Page 823]]

and Other Associated Markings'' applicable to such page or group of 
pages.
    (g) Material for Training Purposes. In using unclassified documents 
or material to simulate classified documents or material for training 
purposes, such documents or material shall be marked clearly to indicate 
the actual unclassified status of the information, for example, 
``(insert classification designation) for training; otherwise 
unclassified'' or ``UNCLASSIFIED SAMPLE.''
    (h) Miscellaneous Material. Documents and material such as rejected 
copy, typewriter ribbons, carbons, and similar items developed in 
connection with the handling, processing, production, and of use 
classified information shall be handled in a manner that assures 
adequate protection of the classified information involved and 
destruction at the earliest practicable time (see Sec. 159a.32). Unless 
a requirement exists to retain this material or documents for a specific 
purpose, there is no need to mark, stamp, or otherwise indicate that the 
information is classified.
    (i) Special Access Program Documents and Material. Additional 
markings as prescribed in directives, regulations and instructions 
relating to an approved Special Access Program shall be applied to 
documents and material containing information subject to the special 
access program. Such additional markings shall not serve as the sole 
basis for continuing classification of the documents or material to 
which the markings have been applied. When appropriate, such markings 
shall be excised to ease timely declassification, downgrading, or 
removal of the information from special control procedures.
    (j) Secure Telecommunications and Information Handling Equipment. 
Applicable classification or Controlled Cryptographic Item (CCI) 
markings shall be applied to secure telecommunications and information 
handling equipment or associated cryptographic components. Safeguarding 
and control procedures for classified and CCI equipment and for 
safeguarding COMSEC facilities are contained in DoD Instruction 5230.22 
\12\a, National Communications Security Committee (NCSC) 
Policy Directive 6, DoD Directive C-5200.5 \1\\3\, National 
Telecommunications and Information Systems Security Instruction 4001, 
and National COMSEC Instruction 4003, 4006, and 4008.
---------------------------------------------------------------------------

    \12\a See footnote 1 to Sec. 159a.3.
    \13\ Classified document. Not releasable to the public.
---------------------------------------------------------------------------

    (k) Associated Markings. Other applicable associated markings 
required for documents by Sec. 159a.31(d) shall be accomplished as 
prescribed in this section or in any other appropriate manner.



Sec. 159a.34  Classification authority, duration, and change in classification markings.

    (a) Declassification and Regrading Marking Procedures. When 
classified information is downgraded or declassified in accordance with 
the assigned downgrading or declassification markings, such markings 
shall be a sufficient notation of the authority for such action. 
Whenever classified information is downgraded or declassified earlier 
than originally scheduled, or upgraded, the material shall be marked 
promptly and conspicuously to indicate the change, the authority for the 
action, the date of the action and the identity of the person taking the 
action. In addition, except for upgrading (see paragraph (d) of this 
section), prior classification markings shall be canceled, if 
practicable, but in any event those on the cover (if any) and first page 
shall be canceled, and the new classification markings, if any, shall be 
substituted.
    (b) Applying Derivative Declassification Dates. (1) New material 
that derives its classification from information classified on or after 
August 1, 1982, shall be marked with the declassification date, event, 
or the notation ``Originating Agency's Determination Required'' or 
``OADR'' assigned to the source information.
    (2) New material that derives its classification from information 
classified prior to August 1, 1982, shall be treated as follows:
    (i) If the source material bears a declassification date or event, 
that date or event shall be carried forward to the new material;

[[Page 824]]

    (ii) If the source material bears no declassification date or event, 
or bears an indeterminate date or event such as ``Upon Notification by 
Originator,'' ``Cannot Be Determined,'' or ``Impossible to Determine,'' 
or is marked for declassification review, the new material shall be 
marked with the notation ``Originating Agency's Determination Required'' 
or ``OADR''; or
    (iii) If the source material is foreign government information 
bearing no date or event for declassification or is marked for 
declassification review, the new material shall be marked with the 
notation ``Originating Agency's Determination Required'' or ``OADR.''
    (3) New material that derives its classification from a 
classification guide issued prior to August 1, 1982, that has not been 
updated to conform with this Regulation shall be treated as follows:
    (i) If the guide specifies a declassification date or event, that 
date or event shall be applied to the new material; or
    (ii) If the guide specifies a declassification review date, the 
notation ``Originating Agency's Determination Required'' or ``OADR'' 
shall be applied to the new material.
    (c) Commonly Used Markings. Each classified document is marked on 
its face with one or more of the following markings:
    (1) Original Classification. The following markings are used in 
original classification Sec. 159a.31(d)(1):

    Classified by ________________ (See Note 1)
    Declassify on ________________ (See Note 2)
        Message Abbreviation:
    DECL ________________ (See Note 3)

    (2) Derivative Classification. The following markings are used in 
derivative classification Sec. 159a.31(d)(2):

    Classified by ________________ (See Note 4)
    Declassify on ________________ (See Note 5)
        Message Abbreviation:
    DECL ________________ (See Note 3)

    (3) Downgrading. The following marking is used to specify a 
downgrading Sec. 159a.31(d) (1) and (2):

    Downgrade to ________ on ________ (See Note 6)
        Message Abbreviation:
    DNG/____/____________ (See Note 7)

    Note 1: Insert identification (position title) of the original 
classification authority. This line may be omitted if the original 
classification authority is also the signer or approver of the document.
    Note 2: Insert the specific date, an event certain to occur, or the 
notation ``Originating Agency's Determination Required'' or ``OADR.''
    Note 3: Insert day, month, and year for declassification, for 
example, ``6 Jun 90,'' an event certain to occur, or ``OADR.''
    Note 4: Insert identity of the single security classification guide, 
source document, or other authority for the classification. If more than 
one such source is applicable, insert the phrase ``Multiple Sources.''
    Note 5: Insert the specific date or event for declassification or 
the notation ``Originating Agency's Determination Required'' or 
``OADR.'' When multiple sources are used, either the most remote date or 
event for declassification marked on the sources or, if present on any 
source, the notation ``Originating Agency's Determination Required'' or 
``OADR'' is applied to the new document.
    Note 6: Insert Secret or Confidential and specific date or event, 
for example, ``Downgrade to CONFIDENTIAL on 6 July 1988.''
    Note 7: Insert ``S'' or ``C'' to indicate the downgraded 
classification and specific date or event, for example, ``DNG/C/6 Jun 
87.''

    (4) There is no requirement for adding declassification instructions 
on documents with Restricted Data or Formerly Restricted Data markings 
(see Sec. 159a.31(b)(3) and Sec. 159a.35 (a) and (b)). Except for 
electronically transmitted messages, only a completed ``Classified by'' 
line is added to documents so marked.
    (5) Electronically transmitted messages do not require a 
``classified by'' line (See Sec. 159a.32(h)(3)).
    (6) DoD 5200.1-PH provides additional marking guidance.
    (d) Upgrading. When material is upgraded it shall be promptly and 
conspicuously marked as prescribed in paragraph (a) of this section 
except that in all such cases the old classification markings shall be 
canceled and new markings substituted.
    (e) Limited Use of Posted Notice for Large Quantities of Material. 
(1) When the volume of material is such that prompt remarking of each 
classified item cannot be accomplished without unduly interfering with 
operations, the custodian may attach downgrading and declassification 
notices to the storage unit instead of the remarking required by 
paragraph (a) of this section. Each notice shall specify the authority 
for

[[Page 825]]

the downgrading or declassification action, the date of the action, and 
the storage unit to which it applies.
    (2) When individual documents or materials are permanently withdrawn 
from storage units, they shall be remarked promptly as prescribed by 
paragraph (a) of this section. However, when documents or materials 
subject to a downgrading or declassification notice are withdrawn from 
one storage unit solely for transfer to another, or a storage unit 
containing such documents or materials is transferred from one place to 
another, the transfer may be made without remarking if the notice is 
attached to or remains with each shipment.



Sec. 159a.35  Additional warning notices.

    (a) General Provisions. (1) In addition to the marking requirements 
prescribed in Sec. 159a.31(d), the warning notices prescribed in this 
section shall be displayed prominently on classified documents or 
materials, when applicable. In the case of documents, these warning 
notices shall be marked conspicuously on the outside of the front cover, 
or on the first page if there is no front cover. Transmittal documents, 
including those that are unclassified (Sec. 159a.35(g)), also shall bear 
these additional warning notices, when applicable. In addition, 
abbreviated forms of the notices set forth in Sec. 159a.35(a), (b), and 
(c) shall be included in portion markings, as applicable. Further, the 
warning notice in paragraph (d) of this section, in its short form, 
shall be included at least once on interior pages, as applicable.
    (2) When display of warning notices on other materials is not 
possible, their applicability to the information shall be included in 
the written notification of the assigned classification.
    (b) Restricted Data. Classified documents or material containing 
Restricted Data as defined in the Atomic Energy Act of 1954, as amended 
shall be marked as follows:

                             RESTRICTED DATA

    This material contains Restricted Data as defined in the Atomic 
Energy Act of 1954. Unauthorized disclosure subject to administrative 
and criminal sanctions.

    (c) Formerly Restricted Data. Classified documents or material 
containing Formerly Restricted Data, as defined in section 142.d, Atomic 
Energy Act of 1954, as amended, but no Restricted Data, shall be marked 
as follows:

                        FORMERLY RESTRICTED DATA

    Unauthorized disclosure subject to administrative and criminal 
sanctions. Handle as Restricted Data in foreign dissemination. Section 
144.b, Atomic Energy Act, 1954.

    (d) Intelligence Sources or Methods Information. (1) Documents that 
contain information relating to intelligence sources or methods shall 
include the following marking unless otherwise proscribed by DoD 
Instruction 5230.22:

        WARNING NOTICE--Intelligence Sources or Methods Involved

    (2) Existing stamps or preprinted labels containing the caveat 
``Warning Notice--Intelligence Sources and Methods Involved'' may be 
used on documents created on or after the effective date of this part 
until replacement is required. Any replacement or additional stamps or 
labels purchased after the effective date of this part shall conform to 
the wording of paragraph (d)(1) of this section.
    (e) COMSEC Material. Before release to contractors, COMSEC documents 
will indicate on the title page, or first page if no title page exists, 
the following notation:

    COMSEC Material--Access by Contractor Personnel Restricted to U.S. 
Citizens Holding Final Government Clearance.


This notation shall be placed on COMSEC documents or material when 
originated and when release to contractors can be anticipated. Other 
COMSEC documents or material shall be marked in accordance with National 
COMSEC Instruction (NACSI) 4003. Foreign dissemination of COMSEC 
information is governed by NCSC Policy Directive 6.
    (f) Dissemination and Reproduction Notice. Classified information 
that the DoD originator has determined to be subject to special 
dissemination or reproduction limitations as outlined in Sec. 159a.54(1) 
shall include, as applicable, a statement or statements on its cover 
sheet, first page, or in the text, substantially as follows:

[[Page 826]]

    Reproduction requires approval of originator or higher DoD 
authority.
    Further dissemination only as directed by (insert appropriate office 
or official) or higher DoD authority.

    (g) Other Notations. Other notations of restrictions on 
reproduction, dissemination or extraction of classified information may 
be used as authorized by DoD Directive C-5200.5, DoD Instruction 
5230.22, DoD Directive 5210.2 \1\\4\, DoD Directive 5100.55 \1\\5\, DoD 
Directive 5200.30, Joint Army-Navy-Air Force Publication 119, DoD 
Directive 5230.24, and NACSI 4003.
---------------------------------------------------------------------------

    \1\\4\ See footnote 1 to Sec. 159a.3.
    \1\\5\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------



Sec. 159a.36  Remarking old material.

    (a) General. (1) Documents and material classified under E.O. 12065 
and predecessor E.O.s that are marked for automatic downgrading or 
automatic declassification on a specific date or event shall be 
downgraded and declassified pursuant to such markings. Declassification 
instructions on such documents or material need not be restated to 
conform with Sec. 159a.32(c). (See also Sec. 159a.34(a)). Information 
extracted from these documents or material for use in new documents or 
material shall be marked for declassification on the date specified in 
accordance with Sec. 159a.31(d)(2).
    (2) Documents and material classified under DoD C-5105.21-M-1 \16\ 
and predecessor E.O.s that are not marked for automatic downgrading or 
automatic declassification on a specific date or event shall not be 
downgraded or declassified without authorization of the originator. 
Declassification instructions on such documents or material need not be 
restated to conform with Sec. 159a.32(a). Information extracted from 
these documents or material for use in new documents or material shall 
be marked for declassification upon the determination of the originator, 
that is, the ``Declassify on'' line shall be completed with the notation 
``Originating Agency's Determination Required'' or ``OADR'' in 
accordance with Sec. 159a.31(d)(2).
---------------------------------------------------------------------------

    \16\ See footnote 13 to Sec. 159a.33(j).
---------------------------------------------------------------------------

    (b) Earlier Declassification and Extension of Classification. 
Nothing in this section shall be construed to preclude declassification 
under subpart D of this part or subsequent extension of classification 
under Sec. 159a.16(c).



                   Subpart F--Safekeeping and Storage



Sec. 159a.37  Storage and storage equipment.

    (a) General Policy. Classified information shall be stored only 
under conditions adequate to prevent unauthorized persons from gaining 
access. The requirements specified in this part represent the minimum 
acceptable security standards. DoD policy concerning the use of force 
for the protection of property or information is specified in DoD 
Directive 5210.56 \17\
---------------------------------------------------------------------------

    \17\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (b) Standards for Storage Equipment. The GSA establishes and 
publishes minimum standards, specifications, and supply schedules for 
containers, vault doors, alarm systems, and associated security devices 
suitable for the storage and protection of classified information. Heads 
of DoD Components may establish additional controls to prevent 
unauthorized access. Security filing cabinets conforming to Federal 
specifications bear a Test Certification Label on the locking drawer, 
attesting to the security capabilities of the container and lock. (On 
some older cabinets the label was affixed on the inside of the locked 
drawer compartment). Cabinets manufactured after February 1962 indicate 
``General Services Administration Approved Security Container'' on the 
outside of the top drawer.
    (c) Storage of Classified Information. Classified information that 
is not under the personal control and observation of an authorized 
person, will be guarded or stored in a locked security container as 
prescribed in the following:
    (1) Top Secret. Top Secret information shall be stored in:
    (i) A safe-type steel file container having a built-in, three-
position, dial-type combination lock approved by the GSA or a Class A 
vault or vault type

[[Page 827]]

room that meets the standards established by the head of the DoD 
Component concerned. When located in buildings, structural enclosures, 
or other areas not under U.S. Government control, the storage container, 
vault, or vault-type room must be protected by an alarm system or 
guarded during nonoperating hours.
    (ii) An alarmed area, provided such facilities are adjudged by the 
local responsible official to afford protection equal to or better than 
that prescribed in paragraph (c)(1) (i) of this section. When an alarmed 
area is used for the storage of Top Secret material, the physical 
barrier must be adequate to prevent:
    (A) Surreptitious removal of the material, and
    (B) Observation that would result in the compromise of the material. 
The physical barrier must be such that forcible attack will give 
evidence of attempted entry into the area. The alarm system must provide 
immediate notice to a security force of attempted entry. Under field 
conditions, the field commander will prescribe the measures deemed 
adequate to meet the storage standards contained in paragraphs (c)(1)(i) 
and (ii) of this section.
    (2) Secret and Confidential. Secret and Confidential information 
shall be stored in the manner prescribed for Top Secret; or in a Class B 
vault, or a vault-type room, strong room, or secure storage room that 
meets the standards prescribed by the head of the DoD Component; or, 
until phased out, in a steel filing cabinet having a built-in, three-
position, dial type combination lock; or, as a last resort, an existing 
steel filing cabinet equipped with a steel lock bar, provided it is 
secured by a GSA-approved changeable combination padlock. In this latter 
instance, the keeper or keepers and staples must be secured to the 
cabinet by welding, rivets, or peened bolts and DoD Components must 
prescribe supplementary controls to prevent unauthorized access.
    (3) Specialized Security Equipment--(i) Field Safe and One-drawer 
Container. One-drawer field safes, and GSA approved security containers 
are used primarily for storage of classified information in the field 
and in transportable assemblages. Such containers must be securely 
fastened or guarded to prevent their theft.
    (ii) Map and Plan File. A GSA-approved map and plan file has been 
developed for storage of odd-sized items such as computer cards, maps, 
and charts.
    (4) Other Storage Requirements. Storage areas for bulky material 
containing classified information, other than Top Secret, shall have 
access openings secured by GSA-approved changeable combination padlocks 
(Federal specification FF-P110 series) or key-operated padlocks with 
high security cylinders (exposed shackle, military specification P-43951 
series, or shrouded shackle, military specification P-43607 series).
    (i) When combination padlocks are used, the provisions of paragraph 
(e) of this section apply.
    (ii) When key-operated high security padlocks are used, keys shall 
be controlled as classified information with classification equal to 
that of the information being protected and:
    (A) A key and lock custodian shall be appointed to ensure proper 
custody and handling of keys and locks;
    (B) A key and lock control register shall be maintained to identify 
keys for each lock and their current location and custody;
    (C) Keys and locks shall be audited each month;
    (D) Keys shall be inventoried with each change of custodian;
    (E) Keys shall not be removed from the premises;
    (F) Keys and spare locks shall be protected in a secure container;
    (G) Locks shall be changed or rotated at least annually, and shall 
be replaced upon loss or compromise of their keys; and
    (H) Master keying is prohibited.
    (d) Procurement and Phase-In of New Storage Equipment--(1) 
Preliminary Survey. DoD activities shall not procure new storage 
equipment until:
    (i) A current survey has been made of on-hand security storage 
equipment and classified records; and
    (ii) Based upon the survey, it has been determined that it is not 
feasible to use available equipment or to retire, return, declassify or 
destroy enough

[[Page 828]]

records on hand to make the needed security storage space available.
    (2) Purchase of New Storage Equipment. New security storage 
equipment shall be procured from those items listed on the GSA Federal 
Supply Schedule. Exceptions may be made by heads of DoD Components, with 
notification to the DUSD(P).
    (3) Nothing in this subpart shall be construed to modify existing 
Federal Supply Class Management Assignments made under DoD Directive 
5030.47.\18\
---------------------------------------------------------------------------

    \18\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (e) Designations and Combinations--(1) Numbering and Designating 
Storage Facilities. There shall be no external mark as to the level of 
classified information authorized to be stored therein. For 
identification purposes each vault or container shall bear externally an 
assigned number or symbol.
    (2) Combinations to Containers--(i) Changing. Combinations to 
security containers shall be changed only by individuals having that 
responsibility and an appropriate security clearance. Combinations shall 
be changed:
    (A) When placed in use;
    (B) Whenever an individual knowing the combination no longer 
requires access;
    (C) When the combination has been subject to possible compromise;
    (D) At least annually; or
    (E) When taken out of service. Built-in combination locks shall be 
reset to the standard combination 50-25-50; combination padlocks shall 
be reset to the standard combination 10-20-30.
    (ii) Classifying Combinations. The combination of a vault or 
container used for the storage of classified information shall be 
assigned a security classification equal to the highest category of the 
classified information authorized to be stored therein.
    (iii) Recording Storage Facility Data. A record shall be maintained 
for each vault, secure room, or container used for storing classified 
information, showing location of the container, the names, home 
addresses, and home telephone numbers of the individuals having 
knowledge of the combination. Standard Form 700, ``Security Container 
Information'' shall be used for this purpose. (Use of this Standard Form 
is required when existing supplies of similar purpose forms are 
exhausted or by September 30, 1986, whichever occurs earlier).
    (iv) Dissemination. Access to the combination of a vault or 
container used for the storage of classified information shall be 
granted only to those individuals who are authorized access to the 
classified information stored therein.
    (3) Electrically Actuated Locks. Electricially actuated locks (for 
example, cypher and magnetic strip card locks) do not afford the 
required degree of protection of classified information and may not be 
used as a substitute for the locks prescribed in paragraph (c) of this 
section.
    (f) Repair of Damaged Security Containers. Neutralization of lock-
outs or repair of any damage that affects the integrity of a security 
container approved for storage of classified information shall be 
accomplished only by authorized persons who are cleared or continuously 
escorted while so engaged.
    (1) A GSA-approved security container is considered to have been 
restored to its original state of security integrity if:
    (i) All damaged or altered parts (for example, locking drawer, and 
drawer head) are replaced; or
    (ii) When a container has been drilled immediately adjacent to or 
through the dial ring to neutralize a lock-out, the replacement lock is 
equal to the original equipment, and the drilled hole is repaired with a 
tapered, hardened tool-steel pin, or a steel dowel, drill bit, or 
bearing with a diameter slightly larger than the hole and of such length 
that when driven into the hole there shall remain at each end of the rod 
a shallow recess not less than \1/8\ inch nor more than \3/16\ inch deep 
to permit the acceptance of substantial welds, and the rod is welded 
both on the inside and outside surfaces. The outside of the drawer head 
shall then be puttied, sanded, and repainted in such a way that no 
visible evidence of the hole or its repair remains on the outer surface 
after replacement of the damaged parts (for example, new lock).

[[Page 829]]

    (2) GSA-approved containers that have been drilled in a location or 
repaired in a manner other than as described in paragraph (f)(1) of this 
section, will not be considered to have been restored to their original 
state of security integrity. The Test Certification Label on the inside 
of the locking drawer and the ``General Services Administration Approved 
Security Container'' label, if any, on the outside of the top drawer 
shall be removed from such containers.
    (3) If damage to a GSA-approved security container is repaired with 
welds, rivets, or bolts that cannot be removed and replaced without 
leaving evidence of entry, the cabinet is limited thereafter to the 
storage of Secret and Confidential material.
    (4) If the damage is repaired using methods other than those 
permitted in paragraphs (f) (1) and (3) of this section, use of the 
container will be limited to unclassified material and a notice to this 
effect will be permanently marked on the front of the container.



Sec. 159a.38  Custodial precautions.

    (a) Responsibilities of Custodians. (1) Custodians of classified 
information shall be responsible for providing protection and 
accountability for such information at all times and for locking 
classified information in appropriate security equipment whenever it is 
not in use or under direct supervision of authorized persons. Custodians 
shall follow procedures that ensure that unauthorized persons do not 
gain access to classified information.
    (2) Only the head of a DoD Component, or single designee at the 
headquarters and major command levels, may authorize removal of 
classified information from designated working areas in off-duty hours, 
for work at home or otherwise, provided that a GSA-approved security 
container is furnished and appropriate regulations otherwise provide for 
the maximum protection possible under the circumstances. (See also 
Sec. 159a.55.) Any such arrangements approved before the effective date 
of this part shall be reevaluated and, if continued approval is 
warranted, compliance with this paragraph is necessary.
    (b) Care During Working Hours. DoD personnel shall take precaution 
to prevent unauthorized access to classified information.
    (1) Classified documents removed from storage shall be kept under 
constant surveillance and face down or covered when not in use. Cover 
sheets shall be Standard Forms 703, 704, and 705 for, respectively, Top 
Secret, Secret, and Confidential documents. (Use of these Standard Forms 
is required when existing supplies of similar purpose forms are 
exhausted or by September 30, 1986, whichever occurs earlier).
    (2) Preliminary drafts, carbon sheets, plates, stencils, 
stenographic notes, worksheets, typewriter ribbons, and other items 
containing classified information shall be either destroyed immediately 
after they have served their purpose; or shall be given the same 
classification and secure handling as the classified information they 
contain.
    (3) Destruction of typewriter ribbons from which classified 
information can be obtained shall be accomplished in the manner 
prescribed for classified working papers of the same classification. 
After the upper and lower sections have been cycled through and 
overprinted five times in all ribbon or typing positions, fabric ribbons 
may be treated as unclassified regardless of their classified use 
thereafter. Carbon and plastic typewriter ribbons and carbon paper that 
have been used in the production of classified information shall be 
destroyed in the manner prescribed for working papers of the same 
classification after initial usage. However, any ribbon in a typewriter 
that uses technology which enables the ribbon to be struck several times 
in the same area before it moves to the next position may be treated as 
unclassified.
    (c) End-of-Day Security Checks. Heads of activities that process or 
store classified information shall establish a system of security checks 
at the close of each working day to ensure that the area is secure; 
Standard Form 701, ``Activity Security Checklist'' shall be used to 
record such checks. An integral part of the security check system shall 
be the securing of all vaults, secure rooms, and containers used for the

[[Page 830]]

storage of classified material; Standard Form 702, ``Security Container 
Check Sheet'' shall be used to record such actions. In addition, 
Standard Forms 701 and 702 shall be annotated to reflect after-hours, 
weekend, and holiday activity. (Use of these Standard Forms is required 
when existing supplies of similar purpose forms are exhausted or by 
September 30, 1986, whichever occurs earlier).
    (d) Emergency Planning. (1) Plans shall be developed for the 
protection, removal, or destruction of classified material in case of 
fire, natural disaster, civil disturbance, terrorist activities, or 
enemy action. Such plans shall establish detailed procedures and 
responsibilities for the protection of classified material to ensure 
that the material does not come into the possession of unauthorized 
persons. These plans shall include the treatment of classified 
information located in foreign countries.
    (2) These emergency planning procedures do not apply to material 
related to COMSEC. Planning for the emergency protection including 
emergency destruction under no-notice conditions of classified COMSEC 
material shall be developed in accordance with the requirements of NSA 
KAG I-D.
    (3) Emergency plans shall provide for the protection of classified 
material in a manner that will minimize the risk of injury or loss of 
life to personnel. In the case of fire or natural disaster, the 
immediate placement of authorized personnel around the affected area, 
preinstructed and trained to prevent the removal of classified material 
by unauthorized personnel, is an acceptable means of protecting 
classified material and reducing casualty risk. Such plans shall provide 
for emergency destruction to preclude capture of classified material 
when determined to be required. This determination shall be based on an 
overall commonsense evaluation of the following factors:
    (i) Level and sensitivity of classified material held by the 
activity;
    (ii) Proximity of land-based commands to hostile or potentially 
hostile forces or to communist-controlled countries;
    (iii) Flight schedules or ship deployments in the proximity of 
hostile or potentially hostile forces or near communist-controlled 
countries;
    (iv) Size and armament of land-based commands and ships;
    (v) Sensitivity of operational assignment; and
    (vi) Potential for aggressive action of hostile forces.
    (4) When preparing emergency destruction plans, consideration shall 
be given to the following:
    (i) Reduction of the amount of classified material held by a command 
as the initial step toward planning for emergency destruction;
    (ii) Storage of less frequently used classified material at more 
secure commands in the same geographical area (if available);
    (iii) Transfer of as much retained classified material to microforms 
as possible, thereby reducing the bulk that needs to be evacuated or 
destroyed;
    (iv) Emphasis on the priorities for destruction, designation of 
personnel responsible for destruction, and the designation of places and 
methods of destruction. Additionally, if any destruction site or any 
particular piece of destruction equipment is to be used by more than one 
activity or entity, the order or priority for use of the site or 
equipment must be clearly delineated;
    (v) Identification of the individual who is authorized to make the 
final determination when emergency destruction is to begin and the means 
by which this determination is to be communicated to all subordinate 
elements maintaining classified information;
    (vi) Authorization for the senior individual present in an assigned 
space containing classified material to deviate from established plans 
when circumstances warrant; and
    (vii) Emphasis on the importance of beginning destruction 
sufficiently early to preclude loss of material. The effect of premature 
destruction is considered inconsequential when measured against the 
possibility of compromise.
    (5) The emergency plan shall require that classified material 
holdings be assigned a priority for emergency evacuation or destruction. 
Priorities should be based upon the potential effect on national 
security should such holdings

[[Page 831]]

fall into hostile hands, in accordance with the following general 
guidelines:
    (i) Priority One. Exceptionally grave damage (Top Secret material);
    (ii) Priority Two. Serious damage (Secret material); and
    (iii) Priority Three. Damage (Confidential material).
    (6) If, as determined by appropriate threat analysis, Priority One 
material cannot otherwise be afforded a reasonable degree of protection 
from hostile elements in a no-notice emergency situation, provisions 
shall be made for installation of Anticompromise Emergency Destruct 
(ACED) equipment to ensure timely initiation and positive destruction of 
such material a in accordance with the following standard: 
``With due regard for personnel and structural safety, the ACED system 
shall reach a stage in destruction sequences at which positive 
destruction is irreversible within 60 minutes at shore installations, 30 
minutes in ships, and 3 minutes in aircraft following activation of the 
ACED system.'' b
---------------------------------------------------------------------------

    \a\ Technological limitations, particularly as to personnel and 
structural safety, place constraints on the amount of material that can 
be accommodated in buildings, ships, and aircraft by current ACED 
systems; therefore, only Priority One material reasonably can be so 
protected at this time. Nevertheless, after processing Priority One 
material in an emergency situation involving possible loss to hostile 
forces, it is imperative that Priority Two material and then Priority 
Three material be destroyed insofar as is possible by whatever means 
available.
    \b\ The time frames indicated above are those for the initiation of 
irreversible destruction, not necessarily for the completion of such 
destruction.
---------------------------------------------------------------------------

    (7) An ACED requirement is presumed to exist and provisions shall be 
made for an ACED system to protect Priority One material in the 
following environments:
    (i) Shore-based activities located in or within 50 miles of 
potentially hostile countries, or located within or adjacent to 
countries with unstable governments;
    (ii) Reconnaissance aircraft, both manned and unmanned, that operate 
within JCS-designated reconnaissance reporting areas (see Memorandum by 
the Secretary, Joint Chiefs of Staff (SM) 701-76, Volume II, ``Peacetime 
Reconnaissance and Certain Sensitive Operations''; c
---------------------------------------------------------------------------

    \c\ SM 701-76 is available on a strict need-to-know basis from the 
Chief, Documents Division, Joint Secretariat, OJCS.
---------------------------------------------------------------------------

    (iii) Naval surface noncombatant vessels operating in hostile areas 
when not accompanied by a combatant vessel;
    (iv) Naval subsurface vessels operating in hostile areas; and
    (v) U.S. Navy Special Project ships (Military Sealift Command-
operated) operating in hostile areas.
    (8) Except in the most extraordinary circumstances, ACED is not 
applicable to commands and activities located within the United States. 
Should there be reason to believe that an ACED requirement exists in 
environments other than in those listed in paragraph (d)(7) of this 
section, a threat and vulnerability study should be prepared and 
submitted to the head of the DoD Component concerned or his designee for 
approval. The threat and vulnerability study should include, at a 
minimum, the following data, classified if appropriate:
    (i) Volume and type of Priority One material held by the activity, 
that is, paper products, microforms, magnetic tape, and circuit boards.
    (ii) A statement certifying that the amount of Priority One material 
held by the activity has been reduced to the lowest possible level;
    (iii) An estimate of the time, beyond the time frames cited above, 
required to initiate irreversible destruction of Priority One material 
held by the activity, and the methods by which destruction of that 
material would be attempted in the absence of an ACED system;
    (iv) Size and composition of the activity;
    (v) Location of the activity and the degree of control it, or other 
United States authority, exercises over security; and
    (vi) Proximity to potentially hostile forces and potential for 
aggressive action by such forces.
    (9) When a requirement is believed to exist for ACED equipment not 
in the GSA or DoD inventories, the potential requirement shall be 
submitted to the

[[Page 832]]

DUSD(P) for validation in accordance with subsection V. B. of DoD 
Directive 3224.3 \19\,d.
---------------------------------------------------------------------------

    \19\ See footnote 1 to Sec. 159a.3.
    d Information on ACED systems may be obtained from the 
Office of the Chief of Naval Operations (OP-09N), Navy Department, 
Washington, DC 20350.
---------------------------------------------------------------------------

    (10) In determining the method of destruction of other than Priority 
One material, any method specified for routine destruction or any other 
means that will ensure positive destruction of the material may be used. 
Ideally, any destruction method should provide for early attainment of a 
point at which the destruction process is irreversible. Additionally, 
classified material may be jettisoned at sea to prevent its easy 
capture. It should be recognized that such disposal may not prevent 
recovery of the material. Where none of the methods previously mentioned 
can be employed, the use of other means, such as dousing the classified 
material with a flammable liquid and igniting it, or putting to use the 
facility garbage grinders, sewage treatment plants, and boilers should 
be considered.
    (11) Under emergency destruction conditions, destruction equipment 
may be operated at maximum capacity and without regard to pollution, 
preventive maintenance, and other constraints that might otherwise be 
observed.
    (12) Commands and activities that are required to maintain an ACED 
system pursuant to paragraph (d)(7) of this section, shall conduct 
drills periodically to ensure that responsible personnel are familiar 
with the emergency plan. Such drills should be used to evaluate the 
anticipated effectiveness of the plan and the prescribed equipment and 
should be the basis for improvements in planning and equipment use. 
Actual destruction should not be initiated during drills.
    (e) Telecommunications Conversations. Classified information shall 
not be discussed in telephone conversations except as authorized over 
approved secure communications circuits, that is, cryptographically 
protected circuits or protected distribution systems installed in 
accordance with National COMSEC Instruction 4009.
    (f) Security of Meetings and Conferences. Security requirements and 
procedures governing disclosure of classified information at 
conferences, symposia, conventions, and similar meetings, and those 
governing the sponsorship and attendance of U.S. and foreign personnel 
at such meetings, are set forth in DoD Directive 5200.12\20\, DoD 
Instruction 5230.20\21\, DoD 5220.22-R, and DoD 5220.22-M.
---------------------------------------------------------------------------

    \20\ See footnote 1 to Sec. 159a.3.
    \21\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (g) Safeguarding of U.S. Classified Information Located in Foreign 
Countries. Except for classified information that has been authorized 
for release to a foreign government or international organization 
pursuant to DoD Directive 5230.11\22\, and is under the security control 
of such government or organization, the retention of U.S. classified 
material in foreign countries may be authorized only when that material 
is necessary to satisfy specific U.S. Government requirements. This 
includes classified material temporarily transferred into a foreign 
country via U.S. Government personnel authorized to escort or handcarry 
such material pursuant to Sec. 159a.59, as applicable. Whether 
permanently or temporarily retained, the classified materials shall be 
stored under U.S. Government control as follows:
---------------------------------------------------------------------------

    \22\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (1) At a U.S. military installation, or a location where the United 
States enjoys extraterritorial status, such as an embassy or consulate.
    (2) At a U.S. Government activity located in a building used 
exclusively by U.S. Government tenants, provided the building is under 
24-hour control by U.S. Government personnel.
    (3) At a U.S. Government activity located in a building not used 
exclusively by U.S. Government tenants nor under host government 
control, provided the classified material is stored in security 
containers approved by the GSA and is placed under 24-hour control by 
U.S. Government personnel.
    (4) At a U.S. Government activity located in a building not used 
exclusively by U.S. Government tenants but which is under host 
government control, provided the classified material is stored in GSA-
approved security containers which are further secured in a locked

[[Page 833]]

room or area to which only U.S. personnel have access.
    (5) When host government and U.S. personnel are co-located, U.S. 
classified material that has not been authorized for release to the host 
government pursuant to DoD Directive 5230.11, shall, to the extent 
possible, be segregated from releasable classified material to 
facilitate physical control and prevent inadvertent compromise. However, 
U.S. classified material that is releasable to the host country need not 
be subject to the 24-hour U.S. control requirement provided the host 
government exercises its own control measures over the pertinent areas 
or containers during non-duty hours.
    (6) Foreign nationals shall be escorted while in areas where 
nonreleasable U.S. classified material is handled or stored. However, 
when required by operational necessity, foreign nationals may be 
permitted, during duty hours, unescorted entry to such areas provided 
the nonreleasable information is properly stored or is under the direct 
personal supervision and control of cleared U.S. personnel who can 
prevent unauthorized access.



Sec. 159a.39  Activity entry and exit inspection program.

    (a) Policy. (1) Commanders and heads of activities shall establish 
and maintain an inspection program to deter and detect unauthorized 
introduction or removal of classified material from DoD owned or leased 
installations and facilities. This program does not replace existing 
programs for facility and installation security and law enforcement 
inspection requirements.
    (2) The inspection program shall be implemented in a manner which 
does not interfere unduly with the performance of assigned missions.
    (3) The inspection program shall be implemented in a manner which 
does not significantly disrupt the ingress and egress of persons who are 
employees of, or visitors to, defense installations and facilities.
    (4) Inspections carried out under this program shall be limited to 
the extent feasible to areas where classified work is being performed, 
and cover only persons employed within, or visiting, such areas.
    (5) Inspections carried out under this program shall be performed at 
a sufficient frequency to provide a credible deterrent to those who 
would be inclined to remove classified materials without authority from 
the installation or facility in question.
    (6) The method and frequency of such inspections at a given 
installation or facility is at the discretion of the commander or head 
of the installation or facility, or other designated official. Such 
inspections shall conform to the procedures set forth in the following:
    (i) Inspection Frequency. (A) Inspections may be aperiodic, that is, 
at irregular intervals.
    (B) Inspections may be accomplished at one or more designated entry/
exit points; they need not be carried out at all entry/exit points at 
the same time.
    (C) Inspections may be done on a random basis using any standard 
which may be appropriate, for example, every third person; every tenth 
person; every hundredth person, at the entry/exit point(s) designated.
    (D) Inspections at a particular entry/exit point(s) may be limited 
as appropriate to various periods of time, for example, one week, one 
day, or one hour.
    (E) Inspections shall be conducted at all entry/exit points after 
normal duty hours, including weekends and holidays, on a continuous 
basis, if practicable.
    (b) Inspection Procedures and Identification. (1) Inspections shall 
be limited to that which is necessary to determine whether classified 
material is contained in briefcases, shoulder or handbags, luggage, 
athletic bags, packages, or other similar containers being removed from 
or taken into the premises. Inspections shall not be done of wallets, 
change purses, clothing, cosmetic cases, or other objects of an 
unusually personal nature.
    (2) DoD Components shall provide employees who have a legitimate 
need to remove classified material from the installation or activity 
with written or printed authorizations to pass through designated entry/
exit points. (See Sec. 159a.59(f)) This may include:
    (i) The authorization statements prescribed in Sec. 159a.59.

[[Page 834]]

    (ii) If authorized in Component instructions, wallet-size cards 
which describe in general terms the purpose(s) for authorizing the 
employee to remove classified material from the facility (for example, 
use at meetings or transmission to authorized recipients).
    (3) Inspectors are to ensure that personnel are not removing 
classified material without authorization. Where inspectors determine 
that individuals do not appear to have appropriate authorization to 
remove classified material, they shall request such individual to obtain 
appropriate authorization before exiting the premises. If, due to the 
circumstances, this is not feasible, the inspector should attempt to 
verify by telephone the authority of the individual in question to 
remove the classified material with the employing office. When such 
verification cannot be obtained, and if removal cannot be prevented, the 
inspector shall advise the employing office and appropriate security 
office as soon as feasible that classified material was removed by the 
named individual at a particular time and without apparent 
authorization.
    (4) If the employing office determines that classified material was 
removed by one of its employees without authority, it shall request an 
investigation of the circumstances of the removal by appropriate 
investigative authorities. Where such investigation confirms a violation 
of security procedures, other than espionage or deliberate compromise, 
for which Sec. 159a.50 applies, appropriate administrative, 
disciplinary, or legal action shall be taken.



             Subpart G--Compromise of Classified Information



Sec. 159a.41  Policy.

    Compromise of classified information presents a threat to the 
national security. Once a compromise is known to have occurred, the 
seriousness of damage to U.S. interests must be determined and 
appropriate measures taken to negate or minimize the adverse effect of 
such compromise. When possible, action also should be taken to regain 
custody of the documents or material that were compromised. In all 
cases, however, appropriate action must be taken to identify the source 
and reason for the compromise and remedial action taken to ensure 
further compromises do not occur. The provisions of DoD Instruction 
5240.4 \2\\3\ and DoD Directive 5210.50 \2\\4\ apply to compromises 
covered by this subpart.
---------------------------------------------------------------------------

    \2\\3\ See footnote 1 to Sec. 159a.3.
    \2\\4\ See footnote 1 to Sec. 159a.3.
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Sec. 159a.42  Cryptographic and sensitive compartmented information.

    (a) The procedures for handling compromises of cryptographic 
information are set forth in NACSI 4006 and implementing instructions.
    (b) The procedures for handling compromises of SCI information are 
set forth in DoD TS-5105.21-M-2 \2\\5\ and DoD C-5105.21-M-1 \2\\6\.
---------------------------------------------------------------------------

    \2\\5\ See footnote 13 to Sec. 159a.33(j).
    \2\\6\ See footnote 13 to Sec. 159a.33(j).
---------------------------------------------------------------------------



Sec. 159a.43  Responsibility of discoverer.

    (a) Any person who has knowledge of the loss or possible compromise 
of classified information shall immediately report such fact to the 
security manager of the person's activity (see Sec. 159a.93(e)) or to 
the commanding officer or head of the activity in the security manager's 
absence.
    (b) Any person who discovers classified information out of proper 
control shall take custody of such information and safeguard it in an 
appropriate manner, and shall notify immediately an appropriate security 
authority.



Sec. 159a.44  Preliminary inquiry.

    The immediate commander, supervisor, security manager, or other 
authority shall initiate a preliminary inquiry to determine the 
circumstances surrounding the loss or possible compromise of classified 
information. The preliminary inquiry shall establish one of the 
following:
    (a) That a loss or compromise of classified information did not 
occur;
    (b) That a loss or compromise of classified information did occur 
but the compromise reasonably could not be expected to cause damage to 
the national security. If, in such instances, the official finds no 
indication of significant security weakness, the report

[[Page 835]]

of preliminary inquiry will be sufficient to resolve the incident and, 
when appropriate, support the administrative sanctions under 
Sec. 159a.98; or
    (c) That the loss or compromise of classified information did occur 
and that the compromise reasonably could be expected to cause damage to 
the national security or that the probability of damage to the national 
security cannot be discounted. Upon this determination, the responsible 
official shall:
    (1) Report the circumstances of the compromise to an appropriate 
authority as specified in DoD Component instructions;
    (2) If the responsible official is the originator, take the action 
prescribed in Sec. 159a.47; and
    (3) If the responsible official is not the originator, notify the 
originator of the known details of the compromise, including 
identification of the classified information. If the originator is 
unknown, notification will be sent to the office specified in DoD 
Component instructions.



Sec. 159a.45  Investigation.

    If it is determined that further investigation is warranted, such 
investigation will include the following:
    (a) Identification of the source, date, and circumstances of the 
compromise.
    (b) Complete description and classification of each item of 
classified information compromised;
    (c) A thorough search for the classified information;
    (d) Identification of any person or procedure responsible for the 
compromise. Any person so identified shall be apprised of the nature and 
circumstances of the compromise and be provided an opportunity to reply 
to the violation charged. If such person does not choose to make a 
statement, this fact shall be included in the report of investigation;
    (e) An analysis and statement of the known or probable damage to the 
national security that has resulted or may result (See Sec. 159a.15(k)), 
and the cause of the loss or compromise; or a statement that compromise 
did not occur or that there is minimal risk of damage to the national 
security;
    (f) An assessment of the possible advantage to foreign powers 
resulting from the compromise; and
    (g) A compilation of the data in paragraphs (a) through (f) of this 
section, in a report to the authority ordering the investigation to 
include an assessment of appropriate corrective, administrative, 
disciplinary, or legal actions. (Also see Sec. 159a.100).



Sec. 159a.46  Responsibility of authority ordering investigation.

    (a) The report of investigation shall be reviewed to ensure 
compliance with this part and instructions issued by DoD Components.
    (b) The recommendations contained in the report of investigation 
shall be reviewed to determine sufficiency of remedial, administrative, 
disciplinary, or legal action proposed and, if adequate, the report of 
investigation shall be forwarded with recommendations through 
supervisory channels (See Sec. 159a.98 and Sec. 159a.99).
    (c) Whenever an action is contemplated against any person believed 
responsible for the compromise of classified information, damage 
assessments shall be coordinated with the legal counsel of the DoD 
Component where the individual responsible is assigned or employed. 
Whenever a violation of criminal law appears to have occurred and a 
criminal prosecution is contemplated, the DoD Component responsible for 
the damage assessment shall apprise the General Counsel, Department of 
Defense. See Sec. 159a.101.



Sec. 159a.47  Responsibility of originator.

    The originator or an official higher in the originator's supervisory 
chain shall, upon receipt of notification of loss or probable compromise 
of classified information, take action as prescribed in Sec. 159a.15(k).



Sec. 159a.48  System of control of damage assessments.

    Each DoD Component shall establish a system of controls and internal 
procedures to ensure that damage assessments are conducted when required 
and that records are maintained in a manner that facilitates their 
retrieval and use within the Component.

[[Page 836]]



Sec. 159a.49  Compromises involving more than one agency.

    (a) Whenever a compromise involves the classified information or 
interests of more than one DoD Component or other agency, each such 
activity undertaking a damage assessment shall advise the others of the 
circumstances and findings that affect their information and interests. 
Whenever a damage assessment incorporating the product of two or more 
DoD Components or other agencies is needed, the affected activities 
shall agree upon the assignment of responsibility for the assessment.
    (b) Whenever a compromise of U.S. classified information is the 
result of actions taken by foreign nationals, by foreign government 
officials, or by U.S. nationals employed by international organizations, 
the activity performing the damage assessment shall ensure, through 
appropriate intergovernmental liaison channels, that information 
pertinent to the assessment is obtained. Whenever more than one activity 
is responsible for the assessment, those activities shall coordinate the 
request prior to transmittal through appropriate channels.



Sec. 159a.50  Espionage and deliberate compromise.

    Cases of espionage and deliberate unauthorized disclosure of 
classified information to the public shall be reported in accordance 
with DoD Instruction 5240.4 and DoD Directive 5210.50 and implementing 
issuances.



Sec. 159a.51  Unauthorized absentees.

    When an individual who has had access to classified information is 
on unauthorized absence, an inquiry as appropriate under the 
circumstances, to include consideration of the length of absence and the 
degree of sensitivity of the classified information involved, shall be 
conducted to detect if there are any indications of activities, 
behavior, or associations that may be inimical to the interest of 
national security. When such indications are detected, a report shall be 
made to the DoD Component counterintelligence organization.



          Subpart H--Access, Dissemination, and Accountability



Sec. 159a.53  Access.

    (a) Policy. (1) Except as otherwise provided for in paragraph (c) of 
this section, no person may have access to classified information unless 
that person has been determined to be trustworthy and unless access is 
essential to the accomplishment of lawful and authorized Government 
purposes, that is, the person has the appropriate security clearance and 
a need-to-know. Further, cleared personnel may not have access until 
they have been given an initial security briefing (see Sec. 159a.70). 
Procedures shall be established by the head of each DoD Component to 
prevent unnecessary access to classified information. There shall be a 
demonstrable need for access to classified information before a request 
for a personnel security clearance can be initiated. The number of 
people cleared and granted access to classified information shall be 
maintained at the minimum number that is consistent with operational 
requirements and needs. No one has a right to have access to classified 
information solely by virtue of rank or position. The final 
responsibility for determining whether an individual's official duties 
require possession of or access to any element or item of classified 
information, and whether the individual has been granted the appropriate 
security clearance by proper authority, rests upon the individual who 
has authorized possession, knowledge, or control of the information and 
not upon the prospective recipient. These principles are equally 
applicable if the prospective recipient is a DoD Component, including 
commands and activities, other Federal agencies, DoD contractors, 
foreign governments, and others.
    (2) Because of the extreme importance to the national security of 
Top Secret information and information controlled within approved 
Special Access Programs, employees shall not be permitted to work alone 
in areas where such information is in use or stored and accessible by 
those employees. This general policy is an extra safeguarding measure 
for the nation's most vital classified information and it is

[[Page 837]]

not intended to cast doubt on the integrity of DoD employees. The policy 
does not apply in those situations where one employee with access is 
left alone for brief periods during normal duty hours. When compelling 
operational requirements indicate the need, DoD Component heads may 
waive this requirement in specific, limited cases. This waiver authority 
may be delegated to the senior official (Sec. 159a.93 (b) and (c)) of 
the DoD Component who may redelegate the authority but only if so 
authorized by the head of the DoD Component. (Any waiver should include 
provisions for periodically ensuring the health and welfare of 
individuals left alone in vaults or secure areas).
    (b) Access by Persons Outside the Executive Branch. Classified 
information may be made available to individuals or agencies outside the 
Executive Branch provided that such information is necessary for 
performance of a function from which the Government will derive a 
benefit or advantage, and that such release is not prohibited by the 
originating department or agency. Heads of DoD Components shall 
designate appropriate officials to determine, before the release of 
classified information, the propriety of such action in the interest of 
national security and assurance of the recipient's trustworthiness and 
need-to-know.
    (1) Congress. Access to classified information or material by 
Congress, its committees, members, and staff representatives shall be in 
accordance with DoD Directive 5400.4 \2\\7\. Any DoD employee testifying 
before a congressional committee in executive session in relation to a 
classified matter shall obtain the assurance of the committee that 
individuals present have a security clearance commensurate with the 
highest classification of the information that may be discussed. Members 
of Congress, by virtue of their elected positions, are not investigated 
or cleared by the Department of Defense.
---------------------------------------------------------------------------

    \2\\7\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (2) Government Printing Office (GPO). Documents and material of all 
classifications may be processed by the GPO, which protects the 
information in accordance with the DoD/GPO Security Agreement of 
February 20, 1981.
    (3) Representatives of the General Accounting Office (GAO). 
Representatives of the GAO may be granted access to classified 
information originated by and in possession of the Department of Defense 
when such information is relevant to the performance of the statutory 
responsibilities of that office, as set forth in DoD Directive 7650.1 
\2\\8\. Officials of the GAO, as designated in Appendix B to this part, 
are authorized to certify security clearances, and the basis therefor. 
Certifications will be made by these officials pursuant to arrangements 
with the DoD Component concerned. Personal recognition or presentation 
of official GAO credential cards are acceptable for identification 
purposes.
---------------------------------------------------------------------------

    \2\\8\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (4) Industrial, Educational, and Commercial Entities. (i) Bidders, 
contractors, grantees, educational, scientific or industrial 
organizations may have access to classified information only when such 
access is essential to a function that is necessary in the interest of 
the national security, and the recipients are cleared in accordance with 
DoD 5220.22-R.
    (ii) Contractor employees whose duties do not require access to 
classified information are not eligible for personnel security clearance 
and cannot be investigated under the DISP. In exceptional situations, 
when a military command is vulnerable to sabotage and its mission is of 
critical importance to national security, National Agency Checks may be 
conducted on such individuals with the approval of the DUSD(P).
    (5) Historical Researchers. Persons outside the Executive Branch who 
are engaged in historical research projects may be authorized access to 
classified information provided that an authorized official within the 
DoD Component with classification jurisdiction over the information:
    (i) Makes a written determination that such access is clearly 
consistent with the interests of national security in view of the 
intended use of the material to which access is granted by certifying 
that the requester has been

[[Page 838]]

found to be trustworthy pursuant to paragraph (a)(1) of this section;
    (ii) Limits such access to specific categories of information over 
which that DoD Component has classification jurisdiction and to any 
other category of information for which the researcher obtains the 
written consent of a DoD Component or non-DoD department or agency that 
has classification jurisdiction over information contained in or 
revealed by documents within the scope of the proposed historical 
research;
    (iii) Maintains custody of the classified material at a DoD 
installation or activity or authorizes access to documents in the 
custody of the NARA;
    (iv) Obtains the researcher's agreement to safeguard the information 
and to submit any notes and manuscript for review by all DoD Components 
or non-DoD departments or agencies with classification jurisdiction for 
a determination that no classified information is contained therein by 
execution of a statement entitled, ``Conditions Governing Access to 
Official Records for Historical Research Purposes''; and
    (v) Issues an authorization for access valid for not more than 2 
years from the date of issuance that may be renewed under regulations of 
the issuing DoD Component.
    (6) Former Presidential Appointees. Persons who previously occupied 
policy making positions to which they were appointed by the President 
may not remove classified information upon departure from office as all 
such material must remain under the security control of the U.S. 
Government. Such persons may be authorized access to classified 
information that they originated, received, reviewed, signed, or that 
was addressed to them while serving as such an appointee, provided that 
an authorized official within the DoD Component with classification 
jurisdiction for such information:
    (i) Makes a written determination that such access is clearly 
consistent with the interests of national security in view of the 
intended use of the material to which access is granted and by 
certifying that the requester has been found to be trustworthy pursuant 
to paragraph (a)(1) of this section;
    (ii) Limits such access to specific categories of information over 
which that DoD Component has classification jurisdiction and to any 
other category of information for which the former appointee obtains the 
written consent of a DoD Component or non-DoD department or agency that 
has classification jurisdiction over information contained in or 
revealed by documents with the scope of the proposed access;
    (iii) Retains custody of the classified material at a DoD 
installation or activity or authorizes access to documents in the 
custody of the National Archives and Records Service; and
    (iv) Obtains the former presidential appointee's agreement to 
safeguard the information and to submit any notes and manuscript for 
review by all DoD Components or non-DoD departments or agencies with 
classification jurisdiction for a determination that no classified 
information is contained therein.
    (7) Judicial Proceedings. DoD Directive 5405.2 \2\\9\ governs the 
release of classified information in litigation.
---------------------------------------------------------------------------

    \2\\9\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (c) Access by Foreign Nationals, Foreign Governments, and 
International Organizations. (1) Classified information may be released 
to foreign nationals, foreign governments, and international 
organizations only when authorized under the provisions of the National 
Disclosure Policy and DoD Directive 5230.11; and
    (2) Access to COMSEC information by foreign persons and activities 
shall be in accordance with policy issuances of the National 
Telecommunications and Information Systems Security Committee (NTISSC).
    (d) Other Situations. When necessary in the interests of national 
security, heads of DoD Components, or their single designee, may 
authorize access by persons outside the Federal government, other than 
those enumerated in paragraphs (b) and (c) of this section, to 
classified information upon determining that the recipient is 
trustworthy for the purpose of accomplishing a national security 
objective; and that the recipient can and will safeguard the information 
from unauthorized disclosure.

[[Page 839]]

    (e) Access Required by Other Executive Branch Investigative and Law 
Enforcement Agents. (1) Normally, investigative agents of other 
departments or agencies may obtain access to DoD information through 
established liaison or investigative channels.
    (2) When the urgency or delicacy of a Federal Bureau of 
Investigation (FBI), Drug Enforcement Administration (DEA), or Secret 
Service investigation precludes use of established liaison or 
investigative channels, FBI, DEA, or Secret Service agents may obtain 
access to DoD information as required. However, this information shall 
be protected as required by its classification. Before any public 
release of the information so obtained the approval of the head of the 
activity or higher authority shall be obtained.
    (f) Access by Visitors. Procedures shall be established to control 
access to classified information by visitors. (DoD Instruction 5230.20 
provides further guidance regarding foreign visitors.)
    (1) Except when a continuing, frequent working relationship is 
established, through which current security clearance and need-to-know 
are determined, DoD personnel visiting other activities of the 
Department of Defense, its contractors, and other agencies shall provide 
advance notification of the pending visit that establishes the visitor's 
security clearance and the purpose of the visit. Visit requests shall be 
signed by an official other than the visitor who is in a position to 
verify the visitor's security clearance.
    (2) Visit requests normally should include the following:
    (i) Full name, date and place of birth, social security number, and 
rank or grade of visitor;
    (ii) Security clearance of the visitor;
    (iii) Employing activity of the visitor;
    (iv) Name and address of activity to be visited;
    (v) Date and duration of proposed visit;
    (vi) Purpose of visit in sufficient detail to establish need-to-
know; and
    (vii) Names of persons to be contacted.
    (3) Visit requests may remain valid for not more than 1 year.



Sec. 159a.54  Dissemination.

    (a) Policy. DoD Components shall establish procedures consistent 
with this Regulation for the dissemination of classified material. The 
originating official or activity may prescribe specific restrictions on 
dissemination of classified information when necessary. (See 
Sec. 159a.35(f). Particular emphasis shall be placed on traditional 
need-to-know measures to aid in the strict control of classified 
information.)
    (b) Restraints on Special Access Requirements. Special requirements 
with respect to access, distribution, and protection of classified 
information shall require prior approval in accordance with subpart M of 
this part.
    (c) Information Originating in a Non-DoD Department or Agency. 
Except under rules established by the Secretary of Defense, or as 
provided by section 102 of the National Security Act, classified 
information originating in a department or agency other than Department 
of Defense shall not be disseminated outside the Department of Defense 
without the consent of the originating department or agency.
    (d) Foreign Intelligence Information. Dissemination of foreign 
intelligence information shall be in accordance with the provisions of 
DoD Instruction 5230.22 and DoD Directive C-5230.23 \3\\0\.
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    \3\\0\ See footnote 13 to Sec. 159a.33(j).
---------------------------------------------------------------------------

    (e) Restricted Data and Formerly Restricted Data. Information 
bearing the warning notices prescribed in Sec. 159a.35 (b) and (c) shall 
not be disseminated outside authorized channels without the consent of 
the originator. Access to and dissemination of Restricted Data by DoD 
personnel shall be subject to DoD Directive 5210.2.
    (f) NATO Information. Classified information originated by NATO 
shall be safeguarded in accordance with DoD Directive 5100.55.
    (g) COMSEC Information. COMSEC information shall be disseminated in 
accordance with NACSI 4005 and implementing instructions.
    (h) Dissemination of Top Secret Information. (1) Top Secret 
information, originated within the Department of

[[Page 840]]

Defense, may not be disseminated outside the Department of Defense 
without the consent of the originating DoD Component, or higher 
authority.
    (2) Top Secret information, whenever segregable from classified 
portions bearing lower classifications, shall be distributed separately.
    (3) Standing distribution requirements for Top Secret information 
and materials, such as distribution lists, shall be reviewed at least 
annually to verify the recipients' need-to-know.
    (i) Dissemination of Secret and Confidential Information. (1) Secret 
and Confidential information, originated within the Department of 
Defense, may be disseminated within the Executive Branch, unless 
prohibited by the originator. (See Sec. 159a.35(f)).
    (2) Standing distribution requirements for Secret and Confidential 
information and materials, such as distribution lists, shall be reviewed 
at least annually to verify the recipients' need-to-know.
    (j) Code Words, Nicknames, and Exercise Terms. The use of code 
words, nicknames, and exercise terms is subject to the provisions of 
subpart M and Appendix C.
    (k) Scientific and Technical Meetings. Use of classified information 
in scientific and technical meetings is subject to the provisions of DoD 
Directive 5200.12.
    (l) Limited Dissemination (LIMDIS). This section establishes limits 
on measures for the protection of information beyond those involving 
access to classified information per se, but not so stringent as to 
require the establishment of a Special Access Program. It prohibits use 
of terminology indicating enhancements to need-to-know, such as Special 
Need-to-Know (SNTK), MUST KNOW, Controlled Need-to-Know (CNTK), or other 
similar security upgrade designations and associated unique security 
requirements such as specialized nondisclosure statements. Limited 
dissemination controls are the only security enhancement short of a 
Special Access Program which may be employed for control over specific 
information for specified periods of time. In this context, these 
procedures may be initiated and continued on a showing that additional 
access controls are required in order to assure the security of the 
designated information. The decision to apply these procedures shall be 
made at the original classification authority level of command or 
supervision in accordance with the implementing information security 
instructions promulgated by the DoD Component. Except by agreement, such 
requirements shall not be imposed outside of the approving DoD 
Component. LIMDIS protective measures are restricted to one or more of 
the following:
    (1) Decentralized maintenance of disclosure listings, briefings 
concerning access limitations, and physical security restrictions 
limited to requirements such as placing the material in sealed envelopes 
within approved storage containers to avoid inadvertent disclosure and 
the commingling with other files;
    (2) Using unclassified nicknames (no code words may be assigned to 
LIMDIS information);
    (3) Marking the material as LIMDIS along with the assigned nickname;
    (4) Marking inner envelopes containing designated LIMDIS information 
with the notation: ``To be Opened Only By Personnel Authorized Access'';
    (5) Requiring electronically transmitted messages containing 
designated information to be marked with the uniform caveat LIMDIS; and
    (6) Prescribing unique oversight procedures to be accomplished by 
Component professional security personnel (industrial security 
inspections will be conducted in the normal manner by the Defense 
Investigative Service).



Sec. 159a.55  Accountability and control.

    (a) Top Secret Information. DoD activities shall establish the 
following procedures:
    (1) Control Officers. Top Secret Control Officers (TSCOs) and 
alternates shall be designated within offices to be responsible for 
receiving, dispatching, and maintaining accountability registers of Top 
Secret documents. Such individuals shall be selected on the basis of 
experience and reliability, and shall have Top Secret security 
clearances. TSCOs need not be appointed in

[[Page 841]]

those instances where there is no likelihood of processing Top Secret 
documentation.
    (2) Accountability--(i) Top Secret Registers. Top Secret 
accountability registers shall be maintained by each office originating 
or receiving Top Secret information. Such registers shall be retained 
for 2 years and shall, as a minimum, reflect the following:
    (A) Sufficient information to identify adequately the Top Secret 
document or material to include the title or appropriate short title, 
date of the document, and identification of the originator;
    (B) The date the document or material was received;
    (C) The number of copies received or later reproduced; and
    (D) The disposition of the Top Secret document or material and all 
copies of such documents or material.
    (ii) Serialization and Copy Numbering. Top Secret documents and 
material shall be numbered serially. In addition, each Top Secret 
document shall be marked to indicate its copy number, for example, copy 
-1- of -2- copies.
    (iii) Disclosure Records. Each Top Secret document or item of 
material shall have appended to it a Top Secret disclosure record. The 
name and title of all individuals, including stenographic and clerical 
personnel to whom information in such documents and materials has been 
disclosed, and the date of such disclosure, shall be recorded thereon. 
Disclosures to individuals who may have had access to containers in 
which Top Secret information is stored, or who regularly handle a large 
volume of such information need not be so recorded. Such individuals, 
when identified on a roster, are deemed to have had access to such 
information. Disclosure records shall be retained for 2 years after the 
documents or materials are transferred, downgraded, or destroyed.
    (3) Inventories. All Top Secret documents and material shall be 
inventoried at least once annually. The inventory shall reconcile the 
Top Secret accountability register with the documents or material on 
hand. At such time, each document or material shall be examined for 
completeness. DoD Component senior officials (Sec. 159a.93 (b) and (c)) 
may authorize the annual inventory of Top Secret documents and material 
in repositories, libraries, or activities that store large volumes of 
Top Secret documents or material to be limited to documents and material 
to which access has been granted within the past year, and 10 percent of 
the remaining inventory. If a storage system contains large volumes of 
information and security measures are adequate to prevent access by 
unauthorized persons, a request for waiver of the annual inventory 
requirement accompanied by full justification may be submitted to the 
DUSD(P).
    (4) Retention. Top Secret information shall be retained only to the 
extent necessary to satisfy current requirements. Custodians shall 
destroy nonrecord copies of Top Secret documents when no longer needed. 
Record copies of documents that cannot be destroyed shall be reevaluated 
and, when appropriate, downgraded, declassified, or retired to 
designated records centers.
    (5) Receipts. Top Secret documents and material will be accounted 
for by a continuous chain of receipts. Receipts shall be maintained for 
2 years.
    (b) Secret Information. Administrative procedures shall be 
established by each DoD Component for controlling Secret information and 
material originated or received by an activity; distributed or routed to 
a sub-element of such activity; and disposed of by the activity by 
transfer of custody or destruction. The control system for Secret 
information must be determined by a practical balance of security and 
operating efficiency and must meet the following minimum requirements:
    (1) It must provide a means to ensure that Secret material sent 
outside a major subordinate element (the activity) of the DoD Component 
concerned has been delivered to the intended recipient. Such delivery 
may be presumed where the material is sent electronically over secure 
voice or data circuits. Ensuring physical delivery may be accomplished 
by use of a receipt as provided in Sec. 159.58(c)(2) or through hand-to-
hand transfer when the receiving party acknowledges responsibility for 
the Secret material.
    (2) It must provide a record of receipt and dispatch of Secret 
material by

[[Page 842]]

each major subordinate element. The dispatch record requirement may be 
satisfied when the distribution of Secret material is evident from 
addresses or distribution lists for classified documentation. Records of 
receipt and dispatch are required regardless of the means used to ensure 
delivery of the material (see paragraph (b)(1) of this section).
    (3) Records of receipt and dispatch for Secret material shall be 
retained for a minimum of 2 years.
    (c) Confidential Information. Administrative controls shall be 
established to protect Confidential information received, originated, 
transmitted, or stored by an activity.
    (d) Receipt of Classified Material. Procedures shall be developed 
within DoD activities to protect incoming mail, bulk shipments, and 
items delivered by messenger until a determination is made whether 
classified information is contained therein. Screening points shall be 
established to limit access to classified information to cleared 
personnel.
    (e) Working Papers. (1) Working papers are documents and material 
accumulated or created in the preparation of finished documents and 
material. Working papers containing classified information shall be:
    (i) Dated when created;
    (ii) Marked with the highest classification of any information 
contained therein;
    (iii) Protected in accordance with the assigned classification;
    (iv) Destroyed when no longer needed; and
    (v) Accounted for, controlled, and marked in the manner prescribed 
for a finished document of the same classification when:
    (A) Released by the originator outside the activity or transmitted 
electrically or through message center channels within the activity;
    (B) Retained more than 90 days from date of origin;
    (C) Filed permanently; or
    (D) Top Secret information is contained therein.
    (2) Heads of DoD Components, or their single designees, may approve 
waivers of accountability, control, and marking requirements for working 
papers containing Top Secret information for activities within their 
Components on a case-by-case basis provided a determination is made 
that:
    (i) The conditions set forth in paragraph (e)(1)(v) (A), (B), or (C) 
of this section, will remain in effect;
    (ii) The activity seeking a waiver routinely handles large volumes 
of Top Secret working papers and compliance with prescribed 
accountability, control, and marking requirements would have an adverse 
affect on the activity's mission or operations; and
    (iii) Access to areas where Top Secret working papers are handled is 
restricted to personnel who have an appropriate level of clearance, and 
other safeguarding measures are adequate to preclude the possibility of 
unauthorized disclosure.
    (3) In all cases in which a waiver is granted under paragraph (e)(2) 
of this section, the DUSD(P) shall be notified.
    (f) Restraint on Reproduction. Except for the controlled initial 
distribution of information processed or received electrically or as 
provided by Sec. 159a.2(f) and Sec. 159a.29(c), portions of documents 
and materials that contain Top Secret information shall not be 
reproduced without the consent of the originator or higher authority. 
Any stated prohibition against reproduction shall be observed strictly. 
(See Sec. 159a.35(f)) To the extent possible, DoD Components shall 
establish classified reproduction facilities where only designated 
personnel can reproduce classified materials and institute key control 
systems for reproduction areas. Also, when possible, two people shall be 
involved in the reproduction process to help assure positive control and 
safeguarding of all copies. The following additional measures apply to 
reproduction equipment and to the reproduction of classified 
information:
    (1) Copying of documents containing classified information shall be 
minimized;
    (2) Officials authorized to approve the reproduction of Top Secret 
and Secret information shall be designated by position title and shall 
review the need for reproduction of classified documents and material 
with a view toward minimizing reproduction.

[[Page 843]]

    (3) Specific reproduction equipment shall be designated for the 
reproduction of classified information. Rules for reproduction of 
classified information shall be posted on or near the designated 
equipment;
    (4) Notices prohibiting reproduction of classified information shall 
be posted on equipment used only for the reproduction of unclassified 
information;
    (5) DoD Components shall ensure that equipment used for reproduction 
of classified information does not leave latent images in the equipment 
or on other material;
    (6) All copies of classified documents reproduced for any purpose 
including those incorporated in a working paper are subject to the same 
controls prescribed for the document from which the reproduction is 
made; and
    (7) Records shall be maintained for 2 years to show the number and 
distribution of reproduced copies of all Top Secret documents, of all 
classified documents covered by special access programs distributed 
outside the originating agency, and of all Secret and Confidential 
documents that are marked with special dissemination and reproduction 
limitations.
(See Sec. 159a.35(f))



                         Subpart I--Transmission



Sec. 159a.57  Methods of transmission or transportation.

    (a) Policy. Classified information may be transmitted or transported 
only as specified in this subpart.
    (b) Top Secret Information. Transmission of Top Secret information 
shall be effected only by:
    (1) The Armed Forces Courier Service (ARFCOS);
    (2) Authorized DoD Component Courier Services,
    (3) If appropriate, the Department of State Courier System;
    (4) Cleared and designated U.S. military personnel and Government 
civilian employees traveling on a conveyance owned, controlled, or 
chartered by the U.S. Government or DoD contractors;
    (5) Cleared and designated U.S. Military personnel and government 
civilian employees by surface transportation;
    (6) Cleared and designated U.S. Military personnel and government 
civilian employees on scheduled commercial passenger aircraft within and 
between the United States, its Territories, and Canada, when approved in 
accordance with Sec. 159a.59(d)(1).
    (7) Cleared and designated U.S. Military personnel and government 
civilian employees on scheduled commercial passenger aircraft on flights 
outside the United States, its territories, and Canada, when approved in 
accordance with Sec. 159a.59(d)(2).
    (8) Cleared and designated DoD contractor employees within and 
between the United States and its Territories provided that the 
transmission has been authorized in writing by the appropriate 
contracting officer or his designated representative, and the designated 
employees have been briefed on their responsibilities as couriers or 
escorts for the protection of Top Secret material. Complete guidance for 
Top Secret transmission is specified in DoD 5220.22-R and DoD 5220.22-M.
    (9) A cryptographic system authorized by the Director, NSA, or via a 
protected distribution system designed and installed to meet the 
standards included in the National COMSEC and Emanations Security 
(EMSEC) Issuance System.
    (c) Secret Information. Transmission of Secret information may be 
effected by:
    (1) Any of the means approved for the transmission of Top Secret 
information except that Secret information may be introduced into the 
ARFCOS only when the control of such information cannot be otherwise 
maintained in U.S. custody. This restriction does not apply to SCI and 
COMSEC information;
    (2) Appropriately cleared contractor employees within and between 
the United States and its Territories provided that:
    (i) The designated employees have been briefed in their 
responsibilities as couriers or escorts for protecting Secret 
information;
    (ii) The classified information remains under the constant custody 
and protection of the contractor personnel at all times; and
    (iii) The transmission otherwise meets the requirements specified in

[[Page 844]]

DoD 5220.22-R and DoD 5220.22-M. In other areas, appropriately cleared 
DoD contractor employees may transmit classified material only as 
prescribed by DoD 5220.22-R and DoD 5220.22-M.
    (3) U.S. Postal Service registered mail within and between the 
United States and its Territories;
    (4) U.S. Postal Service registered mail through Army, Navy, or Air 
Force Postal Service facilities outside the United States and its 
Territories, provided that the information does not at any time pass out 
of U.S. citizen control and does not pass through a foreign postal 
system or any foreign inspection;
    (5) U.S. Postal Service and Canadian registered mail with registered 
mail receipt between U.S. Government and Canadian Government 
installations in the United States and Canada;
    (6) Carriers authorized to transport Secret information by way of a 
Protective Security Service (PSS) under the DoD Industrial Security 
Program. This method is authorized only within the U.S. boundaries and 
only when the size, bulk, weight, and nature of the shipment, or escort 
considerations make the use of other methods impractical. Routings for 
these shipments will be obtained from the Military Traffic Management 
Command (MTMC);
    (7) The following carriers under appropriate escort: government and 
government contract vehicles including aircraft, ships of the U.S. Navy, 
civil service-operated U.S. Naval ships, and ships of U.S. registry. 
Appropriately cleared operators of vehicles, officers of ships or pilots 
of aircraft who are U.S. citizens may be designated as escorts provided 
the control of the carrier is maintained on a 24-hour basis. The escort 
shall protect the shipment at all times, through personal observation or 
authorized storage to prevent inspection, tampering, pilferage, or 
unauthorized access. However, observation of the shipment is not 
required during the period it is stored in an aircraft or ship in 
connection with flight or sea transit, provided the shipment is loaded 
into a compartment that is not accessible to any unauthorized persons or 
in a specialized secure, safe-like container that is:
    (i) Constructed of solid building material that provides a 
substantial resistance to forced entry;
    (ii) Constructed in a manner that precludes surreptitious entry 
through disassembly or other means, and that attempts at surreptitious 
entry would be readily discernible through physical evidence of 
tampering; and
    (iii) Secured by a numbered cable seal lock affixed to a substantial 
metal hasp in a manner that precludes surreptitious removal and provides 
substantial resistance to forced entry.
    (8) Use of specialized containers aboard aircraft requires that:
    (i) Appropriately cleared personnel maintain observation of the 
material as it is being loaded aboard the aircraft and that observation 
of the aircraft continues until it is airborne;
    (ii) Observation by appropriately cleared personnel is maintained at 
the destination as the material is being off-loaded and at any 
intermediate stops. Observation will be continuous until custody of the 
material is assumed by appropriately cleared personnel.
    (d) Confidential Information. Transmission of Confidential 
information may be effected by:
    (1) Means approved for the transmission of Secret information. 
However, U.S. Postal Service registered mail shall be used for 
Confidential only as indicated in paragraph (c)(2) of this section;
    (2) U.S. Postal Service registered mail for:
    (i) Confidential information of NATO;
    (ii) Other Confidential material to and from FPO or APO addressees 
located outside the United States and its Territories;
    (iii) Other addressees when the originator is uncertain that their 
location is within U.S. boundaries. Use of return postal receipts on a 
case-by-case basis is authorized.
    (3) U.S. Postal Service first class mail between DoD Component 
locations anywhere in the United States and its Territories. However, 
the outer envelope or wrappers of such Confidential material shall be 
endorsed ``POSTMASTER: Address Correction Requested/Do Not Forward.'' 
Certified or,

[[Page 845]]

if appropriate, registered mail shall be used for material directed to 
DoD contractors and to non-DoD agencies of the Executive Branch. U.S. 
Postal Service Express Mail Service may be used between DoD Component 
locations, between DoD contractors, and between DoD Components and DoD 
contractors.
    (4) Within U.S. boundaries, commercial carriers that provide a 
Constant Surveillance Service (CSS). Information concerning commercial 
carriers that provide CSS may be obtained from the MTMC.
    (5) In the custody of commanders or masters of ships of U.S. 
registry who are U.S. citizens. Confidential information shipped on 
ships of U.S. registry may not pass out of U.S. Government control. The 
commanders or masters must give and receive classified information 
receipts and agree to:
    (i) Deny access to the Confidential material by unauthorized 
persons, including customs inspections, with the understanding that 
Confidential cargo that would be subject to customs inspection will not 
be unloaded; and
    (ii) Maintain control of the cargo until a receipt is obtained from 
an authorized representative of the consignee.
    (6) Such alternative or additional methods of transmission as the 
head of any DoD Component may establish by rule or regulation, provided 
those methods afford at least an equal degree of security.
    (e) Transmission of Classified Material to Foreign Governments. 
After a determination by designated officials pursuant to DoD Directive 
5230.11 that classified information or material may be released to a 
foreign government, the material shall be transferred between authorized 
representatives of each government in compliance with the provisions of 
this subpart. To assure compliance, each contract, agreement, or other 
arrangement that involves the release of classified material to foreign 
entities shall either contain transmission instructions or require that 
a separate transportation plan be approved by the appropriate DoD 
security and transportation officials prior to release of the material. 
(See DoD TS-5105.21-M-3 \31\ for guidance regarding SCI.)
---------------------------------------------------------------------------

    \31\ See footnote 13 to Sec. 159a.33(j)
---------------------------------------------------------------------------

    (1) Classified material to be released directly to a foreign 
government representative shall be delivered or transmitted only to a 
person who has been designated in writing by the recipient government as 
its officer, agent, or employee (hereafter referred to as the designated 
representative). Foreign governments may designate a freight forwarder 
as their agent. This written designation shall contain assurances that 
such person has a security clearance at the appropriate level and that 
the person will assume full security responsibility for the material on 
behalf of the foreign government. The recipient will be required to 
execute a receipt for the material, regardless of the level of 
classification.
    (2) Classified material that is suitable for transfer by courier or 
postal service, and which cannot be transferred directly to a foreign 
government's designated representative as specified in paragraph (e)(1) 
of this section, shall be transmitted by one of the methods specified in 
paragraph (b), (c), or (d) of this section, for the designated 
classification level to:
    (i) An embassy, consulate, or other official agency of the recipient 
government having extraterritorial status in the United States, or to
    (ii) A U.S. Embassy or a U.S. military organization in the recipient 
country or in a third-party country, if applicable, for delivery to a 
designated representative of the intended recipient government. In 
either case, the assurance in paragraph (e)(1) of this section, and a 
receipt, must be obtained.
    (3) The shipment of classified material as freight via truck, rail, 
aircraft, or ship shall be in compliance with the following:
    (i) Shipment Resulting from Foreign Military Sales (FMS). DoD 
officials authorized to approve a FMS transaction that involves the 
delivery of U.S. classified material to a foreign purchaser shall, at 
the outset of negotiation or consideration of proposal, consult with DoD 
transportation authorities (Military Traffic Management Command, 
Military Sealift Command, Military

[[Page 846]]

Airlift Command, or other, as appropriate) to determine whether secure 
shipment from the CONUS point of origin to the ultimate foreign 
destination is feasible. Normally, the United States will use the 
Defense Transportation System (DTS) to deliver classified material to 
the recipient government. If, in the course of FMS case processing, the 
foreign purchaser proposes to take delivery and custody of the 
classified material in the United States and use it own facilities and 
transportation for onward shipment to its territory, the foreign 
purchaser or its designated representative shall be required to submit a 
transportation plan for DoD review and approval. This plan, as a 
minimum, shall specify the storage facilities, delivery and transfer 
points, carriers, couriers or escorts, and methods of handling to be 
used from the CONUS point of origin to the final destination and return 
shipment when applicable. (See Appendix E to this part) Security 
officials of the DoD Component that initiates the FMS transaction shall 
evaluate the transportation plan to determine whether the plan 
adequately ensures protection of the highest level of classified 
material involved. Unless the DoD Component initiating the FMS 
transaction approves the transportation plan as submitted, or it is 
modified to meet U.S. security standards, shipment by other than DTS 
shall not be permitted. Transmission instructions or the requirement for 
an approved transportation plan shall be incorporated into the security 
requirements of the United States Department of Defense Offer and 
Acceptance (DD Form 1513).
    (ii) Shipments Resulting from Direct Commercial Sales. Classified 
shipments resulting from direct commercial sales must comply with the 
same security standards that apply to FMS shipments. Defense 
contractors, therefore, will consult, as appropriate, with the 
purchasing government, the DIS Regional Security Office, and the owning 
Military Department prior to consummation of a commercial contract that 
will result in the shipment of classified material to obtain approval of 
the transportation plan.
    (iii) Delivery within the United States, Its Territories, or 
Possessions. Delivery of classified material to a foreign government at 
a point within the United States, its territories, or its possessions, 
shall be made only to a person identified in writing by the recipient 
government as its designated representative as specified in paragraph 
(e)(1) of this section. The only authorized delivery points are:
    (A) An embassy, consulate, or other official agency under the 
control of the recipient government.
    (B) Point of origin. When a designated representative of the 
recipient government accepts delivery of classified U.S. material at the 
point of origin (for example, a manufacturing facility or depot), the 
DoD official who transfers custody shall obtain a receipt for the 
classified material and assure that the recipient is cognizant or secure 
means of onward movement of the classified material to its final 
destination, consistent with the approved transportation plan.
    (C) Military or commercial ports of embarkation (POE) that are 
recognized points of departure from the United States, its territories, 
or possessions, for onloading aboard a ship, aircraft, or other carrier 
authorized under paragraph (e)(3)(v) of this section. In these cases, 
the transportation plan shall provide for U.S.-controlled secure 
shipment to the CONUS transshipment point and the identification of a 
secure storage facility, government or commercial, at or in proximity to 
the POE. A DoD official authorized to transfer custody is to supervise 
or observe the onloading of FMS material being transported via the DTS 
and other onloading wherein physical and security custody of the 
material has yet to be transferred formally to the foreign recipient. In 
the event that transfer of physical and security custody cannot be 
accomplished promptly, the DoD official shall ensure that the classified 
material is either returned to a secure storage facility of the U.S. 
shipper (government or contractor); or segregated and placed under 
constant surveillance of a duly cleared U.S. security force at the POE; 
or held in the secure storage facility (government or commercial) 
designated in the transportation plan.

[[Page 847]]

    (D) Freight forwarder facility that is identified by the recipient 
government as its designated representative and that is cleared in 
accordance with paragraph (e)(3)(vi) of this section, to the level of 
the classified material to be received. In these cases, a person 
identified as a designated representative must be present to accept 
delivery of the classified material and receipt for it, to include full 
acceptance of security responsibility.
    (iv) Delivery Outside the United States, Its Territories, or 
Possessions--(A) Delivery within the recipient country. Classified U.S. 
material to be delivered to a foreign government within the recipient 
country shall be delivered on arrival in the recipient country to a U.S. 
Government representative who shall arrange for its transfer to a 
designated representative of the recipient government. If the shipment 
is escorted by a U.S. Government official authorized to accomplish the 
transfer of custody, the material may be delivered directly to the 
recipient government's designated representative upon arrival.
    (B) Delivery Within a Third Country. Classified material to be 
delivered to a foreign government representative within a third country 
shall be delivered to an agency or installation of the United States, or 
of the recipient government, that has extraterritorial status or 
otherwise is exempt from the jurisdiction of the third country. Unless 
the material is accompanied by a U.S. Government official authorized to 
accomplish the transfer of custody, a U.S. Government official shall be 
designated locally to receive the shipment upon arrival and be vested 
with authority to effect delivery to the intended recipient government's 
designated representative.
    (v) Overseas Carriers. Overseas shipments of U.S. classified 
material shall be made only via ships, aircraft, or other carriers that 
are:
    (A) Owned or chartered by the U.S. Government or under U.S. 
registry,
    (B) Owned or chartered by or under the registry of the recipient 
government, or
    (C) Otherwise expressly authorized by the head of the DoD Component 
having classification jurisdiction over the material involved. Overseas 
shipments of classified material shall be escorted, prepared for 
shipment, packaged, and stored onboard as prescribed elsewhere in this 
subpart and in DoD 5220.22-R and DoD 5220.22-M.
    (vi) Freight Forwarders. Only freight forwarders that have been 
granted an appropriate security clearance by the Department of Defense 
or the recipient government are eligible to receive, process, and store 
U.S. classified material authorized for release to foreign governments. 
However, a freight forwarder that does not have access to or custody of 
the classified material need not be cleared.
    (f) Consignor-Consignee Responsibility for Shipment of Bulky 
Material. The consignor of a bulk shipment shall:
    (1) Normally, select a carrier that will provide a single line 
service from the point of origin to destination, when such a service is 
available;
    (2) Ship packages weighing less than 200 pounds in closed vehicles 
only;
    (3) Notify the consignee, and military transshipping activities, of 
the nature of the shipment (including level of classification), the 
means of shipment, the number of seals, if used, and the anticipated 
time and date of arrival by separate communication at least 24 hours in 
advance of arrival of the shipment. Advise the first military 
transshipping activity that, in the event the material does not move on 
the conveyance originally anticipated, the transshipping activity should 
so advise the consignee with information of firm transshipping date and 
estimated time of arrival. Upon receipt of the advance notice of a 
shipment of classified material, consignees and transshipping activities 
shall take appropriate steps to receive the classified shipment and to 
protect it upon arrival.
    (4) Annotate the bills of lading to require the carrier to notify 
the consignor immediately by the fastest means if the shipment is unduly 
delayed enroute. Such annotations shall not under any circumstances 
disclose the classified nature of the commodity. When seals are used, 
annotate substantially as follows:

    DO NOT BREAK SEALS EXCEPT IN EMERGENCY OR UPON AUTHORITY OF 
CONSIGNOR OR CONSIGNEE. IF BROKEN APPLY CARRIER'S SEALS AS SOON AS

[[Page 848]]

POSSIBLE AND IMMEDIATELY NOTIFY CONSIGNOR AND CONSIGNEE.

    (5) Require the consignee to advise the consignor of any shipment 
not received more than 48 hours after the estmated time of arrival 
furnished by the consignor or transshipping activity. Upon receipt of 
such notice, the consignor shall immediately trace the shipment. If 
there is evidence that the classified material was subjected to 
compromise, the procedures set forth in subpart G of this part for 
reporting compromises shall apply.
    (g) Transmission of COMSEC Information. COMSEC information shall be 
transmitted in accordance with National COMSEC Instruction 4005.
    (h) Transmission of Restricted Data. Restricted Data shall be 
transmitted in the same manner as other information of the same security 
classification. The transporting and handling of nuclear weapons or 
nuclear components shall be in accordance with DoD Directives 4540.1 
\32\ and 5210.41 \33\ and applicable DoD Component directives and 
regulations.
---------------------------------------------------------------------------

    \32\ See footnote 1 to Sec. 159a.3
    \33\ See footnote 1 to Sec. 159a.3
---------------------------------------------------------------------------

[54 FR 26959, June 27, 1989; 54 FR 46610, Nov. 6, 1989]



Sec. 159a.58  Preparation of material for transmission, shipment, or conveyance.

    (a) Envelopes or Containers. (1) Whenever classified information is 
transmitted, it shall be enclosed in two opaque sealed envelopes or 
simliar wrappings when size permits, except as provided by the 
following:
    (2) Whenever classified material is transmitted of a size not 
suitable for transmission in accordance with paragraph (a)(1) of this 
section, it shall be enclosed in two opaque sealed containers, such as 
boxes or heavy wrappings.
    (i) If the classified information is an internal component of a 
packageable item of equipment, the outside shell or body may be 
considered as the inner enclosure provided it does not reveal classified 
information.
    (ii) If the classified material is an inaccessible internal 
component of a bulky item of equipment that is not reasonably 
packageable, the outside or body of the item may be considered to be a 
sufficient enclosure provided the shell or body does not reveal 
classified information.
    (iii) If the classified material is an item or equipment that is not 
reasonably packageable and the shell or body is classified, it shall be 
concealed with an opaque covering that will hide all classified 
features.
    (iv) Specialized shipping containers, including closed cargo 
transporters, may be used instead of the above packaging requirements. 
In such cases, the container may be considered the outer wrapping or 
cover.
    (3) Material used for packaging shall be of such strength and 
durability as to provide security protection while in transit, prevent 
items from breaking out of the container, and to facilitate the 
detection of any tampering with the container. The wrappings shall 
conceal all classified characteristics.
    (4) Closed and locked vehicles, compartments, or cars shall be used 
for shipments of classified information except when another method is 
authorized by the consignor. Alternative methods authorized by the 
consignor must provide security equivalent to or better than the methods 
specified herein. In all instances, individual packages weighing less 
than 200 pounds gross shall be shipped only in a closed vehicle.
    (5) To minimize the possibility of compromise of classified material 
caused by improper or inadequate packaging thereof, responsible 
officials shall ensure that proper wrappings are used for mailable bulky 
packages. Responsible officials shall require the inspection of bulky 
packages to determine whether the material is suitable for mailing or 
whether it should be transmitted by other approved means.
    (6) When classified material is hand-carried outside an activity, a 
locked briefcase may serve as the outer wrapper. In such cases, the 
addressing requirements of paragraph (b)(4) of this section do not 
apply; however, the requirements of paragraph (b)(3) of this section are 
applicable.
    (b) Addressing. (1) Classified information shall be addressed to an 
official government activity or DoD contractor with a facility clearance 
and not to an

[[Page 849]]

individual. This is not intended, however, to prevent use of office code 
numbers or such phrases in the address as ``Attention: Research 
Department,'' or similar aids in expediting internal routing, in 
addition to the organization address.
    (2) Classified written information shall be folded or packed in such 
a manner that the text will not be in direct contact with the inner 
envelope or container. A receipt form shall be attached to or enclosed 
in the inner envelope or container for all Secret and Top Secret 
information; Confidential information will require a receipt only if the 
originator deems it necessary. The mailing of written materials of 
different classifications in a single package should be avoided. 
However, when written materials of different classifications are 
transmitted in one package, they shall be wrapped in a single inner 
envelope or container. A receipt listing all classified information for 
which a receipt is requested shall be attached or enclosed. The inner 
envelope or container shall be marked with the highest classification of 
the contents.
    (3) The inner envelope or container shall show the address of the 
receiving activity, classification, including, where appropriate, the 
``Restricted Data'' marking, and any applicable special instructions. It 
shall be carefully sealed to minimize the possibility of access without 
leaving evidence of tampering.
    (4) An outer or single envelope or container shall show the complete 
and correct address and the return address of the sender.
    (5) An outer cover or single envelope or container shall not bear a 
classification marking, a listing of the contents divulging classified 
information, or any other unusual data or marks that might invite 
special attention to the fact that the contents are classified.
    (6) Care must be taken to ensure that classified information 
intended only for U.S. elements of international staffs or other 
organizations is addressed specifically to those elements.
    (c) Receipt Systems. (1) Top Secret information shall be transmitted 
under a chain of receipts covering each individual who gets custody.
    (2) Secret information shall be covered by a receipt when 
transmitted to a foreign government (including foreign government 
embassies located in the United States) and when transmitted between 
major subordinate elements of DoD Components and other authorized 
addressees except that a receipt is not required when there is a hand-
to-hand transfer between U.S. personnel and the recipient acknowledges 
responsibility for the Secret information.
    (3) Receipts for Confidential information are not required except 
when the information is transmitted to a foreign government (including 
foreign government embassies located in the United States) or upon 
request.
    (4) Receipts shall be provided by the transmitter of the material 
and the forms shall be attached to the inner cover.
    (i) Postcard receipt forms may be used.
    (ii) Receipt forms shall be unclassified and contain only such 
information as is necessary to identify the material being transmitted.
    (iii) Receipts shall be retained for at least 2 years.
    (5) In those instances where a fly-leaf (page check) form is used 
with classified publications, the postcard receipt will not be required.
    (d) Exceptions. Exceptions may be authorized to the requirements 
contained in this subpart by the head of the Component concerned or 
designee, provided the exception affords equal protection and 
accountability to that provided above. Proposed exceptions that do not 
meet these minimum standards shall be submitted to the DUSD(P) for 
approval.



Sec. 159a.59  Restrictions, procedures, and authorization concerning escort or handcarrying of classified information.

    (a) General Restrictions. Appropriately cleared personnel may be 
authorized to escort or handcarry classified material between their duty 
station and an activity to be visited subject to the following 
conditions:
    (1) The storage provisions of Sec. 159a.37 and Sec. 159a.38(g) of 
subpart F of this part shall apply at all stops enroute to the

[[Page 850]]

destination, unless the information is retained in the personal 
possession and under constant surveillance of the individual at all 
times. The hand carrying of classified information on trips that involve 
an overnight stop is not permissible without advance arrangements for 
proper overnight storage in a U.S. Government facility or, if in the 
United States, a cleared contractor's facility that has the requisite 
storage capability.
    (2) Classified material shall not be read, studied, displayed, or 
used in any manner in public conveyances or places.
    (3) When classified material is carried in a private, public or 
government conveyance, it shall not be placed in any detachable storage 
compartment such as automobile trailers, luggage racks, aircraft travel 
pods, or drop tanks nor, under any circumstances, left unattended.
    (4) Responsible officials shall provide a written statement to all 
individuals escorting or carrying classified material aboard commercial 
passenger aircraft authorizing such transmission. This authorization 
statement may be included in official travel orders and should 
ordinarily permit the individual to pass through passenger control 
points without the need for subjecting the classified material to 
inspection. Specific procedures for carrying classified documents aboard 
commercial aircraft are contained in paragraph (c) of this section.
    (5) Each activity shall list all classified information carried or 
escorted by traveling personnel. All classified information shall be 
accounted for.
    (6) Individuals authorized to hand-carry or escort classified 
material shall be fully informed of the provisions of this subpart, and 
shall sign a statement to that effect prior to the issuance of written 
authorization or identification media. This statement shall be retained 
for a minimum of 2 years; it need not be executed on each occasion that 
the individual is authorized to transport classified information 
provided a signed statement is on file.
    (b) Restrictions on Handcarrying Classified Information Aboard 
Commercial Passenger Aircraft. Classified information shall not be hand-
carried aboard commercial passenger aircraft unless:
    (1) There is neither time nor means available to move the 
information in the time required to accomplish operational objectives or 
contract requirements.
    (2) The handcarry has been authorized by an appropriate official in 
accordance with paragraph (d) of this section.
    (3) In the case of the handcarry of classified information across 
international borders, arrangements have been made to ensure that such 
information will not be opened by customs, border, postal, or other 
inspectors, either U.S. or foreign.
    (4) The handcarry is accomplished aboard a U.S. carrier. Foreign 
carriers will be utilized only when no U.S. carrier is available and 
then the approving official must ensure that the information will remain 
in the custody and physical control of the U.S. escort at all times.
    (c) Procedures for Handcarrying Classified Information Aboard 
Commercial Passenger Aircraft--(1) Basic requirements. (i) Advance and 
continued coordination by the DoD activity and contractor officials 
shall be made with departure airline and terminal officials and, when 
possible, with intermediate transfer terminals to develop mutually 
satisfactory arrangements within the terms of this issuance and Federal 
Aviation Administration (FAA) guidance. Specifically, a determination 
should be made beforehand whether documentation described in paragraph 
(c)(4) of this section, will be required. Local FAA Security Officers 
can be of assistance in making this determination. To aid coordination 
and planning, a listing of FAA field offices is at Appendix D to this 
part.
    (ii) The individual designated as courier shall be in possession of 
either DD Form 2, ``Armed (or Uniformed) Services Identification Card'' 
(any color), or other DoD or contractor picture identification card and 
written authorization to carry classified information.
    (2) Procedures for carrying classified information in envelopes. 
Persons carrying classified information should process through the 
airline ticketing and boarding procedures the same as all

[[Page 851]]

other passengers except for the following:
    (i) The classified information being carried shall contain no metal 
bindings and shall be contained in sealed envelopes. Should such 
envelopes be contained in a briefcase or other carry-on luggage, the 
briefcase or luggage shall be routinely offered for opening for 
inspection for weapons. The screening officials may check envelopes by 
X-ray machine, flexing, feel, and weight, without opening the envelopes 
themselves.
    (ii) Opening or reading of the classified document by the screening 
official is not permitted.
    (3) Procedures for transporting classified information in packages. 
Classified information in sealed or packaged containers shall be 
processed as follows:
    (i) The government or contractor official who has authorized the 
transport of the classified information shall notify the appropriate air 
carrier in advance.
    (ii) The passenger carrying the information shall report to the 
affected airline ticket counter before boarding, present his 
documentation, and the package or cartons to be exempt from screening. 
The airline representative will review the documentation and description 
of the containers to be exempt.
    (iii) If satisfied with the identification of the passenger and his 
documentation, the official will provide the passenger with an escort to 
the screening station and authorize the screening personnel to exempt 
the container from physical or other type inspection.
    (iv) If the airline official is not satisfied with the 
identification of the passenger or the authenticity of his 
documentation, the passenger will not be permitted to board, and not be 
subject to further screening for boarding purposes.
    (v) The actual loading and unloading of the information will be 
under the supervision of a representative of the air carrier; however, 
appropriately cleared personnel shall accompany the material and keep it 
under surveillance during loading and unloading operations. In addition, 
appropriately cleared personnel must be available to conduct 
surveillance at any intermediate stops where the cargo compartment is to 
be opened.
    (vi) DoD Components and contractor officials shall establish and 
maintain appropriate liaison with local FAA officials, airline 
representatives and airport terminal administrative and security 
officials. Prior notification is emphasized to ensure that the airline 
representative can make timely arrangements for courier screening.
    (4) Documentation. (i) When authorized to carry sealed envelopes or 
containers containing classified information, both government and 
contractor personnel shall present an identification card carrying a 
photograph, descriptive data, and signature of the individual. (If the 
identification card does not contain date of birth, height, weight, and 
signature, these items must be included in the written authorization.)
    (A) DoD personnel shall present an official identification issued by 
U.S. Government agency.
    (B) Contractor personnel shall present identification issued by the 
contractor or the U.S. Government. Contractors' identification cards 
shall carry the name of the employing contractor, or otherwise be marked 
to denote ``contractor.''
    (C) The courier shall have the original of the authorization letter. 
A reproduced copy is not acceptable; however, the traveler shall have 
sufficient authenticated copies to provide a copy to each airline 
involved. The letter shall be prepared on letterhead stationery of the 
agency or contractor authorizing the carrying of classified material in 
addition, the letter shall:
    (1) Give the full name of the individual and his employing agency or 
company;
    (2) Describe the type of identification the individual will present 
(for example, Naval Research Laboratory Identification Card, No. 1234; 
ABC Corporation Identification Card No. 1234);
    (3) Describe the material being carried (for example, three sealed 
packages, 9"  x  8"  x  24", addressee and addressor);
    (4) Identify the point of departure, destination, and known transfer 
points;
    (5) Carry a date of issue and an expiration date;

[[Page 852]]

    (6) Carry the name, title, and signature of the official issuing the 
letter. Each package or carton to be exempt shall be signed on its face 
by the official who signed the letter; and
    (7) Carry the name of the government agency designated to confirm 
the letter of authorization, and its telephone number. The telephone 
number of the agency designated shall be an official U.S. Government 
number.
    (ii) Information relating to the issuance of DoD identification 
cards is contained in DoD Instruction 1000.13 \34\. The green, gray, and 
red DD Forms 2 and other DoD and contractor picture ID card are 
acceptable to FAA.
---------------------------------------------------------------------------

    \34\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (iii) The Director, DIS, shall establish standards for the issuance 
of identification cards when required by contractor employees selected 
as couriers or whose duties will involve handcarrying of classified 
material.
    (d) Authority to Approve Escort or Handcarry of Classified 
Information Aboard Commercial Passenger Aircraft--(1) Within the United 
States, its Territories, and Canada. (i) DoD Component officials who 
have been authorized to approve travel orders and designate couriers may 
approve the escort or handcarry of classified information within the 
United States, its Territories, and Canada.
    (ii) The Director, DIS, may authorize contractor personnel to 
handcarry classified material in emergency or time-sensitive situations 
subject to adherence with the procedures and limitations specified in 
this section.
    (2) Outside the United States, its Territories, and Canada. The head 
of a DoD Component, or single designee at the headquarters or major 
command level, may authorize the escort or handcarrying of classified 
information outside the area encompassed by the boundaries of the United 
States, its Territories, and Canada upon certification by the requestor 
that:
    (i) The material is not present at the destination;
    (ii) The material is needed urgently for a specified official 
purpose; and
    (iii) There is a specified reason that the material could not be 
transmitted by other approved means to the destination in sufficient 
time for the stated purpose.



                   Subpart J--Disposal and Destruction



Sec. 159a.61  Policy.

    Documentary record information originated or received by a DoD 
Component in connection with the transaction of public business, and 
preserved as evidence of the organization, functions, policies, 
operations, decisions, procedures, or other activities of any U.S. 
Government department or agency or because of the informational value of 
the data contained therein, may be disposed of or destroyed only in 
accordance with DoD Component record management regulations. Nonrecord 
classified information, and other material of similar temporary nature, 
shall be destroyed when no longer needed under procedures established by 
the head of the cognizant DoD Component. These procedures shall 
incorporate means of verifying the destruction of classified information 
and material and be consistent with the following requirements.



Sec. 159a.62  Methods of destruction.

    Classified documents and material shall be destroyed by burning or, 
with the approval of the cognizant DoD Component head or designee, by 
melting, chemical decomposition, pulping, pulverizing, cross-cut 
shredding, or mutilation sufficient to preclude recognition or 
reconstruction of the classified information. (Strip shredders purchased 
prior to June 1, 1986 may continue to be used but only in circumstances 
where reconstruction of the residue is precluded. Shredding significant 
amounts of unclassified material together with classified material 
normally will meet this requirement.)



Sec. 159a.63  Destruction procedures.

    (a) Procedures shall be instituted that ensure all classified 
information intended for destruction actually is destroyed. Destruction 
records and imposition of a two-person rule, that is, having two cleared 
persons involved in the entire destruction process, will satisfy this 
requirement for Top Secret information. Imposition of a two-person

[[Page 853]]

rule, without destruction records, will satisfy this requirement for 
Secret information, as will use of destruction records without 
imposition of the two-person rule. Only one cleared person needs to be 
involved in the destruction process for Confidential information.
    (b) When burn bags are used for the collection of classified 
material that is to be destroyed at central destruction facilities, such 
bags shall be controlled in a manner designed to minimize the 
possibility of their unauthorized removal and the unauthorized removal 
of their classified contents prior to actual destruction. When filled, 
burn bags shall be sealed in a manner that will facilitate the detection 
of any tampering with the bag.
    (c) Procedures to ensure that all classified information intended 
for destruction actually is destroyed, other than those in paragraphs 
(a) and (b) of this section, shall be submitted to the DoD Component's 
senior official (Sec. 159a.93(b) and (c)) for approval.



Sec. 159a.64  Records of destruction.

    (a) Records of destruction are required for Top Secret information. 
The record shall be dated and signed at the time of destruction by two 
persons cleared for access to Top Secret information. However, in the 
case of Top Secret information placed in burn bags for central disposal, 
the destruction record may be signed by the officials when the 
information is so placed and the bags are sealed. Top Secret burn bags 
shall be numbered serially and a record kept of all subsequent handling 
of the bags until they are destroyed. This record may be in lieu of 
actual burn bag receipts and shall be maintained for a minimum of 2 
years.
    (b) Records of destruction of Secret and Confidential information 
are not required except for NATO Secret and some limited categories of 
specially controlled Secret information. When records of destruction are 
used for Secret information, only one cleared person has to sign such 
records. (DoD Directive 5100.55 provides guidance on the destruction of 
NATO classified material.)
    (c) Records of destruction shall be maintained for 2 years.



Sec. 159a.65  Classified waste.

    Waste material, such as handwritten notes, carbon paper, typewriter 
ribbons, and working papers that contains classified information must be 
protected to prevent unauthorized disclosure of the information. 
Classified waste shall be destroyed when no longer needed by a method 
described in Sec. 159a.62. Destruction records are not required.



Sec. 159a.66  Classified document retention.

    (a) Classified documents that are not permanently valuable records 
of the government shall not be retained more than 5 years from the date 
of origin, unless such retention is authorized by and in accordance with 
DoD Component record disposition schedules.
    (b) Throughout the Department of Defense, the head of each activity 
shall establish at least one clean-out day each year where a portion of 
the work performed in every office with classified information stored is 
devoted to the destruction of unneeded classified holdings.



                      Subpart K--Security Education



Sec. 159a.68  Responsibility and objectives.

    Heads of DoD Components shall establish security education programs 
for their personnel. Such programs shall stress the objectives of 
improving the protection of information that requires it. They shall 
also place emphasis on the balance between the need to release the 
maximum information appropriate under the Freedom of Information Act (32 
CFR part 285) and the interest of the Government in protecting the 
national security.



Sec. 159a.69  Scope and principles.

    The security education program shall include all personnel 
authorized or expected to be authorized access to classified 
information. Each DoD Component shall design its program to fit the 
requirements of different groups of personnel. Care must be exercised to 
assure that the program does not evolve into a perfunctory compliance 
with formal requirements without achieving

[[Page 854]]

the real goals of the program. The program shall, as a minimum, be 
designed to:
    (a) Advise personnel of the adverse effects to the national security 
that could result from unauthorized disclosure and of their personal, 
moral, and legal responsibility to protect classified information within 
their knowledge, possession, or control;
    (b) Indoctrinate personnel in the principles, criteria, and 
procedures for the classification, downgrading, declassification, 
marking, control and accountability, storage, destruction, and 
transmission of classified information and material, as prescribed in 
this Regulation, and alert them to the strict prohibitions against 
improper use and abuse of the classification system;
    (c) Familiarize personnel with procedures for challenging 
classification descisions believed to be improper;
    (d) Familiarize personnel with the security requirements of their 
particular assignment;
    (e) Inform personnel of the techniques employed by foreign 
intelligence activities in attempting to obtain classified information, 
and their responsibility to report such attempts;
    (f) Advise personnel of the penalties for engaging in espionage 
activities;
    (g) Advise personnel of the strict prohibition against discussing 
classified information over an unsecure telephone or in any other manner 
that permits interception by unauthorized persons;
    (h) Inform personnel of the penalties for violation or disregard of 
the provisions of this part (see Sec. 159a.97(b));
    (i) Instruct personnel that individuals having knowledge, 
possession, or control of classified information must determine, before 
disseminating such information, that the prospective recipient has been 
cleared for access by competent authority; needs the information in 
order to perform his or her official duties; and can properly protect 
(or store) the information.



Sec. 159a.70  Initial briefings.

    DoD personnel granted a security clearance (see Sec. 159a.53) shall 
not be permitted to have access to classified information until they 
have received an initial security briefing and have signed Standard Form 
189, ``Classified Information Nondisclosure Agreement.'' DoD 5200.1-PH-
1\35\ provides a sample briefing and additional information regarding 
Standard Form 189. Cleared personnel employed prior to June 1, 1986 must 
sign Standard Form 189 as soon as practicable but not later than 
February 28, 1990.
---------------------------------------------------------------------------

    \35\ See footnote 2 to Sec. 159a.3
---------------------------------------------------------------------------



Sec. 159a.71  Refresher briefings.

    Programs shall be established to provide, at a minimum, annual 
security training for personnel having continued access to classified 
information. The elements outlined in Sec. 159a.69 shall be tailored to 
fit the needs of experienced personnel.



Sec. 159a.72  Foreign travel briefings.

    (a) Personnel who have had access to classified information shall be 
given a foreign travel briefing, before travel, to alert them to their 
possible exploitation under the following conditions:
    (1) Travel to or through communist-controlled countries; and
    (2) Attendance at international scientific, technical, engineering 
or other professional meetings in the United States or in any country 
outside the United States where it can be anticipated that 
representatives of Communist-controlled countries will participate or be 
in attendance. (See also DoD Directive 5240.6 \3\\6\.)
---------------------------------------------------------------------------

    \3\\6\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (b) Individuals who travel frequently, or attend or host meetings of 
foreign visitors as described in paragraph (a)(2) of this section, need 
not be briefed for each occasion, but shall be provided a thorough 
briefing at least once every 6 months and a general reminder of security 
responsibilities before each such activity.



Sec. 159a.73  Termination briefings.

    (a) Upon termination of employment, administrative withdrawal of 
security clearance, or contemplated absence from duty or employment for 
60 days or more, DoD military personnel and civilian employees shall be 
given a termination briefing, return all classified

[[Page 855]]

material, and execute a Security Termination Statement. This statement 
shall include:
    (1) An acknowledgment that the individual has read the appropriate 
provisions of the Espionage Act, other criminal statutes, DoD 
regulations applicable to the safeguarding of classified information to 
which the individual has had access, and understands the implications 
thereof;
    (2) A declaration that the individual no longer has any documents or 
material containing classified information in his or her possession;
    (3) An acknowledgement that the individual will not communicate or 
transmit classified information to any unauthorized person or agency; 
and
    (4) An acknowledgement that the individual will report without delay 
to the FBI or the DoD Component concerned any attempt by any 
unauthorized person to solicit classified information.
    (b) When an individual refuses to execute a Security Termination 
Statement, that fact shall be reported immediately to the security 
manager of the cognizant organization concerned. In any such case, the 
individual involved shall be debriefed orally. The fact of a refusal to 
sign a Security Termination Statement shall be reported to the Director, 
Defense Investigative Service who shall assure that it is recorded in 
the Defense Central Index of Investigations.
    (c) The security termination statement shall be retained by the DoD 
Component that authorized the individual access to classified 
information for the period specified in the Component's record retention 
schedules, but for a minimum of 2 years after the individual is given a 
termination briefing.



                Subpart L--Foreign Government Information



Sec. 159a.75  Classification.

    (a) Classification. (1) Foreign government information classified by 
a foreign government or international organization of governments shall 
retain its original classification designation or be assigned a U.S. 
classification designation that will ensure a degree of protection 
equivalent to that required by the government or organization that 
furnished the information. Original classification authority is not 
required for this purpose.
    (2) Foreign government information that was not classified by a 
foreign entity but was provided with the expectation, expressed or 
implied, that the information, the source of the information, or both, 
are to be held in confidence must be classified by an original 
classification authority. The two-step procedure for classification 
prescribed in Sec. 159a.15(c) does not apply to the classification of 
such foreign government information because E.O. 12356 states a 
presumption of damage to the national security in the event of 
unauthorized disclosure of such information. Therefore, foreign 
government information shall be classified at least Confidential, but 
higher whenever the damage criteria of Sec. 159a.11 (b) or (c) are 
determined to be met.
    (b) Duration of Classification. (1) Foreign government information 
shall not be assigned a date or event for automatic declassification 
unless specified or agreed to by the foreign entity.
    (2) Foreign government information classified by the Department of 
Defense under this or previous regulations shall be protected for an 
indefinite period (see Sec. 159a.77(e)).



Sec. 159a.76  Declassification.

    (a) Policy. In considering the possibility of declassification of 
foreign government information, officials shall respect the intent of 
this regulation to protect foreign government information and 
confidential foreign sources.
    (b) Systematic Review. When documents containing foreign government 
information are encountered during the systematic review process they 
shall be referred to the originating agency for a declassification 
determination. Consultation with the foreign originator through 
appropriate channels may be necessary before final action can be taken.
    (c) Mandatory Review. Requests for mandatory review for 
declassification of foreign government information shall be processed 
and acted upon in accordance with the provisions of

[[Page 856]]

Sec. 159a.26, except that foreign government information will be 
declassified only in accordance with the guidelines developed for such 
purpose and after necessary consultation with other DoD Components or 
government agencies with subject matter interest. When these guidelines 
cannot be applied to the foreign government information requested, or in 
the absence of such guidelines, consultation with the foreign originator 
through appropriate channels normally should be effected prior to final 
action taken on the request. When the responsibile DoD Component is 
knowledgeable of the foreign originator's view toward declassification 
or continued classification of the types of information requested, 
consultation with the foreign originator may not be necessary.



Sec. 159a.77  Marking.

    (a) Equivalent U.S. Classification Designations. Except for the 
foreign security classification designation RESTRICTED, foreign 
classification designations, including those of international 
organizations of governments, that is, NATO, generally parallel U.S. 
classification designations. A table of equivalents is contained in 
Appendix A to this part.
    (b) Marking NATO Documents. Classified documents originated by NATO, 
if not already marked with the appropriate classification in English, 
shall be so marked. Markings required under Sec. 159a.34(c) shall not be 
placed on documents originated by NATO. Documents originated by NATO 
that are marked RESTRICTED shall be marked with the following additional 
notation: ``To be safeguarded in accordance with USSAN Instruction 1-
69'' (see DoD Directive 5100.55).
    (c) Marking Other Foreign Government Documents. (1) If the security 
classification designation of foreign government documents is shown in 
English, no other classification marking shall be applied. If the 
foreign classification designation is not shown in English, the 
equivalent overall U.S. classification designation (see Appendix A to 
this part) shall be marked conspicuously on the document. When foreign 
government documents are marked with a classification designation having 
no U.S. equivalent, as in the last column of Appendix A to this part, 
such documents shall be marked in accordance with paragraph (c)(2) of 
this section.
    (2) Certain foreign governments use a fourth classification 
designation as shown in the last column of Appendix A to this part. Such 
designations equate to the foreign classification RESTRICTED. If the 
foreign government documents are marked with any of the classification 
designations listed in the last column of Appendix A to this part, no 
other classification marking shall be applied. In all such cases, the 
notation, ``This classified material is to be safeguarded in accordance 
with DoD 5200.1-R or DoD 5220.22-M,'' shall be shown on the face of the 
document.
    (3) Other marking requirements prescribed by this Regulation for 
U.S. classified documents are not applicable to documents of foreign 
governments or international organizations of governments.
    (d) Marking of DoD Classification Determinations. Foreign documents 
containing foreign government information not classified by the foreign 
government but provided to the Department of Defense in confidence shall 
be classified as prescribed in Sec. 159a.75(a)(2) and marked with the 
appropriate U.S. classification.
    (e) Marking of Foreign Government Information in DoD Documents. (1) 
Except where such markings would reveal that information is foreign 
government information when that fact must be concealed, or reveal a 
confidential source or relationship not otherwise evident in the 
document or information, foreign government information incorporated in 
DoD documents shall be identified in a manner that ensures that such 
information is not declassified prematurely or made accessible to 
nationals of a third country without consent of the originator. This 
requirement may be satisfied by marking the face of the document 
``FOREIGN GOVERNMENT INFORMATION,'' or with another marking that 
otherwise indicates that the information is foreign government 
information, and by including the appropriate identification in the 
portion or paragraph classification markings, for example, (NS) or

[[Page 857]]

(U.K.-C). All other markings prescribed by Sec. 159a.31(d) are 
applicable to these documents. In addition, DoD classified documents 
that contain extracts of NATO classified information shall bear a 
marking substantially as follows on the cover or first page: ``THIS 
DOCUMENT CONTAINS NATO CLASSIFIED INFORMATION.''
    (2) When foreign RESTRICTED or NATO RESTRICTED information is 
included in an otherwise unclassified DoD document, the DoD document 
shall be marked CONFIDENTIAL. All requirements of Sec. 159a.31(d) apply 
to such documents. Portion markings on such a document include, for 
example ``(U),'' ``(NR),'' and ``(FRG-R).'' In addition, the appropriate 
caveat from paragraph (a) of this section, shall be included on the face 
of the document.
    (3) The ``Classified by'' line of DoD documents containing only 
foreign government information normally shall be completed with the 
identity of the foreign government or international organization 
involved, for example, ``Classified by Government of Australia'' or 
``Classfied by NATO,'' provided that other requirements of 
Sec. 159a.31(e) do not pertain to such documents.
    (4) The ``Declassify on'' line of DoD documents containing foreign 
government information normally shall be completed with the notation 
``Originating Agency's Determination Required'' or ``OADR'' (see 
Sec. 159a.36 and Sec. 159a.75(b)).



Sec. 159a.78  Protective measures.

    (a) NATO Classified Information. NATO classified information shall 
be safeguarded in accordance with the provisions of DoD Directive 
5100.55.
    (b) Other Foreign Government Information. (1) Classified foreign 
government information other than NATO information shall be protected as 
is prescribed by this part for U.S. classified information of a 
comparable classification.
    (2) Foreign government information, unless it is NATO information, 
that is marked under Sec. 159a.77(c)(2) or Sec. 159a.77(e)(2) shall be 
protected as U.S. CONFIDENTIAL, except that such information may be 
stored in locked filing cabinets, desks, or other similar closed spaces 
that will prevent access by unauthorized persons.



                   Subpart M--Special Access Programs



Sec. 159a.80  Policy.

    It is the policy of the Department of Defense to use the security 
classification categories and the applicable sections of E.O. 12356 and 
its implementing ISOO Directive, to limit access to classified 
information on a ``need-to-know'' basis to personnel who have been 
determined to be trustworthy. It is further policy to apply the ``need-
to-know'' principle in the regular system so that there will be no need 
to resort to formal Special Access Programs. Also, need-to-know control 
principles shall be applied within Special Access Programs. In this 
context, Special Access Programs may be created or continued only on 
specific showing that:
    (a) Normal management and safeguarding procedures are not sufficient 
to limit ``need-to-know'' or access; and
    (b) The number of persons who will need access will be reasonably 
small and commensurate with the objective of providing extra protection 
for the information invoved.



Sec. 159a.81  Establishment of special access programs.

    (a) Procedures for the establishment of Special Access Programs 
involving NATO classified information are based on international treaty 
requirements (see DoD Directive 5100.55).
    (b) The policies and procedures for access to and dissemination of 
Restricted Data and Critical Nuclear Weapon Design Information are 
contained in DoD Directive 5210.2.
    (c) Special Access Programs for foreign intelligence information 
under the cognizance of the Director of Central Intelligence, or those 
of the National Telecommunications and Information Systems Security 
Committee originate outside the Department of Defense. However, 
coordination with the DUSD(P) and the Component's central point of 
contact is necessary before the establishment or implementation of any 
such Programs by any DoD Component. The information required by 
Sec. 159a.80(f)(1) will be provided.

[[Page 858]]

    (d) Excluding those Programs and that information specified in 
paragraphs (a)(1), (2), and (3) of this section, Special Access Programs 
shall be established within the Military Departments by:
    (1) Submitting to the Secretary of the Department the information 
required under Sec. 159a.80(f)(1).
    (2) Obtaining written approval from the Secretary of the Department;
    (3) Providing to the DUSD(P) notice of the approval; and
    (4) Maintaining the information and rationale upon which approval 
was granted within the Military Department's central office.
    (e) Excluding those Programs and that information in paragraphs 
(d)(1), (2), and (3) of this section, Special Access Programs that are 
desired to be established in any DoD Component other than the Military 
Departments shall be submitted with the information referred to in 
Sec. 159a.80(f)(1) to the DUSD(P) for approval.
    (f) Upon specific written notice to one of the appropriate DoD 
Special Access Program approval officials, receipt of their written 
concurrence, protective Special Access Program controls may be applied 
to a prospective Special Access Program for up to a 6-month period from 
the date of such notice. However, in all instances, the Program must be 
terminated as a prospective Special Access Program or formally approved 
as a Special Access Program by the end of the 6-month time period.
    (g) Unless under DoD Directive S-5210.36 \3\\7\, Special Access 
Programs which involve one or more DoD Components, or a DoD Component 
and a non-DoD activity, shall be covered by a written agreement which 
must document who has the principal security responsibility, who is the 
primary sponsor of the Program, and who is responsible for obtaining 
Special Access Program approval.
---------------------------------------------------------------------------

    \3\\7\ See footnote 13 to Sec. 159a.33(j).
---------------------------------------------------------------------------



Sec. 159a.82  Review of special access programs.

    (a) Excluding those Programs specified in Sec. 159a.81 (a), (b), or 
(c), each Special Access Program shall be reviewed annually by the DoD 
Component responsible for establishment of the Program. To accommodate 
such reviews, DoD Components shall institute procedures to ensure the 
conduct of annual security inspections, with or without prior notice, 
and regularly scheduled audits by security, contract administration, and 
audit organizations. Also, Program managers shall ensure that Special 
Access Program activities have undergone a current review by legal 
counsel for compliance with law, executive order, regulation, and 
national policy. To accomplish such reviews, specially cleared pools of 
attorneys may be utilized, but in all cases legal counsel shall be 
provided with all information necessary to perform such reviews.
    (b) Special Access Programs, excluding those specified in 
Sec. 159a.81 (a), (b), or (c), or those required by treaty or 
international agreement, shall terminate automatically every 5 years 
unless reestablished in accordance with the procedures contained in 
Sec. 159a.81.



Sec. 159a.83  Control and central office administration.

    (a) Special Access Programs shall be controlled and managed in 
accordance with DoD Directive 5205.7 \3\\8\. Each DoD Component shall 
appoint a Special Access Program coordinator to establish and maintain a 
central office and to serve as a single point of contact for information 
concerning the establishment and security administration of all Special 
Access Programs established by or existing in the Component. These 
officials shall report to the DUSD(P) on the status of DoD Special 
Access Programs within the Component to include:
---------------------------------------------------------------------------

    \3\\8\ See footnote 1 to Sec. 159a.3.
---------------------------------------------------------------------------

    (1) The establishment of a Special Access Program as required by 
Sec. 159a.81(d)(3); and
    (2) Changes in Program status as required by Sec. 159a.85 (b) or 
(c).
    (b) Officials serving as single points of contact, as well as 
members of their respective staffs and other persons providing support 
to Special Access Programs who require access to multiple sets of 
particularly sensitive information, shall be subject to a 
counterintelligence-scope polygraph examination

[[Page 859]]

periodically but not less than once every 5 years. Additionally, such 
testing will be subject to the limitations imposed by Congress. The 
program for each DoD Component, as well as requests for waiver, shall be 
submitted for approval by the DUSD(P).



Sec. 159a.84  Codewords and nicknames.

    Excluding those Programs specified in Sec. 159a.81 (a), (b), and 
(c), each Special Access Program will be assigned a classified code 
word, or an unclassified nickname, or both. DoD Components other than 
Military Departments may request codewords and nicknames from the 
DUSD(P) individually or in block. If codewords or nicknames are obtained 
in block, however, the issuing Component shall promptly notify the 
DUSD(P) upon activitation and assignment.



Sec. 159a.85  Reporting of special access programs.

    (a) Report of Establishment. Reports to the Secretary of the 
Military Department or the DUSD(P) required under Sec. 159a.81 for 
Special Access Programs shall include:
    (1) The responsible department, agency, or DoD Component, including 
office identification;
    (2) The codeword and/or nickname of the Program;
    (3) The relationship, if any, to other Special Access Programs in 
the Department of Defense or other government agencies;
    (4) The rationale for establishing the Special Access Program 
including the reason why normal management and safeguarding procedures 
for classified information are inadequate;
    (5) The estimated number of persons granted special access in the 
responsible DoD Component; other DoD Components; other government 
agencies; contractors; and the total of such personnel;
    (6) A summary statement pertaining to the Program security 
requirements with particular emphasis upon those personnel security 
requirements governing access to Program information;
    (7) The date of Program establishment;
    (8) The estimated number and approximate dollar value, if known, of 
carve-out contracts that will be or are required to support the Program; 
and
    (9) The DoD Component official who is the point of contact (last 
name, first name, middle initial; position or title; mailing address; 
and telephone number).
    (10) A security plan and appropriate security classification guide 
and notification that a proper DD Form 254, ``Contract Security 
Classification Specification,'' has been issued to contractors 
participating in the Program.
    (b) Annual Reports. DoD Component annual reports from other than the 
Military Departments to the DUSD(P) shall be submitted not later than 
January 31 of each year, showing the changes in information provided 
under paragraph (a) of this section, as well as the date of last review. 
Annual reports shall reflect actual rather than estimated numbers of 
carve-out contracts and persons granted access and shall summarize the 
results of the inspections and audits required by Sec. 159a.82(a). 
Reports from the Military Departments which have approval authority will 
summarize the required reviews which have been conducted during the year 
by the central offices, to include details and numbers of carve-out 
contracts associated with approved Special Access Programs and their 
overall security posture and numbers of approved Programs by type. 
Additionally, the Military Department Secretaries authorized to approve 
such Programs shall furnish a name listing, by unclassified nickname if 
practicable, or approved Special Access Programs under their cognizance, 
and they will report any changes to the listing as they occur pursuant 
to the notification requirements of Sec. 159a.81(d)(3), that is, 
additions, deletions, and corrections to the DUSD(P). The effective date 
of information in the annual reports shall be December 31.
    (c) Termination Reports. The DUSD(P) shall be notified upon 
termination of a Special Access Program.



Sec. 159a.86  Accounting for special access programs.

    Each of the central offices which must be identified in accordance 
with Sec. 159a.83(a) shall maintain a complete

[[Page 860]]

listing of currently approved DoD Special Access Programs which 
encompasses the information outlined in Sec. 159a.85(a). These listings 
shall be readily available to the DUSD(P) or his designated 
representatives.



Sec. 159a.87  Limitations on access.

    Access to data reported under this subpart shall be limited to the 
DUSD(P) and the minimum number of properly indoctrinated staff necessary 
to perform the functions assigned the DUSD(P) herein. Access may not be 
granted to any other person for any purpose without the approval of the 
DoD Components sponsoring the Special Access Programs concerned.



Sec. 159a.88  ``Carve-Out'' contracts.

    (a) The Secretaries of the Military Departments and the DUSD(P), or 
their designees, shall ensure that, in those Special Access Programs 
involving contractors, special access controls are made applicable by 
legally binding instruments.
    (b) To the extent necessary for DIS to execute its security 
responsibilities with respect to Special Access Programs under its 
security cognizance, DIS personnel shall have access to all information 
relating to the administration of these Programs.
    (c) Excluding those Programs specified in Sec. 159a.81(c), the use 
of ``carve-out'' contracts that relieve the DIS from inspection 
responsibility under the Defense Industrial Security Program is 
prohibited unless:
    (1) Such contract supports a Special Access Program approved and 
administered under Sec. 159a.81;
    (2) Mere knowledge of the existence of a contract or of its 
affiliation with the Special Access Program is classified information; 
and
    (3) Carve-out status is approved for each contract by the Secretary 
of a Military Department, the Director, NSA, the DUSD(P), or their 
designees.
    (d) Approval to establish a ``carve-out'' contract must be requested 
from the Secretary of a Military Department, or designee(s), the 
Director, NSA, or designee(s), or in the case of other DoD Components, 
from the DUSD(P). Approved ``carve-out'' contracts shall be assured the 
support necessary for the requisite protection of the classified 
information involved. The support shall be specified through a system of 
controls that shall provide for:
    (1) A written security plan, oral waivers of which are prohibited 
except in critical situations that must be documented as soon as 
possible after the fact.

    Note: The plan must identify that DD Forms 254 have been distributed 
to the Defense Investigative Service as outlined in DoD Directive 
5205.7.

    (2) Professional security personnel at the sponsoring DoD Component 
performing security inspections at each contractor's facility which 
shall be conducted, at a minimum, with the frequency prescribed by 
paragraph 4-103 of DoD 5220.22-R;
    (3) ``Carve-out'' contracting procedures;
    (4) A central office of record; and
    (5) An official to be the single point of contact for security 
control and administration. DoD Components other than the Military 
Departments and NSA shall submit such appropriate rationale and security 
plan along with requests for approval to the DUSD(P).
    (e) An annual inventory of carve-out contracts shall be conducted by 
each DoD Component which participates in Special Access Programs.
    (f) This subsection relates back to the date of execution for each 
contract to which carve-out contracting techniques are applied. The 
carve-out status of any contract expires upon termination of the Special 
Access Program which it supports.



Sec. 159a.89  Oversight reviews.

    (a) DUSD(P) shall conduct oversight reviews, as required, to 
determine compliance with this subpart.
    (b) Pursuant to statutory authority, the Inspector General, 
Department of Defense, shall conduct oversight of Special Access 
Programs.



                      Subpart N--Program Management



Sec. 159a.91  Executive branch oversight and policy direction.

    (a) National Security Council. Pursuant to the provisions of E.O. 
12356, the

[[Page 861]]

NSC shall provide overall policy direction for the Information Security 
Program.
    (b) Administrator of General Services. The Administrator of General 
Services is responsible for implementing and monitoring the Information 
Security Program established under E.O. 12356. In accordance with E.O. 
12356, the Administrator delegates the implementation and monitorship 
functions of the Program to the Director of the ISOO.
    (c) Information Security Oversight Office--(1) Composition. The ISOO 
has a full-time director appointed by the Administrator of General 
Services with approval of the President. The Director has the authority 
to appoint a staff for the office.
    (2) Functions. The Director of the ISOO is charged with the 
following principal functions that pertain to the Department of Defense:
    (i) Oversee DoD actions to ensure compliance with E.O. 12356 
implementing directives, for example, the ISOO Directive No. 1 and this 
part;
    (ii) Consider and take action on complaints and suggestions from 
persons within or outside the government with respect to the 
administration of the Information Security Program;
    (iii) Report annually to the President through the NSC on the 
implementation of E.O. 12356;
    (iv) Review this Regulation and DoD guidelines for systematic 
declassification review; and
    (v) Conduct on-site reviews of the Information Security Program of 
each DoD Component that generates or handles classified information.
    (3) Information Requests. The Director of the ISOO is authorized to 
request information or material concerning the Department of Defense, as 
needed by the ISOO in carrying out its functions.
    (4) Coordination. Heads of DoD Components shall ensure that any 
significant requirements levied directly on the Component by the ISOO 
are brought to the attention of the Director of Security Plans and 
Programs, ODUSD(P).



Sec. 159a.92  Department of Defense.

    (a) Management Responsibility. (1) The DUSD(P) is the Senior DoD 
Information Security Authority having DoD-wide authority and 
responsibility to ensure effective and uniform compliance with and 
implementation of E.O. 12356 and its implementing ISOO Directive No. 1. 
As such, the DUSD(P) shall have primary responsibility for providing 
guidance, oversight and approval of policy and procedures governing the 
DoD Information Security Program. The DUSD(P) or his designee may 
approve waivers or exceptions to the provisions of this part to the 
extent such action is consistent with E.O. 12356 and ISOO Directive No. 
1.
    (2) The heads of DoD Components may approve waivers to the 
provisions of this part only as specifically provided for herein.
    (3) The Director, NSA/Chief, Central Security Service, under 32 CFR 
part 159, is authorized to impose special requirements with respect to 
the marking, reproduction, distribution, accounting, and protection of 
and access to classified cryptologic information. In this regard, the 
Director, NSA, may approve waivers or exceptions to these special 
requirements. Except as provided in Sec. 159a.6 the authority to lower 
any COMSEC security standards rests with the Secretary of Defense. 
Requests for approval of such waivers or exceptions to established 
COMSEC security standards which, if adopted, will have the effect of 
lowering such standards, shall be submitted to the DUSD(P) for approval 
by the Secretary of Defense.



Sec. 159a.93  DoD components.

    (a) General. The head of each DoD Component shall establish and 
maintain an Information Security Program designed to ensure compliance 
with the provisions of this part throughout the Component.
    (b) Military Departments. In accordance with 32 CFR part 159 the 
Secretary of each Military Department shall designate a Senior 
Information Security Authority who shall be responsible for complying 
with and implementing this part within the Department.
    (c) Other Components. In accordance with 32 CFR part 159, the head 
of each other DoD Component shall designate a Senior Information 
Security Authority who shall be responsible for complying

[[Page 862]]

with and implementing this Regulation within their respective Component.
    (d) Program Monitorship. The Senior Information Security Authorities 
designated under paragraphs (b) and (c) of this section, are responsible 
within their respective jurisdictions for monitoring, inspecting with or 
without prior announcement, and reporting on the status of 
administration of the DoD Information Security Program at all levels of 
activity under their cognizance.
    (e) Field Program Management. (1) Throughout the Department of 
Defense, the head of each activity shall appoint, in writing, an 
official to serve as security manager for the activity. This official 
shall be responsible for the administration of an effective Information 
Security Program in that activity with particular emphasis on security 
education and training, assignment of proper classifications, 
downgrading and declassification, safeguarding, and monitorship, to 
include sampling classified documents for the purpose of assuring 
compliance with this part.
    (2) Activity heads shall ensure that officials appointed as security 
managers either possess, or obtain within a reasonable time after 
appointment, knowledge of and training in the Information Security 
Program commensurate with the needs of their positions. The Director of 
Security Plans and Programs, ODUSD(P) shall, with the assistance of the 
Director, Defense Security Institute, develop minimum standards for 
training of activity security managers. Such training should result in 
appropriate certifications to be recorded in the personnel files of the 
individuals involved.
    (3) Activity heads shall ensure that officials appointed as security 
managers are authorized direct and ready access to the appointing 
official on matters concerning the Information Security Program. They 
also shall provide sufficient resources of time, staff, and funds to 
permit accomplishment of the security manager's responsibilities, to 
include meaningful oversight of the Information Security Program at all 
levels of the activity.



Sec. 159a.94  Information requirements.

    (a) Information Requirements. DoD Components shall submit on a 
fiscal year basis a consolidated report concerning the Information 
Security Program of the Component on SF 311, ``Agency Information 
Security Program Data,'' to reach the ODUSD(P) by October 20 of each 
year. SF 311 shall be completed in accordance with the instructions 
thereon and augmenting instructions issued by the ODUSD(P). The ODUSD(P) 
shall submit the DoD report (SF 311) to the ISOO by October 31 of each 
year. Interagency Report Control Number 0230-GSA-AN applies to this 
information collection system as well as to that contained in 
Sec. 159a.12.



Sec. 159a.95  Defense Information Security Committee.

    (a) Purpose. The Defense Information Security Committee (DISC) is 
established to advise and assist the DUSD(P) and the Director, Security 
Plans and Programs (ODUSD(P) in the formulation of DoD Information 
Security Program policy and procedures.
    (b) Direction and Membership. The DISC shall meet at the call of the 
DUSD(P) or the Director, Security Plans and Programs. It is comprised of 
the DUSD(P) as Chairman; the Director, Security Plans and Programs, as 
Vice Chairman; and the senior officials (designated in accordance with 
section E.3.a., DoD Directive 5200.1,\39\ or their representatives) 
responsible for directing and administering the Information Security 
Program of the OJCS, the Departments of the Army, Navy, and Air Force, 
the Defense Intelligence Agency, the Defense Nuclear Agency, the 
National Security Agency, and the Defense Investigative Service. Other 
DoD Components may be invited to attend meetings of particular interest 
to them.
---------------------------------------------------------------------------

    \39\ See footnote 1 to Sec. 159a.3

---------------------------------------------------------------------------

[[Page 863]]



                   Subpart O--Administrative Sanctions



Sec. 159a.97  Individual responsibility.

    All personnel, civilian or military, of the Department of Defense 
are responsible individually for complying with the provisions of this 
part.



Sec. 159a.98  Violations subject to sanctions.

    (a) DoD Military and civilian personnel are subject to 
administrative sanctions if they:
    (1) Knowingly and willfully classify or continue the classification 
of information in violation of E.O. 12356, any implementing issuances, 
or this part.
    (2) Knowingly, willfully, or negligently disclose to unauthorized 
persons information properly classified under E.O. 12356 or prior 
orders; or
    (3) Knowingly and willfully violate any other provision of E.O. 
12356, any implementing issuances or this part.
    (b) Sanctions include but are not limited to a warning notice, 
reprimand, termination of classification authority, suspension without 
pay, forfeiture of pay, removal or discharge, and will be imposed upon 
any person, regardless of office or level of employment, who is 
responsible for a violation specified under this paragraph as determined 
appropriate under applicable law and DoD regulations. Nothing in this 
part prohibits or limits action under the Uniform Code of Military 
Justice based upon violations of that Code.



Sec. 159a.99  Corrective action.

    The Secretary of Defense, the Secretaries of the Military 
Departments, and the heads of other DoD Components shall ensure that 
appropriate and prompt corrective action is taken whenever a violation 
under Sec. 159a.98(a) occurs or repeated administrative discrepancies or 
repeated disregard of requirements of this Regulation occur (see 
Sec. 159a.100). Commanders and supervisors, in consultation with 
appropriate legal counsel, shall utilize all appropriate criminal, 
civil, and administative enforcement remedies against employees who 
violate the law and security requirements as set forth in this part and 
other pertinent DoD issuances.



Sec. 159a.100  Administrative discrepancies.

    Repeated administrative discrepancies in the marking and handling of 
classified information and material such as failure to show 
classification authority; failure to apply internal classification 
markings; failure to adhere to the requirements of this part that 
pertain to dissemination, storage, accountability, and destruction, and 
that are determined not to constitute a violation under Sec. 159a.98(a) 
may be grounds for adverse administrative action including warning, 
admonition, reprimand or termination of classification authority as 
determined appropriate under applicable policies and procedures.



Sec. 159a.101  Reporting violations.

    (a) Whenever a violation under Sec. 159a.98(a)(2) occurs, the 
Director of Counterintelligence and Investigative Programs, ODUSD(P) 
shall be informed of the date and general nature of the occurrence 
including the relevent parts of this part, the sanctions imposed, and 
the corrective action taken. Whenever a violation under Sec. 159a.98(a) 
(1) or (3) occurs, the Director of Security Plans and Programs, OSUSD(P) 
shall be provided the same information. Notification of such violations 
shall be furnished to the Director of the ISOO in accordance with 
Sec. 5.4(d) of E.O. 12356 by the ODUSD(P).
    (b) Any action resulting in unauthorized disclosure of properly 
classified information that constitutes a violation of the criminal 
statutes and evidence reflected in classified information of possible 
violations of Federal criminal law by a DoD employee and of possible 
violations by any other person of those Federal criminal laws specified 
in guidelines adopted by the Attorney General shall be the subject of a 
report processed in accordance with DoD Directive 5210.50 and DoD 
Instruction 5240.4.
    (c) Any action reported under paragraph (b) of this section, shall 
be reported to the Attorney General by the General Counsel, Department 
of Defense.
    (d) Reports shall be made to appropriate counterintelligence, 
investigative, and personnel security authorities

[[Page 864]]

concerning any employee who is known to have been responsible for 
repeated security violations over a period of a year, for appropriate 
evaluation, including readjudication of the employee's security 
clearance.

    Appendix A to Part 159a--Equivalent Foreign and International Pact Organization Security Classifications    
----------------------------------------------------------------------------------------------------------------
             Country                  Top Secret            Secret           Confidential                       
----------------------------------------------------------------------------------------------------------------
Argentina.......................  Estrictamente       Secreto...........  Confidencial......  Reservado.        
                                   Secreto.                                                                     
Australia.......................  Top Secret........  Secret............  Confidential......  ..................
Austria.........................  Streng Geheim.....  Geheim............  Verschuluss.......  ..................
Belgium:                                                                                                        
    French......................  Tres Secret.......  Secret............  Confidentiel        Difusion.         
                                                                           Restreints.                          
    Flemish.....................  Zeer Geheim.......  Geheim............  Vertrouwelijk       Bepertke.         
                                                                           Verspreiding.                        
Bolivia.........................  Syoersecreto or     Secreto...........  Confidencial......  Resedrvado.       
                                   Muy Secreto.                                                                 
Brazil..........................  Ultra Secreto.....  Secreto...........  Confidencial......  Reservado.        
Cambodia........................  Tres Secret.......  Secret............  Secret/             ..................
                                                                           Confidential.                        
Canada..........................  Top Secret........  Secret............  Confidential......  Restricted.       
Chile...........................  Secreto...........  Secreto...........  Reservado.........  Reservado.        
Columbia........................  Ultrasecreto......  Secreto...........  Reservado           Confidencial.     
                                                                           Restringido.                         
Costa Rica......................  Alto Secreto......  Secreto...........  Confidencial......  ..................
Denmark.........................  Hojst Himmiligt...  Himmiligt.........  Fortroligt........  Til Tjenestebrug. 
Ecuador.........................  Secretisimo.......  Secreto...........  Confidencial......  Reservado.        
El Salvador.....................  Ultra Secreto.....  Secreto...........  Confidencial......  Reservado.        
Ethiopia........................  Yemlaz Birtou       Kilkil............  ..................  ..................
                                   Mistir.                                                                      
Finland.........................  Erittain Salainen.  Salainen..........  ..................  ..................
France..........................  Tres Secret.......  Secret Defense....  Confidentiel        Diffusion.        
                                                                           Defense                              
                                                                           Restreinte.                          
Germany.........................  Streng Geheim.....  Geheim............  Va-Vertraulich....  ..................
Greece..........................  Akpre Anopphton...  Anopphton.........  Emilieteytikon      Mepinpiemenhe.    
                                                                           Xpheere.                             
Guatemala.......................  Alto Secreto......  Secreto...........  Confidencial......  Reservado.        
Haiti...........................  ..................  Secret............  Confidential......  ..................
Honduras........................  Super Secreto.....  Secreto...........  Confidencial......  Reservado.        
Hong Kong.......................  Top Secret........  Secret............  Confidential......  Restricted.       
Hungary.........................  Szigoruan Titkos..  Titkos............  Bizalmas..........  ..................
India...........................  Top Secret........  Secret............  Confidential......  Restricted.       
Indonesia.......................  Sangat Rahasia....  Rahasia...........  Terbatas..........  ..................
Iran............................  Bekoli Serri......  Serri.............  Kheili Mahramaneh.  Mahramaneh.       
Iraq............................  (Absolutely         (Secret)..........  ..................  (Limited).        
                                   secret).                                                                     
Ireland Gaelic..................  Top Secret An-      Secret Sicreideach  Confidential Runda  Restricted        
                                   Sicreideach.                                                Srianta.         
Israel..........................  Sodi Beyoter......  Sodi..............  Shamur............  Mugbal.           
Italy...........................  Segretissimo......  Segreto...........  Riservatissimo....  Riservato.        
Japan...........................  Kimitsu...........  Gokuhi............  Hi Bugaihi........  Toriatsukaichui.  
Jordan..........................  Maktum Jiddan.....  Maktum............  Sirri.............  Mahdud.           
Korea...........................  ..................  ..................  ..................  ..................
Laos............................  Tres Secret.......  Secret............  Secret/             Difusion.         
                                                                           Confidentiel                         
                                                                           Restreinte.                          
Lebanon.........................  Tres Secret.......  Secret............  Confidentiel......  ..................
Mexico..........................  Alto Secreto......  Secreto...........  Confidencial......  Restringido.      
Netherlands.....................  Zeer Geheim.......  Geheim............  Confidentieel or    Dienstgeheim.     
                                                                           Vertrouwelijk.                       
New Zealand.....................  Top Secret........  Secret............  Condifential......  Dienstgeheim.     
Nicaragua.......................  Alto Secreto......  Secreto...........  Confidencial......  Reservado.        
Norway..........................  Strengt Hemmelig..  Hemmelig..........  Konfideneielt.....  Begrenset.        
Pakistan........................  Top Secret........  Secret............  Confidential......  Restricted.       
Paraguay........................  Secreto...........  Secreto...........  Confidencial......  Reservado.        
Peru............................  Estrictamente       Secreto...........  Condifencial......  Reservado.        
                                   Secreto.                                                                     
Philippines.....................  Top Secret........  Secret............  Confidential......  Restricted.       
Portugal........................  Muito Secreto.....  Secreto...........  Confidencial......  Reservado.        
Spain...........................  Maximo Secreto....  Secreto...........  Confidencial        Diffussion.       
                                                                           Limitada.                            
Sweden (Red Borders)............  Hemlig............  Hemlig............  Hemlig............  ..................
Switzerland.....................  (\1\).............  (\1\).............  (\1\).............  ..................
French..........................  Secret............  Secret............  Secret Exclusive    Reserve A L'Usage.
                                                                           Du.                                  
German..........................  Streng Geheim.....  Geheim............  Vertraulich Lichen  Nur Fur Dienst-   
                                                                           Gebrauch.                            
Italian.........................  Segreto...........  Segreto...........  Segreto Di          Ad Exclusive Uso. 
                                                                           Servizio.                            
Thailand........................  Lup Tisud.........  Lup Maag..........  Lup...............  Pok Pid.          
Turkey..........................  Cok Gizli.........  Gizli.............  Ozel..............  Hizmete Ozel.     
Union of South Africa:                                                                                          
    English.....................  Top Secret........  Secret............  Confidential......  Restricted.       
    Afrikaana...................  Uiters Geheim.....  Geheim............  Vertroulik........  Reperk.           

[[Page 865]]

                                                                                                                
United Arab Republic (Egypt)....  Top Secret........  Very Secret.......  Secret............  Official.         
----------------------------------------------------------------------------------------------------------------
\1\ Three languages. TOP SECRET has a registration number to distinguish from SECRET and CONFIDENTIAL.          


[[Page 866]]

[GRAPHIC] [TIFF OMITTED] TC23OC91.015

[54 FR 26959, June 27, 1989, as amended at 54 FR 31334, July 28, 1989]

[[Page 867]]

Appendix B to Part 159a--General Accounting Office Officials Authorized 
         To Certify Security Clearances (See Sec. 159a.53(b)(3))

    The Comptroller General, Deputy Comptroller General and Assistant 
Comptroller General and Assistants to the Comptroller General
    The General Counsel and Deputy General Counsel
    The Director and Deputy Director, Personnel; the Security Officer
    The Director and Deputy Director, Office of Internal Review
    The Director and Assistants to the Director of the Office of Program 
Planning and the Office of Policy
    The Director and Deputy Directors of the Community and Economic 
Development Division
    The Director, and Deputy Directors, Associate Directors, Deputy 
Associate Directors, Senior Group Directors, and the Assistant to the 
Director for Planning and Administration of the Energy and Minerals 
Division
    The Director, Deputy Directors, Associate Directors and Division 
Personnel Security Officer of the Human Resources Division
    The Directors, Deputy Directors, and Associate Directors, of the 
following Divisions:

Claims
Field Operations
Financial and General Management Studies
General Government
International
Logistics and Communications
Procurement and Systems Acquisition
Program Analysis Division

    Directors and Managers of International Division Overseas Offices as 
follows:

Director European Branch, Frankfurt, Germany
Director Far East Branch, Honolulu, Hawaii
Manager, Sub Office, Bangkok, Thailand

    Regional Managers and Assistsant Regional Managers of the Field 
Operations Division's Regional Offices as follows:

Atlanta, Georgia
Boston, Massachusetts
Chicago, Illinois
Cincinnati, Ohio
Dallas, Texas
Denver, Colorado
Detroit, Michigan
Kansas City, Missouri
Los Angeles, California
New York, New York
Norfolk, Virginia
Philadelphia, Pennsylvania
San Francisco, California
Seattle, Washington
Washington, D.C.

   Appendix C to Part 159a--Instructions Governing Use of Code Words, 
           Nicknames, and Exercise Terms (See Sec. 159a.54(j))

                             1. Definitions

    a. Using Component. The DoD Component to which a code word is 
allocated for use, and which assigns to the word a classified meaning, 
or which originates nicknames and exercise terms using the procedure 
established by the Joint Chiefs of Staff.
    b. Code Word. A single word selected from those listed in Joint 
Army-Navy-Air Force Publication (JANAP) 299 and later volumes, and 
assigned a classified meaning by appropriate authority to insure proper 
security concerning intentions, and to safeguard information pertaining 
to actual military plans or operations classified as Confidential or 
higher. A code word shall not be assigned to test, drill or exercise 
activities. A code word is placed in one of three categories:
    (1) Available. Allocated to the using component. Available code 
words individually will be unclassified until placed in the active 
category.
    (2) Active. Assigned a classified meaning and current.
    (3) Canceled. Formerly active, but discontinued due to compromise, 
suspected compromise, cessation, or completion of the operation to which 
the code word pertained. Canceled code words individually will be 
unclassified and remain so until returned to the active category.
    c. Nickname. A combination of two separate unclassified words which 
is assigned an unclassified meaning and is employed only for 
unclassified administrative, morale, or public information purposes.
    d. Exercise Term. A combination of two separate unclassified words, 
normally unclassified, used exclusively to designate a test, drill, or 
exercise. An exercise term is employed to preclude the possibility of 
confusing exercise directions with actual operations directives.

                         2. Policy and Procedure

    a. Code Words. The Joint Chiefs of Staff are responsible for 
allocating words or blocks of code words from JANAP 299 to DoD 
Components. DoD Components may request allocation of such code words as 
required and may reallocate available code words within their 
organizations, in accordance with individual policies and procedure, 
subject to applicable rules set forth herein.
    (1) A permanent record of all code words shall be maintained by the 
Joint Chiefs of Staff.
    (2) The using Component shall account for available code words and 
maintain a record of each active code word. Upon being canceled, the 
using component shall maintain

[[Page 868]]

the record for 2 years; thence the record of each code word may be 
disposed of in accordance with current practices, and the code word 
returned to the available inventory.
    b. Nicknames
    (1) Nicknames may be assigned to actual events, projects, movement 
of forces, or other nonexercise activities involving elements of 
information of any classification category, but the nickname, the 
description or meaning it represents, and the relationship of the 
nickname and its meaning must be unclassified. A nickname is not 
designed to achieve a security objective.
    (2) Nicknames, improperly selected, can be counterproductive. A 
nickname must be chosen with sufficient care to ensure that it does not:
    (a) Express a degree of bellicosity inconsistent with traditional 
American ideals or current foreign policy;
    (b) Convey connotations offensive to good taste or derogatory to a 
particular group, sect, or creed; or,
    (c) Convey connotations offensive to our allies or other Free World 
nations.
    (3) The following shall not be used as nicknames:
    (a) Any two-word combination voice call sign found in JANAP 119 or 
ACP 110. (However, single words in JANAP 119 or ACP 110 may be used as 
part of a nickname if the first word of the nickname does not appear in 
JANAP 299 and later volumes.)
    (b) Combination of words including word ``project,'' ``exercise,'' 
or ``operation.'' (The word ``project'' often is used as the first or 
second word with an unclassified nickname originating outside the 
Department of Defense.)
    (c) Words that may be used correctly either as a single word or as 
two words, such as ``moonlight.''
    (d) Exotic words, trite expressions, or well-known commercial 
trademarks.
    (4) The Joint Chiefs of Staff shall:
    (a) Establish a procedure by which nicknames may be authorized for 
use by DoD Components.
    (b) Prescribe a method for the using Components to report nicknames 
used.
    (5) The heads of DoD Components shall:
    (a) Establish controls within their Components for the assignment of 
nicknames authorized under subparagraph 2.b.(4)(a), above.
    (b) Under the procedures established, advise the Joint Chiefs of 
Staff of nicknames as they are assigned.
    c. Exercise Term
    (1) Unclassified exercise terms may be assigned only to tests, 
drills, or exercises for the purpose of emphasizing that the event is a 
test, drill, or exercise and not an actual operation. However, the 
description or meaning it represents, and the relationship of the 
exercise term and its meaning can be classified or unclassified. A 
classified exercise term is not authorized.
    (2) Selection of exercise terms will follow the same guidance as 
contained in subparagraphs 2.b.(2) and (3), above.
    (3) The Joint Chiefs of Staff shall:
    (a) Establish a procedure by which exercise terms may be authorized 
for use by DoD Components.
    (b) Prescribe a method for using Components to report exercise terms 
used.
    (4) The heads of DoD Components shall:
    (a) Establish controls within their Component for the assignment of 
exercise terms authorized under subparagraph 2.c.(3), above.
    (b) Under the procedures established, advise the Joint Chiefs of 
Staff of exercise terms as they are assigned.

           3. Assignment of Classified Meanings to Code Words

    a. The DoD Component responsible for the development of a plan or 
the execution of an operation shall be responsible for determining 
whether to assign a code word.
    b. Code words shall be activated for the following purposes only:
    (1) To designate a classified military plan or operation;
    (2) To designate classified geographic locations in conjunction with 
plans or operations referred to in subparagraph 3.b.(1), above; or,
    (3) To cancel intentions in discussions and messages or other 
documents pertaining to plans, operations, or geographic locations 
referred to in subparagraphs 3.b.(1) and (2), above.
    c. The using Component shall assign to a code word a specific 
meaning classified Secret or Confidential. Code words shall not be used 
to cover unclassified meanings. The assigned meaning need not in all 
cases be classified as high as the overall classification assigned to 
the plan or operation. Top Secret code words may be issued only with 
DUSD(P) or DoD Component head approval.
    d. Code words shall be selected by each using Component in such 
manner that the word used does not suggest the nature of its meaning.
    e. A code word shall not be used repeatedly for similar purposes; 
that is, if the initial phase of an operation is designated ``Meaning,'' 
succeeding phases shall not be designated ``Meaning II'' and ``Meaning 
III,'' but should have different code words.
    f. Each DoD Component shall establish policies and procedures for 
the control and assignment of classified meanings to code words, subject 
to applicable rules set forth herein.

 4. Notice of Assignment, Dissemination, and Cancelation of Code Words 
                              and Meanings

    a. The using Component shall promptly notify the Joint Chiefs of 
Staff when a code

[[Page 869]]

word is made active, indicating the word, and its classification. 
Similar notice shall be made when any changes occur, such as the 
substitution of a new word for one previously placed in use.
    b. The using Component is responsible for further dissemination of 
active code words and meanings to all concerned activities, to include 
classification of each.
    c. The using Component is responsible for notifying the Joint Chiefs 
of Staff of canceled code words. This cancellation report is considered 
final action, and no further reporting or accounting of the status of 
the canceled code word will be required.

             5. Classification and Downgrading Instructions

    a. During the development of a plan, or the planning of an operation 
by the headquarters of the using Component, the code word and its 
meaning shall have the same classification. When dissemination of the 
plan to other DoD Components or to subordinate echelons of the using 
Component is required, the using Component may downgrade the code words 
assigned below the classification assigned to their meanings in order to 
facilitate additional planning implementation, and execution by such 
other Components or echelons, but code words shall, at a minimum, be 
classified Confidential.
    b. A code word which is replaced by another code word due to a 
compromise or suspected compromise, or for any other reason, shall be 
canceled, and classified Confidential for a period of 2 years, after 
which the code word will become unclassified.
    c. When a plan or operation is discontinued or completed, and is not 
replaced by a similar plan or operation but the meaning cannot be 
declassified, the code word assigned thereto shall be canceled and 
classified Confidential for a period of 2 years, or until the meaning is 
declassified, whichever is sooner, after which the code word will become 
unclassified.
    d. In every case, whenever a code word is referred to in documents, 
the security classification of the code word shall be placed in 
parentheses immediately following the code word, for example, ``Label 
(C).''
    e. When the meaning of a code word no longer requires a 
classification, the using Component shall declassify the meaning and the 
code word and return the code word to the available inventory.

                          6. Security Practices

    a. The meaning of a code word may be used in a message or other 
document, together with the code word, only when it is essential to do 
so. Active code words may be used in correspondence or other documents 
forwarded to addresses who may or may not have knowledge of the meaning. 
If the context of a document contains detailed instructions or similar 
information which indicates the purpose or nature of the related 
meaning, the active code word shall not be used.
    b. In handling correspondence pertaining to active code words, care 
shall be used to avoid bringing the code words and their meanings 
together. They should be handled in separate card files, catalogs, 
indexes, or lists, enveloped separately, and dispatched at different 
times so they do not travel through mail or courier channels together.
    c. Code words shall not be used for addresses, return addresses, 
shipping designators, file indicators, call signs, identification 
signals, or for other similar purposes.

                             7. Former Words

    All code words formerly categorized as ``inactive'' or ``obsolete'' 
shall be placed in the current canceled category and classified 
Confidential. Unless otherwise restricted, all code words formerly 
categorized as ``canceled'' or ``available'' shall be individually 
declassified. All records associated with such code words may be 
disposed of in accordance with current practices, provided such records 
have been retained at least 2 years after the code words were placed in 
the former categories of ``inactive,'' ``obsolete,'' or ``canceled.''

                            8. Non-DoD Words

    Nicknames or code words originating outside of the Department of 
Defense that are jointly used by the originating organization and the 
Department of Defense shall be registered with the DUSD(P) to prevent 
confusion with DoD-originated words.

      Appendix D to Part 159a--Federal Aviation Administration Air 
   Transportation, Security Field Offices (See Sec. 159a.59(c)(1)(i))

                                                                        
                                                                        
                City                                 State              
                                                                        
Anchorage                             Alaska                            
Atlanta                               Georgia                           
Baltimore                             Maryland                          
Boston                                Massachusetts                     
Chicago (O'Hare)                      Illinois                          
Cleveland                             Ohio                              
Dallas                                Texas                             
Denver                                Colorado                          
Detroit                               Michigan                          
Honolulu                              Hawaii                            
Houston                               Texas                             
Kansas City                           Missouri                          
Las Vegas                             Nevada                            
Los Angeles                           California                        
Miami                                 Florida                           
Minneapolis                           Minnesota                         
Newark                                New Jersey                        
New Orleans                           Louisiana                         
New York (John F. Kennedy)            New York                          
New York (La Guardia)                 New York                          
Philadelphia                          Pennsylvania                      
Pittsburgh                            Pennsylvania                      
Portland                              Oregon                            

[[Page 870]]

                                                                        
St. Louis                             Missouri                          
San Antonio                           Texas                             
San Diego                             California                        
San Francisco                         California                        
San Juan                              Puerto Rico                       
Seattle                               Washington                        
Tampa                                 Florida                           
Tucson                                Arizona                           
Washington (Dulles)                   Washington, DC                    
Washington (National)                 Washington, DC                    
                                                                        

   Appendix E to Part 159a--Transportation Plan (See Sec. 159a.57(e))

    The provisions of Sec. 159a.57(e) of this part require that 
transmission instructions or a separate transportation plan be included 
with any contract, agreement or other arrangement involving the release 
of classified material to foreign entities. The transportation plan is 
to be submitted to and approved by applicable DoD authorities. As a 
minimum, the transportation plan shall include the following provisions:
    a. A description of the classified material together with a brief 
narrative as to where and under what circumstances transfer of custody 
will occur;
    b. Identification, by name or title, of the designated 
representative of the foreign recipient government or international 
organization who will receipt for and assume security responsibility for 
the U.S. classified material (person(s) so identified must be cleared 
for access to the level of the classified material to be shipped);
    c. Identification and specific location of delivery points and any 
transfer points;
    d. Identification of commercial carriers and freight forwarders or 
transportation agents who will be involved in the shipping process, the 
extent of their involvement, and their security clearance status;
    e. Identification of any storage or processing facilities to be used 
and, relative thereto, certification that such facilities are authorized 
by competent government authority to receive, store, or process the 
level of classified material to be shipped;
    f. When applicable, the identification, by name or title, of 
couriers and escorts to be used and details as to their responsibilities 
and security clearance status;
    g. Description of shipping methods to be used as authorized by the 
provisions of subpart I, together with the identification of carriers 
(foreign and domestic);
    h. In those cases when it is anticipated that the U.S. classified 
material or parts thereof may be returned to the United States for 
repair, service, modification, or other reasons, the plan must require 
that shipment shall be via a carrier of U.S. or recipient government 
registry, handled only by authorized personnel, and that the applicable 
Military Department (for foreign military sales (FMS)) or Defense 
Investigative Service (for commercial sales) will be given advance 
notification of estimated time and place of arrival and will be 
consulted concerning inland shipment;
    i. The plan shall require the recipient government or international 
organization to examine shipping documents upon receipt of the 
classified material in its own territory and advise the responsible 
Military Department in the case of FMS, or Defense Investigative Service 
in the case of commercial sales, if the material has been transferred 
enroute to any carrier not authorized by the transportation plan; and
    j. The recipient government or international organization also will 
be required to inform the responsible Military Department or the Defense 
Investigative Service promptly and fully of any known or suspected 
compromise of U.S. classified material while such material is in its 
custody or under its cognizance during shipment.

[[Page 871]]



                    SUBCHAPTER F--DEFENSE CONTRACTING





PART 160--DEFENSE ACQUISITION REGULATORY SYSTEM--Table of Contents




Sec.
160.1  Purpose.
160.2  Applicability.
160.3  Definitions.
160.4  Policy and procedures.

    Authority: 5 U.S.C. 301; 10 U.S.C. 137.

    Source: 43 FR 15150, Apr. 11, 1978, unless otherwise noted.



Sec. 160.1  Purpose.

    This part establishes policy and procedures for the management and 
operation of the Department of Defense acquisition regulatory system.



Sec. 160.2  Applicability.

    The provisions of this part apply to the Office of the Secretary of 
Defense, the Organization of the Joint Chiefs of Staff, the Military 
Departments and the Defense Agencies. These provisions also apply to 
other Federal agencies that are directed by the Office of Federal 
Procurement Policy (OFPP), Office of Management and Budget, to comply 
with the provisions of this part.



Sec. 160.3  Definitions.

    (a) Acquisition. Any relationship entered into to acquire property 
or services for the direct benefit or use of the Department of Defense 
to include the management and business functions and disciplines 
involved in establishing and continuing the relationship.
    (b) Contracts. A function including tasks, skills and activities 
essential in conducting contractual relationships in the acquisition of 
property and services by the Department of Defense. The term 
``contracts'' shall replace the term ``procurement'' as used in the 
context of an acquisition function throughout the Department.
    (c) Procurement. The term ``procurement'' shall not be used to 
identify functions of the Department of Defense to acquire property and 
services except as relates to the budgetary process.



Sec. 160.4  Policy and procedures.

    (a) Defense Acquisition Regulatory System. The Defense Acquisition 
Regulatory System (DARS) is a system of policies and regulations to 
guide managers in the conduct of DoD acquisition activities and also to 
provide the detailed functional regulations required to govern DoD 
contractual actions in accordance with applicable laws and the need for 
efficiency. The DARS focuses on the business management needs at the 
operating levels and on the Government's actions at the interface with 
the marketplace in the acquisition of services and materiel. Attention 
shall be given to the unique business demands in the area of major 
system acquisitions consistent with policies set forth in 32 CFR part 
213, DoD Directive 5000.2 \1\ and OMB Circular A-109.
---------------------------------------------------------------------------

    \1\ Filed as part of original. Copies may be obtained, if needed, 
from the U.S. Naval Publications and Forms Center, 5801 Tabor Avenue, 
Philadelphia, Pa. 19120. Attention: Code 301.
---------------------------------------------------------------------------

    (1) The DARS shall be managed as a system of integrated, coordinated 
policies and regulations, responsive to the needs of the Department of 
Defense and to the provisions of the Federal Procurement Regulatory 
System. Where feasible, the DARS will achieve uniform policies with the 
Federal Procurement Regulation.
    (2) The Deputy Under Secretary of Defense for Research and 
Engineering (Acquisition Policy), OUSD/R&E, is responsible for the DARS 
and for the development and implementation of the necessary policy and 
procedures of the regulatory system.
    (b) DARS Regulations. DARS policy and procedures shall be published 
in the Defense Acquisition Regulation (DAR) and in DoD Directives, 
Instructions, Circulars and Manuals as appropriate to the action. The 
DAR replaces the Armed Services Procurement Regulation (ASPR), and all 
laws, policy and procedures applicable to the ASPR apply equally to the 
DAR except as

[[Page 872]]

those policies and procedures not directed by law are changed by the 
provisions of this part. Effective with the issue of this part, the ASPR 
is redesignated as the DAR and all policies and procedures continue in 
force.
    (c) Defense Acquisition Regulatory Council. The Defense Acquisition 
Regulatory Council (DARC) is established to support the Council Director 
in the management of the DARS and in the development and implementation 
of required policy and procedures. The DARC includes all functions 
formerly performed by the Armed Services Procurement Regulation 
Committee.
    (1) Council membership. The DARC membership shall include a Policy 
and a Legal representative frome ach of the Military Departments and 
from the Defense Logistics Agency (DLA). Each Military Department Policy 
member shall be appointed by the Assistant Secretary having 
responsibility for the acquisition function in the Department. The Legal 
representative shall be appointed by the Department General Counsel. The 
DLA members shall be appointed by the Director, DLA. Each appointment to 
the Council shall be made for a minimum term of 2 years and a maximum of 
4 years as a principal full-time assignment approved by the Deputy Under 
Secretary of Defense (Acquisition Policy). Members appointed to the DARC 
shall have extensive acquisition experience in order to deal with the 
matters to come before the Council. Policy members shall be authorized 
to develop and state the final positions of their respective 
organizations on all matters before the Council. Each member shall have 
a TOP SECRET security clearance.
    (2) Council Director. The Director (Contracts and System 
Acquisition), OUSD/R&E, shall appoint the Council Director. Such 
appointment shall be subject to the approval of the Deputy Under 
Secretary of Defense (Acquisition Policy).
    (3) Council Executive Secretary. The Executive Secretary, DARC, 
shall be appointed by and serve under the direction of the Council 
Director.
    (d) Operation of the DARC. The Council shall operate under the 
direction of the Council Director to develop and implement acquisition 
policy and procedures.
    (1) Council activities shall be conducted according to rules and 
procedures established by the Council Director within the policy 
guidance issued by the Director (Contracts and Systems Acquisition), 
OUSD/R&E.
    (2) The DARC shall consider all matters determined by the Council 
Director to be within the scope of the Council's responsibilities.
    (3) Substantive changes to DARS policy and procedures may be 
proposed by submitting appropriate recommendations to include specific 
regulatory language to the Director (Contracts and System Acquisition), 
through the following officials. Proposed routine administrative changes 
may be submitted directly to the Council Director.
    (i) DOD organizations. The Military Departments, the Defense 
Agencies and the Office of the Joint Chiefs of Staff shall submit 
recommendations through a designated senior official responsible for 
acquisition policy matters, OSD staffs shall submit recommendations 
through the staff principals.
    (ii) Federal agencies. Other Federal agencies, required by OFPP to 
conduct acquisition functions in accordance with DARS policy, shall 
submit proposed changes through a senior agency official designated by 
the agency head to represent the agency on all matters involving the 
DARS. The designated official shall be authorized to communicate 
directly with the DARC and to give final coordination for the agency.
    (iii) Private sector. Private sector entities with an interest in 
DARS policy will submit proposed changes directly. Industry associations 
will designate an individual to the Council Director and establish 
procedures for the individual to represent the association in commenting 
on DARS policy actions prior to final action by the Council. The 
procedures will provide for the completion of industry actions with the 
Council on a schedule not to exceed 60 days.
    (4) The Council Director is authorized to establish working groups 
to support the Council in dealing with issues in specialized areas. The 
Council Director will request the participation of representatives with 
the required expertise from OSD staff elements, Military

[[Page 873]]

Departments and Defense Agencies. Working groups will be assigned 
specific tasks by the Council Director to be completed on a schedule 
established with the task assignment.
    (5) The Council Director is authorized to designate a Military 
Department of DLA to be the lead agency in developing a specific policy 
or procedure for the DARS. The Council Director shall make the 
assignment through the Policy member of the designated lead agency. The 
lead agency shall develop the proposed language for the DARS, complete 
the coordination requested by the Council Director, document 
nonconcurrences together with the position of the lead agency, and 
submit the completed action to the Council Director through the lead 
agency's Policy member. The procedure for accomplishing the task shall 
be determined by the lead agency. DOD activities shall provide support 
as requested by the lead agency.
    (6) The Council Director shall establish schedules for the 
completion of each case before the Council based on the needs and 
urgency of the individual cases. Schedules shall require completion of 
the Council's action in a period not to exceed 120 days independent of 
industry coordination, except in specific cases where the Council 
Director determines an extended schedule is required. In such cases, the 
schedule will be approved by the Deputy Under Secretary of Defense 
(Acquisition Policy) or his designated representative.
    (7) On matters of major policy or issues where a consensus of the 
Policy members has not been achieved after a reasonable period of 
debate, the Council Director shall present the Departmental and Agency 
positions to the Deputy Under Secretary (Acquisition Policy), or his 
designated representative for resolution after consultation with the 
appropriate senior officials of the Military Departments and DLA. The 
decision of the Deputy Under Secretary of Defense (Acquisition Policy), 
or his designated representative shall be implemented without further 
coordination.
    (8) The Council Director shall require summary minutes of Council 
meetings to be maintained as a permanent record by the Executive 
Secretary. Minutes will clearly document the positions of the 
participating organizations on matters before the Council. The positions 
stated by other organizations shall be documented when in disagreement 
with the final decision.
    (9) The Council Director shall report periodically to the Deputy 
Under Secretary of Defense (Acquisition Policy) on specific activities 
of the Council.
    (e) Supplementing Instructions. Additional policies and procedures 
essential to the operation of the DARS shall be issued by the Under 
Secretary of Defense for Research and Engineering.



PART 162--PRODUCTIVITY ENHANCING CAPITAL INVESTMENT (PECI)--Table of Contents




Sec.
162.1  Purpose.
162.2  Applicability and scope.
162.3  Definitions.
162.4  Policy.
162.5  Responsibilities.
162.6  Procedures.
162.7  Information requirements.

Appendix A to Part 162--Reporting Procedures

    Authority: 10 U.S.C. 136: E.O. 12367, 3 CFR, 1988 Comp., p. 566.

    Source: 56 FR 50271, Oct. 4, 1991, unless otherwise noted.



Sec. 162.1  Purpose.

    This part:
    (a) Updates policy, responsibilities, procedures, and guidance for 
the PECI process under DoD Directive 5010.31.\1\
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    (b) Authorizes the publication of DoD 5010.36 36-H- \2\ 
``Productivity Enhancing Capital Investment (PECI) Handbook,'' 
consistent with DoD 5025.1-M.\3\
---------------------------------------------------------------------------

    \2\ Copies will be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
    \3\ See footnote 1 to Sec. 162.1(a).
---------------------------------------------------------------------------



Sec. 162.2  Applicability and scope.

    This part.
    (a) Applies to the Office of the Secretary of Defense (OSD); the 
Military Departments; Chairman, Joint Chiefs

[[Page 874]]

of Staff and the Joint Staff; the Defense Agencies; and the DoD Field 
Activities (hereafter referred to collectively as the ``DoD 
Components'').
    (b) Encompasses the acquisition of equipment and facilities to 
improve the following:
    (1) Productivity, quality, and processes of DoD Components including 
major facilities, equipment, or process modernization.
    (2) Performance of individual jobs, tasks, procedures, operations, 
and processes.
    (c) Encompasses PIF investments at appropriated and industrially 
funded activities, if they are not participating in the Defense Business 
Operations Fund. For industrially funded activities, projects may be 
submitted for PIF on an exception basis; primarily, this includes 
facilities, multi-function projects, prototypes, demonstrations, and 
cross-service initiatives. Investments at Government-owned, contractor-
operated (GOCO) facilities are limited to those for which the Department 
of Defense has responsibility to provide equipment or facilities and 
from which productivity benefits can be recovered within existing 
contractual provisions.



Sec. 162.3  Definition.

    (a) Capital Investment. The acquisition, installation, 
transportation, and other costs needed to place equipment or facilities 
in operation meeting DoD capitalization requirements.
    (b) Economic Life. The time period over which the benefits to be 
gained from a project may reasonably be expected to accrue to the 
Department of Defense.
    (c) Internal Rate of Return (IRR). The discount rate that equates 
the present value of the future cash inflows, e.g. savings and cost 
avoidances, with the present value costs of an investment.
    (d) Life-Cycle Savings. The estimated cumulative budgetary savings 
expected over the life of the project.
    (e) Net Present Value of Investment. The difference between the 
present value benefit and the present value cost at a given discount 
rate.
    (f) Off-the-Shelf. Equipment that is readily available through 
Government or commercial sources or that can be fabricated through 
combination or modification of existing equipment.
    (g) Pay-Back Period. The number of years required for the cumulative 
savings to have the same value as the investment cost.
    (h) PECI Benefits. Benefits resulting from PECIs are classified as 
savings or as cost avoidance:
    (1) Savings. Benefits that can be precisely measured, quantified, 
and placed under management control at time of realization. Savings can 
be reflected as specific reductions in the approved program or budget, 
after they have been achieved. Examples include costs for manpower 
authorizations and or funded work-year reductions, reduced or eliminated 
operating costs (utilities, travel, and repair), and reduced or 
eliminated parts and contracts.
    (2) Cost-Avoidance. Benefits from actions that obviate the 
requirements for an increase in future levels of manpower or costs that 
would be necessary, if present management practices were continued. The 
effect of cost-avoidance savings is the achievement of a higher level of 
readiness or increased value (quantity, quality or timeliness) of output 
at level staffing cost or the absorption of a growing work load at the 
same level of staffing or cost.
    (i) Post-Investment Assessment (PIA). A PIA is conducted by DoD 
Components to establish accountability and provide information to 
improve future investment strategies.
    (j) Productivity. The efficiency with which resources are used to 
provide a government service or product at specified levels of quality 
and timeliness.
    (k) Productivity Enhancement (or Productivity Improvement). A 
decrease in the unit cost of products and services delivered with equal 
or better levels of quality and timeliness.
    (l) Productivity Enhancing Capital Investment (PECI). Equipment or 
facility funding that shall improve Government service, products, 
quality, or timeliness. PECI projects are funded using PIF, PEIF, and 
CSI programs. These programs are defined as follows:
    (1) Productivity Investment Fund (PIF). PIF projects cost over 
$100,000 and must amortize within 4 years from the date they become 
operational. In FY 1994 the threshold changes to $150,000.

[[Page 875]]

    (2) Productivity Enhancing Incentive Fund (PEIF). PEIF projects cost 
under $100,000 and are expected to amortize within 2 years of the date 
they become operational. In FY 1994 the limit changes to $150,000.
    (3) Component-Sponsored Investment (CSI). CSI projects are fast pay-
back or high interest investments that may have different DoD Component 
selection criteria than those specified for PIF or PEIF projects.
    (m) Quality. The extent to which a product or service meets customer 
requirements and customer expectations.



Sec. 162.4  Policy.

    It is DoD Policy that:
    (a) The PECI program shall be an integral part of DoD Component 
investment planning and of the Defense Planning, Programming, and 
Budgeting System (PPBS) DoD Instruction 7045.7.\4\ PECI planning shall 
include the productivity investment fund (PIF), the productivity 
enhancing incentive fund (PEIF), and component-sponsored investments 
(CSIs). The PECI program is a major DoD strategy to achieve productivity 
goals under E.O. 12637.\5\
---------------------------------------------------------------------------

    \4\ See footnote 1 to Sec. 162.1(a).
    \5\ See footnote 1 to Sec. 162.1(a).
---------------------------------------------------------------------------

    (b) PECI projects shall be selected to improve quality and 
productivity, or to reduce unit cost of outputs in defense operations. 
PECI projects shall be evaluated and approved for funding based on 
recognized principles of economic analysis. Each PECI project shall be 
subject to all restrictions established by public law, DoD policy, and 
other regulatory constraints.
    (c) DoD personnel at all levels shall be encouraged to seek out and 
identify opportunities for quality and productivity improvement. Those 
efforts shall be supported by using the PECI as a means of financing the 
improvements. The PECI Program shall provide incentives for 
participation, supported by the financial management system and 
policies.
    (d) Individuals or groups who successfully identify PECI 
opportunities that result in significant savings or improvements in 
quality or productivity or who aggressively promote PECI incentives 
within their organizations should be recognized through the DoD 
Incentive Awards Program, DoD Instruction 5120.16,\6\ the Secretary of 
Defense Productivity Excellence Awards Program, performance appraisal, 
or other appropriate means. All these savings derived through PECI will 
remain with the originating DoD Component. As an incentive a portion of 
these savings, when possible, should remain at the submitting activity.
---------------------------------------------------------------------------

    \6\ See footnote 1 to Sec. 162.1(a).
---------------------------------------------------------------------------

    (e) Funds provided through FY 1993 from the centrally managed OSD 
PIF may not be reprogrammed for non-PIF purposes without prior approval 
of the Assistant Secretary of Defense (Force Management and Personnel) 
(ASD(FM&P)). The Heads of DoD Components shall monitor obligation rates 
to ensure PIF projects are executed quickly. If project funding cannot 
be obligated within the specified fiscal year(s) for the type of 
funding, the Head of the DoD Component must reprogram PIF funds to 
alternate approved PIF projects. The PIF projects shall be monitored to 
ensure timely implementation and to validate savings through the 
amortization period. The PECIs are subject to audit as established by 
DoD Instruction 7600.2 \7\ (reference (g)) policy.
---------------------------------------------------------------------------

    \7\ See footnote 1 to Sec. 162.1(a).
---------------------------------------------------------------------------



Sec. 162.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Force Management and 
Personnel (ASD (FM&P)) shall:
    (1) Develop policies and guidance for the overall DoD PECI program.
    (2) Maintain oversight of the PECI program to ensure implementation 
of this instruction. Through FY 1993 that oversight includes total 
process control and coordination of PIF actions to identify, select and 
approve, reprogram, and disapprove projects. Starting FY 1994 and ASD 
(FM&P) shall retain central oversight of the PECI program which is 
decentralized to the Components.
    (3) Evaluate program results and training requirements and provide 
additional guidance, as necessary.

[[Page 876]]

    (4) Develop, maintain, and publish a DoD 5010.36-H consistent with 
DoD 5025.1-M \8\
---------------------------------------------------------------------------

    \8\ See footnote 1 to Sec. 162.1(a).
---------------------------------------------------------------------------

    (5) Coordinate PECI efforts with the Heads of the DoD Components on 
matters that affect their particular areas of responsibility.
    (6) Use the Defense Productivity Program Office (DPPO) to:
    (i) Provide technical guidance and support for PECI efforts.
    (ii) Monitor and evaluate DoD Component PECI efforts.
    (iii) Ensure compliance with DoD Directive 7750.5 \9\
---------------------------------------------------------------------------

    \9\ See footnote 1 to Sec. 162.1(a).
---------------------------------------------------------------------------

    (b) The Inspector General of the Department of Defense (IG, DoD) 
shall provide policy and guidance for the audit of the PECI and 
incorporate the requirement for audit into audit planning and program 
documents.
    (c) The Heads of the DoD Components shall:
    (1) Develop and sustain a formal PECI program that:
    (i) Emphasizes and encourages the improvement of day-to-day 
operations through PECI funding.
    (ii) Provides motivation and opportunities for personnel, at all 
levels, to participate in the identification, documentation, and 
implementation of PECI proposals.
    (iii) Includes PIF, PEIF, and CSI efforts, as appropriate.
    (iv) Reviews and approves submitted projects, broadens project 
applicability when reasonable, applies off-the-shelf technology, and 
integrates capital investment planning into the PPBS.
    (2) Designate an official to be the central point of contact (POC) 
who shall oversee and monitor the PECI program.
    (3) Establish procedures ensuring that the policies contained in 
Sec. 162.4, above, are adhered to.



Sec. 162.6  Procedures.

    The following procedures shall be followed by the DoD Components in 
the identification, documentation, selection, and financing of PECI 
projects:
    (a) Document each PECI project to ensure that it is:
    (1) A desirable action in accordance with the DoD Component's long-
range planning and programing objectives, quality objectives, and 
customer and/or user satisfaction.
    (2) Needed to perform and improve valid operations, functions, or 
services (as established by assigned missions and taskings) that cannot 
be performed as effectively or economically by other means, such as the 
use of existing facilities, methods, processes, or procedures.
    (3) Justified on the basis of a valid economic analysis done in 
accordance with DoD Instruction 7041.3.
    (4) Validated as to reasonableness, completeness, and correct 
appropriation.
    (5) Classified properly as having savings or cost avoidance benefits
    (b) Include resources for PECI in programming documents and budget 
submissions. The level of funding shall be established under quality and 
productivity plans and goals established by the Component.
    (c) Use guidelines for project documentation, pre-investment 
analysis, financing, and post-investment accountability of PECI 
projects, when DoD 5010.36-H is published.
    (d) Classify PECI projects for financing and aggregated reporting as 
follows:
    (1) PIF projects. PIF projects are competitively selected from 
candidate proposals and financed through traditional budget 
appropriation processes from funds set aside for this purpose. PIF 
projects must cost over $100,000 and must amortize within 4 years from 
the date that they become operational. Both equipment and facilities 
investments that conform to public law, or DoD policies governing their 
qualification, may be included. Projects may include a function at 
several activities or locations and be Service-wide or Agency-wide. In 
FY 1994 the threshold will change to $150,000.
    (2) PEIF projects. PEIF projects are financed from the DoD Component 
accounts established in annual appropriations and are expected to 
amortize within 2 years of the date they become operational. Funding for 
PEIF projects shall be included in the DoD Component annual 
appropriations as a single

[[Page 877]]

amount to cover projects, as they are proposed throughout the budget 
year. PEIF projects cannot exceed $100,000 or cost limitations 
established by the OSD (whichever is greater) and are limited to 
facility modification and acquisition of ``off-the shelf'' equipment 
requiring little or no modification before use. In FY 1994 the limit 
changes to $150,000. Justification for those projects shall be based on 
the potential to improve quality and productivity that is realized 
through improvements in operating methods, quality, processes, or 
procedures.
    (3) CSI. CSI projects are investments financed from the DoD 
Component accounts that may have longer amortization periods than the 
PEIF and may have different DoD Component cost or benefit criteria than 
those specified for PIF projects. The CSI projects shall be identified 
and included in the DoD Component's annual budget.



Sec. 162.7  Information requirements.

    (a) DoD Components shall submit to the ASD (FM&P), by December 15th 
of each year, an annual status report on all PECI programs as outlined 
in appendix A to this part. The DoD Components shall maintain the data 
at a central point to support reporting requirements.
    (b) The Summary Report, ``PECI Program Status,'' is assigned Report 
Control Symbol FM&P (A) 1561, in accordance with DoD Directive 7750.5.

               Appendix to Part 162--Reporting Procedures

                               A. General

    The PECI reporting requirements provide the OSD with summary 
information required to provide program accountability, and satisfy the 
congressional concerns on program management. Information may be 
submitted in memorandum, letter, or other acceptable form.

                       B. Information Requirements

    1. PIF. Each DoD Component that has a funded PIF project must 
annually report summary PIF information. The information required for 
each project follows:
    a. Project Identification. Provide the 11-digit code for each 
project that has been approved for desired funding, such as follows:
    (1) A92BAxxxxxx
    (a) ``A'' is for an Army project.
    (b) ``92'' is for a FY92 project.
    (c) ``BA'' is an Approved PIF project.
    (d) ``xxxxxx'' is a DoD Component identifier.
    (2) DoD Component PECI points of contact should establish 
identifiers to ensure each project is unique.
    b. Total Funds Provided. For each project provide the cumulative 
amount of PEIC funds invested in the project
    c. Total Amount Obligated. For each project provide the cumulative 
amount of funds obligated against the project.
    d. Actual Savings. For each project provide the cumulative actual 
savings generated.
    e. Projected Life-Cycle Savings. For each PIF project provide the 
estimated amount of savings the project is projected to earn over the 
project's economic life.
    f. Projected Life-Cycle Cost Avoidance. For each PIF project provide 
the estimated amount of cost avoidance the project is projected to 
achieve.
    2. PEIF. Each DoD Component that has funded PEIF projects must 
annually report summary information that includes:
    a. Total Number of Projects.
    b. Total Funds Provided.
    c. Total Amount Obligated.
    d. Total Projected Life-Cycle Savings.
    e. Total Projected Life-Cycle Cost Avoidance.
    3. CSI. Each DoD Component that has funded CSI projects must 
annually report summary information that includes:
    a. Total Number of Projects.
    b. Total Funds Provided.
    c. Total Amount Obligated.
    d. Total Projected Life-Cycle Savings.
    e. Total Projected Life-Cycle Cost Avoidance.
    4. PIA Post-Investment assessments, articles, pictures, and brief 
description of projects and their results are encouraged and may be 
attached to the annual report or submitted throughout the year.



PART 165--RECOUPMENT OF NONRECURRING COSTS ON SALES OF U.S. ITEMS--Table of Contents




Sec.
165.1  Purpose.
165.2  Applicability and scope.
165.3  Definitions.
165.4  Policy.
165.5  Responsibilities.
165.6  Procedures.
165.7  Waivers (including reductions).

    Authority: 31 U.S.C. 9701.

    Source: 58 FR 16497, Mar. 29, 1993, unless otherwise noted.



Sec. 165.1  Purpose.

    This part updates policy to conform with Public Law 90-629, ``Arms 
Export

[[Page 878]]

Control Act,'' October 22, 1968, as amended for calculating and 
assessing nonrecurring cost recoupment charges on sales of items 
developed for or by the Department of Defense to non-U.S. Government 
customers.



Sec. 165.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense, the 
Military Departments, the Chairman of the Joint Chiefs of Staff and the 
Joint Staff, the Unified and Specified Commands, the Defense Agencies, 
and the DoD Field Activities (hereafter referred to collectively as 
``the DoD Components'').
    (b) The provisions of this part do not apply to sales of excess 
property when accountability has been transferred to property disposal 
activities and the property is sold in open competition to the highest 
bidder.
    (c) The policies and procedures provided for in this part shall 
apply to all sales on or after January 13, 1993, and supersede 
application thresholds and charges previously established. Previous 
versions continue to govern sales made during applicable effective 
dates. Such previously established nonrecurring cost recoupment 
thresholds and charges shall be eliminated or revised in accordance with 
this part.



Sec. 165.3  Definitions.

    (a) Cost pool. Represents the total cost to be distributed across 
the specific number of units. The nonrecurring research, development, 
test, and evaluation cost pool comprises the costs described in 
paragraph (f), of this section. The nonrecurring production cost pool 
comprises costs described in paragraph (e), of this section.
    (b) Foreign military sale. A sale by the U.S. Government of defense 
items or defense services to a foreign government or international 
organization under authority of the ``Arms Export Control Act,'' Public 
Law No. 90-629 (1968) as amended. Except as waived by the Under 
Secretary of Defense for Policy, Foreign Military Sales are the only 
sales subject to nonrecurring cost recoupment charges.
    (c) Major defense equipment. Any item of significant military 
equipment on the United States Munitions List having a nonrecurring 
research, development, test, and evaluation cost of more than 50 million 
dollars or a total production cost of more than 200 million dollars. The 
determination of whether an item meets the major defense equipment 
dollar threshold for research, development, test, and evaluation shall 
be based on DoD obligations recorded to the date the equipment is 
offered for sale. Production costs shall include costs incurred by the 
Department of Defense. Production costs for the foreign military sales 
program and known direct commercial sales production are excluded.
    (d) Model. A basic alpha-numeric designation in a weapon system 
series; e.g., a ship hull series, an equipment or system series, a 
airframe series, or a vehicle series. For example, the F5A and the F5F 
are different models in the same F-5 system series.
    (e) Nonrecurring production costs. Those one-time costs incurred in 
support of previous production of the model specified and those costs 
specifically incurred in support of the total projected production run. 
Those nonrecurring cost include DoD expenditures for preproduction 
engineering; rate and special tooling; special test equipment; 
production engineering; product improvement; destructive testing; and 
pilot model production, testing, and evaluation. That includes costs of 
any engineering change proposals initiated before the date of 
calculations of the nonrecurring costs recoupment charge. Nonrecurring 
production costs do not include DoD expenditures for machine tools, 
capital equipment, or facilities for which contractor rental payments 
are made or waived in accordance with the DoD FAR Supplement.
    (f) Nonrecurring research, development, test, and evaluation costs. 
Those costs funded by a research, development, test, and evaluation 
appropriation to develop or improve the product or technology under 
consideration either through contract or in-house DoD effort. This 
includes costs of any engineering change proposal started before the 
date of calculation of the nonrecurring cost recoupment charges as well 
as projections of such costs, to the extent additional effort applicable 
to

[[Page 879]]

the sale model or technology is necessary or planned. It does not 
include costs funded by either procurement or operation and maintenance 
appropriations.
    (g) Pro rata recovery of nonrecurring costs. Equal distribution 
(proration) of a pool of nonrecurring cost to a specific number of units 
that benefit from the investment so that a DoD Component shall collect 
from a customer a fair (pro rata) share of the investment in the product 
being sold. The production quantity base used to determine the pro rata 
calculation of major defense equipment includes total production.
    (h) Significant change in nonrecurring cost recoupment charge. A 
significant change occurs as follows:
    (1) A new calculation shows a change of 30 percent of the current 
system nonrecurring cost charge.
    (2) The nonrecurring cost unit charge increases or decreases by 
50,000 dollars or more; or
    (3) Where the potential for a 5 million dollars change in recoupment 
exists. The total collections may be estimated based on the projected 
sales quantities. When potential collections increase or decrease by 5 
million dollars, a significant change occurs.
    (i) ``Special'' research, development, test, and evaluation and 
nonrecurring production costs. Costs incurred under a foreign military 
sale at the request of, or for the benefit of, a foreign customer to 
develop a special feature or unique or joint requirement. Those costs 
must be paid by the customer as they are incurred.



Sec. 165.4  Policy.

    It is DoD policy that:
    (a) A nonrecurring cost recoupment charge shall be imposed for sales 
of major defense equipment only as required by Act of Congress (e.g., 
Arms Export Control Act).
    (b) The Under Secretary of Defense for Policy may grant a waiver to 
recoupment charges in accordance with Sec. 165.7.
    (c) Nonrecurring cost charges shall be based on the amount of the 
DoD nonrecurring investment in an item.



Sec. 165.5  Responsibilities.

    (a) The Comptroller of the Department of Defense shall provide 
necessary financial management guidance.
    (b) The Under Secretary of Defense (Acquisition) shall take 
appropriate action to revise the DoD Federal Acquisition Regulation 
Supplement in accordance with this part.
    (c) The Under Secretary of Defense for Policy shall:
    (1) Monitor the application of this part.
    (2) Review and approve nonrecurring cost recoupment charges and 
nonrecurring cost recoupment charge waiver requests received from 
foreign countries and international organizations for foreign military 
sales.
    (3) Ensure publication of a listing of items developed for or by the 
Department of Defense to which nonrecurring cost recoupment charges are 
applicable.
    (d) The Secretaries of the Military Departments and the Directors of 
the Defense Agencies shall:
    (1) Determine the DoD nonrecurring investment in items developed for 
or by the Department of Defense and perform required pro rata 
calculations in accordance with this part and financial management 
guidance from the Comptroller of the Department of Defense.
    (2) Validate and provide recommended charges to the Under Secretary 
of Defense for Policy. Supporting documentation will be retained until 
the item has been eliminated from the nonrecurring cost recoupment 
charge listing.
    (3) Review approved nonrecurring cost recoupment charges on a 
biennial basis to determine if there has been a change in factors or 
assumptions used to compute a nonrecurring cost recoupment charge and, 
if there is a significant change in a nonrecurring cost recoupment 
charge, provide a recommended change to the Under Secretary of Defense 
for Policy.

[[Page 880]]

    (5) Deposit collections to accounts as prescribed by the 
Comptroller, DoD.
    (6) Request guidance from the Under Secretary of Defense for Policy, 
within 90 days, if an issue concerning a recoupment charge cannot be 
resolved.



Sec. 165.6  Procedures.

    (a) The nonrecurring cost recoupment charge to be reimbursed shall 
be a pro rata recovery of nonrecurring cost for the applicable major 
defense equipment. Recovery of nonrecurring cost recoupment charges 
shall cease upon the recovery of total DoD costs. Such charges shall be 
based on a cost pool as defined in Sec. 165.3. For a system that 
includes more than one component, a ``building block'' approach (i.e., 
the sum of nonrecurring cost recoupment charges for individual 
components) shall be used to determine the nonrecurring cost recoupment 
charge for the sale of the entire system.
    (b) A nonrecurring cost recoupment charge shall not apply when a 
waiver has been approved by the Under Secretary of Defense for Policy in 
accordance with Sec. 165.7 or when sales are financed with U.S. 
Government funds made available on a nonrepayable basis. Approved 
revised nonrecurring cost recoupment charges shall not be applied 
retroactively to accepted foreign military sales agreements.
    (c) When major defense equipment are sold at a reduced price due to 
age or condition, the nonrecurring cost recoupment charge shall be 
reduced by the same percentage reduction.
    (d) The full amount of ``special'' research, development, test, and 
evaluation and nonrecurring production costs incurred for the benefit of 
particular customers shall be paid by those customers. However, when a 
subsequent purchaser requests the same specialized features that 
resulted from the added ``special'' research, development, test, and 
evaluation and nonrecurring production costs, a pro rata share of those 
costs may be paid by the subsequent purchaser and transferred to the 
original customer if those special nonrecurring costs exceed 50 million 
dollars. The pro rata share may be a unit charge determined by the DoD 
Component as a result of distribution of the total costs divided by the 
total production. Such reimbursements shall not be collected after 10 
years have elapsed since acceptance of DD Form 1513, ``U.S. DoD Offer 
and Acceptance,'' by the original customer, unless otherwise authorized 
by the Under Secretary of Defense for Policy. The U.S. Government shall 
not be charged any nonrecurring costs recoupment charge if it adopts the 
features for its own use or provides equipment with such features under 
a U.S. Grant Aid or similar program.
    (e) For coproduction, codevelopment and cooperative development, or 
cooperative production DoD agreements, the policy set forth in this part 
shall determine the allocation basis for recouping from the third party 
purchasers the investment costs of the participants. Such DoD agreements 
shall provide for the application of the policies in this part to sales 
to third parties by any of the parties to the agreement and for the 
distribution of recoupments among the parties to the agreement.



Sec. 165.7  Waivers (including reductions).

    (a) The ``Arms Export Control Act,'' Public Law No. 90-629, as 
amended, requires the recoupment of a proportionate amount of 
nonrecurring cost of major defense equipment from foreign military sales 
customers but authorizes consideration of reductions or waivers for 
particular sales which, if made, significantly advance U.S. Government 
interests and the furtherance of mutual defense treaties between the 
United States and certain countries.
    (b) Requests for waivers should originate with the foreign 
government and shall provide information on the extent of 
standardization to be derived as a result of the waiver.

[[Page 881]]

    (c) Blanket waiver requests should not be submitted and shall not be 
considered. The term ``blanket waiver'' refers to a nonrecurring cost 
recoupment charge waiver that is not related to a particular sale; for 
example, waivers for all sales to a country or all sales of a weapon 
system.
    (d) A waiver request shall not be considered for a sale that was 
accepted without a nonrecurring cost recoupment charge waiver, unless 
the acceptance was conditional on consideration of the waiver request.
    (e) Requests for waivers shall be processed expeditiously, and a 
decision normally made to either approve or disapprove the request 
within 60 days after receipt. A waiver in whole or in part of the 
recoupment charge or a denial of the request shall be provided in 
writing to the appropriate DoD Component.



PART 168a--NATIONAL DEFENSE SCIENCE AND ENGINEERING GRADUATE FELLOWSHIPS--Table of Contents




Sec.
168a.1  Purpose.
168a.2  Applicability.
168a.3  Definition.
168a.4  Policy and procedures.
168a.5  Responsibilities.

    Authority: 10 U.S.C. 2191.

    Source: 55 FR 29844, July 23, 1990, unless otherwise noted.



Sec. 168a.1  Purpose.

    This part:
    (a) Establishes guidelines for the award of National Defense Science 
and Engineering Graduate (NDSEG) Fellowships, as required by 10 U.S.C. 
2191.
    (b) Authorizes, in accordance with 10 U.S.C. 2191 and consistent 
with DoD 5025.1, the publication of a regulation which will be codified 
at 32 CFR part 168b.



Sec. 168a.2  Applicability.

    This part applies to the Office of the Secretary of Defense (OSD), 
the Military Departments, and the Defense Agencies (hereafter referred 
to collectively as ``DoD Components'').



Sec. 168a.3  Definition.

    Sponsoring Agency. A DoD Component or an activity that is designated 
to award NDSEG fellowships under Sec. 168a.5(a).



Sec. 168a.4  Policy and procedures.

    (a) Sponsoring Agencies, in awarding NDSEG fellowships, shall award:
    (1) Solely to U.S. citizens and nationals who agree to pursue 
graduate degrees in science, engineering, or other fields of study that 
are designated, in accordance with Sec. 168a.5(b)(2), to be of priority 
interest to the Department of Defense.
    (2) Through a nationwide competition in which all appropriate 
actions have been taken to encourage applications from members of groups 
(including minorities, women, and disabled persons) that historically 
have been underrepresented in science and engineering.
    (3) Without regard to the geographic region in which the applicant 
lives or the geographic region in which the applicant intends to pursue 
an advanced degree.
    (b) The criteria for award of NDSEG fellowships shall be:
    (1) The applicant's academic ability relative to other persons 
applying in the applicant's proposed field of study.
    (2) The priority of the applicant's proposed field of study to the 
Department of Defense.



Sec. 168a.5  Responsibilities.

    (a) The Deputy Director, Defense Research and Engineering (Research 
and Advanced Technology) [DDDR&E(R&AT)], shall:
    (1) Administer this part and issue DoD guidance, as needed, for 
NDSEG fellowships.
    (2) Designate those DoD Components that will award NDSEG 
fellowships, consistent with relevant statutory authority.
    (3) Issue a regulation in accordance with 10 U.S.C. 2191 and DoD 
5025.1-M.
    (b) The Heads of Sponsoring Agencies, or their designees, in 
coordination with a representative of the Deputy Director, Defense 
Research and Engineering (Research and Advanced Technology) 
[DDDR&E(R&AT)], shall:

[[Page 882]]

    (1) Oversee the nationwide competition to select NDSEG fellowship 
recipients.
    (2) Determine those science, engineering and other fields of 
priority interest to the Department of Defense in which NDSEG 
fellowships are to be awarded.
    (3) Prepare a regulation, in accordance with 10 U.S.C. 2191, that 
prescribes.
    (i) Procedures for selecting NDSEG fellows.
    (ii) The basis for determining the amounts of NDSEG fellowships.
    (iii) The maximum NDSEG fellowship amount that may be awarded to an 
individual during an academic year.



PART 169--COMMERCIAL ACTIVITIES PROGRAM--Table of Contents




Sec.
169.1  Purpose.
169.2  Applicability and Scope.
169.3  Definitions.
169.4  Policy.
169.5  Responsibilities.

    Authority: 5 U.S.C. 301 and 552 and Pub. L. 93-400.

    Source: 54 FR 13373, Apr. 3, 1989, unless otherwise noted.



Sec. 169.1  Purpose.

    This document:
    (a) Revises 32 CFR part 169.
    (b) Updates DoD policies and assigns responsibilities for commercial 
activities (CAs) as required by E.O. 12615, Pub. L. 100-180, sec. 1111, 
and OMB Circular A-76.



Sec. 169.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense (OSD), the 
Military Departments, and the Defense Agencies (hereafter referred to 
collectively as ``DoD Components'').
    (b) Encompasses DoD policy for CAs in the United States, its 
territories and possessions, the District of Columbia, and the 
Commonwealth of Puerto Rico.
    (c) Is not mandatory for CAs staffed solely with DoD civilian 
personnel paid by nonappropriated funds, such as military exchanges. 
However, this part is mandatory for CAs when they are staffed partially 
with DoD civilian personnel paid by or reimbursed from appropriated 
funds, such as libraries, open messes, and other morale, welfare, and 
recreation (MWR) activities. When related installation support functions 
are being cost-compared under a single solicitation, a DoD Component may 
decide that it is practical to include activities staffed solely with 
DoD civilian personnel paid by nonappropriated funds.
    (d) Does not apply to DoD governmental functions as defined 
Sec. 169.3.
    (e) Does not apply when contrary to law, Executive orders, or any 
treaty or international agreement.
    (f) Does not apply in times of a declared war or military 
mobilization.
    (g) Does not provide authority to enter into contracts.
    (h) Does not apply to the conduct of research and development, 
except for severable in-house CAs that support research and development, 
such as those listed in enclosure 3 of DoD Instruction 4100.33 \1\ (32 
CFR part 169a).
---------------------------------------------------------------------------

    \1\ Copies may be obtained, if needed, from the U.S. Naval 
Publications and Forms Center, ATTN: Code 1053, 5801 Tabor Avenue, 
Philadelphia, PA 19120.
---------------------------------------------------------------------------

    (i) Does not justify conversion to contract solely to avoid 
personnel ceilings or salary limitations.
    (j) Does not authorize contracts that establish an employer-employee 
relationship between the Department of Defense and contractor employees, 
as described in FAR 37.104.



Sec. 169.3  Definitions.

    Commercial Activity Review. The process of evaluating CAs for the 
purpose of determining whether or not a cost comparison will be 
conducted.
    Commercial Source. A business or other non-Federal activity located 
in the United States, its territories and possessions, the District of 
Columbia, or the Commonwealth of Puerto Rico that provides a commercial 
product or service.
    Conversion to Contract. The changeover of a CA from performance by 
DoD personnel to performance under contract by a commercial source.
    Conversion to In-House. The changeover of a CA from performance 
under

[[Page 883]]

contract to performance by DoD personnel.
    Core Logistics. Those functions identified as core logistics 
activities pursuant to section 307 of Pub. L 98-525 and section 1231 of 
Pub. L. 99-145, codified at section 2464, title 10 that are necessary to 
maintain a logistics capability (including personnel, equipment, and 
facilities) to ensure a ready and controlled source of technical 
competence and resources necessary to ensure effective and timely 
response to a mobilization, national defense contingency situation, and 
other emergency requirements.
    Cost Comparison. The process of developing an estimate of the cost 
of performance of a CA by DoD employees and comparing it, in accordance 
with the requirements in DoD Instruction 4100.33 to the cost of 
performance by contract.
    Direct-Conversion. Conversion to contract performance of an in-house 
commercial activity based on a simplified cost comparsion or the 
conversion of an in-house commerical activity performed exclusively by 
military personnel.
    Displaced DoD Employee. Any DoD employee affected by conversion to 
contract operation (including such actions as job elimination, or grade 
reduction). It includes both employees in the function converted to 
contract and employees outside the function who are affected adversely 
by conversion through reassignment or the exercise of bumping or retreat 
rights.
    DoD Commercial Activity (CA). An activity that provides a product or 
service obtainable (or obtained) from a commerical source. A DoD CA may 
be the mission of an organization or a function within the organization. 
It must be type of work that is separable from other functions or 
activities so that it is suitable for performance by contract. A 
representative list of the functions performed by such activities is 
provided in enclosure 3 of DoD Instruction 4100.33. A DoD CA falls into 
one of two categories:
    (a) Contract CA. A DoD CA managed by a DoD Component, but operated 
with contractor personnel.
    (b) In-House CA. A DoD CA operated by a DoD Component with DoD 
personnel.
    DoD Employee. Civilian personnel of the Department of Defense.
    DoD Governmental Function. A function that is related so intimately 
to the public interest as to mandate performance by DoD personnel. These 
functions include those that require either the exercise of discretion 
in applying Government authority or the use of value judgment in making 
the decision for the Department of Defense. Services or products in 
support of Governmental functions, such as those listed in enclosure 3 
of DoD Instruction 4100.33, are CAs and are subject to this part and its 
implementing Instructions. Governmental functions normally fall into two 
categories:
    (a) Act of Governing. The discretionary exercise of Governmental 
authority. Examples include criminal investigations, prosecutions, and 
other judicial functions; management of Government programs requiring 
value judgments, as in direction of the national defense; management and 
direction of the Armed Services; activities performed exclusively by 
military personnel who are subject to deployment in a combat, combat 
support, or combat service support role; conduct of foreign relations; 
selection of program priorities; direction of Federal employees; 
regulation of the use of space, oceans, navigable rivers, and other 
natural resources; management of natural resources on Federal Property; 
direction of intelligence and counterintelligence operations; and 
regulation of industry and commerce, including food and drugs.
    (b) Monetary Transactions and Entitlements. Refers to such actions 
as tax collection and revenue disbursements; control of treasury 
accounts and the money supply, and the administration of public trusts.
    DoD Personnel. Military and civilian personnel of the Department of 
Defense.
    Expansion. The modernization, replacement, upgrading, or enlargement 
of a DoD CA involving a cost increase exceeding either 30 percent of the 
total capital investment or 30 percent of the annual personnel and 
material costs. A

[[Page 884]]

consolidation of two or more CAs is not an expansion, unless the 
proposed total capital investment or annual personnel and material costs 
of the consolidation exceeds the total of the individual CAs by 30 
percent or more.
    Installation. An installation is the grouping of facilities, 
collocated in the same vicinity, that supports particular functions. 
Activities collocated and supported by an installation are considered to 
be tenants.
    Installation Commander. The commanding officer or head of an 
installation or a tenant activity, who has budget and supervisory 
control over resources and personnel.
    New Requirement. A recently established need for a commercial 
product or service. A new requirement does not include interim in-house 
operation of essential services pending reacquisition of the services 
prompted by such action as the termination of an existing contract 
operation.
    Preferential Procurement Programs. Preferential procurement programs 
include mandatory source programs such as Federal Prison Industries 
(FPI) and the workshops administered by the Committee for Purchase from 
the Blind and Other Severely Handicapped under Pub. L. 92-98. Small, 
minority, and disadvantaged businesses; and labor surplus area set-
asides and awards made under Pub. L. 85-536, section 8(a) and Pub. L. 
95-507 are included under preferential procurement programs.
    Right of First Refusal of Employment. Contractors provide Government 
employees, displaced as a result of the conversion to contract 
performance, the right of first refusal for employment openings under 
the contract in positions for which they are qualified, if that 
employment is consistent with post-Government employment conflict of 
interest standards.



Sec. 169.4  Policy.

    (a) Ensure DoD Mission Accomplishment. When complying with this part 
and its implementing Instruction, DoD Components shall consider the 
overall DoD mission and the defense objective of maintaining readiness 
and sustainability to ensure a capability for mobilizing the defense and 
support structure.
    (b) Achieve Economy and Quality through Competition. Encourage 
competition with the objective of enhancing quality, economy, and 
performance. When performance by a commercial source is permissible, a 
comparsion of the cost of contracting and the cost of in-house 
performance shall be performed to determine who shall provide the best 
value for the Government, considering price and other factors included 
in the solicitation. The restriction of a solicitation to a preferential 
procurement program does not negate the requirement to perform a cost 
comparison. Performance history will be considered in the source 
selection process, and high quality performance should be rewarded.
    (c) Retain Governmental Functions In-House. Certain functions that 
are inherently governmental in nature, and intimately related to the 
public interest, mandate performance by DoD personnel only. These 
functions are not in competition with commercial sources; therefore, 
these functions shall be performed by DoD personnel.
    (d) Rely on the Commercial Sector. DoD Components shall rely on 
commercially available sources to provide commercial products and 
services except when required for national defense, when no satisfactory 
commercial source is available, or when in the best interest of direct 
patient care. DoD Components shall not consider an in-house new 
requirement, an expansion of an in-house requirement, conversion to in-
house, or otherwise carry on any CAs to provide commercial products or 
services if the products or services can be procured more economically 
from commercial sources.
    (e) Delegate Decision Authority and Responsibility. DoD Components 
shall delegate decision authority and responsibility to lower 
organization levels, giving more authority to the doers, and linking 
responsibility with that authority. This shall facilitate the work that 
installation commanders must perform without limiting their freedom to 
do their jobs. When possible, the installation commanders should have 
the freedom to make intelligent use of their resources, while preserving 
the

[[Page 885]]

essential wartime capabilities of U.S. support organizations in 
accordance with DoD Directive 4001.1.\2\
---------------------------------------------------------------------------

    \2\ See footnote 1 to Sec. 169.2(h)
---------------------------------------------------------------------------

    (f) Share Resources Saved. When possible, make available to the 
installation commander a share of any resources saved or earned so that 
the commander can improve operations or working and living conditions on 
the installation.
    (g) Provide Placement Assistance. Provide a variety of placement 
assistance to employees whose Federal jobs are eliminated through CA 
competitions.
[54 FR 13373, Apr. 3, 1989; 54 FR 21726, May 19, 1989]



Sec. 169.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Production and Logistics) 
(ASD (P&L)), or designee, shall:
    (1) Formulate and develop policy consistent with this part for the 
DoD CA program.
    (2) Issue Instructions to implement the policies of this part.
    (3) Maintain an inventory of in-house DoD CAs and the Commercial 
Activities Management Information System (CAMIS).
    (4) Establish criteria for determining whether a CA is required to 
be retained in-house for national defense.
    (5) Approve or disapprove core logistics waiver requests.
    (b) The Comptroller of the Department of Defense (C, DoD) shall 
provide inflation factors and/or price indices and policy guidance to 
the DoD Components on procedures and systems for obtaining cost data for 
use in preparing the in-house cost estimate.
    (c) The Heads of DoD Components shall:
    (1) Comply with this part and DoD Instruction 4100.33.
    (2) Designate an official at the Military Service Assistant 
Secretary level, or equivalent, to implement this part.
    (3) Establish an office as a central point of contact for 
implementing this part.
    (4) Encourage and facilitate CA competitions.
    (5) Delegate, as much as practicable, broad authority to 
installation commanders to decide how best to use the CA program to 
accomplish the mission. Minimally, as prescribed by P.L. 100-180, 
section 1111 and E.O. 12615, installation commanders shall have the 
authority and responsibility to carry out the following:
    (i) Prepare an inventory each fiscal year of commercial activities 
carried out by Government personnel on the military installation in 
accordance with DoD Instruction 4100.33.
    (ii) Decide which commercial activities shall be reviewed under the 
procedures and requirements of E.O. 12615, OMB Circular A-76, and DoD 
Instruction 4100.33. This authority shall not be applied retroactively. 
Cost comparisons and direct conversions initiated, as of December 4, 
1987, shall be continued.
    (iii) Conduct a cost comparison of those commercial activities 
selected for conversion to contractor performance under OMB Circular A-
76.
    (iv) To the maximum extent practicable, assist in finding suitable 
employment for any DoD employee displaced because of a contract entered 
into with a contractor for performance of a commercial activity on the 
military installation.
    (6) Develop specific national defense guidance consistent with DoD 
Instruction 4100.33.
    (7) Establish administrative appeal procedures consistent with DoD 
Instruction 4100.33.
    (8) Ensure that contracts resulting from cost comparisons conducted 
under this part are solicited and awarded in accordance with the FAR and 
the DFARS.
    (9) Ensure that all notification and reporting requirements 
established in DoD Instruction 4100.33 are satisfied.
    (10) Ensure that the Freedom of Information Act Program is complied 
with in responding to requests for disclosure of contractor-supplied 
information obtained in the course of procurement.
    (11) Ensure that high standards of objectivity and consistency are 
maintained in compiling and maintaining the CA inventory and conducting 
the reviews and cost comparisons.

[[Page 886]]

    (12) Provide, when requested, assistance to installation commanders 
to ensure effective CA program implementation and technical competence 
in management and implementation of the CA program.
    (13) Ensure that maximum efforts are exerted to assist displaced DoD 
employees in finding suitable employment, to include, as appropriate:
    (i) Providing priority placement assistance for other Federal jobs.
    (ii) Training and relocation when these shall contribute directly to 
placement.
    (iii) Providing outplacement assistance for employment in other 
sectors of the economy with particular attention to assisting eligible 
employees to exercise their right of first refusal with the successful 
contractor.
    (14) Maintain the technical competence necessary to ensure effective 
and efficient management of the CA program.
    (15) Ensure, once the cost comparison is initiated, that the 
milestones are met, and completion of the cost comparison is without 
unreasonable delay.



PART 169a--COMMERCIAL ACTIVITIES PROGRAM PROCEDURES--Table of Contents




                           Subpart A--General

Sec.
169a.1  Purpose.
169a.2  Applicability and scope.
169a.3  Definitions.
169a.4  Policy.

                          Subpart B--Procedures

169a.8  Inventory and review schedule (Reports Control Symbol DD-
          P&L(A)).
169a.9  Reviews: Existing in-house commercial activities.
169a.10  Contracts.
169a.11  Expansions.
169a.12  New requirements.
169a.13  CAs involving forty-five or fewer DoD civilian employees.
169a.14  Military personnel commerical activity.
169a.15  Special considerations.
169a.16  Independent review.
169a.17  Solicitation considerations.
169a.18  Administrative appeal procedures.
169a.19  Study limits.

                    Subpart C--Reporting Requirements

169a.21  Reporting requirements.
169a.22  Responsibilities.

Appendix A to Part 169a--Codes and Definitions of Functional Areas
Appendix B to Part 169a--Commercial Activities Inventory Report and 
          Five-year Review Schedule
Appendix C to Part 169a--Simplified Cost Comparisons for Direct 
          Conversion of CAs
Appendix D to Part 169a--Commercial Activities Management Information 
          System (CAMIS)

    Authority: 5 U.S.C. 301 and 552.

    Source: 50 FR 40805, Oct. 7, 1985, unless otherwise noted.



                           Subpart A--General



Sec. 169a.1  Purpose.

    This part:
    (a) Reissues DoD Instruction 4100.33 \1\ to update policy, 
procedures, and responsibilities required by DoD Directive 4100.15 \2\ 
and OMB Circular A-76 \3\ for use by the Department of Defense (DoD) to 
determine whether needed commercial activities (CAs) should be 
accomplished by DoD personnel or by contract with a commercial source.
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161
    \2\ See footnote 1 to Sec. 169a.1(a).
    \3\ Copies may be obtained if needed, from the Office of Management 
and Budget, Executive Office Building, Washington, DC 20503.
---------------------------------------------------------------------------

    (b) Cancels DoD 4100.33-H,\4\ ``DoD In-House vs. Contract Commercial 
and Industrial Activities Cost Comparison Handbook.''
---------------------------------------------------------------------------

    \4\ See footnote 1 to Sec. 169a.1(a).
---------------------------------------------------------------------------



Sec. 169a.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense (OSD), the 
Military Departments, the Defense Agencies and DoD Field Activities 
(hereafter referred to collectively as the ``DoD Components'').
    (b) Contains DoD procedures for CAs in the United States, its 
territories and possessions, the District of Columbia, and the 
Commonwealth of Puerto Rico.
    (c) Is not mandatory for CAs staffed solely with DoD civilian 
personnel paid by nonappropriated funds, such as military exchanges. 
However, this part is mandatory for CAs when they are

[[Page 887]]

staffed partially with DoD civilian personnel paid by or reimbursed from 
appropriated funds, such as libraries, open messes, and other morale, 
welfare, and recreation (MWR) activities. When related installation 
support functions are being cost-compared under a single solicitation, a 
DoD Component may decide that it is practical to include activities 
staffed solely with DoD civilian personnel paid by nonappropriated 
funds.
    (d) Does not apply to DoD governmental functions are defined in 
Sec. 169a.3.
    (e) Does not apply when contrary to law, Executive orders, or any 
treaty or international agreement.
    (f) Does not apply in times of a declared war or military 
mobilization.
    (g) Does not provide authority to enter into contracts.
    (h) Does not apply to the conduct of research and development, 
except for severable in-house CAs that support research and development, 
such as those listed in appendix A to this part.
    (i) Does not justify conversion to contract solely to avoid 
personnel ceilings or salary limitations.
    (j) Doe not authorize contracts that establish employer-employee 
relations between the Department of Defense and contractor employees as 
described in the Federal Acquisition Regulation (FAR), 48 CFR 37.104.
    (k) Does not establish and shall not be construed to create any 
substantive or procedural basis for anyone to challenge any DoD action 
or inaction on the basis that such action or inaction was not in 
accordance with this part except as specifically set forth in 
Sec. 169a.15(d).
[57 FR 29207, July 1, 1992]



Sec. 169a.3  Definitions.

    Commercial activity review. The process of evaluating CAs for the 
purpose of determining whether or not a cost comparison will be 
conducted.
    Commercial source. A business or other non-Federal activity located 
in the United States, its territories and possessions, the District of 
Columbia, or the Commonwealth of Puerto Rico that provides a commercial 
product or service.
    Conversion to contract. The changeover of a CA from performance by 
DoD personnel to performance under contract by a commercial source.
    Conversion to in-house. The changeover of a CA from performance 
under contract by a commercial source to performance by DoD personnel.
    Cost comparison. The process of developing an estimate of the cost 
of performance of a CA by DoD employees and comparing it, in accordance 
with the requirements in this part, to the cost to the Government for 
contract performance of the CA.
    Directly affected parties. DoD employees and their representative 
organizations and bidders or offerers on the solicitation.
    Displaced DoD employee. Any DoD employee affected by conversion to 
contract operation (including such actions as job elimination, grade 
reduction, or reduction in rank). It includes both employees in the 
function converted to contract and to employees outside the function who 
are affected adversely by conversion through reassignment or the 
exercise of bumping or retreat rights.
    DoD Commercial Activity (CA). An activity that provides a product or 
service obtainable (or obtained) from a commercial source. A DoD CA is 
not a Governmental function. A DoD CA may be an organization or part of 
another organization. It must be a type of work that is separable from 
other functions or activities so that it is suitable for performance by 
contract. A representative list of the functions performed by such 
activities is provided in Enclosure 1. A DoD CA falls into one of two 
categories:
    (a) In-house CA. A DoD CA operated by a DoD Component with DoD 
personnel.
    (b) Contract CA. A DoD CA managed by a DoD Component operated with 
contractor personnel.
    DoD Employee. Refers to only civilian personnel of the Department of 
Defense.
    DoD governmental function. A function that is related so intimately 
to the public interest as to mandate performance by DoD personnel. These 
functions require either the exercise of discretion in applying 
Government authority or the use of value judgement

[[Page 888]]

in making the decision for the Department of Defense.
    Services or products in support of Governmental functions such as 
those listed in enclosure 3 of DoD Instruction 4100.33 are normally 
subject to this part and its implementing instructions. Governmental 
functions normally fall into two categories:
    (a) The act of governing; that is, the discretionary exercise of 
Governmental authority. Examples include criminal investigations, 
prosecutions, and other judicial functions; management of Governmental 
programs requiring value judgments, as in direction of the national 
defense; management and direction of the Armed Services; activities 
performed exclusively by military personnel who are subject to 
deployment in a combat, combat support, or combat service support role; 
conduct of foreign relations; selection of program priorities; direction 
of Federal employees; regulation of the use of space, oceans, navigable 
rivers, and other natural resources; direction of intelligence and 
counterintelligence operations; and regulation of industry and commerce, 
including food and drugs.
    (b) Monetary transactions and entitlements, such as tax collection 
and revenue disbursements; control of the money supply treasury 
accounts; and the administration of public trusts.
    DoD personnel. Refers to both military and civilian personnel of the 
Department of Defense.
    Expansion. The modernization, replacement, upgrading, or enlargement 
of a DoD CA involving a cost increase exceeding either 30 percent of the 
total capital investment or 30 percent of the annual personnel and 
material costs. A consolidation of two or more CAs is not an expansion 
unless the proposed total capital investment or annual personnel and 
material costs of the consolidation exceeds the total of the individual 
CAs by 30 percent or more.
    New requirement. A recently established need for a commercial 
product or service. A new requirement does not include interim in-house 
operation of essential services pending reacquisition of the services 
prompted by such action as the termination of an existing contract 
operation.
    Preferential procurement programs. Mandatory source programs such as 
Federal Prison Industries (FPI) and the workshops administered by the 
Committee for Purchase from the Blind and Other Severely Handicapped 
under the Javits-Wagner-O'Day Act. Also included are small, minority and 
disadvantaged businesses, and labor surplus area set-asides and awards 
made under 15 U.S.C. section 637.
[50 FR 40805, Oct. 7, 1985, as amended at 57 FR 29207, July 1, 1992]



Sec. 169a.4  Policy.

    (a) Ensure DoD mission accomplishment. The implementation of this 
part shall consider the overall DoD mission and the defense objective of 
maintaining readiness and sustainability to ensure a capability for 
mobilizing the defense and support structure.
    (b) Retain governmental functions in-house. Certain functions that 
are inherently governmental in nature, and intimately related to the 
public interest, mandate performance by DoD personnel only. These 
functions are not in competition with commercial sources; therefore, 
these functions shall be performed by DoD personnel.
    (c) Rely on the commercial sector. DoD Components shall rely on 
commercially available sources to provide commercial products and 
services, except when required for national defense, when no 
satisfactory commercial source is available, or when in the best 
interest of direct patient care. DoD Components shall not consider an 
in-house new requirement, an expansion of an in-house requirement, 
conversion to in-house, or otherwise carry on any CAs to provide 
commercial products or services if the products or services can be 
procured more economically from commercial sources.
    (d) Achieve economy and enhance productivity. Encourage competition 
with the objective of enhancing quality, economy, and performance.

When performance by a commercial source is permissible, a comparison of 
the cost of contracting and the cost of in-house performance shall be 
performed to determine who shall provide the best value for the 
Government,

[[Page 889]]

considering price and other factors included in the solicitation. If the 
installation commander has reason to believe that it may not be cost 
effective to make an award under mandatory source programs, section 8(a) 
of the Small Business Act or any other noncompetitive preferential 
procurement program, a cost comparison, or any other cost analysis, 
although not required by OMB Circular A-76, may be performed. 
Performance history will be considered in the source selection process, 
and high quality performance should be rewarded.
    (e) Delegate decision authority and responsibility. DoD Components 
shall delegate decision authority and responsibility to lower 
organization levels, giving more authority to the doers, and linking 
responsibility with that authority. This shall facilitate the work that 
installation commanders must perform without limiting their freedom to 
do their jobs. When possible, the installation commanders should have 
the freedom to make intelligent use of their resources, while preserving 
the essential wartime capabilities of U.S. support organizations in 
accordance with DoD Directive 4001.15.\5\
---------------------------------------------------------------------------

    \5\ See footnote 1 to Sec. 169a.1(a).
---------------------------------------------------------------------------

    (f) Share resources saved. When possible, make available to the 
installation commander a share of any resources saved or earned so that 
the commander can improve operations or working and living conditions on 
the installation.
    (g) Provide Placement Assistance. Provide a variety of placement 
assistance to employees whose Federal jobs are eliminated through CA 
competitions.
    (h) Permit interim-in-house operation. A DoD in-house CA may be 
established on a temporary basis if a contractor defaults. Action shall 
be taken to resolicit bids or proposals in accordance with this part.
[57 FR 29207, July 1, 1992]



                          Subpart B--Procedures



Sec. 169a.8  Inventory and review schedule (Report Control Symbol DD-P&L(A)).

    (a) Information in each DoD Component's inventory shall be used to 
assess DoD implementation of OMB Circular A-76 and for other purposes. 
Each Component's inventory shall be updated at least annually to reflect 
changes to their review schedule and the results of reviews, cost 
comparisons, and direct conversions. Updated inventories for all DoD 
Components except National Security Agency/Central Security Service 
(NSA/CSS) and the Defense Intelligence Agency (DIA) Shall be submitted 
to the Assistant Secretary of Defense Production and Logistics) 
(ASD(P&L)) within 90 days after the end of each fiscal year. Inventory 
data pertaining to NSA/CSS and DIA shall be held at the specific Agency 
concerned for subsequent review by properly cleared personnel. Appendix 
A to this part provides the codes and explanations for functional areas 
and Appendix B to this part provides procedures for submitting the 
inventory.
    (b) DoD component's review schedules should be coordinated with the 
DoD Component's Efficiency Review Program and the Defense Regional 
Interservice Support (DRIS) Program to preclude duplication of efforts 
and to make use of information already available.
    (c) Review of CAs that provide interservice support shall be 
scheduled by the supplying DoD Component. Subsequent cost comparisons, 
when appropriate, shall be executed by the same DoD Component. All 
affected DoD Components shall be notified of the intent to perform a 
review.
[50 FR 40805, Oct. 7, 1985, as amended at 57 FR 29208, July 1, 1992]



Sec. 169a.9  Reviews: Existing in-house commercial activities.

    (a) DoD components shall conduct reviews of in-house CAs in 
accordance with their established review schedules. Existing in-house 
CAs, once reviewed shall be retained in-house without a cost comparison 
only when certain conditions are satisfied. (Detailed documentation will 
be maintained to support the decision to continue in-house performance). 
These conditions are as follows:
    (1) National Defense. In most cases, application of this criteria 
shall be made considering the wartime and

[[Page 890]]

peacetime duties of the specific positions involved rather than in terms 
of broad functions.
    (i) A CA, staffed with military personnel who are assigned to the 
activity, may be retained in-house for national defense reason when the 
following apply.
    (A) The CA is essential for training or experience in required 
military skills;
    (B) The CA is needed to provide appropriate work assignments for a 
rotation base for overseas or sea-to-shore assignments; or
    (C) The CA is necessary to provide career progression to needed 
military skill levels.
    (ii) Core logistics activities. The core logistics capability 
reported to Congress, March 29, 1984, under the provisions of 10 U.S.C. 
2646 is comprised of the facilities, equipment, and management personnel 
at the activities listed in the report. The work at those activities may 
be performed by either government or contractor personnel, whichever is 
more cost effective. Core logistics activities reported to Congress 
under the provisions of 10 U.S.C. 2646, shall be retained in-house 
unless the Secretary of Defense grants a waiver as provided for in 10 
U.S.C. 2464. Requests for waivers shall be submitted to the ASD (P&L). 
DoD Components may propose to the ASD (P&L) additional core logistics 
capability for inclusion in the list of core logistics activities. Core 
logistics activities reported to Congress as additions to the original 
list shall be retained in-house unless subsequently waived by the 
Secretary of Defense.
    (iii) If the DoD Component has a larger number of similar CAs with a 
small number of essential military personnel in each CA, action shall be 
taken, when appropriate, to consolidate the military positions 
consistent with military requirements so that economical performance by 
either DoD civilian employees or by contract can be explored for 
accomplishing a portion of the work.
    (iv) The DoD Components may propose to the ASD (P&L) other criteria 
for exempting CAs for national defense reasons.
    (2) No satisfactory commercial source available. A DoD commercial 
activity may be performed by DoD personnel when it can be demonstrated 
that:
    (i) There is no satisfactory commercial source capable of providing 
the product or service that is needed. Before concluding that there is 
no satisfactory commercial source available, the DoD Component shall 
make all reasonable efforts to identify available sources.
    (A) DoD Components' efforts to find satisfactory commercial sources 
shall be carried out in accordance with the FAR and Defense FAR 
Supplement (DFAS) including review of bidders lists and inventories of 
contractors, consideration of preferential procurement programs, and 
requests for help from Government agencies such as the Small Business 
Administration.
    (B) Where the availability of commercial sources is uncertain, the 
DoD Component will place up to three notices of the requirement in the 
Commerce Business Daily (CBD) over a 90-day period. (Notices will be in 
the format specified in FAR, 48 CFR part 5 and part 7, subpart 7.3) When 
a bona fide urgent requirement occurs, the publication period in the CBD 
may be reduced to two notices, 15 days apart. Specifications and 
requirements in the notice will not be unduly restrictive and will not 
exceed those required of Government personnel or operations.
    (ii) Use of a commercial source would cause an unacceptable delay or 
disruption of an essential program. In-house operation of a commercial 
activity on the basis that use of a commercial source would cause an 
unacceptable delay or disrupt an essential DoD program requires a 
specific documented explanation.
    (A) The delay or disruption must be specific as to cost, time, and 
performance measures.
    (B) The disruption must be shown to be a lasting or unacceptable 
nature. Temporary disruption caused by conversion to contract is not 
sufficient support for the use of this criteria.
    (C) The fact that a DoD commercial activity involves a classified 
program, or is part of a DoD Component's basic mission, or that there is 
the possibility of a strike by contract employees is

[[Page 891]]

not adequate reason for Government performance of that activity. 
Further, urgency alone is not an adequate reason to continue Government 
operation of a commercial activity. It must be shown that commercial 
sources are not able, and the Government is able, to provide the product 
or service when needed.
    (D) Use of an exemption due to an unacceptable delay or disruption 
of an essential program shall be approved by the DoD Component's central 
point of contact office. This authority may be redelegated.
    (3) Patient Care. Commercial activities at DoD hospitals may be 
performed by DoD personnel when it is determined by the head of the DoD 
Component or his designee, in consultation with the DoD Component's 
chief medical director, that performance by DoD personnel would be in 
the best interest of direct patient care.
[50 FR 40805, Oct. 7, 1985, as amended at 57 FR 29208, July 1, 1992]



Sec. 169a.10  Contracts.

    When contract cost becomes unreasonable or performance becomes 
unsatisfactory, the requirement must be resolicited. If the DoD 
Component competes in the resolicitation, then a cost comparison of a 
contracted CA shall be performed in accordance with part III of the 
Supplement to OMB Circular A-76 (Office of Federal Procurement Policy 
pamphlet No. 4) \6\, part II of the Supplement to OMB Circular A-76 
(Management Study Guide) \7\, part IV of the Supplement to OMB Circular 
A-76 (Cost Comparison Handbook) \8\, if in-house performance is 
feasible. When contracted CAs are justified for conversion to in-house 
performance, the contract will be allowed to expire (options will not be 
exercised) once in-house capability is established.
---------------------------------------------------------------------------

    \6\ See footnote 3 to Sec. 169a.1(a).
    \7\ See footnote 3 to Sec. 169a.1(a).
    \8\ See footnote 3 to Sec. 169a.1(a).
---------------------------------------------------------------------------

[57 FR 29208, July 1, 1992]



Sec. 169a.11  Expansions.

    In cases where expansion of an in-house commercial activity is 
anticipated, a review of the entire commercial activity, including the 
proposed expansion, shall be conducted to determine if performance by 
DoD personnel is authorized for national defense reasons, because no 
commercial source is available, or because it is in the best interest of 
direct patient care. If performance by DoD personnel is not justified 
under these criteria, a cost comparison of the entire activity shall be 
performed. Government facilities and equipment normally will not be 
expanded to accommodate expansions if adequate and cost effective 
contractor facilities and equipment are available.
[50 FR 40805, Oct. 7, 1985, as amended at 57 FR 29208, July 1, 1992]



Sec. 169a.12  New requirements.

    (a) In cases where a new requirement for a commercial product or 
service is anticipated, a review shall be conducted to determine if 
performance by DoD personnel is authorized for national defense reasons, 
because no commercial source is available, or because it is in the best 
interest of direct patient care. If performance by DoD personnel is not 
justified under these criteria, then the new requirement normally shall 
be performed by contract.
    (b) If there is reason to believe that commercial prices may be 
unreasonable, a preliminary cost analysis shall be conducted to 
determine whether it is likely that the work can be performed in-house 
at a cost that is less than anticipated for contract performance. If in-
house performance appears to be more economical, a cost comparison shall 
be scheduled. The appropriate conversion differentials will be added to 
the preliminary in-house cost before it is determined that in-house 
performance is likely to be more economical.
    (c) Government facilities and equipment normally will not be 
expanded to accommodate new requirements if adequate and cost-effective 
contractor facilities are available. The requirement for Government 
ownership of facilities does not obviate the possibility of contract 
operation. If justification for in-house operation is dependent on 
relative cost, the cost comparison may be delayed to accommodate the 
lead time necessary for acquiring the facilities.

[[Page 892]]

    (d) Approval or disapproval of in-house performance of new 
requirements involving a capital investment of $500,000 or more will not 
be redelegated below the level of DAS or equivalent.
    (e) Approval to budget for a major capital investment associated 
with a new requirement will not constitute OSD approval to perform the 
new requirement with DoD personnel. Government performance shall be 
determined in accordance with this part.



Sec. 169a.13  CAs involving forty-five or fewer DoD civilian employees.

    (a) When adequately justified under the criteria required in 
Appendix C to this part, CAs involving 11 to 45 DoD civilian employees 
may be competed based on simplified cost comparison procedures and 10 or 
fewer DoD civilian employees may be directly converted to contract 
without the use of a simplified cost comparison. Such conversion shall 
be approved by the DoD Component's central point of contact office 
having the responsibility for implementation of this part. Part IV of 
the Supplement to OMB Circular A-76 and Appendix C to this part shall be 
utilized to define the specific elements of costs to be estimated in the 
simplified cost comparison.
    (b) In no case shall any CA involving more than forty-five employees 
be modified, reorganized, divided, or in any way changed for the purpose 
of circumventing the requirement to perform a full cost comparison.
    (c) The decision to perform a simplified cost comparison on a CA 
involving military personnel and 11 to 45 DoD Civilian employees 
reflects a management decision that the work need not be performed in-
house. Therefore, all direct military personnel costs will be estimated 
in the simplified cost comparison (see Appendix C to this part) on the 
basis of civilian performance.
    (d) A most efficient and cost-effective organization analysis 
certification is required for studies involving 11 to 45 DoD civilian 
employees (see Appendix C to this part).
[57 FR 29208, July 1, 1992]



Sec. 169a.14  Military personnel commercial activity.

    Commercial activities performed exclusively by military personnel 
not subject to deployment in a combat, combat support, or combat service 
support role may be converted to contract without a cost comparison, 
when adequate competition is available and reasonable prices can be 
obtained from qualified commercial sources.



Sec. 169a.15  Special considerations.

    (a) Signals Intelligence, Telecommunications (SIGINT) and Automated 
Information System (AIS) security.
    (1) Before making a determination that an activity involving SIGINT 
as prescribed in Executive Order 12333, and AIS, security should be 
subjected to a cost comparison, the DoD Component shall specifically 
identify the risk to national security and complete a risk assessment to 
determine if the use of commercial resources poses a potential threat to 
national security. Information copies of the risk assessment and a 
decision memorandum containing data on the acceptable and/or 
unacceptable risk will be maintained within the requesting DoD 
Component's contracting office.
    (2) The National Security Agency (NSA) considers the polygraph 
program an effective means to enhance security protection for special 
access type information. The risk to national security is of an 
acceptable level if contractor personnel assigned to the maintenance and 
operation of SIGINT, Computer Security (COMPUSEC) and Communications 
Security (COMSEC) equipment agree to an aperiodic counter-intelligence 
scope polygraph examination. The following clause should be included in 
every potential contract involving SIGINT, Telecommunications, and AIS 
systems:

Contract personnel engaged in operation or maintaining SIGINT, COMSEC or 
COMPUSEC equipment or having access to classified documents or key 
material must consent to an aperiodic counter-intelligence scope 
polygraph examination administered by the Government. Contract personnel 
who

[[Page 893]]

refuse to take the polygraph examination shall not be considered for 
selection.
    (b) National intelligence. Before making a determination that an 
activity involving the collection/processing/production/dissemination of 
national intelligence as prescribed in Executive Order 12333 should be 
subjected to a cost comparison, the DoD Component must specifically 
identify the risk to national intelligence of using commercial sources. 
Except as noted in paragraph (a) of this section, the DoD Component 
shall provide its assessment of the risk to national intelligence of 
using commercial sources to the Director, DIA, who shall make the 
determination if the risk to national intelligence is unacceptable. DIA 
shall consult with other organizations as deemed necessary and shall 
provide the decision to the DoD Component. (Detailed documentation shall 
be maintained to support the decision).
    (c) Accountable Officer. (1) The functions and responsibilities of 
the Accountable Officer are defined by DoD 7200.10-M.\9\ Those functions 
of the Accountable Officer that involve the exercise of substantive 
discretionary authority in determining the Government's requirements and 
controlling Government assets cannot be performed by a contractor and 
must be retained in-house. The responsibilities of the Accountable 
Officer as an individual and the position of the Accountable Officer are 
not contractable.
---------------------------------------------------------------------------

    \9\ See footnote 1 to Sec. 169a.1(a).
---------------------------------------------------------------------------

    (2) Contractors can perform functions in support of the Accountable 
Officer and functions where they are performing in accordance with 
criteria defined by the Government. For instance, contractors can 
process requisitions, maintain stock control records, perform storage 
and warehousing, and make local procurements of items specified as 
deliverables in the contract.
    (3) The responsibility for administrative fund control must be 
retained in-house. The contractor can process all required paperwork up 
to funds obligation which must be done by the Government employee 
designated as responsible for funds control. The contractor can also 
process such documents as reports of survey and adjustments to stockage 
levels, but approval must rest with the Accountable Officer. In all 
cases, the administrative control of funds must be retained by the 
Government since contractors or their employees cannot be held 
responsible for violations of the United States Code.
    (d) Cost Comparison Process. If performance of a commercial activity 
by DoD personnel cannot be justified under national defense, non-
availability of commercial source, or patient care criteria, than a full 
cost comparison shall be conducted in accordance with part II of the 
Supplement to OMB Circular No. A-76, part III of the Supplement to OMB 
Circular No. A-76, and part IV of the Supplement to OMB Circular A-76, 
to determine if performance by DoD employees is justified on the basis 
of lower cost (unless the criteria of Sec. 169a. and Sec. 169a. are 
met). The conclusion that a commercial activity will be cost compared 
reflects a management decision that the work need not be accomplished by 
military personnel. Therefore, all direct personnel costs shall be 
estimated on the basis of civilian performance. Funds shall be budgeted 
to cover either the cost of the appropriate in-house operation required 
to accomplish the work or the estimated cost of the contract. Neither 
funds nor manpower authorizations shall be removed from the activity's 
budget in anticipation of the outcome of a study.
    (1) Notification. (i) Congressional notification. DoD Components 
shall notify Congress of the intention to do a cost comparison involving 
46 or more DoD civilian personnel. DoD Components shall annotate the 
notification when a cost comparison is planned at an activity listed in 
the report to Congress on core logistics (see section 169a.9(a)(1)(ii)). 
The DoD Component shall notify the ADS(P&L) of any such intent at least 
5 working days before the Congressional notification. The cost 
comparison process begins on the date of Congressional notification.
    (ii) DoD employee notification. DoD Components shall, in accordance 
with 10 U.S.C. 2467(b), at least monthly during the development and 
preparation of

[[Page 894]]

the performance work statement (PWS) and management study, consult with 
DoD civilian employees who will be affected by the cost comparison and 
consider the views of such employees on the development and preparation 
of the PWS and management study. DoD Components may consult with such 
employees more frequently and on other matters relating to the cost 
comparison. In the case of DoD employees represented by a labor 
organization accorded exclusive recognition under 5 U.S.C. 7111, 
consultation with representatives of the labor organization satisfies 
the consultation requirement. Consultation with nonunion DoD civilian 
employees may be through such means as group meetings. Alternatively, 
DoD civilian employees may be invited to designate one or more 
representatives to speak for them. Other methods may be implemented if 
adequate notice is provided to the nonunion DOD civilian employees and 
the right to be represented during the consultations is ensured.
    (iii) Local notification. It is suggested that upon starting the 
cost comparison process, the installation make an announcement of the 
cost comparison, including a brief explanation of the cost-comparison 
process to the employees of the activity and the community. The 
installations' labor relations specialist also should be apprised to 
ensure appropriate notification to employees and their representatives 
in accordance with applicable collective bargaining agreements. Local 
Interservice Support Coordinators (ISCs) and the Chair of the 
appropriate Joint Interservice Regional Support Group (JIRSG) also 
should be notified of a pending cost comparison.
    (2) Performance Work Statement (PWS). (i) The PWS and its Quality 
Assurance Plan shall be prepared in accordance with part II of the 
Supplement to OMB Circular No. A-76 5 for full cost comparison, 
simplified cost comparisons, and direct conversions of DoD personnel 
commercial activities. The PWS shall include reasonable performance 
standards that can be used to ensure a comparable level of performance 
for both Government and contractor and a common basis for evaluation. 
Employees and/or their bargaining unit representatives should be 
encouraged to participate in preparing or reviewing the PWS.
    (ii) Each DoD Component shall:
    (A) Prepare PWSs that are based on accurate and timely historical or 
projected workload data and that provide measurable and verifiable 
performance standards.
    (B) Monitor the development and use of prototype PWSs.
    (C) Review and initiate action to correct disagreements on PWS 
discrepancies.
    (D) Approve prototype PWSs for Component-wide use.
    (E) Coordinate these efforts with the other DoD Components to avoid 
duplication and to provide mutual assistance.
    (iii) Guidance on Government Property:
    (A) For the purposes of this instruction, Government property is 
defined in accordance with the 48 CFR part 45.
    (B) The decision to offer or not to offer Government property to a 
contractor shall be determined by a cost-benefit analysis justifying 
that the decision is in the government's best interest. The 
determination on Government property must be supported by current, 
accurate, complete information and be readily available for the 
independent reviewing activity. The design of this analysis shall not 
give a decided advantage or disadvantage to either in-house or contract 
competitors. The management of Government property offered to the 
contractor shall also be in compliance with 48 CFR part 45.
    (iv) If a commercial activity provides critical or sensitive 
services, the PWS shall include sufficient data for the in-house 
organization and commercial sources to prepare a plan for expansion in 
emergency situations.
    (v) DoD Components that provide interservice support to other DoD 
Components or Federal agencies through interservice support agreements 
or other arrangements shall ensure that the PWS includes this work load 
and is coordinated with all affected Dod Components and Federal 
Agencies.
    (vi) If there is a requirement for the commercial source to have 
access to

[[Page 895]]

classified information in order to provide the product or service, the 
commercial source shall be processed for a facility security clearance 
under the Defense Industrial Security Program in accordance with DoD 
Directive 5220.22 \10\ and DoD Regulation 5220.22-R.\11\ However, if no 
bona fide requirement for access to classified information exists, no 
action shall be taken to obtain security clearance for the commercial 
source.
---------------------------------------------------------------------------

    \10\ See footnote 1 to Sec. 169a.1(a).
    \11\ See footnote 1 to Sec. 169a.1(a).
---------------------------------------------------------------------------

    (vii) Employees of commercial sources who do not require access to 
classified information for work performance, but require entry into 
restricted areas of the installation, may be authorized unescorted entry 
only when the provisions of DoD Regulation 5200.2-R \12\ apply.
---------------------------------------------------------------------------

    \12\ See footnote 1 to Sec. 169a.1(a).
---------------------------------------------------------------------------

    (3) Management Study. A management study shall be performed to 
analyze completely the method of operation necessary to establish the 
most efficient and cost-effective in-house organization (MEO) needed to 
accomplish the requirements in the PWS. The MEO must reflect only 
approved resources for which the commercial activity has been 
authorized. As a part of the management study, installations should 
determine if specific requirements can be met through an Inter/
Intraservice Support Agreement (ISA) with other activities or Government 
Agencies which have excess capacity or capability.
    (i) The commercial activity management study is mandatory. Part III 
of the Supplement to OMB Circular No. A-76 provides guidance on how to 
conduct the management study. The study shall identify essential 
functions to be performed, determine performance factors, organization 
structure, staffing, and operating procedures for the most efficient and 
cost effective in-house performance of the commercial activity. The MEO 
becomes the basis of the Government estimate for the cost comparison 
with potential contractors. In this context, ``efficient'' (or cost-
effective) means that the required level of workload (output, as 
described in the performance work statement) is accomplished with as 
little resource consumption (input) as possible without degradation in 
the required quality level of products or services.
    (ii) DoD Components have formal programs and training for the 
performance of management studies, and those programs are appropriate 
for teaching how to conduct commercial activity management studies. Part 
III of the Supplement to OMB Circular No. A-76 does not purport to 
replace the DoD Component's own management techniques, but merely to 
establish the basic criteria and the interrelationship between the 
management study and the PWS.
    (iii) If a commercial activity provides critical or sensitive 
services, the management study shall include a plan for expansion in 
emergency situations.
    (iv) Early in the management study, management will solicit the 
views of the employees in the commercial activity under review, and/or 
their representatives for their recommendations as to the MEO or ways to 
improve the method of operation.
    (v) The management study will be the basis on which the DoD 
Component certifies that the Government cost estimate is based on the 
most efficient and cost effective organization practicable.
    (vi) Implementation of the MEO shall be initiated no later than 1 
month after cancellation of the soliciation and completed within 6 
months. DoD Components shall take action, within 1 month, to schedule 
and conduct a subsequent cost comparison when the MEO is not initiated 
and completed as prescribed above. Subsequent cost comparisons may be 
delayed by the DoD Component's central point of contact office, when 
situations outside the control of the DoD Component prevent timely or 
full implementation of the MEO. This authority may not be redelegated.
    (vii) DoD Components shall establish procedures to ensure that the 
in-house operation, as specified in the MEO, is capable of performing in 
accordance with the requirements of the PWS. The procedures also shall 
ensure that the resources (facilities, equipment, and personnel) 
specified in the MEO are available to the in-house operation and that 
in-house performance remains

[[Page 896]]

within the requirements and resources specified in the PWS and MEO for 
the period of the cost comparison, unless documentation to support 
changes in workload/scope is available.
    (viii) A management study is not required for simplified cost 
comparisons however, a MEO analysis and certification is required.
    (4) Cost Comparisons. Cost comparisons shall include all significant 
costs of both Government and contract performance. Common costs; that 
is, costs that would be the same for either in-house or contract 
operation, need not be computed, but the basis of those common costs 
must be identified and included in the cost comparison documentation. 
Part IV of the Supplement to OMB Circular A-76 (Cost Comparison 
Handbook) provides the basic guidance for conducting full cost 
comparisons. Appendix D provides guidance for conducting simplified cost 
comparisons. The supplemental guidance contained below is intended to 
establish uniformity and to ensure all factors are considered when 
making cost comparisons. Deviation from the guidance contained in part 
IV of the Supplement to OMB Circular A-76, will not be allowed, except 
as provided in the following subparagraphs.
    (i) In-house Cost Estimate. (A) The in-house cost estimate shall be 
based on the most efficient and cost-effective in-house organization 
needed to accomplish the requirements in the PWS.
    (B) Heads of DoD Components or their designees shall certify that 
the in-house cost estimate is based on the most efficient and cost-
effective operation practicable. Such certification shall be made before 
the bid opening or the date for receipt of initial proposals.
    (C) The ASD(P&L) shall provide inflation factors for adjusting costs 
for the first and subsequent performance periods. These factors shall be 
the only acceptable factors for use in cost comparisons. Inflation 
factors for outyear (second and subsequent) performance periods will not 
be applied to portions of the in-house estimate that are comparable with 
those portions of the contract estimate subject to economic price 
adjustment clauses.
    (D) Military positions in the organization under cost comparison 
shall be converted to civilian positions for costing purposes. Civilian 
grades and series shall be based on the work described in the PWS and 
the MEO, determined by the management study rather than on the current 
organization structure.
    (E) DoD Components shall not use the DLA Wholesale Stock Fund Rate 
and/or the DLA Direct Delivery rate for supplies and materials as 
reflected in paragraph 3.a. (1) and (2) of part IV of the Supplement to 
OMB Circular No. A-76. The current standard and pricing formula includes 
full cost under the Defense Business Operations Fund (DBOF). No further 
mark-up is required.
    (F) DoD Components shall assume for the purpose of depreciation 
computations that residual value is equal to the disposal values listed 
in Appendix C of part IV of the Supplemental to OMB Circular No. 76 
(Cost Comparison Handbook) if more precise figures are not available 
from the official accounting records or other knowledgeable authority. 
Therefore, the basis for depreciation shall be the original cost plus 
the cost of capital improvements (if any) less the residual value. The 
original cost plus the cost of capital improvements less the residual 
value shall be divided by the useful life (as projected for the 
commercial activity cost comparison) to determine the annual 
depreciation.
    (G) Purchased services which augment the current in-house work 
effort and that are included in the PWS should be included in line 3 
(other specifically attributable costs). When these purchased services 
are long-term and contain labor costs subject to economic price 
adjustment clauses, then the applicable labor portion will not be 
escalated by outyear inflation factors. In addition, purchased services 
shall be offset for potential Federal income tax revenue by applying the 
appropriate rate in Appendix D of part IV of the Supplement to OMB 
Circular A-76 (Cost Comparison Handbook) to total cost of purchased 
services.
    (H) Overhead costs shall be computed only when such costs will not 
continue in the event of contract performance. This includes the cost of 
any position (full time, part time, or intermittent) that is dedicated 
to providing support

[[Page 897]]

to the activity(ies) under cost comparison regardless of the support 
organization's location. Military positions provided overhead support 
shall be costed using current military composite standard rates that 
include PCS costs multiplied by the appropriate support factor.
    (ii) Cost of Contract Performance. (A) The contract cost estimate 
shall be based on firm bids or negotiated proposals solicited in 
accordance with the FAR and the DoD FAR Supplement (DFARS) for full cost 
comparisons. Existing contract prices (such as those from GSA Supply 
Schedules) will not be used in a cost comparison. For simplified cost 
comparisons, the guidance in Appendix C of this part applies.
    (B) Standby costs are costs incurred for the upkeep of property in 
standby status. Such costs neither add to the value of the property nor 
prolong its life, but keep it in efficient operating condition or 
available for use. When an in-house activity is terminated in favor of 
contract performance and an agency elects to hold Government equipment 
and facilities on standby solely to maintain performance capability, 
this is a management decision, and such standby costs will not be 
charged to the cost of contracting.
    (C) A specific waiver is required to use contract administration 
factors that exceed the limits established in Table 3-1 of part IV of 
the Supplement to OMB Circular No. A-76 (Cost Comparison Handbook). The 
reason for the deviation from the limits, the supporting alternative 
computation, and documentation supporting the alternative method, shall 
be provided to the DoD Component's central point of contact office for 
advance approval on a case-by-case basis. The authority may not be 
redelegated. ASD(A&L) shall be notified within 30 days of any such 
decisions.
    (D) The following guidance pertains to one-time conversion costs:
    (1) Material Related Costs. The cost factors below shall be used, if 
more precise costs are not known, to estimate the cost associated with 
disposal/transfer of excess government material which result from a 
conversion to contract performance:

------------------------------------------------------------------------
                                                              Percentage
                                                              of current
                                                             replacement
                                                                 cost   
------------------------------------------------------------------------
Packing, crating , and handling (PCH)......................         3.5 
Transportation.............................................         3.75
------------------------------------------------------------------------

    (2) Labor-Related Costs. If unique circumstances prevail when a 
strict application of the 2 percent factor for computation of severance 
pay results in a substantial overstatement or understatement of this 
cost, an alternative methodology may be employed. The reason for the 
deviation from this standard, the alternative computation, and 
documentation supporting the alternative method shall be provided to the 
appropriate DoD Component's central point of contact office for advance 
approval on a case-by-case basis. This authority may not be redelegated.
    (3) Other Transition Costs. Normally, government personnel 
assistance after the contract start date (to assist in transition from 
in-house performance to contract performance) should not be necessary. 
When transition assistance will not be made available, this condition 
should be stated clearly in the solicitation so that contractors will be 
informed that they will be expected to meet full performance 
requirements from the first date of the contract. Also, when 
circumstances require full performance on the contract start date, the 
solicitation shall state that time will be made available for contractor 
indoctrination prior to the start date of the contract. The inclusion of 
personnel transition costs in a cost comparison requires advance 
approval of the DoD Component's central point of contact office. This 
authority may not be redelegated.
    (E) Gain or Loss on Disposal/Transfer of Assets. If more precise 
costs are not available from the Defense Reutilization and Marketing 
Office or appropriate authority, then:
    (1) The same factors for PCH and transportation costs as prescribed 
in Sec. 169a.12E(ii)(D)(1) for the costs associated with disposal/
transfer of materials may be used.
    (2) The estimated disposal value may be calculated from the net book 
value as derived from the table in Appendix C of part IV of the 
Supplement to OMB

[[Page 898]]

 Circular No. A-76 (Cost Comparison Handbook), minus the disposal/
transfer costs. This figure shall be entered as a gain or loss on line 
11 or line 13 of the cost comparison form as appropriate.

    Note: If a cost-benefit analysis, as prescribed in 
Sec. 169a.12(B)(iii), indicates that the retention of Government-owned 
facilities, equipment, or real property for use elsewhere in the 
Government is cost advantageous to the Government, then the cost 
comparison form shall reflect a gain to the Government and therefore a 
decrease to the cost of contracting on line 11 or line 13 of the cost 
comparison form as appropriate.

[50 FR 40805, Oct. 7, 1985, as amended at 57 FR 29209, July 1, 1992]



Sec. 169a.16  Independent review.

    (a) The estimates of in-house and contracting costs that can be 
computed before the cost comparison shall be reviewed by a qualified 
activity, independent of the Task Group preparing the cost comparison. 
This review shall be completed far enough in advance of the bid or 
initial proposal opening date to allow the DoD Component to correct any 
discrepancies found before sealing the in-house cost estimate.
    (b) The independent review shall substantiate the currency, 
reasonableness, accuracy, and completeness of the inhouse estimate. The 
review shall ensure that the in-house cost estimate is based on the same 
required services, performance standards, and workload contained in the 
solicitation. The reviewer shall scrutinize and attest to the adequacy 
and authenticity of the supporting documentation. Supporting 
documentation shall be sufficient to require no additional 
interpretation.
    (c) The purpose of the independent review is to ensure costs have 
been estimated and supported in accordance with provisions of this 
Instruction. If no (or only minor) discrepancies are noted during this 
review, the reviewer indicates the minor discrepancies, signs, dates, 
and returns the CCF to the preparer. If significant discrepancies are 
noted during the review, the discrepancies shall be reported to the 
preparer for recommended correction and resubmission.
    (d) The independent review is not required for simplified cost 
comparisons.
[50 FR 40805, Oct. 7, 1985, as amended at 57 FR 29210, July 1, 1992]



Sec. 169a.17  Solicitation considerations.

    (a) Every effort must be made to avoid postponement or cancellation 
of CA solicitations even if there are significant changes, omissions, or 
defects in the Government's in-house cost estimate. Such corrections 
shall be made before the expiration of bids or proposals and may require 
the extensions of bids or proposals. When there is no alternative, 
contracting officers must clearly document the reason(s).
    (b) Bidders or offerers shall be informed that an in-house cost 
estimate is being developed and that a contract may or may not result.
    (c) Bids or proposals shall be on at least a 3-year multi-year basis 
(when appropriate) or shall include prepriced renewal options to cover 2 
fiscal years after the initial period.
    (d) All contracts awarded as a result of a conversion (whether or 
not a cost comparison was performed) shall comply with all requirements 
of the FAR and DFARS.
    (e) Solicitations shall be restricted for preferential procurement 
when the requirements applicable to such programs (such as, small 
business set-asides or other required sources of supplies and services) 
are met, in accordance with the FAR.
    (f) Solicitations will not be restricted for preferential 
procurement unless the contracting officer determines that there is a 
reasonable expectation that the commercial prices will be fair and 
reasonable, in accordance with the FAR.
    (g) Contract defaults may result in temporary performance by 
Government personnel or other suitable means; such as, an interim 
contract source. Personnel detailed to such a temporary assignment 
should be clearly informed that they will return to their permanent 
assignment when a new contract is awarded. If the default occurs within 
the first year of contract performance, the following procedures apply:
    (1) If the Government was the next lowest bidder/offerer, and in-
house performance is still feasible, the function

[[Page 899]]

may be returned to in-house performance. If in-house performance is no 
longer feasible, the contracting officer shall obtain the requirement by 
contract in accordance with the requirements of the FAR, 48 CFR part 49. 
A return to in-house performance under the above criteria shall be 
approved by the DoD Component's central point of contact office. This 
authority may not be redelegated.
    (2) If the contract wage rates are no longer valid or if the 
contracting officer, after a review of the availability of the next 
lowest responsible and responsive bidders/offerers, determines that 
resolicitation is appropriate, the Government may submit a bid for 
comparison with other bids/offers from the private sector. Submission of 
a Government bid requires a determination by the DoD Component that 
performance by DoD employees is still feasible and that a likelihood 
exists that such performance may be more economical than performance by 
contract. In such cost comparisons, the conversion differentials will 
not be applied to the costs of either in-house or contract performance.
    (h) If contract default occurs during the second or subsequent year 
of contract performance, the procedures of Sec. 169a.8(b)(2)(i) of this 
part apply.
    (1) Grouping of Commercial Activities.
    (i) The installation commander shall determine carefully which CAs 
should be grouped in a single solicitation. The installation commander 
should keep in mind that the grouping of commercial activities can 
influence the amount of competition (number of commercial firms that 
will bid or submit proposals) and the eventual cost to the Government.
    (ii) [Reserved]
    (2) The installation commander shall consider the adverse impacts 
that the grouping of commercial activities into a single solicitation 
may have on small and small disadvantaged business concerns. Commercial 
activities being performed wholly by small or small disadvantaged 
businesses will not be incorporated into a cost comparison unless 
consolidation is necessary to meet mission requirements. Actions must be 
taken to ensure that such contractors are not displaced merely to 
accomplish consolidation. Similarly, care must be taken so that 
nonincumbent small and small disadvantaged business contractors are not 
handicapped or prejudiced unduly from competing effectively at the prime 
contractor level.
    (3) In developing solicitations for commercial activities, the 
procurement plan should reflect an analysis of the advantages and 
disadvantages to the Government that might result from making more than 
one award. The decision to group commercial activities should reflect an 
analysis of all relevant factors including the following:
    (A) The effect on competition.
    (B) The duplicative management functions and costs to be eliminated 
through grouping.
    (C) The economies of administering multifunction vs. single function 
contracts, including cost risks associated with the pricing structure of 
each.
    (D) The feasibility of separating unrelated functional tasks or 
groupings.
    (E) The effect grouping will have on the performance of the 
functions.
    (4) When the solicitation package includes totally independent 
functions which are clearly divisible, severable, limited in number, and 
not price interrelated, they shall be solicited on the basis of an ``any 
or all'' bid or offer. Commerical bidders or offerors shall be permitted 
to submit bids or offers on one or any combination of the functions 
being solicited. These bids or offers shall be evaluated to determine 
the lowest aggregate contract cost to the Government. This lowest 
aggregate contract cost then will be compared to the in-house cost 
estimate based on the MEO for performance of the functions in the single 
solicitation. The procedures in part IV of the Supplement to OMB 
Circular No. A-76 (Cost Comparison Handbook) apply.
    (5) There are instances when this approach to contracting for CAs 
may not apply; such as, situations when physical limitations of site 
(where the activities are to be performed) preclude allowing more than 
one contractor to perform, when the function cannot be divided for 
purposes of performance accountability, or for other national security 
considerations. However, if an ``all or none'' solicitation is issued, 
the

[[Page 900]]

decision to do so must include a cost analysis to reflect that the ``all 
or none'' solicitation is less costly to the Government or an analysis 
indicating it is otherwise in the best interest of the Government, all 
factors considered.
    (6) It is recognized that in some cases, decisions will result in 
the elimination of prime contracting opportunities for small business. 
In such cases special measures shall be taken. At a minimum, small and 
small disadvantaged business concerns shall be given preferential 
consideration by all competing prime contractors in the award of 
subcontracts. For negotiated procurements the degree to which this is 
accomplished will be a weighted factor in the evaluation and source 
selection process leading to contract award.
    (7) The contract files shall be documented fully to demonstrate 
compliance with these procedures.
    (i) If no bids or proposals, or no responsive or responsible bids or 
proposals are received in response to a solicitation, the in-house cost 
estimate shall remain unopened. The contracting officer shall examine 
the solicitation to ascertain why no responses were received. Depending 
on the results of this review, the contracting officer shall consider 
restructuring the requirement, if feasible and reissue it under 
restricted or unrestricted solicitation procedures, as appropriate.
    (j) Continuation of an in-house CA for lack of a satisfactory 
commercial source will not be based upon lack of response to a 
restricted solicitation.
    (k) The guidance of subparagraph E.3.f. applies to sumplified cost 
comparisons and direct conversions of military personnel CAs.
    (l) To ensure that bonds and/or insurance requirements are being 
used in the best interest of the Government, as a general rule, 
requirements (for other than construction related services) above the 
levels established in the FAR and DFARS should not be included in 
acquisitions.
[50 FR 40805, Oct. 7, 1985, as amended at 56 FR 27901, June 18, 1991; 57 
FR 29210, July 1, 1992]



Sec. 169a.18  Administrative appeal procedures.

    (a) Appeals of Cost Comparison Decisions. (1) Each DoD Component 
shall establish an administrative appeals procedure to resolve questions 
from directly affected parties relating to determinations resulting from 
cost comparisons performed in compliance with this part. The appeal 
procedure will not apply to questions concerning the following:
    (i) Award to one contractor in preference to another;
    (ii) DoD management decisions.
    (2) The appeals procedure is to provide an administrative safeguard 
to ensure that DoD Component decisions are fair, equitable, and in 
accordance with procedures in this part. The procedure does not 
authorize an appeal outside the DoD Component or a judicial review.
    (3) The appeals procedure shall be independent and objective and 
provide for a decision on the appeal within 30 calendar days of receipt 
of the appeal. The decision shall be made by an impartial official at a 
level organizationally higher than the official who approved the cost 
comparison decision. The appeal decision shall be final, unless the DoD 
Component procedures provide for further discretionary review within the 
DoD Component.
    (4) All detailed documentation supporting the initial cost 
comparison decision shall be made available to directly affected parties 
upon request when the initial decision is announced. The detailed 
documentation shall include, at a minimum, the following: the in-house 
cost estimate with detailed supporting documentation (see 
Sec. 169a.5(c)(ii) of this part), the completed CCF, name of the 
tentative winning contractor (if the decision is to contract), or the 
price of the bidder whose bid or proposal would have been most 
advantageous to the Government (if the decision is to perform in-house). 
If the documentation is not available when the initial decision is 
announced, the time alloted for submission of appeals shall be extended 
the number of days equal to the delay.
    (5) To be considered eligible for review under the DoD Component 
appeals procedures, appeals shall:
    (i) Be received by the DoD Component in writing within 15 working 
days

[[Page 901]]

after the date the supporting documentation is made available to 
directly affected parties.
    (ii) Address specific line items on the CCF and the rationale for 
questioning those items.
    (iii) Demonstrate that the result of the appeal may change the 
decision.
    (b) Appeals of Simplified Cost Comparisons and Direct Conversions.
    (1) Directly affected parties may appeal decision to convert to 
contract based on a simplified cost comparison involving 11-45 DoD 
civilian employees or a direct conversion involving 10 or fewer DoD 
civilian employees. The appeal must address reasons why fair and 
reasonable prices will not be obtainable.
    (2) Each DoD Component shall establish an administrative appeal 
procedure that is independent and objective; Installation Commanders 
must make available, upon request, the documentation supporting the 
decision to directly convert activities; appeals of direct conversions 
must be filed within 30 calendar days after the decision is announced in 
the Commerce Business Daily and/or Federal Register, and the supporting 
documentation is made available; an impartial official one level 
organizationally higher than the official who approved the direct 
conversion decision shall hear the appeal; officials shall provide an 
appeal decision within 30 calendar days of receipt of the appeal.
    (c) Since the appeal procedure is intended to protect the rights of 
all directly affected parties, the DoD Component's procedures, as well 
as the decision upon appeal, will not be subject to negotiation, 
arbitration, or agreement.
    (d) DoD Components shall include administrative appeal procedures as 
part of their implementing documents.
[50 FR 40805, Oct. 7, 1985, as amended at 57 FR 29210, July 1, 1992]



Sec. 169a.19  Study limits.

    No DoD funds shall be available to perform any cost study pursuant 
to the provisions of OMB Circular A-76 if the study being performed 
exceeds a period of 24 months after initiation of such study with 
respect to a single function activity or 48 months after initiation of 
such study for a multi-function activity.
[60 FR 67328, Dec. 29, 1995]



                    Subpart C--Reporting Requirements



Sec. 169a.21  Reporting requirements.

    (a) Inventory and Review Schedule (Report Control Symbol DD-A&T(A) 
1540). See Sec. 169a.8(a) of this part.
    (b) Commercial Activities Management Information System (CAMIS) 
(Report Control Symbol DD-A&T(Q) 1542). (1) The purpose of CAMIS is to 
maintain an accurate DoD data base of commercial activities that undergo 
an OMB Circular A-76 cost comparison and CAs that are converted directly 
to contract without a cost comparison. The CAMIS is used to provide 
information to the Congress, Office of Management Budget (OMB), General 
Accounting Office (GAO), OSD, and others. The CAMIS is divided into two 
parts. Part I contains data on CAs that undergo cost comparison. Part II 
contains data on commercial activities converted to contract without a 
full cost comparison.
    (2) The CAMIS report shall be submitted in accordance with the 
procedures in Appendix C.
    (c) Congressional Data Reports on CA (Report Control Symbol DD-
A&T(A&AR) 1949) and Reports on savings on Costs from Increased Use of 
DoD Civilian Personnel (Report Control Symbol DD-A&T(AR) 1950). To 
insure consistent application of the requirements stated in 10 U.S.C. 
2461 and 2463, the following guidance is provided:
    (1) The geographic scope of section 10 U.S.C. 2461 applies to the 
United States, its territories and possessions, the District of 
Columbia, and the Commonwealth of Puerto Rico.
    (2) Section 10 U.S.C. 2461 applies to proposed conversions of DoD 
CAs that on October 1, 1980, were being performed by more than forty-
five DoD civilian employees. 10 U.S.C. 2463 applies to conversions from 
contract to in-house involving 50 or more contractor employees.
    (3) DoD Components must not proceed with a CA study until 
notification to Congress, as required by 10 U.S.C.

[[Page 902]]

2461. DoD Components shall notify the ASD(ES) of any such intent at 
least 5 working days before congressional notification.
    (4) DoD Components shall annotate announcements to Congress when a 
cost comparison is planned at an activity listed in the report to 
Congress on Core Logistics (see Sec. 169a.8(b)(1)(i)(2) of this part).
    (5) The DoD Components shall notify Congress, at least 5 working 
days before sending the detailed summary report required by 10 U.S.C. 
2461 to Congress. The detailed summary of the cost shall include: the 
amount of the offer accepted for the performance of the activity by the 
private contractor; the costs and expenditures that the Government will 
incur because of the contract; the estimated cost of performance of the 
activity by the most efficient Government organization; a statement 
indicating the life of the contract; and certifications that the entire 
cost comparison is available, and that the Government calculation for 
the cost of performance of such function by DoD employees is based on an 
estimate of the most efficient and cost-effective organization for 
performance of such function by DoD employees.
    (6) The potential economic effect on the employees affected, the 
local community, and the Federal Government of contracting for 
performance of the function shall be included in the report to accompany 
the above certifications, if more than 75 total employees (including 
military and civilian, both permanent and temporary) are potentially 
affected. It is suggested that the Army Corps of Engineers' model (or 
equivalent) be used to generate this information. The potential impact 
on affected employees shall be included in the report, regardless of the 
number of employees involved. Also include in the report a statement 
that the decision was made to convert to contractor performance, the 
projected date of contract award, the projected contract start date, and 
the effect of contracting the function on the military mission of that 
function.
    (7) By December 15th of each year, each DoD Component shall submit 
to the ASD(P&L) the data required by 10 U.S.C. 2461(c). In describing 
the extent to which CA functions were performed by DoD contractors 
during the preceding fiscal year, include the estimated number of work 
years for the in-house operation as well as for contract operation 
(including percentages) by major OSD functional areas in Appendix A to 
this part; such as, Social Services, Health Services, Installation 
Services, etc. For the estimate of the percentage of CA functions that 
will be performed in-house and those that will be performed by contract 
during the fiscal year during which the report is submitted, include the 
estimated work years for in-house CAs as well as for contracted CAs and 
the rationale for significant changes when compared to the previous 
year's data. Also, include the number of studies you expect to complete 
in the next fiscal year showing total civilian and military FTEs.
[50 FR 40805, Oct. 7, 1985, as amended at 57 FR 29210, July 1, 1992; 60 
FR 67329, Dec. 29, 1995]



Sec. 169a.22  Responsibilities.

    The responsibilities for implementing the policies and procedures of 
the DoD CA Program are prescribed in DoD Directive 4100.15 (32 CFR part 
169) and appropriate paragraphs of this part.
[57 FR 29210, July 1, 1992]

   Appendix A to Part 169a--Codes and Definitions of Functional Areas

    This list of functional codes and their definitions does not 
restrict the applicability or scope of the commerical activity Program 
within DoD. Section B. of DoD Directive 4100.15 defines the 
applicability and scope of the program. The commerical activity program 
still applies to CAs not defined in this listing. These codes and 
definitions are a guide to assist reporting. As new functions are 
identified, codes will be added or existing definitions will be 
expanded.

                             Social Services

    G001  Care of Remains of Deceased Personnel and/or Funeral Services. 
Includes CAs that provide mortuary services, including transportation 
from aerial port of embarkation (APOE) to mortuary of human remains 
received from overseas mortuaries, inpection, restoration, provision of 
uniform and insignia, dressing, flag, placement in casket, and 
preparation for onward shipment.

[[Page 903]]

    G008  Commissary Store Operation. Includes CAs that provide all 
ordering, receipt, storage, stockage, and retailing for commissaries. 
Excludes procurement of goods for issue or resale.
    G008A: Shelf Stocking.
    G008B: Check Out.
    G008C: Meat Processing.
    G008D: Produce Processing.
    G008E: Storage and Issue.
    G008F: Other.
    G008G: Troop Subsistance Issue Point.
    G009  Clothing Sales Store Operation. Includes commercial activities 
that provide ordering, receipt, storage, stockage, and retailing of 
clothing. Stores operated by the Army and Air Force Exchange Services, 
Navy Exchange Services, and Marine Corps Exchange Services are excluded.
    G010  Recreational Library Services. Includes operation of libraries 
maintained primarily for off-duty use by military personnel and their 
dependents.
    G011  Other Morale, Welfare, and Recreation Services. Operation of 
commercial activities maintained primarily for the off-duty use of 
military personnel and their dependents, including both appropriated and 
partially nonappropriated fund activities. The operation of clubs and 
messes, and morale support activities are included in code G011. 
Examples of activities performing G011 functions are arts and crafts, 
entertainment, sports and athletics, swimming, bowling, marina and 
boating, stables, youth activities, centers, and golf. DoD Directive 
1015.1 \1\ contains amplification of the categories reflected below. 
(NOTE: commercial activities procedures are not mandatory for functions 
staffed solely by civilian personnel paid by nonappropriated funds.)
---------------------------------------------------------------------------

    \1\ See footnote 1 to Sec. 169.1(a).
---------------------------------------------------------------------------

    G011A: All Category II Nonappropriated Fund Instrumentalities 
(NAFIs), except Package Beverage Branch.
    G011B: Package Beverage Branch.
    G011C: All Category IIIa NAFIs.
    G011D: All Category IIIb1, except Libraries.
    G011E: Category IIIb2 Arts and Crafts.
    G011F: Category IIIb2 Music & Theatre.
    G011G: Category IIIb2 Outdoor Recreation.
    G011H: Category IIIb2 Youth Activities.
    G011I: Category IIIb2 Child Development Service.
    G011J: Category IIIb2 Sports--Competitive.
    G011K: All Category IIIb3 except Armed Forces Recreation Center 
(AFRC) Golf Bowling, and membership associations converted from Category 
VI.
    G011L: Category IIIb3 AFRC.
    G011M: Category IIIb3 Golf.
    G011N: Category IIIb3 Bowling.
    G011O: Category IIIb3 membership associations converted from 
Category VI.
    G011P: Category III Information Tour and Travel (ITT).
    G011Q: All Category IV.
    G011R: All Category V.
    G011S: All Category VI, except those converted to Category IIIb3.
    G011T: All Category VII.
    G011U: All Category VIII, except billeting and hotels.
    G011V: Category VIII Billeting.
    G011W: Category VIII Hotels.
    G012  Community Services. DoD Directive 1015.1 contains further 
amplification of the categories.
    G012A: Information and Referral.
    G012B: Relocation Assistance.
    G012C: Exceptionl Family Member.
    G012D: Family Advocacy (Domestic Violence).
    G012E: Foster Care.
    G012F: Family Member Employment.
    G012G: Installation Volunteer Coordination.
    G012H: Outreach.
    G012I: Volunteer Management.
    G012J: Office Management.
    G012K: Consumer Affairs/Financial Assistance.
    G012L: General and Emergency Family Assistance.
    G900  Chaplain Activities and Support Services. Includes commercial 
activities that provide non-military unique support services that 
supplement the command religious program such as non-pastoral 
counseling, organists, choir directors, and directions of religious 
education. The command religious program, which includes chaplains and 
enlisted support personnel, is a Governmental function and is excluded 
from this category.
    G901  Berthing BOQ/BEQ. Includes commercial activities that provide 
temporary or permanent accommodations for officer or enlisted personnel. 
Management of the facility, room service, and daily cleaning are 
included.
    G904  Family Services. Includes commercial activities that perform 
various social services for families, such as family counseling, 
financial counseling and planning, the operation of an abuse center, 
child care center, or family aid center.
    G999  Other Social Services. This code will only be used for unusual 
circumstances and will not be used to report organizations or work that 
can be accommodated under a specifically defined code.

                             Health Services

    H101  Hospital Care. Includes commercial activities that provide 
outpatient and inpatient care and consultative evaluation in the medical 
specialties, including pediatrics and psychiatry; the coordination of 
health care delivery relative to the examination, diagnosis, treatment, 
and disposition of medical inpatients.

[[Page 904]]

    H102  Surgical Care. Includes commercial activities that provide 
outpatient and inpatient care and consultative evaluation in the 
surgical specialties, including obstetrics, gynecology, ophthalmology 
and otorhinolaryngology; the coordination of health care delivery 
relative to the examination, treatment, diagnosis, and disposition of 
surgical patients.
    H105  Nutritional Care. Includes commercial activities that provide 
hospital food services for inpatients and outpatients, dietetic 
treatment, counseling of patients, and nutritional education.
    H106  Pathology Services. Includes commercial activities involved in 
the operation of laboratories providing comprehensive clinical and 
anatomical pathology services; DoD military blood program and blood bank 
activities; and area reference laboratories.
    H107  Radiology Services. Includes commercial activities that 
provide diagnostic and therapeutic radiologic service to inpatients and 
outpatients, including the processing, examining, interpreting, and 
storage and retrieval of radiographs, fluorographs, and radiotherapy.
    H108  Pharmacy Services. Includes commercial activities that 
produce, preserve, store, compound, manufacture, package, control, 
assay, dispense, and distribute medications (including intravenous 
solutions) for inpatients and outpatients.
    H109  Physical Therapy. Includes commercial activities that provide 
care and treatment to patients whose ability to function is impaired or 
threatened by disease or injury; primarily serve patients whose actual 
impairment is related to neuromusculoskeletal, pulmonary, and 
cardiovascular systems; evaluate the function and impairment of these 
systems, and select and apply therapeutic procedures to maintain, 
improve, or restore these functions.
    H110  Materiel Services. Includes commercial activities that provide 
or arrange for the supplies, equipment, and certain services necessary 
to support the mission of the medical facility; responsibilities include 
procurement, inventory control, receipt, storage, quality assurance, 
issue, turn-in, disposition, property accounting, and reporting actions 
for designated medical and nonmedical supplies and equipment.
    H111  Orthopedic Services. Includes commercial activities that 
construct orthopedic appliances such as braces, casts, splints, 
supports, and shoes from impressions, forms, molds, and other 
specifications.
    H112  Ambulance Service. Includes commercial activities that provide 
transportation for personnel who are injured, sick, or otherwise require 
medical treatment, including standby duty in support of military 
activities and ambulance bus services.
    H113  Dental Care. Includes commercial activities that provide oral 
examinations, patient education, diagnosis, treatment, and care 
including all phases of restorative dentistry, oral surgery, 
prosthodontics, oral pathology, periodontics, orthodontics, endodontics, 
oral hygiene, preventive dentistry, and radiodontics.
    H114  Dental Laboratories. Includes commercial activities that 
operate dental prosthetic laboratories required to support the provision 
of comprehensive dental care; services may include preparing casts and 
models, repairing dentures, fabricating transitional, temporary, or 
orthodontic appliances, and finishing dentures.
    H115  Clinics and Dispensaries. Includes commercial activities that 
operate freestanding clinics and dispensaries that provide health care 
services. Operations are relatively independent of a medical treatment 
facility and are separable for in-house or contract performance. Health 
clinics, occupational health clinics, and occupational health nursing 
offices.
    H116  Veterinary Services. Includes commercial activities that 
provide a complete wholesomeness and quality assurance food inspection 
program, including sanitation, inspection of food received, surveillance 
inspections, and laboratory examination and analysis; a complete 
zoonosis control program; complete medical care for Government-owned 
animals; veterinary medical support for biomedical research and 
development; support to other Federal agencies when requested and 
authorized; assistance in a comprehensive preventive medicine program; 
and determination of fitness of all foods that may have been 
contaminated by chemical, bacteriological, or radioactive materials.
    H117  Medical Records Transcription. Includes commercial activities 
that transcribe, file, and maintain medical records.
    H118  Nursing Services. Includes commercial activities that provide 
care and treatment for inpatients and outpatients not required to be 
performed by a doctor.
    H119  Preventive Medicine. Includes commercial activities that 
operate wellness or holistic clinics (preventive medicine), information 
centers, and research laboratories.
    H120  Occupational Health. Includes commercial activities that 
develop, monitor, and inspect installation safety conditions.
    H121  Drug Rehabilitation. Includes commercial activities that 
operate alcohol treatment facilities, urine testing for drug content, 
and drug/alcohol counseling centers.
    H999  Other Health Services. This code will only be used for unusual 
circumstances and will not be used to report organizations or work that 
can be accommodated under a specifically defined code.

[[Page 905]]

  Intermediate, Direct, or General Repair and Maintenance of Equipment

    Definition. Maintenance authorized and performed by designated 
maintenance commercial activities in support of using activities. 
Normally, it is limited to replacement and overhaul of unserviceable 
parts, subassemblies, or assemblies. It includes (1) intermediate/
direct/general maintenance performed by fixed activities that are not 
designed for deployment to combat areas and that provide direct support 
of organizations performing or designed to perform combat missions from 
bases in the United States, and (2) any testing conducted to check the 
repair procedure. Commercial activities engaged in intermediate/direct/
general maintenance and/or repair of equipment are to be grouped 
according to the equipment predominantly handled, as follows:
    J501  Aircraft. Aircraft and associated equipment. Includes 
armament, electronic and communications equipment, engines, and any 
other equipment that is an integral part of an aircraft.
    J502  Aircraft Engines. Aircraft engines that are not repaired while 
an integral part of the aircraft.
    J503  Missiles. Missile systems and associated equipment. Includes 
mechanical, electronics, and communication equipment that is an integral 
part of missile systems.
    J504  Vessels. All vessels, including armament, electronics, 
communications and any other equipment that is an integral part of the 
vessel.
    J505  Combat Vehicles. Tanks, armored personnel carriers, self-
propelled artillery, and other combat vehicles. Includes armament, fire 
control, electronic, and communications equipment that is an integral 
part of a combat vehicle.
    J506  Noncombat Vehicles. Automotive equipment, such as tactical, 
support, and administrative vehicles. Includes electronic and 
communications equipment that is an integral part of the noncombat 
vehicle.
    J507  Electronic and Communications Equipment. Stationary, mobile, 
portable, and other electronic and communications equipment. Excludes 
electronic and communications equipment that is an integral part of 
another weapon/support system. Maintenance of Automatic Data Processing 
Equipment (ADPE) not an integral part of a communications system shall 
be reported under functional code W825; maintenance of tactical ADPE 
shall be reported under function code J999.
    J510  Railway Equipment. Locomotives of any type or gauge, including 
steam, compressed air, straight electric, storage battery, diesel 
electric, gasoline, electric, diesel mechanical locomotives, railway 
cars, and cabooses. Includes electrical equipment for locomotives and 
cars, motors, generators, wiring supplies for railway tracks for both 
propulsion and signal circuits, and on-board communications and control 
equipment.
    J511  Special Equipment. Construction equipment, weight lifting, 
power, and materiel handling equipment (MHE).
    J512  Armament. Small arms, artillery and guns, nuclear munitions, 
chemical, biological, and radiological (CBR) items, conventional 
ammunition, and all other ordnance items. Excludes armament that is an 
integral part of another weapon or support system.
    J513  Dining Facility Equipment. Dining facility kitchen appliances 
and equipment.
    J514  Medical and Dental Equipment. Medical and dental equipment.
    J515  Containers, Textiles, Tents, and Tarpaulins. Containers, 
tents, tarpaulins, other textiles, and organizational clothing.
    J516  Metal Containers. Container Express (CONEX) containers, 
gasoline containers, and other metal containers.
    J517  Training Devices and Audiovisual Equipment. Training devices 
and audiovisual equipment. Excludes maintenance of locally fabricated 
devices and functions reported under codes T807 and T900.
    J519  Industrial Plant Equipment. That part of plant equipment with 
an acquisition cost of $3,000 or more, used to cut, abrade, grind, 
shape, form, join, test, measure, heat, or otherwise alter the physical, 
electrical, or chemical properties of materiels, components, or end 
items entailed in manufacturing, maintenance, supply processing, 
assembly, or research and development operations.
    J520  Test, Measurement, and Diagnostic Equipment. Test, 
measurement, and diagnostic equipment (TMDE) that has resident in it a 
programmable computer. Included is equipment referred to as automated 
test equipment (ATE).
    J521  Other Test, Measurement, and Diagnostic Equipment. Test, 
measurement, and diagnostic equipment not classified as ATE or that does 
not contain a resident programmable computer. Includes such items as 
electronic meters, armament circuit testers, and other specialized 
testers.
    J522  Aeronautical Support Equipment. Aeronautical support equipment 
excluding TMDE (and ATE). Includes such items as ground electrical power 
carts, aircraft tow tractors, ground air conditioners, engine stands, 
and trailers. Excludes aeronautical equipment reported under J501.
    J999  Other Intermediate, Direct, or General Repair and Maintenance 
of Equipment. This code will only be used for unusual circumstances and 
will not be used to report organizations or work that can be 
accommodated under a specifically defined code.

[[Page 906]]

  Depot Repair, Maintenance, Modification, Conversion, or Overhaul of 
                                Equipment

    Definition. The maintenance performed on materiel that requires 
major overhaul or a complete rebuild of parts, assemblies, 
subassemblies, and end items, including the manufacture of parts, 
modifications, testing, and reclamation, as required. Depot maintenance 
serves to support lower categories of maintenance. Depot maintenance 
provides stocks of serviceable equipment by using more extensive 
facilities for repair than are available in lower level maintenance 
activities. (See DoD Instruction 4151.15 \2\ for further amplification 
of the category definitions reflected below.) Depot or indirect 
maintenance functions are identified by the type of equipment maintained 
or repaired.
---------------------------------------------------------------------------

    \2\ See footnote 1 to Sec. 169a.1(a).
---------------------------------------------------------------------------

    K531  Aircraft. Aircraft and associated equipment. Includes 
armament, electronics and communications equipment, engines, and any 
other equipment that is an integral part of an aircraft. Aeronautical 
support equipment not reported separately under code K548.
    K532  Aircraft Engines. Aircraft engines that are not repaired while 
an integral part of the aircraft.
    K533  Missiles. Missile systems and associated equipment. Includes 
mechanical, electronic, and communications equipment that is an integral 
part of missile systems.
    K534  Vessels. All vessels, including armament, electronics, and 
communications equipment, and any other equipment that is an integral 
part of a vessel.
    K535  Combat Vehicles. Tanks, armored personnel carriers, self-
propelled artillery, and other combat vehicles. Includes armament, fire 
control, electronics, and communications equipment that is an integral 
part of a combat vehicle.
    K536  Noncombat Vehicles. Automotive equipment, such as tactical 
support and administrative vehicles. Includes electronic and 
communications equipment that is an integral part of the vehicle.
    K537  Electronic and Communications Equipment. Stationary, mobile, 
portable, and other electronics and communications equipment. Excludes 
electronic and communications equipment that is an integral part of 
another weapon/support system. Maintenance of ADPE, not an integral part 
of a communications system, is reported under functional code W825.
    K538  Railway Equipment. Locomotives of any type or gauge, including 
steam, compressed air, straight electric, storage battery, diesel 
electric, gasoline, electric, diesel mechanical locomotives, railway 
cars, and cabooses. Includes electrical equipments for locomotives and 
cars, motors, generators, wiring supplies for railway tracks for both 
propulsion and signal circuits, and on-board communication and control 
equipment.
    K539  Special Equipment. Construction equipment, weight lifting, 
power, and materiel-handling equipment.
    K540  Armament. Small arms; artillery and guns; nuclear munitions, 
CBR items; conventional ammunition; and all other ordnance items. 
Excludes armament that is an integral part of another weapon or support 
system.
    K541  Industrial Plant Equipment. That part of plant equipment with 
an acquisition cost of $3,000 or more, used to cut, abrade, grind, 
shape, form, join, test, measure, heat, or otherwise alter the physical, 
electrical, or chemical properties of materials, components, or end 
items entailed in manufacturing, maintenance, supply, processing, 
assembly, or research and development operations.
    K542  Dining Facility Equipment. Dining facility kitchen applicances 
and equipment. This includes field feeding equipment.
    K543  Medical and Dental Equipment. Medical and dental equipment.
    K544  Containers, Textiles, Tents and Tarpaulins. Containers, tents, 
tarpaulins, and other textiles.
    K545  Metal Containers.   CONEX containers, gasoline containers, and 
other metal containers.
    K546  Test Measurement and Diagnostic Equipment. Test measurement 
and diagnostic equipment (TMDE) that has resident in it a programmable 
computer. Included is equipment referred to as automated test equipment 
(ATE).
    K547  Other Test Measurement and Diagnostic Equipment. Test 
measurement and diagnostic equipment not classfied as ATE or that does 
not contain a resident programmable computer. Includes such items as 
electronic meters, armament circuit testers, and other specialized 
testers.
    K548  Aeronautical Support Equipment. Aeronautical support equipment 
excluding TMDE (and ATE). Includes such items as ground electrical power 
carts, aircraft tow tractors, ground air conditioners, engine stands, 
and trailers. Excludes aeronautical support equipment reported under 
code K531.
    K999  Other Depot Repair, Maintenance, Modification, Conversion, or 
Overhaul of Equipment. This code will only be used for unusual 
circumstances and will not be used to report organizations or work that 
can be accommodated under a specifically defined code.

                Base Maintenance/Multifunction Contracts

    P100  Base Maintenance/Multifunction Contracts. Includes all 
umbrella-type contracts where the contractor performs more than one 
function at one or more installations. (Identify specific functions as 
nonadd entries.)

[[Page 907]]

       Research, Development, Test, and Evaluation (RDT&E) Support

    R660  RDT&E Support. Includes all effort not reported elsewhere 
directed toward support of installation or operations required for 
research, development, test, and evaluation use. Included are 
maintenance support of laboratories, operation and maintenance of test 
ranges, and maintenance of test aircraft and ships.

                          Installation Services

    S700  Natural Resource Services. Includes those commercial 
activities that provide products or services that implement natural 
resource management plans in the areas of fish, game, wildlife, 
forestry, watershed areas or ground water table, erosion control, and 
mineral deposit management. Natural resources planning and management is 
a governmental function and will not be reported.
    S701  Advertising and Public Relations Services. Includes commercial 
activities responsible for advertising and public relations in support 
of public affairs offices, installation newspapers and publications, and 
information offices.
    S702  Financial and Payroll Services. Includes commercial activities 
that prepare payroll, print checks, escrow, or change payroll accounts 
for personnnel. Includes other services normally associated with banking 
operations.
    S703  Debt Collection. Includes commercial activities that monitor, 
record, and collect debts incurred by overdrafts, bad checks, or 
delinquent accounts.
    S706  Installation Bus Services. Includes commercial activities that 
operate local, intrapost, and interpost scheduled bus services. Includes 
scheduled movement of personnel over regular routes by administrative 
motor vehicles to include taxi and dependent school bus services.
    S706A  Scheduled Bus Services.
    S706B   Unscheduled Bus Services
    S706C   Dependent School Bus Services.
    S706D   Other Bus Services.
    S708  Laundry and Dry Cleaning Services. Including commercial 
activities that operate and maintain laundry and dry cleaning 
facilities.
    S709  Custodial Services. Includes commercial activities that 
provide janitorial and housekeeping services to maintain safe and 
sanitary conditions and preserve property.
    S710  Pest Management. Includes commercial activities that provide 
control measures directed against fungi, insects, rodents, and other 
pests.
    S712  Refuse Collection and Disposal Services. Includes commercial 
activities that operate incinerators, sanitary fills, and regulated 
dumps, and perform all other approved refuse collection and disposal 
services.
    S713  Food Services. Includes commercial activities engaged in the 
operation and administration of food preparation and serving facilities. 
Excludes operation of central bakeries, pastry kitchens, and central 
meat processing facilities that produce a product and are reported under 
functional area X934. Excludes hospital food service operations (under 
code H105).
    S713A: Food Preparation and Administration.
    S713B: Mess Attendants and Housekeeping Services.
    S714  Furniture. Includes commercial activities that repair and 
refurbish furniture.
    S715  Office Equipment. Includes commercial activities that maintain 
and repair typewriters, calculators, and adding machines.
    S716  Motor Vehicle Operation. Includes commercial activities that 
operate local administrative motor transportation services. Excludes 
installation bus services reported in functional area S706.
    S716A:  Taxi Service.
    S716B:  Bus Service (unless in S706).
    S716C:  Motor Pool Operations.
    S716D:  Crane Operation (includes rigging, excludes those listed in 
T800G).
    S716E:  Heavy Truck Operation.
    S716F:  Construction Equipment Operation.
    S716I:  Driver/Operator Licensing & Test.
    S716J:  Other Vehicle Operations (Light Truck/Auto).
    S716K:  Fuel Truck Operations.
    S716M:  Tow Truck Operations.
    S717  Motor Vehicle Maintenance. Includes commercial activities that 
perform maintenance on automotive equipment, such as support and 
administrative vehicles. Includes electronic and communications 
equipment that are an integral part of the vehicle.
    S717A:  Upholstery Maintenance and Repair.
    S717B:  Glass Replacement and Window Repair.
    S717C:  Body Repair and Painting.
    S717D:  Accessory Overhaul.
    S717E:  General Repairs/Minor Maintenance.
    S717F:  Battery Maintenance and Repair.
    S717G:  Tire Maintenance and Repair.
    S717H:  Major Component Overhaul.
    S717I:  Material Handling Equipment Maintenance.
    S717J:  Crane Maintenance.
    S717K:  Construction Equipment Maintenance.
    S717L:  Frame and Wheel Alignment.
    S717M:  Other Motor Vehicle Maintenance.
    S718  Fire Prevention and Protection. Includes commercial activities 
that operate and maintain fire protection and preventive services. 
Includes routine maintenance and repair of fire equipment and the 
installation of fire prevention equipment.
    S718A:  Fire Protection Engineering.

[[Page 908]]

    S718B:  Fire Station Administration.
    S718C:  Fire Prevention.
    S718D:  Fire Station Operations.
    S718E:  Crash and Rescue.
    S718F:  Structural Fire Suppression.
    S718G:  Fire & Crash/Rescue Equipment Major Maintenance.
    S718H:  Other Fire Prevention and Protection.
    S719:  Military Clothing. Includes commercial activities that order, 
receive, store, issue, and alter military clothing and repair military 
shoes. Excludes repair of organizational clothing reported under code 
J515.
    S724:  Guard Service. Includes commercial activities engaged in 
physical security operations that provide for installation security and 
intransit protection of military property from loss or damage.
    S724A:  Ingress and egress control. Regulation of persons, material, 
and vehicles entering or exiting a designated area to provide protection 
of the installation and Government property.
    S724B:  Physical security patrols and posts. Mobile and static 
physical security guard activities that provide protection of 
installation or Government property.
    S724C:  Conventional arms, ammunition, and explosives (CAAE) 
security. Dedicated security guards for CAAE.
    S724D:  Animal control. Patrolling for, capture of, and response to 
complaints about uncontrolled, dangerous, and disabled animals on 
military installations.
    S724E:  Visitor information services. Providing information to 
installation resident and visitors about street, agency, unit, and 
activity locations.
    S724F: Vehicle impoundment. Removal, accountability, security, and 
processing of vehicles impounded on military installations.
    S724G: Registration functions. Administration, filing, processing, 
and retrieval information about privately owned items that must be 
registered on military installations.
    S724S: Other guard service.
    S725  Electrical Plants and Systems. Includes commercial activities 
that operate, maintain, and repair Government-owned electrical plants 
and systems.
    S726  Heating Plants and Systems. Includes commercial activities 
that operate, maintain, and repair Government-owned heating plants and 
systems over 750,000 British Thermal Unit (BTU) capacity. Codes Z991 or 
Z992 will be used for systems under 750,000 BTU capacity, as applicable.
    S727  Water Plants and Systems. Includes commercial activities that 
operate, maintain, and repair Government-owned water plants and systems.
    S728  Sewage and Waste Plants and Systems. Includes commercial 
activities that operate, maintain, and repair Government-owned sewage 
and waste plants and systems.
    S729  Air Conditioning and Refrigeration Plants. Includes commercial 
activities that operate, maintain, and repair Government-owned air 
conditioning and refrigeration plants over 5-ton capacity. Codes Z991 or 
Z992 shall be used for plants under 5-ton capacity as applicable.
    S730  Other Services or Utilities. Includes commercial activities 
that operate, maintain, and repair other Government-owned services or 
utilities.
    S731  Base Supply Operations. Includes commercial activities that 
operate centralized installation supply functions providing supplies and 
equipment to all assigned or attached units. Performs all basic supply 
functions to determine requirements for all requisition, receipt, 
storage, issuance, and accountability for materiel.
    S732  Warehousing and Distribution of Publications. Includes 
commercial activities that receive, store, and distribute publications 
and blank forms.
    S740  Installation Transportation Office. Includes technical, 
clerical, and administrative commercial activities that support traffic 
management services related to the procurement of freight and passenger 
service from commercial ``for hire'' transportation companies. Excludes 
restricted functions that must be performed by Government employees such 
as the review, approval, and signing of documents related to the 
obligation of funds; selection of mode or carrier; evaluation of carrier 
performance; and carrier suspension. Excludes installation 
transportation functions described under codes S706, S716, S717, T810, 
T811, T812, and T814.
    S740A: Installation Transportation Management and Administration.
    S740B: Materiel Movements.
    S740C: Personnel Movements.
    S740D: Personal Property Activities.
    S740E: Quality Control and Inspection.
    S740F: Unit Movements.
    S750  Museum Operations.
    S760  Contractor-Operated Parts Stores and Contractor-Operated Civil 
Engineering Supply Stores.
    S999  Other Installation Services. This code will only be used for 
unusual circumstances and will not be used to report organizations or 
work that can be accommodated under a specifically defined code.

                    Other Nonmanufacturing Operations

    T800  Ocean Terminal Operations. Includes commercial activities that 
operate terminals transferring cargo between overland and sealift 
transportation. Includes handling of Government cargo through commercial 
water terminals.
    T800A: Pier Operations. Includes commercial activities that provide 
stevedore and shipwright carpentry operations supporting the loading, 
stowage, and discharge of cargo

[[Page 909]]

and containers on and off ships, and supervision of operations at 
commercial piers and military ocean terminals.
    T800B: Cargo Handling Equipment. Includes commercial activities that 
operate and maintain barge derricks, gantries, cranes, forklifts, and 
other materiel handling equipment used to handle cargo within the 
terminal area.
    T800C: Port Cargo Operations. Includes commercial activities that 
load and unload railcars and trucks, pack, repack, crate, warehouse, and 
store cargo moving through the terminal, and stuff and unstuff 
containers.
    T800D: Vehicle Preparation. Includes commercial activites that 
prepare Government and privately owned vehicles (POVs) for ocean 
shipment, inspection, stowage in containers, transportation to pier, 
processing, and issue of import vehicles to owners.
    T800E: Lumber Operations. Includes commercial activities that 
segregate reclaimable lumber from dunnage removed from ships, railcars, 
and trucks; remove nails; even lengths; inspect; and return the lumber 
to inventory for reuse. Includes receipt, storage, and issue of new 
lumber.
    T800F: Materiel Handling Equipment (MHE) Operations. Includes 
commercial activities that deliver MHE to user agencies, perform onsite 
fueling, and operate special purpose and heavy capacity equipment.
    T800G: Crane Operations. Includes commercial activities that operate 
and perform first-echelon maintenance of barge derricks, gantries, and 
truck-mounted cranes in support of vessels and terminal cargo 
activities.
    T800H: Breakbulk Cargo Operations. Includes commercial activities 
that provide stevedoring, shipwright carpentry, stevedore 
transportation, and the loading and unloading of noncontainerized cargo.
    T800I: Other Ocean Terminal Operations.
    T801  Storage and Warehousing. Includes commercial activities that 
receive materiel into depots and other storage and warehousing 
facilities, provide care for supplies, and issue and ship materiel. 
Excludes installation supply in support of unit and tenet activities 
described in S731.
    T801A: Receipt. Includes commercial activities that receive supplies 
and related documents and information. This includes materiel handling 
and related actions, such as materials segregation and checking, and 
tallying incident to receipt.
    T801B: Packing and Crating of Household Goods. Includes commercial 
activities performing packing and crating operations described in T801H, 
incident to the movement or storage of household goods.
    T801C: Shipping. Includes commercial activities that deliver stocks 
withdrawn from storage to shipping. Includes onloading and offloading of 
stocks from transportation carriers, blocking, bracing, dunnage, 
checking, tallying, and materiel handling in central shipping area and 
related documentation and information operations.
    T801D: Care, Rewarehousing, and Support of Materiel. Includes 
commercial activities that provide for actions that must be taken to 
protect stocks in storage, including physical handling, temperature 
control, assembly placement and preventive maintenance of storage aids, 
and realigning stock configuration; provide for movement of stocks from 
one storage location to another and related checking, tallying, and 
handling; and provide for any work being performed within general 
storage support that cannot be identified clearly as one of the 
subfunctions described above.
    T801E: Preservation and Packaging. Includes commercial activities 
that preserve, represerve, and pack materiel to be placed in storage or 
to be shipped. Excludes application of final (exterior) shipping 
containers.
    T801F: Unit and Set Assembly and Disassembly. Includes commercial 
activities that gather or bring together items of various nomenclature 
(parts, components, and basic issue items) and group, assemble, or 
restore them to or with an item of another nomenclature (such as parent 
end item or assemblage) to permit shipment under a single document. This 
also includes blocking, bracing, and packing preparations within the 
inner shipping container; physical handling and loading; and reverse 
operation of assembling such units.
    T801G: Special Processing of Non Stock Fund-Owned Materiel. Includes 
commercial activities performing special processing actions described 
below that must be performed on Inventory Control Point (ICP)-
controlled, nonstock fund-owned materiel by technically qualified depot 
maintenance personnel, using regular or special maintenance tools or 
equipment. Includes disassembly or reassembly or reserviceable ICP-
controlled materiel being readied for movement, in-house storage, or 
out-of-house location such as a port to a commercial or DoD-operated 
maintenance or storage facility, property disposal or demilitarization 
activity, including blocking, bracing, cushioning, and packing.
    T801H: Packing and Crating. Includes commercial activities that 
place supplies in their final, exterior containers ready for shipment. 
Includes the nailing, strapping, sealing, stapling, masking, marking, 
and weighing of the exterior container. Also, includes all physical 
handling, unloading, and loading of materiel, within the packing and 
shipping area; checking and tallying material in and out; all operations 
incident to packing, repacking, or recrating for shipment, including on-
line fabrication of tailored boxes, crates, bit inserts, blocking,

[[Page 910]]

bracing and cushioning shrouding, overpacking, containerization, and the 
packing of materiel in transportation containers. Excludes packing of 
household goods and personnel effects reported under code T801B.
    T801I: Other Storage and Warehousing.
    T802  Cataloging. Includes commercial activity that prepare supply 
catalogs and furnish cataloging data on all items of supply for 
distribution to all echelons worldwide. Includes catalog files, 
preparation, and revision of all item identifications for all logistics 
functions; compilation of Federal catalog sections and allied 
publication; development of Federal item identification guides, and 
procurement identification descriptions. Includes printing and 
publication of Federal supply catalogs and related allied publications.
    T803  Acceptance Testing. Includes commercial activities that 
inspect and test supplies and materiel to ensure that products meet 
minimum requirements of applicable specifications, standards, and 
similar technical criteria; laboratories and other facilities with 
inspection and test capabilities; and activities engaged in production 
acceptance testing of ammunition, aircraft armament, mobility material, 
and other military equipment.
    T803A: Inspection and Testing of Oil and Fuel.
    T803B: Other Acceptance Testing.
    T804  Architect-Engineering Services. Includes commercial activities 
that provide Architect/Engineer (A/E) services. Excludes Engineering 
Technical Services (ETS) reported in functional area T813, and those 
required under 40 U.S.C. 541-554.
    T805  Operation of Bulk Liquid Storage. Includes commercial 
activities that operate bulk petroleum storage facilities. Includes 
operation of off-vessel discharging and loading facilities, fixed and 
portable bulk storage facilities, pipelines, pumps, and other related 
equipment within or between storage facilities or extended to using 
agencies (excludes aircraft fueling services); handling of drums within 
bulk fuel activities. Excludes aircraft fueling services reported under 
code T814.
    T806  Printing and Reproduction. Includes commercial activities that 
print, duplicate, and copy. Excludes user-operated office copying 
equipment.
    T807  Audiovisual and Visual Information Services. Includes 
commercial activities that provide base audiovisual (AV) and visual 
information (VI) support, production, depositories, technical 
documentation, and broadcasting.
    T807A: Base VI Support. Includes commercial activities that provide 
production activities that provide general support to all installation, 
base, facility or site, organizations or activities. Typically, they 
supply motion picture, still photography, television, and audio 
recording for nonproduction documentary purposes, their laboratory 
support, graphic arts, VI libraries, and presentation services.
    T807B: AV Production. Includes commercial activities that provide a 
self-contained, complete presentation, developed according to a plan or 
script, combining sound with motion media (film, tape or disc) for the 
purpose of conveying information to, or communicating with, an audience. 
(An AV production is distinguished from a VI production by the absence 
of combined sound and motion media in the latter.)
    T807C: VI Depositories. Includes commercial activities that are 
especially designed and constructed for the low-cost and efficient 
storage and furnishing of reference service on semicurrent records 
pending their ultimate disposition. Includes records centers.
    T807D: VI Technical Documentation. Includes commercial activities 
that provide a technical documentation (TECDOC) which is a continuous 
visual recording (with or without sound as an integral documentation 
component) of an actual event made for purposes of evaluation. 
Typically, TECDOC contributes to the study of human or mechanical 
factors, procedures and processes in the context of medicine, science 
logistics, research, development, test and evaluation, intelligence, 
investigations and armament delivery.
    T807E: Electronic Media Transmission. Includes commercial activities 
that transmit and receive audio and video signals for closed circuit 
local and long distance multi-station networking and broadcast 
operations.
    T807F: VI Documentation. Includes commercial activities that provide 
motion media (film or tape) still photography and audio recording of 
technical and nontechnical events, as they occur, usually not controlled 
by the recording crew. VI documentation (VIDOC) encompasses Operational 
Documentation (OPDOC) and TECDOC. OPDOC is VI (photographic or 
electronic) recording of activities, or multiple perspectives of the 
same activity, to convey information about people, places and things.
    T807G: AV Central Library (Inventory Control Point). Includes 
commercial activities that receive, store, issue, and maintain AV 
products at the central library level. May or may not include records 
center operations for AV products.
    T807K: AV or VI Design Service. Includes commercial activities that 
provide professional consultation services involving the selection, 
design, and development of AV or VI equipment or facilities.
    T808  Mapping and Charting. Includes commercial activities that 
design, compile, print, and disseminate cartographic and geodetic 
products.

[[Page 911]]

    T809  Administrative Telephone Service. Includes commercial 
activities that operate and maintain the common-user, administrative 
telephone systems at DoD installations and activities. Includes 
telephone operator services; range communications; emergency action 
consoles; and the cable distribution portion of a fire alarm, intrusion 
detection, emergency monitoring and control data, and similar systems 
that require use of a telephone system.
    T810  Air Transportation Services. Includes commercial activities 
that operate and maintain nontactical aircraft that are assigned to 
commands and installations and used for administrative movement of 
personnel and supplies.
    T811  Water Transportation Services. Includes commercial activities 
that operate and maintain nontactical watercraft that are assigned to 
commands and installations and are used for administrative movement of 
personnel and supplies.
    T811A: Water Transportation Services (except tug operations).
    T811B: Tug Operations.
    T812  Rail Transportation Services. Includes commercial activities 
that operate and maintain nontactical rail equipment assigned to 
commands and installation and used for administrative movement of 
personnel and supplies.
    T813  Engineering and Technical Services. Includes commercial 
activities that advise, instruct, and train DoD personnel in the 
installation, operation, and maintenance of DoD weapons, equipment, and 
systems.
    These services include transmitting the technical skill capability 
to DoD personnel in order for them to install, maintain, and operate 
such equipment and keep it in a high state of military readiness.
    T813A: Contractor Plant Services. Includes commercial manufacturers 
of military equipment contracted to provide technical and engineering 
services to DoD personnel. Qualified employees of the manufacturer 
furnish these services in the manufacturer plants and facilities. 
Through this program, the special skills, knowledge, experience, and 
technical data of the manufacturer are provided for use in training, 
training aid programs, and other essential services directly related to 
the development of the technical capability required to install, 
operate, maintain, supply, and store such equipment.
    T813B: Contract Field Services (CFS). Includes commercial activities 
that provide services of qualified contractor personnel who provide 
onsite technical and engineering services to DoD personnel.
    T813C: In-house Engineering and Technical Services. Includes 
commercial activities that provide technical and engineering services 
described in codes T813A and T813B above that are provided by Government 
employees.
    T813D: Other Engineering and Technical Services.
    T814  Fueling Service (Aircraft). Includes commercial activities 
that distribute aviation petroleum/oil/lubricant products. Includes 
operation of trucks and hydrants.
    T815  Scrap Metal Operation. Includes commercial activities that 
bale or shear metal scrap and melt or sweat aluminum scrap.
    T816  Telecommunication Centers. Includes commercial activities that 
operate and maintain telecommunication centers, nontactical radios, 
automatic message distribution systems, technical control facilities, 
and other systems integral to the communication center. Includes 
operations and maintenance of air traffic control equipment and 
facilities.
    T817  Other Communications and Electronics Systems. Includes 
commercial activities that operate and maintain communications and 
electronics systems not included in T809 and T816.
    T818  Systems Engineering and Installation of Communications 
Systems. Includes commercial activities that provide engineering and 
installation services, including design and drafting services associated 
with functions specified in T809, T816, and T817.
    T819  Preparation and Disposal of Excess and Surplus Property. 
Includes commercial activities that accept, classify, and dispose of 
surplus Government property, including scrap metal.
    T820  Administrative Support Services. Includes commercial 
activities that provide centralized administrative support services not 
included specifically in another functional category. These activities 
render services to multiple activities throughout an organization or to 
multiple organizations; such as, a steno or typing pool rather than a 
secretary assigned to an individual. Typical activities included are 
word processing centers, reference and technical libraries, 
microfilming, messenger service, translation services, publication 
distribution centers, etc.
    T820A: Word Processing Centers.
    T820B: Reference and Technical Libraries.
    T820C: Microfilming.
    T820D: Internal Mail and Messenger Services.
    T820E: Translation Services.
    T820F: Publication Distribution Centers.
    T820G: Field Printing and Publication. Includes those activities 
that print or reproduce official publications, regulations, and orders. 
Includes management and operation of the printing facility.
    T820H: Compliance Auditing.
    T820I: Court Reporting.
    T821  Special Studies and Analyses. Includes commercial activities 
that perform research, collect data, conduct time-motion studies, or 
pursue some other planned methodology in order to analyze a specific 
issue, system, device, boat, plane, or vehicle for management.

[[Page 912]]

    Such activities may be temporary or permanent in nature.
    T821A: Cost Benefit Analyses.
    T821B: Statistical Analyses.
    T821C: Scientific Data Studies.
    T821D: Regulatory Studies.
    T821E: Defense, Education, Energy Studies.
    T821F: Legal/Litigation Studies.
    T821G: Management Studies.
    T900  Training Devices and Simulators. Includes commercial 
activities that provide training aids, devices, simulator design, 
fabrication, issue, operation, maintenance, support, and services.
    T900A: Training Aids, Devices, and Simulator Support. Includes 
commercial activities that design, fabricate, stock, store, issue, 
receive, and account for and maintain training aids, devices, and 
simulators (does not include audiovisual production and associated 
services or audiovisual support).
    T900B: Training Device and Simulator Operation. Includes commercial 
activities that operate and maintain training device and simulator 
systems.
    T999  Other Nonmanufacturing Operations.

                         Education and Training

    Includes commercial activities that conduct courses of instruction 
attended by civilian or military personnel of the Department of Defense. 
Terminology of categories and subcategories primarily for military 
personnel (marked by an asterisk) follows the definitions of the 
statutory Military Manpower Training Report submitted annually to the 
Congress. This series includes only the conduct of courses of 
instruction; it does not include education and training support 
functions (that is, Base Operations Functions in the S series and 
Nonmanufacturing Operations in the T series). A course is any separately 
identified instructional entity or unit appearing in a formal school or 
course catalog.
    U100  Recruit Training.* The instruction of recruits.
    U200  Officer Acquisition Training.* Programs concerned with officer 
acquisition training.
    U300  Specialized Skill Training.* Includes Army One-Station Unit 
Training, Naval Apprenticeship Training, and health care training.
    U400  Flight Training.* Includes flight familiarization training.
    U500  Professional Development Education*
    U510  Professional Military Education.* Generally, the conduct of 
instruction at basic, intermediate, and senior Military Service schools 
and colleges and enlisted leadership training does not satisfy the 
requirements of the definition of a DoD CA and is excluded from the 
provision of this Instruction.
    U520  Graduate Education, Fully Funded, Full-Time*
    U530  Other Full-Time Education Programs*
    U540  Off-Duty (Voluntary) and On-Duty Education Programs.* Includes 
the conduct of Basic Skills Education Program (BSEP), English as a 
Second Language (ESL), skill development courses, graduate, 
undergraduate, vocational/technical, and high school completion programs 
for personnel without a diploma.
    U600  Civilian Education and Training. Includes the conduct of 
courses intended primarily for civilian personnel.
    U700  Dependent Education. Includes the conduct of elementary and 
secondary school courses of instruction for the dependents of DoD 
overseas personnel.
    U800  Training Development and Support (not reported elsewhere)
    U999  Other Training. This code will only be used for unusual 
circumstances and will not be used to report organizations or work that 
can be accommodated under a specifically defined code.

                        Automatic Data Processing

    W824  Data Processing Services. Includes commercial activities that 
provide ADP processing services by using Government-owned or -leased ADP 
equipment; or participating in Government-wide ADP sharing program; or 
procuring of time-sharing processing services (machine time) from 
commercial sources. Includes all types of data processing services 
performed by general purpose ADP and peripheral equipment.
    W824A: Operation of ADP Equipment.
    W824B: Production Control and Customer Services.
    W824C: ADP Magnetic Media Library.
    W824D: Data Transcription/Data Entry Services.
    W824E: Transmission and Teleprocessing Equipment Services.
    W824F: Acceptance Testing and Recovery Systems.
    W824G: Punch Card Processing Services.
    W824H: Other ADP Operations and Support.
    W825  Maintenance of ADP Equipment. Includes commercial activities 
that maintain and repair all Government-owned ADP equipment and 
peripheral equipment.
    W826  Systems Design, Development, and Programing Services. Includes 
commercial activities that provide software services associated with 
nontactical ADP operation.
    W826A: Development and Maintenance of Applications Software.
    W826B: Development and Maintenance of Systems Software.
    W827  Software Services for Tactical Computers and Automated Test 
Equipment. Includes commercial activities that provide software services 
associated with tactical computers and TMDE and ATE hardware.

[[Page 913]]

    W999  Other Automatic Data Processing. This code will only be used 
for unusual circumstances and will not be used to report organizations 
or work that can be accommodated under a specifically defined code.

              Products Manufactured and Fabricated In-House

    Commercial activities that manufacture and/or fabricate products in-
house are grouped according to the products predominantly handled as 
follows:
    X931  Ordnance Equipment. Ammunition and related products.
    X932  Products Made from Fabric or Similar Materials. Including the 
assembly and manufacture of clothing, accessories, and canvas products.
    X933  Container Products and Related Items. Including the design, 
engineering, and manufacture of wooden boxes, crates, and other 
containers; includes the fabrication of fiberboard boxes, and assembly 
of paperboard boxes with metal straps. Excludes on-line fabrication of 
boxes and crates reported in functional area T801.
    X934  Food and Bakery Products. Including the operation of central 
meat processing plants, pastry kitchens, and bakery facilities. Excludes 
food services reported in functional areas S713 and H105.
    X935  Liquid, Gaseous, and Chemical Products. Including the 
providing of liquid oxygen and liquid nitrogen.
    X936  Rope, Cordage, and Twine Products; Chains and Metal Cable 
Products
    X937  Logging and Lumber Products. Logging and sawmill operations.
    X938  Communications and Electronic Products.
    X939  Construction Products. The operation of quarries and pits, 
including crushing, mixing, and concrete and asphalt batching plants.
    X940  Rubber and Plastic Products.
    X941  Optical and Related Products.
    X942  Sheet Metal Products.
    X943  Foundry Products.
    X944  Machined Parts.
    X999  Other Products Manufactured and Fabricated In-House. This code 
will only be used for unusual circumstances and will not be used to 
report organizations or work that can be accommodated under a 
specifically defined code.

    Maintenance, Repair, Alteration, and Minor Construction of Real 
                                Property.

    Z991  Buildings and Structures--Family Housing. Includes commercial 
activities that are engaged in exterior and interior painting and 
glazing; roofing, interior plumbing; interior electric; interior heating 
equipment, including heat sources under 750,000 BTU capacity; installed 
food service and related equipment, air conditioning and refrigeration 
under a 5-ton capacity; elevators; and other equipment affixed as part 
of the building and not included in other activities. Includes fencing, 
flagpoles, and other miscellaneous structures associated with family 
housing.
    Z991A: Rehabilitation--Tenant Change.
    Z991B: Roofing.
    Z991C: Glazing.
    Z991D: Tiling.
    Z991E: Exterior Painting.
    Z991F: Interior Painting
    Z991G: Flooring.
    Z991H: Screens, Blinds, etc.
    Z991I: Appliance Repair.
    Z991J: Electrical Repair. Includes elevators, escalators, and moving 
walks.
    Z991K: Plumbing.
    Z991L: Heating Maintenance.
    Z991M: Air Conditioning Maintenance.
    Z991N: Emergency/Service Work.
    Z991T: Other Work.
    Z992  Buildings and Structures (Other Than Family Housing). Includes 
commercial activities that are engaged in exterior and interior painting 
and glazing; roofing, interior plumbing; interior electric; interior 
heating equipment, including heat sources under 750,000 BTU capacity; 
installed foor service and related equipment; air conditioning and 
refrigeration under a 5-ton capacity; elevators; and other equipment 
affixed as part of the building and not reported under other functional 
codes. Includes fencing, flagpoles, guard and watchtowers, grease racks, 
unattached loading ramps, training facilities other than buildings, 
monuments, grandstands and bleachers, elevated garbage racks, and other 
miscellaneous structures.
    Z992A: Rehabilitation--Tenant Change.
    Z992B: Roofing.
    Z992C: Glazing.
    Z992D: Tiling.
    Z992E: Exterior Painting.
    Z992F: Interior Painting.
    Z992G: Flooring.
    Z992H: Screens, Blinds, etc.
    Z992I: Appliance Repair.
    Z992J: Electrical Repair. Includes elevators, escalators, and moving 
walkways.
    Z992K: Plumbing.
    Z992L: Heating Maintenance.
    Z992M: Air Conditioning Maintenance.
    Z992N: Emergency/Service Work.
    Z992T: Other Work.
    Z993  Grounds and Surfaced Areas. Commercial activities that 
maintain, repair, and alter grounds and surfaced areas defined in codes 
Z993A, B, and C, below.
    Z993A: Grounds (Improved). Includes improved grounds, including 
lawns, drill fields, parade grounds, athletic and recreational 
facilities, cemeteries, other ground areas, landscape and windbreak 
plants, and accessory drainage systems.
    Z993B: Grounds (Other than Improved). Small arms ranges, antenna 
fields, drop

[[Page 914]]

zones, and firebreaks. Also grounds such as wildlife conservation areas, 
maneuver areas, artillery ranges, safety and security zones, desert, 
swamps, and similar areas.
    Z993C: Surfaced Areas. Includes airfield pavement, roads, walks, 
parking and open storage areas, traffic signs and markings, storm 
sewers, culverts, ditches, and bridges. Includes sweeping and snow 
removal from streets and airfields.
    Z997  Railroad Facilities. Includes commercial activities that 
maintain, repair, and alter narrow and standard gauge two-rail tracks, 
including spurs, sidings, yard, turnouts, frogs, switches, ties, 
ballast, and roadbeds, with accessories and appurtenances, drainage 
facilities, and trestles.
    Z998  Waterways and Waterfront Facilities. Includes commercial 
activities that maintain, repair, and alter approaches, turning basin, 
berth areas and maintenance dredging, wharves, piers, docks, ferry 
racks, transfer bridges, quays, bulkheads, marine railway dolphins, 
mooring, buoys, seawalls, breakwaters, causeways, jetties, revetments, 
etc. Excludes waterways maintained by the Army Corps of Engineers (COE) 
rivers and harbors programs. Also excludes buildings, grounds, 
railroads, and surfaced areas located on waterfront facilities.
    Z999  Other Maintenance, Repair, Alteration, and Minor Construction 
of Real Property. This code will only be used for unusual circumstances 
and will not be used to report organizations or work that can be 
accommodated under a specifically defined code.
[50 FR 40805, Oct. 7, 1985, as amended at 57 FR 29210, July 1, 1992]

  Appendix B to Part 169a--Commercial Activities Inventory Report and 
                        Five-Year Review Schedule

    A. General Instructions
    1. Forward your inventory report before January 1 to the Director, 
Installations Management, 400 Army Navy Drive, Room 206, Arlington, VA 
22202-2884. Use Report Control Symbol ``DD-A&T(A) 1540'' as your 
authority to collect this data.
    2. Transmit by use of floppy diskette. Data files must be in 
American Standard Code Information Interchange text file format on a 
MicroSoft-Disk Operating System formatted 3.5 inch floppy diskette. 
Provide submissions in the Defense Utility Energy Reporting System 
format as specified below.
    3. Data Format: In-House DoD Commercial Activities

                                                                        
------------------------------------------------------------------------
                                    Tape                                
          Data element           positions      Field      Type data \1\
------------------------------------------------------------------------
Designator.....................      1      A              A            
Installation...................  .........  A1             .............
  --State, territory, or           2-3      A1a            N            
   possession.                                                          
  --Place......................    4-9      A1b            A/N          
+Function......................  10-14      A2             A/N          
In-house civilian workload.....  15-20      A3             N            
Military workload..............  21-26      A4             N            
+Reason for in-house operation.     49      A8             A            
+Most recent year in-house       50-51      A9             N            
 operation approved.                                                    
+Year DoD CA scheduled for next  52-53      A10            N            
 review.                                                                
Installation name..............  76-132     A11            A            
------------------------------------------------------------------------
\1\ A=Alpha; N=Numeric. A and A/N data shall be left justified space    
  filled, N data shall be right justified and zero filled. +Items marked
  with a cross (+) have been registered in the DoD Data Element         
  Dictionary.                                                           

    4. When definite coding instructions are not provided, reference 
must be made to DoD 5000.12-M.\1\ Failure to follow the coding 
instructions contained in this document, or those published in DoD 
5000.12-M makes the DoD Component responsible for noncompliance of 
required concessions in data base communication.
---------------------------------------------------------------------------

    \1\ See Footnote 1 to Sec. 169a.1(a).
---------------------------------------------------------------------------

                          B. Entry Instructions

                                                                        
------------------------------------------------------------------------
              Field                             Instruction             
------------------------------------------------------------------------
A                                 Enter an A to designate that the data 
                                   to follow on this record pertains to 
                                   a particular DoD CA.                 
A1a                               Enter the two-position numeric code   
                                   for State (Data element reference ST-
                                   GA) or U.S. territory or possession, 
                                   as shown in attachment 1 to Appendix 
                                   B of this part.                      
A1b                               Enter the unique alpha-numeric code   
                                   established by the DoD Component for 
                                   military installation, named         
                                   populated place, or related entity   
                                   where the CA workload was performed  
                                   during the fiscal year covered by    
                                   this submission. A separate look-up  
                                   listing or file should be provided   
                                   showing each unique place code and   
                                   its corresponding place name.        
A2                                Enter the function code from Appendix 
                                   A to this part that best describes   
                                   the type of CA workload principally  
                                   performed by the CA covered by this  
                                   submission. Left justify.            
A3                                Enter total (full- and part-time) in- 
                                   house civilian workyear equivalents  
                                   applied to the performance of the    
                                   function during fiscal year. Round   
                                   off to the nearest whole workyear    
                                   equivalent. (If amount is equal to or
                                   greater than .5, round up. If amount 
                                   is less than .5, round down. Amounts 
                                   between zero and 0.9 should be       
                                   entered as one). Right justify. Zero 
                                   fill.                                
A4                                Enter total military workyear         
                                   equivalents applied to the           
                                   performance of the function in the   
                                   fiscal year. Round off to the nearest
                                   whole workyear equivalent. (Amounts  
                                   between zero and one should be       
                                   entered as one). Right justify. Zero 
                                   fill.                                
A8                                Enter the reason for in-house         
                                   operation of the CA, as shown in     
                                   attachment 2 to Appendix B of this   
                                   part.                                
A9                                Enter the last two digits of the most 
                                   recent fiscal year corresponding to  
                                   the reason for in-house operation of 
                                   the CA, as stated in Field A8.       

[[Page 915]]

                                                                        
A10                               Enter the last two digits of the      
                                   fiscal year the function is scheduled
                                   for study or next review. (Data      
                                   element reference YE-NA.)            
A11                               Enter the named populated place, or   
                                   related entity, where the CA workload
                                   was performed.                       
------------------------------------------------------------------------

  Attachment 1 to Appendix B to Part 169a--Codes For Denoting States, 
           Territories, and Possessions of the United States.

          a. NUMERIC STATE CODES (Data element reference ST-GA)

                                  Code

01  Alabama
02  Alaska
04  Arizona
05  Arkansas
06  California
08  Colorado
09  Connecticut
10  Delaware
11  District of Columbia
12  Florida
13  Georgia
15  Hawaii
16  Idaho
17  Illinois
18  Indiana
19  Iowa
20  Kansas
21  Kentucky
22  Louisiana
23  Maine
24  Maryland
25  Massachusetts
26  Michigan
27  Minnesota
28  Mississippi
29  Missouri
30  Montana
31  Nebraska
32  Nevada
33  New Hampshire
34  New Jersey
35  New Mexico
36  New York
37  North Carolina
38  North Dakota
39  Ohio
40  Oklahoma
41  Oregon
42  Pennsylvania
44  Rhode Island
45  South Carolina
46  South Dakota
47  Tennessee
48  Texas
49  Utah
50  Vermont
51  Virginia
53  Washington
54  West Virginia
55  Wisconsin
56  Wyoming

      b. Numeric Codes for Territories and Possessions (FIPS 55-2)

60  American Samoa
66  Guam
69  Northern Marianna Islands
71  Midway Islands
72  Puerto Rico
75  Trust Territory of the Pacific Islands
76  Navassa Islands
78  Virgin Islands
79  Wake Island
81  Baker Island
86  Jarvis Island
89  Kingman Reef
95  Palmyra Atoll

 Attachment 2 to Appendix B to Part 169a--Codes for Denoting Compelling 
    Reasons for In-House Operations of Planned Changes in Method or 
                               Performance

    1. PERFORMANCE (for entry in field A8)

                                                                        
------------------------------------------------------------------------
              Code                              Explanation             
------------------------------------------------------------------------
A                                 Indicates that the DoD CA has been    
                                   retained in-house for national       
                                   defense reasons in accordance with   
                                   paragraph E.2.a(1) of DoD Instruction
                                   4100.33, other than CAs reported     
                                   under code ``C'' of this attachment. 
C                                 Indicates that the DoD CA is retained 
                                   in-house because the CA is essential 
                                   for training or experience in        
                                   required military skills, or the CA  
                                   is needed to provide appropriate work
                                   assignments for a rotation base for  
                                   overseas or sea-to-shore assignments,
                                   or the CA is necessary to provide    
                                   career progression to a needed       
                                   military skill level in accordance   
                                   with paragraph E.2.a(1)(a) of DoD    
                                   Instruction 4100.33.                 
D                                 Indicates procurement of a product or 
                                   service from a commercial source     
                                   would cause an unacceptable delay or 
                                   disruption of an essential DoD       
                                   program.                             
E                                 Indicates that there is no            
                                   satisfactory commercial source       
                                   capable of providing the product or  
                                   service needed.                      
F                                 Indicates that a cost comparison has  
                                   been conducted and that the          
                                   Government is providing the product  
                                   or service at a lower total cost as a
                                   result of a cost comparison.         
G                                 Indicates that the CA is being        
                                   performed by DoD personnel now, but  
                                   decision to continue in-house or     
                                   convert to contract is pending       
                                   results of a scheduled cost          
                                   comparison.                          
H                                 Indicates that the CA is being        
                                   performed by DoD employees now, but  
                                   will be converted to contract because
                                   of cost comparison results.          
J                                 Indicates that the CA is being        
                                   performed by DoD hospital and, in the
                                   best interest of direct patient care,
                                   is being retained in-house.          
K                                 Indicates that the CA is being        
                                   performed by DoD employees now, but a
                                   decision has been made to convert to 
                                   contract for reasons other than cost.
N                                 Indicates that the CA is performed by 
                                   DoD employees now, but a review is in
                                   progress pending a decision. (i.e.,  
                                   base closure, realignment, or        
                                   consolidation).                      
X                                 Indicates that the Installation       
                                   commander is not scheduling this CA  
                                   for cost study under the provisions  
                                   of congressional authority.          

[[Page 916]]

                                                                        
Y                                 Indicates that the CA is retained in- 
                                   house because the cost study exceeded
                                   the time limit prescribed by law.    
Z                                 Indicates that the CA is retained in- 
                                   house for reasons not included above.
                                   (i.e., a law, Executive order,       
                                   treaty, or international agreement). 
------------------------------------------------------------------------

    2. USE OF OTHER CODES. Other codes may be assigned as designated by 
the ODASD (I).
[50 FR 40805, Oct. 7, 1985, as amended at 57 FR 29210, July 1, 1992; 60 
FR 67329, Dec. 29, 1995]

     Appendix C to Part 169a--Simplified Cost Comparison and Direct 
                            Conversion of CAs

    A. This appendix provides guidance on procedures to be followed in 
order to convert a commercial activity employing 45 or fewer DoD 
civilian employees to contract performance without a full cost 
comparison. DoD Components may directly convert functions with 10 or 
fewer civilian employees without conducting a simplified cost 
comparison. Simplified cost comparisons may only be conducted on 
activities with 45 or fewer DoD civilian employees.
    B. Direct conversions with 10 or fewer DoD civilian employees must 
meet the following criteria:
    1. The activity is currently performed by 10 or fewer civilian 
employees.
    2. The direct conversion makes sense from a management or 
performance standpoint.
    3. The direct conversion is cost effective.
    4. The installation commander should attempt to place or retrain 
displaced DoD civilian employees by
    a. Placing or retraining employees in available permanent vacant 
positions, or
    b. Assigning displaced employees to valid temporary or over-hire 
positions in similar activities for gainful employment until permanent 
vacancies are available. The type of employee appointment (e.g., career, 
career-conditional, etc., or change from competitive to excepted service 
or vice versa) must not change, or
    c. Where no vacancies exist or are projected, offer employees 
retraining opportunities under the Job Training Partnership Act or 
similar retraining programs for transitioning into the private sector.
    5. The function to be directly converted does not include any DoD 
civilian positions that were as a result of DoD Component streamlining 
plans and/or were removed with buyout offers that satisfied Section 5 of 
the Federal Workforce Restructuring Act requirements.
    C. The following provides general guidance for completion of a 
simplified cost comparison:
    1. Estimated contractor costs should be based on either the past 
history of similar contracts at other installations or on the 
contracting officer's best estimate of what would constitute a fair and 
reasonable price.
    2. For activities small in total size (45 or fewer civilian and 
military personnel):
    a. Estimated in-house cost generally should not include overhead 
costs, as it is unlikely that they would be a factor for a small 
activity.
    b. Similarly, estimated contractor costs generally should not 
include contract administration, on-time conversion costs, or other 
contract price add-ons associated with full cost comparisons.
    3. For activities large in total size (including those with a mix of 
civilian and military personnel) all cost elements should be considered 
for both in-house and contractor estimated costs.
    4. In either case, large or small, the 10 percent conversion 
differential contained in part IV of the Supplement to OMB Circular No. 
A-76 should be applied.
    5. Part IV of the Supplement to OMB Circular No. A-76 shall be 
utilized to define the specific elements of cost to be estimated.
    6. Clearance for CA simplified cost comparison decisions are 
required for Agencies without their own Legislative Affairs (LA) and 
Public Affairs (PA) offices. Those Agencies shall submit their draft 
decision brief to the Deputy Assistant Secretary of Defense 
(Installations) room 3E813, the Pentagon, Washington, DC 20301 for 
release to Congress.
    7. Provide CA simplified cost comparison approvals containing a 
certification of the MEO analysis, a copy of the approval to convert, a 
copy of the cost comparison, with back-up data, before conversion to the 
following:
    a. Committee on Appropriations of the House of Representatives and 
the Senate (11-45 civilian employees only).
    b. Copies of the following:
    (1) Assistant Secretary of Defense (LA), room 3D918, the Pentagon, 
Washington, DC 20301.
    (2) Assistant Secretary of Defense (PA), room 2E757, the Pentagon, 
Washington, DC 20301.
    (3) Office of Economic Adjustment, room 4C767, the Pentagon, 
Washington, DC 20301.
    (4) Deputy Assistant Secretary of Defense, (Installations), room 
3E813, the Pentagon, Washington, DC 20301. (exception--no copies 
required from Agencies that do not have legislative and public affairs 
offices).
    8. Most Efficient and Cost-Effective Analysis for Contractor 
Performance of an Activity (Report Control Symbol DD-A&T(AR)

[[Page 917]]

1951. The installation commander must certify that the estimated in-
house cost for activities involving 11 to 45 DoD civilian employees are 
based on a completed most efficient and cost effective organization 
analysis. Certification of this MEO analysis, as required by Public Law 
103-139, shall be provided to the Committee on Appropriations of the 
House of Representatives and the Senate before conversion to contract 
performance.
[57 FR 29212, July 1, 1992, as amended at 60 FR 67329, Dec. 29, 1995]

 Appendix D to Part 169a--Commercial Activities Management Information 
                             System (CAMIS)

    Each DoD Component shall create and manage their CAMIS data base. 
The CAMIS data base shall have a comprehensive edit check on all input 
data in the computerized system. All data errors in the CAMIS data base 
shall be corrected as they are found by the established edit check 
program. The data elements described in this appendix represents the DoD 
minimum requirements.
    On approval of a full cost comparison, a simplified cost comparison, 
or a direct conversion CA, the DoD Component shall create the initial 
entry using the data elements in part I for full cost comparisons and 
data elements in part II for all other conversions. Within 30 days of 
the end of each quarter the DoD Component shall submit a floppy 
diskette. Data files must be in American Standard Code Information 
Interchange text file format on a MicroSoft-Disk Operating System 
formatted 3.5 inch floppy diskette. Provide submissions in the Defense 
Utility Energy Reporting System format. The data shall be submitted in 
the Director, Installations Management (D,IM), 400 Army Navy Drive, Room 
206, Arlington, VA 22202-2884 at least 60 days prior to the end of the 
quarter. The D,IM shall use the automated data to update the CAMIS. If 
the DoD Component is unable to provide data in an automated format, the 
D,IM shall provide quarterly printouts of cost comparison records (CCR) 
and conversion and/or comparison records (DCSCCR) that may be annotated 
and returned within 30 days of the end of each quarter to the D,IM. The 
D,IM then shall use the annotated printouts to update the CAMIS.

                         Part I--Cost Comparison

    The record for each cost comparison is divided into six sections. 
Each of these sections contains information provided by the DoD 
Components. The first five sections are arranged in a sequence of 
milestone events occurring during a cost comparison. Each section is 
completed immediately following the completion of the milestone event. 
These events are as follows:
    1. Cost comparison is approved by DoD Component.
    2. Solicitation is issued.
    3. In-house and contractor costs are compared.
    4. Contract is awarded/solicitation is canceled.
    5. Contract starts.
    The events are used as milestones because upon their completion some 
elements of significant information concerning the cost comparison 
become known.
    A sixth section is utilized for CCRs that result in award of a 
contract. This section contains data elements on contract cost and 
information on subsequent contract actions during the second and third 
year of contract operation.
    The data elements that comprise these six sections are defined in 
this enclosure.

       Part II--Direct Conversions and Simplified Cost Comparisons

    The record for each direct conversion and simplified cost comparison 
is divided into six sections. Each of the first five sections is 
completed immediately following the completion of the following events:
    1. DoD Component approves CA action.
    2. The solicitation is issued.
    3. In-house and contractor costs are compared.
    4. Contract is awarded or solicitation is canceled.
    5. Contract starts.
    A sixth section is utilized for tracking historical data after the 
direct conversion or simplified cost comparison is completed. This 
section contains data elements on contracts and cost information during 
the second and third performance period. The data elements that comprise 
the six sections in part II, of this Appendix, are defined in the CAMIS 
Entry and Update Instruction, Part II--Direct Conversions and Simplified 
Cost Comparisons.

                   Camis Entry and Update Instructions

                        Part I--Cost Comparisons

    The bracketed number preceding each definition in sections one 
through five is the DoD data element number. All date fields should be 
in the format MMDDYY (such as, June 30, 1983 = 063083).

                               Section One

       Event: DoD Component Approves Conducting a Cost Comparison

    All entries in this section of CCR shall be submitted by DoD 
Components on the first quarter update after approving the start of a 
cost comparison.

[[Page 918]]

    These entries shall be used to establish the CCR and to identify the 
geographical, organizational, political, and functional attributes of 
the activity (or activities) undergoing cost comparison as well as to 
provide an initial estimate of the manpower associated with the activity 
(or activities). The initial estimate of the manpower in this section of 
the CCR will be in all cases those manpower figures identified in the 
correspondence approving the start of the cost comparison.
    DoD Components shall enter the following data elements to establish 
a CCR:
    [1] Cost Comparison Number. The number assigned by the DoD Component 
to uniquely identify a specific cost comparison. The first character of 
the cost comparison number must be a letter designating DoD Component as 
noted in data element [3], below. The cost comparison number may vary in 
length from five to ten characters, of which the second and subsequent 
may be alpha or numeric and assigned under any system desired by the DoD 
Component.
    [2] Announcement and/or approval date. Date Congress is notified 
when required by 10 U.S.C. 2461, of this part or date DoD Component 
approves studies being performed by 45 or fewer DoD civilian employees.
    [3] DOD Component Code. Use the following codes to identify the 
Military Service or Defense Agency conducting the cost comparison:

A--Department of the Army
B--Defense Mapping Agency
C--Strategic Defense Initiatives Organization
D--Civilian Health and Medical Program of the Uniformed Services 
(CHAMPUS) [3D1]
E--Defense Advanced Research Projects Agency
F--Department of the Air Force
G--National Security Agency/Central Security Service
H--Defense Nuclear Agency
J--Joint Chiefs of Staff (including the Joint Staff, Unified and 
Specified Commands, and Joint Service Schools)
K--Defense Information Systems Agency (DISA)
L--Defense Intelligence Agency
M--United States Marine Corps
N--United States Navy
R--Defense Contract Audit Agency
S--Defense Logistics Agency
T--Defense Security Assistance Agency
V--Defense Investigative Service
W--Uniform Services University of the Health Sciences
X--Inspector General, Department of Defense
Y--On Site Inspection Agency (OSIA)
2--Defense Finance & Accounting Service (DFAS)
3--Defense Commissary Agency (DeCA)
4--Defense Technical Information Center (DTIC)
5--U.S. Army Corps of Engineers (USACE) Civil Works

    [4] Command code. The code established by the DoD Component 
headquarters to identify the command responsible for operating the 
commercial activity undergoing cost comparison.
    [5] Installation code. The code established by the DoD Component 
headquarters to identify the installation where the CA(s) under cost 
comparison is and/or are located physically. Two or more codes (for cost 
comparison packages encompassing more than one installation) should be 
separated by commas.
    [6] State code. A two-position numeric code for the State (Data 
element reference ST-GA.) or U.S. Territory (FIPS 55-2), as shown in 
attachment 1 to appendix B to this part, where element [5] is located. 
Two or more codes shall be separated by commas.
    [7] Congressional District (CD). Number of the congressional 
district(s) where [5] is located. If representatives are elected ``at 
large,'' enter ``01'' in this data element; for a delegate or resident 
commissioner (such as, District of Columbia or Puerto Rico) enter 
``98.'' If the installation is located in two or more CDs, all CDs 
should be entered and separated by commas.
    [8] [Reserved]
    [9] Title of Cost Comparison. The title that describes the 
commercial activity(s) under cost comparision (for instance, 
``Facilities Engineering Package,'' ``Installation Bus Service,'' or 
``Motor Pool''). Use a clear title, not acronyms of function codes in 
this data element.
    [10] DOD Functional Area Code(s). The four of five alpha/numeric 
character designators listed in Appendix A of this part that describe 
the type of CA undergoing cost comparison. There would be one code for a 
single CA or possible several codes for a large cost comparison package. 
A series of codes shall be separated by commas.
    [11] Prior Operation Code. A single alpha character that identifies 
the mode of operation for the activity at the time the cost comparison 
is started. Despite the outcome of the cost comparison, this code does 
not change. The coding as as follows:

I--In-house
C--Contract
N--New requirement
E--Expansion

    [12] Cost Comparison Status Code. A single alpha character that 
identifies the current status of the cost comparison. Enter one of the 
following codes:

P--In progress
C--Complete
X--Canceled. The CCR shall be excluded from future updates.

[[Page 919]]

Z--Consolidated. The cost comparison has been consolidated with one or 
more other cost comparisons into a single cost comparison package. The 
CCR for the cost comparison that has been consolidated shall be excluded 
from future updates. (See data element [15].)
B--Broken out. The cost comparison package has been broken into two or 
more separate cost comparisons. The previous CCR shall be excluded from 
future updates. (See data element [15].)

    [13] Announcement--personnel estimate civilian, and [14] 
announcement--personnel estimate military. The number of civilian and 
military personnel allocated to the CAs undergoing cost comparison when 
the cost comparison is approved by the DoD Component or announced to 
Congress. This number in all cases shall be those personnel figures 
identified in the correspondence announcing the start of a cost 
comparison and will include authorized positions, temporaries, and 
borrowed labor. The number is used to give a preliminary estimate of the 
size of the activity.
    [15] Revised and/or original cost comparison number. When a 
consolidation occurs, create a new CCR containing the attributes of the 
consolidated cost comparison. In the CCR of each cost comparison being 
consolidated, enter the cost comparison number of the new CCR in this 
data element and code ``Z'' in data element [12] of this attachment. In 
the new CCR, this data element should be blank and data element [12] of 
this attachment should denote the current status of the cost comparison. 
Once the consolidation has occurred, only the new CCR requires future 
updates. When a single cost comparison is being broken into multiple 
cost comparisons, create a new CCR for each cost comparison broken out 
from the original cost comparison. Each new CCR shall contain its own 
unique set of attributes; in data element [15] of this attachment enter 
the cost comparison number of the original cost comparison from which 
each was derived, and in data element [12] of this attachment enter the 
current status of each cost comparison. For the original cost 
comparison, data element [15] of this attachment, should be blank and 
data element [12] of this attachment should have a code ``B'' entry. 
Only the derivative record entries require future updates. When a 
consolidation or a breakout occurs, an explanatory remark shall be 
entered in data element [57] of this attachment (such as, ``part of SW 
region cost comparison,'' or, ``separated into three cost 
comparisons'').

                               Section Two

                    Event: The Solicitation is Issued

    The entries in this section of the CCR provide information on the 
personnel authorized to perform the workload in the PWS, the number of 
workyears used to accomplish the workload in the PWS, and the type and 
kind of solicitation.
    The DoD Component shall enter the following data elements at the 
first quarterly update subsequent to the issuance of the solicitation:
    [17] [Reserved]
    [18] Solicitation-Type Code. A one-character alpha designator that 
identifies the type of solicitation used to obtain contract bids or 
offers. Use either the CBD as the source document or information 
received from the contracting officer for this entry. Solicitations 
under section 8(a) of the Small Business Act are negotiated. Enter one 
of the following codes:

S--Sealed Bid
N--Negotiated

    [19] Solicitation Kind Code. A one-character (or two-character, if 
``W'' suffix is used) alpha designator indicating whether the 
competition for the contract has been limited to a specific class of 
bidders or offerors. Use either the CBD as the source document or 
information received from the contracting officer to enter one of the 
following codes:

A--Restrict to small business
B--Small Business Administration 8(a) Set Aside
C--Javits-Wagner-O'Day Act (JWOD)
D--Other mandatory sources
U--Unrestricted
W--(optional suffix) Unrestricted after initial restriction

    [20] Current Authorized Civilians and [21] Current Authorized 
Military. The number of civilian and military authorizations allocated 
on the DoD Component's manpower documents to perform the work described 
in the PWS. This number refines the initial authorization estimate 
(section one, data elements [13] and [14]).
    [22] Baseline Annual Workyears Civilian and [23] Baseline Annual 
Workyears Military. The number of annual workyears it has taken to 
perform the work described by the PWS before the DoD Component conducts 
the MEO study of the in-house organizations; do not include contract 
monitor requirements. Military workyears include assigned, borrowed, 
diverted, and detailed personnel.
    An annual workyear is the use of 2,087 hours (including authorized 
leave and paid time off for training). For example, when full-time 
employees whose work is completely within the PWS are concerned, ``one 
workyear'' normally is comparable to ``one employee'' or two part-time 
employees, each working 1,043 hours in a fiscal year. Also include in 
this total the workyears for full-time employees who do not work on a 
full-time basis on the work described by the PWS. For example, some 
portion of the

[[Page 920]]

workload is performed by persons from another work center who are used 
on an ``as needed'' basis. Their total hours performing this workload is 
4,172 hours. This would be reflected as two workyears. Less than one-
half year of effort should be rounded down, and one-half year or more 
should be rounded up.
    These workyear figures shall be the baseline for determining the 
manpower savings identified by the management study.

                              Section Three

 Event: The In-House and the Contractor Costs of Operation are Compared

    The entries in this section provide information on the date of the 
cost comparison (initial decision), the preliminary results, the number 
of bids or offers received, and the costing method used in the cost 
comparison.
    The DoD Component shall enter the following data elements in the 
first quarterly update subsequent to the date of the comparison of in-
house and contractor costs (date of initial decision):
    [24] Scheduled Initial Decision Date. Date the initial decision is 
scheduled at the start of a cost comparison.
    [24A] Actual Initial Decision Date. Date the initial decision is 
announced. The initial decision is based on the apparent low bid or 
offer and is subject to preaward surveys and resolution of all appeals 
and protests. In a sealed bid procurement, the initial decision is 
announced at bid opening. In a negotiated procurement, the initial 
decision is announced when the cost comparison is made between the in-
house estimate and the proposal of the selected offeror.
    [25] Cost Comparison Preliminary Results Code. A one-character alpha 
designator indicating the results of the cost comparison as announced by 
the contracting officer at the time the bids or offers are compared. The 
entries are limited to two possibilities:

I--In-house
C--Contract

    [26]--[27] [Reserved]

                              Section Four

Event: The Contracting Officer Either Awards the Contract or Commercial 
                    Activity Cancels the Solicitation

    The entries in this section identify the final result, information 
on the contract, the in-house bid, and costing information from the cost 
comparison record.
    The DoD Component shall enter the following data elements in the 
first quarterly update subsequent to the date the contracting officer 
either awards a contract or cancels the solicitation:
    [28] Contract Award/Solicitation Commercial Activity Cancellation 
Date. For conversions to contract, this is the date a contract was 
awarded in a sealed bid solicitation or the date the contractor was 
authorized to proceed on a conditional award contract in a negotiated 
solicitation. For retentions in-house, this is the date the solicitation 
was canceled (when the contracting officer publishes an amendment to the 
solicitation canceling it).
    [29] Cost Comparison Final Result Code. A one-character alpha 
designator identifying the final result of the comparison between in-
house and contractor costs; the contracting officer either awards the 
contract or cancels the solicitation. Enter one of the following codes:

I--In-house
C--Contract

    [30] Decision Rationale Code. A one-character alpha designator that 
identifies the rationale for awarding a contract or canceling the 
solicitation. The work shall be performed in-house or by contractor, 
based on cost, or the work shall be performed in-house because no 
satisfactory commercial source was available (no bids or offers were 
received or the preaward survey resulted in the determination that no 
commercial sources were responsive or responsible). Enter one of the 
following codes:

C--Cost
N--No satisfactory commercial source
O--Other

    [31] [Reserved]
    [31a] Prime Contractor Size. Enter one of the following

S--Small or small/disadvantaged business
L--Large business

    [32] MEO Workyears. The number of annual workyears it takes to 
perform the work described in the PWS after the MEO study has been 
conducted. Do not include the minimum cost differential (line 14 in CCF 
or line 16 in the ENCR CCF) in the computation of any of these data 
elements.
    For data elements [33] through [36], enter all data after all 
adjustments required by appeals board decisions. Do not include the 
minimum cost differential (line 31 old CCF or line 14 new CCF or line 16 
new ENRC form) in the computation of any of these data elements. If a 
valid cost comparison was not conducted (that is, all bidders or 
offerors disqualified, no bids or offers received, etc.) do not complete 
data elements [33] through [36]. Explain lack of valid cost data in data 
element [57], DOD Component Comments.
    [33] First Performance Period. Expressed in months, the length of 
time covered by the contract. Do not include any option periods.

[[Page 921]]

    [34] Cost Comparison Period. Expressed in months, the total period 
of operation covered by the cost comparison; this is the period used as 
the basis for data elements [35] and [36], below.
    [35] Total in-house Cost ($000). Enter the total cost of in-house 
performance in thousands of dollars, rounded to the nearest thousand. 
This is the total of line 6 of the new CCF or line 8 of the ENCR CCF. An 
entry is required although the activity remains in-house due to absence 
of a satisfactory commercial source.
    [36] Total Contract Cost ($000). Enter the total cost of contract 
performance in thousands of dollars, rounded to the nearest thousand. 
This is the total of line 13 of the CCF or line 15 of the ENCR CCF.
    [37] Scheduled Contract or MEO Start Date. Date the contract and/or 
MEO was scheduled to start at the beginning of a cost comparison.

                              Section Five

                     Event: The Contract/MEO Starts

    The entries in this section identify the contract or MEO start date 
and the personnel actions taken as a result of the cost comparison.
    The DoD Component shall enter the following data elements in the 
first quarterly update subsequent to the start of the contract:
    [38] Contract/MEO Start Date. The actual date the contractor began 
operation of the contract or the Government implements the MEO.
    [39] Permanent Employees Reassigned to Equivalent Positions. The 
number of permanent employees who were reassigned to positions of 
equivalent grade as of the contract start date.
    [40] Permanent Employee Changed To Lower Positions. The number of 
permanent employees who were reassigned to lower grade positions as of 
the contract start date.
    [41] Employees Taking Early Retirement. The number of employees who 
took early retirement as of the contract start date.
    [42] Employees Taking Normal Retirement. The number of employees who 
took normal retirement as of the contract start date.
    [43] Permanent Employees Separated. The number of permanent 
employees who were separated from Federal employment as of the contract 
start date.
    [44] Temporary Employees Separated. The number of temporary 
employees who were separated from Federal employment as of the contract 
start date.
    [45] Employees Entitled To Severance Pay. The estimated number of 
employees entitled to severance pay on their separation from Federal 
employment as of the contract start date.
    [46] Total Amount of Severance Entitlements ($000). The total 
estimated amount of severance to be paid to all employees, in thousands 
of dollars, rounded to the nearest thousand, as of the contract start 
date.
    [47] Number Of Employees Hired by The Contractor. The number of 
estimated DoD civilian employees (full-time or otherwise) that will be 
hired by the contractors, or their subcontractors, at the contract start 
date.

                          Administrative Appeal

    [48] Filed. Were administrative appeals filed?
    N--No
    Y--Yes
    [49] Source. Who filed the appeal?
    B--Both
    C--Contractor
    I--In-house
    [50] Result. Were the appeals finally upheld? (If both appealed, 
explain result in data element [57], of this section).
    N--No
    P--Still in progress
    Y--Yes

                               GAO Protest

    [51] Filed. Was a protest filed with GAO?
    N--No
    Y--Yes
    [52] Source. Who filed the protest?
    B--Both
    C--Contractor
    I--In-house
    [53] Result. Was the protest finally upheld? (Explain result in data 
element [57], below).
    N--No
    P--Still in progress
    Y--Yes

                               Arbitration

    [54] Requested. Was there a request for arbitration?
    N--No
    Y--Yes
    [55] Result. Was the case found arbitrable? (Explain result in data 
element [57], below).
    N--No
    P--Still in progress
    Y--Yes

                           General Information

    +[56] Total Staff-Hours Expended. Enter the estimated number of 
staff-hours expended by the installation for the cost comparison. 
Include direct and indirect hours expended from the time of PWS until a 
final decision is made.
    +[56a] Estimated Cost Of Conducting The Cost Comparison. Enter the 
estimated cost of the total staff-hours identified in data element [56] 
of this section non-labor (travel, reproduction costs, etc.) associated 
with the cost comparision.

[[Page 922]]

    +Data elements [56] and [56A] will only be completed by DoD 
Components that are participating in the pilot test of these data 
elements.
    [57] DoD Component Comments. Enter comments, as required, to explain 
situations that affect the conduct of the cost comparision. Where 
appropriate, precede each comment with the CAMIS data element being 
referenced.
    [58] Effective Date. ``As of'' date of the most current update for 
the cost comparison. This data element will be completed by the DMDC.
    [59] (Leave blank, for DoD computer program use).

                               Section Six

         Event: Quarter Following Contract and/or Option Renewal

    The entries in this section identify original costs, savings, 
information on subsequent performance periods and miscellaneous contract 
data. The DoD Component shall enter the following data elements in the 
first quarterly update annually.
    [60] Original Cost of Function(s) ($000). The estimated total cost 
of functions before to development of an MEO in thousands of dollars, 
rounded to the nearest thousand for the base year and option years. 
(Begin entry when study began for data element [2] after 1 October 
1989).
    [60A] Estimated Dollar Savings ($000). The DoD Component's estimated 
savings from the cost comparison for the base year plus option years, in 
thousands of dollars, rounded to the nearest thousand, for either in-
house or contract performance. Documentation will be available at the 
DoD Component level. (Begin entry after 1 October 1989).
    [61] Contract Or In-House Bid First Performance Period ($000). For 
studies resulting in continued in-house performance, enter the total in-
house cost (Line 6 from the CCF) for the first performance period. For 
studies resulting in conversion to contract performance, enter the 
contract price (Line 7 from the CCF) for the first performance period. 
Figures shall be shown in thousands of dollars, rounded to the nearest 
thousand.
    [61A] Actual Contract or In-House Costs First Performance Period 
($000). Enter the actual first performance period contract cost 
including all change orders (Plus changes in the scope of work) or 
actual in-house performance cost including changes in the scope of work, 
in thousands of dollars, rounded to the nearest thousand. No entry is 
required for actual in-house performance during the second and third 
performance periods.
    [61B] Adjusted Contract Costs First Performance Period ($000). Enter 
an adjusted first performance period contract cost that includes actual 
DoL wage increases and costs for omissions and/or errors in the original 
PWS, but exclude new requirement costs and their associated wage 
increases, in thousands of dollars, rounded to the nearest thousand. 
(Begin entry after 1 October 1989).
    [61C] Adjusted In-House Costs First Performance Period ($000). Enter 
the total first performance period in-house cost of the MEO, including 
civil service pay increases, but excluding increases associated with new 
mission requirements not included in the original scope of work of the 
function. Show costs in thousands of dollars, rounded to the nearest 
thousand. Entry is required even if the function went to contract. 
(Begin entry after 1 October 1989).
    [62] Contract Or In-House Bid Second Performance Period ($000). For 
studies resulting in continued in-house performance, enter the total in-
house cost (Line 6 from the CCF) for the second performance period. For 
studies resulting in conversion to contract performance, enter the 
contract price (Line 7 from the CCF) for the second performance period. 
Figures shall be shown in thousands of dollars, rounded to the nearest 
thousand.
    [62A] Actual Contract Costs Second Performance Period ($000). Enter 
the actual second performance period contract cost including all change 
orders (Plus changes in the scope of work), in thousands of dollars, 
rounded to the nearest thousand. No entry is required when the function 
remained in-house.
    [62B] Adjusted Contract Costs Second Performance Period ($000). 
Enter an adjusted second performance period contract cost that includes 
actual DoL wage increases and costs for omissions and/or errors in the 
original PWS, but exclude new requirement costs and their associated 
wage increases, in thousands of dollars, rounded to the nearest 
thousand. (Begin entry after 1 October 1989).
    [62] Adjusted In-House Costs Second Performance Period ($000). Enter 
the total second performance period in-house cost of the MEO, including 
civil service pay increases, but excluding increases associated with new 
mission requirements not included in the original scope of work of the 
function. Show costs in thousands of dollars, rounded to the nearest 
thousand. Entry is required even if the function went to contract. 
(Begin entry after 1 October 1989).
    [63] Contract Or In-house Bid Third Performance Period ($000). For 
studies resulting in continued in-house performance, enter the total in-
house cost (Line 6 from the CCF) for the third performance period. For 
studies resulting in conversion to contract performance, enter the 
contract price (Line 7 from the CCF) for the third performance period. 
Figures shall be shown in thousands of dollars, rounded to the nearest 
thousand.
    [63A] Actual Contract Costs Third Performance Period ($000). Enter 
the actual third performance period contract cost including all change 
orders (Plus changes in

[[Page 923]]

the scope of work), in thousands of dollars, rounded to the nearest 
thousand. No entry is required when the function remained in-house.
    [63B] Adjusted Contract Costs Third Performance Period ($000). Enter 
an adjusted third performance period contract cost that includes actual 
DoL wage increases and costs for omissions and/or errors in the original 
PWS, but exclude new requirement costs and their associated wage 
increases, in thousands of dollars, rounded to the nearest thousand 
(Begin entry after 1 October 1989).
    [63C] Adjusted In-House Costs Third Performance Period ($000). Enter 
the total third performance period in-house cost of the MEO, including 
civil service pay increases, but excluding increases associated with new 
mission requirements not included in the original scope of work of the 
function. Show costs in thousands of dollars, rounded to the nearest 
thousand. Entry is required even if the function went to contract (Begin 
entry after 1 October 1989).
    [64] Contractor Change. Enter one of the following alpha designators 
to indicate whether the contract for the second or third performance 
period has changed from the original contractor.
    N--No, the contractor has not changed.
    Y--Yes, the contractor has changed.
    Data elements [65] through [66] of this section are not required if 
the answer to [64] of this section is no (N).
    [65] New Contractor Size (If data element [66] of this section 
contains the alpha designator ``I'' or ``R,'' no entry is required).
    L--New contractor is large business.
    S--New contractor is small and/or small disadvantaged business.
    [66] Reason For Change. DoD Components shall enter one of the 
following designators listed in this section, followed by the last two 
digits of the fiscal year which the change occurred.
    C--Contract workload consolidated with other existing contract 
workload.
    D--New contractor takes over because original contractor defaults.
    I--Returned in-house because original contractor defaults within 12 
months of start date and in-house bid is the next lowest.
    N--New contractor replaced original contractor because Government 
opted not to renew contract in option years.
    R--Returned in-house temporarily pending resolicitation due to 
contract default, etc.
    U--Contract workload consolidated into a larger (umbrella) cost 
comparison.
    X--Other-function either returned in-house or eliminated because of 
base closure, realignment, budget reduction or other change in 
requirements.
    [67] Contract Administration Staffing. The actual number of contract 
administration personnel hired to administer the contract.

                   Camis Entry and Update Instruction

       Part II--Direct Conversions and Simplified Cost Comparisons

    The bracketed number preceding each definition in sections One 
through six of this section, is the DoD data element number. All date 
fields should be in the format YYMMDD (Data element reference DA-FA).

                               Section One

               Event: DoD Component Approves the CA Action

    All entries in this section of the DCSCCR record shall be submitted 
by DoD Components on the first quarter update after approving the start 
of a cost comparison. These entries shall be used to establish the 
DCSCCR and to identify the geographical, organizational, political, and 
functional attributes of the activity (or activities) undergoing 
conversion and/or comparison as well as to provide an initial estimate 
of the manpower associated with the activity (or activities). The 
initial estimate of the personnel in this section of the DCSCCR will be, 
in all cases, those personnel figures identified in the correspondence 
approving the start of the conversion and/or comparison. DoD Components 
shall enter the following data elements to establish a DCSCCR:
    [1] Direct Conversion/Simplified Cost Comparison Number. The number 
assigned by the DoD Component to uniquely identify a specific conversion 
and/or comparison. The first character of the conversion and/or 
comparison number must be a letter designating the DoD Component as 
noted in data element [3] of this section. The conversion and/or 
comparison number may vary in length from five to ten characters, of 
which the second and subsequent may be alpha or numeric and assigned 
under any system desired by the DoD Component.
    [2] Approval Date. The date has simplified cost comparison or direct 
conversion was approved.
    [3] DoD Component Code. Use the following codes to identify the 
Military Service or Defense Agency and/or Field Activity conducting the 
cost comparison:
    A--Department of the Army
    B--Defense Mapping Agency (DMA)
    D--Civilian Health and Medical Program of the Uniformed Services 
(CHAMPUS) [3D1]
    D--Washington Headquarters Service (WHS) [3D2]
    F--Department of the Air Force
    G--National Security Agency/Central Security Service (NSA/CSS)
    H--Defense Nuclear Agency (DNA)

[[Page 924]]

    J--Joint Chiefs of Staff (JCS) (including the Joint Staff, Unified 
and Specified Commands, and Joint Service Schools)
    K--Defense Information Systems Agency (DISA)
    L--Defense Intelligence Agency (DIA)
    M--United States Marine Corps (USMC)
    N--United States Navy (USN)
    R--Defense Contract Audit Agency (DCAA)
    S--Defense Logistics Agency (DLA)
    T--Defense Security Assistance Agency (DSAA)
    V--Defense Investigative Service (DIS)
    W--Uniformed Services University of the Health Sciences (USUHS)
    Y--On Site Inspection Agency (OSIA)
    2--Defense Finance & Accounting Service (DFAS)
    3--Defense Commissary Agency (DeCA)
    4--Defense Technical Information Center (DTIC)
    5--U.S. Army Corps of Engineers (USACE) Civil Works
    [4] Command code. The code established by the DoD Component 
headquarters to identify the command responsible for operating the 
commercial activity undergoing cost comparison.
    [5] Installation code. The code established by the DoD Component 
headquarters to identify the installation where the CA(s) under cost 
comparison is and/or are located physically. Two or more codes (for cost 
comparison packages encompassing more than one installation) should be 
separated by commas.
    [6] State Code. A two-position numeric code for the State (Data 
element reference ST-GA.) or U.S. Territory (FIPS 55-2), as shown in 
attachment 1 to appendix B of this part, where element [5] is located. 
Two or more codes shall be separated by commas.
    [7] Congressional District (CD). Number of the CDs where [5] of this 
section, is located. If representatives are elected ``at large,'' enter 
``01'' in this data element; for a delegate or resident commissioner 
(i.e., District of Columbia or Puerto Rico) enter ``98.'' If the 
installation is located in two or more CDs, all CDs should be entered 
and separated by commas.
    [8] (Leave blank)
    [9] Title of Conversion and/or Comparison. The title that describes 
the CA(s) under conversion/comparison (for instance, ``Facilities 
Engineering Package'', ``Installation Bus Service,'' or ``Motor Pool''). 
Use a clear title, not acronyms or function codes in this data element.
    [10] DoD Functional Area Code(s). The four- or five-alpha and/or 
numeric character designators listed in appendix A of this part that 
describes the type of CA undergoing conversion and/or comparison. This 
would be one code for a single CA or possibly several codes for a large 
cost comparison package. A series of codes shall be separated by commas.
    [11] Prior Operation Code. A single alpha character that identifies 
the mode of operation for the activity at the time the conversion and/or 
comparison is started. Despite the outcome of the conversion and/or 
comparison, this code does not change. The coding is as follows:

    C--Contract
    E--Expansion
    I--In-house
    N--New requirement
    [12] Conversion and/or Comparison Status Code. A single alpha 
character that identifies the current status of the conversion and/or 
comparison. Enter one of the following codes:
    B--Broken out. The cost comparison package has been broken into two 
or more separate cost comparisons. The previous DCSCCR shall be excluded 
from future updates. (See data element [15] of this section.)
    C--Complete
    P--In progress
    X--Canceled. The DCSCCR shall be excluded from future updates.
    Z--Consolidated. The cost comparison has been consolidated with one 
or more other cost comparisons into a single cost comparison package. 
The DCSCCR for the cost comparison that has been consolidated shall be 
excluded from future updates. (See data element [15] of this section.)
    [13] Announcement--personnel estimate civilian, and [14] 
announcement--personnel estimate military. The number of civilian and 
military personnel allocated to the CAs undergoing conversion and/or 
comparison at the time the start of the conversion and/or comparison is 
approved. This number is all cases shall be those personnel figures 
identified when the conversion and/or comparison was approved and will 
include authorized positions, temporaries, and borrowed labor. The 
number is used to give a preliminary estimate of the size of the 
activity.
    [15] Revised and/or original cost comparison number. When a 
consolidation occurs, create a new DCSCCR containing the attributes of 
the consolidated conversion and/or comparison. In the DCSCCR of each 
conversion and/or comparison being consolidated, enter the conversion 
and/or comparison number of the new DCSCCR in this data element and code 
``Z'' in data element [12] of this section. In the new DCSCCR, this data 
element should be blank and data element [12] of this section should 
denote the current status of the conversion and/or comparison. Once the 
consolidation has occurred, only the new DCSCCR requires future updates.
    When a single conversion and/or comparison is being broken into 
multiple conversion and/or comparisons, create a new DCSCCR for each 
conversion and/or comparison broken out from the original conversion 
and/or

[[Page 925]]

comparison. Each new DCSCCR shall contain its own unique set of 
attributes; in data element [15] of this section enter the conversion 
and/or comparison number of the original conversion and/or comparison 
from which each was derived, and in data element [12] of this section 
enter the current status of each conversion and/or comparison. For the 
original conversion and/or comparison, data element [15] of this section 
should be blank and data element [12] of this section should have a code 
``B'' entry. Only the derivative record entries require future updates.
    When a consolidation or a breakout occurs, an explanatory remark 
shall be entered in data element [56] of this section (such as, ``part 
of SW region cost comparison,'' or, ``separated into three cost 
comparisons'').
    [16] (Leave blank)

                               Section Two

                    Event: The Solicitation is Issued

    The entries in this section of the DCSCCR provide information on the 
personnel authorized to perform the workload in the PWS, the number of 
workyears used to accomplish the workload in the PWS, and the type and 
kind of solicitation.
    The DoD Component shall enter the following data elements at the 
first quarterly update subsequent to the issuance of the solicitation:
    [17] (Leave blank)
    [18] Solicitation-Type code. A one-character alpha designator that 
identifies the type of solicitation used to obtain contract bids or 
offers. Use either the CBD as the source document or information 
received from the contracting officer for this entry. Solicitations 
under section 8(a) of ``The Small Business Act'' are negotiated. Enter 
one of the following codes:

    N--Negotiated
    S--Sealed Bid
    [19] Solicitation-Kind code. A one-character (or two-character, if 
``W'' suffix is used) alpha designator indicating whether the 
competition for the contract has been limited to a specific class of 
bidders or offerors. Use either the CBD as the source document or 
information received from the contracting officer to enter one of the 
following codes:

    A--Restrict to small business
    B--Small Business Administration 8(a) Set Aside
    C--``Javits-Wagner-O'Day Act'' (JWOD)
    D--Other mandatory sources
    U--Unrestricted
    W--(Optional suffix) Unrestricted after initial restriction
    [20] Current Authorized Civilians, and [21] Current Authorized 
Military. The number of civilian and military authorizations allocated 
on the DoD Component's manpower documents to perform the work described 
in the PWS. This number refines the initial authorization estimate 
(section one, data elements [13] and [14] of this section).
    [22] Baseline Annual Workyears Civilian, and [23] Baseline Annual 
Workyears Military. The number of annual workyears it has taken to 
perform the work described by the PWS before the DoD Component conducts 
the MEO analysis of the in-house organization. Do not include contract 
monitor requirements. Military workyears include assigned, borrowed, 
diverted, and detailed personnel. Less than one-half a year of effort 
should be rounded down, and one-half a year or more should be rounded 
up. These workyear figures shall be the baseline for determining the 
personnel savings identified by the most efficient organization 
analysis.

                              Section Three

 Event: The In-House And The Contractor Costs Of Operations Are Compared

    The entries in this section provide information on the date of the 
conversion and/or comparison (initial decision), the preliminary 
results, the number of bids or offers received, and the costing method 
used in the conversion and/or comparison.
    The DoD Component shall enter the following data elements in the 
first quarterly update subsequent to the date of the comparison of in-
house and contractor costs (date of initial decision):
    [24] Scheduled Initial Decision Date. Date the initial decision is 
scheduled at the start of a conversion and/or comparison
    [24A] Actual Initial Decision Date. Date the initial decision is 
announced. The initial decision is based on the apparent low bid or 
offer and is subject to preaward surveys and resolution of all appeals 
and protests. In a sealed bid procurement, the initial decision is 
announced at bid opening. In a negotiated procurement, the initial 
decision is announced when the cost comparison is made between the in-
house estimate and the proposal of the selected offeror. In a 
conversion, the initial decision is announced when the in-house cost 
estimate is evaluated against proposed contractor proposals.
    [25] Cost Comparison Preliminary Results Code. A one-character alpha 
designator indicating the results of the cost comparison as announced by 
the contracting officer at the time of the comparison (No entry required 
for a direct conversion). The entries are limited to two possibilities:

    C--Contract
    I--In-house
    [26] (Leave blank)
    [27] (Leave blank)

[[Page 926]]

                              Section Four

Event: The Contracting Officer Either Awards The Contract or Cancels The 
                              Solicitation

    The entries in this section identify the final result, information 
on the contract, the in-house bid, and costing information from the 
direct conversion and/or simplified cost comparison fact sheet.
    The DoD Component shall enter the following data elements in the 
first quarterly update subsequent to the date the contracting officer 
either awards a contract or cancels the solicitation:
    [28] Contract Award or Solicitation Cancellation Date. For 
conversions to contract, this is the date a contract was awarded in a 
sealed bid solicitation or the date the contractor was authorized to 
proceed on a conditional award contract in a negotiated solicitation. 
For retentions in-house, this is the date the solicitation was canceled 
(when the contracting officer publishes an amendment to cancel the 
solicitation).
    [29] Cost Comparison Final Result Code. A one-character alpha 
designator identifying the final result of the comparison between in-
house and contractor costs; the contracting officer either awards the 
contract or cancels the solicitation. Enter one of the following codes:

    C--Contract
    I--In-house
    [30] Decision Rationale Code. A one-character alpha designator that 
identifies the rationale for awarding a contract or canceling the 
solicitation. The work shall be performed in-house or by contractor 
based on cost, for other than cost, or the work shall be performed in-
house because no satisfactory commercial source was available (no bids 
or offers were received or the pre-award survey resulted in the 
determination that no commercial sources were responsive or 
responsible). Enter one of the following codes:

    C--Cost
    N--No satisfactory commercial source
    O--Other
    [31] (Leave blank)
    [31A] Prime Contractor Size. Enter one of the following:

    L--Large business
    S--Small or small and/or disadvantaged business
    [32] MEO Workyears. The number of annual workyears it takes to 
perform the work described in the PWS after the MEO analysis has been 
conducted. This entry will be equal to the number of annual workyears in 
the in-house bid (No entry required for a direct conversion).
    For data elements [33] through [36] of this section enter all data 
after all adjustments required by appeal board decisions. Do not include 
minimum cost differential in the computation of any of these data 
elements. If a valid conversion and/or comparison was not conducted 
(i.e., all bidders or offerors disqualified, no bids or offers received, 
etc.) do not complete data elements [33], [34] and [36] of this section. 
Explain lack of valid cost data in data element [56], ``DoD Component 
Comments'' of this section.
    [33] First Performance Period. Expressed in months, the length of 
time covered by the contract. Do not include any option periods.
    [34] Conversion and/or Comparison Period. Expressed in months, the 
total period of operation covered by the conversion or cost comparison; 
this is the period used as the basis for data elements [35] and [36] of 
this section.
    [35] Total In-House Cost ($000). Enter the total estimated cost of 
in-house performance for the base year plus option years, in thousands 
of dollars, rounded to the nearest thousand. An entry is required 
although the activity remains in-house due to absence of a satisfactory 
commercial source (No entry required for a direct conversion).
    [36] Total Contract Cost ($000). Enter the total estimated cost of 
contract performance for the base year plus option years, in thousands 
of dollars, rounded to the nearest thousand.
    [37] Scheduled Contract or MEO Start Date. Date the contract and/or 
MEO was scheduled to start at the beginning of a conversion and/or 
comparison.

                              Section Five

                     Event: The Contract MEO Starts.

    The entries in this section identify the contract or MEO start date 
and the personnel actions taken as a result of the conversion and/or 
comparison.
    The DoD Component shall enter the following data elements in the 
first quarterly update subsequent to the start of the contract:
    [38] Contract and/or MEO Start Date. The actual date the contractor 
began operation of the contract or the Government implements the MEO.
    [39] Permanent Employees Reassigned to Equivalent Positions. The 
number of permanent employees who were reassigned to positions of 
equivalent grade as of the contract start date.
    [40] Permanent Employees Changed to Lower Positions. The number of 
permanent employees who were reassigned to lower grade positions as of 
the contract start date.
    [41] Employees Taking Early Retirement. The number of employees who 
took early retirement as of the contract start date.
    [42] Employees Taking Normal Retirement. The number of employees who 
took normal retirement as of the contract start date.
    [43] Permanent Employees Separated. The number of permanent 
employees who were

[[Page 927]]

separated from Federal employment as of the contract start date.
    [44] Temporary Employees Separated. The number of temporary 
employees who were separated from Federal employment as of the contract 
start date.
    [45] Employees Entitled to Severance Pay. The estimated number of 
employees entitled to severance pay on their separation from Federal 
employment as of the contract start date.
    [46] Total Amount of Severance Entitlements ($000). The total 
estimated amount of severance to be paid to all employees, in thousands 
of dollars, rounded to the nearest thousand, as of the contract start 
date.
    [47] Number of Employees Hired by the Contractor. The number of 
estimated DoD civilian employees (full-time or otherwise) that will be 
hired by the contractors, or their subcontractors, at the contract start 
date.

                          Administrative Appeal

    [48] Filed. Were administrative appeals filed?

    N--No
    Y--Yes
    [49] Source. Who filed the appeal?

    B--Both
    C--Contractor
    I--In-House
    [50] Result. Were the appeals finally upheld? (if both appealed, 
explain result in data element [56] of this section).

    N--No
    P--Still in Progress
    Y--Yes

                               GAO Protest

    [51] Filed. Was a protest filed with GAO?

    N--No
    Y--Yes
    [52] Source. Who filed the protest?

    B--Both
    C--Contractor
    I--In-House
    [53] Result. Was the protest finally upheld? (explain result in data 
element [56], of this section).

    N--No
    P--Still in Progress
    Y--Yes

                               Arbitration

    [54] Requested. Was there a request for arbitration?

    N--No
    Y--Yes
    [55] Result. Was the case found arbitrable? (explain result in data 
element [56], of this section).

    N--No
    P--Still in Progress
    Y--Yes

                           General Information

    [56] DoD Component Comments. Enter comments, as required, to explain 
situations that affect the conduct of the conversion and/or comparison. 
Where appropriate, precede each comment with the CAMIS data element 
being referenced.
    [57] Effective Date. ``As of'' date of the most current update for 
the conversion and/or comparison. This data element will be completed by 
the DMDC.
    [58] (Leave blank, for DoD computer program use).

                               Section Six

         Event: Quarter Following Contract and/or Option Renewal

    The entries in this section identify information on subsequent 
performance periods and miscellaneous contract data. The DoD Component 
shall enter the following data elements in the first quarterly update 
annually:
    [59] Actual Contract Cost First Performance Period ($000). Enter the 
actual contractor cost for the first performance period, in thousands of 
dollars, rounded to the nearest thousand.
    [60] Actual Contract Cost Second Performance Period ($000). Enter 
the actual contractor cost for the second performance period, in 
thousands of dollars, rounded to the nearest thousand.
    [61] Actual Contract Cost Third Performance Period ($000). Enter the 
actual contractor cost for the third performance period, in thousands of 
dollars, rounded to the nearest thousand.
    [62] Contractor Change. Enter one of the following alpha designators 
to indicate whether the contractor for the second or third performance 
period has changed from the original contractor.

    N--No, the contractor has not changed
    Y--Yes, the contractor has changed
    Data elements [63] through [64] of this section are not required if 
the answer to [62] of this section is no (N).
    [63] New Contractor Size. (If data element [64] of this section 
contains the alpha designator ``I'' or ``R,'' no entry is required)

    L--New contractor is large business
    S--New contractor is small and/or small disadvantaged business.
    [64] Reason For Change. DoD Components shall enter one of the 
following designators listed in the following, followed by the last two 
digits of the FY in which the change occurred.

    C--Contract workload consolidated with other existing contract 
workload.
    D--New contractor takes over because original contractor defaults.

[[Page 928]]

    I--Returned in-house because of original contractor defaults; etc., 
within 6 months of start date and in-house bid is the next lowest.
    N--New contractor replaced original contractor because Government 
opted not to renew contract in option years.
    R--Returned in-house temporarily pending resolicitation due to 
contract default, etc.
    U--Contract workload consolidated with other existing contract 
workload.
    X--Other-Function either returned in-house or eliminated because of 
base closure, realignment, budget reduction or other change in 
requirements.
    [65] Contract Administration Staffing. The actual number of contract 
administration personnel hired to administer the contract.
[50 FR 40805, Oct. 7, 1985, as amended at 57 FR 29212, July 1, 1992; 60 
FR 67329, Dec. 29, 1995]



PART 172--DISPOSITION OF PROCEEDS FROM DOD SALES OF SURPLUS PERSONAL PROPERTY--Table of Contents




Sec.
172.1  Purpose.
172.2  Applicability and scope.
172.3  Policy.
172.4  Responsibilities.
172.5  Procedures.
172.6  Information requirements.

Appendix A to Part 172--Efforts and Costs Associated With the Disposal 
          of Recyclable Material
Appendix B to Part 172--Disposition of Amounts Collected From Successful 
          Bidders

    Authority: 40 U.S.C. 484 and 485, 10 U.S.C. 2577.

    Source: 54 FR 35483, Aug. 28, 1989, unless otherwise noted.



Sec. 172.1  Purpose.

    This document provides revised and expanded instructions on the 
collection and disposition of cash and cash equivalents received by the 
DoD Components for the DoD sale of surplus personal property.



Sec. 172.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense (OSD), the 
Military Departments, the Joint Chiefs of Staff (JCS) and the Joint 
Staff, the Unified and Specified Commands, the Inspector General of the 
Department of Defense (IG, DoD), the Defense Agencies, and DoD Field 
Activities (hereafter referred to collectively as ``DoD Components'').
    (b) Applies to the proceeds resulting from sales made under 
authority of Public Law 152 and to the following:
    (1) Personal property governed by DoD 4160.21-M.
    (2) Surplus Government-owned personal property in the possession of 
contractors, as described in FAR subpart 45.6.
    (3) Recyclable material governed by 10 U.S.C. 2577. Such materials 
would otherwise be sold as scrap or discarded as waste, but are capable 
of being reused after undergoing some type of physical or chemical 
processing. The recycling of hazardous materials or hazardous waste 
shall be accomplished with due recognition of the types of materials 
being processed and the applicable regulation governing the handling and 
disposal of such materials. Qualified recyclable materials do not 
include the following:
    (i) Precious metal-bearing scrap and those items that may be used 
again for their original purposes or functions without any special 
processing; e.g., used vehicles, vehicle or machine parts, bottles (not 
scrap glass), electrical components, and unopened containers of oil or 
solvent.
    (ii) Ships, planes, or weapons that must undergo demilitarization or 
mutilation before sale.
    (iii) Scrap generated from DoD industrial fund (IF) operations that 
has been routinely sold with the proceeds being used to offset customer 
costs.
    (iv) Bones, fats, and meat trimmings generated by a commissary store 
or exchange.



Sec. 172.3  Policy.

    (a) Cash or cash equivalents in the prescribed amounts shall 
accompany bid deposits for a bid to be considered responsive. Similarly, 
cash or cash equivalents for the total sales price shall be received by 
the DoD Components or, in authorized cases, by contractors before the 
transfer of physical possession to the successful bidder.
    (b) Amounts collected by the DoD Components in connection with the 
sale of excess and surplus property shall be deposited promptly to the 
U.S.

[[Page 929]]

Treasury accounts prescribed in accordance with this instruction. The 
use of suspense accounts shall be minimal. If the account, ultimately to 
be credited with the proceeds of a sale, can be determined reasonably at 
the time funds are collected, the deposit shall be made immediately to 
that account.
    (c) The Secretary of each Military Department shall establish 
qualified recycling programs. The effort associated with the collecting, 
processing and selling of recyclable material is in appendix A to this 
part.
    (1) Proceeds from the sale of recyclable material shall be used to 
reimburse installation-level costs incurred in operation of the 
recyclable program.
    (2) After reimbursement of the cost incurred by the installation to 
operate the recycling program, installation commanders may use up to 50 
percent of remaining sale proceeds for pollution abatement, energy 
conservation, and occupational safety and health activities. A project 
may not be carried out for an amount greater than 50 percent of the 
amount established by law as the maximum amount for a minor construction 
project.
    (3) Any sale proceeds remaining after paragraphs (c)(1) and (2) of 
this section may be transferred to installation morale or welfare 
activities.



Sec. 172.4  Responsibilities.

    The Heads of DoD Components that sell surplus personal property 
shall implement the procedures prescribed in this part for the 
disposition of cash and cash equivalents received in connection with 
such sales.



Sec. 172.5  Procedures.

    (a) Required bid deposits. When a sale conducted by a DoD Component 
provides for bid deposit with subsequent removal, the following 
procedures shall apply:
    (1) Term bid. This type of bid deposit is applicable when the sale 
involves the purchase of scrap or disposable material that will be 
generated over time with periodic removal by the successful bidder. The 
amount of the bid deposit required to accompany such bids is the average 
estimated quantity of such material to be generated during a 3 month 
period multiplied by 20 percent of the bid price. The calculation is 
illustrated, as follows:


                                                                        
                                                                        
                                                                        
Estimated quantity of material to be        3,000                       
 generated each quarter (pounds).                                       
Bid price--$1.00 per pound................   x  $1.00                   
                                           -----------------------------
      Subtotal............................  $3,000                      
20 percent of bid price...................  20                          
                                           -----------------------------
      Amount to accompany bid.............  $600                        
                                                                        
                                                                        

    (2) Other than term bid. With the exception of term bids, payment in 
the amount of 20 percent of the bid shall accompany the bid.
    (b) Payment terms. When a sale conducted by a DoD Component provides 
for immediate pickup, the entire amount of the sales price shall be 
collected from the buyer at the conclusion of the sale. If the sale 
provides for a bid deposit, the balance of the bid price shall be paid 
before removal of the property.
    (c) Form of payment--(1) Cash and certified checks. When a sale is 
conducted by a DoD Component, cash or its equivalent shall be collected 
for bid deposits and for remaining amounts due. Guaranteed negotiable 
instruments, such as cashiers checks, certified checks, travelers 
checks, bank drafts, or postal money orders are acceptable as a cash 
equivalent.
    (2) Personal checks. Personal checks may be accepted by a DoD 
Component only when a performance bond or a bank letter of credit is on 
hand that will cover the amount due. If the check is dishonored, amounts 
due shall be collected from the issuer of the performance bond or letter 
of credit.
    (i) If a bidder intends to use a bond or letter of credit without an 
accompanying personal check, the claim against the performance bond or 
letter of credit shall be made for any amounts due.
    (ii) If personal checks are used, the bond or letter of credit shall 
be returned intact after the applicable personal checks are honored, 
unless other instructions have been received from the bidder.
    (2) Credit cards. Approved credit cards may be accepted by a DoD 
Component for payment.
    (i) Before initiating any credit card transactions, the selling DoD 
Component shall enter into an agreement

[[Page 930]]

with a network commercial bank. Currently, the Treasury has approved the 
use of ``Master Card'' and ``Visa'' charge cards. Changes or additions 
to approved credit cards are announced in Comptroller of the Department 
of Defense (C, DoD) memoranda or in changes to the TFM. Except for 
equipment and communication costs, the Treasury pays any fees normally 
charged to sellers. If the Treasury policy of paying such charges is 
changed, any charges for the processing of approved credit card 
transactions shall be assessed to the buyer.
    (ii) If a credit card is used for the bid deposit and authorization 
is declined, the bid shall be rejected as nonresponsive and other 
bidders considered.
    (iii) Approval for charges against credit cards shall be processed 
as follows:
    (A) The credit card presented shall be passed through the DoD 
installation's credit card swiper. The swiper is connected 
electronically with the network commercial bank selected by the DoD 
Component, and keys are provided to enter the proposed charge amount. If 
the charge is approved, the swiper will provide an approval number that 
shall be recorded on the charge slip.

    Note: A swiper is an electronic device that is used to capture the 
magentic information contained on a credit card and transmit it to the 
network commercial bank for validation and authorization of a sale. The 
information captured normally includes the account number, issuing bank, 
date of expiration of the card, and any credit restrictions that may 
apply.

    (B) The bidder shall sign a standard credit card charge form at the 
sale contracting office. A copy of this form shall be returned to the 
card holder at that time. A copy of the charge slip shall be retained by 
the selling DoD activity as a record of the sale. On the following 
business day, the installation finance and accounting officer or the 
activity providing accounting support shall submit the signed credit 
card forms with a supporting cover sheet showing the total charges to 
the network commercial bank. Accounting control must be maintained over 
such in-transit deposits.
    (C) On receipt of the credit card charge forms, the network 
commercial bank shall charge the bidder's credit card account and 
deposit the funds to the Treasury general account. The network 
commercial bank also is required to forward a copy of the deposit slip 
to the DoD installation making the sale within 1 business day. On 
receipt of the deposit slip, the in-transit account shall be cleared and 
appropriate accounts credited following the procedures in paragraph (d) 
of this section:
    (iv) If a contractor's bid is provided by message, mail, or 
telephone to the U.S. Government using a credit card instead of other 
forms of payment, the following information is required:
    (A) Account number.
    (B) Bidders name, as it appears on the credit card.
    (C) Date of expiration of the card.
    (D) Issuing bank.
    (E) Type of card.

Any additional cost incurred by the Department of Defense in connection 
with the use of the charge card, such as telephone calls to obtain 
approval from the network bank, shall be billed to the purchaser as an 
additive charge.
    (d) Disposition of proceeds. (1) Proceeds from the sale of surplus 
personal property shall be deposited by the collecting DoD Component 
promptly to the U.S. Treasury accounts prescribed in appendix B to this 
part. The use of suspense accounts shall be minimal. If the account 
ultimately to be credited with the proceeds of a sale can be determined 
reasonably at the time the funds are collected, the deposit shall be 
made immediately to that account.
    (2) See paragraph (f) of this section for special instructions on 
the processing of proceeds resulting from the sale of recyclable 
material.
    (e) Return of bid deposits to unsuccessful bidders. (1) Cash 
collected from unsuccessful bidders by a DoD Component shall be 
deposited to account X6875, ``Suspense,'' and a check shall be drawn on 
that account to reimburse unsuccessful bidders.
    (2) Normally, noncash bid deposits shall be returned to unsuccessful 
bidders by DoD Components through the mail. However, when a bidder has 
requested expedited return and has provided the name of a carrier and a 
charge account number, the designated carrier shall be called to pick up 
the

[[Page 931]]

deposit with the explicit condition that applicable carrier costs will 
be charged to the bidder's account.
    (f) Sales of recyclable material. The efforts associated with 
collection and processing of recyclable material are reflected in 
appendix A to this part. The following transactions for others (TFO) 
procedures apply:
    (1) Proceeds from the sale of recyclable material shall be deposited 
in F3875, ``Budget Clearing Account (Suspense).'' The deposit to F3875 
shall identify the fiscal station and the name of the installation (use 
the full name and do not abbreviate) that is to receive the proceeds. 
Deposits that do not provide the necessary information shall be referred 
formally to the property disposal cashier for the required information.
    (2) The Military Department's finance and accounting office 
receiving the sales proceeds shall mail a copy of the cash collection 
voucher to the fiscal station shown on the collection voucher. This 
advance copy shall be used by the fiscal station to record the 
collection of proceeds to its account and shall be used for followup 
purposes, as necessary. The copy received through the financial network 
shall be used to clear the undistributed collection. These vouchers 
shall be mailed in the weekly TFO cycle.
    (3) The Military Department's finance and accounting office shall:
    (i) Report weekly transactions to the responsible fiscal station 
cited on the collection voucher.
    (ii) Report the collections within the same month in the ``Statement 
of Transactions'' to the Treasury.
    (g) Contractor sales of surplus Government-furnished property. (1) 
DFARS Sec. 245.610 provides overall direction for crediting proceeds 
from contractor conducted sales of surplus Government furnished 
property. Paragraph (g)(5) of this section provides the procedures that 
shall be used to ensure proper accounting for such proceeds.
    (2) The contractor making the sale may follow normal company policy 
on bid deposits and form of payment. However, any loss associated with 
dishonored payment shall be the contractor's responsibility.
    (3) The plant clearance officer (PLCO) is responsible for notifying 
the appropriate accounting office of the amounts collected by the 
contractor. The PLCO shall also notify the accounting office whether 
such collections:
    (i) Represent an increase in the dollar value of the applicable 
contract(s).
    (ii) Were made instead of disbursements on the applicable 
contract(s).
    (iii) Were returned to miscellaneous receipt account 972651, ``Sale 
of Scrap and Salvage, Materials, Defense.''
    (4) The accounting office for the contract is identified in the 
accounting classification code. See DoD 7220.9-M, chapter 17 for 
additional information.
    (5) The accounting office shall prepare the source documents 
necessary to account properly for the transaction. The value of 
applicable Government property general-ledger-asset accounts shall be 
reduced for each alternative set forth in paragraph (g)(3) of this 
section. Additionally, for alternatives (addressed in paragraph 
(g)(3)(i) or (g)(3)(ii) of this section, an accounting entry shall be 
made to reflect the creation of reimbursable obligational authority and 
the use of such authority.



Sec. 172.6  Information requirements.

    The reports cited in Secs. 172.5(f)(3) (i) and (ii) of this part are 
exempt from licensing in accordance with paragraph E.4g. of DoD 7750.5-
M.

[[Page 932]]

[GRAPHIC] [TIFF OMITTED] TC21OC91.060


[[Page 933]]



Appendix B to Part 172--Disposition of Amounts Collected From Successful
                                 Bidders                                
------------------------------------------------------------------------
                                              Disposition of:           
                                 ---------------------------------------
        Type of property                                (80%) remaining 
                                   (20%) bid deposit        balance     
------------------------------------------------------------------------
1. Scrap turned in by industrial  IF................  IF.               
 fund (IF) activities.                                                  
2. Usable personal property       IF................  IF.               
 purchased by and turned in by                                          
 IF activities.                                                         
3. Property purchased with funds  __ X8420..........  __ X8420.         
 from trust fund __ X8420,                                              
 ``Surcharge Collections, Sales                                         
 of Commissary Stores''.                                                
4. Automatic data processing      __ F3875, Budget    __ F3875. Upon    
 equipment owned by the General    Clearing Account    receipt of the   
 Services Administration (GSA)     (Suspense).         entire amount due
 and leased to DoD.                                    from the bidder, 
                                                       a check shall be 
                                                       drawn on the     
                                                       suspense account 
                                                       and forwarded to 
                                                       GSA at the       
                                                       following        
                                                       address: General 
                                                       Services         
                                                       Administration   
                                                       Office of Finance
                                                       (WBCRC),         
                                                       Collections and  
                                                       Securities, 7th  
                                                       and I Streets    
                                                       NW., Washington, 
                                                       DC 20407.        
5. Section 605(d) the Foreign                                           
 Assistance Act of 1965,                                                
 provides that proceeds from the                                        
 sale of defense articles shall                                         
 be credited to the                                                     
 appropriation, fund or account                                         
 used to procure the article or                                         
 to the account currently                                               
 available for the same general                                         
 purpose.                                                               
  a. Pre-MAP merger (Pre FY 82)   11__1082,           11__1082.         
   property issued under the       ``Foreign                            
   Military Assistance Program     Military                             
   (MAP) and returned as no        Financing                            
   longer needed, and all MAP      Program''                            
   funded personal property        (Effective 1                         
   belong to Security Assistance   October 1989 the                     
   Offices (SAO).                  11__1080,                            
                                   ``Military                           
                                   Assitance,''                         
                                   account is no                        
                                   longer available                     
                                   for the receipt                      
                                   of proceeds).                        
  b. Security Assistance Offices  978242 XDM__        978242 XDM__      
   (SAO) personal property         S843000.            S843000.         
   purchased with Foreign                                               
   Military Sales Administrative                                        
   Funds (11x8242).                                                     
6. Coast Guard property under     __ F3875..........  __ F3875. Upon    
 the physical control of the                           receipt of the   
 Coast Guard at the time of sale.                      entire amount due
                                                       from the bidder, 
                                                       a check shall be 
                                                       drawn on the     
                                                       suspense account 
                                                       and forwarded to 
                                                       the Coast Guard  
                                                       at the following 
                                                       address:         
                                                       Commandant, U.S. 
                                                       Coast Guard      
                                                       (GFAC),          
                                                       Washington, DC   
                                                       20593.           
7. Property owned by              __ X6874,           __ X6875. Upon    
 nonappropriated fund              ``Suspense''.       receipt of the   
 instrumentalities, excluding                          entire amount due
 garbage suitable for animal                           from the bidder, 
 consumption that is disposed of                       a check shall be 
 under a multiple-pickup                               drawn on the     
 contract.                                             suspense account 
                                                       and forwarded to 
                                                       the applicable   
                                                       instrumentality. 
8. Recyclable material..........  __ F3875 \1\......  __ F3875.\1\ Upon 
                                                       receipt of the   
                                                       entire amount due
                                                       from the bidder, 
                                                       deposit total    
                                                       proceeds to the  
                                                       accounts         
                                                       designated by the
                                                       DoD Military     
                                                       Installation that
                                                       gave the material
                                                       up for disposal. 
9. Lost, abandoned, or unclaimed  972651,``Sale of    __ X6001,         
 privately owned personal          Scrap and Salvage   ``Proceeds of    
 property.                         Materials,          Sales of Lost,   
                                   Defense''.          Abandoned or     
                                                       Unclaimed        
                                                       Personal         
                                                       Property.'' The  
                                                       owner(s) of lost,
                                                       abandoned, or    
                                                       unclaimed        
                                                       property may     
                                                       claim the net    
                                                       proceeds from    
                                                       sale of that     
                                                       property within 5
                                                       years of the date
                                                       of the sale by   
                                                       providing proof  
                                                       of ownership to  
                                                       the government.  
                                                       After 5 years    
                                                       from the date of 
                                                       the sale, any    
                                                       unclaimed net    
                                                       proceeds shall be
                                                       transferred from 
                                                       __ X6001 to      
                                                       general fund     
                                                       miscellaneous    
                                                       receipt account  
                                                       __1060,          
                                                       ``Forfeitures of 
                                                       Unclaimed Money  
                                                       and Property.''  

[[Page 934]]

                                                                        
10. Property owned by a country   Operation and       __ X6875. Upon    
 or international organization.    maintenance         receipt of the   
                                   appropriation of    entire amount due
                                   the DoD Component   from the bidder, 
                                   that sells the      a check for 80%  
                                   property. (This     of the sales     
                                   is reimbursement    price shall be   
                                   for selling         drawn on the     
                                   expenses.).         suspense account 
                                                       and forwarded to 
                                                       the applicable   
                                                       foreign country  
                                                       or international 
                                                       organization.    
11. Bones, fats, and meat         Stock Fund........  Stock Fund.       
 trimmings generated by a                                               
 commissary store.                                                      
12. Government furnished          (\2\).............  (\2\).            
 property sold by contractors.                                          
13. All other property..........  972651............  972651.           
------------------------------------------------------------------------
\1\ 10 U.S.C. 2577 limits the amounts which can be held in F3875 at the 
  end of any fiscal year resulting from the program to $2 million.      
  Amounts in excess of $2 million are to be transferred to Miscellaneous
  Receipts of the Treasury. This instruction provides for immediate     
  distribution of all sales proceeds received from the recyclable       
  program.                                                              
\2\ See subsection D.7. of the basic Instruction.                       

[55 FR 13903, Apr. 13, 1990]



PART 173--COMPETITIVE INFORMATION CERTIFICATE AND PROFIT REDUCTION CLAUSE--Table of Contents




Sec.
173.1  Scope.
173.2  Competitive Information Certification.
173.3  Profit reduction clause.

Appendix to Part 173--List of Contractors for Whom Certification is 
          Required

    Authority: 10 U.S.C. 2202.

    Source: 53 FR 42948, Oct. 25, 1988, unless otherwise noted.



Sec. 173.1  Scope.

    (a) The purpose of the Competitive Information Certificate is to 
provide the Contracting Officer sufficient information and assurance to 
support award of a contract in those circumstances where certification 
is required.
    (b) Although a Competitive Information Certificate provides 
reasonable assurance to the Government, the possibility remains that 
even a diligent internal review by the contractor may fail to identify 
illegal or improper actions. The purpose of the Profit Reduction Clause 
is to ensure effective protection of the Government's interest in making 
contract awards when a Competitive Information Certification is 
required. The Profit Reduction Clause is required in all competitively 
awarded new contracts over $100,000 when a Competitive Information 
Certificate is required prior to award.



Sec. 173.2  Competitive Information Certification.

    (a) The Competitive Information Certificate is required prior to 
award of all competitively awarded new contracts of a value exceeding 
$100,000 to contractors subject to the requirement.
    (1) Corporate activities required to provide the Certificate are 
corporations or corporate divisions which have been the subject of 
search warrants, or as to which other official information indicates 
such certification should be required, and their subsidiaries and 
affiliates. A list of contractors from whom certification is required is 
maintained and published as required under authority of the Department 
of Defense Procurement Task Force.
    (2) The requirement to provide the Certificate may be further 
limited to certain divisions or subsidiaries, contracts or programs upon 
the basis of official information, furnished by the contractor or 
otherwise, sufficient to establish to the satisfaction of the Department 
of Defense that the investigation is so limited. Such information may 
include copies of search warrants, subpoenas and affidavits from 
corporate officials concerning the scope and conduct of the 
investigation. The sufficiency of such information is solely within the 
discretion of the Department of Defense.

[[Page 935]]

    (3) Contractors from whom certification in certain instances is 
required will be relieved of the certification requirement when the 
Department of Defense determines that information developed in the ``Ill 
Wind'' investigation has been resolved in such a manner that 
certification is no longer required to protect the interests of the 
Government.
    (4) A Certificate will not be required prior to the exercise of 
options or noncompetitive award of contracts. This does not limit in any 
manner the Government's ability to inquire into, or require information 
concerning, the circumstances surrounding an underlying competitive 
award.
    (b) With respect to information disclosed under paragraph (1) of the 
Certificate, the offeror must attach to the Certificate a written 
statement detailing what information was obtained, and how, when, and 
from whom it was obtained. This information shall be evaluated at the 
levels prescribed by the contracting component to determine whether 
award of the contract should be made to the offeror. If during this 
review it is determined that the offeror may have obtained an unfair 
competitive advantage from the information and that there is no other 
reason for denying award to the offeror, the reviewing authority shall 
consider whether action may be taken to neutralize the potential unfair 
competitive advantage. Any decision to deny award to an offeror based 
upon information disclosed in the Certificate shall be reviewed and 
approved by the Service Acquisition Executive.
    (c) This certificate and any accompanying statements required, must 
be executed by the offeror's corporate president or his designee at no 
more than one level below the president's level.
    (d) If a contractor from whom certification is required is uncertain 
as to whether competitive information otherwise required to be disclosed 
was generally available to offerors, the uncertainty should be resolved 
by disclosure.
    (e) Contracting Officers may continue to accept Certificates of 
Business Ethics and Integrity complying with the Interim rule in lieu of 
Competitive Information Certificates.
    (f) The Competitive Information Certificate shall be in the 
following form:

                   Competitive Information Certificate

    (1) (Name of the offeror) certifies, to the best of its knowledge 
and belief, that
    (i) With the exception of any information described in an attachment 
to this certificate, and any information the offeror reasonably believes 
was made generally available to prospective offerors, the offeror has 
not knowingly obtained, directly or indirectly from the Government, any 
written information or oral extract or account thereof relating to this 
solicitation which was
    (A) Submitted to the Government by offerors or potential offerors in 
response to the Government's solicitation for bid or proposal;
    (B) Marked by an offeror or potential offeror to indicate the 
information was submitted to the Government subject to an assertion of 
privilege against disclosure;
    (C) Marked or otherwise identified by the Government pursuant to law 
or regulation as classified, source selection sensitive, or for official 
use only; or
    (D) The disclosure of which to the offeror or potential offeror by a 
Government employee would, under the circumstances, otherwise violate 
law or regulation.
    (ii) The offeror named above
    (A) Determined the prices in its offer independently, without, for 
the purpose of restricting competition, any consultation, 
communications, or agreement, directly or indirectly, with any other 
offeror or competitor relating to (1) those prices, (2) the intention to 
submit an offer, or (3), the methods or factors used to calculate the 
prices offered;
    (B) Has not knowingly disclosed the prices in its offer, directly or 
indirectly, to any other offeror or competitor before bid opening (in 
the case of a sealed bid solicitation) or contract award (in the case of 
a negotiated solicitation) unless otherwise required by law;

[[Page 936]]

    (C) Has not attempted to induce any other concern to submit or not 
to submit an offer for the purpose of restricting competition.
    (iii) The offeror has attached an accurate description of the 
internal review forming the basis for the certifications provided 
herein.

Corporate President or Designee.



Sec. 173.3  Profit reduction clause.

    The following profit reduction clause is required in all 
competitively awarded new contracts over $100,000 when a Competitive 
Information Certificate is required prior to award.
    Profit Reduction for Illegal or Improper Activity
    (a) The government, at its election, may reduce the contract price 
by the amount of any anticipated profit determined as set forth in 
paragraph (b) of this section; if
    (1) A person or business entity is convicted for violating 18 U.S.C. 
201-224 (bribery, graft, and conflicts of interest), 18 U.S.C. 371 
(conspiracy), 18 U.S.C. 641 (theft of public money, property, or 
records), 18 U.S.C. 1001 (false statements), 18 U.S.C. 1341 (fraud), 18 
U.S.C. 1343 (fraud by wire) for any act in connection with or related to 
the obtaining of this contract; or
    (2) The Secretary of Defense, or his designee, determines that the 
Competitive Information Certificate submitted by the offeror in 
connection with award of this contract
    (i) Was materially false at the time it was filed, or
    (ii) Notwithstanding the offeror's best knowledge and belief, was 
materially incomplete or inaccurate.

Prior to making such a determination, the Secretary or his designee, 
shall provide to the contractor a written statement of the action being 
considered and the basis therefor. The contractor shall have not less 
than 30 calendar days after receipt to submit in person, in writing, or 
through a representative, information and argument in opposition to the 
proposed reduction. The Secretary or his designee may, upon good cause 
shown, determine to reduce the contract price by less than the amount of 
any profit determined under paragraph (b) of this section.
    (b) The amount of anticipated profits referred to in Sec. 173.3(a) 
shall be:
    (1) In the case of a cost-plus-fixed-fee contract, the amount of the 
fee specified in the contract at the time of award;
    (2) In the case of fixed-price-incentive-profit or cost-plus-
incentive-fee contract, the amount of the target profit or fee specified 
in the contract at the time of award; or
    (3) In the case of a firm-fixed-price contract, the amount of 
anticipated profit determined by the contracting officer, after notice 
to the contractor and opportunity to comment, from records or documents 
in existence prior to the date of the award of the contract.
    (c) The rights and remedies of the government provided in this 
cluase shall not be exclusive and are in addition to any other rights 
and remedies provided by law or under this contract.

  Appendix to Part 173--List of Contractors for Whom Certification Is 
                                Required

Armtec, Incorporated, 410 Highway 19 South, Palatka, FL 32077
Cubic Corporation, 9333 Balboa Avenue, San Diego, CA 92123 as to 
          contracts originating in the following division:
    Cubic Defense Systems, Incorporated, San Diego, CA
Executive Resource Associates, 2011 Crystal Drive, suite 813, Arlington, 
VA 22202
Hazeltine Corporation, 500 Commack Road, Commack, NY 11725 and all 
          divisions and subsidiaries as follows:
    Hazeltine Corporation, Electro-Acoustic Division, 115 Bay State 
Drive, Braintree, MA 02184
    Hazeltine Corporation, Government Systems & Products Division, Cuba 
Hill Road, Greenlawn, NY 11740
    Hazeltine Research, Incorporated, 188 Industrial Drive, Elmhurst, IL 
60126
Kane Paper Corporation, 2365 Milburn Avenue, Baldwin, NY 11510
Litton Data Systems, Incorporated, 8000 Woodley Ave., Van Nuys, CA 91408
Loral Defense Systems Akron, 1210 Massillon Rd., Akron, OH 44315
McDonnel Douglas Corporation, Banshee Rd., P.O. Box 516, St. Louis, MO 
          63166 as to contracts originating in the following division:
    McDonnell Aircraft Company, St. Louis, MO
Northrop Corporation, Ventura Division, 1515 Rancho Conejo Boulevard, 
Newbury Park, CA 91320

[[Page 937]]

Teledyne Electronics, 649 Lawrence Drive, Newbury Park, CA 91320
Unisys Corporation, One Unisys Place, Detroit, MI 48232, as to contracts 
          originating in the following divisions or subsidiaries:
    Unisys Corporation, Defense Systems Division, 3333 Pilot Knob Road, 
Eagan, MN
    Unisys Corporation, Defense Systems Division, Neil Armstrong 
Boulevard, Eagan, MN
    Unisys Shipboard & Ground Systems Group, Marquis Avenue, Great Neck, 
NY 11020
United Technologies Corporation, UT Bldg., Hartford, CT 06101 as to 
          contracts originating in the following divisions or 
          subsidiaries:
    Norden Systems, Incorporated
    Pratt & Whitney
Varian Associates, Incorporated, 611 Hansen Way, Palo Alto, CA as to 
          contracts originating in the following division:
    *Continental Electronics Manufacturing Company, Dallas, TX
---------------------------------------------------------------------------

    *Firm suspended as of July 6, 1988.
---------------------------------------------------------------------------

Whittaker Corporation (Lee Telecommunications Corporation (LTC), Route 
1, Farmington, AR 72730)
Zubier Enterprises, 6201 Pine Street, Harrisburg, PA.

[[Page 938]]



                 SUBCHAPTER G--CLOSURES AND REALIGNMENT





PART 174--REVITALIZING BASE CLOSURE COMMUNITIES--Table of Contents




Sec.
174.1  Purpose.
174.2  Applicability.
174.3  Definitions.
174.4  Policy.
174.5  Responsibilites.

    Authority: 10 U.S.C. 2687 note.

    Source: 60 FR 37341, July 20, 1995. Redesignated at 61 FR 54097, 
Oct. 17, 1996.



Sec. 174.1  Purpose.

    This part:
    (a) Establishes policy and assigns responsibilities under the 
President's Five-Part Plan, ``A Program to Revitalize Base Closure 
Communities,'' July 2, 1993,\1\ to speed the economic recovery of 
communities where military bases are slated to close.
---------------------------------------------------------------------------

    \1\ Available from the Office of the Assistant Secretary of Defense, 
The Pentagon, Room 1D760, Washington, DC 20301-3300; email: ``base__ 
[email protected]''
---------------------------------------------------------------------------

    (b) Implements 107 Stat. 1909, National Defense Authorization Act 
for Fiscal Year 1994, Title XXIX and The Base Closure Community 
Redevelopment and Homeless Assistance Act of 1994 (Pub. L. 103-421).
    (c) Authorizes the publication of DoD 4165.66-M, ``Base Reuse 
Implementation Manual,'' in accordance with DoD 5025.1-M, ``DoD 
Directive System Procedures,'' August 1994.



Sec. 174.2  Applicability.

    This part applies to the Office of the Secretary of Defense, the 
Military Departments, the Chairman of the Joint Chiefs of Staff, the 
Unified Combatant Commands, the Defense Agencies, and the DoD Field 
Activities (hereafter referred to collectively as ``the DoD 
Components'').



Sec. 174.3  Definitions.

    (a) Closure. All missions of the installation have ceased or have 
been relocated. All personnel positions (military, civilian and 
contractor) have either been eliminated or relocated, except for 
personnel required for caretaking, conducting any ongoing environmental 
cleanup, and disposal of the base, or personnel remaining in authorized 
enclaves.
    (b) Relaignment. Any action that both reduces and relocates 
functions and DoD civilian personnel positions, but does not include a 
reduction in force resulting from workload adjustments, reduced 
personnel or funding levels, skill imbalances, or other similar cause. A 
realignment may terminate the DoD requirement for the land and 
facilities on part of an installation. That part of the installation 
shall be treated as ``closed'' for purposes of this part.



Sec. 174.4  Policy.

    It is DoD policy to:
    (a) Help communities impacted by base closures and realignments 
achieve rapid economic recovery through effective reuse of the assets of 
closing and realigning bases--more quickly, more effectively and in ways 
based on local market conditions and locally developed reuse plans. This 
will be accomplished by quickly insuring that communities and the 
Military Departments communicate effectively and work together to 
accomplish mutual goals of quick property disposal and rapid job 
generation.
    (b) This part does not create any rights or remedies and may not be 
relied upon by any person, organization, or other entity to allege a 
denial of any rights or remedies other than those provided by Title XXIX 
of Pub. L. 103-160, or Pub. L. 103-421.



Sec. 174.5  Responsibilities.

    (a) The Under Secretary of Defense for Acquisition and Technology 
shall issue DoD Instructions as necessary, to further implement 
applicable public laws effecting base closure implementation, and shall 
monitor compliance with this part. All authorities of the Secretary of 
Defense in Public Law 103-421 (108 Stat. 4326 et. seq.); Public Law 103-
160, Title XXIX (107 Stat. 1909 et. seq.); Public Law 101-510, Section 
2905 (104 Stat. 1813 et. seq.); and Public Law 100-526, Section 204 (102 
Stat. 2627 et.

[[Page 939]]

seq.), are hereby delegated to the Assistant Secretary of Defense for 
Economic Security and may be delegated further.
    (b) The Heads of the DoD Components shall advise their personnel 
with responsibilities related to base closures of the policies set forth 
in this part.



PART 175--REVITALIZING BASE CLOSURE COMMUNITIES--BASE CLOSURE COMMUNITY ASSISTANCE--Table of Contents




Sec.
175.1  Purpose.
175.2  Applicability.
175.3  Definitions.
175.4  Policy.
175.5  Responsibilities.
175.6  Delegations of authority.
175.7  Procedures.

    Authority: 10 U.S.C. 2687 note.

    Source: 60 FR 37341, July 20, 1995. Redesignated at 61 FR 54097, 
Oct. 17, 1996.



Sec. 175.1  Purpose.

    This part prescribes procedures to implement ``Revitalizing Base 
Closure Communities'' (32 CFR part 174), the President's five-part 
community reinvestment program, and real and personal property disposal 
to assist the economic recovery of communities impacted by base closures 
and realignments. The expeditious disposal of real and personal property 
will help communities get started with reuse early and is therefore 
critical to timely economic recovery.
[60 FR 37341, July 20, 1995. Redesignated and amended at 61 FR 54097, 
Oct. 17, 1996]



Sec. 175.2  Applicability.

    This part applies to the Office of the Secretary of Defense, the 
Military Departments, the Chairman of the Joint Chiefs of Staff, the 
United Combatant Commands, the Defense Agencies, and the DoD Field 
Activities (hereafter referred to collectively as ``the DoD 
Components'').



Sec. 175.3  Definitions.

    (a) Base Closure Law. The provisions of Title II of the Defense 
Authorization Amendments and Base Closure Realignment Act (Pub. L. 100-
526, 102 Stat. 2623, 10 U.S.C. 2687 note), or the Defense Base Closure 
and Realignment Act of 1990 (Pub. L. 101-510, Part A of Title XXIX of 
104 Stat. 1808, 10 U.S.C. 2687 note).
    (b) Closure. All missions of the installation have ceased or have 
been relocated. All personnel positions (military, civilian, and 
contractor) have either been eliminated or relocated, except for 
personnel required for caretaking, conducting any ongoing environmental 
cleanup, and disposal of the base, or personnel remaining in authorized 
enclaves.
    (c) Consultation. Explaining and discussing an issue, considering 
objections, modifications, and alternatives; but without a requirement 
to reach agreement.
    (d) Date of approval. The date on which the authority of Congress to 
disapprove Defense Base Closure and Realignment Commission 
recommendations for closures or realignments of installations expires 
under Title XXIX of 104 Stat. 1808, as amended.
    (e) Excess property. Any property under the control of a Military 
Department that the Secretary concerned determines is not required for 
the needs of the Department of Defense.
    (f) Realignment. Any action that both reduces and relocates 
functions and DoD civilian personnel positions, but does not include a 
reduction in force resulting from workload adjustments, reduced 
personnel or funding levels, skill imbalances, or other similar cause. A 
realignment may terminate the DoD requirement for the land and 
facilities on part of an installation. That part of the installation 
shall be treated as ``closed'' for this document.
    (g) Local Redevelopment Authority (LRA). Any authority or 
instrumentality established by state or local government and recognized 
by the Secretary of Defense, through the Office of Economic Adjustment, 
as the entity responsible for developing the redevelopment plan with 
respect to the installation or for directing implementation of the plan.
    (h) Rural. An area outside a Metropolitan Statistical Area.
    (i) Surplus property. Any excess property not required for the needs 
and the

[[Page 940]]

discharge of the responsibilities of federal agencies. Authority to make 
this determination, after screening with all federal agencies, rests 
with the Military Departments.
    (j) Communities in the Vicinity of the Installation. The communities 
that constitute the political jurisdictions (other than the State in 
which the installation is located) that comprise the redevelopment 
authority for the installation.
    (k) Installation. A base, camp, post, station, yard, center, 
homeport facility for any ship, or other activity under the jurisdiction 
of the Department of Defense, including any leased facility. Such term 
does not include any facility used primarily for civil works, rivers, 
and harbors projects, flood control, or other project not under the 
primary jurisdiction or control of the Department of Defense.
    (l) Similar use. A use that is comparable to or essentially the same 
as the use under the original lease.
[60 FR 37341, July 20, 1995, as amended at 62 FR 66525, Dec. 19, 1997]



Sec. 175.4  Policy.

    It is DoD policy to help communities impacted by base closures and 
realignments achieve rapid economic recovery through effective reuse of 
the assets of closing and realigning bases-more quickly, more 
efficiently, and in ways based on local market conditions and locally 
developed reuse plans. This will be accomplished by quickly ensuring 
that communities and the Military Departments communicate effectively 
and work together to accomplish mutual goals of quick property disposal 
and rapid job generation. This regulation does not create any rights of 
remedies and may not be relied upon by any person, organization, or 
other entity to allege a denial of any rights or remedies other than 
those provided by Title XXIX of Public Law 103-160, Public Law 103-421, 
or Title XXVII of Public Law 104-106.
[62 FR 66525, Dec. 19, 1997]



Sec. 175.5  Responsibilities.

    (a) The Deputy Under Secretary of Defense (Industrial Affairs and 
Installations), after coordination with the General Counsel of the 
Department of Defense and other officials as appropriate, may issue 
guidance through the publication of a Manual or other such document 
necessary to implement laws, Directives and Instructions on the 
retention or disposal of real and personal property at closing or 
realigning bases.
    (b) The Heads of the DoD Components shall ensure compliance with 
this part and guidance issued by the Assistant Secretary of Defense for 
Economic Security and the Deputy Under Secretary of Defense (Industrial 
Affairs and Installations) on revitalizing base closure communities.
[62 FR 66525, Dec. 19, 1997]



Sec. 175.6  Delegations of authority.

    (a) The authority provided by sections 202 and 203 of the Federal 
Property and Administrative Services Act of 1949, as amended (40 U.S.C. 
483 and 484) for the utilization and disposal of excess and surplus 
property at closing and realigning bases has been delegated by the 
Administrator, GSA, to the Secretary of Defense by delegations dated 
March 1, 1989; October 9, 1990; September 13, 1991; and, September 1, 
1995.\1\ Authority under these delegations has been previously delegated 
to the Secretaries of the Military Departments, who may delegate this 
authority further.
---------------------------------------------------------------------------

    \1\ Available from the Base Closure and Community Reinvestment 
Office, 400 Army Navy Drive, Suite 200, Arlington, VA 22202, email: 
``base '72'[email protected]''
---------------------------------------------------------------------------

    (b) Authorities delegated to the Deputy Under Secretary of Defense 
(Industrial Affairs and Installations) \2\ by Sec. 174.5 of this chapter 
are hereby redelegated to the Secretaries of the Military

[[Page 941]]

Departments, unless otherwise provided within this part or other DoD 
Directive, Instruction, Manual, or Regulation. These authorities may be 
delegated further.
---------------------------------------------------------------------------

    \2\ A Deputy Secretary of Defense memorandum of May 15, 1996, ``OUSD 
(Acquisition and Technology) Reorganization'' disestablished the office 
of the Assistant Secretary of Defense for Economic Security and 
established the office of the Deputy Under Secretary of Defense 
(Industrial Affairs and Installations). Copies are available from the 
Base Closure and Community Reinvestment Office, 400 Army Navy Drive, 
Suite 200, Arlington, VA 22202, email: ``base '72'[email protected]''
---------------------------------------------------------------------------

[62 FR 66525, Dec. 19, 1997]



Sec. 175.7  Procedures.

    (a) Identification of interest in real property. (1) To speed the 
economy recovery of communities affected by closures and realignments, 
it is DoD policy to identify DoD and federal interests in real property 
at closing and realigning military bases as quickly as possible. The 
Military Department having responsibility for the closing or realigning 
base shall identify such interests. The Military Department will keep 
the Local Redevelopment Authority (LRA) informed of these interests. 
This section establishes a uniform process, with specified timelines, 
for identifying real property which is excess to the Military Department 
for use by other Departments of Defense (DoD) Components and other 
federal agencies, and for the disposal of surplus property for various 
purposes.
    (2) Upon the President's submission of the recommendations for base 
closures and realignments to the Congress in accordance with the Defense 
Base Closure and Realignment Act of 1990 (Pub. L. 101-510), the Military 
Department shall send out a notice of potential availability to the 
other DoD Components, and other federal agencies. The notice of 
potential availability is a public document and should be made available 
in a timely basis, upon request. Federal agencies are encouraged to 
review this list, and to evaluate whether they may have a requirement 
for the listed properties. The notice of potential availability should 
describe the property and buildings that may be available for transfer. 
Installations which wholly or in part are comprised of withdrawn and 
reserved public domain lands should implement paragraph (a)(12) of this 
section at the same time.
    (3) Military Departments should consider LRA input in making 
determinations on the retention of property (size of cantonment area), 
if provided. Generally, determinations on the retention of property (or 
size of the cantonment area) should be completed prior to the date of 
approval of the closure or realignment.
    (4) Within one week of the date of approval of the closure or 
realignment, the Military Department shall issue a formal notice of 
availability to other DoD Components and federal agencies covering 
closing and realigning installation buildings and property available for 
transfer to other DoD Components and federal agencies. Withdrawn public 
domain lands, which the Secretary of the Interior has determined are 
suitable for return to his jurisdiction, will not be included in the 
notice of availability.
    (5) Within 30 days of date of the notice of availability, any DoD 
Component or federal agency is required to provide a written, firm 
expression of interest for buildings and property. An expression of 
interest must explain the intended use and the corresponding requirement 
for the buildings and property.
    (6) Within 60 days of the date of the notice of availability, the 
DoD Component or federal agency expressing interest in buildings or 
property must submit an application for transfer of such property to the 
Military Department or federal agency.
    (i) Within 90 days of the notice of availability, the FAA should 
survey the air traffic control and air navigation equipment at the 
installation to determine what is needed to support the air traffic 
control, surveillance, and communications functions supported by the 
Military Department, and to identify the facilities needed to support 
the National Airspace System. FAA requests for property to manage the 
National Airspace System will not be governed by paragraph (a)(9) of 
this section. Instead, such requests will be governed by the 
requirements of 41 CFR 101-47.308-2, to determine the transfer of 
property necessary for control of the airspace being relinquished by the 
Military Department.
    (7) The Military Department will keep the LRA informed of the 
progress in identifying interests. At the same time, the LRA is 
encouraged to contact federal agencies which sponsor public benefit 
transfers for information and

[[Page 942]]

technical assistance. The Military Department will provide points of 
contact at the federal agencies to the LRA.
    (8) Federal agencies and DoD Components are encouraged to discuss 
their plans and needs with the LRA, if an LRA exists. DoD Components and 
federal agencies are encouraged to notify the Military Department of the 
results of this non-binding consultation. The Military Departments, the 
Base Transition Coordinator, and the Office of Economic Adjustment 
Project Manager are available to help facilitate communication between 
the federal agencies, DoD Components, and the LRA.
    (9) A request for property from a DoD Component or federal agency 
must contain the following information:
    (i) A completed GSA Form 1334, Request for Transfer (for requests 
from other DoD Components a DD Form 1354 is required). This must be 
signed by the head of the Component of the Department or Agency 
requesting the property. If the authority to acquire property has been 
delegation, a copy of the delegation must accompany the form;
    (ii) A statement from the head of the requesting Component or agency 
that the request does not establish a new program (i.e., one that has 
never been reflected in a previous budget submission or Congressional 
action);
    (iii) A statement that the requesting Component or agency has 
reviewed its real property holdings and cannot satisfy this requirement 
with existing property. This review must include all property under the 
requester's accountability, including permits to other federal agencies 
and outleases to other organizations;
    (iv) A statement that the requested property would provide greater 
long-term economic benefits than acquisition of a new facility or other 
property for the program;
    (v) A statement that the program for which the property is requested 
has long-term viability;
    (vi) A statement that considerations of design, layout, geographic 
location, age, state of repair, and expected maintenance costs of the 
requested property clearly demonstrate that the transfer will prove more 
economical over a sustained period of time than acquiring a new 
facility;
    (vii) A statement that the size of the property requested is 
consistent with the actual requirement;
    (viii) A statement that fair market value reimbursement to the 
Military Department will be made within two years of the initial request 
for the property, unless this obligation is waived by the Office of 
Management and Budget and the Secretary of the Military Department or a 
public law specifically provides for a non-reimbursable transfer. 
However, requests from the Military Departments or DoD Components do not 
need an Office of Management and Budget waiver; and
    (ix) A statement that the requesting DoD Component or federal agency 
agrees to accept the care and custody costs for the property on the date 
the property is available for transfer, as determined by the Military 
Department.
    (10) The Military Department will make it decision on a request from 
a federal agency, Military Department, or DoD Component based upon the 
following factors, from the Federal Property Management Regulations (41 
CFR 101-47.201-2):
    (i) The paramount consideration shall be the validity and 
appropriateness of the requirement upon which the proposal is based;
    (ii) The proposed federal use is consistent with the highest and 
best use of the property;
    (iii) The requested transfer will not have an adverse impact on the 
transfer of any remaining portion of the base;
    (iv) The proposed transfer will not establish a new program or 
substantially increase the level of an agency's existing programs;
    (v) The application offers fair market value for the property, 
unless waived;
    (vi) The proposed transfer addresses applicable environmental 
responsibilities to the satisfaction of the Military Department; and
    (vii) The proposed transfer is in the best interest of the 
Government.
    (11) When there are more than one acceptable applications for the 
same building or property, the Military Department responsible for the 
installation should first consider the needs of the military to carry 
out its mission. The Military Department should then

[[Page 943]]

consider the proposal's economic development and job creation potential 
and the LRA's comments, as well as the other factors in the 
determination of highest and best use.
    (12) Closing or realigning installations may contain ``public domain 
lands'' which have been withdrawn by the Secretary of the Interior from 
operation of the public land laws and reserved for the Defense 
Department's use. Lands deemed suitable for return to the public domain 
are not real property governed by the Federal Property and 
Administrative Services Act of 1949, as amended (40 U.S.C. 472), and are 
not governed by the property management and disposal provisions of the 
Base Closure and Realignment Act of 1988 (Pub. L. 100-526) and Defense 
Base Closure and Realignment Act of 1990 (Pub. L. 101-510). Public 
domain lands are under the jurisdiction of the Secretary of the Interior 
and administered by the Bureau of Land Management (BLM) unless the 
Secretary of the Interior has withdrawn the lands and reserved them for 
another federal agency's use.
    (i) The Military Department responsible for a closing or realigning 
installation will provide the BLM with the notice of potential 
availability, as well as information about which, if any, public domain 
lands will be affected by the installation's closing.
    (ii) The BLM will review the notice of potential availability to 
determine if any installations contain withdrawn public domain lands. 
Before the date of approval of the closure or realignment, the BLM will 
review its land records to identify any withdrawn public domain lands at 
the closing installations. Any records discrepancies between the BLM and 
Military Departments should be resolved within this time period. The BLM 
will notify the Military Departments as to the final agreed upon 
withdrawn and reserved public domain lands at installations.
    (iii) Upon agreement as to what withdrawn and reserved public domain 
lands are affected at closing installations, the BLM will initiate a 
screening of DOI agencies to determine if these lands are suitable for 
programs of the Secretary of the Interior.
    (iv) Military Departments will transmit a Notice of Intent to 
Relinquish (see 43 CFR part 2372) to the BLM as soon as it is known that 
there is no DoD Component interest in reusing the public domain lands. 
The BLM will complete the suitability determination screening process 
within 30 days of receipt of the Military Department's Notice of Intent 
to Relinquish. If a DoD Component is approved to reuse the public domain 
lands, the BLM will be notified and BLM will determine if the current 
authority for military use of these lands needs to be modified/amended.
    (v) If BLM determines the land is suitable for return, they shall 
notify the Military Department that the intent of the Secretary of the 
Interior is to accept the relinquishment of the Military Department.
    (vi) If BLM determines the land is not suitable, the land should be 
disposed of pursuant to base closure law.
    (13) The Military Department should make its surplus determination 
within 100 days of the issuance of the notice of availability, and shall 
inform the LRA of the determination. If requested by the LRA, the 
Military Department may postpone the surplus determination for a period 
of no more than six months after the date of approval of the closure of 
realignment.
    (i) In unusual circumstances, extensions beyond six months can be 
granted by the Deputy Under Secretary of Defense (Industrial Affairs and 
Installations).
    (ii) Extensions of the surplus determination should be limited to 
the portions of the installation where there is an outstanding interest, 
and every effort should be made to make decisions on as much of the 
installation as possible, within the specified timeframes.
    (14) Once the surplus determination has been made, the Military 
Department shall:
    (i) Follow the procedures outlined in paragraph (b) of this section, 
if applicable.
    (ii) Or, for installations approved for closure or realignment after 
October 25, 1994, and installations approved for closure or realignment 
prior to October 25, 1994, that have elected, prior to December 24, 
1994, to come under the

[[Page 944]]

process outlined in the Base Closure Community Redevelopment and 
Homeless Assistance Act of 1994, follow the procedures outlined in 
paragraph (c) of this section.
    (15) Following the surplus determination, but prior to the disposal 
of property, the Military Department may, at its discretion, withdraw 
the surplus determination and evaluate a federal agency's late request 
for excess property.
    (i) Transfers under this paragraph shall be limited to special 
cases, as determined by the Secretary of the Military Department.
    (ii) Requests shall be made to the Military Department, as specified 
under paragraphs (a)(8) and (a)(9) of this section, and the Military 
Department shall notify the LRA of such late request.
    (iii) Comments received from the LRA and the time and effort 
invested by the LRA in the planning process should be considered when 
the Military Department is reviewing a late request.
    (b) Homeless screening for properties not covered by the Base 
Closure Community Redevelopment and Homeless Assistance Act of 1994. (1) 
This section outlines the procedure created for the identification of 
real property to fulfill the needs of the homeless by section 2905(b)(6) 
of Pub. L. 101-510, as amended by Public Law 103-160 (referred to as the 
Pryor Amendment). It applies to BRAC 88, 91 and 93 bases if the LRA did 
not elect to be subject to the alternate homeless assistance screening 
procedure contained in the Base Closure Community Redevelopment and 
Homeless Assistance Act of 1994.
    (2) The Military Department shall sponsor a workshop or seminar in 
the communities which have closing or realigning bases, unless such a 
workshop or seminar has already been held. These workshops or seminars 
will be conducted prior to the Federal Register publication by HUD of 
available property to assist the homeless.
    (i) Not later than the date upon which the determination of surplus 
is made, the Military Department shall complete any determinations or 
surveys necessary to determine whether any building is available to 
assist the homeless. The Military Department shall then submit the list 
of properties available to assist the homeless to HUD.
    (ii) HUD shall make a determination of the suitability of each 
property to assist the homeless in accordance with the Stewart B. 
McKinney Homeless Assistance Act, 42 U.S.C. 11411, (the McKinney Act). 
Within 60 days from the date of receipt of the information from the 
Department of Defense, HUD shall publish a list of suitable properties 
that shall become available when the base closes or realigns.
    (iii) The listing of properties in the Federal Register under this 
procedure shall contain the following statement. (The listing of 1988 
base closure properties that will be reported to HUD shall refer to 
section 204(b)(6) of Public Law 100-526 instead of section 2905(b)(6) of 
Public Law 101-510):

    The properties contained in this listing are closing and realigning 
military installations. This report is being accomplished pursuant to 
section 2905(b)(6) of Public Law 101-510, as amended by Public Law 103-
160. In accordance with section 2905(b)(6), this property is subject to 
a one-time publication under the McKinney Act after which property not 
provided to homeless assistance providers will not be published again 
unless there is no expression of interest submitted by the local 
redevelopment authority in the one-year period following the end of the 
McKinney screening process pursuant to this publication.

    (3) Providers of assistance to the homeless shall then have 60 days 
in which to submit expressions of interest to HHS in any of the listed 
properties. If a provider indicates an interest in a listed property, it 
shall have an additional 90 days after submission of its written 
expression of interest to submit a formal application to HHS, a period 
which HHS can extend. HHS shall then have 25 days after receipt of a 
completed application to review and complete all actions on such 
applications.
    (4) During this screening process (from 60 to 175 days following the 
Federal Register publication, as appropriate), disposal agencies shall 
take no final disposal action or allow reuse of property that HUD has 
determined suitable and that may become available for homeless 
assistance unless and until:

[[Page 945]]

    (i) No timely expressions of interest from providers are received by 
HHS;
    (ii) No timely applications from providers expressing interest are 
received by HHS; or,
    (iii) HHS rejects all applications received for a specific property.
    (5) The Military Department should promptly inform the affected LRA, 
the Governor of the State, local governments, and agencies which support 
public benefit conveyances of the date the surplus property will be 
available for community reuse if:
    (i) No provider expresses an interest to HHS in a property with the 
allotted 60 days;
    (ii) There are expressions of interest by homeless assistance 
providers, but no application is received by HHS from such a provider 
within the subsequent 90-day application period (or within the longer 
application period if HHS has granted an extension); or
    (iii) HHS rejects all applications for a specific property at any 
time during the 25 day HHS review period.
    (6) The LRA shall have 1 year from the date of notification under 
paragraph (b)(5) of this section to submit a written expression of 
interest to incorporate the remainder of the property into a 
redevelopment plan.
    (7) During the allotted 1-year period for the LRA to submit a 
written expression of interest for the property, surplus properties not 
already approved for homeless reuse shall not be available for homeless 
assistance. The surplus properties will also not be advertised by HUD as 
suitable during these 1-year periods. The surplus property may be 
available for interim leases consistent with paragraph (g) of this 
section.
    (8) If the LRA does not express in writing its interest in a 
specific property during the allotted 1-year period or it notifies the 
Military Department it is not interested in the property, the disposal 
agency shall again notify HUD of the date of availability of the 
property for homeless assistance. HUD may then list the property in the 
Federal Register as suitable and available after the base closes 
following the procedures of the McKinney Act.
    (c) Reserved. Additional regulations will be promulgated in a 
publication of the Departments of Defense and Housing and Urban 
Development to address state and local screening and approval of 
redevelopment plans for installations covered by the Base Closure 
Community Redevelopment and Homeless Assistance Act of 1994 (Pub. L. 
103-421).
    (d) Local Redevelopment Authority and the Redevelopment Plan. (1) 
The LRA should have broad-based membership, including, but not limited 
to, representatives from those jurisdictions with zoning authority over 
the property. Generally, there will be one recognized LRA per 
installation.
    (2) The LRA should focus primarily on developing a comprehensive 
redevelopment plan based upon local needs. The plan should recommend 
land uses based upon an exploration of feasible reuse alternatives. If 
applicable, the plan should consider notices of interest received under 
the provisions of the Base Closure Community Redevelopment and Homeless 
Assistance Act of 1994 (Pub. L. 103-421). This section shall not be 
construed to require a plan that is enforceable under state and local 
land use laws, nor is it intended to create any exemption from such 
laws.
    (3) The Military Department will develop a disposal plan and 
complete the appropriate environmental documentation no later than 12 
months from receipt of the redevelopment plan. The local redevelopment 
plan will generally be used as the basis for the proposed action in 
conducting environmental analyses required by under the National 
Environmental Policy Act of 1969 (NEPA), (42 U.S.C. 4332 et seq.). The 
disposal plan will specifically address the methods for disposal of 
property at the installation, including conveyances for homeless 
assistance, public benefit transfers, public sales, Economic Development 
Conveyances and other disposal methods.
    (i) In the event there is no LRA recognized by DoD and/or if a 
redevelopment plan is not received from the LRA within 15 months from 
the determination of surplus under paragraph (a)(13) of this section, 
(unless an extension of time has been granted by the Deputy Under 
Secretary of Defense (Industrial Affairs and Installations)), the 
applicable Military Department shall proceed with the disposal of 
property

[[Page 946]]

under applicable property disposal and environmental laws and 
regulations.
    (ii) [Reserved]
    (e) Economic development conveyances. (1) Section 2903 of Public Law 
103-160 gives the Secretary of Defense the authority to transfer 
property to local redevelopment authorities for consideration in cash or 
in kind, with or without initial payment, or with only partial payment 
at time of transfer, at or below the estimated present fair market value 
of the property. This authority creates an additional tool for local 
communities to help spur economic opportunity through a new real 
property conveyance method specifically designed for economic 
development, referred to as the ``Economic Development Conveyance'' 
(EDC).
    (2) The EDC can only be used when other surplus federal property 
disposal authorities for the intended land use cannot be used to 
accomplish the necessary economic redevelopment.
    (3) An LRA is the only entity able to receive property under an EDC.
    (4) A properly completed application will be the basis for a 
decision on whether an LRA will be eligible for an EDC. An application 
should be submitted by the LRA after a Redevelopment Plan is adopted by 
the LRA. The Secretary of the Military Departments shall establish a 
reasonable time period for submission of the EDC application after 
consultation with the LRA. The Military Departments will review the 
applications and make a decision whether to make an EDC based on the 
criteria specified in paragraph (e)(7) of this section. The terms and 
conditions of the EDC will be negotiated between the Military 
Departments and the LRA. Bases in rural areas shall be conveyed with no 
consideration if they meet the standards in paragraph (f)(5) of this 
section.
    (5) The application should explain why an EDC is necessary for 
economic redevelopment and job creation. In addition to the elements in 
paragraph (e)(5) of this section, after Military Department review of 
the application, additional information may be requested to allow for a 
better evaluation of the application. The application should also 
contain the following elements:
    (i) A copy of the adopted redevelopment plan.
    (ii) A project narrative including the following:
    (A) A general description of property requested.
    (B) A description of the intended uses.
    (C) A description of the economic impact of closure or realignment 
on the local communities.
    (D) A description of the financial condition of the community and 
the prospects for redevelopment of the property.
    (E) A statement of how the EDC is consistent with the overall 
Redevelopment Plan.
    (iii) A description of how the EDC will contribute to short- and 
long-term job creation and economic redevelopment of the base and 
community, including projected number, and type of new jobs it will 
assist in creating.
    (iv) A business/operational plan for the EDC parcel, including such 
elements as:
    (A) A development timetable, phasing schedule and cash flow 
analysis.
    (B) A market and financial feasibility analysis describing the 
economic viability of the project, including an estimate of net proceeds 
over a fifteen-year period, the proposed consideration or payment to the 
Department of Defense, and the estimated present fair market value of 
the property.
    (C) A cost estimate and justification for infrastructure and other 
investments needed for the development of the EDC parcel.
    (D) Local investment and proposed financing strategies for the 
development.
    (v) A statement describing why other authorities--such as public or 
negotiated sale and public benefit transfers for education, parks, 
public health, aviation, historic monuments, prisons, and wildlife 
conservation--cannot be used to accomplish the economic development and 
job creation goals.
    (vi) If a transfer is requested for less than the estimated present 
fair market value (``FMV''), with or without initial payment at the time 
of transfer, then a statement should be provided justifying the 
discount. The statement should include the amount and form of the

[[Page 947]]

proposed consideration, a payment schedule, the general terms and 
conditions for the conveyance, and projected date of conveyance.
    (vii) A statement of the LRA's legal authority to acquire and 
dispose of the property.
    (6) Upon receipt of an application for an EDC, the Secretary of the 
Military Department will determine whether an EDC is needed to spur 
economic development and job creation and examine whether the terms and 
conditions proposed are fair and reasonable. The Military Department may 
also consider information independent of the application, such as views 
of other federal agencies, appraisals, caretaker costs and other 
relevant material. The Military Department may propose and negotiate any 
alternative terms or conditions that it considers necessary.
    (7) The following factors will be considered, as appropriate, in 
evaluating the application and the terms and conditions of the proposed 
transfer, including price, time of payment and other relevant methods of 
compensation to the federal government.
    (i) Adverse economic impact of closure or realignment on the region 
and potential for economic recovery after an EDC.
    (ii) Extent of short- and long-term job generation.
    (iii) Consistency with overall Redevelopment Plan.
    (iv) Financial feasibility of the development, including market 
analysis and need and extent of proposed infrastructure and other 
investments.
    (v) Extent of state and local investment, level of risk incurred, 
and the LRA's ability to implement the plan.
    (vi) Current local and regional real estate market conditions.
    (vii) Incorporation of other federal agency interests and concerns, 
and applicability of, and conflicts with, other federal surplus property 
disposal authorities.
    (viii) Relationship to the overall Military Department disposal plan 
for the installation.
    (ix) Economic benefit to the federal government, including 
protection and maintenance cost savings and anticipated consideration 
from the transfer.
    (x) Compliance with applicable federal, state, and local laws and 
regulations.
    (8) Before making an EDC, the Military Department must prepare an 
estimate of the present fair market value of the property, which may be 
expressed as a range of values. The Military Department shall consult 
with the LRA on valuation assumptions, guidelines and on instructions 
given to the person(s) making the estimation of value. The Military 
Department is fully responsible for completion of the valuation. The 
Military Department, in preparing the estimate of present fair market 
value shall include, to the extent practicable, the uses identified in 
the local redevelopment plan.
    (f) Consideration for economic development conveyances. (1) For 
conveyances made pursuant to Sec. 175.7(e), Economic development 
conveyances, the Secretary of the Military Department will review the 
application for an EDC and negotiate the terms and conditions of each 
transaction with the LRA. The Military Departments will have the 
discretion and flexibility to enter into agreements that specify the 
form, amount, and payment schedule. The consideration may be at or below 
the estimated present fair market value, with or without initial 
payment, in cash or in-kind and paid over time.
    (2) An EDC must be one of the two following types of agreements:
    (i) Consideration within the estimated range of present fair market 
value, as determined by the Secretary of the Military Department.
    (ii) Consideration below the estimated range of present fair market 
value, when proper justification is provided and when the Secretary of 
the Military Department determines that a discount is necessary for 
economic redevelopment and job creation.
    (3) If the consideration under an EDC is within the range of value 
listed in paragraph (f)(2)(i) of this section, the amount paid in the 
future should take into account the time value of money and include 
repayment of interest. Any transaction that waives or delays interest 
payments will be considered as a transaction below the present fair 
market value under paragraph (f)(2)(ii) of

[[Page 948]]

this section, and as such must be justified as necessary for economic 
development and job creation.
    (4) Additional provisions may be incorporated in the conveyance 
documents to protect the Department's interest in obtaining the agreed 
upon compensation, including such items as predetermined release prices, 
or other appropriate clauses designed to ensure payment and protect 
against fraudulent transactions.
    (5) In a rural area, as defined by this rule, any EDC approved by 
the Secretary of the Military Department shall be made without 
consideration if the base closure will have a substantial adverse impact 
on the economy of the communities in the vicinity of the installation 
and on the prospect for their economic recovery.
    (6) In those instances in which an EDC is made for consideration 
below the range of the estimated present fair market value of the 
property--or if the estimated present fair market value is expressed as 
a range of values, below the lowest value in that range--the Military 
Department shall prepare a written explanation of why the estimated 
present fair market value was not obtained. Additionally, the Military 
Departments must prepare a written statement explaining why other 
federal property transfer authorities could not be used to generate 
economic redevelopment and job creation.
    (g) Leasing of real property. (1) Leasing of real property prior to 
the final disposition of closing and realigning bases may facilitate 
state and local economic adjustment efforts and encourage economic 
redevelopment.
    (2) In addition to leasing property at fair market value, to assist 
local redevelopment efforts the Secretaries of the Military Departments 
may also lease real and personal property located at a military 
installation to be closed or realigned under a base closure law, pending 
final disposition, for less than fair market value if the Secretary 
concerned determines that:
    (i) A public interest will be served as a result of the lease; and
    (ii) The fair market value of the lease is unobtainable, or not 
compatible with such public benefit.
    (3) Pending final disposition of an installation, the Military 
Departments may grant interim leases which are short-term leases that 
make no commitment for future use or ultimate disposal. When granting an 
interim lease, the Military Department will generally lease to the LRA 
but can lease property directly to other entities. If the interim lease 
is entered into prior to completion of the final disposal decisions 
under the National Environmental Policy Act (NEPA) process, the term may 
be for up to five years, including options to renew, and may contain 
restrictions on use. Leasing should not delay the final disposal of the 
property. After completion of the final disposal decisions, the term of 
the lease may be longer than five years.
    (4) If the property is leased for less than fair market value to the 
LRA and the interim lease permits the property to be subleased, the 
interim lease shall provide that rents from the subleases will be 
applied by the lessee to the protection, maintenance, repair, 
improvement and costs related to the property at the installation 
consistent with 10 U.S.C. 2667.
    (h) Personal property. (1) This section outlines procedures to allow 
transfer of personal property to the LRA for the effective 
implementation of a community reuse plan.
    (2) Each Military Department and DoD Component, as appropriate, will 
take an inventory of the personal property, including its condition, 
within 6 months after the date of approval of closure or realignment. 
This inventory will be limited to the personal property located on the 
real property to be disposed of by the Military Department or DoD 
Component. The inventory will be taken in consultation with LRA 
officials. If there is no LRA, the Military Department will offer to 
provide a consultation for the local government in whose jurisdiction 
the installation is wholly located or for a local government agency or a 
state government agency designated for that purpose by the chief 
executive officer of the state. Based on these consultations, the base 
commander will determine the items or category of items that have the 
potential to enhance the reuse of the real property.

[[Page 949]]

    (3) Except for property subject to the exemptions in paragraph 
(h)(5) of this section, personal property with potential to enhance the 
reuse of the real estate shall remain at a base being closed or 
realigned until disposition is otherwise determined by the Military 
Department. This determination will be made no earlier than 90 days 
after the Military Department receives an adopted redevelopment plan or 
when notified by the LRA that there will be no redevelopment plan.
    (4) National Guard property demonstrably identified as being 
purchased with state funds is not available for reuse planning or 
subject to transfer for redevelopment purposes, unless so identified by 
the state property officer. National Guard property purchased with 
federal funds is subject to inventory and may be made available for 
redevelopment planning purposes.
    (5) Personal property may be removed upon approval of the base 
commander or higher authority, within and as prescribed by the Military 
Department, after the inventory required in paragraph (h)(2) of this 
section has been sent to the redevelopment authority, when:
    (i) The property, other than ordinary fixtures, is required for the 
operation of a transferring unit, function, component, weapon, or 
weapons system;
    (ii) The property is required for the operation of a unit, function, 
component, weapon, or weapon system at another installation within the 
Military Department, subject to the following conditions:
    (A) Ordinary fixtures, including but not limited to such items as 
blackboards, sprinklers, lighting fixtures, and electrical and plumbing 
systems, shall not be removed under paragraph (h)(5)(ii) of this 
section; and,
    (B) Other personal property may be removed under paragraph 
(h)(5)(ii) of this section only after the Military Department has 
consulted with the LRA and, with respect to disputed items, upon the 
approval of an Assistant Secretary of the Military Department.
    (iii) The property is uniquely military in character and is likely 
to have no civilian use (other than use for its material content or as a 
source of commonly used components). This property consists of 
classified items; nuclear, biological, chemical items; weapons and 
munitions; museum property or items of significant historic value that 
are maintained or displayed on loan; and similar military items;
    (iv) The property is not required for the reutilization or 
redevelopment of the installation (as jointly determined by the Military 
Department concerned and the redevelopment authority);
    (v) The property is stored at the installation for distribution 
(including spare parts or stock items). This property includes materials 
or parts used in a manufacturing or repair function but does not include 
maintenance spares for equipment to be left in place;
    (vi) The property meets known requirements of an authorized program 
of another federal department or agency that would have to purchase 
similar items, and the property is the subject of a written request 
received from the head of the other Department or Agency. If the 
authority to acquire personal property has been delegated, a copy of the 
delegation must accompany the request. In this context, purchase means 
the federal department or agency intends to obligate funds in the 
current quarter or next six fiscal quarters. The federal department or 
agency must pay packing, crating, handling, and transportation charges 
associated with such transfers of personal property;
    (vii) The property belongs to nonappropriated fund instrumentalities 
(NAFI) and other non-Defense Department activities. Such property may be 
removed at the Military Departments' discretion because it does not 
belong to the Defense Department and, therefore, it may not be 
transferred to the redevelopment authority under this section. For NAFI 
property, separate arrangements for communities to purchase such 
property are possible and may be negotiated with the Military Department 
concerned; and,
    (viii) The property is needed elsewhere in the national security 
interest of the United States as determined by the Secretary of the 
Military Department concerned. This authority may not be redelegated 
below the level of an Assistant Secretary. In exercising this authority, 
the Secretary may transfer

[[Page 950]]

the property to any entity of the Department of Defense or other federal 
agency.
    (6) In addition to the exemptions in paragraph (h)(5) of this 
section, the Military Department or DoD Component is authorized to 
substitute an item similar to one requested by the redevelopment 
authority.
    (7) Personal property not subject to the exemptions in paragraph 
(h)(5) of this section may be conveyed to the redevelopment authority as 
part of an economic development conveyance for the real property if the 
Military Department makes a finding that the personal property is 
necessary for the effective implementation of the redevelopment plan.
    (8) Personal property may also be conveyed separately to the LRA 
under an economic development conveyance for personal property. This 
type of economic development conveyance can be made if the Military 
Department determines that the transfer is necessary for the effective 
implementation of a redevelopment plan with respect to the installation. 
Such determination shall be based on the LRA's timely application for 
the property, which should be submitted to the Military Department upon 
completion of the redevelopment plan. The application must include the 
LRA's agreement to accept the personal property after a reasonable 
period. The transfer will be subject to reasonable limitations and 
conditions on use.
    (i) The Military Department will restrict the LRA's ability to 
acquire personal property at less than fair market value solely for the 
purpose of releasing or reselling it, unless the LRA will lease or sell 
the personal property to entities which will place it into productive 
use in accordance with the redevelopment plan. The LRA must retain 
personal property conveyed under an EDC for less than fair market value 
for at least one year if it is valued at less than $5,000, or at least 
two years if valued at more than $5,000. Any proceeds from such leases 
or sales must be used to pay for protection, maintenance, repair or 
redevelopment of the installation. The LRA will be required to certify 
its compliance with the provisions of this section at the end of each 
fiscal year for no more than two years after transfer. The certification 
may be subject to random audits by the Government.
    (9) Personal property that is not needed by the Military Department 
or a federal agency or conveyed to a redevelopment authority (or a state 
or local jurisdiction in lieu of a local redevelopment authority) will 
be transferred to the Defense Reutilization and Marketing Office for 
processing in accordance with 41 CFR parts 101-43 through 101-45, 
``Federal Property Management Regulations,'' and DoD 4160.21-M.\3\
---------------------------------------------------------------------------

    \3\ Copies may be obtained from the Defense Logistics Agency, Attn: 
DLA-XPD, Alexandria, VA 22304-6100.
---------------------------------------------------------------------------

    (10) Useful personal property determined to be surplus to the needs 
of the federal government by the Defense Reutilization and Marketing 
Office and not qualifying for transfer to the redevelopment authority 
under an economic conveyance may be donated to the community or 
redevelopment authority through the appropriate State Agency for Surplus 
Property (SASP). Personal property donated under this procedure must 
meet the usage and control requirements of the applicable SASP. Property 
subsequently not needed by the community or redevelopment authority 
shall be disposed of as required by its SASP.
    (i) Maintenace, utilities, and services. (1) Facilities and 
equipment located on bases being closed are often important to the 
eventual reuse of the base. This section provides maintenance procedures 
to preserve and protect those facilities and items of equipment needed 
for reuse in an economical manner that facilitates based redevelopment.
    (2) In order to ensure quick reuse, the Military Department, in 
consultation with the LRA, will establish initial levels of maintenance 
and repair needed to aid redevelopment and to protect the property for 
the time periods set forth below. Where agreement between the Military 
Department and the LRA cannot be reached, the Secretary of the Military 
Department will determine the required levels of maintenance and repair 
and its duration. In no case will these initial levels of maintenance:

[[Page 951]]

    (i) Exceed the standard of maintenance and repair in effect on the 
date of closure or realignment approval;
    (ii) Be less than maintenance and repair required to be consistent 
with federal government standards for excess and surplus properties 
(i.e., 41 CFR 101-47.402 and 41 CFR 101-47.4913); or,
    (iii) Require any property improvements, including construction, 
alteration, or demolition, except when the demolition is required for 
health, safety, or environmental purposes, or is economically justified 
in lieu of continued maintenance expenditures.
    (3) The initial levels of maintenance and repair shall be tailored 
to the redevelopment plan, and shall include the following provisions:
    (i) The facilities and equipment that are likely to be utilized in 
the near term will be maintained at levels that shall prevent undue 
deterioration and allow transfer to the LRA.
    (ii) The scheduled closure or realignment date of the installation 
will not be delayed.
    (4) The Military Department will not reduce the agreed upon initial 
maintenance and repair levels unless it establishes a new arrangement 
(e.g., termination of caretaking upon leasing of property) in 
consultation with the LRA.
    (5) The Military Department will determine the length of time it 
will maintain the initial levels of maintenance and repair for each 
closing or realigning base. This determination will be based on factors 
such as the closure/realignment date and the timing of the completion of 
the National Environmental Policy Act (NEPA) documentation on the 
proposed disposal (such as a finding of no significant impact and 
disposal decision following an environmental assessment or the record of 
decision following an environmental impact statement).
    (i) For a base that has not closed prior to the publication of this 
rule, and where the Military Department has completed the NEPA analysis 
on the proposed disposal before the operational closure of that base, 
the time period for the initial levels of maintenance and repair 
normally will extend no longer than one year after operational closure 
of the base.
    (ii) For a base that has not closed prior to the publication of this 
rule, and where the base's operational closure precedes the completion 
of the NEPA analysis on the proposed disposal, the time period for the 
initial levels of maintenance and repair will normally extend no longer 
than one year after operational closure or 180 days after the Secretary 
of the Military Department approves the NEPA analysis.
    (iii) For a based that closed prior to the publication of this rule, 
the time period for the existing levels of maintenance will normally 
extend no longer than one year from the date of the publication of this 
rule or six years after the date of approval of the closure or 
realignment (whichever comes first).
    (6) The Military Department may extend the time period for the 
initial levels of maintenance and repair for property still under its 
control for an additional period, if the Secretary of the Military 
Department determines that the Local Redevelopment Authority is actively 
implementing its redevelopment plan, and such levels of maintenance are 
justified.
    (7) Once the time period for the initial or extended levels of 
maintenance and repair elapses, the Military Department will reduce the 
levels of maintenance and repair to levels consistent with federal 
government standards for excess and surplus properties (i.e., 41 CFR 
101-47.402 and 41 CFR 101-47.4913).
    (j) [Reserved]
    (k) Leaseback of real property at base closure and realignment 
sites. (1) Section 2905(b)(4)(c) of Public Law 101-510, 10 U.S.C. 2687 
note (BRAC 1990), as added by section 2837 of Public Law 104-106, gives 
the Secretary of Defense the authority to transfer real property that is 
still needed by a Federal Department or Agency to an LRA provided the 
LRA agrees to lease the property back to the Federal Department or 
Agency in accordance with all statutory and regulatory guidance. The 
purpose of this authority, hereinafter referred to as a ``leaseback,'' 
is to enable the LRA to obtain ownership of the property pursuant to the 
BRAC process while still ensuring that the Federal need for use of the 
property is accommodated.

[[Page 952]]

    (2) Subject to BRAC 1990 and this part, the decision whether to 
transfer property pursuant to a leaseback rests with the relevant 
military department. However, a military department may only transfer 
property via a leaseback if the Federal entity that needs the property 
agrees to the leaseback arrangement.
    (3) If for any reason property cannot be transferred pursuant to a 
leaseback (e.g., the relevant Federal Agency prefers ownership, the LRA 
and the Federal entity cannot agree on terms of the lease, or the 
military department determines that a leaseback would not be in the 
Federal interest), such property shall remain in Federal ownership 
unless and until the relevant landholding entity determines that it is 
surplus pursuant to the Federal Property Management Regulations.
    (4) If a building or structure is proposed for transfer under this 
authority, that which is leased back to the Federal Department or Agency 
may be all or a portion of that building or structure.
    (5) The leaseback authority may be used at all installations 
approved for closure or realignment under BRAC 1990.
    (6) Transfers under this authority must be to an LRA.
    (7) Transfers under this authority may be by lease in furtherance of 
conveyance or deed. A lease in furtherance of conveyance is appropriate 
only in those circumstances where deed transfer cannot be accomplished 
because the requirements of the Comprehensive Environmental Response, 
Compensation, and Liability Act (CERCLA) (42 U.S.C. 9601, et seq.) for 
such transfer have not been met. The lease in furtherance of conveyance 
or accompanying contract shall include a provision stating that the LRA 
agrees to take title to the property when requirements for the transfer 
have been satisfied.
    (8) The leaseback authority can be used to transfer property that is 
needed either by existing Federal tenants or by Federal Departments or 
Agencies desiring to locate onto the property after operational closure. 
The Military Department that is closing or realigning the installation 
may not transfer property to an LRA under this authority and lease it 
back unless:
    (i) The Military Department is acting in an Executive Agent capacity 
on behalf of a Defense Agency that certifies that a leaseback is in the 
interest of that Defense Agency; or,
    (ii) The Secretary of the Military Department certifies that a 
leaseback is in the best interest of the Military Department and that 
use of the property by the Military Department is consistent with the 
obligation to close or realign the installation in accordance with the 
recommendations of the Defense Base Closure and Realignment Commission.
    (9) Property eligible for a leaseback is not surplus because it is 
still needed by a Federal entity. However, notwithstanding that the 
property is not surplus and that the LRA would not otherwise have to 
include such property in its redevelopment plan, the LRA should include 
the proposed leaseback of property in its redevelopment plan, taking 
into account the planned Federal use of such property.
    (10) The terms of the LRA's lease to the Federal entity should 
afford the Federal Department or Agency rights as close to those 
associated with ownership of the property as is practicable. The 
requirements of the General Services Acquisition Regulation (GSAR) (48 
CFR Part 570) are not applicable to the lease, but provisions in the 
GSAR may be used to the extent they are consistent with this part. The 
terms of the lease are negotiable subject to the following:
    (i) The lease shall be for a term of no more than 50 years, but may 
provide for options for renewal or extension of the term at the request 
of the Federal Department or Agency concerned. The lease term should be 
based on the needs of the Federal entity.
    (ii) The lease, or any renewals or extensions thereof, shall not 
require rental payments.
    (iii) The lease shall not require the Federal Government to pay the 
LRA or other local government entity for municipal services including 
fire and police protection.
    (iv) The Federal Department or Agency concerned may be responsible 
for services such as janitorial, grounds

[[Page 953]]

keeping, utilities, capital maintenance, and other services normally 
provided by a landlord. Acquisition of such services by the Federal 
Department or Agency is to be accomplished through the use of Federal 
Acquisition Regulation procedures or otherwise in accordance with 
applicable statutory and regulatory requirements.
    (v) The lease shall include a provision prohibiting the LRA from 
transferring fee title to another entity during the term of the lease, 
other than one of the political jurisdictions that comprise the LRA, 
without the written consent of the Federal Department or Agency 
occupying the leaseback property.
    (vi) The lease shall include a provision specifying that if the 
Federal Department or Agency concerned no longer needs the property 
before the expiration of the term of the lease, the remainder of the 
lease term may be satisfied by the same or another Federal Department or 
Agency that needs property for a similar use.
    (A) Prior to exercising this option, the Federal tenant shall 
consult with the LRA concerned or other property owner if the property 
has been conveyed by the LRA to another entity in accordance with 
Sec. 175.7(k)(10)(v) of this part.
    (B) If the Federal tenant decides to exercise this option after 
consulting with the LRA or other property owner, it shall notify the 
appropriate General Services Administration regional office that the 
property is available for use by a Federal Department or Agency. The 
General Services Administration regional office shall have 60 days from 
the date of notification in which to identify a Federal Department or 
Agency to serve out the term of the lease and to notify the LRA or other 
property owner of the new tenant. If the regional office does not notify 
the LRA or other property owner of a new tenant within 60 days from the 
date of notification, the property is available for use by the LRA or 
other property owner.
    (C) If the Federal tenant decides not to exercise this option after 
consulting with the LRA or other property owner, the property is 
available for use by the LRA or other property owner.
    (vii) The terms of the lease shall provide that the Federal 
Department or Agency may repair and improve the property at its expense 
after consultation with the LRA.
    (11) Conveyance to an LRA under this authority shall be in one of 
the following ways:
    (i) Lease back property that will be conveyed under an Economic 
Development Conveyance (EDC) shall be conveyed as part of the EDC in 
accordance with the existing EDC procedures and 
Sec. 175.7(k)(11)(ii)(B)(4). The LRA shall submit the following in 
addition to the application requirements outlined in Sec. 175.7(e)(5):
    (A) A description of the parcel or parcels the LRA proposes to have 
transferred to it and then to lease back to a Federal Department or 
Agency;
    (B) A written statement signed by an authorized representative of 
the Federal entity that it agrees to accept a leaseback of the property; 
and,
    (C) A statement explaining why a leaseback is necessary for the 
long-term economic redevelopment of the installation property.
    (ii) Leaseback property not associated with property to be conveyed 
under an EDC shall be conveyed in accordance with the following 
procedures:
    (A) As soon as possible after the LRA's submission of its 
redevelopment plan to the DoD and HUD, the LRA shall submit a request 
for a leaseback to the Military department. The Military Department may 
impose additional requirements as necessary, but at a minimum, the 
request shall contain the following:
    (1) A description of the parcel or parcels the LRA proposes to have 
transferred to it and then to lease back to a Federal Department or 
Agency;
    (2) A written statement signed by an authorized representative of 
the Federal entity that it agrees to accept a leaseback of the property; 
and,
    (3) A statement explaining why a leaseback is necessary for the 
long-term economic redevelopment of the installation property.
    (B) The transfer may be for consideration at or below the estimated 
present fair market value. In those instances in

[[Page 954]]

which the property is conveyed for consideration below the estimated 
present fair market value, the Military Department shall prepare a 
written explanation of why the estimated present fair market value was 
not obtained.
    (1) In a rural area, the transfer shall comply with 
Sec. 175.7(f)(5).
    (2) Payment may be in cash or in-kind.
    (3) The Military Department shall determine the estimated present 
fair market value of the property before transfer under this authority.
    (4) The exact amount of consideration, or the formula to be used to 
determine that consideration, as well as the schedule for payment of 
consideration must be agreed upon in writing before transfer under this 
authority.
[60 FR 37341, July 20, 1995. Redesignated and amended at 61 FR 54097, 
54098, Oct. 17, 1996; 62 FR 66525, Dec. 19, 1997]



PART 176--REVITALIZING BASE CLOSURE COMMUNITIES AND COMMUNITY ASSISTANCE--COMMUNITY REDEVELOPMENT AND HOMELESS ASSISTANCE--Table of Contents




Sec.
176.1  Purpose.
176.5  Definitions.
176.10  Applicabiity.
176.15  Waivers and extensions of deadlines.
176.20  Overview of the process.
176.25  HUD's negotiations and consultations with the LRA.
176.30  LRA application.
176.35  HUD's review of the application.
176.40  Adverse determinations.
176.45  Disposal of buildings and property.

    Authority: 10 U.S.C. 2687 note.

    Source: 62 FR 35346, July 1, 1997, unless otherwise noted.



Sec. 176.1  Purpose.

    This part implements the Base Closure Community Redevelopment and 
Homeless Assistance Act, as amended (10 U.S.C. 2687 note), which 
instituted a new community-based process for addressing the needs of the 
homeless at base closure and realignment sites. In this process, Local 
Redevelopment Authorities (LRAs) identify interest from homeless 
providers in installation property and develop a redevelopment plan for 
the installation that balances the economic redevelopment and other 
development needs of the communities in the vicinity of the installation 
with the needs of the homeless in those communities. The Department of 
Housing and Urban Development (HUD) reviews the LRA's plan to see that 
an appropriate balance is achieved. This part also implements the 
process for identifying interest from State and local entities for 
property under a public benefit transfer. The LRA is responsible for 
concurrently identifying interest from homeless providers and State and 
local entities interested in property under a public benefit transfer.



Sec. 176.5  Definitions.

    As used in this part:
    CERCLA. Comprehensive Environmental Response, Compensation, and 
Liability Act (42 U.S.C. 9601 et seq.).
    Communities in the vicinity of the installation. The communities 
that constitute the political jurisdictions (other than the State in 
which the installation is located) that comprise the LRA for the 
installation. If no LRA is formed at the local level, and the State is 
serving in that capacity, the communities in the vicinity of the 
installation are deemed to be those political jurisdiction(s) (other 
than the State) in which the installation is located.
    Continuum of care system.
    (1) A comprehensive homeless assistance system that includes:
    (i) A system of outreach and assessment for determining the needs 
and condition of an individual or family who is homeless, or whether 
assistance is necessary to prevent an individual or family from becoming 
homeless;
    (ii) Emergency shelters with appropriate supportive services to help 
ensure that homeless individuals and families receive adequate emergency 
shelter and referral to necessary service providers or housing finders;
    (iii) Transitional housing with appropriate supportive services to 
help those homeless individuals and families who are not prepared to 
make the transition to independent living;
    (iv) Housing with or without supportive services that has no 
established limitation on the amount of time of residence to help meet 
long-term needs

[[Page 955]]

of homeless individuals and families; and,
    (v) Any other activity that clearly meets an identified need of the 
homeless and fills a gap in the continuum of care.
    (2) Supportive services are services that enable homeless persons 
and families to move through the continuum of care toward independent 
living. These services include, but are not limited to, case management, 
housing counseling, job training and placement, primary health care, 
mental health services, substance abuse treatment, child care, 
transportation, emergency food and clothing family violence services, 
education services, moving services, assistance in obtaining 
entitlements, and referral to veterans services and legal services.
    Consolidated Plan. The plan prepared in accordance with the 
requirements of 24 CFR part 91.
    Day. One calendar day including weekends and holidays.
    DoD. Department of Defense.
    HHS. Department of Health and Human Services.
    Homeless person.
    (1) An individual or family who lacks a fixed, regular, and adequate 
nighttime residence; and
    (2) An individual or family who has a primary nighttime residence 
that is:
    (i) A supervised publicly or privately operated shelter designed to 
provide temporary living accommodations (including welfare hotels, 
congregate shelters and transitional housing for the mentally ill);
    (ii) An institution that provides a temporary residence for 
individuals intended to be institutionalized; or,
    (iii) A public or private place not designed for, or ordinarily used 
as, a regular sleeping accommodation for human beings.
    (3) This term does not include any individual imprisoned or 
otherwise detained under an Act of the Congress or a State law.
    HUD. Department of Housing and Urban Development.
    Installation. A base, camp, post, station, yard, center, homeport 
facility for any ship or other activity under the jurisdiction of DoD, 
including any leased facility, that is approved for closure or 
realignment under the Base Closure and Realignment Act of 1988 (Pub. L. 
100-526). as amended, or the Defense Base Closure and Realignment Act of 
1990 (Pub. L. 101-510), as amended (both at 10 U.S.C. 2687, note).
    Local redevelopment authority (LRA). Any authority or 
instrumentality established by State or local government and recognized 
by the Secretary of Defense, through the Office of Economic Adjustment, 
as the entity responsible for developing the redevelopment plan with 
respect to the installation or for directing implementation of the plan.
    NEPA. National Environmental Policy Act of 1969 (42 U.S.C. 4320).
    OEA. Office of Economic Adjustment, Department of Defense.
    Private nonprofit organization. An organization, no part of the net 
earnings of which inures to the benefit of any member, founder, 
contributor, or individual; that has a voluntary board; that has an 
accounting system or has designated an entity that will maintain a 
functioning accounting system for the organization in accordance with 
generally accepted accounting procedures; and that practices 
nondiscrimination in the provision of assistance.
    Public benefit transfer. The transfer of surplus military property 
for a specified public purpose at up to a 100-percent discount in 
accordance with 40 U.S.C. 471 et seq. or 49 U.S.C. 47151-47153.
    Redevelopment plan. A plan that is agreed by the LRA with respect to 
the installation and provides for the reuse or redevelopment of the real 
property and personal property of the installation that is available for 
such reuse and redevelopment as a result of the closure of the 
installation.
    Representative(s) of the homeless. A State or local government 
agency or private nonprofit organization, including a homeless 
assistance planning board, that provides or proposes to provide services 
to the homeless.
    Substantially equivalent. Property that is functionally suitable to 
substitute for property referred to in an approved Title V application. 
For example, if the representative of the

[[Page 956]]

homeless had an approved Title V application for a building that would 
accommodate 100 homeless persons in an emergency shelter, the 
replacement facility would also have to accommodate 100 at a comparable 
cost for renovation.
    Substantially equivalent funding. Sufficient funding to acquire a 
substantially equivalent facility.
    Surplus property. Any excess property not required for the needs and 
the discharge of the responsibilities of all Federal Agencies. Authority 
to make this determination, after screening with all Federal Agencies, 
rests with the Military Departments.
    Title V. Title V of the Steward B. McKinney Homeless Assistance Act 
of 1987 (42 U.S.C. 11411) as amended by the National Defense 
Authorization Act for Fiscal Year 1994 (Pub. L. 103-160).
    Urban county. A county within a metropolitan area as defined at 24 
CFR 570.3.



Sec. 176.10  Applicability.

    (a) General. This part applies to all installations that are 
approved for closure/realignment by the President and Congress under 
Pub. L. 101-510 after October 25, 1994.
    (b) Request for inclusion under this process. This part also applies 
to installations that were approved for closure/realignment under either 
Public Law 100-526 or Public Law 101-510 prior to October 25, 1994 and 
for which an LRA submitted a request for inclusion under this part to 
DoD by December 24, 1994. A list of such requests was published in the 
Federal Register on May 30, 1995 (60 FR 28089).
    (1) For installations with Title V applications pending but not 
approved before October 25, 1994, the LRA shall consider and 
specifically address any application for use of buildings and property 
to assist the homeless that were received by HHS prior to October 25, 
1994, and were spending with the Secretary of HHS on that date. These 
pending requests shall be addressed in the LRA's homeless assistance 
submission.
    (2) For installations with Title V applications approved before 
October 25, 1994 where there is an approved Title V application, but 
property has not been assigned or otherwise disposed of by the Military 
Department, the LRA must ensure that its homeless assistance submission 
provides the Title V applicant with:
    (i) The property requested;
    (ii) Properties, on or off the installation, that are substantially 
equivalent to those requested;
    (iii) Sufficient funding to acquire such substantially equivalent 
properties;
    (iv) Services and activities that meet the needs identified in the 
application; or,
    (v) A combination of the properties, funding, and services and 
activities described in Sec. 176.10(b)(2)(i)-(iv) of this part.
    (c) Revised Title V process. All other installations approved for 
closure or realignment under either Public Law 100-526 or Public Law 
101-510 prior to October 25, 1994, for which there was no request for 
consideration under this part, are covered by the process stipulated 
under Title V. Buildings or property that were transferred or leased for 
homeless use under Title V prior to October 25, 1994, may not be 
reconsidered under this part.



Sec. 176.15  Waivers and extensions of deadlines.

    (a) After consultation with the LRA and HUD, and upon a finding that 
it is in the interest of the communities affected by the closure/
realignment of the installation, DoD, through the Director of the Office 
of Economic Adjustment, may extend or postpone any deadline contained in 
this part.
    (b) Upon completion of a determination and finding of good cause, 
and except for deadlines and actions required on the part of DoD, HUD 
may waive any provision of Secs. 176.20 through 176.45 of this part in 
any particular case, subject only to statutory limitations.



Sec. 176.20  Overview of the process.

    (a) Recognition of the LRA. As soon as practicable after the list of 
installations recommended for closure or realignment is approved, DoD, 
through OEA, will recognize an LRA for the installation. Upon 
recognition, OEA shall publish the name, address, and point of contact 
for the LRA in the Federal

[[Page 957]]

Register and in a newspaper of general circulation in the communities in 
the vicinity of the installation.
    (b) Responsibilities of the Military Department. The Military 
Department shall make installation properties available to other DoD 
components and Federal agencies in accordance with the procedures set 
out at 32 CFR part 175. The Military Department will keep the LRA 
informed of other Federal interest in the property during this process. 
Upon completion of this process the Military Department will notify HUD 
and either the LRA or the Chief Executive Officer of the State, as 
appropriate, and publish a list of surplus property on the installation 
that will be available for reuse in the Federal Register and a newspaper 
of general circulation in the communities in the vicinity of the 
installation.
    (c) Responsibilities of the LRA. The LRA should begin to conduct 
outreach efforts with respect to the installation as soon as is 
practicable after the date of approval of closure/realignment of the 
installation. The local reuse planning process must begin no later than 
the date of the Military Department's Federal Register publication of 
available property described at Sec. 176.20(b). For those installations 
that began the process described in this part prior to August 17, 1995, 
HUD will, on a case-by-case basis, determine whether the statutory 
requirements have been fulfilled and whether any additional requirements 
listed in this part should be required. Upon the Federal Register 
publication described in Sec. 176.20(b), the LRA shall:
    (1) Publish, within 30 days, in a newspaper of general circulation 
in the communities in the vicinity of the installation, the time period 
during which the LRA will receive notices of interest from State and 
local governments, representatives of the homeless, and other interested 
parties. This publication shall include the name, address, telephone 
number and the point of contact for the LRA who can provide information 
on the prescribed form and contents of the notices of interest. The LRA 
shall notify DoD of the deadline specified for receipt of notices of 
interest. LRAs are strongly encouraged to make this publication as soon 
as possible within the permissible 30 day period in order to expedite 
the closure process.
    (i) In addition, the LRA has the option to conduct an informal 
solicitation of notices of interest from public and non-profit entities 
interested in obtaining property via a public benefit transfer other 
than a homeless assistance conveyance under either 40 U.S.C. 471 et. 
seq. or 49 U.S.C. 47151-47153. As part of such a solicitation, the LRA 
may wish to request that interested entities submit a description of the 
proposed use to the LRA and the sponsoring Federal agency.
    (ii) For all installations selected for closure or realignment prior 
to 1995 that elected to proceed under Public Law 103-421, the LRA shall 
accept notices of interest for not less than 30 days.
    (iii) For installations selected for closure or realignment in 1995 
or thereafter, notices of interest shall be accepted for a minimum of 90 
days and not more than 180 days after the LRA's publication under 
Sec. 176.20(c)(1).
    (2) Prescribe the form and contents of notices of interest.
    (i) The LRA may not release to the public any information regarding 
the capacity of the representative of the homeless to carry out its 
program, a description of the organization, or its financial plan for 
implementing the program, without the consent of the representative of 
the homeless concerned, unless such release is authorized under Federal 
law and under the law of the State and communities in which the 
installation concerned is located. The identity of the representative of 
the homeless may be disclosed.
    (ii) The notices of interest from representatives of the homeless 
must include:
    (A) A description of the homeless assistance program proposed, 
including the purposes to which the property or facility will be put, 
which may include uses such as supportive services, job and skills 
training, employment programs, shelters, transitional housing or housing 
with no established limitation on the amount of time of residence, food 
and clothing banks, treatment facilities, or any other activity which 
clearly meets an identified need

[[Page 958]]

of the homeless and fills a gap in the continuum of care;
    (B) A description of the need for the program;
    (C) A description of the extent to which the program is or will be 
coordinated with other homeless assistance programs in the communities 
in the vicinity of the installation;
    (D) Information about the physical requirements necessary to carry 
out the program including a description of the buildings and property at 
the installation that are necessary to carry out the program;
    (E) A description of the financial plan, the organization, and the 
organizational capacity of the representative of the homeless to carry 
out the program; and,
    (F) An assessment of the time required to start carrying out the 
program.
    (iii) The notices of interest from entities other than 
representatives of the homeless should specify the name of the entity 
and specific interest in property or facilities along with a description 
of the planned use.
    (3) In addition to the notice required under Sec. 176.20(c)(1), 
undertake outreach efforts to representatives of the homeless by 
contacting local government officials and other persons or entities that 
may be interested in assisting the homeless within the vicinity of the 
installation.
    (i) The LRA may invite persons and organizations identified on the 
HUD list of representatives of the homeless and any other 
representatives of the homeless with which the LRA is familiar, 
operating in the vicinity of the installation, to the workshop described 
in Sec. 176.20(c)(3)(ii).
    (ii) The LRA, in coordination with the Military Department and HUD, 
shall conduct at least one workshop where representatives of the 
homeless have an opportunity to:
    (A) Learn about the closure/realignment and disposal process;
    (B) Tour the buildings and properties available either on or off the 
installation;
    (C) Learn about the LRA's process and schedule for receiving notices 
of interest as guided by Sec. 176.20(c)(2); and,
    (D) Learn about any known land use constraints affecting the 
available property and buildings.
    (iii) The LRA should meet with representatives of the homeless that 
express interest in discussing possible uses for these properties to 
alleviate gaps in the continuum of care.
    (4) Consider various properties in response to the notices of 
interest. The LRA may consider property that is located off the 
installation.
    (5) Develop an application, including the redevelopment plan and 
homeless assistance submission, explaining how the LRA proposes to 
address the needs of the homeless. This application shall consider the 
notices of interest received from State and local governments, 
representatives of the homeless, and other interested parties. This 
shall include, but not be limited to, entities eligible for public 
benefit transfers under either 40 U.S.C. 471 et. seq., or 49 U.S.C. 
47151-47153; representatives of the homeless; commercial, industrial, 
and residential development interests; and other interests. From the 
deadline date for receipt of notices of interest described at 
Sec. 176.20(c)(1), the LRA shall have 270 days to complete and submit 
the LRA application to the appropriate Military Department and HUD. The 
application requirements are described at Sec. 176.30.
    (6) Make the draft application available to the public for review 
and comment periodically during the process of developing the 
application. The LRA must conduct at least one public hearing on the 
application prior to its submission to HUD and the appropriate Military 
Department. A summary of the public comments received during the process 
of developing the application shall be included in the application when 
it is submitted.
    (d) Public benefit transfer screening. The LRA should, while 
conducting its outreach efforts, work with the Federal agencies that 
sponsor public benefit transfers under either 40 U.S.C. 471 et. seq. or 
49 U.S.C. 47151-47153. Those agencies can provide a list of parties in 
the vicinity of the installation that might be interested in and 
eligible for public benefit transfers. The LRA should make a reasonable 
effort to inform such parties of the availability of

[[Page 959]]

the property and incorporate their interests within the planning 
process. Actual recipients of property are to be determined by 
sponsoring Federal agency. The Military Departments shall notify 
sponsoring Federal agencies about property that is available based on 
the community redevelopment plan and keep the LRA apprised of any 
expressions of interest. Such expressions of interest are not required 
to be incorporated into the redevelopment plan, but must be considered.



Sec. 176.25  HUD's negotiations and consultations with the LRA.

    HUD may negotiate and consult with the LRA before and during the 
course of preparation of the LRA's application and during HUD's review 
thereof with a view toward avoiding any preliminary determination that 
the application does not meet any requirement of this part. LRAs are 
encouraged to contact HUD for a list of persons and organizations that 
are representatives of the homeless operating in the vicinity of the 
installation.



Sec. 176.30  LRA application.

    (a) Redevelopment plan. A copy of the redevelopment plan shall be 
part of the application.
    (b) Homeless assistance submission. This component of the 
application shall include the following:
    (1) Information about homelessness in the communities in the 
vicinity of the installation.
    (i) A list of all the political jurisdictions which comprise the 
LRA.
    (ii) A description of the unmet need in the continuum of care system 
within each political jurisdiction, which should include information 
about any gaps that exist in the continuum of care for particular 
homeless subpopulations. The source for this information shall depend 
upon the size and nature of the political jurisdictions(s) that comprise 
the LRA. LRAs representing:
    (A) Political jurisdictions that are required to submit a 
Consolidated Plan shall include a copy of their Homeless and Special 
Needs Population Table (Table 1), Priority Homeless Needs Assessment 
Table (Table 2), and narrative description thereof from that 
Consolidated Plan, including the inventory of facilities and services 
that assist the homeless in the jurisdiction.
    (B) Political jurisdictions that are part of an urban county that is 
required to submit a Consolidated Plan shall include a copy of their 
Homeless and Special Needs Population Table (Table 1), Priority Homeless 
Needs Assessment Table (Table 2), and narrative description thereof from 
that Consolidated Plan, including the inventory of facilities and 
services that assist the homeless in the jurisdiction. In addition, the 
LRA shall explain what portion of the homeless population and 
subpopulations described in the Consolidated Plan are attributable to 
the political jurisdiction it represents.
    (C) A political jurisdiction not described by 
Sec. 176.30(b)(1)(ii)(A) or Sec. 176.30(b)(1)(ii)(B) shall submit a 
narrative description of what it perceives to be the homeless population 
within the jurisdiction and a brief inventory of the facilities and 
services that assist homeless persons and families within the 
jurisdiction. LRAs that represent these jurisdictions are not required 
to conduct surveys of the homeless population.
    (2) Notices of interest proposing assistance to homeless persons 
and/or families.
    (i) A description of the proposed activities to be carried out on or 
off the installation and a discussion of how these activities meet a 
portion or all of the needs of the homeless by addressing the gaps in 
the continuum of care. The activities need not be limited to expressions 
of interest in property, but may also include discussions of how 
economic redevelopment may benefit the homeless;
    (ii) A copy of each notice of interest from representatives of the 
homeless for use of buildings and property and a description of the 
manner in which the LRA's application addresses the need expressed in 
each notice of interest. If the LRA determines that a particular notice 
of interest should not be awarded property, an explanation of why the 
LRA determined not to support that notice of interest, the reasons for 
which may include the impact of the program contained in the notice of 
interest on the community as described in Sec. 176.30(b)(2)(iii); and,

[[Page 960]]

    (iii) A description of the impact that the implemented redevelopment 
plan will have on the community. This shall include information on how 
the LRA's redevelopment plan might impact the character of existing 
neighborhoods adjacent to the properties proposed to be used to assist 
the homeless and should discuss alternative plans. Impact on schools, 
social services, transportation, infrastructure, and concentration of 
minorities and/or low income persons shall also be discussed.
    (3) Legally binding agreements for buildings, property, funding, 
and/or services.
    (i) A copy of the legally binding agreements that the LRA proposes 
to enter into with the representative(s) of the homeless selected by the 
LRA to implement homeless programs that fill gaps in the existing 
continuum of care. The legally binding agreements shall provide for a 
process for negotiating alternative arrangements in the event that an 
environmental analysis conducted under Sec. 176.45(b) indicates that any 
property identified for transfer in the agreement is not suitable for 
the intended purpose. Where the balance determined in accordance with 
Sec. 176.30(b)(4) provides for the use of installation property as a 
homeless assistance facility, legally binding agreements must provide 
for the reversion or transfer, either to the LRA or to another entity or 
entities, of the buildings and property in the event they cease to be 
used for the homeless. In cases where the balance proposed by the LRA 
does not include the use of buildings or property on the installation, 
the legally binding agreements need not be tied to the use of specific 
real property and need not include a reverter clause. Legally binding 
agreements shall be accompanied by a legal opinion of the chief legal 
advisor of the LRA or political jurisdiction or jurisdictions which will 
be executing the legally binding agreements that the legally binding 
agreements, when executed, will constitute legal, valid, binding, and 
enforceable obligations on the parties thereto;
    (ii) A description of how buildings, property, funding, and/or 
services either on or off the installation will be used to fill some of 
the gaps in the current continuum of care system and an explanation of 
the suitability of the buildings and property for that use; and,
    (iii) Information on the availability of general services such as 
transportation, police, and fire protection, and a discussion of 
infrastructure such as water, sewer, and electricity in the vicinity of 
the proposed homeless activity at the installation.
    (4) An assessment of the balance with economic and other development 
needs.
    (i) An assessment of the manner in which the application balances 
the expressed needs of the homeless and the needs of the communities 
comprising the LRA for economic redevelopment and other development; and
    (ii) An explanation of how the LRA's application is consistent with 
the appropriate Consolidated Plan(s) or any other existing housing, 
social service, community, economic, or other development plans adopted 
by the jurisdictions in the vicinity of the installation.
    (5) A description of the outreach undertaken by the LRA. The LRA 
shall explain how the outreach requirements described at 
Sec. 176.20(c)(1) and Sec. 176.20(c)(3) have been fulfilled. This 
explanation shall include a list of the representatives of the homeless 
the LRA contacted during the outreach process.
    (c) Public comments. The LRA application shall include the materials 
described at Sec. 176.20(c)(6). These materials shall be prefaced with 
an overview of the citizen participation process observed in preparing 
the application.



Sec. 176.35  HUD's review of the application.

    (a) Timing. HUD shall complete a review of each application no later 
than 60 days after its receipt of a completed application.
    (b) Standards of review. The purpose of the review is to determine 
whether the application is complete and, with respect to the expressed 
interest and requests of representatives of the homeless, whether the 
application:
    (1) Need. Takes into consideration the size and nature of the 
homeless population in the communities in the vicinity of the 
installation, the availability

[[Page 961]]

of existing services in such communities to meet the needs of the 
homeless in such communities, and the suitability of the buildings and 
property covered by the application for use and needs of the homeless in 
such communities. HUD will take into consideration the size and nature 
of the installation in reviewing the needs of the homeless population in 
the communities in the vicinity of the installation.
    (2) Impact of notices of interest. Takes into consideration any 
economic impact of the homeless assistance under the plan on the 
communities in the vicinity of the installation, including:
    (i) Whether the plan is feasible in light of demands that would be 
placed on available social services, police and fire protection, and 
infrastructure in the community; and,
    (ii) Whether the selected notices of interest are consistent with 
the Consolidated Plan(s) of any other existing housing, social service, 
community economic, or other development plans adopted by the political 
jurisdictions in the vicinity of the installation.
    (3) Legally binding agreements. Specifies the manner in which the 
buildings, property, funding, and/or services on or off the installation 
will be made available for homeless assistance purposes. HUD will review 
each legally binding agreement to verify that:
    (i) They include all the documents legally required to complete the 
transactions necessary to realize the homeless use(s) described in the 
application;
    (ii) They include all appropriate terms and conditions;
    (iii) They address the full range of contingencies including those 
described at Sec. 176.30(b)(3)(i);
    (iv) They stipulate that the buildings, property, funding, and/or 
services will be made available to the representatives of the homeless 
in a timely fashion; and,
    (v) They are accompanied by a legal opinion of the chief legal 
advisor of the LRA or political jurisdiction or jurisdictions which will 
be executing the legally binding agreements that the legally binding 
agreements will, when executed, constitute legal, valid, binding, and 
enforceable obligations on the parties thereto.
    (4) Balance. Balances in an appropriate manner a portion or all of 
the needs of the communities in the vicinity or the installation for 
economic redevelopment and other development with the needs of the 
homeless in such communities.
    (5) Outreach. Was developed in consultation with representatives of 
the homeless and the homeless assistance planning boards, if any, in the 
communities in the vicinity of the installation and whether the outreach 
requirements described at Sec. 176.20(c)(1) and Sec. 176.20(c)(3) have 
been fulfilled by the LRA.
    (c) Notice of determination. (1) HUD shall, no later than the 60th 
day after its receipt of the application, unless such deadline is 
extended pursuant to Sec. 176.15(a), send written notification both to 
DoD and the LRA of its preliminary determination that the application 
meets or fails to meet the requirements of Sec. 176.35(b). If the 
application fails to meet the requirements, HUD will send the LRA:
    (i) A summary of the deficiencies in the application;
    (ii) An explanation of the determination; and,
    (iii) A statement of how the LRA must address the determinations.
    (2) In the event that no application is submitted and no extension 
is requested as of the deadline specified in Sec. 176.20(c)(5), and the 
State does not accept within 30 days a DoD written request to become 
recognized as the LRA, the absence of such application will trigger an 
adverse determination by HUD effective on the date of the lapsed 
deadline. Under these conditions, HUD will follow the process described 
at Sec. 176.40.
    (d) Opportunity to cure. (1) The LRA shall have 90 days from its 
receipt of the notice of preliminary determination under 
Sec. 176.35(c)(1) within which to submit to HUD and DoD a revised 
application which addresses the determinations listed in the notice. 
Failure to submit a revised application shall result in a final 
determination, effective 90 days from the LRA's receipt of the 
preliminary determination, that

[[Page 962]]

the redevelopment plan fails to meet the requirements of Sec. 176.35(b).
    (2) HUD shall, within 30 days of its receipt of the LRA's 
resubmission send written notification of its final determination of 
whether the application meets the requirements of Sec. 176.35(b) to both 
DOD and the LRA.



Sec. 176.40  Adverse determinations.

    (a) Review and consultation. If the resubmission fails to meet the 
requirements of Sec. 176.35(b) or if no resubmission is received, HUD 
will review the original application, including the notices of interest 
submitted by representatives of the homeless. In addition, in such 
instances or when no original application has been submitted, HUD:
    (1) Shall consult with the representatives of the homeless, if any, 
for purposes of evaluation the continuing interest of such 
representatives in the use of buildings or property at the installation 
to assist the homeless;
    (2) May consult with the applicable Military Department regarding 
the suitability of the buildings and property at the installation for 
use to assist the homeless; and,
    (3) May consult with representatives of the homeless and other 
parties as necessary.
    (b) Notice of decision. (1) Within 90 days of receipt of an LRA's 
revised application which HUD determines does not meet the requirements 
of Sec. 176.35(b), HUD shall, based upon its reviews and consultations 
under Sec. 176.40(a):
    (i) Notify DoD and the LRA of the buildings and property at the 
installation that HUD determines are suitable for use to assist the 
homeless, and;
    (ii) Notify DoD and the LRA of the extent to which the revised 
redevelopment plan meets the criteria set forth in Sec. 176.35(b).
    (2) In the event that an LRA does not submit a revised redevelopment 
plan under Sec. 176.35(d), HUD shall, based upon its reviews and 
consultations under Sec. 176.40(a), notify DoD and the LRA of the 
buildings and property at the installation that HUD determines are 
suitable for use to assist the homeless, either
    (i) Within 190 days after HUD sends its notice of preliminary 
adverse determination under Sec. 176.35(c)(1), if an LRA has not 
submitted a revised redevelopment plan; or
    (ii) Within 390 days after the Military Department's Federal 
Register publication of available property under Sec. 176.20(b), if no 
redevelopment plan has been received and no extension has been approved.



Sec. 176.45  Disposal of buildings and property.

    (a) Puglic benefit transfer screening. Not later than the LRA's 
submission of its redevelopment plan to DoD and HUD, the Military 
Development will conduct an official public benefit transfer screening 
in accordance with the Federal Property Management Regulations (41 CFR 
101-47.303-2) based upon the uses identified in the redevelopment plan. 
Federal sponsoring agencies shall notify eligible applicants that any 
request for property must be consistent with the uses identified in the 
redevelopment plan. At the request of the LRA, the Military Department 
may conduct the official State and local public benefit screening at any 
time after the publication of available property described at 
Sec. 176.20(b).
    (b) Environmental analysis. Prior to disposal of any real property, 
the Military Department shall, consistent with NEPA and section 2905 of 
the Defense Base Closure and Realignment Act of 1990, as amended (10 
U.S.C. 2687 note), complete an environmental impact analysis of all 
reasonable disposal alternatives. The Military Department shall consult 
with the LRA throughout the environmental impact analysis process to 
ensure both that the LRA is provided the most current environmental 
information available concerning the installation, and that the Military 
Department receives the most current information available concerning 
the LRA's redevelopment plans for the installation.
    (c) Disposal. Upon receipt of a notice of approval of an application 
from HUD under Sec. 176.35(c)(1) or Sec. 176.35(d)(2), DoD shall dispose 
of buildings and property in accordance with the record of decision or 
other decision document prepared under Sec. 176.45(b). Disposal of

[[Page 963]]

buildings and property to be used as homeless assistance facilities 
shall be to either the LRA or directly to the representative(s) of the 
homeless and shall be without consideration. Upon receipt of a notice 
from HUD under Sec. 176.40(b), DoD will dispose of the buildings and 
property at the installation in consultation with HUD and the LRA.
    (d) LRA's responsibility. The LRA shall be responsible for the 
implementation of and compliance with legally binding agreements under 
the application.
    (e) Reversions to the LRA. If a building or property reverts to the 
LRA under a legally binding agreement under the application, the LRA 
shall take appropriate actions to secure, to the maximum extent 
practicable, the utilization of the building or property by other 
homeless representatives to assist the homeless. An LRA may not be 
required to utilize the building or property to assist the homeless.

[[Page 964]]



                       SUBCHAPTER H--CIVIL DEFENSE





PART 185--MILITARY SUPPORT TO CIVIL AUTHORITIES (MSCA)--Table of Contents




Sec.
185.1  Purpose.
185.2  Applicability and scope.
185.3  Definitions.
185.4  Policy.
185.5  Responsibilities.
185.6  Information requirements.

    Authority: 50 U.S.C. 2251, as amended; E.O. 12148, 3 CFR 1979 Comp. 
p. 412.

    Source: 58 FR 52667, Oct. 12, 1993, unless otherwise noted.



Sec. 185.1  Purpose.

    This part:
    (a) Consolidates all policy and responsibilities previously known as 
``Military Assistance to Civil Authorities (MACA),'' applicable to 
disaster-related civil emergencies within the United States, its 
territories, and possessions under DoD Directive 3025.1 \1\ with those 
related to attacks on the United States, which previously were known as 
``Military Support to Civil Defense (MSCD)'' under DoD Directive 
3025.10.\2\
---------------------------------------------------------------------------

    \1\ The May 23, 1980 edition of this Directive has been canceled by 
DoD Directive 3025.1 dated January 15, 1993.
    \2\ Canceled by DoD Directive 3025.1, dated January 15, 1993.
---------------------------------------------------------------------------

    (b) Provides for continuation of the DoD Regional Military Emergency 
Coordinator (RMEC) teams, previously developed under DoD Directive 
5030.45 \3\, to facilitate peacetime planning for MSCA and to provide 
trained teams of DoD liaison personnel to represent essential DoD 
Components, as appropriate, for response to any national security 
emergency.
---------------------------------------------------------------------------

    \3\ See footnote 2 to Sec. 185.1(a).
---------------------------------------------------------------------------

    (c) Constitutes a single system for MSCA, by which DoD Components 
(as defined in Sec. 185.2) shall plan for, and respond to, requests from 
civil government agencies for military support in dealing with the 
actual or anticipated consequences of civil emergencies requiring 
Federal response, or attacks, including national security emergencies as 
defined in E.O. 12656, 53 FR 47491, 3 CFR 1988 Comp., p. 585.
    (d) States the policy and responsibilities by which the Department 
of Defense responds to major disasters or emergencies in accordance with 
the Stafford Act, as amended, and supports the national civil defense 
policy and Federal or State civil defense programs, in cooperation with 
the Federal Emergency Management Agency (FEMA), under the authority of 
The Federal Civil Defense Act of 1950.
    (e) Designates the Secretary of the Army as the DoD Executive Agent 
for MSCA.
    (f) Authorizes the publication of DoD 3025.1-M, ``DoD Manual for 
Civil Emergencies,'' consistent with DoD 5025.1-M.\4\
---------------------------------------------------------------------------

    \4\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------



Sec. 185.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense, the Military 
Departments, the Chairman of the Joint Chiefs of Staff and the Joint 
Staff, the Unified and Specified Commands, the Inspector General of the 
Department of Defense, the Defense Agencies, and the DoD Field 
Activities (hereafter referred to collectively as ``the DoD 
Components''). The term ``Military Services,'' as used herein, refers to 
the Army, the Navy, the Air Force, the Marine Corps, and the Coast Guard 
(when it is operating, or planning for operations, as a Service in the 
Navy).
    (b) Shall govern MSCA activities of all DoD Components in the 50 
States, the District of Columbia, the Commonwealth of Puerto Rico, and 
U.S. territories and possessions.
    (c) Does not apply to foreign disasters covered by DoD Directive 
5100.46.
    (d) Focuses on the assignment and allocation of DoD resources to 
support civilian authorities during civil emergencies arising during 
peace, war, or transition to war.
    (e) Does not integrate contingency war planning as a subelement of 
MSCA,

[[Page 965]]

and does not relieve the Chairman of the Joint Chiefs of Staff of his 
authority to supervise contingency planning.
    (f) Does not include military support to civil law enforcement. (See 
Sec. 185.4(b).)



Sec. 185.3  Definitions.

    Attack. Any attack or series of attacks by an enemy of the United 
States causing, or that may cause, substantial damage or injury to 
civilian property or persons in the United States (or its territories) 
in any manner, by sabotage or by the use of bombs, shellfire, or 
nuclear, radiological, chemical, bacteriological, or biological means, 
or other weapons or processes (Federal Civil Defense Act of 1950).
    Civil defense. All those activities and measures designed or 
undertaken to:
    (1) Minimize the effects upon the civilian population caused, or 
that would be caused, by an attack upon the United States or by a 
natural or technological disaster;
    (2) Deal with the immediate emergency conditions that would be 
created by any such attack or natural or technological disaster; and
    (3) Effectuate emergency repairs to, or the emergency restoration 
of, vital utilities and facilities destroyed or damaged by any such 
attack or natural or technological disaster.
    Civil disturbances. Group acts of violence and disorders prejudicial 
to public law and order within the 50 States, District of Columbia, 
Commonwealth of Puerto Rico, U.S. possessions and territories, or any 
political subdivision thereof. The term civil disturbance includes all 
domestic conditions requiring the use of Federal Armed Forces, as more 
specifically defined in DoD Directive 3025.12.\5\
---------------------------------------------------------------------------

    \5\ See footnote 4 to Sec. 185.1(f).
---------------------------------------------------------------------------

    Civil emergency. Any natural or manmade disaster or emergency that 
causes or could cause substantial harm to the population or 
infrastructure. This term can include a ``major disaster'' or 
``emergency,'' as those terms are defined in the Stafford Act, as 
amended, as well as consequences of an attack or a national security 
emergency. Under 42 U.S.C. 5121, the terms ``major disaster'' and 
``emergency'' are defined substantially by action of the President in 
declaring that extant circumstances and risks justify his implementation 
of the legal powers provided by those statutes.
    Civil emergency preparedness. The non-military actions taken by 
Federal agencies, the private sector, and individual citizens to meet 
essential human needs, to support the military effort, to ensure 
continuity of Federal authority at national and regional levels, and to 
ensure survival as a free and independent nation under all emergency 
conditions, including a national emergency caused by threatened or 
actual attack on the United States.
    Civil government resources. Civil resources owned by, controlled by, 
or under the jurisdiction of civilian agencies of the U.S. Government, 
or of State and local government agencies.
    Civil resources. Resources that normally are not controlled by the 
Government, including workforce, food and water, health resources, 
industrial production, housing and construction, telecommunications, 
energy, transportation, minerals, materials, supplies, and other 
essential resources and services. Such resources cannot be ordered to 
support needs of the public except by competent civil government 
authority.
    Continental United States Airborne Reconnaissance for Damage 
Assessment (CARDA). A system of aerial reconnaissance of the Continental 
United States for determining the effects of a nuclear attack. CARDA 
integrates the combined resources of all government agencies and 
Military Services for the National Command Authority.
    Defense Coordinating Officer (DCO). A military or civilian official 
of any DoD Component, who has been designated by the DoD Executive Agent 
to exercise some delegated authority of the DoD Executive Agency to 
coordinate MSCA activities under this Directive. The authority of each 
DCO will be defined in documentation issued or authorized by the DoD 
Executive Agent, and will be limited either to the requirements of a 
specified interagency planning process or to a specified geographic area 
or emergency. (The DoD

[[Page 966]]

Executive Agent also may delegate authority to designate DCOs to any DoD 
Planning Agent specified in this part.)
    Defense Emergency Response Fund. Established by Pub. L. 101-165 
(1989). That law provides that, ``The Fund shall be available for 
providing reimbursement to currently applicable appropriations of the 
Department of Defense for supplies and services provided in anticipation 
of requests from other Federal departments and agencies and from State 
and local governments for assistance on a reimbursable basis to respond 
to natural or manmade disasters. The Fund may be used upon a 
determination by the Secretary of Defense that immediate action is 
necessary before a formal request for assistance on a reimbursable basis 
is received.'' The Fund is applicable to Foreign Disaster Assistance 
under DoD Directive 5100.46 \6\ and to MSCA under the authority of this 
part.
---------------------------------------------------------------------------

    \6\ See footnote 4 to Sec. 185.1(f).
---------------------------------------------------------------------------

    DoD executive agent. The individual designated by position to have 
and to exercise the assigned responsibility and delegated authority of 
the Secretary of Defense, as specified in this part.
    DoD planning agent. An individual designated by position to 
facilitate and coordinate MSCA contingency planning (and MSCA operations 
when ordered) by all DoD Components within an assigned geographic area 
in accordance with the requirements of this part.
    DoD resources. Military and civilian personnel, including Selected 
and Ready Reservists of the Military Services, and facilities, 
equipment, supplies, and services owned by, controlled by, or under the 
jurisdiction of a DoD Component.
    Federal function. Any function, operation, or action carried out 
under the laws of the United States by any department, agency, or 
instrumentality of the United States, or by an officer or employee 
thereof.
    Federal property. Property that is owned, leased, possessed, or 
occupied by the Federal Government.
    Federal Region. A grouping of States and territories of the United 
States, by which FEMA coordinates responsibilities of the State 
governments with those of Federal departments and agencies, for disaster 
relief, civil defense, and planning for both civil and national security 
emergencies. These regions are sometimes referred to as ``FEMA Regions'' 
to distinguish them from any one of the various regional alignments of 
other Federal Departments and Agencies, all of which are circumscribed 
by FEMA's coordination authority. Today, there are ten Federal Regions, 
but the term is used generally to facilitate MSCA regardless of the 
number of Federal Regions at any time.
    Federal response plan. The inter-departmental planning mechanism, 
developed under FEMA leadership, by which the Federal Government 
prepares for and responds to the consequences of catastrophic disasters. 
Federal planning and response are coordinated on a functional group 
basis, with designated lead and support agencies for each identified 
functional area.
    Immediate response. Any form of immediate action taken by a DoD 
Component or military commander, under the authority of this part and 
any supplemental guidance prescribed by the Head of a DoD Component, to 
assist civil authorities or the public to save lives, prevent human 
suffering, or mitigate great property damage under imminently serious 
conditions occurring where there has not been any declaration of major 
disaster or emergency by the President or attack.
    Imminently serious conditions. Emergency conditions in which, in the 
judgment of the military commander or responsible DoD official, 
immediate and possibly serious danger threatens the public and prompt 
action is needed to save lives, prevent human suffering, or mitigate 
great property damage. Under these conditions, timely prior approval 
from higher headquarters may not be possible before action is necessary 
for effective response.
    Military resources. Military and civilian personnel, facilities, 
equipment, and supplies under the control of a DoD Component.
    Military Support to Civil Authorities (MSCA). Those activities and 
measures

[[Page 967]]

taken by the DoD Components to foster mutual assistance and support 
between the Department of Defense and any civil government agency in 
planning or preparedness for, or in the application of resources for 
response to, the consequences of civil emergencies or attacks, including 
national security emergencies.
    National Disaster Medical System (NDMS). An inter-departmental 
national mutual aid system developed by Federal departments and agencies 
to provide for the medical needs of victims of major disasters, and to 
provide backup support for medical systems of the Departments of Defense 
and Veterans Affairs in caring for casualties from military conflicts. 
The Department of Health and Human Services serves as the lead Federal 
agency for administering NDMS, and would coordinate NDMS operations in 
response to civil emergencies. The Department of Defense could activate 
and coordinate NDMS operations in support of military contingencies.
    National security emergency. Any occurrence, including natural 
disaster, military attack, technological emergency, or other emergency, 
that seriously degrades or seriously threatens the national security of 
the United States (E.O. 12656).
    Planning agent. A military or civilian official of any DoD 
Component, who has been designated by the head of that Component to 
exercise delegated authority for MSCA planning for the entire Component 
(i.e., ``principal planning agent'') or for certain subordinate elements 
or a specified geographic area (e.g., ``regional planning agents''). 
Authority and responsibilities of each planning agent will be defined by 
the Component, and may include MSCA response as well as planning at the 
election of any Component. The actual authority of planning agents will 
be communicated to others, as determined by the DoD Component, or when 
requested by the DoD Executive Agent.
    Regional Military Emergency Coordinator (RMEC). An individual, 
designated on behalf of the Secretary of Defense and the DoD Executive 
Agent, to perform coordination, information exchange, and liaison 
functions on behalf of the Department of Defense with any Federal 
emergency management structure established at the Region level. 
Alternate RMECs are designated by other DoD Components, as required, in 
accordance with this part; and the RMECs and alternates collectively are 
referred to as ``RMEC Teams.''
    Residual Capability Assessment (RECA). An assessment of the effects 
of a nuclear or conventional attack on U.S. resources, or of a major 
peacetime disaster that results in the declaration of a national 
security emergency. Such an assessment is made (through all appropriate 
means) to determine the remaining capabilities of the United States with 
emphasis on military preparedness.
    Resource claimancy. The procedure, employed during any period of 
attack or national security emergency, whereby authorized Federal 
agencies determine definitive requirements and justify the allocation of 
civil government and civil resources needed to support programs under 
their cognizance. It does not imply procurement activity, nor does it 
involve the Government as an intermediary in the normal mechanisms of 
trade other than in expediting essential activities and ensuring 
equitable distribution of civil resources. Resource claimancy occurs at 
both the national and regional levels.
    State Area Commands (STARCs). Specific headquarters units of the 
Army National Guard for each State, the District of Columbia, Guam, 
Puerto Rico, and the Virgin Islands.



Sec. 185.4  Policy.

    (a) National policy. (1) Planning and preparedness by the Federal 
Government for civil emergencies and attacks are important due to the 
severity of the consequences of emergencies for the nation and the 
population, and to the sophistication of means of attack on the United 
States and its territories.
    (2) Under the Stafford Act, as amended, it is the policy of the 
Federal Government to provide an orderly and continuing means of 
supplemental assistance to State and local governments in their 
responsibilities to alleviate the suffering and damage that result from 
major disasters or emergencies. Upon

[[Page 968]]

declaring a major disaster or emergency under the Stafford Act, the 
President may direct any agency of the Federal Government to undertake 
missions and tasks (on either a reimbursable or non-reimbursable basis) 
to provide assistance to State and local agencies. The President 
appoints a Federal Coordinating Officer (FCO) to operate in the affected 
area, and delegates authority to the FCO. The President has delegated to 
the Director of FEMA the authority to appoint FCOs; and FEMA officials 
frequently serve as FCOs.
    (3) In accordance with the Federal Civil Defense Act of 1950, as 
amended, the national civil defense policy is to have a civil defense 
program to develop capabilities common to all catastrophic emergencies 
and those unique to attack emergencies, which will support all-hazard 
emergency management at State and local levels, in order to protect the 
population and vital infrastructure. Under the national civil defense 
policy, the Department of Defense will support civil authorities in 
civil defense, to include facilitating the use of the National Guard in 
each State for response in both peacetime disasters and national 
security emergencies.
    (4) Under E.O. 12656, it is the policy of the Federal Government to 
have sufficient capabilities at all levels of government to meet 
essential defense and civilian needs during any national security 
emergency.
    (b) Scope. This part governs all planning and response by DoD 
Components for civil defense or other assistance to civil authorities, 
with the exception of military support to law enforcement operations 
under DoD Directive 3025.12 and contingency war plans.
    (c) Delegations of authority. The Secretary of Defense shall be 
assisted in executing his responsibility for MSCA by the following:
    (1) The Secretary of the Army shall be the DoD Executive Agent and 
shall act for the Secretary of Defense in accordance with this part and 
any supplemental direction or guidance received from the Secretary of 
Defense. In that capacity, the DoD Executive Agent will develop planning 
guidance, plans, and procedures for MSCA in accordance with this part. 
The DoD Executive Agent has the authority of the Secretary of Defense to 
task the DoD Components to plan for and to commit DoD resources, in 
response to requests from civil authorities under MSCA. The Secretary of 
the Army shall coordinate with the Chairman of the Joint Chiefs of Staff 
any commitment of military forces assigned to the Unified and Specified 
Commands.
    (2) The Chairman of the Joint Chiefs of Staff shall communicate to 
the Commanders of the Unified and Specified Commands appropriate 
guidance issued by the Secretary of the Army for their compliance with 
this part, and also shall assist the DoD Executive Agent in developing 
MSCA planning guidance for all conditions of war or attacks on the 
United States or its territories.
    (3) The Commander in Chief, Forces Command (CINCFOR); the Commander 
in Chief, U.S. Atlantic Command (USCINCLANT); and the Commander in 
Chief, U.S. Pacific Command (USCINCPAC), shall serve as ``DoD Planning 
Agents'' for MSCA. Pursuant to guidance issued by the DoD Executive 
Agent, after coordination with the Chairman of the Joint Chiefs of 
Staff, the DoD Planning Agents shall conduct MSCA planning, and shall 
lead MSCA planning activities of all DoD Components within the following 
geographic areas:
    (i) CINCFOR (48 contiguous States and the District of Columbia).
    (ii) USCINCLANT (Puerto Rico and the U.S. Virgin Islands).
    (iii) USCINCPAC (Alaska, Hawaii, and U.S. possessions and 
territories in the Pacific area).
    (4) The Commanders of the Unified and Specified Commands shall 
provide MSCA response, as directed by the DoD Executive Agent.
    (5) The Secretary of Defense reserves the authority to modify or 
terminate the executive agency established by this part if operational 
needs so require in a particular situation.
    (d) MSCA policy.
    (1) MSCA shall include (but not be limited to) support similar to 
that described for immediate response (paragraph (e) of this section), 
in either civil emergencies or attacks, during any period of peace, war, 
or transition to war.

[[Page 969]]

It shall include response to civil defense agencies, but shall not 
include military assistance for civil law enforcement operations.
    (i) DoD Directive 3025.12 governs use of military resources in the 
event of civil disturbances, which may include providing physical 
security for DoD Key Assets, as defined in DoD Directive 5160.54.\7\
---------------------------------------------------------------------------

    \7\ See footnote 4 to Sec. 185.1(f).
---------------------------------------------------------------------------

    (ii) Material, logistic, communications, and other assistance to law 
enforcement (especially during enforcement operations) is provided under 
DoD Directive 5525.5\8\
---------------------------------------------------------------------------

    \8\ See footnote 4 to Sec. 185.1(f).
---------------------------------------------------------------------------

    (2) The DoD Components shall respond to requirements of the DoD 
Executive Agent and DoD Planning Agents for MSCA, as authorized by this 
part.
    (3) To ensure sound management of DoD resources, MSCA planning will 
stress centralized direction of peacetime planning with civil 
authorities, with decentralized planning by DoD Components with civil 
agencies, where appropriate, and decentralized execution of approved 
plans in time of emergency.
    (4) Subject to priorities established by the President or the 
Secretary of Defense, all DoD resources are potentially available for 
MSCA. MSCA planning and execution will encourage and adhere to the 
following premises:
    (i) That civil resources are applied first in meeting requirements 
of civil authorities.
    (ii) That DoD resources are provided only when response or recovery 
requirements are beyond the capabilities of civil authorities (as 
determined by FEMA or another lead Federal agency for emergency 
response).
    (iii) That specialized DoD capabilities requested for MSCA (e.g., 
airlift and airborne reconnaissance) are used efficiently.
    (iv) Generally, military operations other than MSCA will have 
priority over MSCA, unless otherwise directed by the Secretary of 
Defense.
    (5) MSCA shall provide a mechanism to facilitate continuous and 
cooperative civil and military planning and preparedness to mobilize all 
appropriate resources and capabilities of the civil sector and the 
Department of Defense, whenever required for any form of national 
security emergency.
    (6) DoD planning shall recognize that:
    (i) Army and Air National Guard forces, acting under State orders 
(i.e., not in Federal service), have primary responsibility for 
providing military assistance to State and local government agencies in 
civil emergencies.
    (ii) The Army National Guard State Area Command (STARC), when 
ordered to Federal Active Duty, will be the DoD focal point for delivery 
of MSCA at State and local levels in time of war.
    (iii) Plans and preparedness measures of MSCA must foster close and 
continuous coordination for efficient employment of DoD resources of the 
National Guard (whether employed under State or Federal authority), as 
well as resources of the DoD Components, in time of peace, war, or 
transition to war.
    (iv) In the event of an attack on the United States, its 
territories, or possessions, the scope of MSCA in each geographical area 
will depend upon the commitment of military resources to military 
operations, the extent of damage sustained by the civilian communities, 
and the status of Active and Reserve Component forces.
    (7) DoD Components shall augment staffs responsible for MSCA, as 
appropriate, with personnel from Reserve components of all Military 
Services who are specifically trained for civil-military planning and 
emergency liaison duties. (See enclosure 3 in DoD Directive 1215.6.) \9\ 
The Military Services also shall ensure that all Active or Reserve 
component military personnel assigned or attached to FEMA are 
appropriately trained and employed to enhance DoD capabilities for MSCA 
in time of war or attack on the United States or its territories.
---------------------------------------------------------------------------

    \9\ See footnote 4 to Sec. 185.1(f).
---------------------------------------------------------------------------

    (8) The DoD Components ordinarily shall provide DoD resources in 
response to civil emergencies on a cost reimbursable basis. However, see 
paragraph (e)(2) of this section for circumstances in which an inability 
or unwillingness

[[Page 970]]

of a requester to commit to reimbursement will not preclude action by 
DoD components.
    (i) The DoD Components shall comply with legal and accounting 
requirements for the loan, grant, or consumption of DoD resources for 
MSCA, as necessary, to ensure reimbursement of costs to the DoD 
Components under the Stafford Act, as amended; the Defense Emergency 
Response Fund established by Public Law 101-165 (1989); or other 
applicable authority.
    (ii) The DoD Components shall not procure or maintain any supplies, 
material, or equipment exclusively for providing MSCA in civil 
emergencies, unless otherwise directed by the Secretary of Defense.
    (iii) Planning for MSCA during any time of attack on the United 
States shall assume that financial requirements will be met through 
appropriate legal processes.
    (9) Military forces employed in MSCA activities shall remain under 
military command and control under the authority of the DoD Executive 
Agent at all times.
    (10) The DoD Components shall not perform any function of civil 
government unless absolutely necessary on a temporary basis under 
conditions of Immediate Response. Any commander who is directed, or 
undertakes, to perform such functions shall facilitate the 
reestablishment of civil responsibility at the earliest time possible.
    (e) Immediate Response. (1) Imminently serious conditions resulting 
from any civil emergency or attack may require immediate action by 
military commanders, or by responsible officials of other DoD Agencies, 
to save lives, prevent human suffering, or mitigate great property 
damage. When such conditions exist and time does not permit prior 
approval from higher headquarters, local military commanders and 
responsible officials of other DoD Components are authorized by this 
part, subject to any supplemental direction that may be provided by 
their DoD component, to take necessary action to respond to requests of 
civil authorities. All such necessary action is referred to in this part 
as ``Immediate Response.''
    (2) While Immediate Response should be provided to civil agencies on 
a cost-reimbursable basis if possible, it should not be delayed or 
denied because of the inability or unwillingness of the requester to 
make a commitment to reimburse the Department of Defense.
    (3) Any commander or official acting under the Immediate Response 
authority of this Directive shall advise the DoD Executive Agent through 
command channels, by the most expeditious means available, and shall 
seek approval or additional authorizations as needed.
    (4) Immediate Response may include DoD assistance to civil agencies 
in meeting the following types of need:
    (i) Rescue, evacuation, and emergency medical treatment of 
casualties, maintenance or restoration of emergency medical 
capabilities, and safeguarding the public health.
    (ii) Emergency restoration of essential public services (including 
fire-fighting, water, communications, transportation, power, and fuel).
    (iii) Emergency clearance of debris, rubble, and explosive ordnance 
from public facilities and other areas to permit rescue or movement of 
people and restoration of essential services.
    (iv) Recovery, identification, registration, and disposal of the 
dead.
    (v) Monitoring and decontaminating radiological, chemical, and 
biological effects; controlling contaminated areas; and reporting 
through national warning and hazard control systems.
    (vi) Roadway movement control and planning.
    (vii) Safeguarding, collecting, and distributing food, essential 
supplies, and material on the basis of critical priorities.
    (viii) Damage assessment.
    (ix) Interim emergency communications.
    (x) Facilitating the reestablishment of civil government functions.
    (f) Military cooperation with civil agencies. (1) Under E.O. 12148 
(44 FR 43239, 3 CFR 1979 Comp., p. 412) and E.O. 12656, FEMA is 
responsible for coordinating Federal plans and programs for response to 
civil emergencies at the national and regional levels, and for Federal 
assistance to the States in civil

[[Page 971]]

emergencies. Other Federal departments and agencies have specific 
responsibilities for emergency planning and response under E.O. 12656, 
and under statutory authorities not listed in this part. The DoD 
Executive Agent shall ensure:
    (i) Coordination of MSCA plans and procedures with FEMA, and with 
other civil agencies as appropriate, at the national and Federal Region 
level.
    (ii) Facilitation of direct planning for MSCA by DoD facilities and 
installations with their local communities, and with their respective 
STARCs, as appropriate.
    (2) The DoD Executive Agent also shall provide appropriate guidance 
to facilitate MSCA planning and response with the American Red Cross and 
other civilian disaster and emergency assistance organizations where 
authorized by law.
    (g) Response under other authorities. DoD response to emergencies 
under authorities not cited in this Directive also may be directed, 
coordinated, or supplemented by the DoD Executive Agent, as 
circumstances require. For example:
    (1) The U.S. Coast Guard (USCG) or the U.S. Environmental Protection 
Agency (EPA) will coordinate Federal response to oil or hazardous 
material spills, other than those occurring within DoD jurisdictions. 
The DoD Executive Agent will provide MSCA to the USCG or the EPA; but 
responsibilities of DoD Components in areas under DoD jurisdiction are 
covered by DoD Directive 5030.41 \10\.
---------------------------------------------------------------------------

    \10\ See footnote 4 to Sec. 185.1(f).
---------------------------------------------------------------------------

    (2) Emergencies or other incidents involving radiological materials 
shall be handled in accordance with DoD Directive 5100.52 \11\.
---------------------------------------------------------------------------

    \11\ See footnote 4 to Sec. 185.1(f).
---------------------------------------------------------------------------

    (3) The Secretary of the Army shall ensure the implementation of DoD 
responsibilities for emergency water requirements, as specified in E.O. 
12656, and response to flooding, as provided in Public Law 84-99 (1941), 
as amended.
    (4) Forest fire emergencies are responsibilities of the U.S. 
Department of Agriculture or Interior. The Boise Interagency Fire Center 
(BIFC) may request DoD assistance; and specific details regarding DoD 
support are covered by agreements between the Department of Defense and 
the BIFC that are administered by the DoD Executive Agent.
    (5) The DoD Executive Agent is delegated the authority to direct DoD 
Components in planning for and responding to any civil emergency that 
may arise out of any mass immigration by aliens into the land territory 
of the United States, its territories and possessions, consistent with 
applicable law and this part. The DoD Executive Agent should ensure 
appropriate coordination with Federal law enforcement authorities in 
exercising this authority.
    (6) Use of DoD transportation resources in response to a non-
declared civil emergency shall be directed by the DoD Executive Agent 
under this part. (See also DoD Directive 4500.9 \12\
---------------------------------------------------------------------------

    \12\ See footnote 4 to Sec. 185.1(f).
---------------------------------------------------------------------------

    (h) Non-declared emergencies. The DoD Executive Agent may direct DoD 
Components to respond to any emergency, based on authority that is 
provided by this part or obtained from the Secretary or Deputy Secretary 
of Defense. If an emergency of any kind or size requires a response on 
behalf of the Department of Defense, where there has not been any 
declaration of major disaster or emergency by the President, or if 
reimbursement of funds to the Department of Defense is otherwise not 
certain, the DoD Executive Agent shall ascertain the authority necessary 
to commit DoD resources for response to requests from civil authorities.
    (1) Authorizations by the DoD Executive Agent under this paragraph 
shall include (but not be limited to) commitment of funds from the 
Defense Emergency Response Fund in anticipation of reimbursements to 
that fund.
    (2) The DoD Executive Agent shall obtain authorization from the 
Secretary of Defense or Deputy Secretary of Defense to provide support 
in those cases in which DoD response is not clearly required by Federal 
law or by DoD plans approved by the DoD Executive Agent.
    (i) Emergency priorities. When guidance cannot be obtained from 
higher headquarters on a timely basis, due to

[[Page 972]]

attack on the United States or other emergency circumstances, the DoD 
Components should apply DoD resources to MSCA in the following order of 
priority:
    (1) To save human life and mitigate human suffering, and to protect 
essential U.S. Government capabilities, including:
    (i) Continuity of the U.S. Government.
    (ii) Protection of U.S. Government officials.
    (iii) Prevention of loss or destruction to Federal property.
    (iv) Restoration of essential Federal functions.
    (2) To preserve or restore services of State and local government.



Sec. 185.5  Responsibilities.

    (a) The Under Secretary of Defense For Policy shall:
    (1) Exercise policy oversight of MSCA for the Secretary of Defense, 
and ensure compatibility of MSCA with National Security Emergency 
Preparedness, in accordance with DoD Directive 3020.36 \13\ and E.O. 
12656.
---------------------------------------------------------------------------

    \13\ See footnote 4 to Sec. 185.1(f).
---------------------------------------------------------------------------

    (2) Coordinate DoD policy governing plans and operations with FEMA; 
and assist the DoD Executive Agent, the Chairman of the Joint Chiefs of 
Staff, and others, as appropriate, in their coordination with FEMA.
    (b) The Assistant Secretary of Defense For Health Affairs shall 
coordinate policy for emergency medical support to civil authorities in 
consonance with this part, to include participation by the Department of 
Defense in the National Disaster Medical System (NDMS).
    (c) The Assistant Secretary of Defense (Reserve Affairs) shall 
advise the DoD Executive Agent, the Chairman of the Joint Chiefs of 
Staff, the USD(P), and the Secretaries of the Military Departments, as 
required, on Reserve component matters impacting on MSCA.
    (d) The Comptroller of the Department of Defense shall:
    (1) Facilitate accounting procedures that will enable the Department 
of Defense to respond on a timely basis to all emergency requirements 
for MSCA; and
    (2) In conjunction with the DoD Executive Agent, provide for 
accounting and other procedures necessary to manage expenditures for 
MSCA from the Defense Emergency Response Fund.
    (e) The Chairman of the Joint Chiefs of Staff shall:
    (1) Advise the Secretary of Defense and the DoD Executive Agent on 
policies, responsibilities, and programs bearing on MSCA.
    (2) In coordination with the DoD Executive Agent, facilitate 
communications by the DoD Executive Agent with commanders, as 
appropriate.
    (3) Ensure the compatibility of MSCA plans with other military 
plans.
    (4) Facilitate CINCFOR's development of an MSCA data base and 
emergency reporting system, as described in paragraph (j) of this 
section.
    (5) Facilitate coordinated evaluation of MSCA plans and capabilities 
by the Commanders of the Unified and Specified Commands through 
exercises or other means, as appropriate.
    (f) The Secretaries of the Military Departments shall:
    (1) Provide for participation by the Military Services in MSCA 
planning, in accordance with this part and with guidance of the DoD 
Executive Agent; and ensure readiness of Active and Reserve components 
to execute plans for MSCA.
    (2) Ensure the designation of a principal planning agent and 
regional planning agents of MSCA for each Military Service, and advise 
the DoD Executive Agent and the Chairman of the Joint Chiefs of Staff of 
such agents.
    (3) Ensure effective and efficient coordination of MSCA planning by 
Service installations with Federal Regions, STARCs, and State and local 
civil authorities, through the DoD Planning Agents, as directed by the 
DoD Executive Agent.
    (4) Furnish available resources for MSCA when directed by the DoD 
Executive Agent.
    (5) Identify to the DoD Executive Agent the resources of their 
respective Military Services that are potentially available for MSCA 
within the parameters of the DoD Resources Data Base (DODRDB) for MSCA, 
which is described in paragraph (n) of this section.

[[Page 973]]

Facilitate use of that data base to support decentralized management of 
MSCA in time of emergency, as appropriate.
    (6) Prepare to support civil requests for damage and residual 
capability assessment following civil emergencies or attacks, to include 
providing aerial reconnaissance as appropriate.
    (7) Provide Military Department representatives to serve on RMEC 
teams, as requested by the DoD Executive Agent.
    (8) Based on validated military planning and operational 
requirements, assign individual Reservists from Military Services to 
FEMA and other appropriate civil government offices and headquarters to 
provide liaison for planning and emergency operations for MSCA. (See 
enclosure 3 in DoD Directive 1215.6.)
    (9) Provide available Military Service personnel for MSCA training, 
including courses conducted by CINCFOR and FEMA.
    (10) Provide for application of critical emergency capabilities of 
the Services (such as disposal of explosive ordnance and nuclear 
devices) for MSCA, as required.
    (g) In addition to the responsibilities assigned under paragraph (f) 
of this section, the Secretary of the Army, as DoD Executive Agent, 
shall:
    (1) Coordinate with the Chairman of the Joint Chiefs of Staff, in 
advance, for the employment of forces assigned to the Unified and 
Specified Commands in MSCA missions.
    (2) Establish a single headquarters element (to be denominated the 
``Directorate of Military Support (DOMS)'') under the Secretary of the 
Army, through which the Secretary of the Army issues orders necessary to 
perform the duties of the DoD Executive Agent under this part. The 
Secretary of the Army shall ensure that the staff element includes 
specially qualified and trained officers of all Military Services, 
including those at senior levels within the element.
    (3) Manage expenditures for MSCA from the Defense Emergency Response 
Fund. (See Sec. 185.4(d)(8).)
    (4) Direct and coordinate the development of both generic and 
incident-specific plans for MSCA through the DoD Planning Agents 
designated in Sec. 185.4(c)(3), and through the DoD Components, as 
appropriate.
    (5) Establish appropriate guidance, through the National Guard 
Bureau, for the Adjutants General of the 50 States, District of 
Columbia, Guam, Puerto Rico, and the Virgin Islands to ensure compliance 
by the Army National Guard with this part. Such guidance shall provide 
for the following, as appropriate:
    (i) Resourcing the STARCs for MSCA planning and response tasks.
    (ii) STARC interfaces with commands and installations of all 
Services, including the DoD Planning Agents, and with State civil 
agencies.
    (iii) STARC acceptance, support, and utilization of liaison and 
augmentation from all Military Services, as appropriate.
    (6) Provide for the manning and operation of RMEC teams to 
coordinate the interface between the Defense Components and all Federal 
regional emergency management structures established by FEMA that may 
affect MSCA.
    (7) Provide for effective utilization in MSCA planning of the U.S. 
Army Corps of Engineers, the Naval Construction Force, and the U.S. Air 
Force Civil Engineers, to include all civil works authorities and other 
unique civil emergency capabilities, as permitted by law.
    (8) Delegate as appropriate authority under this part to the DoD 
Planning Agents, to Defense Coordinating Officers (DCOs) appointed for 
response to civil emergencies under the Stafford Act, as amended, or to 
other DoD officials to accomplish any requirement for MSCA planning or 
operations under this part.
    (9) Provide guidance to CINCFOR for content, dissemination, and use 
of the DODRDB for MSCA, which is described in paragraph (j) of this 
section and ensure opportunity for input by the Chairman of the Joint 
Chiefs of Staff in the continuing development of that data base.
    (10) Maintain national-level liaison with FEMA for MSCA.
    (11) Provide Army Reserve support to FEMA, on a reimbursable basis, 
for emergency communications, security

[[Page 974]]

operations, and associated management support, at the Federal Regions, 
as determined by agreement between FEMA and the DoD Executive Agent; and 
ensure the availability of such support during any time of war or 
national mobilization.
    (12) Provide full-time Army personnel, as required, to manage the 
Military Support Liaison Office established by agreement between the 
Secretary of Defense and the Director of FEMA. Utilize that office to 
facilitate requirements and communications of the DoD Executive Agent 
under this part.
    (13) Develop training courses for MSCA, including specialized 
training for Reserve component emergency preparedness liaison officers 
of all Military Services who will work with civilian communities and 
agencies as authorized for MSCA missions.
    (14) Provide authorizations to DoD Components to perform emergency 
work under Section 403(c) of the Stafford Act, as amended. That statute 
provides that, when authorized by the President at the request of a 
State Governor, under certain conditions, the Department of Defense may 
perform on public or private lands emergency work that is essential for 
the preservation of life or property. Emergency work by the Department 
of Defense under that provision may be carried out only for a period not 
to exceed 10 days, and is only 75 percent funded by Federal funds.
    (h) In addition to the responsibilities assigned under paragraph (f) 
of this section, the Secretary of the Navy shall:
    (1) Maintain liaison and coordinate planning with the Department of 
Transportation for participation by USCG forces in MSCA.
    (2) Furnish technical advice and support for MSCA planning and 
implementation in areas that are uniquely within the competence of the 
Navy, Marine Corps, or USCG (e.g., nuclear material disposal for coastal 
and maritime areas, and emergency protection or restoration of seaport 
capabilities).
    (i) In addition to the responsibilities assigned under paragraph (f) 
of this section, the Secretary of the Air Force shall:
    (1) Establish appropriate guidance, through the National Guard 
Bureau, for the Adjutants General of the 50 States, District of 
Columbia, Guam, Puerto Rico, and the Virgin Islands to ensure compliance 
by the Air National Guard with this part.
    (2) Facilitate planning by the Civil Air Patrol for participation in 
MSCA.
    (3) Furnish technical advice and support for MSCA planning and 
implementation in areas that are uniquely within the competence of the 
Air Force and its wartime augmentation elements (e.g., coordination with 
the Federal Aviation Administration, the National Aeronautics and Space 
Administration, and the National Oceanic and Atmospheric 
Administration).
    (4) Facilitate the conduct and coordination of aerial reconnaissance 
missions to perform damage assessment in support of MSCA.
    (j) In addition to serving as a DoD Planning Agent under paragraph 
(k) of this section, the Commander in Chief, Forces Command (CINCFOR), 
subject to the direction of the DoD Executive Agent, shall:
    (1) Maintain liaison with FEMA to facilitate cooperative civil and 
military planning and training for MSCA.
    (2) Lead DoD liaison with FEMA and other Federal Agencies at the 
Federal Regions, including utilization of the RMEC Teams.
    (3) Continue to develop, maintain, and disseminate the DODRDB.
    (i) The DODRDB shall support MSCA planning for civil emergencies or 
attacks, as well as post-disaster and post-attack damage and residual 
capability assessment by field elements of the DoD Components. It shall 
include essential information on resources routinely held by the DoD 
Components and directly applicable to lifesaving, survival, and 
immediate recovery aspects of MSCA.
    (ii) Forces to be included in the DODRDB are those that are based in 
the United States and its territories and most capable of supporting 
civil emergency functions. Those forces include (but are not limited to) 
construction, airlift, medical, signal, transportation, and military 
police elements, and training base forces of all Services. The DODRDB 
will not include strategic

[[Page 975]]

forces or any other forces identified for exclusion by the Chairman of 
the Joint Chiefs of Staff, unless otherwise directed by the Secretary of 
Defense.
    (iii) The DODRDB shall serve as the basis for emergency reports 
under continuity of operations, damage assessment, and residual 
capabilities, and shall include (but not be limited to) reports through 
the STARCs required by subsection F.2. of DoD Directive 3020.26.\14\
---------------------------------------------------------------------------

    \14\ See footnote 4 to Sec. 185.1(f).
---------------------------------------------------------------------------

    (4) Plan and conduct civil-military training courses and exercises 
in conjunction with FEMA.
    (k) The Commander in Chief, Forces Command; the Commander in Chief, 
U.S. Atlantic Command; and the Commander in Chief, U.S. Pacific Command, 
shall:
    (1) In accordance with guidance from the DoD Executive Agent 
communicated through the Chairman of the Joint Chiefs of Staff--
    (i) Serve as DoD Planning Agents for MSCA for the areas specified in 
Sec. 185.4(b)(3); and develop MSCA plans and preparedness measures for 
their MSCA areas of responsibility.
    (ii) Ensure cooperative planning for MSCA operations between DoD 
Components, FEMA, and other Federal or State civil agencies, as 
required.
    (iii) Utilize RMEC teams to assist in plan development.
    (iv) Coordinate with the STARCs through channels established by the 
Secretary of the Army; and utilize liaison officers provided for in DoD 
Directive 1215.6 and others, as appropriate, to facilitate coordination 
of emergency planning.
    (v) Plan to perform any designated function of the DoD Executive 
Agent under this part, if ordered by the Secretary of Defense in time of 
war or attack on the United States.
    (vi) Evaluate MSCA plans, preparedness measures, and training in 
joint civil military exercises.
    (2) Furnish MSCA as directed by the DoD Executive Agent. Employ RMEC 
Teams and liaison officers, as appropriate, to coordinate emergency 
response operations with civil agencies, the National Guard, the 
Military Departments and the CINCs.
    (3) Furnish assistance to civil authorities in non-declared 
emergency situations when directed by the DoD Executive Agent.
    (l) The Directors of the Defense Agencies shall:
    (1) Designate a principal planning agent and regional planning 
agents for MSCA, and advise the DoD Executive Agent of such designated 
agents.
    (2) Ensure effective and efficient coordination of planning by 
subordinate elements with Federal Regions, STARCs, and State and local 
civil authorities, through the DoD Planning Agents, as directed by the 
DoD Executive Agent.
    (3) Furnish resources for MSCA when directed by the DoD Executive 
Agent.
    (4) Make DoD resources available for technical support to the other 
DoD Components for MSCA, when required.
    (5) Respond to requests by the DoD Executive Agent to identify 
resources for the DODRDB.
    (6) Provide representatives to serve on RMEC teams, as requested by 
the DoD Executive Agent.



Sec. 185.6  Information requirements.

    The reporting requirements in Sec. 185.5 are exempt from licensing 
in accordance with paragraph E.4.b. of DoD 8910.1-M.\15\

    \15\ See footnote 4 to Sec. 185.1(f).
---------------------------------------------------------------------------



PART 186--THE DoD EXPLOSIVES SAFETY BOARD--Table of Contents




Sec.
186.1  Purpose.
186.2  Applicability.
186.3  Definition.
186.4  Organization.
186.5  Responsibilities.
186.6  Functions.
186.7  Relationships.

    Authority: 10 U.S.C. 172.

    Source: 49 FR 10118, Mar. 19, 1984, unless otherwise noted.



Sec. 186.1  Purpose.

    (a) This part is reissued and establishes the DoD Explosives Safety 
Board (DDESB) as a joint activity of the Department of Defense under 
title 10, United States Code, assigns responsibilities, and prescribes 
procedures.

[[Page 976]]

    (b) This part authorizes publication of DoD 6055.9-STD, ``DoD 
Ammunition and Explosives Safety Standards,'' consistent with DoD 
5025.1-M, ``DoD Directives System Procedures,'' April 1981.



Sec. 186.2  Applicability.

    This part applies to the Office of the Secretary of Defense (OSD), 
the Military Departments, the Defense Nuclear Agency (DNA), and the 
Defense Logistics Agency (DLA) (hereafter referred to collectively as 
``DoD Components''). The term ``Military Services,'' as used herein, 
refers to the Army, Navy, Air Force, and Marine Corps.



Sec. 186.3  Definition.

    Ammunition and explosives. Include liquid and solid propellants and 
explosives, pyrotechnics, riot control agents, smokes, incendiaries and 
chemical agents in any of the following: bulk form, ammunition, rockets, 
missiles, warheads, devices, and components thereof, used by the 
Military Services, but exclude wholly inert items and nuclear warheads 
and devices, except for considerations of blast, fire, and nonnuclear 
fragment hazards associated with the explosives.



Sec. 186.4  Organization.

    (a) The DDESB shall be composed of a chairman, a member from each 
Military Department, and be supported by a permanent civilian and 
military secretariat. The normal tour of duty for military personnel is 
3 years.
    (1) The Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) (ASD(MRA&L)) shall select and appoint the chairman from 
officers in the grade of 0-6 or higher, nominated by a Military 
Department Secretary or designee. The chairmanship will rotate among the 
Military Department every 3 years. The ASD(MRA&L), or designee, shall 
evaluate the chairman's performance.
    (2) The Secretary of each Military Department shall (i) select one 
qualified officer in the grade of 0-6 or higher to serve as a member of 
the DDESB in addition to his or her assigned duties, and one alternate 
of equivalent grade who shall act for his or her principal, if absent, 
with plenary powers. The alternate may be a qualified civilian employee 
of the Military Department concerned; and (ii) assign one qualified 
officer in the grade of 0-6 to the DDESB secretariat to advise the 
chairman on the Department's policies and procedures concerning 
explosives safety matters.
    (3) The Directors of the DNA and DLA shall designate a knowledgeable 
official from each of their Agencies who, in addition to assigned 
duties, shall serve as a nonvoting member of the DDESB when the business 
before the DDESB concerns that agency.



Sec. 186.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) shall have principal OSD staff responsibility for DDESB 
activities.
    (b) The Heads of DoD Components, or their designees, shall:
    (1) Consistent with DoD Directive 5000.19, ``Policies for the 
Management and Control of Information Requirements,'' March 12, 1976, 
provide the DDESB with information and support necessary to discharge 
its assigned responsibilities and functions.
    (2) Submit plans for construction or modification of pertinent 
facilities, outlining the type, character, and siting of the proposed 
construction or modification to the chairman, DDESB, for review and 
approval before inclusion of the project in proposed legislation for the 
current budget year, or before NATO or host country approval of funds. 
If plans provide less than prescribed safety, they shall be accompanied 
by a certification letter from the head of the DoD Component concerned 
that such siting is essential because of operational necessity or other 
compelling reasons.
    (3) Submit to the chairman, DDESB, for review and approval, plans 
for leasing, transferring, or disposing of DoD real property where 
ammunition and explosives contamination exists or is suspected to exist.
    (4) Set interim safety standards for the manufacture, storage, and 
handling of ammunition and explosives pending the publication of DoD 
6055.9-STD.
    (5) Keep the DDESB informed on safety problems related to ammunition

[[Page 977]]

and explosives development, manufacturing, testing, handling, 
transportation, storage, maintenance, demilitarization, and disposal.
    (6) Comply with DoD 6055.9-STD. With respect to explosives to which 
the United States holds title, but that are located in overseas areas 
and are not in U.S. custody and under effective U.S. control, carry out 
this function to the extent consistent with agreements or arrangements 
with the host country concerned. However, since both local law and DoD 
6055.9-STD apply, the more restrictive sets the minimum standards for 
DoD compliance. Waive or exempt compliance with DoD 6055.9-STD when 
justified by strategic or other compelling reasons.
    (7) Provide qualified personnel for DDESB working groups when 
requested by the chairman, DDESB.
    (8) Perform those tests and evaluations necessary for the assignment 
of explosives hazard classifications in accordance with Department of 
Defense Explosives Hazard Classification Procedures, September 1982 
(Joint Regulation, TB 700-2).
    (i) Military hazard classification and compatibility group.
    (ii) Transportation hazard class, commodity description, and 
markings. \1\
---------------------------------------------------------------------------

    \1\ If unable to comply with the provisions of Sec. 186.5.(b)(8) or 
TB 700-2 or, in the case of unresolved differences between DoD 
Components concerned, complete documentation shall be submitted to the 
chairman, DDESB, for resolution.
---------------------------------------------------------------------------

    (9) Appeal to the ASD(MRA&L) any DDESB decision with which they 
disagree.
    (c) The Secretary of the Army shall provide administrative support 
for the DDESB and its secretariat to include budgeting, funding, 
civilian personnel security, and any other required administrative 
services.
    (d) The Chairman, DDESB, shall:
    (1) Preside at DDESB meetings.
    (2) Establish and maintain a system, consistent with the provisions 
of DoD Directive 5000.19, that will provide the Secretary of Defense and 
DoD Components with current information on all DDESB matters.
    (3) Resolve conflicts within DDESB jurisdiction.
    (4) Manage and evaluate the activities and personnel of the 
secretariat.
    (5) Establish and direct the activities of temporary working groups 
to assist the DDESB.
    (6) Provide an annual report to the Secretaries of the Military 
Departments and the ASD(MRA&L) on the status of explosives safety within 
the DoD Components.



Sec. 186.6  Functions.

    The DoD Explosives Safety Board shall:
    (a) Provide impartial and objective advice to the Secretary of 
Defense, the Secretaries of the Military Departments, and the Directors 
of the Defense Agencies on ammunition and explosives manufacturing, 
testing, handling, maintenance, developing, demilitarization, disposal, 
transportation, and storage and on the construction and siting of 
facilities within the United States and overseas when under U.S. 
jurisdiction, or when planned or intended for U.S-titled ammunition and 
explosives. This advice shall be structured to prevent conditions that 
will endanger life and property both inside and outside DoD or host 
country installations.
    (b) Develop and submit to the ASD(MRA&L), for approval, DoD safety 
standards, to be published as DoD 6055.9-STD, designed to prevent or 
eliminate hazardous conditions associated with ammunition and 
explosives.
    (c) In coordination with DoD Components, establish joint procedures 
for explosives hazard classification and arbitrate or otherwise resolve 
differences resulting from or pertinent to the assignment of hazard 
classification.
    (d) Maintain liaison with other Federal and State agencies, allied 
governments, and industry having mutual interests or responsibilities in 
ammunition and explosives safety.
    (e) Keep informed on safety problems within the DoD Components 
relating to ammunition and explosives development, manufacture, testing, 
handling, transportation, storage, maintenance, demilitarization, and 
disposal; and within its capability, provide advice and assistance on 
request.
    (f) Survey, study, and evaluate DoD Components' performance on 
explosives safety procedures to ensure their

[[Page 978]]

compliance with DoD 6055.9-STD and to detect conditions that may 
endanger life and property inside or outside DoD installations. Provide 
reports to DoD Components on violations of the DoD 6055.9-STD and 
recommend corrective action.
    (g) Review and analyze reports, data, and information on ammunition 
and explosives hazards and accidents, except nuclear.
    (h) Review and approve the explosives safety aspects of all plans 
for siting and construction or modification of fixed or movable 
ammunition and explosives facilities, including facilities in their 
proximity. Facilities being constructed during combat conditions or the 
immediate expectations of combat conditions are exempted from this 
requirement. With respect to plans for new construction providing less 
than prescribed safety, a certification by the head of the DoD Component 
concerned justifying that such siting is essential because of 
operational necessity or other compelling reason shall be required.
    (i) Review and approve plans for leasing, transferring, or disposing 
of DoD real property where ammunition and explosives contamination exist 
or is suspected to exist.
    (j) Conduct programs for investigation, research, study, and tests 
concerning explosives hazards required to develop and maintain safety 
standards.



Sec. 186.7  Relationships.

    The chairman and DDESB members are authorized and expected to 
communicate freely with all DoD offices and other U.S. governmental, 
foreign, and private organizations having a mutual interest or 
responsibility in safety matters that involve ammunition and explosives. 
In technical relationships with foreign governments, agencies, or 
organizations, the chairman and DDESB members shall observe such policy 
and procedural guidance as may be prescribed by the chief of a 
diplomatic mission and the senior U.S. military representative in the 
country. With regard to nuclear weapons, access and communication shall 
be in accordance with the established procedures of the DNA and the 
Department of Energy.

[[Page 979]]



                       SUBCHAPTERS I-K [RESERVED]





                        SUBCHAPTER L--ENVIRONMENT





PART 187--ENVIRONMENTAL EFFECTS ABROAD OF MAJOR DEPARTMENT OF DEFENSE ACTIONS--Table of Contents




Sec.
187.1  Purpose.
187.2  Applicability.
187.3  Definitions.
187.4  Policy.
187.5  Responsibilities.
187.6  Information requirements.

Enclosure 1--Requirements for Environmental Considerations--Global 
          Commons
Enclosure 2--Requirements for Environmental Considerations--Foreign 
          Nations and Protected Global Resources

    Authority: Title 10 U.S.C. 131.

    Source: 44 FR 21786, Apr. 14, 1979, unless otherwise noted. 
Redesignated at 56 FR 64481, Dec. 10, 1991.



Sec. 187.1  Purpose.

    Executive Order 12114 provides the exclusive and complete 
requirement for taking account of considerations with respect to actions 
that do significant harm to the environment of places outside the United 
States. This part provides policy and procedures to enable Department of 
Defense (DoD) officials to be informed and take account of environmental 
considerations when authorizing or approving certain major Federal 
actions that do significant harm to the environment of places outside 
the United States. Its sole objective is to establish internal 
procedures to achieve this purpose, and nothing in it shall be construed 
to create a cause of action. Guidance for taking account of 
considerations with respect to the environment of places within the 
United States is set out in 32 CFR part 188 (under rev.) That guidance 
is grounded on legal and policy requirements different from those 
applicable to this part.
[44 FR 21786, Apr. 14, 1979. Redesignated and amended at 56 FR 64481, 
Dec. 10, 1991]



Sec. 187.2  Applicability.

    The provisions of this part apply to the Office of the Secretary of 
Defense, the Military Departments, the Organization of the Joint Chiefs 
of Staff, the Unified and Specified Commands, and the Defense Agencies 
(hereafter referred to as ``DoD components'').



Sec. 187.3  Definitions.

    (a) Environment means the natural and physical environment, and it 
excludes social, economic, and other environments. Social and economic 
effects do not give rise to any requirements under this part.
    (b) Federal Action means an action that is implemented or funded 
directly by the United States Government. It does not include actions in 
which the United States participates in an advisory, information-
gathering, representational, or diplomatic capacity but does not 
implement or fund the action; actions taken by a foreign government or 
in a foreign country in which the United States is a beneficiary of the 
action, but does not implement or fund the action; or actions in which 
foreign governments use funds derived indirectly from United States 
funding.
    (c) Foreign Nation means any geographic area (land, water, and 
airspace) that is under the jurisdiction of one or more foreign 
governments; any area under military occupation by the United States 
alone or jointly with any other foreign government; and any area that is 
the responsibility of an international organization of governments. 
``Foreign nation'' includes contiguous zones and fisheries zones of 
foreign nations. ``Foreign government'' in this context includes 
governments regardless of whether recognized by the United States, 
political factions, and organizations that exercise governmental power 
outside the United States.
    (d) Global Commons are geographical areas that are outside the 
jurisdiction of any nation, and include the oceans outside territorial 
limits and Antarctica. Global commons do not include contiguous zones 
and fisheries zones of foreign nations.

[[Page 980]]

    (e) Major Action means an action of considerable importance 
involving substantial expenditures of time, money, and resources, that 
affects the environment on a large geographic scale or has substantial 
environmental effects on a more limited geographical area, and that is 
substantially different or a significant departure from other actions, 
previously analyzed with respect to environmental considerations and 
approved, with which the action under consideration may be associated. 
Deployment of ships, aircraft, or other mobile military equipment is not 
a major action for purposes of this part.
    (f) United States means all States, territories, and possessions of 
the United States; and all waters and airspace subject to the 
territorial jurisdiction of the United States. The territories and 
possessions of the United States include the Virgin Islands, American 
Samoa, Wake Island, Midway Island, Guam, Palmyra Island, Johnston Atoll, 
Navassa Island, and Kingman Reef.



Sec. 187.4  Policy.

    (a) Executive Order 12114 is based on the authority vested in the 
President by the Constitution and the laws of the United States. The 
objective of the Order is to further foreign policy and national 
security interests while at the same time taking into consideration 
important environmental concerns.
    (b) The Department of Defense acts with care in the global commons 
because the stewardship of these areas is shared by all the nations of 
the world. The Department of Defense will take account of environmental 
considerations when it acts in the global commons in accordance with 
procedures set out in Enclosure 1 and its attachment.
    (c) The Department of Defense also acts with care within the 
jurisdiction of a foreign nation. Treaty obligations and the sovereignty 
of other nations must be respected, and restraint must be exercised in 
applying United States laws within foreign nations unless Congress has 
expressly provided otherwise. The Department of Defense will take 
account of environmental considerations in accordance with Enclosure 2 
and its attachments when it acts in a foreign nation.
    (d) Foreign policy considerations require coordination with the 
Department of State on communications with foreign governments 
concerning environmental agreements and other formal arrangements with 
foreign governments concerning environmental matters under this part.

Informal working-level communications and arrangements are not included 
in this coordination requirement. Consultation with the Department of 
State also is required in connection with the utilization of additional 
exemptions from this part as specified in paragraph C.3.b. of Enclosure 
2. Coordination and consultation with the Department of State will be 
through the Assistant Secretary of Defense (International Security 
Affairs).
    (e) Executive Order 12114, implemented by this part prescribes the 
exclusive and complete procedural measures and other actions to be taken 
by the Department of Defense to further the purpose of the National 
Environmental Policy Act with respect to the environment outside the 
United States.



Sec. 187.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) shall:
    (1) Serve as the responsible Department of Defense official for 
policy matters under Executive Order 12114 and this part;
    (2) Modify or supplement any of the enclosures to this part in a 
manner consistent with the policies set forth in this part;
    (3) Maintain liaison with the Council on Environmental Quality with 
respect to environmental documents;
    (4) Participate in determining whether a recommendation should be 
made to the President that a natural or ecological resource of global 
importance be designated for protection; and
    (5) Consult with the Assistant Secretary of Defense (International 
Security Affairs) on significant or sensitive actions or decisions 
affecting relations with another nation.
    (b) The Assistant Secretary of Defense (International Security 
Affairs) shall:
    (1) Maintain liaison and conduct consultations with the Department 
of State as required under this part; and

[[Page 981]]

    (2) Serve as the responsible official, in consultation with the 
Assistant Secretary of Defense (Manpower, Reserve Affairs, and 
Logistics), for monitoring the continuing cooperation and the exchange 
of information with other nations concerning the environment.
    (c) The General Counsel, DoD, shall provide advice and assistance 
concerning the requirements of Executive Order 12114 and this part.
    (d) The Secretaries of the Military Departments, Directors of the 
Defense Agencies, and Commanders of the Unified and Specified Commands, 
for operations under their jurisdiction, shall:
    (1) Prepare and consider environmental documents when required by 
this directive for proposed actions within their respective DoD 
component (this reporting requirement has been assigned Report Control 
Symbol DD-M(AR) 1327 (Sec. 187.6));
    (2) Insure that regulations and other major policy issuances are 
reviewed for consistency with Executive Order 12114 and this part;
    (3) Designate a single point-of-contact for matters pertaining to 
this part; and
    (4) Consult with the Assistant Secretary of Defense (International 
Security Affairs) on significant or sensitive actions or decisions 
affecting relations with another nation.
[44 FR 21786, Apr. 14, 1979. Redesignated and amended at 56 FR 64481, 
Dec. 10, 1991]



Sec. 187.6  Information requirements.

    The documents to be prepared under Sec. 187.5(d) and Enclosures 1 
and 2, ``Requirements for Environmental Considerations--Global 
Commons,'' and ``Requirements for Environmental Considerations--Foreign 
Nations and Protected Global Resources,'' respectively, are assigned 
Report Control Symbol DD-M(AR) 1327.
[44 FR 21786, Apr. 14, 1979. Redesignated and amended at 56 FR 64481, 
Dec. 10, 1991]

   Enclosure 1--Requirements for Environmental Considerations--Global 
                                 Commons

    A. General. This enclosure implements the requirements of Executive 
Order 12114 with respect to major Department of Defense actions that do 
significant harm to the environment of the global commons. The focus is 
not the place of the action, but the location of the environment with 
respect to which there is significant harm. The actions prescribed by 
this enclosure are the exclusive and complete requirement for taking 
account of environmental considerations with respect to Department of 
Defense activities that affect the global commons.
    B. Actions included. The requirements of this enclosure apply only 
to major Federal actions that do significant harm to the environment of 
the global commons.
    C. Environmental Document Requirements--1. General. When an action 
is determined to be a major Federal action that significantly harms the 
environment of the global commons, an environmental impact statement, as 
described below, will be prepared to enable the responsible decision-
making official to be informed of pertinent environmental 
considerations. The statement may be a specific statement for the 
particular action, a generic statement covering the entire class of 
similar actions, or a program statement.
    2. Limitations on Actions. Until the requirements of this enclosure 
have been met with respect to actions involving the global commons, no 
action concerning the proposal may be taken that does significant harm 
to the environment or limits the choice of reasonable alternatives.
    3. Emergencies. Where emergency circumstances make it necessary to 
take an action that does significant harm to the environment without 
meeting the requirements of this enclosure, the DoD component concerned 
shall consult with the Assistant Secretary of Defense (Manpower, Reserve 
Affairs, and Logistics). This includes actions that must be taken to 
promote the national defense or security and that cannot be delayed, and 
actions necessary for the protection of life or property.
    4. Combining Documents. Environmental documents may be combined with 
other agency documents to reduce duplication. If an environmental impact 
statement for a particular action already exists, regardless of what 
Federal agency prepared it, no new statement is required by this part.
    5. Collective Statements. Consideration should be given to the use 
of generic and program statements. Generic statements may include 
actions with relevant similarities such as common timing, environmental 
effects, alternatives, methods of implementation, or subject matter.
    6. Tiering. Consideration should be given to tiering of 
environmental impact statements to eliminate repetitive discussions of 
the same issue and to focus the issues. Tiering refers to the coverage 
of general matters in broader environmental impact statements, with 
succeeding narrower statements or environmental analyses that 
incorporate by

[[Page 982]]

reference the general discussion and concentrate only on the issues 
specific to the statement subsequently prepared.
    7. Lead Agency. When one or more other Federal agencies are involved 
with the Department of Defense in an action or program, a lead agency 
may be designated to supervise the preparation of the environmental 
impact statement. In appropriate cases, more than one agency may act as 
joint lead agencies. The following factors should be considered in 
making the lead agency designation:
    a. The magnitude of agency involvement;
    b. Which agency or agencies have project approval and disapproval 
authority;
    c. The expert capabilities concerning the environmental effects of 
the action;
    d. The duration of agency involvement; and
    e. The sequence of agency involvement.
    8. Categorical Exclusions. The Department of Defense may provide 
categorical exclusions for actions that normally do not, individually or 
cumulatively, do significant harm to the environment. If an action is 
covered by a categorical exclusion no environmental assessment or 
environmental impact statement is required. Categorical exclusions will 
be established by the Assistant Secretary of Defense (Manpower, Reserve 
Affairs, and Logistics) and will be identified in Attachment 1 to this 
enclosure, to be entitled, ``Categorical Exclusions--Global commons. 
``DoD components identifying recurring actions that have been 
determined, after analysis, not to do significant harm to the 
environment should submit recommendations for cateorical exclusions and 
accompanying justification to the Assistant Secretary of Defense 
(Manpower, Reserve Affairs, and Logistics).
    9. Environmental Assessments. The purpose of an environmental 
assessment is to assist DoD components in determining whether an 
environmental impact statement is required for a particular action. The 
assessment should be brief and concise but should include sufficient 
information on which a determination can be made whether the proposed 
action is major and Federal, and whether it significantly harms the 
environment of the global commons. As a minimum, the assessment should 
include consideration of the need for the proposed action and the 
environmental effect of the proposed action. The environmental 
assessment will be made available to the public in the United States 
upon request, but there is no requirement that it be distributed for 
public comment.
    D. Environmental Impact Statements. 1. General. Environmental impact 
statements will be concise and no longer than necessary to permit an 
informed consideration of the environmental effects of the proposed 
action on the global commons and the reasonable alternatives. If an 
action requiring an environmental impact statement also has effects on 
the environment of a foreign nation or on a resource designated as one 
of global importance, the statement need not consider or be prepared 
with respect to these effects. The procedures for considering these 
effects are set out in Enclosure 2, of this part.
    2. Draft Statement. Environmental impact statements will be prepared 
in two stages and may be supplemented. The first, or draft statement, 
should be sufficiently complete to permit meaningful analysis and 
comment. The draft statement will be made available to the public, in 
the United States, for comment. The Department of State, the council on 
environmental Quality, and other interested Federal agencies will be 
informed of the availability of the draft statement and will be afforded 
an opportunity to comment. Contacts with foreign governments are 
discussed in Sec. 187.4(d) and subsection D.11. of this enclosure.
    3. Final statement. Final statements will consider, either 
individually or collectively, substantive comments received on the draft 
statement. The final statement will be made available to the public in 
the United States.
    4. Supplemental statement. Supplements to the draft or final 
statement should be used when substantial changes to the proposed action 
are made relative to the environment of the global commons or when 
significant new information or circumstances, relevant to environmental 
concerns, bears on the proposed action or its environmental effects on 
the global commons. Supplemental statements will be circulated for 
comment as in subsection 2. of this enclosure unless alternative 
procedures are approved by the Assistant Secretary of Defense (Manpower, 
Reserve Affairs, and Logistics).
    5. Statement content. The statement will include: A section on 
consideration of the purpose of and need for the proposed action; a 
section on the environmental consequences of the proposed action and 
reasonable alternatives; a section that provides a succinct description 
of the environment of the global commons affected by the proposed action 
and reasonable alternatives; and a section that analyzes, in comparative 
form, the environmental effects on the global commons of the proposed 
action and reasonable alternatives.
    6. Incomplete Information. The statement should indicate when 
relevant information is missing due to unavailability or scientific 
uncertainty.
    7. Hearings. Public hearings are not required. consideration should 
be given in appropriate cases to holding or sponsoring public hearings. 
Factors in this consideration include: Foreign relations sensitivities; 
whether the hearings would be an infringement or create the appearance 
of infringement on the sovereign responsibilities of another government; 
requirements of domestic and foreign governmental confidentiality;

[[Page 983]]

requirements of national security; whether meaningful information could 
be obtained through hearings; time considerations; and requirements for 
commercial confidentiality. There is no requirement that all factors 
listed in this section be considered when one or more factors indicate 
that public hearings would not produce a substantial net benefit to 
those responsible for authorizing or approving the proposed action.
    8. Decision. Relevant environmental documents developed in 
accordance with this enclosure will accompany the proposal for action 
through the review process to enable officials responsible for 
authorizing or approving the proposed action to be informed and to take 
account of environmental considerations. One means of making an 
appropriate record with respect to this requirement is for the decision-
maker to sign and date a copy of the environmental impact statement 
indicating that it has been considered in the decision-making process. 
Other means of making an appropriate record are also acceptable.
    9. Timing. No decision on the proposed action may be made until the 
later of 90 days after the draft statement has been made available and 
notice thereof published in the Federal Register, or 30 days after the 
final statement has been made available and notice thereof published in 
the Federal Register. The 90-day period and the 30-day period may run 
concurrently. Not less than 45 days may be allowed for public comment. 
The Assistant Secretary of Defense (Manpower, Reserve Affairs, and 
Logistics) may, upon a showing of probable important adverse effect on 
national security or foreign policy, reduce the 30-day, 45-day, and 90-
day periods.
    10. Classified Information. Environmental assessments and impact 
statements that address classified proposals will be safeguarded and 
classified information will be restricted from public dissemination in 
accordance with Department of Defense procedures (32 CFR part 159) 
established for such information under Executive Order 12065. The 
requirements of that Executive Order take precedence over any 
requirement of disclosure in this part. Only unclassified portions of 
environmental documents may be disseminated to the public.
    11. Foreign Governments. Consideration will be given to whether any 
foreign government should be informed of the availability of 
environmental documents. Communications with foreign governments 
concerning environmental agreements and other formal arrangements with 
foreign governments concerning environmental matters under this part 
will be coordinated with the Department of State. Informal, working-
level communications and arrangements are not included in this 
coordination requirement. Coordination with the Department of State will 
be through the Assistant Secretary of Defense (International Security 
Affairs).
[44 FR 21786, Apr. 14, 1979. Redesignated and amended at 56 FR 64481, 
Dec. 10, 1991]

  Enclosure 2--Requirements for Environmental Considerations--Foreign 
                 Nations and Protected Global Resources

    A. General. This enclosure implements the requirements of Executive 
Order 12114 to provide for procedural and other actions to be taken to 
enable officials to be informed of pertinent environmental 
considerations when authorizing or approving certain major Department of 
Defense actions that do significant harm to the environment of a foreign 
nation or to a protected global resource.
    B. Actions included. 1. The requirements of this enclosure apply 
only to the following actions:
    a. Major Federal actions that significantly harm the environment of 
a foreign nation that is not involved in the action. The involvement of 
the foreign nation may be directly by participation with the United 
States in the action, or it may be in conjunction with another 
participating nation. The focus of this category is on the geographical 
location of the environmental harm and not on the location of the 
action.
    b. Major Federal actions that are determined to do significant harm 
to the environment of a foreign nation because they provide to that 
nation: (1) A product, or involve a physical project that produces a 
principal product, emission, or effluent, that is prohibited or strictly 
regulated by Federal law in the United States because its toxic effects 
on the environment create a serious public health risk; or (2) a 
physical project that is prohibited or strictly regulated in the United 
States by Federal law to protect the environment against radioactive 
substances. Included in the category of ``prohibited or strictly 
regulated'' are the following: asbestos, vinyl chloride, acrylonitrile, 
isocyanates, polychlorinated biphenyls, mercury, beryllium, arsenic, 
cadmium, and benzene.
    c. Major Federal actions outside the United States that 
significantly harm natural or ecological resources of global importance 
designated for protection by the President or, in the case of such a 
resource protected by international agreement binding on the United 
States, designated for protection by the Secretary of State. Such 
determinations by the President or the Secretary of State to be listed 
in Attachment 1 to this enclosure, entitled, ``Protected Global 
Resources''.
    2. The actions prescribed by this enclosure are the exclusive and 
complete requirement

[[Page 984]]

for taking account of environmental considerations with respect to 
Federal actions that do significant harm to the environment of foreign 
nations and protected global resources as described in subsection B.1., 
of this enclosure. No action is required under this enclosure with 
respect to Federal actions that affect only the environment of a 
participating or otherwise involved foreign nation and that do not 
involve providing products or physical projects producing principal 
products, emissions, or effluents that are prohibited or strictly 
regulated by Federal law in the United States, or resources of global 
importance that have been designated for protection.
    C. Environmental Document Requirements.
    1. General. a. There are two types of environmental documents 
officials shall use in taking account of environmental considerations 
for actions covered by this enclosure:
    (1) Environmental studies--bilateral or multilateral environmental 
studies, relevant or related to the proposed action, by the United 
States and one or more foreign nations or by an international body or 
organization in which the United States is a member or participant; and
    (2) Environmental reviews--concise reviews of the environmental 
issues involved that are prepared unilaterally by the United States.
    b. This section identifies the procedures for the preparation of 
environmental studies or reviews when required by this enclosure and the 
exceptions from the requirement to prepare environmental studies or 
reviews. If an environmental document already exists for a particular 
action, regardless of what Federal agency prepared it, no new document 
is required by this enclosure.
    2. Lead Agency. When one or more other Federal agencies are involved 
with the Department of Defense in an action or program, a lead agency 
may be designated to supervise the preparation of environmental 
documentation. In appropriate cases, more than one agency may act as 
joint lead agencies. The following factors should be considered in 
making the lead agency designation:
    a. The magnitude of agency involvement;
    b. Which agency or agencies have project approval and disapproval 
authority;
    c. The expert capabilities concerning the environmental effects of 
the action;
    d. The duration of agency involvement; and
    e. The sequence of agency involvement.
    3. Exemptions. There are general exemptions from the requirements of 
this enclosure provided by Executive Order 12114, and the Secretary of 
Defense has the authority to approve additional exemptions.
    a. General Exemptions. The following actions are exempt from the 
procedural and other requirements of this enclosure under general 
exemptions established for all agencies by Executive Order 12114:
    (1) Actions that the DoD component concerned determines do not do 
significant harm to the environment outside the United States or to a 
designated resource of global importance.
    (2) Actions taken by the President. These include: Signing bills 
into law; signing treaties and other international agreements; the 
promulgation of Executive Orders; Presidential proclamations; and the 
issuance of Presidental decisions, instructions, and memoranda. This 
includes actions taken within the Department of Defense to prepare or 
assist in preparing recommendations, advice, or information for the 
President in connection with one of these actions by the President. It 
does not include actions taken within the Department of Defense to 
implement or carry out these instruments and issuances after they are 
promulgated by the President.
    (3) Actions taken by or pursuant to the direction of the President 
or a cabinet officer in the course of armed conflict. The term ``armed 
conflict'' refers to: hostilities for which Congress has declared war or 
enacted a specific authorization for the use of armed forces; 
hostilities or situations for which a report is prescribed by section 
4(a)(1) of the War Powers Resolution, 50 U.S.C.A. 1543(a)(1) (Supp. 
1978); and other actions by the armed forces that involve defensive use 
or introduction of weapons in situations where hostilities occur or are 
expected. This exemption applies as long as the armed conflict 
continues.
    (4) Actions taken by or pursuant to the direction of the President 
or a cabinet officer when the national security or national interest is 
involved. The determination that the national security or national 
interest is involved in actions by the Department of Defense must be 
made in writing by the Assistant Secretary of Defense (Manpower, Reserve 
Affairs, and Logistics).
    (5) The activities of the intelligence components utilized by the 
Secretary of Defense under Executive Order 12036, 43 FR 3674 (1978). 
These components include the Defense Intelligence Agency, the National 
Security Agency, the offices for the collection of specialized 
intelligence through reconnaissance programs, the Army Office of the 
Assistant Chief of Staff for Intelligence, the Office of Naval 
Intelligence, and the Air Force Office of the Assistant Chief of Staff 
for Intelligence.
    (6) The decisions and actions of the Office of the Assistant 
Secretary of Defense (International Security Affairs), the Defense 
Security Assistance Agency, and the other responsible offices within DoD 
components with respect to arms transfers to foreign nations. The term 
``arms transfers'' includes the grant, loan, lease, exchange, or sale of

[[Page 985]]

defense articles or defense services to foreign governments or 
international organizations, and the extension or guarantee of credit in 
connection with these transactions.
    (7) Votes and other actions in international conferences and 
organizations. This includes all decisions and actions of the United 
States with respect to representation of its interests at international 
organizations, and at multilateral conferences, negotiations, and 
meetings.
    (8) Disaster and emergency relief actions.
    (9) Actions involving export licenses, export permits, or export 
approvals, other than those relating to nuclear activities. This 
includes: Advice provided by DoD components to the Department of State 
with respect to the issuance of munitions export licenses under section 
38 of the Arms Export Control Act, 22 U.S.C. 2778 (1976); advice 
provided by DoD components to the Department of Commerce with respect to 
the granting of export licenses under the Export Administration Act of 
1969, 50 U.S.C. App. 2401-2413 (1970 & Supp. V 1975); and direct exports 
by the Department of Defense of defense articles and services to foreign 
governments and international organizations that are exempt from 
munitions export licenses under section 38 of the Arms Export Control 
Act, 22 U.S.C. 2778 (1976). The term ``export approvals'' does not mean 
or include direct loans to finance exports.
    (10) Actions relating to nuclear activities and nuclear material, 
except actions providing to a foreign nation a nuclear production or 
utilization facility, as defined in the Atomic Energy Act of 1954, as 
amended, or a nuclear waste management facility.
    b. Additional Exemptions. The Department of Defense is authorized 
under Executive Order 12114 to establish additional exemptions that 
apply only to the Department's operations. There are two types of 
additional exemptions: Case-by-case and class.
    (1) Case-by-Case Exemptions. Exemptions other than those specified 
above may be required because emergencies, national security 
considerations, exceptional foreign policy requirements, or other 
special circumstances preclude or are inconsistent with the preparation 
of environmental documentation and the taking of other actions 
prescribed by this enclosure. The following procedures apply for 
approving these exemptions:
    (a) Emergencies. This category includes actions that must be taken 
to promote the national defense or security and that cannot be delayed, 
and actions necessary for the protection of life or property. The heads 
of the DoD components are authorized to approve emergency exemptions on 
a case-by-case basis. The Department of Defense is required to consult 
as soon as feasible with the Department of State and the Council on 
Environmental Quality with respect to emergency exemptions. The 
requirement to consult as soon as feasible is not a requirement of prior 
consultation. A report of the emergency action will be made by the DoD 
component head to the Assistant Secretary of Defense (Manpower, Reserve 
Affairs, and Logistics), who, with the Assistant Secretary of Defense 
(International Security Affairs), shall undertake the necessary 
consultations.
    (b) Other Circumstances. National security considerations, 
exceptional foreign policy requirements, and other special circumstances 
not identified in paragraph C.3.a. of this enclosure, may preclude or be 
inconsistent with the preparation of environmental documentation. In 
these circumstances, the head of the DoD component concerned is 
authorized to exempt a particular action from the environmental 
documentation requirements of this enclosure after obtaining the prior 
approval of the Assistant Secretary of Defense (Manpower, Reserve 
Affairs, and Logistics), who, with the Assistant Secretary of Defense 
(International Security Affairs), shall consult, before approving the 
exemption, with the Department of State and the Council on Environmental 
Quality. The requirement for prior consultation is not a requirement for 
prior approval.
    (2) Class Exemptions. Circumstances may exist where a class 
exemption for a group of related actions is more appropriate than a 
specific exemption. Class exemptions may be established by the Assistant 
Secretary of Defense (Manpower, Reserve Affairs, and Logistics), who, 
with the Assistant Secretary of Defense (International Security 
Affairs), shall consult, before approving the exemption, with the 
Department of State and the Council on Environmental Quality. The 
requirement for prior consultation is not a requirement for prior 
approval. Requests for class exemptions will be submitted by the head of 
the DoD component concerned to the Assistant Secretary of Defense 
(Manpower, Reserve Affairs, and Logistics) after coordination with other 
interested DoD components. Notice of the establishment of a class 
exemption will be issued as Attachment 2 to this enclosure to be 
entitled, ``Class Exemptions--Foreign Nations and Protected Global 
Resources.''
    4. Categorical Exclusions. The Department of Defense is authorized 
by Executive Order 12114 to provide for categorical exclusions. A 
categorical exclusion is a category of actions that normally do not, 
individually or cumulatively, do significant harm to the environment. If 
an action is covered by a categorical exclusion, no environmental 
document is required. Categorical exclusions will be established by the 
Assistant Secretary of Defense (Manpower, Reserve Affairs, and 
Logistics), and will be identified in Attachment 3 to this enclosure to 
be entitled, ``Categorical Exclusions--Foreign Nations and Protected 
Global

[[Page 986]]

Resources.'' DoD components identifying recurring actions that have been 
determined, after analysis, not to do significant harm to the 
environment should submit requests for categorical exclusions and 
accompanying justification to the Assistant Secretary of Defense 
(Manpower, Reserve Affairs, and Logistics).
    D. Environmental studies. 1. General. Environmental studies are one 
of two alternative types of documents to be used for actions described 
by section B. of this enclosure.
    a. An environmental study is an analysis of the likely environmental 
consequences of the action that is to be considered by DoD components in 
the decision-making process. It includes a review of the affected 
environment, significant actions taken to avoid environmental harm or 
otherwise to better the environment, and significant environmental 
considerations and actions by the other participating nations, bodies, 
or organizations.
    b. An environmental study is a cooperative action and not a 
unilateral action undertaken by the United States. It may be bilateral 
or multilateral, and it is prepared by the United States in conjunction 
with one or more foreign nations, or by an international body or 
organization in which the United States is a member or participant. The 
environmental study, because it is prepared as a cooperative 
undertaking, may be best suited for use with respect to actions that 
provide strictly regulated or prohibited products or projects to a 
foreign nation (B.l.b.) and actions that affect a protected global 
resource (B.l.c.).
    2. Department of State Coordination. Communications with foreign 
governments concerning environmental studies and other formal 
arrangements with foreign governments concerning environmental matters 
under this directive will be coordinated with the Department of State. 
Informal, working-level communications and arrangements are not included 
in this coordination requirement. Coordination with the Department of 
State will be through the Assistant Secretary of Defense (International 
Security Affairs).
    3. Whether to Prepare an Environmental Study. The judgment whether 
the action is one that would do significant harm to one of the 
environments covered by this enclosure normally will be made in 
consultation with concerned foreign governments or organizations. If a 
negative decision is made, the file will be documented with a record of 
that decision and the decision-makers who participated. If a decision is 
made to prepare a study then, except as provided by this enclosure, no 
action concerning the proposal may be taken that would do significant 
harm to the environment until the study has been completed and the 
results considered.
    4. Content of the Study. The document is a study of the 
environmental aspects of the proposed action to be considered in the 
decision-making process. The precise content of each study must be 
flexible because of such considerations as the sensitivity of obtaining 
information from foreign governments, the availability of useful and 
understandable information, and other factors identified under 
``Limitations,'' (subsection D.6., of this enclosure). The study should, 
however, include consideration of the following:
    a. A general review of the affected environment;
    b. The predicted effect of the action on the environment;
    c. Significant known actions taken by governmental entities with 
respect to the proposed action to protect or improve the environment; 
and
    d. If no actions are being taken to protect or enhance the 
environment, whether the decision not to do so was made by the affected 
foreign government or international organization.
    5. Distribution of the Study. Except as provided under 
``Limitations,'' (subsection D.6., of this enclosure), and except where 
classified information is involved, environmental studies will be made 
available to the Department of State, the Council on Environmental 
Quality, other interested Federal agencies, and, on request, to the 
public in the United States. Interested foreign governments also may be 
informed of the studies, subject to the ``Limitations'' (subsection 
D.6., of this enclosure) and controls on classified information, and 
furnished copies of the documents. No distribution is required prior to 
the preparation of the final version of the study or prior to taking the 
action that caused the study to be prepared.
    6. Limitations. The requirements with respect to the preparation, 
content, and distribution of environmental studies in the international 
context must remain flexible. The specific procedures must be determined 
on a case-by-case basis and may be modified where necessary to:
    a. Enable the component to act promptly. Considerations such as 
national security and foreign government involvement may require prompt 
action that must take precedence in the environmental review process;
    b. Avoid adverse impacts on relations between the United States and 
foreign governments and international organizations;
    c. Avoid infringement or the appearance of infringement on the 
sovereign responsibilities of another government. The collection of 
information and the preparation and distribution of environmental 
documentation for actions in which another nation is involved, or with 
respect to the environment and resources of another nation, unless done 
with proper regard to the sovereign authority of that nation, may be 
viewed by that nation as an interference in its internal affairs

[[Page 987]]

and its responsibility to evaluate requirements with respect to the 
environment;
    d. Ensure consideration of:
    (1) Requirements of governmental confidentiality. This refers to the 
need to protect sensitive foreign affairs information and information 
received from another government with the understanding that it will be 
protected from disclosure regardless of its classification;
    (2) National security requirements. This refers to the protection of 
classified information and other national security interests;
    (3) Availability of meaningful information. Information on the 
environment of foreign nations may be unavailable, incomplete, or not 
susceptible to meaningful evaluation, particularly where the affected 
foreign nation is not a participant in the analysis. This may reduce or 
change substantially the normal content of the environmental study;
    (4) The extent of the participation of the DoD component concerned 
and its ability to affect the decision made. The utility of the 
environmental analysis and the need for an in-depth review diminishes as 
DoD's role and control over the decision lessens; and
    (5) International commercial, commercial confidentiality, 
competitive, and export promotion factors. This refers to the 
requirement to protect domestic and foreign trade secrets and 
confidential business information from disclosure. Export promotion 
factors includes the concept of not unnecessarily hindering United 
States exports.
    7. Classified Information. Classified information will be 
safeguarded from disclosure in accordance with the Department of Defense 
procedures (32 CFR 159) established for such information under Executive 
Order 12065. The requirements of that Executive Order take precedence 
over any requirement of disclosure in this directive.
    E. Environmental Reviews. 1. General. Environmental reviews are the 
second of the two alternative types of documents to be used for actions 
covered by section B. of this enclosure.
    a. An environmental review is a survey of the important 
environmental issues involved. It includes identification of these 
issues, and a review of what if any consideration has been or can be 
given to the environmental aspects by the United States and by any 
foreign government involved in taking the action.
    b. An environmental review is prepared by the DoD component 
concerned either unilaterally or in conjunction with another Federal 
agency. While an environmental review may be used for any of the actions 
identified by section B., it may be uniquely suitable, because it is 
prepared unilaterally by the United States, to actions that affect the 
environment of a nation not involved in the undertaking (B.l.a.).
    2. Department of State Coordination. Communications with foreign 
governments concerning environmental agreements and other formal 
arrangements with foreign governments concerning environmental matters 
under this enclosure will be coordinated with the Department of State. 
Informal working-level communications and arrangements are not included 
in this coordination requirement. Coordination with the Department of 
State will be through the Assistant Secretary of Defense (International 
Security Affairs).
    3. Whether to Prepare an Environmental Review. Sufficient 
information will be gathered, to the extent it is reasonably available, 
to permit an informed judgment as to whether the proposed action would 
do significant harm to the environments covered by this enclosure. If a 
negative decision is made, a record will be made of that decision and 
its basis. If a decision is made to prepare a review, then, except as 
provided by this enclosure, no action concerning the proposal may be 
taken that would do significant environmental harm until the review has 
been completed.
    4. Content of the Review. An environmental review is a survey of the 
important environmental issues associated with the proposed action that 
is to be considered by the DoD component concerned in the decision-
making process. It does not include all possible environmental issues 
and it does not include the detailed evaluation required in an 
environmental impact statement under Enclosure 1 of this part. There is 
no foreign government or international organization participation in its 
preparation, and the content therefore may be circumscribed because of 
the availability of information and because of foreign relations 
sensitivities. Other factors affecting the content are identified under 
``Limitations,'' (subsection E.6., of this enclosure). To the extent 
reasonably practical the review should include consideration of the 
following:
    a. A statement of the action to be taken including its timetable, 
physical features, general operating plan, and other similar broad-guage 
descriptive factors;
    b. Identification of the important environmental issues involved;
    c. The aspects of the actions taken or to be taken by the DoD 
component that ameliorate or minimize the impact on the environment; and
    d. The actions known to have been taken or to be planned by the 
government of any participating and affected foreign nations that will 
affect environmental considerations.
    5. Distribution. Except as provided under ``Limitations,'' 
(subsection E.6., of this enclosure), and except where classified 
information is involved, environmental reviews will be made available to 
the Department of

[[Page 988]]

State, the Council on Environmental Quality, other interested Federal 
agencies, and, on request, to the public in the United States. 
Interested foreign governments also may be informed of the reviews and, 
subject to the ``Limitations'' (subsection E.6., of this enclosure) and 
controls on classified information, will be furnished copies of the 
documents on request. This provision for document distribution is not a 
requirement that distribution be made prior to taking the action that is 
the subject of the review.
    6. Limitations. The requirements with respect to the preparation, 
content, and distribution of environmental reviews in the international 
context must remain flexible. The specific procedures must be determined 
on a case-by-case basis and may be modified where necessary to:
    a. Enable the component to act promptly. Considerations such as 
national security and foreign government involvement may require prompt 
action that must take precedence in the environmental review process;
    b. Avoid adverse impacts on relations between the United States and 
foreign governments and international organizations;
    c. Avoid infringement or the appearance of infringement on the 
sovereign responsibilities of another government. The collection of 
information and the preparation and distribution of environmental 
documentation for actions in which another nation is involved or with 
respect to the environment and resources of another nation, unless done 
with proper regard to the sovereign authority of that nation, may be 
viewed by that nation as an interference in its internal affairs and its 
prerogative to evaluate requirements with respect to the environment; 
and
    d. Ensure consideration of:
    (1) Requirements of governmental confidentiality. This refers to the 
need to protect sensitive foreign affairs information and information 
received from another government with the understanding that it will be 
protected from disclosure regardless of its classification;
    (2) National security requirements. This refers to the protection of 
classified information;
    (3) Availability of meaningful information. Information on the 
environment of foreign nations may be unavailable, incomplete, or not 
susceptable to meaningful evaluation, and this may reduce or change 
substantially the normal content of the environmental review;
    (4) The extent of the participation of the DoD component concerned 
and its ability to affect the decision made. The utility of the 
environmental analysis and the need for an in-depth review diminishes as 
the role of the Department of Defense and control over the decision 
lessens; and
    (5) International commercial, commercial confidentiality, 
competitive, and export promotion factors. This refers to the 
requirements to protect domestic and foreign trade secrets and 
confidential business information from disclosure. Export promotion 
factors includes the concept of not unnecessarily hindering United 
States exports.
    7. Classified Information. Classified information will be 
safeguarded from disclosure in accordance with the DoD procedures (32 
CFR 159) established for such information under Executive Order 12065. 
The requirements of that Executive Order take precedence over any 
requirement of disclosure in this part.



PART 188--ENVIRONMENTAL EFFECTS IN THE UNITED STATES OF DoD ACTIONS--Table of Contents




Sec.
188.1  Reissuance and purpose.
188.2  Applicability and scope.
188.3  Definitions.
188.4  Policy.
188.5  Responsibilities.
188.6  Information requirements.

Enclosure 1--DoD Implementing Procedures
Annex A--DoD List of Categorical Exclusions

    Authority: 42 U.S.C. 4321.

    Source: 44 FR 46842, Aug. 9, 1979, unless otherwise noted. 
Redesignated at 56 FR 64481, Dec. 10, 1991.



Sec. 188.1  Reissuance and purpose.

    This part implements the Council on Environmental Quality (CEQ) 
regulations (40 CFR parts 1500-1508), and provides policy and procedures 
to enable DoD officials to be informed of and take into account 
environmental considerations when considering the authorization or 
approval of major DoD actions in the United States. The CEQ regulations 
implement section 102(2) of the National Environmental Policy Act (NEPA) 
of 1969, Pub. L. No. 91-190 (1970), 42 U.S.C. 4321, 4331-4335, 4341-4347 
(1976) (and Executive Order 11514, as amended.



Sec. 188.2  Applicability and scope.

    (a) This part applies to the Office of the Secretary of Defense, the 
Military Departments, the Organization of the Joint Chiefs of Staff, the 
Unified and Specified Commands, and the Defense Agencies (hereafter 
referred to as ``DoD Components'').

[[Page 989]]

    (b) This part is limited to DoD actions with environmental effects 
in the United States.
    (c) The civil works activities under the jurisdiction of the 
Secretary of the Army and the Chief of Engineers are excluded from this 
part.



Sec. 188.3  Definitions.

    (a) United States means all States, the District of Columbia, 
territories and possessions of the United States, and all waters and 
airspace subject to the territorial jurisdiction of the United States. 
The territories and possessions of the United States include the Virgin 
Islands, American Samoa, Wake Island, Midway Island, Guam, Palmyra 
Island, Johnston Atoll, Navassa Island, and Kingman Reef. For the 
purpose of this Directive, United States also includes the Commonwealth 
of Puerto Rico and the Commonwealth of the Northern Marianas.
    (b) Other terms used in this part are defined in 40 CFR part 1508 of 
the CEQ regulations.



Sec. 188.4  Policy.

    (a) The Department of Defense must act with care to ensure to the 
maximum extent possible that, in carrying out its mission of providing 
for the national defense, it does so in a manner consistent with 
national environmental policies. Care must be taken to ensure that, 
consistent with other considerations of national policy and with 
national security requirements, practical means and measures are used to 
protect, restore, and enhance the quality of the environment, to avoid 
or minimize adverse environmental consequences, and to attain the 
objectives of:
    (1) Achieving the widest range of beneficial uses of the environment 
without degradation, risk to health and safety, or other consequences 
that are undesirable and unintended;
    (2) Preserving important historic, cultural, and natural aspects of 
our national heritage, and maintaining, where possible, an environment 
that supports diversity and variety of individual choice;
    (3) Achieving a balance between resource use and development within 
the sustained carrying capacity of the ecosystem involved; and
    (4) Enhancing the quality of renewable resources and working toward 
the maximum attainable recycling of depletable resources.
    (b) The Department of Defense shall: (1) Assess environmental 
consequences of proposed DoD actions that could affect the quality of 
the environment in the United States in accordance with enclosure 1 and 
40 CFR parts 1500-1508.
    (2) Use a systematic, interdisciplinary approach that will ensure 
the integrated use of the natural and social sciences and environmental 
considerations in planning and decisionmaking where there may be an 
impact on man's environment.
    (3) Ensure that presently unmeasured environmental amenities are 
considered in the decisionmaking process;
    (4) Consider reasonable alternatives to recommended actions in any 
proposal that would involve unresolved conflicts concerning alternative 
uses of available resources;
    (5) Make available to States, counties, municipalities, 
institutions, and individuals advice and information useful in 
restoring, maintaining, and enhancing the quality of the environment; 
and
    (6) Utilize ecological information in planning and developing 
resource-oriented projects.



Sec. 188.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) shall: (1) Serve as the responsible official for all DoD 
environmental matters;
    (2) Modify or supplement enclosure 1 of this part, when required, in 
a manner consistent with the policies set forth here;
    (3) Provide assistance in the preparation of environmental 
assessments and statements, and assign, in consultation with appropriate 
Assistant Secretaries of Defense and heads of DoD Components, lead 
agency responsibility to prepare environmental documentation when more 
than one DoD Component is involved and agreement among the Components 
cannot be reached;

[[Page 990]]

    (4) Direct the preparation of environmental documents for specific 
proposed actions, when required;
    (5) Provide, when appropriate, consolidated Department of Defense 
comments requested by other Federal agencies on draft and final 
environmental impact statements;
    (6) Review proposed issuances of the Office of the Secretary of 
Defense that may have environmental implications; and
    (7) Maintain liaison with the Council on Environmental Quality, the 
Environmental Protection Agency, the Office of Management and Budget, 
other Federal agencies, and State and local groups with respect to 
environmental analyses for proposed DoD actions affecting the quality of 
the environment in the United States.
    (b) The General Counsel, DoD, shall provide advice and assistance 
concerning the requirements of this part.
    (c) The Secretaries of the Military Departments, Chairman of the 
Joint Chiefs of Staff, Directors of Defense Agencies, and Commanders of 
the Unified and Specified Commands, for operations under their 
jurisdiction, shall:
    (1) Assess environmental consequences of proposed programs and 
actions within their respective DoD Component;
    (2) Prepare and process environmental documents as required by this 
part;
    (3) Integrate environmental considerations into their decisionmaking 
processes;
    (4) Ensure that regulations and other major policy issuances are 
reviewed for consistency with the requirements of this part;
    (5) Provide comments on environmental impact statements for actions 
within their area of expertness of concern; and
    (6) Designate a single point of contact for matters pertaining to 
this part.



Sec. 188.6  Information requirements.

    The environmental documents to be prepared under Sec. 188.5, 
Enclosure 1, and 40 CFR parts 1500-1508 are assigned Report Control 
Symbol DD-M(AR)1327 (formerly DD-H&E(AR)1327).
[44 FR 46842, Apr. 9, 1979. Redesignated and amended at 56 FR 64481, 
Dec. 10, 1991]

                Enclosure 1--DoD Implementing Procedures

                               A. General

    1. Section 1507.3, Council on Environmental Quality regulations 
directs that Federal agencies shall as necessary adopt procedures to 
supplement the CEQ regulations. This enclosure provides those DoD 
implementing procedures.
    2. This enclosure must be read together with the CEQ regulations and 
the Act when applying the NEPA process.
    3. This enclosure is organized sequentially from early planning to 
final implementation of an action. Throughout this enclosure, references 
to the CEQ regulations identify the applicable section of those 
regulations; e.g., CEQ 1501.2.

                        B. Planning Consideration

    1. Early Planning. DoD Components shall integrate the NEPA process 
during the initial planning stages of proposed DoD actions to ensure 
that planning and decisions reflect environmental values, to avoid 
delays later in the process, and to preclude potential conflicts.
    2. Lead Agency. a. To determine the lead agency for preparing 
environmental documentation for proposed actions in which more than one 
DoD Component is involved, and in which no other Federal agency is 
involved, DoD Components shall apply the criteria in CEQ 1501.5. The 
ASD(MRA&L) shall resolve disagreements.
    b. When another Federal agency is involved and there is disagreement 
in lead agency determination, the ASD(MRA&L) shall attempt to resolve 
the differences. If unsuccessful, the ASD(MRA&L) shall file a request 
with CEQ for lead agency determination.
    3. Advising Applicants. CEQ 1501.2(d) provides for advising private 
applicants or other non-Federal entities when DoD involvement is 
reasonably foreseeable. Actions involving applications by private 
applicants or other non-Federal entities are limited within the 
Department of Defense and pertain primarily to permits, leases, and 
related actions concerning the use of DoD lands and property.
    a. The following are types of actions initiated by private persons, 
State or local agencies, and other non-Federal entities for which DoD 
involvement may be reasonably foreseeable:
    (1) Requests for easements and rights-of-way on DoD lands,
    (2) Grazing and agricultural leases, and

[[Page 991]]

    (3) Requests for permits, licenses, or other agreements for use of 
DoD real property by non-DoD entities.
    b. When DoD involvement is reasonably foreseeable, DoD Components 
shall consult early with appropriate State and local agencies and Indian 
tribes and with interested private persons and organizations.
    c. Public notices or other means used to inform or solicit 
applicants for permits, leases, or related actions shall describe the 
studies or information foreseeably required for later DoD Component 
action.
    d. When considering leasing or otherwise providing real property to 
non-DoD entities, DoD Components shall initiate the NEPA process, when 
required, as early as possible.
    4. Determination of Requirement for an Environmental Impact 
Statement. DoD Components shall determine as early as possible whether 
to prepare an environmental impact statement. Early determination 
ensures that necessary environmental documentation is prepared and 
integrated with the decisionmaking process. To determine whether to 
prepare an environmental impact statement, DoD Components shall 
determine whether the proposal is one that:
    a. Normally requires an environmental impact statement,
    b. Normally does not require either an environmental impact 
statement or an environmental assessment (categorical exclusion), or
    c. Normally requires an environmental assessment but not necessarily 
an environmental impact statement.
    5. Actions That Normally Require an Environmental Impact Statement. 
a. DoD Components shall determine if a proposal is one that normally 
requires an environmental impact statement. In some cases, it is readily 
apparent that a proposed action would have a significant impact on the 
environment. In that event, an environmental assessment is not required, 
and the DoD Component may begin the environmental impact statement 
phase. To determine those actions that normally do require the 
preparation of an environmental impact statement, the following 
considerations, which DoD Components may supplement, are provided:
    (1) Potential for significant degradation of environmental quality,
    (2) Potential for threat or hazard to the public,
    (3) Potential for significant impact on protected natural or 
historic resources.
    b. DoD component procedures will identify those typical classes of 
actions that normally require the preparation of environmental impact 
statements.
    c. In any case involving a proposed action of the sort that normally 
does require an environmental impact statement, a DoD Component may 
still prepare an environmental assessment to determine if an 
environmental impact statement is required based on the particular 
facts. If a determination is made based on the assessment that no 
environmental impact statement is required on the particular facts, a 
finding of no significant impact will be prepared and made available to 
the public in accordance with paragraph C.4. of this enclosure.
    6. Categorical Exclusion. The CEQ regulations provide for the 
establishment of categorical exclusions (CEQ 1507.3(b)) for those 
actions which do not individually or cumulatively have a significant 
effect on the human environment and for which, therefore, neither an 
environmental assessment nor an environmental impact statement is 
required. Categorical exclusions will help DoD Components avoid 
unnecessary effort and concentrate resources on significant 
environmental issues.
    a. Criteria. Considerations to assist in identifying categories of 
actions that normally do not require either an environmental impact 
statement or an environmental assessment include:
    (1) Minimal or no significant effect on environmental quality,
    (2) No significant change to existing environmental conditions,
    (3) No significant cumulative environmental impact,
    (4) Social and economic effects only,
    (5) Similarly to actions previously assessed and found to have no 
significant environmental impact.
    b. List of Categorical Exclusions. Categories of actions that the 
Department of Defense has determined to have no significant effect on 
the quality of the human environment and for which environmental impact 
statements and environmental assessments are not required are identified 
in Annex A to this enclosure.
    c. Changes to the List of Categorical Exclusions. (1) The DoD list 
of categorical exclusions is reviewed and refined as additional 
categories are identified. DoD Components may recommend additions or 
changes to this list. Recommendations shall be submitted to the ASD 
(MRA&L).
    (2) DoD Components are encouraged to include in their regulations to 
implement this Directive addition categorical exclusions that they 
identify. Categorical exclusions that one DoD Component identifies that 
may be applicable to other DoD Coponents should be brought to the 
attention of the ASD(MRA&L).
    d. Extraordinary Circumstances. If extraordinary circumstances exist 
indicating that a normally excluded action may have a significant 
environmental effect, an environmental assessment will be prepared for 
such otherwise categorically excluded action. Factors to consider in 
determining whether extraordinary circumstances exist include:

[[Page 992]]

    (1) Greater scope or size than normally experienced for a particular 
category of action,
    (2) Potential for degradation, even though slight, of already 
existing poor environmental conditions,
    (3) Presence of endangered species, archeological remains, or other 
cultural, historic, or protected resources, and
    (4) Use of hazardous or toxic substances.
    7. Actions That Normally Require an Environmental Assessment. When a 
proposal is not one that normally requires an environmental impact 
statement and does not qualify for categorical exclusion, the DoD 
Component shall prepare an environmental assessment.

                    C. Environmental Assessment Phase

    1. When to Prepare. DoD Components shall begin preparation of an 
environmental assessment as early as possible after the determination 
that an assessment is to be prepared.
    2. Content and Format. The environmental assessment is a concise 
public document to determine whether to prepare an environmental impact 
statement or whether to prepare a finding of no significant impact, to 
aid in compliance with NEPA when no environmental impact statement is 
necessary, and to facilitate preparation of a statement when one is 
necessary. Preparation of an environmental assessment generally does not 
require extensive research or lengthy documentation. The environmental 
assessment shall contain brief discussions of the following:
    a. Need for the proposed action,
    b. Alternatives considered when the proposed action involves 
unresolved conflicts concerning alternative uses of available resources,
    c. Environmental impacts of the proposed action and alternatives,
    d. Listing of agencies and persons consulted, and
    e. Conclusion of whether to prepare an environmental impact 
statement or a finding of no significant impact.
    3. Public Participation. DoD Components shall involve environmental 
agencies, applicants, and the public, to the extent practicable, in 
preparing environmental assessments. In determining ``to the extent 
practicable,'' factors that may be considered include:
    a. Magnitude of the proposal,
    b. Likelihood of public interest,
    c. Need to act quickly, and
    d. National security classification issues.
    4. Finding of No Significant Impact. If a DoD Component determines 
on the basis of the environmental assessment not to prepare an 
environmental impact statement, the DoD Component shall prepare a 
finding of no significant impact in accordance with CEQ 1501.4(e) and 
make the finding of no significant impact available to the affected 
public as specified in CEQ 1501.4(e) and CEQ 1506.6. A finding of no 
significant impact is not required when the decision not to prepare an 
environmental impact statement is based on a categorical exclusion.

                 D. Environmental Impact Statement Phase

    1. Notice of Intent. When a DoD Component decides to prepare an 
environmental impact statement, it shall publish a notice of intent in 
the Federal Register. The notice of intent shall be published before 
initiation of the scoping process.
    2. Scoping. After determinination that an environmental impact 
statement should be prepared and publication of the notice of intent, 
the DoD Component shall initiate the scoping process in accordance with 
CEQ 1501.7.
    3. Preparation Detailed procedures for preparation of the 
environmental impact statement are provided in CEQ 1502. The recommended 
format provided in CEQ 1502.10 is the standard format for DoD 
environmental impact statements. Requests for exception will be 
submitted to the ASD(MRA&L) for approval on a case-by-case basis.
    4. Supplemental Environmental Impact Statements. DoD Components may 
at any time supplement a draft or final environmental impact statement. 
DoD Components shall prepare a supplement to either the draft or final 
environmental impact statement in accordance with CEQ 1502.9(c). DoD 
Components normally will prepare, circulate, and file a supplement to a 
statement in the same manner (exclusive of scoping) as a draft or final 
statement. The supplement shall be included as part of the formal 
administrative record to be considered in the decisionmaking process. 
Exceptions to these procedures shall be requested from the ASD(MRA&L), 
who may undertake the discussions with the CEQ.
    5. Tiering. DoD Components should emphasize the use of tiering (CEQ 
1502.20) of environmental impact statements to eliminate repetitive 
discussions of the same issues and to focus the issues.
    6. Combining Documents. Any environmental document prepared in the 
NEPA process may be combined with any other agency document to reduce 
duplication (CEQ 1506.4). If an environmental impact statement for a 
particular action already exists, regardless of what Federal agency 
prepared it, no new statement is required by this Directive (CEQ 
1506.3).
    7. Incorporation by Reference. DoD Components shall incorporate 
material into the environmental impact statement by reference when the 
effect will be to cut down on bulk without impeding agency and public 
review of the action (CEQ 1502.21).
    8. Information on the NEPA Process. Information or status reports on 
environmental impact statements and other elements of the

[[Page 993]]

NEPA process shall be provided to interested persons upon request. This 
does not, however, encompass standing or blanket requests.
    a. Each DoD Component shall designate in its regulation implementing 
this part where interested persons can obtain information.
    b. For those actions relating to the Office of the Secretary of 
Defense, information is available by writing the Assistant Secretary of 
Defense (Manpower, Reserve Affairs, and Logistics), Washington, D.C. 
20301.
    9. Circulation of Environmental Impact Statements. DoD Components 
shall circulate draft and final environmental impact statements as 
prescribed in CEQ 1502.19. In addition, DoD Components shall provide one 
copy of each draft and each final statement to the ASD(MRA&L).
    10. Classified Material. It may be necessary for DoD Components to 
include classified material in environmental documentation. Classified 
information in environmental documents shall be safeguarded in 
accordance with Executive Order 12065 implemented by DoD 5200.1-R (32 
CFR part 159). The requirements for circulation (CEQ 1502.19) and public 
involvement (CEQ 1506.6) do not apply to classified environmental 
documents except where segregation of material and circulation and 
involvement can be accomplished consistently with the provisions of DoD 
5200.1-R. When feasible, environmental documents may be organized in 
such a manner that classified portions can be included as annexes so 
that unclassified portions can be made available to the public in the 
normal manner. This normally will not be possible when the proposal 
itself is classified.

                      E. Preimplementation Actions

    1. Decisionmaking. DoD Components shall ensure that the NEPA process 
is integrated into the decisionmaking process. Because of the size and 
diversity of the Department of Defense, it is not feasible to describe 
in this part the decisionmaking process for each of the various DoD 
programs. Proposals and actions may be initiated at any level. 
Similarly, review and approval authority may be exercised at various 
levels depending on the nature of the action, funding, and authority. It 
is necessary, therefore, that DoD Components provide further guidance, 
commensurate with their programs and organization, for integration of 
environmental considerations into the decisionmaking process. That 
guidance should include procedures to ensure that:
    a. Major decision points are designated for principal programs and 
proposals likely to have a significant effect on the quality of the 
human environment, and steps are taken to ensure that the NEPA process 
coincides with these decision points.
    b. Relevant environmental documents, comments, and responses 
accompany a proposal through existing DoD Component review processes so 
that they can be considered by DoD Component decisionmakers.
    c. The alternatives considered by the decisionmaker are encompassed 
by the range of alternatives discussed in relevant environmental 
documents, and the decisionmaker considers all the alternatives 
described in the environmental impact statement.
    2. Record of Decision. In those cases requiring environmental impact 
statements, DoD Components, at the time of the decision or, if 
appropriate, the proposal to Congress, shall prepare a concise public 
record of agency decision. The record of decision is not intended to be 
an extensive, detailed document. Rather, it is a concise document that 
sets forth the decision, identifies the alternatives considered in 
reaching the decision, specifies the environmentally preferable 
alternative or alternatives, indicates other factors that were balanced 
in the decisionmaking process, and states whether all practicable means 
to avoid or minimize environmental harm have been adopted, and if not, 
why not (CEQ 1505.2).
    3. Mitigation. Throughout the NEPA process, DoD Components shall, 
where possible, give consideration to mitigation measures to avoid or 
minimize environmental harm. Mitigation measures or programs shall be 
identified, when appropriate, in the environmental documents and made 
available to decisionmakers. Mitigation and other conditions that have 
been established in the environmental impact statement or during its 
review, and that have been committed as part of the decision, shall be 
implemented.
    4. Monitoring. If a DoD Component determines that monitoring is 
necessary to ensure that mitigation measures, to which a commitment has 
been made, are carried out, it shall adopt a monitoring program. DoD 
Components shall, upon request, provide monitoring information to the 
public and to cooperating and commenting agencies, as specified in CEQ 
1505.3. This does not, however, include standing or blanket requests for 
periodic reporting.
    5. Emergencies. In the event of an emergency, DoD Components may be 
required to take immediate action with significant environmental impact. 
This includes actions that must be taken to promote the national defense 
or security and that cannot be delayed, and actions necessary for the 
protection of life or property. DoD Components shall notify the 
ASD(MRA&L) of the emergency, who shall undertake the required 
consultation with the CEQ. In no event shall DoD Components delay an 
emergency action necessary to the national security, or for preservation 
of human life, for the purpose of complying with the provisions of this 
Directive or the CEQ regulations. If an emergency requires that an 
action be taken without delay, the ASD(MRA&L) shall be notified as

[[Page 994]]

promptly as is possible. The requirement for notification where action 
must be taken without delay is not a requirement for prior notification.

               Annex A--DoD List of Categorical Exclusions

    1. Preparation of regulations, directives, manuals, or other 
guidance documents that implement, without substantial change, the 
regulations, directives, manuals, or other guidance documents from 
higher headquarters or another Federal agency.
    2. Preparation of regulations, directives, manuals, and other 
guidance documents related to actions that qualify for categorical 
exclusion.
    3. Routine installation maintenance and grounds-keeping activities.
    4. Minor construction conducted in accordance with an approved 
installation master plan that does not significantly alter land use, 
provided that the operation of the completed project would not of itself 
have a significant environmental impact.
    5. Studies that involve no commitment of resources other than 
manpower and funding.
    6. Proposed actions that, based on sound judgment, are of such an 
environmentally insignificant nature as clearly not to meet the 
threshold for requiring an environmental assessment or environmental 
impact statement.
    7. Other categories as identified by DoD Components in their 
regulations implementing this part.



PART 189--MINERAL EXPLORATION AND EXTRACTION ON DoD LANDS--Table of Contents




Sec.
189.1  Purpose.
189.2  Applicability and scope.
189.3  Definitions.
189.4  Policy.
189.5  Responsibilities.
189.6  Procedures.
189.7  Summary of mineral leasing authorities.

    Authority: 30 U.S.C. 21a, 22, 181 et seq., 351 et seq., 601 et seq., 
1001 et seq., 1601 et seq. 40 U.S.C. 471. 43 U.S.C. 155 et seq.

    Source: 48 FR 48824, Oct. 21, 1983, unless otherwise noted. 
Redesignated at 56 FR 64481, Dec. 10,1991.



Sec. 189.1  Purpose.

    Under 30 U.S.C. 21a, 22, 181 et seq., 351 et seq., 601 et seq., 1001 
et seq., and 1601 et seq., 40 U.S.C. 471, and 43 U.S.C. 155 et seq., 
this rule establishes policy, assigns responsibilities, and provides 
procedures for making DoD lands available for mineral exploration and 
extraction.



Sec. 189.2  Applicability and scope.

    (a) This Directive applies to the Office of the Secretary of Defense 
and the Military Departments (including their National Guard and reserve 
components).
    (b) It applies to DoD-controlled lands acquired or withdrawn from 
the public domain (including Army civil works lands) within the United 
States and its territories and possessions for which the mineral rights 
are owned by the United States, with the following exceptions:
    (1) Mineral leasing of lands situated within incorporated cities, 
towns, and villages (30 U.S.C. 351 et seq. and 181 et seq.).
    (2) Mineral leasing of tidelands or submerged lands (30 U.S.C. 351).
    (3) Certain hardrock minerals known as locatables (30 U.S.C. 22).
    (4) A class of minerals composed of sand and gravel known as 
saleables (30 U.S.C. 601 et seq. and 41 CFR 101-47.302-2).



Sec. 189.3  Definitions.

    (a) Leasable minerals. Minerals, such as oil and gas, that are owned 
by the United States and that have been authorized under statute as 
potential minerals for extraction under a mineral lease (30 U.S.C. et 
seq., 181 et seq., and 1001 et seq.
    (b) Locatable minerals. Minerals, such as gold and silver, that are 
owned by the United States, that are on public domain lands, that are 
subject to discovery and claim, and that are not leasable or saleable 
(30 U.S.C. 22).
    (c) Mineral lease. A grant of a right to explore for and extract 
leasable minerals. No surface occupancy, drilling, or other mineral 
extraction is permitted until an operations plan is approved by the DoI 
in consultation with the Military Department concerned.
    (d) Multiple-use principle. The integrated management of all 
resources, each with the other, to achieve their optimum use and 
enjoyment while maintaining environmental and other qualities in 
balance.
    (e) Permit. Temporary permission to conduct seismic or other 
geological

[[Page 995]]

and geopohysical tests before requesting a mineral lease.
    (f) Saleable minerals. Common variety minerals, such as sand, clay, 
and gravel, that are sold under certain statutory authorities (30 U.S.C. 
et seq. and 41 CFR 101-47.302-2



Sec. 189.4  Policy.

    In accordance with established DoD policy to promote optimal use of 
real property under the multiple-use principle (DoD Directive 4700.1), 
DoD lands shall be made available for mineral exploration and extraction 
to the maximum extent possible consistent with military operations, 
national defense activities, and Army civil works activities.



Sec. 189.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Manpower, Reserve Affairs, 
and Logistics) shall:
    (1) Have primary responsibility for developing DoD policy for 
mineral exploration and extraction on DoD lands.
    (2) Ensure that the Military Departments issue regulatory documents 
implementing this Directive.
    (b) The Secretaries of the Military Departments shall:
    (1) Review and approve or disapprove requests from the Department of 
the Interior (DoI), the Federal mineral leasing agency, to lease DoD 
lands under 43 U.S.C. 155 et seq. and DoD Directive 5160.63.
    (2) Issue regulatory documents implementing this Directive to 
prescribe procedures relating to the issuance of permits and leases and 
the approval of plans of operations for mineral exploration and 
extraction.
    (3) Formulate a system for maintaining records of land status to 
assist the DoI in mineral leasing. This system shall be established in 
accordance with DoD Directive 5000.11 and shall use existing standard 
data elements from DoD 5000.12-M, whenever possible.



Sec. 189.6  Procedures.

    (a) If a Military Department cannot consent to exploration or 
extraction, it also may not approve testing or leasing. Exclusion of 
lands from exploration and extraction shall be justified and supported. 
Availability of lands is subject to certain conditions and stipulations 
that also shall be justified. Granting approval for leasing usually 
shall be construed as consent ultimately to allow drilling or other 
forms of mineral extraction. Accordingly, initial approval clearly shall 
indicate the conditions, if known, under which further exploration or 
extraction shall be allowed. For example, classified operations, 
ammunition and explosives operational storage requirements, and 
contaminated lands may restrict or exclude leasing or may require no 
surface disturbance stipulations (DoD 5154.4-S).
    (b) The Military Departments may issue permits to parties interested 
in conducting seismic or other geophysical tests on DoD lands. In 
unusual circumstances, the Military Departments may refer permit 
applications to the DoI for issuance. Permits are subject to the 
approval of, and conditions imposed by, the Military Department 
concerned. The issuing agency shall make any required environmental and 
cultural studies. For permits issued by the DoI, the Military Department 
concerned shall provide, upon request, environmental and cultural 
information held by the Department.
    (c) Leases. The DoI receives and processes all mineral lease 
requests and then forwards such lease offers and title report requests 
to the Military Department concerned. The Military Department then shall 
decide whether and under what conditions its land may be made available 
for leasing.
    (1) Environmental and cultural considerations for leases. As the 
lead agency, the DoI obtains all environmental and cultural 
documentation before deciding to lease. The responsibilities of the 
Military Department concerned, when acting as a cooperating agency, 
shall be limited to providing to the DoI, upon request, any available 
environmental and cultural information.
    (2) Title search. The Military Department concerned shall furnish to 
the DoI available information for acquired lands. DoI title records 
shall be relied upon for withdrawn public domain lands, except that the 
Military Departments shall identify all outstanding interests, such as 
easements and licenses. When title information is incomplete,

[[Page 996]]

the Military Department shall so advise the DoI.
    (3) Plans of operations. After the lease is executed, the lessee 
submits a plan of operations (Application for Permit to Drill for oil 
and gas or Mining Plan for other minerals) to the DoI for technical 
review and coordination with the Military Department concerned. As a 
cooperating agency, the Military Department shall supply appropriate 
stipulations; available environmental, endangered species, and cultural 
information; and concurrence with the plan. The DoI then formalizes the 
environmental considerations and approves the plan with the stipulations 
supplied by the Military Department. Stipulations shall be tied directly 
to the details of the proposed plan of operations, and each stipulation 
shall be objectively justifiable.
    (4) The DoI has the responsibility for the collection and 
disposition of proceeds derived from mineral leasing.



Sec. 189.7  Summary of mineral leasing authorities.

    (a) 30 U.S.C. 351 et seq. authorizes leasing of coal, phosphate, 
sodium, potassium, oil, oil shale, gas, or sulfer within acquired DoD 
lands. 30 U.S.C. 181 et seq. authorizes leasing of coal, phosphate, 
sodium, oil, oil shale, native asphalt, solid or semi-solid bitumen, and 
bituminous rock or gas within DoD-withdrawn public domain lands under 
certain conditions and in certain places. Under the leasing statutes, 
the Secretary of the Interior is responsible for granting and 
administering such leases. 30 U.S.C. 101 et seq. authorizes the 
Secretary of the Interior to issue leases for development of geothermal 
steam and associated resources on public lands. This includes public 
lands withdrawn for use by the Military Departments.
    (b) 30 U.S.C. 351 et seq. specifically provides for consent of the 
head of the executive department having jurisdiction over the lands 
containing the mineral deposit before leasing. For public domain lands 
withdrawn for use of the Department of Defense 43 U.S.C. 155 et seq. 
provides that there will be no disposition of or exploration for 
minerals on public domain lands when the Secretary of Defense, in 
consultation with the Secretary of the Interior, determines that such 
disposition or exploration is inconsistent with the military use of the 
land.



PART 190--NATURAL RESOURCES MANAGEMENT PROGRAM--Table of Contents




Sec.
190.1  Purpose.
190.2  Applicability and scope.
190.3  Definitions.
190.4  Policy.
190.5  Responsibilities.
190.6  Procedures.
190.7  Information requirements.

Appendix--Integrated Natural Resources Management

    Authority: 16 U.S.C. 1531 et seq., 16 U.S.C. 670 et seq., 10 U.S.C. 
2665, 10 U.S.C. 2667(d), 10 U.S.C. 2671 and 16 U.S.C. 460(l).

    Source: 54 FR 7539, Feb. 22, 1989, unless otherwise noted. 
Redesignated at 56 FR 64481, Dec. 10, 1991.



Sec. 190.1  Purpose.

    This part.
    (a) Replaces DoD Directive 4700.1.\1\
---------------------------------------------------------------------------

    \1\ Canceled by DoD Directive 4700.4.
---------------------------------------------------------------------------

    (b) Supersedes 32 CFR parts 232, 233, 234, and 217.
    (c) Implements 16 U.S.C. 1531 et seq., 16 U.S.C. 670 et seq., 10 
U.S.C. 2665, 10 U.S.C. 2667(d), 10 U.S.C. 2671, and 16 U.S.C. 460(l).
    (d) Prescribes policies and procedures for an integrated program for 
multiple-use management of natural resources on property under DoD 
control.
[54 FR 7539, Feb. 22, 1989. Redesignated and amended at 56 FR 64481, 
Dec. 10, 1991]



Sec. 190.2  Applicability and scope.

    This part:
    (a) Applies to the Office of the Secretary of Defense (OSD), the 
Military Departments (including their National Guard and Reserve 
components), the Joint Staff, the Unified and Specified Commands, and 
the Defense Agencies (hereafter referred to collectively as ``DoD 
Components''). The term ``Military Services,'' as used herein, refers to 
the Army, Navy, Air Force, and Marine Corps.
    (b) Governs DoD management of natural resources in the United States 
and its territories and possessions for both

[[Page 997]]

appropriated and nonappropriated fund activities.
    (c) Does not govern natural resources management at State-owned 
National Guard installations. Nothing contained in this part nor in 
implementing documents or agreements shall modify rights granted by 
treaty to Indian tribes or their members.
    (d) Does not apply to the civil works functions of the Army.



Sec. 190.3  Definitions.

    Agricultural Outlease. Use of DoD lands under a lease to an agency, 
organization, or person for growing crops or grazing animals.
    Carrying Capacity (Outdoor Recreation). The maximum amount of 
recreation activity and number of participants that a land or water area 
can support in manner compatible with the objectives of the natural 
resources management plan and without degrading existing natural 
resources.
    Carrying Capacity (Wildlife). The maximum density of wildlife that a 
particular area or habitat will support on a sustained basis without 
deterioration of the habitat.
    Conservation. Wise use and management of natural resources to 
provide the best public benefits and continued productivity for present 
and future generations.
    Cooperative Plan. The component of the natural resources management 
plan that describes how fish and wildlife resources at an installation 
shall be managed and that has been coordinated with U.S. Fish and 
Wildlife Service and the appropriate State agency. It provide for:
    (a) Fish and wildlife habitat improvements or modifications.
    (b) Range rehabilitation where necessary for support of wildlife.
    (c) Control of off-road vehicle traffic.
    (d) Specific habitat improvement projects and related activities and 
adequate protection for species of fish, wildlife, and plants considered 
threatened or endangered.
    Critical Habitat. A specific designated area declared essential for 
the survival of a protected species under authority of the Endangered 
Species Act.
    Endangered or Threatened Species. A species of fauna of flora that 
has been designated by the U.S. Fish and Wildlife Service for special 
protection and management pursuant to the Endangered Species Act.
    Forest Products. All plan materials in wooded areas that have 
commercial value.
    Game Species. Fish and Wildlife that may be harvested in accordance 
wtih Federal and State laws.
    Grounds. All land areas not occupied by buildings, structures, 
pavements, and railroads.
    Habitat. An area where a plant or animal species lives, grows, and 
reproduces, and the environment that satisfies any of their life 
requirements.
    Multiple-Use. The use of natural resources for the best combination 
of purposes to meet the needs of the military and the public.
    Natural Resources. Land, water, and their associated flora and 
fauna.
    Natural Resources Management Professional. Individual with an 
undergraduate or graduate degree in a natural resources-related science 
and who has responsibility for managing natural resources on a regular 
basis.
    Nongame Species. Species not harvested for recreation or subsistence 
purposes.
    Noxious Weeds. Plant species identified by Federal or State Agencies 
as requiring control or eradication.
    Off-road Vehicle. A vehicle designed for travel on natural terrain. 
The term excludes a registered motorboat confined to use on open water 
and a military, emergency, or law enforcement vehicle during use by an 
employee or agent of the Government or one of its contractors in the 
course of employment or agency representation.
    Outdoor Recreation. Program, activity, or opportunity dependent on 
the natural environment. Examples are hunting, fishing, trapping, 
picnicking, birdwatching, off-road vehicle use, hiking and interpretive 
trails, wild and scenic river use, and underdeveloped camping areas. 
Developed or constructed facilities such as golf courses, tennis courts, 
riding stables, lodging facilities, boat launching ramps, and marinas 
are not included.
    Sustained Yield. Production of renewable natural resources at a 
level when

[[Page 998]]

harvest or consumptive use does not exceed net growth.



Sec. 190.4  Policy.

    (a) The Department of Defense shall act responsibly in the public 
interest in managing its lands and natural resources. There shall be a 
conscious and active concern for the inherent value of natural resources 
in all DoD plans, actions, and programs.
    (b) Natural resources under control of the Department of Defense 
shall be managed to support the military mission, while practicing the 
principles of multiple use and sustained yield, using scientific methods 
and an interdisciplinary approach. The conservation of natural resources 
and the military mission need not and shall not be mutually exclusive.
    (c) Watersheds and natural landscapes, soils, forests, fish and 
wildlife, and protected species shall be conserved and managed as vital 
elements of DoD's natural resources program.
    (d) DoD actions that affect natural resources in the United States 
shall comply with the policy and requirements of 32 CFR part 188 and the 
more stringent of applicable Federal or local laws. DoD actions that 
influence natural resources in foreign countries or global commons shall 
conform to requirements of 32 CFR part 187 applicable laws, treaties, 
and agreements.
    (e) Integrated natural resources management plans that incorporate 
applicable provisions of the Appendix to this part shall be maintained 
for DoD lands.
    (f) DoD decisionmakers and commanders shall keep informed of the 
conditions of natural resources, the objectives of natural resources 
management plans, and potential or actual conflicts between DoD actions 
and management plans and the policies and procedures herein.
    (g) DoD lands shall be available to the public and DoD employees for 
enjoyment and use of natural resources, except when a specific 
determination has been made that a military mission prevents such access 
for safety or security reasons or that the natural resources will not 
support such usage. The determination shall be addressed in the 
applicable natural resources management plan. To assist in the 
management, study, or monitoring of natural resources, Federal, State 
and local officials and natural resources management professionals shall 
be permitted access to natural resources after proper safety and 
security measures are taken.
    (h) The management and conservation of natural resources under DoD 
stewardship is an inherently governmental function. Therefore, 32 CFR 
part 169 does not apply to the management, implementation, planning, or 
enforcement of DoD natural resources programs. However, support to the 
natural resources program when it is severable from management of 
natural resources may be subject to 32 CFR part 169.
    (i) If natural resources under DoD control are damaged by a 
hazardous substance released by another party, that party is potentially 
liable. The funds recovered by the Department of Defense as a result of 
natural resources damage claims shall be used for restoration, 
replacement, or acquisition of equivalent natural resources.
    (j) Enforcement of laws primarily aimed at protecting natural 
resources and recreation activities that depend on natural resources is 
an integral part of a natural resources progam and shall be coordinated 
with or under the direction of the natural resources manager for the 
affected area.
[54 FR 7539, Feb. 22, 1989. Redesignated and amended at 56 FR 64481, 
Dec. 10, 1991]



Sec. 190.5  Responsibilities.

    (a) The Assistant Secretary of Defense (Production and Logistics) 
(ASD(P&L)) shall:
    (1) Establish and monitor implementation of natural resources 
management policies for DoD properties and actions.
    (2) Coordinate the DoD natural resources program with other Federal 
Agencies.
    (3) Maintain the Secretary of Defense Natural Resources Conservation 
Awards Program established herein and described in DoD Instruction 
4700.2 \2\
---------------------------------------------------------------------------

    \2\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.

---------------------------------------------------------------------------

[[Page 999]]

    (4) Designate a chairperson for the DoD Natural Resources Council 
(DNRC) established in paragraph (b) of this section.
    (5) Establish policy and direction for the DoD reserve account 
established by 10 U.S.C. 2665.
    (b) The Director, Defense Research and Engineering, through the 
Deputy Under Secretary of Defense (Research and Advanced Technology) 
(DUSD(R&AT)), shall conduct appropriate research, development, tests, 
and evaluations to support integrated natural resources management 
programs.
    (c) The Heads of the Military Services and Directors of Defense 
Agencies delegated land management responsibilities shall:
    (1) Maintain an organizational capability and program resources 
necessary to establish and maintain integrated natural resources 
management programs as prescribed in this part.
    (2) Maintain at all levels of command the interdisciplinary natural 
resources expertise necessary to implement this program and provide for 
their continued professional training.
    (3) Ensure that effective natural resources management is an 
identifiable function and is specifically accountable in performance 
evaluations at each command level.
    (4) Provide for technical reviews and onsite assessments of 
installations' natural resources programs at least each 3 years by 
natural resources management professionals, take necessary corrective 
actions, and include natural resources programs in management reviews.
    (5) Develop criteria and procedures for cooperative planning and 
integrated natural resources management planning processes.
    (6) Act as trustees for natural resources under their jurisdiction.
    (7) Maintain records necessary to monitor and evaluate natural 
resources under their management and provide requested information to 
the ASD(P&L), other agencies with jurisdiction, and the public.
    (d) The Heads of DoD Components shall coordinate proposals for new 
and continuing actions that affect natural resources with the managers 
of those resources.
    (e) Installation Commanders shall:
    (1) Conduct integrated natural resources management programs to 
comply with this part.
    (2) Enter into cooperative plans that may be developed on behalf of 
the Secretary of Defense pursuant to the Sikes Act.
[54 FR 7539, Feb. 22, 1989. Redesignated and amended at 56 FR 64481, 
Dec. 10, 1991]



Sec. 190.6  Procedures.

    (a) Procedures shall be established by DoD Components to ensure that 
current and planned mission activities (e.g., master planning, 
construction requests, site approval requests, and training exercise 
plans) are effectively coordinated in a timely manner with appropriate 
natural resources managers.
    (b) The DNRC shall advise the ASD(P&L) regarding natural resources 
issues and shall meet at least quarterly. DoD Components shall 
participate to carry out this Directive and goals of the DoD natural 
resources program. The Heads of the Military Services each shall appoint 
one representative and one alternate to the DNRC. The DNRC shall:
    (1) Provide technical support to the ASD(P&L) in natural resources 
areas.
    (2) Recommend policy and program improvements.
    (3) Assist in conducting the Secretary of Defense Natural Resources 
Conservation Awards Program.
    (4) Coordinate the natural resources management program among DoD 
Components.
    (5) Conduct periodic natural resources conferences or training 
opportunities for DoD employees.
    (6) Identify and coordinate natural resources research activities 
and needs and present them to the DUSD(R&AT) each year.



Sec. 190.7  Information requirements.

    Information requirements of the ASD(P&L) shall be met by the Heads 
of the Military Services each year by January 15 under Report Control 
Symbol DD-P&L(A)1485.

[[Page 1000]]

            Appendix--Integrated Natural Resources Management

                         A. Integrated Planning

    1. Integrated natural resources management plans shall be maintained 
for properties under DoD control. These plans shall guide planners and 
implementors of mission activities as well as natural resources 
managers.
    2. The plans shall be coordinated with appropriate Federal, State, 
and local officials with interest or jurisdiction in accordance with 32 
CFR part 243 and with planners of DoD activities that impact on the 
natural resources. Conversely, new and continuing mission activities 
that impact on natural resources shall be coordinated with appropriate 
natural resources managers.
    3. Natural resources management plans shall be continually 
monitored, reviewed annually, and revised by DoD natural resources 
management professionals. They shall be approved in accordance with DoD 
Components' procedures at least every 5 years.
    4. The natural resources management planning process shall invite 
public participation.
    5. An integrated natural resources management plan shall meet the 
following criteria:
    a. Natural resources and areas of critical or special concern are 
adequately addressed from both technical and policy standpoints.
    b. The natural resources management methodologies shall sustain the 
capabilities of the natural resources to support military requirements.
    c. The plan includes current inventories and conditions of natural 
resources; goals; management methods; schedules of activities and 
projects; priorities; responsibilties of installation planners and 
decisionmakers; monitoring systems; protection and enforcement systems; 
and land use restrictions, limitations, and capabilities.
    d. Each plan segment or component (i.e., land, forest, fish and 
wildlife, and outdoor recreation) exhibits compatible methodologies and 
goals.
    e. The plan is compatible with the installation's master plan and 
pest management program under DoD Directive 4150.7.\1\
---------------------------------------------------------------------------

    \1\ Copies may be obtained, at cost, from the National Technical 
Information Service, 5285 Port Royal Road, Springfield, VA 22161.
---------------------------------------------------------------------------

    6. A determination that the public may not have access to use 
natural resources under DoD control shall be included and explained in 
the applicable integrated natural resources management plan.
    7. The environmental impact analysis for any proposed activity or 
project shall include an analysis of the compatibility of the proposal's 
impacts with affected natural resources management plans and objectives. 
Only after necessary revisions to management plans are made shall the 
new activity begin.
    8. The planning requirements of DoD Directive 4710.1 \2\ may be met 
within the integrated natural resources plan.
---------------------------------------------------------------------------

    \2\ See footnote 2 to paragraph A.5.e.
---------------------------------------------------------------------------

    9. Integrated natural resources management plans shall be a primary 
consideration during the master planning process and for land use and 
development decisions.

                  B. Natural Resources Management Plan

    The integrated natural resources plan shall implement the following 
policies and requirements for each applicable program area:

                           1. Land Management

    a. DoD lands shall be managed to support military activities, 
improve the quality of land and water resources, protect wetlands and 
floodplains and their functions, abate nonpoint sources of water 
pollution, conserve lands suitable for agriculture, control noxious 
weeds, and control erosion.
    b. Costs for maintaining grounds shall be minimized by providing the 
least amount of mowed areas and special plantings necessary to 
accomplish management objectives and by the use of low maintenance 
species, agricultural outleases, wildlife habitat, and tree plantings.
    c. Land management is an important use of appropriated funds. Also, 
pursuant to 10 U.S.C. 2667(d) revenues from the agriculture and grazing 
outlease program are available for:
    (1) Administrative expenses of agricultural leases.
    (2) Initiation, improvement, and perpetuation of agricultural 
outleases.
    (3) Preparation and revisions of natural resources management plans.
    (4) Implementation of integrated natural resources management plans.
    d. When appropriate, land management plans shall address soils, 
water resources, soil and water conservation, wetlands and floodplains, 
grounds maintenance, landscaping, agricultural uses and potential, fire 
management, rangeland conditions and trends, areas of special interest, 
and management for multiple use.
    e. Soil capabilities, water management, landscaping, erosion 
control, and conservation of natural resources shall be included in all 
site feasibility studies and in project planning, design, and 
construction. Appropriate conservation work and associated costs shall 
be included in project proposals and construction contracts and 
specifications. Such studies and work shall be coordinated with 
appropriate natural resources management professionals and plans.

[[Page 1001]]

    f. Irrigation shall be limited to areas where it is essential to 
establish and maintain required vegetation or when an agricultural 
outlease contract allows it.
    g. Appropriate natural resources conservation measures shall be 
included in outlease provisions.
    h. Landscaping shall be functional in nature, simple and informal in 
design, compatible with adjacent surroundings, and complimentary to the 
overall natural setting of the area.
    i. Land conditions, soil capability, and erosion status shall be 
monitored for all lands subject to disturbance (e.g., maneuver areas, 
commercial forest areas, and agricultural outleased areas). The data and 
analyses obtained shall be used in planning, environmental analyses, and 
decisionmaking at all levels of command.

                          2. Forest Management

    a. DoD forest lands shall be managed for sustained yield of quality 
forest products, watershed protection, wildlife habitat, and other uses 
that can be made compatible with mission activities.
    b. Commercial forestry activities shall be commensurate with 
potential financial returns.
    c. Forest products shall not be given away, abandoned, carelessly 
destroyed, used to offset costs of contracts, or traded for products, 
supplies, or services. Forest products may be used for military 
training. Individuals may be allowed to collect noncommercial or edible 
forest products if that use is addressed in the management plan for the 
areas involved. Forest products may be harvested to generate electricity 
or heat only if the Military Department's forestry account is paid fair 
market value.
    d. Planned forest products sales shall continue on land reported as 
excess until actual disposal or transfer occurs. When forested areas are 
slated to be public parks or used for outdoor recreation, clearcutting 
is prohibited. However, thinning, intermediate cuttings, and salvage 
cuttings shall be accomplished if the management plan calls for such 
activity within the next 5 years. That portion of the proceeds from 
sales of land that is attributable to the value of standing timber on 
the land sold shall be deposited in the Military Department's forestry 
account.
    e. Accounting and reporting for the proceeds and costs of the 
commercial forestry program are contained in DoD Instruction 7310.5.\3\ 
Costs associated with management of all forested areas (noncommercial 
and commercial) are valid uses of appropriated funds as well as proceeds 
from agricultural outleases and forest product sales.
---------------------------------------------------------------------------

    \3\ See footnote 2 to paragraph A.5.e.
---------------------------------------------------------------------------

    f. When appropriate, natural resources management plans shall 
include current forest inventories, conditions, trends, and potential 
uses; analysis of soil data for forest potential; goals; protection and 
enforcement methods; maintenance of forested areas and access roads; 
improvement methods; harvesting and reforestation methods and schedules; 
and management for multiple use.

                     3. Fish and Wildlife Management

    a. Lands and waters suitable for management of fish and wildlife 
resources shall be managed to conserve wildlife resources for the 
benefit of the public. Nongame as well as game species shall be 
considered when planning activities.
    b. Endangered and threatened species and their habitats shall be 
protected and managed according to the Endangered Species Act and 
implementing U.S. Fish and Wildlife Service (FWS) regulations and 
agreements. Management plans for installations with endangered species 
shall include:
    (1) Coordinated protection and mitigation measures.
    (2) Appropriate affirmative methods and procedures necessary to 
enhance the population of endangered species.
    (3) Procedures and responsibilities for consulting with the FWS 
prior to funding or conducting any action likely to affect a listed 
species or its critical habitat.
    c. The Sikes Act provides a mechanism whereby the Departments of 
Defense and the Interior and host States cooperate to plan, maintain, 
and manage fish and wildlife on military installations. Agreement by all 
3 parties regarding the fish and wildlife management plan for an 
installation makes that plan a cooperative plan pursuant to 16 U.S.C. 
670 et seq. A cooperative plan shall be adopted by an installation 
commander only after ensuring its compatibility with the rest of the 
integrated natural resources management plan.
    d. Hunting, fishing, and trapping may be permitted within the 
carrying capacity of wildlife habitats. Harvesting of wildlife from DoD 
installations or facilities shall be done according to the fish and game 
laws of the State or territory in which it is located and under 10 
U.S.C. 2671. Special permits shall be issued, in addition to required 
State and Federal permits or licenses, for fishing, hunting, or trapping 
on DoD property.
    e. Hunting, fishing, and trapping fees may be collected under the 
authority of the Sikes Act to recover expenses of implementing a 
cooperation plan. The same Sikes Act fee shall be charged for a 
particular use to all users at a particular installation except senior 
citizens, children, and the physically handicapped. Exceptions to this 
policy may be granted by the Heads of Military Services. Additional 
recreation fees may be collected

[[Page 1002]]

under policies in DoD Directive 1015.6 \4\ and DoD Instruction 
1015.2.\5\
---------------------------------------------------------------------------

    \4\ See footnote 2 to paragraph A.5.e.
    \5\ See footnote 2 to paragraph A.5.e.
---------------------------------------------------------------------------

    f. Criteria and procedures for hunting, fishing, and trapping 
permits and fees shall be included in management plans. Fees collected 
under the authority of 16 U.S.C. 670 et seq. shall be used only to 
defray the costs of the fish and wildlife management program at the 
installation collecting the fees. Collected fees shall be accounted for 
and reported according to instructions from the Comptroller, Department 
of Defense (C, DoD), under a special fund entitled ``Wildlife 
Conservation''--X5095. Unobligated balances shall be accumulated with 
current fee collections, and the total amount accumulated at an 
installation shall be available for obligation as apportioned by the 
Office of Management and Budget (OMB).
    g. Whenever hunting, fishing, or trapping is allowed on DoD 
installations, enforcement of wildlife laws shall be addressed in the 
fish and wildlife management plan and carried out by trained enforcement 
officials under the direction of or in coordination with the wildlife 
manager.
    h. The suitability of a military installation for fish and wildlife 
management shall be determined after consulting with the FWS and host 
State. Each installation shall be classified as one of the following:
    (1) Category I--Installations with land and water resources suitable 
for fish and wildlife conservation. Each Category I installation shall 
maintain a wildlife management plan according to this part.
    (2) Category II--Installations that lack adequate land and water 
resources for feasible fish and wildlife conservation.
    i. The number of users of fish and wildlife resources may be limited 
on a daily or seasonal basis. Membership in an organization, including 
rod and gun clubs, shall not be a prerequisite for or get priority in 
receiving permits.
    j. Habitat management is the basic means of improving wildlife 
resources. Introduction and reintroduction of species shall occur only 
in coordination with appropriate agencies and in accordance with a 
cooperative plan. When predator or animal damage control is a necessary 
part of natural resources management or mission performance, it shall be 
accomplished according to the cooperative plan, relevant laws and 
regulations, and in coordination with adjoining land managers.
    k. Fish and wildlife conservation shall be considered in all site 
feasibility studies and project planning, design, and construction. 
Appropriate conservation work and associated funding shall be included 
in project proposals and construction contracts and specifications.
    l. Priority shall be given to entering into contracts for services 
that implement wildlife management or enforce wildlife laws with Federal 
and State Agencies with responsibility for wildlife conservation.
    m. Where appropriate, natural resources management plans shall 
address habitat management and enhancement, current wildlife and fish 
inventories and population trends, endangered and other special species 
management, game and nongame species management, access policy and user 
program, administration of user fee program, law enforcement, 
cooperating agencies' responsibilities, and multiple use management.

                          4. Outdoor Recreation

    a. Whenever practicable, DoD lands with suitable resources shall be 
managed to conserve and use natural resources for the outdoor recreation 
opportunities of present and future generations. The policies and 
procedures herein apply to outdoor recreation programs as defined in 
Sec. 190.3 and supersedes those in DoD Directive 1015.6 and DoD 
Instruction 1015.2.
    b. Conservation of outdoor recreation resources shall be considered 
in all plans, programs, site feasibility studies, and project planning 
and design.
    c. Installations having resources suitable for outdoor recreation 
other than hunting, fishing, and trapping are encouraged to develop 
cooperative agreements or plans with other Federal Agencies and 
appropriate State Agencies to facilitate the development and management 
of those programs.
    d. Public access to DoD properties for outdoor recreation shall be 
allowed whenever compatible with public safety and mission activities. 
User fees may be collected to recover expenses of managing natural 
resources for outdoor recreation, and access quotas may be established 
to reflect the carrying capacity of the areas involved. Public outdoor 
recreation opportunities shall be equitably distributed by impartial 
procedures, such as a first-come, first-served basis or by drawing lots. 
When public access must be withheld, that determination shall be 
explained in the natural resources management plan.
    e. Off-road vehicle use shall be managed to protect natural 
resources, promote safety, and avoid conflicts with other uses of DoD 
properties. Use of off-road vehicles shall be monitored and evaluated 
regularly by natural resources management professionals. All land and 
water areas shall be closed to such use unless an environmental impact 
analysis in accordance with 32 CFR part 188 has been completed and the 
use is specifically approved and regulated. Specific areas that

[[Page 1003]]

shall not be used by recreational off-road vehicles are those:
    (1) Restricted for security or safety purposes.
    (2) Containing fragile geological and soil conditions, flora or 
fauna, or other natural characteristics.
    (3) With significant archeological, historical, paleontological 
resources.
    (4) Designated as wilderness or scenic areas.
    (5) Where noise would adversely affect other users, wildlife, or 
adjacent communities.
    f. Whenever appropriate, outdoor recreation plans shall address 
inventories, trends, and management of resources suitable for outdoor 
recreation; aesthetics; development of opportunities and potential uses; 
potential user groups and access policy; user fee program; user ethics 
programs; and multiple use management.

                            5. Special Areas

    Areas on DoD installations that contain natural resources that 
warrant special conservation efforts shall be identified. After 
appropriate study and coordination, such areas may be designated as 
Special Interest Areas. Upon such designation, the integrated natural 
resources management plan for the installation shall address the special 
management necessary for the area.
[54 FR 7539, Feb. 22, 1989. Redesignated and amended at 56 FR 64481, 
Dec. 10, 1991]
[[Page 1005]]


                              FINDING AIDS




  --------------------------------------------------------------------

  


----------------------------------------------------------------------
  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.
  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected



[[Page 1007]]



                    Table of CFR Titles and Chapters




                      (Revised as of June 29, 1998)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)

[[Page 1008]]

      XXII  Federal Deposit Insurance Corporation (Part 3201)
     XXIII  Department of Energy (Part 3301)
      XXIV  Federal Energy Regulatory Commission (Part 3401)
       XXV  Department of the Interior (Part 3501)
      XXVI  Department of Defense (Part 3601)
    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
       LXI  National Labor Relations Board (Part 7101)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture

[[Page 1009]]

         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
      XIII  Northeast Dairy Compact Commission (Parts 1300--1399)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]

[[Page 1010]]

    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
        XI  United States Enrichment Corporation (Parts 1100--
                1199)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)

[[Page 1011]]

       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)

[[Page 1012]]

      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)

[[Page 1013]]

        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

[[Page 1014]]

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--deral 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)

[[Page 1015]]

        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Part 1200)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)

[[Page 1016]]

      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)
       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense

[[Page 1017]]

       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

[[Page 1018]]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)

[[Page 1019]]

            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

[[Page 1020]]

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Transportation (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

[[Page 1021]]

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  United States Agency for International Development 
                (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)

[[Page 1022]]

        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)

[[Page 1023]]

        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 1025]]





           Alphabetical List of Agencies Appearing in the CFR




                      (Revised as of June 29, 1998)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development, United      22, II
     States
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
   Compliance Board
[[Page 1026]]

Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Corporation for National and Community Service    45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII

[[Page 1027]]

  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Enrichment Corporation, United States             10, XI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII

[[Page 1028]]

Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration                   5, LVII
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
     of Certain Employees
[[Page 1029]]

  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II

[[Page 1030]]

  Mines, Bureau of                                30, VI
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
  International Development, United States        22, II; 48, 7
       Agency for
  Overseas Private Investment Corporation         5, XXXIII; 22, VII
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                5, XXVIII; 28, I
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             4, II
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training, Office of    41, 61; 20, IX
       the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
Management and Budget, Office of                  5, III, LXXVII; 48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II

[[Page 1031]]

Mines, Bureau of                                  30, VI
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National and Community Service, Corporation for   45, XII, XXV
National Council on Disability                    34, XII
National Credit Union Administration              12, VII
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Dairy Compact Commission                7, XIII
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office                       37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
     Acquisition Regulation
[[Page 1032]]

  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Commission on the Assignment of      32, XXIX
     Women in the Armed Forces
Presidential Documents                            3
Prisons, Bureau of                                28, V
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Depositor Protection Oversight Board       12, XV
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II; 49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A

[[Page 1033]]

  Surface Transportation Board                    49, X
Transportation, Office of                         7, XXXIII
Temporary Duty (TDY) Travel Allowances            41, 301
Treasury Department                               5, XXI; 17, IV
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S., Scholarship Foundation          45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
United States Enrichment Corporation              10, XI
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training, Office of the  41, 61; 20, IX
     Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 1035]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
1986, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 1986, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, and 1973-1985'', published in seven 
separate volumes.

                                  1986

32 CFR
                                                                   51 FR
                                                                    Page
Chapter I
43  Revised.........................................................7552
54  Revised........................................................23755
    Revised........................................................23755
145  Added.........................................................17178
73  Added..........................................................35512
76  Revised........................................................44462
90.3  (b) amended..................................................28092
90.6  Enclosure 1 amended...................................28092, 32308
99  Added..........................................................42555
110  Revised.......................................................26886
150  Revised.......................................................42557
155.8  Revised.....................................................23757
165.1401  (d) and (e) added........................................42562

                                  1987

32 CFR
                                                                   52 FR
                                                                    Page
Chapter I
40  Revised........................................................23268
40.3  Amended......................................................29844
40.4  (b)(3)(iii) (B) and (C) and (iv) added.......................29844
40.6  (d)(2)(iii) (A), (B), and (C) amended........................29844
40.7  (b)(4)(iv), (c), and (d) added...............................29844
40.14  (a) amended.................................................29845
40a  Added.........................................................23298
      Revised......................................................48431
41  Appendix A amended.............................................46997
43.2  (a) amended...........................................17951, 25008
43.6  (d)(14) amended..............................................17951
    (d)(14) revised................................................25008
45.3  (b)(2), (c)(2), and (e)(1)(v) revised; (d)(5) and (g) 
        amended....................................................41706
45.4  (d)(1) amended...............................................41706
45.5  Amended......................................................41706
59  Revised........................................................34215
63.3  (o) amended..................................................25215
63.6  (b)(5) (i) through (iv) amended; (b)(5)(v) through (vii) and 
        (e)(2) introductory text revised; (e)(2)(vi) redesignated 
        as (e)(2)(vii); new (e)(2)(vi) added.......................25215
68  Added..........................................................44389
72  Added..........................................................41707
98  Added..........................................................44883
102  Revised.......................................................48999
154  Added.........................................................11219
165  Removed.......................................................34639
166  Authority citation revised.....................................3634
    Removed........................................................23298
166.11  Revised.....................................................3634
174.1  (d) and (e) amended.........................................29181
174.3  (b), (c) and (f) amended; (d) and (e) revised...............29181
    (f) corrected..................................................30766
174.4  (c) revised.................................................29182
174.5  (b) and (d) revised.........................................29182
174.6  (a) revised.................................................29182

                                  1988

32 CFR
                                                                   52 FR
                                                                    Page
Chapter I
40a  Revised.......................................................52134

[[Page 1036]]

40a.1  Amended......................................................9317
45.3  (e)(1)(iii) amended...........................................1342
45.5  Revised.......................................................1342
58  Added..........................................................52693
65  Revised........................................................48898
68  Heading revised................................................49981
68.6  (d) through (f) redesignated as (e) through (g); (c) 
        redesignated in part as (d)................................49982
72  Added; final...................................................22648
85  Added..........................................................33123
95  Added..........................................................45085
104  Revised........................................................1343
105  Added.........................................................15205
114  Revised.......................................................20844
144  Added.........................................................23759
159  Revised.......................................................44877
173  Added; interim................................................28637
173.1  (a) corrected...............................................30839
    Revised........................................................42948

                                  1989

32 CFR
                                                                   54 FR
                                                                    Page
Chapter I
45  Revised.........................................................7409
    Appendix A revised..............................................9985
47  Revised........................................................39993
51  Removed........................................................36304
    Added..........................................................46227
52  Removed........................................................36304
65  Appendix added...................................................973
67  Revised........................................................11945
80  Added..........................................................13369
83  Removed........................................................36304
146  Added; interim..................................................298
    Regulation at 54 FR 298 confirmed...............................7539
159a  Added........................................................26959
    Appendix A amended.............................................31334
159a.57  (d) correctly designated..................................46610
169  Revised.......................................................13373
169.4  (e) corrected...............................................21726
170  Removed.......................................................36304
172  Added.........................................................35483

                                  1990

32 CFR
                                                                   55 FR
                                                                    Page
Chapter I
40a  Revised...................................................23, 53301
146.6  (a) introductory text amended...............................34555
64  Revised.........................................................9319
168a  Added........................................................29844
98a  Added..........................................................4999
154.16  (c) removed; (d) through (i) redesignated as (c) through 
        (h).........................................................3223
172  Appendix B revised............................................13903

                                  1991

32 CFR
                                                                   56 FR
                                                                    Page
Chapter I
1--39 (Subchapter A)  Heading removed..............................27901
1--39  Removed.....................................................14643
40a  Revised.......................................................66359
40b  Added..........................................................6565
58  Revised........................................................15281
69  Removed........................................................19577
93  Added; interim.................................................51328
114  Revised.......................................................18699
162  Added.........................................................50271
163  Removed.......................................................43871
    Subchapter L  Heading added....................................60062
164  Removed.......................................................15499
168  Removed.......................................................19577
169a.17  (h)(i) introductory text and (h)(i)(1) redesignated as 
        (h)(1) introductory text and (h)(1)(i); second (h) through 
        (j) redesignated as (i) through (k)........................27901
187  Redesignated from part 197; authority citation revised........64481
187.1  Amended.....................................................64481
187.5  (d)(1) amended..............................................64481
187.6  Amended.....................................................64481
187  Enclosure 1 amended...........................................64481
188  Removed.......................................................19577
    Redesignated from part 214; authority citation revised.........64481
188.6  Amended.....................................................64481
189  Redesignated from part 235....................................64481
190  Redesignated from part 265....................................64481
190.1  (a) amended.................................................64481
190.4  (d) amended.................................................64481
190.5  (a)(3) amended..............................................64481
190  Appendix amended..............................................64482

[[Page 1037]]

                                  1992

32 CFR
                                                                   57 FR
                                                                    Page
Chapter I
25--33 (Subchapter B)  Heading added................................6199
25  Redesignated from part 280......................................6199
25.100  (b)(3) amended..............................................6199
25.110  (b) amended.................................................6199
25.200  (a) and (b) amended.........................................6199
25.205  Amended.....................................................6200
25.210  Amended.....................................................6200
25.215  Amended.....................................................6200
25.220  (b) amended.................................................6200
25.225  Amended.....................................................6200
25.300  Amended.....................................................6200
25.305  Introductory text, (c)(2), (4) and (5) amended..............6200
25.310  Amended.....................................................6200
25.312  (c) and (d) amended.........................................6200
25.314  (d)(1)(iv) amended..........................................6200
25.320  (a)(2) and (b) amended......................................6200
25.325  (a)(2) amended..............................................6200
25.400  (a) and (b)(1) amended......................................6200
25.405  (a) introductory text, (1) and (2) amended..................6200
25.410  (b) amended.................................................6200
25.411  (d) and (f) amended.........................................6200
25.413  Introductory text amended...................................6200
25.420  Amended.....................................................6200
25.505  (a) and (b) amended.........................................6200
25.605  (a) amended.................................................6200
25.615  (a) amended.................................................6200
25.620  (a) introductory text and (b) amended.......................6200
28  Redesignated from part 282......................................6199
28.200  (a) amended.................................................6200
28.205  (a) amended.................................................6200
28.300  (a) and (b) amended.........................................6200
33  Redesignated from part 278......................................6199
33.4  (a) introductory text and (b) amended.........................6200
33.5  Amended.......................................................6200
33.21  (g)(2) amended...............................................6200
33.24  (b)(4) and (e)(2)(ii) amended................................6200
33.25  (e) and (f) amended..........................................6200
33.26  (c) amended..................................................6200
33.30  (b), (d)(4) and (f)(2) amended...............................6200
33.32  (c)(3) and (g)(2) amended....................................6201
33.36  (c)(1) introductory text, (d)(2) introductory text and 
        (f)(3) amended..............................................6201
33.37  (a)(3), (c)(1), (2), (3) and (4) amended.....................6201
33.41  (b) introductory text, (d)(3), (e)(1)(i), (ii), (2)(i), 
        (ii), (iii) and (3) amended.................................6201
33.42  (a)(2) amended...............................................6201
33.43  (d) amended..................................................6201
33.44  Introductory text and (b) amended............................6201
33.50  (b)(5) amended...............................................6201
33.51  (c), (d) and (e) amended.....................................6201
40--146 (Subchapter B)  Redesignated as subchapter C................6199
60  Removed........................................................40849
67  Removed........................................................48188
102  Revised........................................................3541
150--152 (Subchapter C)  Redesignated as subchapter D...............6199
154--159a (Subchapter D)  Redesignated as subchapter E..............6199
155  Revised........................................................5383
    Effective date corrected........................................7878
160--173 (Subchapter E)  Redesignated as subchapter F...............6199
165  Added; interim................................................29620
169a  Authority citation revised...................................29207
169a.1  Footnote 1 revised; eff. 7-8-92............................29207
169a.2  Revised; eff. 7-8-92.......................................29207
169a.3  Amended; eff. 7-8-92.......................................29207
169a.4  Revised; eff. 7-8-92.......................................29207
169a.8  Heading and (a) amended; (c) revised; eff. 7-8-92..........29208
169a.9  (a) introductory text, (1) introductory text and (i) 
        revised; (a)(1)(ii), (iv), (2)(i)(A) and (B), and (ii)(D) 
        amended; eff. 7-8-92.......................................29208
169a.10  Revised; eff. 7-8-92......................................29208
169a.11  Amended; eff. 7-8-92......................................29208
169a.13  Foodnote 8 removed; eff. 7-8-92...........................29207
    Revised; eff. 7-8-92...........................................29208
169a.15  (a), (b), (d)(1), (2)(ii)(A) and (iii), and (4)(i)(E) 
        revised; (c)(3), (d)(2)(i), (v), (3)(viii), (4)(i)(C), 
        (F), and (H), (ii)(A), (D)(2) and (3), and (E) 
        introductory text amended; eff. 7-8-92.....................29208
169a.16  (a) and (b) amended; eff. 7-8-92..........................29210
169a.17  (a), (d), and (g)(1) revised; (l) added; eff. 7-8-92......29210

[[Page 1038]]

169a.18  (b) revised; eff. 7-8-92..................................29210
169a.21  (a), (b) heading and (1), (c) introductory text, (1), 
        (2), (5), (6), and (7) amended; (c)(3) revised; eff. 7-8-
        92.........................................................29210
169a.22  Revised; eff. 7-8-92......................................29210
169a  Appendixes A and B amended; eff. 7-8-92......................29210
    Appendix C revised; eff. 7-8-92................................29212
    Appendix D amended; eff. 7-8-92................................29212
    Appendix E removed; eff. 7-8-92................................29218
174--179 (Subchapter F)  Redesignated as subchapter G...............6199
174  Removed.......................................................22429
179  Removed.......................................................48188
185--186 (Subchapter G)  Redesignated as subchapter H...............6199

                                  1993

32 CFR
                                                                   58 FR
                                                                    Page
Chapter I
40  Revised; interim...............................................47624
    Heading revised................................................51780
40a  Revised.........................................................239
50  Removed........................................................27205
77  Removed........................................................27205
80  Removed........................................................27205
    Added; interim.................................................51997
82  Removed........................................................21927
86  Added; interim.................................................52010
92  Removed........................................................13550
95.3  Amended......................................................63294
95  appendix A amended.............................................63294
138  Removed.......................................................27205
154  Authority citation revised....................................61024
154.2  Amended.....................................................61024
154.3  (f) and (h) amended; (o) removed; (p) through (ee) 
        redesignated as (o) through (dd); (e) and new (q) revised 
                                                                   61024
154.43  Revised....................................................61025
154.48  (a), (b) and (d) amended...................................61025
154.49  (c) revised................................................61025
154.55  (c) revised; (d) amended...................................61025
154.56  (b)(1) amended.............................................61025
154.60  (d)(2) revised.............................................61025
154.61  (b)(2) and (d) revised; (e)(2) amended.....................61026
154.76  (a) and (c) amended........................................61026
154.77  Revised....................................................61026
154  Appendixes A, D and H amended; appendix G removed.............61026
156  Revised.......................................................42855
165  Revised.......................................................16497
177  Removed.......................................................27205
185  Revised.......................................................52667

                                  1994

32 CFR
                                                                   59 FR
                                                                    Page
Chapter I
40a  Revised........................................................1646
62a  Removed.......................................................65478
77  Added..........................................................40809
80  Revised........................................................37680
83  Added..........................................................13212
84  Added..........................................................13214
88  Added..........................................................14559
90  Removed........................................................10988
    Added; interim.................................................16126
    Regulation at 59 FR 16126 comment period extended..............34382
    Hearing.................................................35463, 36367
90.4  (a)(1)(iii) removed; (b) revised; interim....................53739
91  Removed........................................................13212
    Added; interim.................................................16127
    Regulation at 59 FR 16127 comment period extended..............34382
    Hearing.................................................35463, 36367
91.4  Revised; interim.............................................53739
91.7  (d) removed; (e) and (f) revised; interim....................53740
92  Added..........................................................42752
98a  Removed.......................................................42752
104  Removed.......................................................49818
155  Authority citation revised....................................48565
155.1  Amended.....................................................48565
155.2  (c) amended.................................................35464
155.4  (c) introductory text amended...............................48565
155.5  (b)(2), (3), (7) through (10), (12), (14), (15), (19), (c) 
        and (d) amended............................................35464
155.6  (b) introductory text and (3) amended.......................35464
155  Appendix A amended.....................................35464, 48565

                                  1995

32 CFR
                                                                   60 FR
                                                                    Page
Chapter I
23  Added; interim..................................................4545

[[Page 1039]]

25  Authority citation revised; eff. 8-25-95.......................33053
25.100  Revised; eff. 8-25-95...............................33040, 33053
25.105  Amended; eff. 8-25-95...............................33041, 33053
25.110  (c) revised; eff. 8-25-95...........................33041, 33053
25.200  Revised; eff. 8-25-95...............................33041, 33053
25.215  Revised; eff. 8-25-95...............................33041, 33053
25.220  Revised; eff. 8-25-95...............................33041, 33053
25.225  Revised; eff. 8-25-95...............................33041, 33053
25.610  (b)(1) added; eff. 8-25-95.................................33053
25.616  Added; eff. 8-25-95........................................33053
25  Appendixes A and B revised; eff. 8-25-95................33042, 33053
33.36  (d), (g), (h) and (i) revised........................19639, 19643
40a  Revised........................................................8936
43a  Removed........................................................1720
67  Added; interim.................................................54302
83.1  (c) amended..................................................20029
84  Footnotes 14 through 26 redesignated as Footnotes 15 through 
        27.........................................................20030
84.4  (a)(1) and (4) amended.......................................20029
84.7  (c)(1) introductory text, (iii), and (3) amended; (c)(1)(ii) 
        revised; (c)(1)(iv) added..................................20029
84.9  (b), (k)(1)(vi), (2), (l)(1) introductory text and (ii) 
        amended; (l)(1)(vi), (viii) and (m) introductory text 
        revised....................................................20029
84.10  (a)(2) introductory text, (b) and (g)(5) amended; Footnote 
        12 removed; (a)(2)(ii) and Footnote 13 redesignated as 
        (a)(2)(iii) and Footnote 12; (a)(3) and (h)(3) revised; 
        new (a)(2)(ii) added.......................................20030
84.16  (j)(1) removed; (j)(2), (3) and (4) redesignated as (j)(1), 
        (2) and (3)................................................20030
84.17  Amended.....................................................20030
84.18  Revised.....................................................20030
84.21  Heading and (g)(2)(iv) revised; (a)(1)(iv) amended..........20031
84.22  (a)(2) redesignated as (a)(2)(i); (a)(2)(ii) added..........20031
84.23  (a) introductory text amended; (d)(1) and (2) revised.......20031
84.33  (a) introductory text revised; (a)(1)(i) designation, (ii) 
        and (3) removed; (a)(1)(A), (B) and (C) redesignated as 
        (a)(1)(i), (ii) and (iii); new (a)(1)(ii) and (2) amended 
                                                                   20032
84.36  (d)(1), (2) and (3) revised.................................20032
84.38  (c)(2) amended..............................................20032
84  Appendix A amended.............................................20032
90  Revised........................................................37341
91  Revised........................................................37341
92  Added; interim.................................................40280
    Removed........................................................46020
112  Added..........................................................1720
113  Added..........................................................1722
    Heading revised.................................................8940
113.2  Heading revised..............................................8941
169a.19  Added.....................................................67328
169a.21  (a), (b), (c)(2), (3) and (5) amended; (c) introductory 
        text revised...............................................67329
169a  Appendixes B, C and D amended................................67329

                                  1996

32 CFR
                                                                   61 FR
                                                                    Page
Chapter I
23  Revised.........................................................9345
40a  Revised.......................................................16704
40b  Removed; interim................................................541
66  Removed........................................................37386
69  Added; interim...................................................271
    Revised........................................................60563
90  Redesignated as Part 174.......................................54097
91  Redesignated as Part 175.......................................54097
92  Correctly added; CFR correction................................55567
    Redesignated as Part 176.......................................56896
95  Removed........................................................26102
174-175 (Subchapter G)  Heading revised............................54097
174  Redesignated from Part 90.....................................54097
175  Redesignated from Part 91.....................................54097
175.1  Amended.....................................................54097
175.6  (b) amended.................................................54097
175.7  (f)(1) amended..............................................54098
176  Redesignated from Part 92.....................................56896
176.15  (b) amended................................................56896
176.20  (a), (c) introductory text, (1)(i), (3)(i), (ii)(C) and 
        (5) amended................................................56896

[[Page 1040]]

176.30  (b)(3)(i), (5) and (c) amended.............................56896
176.35  (b)(4)(i), (c)(1) and (2) amended..........................56896
176.40  (a) introductory text amended..............................56897
176.45  (b) and (c) amended........................................56897

                                  1997

32 CFR
                                                                   62 FR
                                                                    Page
Chapter I
2  Added...........................................................17549
    (Subchapter A) Heading added...................................40734
33.26  (a), (b) introductory text and (1) revised...........45939, 45943
57  Revised.........................................................2566
67  Revised........................................................55517
150  Revised........................................................2017
175.3  (l) added...................................................66525
175.4  Revised.....................................................66525
175.5  Revised.....................................................66525
175.6  Revised.....................................................66525
175.7  (a)(13)(i) and (d)(3)(i) revised; (k) added.................66525
176  Revised.......................................................35346

                                  1998

   (Regulations published from January 1, 1998, through July 1, 1998)

32 CFR
                                                                   63 FR
                                                                    Page
Chapter I
Subchapter B Heading  revised......................................12160
21  Added..........................................................12160
22  Added..........................................................12164
23  Removed........................................................12188
28.500  Revised....................................................12188
32  Added..........................................................12188
34  Added..........................................................12204
40a  Removed.......................................................11831
104  Added..........................................................3466
147  Added..........................................................4573
148  Added..........................................................4580
149  Added..........................................................4583