LETTER TO HONORABLE WILLIAM E. COLBY FROM ELI T. REICH

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82M00531R000800010030-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 27
• Document Creation Date: December 16, 2016
• Document Release Date: March 7, 2005
• Sequence Number: 30
• Publication Date: October 18, 1973
• Content Type: LETTER

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OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE
wacN1Hr ow n e inane
Honorable William E. Colby
.Director, Central Intelligence
Central Intelligence Agency
Washington. D. C. 20505
Dear Mr. Colby:
DCIJI7_1~ /,) o~ I
18 OCT 1973
Attached for your information is a memorandum for the Assistant Secre-
taries (I&L) of the Army, Navy, Air Force and Directors of interested
agencies of the Department of Defense requesting their comments and
recommendations on complete revisions to the industrial priorities
regulations and orders of the Bureau of Competitive Assessment and
Business Policy (BCABP) of the Department of Commerce.
As the head of an associated agency of the Department of Defenses, you
currently are utilizing industrial priorities and allocations in your
procurement under a delegation of authority from the Department of
Defense. It would be appreciated, therefore, if you would furnish your
comments and recommendations on the attached proposed BCABP
regulations and orders to this office by 12 November 1973.
Please have a member of your staff furnish the name and telephone
number of a representative knowledgeable in industrial priorities and
allocations to serve as your point of contact for this area to Mr.
M. S. Friedman, Directorate for Management Evaluation and Materiel
Control, OASD(I&L), telephone OX 7-0351.
Sincerely,
(Signed)
ELI T. REICH
Vice Admiral, USN
DePut '- AS s i:;tar;t Secretary of Defense
(Prodiac tic ii,L,zxgiz e:eriaig & Materiel Acquisition)
Attachments
As stated
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OI:FICE OF THE ASSISTANT SECRETARY OV DEFENSE
WASHINGTON, D. C. 20301
18 O CT 1973
MEMORANDUM FOR. Assistant Secretary of the Army (I&L)
Assistant Secretary of the Navy (I&L)
Assistant Secretary of the Air Force (I&L)
Director, Defense Communications Agency
Director, Defense Mapping Agency
Director, Defense Nuclear Agency
Director, Defense Supply Agency
Director, National Secarity Agency
SUBJECT: Complete Revision of Proposed Regulations and Orders
Governing Use of Priorities and Allocations for Defense
Production and Procurement
The Department of Commerce, Bureau of Competitive Assessment
and Business Policy (BCABP, formerly BDSA), has issued Notices of
Proposed Rulemaking concerning revised anti simplified Defense Ma-
terials System (I)MS) and Defense Priorities System (DPS) regulations
and orders. These regulations and orders, published in Part II of the
Federal Register of 1 October 1973, are complete` revisions of current
regulations and orders. They are as follows:
DMS Regulation 1 - Basic Rules of the Defense Materials System
DPS Regulation 1 - Basic Rules of the Defense Priorities System
DPS Order i. - Metalworking Machines
DPS Order - Nickel
The proposed regulations and orders set forth rules for assuring accept-
ance and performance of national defense contracts and orders in
accordance with Title I (Priorities and Allocations) of the Defense
Production Act of 1950, as amended. Current priorities and allocations
authorities which: have been delegated to you are vital in assuring timely
deliveries of your contracts and orders from industry. They encompass
procurement transactions (including, but not limited to, R&D, production
and construction) within the United States, its territories and possessions,
and procurement by overseas commands requiring supporting resources
from the United States.
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The proposed (BCABP) issuances relate to the general field of industrial
operations and will have the force of law when published. They govern
the business transactions in the fields they cover and, therefore, have
the greatest effect on defense procurement.
Three copies of the subject regulations and orders are attached for your
review, comments and. recommendations. It is requested that you furnish
your Department or Agency views to this office by 12 November 1973 to
permit formulation of a consolidated DoD position and timely submission
to the Commerce Department. Remarks should be annotated to specific
page and paragraph references shown in the Federal Register, Part IT,
Monday, October 1, 1973, Volume 38, Number 189.
The normal procedure for clearing Commerce Department regulations
and orders within the Department of Defense and associated agencies is
specified in Section 9 of the DoD Priorities and Allocations Manual (PAM).
Under its provisions, and in order to expedite coordination, copies of
proposed BCABP regulations and orders are being provided directly to
DoD Departmental Priorities and Allocations Officers designated by you
to this office under DoD Instruction 4400. 1. However, since these are
complete revisions of existing policies and procedures, final views of
your Department or Agency should be furnished through your office.
The Department of Defense, in performing its functions of procurement,
is vitally concerned with the rules and procedures established in the BCABP
regulations and orders, first to see that their provisions are adequate to
channel material into DoD procurement items, and then to operate the im-
plementing procedures which give DoD procurement its preferential status
in industry. Thu7, it is important that close analysis be given to the pro-
posed changes to determine their effect upon current procurement and
their effectiveness as work-in procedures under mobilization conditions.
This office may contact your designated Departmental Priorities and
Allocations Representatives directly to apprise them of significant develop-
ments in the course of the DoD review of the Commerce Department
regulations and or ders, or to try to resolve major issues as provided in
the Order Clearance Procedure.
ELI T. REICH
Vise Admiral, USN
Attachments Deputy! 3si ._ai Se~:rct2rf of.Defense
As stated (Production T;ngineeriz)g & lfateriel ~cquisitic a;
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MONDAY, OCTOBER 1, 1973
WASHINGTON, D.C.
Volume 38 ^ Number 189
PART 11
DEPARTMENT OF
COMMERCE
Domestic and International
Business Administration
DEFENSE MATERIALS. SYSTEM
AND DEFENSE PRIORITIES
SYSTEM
Proposed Rulemaking
No. 189-Pt. U-1
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27252 PROPOSED RULES
DEPARTMENT OF COMMERCE
Domestic and International Business
Administration
[ 32A CFR Chapter VI ]
DEFENSE MATERIALS SYSTEM
Basic Rules
Notice is hereby given that the Deputy
Assistant Secretary for Competitive As-
sessment and Business Policy, pursuant
to section 704 of the Defense Production
Act of 1950, as amended and extended,
and Executive Order 10480, as amended,
is proposing to amend DMS Regulation 1.
Section 1 describes the contents of and
tells what the proposed amended regula-
tion does.
Interested persons who desire to sub-
mit written views or comments on the
proposed amended regulation should file
them, in triplicate, with the Deputy As-
sistant Secretary for Competitive Assess-
ment and Business Policy, U.S. Depart-
ment of Commerce, Washington, D.C.
20230, Ref: DMS Reg. 1, on or before
November 30, 1973.
The proposed amended regulation is
presented below:
DMS REG. 1.-BASIC RULES OF THE
DEFENSE MATERIALS SYSTEM
Sec.
1. What this regulation does.
2. Definitions.
3. Requirements and related procedures.
4. Allotment and self-authorization proce-
cedures.
5. Types of authorized controlled material
orders and preferential status.
6. Directives and preferential status.
7. Mandatory use of program determination,
allotment, self-authorization and rat-
ing authority.
8. Self-authorization procedure for Class A
and Class B products.
9. Statements and certifications to accom-
pany ACM orders and rated orders for
Class A and Class B products.
10. Elements of ACM orders.
11. Limitations on use of self-authorization.
12. Grouping or combination of orders.
13. Restrictions on placing ACM orders and
on use of controlled materials.
14.. Rated orders and ratings.
15. Transition provisions for acquisition of
controlled materials.
16. Intracompany deliveries.
17. Delivery for unlawful purposes prohibited.
18. Applicability of regulations and orders.
19. Defense against claims for damages.
20. Records and reports.
21. Requests for adjustment
22. Communications.
23. Violations.
Schedule
I. Controlled materials.
II. Authorized Program Identifications and
Claimant and Sub-Claimant Agencies.
III. Mill Lead Times.
IV. Minimum Mill Quantities.
V. Form for Statement of Requirements for
Class A products.
FR 9683, 11447, 3 CFR 1949-1953 Comp., p. explains the status of outstanding al-
919; Executive Order 11725, 38 FR 17175; lotments.
DMO 8400.1, 32A CFR 15; Department of (2) The definitions of Class A product
Commerce Organization Order 10-3, and Class B product have been modified.
amended, 37 FR 26565, 38 FR 4278; and De-
partment of Commerce, Domestic and Inter- The principal effect of these modifica-
national Business Administration Organiza- tions is to make the definitions self-con-
tion and Function Orders 45-1, 38 FR 9326, tained so that defense contractors may
and 45-2, 38 FR 9327. operate under DMS without reference
Section, 1. What this regulation does. to any other separate publication.
(3) Self-authorizing consumers (pro-
(a) This regulation is a major revision ducers of Class A and Class B products)
and simplification of the Defense Ma- are now required, with certain excep-
terials System and supersedes DMS Reg. tions, to use their inventory first in fill-
1 of December 1, 1959 (including its ing rated orders.
Schedules, Directions and Amendments). (4) The revised regulations expressly
DMS not only helps to keep current de- prohibits discrimination against rated
fense, atomic energy, and space pro- orders by imposing higher prices or dif-
grams on schedule but also provides an ferent terms than for comparable un-
established mechanism that can be ex- rated orders.
panded or converted if the need arises. (5) Modifications have been made in
This regulation complements and is Schedules I through V and in Directions
being issued concurrently with a major 1 and 2. These modifications are princi-
revision of Defense Priorities System pally, but not entirely, technical and
Regulation 1. procedural rather than substantive.
(b) :Defense contractors and their sup- Former Direction 2 (Small Order Pro-
pliers should thoroughly familiarize cedure for Allotting Agencies) has been
themselves with the provisions of DPS eliminated and former Direction 3 (Con-
Reg. 1 and with the provisions of this trolled Materials Producers and Distrib-
regulation which defines their rights and utors) has been renumbered as Direction
obligations and sets forth the basic rules 2.
of the Defense Materials System. One of (6) Numerous other changes, simpli-
the principal differences between DPS fications and consolidations have been
and DIMS, which complement each other, effected in this revised regulation, the
is that the former relates primarily to full text of which (including its Sched-
products and materials other than con- ules I through V and Directions 1 and 2)
trolled materials while the latter relates should be studied carefully by defense
primarily to controlled materials (steel, contractors and their suppliers.
copper, aluminum and nickel alloys). Sec. 2. Definitions.
(c) Persons engaged in production,
.construction or research and develop- As used in this regulation:
ment for defense programs are required (a) "Person" means any individual,
to follow all the applicable rules of this corporation, partnership, association or
revised regulation. Proper identification any other organized group of persons,
of delivery orders placed for products and includes any agency of the United
and materials needed to fill defense States Government or any other govern-
orders and contracts is particularly im- ment.
portant. The rule for mandatory iden- (b) "BCABP" means the Bureau of
tification of orders is an essential part of Competitive Assessment and Business
both the Defense Materials System and Policy, Domestic and International Busi-
the Defense Priorities System. It avoids ness Administration, of the United
delays which could :.dversely affect States Department of Commerce.
timely completion of defense programs (c) "GSA" means the General Serv-
by requiring preferential delivery against ices Administration of the United States
properly identified orders and by fur- Government.
nishirig a mechanism for expediting as- (d) "Controlled material" means do-
sistance where needed. mestic and imported steel, copper, alumi-
(d) The changes effected by this re- num, and nickel alloys, in the forms
vised regulation are comprehensive in and shapes specified in Schedule I of this
scope and include, but are not limited regulation, whether new, remelted, re-
to: rolled or redrawn.
(1) Under the former DMS Reg. 1 al- (e) "Claimant Agency" means the
lotments of controlled materials were Department of Defense, the Atomic
made by the Office of Emergency Pre- Energy Commission, BCABP or any other
paredness to Claimant Agencies which Government agency or subdivision
then made allotments to Allotting Agen- thereof designated as such by GSA for
cies. The latter, in turn, made allotments submission to it of controlled material
to prime consumers producing Class A program requirements. Schdule II of this
products. This revised regulation pro- regulation lists the Claimant Agencies.
vides for controlled material authoriza- (f) "Sub-Claimant Agency" means
tions by the General Services Adminis- any Government agency or subdivision
Direction tration to Claimant Agencies and for al- thereof designated as such by GSA for
1. Self-authorization procedure for MRO lotments by Claimant Agencies to Sub- submission of controlled material pro-
ordded to fill manditory acceptance Claimant Agencies (a new term which gram requirements to a Claimant
2. Controlled materials producers and dis- replaces the former designation of "Al- Agency. Schedule II of this regulation
tributors. lotting Agencies"). However, allotments lists. the Sub-Claimant Agencies.
AUTHORITY: Defense Production Act of to prime consumers have been eliminated (g) "Authorized program" means a
1950, as amended (64 Stat. 816; 50 U.S.C. App. in the interest of simplification and all military, atomic energy or other pro-
2061 et seq.); Executive Order 10480, as defense contractors and sub-contractors gram specifically approved by GSA and
amended, 18 FR 4939, 6201, 19 F"' 3807, 7249, under DMS are now self-authorizing which is subject to any regulation or
21 FR 1673, 23 FR 5061, 6971, 24 FR 3779, 27 consumers. Section 15 of this regulation order of BCABP.
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. (h) "Program determination" means
an authorization by GSA of the amount
and kind o; , controlled materials which
may be procured or used by or for a
Claimant' Agency, or which may be al-
lotted by a Claimant Agency to a Sub-
Claimant Agency, for authorized pro-
grams during specified periods of time.
(1) "Allotment" means an authoriza-
tion by a Claimant Agency of the amount
and kind of controlled materials which
may be procured or used by or for a Sub-
Claimant Agency for authorized pro-
grams during specified periods of time.
(j) "Set-asido" means the amount
and kind of any product or material, in-
cluding controlled materials, which a
person is required to reserve for filling
mandatory acceptance orders during
specified periods of time, as prescribed
by BCABP.
(k) "Self-authorizing consumer"
means any person who receives authority
to obtain controlled material by self-
authorization pursuant to the provisions
of this regulation. A self-authorizing
consumer for a construction project may
designate another person to act as the
self-authorizing consumer for him.
(1) "Class A product" means any prod-
uct containing controlled material made
to special specifications for authorized
programs and which is not itself a con-
trolled material. It also includes a con-
struction project or research and de-
velopment which requires for its comple-
tion any controlled material or Class A
product.
(m) "Class - B product" means any
product containing controlled material
which is not made to special specifica-
tions for authorized programs (usually
civilian-type products) and which is not
itself a controlled material. It also in-
cludes a service which requires for its
completion any controlled material.
(n) "Delivery order" means any pur-
chase order, contract,- shipping or other
instruction calling for delivery of any
material or product, or performance of
construction or service, on a particular
date or dates or within specified periods
of time.
(o) "Authorized controlled material
order" (ACM order) means any delivery
order for any controlled material (as
distinct from a product containing con-
trolled material) bearing an authorized
program identification and the certifica-
tion required by this regulation or any
other applicable regulation or order of
BCABP. The term "ACM order" shall
have the same meaning as "authorized
controlled material order."
(p) "Rated order" means any contract,
purchase or delivery order for any prod-
uct, service or material other than con-
trolled material bearing an authorized
rating and the certification required by
this regulation, DPS Reg. 1 or any other
applicable regulation or order of BCABP.
(q) "Mandatory acceptance order"
means a rated order, an ACM order or
any other purchase or delivery order
which a person is required to accept pur-
suant to any regulation or order of BC
ABP, or pursuant to a specific authori-
ration or directive of BCABP.
(r) "Controlled materials distributor"
means (1) a distributor of steel con-
trolled materials as defined in DMS
Order 1, (2) a distributor of nickel alloy
controlled materials as defined in DMS
Order 2, (3) a distributor of aluminum
controlled materials as defined in DMS
Order 3, or (4) a distributor of copper
controlled materials as defined in DMS
Order 4.
(s) "Construction" means the erection
of any building, structure, or project, or
addition or extension thereto, or altera-
tion thereof, through the incorporation-
in-place on the site of materials or prod-
ucts which are to be an integral and
permanent part of the building, struc-
ture, or project, but it does not include
maintenance and repair.
(t) "Project" means a construction
plan contemplated for execution, irre-
spective of the time when it is to be put
into effect in full or in part, involving
all. or portions of a single building or
structure, or involving two or more
buildings or structures, or portions
thereof, which are physically contiguous,
or are parts of an integrated design or
plan, so that each is an element of a
single operation. In addition, a project
also means a type of construction which
is not a building or structure, but which'
requires a construction operation for its
completion, such as a freight -yard, air-
port runway or oil refinery.
Sec. 3. Requirements and related proce-
dures.
(a) Claimant Agencies will submit
controlled material requirements for au-
thorized programs to GSA in accordance
with procedures prescribed by GSA.
(b) Sub-Claimant Agencies will sub-
mit controlled material requirements for
authorized programs to Claimant Agen-
cies in accordance with procedures pre-
scribed by GSA or Claimant Agencies.
(c) GSA will issue program determina-
tions to each Claimant Agency.
(d) Each Claimant Agency, pursuant
to program determinations, will make
allotments to Sub-Claimant Agencies.
(e) BCABP may establish set-asides,
in support of program determinations,
for acceptance of ACM orders by con-
trolled materials producers.
(f) Any self-authorizing consumer,
upon the request of a Claimant or Sub-
Claimant Agency for whom he is a sup-
plier, must submit a statement of con-
trolled material requirements for Class
A products for authorized programs of
such agency. This information must be
submitted to the requesting agency on
Form DMS-4A (production or research
and development), Form DMS-4C (con-
struction) or other prescribed forms.
(g) Any self-authorizing consumer,
upon the request of another self-author-
izing consumer for whom he is a sup-
plier, must submit a statement of his
controlled material requirements to fill
a rated order for Class A products for
authorized programs. This information
must be submitted to the requesting
consumer on Form DMS-6 (contained
In Schedule V of this regulation) in ac-
cordance with the instructions stated
therein.
Sec. 4. Allotment and self-authorization
procedures.
(a) An allotment must be identified
by an allotment number consisting of
the appropriate program identification
(as listed in Schedule II of this regula-
tion) and shall specify the quantities and
kinds of controlled materials authorized
for delivery in specified periods of time.
Unless otherwise prescribed by BCABP,
allotments shall be made in the follow-
ing terms, in each case without further
breakdown:
(1) Carbon steel (including wrought iron).
(2) Alloy steel (except stainless steel).
(3) Stainless steel.
(4) Copper and copper-base alloy brass
mill products.
(5) Copper wire mill products.
(6) Copper and copper-base alloy foundry
products and powder.
(7) Aluminum.
(8) Nickel alloys.
(b) A person who receives a rated
order for a Class A product or a Class B
product is a self-authorizing consumer
and must obtain his requirements of con-
trolled materials and other products and
materials under the provisions of section
8 of this regulation.
Sec. 5. Types of authorized controlled
material orders and preferential
status.
(a) Two types of ACM orders are au-
thorized, an ACM order and an ACM-DX
order. ACM orders must contain the ap-
propriate program identification and the
calendar quarter in which delivery is
required, for example, A-6-2Q74. ACM-
DX orders must contain the appropriate
program identification and the calendar
quarter in which delivery is required,
followed by the suffix DX, for example,
A-6-2Q74-DX. Schedule II of this reg-
ulation contains a list of authorized pro-
gram identifications.
(b) In addition to the identifications
prescribed in paragraph (a) of this sec-
tion, all ACM orders and all ACM-DX
orders must contain the date or dates
on which delivery is required and must
be certified as provided in section 9 of
this regulation.'
(c) All ACM orders shall have equal
preferential status and shall take prece-
dence over orders previously or subse-
quently received which do not bear a
program identification. All ACM-DX
orders shall have equal preferential
status and shall take precedence over
ACM orders previously or subsequently
received and over orders previously or
subsequently received which do not bear
a program identification.
Sec. 6. Directives and preferential status.
(a) A person shall comply with each
directive issued to him by BCABP. A
recipient of a directive from BCABP shall
not use such directive to obtain any
products, materials or services from a
supplier by placing a mandatory accept-
ance order, unless expressly authorized
in the directive.
(b) Directives issued by BCABP shall
take precedence over ACM-DX orders,
ACM orders, DX rated orders, DO rated
orders and unrated orders previously or
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PROPOSED RULES
subsequently received, unless a contrary
instruction appears in the directive.
Sec. 7. Mandatory use of program deter-
mination, allotment, self-authoriza-
tion and rating authority.
(a) Each Claimant and Sub-Claimant
Agency must use its program determina-
tion, allotment and rating authority, as
appropriate, in acquiring controlled ma-
terials and other products and materials
needed for completion of authorized
programs.
(b) Each person who has received a
rated order for a Class A or a Class B
product must acquire controlled mate-
rials and other products and materials
to fill such order or to replace in inven-
tory products and materals used to fill
such order by self-authorization, pur-
suant to section 8 of this regulation.
(c) The mandatory provisions of this
section need not be followed In the case
of any individual purchase order of $500
or less.
Sce. 8. Self-authorization procedure for
Class A and (lass B products.
(a) A producer of Class A or Class B
products who has accepted a rated order
for such products is a self-authorizing
consumer.
(b) A self-authorizing consumer must
use the program identification Indicated
on his rated order in placing ACM orders
to obtain controlled materials needed to
fill such order or to replace in inventory
controlled materials used to fill such
rated order. However, with respect to
inventory replacement of controlled ma-
terials he shall place such ACM orders
only in the calendar month in which such
materials were taken from inventory or
in the immediately succeeding two cal-
endar months. If it is impracticable for
him to determine the exact require-
ments of controlled materials needed to
fill a rated order for Class A or Class B
products, he must place ACM orders for
delivery of an amount not exceeding his
best estimates of controlled materials
needed to fill such rated order.
(c) A self-authorizing consumer must
use the rating indicated on his rated
order in obtaining products and mate-
rials other than controlled materials
needed to fill such order or to replace in
inventory products and materials used to
fill such rated order. However, with re-
spect to inventory replacement of prod-
ucts and materials other than controlled
materials he shall place rated orders
only in the calendar month -in which
such products and materials were taken
from inventory or in the Immediately
succeeding two calendar months- If it
it impracticable for him to determine
the exact requirements of products and
materials other than controlled mate-
rials needed to fill a rated order for
Class A or Class B products, he must
place rated orders for delivery of an
amount not exceeding his best estimates
of such products and materials needed
to fill such rated order.
(d) If the requirement that he use
the program identifications or ratings in-
dicated on his customers` rated orders is
impracticable because they are varied
or numerous, a self-authorizing con-
sumer may use the program identifica-
tion or rating B-5 In lieu thereof.
(e; A. self-authorizing consumer shall
fill a rated order with products and ma-
terials from his inventory (to the extent
that he has such products and materials
in inventory) and replace such products
and materials in accordance with the pro-
visions of this or any other applicable
regulation or order of BCABP. However,
if the requirement that he use products
and materials from inventory would stop
or interrupt his operations during the
next 60 days in a way which would cause
a substantial loss of total production or
a substantial delay in his operations, he
need not do so.
(f ? A. person who has accepted a rated
order shall not discriminate against such
order by imposing higher prices or by
imposing different terms and conditions
,for such order than for generally com-
parable unrated orders, or in any other
manner.
Sec. 9. Statements and certifications to
accompany ACM orders and rated
orders for Class A and Class B prod-
ucts.
(a) Each Claimant Agency, Sub-
Clai;nant Agency and self-authorizing
consumer placing a rated order for a
Class A or a Class B product or placing
an ACM order must, in addition to In-
dicating the appropriate rating or pro-
gram identification and delivery date or
dates on such order, furnish his sup-
plier with a statement reading substan-
tially as follows;
You are required. to follow the provisions
of DMS Reg. 1 and of all other applicable
regulations and orders of BCABP in obtain-
ing c ontrolled materials and other products
and materials needed to fill this order.
This statement must appear on the order
or on a separate piece of paper attached
to the order.
(b) Unless another form of certifica-
tion is specifically prescribed by an ap-
plicable regulation or order of BCABP,
every rated order must contain the cer-
tification prescribed in DPS Reg. 1 or
the .following certification:
Certified for national defense use under
DMS Reg. 1
and shall be signed as provided in para-
graph (e) of this section. This certifica-
tion accompanying a rated order shall
have the same effect as a certification
under DPS Reg. 1.
(c) Unless another form of certifica-
tion is specifically prescribed by an ap-
plicO.ble regulation or order of BCABP,
every ACM order must contain the fol-
lowing certification:
Certified for national defense use under DMS
Reg I
and shall be signed as provided in para-
graph (e) of this section.
(d) The certifications provided for in
paragraphs (b) and (c) of this section
shall constitute a representation to the
supplier and to BCABP that subject to
the criminal penalties provided in ap-
plicable United States statutes, (1) the
amount ordered by the purchaser is
within the amount needed by him', to
fill the related mandatory acceptance
order accepted by him and (2) the pur-
chaser is expressly authorized by
BCABP, or by any applicable regula-
tion or order of BCABP, to place such
mandatory acceptance order.
(e) A certification on an ACM order
or a rated order must be signed by a
responsible individual who is duly au-
thorized in writing to sign for that pur-
pose. The signature must be either' by
hand or in the form of a facsimile re-
production of a handwritten signature.
If a facsimile signature is used, the 'In-
dividual who uses it must be duly au-
thorized in writing to use it for this
purpose by the person whose signature it
is, and a written record of the authori-
zation must be retained on file. A der-
tification may be authenticated by a
method other than a signature or a fac-
simile signature, such as by automatic
data processing transmission, in which
case a record must be maintained by the
user describing the manner in which the
authel}tication is transmitted and the
manner in which the authenticatiojl is
authorized.
(f) An ACM order or a rated order
may be placed orally or by telegram.
In such event the purchaser must m-
mediately transmit to the supplier a con-
firming ACM order or rated order' as
appropriate, complying with the requ4re-
ments of this section.
Sec. 10. Elements of ACM orders.
(a) A delivery order placed with a
controlled materials producer or a con-
trolled materials distributor fort a
controlled material is an ACM order only
if it is specifically designated as an au-
thorized controlled material order 1 by
any regulation or order of BCABP; or
if it complies with this section and don-
tains (1) the appropriate program iden-
tification and the calendar quarter in
which delivery is required, (2) the date
or dates on which delivery is required
and (3) the certification specified in sec-
tion 9(c) of this regulation. As an ex-
ample, an ACM order calling for delivery
in the second quarter of 1974 placed pur-
suant to a rated order bearing the pro-
gram identification A-6, must contain
the following: A-6-2Q74 and, In a di-
tion, the delivery date or dates and
certification.
(b) Each person who has accepted a
DX rated order must use the letters
"DX" to identify ACM orders placed by
him to fill such order or to replace in
inventory controlled materials used to
fill such order. Such an order is referred
to as an "ACM-DX order" and shat be
identified as prescribed in section $ of
this regulation. No person may use the
letters "DX" to identify ACM orders ex-
cept as provided in this regulation or in
any other regulation or order of BCABP.
The letters "DX" appearing on an ACM
order shall entitle such order to priority
in acceptance or delivery over other
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ACM orders as'provided in this regula-
tion, In Direction 2 to this regulation or
in any other regulation or order of
BCABP.
(c) An ACM order must be in suf-
ficient detail to permit entry on mill
schedules and must be received by the
controlled materials producer at such
time In advance of the month of re-
quired shipment as is specified in Sched-
ule III of this regulation, except for
ACM-DX orders as provided in Direction
2 to this regulation, or at the earliest sub-
sequent date that the controlled mate-
rials producer may find it practicable to
accept the same.
Sec. 11. Limitations on use of self-
authorization.
(a) Each person who has accepted a
rated order for a Class A or a Class B
product must acquire controlled mate-
rials and other products and materials
to fill such order or to replace in inven-
tory products and materials used to fill
such order by self-authorization, pur-
suant to section 8 of this regulation.
(b) Products and materials which
may be obtained by a person pursuant
to the self-authorization provisions of
this regulation to fill a rated order shall
include only:
(1) (1) Those which will be physically
incorporated into the product or material
covered by the rated order and the por-
tion of such products and materials
normally consumed or converted Into
scrap or by-products in the course of
processing.
(ii) -Chemicals used directly in pro-
duction to fill the rated order.
(iii) Products and materials used for
packaging or containers required to make
delivery against the rated order.
They shall not include:
(2) (1) Products and materials for
plant improvement, expansion or con-
struction unless they will be physically
incorporated into a construction project
covered by a rated order.
(ii) Production equipment or prod-
ucts and materials to be used for the
manufacture of production equipment.
(iii) Maintenance, repair and operat-
Ing supplies (MRO). Direction 1 to this
regulation provides a separate self-
authorization procedure to obtain MRO
needed to fill mandatory acceptance
orders.
(c) In the event a person is not per-
mitted to place a mandatory acceptance
order because of the restrictions pre-
scribed in paragraph (b) of this section,
and he needs special priorities authoriza-
tion, he shall apply for such authoriza-
tion in accordance with section 11 of
DPS Reg. 1.
(d) In the event a person has placed a
mandatory acceptance order and needs
expediting assistance to obtain timely de-
livery, or if he cannot find a supplier who
will accept a mandatory acceptance order
he attempts to place, he shall apply for
assistance in accordance with section 12
of DPS Reg. 1.
(e) A person shall not place a manda-
tory acceptance order for products or
materials in anticipation of receipt by
him of a mandatory acceptance order.
Sec. 12. Grouping or combination of
orders.
(a) No person shall combine an ACM
order with an order which is not an ACM
order. However, if the total of both types
of orders is less than the minimum mill
quantity specified in Schedule IV of this
regulation, and is not procurable from a
distributor, then an ACM order shall be
placed for such minimum mill quantity.
(b) ACM orders identified by different
program identification may be com-
bined if the portion covered by each is
specifically identified by the appropriate
program identification, unless the pro-
gram identification B-5 is used as pro-
vided in section 8(d) of this regulation.
In addition, if the quantity of controlled
material needed to fill rated orders is less
than the minimum mill quantity speci-
fied in Schedule IV of this regulation, and
Is not procurable from a distributor, an
A,CM order shall be placed for such mini-
mum mill quantity, using the program
identification B-5. However, no person
shall place separate ACM orders solely
for the purpose of obtaining minimum
mill quantities to fill such separate
orders.
Sec. 13. Restrictions on placing ACM or-
ders and on use of controlled mate-
rials.
(a) No person shall place an ACM
order unless he is entitled to do so. No
person shall place an ACM order calling
for delivery of any controlled material in
a greater amount or on an earlier date
than required to fill his rated orders.
(b) Each person who has obtained
controlled materials pursuant to an ACM
order in accordance with this or any
other regulation or order of BCABP. shall
use such materials only (1) to fill rated
orders, or (2) to replace in inventory
controlled materials used to fill any such
rated orders. If he cannot use the con-
trolled materials for any such purpose,
he may use them to fill unrated orders or
dispose of them, unless otherwise ordered
or directed in writing by BCABP.
Sec. 14. Rated orders and ratings.
(a) The detailed rules for designation
and use of rated orders and ratings are
contained in DPS Reg. 1 which should be
studied carefully by persons who receive
rated orders and by persons who place
rated orders.
(b) As provided in DPS Reg. 1 ratings
must contain the prefix DO or DX, as the
case may be, followed by the appropriate
program identification. Schedule II of
this regulation and Schedule I of DPS
Reg. 1 contain a list of authorized pro-
gram identifications. Rated orders must
show the rating authorized, for example
DO-A-6, the date or dates on which de-
livery is required and must be certified as
provided in section 9 of this regulation or
section 8 of DPS Reg. 1.
Sec. 15. Transition provisions for ac-
quisition of controlled materials.
(a) Nothing in this revised regulation
shall be construed to cancel outstanding
allotments of controlled materials for
whatever purpose received. A person who
has received an allotment and who may
obtain controlled materials for the same
purpose by self-authorization pursuant
to this amended regulation, shall use
either the allotment or self-authorization
to obtain controlled materials for suclx
purpose: Provided, That he shall not use
the allotment or self-authorization to
obtain more controlled materials than.
needed.
(b) The changes made in Schedule I
(Controlled Materials), Schedule III
(Mill Lead Times) and Schedule IV
(Minimum Mill Quantities) of this
amended regulation shall not be con-
strued to affect outstanding orders
placed pursuant to any regulation or
order of BCABP.
Sec. 16. Intracoaupany deliveries.
The provisions of this regulation apply
not only to deliveries to other persons,
including affiliates and subsidiaries, but
also to deliveries from one branch, di-
vision or section of a single enterprise to
another branch, division or section of the
same or any other enterprise under com-
mon ownership or control.
Sec. 17. Delivery for unlawful purposes
prohibited.
No person shall. deliver any product or
material which he knows or has reason
to believe will be accepted, redelivered,
held or used in violation of any regula-
tion or order of BCABP.
Sec. 18. Applicability of regulations and
orders.
(a) All regulations and orders of
BCABP, unless specifically stated other-
wise in such regulations and orders, shall
apply to transactions in any- state, terri-
tory or possession of the United States
and the District of Columbia.
(b) All regulations and orders of
BCABP shall ' apply to all subsequent
transactions even though they are cov-
ered by contracts previously entered into.
(c) Nothing in this regulation shall be
construed to relieve any person from
complying with all other applicable reg-
ulations and orders of BCABP. In case
compliance by any person with the pro-
visions of any such regulation or order
would prevent fulfillment of a manda-
tory acceptance order, he shall immedi-
ately report the matter to BCABP which
will thereupon take such action as is
deemed appropriate, but unless and until
otherwise expressly authorized or di-
rected by BCABP, such person shall com-
ply with the provisions of such regula-
tion or order.
(d) This regulation complements DPS
Reg. 1. Defense contractors and their
'suppliers should be thoroughly familiar
with both this regulation and DPS Reg. 1.
Sec. 19. Defense against claims for dam-
ages.
No person shall be held liable for dam-
ages or penalties for any act or failure to
act resulting directly or indirectly from
compliance with any BCABP regulation,
order, direction, directive or other writ-
ten instruction, notwithstanding that
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PROPOSED RULES
i,ny such regulation, order, direction, di-
1 ective or other written instruction shall
Ihereafter be declared by judicial or other
competent authority to be invalid.
7 ee.:20. Records and reports.
(a) Each person participating in any
transaction covered by this regulation
hall make, and preserve for at least
three years thereafter, accurate and
complete records thereof. Such records
shall include all rated orders, ACM orders
and directives received by such person,
copies of all rated orders and ACM orders
placed by such person, records of pur-
o.,.iases, receipts, inventories, production,
use, sales, and deliveries of all materials
acquired, sold or delivered pursuant to
mandatory acceptance orders. Records
::Hall be maintained in sufficient detail to
3ermit the determination, upon exam-
;nation or audit, whether or not each
transaction complies with the provisions
of this regulation or any other applicable
?egulation or order of BCABP. However,
,his regulation does not specify any par-
,acular accounting method or system to
ae used. Records may be retained in the
form of microfilm or other record-keep-
ing systems which provide the informa-
tion contained in the original records.
(b) All records required by this regula-
tion shall be made available for inspec-
tion and audit by duly authorized repre-
sentatives of BCABP at the usual place
:if business of the person involved.
(r) Persons subject to this regulation
shall develop and maintain such records
and submit such reports to BCABP as it
shall require, subject to the terms of the
Federal Reports Act of 1942 (44 U.S.C.
35011-3511).
Sec. 21. Requests for adjustment or ex-
ception.
Any person subject to any provision of
this regulation may submit a request for
a dlustment or exception upon the ground
that such provision works an undue or
exceptional hardship upon him not suf-
fered generally by others in the same
trade or industry, or that its enforcement
against him would not be in the interest
of the national defense or in the public
interest. The submission of a request for
adjustment or exception shall not relieve
any person of his obligation to comply
with any such provision. In examining
requests for adjustment or exception
claiming that the public interest is preju-
diced by the application of any provision
of this regulation, consideration will be
given to the requirements of public
health and safety, civil defense, and dis-
location of labor and resulting unemploy-
ment that would impair the defense pro-
gram. Each request shall be in writing, by
letter in triplicate, addressed as provided
in section 22 of this regulation, and shall
set forth all pertinent facts and the na-
ture of the relief sought, and shall state
the justification therefor.
Se v. 22. Communications.
All communications concerning this
regulation or requests for adjustment or
exception pursuant to section 21 of this
regulation. shall be addressed to the
Bureau of Competitive Assessment and
Business Policy, U.B. Department of
Commerce, Washington, D.C. 20230, Ref:
DMS Reg. 1.
Sec. 23. Violations?
(a) Any person who willfully violates
any provision of this regulation, or who
wilfully furnishes false information or
conceals any material fact in the course
of operation under this regulation, is
guilty of a crime and upon convic-
tion may be punished by fine or impris-
onment or both.
(b) Violation of any provision of this
regulation may subject any person com-
mitting or participating in such viola-
tion to administrative action to suspend
his privilege of employing mandatory
acceptance orders in making or receiving
deliveries of products or materials, or
using products, materials or facilities.
In addition to such administrative ac-
tion, an injunction and order may be ob-
tained from a court of appropriate Juris-
diction prohibiting any such violation
and enforcing compliance with the pro-
visions hereof.
(c) For the purpose of any adminis-
trative action or civil, proceeding for the
enforcement of this regulation or any
criminal prosecution for violation of this
regulation, the terms "authorized con-
trolled material order," "ACM order,"
"rated order," "rating" and "certifica-
tion" shall be deemed to include every
purported authorized controlled material
order, ACM order, rated order, rating
and certification whether or not such
order, rating or certification shall have
been authorized as provided in this reg-
ulation and irrespective of the form of
such order, rating or certification.
Norm:--All reporting and record-keeping
requirements of this regulation have been
approved by the Office of Management and
Budget, in. accordance with the Federal Re-
ports Act of 1942.
Dated September 21, 1973.
BUREAU OF COMPETITIVE
ASSESSMENT AND BUSINESS
POLICY,
GARY M. Coox,
Acting Deputy Assistant Secre-
tary for Competitive Assess-
ment and Business Policy.
SCHEDULE I TO DAIS REG. 1
CONTROLLED MATERIALS
(See sections 2(d) and 15(b))
CARSON STEEL (INCLUDING WROUGHT IRON)'
-For the purpose of this schedule "carbon
steel ;including wrought iron)" means any
steel --ustomarlly so classified and also in-
cludes: ('.) Ingot iron; (2) all grades of elec-
trical sheet and strip; (3) high-strength low-
alloy htee:is; (4) clad and coated carbon steels
not included with alloy steels: e.g., galva-
nized, tin, terne, copper (excluding copper
wire mill products) or aluminum clad and/or
coatect carbon steels; and (5) leaded carbon
steels. "H`,gh-strength low-alloy steels" means
only the proprietary grades promoted and
sso~ld r,:)r this purpose, and Navy high-tensile
steel grade IIT Specification Mi1-S-16113
(Ships).
(a) Bar, bar shapes.
Includes:
Bar, hot-rolled, stock for projectile and
shell bodies'
Bar, hot-rolled, other (including light
shapes).
Bar, reinforcing (straight lengths-as
rolled).
Bar, cold finished.
(b) Sheet, strip (uncoated and coated).
Includes:
Sheet, hot-rolled.
Sheet, cold-rolled.
Sheet, galvanized.
Sheet, all other coated.
Sheet, enameling.
Roofing, galvanized, corrugated, V-crimped
channel drains.
Ridge roll, valley, and flashing.
Siding, corrugated and brick.
Strip, hot-rolled.
Strip, cold-rolled.
Strip, galvanized.
Electrical sheet and strip.
Tin'mill black plate.
Tin plate, hot-dipped.
Ternes, special coated manufacturing.
Tin plate, electrolytic.
(c) Plate'
(d) Structural shapes,4 piling.
(e) Pipe, tubing-seamless and welded.,
Includes:
Standard pipe (including type of couplings
furnished by mill) '
Oil country goods (casing, tubing and drill
pipe, including type of couplings furnished
by mill).
Line pipe (including type of couplings fur-
nished by mill).
Pressure tubing.
Mechanical tubing.
(f) Wire, wire products.
Includes:
Wire-drawn.
2Includes projectile body stock, sizes under
2y, inches.
i Carbon plate not only includes the fol-
lowing specifications, but also floor plates' of
any thickness:
0.180 inch or thicker, over 48 inches wide.
0.230 inch or thicker, over 8 inches wide.
7.53 pounds per square foot or heavier,
over 48 inches wide.
9.62 pounds per square foot or heavier,
over 8 inches wide.
* "Structural shapes" means rolled flanged
sections having at least one dimension 'of
their cross section 3 inches or greater, com-
monly referred to as angles, channels, beams,
and wide flange sections.
5 Steel pipe or tubing exceeding 36 incites
O.D. is not a controlled material, but to a
Class A product.
e Standard pipe includes the following:
Ammonia pipe.
Bedstead tubing.
Driven well pipe.
Drive pipe.
Dry kiln pipe.
Dry pipe for locomotives.
English gas and steam pipe.
Fence pipe.
Furniture pipe.
Ice machine pipe.
Mechanical service pipe.
Nipple pipe.
Pipe for piling.
Pipe for plating and enameling.
Pump pipe.
Signal pipe.
Standard pipe coupling.
Structural pipe.
Turbine pump pipe.
Water main pipe.
Water well casing.
Water well reamed and drifted pipe.
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27257
Nails-bright steel wire, steel cut, gal-
vanized, cement-coated, and painted.
Spikes and brads-steel wire, galvanized,
and cement-coated.
Staples, brige and galvanized (farm and
poultry) .
Wire rope and strand.
Welded wire mesh and woven wire netting.
Barbed and twisted wire.
Wire fence, woven and welded (farm and
poultry) :
Bale ties.
Coiled automatic baler wire.
(g) Tool steel (all forms including die
blocks and tool steel forgings) .
(h) Other mill forms and products (ex-
cluding castings and forgings).
Includes:
Ingots.
Billets, for shell body stock only.'
Billets, for shell component parts and
rockets.
Blooms, slabs, other billets, tube rounds,
sheet bars.
Skelp.
Wire rod.
Rails.
Joint bars (track).
Tie plates (track).
Track spikes.
Wheels, rolled or forged (railroad) .
Axles (railroad).
ALLOY STEEL' (EXCEPT STAINLESS STEEL')
(a) Bar, bar shapes.
Includes:
Bar, hot-rolled stock for projectile and
shell bodies.
Bar, hot-rolled, other (including light
shapes) .
Bar, cold-finished.
(b) Sheet, strip.
Includes:
Sheet, hot-rolled.
Sheet, cold-rolled.
Sheet, galvanized.
Strip, hot-rolled.
Strip, cold-rolled.
(c) Plate?*
Includes :
Rolled armor.
Other.
4 Includes only projectile body stock, sizes
2ye inches and larger, rounds, and round-
cornered squares.
8 For purposes of this schedule "alloy steel"
means steel containing 50 percent or more of
iron or steel and any one or more of the
following elements in the following
amounts: manganese, maximum of range in
excess of 1.65 percent; silicon, maximum of
range in excess of 0.60 percent (excepting
electrical sheet and strip); copper, maxi-
mum of range in excess of 0.60 percent;
aluminum, boron, chromium (less than 10
percent), cobalt, columbium, molybdenum,
nickel, tantalum, titanium, tungsten, va-
nadium, zirconium, or any other alloying ele-
ments in any amount specified or known to
have been added to obtain a desired alloying
effect. Clad steels which have an alloy steel
base or carbon steel base for which nickel
and/or chromium is contained in the coat-
ing or cladding material (e.g., inconel, monel,
or stainless) are alloy steels.
"Stainless steel" means heat- and corro-
sion-resisting steel containing 60 percent or
more of iron or steel and 10 percent or more
of chromium whether with or without nickel,
molybdenum, or other elements.
w Alloy steel plate includes the following
specifications:
0,180 inch or thicker, over 48 inches
wide.
0.230 inch or thicker, over 8 inches wide.
7.53 pounds per square foot or heavier,
over 48 inches wide.
9.62 pounds per square foot or heavier,
over 8 inches wide.
(d) Structural shapes'
(e) Pipe, tubing-seamless and welded.'
Includes:
Oil-country goods.
Pressure tubing.
Mechanical tubing.
(f) Wire.
(g) Tool steel (all forms including die
blocks and tool steel forgings).
(h) Other mill forms and products (ex-
cluding castings and forgings).
Includes:
Ingots.
]fillets, projectile and shell stock.
Blooms, slabs, other billets, tube rounds,
sheet bars.
Wire rods.
Rails.
Wheels, rolled or forged (railroad).
Axles (railroad).
STAINLESS STEEL ?
(a) Bar, bar shapes.
Includes:
Bar, hot-rolled (including light
Bar, cold-finished.
(b) Sheet, strip.
Includes:
Sheet, hot-rolled.
Sheet, cold-rolled.
Strip, hot-rolled.
Strip, cold-rolled.
(c) Plate .n
(d) Structural shapes 4
(e) Pipe, tubing-seamless and
Includes:
Pipe.
Pressure tubing.
Mechanical tubing.
(f) Wire, wire products.
Includes:
Wire, drawn,
Wire rope and strand.
(g) Other mill forms and products (ex-
cluding castings and forgings).
Includes:
Ingots.
Blooms, slabs, billets, tube rounds.
Sheet bars, wire rods.
Magnet wire.
Insulated building wire.
Paper and lead power cable.
Paper and pulp telephone cable.
Plastic insulated telephone cable.
Asbestos cable.
Portable and flexible cord and cable.
Communication wire and cable.
Shipboard cable.
Automotive and aircraft wire and cable.
Insulated power cable.
Signal and control cable.
Coaxial cable.
Copper-clad steel wire containing over 20
percent copper by weight regardless of end
use.
Copper-clad aluminum wire containing
over 20 percent copper by weight regardless
of end use.
COPPER AND COPPER-BASE ALLOY FOUNDRY
PRODUCTS AND POWDER
Includes:
Copper, brass, and bronze castings .u
Copper, brass, and bronze powder (includ-
ing copper powder, granular and flake, and
copper-base alloy powder, granular and
flake).
ALUMINUM
Rolled bar, rod, structural shapes, and bare
wire.
Aluminum conductor steel reinforced
(ACSR) and bare aluminum cable.
Insulated or covered wire or cable.
Extruded bar, rod, shapes, and tube (ex-
truded, drawn and welded tube).
Sheet and plate.
Ingot, granular or shot, and molten metal.
Foil.
Powder, flake, paste.
NICKEL ALLOYS 75
'Ingots, blooms, slabs, and billets.
Plate, sheet, strip, and foil.
Rods, bars (including anode bars), pipe,
tubing, and shapes.
Wire and wire rod.
Powder (
roduced m
h
i
ll
p
ec
an
ca
y from
COPPER AND COPPER-BASE ALLOY BRASS MILL nickel shot).
PRODUCTS"
Copper (unalloyed) ; SCHEDULE II TO DMS REG. 1
(a) Bar, shapes, wire (except electrical AUTHORIZED PROGRAM IDENTIFICATIONS AND
wire). CLAIMANT AND SUB-CLAIMANT AGENCIES
(b) Rod. (See sections 2(e), 2(f), 4(a), 5(a), and
(c) Sheet, plate, 24 inches wide and over. 14(b) )
(d) Rolls and strip up to 24 inches in
width. The program identification symbols listed
(e) Pipe, tube (seamless). in this schedule are the only ones authorized
Copper-base alloy: u under the Defense Materials System and the
(a) Bar, wire, shapes. Defense Priorities System and must be used
(b) Free cutting brass rod, In accordance with this regulation, DPS Reg.
(c) Other rod.
(d) Sheet, and plate 24 inches wide and
over. '* Cast copper and copper-base alloy shapes
(e) Rolls and strip up to 24 inches in or forms suitable for ultimate use without re-
width, melting, rolling, drawing, extruding, or forg-
(f) Military ammunition cups and discs. ing. (The process of casting includes the re-
(@:) Circles. moval of gates, risers, and sprues, and sand-
(h) Pipe, tube (seamless). blasting, tumbling, and dipping, but does not
COPPER WIRE MILL PRODUCTS
All copper wire and cable for electrical
conduction, including but not limited to:
Bare and tinned.
Weatherproof.
"Stainless steel plates include the follow-
ing size specifications: Me inch (0.1875) or
thicker, over 10 inches wide.
y' Includes anodes-rolled, forged, or
sheared from cathodes.
18 "Copper-base alloy" means any alloy In
the composition of which the percentage of
copper metal equals or exceeds 40 percent by
weight of the metallic content of the alloy.
It does not include alloyed gold produced
in accordance with U.S. Commercial Stand-
ard CS 67-38.
include any further machining or processing.
For centrifugal castings the process includes
the removal of the rough cut in the inner
and/or outer diameter before delivery to a
customer.) Castings include anodes cast in a
foundry or by an ingot maker.
35"Nickel alloys" means those alloys for
which the specified nickel content is 5 per-
cent or more up to and including pure nickel,
and which do not contain as much as 50 per-
cent of iron or steel, nor as much as 40 per-
cent of copper, nor as much as 50 percent of
aluminum. It does not include primary nickel
in the forms of electrolytic cathodes, pigs,
rondelles, Cubes, pellets, shot, oxide (includ-
ing sintered oxide), salts, or chemicals; nor
does it include primary nickel in the form of
ingots used for remelting or powder derived
directly from ore concentratoe~n r does it
include fgrronickel.
FEDERAL REGISTER, VOL. 38, NO. 189-MONDAY, OCTOBER 1, 1973
Approved For Release 2005/03/24: CIA-RDP82M00531 R000800010030-7
 Approved For Release 2005/03/24: CIA-RDP82M00531 R000800010030-7
1 and other applicable regulations and orders
of BCABP.
The symbols are not listed in alphabetical
or numerical sequence but are grouped by
Claimant Agencies and Sub-Claimant Agen-
cies. Within each group, the Claimant and
Sub-Claimant Agencies listed in Column 3
are authorized to employ the program
identifications listed in Column 1 for pur-
poses of placement by them and their sup-
pliers of ACM orders and rated orders in sup-
port of the programs listed In C7ctumn 2.
The full names of the Claimant Agencies
and Sub-Claimant Agencies shown by initials
in Column 3 are:
AEC-Atomio Energy Commission.
BCABP-Bureau of Competitive Assessment
Column 1
id nrtifcatfon
Program Claimant agency Enbelaimant
agency
C-4--=...: Certain munitions items purchased by friendly foreign }
governments through domestic commercials channels
for export.
C-5_. Canadian Military Programs.:::
C-c . Certain direct defense needs of friendly foreign govern-
ments other than Canada.
D-1 . Controlled Materials Producers------------
D-21__.___ Approved state and local civil defense programs
D-3. ____ Further Converters (Steel).------ _....
-------------------
D-4....... Private domestic production ---------------------=-=---~:.
D-6 ------- Private domestic construction __________
D-e___ Canadian production and construction ...........:...:.:_ BCABF
D-7- - ----- Friendly foreign nations (other than Canada) production
and construction.
D-B....... Distributors of controlled materials- __==::_::-:_::::
D-9. _ ..... Maintenance, Repair and Operating Supplies (MRO) (see
Dir. 1 to DMS Reg. 1).
E-rl---- --.: Canadian Atomic Energy Program. ..:::::.:....:.::.::..
K-1.--.--- General Services Administration's Supply Distribution
Facility Program.
AM - Aluminum Controlled Materials Producers- -._
AM-9000 Aluminum Controlled Materials Distributors
FC-------- Further Converters (steel and nickel alloys)---------------
and Business Policy.
CIA-Central Intelligence Agency,
FAA-Federal Aviation Administration.
NASA-National Aeronautics and Space
Administration.
Column 3
Program Program Claimant agency Subclaimant t
agency
For Depart-
ment of
Defense and
associated
programs.
Arcraft_.................................... A-2-------- Missies ._
A-3_ hips ..............
......
A-4 - -anti auioMoUve ........................
A-5
. -,-._ Weapons .......................................... --- 1 -Army.
.
AAmmumuou._ .. ........... wary (auufi.~
A-7-------- Electronic and communications equipment ---------------- Coast Guard).
B-i-------- Military bull ding supplies_________________ Department of Air Force.
B 8---_--_- Production equipment (for defense contractor's account) Defense. CIA.
B-e--.----- Production equipment (Government owned) .............. FAA.
C-2--_----- Department of Defense construction---------------------- NASA:
C-3--_----- Maintenance, repair and operating supplies (MRO) for
Department orf Defense facilities.
C-8_______ f Controlled materials for Defense Industrial Supply Center
Center (DISC). J 11
C-9-?----- Miscellaneous---------------------------
For Atomic
Energy
Commission
programs:
E-l-------- Construction -------------------------.__--`...............
E-2 ........ Operations-including maintenance, repair, and operating AEC
supplies (MRO).
E-8 -------- Privately owned facilities ..................
.__:.------ For other
Defense,
Atomic
Energy, and
related
p B ____ Certain self-authorizing consumers (see see. 8(d) of DMS}BCABP
Reg. 1). 1
State and local governments will be authorized to use the program identification symbol U- only upon applies-
to the nefe_,e niv_; Pre,+^r~~er~edce_e Agency of the Department of Defense, sponsorship by the Office of the As-
sistant Secretary of Defense ifnstalLtions and Logistics) and specific approval by BCABP.
ScaanuLE III To DMS BEG. 1-MiL LEAD Trxas
(See sections 10(0) and 15(b))
Minimum number of days in advance of first day of
month in which Shipment is required
Name of Product 1 Steel Aluminum,
copper,
Carbon strength Stainless Alloy 3 nickel
low-alloy alloys
steel;
Bar, bar shapes (including light shapes):
Bar, hot-rolled stock for projectile and shell
bodies-
Bar, hot-rolled, other (including light shapes).-
Bar, reinforcing (straight lengths-as rolled) . ___
Bar, cold-finished ..............................
Sheet strip (uncoated and coated):
Sheet, hot-rolled---------------_--- _--_=
Sheet, cold-rolled------------------------------
Sheet, galvanized ------------------------------
Sheet, all other mated-------------------------
Sheet, enameling -------------------------------
Roofing, galvanized, corrugated, V-crimped
channel drains- ?--:
Ridge roll , valley and flashing ----------------
?-----------------
Siding corrugated and brick
Strip, hot-rolled --------------------------------
Strip, cold-rolled -----------------c.-_-.........
Strip, galvanized ................. __;...........
Electrical sheet and strip -----------:-
Tin mill black plate ..........................
45 75 ------------ s 75 . ------
3 375 90 376 ------------
45 ------------:----`------ 75 .............
s 75 $105 105 3105 ------------
45 76 90 75 -.-:
45 75 105 90 ............
45 ------------------------------------------------
45 ------------------------------------------------
45 ------------------------------------------------
45 -__.-----
4b ----------------------------------------------
45 ------------------------------------------------
45 75 90 75 ............
745 75 105 90 --------
4b
N> --------------------
-------------- -------------------------
45 ----__------------------------------_-----------
Approved For Release 2005/03/24: CIA-RDP82M00531 R000800010030-7
 Approved For Release 2005/03/24: CIA-RDP82M00531R000800010030-7
Tin plate, hot-dipped __________________________
Ternes, special coated manufacturing---_-_____
Tin plate, electrolytic __________________________
Plate
Structural shapes. Piling______
Pipe, tubing-seamless and welded:
Standard pipe (including couplings furnished
by mill) -------------------------------------
Oil-country goods (casing, tubing and drill
pipe, including type of couplings furnished
by mill) --------------- - ---------------
Line pipe (including couplings furnished by
mill)-----------------------------------------
Pressure tubing________________________________
Mechanical tubing_____________________________
Wire, wire products:
Wire, drawn -----------------------------------
Nails-bright steel wire, steel cut, galvanized,
cement-coated and painted__________________
Spikes and brad's-steel wire, galvanized, and
cement coated ---------------------------- ,--
Staples, bright and galvanized (farm and
poultry) ------------------------ -----------
Wire rope and strand___________________________
Welded wire mesh and woven wire netting-----
Barbed and twisted wire_____________________
Wire fence, woven and welded (farm and poul-
try)-----------------------------------------
Bale ties ---------------------------------------
Coiled automatic baler wire____________________
Tool steel (all forms including die blocks and
tool steel forgings)____________________________
Other mill forms and products (excluding castings
and forgings):
Ingots --------------------------------- -------
Billets, projectile and shell stock---------- ----
Blooms, slabs, other billets, tube rounds, sheet
bars -----------------------------------------
Skelp------------------------------------------
Wire rod------------`--------------------------
Rails-----------
Joint bars (track)______________________________
Tie plates (track)______________________________
Track spikes---- -------------------------
;Copper and copper-base alloy brass mill products:
Copper (unalloyed):
45 ------------------------------------------------
45 ------------------------------------------------
45 ------------
-----------
345 375 90 1675 ------------
45 6 75 3150 90 -___________
45 ------------------------ 60 ------------
45 75 ----------------------------------?
760 ------------ 120 120 ------------
760 ------------ 120 120 ------------
45 75 90 75 -__-______--
45 ----------------- ----------------------------
45
45
45 ------------------------------------------------
45 --`--------- 105 ------------------------
45 --------------------------------?--------------
45 ------------------------------- -
45 ------------------------------------------------
46
45
660 ------------------------ 690 ------------
45 75 76 75 ------------
45 76 ------------ 75 ------------
45 75 75 75 -------_----
45
45 75 90 75 ------------
45 ------------------------ 90 ------------
46 ?. ?.
45 _-----------------------------------------------
45 ---------------?---_??-----?----------------
45 ________________________ 90 ------------
45 ------------------------ 90 ------------
Bar, shapes, wire (except electrical wire)_______________________________________________________
Rod
Sheet, plate, 24 inches wide and over
Rolls and strip up to 24 inches in width- ---?------------------?------------------_?- -
Pipe, tube (seamless)--- ----------------------
Copper-base alloy:
Bar, wire, shapes------------------------------------------------------------------------------
Free cutting brass rod---------------------------------------------------------------- ------
Other rod---------------------------------------------- ------
Sheet, and plate 24 inches wide and over Rolls and strip up to 24 inches in width _ _ ____
45
-- - --------------------------- ------------------------------ -----------------------------
Pipe, tube (seamless) ----------------------------------------------------------
Copper wire mill products:
Copper wire and cable:
Bare and tinned--------------------
Weatherproof-----------------------Magnet wire
Insulated building wire--
Paper and lead power cable------------------------------------
Paper and pulp telephone cable----------------------------------------------------------------
Plastic insulated telephone cable
Asbestos cable
Portable and flexible cord and cable
10 45
1046
Minimum number of days in advance of first day of
month in which shipment is required
Name of Product 6 Steel
Aluminum,
copper,
High- and
Carbon strength Stainless Alloy 6 nickel
low alloy alloys
Communication wire and cable-------------------------------------------- -.-_-_- ___-_ 60
Shipboard cable-------------------------??-------------------------------------------------- 60
Automotive and aircraft wire and cable-------------------------------------------------------- 45
Insulated power cable --------------------------------------------------------------------- '.._- 60
Signal and control cable------------------------------------------------------------------------ 60
Coaxial cable------------------------------------------------------- '': -
Copperclad steel wire containing over 20 percent '?. 45
copper by weight regardless of end use_____________
Copper-clad aluminum wire containing over 20
percent copper by weight regardless of end use______________________________________ 45
Copper and c
b
ll
f
opper-
ase a
oy,
oundry products and
powder:
Copper, brass, and bronze castings----------------------------------------------
Copper, brass, and bronze powder (including cop-
Per powder, granular and flake, and copper-base
alloy powder, granular and flake)_____________________________________ r .r
Rolled bar, rod structural shapes, and bare wire --.-____.r_____________ 00
Aluminu
d
t
m con
uc
or steel reinforced (ACSR) and
bare aluminum cable
-------- __________~._...
Insulated or covered wire or cable _....
-----------------------------
_____________
Extruded bar, rod, shapes, and tube (extruded, drawn
and welded tube)------------ ---------------------------------------------_: 00
Sheet and plate ---- _-------
--------------- 60
----------------------------------------------- Ingot, granular or shot ----------------------------------------------------------------_-_c:c- 60
Molten metal------------- -----------------------------------------------
Foil-----------------------------------------------------------------------------------------------c 60
Powder, flake, paste -------------------------------------------------------------------- 06
Nickel Alloys:
Rods and bars (except anode bars):
Hot-rolled 9o
Forging quality----- -----------------------------------------------------------_- 105
-----------------------
Cold-finished------------------------------------------------- .::.120
Sheet and strip:
Hot-rolled ?:_?' 90
Cold-rolled----------------------------------- _
---?: 1211
Oil - Plat ------------------ 120
Plate 9o
Pipe, tubing ------------------------------------------ ----------------------------------- 120
Wire-------------------------------------------?---------
Other mill forms: ----------- ------ =------ = - - 120
Ingots------------------------------------------------------- -
--------------------------- 75
Blooms, slabs, billets. ----------
Wire rod-------- ' _= = = 90
Powder (produced mechanically from nickel shot) ----------------------------------------- ------=----- 90
Sh
apes and forms not listed above (including anode
bars) ------------------------
1 See definitions contained in footnotes to Schedule I of this regulation.
7 For clad products, add 45 days to lead time indicated.
6 If annealed or heat-treated, add an additional 15 days.
4 For electrical sheet and strip, use this table:
Low --------------------------------------------------- 45 AISI M47, M45, M43, M36.
Medium----------------------------------------------- 45 AISI 5127, M22, 1119.
High-------------------------------------------------- 60 AISI M15 and oriented.
5 Rolled armor plate is subject to negotiation between mill and its customer. If no acceptable arrangements are
worked out, BCABP should be notified.
6 Applies to special rolled shapes including angles and channels.
7 For welded tubing or high carbon spring steel strip, 75 days. -
6 If cold-finished add an additional 15 days.
I Lead time applies to unmanhined castings after approval of patterns for production.
10 For refractory alloys, 60 days.
11 Small simple castings to fit 12x16 inch flask, 7 days.
11 By negotiation between mill and its customer. If no acceptable arrangements are worked out, BCABP should
notified.
FEDERAL REGISTER, VOL. 38, NO. 189-MONDAY, OCTOBER 1, 1973
Approved For Release 2005/03/24: CIA-RDP82M00531 R000800010030-7
Minimum number of days in advance of first day of
month in which shipment is required
Aluminum,
copper
,
High- and
Carbon strength Stainless Alloy 6 nickel
low-alloy alloys
1045
1045
1045
1045
10
 Approved For Release 2005/03/24: CIA-RDP82M00531 R000800010030-7
PROPOSED RULES
SMIEDULv IV TO DM8 REG. 1-MINIMUM MILL QUANTITIES
(SEE SIMMONS 11(A) AND 16 (8))
Carbon Alloy alloys
(pounds)
Steel:
Bar, bar shapes (including light shapes):
Bar, hot-rolled stock for projectile and shell bodies---------------
Bar, hot-rolled,.other (including light shapes):
Round bars up to and including 3 inches, and squares, hexa-
gons half rounds ovals, ete., of approximately equivalent
Minimum quantity for eaoh site and
grade of any item for mill Shipment at
any one time to any one destination
Steel I Aluminum,
copper
and nickel
section area ------___-_--------------------------not tons,,,
Round and square bars ove;: 3 inches to, but not including,
't tons--
Sinches -------- ---------------------__-_-------n(.
Bar-size shapes (angles, to s, channels, and zoos under 3
inches) ---------------- --net -----..__net tons.-
liar: (straight lengths, as rolled) ______________do.
liar, cold-finished----- ---------------------------------do--
Sheet, strip (uncoated and coati (1):
Sheet, hot-rolled---------------------------------------------do--
Sheet, cold-rolled --------- - --------- --------------------- -_do__ ~}
Shoot, galvanized --------- ..-_ -----------------------------------
t
tons--
Sheet, all other coated ---- -. ------------------------no
Sheet, enameling- ------------------------------------------do--
Rooting, galvanized, corrugated V-crimped channel drains-_____
Ridge roll., valley, and flashing ______________--____-________------
9iding, corrugated and brick-----._______-__
Strip, hotrolled ----------- -------------_------------------
Strip, cold-rolled----------- ----------------------------------
Strip, galvanized--.-..----. ..------------------------ -- - ----
Electricalsheetartdstrip. .._____________-.______--_ net tons--
Tin mill black plate------------------------------------ pounds-_
Tin plate, hot-dipped ----------------------- ------------- do----
Ternes, special coated manufacturing ---------------------- do----
Tin plate, electrolytic ----- --------------------- ---------- do....
5 ----------------------------
5 (3) ------------
3
--------------
5 (?). --------------
----------------------------
5 ----------------------------
5 ----------------------------
----------------------------
------ --- ----------- ------
(3~ - --------------
--------------
--------------------
5 ---------------------------
5,000 ----------------------------
5,000 ----------------------------
5,000 ----------------------------
5,000 ----------------------------
Plate:
'
) f)
Rolled arrnor
-
---------- -..'------------ ----- (
---
-
------------------- 'let tons.- 10 (1)
mill productsaa
-
us stri
ti
C
------
-
p
on
nuo
or bar mill production do ---- 3 (3)
universal
Sheared
,
,
structural shapes, piling------------------------------------------------- (3) (3)
Pipe, tubing:
'
)
Standard pipe (including couplings furnished by mill)___________ N) (
oil-country goods (casings, tubular goods, couplings furnished by
---------------------------
mill) -----
-----
.
r
Linepipe(includingcouplings furnished by mill)------ -------------
Pressure and mechanical tubing (seamless and welded):
Seamless old-drawn n (0.1). in inches):
---feet.-
1,000
1,000 -------------
inclusiv,-- ---------- ---------------- do._._
Over 3/n to 1Ss
Soo
S00 _ ------
,
inclusive ------ _----------------------- (lo----
Over l)' to 3
600
600 --------------
,
___________---------------_do----
_
inclusive
Over 5to ii
400
400 --------------
__ ___
_
,
- . __----------------- _---------- (to--.-
Over li
250
250 ______________
- - - --- - -
Seamless hot-rolled ------ - _ ---------------------- --------------
Wehled----------------- -. _------------------------ --------
(.9)
(3)
(3) ______________
(3) ------------
Wire, wire product.:
Wire, drawn--------- ---- -------------------- ---
Nails-bright steel wire, steel i-ut, galvanized, cement-coated, and
painted---------------- ---------------__net tons...
55
------------------------
Spikes and brads--steel wire, ealvanized, c ementagated------ do____
bright and galvanized farra and poultry) ------------- do____
Staples
65
----- _______________________
,
Wire rope and strand -------- ...
(3)
3
-------------- ------
Welded wire nie
---- .. -------------------- ---
sh
(
)
---- ._.-------------------
--------
'
------ -------------------------- not tons--
Woven wire itottirrg
65
-------
-----
Barbed and twisted wire--_... --- ---------------------------do----
6J
5r
-----------------------
Wire fence, woven and welded ,fa-c1 and poultry)___---------- do____
- -_ _____________________________do-_._
Bale ties
6a
------ _------- ______________
----------------
Coiled automatic baler wire -------__--- -- -- --- -----do----
6 5
--------------------------
Tool steel (all forms including (lie mock:, and tool steel forgings)-_pounds__
500
500 ------------
Other mill forms and products (excluding castings and forgiuga):
] l e t ,
6 25
(') --------------
Ingots - - - - - - - - - - - - - - - - - - - - - --------- - - - - - - -
-
------ --------
ck
ll st
d
h
l
(3)
iii --------------
--___________
.
o
e an
s
e
projecti
tune rcunds, sheet bars_______ net tons..
other billets
slabs,
Blooms
625
(3) ______________
,
- _-............ .............. do_.__
,
,
Skelp
26
-------------------------
_.---------------
Wire red ---- ---
(3) --------------
3)
f
Rails and track tu.(.essorn _---------------------------------------
Wheels, rolled or forged (railroad)______________________ ------
Axles (railroad)----------__-_. .. ----------------------- --- -
lb)
,
f3) ---- ----
Copper and copper-base alloy brie. mill products:
((n.,nn. , IT,,, nevnril-
500
1
000
,
----------------- 1
000
-
,
Sheet, plate. 24 inches wide and over-___._...-----------------------------------------------
Rolls and strip rip to 24 i(i,'ltes in width------------------------------------------------------ 2,000
1, 000
Pipe, tulle (scaniless) ------------------------------------------------------
-------?---___---------------'---- - - -------------- ------------------
Copper-base alloy: 500
Bar, wire, shapes- ------------------------------- ____-____-_____________________-___
--- -----------------------------?-------------= 2,000
ss rod
br
i
F
t
a
ree cu
t
ng
----------
-------------------------------------------------------------- 500
Other rod
-
00
--------------------
-
--------------------------------------------------- 2, 0
te 24 inches wide and over
d
l
Sh
t
-
a
, an
ee
p
up to 24 lushes in width--.------------------------------------------------ 2,000
R
ll
tri
nd
0
o
s a
s
p
0
Military ammunition cups and discs ___-___----------------------------------=----- -_____- 6
500
Circles---------------------_ -------------------_-------
Pipe, tube (seamless)--------------------------------------------------------------------- 1,000
See footnotes at end of table.
FEDERAL REGISTER, VOL. 38, NO. 189-MONDAY, OCTOBER 1, 1973
Approved For Release 2005/03/24: CIA-RDP82M00531 R000800010030-7
 Approved For Release 2005/OR&#(5 b1 82M00531 R000800010030-7
27261
Minimum quantity for each sise and
grade of any it. for mill shipment at
any one time to any one destination
Steel' Aluminum,
eadpnickel
Carbon Alloy alloys
(pounds)
Copper wire mill
-------- - - - - - ----------
Aluminum:
Rolled bar, rod structural shapes, and bare wire
Aluminum conuotor steel reinforced (ACSR) and bare alums
num cable -------
Insulated or covered wire or cable bar rod, shapesand tub------------------------------------------------------
Extruded (extruded, drawn and
. welded tubes --------------------------------- --" -------
Sheet and plate---------
------- ------- --
Ingot, granular or shot, and molten metal---- _:._ ------------------
Foil ----------------------------------------------- --------------------------------
P-_-------
owder, flake, paste ---------------------?-----------:.--------------___.---------------t----
Nickel alloys:
Rods and bars (except anode bars):
Hot-rolled -----------------------------------------------------------------------------
Forgng qua)ity------------------------------------------------------------------------------
Cold-finished------------------------------------- ----------------------
Sheet and strip:
Hot-rolled..------------------------------- ----------------------------- ----------------
Cold-rolled ----------------------??--------------------------------------------------------
Foil---------------------------------------------------------------------------------------
Plate------------------------------------- -----------------------??------------------------ -
Pipe,tubing------------------------------------------------
Wire-----------?---------------------------------------------------------------------------------
Other mill forms:
Ingots--------------------------------------------------------------------------------------=
Blooms slabs, billets---------------------------------------------
Wire rod' ---------------------------------------------------------------------------_---------
Powder (produced mechanically from nickel shot) ------- .---- --------------------_---_----_----
Shapes and forms not listed above (including anode bars)---------------------------------------"
I See definitions contained in footnotes to Schedule I of this regulation.
f All stainless steel products are by negotiation. If no acceptable arrangements are worked out, BCABP should be
noied.
I By negotiation between mill and Its customer. If no acceptable arrangements are worked out, BCABP should be
notified.
4 Published carload minimum (mixed sizes and grades).
quantity refers to any assortment of wire merchant trade products.
' For forging quality, product of one heat.
T Product of one heat.
Standard package quantities as published by each mill.
Standard minimum quantities as established by each mill.
SCHEDULE V TO DMS REG. 1-FORMFOR STATEMENT OF REQUIREMENTS FOR CLASS A PRODUCTS
Form DMS-6
(See see. 8(g))
[Budget Bureau No.____]
a. Who may use this form. Any person who
needs information regarding the controlled
material requirements for the production of
Class A products being supplied to him to
fill rated orders may use this Form DMS-6,
or a facsimile thereof, to request his suppliers
of Class A products to submit such require-
ments information to him. This form may be
duplicated in any quantity necessary. The
requesting person must fill in the name and
address of his company in Block 3 and enter
a description of the Class A product for
4. He should also send his supplier, with
copies of the form, a letter describing the
information he desires, the number of copies
he needs, and the time when they should be
submitted to him. He should also refer to
Section 3 of DMS Reg. 1 as his authority for
using this form.
In addition to the eight categories of con-
trolled materials printed in Block 5, the
requesting person may ask for further break-
down of the printed controlled materials cate-
gories. In no case should the further break-
down requested be In any greater detail than
the listing on Form DMS-4S. Such further
breakdown, if requested, shall be supplied on
Form DMS-4S and shall show only the total
requirements which Coincide with those re-
quirements shown in Form DMS-6. Unless
otherwise requested, such total requirements
shall be listed in Column (e), the "Total"
Column, of Form DMS-4S and the quarterly
requirements columns shall remain blank.
b. Who must submit this form. Any pro-
dueer of Class A products who is requested
by his customer to supply the information
called for on this form must submit it in
accordance with Section 3(g) of DMS Reg. 1
and his customer's request.
c. How to fill out this form. A producer
of Class A products who has been requested
by his customer to submit this form must
include the following information:
(1) Enter name and address of submitting
company in Block 1.
(2) Miter name and title of employee of
submitting company to whom communica-
tions should be addressed regarding the in-
formation submitted on this form.
(3) Enter on top line of Block 5, in the
blank space, the number of units of the Class
A product identified in Block 4 covered by
the quantity of materials shown in Column 3
of Block 5. Enter in Column 3 of Block 5 the
quantity of each of the controlled materials
listed in Column 1 required to produce the
number of units of the Class A product de-
scribed in Block 4 Indicated on top line of
U.S. DEPARTMENT OF COMMERCE BUREAU
OF COMPETITIVE ASSESSMENT AND BUSI-
NESS POLICY
Statement of Controlled Material Requirements for
Class A Products
INSTRUCTIONS. Submit to requesting customer the
number of copies he requests and retain one (1) copy.
Read the detailed instructions below before filling out
this form.
Block 5. The quantities entered in Column 3
of Block 5m ti 1 d
1. FROM: (Name and address of company submitting
statement-Street, City, State, ZIP)
2. Name and title of person to communicate with regard-
ing this statement
4. Description of Class A Product. (Give name and
desgription of product or item covered by this
statement)
3. RETURN TO: us nc u e the following:
(Name and address of requesting (I) The quantities of the controlled mate-
customer-Street, City, State, ZIP) rials listed in Column 1 needed by the sub-
[ . mitting producer for incorporation in the
L Class A product produced by him described
in Block 4.
6. Quantity of listed controlled materials required to produce -------------------- unit(s) of the product or item (ii) The quantities of controlled materials
described in block 4.
Column I . Cclumn2 Column 3
Controlled material Unit of measure Quantity
Carbon steel (including wrought Iron) --_------------- Short tons -
Alloy steel (except stainless steel) --------------------- do _
-------------- ------ -----------------------
Stainless steel. ---?------------------- Pounds- -
Copper and copper-base alloy brass mill products ------- - ------ - ----- --
------------- --------------
Copper wire mill products-------------------------------- ---- -do--
Copper and copper-base alloy foundry products and --_-_-_---_ ----------- __"-_-
powder--` -
Aluminum__ .- ?
Nickel - '
alloys -------------
'- -= --?---.......... ----------?---------------------------------------.
listed in Column 1 required for incorpora-
tion in any Class A products (components or
subassemblies) which are produced by sup-
pliers in all degrees of remoteness for incor-
poration in the Class A product produced
by him described in Block 4.
(iii) The quantities of controlled materi-
als listed In Column 1 needed for packaging
or containers required to make delivery of
the Class A product described 1n Block 4.
7. CERTIFICATION: The undersigned com-
pany and the official executing this certifica-
tion on its behalf hereby certify that the in-
formation contained in this report Is correct
FEDERAL REGISTER, VOL. 38, NO. 189-MONDAY, OCTOBER 1; 1973
Approved For Release 2005/03/24: CIA-RDP82M00531 R000800010030-7
 Approved For Release 20%/8P&j6 % DP82M00531 R000800010030-7
ar,d complete to the best of their knowledge
and belief.
--------------------------
(Company name)
By -?--------------------
(Signature of authorized official)
------------------------
(Title)
constituted operating supplies had they
been issued to employees without charge.
(c) "Installation" means the setting
up or relocation of machinery, fixtures,
or equipment in position for service and
connection thereof to existing service
facilities.
(d) "MRO" means materials for main-
tenance, repair, and operating supplies,
and for installation. Materials produced
or obtained for sale to other persons or
for installation upon or attachment to
the property of another person, and ma-
terials required for the production of
such materials are not "MRO" as to the
producer or supplier.
(e) "Established accounting practice"
means, in the case of a person in opera-
tion on or before December 31, 1972, the
accounting practice in use by such per-
son on that date or on the last day of
his operation prior thereto. In the case
of a person whose operation begins after
December 31, 1972, the term means the
accounting practice established by him
in such operation.
(f) "Mandatory acceptance order"
means a rated order, an ACM order or
any other purchase or delivery order
which ii person is required to accept pur-
suant to any regulation or order of
BCABP, or pursuant to a specific au-
thorization or directive of BCABP.
(g) "ACM-DX order" means an au-
thorized controlled material order iden-
tified by the suffix "DX" as provided in
section 5 of DMS Reg. 1.
Sec. 3. Procurement of products and ma-
terials for MRO.
(f) If inability to obtain MRO would
result in failure by a person to fill a
mandatory acceptance order he must ob-
tain such MRO as follows:
(i) In obtaining controlled materials
needed for such MRO he must place
ACM orders in accordance with the pro-
visions of DMS Reg. 1 and must indicate
thereon the program identification D-9
and the calendar quarter in which de-
livery of the controlled materials is re-
quired:: Provided, That if the inability to
obtain such controlled materials would
result in failure to fill a DX rated order
or an ACM-DX order he must identify
his ACM orders with the suffix DX, in
addition to the program identification
D 9 and the quarterly identification.
(2) In obtaining products and mate-
rials other than controlled materials
needed. for such MRO he must place
rated orders in accordance with the pro-
visions of DPS Reg. 1 and must indicate
thereon the rating DO-D-9: Provided,
That if the inability to obtain such prod-
uct $ and materials would result in fail-
ure to fill a'DX rated order or an ACM-
DX order he must use the rating DX-
D-9.
(b) In no event shall a person use the
provisi.ons of this direction to acquire
products and materials in a greater
amount or on an earlier date than re-
quired to provide the MRO necessary to
enable him to fill his mandatory ac-
ceptance orders.
Sec. 4. Applicability of other regulations
and orders.
(a) Any person who is entitled to ob-
tain MRO for a particular purpose under
any other regulation, order, or direction
of BCABP, shall not use the procedures
of this direction to obtain MRO for such
purpose.
(b) Nothing in this direction shall be
construed to relieve any person from
complying with all other applicable reg-
ulations and orders of BCABP. The pro-
visions of DMS Reg. 1 regarding author-
ized controlled material orders, and:the
provisions of DPS Reg. 1 regarding rated
orders, except as otherwise provided in
this direction, shall apply to operations
under this direction.
Sec. 5. Small order exception.
The provisions of this direction regluir-
ing persons to use ratings and program
identifications need not be followed in
the case of any individual purchase order
of $500 or less.
DMS REG. 1, DIR. 2
CONTROLLED MATERIALS PRODUCERS AND
DISTRIBUTORS
_.(Date
DMS REC. 1, MR.
SELF-AUTHORIZATION PROCEDURE FOR MRO
NEEDED TO FILL MANDATORY ACCEPTANCE ORDERS
Sec.
1. What this direction does.
2. Definitions.
3, Procurement of products and materials
for MRO.
4. Applicability of other regulations and
orders.
5. Small order exception.
Section 1 What this direction does.
This amended direction establishes a
self-authorization procedure by which a
person who is unable to fill a mandatory
acceptance order because of inability to
obtain materials for maintenance, re-
pair, and operating supplies and instal-
lation (referred to collectively as
"MRO") is required to use program iden-
tifications and ratings to obtain MRO
needed to enable him to fill such order.
Suppliers of such MRO items obtain
products and materials needed for their
production under the provisions of DPS
Reg. 1, DMS Reg. 1 or other appropriate
regulation or order of BCABP.
Sec. 2.' Definitions.
As used in this direction:
(a) "Maintenance" means the mini-
mum upkeep necessary to continue any
plant, facility, or equipment in sound
working condition. "Repair" means, with
respect to any person, the restoration of
any plant, facility, or equipment to sound
working condition when it has been
rendered unsafe or unfit for service by
wear and tear, damage, failure of parts,
or the like, where such repair is not cap-
italized according to his established ac-
counting practice. Neither "mainte-
nance" nor "repair" includes the
replacement of any plant, facility, or
equipment; :nor does it include the im-
provement of any plant, facility, or
equipment by replacing material which
is still in sound working condition with
material of a new or different kind,
quality, or design.
(b) "Operating supplies" means any
kind of material carried by a person as
operating supplies according to his es-
tablished accounting practice. It in-
cludes expendable tools, jigs, dies, and
fixtures used on production equipment,
regardless of the accounting practice of
the person. It also includes items, such
as hand tools, purchased by an employer
for sale to his employees solely for use
sin his business if such items would have
Sec.
1. What this direction does.
2. Definitions.
3. Rules applicable to controlled materials
producers.
4. Production requirements of controlled
materials producers.
5. Rules applicable to controlled materials
distributors.
6. Small order exception.
Section 1. What this direction does.
This amended direction (formerly Di-
rection 3 to DMS Reg. 1) sets forth cer-
tain rules governing operations of Con-
trolled materials producers and
distributors under the Defense Materials
System. These rules are supplementary
to the provisions of DMS Order 1 (steel),
DMS Order 2 (nickel alloys), DMS Order
3 (aluminum), and DMS Order 4
(copper).
Sec. 2. Definitions.
As used in this direction:
(a) "Mandatory acceptance order"
means an ACM order or any other pur-
chase or delivery order for controlled
materials which a person is required to
accept pursuant to any regulation or
order of BCABP, or pursuant to a specific
authorization or directive of BCABP.
(b) "Lead time" means the period of
time In advance of the month of re-
quired shipment for controlled materials
as specified in Schedule III of DMS
Reg. 1.
(c) "Set-aside" means the amount
and kind of any controlled material
which a person is required to reserve for
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filling mandatory acceptance orders dur-
ing specified periods of time, as pre-
scribed by BCABP.
(d) "ACM-DX order" means an au-
thorized controlled material order iden-
tified by the suffix "DX" as provided in
section 5 of DMS Reg. 1.
(e) "Production material" means, with
respect to any controlled materials pro-
ducer, any products or materials (in-
cluding controlled materials) which will
be physically incorporated into con-
trolled materials which he produces
and the portion of such products
and materials normally consumed or
converted into scrap or by-products
in the course of processing. It also
includes chemicals used directly in
teh production of the materials he
produces, and products ,and materials
used for packaging or containers re-
quired to make delivery of the mate-
rials he produces. It does not include
products and materials for plant im-
provement, expansion or construction,
production equipment, or maintenance,
repair and operating supplies (MRO).
Sec. 3. Rules applicable to controlled
materials producers.
(a) Each controlled materials pro-
ducer must comply with such production
and other directives as may be issued
from time to time by BCABP and with
the provisions of all applicable regula-
tions and orders of BCABP.
(b) A controlled materials producer
must accept all mandatory acceptance
orders; however, he may reject ACM
orders in the following cases, but he shall
not discriminate among customers in
rejecting or accepting such orders:
(1) If the order is received after com-
mencement of lead time: Provided, That
an ACM-DX order must be accepted
without regard to lead time unless it is
impracticable for him to make delivery
within the required delivery month in
which event he must accept such order
for the earliest practicable delivery date.
(2) If the order is one for less than
the minimum mill quantity specified in
Schedule IV of DMS Reg. 1. .
(3) If the person seeking to place
the order is unwilling or unable to meet
such producer's regularly established
prices and terms of sale or payment.
(4) If the order need not be accepted
under the provisions of DMS Order 1
(steel), DMS Order 2 (nickel alloys),
DMS Order 3 (aluminum), DMS Order 4
(copper) or of any other applicable regu-
lation or order of BCABP: Provided,
That acceptance by a controlled ma-
terials producer prior to the date he
opens his order books of (a) an ACM
order directly from the Department of
Defense or the Atomic Energy Commis-
sion or (b) an ACM-DX order, shall not
effect an ppening of his books so as to
require acceptance of other ACM orders:
Provided further, That an ACM-DX or-
der must be accepted even though the
applicable set-aside has been or will be
exceeded by such acceptance.
(c) A controlled materials producer
who receives an ACM order must trans-
mit written notification to the person
who tendered such order of its accept-
once or rejection within ten consecutive
calendar days after its receipt, except
that in the case of an ACM-DX order
such notification must be transmitted
'within five consecutive calendars after
its receipt.
(d) A controlled materials producer
must make shipment on each ACM order
as close to the requested delivery date as
is practicable. If a producer, after accept-
ing an ACM order finds that, due to con-
tingencies Which he could not reasonably
have foreseen, he is obliged to postpone
the shipment date, he must promptly ad-
vise his customer of the approximate
(late when shipment can be made, and
keep his customer advised of any changes
in that date. Shipment of any such
carry-over order must be scheduled and
made in preference to any order origi-
nally scheduled for a later date. When the
new date for shipment on a carry-over
order fails within a later quarter than
that indicated on the original order, the
producer must make shipment on the
basis of the original order even if that
order shows a quarterly identification
earlier than the one in which shipment
is actually made.
Sec. 4 Production requirements of con-
trolled materials producers.
(a) Except as provided in paragraph
(b) of this section, a controlled materials
producer must use the program identifi-
cation D-1 and indicate the calendar
quarter in which delivery is required in
obtaining production materials consist-
ing of controlled materials needed to fill
mandatory acceptance orders or to re-
place in inventory such production ma-
terials which he has used to fill such
orders: Provided, That instead of using
the program identification D-1, (1) a
steel controlled materials producer must
obtain steel controlled materials in ac-
cordance with DMS Order 1, (2) a nickel
alloy controlled materials producer must
obtain nickel alloy controlled materials
in accordance with DMS Order 2, (3) an
aluminum controlled materials producer
must obtain aluminum controlled ma-
terials in accordance with DMS Order 3,
and (4) a copper controlled materials
producer must obtain copper controlled
materials in accordance with DMS Or-
der 4.
(b) Notwithstanding the provisions of
any other regulation or order of BCABP,
a controlled materials producer who re-
quires controlled materials to fill an
ACM-DX order or to replace in inven-
tory controlled materials used to fill an
ACM-DX order must, in addition to com-
plying with the provisions of paragraph
(a) of this section, indicate the suffix
DX on his purchase orders for such con-
trolled materials.
quires production materials other than
controlled materials to fill an ACM-DX
order or to replace in inventory such
production materials used to fill an
ACM-DX order must use the rating
DX-D-1 on his purchase orders for such
production materials.
(e) A controlled, materials producer
may combine his requirements of con-
trolled materials needed to fill manda-
tory acceptance orders in one or more
ACM orders. He may also combine his
requirements for other production ma-
terials needed to fill mandatory accept-
ance orders in one or more rated orders.
In placing such combined orders he must
show the amount of production mate-
rials to which each program identifica-
tion applies.
(f) Persons obtaining controlled ma-
terials or products and materials other
than controlled materials to replace in
inventory materials used to fill manda-
tory acceptance orders pursuant to the
provisions of this section shall place
ACM orders or rated orders, as appro-
priate, for such inventory replacement,
only in the calendar month in which
such products or materials were taken
from inventory to fill such mandatory
acceptance orders, or in the immediately
succeeding two calendar months.
Sec. 5. Rules applicable to controlled
materials distributors.
(a) Each controlled materials distrib??
utor must comply with such directives
as may be issued from time to time by
BCABP and with the provisions of all
applicable regulations and orders of
BCABP.
(b) An ACM order placed with a con??
trolled materials distributor shall be con-?
sidered as calling for immediate delivery
unless such order specifically provides
otherwise.
(c) A controlled materials distributor
must accept all mandatory acceptance
orders; however, he may reject ACM:
orders in the following cases, but he shall.
not discriminate among customers in re-
jecting or accepting such orders:
(1) If the order is not for immediate:
delivery.
(2) If he does not have the material.
ordered in his stock, unless he knows
that such material is in transit to him.
(3) If the person seeking to place the
order is unwilling or unable to meet such
distributor's regularly established prices
and terms of sale or payment.
(4) If the order need not be accepted
under the provisions of DMS Order 1
(steel), DMS Order 2 (nickel alloys),
DMS Order 3 (aluminum), DMS Order
4 (copper) or of any other applicable
regulation or order of BCABP.
(d) Except as provided in paragraph
(C) Except as provided in paragraph (e) of this section, a controlled materials
(d) of this section, a controlled mate- distributor must obtain controlled mate-
rials producer must use the rating DO- rials needed to fill mandatory acceptance
D-1 in obtaining production materials orders or to replace in inventory con-
other than controlled materials needed trolled materials used to. fill such orders
to fill mandatory acceptance orders or to in accordance with the provisions of DMS
replace in inventory such production Order 1 (steel), DMS Order 2 (nickel
m.atllsrials used by him to fill such orders. alloys), DMS Order 3 (aluminum), and
(d) Notwithstanding the provisions of DMS Order 4 (copper).
any other regulation or order of BCABP, (e) Notwithstanding the provisions of
a controlled materials producer who re- any other regulation or order of BCABP,
FEDERAL REGISTER, VOL. 38, NO. 189-MONDAY, OCTOBER 1, 1973
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a controlled materials distributor who re-
quires controlled materials to fill an
ACM-DX order or to replace in inventory
controlled material's used to fill an
AC:M-DX order must, in addition to com-
plying with the provisions of paragraph
(d ~ of this section, indicate the suffix
DX on his purchase orders for such con-
trolled materials.
Ser. G. Small order exception.
The provisions of this direction requir-
ing controlled materials producers and
distributors to use ratings and program
identifications need not be followed in
the case of any individual purchase or-
der of $500 or less.
JIM Doc.73--20610 Filed 9-28-73;8:45 aml
32A CFR Chapter VI ]
DEFENSE PRIORITIES SYSTEM
Basic Rules
Notice is hereby given that the Deputy
Assistant Secretary for Competitive As-
sessment and Business Policy, pursuant
to section 704 of the Defense Production
Act: of 1950, as amended and extended,
and Executive Order 10480, as amended,
is proposing to amend DPS Regulation 1.
Section. 1 describes the contents of and
tells what the proposed amended regula-
tion does.
Interested persons who desire to sub-
mit written views or comments on the
proposed amended regulation should file
them, in triplicate, with the Deputy As-
sistant Secretary for. Competitive Assess-
ment and Business Policy, U.S. Depart-
ment of Commerce, Washington, D.C.
20230, Ref: DPS Reg. 1, on or before No-
vember 30, 1973.
The proposed amended regulation is
presented below:
DPS REG. 1-BASIC RULES OF THE
DEFENSE PRIORITIES SYSTEM
Se e.
I. What this regulation does.
2 Definitions.
. General provisions.
4 Types of ratings and preferential status.
5 Directives and preferential status.
6 Mandatory use of ratings.
7. Self-authorization procedure for rated
orders.
8 Statements and certifications to accom-
pany rated orders.
e Delivery, acceptance and performance
dates for rated orders.
10 Limitations on use of self-authorization.
11 Special priorities authorizations.
12 Expediting assistance and assistance in
placing mandatory acceptance orders.
13. Use of ratings to obtain services.
14 Grouping or combination of orders.
15. Restrictions on placing rated orders and
on use of materials.
16 Sequence of filling rated orders.
17 Rules for acceptance of rated orders.
18, Rules for rejection of rated orders.
19. How changes In Borders affect ratings.
20. Cancellation of ratings.
21. intracolnnpany deliveries.
22, Delivery for unlawful purposes pro-
hibited.
23. Applicability of regulations and orders.
24, Defense against claims for damages.
25. Records and reports.
26. Requests for adjustment or exception.
27. C