§ 507.16 Processing complaints of alleged breach of policies. ( a ) *Suspension or revocation of a certificate of authority to manufacture.* TIOH may suspend or revoke a certificate of authority to manufacture if the manufacturer breaches quality control policies. The term “quality control policies” includes the obligation of a manufacturer to produce insignia in accordance with all applicable Government specifications, manufacturing drawings, and cartoons and other applicable instructions TIOH provided. Breaches of quality control policies may be identified by TIOH through the Quality Control Inspection Program or through registered complaints to TIOH.
( b ) *Reporting alleged breach of quality control.* Complaints and reports of an alleged breach of quality control policies will be forwarded to the Director, The Institute of Heraldry, 9325 Gunston Road, Room S113, Fort Belvoir, VA 22060-5579.
( c ) *Informal investigation of allegations.* The Director may decide to suspend or revoke a certificate of authority to a manufacture based on evidence gathered during a TIOH heraldic quality control inspection or from a registered complaint. The Director may initiate an informal investigation of an allegation of breach(es) of the heraldic quality control policy.
( d ) *Heraldic Quality Control Inspection Program.* ( 1 ) TIOH will conduct periodic quality control inspections of on hand stocks of heraldic items maintained by: ( i ) Exchange military clothing stores.
( ii ) Certified manufacturers.
( 2 ) Upon completion of quality control inspections, TIOH will provide a report of deficiencies to the appropriate retail outlet or Commander, DLA Troop Support, and the certified manufacturer responsible for the production of the item. The notification to the manufacturer will require assurances of compliance with quality control policies. The report of deficiencies will be reviewed upon recertification of the manufacturer. Any recurrence of the same breach will be considered a refusal to perform, and the Director will take further action to suspend or revoke certification.
( e ) *Complaint of alleged breach of quality control policy.* ( 1 ) If an investigation is initiated, the appointed investigator will impartially ascertain facts and gather appropriate evidence to substantiate or invalidate allegations of impropriety. The investigator will submit a report containing a summarized record of the investigation with findings of each allegation and supporting evidence to the Director.
( 2 ) If the investigation substantiates allegation(s) of a breach of quality control, the Director will notify the manufacturer in writing that the Director is contemplating suspending or revoking the certificate. The notification will include: ( i ) The specific allegations and findings of the investigator;
( ii ) All evidence provided to the Director in the investigation;
( iii ) A citation to this part as the authority under which the Director may suspend or revoke the certificate of authority if the situation warrants after the manufacturer has had an opportunity to reply;
( iv ) What actions, if the allegations are undisputed, are required to provide adequate assurance that future performance will conform to quality control policies;
( v ) The right to reply within 45 days of receipt of the notification in order to submit additional materials and evidence for consideration, to refute the allegations, or provide assurances that future performance will conform to quality control policies; and
( vi ) That a failure to reply within 45 days, or if there is any recurrence of the same breach will be considered a refusal to perform, and the Director will take further action to suspend or revoke certification.
( f ) *Refusal to perform.* ( 1 ) If the manufacturer fails to reply within a reasonable time to the letter authorized by paragraph (e) of this section, refuses to give adequate assurances that future performance will conform to quality control policies, indicates by subsequent conduct that the breach is continuous or repetitive, or disputes the allegations of breach, the Director will direct that a public hearing be conducted on the allegations.
( 2 ) A hearing examiner will be appointed by appropriate orders. The examiner may be either a commissioned officer or a civilian employee above the grade of GS-7.
( 3 ) The specific written allegations, together with other pertinent material, will be transmitted to the hearing examiner for introduction as evidence at the hearing.
( 4 ) For failure to return a loaned tool, manufacturers may be suspended without referral to a hearing specified in paragraph (f)(1) of this section; however, the manufacturer will be advised, in writing, that tools are overdue and suspension will take effect if tools are not returned within the specified time.
( g ) *Notification to the manufacturer by examiner.* Within a 7-day period following the receipt by the examiner of the allegations and other pertinent material, the examiner will transmit a registered letter of notification to the manufacturer informing him or her of the— ( 1 ) Specific allegations.
( 2 ) Directive of the Director requiring the holding of a public hearing on the allegations.
( 3 ) Examiner's decision to hold the public hearing at a specific time, date, and place that will be not earlier than 30 days from the date of the letter of notification.
( 4 ) Ultimate authority of the Director to suspend or revoke the certificate of authority if the record developed at the hearing so warrants.
( 5 ) Right to— ( i ) A full and fair public hearing.
( ii ) Be represented by counsel during the hearing at no cost to the Government.
( iii ) Request a change in the date, time, or place of the hearing, for purposes of having reasonable time in which to prepare the case.
( iv ) Submit evidence and present witnesses in his or her own behalf.
( v ) Obtain at no cost a verbatim transcript of the proceedings, upon written request filed before the commencement of the hearing.
( h ) *Public hearing by examiner.* ( 1 ) At the time, date, and place designated in accordance with paragraph (g)(3) of this section, the examiner will conduct the public hearing. ( i ) A verbatim record of the proceedings will be maintained.
( ii ) All previous material received by the examiner will be introduced into evidence and made part of the record.
( iii ) The Government may be represented by counsel at the hearing.
( 2 ) Subsequent to the conclusion of the hearing, the examiner will make specific findings on the record before him or her concerning each allegation.
( 3 ) The complete record of the case will be forwarded to the Director.
( i ) *Action by the Director.* ( 1 ) The Director will review the record of the hearing and either approve or disapprove the findings.
( 2 ) Upon arrival of a finding of breach of quality control policies, the manufacturer will be so advised.
( 3 ) After review of the findings, the certificate of authority may be revoked or suspended. If the certificate of authority is revoked or suspended, the Director will— ( i ) Notify the manufacturer of the revocation or suspension.
( ii ) Remove the manufacturer from the list of certified manufacturers.
( iii ) Inform the Army & Air Force Exchange Service (AAFES) and the Defense Logistics Agency-Troop Support of the action.
( j ) *Reinstatement of certificate of authority.* Upon receipt of adequate assurance that the manufacturer will comply with quality control policies, the Director may reinstate a certificate of authority that has been suspended or revoked.