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RELEASE 1 igl.Y.2111.5. 

--15tisAitlYME-Nri5 THE AIR FORCE 

WASHINGTON 20330 

OFFIGEOFTHEMCRILTARY 

JUN 2 0 1967 

MEMORANDUM FOR MAJOR GENERAL G. F. KEELING 

SUBJECT: Delegation of Special Authority to the Head of a 

Procuring Activity 

1. In addition to your normal assignment as Deputy Chief 

of Staff, Procurement and Production, Headquarters, Air Force 

Systems Command, you have recently been assigned additional 

duties as Assistant Director, MOL (Procurement). This memorandum prescribes your authorities in that latter capacity. 

2. All procurement authorities presently vested in you 

as DCS/P&P, Hq AFSC, pertain to your additional duty of 

Assistant Director, MOL (Procurement). Pursuant to the 

National Security Act of 1947, as amended; Chapter 137, Title 

10 U.S. Code; Section 8012, Title 10 U.S. Code and other 

pertinent statutes, regulations and directives, you have 

previously been designated as Head of a Procuring Activity (HPA) 

and delegated authority to act for the Secretary of the Air 

Force in the following particulars: 

a. To enter into, approve, and take other action with 

respect to Contracts, Change Notifications, Change Orders, 

Supplemental Agreements, Awards, Letter Contracts, Leases, 

Amendments of Contracts and other contractual instruments; . 

X b. To approve such deviations from the Armed Services 

Procurement Regulations (ASPR) and the Air Force Procurement 

Instructions (AFPI) as the Director of Procurement Policy, 

Deputy Chief of Staff/Systems and Logistics, Hq USAF, is 

authorized to approve. 

3. Additional special authority is required for you to 

discharge your responsibilities as Assistant Director, MOL 

(Procurement). This special authority pertains to covert 

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(i.e., "black") contracts necessary to the DORIAN aspects of 

the MOL Program and presently encompasses work with the 

Eastman Kodak, General Electric, and McDonnell/Douglas companies. 

Under no condition is this special authority applicable to any 

of your responsibilities except as Assistant Director, MOL 

(Procurement). Specifically, in the contracts cited and such 

additional contracts as are approved by appropriate authority, 

the Assistant Director, MOL (Procurement) may omit or change: 

a. ASPR 7-203.7 and 7-104.15 dealing with "Records" 

and "Examination of Records". 

b. ASPR 12-802, "Non-Discrimination of Employment". 

c. ASPR 1-307.2 and 7-104.18, "Priorities Allocations 

and Allotments". 

d. ASPR 12-403, "Davis-Bacon Act". 

e. ASPR 9-203(Z), "Rights in Technical Data". 

f. ASPR 1-109.2 and 1-109.5, "Deviations Affecting 

One Contract or Transaction",. and "Request for Approval of 

Proposed Deviation". 

4. With respect to para 3a above, standard contract clauses 

should be rewritten to provide the following: 

a. In the case of a fixed price subcontract - 

"Possible Audit or Records - In the possibility 

that part or all of the supplies and/or services purchased 

hereunder may be used in the performance of a Government contract, the Seller agrees to retain all of its directly 

pertinent books, documents, papers and records related to this 

contract for a period of three years from the date of final 

payment hereunder, and upon being advised by the buyer or the 

United States Government that the supplies and/or services 

were so used in the performance of a United States Government 

contract, then to make such books, documents, papers and records 

available during said three year period to the Comptroller 

General of the United States, or any of his duly authorized 

__.1 representatives, for examination and audit." sof s Page 

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b. In the case of a CPFF subcontract - 

"Audit of Records - The Seller agrees to maintain 

such records relating to costs reimbursed hereunder as may be 

directed or approved by the buyer. The seller agrees to 

preserve such records for such periods of time, both during 

and subsequent to the performance of work hereunder as may be 

directed by the buyer. For such periods of time, and during 

reasonable office hours, the Seller agrees to make such records 

available at its place of business for inspection and audit by 

the buyer or auditors designated by the buyer." 

c. The Government approval of a subcontract under a 

CPFF contract written with the foregoing clause therein should 

be evidenced by a memorandum, to be executed by the prime contractor and the contracting officer, which stipulates: 

"The Government approval of the above identified 

subcontract was in consideration of the promise of the contractor that the contractor will administer the Audit of Records 

clause therein so that the Government will receive the same 

rights and protection that it would have received had the 

Records clause contained in Contract No. been 

incorporated into the subcontract. Furthermore, in consideration of the Government's approval of the subcontract and the 

reimbursement of costs thereunder, the contractor does hereby 

designate as its auditors under the said Audit of Records clause 

in the subcontract to audit the records of the subcontractor, 

such auditors as may be designated by the Department of the 

Air Force or the Comptroller General of the United States. 

Action taken hereunder will be in consonance with the security 

requirements of the aforementioned contract between the contractor and the Government." 

5. With respect to para 3b above, the omission of the 

Nondiscrimination in Employment clause would be contrary to the 

provisions of Executive Order No. 10925, but is is not believed 

that this deviation would be regarded too seriously, if, in fact, 

the subcontractor's employment practices were equal to or better 

than the standards established by the Executive Order or by the 

President's Committee on Equal Employment Opportunity. To avoid 

any substantive violation of the prescribed standards: 

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a. The proposed subcontractor must already have 

substantial amounts of Government business, and under prime 

contracts or subcontracts that included the standard Nondiscrimination in Employment clause. 

b. The administrative contracting officer must assure 

himself--probably through the prime contractor as a security 

measure--that the proposed subcontractor is fully complying 

with the Nondiscrimination in Employment clauses in his other 

contracts, and that the relationship between the proposed 

subcontract and the other business of the subcontractor is 

such that it would be patently impractical to establish 

standards for the proposed subcontract that would not fully 

comply with the standards of the Nondiscrimination in Employment clause. 

c. The administrative contracting officer must make 

a formal written finding covering this matter which will be 

included in the contract file for the consideration of the 

official making the decision on whether or not the deviation 

should be authorized. 

6. With respect to paras 3b and 3f above, these reports 

are inconsistent with National Reconnaissance Program security 

requirements. So as not to widen unnecessarily groups having 

knowledge of NRP activities, both the report of deviation to 

ASD(I&L) and subcontractor nondiscrimination compliance reports 

are hereby waived. 

7. All contracts which clearly associate MOL with a reconnaissance mission in the National Reconnaissance Program (i.e., 

EK, and pertinent efforts of GE and Douglas) will be safeguarded and handled in accordance with BYEMAN security standards. 

Any contract which could reveal the NRP mission for MOL, or 

hardware for reconnaissance purposes, will likewise be safeguarded and handled in accordance with BYEMAN security standards. 

With regard to the latter, it is particularly important that 

the Assistant Director, MOL (Procurement) exercise his authority 

to approve deviations by permitting appropriate subcontracts to 

be written omitting therefrom all standard Government clauses 

or other references which would identify these subcontracts as 

being related to an MOL contract. 

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8. You will exercise the special authority described in 

pars 3 above personally on an individual contract basis 

pursuant to the procedures and safeguards outlined in paras 4 

through 7. Questions regarding BYEMAN security or past practices 

in this area should be referred to the DNRO or Director, SAFSP, 

as appropriate, for interpretation and guidance. 

9. Changes to the contracts cited in para 3 will not require 

additional approval to exercise your special authority, nor will 

prior approval be required for any other on-going covert contracts 

transferred from SAFSP to MOL; however, new work involving covert . 

contracts or subcontracts will require the one-time approval of 

the DNRO prior to exercising the special authority cited herein. 

10. The special authorities specified in this memorandum 

may not be redelegated without the express approval of the 

Secretary of the Air Force. 

HAROLD BROWN 

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