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Wednesday, December 2, 1959

FEDERAL REGISTER

amended regulation. Such statement was which were previously covered by Direction formerly permissive in certain situations.
5 to DM S Reg. 1 are subject to the self-au
12 Changes have been made in the selfthorization provisions of Section 9 of this authorization procedure for production of amended regulation.
Class A and Class B products. In addition, 2 A ll the schedules and directions to the former DM S Regs. 1 and 2 are super former differences in self-authorization pro seded by this amended regulation and its cedures for Class A and Class B products have schedules and directions. Included with been eliminated, and producers of Class B
this amended regulation are a new schedule products w ill use their customers program !listing authorized program identifications identifications.
and Allotting Agencies and a new schedule 13 The form o f certification for rated containing a form for statement of controlled orders and ACM orders has been changed.
material requirements. Also included are a 14 Provisions for special identification new direction dealing with an optional small o f ACM orders placed to fill D X rated orders order procedure for Allotting Agencies and form erly covered by Direction 10 to DMS
a new direction dealing with controlled m a Reg. 1 and Direction 4 to DM S Reg. 2 have terials producers and distributors previously been revised and included in this amended covered in the former DM S Reg. 1 . The regulation.
provisions dealing with controlled materials 15 The sections dealing with records producers and distributors w ill be incorpo and reports, and violations, have been re rated in the appropriate controlled material vised.
orders which will be amended and reissued.
16 All adjustments or exceptions pre 3 The definition of controlled materials viously granted to defense contractors are has been adjusted to include nickel alloys revoked 60 days after the effective date of formerly covered by Direction 6 to DM S
this regulation unless renewed.
Reg. 1 in addition to steel, copper and alu
17 Under Direction 3 to this regulation minum. Several m ajor changes have been controlled materials producers and distribu made in the listing of controlled materials tors are required to use program identifica contained in Schedule I of this amended tions in placing orders for products and ma regulation.
Non-nickel-bearing stainless terials needed to fill ACM orders except for steel has been made a controlled material;
individual purchase orders o f $500 qr less.
all steel castings and nickel alloy castings 18 Numerous other changes, simplifica have been deleted; and alum inum molten tions and consolidations have been effected metal, foil, powder, flake and paste have been in this amended regulation, the fu ll text of made controlled materials.
Schedule I
which including its schedules and direc should be carefully studied by defense con tions should be carefully studied by defense tractors and their suppliers for these and contractors and their suppliers.
other changes.
Sec. 2. Transition provisions fo r acquisi 4 Prime consumers receive b u t are no tion o f controlled materials.
longer permitted to make allotments and the term secondary consumer has been elimi a
Nothing in this amended regula nated./ Self-authorizing consumers who ob tion shall be construed to cancel out-"
tain controlledmaterials by self-authoriza standing allotments of controlled mate tion include all manufacturers who produce Class B products pursuant to rated orders, rials for whatever purpose received.
and those producers of Class A products in
However, a person who has received an
cluding construction contractors and persons allotment and who may obtain controlled engaged in research and development who materials for the same purpose by self receive rated orders or contracts and are in authorization pursuant to this amended structed to use the self-authorization provi regulation, shall not use either the allot sions of this amended regulation.
ment or self-authorization to obtain 5 The definitions of Class A product and more controlled materials than needed Class B product have been simplified. In addition, construction projects and research for such purpose.
and development have been added to the b The deletions from and additions definition of Class A product, and designated to items of controlled material made in service operations have been expressly in
Schedule I of this amended regulation cluded in the definition of Class B product.
shall not be construed to affect outstand 6 The definitions of authorized produc tion and construction schedules and their ing orders placed pursuant to any regu lation or order of BDSA.
use have been eliminated. Rating and allot ment authority flows from the rated order or Sec. 3. Definitions.
contract or, where appropriate, from other specific authorization.
As used in this regulation :
7 The term A C M order is used inter a Person means any individual, changeably with authorized controlled mate corporation, partnership, association or rial order.
8 Provisions dealing with statements of any other organized group of persons, and includes any agency of the United requirements have been revised. A new form States Government or any other govern DMS-6 has been provided in Schedule V
of this amended regulation to permit defense ment.
contractors, when necessary, to obtain infor b BDSA means the Business and mation from their suppliers regarding their Défense Services Administration of the controlled materials requirements to produce United States Department of Commerce.
Class A products.
c Controlled material5 means do 9 Only an Allotting Agency may make allotments. Prime consumers and self-au mestic and imported steel, copper, alu thorizing consumers never make allotments. minum, and nickel alloys, in the forms The so-called 85 percent rule for allotments and shapes specified in Schedule I of by prime consumers has been eliminated.
this regulation, whether new, remelted, 10 Use of allotment, rating or self-au rerolled or redrawn.
thorization by producers o f Class A and Class d Claimant Agency means the B products who receive rated orders is com. pletely mandatory except for individual p u r Department of Defense, the Atomic chase orders of $500 or less. The former Energy Commission or any other Gov ernment agency or subdivision thereof provision permitting optional use of such au thority in certain cases has been eliminated. designated as such by the Office of Civil 11 Any person who places a rated order and Defense Mobilization for submission for a Class A or Class B product or who places an ACM order must furnish his supplier with of program requirements.
e Allotting Agency means the De a prescribed statement advising him of the mandatory nature of the rules of this partment of Defense, the Atomic Energy
9597
Commission, BDSA or any other Gov ernment agency or subdivision thereof designated as such by the Office of Civil and Defense Mobilization to make allotments fo r authorized programs.
Schedule n of this regulation lists the Allotting Agencies which have been des ignated to make allotments for specified programs.
f Prime consumer means any per son who receives an allotment of con trolled material from an Allotting Agency. A prime consumer fo r a con struction project may designate another person to act as the prime consumer for him.
g Self-authorizing c o n s u m e r
means any person who receives authority to obtain controlled material by selfauthorization pursuant to the provisions of this regulation.
h Allotment means, with respect to authorized programs, 1 an authori zation by the Office of Civil and Defense Mobilization of the amount and kind of controlled materials which may be re ceived and/or allotted by a Claimant Agency during a specified calendar quar ter, or 2 an authorization by a Claim ant Agency of the amount and kind of controlled materials which may be re ceived and/or allotted by an Allotting Agency during a specified calendar quar ter, or 3 an authorization by an A l lotting Agency of the amount and kind of controlled materials which may be received by a prime consumer during a specified calendar quarter.
i Class A product means any product which contains any controlled material and which is not itself a con. trolled material or a Class B product.
It also includes a construction project or research and development which re quires for its completion any controlled material or Class A product.
j Class B product means any product designated as such in the Offi cial Class B Product List issued by BDSA, as the same may be modified from time to time, which contains any controlled material. It also includes any service designated as a Class B product in said Official Class B Product List such as plating metal products wheth er or not such service employs, consumes or requires any controlled material.
k Authorized program means a military, atomic energy or other program fo r which the use of rating and allot ment authority is specifically approved by the Office o f Civil and Defense Mobilization.
l Delivery order means any pur chase order, contract, shipping or other instruction calling for delivery o f any material or product, or performance of construction or service, on a particular date or dates or within specified periods of time.
m Authorized controlled material order means any delivery order for any controlled material as distinct from a product containing controlled material which is placed pursuant to an allot ment, or pursuant to self-authorization, as provided in section 10 o f this regula tion, or which is specifically designated to be such an order by any regulation or order of BDSA. The term ACM order