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Approved 1 May 1962
Revised 1 May 1969
Revised 1 September 1973
Revised 1 July 1979
Charter
1. There is created the Armed Services Board of Contract
Appeals which is hereby designated as the authorized representative
of the Secretary of Defense, the Secretary of the Army, the Secretary
of the Navy and the Secretary of the Air Force, in hearing, considering
and determining appeals by contractors from decisions of contracting
officers or their authorized representatives or other authorities on
disputed questions. These appeals may be taken (a) pursuant to the Contract
Disputes Act of 1978 (41 U.S.C. Sect. 601, et seq.), (b) pursuant to
the provisions of contracts requiring the decision by the Secretary
of Defense or by a Secretary of a Military Department or their duly
authorized representative or board, or (c) pursuant to the provisions
of any directive whereby the Secretary of Defense or the Secretary of
a Miliatry Department has granted a right of appeal not contained in
the contract on any matter consistent with the contract appeals procedure.
The Board may determine contract disputes for other departments and
agencies by agreement. The Board shall operate under general policies
established or approved by the Under Secretary of Defense (Research
and Engineering).
2. Membership of the Board shall consist of attorneys
at law who have been qualified in the manner prescribed by the Contract
Disputes Act of 1978. Members of the Board are hereby designated Administrative
Judges. There shall be appointed from the members of the Board a chairman
and two or more vice-chairmen. Appointment of the chairman and vice-chairmen
and other members of the Board shall be made by the Under Secretary
of Defense (Research and Engineering) and the Assistant Secretaries
of the Military Departments responsible for procurement. The chairman
and vice-chairmen shall serve in that capacity for a two-year term unless
sooner removed or reappointed for an additional term or terms. The Under
Secretary will also designate the order in which the vice-chairmen will
act for the chairman in his absence. In the absence of a vice-chairman,
the chairman or acting chairman may designate a member of the Board
to serve as a temporary vice-chairman.
3. It shall be the duty and obligation of the members
of the Armed Services Board of Contract Appeals to decide appeals on
the record of the appeal to the best of their knowledge and ability
in accordance with applicable contract provisions and in accordance
with law and regulation pertinent thereto.
4. The chairman of the Board shall be responsible
for establishing appropriate divisions of the Board to provide for the
most effective and expeditious handling of appeals. He shall be responsible
for assigning appeals to the divisions for decision without regard to
the military department or other procuring agency which entered into
the contract. A division may consist of one or more members of the Board.
The chairman shall designate one member of each division as the division
head. The division heads and the chairman and vice-chairmen shall constitute
the senior deciding group of the Board. A majority of the members of
a division or of the senior deciding group shall constitute a quorum
for the transaction of the business of each, respectively. Decisions
of the Board shall be by majority vote of the members of a division
participating and the chairman and a vice-chariman, unless the chairman
refers the appeal for decision by the senior deciding group. The decision
of the Board in cases so referred to the senior deciding group shall
be by majority vote of the participating members of that group. The
chairman may refer an appeal of unusual difficulty, significant precedential
importance, or serious dispute within the normal decision process for
decision by the senior deciding group. An appeal involving $50,000 or
less may be decided by a single member or fewer members of the Board
than hereinbefore provided for cases of unlimited dollar amount, under
accelerated or expedited procedures as provided in the Rules of the
Board and the Contract Disputes Act of 1978.
5. The Board shall have all powers necessary and incident
to the proper performance of its duties. Subject to the approval of
the Under Secretary of Defense (Research and Engineering) and the Assistant
Secretaries of the Military Departments responsible for procurement,
the Board shall adopt its own methods of procedure, and rules and regulations
for its conduct and for the preparation and presentation of appeals
and issuance of opinions. The Military Departments and other procuring
agencies shall provide legal personnel to prepare and present the contentions
of the departments or agencies in relation to appeals filed with the
Board. It shall not be necessary for the Board, unless it otherwise
desires, to communicate with more than one trial attorney in each of
the department or agencies concerning the preparation and presentation
of appeals and the obtaining of all records deemed by the Board to be
pertinent thereto.
6. Any member of the Board or any examiner, designated
by the chairman, shall be authorized to hold hearings, examine witnesses
and receive evidence and argument for consideration and determination
of the approval by the designated division. A member of the Board shall
have authority to administer oaths and issue subpoenas as specified
in Section 11 of the Contract Disputes Act of 1978. The chairman may
request orders of the court in cases of contumacy or refusal to obey
a subpoena in the manner prescribed in that Section.
7. The Chairman shall be responsible for the internal
organization of the Board and for its administration. He shall provide
within approved ceilings for the staffing of the Board with non-member
personnel, including hearing examiners, as may be required for the performance
of the functions of the Board. The chairman shall appoint a recorder
of the Board. Such personnel shall be responsible to and shall function
under the direction, supervision and control of the chairman.
8. The Board will be serviced by the Department of the
Army for administrative support for its operations as required. Administrative
support will include budgeting, funding, fiscal control, manpower control
and utilization, personnel administration, security administration,
supplies, and other administrative services. The Departments of the
Army, Navy, Air Force and the Office of the Secretary of Defense will
participate in financing the Board's operations on an equal basis and
to the extent determined by the Assistant Secretary of Defense (Comptroller).
The cost of processing appeals for departments and agencies other than
those in the Department of Defense will be reimbursed.
9. The chairman of the Board will furnish the Secretary
of Defense and to the Secretaries of the Military Departments by October
31 each year a report containing and account of the Board's transactions
and proceedings for the preceding fiscal year. Within 30 days following
the close of a calendar quarter, the chairman shall forward a report
of the Board's proceedings for the quarter to the Under Secretary of
Defense (Research and Engineering), the Assistant Secretaries of the
Military Departments responsible for procurement, and to the Director
of the Defense Logistics Agency. Such reports shall disclose the number
of appeals received, cases heard, opinions rendered, current reserve
of pending matters, and such other information as may be required.
10. The Board shall have a seal bearing the following
inscription: "Armed Services Board of Contract Appeals." This seal shall
be affixed to all authentications of copies of records and to such other
instruments as the Board may determine.
11. This revised charter is effective April 21, 1980.
APPROVED:
W. GRAHAM CLAYTON, JR.
Deputy Secretary of Defense
CLIFFORD L. ALEXANDER, JR.
Secretary of the Army
E. HIDALGO
Secretary of the Navy
HANS M. MARK
Secretary of the Air Force
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