[Code of Federal Regulations]

[Title 15, Volume 2]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 15CFR700.17]



[Page 88-89]

 

                  TITLE 15--COMMERCE AND FOREIGN TRADE

 

  CHAPTER VII--BUREAU OF INDUSTRY AND SECURITY, DEPARTMENT OF COMMERCE

 

PART 700_DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM--Table of Contents

 

                     Subpart D_Industrial Priorities

 

Sec. 700.17  Use of rated orders.



    (a) A person must use rated orders to obtain:

    (1) Items which will be physically incorporated into other items to 

fill rated orders, including that portion of such items normally 

consumed, or converted into scrap or by-products, in the course of 

processing;

    (2) Containers or other packaging materials required to make 

delivery of the finished items against rated orders;

    (3) Services, other than contracts of employment, needed to fill 

rated orders; and

    (4) MRO needed to produce the finished items to fill rated orders. 

However, for MRO, the priority rating used must contain the program 

identification symbol H7 along with the rating symbol contained on the 

customer's rated order. For example, a person in receipt of a DO-A3 

rated order, who needs MRO, would place a DO-H7 rated order with the 

person's supplier.

    (b) A person may use a rated order to replace inventoried items 

(including finished items) if such items were used to fill rated orders, 

as follows:

    (1) The order must be placed within 90 days of the date of use of 

the inventory.

    (2) A DO rating symbol and the program identification symbol 

indicated on the customer's rated order must be used on the order. A DX 

rating symbol may not be used even if the inventory was used to fill a 

DX rated order.

    (3) If the priority ratings on rated orders from one customer or 

several customers contain different program identification symbols, the 

rated orders may be combined. In this case, the program identification 

symbol H1 must be used (i.e., DO-H1).

    (c) A person may combine DX and DO rated orders from one customer or 

several customers if the items covered by each level of priority are 

identified separately and clearly. If different program identification 

symbols are indicated on those rated orders of equal priority, the 

person must use the program identification symbol H1 (i.e., DO-H1 or DX-

H1).

    (d) Combining rated and unrated orders. (1) A person may combine 

rated and unrated order quantities on one purchase order provided that:

    (i) The rated quantities are separately and clearly identified; and

    (ii) The four elements of a rated order, as required by Sec. 

700.12, are included on the order with the statement required in Sec. 

700.12(d) modified to read in substance:



    This purchase order contains rated order quantities certified for 

national defense use, and you are required to follow all the provisions 

of the Defense Priorities and Allocations System regulation (15 CFR part 

700) only as it pertains to the rated quantities.



    (2) A supplier must accept or reject the rated portion of the 

purchase order



[[Page 89]]



as provided in Sec. 700.13 and give preferential treatment only to the 

rated quantities as required by this part. This part may not be used to 

give preferential treatment to the unrated portion of the order.

    (3) Any supplier who believes that rated and unrated orders are 

being combined in a manner contrary to the intent of this regulation or 

in a fashion that causes undue or exceptional hardship may submit a 

request for adjustment or exception under Sec. 700.80.

    (e) A person may place a rated order for the minimum commercially 

procurable quantity even if the quantity needed to fill a rated order is 

less than that minimum. However, a person must combine rated orders as 

provided in paragraph (c) of this section, if possible, to obtain 

minimum procurable quantities.

    (f) A person is not required to place a priority rating on an order 

for less than $50,000, or one half of the Federal Acquisition Regulation 

(FAR) Simplified Acquisition Threshold (see FAR 2.101), whichever amount 

is larger, provided that delivery can be obtained in a timely fashion 

without the use of the priority rating.



[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 

amended at 63 FR 31923, June 11, 1998]