Attachment 3_Direttiva SMD Pl-Infra 11_78.pdf

0'C/ LOGJ

SUBJECT: Italian Defen neral Staff DiitiV©, MD -PL Infra i1/78.

"ProMdur to be Followed for the Construct.jon of 1nfras-ruture pf U.S. lnterest in Italy within th P work of the Bilateral Agreement, 20 October 1954's.

TO: See Distribution

.. Reference: Italian Defense General Staff letter, protocol number 144/019256/422, dated 4 December l97 (NOTAL).

2. Transmitted herewith for hour infonnation/acticn i subjec .iirec which has oeen forwarded tc this of4ce by the Defense general gaff lur C.' tribui ...on to all pert:nt U.S. Force Coirniands. T:ie LEGS th ,.eferer.;.:

1.tter al:o invites the 1)ertirlent co;ands to issue such inst cions .., te ie.4uired to insure ti:3t all iters relevant to the rea . atin :,f ..r.rastructure of U.S. interest in italy he handled in compjai. Wi: . the provisions of this directive.

3. Technical questions regarding i.;p1ementation of this direc i e should b referred to the U.S. Army Engineer Division, Europe, for cL.iLfic .n.

iic1: a/s

DISTRIBUT iON:

P C DEFE E ODOPFRATD

E(v1EASBY OP HE UNITEO STATEE AMFICA

APO NEW iK 097P4

7 Decer,. .: 1979

Co1nel, US Army Chief, iDC ltaiy

USCINCEU, ECJ4/7LOE, APC) 09128 (5 copies) US Army Engineer Division, Firope, r\PO 09757 (4 copies) CcNFAIRMED, FPO 521 (6 copies) USPSETPJ, APO 09168 (2 copies) 40'LH TAC GP, APO '293 (2 copies).

7275 ABG. APO 09240 (1 copv' US Coasi. uard, Erpe, FPC 09510 (1 copy) US Embas.y, APO 0i794 (:2 copies)

INDEX

RATIFJCATION OF THE AGREEMENT . . . . Pag. I

INTRODUCTION: . . . . . . . . . ) 1

CHAPTER I : General procedures to be followed for the execution of infrastructure of US interest within the frammework of the Bilateral Agreement of October 20th, 1954 . . . . . . . . ) 3

CHAPTER II : Construction not entailing changes to the cubic capacity or the use of the infra-structure

) 6

CHAPTER III : Construction < prefinanced >> with US funds but not yet included in infra-structure programs of the Alliance . . 7

CHAPTER IV : Construction for v.'hich the US proposes to apply the waiver envisaged in Art.

No. 10, Law No. 765

CHAPTER V : Construction for which the US proposes to employ US military personnel . . 11

CHAPTER VI : Employment of US military personnel for the execution of reinforced concrete works . . . . . . . ) 13

CHAPTER VII : Costs due to the joint requirement for construction, improvements, develop-ments or local utilities not eligible for common funding

) 15

CHAPTER VIII : Procedures to be applied for the construc-tion of infrastructure in a NATO contract but not eligible for NATO common fund-ing

ANNEX I : Procedures for the construction of infra-structure of US interest

ANNEX II Procedures for the execution of prefinan-ced infrastructure of US interest

ANNEX III Request/approval for the construction of infrastructure of US interest included in a NATO project but not eligible for NATO common funding

RATIFiCATION OF THE AGREEMENT

- I -

In the spirit of mutual cooperation and in order to establish a common basis for the execution of Infrastructure projects of United States interest in italy in accordance with the Bilateral A'reement between the two nations dated October 20, 1954, the Governc-ment of Italy has prepared, in cooperation and discussions with the United States representatives, a detailed and comprehensive pro-cedure for the implementation, execution and completion of such projects; and

In order to demonstrate the willingness on the part of the Government of the United States to accept and follow the proce-dures established by the Government of Italy for the execution of such work;

The parties hereto, by their authorized representatives do hereby agree as follows:

The Government of the United States accepts and approves the English language text of the PROCEDURES TO BE FOLLOWED

FOR THE EXECUTION OF THE INFRASTRUCTURE OF UNITED

STATES INTEREST IN ITALY WITHIN THE FRAME WORK

OF THE BILATERAL AGREEMENT OF OCTOBER 20TH, 1954 >.

The Government of Italy acknowledges that the aforementioned procedures have been approved and accepts the approval of the Govern-ment of the United States.

The parties hereto mutually agree that the said procedures will become effective on the day and date written below.

Done in Frankfurt, Germany, this 29 day of october 1979.

Approved in behalf of the Government of the United States

DRAKE WILSON

Major General, USA

Division Engineer U.S. Army Engineer Division, Europe

Acknowledged and accepted in behalf of the Government of Italy

GIUSEPPE LI GRECI

Brigadier General, ITA

Chief, 4th Division

PROCEDURES

--1 ---

INTRODUCTION

1. The Bilateral Agreement of October 20th, 1954 between the Governments of Italy and the United States regulates the utiliz-ation, function, consignment and construction with US funds of infrastructure of interest to the US Armed Forces stationed in Italy for the accomplishment of their mission within the NATO framework.

2. Considering that the foregoing Bilateral Agreement establishes that the infrastructure erected with US funds will eventually be consigned to the Italian Government, the construction of infra-structure is to be considered as < executed on behalf of the Italian Government >. It therefore follows that Geniodife, in compilance with Presidential Decree No. 1479, dated November 18th. 1965, which establishes that Geniodife is juridically responsible for all military construction erected on the national territory, that Genio-dife is also responsible for all US Forces construction in Italy.

It is therefore necessary to ensure that the aforesaid Defense Central body, Geniodife, has the possibility of ascertaining during the final test that US Force construction is in compliance with all national building laws.

3. The agency responsible for the construction of US-funded infra-structure is the Mixed Committee for Construction established by the above mentioned Agreement, divided into two sections. the Italian Section and the US Section.

4. These procedures establish:

a. The procedure to be followed on the occasion of a US request for construction of infrastructure within an installation consiged to the US for their use;

S

S

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Ii The tasks and responsibilities of the Italian Services staff and their bodies concerned.

5. Procedures for determining the <' residual value > of infrastructure consigned/reconsigned to the Italian Armed Forces by the US, are contained in document: << Direttiva SMD/PL Infra-1O/78 >.

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CHAPTER I

GENERAL PROCEDURES TQ BE FOLLOWED FOR THE EXECU-

TION OF INFRASTRUCTURE OF US INTEREST WITHIN THE

FRAMEWORK OF THE BILATERAL AGREEMENT OF OCTOBER

20TH, 1954

The following procedures shall be applied in the implementation of the Memorandum of Understanding for the construction of infrastructure within the framework of the Bilateral Agreement of October 20th, 1954:

1. The US Section of the Mixed Committee for Construction located at LEGHORN shall submit to the corresponding Italian Section a request for new construction including the following documents:

a. The technical plans.

b. A brief statement illustrating:

(1) the purpose of the construction.

(2) the requirements to be met by this construction.

(3) the type of construction.

(4) the relationship of the proposed construction vis a vis the entire installation.

(5). the estimated cost of the construction considered on an individual basis and as a whole.

(6) a statement indicating the proposed construction will not pollute the atmosphere or the environment.

c. Justification for recourse, if required, to the particular proce.

dures set forth in Chapter II - III - IV.

2. The Italian Section of the Mixed Committee for Construciio,:, LEGHORN shall:

a. express its opinion:

- on the actual US need for the requested construction;

- on the characteristics of the construction and relevant costs;

-4-

b. forward the US request, acèompanicd by the documentation specified in pam 1, and the above mentioned opinion:

(1) to the competent Service Staff and, for information, to the Defense General Stall, if the proposdR iiill be carried out in areas of interest of one Service only;

(2) to the Services Stall having a prevailing interest and, for information, to the Defense General Staff and the Ser-

Staffs having a subordinate interest in the matter, should the proposed infrastructure be erected in areas of joint interest.

3. The Services Staffs indirectly concerned shall express their opinion to the Service Stall having prevailing interest.

4. The responsible Service Viaff, after having heard the opinion of the other Services Stalls will communicate to the Defense Gene-ral Stall:

a. its opinion and relevant reasons;

b. the usefulness, on the part of the Italian Armed Forces, of acquiring the infrastructure in the future or the advisability of stating that a portion or all of the proposed new construc-tion is of < no interest > to Italy.

5, The Defense General Staff, after having examined all elements of the matter, and following possible further investigation and eventual submission to the Minister for decision of cases with special aspects or concerning very expensive infrastructure, shall decide whether the construction should he carried out or not and instruct the Ttalian Section of the Mixed Committee for Constrc-

¶ tion accordingly.

6. On the basis of the directives received, the Italian Section of the 0 Mixed Committee for construction, Leghorn shall forward the relevant information to:

a. the US Section, emphasizing the conditions under which the individual construction has been authorized;

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b. the responsible territorial Italian Command;

c.Geniodife.

7. The US Section of the Mixed Committee for Construction and the corresponding Italian Section - in compilance with the pro-cedures established by the Memorandum of Understanding to the Bilateral Agreement of October 20th, 1954 - shall:

a. draw up the project;

b. conduct the contract award process;

c. award construction of the infrastructure by contract; (*)

d. test and accept the infrastructure,

8. Geniodife shall verify, during the final test as appropriate, the actual compliance of the construction with national building re-gulations.

9. Annex I contains an outline of the detailed procedures to be followed and the relevant responsibilities.

NOTE:

(*) The US shall insert in these contracts a clause which foresees a price revision with a threshold of 10o.

- C) -

CHAPTER II

CONSTRUCTION NOT ENTAILING CHANGES TO THE CUBIC

CAPACITY OR THE USE OF TIlE INFRASTRUCTURE

1. The procedures illustrated in Chapter 1 shall not be followed for the execution of the above mentioned construction.

2. The following procedures shall be implemented for this cate-gory of construction:

a. the US Section of the Mixed Committee for Construction shall inform the Italian Section of its intent to initiate the work, attaching to the paper in question a short report:

(1) illustrating the purpose of the construction and the re-quirements intended to be met;

(2) confirming that no changes will be made to the cubic capacity or the use of the infrastructure in question;

(3) indicating the estimated construction cost.

b. The Italian Section of the Mixed Committee for Construction:

(1) will take note of this communication;

(2) inform the Defense General Staff and the Service Staff concerned.

This work, carried out following an independent decision of the US Force agencies, may entail, on the basis of the usefulness to the Italian Forces, an increase in the residual value of the infrastructure in question, when they are consigned to the Italian Government.

--7 -

CHAPTER 111

CONSTRUCTION PREFINANCED WITH US FUNDS BUT NOT

YET INCLUDED iN iNFRASTRUCTURE PROGRAMS OF THE

/ALLIANCE

1. The procedures indicated in Chapter 1 shall be followed also for construction < preiinanced >> by the US but not yet included in the Alliance infrastructure program.

2. However, in order to enable the competent national technical -financial bodies to accomplish all tasks assigned to Italy as the << host nation > - once these projects are, partially or totally, approved by NATO - it is neccsary to apply the following procedures integrating them with those of a general character contained in Chapter 1.

When the construction has been authorized by the Defense Ge-neral Staff:

a. the responsible US authorities, in accordance with existing NATO procedures, shall submit a request to the DGS to, in turn, submit a prefinancing statement to the appropriate NATO agencies.

Such request will become an obligation for the US to assume all the consequent financial responsibilities and risks. (*)

b. the Defense General Staft, the DGS, after having heard the Service Staff concerned and having taken note of the US re-quest, will present a preuinancing statement to the competent agiencies of the Alliance.

NOTE (*):

In special cases the US may elect to make a Notice of intent to prefinance in accordance with NATO Document AC/4 -D/1977.

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c. the US Section of the Mix'd Com'nilice for Co;isiructio,i and the corresponding Italian Section, in compliance with the procedures contained in the Memorandum of Understanding to the Bilateral Agreement of 1954, shall:

(1) prepare the project;

(2) conduct the international tender unless the PP Committee has granted the waiver of the international tender;

(3) award the construction by contract; (*

(4) periodically provide information on the status of the work;

(5) execute the temporary technical and static test of the con-struction;

d. GENIODIFE shall:

(1) ascertain, if appropriate, the actual compliance of the work with national building regulations during the final test;

(2) promote, should the construction he included in the NATO infrastructure program, the ¯JFAJ on the part of the NATO;

e. the Central Office for budget and financial affairs shall:

(1) reimburse expenditures borne by the US for construction of the infrastructure, once the Progress and Payments Com-mittee has provided the funds.

f. GENIODIFE and the US Section of the Mixed Committee for Construction shall:

(1) conjunctivelv submit the technical documentation or the administrative documentation for final JFAI inspection and NATO BOA revision, respectively.

4. Annex II contains an outline of the procedures to he followed and the relevant responsibilities concerning the execution of US pre-financed works.

NOTE (*):

The contracts stipulated by the US Section of the Mixed Commission for Construction shall contain a clause forseeing a price revision with a threshold of 5% in order to narantcc equal treatment between the contractors engaged in NATO construction and those engaged in US prefinanced construction.

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CHAPTER lv

CONSTRUCTION FOR WhiCh THE US PROPOSES TO APPLY

THE WAIVER ENVISAGED IN ART. NO. 10, LAW NO. 675 AND

FOLLOW-ON MODIFICATIONS

1. Art. No. 10, Law No. 765, dated August 6th, 1967 establishes that:

- < As for the construction to he executed on state, owned land, with the exception of those destined for the National Defense, the Ministry of Public Works in collaboration with the Ad-ministrations concerned and after having heard the opinion of the municipality, shall verify that the proposed construction is not in contrast with the provisions of general town-planning or building regulations existing in the relevant municipal ter-ritory >>;

- for the works destined for the National Defense this verifi-cation is not enxisaged.

2. Consequently, in each request for new construction the Italian Section of the Mixed Committee for Construction, shall specify the possible US intention of having recourse to the waiver con-tained in the above mentioned Art. No. 10, citing, in the affer-mative, the operational justification of the proposal. The final decision, whether the proposed construction can he considered a << Defense Infrastructure >, lies within the province of the Defense General Staff after having heard the Service Staff con-cerned.

4.

3. In relation to the above:

a. should the competent national bodies establish that the pro-posed construction is closely associated with the National Defense

--10-

- and consequently the approval of the Ministry of Public Works is not required - the proposed construction can be carried out according to the procedures set forth in Chapter 1;

b. Should the Defense General Stall decide that thc proposed construction is not closely associated with the National Dc -fense;

- the US Section shall forward relevant technical documents

(draft projects) to the Italian Section;

- the Italian Section (directly or through the local military

Engineer Directorates) shall submit the foregoing draft projects to the Municipality concerned, requesting its pre-liminary opinion on the construction of the works (a copy of the documentation shall be forwarded to Geniodife);

- Geniodife, having obtained the entire documentation from the Italian Section. shall request the Ministry of Public Works to grant the approval required for the construction.

4. On completion of the actions outlined above, the Defense Gene-ral Stall - informed by Geniodife of the favourable opinion expressed by the Ministry of Public Works -. will authorize the Italian Section of the Mixed Committee for Construction to provide the US Section the necessary information for the execution of the infrastructure project.

CHAPTER V

CONSTRUCTION FOR WHICH THE US FORCLS PROPOSE TO

EMPLOY US MILiTARY PERSONNEL

1. In compliance with the provisions of the US -I talv Memorandum of Undcrstanding >> on the procedures relevant to construction to be executed within the framework of hilitcral infrastructure, the employment of US military pcronncl in construction work shall be considered as an exeption due to technical reasons or for the need to train US military units. It lies within the province of the Defense General Stall, after havint heard the opinion of the Services Stall concerned, to authorize the employment of US mi-litary personnel.

Consequently:

- the US Section of the Mixed Committee for Construction shall send a request to the Italian Section accompanied by the required technical documentation specified in Chapter I and the justification for proposed use of military personnel for the construction work;

- the Italian Section shall forward to the Service Stall concerned, and for information to the Defense General Stall, the docu-mentation accompanied by a paper expressing its opinion on the matter;

- the Service Stall concerned shall communicate to the Defense General Stall its opinion on the matter;

- the Defense General Stall:

- after having examined the request in detail, taking into ac-count the value of the work, the social -economic conditions of the area, the exigences represented by USA, etc

- subject to a possible submission of the particular case to the Office of Minister of Defense;

- advises the Italian Section of the !\lixcd Committee for Con-struction of the SMD decision regarding execunon of the construct ion in accordance with thc req u i red procedures.

2. Based on the foregoing direction, the Italian Section of the Mixed Committee for Construction, shall communicate the SMD ruling on the case to the US Section.

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CHAPTER VI

EMPLOYMENT OF US MILITARY PERSONNEL FOR THE EXE-

CUTION OF REINFORCED CONCRETE CONSTRUCTION

In compliance with the provisions of the US -Italy MOU >> on pro-cedures relevant to construction to he 1)uilt within the framework of bilateral infrastructure, reinforced concrete work can also be executed utilizing US military personnel, provided that the exeptional circum-stances envisaged in the foregoing MOU and listed i Chapter V exist.

In accordance with Law No. 1086 dated November 5th, 1971, the following procedures shall he implemented in relation to these provects;

a. the US Section of the Mixed Committee for Construction - after having obtained the Defense General Staff's authority to carry out construction employing military personnel, in accordance with the procedures set forth in Chapter III --- shall forward to the Italian Section:

- the documentation listed in Chapter 1;

- tFe relevant projects drawn up - in conformity with existing

Italian Jaws and regulations - by an engineer or an architect registered on the National Professional Rolls.

b. The Italian Section of the Mixed Committee for Construction shall:

- forward the foregoing project accompanied by a paper express-ing its opinion to the responsible Directorate General;

- appoint, on the basis of the proposals made 1w the US Section, a qualified professional i.e. an engineer registered in the Na-tional Professional Rolls to he responsible for the construction work. The costs for surveillance of the work will be borne by the US using agency.

14 -p

c. The Directorate General concerned shall:

- approve the project, pointing out the possible changes to be made;

- verify, through the Italian Engineer Corps executive bodies, in cooperation with the US authorities, the compliance of the work with the project as well as the observance of the regula-tions and the quality of the materials used;

- appoint, at the completion of the work, a technician who shall execute the static load test prior to utilization of the infra-structure;

- provide for the execution, at their expense and responsibility, of the static load test of the facilities, prior to their use, while the US shall furnish the necessary assistance for the perfor-mance of repetition of the test operations.

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CHA1I'ER VII

COSTS DUE TO THE IOINT REQUIREMENT FOR NEW CON.

STRUCTION, iMPROVEMENTS, DEVE! OPMENT.S OR LOCAL

UTILITIES NOT ELIGIBLE FOR COMMON FUNDING

1. Costs resulting from joint US-Italian requirement for new con-struction, improvements or developments which arc determined by NATO as not eligible for common funding shall be apportioned between the Italian and the US Governments based on the ap-portioned use.

2. The costs for local utilities - such as electricity, water, sewage con-nections etc. - shall be shared between the two Governments according to their apportioned use.

3. Financing arrangements for the above shall he without prejudice to the right of either Government to reimbursement or credit (in whole or part) in accordance with NATO infrastructure rules.

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CHAPTER VIII

PROCEDURES TO BE APPLIED FOR THE CONSTRUCTION OF

WORKS INCLUhED IN A NATO CONTRACT BUT NOT ELJBI-

BLE FOR NATO COMMON FUNDING (CONJUNCTIVE FUND-

ING)

1. The procedures apply when -- according to Italian laws and regulations and NATO regulations - Italy constructs on behalf of the US, infrastructure which arc included in a NATO project but exceed the eligibility criteria of the Allience.

The cost for construction in excess of NATO criteria shall be requested by Annex III and be entirely supported by the U.S.

2. The project for these works and relevant contract spcciflcations shall be prepared by the italian Technical Bodies on US request.

3. The Italian Technical Bodies shall:

a. draw up the type B estimate for the entire project for which NATO funding vilI be sought - this action will he supported by the US in its capacity of USER NATION;

b. when the project is elected for NATO funding, conduct the relevant invitation to bid also including the portion exceeding NATO criteria;

c. inform the US as to the outcome of the invitation to bid;

d. award and stipulate the relevant contract when the US has confirmed - by Annex III - that US funds are available for that part of the project exceeding NATO criteria.

4. During the execution of the project -- which shall he performed in acordance with Italian laws and regulations - the US repre

- 17 -sentative will have the right to visit the work sites in coordination with the Italian representatives in order to ascertain the progress of the construction and that the work in their interest is in compliance with contract specifications, and also to witness final inspection and testing operations.

Upon recommendation by the US side, the Director of construc-tion shall give instructions for the execution of possible corrective action as required in the event that deficiencies arc ecountcred.

5. Subject to agreement on the part of the responsible Italian 0111 -cials, the usable portions of the facilities not yet entirely complet-ed may be occupied by the user after the provisional technical test.

6. When - by mutual agreement - the US provides the complete project design of the construction (both the NATO and the US portion), the US shall he entitled to reimbursement of all the design expenditures recognized by NATO.

They viI1 receive 0,50% of the NAE only in the event the project design is performed by an architect/engineer firm.

7. When the design of the works is carried out by Italian Technical Bodies, Italy shall he entitled to reimbursement of the design expenditures determined by NATO, plis 2% of the amount for that portion of the project of exclusive US interest or, alternati-vely, to the corresponWng US share of the AE fee.

8. When the design work is carried out jointly by the two sides, Italy shall be entitled only to reimbursement for the expenditures recognized by NATO.

9. US design expenditures shall he reimbursed by Italy to the US only after payment has been made to I talv by NATO.

10. The NAE for the construction of infrastructure - owed by the US to Italy - shall he broken down as follows:

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a. I 9 upon award of the contract;

b. during the perforniance of works - upon submission of the works by Italy the US shall pay for the share applicable to the construction of their interest plus the remaining 2b

NAE.

11. The above procedures apply to NATO - funded work as well as to works prefinanced by Italy.

12. In case of litigation with the contractor which involves payment of additional sums by the US, the contracting officer shall be consulted prior to any agreement reached with the contractor.

13. All the payments and reimbursements between Italy and the US shall be made in Italian lire.

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ANNEXES

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ANNEX III

REQUEST/APPROVAL FOR TIlE CONSTRUCTiON OF iNFRA -

STRUCTURE OF US INTEREST INCLUDED IN A NATO POIECT

BUT NOT ELIGIBLE FOR NATO COAIIMON FUNDING (CON-

JUNCTIVE FUNDING)

PROJECT:

1. LOCATION:

2. SUMMARY DESCRIPTION OF PROJECT:

3. ESTIMATED COST FOR THE CONSTRUCTION OF THE IN-

FRASTRUCTURE OF US INTEREST:

4. PRICE REVISION SHARE:

5. NAE SHARE:

6. ESTIMATED OVERALL COST:

7. FUNDS AVAILABLE:

a. Design

b. Tender and contract stipulation

c. Responsible agency

8. SERVICES REQUESTED:

a. Design and Type B (IT) (US) estimate

b. Conduct of tender (IT) and contract stipulation

c. Responsible agency and test (IT)

d. Auditing NATO BOA (IT) (US)

_____w.

9. ENCLOSED DOCUMENTS:

10. REMARKS: reference is made to paras 11, 12, and 1 3 of the general provisions of the O.P.A. dated 31 March 1954 which are valid where applicable.

11.US ACCOUNTING DATA

12. PROCEDURES FOR PAYMENT BY TI-JE US FOR TilE SHARE

RELEVANT TO ITEMS EXCEEDING NATO CRITERIA

Payment to he made by check payable to: Ministero Difesa - U1Ti-cio Centrale dcl Bilanclo e degli Affari Finanziari - Via XX Setteb-bre - ROMA - ITALIA >>.

FOR THE U.S.

CONTRACTING OFFICER

APPROVED FOR ITALY

Col. Engineers Corps Senior Officer of the Italian Section mixed Commission

DateS ............................................................. Date