Executive Order 10647—Providing for the Appointment of Certain Persons Under the Defense Production Act of 1950, as Amended

By virtue of the authority vested in me by the Defense Production Act of 1950 (64 Stat. 798), as amended (50 U.S.C. App. 2061 et seq.), hereinafter referred to as the Act, it is hereby ordered as follows:

PART I-DELEGATION OF AUTHORITY

SECTION 101 (a) There is hereby delegated to the head of each department or agency to whom functions are delegated or assigned under the Act the authority vested in the President by subsection 710 (b) (1) of the Act to employ persons of outstanding experience and ability without compensation. The authority delegated by this subsection shall not be redelegated.

(b) There is hereby further delegated to the head of each such department or agency the authority vested in the President by subsection '710 (c) of the Act to employ experts and consultants or organizations thereof. The authority delegated by this subsection shall not be redelegated.

SEC. 102. The head of each department or agency to whom authority is delegated by subsections 101 (a) and 101 (b) of this order shall be guided in the exercise of that authority by the following-described policies:

(a) So far as possible, operations under the Act shall be carried on by full-time, salaried employees of the Government, and appointments under this authority shall, so far as possible, be to advisory or consultative positions only.

(b) Appointments to positions other than advisory or consultative may be made under this authority only when the requirements of the position are such that the incumbent must personally possess outstanding experience and ability not obtainable on a full-time, salaried basis.

(c) In addition to other requirements imposed by this order, the head of the department or agency involved shall, in the appointment of personnel and in assignment of their duties, take steps to avoid, to as great an extent as possible, any conflict between the Government duties and the private interests of such personnel.

SEC. 103. (a) All persons appointed pursuant to the authority delegated by subsection 101 (a) of this order, or appointed pursuant to the authority delegated by subsection 101 (a) of Executive Order No. 10182 1 of November 21, 1950, as amended by Executive Order No. 10205 2 of January 16, 1951, and still employed on the date of this order, shall, when policy matters are involved, be limited to advising appropriate, full-time Government officials who are responsible for making policy decisions.

(b) All persons appointed pursuant to the authority delegated by subsection 101 (b) of this order, or appointed pursuant to the authority delegated by subsection 101 (b) of the said Executive Order No. 10182, as amended, and still employed on the date of this order, shall, when policy matters are involved, be limited to advising appropriate persons who are responsible for making policy decisions or who are authorized to make recommendations with respect to policy matters.

PART II-EXEMPTIONS

SEC. 201. Any person employed pursuant to the authority delegated by subsection 101 (a) of this order is exempted, with respect to such employment, by section 710 (b) (4) of the Act from the operation of sections 281, 283, 284, 434, and 1914 of title 18 of the United States Code, and section 190 of the Revised Statutes (5 U.S.C. 99) except that:

(a) Exemption thereunder does not extend to the negotiation or execution, by such appointee, of Government contracts with the private employer of such appointee or with any corporation, joint stock company, association, firm, partnership, or other entity in the pecuniary profits or contracts of which the appointee has any direct or indirect interest;

(b) Exemption thereunder does not extend to making any recommendation or taking any action with respect to individual applications to the Government for relief or assistance, on appeal or otherwise, made by the private employer of the appointee or by any corporation, joint stock company, association, firm, partnership, or other entity in the pecuniary profits or contracts of which the appointee has any direct or indirect interest;

(c) Exemption thereunder does not extend to the prosecution by the appointee, or participation by the appointee in any fashion in the prosecution, of any claims against the Government involving any matter concerning which the appointee had any responsibility during his employment under subsection 101 (a) of this order during the period of such employment and the further period of two years after the termination of such employment; and

(d) Exemption thereunder does not extend to the receipt or payment of salary in connection with the appointee's Government service from any source other than the private employer of the appointee at the time of his appointment under subsection 101 (a) of this order.

SEC. 202. Any person employed pursuant to the authority delegated by subsection 101 (b) of this order is hereby exempted, with respect to such employment, from the operation of sections 281, 283, and 284 of title 18 of the United States Code, and section 190 of the Revised Statutes (5 U.S.C. 99), except that:

(a) Exemption hereunder shall not extend to the negotiation or execution, by such appointee, of Government contracts with the private employer of such appointee or with any corporation, joint stock company, association, firm, partnership, or other entity in the pecuniary profits or contracts of which the appointee has any direct or indirect interest;

(b) Exemption hereunder shall not extend to making any recommendation or taking any action with respect to individual applications to the Government for relief or assistance, on appeal or otherwise, made by the private employer of the appointee or by any corporation, joint stock company, association, firm, partnership, or other entity in the pecuniary profits or contracts of which the appointee has any direct or indirect interest; and

(c) Exemption hereunder shall not extend to the prosecution by the appointee, or participation by the appointee in any fashion in the prosecution, of any claims against the Government involving any matter concerning which the appointee had any responsibility during his employment under subsection 101 (b) of this order during the period of such employment and the further period of two years after the termination of such employment.

PART III-CERTIFICATIONS, STATEMENTS, AND REPORTS

SEC. 301 (a) Appointments made pursuant to the authority delegated by subsection 101 (a) of this order shall be supported by written certification by the head of the employing department or agency:

(1) That the appointment is necessary and appropriate in order to carry out the provisions of the Act;

(2) That the duties of the position to which the appointment is being made require outstanding experience and ability;

(3) That the appointee has the outstanding experience and ability required by the position; and

(4) That the department or agency head has been unable to obtain a person with the qualifications necessary for the position on a full-time, salaried basis.

(b) The certification required by sub-section (a) of this section shall be accompanied by a statement:

(1) Describing the functions under the Act which the appointee is expected to perform and his responsibilities and duties in performing such functions;

(2) Showing why the head of the department or agency has concluded that the duties of the position require outstanding experience and ability;

(3) Showing the appointee's experience and accomplishments which justify the conclusion of the head of the department or agency that the employee has outstanding experience and ability; and

(4) Setting forth a summary of the reasons why the head of the department or agency has been unable to obtain a person with the qualifications necessary for the position on a full-time, salaried basis.

Sec. 302 (a) The heads of the departments or agencies making appointments pursuant to the authority delegated by subsection 101 (a) of this order shall, within thirty days from the date of appointment, file with the Federal Register Division for publication in the FEDERAL REGISTER a statement including:

(1) The name of the appointee;

(2) The name of the employing department or agency;

(3) The title of the appointee's position; and

(4) The name of the appointee's private employer or employers.

(b) All persons appointed pursuant to the authority delegated by subsection 101 (a) of this order shall, within thirty days from the date of the appointment, file with the Federal Register Division for publication in the FEDERAL REGISTER a statement listing:

(1) The names of any corporation of which he is, or within 60 days preceding his appointment has been, an officer or director;

(2) The names of any corporation in which he owns, or within 60 days preceding his appointment has owned, any stocks, bonds, or other financial interests;

(3) The names of any partnerships in which he is, or within 60 days preceding his appointment has been, a partner; and

(4) The names of any other businesses in which he owns, or within 60 days preceding his appointment has owned, any similar interest.

(c) At the end of each succeeding six-month period, the appointee shall file with the Federal Register Division for publication in the FEDERAL REGISTER a statement showing any changes in such interests during such period.

(d) As used in this section:

(1) The term "owns" or "has owned" refers to any legal or equitable, vested or contingent, interest, however held. The names of corporations, partnerships, or other businesses in which a legal interest is owned by the appointee in a fiduciary capacity shall be listed only when any beneficiary is the spouse, parent, child, brother, or sister of the appointee. The names of corporations, partnerships, or other businesses in which an equitable interest is owned by the appointee shall be listed only when the appointee controls, or participates in the control of, the legal interest. However, the name and nature of the legal interest shall be specified when the appointee owning an equitable interest does not control, or participate in the control of, the legal interest.

(2) The term "other financial interests" includes any direct or indirect interests in the pecuniary profits or contracts of corporations, partnerships, or other businesses, including salaries, commissions, bonuses, options, retirement benefits, severance pay, or like interests, but excludes insurance policies of insurance companies in which the sole interest of the appointee is that policy.

SEC. 303. Persons employed pursuant to the authority delegated by subsection 101 (a) or 101 (b) of this order may be allowed transportation and not to exceed $15 per diem in lieu of subsistence while away from their homes or regular places of business pursuant to such appointment. Persons employed pursuant to the authority delegated by subsection 101 (b) of this order may also be compensated at rates not in excess of $50 per diem.

SEC. 304. All appointments under 710 (b) (1) and 710 (c) of the Act shall be made under the terms of this order. All persons heretofore appointed under subsection 101 (a) of Executive Order No. 10182, as amended by Executive Order No. 10205, who are still employed on the date of this order shall comply with this Part, and, upon compliance, shall be deemed for all purposes to have been appointed under this order and to be subject to its provisions, including the provisions of subsections 302 (a) and 302 (b) relating to statements required thereby, except that statements relating to appointments made under subsection 101 (a) of Executive Order No. 10182, as amended, shall be filed within thirty days from the date of this order.

SEC. 305 (a) At least once every three months the Chairman of the Civil Service Commission shall survey appointments made under the Act. Such survey shall include the following:

(1) A determination whether a statement with respect to each person appointed pursuant to subsection 101 (a) of this order has been filed by the head of the department or agency concerned in accordance with the requirements of subsection 302 (a) of this order;

(2) A determination whether each person appointed pursuant to the said subsection 101 (a) has filed a statement in accordance with the requirements of subsection 302 (b) of this order;

(3) A determination whether each person appointed pursuant to subsection 101 (a) of this order who has served six months or more has filed a statement in accordance with the requirements of subsection 302 (c) of this order;

(4) A determination whether a statement with respect to each person appointed pursuant to subsection 101 (a) of Executive Order No. 10182, as amended by Executive Order No. 10205, has been filed by the head of the department or agency concerned in accordance with the requirements of section 304 of this order;

(5) A determination whether each person appointed pursuant to subsection 101 (a) of the said Executive Order No. 10182, as amended, has filed a statement in accordance with the requirements of section 304 of this order; and

(6) An inspection of individual department and agency files to determine whether the certifications and the statements required by subsections 301 (a) and (b), respectively, of this order have been made.

(b) A report of each such survey shall be made by the Chairman of the Civil Service Commission to the President and to the Joint Committee on Defense Production and shall include the following:

(1) A statistical report showing the number of appointments made pursuant to the authority of this order by each department or agency for the three-month period covered, the total number of such appointees on the rolls of each department or agency, the number of employees serving in advisory or consultative positions, and the number of appointees who are serving in other than consultative or advisory positions;

(2) A list of the names of all appointees for whom the statements required by section 302 of this order have not been filed, and a list of the names of all appointees for whom the certification required by subsection 301 (a) of this order has not been made; and

(3) Such comments or recommendations as the Chairman of the United States Civil Service Commission may deem proper.

SEC. 306. Executive Order No. 10182 of November 21, 1950, and Executive Order No. 10205 of January 16, 1951, are hereby revoked.

DWIGHT D. EISENHOWER

THE WHITE HOUSE,

November 28, 1955.