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MIL-P-17881D (SHIPS)
4.1.3.3 Disposition. Disposition of the equipment variations shall be as follows:
Type I equipment variations which render the affected
(a) Substandard equipment.
part or parts not suitable for the Navy's intended use by reason of not
meeting minimum requirements or standards shall be rejected, in accordance
with terms of the contract, except on a case-basis when the design review
agency elects to accept such part or parts as suitably modified nonstandard
equipment described hereinafter.
(b) Nonstandard equipment.  When equipment with variations is determined to be
suitable  for the Navy's intended use either in the "as-is" or modified
condition, such part or parts may be accepted as nonstandard parts in accord-
ance with the procedure set forth hereinafter.
4.1.3.4 Conditions for acceptance.
Conditions for acceptance of parts having varia- .
#
tions shall be as follows:
(a) Type I - These variations require contractual action and will be accepted
solely at the discretion of the design review agency on a case basis.
(b) Type II - These variations will be approved when all of the following condi-
tions are met:
(1) Effect of the variation(s) is acceptable to the design review agency.
(2) Rate of incidence of such variations is not unreasonable. Where the
nature of the variation(s) , the quantity of similar variations, or
repetition of the same variations are such as to indicate, in the judg-
ment of the design review agency, lack of proper or effective quality
control, or workmanship such variation(s) may not be-approved.
(3) Where parts involved are normally onboard repair parts, 3 of each such
nonstandard parts or sets of parts shall be furnished at supplier's
expense, consisting of 1 of each as onboard repair parts and 2 of each
as stock repair parts.
(4) Where parts involved are normally stock repair parts but not onboard "
repair parts, 2 of each such special parts or sets of parts shall be
furnished by the suppliers as stock rapair parts.
(S) The repair parts furnished in accordance with (b)(3) and (4) shall consist
of the lowest echelon of the parts required to compensate for the varia-
tion.  For example, the major parts in which the basic error is made
need not necessarily be furnished; if a rotor bearing journal is
machined undersize necessitating the installation of a nonstandard
bearing, repair parts nonstandard bearing shall be furnished, but a
repair parts nonstandard rotor need not be furnished.
(6) Separate provisioning documentation for nonstandard repair parts shall
be submitted in accordance with MIL-P-15137 (see 6.2). The component
involved shall be identified by ship, unit, and component serial number
in the documentation.
(7) An equipment variation summary drawing together with certification that
resultant special parts have been furnished, shall be submitted for all
all type XI variations for each component design furnished under a
contract.
4.1.3.5  Procedure for approval of variations.
#
The following procedure shall be used
for approval of variations:
(a) Type I and II variations shall be referred to the design review agency for
approval via the local DCAS and the procuring agency within 30 days after
occurrence. Submittals shall be in the same manner as established for
submitting drawings.
(b) Each variation referred to the design review agency shall be accompanied by
a letter report containing:
The contract number and item involved.
The date on which the variation was discovered.
The circumstances or conditions under which the variation occurred.
A complete description (including sketch or drawing) of the nature and
extent of the variation.
The corrective measures proposed:
a. For the pert or parts containing variations.
b.  To prevent the reassurance of similar variations.
The effect of the variation as corrected on performance, endurance,
stress levels, and parameters cited in 4.1.3.2 including:
a.  Detailed l ngineering basis for acceptance.
b.  Certification of the part or parts as corrected.
Identification of the benefit to the Government if variation is accepted
as modified.
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