Artikel 39

1. Procurement of goods and materials in the Federal territory for the Forces and their members against Deutsche Mark or other currencies shall be within periodical programmes, except that the quantities so procured may exceed the quantities settled in such programmes by not more than 10 per cent, or by such larger quantity as may be agreed by the German authorities. These periodical programmes shall take into account building materials as required for the implementation of Article 40 of the present Convention. The programmes shall not include minor procurements made in accordance with the appropriate regulations of the Forces.
2. A Joint Supply Board shall be established, to be composed of representatives of the appropriate authorities of the Three Powers and of representatives of the Federal Republic. The Board shall be responsible for establishing by agreement periodical programmes for the procurement of the requirements of the Forces, and for resolving any difficulties which may arise in the course of the implementation of these programmes.
3. The requirements of the Forces for inclusion in the periodical programmes shall be presented to the Joint Supply Board as early as possible and at least two months before the commencement of the period concerned. The authorities of the Forces shall notify the German authorities, as early as possible, in advance of any major changes in requirements for public utilities (gas, water, electricity, sewage).
4. In arriving at a programme, the Joint Supply Board shall take into account essential defence, export and civilian requirements. The Board shall determine and list goods, materials and services which are in short supply. The Board may require detailed classification of items which require significant quantities of goods, materials or services so listed.
5. The procurement of goods, materials and services, including building services, within the scope of paragraph 1 of this Article, shall be undertaken either directly by the authorities of the Power concerned in accordance with their normal contract procedure or, at their request, by the German authorities. The Federal Republic agrees to take appropriate measures to ensure that these requirements are accorded such priority over domestic and export non-defence requirements as is necessary and appropriate to ensure their timely supply to the Forces.
6. When the authorities of the Power concerned intend to place orders, within the agreed programmes, by direct procurement for goods, materials or services listed as being in short supply, they shall inform the German authorities. If the German authorities should find that, for reasons of supply or capacity, certain firms should be invited to bid, they shall nominate such firms within two weeks at the latest. The authorities of the Power concerned shall take these recommendations into due account in arriving at a final choice of contractors.
7. Information copies of all orders placed directly by the authorities of the Power concerned within the agreed programmes shall be forwarded to the German authorities.
8. When the requirements of the Forces for goods, materials and services are satisfied through procurement by the German authorities, the authorities of the Power concerned shall be entitled to specify their requirements in all respects, including specifications, delivery periods and any other essential conditions. The German authorities, in co-operation with the authorities of the Power concerned, shall ensure that these conditions are met to the satisfaction of the Forces. The authorities of the Power concerned may reject any tender for good and cogent reasons, of which the German authorities shall be informed. Control of manufacturing shall be carried out by the German authorities; representatives of the Power concerned are entitled to participate in inspection. The acceptance of the fulfilment of a contract shall be given to the contractor by the German authorities only with the written consent of the authorities of the Power concerned.
9. The Forces, subject to the provisions of paragraph 1 of this Article, and also members of the Forces, may purchase goods and services locally for their own use under conditions not less favourable than those obtaining generally for residents of the Federal Republic.
10. All periodical requirement programmes for goods, materials and services for the support of the Forces, which have been initiated by the authorities of the Power concerned before the date of entry into force of the present Convention and in respect of which requirements are still outstanding at that date, shall remain valid and shall have effect as programmes established by the Joint Supply Board.
11. Goods procured from Reichsmark or Deutsche Mark occupation cost or mandatory expenditures funds, or from that part of the defence contribution of the Federal Republic which serves to support the Forces, shall not be removed from the Federal territory except such as are required for military purposes for the support of the Forces, or unless it is such military equipment as is customary for military units to take with them on moving. Where the authorities of the Forces decide that they no longer require such goods, they shall be transferred to the German authorities, unless a different arrangement for the disposal of such goods is agreed between them.