CHAPTER XIV-THE RENEGOTIATION BOARD SUBCHAPTER A-MILITARY RENEGOTIATION REGULATIONS UNDER THE Part 1400-1420 [Reserved] RENEGOTIATION ACT OF 1948 1421 Authority and organization for renegotiation. 1422 Procedure for renegotiation. 1423 Determination of renegotiable business and costs. 1424 Determination and elimination of excessive profits. 1425 Agreements, clearances and statements. 1427 Military renegotiation forms. 1428 Statutes, orders, and directives. SUBCHAPTER B—THE RENEGOTIATION BOARD REGULATIONS UNDER THE 1951 ACT 1450 Employee responsibilities and conduct. 1451 Scope of Renegotiation Board regulations under the Renegotiation Act of 1951, and definitions applicable thereto. 1452 Prime contracts and subcontracts within the scope of the Act. 1453 Mandatory exemptions from renegotiation. 1454 Partial mandatory exemption of prime contracts and subcontracts for new durable productive equipment. 1455 Permissive exemptions from renegotiation. 1456 Methods of segregating renegotiable and non-renegotiable sales. 1457 Fiscal year basis for renegotiation and exceptions. 1458 Receipts or accruals under statutory minimum. 1459 Costs allocable to and allowable against renegotiable business. 1460 Principles and factors in determining excessive profits. 1461 Recovery of excessive profits after determination. 1462 Renegotiation and taxes. 1463 Interim prepayment of excessive profits. 1464 Consolidated renegotiation of affiliated groups and related groups. 1465 Limitations on commencement and completion of renegotiation. 1466 Termination of renegotiation. Part 1467 Mandatory exemption of contracts and subcontracts for standard commerIcial articles or services. 1470 Information required of contractors. 1471 Assignment of contractors for renegotiation. 1472 Conduct of renegotiation. 1473 Clearance procedure. 1474 Agreement procedure. 1475 Unilateral order procedure. 1476 Review by the Tax Court. 1480 Availability and control of renegotiation records and information. 1490 Brokers and manufacturers' agents. 1498 Forms relating to agreements and orders. 1499 Renegotiation rulings and bulletins. Index to the Renegotiation Board regulations. 1500-1599 [Reserved] SUBCHAPTER A-MILITARY RENEGOTIATION REGULATIONS UNDER THE RENEGOTIATION ACT OF 1948 NOTE: All references in the Military Renegotiation Regulations to any of the following delegatees of the Secretary of Defense pursuant to the Renegotiation Act of 1948, as amended and extended, shall be deemed to be references to The Renegotiation Board: The Secretaries of the Army, the Navy and the Air Force, the Military Renegotiation Policy and Review Board, the Armed Services Renegotiation Board, including the Army, Navy and Air Force Renegotiation Divisions thereof, and the Chairman of said Divisions, (17 F. R. 711, Jan. 24, 1952.) PART 1421-AUTHORITY AND OR- Sec. 1421.142 Patent licenses subject to renegotiation. 1421.143 Allowance of royalties as costs. AUTHORITY: The provisions of this Part 1421 issued under sec. 8, 62 Stat. 259; 50 U.S.C. App., 1193. Subpart A-[Reserved] § 1421.121 Applicability of regulations. § 1421.122 Definition of terms. (a) The terms "the 1948 act," or "the act," mean the Renegotiation Act of 1948. (b) The term "Secretary" means the Secretary of Defense. (c) The terms "renegotiate" and "renegotiation" include a determination by agreement or order under the Renegotiation Act of 1948. (d) The term "excessive profits" means the portion of the profits derived from subject contracts or subcontracts which is determined, in accordance with subsection (b) of the act, to be excessive. (e) The term "profits derived from subject contracts or subcontracts" means the excess of the amounts received or accrued under subject contracts or subcontracts over the costs paid or incurred with respect thereto. (f) The term "subject contracts and subcontracts" means contracts in excess of $1,000 entered into under the authority of the Supplemental National Defense Appropriation Act, 1948, obligating funds appropriated by that act, obligating funds consolidated by that act with funds appropriated therein, or entered into through contract authorizations granted in that act, and all subcontracts in excess of $1,000 under such contracts. In addition it includes any contract or subcontract in excess of $1,000 made subject to the Renegotiation Act of 1948 pursuant to the provisions of section 401 of the Second Deficiency Appropriation Act, 1948, by section 622 of the National Military Establishment Appropriation Act, 1950, or by section 618 of the General Appropriation Act, 1951. (g) The term "subcontract", as used in the act, means any purchase order or agreement in excess of $1,000 to perform all or any part of the work, or to make or furnish any article, required for the performance of any other subject contract or subcontract. (h) The term "article" means any material, part, assembly, machinery, equipment, or other personal property. (i) The terms "received or accrued" and "paid or incurred" shall be construed according to the method of accounting employed by the contractor or subcontractor in keeping his books. (j) The term "contract" is generally used to include a subcontract, except where the distinction between them is clear from the context. (k) The term "contractor" is generally used to include both a contractor and a subcontractor, except where the distinction between them is clear from the context. (1) The term "mandatory statement" means the contractor's report discussed in §§ 1422.222 to 1422.222-7 of this subchapter. (m) The terms "renegotiable business" and "renegotiable sales" mean the business of a contractor or subcontractor under subject contracts or subcontracts which are not exempt. (n) The term "fiscal year" means the taxable year of the contractor or a subcontractor under Chapter 1 of the Internal Revenue Code. (0) The term "Secretary of a Department" means the Secretary of the Department of the Army, the Secretary of the Department of the Navy, or the Secretary of the Department of the Air Force. (p) The term "Policy and Review Board" or "Board" means the Military Renegotiation Policy and Review Board. (q) The term "Renegotiation Board" means the Armed Services Renegotiation Board. (r) The term "Renegotiation Division" means the Army, Navy, or Air Force Division of the Renegotiation Board. (s) The terms "these regulations" or "the regulations" means the Military Renegotiation Regulations promulgated under the act. (t) For the purposes of section 401 of the Second Deficiency Appropriation Act, 1948, "aircraft" means any craft (including without limitation thereto, airplanes, balloons, dirigibles, helicopters and gliders) of a type capable of being flown by a human pilot carried by such craft. (u) For the purpose of section 401 of the Second Deficiency Appropriation Act, "aircraft part" means any item which, at the time of the entering into the contract for its purchase, is intended by the procuring activity to be installed or physically incorporated in aircraft, whether in the original construction of aircraft, or in the repair, maintenance, or modification thereof. It includes, without limitation thereto, ordnance, navigational, electronic, and experimental equipment. It does not include multi-purpose items purchased for stock unless at the time of entering into such contract it is known by the procuring |