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Organization and Functions of the 17 1307

Renegotiation Board


The Board is assisted by a staff of professional and other employees, including lawyers, accountants, and business analysts. The major staff units are: Office of the Secretary, Office of Administration, Office of the Economic Advisor, Office of Assignments, Office of Accounting, Office of Review, and Office of General Counsel.

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USE 1 Creation and authority.


2 Purpose. C

3 Organization.
no 22 4 Availability of information.

5 Activities.

1 Creation and authority.—The Renegotiation Board was created by the Renegotiation Act of 1951 (65 Stat. 7, 50 U.S.C. App. 1211) as an independent establishment in the executive branch of the Government and was organized on October 8, 1951, to administer such act. The Renegotiation Act of 1951 transferred to The Renegotiation Board certain powers, functions and duties conferred upon the War Contracts Price Adjustment Board by the Renegotiation Act (58 Stat. 78, as amended; 50 U.S.C. App. 1191). In addition, the Secretary of Defense delegated to The Renegotiation Board, effective January 20, 1952 (17 F.R. 736), all powers, functions and duties conferred upon the Secretary of Defense by the Renegotiation Act of 1948 (62 Stat. 259, as amended and extended; 50 U.S.C. App. 1193).

2 Purpose. The objective of the Renegotiation Act of 1951, as amended, is to eliminate excessive profits derived by contractors and subcontractors in connection with the national defense and space programs.

3 Organization.—The renegotiation activity is carried on by The Renegotiation Board and its regional boards, at the following locations: The Renegotiation Board, 1910 K Street NW., Wash

ington, D.C. 20446.
Eastern Regional Renegotiation Board, 1634 Eye

Street NW., Washington, D.C. 20447.
Western Regional Renegotiation Board, 300 North
Los Angeles Street, Los Angeles, Calif. 90012.

The Renegotiation Board is composed of
five members. Each is appointed by the Presi-
dent, by and with the advice and consent of
the Senate. The President designates one
member to serve as Chairman.

FIELD ORGANIZATION Each regional board is composed of a Chairman and additional Board members as appointed by the Board. Each regional board is assisted by a staff consisting of the Divisions of Administration, Accounting, Procurement Affairs, and Renegotiating, and the Office of the Regional Counsel, with functions comparable to the corresponding staff units in the Board.

4 Availability of information.—Requests for general information about renegotiation should be directed to The Renegotiation Board, 1910 K Street NW., Washington, D.C. 20446, as follows: On matters relating to filing requirements, to the Director, Office of Assignments; on matters relating to interpretations of the act or regulations, to the General Counsel; on matters relating to employment with the Board, to the Director, Office of Administration; on other matters of a general nature, to the Secretary to the Board.

Forms and instructions for filing negotiation reports may be obtained at the headquarters of the Board, from the Director, Office of Assignments; and from the Chairmen of the respective regional boards. Such materials may also be obtained in person at the field offices of the Department of Commerce.

Official copies of the statutes referred to herein may be obtained from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

The Renegotiation Board Regulations and current supplements thereto may be pur


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wy subscription from the Superin- the contractor declines to enter into an
tendent of Documents, U.S. Government agreement, the regional board issues an or-
Printing Office, Washington, D.C. 20402. The der directing the payment of the refund.
subscription includes Renegotiation Bulle- From such an order, the contractor has a
tins and Renegotiation Rulings.

right of appeal to the Board.
General rules for the time, place, and man- In cases involving renegotiable profits of
ner of filing information and requests with more than $800,000 (Class A cases), the re-
the Board and the regional boards in partic- gional boards do not have final authority,
ular renegotiation proceedings are set forth and their recommendations must be ap-
at appropriate places in the Renegotiation proved by the Board before refund agree-
Board Regulations.

ments may be executed or clearances issued.
5 Activities. The Renegotiation Act of

If a regional board recommendation is not

acceptable to either the Board or the contrac1951 is applicable to contracts with the fol

tor, the case is reassigned from the regional
lowing departments and agencies of the Gov-

board to the Board for further processing and
ernment, and related subcontracts: The De-
partments of Defense, Army, Navy, and Air


If, after further proceedings, the Board
Force, the Maritime Administration, the

and the contractor are unable to agree upon General Services Administration, the Atomic

the amount of excessive profits, if any, to be Energy Commission, the National Aeronau

refunded by the contractor for such fiscal tics and space Administration, and the Fed

year, the Board issues and enters an order eral Aviation Agency (now the Federal Avia

determining such amount. A de novo redetion Administration). Effective August 12,

termination may be obtained, by petition, in 1961, the Federal Maritime Board, also

the Tax Court of the United States. Decisions named in the act, was abolished and its con

of the Tax Court are reviewable on limited tracting authority transferred to the Mari

grounds in the courts of appeals. time Administration.

The Board maintains liaison with the vari-
A report must be filed with the Board by

ous agencies whose contracts are subject to every contractor whose receipts or accruals

the Renegotiation Act of 1951, and with the from renegotiable prime contracts and sub

Department of Justice, the Internal Revenue contracts during its fiscal year exceed the

Service, and other agencies whose jurisdicminimum amount prescribed in the act, but

tion or activities relate to the functions of a report may be filed by any other contractor

the Board. The Board also furnishes renegohaving renegotiable business. All such re

tiation information to Government procureports are examined at the headquarters of

ment agencies when necessary or approprithe Board. Filings which show aggregate re

ate in furtherance of their procurement acnegotiable sales below the statutory "floor"

tivities. are reviewed to determine their acceptabil

Responsibility for the collection of amounts ity. Above-the-floor filings contain detailed

payable under a renegotiation agreement or financial and other information. If such re

order is assigned to the agency whose conports are not cleared after initial examina

tracts are predominantly involved in the partion at the headquarters, they are assigned to

ticular case. the regional boards for renegotiation, usually

6 Seal. The seal of the Board shall be on a geographic basis. In the course of the subsequent proceedings, additional pertinent

judicially noticed. A facsimile is set forth

below: information is obtained, when necessary, by correspondence or meetings with the contractor. The board has delegated to the regional

UNITED STATES boards final authority to issue clearances or

OF make refund agreements in cases involving

AMERICA aggregate renegotiable profits of $800,000 or less (Class B cases). If, in a refund case,

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1 1 1 1 2 2







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Enclosed herewith is the 22nd series of revised pages of RENEGOTIATION BOARD REGULATIONS. Amendment No. 21 gave effect to all amendments and additions published in the Federal Register on or before March 1, 1967. This publication gives effect to all later amendments and additions published in the Federal Register on or before July 15, 1967. The enclosed pages should be inserted in the regulations in accordance with the filing instructions set forth below. When old pages are removed, they may be thrown away unless it is desired to preserve them for reference.


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Statement of organization and functions completely revised.
Part 1452, Table of Contents corrected.
$ 1452.7(a), "art" corrected to "part" in paragraph 3(C) of

statutory provision.
$ 1453.3 (d) (2) (i), "1965" changed to "1966."
$ 1453.5 (g) revoked.
Part 1454, Table of Contents corrected.
$ 1455.6 (b), "1967" changed to "1968" in title and text.
§ 1456.3 (b) (3), "used" corrected to "issued.”
$ 1456.4 (b) (1), last sentence removed to Appendix.
Part 1457, Table of Contents revised.
$ 1457.9, section completely revised.
Part 1459, Table of Contents corrected to add $ 1459.J.
$ 1459.7(c), paragraph designation corrected.
Part 1460, Table of Contents corrected to add $ 146 .
Part 1461, Table of Contents corrected ($ 14613).
Part 1463, Table of Contents corrected (§ 1463.4).
Part 1464, Table of Contents revised ($1464.12).
§ 1464.12 completely revised.
$ 1467.26 (b) (3) added.
$ 1467.30 (b) (3) added.
Part 1470, Table of Contents revised ($ 1470.92).
$ 1470.92 completely revised.
Part 1477, Table of Contents corrected to add $147: 4 and

$ 1477.5.
Part 1480 completely revised.
$ 1498.8(a) and (h), Letters not to proceed (Regione)

Indo sed.


Appendix is listele




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