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Organization and Functions of The

Renegotiation Board

principal office of the Board is located at 1910 K Street NW., Washington, D.C., 20446.

(b) The Board maintains two regional boards with authority to conduct renegotiation proceedings in cases assigned to them. Each of the regional boards is composed of a chairman and additional board members as appointed by the Board. After the Board determines that a contractor should be assigned for renegotiation, the case is assigned to a regional board selected according to its proximity, its relative work load, and its experience and special skills. The locations of the regional boards are as follows:


1 Creation and authority
2 Purpose.
3 Organization.
4 Activities.
5 Official copies.
6 Copies of the Renegotiation Board Regulations.

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 and the previous renegotiation statutes is to eliminate excessive profits derived by contractors and subcontractors in connection with the national defense program.

3 Organization.-(a) The Renegotiation Board is composed of five members. Each is appointed by the President by and with the advice and consent of the Senate. The Secretaries of the Army, the Navy and the Air Force, subject to the approval of the Secretary of Defense, and the Administrator of General Services each recommend to the President for his consideration one person from civilian life to serve as a member of the Board. The President designates one member to serve as Chairman. The

(1) Eastern Regional Renegotiation Board, 1634 Eye

Street NW., Washington, D.C., 20447. (2) Western Regional Renegotiation Board, 320 North

Vermont Avenue, Los Angeles, California, 90004. 4 Activities.—(a) The Renegotiation Act of 1951 is applicable to contracts with the military departments and certain other agencies of the Government named in the act, and to related subcontracts. As originally enacted, the act applied also to contracts with such other agencies of the Government exercising functions having a direct and immediate connection with the national defense as the President might designate. Various additional agencies were designated by the President in Executive Orders 10260, June 27, 1951 (16 F.R. 6271); 10294, September 28, 1951 (16 F.R. 9927); 10299, October 31, 1951 (16 F.R. 11136); 10367, June 30, 1952 (17 F.R. 5932); and 10567, September 29, 1954 (F.R. 6361).

(b) By amendment to the act effective December 31, 1956, all agencies so named or designated ceased to be "Departments" for the purposes of the act, except the Departments

Sec 14 14 14 1

of Defense, Army, Navy and Air Force, the agreements and orders under the Renegotiation Maritime Administration, the Federal Mari- Act of 1951 is carried out by the heads of the time Board, the General Services Administra- agencies whose contracts are subject to such act; tion, and the Atomic Energy Commission. The the administration of renegotiation agreements President was given the power, during a na- and orders under the Renegotiation Act of 1948 tional emergency proclaimed by the President has been delegated to the Secretary of Defense, or declared by the Congress after the date of who in turn has redelegated such function to much amendment, to designate as a Department the Secretaries of the Army, the Navy, and the any other agency of the Government exercising Air Force; the administration of renegotiation functions having a direct and immediate con- agreements and orders under the Renegotiation nection with the national defense, any such Act has been delegated to the heads of the designation ceasing to be in effect on the last agencies whose contracts were subject to the act. day of the month during which such emer- (f) The Board maintains liaison with the gency is terminated. By amendment approved various agencies whose contracts are subject to September 6, 1958, the National Aeronautics

the Renegotiation Act of 1951, and with the Deand Space Administration was added as a De- partment of Justice, the Internal Revenue partment under the act.

Service, and other agencies whose jurisdiction (c) For fiscal years ending on or before or activities relate to the functions of the Board. June 30, 1956, every contractor is required to The Board also disseminates renegotiation refile an annual report with respect to its receipts sults and information to Government procureor accruals from renegotiable prime contracts ment personnel for use in reprocurement, forand subcontracts during its fiscal year. For ward pricing and price redetermination profiscal years ending after June 30, 1956, this re

ceedings, as a means of avoiding excessive port is required to be filed only by those con- profits to contractors and excessive costs to the tractors whose renegotiable sales exceed the Government in the execution of the national minimum amount prescribed in the act, but it may be filed by any other contractor. The


Official copies.-Official copies of the mandatory filing includes detailed financial statutes referred to herein may be obtained and other information. Additional pertinent from the Superintendent of Documents, U.S. information is accumulated by the Board in Government Printing Office, Washington, D.C., the course of meetings with contractors whose 20402. Official copies of Executive Orders cited renegotiable sales exceed the statutory mini- herein are set out in the Federal Register, which mum. If the Board and the contractor are

may also be procured from the Superintendent unable to agree upon the amount of excessive of Documents. profits, if any, to be refunded by the contractor 6 Copies of the Renegotiation Board Regfor such fiscal year, the Board issues and enters ulations.—The Renegotiation Board Regulaan order determining such amount. The order tions and current supplements thereto may be is reviewable in The Tax Court of the United obtained from the Superintendent of DocuStates.

ments, U.S. Government Printing Office, Wash(d) Cases are normally assigned in the first ington, D.C., 20402. instance to one of the regional boards, to which 7 Seal. The seal of the Board shall be the Board has delegated authority to make de- judicially noticed. A facsimile is set forth terminations of excessive profits in cases in- below: volving a net profit on renegotiable business not in excess of $800,000 for a fiscal year and to make recommended determinations to the Board of excessive profits in cases exceeding that amount, for final determination by the Board.

(e) The administration of renegotiation

defense program.




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Renega beads of

Part 1450 Employee Responsibilities and Conduct

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impartiality, and conduct by Government employees and special Government employees is essential to assure the proper performance of the Government business and the maintenance of confidence by citizens in their Government. The avoidence of misconduct and conflicts of interest on the part of Government employees and special Government employees through informed judgment is indispensable to the maintenance of these standards. To accord with these concepts, this part prescribes standards of conduct and responsibilities of employees and special Government employees, and governs statements reporting employment and financial interests of such employees.

1450.735–2 Definitions. As used in this part:

(a) “Board" means The Renegotiation Board, including the regional boards, except when the context indicates otherwise.

(b) “Employee" means a member or employee of the Board, but does not include a special Government employee.

(c) “Executive order” means Executive Order No. 11222 of May 8, 1965.

(d) “Person" means an individual, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company, or any other organization or institution.

(e) “Special Government employee” means a "special Government employee” as defined in section 202 of Title 18 of the United States Code, such as a consultant, expert, etc., who is employed by the Board,

1450.735-3 Interpretation and advisory service.--(a) The Board shall designate a counselor for the Board, who shall also serve as the designee of the Board to the Civil Service Commission, on matters covered by this part. Such counselor shall be responsible for coordination of the Board's counseling services provided under this section, and for assuring that counseling and interpretations on questions of conflicts of interest and other matters covered by this part are available to deputy counselors designated under paragraph (b) of this section.

(b) The Board shall designate a deputy counselor for the headquarters office of the Board and for each regional board. Such deputy



1450.735-41 Form and content of statements.
1450.735–42 Employees required to submit statements.
1450.735 43 Employees not required to submit state-

1450.735–44 Time and place for submission of em-

ployees' statements.
1450.735–45 Supplementary statements.
1450.735-46 Interests of employees' relatives.
1450.735-47 Information not known by employees.
1450.73548 Information prohibited.
1450.735-49 Confidentiality of statements.
1450.735-50 Effect of statements on other require-

1450.735–51 Specific provisions for special Govern-

ment employees.
AUTHORITY: The provisions of this Part 1450 issued
under section 702, E.O, 11222, 30 F.R. 6469, 3 CFR,
1965 Supp. ; 5 CFR 735.104.


1450.735-1 Purpose.—The maintenance of unusually high standards of honesty, integrity,


counselors shall give advice and guidance to Government employee will be provided an opeach employee or special Government employee portunity to explain to the Board the conflict in their respective locations who seeks advice

or appearance of conflict. and guidance on questions of conflicts of in- 1450.735-5 Disciplinary and other remeterest or other matters covered by this part. dial action.—(a) Any violation of the regulaThe deputy counselors shall report to the coun- tions in this part, by an employee or special selor at such times and in such manner as the Government employee, may be cause for discounselor shall prescribe.

ciplinary action, which may be in addtion to (c) Employees and special Government em- any penalty prescribed by law. ployees are strongly urged to feel free to seek (b) When, after consideration of the exadvice and guidance from the appropriate dep- planation of the employee or special Governuty counselor on questions of conflicts of interest ment employee provided by $ 1450.735-4(b), the and other matters covered by this part, so that Board decides that remedial action is required, the requirements of proper conduct may be the Board will take immediate action to end the fully understood and observed at all times. conflicts or appearance of conflicts of interest.

(d) Counseling service shall be available to (c) Remedial action under paragraph (a) employees and special Government employees or (b) of this section may include, but is not during the hours of business of the Board, or limited to: a regional board, upon request to the appro

(1) Changes in assigned duties; priate deputy counselor.

(2) Divestment by the employee or special 1450.735_4 Reviewing statements and re

Government employee of his conflicting inter

est; porting conflicts of interest.-(a) Statements of employment and financial interests of each

(3) Disqualification for a particular assign

ment; or employee and special Government employee, submitted under Subpart D of this part, shall

(4) Disciplinary action. be submitted to the counselor designated pur

Remedial action, whether disciplinary or othersuant to section 1450.735-3(a), who shall review wise, will be effected in accordance with any such statements for conflicts of interest or ap- applicable laws, Executive orders, and regula

tions. parent conflicts of interest.

(b) When a statement submitted under Sub- 1450.735-6 Notice to employees. Within part D of this part, or information from other twenty (20) days after the effective date of the sources, indicates in the judgment of the coun- regulations in this part, or of any amendment selor a conflict between the interests of an em- thereto, each employee and special Government ployee or special Government employee and the employee shall be provided with a copy of this performance of his services for the Board, the part, or of such amendment. Each new emcounselor, or at his request the appropriate dep- ployee or special Government employee aputy counselor, shall consult with such employee pointed thereafter shall be provided with a copy or special Government employee, and when of this part, and all amendments thereto, at the necessary with his superior, in a effort to resolve time of his entrance on duty. At least semithe conflict or appearance of conflict by any of annually, the regulations in this part shall be the methods described in subparagraphs (1), brought to the attention of all employees and (2), and (3) of $ 1450.735-5 (c). If the matter special Government employees, each of whom is not resolved to the satisfaction of the coun- shall be required at each such time to execute a selor, the information concerning the conflict or

statement in form as follows: appearance of conflict shall be reported to the I have read and I understand the provisions Board by the counselor for disciplinary or other of Part 1450 of the Renegotiation Board Reguremedial action pursuant to the provisions of lations, and I agree to abide thereby as long as I $ 1450.735-5. In the latter event, written no

remain an employee of The Renegotiation tice of such referral to the Board shall be given

Board. by the counselor to the affected employee or spe- It shall be the responsibility of the Director, cial Government employee. Such notice shall Office of Administration, to carry out the proinclude advice that such employee or special visions of this section.

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SUBPART B-ETHICAL AND OTHER (5) Making a Government decision outside


(6) Affecting adversely the confidence of the

public in the integrity of the Board or the Gov1450.735-21 Gifts, entertainment, and fa

ernment. vors.-(a) Except as provided in paragraph

(d) An employee shall not solicit contribu(b) of this section, an employee shall not solicit,

tions from another employee for a gift to an or accept, directly or indirectly, any gift, gra

employee in a superior official position. An emtuity, favor, entertainment, loan, or any other thing of monetary value, from a person who:

ployee in a superior official position shall not

accept a gift presented as a contribution from (1) Has, or is seeking to obtain, contractual

employees receiving less salary than himself. or other business or financial relations with the

An employee shall not make a donation as a gift Board; (2) Conducts operations or activities that are

to an employee in a superior official position

(5 U.S.C. 113). within the scope of the Renegotiation Act of

(e) An employee shall not accept a gift, pre1951, as amended; or (3) Has interests that may be substantially

sent, decoration, or other thing from a foreign affected by the performance or nonperformance

government unless authorized by Congress as of the employee's official duty.

provided by the Constitution and in 5 U.S.C.

(b) There are excepted from the prohibitions
contained in paragraph (a) of this section:

1450.735-22 Outside employment.-(a) An (1) Transactions governed by obvious fam

employee shall not engage in, or conduct nego

tiations or arrangements for, outside employily or personal relationships (such as those between the parents, children, or spouse of the

ment or other outside activity not compatible

with the full and proper discharge of the duties employee and the employee) when the circumstances make it clear that it is those relation

and responsibilities of his employment with the ships rather than the business of the persons

Board. Incompatible activities include but are concerned which are the motivating factors;

not limited to: (2) Acceptance of food and refreshments of

(1) Acceptance of a fee, compensation, gift, nominal value on infrequent occasions in the

payment of expense, or any other thing of ordinary course of a luncheon or dinner meeting

monetary value in circumstances in which acor on an inspection tour where an employee may

ceptance may result in, or create the appearance

of, conflicts of interest; or properly be in attendance;

(3) Acceptance of loans from banks or other (2) Outside employment which tends to imfinancial institutions on customary terms to

pair his mental or physical capacity to perform finance proper and usual activities of employees,

his duties and responsibilities as an employee in such as home mortgage loans; and

an acceptable manner. (4) Acceptance of unsolicited advertising or

(b) An employee shall not receive any salary promotional material, such as pens, pencils, note

or anything of monetary value from a private pads, calendars, and other items of nominal in- source as compensation for his services to the trinsic value.

Government (18 U.S.C. 209). (c) An employee shall avoid any action, (c) Employees are encouraged to engage in whether or not specifically prohibited by this teaching, lecturing, and writing that is not prosubpart, which might result in, or create the hibited by law, the Executive order, the Civil appearance of:

Service Regulations, or this part. However, an (1) Using public office for private gain;

employee shall not, either for or without com(2) Giving preferential treatment to any per- pensation, engage in teaching, lecturing, or son;

writing that is dependent on information ob(3) Impeding Government efficiency or econ- tained as a result of his employment by the

Board, except when that information has been omy;

(4) Losing complete independence or impar- made available to the general public or will be tiality;

made available on request, or when the Board

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