List A-Continued Project Center Hill, Tenn... Cheatham, Tenn----Chief Joseph, Wash.. Clark Hill, Ga. and S.C___ Cordell Hull, Tenn_-_ Cougar, Oreg....... Dale Hollow, Tenn. Dardanelle, Ark. DeGray, Ark......... Denison, Tex. and Okla.... Detroit, Oreg- Eufaula, Okla.. Folsom, Calif. Fort Gibson, Okla... Fort Peck, Mont---. Fort Randall, S. Dak_- Garrison, N. Dak............... Green Peter, Oreg~-~~ Greers Ferry, Ark.......... River basin Cumberland. Columbia. Caddo. Red. Willamette. Arkansas. Sacramento. Arkansas. Missouri. Missouri. Missouri. Gavins Point, Nebr. and S. Dak......... Missouri. Hartwell, Ga. and S.C.......... Hills Creek, Oreg---- Middle Santiam. White. Savannah. Willamette. Snake. Stones. Chattahoochee. Little Goose, Wash.. Lookout Point, Oreg- Lower Granite, Wash.__ Snake. Lower Monumental, Wash....... Snake. McGee Bend, Tex.. Angelina. Columbia. Alabama. Ouachita. McNary, Oreg. and Wash__ Millers Ferry, Ala.. White. Missouri. Cumberland. Arkansas. Roanoke. Arkansas. St. Mary. Sac. White. Arkansas. Columbia. Walter F. George, Ala. and Ga. Chattahoochee. Webbers Falls, Okla... West Point, Ga.. Whitney, Tex... Wolf Creek, Ky. Arkansas. Brazos. (13) Bonneville Power Administration.Removed to Appendix. (14) Tennessee Valley Authority.-Removed to Appendix. (15) (United States) Geological Survey.Removed to Appendix. (16) Bureau of Reclamation.-Removed to Appendix. (17) Military exchanges and similar orga nizations.-Contracts for the purchase of materials by military exchanges, ships' service stores, slop chests, post restaurants, officers' or noncommissioned officers' clubs, benefits or welfare funds and similar organizations using nonappropriated funds. (18) All contracts for maintenance dredging. (c) Limitation on exemptions.-No contract of any class or type set forth in paragraph (b) of this section is exempt under section 106 (a) (6) of the act if the Department making the contract has determined that the contract has a direct and immediate connection with the national defense and such determination is set forth in the contract or any amendment or supplement thereto, except that, in the case of contracts made before the effective date of this regulation, it shall be sufficient if written notice of such determination is otherwise given to the contractor by such Department. Any determination to be made pursuant to the provisions of this paragraph shall be made by the head of such Department or by a person responsible directly to him and specifically authorized by him to make such determinations. (d) Interpretation of exemptions.-Removed to Appendix. (e) Procedure for exemption of contracts relating to floods, fires, and other natural disasters. Upon the occurrence of a major flood, conflagration, earthquake, epidemic, or other natural disaster, the Board will entertain requests from authorized procurement officers of any Department, and in appropriate cases will determine that any contracts let by such procurement officers for emergency procurement of relief supplies, for emergency repairs, or for other related purposes are not subject to renegotiation under the act. The request shall be transmitted through regular channels in the Department involved unless the emergency necessitates an immediate telegraphic answer, in which case it may be addressed directly to the Board. (f) Procedure for exemption of individual contracts. Any individual prime contractor who believes that its prime contract is not directly and immediately connected with the national defense may submit its recommenda 1455.4 Contracts when contractual provisions adequate to prevent excessive profits. (a) Statutory authority.-Section 106 (d) (3) of the act authorizes the Board in its discretion to exempt from some or all of the provisions of the act the following: (3) any contract or subcontract or performance thereunder during a specified period or periods if, in the opinion of the Board, the provisions of the contract are otherwise adequate to prevent excessive profits; (b) Exemptions.-Pursuant to the foregoing authority, the Board has exempted from renegotiation the following: (1) Maritime Administration.-All operating differential subsidy contracts of the Maritime Administration which are let under authority of 46 U.S.C. 1171, 1173, as amended, whenever such contracts contain or incorporate by reference or are subject to the redetermination and recapture provisions of 46 U.S.C. 1176. This exemption applies only to receipts and accruals derived from the United States in the form of subsidy payments. It does not exempt renegotiable receipts or accruals otherwise derived, including payments by shippers for freight charges. (2) Defense Minerals Exploration Administration.-Removed to Appendix. (3) Small Defense Plants Administration.Removed to Appendix. (4) Small Business Administration.-All prime contracts entered into by the Small Business Administration under the authority of section 207 (c) of the Small Business Act of 1953, Public Law 163, 83d Congress, First Session, with any of the Departments named in or designated pursuant to section 103 of the act. This exemption shall not extend to subcontracts related to such prime contracts. information which would support the conclusion that the provisions of the prime contract or subcontract are otherwise adequate to prevent excessive profits. Accordingly, prime contractors or subcontractors who believe that their prime contracts or subcontracts should be exempted under this provision should address requests to the agencies entering into the prime contracts involved. (c) Exemption of individual prime contracts and subcontracts.-The Board will exempt an individual prime contract or subcontract, or performance thereunder during a specified period or periods if, in the opinion of the Board, the provisions of the contract are otherwise adequate to prevent excessive profits. The Board will make such an exemption only after it has received from the agency entering into the prime contract sought to be exempted, or the prime contract to which the subcontract sought to be exempted relates, a request for the exemption of such prime contract or subcontract and 1455.5 Contracts and subcontracts of a secret nature.-(a) Statutory authority.Section 106(d) (4) of the act authorizes the Board in its discretion to exempt from some or all of the provisions of Title I of the act the following: (4) any contract or subcontract the renegotiation of which would jeopardize secrecy required in the public interest; (b) Exemption of individual prime contracts and subcontracts.-The Board will exempt any prime contract or subcontract the renegotiation of which would jeopardize secrecy required in the public interest. Requests for exemption of individual contracts under this section will be entertained only if made by the agency entering into the prime contract sought to be exempted or the prime contract to which the subcontract sought to be exempted relates. - 1455.6 Subcontracts as to which it is not administratively feasible to segregate profits. (a) Statutory authority.-Section 106 (d) (5) of the act authorizes the Board in its discretion to exempt from some or all of the provisions of Title I of the act the following: (5) any subcontract or group of subcontracts not otherwise exempt from the provisions of this section, if, in the opinion of the Board, it is not administratively feasible in the case of such subcontract or in the case of such group of subcontracts to determine and segregate the profits attributable to such subcontract or group of subcontracts from the profits attribuable to activities not subject to renegotiation. utable to activities not subject to renegotiation. (b) "Stock item" exemption; amounts received or accrued before July 1, 1967.-The Board has found that it is not administratively, feasible to determine and segregate the profits attributable to activities subject to renegotiation from those not so subject in the case of the following and has, therefore, exempted from the provisions of the act, to the extent of amounts received or accrued prior to July 1, 1967, all subcontracts subject to the act which are for materials (including maintenance, repair and operating supplies) customarily purchased for stock in the normal course of the purchaser's business, except when such materials are specially purchased for use in performing one or more prime contracts or higher tier subcontracts subject to the act. (c) Application of exemption.-(1) When the purchaser customarily carries an article in stock and purchases a supply of it to be placed in stock, the purchase is not subject to renegotiation merely because the purchaser knows that some portion of the stock thus replenished will inevitably be used in the performance of renegotiable contracts or subcontracts then on hand, but when materials have been specially purchased for use in performing one or more renegotiable contracts or subcontracts, the subcontract for such a purchase is subject to renegotiation, notwithstanding that the article may be customarily carried in stock by the purchaser, and irrespective of the amount customarily carried. When items are specially purchased for use in performing one or more renegotiable contracts or subcontracts, it is immaterial that the purchaser does not know at the time of purchase the specific contract or subcontract in the performance of which such articles or any portion of them will be used, or even that the contract or subcontract has not yet been let; the purchase is subject to renegotiation in its entirety. (2) Any one or more of the following circumstances normally would indicate that the article was "specially purchased" and not exempt: (i) That the specifications of the article were adapted to the purchaser's renegotiable business only. (ii) That the article was segregated or earmarked, either in whole or in part, for the per formance of renegotiable contracts or subcontracts. (iii) That the purchaser represented to the supplier that the article was required for the performance of military or other renegotiable contracts or subcontracts, or extended to the supplier a preference rating or allotment symbol applicable only to such contracts or subcontracts. (iv) That the amount of the purchase coincided substantially with the purchaser's requirements for performance of his renegotiable contracts or subcontracts, or those he expected to obtain and was abnormal to his usual requirements. (v) That all or substantially all of the purchaser's business in the plant or other facility to which the article was delivered was subject to renegotiation. 1455.7 Subcontracts related to exempt prime contracts and subcontracts.-The Board has exempted all subcontracts related to the prime contracts and subcontracts exempted pursuant to the authority of section 106(d) of the act, except (a) subcontracts related to prime contracts and subcontracts exempted in section 1455.2 and (b) other subcontracts, when the Board, in exempting prime contracts or subcontracts, determines that the exemption will not extend to some or all of the subcontracts related to such prime contracts or subcontracts. 1455.8 Renegotiation clause in exempt contracts.-The renegotiation clause provided for by section 104 of the act shall not be inserted in prime contracts and subcontracts exempted in this part, except that there shall be inserted in prime contracts and subcontracts exempted in section 1455.2 a provision requiring the prime contractor or subcontractor, as the case may be, to insert a renegotiation clause in each subcontract into which it enters and which is not exempt from the provisions of the act. amount greater than the amount by which such aggregate exceeds $25,000. Notwithstanding the preceding sentence, subcontracts described in section 103(g) (3) (A) and (B) of the act for architectural, design or engineering services, no part of which services is or was related to the effecting or procuring of a contract with a Department or a subcontract, will be treated, for the purposes of this section and §§ 1458.4 and 1458.5, as if such subcontracts were subcontracts described in section 103(g) (1) of the act. (c) In the application of the "floor" provisions set forth in paragraphs (a) and (b) of this section, if any related contractor has been renegotiated prior to the renegotiation of the contractor, the receipts or accruals of such related contractor, received or accrued during the fiscal year of such contractor, shall be adjusted. In the absence of evidence to the contrary, a determination of excessive profits to be eliminated shall, for the purposes of this paragraph, be deemed to adjust receipts or accruals in each month ratably, according to the ratio of such monthly receipts or accruals to the aggregate receipts or accruals for the fiscal year of such related contractor. There shall not be included in the aggregate amount of receipts or accruals of such related contractor any amount received or accrued by any such related contractor in any part of the fiscal year of the contractor during which the relationship between the contractor and such related contractor did not exist. For the purposes of this paragraph, when related contractors having different fiscal years are renegotiated concurrently (see § 1464.10 of this subchapter), renegotiation will be deemed to have been concluded, in the absence of unusual circumstances, in the order in which the fiscal years of such contractors ended or, if such fiscal years ended on the same date, then in the order in which such fiscal years began. (2) of the act and this section shall then be applied in determining the amount of excessive profits to be eliminated. 1458.4 Proration of statutory minimum.For the purpose of making the computation described in section 1458.2: (a) In the case of a fiscal year which is a fractional part of twelve months, the $250,000, $500,000 and $1,000,000 amounts specified in section 105 (f) (1) of the act and the $25,000 amount specified in section 105 (f) (2) thereof will be reduced to the same fractional part thereof. (d) In any case in which an adjustment for taxes (other than Federal taxes) measured by income is required (see section 1459.9 of this subchapter), excessive profits shall first be determined and the appropriate adjustment for such taxes measured by income shall be made, without regard to any limitations imposed by section 105 (f) (1) or (2) of the act and this section. The limitations of section 105 (f) (1) or (b) Removed to Appendix. (c) Removed to Appendix. (d) In the case of a fiscal year beginning on or before the termination date and ending after the termination date (see § 1466.2 of this subchapter), the $1,000,000 amount and the $25,000 amount will be reduced to an amount which bears the same ratio to $1,000,000 or $25,000, as the case may be, as the number of days in such fiscal year before the close of the termination date bears to 365. 1458.5 Statutory minimum not an exemption. (a) The minimum amounts specified in section 105 (f) (1) and (2) of the act are not exemptions. Such provisions are not to be construed to mean that receipts or accruals in the amount of $250,000, $500,000, $1,000,000 or $25,000, as the case may be, are wholly excluded from consideration when the aggregate receipts or accruals of the contractor exceed such amounts for its fiscal year. When the aggregate receipts or accruals of the contractor do not exceed $250,000, $500,0000, $1,000,000 or $25,000, as the case may be, section 105 (f) of the act provides that the contractor shall not be renegotiated for such year; but when the applicable minimum amount is exceeded and the contractor is renegotiated for its fiscal year, it is renegotiated on the basis of all of its renegotiable receipts or accruals for such year, including such $250,000, $500,000, $1,000,000 or $25,000, as the case may be. (b) Subcontracts are not exempted merely because the receipts or accruals of the prime contractor or any higher tier subcontractor do not exceed $250,000 or $25,000, as the case may be. 1458.6 Tests of "control."-For the pur poses of section 105 (f) of the act, in determining whether the contractor controls or is controlled by or under common control with another person, the following principles will be followed: (a) Corporate control.-A parent corporation which owns more than 50 percent of the voting stock of another corporation controls such other corporation and also controls all corporations controlled by such other corporation. (b) Individual control.-An individual who owns more than 50 percent of the voting stock of a corporation controls the corporation and |