Delegation by the Renegotiation Board to Regional Boards

Renegotiation Act of 1951 as amended through

June 30, 1966

[Public Law 9, 82d Cong., approved March 23, 1951, as amended by
Public Law 764, 83d Cong., approved September 1, 1954; Public
Law 216, 84th Cong., approved August 3, 1955; Public Law 870,
84th Cong., approved August 1, 1956; Public Law 85-930, 85th
Cong., approved September 6, 1958; Public Law 86–89, 86th Cong.,
approved July 13, 1959; Public Law 87-520, 87th Cong., approved
July 3, 1962; Public Law 88-339, 88th Cong., approved June 30,
1964; and Public Law 89-480, 89th Cong., approved June 30, 1966]

To provide for the renegotiation of contracts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Renegotiation Act of 1951".

TITLE I-RENEGOTIATION OF CONTRACTS

SEC. 101. DECLARATION OF POLICY.

It is hereby recognized and declared that the Congress has made available for the execution of the national defense program extensive funds, by appropriation and otherwise, for the procurement of property, processes, and services, and the construction of facilities necessary for the national defense; that sound execution of the national defense program requires the elimination of excessive profits from contracts made with the United States, and from related subcontracts, in the course of said program; and that the considered policy of the Congress, in the interests of the national defense and the general welfare of the Nation requires that such excessive profits be eliminated as provided in this title.

SEC. 102. CONTRACTS SUBJECT TO RENEGOTIATION.

(a) IN GENERAL.-The provisions of this title shall be applicable (1) to all contracts with the Departments specifically named in section 103(a), and related subcontracts, to the extent of the amounts received or accrued by a contractor or subcontractor on or after the first day of January 1951, whether such contracts or subcontracts were made on, before, or after such first day, and (2) to all contracts with the Departments designated by the President under section 103 (a), and related subcontracts, to the extent of the amounts received or accrued by a contractor or subcontractor on or after the first day of the first month beginning after the date of such designation, whether such contracts or subcontracts were made on, before, or after such first day.1 (b) PERFORMANCE PRIOR TO JULY 1, 1950.-Notwithstanding the provisions of subsection (a), the provisions of this title shall not apply to contracts with the Departments, or related subcontracts, to the extent of the amounts received or accrued by a contractor or subcontractor on or after the 1st day of January 1951, which are attributable to performance, under such contracts or subcontracts, prior to

1 Pub. Law 870, 84th Cong., approved August 1, 1956, struck out at this point "; but provisions of this title shall not be applicable to receipts or accruals attributable to performance, under contracts, or subcontracts, after December 31, 1956". The last date was changed from "1953" to "1954" by Pub. Law 764, 83d Cong., approved September 1, 1954, and changed to "1956" by Pub. Law 216, 84th Cong., approved August 3, 1955.

X

July 1, 1950. This subsection shall have no application in the case
of contracts, or related subcontracts, which, but for subsection (c),
would be subject to the Renegotiation Act of 1948.

(c) TERMINATION.~~~

(1) In general.-The provisions of this title shall apply only
with respect to receipts and accruals, under contracts with the De-
partments and related subcontracts, which are determined under
regulations prescribed by the Board to be reasonably attributable
to performance prior to the close of the termination date. Not-
withstanding the method of accounting employed by the contrac-
tor or subcontractor in keeping his records, receipts or accruals de-
termined to be so attributable, even if received or accrued after the
termination date, shall be considered as having been received or
accrued not later than the termination date. For the purposes of
this title, the term "termination date" means June 30, 1968.

(2) Termination of status as department. When the status
of any agency of the Government as a Department within the
meaning of section 103(a) is terminated, the provisions of this
title shall apply only with respect to receipts and accruals, under
contracts with such agency and related subcontracts, which are
determined under regulations prescribed by the Board to be rea-
sonably attributable to performance prior to the close of the status
termination date. Notwithstanding the method of accounting
employed by the contractor or subcontractor in keeping his rec-
ords, receipts or accruals determined to be so attributable, even if
received or accrued after the status termination date, shall be
considered as having been received or accrued not later than the
status termination date. For the purposes of this paragraph, the
term "status termination date" means, with respect to any agency,
the date on which the status of such agency as a Department with-
in the meaning of section 103(a) is terminated.2

(d) RENEGOTIATION ACT OF 1948.-The Renegotiation Act of 1948
shall not be applicable to any contract or subcontract to the extent
of the amounts received or accrued by a contractor or subcontractor
on or after the 1st day of January 1951, whether such contract or
subcontract was made on, before, or after such first day. In the case
of a fiscal year beginning in 1950 and ending in 1951, if a contractor
or subcontractor has receipts or accruals prior to January 1, 1951, from
contracts or subcontracts subject to the Renegotiation Act of 1948,
and also has receipts or accruals after December 31, 1950, to which
the provisions of this title are applicable, the provisions of this title
shall, notwithstanding subsection (a), apply to such receipts and
accruals prior to January 1, 1951, if the Board and such contractor
or subcontractor agree to such application of this title; and in the case
of such an agreement the provisions of the Renegotiation Act of 1948
shall not apply to any of the receipts or accruals for such fiscal year.
(e) SUSPENSION OF CERTAIN PROFIT LIMITATIONS.-Notwithstand-
ing any agreement to the contrary, the profit-limitation provisions
of the Act of March 27, 1934 (48 Stat. 503, 505), as amended and
supplemented, and of section 505 (b) of the Merchant Marine Act,
1936, as amended and supplemented (46 U.S.C. 1155 (b)), shall not
apply, in the case of such Act of March 27, 1934, to any contract or
subcontract if any of the receipts or accruals therefrom are subject to
this title or would be subject to this title except for the provisions of
section 106 (e), and, in the case of the Merchant Marine Act, 1936, to

Subsection (c) of section 102 was added by Pub, Law 870, 84th Cong., approved August
1, 1956, which also relettered former subsections (c) and (d) as (d) and (e), respectively.
The "termination date" in paragraph (1) of such subsection (c) was changed by Pub. Law
85-930, 85th Cong., approved September 6, 1958, from December 31, 1958, to June 30, 1959.
By Pub. Law 86-89, 86th Cong., approved July 13, 1959, "June 30, 1959" was changed to
"June 30, 1962." By Pub. Law 87-520, 87th Cong., approved July 3, 1962, "June 30,
1962," was changed to "June 30, 1964." By Pub. Law 88-339, 88th Cong., approved
June 30, 1964, "June 30, 1964" was changed to "June 30, 1966." By Pub. Law 89-480,
89th Cong., approved June 30, 1966, "June 30, 1966" was changed to "June 30, 1968."

any contract or subcontract entered into after December 31, 1950, if any of the receipts or accruals therefrom are subject to this title or would be subject to this title except for the provisions of section 106(e).3

SEC. 103. DEFINITIONS.

For the purposes of this title

(a) DEPARTMENT.-The term "Department" means the Department of Defense, the Department of the Army, the Department of the Navy, the Department of the Air Force, the Maritime Administration, the Federal Maritime Board, the General Services Administration, the National Aeronautics and Space Administration, the Federal Aviation Agency and the Atomic Energy Commission. Such term also includes any other agency of the Government exercising functions having a direct and immediate connection with the national defense which is designated by the President during a national emergency proclaimed by the President, or declared by the Congress, after the date of the enactment of the Renegotiation Amendments Act of 1956; but such designation shall cease to be in effect on the last day of the month during which such national emergency is terminated.

(b) SECRETARY.-The term "Secretary" means the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, the Secretary of the Air Force, the Secretary of Commerce (with respect to the Maritime Administration), the Federal Maritime Board, the Administrator of General Services, the Administrator of the National Aeronautics and Space Administration, the Administrator of the Federal Aviation Agency, the Atomic Energy Commission, and the head of any other agency of the Government which the President shall designate as a Department pursuant to subsection (a) of this section." (c) BOARD.-The term "Board" means the Renegotiation Board created by section 107 (a) of this Act.

(d) RENEGOTIATE AND RENEGOTIATION.-The terms "renegotiate" and "renegotiation" include a determination by agreement or order under this title of the amount of any excessive profits.

(e) EXCESSIVE PROFITS.-The term "excessive profits" means the portion of the profits derived from contracts with the Departments and subcontracts which is determined in accordance with this title to be excessive. In determining excessive profits favorable recognition must be given to the efficiency of the contractor or subcontractor, with particular regard to attainment of quantity and quality production, re

3 Matter in italics in section 102 (e) was added by Pub. Law 216, 84th Cong. approved August 3, 1955, as amended by Pub. Law 870, 84th Cong., approved August 1, 1956, and applies only to the extent of amounts received or accrued after December 31, 1953. Pub. Law 870 changed "section 106 (a) (8)" to "section 106 (e)" with respect to fiscal years ending after June 30, 1956.

4 Section 103 (a) was amended by Pub. Law 870, 84th Cong., approved August 1, 1956, which struck out, effective December 31, 1956, the Department of Commerce, the Reconstruction Finance Corporation, the Canal Zone Government, the Panama Canal Company, the Housing and Home Finance Agency, and such other agencies of the Government as were designated by the President under the former subsection (a). Federal Civil Defense Administration, National Advisory Committee for Aeronautics, Tennessee Valley Authority, and U.S. Coast Guard were designated by Executive Order 10260, dated June 27, 1951; Defense Materials Procurement Agency, Bureau of Mines, and (United States) Geological Survey by Executive Order 10294, September 28, 1951; Bonneville Power Administration by Executive Order 10299, October 31, 1951; Bureau of Reclamation by Executive Order 10369, June 30, 1952; and Federal Facilities Corporation by Executive Order 10567, September 29, 1954. Section 103(a) was further amended by Pub. Law 85-930, 85th Cong., approved September 6, 1958, which added the National Aeronautics and Space Administration and which made section 103(a) applicable to contracts entered into by such Administration and to contracts transferred to such Administration from a Department under section 301 or 302 of the National Aeronautics and Space Act of 1958, and to related subcontracts; and by Pub. Law 88-339, 88th Cong., approved June 30, 1964, which added the Federal Aviation Agency and which made section 103 (a) applicable to contracts with such Agency, and related subcontracts, to the extent of the amounts received or accrued by a contractor or subcontractor after June 30, 1964.

Matter in italics in section 103(b), except the references to the Administrator of the National Aeronautics and Space Administration and the Administration of the Federal Aviation Agency, was added by Pub, Law 870, 84th Cong., approved August 1, 1956, which also changed "the Chairman of the Atomic Energy Commission" to "the Atomic Energy Commission" and struck out the Board of Directors of the Reconstruction Finance Corporation, the Governor of the Canal Zone, the President of the Panama Canal Company, and the Housing and Home Finance Administrator, all effective on December 31, 1956. The Administrator of the National Aeronautics and Space Administration was added by Pub. Law 85-930, 85th Cong., approved September 6, 1958. The Administrator of the Federal Aviation Agency was added by Pub. Law 88-339, 88th Cong., approved June 30, 1964.