1499.1 The Renegotiation Act of 1951, as amended. Renegotiation Act of 1951 as amended through [Public Law 9, 82d Cong., approved March 23, 1951, as amended by To provide for the renegotiation of contracts, and for other purposes. 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 of 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 of subcontractor on or after the 1st day of January 1951, which are attributable to performance, under such contracts or subcontracts, prior to 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. 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 attributabe 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. 1452.6 Patent licenses.- * -- (c) Royalty Adjustment Act agreements or orders. If the rates or amounts of the royalties received or accrued for the period involved in the renegotiation have been fixed as fair and just in a Royalty Adjustment Act order or agreement applicable to such period or any part thereof, the Board will ordinarily find that no excessive profits have been derived from that part of the royalties covered by such order or agreement. Rates or amounts of royalties fixed as fair and just in a Royalty Adjustment Act order or agreement will not be controlling with respect to the reasonableness of any royalties not covered by such order or agree reau of Census, Weather Bureau, Coast and (d) Common carriers by water—(1) Fiscal years ending before December 31, 1953.-With respect to fiscal years ending before December 31, 1953, a contract with a common carrier for transportation by water is exempt only if the sale or furnishing of such transportation is subject to the jurisdiction of the Interstate Commerce Commission under Part III of the Interstate Commerce Act or subject to the jurisdiction of the Federal Maritime Board, under the Intercoastal Shipping Act, 1933. Rates for passenger or cargo transportation to foreign ports are not fixed by these agencies under the statutes referred to in the last sentence of section 106 (a) (4) of the act, and thus contracts for such transportation are not within the exemption. 1453.5 Contracts that do not have a direct and immediate connection with the national defense. (b) Exemptions.-Subject to the limitation provided in paragraph (c) of this section, the Board has determined that the following classes and types of prime contracts do not have a direct and immediate connection with the national defense: * (7) Department of Commerce.-All contracts of the Office of Technical Services, Bu 3-1-67 (9) Construction Contracts.--All construction contracts entered into before July 1, 1950, except those entered into by the Department of Defense, Department of the Army, Department of the Navy, Department of the Air Force, United States Coast Guard, and Atomic Energy Commission. (10) Canal Zone Government and Panama Canal Company.-All construction contracts for housing entered into before July 1, 1950, by the Canal Zone Government and the Panama Canal Company. (11) Housing and Home Finance Agency.All contracts of the Housing and Home Finance Agency, except construction contracts entered into after June 30, 1950. (12) Corps of Engineers.-All contracts to the extent that they obligate funds appropriated for the civil functions of the Corps of Engineers, Department of the Army, and were entered into on or before June 30, 1950;**** (13) Bonneville Power Administration.All contracts of the Bonneville Power Administration entered into before July 1, 1950. (14) Tennessee Valley Authority.-All contracts of the Tennessee Valley Authority for administrative equipment, supplies, or services; and all other contracts of said Authority except contracts entered into after June 30, 1950, for (i) construction (including design and engineering services) or operation of hydro or steam electric generating projects; electric power substations, switchyards, transmission lines, and appurtenant facilities; and chemical production projects; and (ii) materials and equipment (including construction equipment) to be incorpo rated or consumed directly in the construction, (15) (United States) Geological Survey.- (16) Bureau of Reclamation.-All contracts to the extent that they obligate funds of the Bureau of Reclamation, and were entered into on or before June 30, 1950; all contracts to the extent that they obligate funds of the Bureau of Reclamation, and were entered into after June 30, 1950, and (i) obligated funds appropriated or allotted for purposes other than for one of the projects, or units of the Missouri River Basin project, on List A set forth below, or (ii) in the case of any project or unit on List A, were for work or materials required for the construction or operation of irrigation works located elsewhere than on the site of the main power facilitiy, as determined by the Bureau of Reclamation; and all contracts to the extent that they obligate funds of the Bureau of Reclamation appropriated or allotted for one of the projects or units on List A marked with an asterisk, and were entered into after December 31, 1954. The Board has determined that contracts related to the following projects and units on List A are directly and immediately connected with defense, and therefore cannot be exempted, except to the extent indicated above, for the reason that such projects and units have as part of their purposes the increase of power facilities for defense. New projects having as part of their purpose the increase of power facilities for defense may be added to the list if authorized and approved. (d) Interpretation of Exemptions.-As used in this section, the term "construction" includes only construction of buildings, structures and other improvements to or on real estate. Amendments entered into after June 30, 1950, to contracts which are exempt under this section because they were entered into before July 1, 1950, are not exempt under this section if they are for new or additional procurement. Part 1454 SUBPART A-FISCAL YEARS ENDING BEFORE JUNE 30, 1953 Sec. 1454.1 Statutory provision. 1454.2 Application of act to subcontracts for new 1454.3 1454.4 What constitutes subcontract for new durable productive equipment. 1454.5 Components of new durable productive equipment. 1454.6 Equipment purchased for account of Government. 1454.7 1454.8 Pool orders or similar commitments. Subcontracts related to subcontracts for new durable productive equipment. AUTHORITY: Sections 1454.1 to 1454.8 issued under section 109, Pub. Law 9, 82d Cong. Interpret or apply section 106, Pub. Law 9, 82d Cong. 1454.1 Statutory provision.-With respect to fiscal years ending before June 30, 1953, section 106 (c) of the act provides as follows: (1) In general.-The provisions of this title shall not apply to receipts or accruals (other than rents) from subcontracts for new durable productive equipment, except to that part of such receipts or accruals which bears the same ratio to the total of such receipts or accruals as five years bears to the average useful life of such equipment as set forth in Bulletin F of the Bu 3-1-67 (c) TERMINATION.— (1) IN GENERAL.-The provisions of this title shall apply only with respect to receipts and accruals, under contracts with the Departments 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. Notwithstanding the method of accounting employed by the contractor or subcontractor in keeping his records, receipts or accruals determined 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 reasonably 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 records, 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 within 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.-Notwithstanding 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 any contract or subcontract entered into after December 31, 1950, if any of the receipts or accruals therefrom are subject to this title or 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." |