Sec.

1

Creation and authority.

2 Purpose.

3 Organization.

4 Availability of information. 5 Activities.

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, 2000 M Street NW., Washington, D.C. 20446.

Eastern Regional Renegotiation Board, 2000 M Street NW., Washington, D.C. 20447.

Western Regional Renegotiation Board, 300 North Los Angeles Street, Los Angeles, Calif. 90012.

CENTRAL ORGANIZATION

The Renegotiation Board is composed of five members. Each is appointed by the President, by and with the advice and consent of the Sen

ate. The President designates one member to serve as Chairman.

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.

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, 2000 M Street NW., Washington, DC 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 matters relating to small business, to the Small Business Adviser; on other matters of a general nature, to the Secretary to the Board.

Forms and instructions for filing renegotiation 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 Superintend

ent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

The Renegotiation Board Regulations and current supplements thereto may be purchased by subscription from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The subscription includes Renegotiation Bulletins and Renegotiation Rulings.

General rules for the time, place, and manner of filing information and requests with the Board and the regional boards in particular renegotiation proceedings are set forth at appropriate places in the Renegotiation Board Regulations.

5 Activities.-The Renegotiation Act of 1951 is applicable to contracts with the following departments and agencies of the Government, and related subcontracts: The Departments of Defense, Army, Navy, and Air Force, the Maritime Administration, the General Services Administration, the Atomic Energy Commission, the National Aeronautics and Space Administration, and the Federal Aviation Agency (now the Federal Aviation Administration). Effective August 12, 1961, the Federal Maritime Board, also named in the act, was abolished and its contracting authority transferred to the Maritime Administration.

A report must be filed with the Board by every contractor whose receipts or accruals from renegotiable prime contracts and subcontracts during its fiscal year exceed the minimum amount' prescribed in the act, but a report may be filed by any other contractor having renegotiable business. All such reports are examined at the headquarters of the Board. Filings which show aggregate renegotiable sales below the statutory "floor" are reviewed to determine their acceptability. Above-thefloor filings contain detailed financial and other information. If such reports are not cleared after initial examination at the headquarters, they are assigned to the regional boards for renegotiation, usually on a geographic basis. In the course of the subsequent proceedings, additional pertinent information is obtained, when necessary, by correspondence or meetings with the contractor.

The Board has delegated to the regional boards final authority to issue letters not to

proceed, to issue clearances, or to make refund agreements in cases involving aggregate renegotiable profits of $800,000 or less (Class B cases). If in a Class B refund case the contractor declines to enter into an agreement, the regional board makes a recommendation with respect to the amount of excessive profits realized, and the case is reassigned to the Board for further processing.

In cases involving renegotiable profits of more than $800,000 (Class A cases), the regional boards do not have any final authority. Their function in such cases is limited to the making of recommendations to the Board for the issuance of letters not to proceed; recommendations for the issuance of clearances; recommendations for the making of refund agreements executed by contractors; and, in those cases in which the contractors have declined to enter into refund agreements, recommendations with respect to the amount of excessive profits realized. The cases are thereupon reassigned to the Board for further processing.

If, after further proceedings, the Board and the contractor are unable to agree upon the amount of excessive profits, if any, to be refunded by the contractor for such fiscal year, the Board issues and enters an order determining such amount. A de novo redetermination may be obtained, by petition, in the U.S. Court of Claims, whose decision is final with respect to the amount of excessive profits but is otherwise subject to review by the Supreme Court upon certiorari.

The Board maintains liaison with the various agencies whose contracts are subject to the Renegotiation Act of 1951, and with the Department of Justice, the Internal Revenue Service, and other agencies whose jurisdiction or activities relate to the functions of the Board. The Board also furnishes renegotiation information to Government procurement agencies when necessary or appropriate in furtherance of their procurement activities.

Responsibility for the collection of amounts payable under a renegotiation agreement or order is assigned to the agency whose contracts are predominantly involved in the particular

case.