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(1) list each of those contracts in which the cost to the United States will be more than $50,000; and

(2) contain specific information on each contract described in clause (1), but may omit any information if the Secretary considers that its disclosure would be detrimental to the national security. (Aug. 10, 1956, ch. 1041, § 1, 70A Stat. 135.)

CHAPTER 141.-MISCELLANEOUS PROCUREMENT

PROVISIONS Section 2381. Contracts: regulations for bids. (a) The Secretary of a military department may

(1) prescribe regulations for the preparation, submission, and opening of bids for contracts with that department; and

(2) require that a bid be accompanied by a written guaranty, signed by one or more responsible persons, undertaking that the bidder, if his bid is accepted, will, within the time prescribed by the Secretary or other officer authorized to make the contract, make a contract and furnish a bond with good and sufficient sureties for the performance of the contract.

(b) If a bidder, after being notified of the acceptance of his bid, fails within the time prescribed under subsection (a) (2) to enter into a contract and furnish the prescribed bond, the Secretary concerned or other authorized officer shall

(1) contract with another person; and

(2) charge against the defaulting bidder and his guarantors the difference between the amount specified by the bidder in his bid and the amount for which a contract is made with the other person, this difference being immediately recoverable by the United States for the use of the military department concerned in an action against the bidder and his guarantors, jointly or severally.

(c) Proceedings under this section are subject to regulations under section 486 of title 40, unless exempted therefrom under section 481 (a) of that title. (Aug. 10, 1956, ch. 1041, § 1, 70A Stat. 136.)

Section 2382. Aircraft: contract requirements.

(a) The Secretary of a military department may not contract for the manufacture of all or part of any complete aircraft, unless the contractor agrees

(1) to report under oath to the Secretary, when the contract is completed, as prescribed in subsection (b);

(2) to pay any excess profit into the Treasury;

(3) to make no division of any contract or subcontract for the same article for the purpose of evading this section;

(4) that the books and manufacturing spaces of its plant, affiliates, and divisions may at any time be audited and inspected, respectively, by any person designated by the Secretary of the military department concerned, the Secretary of the Treasury, or an authorized committee of Congress; and

(5) to make no subcontract unless the subcontractor agrees to the conditions set forth in this subsection.

(b) The report required under subsection (a) (1) shall be in the form prescribed by the Secretary of the military department concerned. It shall state the total contract price, the cost of performing the contract, the net profit or loss, and the percentage of the contract price that is net profit or loss. A copy shall be sent to the Secretary of the Treasury to be considered with the Federal income tax returns of the contractor.

(c) For the purposes of this section, "excess profit” means so much of the profits as the Secretary of the Treasury determines to be greater than 12 percent of the total contract price for contracts covered by this section and completed by a contractor or subcontractor within the taxable year. The method of computing excess profits shall be determined by the Secretary of the Treasury in agreement with the Secretary of the military department concerned. It shall be made available to the public.

(d) When an excess profit is found owing, the Secretary of the Treasury shall allow credit for any Federal income taxes paid or to be paid on the excess profit. If a contractor or subcontractor has a net loss, or a net profit of less than 12 percent, on the aggregate of contracts or subcontracts covered by this section and completed in a taxable year, the deficiency shall be allowed as a credit against any excess profit for the next succeeding four taxable years.

(e) When paid into the Treasury, an excess profit becomes the property of the United States. The surety under the contract is not liable for its payment.

(f) This section applies to any division of a contract or subcontract covered by this section. (g) This section does not apply to

(1) a contract or subcontract for scientific equipment for communications, target detection, navigation, or fire control if the Secretary of the military department concerned designates the contract or subcontract for exemption; or

(2) a contract or subcontract, or division thereof, if the amount involved is $10,000 or less. (Aug. 10, 1956, ch. 1041, § 1, 70A Stat. 136.)

Section 2383. Emergency purchases: war material abroad.

The Secretary of a military department may make emergency purchases of war material abroad. Material so purchased shall be admitted free of duty. (Aug. 10, 1956, ch. 1041, § 1, 70A Stat. 137.)

Section 2384. Supplies: marking with name of contractor.

Each contractor furnishing supplies to a military department shall mark them with his name in the manner directed by the Secretary of that department. No supplies may be received unless so marked. (Aug. 10, 1956, ch. 1041, $. 1, 70A Stat. 137; as amended, Pub.L. 85–861, $ 1(46), Sept. 2, 1958, 72 Stat. 1458.)

Section 2385. Arms and ammunition: immunity from taxation.

No tax on the sale or transfer of firearms, pistols, revolvers, shells, or cartridges may be imposed on such articles when bought with funds appropriated for a military department. (Aug. 10, 1956, ch. 1041, § 1, 70A Stat. 137.)

Section 2386. Copyrights, patents, designs, etc.; acquisition.

Funds appropriated for a military department available for making or procuring supplies may be used to acquire any of the following if the acquisition relates to supplies or processes produced or used by or for, or useful to, that department:

(1) Copyrights, patents, and applications for patents.

(2) Licenses under copyrights, patents, and applications for patents.

(3) Designs, processes, and manufacturing data.

(4) Releases, before suit is brought, for past infringement of patents or coyprights. (Aug. 10, 1956, ch. 1041, § 1, 70A Stat. 137; as amended, Sept. 8, 1960, $ 3, 74 Stat. 855.)

CHAPTER 147.-UTILITIES AND SERVICES Section 2481. Utilities and services: sale; expansion and exten

sion of systems and facilities. (a) Under such regulations and for such periods and at such prices as he may prescribe, the Secretary concerned or his designee may sell or contract to sell to purchasers within or in the immediate vicinity of an activity of the Army, Navy, Air Force, or Marine Corps, or Coast Guard, as the case may be, any of the following utilities and related services, if it is determined that they are not available from another local source and that the sale is in the interest of national defense or in the public interest:

(1) Electric power.
(2) Steam.
(3) Compressed air.

(4) Water.
(5) Sewage and garbage disposal.
(6) Natural, manufactured, or mixed gas.
(7) Ice.
(8) Mechanical refrigeration.

(9) Telephone service. (b) Proceeds of sales under subsection (a) shall be credited to the appropriation currently available for the supply of that utility or service.

(c) To meet local needs the Secretary concerned may make minor expansions and extensions of any distributing system or facility within an activity through which a utility or service is furnished under subsection (a). (Aug. 10, 1956, ch. 1041, § 1, 70A Stat. 141; as amended Aug. 14, 1959, Pub. L. 86–156, § 1, 73 Stat. 338.)

Section 2482. Commissary stores: private operation.

Private persons may operate commissary stores under such regulations as the Secretary of Defense may approve. (Aug. 10, 1956, ch. 1041, § 1, 70A Stat. 141.)

CHAPTER 151.-ISSUE OF SERVICEABLE MATERIAL

OTHER THAN TO ARMED FORCES

Section 2541. Equipment and barracks: national veterans' or

ganizations. (a) The Secretary of a military department, under conditions prescribed by him, may lend cots, blankets, pillows, mattresses, bed sacks, and other supplies under the jurisdiction of that department to any recognized national veterans' organization for use at its national or state convention or national youth athletic or recreation tournament. He may, under conditions prescribed by him, also permit the organization to use unoccupied barracks under the jurisdiction of that department for such an occasion.

(b) Property lent under subsection (a) may be delivered on terms and at times agreed upon by the Secretary of the military department concerned and representatives of the veterans' organization. However, the veterans' organization must defray any expense incurred by the United States in the delivery, return, rehabilitation, or replacement of that property, as determined by the Secretary.

(c) The Secretary of the military department concerned shall require a good and sufficient bond for the return in good condition of property lent or used under subsection (a). (Aug. 10, 1956, ch. 1041, § 1, 70A Stat. 142.)

Section 2542. Equipment for instruction and practice: American

National Red Cross. The Secretary of a military department, under regulations to be prescribed by him, may lend equipment under the jurisdiction of that department that is on hand, and that can be temporarily spared, to any organization formed by the American National Red Cross that needs it for instruction and practice for the purpose of aiding the Army, Navy, or Air Force in time of war. The Secretary shall by regulation require the immediate return, upon request, of equipment lent under this section. The Secretary shall require a bond, in double the value of the property issued under this section, for the care and safekeeping of that property and for its return when required. (Aug. 10, 1956, ch. 1041, § 1, 70A Stat. 142.)

CHAPTER 153.-EXCHANGE OF MATERIAL AND DISPOSAL OF OBSOLETE, SURPLUS, OR UNCLAIMED

PROPERTY

Section 2571. Interchange of property and services.

(a) If either of the Secretaries concerned requests it and the other approves, supplies and real estate may be transferred, without compensation, from one armed force to another.

(b) If its head approves, a department or organization within the Department of Defense may, upon request, perform work and services for, or furnish supplies to, any other of those departments or organizations, without reimbursement or transfer of funds.

(c) If military or civilian personnel of a department or organization within the Department of Defense are assigned or detailed to another of those departments or organizations, and if the head of the department or organization to which they are transferred approves, their pay and allowances and the cost of transporting their dependents and household goods may be charged to an appropriation that is otherwise available for those purposes to that department or organization. (Aug. 10, 1956, c. 1041, § 1, 70A Stat. 143, amended Sept. 2, 1958, Pub. L. 85–861, $ 1(49), 72 Stat. 1459.)

Section 2572. Condemned or obsolete material: loan or gift to

certain organizations. Subject to regulations under section 486 of title 40, the Secretary of a military department, or the Secretary of the Treasury, under regulations to be prescribed by him, may lend or give, without expense to the United States, books, manuscripts, works

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