§ 1422.222-5 Availability of forms.

Copies of the forms above mentioned may be obtained from The Renegotiation Board, Washington 25, D. C.

[13 F. R. 8644, Dec. 29, 1948, as amended at 17 F. R. 1384, Feb. 13, 1952]

§ 1422.222-6 Effect of filing mandatory

statements.

The filing of a mandatory statement in accordance with the provisions of §§ 1422.222 to 1422.222-7 will not relieve any contractor or subcontractor of the duty to furnish such other information, records or data which are determined by the renegotiating agency to be necessary to carry out its responsibilities under the act.

§ 1422.222-7 Filing of mandatory statements on a consolidated basis.

Parent and subsidiary corporations which constitute an "affiliated group" as defined in subsection (d) of section 141 of the Internal Revenue Code may satisfy the requirements for filing of mandatory statements under the Renegotiation Act of 1948 by filing a "Standard Form of Contractor's Report" on a consolidated basis. When such a consolidated "Standard Form of Contractor's Report" is filed there shall also be filed a "Standard Form of Contractor's Report" for each subsidiary corporation (except as noted below) but any such subsidiary corporation report may be completed by writing thereon a statement that a consolidated report has been filed by the parent company. Where any such subsidiary corporation has not received or accrued during the applicable period any amount whatever under subject contracts and subcontracts no separate report need be filed by it. The filing of a consolidated "Standard Form of Contractor's Report" does not necessarily commit the members of the group to renegotiation on a consolidated basis nor does the acceptance of such a filing commit the Government to this course. Commonly owned enterprises not constituting an "affiliated group" and, therefore, not entitled to file a consolidated "Standard Form of Contractor's Report" may nevertheless be renegotiated upon a consolidated basis if mutually agreeable (see § 1423.309 of this subchapter).

§ 1422.223 Letter of preliminary inquiry.

§ 1422.223-1 Unassigned contractors.

The Board may send to contractors and subcontractors the "Letter of Preliminary Inquiry" (set forth in § 1427.701 of this subchapter) for the purpose of determining whether the contractor should be assigned for renegotiation and to what Division such assignment, if any, should be made.

§ 1422.223-2 Assigned contractors.

The Renegotiation Division may send to contractors who have been assigned to them for renegotiation the "Letter of (set Preliminary Inquiry" forth in

of

§ 1427.701 of this subchapter) and the appropriate "Standard Form of Contractor's Report." In such cases, the filing of the "Standard Form of Contractor's Report" will constitute compliance with the requirements mandatory filing under §§ 1422.222 to 1422.222-7 if filed within the time prescribed, and, with respect to assigned cases, will enable a determination to be made as to whether further renegotiation proceedings will be necessary. If it is decided that no further action is necessary the contractor will be so advised. § 1422.224 Contractor's information and work sheet for renegotiation. The Board may send to a contractor or subcontractor a form designed to assist him in preparing information when it is contemplated that formal renegotiation proceedings will be carried to conclusion (see § 1422.242). The form prepared for the use of supply contractors is the "Contractor's Information and Work Sheet for Renegotiation" (see § 1427.704 of this

contractor's receipts and accruals during a fiscal year are in excess of the statutory minimum. (See § 1423.347 of this subchapter.) However, no assignment will be made when the Board can readily decide on the basis of the information contained in the Standard Form of Contractor's Report that the contractor has not realized excessive profits for the fiscal year and that no purpose would be served by making an assignment to a Regional Board. If the Board decides not to make an assignment, the Board will notify the contractor to this effect and will not take any further action with respect to the fiscal year, in the absence of a subsequent indication that there is a possibility that the contractor has realized excessive profits for such fiscal year.

§ 1422.232 How assignment is made. § 1422.232-1 Assignment to a Regional Board.

An assignment may be made to a Regional Board on some basis other than geographical in an appropriate case when it is believed that such assignment will promote efficiency in the renegotiation procedure. Similarly, the Board will reassign a case from one Regional Board to another if it appears that efficiency of renegotiation procedure will be promoted thereby.

§ 1422.232-2 Designation of cases.

At the time of assignment, every case will be designated by the Board as either a Class A case or a Class B case. Generally, a Class A case will be one in which the contractor reports on the Standard Form of Contractor's Report that it has derived from subject contracts profits of more than $400,000, and a Class B case will be one in which the contractor reports on the Standard Form of Contractor's Report that it has derived from subject contracts profits of $400,000 or less. The Board has delegated to the Regional Boards authority (a) in Class A cases, to make recommended determinations of excessive profits to the Board for final determination by the Board, and (b) in Class B cases, to make final determinations of excessive profits. § 1422.232-3 Notification to contractor

of assignment.

The Regional Board to which the case is assigned will notify the contractor of the assignment and will also advise the contractor whether the case is a Class A case or a Class B case.

[17 F. R. 2045, Mar. 8, 1952]

§ 1422.233-2 Class B cases.

The Regional Board to which a Class B case is assigned may cancel such assignment whenever it appears that the contractor has not realized excessive profits for the fiscal year in question.

[17 F. R. 2045, Mar. 8, 1952]

§ 1422.233-3 Effect of cancellation.

After an assignment has been canceled, no further action will be taken by the Board or the Regional Board, as the case may be, with respect to the fiscal year in question in the absence of a subsequent indication that there is a possibility that the contractor has realized excessive profits for such fiscal year. [17 F. R. 2045, Mar. 8, 1952] § 1422.234

Reassignment to Board.

A case will be reassigned from a Regional Board to the Board in the circumstances set forth in § 1422.244.

Subpart D-Conduct of Renegotiation

AUTHORITY: The provisions of this Subpart D issued under sec. 109, 65 Stat. 22; 50 U.S.C. App. 1219.

§ 1422.241 Statutory provision.

Subsection (b) of the act provides in part as follows:

Whenever in the opinion of the Secretary of Defense excessive profits are reflected under any contract or contracts or subcontract or subcontracts required to contain the Renegotiation Article prescribed in subsection (a), the Secretary is authorized and directed to renegotiate such contracts and subcontracts for the purpose of eliminating excessive profits. He shall endeavor to make an agreement with the contractor or subcontractor with respect to the amount, if any, of such excessive profits and to their elimination. I no such agreement 18

Renegotiation proceedings will be commenced by mailing a notice to that effect by registered mail to the contractor. Ordinarily, renegotiation proceedings will not be commenced until after the contractor has filed a Standard Form of Contractor's Report and the case has been assigned to a Regional Board for renegotiation (see § 1422.231).

[17 F. R. 1385, Feb. 13, 1952]

§ 1422.243 Conduct of renegotiation by Regional Board.

After a case has been assigned to a Regional Board for renegotiation, the Regional Board will review the Standard Form of Contractor's Report submitted by the contractor and will determine what additional information is necessary to enable the Regional Board to consider the contractor's operations for the fiscal year under review. When necessary, preliminary meetings with the contractor will be held to discuss the information to be presented by the contractor and the manner in which it is to be presented. The Regional Board will endeavor to keep the number of such meetings as small as possible. After all relevant information concerning the fiscal year under review has been assembled, a meeting will be held with the contractor, unless the Regional Board and the contractor are both of the opinion that no purpose would be served by the holding of such a meeting. At this meeting the contractor will have an opportunity to discuss the material previously submitted by him and any other matters which he considers pertinent to the case. After the meeting has been concluded, or after it has been determined that no meeting will be held, the Regional Board will advise the contractor of its determination of the amount, if any, of excessive profits which the contractor has realized during the fiscal year in question. If the contractor has previously met only with the staff of the Regional Board, he may, at his option, meet with at least one member of the Regional Board concerning the case before the Regional Board takes final

action. The extent to which the determination of the Regional Board is subject to Board approval and the manner in which the determination will be embodied in a formal document are set forth in Subparts E to G of this part. [17 F. R. 1385, Feb. 13, 1952]

§ 1422.244 Conduct of renegotiation by Board.

A case will be reassigned from a Regional Board to the Board for further proceedings when (a) a Regional Board makes a determination in a Class A case with which the contractor or the Board is not in accord and when the Board does not direct the Regional Board to conduct further proceedings in the matter (see §§ 1422.251-1, 1422.263-1, and 1422.272-1); or (b) a Regional Board makes a determination by unilateral order in a Class B case and the Board initiates a review of such case (see § 1422.272-2); or (c) the Board considers for any other reason that the case should be handled by the Board rather than by the Regional Board to which the case has been previously assigned. After a case is so reassigned, the Board will make a determination of the amount of excessive profits, if any, which the contractor has realized for the fiscal year under review on the basis of the financial and other data collected by the Regional Board and such further information as the Board considers pertinent and after giving the contractor an opportunity to meet with one or more members of the Board. The determination of the Board will be embodied in a clearance notice, a clearance agreement, a refund agreement or a unilateral order, whichever is appropriate (see §§ 1422.254, 1422.264 and 1422.274).

[17 F. R. 1385, Feb. 13, 1952]

§ 1422.245 Filing of information and requests by contractor.

[17 F. R. 5762, June 27, 1952]

§ 1422.245-1 Scope.

Sections 1422.245-1 to 1422.245-4 prescribe general rules applicable to the time, place and manner of filing information and requests in connection with renegotiation proceedings. As used in §§ 1422.245-1 to 1422.245-4 the term "filing" means the submission by the contractor of any such information requests.

[17 F. R. 5762, June 27, 1952]

or

§ 1422.245-2 Form and contents for filings.

(a) General. When no particular form for filing is requested by the Board or a Regional Board or is prescribed in this subchapter, information or requests shall be filed in the form of a letter, telegram or other writing. Every filing shall contain the name and address of the contractor and a reference to the fiscal year or period to which the filing relates.

(b) Amended filings. If the contractor discovers an error or omission in information already filed pursuant to the 1948 act, or if the contractor obtains new information materially affecting information which was filed pursuant to the 1948 act, the contractor shall file full and correct information forthwith. In the event that the contractor discovers a material error in the Standard Form of Contractor's Report (see § 1422.222) after filing but before receiving notice of assignment (see § 1422.232-3) for the fiscal year to which such filing relates, the contractor shall file an amended Standard Form of Contractor's Report, or portion thereof, indicating the changes contained therein. The Board or a Regional Board may accept or reject, at its discretion, any amended filing received after the period of time for filing (see § 1422.245-4), but such amended filing will normally be accepted if the Board or Regional Board considers that the proper conduct of a renegotiation proceeding is facilitated thereby.

[17 F. R. 5762, June 27, 1952]

§ 1422.245-3 Place for filing.

(a) Principal offices.

The principal

office of the Board is located at 333 Third Street, NW., Washington, D.C., and the mailing address of the Board is the Renegotiation Board, Washington 25, D.C. The following are the addresses of the principal offices of the Regional Boards: Boston Regional Renegotiation Board, 140 Federal Street, Boston 10, Mass.

Chicago Regional Renegotiation Board, U. S. Courthouse, 219 South Clark Street, Chicago 4, Ill.

Detroit Regional Renegotiation Board, David Broderick Tower Building, 10 Witherell Street, Detroit 26, Mich.

Los Angeles Regional Renegotiation Board, 5504 Hollywood Boulevard, Los Angeles 28, Calif.

New York Regional Renegotiation Board, John Wanamaker Building, 70 East Tenth Street, New York 3, N. Y.

Washington Regional Renegotiation Board, Rizik Building, 1737 L Street NW., Washington 25, D.C.

(b) Filing of information. The Standard Form of Contractor's Report shall be filed with the Director, Office of Assignment and Statistics, of the Board at the principal office of the Board. Such other information, records, or data which are determined to be necessary in renegotiation proceedings shall be filed at the place designated by the Board or Regional Board, as the case may be.

(c) Filing of certain requests with Board. The request for review of determination in a Class B case, as provided in § 1422.272—2, and requests for statements of determination, facts and reasons, when directed to the Board pursuant to § 1422.291 or § 1422.292, shall be filed with the Secretary to the Board at the principal office of the Board.

(d) Filing of certain requests with Regional Boards. Requests for statements of determination, facts and reasons, when directed to a Regional Board pursuant to § 1422.291 or § 1422.292, shall be filed with the Director, Division of Administration, of such Regional Board at the office of such Regional Board.

[17 F. R. 5762, June 27, 1952, as amended at 17 F. R. 8362, Sept. 17, 1952]

§ 1422.245-4 Time for filing.

(a) General. Time limitations are prescribed in this subchapter for the filing of certain information and requests by the contractor, subject to the provisions of paragraph (d) of this section relating to extensions of time. Where no such time limitation is prescribed, the information or request shall be filed within a reasonable time. Filings will be considered made when received at the place prescribed in this subchapter. Filings shall be made during hours of business, as set forth in paragraph (b) of this section, and within the appropriate period of time computed according to the provisions of paragraph (c) of this section.

(b) Hours of business. The offices of the Board and of Regional Boards are open every day except Saturdays, Sundays, and holidays. The hours of business of such offices are from 8:30 a. m. to 5 p. m., standard time or daylight saving time, as applicable in the time zone and city in which each such office is located.

(c) Computation of time. In computing periods of time prescribed for filing of information or requests by the

contractor, the day of the act, event or default after which such period begins to run is not included. The last day of the period so computed is included, unless it is a Saturday, Sunday, or legal holiday in the District of Columbia, in which case the period runs until the close of business of the next day which is not a Saturday, Sunday, or holiday.

(d) Extensions of time. Extensions of time for filing will be granted by the Board, if the filing is to be made with the Board, or by the appropriate Regional Board, if the filing is to be made with such Regional Board, upon request of the contractor for good cause: Provided, however, That the time for filing a request for review of a determination in a Class B case, as provided in § 1422.272-2, is not subject to extension. [17 F. R. 5762, June 27, 1952]

Subpart E-Clearance Procedure AUTHORITY: The provisions of this Subpart E issued under sec. 109, 65 Stat. 22; 50 U.S.C. App. 1219.

SOURCE: The provisions of this Subpart E appear at 17 F.R. 1386, Feb. 13, 1952, unless otherwise noted.

§ 1422.251 When clearance procedure used.

The procedure set forth in this part will be used when a Regional Board or the Board determines that the contractor has not realized excessive profits for a fiscal year.

§ 1422.252 Determination by Regional Board.

When a Regional Board determines in a Class A case that the contractor has not realized excessive profits for the fiscal year under review, the Regional Board will notify the Board of the Regional Board's determination and submit a report of the case to the Board. The Regional Board will notify the contractor of the action taken by the Regional Board. Upon receipt of notification from a Regional Board of the determination of such Regional Board that the contractor has not realized excessive profits, the Board will consider the case and notify the Regional Board either that it is in accord with the determination or that it has not satisfied itself that the determination is correct. In the former event, the Regional Board will embody its determination in a clearance. In the latter

§ 1422.253 Determination by Board. When a case is transferred to the Board pursuant to § 1422.244 and the Board determines that the contractor did not realize excessive profits for the fiscal year under review, the Board will embody its determination in a clearance, except that if the contractor has previously executed a clearance agreement and the Board approves such agreement, the Board will authorize the Regional Board to execute such agreement on behalf of the Government.

[18 F. R. 1134, Feb. 27, 1953]

§ 1422.254 Form of clearance.

The Regional Board or the Board, as the case may be, will issue a clearance notice to the contractor when it has been determined that the contractor has not realized excessive profits, unless the determination is conditioned upon the happening of subsequent events. In the latter case, such determination will be embodied in a clearance agreement. When a clearance notice has been issued in a case, no further action will be taken unless it later appears that the data upon which the determination was made did not reflect correctly the profits derived by the contractor from subject contracts for the fiscal year under review.

Subpart F-Agreement Procedure

AUTHORITY: The provisions of this Subpart F issued under sec. 109, 65 Stat. 22; 50 U.S.C. App. 1219.

SOURCE: The provisions of this Subpart F appear at 17 F.R. 1386, Feb. 13, 1952, unless otherwise noted.