trol number, suballotment number, authorization accounting activity, type code, property accounting activity and cost code.

§ 737.32-400 Payment to contractors.

§ 737.32-402 Releases as condition precedent to final payment.

(a) All fixed-price types of contracts which provide, in addition to payment of a fixed price for the articles and services covered thereby (whether stated as a single amount or as separate amounts), for (i) adjustment of the fixed price for labor or material escalation, (ii) separate reimbursement of premiums for and related cost of overtime or shift work, or (iii) indemnity by the Government against thirdparty liabilities of the contractor, and all cost-reimbursement contracts, shall provide that the contractor and any assignee shall, as a condition precedent to the final payment under the contract, execute a release of all claims against the Government, its officers, agents and employees under or arising from the contract (see § 737.7– 150). Each of such contracts shall further provide for the withholding until final payment of such amount or amounts as in the opinion of the contracting officer will be adequate to obtain execution of the release to which the Government is entitled (see § 737.7-150) for fixed-price contracts, but in the case of cost-reimbursement type contracts not less than the amounts set forth in § 7.203-4).

(b) In the case of a fixed-price contract within paragraph (a) of this section, the release shall discharge the Government, its officers, agents and employees, of and from all claims under or arising from the contract (see § 737.16-812-50), except if requested by the contractor and if found by the contracting officer to be appropriate, any one or more of the following:

the Government relating to hours of employment or compensation for services.

(2) Specified claims in stated amounts or in estimated amounts where the amounts are not susceptible of exact statement by the contractor, and on such terms and conditions consistent herewith as the contracting officer may prescribe;

(3) Claims based on the liabilities of the contractor to third parties as to which the contractor is to be indemnified by the Government under express contract provisions; and

(4) Claims for reimbursement of expenses (other than expenses of the contractor by reason of its indemnifiIcation of the Government against patent liability) incurred by the contractor under the provisions of the contract relating to patents.

(c) In the case of cost-reimbursement type contracts (see paragraph (f)(ii) of the clauses set forth in § 7.203-4(a) and (b)), the releases shall discharge the Government, its officers, agents and employees of and from all claims under or arising from the contract, except, if requested by the contractor, such claims as set forth in § 16.812(b) and (c). If the contract is within the War Projects Insurance Rating Plan and the National Defense Projects Rating Plan, each such release shall except the rights and obligations of the Government and the contractor under any agreement theretofore or thereafter made for the purpose of providing for the adjustment as between the Government and the insurance carrier of premiums under the Rating Plan as applied to the contract.

(d) Nothing in this NPD precludes the inclusion in contracts other than those within (a) above, of an appropriate provision requiring a release as a condition precedent to final payment by the Government.

$737.32-403 Reporting under the VinsonTrammell Act as condition precedent to final payment.

See § 737.33-201(f) and § 737.33-202

§ 737.33-201 Application, exemptions, and reporting requirements. 1

(a)(1) The profit limitation provisions of the Vinson-Trammell Act are codified in 10 U.S.C. 2382 and 7300, which are referred to in this § 737.33201 as "the Act." In general terms, as indicated in § 7.104-11, the Act applies to any contract or subcontract, which exceeds or may exceed $10,000 in amount, for the construction or manufacture of any complete aircraft or naval vessel, or any portion thereof. The Act imposes a profit limitation of 10% with respect to such vessel contracts and 12% with respect to such aircraft contracts and provides further that the method of ascertaining the amount of excess profit (which is to be paid into the Treasury) shall be determined by the Secretary of the Treasury, in agreement with the Secretary of the Navy, and made available to the public. The current regulations, implementing those provisions with respect to naval vessels and naval aircraft, are set forth in Treasury Decision 4906 (XVIII Cum. Bull. 1939-2,404). These regulations contain the text of Section 3 of the Act, define the terms used therein, explain the scope of that Section and certain exemptions thereof, furnish detailed rules for computing costs and profits and for determining

'Note: Contracting and disbursing officers are advised that the Renegotiation Act of 1951 (50 U.S.C. App. 1211, et seq.) as amended and extended, suspends the operation of the Vinson-Trammell profit limitations in any case in which a contract is subject to the Renegotiation Act. However, because the Renegotiation Act is temporary legislation and upon discontinuation thereof the Vinson-Trammell profit limitations would again come into operation, the clause prescribed in § 7.104-11 must nevertheless be included in the contract.

liability, and prescribe the reports which must be filed.

(2) The Act provides that the profit limitation provisions thereof do not apply to "a contract or subcontract for scientific equipment for communications, target detection, navigation, or fire control" if the Secretary of the Navy designates the contract or subcontract for exemption. Authority to grant or deny exemptions of contracts and subcontracts from such profit limitation provisions, pursuant to the above-quoted language, is delegated by the Secretary of the Navy to the Chief, the Vice Chief, and the Deputy Chief of Naval Material (Procurement and Production). This delegation is subject to the following limitations set forth in SECNAV letter (OGC: WW:ads) of 3 June 1946.

(b) Such exemptions shall be granted for specific contracts or procurements only, and not for classes of equipment as such, and shall be granted only for contracts or procurements covering research, experimental or development work, or an initial production order. No exemption shall be granted except upon application by the contractor concerned, made prior to or at the time of entering into the contract, accompanied by a recommendation by the Chief of the cognizant contracting Bureau, or his representative, setting forth the following:

(1) A description of the equipment covered by the proposed contract and a statement that it is scientific equipment of the kind specified in the exemption provisions of the Act, stating which category the particular equipment falls under;

(2) A statement that the proposed contract calls for research, experimental or development work, or for an initial production order; and

(3) A recommendation by the Bureau that the exemption be granted.

(c) Each application for exemption shall be addressed to the Commander of the cognizant Systems Command by the contractor or subcontractor concerned and, if recommended for approval, shall be forwarded by the Commander of such Systems Command, or his representative, to the Deputy Chief of Naval Material (Procurement

and Production) accompanied by the recommendation as prescribed above. In the event that an application for such exemption is approved, the clause set forth in § 7.104-11(c) should be inserted in the applicable contract.

(1) The Act applies to any contract for the construct ɔn or manufacture of new (i.e., previously non-existent) aircraft or naval vessels, or any portion thereof. The statutory designation of the particular appropriation charged by the contract (for example, "Aircraft and Related Procurement" or "Shipbuilding and Conversion" would generally be indicative of the fact that such a contract was for new construction or manufacture and therefore subject to the provisions of the Act. However, the appropriation test is not conclusive. The charging of a construction appropriation would mean that the Act applied if the procurement was, in fact, not for the construction or manufacture of new aircraft or naval vessels, or portions thereof; conversely, charging an appropriation other than a construction appropriation could result in the Act being applicable if the procurement was, in fact, for the construction or manufacture of new aircraft or naval vessels, or portions thereof.

not

(2) General statements of the applicability of the Act, reflected in court decisions, in opinions of the Attorney General and of the Comptroller General, and in rulings of the Treasury Department, are set forth in paragraph (c)(2)(i) through (iii) of this section, for information purposes only.

construction or manufacture of complete naval vessels or aircraft, or any portion thereof, even though such material requires further fabrication or processing before it can be used in the completed vessels or aircraft, or in any component thereof. Hence, a contract or subcontract for the production of steel plates to become a component part of a complete naval vessel then being constructed would be within the scope of the Act.

(iii) Procurement of Replacements. Since the Act applies only to contracts for the construction or manufacture of complete naval vessels or aircraft, or any portion thereof, it has been held that the Act has no application to contracts for the furnishing of (a) spare parts or (b) replacements needed in making repairs to existing vessels.

(3) Where, at the time of entering into a contract for the procurement of items of equipment or material for use in or in connection with naval vessels or aircraft, the contracting officer cannot determine that any ascertainable part or portion thereof is to be used in the construction or manufacture of any new aircraft or naval vessel, or any portion thereof, the clause set forth in §7.104-11(a) shall not be included in the contract.

(4) The Act requires that, with respect to each contract or subcontract coming within the provisions thereof, the contractor or subcontractor concerned shall make a report to the Secretary of the Navy following completion of such contract or subcontract. Section 3(e) of the Act provides that the original of such report shall be submitted to the Secretary of the Navy within 90 days after completion of each contract or subcontract to which the Act applies. The required reports must be filed by contractors and subcontractors concerned within the stated period with respect to all contracts and subcontracts covered by the Act; accordingly, disbursing officers shall withhold final payment upon such prime contracts until advised that the required report has been filed, and, in addition, the voucher for final payment (to be transmitted to the General Accounting Office

(i) Procurement of Equipment. The Act applies to contracts and subcontracts for the construction or manufacture of items of equipment customarily furnished as portions of complete naval vessels or aircraft at the time such vessels or aircraft are constructed or manufactured. Hence, a contract or subcontract to manufacture shells, torpedo heads, or ammunition for the specific purpose of outfitting new naval vessels would be within the Act.

(ii) Procurement of Material. The Act applies to contracts and subcontracts for the construction or manufacture of material to be used in the

by the disbursing officer) should be supported by a showing that the required report has been filed. Concerning those cases under existing contracts which contain a self-executing clause (which makes the purchase subject to the profit limitation provisions of the Act only if the Act is in fact applicable), the required reports must be filed by contractors concerned within the stated period and prior to final payment of the contract price unless the contractor has demonstrated to the satisfaction of the contracting officer (whether or not supported by a ruling of the Treasury Department) that the Act does not apply to the particular contract.

$737.33-202 Processing of reports.

(a) Contractors and subcontractors performing contracts to which the Vinson-Trammell Act applies are required to file a report with the Secretary of the department concerned within 90 days after completion of the contract.

(b) The following procedures govern the administration of the above reports within the Navy:

(1) Upon receipt in the Secretary's mail room these reports shall be forwarded to the Procurement Control and Clearance Division (MAT 022), Headquarters Naval Material Command.

(2) The Procurement Control and Clearance Division (MAT 022), shall duplicate the reports, keep the original in its master file, and distribute copies to the cognizant contracting bureau and to other procuring activities which may have contracts with the company concerned.

(3) Section 737.33-201(f) requires disbursing officers to withhold final payment on prime contracts until advised that the required report has been filed. Accordingly, upon receipt of the duplicate report, the contracting officer having cognizance of the prime contract concerned shall advise the disbursing officer that this condition precedent to final payments has been fulfilled.

tion for relocation assistance.

Written notice of displacement served personally or by certified (or registered) first-class mail will be given to each individual, family, business, or farm. A displaced individual, business or farm operation must make application for relocation assistance payments within 18 months from the date on which the displaced person moves from the real property acquired or to be acquired, or the date on which final payment is made for the property acquired whichever is later. The time for filing may be extended upon a proper showing of good cause. A displaced individual, business, or farm operation making proper application will be paid promptly after a move. If the agency head, or his designee, determines that delaying payment until after the move will create a hardship, he will authorize an advance payment.

[38 FR 8153, Mar. 29, 1973]

§ 742.103 Appeal rights.

Any person aggrieved by a determination as to eligibility for relocation payment, or the amount of a payment, in a Department of the Navy project may have his application reviewed by the Secretary of the Navy or his desig

nee.

§ 742.104 Assurance of replacement dwelling prior to displacement.

No phase of any project will be initiated or continued if that phase will cause the displacement of any person from a dwelling until the agency has determined on the basis of a current survey and analysis of available replacement housing that prior to displacement there will be available for each displaced person a decent, safe, and sanitary replacement dwelling.

§ 742.105 Adjustments.

The agency head, or his designee, may make adjustments in the requirement for a decent, safe, and sanitary dwelling only in cases of unusual circumstances.