year ending before July 1, 1943, as to the existence of excessive profits, which is not embodied in an agreement with the contractor or subcontractor, may, within ninety days (not counting Sunday or a legal holiday in the District of Columbia as the last day) after the date of the enactment of the Revenue Act of 1943 [Feb. 25, 1944], file a petition with The Tax Court of the United States for a redetermination thereof, and any such contractor or subcontractor aggrieved by a determination of the Secretary made on or after the date of the enactment of the Revenue Act of 1943 [Feb. 25, 1944], with respect to any such fiscal year, as to the existence of excessive profits, which is not embodied in an agreement with the contractor or subcontractor, may, within ninety days (not counting Sunday or a legal holiday in the District of Columbia as the last day) after the date of such determination, file a petition with The Tax Court of the United States for a redetermination thereof. Upon such filing such court shall have the same jurisdiction, powers, and duties, and the proceeding shall be subject to the same provisions, as in the case of a petition filed with the court under paragraph (1), except that the amendments made to this section by the Revenue Act of 1943 which are not made applicable as of April 28, 1942, or to fiscal years ending before July 1, 1943, shall not apply.

(f) Repricing of war contracts.

For repricing of war contracts, see Title VIII of the Revenue Act of 1943 [section 1192 and note thereunder of this Appendix].

(g) Separability of section.

If any provision of this section or the application thereof to any person or circumstance is held invalid, the remainder of the section and the application of such provision to other persons or circumstances shall not be affected thereby.

(h) Profits affected; termination date.

This section shall apply only with respect to profits derived from contracts with the Departments and subcontracts which are determined under regulations prescribed by the Board to be reasonably allocable to performance prior to the close of the termination date. Notwithstanding the method of accounting employed by the contractor in keeping his books, profits determined to be so allocable shall be considered as having been received or accrued not later than the termination date. For the purposes of this subsection, the term "termination date" means whichever of the following dates first occurs(1) December 31, 1945; or

(2) the date proclaimed by the President as the date of the termination of hostilities in the present war; or

(3) the date specified in a concurrent resolution of the two Houses of Congress as the date of the termination of hostilities in the present war.

(i) Contracts exempted; Board's interpretation and application of exemptions.

(1) The provisions of this section shall not apply to

(A) any contract by a Department with any other department, bureau, agency, or governmental corporation of the United States or with any Territory, possession, or State or any agency

thereof or with any foreign government or any agency thereof; or

(B) any contract or subcontract for the product of a mine, oil or gas well, or other mineral or natural deposit, or timber, which has not been processed, refined, or treated beyond the first form or state suitable for industrial use; or

(C) any contract or subcontract for an agricultural commodity in its raw or natural state, or if the commodity is not customarily sold or has not an established market in its raw or natural state, in the first form or state, beyond the raw or natural state, in which it is customarily sold or in which it has an established market. The term "agricultural commodity" as used herein shall include but shall not be limited to

(i) commodities resulting from the cultivation of the soil such as grains of all kinds, fruits, nuts, vegetables, hay, straw, cotton, tobacco, sugar cane, and sugar beets;

(ii) natural resins, saps and gums of trees;

(iii) animals such as cattle, hogs, poultry, and sheep, fish and other marine life, and the produce of live animals, such as wool, eggs, milk and cream; or

(D) any contract or subcontract with an organization exempt from taxation under section 101(6) of the Internal Revenue Code [I.R.C. 19391; or

(E) any contract with a Department, awarded as a result of competitive bidding, for the construction of any building, structure, improvement, or facility; or

(F) any subcontract, directly or indirectly under a contract or subcontract to which this section does not apply by reason of this paragraph.

(2) The Board is authorized by regulation to interpret and apply the exemptions provided for in paragraph (1) (A), (B), (C), (E), and (F) of this subsection, and interpret and apply the definition contained in subsection (a) (7) of this section.

(3) In the case of a contractor or subcontractor who produces or acquires the product of a mine, oil or gas well, or other mineral or natural deposit, or timber, and processes, refines, or treats such a product to and beyond the first form or state suitable for industrial use, or who produces or acquires an agricultural product and processes, refines, or treats such a product to and beyond the first form or state in which it is customarily sold or in which it has an established market, the Board shall prescribe such regulations as may be necessary to give such contractor or subcontractor a cost allowance substantially equivalent to the amount which would have been realized by such contractor or subcontractor if he had sold such product at such first form or state. Notwithstanding any other provisions of this section there shall be excluded from consideration in determining whether or not a contractor or subcontractor has received or accrued excessive profits that portion of the profits, derived from contracts with the Departments and subcontracts, attributable to the increment in value of the excess inventory. For the purposes of this paragraph the term "excess inventory" means inventory of products, hereinbefore described in this

paragraph, acquired by the contractor or subcontractor in the form or at the state in which contracts for such products on hand or on contract would be exempted from this section by subsection (i) (1) (B) or (C) of this section, which is in excess of the inventory reasonably necessary to fulfill existing contracts or orders. That portion of the profits, derived from contracts with the Departments and subcontracts, attributable to the increment in value of the excess inventory, and the method of excluding such portion of profits from consideration in determining whether or not the contractor or subcontractor has received or accrued excessive profits, shall be determined in accordance with regulations prescribed by the Board. In the case of a renegotiation with respect to a fiscal year ending prior to July 1, 1943, the portion of the profits, derived from contracts with the Departments and subcontracts, attributable to the increment in value of the excess inventory shall (to the extent such portion does not exceed the excessive profits determined) be credited or refunded to the contractor or subcontractor, and in case the determination of excessive profits was made prior to the date of the enactment of the Revenue Act of 1943, such credit or refund shall be made notwithstanding such determination is embodied in an agreement with the contractor or subcontractor, but in either case such credit or refund shall be made only if the contractor or subcontractor, within ninety days after the date of the enactment of the Revenue Act of 1943 [Feb. 25, 1944], files a claim therefor with the Secretary concerned.

(4) The Board is authorized, in its discretion, to exempt from some or all of the provisions of this section

(A) any contract or subcontract to be performed outside of the territorial limits of the continental United States or in Alaska;

(B) any contracts or subcontracts under which, in the opinion of the Board, the profits can be determined with reasonable certainty when the contract price is established, such as certain classes of agreements for personal services, for the purchase of real property, perishable goods, or commodities the minimum price for the sale of which has been fixed by a public regulatory body, of leases and license agreements, and of agreements where the period of performance under such contract or subcontract will not be in excess of thirty days;

(C) any contract or subcontract or performance thereunder during a specified period or periods, if in the opinion of the Board, the provisions of the contract are otherwise adequate to prevent excessive profits;

(D) any contract or subcontract for the making or furnishing of a standard commercial article, if, in the opinion of the Board, competitive conditions affecting the sale of such article are such as will reasonably protect the Government against excessive prices;

(E) any contract or subcontract, if, in the opinion of the Board, competitive conditions affecting the making of such contract or subcontract are such as are likely to result in effective competition with respect to the contract or subcontract price; and

(F) any subcontract or group of subcontracts not otherwise exempt from the provisions of this section, if, in the opinion of the Board, it is not administratively feasible in the case of such subcontract or in the case of such group of subcontracts to determine and segregate the profits attributable to such subcontract or group of subcontracts from the profits attributable to activities not subject to renegotiation.

The Board may so exempt contracts and subcontracts both individually and by general classes or types.

(j) Persons authorized to prosecute claims against United States.

Nothing in sections 109 and 113 of the Criminal Code or in section 190 of the Revised Statutes (U. S. C., Title 5, sec. 99) shall be deemed to prevent any person by reason of service in a department or the Board during the period (or a part thereof) beginning May 27, 1940, and ending on June 30, 1950, from acting as counsel, agent, or attorney for prosecuting any claim against the United States: Provided, That such person shall not prosecute any claim against the United States (1) involving any subject matter directly connected with which such person was so employed, or (2) during the period such person is engaged in employment in a department.

(k) Limitation on authority of Secretaries of Departments.

Nothing in this section shall be construed to limit or restrict any authority or discretion of the Secretary of a Department under the provisions of any other law.

(1) Short title.

This section may be cited as the "Renegotiation Act". (Apr. 28, 1942, ch. 247, title IV, § 403, 56 Stat. 245; Oct. 21, 1942, ch. 619, title VIII, § 801 (a-c), 56 Stat. 982; July 1, 1943, ch. 185, § 1, 57 Stat. 347; July 14, 1943, ch. 239, §§ 1-4, 57 Stat. 564; Feb. 25, 1944, ch. 63, title VII, § 701 (b), 58 Stat. 78; June 30, 1945, ch. 210, § 1, 59 Stat. 294; June 14, 1947, ch. 105, 61 Stat. 133; June 28, 1949, ch. 268, § 2 (a), 63 Stat. 280; Mar. 23, 1951, ch. 15, title II, § 201 (a-d), 65 Stat. 23; Oct. 20, 1951, ch. 521, title VI, § 617, 65 Stat. 569; July 17, 1952, ch. 924, § 2, 66 Stat. 753.)

REFERENCES IN TEXT

Chapter 2E of the Internal Revenue Code [I.R.C. 1939]. referred to in subsec. (a) (4) (B-D), relating to excess profits tax, was repealed as follows: sections 741 and 752 by act Oct. 21, 1942, 4:30 p.m., E.W.T., ch. 619, title II, §§ 224(b), 228(b), 229(a) (1), 56 Stat. 920, 925, 931; sections 710-736, 740, 742-744, 750, 751, 760, 761 and 780784 by act Nov. 8, 1945, ch. 453, title I, § 122 (a), 59 Stat. 568.

Chapter 2B of the Internal Revenue Code [I.R.C. 1939], referred to in subsec. (a) (4) (C, D), relating to declared value excess-profits tax, was repealed by act Nov. 8, 1945, ch. 453, title II, § 202, 59 Stat. 574.

Emergency Price Control Act of 1942, as amended, referred to in subsec. (a) (7) (C) and formerly classified to sections 901-906, 921, 922, 923, 925, 926, and 941-946 of this Appendix terminated June 30, 1947 under the provisions of act July 25, 1946, ch. 671, § 1, 60 Stat. 664. Act of October 2, 1942, referred to in subsec. (a) (7) (C) and formerly classified to sections 961-964 and 965-971 of this Appendix and as an amendment and note under section 713a-8 of Title 15, has expired. See Termination Date notes preceding sections 961-971 of this Appendix

and under section 713a-8 of Title 15, Commerce and Trade.

Amendments made to this section by the Revenue Act of 1943, referred to in subsec. (e)(2), has reference to amendments made by act Feb. 25, 1944.

Sections 109 and 113 of the Criminal Code, referred to in subsec. (1), were repealed by act June 25, 1948, ch. 645, § 21, 62 Stat. 863, eff. Sept. 1, 1948. Similar provisions are now covered by sections 281 and 283 of Title 18, Crimes and Criminal Procedure.

Section 190 of the Revised Statutes (U.S.C., Title 5, sec. 99), referred to in subsec. (j), was repealed by Pub. L. 87-849, § 3, Oct. 23, 1962, 76 Stat. 1126. For similar provisions, see section 207 of Title 18, Crimes and Criminal Procedure.

CODIFICATION

The Department of War was designated the Department of the Army and the title of the Secretary of War was changed to Secretary of the Army by section 205(a) of act July 26, 1947, ch. 343, title II, 61 Stat. 501. Section 205 (a) of act July 26, 1947, was repealed by section 53 of act Aug. 10, 1956, ch. 1041, 70A Stat. 641. Section 1 of act Aug. 10, 1956, enacted "Title 10, Armed Forces" which in sections 3011-3013 continued the military Department of the Army under the administrative supervision of a Secretary of the Army.

AMENDMENTS

1952-Subsec. (a) (4) (D). Act July 17, 1952, extended the filing date for claims from Oct. 31, 1952 to Dec. 31, 1952.

1951-Subsec. (a) (4) (D). Act Oct. 20, 1951, in clause (1) of eighth sentence, extended the time for filing claims for net renegotiation rebates from June 30, 1951 to October 31, 1951. Act Mar. 23, 1951, § 201 (c) added last two sentences.

1949-Subsec. (j). Act June 28, 1949, substituted "June 30, 1950" for "June 30, 1949".

1947-Subsec. (j). Act June 14, 1947, extended the grace period from "six months after termination of hostilities" to "June 30, 1949."

1945 Subsec. (h). Act June 30, 1945, amended subsec. generally and substituted "December 31, 1945" for "December 31, 1944" as termination date.

1944-Act Feb. 25, 1944, amended section generally. 1943-Subsec. (a) (1), (2). Act July 1, 1943, redefined "Department" and "Maritime Commission”.

Subsec. (a) (5). Act July 14, 1943, § 1, redefined "subcontract".

Subsec. (b) (3). Act July 14, 1943, § 2, substituted "in each subcontract described in subsection (a) (5) (ii), and in each subcontract for an amount in excess of $100,000 described in subsection (a) (5) (i)" for "in each subcontract for an amount in excess of $100,000".

Subsec. (b) (6). Act. July 14, 1943, § 3, amended subsec. (b)(6) generally.

Subsec. (e). Act July 14, 1943, § 4, struck out "in an aggregate amount in excess of $100,000."

Subsec. (k). Act July 1, 1943, added subsec. (k). 1942-Subsecs. (a)-(c), and (f). Act Oct. 21, 1942, § 801 (a), (b); amended subsecs. generally. Subsecs. (1) and (j). Act Oct. 21, 1942, § 801 (c), added subsecs. (1) and (j).

CHANGE OF NAME

The official title of the Bureau of Internal Revenue was changed to the Internal Revenue Service by Treas. Dept. Order 150-29, eff. July 9, 1953.

EFFECTIVE DATE OF 1944 AMENDMENT Amendment of section by act Feb. 25, 1944, § 701 (b), was made effective by section 701 (d) thereof, which provided as follows: "The amendments made by subsection (b) shall be effective only with respect to the fiscal years ending after June 30, 1943, except that (1) the amendments inserting subsections (a) (4) (C), (a) (4) (D), (i) (1) (C), (1) (1) (D), (i) (1) (F), (i) (3), and (1) in section 403 of the Sixth Supplemental National Defense Appropriation Act, 1942 [this section], shall be effective as if such amendments and subsections had been a part of section 403 of such Act [this section] on the date of its enactment, and (2) the amendments adding subsections (d) and (e) (2) to section 403 of such Act [this section]

shall be effective from the date of the enactment of this Act [this section]."

EFFECTIVE DATE OF 1943 AMENDMENT

Section 5 of act July 14, 1943, provided that the amendments made by that act, affecting subsecs. (a) (5), (b) (3), (c) (6), and (e), shall be effective as of Apr. 28, 1942. EFFECTIVE DATE OF 1942 AMENDMENT

Act Oct. 21, 1942, affecting subsecs. (a—c), (f), (1) and (j) of this section, was made effective as of Apr. 28, 1942, by section 801 (d) thereof.

TERMINATION DATE

It

Proc. No. 2631, Nov. 16, 1944, 9 F. R. 13739, specified June 30, 1945, as the termination date within the meaning of former provisions of subsec. (h) of this section. was superseded by the amendment of June 30, 1945. ABOLISHMENT OF AGENCIES AND TRANSFER OF FUNCTIONS Section 201 (a) of act Mar. 23, 1951 abolished the War Contracts Price Adjustment Board, which was created by former subsection (d) of this section. Section 201 (b) of act Mar. 23, 1951 provided that all powers, functions and duties conferred on the Board, except those transferred to the Administrator of General Services, were transferred to the Renegotiation Board created by section 1217 of this Appendix. Section 201(d) of act Mar. 23, 1951 provided that all powers, duties and functions conferred upon the Board by subsection (a) (4) (D) of this section were transferred to the Administrator of General Services. Section 201 (1) of act Mar. 23, 1951 affected subsection (a), pars. (1) and (2) of this section by providing that where a renegotiation function has been transferred by or pursuant to law the terms "Secretary" or "Secretaries" and "Department" or "Departments" shall be understood to refer to the successors in function to those officers or officers specifically named in this section. Section 201 of act Mar. 23, 1951, is set out as section 1231 of this Appendix. It also contains provisions relating to transfer of records, refunds under subsections (a) (4) (D) and (1)(3) of this section and the continuation of this section and existing policies and procedures.

All functions of all officers of the Department of the Treasury, and all functions of all agencies and employees of that Department, were transferred, with certain exceptions, to the Secretary of the Treasury, with power vested in him to authorize their performance or the performance of any of his functions, by any of those officers, agencies, and employees, by 1950 Reorg. Plan No. 26, §§ 1, 2, eff. July 31, 1950, 15 F. R. 4935, 64 Stat. 1280, set out as a note under section 241 of Title 5, Executive Departments and Government Officers and Employees. The Bureau of Internal Revenue, referred to in this section, is an agency in the Treasury Department.

The United States Maritime Commission was abolished by 1950 Reorg. Plan No. 21, eff. May 24, 1950, 15 F. R. 3178, 64 Stat. 1273, set out as a note under section 133z-15 of Title 5, Executive Departments and Government Officers and Employees, which transferred part of its functions and part of the functions of its Chairman to the Federal Maritime Board and the Chairman thereof, that Board having been created by that Plan as an agency within the Department of Commerce with an independent status in some respects, and transferred the remainder of that Commission's functions and the functions of its Chairman to the Secretary of commerce, with power vested in the Secretary to authorize their performance by the Maritime Administrator, the head of the Maritime Administration, which likewise was established by the Plan in the Department of Commerce with the provision that the chairman of the Federal Maritime Board should, ex officio, be that Administrator. The Federal Maritime Board, in turn, was abolished by 1961 Reorg. Plan. No. 7, eff. Aug. 12, 1961, 26 F.R. 7315, 75 Stat. 840, which created the Federal Maritime Commission and transferred to it and to the Secretary of Commerce the functions previously performed by the Federal Maritime Board. See note under section 1332-15 of Title 5, Executive Departments and Government Officers and Employees.

All executive and administrative functions of the United States Maritime Commission were transferred to the Chairman thereof by 1949 Reorg. Plan No. 6, eff. Aug. 19,

1949 14 F.R. 5228, 63 Stat. 1069. See note set out under section 133z-15 of Title 5, Executive Departments and Government Officers and Employees.

The War Shipping Administration was terminated as of Sept. 1, 1946, and all functions, powers, etc. transferred to the United States Maritime Commission for purpose of liquidation by Dec. 31, 1946, under authority of act July 8, 1946, ch. 543, § 202, 60 Stat. 501, set out as a note under section 1291 of this Appendix.

The Defense Plant Corporation, the Metals Reserve Company, the Defense Supplies Corporation, and the Rubber Reserve Company were dissolved and their functions transferred to the Reconstruction Finance Corporation by Senate Joint Res., June 30, 1945, ch. 215, § 1, 59 Stat. 310, eff. July 1, 1945, set out as a note under section 611 of Title 15, Commerce and Trade. Thereafter the Reconstruction Finance Corporation was abolished by 1957 Reorg. Plan No. 1, set out as a note under section 133z-15 of Title 5, Executive Departments and Government Officers and Employees.

The War Production Board was terminated and all functions, powers, etc. transferred to the Civilian Production Administration, eff. Nov. 3, 1945, by Ex. Ord. No. 9638, Oct. 4, 1945, 10 F. R. 12591. Thereafter the Civilian Production Administration was consolidated, with other war agencies, into the Office of Temporary Controls by Ex. Ord. No. 9809, set out as a note under section 601 of this Appendix.

DEPARTMENT OF THE AIR FORCE

For transfer of certain functions insofar as they pertain to the Air Force, and to the extent that they were not previously transferred to the Secretary of the Air Force and Department of the Air Force from the Secretary of the Army and Department of the Army, see Secretary of Defense Transfer Order No. 40, July 22, 1949.

TERMINATION OF HOSTILITIES

The cessation of hostilities of World War II was proclaimed at 12 o'clock noon of December 31, 1946, by Proc. No. 2714, set out as note under section 601 of this Appendix.

TERMS USED

Section 701 (a) of act Feb. 25, 1944, provided as follows: "Terms used in this section [section 701 of Act Feb. 25, 1944] shall have the same meaning as when used in section 403 of the Sixth Supplemental National Defense Appropriation Act, 1942 [this section].”

WAR DEPARTMENT NOTICE May 21, 1943, 8 F. R. 7404

EXEMPTION FROM RENEGOTIATION OF CONTRACTS Authority for exemption from renegotiation under section 403 of the Sixth Supplemental National Defense Appropriation Act, 1942, as amended by section 801 of the Revenue Act of 1942 (section 1191 of this Appendix).

Pursuant to subsection 403 (1) (2) (iii) of the Sixth Supplemental National Defense Appropriation Act, 1942, as amended (section 1191 of this Appendix), and the delegation to me from the Secretary of War, dated November 4, 1942, the chief of any technical service and the Commanding General, Army Air Forces, are hereby authorized: (1) To exempt from renegotiation under section 403, as amended (section 1191 of this Appendix), any contract, letter contract, letter purchase order, letter order, or letter of intent, which has been terminated for the convenience of the Government, and any agreement making a negotiated settlement of the whole or any part of the amount due from the Government by reason of the termination of any such instrument, whenever he finds that the provisions of such settlement agreement are adequate to prevent the realization of excessive profits from the performance of any such instrument; and

(2) To delegate to any officer or civilian employee under his direction the authority and discretion to make such exemptions in accordance with paragraph 1 and under such conditions as he may prescribe.

CROSS REFERENCES

Excess profits reduction as precluding allowance of claims for war contract losses, see note under section 106 of Title 41, Public Contracts.

Renegotiation Act of 1948, see section 1193 of this Appendix.

Renegotiation Act of 1951, see section 1211 et seq. of this Appendix.

Termination and settlement of war contracts, see sections 101-125 of Title 41, Public Contracts.

ACT FEB. 25, 1944, CH. 63, TITLE VIII, § 801, 58 STAT. 92

§ 1192. Repricing of war contracts.

CODIFICATION

Section, act Feb. 25, 1944, ch. 63, title VIII, § 801, 58 Stat. 92, relating to repricing of war contracts, terminated on Dec. 31, 1945 under the provisions of section 802 (b) of act Feb. 25, 1944.

ACT MAY 21, 1948, CH. 333, 62 STAT. 259

§ 1193. Renegotiation of airplane contracts. (a) Renegotiation article.

All contracts in excess of $1,000 entered into under the authority of this Act [this section], obligating funds appropriated hereby, obligating funds consolidated by this Act [this section] with funds appropriated, or entered into through contract authorizations herein granted, and all subcontracts thereunder in excess of $1,000 shall contain the following article:

"RENEGOTIATION ARTICLE.-This contract is subject to the Renegotiation Act of 1948 [this section] and the contractor hereby agrees to insert a like article in all contracts or purchase orders to make or furnish any article or to perform all or any part of the work required for the performance of this contract."

(b) Powers and duties of Secretary of Defense; elimi. nation of excess profits; agreements; tax credits. 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) of this section, 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. If no such agreement is reached, the Secretary shall issue an order determining the amount, if any, of such excessive profits and shall eliminate them by any of the methods set forth in subsection (c) (2) of the Renegotiation Act of February 25, 1944, as amended [section 1191 (c) (2) of this Appendix]. In eliminating excessive profits the Secretary shall allow the contractor or subcontractor credit for Federal income and excess profits taxes as provided in section 3806 of the Internal Revenue Code [I.R.C. 1939]. The powers conferred upon the Secretary shall be exercised with respect to the aggregate of the amounts received or accrued under all such contracts and subcontracts by the contractor or subcontractor during his fiscal year or upon such other basis as may be mutually agreed upon; except that this section shall not be applicable in the event that the aggregate of the amounts so received or accrued is less than $100,000 during any fiscal year.

(c) Audit of books and records of contractors or subcontractors; use of services of Bureau of Internal Revenue.

For the purpose of administering this section the Secretary of Defense shall have the right to audit the books and records of any contractor or subcontractor subject to this section. In the interest of economy and the avoidance of duplication of inspection and audit, the services of the Bureau of Internal Revenue shall, upon request of the Secretary of Defense and with the approval of the Secretary of the Treasury, be made available to the extent determined by the Secretary of the Treasury for the purpose of making examinations and audits under this section.

(d) Contracts excepted.

The provisions of this section shall not apply to any of the contracts or subcontracts specified in subsection (i) (1) of the Renegotiation Act of February 25, 1944, as amended [section 1191 (i) (1) of this Appendix], and the Secretary of Defense in his discretion may exempt from the provisions of this section any other contract or subcontract both individually and by general classes or types.

(e) Conclusiveness of agreements or orders; fraud or malfeasance; redetermination by Tax Court. Agreements or orders determining excessive profits shall be final and conclusive in accordance with their terms and except upon a showing of fraud or malfeasance or willful misrepresentation of a material fact shall not be annulled, modified, reopened, or disregarded, except that in the case of orders determining excessive profits the amount of the excessive profits, if any, may be redetermined by the Tax Court of the United States in the manner prescribed in subsection (e) (1) of the Renegotiation Act of February 25, 1944, as amended [section 1191 (a) (1) of this Appendix], except that such redetermination shall be subject to review to the extent and in the manner provided by subchapter B of chapter 5 of the Internal Revenue Code [I.R.C. 1939].

(f) Publication of regulations, standards and procedures.

The Secretary of Defense shall promulgate and publish in the Federal Register regulations interpreting and applying this section and prescribing standards and procedures for determining and eliminating excessive profits hereunder using so far as he deems practicable the principles and procedures of the Renegotiation Act of February 25, 1944, as amended [section 1191 of this Appendix], having regard for the different economic conditions existing on or after the effective date of this Act [May 21, 1948] from those prevailing during the period 1942 to 1945. In any case in which the contract price of any such contract or subcontract was based upon estimated costs, then the Secretary of Defense shall determine the difference between such estimated costs and actual costs and shall, in eliminating excessive profits, take into consideration as an element the extent to which such difference is the result of the efficiency of the contractor or subcontractor.

(g) Delegation of powers and duties of Secretary of Defense.

The powers and duties conferred upon the Secretary of Defense may be delegated by him to any

officer (military or civilian) or agency of the Department of Defense.

(h) Penalties.

Any person who willfully fails or refuses to furnish any information, records, or data required of him under this section, or who knowingly furnishes any such information, records, or data containing information which is false or misleading in any material respect, shall, upon conviction thereof, be punished by a fine of not more than $10,000 or imprisonment for not more than two years, or both. (i) Short title.

This section may be cited as the "Renegotiation Act of 1948." (May 21, 1948, ch. 333, § 3, 62 Stat. 259; Aug. 10, 1949, ch. 412, § 12 (a), 63 Stat. 591.) CHANGE OF NAME

The National Military Establishment was changed to the Department of Defense by act Aug. 10, 1949.

The official title of the Bureau of Internal Revenue was changed to the Internal Revenue Service by Treas. Dept. Order 150-29, eff. July 9, 1953.

TRANSFER OF FUNCTIONS

All functions of all officers of the Department of the Treasury, and all functions of all agencies and employees of that Department, were transferred, with certain exceptions, to the Secretary of the Treasury, with power vested in him to authorize their performance or the performance of any of his functions, by any of those officers, agencies, and employees, by 1950 Reorg. Plan No. 26, §§ 1, 2, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280, set out as a note under section 241 of Title 5, Executive Departments and Government Officers and Employees. The Bureau of Internal Revenue, referred to in this section, is an agency in the Treasury Department.

DEPARTMENT OF DEFENSE PROCUREMENT CONTRACTS FOR FISCAL YEAR 1950 SUBJECT TO THIS SECTION Section 622 (a) of act Oct. 29, 1949, ch. 787, 63 Stat. 1021, provided that: "All negotiated contracts for procurement in excess of $1,000 entered into during the fiscal year 1950 by or on behalf of the Department of Defense (including the Department of the Army, Department of the Navy, and Department of the Air Force), and all subcontracts thereunder in excess of $1,000, are hereby made subject to the Renegotiation Act of 1948 [this section] in the same manner and to the same extent as if such contracts and subcontracts were required by such Act [this section] to contain the renegotiation article prescribed in subsection (a) of such Act [this section]. Each contract and subcontract made subject to the Renegotiation Act of 1948 [this section] by this section shall contain an article stating that it is subject to the Renegotiation Act of 1948 [this section]. In determining whether the amounts received or accrued to a contractor or subcontractor during his fiscal year from contracts and subcontracts subject to the Renegotiation Act of 1948 [this section] amount in the aggregate to $100,000, receipts or accruals from contracts and subcontracts made subject to such Act [this section] by this section shall be added to receipts or accruals from all other contracts and subcontracts subject to such Act [this section]." PROCUREMENT CONTRACTS OF DEPARTMENTS OF THE ARMY, NAVY, AND AIR FORCE DURING FISCAL YEAR 1949 Section 401 of act June 25, 1948, ch. 658, title IV, 62 Stat. 1049, provided that: "The Secretary of Defense is authorized and directed, whenever in his judgment the best interests of the United States so require, to direct the insertion of a clause incorporating the Renegotiation Act of 1948 [this section] in any contracts for the procurement of ships, aircraft, aircraft parts, and the construction of facilities or installations outside continental United States entered into by or in behalf of the Department of the Army, the Department of the Navy or the Department of the Air Force which obligates any funds made available for obligation in the fiscal year 1949."