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1 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, 1910 K Street NW., Washington, D.C. 20446.

Eastern Regional Renegotiation Board, 1634 Eye
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 Senate. The President designates one member to serve as Chairman.

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LIBRARY

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, 1910 K Street NW., Washington, D.C. 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 other matters of a general nature, to the Secretary to the Board.

Forms and instructions for filing negotiation 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 Com

merce.

Official copies of the statutes referred to herein may be obtained from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

The Renegotiation Board Regulations and current supplements thereto may be pur

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DEPOSITED BY THE UNITED STATES OF AMERICA

chased 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-the-floor 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 clearances or make refund agreements in cases involving aggregate renegotiable profits of $800,000 or less (Class B cases). If, in a refund case,

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the contractor declines to enter into an agreement, the regional board issues an order directing the payment of the refund. From such an order, the contractor has a right of appeal to the Board.

In cases involving renegotiable profits of more than $800,000 (Class A cases), the regional boards do not have final authority, and their recommendations must be approved by the Board before refund agreements may be executed or clearances issued. If a regional board recommendation is not acceptable to either the Board or the contractor, the case is reassigned from the regional board to the Board for further processing and completion.

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 Tax Court of the United States. Decisions of the Tax Court are reviewable on limited grounds in the courts of appeals.

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.

6 Seal. The seal of the Board shall be judicially noticed. A facsimile is set forth below:

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RENEGOTIATION BOARD REGULATIONS

FOREWORD TO AMENDMENT No. 22

Enclosed herewith is the 22nd series of revised pages of RENEGOTIATION BOARD REGULATIONS. Amendment No. 21 gave effect to all amendments and additions published in the Federal Register on or before March 1, 1967. This publication gives effect to all later amendments and additions published in the Federal Register on or before July 15, 1967. The enclosed pages should be inserted in the regulations in accordance with the filing instructions set forth below. When old pages are removed, they may be thrown away unless it is desired to preserve them for reference.

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Statement of organization and functions completely revised.
Part 1452, Table of Contents corrected.

§ 1452.7 (a), "art" corrected to "part" in paragraph 3 (C) of
statutory provision.

§ 1453.3 (d) (2) (i), "1965" changed to "1966."

§ 1453.5 (g) revoked.

Part 1454, Table of Contents corrected.

§ 1455.6 (b), "1967" changed to "1968" in title and text.

§ 1456.3 (b) (3), "used" corrected to "issued."

§ 1456.4 (b) (1), last sentence removed to Appendix.
Part 1457, Table of Contents revised.

§ 1457.9, section completely revised.

Part 1459, Table of Contents corrected to add § 1459)
§ 1459.7 (c), paragraph designation corrected.
Part 1460, Table of Contents corrected to add § 145
Part 1461, Table of Contents corrected (§ 1461.3:.
Part 1463, Table of Contents corrected (§ 1463.4).
Part 1464, Table of Contents revised (§1464.12).
§ 1464.12 completely revised.

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§ 1467.26 (b) (3) added.

§ 1467.30 (b) (3) added.

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1101-1106.1
Inde
1111-1124.1 In

sed.

Appendix END

Sec.

1452.1

Part 1452 Prime Contracts and Subcontracts

Within the scope of the Act

General coverage of the act.

1452.2 Application of the act to prime contracts. 1452.3 Application of the act to subcontracts.

1452.4 Subcontracts to perform work or furnish materials.

1452.5 Real property.

1452.6

Patent licenses.

1452.7 Brokers and manufacturers' agents. 1452.8 Effect of renegotiation clause.

AUTHORITY: Sections 1452.1 to 1452.8 issued under sec. 109, Pub. Law 9, 82d Cong. Interpret or apply sections 102 to 104. Pub. Law 9, 82d Cong.

1452.1 General coverage of the act.-(a) Coverage through December 31, 1956-Removed to Appendix.

(b) Coverage after December 31, 1956— (1) Statutory provisions.—(i) Section 102 (a) of the act, as amended by Pub. Law 870, 84th Cong., approved August 1, 1956, effective December 31, 1956, provides as follows:

In general. The provisions of this title shall be applicable (1) to all contracts with the Departments specifically named in section 103 (a), and related subcontracts, to the extent of the amounts received or accrued by a contractor or subcontractor on or after the first day of January 1951, whether such contracts or subcontracts were made on, before, or after such first day, and (2) to all contracts with the Departments designated by the President under section 103 (a), and related subcontracts, to the extent of the amounts received or accrued by the contractor or subcontractor on or after the first day of the first month beginning after the date of such designation whether such contracts or subcontracts were made on, before, or after such first day.

(ii) Section 103 (a) of the act, as amended, provides as follows:

Department-The term "Department" means the Department of Defense, the Department of the Army, the Department of the Navy, the Department of the Air Force, the Maritime Administration, the Federal Maritime Board, the General Services Administration, the National Aeronautics and Space Administration, the Federal Aviation Agency, and the Atomic Energy Commission. Such term also includes any

other agency of the Government exercising functions having a direct and immediate connection with the national defense which is designated by the President during a national emergency proclaimed by the President, or declared by the Congress, after the date of the enactment of the Renegotiation Amendments Act of 1956; but such designation shall cease to be in effect on the last day of the month during which such national emergency is terminated.

(iii) Section 102 (c) of the acts, as amended, provides as follows:

(c) Termination-(1) In general.-The provisions of this title shall apply only with respect to receipts and accruals, under contracts with the Departments and related subcontracts, which are determined under regulations prescribed by the Board to be reasonably attributable to performance prior to the close of the termination date. Notwithstanding the method of accounting employed by the contractor or subcontractor in keeping his records, receipts or accruals determined to be so attributable, even if received or accrued after the termination date, shall be considered as having been received or accrued not later that the termination date. For the purposes of this title, the term "termination date" means June 30, 1968.

(2) Termination of status as Department.-When the status of any agency of the Government as a Department within the meaning of section 103 (a) is terminated, the provisions of this title shall apply only with respect to receipts and accruals, under contracts with such agency and related subcontracts, which are determined under regulations prescribed by the Board to be reasonably attributable to performance prior to the close of the status termination date. Nowithstanding the method of accounting employed by the contractor or subcontractor in keeping his records, receipts or accruals determined to be so attributable, even if received or accrued after the status termination date, shall be considered as having been received or accrued not later than the status termination date. For the purposes of this paragraph, the term "status termination date" means, with respect to any agency, the date on which the status of such agency as a Deparment within the meaning of section 103 (a) is terminated.

1452.2 Application of the act to prime contracts. Except as exempted pursuant to

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