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Osage. Keystone, Okla-
Arkansas. Laurel, Ky---
Laurel. Libby, Mont-
Kootenai. Little Goose, Wash--
Snake. Lookout Point, Oreg-
Willamette. Lower Granite, Wash
Snake. Lower Monumental, Wash.
Snake. McGee Bend, Tex----
Angelina. McNary, Oreg. and Wash..
Columbia. Millers Ferry, Ala.
Alabama. Narrows, Ark.
Quachita. Norfolk, Ark-
White. Oahe, S. Dak..
Missouri. Old Hickory, Tenn.
Cumberland. Ozark, Ark.
Arkansas. Philpott, Va.-
Roanoke. Robert S. Kerr, Okla..
Arkansas. St. Marys, Mich.-
St. Mary. Stockton, Mo.--
Sac. Table Rock, Mo. and Ark.
Chattahoochee. Whitney, Tex..
Brazos. Wolf Creek, Ky
Cumberland. (13) Bonneville Power Administration.Removed to Appendix.
(14) Tennessee Valley Authority.—Removed to Appendix. 72
(15) (United States) Geological Survey Removed to Appendix.
(16) Bureau of Reclamation.-Removed to Appendix.
(17) Military exchanges and similar organizations. Contracts for the purchase of materials by military exchanges, ships' service stores, slop chests, post restaurants, officers' or noncommissioned officers' clubs, benefits or welfare funds and similar organizations using nonappropriated funds.
(18) All contracts for maintenance dredging.
(c) Limitation on exemptions.-No contract of any class or type set forth in paragraph (b) of this section is exempt under section 106(a) (6) of the act if the Department making the contract has determined that the contract has a direct and immediate connection with the national defense and such determination is set forth in the contract or any amendment or supplement thereto, except that, in the case of contracts made before the effective date of this regulation, it shall be sufficient if written notice of such determination is otherwise given to the contractor by such Department. Any determination to be made pursuant to the provisions of this paragraph shall be made by the head of such Department or by a person responsible directly to him and specifically authorized by him to make such determinations.
(d) Interpretation of exemptions.—Re-
(e) Procedure for exemption of contracts re-
(f) Procedure for exemption of individual
1455.4 Contracts when contractual provi information which would support the conclusions adequate to prevent excessive prof sion that the provisions of the prime contract its.-(a) Statutory authority.--Section 106 or subcontract are otherwise adequate to pre(d) (3) of the act authorizes the Board in its vent excessive profits. Accordingly, prime condiscretion to exempt from some or all of the pro tractors or subcontractors who believe that their visions of the act the following:
prime contracts or subcontracts should be ex(3) any contract or subcontractor performance
empted under this provision should address thereunder during a specified period or periods if, in requests to the agencies entering into the prime the opinion of the Board, the provisions of the contract contracts involved. are otherwise adequate to prevent excessive profits ;
1455.5 Contracts and subcontracts of a (b) Exemptions.-Pursuant to the forego secret nature.-(a) Statutory authority.-ing authority, the Board has exempted from Section 106(d) (4) of the act authorizes the renegotiation the following:
Board in its discretion to exempt from some (1) Maritime Administration. All operat or all of the provisions of Title I of the act the ing differential subsidy contracts of the Mari following: time Administration which are let under
(4) any contract or subcontract the renegotiation authority of 46 U.S.C. 1171, 1173, as amended, of which would jeopardize secrecy required in the whenever such contracts contain or incorporate public interest; by reference or are subject to the redetermina
(b) Exemption of individual prime contracts tion and recapture provisions of 46 U.S.C. and subcontracts --The Board will exempt any 1176. This exemption applies only to receipts prime contract or subcontract the renegotiation and accruals derived from the United States of which would jeopardize secrecy required in in the form of subsidy payments. It does not the public interest. Requests for exemption of exempt renegotiable receipts or accruals other individual contracts under this section will be wise derived, including payments by shippers entertained only if made by the agency entering for freight charges.
into the prime contract sought to be exempted (2) Defense Minerals Exploration Adminis or the prime contract to which the subcontract tration.-Removed to Appendix.
sought to be exempted relates. (3) Small Defense Plants Administration. 1455.6 Subcontracts as to which it is not Removed to Appendix.
administratively feasible to segregate prof. (4) Small Business Administration. All its.-(a) Statutory authority.-Section 106 prime contracts entered into by the Small Busi
(d) (5) of the act authorizes the Board in its ness Administration under the authority of sec
discretion to exempt from some or all of the tion 207(c) of the Small Business Act of 1953,
provisions of Title I of the act the following: Public Law 163, 83d Congress, First Session,
(5) any subcontract or group of subcontracts not with any of the Departments named in or des
otherwise exempt from the provisions of this section, ignated pursuant to section 103 of the act. This
if, in the opinion of the Board, it is not administraexemption shall not extend to subcontracts re
tively feasible in the case of such subcontract or in lated to such prime contracts.
the case of such group of subcontracts to determine
and segregate the profits attributable to such subcon(c) Exemption of individual prime contracts
tract or group of subcontracts from the profits attriband subcontracts.-The Board will exempt an
uable to activities not subject to renegotiation. individual prime contract or subcontract, or
utable to activities not subject to renegotiation. performance thereunder during a specified
(b) “Stock item" exemption; amounts reperiod or periods if, in the opinion of the Board,
ceived or accrued before July 1, 1967.—The the provisions of the contract are otherwise
Board has found that it is not administratively, adequate to prevent excessive profits. The
feasible to determine and segregate the profits Board will make such an exemption only after
attributable to activities subject to renegotiait has received from the agency entering into the prime contract sought to be exempted, or the
tion from those not so subject in the case of the
following and has, therefore, exempted from prime contract to which the subcontract sought to be exempted relates, a request for the exemp the provisions of the act, to the extent of tion of such prime contract or subcontract and amounts received or accrued prior to July 1,
1967, all subcontracts subject to the act which are for materials (including maintenance, repair and operating supplies) customarily purchased for stock in the normal course of the purchaser's business, except when such materials are specially purchased for use in performing one or more prime contracts or higher tier subcontracts subject to the act.
(c) Application of exemption.-(1) When the purchaser customarily carries an article in stock and purchases a supply of it to be placed in stock, the purchase is not subject to renegotiation merely because the purchaser knows that some portion of the stock thus replenished will inevitably be used in the performance of renegotiable contracts or subcontracts then on hand, but when materials have been specially purchased for use in performing one or more renegotiable contracts or subcontracts, the subcontract for such a purchase is subject to renegotiation, notwithstanding that the article may be customarily carried in stock by the purchaser, and irrespective of the amount customarily carried. When items are specially purchased for use in performing one or more renegotiable contracts or subcontracts, it is immaterial that the purchaser does not know at the time of purchase the specific contract or subcontract in the performance of which such articles or any portion of them will be used, or even that the contract or subcontract has not yet been let; the purchase is subject to renegotiation in its entirety.
(2) Any one or more of the following circumstances normally would indicate that the article was "specially purchased” and not exempt:
(i) That the specifications of the article were adapted to the purchaser's renegotiable business only.
(ii) That the article was segregated or earmarked, either in whole or in part, for the per
formance of renegotiable contracts or subcontracts.
(iii) That the purchaser represented to the supplier that the article was required for the performance of military or other renegotiable contracts or subcontracts, or extended to the supplier a preference rating or allotment symbol applicable only to such contracts or subcontracts.
(iv) That the amount of the purchase coincided substantially with the purchaser's requirements for performance of his renegotiable contracts or subcontracts, or those he expected to obtain and was abnormal to his usual requirements.
(v) That all or substantially all of the purchaser's business in the plant or other facility to which the article was delivered was subject to renegotiation.
1455.7 Subcontracts related to exempt
1455.8 Renegotiation clause in exempt
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amount greater than the amount by which such (2) of the act and this section shall then be ap-
(c) In the application of the “floor” provi will be reduced to the same fractional part
exceed $250,000, $500,0000, $1,000,000 or $25,000, gotiation will be deemed to have been con as the case may be, section 105(f) of the act cluded, in the absence of unusual circumstances, provides that the contractor shall not be renegoin the order in which the fiscal years of such tiated for such year; but when the applicable contractors ended or, if such fiscal years ended minimum amount is exceeded and the contractor on the same date, then in the order in which is renegotiated for its fiscal year, it is renegotisuch fiscal years began.
ated on the basis of all of its renegotiable re(d) In any case in which an adjustment for ceipts or accruals for such year, including such taxes (other than Federal taxes) measured by $250,000, $500,000, $1,000,000 or $25,000, as the income is required (see section 1459.9 of this
be. subchapter), excessive profits shall first be de (b) Subcontracts are not exempted merely termined and the appropriate adjustment for because the receipts or accruals of the prime such taxes measured by income shall be made, contractor or any higher tier subcontractor do without regard to any limitations imposed by not exceed $250,000 or $25,000, as the case may section 105 (f) (1) or (2) of the act and this sec be. tion. The limitations of section 105 (f) (1) or 1458.6 Tests of “control.”—For the pur
poses of section 105(f) of the act, in determining whether the contractor controls or is controlled by or under common control with another person, the following principles will be followed:
(a) Corporate control.-A parent corporation which owns more than 50 percent of the voting stock of another corporation controls such other corporation and also controls all corporations controlled by such other corporation.
(b) Individual control.-An individual who owns more than 50 percent of the voting stock of a corporation controls the corporation and
also controls all corporations controlled by the corporation.
(c) Partnership control.-A general partner who is entitled to more than 50 percent of the profits of the partnership controls the partnership.
(d) Joint venture control.-A joint venturer who is entitled to more than 50 percent of the profits of a joint venture controls the joint venture.
(e) Other cases.-Actual control is a question of fact. Even though the foregoing conditions do not exist, the Board may determine that actual control exists.