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List A-Continued

River basin
Center Hill, Tenn.-

Cheatham, Tenn..

Chief Joseph, Wash---

Clark Hill, Ga. and S.C----

Cordell Hull, Tenn---

Cougar, Oreg---

Dale Hollow, Tenn..

Dardanelle, Ark.---

DeGray, Ark-----

Denison, Tex. and Okla..

Detroit, Oreg-

Eufaula, Okla--

Folsom, Calif..

Fort Gibson, Okla.

Fort Peck, Mont--

Fort Randall, S. Dak.

Garrison, N. Dak----

Gavins Point, Nebr. and S. Dak---- Missouri.
Green Peter, Oreg----

Middle Santiam.
Greers Ferry, Ark-----

Hartwell, Ga. and S.C----

Hills Creek, Oreg-

Ice Harbor, Wash---

J. Percy Priest, Tenn.

Jim Woodruff, Fla.---

John Day, Oreg. and Wash..

John H. Kerr, Va----

Roanoke. Jones Bluff, Ala---

Alabama. Kaysinger Bluff, Mo..

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.

Tenkiller Ferry, Okla.---

The Dalles, Oreg. and Wash ----- Columbia.
Walter F. George, Ala. and Ga----- Chattahoochee.
Webbers Falls, Oklac-.

West Point. Ga.---

Chattahoochee. Whitney, Tex..

Brazos. Wolf Creek, Ky

Cumberland. (13) Bonneville Power Administration.Removed to Appendix.

(14) Tennessee Valley Authority.Removed to Appendix.

(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-
moved to Appendix.

(e) Procedure for exemption of contracts re-
lating to floods, fires, and other natural dis-
asters.—Upon the occurrence of a major flood,
conflagration, earthquake, epidemic, or other
natural disaster, the Board will entertain re-
quests from authorized procurement officers of
any Department, and in appropriate cases
will determine that any contracts let by such
procurement officers for emergency procure-
ment of relief supplies, for emergency repairs,
or for other related purposes are not subject to
renegotiation under the act. The request shall
be transmitted through regular channels in the
Department involved unless the emergency
necessitates an immediate telegraphic answer,
in which case it may be addressed directly to
the Board.

(f) Procedure for exemption of individual
contracts.-Any individual prime contractor
who believes that its prime contract is not
directly and immediately connected with the
national defense may submit its recommenda-

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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

tion from those not so subject in the case of the the prime contract sought to be exempted, or 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,


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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
prime contracts and subcontracts. The
Board has exempted all subcontracts related to
the prime contracts and subcontracts exempted
pursuant to the authority of section 106(d) of
the act, except (a) subcontracts related to prime
contracts and subcontracts exempted in section
1455.2 and (b) other subcontracts, when the
Board, in exempting prime contracts or subcon-
tracts, determines that the exemption will not
extend to some or all of the subcontracts related
to such prime contracts or subcontracts.

1455.8 Renegotiation clause in exempt
contracts. The renegotiation clause provided
for by section 104 of the act shall not be in-
serted in prime contracts and subcontracts ex-
empted in this part, except that there shall be
inserted in prime contracts and subcontracts ex-
empted in section 1455.2 a provision requiring
the prime contractor or subcontractor, as the
case may be, to insert a renegotiation clause in
each subcontract into which it enters and which
is not exempt from the provisions of the act.

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amount greater than the amount by which such (2) of the act and this section shall then be ap-
aggregate exceeds $25,000. Notwithstanding plied in determining the amount of excessive
the preceding sentence, subcontracts described profits to be eliminated.
in section 103(g) (3) (A) and (B) of the act 1458.4 Proration of statutory minimum.-
for architectural, design or engineering serv- For the purpose of making the computation de-
ices, no part of which services is or was related scribed in section 1458.2:
to the effecting or procuring of a contract with (a) In the case of a fiscal year which is a
a Department or a subcontract, will be treated, fractional part of twelve months, the $250,000,
for the purposes of this section and $$ 1458.4 $500,000 and $1,000,000 amounts specified in sec-
and 1458.5, as if such subcontracts were subcon- tion 105(f) (1) of the act and the $25,000
tracts described in section 103(g) (1) of the act. amount specified in section 105(f) (2) thereof

(c) In the application of the “floor” provi- will be reduced to the same fractional part
sions set forth in paragraphs (a) and (b) of thereof.
this section, if any related contractor has been (b) Removed to Appendix.
renegotiated prior to the renegotiation of the (c) Removed to Appendix.
contractor, the receipts or accruals of such re- (d) In the case of a fiscal year beginning on
lated contractor, received or accrued during the or before the termination date and ending after
fiscal year of such contractor, shall be adjusted. the termination date (see $ 1466.2 of this sub-
In the absence of evidence to the contrary, a chapter), the $1,000,000 amount and the $25,000
determination of excessive profits to be elimi- amount will be reduced to an amount which
nated shall, for the purposes of this paragraph, bears the same ratio to $1,000,000 or $25,000, as
be deemed to adjust receipts or accruals in each the case may be, as the number of days in such
month ratably, according to the ratio of such fiscal year before the close of the termination
monthly receipts or accruals to the aggregate date bears to 365.
receipts or accruals for the fiscal year of such 1458.5 Statutory minimum not an exemp-
related contractor. There shall not be in- tion.-(a) The minimum amounts specified in
cluded in the aggregate amount of receipts or section 105(f) (1) and (2) of the act are not
accruals of such related contractor any amount exemptions. Such provisions are not to be con-
received or accrued by any such related con- strued to mean that receipts or accruals in the
tractor in any part of the fiscal year of the amount of $250,000, $500,000, $1,000,000 or
contractor during which the relationship be- $25,000, as the case may be, are wholly excluded
tween the contractor and such related contrac- from consideration when the aggregate receipts
tor did not exist. For the purposes of this or accruals of the contractor exceed such
paragraph, when related contractors having amounts for its fiscal year. When the aggre-
different fiscal years are renegotiated concur- gate receipts or accruals of the contractor do not
rently (see § 1464.10 of this subchapter), rene-

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

case may

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

ot ed




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.



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