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(ii) from the sales of which by the contractor or subcontractor at least 35 percent of the receipts or accruals in such fiscal year, or of the aggregate receipts or accruals in such fiscal year and the preceding fiscal year, are not (without regard to this subsection and subsection (c) of this section) subject to this title; (C) an article is, with respect to any fiscal year, "identical in every material respect with a standard commercial article"
(i) such article is of the same kind and manufactured of the same or substitute materials (without necessarily being of identical specifications) as a standard commercial article from sales of which the contractor or subcontractor has receipts or accruals in such fiscal year,
(ii) such article is sold at a price which is reasonably comparable with the price of such standard commercial article, and
(iii) at least 35 percent of the aggregate receipts or accruals in such fiscal year by the contractor or subcontractor from sales of such article and sales of such standard commercial article are not (without regard to this subsection and subsection (c) of this section) subject
to this title; (D) the term “service” means any processing or other operation performed by chemical, electrical, physical, or mechanical methods directly on materials owned by another person;
(E) the term "standard commercial service" means, with respect to any fiscal year, a service from the performance of which by the contractor or subcontractor at least 35 percent of the receipts or accruals in such fiscal year are not (without regard to this subsection) subject to this title;
(F) a service is, with respect to any fiscal year,“ reasonably comparable with a standard commercial service" only if
(i) such service is of the same or a similar kind, performed with the same or similar materials, and has the same or a similar result, without necessarily involving identical operations, as a standard commercial service from the performance of which the contractor or subcontractor has receipts or accruals in such fiscal year, and
(ii) at least 35 percent of the aggregate receipts or accruals in such fiscal year by the contractor or subcontractor from the performance of such service and such standard commercial service are not (without regard to
this subsection) subject to this title; and (G) the term "standard commercial class of articles" means, with respect to any fiscal year, two or more articles with respect to which the following conditions are met
(i) at least one of such articles either is customarily maintained in stock by the contractor or subcontractor or is offered for sale in accordance with a price schedule regularly maintained by the contractor or subcontractor,
(ii) all of such articles are of the same kind and manufactured of the same, or substitute materials (without necessarily being of identical specifications),
(iii) all of such articles are sold at reasonably comparable prices, and
(iv) at least 35 percent of the aggregate receipts or accruals in the fiscal year by the contractor or subcontractor from sales of all of such articles are not (without regard to this subsection and subsection (c) of this section) subject to this title.
ITAIVER OF EXEMPTION.-Any contractor or subcontractor may waive the exemption provided in paragraphs (1) and (2) with respect to his receipts or accruals in any fiscal year from sales of any article or service by including a statement to such effect in the financial statement filed by him for such fiscal year pursuant to section 105(e)(1), without necessarily waiving such exemption with respect to receipts or accruals in such fiscal year from sales of any other article or service. A waiver, if made, shall be unconditional, and no waiver may be made without the permission of the Board for any receipts or accruals with respect to which the contractor or subcontractor has previously filed an application under paragraph (3).
(6) NONAPPLICABILITY DURING NATIONAL EMERGENCIES. -Paragraphs (1) and (2) shall not apply to amounts received or accrued 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.
Compensation of Chairman and other members of Board was increased to $20,500 and $20,000, respectively, by Pub. Law 854, 84th Cong., approved July 31, 1956; to $26,000 by I'itle III, § 303(e), Pub. Law 88-426, 88th Cong., approved August 14, 1964; to $28,000 by $ 215(c), Pub. Law 90-206, 90th Cong., approved December 16, 1967.
28 First sentence of section 107(c) was added by Pub. Law 86-89, 86th Cong., approved July 13, 1959, as amended by Pub. Law 88-426, 88th Cong., approved August 14, 1964, which repealed that part of such sentence reading: ", and shall receive compensation at the rate of $19,000 per annum”. Matter in italics in second sentence was substituted by Pub. Law 870, 84th Cong., approved August 1, 1956, for“(but without regard to the civil-service laws and regulations)”.
24 Matter in italics in section 107(e) was added by Pub. Law 86– 507, 86th Cong., approved June 11, 1960.
By Pub. Law 87-520, 87th Cong., approved July 3, 1962, the word "finally” in second sentence of section 108 was made inapplicable with respect to petitions for redetermination filed with the Tax Court after July 3, 1962; and matter in italics was added effective only with respect to petitions filed after such date.
26 Matter in italics in next to last sentence of section 108 was added by Pub. Law 870, 84th Cong., approved August 1, 1956. The amendment was effective as of the date of the enactment of the Renegotiation Act of 1951.
27 Section 108A was added by Pub. Law 870, 84th Cong., approved August 1, 1956, as amended by Pub. Law 87-520, 87th Cong., approved July 3, 1962. The amendment added subsections (a) and (b) and designated the former section 108A as subsection (c).
28 Section 113 was amended by Pub. Law 870, 84th Cong., approved August 1, 1956, by striking out “during the period (or a part thereof) beginning July 1, 1950, and ending December 31, 1953," before from acting"
29 Section 114 was added by Pub. Law 870, 84th Cong., approved August 1, 1956. 36 Subsec. (a) (4) (D) of the Renegotiation Act was
was further amended by Public Law 183, 82d Cong., approved October 20, 1951, which changed “June 30, 1951” to “October 31, 1951," and by Public Law 576, 82d Cong., approved July 17, 1952, which changed "October 31, 1951" to "December 31, 1952."
31 Matter in italics in section 201(h) was added by Pub. Law 764, 83d Cong., approved September 1, 1954.
ntractor nd 2)
r from o such I rear such Vear
cerning prospective employment, has financial part, and all amendments thereto, at the time of interest
his entrance on duty. At least semi-annually, Shall be fined not more than $10,000, or imprisoned
the regulations in this part shall be brought to not more than 2 years, or both. (b) Subsection (a) bereof shall not apply (1) if the
the attention of all employees and special Govofficer or employee first advises the Government official ernment employees, each of whom shall be reresponsible for appointment to his position of the na quired at each such time to execute a statement ture and circumstances of the judicial or other proceed
in form as follows:
I have read and I understand the provisions of Part arrest, or other particular matter and makes full dis 1450 of the Renegotiation Board Regulations, and I closure of the financial interest and receives in advance agree to abide thereby as long as I remain an employee a written determination made by such official that the
of The Renegotiation Board. interest is not so substantial as to be deemed likely to It shall be the responsibility of the Director, affect the integrity of the services which the Govern
Office of Administration, to carry out the proment may expect from such officer or employee, or (2) if, by general rule or regulation published in the
visions of this section. FEDERAL REGISTER, the financial interest has been ex 1450.735–7 Financial interests exempted empted from the requirements of clause (1) hereof as from statutory prohibition.-Pursuant to the being too remote or too inconsequential to affect the
provisions of subsection (b) of 18 U.S.C. 208, integrity of Government officers' or employees' services.
the Board has determined that the following fiAdded Pub. L. 87-849, 8 1(a), October 23, 1962, 76 Stat. 1124.
nancial interests are too remote or too incon1450.735–5 Disciplinary and other reme
sequential to affect the integrity of the services dial action.—(a) Any violation of the regula
of its employees, and therefore has exempted tions in this part, by an employee or special
such interests from the requirement of this Government employee, may be cause for dis
part: Investments in widely held diversified
mutual funds (i.e., open-end management inciplinary action, which may be in addition to
vestment companies as defined by section 5 of the any penalty prescribed by law. (b) When, after consideration of the ex
Investment Company Act of 1940, 15 U.S.C.
80a-5) in which the employee does not serve as planation of the employee or special Government employee provided by $ 1450.735-4(b), the
a director, officer, partner, or adviser. Board decides that remedial action is required, SUBPART B-ETHICAL AND OTHER the Board will take immediate action to end the
CONDUCT AND RESPONSIBILITIES conflicts or appearance of conflicts of interest.
OF EMPLOYEES (c) Remedial action under paragraph (a)
1450.735-21 Proscribed actions.-An emor (b) of this section may include, but is not limited to:
ployee shal! avoid any action, whether or not (1) Changes in assigned duties;
specifically prohibited by this subpart, which (2) Divestment by the employee or special
might result in, or create the appearance of: Government employee of his conflicting interest;
(a) Using public office for private gain; (3) Disqualification for a particular assign
(b) Giving preferential treatment to any ment; or
person; (4) Disciplinary action.
(c) Impeding Government efficiency or econ
omy; Remedial action, whether disciplinary or other
(d) Losing complete independence or imwise, will be effected in accordance with any ap
partiality; plicable laws, Executive orders, and regulations.
(e) Making a Government decision outside 1450.735–6 Notice to employees.-Within official channels; or twenty (20) days after the effective date of the
(f) Affecting adversely the confidence of the regulations in this part, or of any amendment
public in the integrity of the Board or the Govthereto, each employee and special Government
ernment. employee shall be provided with a copy of this
1450.735-22 Gifts, entertainment, and fapart, or of such amendment. Each new employee vors.-(a) Except as provided in paragraph or special Government employee appointed (b) of this section, an employee shall not solicit, thereafter shall be provided with a copy of this or accept, directly or indirectly, any gift, gra
linment, loan, or any other thing of monetary value, from a person who:
(1) Has, or is seeking to obtain, contractual or other business or financial relations with the Board;
(2) Conducts operations or activities that are within the scope of the Renegotiation Act of 1951, as amended; or
(3) Has interests that may be substantially affected by the performance or nonperformance of the employee's official duty.
(b) There are excepted from the prohibitions contained in paragraph (a) of this section:
(1) Transactions governed by obvious family or personal relationships (such as those between the parents, children, or spouse of the employee and the employee) when the circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors;
(2) Acceptance of food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or on an inspection tour where an employee may properly be in attendance;
(3) Acceptance of loans from banks or other finance institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans; and
(4) Acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value.
(c) An employee shall not solicit a contribution from another employee for a gift to an official superior, make a donation as a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, nothing herein contained shall prohibit a voluntary gift of nominal value or donation in a nominal amount, made on a special occasion such as marriage, illness, or retirement.
(d) An employee shall not accept a gift, present, decoration, or other thing from a foreign government unless authorized by Congress as provided by the Constitution and in Public Law 89-673, 80 Stat. 952 (22 U.S.C. 2621-2626).
(e) Neither this section nor $ 1450.735-23 precludes an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary
subsistence as is compatible with this part for which no Government payment or reimbursement is made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under Board orders when reimbursement is proscribed by Decision B-128527 of the Comptroller General dated March 7, 1967.
1450.735–23 Outside employment and other activity.-(a) An employee shall not engage in, or conduct negotiations or arrangements for, outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his employment with the Board. Incompatible activities include but are not limited to:
(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, conflicts of interest; or
(2) Outside employment which tends to impair his mental or physical capacity to perform his duties and responsibilities as an employee in an acceptable manner.
(b) An employee shall not receive any salary
(c) Employees are encouraged to engage in
section 401(a) of the Executive order, shall not allow the use of, official information obtained
one acknowledged by the employee, or reduced to (d) Revoked.
judgment by a court, or imposed by law, such as (e) This section does not preclude an em
Federal, State, or local taxes; and “in a proper ployee from:
and timely manner" means in a manner which (1) Reserved.
the Board, if consulted, determines does not, (2) Participation in the activities of national under the circumstances, reflect adversely on or state political parties not proscribed by law. the Government as his employer. In the event
(3) Participation in the affairs of or accept of dispute between an employee and an alleged ance of an award for a meritorious public con creditor, this section does not require the Board tribution or achievement given by a charitable, to determine the validity or amount of the religious, professional, social, fraternal, non disputed debt. profit educational and recreational public serv 1450.735-28 Gambling, betting, and lot. ice, or civic organization.
teries.-An employee shall not participate, 1450.735-24 Financial interests.(a) An while on Government owned or leased property employee shall not:
or while on duty for the Government, in any (1) Have a direct or indirect financial in gambling activity including the operation of a terest that conflicts substantially, or appears to gambling device, in conducting a lottery or pool, conflict substantially, with his duties and re in a game for money or property, or in selling sponsibilities as an employee; or
or purchasing a numbers slip or ticket. How(2) Engage in, directly or indirectly, a finan ever, this section does not preclude activities cial transaction as a result of, or primarily rely
under section 3 of Executive Order 10927 (reing on, information obtained through his lating to fund raising) or Board-approved employment with the Board.
activities of a similar nature. (b) This section does not preclude an em
1450.735-29 General conduct; conduct ployee from having a financial interest or en
prejudicial to the Government.--(a) Every gaging in financial transactions to the same employee shall conduct himself in such a manextent as a private citizen not employed by the
ner that the work of the Board is effectively Government so long as it is not prohibited by accomplished, observing at all times the requirelaw, the Executive order, Part 735 of the Civil ments of courtesy, consideration and promptService Regulations (5 CFR, Part 735), or this ness in dealing with representatives of other part.
Departments and Agencies, contractor repre1450.735-25 Use of Government prop sentatives, and the general public. erty.--An employee shall not directly or in (b) An employee shall not engage in crimi. directly use, or allow the use of, Government nal, infamous, dishonest, immoral or notoriously property of any kind, including property leased
disgraceful conduct, or other conduct prejudito the Government, for other than officially ap
cial to the Government. proved activities. An employee has a positive
1450.735–30 Miscellaneous statutory produty to protect and conserve Government prop visions. In addition to the regulations in this erty, including equipment, supplies, and other part and Part 1480 of this subchapter, each emproperty entrusted or issued to him.
ployee shall acquaint himself with each statute 1450.735–26 Misuse of information. For that relates to his ethical and other conduct as the purpose of furthering a private interest, an an employee of the Board and of the Governemployee shall not, except as provided in ment. The attention of employees is directed to $ 1450.735-23 (c), directly or indirectly use, or the following statutory provisions: