Sec.

1 Creation and authority.

2 Purpose.

3 Organization.

4 Activities.

5 Official copies.

6 Copies of the Renegotiation Board regulations.

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 3, 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 and the previous renegotiation statutes is to eliminate excessive profits derived by contractors and subcontractors in connection with the national defense program.

3 Organization.-(a) 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 Secretaries of the Army, the Navy and the Air Force, subject to the approval of the Secretary of Defense, and the Administrator of General Services each recommend to the President for his consideration one person from civilian life to serve as a member of the Board. The President designates one member to serve as Chairman. The principal office of the Board is located in Temporary Building S, 6th Street and Jefferson Drive, SW., Washington, D. C.

Location

(1) Boston Regional Renegotiation Board, 140 Federal Street, Boston 10, Mass.

(2) Chicago Regional Renegotiation Board, 219 South Clark Street, Chicago 4, Ill.

(3) Detroit Regional Renegotiation Board, David Broderick Tower Building, 10 Witherell Street, Detroit 26, Mich.

(4) Los Angeles Regional Renegotiation Board, 5504 Hollywood Boulevard, Los Angeles 28, Calif. (5) New York Regional Renegotiation Board, 110 East 45th Street, New York 17, N. Y.

4 Activities.-(a) The Renegotiation Act of 1951 is applicable to contracts with the military departments and certain other agencies of the Government named in the act, and to related subcontracts. The act is also applicable to contracts with such other agencies of the Government exercising functions having a direct and immediate connection with the national defense as the President shall designate. Various additional agencies have been designated by the President in Executive Orders 10260, June 27, 1951 (16 F. R. 6271); 10294, September 28, 1951 (16 F. R. 9927); 10299, October 31, 1951 (16 F. R. 11135); 10367, June 30, 1952 (17 F. R. 5932); and 10567, September 29, 1954 (19 F. R. 6361).

(b) Every contractor is required to file an annual report with respect to its receipts or accruals from renegotiable prime contracts and subcontracts during its fiscal year. A contractor whose renegotiable sales are less than

the minimum amount prescribed in the Renegotiation Act of 1951 is required so to state and need not submit the detailed financial and other information otherwise required. Additional pertinent information is accumulated by the Board in the course of meetings with the contractor whose renegotiable sales exceed the statutory minimum. If 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. The order is reviewable in The Tax Court of the United States.

(c) Cases are normally assigned in the first instance to one of the regional boards, to which the Board has delegated authority to make determinations of excessive profits in cases involving a net profit on renegotiable business not in excess of $800,000 for a fiscal year and to make recommended determinations to the Board of excessive profits in cases exceeding that amount, for final determination by the Board.

(d) The administration of renegotiation agreements and orders under the Renegotiation Act of 1951 is carried out by the heads of the agencies whose contracts are subject to such act; the administration of renegotiation agreements and orders under the Renegotiation Act of 1948 has been delegated to the Secretary of Defense, who in turn has redelegated such function to the Secretaries of the Army, the Navy, and the Air Force; the administration of renegotiation agreements and orders under the Renegotiation Act has been delegated to the heads of the agencies whose contracts were subject to the act. (e) 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 disseminates renegotiation results and information to Government procurement personnel for use in reprocurement, forward pricing and price redetermination proceedings, as a means of avoiding excessive profits to contractors and excessive costs to the Government in the execution of the national defense program.

5 Official copies.-Official copies of the statutes referred to herein may be obtained from the Superintendent of Documents, U. S. Government Printing Office, Washington 25, D. C. Official copies of Executive Orders cited herein are set out in the Federal Register, which may also be procured from the Superintendent of Documents.

6 Copies of the Renegotiation Board Regulations.-The Renegotiation Board Regulations and current supplements thereto may be obtained from the Superintendent of Documents, U. S. Government Printing Office, Washington 25, D. C.

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

Sec.

1451.1

SCOPE OF REGULATIONS

Arrangement of regulations.

1451.2 Cross references.

AUTHORITY: Sections 1451.1 to 1451.32 issued under section 109, Pub. Law 9, 82d Cong.

SCOPE OF REGULATIONS

1451.1 Arrangement of regulations.-For purposes of the Code of Federal Regulations, the Renegotiation Board Regulations under the Renegotiation Act of 1951 have been assigned to Title 32, Chapter XIV, Subchapter B, comprising Parts 1450 to 1499, inclusive. The regulations in this subchapter are divided into parts, each one of which deals with a separate aspect of renegotiation; and each part is further subdivided into sections. The numbering of individual parts and sections is keyed to the numbering system of the Code of Federal

Regulations. The numbering is not necessarily consecutive and is designed to permit subsequent insertion of additional parts and sections. The first four digits of the number indicate the part number. The digit or digits following the decimal point indicate the number of the section within the part.

1451.2 Cross references.-Unless specifically stated otherwise, cross references in the regulations in this subchapter indicate parts or sections of the regulations in this subchapter.

1451.3 Citations.-The regulations in this subchapter shall be referred to as the Renegotiation Board Regulations, and any section may be cited as RBR followed by the section number. Thus, this section may be cited as RBR 1451.3.

1451.4 Applicability of regulations.-The applicability of the regulations in this subchapter shall be co-extensive with the applicability of Title I of the Renegotiation Act of 1951, and the regulations in this subchapter shall apply to all proceedings conducted under Title I of the act.

1451.5 Amendments and additions.-When amendments or additions to the regulations in this subchapter are adopted by the Board, such amendments or additions will become effective at once unless otherwise specified. The adoption of such amendments or additions will not affect the validity of any action theretofore taken in accordance with prior regulations.

DEFINITIONS

1451.11 "The 1951 act" and "the act."The terms "the 1951 act" and "the act" mean the Renegotiation Act of 1951, as amended or supplemented.

1451.12 "The 1948 act."-The term "the 1948 act" means the Renegotiation Act of 1948, as amended or supplemented.

1451.13 "Board."-The term "Board" means The Renegotiation Board created by section 107 (a) of the act.

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