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Organization and Functions of The

Renegotiation Board


(b) The Board maintains two regional 1 Creation and authority.

boards with authority to conduct renegotiation 2 Purpose. 3 Organization.

proceedings in cases assigned to them. Each 4 Activities.

of the regional boards is composed of a chair5 Official copies.

man and additional board members as ap6 Copies of the Renegotiation Board Regulations.

pointed by the Board. After the Board de1 Creation and authority.-The Renego

termines that a contractor should be assigned tiation Board was created by the Renegotiation

for renegotiation, the case is assigned to a reAct of 1951 (65 Stat. 7, 50 U.S.C. App. 1211)

gional board selected according to its proximity, as an independent establishment in the execu

its relative work load, and its experience and tive branch of the Government and was orga

special skills.

The locations of the regional nized on October 8, 1951 to administer such act.

boards are as follows: The Renegotiation Act of 1951 transferred to

Location The Renegotiation Board certain powers, functions and duties conferred upon the War Con

(1) Eastern Regional Renegotiation Board, 1634 Eye

Street NW., Washington, D.C. 20447. tracts Price Adjustment Board by the Re

(2) Western Regional Renegotiation Board, 300 North negotiation Act (58 Stat. 78, as amended; 50

Los Angeles Street, Los Angeles, Calif. 90012. U.S.C. App. 1191). In addition, the Secretary of Defense delegated to The Renegotiation 4 Activities.-- (a) The Renegotiation Act Board, effective January 20, 1952 (17 F.R. of 1951 is applicable to contracts with the mili736), all powers, functions and duties conferred tary departments and certain other agencies upon the Secretary of Defense by the Renegoti- of the Government named in the act, and to ation Act of 1948 (62 Stat. 259, as amended and related subcontracts. As originally enacted, extended; 50 U.S.C. App. 1193).

the act applied also to contracts with such 2 Purpose.— The objective of the Renego- other agencies of the Government exercising tiation Act of 1951 and the previous renegotia- functions having a direct and immediate contion statutes is to eliminate excessive profits nection with the national defense as the Presiderived by contractors and subcontractors in dent might designate. Various additional connection with the national defense program. agencies were designated by the President in

3 Organization.-(a) The Renegotiation Executive Orders 10260, June 27, 1951 (16 F.R. Board is composed of five members. Each is 6271); 10294, September 28, 1951 (16 F.R. appointed by the President by and with the ad- 9927); 10299, October 31, 1951 (16 F.R. vice and consent of the Senate. The Secretaries 11136); 10367, June 30, 1952 (17 F.R. 5932); of the Army, the Navy and the Air Force, sub- and 10567, September 29, 1954 (F.R. 6361). ject to the approval of the Secretary of Defense, (b) By amendment to the act effective Deand the Administrator of General Services each cember 31, 1956, all agencies so named or desrecommend to the President for his considera- ignated ceased to be “Departments" for the tion one person from civilian life to serve as a purposes of the act, except the Departments member of the Board. The President desig- of Defense, Army, Navy and Air Force, the nates one member to serve as Chairman. The Maritime Administration, the Federal Mariprincipal office of the Board is located at 1910 time Board, the General Services AdministraK Street NW., Washington, D.C. 20446. tion, and the Atomic Energy Commission. The

President was given the power, during a national emergency proclaimed by the President or declared by the Congress after the date of such amendment, to designate as a Department any other agency of the Government exercising functions having a direct and immediate connection with the national defense, any such designation ceasing to be in effect on the last day of the month during which such emergency is terminated. By amendment approved September 6, 1958, the National Aeronautics and Space Administration was added as a Department under the act. By amendment approved June 30, 1964, the Federal Aviation Agency was added as a Department under the act.

(c) For fiscal years ending on or before June 30, 1956, 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. For fiscal years ending after June 30, 1956, this report is required to be filed only by those contractors whose renegotiable sales exceed the minimum amount prescribed in the act, but it may be filed by any other contractor. The mandatory filing includes detailed financial and other information. Additional pertinent information is accumulated by the Board in the course of meetings with contractors whose renegotiable sales exceed the statutory mini

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.

(d) 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. (e) 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 are subject to the act.

(f) 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, D.C. 20402. 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 Regulations, Bulletins, Rulings, and Forms. The Renegotiation Board Regulations and current supplements thereto may be obtained from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. Renegotiation Bulletins' and Renegotiation Rulings may be obtained from the same source.

Forms and instructions for filing renegotiation reports may be obtained from the Board or a regional board or in person at any field office of the Department of Commerce.

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


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