Page:United States Statutes at Large Volume 49 Part 1.djvu/2041

 1996 74TH CONGRESS. SESS. II. CH. 858 . JUNE 29, 1936. tai Conditions and hmi- ascertained, determined, controlled, granted, and paid, subject to all the applicable conditions and limitations of this title and under such further conditions and limitations as may be prescribed in the rules Ante, p. 198 6. an d regula tions t he Commi ssion h as adopt ed as p rovided in sect ion Financial aid Ba- 201 (c) of this Act ; but the financial aid authorized by this subsection tended only in excep- tional cases. shall be extended to reconstruction or reconditioning only in excep- tional cases and after a thorough study and a formal determination by the commission that the proposed reconstruction or reconditioning is co nsist ent with the purpo ses and p olic y of this Act. Bi ds and contracts. SEC. 502. (a) If the Secretary of the Navy certifies his approval under se ction 5 01 (b) o f this Act, and the Co mmission approv es the application, it may secure, on behalf of the applicant, bids for the construction of the proposed vessel according to the approved plans and s pecif icat ions. If the bid of the shipbuilder who is the lowest responsible bidder is determined by the Commission to be fair and reasonable, the Commission may approve such bid, and if such approved bid is accepted by the applicant, the Commission is author- ized to enter into a contract with the successful bidder for the con- struction, outfitting, and equipment of the proposed vessel, and for the payment by the Commission to the shipbuilder, on terms to be agreed upon in the contract, the cost of the vessel, out of the construc- tion fund hereinbefore referred to, or out of other available funds. can t Cont ract for of itha ppli- Concurrently with entering into such contract with the shipbuilder, vessel when completed. the Commission is authorized to enter into a contract with the appli- cant for the purchase by him of such vessel upon its completion, at a price corresponding to the estimated cost, as determined by the Com- mission pursuant to the provisions of this Act, of building such vessel in a foreign shipyard. Construction-differ- (b) The amount of the reduction in selling price which is herein ential subsidy. " termed the "construction-differential subsidy" may equal, but not exceed, the excess of the bid of the shipbuilder constructing the pro- posed vessel (excluding the cost of any features incorporated in the vessel for national-defense uses, which shall be paid by the Commis- sion in addition to the subsidy), over the fair and reasonable estimate of cost, as determined by the Commission, of the construction of the proposed vessel if it were constructed under like plans and specifica- tions (excluding national-defense features as above provided) ina principal foreign shipbuilding center which is availed of by the principal foreign competitors in the service in which the vessel is to be operated, and which is deemed by the Commission to furnish a fair and rep resenta tive exa mple fo r the de termina tion of the est i- mated cost of construction in foreign countries of vessels of the type 1 'ro vi 80. proposed to be constructed : Provided, That the construction differ- Limitation. ential approved by the Commission shall not exceed 331/ 3 per centum of the construction cost of the vessel paid by the Commission (exclud- ing the cost of national-defense features as above provided), except in cases where the Commission possesses conclusive evidence that the actual differential is greater than that percentage, in which cases the Commission may approve an allowance not to exceed 50 per centum Ante, p. 1985. of s uch cost, upon the affi rmative vote of four m embers, except as otherwise provided in subsection 201 (a). Amou nt of cash pa y- (c) In such contract between the applicant and the Commission, wont required. the applicant shall be required to pay the Commission a sum equal to 25 per centum of the construction cost of the vessel paid by the Com- m ission (excludi ng cost of nati onal-de fense fe atures as above pro- vided) such cash payment to be made at the time and in the same proportion as provided for the payment of the construction cost in the Paym ent of balanc e. contract between the shipbuilder and the Commission ance of such purchase price shall be paid by the applicant, within
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