Page:United States Statutes at Large Volume 56 Part 1.djvu/1010

 PUBLIC LAWS-CH. 619-OCT. 21, 1942 Sixth Supplemental National Defense Ap- propriation Act, 1942, amendments. Ante, p. 245. "Department." "Secretary." "Renegotiate" and " ren egotiation. " "Excessive profits." "Subcontract." " Article. " "Contract" and "contractor." Contracts in excess of $100,000. Provisions to be inserted. Ante, p. 245. Post, p. 985. TITLE VIII-RENEGOTIATION OF WAR CONTRACTS SEC. 801. RENEGOTIATION OF WAR CONTRACTS. (a) Subsections (a), (b), and (c) of section 403 of the Sixth Sup- plemental National Defense Appropriation Act (Public 528, 77th Cong., 2d Sess.), are amended to read as follows: "SEC. 403. (a) For the purposes of this section- "(1) The term 'Department' means the War Department, the Navy Department, the Treasury Department, and the Maritime Commission, respectively. "(2) In the case of the Maritime Commission, the term 'Secre- tary' means the Chairman of such Commission. "(3) The terms 'renegotiate' and 'renegotiation' include the refixing by the Secretary of the Department of the contract price. "(4) The term 'excessive profits' means any amount of a con- tract or subcontract price which is found as a result of renego- tiation to represent excessive profits. "(5) The term 'subcontract' means any purchase order or agreement to perform all or any part of the work, or to make or furnish any article, required for the performance of another contract or subcontract. The term 'article' includes any material, part, assembly, machinery, equipment, or other personal property. "For the purposes of subsections (d) and (e) of this section, the term 'contract' includes a subcontract and the term 'con- tractor' includes a subcontractor. "(b) Subject to subsection (i), the Secretary of each Department is authorized and directed to insert in any contract for an amount in excess of $100,000 hereafter made by such Department- "(1) a provision for the renegotiation of the contract price at a period or periods when, in the judgment of the Secretary, the profits can be determined with reasonable certainty; "(2) a provision for the retention by the United States from amounts otherwise due the contractor, or for the repayment by him to the United States, if paid to him, of any excessive profits not eliminated through reductions in the contract price, or other- wise, as the Secretary may direct; "(3) a provision requiring the contractor to insert in each sub- contract for an amount in excess of $100,000 made by him under such contract (i) a provision for the renegotiation by such Secre- tary and the subcontractor of the contract price of the subcon- tract at a period or periods when, in the judgment of the Secretary, the profits can be determined with reasonable certainty, (ii) a provision for the retention by the contractor for the United States of the amount of any reduction in the contract price of any subcontract pursuant to its renegotiation hereunder, or for the repayment by the subcontractor to the United States of any excessive profits from such subcontract paid to him and not eliminated through reductions in the contract price or otherwise, . as the Secretary may direct, and (iii) a provision for relieving the contractor from any liability to the subcontractor on account of any amount so retained by the contractor or repaid by the subcontractor to the United States, and (iv) in the discretion of the Secretary, a provision requiring any subcontractor to insert in any subcontract made by him under such subcontract, pro- visions corresponding to those of subparagraphs (3) and (4) of this subsection (b) ; and 982 [56 STAT.

�