Page:United States Statutes at Large Volume 56 Part 1.djvu/274

 PUBLIC LAWS-CH. 247-APR. 28, 1942 amounts recovered under this subsection shall be covered into the Applicability. Treasury as miscellaneous receipts. This subsection shall be appli- cable to all contracts and subcontracts hereafter made and to all contracts and subcontracts heretofore made, whether or not such contracts or subcontracts contain a renegotiation or recapture clause, provided that final payment pursuant to such contract or subcontract has not been made prior to the date of enactment of this Act. Disallowances in (d) In renegotiating a contract price or determining excessive renegotiation. profits for the purposes of this section, the Secretaries of the respec- tive Departments shall not make any allowance for any salaries, bonuses, or other compensation paid by a contractor to its officers or employees in excess of a reasonable amount, nor shall they make allowance for any excessive reserves set up by the contractor or for any costs incurred by the contractor which are excessive and unrea- Powers conferred. sonable. For the purpose of ascertaining whether such unreasonable compensation has been or is being paid, or whether such excessive reserves have been or are being set up, or whether any excessive and unreasonable costs have been or are being incurred, each such Secre- tary shall have the same powers with respect to any such contractor that an agency designated by the President to exercise the powers Ante, p.8. conferred by title XIII of the Second War Powers Act, 1942, has Determination of with respect to any contractor to whom such title is applicable. In profits, the interest of economy and the avoidance of duplication of inspec- tion and audit, the services of the Bureau of Internal Revenue shall, upon request of each such Secretary and the approval of the Secre- tary of the Treasury, be made available to the extent determined by the Secretary of the Treasury for the purposes of making examina- tions and determinations with respect to profits under this section. contraretos from (e) In addition to the powers conferred by existing law, the Secretary of each Department shall have the right to demand of any contractor who holds contracts with respect to which the provi- sions of this section are applicable in an aggregate amount in excess of $100,000, statements of actual costs of production and such other financial statements, at such times and in such form and detail, as Penalty. such Secretary may require. Any person who willfully fails or refuses to furnish any statement required of him under this sub- section, or who knowingly furnishes any such statement containing information which is false or misleading in any material respect, shall, upon conviction thereof, be punished by a fine of not more than $10,000 or imprisonment for not more than two years, or both. The powers conferred by this subsection shall be exercised in the case of any contractor by the Secretary of the Department holding the largest amount of such contracts with such contractor, or by such Secretary as may be mutually agreed to by the Secretaries concerned. Dhelegation of au- (f) The authority and discretion herein conferred upon the Secre- thority. Poat, p. 9. tary of each Department, in accordance with regulations prescribed by the President for the protection of the interests of the Govern- ment, may be delegated, in whole or in part, by him to such individ- uals or agencies in such Department as he may designate, and he may authorize such individuals or agencies to make further dele- gations of such authority and discretion. Separability. (g) If any provision of this section or the application thereof to any person or circumstance is held invalid, the remainder of the section and the application of such provision to other persons or circumstances shall not be affected thereby. Duration. (h) This section shall remain in force during the continuance of the present war and for three years after the termination of the war, but no court proceedings brought under this section shall abate by reason of the termination of the provisions of this section. [56 STAT.

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