Page:United States Statutes at Large Volume 58 Part 1.djvu/674

 654 Settlement of ter- mination claims by ageement wherever Interest on amounts due and unpaid under prime contracts. Exceptions. P, p. 6.m. Subcontractors' claims. Amendment of contracts. Settlements with subcontractors. Limitation or omis- amn of review. Settlements without review. AU, p..62. PUBLIC LAWS-CH. 358 -JULY 1, 1944 exceed the total contract price reduced by the amount of payments otherwise made or to be made under the contract. (e) In order to carry out the objectives of this Act, termination claims shall be settled by agreement to the maximum extent feasible and the methods and standards established under subsection (b) of this section shall be designed to facilitate such settlements. To the extent that he deems it practicable to do so without impeding expedi- tious settlements, the Director shall require the contracting agencies to take into account the factors enumerated in subsection (d) above in establishing methods and standards for determining fair compen- sation in the settlement of termination claims by agreement. - (f) Each contracting agency shall allow and pay interest on the amount due and unpaid from time to time on any termination claim underia prime contract at the rate:of :21/ per centum per annum for the period beginning thirty days after the date fixed for termination and ending with the date of final payment, except that (1) if the prime contractor unreasonably delays the settlement of his claim, interest shall not accrue for the period of such delay, (2) ii interest for the period after termination on any advance payment or loan, made or guaranteed by the Government,has been waived for the benefit of the contractor, the amount of the interest so waived allocable to the termi- nated contract or the terminated part of the contract shall be deducted from the interest otherwise payable hereunder, and (3) if after deliv- ery of findings by a contracting agency, the contractor appeals or sues as provided m section 13, interest shall not accrue after the thirtieth day following the delivery of the findings on any amount allowed by snuch findings, unless such amount is increased upon such appeal or suit. In approving, ratifying, authorizing, or making termination settlements with subcontractors, each contracting agency shall allow interest on the termination claim of the subcontractor on the same basis and subject to the same conditions as are applicable to a prime contractor. (g) Where any war contract does not provide for or provides against such fair compensation for its termination, the contracting agency, either before or after its termination, shall amend such war contract by agreement with the war contractor, or shall authorize, approve, or ratify an amendment of such war contract by the parties thereto, to provide for such fair compensation. SEc. 7. (a) Where, in connection with the settlement of any termina- tion claim by a contracting agency, any war contractor makes settle- ments of the termination claims of his subcontractors, the contracting agency shall limit or omit its review of such settlements with subcon- tractors to the maximum extent compatible with the public interest. Any contracting agency (1) may approve, ratify, or authorize such settlements with subcontractors upon such evidence, terms, and condi- tions as it deems proper; (2) shall vary the scope and intensity of its review of such settlements according to the reliability of the war con- tractor, the size, number, and complexity of such claims, and other relevant factors; and (3) shall authorize war contractors to make such settlements with subcontractors without review by the contracting agency, whenever the reliability of the war contractor, the amount or nature of the claims, or other reasons appear to the contracting agency to justify such action. Any such settlement of a subcontract approved, ratified, or authorized by a contracting agency shall be final and con- clusive as to the amount due to the same extent as a settlement under subsection (c) of section 6 of this Act, and no war contractor shall be liable to the United States on account of any amounts paid thereon except for his own fraud. .. [58 STAT.

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