5. Treasury Department-Price Adjustment Board.

6. War Shipping Administration-Price Adjustment Board.

to the War Contracts Price Adjustment Board through the Assignments and Statistics Branch of the War Department Price Adjustment Board. The Report will show by fiscal years the cumulative total of recoveries pursuant to legally effective agreements and the cumulative total of recoveries pursuant to legally effective issued unilateral determinations and will be signed by a member of the Departmental Board submitting the Report.

[RR 751.10]

§ 1607.752 Statement to be furnished contractor. [RR 752]

§ 1607.752-1 General instructions. (a) Subsection (c) (1) of the Renegotiation Act of 1943 requires that whenever the War Contracts Board makes a determination by agreement or order, there must be furnished to the contractor, at his request, a statement showing the determination of excessive profits, the facts used as a basis therefor and the reasons - for such determination.

(b) The manner in which and the time at which the statement will be given to the contractor are described in § 1605.520 and following.

(c) The statement cannot be used in The Tax Court of the United States as proof of the facts or conclusions stated therein.

(d) The statement is divided into four principal parts:

(1) Designation of the contractor and the fiscal year under review.

(2) Determination of excessive profits. (3) Summary of the relevant facts upon which the determination is based. (4) Reasons for the determination. [RR 752.1]

§ 1607.752-2 Form of statement and specific instructions as to its preparation (statutory).

(1) Designation of the Contractor and Fiscal Period

To:

(Contractor's name and address) Fiscal year

In accordance with the provisions of subsection (c) (1) of the Renegotiation Act, you are hereby furnished a statement showing, for your fiscal year above set forth, the determination of excessive profits for said fiscal year and the facts and reasons upon which the determination is based.

If the determination is by order other than an order of the War Contracts Price Adjustment Board, the following clause will be inserted at this point:

"This statement is final only in the event that the determination by order to which it relates is final."

(2) Determination of Excessive Profits. Pursuant to the provisions of the Renegotiation Act, it has been determined by

(order)

(agreement)

dated---
that, of the profits
received by or accrued to you during said
fiscal year under contracts or subcontracts
subject to renegotiation, the amount of
constitutes

profits which should be eliminated.
(3) Summary of the Relevant Facts.
(a) Financial Comparisons.

(1) There shall be made part of this statement comparative financial statements of the contractor which may be in the form of exhibits attached to the statement. If exhibits are used, they should be described and referred to in this part of the statement.

(11) Comparative balance sheets prepared from those furnished by the contractor, as of the end of the fiscal year 1936 and of each fiscal year thereafter up to and including the fiscal year under review, shall be included.

(iii) Comparative income statements for the same fiscal periods shall be included.

(iv) The statements shall be supplemented by such statistical data related to the fiscal periods as may be deemed pertinent to the renegotiation.

(v) Any disallowance (or additional allowance) as compared with costs shown on the contractor's books shall be indicated.

(vi) The financial comparison referred to in subparagraphs (ii) and (iii) above may be omitted in the discretion of the Department giving a statement furnished after a determination by agreement. In such case, the statement should refer to Exhibit A to the renegotiation agreement (see § 1607.741-3) and also to the contractors annual earnings before taxes for the fiscal year 1936 and for each fiscal year thereafter up to and including the fiscal year under review, to the extent that such information is available and pertinent. When the statement is furnished after a determination by agreement, documentary information furnished by the contractor and properly identified, relating to the financial comparison referred to in subparagraphs (ii) and (iii) above may be incorporated by reference.

(vii) In the case of a statement furnished after a determination by agreement or order, the financial comparison referred to in subparagraphs (ii) and (iii) above may be omitted to the extent information therefor is not made available to the renegotiating officials by the contractor.

(b) Other Facts Related to the Determination.

The statutory factors required to be taken into consideration by subsection (a) (4) (A) of the Renegotiation Act of 1943 must receive consideration and the basic facts related thereto set forth, whether favorable or unfavorable to the contractor. The basic facts will be those resulting from consideration of the data submitted or assembled for the purpose of the renegotiation. Any other facts considered and pertinent to the consideration of the determination shall also be set forth.

(4) Reasons for the Determination.

A statement shall be made of the reasons for the determination in the light of all of the facts and factors referred to in the foregoing portions of the statement, indicating generally the relative significance and importance of such facts and factors. Return on net worth shall be computed before deductions for Federal income taxes and be based on that portion of the net worth determined to have been used in connection with the performance of renegotiable contracts. If this is not practicable, reference to net worth shall be omitted. Such matters as (a) profits on non-renegotiable business and (b) profits after Federal taxes do not constitute factors or reasons to be taken into consideration in the renegotiation proceeding or included in the statement to be furnished to the contractor, although such figures are frequently included in the financial data submitted by the contractor and attached as exhibits to the statement.

(1) Designation of the Contractor and Purpose of Statement

Το

(Contractor's name and address)

Fiscal year

You are hereby furnished with a statement of the facts and reasons upon which the opinion of (name of Board or Section) as to the amount of excessive profits for your fiscal year above set forth was based. Such statement is furnished for the purpose of assisting you in determining whether or not you wish to enter into an agreement providing for the elimination of such excessive profits. It is not a statutory statement as provided in subsection (c) (1) of the Renegotiation Act.

(2) Statement of Opinion of Excessive Profits.

In the opinion of (name of Board or Section) the amount of excessive profits received or accrued by you during such fiscal year under contracts or subcontracts subject to renegotiation is $..

(3) Summary of the Relevant Facts.

The instructions of paragraph (3) of the form in § 1607.752-2 applicable to a statement after a determination by agreement apply also to a statement where a statutory determination has not yet been made. In such case, Exhibit A to the renegotiation agreement may be referred to as a preliminary draft and submitted to the contractor in such form (see paragraph (3) (vi) of the form in § 1607.752-2).

(4) Reasons for the Determination.
of
(4)

See paragraph

§ 1607.752-2.

[RR 752.3]

the

form in

Renegotiable:

1942 renegotiable fixed price before adj. 1942 renegotiable fixed price after adj. 1942 total after renegotiation.

Net worth, as of Beg. ( ) End. () 1936. Price reductions policies and comparisons

1937, $.

1938,

1939, $. Expense factors

1940, $.

1941,

Cost, efficiency, production factors [RR 753]

Special factors

Brig. Gen. Albert J. Browning, Chairman (War Department), Room 5D675, The Pentagon, Washington 25, D. C., Tel. Republic 6700, Ext. 3119.

Mr. W. John Kenney, Vice Chairman (Navy Department), Room 102, Premier Building, 718 18th Street, N. W., Washington 25, D. C., Tel. Republic 7400, Ext. 5169 or 62729.

Mr. Kenneth F. Clark (Maritime Commission), Room 512, Electrical Workers Building, 1200 15th Street, N. W., Washington 5, D. C., Tel. Executive 3340, Ext. 1047.

Captain H. C. Maull, Jr. (Treasury Department), 5304 Procurement Building, 7th and D Streets, S. W., Washington 25, D. C., Tel. District 5700, Ext. 2105.

Mr. Charles T. Fisher, Jr. (Reconstruction Finance Corporation), Room 1167 Lafayette Building, 811 Vermont Avenue, N. W., Washington 25, D. C., Tel. Executive 3111, Ext. 8 or 48.

Mr. Carman G. Blough (War Production Board), Department 1400, 4th and Independence Avenue, S. W., Washington 25, D. C., Tel. Republic 7500, Ext. 71783.

tive Officer, Room 3D 573, The Pentagon, Washington 25, D. C., Tel. Republic 6700, Ext. 5672.

Navy Price Adjustment Board, attention: Mr. W. John Kenney, Chairman, 718 18th Street, N. W., Washington 25, D. C., Tel. Republic 7400, Ext. 5169 or 62729.

Office of the General Counsel, Navy Department, Services and Sales Renegotiation Section, Washington 25, D. C., Tel. Republic 7400, Ext. 61468.

Treasury Department Price Adjustment Board, attention: Captain H. C. Maull, Jr., Chairman, 5304 Procurement Building, 7th and D Streets, S. W., Washington 25, D. C., Tel. District 5700, Ext. 2105.

Maritime Commission Price Adjustment Board, attention: Mr. A. G. Rydstrom, Room 512, Electrical Workers Building, 1200 15th Street, N. W., Washington 5, D. C., Tel. Executive 3340, Ext. 606 or 607.

War Shipping Administration Price Adjustment Board, attention: Mr. James L. Murphy, Chairman, 39 Broadway, New York 6, New York, Tel. Whitehall 3-8000.

Reconstruction Finance Corporation Price Adjustment Board, attention: Mr. Charles T. Fisher, Jr., Chairman, Lafayette Building, 811 Vermont Avenue, N. W., Washington 25, D. C., Tel. Executive 3111, Ext. 8 or 48. [RR 792]

§ 1607.793 War Department Price Adjustment Sections. [RR 793]

§ 1607.793-1 Headquarters.

Price Adjustment Branch, Control Office, AC/AS M. & S., Army Air Forces, Room 5C 964, The Pentagon, Washington 25, D. C., Tel. Republic 6700, Exts. 72209, 4420, 4577.

Price Adjustment Office, Materiel Command, Army Air Forces, Wright Field, Dayton, Ohio, Tel. Kenmore 7111, Exts. 22135, 23292, 25225.

The Chief of Chemical Warfare, attention: Lt. Col. Robert M. Estes, Purchase Policies Branch, Baltimore Sub-Office, OC CWS, 200 West Baltimore Street, Baltimore 1, Maryland, Tel. Lexington 0710.

The Chief of Engineers, attention: Lt. Col. Carl M. Sciple, Price Adjustment Section, Room 5160, New War Department Building, Washington 25, D. C., Tel. Republic 6700, Ext. 76225.

The Chief of Ordnance, attention: Lt. Col. John M. Marble, Price Adjustment Branch, Room 5D 400, The Pentagon, Washington 25, D. C., Tel, Republic 6700, Ext. 2283.

The Quartermaster General, attention: Col. H. F. Colt, Price Adjustment Section, Room 2327, Tempo. B., 2nd and Q Streets, S. W., Washington 25, D. C., Tel. Republic 6700, Ext. 3744 or 6485.

The Chief Signal Officer, attention: Mr. Wilfred Goodwyn, Price Adjustment Section, Room 2C 285, The Pentagon, Washington 25, D. C., Tel. Republic 6700, Ext. 73278.

The Surgeon General, attention: Lt. Col. Lee I. Park, Renegotiation Division, Room

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