(Form SPRA-O in the case of Departments, see §§ 1607.751-1 and 1607.751-2 of this chapter, and Form SPRA-I in the case of Services, see §§ 1607.751-3 and 1607.751-4 of this chapter.) On the basis of the information supplied in the Progress Reports of the several Departments, the Assignments and Statistics Branch will prepare Status of Renegotiation Reports (Form SPRA I-BB) and Operations Reports (Form SPRA I-CC) and will furnish the same to the War Contracts Board and the Departmental Boards (see §§ 1607.751-6 and 1607.751-8 of this chapter). On the basis of the information supplied in the Progress Reports of the Services, the Assignments and Statistics Branch will prepare Status of Renegotiation Reports (Form SPRA I-B, set forth in § 1607.751-5 of this chapter) and Operations Reports (Form SPRA I-C, set forth in § 1607.751-7 of this chapter). In reporting for 1943, 1944 and 1945 cases, separate reports in similar form will be used for each year. [Paragraph (b) amended by Rev. 24, Apr. 5, 1946, 11 F.R. 4732]

§ 1602.255 Control of documents. [Revoked]

CODIFICATION: § 1602.255 was revoked by Revision 23, Feb. 15, 1946, 11 F.R. 3092.

Subpart F-Control of Renegotiation Records and Information Contained Therein [Added]

SOURCE: § 1602.260 to 1602.268, inclusive, contained in Revision 23, Feb. 15, 1946, 11 F.R. 3092, except as noted following provi. sions affected.

§ 1602.260 Scope of subpart. This subpart establishes the regulations governing the custody of information, records, and files relating to renegotiation proceedings conducted by or under the authority of the War Contracts Board. Since the jurisdiction of the War Contracts Board extends only to renegotiation proceedings with respect to fiscal years ended after June 30, 1943, control over and custody of information, records, and files relating to proceedings with respect to fiscal years ended on or before June 30, 1943 remains in the respective Departments and is subject to such regulations as may be in force within such Departments (see, for example, Article 95 of United States Navy

Regulations (1920), Army Regulations 410-5, etc.). [RR 260]

§ 1602.261 General. (a) Renegotiation agreements, reports, records, files, correspondence, memoranda, and all other data, documents, and material (hereinafter referred to generally as "documents") which have come into the possession of or have been prepared by any renegotiating agency, in connection with any renegotiation proceeding, are the property of the Government of the United States. They are in the legal custody of the War Contracts Price Adjustment Board and are subject to this chapter, notwithstanding that they may be in the physical possession of a Department or other agency to which the War Contracts Board has delegated certain of its authorities under the Renegotiation Act. They are not to be distributed, nor are their contents to be revealed to any person other than as provided in these regulations or as may be prescribed by the War Contracts Board in any specific instance. "Access" to documents, as used in this chapter, includes the furnishing of copies of such documents and oral disclosure of the contents of documents. Authority to grant access to documents includes the authority to prescribe the extent of such access and the terms and conditions upon which it will be granted. This chapter has no relevance to documents which the War Contracts Board has authorized to be distributed to the public.

(b) Under section 55 (f) (1) of the Internal Revenue Code it is unlawful for any person "to divulge or make known in any manner whatever not provided by law" any information set forth or disclosed in any Federal income return or copy thereof or abstract therefrom. Pursuant to other provisions of the Internal Revenue Code procedures have been established by the Treasury Department under which persons entitled to such information may get it from the Treasury Department. Accordingly, under no circumstances will access be afforded to copies of Federal tax returns, revenue agents' reports, or other Federal tax data in the custody of the War Contracts Board. Any such material will in every case be carefully excluded from any documents to which access is granted in accordance with this chapter. [RR 261]

§ 1602.262 Persons having access to renegotiation records. [RR 2621

§ 1602.262-1 Renegotiation personnel. Notwithstanding any other provision of this subpart, all personnel engaged in the administration or enforcement of the Renegotiation Act will be afforded access, in the course of their official duties, to any documents in the custody of the War Contracts Board. [RR 262.1]

CODIFICATION: A new § 1602.262 was added, as set forth above, and former § 1602.262 was redesignated § 1602.262-1, by Revision 26, Aug. 16, 1946, 11 F.R. 9569.

§ 1602.262-2 Departmental personnel. All personnel on duty in or employed by any of the "Departments" within the Renegotiation Act may, without specific approval of the War Contracts Board, be afforded access to any documents in the custody of the War Contracts Board, notwithstanding that such personnel are not engaged in the administration of the Renegotiation Act, if in the opinion of the Chairman of the Price Adjustment Board of the Department having physical possession of such documents, such access is necessary to or will facilitate the discharge of any official duty of such personnel and is not against the public interest. [RR 262.2]

CODIFICATION: Former § 1602.263 was redesignated § 1602.262-2, by Revision 26, Aug. 16, 1946, 11 F.R. 9569.

§ 1602.262-3 Other personnel in the executive branch of the Government. Subject to the exceptions hereinafter provided, personnel on duty in or employed by any agency or department of the executive branch of the Government, other than one of the "Departments" within the meaning of the Renegotiation Act, may, without specific approval of the War Contracts Board, be afforded access to any documents in the custody of the War Contracts Board only if such access has been directed by the President of the United States or any official of the United States to whom authority over the War Contracts Board has been given by statute or executive action. There are excepted from the provisions of the preceding sentence personnel employed by the Department of Justice or the General Accounting Office, to whom access to documents in the custody of the War Contracts Board may, without specific approval of the War Contracts Board, be afforded if, in the opinion of the Chairman of the Price Adjustment Board of the Department having physical posses

sion of such documents, such access is necessary to or will facilitate the discharge of any official duty of such personnel and is not against the pubilc interest. [RR 262.3]

CODIFICATION: Former § 1602.264 was redesignated § 1602.262-3, by Revision 26, Aug. 16, 1946, 11 F.R. 9569.

§ 1602.262-4 The legislative branch of the Government. The War Contracts Board will afford access to any documents in its custody to the Congress, or to any duly authorized committee of the Congress upon request of the Congress or such committee made in writing and submitted to the Chairman or the Secretary of the War Contracts Board. [RR 262.4]

CODIFICATION: Former § 1602.265 was redesignated § 1602.262-4, by Revision 26, Aug. 16, 1946, 11 F.R. 9569.

§ 1602.262-5 Persons properly and directly concerned in renegotiation. Persons properly and directly concerned in any renegotiation proceeding, or their duly authorized representatives may apply in writing to the Chairman of the Board of the Department or Service which conducted the proceeding for access to records of such proceeding. Access will be granted at times and places which are convenient in the light of the physical location of the records to which access is sought. Access is subject to § 1602.261 (b), and to the requirements of the Department or Service, for the security of classified material, and access will not be furnished under this section to memoranda and reports prepared by government employees for use within the agency, or to any other material which in the opinion of the Chairman should be held confidential for good cause shown. A person shall not be deemed properly and directly concerned in any renegotiation record unless it relates to renegotiation of the war contracts and subcontracts of such person, or of a partnership or joint venturer in which he was a partner or joint venturer during the period renegotiated, or unless the person has some other pecuniary interest in the result of a renegotiation proceeding such that, in the opinion of the Chairman, he would be caused unreasonable hardship by being denied access to records relating thereto. [RR 262.5] [Rev. 26, Aug. 16, 1946, 11 F.R. 9569]

§ 1602.263 Affording access to documents pursuant to subpoena or other

judicial process. Subpoenas duces tecum, or other judicial process constituting a demand for access to or the production of documents in the custody of the War Contracts Board, are properly to be served upon the Chairman of the War Contracts Board. No person, notwithstanding that he may have physical possession of such documents, is authorized to afford access thereto or to produce the same pursuant to subpoena duces tecum or other judicial process except upon authorization or direction from the Chairman of the War Contracts Board.

Whenever a subpoena or other process demanding the production of documents which are in the custody of the War Contracts Board, whether issued by a federal court, state court, or administrative tribunal (such as The Tax Court of the United States), is served upon any person, other than said Chairman, having possession of such documents, such person will appear in such court and respectfully decline to present such documents, basing his refusal upon this part and pointing out that the War Contracts Board's administrative process makes provision for the serving of such subpoenas upon its Chairman. [RR 263]

CODIFICATION: Former § 1602.266 was redesignated § 1602.263, by Revision 26, Aug. 16, 1946, 11 F.R. 9569.

§ 1602.264 Disclosure of information acquired in the performance of duties in connection with renegotiation. Disclosure of facts, knowledge of which was acquired in the course of official duty in connection with any renegotiation proceeding conducted by or under the authority of the War Contracts Board, is to be made only to such persons or bodies and subject to the same restrictions as are provided in the regulations in this chapter with respect to access to documents in the custody of the War Contracts Board. [RR 264]

CODIFICATION: Former § 1602.267 was redesignated § 1602.264, by Revision 26, Aug. 16, 1946, 11 F.R. 9569.

§ 1602.265 Control of physical possession of documents. Any person transferred or separated from duty or employment in connection with renegotiation, or transferred or separated from duty or employment in any other connection in which possession of documents in the custody of the War Contracts Board is authorized, shall, upon such transfer or separation, deliver all

such documents in his possession into the possession of a responsible official. [RR 265]

CODIFICATION: Former § 1602.268 was redesignated § 1602.265, by Revision 26, Aug. 16, 1946, 11 F.R. 9569.

§ 1602.266 Opinions and orders. Except as authorized in §§ 1602.260 to 1602.265, inclusive, opinions and orders will not be published or made available to the public, pursuant to sec. 3 (b) of the Administrative Procedure Act, inasmuch as they are regarded as confidential for good cause shown, by reason of the confidential data relating to contractor's business, furnished by contractors, and included therein. For the purposes of this section, the term "opinion" includes a statement furnished pursuant to §§ 1605.520 to 1605.525-2, inclusive, of this chapter, and the term "order" includes an agreement to eliminate excessive profits, as well as a unilateral determination. Opinions and orders are not cited as precedents in any renegotiation proceedings. [RR 266]

CODIFICATION: Former § 1602.266 was redesignated § 1602.263, and a new § 1602.266 was added, by Revision 26, Aug. 16, 1946, 11 F.R. 9569.

§ 1602.267 Disclosure of information acquired in the performance of duties in connection with renegotiation. [Redesignated]

CODIFICATION: Former § 1602.267 was redesignated § 1602.264, by Revision 26, Aug. 16, 1946, 11 F.R. 9569.

(c) However, with respect to a fiscal year ended on or after January 31, 1945, if the discontinuance of war business, with particular regard to the time, character and extent of the discontinuance and the relationship between discontinuance costs and renegotiable receipts or accruals, results in a situation in which renegotiation on the basis of the fiscal year may work a severe and irreparable hardship, the circumstances may be submitted by the renegotiating agency, through the Chairman of the Price Adjustment Board of the Department conducting the renegotiation, to the War Contracts Board for it to consider and prescribe appropriate action. [RR 301.2] [Paragraph (c) added by Rev. 23, Feb. 15, 1946 11 F.R. 3093]

§ 1603.313-2 Renegotiation with respect to fiscal years ending after July 31, 1945. Subsection (h) of the Renegotiation Act provides that such act shall apply only with respect to profits from contracts with the Departments and subcontracts which, under regulations prescribed by the Board, are determined to be allocable to performance prior to the close of the termination date as defined in such subsection (see § 1603.370 and following). To ensure the proper application of that subsection in the event that the termination date should be fixed

at a date prior to December 31, 1945, no determination of excessive profits shall be made by agreement with respect to fiscal years ending after July 31, 1945 unless there is embodied in such agreement the special contract article set forth in § 1607.741-2 (i) (3) of this chapter (whether or not such fiscal year has ended at the time of renegotiation). Nor in any such case shall a determination of no excessive profits be made except by an agreement containing such special contract article. The provisions of this section shall not apply (a) with respect to a determination of excessive profits or no excessive profits which is made after the date on which the termination date of the Renegotiation Act, as defined in subsection (h) thereof, becomes fixed or which is made for a part of contractor's fiscal year under § 1603.3131 (e) (1), which part ended on or before July 31, 1945; (b) with respect to a determination of no excessive profits if the renegotiating agency determines that such determination of no excessive profits would not, under any circumstances, be affected by a change in such termination date; or (c) with respect to a determination of excessive profits made by order. [RR 313.2]

CODIFICATION: § 1603.313-2 was revised, as set forth above, by Revision 25, June 28, 1946, 11 F.R. 8033. Prior to revision, the last sentence was amended to read as follows, by Revision 24, Apr. 5, 1946, 11 F.R. 4733. "The provisions of this section shall not apply (a) with respect to a determination of excessive profits or no excessive profits which is made after the date on which the termination date of the Renegotiation Act, as defined in subsection (h) thereof, becomes fixed or which is made for a part of contractor's fiscal year under § 1603.313-1 (c) (1), which part ended on or before July 31, 1945; (b) with respect to a determination of no excessive profits if the renegotiating agency determines that such determination of no excessive profits would not, under any circumstances, be affected by a change in such termination date.".

Subpart E-Permissive Exemptions from Renegotiation

§ 1603.351-2 Exemption.

(b) Pursuant to the provisions of paragraph (a) of this section, the War Contracts Board has determined with respect to all subcontracts to be performed in Canada but any substantial part of the work incident to which subcontracts is

performed within the territorial limits of the United States or in Alaska,

(1) That administrative difficulties do not make impracticable the renegotiation of such subcontracts.

(2) That the procurement program of the United States in foreign countries will not be adversely affected by such renegotiation, and

(3) That such renegotiation will not otherwise be contrary to the interests of the United States.

Such subcontracts are, therefore, not exempt from renegotiation under subsection (i) (4) (A) of the Renegotiation Act or under paragraph (a) of this section.

(c) Except as to subcontracts referred to in paragraph (b) of this section and except as provided in the last sentence of this paragraph, if a contractor assigned for renegotiation has receipts or accruals from a contract or subcontract described in paragraph (a) of this section, the renegotiating agency shall, before completing the renegotiation, furnish to the Department which entered into such contract or into the contract under which such subcontract was made, the following information:

(1) A statement as to whether administrative difficulties do or do not make impracticable the renegotiation of such contract or subcontract,

(2) A statement of opinion based upon all the facts available to the renegotiating agency as to whether the procurement program of the United States will be adversely affected by the renegotiation of such contract or subcontract,

(3) A statement of opinion based upon all the facts available to the renegotiating agency as to whether such renegotiation will be contrary to the interests of the United States, and

(4) A request that a determination be made that such contract or subcontract is or is not exempt from the provisions of the Renegotiation Act.

The Secretary of the Department to which the foregoing is submitted, or any authority to whom the power to exempt individual contracts under subsection (i) (4) (A) of the 1943 Act has been, or may be delegated or redelegated, shall make the findings with respect to the matters set forth in paragraph (a) of this section and promptly notify the renegotiating agency of such findings

The finding called for in subparagraph (1) of paragraph (a) of this section may be based entirely upon the statement called for in subparagraph (1) of paragraph (b) of this section. If such findings cannot be made, that fact will be promptly communicated to the renegotiating agency. The renegotiating agency need not follow the foregoing procedure if it appears that a clearance or cancellation of the assignment would be appropriate even though the receipts or accruals from the contract or subcontract in question were considered as subject to renegotiation.

CODIFICATION: In § 1603.351-2 former paragraphs (b), (c), and (d) were redesignated (c), (d), and (e), respectively; a new paragraph (b) was added, and redesignated paragraph (c) was amended, as set forth above, by Revision 23, Feb. 15, 1946, 11 F.R. 3093. Subpart G-Termination of Renegotiation

§ 1603.374 Costs paid or incurred.

(d) Notwithstanding the foregoing provisions of this section, no cost which has not been paid or incurred prior to January 1, 1947 will be allocated to performance prior to the close of the termination date. The determination as to whether a cost is paid or incurred prior to such date shall be made by reference to the method of accounting employed by the contractor for purposes of renegotiation. The time limitation specified in the first sentence of this paragraph shall not apply to costs which are accounted for on a completed contract basis or similar method of accounting. If it appears that a cost allocable to performance prior to the close of the termination date will be paid or incurred prior to January 1, 1947, the cost may be allowed conditionally as provided in paragraph (c) of this section. If it appears that the cost will not be paid or incurred prior to January 1, 1947, the risk that the cost will be paid or incurred after such date will, in accordance with § 1604.413-2 (a) of this chapter, be taken into consideration with the other risks assumed by the contractor. In no case will such risk be taken into consideration if the cost is allowed conditionally. [RR 374] [Paragraph (d) amended by Rev. 23, Feb. 15, 1946, 11 F.R. 3094]