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DOCUMENT RESUME
01185 - [A1051841]
(Proposed Legislation to Revise and Extend the Renegotiation Act
of 1951]. March 31, 1977. 11 pp.
Testimcny before the House Committee on BaLkin,, Finaace and
Urban Affairs: Generdl Oversight and Renogotiaticn Sutcommittee;
by Richard W. Gutmain, Director, Procurement and Systems
Acquisition Div.
Issue Arei: Federal Procurement of Goods and Services (1900).
Contact: Procurement and Systems Acquisition Div.
Budget Function: General Government: Other General Government
(806).
congressional Relevance: House Committee on Banking, Finance and
Urtan Affairs: General Oversight and Renogotiation
Sutcommittee-
Puthority: Renegotiation Act of 1951; H.R. 4082 (95th Cong.).
The proposed legislation to revise and extend the
Renegotiation Act of 1951 (H.R. 4082) is constructive and should
lead tc mijor improvements in the renegotiation Fro,-ess. Kaking
the Renegotiation Beard a permanent agency of the Federal
Government could enhance its ability to recruit qualified
personnel and provide an incentive for long range planning.
Extending the act to cover contracts of all Government agencies
would also be an improvement. Elim niting the percentage of
completion method of accounting for contracts which are subject
to renegotiation is an important improvement. Excessive profits
can be determined with reasonable certainty only when units are
delivered or at contract completion. Requiring ccntractors to
report renegotiation business on the basis cf division and
product line is a much needed reform. The elimination of the oil
and gas well exemption from renegotiation is a necessary reform
due to changing world conditions. Raising the minimum levels of
annual sales subject to renegotiation does not appear to be
advisable. Congress should eliminate the partial exemption of
sales of new, durable productive equipment from renegotiation.
Congress should consider including a provision requiring the
Board to establish guidelines for applying statutory factors for
determining excessive profits in the proposed legislation. (SC)](ViewImageLocal?handle=hein.gao/gaobadxtm0001&div=1&collection=&method=preview&ext=.png&size=3)