1998
74T H C ONGRESS . SESS. II . CH. 858. JUNE 29, 1936. Applic ant des iring t o SEC . 504 . Where an eligible applicant under the terms of this title finan ce constr uction ; sub mission of bids to desires to finance the construction of a proposed vessel acco rding commission .
to approved plans and specifications rath er than purchase the same vessel from the Commission as hereinabove authorized, the Commis- sion may permit the applicant to obtain and submit to it competitive Approval by Cc- bids from American shipyards for such work . If the C ommission mission . considers the bid of the shipyard in which the applicant desires to have the vessel built fair and reasonable and if it is the lowest bid, it may approve such bid and become a part y to the contract or con- tra cts o r oth er ar range ments for the c onstr uctio n of such propo sed vessel and may agree to pay to the shipbuilder a construction sub- Ante, p. 1996.
sidy in an amount determined by the Commission in accordance with Pr tee Prot ed
section 502 of this title : Provided, however, That no subsidy as p r o - w e n t interests . vided in this section shall be paid unless the said contract or con- tracts or other arrangements contain such provisions as are provided in this title to protect the interests of the United States as the Oom- Documentation of mission deems necessary . Such vessel shall be documented under vessel . the laws of the United States as provided in section 503 of this title and op erated as approve d by the Commissio n under the requi re- ments applicable to vessels constructed under this Act. Construction in SEC. 505 (a) All construction in respect of which a subsidy is domestic shipyards . allowed under this title shall be performed in a shipyard within the continental limits of the United States as the result of competi- tive bidding, after due advertisement, with the right reserved in the applicant to reject, and in the Commission to disapprove, any use of articles of or all bids . In all such construction the shipbuilder, subcontractors, United States manu- facture, c
materialmen, or suppliers shall use, so far as practicable, only arti- cles, materials, and supplies, of the growth, production, or manu- Vol.46,p.708.
facture of the United States as defined in paragraph K of section Shipbuilders
- qualifi-
401 of the Tariff Act of 1930 . No shipbuilder shall be deemed a cation necessary.
responsible bidder unless he possesses the ability, experience, finan- cial resources, equipment, and other qualifications necessary properly Detailed e est imat es t to perform the proposed contract . Each bid submitted to the Com- tractors' bids, etc . mission shall be accompanied by all detailed estimates upon which it is based . The Commission may require that the bids of any subcontractors, or other pertinent data, accompany such bid . All such bids and data relating thereto shall be kept permanently on file. Terms of agreement
(b) No contract shall be made for the construction of any vessel wiR heportbni laerh under this Act unless the shipbuilder shall agree (1) to make a report under oath to the Commission upon completion of the con- tract, setting forth in the form prescribed by the Commission the total contract price, the total cost of performing the contract, the amo unt o f the ship build er's overh ead c harge d to such cost, the net profits and the percentage such net profit bears to the contract price, Payment of excess and such othe r inf ormat ion a s the Comm issio n sha ll pr escri be
(2) p rofits . to pay to the Commission profit, as hereinafter provided shall be determined by the Commission, in excess of 10 per centum of the total contract prices of such contr acts withi n the scop e of this section as are completed by the particular contracting party within the income taxable year, such amount to become the property of the Provisos.
United States, but the surety under such contracts shall not be liable . Net less in any year for the payment of such excess profit : Provided, That if there is a a credit in succeeding net loss on all such contracts or subcontracts completed by the par- year .
ticular contractor or subco ntractor within any income taxable year, such net loss shall be allowed as a credit in determining the excess taAction i if not volun- profit, if any, for the next succeeding income taxable year : Provided, That, if such amount is not voluntarily paid, the Commission shall
