55 STAT.] 77TH CONG., 1ST SESS.-CH. 84 -MAY 2,1941 not exceed the amount which would have been payable if the contract as modified had been entered into under the authority of this section; (3) the furnishing of materials and performance of work required for or in connection with contracts made by the Commission for the acquisition, construction, reconstruction, alteration, reconditioning, repair, outfitting, or equipping of vessels shall, in the discretion of the President, take priority over the furnishing of materials or performance of work for private account or for export. (b) The provisions of Public Law Numbered 831, Seventy-sixth Congress, approved October 10, 1940 (54 Stat. 1092) (relating to com- pensation for all hours worked by laborers and mechanics m excess of eight hours per day or forty hours per week at not less than one- and-one -half times the basic rate of pay), shall apply in respect of any contract negotiated pursuant to subsection (a) hereof. (c) The cost-plus-a -percentage-of-cost system of contracting shall not be used under the authority to negotiate contracts granted by sub- section (a) hereof, but contracts may be used providing for payment of cost plus a fixed fee, or cost plus a fixed fee with such bonuses and penalties as the Commission may deem necessary to secure maximum performance under such contracts, if for each contract (1) such fixed fee does not exceed 7 per centum of the estimated cost of the contract (exclusive of the fee and any bonuses payable thereunder) as deter- mined by the Commission at the time of entering into such contract, and (2) the aggregate of such fixed fee plus any such bonuses pay- able thereunder does not exceed 10 per centum of such estimated cost. Performance or payment bonds required of the contractor under the Act of August 24, 1935 (49 Stat. 793; U. S . C ., title 40, sec. 270a to 270d), may be waived by the Commission with respect to any contract negotiated or modified hereunder providing for payment of cost plus a fee as herein authorized. Any contract negotiated or modified here- under providing for payment of cost plus a fee as herein authorized shall be excluded from consideration in the determination of profit of the contractor under section 505 (b) (2) of the Merchant Marine Act, 1936, as amended. (d) The Commission shall report every three months to the Con- gress the contracts entered into or modified under the authority hereof and not included in a prior report. SEC. 3. Whenever, during the national emergency declared by the President on September 8, 1939, to exist, but not after June 30, 1942, the Maritime Commission determines that operation in the foreign trade under charter to a private operator of any vessel of the Com- mission available for the purposes hereof is necessary for the main- tenance of the foreign commerce of the United States, and that the necessary service cannot be so provided as to meet effectively such needs under the provisions of the Merchant Mdrine Act, 1936, as amended, the Commission may, notwithstanding any other provision of law, charter such vessel to a private operator, a citizen of the United States (as defined in section 2 of the Shipping Act, 1916, as amended), for use in such foreign trades or services as the Commis- sion may prescribe, on time or bare-boat basis, with or without com- petitive bidding or advertisement, upon such terms and conditions, for such period or periods, and subject to such restrictions, as the Commission may deem necessary or desirable for the protection of the public interest, and at such rate of charter as it may deem to be fair and reasonable in view of the attendant circumstances, but if the vessel is one constructed under the said Act, not lower than the minimum charter hire would be if the vessel were chartered under the provisions of section 714 of the said Act, as amended. Nothing in 149 Priorities. Overtime compen- sation. 40U.S.C.§326 note. Form of contracts. Waiver of certain requirements. 49 Stat. 1998. 46U..C. C 1155 (h) (2). Relxrts to ('ongress. Chartering If v*\ 54 Stat. 2643. 0U. S. C.,app, prec. 11 note. 49 Stat. 2008. 46U.S.C. §j1191- 1204. 39 Stat. 729. 46 U.S. C. i 802. Charter rate. 49 Stat. 2011 . 46 U.S .8. C. 1204.
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