PUBLIC LAWS-CH. 63-FEB. 25, 1944 Insertion in sub- contracts. Ane,p. 80. Binding character of obligations, condi- tion. Conferenes respect- ing excessive profits. Notice to contractor or subcontractor. Agreement. Order determining amount of excessive profits. "(3) that he will insert in each subcontract described in sub- section (a) (5) (A) involving an estimated amount of more than $100,000, and in each subcontract described in subsection (a) (5) (B) involving an estimated amount of more than $25,000, a provision under which the subcontractor agrees- "(A) to the elimination of excessive profits through re- negotiation; (B) that there may be retained by the contractor for the United States from amounts otherwise due the subcon- tractor, or that the subcontractor will repay to the United States, if paid to him, any excessive profits; "(C) that the contractor shall be relieved of all liability to the subcontractor on account of any amount so retained, or so repaid by the subcontractor to the United States; "(D) that he will insert in each subcontract described in subsection (a) (5) (A) involving an estimated amount of more than $100,000, and in each subcontract described in subsection (a) (5) (B) involving an estimated amount of more than $25,000, provisions corresponding to those of subparagraphs (A), (B), and (C) and to those of this sub- paragraph; "(4) that there may be retained by the United States from amounts otherwise due the contractor, or that he will repay to the United States, as the Secretary may direct, any amounts which under paragraph (3) (B) the contractor is directed to withhold from a subcontractor and which are actually unpaid at the time the contractor receives such direction. The obligations assumed by the contractor or subcontractor under paragraph (1) or (3) (A), as the case may be, agreeing to the elimination of excessive profits through renegotiation shall be bind- ing on him only if the contract or subcontract, as the case may be, is subject to subsection (c). A provision inserted in a contract or subcontract, which recites in substance that the contract or subcon- tract shall be deemed to contain all the provisions required by this subsection shall be sufficient compliance with this subsection. Whether or not there is inserted in a contract with a Department or subcontract, to which subsection (c) is applicable, the provisions specified in this subsection, such contract or subcontract, as the case may be, shall be considered as having been made subject to such subsection in the same manner and to the same extent as if such provisions had been inserted. "(c) (1) Whenever, in the opinion of the Board, the amounts received or accrued under contracts with the Departments and sub- contracts may reflect excessive profits, the Board shall give to the con- tractor or subcontractor, as the case may be, reasonable notice of the time and place of a conference to be held with respect thereto. The mailing of such notice by registered mail to the contractor or subcon- tractor shall constitute the commencement of the renegotiation pro- ceeding. At the conference, which may be adjourned from time to time, the Board shall endeavor to make a final or other agreement with the contractor or subcontractor with respect to the elimination of excessive profits received or accrued, and with respect to such other matters relating thereto as the Board deems advisable. Any such agreement, if made, may, with the consent of the contractor or sub- contractor, also include provisions with respect to the elimination of excessive profits likely to be received or accrued. If the Board does not make an agreement with respect to the elimination of excessive profits received or accrued, it shall issue and enter an order determin- ung the amount, if any, of such excessive profits, and forthwith give 82 [58 STAT.
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