PUBLIC LAWS-CH. 358-JULY 1, 1944 the Treasury, the Chairman of the Maritime Commission, the Admin- istrator of the Foreign Economic Administration, the chairman of the board of directors of the Reconstruction Finance Corporation, the Chairman of the War Production Board, the chairman of the board of directors of the Smaller War Plants Corporation, and the Attorney General or any alternate or representative designated by tartioipation by any of them. The Director shall request other Government agencies other Government anyeofgthe genMies, to participate in the deliberations of the Board whenever matters specially affecting them are under consideration. pensatidonfor SEC. 6 . (a) It is the policy of the Government, and it shall be the ti ar contracts responsibility of the contracting agencies and the Director, to provide . war contractors with speedy and fair compensation for the termination of any war contract, in accordance with and subject to the provisions of this Act, giving priority to contractors whose facilities are privately owned or privately operated. Such fair compensation for the termi- Subcontrcts. nation of subcontracts shall be based on the same principles as com- pensation for the termination of prime contracts. ethhoodseandsntad (b) Each contracting agency shall establish methods and standards, fir compensation suitable to the conditions of various war contractors, for determining fair compensation for the termination of war contracts on the basis of actual, standard, average, or estimated costs, or of a percentage of the contract price based on the estimated percentage of completion of work under the terminated contract, or on any other equitable basis, as it deems appropriate. To the extent that such methods and stand- ards require accounting, they shall be adapted, so far as practicable, to the accounting systems used by war contractors, if consistent with recognized commercial accounting practice. Settlement by L (c) Any contracting agency may settle all or any part of any termination claim under any war contract by agreement with the war contractor, or by determination of the amount due on the claim or part thereof without such agreement, or by any combination of Where made by these methods. Where any such settlement is made by agreement, agreement. the settlement shall be final and conclusive, except (1) to the extent otherwise agreed in the settlement; (2) for fraud; (3) upon re- negotiation to eliminate excessive profits under the Renegotiation Act, unless exempt or exempted under that Act; or (4) by mutual An., p.78. agreement before or after payment. Where any such settlement Whree mde with- is made by determination without agreement, it shall likewise be final and conclusive, subject to the same exceptions as if made by agreement, unless the war contractor appeals or brings suit in ac- PSe wof s ettle- cordance with section 13 of this Act: Provided, That no settlement ment In excess of agreement hereunder involving payment to a war contractor of an "edammt. amount in excess of $50,000 (or such lesser amount as the Director may from time to time determine) shall become binding upon the Government until the agreement has been reviewed and approved by a settlement review board of three or more members established by the contracting agency in the bureau, division, regional or district office, or other unit of the contracting agency authorized to make such set- tlement, or in the event of disapproval by the settlement review board, unless approved by the head of such bureau, division, regional or district office, or other unit. Failure of the settlement review oard to act upon any settlement within thirty days after its submission to the board shall operate as approval by the board. The sole function of settlement review boards shall be to determine the over-all reason- ableness of proposed settlement agreements from the point of view of protecting the interests of the Government. In determining, for pur- poses of this subsection, whether review of any settlement agreement is required because of the amounts involved, no deduction shall be made on account of credits for property chargeable to the Government [58 STAT.
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