70 S T A T. ]
PUBLIC LAW 870-AUG. 1, 1956
789
(2) by adding at the end thereof the following: " I n the case of a fiscal year beginning on or before the termination date and ending after the termination date, the $1,000,000 amount and the $25,000 amount shall be reduced to an amount which bears the same ratio to $1,000,000 or $25,000, as the case may be, as the number of days in such fiscal year before the close of the termination date bears to 365." SEC. 7. (a) Section 105(f)(3) of such Act (50 U.S.C. App., sec. 1215 (f)(3)) is further amended by striking out, in the first sentence, 6S Stat. i6. "for the purposes of paragraphs (1) and (2) " and inserting in lieu thereof "for the purposes of paragraph (1)". (b) The amendment made by subsection (a) shall apply only with so respect to fiscal years (as defined in section 103(h) of such Act) 1213. U S C a p p, ending on or after June 30, 1956. SEC. 8. (a) Section 106(a)(7) of such Act (50 U.S.C. App., sec, 1216 (a)(7)) is amended by striking out "other than paragraph g^ll \lf^' ^^' ^ ® (8) " and inserting in lieu thereof "other than paragraph (1), (5), or (8)". (b) The amendment made by subsection (a) shall apply only with respect to subcontracts made after June 30, 1956. SEC. 9. (a) Section 106 of such Act (50 U.S.C. App., sec. 1216) is amended by striking out paragraph (8) in subsection (a), and by 68 Stat. 1117. adding at the end of such section the following new subsection: " (e) MANDATORY EXEMPTION FOR STANDARD COMMERCIAL ARTICLES AND SERVICES.— "(1) ARTICLES AND SERVICES.—The provisions of this title shall
not apply to amounts received or accrued in a fiscal year under any contract or subcontract for an article or service which (with respect to such fiscal year) is— " (A) a standard commercial article; " (B) an article which is identical in every material respect with a standard commercial article; or " (C) a service which is a standard commercial service or is reasonably comparable with a standard commercial service. "(2) CLASSES OF ARTICLES.—The provisions of this title shall not apply to amounts received or accrued in a fiscal year under any contract or subcontract for an article which (with respect to such fiscal year) is an article in a standard commercial class of articles. " (3) APPLICATIONS.—Paragraph (1)
(B) or (C)
and para-
graph (2) shall apply to amounts received or accrued in a fiscal year under any contract or subcontract for an article or service only if— " (A) the contractor or subcontractor at his election files, at such time and in such form and detail as the Board shall by regulations prescribe, an application containing such information and data as may be required by the Board under its regulations for the purpose of enabling it to make a determination under the applicable paragraph, and " (B) the Board determines that such article or service is, or fails to determine that such article or service is not, an article or service to which such paragraph applies, within the following periods after the date of filing such application: " (i) in the case of paragraph (1)(B) or (C), three months; "(ii) in the case of paragraph (2), six months; or "(iii) in either case, any longer period stipulated by inntual agreement.
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