790
PUBLIC LAW 870-AUG. 1, 1966
[70 S T A T.
"(4) DEFINITIONS.—For the purposes of this subsection— " (A) the term 'article' includes any material, part, component, assembly, machinery, equipment, or other personal property; " (B) the term 'standard commercial article' means, with respect to any fiscal year, an article— "(i) which either is customarily maintained in stock by the contractor or subcontractor or is offered for sale in accordance with a price schedule regularly maintained by the contractor or subcontractor, and "(ii) from the sales of which by the contractor or subcontractor at least 35 percent of the receipts or accruals in such fiscal year, or of the aggregate receipts or accruals in such fiscal year and the preceding fiscal year, are not (without regard to this subsection and subsection (c) of this section) subject to this title; " (C) an article is, with respect to any fiscal year, 'identical in every material respect with a standard commercial article' only if— " (i) such article is of the same kind and manufactured of the same or substitute materials (without necessarily being of identical specifications) as a standard commercial article from sales of which the contractor or subcontractor has receipts or accruals in such fiscal year, " (ii) such article is sold at a price which is reasonably comparable with the price of such standard commercial article, and "(iii) at least 35 percent of the aggregate receipts or accruals in such fiscal year by the contractor or subcontractor from sales of such article and sales of such standard commercial article are not (without regard to this subsection and subsection (c) of this section) subject to this title; " (D) the term 'service' means any processing or other operation performed by chemical, electrical, physical, or mechanical methods directly on materials owned by another person; " (E) the term 'standard commercial service' means, with respect to any fiscal year, a service from the performance of which by the contractor or subcontractor at least 35 percent of the receipts or accruals in such fiscal year are not (without regard to this subsection) subject to this title; " (F) a service is, with respect to any fiscal year, 'reasonably comparable with a standard commercial service' only if— " (i) such service is of the same or a similar kind, performed with the same or similar materials, and has the same or a similar result, without necessarily involving identical operations, as a standard commercial service from the performance of which the contractor or subcontractor has receipts or accruals in such fiscal year, and "(ii) at least 35 percent of the aggregate receipts or accruals in such fiscal year by the contractor or subcontractor from the performance of such service and such standard commercial service are not (without regard to this subsection) subject to this title; and
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