Page:United States Statutes at Large Volume 70A.djvu/194

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136 §2381. Contracts: regulations for bids (a) The Secretary of a military department may— (1) prescribe regulations for the preparation, submission, and opening of bids for contracts with that department; and (2) require that a bid be accompanied by a written guaranty, signed by one or more responsible persons, undertaking that the bidder, if his bid is accepted, will, within the time prescribed by the Secretary or other officer authorized to make the contract, make a contract and furnish a bond with good and sufficient sureties for the performance of the contract. (b) If a bidder, after being notified of the acceptance of his bid, fails within the time prescribed under subsection (a)(2) to enter into a contract and furnish the prescribed bond, the Secretary concerned or other authorized officer shall— (1) contract with another person; and (2) charge against the defaulting bidder and his guarantors the difference between the amount specified by the bidder in his bid and the amount for which a contract is made with the other person, this difference being immediately recoverable by the United States for the use of the military department concerned in an action against the bidder and his guarantors, jointly or severally. (c) Proceedings under this section are subject to regulations under section 486 of title 40, unless exempted therefrom under section 481(a) of that title. §2382. A i r c r a f t: contract requirements (a) The Secretary of a military department may not contract for the manufacture of all or part of any complete aircraft, unless the contractor agrees— (1) to report under oath to the Secretary, when the contract is completed, as prescribed in subsection (b): (2) to pay any excess profit into the Treasury; (3) to make no division of any contract or subcontract for the same article for the purpose of evading this section; (4) that the books and manufacturing spaces of its plant, affiliates, and divisions may at any time be audited and inspected, respectively, by any person designated by the Secretary of the military department concerned, the Secretary of the Treasury, or an authorized committee of Congress; and (5) to make no subcontract unless the subcontractor agrees to the conditions set forth in this subsection. (b) The report required under subsection (a)(1) shall be in the form prescribed by the Secretary of the military department concerned. I t shall state the total contract price, the cost of performing the contract, the net profit or loss, and the percentage of the contract price that is net profit or loss. A copy shall be sent to the Secretary of the Treasury to be considered with the Federal income tax returns of the contractor. (c) For the purposes of this section, "excess profit'* means so much of the profits as the Secretary of the Treasury determines to