PUBLIC LAWS-CH. 35-APR. 3 , 1939 52 Stat. 708. 50 U. S. C., Supp. IV, § 94. Educational orders for special war muni- tions, etc. Availability of funds for designated studies, etc. Appropriation au- thorized; availability. Post, pp. 595, 993. Contracts for air- craft for the Army. 48 Stat. 505; 49 Stat. 1926. 34U.S.C.§496; Supp. IV, § 496. Proisos. Authority of Secre- tary of War. Limitation on prof- its. If net loss or insuffi- cient profit; allowance as credit during next succeeding years. Method ofascertain- ment. Purchase of sample aircraft from competi- tors to whom award not made authorized. SEC. 13. That section 4 of the Act approved June 16, 1938, entitled "An Act to provide for placing educational orders to familiarize private manufacturing establishments with the production of muni- tions of war of special or technical design, noncommercial in character", be amended to read as follows: "SEc. 4 . That funds appropriated to accomplish the purposes of this Act shall be available for expenditures incidental to the accom- plishment,of the procurements made thereunder, including production studies, factory plans, and other production data and the storage and maintenance of gages, dies, jigs, tools, fixtures, and other special aids and appliances procured thereunder. To carry out the provisions of this Act there is authorized to be appropriated the sum of $34,500,000, which amount shall be available during the fiscal years 1939, 1940, and 1941, and there is further authorized to be appropriated the sum of $2,000,000 during each of the four fiscal years succeeding the fiscal year 1941." SEC. 14. All the provisions of section 3 of the Act of March 27, 1934, as amended (48 Stat. 505; 49 Stat. 1926), and as amended by this section shall be applicable with respect to contracts for aircraft or any portion thereof for the Army to the same extent and in the same manner that such provisions are applicable with respect to con- tracts for aircraft, or any portion thereof for the Navy: Provided, That the Secretary of War shall exercise all functions under such section with respect to aircraft for the Army which are exercised by the Secretary of the Navy with respect to aircraft for the Navy: Providedfurther, That section 3 b of the Act of March 27, 1934 (48 Stat. 505), as amended (49 Stat. 1926; 34 U. S . C . Supp. IV 496), is hereby further amended by inserting in the first sentence after the words "in excess of 10 per centum of the total contract prices" the words "for the construction and or manufacture of any complete naval vessel or portion thereof, and in excess of 12 per centum of the total contract prices for the construction and or manufacture of any com- plete aircraft or portion thereof"; by inserting in the first proviso after the words "That if there is a net loss on all such contracts or subcontracts" the words "for the construction and or manufacture of any complete naval vessel or portion thereof"; and by inserting at the end of the first proviso after the words "income taxable year" a comma and the words "and that if there is a net loss, or a net profit less than 12 per centum, as aforesaid on all such contracts or subcon- tracts for the construction and or manufacture of any complete air- craft or portion thereof completed by the particular contractor or subcontractor within any income taxable year, such net loss or deficiency in profit shall be allowed as a credit in determining the excess profit, if any, during the next succeeding four income taxable years, and that the method of ascertaining the amount of excess profit, initially fixed upon shall be determined on or before June 30, 1939": Provided further, That when aircraft are procured by the Secretary of War as a result of competitive bids requiring the submission of sample aircraft with bid, the Secretary is authorized, in his discretion. to purchase sample aircraft of competitors to whom an award is not made, not more than one each from not more than three such com- petitors, in order of merit, at prices not exceeding 75, 60, and 50 per centum, respectively, of the cost applicable in the opinion of the Secretary to the development and manufacture of such sample aircraft. Approved, April 3, 1939. 560 [53 STAT.
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