tion of complete naval vessels or aircraft, or any portion thereof, including plans, spare parts, and equipment therefor, that have been Machine tools or may be authorized, and also for machine tools and other similar equipment, with or without advertising or competitive bidding upon Priority in deliv- determination that the price is fair and reasonable. Deliveries of era es . material under all orders placed pursuant to the authority of this paragraph and all other naval contracts or orders and deliveries of material under all Army contracts or orders shall, in the discretion of the President, take priority over all deliveries for private account epotsto ongress or for export: Provided, That the Secretary of the Navy shall report every three months to the Congress the contracts entered into under Restriction. the authority of this paragraph: Provided further, That contracts negotiated pursuant to the provisions of this paragraph shall not be deemed to be contracts for the purchase of such materials, supplies, articles, or equipment as may usually be bought in the open market 4 SU.S.' 43. within the meaning of section 9 of the Act entitled 'An Act to provide conditions for the purchase of supplies and the making of contracts by the United States, and for other purposes', approved June 30, 1936 (49 Stat. 2036; U. S. C., Supp. V, title 41, secs. 35-45): Provided B onds. further, That nothing herein contained shall relieve a bidder or con- tractor of the obligation to furnish the bonds under the requirements 0d;.upp. §§270a of the Act of August 24, 1935 (49 Stat. 793; 40 U. S . C . 270 (a) to 270d. (d)): Provided further, That the cost-plus-a -percentage-of-cost ost-plus contracts. system of contracting shall not be used under the authority granted by this paragraph to negotiate contracts; but this proviso shall not be construed to prohibit the use of the cost-plus-a-fixed-fee form of contract when such use is deemed necessary by the Secretary of the Fed ee. Navy: And provided further, That the fixed fee to be paid the con- tractor as a result of any contract entered into under the authority of this paragraph, or any War Department contract entered into in the form of cost-plus-a -fixed-fee, shall not exceed 7 per centum of the estimated cost of the contract (exclusive of the fee as determined by the Secretary of the Navy or the Secretary of War, as the case Deliveries may be). nd-lease contracts, (2) Deliveries of material to which priority may be assigned pur- etc. suant to paragraph (1) shall include, in addition to deliveries of material under contracts or orders of the Army or Navy, deliveries of material under- "(A) Contracts or orders for the government of any country whose defense the President deems vital to the defense of the sU.8 . C.supp. United States under the terms of the Act of March 11, 1941, §41-419 . entitled 'An Act to promote the defense of the United States'; "(B) Contracts or orders which the President shall deem neces- sary or appropriate to promote the defense of the United States; "(C) Subcontracts or suborders which the President shall deem necessary or appropriate to the fulfillment of any contract or order as specified in this subsection (a). Deliveries under any contract or order specified in this subsection (a) may be assigned priority over deliveries under any other contract or order; and the President may require acceptance of and performance under such contracts or orders in preference to other contracts or rial or scflii ate orders for the purpose of assuring such priority. Whenever the President is satisfied that the fulfillment of requirements for the defense of the United States will result in a shortage in the supply of any material or of any facilities for defense or for private account or for export, the President may allocate such material or facilities in such manner, upon such conditions and to such extent as he shall deem necessary or appropriate in the public interest and to promote the national defense. 178 [56 STAT. PUBLIC LAWS-CH. 199-MAR . 27, 1942
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