An Act to amend the Defense Production Act of 1950, and for other purposes
PL 91-379 (S.3302), enacted 08/15/1970

796 
Joint annual 
report to Presi-
dent for trans-
mittal to Con-
gress, 
PUBLIC LAW 91-379-AUG. 15, 1970 
SECRETARIAL REPORTS 
[84 STAT. 
SEC. 4. Upon completion of each year's pilot program, the Secretary 
of the Interior and Secretary of Agriculture shall prepare a joint report 
detailing the contribution of the program toward achieving the pur-
poses of the Act and providing recommendations. Each report shall be 
submitted to the President not later than one hundred and eighty 
days following completion of that year's pilot program. The President 
shall transmit the report to the Congress for review and appropriate 
action. 
AUTHORIZATION OP FUNDS 
SEC. 5. For three years following enactment of this Act, there are 
hereby authorized to be appropriated amounts not to exceed $3,500,000 
annually to be made available to the Secretary of the Interior and the 
Secretary of Agriculture to carry out the purposes of this Act. 
Approved August 13, 1970. 
August 15, 1970 
[S. 3302] 
Defense Produc-
tion Act of 1950, 
amendment. 
Ante, p. 694. 
Infra, 
64 Stat. 815; 
67 Stat. 130. 
"Defense con-
tractor." 
82 Stat. 279. 
50 u s e app. 
2151-2167, 
Public Law 91-379 
AN ACT 
To amend the Defense Production Act of 1950, and for other purposes. 
Be it enacted hy the Senate and House of Represe'titatives of the 
United States of America in Congress assemhled^ 
TITLE I—DEFENSE PRODUCTION ACT AMENDMENTS 
§ lOL Extension of Act 
The first sentence of section 717(a) of the Defense Production Act 
of 1950 (50 U.S.C. App, 2166(a)) is amended— 
(1) by striking out "August 15, 1970'- and inserting in lieu 
thereof "June 30, 1972"; and 
(2) by striking out "section 714" and inserting in lieu thereof 
"sections 714 and 719". 
§102. Definitions 
Section 702 of the Defense Production Act of 1950 (50 U.S.C. App. 
2152) is amended— 
(1) by inserting "space," after "stockpiling," in subsection (d) ; 
and 
(2) by adding at the end thereof a new subsection as follows: 
"(f) The term 'defense contractor' means any person who enters 
into a contract with the United States for the production of material 
or the performance of services for the national defense." 
§ 103. Uniform cost-accounting standards 
Title VII of the Defense Production Act of 1950 is amended by 
adding at the end thereof a new section as follows: 
TOST-ACCOUNTING STANDARDS BOARD 
"SEC. 719. (a) There is established, as an agent of the Congress, a 
Cost-Accounting Standards Board which shall be independent of the 
executive departments and shall consist of the Comptroller General of 
the United States who shall serve as Chairman of the Board and four 
members to be appointed by the Comptroller General, Of the members 
ai^pointed to the Board, two, of whom one shall be particularly knowl-
edgeable about the cost accounting problems of small business, shall be 
from the accounting profession, one shall be representative of indus-
5 use 5101, 
5331, 5361,7501. 
84 STAT. ] 
PUBLIC LAW 91-379-AUG. 15, 1970 
797 
try, and one shall be from a department or agency of the Federal Gov-
ernment who shall be appointed with the consent of the head of the 
department or agency concerned. The term of office of each of the 
appointed members of the Board shall be four years, except that any 
member appointed to fill a vacancy in the Board shall serve for the 
remainder of the term for which his predecessor was appointed. Each 
member of the Board appointed from private life shall receive com-
pensation at the rate of one two-hundred-sixtieth of the rate prescribed 
for level IV of the Federal Executive Salary Schedule for each day 
so stat. 46i; 
(including traveltime) in which he is engaged in the actual perform- 
*Vusc ^
5
3
1
*
5 and 
ance of duties vested in the Board. 
note. 
"(b) The Board shall have the power to appoint, fix the compensa-
tion of, and remove an executive secretary and two additional staff 
members without regard to chapter 51, subchapters I I I and VI of 
chapter 53, and chapter 75 of title 5, United States Code, and those 
provisions of such title relating to appointment in the competitive serv-
ice. The executive secretary and the two additional staff members may 
be paid compensation at rates not to exceed the rates prescribed for 
levels IV and V of the Federal Executive Salary Schedule, respectively. 
"(c) The Board is authorized to appoint and fix the compensation 
of such other personnel as the Board deems necessary to carry out its 
functions. 
"(d) The Board may utilize personnel from the Federal Govern-
ment (with the consent of the head of the agency concerned) or 
appoint personnel from private life without regard to chapter 51, sub-
chapters III and VI of chap'ter 53, and chapter 75 of title 5, ITnited 
States Code, and those provisions of such title relating to appointment 
in the competitive service, to serve on advisory committees and task 
forces to assist the Board in carrying out its functions and responsibili-
ties under this section. 
"(e) Except as otherwise provided in subsection (a), members of the 
Board and officers or employees of other agencies of the Federal 
Government utilized under this section shall receive no compensation 
for their services as such but shall continue to receive the compensation 
of their regular positions. Appointees under subsection (d) from pri-
vate life shall receive compensation at rates fixed by the Board, not to 
exceed one two-hundred-sixtieth of the rate prescribed for level V in 
the Federal Executive Salary Schedule for each day (including travel- 83^313^8*64^^' 
time) in which they are engaged in the actual performance of their 
5 use 5
3
1
*
6 
duties as prescribed by the Board. While serving away from their ^"'^ "°t^' 
homes or regular place of business. Board members and other 
appointees serving on an intermittent basis under this section shall be 
allowed travel expenses in accordance with section 5703 of title 5, 
United States Code. 
83'stau'i9'*o!" 
"(f) All departments and agencies of the Government are author-
ized to cooperate with the Board and to furnish 
information, 
appropriate personnel with or without reimbursement, and such 
financial and other assistance as may be agreed to between the Board 
and the department or agency concerned. 
"(g) The Board shall from time to time promulgate cost-accounting promuita'tton 
standards designed to achieve uniformity and consistency in the 
cost-accounting principles followed by defense contractors and sub-
contractors under Federal contracts. Such promulgated standards 
shall be used by all relevant Federal agencies and by defense 
contractors and subcontractors in estimating, accumulating, and 
reporting costs in connection with the pricing, administration and 
settlement of all negotiated prime contract and subcontract national 
798 
PUBLIC LAW 91-379-AUG. 15, 1970 
[84 STAT. 
Cost-accounting 
methods, advance 
disclosure by 
defense contrac-
tors. 
Exemption, 
defense procurements with the United States in excess of $100,000, 
other than contracts or subcontracts where the price negotiated is 
based on (1) established catalog or market prices of commercial items 
sold in substantial quantities to the general public, or (2) prices set 
by law or regulation. In promulgating such standards the Board shall 
take into account the probable costs of implementation compared to 
the probable benefits. 
"(h) (1) The Board is authorized to make, promulgate, amend, and 
rescind rules and regulations for the implementation of cost-account-
ing standards promulgated under subsection (g). Such regulations 
shall require defense contractors and subcontractors as a condition of 
contracting to disclose in writing their cost-accounting principles, 
including methods of distinguishing direct costs from indirect costs 
and the basis used for allocating indirect costs, and to agree to a 
contract price adjustment, with interest, for any increased costs paid 
to the defense contractor by the United States because of the defense 
contractor's failure to comply with duly promulgated cost-accounting 
standards or to follow consistently his disclosed cost-accounting 
practices in pricing contract proposals and in accumulating and 
Interest ceiling, reporting coutract performance cost data. Such interest shall not 
exceed 7 per centum per annum measured from the time such payments 
were made to the contractor or subcontractor to the time such price 
adjustment is effected. If the parties fail to agree as to whether tlie 
defense contractor or subcontractor has complied with cost-accounting 
standards, the rules and regulations relating thereto, and cost adjust-
ments demanded by the United States, such disagreement will 
constitute a dispute under the contract dispute clause. 
''(2) The Board is authorized, as soon as practicable after the date 
of enactment of this section, to prescribe rules and regulations exempt-
ing from the requirements of this section such classes or categories of 
defense contractors or subcontractors under contracts negotiated in 
connection with national defense procurements as it determines, on 
the basis of the size of the contracts involved or otherwise, are appro-
priate and consistent with the purposes souglit to l)e achieved by this 
section. 
"(3) Cost-accounting standards promulgated under subsection (g) 
and rules and regulations prescribed under this subsection shall take 
effect not earlier than the expiration of the first period of sixty cal-
endar days of continuous session of the ('ongress following the date on 
which a co])y of the proposed standards, rules, or regulations is trans-
mitted to the Congress; if, between the date of transmittal and the 
expiration of such sixty-day period, there is not passed by the two 
Houses a concurrent resolution stating in substance that the Congress 
does not favor the proposed standards, rules, or regulations. For the 
purposes of this subparagraph, in the computation of the sixty-day 
period there shall be excluded the days on which either House is not in 
session because of adjournment of more than three days to a day certain 
or an adjournment of the Congress sine die. The provisions of this 
paragraph do not apply to modifications of cost accounting standards, 
rules, or regulations which have become effective in conformity with 
those provisions. 
"(i) (A) Prior to the promulgation under this section of rules, reg-
ulations, cost-accounting standards, and modifications thereof, notice 
of the action proposed to be taken, including a description of the terms 
and substance thereof, shall be published in the Federal Register. All 
l)iirties affected thereby shall be afforded a i^eriod of not less than 
thirty days after such publication in which to submit their views and 
comments with respect to the action proposed to be taken. After full 
Proposed 
standards, trans' 
mittal to 
Congress. 
Publication in 
Federal Register 
84 STAT.] 
PUBLIC LAW 91-379-AUG. 15, 1970 
799 
consideration of the views and comments so submitted the Board may 
])romii]grtte rules, remilations, cost-accounting standards, and modifi-
cations thereof which shall have the full force and effect of law and 
shall become effective not later than the start of the second fiscal quar-
ter beginning after the expiration of not less than thirty days after 
publication in the Federal Register. 
"(B) The functions exercised under this section are excluded from 
the operation of sections 551, 553-559. and 701-706 of title 5, LTnited 
States Code. 
"(C) The provisions of paragraph (A) of this subsection shall not 
be applicable to rules and regulations prescribed by the Board pursu-
ant to subsection (h) (2). 
"(j) For the purpose of detennining whether a defense contractor 
or subcontractor has complied with duly promulgated cost-accounting 
standards and has followed consistently his disclosed cost-accounting 
l)i-actices, any authorized representative of the head of the agency 
concerned, of the Board, or of the Comptroller General of the United 
States shall have the right to examine and make copies of any docu-
ments, papers, or records of such contractor or subcontractor relating 
to compliance with such cost-ac<?ounting standards and principles. 
"(k) The Board shall report to the Congress, not later than 
twenty-four months after the date of enactment of this section, 
concerning its progress in promulgating cost-accounting standards 
under subsection (g) and rules and regulations under subsection (h). 
Thereafter, tlie Board shall make an annual report to the Congress 
with respect to its activities and operations, together with such recom-
mendations as it deems appropriate. 
"(1) There are authorized to be appropriated such sums as may be 
necessary to carry out the provisions of tins section." 
§ 104. Loan guarantees 
Section 801 of the Defense Production Act of 1950 (50 U.S.C. App. 
2091) is amended by adding at the end thereof a new subsection as 
follows: 
"(e) (1) P^xcept witli the approval of the Congress, tlie maximum 
obligation of any guaranteeing agency under any loan, discount, 
advance, or commitment in connection therewitli, entered into under 
this section shall not exceed $20,000,000. 
"(2) The authority conferred by this section shall not be used 
l)rimarily to pre\ent the financial msohency or bankruptcy of any 
person, unless 
"(A) the President certifies that the insolvency or bankruptcy 
would have a direct and substantially adverse effect upon defense 
j)i'oduction; and 
"(B) a copy of such certification, together with a detailed 
justification thereof, is transmitted to the (^ongress and to the 
Committees on Banking and Currency of the respective Houses 
at least ten days prior to the exercise of that authority for such 
use." 
80 Stat. 381, 
392. 
Records, 
availability. 
Report to 
Congress. 
Appropriation. 
64 Stat. 800; 
67 Stat. 129. 
Limitations. 
TITLE II—(^OST OF LIVING STABILIZATION 
§ 201. Short title 
This title may be cited as the "Economic Stabilization Act of 1970'' 
§ 202. Presidential authority 
The President is authorized to issue such orders and regulations as 
he may deem appropriate to stabilize prices, rents, wages, and salaries 
at levels not less than those prevailing on May 25, 1970. Such orders 
Economic 
Stabilization Act 
of 1970. 
Standby con-
trols. 
800 
PUBLIC LAW 91-380-AUG. 18, 1970 
[84 STAT. 
and regulations may provide for the making of snch adjustments as 
may be necessary to prevent gross inequities. 
§203. Delegation 
The President may delegate the performance of any function under 
this title to such officers, departments, and agencies of the United 
States as he may deem appropriate. 
§204. Penalty 
Whoever willfully violates any order or regulation under this title 
shall be fined not more than $5,000. 
§205. Injunctions 
Whenever it appears to any agency of the United States, authorized 
by the President to exercise the authority contained in this section to 
enforce orders and regulations issued under this title, that any person 
has engaged, is engaged, or is about to engage in any acts or practices 
constituting a violation of any regulation or order under this title, it 
may in its discretion bring an action, in the proper district court of the 
United States or the proper United States court of any territory or 
other place subject to the jurisdiction of the United States, to enjoin 
such acts or practices, and upon a proper showing a permanent or 
temporary injunction or restraining order shall be granted without 
bond. Upon application of the agency, any such court may also issue 
mandatory injunctions commanding any pei-son to comply with any 
regulation or order under this title. 
§206. Expiration 
Post. p. 1468. 
"pi^j, authority to issue and enforce orders and regulations under this 
title expires at midnight February "28, 1971, but such expiration shall 
iiot atfect any proceeding under section 204 for a violation of any such 
ordei' or regulation, or for the punishment for contempt committed in 
the violation of any injunction issued under section 205, connnitted 
prior to March 1, 1071. ' 
Approved August 15, 1970. 
[Public Law 91-381 approved August 17, 1970.] 
Public Law 91-380 
AN ACT 
August 18, 1970 
[H. R. 16916] 
Making appropriations for the Office of Education for tlie fiscal year ending 
June 30, 1971, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of the 
Office of Edu- 
United States of America In Conqress assembled^ That the following 
cation Appropri- 
• ' . 
^ 
.
• 
, 
. ~ 
ation Act, 1971. 
suuis are appropriated, out oi any money m the ireasury not otherwise 
ai)propriated, for the Office of Education for the fiscal year ending 
Jmie 80, 1971, and for other purposes, namely: