An Act to extend the Renegotiation Act of 1951, and for other purposes
PL 86-89 (H.R.7086), enacted 07/13/1959

210 
PUBLIC LAW 86-89-JULY 13, 1959 
[73 STAT. 
T I T L E IV—GENEEAL PROVISIONS 
ro "''a^da * '^ °' 
^^'^' ^^^' ^^ ^^^^ ^^ ^^^ appropriation contained in this Act, or of 
prop ag an a. 
^^^ funds available for expenditure by any individual, corporation, or 
agency included in this Act, shall be used for publicity or propaganda 
purposes designed to support or defeat legislation proposed or pending 
before Congress. 
Mi^eriafs^co^ 
SEC. 402. No part of any appropriation contained in this Act shall 
ference. 
be used to Day any expenses incident to or in connection with partici-
pation in tne International Materials Conference. 
This Act may be cited as the "Department of Commerce and Belated 
Short title. 
Act, 1960^ 
1959. 
Agencies Appropriation 
Approved July 13, 19 
Public Law 86-89 
July 13. 1959 
AN ACT 
[H. R. 7086] 
To extend the Renegotiation Act of 1951, and for other purposes. 
Be it enacted l>y the Senate and House of Representatives 
of the 
United States of America in Congress 
assembled, 
Renegotiation SECTION 1. EXTENSION. 
Act of 1951 ex* 
tension. 
' 
Section 102(c) (1) of the Kenegotiation Act of 1951, as amended (50 
72 Stat. 1789. 
XJ.S.C. App., scc. 1212(c) (1)), is amended by striking out "June 30, 
1959" and inserting in. lieu thereof "June 30,1962". 
SEC. 2. FIVE-YEAR LOSS CARRYFORWARD. 
Subsection (in) of section 103 of the Renegotiation Act of 1951, 
70 Stat. 786. 
as amended (50 tJ.S.C. App., sec. 1213 (m)), is amended— 
(1) By striking out the heading and inserting in lieu thereof 
the following: 
" (m) RENEGOTIATION Loss CARRYFORWARDS.—". 
(2) By striking out subparagraph (A) of paragraph (2) and 
inserting in lieu thereof the following: 
" (A) The term 'renegotiation loss deduction' means— 
"(i) for any fiscal year ending on or after December 
31, 1956, and before January 1, 1959, the sum of the 
renegotiation loss carryforwards to such fiscal year from 
the preceding two fiscal years; and 
"(ii) for any fiscal year ending after December 31, 
1958, the sum of the renegotiation loss carryforwards to 
such fiscal year from the preceding five fiscal years 
(excluding any fiscal year ending before December 31, 
1956)." 
(3) By striking out "CARRYFORWARDS.—^A" in paragraph (3) 
and inserting in lieu thereof the following: "CARRYFORWARDS TO 
1956, 1957, AND 1958.—For the purposes of paragraph (2) (A) 
(4) By adding at the end of such subsection the following new 
paragraph: 
"(4) AMOUNT OF CARRYFORWARDS TO FISCAL, YEARS ENDING AFTER 
1958.—For the purposes of paragraph (2)(A)(ii), a renegotia-
tion loss for any fiscal year (hereinafter in this paragraph re-
ferred to as the 'loss year') ending on or after December 31,1956, 
shall be a renegotiation loss carryforward to each of the five fiscal 
years following the loss year. The entire amount of such loss 
shall be carried to the first fiscal year succeeding the loss year. 
70 Stat. V91. 
73 S T A T . ] 
PUBLIC LAW 8 6 - 8 9 - J U L Y 13, 1959 
211 
The portion of such loss which shall be carried to each of the other 
four fiscal years shall be the excess, if any, of the amount of such 
loss over the sum of the profits derived from contracts with the 
Departments and subcontracts in each of the prior fiscal years to 
which such loss may be carried. For the purposes of the preced-
ing sentence, the profits derived from contracts with the Depart-
ments and subcontracts in any such prior fiscal year shall be com-
puted by determining the amount of the renegotiation loss deduc-
tion without regard to the renegotiation loss for the loss year or 
for any fiscal year thereafter, and the profits so computed shall 
not be considered to be less than zero." 
SEC. 3. GENERAL COUNSEL OF THE RENEGOTIATION BOARD. 
Section 107(c) of the Kenegotiation Act of 1951, as amended (50 
U.S.C. App., sec. 1217(c)), is amended by inserting before the first 
sentence thereof the following new sentence: "There shall be a General 
Counsel of the Renegotiation Board who shall be appointed by the 
Board without regard to the civil-service laws and regulations, and 
shall receive compensation at the rate of $19,000 per annum." 
SEC. 4. STUDIES OF PROCUREMENT POLICIES AND PRACTICES AND 
THE RENEGOTIATION ACT OF 1951. 
(a) (1) The Committee on Armed Services of the Senate, or any 
duly authorized subcommittee thereof, and the Committee on Armed 
Services of the House of Representatives, or any duly authorized sub-
committee thereof, are directed to make full and complete studies of 
the procurement policies and practices of the Department of Defense, 
the Department of the Air Force, the Department of the Army, and 
the Department of the Navy. Such studies shall include an examina-
tion of the experience of such Departments in the use of various 
methods of procurement and types of contractual instruments, with 
particular regard to the effectiveness thereof in achieving reasonable 
costs, prices, and profits. 
(2) Each committee shall, not later than September 30,1960, report 
Reports to con-
to its House the results of the study conducted by it pursuant to ^'*'^' 
paragraph (1) of this subsection, together with such recommenda-
tions as it deems necessary or desirable. 
Each committee shall make 
all material and data collected in the course of the study conducted 
by it available to the Joint Committee on Internal Revenue Taxation 
to assist it in making the study required by subsection (b). 
(b) (1) The Joint Committee on Internal Revenue Taxation, or 
any duly authorized subcommittee thereof, is directed to make a 
full and complete study of the Renegotiation Act of 1951, as amended, 
|5 s^a|.^7. ^^ ^ ^ 
and of the policies and practices of the Renegotiation Board. 
note. ^^^^' 
(2) The Joint Committee shall, not later than March 31, 1961, gresT.""*' *° ^°"" 
report to the Senate and the House of Representatives the results of 
the study conducted pursuant to paragraph (1) of this subsection, 
together with such recommendations as it deems necessary or desirable. 
(3) For the purpose of making the study and report required by 
paragraph (1) of this subsection, the Joint Committee, and the Chief 
of Staff of the Joint Committee, may exercise any of the powers 
conferred upon the Joint Committee and the Chief of Staff of the 
Joint Committee by sections 8021 and 8023 of the Internal Revenue 
Code of 1954. The provisions of section 8023 (b) of such Code shall Q^A stat. 927. 
apply to requests made under the authority of this paragraph to ^
^
2
^
6 use 8021, 
the same extent as in the case of other requests made under the 
authority of section 8023(a) of such Code. 
Approved July 13, 1959. 
8023.