Renegotiation Reform Act

(Reported to House from the Committee on Banking, Finance and Urban Affairs with amendment, H. Rept. 95-270)

Renegotiation Reform Act - Amends the Renegotiation Act of 1951 to limit the terms of office of members of the Renegotiation Board to five years. Sets the rate of compensation for the chairman of the Board at the rate of pay for level IV of the Executive Schedule and for the other members of the Board at the rate for level V of the Executive Schedules.

Prohibits the use of the percentage-of-completion method of accounting for renegotiating contracts under which the Board finds excessive profits. Authorizes the Board to waive the product line requirement only if the Board formally determines that such waiver is in the public interest, and that no useful service would be served by product line renegotiation. Specifies other criteria to be used in contract renegotiation. Stipulates that the prohibition against the percentage-of-completion method of accounting be effective beginning in fiscal year 1979.

Eliminates the exemptions from the provisions of the Act currently afforded products of gas and oil wells and standard commercial services. Repeals provisions of the Act allowing any contractor or subcontractor subject to this Act to waive exemptions from the Act for standard commercial articles. Requires all such contractors and subcontractors to furnish complete cost and pricing data on all articles for which he claims exemption. Requires, with certain exceptions, that all such data be kept confidential. Requires the Board to conduct a study of such cost and pricing data and report to Congress on the profitability of such exempted items.

Raises the minimum amount of contracts subject to renegotiation under the Act from $1,000,000 to $5,000,000 and of subcontracts subject to renegotiation from $25,000 to $50,000.

Changes from criminal to civil fines imposed under the Act for failure to file or for filing misleading information required to be filed under the Act.

Declares the Chairman of the Board to be the Board's chief executive officer and confers on him direction of all executive functions of the Board. Grants the Board the power to issue subpoenas. Requires the Board to audit all financial statements submitted to it pursuant to the Act. Directs the Board to report annually to the Secretary of each Department with respect to the contractors or subcontractors who have received or accrued during the past fiscal year amounts under contracts with such Department or subcontracts under contracts with such Department. Requires the General Accounting Office to review the activities of the Board annually and to submit a report of its findings to Congress. Makes provisions for refunds owned to contractors and subcontractors.