RENEGOTIATION OF AQUATONE CONTRACTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81B00878R000800050009-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: January 27, 2001
• Sequence Number: 9
• Publication Date: September 20, 1957
• Content Type: MF

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20 September 1957
Contracting Officer
Renegotiation of AQUATONE Contracts
REFERENCE SAPC 19291 dated 12 September 1957
1. 1efereneed memorandum, together with attachment, which
th, request our views as to the applicability of
Len Act of 1951 to Contract Y.A.501 and contracts
2, and A103. You note that we had advised you in April
the Renegotiation Act would not apply to Contract SP.1913
which was for AQUATONE procurement and utilised AQUATONE funds,
subject contracts involve the commingling of AQUATONE
with Air Force funds and, in sate instances, Air Force funds
levy funds.
2. Our April 1956 memorandum (SAFC 5778) recited that the
basis for our ruling therein to the effect that the Act would not
apply was that by the terms of the Act, as amended (50 USCA section
1211 et.seq.), it applies only to all contracts and related contracts
entered into 'by those departments named in the Act or "by'the President
by Executive Order issued pursuant thereto and that this Agency was
not among those named either by the Act or by rxecutive Order. A
current review likewise fails to reveal that this Agency has been
so named and wit would thirk, therefore, that our April 1956 opinion
would be equally accurate today with respect to Agency contracts
utilising Agency funds for Agency Procurement.
3. 144 would think moreover that the fact that the procurement
for another department, including departments which are named in
the Renegotiation Act, would not cause a contrary conclusion in the
AWATONE situation. The language of the appropriate provision, of
the Renegotiation Act (50 USCA section 1212) provides that the Act
than spay "to ell contracts with the departments" designated by
either of the required manners. The language: dose not hinge an tbri
purpose of the contract nor on the name of the agency or departneut
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procurement is undertaken, nor onthe pource of
since the decision pursuant to*di*
procurement far the other departments vas
deaiston not to permit the departments
far themselves, the current program is
procurement undertaken, as the IDICI hes
tional interest. it to our opinion, therefore,
contrecte, and the sUbcontracts under them,
Renegotiation Act.
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