204 ORGANIZING SCIENTIFIC RESEARCH FOR WAR 



NAVY DEPARTMENT 



Bureau of Ordnance 



1941 $25,000.00 



1942 25,000.00 



1943 75,000.00 



Navy Department Total $125,000.00 



WAR DEPARTMENT 



Quartermaster Corps 



1941 $10,000.00 



Army Medical Center 



1942 $9,000.00 



Ordnance Department 



1943 $30,000.00 



War Department Total $49,000.00 



U. S. COAST GUARD 



1945 $7,776-54 



U. S. Coast Guard Total $7,776-54 



TENNESSEE VALLEY AUTHORITY 



1945 :tt'9,252.i4 



Tennessee Valley Authority Total $9,252.14 



Grand total of funds transferred by OSRD to other Federal Agencies for 

 research and development $12,627,348.48. 



Policy with Respect to Profit and Loss on Contracts 



In a memorandum of June 7, 1943, to Stewart, Bush discussed the poli- 

 cies concerning profits under OSRD contracts. He reviewed the reasons for 

 the original adoption of the "no-profit-no-loss" theory in OSRD research 

 and development contracts and noted its general acceptance by OSRD con- 

 tractors. He then continued that as OSRD projects moved into pilot plant 

 production and experimental quantity production, prospective OSRD con- 

 tractors were increasingly reluctant to accept OSRD cost-without-profit con- 

 tracts, arguing that the facts did not warrant the extension to their cases of 

 the "no-profit-no-loss" policy adopted for research and development contracts. 



