§ 8661. Classification

The President may establish, and from time to time modify, as the needs of the service require, a classification of naval vessels.

§ 8662. Naming

• (a) Not more than one vessel of the Navy may have the same name.
• (b) Each battleship shall be named for a State. However, if the names of all the States are in use, a battleship may be named for a city, place, or person.
• (c) The Secretary of the Navy may change the name of any vessel bought for the Navy.

§ 8663. Number in service in time of peace

In time of peace, the President may keep in service such vessels of the Navy as are required and keep the rest in reserve.

§ 8664. Suspension of construction in case of treaty

In case of a treaty for the limitation of naval armament to which the United States is a signatory, the President may suspend so much of the authorized naval construction as is necessary to bring the naval vessels of the United States within the limitations agreed upon. Such a suspension does not apply to vessels under construction at the time the suspension is made.

§ 8667. Changing category or type: limitations

Unless they have been specifically made available for the purpose, funds appropriated for the repair or alteration of naval vessels may not be used to make repairs or alterations of any vessel that would change its category or type.

§ 8669. Contracts: applicability of chapter 65 of title 41

Each contract for the construction, alteration, furnishing, or equipping of a naval vessel is subject to chapter 65 of title 41 unless the President determines that this requirement is not in the interest of national defense.

§ 8669a. Construction of combatant and escort vessels and assignment of vessel projects

• (a) The assignment of naval vessel conversion, alteration, and repair projects shall be based on economic and military considerations and may not be restricted by a requirement that certain parts of naval shipwork be assigned to a particular type of shipyard or geographical area or by a similar requirement.
• (b) In evaluating bids or proposals for a contract for the overhaul, repair, or maintenance of a naval vessel, the Secretary of the Navy shall, in determining the cost or price of work to be performed in an area outside the area of the homeport of the vessel, consider foreseeable costs of moving the vessel and its crew from the homeport to the outside area and from the outside area back to the homeport at the completion of the contract.
• (c)
  • (1) Before issuing a solicitation for a contract for short-term work for the overhaul, repair, or maintenance of a naval vessel, the Secretary of the Navy shall determine if there is adequate competition available among firms able to perform the work at the homeport of the vessel. If the Secretary determines that there is adequate competition among such firms, the Secretary—
    • (A) shall issue such a solicitation only to firms able to perform the work at the homeport of the vessel; and
    • (B) may not award such contract to a firm other than a firm that will perform the work at the homeport of the vessel.
  • (2) Paragraph (1) applies notwithstanding subsection (a) or any other provision of law.
  • (3) Paragraph (1) does not apply in the case of voyage repairs.
  • (4) In this subsection, the term “short-term work” means work that will be for a period of 10 months or less.

§ 8669b. Senior Technical Authority for each naval vessel class

• (a)
  • (1) The Secretary of the Navy shall designate, in writing, a Senior Technical Authority for each class of naval vessels as follows:
    • (A) In the case of a class of vessels which has received Milestone A approval, an approval to enter into technology maturation and risk reduction, or an approval to enter into a subsequent Department of Defense or Department of the Navy acquisition phase as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 2020, not later than 30 days after such date of enactment.
    • (B) In the case of any class of vessels which has not received any approval described in subparagraph (A) as of such date of enactment, at or before the first of such approvals.
  • (2) Each individual designated as a Senior Technical Authority under paragraph (1) shall be an employee of the Navy in the Senior Executive Service in an organization of the Navy that—
    • (A) possesses the technical expertise required to carry out the responsibilities specified in subsection (b); and
    • (B) operates independently of chains-of-command for acquisition program management.
  • (3) Each Senior Technical Authority shall be designated for a fixed term, not shorter than the time anticipated to establish demonstrated successful performance of the class of vessels concerned in accordance with its approved capabilities document, as determined by the Secretary at the time of designation.
  • (4) If an individual designated as a Senior Technical Authority voluntarily departs the position before demonstrated successful performance of the class of vessels concerned, the Secretary shall designate, in writing, a replacement, and shall notify, in writing, the congressional defense committees not later than 90 days after such departure.
  • (5) An individual may be removed involuntarily from designation as a Senior Technical Authority only by the Secretary. Not later than 15 days after the involuntary removal of an individual from such designation, the Secretary shall notify, in writing, the congressional defense committees of the removal, including the reasons for the removal. Not later than 90 days after the involuntary removal, the Secretary shall designate, in writing, a replacement, and shall notify, in writing, the congressional defense committees of such designation.
  • (6) Subject to paragraphs (4) and (5), the Secretary may reassign a Senior Technical Authority or remove an individual from designation as a Senior Technical Authority in furtherance of Department of the Navy mission needs.
• (b) Each Senior Technical Authority shall be responsible for, and have the authority to, establish, monitor, and approve technical standards, tools, and processes for the class of naval vessels for which designated under this section in conformance with applicable laws and Department of Defense and Department of the Navy policies, requirements, architectures, and standards.
• (c)
  • (1) On or after January 1, 2021 , funds authorized to be appropriated for Shipbuilding and Conversion, Navy or Other Procurement, Navy may not be obligated for the first time on the lead vessel in a class of naval vessels unless the Secretary of the Navy certifies as described in paragraph (2).
  • (2) The certification on a class of naval vessels described in this paragraph is a certification containing each of the following:
    • (A) The name or names of the individual or individuals designated as the Senior Technical Authority for such class of vessels, and the qualifications and professional biography or biographies of the individual or individuals so designated.
    • (B) A description by the Senior Technical Authority of the systems engineering, technology, and ship integration risks for such class of vessels.
    • (C) The designation by the Senior Technical Authority of each critical hull, mechanical, electrical, propulsion, and combat system of such class of vessels, including systems relating to power generation, power distribution, and key operational mission areas.
    • (D) The date on which the Senior Technical Authority approved the systems engineering, engineering development, and land-based engineering and testing plans for such class of vessels.
    • (E) A description by the Senior Technical Authority of the key technical knowledge objectives and demonstrated system performance of each plan approved as described in subparagraph (D).
    • (F) A determination by the Senior Technical Authority that such plans are sufficient to achieve thorough technical knowledge of critical systems of such class of vessels before the start of detail design and construction.
    • (G) A determination by the Senior Technical Authority that actual execution of activities in support of such plans as of the date of the certification have been and continue to be effective and supportive of the acquisition schedule for such class of vessels.
    • (H) A description by the Senior Technical Authority of other technology maturation and risk reduction efforts not included in such plans for such class of vessels taken as of the date of the certification.
    • (I) A certification by the Senior Technical Authority that each critical system covered by subparagraph (C) has been demonstrated through testing of a prototype or identical component in its final form, fit, and function in a realistic environment.
    • (J) A determination by the Secretary that the plans approved as described in subparagraph (D) are fully funded and will be fully funded in the future-years defense program for the fiscal year beginning in the year in which the certification is submitted.
    • (K) A determination by the Secretary that the Senior Technical Authority will approve, in writing, the ship specification for such class of vessels before the request for proposals for detail design, construction, or both, as applicable, is released.
  • (3) The certification required by this subsection with respect to a class of naval vessels shall be submitted, in writing, to the congressional defense committees not fewer than 30 days before the Secretary obligates for the first time funds authorized to be appropriated for Shipbuilding and Conversion, Navy or Other Procurement, Navy for the lead vessel in such class of naval vessels.
• (d) In this section:
  • (1) The term “class of naval vessels”—
    • (A) means any group of similar undersea or surface craft procured with Shipbuilding and Conversion, Navy or Other Procurement, Navy funds, including manned, unmanned, and optionally-manned craft; and
    • (B) includes—
      • (i) a substantially new class of craft (including craft procured using “new start” procurement); and
      • (ii) a class of craft undergoing a significant incremental change in its existing class (such as a next “flight” of destroyers or next “block” of attack submarines).
  • (2) The term “future-years defense program” has the meaning given that term in section 221 of this title .
  • (3) The term “Milestone A approval” has the meaning given that term in section 2431a of this title .

§ 8670. Contracts for nuclear ships: sales of naval shipyard articles and services to private shipyards

The conditions set forth in section 2208(j)(1)(B) of this title and subsections (a)(1) and (c)(1)(A) of section 2563 of this title shall not apply to a sale by a naval shipyard of articles or services to a private shipyard that is made at the request of the private shipyard in order to facilitate the private shipyard’s fulfillment of a Department of Defense contract with respect to a nuclear ship. This section does not authorize a naval shipyard to construct a nuclear ship for the private shipyard, to perform a majority of the work called for in a contract with a private entity, or to provide articles or services not requested by the private shipyard.

§ 8671. Determination of vessel delivery dates

• (a) The delivery of a covered vessel shall be deemed to occur on the date on which—
  • (1) the Secretary of the Navy determines that the vessel is assembled and complete; and
  • (2) custody of the vessel and all systems contained in the vessel transfers to the Navy.
• (b) The delivery dates of covered vessels shall be included—
  • (1) in the materials submitted to Congress by the Secretary of Defense in support of the budget of the President for each fiscal year (as submitted to Congress under section 1105(a) of title 31 , United States Code); and
  • (2) in any relevant Selected Acquisition Report submitted to Congress under section 2432 of this title .
• (c) A covered vessel may not be listed in the Naval Vessel Register or other fleet inventory measures as a battle force ship until the delivery date specified in subsection (a).
• (d) In this section:
  • (1) The term “covered vessel” means any vessel of the Navy that is under construction or constructed using amounts authorized to be appropriated for the Department of Defense for shipbuilding and conversion, Navy.
  • (2) The term “battle force ship” means the following:
    • (A) A commissioned United States Ship warship capable of contributing to combat operations.
    • (B) A United States Naval Ship that contributes directly to Navy warfighting or support missions.

§ 8673. Model Basin; investigation of hull designs

The Secretary of the Navy may authorize experiments to be made at the Model Basin for private persons. The costs of experiments made for private persons shall be paid by those persons under regulations prescribed by the Secretary. The results of private experiments are confidential and may not be divulged without the consent of the persons for whom they are made. However, the data obtained from such experiments may be used by the Secretary for governmental purposes, subject to the patent laws of the United States.

§ 8674. Examination of vessels; striking of vessels from Naval Vessel Register

• (a)
  • (1) The Secretary of the Navy shall designate boards of naval officers to examine naval vessels, including unfinished vessels, for the purpose of making a recommendation to the Secretary as to which vessels, if any, should be stricken from the Naval Vessel Register. Each vessel shall be examined at least once every three years if practicable.
  • (2)
    • (A) Except as provided in subparagraph (B), any naval vessel examined under this section on or after January 1, 2020 , shall be examined with minimal notice provided to the crew of the vessel.
    • (B) Subparagraph (A) shall not apply to a vessel undergoing necessary trials before acceptance into the fleet.
• (b) A board designated under subsection (a) shall submit to the Secretary in writing its recommendations as to which vessels, if any, among those it examined should be stricken from the Naval Vessel Register.
• (c) If the Secretary concurs with a recommendation by a board that a vessel should be stricken from the Naval Vessel Register, the Secretary shall strike the name of that vessel from the Naval Vessel Register.
• (d)
  • (1) Not later than March 1 each year, the board designated under subsection (a) shall submit to the congressional defense committees a report setting forth the following:
    • (A) An overall narrative summary of the material readiness of Navy ships as compared to established material requirements standards.
    • (B) The overall number and types of vessels inspected during the preceding fiscal year.
    • (C) For in-service vessels, material readiness trends by inspected functional area as compared to the previous five years.
  • (2) Each report under this subsection shall be submitted in an unclassified form that is releasable to the public without further redaction.
  • (3) No report shall be required under this subsection after October 1, 2021 .

§ 8675. Vessels stricken from Naval Vessel Register: sale

• (a) The Secretary of the Navy shall appraise each vessel stricken from the Naval Vessel Register under section 8674 of this title .
• (b) If the Secretary considers that the sale of the vessel is in the national interest, the Secretary may sell the vessel. Any such sale shall be in accordance with regulations prescribed by the Secretary for the purposes of this section.
• (c)
  • (1) A vessel stricken from the Naval Vessel Register and not subject to disposal under any other law may be sold under this section.
  • (2) In such a case, the Secretary may—
    • (A) sell the vessel to the highest acceptable bidder, regardless of the appraised value of the vessel, after publicly advertising the sale of the vessel for a period of not less than 30 days; or
    • (B) subject to paragraph (3), sell the vessel by competitive negotiation to the acceptable offeror who submits the offer that is most advantageous to the United States (taking into account price and such other factors as the Secretary determines appropriate).
  • (3) Before entering into negotiations to sell a vessel under paragraph (2)(B), the Secretary shall publish notice of the intention to do so in the Commerce Business Daily sufficiently in advance of initiating the negotiations that all interested parties are given a reasonable opportunity to prepare and submit proposals. The Secretary shall afford an opportunity to participate in the negotiations to all acceptable offerors submitting proposals that the Secretary considers as having the potential to be the most advantageous to the United States (taking into account price and such other factors as the Secretary determines appropriate).
• (d) This section does not apply to a vessel the disposal of which is authorized by subtitle I of title 40 and division C (except sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41, if it is to be disposed of under those provisions.

§ 8675a. Vessels stricken from Naval Vessel Register: contracts for dismantling on net-cost basis

• (a) When the Secretary of the Navy awards a contract for the dismantling of a vessel stricken from the Naval Vessel Register, the Secretary may award the contract on a net-cost basis.
• (b) When the Secretary awards a contract on a net-cost basis under subsection (a), the Secretary shall provide in the contract that the contractor may retain the proceeds from the sale of scrap and reusable items removed from the vessel dismantled under the contract.
• (c) In this section:
  • (1) The term “net-cost basis”, with respect to a contract for the dismantling of a vessel, means that the amount to be paid to the contractor under the contract for dismantling and for removal and disposal of hazardous waste material is discounted by the offeror’s estimate of the value of scrap and reusable items that the contractor will remove from the vessel during performance of the contract.
  • (2) The term “scrap” means personal property that has no value except for its basic material content.
  • (3) The term “reusable item” means a demilitarized component or a removable portion of a vessel or equipment that the Secretary of the Navy has identified as excess to the needs of the Navy but which has potential resale value on the open market.

§ 8676. Vessels stricken from Naval Vessel Register; captured vessels: conveyance by donation

• (a) The Secretary of the Navy may convey, by donation, all right, title, and interest to any vessel stricken from the Naval Vessel Register or any captured vessel, for use as a museum or memorial for public display in the United States, to—
  • (1) any State, the District of Columbia, any Commonwealth or possession of the United States, or any municipal corporation or political subdivision thereof; or
  • (2) any nonprofit entity.
• (b)
  • (1) The United States and all departments and agencies thereof, and their officers and employees, shall not be liable at law or in equity for any injury or damage to any person or property occurring on a vessel donated under this section.
  • (2) Notwithstanding any other law, the Department of Defense, and the officers and employees of the Department of Defense, shall have no responsibility or obligation to make, engage in, or provide funding for, any improvement, upgrade, modification, maintenance, preservation, or repair to a vessel donated under this section.
• (c) Any transfer of a vessel under this section, the maintenance and preservation of that vessel as a museum or memorial, and the ultimate disposal of that vessel, including demilitarization of Munitions List items at the end of the useful life of the vessel as a museum or memorial, shall be made at no cost to the Department of Defense.
• (d) Nothing in this section shall affect the applicability of Federal, State, interstate, and local environmental laws and regulations, including the Toxic Substances Control Act ( 15 U.S.C. 2601 et seq.) and the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ( 42 U.S.C. 9601 et seq.), to the Department of Defense or to a donee.
• (e) In this section:
  • (1) The term “nonprofit entity” means any entity qualifying as an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986.
  • (2) The term “Munitions List” means the United States Munitions List created and controlled under section 38 of the Arms Export Control Act ( 22 U.S.C. 2778 ).
  • (3) The term “donee” means any entity receiving a vessel pursuant to subsection (a).

§ 8676a. Vessels stricken from Naval Vessel Register: use for experimental purposes

• (a) The Secretary of the Navy may use for experimental purposes any vessel stricken from the Naval Vessel Register.
• (b)
  • (1) Before using a vessel for an experimental purpose pursuant to subsection (a), the Secretary shall carry out such stripping of the vessel as is practicable and such environmental remediation of the vessel as is required for the use of the vessel for experimental purposes.
  • (2) Material and equipment stripped from a vessel under paragraph (1) may be sold by the contractor or by a sales agent approved by the Secretary.
  • (3) Amounts received as proceeds from the stripping of a vessel pursuant to this subsection shall be credited to appropriations available for the procurement of services needed for such stripping and for environmental remediation required for the use of the vessel for experimental purposes. Amounts received in excess of amounts needed for reimbursement of those costs shall be deposited into the account from which the stripping and environmental remediation expenses were incurred and shall be available for stripping and environmental remediation of other vessels to be used for experimental purposes.
• (c) In this section, the term “use for experimental purposes”, with respect to a vessel, includes use of the vessel in a Navy sink exercise or for target purposes.

§ 8676b. Vessels stricken from Naval Vessel Register: transfer by gift or otherwise for use as artificial reefs

• (a) The Secretary of the Navy may transfer, by gift or otherwise, any vessel stricken from the Naval Vessel Register to any State, Commonwealth, or possession of the United States, or any municipal corporation or political subdivision thereof, for use as provided in subsection (b).
• (b) An agreement for the transfer of a vessel under subsection (a) shall require that—
  • (1) the recipient use, site, construct, monitor, and manage the vessel only as an artificial reef in accordance with the requirements of the National Fishing Enhancement Act of 1984 ( 33 U.S.C. 2101 et seq.), except that the recipient may use the artificial reef to enhance diving opportunities if that use does not have an adverse effect on fishery resources (as that term is defined in section 3(14) of the Magnuson-Stevens Fishery Conservation and Management Act ( 16 U.S.C. 1802(14) )); and
  • (2) the recipient obtain, and bear all responsibility for complying with, applicable Federal, State, interstate, and local permits for using, siting, constructing, monitoring, and managing the vessel as an artificial reef.
• (c) The Secretary shall ensure that the preparation of a vessel transferred under subsection (a) for use as an artificial reef is conducted in accordance with—
  • (1) the environmental best management practices developed pursuant to section 3504(b) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 ( Public Law 107–314 ; 16 U.S.C. 1220 note); and
  • (2) any applicable environmental laws.
• (d) The Secretary may share with the recipient of a vessel transferred under subsection (a) any costs associated with transferring the vessel under that subsection, including costs of the preparation of the vessel under subsection (c).
• (e) A State, Commonwealth, or possession of the United States, or any municipal corporation or political subdivision thereof, may be the recipient of more than one vessel transferred under subsection (a).
• (f) The Secretary may require such additional terms and conditions in connection with a transfer authorized by subsection (a) as the Secretary considers appropriate.
• (g) Nothing in this section shall be construed to establish a preference for the use as artificial reefs of vessels stricken from the Naval Vessel Register in lieu of other authorized uses of such vessels, including the domestic scrapping of such vessels, or other disposals of such vessels, under this chapter or other applicable authority.

§ 8677. Disposals to foreign nations

• (a) A naval vessel that is in excess of 3,000 tons or that is less than 20 years of age may not be disposed of to another nation (whether by sale, lease, grant, loan, barter, transfer, or otherwise) unless the disposal of that vessel, or of a vessel of the class of that vessel, is authorized by law enacted after August 5, 1974 . A lease or loan of such a vessel under such a law may be made only in accordance with the provisions of chapter 6 of the Arms Export Control Act ( 22 U.S.C. 2796 et seq.) or chapter 2 of part II of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2311 et seq.). In the case of an authorization by law for the disposal of such a vessel that names a specific vessel as being authorized for such disposal, the Secretary of Defense may substitute another vessel of the same class, if the vessel substituted has virtually identical capabilities as the named vessel. In the case of an authorization by law for the disposal of vessels of a specified class, the Secretary may dispose of vessels of that class pursuant to that authorization only in the number of such vessels specified in that law as being authorized for disposal.
• (b)
  • (1) A naval vessel not subject to subsection (a) may be disposed of to another nation (whether by sale, lease, grant, loan, barter, transfer, or otherwise) in accordance with applicable provisions of law, but only after—
    • (A) the Secretary of the Navy notifies the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives in writing of the proposed disposition; and
    • (B) 30 days of continuous session of Congress have expired following the date on which such notice is sent to those committees.
  • (2) For purposes of paragraph (1)(B), the continuity of a session of Congress is broken only by an adjournment of the Congress sine die, and the days on which either House is not in session because of an adjournment of more than 3 days to a day certain are excluded in the computation of such 30-day period.

§ 8678. Chief of Naval Operations: certification required for disposal of combatant vessels

Notwithstanding any other provision of law, no combatant vessel of the Navy may be sold, transferred, or otherwise disposed of unless the Chief of Naval Operations certifies that it is not essential to the defense of the United States.

§ 8679. Construction of vessels in foreign shipyards: prohibition

• (a) Except as provided in subsection (b), no vessel to be constructed for any of the armed forces, and no major component of the hull or superstructure of any such vessel, may be constructed in a foreign shipyard.
• (b)
  • (1) The President may authorize exceptions to the prohibition in subsection (a) when the President determines that it is in the national security interest of the United States to do so.
  • (2) The President shall transmit notice to Congress of any such determination, and no contract may be made pursuant to the exception authorized until the end of the 30-day period beginning on the date on which the notice of the determination is received by Congress.
• (c) An inflatable boat or a rigid inflatable boat, as defined by the Secretary of the Navy, is not a vessel for the purpose of the restriction in subsection (a).

§ 8680. Overhaul, repair, etc. of vessels in foreign shipyards: restrictions

• (a)
  • (1) A naval vessel the homeport of which is in the United States or Guam may not be overhauled, repaired, or maintained in a shipyard outside the United States or Guam, other than in the case of voyage repairs.
  • (2)
    • (A) Notwithstanding paragraph (1) and subject to subparagraph (B), in the case of a naval vessel classified as a Littoral Combat Ship and operating on deployment, corrective and preventive maintenance or repair (whether intermediate or depot level) and facilities maintenance may be performed on the vessel—
      • (i) in a foreign shipyard;
      • (ii) at a facility outside of a foreign shipyard; or
      • (iii) at any other facility convenient to the vessel.
    • (B)
      • (i) Corrective and preventive maintenance or repair may be performed on a vessel as described in subparagraph (A) if the work is performed by United States Government personnel or United States contractor personnel.
      • (ii) Facilities maintenance may be performed by a foreign contractor on a vessel as described in subparagraph (A) only as approved by the Secretary of the Navy.
    • (C) In this paragraph:
      • (i) The term “corrective and preventive maintenance or repair” means—
        • (I) maintenance or repair actions performed as a result of a failure in order to return or restore equipment to acceptable performance levels; and
        • (II) scheduled maintenance or repair actions to prevent or discover functional failures.
      • (ii) The term “facilities maintenance” means—. 1 1 So in original. The period probably should not appear.
        • (I) the effort required to provide housekeeping services throughout the ship;
        • (II) the effort required to perform coating maintenance and repair to exterior and interior surfaces due to normal environmental conditions; and
        • (III) the effort required to clean mechanical spaces, mission zones, and topside spaces.
• (b)
  • (1) In the case of a naval vessel the homeport of which is not in the United States (or a territory of the United States), the Secretary of the Navy may not during the 15-month period preceding the planned reassignment of the vessel to a homeport in the United States (or a territory of the United States) begin any work for the overhaul, repair, or maintenance of the vessel that is scheduled to be for a period of more than six months.
  • (2) In the case of a naval vessel the homeport of which is in the United States (or a territory of the United States), the Secretary of the Navy shall during the 15-month period preceding the planned reassignment of the vessel to a homeport not in the United States (or a territory of the United States) perform in the United States (or a territory of the United States) any work for the overhaul, repair, or maintenance of the vessel that is scheduled—
    • (A) to begin during the 15-month period; and
    • (B) to be for a period of more than six months.
• (c)
  • (1) The Secretary of the Navy shall submit to Congress each year, at the time that the President’s budget is submitted to Congress that year under section 1105(a) of title 31 , a report listing all repairs and maintenance performed on any covered naval vessel that has undergone work for the repair of the vessel in any shipyard outside the United States or Guam (in this section referred to as a “foreign shipyard”) during the fiscal year preceding the fiscal year in which the report is submitted.
  • (2) The report shall include the percentage of the annual ship repair budget of the Navy that was spent on repair of covered naval vessels in foreign shipyards during the fiscal year covered by the report.
  • (3) Except as provided in paragraph (4), the report also shall include the following with respect to each covered naval vessel:
    • (A) The justification under law and operational justification for the repair in a foreign shipyard.
    • (B) The name and class of vessel repaired.
    • (C) The category of repair and whether the repair qualified as voyage repair as defined in Commander Military Sealift Command Instruction 4700.15C ( September 13, 2007 ) or Joint Fleet Maintenance Manual (Commander Fleet Forces Command Instruction 4790.3 Revision A, Change 7), Volume III. Scheduled availabilities are to be considered as a composite and reported as a single entity without individual repair and maintenance items listed separately.
    • (D) The shipyard where the repair work was carried out.
    • (E) The number of days the vessel was in port for repair.
    • (F) The cost of the repair and the amount (if any) that the cost of the repair was less than or greater than the cost of the repair provided for in the contract.
    • (G) The schedule for repair, the amount of work accomplished (stated in terms of work days), whether the repair was accomplished on schedule, and, if not so accomplished, the reason for the schedule over-run.
    • (H) The homeport or location of the vessel prior to its voyage for repair.
    • (I) Whether the repair was performed under a contract awarded through the use of competitive procedures or procedures other than competitive procedures.
  • (4) In the case of a covered vessel described in subparagraph (C) of paragraph (5), the report shall not be required to include the information described in subparagraphs (A), (E), (F), (G), and (I) of paragraph (3).
  • (5) In this subsection, the term “covered naval vessel” means any of the following:
    • (A) A naval vessel.
    • (B) Any other vessel under the jurisdiction of the Secretary of the Navy.
    • (C) A vessel not described in subparagraph (A) or (B) that is operated pursuant to a contract entered into by the Secretary of the Navy and the Maritime Administration or the United States Transportation Command in support of Department of Defense operations.

§ 8681. Repair or maintenance of naval vessels: handling of hazardous waste

• (a) The Secretary of the Navy shall ensure that each contract entered into for work on a naval vessel (other than new construction) includes the following provisions:
  • (1) A provision in which the Navy identifies the types and amounts of hazardous wastes that are required to be removed by the contractor from the vessel, or that are expected to be generated, during the performance of work under the contract, with such identification by the Navy to be in a form sufficient to enable the contractor to comply with Federal and State laws and regulations on the removal, handling, storage, transportation, or disposal of hazardous waste.
  • (2) A provision specifying that the contractor shall be compensated under the contract for work performed by the contractor for duties of the contractor specified under paragraph (3).
  • (3) A provision specifying the responsibilities of the Navy and of the contractor, respectively, for the removal (including the handling, storage, transportation, and disposal) of hazardous wastes.
  • (4)
    • (A) A provision specifying the following:
      • (i) In any case in which the Navy is the sole generator of hazardous waste that is removed, handled, stored, transported, or disposed of by the contractor in the performance of the contract, all contracts, manifests, invoices, and other documents related to the removal, handling, storage, transportation, or disposal of such hazardous waste shall bear a generator identification number issued to the Navy pursuant to applicable law.
      • (ii) In any case in which the contractor is the sole generator of hazardous waste that is removed, handled, stored, transported, or disposed of by the contractor in the performance of the contract, all contracts, manifests, invoices, and other documents related to the removal, handling, storage, transportation, or disposal of such hazardous waste shall bear a generator identification number issued to the contractor pursuant to applicable law.
      • (iii) In any case in which both the Navy and the contractor are generators of hazardous waste that is removed, handled, stored, transported, or disposed of by the contractor in the performance of the contract, all contracts, manifests, invoices, and other documents related to the removal, handling, storage, transportation, or disposal of such hazardous waste shall bear both a generator identification number issued to the Navy and a generator identification number issued to the contractor pursuant to applicable law.
    • (B) A determination under this paragraph of whether the Navy is a generator, a contractor is a generator, or both the Navy and a contractor are generators, shall be made in the same manner provided under subtitle C of the Solid Waste Disposal Act ( 42 U.S.C. 6921 et seq.) and regulations promulgated under that subtitle.
• (b) The Secretary of the Navy shall renegotiate a contract described in subsection (a) if—
  • (1) the contractor, during the performance of work under the contract, discovers hazardous wastes different in type or amount from those identified in the contract; and
  • (2) those hazardous wastes originated on, or resulted from material furnished by the Government for, the naval vessel on which the work is being performed.
• (c) The Secretary of the Navy shall remove known hazardous wastes from a vessel before the vessel’s arrival at a contractor’s facility for performance of a contract, to the extent such removal is feasible.
• (d) Nothing in this section shall be construed as altering or otherwise affecting those provisions of the Solid Waste Disposal Act ( 42 U.S.C. 6901 et seq.) that relate to generators of hazardous waste. For purposes of this section, any term used in this section for which a definition is provided by the Solid Waste Disposal Act (or regulations promulgated pursuant to such Act) has the meaning provided by that Act or regulations.

§ 8682. Service craft stricken from Naval Vessel Register; obsolete boats: use of proceeds from exchange or sale

• (a) When the Secretary of the Navy sells an obsolete service craft or an obsolete boat, or exchanges such a craft or boat in a transaction for which a similar craft or boat is acquired, the Secretary may retain the proceeds of the sale or the exchange allowance from the exchange, as the case may be, and apply the proceeds of sale or the exchange allowance for any of the following purposes:
  • (1) For payment, in whole or in part, for a similar service craft or boat acquired as a replacement, as authorized by section 503 of title 40 .
  • (2) For reimbursement, to the extent practicable, of the appropriate accounts of the Navy for the full costs of preparation of such obsolete craft or boat for such sale or exchange.
  • (3) For deposit to the special account established under subsection (b), to be available in accordance with that subsection.
• (b) Amounts retained under subsection (a) that are not applied as provided in paragraph (1) or (2) of that subsection shall be deposited into a special account. Amounts in the account shall be available under subsection (c) without regard to fiscal year limitation. Amounts in the account that the Secretary of the Navy determines are not needed for the purpose stated in subsection (c) shall be transferred at least annually to the General Fund of the Treasury.
• (c) The Secretary may use amounts in the account under subsection (b) for payment, in whole or in part, for the full costs of preparation of obsolete service craft and obsolete boats for future sale or exchange.
• (d) In this section, the term “full costs of preparation” means the full costs (direct and indirect) incurred by the Navy in preparing an obsolete service craft or an obsolete boat for exchange or sale, including the cost of the following:
  • (1) Towing.
  • (2) Storage.
  • (3) Defueling.
  • (4) Removal and disposal of hazardous wastes.
  • (5) Environmental surveys to determine the presence of regulated materials containing polychlorinated biphenyl (PCB) and, if such materials are found, the removal and disposal of such materials.
  • (6) Other costs related to such preparation.
• (e) For purposes of this section, an obsolete service craft is a service craft that has been stricken from the Naval Vessel Register.
• (f) Section 6101 of title 41 does not apply to sales of service craft and boats described in subsection (a).
• (g) The Secretary of the Navy shall prescribe regulations for the purposes of this section.

§ 8683. Ship overhaul work: availability of appropriations for unusual cost overruns and for changes in scope of work

• (a)
  • (1) Appropriations available to the Department of Defense for a fiscal year may be used for payment of unusual cost overruns incident to ship overhaul, maintenance, and repair for a vessel inducted into an industrial-fund activity or contracted for during a prior fiscal year.
  • (2) The Secretary of Defense shall notify Congress promptly before an obligation is incurred for any payment under paragraph (1).
• (b) An appropriation available to the Department of Defense for a fiscal year may be used after the otherwise-applicable expiration of the availability for obligation of that appropriation—
  • (1) for payments to an industrial-fund activity for amounts required because of changes in the scope of work for ship overhaul, maintenance, and repair, in the case of work inducted into the industrial-fund activity during the fiscal year; and
  • (2) for payments under a contract for amounts required because of changes in the scope of work, in the case of a contract entered into during the fiscal year for ship overhaul, maintenance, and repair.

§ 8684. Overhaul of naval vessels: competition between public and private shipyards

The Secretary of the Navy should ensure, in any case in which the Secretary awards a project for repair, alteration, overhaul, or conversion of a naval vessel following competition between public and private shipyards, that each of the following criteria is met:

• (1) The bid of any public shipyard for the award includes—
  • (A) the full costs to the United States associated with future retirement benefits of civilian employees of that shipyard consistent with computation methodology established by Office of Management and Budget Circular A–76; and
  • (B) in a case in which equal access to the Navy supply system is not allowed to public and private shipyards, a pro rata share of the costs of the Navy supply system.
• (2) Costs applicable to oversight of the contract by the appropriate Navy supervisor of shipbuilding, conversion, and repair are added to the bid of any private shipyard for the purpose of comparability analysis.
• (3) The award is made using the results of the comparability analysis.

§ 8685. Preservation of Navy shipbuilding capability

• (a) The Secretary of the Navy may enter into an agreement, to be known as a “shipbuilding capability preservation agreement”, with a shipbuilder under which the cost reimbursement rules described in subsection (b) shall be applied to the shipbuilder under a Navy contract for the construction of a ship. Such an agreement may be entered into in any case in which the Secretary determines that the application of such cost reimbursement rules would facilitate the achievement of the policy objectives set forth in section 2501(b) of this title .
• (b) The cost reimbursement rules applicable under an agreement entered into under subsection (a) are as follows:
  • (1) The Secretary of the Navy shall, in determining the reimbursement due a shipbuilder for its indirect costs of performing a contract for the construction of a ship for the Navy, allow the shipbuilder to allocate indirect costs to its private sector work only to the extent of the shipbuilder’s allocable indirect private sector costs, subject to paragraph (3).
  • (2) For purposes of paragraph (1), the allocable indirect private sector costs of a shipbuilder are those costs of the shipbuilder that are equal to the sum of the following:
    • (A) The incremental indirect costs attributable to such work.
    • (B) The amount by which the revenue attributable to such private sector work exceeds the sum of—
      • (i) the direct costs attributable to such private sector work; and
      • (ii) the incremental indirect costs attributable to such private sector work.
  • (3) The total amount of allocable indirect private sector costs for a contract covered by the agreement may not exceed the amount of indirect costs that a shipbuilder would have allocated to its private sector work during the period covered by the agreement in accordance with the shipbuilder’s established accounting practices.
• (c) The cost reimbursement rules set forth in subsection (b) may be modified by the Secretary of the Navy for a particular agreement if the Secretary determines that modifications are appropriate to the particular situation to facilitate achievement of the policy set forth in section 2501(b) of this title .
• (d)
  • (1) An agreement entered into with a shipbuilder under subsection (a) shall apply to each of the following Navy contracts with the shipbuilder:
    • (A) A contract that is in effect on the date on which the agreement is entered into.
    • (B) A contract that is awarded during the term of the agreement.
  • (2) In a shipbuilding capability preservation agreement applicable to a shipbuilder, the Secretary may agree to apply the cost reimbursement rules set forth in subsection (b) to allocations of indirect costs to private sector work performed by the shipbuilder only with respect to costs that the shipbuilder incurred on or after November 18, 1997 , under a contract between the shipbuilder and a private sector customer of the shipbuilder that became effective on or after January 26, 1996 .

§ 8686. Support for transfers of decommissioned vessels and shipboard equipment

• (a) The Secretary of the Navy may provide an entity described in subsection (b) with assistance in support of a transfer of a vessel or shipboard equipment described in such subsection that is being executed under section 2572, 8676, 8677, or 8765 of this title, or under any other authority.
• (b) The authority under this section applies—
  • (1) in the case of a decommissioned vessel that—
    • (A) is owned and maintained by the Navy, is located at a Navy facility, and is not in active use; and
    • (B) is being transferred to an entity designated by the Secretary of the Navy or by law to receive transfer of the vessel; and
  • (2) in the case of any shipboard equipment that—
    • (A) is on a vessel described in paragraph (1)(A); and
    • (B) is being transferred to an entity designated by the Secretary of the Navy or by law to receive transfer of the equipment.
• (c) The Secretary may require a recipient of assistance under subsection (a) to reimburse the Navy for amounts expended by the Navy in providing the assistance.
• (d) Funds received in a fiscal year under subsection (c) shall be credited to the appropriation available for such fiscal year for operation and maintenance for the office of the Navy managing inactive ships, shall be merged with other sums in the appropriation that are available for such office, and shall be available for the same purposes and period as the sums with which merged.

§ 8687. Status of Government rights in the designs of vessels, boats, and craft, and components thereof

• (a) Government rights in the design of a vessel, boat, or craft, and its components, including the hull, decks, superstructure, and all shipboard equipment and systems, shall be determined solely as follows:
  • (1) In the case of a vessel, boat, craft, or component procured through a contract, in accordance with the provisions of section 2320 of this title .
  • (2) In the case of a vessel, boat, craft, or component procured through an instrument not governed by section 2320 of this title , by the terms of the instrument (other than a contract) under which the design for such vessel, boat, craft, or component, as applicable, was developed for the Government.
• (b) This section may be modified or superseded by a provision of statute only if such provision expressly refers to this section in modifying or superseding this section.

§ 8688. Warranty requirements for shipbuilding contracts

• (a) A contracting officer for a contract for new construction for which funds are expended from the Shipbuilding and Conversion, Navy account shall require, as a condition of the contract, that the work performed under the contract is covered by a warranty for a period of at least one year.
• (b) If the contracting officer for a contract covered by the requirement under subsection (a) determines that a limited liability of warranted work is in the best interest of the Government, the contracting officer may agree to limit the liability of the work performed under the contract to a level that the contracting officer determines is sufficient to protect the interests of the Government and in keeping with historical levels of warranted work on similar vessels.

§ 8689. Requirements for availability of funds relating to advanced naval nuclear fuel systems based on low-enriched uranium

• (a) Low-enriched uranium activities may only be carried out using funds authorized to be appropriated or otherwise made available for the Department of Energy for atomic energy defense activities for defense nuclear nonproliferation.
• (b)
  • (1) None of the funds described in paragraph (2) may be obligated or expended to carry out low-enriched uranium activities.
  • (2) The funds described in this paragraph are funds authorized to be appropriated or otherwise made available for any fiscal year for any of the following accounts:
    • (A) Shipbuilding and conversion, Navy, or any other account of the Department of Defense.
    • (B) Any account within the atomic energy defense activities of the Department of Energy other than defense nuclear nonproliferation, as specified in subsection (a).
  • (3) The prohibition in paragraph (1) may not be superseded except by a provision of law that specifically supersedes, repeals, or modifies this section. A provision of law, including a table incorporated into an Act, that appropriates funds described in paragraph (2) for low-enriched uranium activities may not be treated as specifically superseding this section unless such provision specifically cites to this section.
• (c) In this section, the term “low-enriched uranium activities” means the following:
  • (1) Planning or carrying out research and development of an advanced naval nuclear fuel system based on low-enriched uranium.
  • (2) Procuring ships that use low-enriched uranium in naval nuclear propulsion reactors.

§ 8690. Limitation on length of overseas forward deployment of naval vessels

• (a) The Secretary of the Navy shall ensure that no naval vessel specified in subsection (b) that is listed in the Naval Vessel Register is forward deployed overseas for a period in excess of ten years. At the end of a period of overseas forward deployment, the vessel shall be assigned a homeport in the United States.
• (b) A naval vessel specified in this subsection is any of the following:
  • (1) Aircraft carrier.
  • (2) Amphibious ship.
  • (3) Cruiser.
  • (4) Destroyer.
  • (5) Frigate.
  • (6) Littoral Combat Ship.
• (c) The Secretary of the Navy may waive the limitation under subsection (a) with respect to a naval vessel if the Secretary submits to the congressional defense committees notice in writing of—
  • (1) the waiver of such limitation with respect to the vessel;
  • (2) the date on which the period of overseas forward deployment of the vessel is expected to end; and
  • (3) the factors used by the Secretary to determine that a longer period of deployment would promote the national defense or be in the public interest.

§ 8691. Nuclear-powered aircraft carriers: dismantlement and disposal

• (a) Not less than 90 days before the award of a contract for the dismantlement and disposal of a nuclear-powered aircraft carrier, or the provision of funds to a naval shipyard for the dismantlement and disposal of a nuclear-powered aircraft carrier, the Secretary of the Navy shall submit to the congressional defense committees a report setting forth the following:
  • (1) A cost and schedule baseline for the dismantlement and disposal approved by the service acquisition executive of the Department of the Navy and the Chief of Naval Operations.
  • (2) A description of the regulatory framework applicable to the management of radioactive materials in connection with the dismantlement and disposal, including, in cases in which the Navy intends to have another government entity serve as the regulatory enforcement authority—
    • (A) a certification from that entity of its agreement to serve as the regulatory enforcement authority; and
    • (B) a description of the legal basis for the authority of that entity to serve as the regulatory enforcement authority.
• (b) In the materials submitted to Congress by the Secretary of Defense in support of the budget of the President for a fiscal year (as submitted to Congress under section 1105(a) of title 31 ), the Secretary of the Navy shall include information on each dismantlement and disposal of a nuclear-powered aircraft carrier occurring or planned to occur during the period of the future-years defense program submitted to Congress with that budget. Such information shall include, by ship concerned, the following:
  • (1) A summary of activities and significant developments in connection with such dismantlement and disposal.
  • (2) If applicable, a detailed description of cost and schedule performance against the baseline for such dismantlement and disposal established pursuant to subsection (a), including a description of and explanation for any variance from such baseline.
  • (3) A description of the amounts requested, or intended or estimated to be requested, for such dismantlement and disposal for each of the following:
    • (A) Each fiscal year covered by the future-years defense program.
    • (B) Any fiscal years before the fiscal years covered by the future-years defense program.
    • (C) Any fiscal years after the end of the period of the future-years defense program.
• (c) In this section, the term “future-years defense program” means the future-years defense program required by section 221 of this title .

§ 8692. Ford-class aircraft carriers: cost limitation baselines

• (a) The total amounts obligated or expended from funds authorized to be appropriated or otherwise made available for Shipbuilding and Conversion, Navy, or for any other procurement account, may not exceed the following amounts for the following aircraft carriers:
  • (1) $13,224,000,000 for the construction of the aircraft carrier designated CVN–78.
  • (2) $11,398,000,000 for the construction of the aircraft carrier designated CVN–79.
  • (3) $12,202,000,000 for the construction of the aircraft carrier designated CVN–80.
  • (4) $12,451,000,000 for the construction of the aircraft carrier designated CVN–81.
• (b) The Secretary of the Navy shall exclude from the determination of the amounts set forth in subsection (a) the costs of the following items:
  • (1) CVN–78 class battle spares.
  • (2) Interim spares.
  • (3) Increases attributable to economic inflation after December 1, 2018 , not otherwise included in the amounts listed in subsection (a).
• (c) The Secretary of the Navy may adjust an amount listed in subsection (a) not fewer than 15 days after submitting written notice and providing a briefing to the congressional defense committees, each of which shall include the amount and rationale of any change and the resulting amount after such change.