Page:United States Statutes at Large Volume 120.djvu/2409

 120 STAT. 2378

PUBLIC LAW 109–364—OCT. 17, 2006

(2) The option under subsection (b)(2) that the Secretary recommends for fiscal year 2008. (f) GAO REPORT.—Not later than March 1, 2007, the Comptroller General shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Service of the House of Representatives a report evaluating the report submitted by the Secretary of the Navy under subsection (a). The report shall include the option under subsection (b)(2) that the Secretary recommends for fiscal year 2008. SEC. 1016. ASSESSMENTS OF NAVAL VESSEL CONSTRUCTION EFFICIENCIES AND OF EFFECTIVENESS OF SPECIAL CONTRACTOR INCENTIVES.

(a) ASSESSMENT REQUIRED.—The Secretary of the Navy shall conduct an assessment of each of the aspects of naval vessel construction specified in subsection (b) in order to determine— (1) what inefficiencies exist in those aspects of naval vessel construction; (2) what innovative design and production technologies, processes, and performance incentives are warranted to alleviate the inefficiencies so identified; and (3) what action the Secretary intends to take to facilitate the adoption by the shipbuilding industry of the technologies, processes, and performance incentives identified under paragraph (2). (b) ASPECTS TO BE ASSESSED.—Subsection (a) applies with respect to the following aspects of naval vessel construction: (1) Program design, engineering, and production engineering. (2) Organization and operating systems. (3) Steelwork production. (4) Ship construction and outfitting. (5) Combat systems development, integration, and installation. (c) CONSIDERATION OF PRIOR ASSESSMENTS.—In making the assessments required by subsection (a), the Secretary shall take into consideration the results of— (1) the study of the cost effectiveness of the ship construction program of the Navy required by section 1014 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108–375; 118 Stat. 2041); (2) the assessment of the United States naval shipbuilding industry required by section 254 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3180); and (3) any prior assessment performed by or on behalf of the Department of Defense. (d) SPECIAL CONTRACTOR INCENTIVES.—In addition to the assessments under subsection (a), the Secretary shall conduct an assessment of the effectiveness of the use in naval vessel construction contracts of special contract incentives for investment by the contractor in facilities and process improvement projects. Such assessment shall include the following: (1) A description of the intent of the use of such incentives in naval vessel construction contracts. (2) A description of the process and criteria used by the Secretary for evaluation of proposed projects to receive such

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