Page:United States Statutes at Large Volume 120.djvu/2410

 PUBLIC LAW 109–364—OCT. 17, 2006

120 STAT. 2379

incentives in naval vessel construction contracts and for the selection among such proposed projects for inclusion of incentives in such contracts. (3) For each facility or process improvement project for which funds were provided in a naval vessel construction contract during the five-year period ending on the date of the enactment of this Act (including the facility or process improvement project contract incentives incorporated in the Virginiaclass submarine construction contract and in the CVN–21 construction contract)— (A) a description of the facility or process improvement project proposed by the contractor; (B) the amount expended (or to be expended) by the United States for the project under the contract; and (C) the estimated or actual return on investment for the amounts referred to in subparagraph (B). (4) The plans of the Secretary of the Navy to use similar contract incentives in ongoing and future shipbuilding programs. (5) Any recommendation by the Secretary for the enactment of legislation that might increase the effectiveness of, or expand the use of, such contract incentives. (e) REPORT.—Not later than April 1, 2007, the Secretary of the Navy shall submit to the congressional defense committees a report on— (1) the Secretary’s assessments of naval vessel construction efficiencies under subsection (a), addressing each of the matters specified in that subsection; and (2) the Secretary’s assessment of the effectiveness of special incentives for contractor investment in facilities and process improvement projects under subsection (d). SEC. 1017. OBTAINING CARRIAGE BY VESSEL: CRITERION REGARDING OVERHAUL, REPAIR, AND MAINTENANCE OF VESSELS IN THE UNITED STATES.

(a) ACQUISITION POLICY.—In order to maintain the national defense industrial base, the Secretary of Defense shall issue an acquisition policy that establishes, as a criterion required to be considered in obtaining carriage by vessel of cargo for the Department of Defense, the extent to which an offeror of such carriage had overhaul, repair, and maintenance work for covered vessels of the offeror performed in shipyards located in the United States. (b) COVERED VESSELS.—A vessel is a covered vessel of an offeror under this section if the vessel is— (1) owned, operated, or controlled by the offeror; and (2) qualified to engage in the carriage of cargo in the coastwise or non-contiguous trade under section 27 of the Merchant Marine Act, 1920 (46 U.S.C. 883), section 12106 of title 46, United States Code, and section 2 of the Shipping Act, 1916 (46 U.S.C. App. 802). (c) APPLICATION OF POLICY.—The acquisition policy shall include rules providing for application of the policy to covered vessels as expeditiously as is practicable based on the nature of carriage obtained, and by no later than June 1, 2007. (d) REGULATIONS.— (1) IN GENERAL.—The Secretary shall prescribe regulations as necessary to carry out the acquisition policy and submit

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