Bills Sec. 1051 — Enhancement of authority of Secreta…

Section 2218a of title 10, United States Code, is amended— in subsection (c)(1), by striking national sea-based deterrence vessels and inserting a class of twelve national sea-based deterrence vessels, and cross-program coordinated procurement efforts with other nuclear powered vessels ; in subsection (d), by inserting before the period at the end the following: and cross program coordinated procurement efforts with other nuclear powered vessels ; by redesignating subsections

(f)and

(g)as subsections

(j)and (l), respectively; by inserting after subsection

(e)the following new subsections: The Secretary of the Navy may use funds deposited in the Fund to enter into contracts known as economic order quantity contracts with private shipyards and other commercial or government entities to achieve economic efficiencies based on production economies for major components or subsystems. The authority under this subsection extends to the procurement of parts, components, and systems (including weapon systems) common with and required for other nuclear powered vessels under joint economic order quantity contracts. A contract entered into under paragraph

(1)shall provide that any obligation of the United States to make a payment under the contract is subject to the availability of appropriations for that purpose, and that total liability to the Government for termination of any contract entered into shall be limited to the total amount of funding obligated at time of termination. The Secretary of the Navy may use funds deposited into the Fund to enter into contracts for advance construction of national sea-based deterrence vessels to support achieving cost savings through workload management, manufacturing efficiencies, or workforce stability, or to phase fabrication activities within shipyard and manage sub-tier manufacturer capacity. A contract entered into under paragraph

(1)shall provide that any obligation of the United States to make a payment under the contract is subject to the availability of appropriations for that purpose, and that total liability to the Government for termination of any contract entered into shall be limited to the total amount of funding obligated at time of termination. The Secretary of the Navy may use funds deposited into the Fund to enter into incrementally funded contracts for advance procurement of high value, long lead time items for nuclear powered vessels to better support construction schedules and achieve cost savings through schedule reductions and properly phased installment payments. A contract entered into under paragraph

(1)shall provide that any obligation of the United States to make a payment under the contract is subject to the availability of appropriations for that purpose, and that total liability to the Government for termination of any contract entered into shall be limited to the total amount of funding obligated at time of termination. The Secretary of the Navy may use funds deposited into the Fund to provide incentives for investments in critical infrastructure at nuclear capable shipyards and critical sub-tier vendors. Additionally, the Secretary of the Navy may use such funds for certain cancellation costs in the event of significant changes to the Long Range Shipbuilding Strategy for nuclear powered vessels. ; by inserting after subsection (j), as redesignated by paragraph (3), the following new subsection: The Secretary of the Navy shall submit to the congressional defense committees, by March 1, 2016, and annually through the year 2025, a report on the Fund. Each such report shall identify separately the amount allocated by ship for programs, projects, and activities for construction (including design of vessels), purchase, alteration, and conversion. At a minimum, each such report shall include— information about the activities carried out using funds deposited into the Fund during the fiscal year covered by the report, including the status of class design and construction efforts, including programmatic schedules, procurement schedules, and funding requirements. a plan detailing forecasted obligations and expenditures for construction (including design of vessels), purchase, alteration, and conversion of vessels by ship for the fiscal year following the fiscal year during which the report is submitted; and the identification of the stable need and design for items, together with a description of any savings associated with the authorities provided in subsections

(e)and (f), as documented in cost estimates. The Secretary of the Navy shall provide to the congressional defense committees notice in writing at least 30 days before executing any significant deviation to the annual plan required under paragraph (1)(B). ; and in subsection (m), as so redesignated, by adding at the end the following new paragraph: The term advance construction means shipyard manufacturing and fabrication activities (including sub-tier manufacturing of major components or subsystems). . Section 1022(b)(1) of the National Defense Authorization Act for Fiscal Year 2015 ( Public Law 113–291 ; 128 Stat. 3487) is amended by striking for the Navy for the Ohio Replacement Program and inserting to the Department of Defense .

Sec. 1051. Enhancement of authority of Secretary of Navy to use National Sea-Based Deterrence Fund