Sec. 1022. NATIONAL SEA-BASED DETERRENCE FUND
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## SEC. 1022 NATIONAL SEA-BASED DETERRENCE FUND ###
(a)Enhancement of Authority of Secretary of Navy to Use National Sea-Based Deterrence Fund Section 2218a of title 10, United States Code, is amended— ####
(1)by redesignating subsections
(f)and
(g)as subsections
(i)and (j), respectively; and ####
(2)by inserting after subsection
(e)the following new subsections: > > ### “(f) Authority to Enter Into Economic Order Quantity Contracts > > > ####
(1)> > 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. > > > #### “(2) > > 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. > > > ### “(g) Authority to Begin Manufacturing and Fabrication Efforts Prior to Ship Authorization > > > ####
(1)> > 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. > > > #### “(2) > > 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. > > > ### “(h) Authority to Use Incremental Funding to Enter Into Contracts for Certain Items > > > ####
(1)> > 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. > > > #### “(2) > > 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.” > . ###
(b)Modification and Extension of Authority to Transfer Funds Section 1022(b)(1) of the National Defense Authorization Act for Fiscal Year 2015 (Public Law 113-291; 128 Stat. 3487) is amended— ####
(1)by striking “or 2016” and inserting “2016, or 2017”; and ####
(2)by striking “for the Navy for the Ohio Replacement Program” and inserting “for the Department of Defense”.
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- 128 Stat. 3487
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