Sec. 124. MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA CLASS SUBMARINE PROGRAM

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## SEC. 124 MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA CLASS SUBMARINE PROGRAM ###

(a)Authority for Multiyear Procurement Subject to section 2306b of title 10, United States Code, the Secretary of the Navy may enter into one or more multiyear contracts for the procurement of not more than 13 Virginia class submarines. ###

(b)Limitation The Secretary of the Navy may not modify a contract entered into under subsection

(a)if the modification would increase the target price of the submarine by more than 10 percent above the target price specified in the original contract awarded for the submarine under subsection (a). ###

(c)Authority for Advance Procurement The Secretary of the Navy may enter into one or more contracts, beginning in fiscal year 2018, for advance procurement associated with the Virginia class submarines for which authorization to enter into a multiyear procurement contract is provided under subsection

(a)and for equipment or subsystems associated with the Virginia class submarine program, including procurement of— ####

(1)long lead time material; or ####

(2)material or equipment in economic order quantities when cost savings are achievable. ###

(d)Contract Requirement ####

(1)In general The Secretary of the Navy shall ensure that a contract entered into under subsection

(a)includes an option to procure a Virginia class submarine in each of fiscal years 2022 and 2023. ####

(2)Option defined In this subsection, the term “option” has the meaning given that term in part 2.101 of the Federal Acquisition Regulation. ###

(e)Condition for Out-year Contract Payments A contract entered into under subsection

(a)shall provide that any obligation of the United States to make a payment under the contract for a fiscal year after fiscal year 2019 is subject to the availability of appropriations or funds for that purpose for such later fiscal year. ###

(f)Limitation on Termination Liability A contract for the construction of Virginia class submarines entered into under subsection

(a)shall include a clause that limits the liability of the United States to the contractor for any termination of the contract. The maximum liability of the United States under the clause shall be the amount appropriated for the submarines covered by the contract regardless of the amount obligated under the contract. ###

(g)Virginia Class Submarine Defined The term “Virginia class submarine” means a block V configured Virginia class submarine.