Sec. 307. INCENTIVE CONTRACTS FOR COAST GUARD YARD AND INDUSTRIAL ESTABLISHMENTS

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## SEC. 307 INCENTIVE CONTRACTS FOR COAST GUARD YARD AND INDUSTRIAL ESTABLISHMENTS Section 939 of title 14, United States Code, is amended— ####

(1)by inserting before “The Secretary may” the following: “(a) In General.—”; ####

(2)in subsection (a), as so designated by paragraph

(1)of this section, by striking the period at the end of the last sentence and inserting “or in accordance with subsection (b).”; and ####

(3)by adding at the end the following: > > ### “(b) Incentive Contracts > > > #### “(1) > > The parties to an order for industrial work to be performed by the Coast Guard Yard or a Coast Guard industrial establishment designated under subsection

(a)may enter into an order or a cost-plus-incentive-fee order in accordance with this subsection. > > > #### “(2) > > If such parties enter into such an order or a cost-plus-incentive-fee order, an agreed-upon amount of any adjustment described in subsection

(a)may be distributed as an incentive to the wage-grade industrial employees who complete the order. > > > #### “(3) > > Before entering into such an order or cost-plus-incentive-fee order such parties must agree that the wage-grade employees of the Coast Guard Yard or Coast Guard industrial establishment will take action to improve the delivery schedule or technical performance agreed to in the order for industrial work to which such parties initially agreed. > > > #### “(4) > > Notwithstanding any other provision of law, if the industrial workforce of the Coast Guard Yard or Coast Guard industrial establishment satisfies the performance target established in such an order or cost-plus-incentive-fee order— > > > ##### “(A) > > the adjustment to be made pursuant to subsection

(a)shall be reduced by an agreed-upon amount and distributed to such wage-grade industrial employees; and > > > ##### “(B) > > the remainder of the adjustment shall be credited to the appropriation for such order current at that time.” > .