Sec. 124. PROCUREMENT AUTHORITIES FOR CERTAIN AMPHIBIOUS SHIPBUILDING PROGRAMS

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## SEC. 124 PROCUREMENT AUTHORITIES FOR CERTAIN AMPHIBIOUS SHIPBUILDING PROGRAMS ###

(a)Contract Authority ####

(1)Procurement authorized In fiscal years 2021 and 2022, the Secretary of the Navy may enter into one or more contracts for the procurement of three San Antonio-class amphibious ships and one America-class amphibious ship. ####

(2)Procurement in conjunction with existing contracts The ships authorized to be procured under paragraph

(1)may be procured as additions to existing contracts covering such programs. ###

(b)Certification Required A contract may not be entered into under subsection

(a)unless the Secretary of the Navy certifies to the congressional defense committees, in writing, not later than 30 days before entry into the contract, each of the following, which shall be prepared by the milestone decision authority for such programs: ####

(1)The use of such a contract is consistent with the projected force structure requirements of the Department of the Navy for amphibious ships. ####

(2)The use of such a contract will result in significant savings compared to the total anticipated costs of carrying out the program through annual contracts. In certifying cost savings under the preceding sentence, the Secretary shall include a written explanation of— #####

(A)the estimated end cost and appropriated funds by fiscal year, by hull, without the authority provided in subsection (a); #####

(B)the estimated end cost and appropriated funds by fiscal year, by hull, with the authority provided in subsection (a); #####

(C)the estimated cost savings or increase by fiscal year, by hull, with the authority provided in subsection (a); #####

(D)the discrete actions that will accomplish such cost savings or avoidance; and #####

(E)the contractual actions that will ensure the estimated cost savings are realized. ####

(3)There is a reasonable expectation that throughout the contemplated contract period the Secretary will request funding for the contract at the level required to avoid contract cancellation. ####

(4)There is a stable design for the property to be acquired and the technical risks associated with such property are not excessive. ####

(5)The estimates of both the cost of the contract and the anticipated cost avoidance through the use of a contract authorized under subsection

(a)are realistic. ####

(6)The use of such a contract will promote the national security of the United States. ####

(7)During the fiscal year in which such contract is to be awarded, sufficient funds will be available to perform the contract in such fiscal year, and the future-years defense program (as defined under section 221 of title 10, United States Code) for such fiscal year will include the funding required to execute the program without cancellation. ###

(c)Authority for Advance Procurement The Secretary of the Navy may enter into one or more contracts for advance procurement associated with a vessel or vessels for which authorization to enter into a contract is provided under subsection (a), and for systems and subsystems associated with such vessels in economic order quantities when cost savings are achievable. ###

(d)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 is subject to the availability of appropriations for that purpose for such fiscal year. ###

(e)Milestone Decision Authority Defined In this section. the term “milestone decision authority” has the meaning given the term in section 2366a(d) of title 10, United States Code.