Sec. 823. USE OF FIXED-PRICE TYPE CONTRACTS FOR CERTAIN SHIPBUILDING PROGRAMS

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## SEC. 823 USE OF FIXED-PRICE TYPE CONTRACTS FOR CERTAIN SHIPBUILDING PROGRAMS Section 818 of the John Warner National Defense Authorization Act for Fiscal Year 2007 (Public Law 109–364) is amended by adding at the end the following new subsection: > > ### “(g) Conditions With Respect to Certain Shipbuilding Contracts > > > #### “(1) Limitation > > With respect to a fixed-price type contract for the procurement of shipbuilding associated with a major defense acquisition program, the number of ships to be procured under such contract, including all options, may not be more than two if the scope of the work of such contract includes the detail design and the construction of items for such a major defense acquisition program. > > > #### “(2) Waiver > > The Secretary concerned may waive the limitation in paragraph

(1)if such Secretary submits to the congressional defense committees, not later than 30 days after issuance of such waiver, a written notification of such waiver that includes a certification that the basic and functional design of any ship to be procured under a contract described in paragraph

(1)are complete. > > > #### “(3) Definitions > > In this subsection: > > > ##### “(A) > > The term ‘basic and functional design’ has the meaning given in section 8669c of title 10, United States Code. > > > ##### “(B) > > The term ‘construction’ means steel cutting and module fabrication, assembly, and outfitting, keel laying, and module erection supporting the launch and eventual delivery of a completed ship. > > > ##### “(C) > > The term ‘detail design’ means design using computer-aided modeling to enable the generation of work instructions for construction of the ship, where such work instructions show detailed system information and support construction, including guidance for subcontractors and suppliers, installation drawings, schedules, material lists, and lists of prefabricated materials and parts.” > .

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Pub. L. 109-364

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Sec. 823

USE OF FIXED-PRICE TYPE CONTRACTS FOR CERTAIN SHIPBUILDING PROGRAMS

Pub. L.Pub. L. 109-364

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