(a) Contract authority
(1) Procurement authorized
The Secretary of the Navy may enter into one or more contracts for the procurement of covered ships.
(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 programs for covered ships.
(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 the covered ship program concerned:
The use of such a contract is consistent with the Commandant of the Marine Corps’ projected force structure requirements for amphibious ships.
The use of such a contract will result in 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—
the estimated end cost and appropriated funds by fiscal year, by hull, without the authority provided in subsection (a);
the estimated end cost and appropriated funds by fiscal year, by hull, with the authority provided in subsection (a);
the estimated cost savings or increase by fiscal year, by hull, with the authority provided in subsection (a); and
the contractual actions that will ensure the estimated cost savings are realized.
The Secretary of the Navy has a reasonable expectation that throughout the contemplated contract period funding will be available for the contract at the level required to avoid contract cancellation.
There is a stable design for the property to be acquired and the technical risks associated with such property are not excessive.
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.
The use of such a contract will promote the national security of the United States.
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.
(c) Authority for advance procurement
The Secretary of the Navy may enter into one or more contracts for advance procurement or advance construction associated with a ship or ships for which authorization to enter into a contract is provided under subsection (a), and for systems, sub systems, spare parts, and major shore based spares associated with such ships in economic order quantities when cost savings are achievable.
(d) Authority to use incremental funding
The Secretary of the Navy may incrementally fund a contract entered into under subsection (a) or (c).
(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 is subject to the availability of appropriations for that purpose for such fiscal year.
(f) Termination
The authority of the Secretary of the Navy to enter into contracts under subsection (a) shall terminate on September 30, 2030.
(g) Definitions
In this section:
The term covered ship means a San Antonio-class or America-class ship.
The term milestone decision authority has the meaning given that term in section 4251(e) of title 10, United States Code.