(a) Indefinite delivery-indefinite quantity contract
(1) Requirement
The Secretary of the Navy shall enter into an indefinite delivery-indefinite quantity contract for the maintenance, repair, and overhaul of covered vessels, and shall issue task orders under such contract for the performance of such activities, across availability periods, by private shipyards, with a separate task order for each category of covered vessel determined by the Secretary consistent with subsection (c).
(2) Responsibilities of contractors
Each task order issued under the contract required under paragraph (1) shall require the private shipyard performing work under the task order for a category of covered vessels to be responsible for any routine, scheduled, or corrective life-cycle maintenance or repair activity of such vessels assigned to such shipyard under such task order.
(3) Minimum term duration
The Secretary shall ensure that the term for any contractor that is a party to the indefinite delivery-indefinite quantity contract required under paragraph (1) is not less than five years after the date on which such contract is entered into.
(b) Pre-contract requirements
Prior to entering into the contract required under subsection (a)(1) or issuing any task order under such contract, but not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the congressional defense committees a report containing the following information:
A determination by the Secretary of the categories of covered vessels to be used for purposes of such contract, consistent with subsection (c), including the number, classes, and anticipated availability schedules of vessels the maintenance, repair, and overhaul of which is to be addressed by each task order issued under such contract.
For each such category, an identification of the availability of parts and supply chain capacity, forecasting, and planning necessary to support the maintenance, repair, and overhaul of covered vessels across availability periods.
An identification of standardized work-item sequencing, bundling, and planning requirements to enable predictable maintenance, repair, and overhaul of covered vessels across availability periods.
An assessment of the adequacy of facilities for such maintenance, repair, and overhaul, including with respect to workforce capacity, dry dock and pier availability, and long-term infrastructure necessary to sustain workload requirements under such contract.
A cost baseline for such maintenance, repair, and overhaul, and a methodology for evaluating potential savings or financial risks associated with such contract.
An identification of risks to such maintenance, repair, and overhaul associated with schedule disruptions, supply chain delays, or industrial base shortfalls, and a description of mitigation strategies and contingency planning for such risks.
(c) Considerations for category determination
In determining categories of covered vessels for purposes of the contract required under subsection (a)(1), the Secretary shall consider—
the facilities, capabilities, and industrial capacity required to carry out maintenance, repair, and overhaul activities for covered vessels;
the need to ensure adequate competition, and prevent the over-concentration of workload, among private shipyards; and
options for task orders issued under such contract to incorporate multiple covered vessels.
(d) Notification of contract termination
Not later than 30 days after any date on which the Secretary terminates the contract required under subsection (a)(1), or any task order under such contract, the Secretary shall submit to the congressional defense committees a notice of such termination, including a justification for such termination.
(e) Applicability of foreign shipyard restrictions
The limitations under section 8680 of title 10, United States Code, shall apply with respect to the maintenance, repair, and overhaul of covered vessels pursuant to any task order issued under the contract required under subsection (a)(1).
(f) Metrics and mechanisms for oversight
In carrying out this section, the Secretary shall establish metrics and oversight mechanisms for—
contractor performance;
schedule adherence;
cost performance relative to the established baseline cost;
effects on the industrial base and workforce sustainment; and
effects on fleet readiness and operational availability.
(g) Annual reports
Not later than 180 days after the date of the enactment of this Act, and annually thereafter for 5 years, the Secretary shall submit to the congressional defense committees a report that contains, at a minimum, the following:
A description of—
the status of the implementation of the contract required under subsection (a)(1);
the categories of covered vessels determined by the Secretary for purposes of such contract, and the rationale behind such determination;
projected cost savings, schedule improvements, and effects on the industrial base resulting from such contract; and
any risk identified with respect to such contract and as applicable, the measures adopted to mitigate any such risk.
Recommendations for legislative and regulatory changes to improve the authority for, or implementation of, indefinite delivery-indefinite quantity contracts entered into by the Secretary.
(h) Covered vessel defined
In this section, the term covered vessel means a surface combatant vessel, as such term is defined in section 8227(e) of title 10, United States Code.