10 U.S.C. § 8675a — Vessels stricken from Naval Vessel Register: contracts for dismantling on net-cost basis
submitted 22 years ago by Pub. L. 108-375 to r/title-10-ARMED-FORCES · 229 words · no verdicts yet
When the Navy hires a contractor to dismantle a struck vessel, it may use a net-cost contract. Under such a contract, the contractor keeps the money from selling the ship's scrap and reusable parts. The contract price is reduced ahead of time by the estimated value of that scrap and those parts.
(a) Authority for Net-Cost Basis Contracts — When the Secretary of the Navy hires a contractor to dismantle a vessel struck from the Register, the Secretary may structure the contract on a "net-cost basis."
(b) Retention by Contractor of Proceeds — When using a net-cost contract, the Secretary must let the contractor keep the money made from selling scrap and reusable items taken off the dismantled vessel.
(c) Definitions — "Net-cost basis" means the payment for dismantling and for removing and disposing of hazardous waste is reduced ahead of time by the offeror's estimate of what the scrap and reusable items removed from the vessel will be worth. "Scrap" means personal property with no value except for its raw material. "Reusable item" means a demilitarized part, or a removable piece of the vessel or its equipment, that the Secretary has identified as no longer needed by the Navy but that could still be resold.
When the Secretary of the Navy awards a contract for the dismantling of a vessel stricken from the Naval Vessel Register, the Secretary may award the contract on a net-cost basis.
When the Secretary awards a contract on a net-cost basis under subsection (a), the Secretary shall provide in the contract that the contractor may retain the proceeds from the sale of scrap and reusable items removed from the vessel dismantled under the contract.
In this section:
The term “net-cost basis”, with respect to a contract for the dismantling of a vessel, means that the amount to be paid to the contractor under the contract for dismantling and for removal and disposal of hazardous waste material is discounted by the offeror’s estimate of the value of scrap and reusable items that the contractor will remove from the vessel during performance of the contract.
The term “scrap” means personal property that has no value except for its basic material content.
The term “reusable item” means a demilitarized component or a removable portion of a vessel or equipment that the Secretary of the Navy has identified as excess to the needs of the Navy but which has potential resale value on the open market.
Source credit: (Added Pub. L. 108–375, div. A, title X, § 1011(a), Oct. 28, 2004, 118 Stat. 2038, § 7305a; renumbered § 8675a, Pub. L. 115–232, div. A, title VIII, § 807(d)(2), Aug. 13, 2018, 132 Stat. 1836.)
- 2004Enacted · Pub. L. 108-375 · 118 Stat. 2038
- 2018Amended · Pub. L. 115-232 · 132 Stat. 1836
A history note hasn’t been published yet. The record shows enactment by Pub. L. 108-375 on 2004-10-28.
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