14 U.S.C. § 939 — Accounting for industrial work

(a) The Secretary may regulate accounting for industrial work at the Coast Guard Yard or designated similar facilities, including civilian-labor overhead and plant and equipment maintenance. Each order must be supported by a transfer or advance covering estimated cost, credited to accounts established for this section. Those accounts may pay materials, supplies, equipment, civilian labor, overhead, and maintenance. When work ends, the amount transferred or advanced must be adjusted to actual cost under the Secretary’s rules or (b). (b) Incentive contracts. (1) Parties may use an order or cost-plus-incentive-fee order. (2) They may distribute an agreed part of the adjustment under (a) as an incentive to wage-grade industrial employees who finish the order. (3) Before doing so, they must agree that those employees will improve the delivery schedule or technical performance. (4) If the workforce meets the target, (A) the adjustment is reduced by the agreed amount and that amount goes to the employees, and (B) the rest goes to the appropriation currently supporting the order.