12 2 STA T . 2 7PUBLIC LA W 11 0– 1 8 1 —J A N .28 , 2008 year,fo r th e p ro cu re m e n tof Vi r g inia - c l a s ssu b marines an dG o v ern- ment-furnished e q uipment associated w ith the Virginia-class sub- marine program .( b )LIM I TA TI ON . —T he S ecretary may not enter into a contract authori z ed by subsection (a) until— ( 1 ) the Secretary submits to the congressional defense committees a certification that the Secretary has made, with respect to that contract, each of the findings required by sub- section (a) of section 2306 b of title 10, U nited States C ode
and (2) a period of 30 days has elapsed after the date of the transmission of such certification. SEC.12 2. R E PO R T O N S HI P BU I LD IN G IN V EST M ENT STR A TEG Y . (a) ST UDYREQ UI R ED.—The Secretary of the N avy shall provide for a study to determine the effectiveness of current financing mechanisms for providing incentives for contractors to ma k e ship- building capital e x penditures, and to assess potential capital expenditure incentives that would lead to ship construction or life- cycle cost savings to the F ederal Government. The study shall examine— (1) potential improvements in design tools and techniques, material management, technology insertion, systems integra- tion and testing, and other key processes and functions that would lead to reduced construction costs; (2) construction process improvements that would reduce procurement and life-cycle costs of the vessels under construc- tion at the contractor ’ s facilities; and (3) incentives for investment in shipyard infrastructure that support construction process improvements. (b) RE P ORT.—Not later than O ctober 1, 200 8 , the Secretary of the Navy shall submit to the congressional defense committees a report providing the results of the study under subsection (a). The report shall include each of the following
(1) A n assessment of the shipbuilding industrial base, as measured by a 10-year history for ma j or shipbuilders with respect to— (A) estimated value of shipbuilding facilities; ( B ) critical shipbuilding capabilities; (C) capital expenditures; ( D ) major investments in process improvements; and ( E ) costs for related Navy shipbuilding projects. (2) A description of mechanisms available to the Govern- ment and industry to finance facilities and process improve- ments, including— (A) contract incentive and award fees; (B) facilities capital cost of money; (C) facilities depreciation; (D) progress payment provisions; (E) other contract terms and conditions; (F) State and Federal tax provisions and tax incentives; (G) the National Shipbuilding Research P rogram; and ( H ) any other mechanisms available. (3) A summary of potential shipbuilding investments that offer greatest reduction to shipbuilding costs, including, for each such investment— (A) a project description; Deadlin e .C e rt i f i c ati o n.
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