12 2 STA T . 2 9PUBLIC LA W 11 0– 1 8 1 —J A N .28 , 2008 (b)REPORT.—Ther e po r t re qui re d b ys ubse c tio n ( a )( 1 ) sha l l include , ata m inimum, an assessment o f each of the follo w in g: (1) The maturity of the ship ’ s design, as measured by stability of the ship contract specifications and the degree of completion of detail design and production design drawings. ( 2 ) The maturity of de v elopmental command and control systems, weapon and sensor systems, and hull, mechanical and electrical systems. ( 3 ) The readiness of the shipyard facilities and wor k force to begin construction. ( 4 ) The N avy’s estimated cost at completion and the ade - quacy of the budget to support the estimate. ( 5 ) The Navy’s estimated delivery date and description of any variance to the contract delivery date. ( 6 )Thee x tent to which adequate processes and metrics are in place to measure and manage program risks. (c) A PP LICAB ILIT Y .—This section applies to each ma j or ship- building program beginning after the date of the enactment of this Act. (d) D E F I N ITION S .— F or the purposes of subsection (a): (1) S TART OF CONSTR U CTION.—The term ‘ ‘start of construc- tion’’ means the beginning of fabrication of the hull and super- structure of the ship. (2) FIRST S H IP.—The term ‘‘first ship’’ applies to a ship if— (A) the ship is the first ship to be constructed under that shipbuilding program
or ( B ) the shipyard at which the ship is to be constructed has not previously started construction on a ship under that shipbuilding program. (3) M A J OR SHIPBUIL D IN G PROGRA M .—The term ‘‘major ship- building program’’ means a program for the construction of combatant and support vessels required for the naval vessel force, as reported within the annual naval vessel construction plan required by section 231 of title 1 0 , U nited States C ode. (4) P RODUCTION READINESS RE V IE W .—The term ‘‘production readiness review’’ means a formal examination of a program prior to the start of construction to determine if the design is ready for production, production engineering problems have been resolved, and the producer has accomplished adequate planning for the production phase. SEC.125 . LIT T ORA LCO MB ATS H I P( LCS ) PRO G RAM. Section 124 of the National Defense Authori z ation Act for Fiscal Y ear 2006 (Public L aw 10 9– 163; 119 Stat. 315 7 ) is amended by striking subsections (a), (b), (c), and (d) and inserting the following: ‘‘(a) LIMITATION OF COSTS.— ‘‘(1) I N GENERAL.—The total amount obligated or expended for the procurement costs of post-2007 LCS vessels shall not exceed $ 460,000,000 per vessel. ‘‘(2) PROCUREMENT COSTS.—For purposes of this section, procurement costs shall include all costs for plans, basic construction, change orders, electronics, ordnance, contractor support, and other costs associated with completion of produc- tion drawings, ship construction, test, and delivery, including work performed post-delivery that is required to meet original contract requirements.
�
