formed in an area outside the area of the homeport of the vessel, consider foreseeable costs of moving the vessel and its crew from the homeport to the outside area and from the outside area back to the homeport at the completion of the contract.

(c)(1) Before issuing a solicitation for a contract for short-term work for the overhaul, repair, or maintenance of a naval vessel, the Secretary of the Navy shall determine if there is adequate competition available among firms able to perform the work at the homeport of the vessel. If the Secretary determines that there is adequate competition among such firms, the Secretary

(A) shall issue such a solicitation only to firms able to perform the work at the homeport of the vessel; and

(B) may not award such contract to a firm other than a firm that will perform the work at the homeport of the vessel. (2) Paragraph (1) applies notwithstanding subsection (a) or any other provision of law.

(3) Paragraph (1) does not apply in the case of voyage repairs. (4) In this subsection, the term "short-term work" means work that will be for a period of six months or less.

(Added P.L. 97-295, §1(48)A), Oct. 12, 1982, 96 Stat. 1298, and amended P.L. 99-661, $1201(a), Nov. 14, 1986, 100 Stat. 3967; P.L. 100-180, 81101, Dec. 4, 1987, 101 Stat. 1145; P.L. 101-510, 1422, Nov. 5, 1990, 104 Stat. 1682; P.L. 102-484, § 1016, Oct. 23, 1992, 106 Stat. 2485.)

[§ 7300. Repealed. P.L. 97-86, § 911(b)(1), Dec. 1, 1981, 95 Stat. 1122]

[§ 7301. Repealed. P.L. 103–160, §824(a)(7), Nov. 30, 1993, 107 Stat. 1707]

[§ 7302. Repealed. P.L. 103–355, §3024(a), Oct. 13, 1994, 108 Stat. 3334]

§ 7303. Model Basin; investigation of hull designs

(a) An office or agency in the Department of the Navy designated by the Secretary of the Navy shall conduct at the David W. Taylor Model Basin, Carderock, Maryland, investigations to determine the most suitable shapes and forms for United States vessels and aircraft and investigations of other problems of their design.

(b) The Secretary of the Navy may authorize experiments to be made at the Model Basin for private persons. The costs of experiments made for private persons shall be paid by those persons under regulations prescribed by the Secretary. The results of private experiments are confidential and may not be divulged without the consent of the persons for whom they are made. However, the data obtained from such experiments may be used by the Secretary for governmental purposes, subject to the patent laws of the United States.

(Aug. 10, 1956, ch. 1041, 70A Stat. 451; Nov. 2, 1966, P.L. 89-718, §41, 80 Stat. 1120.) §7304. Examination of vessels; striking of vessels from Naval Vessel Register

(a) BOARDS OF OFFICERS TO EXAMINE NAVAL VESSELS.-The Secretary of the Navy shall designate boards of naval officers to examine naval vessels, including unfinished vessels, for the purpose of making a recommendation to the Secretary as to which vessels,

if any, should be stricken from the Naval Vessel Register. Each vessel shall be examined at least once every three years if practicable.

(b) ACTIONS BY BOARD.-A board designated under subsection (a) shall submit to the Secretary in writing its recommendations as to which vessels, if any, among those it examined should be stricken from the Naval Vessel Register.

(c) ACTION BY SECRETARY.-If the Secretary concurs with a recommendation by a board that a vessel should be stricken from the Naval Vessel Register, the Secretary shall strike the name of that vessel from the Naval Vessel Register.

(Aug. 10, 1956, ch. 1041, 70A Stat. 451; revised in its entirety P.L. 103–160, § 824(b), Nov. 30, 1993, 107 Stat. 1708.)

§ 7305. Vessels stricken from Naval Vessel Register: sale

(a) APPRAISAL OF VESSELS STRICKEN FROM NAVAL VESSEL REGISTER.-The Secretary of the Navy shall appraise each vessel stricken from the Naval Vessel Register under section 7304 of this title.

(b) AUTHORITY TO SELL VESSEL.-If the Secretary considers that the sale of the vessel is in the national interest, the Secretary may sell the vessel. Any such sale shall be in accordance with regulations prescribed by the Secretary for the purposes of this section.

(c) PROCEDURES FOR SALE. (1) A vessel stricken from the Naval Vessel Register and not subject to disposal under any other law may be sold under this section. In such a case, the Secretary may sell the vessel to the highest acceptable bidder, regardless of the appraised value of the vessel, after the vessel is publicly advertised for sale for a period of not less than 30 days.

(2) If the Secretary determines that the bid prices for a vessel received after advertising under paragraph (1) are not acceptable and that readvertising will serve no useful purpose, the Secretary may sell the vessel by negotiation to the highest acceptable bidder if

(A) each responsible bidder has been notified of intent to negotiate and has been given a reasonable opportunity to negotiate; and

(B) the negotiated price is

(i) higher than the highest rejected price of any responsible bidder; or

(ii) reasonable and in the national interest.

(d) APPLICABILITY.-This section does not apply to a vessel the disposal of which is authorized by the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), if it is to be disposed of under that Act.

(Aug. 10, 1966, ch. 1041, 70A Stat. 451; Dec. 12, 1980, P.L. 96-513, 513(27), 94 Stat. 2933; revised in its entirety P.L. 103–160, § 824(b), Nov. 30, 1993, 107 Stat. 1708.)

§ 7306. Vessels stricken from Naval Vessel Register; captured vessels: transfer by gift or otherwise

(a) AUTHORITY TO MAKE TRANSFER.-Subject to subsections (c) and (d) of section 602 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 474), the Secretary of the Navy

may transfer, by gift or otherwise, any vessel stricken from the Naval Vessel Register, or any captured vessel, to

(1) any State, Commonwealth, or possession of the United States or any municipal corporation or political subdivision thereof;

(2) the District of Columbia; or

(3) any not-for-profit or nonprofit entity.

(b) VESSEL TO BE MAINTAINED IN CONDITION SATISFACTORY TO SECRETARY.-An agreement for the transfer of a vessel under subsection (a) shall include a requirement that the transferee will maintain the vessel in a condition satisfactory to the Secretary.

(c) TRANSFERS TO BE AT NO COST TO UNITED STATES.-Any transfer of a vessel under this section shall be made at no cost to the United States.

(d) NOTICE TO CONGRESS. (1) No transfer under this section takes effect unless

(A) notice of the proposal to make the transfer is sent to Congress; and

(B) 60 days of continuous session of Congress have expired following the date on which such notice is sent to Congress.

(2) For purposes of paragraph (1)(B), the continuity of a session of Congress is broken only by an adjournment of the Congress sine die, and the days on which either House is not in session because of an adjournment of more than 3 days to a day certain are excluded in the computation of such 60-day period.

(Aug. 10, 1956, ch. 1041, 70A Stat. 452; Nov. 8, 1965, P.L. 89–348, § 1(10), 79 Stat. 1311; Nov. 2, 1966, P.L. 89-718, &42, 80 Stat. 1120; Nov. 29, 1989, P.L. 101-189, § 1616, 103 Stat. 1602; revised in its entirety P.L. 103–160, § 824(b), Nov. 30, 1993, 107 Stat. 1709.)

§7306a. Vessels stricken from Naval Vessel Register: use for experimental purposes

(a) AUTHORITY.—The Secretary of the Navy may use for experimental purposes any vessel stricken from the Naval Vessel Register.

(b) STRIPPING VESSEL.-(1) Before using a vessel for an experimental purpose pursuant to subsection (a), the Secretary shall carry out such stripping of the vessel as is practicable.

(2) Amounts received as proceeds from the stripping of a vessel pursuant to this subsection shall be credited to appropriations available for the procurement of scrapping services needed for such stripping. Amounts received which are in excess of amounts needed for procuring such services shall be deposited into the general fund of the Treasury.

(Added P.L. 103–160, § 824(b), Nov. 30, 1993, 107 Stat. 1709.)

§7307. Disposals to foreign nations

(a) LARGER OR NEWER VESSELS.-A naval vessel that is in excess of 3,000 tons or that is less than 20 years of age may not be disposed of to another nation (whether by sale, lease, grant, loan, barter, transfer, or otherwise) unless the disposition of that vessel is approved by law enacted after August 5, 1974. A lease or loan of such a vessel under such a law may be made only in accordance with the provisions of chapter 6 of the Arms Export Control Act (22

U.S.C. 2796 et seq.) or chapter 2 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 2311 et seq.).

(b) OTHER VESSELS.-(1) A naval vessel not subject to subsection (a) may be disposed of to another nation (whether by sale, lease, grant, loan, barter, transfer, or otherwise) in accordance with applicable provisions of law, but only after

(A) the Secretary of the Navy notifies the Committees on Armed Services of the Senate and House of Representatives in writing of the proposed disposition; and

(B) 30 days of continuous session of Congress have expired following the date on which such notice is sent to those committees.

(2) For purposes of paragraph (1)(B), the continuity of a session of Congress is broken only by an adjournment of the Congress sine die, and the days on which either House is not in session because of an adjournment of more than 3 days to a day certain are excluded in the computation of such 30-day period.

(Aug. 10, 1956, ch. 1041, 70A Stat. 452; Aug. 5, 1974, P.L. 93-365, §702, 88 Stat. 405; Oct. 5, 1976, P.L. 94-457, §2, 90 Stat. 1938; Dec. 12, 1980, P.L. 96-513, 8513(28), 94 Stat. 2933; Aug. 8, 1985, P.L. 99-83, § 122, 99 Stat. 204; Nov. 5, 1990, P.L. 101-510, 1484(b)(4), 104 Stat. 1716; revised in its entirety P.L. 103–160, § 824(b), Nov. 30, 1993, 107 Stat. 1709.)

§ 7308. Chief of Naval Operations: certification required for disposal of combatant vessels

Notwithstanding any other provision of law, no combatant vessel of the Navy may be sold, transferred, or otherwise disposed of unless the Chief of Naval Operations certifies that it is not essential to the defense of the United States.

(Aug. 10, 1956, ch. 1041, 70A Stat. 453; Dec. 12, 1980, P.L. 96-513, §513(29), 94 Stat. 2933; Sept. 29, 1988, P.L. 100-456, § 1234(a), 102 Stat. 2059; Nov. 5, 1990, P.L. 101-510, 1427, 104 Stat. 1685; revised in its entirety P.L. 103–160, § 824(b), Nov. 30, 1993, 107 Stat. 1710.)

§ 7309. Construction of vessels in foreign shipyards: prohibition

(a) PROHIBITION.-Except as provided in subsection (b), no vessel to be constructed for any of the armed forces, and no major component of the hull or superstructure of any such vessel, may be constructed in a foreign shipyard.

(b) PRESIDENTIAL WAIVER FOR NATIONAL SECURITY INTEREST.(1) The President may authorize exceptions to the prohibition in subsection (a) when the President determines that it is in the national security interest of the United States to do so.

(2) The President shall transmit notice to Congress of any such determination, and no contract may be made pursuant to the exception authorized until the end of the 30-day period beginning on the date on which the notice of the determination is received by Congress.

(c) EXCEPTION FOR INFLATABLE BOATS.-An inflatable boat or a rigid inflatable boat, as defined by the Secretary of the Navy, is not a vessel for the purpose of the restriction in subsection (a). (Added P.L. 97-252, §1127(a), Sept. 8, 1982, 96 Stat. 758, and amended P.L. 98-473, § 101(h) [§ 8095), Oct. 12, 1984, 98 Stat. 1941; P.L. 99-145, § 1303(a)(24)(A), Nov. 8, 1985, 99 Stat. 740; P.L. 100-180, 1103, Dec. 4, 1987, 101 Stat. 1146; P.L. 100-456, § 1224, Sept. 29, 1988, 102 Stat. 2054; P.L. 101-189, §1622(c)(8), Nov. 29, 1989, 103 Stat. 1604, P.L. 102-190, $1017, Dec. 5, 1991, 105 Stat. 1459; P.L. 102-484, § 1012, Oct. 23, 1992, 106 Stat. 2483; revised in its entirety P.L. 103–160, § 824(b), Nov. 30, 1993, 107 Stat. 1710.)

§ 7310. Overhaul, repair, etc. of vessels in foreign shipyards: restrictions 3

(a) VESSELS WITH HOMEPORT IN UNITED STATES.-A naval vessel (or any other vessel under the jurisdiction of the Secretary of the Navy) the homeport of which is in the United States may not be overhauled, repaired, or maintained in a shipyard outside the United States, other than in the case of voyage repairs.

(b) VESSEL CHANGING HOMEPORTS.—(1) In the case of a naval vessel the homeport of which is not in the United States (or a territory of the United States), the Secretary of the Navy may not during the 15-month period preceding the planned reassignment of the vessel to a homeport in the United States (or a territory of the United States) begin any work for the overhaul, repair, or maintenance of the vessel that is scheduled to be for a period of more than six months.

(2) In the case of a naval vessel the homeport of which is in the United States (or a territory of the United States), the Secretary of the Navy shall during the 15-month period preceding the planned reassignment of the vessel to a homeport not in the United States (or a territory of the United States) perform in the United States (or a territory of the United States) any work for the overhaul, repair, or maintenance of the vessel that is scheduled

(A) to begin during the 15-month period; and

(B) to be for a period of more than six months.

(Added P.L. 97–295, § 1(49)(A), Oct. 12, 1982, 96 Stat. 1298; revised in its entirety and amended P.L. 103–160, §§ 367, 824(b), Nov. 30, 1993, 107 Stat. 1632, 1710.)

Sections 1455 and 1461 of the Department of Defense Authorization Act, 1986 (P.L. 99–145, 99 Stat. 761, 765), provide: SEC. 1455. ENCOURAGEMENT OF CONSTRUCTION IN UNITED STATES SHIPYARDS OF COMBATANT VESSELS FOR UNITED STATES ALLIES

(a) IN GENERAL.-The Secretary of the Navy shall take such steps as necessary

(1) to encourage United States shipyards to construct combatant vessels for nations friendly to the United States, subject to the requirement to safeguard sensitive warship technology; and

(2) to ensure that no effort is made by any element of the Department of the Navy to inhibit, delay, or halt the provision of any United States naval system to a nation allied with the United States if that system is approved for export to a foreign nation, unless approval of such system for export is withheld solely for the purpose of safeguarding sensitive warship technology;

(3) if opportunities arise to construct combatant vessels (including diesel submarines) outside the United States in a shipyard of a friendly foreign nation, with some or all of the costs provided by United States funds

(A) to encourage United States firms to participate in such construction to the maximum extent possible, subject to the requirement to safeguard sensitive warship technology; and

(B) to ensure, whenever practicable, that at least 51 percent of the dollar value of such construction is provided by United States firms.

(b) DEFINITION.-For the purposes of this section, the term "sensitive warship technology" means technology relating to the design or construction of a combatant naval vessel that is determined by the Secretary of Defense to be vital to United States security.

SEC. 1461. [5 U.S.C. 7301 note] LIMITATION ON GRATUITIES AT NAVAL SHIPBUILDING CEREMONIES

(a) GENERAL RULE.-A Federal officer, employee, or Member of Congress may not accept, directly or indirectly, any tangible thing of value as a gift or memento in connection with a ceremony to mark the completion of a naval shipbuilding milestone.

(b) EXCLUSION.-Subsection (a) does not apply to a gift or memento that has a value of less than $100.

(c) DEFINITIONS.-For purposes of this section, the terms "officer", "employee", and "Member of Congress" have the meanings given those terms in sections 2104, 2105, and 2106, respectively, of title 5, United States Code.