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(ii) the incremental indirect costs attributable to

such private sector work.

(3) The total amount of allocable indirect private sector costs for a contract covered by the agreement may not exceed the amount of indirect costs that a shipbuilder would have allocated to its private sector work during the period covered by the agreement in accordance with the shipbuilder's established accounting practices.

(c) AUTHORITY TO MODIFY COST REIMBURSEMENT RULES.—The cost reimbursement rules set forth in subsection (b) may be modified by the Secretary of the Navy for a particular agreement if the Secretary determines that modifications are appropriate to the particular situation to facilitate achievement of the policy set forth in section 2501(b) of this title.

(d) APPLICABILITY.—(1) An agreement entered into with a shipbuilder under subsection (a) shall apply to each of the following Navy contracts with the shipbuilder:

(A) A contract that is in effect on the date on which the agreement is entered into.

(B) A contract that is awarded during the term of the agreement.

(2) In a shipbuilding capability preservation agreement applicable to a shipbuilder, the Secretary may agree to apply the cost reimbursement rules set forth in subsection (b) to allocations of indirect costs to private sector work performed by the shipbuilder only with respect to costs that the shipbuilder incurred on or after November 18, 1997, under a contract between the shipbuilder and a private sector customer of the shipbuilder that became effective on or after January 26, 1996.

(Added P.L. 105-85, § 1027(a)(1), Nov. 18, 1997, 111 Stat. 1878; amended P.L. 106-65, § 1066(a)(29), Oct. 5, 1999, 113 Stat. 772.)

Sec.

7361. 7362.

CHAPTER 637-SALVAGE FACILITIES

Authority to provide for necessary salvage facilities. Acquisition and transfer of vessels and equipment. 7363. Settlement of claims.

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§ 7361. Authority to provide for necessary salvage facilities (a) AUTHORITY.-The Secretary of the Navy may provide, by contract or otherwise, necessary salvage facilities for public and private vessels.

(b) COORDINATION WITH SECRETARY OF HOMELAND SECURITY. The Secretary shall submit to the Secretary of Homeland Security for comment each proposed contract for salvage facilities that affects the interests of the Department of Homeland Security.

(c) LIMITATION.-The Secretary of the Navy may enter into a term contract under subsection (a) only if the Secretary determines that available commercial salvage facilities are inadequate to meet the requirements of national defense.

(d) PUBLIC NOTICE.-The Secretary may not enter into a contract under subsection (a) until the Secretary has provided public notice of the intent to enter into such a contract.

(Aug. 10, 1956, ch. 1041, 70A Stat. 455; Aug. 6, 1981, P.L. 97-31, § 12(3)(D), 95 Stat. 154; amended in its entirety P.L. 104-106, § 1015, Feb. 10, 1996, 110 Stat. 424; P.L. 107–296, § 1704(b)(1), (6), Nov. 25, 2002, 116 Stat. 2314.)

§ 7362. Acquisition and transfer of vessels and equipment

(a) AUTHORITY.-The Secretary of the Navy may acquire or transfer for operation by private salvage companies such vessels and equipment as the Secretary considers necessary.

(b) AGREEMENT ON USE.-Before any salvage vessel or salvage gear is transferred by the Secretary to a private party, the private party must agree in writing with the Secretary that the vessel or gear will be used to support organized offshore salvage facilities for a period of as many years as the Secretary considers appropriate. (c) REFERENCE TO AUTHORITY TO ADVANCE FUNDS FOR IMMEDIATE SALVAGE OPERATIONS.-For authority for the Secretary of the Navy to advance to private salvage companies such funds as the Secretary considers necessary to provide for the immediate financing of salvage operations, see section 2307(g)(2) of this title. (Aug. 10, 1956, ch. 1041, 70A Stat. 455; amended in its entirety P.L. 104-106, § 1015, Feb. 10, 1996, 110 Stat. 424.)

§7363. Settlement of claims

The Secretary of the Navy may settle any claim by the United States for salvage services rendered by the Department of the Navy and may receive payment of any such claim.

(Aug. 10, 1956, ch. 1041, 70A Stat. 455; amended in its entirety P.L. 104-106, § 1015, Feb. 10, 1996, 110 Stat. 425.)

§ 7364. Disposition of receipts

Amounts received under this chapter shall be credited to appropriations for maintaining naval salvage facilities. However, any amount received under this chapter in any fiscal year in excess of naval salvage costs incurred by the Navy during that fiscal year shall be deposited into the general fund of the Treasury.

(Aug. 10, 1956, ch. 1041, 70A Stat. 456; amended in its entirety P.L. 104-106, § 1015, Feb. 10, 1996, 110 Stat. 425.)

CHAPTER 645-PROCUREMENT OF SUPPLIES AND

SERVICES

Sec.

[7521.

7522.

7523.

7524.

Repealed.]

Contracts for research.

Tolls and fares: payment or reimbursement.

Marine mammals: use for national defense purposes.

[§ 7521. Repealed. P.L. 103-355, § 2001 (j)(3)(C), Oct. 13, 1994, 108 Stat. 3303]

$7522. Contracts for research

(a) The Secretary of the Navy and, by direction of the Secretary, the Chief of Naval Research and the chiefs of bureaus may, without advertising, make contracts or amendments or modifications of contracts for services and materials necessary to conduct research and to make or secure reports, tests, models, or apparatus. A contractor supplying such services or materials need not be required to furnish a bond.

(b) This section does not authorize the use of the cost-plus-apercentage-of-cost system of contracting.

(Aug. 10, 1956, ch. 1041, 70A Stat. 464; Dec. 12, 1980, P.L. 96-513, §513(38), 94 Stat. 2934; Sept. 13, 1982, P.L. 97-258, §3(b)(9), 96 Stat. 1064; Oct. 19, 1984, P.L. 98-525, § 1405(56)(B), 98 Stat. 2626; Oct. 13, 1994, P.L. 103-355, § 2001(j)(2), 108 Stat. 3303.)

$7523. Tolls and fares: payment or reimbursement

Naval appropriations chargeable for transportation or travel are available for the payment or reimbursement of ferry, bridge, and similar tolls and of streetcar, bus, and similar fares.

(Aug. 10, 1956, ch. 1041, 70A Stat. 464.)

§ 7524. Marine mammals: use for national defense purposes (a) AUTHORITY.-Subject to subsection (c), the Secretary of Defense may authorize the taking of not more than 25 marine mammals each year for national defense purposes. Any such authorization may be made only with the concurrence of the Secretary of Commerce and after consultation with the Marine Mammal Commission established by section 201 of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1401).

(b) HUMANE TREATMENT REQUIRED.-A mammal taken under this section shall be captured, supervised, cared for, transported, and deployed in a humane manner consistent with conditions established by the Secretary of Commerce.

(c) PROTECTION FOR ENDANGERED SPECIES.-A mammal may not be taken under this section if the mammal is determined to be a member of an endangered or threatened species under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533).

(d) APPLICATION OF OTHER ACT.-This section applies without regard to the provisions of the Marine Mammal Protection Act of 1972 (16 U.S.C. 1361 et seq.).

(Added P.L. 99-661, § 1354(a), Nov. 14, 1986, 100 Stat. 3996.)

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