LITTORAL COMBAT SHIP PROGRAM.

SEC. 121. LITTORAL COMBAT SHIP PROGRAM.(a) Contract Authority.—(1) In general.—The Secretary of the Navy may procure up to ten Littoral Combat Ships and 15 Littoral Combat Ship ship control and weapon systems by entering into a contract using competitive procedures. Such procurement may also include—(A) materiel and equipment in economic order quantities when cost savings are achievable; and(B) cost reduction initiatives.(2) Liability.—A contract entered into under paragraph (1) shall provide that any obligation of the United States to make a payment under the contract is subject to the availability of appropriations for that purpose, and that total liability to the Government for termination of any contract entered into shall be limited to the total amount of funding obligated at time of termination.(b) Technical Data Package.—(1) Requirement.—As part of the solicitation for proposals for a procurement authorized by subsection (a), the Secretary shall require that an offeror submit a proposal that provides for conveying a complete technical data package as part of a proposal for a Littoral Combat Ship.(2) Rights of the united states.—The Secretary shall ensure that the Government’s rights in technical data for a Littoral Combat Ship are sufficient to permit the Government to—(A) conduct a competition for a second shipyard, as soon as practicable; and(B) transition the Littoral Combat Ship combat systems to Government-furnished equipment to achieve open architecture and foster competition to modernize future systems.(c) Limitation of Costs.—(1) Limitation.—Except as provided in subsection (d), and excluding amounts described in paragraph (2), beginning in fiscal year 2011, the total amount obligated or expended for 123 STAT. 2212 the procurement of a Littoral Combat Ship awarded to a contractor selected as part of a procurement authorized by subsection (a) may not exceed $480,000,000 per vessel.(2) Exclusion.—The amounts described in this paragraph are amounts associated with the following:(A) Elements designated by the Secretary of the Navy as a mission package.(B) Plans.(C) Technical data packages.(D) Class design services.(E) Post-delivery, outfitting, and program support costs.(d) Waiver and Adjustment of Limitation Amount.—(1) Waiver.—The Secretary of the Navy may waive the limitation in subsection (c)(1) with respect to a vessel if—(A) the Secretary provides supporting data and certifies in writing to the congressional defense committees that—(i) the total amount obligated or expended for procurement of the vessel–(I) is in the best interest of the United States; and(II) is affordable, within the context of the annual naval vessel construction plan required by section 231 of title 10, United States Code; and(ii) the total amount obligated or expended for procurement of at least one other vessel authorized by subsection (a) has been or is expected to be less than $480,000,000; and(B) a period of not less than 30 days has expired following the date on which such certification and data are submitted to the congressional defense committees.(2) Adjustment.—The Secretary of the Navy may adjust the amount set forth in subsection (c)(1) for Littoral Combat Ship vessels referred to in that subsection by the following:(A) The amounts of increases or decreases in costs attributable to economic inflation after September 30, 2009.(B) The amounts of increases or decreases in costs attributable to compliance with changes in Federal, State, or local laws enacted after September 30, 2009.(C) The amounts of increases or decreases in costs of the vessel that are attributable to insertion of new technology into that vessel, as compared to the technology built into the first or second vessels of the Littoral Combat Ship class of vessels, if the Secretary determines, and certifies to the congressional defense committees, that insertion of the new technology—(i) is expected to decrease the life-cycle cost of the vessel; or(ii) is required to meet an emerging threat that poses grave harm to national security.(D) The amounts of increases or decreases in costs required to correct deficiencies that may affect the safety of the vessel and personnel or otherwise preclude the vessel from safe operations and crew certifications.(e) Annual Reports.—At the same time that the budget is submitted under section 1105(a) of title 31, United States Code, for each fiscal year, the Secretary of the Navy shall submit to 123 STAT. 2213 the congressional defense committees a report on Littoral Combat Ship vessels. Each such report shall include the following:(1) The current (as of the date of the report) and projected total basic construction costs, Government-furnished equipment costs, and other program costs associated with each of the Littoral Combat Ships under construction.(2) Written notice of any adjustment in the amount set forth in subsection (c)(1) made during the preceding fiscal year that the Secretary adjusted under the authority provided in subsection (d)(2).(3) A summary of investment made by the Government for cost-reduction initiatives and the projected savings or cost avoidance based on those investments.(4) A summary of investment made by the construction yard to improve efficiency and optimization of construction along with the projected savings or cost avoidance based on those investments.(5) Information, current as of the date of the report, regarding—(A) the content of any element of the Littoral Combat Ship class of vessels that is designated as a mission package;(B) the estimated cost of any such element; and(C) the total number of such elements anticipated.(f) Definitions.—In this section:(1) The term “mission package” means the interchangeable systems that deploy with a Littoral Combat Ship vessel.(2) The term “technical data package” means a compilation of detailed engineering plans and specifications for construction of the vessels.(3) The term “total amount obligated or expended for procurement”, with respect to a Littoral Combat Ship, means the sum of the costs of basic construction and Government-furnished equipment for the ship.(g) Conforming Repeal.—Section 124 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3157), as amended by section 125 of the National Defense Authorization Act for Fiscal Year 2008 (Public Law 110–181; 122 Stat. 29) and section 122 of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (Public Law 110–417; 122 Stat. 4376), is repealed.