COAST GUARD BONDING REQUIREMENT.

SEC. 306. COAST GUARD BONDING REQUIREMENT. (a) In General.—Chapter 17 of title 14, United States Code, is amended by adding at the end the following new section: “§ 667. Vessel construction bonding requirements “The Secretary or the Commandant may require bid, payment, performance, payment and performance, or completion bonds or other financial instruments from contractors for construction, alteration, repair, or maintenance of Coast Guard vessels if— “(1) the bond is required by law; or “(2) the Secretary or Commandant determines after investigation that the amount of the bond in excess of 20 percent of the value of the base contract quantity excluding options, would not prevent a responsible bidder or offeror from competing for award of the contract.”. (b) Conforming Amendment.—The analysis for chapter 17 of title 14, United States Code, is amended by inserting after the item relating to section 666 the following: “667. Vessel construction bonding requirements.”.