INDEPENDENT STUDY TO ASSESS COST EFFECTIVENESS OF THE NAVY SHIP CONSTRUCTION PROGRAM.

SEC. 1014. INDEPENDENT STUDY TO ASSESS COST EFFECTIVENESS OF THE NAVY SHIP CONSTRUCTION PROGRAM.(a) Study.—The Secretary of Defense shall provide for a study of the cost effectiveness of the ship construction program of the Navy. The study shall be conducted by a group of industrial experts independent of the Department of Defense. The study shall examine both—(1) a variety of approaches by which the Navy ship construction program could be made more efficient in the near term; and(2) a variety of approaches by which, with a nationally integrated effort over the next decade, the United States shipbuilding industry might enhance its health and viability.(b) Near-Term Improvements in Efficiency.—With respect to the examination under subsection (a)(1) of approaches by which the Navy ship construction program could be made more efficient in the near term, the Secretary shall provide for the persons conducting the study to—(1) determine the potential cost savings on an annual basis, with an estimate of return on investment, from implementation of each approach examined; and(2) establish priorities for potential implementation of the approaches examined.(c) United States Shipbuilding Infrastructure Modernization Plan.—With respect to the examination under subsection (a)(2) of approaches by which the United States shipbuilding industry might enhance its health and viability through a nationally integrated effort over the next decade, the Secretary shall provide for the persons conducting the study to—(1) propose a plan incorporating a variety of approaches that would modernize the United States shipbuilding infrastructure within the next decade, resulting in a healthier and more viable shipbuilding industrial base;(2) establish priorities for potential implementation of the approaches examined; and(3) estimate the resources required to implement each of the approaches examined.(d) Report.—Not later than October 1, 2005, the Secretary of Defense shall submit a report to the congressional defense committees providing the results of the study under subsection 118 STAT. 2042 (a). The report shall include the matters specified in subsections (b) and (c).