RATES FOR PROGRESS PAYMENTS ON CERTAIN NAVAL SHIP REPAIR CONTRACTS

SEC. 1102. RATES FOR PROGRESS PAYMENTS ON CERTAIN NAVAL SHIP REPAIR CONTRACTS (a) In General.—(1) Chapter 633 of title 10, United States Code, is amended by adding at the end the following new section: “§ 7312. Repair or maintenance of naval vessels: progress payments under certain contracts “(a) The Secretary of the Navy shall provide that the rate for progress payments on naval ship contracts to which this section applies shall be— “(1) 90 percent, in the case of firms considered to be small businesses; and “(2) 85 percent, in the case of all other firms. “(b) This section applies to any contract awarded by the Secretary of the Navy for repair, maintenance, or overhaul of a naval vessel (other than a nuclear-powered vessel) for work required to be performed in one year or less.” (2) The table of sections at the beginning of such chapter is amended by adding at the end the following new item: 101 STAT. 1146 “7312. Repair or maintenance of naval vessels: progress payments under certain contracts.”. (b) Transition.—The amendment made by subsection (a) does not apply to a contract awarded pursuant to a solicitation issued before the date of the enactment of this Act.