LITTORAL COMBAT SHIP (LCS) PROGRAM.

SEC. 125. LITTORAL COMBAT SHIP (LCS) PROGRAM. Section 124 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3157) is amended by striking subsections (a), (b), (c), and (d) and inserting the following:“(a) Limitation of Costs.—“(1) In general.—The total amount obligated or expended for the procurement costs of post-2007 LCS vessels shall not exceed $460,000,000 per vessel.“(2) Procurement costs.—For purposes of this section, procurement costs shall include all costs for plans, basic construction, change orders, electronics, ordnance, contractor support, and other costs associated with completion of production drawings, ship construction, test, and delivery, including work performed post-delivery that is required to meet original contract requirements.122 STAT. 30“(3) Post-2007 lcs vessels.—For purposes of this section, the term ‘post-2007 LCS vessel’ means a vessel in the Littoral Combat Ship (LCS) class of vessels, the procurement of which is funded from amounts appropriated pursuant to an authorization of appropriations or otherwise made available for fiscal year 2008 or any fiscal year thereafter.“(b) Contract Type.—The Secretary of the Navy shall employ a fixed-price type contract for construction of post-2007 LCS vessels.“(c) Limitation of Government Liability.—The Secretary of the Navy shall not enter into a contract, or modify a contract, for construction or final delivery of post-2007 LCS vessels if the limitation of the Government’s cost liability, when added to the sum of other budgeted procurement costs, would exceed $460,000,000 per vessel.“(d) Adjustment of Limitation Amount.—The Secretary of the Navy may adjust the amount set forth in subsections (a)(1) and (c) for vessels referred to in such subsections by the following:“(1) The amounts of increases or decreases in costs attributable to compliance with changes in Federal, State, or local laws enacted after September 30, 2007.“(2) The amounts of outfitting costs and costs required to complete post-delivery test and trials.”.