WARRANTY REQUIREMENTS FOR SHIPBUILDING CONTRACTS.

SEC. 1022. WARRANTY REQUIREMENTS FOR SHIPBUILDING CONTRACTS. (a) Warranty Requirements.— (1) In general.—Chapter 633 of title 10, United States Code, is amended by adding at the end the following new section: “SEC. 7318. [10 U.S.C. 7318] Warranty requirements for shipbuilding contracts “(a) Requirement. A contracting officer for a contract for new construction for which funds are expended from the Shipbuilding and Conversion, Navy account shall require, as a condition of the contract, that the work performed under the contract is covered by a warranty for a period of at least one year. “(b) Waiver. If the contracting officer for a contract covered by the requirement under subsection (a) determines that a limited liability of warranted work is in the best interest of the Government, the contracting officer may agree to limit the liability of the work performed under the contract to a level that the contracting officer determines is sufficient to protect the interests of the Government and in keeping with historical levels of warranted work on similar vessels.” . (2) [10 U.S.C. 7291] Clerical amendment.—The table of sections at the beginning of such chapter is amended by adding at the end the following new item: “7318. Warranty requirements for shipbuilding contracts.” . (b) [10 U.S.C. 7318 note] Effective Date.—Section 7318 of title 10, United States Code, as added by subsection (a), shall take effect on the later of the following dates: (1) The date of the enactment of the National Defense Authorization for Fiscal Year 2018. (2) September 30, 2017.