SECTION 1. LIMITATION ON DISPOSAL OF FORMER NAVAL VESSELS AND MARITIME 
              ADMINISTRATION VESSELS FOR SCRAPPING ABROAD.

    (a) Limitation.--Except as provided in subsection (b), the 
Secretary concerned may not dispose of a vessel under the jurisdiction 
of that Secretary that is otherwise available for disposal if the 
disposal will result in the scrapping of the vessel outside the United 
States.
    (b) Exception.--The prohibition in subsection (a) does not apply in 
the case of a particular vessel if--
            (1) the Administrator of the Environmental Protection 
        Agency certifies to Congress and the Secretary concerned that 
        the environmental standards imposed by law and enforced in the 
        country in which the vessel is to be scrapped are similar to 
        the environmental standards imposed under United States law; 
        and
            (2) the Secretary of Labor certifies to Congress and the 
        Secretary concerned that the country in which the vessel is to 
        be scrapped recognizes internationally recognized worker rights 
        (as that term is defined in section 507(4) of the Trade Act of 
        1974 (19 U.S.C. 2467(4)).
    (c) Covered Secretaries.--For the purposes of this section, the 
term ``Secretary concerned'' means--
            (1) the Secretary of the Navy, in the case of vessels under 
        the jurisdiction of the Secretary of the Navy; and
            (2) the Secretary of Transportation, in the case of vessels 
        under the jurisdiction of the Maritime Administration.
    (d) Scrapping.--For the purposes of this section, the term 
``scrapping'', with respect to a vessel, includes dismantling the 
vessel and breaking up the vessel.

SEC. 2. NAVY SHIP SCRAPPING PILOT PROGRAM.

    (a) In General.--(1) During fiscal years 1999 and 2000, the 
Secretary of the Navy shall carry out a pilot program--
            (A) to gather data on the cost of scrapping United States 
        vessels at locations within the United States; and
            (B) to demonstrate cost effective technologies and 
        techniques to scrap such vessels in a manner that is protective 
        of worker safety and health and the environment.
    (2) The Secretary, in carrying out the pilot program, shall provide 
for the scrapping at locations within the United States of vessels in 
such number or tonnage as the Secretary determines to be sufficient for 
the purposes of the pilot program specified in subparagraphs (A) and 
(B) of paragraph (1).
    (b) Contract Award.--(1) In selecting the contractor for any 
contract under the pilot program for the scrapping of a vessel, the 
Secretary shall award the contract to the offeror that the Secretary 
determines will provide the best value to the United States, taking 
into account such factors as the Secretary considers appropriate.
    (2) In making a best value determination under this subsection, the 
Secretary shall give a greater weight to technical and performance-
related factors than to cost and price-related factors.
    (3) In evaluating an offer for such a contract, the Secretary shall 
give significant weight to the technical qualifications and past 
performance of the offeror, and the major subcontractors or team 
members of the offeror, in the following areas:
            (A) Compliance with applicable Federal, State, and local 
        laws and regulations for environmental and worker protection.
            (B) Ability to safely remove, handle, and abate hazardous 
        materials such as polychlorinated biphenyls, asbestos, and 
        lead.
            (C) Experience with ship construction, conversion, repair, 
        or scrapping.
            (D) Ability to manage workers safely in the following 
        processes and procedures:
                    (i) Metal cutting and heating.
                    (ii) Working in confined and enclosed spaces.
                    (iii) Fire prevention and protection.
                    (iv) Health and sanitation.
                    (v) Handling and control of polychlorinated 
                biphenyls, asbestos, lead, and other hazardous 
                materials.
                    (vi) Operation and use of magnetic cranes or heavy 
                lift cranes.
                    (vii) Use of personal protection equipment.
                    (viii) Emergency spill and containment capability.
            (E) Ability to provide an overall plan and schedule to 
        remove, tow, moor, demilitarize, dismantle, transport, and sell 
        salvage materials and scrap in a safe and cost effective manner 
        in compliance with applicable Federal, State, and local laws 
        and regulations.
            (F) Ability to provide an effective scrap site spill 
        containment prevention and emergency response plan.
            (G) Ability to ensure that subcontractors adhere to 
        applicable Federal, State and local laws and regulations for 
        environmental and worker safety.
    (4) Nothing in this subsection shall be construed to require the 
Secretary to disclose the specific weight of evaluation factors to 
potential offerors or to the public.
    (c) Contract Terms and Conditions.--Any contract awarded by the 
Secretary for the scrapping of a vessel for the purposes of the pilot 
program shall provide for the following:
            (1) The transfer of the vessel to the contractor.
            (2) The sharing (by any appropriate contracting method) of 
        the costs of scrapping the vessel between the Government and 
        the contractor.
            (3) A performance incentive to the contractor for a 
        successful record of environmental and worker protection under 
        the contract.
            (4) Access by the United States to records of the 
        contractor in accordance with the requirements of section 2313 
        of title 10, United States Code.
    (d) Reports.--(1) Not later than September 30, 1999, the Secretary 
of the Navy shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives an interim report on the pilot program. That report 
shall include the following:
            (A) The procedures used for the solicitation and award of 
        each contract awarded under the program.
            (B) A description of each contract awarded under the 
        program.
    (2) Not later than September 30, 2000, the Secretary of the Navy 
shall submit to those committees a final report on the pilot program. 
That report shall include the following:
            (A) The results of the program and the performance of each 
        contractor under the program.
            (B) The procurement strategy of the Secretary for future 
        ship scrapping activities.
Prohibits the Secretaries of the Navy and of Transportation from disposing of any naval vessel or Maritime Administration vessel, respectively, for purposes of scrapping, dismantling, or breaking up such vessels outside the United States, unless:  (1) the Administrator of the Environmental Protection Agency certifies to the Congress and the Secretary concerned that environmental standards imposed by law and enforced in the country in which the vessel is to be scrapped, dismantled, or broken up are similar to the environmental standards imposed under U.S. law; and (2) the Secretary of Labor certifies to the Congress and the Secretary concerned that such country recognizes internationally recognized worker rights. 
Directs the Secretary of the Navy to carry out a pilot program to:  (1) gather data on the cost of scrapping U.S. vessels at U.S. locations; and (2) demonstrate cost effective technologies and techniques to scrap such vessels in a manner that is protective of worker safety and health and the environment.  Requires the Secretary of the Navy, in selecting a contractor for any contract under the pilot program for the scrapping of a vessel, to award the contract to an offeror that will provide the best value to the United States.
To limit the disposal of former naval vessels and Maritime Administration vessels for purpose of scrapping abroad and to require the Secretary of the Navy to carry out a ship scrapping pilot program.