### §8696. Navy shipbuilding workforce development special incentive

(a) Requirement.—

(1) In general.—The Secretary of the Navy shall include in any solicitation for a covered contract a special incentive for workforce development that funds one or more workforce development activities described in subsection (c).

(2) Amount of special incentive.—The amount of a special incentive required under subsection (a)(1) shall be equal to not less than one quarter of one percent and not more than one percent of the estimated cost of the covered contract.

(3) Waiver.—

(A) In general.—The Secretary of the Navy may waive one or more of the requirements of this section if the Secretary determines—

(i) unreasonable cost or delay would be incurred by complying with such requirements;

(ii) existing workforce development initiatives are sufficient to meet workforce needs;

(iii) there are minimal workforce development issues to be addressed; or

(iv) it is not in the national security interests of the United States to comply with such requirements.

(B) Notice to congress.—Not less than 30 days prior to issuing a waiver under subparagraph (A), the Secretary of the Navy shall submit to the congressional defense committees written notice of the intent of the Secretary to issue such a waiver. Such notice shall specify the basis for such waiver and include a detailed explanation of the reasons for issuing the waiver.

(b) Matching Contribution Requirement.—

(1) In general.—Funds for a special incentive for workforce development required under subsection (a)(1) may be expended only—

(A) on or after the date on which the service acquisition executive of the Navy receives a written commitment from one or more entities described in paragraph (2) of separate and distinct cumulative monetary contributions to be made on or after the date of such commitment for workforce development; and

(B) in an amount that is equal to the aggregate amount of all monetary contributions from entities that made commitments under subparagraph (A) not to exceed the amount of funding made available for the special incentive under subsection (a)(2).

(2) Entities described.—The entities described in this paragraph are the following:

(A) The prime contractor that was awarded a covered contract.

(B) A qualified subcontractor.

(C) A State government or other State entity.

(D) A county government or other county entity.

(E) A local government or other local entity.

(F) An industry association, organization, or consortium that directly supports workforce development.

(3) Special rule.—In a case in which the aggregate amount of all monetary contributions from entities that made commitments under paragraph (1)(A) is less than the minimum amount specified for the special incentive under subsection (a)(2), funds for the special incentive may be expended in an amount equal to such lesser amount.

(c) Authorized Activities.—

(1) In general.—Funds for a special incentive for workforce development required under subsection (a)(1) may be obligated or expended only to provide for the activities described in paragraph (2) in support of the production and production support workforce of the prime contractor concerned or a qualified subcontractor concerned.

(2) Activities described.—The activities described in this paragraph are the following:

(A) The creation of short- and long-term workforce housing, transportation, and other support services to facilitate attraction, relocation, and retention of workers.

(B) The expansion of local talent pipeline programs for both new and existing workers.

(C) Investments in long-term outreach in middle school and high school programs, specifically career and technical education programs, to promote and develop manufacturing skills.

(D) The development or modification of facilities for the primary purpose of workforce development.

(E) Payment of direct costs attributable to workforce development.

(F) Attraction and retention bonus programs.

(G) On-the-job training to develop key manufacturing skills.

(d) Approval Requirement.—The service acquisition executive of the Navy shall—

(1) provide the final approval of the use of funds for a special incentive for workforce development required under subsection (a)(1); and

(2) not later than 30 days after the date on which such approval is provided, certify to the congressional defense committees compliance with the requirements of subsections (b) and (c), including—

(A) a detailed explanation of such compliance; and

(B) the associated benefits to—

(i) the Federal Government; and

(ii) the shipbuilding industrial base of the Navy.

(e) Definitions.—In this section:

(1) The term "covered contract" means a prime contract for the construction of a naval vessel funded using amounts appropriated or otherwise made available for Shipbuilding and Conversion, Navy.

(2) The term "qualified subcontractor" means a subcontractor that will deliver the vessel or vessels awarded under a covered contract to the Navy.

(Added Pub. L. 117–263, div. A, title I, §122(a), Dec. 23, 2022, 136 Stat. 2441.)

#### **Editorial Notes**

#### Codification

Another section 8696 was renumbered section 8697 of this title.

#### **Statutory Notes and Related Subsidiaries**

#### Effective Date

Pub. L. 117–263, div. A, title I, §122(c), Dec. 23, 2022, 136 Stat. 2443, provided that: "Section 8696 of title 10, United States Code, as added by subsection (a), shall apply with respect to—

"(1) a solicitation for a covered contract (as defined in subsection (e) of that section) made on or after June 1, 2023; and

"(2) a solicitation or award of a covered contract, if otherwise determined appropriate by the Secretary of the Navy."