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 Sec-
retary 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 envi-
ronmental 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 inter-
nationally 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 Ad-
ministration.
(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 contrac-
tor for any contract under the pilot program for the scrap-
ping 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, conver-
sion, repair, or scrapping.
(D) Ability to manage workers safely in the fol-
lowing 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 ca-
pability.
(E) Ability to provide an overall plan and
schedule to remove, tow, moor, demilitarize, disman-
tle, 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 ad-
here 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 con-
tract awarded by the Secretary for the scrapping of a ves-
sel 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 contract-
ing method) of the costs of scrapping the vessel be-
tween 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 Com-
mittee on Armed Services of the Senate and the Commit-
tee 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 follow-
ing:
(A) The results of the program and the per-
formance of each contractor under the program.
(B) The procurement strategy of the Secretary
for future ship scrapping activities.
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