‘‘(b) DETERMINATION.—The authority under this sec-
tion may be exercised only where the Secretary determines 
that the transfer of funds is required because of the dis-
covery, during the overhaul or conversion concerned, of un-
anticipated and emergent maintenance or repair. 
‘‘(c) NOTIFICATION.—A transfer may be made under 
this section if— 
‘‘(1) the Secretary determines that the overhaul 
or conversion concerned can be completed, so as to re-
turn the submarine or aircraft carrier to a full oper-
ational status, with that transfer; and 
‘‘(2) the Secretary submits to the congressional 
defense committees a written notification of the deter-
mination required by subsection (b) and the deter-
mination required by paragraph (1), together with 
explanations of the basis for each such determination. 
‘‘(d) LIMITATION OF $20,000,000.—An overhaul or 
conversion may receive one or more transfers under this sec-
tion, but may not receive more than $20,000,000 in such 
transfers, regardless of fiscal year.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at 
the beginning of such chapter is amended by adding at the 
end the following new item: 
‘‘7317. Transfer of funds for submarine engineered refueling overhauls and conver-
sions and for aircraft carrier refueling complex overhauls.’’. 
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SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR VIR-
GINIA-CLASS SUBMARINE PROGRAM. 
(a) AUTHORITY.—The Secretary of the Navy may, in 
accordance with section 2306b of title 10, United States 
Code, enter into multiyear contracts, beginning with the fis-
cal year 2008 program year, for the procurement of Vir-
ginia-class submarines and Government-furnished equip-
ment associated with the Virginia-class submarine pro-
gram. 
(b) LIMITATION.—The Secretary may not enter into 
a contract authorized by subsection (a) until— 
(1) the Secretary submits to the congressional de-
fense committees a certification that the Secretary has 
made, with respect to that contract, each of the find-
ings required by subsection (a) of section 2306(b) of 
title 10, United States Code; and 
(2) a period of 30 days has elapsed after the date 
of the transmission of such certification. 
SEC. 123. LIMITATION ON FINAL ASSEMBLY OF VH-71 PRESI-
DENTIAL TRANSPORT HELICOPTERS. 
(a) IN GENERAL.—No funds appropriated pursuant to 
an authorization of appropriations or otherwise made 
available for aircraft procurement, Navy, may be obligated 
or expended for the final assembly of more than five VH- 
71 Presidential transport helicopters. 
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(b) EXCEPTION.—The limitation in subsection (a) does 
not apply to a helicopter if the final assembly of the heli-
copter is carried out in the United States. 
SEC. 124. LIMITATION ON OPERATIONAL DEPLOYMENT OF 
WEAPONS SYSTEM THAT USES TRIDENT MIS-
SILES 
CONVERTED 
TO 
CARRY 
CONVEN-
TIONAL PAYLOADS. 
(a) LIMITATION.—No funds appropriated or otherwise 
available to the Department of Defense for fiscal year 2008 
may be obligated or expended for operational deployment 
of a weapons system that uses Trident missiles converted 
to carry conventional payloads. 
(b) NOTIFICATION.—Within 30 days after the date on 
which the Secretary of Defense determines that the weapons 
system referred to in subsection (a) is fully functional and 
that fielding the weapons system is necessary to meet mili-
tary requirements, the Secretary shall submit to the con-
gressional defense committees notification, in writing, of 
that determination. 
SEC. 125. PROGRAM TO PROVIDE CONTRACTORS WITH CAP-
ITAL EXPENDITURE INCENTIVES. 
(a) IN GENERAL.—From amounts made available for 
procurement, Navy, for shipbuilding and conversion, for fis-
cal year 2008 or any fiscal year thereafter, the Secretary 
of the Navy may carry out a program under which the Sec-
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retary provides contractors with capital expenditure incen-
tives to support investment in facilities and process im-
provements for current and future Navy vessel construction 
contracts. 
(b) USE OF FUNDS.—Amounts provided to a con-
tractor under the program may be used for improvements 
that benefit any one or more of the shipbuilding programs 
in the contractor’s facilities. 
(c) ANALYSIS REQUIRED.—Amounts may be provided 
to a contractor under the program only if the contractor 
presents a proposal containing a fully supported analysis 
that demonstrates that the investment would lead to ship 
construction or life cycle savings to the Federal Government 
by— 
(1) improvements in design, material, tech-
nology, or manufacturing process; 
(2) investing in shipyard infrastructure that 
would support construction process improvement; 
(3) investing in specialized workforce training, 
including apprenticeship training programs; or 
(4) investing in construction process that would 
reduce life cycle maintenance costs of the vessels under 
construction at the contractor’s facilities. 
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(d) APPROVAL.—The Secretary shall not provide 
amounts to a contractor under the program unless the Sec-
retary determines that— 
(1) the analysis contained in the proposal is 
sound; and 
(2) providing those amounts is in the best inter-
ests of the United States. 
(e) DEMONSTRATION OF SAVINGS TO THE FEDERAL 
GOVERNMENT.—The Secretary shall not provide amounts 
to a contractor under the program unless the Secretary and 
the contractor, as part of the approval process for a pro-
posal, agree to measures, benchmarks, and recoupment pro-
visions in the event the investment fails to demonstrate sav-
ings to the Federal Government. 
(f) REPORT.—At the end of each fiscal year, beginning 
with fiscal year 2008, the Secretary shall submit to the con-
gressional defense committees a report on the activities car-
ried out under this section during that fiscal year. The re-
port shall describe each incentive approved during that fis-
cal year and, for each such incentive, include an estimate 
of the costs of providing the incentive and an analysis of 
the potential savings to the Federal Government from the 
investment. 
(g) REGULATIONS.—The Secretary shall prescribe reg-
ulations to carry out this section. The initial regulations 
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shall be prescribed not later than 180 days after the date 
of the enactment of this Act. 
SEC. 126. LIMITATION ON USE OF SHIPBUILDING AND CON-
VERSION, NAVY, FUNDS FOR EMPLOYMENT 
OF NONIMMIGRANT WORKERS. 
(a) LIMITATION ON THE USE OF FUNDS.— 
(1) IN GENERAL.—Except as provided in sub-
section (c), funds appropriated or otherwise available 
to the Department of Defense for Shipbuilding and 
Conversion, Navy, for fiscal year 2008 or any fiscal 
year thereafter may not be used for the purpose of 
ship construction at the facility of a contractor who, 
for the purposes of United States Navy ship construc-
tion, employs or contracts for foreign workers who are 
legally present in the United States under a H2B 
visa. 
(2) CONTRACTORS
COVERED.—Paragraph (1) 
applies to prime contractors and subcontracts at any 
tier under such contracts. 
(b) ANALYSIS OF SHIPYARD LABOR.— 
(1) IN GENERAL.—The Assistant Secretary of the 
Navy for Research, Development, and Acquisition 
shall maintain a five-year forecast of potential labor 
surplus, by shipyard, for each of the shipyards that 
construct ships for the Navy based on the Navy’s an-
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nual naval vessel construction plan required by sec-
tion 231 of title 10, United States Code. 
(2) INCLUSION IN PLAN.—The forecast required 
by paragraph (1) shall be included in each plan sub-
mitted in accordance with section 231 of title 10, 
United States Code. 
(c) EXCEPTION FOR SHORTAGE OF UNITED STATES 
WORKERS.—The Secretary of the Navy may waive the re-
striction in subsection (a) for a contractor for a fiscal year 
if the contractor certifies to the Secretary for that fiscal year 
that— 
(1) the contractor has fully complied with all ex-
isting laws and regulations regarding labor certifi-
cations in support of an application for alien em-
ployment via the H2B visa process; 
(2) a Department of Labor regional certifying of-
ficer has issued a determination approving such an 
application, in accordance with existing laws and 
regulations; and 
(3) the contractor has attempted to recruit 
United States shipyard workers in the geographical 
area surrounding shipyards identified in the most re-
cent Navy annual naval vessel construction plan as 
having potential labor surpluses, in a manner that is 
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consistent with procedures which shall be prescribed 
by the Secretary and that— 
(A) is appropriate for the occupation; 
(B) offers, at a minimum, the same trans-
portation and housing benefits to be offered to 
alien employees; and 
(C) is most likely to bring responses. 
SEC. 127. LIMITATION ON CONCURRENT DESIGN AND CON-
STRUCTION ON FIRST SHIP OF A SHIP-
BUILDING PROGRAM. 
(a) IN GENERAL.—For any shipbuilding program that 
is a major defense acquisition program under section 2430 
of title 10, United States Code, the start of construction of 
a first ship (as defined in subsection (b)) may not occur 
until the Secretary of the Navy certifies to the congressional 
defense committees that the detailed design of the ship is 
completed and approved by the relevant design certification 
agents, to a level determined by the Secretary to be accept-
able for commencement of construction, via a report de-
scribed in subsection (d). 
(b) FIRST SHIP.—For purposes of subsection (a), a 
ship is a first ship if— 
(1) the ship is the first ship to be constructed 
under that shipbuilding program; 
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(2) the shipyard at which the ship is to be con-
structed has not previously started construction on a 
ship under that shipbuilding program; or 
(3) the ship is the first ship to be constructed fol-
lowing a major design change, characterized as a 
change in flight, under that shipbuilding program. 
(c) START OF CONSTRUCTION.—For purposes of sub-
section (a), start of construction means the beginning of fab-
rication of the hull and superstructure of the ship. 
(d) REPORT.—The Secretary of the Navy shall provide 
the certification required by subsection (a) in a report that 
provides an assessment of each of the following: 
(1) The degree of completion of the detailed de-
sign drawings and specifications for the ship. 
(2) The readiness of the shipyard facilities and 
workforce to begin construction. 
(3) The maturity level of research and develop-
ment efforts of any new technologies that will be used 
in the ship’s command and control systems, weapons 
systems, sensor systems, mechanical or electrical sys-
tems, or hull. 
(4) The ability to meet cost and schedule esti-
mates within the applicable program baseline. 
(e) APPLICABILITY.— 
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(1) NEW SHIPBUILDING PROGRAMS.—This sec-
tion applies to each shipbuilding program beginning 
after the date of the enactment of this Act. 
(2) MAJOR
DESIGN
CHANGES
FOR
EXISTING 
SHIPBUILDING
PROGRAMS.—In addition, subsection 
(b)(3) applies to any major design change occurring 
after the date of the enactment of this Act to any 
shipbuilding program in existence as of the date of 
the enactment of this Act. 
Subtitle D—Air Force Programs 
SEC. 131. LIMITATION ON RETIRING C-5 AIRCRAFT. 
(a) CERTIFICATION AND COST ANALYSIS REQUIRED.— 
The Secretary of the Air Force may not proceed with a deci-
sion to retire C-5A aircraft from the inventory of the Air 
Force in any number that would reduce the total number 
of such aircraft in the inventory below 111 until 45 days 
after the Secretary of the Air Force submits to the congres-
sional defense committees the following: 
(1) The Secretary’s certification that— 
(A) the Secretary is able to comply with 
subsection (g) of section 8062 of title 10, United 
States Code; and 
(B) retiring the aircraft will not signifi-
cantly increase operational risk of not meeting 
the National Military Strategy. 
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(2) A cost analysis with respect to the aircraft 
to be retired that— 
(A) evaluates which alternative is more pru-
dent in meeting strategic airlift mobility require-
ments— 
(i) to retire the aircraft; or 
(ii) to perform the Avionics Moderniza-
tion Program (AMP) and the Reliability 
Enhancement and Re-engining Program 
(RERP) on the aircraft; and 
(B) evaluates the cost of C-17 aircraft to re-
place the capability of the aircraft to be retired. 
(b) ADDITIONAL REQUIREMENTS
FOR COST ANAL-
YSIS.—The cost analysis required by subsection (a)(2) shall 
be performed by a Federally Funded Research and Develop-
ment Center selected by the Air Force and shall conform 
to the following requirements: 
(1) The cost analysis shall include one analysis 
that uses ‘‘constant year dollars’’ and one analysis 
that uses ‘‘then year dollars’’. 
(2) For each such analysis, the time period cov-
ered by the analysis shall be the expected service life 
of the aircraft concerned. 
(3) For each such analysis, the ownership costs 
evaluated shall include costs for— 
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