644 
(i) in subparagraph (A), by inserting 
‘‘(other than an excluded vessel)’’ after ‘‘any 
used vessel’’; 
(ii) in subparagraph (B), by inserting 
‘‘(other than an excluded vessel)’’ after ‘‘a 
used vessel’’; 
(iii) by striking subparagraph (C) and 
inserting the following new subparagraph 
(C): 
‘‘(C) The Secretary may only use the authority under 
this paragraph to purchase more than 10 foreign-con-
structed vessels if, for each such vessel so purchased after 
the tenth vessel, the Secretary purchases two vessels under 
paragraph (4).’’. 
(iv) in subsection (D), by striking 
‘‘subparagraph (A)’’ and inserting ‘‘this 
paragraph’’; 
(v) by striking subparagraph (E) and 
redesignating subparagraphs (F) and (G) 
as subparagraphs (E) and (F), respectively; 
and 
(B) by adding at the end the following new 
paragraph (4): 
‘‘(4) A vessel purchased under this paragraph is a ves-
sel— 
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‘‘(A) purchased using funds in the National De-
fense Sealift Fund 
‘‘(B) constructed in a ship yard located in the 
United States; and 
‘‘(C) the construction of which is managed by a 
commercial vessel construction manager.’’; and 
(2) in subsection (k), by adding at the end the 
following new paragraph: 
‘‘(6) The term ‘excluded vessel’ means a vessel 
that was— 
‘‘(A) constructed or substantially modified 
by an entity located in the People’s Republic of 
China; or 
‘‘(B) constructed by a Chinese military 
company, as such term is defined in section 
1260H(d)(1) of the William M. (Mac) Thorn-
berry National Defense Authorization Act for 
Fiscal Year 2021 (Public Law 116–283; 10 
U.S.C. 113 note).’’. 
(b) TECHNICAL CORRECTIONS.—Section 2218 of title 
10, United States Code, as amended by subsection (a), is 
further amended— 
(1) in subsection (c)(1)(D), by striking ‘‘section 
11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. 
4405)’’ and inserting ‘‘section 57100 of title 46’’; 
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(2) in subsection (f)(2), by striking ‘‘section 
1424(b) of Public Law 101–510 (104 Stat. 1683)’’ 
and inserting ‘‘section 1424(b) of the National De-
fense Authorization Act for Fiscal Year 1991 (Public 
Law 101–510; 10 U.S.C. 8661 note)’’; 
(3) in subsection (k)— 
(A) in paragraph (2)(A), by striking ‘‘sec-
tion 1424 of Public Law 101–510 (104 Stat. 
1683)’’ and inserting ‘‘section 1424 of the Na-
tional Defense Authorization Act for Fiscal Year 
1991 (Public Law 101–510; 10 U.S.C. 8661 
note)’’; and 
(B) in paragraph (3)(B), by striking ‘‘sec-
tion 11 of the Merchant Ship Sales Act of 1946 
(50 U.S.C. 4405)’’ and inserting ‘‘section 57100 
of title 46’’. 
SEC. 1013. REQUIREMENTS FOR AMPHIBIOUS WARFARE 
SHIP FORCE STRUCTURE. 
Section 8062 of title 10, United States Code, is amend-
ed— 
(1) in subsection (e)— 
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (3), by striking the period 
and inserting ‘‘; and’’; and 
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(C) by adding at the end the following new 
paragraph: 
‘‘(4) the Navy adjusts scheduled maintenance 
and repair actions to maintain the minimum number 
of available amphibious warfare ships to meet oper-
ational requirements.’’; and 
(2) by amending subsection (h) to read as fol-
lows: 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The term ‘amphibious warfare ship’ means 
a ship that is classified as an amphibious assault 
ship (general purpose) (LHA), an amphibious assault 
ship (multi-purpose) (LHD), an amphibious trans-
port dock (LPD), or a dock landing ship (LSD). 
‘‘(2) The term ‘available’, with respect to an am-
phibious warfare ship, means that the ship— 
‘‘(A) does not have a temporary critical 
limiting restriction preventing the conduct of 
training and operations; 
‘‘(B) is not in a maintenance phase; 
‘‘(C) is not conducting post-delivery test 
and trials; and 
‘‘(D) is not preparing to decommission.’’. 
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SEC. 1014. DEFINITION OF SHORT-TERM WORK FOR PUR-
POSES OF NAVY CONSTRUCTION OF COMBAT-
ANT AND ESCORT VESSELS AND ASSIGNMENT 
OF VESSEL PROJECTS. 
Section 8669a(c)(4) of title 10, United States Code, is 
amended by striking ‘‘12 months’’ and inserting ‘‘18 
months’’. 
SEC. 1015. NAVY SENIOR TECHNICAL AUTHORITY. 
Section 8669b of title 10, United States Code, is 
amended— 
(1) in subsection (a)(2), by amending subpara-
graph (B) to read as follows: 
‘‘(B) reports directly to the program execu-
tive officer.’’; and 
(2) in subsection (b)— 
(A) by inserting ‘‘(1)’’ before ‘‘Each Sen-
ior’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) Each Senior Technical Authority shall also be re-
sponsible for the determination that all design requirements 
for a vessel class are directly related to a key performance 
parameter or key system attribute established in the capa-
bility development document for the vessel class. Any re-
quirements that the Senior Technical Authority determines 
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are unnecessary to meet a key performance parameter or 
key system attribute shall not be approved.’’. 
SEC. 1016. ALTERNATIVE CONTRACTING AUTHORITY FOR 
UNITED STATES NAVAL SHIPS. 
Chapter 863 of title 10, United States Code, is amend-
ed by adding at the end the following new section: 
‘‘§ 8698. Alternative contracting authority for United 
States Naval Ships 
‘‘(a) AUTHORITY.—The Secretary of the Navy may 
enter into an agreement with an appropriate vessel con-
struction manager, other than the Department of the Navy, 
under which the vessel construction manager shall enter 
into a contract for the construction of a vessel to be des-
ignated as a United States Naval Ship and operated by 
civilian or commercial mariners. 
‘‘(b) DESIGN STANDARDS AND CONSTRUCTION PRAC-
TICES.—To the maximum extent practicable, the Secretary 
of the Navy shall ensure that a vessel constructed pursuant 
to this section is constructed using commercial design 
standards and commercial construction practices.’’. 
SEC. 1017. INCLUSION OF NAVY AMPHIBIOUS SHIP MAINTE-
NANCE AS A SEPARATE LINE ITEM IN OPER-
ATION AND MAINTENANCE BUDGET. 
(a) IN GENERAL.—The budget of the President sub-
mitted to Congress under section 1105(a) of title 31, United 
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States Code, for fiscal year 2027 and each subsequent fiscal 
year, shall display Navy amphibious ship maintenance as 
one or more separate line items under each subactivity 
within operation and maintenance, Navy. 
(b) ALLOCATION OF FISCAL YEAR 2026 FUNDS.—Of 
the funds authorized to be appropriated by this Act or other-
wise made available for fiscal year 2026 for operation and 
maintenance, Navy for ship maintenance, the Secretary of 
the Navy shall ensure that such funds are allocated to pro-
vide, on a per capita basis, an equal or greater amount 
of funding for each amphibious warfare ship that enters 
into maintenance availability during fiscal year 2026 rel-
ative to the amount of funding provided for each surface 
combatant ship. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘amphibious warfare ship’’— 
(A) means a ship designed with organic ca-
pability to engage in all the doctrinal types of 
amphibious operations across multiple domains 
and having characteristics that enable long dura-
tion, inter-theater, distributed maritime oper-
ations; and 
(B) includes any— 
(i) amphibious assault ship; 
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(ii) amphibious assault ship (multi- 
purpose); 
(iii) amphibious transport dock ; and 
(iv) dock landing ship. 
(2) The term ‘‘surface combatant ship’’— 
(A) means a surface ship that is designed 
primarily to engage in attacks against airborne, 
surface, subsurface, and shore targets; and 
(B) includes any— 
(i) guided missile cruiser; 
(ii) guided missile destroyer; 
(iii) guided missile frigate; and 
(iv) littoral combat ship. 
SEC. 1018. METRICS FOR BASIC AND FUNCTIONAL DESIGN 
FOR SHIP CONSTRUCTION. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of the Navy 
shall select a metric to measure the progression of basic and 
functional design with respect to the construction of ships. 
(b) REPORT.—Not later than 45 days after the selec-
tion of a metric under subsection (a), the Secretary of the 
Navy shall submit to the congressional defense committees 
a report on such metric that includes the justification for 
the selection of the metric. 
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(c) BASIC AND FUNCTIONAL DESIGN.—In this section, 
the term ‘‘basic and functional design’’ has the meaning 
given such term in section 8669c(1) of title 10, United 
States Code. 
SEC. 1019. AUTHORITY FOR SINGLE AWARD INDEFINITE DE-
LIVERY INDEFINITE QUANTITY CONTRACT 
FOR DESTROYER MAINTENANCE. 
The Secretary of the Navy shall seek to enter into a 
multi-year, single award indefinite delivery indefinite 
quantity contract to provide for the maintenance of the 
DDG–1000 class of destroyers. 
SEC. 1020. EVALUATION OF SITES FOR SHIPBUILDING AND 
SHIP REPAIR. 
(a) EVALUATION OF SITES.— 
(1) RESPONSIBILITY.—Not later than 60 days 
after the date of the enactment of this Act, the Sec-
retary of the Navy shall delegate to the Direct Report-
ing Program Manager of the Maritime Industrial 
Base Program primary responsibility for defining the 
requirements for evaluating sites to meet the capacity 
and needs of the Navy for shipbuilding and repair. 
(2) EVALUATION
REQUIREMENTS.—Not later 
than 180 days after the date on which the Secretary 
delegates to the Program Manager under paragraph 
(1), the Program Manager shall establish evaluation 
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requirements to be applied to sites being considered as 
sites for private or public shipyards and other de-
fense-production capabilities. In establishing such re-
quirements, the Program Manager shall consider— 
(A) the objective of accelerating United 
States shipbuilding efforts in both naval and ci-
vilian fleets; 
(B) how establishing or augmenting a site 
at an evaluated site could help meet Navy ship-
building and ship repair requirements; 
(C) whether a single site, smaller and more 
dispersed sites, or both would be optimal for aug-
menting shipbuilding and ship repair; 
(D) whether the best approach to meeting 
the timeline and capacity requirements for ship-
building and ship repair would be constructing 
new sites, using existing infrastructure, or both; 
and 
(E) whether a site meets the criteria under 
subsection (b). 
(b) CRITERIA.—The criteria under this subsection with 
respect to a site are that the site— 
(1) has the amount of space necessary to meet 
Navy requirements; 
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is amended in the item relating to section 3326 by inserting 
‘‘certain’’ before ‘‘positions’’. 
SEC. 1103. PAY FOR CREWS OF VESSELS. 
Section 5348 of title 5, United States Code, is amend-
ed— 
(1) in subsection (a), by adding before the period 
at the end the following: ‘‘, not to exceed the rate of 
pay for the Vice President under section 104 of title 
3’’; and 
(2) by adding at the end the following: 
‘‘(c) The limitation on pay under section 5307 shall 
not apply to an employee whose pay is fixed under sub-
section (a).’’. 
SEC. 1104. EXCEPTION TO LIMITATION ON RATE OF BASIC 
PAY FOR CREWS OF VESSELS. 
Section 5373 of title 5, United States Code, is amended 
by adding at the end the following: 
‘‘(c) Subsection (a) shall not apply to the authority 
of the Secretary of Defense or the Secretary of a military 
department to fix the annual rate of basic pay of officers 
and crews of vessels as is consistent with the public interest 
and in accordance with the prevailing rates and practices 
in the commercial maritime industry, except that the an-
nual rate of basic pay of such an employee may not be fixed 
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