H. R. 1585—27 
(3) The readiness of the shipyard facilities and workforce 
to begin construction. 
(4) The Navy’s estimated cost at completion and the ade-
quacy of the budget to support the estimate. 
(5) The Navy’s estimated delivery date and description 
of any variance to the contract delivery date. 
(6) The extent to which adequate processes and metrics 
are in place to measure and manage program risks. 
(c) APPLICABILITY.—This section applies to each major ship-
building program beginning after the date of the enactment of 
this Act. 
(d) DEFINITIONS.—For the purposes of subsection (a): 
(1) START OF CONSTRUCTION.—The term ‘‘start of construc-
tion’’ means the beginning of fabrication of the hull and super-
structure of the ship. 
(2) FIRST SHIP.—The term ‘‘first ship’’ applies to a ship 
if— 
(A) the ship is the first ship to be constructed under 
that shipbuilding program; or 
(B) the shipyard at which the ship is to be constructed 
has not previously started construction on a ship under 
that shipbuilding program. 
(3) MAJOR SHIPBUILDING PROGRAM.—The term ‘‘major ship-
building program’’ means a program for the construction of 
combatant and support vessels required for the naval vessel 
force, as reported within the annual naval vessel construction 
plan required by section 231 of title 10, United States Code. 
(4) PRODUCTION READINESS REVIEW.—The term ‘‘production 
readiness review’’ means a formal examination of a program 
prior to the start of construction to determine if the design 
is ready for production, production engineering problems have 
been resolved, and the producer has accomplished adequate 
planning for the production phase. 
SEC. 125. LITTORAL COMBAT SHIP (LCS) PROGRAM. 
Section 124 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109–163; 119 Stat. 3157) is amended by 
striking subsections (a), (b), (c), and (d) and inserting the following: 
‘‘(a) LIMITATION OF COSTS.— 
‘‘(1) IN GENERAL.—The total amount obligated or expended 
for the procurement costs of post-2007 LCS vessels shall not 
exceed $460,000,000 per vessel. 
‘‘(2) PROCUREMENT COSTS.—For purposes of this section, 
procurement costs shall include all costs for plans, basic 
construction, change orders, electronics, ordnance, contractor 
support, and other costs associated with completion of produc-
tion drawings, ship construction, test, and delivery, including 
work performed post-delivery that is required to meet original 
contract requirements. 
‘‘(3) POST-2007 LCS VESSELS.—For purposes of this section, 
the term ‘post-2007 LCS vessel’ means a vessel in the Littoral 
Combat Ship (LCS) class of vessels, the procurement of which 
is funded from amounts appropriated pursuant to an authoriza-
tion of appropriations or otherwise made available for fiscal 
year 2008 or any fiscal year thereafter. 
‘‘(b) CONTRACT TYPE.—The Secretary of the Navy shall employ 
a fixed-price type contract for construction of post-2007 LCS vessels.
H. R. 1585—28 
‘‘(c) LIMITATION OF GOVERNMENT LIABILITY.—The Secretary of 
the Navy shall not enter into a contract, or modify a contract, 
for construction or final delivery of post-2007 LCS vessels if the 
limitation of the Government’s cost liability, when added to the 
sum 
of 
other 
budgeted 
procurement 
costs, 
would 
exceed 
$460,000,000 per vessel. 
‘‘(d) ADJUSTMENT OF LIMITATION AMOUNT.—The Secretary of 
the Navy may adjust the amount set forth in subsections (a)(1) 
and (c) for vessels referred to in such subsections by the following: 
‘‘(1) The amounts of increases or decreases in costs attrib-
utable to compliance with changes in Federal, State, or local 
laws enacted after September 30, 2007. 
‘‘(2) The amounts of outfitting costs and costs required 
to complete post-delivery test and trials.’’. 
Subtitle D—Air Force Programs 
SEC. 131. LIMITATION ON JOINT CARGO AIRCRAFT. 
No funds appropriated pursuant to an authorization of appro-
priations or otherwise made available for procurement, or for 
research, development, test, and evaluation, may be obligated or 
expended for the Joint Cargo Aircraft until 30 days after the Sec-
retary of Defense submits to the congressional defense committees 
each of the following: 
(1) The Air Force Air Mobility Command’s Airlift Mobility 
Roadmap. 
(2) The Department of Defense Intra-Theater Airlift 
Capabilities Study. 
(3) The Department of Defense Joint Intra-Theater Dis-
tribution Assessment. 
(4) The Joint Cargo Aircraft Functional Area Series Anal-
ysis. 
(5) The Joint Cargo Aircraft Analysis of Alternatives. 
(6) The Joint Intra-Theater Airlift Fleet Mix Analysis. 
(7) The Secretary’s certification that— 
(A) there is, within the Department of the Army, 
Department of the Air Force, Army National Guard, or 
Air National Guard, a capability gap or shortfall with 
respect to intra-theater airlift; and 
(B) validated requirements exist to fill that gap or 
shortfall through procurement of the Joint Cargo Aircraft. 
SEC. 132. CLARIFICATION OF LIMITATION ON RETIREMENT OF U–2 
AIRCRAFT. 
Section 133(b) of the John Warner National Defense Authoriza-
tion Act for Fiscal Year 2007 (Public Law 109–364; 120 Stat. 2112) 
is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘After fiscal year 2007’’ and inserting 
‘‘For each fiscal year after fiscal year 2007’’; and 
(B) by inserting after ‘‘Secretary of Defense’’ the fol-
lowing: ‘‘, in that fiscal year,’’; and 
(2) in paragraph (2)— 
(A) by inserting after ‘‘Department of Defense’’ the 
following: ‘‘in a fiscal year’’; and