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Contract authority for submarine tender program

Division A · Title I: Procurement · Subtitle C: Navy Programs

Plain-language summaryAI

The Navy is allowed to enter into contracts to buy up to two new submarine tenders. Payments for these contracts can be made in stages over time. If the contract is ended early, the government's financial responsibility is limited to the amount already paid or obligated.

AI-generated from this section’s text — a quick orientation, not a substitute for the full text below. Not legal advice.

Section Text · Sec. 126.
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(a) Contract authority

The Secretary of the Navy may enter into one or more contracts for the procurement of not more than two AS(X) submarine tenders.

(b) Use of incremental funding

With respect to a contract entered into under subsection (a), the Secretary of the Navy may use incremental funding to make payments under the contract.

(c) Liability

Any contract entered into under subsection (a) shall provide that—

(1)

any obligation of the United States to make a payment under the contract is subject to the availability of appropriations for that purpose; and

(2)

the total liability of the Federal Government for termination of the contract shall be limited to the total amount of funding obligated to the contract at the time of termination.