PUBLIC LAW 106-65—OCT. 5, 1999 113 STAT. 741 (C) Contingency operations. (D) Domestic shipbuilding industrial base. SEC. 1014. AUXILIARY VESSELS ACQUISITION PROGRAM FOR THE DEPARTMENT OF DEFENSE. (a) PROGRAM AUTHORIZATION.— (1) Chapter 631 of title 10, United States Code, is amended by adding at the end the following new section: ^'§ 7233. Auxiliary vessels: extended lease authority "(a) AUTHORIZED CONTRACTS.—Subject to subsection (b), the Secretary of the Navy may enter into contracts with private United States shipyards for the construction of new surface vessels to be acquired on a long-term lease basis by the United States from the shipyard or other private person for any of the following: "(1) The combat logistics force of the Navy. "(2) The strategic sealift force of the Navy. "(3) Other auxiliary support vessels for the Department of Defense. "(b) CONTRACTS REQUIRED TO BE AUTHORIZED BY LAW.—A contract may be entered into under subsection (a) with respect to a specific vessel only if the Secretary is specifically authorized by law to enter into such a contract with respect to that vessel. As part of a request to Congress for enactment of any such authorization by law, the Secretary of the Navy shall provide to Congress the Secretary's findings under subsection (g). "(c) TERM OF CONTRACT.—In this section, the term 'long-term lease' means a lease, bareboat charter, or conditional sale agreement with respect to a vessel the term of which (including any option period) is for a period of 20 years or more. "(d) OPTION TO BUY.— ^A contract entered into under subsection (a) may include options for the United States to purchase one or more of the vessels covered by the contract at any time during, or at the end of, the contract period (including any option period) upon payment of an amount equal to the lesser of (1) the unamortized portion of the cost of the vessel plus amounts incurred in connection with the termination of the financing arrangements associated with the vessel, or (2) the fair market value of the vessel. "(e) DOMESTIC CONSTRUCTION.—The Secretary shall require in any contract entered into under this section that each vessel to which the contract applies— "(1) shall have been constructed in a shipyard within the United States; and "(2) upon delivery, shall be documented under the laws of the United States. "(f) VESSEL OPERATION. —(1) The Secretary may operate a vessel held by the Secretary under a long-term lease under this section through a contract with a United States corporation with experience in the operation of vessels for the United States. Any such contract shall be for a term as determined by the Secretary. "(2) The Secretary may provide a crew for any such vessel using civil service mariners only after an evaluation taking into account— "(A) the fully burdened cost of a civil service crew over the expected useful life of the vessel; "(B) the effect on the private sector manpower pool; and
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