§939 Accounting for industrial work

Summary

The Secretary can make rules for how the Coast Guard records and pays for industrial work done at the Coast Guard Yard or other Coast Guard shops. Any work order must have money moved or advanced up front to cover the estimated cost and put into special accounts. Those accounts pay for materials, supplies, equipment, and civilian labor, including overhead and maintenance. When the job is finished, the money is adjusted so the amount moved equals the actual cost under the Secretary’s accounting rules or the incentive rules below. The people ordering the work can use a regular order or a cost-plus-incentive-fee order. They can agree that part of any final adjustment will be paid as a bonus to wage-grade industrial workers who finish the job. Before using this kind of order, the parties must agree the wage-grade workers will try to speed up delivery or improve technical performance. If the workforce meets the agreed performance target, the agreed bonus is paid to those workers and the rest goes back to the funding account for that order.