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Title 10 — Armed ForcesRelease 119-73not60

§8675a Vessels Stricken From Naval Vessel Register: Contracts for Dismantling on Net-cost Basis

Title 10 › Subtitle Subtitle C— Navy and Marine Corps › Part IV— GENERAL ADMINISTRATION › Chapter 863— NAVAL VESSELS › § 8675a

Last updated Apr 3, 2026|Official source

Summary

The Navy can let a company dismantle a ship under a "net-cost" contract. The contract must say the company can keep the money it gets from selling scrap and reusable parts taken from the ship. "net-cost" means the payment to the company is lowered by the company’s own estimate of what those scrap and reusable items will sell for. "Scrap" is stuff worth only for its raw material. "Reusable item" is a demilitarized part or removable piece the Navy no longer needs but can be sold.

Full Legal Text

Title 10, §8675a

Armed Forces — Source: USLM XML via OLRC

(a)When the Secretary of the Navy awards a contract for the dismantling of a vessel stricken from the Naval Vessel Register, the Secretary may award the contract on a net-cost basis.
(b)When the Secretary awards a contract on a net-cost basis under subsection (a), the Secretary shall provide in the contract that the contractor may retain the proceeds from the sale of scrap and reusable items removed from the vessel dismantled under the contract.
(c)In this section:
(1)The term “net-cost basis”, with respect to a contract for the dismantling of a vessel, means that the amount to be paid to the contractor under the contract for dismantling and for removal and disposal of hazardous waste material is discounted by the offeror’s estimate of the value of scrap and reusable items that the contractor will remove from the vessel during performance of the contract.
(2)The term “scrap” means personal property that has no value except for its basic material content.
(3)The term “reusable item” means a demilitarized component or a removable portion of a vessel or equipment that the Secretary of the Navy has identified as excess to the needs of the Navy but which has potential resale value on the open market.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2018—Pub. L. 115–232 renumbered section 7305a of this title as this section.

Statutory Notes and Related Subsidiaries

Effective Date

of 2018 AmendmentAmendment by Pub. L. 115–232 effective Feb. 1, 2019, with provision for the coordination of

Amendments

and special rule for certain redesignations, see section 800 of Pub. L. 115–232, set out as a note preceding section 3001 of this title.

Reference

Citations & Metadata

Citation

10 U.S.C. § 8675a

Title 10 — Armed Forces

Last Updated

Apr 3, 2026

Release point: 119-73not60