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Title 10, Armed ForcesRelease 119-110

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

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

Last updated Sep 22, 2026|Official source

Summary

The Secretary of the Navy can award a ship-dismantling contract on a net-cost basis. If the Secretary does that, the contract must allow the contractor to keep the money from selling scrap and reusable parts taken from the ship. Net-cost basis means the payment to the contractor is lowered by the contractor’s estimate of how much scrap and reusable items will be worth. Scrap means items only worth their raw material. Reusable item means a demilitarized part or removable piece the Navy says it does not need but could be sold.

Full Legal Text

Title 10, §8675a

Armed Forces, Source: USLM XML via OLRC

(a)Authority for Net-Cost Basis Contracts.—
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)Retention by Contractor of Proceeds of Sale of Scrap and Reusable Items.—
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)Definitions.—
In this section: (1)
(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

Sep 22, 2026

Release point: 119-110