14 U.S.C. § 939: Accounting for industrial work

Summary

The Secretary can make rules about how the Coast Guard keeps track of work done at the Coast Guard Yard and similar Coast Guard shops. Any order for that work must have money moved in advance to cover the estimated cost. That money goes into accounts the Secretary sets up and can be used for materials, supplies, equipment, and civilian labor, including overhead and maintenance. When the job is finished, the money transferred is adjusted so it equals the actual cost under the Secretary’s rules or the rules below. The Coast Guard and the customer can agree to a cost-plus-incentive-fee order. If they do, part of the final cost adjustment can be given as a bonus to wage-grade industrial employees who complete the work. They must first agree that those employees will try to improve delivery time or technical performance. If the workers meet the agreed target, the agreed bonus is paid to them and the rest of the adjustment goes back to the appropriation for the order.

Title 14, §939

Coast Guard, Source: USLM XML via OLRC

(a)In General.—

The Secretary may prescribe regulations governing accounting for industrial work, including charges for overhead for civilian labor and for maintenance of industrial plant and equipment, performed at the Coast Guard Yard or such similar Coast Guard industrial establishments as he may designate. Any orders placed for such industrial work shall be covered by a transfer or advance of funds to cover the estimated cost thereof, and shall be credited to such accounts as may be necessary and established by the Secretary to carry out the provisions of this section. Accounts so established shall be available for materials, supplies, or equipment, and civilian labor, including overhead and maintenance, required in performing the work ordered. Upon completion of an order an adjustment will be made to make the amount transferred or advanced equal to the actual cost as computed in accordance with the accounting regulations prescribed by the Secretary or in accordance with subsection (b).

(b)Incentive Contracts.—

(1)The parties to an order for industrial work to be performed by the Coast Guard Yard or a Coast Guard industrial establishment designated under subsection (a) may enter into an order or a cost-plus-incentive-fee order in accordance with this subsection.

(2)If such parties enter into such an order or a cost-plus-incentive-fee order, an agreed-upon amount of any adjustment described in subsection (a) may be distributed as an incentive to the wage-grade industrial employees who complete the order.

(3)Before entering into such an order or cost-plus-incentive-fee order such parties must agree that the wage-grade employees of the Coast Guard Yard or Coast Guard industrial establishment will take action to improve the delivery schedule or technical performance agreed to in the order for industrial work to which such parties initially agreed.

(4)Notwithstanding any other provision of law, if the industrial workforce of the Coast Guard Yard or Coast Guard industrial establishment satisfies the performance target established in such an order or cost-plus-incentive-fee order—

(A)the adjustment to be made pursuant to subsection (a) shall be reduced by an agreed-upon amount and distributed to such wage-grade industrial employees; and

(B)the remainder of the adjustment shall be credited to the appropriation for such order current at that time.

Notes & Related Subsidiaries

Historical and Revision Notes

This section is intended to eliminate a very cumbersome and inefficient method of accounting for industrial jobs at the Coast Guard Yard and other shore establishments where industrial work may be undertaken. Under existing law several accounts must be kept current for each job in progress. Under this statute the working fund would be available for all types of expenditures in connection with a job and the breakdown into separate accounts could be done after the job is complete. The other armed forces have provisions of law which permit a working fund similar to the one provided by this section. 81st Congress,

House Report No. 557

Editorial Notes

Amendments

2018—Pub. L. 115–282, § 307, designated existing provisions as subsec. (a) and inserted heading, substituted “Secretary or in accordance with subsection (b).” for “Secretary.”, and added subsec. (b). Pub. L. 115–282, § 107(b), renumbered section 648 of this title as this section.

§939 Accounting for Industrial Work