§1155. Eligible shipyards; materials; conditions of contracts; limitation to American shipyards; American materials, waiver; ability of bidders; filing bids and data

All construction in respect of which a construction-differential subsidy is allowed under this subchapter shall be performed in a shipyard of the United States as the result of competitive bidding, after due advertisement, with the right reserved in the Secretary of Transportation to disapprove, any or all bids. In all such construction the shipbuilder, subcontractors, materialmen, or suppliers shall use, so far as practicable, only articles, materials, and supplies of the growth, production, or manufacture of the United States as defined in paragraph K ¹ of section 1401 of title 19; Provided, however, That with respect to other than major components of the hull, superstructure, and any material used in the construction thereof, (1) if the Secretary of Transportation determines that the requirements of this sentence will unreasonably delay completion of any vessel beyond its contract delivery date, and (2) if such determination includes or is accompanied by a concise explanation of the basis therefor, then the Secretary of Transportation may waive such requirements to the extent necessary to prevent such delay. No shipbuilder shall be deemed a responsible bidder unless he possesses the ability, experience, financial resources, equipment, and other qualifications necessary properly to perform the proposed contract. Each bid submitted to the Secretary of Transportation shall be accompanied by all detailed estimates upon which it is based. The Secretary of Transportation may require that the bids of any subcontractors, or other pertinent data, accompany such bid. All such bids and data relating thereto shall be kept on file until disposed of as provided by law. For the purposes of this subchapter V, the term "shipyard of the United States" means shipyards within any of the United States and the Commonwealth of Puerto Rico.

(June 29, 1936, ch. 858, title V, §505, 49 Stat. 1998 ; June 23, 1938, ch. 600, §§17, 40(a), 52 Stat. 958 , 964; Oct. 25, 1951, ch. 562, §3(4), 65 Stat. 639 ; Pub. L. 86–624, §35(a), July 12, 1960, 74 Stat. 421 ; Pub. L. 91–469, §§10, 35(a), Oct. 21, 1970, 84 Stat. 1022 , 1035; Pub. L. 97–31, §12(84), Aug. 6, 1981, 95 Stat. 161 .)

References in Text

Paragraph K of section 1401 of title 19, referred to in text, which was classified to par. (k) of section 1401 of Title 19, Customs Duties, was redesignated par. (h) of section 1401 of Title 19 by Pub. L. 91–271, title III, §301(c)(1), June 2, 1970, 84 Stat. 288 .

Amendments

1981-Pub. L. 97–31 substituted "Secretary of Transportation" for "Secretary of Commerce" wherever appearing.

1970-Pub. L. 91–469 struck out subsec. (a) designation, struck out of first sentence "within the continental limits" and "the applicant to reject, and in" after "shipyard" and "right reserved in", provided for waiver of use of American materials, substituted definition of "shipyard of the United States" for definition of "continental limits of the United States", and struck out: subsec. (b) provisions for conditions of contracts, reports as to costs and net profits, limitation on profit, payment to Secretary of excess profit, subdivision of contracts, inspection of records and premises, and contracts for scientific equipment; subsec. (c) provisions as to method of determining profit and limitation on salaries; subsec. (d) provisions for utilization of Treasury Department employees; and subsec. (e) provisions for rescinding approval of bid on refusal of bidder to comply with conditions, new bids, and construction in navy yards; and substituted "Secretary of Commerce" for "Commission" in three places, respectively.

1960-Subsec. (a). Pub. L. 86–624 inserted definition of "continental limits of the United States."

1951-Subsec. (a). Act Oct. 25, 1951, substituted "on file until disposed of as provided by law" for "permanently on file" in last sentence.

1938-Subsec. (a). Act June 23, 1938, §40(a), substituted "construction-differential subsidy is allowed" for "subsidy is allowed".

Subsec. (b). Act June 23, 1938, §17, made section inapplicable to contracts or other arrangements entered into under this subchapter by the terms of which the United States undertakes to pay only for national-defense features.

Section Referred to in Other Sections

This section is referred to in sections 1152, 1176 of this Appendix.

¹ See References in Text note below.