§7305. Vessels stricken from Naval Vessel Register: sale

(a) Appraisal of Vessels Stricken From Naval Vessel Register.-The Secretary of the Navy shall appraise each vessel stricken from the Naval Vessel Register under section 7304 of this title.

(b) Authority To Sell Vessel.-If the Secretary considers that the sale of the vessel is in the national interest, the Secretary may sell the vessel. Any such sale shall be in accordance with regulations prescribed by the Secretary for the purposes of this section.

(c) Procedures for Sale.-(1) A vessel stricken from the Naval Vessel Register and not subject to disposal under any other law may be sold under this section. In such a case, the Secretary may sell the vessel to the highest acceptable bidder, regardless of the appraised value of the vessel, after the vessel is publicly advertised for sale for a period of not less than 30 days.

(2) If the Secretary determines that the bid prices for a vessel received after advertising under paragraph (1) are not acceptable and that readvertising will serve no useful purpose, the Secretary may sell the vessel by negotiation to the highest acceptable bidder if-

(A) each responsible bidder has been notified of intent to negotiate and has been given a reasonable opportunity to negotiate; and

(B) the negotiated price is-

(i) higher than the highest rejected price of any responsible bidder; or

(ii) reasonable and in the national interest.

(d) Applicability.-This section does not apply to a vessel the disposal of which is authorized by the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq.), if it is to be disposed of under that Act.

(Added Pub. L. 103–160, div. A, title VIII, §824(b), Nov. 30, 1993, 107 Stat. 1708 .)

References in Text

The Federal Property and Administrative Services Act of 1949, as amended, referred to in subsec. (d), is act June 30, 1949, ch. 288, 63 Stat. 377 , as amended. Provisions of the act relating to management and disposal of Government property are classified to chapter 10 (§471 et seq.) of Title 40, Public Buildings, Property, and Works. For complete classification of this Act to the Code, see Short Title note set out under section 471 of Title 40 and Tables.

Prior Provisions

A prior section 7305, acts Aug. 10, 1956, ch. 1041, 70A Stat. 451 ; Dec. 12, 1980, Pub. L. 96–513, title V, §513(27), 94 Stat. 2933 , related to sale of vessels stricken from Naval Vessel Register, prior to repeal by Pub. L. 103–160, §824(b).

Executive Order No. 11765

Ex. Ord. No. 11765, Jan. 21, 1974, 39 F.R. 2577, related to sale of vessels of the Navy stricken from Naval Vessel Register pursuant to section 7304 of this title regardless of their appraised value under authority of former subsec. (l) of this section.

Section Referred to in Other Sections

This section is referred to in title 42 section 6939d.