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2026-07-06 09:52:37 -04:00

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---
type: "LegalText"
title: "10 U.S.C. § 8675a"
description: "Vessels stricken from Naval Vessel Register: contracts for dismantling on net-cost basis"
jurisdiction: "us"
corpus: "united_states_code"
kind: "code_section"
title_number: 10
title_name: "ARMED FORCES"
chapter_number: "863"
chapter_name: "NAVAL VESSELS"
section: "8675a"
citation: "10 U.S.C. § 8675a"
status: "current"
release_point: "119-100"
release_date: "2026-06-26"
source: "official"
source_url: "https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc10@119-100.zip"
source_identifier: "/us/usc/t10/s8675a"
source_file: "data/legal/raw/us/code/title-10/usc10.xml"
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text_hash: "b391f9f9bef0d6a593139af9a2426e025f88882f2eb123a33299a89956134812"
retrieved_at: "2026-07-04"
confidence: "official"
tags: ["legal", "us-code"]
---
# 10 U.S.C. § 8675a - Vessels stricken from Naval Vessel Register: contracts for dismantling on net-cost basis
## Text
(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) 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 offerors 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.
(Added Pub. L. 108375, div. A, title X, § 1011(a), Oct. 28, 2004, 118 Stat. 2038, § 7305a; renumbered § 8675a, Pub. L. 115232, div. A, title VIII, § 807(d)(2), Aug. 13, 2018, 132 Stat. 1836.)
## Notes
Editorial Notes
Amendments2018—Pub. L. 115232 renumbered section 7305a of this title as this section.
Statutory Notes and Related Subsidiaries
Effective Date of 2018 AmendmentAmendment by Pub. L. 115232 effective Feb. 1, 2019, with provision for the coordination of amendments and special rule for certain redesignations, see section 800 of Pub. L. 115232, set out as a note preceding section 3001 of this title.