---
kind: "section"
citation: "33 U.S.C. § 891d"
title: "33"
title_heading: "Navigation and Navigable Waters"
number: "891d"
heading: "Contract authority"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/33/891d"
units:
  - "Chapter 17 — National Oceanic and Atmospheric Administration"
  - "Subchapter III — Noaa Fleet Modernization"
---

# §891d. Contract authority

- (a) **Multiyear contracts—**
  - (1) **In general—** Subject to paragraphs [(2)](#a-2) and [(3)](#a-3), and notwithstanding [section 1341 of title 31](/usc/31/1341.md) and subsections (a) and (b) of [section 6301 of title 41](/usc/41/6301.md), the [Secretary](/usc/33/891.md?p=4) may acquire vessels for the [NOAA fleet](/usc/33/891.md?p=2) by purchase, lease, lease-purchase, or otherwise, under one or more multiyear contracts.
  - (2) **Required findings—** The [Secretary](/usc/33/891.md?p=4) may not enter into a contract pursuant to this subsection unless the [Secretary](/usc/33/891.md?p=4) finds with respect to that contract that—
    - (A) there is a reasonable expectation that throughout the contemplated contract period the [Secretary](/usc/33/891.md?p=4) will request from Congress funding for the contract at the level required to avoid contract termination; and
    - (B) the use of the contract will promote the best interests of the United States by encouraging competition and promoting economic efficiency in the operation of the [NOAA fleet](/usc/33/891.md?p=2).
  - (3) **Required contract provisions—** The [Secretary](/usc/33/891.md?p=4) may not enter into a contract pursuant to this subsection unless the contract includes—
    - (A) a provision under which the obligation of the United States to make payments under the contract for any fiscal year is subject to the availability of appropriations provided in advance for those payments;
    - (B) a provision that specifies the term of effectiveness of the contract; and
    - (C) appropriate provisions under which, in case of any termination of the contract before the end of the term specified pursuant to [subparagraph (B)](#a-3-B), the United States shall only be liable for the lesser of—
      - (i) an amount specified in the contract for such a termination; or
      - (ii) amounts that—
        - (I) were appropriated before the date of the termination for the performance of the contract or for procurement of the type of acquisition covered by the contract; and
        - (II) are unobligated on the date of the termination.
- (b) **Service contracts—** Notwithstanding any other provision of law, the [Secretary](/usc/33/891.md?p=4) may enter into multiyear contracts for oceanographic research, fisheries research, and mapping and charting services to assist the [Secretary](/usc/33/891.md?p=4) in fulfilling [NOAA](/usc/33/891.md?p=1) missions. The [Secretary](/usc/33/891.md?p=4) may only enter into these contracts if—
  - (1) the [Secretary](/usc/33/891.md?p=4) finds that it is in the public interest to do so;
  - (2) the contract is for not more than 7 years; and
  - (3)
    - (A) the cost of the contract is less than the cost (including the cost of operation, maintenance, and personnel) to the [NOAA](/usc/33/891.md?p=1) of obtaining those services on [NOAA](/usc/33/891.md?p=1) vessels; or
    - (B) [NOAA](/usc/33/891.md?p=1) vessels are not available or cannot provide those services.
- (c) **Bonding authority—** Notwithstanding any other law, the [Secretary](/usc/33/891.md?p=4) may not require a contractor for the construction, alteration, repair or maintenance of a [NOAA](/usc/33/891.md?p=1) vessel to provide a bid bond, payment bond, performance bond, completion bond, or other surety instrument in an amount greater than 20 percent of the value of the base contract quantity (excluding options) unless the [Secretary](/usc/33/891.md?p=4) determines that requiring an instrument in that amount will not prevent a responsible bidder or offeror from competing for the award of the contract.

## Source credit

(Pub. L. 102–567, title VI, § 606, Oct. 29, 1992, 106 Stat. 4301.)

## Notes

### Editorial Notes

### Codification

In subsec. (a)(1), “subsections (a) and (b) of section 6301 of title 41” substituted for “section 3732 of the Revised Statutes of the United States (41 U.S.C. 11)” on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts.