(a) In General.—The Secretary of the Navy shall establish and appoint an individual to the position of Deputy Commander of the Naval Sea Systems Command for the Supervision of Shipbuilding, Conversion, and Repair (in this section referred to as the “Deputy Commander”).

(b) Qualifications.—The Deputy Commander shall be a flag officer of the Navy or an employee of the Navy in a Senior Executive Service position who possesses the expertise required to carry out the responsibilities specified in this section.

(c) Reporting.—The Deputy Commander shall report directly to the Commander of the Naval Sea Systems Command.

(d) General Responsibilities.—The Deputy Commander shall oversee—

(1) the independent administration and management of the execution of Department of Defense contracts awarded to commercial entities for shipbuilding, conversion, and repair at the facilities of such entities;

(2) the designated contract administration office of the Department responsible for performing contract administration services for such contracts;

(3) enforcement of requirements of such contracts to ensure satisfaction of all contractual obligations;

(4) the work performed on such contracts to facilitate greater quality and economy in the products and services being procured; and

(5) on-site quality assurance by the Government for such contracts, including inspections.

(e) Non-Contract Administration Services Functions.—The Deputy Commander shall manage the complexities and unique demands of shipbuilding, conversion, and repair by overseeing the performance of the following non-contract administration services functions for Navy Program Executives Offices, fleet commanders, and the Naval Sea Systems Command headquarters:

(1) Project oversight, including the following:

(A) Coordinating responses to non-contractual emergent problems, as assigned by the Commander of Naval Sea Systems Command.

(B) Jointly coordinating activities of precommissioning crews and ship’s force, and other Government activities.

(C) Communicating with customers and higher authority regarding matters that may affect project execution.

(D) Contract planning and procurement, including participation in acquisition planning and pre-award activities, including assessment of contractor qualifications.

(2) Technical authority, including the following:

(A) Execution of the technical authority responsibilities by the Waterfront Chief Engineer.

(B) Execution of the waterfront technical authority responsibilities of the Naval Sea Systems Command for providing Government direction and coordination in the resolution of technical issues.

(f) Comprehensive Contract Management.—The Deputy Commander shall maintain direct relationships with the Director of the Defense Contract Management Agency and the Director of the Defense Contract Audit Agency to facilitate comprehensive contract management and oversight of commercial entities awarded a contract described in subsection (d)(1) and subcontractors (at any tier).

(g) Subcontractor Audits.—The Deputy Commander shall request that the Director of the Defense Contract Audit Agency perform periodic audits of subcontractors that perform cost-type subcontracts or incentive subcontracts—

(1) that are valued at $50,000,000 or more; and

(2) for which the Deputy Commander oversees the designated contract administration office of the Department pursuant to subsection (d)(2).

(h) Annual Written Assessment.—(1) Not later than March 1 of each year, the Deputy Commander shall submit to the congressional defense committees a written assessment summarizing the activities and results associated with the contracts for which the Deputy Commander oversees the designated contract administration office of the Department.

(2) Each written assessment required by paragraph (1) shall include the following:

(A) A summary of shipbuilding performance that—

(i) includes common critical process metrics documented by the appropriate Navy supervisor of shipbuilding, conversion, and repair for each commercial entity described in subsection (d)(1);

(ii) outlines corrective action requests for critical defects and any actions planned or taken to address them;

(iii) indicates waivers approved to support acceptance trials, combined trials, and Navy acceptance of ship delivery from the commercial entity described in subsection (d)(1), to include the conditions requiring the approval of each waiver; and

(iv) includes information on the extent to which letters of delegation are used for each shipbuilding program to provide for quality assurance oversight of subcontractors (at any tier) by the Defense Contract Management Agency.

(B) A summary of any significant deficiencies in contractor business systems or other significant contract discrepancies documented by the appropriate Navy supervisor of shipbuilding, conversion, and repair, the Defense Contract Management Agency, or the Defense Contract Audit Agency for such contracts, and any actions planned or taken in response.

(C) A summary of the results from audits and inspections completed by Naval Sea Systems Command that evaluate the performance of the appropriate Navy supervisor of shipbuilding, conversion, and repair in executing their quality assurance and contract administration responsibilities.

(D) A summary of any dedicated evaluation, such as a review by a task force or working group, of the organizational structure and resourcing plans and requirements that support the supervision of shipbuilding, conversion, and repair, that—

(i) includes key findings, recommendations, and implementation plans; and

(ii) indicates any additional support needed from other organizations of the Department, such as the Defense Contract Audit Agency and the Defense Contract Management Agency, for implementation.