
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC7305]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle C--Navy and Marine Corps
 
                     PART IV--GENERAL ADMINISTRATION
 
                       CHAPTER 633--NAVAL VESSELS
 
Sec. 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.
    (2) In such a case, the Secretary may--
        (A) sell the vessel to the highest acceptable bidder, regardless 
    of the appraised value of the vessel, after publicly advertising the 
    sale of the vessel for a period of not less than 30 days; or
        (B) subject to paragraph (3), sell the vessel by competitive 
    negotiation to the acceptable offeror who submits the offer that is 
    most advantageous to the United States (taking into account price 
    and such other factors as the Secretary determines appropriate).

    (3) Before entering into negotiations to sell a vessel under 
paragraph (2)(B), the Secretary shall publish notice of the intention to 
do so in the Commerce Business Daily sufficiently in advance of 
initiating the negotiations that all interested parties are given a 
reasonable opportunity to prepare and submit proposals. The Secretary 
shall afford an opportunity to participate in the negotiations to all 
acceptable offerors submitting proposals that the Secretary considers as 
having the potential to be the most advantageous to the United States 
(taking into account price and such other factors as the Secretary 
determines appropriate).
    (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, Sec. 824(b), Nov. 30, 1993, 
107 Stat. 1708; amended Pub. L. 105-85, div. A, title X, Sec. 1021, Nov. 
18, 1997, 111 Stat. 1875.)

                       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 (Sec. 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, Sec. 513(27), 94 Stat. 2933, 
related to sale of vessels stricken from Naval Vessel Register, prior to 
repeal by Pub. L. 103-160, Sec. 824(b).


                               Amendments

    1997--Subsec. (c). Pub. L. 105-85 amended subsec. (c) generally. 
Prior to amendment, subsec. (c) read as follows:
    ``(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.''

                        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.
