[Applicability of Foreign Shipyard Construction Prohibitions to Purchase of Drydock]

A decision was requested as to whether the prohibitions against foreign shipyard construction of naval vessels apply to contracts for the purchase of: (1) an existing foreign-built floating drydock from a domestic shipyard; (2) a floating drydock currently under construction in a foreign shipyard from a domestic shipyard; and (3) an existing foreign-built floating drydock from a foreign shipyard which is represented by a U.S. agent. GAO found that, since a floating drydock is a naval vessel as defined by the federal regulations which govern naval procurement, the Navy may procure existing foreign-built drydocks from any source. However, the Navy cannot contract directly for the construction of a naval vessel in a foreign shipyard or contract with a U.S. shipyard for delivery of a vessel which has yet to be constructed when the shipyard proposes to subcontract the entire construction of the vessel to a foreign shipyard.