Navy Contract Rule Changes: 'Short-Term Work' for Warship Repair Now Means Less Than 18 Months

The “Smart Ship Repair Act of 2025” sounds like something that might bring robot mechanics to the shipyard, but the first section is actually about a very specific, technical change to Navy contracting rules. Specifically, it updates the definition of “short-term work” used when the Navy is building or repairing combatant and escort vessels. This isn’t a bill about new spending or new ships; it’s about adjusting an administrative timer for how the Navy classifies certain jobs under Section 8669a(c)(4) of federal law.

The New Clock for Shipyard Jobs

Currently, there’s a legal cutoff for what the Navy considers a short-term job versus a long-term one in its shipbuilding contracts. This bill moves that goalpost. Under the existing rules, a job lasting up to 12 months was defined as “short-term.” The new legislation changes that definition, setting the new threshold at 18 months. This means that any work assignment related to constructing or repairing these specific Navy vessels that lasts less than 18 months will now be classified as short-term work for contracting purposes.

Why Does Six Months Matter?

For the average person, whether a contract is 12 or 18 months long seems like bureaucratic noise. But in the world of defense contracting, these definitions matter because they often trigger different rules for how the Navy assigns projects and manages its funds. By extending the definition of “short-term” from 12 months to 18 months, the Navy gains more administrative flexibility. For example, if a specific contracting procedure is only allowed for jobs classified as “short-term,” the Navy can now apply that procedure to a wider range of projects—specifically, those that fall in that new 13-to-18-month window. This is an internal procedural adjustment designed to smooth out how the Department of the Navy manages its massive, complex shipbuilding and repair schedules. It’s a technical tweak for better logistics.