(a) Master agreement for repair and alteration of vessels—

1. (1) Is a written instrument of understanding, negotiated between a contracting activity and a contractor that—

   1. (A) Contains contract clauses, terms, and conditions applying to future contracts for repairs, alterations, and/or additions to vessels; and
   2. (B) Contemplates separate future contracts that will incorporate by reference or attachment the required and applicable clauses agreed upon in the master agreement.
2. (2) Is not a contract.

(b) Job order—

1. (1) Is a fixed price contract incorporating, by reference or attachment, a master agreement for repair and alteration of vessels;
2. (2) May include clauses pertaining to subjects not covered by the master agreement; but applicable to the job order being awarded; and
3. (3) Applies to a specific acquisition and sets forth the scope of work, price, delivery date, and other appropriate terms that apply to the particular job order.