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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 924 Reported in Senate (RS)]

                                                       Calendar No. 171
110th CONGRESS
  1st Session
                                 S. 924

                          [Report No. 110-72]

  To strengthen the United States Coast Guard's Integrated Deepwater 
                                Program.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 20, 2007

Ms. Cantwell (for herself and Ms. Snowe) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

                              May 24, 2007

               Reported by Mr. Inouye, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
  To strengthen the United States Coast Guard's Integrated Deepwater 
                                Program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the 
``Integrated Deepwater Program Reform Act''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Procurement structure.
<DELETED>Sec. 3. Analysis of alternatives.
<DELETED>Sec. 4. Certification.
<DELETED>Sec. 5. Contract requirements.
<DELETED>Sec. 6. Improvements in Coast Guard management.
<DELETED>Sec. 7. Procurement and report requirements.
<DELETED>Sec. 8. GAO review and recommendations.
<DELETED>Sec. 9. Definitions.

<DELETED>SEC. 2. PROCUREMENT STRUCTURE.</DELETED>

<DELETED>    (a) In General.--</DELETED>
        <DELETED>    (1) Use of lead systems integrator.--Except as 
        provided in subsection (b), the United States Coast Guard may 
        not use a private sector entity as a lead systems integrator 
        for procurements under, or in support of, the Integrated 
        Deepwater Program after the date of enactment of this 
        Act.</DELETED>
        <DELETED>    (2) Full and open competition.--The United States 
        Coast Guard shall utilize full and open competition for any 
        other procurement for which an outside contractor is used 
        under, or in support of, the Integrated Deepwater Program after 
        the date of enactment of this Act.</DELETED>
<DELETED>    (b) Exceptions.--</DELETED>
        <DELETED>    (1) Completion of procurement by lead systems 
        integrator.--Notwithstanding subsection (a), the Coast Guard 
        may use a private sector entity as a lead systems integrator--
        </DELETED>
                <DELETED>    (A) to complete, without modification, any 
                delivery order or task order that was issued to the 
                lead systems integrator on or before the date of 
                enactment of this Act;</DELETED>
                <DELETED>    (B) for procurements of--</DELETED>
                        <DELETED>    (i) the HC-130J and the C41SR, 
                        and</DELETED>
                        <DELETED>    (ii) National Security Cutters or 
                        Maritime Patrol Aircraft under contract or 
                        order for construction as of the date of 
                        enactment of this Act,</DELETED>
                <DELETED>if the requirements of subsection (c) are met 
                with respect to such procurements; and</DELETED>
                <DELETED>    (C) for the procurement of additional 
                National Security Cutters or Maritime Patrol Aircraft 
                if the Commandant determines, after conducting the 
                analysis of alternatives required by section 3, that--
                </DELETED>
                        <DELETED>    (i) the justifications of FAR 6.3 
                        are met;</DELETED>
                        <DELETED>    (ii) the procurement and the use 
                        of a private sector entity as a lead systems 
                        integrator for the procurement is in the best 
                        interest of the Federal Government; 
                        and</DELETED>
                        <DELETED>    (iii) the requirements of 
                        subsection (c) are met with respect to such 
                        procurement.</DELETED>
        <DELETED>    (2) Report on decision-making process.--If the 
        Coast Guard determines under paragraph (1) that it will use a 
        private sector lead systems integrator for a procurement, the 
        Commandant shall transmit a report to the Senate Committee on 
        Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and Infrastructure 
        notifying the Committees of its determination and explaining 
        the rationale for the determination.</DELETED>
<DELETED>    (c) Limitation on Lead Systems Integrators.--Neither an 
entity performing lead systems integrator functions for a procurement 
under, or in support of, the Integrated Deepwater Program, nor a Tier 1 
subcontractor, for any procurement described in subparagraph (B) or (C) 
of subsection (b)(1) may have a financial interest below the tier 1 
subcontractor level unless--</DELETED>
        <DELETED>    (1) the entity was selected by the Coast Guard 
        through full and open competition for such 
        procurement;</DELETED>
        <DELETED>    (2) the procurement was awarded by the lead 
        systems integrator or a subcontractor through full and open 
        competition; or</DELETED>
        <DELETED>    (3) the procurement was awarded by a subcontractor 
        through a process over which the lead systems integrator or a 
        Tier 1 subcontractor exercised no control.</DELETED>

<DELETED>SEC. 3. ANALYSIS OF ALTERNATIVES.</DELETED>

<DELETED>    (a) In General.--Except with respect to a procurement 
described in subparagraph (A) or (B) of section 2(b)(1) of this Act, no 
procurement may be awarded under the Integrated Deepwater Program until 
an analysis of alternatives has been conducted under this 
section.</DELETED>
<DELETED>    (b) Independent Analysis.--Within 30 days after the date 
of enactment of this Act, the Commandant shall execute a contract for 
an analysis of alternatives with a Federally Funded Research and 
Development Center, an appropriate entity of the Department of Defense, 
or a similar independent third party entity that has appropriate 
acquisition expertise for independent analysis of all of the proposed 
procurements under, or in support of, the Integrated Deepwater Program, 
including procurements described in section 2(b)(1)(B), and for any 
future major changes of such procurements. The Commandant may not 
contract under this subsection for such an analysis with any entity 
that has a substantial financial interest in any part of the Integrated 
Deepwater Program as of the date of enactment of this Act or in any 
alternative being considered.</DELETED>
<DELETED>    (c) Analysis.--The analysis of alternatives provided 
pursuant to the contract under subsection (b) shall include--</DELETED>
        <DELETED>    (1) a discussion of capability, interoperability, 
        and other advantages and disadvantages of the proposed 
        procurements;</DELETED>
        <DELETED>    (2) an examination of feasible 
        alternatives;</DELETED>
        <DELETED>    (3) a discussion of key assumptions and variables, 
        and sensitivity to changes in such assumptions and 
        variables;</DELETED>
        <DELETED>    (4) an assessment of technology risk and maturity; 
        and</DELETED>
        <DELETED>    (5) a calculation of costs, including life-cycle 
        costs.</DELETED>
<DELETED>    (d) Report to Congress.--As soon as possible after an 
analysis of alternatives has been completed, the Commandant shall 
develop a plan for the procurements addressed in the analysis and shall 
transmit a report describing the plan to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure.</DELETED>

<DELETED>SEC. 4. CERTIFICATION.</DELETED>

<DELETED>    (a) In General.--A contract, delivery order, or task order 
for procurement under, or in support of, the Coast Guard's Integrated 
Deepwater Program may not be executed by the Coast Guard until the 
Commandant certifies that--</DELETED>
        <DELETED>    (1) appropriate market research has been conducted 
        prior to technology development to reduce duplication of 
        existing technology and products;</DELETED>
        <DELETED>    (2) the technology has been demonstrated in a 
        relevant environment;</DELETED>
        <DELETED>    (3) the technology demonstrates a high likelihood 
        of accomplishing its intended mission;</DELETED>
        <DELETED>    (4) the technology is affordable when considering 
        the per unit cost and the total procurement cost in the context 
        of the total resources available during the period covered by 
        the Integrated Deepwater Program;</DELETED>
        <DELETED>    (5) the technology is affordable when considering 
        the ability of the Coast Guard to accomplish its missions using 
        alternatives, based on demonstrated technology, design, and 
        knowledge;</DELETED>
        <DELETED>    (6) reasonable cost and schedule estimates have 
        been developed to execute the product development and 
        production plan for the technology;</DELETED>
        <DELETED>    (7) funding is available to execute the product 
        development and production plan for the technology; 
        and</DELETED>
        <DELETED>    (8) the technology complies with all relevant 
        policies, regulations, and directives of the Coast 
        Guard.</DELETED>
<DELETED>    (b) Report to Congress.--The Commandant shall transmit a 
copy of each certification required under subsection (a) to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure within 
30 days after the completion of the certification.</DELETED>

<DELETED>SEC. 5. CONTRACT REQUIREMENTS.</DELETED>

<DELETED>    The Commandant shall ensure that any contract, delivery 
order, or task order for procurement under, or in support of, the 
Integrated Deepwater Program executed by the Coast Guard--</DELETED>
        <DELETED>    (1) incorporates provisions that address the 
        recommendations related to award fee determination and award 
        term evaluation made by the Government Accountability Office in 
        its March, 2004, report entitled Coast Guard's Deepwater 
        Program Needs Increased Attention to Management and Contractor 
        Oversight, GAO-04-380, and any subsequent Government 
        Accountability Office recommendations relevant to the contract 
        terms issued before the date of enactment of this Act, 
        including that any award or incentive fee is tied to program 
        outcomes;</DELETED>
        <DELETED>    (2) provides that certification of any Integrated 
        Deepwater Program procurement for performance, safety, and any 
        other relevant factor will be conducted by an independent third 
        party;</DELETED>
        <DELETED>    (3) does not include--</DELETED>
                <DELETED>    (A) for any contract extending the 
                existing Integrated Deepwater Program contract term, 
                minimum requirements for the purchase of a given or 
                determinable number of specific assets;</DELETED>
                <DELETED>    (B) provisions that commit the Coast Guard 
                without express written approval by the Coast 
                Guard;</DELETED>
                <DELETED>    (C) any provision allowing for equitable 
                adjustment that differs from the Federal Acquisition 
                Regulations; and</DELETED>
        <DELETED>    (4) for any contract extending the existing 
        Integrated Deepwater Program contract term, is reviewed by, and 
        addresses recommendations made by, the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics through the 
        Defense Acquisition University.</DELETED>

<DELETED>SEC. 6. IMPROVEMENTS IN COAST GUARD MANAGEMENT.</DELETED>

<DELETED>    (a) In General.--As soon as practicable after the date of 
enactment of this Act, the Commandant shall take action to ensure 
that--</DELETED>
        <DELETED>    (1) the measures contained in the Coast Guard's 
        report entitled Coast Guard: Blue Print for Acquisition Reform 
        are implemented fully;</DELETED>
        <DELETED>    (2) any additional measures for improved 
        management recommended by the Defense Acquisition University in 
        its Quick Look Study of the United States Coast Guard Deepwater 
        Program, dated February 5, 2007, are implemented;</DELETED>
        <DELETED>    (3) integrated product teams, and all higher-level 
        teams that oversee integrated product teams, are chaired by 
        Coast Guard personnel; and</DELETED>
        <DELETED>    (4) the Assistant Commandant for Engineering and 
        Logistics is designated as the Technical Authority for all 
        design, engineering, and technical decisions for the Integrated 
        Deepwater Program.</DELETED>
<DELETED>    (b) Transfer.--</DELETED>
        <DELETED>    (1) In general.--Section 93(a) of title 14, United 
        States Code, is amended--</DELETED>
                <DELETED>    (A) by striking ``and'' after the 
                semicolon in paragraph (23);</DELETED>
                <DELETED>    (B) by striking ``appropriate.'' in 
                paragraph (24) and inserting ``appropriate; and''; 
                and</DELETED>
                <DELETED>    (C) by adding at the end thereof the 
                following:</DELETED>
        <DELETED>    ``(25) notwithstanding any other provision of law, 
        in any fiscal year transfer funds made available for personnel, 
        compensation, and benefits from the appropriation account 
        `Acquisition, Construction, and Improvement' to the 
        appropriation account `Operating Expenses' for personnel 
        compensation and benefits and related costs necessary to 
        execute new or existing procurements of the Coast 
        Guard.''.</DELETED>
        <DELETED>    (2) Notification.--Within 30 days after making a 
        transfer under section 93(a)(25) of title 14, United States 
        Code, the Commandant shall notify the Senate Committee on 
        Commerce, Science, Transportation and Infrastructure, the 
        Senate Committee on Appropriations, the House Committee on 
        Transportation and Infrastructure, and the House Committee on 
        Appropriations.</DELETED>

<DELETED>SEC. 7. PROCUREMENT AND REPORT REQUIREMENTS.</DELETED>

<DELETED>    (a) Selected Acquisition Reports.--The Commandant shall 
submit to the Senate Committee on Commerce, Science, and Transportation 
and the House of Representatives Committee on Transportation and 
Infrastructure reports on the Integrated Deepwater Program that contain 
the same type of information with respect to that Program, to the 
greatest extent practicable, as the Secretary of Defense is required to 
provide to the Congress under section 2432 of title 10, United States 
Code, with respect to major defense procurement programs.</DELETED>
<DELETED>    (b) Unit Cost Reports.--Each Coast Guard program manager 
under the Coast Guard's Integrated Deepwater Program shall provide to 
the Commandant, or the Commandant's designee, reports on the unit cost 
of assets acquired or modified that are under the management or control 
of the Coast Guard program manager on the same basis and containing the 
same information, to the greatest extent practicable, as is required to 
be included in the reports a program manager is required to provide to 
the service procurement executive designated by the Secretary of 
Defense under section 2433 of title 10, United States Code, with 
respect to a major defense procurement program.</DELETED>
<DELETED>    (c) Reporting on Cost Overruns and Delays.--Within 30 days 
after the Commandant becomes aware of a likely cost overrun or 
scheduled delay, the Commandant shall transmit a report to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure that 
includes--</DELETED>
        <DELETED>    (1) a description of the known or anticipated cost 
        overrun;</DELETED>
        <DELETED>    (2) a detailed explanation for such 
        overruns;</DELETED>
        <DELETED>    (3) a detailed description of the Coast Guard's 
        plans for responding to such overrun and preventing additional 
        overruns; and</DELETED>
        <DELETED>    (4) a description of any significant delays in 
        procurement schedules.</DELETED>

<DELETED>SEC. 8. GAO REVIEW AND RECOMMENDATIONS.</DELETED>

<DELETED>    (a) Award Fee and Award Term Criteria.--The Coast Guard 
may not execute a new contract, delivery order, or task order, nor 
agree to extend the term of an existing contract, with a prime 
contractor for procurement under, or in support of, the Integrated 
Deepwater Program until the Commandant has consulted with the 
Comptroller General to ensure that the Government Accountability 
Office's recommendations, in its March, 2004, report entitled Coast 
Guard's Deepwater Program Needs Increased Attention to Management and 
Contractor Oversight, GAO-04-380, and any subsequent Government 
Accountability Office recommendations issued before the date of 
enactment of this Act, with respect to award fee and award term 
criteria have been fully addressed.</DELETED>
<DELETED>    (b) Other Recommendations.--The Commandant shall ensure 
that all other recommendations in that report, and any subsequent 
recommendations issued before the date of enactment of this Act, are 
implemented to the maximum extent practicable by the Coast Guard within 
1 year after the date of enactment of this Act. The Commandant shall 
report to the Senate Committee on Commerce, Science, and Transportation 
and the House of Representatives Committee on Transportation and 
Infrastructure on the Coast Guard's progress in implementing such 
recommendations.</DELETED>
<DELETED>    (c) GAO Reports on Implementation.--Beginning 6 months 
after the date of enactment of this Act, the Comptroller General shall 
submit an annual report to the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Committee on 
Transportation and Infrastructure on the Coast Guard's progress in 
implementing the Government Accountability Office's recommendations, in 
its March, 2004, report entitled Coast Guard's Deepwater Program Needs 
Increased Attention to Management and Contractor Oversight, GAO-04-380, 
and any subsequent Government Accountability Office recommendations 
issued before the date of enactment of this Act, in carrying out this 
Act.</DELETED>

<DELETED>SEC. 9. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Commandant.--The term ``Commandant'' means the 
        Commandant of the United States Coast Guard.</DELETED>
        <DELETED>    (2) Integrated deepwater program.--The term 
        ``Integrated Deepwater Program'' means the Integrated Deepwater 
        Systems Program described by the Coast Guard in its Report to 
        Congress on Revised Deepwater Implementation Plan, dated March 
        25, 2005, including any subsequent modifications, revisions, or 
        restatements of the Program.</DELETED>
        <DELETED>    (3) Procurement.--The term ``procurement'' 
        includes development, production, sustainment, modification, 
        conversion, and missionization.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Integrated 
Deepwater Program Reform Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Procurement structure.
Sec. 3. Analysis of alternatives.
Sec. 4. Certification.
Sec. 5. Contract requirements.
Sec. 6. Improvements in Coast Guard management.
Sec. 7. Procurement and report requirements.
Sec. 8. GAO review and recommendations.
Sec. 9. Inspector General review of Deepwater program.
Sec. 10. Definitions.

SEC. 2. PROCUREMENT STRUCTURE.

    (a) In General.--
            (1) Use of lead systems integrator.--Except as provided in 
        subsection (b), the United States Coast Guard may not use a 
        private sector entity as a lead systems integrator for 
        procurements under, or in support of, the Integrated Deepwater 
        Program after the date of enactment of this Act.
            (2) Full and open competition.--The United States Coast 
        Guard shall utilize full and open competition for any other 
        procurement for which an outside contractor is used under, or 
        in support of, the Integrated Deepwater Program after the date 
        of enactment of this Act.
    (b) Exceptions.--
            (1) Completion of procurement by lead systems integrator.--
        Notwithstanding subsection (a), the Coast Guard may use a 
        private sector entity as a lead systems integrator--
                    (A) to complete any delivery order or task order 
                that was issued to the lead systems integrator on or 
                before the date of enactment of this Act without any 
                change in the quantity of assets or the specific type 
                of assets covered by the order;
                    (B) for procurements of--
                            (i) the HC-130J and the C41SR, and
                            (ii) National Security Cutters or Maritime 
                        Patrol Aircraft under contract or order for 
                        construction as of the date of enactment of 
                        this Act,
                if the requirements of subsection (c) are met with 
                respect to such procurements; and
                    (C) for the procurement of additional National 
                Security Cutters or Maritime Patrol Aircraft if the 
                Commandant determines, after conducting the analysis of 
                alternatives required by section 3, that--
                            (i) the justifications of FAR 6.3 are met;
                            (ii) the procurement and the use of a 
                        private sector entity as a lead systems 
                        integrator for the procurement is in the best 
                        interest of the Federal government; and
                            (iii) the requirements of subsection (c) 
                        are met with respect to such procurement.
            (2) Awards to tier 1 subcontractors.--The Coast Guard may 
        award to any Tier 1 subcontractor or subcontractor below the 
        Tier 1 level any procurement that it could award to a lead 
        systems integrator under paragraph (1).
            (3) Report on decision-making process.--If the Coast Guard 
        determines under paragraph (1) that it will use a private 
        sector lead systems integrator for a procurement, the 
        Commandant shall transmit a report to the Senate Committee on 
        Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and Infrastructure 
        notifying the Committees of its determination and explaining 
        the rationale for the determination.
    (c) Limitation on Lead Systems Integrators.--Neither an entity 
performing lead systems integrator functions for a procurement under, 
or in support of, the Integrated Deepwater Program, nor a Tier 1 
subcontractor, for any procurement described in subparagraph (B) or (C) 
of subsection (b)(1) may have a financial interest in a subcontractor 
below the tier 1 subcontractor level unless--
            (1) the entity was selected by the Coast Guard through full 
        and open competition for such procurement;
            (2) the procurement was awarded by the lead systems 
        integrator or a subcontractor through full and open 
        competition;
            (3) the procurement was awarded by a subcontractor through 
        a process over which the lead systems integrator or a Tier 1 
        subcontractor exercised no control; or
            (4) the Commandant has determined that the justifications 
        of FAR 6.3 are met.

SEC. 3. ANALYSIS OF ALTERNATIVES.

    (a) In General.--Except with respect to a procurement described in 
subparagraph (A) or (B) of section 2(b)(1) of this Act, or a 
procurement for which a request for proposals consistent with the FAR 
has been issued before the date of enactment of this Act, no 
procurement may be awarded under the Integrated Deepwater Program until 
an analysis of alternatives has been conducted under this section.
    (b) Independent Analysis.--As soon as possible, but no later than 
120 days after the date of enactment of this Act, the Commandant shall 
execute a contract for an analysis of alternatives with a Federally 
Funded Research and Development Center, an appropriate entity of the 
Department of Defense, or a similar independent third party entity that 
has appropriate acquisition expertise for independent analysis of all 
of the proposed procurements under, or in support of, the Integrated 
Deepwater Program, including procurements described in section 
2(b)(1)(B), and for any future major changes of such procurements. The 
Commandant may not contract under this subsection for such an analysis 
with any entity that has a substantial financial interest in any part 
of the Integrated Deepwater Program as of the date of enactment of this 
Act or in any alternative being considered.
    (c) Analysis.--The analysis of alternatives provided pursuant to 
the contract under subsection (b) for procurements and feasible 
alternatives shall include--
            (1) an examination of capability, interoperability, and 
        other advantages and disadvantages;
            (2) an evaluation of whether different quantities of 
        specific assets could meet the Coast Guard's overall 
        performance needs;
            (3) a discussion of key assumptions and variables, and 
        sensitivity to changes in such assumptions and variables;
            (4) an assessment of technology risk and maturity;
            (5) an evaluation of safety and performance records; and
            (6) a calculation of costs, including life-cycle costs.
    (d) Report to Congress.--As soon as possible after an analysis of 
alternatives has been completed, the Commandant shall develop a plan 
for the procurements addressed in the analysis, as well as procurements 
described in subsection (a) for which no analysis of alternatives is 
required, and shall transmit a report describing the plan, and the 
schedule and costs for delivery of such procurements to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure.

SEC. 4. CERTIFICATION.

    (a) In General.--After the date of enactment of this Act, a 
contract, delivery order, or task order exceeding $10,000,000 for 
procurement under, or in support of, the Coast Guard's Integrated 
Deepwater Program may not be executed by the Coast Guard until the 
Commandant certifies that--
            (1) appropriate market research has been conducted prior to 
        technology development to reduce duplication of existing 
        technology and products;
            (2) the technology has been demonstrated to the maximum 
        extent practicable in a relevant environment;
            (3) the technology demonstrates a high likelihood of 
        accomplishing its intended mission;
            (4) the technology is affordable when considering the per 
        unit cost and the total procurement cost in the context of the 
        total resources available during the period covered by the 
        Integrated Deepwater Program;
            (5) the technology is affordable when considering the 
        ability of the Coast Guard to accomplish its missions using 
        alternatives, based on demonstrated technology, design, and 
        knowledge;
            (6) funding is available to execute the contract, delivery 
        order, or task order; and
            (7) the technology complies with all relevant policies, 
        regulations, and directives of the Coast Guard.
    (b) Limitation.--Nothing in this section shall prevent the Coast 
Guard from executing contracts or issuing deliver orders or task 
orders, for research and development or technology demonstrations 
under, or in support of, the Integrated Deepwater Program.
    (c) Report to Congress.--The Commandant shall transmit a copy of 
each certification required under subsection (a) to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure within 
30 days after the completion of the certification.

SEC. 5. CONTRACT REQUIREMENTS.

    The Commandant shall ensure that any contract, delivery order, or 
task order for procurement under, or in support of, the Integrated 
Deepwater Program executed by the Coast Guard--
            (1) addresses the recommendations related to award fee 
        determination and award term evaluation made by the Government 
        Accountability Office in its March, 2004, report entitled Coast 
        Guard's Deepwater Program Needs Increased Attention to 
        Management and Contractor Oversight, GAO-04-380, and any 
        subsequent Government Accountability Office recommendations 
        relevant to the contract terms issued before March 1, 2007, 
        including the recommendation that any award or incentive fee be 
        tied to program outcomes;
            (2) provides that certification of any Integrated Deepwater 
        Program procurement for performance, safety, and other relevant 
        factors determined by the Commandant will be conducted by an 
        independent third party;
            (3) does not include--
                    (A) for any contract extending the existing 
                Integrated Deepwater Program contract term that expires 
                in June, 2007, minimum requirements for the purchase of 
                a given or determinable number of specific assets;
                    (B) provisions that commit the Coast Guard without 
                express written approval by the Coast Guard;
                    (C) any provision allowing for equitable adjustment 
                that differs from the Federal Acquisition Regulations;
            (4) for any contract extending the existing Integrated 
        Deepwater Program contract term that expires in June, 2007, is 
        reviewed by, and addresses recommendations made by, the Under 
        Secretary of Defense for Acquisition, Technology, and Logistics 
        through the Defense Acquisition University in its Quick Look 
        Study dated February 5, 2007; and
            (5) meets the requirements of the Systems Acquisition 
        Manual.

SEC. 6. IMPROVEMENTS IN COAST GUARD MANAGEMENT.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Commandant shall take action to ensure that--
            (1) the measures contained in the Coast Guard's report 
        entitled Coast Guard: Blue Print for Acquisition Reform are 
        implemented fully;
            (2) any additional measures for improved management 
        recommended by the Defense Acquisition University in its Quick 
        Look Study of the United States Coast Guard Deepwater Program, 
        dated February 5, 2007, are implemented;
            (3) integrated product teams, and all higher-level teams 
        that oversee integrated product teams, are chaired by Coast 
        Guard personnel; and
            (4) the Assistant Commandant for Engineering and Logistics 
        is designated as the Technical Authority for all design, 
        engineering, and technical decisions for the Integrated 
        Deepwater Program.
    (b) Transfer.--
            (1) In general.--Section 93(a) of title 14, United States 
        Code, is amended--
                    (A) by striking ``and'' after the semicolon in 
                paragraph (23);
                    (B) by striking ``appropriate.'' in paragraph (24) 
                and inserting ``appropriate; and''; and
                    (C) by adding at the end thereof the following:
            ``(25) notwithstanding any other provision of law, in any 
        fiscal year transfer funds made available for personnel, 
        compensation, and benefits from the appropriation account 
        `Acquisition, Construction, and Improvement' to the 
        appropriation account `Operating Expenses' for personnel 
        compensation and benefits and related costs necessary to 
        execute new or existing procurements of the Coast Guard.''.
            (2) Notification.--Within 30 days after making a transfer 
        under section 93(a)(25) of title 14, United States Code, the 
        Commandant shall notify the Senate Committee on Commerce, 
        Science, Transportation and Infrastructure, the Senate 
        Committee on Appropriations, the House Committee on 
        Transportation and Infrastructure, and the House Committee on 
        Appropriations.

SEC. 7. PROCUREMENT AND REPORT REQUIREMENTS.

    (a) Selected Acquisition Reports.--The Commandant shall submit to 
the Senate Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Transportation and Infrastructure 
reports on the Integrated Deepwater Program that contain the same type 
of information with respect to that Program, to the greatest extent 
practicable, as the Secretary of Defense is required to provide to the 
Congress under section 2432 of title 10, United States Code, with 
respect to major defense procurement programs.
    (b) Unit Cost Reports.--Each Coast Guard program manager under the 
Coast Guard's Integrated Deepwater Program shall provide to the 
Commandant, or the Commandant's designee, reports on the unit cost of 
assets acquired or modified that are under the management or control of 
the Coast Guard program manager on the same basis and containing the 
same information, to the greatest extent practicable, as is required to 
be included in the reports a program manager is required to provide to 
the service procurement executive designated by the Secretary of 
Defense under section 2433 of title 10, United States Code, with 
respect to a major defense procurement program.
    (c) Reporting on Cost Overruns and Delays.--Within 30 days after 
the Commandant becomes aware of a likely cost overrun or scheduled 
delay, the Commandant shall transmit a report to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure that 
includes--
            (1) a description of the known or anticipated cost overrun;
            (2) a detailed explanation for such overruns;
            (3) a detailed description of the Coast Guard's plans for 
        responding to such overrun and preventing additional overruns; 
        and
            (4) a description of any significant delays in procurement 
        schedules.
    (d) Patrol Boat Report.--Not later than 90 days after the date of 
enactment of this Act the Commandant shall submit to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee 
on Transportation and Infrastructure of the House of Representatives a 
report on how the Coast Guard plans to manage the annual readiness gap 
of lost time for 110-foot patrol boats from fiscal year 2008 through 
fiscal year 2014. The report shall include--
            (1) a summary of the patrol hours that will be lost due to 
        delays in replacing the 110-foot cutters and reduced 
        capabilities of the 110-foot cutters that have been converted;
            (2) an identification of assets that may be used to 
        alleviate the annual readiness gap of lost time for such patrol 
        boats;
            (3) a projection of the remaining operational lifespan of 
        the 110-foot patrol boat fleet;
            (4) a description of how extending through fiscal year 2014 
        the transfer agreement between the Coast Guard and the United 
        States Navy for 5 Cyclone class 179-foot patrol coastal ships 
        would effect the annual readiness gap of lost time for 110-foot 
        patrol boats; and
            (5) an estimate of the cost to extend the operational 
        lifespan of the 110-foot patrol boat fleet for each of fiscal 
        years 2008 through 2014.

SEC. 8. GAO REVIEW AND RECOMMENDATIONS.

    (a) Award Fee and Award Term Criteria.--The Coast Guard shall 
consult with the Comptroller General no later than June 1, 2007 to 
ensure that the Government Accountability Office's recommendations, in 
its March, 2004, report entitled Coast Guard's Deepwater Program Needs 
Increased Attention to Management and Contractor Oversight, GAO-04-380, 
and any subsequent Government Accountability Office recommendations 
issued before March 1, 2007, with respect to award fee and award term 
criteria will be addressed to the maximum extent practicable in any 
contract, delivery order, or task order or extension of the existing 
contract for procurement under or in support of the Integrated 
Deepwater Program entered into after the date of enactment of this Act.
    (b) Other Recommendations.--The Commandant shall ensure that all 
other recommendations in that report, and any subsequent 
recommendations issued before March 1, 2007, are implemented to the 
maximum extent practicable by the Coast Guard within 1 year after the 
date of enactment of this Act. The Commandant shall report to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Transportation and Infrastructure on 
the Coast Guard's progress in implementing such recommendations.
    (c) GAO Reports on Implementation.--Beginning 6 months after the 
date of enactment of this Act, the Comptroller General shall submit an 
annual report to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure on the Coast Guard's progress in 
implementing the provisions of this Act, the Government Accountability 
Office's recommendations, in its March, 2004, report entitled Coast 
Guard's Deepwater Program Needs Increased Attention to Management and 
Contractor Oversight, GAO-04-380, and any subsequent Government 
Accountability Office recommendations issued before March 1, 2007.

SEC. 9. INSPECTOR GENERAL REVIEW OF DEEPWATER PROGRAM.

    Not later than 240 days after the date of the enactment of this 
Act, the Inspector General of the Department of Homeland Security shall 
submit to the Secretary, and to Congress, a report on the acquisition 
of assets under the Deepwater program. The report shall include--
            (1) a description of each decision, if any, of the Coast 
        Guard or Integrated Coast Guard Systems relating to the 
        acquisition of assets under the Deepwater program that directly 
        or indirectly resulted in cost overruns or program cost 
        increases to the United States;
            (2) an assessment whether any decision covered by paragraph 
        (1) violated the terms of the contract of Integrated Coast 
        Guard Systems for the Deepwater program;
            (3) an assessment of how much program costs under the 
        Deepwater program have increased as a result of any such 
        decision; and
            (4) an assessment of whether the Coast Guard or Integrated 
        Coast Guard Systems is responsible for the payment of any cost 
        overruns associated with any such decision.

SEC. 10. DEFINITIONS.

    In this Act:
            (1) Commandant.--The term ``Commandant'' means the 
        Commandant of the United States Coast Guard.
            (2) Integrated deepwater program.--The term ``Integrated 
        Deepwater Program'' means the Integrated Deepwater Systems 
        Program described by the Coast Guard in its Report to Congress 
        on Revised Deepwater Implementation Plan, dated March 25, 2005, 
        including any subsequent modifications, revisions, or 
        restatements of the Program.
            (3) Procurement.--The term ``procurement'' includes 
        development, production, sustainment, modification, conversion, 
        and missionization.
                                                       Calendar No. 171

110th CONGRESS

  1st Session

                                 S. 924

                          [Report No. 110-72]

_______________________________________________________________________

                                 A BILL

  To strengthen the United States Coast Guard's Integrated Deepwater 
                                Program.

_______________________________________________________________________

                              May 24, 2007

                       Reported with an amendment
```