II 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Integrated Deepwater Program Reform Act’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 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. Definitions. 

3 SEC. 2. PROCUREMENT STRUCTURE. 

4 (a) IN GENERAL.— 

5 (1) USE OF LEAD SYSTEMS INTEGRATOR.—Ex6 cept as provided in subsection (b), the United States 

7 Coast Guard may not use a private sector entity as 

8 a lead systems integrator for procurements under, or 

9 in support of, the Integrated Deepwater Program 

10 after the date of enactment of this Act. 

11 (2) FULL AND OPEN COMPETITION.—The 

12 United States Coast Guard shall utilize full and 

13 open competition for any other procurement for 

14 which an outside contractor is used under, or in sup15 port of, the Integrated Deepwater Program after the 

16 date of enactment of this Act. 

17 (b) EXCEPTIONS.— 

18 (1) COMPLETION OF PROCUREMENT BY LEAD

19 SYSTEMS INTEGRATOR.—Notwithstanding subsection 

20 (a), the Coast Guard may use a private sector entity 

21 as a lead systems integrator— 


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1 (A) to complete, without modification, any 

2 delivery order or task order that was issued to 

3 the lead systems integrator on or before the 

4 date of enactment of this Act; 

5 (B) for procurements of— 

6 (i) the HC–130J and the C41SR, and 

7 (ii) National Security Cutters or Mar8 itime Patrol Aircraft under contract or 

9 order for construction as of the date of en10 actment of this Act, 

11 if the requirements of subsection (c) are met 

12 with respect to such procurements; and 

13 (C) for the procurement of additional Na14 tional Security Cutters or Maritime Patrol Air15 craft if the Commandant determines, after con16 ducting the analysis of alternatives required by 

17 section 3, that— 

18 (i) the justifications of FAR 6.3 are 

19 met; 

20 (ii) the procurement and the use of a 

21 private sector entity as a lead systems inte22 grator for the procurement is in the best 

23 interest of the Federal Government; and 

24 (iii) the requirements of subsection (c) 

25 are met with respect to such procurement. 


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1 (2) REPORT ON DECISION-MAKING PROCESS.— 

2 If the Coast Guard determines under paragraph (1) 

3 that it will use a private sector lead systems inte4 grator for a procurement, the Commandant shall 

5 transmit a report to the Senate Committee on Com6 merce, Science, and Transportation and the House 

7 of Representatives Committee on Transportation 

8 and Infrastructure notifying the Committees of its 

9 determination and explaining the rationale for the 

10 determination. 

11 (c) LIMITATION ON LEAD SYSTEMS INTEGRATORS.— 

12 Neither an entity performing lead systems integrator func13 tions for a procurement under, or in support of, the Inte14 grated Deepwater Program, nor a Tier 1 subcontractor, 

15 for any procurement described in subparagraph (B) or (C) 

16 of subsection (b)(1) may have a financial interest below 

17 the tier 1 subcontractor level unless— 

18 (1) the entity was selected by the Coast Guard 

19 through full and open competition for such procure20 ment; 

21 (2) the procurement was awarded by the lead 

22 systems integrator or a subcontractor through full 

23 and open competition; or 

24 (3) the procurement was awarded by a subcon25 tractor through a process over which the lead sysVerDate Aug 31 2005 03:11 May 26, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S924.RS S924

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1 tems integrator or a Tier 1 subcontractor exercised 

2 no control. 

3 SEC. 3. ANALYSIS OF ALTERNATIVES. 

4 (a) IN GENERAL.—Except with respect to a procure5 ment described in subparagraph (A) or (B) of section 

6 2(b)(1) of this Act, no procurement may be awarded under 

7 the Integrated Deepwater Program until an analysis of al8 ternatives has been conducted under this section. 

9 (b) INDEPENDENT ANALYSIS.—Within 30 days after 

10 the date of enactment of this Act, the Commandant shall 

11 execute a contract for an analysis of alternatives with a 

12 Federally Funded Research and Development Center, an 

13 appropriate entity of the Department of Defense, or a 

14 similar independent third party entity that has appro15 priate acquisition expertise for independent analysis of all 

16 of the proposed procurements under, or in support of, the 

17 Integrated Deepwater Program, including procurements 

18 described in section 2(b)(1)(B), and for any future major 

19 changes of such procurements. The Commandant may not 

20 contract under this subsection for such an analysis with 

21 any entity that has a substantial financial interest in any 

22 part of the Integrated Deepwater Program as of the date 

23 of enactment of this Act or in any alternative being consid24 ered. 


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1 (c) ANALYSIS.—The analysis of alternatives provided 

2 pursuant to the contract under subsection (b) shall in3 clude— 

4 (1) a discussion of capability, interoperability, 

5 and other advantages and disadvantages of the pro6 posed procurements; 

7 (2) an examination of feasible alternatives; 

8 (3) a discussion of key assumptions and vari9 ables, and sensitivity to changes in such assumptions 

10 and variables; 

11 (4) an assessment of technology risk and matu12 rity; and 

13 (5) a calculation of costs, including life-cycle 

14 costs. 

15 (d) REPORT TO CONGRESS.—As soon as possible 

16 after an analysis of alternatives has been completed, the 

17 Commandant shall develop a plan for the procurements 

18 addressed in the analysis and shall transmit a report de19 scribing the plan to the Senate Committee on Commerce, 

20 Science, and Transportation and the House of Represent21 atives Committee on Transportation and Infrastructure. 

22 SEC. 4. CERTIFICATION. 

23 (a) IN GENERAL.—A contract, delivery order, or task 

24 order for procurement under, or in support of, the Coast 

25 Guard’s Integrated Deepwater Program may not be exeVerDate Aug 31 2005 03:11 May 26, 2007 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6401 E:\BILLS\S924.RS S924

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1 cuted by the Coast Guard until the Commandant certifies 

2 that— 

3 (1) appropriate market research has been con4 ducted prior to technology development to reduce 

5 duplication of existing technology and products; 

6 (2) the technology has been demonstrated in a 

7 relevant environment; 

8 (3) the technology demonstrates a high likeli9 hood of accomplishing its intended mission; 

10 (4) the technology is affordable when consid11 ering the per unit cost and the total procurement 

12 cost in the context of the total resources available 

13 during the period covered by the Integrated Deep14 water Program; 

15 (5) the technology is affordable when consid16 ering the ability of the Coast Guard to accomplish 

17 its missions using alternatives, based on dem18 onstrated technology, design, and knowledge; 

19 (6) reasonable cost and schedule estimates have 

20 been developed to execute the product development 

21 and production plan for the technology; 

22 (7) funding is available to execute the product 

23 development and production plan for the technology; 

24 and 


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1 (8) the technology complies with all relevant 

2 policies, regulations, and directives of the Coast 

3 Guard. 

4 (b) REPORT TO CONGRESS.—The Commandant shall 

5 transmit a copy of each certification required under sub6 section (a) to the Senate Committee on Commerce, 

7 Science, and Transportation and the House of Represent8 atives Committee on Transportation and Infrastructure 

9 within 30 days after the completion of the certification. 

10 SEC. 5. CONTRACT REQUIREMENTS. 

11 The Commandant shall ensure that any contract, de12 livery order, or task order for procurement under, or in 

13 support of, the Integrated Deepwater Program executed 

14 by the Coast Guard— 

15 (1) incorporates provisions that address the rec16 ommendations related to award fee determination 

17 and award term evaluation made by the Government 

18 Accountability Office in its March, 2004, report en19 titled Coast Guard’s Deepwater Program Needs In20 creased Attention to Management and Contractor 

21 Oversight, GAO–04–380, and any subsequent Gov22 ernment Accountability Office recommendations rel23 evant to the contract terms issued before the date of 

24 enactment of this Act, including that any award or 

25 incentive fee is tied to program outcomes; 


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1 (2) provides that certification of any Integrated 

2 Deepwater Program procurement for performance, 

3 safety, and any other relevant factor will be con4 ducted by an independent third party; 

5 (3) does not include— 

6 (A) for any contract extending the existing 

7 Integrated Deepwater Program contract term, 

8 minimum requirements for the purchase of a 

9 given or determinable number of specific assets; 

10 (B) provisions that commit the Coast 

11 Guard without express written approval by the 

12 Coast Guard; 

13 (C) any provision allowing for equitable ad14 justment that differs from the Federal Acquisi15 tion Regulations; and 

16 (4) for any contract extending the existing Inte17 grated Deepwater Program contract term, is re18 viewed by, and addresses recommendations made by, 

19 the Under Secretary of Defense for Acquisition, 

20 Technology, and Logistics through the Defense Ac21 quisition University. 

22 SEC. 6. IMPROVEMENTS IN COAST GUARD MANAGEMENT. 

23 (a) IN GENERAL.—As soon as practicable after the 

24 date of enactment of this Act, the Commandant shall take 

25 action to ensure that— 


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1 (1) the measures contained in the Coast 

2 Guard’s report entitled Coast Guard: Blue Print for 

3 Acquisition Reform are implemented fully; 

4 (2) any additional measures for improved man5 agement recommended by the Defense Acquisition 

6 University in its Quick Look Study of the United 

7 States Coast Guard Deepwater Program, dated Feb8 ruary 5, 2007, are implemented; 

9 (3) integrated product teams, and all higher10 level teams that oversee integrated product teams, 

11 are chaired by Coast Guard personnel; and 

12 (4) the Assistant Commandant for Engineering 

13 and Logistics is designated as the Technical Author14 ity for all design, engineering, and technical deci15 sions for the Integrated Deepwater Program. 

16 (b) TRANSFER.— 

17 (1) IN GENERAL.—Section 93(a) of title 14, 

18 United States Code, is amended— 

19 (A) by striking ‘‘and’’ after the semicolon 

20 in paragraph (23); 

21 (B) by striking ‘‘appropriate.’’ in para22 graph (24) and inserting ‘‘appropriate; and’’; 

23 and 

24 (C) by adding at the end thereof the fol25 lowing: 


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1 ‘‘(25) notwithstanding any other provision of 

2 law, in any fiscal year transfer funds made available 

3 for personnel, compensation, and benefits from the 

4 appropriation account ‘Acquisition, Construction, 

5 and Improvement’ to the appropriation account ‘Op6 erating Expenses’ for personnel compensation and 

7 benefits and related costs necessary to execute new 

8 or existing procurements of the Coast Guard.’’. 

9 (2) NOTIFICATION.—Within 30 days after mak10 ing a transfer under section 93(a)(25) of title 14, 

11 United States Code, the Commandant shall notify 

12 the Senate Committee on Commerce, Science, 

13 Transportation and Infrastructure, the Senate Com14 mittee on Appropriations, the House Committee on 

15 Transportation and Infrastructure, and the House 

16 Committee on Appropriations. 

17 SEC. 7. PROCUREMENT AND REPORT REQUIREMENTS. 

18 (a) SELECTED ACQUISITION REPORTS.—The Com19 mandant shall submit to the Senate Committee on Com20 merce, Science, and Transportation and the House of Rep21 resentatives Committee on Transportation and Infrastruc22 ture reports on the Integrated Deepwater Program that 

23 contain the same type of information with respect to that 

24 Program, to the greatest extent practicable, as the Sec25 retary of Defense is required to provide to the Congress 


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1 under section 2432 of title 10, United States Code, with 

2 respect to major defense procurement programs. 

3 (b) UNIT COST REPORTS.—Each Coast Guard pro4 gram manager under the Coast Guard’s Integrated Deep5 water Program shall provide to the Commandant, or the 

6 Commandant’s designee, reports on the unit cost of assets 

7 acquired or modified that are under the management or 

8 control of the Coast Guard program manager on the same 

9 basis and containing the same information, to the greatest 

10 extent practicable, as is required to be included in the re11 ports a program manager is required to provide to the 

12 service procurement executive designated by the Secretary 

13 of Defense under section 2433 of title 10, United States 

14 Code, with respect to a major defense procurement pro15 gram. 

16 (c) REPORTING ON COST OVERRUNS AND DELAYS.— 

17 Within 30 days after the Commandant becomes aware of 

18 a likely cost overrun or scheduled delay, the Commandant 

19 shall transmit a report to the Senate Committee on Com20 merce, Science, and Transportation and the House of Rep21 resentatives Committee on Transportation and Infrastruc22 ture that includes— 

23 (1) a description of the known or anticipated 

24 cost overrun; 

25 (2) a detailed explanation for such overruns; 


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1 (3) a detailed description of the Coast Guard’s 

2 plans for responding to such overrun and preventing 

3 additional overruns; and 

4 (4) a description of any significant delays in 

5 procurement schedules. 

6 SEC. 8. GAO REVIEW AND RECOMMENDATIONS. 

7 (a) AWARD FEE AND AWARD TERM CRITERIA.—The 

8 Coast Guard may not execute a new contract, delivery 

9 order, or task order, nor agree to extend the term of an 

10 existing contract, with a prime contractor for procurement 

11 under, or in support of, the Integrated Deepwater Pro12 gram until the Commandant has consulted with the Comp13 troller General to ensure that the Government Account14 ability Office’s recommendations, in its March, 2004, re15 port entitled Coast Guard’s Deepwater Program Needs In16 creased Attention to Management and Contractor Over17 sight, GAO–04–380, and any subsequent Government Ac18 countability Office recommendations issued before the 

19 date of enactment of this Act, with respect to award fee 

20 and award term criteria have been fully addressed. 

21 (b) OTHER RECOMMENDATIONS.—The Commandant 

22 shall ensure that all other recommendations in that report, 

23 and any subsequent recommendations issued before the 

24 date of enactment of this Act, are implemented to the 

25 maximum extent practicable by the Coast Guard within 


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1 1 year after the date of enactment of this Act. The Com2 mandant shall report to the Senate Committee on Com3 merce, Science, and Transportation and the House of Rep4 resentatives Committee on Transportation and Infrastruc5 ture on the Coast Guard’s progress in implementing such 

6 recommendations. 

7 (c) GAO REPORTS ON IMPLEMENTATION.—Begin8 ning 6 months after the date of enactment of this Act, 

9 the Comptroller General shall submit an annual report to 

10 the Senate Committee on Commerce, Science, and Trans11 portation and the House of Representatives Committee on 

12 Transportation and Infrastructure on the Coast Guard’s 

13 progress in implementing the Government Accountability 

14 Office’s recommendations, in its March, 2004, report enti15 tled Coast Guard’s Deepwater Program Needs Increased 

16 Attention to Management and Contractor Oversight, 

17 GAO–04–380, and any subsequent Government Account18 ability Office recommendations issued before the date of 

19 enactment of this Act, in carrying out this Act. 

20 SEC. 9. DEFINITIONS. 

21 In this Act: 

22 (1) COMMANDANT.—The term ‘‘Commandant’’ 

23 means the Commandant of the United States Coast 

24 Guard. 


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1 (2) INTEGRATED DEEPWATER PROGRAM.—The 

2 term ‘‘Integrated Deepwater Program’’ means the 

3 Integrated Deepwater Systems Program described 

4 by the Coast Guard in its Report to Congress on Re5 vised Deepwater Implementation Plan, dated March 

6 25, 2005, including any subsequent modifications, 

7 revisions, or restatements of the Program. 

8 (3) PROCUREMENT.—The term ‘‘procurement’’ 

9 includes development, production, sustainment, 

10 modification, conversion, and missionization. 

11 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

12 (a) SHORT TITLE.—This Act may be cited as the ‘‘In13 tegrated Deepwater Program Reform Act’’. 

14 (b) TABLE OF CONTENTS.—The table of contents for 

15 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. 

16 SEC. 2. PROCUREMENT STRUCTURE. 

17 (a) IN GENERAL.— 

18 (1) USE OF LEAD SYSTEMS INTEGRATOR.—Ex19 cept as provided in subsection (b), the United States 

20 Coast Guard may not use a private sector entity as 


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1 a lead systems integrator for procurements under, or 

2 in support of, the Integrated Deepwater Program 

3 after the date of enactment of this Act. 

4 (2) FULL AND OPEN COMPETITION.—The United 

5 States Coast Guard shall utilize full and open com6 petition for any other procurement for which an out7 side contractor is used under, or in support of, the In8 tegrated Deepwater Program after the date of enact9 ment of this Act. 

10 (b) EXCEPTIONS.— 

11 (1) COMPLETION OF PROCUREMENT BY LEAD

12 SYSTEMS INTEGRATOR.—Notwithstanding subsection 

13 (a), the Coast Guard may use a private sector entity 

14 as a lead systems integrator— 

15 (A) to complete any delivery order or task 

16 order that was issued to the lead systems inte17 grator on or before the date of enactment of this 

18 Act without any change in the quantity of assets 

19 or the specific type of assets covered by the order; 

20 (B) for procurements of— 

21 (i) the HC–130J and the C41SR, and 

22 (ii) National Security Cutters or Mari23 time Patrol Aircraft under contract or order 

24 for construction as of the date of enactment 

25 of this Act, 


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1 if the requirements of subsection (c) are met with 

2 respect to such procurements; and 

3 (C) for the procurement of additional Na4 tional Security Cutters or Maritime Patrol Air5 craft if the Commandant determines, after con6 ducting the analysis of alternatives required by 

7 section 3, that— 

8 (i) the justifications of FAR 6.3 are 

9 met; 

10 (ii) the procurement and the use of a 

11 private sector entity as a lead systems inte12 grator for the procurement is in the best in13 terest of the Federal government; and 

14 (iii) the requirements of subsection (c) 

15 are met with respect to such procurement. 

16 (2) AWARDS TO TIER 1 SUBCONTRACTORS.—The 

17 Coast Guard may award to any Tier 1 subcontractor 

18 or subcontractor below the Tier 1 level any procure19 ment that it could award to a lead systems integrator 

20 under paragraph (1). 

21 (3) REPORT ON DECISION-MAKING PROCESS.—If 

22 the Coast Guard determines under paragraph (1) that 

23 it will use a private sector lead systems integrator for 

24 a procurement, the Commandant shall transmit a re25 port to the Senate Committee on Commerce, Science, 


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1 and Transportation and the House of Representatives 

2 Committee on Transportation and Infrastructure no3 tifying the Committees of its determination and ex4 plaining the rationale for the determination. 

5 (c) LIMITATION ON LEAD SYSTEMS INTEGRATORS.— 

6 Neither an entity performing lead systems integrator func7 tions for a procurement under, or in support of, the Inte8 grated Deepwater Program, nor a Tier 1 subcontractor, for 

9 any procurement described in subparagraph (B) or (C) of 

10 subsection (b)(1) may have a financial interest in a subcon11 tractor below the tier 1 subcontractor level unless— 

12 (1) the entity was selected by the Coast Guard 

13 through full and open competition for such procure14 ment; 

15 (2) the procurement was awarded by the lead 

16 systems integrator or a subcontractor through full and 

17 open competition; 

18 (3) the procurement was awarded by a subcon19 tractor through a process over which the lead systems 

20 integrator or a Tier 1 subcontractor exercised no con21 trol; or 

22 (4) the Commandant has determined that the 

23 justifications of FAR 6.3 are met. 


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1 SEC. 3. ANALYSIS OF ALTERNATIVES. 

2 (a) IN GENERAL.—Except with respect to a procure3 ment described in subparagraph (A) or (B) of section 

4 2(b)(1) of this Act, or a procurement for which a request 

5 for proposals consistent with the FAR has been issued before 

6 the date of enactment of this Act, no procurement may be 

7 awarded under the Integrated Deepwater Program until an 

8 analysis of alternatives has been conducted under this sec9 tion. 

10 (b) INDEPENDENT ANALYSIS.—As soon as possible, but 

11 no later than 120 days after the date of enactment of this 

12 Act, the Commandant shall execute a contract for an anal13 ysis of alternatives with a Federally Funded Research and 

14 Development Center, an appropriate entity of the Depart15 ment of Defense, or a similar independent third party enti16 ty that has appropriate acquisition expertise for inde17 pendent analysis of all of the proposed procurements under, 

18 or in support of, the Integrated Deepwater Program, in19 cluding procurements described in section 2(b)(1)(B), and 

20 for any future major changes of such procurements. The 

21 Commandant may not contract under this subsection for 

22 such an analysis with any entity that has a substantial 

23 financial interest in any part of the Integrated Deepwater 

24 Program as of the date of enactment of this Act or in any 

25 alternative being considered. 


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1 (c) ANALYSIS.—The analysis of alternatives provided 

2 pursuant to the contract under subsection (b) for procure3 ments and feasible alternatives shall include— 

4 (1) an examination of capability, interoper5 ability, and other advantages and disadvantages; 

6 (2) an evaluation of whether different quantities 

7 of specific assets could meet the Coast Guard’s overall 

8 performance needs; 

9 (3) a discussion of key assumptions and vari10 ables, and sensitivity to changes in such assumptions 

11 and variables; 

12 (4) an assessment of technology risk and matu13 rity; 

14 (5) an evaluation of safety and performance 

15 records; and 

16 (6) a calculation of costs, including life-cycle 

17 costs. 

18 (d) REPORT TO CONGRESS.—As soon as possible after 

19 an analysis of alternatives has been completed, the Com20 mandant shall develop a plan for the procurements ad21 dressed in the analysis, as well as procurements described 

22 in subsection (a) for which no analysis of alternatives is 

23 required, and shall transmit a report describing the plan, 

24 and the schedule and costs for delivery of such procurements 

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1 portation and the House of Representatives Committee on 

2 Transportation and Infrastructure. 

3 SEC. 4. CERTIFICATION. 

4 (a) IN GENERAL.—After the date of enactment of this 

5 Act, a contract, delivery order, or task order exceeding 

6 $10,000,000 for procurement under, or in support of, the 

7 Coast Guard’s Integrated Deepwater Program may not be 

8 executed by the Coast Guard until the Commandant cer9 tifies that— 

10 (1) appropriate market research has been con11 ducted prior to technology development to reduce du12 plication of existing technology and products; 

13 (2) the technology has been demonstrated to the 

14 maximum extent practicable in a relevant environ15 ment; 

16 (3) the technology demonstrates a high likelihood 

17 of accomplishing its intended mission; 

18 (4) the technology is affordable when considering 

19 the per unit cost and the total procurement cost in the 

20 context of the total resources available during the pe21 riod covered by the Integrated Deepwater Program; 

22 (5) the technology is affordable when considering 

23 the ability of the Coast Guard to accomplish its mis24 sions using alternatives, based on demonstrated tech25 nology, design, and knowledge; 


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1 (6) funding is available to execute the contract, 

2 delivery order, or task order; and 

3 (7) the technology complies with all relevant 

4 policies, regulations, and directives of the Coast 

5 Guard. 

6 (b) LIMITATION.—Nothing in this section shall prevent 

7 the Coast Guard from executing contracts or issuing deliver 

8 orders or task orders, for research and development or tech9 nology demonstrations under, or in support of, the Inte10 grated Deepwater Program. 

11 (c) REPORT TO CONGRESS.—The Commandant shall 

12 transmit a copy of each certification required under sub13 section (a) to the Senate Committee on Commerce, Science, 

14 and Transportation and the House of Representatives Com15 mittee on Transportation and Infrastructure within 30 

16 days after the completion of the certification. 

17 SEC. 5. CONTRACT REQUIREMENTS. 

18 The Commandant shall ensure that any contract, de19 livery order, or task order for procurement under, or in sup20 port of, the Integrated Deepwater Program executed by the 

21 Coast Guard— 

22 (1) addresses the recommendations related to 

23 award fee determination and award term evaluation 

24 made by the Government Accountability Office in its 

25 March, 2004, report entitled Coast Guard’s Deepwater 


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1 Program Needs Increased Attention to Management 

2 and Contractor Oversight, GAO–04–380, and any 

3 subsequent Government Accountability Office rec4 ommendations relevant to the contract terms issued 

5 before March 1, 2007, including the recommendation 

6 that any award or incentive fee be tied to program 

7 outcomes; 

8 (2) provides that certification of any Integrated 

9 Deepwater Program procurement for performance, 

10 safety, and other relevant factors determined by the 

11 Commandant will be conducted by an independent 

12 third party; 

13 (3) does not include— 

14 (A) for any contract extending the existing 

15 Integrated Deepwater Program contract term 

16 that expires in June, 2007, minimum require17 ments for the purchase of a given or deter18 minable number of specific assets; 

19 (B) provisions that commit the Coast Guard 

20 without express written approval by the Coast 

21 Guard; 

22 (C) any provision allowing for equitable ad23 justment that differs from the Federal Acquisi24 tion Regulations; 


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1 (4) for any contract extending the existing Inte2 grated Deepwater Program contract term that expires 

3 in June, 2007, is reviewed by, and addresses rec4 ommendations made by, the Under Secretary of De5 fense for Acquisition, Technology, and Logistics 

6 through the Defense Acquisition University in its 

7 Quick Look Study dated February 5, 2007; and 

8 (5) meets the requirements of the Systems Acqui9 sition Manual. 

10 SEC. 6. IMPROVEMENTS IN COAST GUARD MANAGEMENT. 

11 (a) IN GENERAL.—As soon as practicable after the 

12 date of enactment of this Act, the Commandant shall take 

13 action to ensure that— 

14 (1) the measures contained in the Coast Guard’s 

15 report entitled Coast Guard: Blue Print for Acquisi16 tion Reform are implemented fully; 

17 (2) any additional measures for improved man18 agement recommended by the Defense Acquisition 

19 University in its Quick Look Study of the United 

20 States Coast Guard Deepwater Program, dated Feb21 ruary 5, 2007, are implemented; 

22 (3) integrated product teams, and all higher-level 

23 teams that oversee integrated product teams, are 

24 chaired by Coast Guard personnel; and 


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1 (4) the Assistant Commandant for Engineering 

2 and Logistics is designated as the Technical Author3 ity for all design, engineering, and technical decisions 

4 for the Integrated Deepwater Program. 

5 (b) TRANSFER.— 

6 (1) IN GENERAL.—Section 93(a) of title 14, 

7 United States Code, is amended— 

8 (A) by striking ‘‘and’’ after the semicolon in 

9 paragraph (23); 

10 (B) by striking ‘‘appropriate.’’ in para11 graph (24) and inserting ‘‘appropriate; and’’; 

12 and 

13 (C) by adding at the end thereof the fol14 lowing: 

15 ‘‘(25) notwithstanding any other provision of 

16 law, in any fiscal year transfer funds made available 

17 for personnel, compensation, and benefits from the ap18 propriation account ‘Acquisition, Construction, and 

19 Improvement’ to the appropriation account ‘Oper20 ating Expenses’ for personnel compensation and bene21 fits and related costs necessary to execute new or ex22 isting procurements of the Coast Guard.’’. 

23 (2) NOTIFICATION.—Within 30 days after mak24 ing a transfer under section 93(a)(25) of title 14, 

25 United States Code, the Commandant shall notify the 


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•S 924 RS 

1 Senate Committee on Commerce, Science, Transpor2 tation and Infrastructure, the Senate Committee on 

3 Appropriations, the House Committee on Transpor4 tation and Infrastructure, and the House Committee 

5 on Appropriations. 

6 SEC. 7. PROCUREMENT AND REPORT REQUIREMENTS. 

7 (a) SELECTED ACQUISITION REPORTS.—The Com8 mandant shall submit to the Senate Committee on Com9 merce, Science, and Transportation and the House of Rep10 resentatives Committee on Transportation and Infrastruc11 ture reports on the Integrated Deepwater Program that con12 tain the same type of information with respect to that Pro13 gram, to the greatest extent practicable, as the Secretary 

14 of Defense is required to provide to the Congress under sec15 tion 2432 of title 10, United States Code, with respect to 

16 major defense procurement programs. 

17 (b) UNIT COST REPORTS.—Each Coast Guard pro18 gram manager under the Coast Guard’s Integrated Deep19 water Program shall provide to the Commandant, or the 

20 Commandant’s designee, reports on the unit cost of assets 

21 acquired or modified that are under the management or 

22 control of the Coast Guard program manager on the same 

23 basis and containing the same information, to the greatest 

24 extent practicable, as is required to be included in the re25 ports a program manager is required to provide to the servVerDate Aug 31 2005 03:11 May 26, 2007 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6203 E:\BILLS\S924.RS S924

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1 ice procurement executive designated by the Secretary of 

2 Defense under section 2433 of title 10, United States Code, 

3 with respect to a major defense procurement program. 

4 (c) REPORTING ON COST OVERRUNS AND DELAYS.— 

5 Within 30 days after the Commandant becomes aware of 

6 a likely cost overrun or scheduled delay, the Commandant 

7 shall transmit a report to the Senate Committee on Com8 merce, Science, and Transportation and the House of Rep9 resentatives Committee on Transportation and Infrastruc10 ture that includes— 

11 (1) a description of the known or anticipated 

12 cost overrun; 

13 (2) a detailed explanation for such overruns; 

14 (3) a detailed description of the Coast Guard’s 

15 plans for responding to such overrun and preventing 

16 additional overruns; and 

17 (4) a description of any significant delays in 

18 procurement schedules. 

19 (d) PATROL BOAT REPORT.—Not later than 90 days 

20 after the date of enactment of this Act the Commandant 

21 shall submit to the Committee on Commerce, Science, and 

22 Transportation of the Senate and the Committee on Trans23 portation and Infrastructure of the House of Representa24 tives a report on how the Coast Guard plans to manage 

25 the annual readiness gap of lost time for 110-foot patrol 


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•S 924 RS 

1 boats from fiscal year 2008 through fiscal year 2014. The 

2 report shall include— 

3 (1) a summary of the patrol hours that will be 

4 lost due to delays in replacing the 110-foot cutters 

5 and reduced capabilities of the 110-foot cutters that 

6 have been converted; 

7 (2) an identification of assets that may be used 

8 to alleviate the annual readiness gap of lost time for 

9 such patrol boats; 

10 (3) a projection of the remaining operational 

11 lifespan of the 110-foot patrol boat fleet; 

12 (4) a description of how extending through fiscal 

13 year 2014 the transfer agreement between the Coast 

14 Guard and the United States Navy for 5 Cyclone 

15 class 179-foot patrol coastal ships would effect the an16 nual readiness gap of lost time for 110-foot patrol 

17 boats; and 

18 (5) an estimate of the cost to extend the oper19 ational lifespan of the 110-foot patrol boat fleet for 

20 each of fiscal years 2008 through 2014. 

21 SEC. 8. GAO REVIEW AND RECOMMENDATIONS. 

22 (a) AWARD FEE AND AWARD TERM CRITERIA.—The 

23 Coast Guard shall consult with the Comptroller General no 

24 later than June 1, 2007 to ensure that the Government Ac25 countability Office’s recommendations, in its March, 2004, 


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•S 924 RS 

1 report entitled Coast Guard’s Deepwater Program Needs In2 creased Attention to Management and Contractor Over3 sight, GAO–04–380, and any subsequent Government Ac4 countability Office recommendations issued before March 1, 

5 2007, with respect to award fee and award term criteria 

6 will be addressed to the maximum extent practicable in any 

7 contract, delivery order, or task order or extension of the 

8 existing contract for procurement under or in support of 

9 the Integrated Deepwater Program entered into after the 

10 date of enactment of this Act. 

11 (b) OTHER RECOMMENDATIONS.—The Commandant 

12 shall ensure that all other recommendations in that report, 

13 and any subsequent recommendations issued before March 

14 1, 2007, are implemented to the maximum extent prac15 ticable by the Coast Guard within 1 year after the date 

16 of enactment of this Act. The Commandant shall report to 

17 the Senate Committee on Commerce, Science, and Trans18 portation and the House of Representatives Committee on 

19 Transportation and Infrastructure on the Coast Guard’s 

20 progress in implementing such recommendations. 

21 (c) GAO REPORTS ON IMPLEMENTATION.—Beginning 

22 6 months after the date of enactment of this Act, the Comp23 troller General shall submit an annual report to the Senate 

24 Committee on Commerce, Science, and Transportation and 

25 the House of Representatives Committee on Transportation 


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1 and Infrastructure on the Coast Guard’s progress in imple2 menting the provisions of this Act, the Government Ac3 countability Office’s recommendations, in its March, 2004, 

4 report entitled Coast Guard’s Deepwater Program Needs In5 creased Attention to Management and Contractor Over6 sight, GAO–04–380, and any subsequent Government Ac7 countability Office recommendations issued before March 1, 

8 2007. 

9 SEC. 9. INSPECTOR GENERAL REVIEW OF DEEPWATER PRO10 GRAM. 

11 Not later than 240 days after the date of the enactment 

12 of this Act, the Inspector General of the Department of 

13 Homeland Security shall submit to the Secretary, and to 

14 Congress, a report on the acquisition of assets under the 

15 Deepwater program. The report shall include— 

16 (1) a description of each decision, if any, of the 

17 Coast Guard or Integrated Coast Guard Systems re18 lating to the acquisition of assets under the Deep19 water program that directly or indirectly resulted in 

20 cost overruns or program cost increases to the United 

21 States; 

22 (2) an assessment whether any decision covered 

23 by paragraph (1) violated the terms of the contract of 

24 Integrated Coast Guard Systems for the Deepwater 

25 program; 


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•S 924 RS 

1 (3) an assessment of how much program costs 

2 under the Deepwater program have increased as a re3 sult of any such decision; and 

4 (4) an assessment of whether the Coast Guard or 

5 Integrated Coast Guard Systems is responsible for the 

6 payment of any cost overruns associated with any 

7 such decision. 

8 SEC. 10. DEFINITIONS. 

9 In this Act: 

10 (1) COMMANDANT.—The term ‘‘Commandant’’ 

11 means the Commandant of the United States Coast 

12 Guard. 

13 (2) INTEGRATED DEEPWATER PROGRAM.—The 

14 term ‘‘Integrated Deepwater Program’’ means the In15 tegrated Deepwater Systems Program described by the 

16 Coast Guard in its Report to Congress on Revised 

17 Deepwater Implementation Plan, dated March 25, 

18 2005, including any subsequent modifications, revi19 sions, or restatements of the Program. 

20 (3) PROCUREMENT.—The term ‘‘procurement’’ 

21 includes development, production, sustainment, modi22 fication, conversion, and missionization. 


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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 


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