II 

110TH CONGRESS 

1ST SESSION S. 924 

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 

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’’. 

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

7 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. 


bajohnson on PROD1PC77 with BILLS
2 

•S 924 IS 

Sec. 7. Procurement and report requirements. 

Sec. 8. GAO review and recommendations. 

Sec. 9. Definitions. 

1 SEC. 2. PROCUREMENT STRUCTURE. 

2 (a) IN GENERAL.— 

3 (1) USE OF LEAD SYSTEMS INTEGRATOR.—Ex4 cept as provided in subsection (b), the United States 

5 Coast Guard may not use a private sector entity as 

6 a lead systems integrator for procurements under, or 

7 in support of, the Integrated Deepwater Program 

8 after the date of enactment of this Act. 

9 (2) FULL AND OPEN COMPETITION.—The 

10 United States Coast Guard shall utilize full and 

11 open competition for any other procurement for 

12 which an outside contractor is used under, or in sup13 port of, the Integrated Deepwater Program after the 

14 date of enactment of this Act. 

15 (b) EXCEPTIONS.— 

16 (1) COMPLETION OF PROCUREMENT BY LEAD

17 SYSTEMS INTEGRATOR.—Notwithstanding subsection 

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

19 as a lead systems integrator— 

20 (A) to complete, without modification, any 

21 delivery order or task order that was issued to 

22 the lead systems integrator on or before the 

23 date of enactment of this Act; 

24 (B) for procurements of— 


bajohnson on PROD1PC77 with BILLS
3 

•S 924 IS 

1 (i) the HC–130J and the C41SR, and 

2 (ii) National Security Cutters or Mar3 itime Patrol Aircraft under contract or 

4 order for construction as of the date of en5 actment of this Act, 

6 if the requirements of subsection (c) are met 

7 with respect to such procurements; and 

8 (C) for the procurement of additional Na9 tional Security Cutters or Maritime Patrol Air10 craft if the Commandant determines, after con11 ducting the analysis of alternatives required by 

12 section 3, that— 

13 (i) the justifications of FAR 6.3 are 

14 met; 

15 (ii) the procurement and the use of a 

16 private sector entity as a lead systems inte17 grator for the procurement is in the best 

18 interest of the Federal Government; and 

19 (iii) the requirements of subsection (c) 

20 are met with respect to such procurement. 

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

22 If the Coast Guard determines under paragraph (1) 

23 that it will use a private sector lead systems inte24 grator for a procurement, the Commandant shall 

25 transmit a report to the Senate Committee on ComVerDate Aug 31 2005 06:08 Mar 24, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S924.IS S924

bajohnson on PROD1PC77 with BILLS
4 

•S 924 IS 

1 merce, Science, and Transportation and the House 

2 of Representatives Committee on Transportation 

3 and Infrastructure notifying the Committees of its 

4 determination and explaining the rationale for the 

5 determination. 

6 (c) LIMITATION ON LEAD SYSTEMS INTEGRATORS.— 

7 Neither an entity performing lead systems integrator func8 tions for a procurement under, or in support of, the Inte9 grated Deepwater Program, nor a Tier 1 subcontractor, 

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

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

12 the tier 1 subcontractor level unless— 

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

14 through full and open competition for such procure15 ment; 

16 (2) the procurement was awarded by the lead 

17 systems integrator or a subcontractor through full 

18 and open competition; or 

19 (3) the procurement was awarded by a subcon20 tractor through a process over which the lead sys21 tems integrator or a Tier 1 subcontractor exercised 

22 no control. 

23 SEC. 3. ANALYSIS OF ALTERNATIVES. 

24 (a) IN GENERAL.—Except with respect to a procure25 ment described in subparagraph (A) or (B) of section 


bajohnson on PROD1PC77 with BILLS
5 

•S 924 IS 

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

2 the Integrated Deepwater Program until an analysis of al3 ternatives has been conducted under this section. 

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

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

6 execute a contract for an analysis of alternatives with a 

7 Federally Funded Research and Development Center, an 

8 appropriate entity of the Department of Defense, or a 

9 similar independent third party entity that has appro10 priate acquisition expertise for independent analysis of all 

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

12 Integrated Deepwater Program, including procurements 

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

14 changes of such procurements. The Commandant may not 

15 contract under this subsection for such an analysis with 

16 any entity that has a substantial financial interest in any 

17 part of the Integrated Deepwater Program as of the date 

18 of enactment of this Act or in any alternative being consid19 ered. 

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

21 pursuant to the contract under subsection (b) shall in22 clude— 

23 (1) a discussion of capability, interoperability, 

24 and other advantages and disadvantages of the pro25 posed procurements; 


bajohnson on PROD1PC77 with BILLS
6 

•S 924 IS 

1 (2) an examination of feasible alternatives; 

2 (3) a discussion of key assumptions and vari3 ables, and sensitivity to changes in such assumptions 

4 and variables; 

5 (4) an assessment of technology risk and matu6 rity; and 

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

8 costs. 

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

10 after an analysis of alternatives has been completed, the 

11 Commandant shall develop a plan for the procurements 

12 addressed in the analysis and shall transmit a report de13 scribing the plan to the Senate Committee on Commerce, 

14 Science, and Transportation and the House of Represent15 atives Committee on Transportation and Infrastructure. 

16 SEC. 4. CERTIFICATION. 

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

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

19 Guard’s Integrated Deepwater Program may not be exe20 cuted by the Coast Guard until the Commandant certifies 

21 that— 

22 (1) appropriate market research has been con23 ducted prior to technology development to reduce 

24 duplication of existing technology and products; 


bajohnson on PROD1PC77 with BILLS
7 

•S 924 IS 

1 (2) the technology has been demonstrated in a 

2 relevant environment; 

3 (3) the technology demonstrates a high likeli4 hood of accomplishing its intended mission; 

5 (4) the technology is affordable when consid6 ering the per unit cost and the total procurement 

7 cost in the context of the total resources available 

8 during the period covered by the Integrated Deep9 water Program; 

10 (5) the technology is affordable when consid11 ering the ability of the Coast Guard to accomplish 

12 its missions using alternatives, based on dem13 onstrated technology, design, and knowledge; 

14 (6) reasonable cost and schedule estimates have 

15 been developed to execute the product development 

16 and production plan for the technology; 

17 (7) funding is available to execute the product 

18 development and production plan for the technology; 

19 and 

20 (8) the technology complies with all relevant 

21 policies, regulations, and directives of the Coast 

22 Guard. 

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

24 transmit a copy of each certification required under sub25 section (a) to the Senate Committee on Commerce, 


bajohnson on PROD1PC77 with BILLS
8 

•S 924 IS 

1 Science, and Transportation and the House of Represent2 atives Committee on Transportation and Infrastructure 

3 within 30 days after the completion of the certification. 

4 SEC. 5. CONTRACT REQUIREMENTS. 

5 The Commandant shall ensure that any contract, de6 livery order, or task order for procurement under, or in 

7 support of, the Integrated Deepwater Program executed 

8 by the Coast Guard— 

9 (1) incorporates provisions that address the rec10 ommendations related to award fee determination 

11 and award term evaluation made by the Government 

12 Accountability Office in its March, 2004, report en13 titled Coast Guard’s Deepwater Program Needs In14 creased Attention to Management and Contractor 

15 Oversight, GAO–04–380, and any subsequent Gov16 ernment Accountability Office recommendations rel17 evant to the contract terms issued before the date of 

18 enactment of this Act, including that any award or 

19 incentive fee is tied to program outcomes; 

20 (2) provides that certification of any Integrated 

21 Deepwater Program procurement for performance, 

22 safety, and any other relevant factor will be con23 ducted by an independent third party; 

24 (3) does not include— 


bajohnson on PROD1PC77 with BILLS
9 

•S 924 IS 

1 (A) for any contract extending the existing 

2 Integrated Deepwater Program contract term, 

3 minimum requirements for the purchase of a 

4 given or determinable number of specific assets; 

5 (B) provisions that commit the Coast 

6 Guard without express written approval by the 

7 Coast Guard; 

8 (C) any provision allowing for equitable ad9 justment that differs from the Federal Acquisi10 tion Regulations; and 

11 (4) for any contract extending the existing Inte12 grated Deepwater Program contract term, is re13 viewed by, and addresses recommendations made by, 

14 the Under Secretary of Defense for Acquisition, 

15 Technology, and Logistics through the Defense Ac16 quisition University. 

17 SEC. 6. IMPROVEMENTS IN COAST GUARD MANAGEMENT. 

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

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

20 action to ensure that— 

21 (1) the measures contained in the Coast 

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

23 Acquisition Reform are implemented fully; 

24 (2) any additional measures for improved man25 agement recommended by the Defense Acquisition 


bajohnson on PROD1PC77 with BILLS
10 

•S 924 IS 

1 University in its Quick Look Study of the United 

2 States Coast Guard Deepwater Program, dated Feb3 ruary 5, 2007, are implemented; 

4 (3) integrated product teams, and all higher5 level teams that oversee integrated product teams, 

6 are chaired by Coast Guard personnel; and 

7 (4) the Assistant Commandant for Engineering 

8 and Logistics is designated as the Technical Author9 ity for all design, engineering, and technical deci10 sions for the Integrated Deepwater Program. 

11 (b) TRANSFER.— 

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

13 United States Code, is amended— 

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

15 in paragraph (23); 

16 (B) by striking ‘‘appropriate.’’ in para17 graph (24) and inserting ‘‘appropriate; and’’; 

18 and 

19 (C) by adding at the end thereof the fol20 lowing: 

21 ‘‘(25) notwithstanding any other provision of 

22 law, in any fiscal year transfer funds made available 

23 for personnel, compensation, and benefits from the 

24 appropriation account ‘Acquisition, Construction, 

25 and Improvement’ to the appropriation account ‘OpVerDate Aug 31 2005 04:06 Mar 24, 2007 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S924.IS S924

bajohnson on PROD1PC77 with BILLS
11 

•S 924 IS 

1 erating Expenses’ for personnel compensation and 

2 benefits and related costs necessary to execute new 

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

4 (2) NOTIFICATION.—Within 30 days after mak5 ing a transfer under section 93(a)(25) of title 14, 

6 United States Code, the Commandant shall notify 

7 the Senate Committee on Commerce, Science, 

8 Transportation and Infrastructure, the Senate Com9 mittee on Appropriations, the House Committee on 

10 Transportation and Infrastructure, and the House 

11 Committee on Appropriations. 

12 SEC. 7. PROCUREMENT AND REPORT REQUIREMENTS. 

13 (a) SELECTED ACQUISITION REPORTS.—The Com14 mandant shall submit to the Senate Committee on Com15 merce, Science, and Transportation and the House of Rep16 resentatives Committee on Transportation and Infrastruc17 ture reports on the Integrated Deepwater Program that 

18 contain the same type of information with respect to that 

19 Program, to the greatest extent practicable, as the Sec20 retary of Defense is required to provide to the Congress 

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

22 respect to major defense procurement programs. 

23 (b) UNIT COST REPORTS.—Each Coast Guard pro24 gram manager under the Coast Guard’s Integrated Deep25 water Program shall provide to the Commandant, or the 


bajohnson on PROD1PC77 with BILLS
12 

•S 924 IS 

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

2 acquired or modified that are under the management or 

3 control of the Coast Guard program manager on the same 

4 basis and containing the same information, to the greatest 

5 extent practicable, as is required to be included in the re6 ports a program manager is required to provide to the 

7 service procurement executive designated by the Secretary 

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

9 Code, with respect to a major defense procurement pro10 gram. 

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

12 Within 30 days after the Commandant becomes aware of 

13 a likely cost overrun or scheduled delay, the Commandant 

14 shall transmit a report to the Senate Committee on Com15 merce, Science, and Transportation and the House of Rep16 resentatives Committee on Transportation and Infrastruc17 ture that includes— 

18 (1) a description of the known or anticipated 

19 cost overrun; 

20 (2) a detailed explanation for such overruns; 

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

22 plans for responding to such overrun and preventing 

23 additional overruns; and 

24 (4) a description of any significant delays in 

25 procurement schedules. 


bajohnson on PROD1PC77 with BILLS
13 

•S 924 IS 

1 SEC. 8. GAO REVIEW AND RECOMMENDATIONS. 

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

3 Coast Guard may not execute a new contract, delivery 

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

5 existing contract, with a prime contractor for procurement 

6 under, or in support of, the Integrated Deepwater Pro7 gram until the Commandant has consulted with the Comp8 troller General to ensure that the Government Account9 ability Office’s recommendations, in its March, 2004, re10 port entitled Coast Guard’s Deepwater Program Needs In11 creased Attention to Management and Contractor Over12 sight, GAO–04–380, and any subsequent Government Ac13 countability Office recommendations issued before the 

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

15 and award term criteria have been fully addressed. 

16 (b) OTHER RECOMMENDATIONS.—The Commandant 

17 shall ensure that all other recommendations in that report, 

18 and any subsequent recommendations issued before the 

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

20 maximum extent practicable by the Coast Guard within 

21 1 year after the date of enactment of this Act. The Com22 mandant shall report to the Senate Committee on Com23 merce, Science, and Transportation and the House of Rep24 resentatives Committee on Transportation and Infrastruc25 ture on the Coast Guard’s progress in implementing such 

26 recommendations. 


bajohnson on PROD1PC77 with BILLS
14 

•S 924 IS 

1 (c) GAO REPORTS ON IMPLEMENTATION.—Begin2 ning 6 months after the date of enactment of this Act, 

3 the Comptroller General shall submit an annual report to 

4 the Senate Committee on Commerce, Science, and Trans5 portation and the House of Representatives Committee on 

6 Transportation and Infrastructure on the Coast Guard’s 

7 progress in implementing the Government Accountability 

8 Office’s recommendations, in its March, 2004, report enti9 tled Coast Guard’s Deepwater Program Needs Increased 

10 Attention to Management and Contractor Oversight, 

11 GAO–04–380, and any subsequent Government Account12 ability Office recommendations issued before the date of 

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

14 SEC. 9. DEFINITIONS. 

15 In this Act: 

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

17 means the Commandant of the United States Coast 

18 Guard. 

19 (2) INTEGRATED DEEPWATER PROGRAM.—The 

20 term ‘‘Integrated Deepwater Program’’ means the 

21 Integrated Deepwater Systems Program described 

22 by the Coast Guard in its Report to Congress on Re23 vised Deepwater Implementation Plan, dated March 

24 25, 2005, including any subsequent modifications, 

25 revisions, or restatements of the Program. 


bajohnson on PROD1PC77 with BILLS
15 

•S 924 IS 

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

2 includes development, production, sustainment, 

3 modification, conversion, and missionization. 

Æ 


bajohnson on PROD1PC77 with BILLS