I 

111TH CONGRESS 

1ST SESSION H. R. 1665 

To structure Coast Guard acquisition processes and policies, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 23, 2009 

Mr. CUMMINGS (for himself, Mr. OBERSTAR, Mr. MICA, and Mr. LOBIONDO) 

introduced the following bill; which was referred to the Committee on 

Transportation and Infrastructure 

A BILL 

To structure Coast Guard acquisition processes and policies, 

and for other purposes. 

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 ‘‘Coast Guard Acquisition Reform Act of 2009’’. 

6 (b) TABLE OF CONTENTS.— 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—RESTRICTIONS ON THE USE OF LEAD SYSTEMS 

INTEGRATORS 

Sec. 101. Procurement structure. 

TITLE II—COAST GUARD ACQUISITION POLICY 


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Sec. 201. Operational requirements. 

Sec. 202. Required contract terms. 

Sec. 203. Life-cycle cost estimates. 

Sec. 204. Test and evaluation. 

Sec. 205. Capability standards. 

Sec. 206. Acquisition program reports. 

Sec. 207. Undefinitized contractual actions. 

Sec. 208. Guidance on excessive pass-through charges. 

Sec. 209. Acquisition of major capabilities: Alternatives analysis. 

Sec. 210. Cost overruns and delays. 

Sec. 211. Report on former Coast Guard officials employed by contractors to 

the agency. 

Sec. 212. Department of Defense consultation. 

TITLE III—COAST GUARD PERSONNEL 

Sec. 301. Chief Acquisition Officer. 

Sec. 302. Improvements in Coast Guard acquisition management. 

Sec. 303. Recognition of Coast Guard personnel for excellence in acquisition. 

Sec. 304. Enhanced status quo officer promotion system. 

Sec. 305. Coast Guard acquisition workforce expedited hiring authority. 

1 SEC. 2. DEFINITIONS. 

2 In this Act, the following definitions apply: 

3 (1) APPROPRIATE CONGRESSIONAL COMMIT4 TEES.—The term ‘‘appropriate congressional com5 mittees’’ means the Committee on Transportation 

6 and Infrastructure of the House of Representatives 

7 and the Committee on Commerce, Science, and 

8 Transportation of the Senate. 

9 (2) COMMANDANT.—The term ‘‘Commandant’’ 

10 means the Commandant of the Coast Guard. 

11 (3) LEVEL 1 ACQUISITION.—The term ‘‘Level 1 

12 acquisition’’ means— 

13 (A) an acquisition by the Coast Guard— 

14 (i) the estimated life-cycle costs of 

15 which exceed $1,000,000,000; or 


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1 (ii) the estimated total acquisition 

2 costs of which exceed $300,000,000; or 

3 (B) any acquisition that the Chief Acquisi4 tion Officer of the Coast Guard determines to 

5 have a special interest— 

6 (i) due to— 

7 (I) the experimental or tech8 nically immature nature of the asset; 

9 (II) the technological complexity 

10 of the asset; 

11 (III) the commitment of re12 sources; or 

13 (IV) the nature of the capability 

14 or set of capabilities to be achieved; or 

15 (ii) because such acquisition is a joint 

16 acquisition. 

17 (4) LEVEL 2 ACQUISITION.—The term ‘‘Level 2 

18 acquisition’’ means an acquisition by the Coast 

19 Guard— 

20 (A) the estimated life-cycle costs of which 

21 are equal to or less than $1,000,000,000, but 

22 greater than $300,000,000; or 

23 (B) the estimated total acquisition costs of 

24 which are equal to or less than $300,000,0000, 

25 but greater than $100,000,000. 


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1 (5) LIFE-CYCLE COST.—The term ‘‘life-cycle 

2 cost’’ means all costs for development, procurement, 

3 construction, and operations and support for a par4 ticular capability or asset, without regard to funding 

5 source or management control. 

6 TITLE I—RESTRICTIONS ON THE 

7 USE OF LEAD SYSTEMS INTE8 GRATORS 

9 SEC. 101. PROCUREMENT STRUCTURE. 

10 (a) IN GENERAL.— 

11 (1) USE OF LEAD SYSTEMS INTEGRATOR.—Ex12 cept as provided in subsection (b), the Commandant 

13 may not use a private sector entity as a lead systems 

14 integrator for an acquisition contract awarded or de15 livery order or task order issued after the end of the 

16 180-day period beginning on the date of enactment 

17 of this Act. 

18 (2) FULL AND OPEN COMPETITION.—The Com19 mandant and any lead systems integrator engaged 

20 by the Coast Guard shall use full and open competi21 tion for any acquisition contract awarded after the 

22 date of enactment of this Act, unless otherwise ex23 cepted in accordance with Federal acquisition laws 

24 and regulations promulgated under those laws, in25 cluding the Federal Acquisition Regulation. 


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1 (3) NO EFFECT ON SMALL BUSINESS ACT.— 

2 Nothing in this subsection shall be construed to su3 persede or otherwise affect the authorities provided 

4 by and under the Small Business Act (15 U.S.C. 

5 631 et seq.). 

6 (b) EXCEPTIONS.— 

7 (1) NATIONAL DISTRESS AND RESPONSE SYS8 TEM MODERNIZATION PROGRAM; NATIONAL SECU9 RITY CUTTERS 2 AND 3.—Notwithstanding sub10 sections (a) and (e), the Commandant may use a 

11 private sector entity as a lead systems integrator for 

12 the Coast Guard to complete the National Distress 

13 and Response System Modernization Program (oth14 erwise known as the ‘‘Rescue 21’’ program) and Na15 tional Security Cutters 2 and 3. 

16 (2) COMPLETION OF ACQUISITION BY LEAD

17 SYSTEMS INTEGRATOR.—Notwithstanding subsection 

18 (a), the Commandant may use a private sector enti19 ty as a lead systems integrator for the Coast 

20 Guard— 

21 (A) to complete any delivery order or task 

22 order, including the exercise of previously estab23 lished options on a delivery order or task order 

24 that was issued to a lead systems integrator on 

25 or before the date that is 180 days after the 


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1 date of enactment of this Act without any 

2 change in the quantity of capabilities or assets 

3 or the specific type of capabilities or assets cov4 ered by the order; 

5 (B) for a contract awarded after the date 

6 that is 180 days after the date of enactment of 

7 this Act for acquisition of, or in support of, the 

8 HC–130J aircraft, the HH–65 aircraft, or the 

9 C4ISR system, if the requirements of sub10 section (c) are met with respect to such acquisi11 tions; 

12 (C) for a contract awarded after the date 

13 that is 180 days after the date of enactment of 

14 this Act for acquisition of, or in support of, 

15 Maritime Patrol Aircraft, if the requirements of 

16 subsection (c) are met with respect to such an 

17 acquisition; and 

18 (D) for the acquisition of, or in support of, 

19 additional National Security Cutters or Mari20 time Patrol Aircraft, if the Commandant deter21 mines that— 

22 (i) the acquisition is in accordance 

23 with Federal acquisition laws and regula24 tions promulgated under those laws, inVerDate Nov 24 2008 02:14 Mar 24, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1665.IH H1665

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1 cluding the Federal Acquisition Regula2 tion; 

3 (ii) the acquisition and the use of a 

4 private sector entity as a lead systems inte5 grator for the acquisition are in the best 

6 interest of the Federal Government; and 

7 (iii) the requirements of subsection (c) 

8 are met with respect to such acquisition. 

9 (3) REPORT ON DECISION-MAKING PROCESS.— 

10 If the Commandant determines under subparagraph 

11 (B), (C), or (D) of subsection (b)(2) that the Coast 

12 Guard will use a private sector lead systems inte13 grator for an acquisition, the Commandant shall no14 tify in writing the appropriate congressional commit15 tees of the Commandant’s determination and shall 

16 provide a detailed rationale for the determination, at 

17 least 30 days before the award of a contract or 

18 issuance of a delivery order or task order, using a 

19 private sector lead systems integrator, including a 

20 comparison of the cost of the acquisition through the 

21 private sector lead systems integrator with the ex22 pected cost if the acquisition were awarded directly 

23 to the manufacturer or shipyard. For purposes of 

24 that comparison, the cost of award directly to a 


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1 manufacturer or shipyard shall include the costs of 

2 Government contract management and oversight. 

3 (c) LIMITATION ON LEAD SYSTEMS INTEGRATORS.— 

4 Neither an entity performing lead systems integrator func5 tions for a Coast Guard acquisition nor a Tier 1 subcon6 tractor for any acquisition described in subparagraph (B), 

7 (C), or (D) of subsection (b)(2) may have a financial inter8 est in a subcontractor below the Tier 1 subcontractor level 

9 unless— 

10 (1) the subcontractor was selected by the prime 

11 contractor through full and open competition for 

12 such procurement; 

13 (2) the procurement was awarded by the lead 

14 systems integrator or a subcontractor through full 

15 and open competition; 

16 (3) the procurement was awarded by a subcon17 tractor through a process over which the lead sys18 tems integrator or a Tier 1 subcontractor exercised 

19 no control; or 

20 (4) the Commandant has determined that the 

21 procurement was awarded in a manner consistent 

22 with Federal acquisition laws and regulations pro23 mulgated under those laws, including the Federal 

24 Acquisition Regulation. 


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1 (d) RULE OF CONSTRUCTION.—The limitation in 

2 subsection (b)(1)(A) on the quantity and specific type of 

3 assets to which subsection (b) applies shall not be con4 strued to apply to the modification of the number or type 

5 of any sub-systems or other components of a vessel or air6 craft described in subparagraph (B), (C), or (D) of sub7 section (b)(2). 

8 (e) TERMINATION DATE FOR EXCEPTIONS.—Except 

9 as described in subsection (b)(1), the Commandant may 

10 not use a private sector entity as a lead systems integrator 

11 for acquisition contracts awarded, or task orders or deliv12 ery orders issued, after the earlier of— 

13 (1) September 30, 2011; or 

14 (2) the date on which the Commandant certifies 

15 in writing to the appropriate congressional commit16 tees that the Coast Guard has available and can re17 tain sufficient acquisition workforce personnel and 

18 expertise within the Coast Guard, through an ar19 rangement with other Federal agencies, or through 

20 contracts or other arrangements with private sector 

21 entities, to perform the functions and responsibilities 

22 of the lead systems integrator in an efficient and 

23 cost-effective manner. 


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1 TITLE II—COAST GUARD 

2 ACQUISITION POLICY 

3 SEC. 201. OPERATIONAL REQUIREMENTS. 

4 (a) IN GENERAL.—No Level 1 or Level 2 acquisition 

5 program may be initiated by the Coast Guard, and no pro6 duction contract may be awarded for such an acquisition, 

7 unless the Commandant has approved an operational re8 quirement for such acquisition. 

9 (b) OPERATIONAL REQUIREMENT FOR ACQUISITION

10 PROGRAMS.— 

11 (1) IN GENERAL.—The Commandant shall es12 tablish mature and stable operational requirements 

13 for acquisition programs. 

14 (2) ELEMENTS.—Prior to establishing oper15 ational requirements under paragraph (1), the Com16 mandant shall— 

17 (A) prepare a preliminary statement of 

18 need, a concept of operations, an analysis of al19 ternatives or the equivalent, an estimate of life20 cycle costs, and requirements for interoper21 ability with other capabilities and assets within 

22 and external to the Coast Guard; and 

23 (B) in preparing the concept of operations 

24 under subparagraph (A), coordinate with acqui25 sition and support professionals, requirements 


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1 officials, operational users and maintainers, and 

2 resource officials who can ensure the appro3 priate consideration of performance, cost, 

4 schedule and risk trade-offs. 

5 (c) CONSIDERATION OF TRADE-OFFS.—In estab6 lishing operational requirements under subsection (a), the 

7 Commandant shall develop and implement mechanisms to 

8 ensure that trade-offs among performance, cost, schedule, 

9 and risk are considered in the establishment of operational 

10 requirements for development and production of a Level 

11 1 or Level 2 acquisition. 

12 (d) ELEMENTS.—The mechanisms required under 

13 this section shall ensure at a minimum that Coast Guard 

14 officials responsible for acquisition management, budget, 

15 and cost estimating functions have the authority to de16 velop cost estimates and raise cost and schedule matters 

17 at any point in the process of establishing operational re18 quirements for a Level 1 or Level 2 acquisition. 

19 SEC. 202. REQUIRED CONTRACT TERMS. 

20 (a) IN GENERAL.—The Commandant shall ensure 

21 that a contract awarded or a delivery order or task order 

22 issued for an acquisition of a capability or an asset with 

23 an expected service life of 10 years and with a total acqui24 sition cost that is equal to or exceeds $10,000,000 awardVerDate Nov 24 2008 02:14 Mar 24, 2009 Jkt 079200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1665.IH H1665

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1 ed or issued by the Coast Guard after the date of enact2 ment of this Act— 

3 (1) provides that all certifications for an end4 state capability or asset under such contract, deliv5 ery order, or task order, respectively, will be con6 ducted by the Commandant or an independent third 

7 party, and that self-certification by a contractor or 

8 subcontractor is not allowed; 

9 (2) requires that the Commandant shall main10 tain the authority to establish, approve, and main11 tain technical requirements; 

12 (3) requires that any measurement of con13 tractor and subcontractor performance be based on 

14 the status of all work performed, including the ex15 tent to which the work performed met all perform16 ance, cost, and schedule requirements; 

17 (4) specifies that, for the acquisition or upgrade 

18 of air, surface, or shore capabilities and assets for 

19 which compliance with TEMPEST certification is a 

20 requirement, the standard for determining such com21 pliance will be the air, surface, or shore standard 

22 then used by the Department of the Navy for that 

23 type of capability or asset; and 

24 (5) for any contract awarded to acquire an Off25 shore Patrol Cutter, includes provisions specifying 


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1 the service life, fatigue life, and days underway in 

2 general Atlantic and North Pacific Sea conditions, 

3 maximum range, and maximum speed the cutter will 

4 be built to achieve. 

5 (b) PROHIBITED CONTRACT PROVISIONS.—The Com6 mandant shall ensure that any contract awarded or deliv7 ery order or task order issued by the Coast Guard after 

8 the date of enactment of this Act does not include any 

9 provision allowing for equitable adjustment that differs 

10 from the Federal Acquisition Regulation. 

11 (c) EXTENSION OF PROGRAM.—Any contract, con12 tract modification, or award term extending a contract 

13 with a lead systems integrator— 

14 (1) shall not include any minimum require15 ments for the purchase of a given or determinable 

16 number of specific capabilities or assets; and 

17 (2) shall be reviewed by an independent third 

18 party with expertise in acquisition management, and 

19 the results of that review shall be submitted to the 

20 appropriate congressional committees at least 60 

21 days prior to the award of the contract, contract 

22 modification, or award term. 

23 SEC. 203. LIFE-CYCLE COST ESTIMATES. 

24 (a) IN GENERAL.—The Commandant shall imple25 ment mechanisms to ensure the development and regular 


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1 updating of life-cycle cost estimates for each acquisition 

2 with a total acquisition cost that equals or exceeds 

3 $10,000,000 and an expected service life of 10 years, and 

4 to ensure that these estimates are considered in decisions 

5 to develop or produce new or enhanced capabilities and 

6 assets. 

7 (b) TYPES OF ESTIMATES.—In addition to life-cycle 

8 cost estimates that may be developed by acquisition pro9 gram offices, the Commandant shall require that an inde10 pendent life-cycle cost estimate be developed for each 

11 Level 1 or Level 2 acquisition program or project. 

12 (c) REQUIRED UPDATES.—For each Level 1 or Level 

13 2 acquisition program or project the Commandant shall 

14 require that life-cycle cost estimates shall be updated be15 fore each milestone decision is concluded and the program 

16 or project enters a new acquisition phase. 

17 SEC. 204. TEST AND EVALUATION. 

18 (a) TEST AND EVALUATION MASTER PLAN.— 

19 (1) IN GENERAL.—For any Level 1 or Level 2 

20 acquisition program or project the Coast Guard 

21 Chief Acquisition Officer must approve a Test and 

22 Evaluation Master Plan specific to the acquisition 

23 program or project for the capability, asset, or sub24 systems of the capability or asset and intended to 

25 minimize technical, cost, and schedule risk as early 


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1 as practicable in the development of the program or 

2 project. 

3 (2) TEST AND EVALUATION STRATEGY.—The 

4 TEMP shall— 

5 (A) set forth an integrated test and evalua6 tion strategy that will verify that capability-level 

7 or asset-level and sub-system-level design and 

8 development, including performance and 

9 supportability, have been sufficiently proven be10 fore the capability, asset, or sub-system of the 

11 capability or asset is approved for production; 

12 and 

13 (B) require that adequate developmental 

14 tests and evaluations and operational tests and 

15 evaluations established under subparagraph (A) 

16 are performed to inform production decisions. 

17 (3) OTHER COMPONENTS OF TEMP.—At a min18 imum, the TEMP shall identify— 

19 (A) the key performance parameters to be 

20 resolved through the integrated test and evalua21 tion strategy; 

22 (B) critical operational issues to be as23 sessed in addition to the key performance pa24 rameters; 


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1 (C) specific development test and evalua2 tion phases and the scope of each phase; 

3 (D) modeling and simulation activities to 

4 be performed, if any, and the scope of such ac5 tivities; 

6 (E) early operational assessments to be 

7 performed, if any, and the scope of such assess8 ments; 

9 (F) operational test and evaluation phases; 

10 (G) an estimate of the resources, including 

11 funds, that will be required for all test, evalua12 tion, assessment, modeling, and simulation ac13 tivities; and 

14 (H) the Government entity or independent 

15 entity that will perform the test, evaluation, as16 sessment, modeling, and simulation activities. 

17 (4) UPDATE.—The Coast Guard Chief Acquisi18 tion Officer shall approve an updated TEMP when19 ever there is a revision to program or project test 

20 and evaluation strategy, scope, or phasing. 

21 (5) LIMITATION.—The Coast Guard may not— 

22 (A) proceed past that phase of the acquisi23 tion process that entails approving the sup24 porting acquisition of a capability or asset beVerDate Nov 24 2008 02:14 Mar 24, 2009 Jkt 079200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H1665.IH H1665

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1 fore the TEMP is approved by the Coast Guard 

2 Chief Acquisition Officer; or 

3 (B) award any production contract for a 

4 capability, asset, or sub-system for which a 

5 TEMP is required under this subsection before 

6 the TEMP is approved by the Coast Guard 

7 Chief Acquisition Officer. 

8 (b) TESTS AND EVALUATIONS.— 

9 (1) IN GENERAL.—The Commandant shall en10 sure that the Coast Guard conducts developmental 

11 tests and evaluations and operational tests and eval12 uations of a capability or asset and the sub-systems 

13 of the capability or asset for which a TEMP has 

14 been prepared under subsection (a). 

15 (2) USE OF THIRD PARTIES.—The Com16 mandant shall ensure that the Coast Guard uses 

17 third parties with expertise in testing and evaluating 

18 the capabilities or assets and the sub-systems of the 

19 capabilities or assets being acquired to conduct de20 velopmental tests and evaluations and operational 

21 tests and evaluations whenever the Coast Guard 

22 lacks the capability to conduct the tests and evalua23 tions required by a TEMP. 

24 (3) COMMUNICATION OF SAFETY CONCERNS.— 

25 The Commandant shall require that safety concerns 


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1 identified during developmental or operational tests 

2 and evaluations or through independent or Govern3 ment-conducted design assessments of capabilities or 

4 assets and sub-systems of capabilities or assets to be 

5 acquired by the Coast Guard shall be communicated 

6 as soon as practicable, but not later than 30 days 

7 after the completion of the test or assessment event 

8 or activity that identified the safety concern, to the 

9 program manager for the capability or asset and the 

10 sub-systems concerned and to the Coast Guard Chief 

11 Acquisition Officer. 

12 (4) REPORTING OF SAFETY CONCERNS.—Any 

13 safety concerns that have been reported to the Chief 

14 Acquisition Officer for an acquisition program or 

15 project shall be reported by the Commandant to the 

16 appropriate congressional committees at least 90 

17 days before the award of any contract or issuance of 

18 any delivery order or task order for low, initial, or 

19 full-rate production of the capability or asset con20 cerned if they will remain uncorrected or unmiti21 gated at the time such a contract is awarded or de22 livery order or task order is issued. The report shall 

23 include a justification for the approval of that level 

24 of production of the capability or asset before the 

25 safety concern is corrected or mitigated. The report 


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1 shall also include an explanation of the actions that 

2 will be taken to correct or mitigate the safety con3 cern, the date by which those actions will be taken, 

4 and the adequacy of current funding to correct or 

5 mitigate the safety concern. 

6 (5) ASSET ALREADY IN LOW, INITIAL, OR FULL7 RATE PRODUCTION.—If operational test and evalua8 tion on a capability or asset already in low, initial, 

9 or full-rate production identifies a safety concern 

10 with the capability or asset or any sub-systems of 

11 the capability or asset not previously identified dur12 ing developmental or operational test and evaluation, 

13 the Commandant shall— 

14 (A) notify the program manager and the 

15 Chief Acquisition Officer of the safety concern 

16 as soon as practicable, but not later than 30 

17 days after the completion of the test and eval18 uation event or activity that identified the safe19 ty concern; and 

20 (B) notify the appropriate congressional 

21 Committee of the safety concern not later than 

22 30 days after notification is made to the pro23 gram manager and Chief Acquisition Officer, 

24 and include in such notification— 


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1 (i) an explanation of the actions that 

2 will be taken to correct or mitigate the 

3 safety concern in all capabilities or assets 

4 and sub-systems of the capabilities or as5 sets yet to be produced, and the date by 

6 which those actions will be taken; 

7 (ii) an explanation of the actions that 

8 will be taken to correct or mitigate the 

9 safety concern in previously produced ca10 pabilities or assets and sub-systems of the 

11 capabilities or assets, and the date by 

12 which those actions will be taken; and 

13 (iii) an assessment of the adequacy of 

14 current funding to correct or mitigate the 

15 safety concern in capabilities or assets and 

16 sub-systems of the capabilities or assets 

17 and in previously produced capabilities or 

18 assets and sub-systems. 

19 (c) DEFINITIONS.—In this section: 

20 (1) DEVELOPMENTAL TEST AND EVALUA21 TION.—The term ‘‘developmental test and evalua22 tion’’ means— 

23 (A) the testing of a capability or asset and 

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1 formance requirements, including technical per2 formance requirements, supportability require3 ments, and interoperability requirements and 

4 related specifications; and 

5 (B) the evaluation of the results of such 

6 testing. 

7 (2) OPERATIONAL TEST AND EVALUATION.— 

8 The term ‘‘operational test and evaluation’’ means— 

9 (A) the testing of a capability or asset and 

10 the sub-systems of the capability or asset, 

11 under conditions similar to those in which the 

12 capability or asset and subsystems will actually 

13 be deployed, for the purpose of determining the 

14 effectiveness and suitability of the capability or 

15 asset and sub-systems for use by typical Coast 

16 Guard users to conduct those missions for 

17 which the capability or asset and sub-systems 

18 are intended to be used; and 

19 (B) the evaluation of the results of such 

20 testing. 

21 (3) SAFETY CONCERN.—The term ‘‘safety con22 cern’’ means any hazard associated with a capability 

23 or asset or a sub-system of a capability or asset that 

24 is likely to cause serious bodily injury or death to a 

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1 pairing, or operating the capability, asset, or sub2 system or any hazard associated with the capability, 

3 asset, or sub-system that is likely to cause major 

4 damage to the capability, asset, or sub-system dur5 ing the course of its normal operation by a typical 

6 Coast Guard user. 

7 (4) TEMP.—The term ‘‘TEMP’’ means a Test 

8 and Evaluation Master Plan for which approval is 

9 required under this section. 

10 SEC. 205. CAPABILITY STANDARDS. 

11 (a) CUTTER CLASSIFICATION.—The Commandant 

12 shall cause each cutter, other than a National Security 

13 Cutter, acquired by the Coast Guard and delivered after 

14 the date of enactment of this Act to be classed by the 

15 American Bureau of Shipping before final acceptance. 

16 (b) TEMPEST TESTING.—The Commandant shall— 

17 (1) cause all electronics on all aircraft, surface, 

18 and shore capabilities and assets that require TEM19 PEST certification and that are delivered after the 

20 date of enactment of this Act to be tested in accord21 ance with TEMPEST standards and communication 

22 security (COMSEC) standards by an independent 

23 third party that is authorized by the Federal Gov24 ernment to perform such testing; and 


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1 (2) certify that the capabilities and assets meet 

2 all applicable TEMPEST requirements. 

3 (c) NATIONAL SECURITY CUTTERS.— 

4 (1) NATIONAL SECURITY CUTTERS 1 AND 2.— 

5 Not later than 90 days before the Coast Guard 

6 awards any contract or issues any delivery order or 

7 task order to strengthen the hull of either of Na8 tional Security Cutter 1 or 2 to resolve the struc9 tural design and performance issues identified in the 

10 Department of Homeland Security Inspector Gen11 eral’s report OIG–07–23 dated January 2007, the 

12 Commandant shall submit to the appropriate con13 gressional committees all results of an assessment of 

14 the proposed hull strengthening design conducted by 

15 the Coast Guard, including— 

16 (A) a description in detail of the extent to 

17 which the hull strengthening measures to be im18 plemented on those cutters will enable the cut19 ters to meet contract and performance require20 ments; 

21 (B) a cost benefit analysis of the proposed 

22 hull strengthening measures for National Secu23 rity Cutters 1 and 2; and 

24 (C) a description of any operational re25 strictions that would have to be applied to eiVerDate Nov 24 2008 02:14 Mar 24, 2009 Jkt 079200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H1665.IH H1665

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1 ther National Security Cutters 1 or 2 if the 

2 proposed hull strengthening measures were not 

3 implemented on either cutter. 

4 (2) OTHER VESSELS.—The Commandant shall 

5 cause the design and construction of each National 

6 Security Cutter, other than National Security Cut7 ters 1, 2, and 3, to be assessed by an independent 

8 third party with expertise in vessel design and con9 struction certification. 

10 (d) AIRCRAFT AIRWORTHINESS.—The Commandant 

11 shall cause all aircraft and aircraft engines acquired by 

12 the Coast Guard and delivered after the date of enactment 

13 of this Act to be assessed for airworthiness by an inde14 pendent third party with expertise in aircraft and aircraft 

15 engine certification, before final acceptance. 

16 SEC. 206. ACQUISITION PROGRAM REPORTS. 

17 Any Coast Guard Level 1 or Level 2 acquisition pro18 gram or project may not begin to obtain any capability 

19 or asset or proceed beyond that phase of its development 

20 that entails approving the supporting acquisition until the 

21 Commandant submits to the appropriate congressional 

22 committees the following: 

23 (1) The key performance parameters, the key 

24 system attributes, and the operational performance 

25 attributes of the capability and asset to be acquired 


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1 under the proposed acquisition program or project 

2 will be built to achieve. 

3 (2) A detailed list of the systems or other capa4 bilities with which the capability or asset to be ac5 quired is intended to be interoperable, including an 

6 explanation of the attributes of interoperability. 

7 (3) The anticipated acquisition program base8 line and acquisition unit cost for the capability or 

9 asset to be produced and deployed under the pro10 gram or project. 

11 (4) A detailed schedule for the acquisition proc12 ess showing when all capability and asset acquisi13 tions are to be completed and when all acquired ca14 pabilities and assets are to be initially and fully de15 ployed. 

16 SEC. 207. UNDEFINITIZED CONTRACTUAL ACTIONS. 

17 (a) IN GENERAL.—The Coast Guard may not enter 

18 into an undefinitized contractual action unless such action 

19 is directly approved by the Head of Contracting Activity 

20 of the Coast Guard. 

21 (b) REQUESTS FOR UNDEFINITIZED CONTRACTUAL

22 ACTIONS.—Any request to the Head of Contracting Activ23 ity for approval of an undefinitized contractual action cov24 ered under subsection (a) must include a description of 

25 the anticipated effect on requirements of the Coast Guard 


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1 if a delay is incurred for the purposes of determining con2 tractual terms, specifications, and price before perform3 ance is begun under the contractual action. 

4 (c) REQUIREMENTS FOR UNDEFINITIZED CONTRAC5 TUAL ACTIONS.— 

6 (1) DEADLINE FOR AGREEMENT ON TERMS, 

7 SPECIFICATIONS, AND PRICE.—A contracting officer 

8 of the Coast Guard may not enter into an 

9 undefinitized contractual action unless the contrac10 tual action provides for agreement upon contractual 

11 terms, specification, and price by the earlier of— 

12 (A) the end of the 180-day period begin13 ning on the date on which the contractor sub14 mits a qualifying proposal to definitize the con15 tractual terms, specifications, and price; or 

16 (B) the date on which the amount of funds 

17 obligated under the contractual action is equal 

18 to more than 50 percent of the negotiated over19 all ceiling price for the contractual action. 

20 (2) LIMITATION ON OBLIGATIONS.— 

21 (A) IN GENERAL.—Except as provided in 

22 subparagraph (B), the contracting officer for an 

23 undefinitized contractual action may not obli24 gate under such contractual action an amount 

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1 all ceiling price until the contractual terms, 

2 specifications, and price are definitized for such 

3 contractual action. 

4 (B) EXCEPTION.—Notwithstanding sub5 paragraph (A), if a contractor submits a quali6 fying proposal to definitize an undefinitized 

7 contractual action before an amount that ex8 ceeds 50 percent of the negotiated overall ceil9 ing price is obligated on such action, the con10 tracting officer for such action may not obligate 

11 with respect to such contractual action an 

12 amount that exceeds 75 percent of the nego13 tiated overall ceiling price until the contractual 

14 terms, specifications, and price are definitized 

15 for such contractual action. 

16 (3) WAIVER.—The Commandant may waive the 

17 application of this subsection with respect to a con18 tract if the Commandant determines that the waiver 

19 is necessary to support— 

20 (A) a contingency operation (as that term 

21 is defined in section 101(a)(13) of title 10, 

22 United States Code); 

23 (B) an operation in response to an emer24 gency that poses an unacceptable threat to 


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1 human health or safety or to the marine envi2 ronment; or 

3 (C) an operation in response to a natural 

4 disaster or major disaster or emergency des5 ignated by the President under the Robert T. 

6 Stafford Disaster Relief and Emergency Assist7 ance Act (42 U.S.C. 5121 et seq.). 

8 (4) LIMITATION ON APPLICATION.—This sub9 section does not apply to an undefinitized contrac10 tual action for the purchase of initial spares. 

11 (d) INCLUSION OF NONURGENT REQUIREMENTS.— 

12 Requirements for spare parts and support equipment that 

13 are not needed on an urgent basis may not be included 

14 in an undefinitized contractual action by the Coast Guard 

15 for spare parts and support equipment that are needed 

16 on an urgent basis unless the Commandant approves such 

17 inclusion as being— 

18 (1) good business practice; and 

19 (2) in the best interests of the United States. 

20 (e) MODIFICATION OF SCOPE.—The scope of an 

21 undefinitized contractual action under which performance 

22 has begun may not be modified unless the Commandant 

23 approves such modification as being— 

24 (1) good business practice; and 

25 (2) in the best interests of the United States. 


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1 (f) ALLOWABLE PROFIT.—The Commandant shall 

2 ensure that the profit allowed on an undefinitized contrac3 tual action for which the final price is negotiated after 

4 a substantial portion of the performance required is com5 pleted reflects— 

6 (1) the possible reduced cost risk of the con7 tractor with respect to costs incurred during per8 formance of the contract before the final price is ne9 gotiated; and 

10 (2) the reduced cost risk of the contractor with 

11 respect to costs incurred during performance of the 

12 remaining portion of the contract. 

13 (g) DEFINITIONS.—In this section: 

14 (1) UNDEFINITIZED CONTRACTUAL ACTION.— 

15 (A) IN GENERAL.—Except as provided in 

16 subparagraph (B), the term ‘‘undefinitized con17 tractual action’’ means a new procurement ac18 tion entered into by the Coast Guard for which 

19 the contractual terms, specifications, or price 

20 are not agreed upon before performance is 

21 begun under the action. 

22 (B) EXCLUSION.—Such term does not in23 clude contractual actions with respect to the fol24 lowing: 

25 (i) Foreign military sales. 


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1 (ii) Purchases in an amount not in ex2 cess of the amount of the simplified acqui3 sition threshold. 

4 (iii) Special access programs. 

5 (2) QUALIFYING PROPOSAL.—The term ‘‘quali6 fying proposal’’ means a proposal that contains suf7 ficient information to enable complete and meaning8 ful audits of the information contained in the pro9 posal as determined by the contracting officer. 

10 SEC. 208. GUIDANCE ON EXCESSIVE PASS-THROUGH 

11 CHARGES. 

12 (a) IN GENERAL.—Not later than 180 days after the 

13 date of enactment of this Act, the Commandant shall issue 

14 guidance to ensure that pass-through charges on con15 tracts, subcontracts, delivery orders, and task orders that 

16 are entered into with a private entity acting as a lead sys17 tems integrator by or on behalf of the Coast Guard are 

18 not excessive in relation to the cost of work performed by 

19 the relevant contractor or subcontractor. The guidance 

20 shall, at a minimum— 

21 (1) set forth clear standards for determining 

22 when no, or negligible, value has been added to a 

23 contract by a contractor or subcontractor; 


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1 (2) set forth procedures for preventing the pay2 ment by the Government of excessive pass-through 

3 charges; and 

4 (3) identify any exceptions determined by the 

5 Commandant to be in the best interest of the Gov6 ernment. 

7 (b) EXCESSIVE PASS-THROUGH CHARGE DE8 FINED.—In this section the term ‘‘excessive pass-through 

9 charge’’, with respect to a contractor or subcontractor that 

10 adds no, or negligible, value to a contract or subcontract, 

11 means a charge to the Government by the contractor or 

12 subcontractor that is for overhead or profit on work per13 formed by a lower-tier contractor or subcontractor, other 

14 than reasonable charges for the direct costs of managing 

15 lower-tier contractors and subcontracts and overhead and 

16 profit based on such direct costs. 

17 (c) APPLICATION OF GUIDANCE.—The guidance 

18 under this subsection shall apply to contracts awarded to 

19 a private entity acting as a lead systems integrator by or 

20 on behalf of the Coast Guard on or after the date that 

21 is 360 days after the date of enactment of this Act. 

22 SEC. 209. ACQUISITION OF MAJOR CAPABILITIES: ALTER23 NATIVES ANALYSIS. 

24 The Coast Guard may not acquire an experimental 

25 or technically immature capability or asset or implement 


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1 a Level 1 or Level 2 acquisition, unless it has conducted 

2 an alternatives analysis for the capability or asset to be 

3 acquired in the concept and technology development phase 

4 of the acquisition process for the capability or asset. Such 

5 analysis shall be conducted by a federally funded research 

6 and development center, a qualified entity of the Depart7 ment of Defense, or a similar independent third party enti8 ty that has appropriate acquisition expertise. Such alter9 natives analysis shall include— 

10 (1) an assessment of the technical maturity of 

11 the capability or asset and technical and other risks; 

12 (2) an examination of capability, interoper13 ability, and other advantages and disadvantages; 

14 (3) an evaluation of whether different combina15 tions or quantities of specific capabilities or assets 

16 could meet the Coast Guard’s overall performance 

17 needs; 

18 (4) a discussion of key assumptions and vari19 ables, and sensitivity to change in such assumptions 

20 and variables; 

21 (5) when an alternative is an existing capa22 bility, asset, or prototype, an evaluation of relevant 

23 safety and performance records and costs; 

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


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1 (A) an examination of development costs 

2 and the levels of uncertainty associated with 

3 such estimated costs; 

4 (B) an examination of likely production 

5 and deployment costs and the levels of uncer6 tainty associated with such estimated costs; 

7 (C) an examination of likely operating and 

8 support costs and the levels of uncertainty asso9 ciated with such estimated costs; 

10 (D) if they are likely to be significant, an 

11 examination of likely disposal costs and the lev12 els of uncertainty associated with such esti13 mated costs; and 

14 (E) such additional measures the Com15 mandant determines to be necessary for appro16 priate evaluation of the capability or asset; and 

17 (7) the business case for each viable alternative. 

18 SEC. 210. COST OVERRUNS AND DELAYS. 

19 (a) IN GENERAL.—The Commandant shall submit a 

20 report to the appropriate congressional committees as 

21 soon as possible, but not later than 30 days, after the 

22 Chief Acquisition Officer of the Coast Guard becomes 

23 aware of the breach of an acquisition program baseline 

24 for any Level 1 or Level 2 acquisition program, by— 


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1 (1) a likely cost overrun greater than 10 per2 cent of the acquisition program baseline for that in3 dividual capability or asset or a class of capabilities 

4 or assets; 

5 (2) a likely delay of more than 180 days in the 

6 delivery schedule for any individual capability or 

7 asset or class of capabilities or assets; or 

8 (3) an anticipated failure for any individual ca9 pability or asset or class of capabilities or assets to 

10 satisfy any key performance threshold or parameter 

11 under the acquisition program baseline. 

12 (b) CONTENT.—The report submitted under sub13 section (a) shall include— 

14 (1) a detailed description of the breach and an 

15 explanation of its cause; 

16 (2) the projected impact to performance, cost, 

17 and schedule; 

18 (3) an updated acquisition program baseline 

19 and the complete history of changes to the original 

20 acquisition program baseline; 

21 (4) the updated acquisition schedule and the 

22 complete history of changes to the original schedule; 

23 (5) a full life-cycle cost analysis for the capa24 bility or asset or class of capabilities or assets; 


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1 (6) a remediation plan identifying corrective ac2 tions and any resulting issues or risks; and 

3 (7) a description of how progress in the remedi4 ation plan will be measured and monitored. 

5 (c) SUBSTANTIAL VARIANCES IN COSTS OR SCHED6 ULE.—If a likely cost overrun is greater than 20 percent 

7 or a likely delay is greater than 12 months from the costs 

8 and schedule described in the acquisition program baseline 

9 for any Level 1 or Level 2 acquisition program or project 

10 of the Coast Guard, the Commandant shall include in the 

11 report a written certification, with a supporting expla12 nation, that— 

13 (1) the capability or asset or capability or asset 

14 class to be acquired under the program or project is 

15 essential to the accomplishment of Coast Guard mis16 sions; 

17 (2) there are no alternatives to such capability 

18 or asset or capability or asset class which will pro19 vide equal or greater capability in both a more cost20 effective and timely manner; 

21 (3) the new acquisition schedule and estimates 

22 for total acquisition cost are reasonable; and 

23 (4) the management structure for the acquisi24 tion program is adequate to manage and control per25 formance, cost, and schedule. 


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1 SEC. 211. REPORT ON FORMER COAST GUARD OFFICIALS 

2 EMPLOYED BY CONTRACTORS TO THE AGEN3 CY. 

4 (a) REPORT REQUIRED.—Not later than December 

5 31, 2009, and annually thereafter, the Comptroller Gen6 eral of the United States shall submit a report to the ap7 propriate congressional committees on the employment 

8 during the preceding year by Coast Guard contractors of 

9 individuals who were Coast Guard officials in the previous 

10 5-year period. The report shall assess the extent to which 

11 former Coast Guard officials were provided compensation 

12 by Coast Guard contractors in the preceding calendar 

13 year. 

14 (b) OBJECTIVES OF REPORT.—At a minimum, the 

15 report required by this section shall assess the extent to 

16 which former Coast Guard officials who receive compensa17 tion from Coast Guard contractors have been assigned by 

18 those contractors to work on contracts or programs be19 tween the contractor and the Coast Guard, including con20 tracts or programs for which the former official personally 

21 had oversight responsibility or decision-making authority 

22 when they served in or worked for the Coast Guard. 

23 (c) CONFIDENTIALITY REQUIREMENT.—The report 

24 required by this subsection shall not include the names 

25 of the former Coast Guard officials who receive compensa26 tion from Coast Guard contractors. 


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1 (d) ACCESS TO INFORMATION.—A Coast Guard con2 tractor shall provide the Comptroller General access to in3 formation requested by the Comptroller General for the 

4 purpose of conducting the study required by this section. 

5 (e) DEFINITIONS.—In this section: 

6 (1) COAST GUARD CONTRACTOR.—The term 

7 ‘‘Coast Guard contractor’’ includes any person that 

8 received at least $10,000,000 in contractor awards 

9 from the Coast Guard in the calendar year covered 

10 by the annual report. 

11 (2) COAST GUARD OFFICIAL.—The term ‘‘Coast 

12 Guard official’’ includes former officers of the Coast 

13 Guard who were compensated at a rate of pay for 

14 grade O–7 or above during the calendar year prior 

15 to the date on which they separated from the Coast 

16 Guard, and former civilian employees of the Coast 

17 Guard who served at any level of the Senior Execu18 tive Service under subchapter VIII of chapter 53 of 

19 title 5, United States Code, during the calendar year 

20 prior to the date on which they separated from the 

21 Coast Guard. 

22 SEC. 212. DEPARTMENT OF DEFENSE CONSULTATION. 

23 (a) IN GENERAL.—The Commandant shall make ar24 rangements as appropriate with the Secretary of Defense 

25 for support in contracting and management of Coast 


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1 Guard acquisition programs. The Commandant shall also 

2 seek opportunities to make use of Department of Defense 

3 contracts, and contracts of other appropriate agencies, to 

4 obtain the best possible price for capabilities and assets 

5 acquired for the Coast Guard. 

6 (b) INTER-SERVICE TECHNICAL ASSISTANCE.—The 

7 Commandant may enter into a memorandum of under8 standing or a memorandum of agreement with the Sec9 retary of the Navy to obtain the assistance of the Office 

10 of the Assistant Secretary of the Navy for Research, De11 velopment, and Acquisition, including the Navy Systems 

12 Commands, with the oversight of Coast Guard major ac13 quisition programs. Such memorandum of understanding 

14 or memorandum of agreement shall, at a minimum, pro15 vide for— 

16 (1) the exchange of technical assistance and 

17 support that the Coast Guard Chief Acquisition Offi18 cer, Coast Guard Chief Engineer, and the Coast 

19 Guard Chief Information Officer may identify; 

20 (2) the use, as appropriate, of Navy technical 

21 expertise; and 

22 (3) the temporary assignment or exchange of 

23 personnel between the Coast Guard and the Office 

24 of the Assistant Secretary of the Navy for Research, 

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1 tems Commands, to facilitate the development of or2 ganic capabilities in the Coast Guard. 

3 (c) TECHNICAL REQUIREMENT APPROVAL PROCE4 DURES.—The Coast Guard Chief Acquisition Officer shall 

5 adopt, to the extent practicable, procedures that are simi6 lar to those used by the senior procurement executive of 

7 the Department of the Navy to approve all technical re8 quirements. 

9 (d) ASSESSMENT.—Within 180 days after the date 

10 of enactment of this Act, the Comptroller General shall 

11 transmit a report to the appropriate congressional com12 mittees that— 

13 (1) contains an assessment of current Coast 

14 Guard acquisition and management capabilities to 

15 manage Level 1 and Level 2 acquisitions; 

16 (2) includes recommendations as to how the 

17 Coast Guard can improve its acquisition manage18 ment, either through internal reforms or by seeking 

19 acquisition expertise from the Department of De20 fense; and 

21 (3) addresses specifically the question of wheth22 er the Coast Guard can better leverage Department 

23 of Defense or other agencies’ contracts that would 

24 meet the needs of Level 1 or Level 2 acquisitions in 

25 order to obtain the best possible price. 


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1 TITLE III—COAST GUARD 

2 PERSONNEL 

3 SEC. 301. CHIEF ACQUISITION OFFICER. 

4 (a) IN GENERAL.—Chapter 3 of title 14, United 

5 States Code, is amended by adding at the end the fol6 lowing: 

7 ‘‘§ 55. Chief Acquisition Officer 

8 ‘‘(a) ESTABLISHMENT OF CHIEF ACQUISITION OFFI9 CER.—There shall be in the Coast Guard a Chief Acquisi10 tion Officer selected by the Commandant who shall be a 

11 Rear Admiral or civilian from the Senior Executive Service 

12 (career reserved) and who meets the qualifications set 

13 forth under subsection (b). The Chief Acquisition Officer 

14 shall serve at the Assistant Commandant level and have 

15 acquisition management as that individual’s primary duty. 

16 ‘‘(b) QUALIFICATIONS.— 

17 ‘‘(1) The Chief Acquisition Officer and any 

18 Flag Officer serving in the Acquisitions Directorate 

19 shall be an acquisition professional with a program 

20 manager level III certification and must have at 

21 least 10 years experience in an acquisition position, 

22 of which at least 4 years were spent in one of the 

23 following qualifying positions: 

24 ‘‘(A) Program executive officer. 


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1 ‘‘(B) Program manager of a Level 1 or 

2 Level 2 acquisition. 

3 ‘‘(C) Deputy program manager of a Level 

4 1 or Level 2 acquisition. 

5 ‘‘(D) Project manager for a Level 1 or 

6 Level 2 acquisition. 

7 ‘‘(E) Any other acquisition position of sig8 nificant responsibility in which the primary du9 ties are supervisory or management duties. 

10 ‘‘(2) The Commandant shall periodically publish 

11 a list of the positions designated under this sub12 section. 

13 ‘‘(c) AUTHORITY AND FUNCTIONS OF THE CHIEF AC14 QUISITION OFFICER.—The functions of the Chief Acquisi15 tion Officer shall include— 

16 ‘‘(1) monitoring the performance of programs 

17 and projects on the basis of applicable performance 

18 measurements and advising the Commandant, 

19 through the chain of command, regarding the appro20 priate business strategy to achieve the missions of 

21 the Coast Guard; 

22 ‘‘(2) maximizing the use of full and open com23 petition at the prime contract and subcontract levels 

24 in the acquisition of property, capabilities, assets, 

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1 cies, procedures, and practices that ensure that the 

2 Coast Guard receives a sufficient number of sealed 

3 bids or competitive proposals from responsible 

4 sources to fulfill the Government’s requirements, in5 cluding performance and delivery schedules, at the 

6 lowest cost or best value considering the nature of 

7 the property, capability, asset, or service procured; 

8 ‘‘(3) making acquisition decisions in concur9 rence with the technical authority of the Coast 

10 Guard, as designated by the Commandant, and con11 sistent with all other applicable laws and decisions 

12 establishing procedures within the Coast Guard; 

13 ‘‘(4) ensuring the use of detailed performance 

14 specifications in instances in which performance 

15 based contracting is used; 

16 ‘‘(5) managing the direction of acquisition pol17 icy for the Coast Guard, including implementation of 

18 the unique acquisition policies, regulations, and 

19 standards of the Coast Guard; 

20 ‘‘(6) developing and maintaining an acquisition 

21 career management program in the Coast Guard to 

22 ensure that there is an adequate acquisition work23 force; 

24 ‘‘(7) assessing the requirements established for 

25 Coast Guard personnel regarding knowledge and 


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1 skill in acquisition resources and management and 

2 the adequacy of such requirements for facilitating 

3 the achievement of the performance goals established 

4 for acquisition management; 

5 ‘‘(8) developing strategies and specific plans for 

6 hiring, training, and professional development; and 

7 ‘‘(9) reporting to the Commandant, through the 

8 chain of command, on the progress made in improv9 ing acquisition management capability.’’. 

10 (b) APPLICATION OF QUALIFICATION REQUIRE11 MENT.—Section 55(b) of title 46, United States Code, as 

12 amended by this section, shall apply beginning October 1, 

13 2011. 

14 (c) CLERICAL AMENDMENT.—The table of sections 

15 at the beginning of such chapter is amended by adding 

16 at the end the following: 

‘‘55. Chief Acquisition Officer.’’. 

17 (d) ELEVATION OF DISPUTES TO THE CHIEF ACQUI18 SITION OFFICER.—Within 45 days after the elevation to 

19 the Chief Acquisition Officer of any design or other dis20 pute regarding a Level 1 or Level 2 acquisition, the Com21 mandant shall provide to the appropriate congressional 

22 committees a detailed description of the issue and the ra23 tionale underlying the decision taken by the Chief Acquisi24 tion Officer to resolve the issue. 

25 (e) SPECIAL RATE SUPPLEMENTS.— 


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1 (1) REQUIREMENT TO ESTABLISH.—Not later 

2 than 1 year after the date of enactment of this Act 

3 and in accordance with part 9701.333 of title 5, 

4 Code of Federal Regulations, the Commandant shall 

5 establish special rate supplements that provide high6 er pay levels for employees necessary to carry out 

7 the amendment made by this section. 

8 (2) SUBJECT TO APPROPRIATIONS.—The re9 quirement under paragraph (1) is subject to the 

10 availability of appropriations. 

11 SEC. 302. IMPROVEMENTS IN COAST GUARD ACQUISITION 

12 MANAGEMENT. 

13 (a) PROGRAM AND PROJECT MANAGERS.—An indi14 vidual may not be assigned as the program manager for 

15 a Level 1 or Level 2 acquisition unless the individual holds 

16 a Level III acquisition certification as a program manager. 

17 (b) INTEGRATED PRODUCT TEAMS.—Integrated 

18 product teams, and all teams that oversee integrated prod19 uct teams, shall be chaired by officers, members, or em20 ployees of the Coast Guard. 

21 (c) TECHNICAL AUTHORITY.—The Commandant 

22 shall maintain or designate the technical authority to es23 tablish, approve, and maintain technical requirements. 

24 Any such designation shall be made in writing and may 

25 not be delegated to the authority of the Chief Acquisition 


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1 Officer established by section 55 of title 14, United States 

2 Code. 

3 (d) DESIGNATION OF POSITIONS IN THE ACQUISI4 TION WORKFORCE.— 

5 (1) IN GENERAL.—The Commandant shall des6 ignate a sufficient number of positions to be in the 

7 Coast Guard’s acquisition workforce to perform ac8 quisition-related functions at Coast Guard head9 quarters and field activities. 

10 (2) REQUIRED POSITIONS.—In designating po11 sitions under subsection (a), the Commandant shall 

12 include, at a minimum, positions encompassing the 

13 following competencies and functions: 

14 (A) Program management. 

15 (B) Systems planning, research, develop16 ment, engineering, and testing. 

17 (C) Procurement, including contracting. 

18 (D) Industrial and contract property man19 agement. 

20 (E) Life-cycle logistics. 

21 (F) Quality control and assurance. 

22 (G) Manufacturing and production. 

23 (H) Business, cost estimating, financial 

24 management, and auditing. 


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1 (I) Acquisition education, training, and ca2 reer development. 

3 (J) Construction and facilities engineering. 

4 (K) Testing and evaluation. 

5 (3) ACQUISITION MANAGEMENT HEADQUARTER

6 ACTIVITIES.—The Commandant shall also designate 

7 as positions in the acquisition workforce under para8 graph (1) those acquisition-related positions located 

9 at Coast Guard headquarters units. 

10 (4) APPROPRIATE EXPERTISE REQUIRED.—The 

11 Commandant shall ensure that each individual as12 signed to a position in the acquisition workforce has 

13 the appropriate expertise to carry out the respon14 sibilities of that position. 

15 (e) MANAGEMENT INFORMATION SYSTEM.— 

16 (1) IN GENERAL.—The Commandant shall es17 tablish a management information system capability 

18 to improve acquisition workforce management and 

19 reporting. 

20 (2) INFORMATION MAINTAINED.—Information 

21 maintained with such capability shall include the fol22 lowing standardized information on individuals as23 signed to positions in the workforce: 

24 (A) Qualifications, assignment history, and 

25 tenure of those individuals assigned to positions 


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1 in the acquisition workforce or holding acquisi2 tion-related certifications. 

3 (B) Promotion rates for officers and mem4 bers of the Coast Guard in the acquisition 

5 workforce. 

6 (f) REPORT ON ADEQUACY OF ACQUISITION WORK7 FORCE.— 

8 (1) IN GENERAL.—The Commandant shall re9 port to the appropriate congressional committees by 

10 July 1 of each year on the scope of the acquisition 

11 activities to be performed in the next fiscal year and 

12 on the adequacy of the current acquisition workforce 

13 to meet that anticipated workload. 

14 (2) CONTENTS.—The report shall— 

15 (A) specify the number of officers, mem16 bers, and employees of the Coast Guard cur17 rently and planned to be assigned to each posi18 tion designated under subsection (d); and 

19 (B) identify positions that are understaffed 

20 to meet the anticipated acquisition workload, 

21 and actions that will be taken to correct such 

22 understaffing. 

23 (g) APPOINTMENTS TO ACQUISITION POSITIONS.— 

24 The Commandant shall ensure that no requirement or 

25 preference for officers or members of the Coast Guard is 


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1 used in the consideration of persons for positions in the 

2 acquisition workforce. 

3 (h) CAREER PATHS.— 

4 (1) IDENTIFICATION OF CAREER PATHS.—To 

5 establish acquisition management as a core com6 petency of the Coast Guard, the Commandant 

7 shall— 

8 (A) ensure that career paths for officers, 

9 members, and employees of the Coast Guard 

10 who wish to pursue careers in acquisition are 

11 identified in terms of the education, training, 

12 experience, and assignments necessary for ca13 reer progression of those officers, members, and 

14 employees to the most senior positions in the 

15 acquisition workforce; and 

16 (B) publish information on such career 

17 paths. 

18 (2) PROMOTION PARITY.—The Commandant 

19 shall ensure that promotion parity is established for 

20 officers and members of the Coast Guard who have 

21 been assigned to the acquisition workforce relative to 

22 officers and members who have not been assigned to 

23 the acquisition workforce. 

24 (i) BALANCED WORKFORCE POLICY.—In the devel25 opment of acquisition workforce policies under this section 


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1 with respect to any civilian employees or applicants for 

2 employment, the Commandant shall, consistent with the 

3 merit system principles set out in paragraphs (1) and (2) 

4 of section 2301(b) of title 5, United States Code, take into 

5 consideration the need to maintain a balanced workforce 

6 in which women and members of racial and ethnic minor7 ity groups are appropriately represented in Government 

8 service. 

9 (j) GUIDANCE ON TENURE AND ACCOUNTABILITY OF

10 PROGRAM MANAGERS.— 

11 (1) ISSUANCE OF GUIDANCE.—Not later than 

12 one year after the date of enactment of this Act, the 

13 Commandant shall issue guidance to address the 

14 qualifications, resources, responsibilities, tenure, and 

15 accountability of program managers for the manage16 ment of acquisition programs and projects. The 

17 guidance shall address, at a minimum— 

18 (A) the qualifications that shall be required 

19 of program managers, including the number of 

20 years of acquisition experience and the profes21 sional training levels to be required of those ap22 pointed to program management positions; 

23 (B) authorities available to program man24 agers, including, to the extent appropriate, the 

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1 gram requirements that would be inconsistent 

2 with the parameters established for an acquisi3 tion program; and 

4 (C) the extent to which a program man5 ager who initiates a new program or project will 

6 continue in management of that program or 

7 project without interruption until the delivery of 

8 the first production units of the program. 

9 (2) STRATEGY.— 

10 (A) IN GENERAL.—Not later than 18 

11 months after the date of enactment of this Act, 

12 the Commandant shall develop a comprehensive 

13 strategy for enhancing the role of Coast Guard 

14 program managers in developing and carrying 

15 out acquisition programs. 

16 (B) MATTERS TO BE ADDRESSED.—The 

17 strategy required by this section shall address, 

18 at a minimum— 

19 (i) the creation of a specific career 

20 path and career opportunities for individ21 uals who are or may become program man22 agers, including the rotational assignments 

23 that will be provided to program managers; 

24 (ii) the provision of enhanced training 

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1 uals who are or may become program man2 agers; 

3 (iii) the provision of mentoring sup4 port to current and future program man5 agers by experienced senior executives and 

6 program managers within the Coast 

7 Guard, and through rotational assignments 

8 to the Department of Defense; 

9 (iv) the methods by which the Coast 

10 Guard will collect and disseminate best 

11 practices and lessons learned on systems 

12 acquisition to enhance program manage13 ment throughout the Coast Guard; 

14 (v) the templates and tools that will 

15 be used to support improved data gath16 ering and analysis for program manage17 ment and oversight purposes, including the 

18 metrics that will be utilized to assess the 

19 effectiveness of Coast Guard program 

20 managers in managing systems acquisition 

21 efforts; 

22 (vi) a description in detail of how the 

23 Coast Guard will promote a balanced work24 force in which women and members of ra25 cial and ethnic minority groups are approVerDate Nov 24 2008 02:14 Mar 24, 2009 Jkt 079200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\H1665.IH H1665

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1 priately represented in Government service; 

2 and 

3 (vii) the methods by which the ac4 countability of program managers for the 

5 results of acquisition programs will be in6 creased. 

7 (3) REPORT BY COMPTROLLER GENERAL.—Not 

8 later than 2 years after the date of enactment of 

9 this Act, the Comptroller General of the United 

10 States shall submit to the appropriate congressional 

11 committees a report on the actions taken by the 

12 Commandant to implement the requirements of this 

13 subsection, including the strategies that are required 

14 to be developed by this subsection. 

15 SEC. 303. RECOGNITION OF COAST GUARD PERSONNEL 

16 FOR EXCELLENCE IN ACQUISITION. 

17 (a) IN GENERAL.—Not later than 180 days after the 

18 date of enactment of this Act, the Commandant shall com19 mence implementation of a program to recognize excellent 

20 performance by individuals and teams comprised of offi21 cers, members, and employees of the Coast Guard that 

22 contributed to the long-term success of a Coast Guard ac23 quisition program or project. 

24 (b) ELEMENTS.—The program required by sub25 section (a) shall include the following: 


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1 (1) Specific award categories, criteria, and eligi2 bility and manners of recognition. 

3 (2) Procedures for the nomination by personnel 

4 of the Coast Guard of individuals and teams com5 prised of officers, members, and employees of the 

6 Coast Guard for recognition under the program. 

7 (3) Procedures for the evaluation of nomina8 tions for recognition under the program by one or 

9 more panels of individuals from the Government, 

10 academia, and the private sector who have such ex11 pertise and are appointed in such manner as the 

12 Commandant shall establish for the purposes of this 

13 program. 

14 (c) AWARD OF CASH BONUSES.—As part of the pro15 gram required by subsection (a), the Commandant, sub16 ject to the availability of appropriations, may award to any 

17 individual recognized pursuant to the program a cash 

18 bonus to the extent that the performance of such indi19 vidual so recognized warrants the award of such bonus. 

20 SEC. 304. ENHANCED STATUS QUO OFFICER PROMOTION 

21 SYSTEM. 

22 Chapter 11 of title 14, United States Code, is amend23 ed— 

24 (1) in section 253(a)— 


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1 (A) by inserting ‘‘and’’ after ‘‘considered,’’; 

2 and 

3 (B) by striking ‘‘, and the number of offi4 cers the board may recommend for promotion’’; 

5 (2) in section 258— 

6 (A) by inserting ‘‘(a) IN GENERAL.—’’ be7 fore the existing text; 

8 (B) in subsection (a) (as so designated) by 

9 striking the colon at the end of the material 

10 preceding paragraph (1) and inserting ‘‘—’’; 

11 and 

12 (C) by adding at the end the following: 

13 ‘‘(b) PROVISION OF DIRECTION AND GUIDANCE.— 

14 ‘‘(1) In addition to the information provided 

15 pursuant to subsection (a), the Commandant may 

16 furnish the selection board— 

17 ‘‘(A) specific direction relating to the needs 

18 of the Coast Guard for officers having par19 ticular skills, including direction relating to the 

20 need for a minimum number of officers with 

21 particular skills within a specialty; and 

22 ‘‘(B) any other guidance that the Com23 mandant believes may be necessary to enable 

24 the board to properly perform its functions. 


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1 ‘‘(2) Selections made based on the direction and 

2 guidance provided under this subsection shall not ex3 ceed the maximum percentage of officers who may 

4 be selected from below the announced promotion 

5 zone at any given selection board convened under 

6 section 251 of this title.’’; 

7 (3) in section 259(a), by inserting after ‘‘whom 

8 the board’’ the following: ‘‘, giving due consideration 

9 to the needs of the Coast Guard for officers with 

10 particular skills so noted in specific direction fur11 nished to the board by the Commandant under sec12 tion 258 of this title,’’; and 

13 (4) in section 260(b), by inserting after ‘‘quali14 fied for promotion’’ the following: ‘‘to meet the 

15 needs of the service (as noted in specific direction 

16 furnished the board by the Commandant under sec17 tion 258 of this title)’’. 

18 SEC. 305. COAST GUARD ACQUISITION WORKFORCE EXPE19 DITED HIRING AUTHORITY. 

20 (a) IN GENERAL.—For purposes of sections 3304, 

21 5333, and 5753 of title 5, United States Code, the Com22 mandant may— 

23 (1) designate any category of acquisition posi24 tions within the Coast Guard as shortage category 

25 positions; and 


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1 (2) use the authorities in such sections to re2 cruit and appoint highly qualified persons directly to 

3 positions so designated. 

4 (b) LIMITATION.—The Commandant may not ap5 point a person to a position of employment under this sub6 section after September 30, 2012. 

Æ 


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