IB 

Union Calendar No. 117 

111TH CONGRESS 

1ST SESSION H. R. 1665 

[Report No. 111–215] 

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 

JULY 20, 2009 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 

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’’. 

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1 (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 

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. 

2 SEC. 2. DEFINITIONS. 

3 In this Act, the following definitions apply: 

4 (1) APPROPRIATE CONGRESSIONAL COMMIT5 TEES.—The term ‘‘appropriate congressional com6 mittees’’ means the Committee on Transportation 

7 and Infrastructure of the House of Representatives 

8 and the Committee on Commerce, Science, and 

9 Transportation of the Senate. 

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

11 means the Commandant of the Coast Guard. 

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

2 acquisition’’ means— 

3 (A) an acquisition by the Coast Guard— 

4 (i) the estimated life-cycle costs of 

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

6 (ii) the estimated total acquisition 

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

8 (B) any acquisition that the Chief Acquisi9 tion Officer of the Coast Guard determines to 

10 have a special interest— 

11 (i) due to— 

12 (I) the experimental or tech13 nically immature nature of the asset; 

14 (II) the technological complexity 

15 of the asset; 

16 (III) the commitment of re17 sources; or 

18 (IV) the nature of the capability 

19 or set of capabilities to be achieved; or 

20 (ii) because such acquisition is a joint 

21 acquisition. 

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

23 acquisition’’ means an acquisition by the Coast 

24 Guard— 

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

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

3 greater than $300,000,000; or 

4 (B) the estimated total acquisition costs of 

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

6 but greater than $100,000,000. 

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

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

9 construction, and operations and support for a par10 ticular capability or asset, without regard to funding 

11 source or management control. 

12 TITLE I—RESTRICTIONS ON THE 

13 USE OF LEAD SYSTEMS INTE14 GRATORS 

15 SEC. 101. PROCUREMENT STRUCTURE. 

16 (a) IN GENERAL.— 

17 (1) USE OF LEAD SYSTEMS INTEGRATOR.—Ex18 cept as provided in subsection (b), the Commandant 

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

20 integrator for an acquisition contract awarded or de21 livery order or task order issued after the end of the 

22 180-day period beginning on the date of enactment 

23 of this Act. 

24 (2) FULL AND OPEN COMPETITION.—The Com25 mandant and any lead systems integrator engaged 

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1 by the Coast Guard shall use full and open competi2 tion for any acquisition contract awarded after the 

3 date of enactment of this Act, unless otherwise ex4 cepted in accordance with Federal acquisition laws 

5 and regulations promulgated under those laws, in6 cluding the Federal Acquisition Regulation. 

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

8 Nothing in this subsection shall be construed to su9 persede or otherwise affect the authorities provided 

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

11 631 et seq.). 

12 (b) EXCEPTIONS.— 

13 (1) NATIONAL DISTRESS AND RESPONSE SYS14 TEM MODERNIZATION PROGRAM; NATIONAL SECU15 RITY CUTTERS 2 AND 3.—Notwithstanding sub16 sections (a) and (e), the Commandant may use a 

17 private sector entity as a lead systems integrator for 

18 the Coast Guard to complete the National Distress 

19 and Response System Modernization Program (oth20 erwise known as the ‘‘Rescue 21’’ program) and Na21 tional Security Cutters 2 and 3. 

22 (2) COMPLETION OF ACQUISITION BY LEAD

23 SYSTEMS INTEGRATOR.—Notwithstanding subsection 

24 (a), the Commandant may use a private sector entiWWOODS2 on DSKGBLS3C1PROD with BILLS

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1 ty as a lead systems integrator for the Coast 

2 Guard— 

3 (A) to complete any delivery order or task 

4 order, including the exercise of previously estab5 lished options on a delivery order or task order 

6 that was issued to a lead systems integrator on 

7 or before the date that is 180 days after the 

8 date of enactment of this Act without any 

9 change in the quantity of capabilities or assets 

10 or the specific type of capabilities or assets cov11 ered by the order; 

12 (B) 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, the 

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

16 C4ISR system, if the requirements of sub17 section (c) are met with respect to such acquisi18 tions; 

19 (C) for a contract awarded after the date 

20 that is 180 days after the date of enactment of 

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

22 Maritime Patrol Aircraft, if the requirements of 

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

24 acquisition; and 

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

2 additional National Security Cutters or Mari3 time Patrol Aircraft, if the Commandant deter4 mines that— 

5 (i) the acquisition is in accordance 

6 with Federal acquisition laws and regula7 tions promulgated under those laws, in8 cluding the Federal Acquisition Regula9 tion; 

10 (ii) the acquisition and the use of a 

11 private sector entity as a lead systems inte12 grator for the acquisition are in the best 

13 interest of the Federal Government; and 

14 (iii) the requirements of subsection (c) 

15 are met with respect to such acquisition. 

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

17 If the Commandant determines under subparagraph 

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

19 Guard will use a private sector lead systems inte20 grator for an acquisition, the Commandant shall no21 tify in writing the appropriate congressional commit22 tees of the Commandant’s determination and shall 

23 provide a detailed rationale for the determination, at 

24 least 30 days before the award of a contract or 

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

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1 private sector lead systems integrator, including a 

2 comparison of the cost of the acquisition through the 

3 private sector lead systems integrator with the ex4 pected cost if the acquisition were awarded directly 

5 to the manufacturer or shipyard. For purposes of 

6 that comparison, the cost of award directly to a 

7 manufacturer or shipyard shall include the costs of 

8 Government contract management and oversight. 

9 (c) LIMITATION ON LEAD SYSTEMS INTEGRATORS.— 

10 Neither an entity performing lead systems integrator func11 tions for a Coast Guard acquisition nor a Tier 1 subcon12 tractor for any acquisition described in subparagraph (B), 

13 (C), or (D) of subsection (b)(2) may have a financial inter14 est in a subcontractor below the Tier 1 subcontractor level 

15 unless— 

16 (1) the subcontractor was selected by the prime 

17 contractor through full and open competition for 

18 such procurement; 

19 (2) the procurement was awarded by the lead 

20 systems integrator or a subcontractor through full 

21 and open competition; 

22 (3) the procurement was awarded by a subcon23 tractor through a process over which the lead sys24 tems integrator or a Tier 1 subcontractor exercised 

25 no control; or 

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1 (4) the Commandant has determined that the 

2 procurement was awarded in a manner consistent 

3 with Federal acquisition laws and regulations pro4 mulgated under those laws, including the Federal 

5 Acquisition Regulation. 

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

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

8 assets to which subsection (b) applies shall not be con9 strued to apply to the modification of the number or type 

10 of any sub-systems or other components of a vessel or air11 craft described in subparagraph (B), (C), or (D) of sub12 section (b)(2). 

13 (e) TERMINATION DATE FOR EXCEPTIONS.—Except 

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

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

16 for acquisition contracts awarded, or task orders or deliv17 ery orders issued, after the earlier of— 

18 (1) September 30, 2011; or 

19 (2) the date on which the Commandant certifies 

20 in writing to the appropriate congressional commit21 tees that the Coast Guard has available and can re22 tain sufficient acquisition workforce personnel and 

23 expertise within the Coast Guard, through an ar24 rangement with other Federal agencies, or through 

25 contracts or other arrangements with private sector 

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1 entities, to perform the functions and responsibilities 

2 of the lead systems integrator in an efficient and 

3 cost-effective manner. 

4 TITLE II—COAST GUARD 

5 ACQUISITION POLICY 

6 SEC. 201. OPERATIONAL REQUIREMENTS. 

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

8 program may be initiated by the Coast Guard, and no pro9 duction contract may be awarded for such an acquisition, 

10 unless the Commandant has approved an operational re11 quirement for such acquisition. 

12 (b) OPERATIONAL REQUIREMENT FOR ACQUISITION

13 PROGRAMS.— 

14 (1) IN GENERAL.—The Commandant shall es15 tablish mature and stable operational requirements 

16 for acquisition programs. 

17 (2) ELEMENTS.—Prior to establishing oper18 ational requirements under paragraph (1), the Com19 mandant shall— 

20 (A) prepare a preliminary statement of 

21 need, a concept of operations, an analysis of al22 ternatives or the equivalent, an estimate of life23 cycle costs, and requirements for interoper24 ability with other capabilities and assets within 

25 and external to the Coast Guard; and 

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1 (B) in preparing the concept of operations 

2 under subparagraph (A), coordinate with acqui3 sition and support professionals, requirements 

4 officials, operational users and maintainers, and 

5 resource officials who can ensure the appro6 priate consideration of performance, cost, 

7 schedule and risk trade-offs. 

8 (c) CONSIDERATION OF TRADE-OFFS.—In estab9 lishing operational requirements under subsection (a), the 

10 Commandant shall develop and implement mechanisms to 

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

12 and risk are considered in the establishment of operational 

13 requirements for development and production of a Level 

14 1 or Level 2 acquisition. 

15 (d) ELEMENTS.—The mechanisms required under 

16 this section shall ensure at a minimum that Coast Guard 

17 officials responsible for acquisition management, budget, 

18 and cost estimating functions have the authority to de19 velop cost estimates and raise cost and schedule matters 

20 at any point in the process of establishing operational re21 quirements for a Level 1 or Level 2 acquisition. 

22 SEC. 202. REQUIRED CONTRACT TERMS. 

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

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

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

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1 an expected service life of 10 years and with a total acqui2 sition cost that is equal to or exceeds $10,000,000 award3 ed or issued by the Coast Guard after the date of enact4 ment of this Act— 

5 (1) provides that all certifications for an end6 state capability or asset under such contract, deliv7 ery order, or task order, respectively, will be con8 ducted by the Commandant or an independent third 

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

10 subcontractor is not allowed; 

11 (2) requires that the Commandant shall main12 tain the authority to establish, approve, and main13 tain technical requirements; 

14 (3) requires that any measurement of con15 tractor and subcontractor performance be based on 

16 the status of all work performed, including the ex17 tent to which the work performed met all perform18 ance, cost, and schedule requirements; 

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

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

21 which compliance with TEMPEST certification is a 

22 requirement, the standard for determining such com23 pliance will be the air, surface, or shore standard 

24 then used by the Department of the Navy for that 

25 type of capability or asset; and 

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1 (5) for any contract awarded to acquire an Off2 shore Patrol Cutter, includes provisions specifying 

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

4 general Atlantic and North Pacific Sea conditions, 

5 maximum range, and maximum speed the cutter will 

6 be built to achieve. 

7 (b) PROHIBITED CONTRACT PROVISIONS.—The Com8 mandant shall ensure that any contract awarded or deliv9 ery order or task order issued by the Coast Guard after 

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

11 provision allowing for equitable adjustment that differs 

12 from the Federal Acquisition Regulation. 

13 (c) EXTENSION OF PROGRAM.—Any contract, con14 tract modification, or award term extending a contract 

15 with a lead systems integrator— 

16 (1) shall not include any minimum require17 ments for the purchase of a given or determinable 

18 number of specific capabilities or assets; and 

19 (2) shall be reviewed by an independent third 

20 party with expertise in acquisition management, and 

21 the results of that review shall be submitted to the 

22 appropriate congressional committees at least 60 

23 days prior to the award of the contract, contract 

24 modification, or award term. 

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1 SEC. 203. LIFE-CYCLE COST ESTIMATES. 

2 (a) IN GENERAL.—The Commandant shall imple3 ment mechanisms to ensure the development and regular 

4 updating of life-cycle cost estimates for each acquisition 

5 with a total acquisition cost that equals or exceeds 

6 $10,000,000 and an expected service life of 10 years, and 

7 to ensure that these estimates are considered in decisions 

8 to develop or produce new or enhanced capabilities and 

9 assets. 

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

11 cost estimates that may be developed by acquisition pro12 gram offices, the Commandant shall require that an inde13 pendent life-cycle cost estimate be developed for each 

14 Level 1 or Level 2 acquisition program or project. 

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

16 2 acquisition program or project the Commandant shall 

17 require that life-cycle cost estimates shall be updated be18 fore each milestone decision is concluded and the program 

19 or project enters a new acquisition phase. 

20 SEC. 204. TEST AND EVALUATION. 

21 (a) TEST AND EVALUATION MASTER PLAN.— 

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

23 acquisition program or project the Coast Guard 

24 Chief Acquisition Officer must approve a Test and 

25 Evaluation Master Plan specific to the acquisition 

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1 systems of the capability or asset and intended to 

2 minimize technical, cost, and schedule risk as early 

3 as practicable in the development of the program or 

4 project. 

5 (2) TEST AND EVALUATION STRATEGY.—The 

6 TEMP shall— 

7 (A) set forth an integrated test and evalua8 tion strategy that will verify that capability-level 

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

10 development, including performance and 

11 supportability, have been sufficiently proven be12 fore the capability, asset, or sub-system of the 

13 capability or asset is approved for production; 

14 and 

15 (B) require that adequate developmental 

16 tests and evaluations and operational tests and 

17 evaluations established under subparagraph (A) 

18 are performed to inform production decisions. 

19 (3) OTHER COMPONENTS OF TEMP.—At a min20 imum, the TEMP shall identify— 

21 (A) the key performance parameters to be 

22 resolved through the integrated test and evalua23 tion strategy; 

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1 (B) critical operational issues to be as2 sessed in addition to the key performance pa3 rameters; 

4 (C) specific development test and evalua5 tion phases and the scope of each phase; 

6 (D) modeling and simulation activities to 

7 be performed, if any, and the scope of such ac8 tivities; 

9 (E) early operational assessments to be 

10 performed, if any, and the scope of such assess11 ments; 

12 (F) operational test and evaluation phases; 

13 (G) an estimate of the resources, including 

14 funds, that will be required for all test, evalua15 tion, assessment, modeling, and simulation ac16 tivities; and 

17 (H) the Government entity or independent 

18 entity that will perform the test, evaluation, as19 sessment, modeling, and simulation activities. 

20 (4) UPDATE.—The Coast Guard Chief Acquisi21 tion Officer shall approve an updated TEMP when22 ever there is a revision to program or project test 

23 and evaluation strategy, scope, or phasing. 

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

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1 (A) proceed past that phase of the acquisi2 tion process that entails approving the sup3 porting acquisition of a capability or asset be4 fore the TEMP is approved by the Coast Guard 

5 Chief Acquisition Officer; or 

6 (B) award any production contract for a 

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

8 TEMP is required under this subsection before 

9 the TEMP is approved by the Coast Guard 

10 Chief Acquisition Officer. 

11 (b) TESTS AND EVALUATIONS.— 

12 (1) IN GENERAL.—The Commandant shall en13 sure that the Coast Guard conducts developmental 

14 tests and evaluations and operational tests and eval15 uations of a capability or asset and the sub-systems 

16 of the capability or asset for which a TEMP has 

17 been prepared under subsection (a). 

18 (2) USE OF THIRD PARTIES.—The Com19 mandant shall ensure that the Coast Guard uses 

20 third parties with expertise in testing and evaluating 

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

22 capabilities or assets being acquired to conduct de23 velopmental tests and evaluations and operational 

24 tests and evaluations whenever the Coast Guard 

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1 lacks the capability to conduct the tests and evalua2 tions required by a TEMP. 

3 (3) COMMUNICATION OF SAFETY CONCERNS.— 

4 The Commandant shall require that safety concerns 

5 identified during developmental or operational tests 

6 and evaluations or through independent or Govern7 ment-conducted design assessments of capabilities or 

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

9 acquired by the Coast Guard shall be communicated 

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

11 after the completion of the test or assessment event 

12 or activity that identified the safety concern, to the 

13 program manager for the capability or asset and the 

14 sub-systems concerned and to the Coast Guard Chief 

15 Acquisition Officer. 

16 (4) REPORTING OF SAFETY CONCERNS.—Any 

17 safety concerns that have been reported to the Chief 

18 Acquisition Officer for an acquisition program or 

19 project shall be reported by the Commandant to the 

20 appropriate congressional committees at least 90 

21 days before the award of any contract or issuance of 

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

23 full-rate production of the capability or asset con24 cerned if they will remain uncorrected or unmiti25 gated at the time such a contract is awarded or deWWOODS2 on DSKGBLS3C1PROD with BILLS

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1 livery order or task order is issued. The report shall 

2 include a justification for the approval of that level 

3 of production of the capability or asset before the 

4 safety concern is corrected or mitigated. The report 

5 shall also include an explanation of the actions that 

6 will be taken to correct or mitigate the safety con7 cern, the date by which those actions will be taken, 

8 and the adequacy of current funding to correct or 

9 mitigate the safety concern. 

10 (5) ASSET ALREADY IN LOW, INITIAL, OR FULL11 RATE PRODUCTION.—If operational test and evalua12 tion on a capability or asset already in low, initial, 

13 or full-rate production identifies a safety concern 

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

15 the capability or asset not previously identified dur16 ing developmental or operational test and evaluation, 

17 the Commandant shall— 

18 (A) notify the program manager and the 

19 Chief Acquisition Officer of the safety concern 

20 as soon as practicable, but not later than 30 

21 days after the completion of the test and eval22 uation event or activity that identified the safe23 ty concern; and 

24 (B) notify the appropriate congressional 

25 Committee of the safety concern not later than 

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1 30 days after notification is made to the pro2 gram manager and Chief Acquisition Officer, 

3 and include in such notification— 

4 (i) an explanation of the actions that 

5 will be taken to correct or mitigate the 

6 safety concern in all capabilities or assets 

7 and sub-systems of the capabilities or as8 sets yet to be produced, and the date by 

9 which those actions will be taken; 

10 (ii) an explanation of the actions that 

11 will be taken to correct or mitigate the 

12 safety concern in previously produced ca13 pabilities or assets and sub-systems of the 

14 capabilities or assets, and the date by 

15 which those actions will be taken; and 

16 (iii) an assessment of the adequacy of 

17 current funding to correct or mitigate the 

18 safety concern in capabilities or assets and 

19 sub-systems of the capabilities or assets 

20 and in previously produced capabilities or 

21 assets and sub-systems. 

22 (c) DEFINITIONS.—In this section: 

23 (1) DEVELOPMENTAL TEST AND EVALUA24 TION.—The term ‘‘developmental test and evalua25 tion’’ means— 

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

2 the sub-systems of the capability or asset to de3 termine whether they meet all contractual per4 formance requirements, including technical per5 formance requirements, supportability require6 ments, and interoperability requirements and 

7 related specifications; and 

8 (B) the evaluation of the results of such 

9 testing. 

10 (2) OPERATIONAL TEST AND EVALUATION.— 

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

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

13 the sub-systems of the capability or asset, 

14 under conditions similar to those in which the 

15 capability or asset and subsystems will actually 

16 be deployed, for the purpose of determining the 

17 effectiveness and suitability of the capability or 

18 asset and sub-systems for use by typical Coast 

19 Guard users to conduct those missions for 

20 which the capability or asset and sub-systems 

21 are intended to be used; and 

22 (B) the evaluation of the results of such 

23 testing. 

24 (3) SAFETY CONCERN.—The term ‘‘safety con25 cern’’ means any hazard associated with a capability 

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

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

3 typical Coast Guard user in testing, maintaining, re4 pairing, or operating the capability, asset, or sub5 system or any hazard associated with the capability, 

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

7 damage to the capability, asset, or sub-system dur8 ing the course of its normal operation by a typical 

9 Coast Guard user. 

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

11 and Evaluation Master Plan for which approval is 

12 required under this section. 

13 SEC. 205. CAPABILITY STANDARDS. 

14 (a) CUTTER CLASSIFICATION.—The Commandant 

15 shall cause each cutter, other than a National Security 

16 Cutter, acquired by the Coast Guard and delivered after 

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

18 American Bureau of Shipping before final acceptance. 

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

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

21 and shore capabilities and assets that require TEM22 PEST certification and that are delivered after the 

23 date of enactment of this Act to be tested in accord24 ance with TEMPEST standards and communication 

25 security (COMSEC) standards by an independent 

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1 third party that is authorized by the Federal Gov2 ernment to perform such testing; and 

3 (2) certify that the capabilities and assets meet 

4 all applicable TEMPEST requirements. 

5 (c) NATIONAL SECURITY CUTTERS.— 

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

7 Not later than 90 days before the Coast Guard 

8 awards any contract or issues any delivery order or 

9 task order to strengthen the hull of either of Na10 tional Security Cutter 1 or 2 to resolve the struc11 tural design and performance issues identified in the 

12 Department of Homeland Security Inspector Gen13 eral’s report OIG–07–23 dated January 2007, the 

14 Commandant shall submit to the appropriate con15 gressional committees all results of an assessment of 

16 the proposed hull strengthening design conducted by 

17 the Coast Guard, including— 

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

19 which the hull strengthening measures to be im20 plemented on those cutters will enable the cut21 ters to meet contract and performance require22 ments; 

23 (B) a cost benefit analysis of the proposed 

24 hull strengthening measures for National Secu25 rity Cutters 1 and 2; and 

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1 (C) a description of any operational re2 strictions that would have to be applied to ei3 ther National Security Cutters 1 or 2 if the 

4 proposed hull strengthening measures were not 

5 implemented on either cutter. 

6 (2) OTHER VESSELS.—The Commandant shall 

7 cause the design and construction of each National 

8 Security Cutter, other than National Security Cut9 ters 1, 2, and 3, to be assessed by an independent 

10 third party with expertise in vessel design and con11 struction certification. 

12 (d) AIRCRAFT AIRWORTHINESS.—The Commandant 

13 shall cause all aircraft and aircraft engines acquired by 

14 the Coast Guard and delivered after the date of enactment 

15 of this Act to be assessed for airworthiness by an inde16 pendent third party with expertise in aircraft and aircraft 

17 engine certification, before final acceptance. 

18 SEC. 206. ACQUISITION PROGRAM REPORTS. 

19 Any Coast Guard Level 1 or Level 2 acquisition pro20 gram or project may not begin to obtain any capability 

21 or asset or proceed beyond that phase of its development 

22 that entails approving the supporting acquisition until the 

23 Commandant submits to the appropriate congressional 

24 committees the following: 

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1 (1) The key performance parameters, the key 

2 system attributes, and the operational performance 

3 attributes of the capability and asset to be acquired 

4 under the proposed acquisition program or project 

5 will be built to achieve. 

6 (2) A detailed list of the systems or other capa7 bilities with which the capability or asset to be ac8 quired is intended to be interoperable, including an 

9 explanation of the attributes of interoperability. 

10 (3) The anticipated acquisition program base11 line and acquisition unit cost for the capability or 

12 asset to be produced and deployed under the pro13 gram or project. 

14 (4) A detailed schedule for the acquisition proc15 ess showing when all capability and asset acquisi16 tions are to be completed and when all acquired ca17 pabilities and assets are to be initially and fully de18 ployed. 

19 SEC. 207. UNDEFINITIZED CONTRACTUAL ACTIONS. 

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

21 into an undefinitized contractual action unless such action 

22 is directly approved by the Head of Contracting Activity 

23 of the Coast Guard. 

24 (b) REQUESTS FOR UNDEFINITIZED CONTRACTUAL

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1 ity for approval of an undefinitized contractual action cov2 ered under subsection (a) must include a description of 

3 the anticipated effect on requirements of the Coast Guard 

4 if a delay is incurred for the purposes of determining con5 tractual terms, specifications, and price before perform6 ance is begun under the contractual action. 

7 (c) REQUIREMENTS FOR UNDEFINITIZED CONTRAC8 TUAL ACTIONS.— 

9 (1) DEADLINE FOR AGREEMENT ON TERMS, 

10 SPECIFICATIONS, AND PRICE.—A contracting officer 

11 of the Coast Guard may not enter into an 

12 undefinitized contractual action unless the contrac13 tual action provides for agreement upon contractual 

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

15 (A) the end of the 180-day period begin16 ning on the date on which the contractor sub17 mits a qualifying proposal to definitize the con18 tractual terms, specifications, and price; or 

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

20 obligated under the contractual action is equal 

21 to more than 50 percent of the negotiated over22 all ceiling price for the contractual action. 

23 (2) LIMITATION ON OBLIGATIONS.— 

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

25 subparagraph (B), the contracting officer for an 

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1 undefinitized contractual action may not obli2 gate under such contractual action an amount 

3 that exceeds 50 percent of the negotiated over4 all ceiling price until the contractual terms, 

5 specifications, and price are definitized for such 

6 contractual action. 

7 (B) EXCEPTION.—Notwithstanding sub8 paragraph (A), if a contractor submits a quali9 fying proposal to definitize an undefinitized 

10 contractual action before an amount that ex11 ceeds 50 percent of the negotiated overall ceil12 ing price is obligated on such action, the con13 tracting officer for such action may not obligate 

14 with respect to such contractual action an 

15 amount that exceeds 75 percent of the nego16 tiated overall ceiling price until the contractual 

17 terms, specifications, and price are definitized 

18 for such contractual action. 

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

20 application of this subsection with respect to a con21 tract if the Commandant determines that the waiver 

22 is necessary to support— 

23 (A) a contingency operation (as that term 

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

25 United States Code); 

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1 (B) an operation in response to an emer2 gency that poses an unacceptable threat to 

3 human health or safety or to the marine envi4 ronment; or 

5 (C) an operation in response to a natural 

6 disaster or major disaster or emergency des7 ignated by the President under the Robert T. 

8 Stafford Disaster Relief and Emergency Assist9 ance Act (42 U.S.C. 5121 et seq.). 

10 (4) LIMITATION ON APPLICATION.—This sub11 section does not apply to an undefinitized contrac12 tual action for the purchase of initial spares. 

13 (d) INCLUSION OF NONURGENT REQUIREMENTS.— 

14 Requirements for spare parts and support equipment that 

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

16 in an undefinitized contractual action by the Coast Guard 

17 for spare parts and support equipment that are needed 

18 on an urgent basis unless the Commandant approves such 

19 inclusion as being— 

20 (1) good business practice; and 

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

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

23 undefinitized contractual action under which performance 

24 has begun may not be modified unless the Commandant 

25 approves such modification as being— 

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1 (1) good business practice; and 

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

3 (f) ALLOWABLE PROFIT.—The Commandant shall 

4 ensure that the profit allowed on an undefinitized contrac5 tual action for which the final price is negotiated after 

6 a substantial portion of the performance required is com7 pleted reflects— 

8 (1) the possible reduced cost risk of the con9 tractor with respect to costs incurred during per10 formance of the contract before the final price is ne11 gotiated; and 

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

13 respect to costs incurred during performance of the 

14 remaining portion of the contract. 

15 (g) DEFINITIONS.—In this section: 

16 (1) UNDEFINITIZED CONTRACTUAL ACTION.— 

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

18 subparagraph (B), the term ‘‘undefinitized con19 tractual action’’ means a new procurement ac20 tion entered into by the Coast Guard for which 

21 the contractual terms, specifications, or price 

22 are not agreed upon before performance is 

23 begun under the action. 

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1 (B) EXCLUSION.—Such term does not in2 clude contractual actions with respect to the fol3 lowing: 

4 (i) Foreign military sales. 

5 (ii) Purchases in an amount not in ex6 cess of the amount of the simplified acqui7 sition threshold. 

8 (iii) Special access programs. 

9 (2) QUALIFYING PROPOSAL.—The term ‘‘quali10 fying proposal’’ means a proposal that contains suf11 ficient information to enable complete and meaning12 ful audits of the information contained in the pro13 posal as determined by the contracting officer. 

14 SEC. 208. GUIDANCE ON EXCESSIVE PASS-THROUGH 

15 CHARGES. 

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

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

18 guidance to ensure that pass-through charges on con19 tracts, subcontracts, delivery orders, and task orders that 

20 are entered into with a private entity acting as a lead sys21 tems integrator by or on behalf of the Coast Guard are 

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

23 the relevant contractor or subcontractor. The guidance 

24 shall, at a minimum— 

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1 (1) set forth clear standards for determining 

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

3 contract by a contractor or subcontractor; 

4 (2) set forth procedures for preventing the pay5 ment by the Government of excessive pass-through 

6 charges; and 

7 (3) identify any exceptions determined by the 

8 Commandant to be in the best interest of the Gov9 ernment. 

10 (b) EXCESSIVE PASS-THROUGH CHARGE DE11 FINED.—In this section the term ‘‘excessive pass-through 

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

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

14 means a charge to the Government by the contractor or 

15 subcontractor that is for overhead or profit on work per16 formed by a lower-tier contractor or subcontractor, other 

17 than reasonable charges for the direct costs of managing 

18 lower-tier contractors and subcontracts and overhead and 

19 profit based on such direct costs. 

20 (c) APPLICATION OF GUIDANCE.—The guidance 

21 under this subsection shall apply to contracts awarded to 

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

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

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

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1 SEC. 209. ACQUISITION OF MAJOR CAPABILITIES: ALTER2 NATIVES ANALYSIS. 

3 The Coast Guard may not acquire an experimental 

4 or technically immature capability or asset or implement 

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

6 an alternatives analysis for the capability or asset to be 

7 acquired in the concept and technology development phase 

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

9 analysis shall be conducted by a federally funded research 

10 and development center, a qualified entity of the Depart11 ment of Defense, or a similar independent third party enti12 ty that has appropriate acquisition expertise. Such alter13 natives analysis shall include— 

14 (1) an assessment of the technical maturity of 

15 the capability or asset and technical and other risks; 

16 (2) an examination of capability, interoper17 ability, and other advantages and disadvantages; 

18 (3) an evaluation of whether different combina19 tions or quantities of specific capabilities or assets 

20 could meet the Coast Guard’s overall performance 

21 needs; 

22 (4) a discussion of key assumptions and vari23 ables, and sensitivity to change in such assumptions 

24 and variables; 

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1 (5) when an alternative is an existing capa2 bility, asset, or prototype, an evaluation of relevant 

3 safety and performance records and costs; 

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

5 (A) an examination of development costs 

6 and the levels of uncertainty associated with 

7 such estimated costs; 

8 (B) an examination of likely production 

9 and deployment costs and the levels of uncer10 tainty associated with such estimated costs; 

11 (C) an examination of likely operating and 

12 support costs and the levels of uncertainty asso13 ciated with such estimated costs; 

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

15 examination of likely disposal costs and the lev16 els of uncertainty associated with such esti17 mated costs; and 

18 (E) such additional measures the Com19 mandant determines to be necessary for appro20 priate evaluation of the capability or asset; and 

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

22 SEC. 210. COST OVERRUNS AND DELAYS. 

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

24 report to the appropriate congressional committees as 

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

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1 Chief Acquisition Officer of the Coast Guard becomes 

2 aware of the breach of an acquisition program baseline 

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

4 (1) a likely cost overrun greater than 10 per5 cent of the acquisition program baseline for that in6 dividual capability or asset or a class of capabilities 

7 or assets; 

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

9 delivery schedule for any individual capability or 

10 asset or class of capabilities or assets; or 

11 (3) an anticipated failure for any individual ca12 pability or asset or class of capabilities or assets to 

13 satisfy any key performance threshold or parameter 

14 under the acquisition program baseline. 

15 (b) CONTENT.—The report submitted under sub16 section (a) shall include— 

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

18 explanation of its cause; 

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

20 and schedule; 

21 (3) an updated acquisition program baseline 

22 and the complete history of changes to the original 

23 acquisition program baseline; 

24 (4) the updated acquisition schedule and the 

25 complete history of changes to the original schedule; 

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1 (5) a full life-cycle cost analysis for the capa2 bility or asset or class of capabilities or assets; 

3 (6) a remediation plan identifying corrective ac4 tions and any resulting issues or risks; and 

5 (7) a description of how progress in the remedi6 ation plan will be measured and monitored. 

7 (c) SUBSTANTIAL VARIANCES IN COSTS OR SCHED8 ULE.—If a likely cost overrun is greater than 20 percent 

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

10 and schedule described in the acquisition program baseline 

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

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

13 report a written certification, with a supporting expla14 nation, that— 

15 (1) the capability or asset or capability or asset 

16 class to be acquired under the program or project is 

17 essential to the accomplishment of Coast Guard mis18 sions; 

19 (2) there are no alternatives to such capability 

20 or asset or capability or asset class which will pro21 vide equal or greater capability in both a more cost22 effective and timely manner; 

23 (3) the new acquisition schedule and estimates 

24 for total acquisition cost are reasonable; and 

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1 (4) the management structure for the acquisi2 tion program is adequate to manage and control per3 formance, cost, and schedule. 

4 SEC. 211. REPORT ON FORMER COAST GUARD OFFICIALS 

5 EMPLOYED BY CONTRACTORS TO THE AGEN6 CY. 

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

8 31, 2009, and annually thereafter, the Comptroller Gen9 eral of the United States shall submit a report to the ap10 propriate congressional committees on the employment 

11 during the preceding year by Coast Guard contractors of 

12 individuals who were Coast Guard officials in the previous 

13 5-year period. The report shall assess the extent to which 

14 former Coast Guard officials were provided compensation 

15 by Coast Guard contractors in the preceding calendar 

16 year. 

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

18 report required by this section shall assess the extent to 

19 which former Coast Guard officials who receive compensa20 tion from Coast Guard contractors have been assigned by 

21 those contractors to work on contracts or programs be22 tween the contractor and the Coast Guard, including con23 tracts or programs for which the former official personally 

24 had oversight responsibility or decision-making authority 

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

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1 (c) CONFIDENTIALITY REQUIREMENT.—The report 

2 required by this subsection shall not include the names 

3 of the former Coast Guard officials who receive compensa4 tion from Coast Guard contractors. 

5 (d) ACCESS TO INFORMATION.—A Coast Guard con6 tractor shall provide the Comptroller General access to in7 formation requested by the Comptroller General for the 

8 purpose of conducting the study required by this section. 

9 (e) DEFINITIONS.—In this section: 

10 (1) COAST GUARD CONTRACTOR.—The term 

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

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

13 from the Coast Guard in the calendar year covered 

14 by the annual report. 

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

16 Guard official’’ includes former officers of the Coast 

17 Guard who were compensated at a rate of pay for 

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

19 to the date on which they separated from the Coast 

20 Guard, and former civilian employees of the Coast 

21 Guard who served at any level of the Senior Execu22 tive Service under subchapter VIII of chapter 53 of 

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

24 prior to the date on which they separated from the 

25 Coast Guard. 

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1 SEC. 212. DEPARTMENT OF DEFENSE CONSULTATION. 

2 (a) IN GENERAL.—The Commandant shall make ar3 rangements as appropriate with the Secretary of Defense 

4 for support in contracting and management of Coast 

5 Guard acquisition programs. The Commandant shall also 

6 seek opportunities to make use of Department of Defense 

7 contracts, and contracts of other appropriate agencies, to 

8 obtain the best possible price for capabilities and assets 

9 acquired for the Coast Guard. 

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

11 Commandant may enter into a memorandum of under12 standing or a memorandum of agreement with the Sec13 retary of the Navy to obtain the assistance of the Office 

14 of the Assistant Secretary of the Navy for Research, De15 velopment, and Acquisition, including the Navy Systems 

16 Commands, with the oversight of Coast Guard major ac17 quisition programs. Such memorandum of understanding 

18 or memorandum of agreement shall, at a minimum, pro19 vide for— 

20 (1) the exchange of technical assistance and 

21 support that the Coast Guard Chief Acquisition Offi22 cer, Coast Guard Chief Engineer, and the Coast 

23 Guard Chief Information Officer may identify; 

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

25 expertise; and 

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1 (3) the temporary assignment or exchange of 

2 personnel between the Coast Guard and the Office 

3 of the Assistant Secretary of the Navy for Research, 

4 Development, and Acquisition, including Naval Sys5 tems Commands, to facilitate the development of or6 ganic capabilities in the Coast Guard. 

7 (c) TECHNICAL REQUIREMENT APPROVAL PROCE8 DURES.—The Coast Guard Chief Acquisition Officer shall 

9 adopt, to the extent practicable, procedures that are simi10 lar to those used by the senior procurement executive of 

11 the Department of the Navy to approve all technical re12 quirements. 

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

14 of enactment of this Act, the Comptroller General shall 

15 transmit a report to the appropriate congressional com16 mittees that— 

17 (1) contains an assessment of current Coast 

18 Guard acquisition and management capabilities to 

19 manage Level 1 and Level 2 acquisitions; 

20 (2) includes recommendations as to how the 

21 Coast Guard can improve its acquisition manage22 ment, either through internal reforms or by seeking 

23 acquisition expertise from the Department of De24 fense; and 

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1 (3) addresses specifically the question of wheth2 er the Coast Guard can better leverage Department 

3 of Defense or other agencies’ contracts that would 

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

5 order to obtain the best possible price. 

6 TITLE III—COAST GUARD 

7 PERSONNEL 

8 SEC. 301. CHIEF ACQUISITION OFFICER. 

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

10 States Code, is amended by adding at the end the fol11 lowing: 

12 ‘‘§ 55. Chief Acquisition Officer 

13 ‘‘(a) ESTABLISHMENT OF CHIEF ACQUISITION OFFI14 CER.—There shall be in the Coast Guard a Chief Acquisi15 tion Officer selected by the Commandant who shall be a 

16 Rear Admiral or civilian from the Senior Executive Service 

17 (career reserved) and who meets the qualifications set 

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

19 shall serve at the Assistant Commandant level and have 

20 acquisition management as that individual’s primary duty. 

21 ‘‘(b) QUALIFICATIONS.— 

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

23 Flag Officer serving in the Acquisitions Directorate 

24 shall be an acquisition professional with a program 

25 manager level III certification and must have at 

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1 least 10 years experience in an acquisition position, 

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

3 following qualifying positions: 

4 ‘‘(A) Program executive officer. 

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

6 Level 2 acquisition. 

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

8 1 or Level 2 acquisition. 

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

10 Level 2 acquisition. 

11 ‘‘(E) Any other acquisition position of sig12 nificant responsibility in which the primary du13 ties are supervisory or management duties. 

14 ‘‘(2) The Commandant shall periodically publish 

15 a list of the positions designated under this sub16 section. 

17 ‘‘(c) AUTHORITY AND FUNCTIONS OF THE CHIEF AC18 QUISITION OFFICER.—The functions of the Chief Acquisi19 tion Officer shall include— 

20 ‘‘(1) monitoring the performance of programs 

21 and projects on the basis of applicable performance 

22 measurements and advising the Commandant, 

23 through the chain of command, regarding the appro24 priate business strategy to achieve the missions of 

25 the Coast Guard; 

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1 ‘‘(2) maximizing the use of full and open com2 petition at the prime contract and subcontract levels 

3 in the acquisition of property, capabilities, assets, 

4 and services by the Coast Guard by establishing poli5 cies, procedures, and practices that ensure that the 

6 Coast Guard receives a sufficient number of sealed 

7 bids or competitive proposals from responsible 

8 sources to fulfill the Government’s requirements, in9 cluding performance and delivery schedules, at the 

10 lowest cost or best value considering the nature of 

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

12 ‘‘(3) making acquisition decisions in concur13 rence with the technical authority of the Coast 

14 Guard, as designated by the Commandant, and con15 sistent with all other applicable laws and decisions 

16 establishing procedures within the Coast Guard; 

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

18 specifications in instances in which performance 

19 based contracting is used; 

20 ‘‘(5) managing the direction of acquisition pol21 icy for the Coast Guard, including implementation of 

22 the unique acquisition policies, regulations, and 

23 standards of the Coast Guard; 

24 ‘‘(6) developing and maintaining an acquisition 

25 career management program in the Coast Guard to 

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1 ensure that there is an adequate acquisition work2 force; 

3 ‘‘(7) assessing the requirements established for 

4 Coast Guard personnel regarding knowledge and 

5 skill in acquisition resources and management and 

6 the adequacy of such requirements for facilitating 

7 the achievement of the performance goals established 

8 for acquisition management; 

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

10 hiring, training, and professional development; and 

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

12 chain of command, on the progress made in improv13 ing acquisition management capability.’’. 

14 (b) APPLICATION OF QUALIFICATION REQUIRE15 MENT.—Section 55(b) of title 46, United States Code, as 

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

17 2011. 

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

19 at the beginning of such chapter is amended by adding 

20 at the end the following: 

‘‘55. Chief Acquisition Officer.’’. 

21 (d) ELEVATION OF DISPUTES TO THE CHIEF ACQUI22 SITION OFFICER.—Within 45 days after the elevation to 

23 the Chief Acquisition Officer of any design or other dis24 pute regarding a Level 1 or Level 2 acquisition, the Com25 mandant shall provide to the appropriate congressional 

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1 committees a detailed description of the issue and the ra2 tionale underlying the decision taken by the Chief Acquisi3 tion Officer to resolve the issue. 

4 (e) SPECIAL RATE SUPPLEMENTS.— 

5 (1) REQUIREMENT TO ESTABLISH.—Not later 

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

7 and in accordance with part 9701.333 of title 5, 

8 Code of Federal Regulations, the Commandant shall 

9 establish special rate supplements that provide high10 er pay levels for employees necessary to carry out 

11 the amendment made by this section. 

12 (2) SUBJECT TO APPROPRIATIONS.—The re13 quirement under paragraph (1) is subject to the 

14 availability of appropriations. 

15 SEC. 302. IMPROVEMENTS IN COAST GUARD ACQUISITION 

16 MANAGEMENT. 

17 (a) PROGRAM AND PROJECT MANAGERS.—An indi18 vidual may not be assigned as the program manager for 

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

20 a Level III acquisition certification as a program manager. 

21 (b) INTEGRATED PRODUCT TEAMS.—Integrated 

22 product teams, and all teams that oversee integrated prod23 uct teams, shall be chaired by officers, members, or em24 ployees of the Coast Guard. 

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1 (c) TECHNICAL AUTHORITY.—The Commandant 

2 shall maintain or designate the technical authority to es3 tablish, approve, and maintain technical requirements. 

4 Any such designation shall be made in writing and may 

5 not be delegated to the authority of the Chief Acquisition 

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

7 Code. 

8 (d) DESIGNATION OF POSITIONS IN THE ACQUISI9 TION WORKFORCE.— 

10 (1) IN GENERAL.—The Commandant shall des11 ignate a sufficient number of positions to be in the 

12 Coast Guard’s acquisition workforce to perform ac13 quisition-related functions at Coast Guard head14 quarters and field activities. 

15 (2) REQUIRED POSITIONS.—In designating po16 sitions under subsection (a), the Commandant shall 

17 include, at a minimum, positions encompassing the 

18 following competencies and functions: 

19 (A) Program management. 

20 (B) Systems planning, research, develop21 ment, engineering, and testing. 

22 (C) Procurement, including contracting. 

23 (D) Industrial and contract property man24 agement. 

25 (E) Life-cycle logistics. 

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1 (F) Quality control and assurance. 

2 (G) Manufacturing and production. 

3 (H) Business, cost estimating, financial 

4 management, and auditing. 

5 (I) Acquisition education, training, and ca6 reer development. 

7 (J) Construction and facilities engineering. 

8 (K) Testing and evaluation. 

9 (3) ACQUISITION MANAGEMENT HEADQUARTER

10 ACTIVITIES.—The Commandant shall also designate 

11 as positions in the acquisition workforce under para12 graph (1) those acquisition-related positions located 

13 at Coast Guard headquarters units. 

14 (4) APPROPRIATE EXPERTISE REQUIRED.—The 

15 Commandant shall ensure that each individual as16 signed to a position in the acquisition workforce has 

17 the appropriate expertise to carry out the respon18 sibilities of that position. 

19 (e) MANAGEMENT INFORMATION SYSTEM.— 

20 (1) IN GENERAL.—The Commandant shall es21 tablish a management information system capability 

22 to improve acquisition workforce management and 

23 reporting. 

24 (2) INFORMATION MAINTAINED.—Information 

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1 lowing standardized information on individuals as2 signed to positions in the workforce: 

3 (A) Qualifications, assignment history, and 

4 tenure of those individuals assigned to positions 

5 in the acquisition workforce or holding acquisi6 tion-related certifications. 

7 (B) Promotion rates for officers and mem8 bers of the Coast Guard in the acquisition 

9 workforce. 

10 (f) REPORT ON ADEQUACY OF ACQUISITION WORK11 FORCE.— 

12 (1) IN GENERAL.—The Commandant shall re13 port to the appropriate congressional committees by 

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

15 activities to be performed in the next fiscal year and 

16 on the adequacy of the current acquisition workforce 

17 to meet that anticipated workload. 

18 (2) CONTENTS.—The report shall— 

19 (A) specify the number of officers, mem20 bers, and employees of the Coast Guard cur21 rently and planned to be assigned to each posi22 tion designated under subsection (d); and 

23 (B) identify positions that are understaffed 

24 to meet the anticipated acquisition workload, 

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1 and actions that will be taken to correct such 

2 understaffing. 

3 (g) APPOINTMENTS TO ACQUISITION POSITIONS.— 

4 The Commandant shall ensure that no requirement or 

5 preference for officers or members of the Coast Guard is 

6 used in the consideration of persons for positions in the 

7 acquisition workforce. 

8 (h) CAREER PATHS.— 

9 (1) IDENTIFICATION OF CAREER PATHS.—To 

10 establish acquisition management as a core com11 petency of the Coast Guard, the Commandant 

12 shall— 

13 (A) ensure that career paths for officers, 

14 members, and employees of the Coast Guard 

15 who wish to pursue careers in acquisition are 

16 identified in terms of the education, training, 

17 experience, and assignments necessary for ca18 reer progression of those officers, members, and 

19 employees to the most senior positions in the 

20 acquisition workforce; and 

21 (B) publish information on such career 

22 paths. 

23 (2) PROMOTION PARITY.—The Commandant 

24 shall ensure that promotion parity is established for 

25 officers and members of the Coast Guard who have 

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1 been assigned to the acquisition workforce relative to 

2 officers and members who have not been assigned to 

3 the acquisition workforce. 

4 (i) BALANCED WORKFORCE POLICY.—In the devel5 opment of acquisition workforce policies under this section 

6 with respect to any civilian employees or applicants for 

7 employment, the Commandant shall, consistent with the 

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

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

10 consideration the need to maintain a balanced workforce 

11 in which women and members of racial and ethnic minor12 ity groups are appropriately represented in Government 

13 service. 

14 (j) GUIDANCE ON TENURE AND ACCOUNTABILITY OF

15 PROGRAM MANAGERS.— 

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

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

18 Commandant shall issue guidance to address the 

19 qualifications, resources, responsibilities, tenure, and 

20 accountability of program managers for the manage21 ment of acquisition programs and projects. The 

22 guidance shall address, at a minimum— 

23 (A) the qualifications that shall be required 

24 of program managers, including the number of 

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1 sional training levels to be required of those ap2 pointed to program management positions; 

3 (B) authorities available to program man4 agers, including, to the extent appropriate, the 

5 authority to object to the addition of new pro6 gram requirements that would be inconsistent 

7 with the parameters established for an acquisi8 tion program; and 

9 (C) the extent to which a program man10 ager who initiates a new program or project will 

11 continue in management of that program or 

12 project without interruption until the delivery of 

13 the first production units of the program. 

14 (2) STRATEGY.— 

15 (A) IN GENERAL.—Not later than 18 

16 months after the date of enactment of this Act, 

17 the Commandant shall develop a comprehensive 

18 strategy for enhancing the role of Coast Guard 

19 program managers in developing and carrying 

20 out acquisition programs. 

21 (B) MATTERS TO BE ADDRESSED.—The 

22 strategy required by this section shall address, 

23 at a minimum— 

24 (i) the creation of a specific career 

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1 uals who are or may become program man2 agers, including the rotational assignments 

3 that will be provided to program managers; 

4 (ii) the provision of enhanced training 

5 and educational opportunities for individ6 uals who are or may become program man7 agers; 

8 (iii) the provision of mentoring sup9 port to current and future program man10 agers by experienced senior executives and 

11 program managers within the Coast 

12 Guard, and through rotational assignments 

13 to the Department of Defense; 

14 (iv) the methods by which the Coast 

15 Guard will collect and disseminate best 

16 practices and lessons learned on systems 

17 acquisition to enhance program manage18 ment throughout the Coast Guard; 

19 (v) the templates and tools that will 

20 be used to support improved data gath21 ering and analysis for program manage22 ment and oversight purposes, including the 

23 metrics that will be utilized to assess the 

24 effectiveness of Coast Guard program 

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1 managers in managing systems acquisition 

2 efforts; 

3 (vi) a description in detail of how the 

4 Coast Guard will promote a balanced work5 force in which women and members of ra6 cial and ethnic minority groups are appro7 priately represented in Government service; 

8 and 

9 (vii) the methods by which the ac10 countability of program managers for the 

11 results of acquisition programs will be in12 creased. 

13 (3) REPORT BY COMPTROLLER GENERAL.—Not 

14 later than 2 years after the date of enactment of 

15 this Act, the Comptroller General of the United 

16 States shall submit to the appropriate congressional 

17 committees a report on the actions taken by the 

18 Commandant to implement the requirements of this 

19 subsection, including the strategies that are required 

20 to be developed by this subsection. 

21 SEC. 303. RECOGNITION OF COAST GUARD PERSONNEL 

22 FOR EXCELLENCE IN ACQUISITION. 

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

24 date of enactment of this Act, the Commandant shall com25 mence implementation of a program to recognize excellent 

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1 performance by individuals and teams comprised of offi2 cers, members, and employees of the Coast Guard that 

3 contributed to the long-term success of a Coast Guard ac4 quisition program or project. 

5 (b) ELEMENTS.—The program required by sub6 section (a) shall include the following: 

7 (1) Specific award categories, criteria, and eligi8 bility and manners of recognition. 

9 (2) Procedures for the nomination by personnel 

10 of the Coast Guard of individuals and teams com11 prised of officers, members, and employees of the 

12 Coast Guard for recognition under the program. 

13 (3) Procedures for the evaluation of nomina14 tions for recognition under the program by one or 

15 more panels of individuals from the Government, 

16 academia, and the private sector who have such ex17 pertise and are appointed in such manner as the 

18 Commandant shall establish for the purposes of this 

19 program. 

20 (c) AWARD OF CASH BONUSES.—As part of the pro21 gram required by subsection (a), the Commandant, sub22 ject to the availability of appropriations, may award to any 

23 individual recognized pursuant to the program a cash 

24 bonus to the extent that the performance of such indi25 vidual so recognized warrants the award of such bonus. 

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1 SEC. 304. ENHANCED STATUS QUO OFFICER PROMOTION 

2 SYSTEM. 

3 Chapter 11 of title 14, United States Code, is amend4 ed— 

5 (1) in section 253(a)— 

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

7 and 

8 (B) by striking ‘‘, and the number of offi9 cers the board may recommend for promotion’’; 

10 (2) in section 258— 

11 (A) by inserting ‘‘(a) IN GENERAL.—’’ be12 fore the existing text; 

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

14 striking the colon at the end of the material 

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

16 and 

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

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

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

20 pursuant to subsection (a), the Commandant may 

21 furnish the selection board— 

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

23 of the Coast Guard for officers having par24 ticular skills, including direction relating to the 

25 need for a minimum number of officers with 

26 particular skills within a specialty; and 

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1 ‘‘(B) any other guidance that the Com2 mandant believes may be necessary to enable 

3 the board to properly perform its functions. 

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

5 guidance provided under this subsection shall not ex6 ceed the maximum percentage of officers who may 

7 be selected from below the announced promotion 

8 zone at any given selection board convened under 

9 section 251 of this title.’’; 

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

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

12 to the needs of the Coast Guard for officers with 

13 particular skills so noted in specific direction fur14 nished to the board by the Commandant under sec15 tion 258 of this title,’’; and 

16 (4) in section 260(b), by inserting after ‘‘quali17 fied for promotion’’ the following: ‘‘to meet the 

18 needs of the service (as noted in specific direction 

19 furnished the board by the Commandant under sec20 tion 258 of this title)’’. 

21 SEC. 305. COAST GUARD ACQUISITION WORKFORCE EXPE22 DITED HIRING AUTHORITY. 

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

24 5333, and 5753 of title 5, United States Code, the Com25 mandant may— 

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1 (1) designate any category of acquisition posi2 tions within the Coast Guard as shortage category 

3 positions; and 

4 (2) use the authorities in such sections to re5 cruit and appoint highly qualified persons directly to 

6 positions so designated. 

7 (b) LIMITATION.—The Commandant may not ap8 point a person to a position of employment under this sub9 section after September 30, 2012. 

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Union Calendar No. 117 

111TH CONGRESS 

1ST SESSION H. R. 1665 

[Report No. 111–215] 

A BILL 

To structure Coast Guard acquisition processes and 

policies, and for other purposes. 

JULY 20, 2009 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

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