111TH CONGRESS 

1ST SESSION H. R. 1665 

AN ACT 

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, 
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

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

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

5 this Act is as follows: 

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. 

6 SEC. 2. DEFINITIONS. 

7 In this Act, the following definitions apply: 

8 (1) APPROPRIATE CONGRESSIONAL COMMIT9 TEES.—The term ‘‘appropriate congressional com10 mittees’’ means the Committee on Transportation 

11 and Infrastructure of the House of Representatives 
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1 and the Committee on Commerce, Science, and 

2 Transportation of the Senate. 

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

4 means the Commandant of the Coast Guard. 

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

6 acquisition’’ means— 

7 (A) an acquisition by the Coast Guard— 

8 (i) the estimated life-cycle costs of 

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

10 (ii) the estimated total acquisition 

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

12 (B) any acquisition that the Chief Acquisi13 tion Officer of the Coast Guard determines to 

14 have a special interest— 

15 (i) due to— 

16 (I) the experimental or tech17 nically immature nature of the asset; 

18 (II) the technological complexity 

19 of the asset; 

20 (III) the commitment of re21 sources; or 

22 (IV) the nature of the capability 

23 or set of capabilities to be achieved; or 

24 (ii) because such acquisition is a joint 

25 acquisition. 
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1 (4) LEVEL 2 ACQUISITION.—The term ‘‘Level 2 

2 acquisition’’ means an acquisition by the Coast 

3 Guard— 

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

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

6 greater than $300,000,000; or 

7 (B) the estimated total acquisition costs of 

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

9 but greater than $100,000,000. 

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

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

12 construction, and operations and support for a par13 ticular capability or asset, without regard to funding 

14 source or management control. 

15 TITLE I—RESTRICTIONS ON THE 

16 USE OF LEAD SYSTEMS INTE17 GRATORS 

18 SEC. 101. PROCUREMENT STRUCTURE. 

19 (a) IN GENERAL.— 

20 (1) USE OF LEAD SYSTEMS INTEGRATOR.—Ex21 cept as provided in subsection (b), the Commandant 

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

23 integrator for an acquisition contract awarded or de24 livery order or task order issued after the end of the 
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1 180-day period beginning on the date of enactment 

2 of this Act. 

3 (2) FULL AND OPEN COMPETITION.—The Com4 mandant and any lead systems integrator engaged 

5 by the Coast Guard shall use full and open competi6 tion for any acquisition contract awarded after the 

7 date of enactment of this Act, unless otherwise ex8 cepted in accordance with Federal acquisition laws 

9 and regulations promulgated under those laws, in10 cluding the Federal Acquisition Regulation. 

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

12 Nothing in this subsection shall be construed to su13 persede or otherwise affect the authorities provided 

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

15 631 et seq.). 

16 (b) EXCEPTIONS.— 

17 (1) NATIONAL DISTRESS AND RESPONSE SYS18 TEM MODERNIZATION PROGRAM; NATIONAL SECU19 RITY CUTTERS 2 AND 3.—Notwithstanding sub20 sections (a) and (e), the Commandant may use a 

21 private sector entity as a lead systems integrator for 

22 the Coast Guard to complete the National Distress 

23 and Response System Modernization Program (oth24 erwise known as the ‘‘Rescue 21’’ program) and Na25 tional Security Cutters 2 and 3. 
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1 (2) COMPLETION OF ACQUISITION BY LEAD

2 SYSTEMS INTEGRATOR.—Notwithstanding subsection 

3 (a), the Commandant may use a private sector enti4 ty as a lead systems integrator for the Coast 

5 Guard— 

6 (A) to complete any delivery order or task 

7 order, including the exercise of previously estab8 lished options on a delivery order or task order 

9 that was issued to a lead systems integrator on 

10 or before the date that is 180 days after the 

11 date of enactment of this Act without any 

12 change in the quantity of capabilities or assets 

13 or the specific type of capabilities or assets cov14 ered by the order; 

15 (B) for a contract awarded after the date 

16 that is 180 days after the date of enactment of 

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

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

19 C4ISR system, if the requirements of sub20 section (c) are met with respect to such acquisi21 tions; 

22 (C) for a contract awarded after the date 

23 that is 180 days after the date of enactment of 

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

25 Maritime Patrol Aircraft, if the requirements of 
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1 subsection (c) are met with respect to such an 

2 acquisition; and 

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

4 additional National Security Cutters or Mari5 time Patrol Aircraft, if the Commandant deter6 mines that— 

7 (i) the acquisition is in accordance 

8 with Federal acquisition laws and regula9 tions promulgated under those laws, in10 cluding the Federal Acquisition Regula11 tion; 

12 (ii) the acquisition and the use of a 

13 private sector entity as a lead systems inte14 grator for the acquisition are in the best 

15 interest of the Federal Government; and 

16 (iii) the requirements of subsection (c) 

17 are met with respect to such acquisition. 

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

19 If the Commandant determines under subparagraph 

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

21 Guard will use a private sector lead systems inte22 grator for an acquisition, the Commandant shall no23 tify in writing the appropriate congressional commit24 tees of the Commandant’s determination and shall 

25 provide a detailed rationale for the determination, at 
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1 least 30 days before the award of a contract or 

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

3 private sector lead systems integrator, including a 

4 comparison of the cost of the acquisition through the 

5 private sector lead systems integrator with the ex6 pected cost if the acquisition were awarded directly 

7 to the manufacturer or shipyard. For purposes of 

8 that comparison, the cost of award directly to a 

9 manufacturer or shipyard shall include the costs of 

10 Government contract management and oversight. 

11 (c) LIMITATION ON LEAD SYSTEMS INTEGRATORS.— 

12 Neither an entity performing lead systems integrator func13 tions for a Coast Guard acquisition nor a Tier 1 subcon14 tractor for any acquisition described in subparagraph (B), 

15 (C), or (D) of subsection (b)(2) may have a financial inter16 est in a subcontractor below the Tier 1 subcontractor level 

17 unless— 

18 (1) the subcontractor was selected by the prime 

19 contractor through full and open competition for 

20 such procurement; 

21 (2) the procurement was awarded by the lead 

22 systems integrator or a subcontractor through full 

23 and open competition; 

24 (3) the procurement was awarded by a subcon25 tractor through a process over which the lead sys-
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1 tems integrator or a Tier 1 subcontractor exercised 

2 no control; or 

3 (4) the Commandant has determined that the 

4 procurement was awarded in a manner consistent 

5 with Federal acquisition laws and regulations pro6 mulgated under those laws, including the Federal 

7 Acquisition Regulation. 

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

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

10 assets to which subsection (b) applies shall not be con11 strued to apply to the modification of the number or type 

12 of any sub-systems or other components of a vessel or air13 craft described in subparagraph (B), (C), or (D) of sub14 section (b)(2). 

15 (e) TERMINATION DATE FOR EXCEPTIONS.—Except 

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

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

18 for acquisition contracts awarded, or task orders or deliv19 ery orders issued, after the earlier of— 

20 (1) September 30, 2011; or 

21 (2) the date on which the Commandant certifies 

22 in writing to the appropriate congressional commit23 tees that the Coast Guard has available and can re24 tain sufficient acquisition workforce personnel and 

25 expertise within the Coast Guard, through an ar-
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1 rangement with other Federal agencies, or through 

2 contracts or other arrangements with private sector 

3 entities, to perform the functions and responsibilities 

4 of the lead systems integrator in an efficient and 

5 cost-effective manner. 

6 TITLE II—COAST GUARD 

7 ACQUISITION POLICY 

8 SEC. 201. OPERATIONAL REQUIREMENTS. 

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

10 program may be initiated by the Coast Guard, and no pro11 duction contract may be awarded for such an acquisition, 

12 unless the Commandant has approved an operational re13 quirement for such acquisition. 

14 (b) OPERATIONAL REQUIREMENT FOR ACQUISITION

15 PROGRAMS.— 

16 (1) IN GENERAL.—The Commandant shall es17 tablish mature and stable operational requirements 

18 for acquisition programs. 

19 (2) ELEMENTS.—Prior to establishing oper20 ational requirements under paragraph (1), the Com21 mandant shall— 

22 (A) prepare a preliminary statement of 

23 need, a concept of operations, an analysis of al24 ternatives or the equivalent, an estimate of life25 cycle costs, and requirements for interoper-
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1 ability with other capabilities and assets within 

2 and external to the Coast Guard; and 

3 (B) in preparing the concept of operations 

4 under subparagraph (A), coordinate with acqui5 sition and support professionals, requirements 

6 officials, operational users and maintainers, and 

7 resource officials who can ensure the appro8 priate consideration of performance, cost, 

9 schedule and risk trade-offs. 

10 (c) CONSIDERATION OF TRADE-OFFS.—In estab11 lishing operational requirements under subsection (a), the 

12 Commandant shall develop and implement mechanisms to 

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

14 and risk are considered in the establishment of operational 

15 requirements for development and production of a Level 

16 1 or Level 2 acquisition. 

17 (d) ELEMENTS.—The mechanisms required under 

18 this section shall ensure at a minimum that Coast Guard 

19 officials responsible for acquisition management, budget, 

20 and cost estimating functions have the authority to de21 velop cost estimates and raise cost and schedule matters 

22 at any point in the process of establishing operational re23 quirements for a Level 1 or Level 2 acquisition. 
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1 SEC. 202. REQUIRED CONTRACT TERMS. 

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

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

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

5 an expected service life of 10 years and with a total acqui6 sition cost that is equal to or exceeds $10,000,000 award7 ed or issued by the Coast Guard after the date of enact8 ment of this Act— 

9 (1) provides that all certifications for an end10 state capability or asset under such contract, deliv11 ery order, or task order, respectively, will be con12 ducted by the Commandant or an independent third 

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

14 subcontractor is not allowed; 

15 (2) requires that the Commandant shall main16 tain the authority to establish, approve, and main17 tain technical requirements; 

18 (3) requires that any measurement of con19 tractor and subcontractor performance be based on 

20 the status of all work performed, including the ex21 tent to which the work performed met all perform22 ance, cost, and schedule requirements; 

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

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

25 which compliance with TEMPEST certification is a 

26 requirement, the standard for determining such com-
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1 pliance will be the air, surface, or shore standard 

2 then used by the Department of the Navy for that 

3 type of capability or asset; and 

4 (5) for any contract awarded to acquire an Off5 shore Patrol Cutter, includes provisions specifying 

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

7 general Atlantic and North Pacific Sea conditions, 

8 maximum range, and maximum speed the cutter will 

9 be built to achieve. 

10 (b) PROHIBITED CONTRACT PROVISIONS.—The Com11 mandant shall ensure that any contract awarded or deliv12 ery order or task order issued by the Coast Guard after 

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

14 provision allowing for equitable adjustment that differs 

15 from the Federal Acquisition Regulation. 

16 (c) EXTENSION OF PROGRAM.—Any contract, con17 tract modification, or award term extending a contract 

18 with a lead systems integrator— 

19 (1) shall not include any minimum require20 ments for the purchase of a given or determinable 

21 number of specific capabilities or assets; and 

22 (2) shall be reviewed by an independent third 

23 party with expertise in acquisition management, and 

24 the results of that review shall be submitted to the 

25 appropriate congressional committees at least 60 
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1 days prior to the award of the contract, contract 

2 modification, or award term. 

3 SEC. 203. LIFE-CYCLE COST ESTIMATES. 

4 (a) IN GENERAL.—The Commandant shall imple5 ment mechanisms to ensure the development and regular 

6 updating of life-cycle cost estimates for each acquisition 

7 with a total acquisition cost that equals or exceeds 

8 $10,000,000 and an expected service life of 10 years, and 

9 to ensure that these estimates are considered in decisions 

10 to develop or produce new or enhanced capabilities and 

11 assets. 

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

13 cost estimates that may be developed by acquisition pro14 gram offices, the Commandant shall require that an inde15 pendent life-cycle cost estimate be developed for each 

16 Level 1 or Level 2 acquisition program or project. 

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

18 2 acquisition program or project the Commandant shall 

19 require that life-cycle cost estimates shall be updated be20 fore each milestone decision is concluded and the program 

21 or project enters a new acquisition phase. 

22 SEC. 204. TEST AND EVALUATION. 

23 (a) TEST AND EVALUATION MASTER PLAN.— 

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

25 acquisition program or project the Coast Guard 
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1 Chief Acquisition Officer must approve a Test and 

2 Evaluation Master Plan specific to the acquisition 

3 program or project for the capability, asset, or sub4 systems of the capability or asset and intended to 

5 minimize technical, cost, and schedule risk as early 

6 as practicable in the development of the program or 

7 project. 

8 (2) TEST AND EVALUATION STRATEGY.—The 

9 TEMP shall— 

10 (A) set forth an integrated test and evalua11 tion strategy that will verify that capability-level 

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

13 development, including performance and 

14 supportability, have been sufficiently proven be15 fore the capability, asset, or sub-system of the 

16 capability or asset is approved for production; 

17 and 

18 (B) require that adequate developmental 

19 tests and evaluations and operational tests and 

20 evaluations established under subparagraph (A) 

21 are performed to inform production decisions. 

22 (3) OTHER COMPONENTS OF TEMP.—At a min23 imum, the TEMP shall identify— 
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1 (A) the key performance parameters to be 

2 resolved through the integrated test and evalua3 tion strategy; 

4 (B) critical operational issues to be as5 sessed in addition to the key performance pa6 rameters; 

7 (C) specific development test and evalua8 tion phases and the scope of each phase; 

9 (D) modeling and simulation activities to 

10 be performed, if any, and the scope of such ac11 tivities; 

12 (E) early operational assessments to be 

13 performed, if any, and the scope of such assess14 ments; 

15 (F) operational test and evaluation phases; 

16 (G) an estimate of the resources, including 

17 funds, that will be required for all test, evalua18 tion, assessment, modeling, and simulation ac19 tivities; and 

20 (H) the Government entity or independent 

21 entity that will perform the test, evaluation, as22 sessment, modeling, and simulation activities. 

23 (4) UPDATE.—The Coast Guard Chief Acquisi24 tion Officer shall approve an updated TEMP when-
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1 ever there is a revision to program or project test 

2 and evaluation strategy, scope, or phasing. 

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

4 (A) proceed past that phase of the acquisi5 tion process that entails approving the sup6 porting acquisition of a capability or asset be7 fore the TEMP is approved by the Coast Guard 

8 Chief Acquisition Officer; or 

9 (B) award any production contract for a 

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

11 TEMP is required under this subsection before 

12 the TEMP is approved by the Coast Guard 

13 Chief Acquisition Officer. 

14 (b) TESTS AND EVALUATIONS.— 

15 (1) IN GENERAL.—The Commandant shall en16 sure that the Coast Guard conducts developmental 

17 tests and evaluations and operational tests and eval18 uations of a capability or asset and the sub-systems 

19 of the capability or asset for which a TEMP has 

20 been prepared under subsection (a). 

21 (2) USE OF THIRD PARTIES.—The Com22 mandant shall ensure that the Coast Guard uses 

23 third parties with expertise in testing and evaluating 

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

25 capabilities or assets being acquired to conduct de-
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1 velopmental tests and evaluations and operational 

2 tests and evaluations whenever the Coast Guard 

3 lacks the capability to conduct the tests and evalua4 tions required by a TEMP. 

5 (3) COMMUNICATION OF SAFETY CONCERNS.— 

6 The Commandant shall require that safety concerns 

7 identified during developmental or operational tests 

8 and evaluations or through independent or Govern9 ment-conducted design assessments of capabilities or 

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

11 acquired by the Coast Guard shall be communicated 

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

13 after the completion of the test or assessment event 

14 or activity that identified the safety concern, to the 

15 program manager for the capability or asset and the 

16 sub-systems concerned and to the Coast Guard Chief 

17 Acquisition Officer. 

18 (4) REPORTING OF SAFETY CONCERNS.—Any 

19 safety concerns that have been reported to the Chief 

20 Acquisition Officer for an acquisition program or 

21 project shall be reported by the Commandant to the 

22 appropriate congressional committees at least 90 

23 days before the award of any contract or issuance of 

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

25 full-rate production of the capability or asset con-
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1 cerned if they will remain uncorrected or unmiti2 gated at the time such a contract is awarded or de3 livery order or task order is issued. The report shall 

4 include a justification for the approval of that level 

5 of production of the capability or asset before the 

6 safety concern is corrected or mitigated. The report 

7 shall also include an explanation of the actions that 

8 will be taken to correct or mitigate the safety con9 cern, the date by which those actions will be taken, 

10 and the adequacy of current funding to correct or 

11 mitigate the safety concern. 

12 (5) ASSET ALREADY IN LOW, INITIAL, OR FULL13 RATE PRODUCTION.—If operational test and evalua14 tion on a capability or asset already in low, initial, 

15 or full-rate production identifies a safety concern 

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

17 the capability or asset not previously identified dur18 ing developmental or operational test and evaluation, 

19 the Commandant shall— 

20 (A) notify the program manager and the 

21 Chief Acquisition Officer of the safety concern 

22 as soon as practicable, but not later than 30 

23 days after the completion of the test and eval24 uation event or activity that identified the safe25 ty concern; and 
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1 (B) notify the appropriate congressional 

2 Committee of the safety concern not later than 

3 30 days after notification is made to the pro4 gram manager and Chief Acquisition Officer, 

5 and include in such notification— 

6 (i) an explanation of the actions that 

7 will be taken to correct or mitigate the 

8 safety concern in all capabilities or assets 

9 and sub-systems of the capabilities or as10 sets yet to be produced, and the date by 

11 which those actions will be taken; 

12 (ii) an explanation of the actions that 

13 will be taken to correct or mitigate the 

14 safety concern in previously produced ca15 pabilities or assets and sub-systems of the 

16 capabilities or assets, and the date by 

17 which those actions will be taken; and 

18 (iii) an assessment of the adequacy of 

19 current funding to correct or mitigate the 

20 safety concern in capabilities or assets and 

21 sub-systems of the capabilities or assets 

22 and in previously produced capabilities or 

23 assets and sub-systems. 

24 (c) DEFINITIONS.—In this section: 
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1 (1) DEVELOPMENTAL TEST AND EVALUA2 TION.—The term ‘‘developmental test and evalua3 tion’’ means— 

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

5 the sub-systems of the capability or asset to de6 termine whether they meet all contractual per7 formance requirements, including technical per8 formance requirements, supportability require9 ments, and interoperability requirements and 

10 related specifications; and 

11 (B) the evaluation of the results of such 

12 testing. 

13 (2) OPERATIONAL TEST AND EVALUATION.— 

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

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

16 the sub-systems of the capability or asset, 

17 under conditions similar to those in which the 

18 capability or asset and subsystems will actually 

19 be deployed, for the purpose of determining the 

20 effectiveness and suitability of the capability or 

21 asset and sub-systems for use by typical Coast 

22 Guard users to conduct those missions for 

23 which the capability or asset and sub-systems 

24 are intended to be used; and 
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1 (B) the evaluation of the results of such 

2 testing. 

3 (3) SAFETY CONCERN.—The term ‘‘safety con4 cern’’ means any hazard associated with a capability 

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

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

7 typical Coast Guard user in testing, maintaining, re8 pairing, or operating the capability, asset, or sub9 system or any hazard associated with the capability, 

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

11 damage to the capability, asset, or sub-system dur12 ing the course of its normal operation by a typical 

13 Coast Guard user. 

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

15 and Evaluation Master Plan for which approval is 

16 required under this section. 

17 SEC. 205. CAPABILITY STANDARDS. 

18 (a) CUTTER CLASSIFICATION.—The Commandant 

19 shall cause each cutter, other than a National Security 

20 Cutter, acquired by the Coast Guard and delivered after 

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

22 American Bureau of Shipping before final acceptance. 

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

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

25 and shore capabilities and assets that require TEM-
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1 PEST certification and that are delivered after the 

2 date of enactment of this Act to be tested in accord3 ance with TEMPEST standards and communication 

4 security (COMSEC) standards by an independent 

5 third party that is authorized by the Federal Gov6 ernment to perform such testing; and 

7 (2) certify that the capabilities and assets meet 

8 all applicable TEMPEST requirements. 

9 (c) NATIONAL SECURITY CUTTERS.— 

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

11 Not later than 90 days before the Coast Guard 

12 awards any contract or issues any delivery order or 

13 task order to strengthen the hull of either of Na14 tional Security Cutter 1 or 2 to resolve the struc15 tural design and performance issues identified in the 

16 Department of Homeland Security Inspector Gen17 eral’s report OIG–07–23 dated January 2007, the 

18 Commandant shall submit to the appropriate con19 gressional committees and the Committee on Home20 land Security of the House of Representatives all re21 sults of an assessment of the proposed hull strength22 ening design conducted by the Coast Guard, includ23 ing— 

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

25 which the hull strengthening measures to be im-
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1 plemented on those cutters will enable the cut2 ters to meet contract and performance require3 ments; 

4 (B) a cost benefit analysis of the proposed 

5 hull strengthening measures for National Secu6 rity Cutters 1 and 2; and 

7 (C) a description of any operational re8 strictions that would have to be applied to ei9 ther National Security Cutter 1 or 2 if the pro10 posed hull strengthening measures were not im11 plemented on either cutter. 

12 (2) OTHER VESSELS.—The Commandant shall 

13 cause the design and construction of each National 

14 Security Cutter, other than National Security Cut15 ters 1, 2, and 3, to be assessed by an independent 

16 third party with expertise in vessel design and con17 struction certification. 

18 (d) AIRCRAFT AIRWORTHINESS.—The Commandant 

19 shall cause all aircraft and aircraft engines acquired by 

20 the Coast Guard and delivered after the date of enactment 

21 of this Act to be assessed for airworthiness by an inde22 pendent third party with expertise in aircraft and aircraft 

23 engine certification, before final acceptance. 
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1 SEC. 206. ACQUISITION PROGRAM REPORTS. 

2 Any Coast Guard Level 1 or Level 2 acquisition pro3 gram or project may not begin to obtain any capability 

4 or asset or proceed beyond that phase of its development 

5 that entails approving the supporting acquisition until the 

6 Commandant submits to the appropriate congressional 

7 committees the following: 

8 (1) The key performance parameters, the key 

9 system attributes, and the operational performance 

10 attributes of the capability and asset to be acquired 

11 under the proposed acquisition program or project 

12 will be built to achieve. 

13 (2) A detailed list of the systems or other capa14 bilities with which the capability or asset to be ac15 quired is intended to be interoperable, including an 

16 explanation of the attributes of interoperability. 

17 (3) The anticipated acquisition program base18 line and acquisition unit cost for the capability or 

19 asset to be produced and deployed under the pro20 gram or project. 

21 (4) A detailed schedule for the acquisition proc22 ess showing when all capability and asset acquisi23 tions are to be completed and when all acquired ca24 pabilities and assets are to be initially and fully de25 ployed. 
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1 SEC. 207. UNDEFINITIZED CONTRACTUAL ACTIONS. 

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

3 into an undefinitized contractual action unless such action 

4 is directly approved by the Head of Contracting Activity 

5 of the Coast Guard. 

6 (b) REQUESTS FOR UNDEFINITIZED CONTRACTUAL

7 ACTIONS.—Any request to the Head of Contracting Activ8 ity for approval of an undefinitized contractual action cov9 ered under subsection (a) must include a description of 

10 the anticipated effect on requirements of the Coast Guard 

11 if a delay is incurred for the purposes of determining con12 tractual terms, specifications, and price before perform13 ance is begun under the contractual action. 

14 (c) REQUIREMENTS FOR UNDEFINITIZED CONTRAC15 TUAL ACTIONS.— 

16 (1) DEADLINE FOR AGREEMENT ON TERMS, 

17 SPECIFICATIONS, AND PRICE.—A contracting officer 

18 of the Coast Guard may not enter into an 

19 undefinitized contractual action unless the contrac20 tual action provides for agreement upon contractual 

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

22 (A) the end of the 180-day period begin23 ning on the date on which the contractor sub24 mits a qualifying proposal to definitize the con25 tractual terms, specifications, and price; or 
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1 (B) the date on which the amount of funds 

2 obligated under the contractual action is equal 

3 to more than 50 percent of the negotiated over4 all ceiling price for the contractual action. 

5 (2) LIMITATION ON OBLIGATIONS.— 

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

7 subparagraph (B), the contracting officer for an 

8 undefinitized contractual action may not obli9 gate under such contractual action an amount 

10 that exceeds 50 percent of the negotiated over11 all ceiling price until the contractual terms, 

12 specifications, and price are definitized for such 

13 contractual action. 

14 (B) EXCEPTION.—Notwithstanding sub15 paragraph (A), if a contractor submits a quali16 fying proposal to definitize an undefinitized 

17 contractual action before an amount that ex18 ceeds 50 percent of the negotiated overall ceil19 ing price is obligated on such action, the con20 tracting officer for such action may not obligate 

21 with respect to such contractual action an 

22 amount that exceeds 75 percent of the nego23 tiated overall ceiling price until the contractual 

24 terms, specifications, and price are definitized 

25 for such contractual action. 
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1 (3) WAIVER.—The Commandant may waive the 

2 application of this subsection with respect to a con3 tract if the Commandant determines that the waiver 

4 is necessary to support— 

5 (A) a contingency operation (as that term 

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

7 United States Code); 

8 (B) an operation in response to an emer9 gency that poses an unacceptable threat to 

10 human health or safety or to the marine envi11 ronment; or 

12 (C) an operation in response to a natural 

13 disaster or major disaster or emergency des14 ignated by the President under the Robert T. 

15 Stafford Disaster Relief and Emergency Assist16 ance Act (42 U.S.C. 5121 et seq.). 

17 (4) LIMITATION ON APPLICATION.—This sub18 section does not apply to an undefinitized contrac19 tual action for the purchase of initial spares. 

20 (d) INCLUSION OF NONURGENT REQUIREMENTS.— 

21 Requirements for spare parts and support equipment that 

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

23 in an undefinitized contractual action by the Coast Guard 

24 for spare parts and support equipment that are needed 
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1 on an urgent basis unless the Commandant approves such 

2 inclusion as being— 

3 (1) good business practice; and 

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

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

6 undefinitized contractual action under which performance 

7 has begun may not be modified unless the Commandant 

8 approves such modification as being— 

9 (1) good business practice; and 

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

11 (f) ALLOWABLE PROFIT.—The Commandant shall 

12 ensure that the profit allowed on an undefinitized contrac13 tual action for which the final price is negotiated after 

14 a substantial portion of the performance required is com15 pleted reflects— 

16 (1) the possible reduced cost risk of the con17 tractor with respect to costs incurred during per18 formance of the contract before the final price is ne19 gotiated; and 

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

21 respect to costs incurred during performance of the 

22 remaining portion of the contract. 

23 (g) DEFINITIONS.—In this section: 

24 (1) UNDEFINITIZED CONTRACTUAL ACTION.— 
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1 (A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the term ‘‘undefinitized con3 tractual action’’ means a new procurement ac4 tion entered into by the Coast Guard for which 

5 the contractual terms, specifications, or price 

6 are not agreed upon before performance is 

7 begun under the action. 

8 (B) EXCLUSION.—Such term does not in9 clude contractual actions with respect to the fol10 lowing: 

11 (i) Foreign military sales. 

12 (ii) Purchases in an amount not in ex13 cess of the amount of the simplified acqui14 sition threshold. 

15 (iii) Special access programs. 

16 (2) QUALIFYING PROPOSAL.—The term ‘‘quali17 fying proposal’’ means a proposal that contains suf18 ficient information to enable complete and meaning19 ful audits of the information contained in the pro20 posal as determined by the contracting officer. 

21 SEC. 208. GUIDANCE ON EXCESSIVE PASS-THROUGH 

22 CHARGES. 

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

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

25 guidance to ensure that pass-through charges on con-
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1 tracts, subcontracts, delivery orders, and task orders that 

2 are entered into with a private entity acting as a lead sys3 tems integrator by or on behalf of the Coast Guard are 

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

5 the relevant contractor or subcontractor. The guidance 

6 shall, at a minimum— 

7 (1) set forth clear standards for determining 

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

9 contract by a contractor or subcontractor; 

10 (2) set forth procedures for preventing the pay11 ment by the Government of excessive pass-through 

12 charges; and 

13 (3) identify any exceptions determined by the 

14 Commandant to be in the best interest of the Gov15 ernment. 

16 (b) EXCESSIVE PASS-THROUGH CHARGE DE17 FINED.—In this section the term ‘‘excessive pass-through 

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

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

20 means a charge to the Government by the contractor or 

21 subcontractor that is for overhead or profit on work per22 formed by a lower-tier contractor or subcontractor, other 

23 than reasonable charges for the direct costs of managing 

24 lower-tier contractors and subcontracts and overhead and 

25 profit based on such direct costs. 
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1 (c) APPLICATION OF GUIDANCE.—The guidance 

2 under this subsection shall apply to contracts awarded to 

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

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

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

6 SEC. 209. ACQUISITION OF MAJOR CAPABILITIES: ALTER7 NATIVES ANALYSIS. 

8 The Coast Guard may not acquire an experimental 

9 or technically immature capability or asset or implement 

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

11 an alternatives analysis for the capability or asset to be 

12 acquired in the concept and technology development phase 

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

14 analysis shall be conducted by a federally funded research 

15 and development center, a qualified entity of the Depart16 ment of Defense, or a similar independent third party enti17 ty that has appropriate acquisition expertise. Such alter18 natives analysis shall include— 

19 (1) an assessment of the technical maturity of 

20 the capability or asset and technical and other risks; 

21 (2) an examination of capability, interoper22 ability, and other advantages and disadvantages; 

23 (3) an evaluation of whether different combina24 tions or quantities of specific capabilities or assets 
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1 could meet the Coast Guard’s overall performance 

2 needs; 

3 (4) a discussion of key assumptions and vari4 ables, and sensitivity to change in such assumptions 

5 and variables; 

6 (5) when an alternative is an existing capa7 bility, asset, or prototype, an evaluation of relevant 

8 safety and performance records and costs; 

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

10 (A) an examination of development costs 

11 and the levels of uncertainty associated with 

12 such estimated costs; 

13 (B) an examination of likely production 

14 and deployment costs and the levels of uncer15 tainty associated with such estimated costs; 

16 (C) an examination of likely operating and 

17 support costs and the levels of uncertainty asso18 ciated with such estimated costs; 

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

20 examination of likely disposal costs and the lev21 els of uncertainty associated with such esti22 mated costs; and 

23 (E) such additional measures the Com24 mandant determines to be necessary for appro25 priate evaluation of the capability or asset; and 
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1 (7) the business case for each viable alternative. 

2 SEC. 210. COST OVERRUNS AND DELAYS. 

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

4 report to the appropriate congressional committees as 

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

6 Chief Acquisition Officer of the Coast Guard becomes 

7 aware of the breach of an acquisition program baseline 

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

9 (1) a likely cost overrun greater than 10 per10 cent of the acquisition program baseline for that in11 dividual capability or asset or a class of capabilities 

12 or assets; 

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

14 delivery schedule for any individual capability or 

15 asset or class of capabilities or assets; or 

16 (3) an anticipated failure for any individual ca17 pability or asset or class of capabilities or assets to 

18 satisfy any key performance threshold or parameter 

19 under the acquisition program baseline. 

20 (b) CONTENT.—The report submitted under sub21 section (a) shall include— 

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

23 explanation of its cause; 

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

25 and schedule; 
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1 (3) an updated acquisition program baseline 

2 and the complete history of changes to the original 

3 acquisition program baseline; 

4 (4) the updated acquisition schedule and the 

5 complete history of changes to the original schedule; 

6 (5) a full life-cycle cost analysis for the capa7 bility or asset or class of capabilities or assets; 

8 (6) a remediation plan identifying corrective ac9 tions and any resulting issues or risks; and 

10 (7) a description of how progress in the remedi11 ation plan will be measured and monitored. 

12 (c) SUBSTANTIAL VARIANCES IN COSTS OR SCHED13 ULE.—If a likely cost overrun is greater than 20 percent 

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

15 and schedule described in the acquisition program baseline 

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

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

18 report a written certification, with a supporting expla19 nation, that— 

20 (1) the capability or asset or capability or asset 

21 class to be acquired under the program or project is 

22 essential to the accomplishment of Coast Guard mis23 sions; 

24 (2) there are no alternatives to such capability 

25 or asset or capability or asset class which will pro-
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1 vide equal or greater capability in both a more cost2 effective and timely manner; 

3 (3) the new acquisition schedule and estimates 

4 for total acquisition cost are reasonable; and 

5 (4) the management structure for the acquisi6 tion program is adequate to manage and control per7 formance, cost, and schedule. 

8 SEC. 211. REPORT ON FORMER COAST GUARD OFFICIALS 

9 EMPLOYED BY CONTRACTORS TO THE AGEN10 CY. 

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

12 31, 2009, and annually thereafter, the Comptroller Gen13 eral of the United States shall submit a report to the ap14 propriate congressional committees on the employment 

15 during the preceding year by Coast Guard contractors of 

16 individuals who were Coast Guard officials in the previous 

17 5-year period. The report shall assess the extent to which 

18 former Coast Guard officials were provided compensation 

19 by Coast Guard contractors in the preceding calendar 

20 year. 

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

22 report required by this section shall assess the extent to 

23 which former Coast Guard officials who receive compensa24 tion from Coast Guard contractors have been assigned by 

25 those contractors to work on contracts or programs be-
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1 tween the contractor and the Coast Guard, including con2 tracts or programs for which the former official personally 

3 had oversight responsibility or decision-making authority 

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

5 (c) CONFIDENTIALITY REQUIREMENT.—The report 

6 required by this subsection shall not include the names 

7 of the former Coast Guard officials who receive compensa8 tion from Coast Guard contractors. 

9 (d) ACCESS TO INFORMATION.—A Coast Guard con10 tractor shall provide the Comptroller General access to in11 formation requested by the Comptroller General for the 

12 purpose of conducting the study required by this section. 

13 (e) DEFINITIONS.—In this section: 

14 (1) COAST GUARD CONTRACTOR.—The term 

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

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

17 from the Coast Guard in the calendar year covered 

18 by the annual report. 

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

20 Guard official’’ includes former officers of the Coast 

21 Guard who were compensated at a rate of pay for 

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

23 to the date on which they separated from the Coast 

24 Guard, and former civilian employees of the Coast 

25 Guard who served at any level of the Senior Execu-
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1 tive Service under subchapter VIII of chapter 53 of 

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

3 prior to the date on which they separated from the 

4 Coast Guard. 

5 SEC. 212. DEPARTMENT OF DEFENSE CONSULTATION. 

6 (a) IN GENERAL.—The Commandant shall make ar7 rangements as appropriate with the Secretary of Defense 

8 for support in contracting and management of Coast 

9 Guard acquisition programs. The Commandant shall also 

10 seek opportunities to make use of Department of Defense 

11 contracts, and contracts of other appropriate agencies, to 

12 obtain the best possible price for capabilities and assets 

13 acquired for the Coast Guard. 

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

15 Commandant may enter into a memorandum of under16 standing or a memorandum of agreement with the Sec17 retary of the Navy to obtain the assistance of the Office 

18 of the Assistant Secretary of the Navy for Research, De19 velopment, and Acquisition, including the Navy Systems 

20 Commands, with the oversight of Coast Guard major ac21 quisition programs. Such memorandum of understanding 

22 or memorandum of agreement shall, at a minimum, pro23 vide for— 

24 (1) the exchange of technical assistance and 

25 support that the Coast Guard Chief Acquisition Offi-
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1 cer, Coast Guard Chief Engineer, and the Coast 

2 Guard Chief Information Officer may identify; 

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

4 expertise; and 

5 (3) the temporary assignment or exchange of 

6 personnel between the Coast Guard and the Office 

7 of the Assistant Secretary of the Navy for Research, 

8 Development, and Acquisition, including Naval Sys9 tems Commands, to facilitate the development of or10 ganic capabilities in the Coast Guard. 

11 (c) TECHNICAL REQUIREMENT APPROVAL PROCE12 DURES.—The Coast Guard Chief Acquisition Officer shall 

13 adopt, to the extent practicable, procedures that are simi14 lar to those used by the senior procurement executive of 

15 the Department of the Navy to approve all technical re16 quirements. 

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

18 of enactment of this Act, the Comptroller General shall 

19 transmit a report to the appropriate congressional com20 mittees that— 

21 (1) contains an assessment of current Coast 

22 Guard acquisition and management capabilities to 

23 manage Level 1 and Level 2 acquisitions; 

24 (2) includes recommendations as to how the 

25 Coast Guard can improve its acquisition manage-
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1 ment, either through internal reforms or by seeking 

2 acquisition expertise from the Department of De3 fense; and 

4 (3) addresses specifically the question of wheth5 er the Coast Guard can better leverage Department 

6 of Defense or other agencies’ contracts that would 

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

8 order to obtain the best possible price. 

9 TITLE III—COAST GUARD 

10 PERSONNEL 

11 SEC. 301. CHIEF ACQUISITION OFFICER. 

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

13 States Code, is amended by adding at the end the fol14 lowing: 

15 ‘‘§ 55. Chief Acquisition Officer 

16 ‘‘(a) ESTABLISHMENT OF CHIEF ACQUISITION OFFI17 CER.—There shall be in the Coast Guard a Chief Acquisi18 tion Officer selected by the Commandant who shall be a 

19 Rear Admiral or civilian from the Senior Executive Service 

20 (career reserved) and who meets the qualifications set 

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

22 shall serve at the Assistant Commandant level and have 

23 acquisition management as that individual’s primary duty. 

24 ‘‘(b) QUALIFICATIONS.— 
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1 ‘‘(1) The Chief Acquisition Officer and any 

2 Flag Officer serving in the Acquisitions Directorate 

3 shall be an acquisition professional with a program 

4 manager level III certification and must have at 

5 least 10 years experience in an acquisition position, 

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

7 following qualifying positions: 

8 ‘‘(A) Program executive officer. 

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

10 Level 2 acquisition. 

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

12 1 or Level 2 acquisition. 

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

14 Level 2 acquisition. 

15 ‘‘(E) Any other acquisition position of sig16 nificant responsibility in which the primary du17 ties are supervisory or management duties. 

18 ‘‘(2) The Commandant shall periodically publish 

19 a list of the positions designated under this sub20 section. 

21 ‘‘(c) AUTHORITY AND FUNCTIONS OF THE CHIEF AC22 QUISITION OFFICER.—The functions of the Chief Acquisi23 tion Officer shall include— 

24 ‘‘(1) monitoring the performance of programs 

25 and projects on the basis of applicable performance 
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1 measurements and advising the Commandant, 

2 through the chain of command, regarding the appro3 priate business strategy to achieve the missions of 

4 the Coast Guard; 

5 ‘‘(2) maximizing the use of full and open com6 petition at the prime contract and subcontract levels 

7 in the acquisition of property, capabilities, assets, 

8 and services by the Coast Guard by establishing poli9 cies, procedures, and practices that ensure that the 

10 Coast Guard receives a sufficient number of sealed 

11 bids or competitive proposals from responsible 

12 sources to fulfill the Government’s requirements, in13 cluding performance and delivery schedules, at the 

14 lowest cost or best value considering the nature of 

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

16 ‘‘(3) making acquisition decisions in concur17 rence with the technical authority of the Coast 

18 Guard, as designated by the Commandant, and con19 sistent with all other applicable laws and decisions 

20 establishing procedures within the Coast Guard; 

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

22 specifications in instances in which performance 

23 based contracting is used; 

24 ‘‘(5) managing the direction of acquisition pol25 icy for the Coast Guard, including implementation of 
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1 the unique acquisition policies, regulations, and 

2 standards of the Coast Guard; 

3 ‘‘(6) developing and maintaining an acquisition 

4 career management program in the Coast Guard to 

5 ensure that there is an adequate acquisition work6 force; 

7 ‘‘(7) assessing the requirements established for 

8 Coast Guard personnel regarding knowledge and 

9 skill in acquisition resources and management and 

10 the adequacy of such requirements for facilitating 

11 the achievement of the performance goals established 

12 for acquisition management; 

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

14 hiring, training, and professional development; and 

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

16 chain of command, on the progress made in improv17 ing acquisition management capability.’’. 

18 (b) APPLICATION OF QUALIFICATION REQUIRE19 MENT.—Section 55(b) of title 14, United States Code, as 

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

21 2011. 

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

23 at the beginning of such chapter is amended by adding 

24 at the end the following: 

‘‘55. Chief Acquisition Officer.’’. 
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1 (d) ELEVATION OF DISPUTES TO THE CHIEF ACQUI2 SITION OFFICER.—Within 45 days after the elevation to 

3 the Chief Acquisition Officer of any design or other dis4 pute regarding a Level 1 or Level 2 acquisition, the Com5 mandant shall provide to the appropriate congressional 

6 committees a detailed description of the issue and the ra7 tionale underlying the decision taken by the Chief Acquisi8 tion Officer to resolve the issue. 

9 (e) SPECIAL RATE SUPPLEMENTS.— 

10 (1) REQUIREMENT TO ESTABLISH.—Not later 

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

12 and in accordance with part 9701.333 of title 5, 

13 Code of Federal Regulations, the Commandant shall 

14 establish special rate supplements that provide high15 er pay levels for employees necessary to carry out 

16 the amendment made by this section. 

17 (2) SUBJECT TO APPROPRIATIONS.—The re18 quirement under paragraph (1) is subject to the 

19 availability of appropriations. 

20 SEC. 302. IMPROVEMENTS IN COAST GUARD ACQUISITION 

21 MANAGEMENT. 

22 (a) PROGRAM AND PROJECT MANAGERS.—An indi23 vidual may not be assigned as the program manager for 

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

25 a Level III acquisition certification as a program manager. 
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1 (b) INTEGRATED PRODUCT TEAMS.—Integrated 

2 product teams, and all teams that oversee integrated prod3 uct teams, shall be chaired by officers, members, or em4 ployees of the Coast Guard. 

5 (c) TECHNICAL AUTHORITY.—The Commandant 

6 shall maintain or designate the technical authority to es7 tablish, approve, and maintain technical requirements. 

8 Any such designation shall be made in writing and may 

9 not be delegated to the authority of the Chief Acquisition 

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

11 Code. 

12 (d) DESIGNATION OF POSITIONS IN THE ACQUISI13 TION WORKFORCE.— 

14 (1) IN GENERAL.—The Commandant shall des15 ignate a sufficient number of positions to be in the 

16 Coast Guard’s acquisition workforce to perform ac17 quisition-related functions at Coast Guard head18 quarters and field activities. 

19 (2) REQUIRED POSITIONS.—In designating po20 sitions under subsection (a), the Commandant shall 

21 include, at a minimum, positions encompassing the 

22 following competencies and functions: 

23 (A) Program management. 

24 (B) Systems planning, research, develop25 ment, engineering, and testing. 
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1 (C) Procurement, including contracting. 

2 (D) Industrial and contract property man3 agement. 

4 (E) Life-cycle logistics. 

5 (F) Quality control and assurance. 

6 (G) Manufacturing and production. 

7 (H) Business, cost estimating, financial 

8 management, and auditing. 

9 (I) Acquisition education, training, and ca10 reer development. 

11 (J) Construction and facilities engineering. 

12 (K) Testing and evaluation. 

13 (3) ACQUISITION MANAGEMENT HEADQUARTER

14 ACTIVITIES.—The Commandant shall also designate 

15 as positions in the acquisition workforce under para16 graph (1) those acquisition-related positions located 

17 at Coast Guard headquarters units. 

18 (4) APPROPRIATE EXPERTISE REQUIRED.—The 

19 Commandant shall ensure that each individual as20 signed to a position in the acquisition workforce has 

21 the appropriate expertise to carry out the respon22 sibilities of that position. 

23 (e) MANAGEMENT INFORMATION SYSTEM.— 

24 (1) IN GENERAL.—The Commandant shall es25 tablish a management information system capability 
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1 to improve acquisition workforce management and 

2 reporting. 

3 (2) INFORMATION MAINTAINED.—Information 

4 maintained with such capability shall include the fol5 lowing standardized information on individuals as6 signed to positions in the workforce: 

7 (A) Qualifications, assignment history, and 

8 tenure of those individuals assigned to positions 

9 in the acquisition workforce or holding acquisi10 tion-related certifications. 

11 (B) Promotion rates for officers and mem12 bers of the Coast Guard in the acquisition 

13 workforce. 

14 (f) REPORT ON ADEQUACY OF ACQUISITION WORK15 FORCE.— 

16 (1) IN GENERAL.—The Commandant shall re17 port to the Congress by July 1 of each year on the 

18 scope of the acquisition activities to be performed in 

19 the next fiscal year and on the adequacy of the cur20 rent acquisition workforce to meet that anticipated 

21 workload. 

22 (2) CONTENTS.—The report shall— 

23 (A) specify the number of officers, mem24 bers, and employees of the Coast Guard cur-
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1 rently and planned to be assigned to each posi2 tion designated under subsection (d); and 

3 (B) identify positions that are understaffed 

4 to meet the anticipated acquisition workload, 

5 and actions that will be taken to correct such 

6 understaffing. 

7 (g) APPOINTMENTS TO ACQUISITION POSITIONS.— 

8 The Commandant shall ensure that no requirement or 

9 preference for officers or members of the Coast Guard is 

10 used in the consideration of persons for positions in the 

11 acquisition workforce. 

12 (h) CAREER PATHS.— 

13 (1) IDENTIFICATION OF CAREER PATHS.—To 

14 establish acquisition management as a core com15 petency of the Coast Guard, the Commandant 

16 shall— 

17 (A) ensure that career paths for officers, 

18 members, and employees of the Coast Guard 

19 who wish to pursue careers in acquisition are 

20 identified in terms of the education, training, 

21 experience, and assignments necessary for ca22 reer progression of those officers, members, and 

23 employees to the most senior positions in the 

24 acquisition workforce; and 
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1 (B) publish information on such career 

2 paths. 

3 (2) PROMOTION PARITY.—The Commandant 

4 shall ensure that promotion parity is established for 

5 officers and members of the Coast Guard who have 

6 been assigned to the acquisition workforce relative to 

7 officers and members who have not been assigned to 

8 the acquisition workforce. 

9 (i) BALANCED WORKFORCE POLICY.—In the devel10 opment of acquisition workforce policies under this section 

11 with respect to any civilian employees or applicants for 

12 employment, the Commandant shall, consistent with the 

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

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

15 consideration the need to maintain a balanced workforce 

16 in which women and members of racial and ethnic minor17 ity groups are appropriately represented in Government 

18 service. 

19 (j) GUIDANCE ON TENURE AND ACCOUNTABILITY OF

20 PROGRAM MANAGERS.— 

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

22 year after the date of enactment of this Act, the 

23 Commandant shall issue guidance to address the 

24 qualifications, resources, responsibilities, tenure, and 

25 accountability of program managers for the manage-
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1 ment of acquisition programs and projects. The 

2 guidance shall address, at a minimum— 

3 (A) the qualifications that shall be required 

4 of program managers, including the number of 

5 years of acquisition experience and the profes6 sional training levels to be required of those ap7 pointed to program management positions; 

8 (B) authorities available to program man9 agers, including, to the extent appropriate, the 

10 authority to object to the addition of new pro11 gram requirements that would be inconsistent 

12 with the parameters established for an acquisi13 tion program; and 

14 (C) the extent to which a program man15 ager who initiates a new program or project will 

16 continue in management of that program or 

17 project without interruption until the delivery of 

18 the first production units of the program. 

19 (2) STRATEGY.— 

20 (A) IN GENERAL.—Not later than 18 

21 months after the date of enactment of this Act, 

22 the Commandant shall develop a comprehensive 

23 strategy for enhancing the role of Coast Guard 

24 program managers in developing and carrying 

25 out acquisition programs. 
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1 (B) MATTERS TO BE ADDRESSED.—The 

2 strategy required by this section shall address, 

3 at a minimum— 

4 (i) the creation of a specific career 

5 path and career opportunities for individ6 uals who are or may become program man7 agers, including the rotational assignments 

8 that will be provided to program managers; 

9 (ii) the provision of enhanced training 

10 and educational opportunities for individ11 uals who are or may become program man12 agers; 

13 (iii) the provision of mentoring sup14 port to current and future program man15 agers by experienced senior executives and 

16 program managers within the Coast 

17 Guard, and through rotational assignments 

18 to the Department of Defense; 

19 (iv) the methods by which the Coast 

20 Guard will collect and disseminate best 

21 practices and lessons learned on systems 

22 acquisition to enhance program manage23 ment throughout the Coast Guard; 

24 (v) the templates and tools that will 

25 be used to support improved data gath-
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1 ering and analysis for program manage2 ment and oversight purposes, including the 

3 metrics that will be utilized to assess the 

4 effectiveness of Coast Guard program 

5 managers in managing systems acquisition 

6 efforts; 

7 (vi) a description in detail of how the 

8 Coast Guard will promote a balanced work9 force in which women and members of ra10 cial and ethnic minority groups are appro11 priately represented in Government service; 

12 and 

13 (vii) the methods by which the ac14 countability of program managers for the 

15 results of acquisition programs will be in16 creased. 

17 SEC. 303. RECOGNITION OF COAST GUARD PERSONNEL 

18 FOR EXCELLENCE IN ACQUISITION. 

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

20 date of enactment of this Act, the Commandant shall com21 mence implementation of a program to recognize excellent 

22 performance by individuals and teams comprised of offi23 cers, members, and employees of the Coast Guard that 

24 contributed to the long-term success of a Coast Guard ac25 quisition program or project. 
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1 (b) ELEMENTS.—The program required by sub2 section (a) shall include the following: 

3 (1) Specific award categories, criteria, and eligi4 bility and manners of recognition. 

5 (2) Procedures for the nomination by personnel 

6 of the Coast Guard of individuals and teams com7 prised of officers, members, and employees of the 

8 Coast Guard for recognition under the program. 

9 (3) Procedures for the evaluation of nomina10 tions for recognition under the program by one or 

11 more panels of individuals from the Government, 

12 academia, and the private sector who have such ex13 pertise and are appointed in such manner as the 

14 Commandant shall establish for the purposes of this 

15 program. 

16 (c) AWARD OF CASH BONUSES.—As part of the pro17 gram required by subsection (a), the Commandant, sub18 ject to the availability of appropriations, may award to any 

19 individual recognized pursuant to the program a cash 

20 bonus to the extent that the performance of such indi21 vidual so recognized warrants the award of such bonus. 

22 SEC. 304. ENHANCED STATUS QUO OFFICER PROMOTION 

23 SYSTEM. 

24 Chapter 11 of title 14, United States Code, is amend25 ed— 
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1 (1) in section 253(a)— 

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

3 and 

4 (B) by striking ‘‘, and the number of offi5 cers the board may recommend for promotion’’; 

6 (2) in section 258— 

7 (A) by inserting ‘‘(a) IN GENERAL.—’’ be8 fore the existing text; 

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

10 striking the colon at the end of the material 

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

12 and 

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

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

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

16 pursuant to subsection (a), the Commandant may 

17 furnish the selection board— 

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

19 of the Coast Guard for officers having par20 ticular skills, including direction relating to the 

21 need for a minimum number of officers with 

22 particular skills within a specialty; and 

23 ‘‘(B) any other guidance that the Com24 mandant believes may be necessary to enable 

25 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. 

Passed the House of Representatives July 29, 2009. 

Attest: 

Clerk. 

111TH CONGRESS 

1ST SESSION H. R. 1665 

AN ACT 

To structure Coast Guard acquisition processes and 

policies, and for other purposes.