```

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1194 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1194

To reauthorize the Coast Guard for fiscal years 2010 and 2011, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              June 4, 2009

    Ms. Cantwell (for herself, Ms. Snowe, Mr. Rockefeller, and Mrs. 
  Hutchison) introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
To reauthorize the Coast Guard for fiscal years 2010 and 2011, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Coast Guard Authorization Act for 
Fiscal Years 2010 and 2011''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
                        TITLE I--AUTHORIZATIONS

Sec. 101. Authorization of appropriations.
Sec. 102. Authorized levels of military strength and training.
                        TITLE II--ADMINISTRATION

Sec. 201. Authority to distribute funds through grants, cooperative 
                            agreements, and contracts to maritime 
                            authorities and organizations.
Sec. 202. Assistance to foreign governments and maritime authorities.
Sec. 203. Cooperative agreements for industrial activities.
Sec. 204. Defining Coast Guard vessels and aircraft.
                        TITLE III--ORGANIZATION

Sec. 301. Vice commandant; vice admirals.
Sec. 302. Number and distribution of commissioned officers on the 
                            active duty promotion list.
                          TITLE IV--PERSONNEL

Sec. 401. Leave retention authority.
Sec. 402. Legal assistance for Coast Guard reservists.
Sec. 403. Reimbursement for certain medical related expenses.
Sec. 404. Reserve commissioned warrant officer to lieutenant program.
Sec. 405. Enhanced status quo officer promotion system.
Sec. 406. Appointment of civilian Coast Guard judges.
Sec. 407. Coast Guard participation in the Armed Forces Retirement Home 
                            system.
                      TITLE V--ACQUISITION REFORM

Sec. 501. Chief Acquisition Officer.
Sec. 502. Acquisitions.
                       ``CHAPTER 15--ACQUISITIONS

                   ``Subchapter 1--General Provisions

    ``Sec.
    ``561. Acquisition directorate
    ``562. Senior acquisition leadership team
    ``563. Improvements in Coast Guard acquisition management
    ``564. Recognition of Coast Guard personnel for excellence in 
                            acquisition
    ``565. Prohibition on use of lead systems integrators
    ``566. Required contract terms
    ``567. Department of Defense consultation
    ``568. Undefinitized contractual actions
      ``Subchapter 2--Improved Acquisition Process and Procedures

    ``Sec.
    ``571. Identification of major system acquisitions
    ``572. Acquisition
    ``573. Preliminary development and demonstration
    ``574. Acquisition, production, deployment, and support
    ``575. Acquisition program baseline breach
                      ``Subchapter 3--Definitions

    ``Sec.
    ``581. Definitions''

Sec. 503. Report and guidance on excess pass-through charges.
                   TITLE VI--SHIPPING AND NAVIGATION

Sec. 601. Technical amendments to chapter 313 of title 46, United 
                            States Code.
Sec. 602. Clarification of rulemaking authority.
Sec. 603. Coast Guard maintenance of LORAN-C navigation system.
Sec. 604. Icebreakers.
Sec. 605. Vessel size limits.
                      TITLE VII--VESSEL CONVEYANCE

Sec. 701. Short title.
Sec. 702. Conveyance of Coast Guard vessels for public purposes.

                        TITLE I--AUTHORIZATIONS

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

    Funds are authorized to be appropriated for necessary expenses of 
the Coast Guard for each of fiscal years 2010 and 2011 as follows:
            (1) For the operation and maintenance of the Coast Guard, 
        $6,556,188,000, of which $24,500,000 is authorized to be 
        derived from the Oil Spill Liability Trust Fund to carry out 
        the purposes of section 1012(a)(5) of the Oil Pollution Act of 
        1990.
            (2) For the acquisition, construction, renovation, and 
        improvement of aids to navigation, shore and offshore 
        facilities, vessels, and aircraft, including equipment related 
        thereto, $1,383,980,000, of which $20,000,000 shall be derived 
        from the Oil Spill Liability Trust Fund to carry out the 
        purposes of section 1012(a)(5) of the Oil Pollution Act of 
        1990, to remain available until expended; such funds 
        appropriated for personnel compensation and benefits and 
        related costs of acquisition, construction, and improvements 
        shall be available for procurement of services necessary to 
        carry out the Integrated Deepwater Systems program.
            (3) For retired pay (including the payment of obligations 
        otherwise chargeable to lapsed appropriations for this 
        purpose), payments under the Retired Serviceman's Family 
        Protection and Survivor Benefit Plans, and payments for medical 
        care of retired personnel and their dependents under chapter 55 
        of title 10, United States Code, $1,361,245,000.
            (4) For environmental compliance and restoration functions 
        under chapter 19 of title 14, United States Code, $13,198,000.
            (5) For research, development, test, and evaluation 
        programs related to maritime technology, $19,745,000.
            (6) For operation and maintenance of the Coast Guard 
        reserve program, $133,632,000.

SEC. 102. AUTHORIZED LEVELS OF MILITARY STRENGTH AND TRAINING.

    (a) Active Duty Strength.--The Coast Guard is authorized an end-of-
year strength of active duty personnel of 49,954 as of September 30, 
2010, and 52,452 as of September 30, 2011.
    (b) Military Training Student Loads.--The Coast Guard is authorized 
average military training student loads as follows:
            (1) For recruit and special training, 2,500 student years 
        for fiscal year 2010, and 2,625 student years for fiscal year 
        2011.
            (2) For flight training, 170 student years for fiscal year 
        2010 and 179 student years for fiscal year 2011.
            (3) For professional training in military and civilian 
        institutions, 350 student years for fiscal year 2010 and 368 
        student years for fiscal year 2011.
            (4) For officer acquisition, 1,300 student years for fiscal 
        year 2010 and 1,365 student years for fiscal year 2011.

                        TITLE II--ADMINISTRATION

SEC. 201. AUTHORITY TO DISTRIBUTE FUNDS THROUGH GRANTS, COOPERATIVE 
              AGREEMENTS, AND CONTRACTS TO MARITIME AUTHORITIES AND 
              ORGANIZATIONS.

    Section 149 of title 14, United States Code, is amended by adding 
at the end the following:
    ``(c) Grants to International Maritime Organizations.--The 
Commandant may, after consultation with the Secretary of State, make 
grants to, or enter into cooperative agreements, contracts, or other 
agreements with, international maritime organizations for the purpose 
of acquiring information or data about merchant vessel inspections, 
security, safety and environmental requirements, classification, and 
port state or flag state law enforcement or oversight.''.

SEC. 202. ASSISTANCE TO FOREIGN GOVERNMENTS AND MARITIME AUTHORITIES.

    Section 149 of title 14, United States Code, as amended by section 
201, is further amended by adding at the end the following:
    ``(d) Authorized Activities.--
            ``(1) The Commandant may transfer or expend funds from any 
        appropriation available to the Coast Guard for--
                    ``(A) the activities of traveling contact teams, 
                including any transportation expense, translation 
                services expense, or administrative expense that is 
                related to such activities;
                    ``(B) the activities of maritime authority liaison 
                teams of foreign governments making reciprocal visits 
                to Coast Guard units, including any transportation 
                expense, translation services expense, or 
                administrative expense that is related to such 
                activities;
                    ``(C) seminars and conferences involving members of 
                maritime authorities of foreign governments;
                    ``(D) distribution of publications pertinent to 
                engagement with maritime authorities of foreign 
                governments; and
                    ``(E) personnel expenses for Coast Guard civilian 
                and military personnel to the extent that those 
                expenses relate to participation in an activity 
                described in subparagraph (C) or (D).
            ``(2) An activity may not be conducted under this 
        subsection with a foreign country unless the Secretary of State 
        approves the conduct of such activity in that foreign 
        country.''.

SEC. 203. COOPERATIVE AGREEMENTS FOR INDUSTRIAL ACTIVITIES.

    Section 151 of title 14, United States Code, is amended--
            (1) by inserting ``(a) In General.--'' before ``All 
        orders''; and
            (2) by adding at the end the following:
    ``(b) Orders and Agreements for Industrial Activities.--Under this 
section, the Coast Guard industrial activities may accept orders and 
enter into reimbursable agreements with establishments, agencies, and 
departments of the Department of Defense and the Department of Homeland 
Security.''.

SEC. 204. DEFINING COAST GUARD VESSELS AND AIRCRAFT.

    (a) In General.--Chapter 17 of title 14, United States Code, is 
amended by inserting after section 638 the following new section:
``Sec. 638a. Coast Guard vessels and aircraft defined
    ``For the purposes of sections 637 and 638 of this title, the term 
Coast Guard vessels and aircraft means--
            ``(1) any vessel or aircraft owned, leased, transferred to, 
        or operated by the Coast Guard and under the command of a Coast 
        Guard member; or
            ``(2) any other vessel or aircraft under the tactical 
        control of the Coast Guard on which one or more members of the 
        Coast Guard are assigned and conducting Coast Guard 
        missions.''.
    (b) Clerical Amendment.--The table of contents for chapter 17 of 
such title is amended by inserting after the item relating to section 
638 the following:

``638a. Coast Guard vessels and aircraft defined.''.

                        TITLE III--ORGANIZATION

SEC. 301. VICE COMMANDANT; VICE ADMIRALS.

     (a) Vice Commandant.--The fourth sentence of section 47 of title 
14, United States Code, is amended by striking ``vice admiral'' and 
inserting ``admiral''.
    (b) Vice Admirals.--Section 50 of such title is amended to read as 
follows:
``Sec. 50. Vice admirals
    ``(a)(1) The President may designate no more than 4 positions of 
importance and responsibility that shall be held by officers who--
            ``(A) while so serving, shall have the grade of vice 
        admiral, with the pay and allowances of that grade; and
            ``(B) shall perform such duties as the Commandant may 
        prescribe.
    ``(2) The President may appoint, by and with the advice and consent 
of the Senate, and reappoint, by and with the advice and consent of the 
Senate, to any such position an officer of the Coast Guard who is 
serving on active duty above the grade of captain. The Commandant shall 
make recommendations for such appointments.
    ``(b)(1) The appointment and the grade of vice admiral shall be 
effective on the date the officer assumes that duty and, except as 
provided in paragraph (2) of this subsection or in section 51(d) of 
this title, shall terminate on the date the officer is detached from 
that duty.
    ``(2) An officer who is appointed to a position designated under 
subsection (a) shall continue to hold the grade of vice admiral--
            ``(A) while under orders transferring the officer to 
        another position designated under subsection (a), beginning on 
        the date the officer is detached from that duty and terminating 
        on the date before the day the officer assumes the subsequent 
        duty, but not for more than 60 days;
            ``(B) while hospitalized, beginning on the day of the 
        hospitalization and ending on the day the officer is discharged 
        from the hospital, but not for more than 180 days; and
            ``(C) while awaiting retirement, beginning on the date the 
        officer is detached from duty and ending on the day before the 
        officer's retirement, but not for more than 60 days.
    ``(c)(1) An appointment of an officer under subsection (a) does not 
vacate the permanent grade held by the officer.
    ``(2) An officer serving in a grade above rear admiral who holds 
the permanent grade of rear admiral (lower half) shall be considered 
for promotion to the permanent grade of rear admiral as if the officer 
was serving in the officer's permanent grade.
    ``(d) Whenever a vacancy occurs in a position designated under 
subsection (a), the Commandant shall inform the President of the 
qualifications needed by an officer serving in that position or office 
to carry out effectively the duties and responsibilities of that 
position or office.''.
    (c) Repeal.--Section 50a of such title is repealed.
    (d) Conforming Amendments.--Section 51 of such title is amended--
            (1) by striking subsections (a), (b), and (c) and inserting 
        the following:
    ``(a) An officer, other than the Commandant, who, while serving in 
the grade of admiral or vice admiral, is retired for physical 
disability shall be placed on the retired list with the highest grade 
in which that officer served.
    ``(b) An officer, other than the Commandant, who is retired while 
serving in the grade of admiral or vice admiral, or who, after serving 
at least 2\1/2\ years in the grade of admiral or vice admiral, is 
retired while serving in a lower grade, may in the discretion of the 
President, be retired with the highest grade in which that officer 
served.
     ``(c) An officer, other than the Commandant, who, after serving 
less than 2\1/2\ years in the grade of admiral or vice admiral, is 
retired while serving in a lower grade, shall be retired in his 
permanent grade.''; and
            (2) by striking ``Area Commander, or Chief of Staff'' in 
        subsection (d)(2) and inserting ``or Vice Admiral''.
    (e) Clerical Amendments.--
            (1) The section caption for section 47 of such title is 
        amended to read as follows:
``Sec. 47. Vice commandant; appointment''.
            (2) The table of contents for chapter 3 of such title is 
        amended--
                    (A) by striking the item relating to section 47 and 
                inserting the following:

``47. Vice Commandant; appointment.'';
                    (B) by striking the item relating to section 50a; 
                and
                    (C) by striking the item relating to section 50 and 
                inserting the following:

``50. Vice admirals.''.
    (f) Technical Correction.--Section 47 of such title is further 
amended by striking ``subsection'' in the fifth sentence and inserting 
``section''.
    (g) Treatment of Incumbents; Transition.--
            (1) Notwithstanding any other provision of law, the officer 
        who, on the date of enactment of this Act, is serving as Vice 
        Commandant--
                    (A) shall continue to serve as Vice Commandant;
                    (B) shall have the grade of admiral with pay and 
                allowances of that grade; and
                    (C) shall not be required to be reappointed by 
                reason of the enactment of that Act.
            (2) Notwithstanding any other provision of law, an officer 
        who, on the date of enactment of this Act, is serving as Chief 
        of Staff, Commander, Atlantic Area, or Commander, Pacific 
        Area--
                    (A) shall continue to have the grade of vice 
                admiral with pay and allowance of that grade until such 
                time that the officer is relieved of his duties and 
                appointed and confirmed to another position as a vice 
                admiral or admiral; and
                    (B) for the purposes of transition, may continue, 
                for not more than 1 year after the date of enactment of 
                this Act, to perform the duties of the officer's former 
                position and any other such duties that the Commandant 
                prescribes.

SEC. 302. NUMBER AND DISTRIBUTION OF COMMISSIONED OFFICERS ON THE 
              ACTIVE DUTY PROMOTION LIST.

    (a) In General.--Section 42 of title 14, United States Code, is 
amended--
            (1) by striking subsections (a), (b), and (c) and inserting 
        the following:
    ``(a) The total number of Coast Guard commissioned officers on the 
active duty promotion list, excluding warrant officers, shall not 
exceed 7,200. This total number may be temporarily increased up to 2 
percent for no more than the 60 days that follow the commissioning of a 
Coast Guard Academy class.
     ``(b) The total number of commissioned officers authorized by this 
section shall be distributed in grade not to exceed the following 
percentages:
            ``(1) 0.375 percent for rear admiral.
            ``(2) 0.375 percent for rear admiral (lower half).
            ``(3) 6.0 percent for captain.
            ``(4) 15.0 percent for commander.
            ``(5) 22.0 percent for lieutenant commander.
The Secretary shall prescribe the percentages applicable to the grades 
of lieutenant, lieutenant (junior grade), and ensign. The Secretary 
may, as the needs of the Coast Guard require, reduce any of the 
percentages set forth in paragraphs (1) through (5) and apply that 
total percentage reduction to any other lower grade or combination of 
lower grades.
    ``(c) The Secretary shall, at least once a year, compute the total 
number of commissioned officers authorized to serve in each grade by 
applying the grade distribution percentages of this section to the 
total number of commissioned officers listed on the current active duty 
promotion list. In making such calculations, any fraction shall be 
rounded to the nearest whole number. The number of commissioned 
officers on the active duty promotion list serving with other 
departments or agencies on a reimbursable basis or excluded under the 
provisions of section 324(d) of title 49, shall not be counted against 
the total number of commissioned officers authorized to serve in each 
grade.'';
            (2) by striking subsection (e) and inserting the following:
    ``(e) The number of officers authorized to be serving on active 
duty in each grade of the permanent commissioned teaching staff of the 
Coast Guard Academy and of the Reserve serving in connection with 
organizing, administering, recruiting, instructing, or training the 
reserve components shall be prescribed by the Secretary.''; and
            (3) by striking the caption of such section and inserting 
        the following:
``Sec. 42. Number and distribution of commissioned officers on the 
              active duty promotion list''.
    (b) Clerical Amendment.--The table of contents for chapter 3 of 
such title is amended by striking the item relating to section 42 and 
inserting the following:

``42. Number and distribution of commissioned officers on the active 
                            duty promotion list.''.

                          TITLE IV--PERSONNEL

SEC. 401. LEAVE RETENTION AUTHORITY.

    Section 701(f)(2) of title 10, United States Code, is amended by 
inserting ``or a declaration of a major disaster or emergency by the 
President under the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (Public Law 93-288, 42 U.S.C. 5121 et seq.)'' after 
``operation''.

SEC. 402. LEGAL ASSISTANCE FOR COAST GUARD RESERVISTS.

    Section 1044(a)(4) of title 10, United States Code, is amended--
            (1) by striking ``(as determined by the Secretary of 
        Defense),'' and inserting ``(as determined by the Secretary of 
        Defense and the Secretary of the department in which the Coast 
        Guard is operating, with respect to the Coast Guard when it is 
        not operating as a service of the Navy),''; and
            (2) by striking ``prescribed by the Secretary of Defense,'' 
        and inserting ``prescribed by Secretary of Defense and the 
        Secretary of the department in which the Coast Guard is 
        operating, with respect to the Coast Guard when it is not 
        operating as a service of the Navy,''.

SEC. 403. REIMBURSEMENT FOR CERTAIN MEDICAL-RELATED TRAVEL EXPENSES.

    Section 1074i(a) of title 10, United States Code, is amended--
            (1) by striking ``In General.--In'' and inserting ``In 
        General.--(1) In''; and
            (2) by adding at the end the following:
    ``(2) In any case in which a covered beneficiary resides on an 
INCONUS island that lacks public access roads to the mainland and is 
referred by a primary care physician to a specialty care provider on 
the mainland who provides services less than 100 miles from the 
location in which the beneficiary resides, the Secretary shall 
reimburse the reasonable travel expenses of the covered beneficiary, 
and, when accompaniment by an adult is necessary, for a parent or 
guardian of the covered beneficiary or another member of the covered 
beneficiary's family who is at least 21 years of age.''.

SEC. 404. RESERVE COMMISSIONED WARRANT OFFICER TO LIEUTENANT PROGRAM.

    Section 214(a) of title 14, United States Code, is amended to read 
as follows:
    ``(a) The President may appoint temporary commissioned officers--
            ``(1) in the Regular Coast Guard in a grade, not above 
        lieutenant, appropriate to their qualifications, experience, 
        and length of service, as the needs of the Coast Guard may 
        require, from among the commissioned warrant officers, warrant 
        officers, and enlisted members of the Coast Guard, and from 
        licensed officers of the United States merchant marine; and
            ``(2) in the Coast Guard Reserve in a grade, not above 
        lieutenant, appropriate to their qualifications, experience, 
        and length of service, as the needs of the Coast Guard may 
        require, from among the commissioned warrant officers of the 
        Coast Guard Reserve.''.

SEC. 405. ENHANCED STATUS QUO OFFICER PROMOTION SYSTEM.

    (a) Section 253(a) of title 14, United States Code, is amended--
            (1) by inserting ``and'' after ``considered,''; and
            (2) by striking ``consideration, and the number of officers 
        the board may recommend for promotion'' and inserting 
        ``consideration''.
    (b) Section 258 of such title is amended--
            (1) by inserting ``(a)'' before ``The Secretary''; and
            (2) by adding at the end the following:
    ``(b) In addition to the information provided pursuant to 
subsection (a), the Secretary may furnish the selection board--
            ``(1) specific direction relating to the needs of the 
        service for officers having particular skills, including 
        direction relating to the need for a minimum number of officers 
        with particular skills within a specialty; and
            ``(2) such other guidance that the Secretary believes may 
        be necessary to enable the board to properly perform its 
        functions.
Selections made based on the direction and guidance provided under this 
subsection shall not exceed the maximum percentage of officers who may 
be selected from below the announced promotion zone at any given 
selection board convened under section 251 of this title.''.
    (c) Section 259(a) of such title is amended by striking ``board'' 
the second place it appears and inserting ``board, giving due 
consideration to the needs of the service for officers with particular 
skills so noted in the specific direction furnished pursuant to section 
258 of this title,''.
    (d) Section 260(b) of such title is amended by inserting ``to meet 
the needs of the service (as noted in the specific direction furnished 
the board under section 258 of this title)'' after ``qualified for 
promotion''.

SEC. 406. APPOINTMENT OF CIVILIAN COAST GUARD JUDGES.

    Section 875 of the Homeland Security Act of 2002 (6 U.S.C. 455) is 
amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:
    ``(c) Appointment of Judges.--The Secretary may appoint civilian 
employees of the Department of Homeland Security as appellate military 
judges, available for assignment to the Coast Guard Court of Criminal 
Appeals as provided for in section 866(a) of title 10, United States 
Code.''.

SEC. 407. COAST GUARD PARTICIPATION IN THE ARMED FORCES RETIREMENT HOME 
              SYSTEM.

    (a) Eligibility under the Armed Forces Retirement Home Act.--
Section 1502 of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 
401) is amended--
            (1) by striking ``does not include the Coast Guard when it 
        is not operating as a service of the Navy.'' in paragraph (4) 
        and inserting ``has the meaning given such term in section 
        101(4) of title 10.'';
            (2) by striking ``and'' in paragraph (5)(C);
            (3) by striking ``Affairs.'' in paragraph (5)(D) and 
        inserting ``Affairs; and'';
            (4) by adding at the end of paragraph (5) the following:
                    ``(E) the Assistant Commandant of the Coast Guard 
                for Human Resources.''; and
            (5) by adding at the end of paragraph (6) the following:
                    ``(E) The Master Chief Petty Officer of the Coast 
                Guard.''.
    (b) Deductions.--
            (1) Section 2772 of title 10, United States Code, is 
        amended--
                    (A) by striking ``of the military department'' in 
                subsection (a);
                    (B) by striking ``Armed Forces Retirement Home 
                Board'' in subsection (b) and inserting ``Chief 
                Operating Officer of the Armed Forces Retirement 
                Home''; and
                    (C) by striking subsection (c).
            (2) Section 1007(i) of title 37, United States Code, is 
        amended--
                    (A) by striking ``Armed Forces Retirement Home 
                Board,'' in paragraph (3) and inserting ``Chief 
                Operating Officer of the Armed Forces Retirement 
                Home,''; and
                    (B) by striking ``does not include the Coast Guard 
                when it is not operating as a service of the Navy.'' in 
                paragraph (4) and inserting ``has the meaning given 
                such term in section 101(4) of title 10.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the first day of the first pay period beginning on or after 
January 1, 2010.

                      TITLE V--ACQUISITION REFORM

SEC. 501. CHIEF ACQUISITION OFFICER.

    (a) In General.--Chapter 3 of title 14, United States Code, is 
amended by adding at the end the following:
``Sec. 55. Chief Acquisition Officer
    ``(a) In General.--There shall be in the Coast Guard a Chief 
Acquisition Officer selected by the Commandant who shall be a Rear 
Admiral or civilian from the Senior Executive Service (career 
reserved). The Chief Acquisition Officer shall serve at the Assistant 
Commandant level and have acquisition management as that individual's 
primary duty.
    ``(b) Qualifications.--The Chief Acquisition Officer shall be an 
acquisition professional with a Level III certification and must have 
at least 10 years experience in an acquisition position, of which at 
least 4 years were spent as--
            ``(1) the program executive officer;
            ``(2) the program manager of a Level 1 or Level 2 
        acquisition project or program;
            ``(3) the deputy program manager of a Level 1 or Level 2 
        acquisition; or
            ``(4) a combination of such positions.
    ``(c) Functions of the Chief Acquisition Officer.--The functions of 
the Chief Acquisition Officer include--
            ``(1) monitoring the performance of programs and projects 
        on the basis of applicable performance measurements and 
        advising the Commandant, through the chain of command, 
        regarding the appropriate business strategy to achieve the 
        missions of the Coast Guard;
            ``(2) maximizing the use of full and open competition at 
        the prime contract and subcontract levels in the acquisition of 
        property, capabilities, and services by the Coast Guard by 
        establishing policies, procedures, and practices that ensure 
        that the Coast Guard receives a sufficient number of 
        competitive proposals from responsible sources to fulfill the 
        Government's requirements, including performance and delivery 
        schedules, at the lowest cost or best value considering the 
        nature of the property or service procured;
            ``(3) making acquisition decisions in concurrence with the 
        technical authority, or technical authorities, as appropriate, 
        of the Coast Guard, as designated by the Commandant, consistent 
        with all other applicable laws and decisions establishing 
        procedures within the Coast Guard;
            ``(4) ensuring the use of detailed performance 
        specifications in instances in which performance based 
        contracting is used;
            ``(5) managing the direction of acquisition policy for the 
        Coast Guard, including implementation of the unique acquisition 
        policies, regulations, and standards of the Coast Guard;
            ``(6) developing and maintaining an acquisition career 
        management program in the Coast Guard to ensure that there is 
        an adequate acquisition workforce;
            ``(7) assessing the requirements established for Coast 
        Guard personnel regarding knowledge and skill in acquisition 
        resources and management and the adequacy of such requirements 
        for facilitating the achievement of the performance goals 
        established for acquisition management;
            ``(8) developing strategies and specific plans for hiring, 
        training, and professional development; and
            ``(9) reporting to the Commandant, through the chain of 
        command, on the progress made in improving acquisition 
        management capability.''.
    (b) Clerical Amendment.--The table of contents for chapter 3 of 
title 14, United States Code, is amended by adding at the end the 
following:

``55. Chief Acquisition Officer.''.
    (c) Selection Deadline.--As soon as practicable after the date of 
enactment of this Act, but no later than October 1, 2011, the 
Commandant of the Coast Guard shall select a Chief Acquisition Officer 
under section 55 of title 14, United States Code.

SEC. 502. ACQUISITIONS.

    (a) In General.--Part I of title 14, United States Code, is amended 
by inserting after chapter 13 the following:

                       ``CHAPTER 15. ACQUISITIONS

                   ``Subchapter 1--General Provisions

``Sec.
``561. Acquisition directorate
``562. Senior acquisition leadership team
``563. Improvements in Coast Guard acquisition management
``564. Recognition of Coast Guard personnel for excellence in 
                            acquisition
``565. Prohibition on use of lead systems integrators
``566. Required contract terms
``567. Department of Defense consultation
``568. Undefinitized contractual actions
      ``Subchapter 2--Improved Acquisition Process and Procedures

``Sec.
``571. Identification of major system acquisitions
``572. Acquisition
``573. Preliminary development and demonstration
``574. Acquisition, production, deployment, and support
``575. Acquisition program baseline breach
                      ``Subchapter 3--Definitions

``Sec.
``581. Definitions

                   ``Subchapter 1--General Provisions

``561. Acquisition directorate
    ``(a) Establishment.--The Commandant of the Coast Guard shall 
establish an acquisition directorate to provide guidance and oversight 
for the implementation and management of all Coast Guard acquisition 
processes, programs, and projects.
    ``(b) Mission.--The mission of the acquisition directorate is--
            ``(1) to acquire and deliver assets and systems that 
        increase operational readiness, enhance mission performance, 
        and create a safe working environment; and
            ``(2) to assist in the development of a workforce that is 
        trained and qualified to further the Coast Guard's missions and 
        deliver the best value products and services to the Nation.
``562. Senior acquisition leadership team
    ``(a) Establishment.--The Commandant shall establish a senior 
acquisition leadership team within the Coast Guard comprised of--
            ``(1) the Vice Commandant;
            ``(2) the Deputy and Assistant Commandants;
            ``(3) appropriate senior staff members of each Coast Guard 
        directorate;
            ``(4) appropriate senior staff members for each assigned 
        field activity or command; and
            ``(5) any other Coast Guard officer or employee designated 
        by the Commandant.
    ``(b) Function.--The senior acquisition leadership team shall--
            ``(1) meet at the call of the Commandant at such places and 
        such times as the Commandant may require;
            ``(2) provide advice and information on operational and 
        performance requirements of the Coast Guard;
            ``(3) identify gaps and vulnerabilities in the operational 
        readiness of the Coast Guard;
            ``(4) make recommendations to the Commandant and the Chief 
        Acquisition Officer to remedy the identified gaps and 
        vulnerabilities in the operational readiness of the Coast 
        Guard; and
            ``(5) contribute to the development of a professional, 
        experienced acquisition workforce by providing acquisition-
        experience tours of duty and educational development for 
        officers and employees of the Coast Guard.
``563. Improvements in Coast Guard acquisition management
    ``(a) Project and Program Managers.--
            ``(1) Project or program manager defined.--In this section, 
        the term `project or program manager' means an individual 
        designated--
                    ``(A) to develop, produce, and deploy a new asset 
                to meet identified operational requirements; and
                    ``(B) to manage cost, schedule, and performance of 
                the acquisition or project or program.
            ``(2) Level 1 projects.-- An individual may not be assigned 
        as the project or program manager for a Level 1 acquisition 
        unless the individual holds a Level III acquisition 
        certification as a program manager.
            ``(3) Level 2 projects.--An individual may not be assigned 
        as the project or program manager for a Level 2 acquisition 
        unless the individual holds a Level II acquisition 
        certification as a program manager.
    ``(b) Guidance on Tenure and Accountability of Program and Project 
Managers.--Not later than one year after the date of enactment of the 
Coast Guard Authorization Act for Fiscal years 2010 and 2011, the 
Commandant shall issue guidance to address the qualifications, 
resources, responsibilities, tenure, and accountability of program and 
project managers for the management of acquisition programs and 
projects. The guidance shall address, at a minimum--
            ``(1) the qualifications required for project or program 
        managers, including the number of years of acquisition 
        experience and the professional training levels to be required 
        of those appointed to project or program management positions; 
        and
            ``(2) authorities available to project or program managers, 
        including, to the extent appropriate, the authority to object 
        to the addition of new program requirements that would be 
        inconsistent with the parameters established for an acquisition 
        program.
    ``(c) Acquisition Workforce.--
            ``(1) In general.--The Commandant shall designate a 
        sufficient number of positions to be in the Coast Guard's 
        acquisition workforce to perform acquisition-related functions 
        at Coast Guard headquarters and field activities.
            ``(2) Required positions.--The Commandant shall ensure that 
        members of the acquisition workforce have expertise, education, 
        and training in at least 1 of the following acquisition career 
        fields:
                    ``(A) Acquisition logistics.
                    ``(B) Auditing.
                    ``(C) Business, cost estimating, and financial 
                management.
                    ``(D) Contracting.
                    ``(E) Facilities engineering.
                    ``(F) Industrial or contract property management.
                    ``(G) Information technology.
                    ``(H) Manufacturing, production, and quality 
                assurance.
                    ``(I) Program management.
                    ``(J) Purchasing.
                    ``(K) Science and technology.
                    ``(L) Systems planning, research, development, and 
                engineering.
                    ``(M) Test and evaluation.
            ``(3) Acquisition workforce expedited hiring authority.--
                    ``(A) In general.--For purposes of sections 3304, 
                5333, and 5753 of title 5, the Commandant may--
                            ``(i) designate any category of acquisition 
                        positions within the Coast Guard as shortage 
                        category positions; and
                            ``(ii) use the authorities in such sections 
                        to recruit and appoint highly qualified person 
                        directly to positions so designated.
                    ``(B) Limitation.--The Commandant may not appoint a 
                person to a position of employment under this paragraph 
                after September 30, 2012.
    ``(d) Management Information System.--
            ``(1) In general.--The Commandant shall establish a 
        management information system capability to improve acquisition 
        workforce management and reporting.
            ``(2) Information maintained.--Information maintained with 
        such capability shall include the following standardized 
        information on individuals assigned to positions in the 
        workforce:
                    ``(A) Qualifications, assignment history, and 
                tenure of those individuals assigned to positions in 
                the acquisition workforce or holding acquisition-
                related certifications.
                    ``(B) Promotion rates for officers and members of 
                the Coast Guard in the acquisition workforce.
    ``(e) Career Paths.--To establish acquisition management as a core 
competency of the Coast Guard, the Commandant shall--
            ``(1) ensure that career paths for officers, members, and 
        employees of the Coast Guard who wish to pursue careers in 
        acquisition are identified in terms of the education, training, 
        experience, and assignments necessary for career progression of 
        those officers, members, and employees to the most senior 
        positions in the acquisition workforce; and
            ``(2) publish information on such career paths.
``564. Recognition of Coast Guard personnel for excellence in 
              acquisition
    ``(a) In General.--Not later than 180 days after the date of 
enactment of the Coast Guard Authorization Act for Fiscal Years 2010 
and 2011, the Commandant shall commence implementation of a program to 
recognize excellent performance by individuals and teams comprised of 
officers, members, and employees of the Coast Guard that contributed to 
the long-term success of a Coast Guard acquisition project or program.
    ``(b) Elements.--The program shall include--
            ``(1) specific award categories, criteria, and eligibility 
        and manners of recognition;
            ``(2) procedures for the nomination by personnel of the 
        Coast Guard of individuals and teams comprised of officers, 
        members, and employees of the Coast Guard for recognition under 
        the program; and
            ``(3) procedures for the evaluation of nominations for 
        recognition under the program by one or more panels of 
        individuals from the Government, academia, and the private 
        sector who have such expertise and are appointed in such manner 
        as the Commandant shall establish for the purposes of this 
        program.
    ``(c) Award of Cash Bonuses.--As part of the program required by 
subsection (a), the Commandant, subject to the availability of 
appropriations, may award to any civilian employee recognized pursuant 
to the program a cash bonus to the extent that the performance of such 
individual so recognized warrants the award of such bonus.
``565. Prohibition on use of lead systems integrators
    ``(a) In General.--
            ``(1) Use of lead systems integrator.--Except as provided 
        in subsection (b), the Commandant may not use a private sector 
        entity as a lead systems integrator for an acquisition contract 
        awarded or delivery order or task order issued after the date 
        of enactment of the Coast Guard Authorization Act for Fiscal 
        Years 2010 and 2011.
            ``(2) Full and open competition.--The Commandant and any 
        lead systems integrator engaged by the Coast Guard, pursuant to 
        the exceptions described in subsection (b), shall use full and 
        open competition for any acquisition contract awarded after the 
        date of enactment of that Act, unless otherwise excepted in 
        accordance with the Competition in Contracting Act of 1984 (41 
        U.S.C. 251 note), the amendments made by that Act, and the 
        Federal Acquisition Regulations.
            ``(3) No effect on small business act.--Nothing in this 
        subsection shall be construed to supersede or otherwise affect 
        the authorities provided by and under the Small Business Act 
        (15 U.S.C. 631 et seq.).
    ``(b) Exceptions.--
            ``(1) National distress and response system modernization 
        program; national security cutters 2 and 3.--Notwithstanding 
        subsection (a), the Commandant may use a private sector entity 
        as a lead systems integrator for the Coast Guard to complete 
        the National Distress and Response System Modernization 
        Program, the C4ISR projects directly related to the Integrated 
        Deepwater Program, and National Security Cutters 2 and 3 if the 
        Secretary of Homeland Security certifies that--
                    ``(A) the acquisition is in accordance with the 
                Competition in Contracting Act of 1984 (41 U.S.C. 251 
                note), the amendments made by that Act, and the Federal 
                Acquisition Regulations; and
                    ``(B) the acquisition and the use of a private 
                sector entity as a lead systems integrator for the 
                acquisition is in the best interest of the Federal 
                Government.
            ``(2) Termination date for exceptions.--Except for the 
        modification of delivery or task orders pursuant to Parts 4 and 
        42 of the Federal Acquisition Regulations, the Commandant may 
        not use a private sector entity as a lead systems integrator 
        after the earlier of--
                    ``(A) September 30, 2012; or
                    ``(B) the date on which the Commandant certifies in 
                writing to the appropriate congressional committees 
                that the Coast Guard has available and can retain 
                sufficient contracting personnel and expertise within 
                the Coast Guard, through an arrangement with other 
                Federal agencies, or through contracts or other 
                arrangements with private sector entities, to perform 
                the functions and responsibilities of the lead system 
                integrator in an efficient and cost-effective manner.
``566. Required contract terms
    ``(a) In General.--The Commandant shall ensure that a contract 
awarded or a delivery order or task order issued for an acquisition of 
a capability or an asset with an expected service life of 10 years and 
with a total acquisition cost that is equal to or exceeds $10,000,000 
awarded or issued by the Coast Guard after the date of enactment of the 
Coast Guard Authorization Act for Fiscal Years 2010 and 2011--
            ``(1) provides that all certifications for an end-state 
        capability or asset under such contract, delivery order, or 
        task order, respectively, will be conducted by the Commandant 
        or an independent third party, and that self-certification by a 
        contractor or subcontractor is not allowed;
            ``(2) requires that the Commandant shall maintain the 
        authority to establish, approve, and maintain technical 
        requirements;
            ``(3) requires that any measurement of contractor and 
        subcontractor performance be based on the status of all work 
        performed, including the extent to which the work performed met 
        all performance, cost, and schedule requirements;
            ``(4) specifies that, for the acquisition or upgrade of 
        air, surface, or shore capabilities and assets for which 
        compliance with TEMPEST certification is a requirement, the 
        standard for determining such compliance will be the air, 
        surface, or shore standard then used by the Department of the 
        Navy for that type of capability or asset; and
            ``(5) for any contract awarded to acquire an Offshore 
        Patrol Cutter, includes provisions specifying the service life, 
        fatigue life, and days underway in general Atlantic and North 
        Pacific Sea conditions, maximum range, and maximum speed the 
        cutter will be built to achieve.
    ``(b) Prohibited Contract Provisions.--The Commandant shall ensure 
that any contract awarded or delivery order or task order issued by the 
Coast Guard after the date of enactment of the Coast Guard 
Authorization Act for Fiscal Years 2010 and 2011 does not include any 
provision allowing for equitable adjustment that is not consistent with 
the Federal Acquisition Regulations.
    ``(c) Integrated Product Teams.--Integrated product teams, and all 
teams that oversee integrated product teams, shall be chaired by 
officers, members, or employees of the Coast Guard.
    ``(d) Deepwater Technical Authorities.--The Commandant shall 
maintain or designate the technical authorities to establish, approve, 
and maintain technical requirements. Any such designation shall be made 
in writing and may not be delegated to the authority of the Chief 
Acquisition Officer established by section 55 of this title.
``567. Department of Defense consultation
    ``(a) In General.--The Commandant shall make arrangements as 
appropriate with the Secretary of Defense for support in contracting 
and management of Coast Guard acquisition programs. The Commandant 
shall also seek opportunities to make use of Department of Defense 
contracts, and contracts of other appropriate agencies, to obtain the 
best possible price for assets acquired for the Coast Guard.
    ``(b) Inter-service Technical Assistance.--The Commandant shall 
seek to enter into a memorandum of understanding or a memorandum of 
agreement with the Secretary of the Navy to obtain the assistance of 
the Office of the Assistant Secretary of the Navy for Research, 
Development, and Acquisition, including the Navy Systems Command, with 
the oversight of Coast Guard major acquisition programs. The memorandum 
of understanding or memorandum of agreement shall, at a minimum, 
provide for--
            ``(1) the exchange of technical assistance and support that 
        the Assistant Commandants for Acquisition, Human Resources, 
        Engineering, and Information technology may identify;
            ``(2) the use, as appropriate, of Navy technical expertise; 
        and
            ``(3) the exchange of personnel between the Coast Guard and 
        the Office of the Assistant Secretary of the Navy for Research, 
        Development, and Acquisition, including Naval Systems Commands, 
        to facilitate the development of organic capabilities in the 
        Coast Guard.
    ``(c) Technical Requirement Approval Procedures.--The Chief 
Acquisition Officer shall adopt, to the extent practicable, procedures 
modeled after those used by the Navy Senior Acquisition Official to 
approve all technical requirements.
``568. Undefinitized contractual actions
    ``(a) In General.--The Coast Guard may not enter into an 
undefinitized contractual action unless such action is directly 
approved by the Head of Contracting Activity of the Coast Guard.
    ``(b) Requests for Undefinitized Contractual Actions.--Any request 
to the Head of Contracting Activity for approval of an undefinitized 
contractual action shall include a description of the anticipated 
effect on requirements of the Coast Guard if a delay is incurred for 
the purposes of determining contractual terms, specifications, and 
price before performance is begun under the contractual action.
    ``(c) Requirements for Undefinitized Contractual Actions.--
            ``(1) Deadline for agreement on terms, specifications, and 
        price.--A contracting officer of the Coast Guard may not enter 
        into an undefinitized contractual action unless the contractual 
        action provides for agreement upon contractual terms, 
        specification, and price by the earlier of--
                    ``(A) the end of the 180-day period beginning on 
                the date on which the contractor submits a qualifying 
                proposal to definitize the contractual terms, 
                specifications, and price; or
                    ``(B) the date on which the amount of funds 
                obligated under the contractual action is equal to more 
                than 50 percent of the negotiated overall ceiling price 
                for the contractual action.
            ``(2) Limitation on obligations.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the contracting officer for an 
                undefinitized contractual action may not obligate under 
                such contractual action an amount that exceeds 50 
                percent of the negotiated overall ceiling price until 
                the contractual terms, specifications, and price are 
                definitized for such contractual action.
                    ``(B) Exception.--Notwithstanding subparagraph (A), 
                if a contractor submits a qualifying proposal to 
                definitize an undefinitized contractual action before 
                an amount that exceeds 50 percent of the negotiated 
                overall ceiling price is obligated on such action, the 
                contracting officer for such action may not obligate 
                with respect to such contractual action an amount that 
                exceeds 75 percent of the negotiated overall ceiling 
                price until the contractual terms, specifications, and 
                price are definitized for such contractual action.
            ``(3) Waiver.--The Commandant may waive the application of 
        this subsection with respect to a contract if the Commandant 
        determines that the waiver is necessary to support--
                    ``(A) a contingency operation (as that term is 
                defined in section 101(a)(13) of title 10);
                    ``(B) operations to prevent or respond to a 
                transportation security incident (as defined in section 
                70101(6) of title 46);
                    ``(C) an operation in response to an emergency that 
                poses an unacceptable threat to human health or safety 
                or to the marine environment; or
                    ``(D) an operation in response to a natural 
                disaster or major disaster or emergency designated by 
                the President under the Robert T. Stafford Disaster 
                Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
                seq.).
            ``(4) Limitation on application.--This subsection does not 
        apply to an undefinitized contractual action for the purchase 
        of initial spares.
    ``(d) Inclusion of Nonurgent Requirements.--Requirements for spare 
parts and support equipment that are not needed on an urgent basis may 
not be included in an undefinitized contractual action by the Coast 
Guard for spare parts and support equipment that are needed on an 
urgent basis unless the Commandant approves such inclusion as being--
            ``(1) good business practice; and
            ``(2) in the best interests of the United States.
    ``(e) Modification of Scope.--The scope of an undefinitized 
contractual action under which performance has begun may not be 
modified unless the Commandant approves such modification as being--
            ``(1) good business practice; and
            ``(2) in the best interests of the United States.
    ``(f) Allowable Profit.--The Commandant shall ensure that the 
profit allowed on an undefinitized contractual action for which the 
final price is negotiated after a substantial portion of the 
performance required is completed reflects--
            ``(1) the possible reduced cost risk of the contractor with 
        respect to costs incurred during performance of the contract 
        before the final price is negotiated; and
            ``(2) the reduced cost risk of the contractor with respect 
        to costs incurred during performance of the remaining portion 
        of the contract.
    ``(g) Definitions.--In this section:
            ``(1) Undefinitized contractual action.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `undefinitized contractual 
                action' means a new procurement action entered into by 
                the Coast Guard for which the contractual terms, 
                specifications, or price are not agreed upon before 
                performance is begun under the action.
                    ``(B) Exclusion.--The term `undefinitized 
                contractual action' does not include contractual 
                actions with respect to--
                            ``(i) foreign military sales;
                            ``(ii) purchases in an amount not in excess 
                        of the amount of the simplified acquisition 
                        threshold; or
                            ``(iii) special access programs.
            ``(2) Qualifying proposal.--The term `qualifying proposal' 
        means a proposal that contains sufficient information to enable 
        complete and meaningful audits of the information contained in 
        the proposal as determined by the contracting officer.

      ``Subchapter 2--Improved Acquisition Process and Procedures

``571. Identification of major system acquisitions
    ``(a) In General.--
            ``(1) Support mechanisms.--The Commandant shall develop and 
        implement mechanisms to support the establishment of mature and 
        stable operational requirements for acquisitions under this 
        subchapter.
            ``(2) Mission analysis; affordability assessment.--The 
        Commandant may not initiate a Level 1 or Level 2 acquisition 
        project or program until the Commandant--
                    ``(A) completes a mission analysis that--
                            ``(i) identifies any gaps in capability; 
                        and
                            ``(ii) develops a clear mission need; and
                    ``(B) prepares a preliminary affordability 
                assessment for the project or program.
    ``(b) Elements.--
            ``(1) Requirements.--The mechanisms required by subsection 
        (a) shall ensure the implementation of a formal process for the 
        development of a mission-needs statement, concept-of-operations 
        document, capability development plan, and resource proposal 
        for the initial project or program funding, and shall ensure 
        the project or program is included in the Coast Guard Capital 
        Investment Plan.
            ``(2) Assessment of trade-offs.--In conducting an 
        affordability assessment under subsection (a)(2)(B), the 
        Commandant shall develop and implement mechanisms to ensure 
        that trade-offs among cost, schedule, and performance are 
        considered in the establishment of preliminary operational 
        requirements for development and production of new assets and 
        capabilities for Level 1 and Level 2 acquisitions projects and 
        programs.
    ``(c) Human Resource Capital Planning.--The Commandant shall 
develop staffing predictions, define human capital performance 
initiatives, and identify preliminary training needs for any such 
project or program.
    ``(d) DHS Acquisition Approval.--A Level 1 or Level 2 acquisition 
project or program may not be implemented unless it is approved by the 
Department of Homeland Security Acquisition Review Board or the Joint 
Review Board.
``572. Acquisition
    ``(a) In General.--The Commandant may not establish a Level 1 or 
Level 2 acquisition project or program approved under section 571(d) 
until the Commandant--
            ``(1) clearly defines the operational requirements for the 
        project or program;
            ``(2) establishes the feasibility of alternatives;
            ``(3) develops an acquisition project or program baseline;
            ``(4) produces a life-cycle cost estimate; and
            ``(5) assesses the relative merits of alternatives to 
        determine a preferred solution in accordance with the 
        requirements of this section.
    ``(b) Analysis of Alternatives.--
            ``(1) In general.--The Commandant shall conduct an analysis 
        of alternatives for the asset or capability to be acquired in 
        an analyze and select phase of the acquisition process.
            ``(2) Requirements.--The analysis of alternatives shall be 
        conducted by a federally funded research and development 
        center, a qualified entity of the Department of Defense, or a 
        similar independent third party entity that has appropriate 
        acquisition expertise and has no substantial financial interest 
        in any part of the acquisition project or program that is the 
        subject of the analysis. At a minimum, the analysis of 
        alternatives shall include--
                    ``(A) an assessment of the technical maturity, and 
                technical and other risks;
                    ``(B) an examination of capability, 
                interoperability, and other disadvantages;
                    ``(C) an evaluation of whether different 
                combinations or quantities of specific assets or 
                capabilities could meet the Coast Guard's overall 
                performance needs;
                    ``(D) a discussion of key assumptions and 
                variables, and sensitivity to change in such 
                assumptions and variables;
                    ``(E) when an alternative is an existing asset or 
                prototype, an evaluation of relevant safety and 
                performance records and costs;
                    ``(F) a calculation of life-cycle costs including--
                            ``(i) an examination of likely research and 
                        development costs and the levels of uncertainty 
                        associated with such estimated costs;
                            ``(ii) an examination of likely production 
                        and deployment costs and levels of uncertainty 
                        associated with such estimated costs;
                            ``(iii) an examination of likely operating 
                        and support costs and the levels of uncertainty 
                        associated with such estimated costs;
                            ``(iv) if they are likely to be 
                        significant, an examination of likely disposal 
                        costs and the levels of uncertainty associated 
                        with such estimated costs; and
                            ``(v) such additional measures as the 
                        Commandant or the Secretary of Homeland 
                        Security determines to be necessary for 
                        appropriate evaluation of the asset; and
                    ``(G) the business case for each viable 
                alternative.
    ``(c) Test and Evaluation Master Plan.--
            ``(1) In general.--For any Level 1 or Level 2 acquisition 
        project or program the Chief Acquisition Officer shall approve 
        a test and evaluation master plan specific to the acquisition 
        project or program for the capability, asset, or subsystems of 
        the capability or asset and intended to minimize technical, 
        cost, and schedule risk as early as practicable in the 
        development of the project or program.
            ``(2) Test and evaluation strategy.--The master plan 
        shall--
                    ``(A) set forth an integrated test and evaluation 
                strategy that will verify that capability-level or 
                asset-level and subsystem-level design and development, 
                including performance and supportability, have been 
                sufficiently proven before the capability, asset, or 
                subsystem of the capability or asset is approved for 
                production; and
                    ``(B) require that adequate developmental tests and 
                evaluations and operational tests and evaluations 
                established under subparagraph (A) are performed to 
                inform production decisions.
            ``(3) Other components of the master plan.--At a minimum, 
        the master plan shall identify--
                    ``(A) the key performance parameters to be resolved 
                through the integrated test and evaluation strategy;
                    ``(B) critical operational issues to be assessed in 
                addition to the key performance parameters;
                    ``(C) specific development test and evaluation 
                phases and the scope of each phase;
                    ``(D) modeling and simulation activities to be 
                performed, if any, and the scope of such activities;
                    ``(E) early operational assessments to be 
                performed, if any, and the scope of such assessments;
                    ``(F) operational test and evaluation phases;
                    ``(G) an estimate of the resources, including 
                funds, that will be required for all test, evaluation, 
                assessment, modeling, and simulation activities; and
                    ``(H) the Government entity or independent entity 
                that will perform the test, evaluation, assessment, 
                modeling, and simulation activities.
            ``(4) Update.--The Chief Acquisition Officer shall approve 
        an updated master plan whenever there is a revision to project 
        or program test and evaluation strategy, scope, or phasing.
            ``(5) Limitation.--The Coast Guard may not--
                    ``(A) proceed beyond that phase of the acquisition 
                process that entails approving the supporting 
                acquisition of a capability or asset before the master 
                plan is approved by the Chief Acquisition Officer; or
                    ``(B) award any production contract for a 
                capability, asset, or subsystem for which a master plan 
                is required under this subsection before the master 
                plan is approved by the Chief Acquisition Officer.
    ``(d) Life-cycle cost estimates.--
            ``(1) In general.--The Commandant shall implement 
        mechanisms to ensure the development and regular updating of 
        life-cycle cost estimates for each Level 1 or Level 2 
        acquisition to ensure that these estimates are considered in 
        decisions to develop or produce new or enhanced capabilities 
        and assets.
            ``(2) Types of estimates.--In addition to life-cycle cost 
        estimates that may be developed by acquisition program offices, 
        the Commandant shall require that an independent life-cycle 
        cost estimate be developed for each Level 1 or Level 2 
        acquisition project or program.
            ``(3) Required updates.--For each Level 1 or Level 2 
        acquisition project or program the Commandant shall require 
        that life-cycle cost estimates shall be updated before each 
        milestone decision is concluded and the project or program 
        enters a new acquisition phase.
    ``(e) DHS Acquisition Approval.--A project or program may not enter 
the obtain phase under section 573 unless the Department of Homeland 
Security Acquisition Review Board or the Joint Review Board (or other 
entity to which such responsibility is delegated by the Secretary of 
Homeland Security) has approved the analysis of alternatives for the 
project. The Joint Review Board may also approve the low rates initial 
production quantity for the project or program if such an initial 
production quantity is planned by the acquisition project or program 
and deemed appropriate by the Joint Review Board.
``573. Preliminary development and demonstration
    ``(a) In General.--The Commandant shall ensure that developmental 
test and evaluation, operational test and evaluation, life cycle cost 
estimates, and the development and demonstration requirements are met 
to confirm that the projects or programs meet the requirements 
described in the mission-needs statement and the operational-
requirements document and the following development and demonstration 
objectives:
            ``(1) To demonstrate that the most promising design, 
        manufacturing, and production solution is based upon a stable, 
        producible, and cost-effective product design.
            ``(2) To ensure that the product capabilities meet contract 
        specifications, acceptable operational performance 
        requirements, and system security requirements.
            ``(3) To ensure that the product design is mature enough to 
        commit to full production and deployment.
    ``(b) Tests and Evaluations.--
            ``(1) In general.--The Commandant shall ensure that the 
        Coast Guard conducts developmental tests and evaluations and 
        operational tests and evaluations of a capability or asset and 
        the subsystems of the capability or asset for which a master 
        plan has been prepared under section 572(c)(1).
            ``(2) Use of third parties.--The Commandant shall ensure 
        that the Coast Guard uses independent third parties with 
        expertise in testing and evaluating the capabilities or assets 
        and the subsystems of the capabilities or assets being acquired 
        to conduct developmental tests and evaluations and operational 
        tests and evaluations whenever the Coast Guard lacks the 
        capability to conduct the tests and evaluations required by a 
        master plan.
            ``(3) Communication of safety concerns.--The Commandant 
        shall require that safety concerns identified during 
        developmental or operational tests and evaluations or through 
        independent or Government-conducted design assessments of 
        capabilities or assets and subsystems of capabilities or assets 
        to be acquired by the Coast Guard shall be communicated as soon 
        as practicable, but not later than 30 days after the completion 
        of the test or assessment event or activity that identified the 
        safety concern, to the program manager for the capability or 
        asset and the subsystems concerned and to the Chief Acquisition 
        Officer.
            ``(4) Asset already in low, initial, or full-rate 
        production.--If operational test and evaluation on a capability 
        or asset already in low, initial, or full-rate production 
        identifies a safety concern with the capability or asset or any 
        subsystems of the capability or asset not previously identified 
        during developmental or operational test and evaluation, the 
        Commandant shall--
                    ``(A) notify the program manager and the Chief 
                Acquisition Officer of the safety concern as soon as 
                practicable, but not later than 30 days after the 
                completion of the test and evaluation event or activity 
                that identified the safety concern; and
                    ``(B) notify the Chief Acquisition Officer and 
                include in such notification--
                            ``(i) an explanation of the actions that 
                        will be taken to correct or mitigate the safety 
                        concern in all capabilities or assets and 
                        subsystems of the capabilities or assets yet to 
                        be produced, and the date by which those 
                        actions will be taken;
                            ``(ii) an explanation of the actions that 
                        will be taken to correct or mitigate the safety 
                        concern in previously produced capabilities or 
                        assets and subsystems of the capabilities or 
                        assets, and the date by which those actions 
                        will be taken; and
                            ``(iii) an assessment of the adequacy of 
                        current funding to correct or mitigate the 
                        safety concern in capabilities or assets and 
                        subsystems of the capabilities or assets and in 
                        previously produced capabilities or assets and 
                        subsystems.
    ``(c) Technical Certification.--
            ``(1) In general.--The Commandant shall--ensure that any 
        Level 1 or Level 2 acquisition project or program is certified 
        by the technical authority of the Coast Guard after review by 
        an independent third party with capabilities in the mission 
        area, asset, or particular asset component.
            ``(2) TEMPEST testing.--The Commandant shall--
                    ``(A) cause all electronics on all aircraft, 
                surface, and shore assets that require TEMPEST 
                certification and that are delivered after the date of 
                enactment of the Coast Guard Authorization Act for 
                Fiscal Years 2010 and 2011 to be tested in accordance 
                with master plan standards and communications security 
                standards by an independent third party that is 
                authorized by the Federal Government to perform such 
                testing; and
                    ``(B) certify that the assets meet all applicable 
                TEMPEST requirements.
            ``(3) Vessel classification.--The Commandant shall cause 
        each cutter, other than the National Security Cutter, acquired 
        by the Coast Guard and delivered after the date of enactment of 
        the Coast Guard Authorization Act for Fiscal Years 2010 and 
        2011 is to be classed by the American Bureau of Shipping before 
        final acceptance.
    ``(d) Acquisition Decision.--The Commandant may not proceed to full 
scale production, deployment, and support of a Level 1 or Level 2 
acquisition project or program unless the Department of Homeland 
Security Acquisition Review Board has verified that the delivered asset 
or system meets the project or program performance and cost goals.
``574. Acquisition, production, deployment, and support
    ``(a) In General.--The Commandant shall--
            ``(1) ensure there is a stable and efficient production and 
        support capability to develop an asset or system;
            ``(2) conduct follow on testing to confirm and monitor 
        performance and correct deficiencies; and
            ``(3) conduct acceptance tests and trails upon the delivery 
        of each asset or system to ensure the delivered asset or system 
        achieves full operational capability.
    ``(b) Elements.--The Commandant shall--
            ``(1) execute the productions contracts;
            ``(2) ensure the delivered products meet operational cost 
        and schedules requirements established in the acquisition 
        program baseline;
            ``(3) validate manpower and training requirements to meet 
        system needs to operate, maintain, support, and instruct the 
        system; and
            ``(4) prepare a project or program transition plan to enter 
        into programmatic sustainment, operations, and support.
``575. Acquisition program baseline breach
    ``(a) In General.--The Commandant shall submit a report to the 
appropriate congressional committees as soon as possible, but not later 
than 30 days, after the Chief Acquisition Officer of the Coast Guard 
becomes aware of the breach of an acquisition program baseline for any 
Level 1 or Level 2 acquisition program, by--
            ``(1) a likely cost overrun greater than 15 percent of the 
        acquisition program baseline for that individual capability or 
        asset or a class of capabilities or assets;
            ``(2) a likely delay of more than 180 days in the delivery 
        schedule for any individual capability or asset or class of 
        capabilities or assets; or
            ``(3) an anticipated failure for any individual capability 
        or asset or class of capabilities or assets to satisfy any key 
        performance threshold or parameter under the acquisition 
        program baseline.
    ``(b) Content.--The report submitted under subsection (a) shall 
include--
            ``(1) a detailed description of the breach and an 
        explanation of its cause;
            ``(2) the projected impact to performance, cost, and 
        schedule;
            ``(3) an updated acquisition program baseline and the 
        complete history of changes to the original acquisition program 
        baseline;
            ``(4) the updated acquisition schedule and the complete 
        history of changes to the original schedule;
            ``(5) a full life-cycle cost analysis for the capability or 
        asset or class of capabilities or assets;
            ``(6) a remediation plan identifying corrective actions and 
        any resulting issues or risks; and
            ``(7) a description of how progress in the remediation plan 
        will be measured and monitored.
    ``(c) Substantial Variances in Costs or Schedule.--If a likely cost 
overrun is greater than 25 percent or a likely delay is greater than 12 
months from the costs and schedule described in the acquisition program 
baseline for any Level 1 or Level 2 acquisition project or program of 
the Coast Guard, the Commandant shall include in the report a written 
certification, with a supporting explanation, that--
            ``(1) the capability or asset or capability or asset class 
        to be acquired under the project or program is essential to the 
        accomplishment of Coast Guard missions;
            ``(2) there are no alternatives to such capability or asset 
        or capability or asset class which will provide equal or 
        greater capability in both a more cost-effective and timely 
        manner;
            ``(3) the new acquisition schedule and estimates for total 
        acquisition cost are reasonable; and
            ``(4) the management structure for the acquisition program 
        is adequate to manage and control performance, cost, and 
        schedule.

                      ``Subchapter 3--Definitions

``581. Definitions
    ``In this chapter:
            ``(1) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means the House of 
        Representatives Committee on Transportation and Infrastructure 
        and the Senate Committee on Commerce, Science, and 
        Transportation.
            ``(2) Chief acquisition officer.--The term `Chief 
        Acquisition Officer' means the officer appointed under section 
        55 of this title.
            ``(3) Commandant.--The term `Commandant' means the 
        Commandant of the Coast Guard.
            ``(4) Joint review board.--The term `Joint Review Board' 
        means the Department of Homeland Security's Investment Review 
        Board, Joint Requirements Council, or other entity within the 
        Department designated by the Secretary as the Joint Review 
        Board for purposes of this chapter.
            ``(5) Level 1 acquisition.--The term `Level 1 acquisition' 
        means--
                    ``(A) an acquisition by the Coast Guard--
                            ``(i) the estimated life-cycle costs of 
                        which exceed $1,000,000,000; or
                            ``(ii) the estimated total acquisition 
                        costs of which exceed $300,000,000; or
                    ``(B) any acquisition that the Chief Acquisition 
                Officer of the Coast Guard determines to have a special 
                interest--
                            ``(i) due to--
                                    ``(I) the experimental or 
                                technically immature nature of the 
                                asset;
                                    ``(II) the technological complexity 
                                of the asset;
                                    ``(III) the commitment of 
                                resources; or
                                    ``(IV) the nature of the capability 
                                or set of capabilities to be achieved; 
                                or
                            ``(ii) because such acquisition is a joint 
                        acquisition.
            ``(6) Level 2 acquisition.--The term `Level 2 acquisition' 
        means an acquisition by the Coast Guard--
                    ``(A) the estimated life-cycle costs of which are 
                equal to or less than $1,000,000,000, but greater than 
                $300,000,000; or
                    ``(B) the estimated total acquisition costs of 
                which are equal to or less than $300,000,0000, but 
                greater than $100,000,000.
            ``(7) Life-cycle cost.--The term `life-cycle cost' means 
        all costs for development, procurement, construction, and 
        operations and support for a particular capability or asset, 
        without regard to funding source or management control.
            ``(8) Safety concern.--The term `safety concern' means any 
        hazard associated with a capability or asset or a subsystem of 
        a capability or asset that is likely to cause serious bodily 
        injury or death to a typical Coast Guard user in testing, 
        maintaining, repairing, or operating the capability, asset, or 
        subsystem or any hazard associated with the capability, asset, 
        or subsystem that is likely to cause major damage to the 
        capability, asset, or subsystem during the course of its normal 
        operation by a typical Coast Guard user.''.
    (b) Conforming Amendment.--The part analysis for part I of title 
14, United States Code, is amended by inserting after the item relating 
to chapter 13 the following:

      ``15. Acquisitions..........................................561''.

SEC. 503. REPORT AND GUIDANCE ON EXCESS PASS-THROUGH CHARGES.

    (a) Comptroller General Report.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Comptroller General shall issue a 
        report on pass-through charges on contracts, subcontracts, 
        delivery orders, and task orders that were executed by a lead 
        systems integrator under contract to the Coast Guard during the 
        3 full calendar years preceding the date of enactment of this 
        Act.
            (2) Matters covered.--The report under this subsection--
                    (A) shall assess the extent to which the Coast 
                Guard paid excessive pass-through charges to 
                contractors or subcontractors that provided little or 
                no value to the performance of a contract or the 
                production of a procured asset; and
                    (B) shall assess the extent to which the Coast 
                Guard has been particularly vulnerable to excessive 
                pass-through charges on any specific category of 
                contracts or by any specific category of contractors.
    (b) Guidance Required.--
             (1) In General.--Not later than 180 days after the date of 
        enactment of this Act, the Commandant shall prescribe guidance 
        to ensure that pass-through charges on contracts, subcontracts, 
        delivery orders, and task orders that are executed with a 
        private entity acting as a lead systems integrator by or on 
        behalf of the Coast Guard are not excessive in relation to the 
        cost of work performed by the relevant contractor or 
        subcontractor. The guidance shall, at a minimum--
                    (A) set forth clear standards for determining when 
                no, or negligible, value has been added to a contract 
                by a contractor or subcontractor;
                    (B) set forth procedures for preventing the payment 
                by the Government of excessive pass-through charges; 
                and
                    (C) identify any exceptions determined by the 
                Commandant to be in the best interest of the 
                Government.
            (2) Scope of guidance.--The guidance prescribed under this 
        subsection--
                    (A) shall not apply to any firm, fixed-price 
                contract or subcontract, delivery order, or task order 
                that is--
                            (i) awarded on the basis of adequate price 
                        competition, as determined by the Commandant; 
                        or
                            (ii) for the acquisition of a commercial 
                        item, as defined in section 4(12) of the Office 
                        of Federal Procurement Policy Act (41 U.S.C. 
                        403(12)); and
                    (B) may include such additional exceptions as the 
                Commandant determines to be necessary in the interest 
                of the United States.
    (c) Excessive Pass-Through Charge Defined.--In this section the 
term ``excessive pass-through charge'', with respect to a contractor or 
subcontractor that adds no, or negligible, value to a contract or 
subcontract, means a charge to the Government by the contractor or 
subcontractor that is for overhead or profit on work performed by a 
lower-tier contractor or subcontractor, other than reasonable charges 
for the direct costs of managing lower-tier contractors and 
subcontracts and overhead and profit based on such direct costs.
    (d) Application of Guidance.--The guidance prescribed under this 
section shall apply to contracts awarded to a private entity acting as 
a lead systems integrator by or on behalf of the Coast Guard on or 
after the date that is 360 days after the date of enactment of this 
Act.

                   TITLE VI--SHIPPING AND NAVIGATION

SEC. 601. TECHNICAL AMENDMENTS TO CHAPTER 313 OF TITLE 46, UNITED 
              STATES CODE.

    (a) In General.--Chapter 313 of title 46, United States Code, is 
amended--
            (1) by striking ``of Transportation'' in sections 31302, 
        31306, 31321, 31330, and 31343 each place it appears;
            (2) by striking ``and'' after the semicolon in section 
        31301(5)(F);
            (3) by striking ``office.'' in section 31301(6) and 
        inserting ``office; and''; and
            (4) by adding at the end of section 31301 the following:
            ``(7) `Secretary' means the Secretary of the Department of 
        Homeland Security, unless otherwise noted.''.
    (b) Secretary as Mortgagee.--Section 31308 of such title is amended 
by striking ``When the Secretary of Commerce or Transportation is a 
mortgagee under this chapter, the Secretary'' and inserting ``The 
Secretary of Commerce or Transportation, as a mortgagee under this 
chapter,''.
    (c) Secretary of Transportation.--Section 31329(d) of such title is 
amended by striking ``Secretary.'' and inserting ``Secretary of 
Transportation.''.
    (d) Mortgagee.--
            (1) Section 31330(a)(1) of such title, as amended by 
        subsection (a)(1) of this section, is amended--
                    (A) by inserting ``or'' after the semicolon in 
                subparagraph (B);
                    (B) by striking ``Secretary; or'' in subparagraph 
                (C) and inserting ``Secretary.''; and
                    (C) by striking subparagraph (D).
            (2) Section 31330(a)(2) is amended--
                    (A) by inserting ``or'' after the semicolon in 
                subparagraph (B);
                    (B) by striking ``faith; or'' in subparagraph (C) 
                and inserting ``faith.''; and
                    (C) by striking subparagraph (D).

SEC. 602. CLARIFICATION OF RULEMAKING AUTHORITY.

    (a) In General.--Chapter 701 of title 46, United States Code, is 
amended by adding at the end the following:
``Sec. 70122. Regulations
    ``Unless otherwise provided, the Secretary may issue regulations 
necessary to implement this chapter.''.
    (b) Clerical Amendment.--The table of contents for chapter 701 of 
such title is amended by adding at the end the following new item:

``70122. Regulations.''.

SEC. 603. COAST GUARD TO MAINTAIN LORAN-C NAVIGATION SYSTEM.

    (a) In General.--The Secretary of Transportation shall maintain the 
LORAN-C navigation system until such time as the Secretary is 
authorized by statute, explicitly referencing this section, to cease 
operating the system but expedite modernization projects necessary for 
transition to eLORAN technology.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation, in addition to funds 
authorized under section 101 of this Act for the Coast Guard for 
operation of the LORAN-C system and for the transition to eLORAN, for 
capital expenses related to the LORAN-C infrastructure and to modernize 
and upgrade the LORAN infrastructure to provide eLORAN services, 
$37,000,000 for each of fiscal years 2010 and 2011. The Secretary of 
Transportation may transfer from the Federal Aviation Administration 
and other agencies of the Department of Transportation such funds as 
may be necessary to reimburse the Coast Guard for related expenses.
    (c) Report on Transition to eLORAN Technology.--No later than 6 
months after the date of enactment of this Act, the Secretary of 
Transportation, in cooperation with the Secretary of the Department in 
which the Coast Guard is operating, shall provide a report to the 
Senate Committee on Commerce, Science, and Transportation and the House 
of Representatives Committee on Transportation and Infrastructure a 
detailed 5-year plan for transition to eLORAN technology that 
includes--
            (1) the timetable, milestones, projects, and future funding 
        required to complete the transition from LORAN-C to eLORAN 
        technology for provision of positioning, navigation, and timing 
        services; and
            (2) the benefits of eLORAN for national transportation 
        safety, security, and economic growth.

SEC. 604. ICEBREAKERS.

    (a) Analyses.--Not later than 90 days after the date of enactment 
of this Act or the date of completion of the ongoing High Latitude 
Study to assess polar ice-breaking mission requirements, which ever 
occurs later, the Commandant of the Coast Guard shall--
            (1) conduct a comparative cost-benefit analysis of--
                    (A) rebuilding, renovating, or improving the 
                existing fleet of polar icebreakers for operation by 
                the Coast Guard,
                    (B) constructing new polar icebreakers for 
                operation by the Coast Guard for operation by the Coast 
                Guard, and
                    (C) any combination of the activities described in 
                subparagraphs (A) and (B), to carry out the missions of 
                the Coast Guard; and
            (2) conduct an analysis of the impact on mission capacity 
        and the ability of the United States to maintain a presence in 
        the polar regions through the year 2020 if recapitalization of 
        the polar icebreaker fleet, either by constructing new polar 
        icebreakers or rebuilding, renovating, or improving the 
        existing fleet of polar icebreakers, is not fully funded.
    (b) Reports to Congress.--
            (1) Not later than 90 days after the date of enactment of 
        this Act or the date of completion of the ongoing High Latitude 
        Study to assess polar ice-breaking mission requirements, which 
        ever occurs later, the Commandant of the Coast Guard shall 
        submit a report containing the results of the study, together 
        with recommendations the Commandant deems appropriate under 
        section 93(a)(24) of title 14, United States Code, to the 
        Senate Committee on Commerce, Science, and Transportation and 
        the House of Representatives Committee on Transportation and 
        Infrastructure.
            (2) Not later than 1 year after the date of enactment of 
        this Act, the Commandant shall submit reports containing the 
        results of the analyses required under paragraphs (1) and (2) 
        of subsection (a), together with recommendations the Commandant 
        deems appropriate under section 93(a)(24) of title 14, United 
        States Code, to the Senate Committee on Commerce, Science, and 
        Transportation and the House of Representatives Committee on 
        Transportation and Infrastructure.

SEC. 605. VESSEL SIZE LIMITS.

    (a) Length, Tonnage, and Horsepower.--Section 12113(d)(2) of title 
46, United States Code, is amended--
            (1) by inserting ``and'' after the semicolon at the end of 
        subparagraph (A)(i);
            (2) by striking ``and'' at the end of subparagraph (A)(ii);
            (3) by striking subparagraph (A)(iii);
            (4) by striking the period at the end of subparagraph (B) 
        and inserting ``; or''; and
            (5) by inserting at the end the following:
                    ``(C) the vessel is either a rebuilt vessel or a 
                replacement vessel under section 208(g) of the American 
                Fisheries Act (title II of division C of Public Law 
                105-277; 112 Stat. 2681-627) and is eligible for a 
                fishery endorsement under this section.''.
    (b) Conforming Amendments.--
            (1) Vessel rebuilding and replacement.--Section 208(g) of 
        the American Fisheries Act (title II of division C of Public 
        Law 105-277; 112 Stat. 2681-627) is amended to read as follows:
    ``(g) Vessel Rebuilding and Replacement.--
            ``(1) In general.--
                    ``(A) Rebuild or replace.--Notwithstanding any 
                limitation to the contrary on replacing, rebuilding, or 
                lengthening vessels or transferring permits or licenses 
                to a replacement vessel contained in sections 679.2 and 
                679.4 of title 50, Code of Federal Regulations, as in 
                effect on the date of enactment of the Coast Guard 
                Authorization Act for Fiscal Years 2010 and 2011 and 
                except as provided in paragraph (4), the owner of a 
                vessel eligible under subsection (a), (b), (c), (d), or 
                (e) (other than paragraph (21)), in order to improve 
                vessel safety and operational efficiencies (including 
                fuel efficiency), may rebuild or replace that vessel 
                (including fuel efficiency) with a vessel documented 
                with a fishery endorsement under section 12113 of title 
                46, United States Code.
                    ``(B) Same requirements.--The rebuilt or 
                replacement vessel shall be eligible in the same manner 
                and subject to the same restrictions and limitations 
                under such subsection as the vessel being rebuilt or 
                replaced.
                    ``(C) Transfer of permits and licenses.--Each 
                fishing permit and license held by the owner of a 
                vessel or vessels to be rebuilt or replaced under 
                subparagraph (A) shall be transferred to the rebuilt or 
                replacement vessel.
            ``(2) Recommendations of north pacific council.--The North 
        Pacific Council may recommend for approval by the Secretary 
        such conservation and management measures, including size 
        limits and measures to control fishing capacity, in accordance 
        with the Magnuson-Stevens Act as it considers necessary to 
        ensure that this subsection does not diminish the effectiveness 
        of fishery management plans of the Bering Sea and Aleutian 
        Islands Management Area or the Gulf of Alaska.
            ``(3) Special rule for replacement of certain vessels.--
                    ``(A) In general.--Notwithstanding the requirements 
                of subsections (b)(2), (c)(1), and (c)(2) of section 
                12113 of title 46, United States Code, a vessel that is 
                eligible under subsection (a), (b), (c), (d), or (e) 
                (other than paragraph (21)) and that qualifies to be 
                documented with a fishery endorsement pursuant to 
                section 203(g) or 213(g) may be replaced with a 
                replacement vessel under paragraph (1) if the vessel 
                that is replaced is validly documented with a fishery 
                endorsement pursuant to section 203(g) or 213(g) before 
                the replacement vessel is documented with a fishery 
                endorsement under section 12113 of title 46, United 
                States Code.
                    ``(B) Applicability.--A replacement vessel under 
                subparagraph (A) and its owner and mortgagee are 
                subject to the same limitations under section 203(g) or 
                213(g) that are applicable to the vessel that has been 
                replaced and its owner and mortgagee.
            ``(4) Special rules for certain catcher vessels.--
                    ``(A) In general.--A replacement for a covered 
                vessel described in subparagraph (B) is prohibited from 
                harvesting fish in any fishery (except for the Pacific 
                whiting fishery) managed under the authority of any 
                regional fishery management council (other than the 
                North Pacific Council) established under section 302(a) 
                of the Magnuson-Stevens Act.
                    ``(B) Covered vessels.--A covered vessel referred 
                to in subparagraph (A) is--
                            ``(i) a vessel eligible under subsection 
                        (a), (b), or (c) that is replaced under 
                        paragraph (1); or
                            ``(ii) a vessel eligible under subsection 
                        (a), (b), or (c) that is rebuilt to increase 
                        its registered length, gross tonnage, or shaft 
                        horsepower.
            ``(5) Limitation on fishery endorsements.--Any vessel that 
        is replaced under this subsection shall thereafter not be 
        eligible for a fishery endorsement under section 12113 of title 
        46, United States Code, unless that vessel is also a 
        replacement vessel described in paragraph (1).
            ``(6) Gulf of alaska limitation.--Notwithstanding paragraph 
        (1), the Secretary shall prohibit from participation in the 
        groundfish fisheries of the Gulf of Alaska any vessel that is 
        rebuilt or replaced under this subsection and that exceeds the 
        maximum length overall specified on the license that authorizes 
        fishing for groundfish pursuant to the license limitation 
        program under part 679 of title 50, Code of Federal 
        Regulations, as in effect on the date of enactment of the Coast 
        Guard Authorization Act for Fiscal Years 2010 and 2011.
            ``(7) Authority of pacific council.--Nothing in this 
        section shall be construed to diminish or otherwise affect the 
        authority of the Pacific Council to recommend to the Secretary 
        conservation and management measures to protect fisheries under 
        its jurisdiction (including the Pacific whiting fishery) and 
        participants in such fisheries from adverse impacts caused by 
        this Act.''.
            (2) Exemption of certain vessels.--Section 203(g) of the 
        American Fisheries Act (title II of division C of Public Law 
        105-277; 112 Stat. 2681-620) is amended--
                    (A) by inserting ``and'' after ``(United States 
                official number 651041)'';
                    (B) by striking ``, NORTHERN TRAVELER (United 
                States official number 635986), and NORTHERN VOYAGER 
                (United States official number 637398) (or a 
                replacement vessel for the NORTHERN VOYAGER that 
                complies with paragraphs (2), (5), and (6) of section 
                208(g) of this Act)''; and
                    (C) by striking ``, in the case of the NORTHERN'' 
                and all that follows through ``PHOENIX,''.
            (3) Fishery cooperative exit provisions.--Section 210(b) of 
        the American Fisheries Act (title II of division C of Public 
        Law 105-277; 112 Stat. 2681-629) is amended--
                    (A) by moving the matter beginning with ``the 
                Secretary shall'' in paragraph (1) 2 ems to the right; 
                and
                    (B) by adding at the end the following:
            ``(7) Fishery cooperative exit provisions.--
                    ``(A) Fishing allowance determination.--For 
                purposes of determining the aggregate percentage of 
                directed fishing allowances under paragraph (1), when a 
                catcher vessel is removed from the directed pollock 
                fishery, the fishery allowance for pollock for the 
                vessel being removed--
                            ``(i) shall be based on the catch history 
                        determination for the vessel made pursuant to 
                        section 679.62 of title 50, Code of Federal 
                        Regulations, as in effect on the date of 
                        enactment of the Coast Guard Authorization Act 
                        of 2008; and
                            ``(ii) shall be assigned, for all purposes 
                        under this title, in the manner specified by 
                        the owner of the vessel being removed to any 
                        other catcher vessel or among other catcher 
                        vessels participating in the fishery 
                        cooperative if such vessel or vessels remain in 
                        the fishery cooperative for at least one year 
                        after the date on which the vessel being 
                        removed leaves the directed pollock fishery.
                    ``(B) Eligibility for fishery endorsement.--Except 
                as provided in subparagraph (C), a vessel that is 
                removed pursuant to this paragraph shall be permanently 
                ineligible for a fishery endorsement, and any claim 
                (including relating to catch history) associated with 
                such vessel that could qualify any owner of such vessel 
                for any permit to participate in any fishery within the 
                exclusive economic zone of the United States shall be 
                extinguished, unless such removed vessel is thereafter 
                designated to replace a vessel to be removed pursuant 
                to this paragraph.
                    ``(C) Limitations on statutory construction.--
                Nothing in this paragraph shall be construed--
                            ``(i) to make the vessels AJ (United States 
                        official number 905625), DONA MARTITA (United 
                        States official number 651751), NORDIC EXPLORER 
                        (United States official number 678234), and 
                        PROVIDIAN (United States official number 
                        1062183) ineligible for a fishery endorsement 
                        or any permit necessary to participate in any 
                        fishery under the authority of the New England 
                        Fishery Management Council or the Mid-Atlantic 
                        Fishery Management Council established, 
                        respectively, under subparagraphs (A) and (B) 
                        of section 302(a)(1) of the Magnuson-Stevens 
                        Act; or
                            ``(ii) to allow the vessels referred to in 
                        clause (i) to participate in any fishery under 
                        the authority of the Councils referred to in 
                        clause (i) in any manner that is not consistent 
                        with the fishery management plan for the 
                        fishery developed by the Councils under section 
                        303 of the Magnuson-Stevens Act.''.

                      TITLE VII--VESSEL CONVEYANCE

SEC. 701. SHORT TITLE.

    This title may be cited as the ``Vessel Conveyance Act''.

SEC. 702. CONVEYANCE OF COAST GUARD VESSELS FOR PUBLIC PURPOSES.

    (a) In General.--Whenever the transfer of ownership of a Coast 
Guard vessel to an eligible entity for use for educational, cultural, 
historical, charitable, recreational, or other public purposes is 
authorized by law, the Coast Guard shall transfer the vessel to the 
General Services Administration for conveyance to the eligible entity.
    (b) Conditions of Conveyance.--The General Services Administration 
may not convey a vessel to an eligible entity as authorized by law 
unless the eligible entity agrees--
            (1) to provide the documentation needed by the General 
        Services Administration to process a request for aircraft or 
        vessels under section 102.37.225 of title 41, Code of Federal 
        Regulations;
            (2) to comply with the special terms, conditions, and 
        restrictions imposed on aircraft and vessels under section 102-
        37.460 of such title;
            (3) to make the vessel available to the United States 
        Government if it is needed for use by the Commandant of the 
        Coast Guard in time of war or a national emergency; and
            (4) to hold the United States Government harmless for any 
        claims arising from exposure to hazardous materials, including 
        asbestos and polychlorinated biphenyls, after conveyance of the 
        vessel, except for claims arising from use of the vessel by the 
        United States Government under paragraph (3).
    (c) Eligible Entity Defined.--In this section, the term ``eligible 
entity'' means a State or local government, nonprofit corporation, 
educational agency, community development organization, or other entity 
that agrees to comply with the conditions established under this 
section.
                                 <all>
```