II 

★(Star Print)

Calendar No. 193 

111TH CONGRESS 

1ST SESSION S. 1194 

[Report No. 111–95] 

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, Mrs. 

HUTCHISON, Mrs. MCCASKILL, and Mr. LAUTENBERG) introduced the 

following bill; which was read twice and referred to the Committee on 

Commerce, Science, and Transportation 

OCTOBER 30, 2009 

Reported by Mr. ROCKEFELLER, with an amendment 

[Strike all after the enacting clause and insert the part printed in italic] 

A BILL 

To reauthorize the Coast Guard for fiscal years 2010 and 

2011, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Coast Guard Author5 ization Act for Fiscal Years 2010 and 2011’’. 


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1 SEC. 2. TABLE OF CONTENTS. 

2 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. 


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‘‘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. 

1 TITLE I—AUTHORIZATIONS 

2 SEC. 101. AUTHORIZATION OF APPROPRIATIONS. 

3 Funds are authorized to be appropriated for nec4 essary expenses of the Coast Guard for each of fiscal years 

5 2010 and 2011 as follows: 

6 (1) For the operation and maintenance of the 

7 Coast Guard, $6,556,188,000, of which $24,500,000 

8 is authorized to be derived from the Oil Spill Liabil9 ity Trust Fund to carry out the purposes of section 

10 1012(a)(5) of the Oil Pollution Act of 1990. 

11 (2) For the acquisition, construction, renova12 tion, and improvement of aids to navigation, shore 

13 and offshore facilities, vessels, and aircraft, includ14 ing equipment related thereto, $1,383,980,000, of 


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1 which $20,000,000 shall be derived from the Oil 

2 Spill Liability Trust Fund to carry out the purposes 

3 of section 1012(a)(5) of the Oil Pollution Act of 

4 1990, to remain available until expended; such funds 

5 appropriated for personnel compensation and bene6 fits and related costs of acquisition, construction, 

7 and improvements shall be available for procurement 

8 of services necessary to carry out the Integrated 

9 Deepwater Systems program. 

10 (3) For retired pay (including the payment of 

11 obligations otherwise chargeable to lapsed appropria12 tions for this purpose), payments under the Retired 

13 Serviceman’s Family Protection and Survivor Ben14 efit Plans, and payments for medical care of retired 

15 personnel and their dependents under chapter 55 of 

16 title 10, United States Code, $1,361,245,000. 

17 (4) For environmental compliance and restora18 tion functions under chapter 19 of title 14, United 

19 States Code, $13,198,000. 

20 (5) For research, development, test, and evalua21 tion programs related to maritime technology, 

22 $19,745,000. 

23 (6) For operation and maintenance of the Coast 

24 Guard reserve program, $133,632,000. 


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1 SEC. 102. AUTHORIZED LEVELS OF MILITARY STRENGTH 

2 AND TRAINING. 

3 (a) ACTIVE DUTY STRENGTH.—The Coast Guard is 

4 authorized an end-of-year strength of active duty per5 sonnel of 49,954 as of September 30, 2010, and 52,452 

6 as of September 30, 2011. 

7 (b) MILITARY TRAINING STUDENT LOADS.—The 

8 Coast Guard is authorized average military training stu9 dent loads as follows: 

10 (1) For recruit and special training, 2,500 stu11 dent years for fiscal year 2010, and 2,625 student 

12 years for fiscal year 2011. 

13 (2) For flight training, 170 student years for 

14 fiscal year 2010 and 179 student years for fiscal 

15 year 2011. 

16 (3) For professional training in military and ci17 vilian institutions, 350 student years for fiscal year 

18 2010 and 368 student years for fiscal year 2011. 

19 (4) For officer acquisition, 1,300 student years 

20 for fiscal year 2010 and 1,365 student years for fis21 cal year 2011. 


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1 TITLE II—ADMINISTRATION 

2 SEC. 201. AUTHORITY TO DISTRIBUTE FUNDS THROUGH 

3 GRANTS, COOPERATIVE AGREEMENTS, AND 

4 CONTRACTS TO MARITIME AUTHORITIES AND 

5 ORGANIZATIONS. 

6 Section 149 of title 14, United States Code, is 

7 amended by adding at the end the following: 

8 ‘‘(c) GRANTS TO INTERNATIONAL MARITIME ORGA9 NIZATIONS.—The Commandant may, after consultation 

10 with the Secretary of State, make grants to, or enter into 

11 cooperative agreements, contracts, or other agreements 

12 with, international maritime organizations for the purpose 

13 of acquiring information or data about merchant vessel in14 spections, security, safety and environmental require15 ments, classification, and port state or flag state law en16 forcement or oversight.’’. 

17 SEC. 202. ASSISTANCE TO FOREIGN GOVERNMENTS AND 

18 MARITIME AUTHORITIES. 

19 Section 149 of title 14, United States Code, as 

20 amended by section 201, is further amended by adding 

21 at the end the following: 

22 ‘‘(d) AUTHORIZED ACTIVITIES.— 

23 ‘‘(1) The Commandant may transfer or expend 

24 funds from any appropriation available to the Coast 

25 Guard for— 


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1 ‘‘(A) the activities of traveling contact 

2 teams, including any transportation expense, 

3 translation services expense, or administrative 

4 expense that is related to such activities; 

5 ‘‘(B) the activities of maritime authority li6 aison teams of foreign governments making re7 ciprocal visits to Coast Guard units, including 

8 any transportation expense, translation services 

9 expense, or administrative expense that is re10 lated to such activities; 

11 ‘‘(C) seminars and conferences involving 

12 members of maritime authorities of foreign gov13 ernments; 

14 ‘‘(D) distribution of publications pertinent 

15 to engagement with maritime authorities of for16 eign governments; and 

17 ‘‘(E) personnel expenses for Coast Guard 

18 civilian and military personnel to the extent 

19 that those expenses relate to participation in an 

20 activity described in subparagraph (C) or (D). 

21 ‘‘(2) An activity may not be conducted under 

22 this subsection with a foreign country unless the 

23 Secretary of State approves the conduct of such ac24 tivity in that foreign country.’’. 


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1 SEC. 203. COOPERATIVE AGREEMENTS FOR INDUSTRIAL 

2 ACTIVITIES. 

3 Section 151 of title 14, United States Code, is 

4 amended— 

5 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

6 ‘‘All orders’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(b) ORDERS AND AGREEMENTS FOR INDUSTRIAL

9 ACTIVITIES.—Under this section, the Coast Guard indus10 trial activities may accept orders and enter into reimburs11 able agreements with establishments, agencies, and de12 partments of the Department of Defense and the Depart13 ment of Homeland Security.’’. 

14 SEC. 204. DEFINING COAST GUARD VESSELS AND AIR15 CRAFT. 

16 (a) IN GENERAL.—Chapter 17 of title 14, United 

17 States Code, is amended by inserting after section 638 the 

18 following new section: 

19 ‘‘§ 638a. Coast Guard vessels and aircraft defined 

20 ‘‘For the purposes of sections 637 and 638 of this 

21 title, the term Coast Guard vessels and aircraft means— 

22 ‘‘(1) any vessel or aircraft owned, leased, trans23 ferred to, or operated by the Coast Guard and under 

24 the command of a Coast Guard member; or 

25 ‘‘(2) any other vessel or aircraft under the tac26 tical control of the Coast Guard on which one or 


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1 more members of the Coast Guard are assigned and 

2 conducting Coast Guard missions.’’. 

3 (b) CLERICAL AMENDMENT.—The table of contents 

4 for chapter 17 of such title is amended by inserting after 

5 the item relating to section 638 the following: 

‘‘638a. Coast Guard vessels and aircraft defined.’’. 

6 TITLE III—ORGANIZATION 

7 SEC. 301. VICE COMMANDANT; VICE ADMIRALS. 

8 (a) VICE COMMANDANT.—The fourth sentence of sec9 tion 47 of title 14, United States Code, is amended by 

10 striking ‘‘vice admiral’’ and inserting ‘‘admiral’’. 

11 (b) VICE ADMIRALS.—Section 50 of such title is 

12 amended to read as follows: 

13 ‘‘§ 50. Vice admirals 

14 ‘‘(a)(1) The President may designate no more than 

15 4 positions of importance and responsibility that shall be 

16 held by officers who— 

17 ‘‘(A) while so serving, shall have the grade of 

18 vice admiral, with the pay and allowances of that 

19 grade; and 

20 ‘‘(B) shall perform such duties as the Com21 mandant may prescribe. 

22 ‘‘(2) The President may appoint, by and with the ad23 vice and consent of the Senate, and reappoint, by and with 

24 the advice and consent of the Senate, to any such position 

25 an officer of the Coast Guard who is serving on active 


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1 duty above the grade of captain. The Commandant shall 

2 make recommendations for such appointments. 

3 ‘‘(b)(1) The appointment and the grade of vice admi4 ral shall be effective on the date the officer assumes that 

5 duty and, except as provided in paragraph (2) of this sub6 section or in section 51(d) of this title, shall terminate 

7 on the date the officer is detached from that duty. 

8 ‘‘(2) An officer who is appointed to a position des9 ignated under subsection (a) shall continue to hold the 

10 grade of vice admiral— 

11 ‘‘(A) while under orders transferring the officer 

12 to another position designated under subsection (a), 

13 beginning on the date the officer is detached from 

14 that duty and terminating on the date before the 

15 day the officer assumes the subsequent duty, but not 

16 for more than 60 days; 

17 ‘‘(B) while hospitalized, beginning on the day of 

18 the hospitalization and ending on the day the officer 

19 is discharged from the hospital, but not for more 

20 than 180 days; and 

21 ‘‘(C) while awaiting retirement, beginning on 

22 the date the officer is detached from duty and end23 ing on the day before the officer’s retirement, but 

24 not for more than 60 days. 


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1 ‘‘(c)(1) An appointment of an officer under sub2 section (a) does not vacate the permanent grade held by 

3 the officer. 

4 ‘‘(2) An officer serving in a grade above rear admiral 

5 who holds the permanent grade of rear admiral (lower 

6 half) shall be considered for promotion to the permanent 

7 grade of rear admiral as if the officer was serving in the 

8 officer’s permanent grade. 

9 ‘‘(d) Whenever a vacancy occurs in a position des10 ignated under subsection (a), the Commandant shall in11 form the President of the qualifications needed by an offi12 cer serving in that position or office to carry out effectively 

13 the duties and responsibilities of that position or office.’’. 

14 (c) REPEAL.—Section 50a of such title is repealed. 

15 (d) CONFORMING AMENDMENTS.—Section 51 of such 

16 title is amended— 

17 (1) by striking subsections (a), (b), and (c) and 

18 inserting the following: 

19 ‘‘(a) An officer, other than the Commandant, who, 

20 while serving in the grade of admiral or vice admiral, is 

21 retired for physical disability shall be placed on the retired 

22 list with the highest grade in which that officer served. 

23 ‘‘(b) An officer, other than the Commandant, who is 

24 retired while serving in the grade of admiral or vice admiral, or who, after serving at least 21 25 ⁄2 years in the grade 


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1 of admiral or vice admiral, is retired while serving in a 

2 lower grade, may in the discretion of the President, be 

3 retired with the highest grade in which that officer served. 

4 ‘‘(c) An officer, other than the Commandant, who, 

after serving less than 21 5 ⁄2 years in the grade of admiral 

6 or vice admiral, is retired while serving in a lower grade, 

7 shall be retired in his permanent grade.’’; and 

8 (2) by striking ‘‘Area Commander, or Chief of 

9 Staff’’ in subsection (d)(2) and inserting ‘‘or Vice 

10 Admiral’’. 

11 (e) CLERICAL AMENDMENTS.— 

12 (1) The section caption for section 47 of such 

13 title is amended to read as follows: 

14 ‘‘§ 47. Vice commandant; appointment’’. 

15 (2) The table of contents for chapter 3 of such 

16 title is amended— 

17 (A) by striking the item relating to section 

18 47 and inserting the following: 

‘‘47. Vice Commandant; appointment.’’; 

19 (B) by striking the item relating to section 

20 50a; and 

21 (C) by striking the item relating to section 

22 50 and inserting the following: 

‘‘50. Vice admirals.’’. 


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1 (f) TECHNICAL CORRECTION.—Section 47 of such 

2 title is further amended by striking ‘‘subsection’’ in the 

3 fifth sentence and inserting ‘‘section’’. 

4 (g) TREATMENT OF INCUMBENTS; TRANSITION.— 

5 (1) Notwithstanding any other provision of law, 

6 the officer who, on the date of enactment of this 

7 Act, is serving as Vice Commandant— 

8 (A) shall continue to serve as Vice Com9 mandant; 

10 (B) shall have the grade of admiral with 

11 pay and allowances of that grade; and 

12 (C) shall not be required to be reappointed 

13 by reason of the enactment of that Act. 

14 (2) Notwithstanding any other provision of law, 

15 an officer who, on the date of enactment of this Act, 

16 is serving as Chief of Staff, Commander, Atlantic 

17 Area, or Commander, Pacific Area— 

18 (A) shall continue to have the grade of vice 

19 admiral with pay and allowance of that grade 

20 until such time that the officer is relieved of his 

21 duties and appointed and confirmed to another 

22 position as a vice admiral or admiral; and 

23 (B) for the purposes of transition, may 

24 continue, for not more than 1 year after the 

25 date of enactment of this Act, to perform the 


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1 duties of the officer’s former position and any 

2 other such duties that the Commandant pre3 scribes. 

4 SEC. 302. NUMBER AND DISTRIBUTION OF COMMISSIONED 

5 OFFICERS ON THE ACTIVE DUTY PROMOTION 

6 LIST. 

7 (a) IN GENERAL.—Section 42 of title 14, United 

8 States Code, is amended— 

9 (1) by striking subsections (a), (b), and (c) and 

10 inserting the following: 

11 ‘‘(a) The total number of Coast Guard commissioned 

12 officers on the active duty promotion list, excluding war13 rant officers, shall not exceed 7,200. This total number 

14 may be temporarily increased up to 2 percent for no more 

15 than the 60 days that follow the commissioning of a Coast 

16 Guard Academy class. 

17 ‘‘(b) The total number of commissioned officers au18 thorized by this section shall be distributed in grade not 

19 to exceed the following percentages: 

20 ‘‘(1) 0.375 percent for rear admiral. 

21 ‘‘(2) 0.375 percent for rear admiral (lower 

22 half). 

23 ‘‘(3) 6.0 percent for captain. 

24 ‘‘(4) 15.0 percent for commander. 

25 ‘‘(5) 22.0 percent for lieutenant commander. 


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1 The Secretary shall prescribe the percentages applicable 

2 to the grades of lieutenant, lieutenant (junior grade), and 

3 ensign. The Secretary may, as the needs of the Coast 

4 Guard require, reduce any of the percentages set forth in 

5 paragraphs (1) through (5) and apply that total percent6 age reduction to any other lower grade or combination of 

7 lower grades. 

8 ‘‘(c) The Secretary shall, at least once a year, com9 pute the total number of commissioned officers authorized 

10 to serve in each grade by applying the grade distribution 

11 percentages of this section to the total number of commis12 sioned officers listed on the current active duty promotion 

13 list. In making such calculations, any fraction shall be 

14 rounded to the nearest whole number. The number of com15 missioned officers on the active duty promotion list serving 

16 with other departments or agencies on a reimbursable 

17 basis or excluded under the provisions of section 324(d) 

18 of title 49, shall not be counted against the total number 

19 of commissioned officers authorized to serve in each 

20 grade.’’; 

21 (2) by striking subsection (e) and inserting the 

22 following: 

23 ‘‘(e) The number of officers authorized to be serving 

24 on active duty in each grade of the permanent commis25 sioned teaching staff of the Coast Guard Academy and 


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1 of the Reserve serving in connection with organizing, ad2 ministering, recruiting, instructing, or training the reserve 

3 components shall be prescribed by the Secretary.’’; and 

4 (3) by striking the caption of such section and 

5 inserting the following: 

6 ‘‘§ 42. Number and distribution of commissioned offi7 cers on the active duty promotion list’’. 

8 (b) CLERICAL AMENDMENT.—The table of contents 

9 for chapter 3 of such title is amended by striking the item 

10 relating to section 42 and inserting the following: 

‘‘42. Number and distribution of commissioned officers on the active duty promotion list.’’. 

11 TITLE IV—PERSONNEL 

12 SEC. 401. LEAVE RETENTION AUTHORITY. 

13 Section 701(f)(2) of title 10, United States Code, is 

14 amended by inserting ‘‘or a declaration of a major disaster 

15 or emergency by the President under the Robert T. Staf16 ford Disaster Relief and Emergency Assistance Act (Pub17 lic Law 93–288, 42 U.S.C. 5121 et seq.)’’ after ‘‘oper18 ation’’. 

19 SEC. 402. LEGAL ASSISTANCE FOR COAST GUARD RESERV20 ISTS. 

21 Section 1044(a)(4) of title 10, United States Code, 

22 is amended— 

23 (1) by striking ‘‘(as determined by the Sec24 retary of Defense),’’ and inserting ‘‘(as determined 


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1 by the Secretary of Defense and the Secretary of the 

2 department in which the Coast Guard is operating, 

3 with respect to the Coast Guard when it is not oper4 ating as a service of the Navy),’’; and 

5 (2) by striking ‘‘prescribed by the Secretary of 

6 Defense,’’ and inserting ‘‘prescribed by Secretary of 

7 Defense and the Secretary of the department in 

8 which the Coast Guard is operating, with respect to 

9 the Coast Guard when it is not operating as a serv10 ice of the Navy,’’. 

11 SEC. 403. REIMBURSEMENT FOR CERTAIN MEDICAL-RE12 LATED TRAVEL EXPENSES. 

13 Section 1074i(a) of title 10, United States Code, is 

14 amended— 

15 (1) by striking ‘‘IN GENERAL.—In’’ and insert16 ing ‘‘IN GENERAL.—(1) In’’; and 

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

18 ‘‘(2) In any case in which a covered beneficiary re19 sides on an INCONUS island that lacks public access 

20 roads to the mainland and is referred by a primary care 

21 physician to a specialty care provider on the mainland who 

22 provides services less than 100 miles from the location in 

23 which the beneficiary resides, the Secretary shall reim24 burse the reasonable travel expenses of the covered bene25 ficiary, and, when accompaniment by an adult is necVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6401 E:\BILLS\S1194.RS S1194

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1 essary, for a parent or guardian of the covered beneficiary 

2 or another member of the covered beneficiary’s family who 

3 is at least 21 years of age.’’. 

4 SEC. 404. RESERVE COMMISSIONED WARRANT OFFICER TO 

5 LIEUTENANT PROGRAM. 

6 Section 214(a) of title 14, United States Code, is 

7 amended to read as follows: 

8 ‘‘(a) The President may appoint temporary commis9 sioned officers— 

10 ‘‘(1) in the Regular Coast Guard in a grade, 

11 not above lieutenant, appropriate to their qualifica12 tions, experience, and length of service, as the needs 

13 of the Coast Guard may require, from among the 

14 commissioned warrant officers, warrant officers, and 

15 enlisted members of the Coast Guard, and from li16 censed officers of the United States merchant ma17 rine; and 

18 ‘‘(2) in the Coast Guard Reserve in a grade, 

19 not above lieutenant, appropriate to their qualifica20 tions, experience, and length of service, as the needs 

21 of the Coast Guard may require, from among the 

22 commissioned warrant officers of the Coast Guard 

23 Reserve.’’. 


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1 SEC. 405. ENHANCED STATUS QUO OFFICER PROMOTION 

2 SYSTEM. 

3 (a) Section 253(a) of title 14, United States Code, 

4 is amended— 

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

6 (2) by striking ‘‘consideration, and the number 

7 of officers the board may recommend for promotion’’ 

8 and inserting ‘‘consideration’’. 

9 (b) Section 258 of such title is amended— 

10 (1) by inserting ‘‘(a)’’ before ‘‘The Secretary’’; 

11 and 

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

13 ‘‘(b) In addition to the information provided pursuant 

14 to subsection (a), the Secretary may furnish the selection 

15 board— 

16 ‘‘(1) specific direction relating to the needs of 

17 the service for officers having particular skills, in18 cluding direction relating to the need for a minimum 

19 number of officers with particular skills within a 

20 specialty; and 

21 ‘‘(2) such other guidance that the Secretary be22 lieves may be necessary to enable the board to prop23 erly perform its functions. 

24 Selections made based on the direction and guidance pro25 vided under this subsection shall not exceed the maximum 

26 percentage of officers who may be selected from below the 


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1 announced promotion zone at any given selection board 

2 convened under section 251 of this title.’’. 

3 (c) Section 259(a) of such title is amended by strik4 ing ‘‘board’’ the second place it appears and inserting 

5 ‘‘board, giving due consideration to the needs of the serv6 ice for officers with particular skills so noted in the spe7 cific direction furnished pursuant to section 258 of this 

8 title,’’. 

9 (d) Section 260(b) of such title is amended by insert10 ing ‘‘to meet the needs of the service (as noted in the spe11 cific direction furnished the board under section 258 of 

12 this title)’’ after ‘‘qualified for promotion’’. 

13 SEC. 406. APPOINTMENT OF CIVILIAN COAST GUARD 

14 JUDGES. 

15 Section 875 of the Homeland Security Act of 2002 

16 (6 U.S.C. 455) is amended— 

17 (1) by redesignating subsection (c) as sub18 section (d); and 

19 (2) by inserting after subsection (b) the fol20 lowing: 

21 ‘‘(c) APPOINTMENT OF JUDGES.—The Secretary may 

22 appoint civilian employees of the Department of Homeland 

23 Security as appellate military judges, available for assign24 ment to the Coast Guard Court of Criminal Appeals as 


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1 provided for in section 866(a) of title 10, United States 

2 Code.’’. 

3 SEC. 407. COAST GUARD PARTICIPATION IN THE ARMED 

4 FORCES RETIREMENT HOME SYSTEM. 

5 (a) ELIGIBILITY UNDER THE ARMED FORCES RE6 TIREMENT HOME ACT.—Section 1502 of the Armed 

7 Forces Retirement Home Act of 1991 (24 U.S.C. 401) 

8 is amended— 

9 (1) by striking ‘‘does not include the Coast 

10 Guard when it is not operating as a service of the 

11 Navy.’’ in paragraph (4) and inserting ‘‘has the 

12 meaning given such term in section 101(4) of title 

13 10.’’; 

14 (2) by striking ‘‘and’’ in paragraph (5)(C); 

15 (3) by striking ‘‘Affairs.’’ in paragraph (5)(D) 

16 and inserting ‘‘Affairs; and’’; 

17 (4) by adding at the end of paragraph (5) the 

18 following: 

19 ‘‘(E) the Assistant Commandant of the 

20 Coast Guard for Human Resources.’’; and 

21 (5) by adding at the end of paragraph (6) the 

22 following: 

23 ‘‘(E) The Master Chief Petty Officer of the 

24 Coast Guard.’’. 

25 (b) DEDUCTIONS.— 


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1 (1) Section 2772 of title 10, United States 

2 Code, is amended— 

3 (A) by striking ‘‘of the military depart4 ment’’ in subsection (a); 

5 (B) by striking ‘‘Armed Forces Retirement 

6 Home Board’’ in subsection (b) and inserting 

7 ‘‘Chief Operating Officer of the Armed Forces 

8 Retirement Home’’; and 

9 (C) by striking subsection (c). 

10 (2) Section 1007(i) of title 37, United States 

11 Code, is amended— 

12 (A) by striking ‘‘Armed Forces Retirement 

13 Home Board,’’ in paragraph (3) and inserting 

14 ‘‘Chief Operating Officer of the Armed Forces 

15 Retirement Home,’’; and 

16 (B) by striking ‘‘does not include the Coast 

17 Guard when it is not operating as a service of 

18 the Navy.’’ in paragraph (4) and inserting ‘‘has 

19 the meaning given such term in section 101(4) 

20 of title 10.’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall take effect on the first day of the first 

23 pay period beginning on or after January 1, 2010. 


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1 TITLE V—ACQUISITION REFORM 

2 SEC. 501. CHIEF ACQUISITION OFFICER. 

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

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘§ 55. Chief Acquisition Officer 

7 ‘‘(a) IN GENERAL.—There shall be in the Coast 

8 Guard a Chief Acquisition Officer selected by the Com9 mandant who shall be a Rear Admiral or civilian from the 

10 Senior Executive Service (career reserved). The Chief Ac11 quisition Officer shall serve at the Assistant Commandant 

12 level and have acquisition management as that individual’s 

13 primary duty. 

14 ‘‘(b) QUALIFICATIONS.—The Chief Acquisition Offi15 cer shall be an acquisition professional with a Level III 

16 certification and must have at least 10 years experience 

17 in an acquisition position, of which at least 4 years were 

18 spent as— 

19 ‘‘(1) the program executive officer; 

20 ‘‘(2) the program manager of a Level 1 or 

21 Level 2 acquisition project or program; 

22 ‘‘(3) the deputy program manager of a Level 1 

23 or Level 2 acquisition; or 

24 ‘‘(4) a combination of such positions. 


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1 ‘‘(c) FUNCTIONS OF THE CHIEF ACQUISITION OFFI2 CER.—The functions of the Chief Acquisition Officer in3 clude— 

4 ‘‘(1) monitoring the performance of programs 

5 and projects on the basis of applicable performance 

6 measurements and advising the Commandant, 

7 through the chain of command, regarding the appro8 priate business strategy to achieve the missions of 

9 the Coast Guard; 

10 ‘‘(2) maximizing the use of full and open com11 petition at the prime contract and subcontract levels 

12 in the acquisition of property, capabilities, and serv13 ices by the Coast Guard by establishing policies, pro14 cedures, and practices that ensure that the Coast 

15 Guard receives a sufficient number of competitive 

16 proposals from responsible sources to fulfill the Gov17 ernment’s requirements, including performance and 

18 delivery schedules, at the lowest cost or best value 

19 considering the nature of the property or service 

20 procured; 

21 ‘‘(3) making acquisition decisions in concur22 rence with the technical authority, or technical au23 thorities, as appropriate, of the Coast Guard, as des24 ignated by the Commandant, consistent with all 


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1 other applicable laws and decisions establishing pro2 cedures within the Coast Guard; 

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

4 specifications in instances in which performance 

5 based contracting is used; 

6 ‘‘(5) managing the direction of acquisition pol7 icy for the Coast Guard, including implementation of 

8 the unique acquisition policies, regulations, and 

9 standards of the Coast Guard; 

10 ‘‘(6) developing and maintaining an acquisition 

11 career management program in the Coast Guard to 

12 ensure that there is an adequate acquisition work13 force; 

14 ‘‘(7) assessing the requirements established for 

15 Coast Guard personnel regarding knowledge and 

16 skill in acquisition resources and management and 

17 the adequacy of such requirements for facilitating 

18 the achievement of the performance goals established 

19 for acquisition management; 

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

21 hiring, training, and professional development; and 

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

23 chain of command, on the progress made in improv24 ing acquisition management capability.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents 

2 for chapter 3 of title 14, United States Code, is amended 

3 by adding at the end the following: 

‘‘55. Chief Acquisition Officer.’’. 

4 (c) SELECTION DEADLINE.—As soon as practicable 

5 after the date of enactment of this Act, but no later than 

6 October 1, 2011, the Commandant of the Coast Guard 

7 shall select a Chief Acquisition Officer under section 55 

8 of title 14, United States Code. 

9 SEC. 502. ACQUISITIONS. 

10 (a) IN GENERAL.—Part I of title 14, United States 

11 Code, is amended by inserting after chapter 13 the fol12 lowing: 

13 ‘‘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 


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1 ‘‘SUBCHAPTER 1—GENERAL PROVISIONS

2 ‘‘§ 561. Acquisition directorate 

3 ‘‘(a) ESTABLISHMENT.—The Commandant of the 

4 Coast Guard shall establish an acquisition directorate to 

5 provide guidance and oversight for the implementation 

6 and management of all Coast Guard acquisition processes, 

7 programs, and projects. 

8 ‘‘(b) MISSION.—The mission of the acquisition direc9 torate is— 

10 ‘‘(1) to acquire and deliver assets and systems 

11 that increase operational readiness, enhance mission 

12 performance, and create a safe working environ13 ment; and 

14 ‘‘(2) to assist in the development of a workforce 

15 that is trained and qualified to further the Coast 

16 Guard’s missions and deliver the best value products 

17 and services to the Nation. 

18 ‘‘§ 562. Senior acquisition leadership team 

19 ‘‘(a) ESTABLISHMENT.—The Commandant shall es20 tablish a senior acquisition leadership team within the 

21 Coast Guard comprised of— 

22 ‘‘(1) the Vice Commandant; 

23 ‘‘(2) the Deputy and Assistant Commandants; 

24 ‘‘(3) appropriate senior staff members of each 

25 Coast Guard directorate; 


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1 ‘‘(4) appropriate senior staff members for each 

2 assigned field activity or command; and 

3 ‘‘(5) any other Coast Guard officer or employee 

4 designated by the Commandant. 

5 ‘‘(b) FUNCTION.—The senior acquisition leadership 

6 team shall— 

7 ‘‘(1) meet at the call of the Commandant at 

8 such places and such times as the Commandant may 

9 require; 

10 ‘‘(2) provide advice and information on oper11 ational and performance requirements of the Coast 

12 Guard; 

13 ‘‘(3) identify gaps and vulnerabilities in the 

14 operational readiness of the Coast Guard; 

15 ‘‘(4) make recommendations to the Com16 mandant and the Chief Acquisition Officer to rem17 edy the identified gaps and vulnerabilities in the 

18 operational readiness of the Coast Guard; and 

19 ‘‘(5) contribute to the development of a profes20 sional, experienced acquisition workforce by pro21 viding acquisition-experience tours of duty and edu22 cational development for officers and employees of 

23 the Coast Guard. 


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1 ‘‘§ 563. Improvements in Coast Guard acquisition 

2 management 

3 ‘‘(a) PROJECT AND PROGRAM MANAGERS.— 

4 ‘‘(1) PROJECT OR PROGRAM MANAGER DE5 FINED.—In this section, the term ‘project or pro6 gram manager’ means an individual designated— 

7 ‘‘(A) to develop, produce, and deploy a new 

8 asset to meet identified operational require9 ments; and 

10 ‘‘(B) to manage cost, schedule, and per11 formance of the acquisition or project or pro12 gram. 

13 ‘‘(2) LEVEL 1 PROJECTS.— An individual may 

14 not be assigned as the project or program manager 

15 for a Level 1 acquisition unless the individual holds 

16 a Level III acquisition certification as a program 

17 manager. 

18 ‘‘(3) LEVEL 2 PROJECTS.—An individual may 

19 not be assigned as the project or program manager 

20 for a Level 2 acquisition unless the individual holds 

21 a Level II acquisition certification as a program 

22 manager. 

23 ‘‘(b) GUIDANCE ON TENURE AND ACCOUNTABILITY

24 OF PROGRAM AND PROJECT MANAGERS.—Not later than 

25 one year after the date of enactment of the Coast Guard 

26 Authorization Act for Fiscal years 2010 and 2011, the 


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1 Commandant shall issue guidance to address the qualifica2 tions, resources, responsibilities, tenure, and account3 ability of program and project managers for the manage4 ment of acquisition programs and projects. The guidance 

5 shall address, at a minimum— 

6 ‘‘(1) the qualifications required for project or 

7 program managers, including the number of years of 

8 acquisition experience and the professional training 

9 levels to be required of those appointed to project or 

10 program management positions; and 

11 ‘‘(2) authorities available to project or program 

12 managers, including, to the extent appropriate, the 

13 authority to object to the addition of new program 

14 requirements that would be inconsistent with the pa15 rameters established for an acquisition program. 

16 ‘‘(c) ACQUISITION WORKFORCE.— 

17 ‘‘(1) IN GENERAL.—The Commandant shall 

18 designate a sufficient number of positions to be in 

19 the Coast Guard’s acquisition workforce to perform 

20 acquisition-related functions at Coast Guard head21 quarters and field activities. 

22 ‘‘(2) REQUIRED POSITIONS.—The Commandant 

23 shall ensure that members of the acquisition work24 force have expertise, education, and training in at 

25 least 1 of the following acquisition career fields: 


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1 ‘‘(A) Acquisition logistics. 

2 ‘‘(B) Auditing. 

3 ‘‘(C) Business, cost estimating, and finan4 cial management. 

5 ‘‘(D) Contracting. 

6 ‘‘(E) Facilities engineering. 

7 ‘‘(F) Industrial or contract property man8 agement. 

9 ‘‘(G) Information technology. 

10 ‘‘(H) Manufacturing, production, and qual11 ity assurance. 

12 ‘‘(I) Program management. 

13 ‘‘(J) Purchasing. 

14 ‘‘(K) Science and technology. 

15 ‘‘(L) Systems planning, research, develop16 ment, and engineering. 

17 ‘‘(M) Test and evaluation. 

18 ‘‘(3) ACQUISITION WORKFORCE EXPEDITED

19 HIRING AUTHORITY.— 

20 ‘‘(A) IN GENERAL.—For purposes of sec21 tions 3304, 5333, and 5753 of title 5, the Com22 mandant may— 

23 ‘‘(i) designate any category of acquisi24 tion positions within the Coast Guard as 

25 shortage category positions; and 


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1 ‘‘(ii) use the authorities in such sec2 tions to recruit and appoint highly quali3 fied person directly to positions so des4 ignated. 

5 ‘‘(B) LIMITATION.—The Commandant may 

6 not appoint a person to a position of employ7 ment under this paragraph after September 30, 

8 2012. 

9 ‘‘(d) MANAGEMENT INFORMATION SYSTEM.— 

10 ‘‘(1) IN GENERAL.—The Commandant shall es11 tablish a management information system capability 

12 to improve acquisition workforce management and 

13 reporting. 

14 ‘‘(2) INFORMATION MAINTAINED.—Information 

15 maintained with such capability shall include the fol16 lowing standardized information on individuals as17 signed to positions in the workforce: 

18 ‘‘(A) Qualifications, assignment history, 

19 and tenure of those individuals assigned to posi20 tions in the acquisition workforce or holding ac21 quisition-related certifications. 

22 ‘‘(B) Promotion rates for officers and 

23 members of the Coast Guard in the acquisition 

24 workforce. 


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1 ‘‘(e) CAREER PATHS.—To establish acquisition man2 agement as a core competency of the Coast Guard, the 

3 Commandant shall— 

4 ‘‘(1) ensure that career paths for officers, mem5 bers, and employees of the Coast Guard who wish to 

6 pursue careers in acquisition are identified in terms 

7 of the education, training, experience, and assign8 ments necessary for career progression of those offi9 cers, members, and employees to the most senior po10 sitions in the acquisition workforce; and 

11 ‘‘(2) publish information on such career paths. 

12 ‘‘§ 564. Recognition of Coast Guard personnel for ex13 cellence in acquisition 

14 ‘‘(a) IN GENERAL.—Not later than 180 days after 

15 the date of enactment of the Coast Guard Authorization 

16 Act for Fiscal Years 2010 and 2011, the Commandant 

17 shall commence implementation of a program to recognize 

18 excellent performance by individuals and teams comprised 

19 of officers, members, and employees of the Coast Guard 

20 that contributed to the long-term success of a Coast Guard 

21 acquisition project or program. 

22 ‘‘(b) ELEMENTS.—The program shall include— 

23 ‘‘(1) specific award categories, criteria, and eli24 gibility and manners of recognition; 


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1 ‘‘(2) procedures for the nomination by per2 sonnel of the Coast Guard of individuals and teams 

3 comprised of officers, members, and employees of 

4 the Coast Guard for recognition under the program; 

5 and 

6 ‘‘(3) procedures for the evaluation of nomina7 tions for recognition under the program by one or 

8 more panels of individuals from the Government, 

9 academia, and the private sector who have such ex10 pertise and are appointed in such manner as the 

11 Commandant shall establish for the purposes of this 

12 program. 

13 ‘‘(c) AWARD OF CASH BONUSES.—As part of the pro14 gram required by subsection (a), the Commandant, sub15 ject to the availability of appropriations, may award to any 

16 civilian employee recognized pursuant to the program a 

17 cash bonus to the extent that the performance of such in18 dividual so recognized warrants the award of such bonus. 

19 ‘‘§ 565. Prohibition on use of lead systems integrators 

20 ‘‘(a) IN GENERAL.— 

21 ‘‘(1) USE OF LEAD SYSTEMS INTEGRATOR.— 

22 Except as provided in subsection (b), the Com23 mandant may not use a private sector entity as a 

24 lead systems integrator for an acquisition contract 

25 awarded or delivery order or task order issued after 


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1 the date of enactment of the Coast Guard Author2 ization Act for Fiscal Years 2010 and 2011. 

3 ‘‘(2) FULL AND OPEN COMPETITION.—The 

4 Commandant and any lead systems integrator en5 gaged by the Coast Guard, pursuant to the excep6 tions described in subsection (b), shall use full and 

7 open competition for any acquisition contract award8 ed after the date of enactment of that Act, unless 

9 otherwise excepted in accordance with the Competi10 tion in Contracting Act of 1984 (41 U.S.C. 251 

11 note), the amendments made by that Act, and the 

12 Federal Acquisition Regulations. 

13 ‘‘(3) NO EFFECT ON SMALL BUSINESS ACT.— 

14 Nothing in this subsection shall be construed to su15 persede or otherwise affect the authorities provided 

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

17 631 et seq.). 

18 ‘‘(b) EXCEPTIONS.— 

19 ‘‘(1) NATIONAL DISTRESS AND RESPONSE SYS20 TEM MODERNIZATION PROGRAM; NATIONAL SECU21 RITY CUTTERS 2 AND 3.—Notwithstanding sub22 section (a), the Commandant may use a private sec23 tor entity as a lead systems integrator for the Coast 

24 Guard to complete the National Distress and Re25 sponse System Modernization Program, the C4ISR 


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1 projects directly related to the Integrated Deepwater 

2 Program, and National Security Cutters 2 and 3 if 

3 the Secretary of Homeland Security certifies that— 

4 ‘‘(A) the acquisition is in accordance with 

5 the Competition in Contracting Act of 1984 (41 

6 U.S.C. 251 note), the amendments made by 

7 that Act, and the Federal Acquisition Regula8 tions; and 

9 ‘‘(B) the acquisition and the use of a pri10 vate sector entity as a lead systems integrator 

11 for the acquisition is in the best interest of the 

12 Federal Government. 

13 ‘‘(2) TERMINATION DATE FOR EXCEPTIONS.— 

14 Except for the modification of delivery or task or15 ders pursuant to Parts 4 and 42 of the Federal Ac16 quisition Regulations, the Commandant may not use 

17 a private sector entity as a lead systems integrator 

18 after the earlier of— 

19 ‘‘(A) September 30, 2012; or 

20 ‘‘(B) the date on which the Commandant 

21 certifies in writing to the appropriate congres22 sional committees that the Coast Guard has 

23 available and can retain sufficient contracting 

24 personnel and expertise within the Coast 

25 Guard, through an arrangement with other 


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1 Federal agencies, or through contracts or other 

2 arrangements with private sector entities, to 

3 perform the functions and responsibilities of the 

4 lead system integrator in an efficient and cost5 effective manner. 

6 ‘‘§ 566. Required contract terms 

7 ‘‘(a) IN GENERAL.—The Commandant shall ensure 

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

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

10 an expected service life of 10 years and with a total acqui11 sition cost that is equal to or exceeds $10,000,000 award12 ed or issued by the Coast Guard after the date of enact13 ment of the Coast Guard Authorization Act for Fiscal 

14 Years 2010 and 2011— 

15 ‘‘(1) provides that all certifications for an end16 state capability or asset under such contract, deliv17 ery order, or task order, respectively, will be con18 ducted by the Commandant or an independent third 

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

20 subcontractor is not allowed; 

21 ‘‘(2) requires that the Commandant shall main22 tain the authority to establish, approve, and main23 tain technical requirements; 

24 ‘‘(3) requires that any measurement of con25 tractor and subcontractor performance be based on 


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1 the status of all work performed, including the ex2 tent to which the work performed met all perform3 ance, cost, and schedule requirements; 

4 ‘‘(4) specifies that, for the acquisition or up5 grade of air, surface, or shore capabilities and assets 

6 for which compliance with TEMPEST certification 

7 is a requirement, the standard for determining such 

8 compliance will be the air, surface, or shore standard 

9 then used by the Department of the Navy for that 

10 type of capability or asset; and 

11 ‘‘(5) for any contract awarded to acquire an 

12 Offshore Patrol Cutter, includes provisions speci13 fying the service life, fatigue life, and days underway 

14 in general Atlantic and North Pacific Sea conditions, 

15 maximum range, and maximum speed the cutter will 

16 be built to achieve. 

17 ‘‘(b) PROHIBITED CONTRACT PROVISIONS.—The 

18 Commandant shall ensure that any contract awarded or 

19 delivery order or task order issued by the Coast Guard 

20 after the date of enactment of the Coast Guard Authoriza21 tion Act for Fiscal Years 2010 and 2011 does not include 

22 any provision allowing for equitable adjustment that is not 

23 consistent with the Federal Acquisition Regulations. 

24 ‘‘(c) INTEGRATED PRODUCT TEAMS.—Integrated 

25 product teams, and all teams that oversee integrated prodVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6401 E:\BILLS\S1194.RS S1194

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1 uct teams, shall be chaired by officers, members, or em2 ployees of the Coast Guard. 

3 ‘‘(d) DEEPWATER TECHNICAL AUTHORITIES.—The 

4 Commandant shall maintain or designate the technical au5 thorities to establish, approve, and maintain technical re6 quirements. Any such designation shall be made in writing 

7 and may not be delegated to the authority of the Chief 

8 Acquisition Officer established by section 55 of this title. 

9 ‘‘§ 567. Department of Defense consultation 

10 ‘‘(a) IN GENERAL.—The Commandant shall make ar11 rangements as appropriate with the Secretary of Defense 

12 for support in contracting and management of Coast 

13 Guard acquisition programs. The Commandant shall also 

14 seek opportunities to make use of Department of Defense 

15 contracts, and contracts of other appropriate agencies, to 

16 obtain the best possible price for assets acquired for the 

17 Coast Guard. 

18 ‘‘(b) INTER-SERVICE TECHNICAL ASSISTANCE.—The 

19 Commandant shall seek to enter into a memorandum of 

20 understanding or a memorandum of agreement with the 

21 Secretary of the Navy to obtain the assistance of the Of22 fice of the Assistant Secretary of the Navy for Research, 

23 Development, and Acquisition, including the Navy Sys24 tems Command, with the oversight of Coast Guard major 

25 acquisition programs. The memorandum of understanding 


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1 or memorandum of agreement shall, at a minimum, pro2 vide for— 

3 ‘‘(1) the exchange of technical assistance and 

4 support that the Assistant Commandants for Acqui5 sition, Human Resources, Engineering, and Infor6 mation technology may identify; 

7 ‘‘(2) the use, as appropriate, of Navy technical 

8 expertise; and 

9 ‘‘(3) the exchange of personnel between the 

10 Coast Guard and the Office of the Assistant Sec11 retary of the Navy for Research, Development, and 

12 Acquisition, including Naval Systems Commands, to 

13 facilitate the development of organic capabilities in 

14 the Coast Guard. 

15 ‘‘(c) TECHNICAL REQUIREMENT APPROVAL PROCE16 DURES.—The Chief Acquisition Officer shall adopt, to the 

17 extent practicable, procedures modeled after those used by 

18 the Navy Senior Acquisition Official to approve all tech19 nical requirements. 

20 ‘‘§ 568. Undefinitized contractual actions 

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

22 into an undefinitized contractual action unless such action 

23 is directly approved by the Head of Contracting Activity 

24 of the Coast Guard. 


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1 ‘‘(b) REQUESTS FOR UNDEFINITIZED CONTRACTUAL

2 ACTIONS.—Any request to the Head of Contracting Activ3 ity for approval of an undefinitized contractual action 

4 shall include a description of the anticipated effect on re5 quirements of the Coast Guard if a delay is incurred for 

6 the purposes of determining contractual terms, specifica7 tions, and price before performance is begun under the 

8 contractual action. 

9 ‘‘(c) REQUIREMENTS FOR UNDEFINITIZED CONTRAC10 TUAL ACTIONS.— 

11 ‘‘(1) DEADLINE FOR AGREEMENT ON TERMS, 

12 SPECIFICATIONS, AND PRICE.—A contracting officer 

13 of the Coast Guard may not enter into an 

14 undefinitized contractual action unless the contrac15 tual action provides for agreement upon contractual 

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

17 ‘‘(A) the end of the 180-day period begin18 ning on the date on which the contractor sub19 mits a qualifying proposal to definitize the con20 tractual terms, specifications, and price; or 

21 ‘‘(B) the date on which the amount of 

22 funds obligated under the contractual action is 

23 equal to more than 50 percent of the negotiated 

24 overall ceiling price for the contractual action. 

25 ‘‘(2) LIMITATION ON OBLIGATIONS.— 


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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (B), the contracting officer for an 

3 undefinitized contractual action may not obli4 gate under such contractual action an amount 

5 that exceeds 50 percent of the negotiated over6 all ceiling price until the contractual terms, 

7 specifications, and price are definitized for such 

8 contractual action. 

9 ‘‘(B) EXCEPTION.—Notwithstanding sub10 paragraph (A), if a contractor submits a quali11 fying proposal to definitize an undefinitized 

12 contractual action before an amount that ex13 ceeds 50 percent of the negotiated overall ceil14 ing price is obligated on such action, the con15 tracting officer for such action may not obligate 

16 with respect to such contractual action an 

17 amount that exceeds 75 percent of the nego18 tiated overall ceiling price until the contractual 

19 terms, specifications, and price are definitized 

20 for such contractual action. 

21 ‘‘(3) WAIVER.—The Commandant may waive 

22 the application of this subsection with respect to a 

23 contract if the Commandant determines that the 

24 waiver is necessary to support— 


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1 ‘‘(A) a contingency operation (as that term 

2 is defined in section 101(a)(13) of title 10); 

3 ‘‘(B) operations to prevent or respond to a 

4 transportation security incident (as defined in 

5 section 70101(6) of title 46); 

6 ‘‘(C) an operation in response to an emer7 gency that poses an unacceptable threat to 

8 human health or safety or to the marine envi9 ronment; or 

10 ‘‘(D) an operation in response to a natural 

11 disaster or major disaster or emergency des12 ignated by the President under the Robert T. 

13 Stafford Disaster Relief and Emergency Assist14 ance Act (42 U.S.C. 5121 et seq.). 

15 ‘‘(4) LIMITATION ON APPLICATION.—This sub16 section does not apply to an undefinitized contrac17 tual action for the purchase of initial spares. 

18 ‘‘(d) INCLUSION OF NONURGENT REQUIREMENTS.— 

19 Requirements for spare parts and support equipment that 

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

21 in an undefinitized contractual action by the Coast Guard 

22 for spare parts and support equipment that are needed 

23 on an urgent basis unless the Commandant approves such 

24 inclusion as being— 

25 ‘‘(1) good business practice; and 


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

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

3 undefinitized contractual action under which performance 

4 has begun may not be modified unless the Commandant 

5 approves such modification as being— 

6 ‘‘(1) good business practice; and 

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

8 ‘‘(f) ALLOWABLE PROFIT.—The Commandant shall 

9 ensure that the profit allowed on an undefinitized contrac10 tual action for which the final price is negotiated after 

11 a substantial portion of the performance required is com12 pleted reflects— 

13 ‘‘(1) the possible reduced cost risk of the con14 tractor with respect to costs incurred during per15 formance of the contract before the final price is ne16 gotiated; and 

17 ‘‘(2) the reduced cost risk of the contractor 

18 with respect to costs incurred during performance of 

19 the remaining portion of the contract. 

20 ‘‘(g) DEFINITIONS.—In this section: 

21 ‘‘(1) UNDEFINITIZED CONTRACTUAL ACTION.— 

22 ‘‘(A) IN GENERAL.—Except as provided in 

23 subparagraph (B), the term ‘undefinitized con24 tractual action’ means a new procurement ac25 tion entered into by the Coast Guard for which 


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1 the contractual terms, specifications, or price 

2 are not agreed upon before performance is 

3 begun under the action. 

4 ‘‘(B) EXCLUSION.—The term 

5 ‘undefinitized contractual action’ does not in6 clude contractual actions with respect to— 

7 ‘‘(i) foreign military sales; 

8 ‘‘(ii) purchases in an amount not in 

9 excess of the amount of the simplified ac10 quisition threshold; or 

11 ‘‘(iii) special access programs. 

12 ‘‘(2) QUALIFYING PROPOSAL.—The term ‘quali13 fying proposal’ means a proposal that contains suffi14 cient information to enable complete and meaningful 

15 audits of the information contained in the proposal 

16 as determined by the contracting officer. 

17 ‘‘SUBCHAPTER 2—IMPROVED ACQUISITION PROCESS

18 AND PROCEDURES

19 ‘‘§ 571. Identification of major system acquisitions 

20 ‘‘(a) IN GENERAL.— 

21 ‘‘(1) SUPPORT MECHANISMS.—The Com22 mandant shall develop and implement mechanisms 

23 to support the establishment of mature and stable 

24 operational requirements for acquisitions under this 

25 subchapter. 


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1 ‘‘(2) MISSION ANALYSIS; AFFORDABILITY AS2 SESSMENT.—The Commandant may not initiate a 

3 Level 1 or Level 2 acquisition project or program 

4 until the Commandant— 

5 ‘‘(A) completes a mission analysis that— 

6 ‘‘(i) identifies any gaps in capability; 

7 and 

8 ‘‘(ii) develops a clear mission need; 

9 and 

10 ‘‘(B) prepares a preliminary affordability 

11 assessment for the project or program. 

12 ‘‘(b) ELEMENTS.— 

13 ‘‘(1) REQUIREMENTS.—The mechanisms re14 quired by subsection (a) shall ensure the implemen15 tation of a formal process for the development of a 

16 mission-needs statement, concept-of-operations docu17 ment, capability development plan, and resource pro18 posal for the initial project or program funding, and 

19 shall ensure the project or program is included in 

20 the Coast Guard Capital Investment Plan. 

21 ‘‘(2) ASSESSMENT OF TRADE-OFFS.—In con22 ducting an affordability assessment under subsection 

23 (a)(2)(B), the Commandant shall develop and imple24 ment mechanisms to ensure that trade-offs among 

25 cost, schedule, and performance are considered in 


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1 the establishment of preliminary operational require2 ments for development and production of new assets 

3 and capabilities for Level 1 and Level 2 acquisitions 

4 projects and programs. 

5 ‘‘(c) HUMAN RESOURCE CAPITAL PLANNING.—The 

6 Commandant shall develop staffing predictions, define 

7 human capital performance initiatives, and identify pre8 liminary training needs for any such project or program. 

9 ‘‘(d) DHS ACQUISITION APPROVAL.—A Level 1 or 

10 Level 2 acquisition project or program may not be imple11 mented unless it is approved by the Department of Home12 land Security Acquisition Review Board or the Joint Re13 view Board. 

14 ‘‘§ 572. Acquisition 

15 ‘‘(a) IN GENERAL.—The Commandant may not es16 tablish a Level 1 or Level 2 acquisition project or program 

17 approved under section 571(d) until the Commandant— 

18 ‘‘(1) clearly defines the operational require19 ments for the project or program; 

20 ‘‘(2) establishes the feasibility of alternatives; 

21 ‘‘(3) develops an acquisition project or program 

22 baseline; 

23 ‘‘(4) produces a life-cycle cost estimate; and 


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1 ‘‘(5) assesses the relative merits of alternatives 

2 to determine a preferred solution in accordance with 

3 the requirements of this section. 

4 ‘‘(b) ANALYSIS OF ALTERNATIVES.— 

5 ‘‘(1) IN GENERAL.—The Commandant shall 

6 conduct an analysis of alternatives for the asset or 

7 capability to be acquired in an analyze and select 

8 phase of the acquisition process. 

9 ‘‘(2) REQUIREMENTS.—The analysis of alter10 natives shall be conducted by a federally funded re11 search and development center, a qualified entity of 

12 the Department of Defense, or a similar independent 

13 third party entity that has appropriate acquisition 

14 expertise and has no substantial financial interest in 

15 any part of the acquisition project or program that 

16 is the subject of the analysis. At a minimum, the 

17 analysis of alternatives shall include— 

18 ‘‘(A) an assessment of the technical matu19 rity, and technical and other risks; 

20 ‘‘(B) an examination of capability, inter21 operability, and other disadvantages; 

22 ‘‘(C) an evaluation of whether different 

23 combinations or quantities of specific assets or 

24 capabilities could meet the Coast Guard’s over25 all performance needs; 


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1 ‘‘(D) a discussion of key assumptions and 

2 variables, and sensitivity to change in such as3 sumptions and variables; 

4 ‘‘(E) when an alternative is an existing 

5 asset or prototype, an evaluation of relevant 

6 safety and performance records and costs; 

7 ‘‘(F) a calculation of life-cycle costs includ8 ing— 

9 ‘‘(i) an examination of likely research 

10 and development costs and the levels of un11 certainty associated with such estimated 

12 costs; 

13 ‘‘(ii) an examination of likely produc14 tion and deployment costs and levels of un15 certainty associated with such estimated 

16 costs; 

17 ‘‘(iii) an examination of likely oper18 ating and support costs and the levels of 

19 uncertainty associated with such estimated 

20 costs; 

21 ‘‘(iv) if they are likely to be signifi22 cant, an examination of likely disposal 

23 costs and the levels of uncertainty associ24 ated with such estimated costs; and 


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1 ‘‘(v) such additional measures as the 

2 Commandant or the Secretary of Home3 land Security determines to be necessary 

4 for appropriate evaluation of the asset; and 

5 ‘‘(G) the business case for each viable al6 ternative. 

7 ‘‘(c) TEST AND EVALUATION MASTER PLAN.— 

8 ‘‘(1) IN GENERAL.—For any Level 1 or Level 

9 2 acquisition project or program the Chief Acquisi10 tion Officer shall approve a test and evaluation mas11 ter plan specific to the acquisition project or pro12 gram for the capability, asset, or subsystems of the 

13 capability or asset and intended to minimize tech14 nical, cost, and schedule risk as early as practicable 

15 in the development of the project or program. 

16 ‘‘(2) TEST AND EVALUATION STRATEGY.—The 

17 master plan shall— 

18 ‘‘(A) set forth an integrated test and eval19 uation strategy that will verify that capability20 level or asset-level and subsystem-level design 

21 and development, including performance and 

22 supportability, have been sufficiently proven be23 fore the capability, asset, or subsystem of the 

24 capability or asset is approved for production; 

25 and 


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1 ‘‘(B) require that adequate developmental 

2 tests and evaluations and operational tests and 

3 evaluations established under subparagraph (A) 

4 are performed to inform production decisions. 

5 ‘‘(3) OTHER COMPONENTS OF THE MASTER

6 PLAN.—At a minimum, the master plan shall iden7 tify— 

8 ‘‘(A) the key performance parameters to be 

9 resolved through the integrated test and evalua10 tion strategy; 

11 ‘‘(B) critical operational issues to be as12 sessed in addition to the key performance pa13 rameters; 

14 ‘‘(C) specific development test and evalua15 tion phases and the scope of each phase; 

16 ‘‘(D) modeling and simulation activities to 

17 be performed, if any, and the scope of such ac18 tivities; 

19 ‘‘(E) early operational assessments to be 

20 performed, if any, and the scope of such assess21 ments; 

22 ‘‘(F) operational test and evaluation 

23 phases; 

24 ‘‘(G) an estimate of the resources, includ25 ing funds, that will be required for all test, 


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1 evaluation, assessment, modeling, and simula2 tion activities; and 

3 ‘‘(H) the Government entity or inde4 pendent entity that will perform the test, eval5 uation, assessment, modeling, and simulation 

6 activities. 

7 ‘‘(4) UPDATE.—The Chief Acquisition Officer 

8 shall approve an updated master plan whenever 

9 there is a revision to project or program test and 

10 evaluation strategy, scope, or phasing. 

11 ‘‘(5) LIMITATION.—The Coast Guard may 

12 not— 

13 ‘‘(A) proceed beyond that phase of the ac14 quisition process that entails approving the sup15 porting acquisition of a capability or asset be16 fore the master plan is approved by the Chief 

17 Acquisition Officer; or 

18 ‘‘(B) award any production contract for a 

19 capability, asset, or subsystem for which a mas20 ter plan is required under this subsection before 

21 the master plan is approved by the Chief Acqui22 sition Officer. 

23 ‘‘(d) LIFE-CYCLE COST ESTIMATES.— 

24 ‘‘(1) IN GENERAL.—The Commandant shall im25 plement mechanisms to ensure the development and 


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1 regular updating of life-cycle cost estimates for each 

2 Level 1 or Level 2 acquisition to ensure that these 

3 estimates are considered in decisions to develop or 

4 produce new or enhanced capabilities and assets. 

5 ‘‘(2) TYPES OF ESTIMATES.—In addition to 

6 life-cycle cost estimates that may be developed by ac7 quisition program offices, the Commandant shall re8 quire that an independent life-cycle cost estimate be 

9 developed for each Level 1 or Level 2 acquisition 

10 project or program. 

11 ‘‘(3) REQUIRED UPDATES.—For each Level 1 

12 or Level 2 acquisition project or program the Com13 mandant shall require that life-cycle cost estimates 

14 shall be updated before each milestone decision is 

15 concluded and the project or program enters a new 

16 acquisition phase. 

17 ‘‘(e) DHS ACQUISITION APPROVAL.—A project or 

18 program may not enter the obtain phase under section 573 

19 unless the Department of Homeland Security Acquisition 

20 Review Board or the Joint Review Board (or other entity 

21 to which such responsibility is delegated by the Secretary 

22 of Homeland Security) has approved the analysis of alter23 natives for the project. The Joint Review Board may also 

24 approve the low rates initial production quantity for the 

25 project or program if such an initial production quantity 


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1 is planned by the acquisition project or program and 

2 deemed appropriate by the Joint Review Board. 

3 ‘‘§ 573. Preliminary development and demonstration 

4 ‘‘(a) IN GENERAL.—The Commandant shall ensure 

5 that developmental test and evaluation, operational test 

6 and evaluation, life cycle cost estimates, and the develop7 ment and demonstration requirements are met to confirm 

8 that the projects or programs meet the requirements de9 scribed in the mission-needs statement and the oper10 ational-requirements document and the following develop11 ment and demonstration objectives: 

12 ‘‘(1) To demonstrate that the most promising 

13 design, manufacturing, and production solution is 

14 based upon a stable, producible, and cost-effective 

15 product design. 

16 ‘‘(2) To ensure that the product capabilities 

17 meet contract specifications, acceptable operational 

18 performance requirements, and system security re19 quirements. 

20 ‘‘(3) To ensure that the product design is ma21 ture enough to commit to full production and de22 ployment. 

23 ‘‘(b) TESTS AND EVALUATIONS.— 

24 ‘‘(1) IN GENERAL.—The Commandant shall en25 sure that the Coast Guard conducts developmental 


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1 tests and evaluations and operational tests and eval2 uations of a capability or asset and the subsystems 

3 of the capability or asset for which a master plan 

4 has been prepared under section 572(c)(1). 

5 ‘‘(2) USE OF THIRD PARTIES.—The Com6 mandant shall ensure that the Coast Guard uses 

7 independent third parties with expertise in testing 

8 and evaluating the capabilities or assets and the 

9 subsystems of the capabilities or assets being ac10 quired to conduct developmental tests and evalua11 tions and operational tests and evaluations whenever 

12 the Coast Guard lacks the capability to conduct the 

13 tests and evaluations required by a master plan. 

14 ‘‘(3) COMMUNICATION OF SAFETY CONCERNS.— 

15 The Commandant shall require that safety concerns 

16 identified during developmental or operational tests 

17 and evaluations or through independent or Govern18 ment-conducted design assessments of capabilities or 

19 assets and subsystems of capabilities or assets to be 

20 acquired by the Coast Guard shall be communicated 

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

22 after the completion of the test or assessment event 

23 or activity that identified the safety concern, to the 

24 program manager for the capability or asset and the 


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1 subsystems concerned and to the Chief Acquisition 

2 Officer. 

3 ‘‘(4) ASSET ALREADY IN LOW, INITIAL, OR

4 FULL-RATE PRODUCTION.—If operational test and 

5 evaluation on a capability or asset already in low, 

6 initial, or full-rate production identifies a safety con7 cern with the capability or asset or any subsystems 

8 of the capability or asset not previously identified 

9 during developmental or operational test and evalua10 tion, the Commandant shall— 

11 ‘‘(A) notify the program manager and the 

12 Chief Acquisition Officer of the safety concern 

13 as soon as practicable, but not later than 30 

14 days after the completion of the test and eval15 uation event or activity that identified the safe16 ty concern; and 

17 ‘‘(B) notify the Chief Acquisition Officer 

18 and include in such notification— 

19 ‘‘(i) an explanation of the actions that 

20 will be taken to correct or mitigate the 

21 safety concern in all capabilities or assets 

22 and subsystems of the capabilities or as23 sets yet to be produced, and the date by 

24 which those actions will be taken; 


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1 ‘‘(ii) an explanation of the actions 

2 that will be taken to correct or mitigate 

3 the safety concern in previously produced 

4 capabilities or assets and subsystems of 

5 the capabilities or assets, and the date by 

6 which those actions will be taken; and 

7 ‘‘(iii) an assessment of the adequacy 

8 of current funding to correct or mitigate 

9 the safety concern in capabilities or assets 

10 and subsystems of the capabilities or as11 sets and in previously produced capabilities 

12 or assets and subsystems. 

13 ‘‘(c) TECHNICAL CERTIFICATION.— 

14 ‘‘(1) IN GENERAL.—The Commandant shall— 

15 ensure that any Level 1 or Level 2 acquisition 

16 project or program is certified by the technical au17 thority of the Coast Guard after review by an inde18 pendent third party with capabilities in the mission 

19 area, asset, or particular asset component. 

20 ‘‘(2) TEMPEST TESTING.—The Commandant 

21 shall— 

22 ‘‘(A) cause all electronics on all aircraft, 

23 surface, and shore assets that require TEM24 PEST certification and that are delivered after 

25 the date of enactment of the Coast Guard AuVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6401 E:\BILLS\S1194.RS S1194

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1 thorization Act for Fiscal Years 2010 and 2011 

2 to be tested in accordance with master plan 

3 standards and communications security stand4 ards by an independent third party that is au5 thorized by the Federal Government to perform 

6 such testing; and 

7 ‘‘(B) certify that the assets meet all appli8 cable TEMPEST requirements. 

9 ‘‘(3) VESSEL CLASSIFICATION.—The Com10 mandant shall cause each cutter, other than the Na11 tional Security Cutter, acquired by the Coast Guard 

12 and delivered after the date of enactment of the 

13 Coast Guard Authorization Act for Fiscal Years 

14 2010 and 2011 is to be classed by the American Bu15 reau of Shipping before final acceptance. 

16 ‘‘(d) ACQUISITION DECISION.—The Commandant 

17 may not proceed to full scale production, deployment, and 

18 support of a Level 1 or Level 2 acquisition project or pro19 gram unless the Department of Homeland Security Acqui20 sition Review Board has verified that the delivered asset 

21 or system meets the project or program performance and 

22 cost goals. 

23 ‘‘§ 574. Acquisition, production, deployment, and sup24 port 

25 ‘‘(a) IN GENERAL.—The Commandant shall— 


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1 ‘‘(1) ensure there is a stable and efficient pro2 duction and support capability to develop an asset or 

3 system; 

4 ‘‘(2) conduct follow on testing to confirm and 

5 monitor performance and correct deficiencies; and 

6 ‘‘(3) conduct acceptance tests and trails upon 

7 the delivery of each asset or system to ensure the 

8 delivered asset or system achieves full operational 

9 capability. 

10 ‘‘(b) ELEMENTS.—The Commandant shall— 

11 ‘‘(1) execute the productions contracts; 

12 ‘‘(2) ensure the delivered products meet oper13 ational cost and schedules requirements established 

14 in the acquisition program baseline; 

15 ‘‘(3) validate manpower and training require16 ments to meet system needs to operate, maintain, 

17 support, and instruct the system; and 

18 ‘‘(4) prepare a project or program transition 

19 plan to enter into programmatic sustainment, oper20 ations, and support. 

21 ‘‘§ 575. Acquisition program baseline breach 

22 ‘‘(a) IN GENERAL.—The Commandant shall submit 

23 a report to the appropriate congressional committees as 

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

25 Chief Acquisition Officer of the Coast Guard becomes 


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1 aware of the breach of an acquisition program baseline 

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

3 ‘‘(1) a likely cost overrun greater than 15 per4 cent of the acquisition program baseline for that in5 dividual capability or asset or a class of capabilities 

6 or assets; 

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

8 delivery schedule for any individual capability or 

9 asset or class of capabilities or assets; or 

10 ‘‘(3) an anticipated failure for any individual 

11 capability or asset or class of capabilities or assets 

12 to satisfy any key performance threshold or param13 eter under the acquisition program baseline. 

14 ‘‘(b) CONTENT.—The report submitted under sub15 section (a) shall include— 

16 ‘‘(1) a detailed description of the breach and an 

17 explanation of its cause; 

18 ‘‘(2) the projected impact to performance, cost, 

19 and schedule; 

20 ‘‘(3) an updated acquisition program baseline 

21 and the complete history of changes to the original 

22 acquisition program baseline; 

23 ‘‘(4) the updated acquisition schedule and the 

24 complete history of changes to the original schedule; 


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

3 ‘‘(6) a remediation plan identifying corrective 

4 actions and any resulting issues or risks; and 

5 ‘‘(7) a description of how progress in the reme6 diation plan will be measured and monitored. 

7 ‘‘(c) SUBSTANTIAL VARIANCES IN COSTS OR SCHED8 ULE.—If a likely cost overrun is greater than 25 percent 

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

10 and schedule described in the acquisition program baseline 

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

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

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

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

16 asset class to be acquired under the project or pro17 gram is essential to the accomplishment of Coast 

18 Guard missions; 

19 ‘‘(2) there are no alternatives to such capability 

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

23 ‘‘(3) the new acquisition schedule and estimates 

24 for total acquisition cost are reasonable; and 


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

4 ‘‘SUBCHAPTER 3—DEFINITIONS

5 ‘‘§ 581. Definitions 

6 ‘‘In this chapter: 

7 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT8 TEES.—The term ‘appropriate congressional com9 mittees’ means the House of Representatives Com10 mittee on Transportation and Infrastructure and the 

11 Senate Committee on Commerce, Science, and 

12 Transportation. 

13 ‘‘(2) CHIEF ACQUISITION OFFICER.—The term 

14 ‘Chief Acquisition Officer’ means the officer ap15 pointed under section 55 of this title. 

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

17 means the Commandant of the Coast Guard. 

18 ‘‘(4) JOINT REVIEW BOARD.—The term ‘Joint 

19 Review Board’ means the Department of Homeland 

20 Security’s Investment Review Board, Joint Require21 ments Council, or other entity within the Depart22 ment designated by the Secretary as the Joint Re23 view Board for purposes of this chapter. 

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

25 acquisition’ means— 


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1 ‘‘(A) an acquisition by the Coast Guard— 

2 ‘‘(i) the estimated life-cycle costs of 

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

4 ‘‘(ii) the estimated total acquisition 

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

6 ‘‘(B) any acquisition that the Chief Acqui7 sition Officer of the Coast Guard determines to 

8 have a special interest— 

9 ‘‘(i) due to— 

10 ‘‘(I) the experimental or tech11 nically immature nature of the asset; 

12 ‘‘(II) the technological complexity 

13 of the asset; 

14 ‘‘(III) the commitment of re15 sources; or 

16 ‘‘(IV) the nature of the capability 

17 or set of capabilities to be achieved; or 

18 ‘‘(ii) because such acquisition is a 

19 joint acquisition. 

20 ‘‘(6) LEVEL 2 ACQUISITION.—The term ‘Level 2 

21 acquisition’ means an acquisition by the Coast 

22 Guard— 

23 ‘‘(A) the estimated life-cycle costs of which 

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

25 greater than $300,000,000; or 


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1 ‘‘(B) the estimated total acquisition costs 

2 of which are equal to or less than 

3 $300,000,0000, but greater than $100,000,000. 

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

5 cost’ means all costs for development, procurement, 

6 construction, and operations and support for a par7 ticular capability or asset, without regard to funding 

8 source or management control. 

9 ‘‘(8) SAFETY CONCERN.—The term ‘safety con10 cern’ means any hazard associated with a capability 

11 or asset or a subsystem of a capability or asset that 

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

13 typical Coast Guard user in testing, maintaining, re14 pairing, or operating the capability, asset, or sub15 system or any hazard associated with the capability, 

16 asset, or subsystem that is likely to cause major 

17 damage to the capability, asset, or subsystem during 

18 the course of its normal operation by a typical Coast 

19 Guard user.’’. 

20 (b) CONFORMING AMENDMENT.—The part analysis 

21 for part I of title 14, United States Code, is amended by 

22 inserting after the item relating to chapter 13 the fol23 lowing: 

‘‘15. Acquisitions ...............................................................................................561’’. 


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1 SEC. 503. REPORT AND GUIDANCE ON EXCESS PASS2 THROUGH CHARGES. 

3 (a) COMPTROLLER GENERAL REPORT.— 

4 (1) IN GENERAL.—Not later than 180 days 

5 after the date of enactment of this Act, the Comp6 troller General shall issue a report on pass-through 

7 charges on contracts, subcontracts, delivery orders, 

8 and task orders that were executed by a lead sys9 tems integrator under contract to the Coast Guard 

10 during the 3 full calendar years preceding the date 

11 of enactment of this Act. 

12 (2) MATTERS COVERED.—The report under this 

13 subsection— 

14 (A) shall assess the extent to which the 

15 Coast Guard paid excessive pass-through 

16 charges to contractors or subcontractors that 

17 provided little or no value to the performance of 

18 a contract or the production of a procured 

19 asset; and 

20 (B) shall assess the extent to which the 

21 Coast Guard has been particularly vulnerable to 

22 excessive pass-through charges on any specific 

23 category of contracts or by any specific category 

24 of contractors. 

25 (b) GUIDANCE REQUIRED.— 


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1 (1) IN GENERAL.—Not later than 180 days 

2 after the date of enactment of this Act, the Com3 mandant shall prescribe guidance to ensure that 

4 pass-through charges on contracts, subcontracts, de5 livery orders, and task orders that are executed with 

6 a private entity acting as a lead systems integrator 

7 by or on behalf of the Coast Guard are not excessive 

8 in relation to the cost of work performed by the rel9 evant contractor or subcontractor. The guidance 

10 shall, at a minimum— 

11 (A) set forth clear standards for deter12 mining when no, or negligible, value has been 

13 added to a contract by a contractor or subcon14 tractor; 

15 (B) set forth procedures for preventing the 

16 payment by the Government of excessive pass17 through charges; and 

18 (C) identify any exceptions determined by 

19 the Commandant to be in the best interest of 

20 the Government. 

21 (2) SCOPE OF GUIDANCE.—The guidance pre22 scribed under this subsection— 

23 (A) shall not apply to any firm, fixed-price 

24 contract or subcontract, delivery order, or task 

25 order that is— 


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1 (i) awarded on the basis of adequate 

2 price competition, as determined by the 

3 Commandant; or 

4 (ii) for the acquisition of a commercial 

5 item, as defined in section 4(12) of the Of6 fice of Federal Procurement Policy Act (41 

7 U.S.C. 403(12)); and 

8 (B) may include such additional exceptions 

9 as the Commandant determines to be necessary 

10 in the interest of the United States. 

11 (c) EXCESSIVE PASS-THROUGH CHARGE DE12 FINED.—In this section the term ‘‘excessive pass-through 

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

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

15 means a charge to the Government by the contractor or 

16 subcontractor that is for overhead or profit on work per17 formed by a lower-tier contractor or subcontractor, other 

18 than reasonable charges for the direct costs of managing 

19 lower-tier contractors and subcontracts and overhead and 

20 profit based on such direct costs. 

21 (d) APPLICATION OF GUIDANCE.—The guidance pre22 scribed under this section shall apply to contracts awarded 

23 to a private entity acting as a lead systems integrator by 

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

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


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1 TITLE VI—SHIPPING AND 

2 NAVIGATION 

3 SEC. 601. TECHNICAL AMENDMENTS TO CHAPTER 313 OF 

4 TITLE 46, UNITED STATES CODE. 

5 (a) IN GENERAL.—Chapter 313 of title 46, United 

6 States Code, is amended— 

7 (1) by striking ‘‘of Transportation’’ in sections 

8 31302, 31306, 31321, 31330, and 31343 each place 

9 it appears; 

10 (2) by striking ‘‘and’’ after the semicolon in 

11 section 31301(5)(F); 

12 (3) by striking ‘‘office.’’ in section 31301(6) 

13 and inserting ‘‘office; and’’; and 

14 (4) by adding at the end of section 31301 the 

15 following: 

16 ‘‘(7) ‘Secretary’ means the Secretary of the De17 partment of Homeland Security, unless otherwise 

18 noted.’’. 

19 (b) SECRETARY AS MORTGAGEE.—Section 31308 of 

20 such title is amended by striking ‘‘When the Secretary of 

21 Commerce or Transportation is a mortgagee under this 

22 chapter, the Secretary’’ and inserting ‘‘The Secretary of 

23 Commerce or Transportation, as a mortgagee under this 

24 chapter,’’. 


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1 (c) SECRETARY OF TRANSPORTATION.—Section 

2 31329(d) of such title is amended by striking ‘‘Secretary.’’ 

3 and inserting ‘‘Secretary of Transportation.’’. 

4 (d) MORTGAGEE.— 

5 (1) Section 31330(a)(1) of such title, as amend6 ed by subsection (a)(1) of this section, is amended— 

7 (A) by inserting ‘‘or’’ after the semicolon 

8 in subparagraph (B); 

9 (B) by striking ‘‘Secretary; or’’ in subpara10 graph (C) and inserting ‘‘Secretary.’’; and 

11 (C) by striking subparagraph (D). 

12 (2) Section 31330(a)(2) is amended— 

13 (A) by inserting ‘‘or’’ after the semicolon 

14 in subparagraph (B); 

15 (B) by striking ‘‘faith; or’’ in subpara16 graph (C) and inserting ‘‘faith.’’; and 

17 (C) by striking subparagraph (D). 

18 SEC. 602. CLARIFICATION OF RULEMAKING AUTHORITY. 

19 (a) IN GENERAL.—Chapter 701 of title 46, United 

20 States Code, is amended by adding at the end the fol21 lowing: 

22 ‘‘§ 70122. Regulations 

23 ‘‘Unless otherwise provided, the Secretary may issue 

24 regulations necessary to implement this chapter.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents 

2 for chapter 701 of such title is amended by adding at the 

3 end the following new item: 

‘‘70122. Regulations.’’. 

4 SEC. 603. COAST GUARD TO MAINTAIN LORAN–C NAVIGA5 TION SYSTEM. 

6 (a) IN GENERAL.—The Secretary of Transportation 

7 shall maintain the LORAN–C navigation system until 

8 such time as the Secretary is authorized by statute, explic9 itly referencing this section, to cease operating the system 

10 but expedite modernization projects necessary for transi11 tion to eLORAN technology. 

12 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated to the Secretary of 

14 Transportation, in addition to funds authorized under sec15 tion 101 of this Act for the Coast Guard for operation 

16 of the LORAN–C system and for the transition to 

17 eLORAN, for capital expenses related to the LORAN–C 

18 infrastructure and to modernize and upgrade the LORAN 

19 infrastructure to provide eLORAN services, $37,000,000 

20 for each of fiscal years 2010 and 2011. The Secretary of 

21 Transportation may transfer from the Federal Aviation 

22 Administration and other agencies of the Department of 

23 Transportation such funds as may be necessary to reim24 burse the Coast Guard for related expenses. 


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1 (c) REPORT ON TRANSITION TO ELORAN TECH2 NOLOGY.—No later than 6 months after the date of enact3 ment of this Act, the Secretary of Transportation, in co4 operation with the Secretary of the Department in which 

5 the Coast Guard is operating, shall provide a report to 

6 the Senate Committee on Commerce, Science, and Trans7 portation and the House of Representatives Committee on 

8 Transportation and Infrastructure a detailed 5-year plan 

9 for transition to eLORAN technology that includes— 

10 (1) the timetable, milestones, projects, and fu11 ture funding required to complete the transition 

12 from LORAN–C to eLORAN technology for provi13 sion of positioning, navigation, and timing services; 

14 and 

15 (2) the benefits of eLORAN for national trans16 portation safety, security, and economic growth. 

17 SEC. 604. ICEBREAKERS. 

18 (a) ANALYSES.—Not later than 90 days after the 

19 date of enactment of this Act or the date of completion 

20 of the ongoing High Latitude Study to assess polar ice21 breaking mission requirements, which ever occurs later, 

22 the Commandant of the Coast Guard shall— 

23 (1) conduct a comparative cost-benefit analysis 

24 of— 


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1 (A) rebuilding, renovating, or improving 

2 the existing fleet of polar icebreakers for oper3 ation by the Coast Guard, 

4 (B) constructing new polar icebreakers for 

5 operation by the Coast Guard for operation by 

6 the Coast Guard, and 

7 (C) any combination of the activities de8 scribed in subparagraphs (A) and (B), to carry 

9 out the missions of the Coast Guard; and 

10 (2) conduct an analysis of the impact on mis11 sion capacity and the ability of the United States to 

12 maintain a presence in the polar regions through the 

13 year 2020 if recapitalization of the polar icebreaker 

14 fleet, either by constructing new polar icebreakers or 

15 rebuilding, renovating, or improving the existing 

16 fleet of polar icebreakers, is not fully funded. 

17 (b) REPORTS TO CONGRESS.— 

18 (1) Not later than 90 days after the date of en19 actment of this Act or the date of completion of the 

20 ongoing High Latitude Study to assess polar ice21 breaking mission requirements, which ever occurs 

22 later, the Commandant of the Coast Guard shall 

23 submit a report containing the results of the study, 

24 together with recommendations the Commandant 

25 deems appropriate under section 93(a)(24) of title 


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1 14, United States Code, to the Senate Committee on 

2 Commerce, Science, and Transportation and the 

3 House of Representatives Committee on Transpor4 tation and Infrastructure. 

5 (2) Not later than 1 year after the date of en6 actment of this Act, the Commandant shall submit 

7 reports containing the results of the analyses re8 quired under paragraphs (1) and (2) of subsection 

9 (a), together with recommendations the Com10 mandant deems appropriate under section 93(a)(24) 

11 of title 14, United States Code, to the Senate Com12 mittee on Commerce, Science, and Transportation 

13 and the House of Representatives Committee on 

14 Transportation and Infrastructure. 

15 SEC. 605. VESSEL SIZE LIMITS. 

16 (a) LENGTH, TONNAGE, AND HORSEPOWER.—Sec17 tion 12113(d)(2) of title 46, United States Code, is 

18 amended— 

19 (1) by inserting ‘‘and’’ after the semicolon at 

20 the end of subparagraph (A)(i); 

21 (2) by striking ‘‘and’’ at the end of subpara22 graph (A)(ii); 

23 (3) by striking subparagraph (A)(iii); 

24 (4) by striking the period at the end of sub25 paragraph (B) and inserting ‘‘; or’’; and 


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1 (5) by inserting at the end the following: 

2 ‘‘(C) the vessel is either a rebuilt vessel or 

3 a replacement vessel under section 208(g) of 

4 the American Fisheries Act (title II of division 

5 C of Public Law 105–277; 112 Stat. 2681– 

6 627) and is eligible for a fishery endorsement 

7 under this section.’’. 

8 (b) CONFORMING AMENDMENTS.— 

9 (1) VESSEL REBUILDING AND REPLACE10 MENT.—Section 208(g) of the American Fisheries 

11 Act (title II of division C of Public Law 105–277; 

12 112 Stat. 2681–627) is amended to read as follows: 

13 ‘‘(g) VESSEL REBUILDING AND REPLACEMENT.— 

14 ‘‘(1) IN GENERAL.— 

15 ‘‘(A) REBUILD OR REPLACE.—Notwith16 standing any limitation to the contrary on re17 placing, rebuilding, or lengthening vessels or 

18 transferring permits or licenses to a replace19 ment vessel contained in sections 679.2 and 

20 679.4 of title 50, Code of Federal Regulations, 

21 as in effect on the date of enactment of the 

22 Coast Guard Authorization Act for Fiscal Years 

23 2010 and 2011 and except as provided in para24 graph (4), the owner of a vessel eligible under 

25 subsection (a), (b), (c), (d), or (e) (other than 


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1 paragraph (21)), in order to improve vessel 

2 safety and operational efficiencies (including 

3 fuel efficiency), may rebuild or replace that ves4 sel (including fuel efficiency) with a vessel docu5 mented with a fishery endorsement under sec6 tion 12113 of title 46, United States Code. 

7 ‘‘(B) SAME REQUIREMENTS.—The rebuilt 

8 or replacement vessel shall be eligible in the 

9 same manner and subject to the same restric10 tions and limitations under such subsection as 

11 the vessel being rebuilt or replaced. 

12 ‘‘(C) TRANSFER OF PERMITS AND LI13 CENSES.—Each fishing permit and license held 

14 by the owner of a vessel or vessels to be rebuilt 

15 or replaced under subparagraph (A) shall be 

16 transferred to the rebuilt or replacement vessel. 

17 ‘‘(2) RECOMMENDATIONS OF NORTH PACIFIC

18 COUNCIL.—The North Pacific Council may rec19 ommend for approval by the Secretary such con20 servation and management measures, including size 

21 limits and measures to control fishing capacity, in 

22 accordance with the Magnuson-Stevens Act as it 

23 considers necessary to ensure that this subsection 

24 does not diminish the effectiveness of fishery manVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6401 E:\BILLS\S1194.RS S1194

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1 agement plans of the Bering Sea and Aleutian Is2 lands Management Area or the Gulf of Alaska. 

3 ‘‘(3) SPECIAL RULE FOR REPLACEMENT OF

4 CERTAIN VESSELS.— 

5 ‘‘(A) IN GENERAL.—Notwithstanding the 

6 requirements of subsections (b)(2), (c)(1), and 

7 (c)(2) of section 12113 of title 46, United 

8 States Code, a vessel that is eligible under sub9 section (a), (b), (c), (d), or (e) (other than 

10 paragraph (21)) and that qualifies to be docu11 mented with a fishery endorsement pursuant to 

12 section 203(g) or 213(g) may be replaced with 

13 a replacement vessel under paragraph (1) if the 

14 vessel that is replaced is validly documented 

15 with a fishery endorsement pursuant to section 

16 203(g) or 213(g) before the replacement vessel 

17 is documented with a fishery endorsement 

18 under section 12113 of title 46, United States 

19 Code. 

20 ‘‘(B) APPLICABILITY.—A replacement ves21 sel under subparagraph (A) and its owner and 

22 mortgagee are subject to the same limitations 

23 under section 203(g) or 213(g) that are appli24 cable to the vessel that has been replaced and 

25 its owner and mortgagee. 


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1 ‘‘(4) SPECIAL RULES FOR CERTAIN CATCHER

2 VESSELS.— 

3 ‘‘(A) IN GENERAL.—A replacement for a 

4 covered vessel described in subparagraph (B) is 

5 prohibited from harvesting fish in any fishery 

6 (except for the Pacific whiting fishery) managed 

7 under the authority of any regional fishery 

8 management council (other than the North Pa9 cific Council) established under section 302(a) 

10 of the Magnuson-Stevens Act. 

11 ‘‘(B) COVERED VESSELS.—A covered ves12 sel referred to in subparagraph (A) is— 

13 ‘‘(i) a vessel eligible under subsection 

14 (a), (b), or (c) that is replaced under para15 graph (1); or 

16 ‘‘(ii) a vessel eligible under subsection 

17 (a), (b), or (c) that is rebuilt to increase 

18 its registered length, gross tonnage, or 

19 shaft horsepower. 

20 ‘‘(5) LIMITATION ON FISHERY ENDORSE21 MENTS.—Any vessel that is replaced under this sub22 section shall thereafter not be eligible for a fishery 

23 endorsement under section 12113 of title 46, United 

24 States Code, unless that vessel is also a replacement 

25 vessel described in paragraph (1). 


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1 ‘‘(6) GULF OF ALASKA LIMITATION.—Notwith2 standing paragraph (1), the Secretary shall prohibit 

3 from participation in the groundfish fisheries of the 

4 Gulf of Alaska any vessel that is rebuilt or replaced 

5 under this subsection and that exceeds the maximum 

6 length overall specified on the license that authorizes 

7 fishing for groundfish pursuant to the license limita8 tion program under part 679 of title 50, Code of 

9 Federal Regulations, as in effect on the date of en10 actment of the Coast Guard Authorization Act for 

11 Fiscal Years 2010 and 2011. 

12 ‘‘(7) AUTHORITY OF PACIFIC COUNCIL.—Noth13 ing in this section shall be construed to diminish or 

14 otherwise affect the authority of the Pacific Council 

15 to recommend to the Secretary conservation and 

16 management measures to protect fisheries under its 

17 jurisdiction (including the Pacific whiting fishery) 

18 and participants in such fisheries from adverse im19 pacts caused by this Act.’’. 

20 (2) EXEMPTION OF CERTAIN VESSELS.—Sec21 tion 203(g) of the American Fisheries Act (title II 

22 of division C of Public Law 105–277; 112 Stat. 

23 2681–620) is amended— 

24 (A) by inserting ‘‘and’’ after ‘‘(United 

25 States official number 651041)’’; 


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1 (B) by striking ‘‘, NORTHERN TRAV2 ELER (United States official number 635986), 

3 and NORTHERN VOYAGER (United States 

4 official number 637398) (or a replacement ves5 sel for the NORTHERN VOYAGER that com6 plies with paragraphs (2), (5), and (6) of sec7 tion 208(g) of this Act)’’; and 

8 (C) by striking ‘‘, in the case of the 

9 NORTHERN’’ and all that follows through 

10 ‘‘PHOENIX,’’. 

11 (3) FISHERY COOPERATIVE EXIT PROVI12 SIONS.—Section 210(b) of the American Fisheries 

13 Act (title II of division C of Public Law 105–277; 

14 112 Stat. 2681–629) is amended— 

15 (A) by moving the matter beginning with 

16 ‘‘the Secretary shall’’ in paragraph (1) 2 ems to 

17 the right; and 

18 (B) by adding at the end the following: 

19 ‘‘(7) FISHERY COOPERATIVE EXIT PROVI20 SIONS.— 

21 ‘‘(A) FISHING ALLOWANCE DETERMINA22 TION.—For purposes of determining the aggre23 gate percentage of directed fishing allowances 

24 under paragraph (1), when a catcher vessel is 

25 removed from the directed pollock fishery, the 


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1 fishery allowance for pollock for the vessel being 

2 removed— 

3 ‘‘(i) shall be based on the catch his4 tory determination for the vessel made 

5 pursuant to section 679.62 of title 50, 

6 Code of Federal Regulations, as in effect 

7 on the date of enactment of the Coast 

8 Guard Authorization Act of 2008; and 

9 ‘‘(ii) shall be assigned, for all pur10 poses under this title, in the manner speci11 fied by the owner of the vessel being re12 moved to any other catcher vessel or 

13 among other catcher vessels participating 

14 in the fishery cooperative if such vessel or 

15 vessels remain in the fishery cooperative 

16 for at least one year after the date on 

17 which the vessel being removed leaves the 

18 directed pollock fishery. 

19 ‘‘(B) ELIGIBILITY FOR FISHERY ENDORSE20 MENT.—Except as provided in subparagraph 

21 (C), a vessel that is removed pursuant to this 

22 paragraph shall be permanently ineligible for a 

23 fishery endorsement, and any claim (including 

24 relating to catch history) associated with such 

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1 sel for any permit to participate in any fishery 

2 within the exclusive economic zone of the 

3 United States shall be extinguished, unless such 

4 removed vessel is thereafter designated to re5 place a vessel to be removed pursuant to this 

6 paragraph. 

7 ‘‘(C) LIMITATIONS ON STATUTORY CON8 STRUCTION.—Nothing in this paragraph shall 

9 be construed— 

10 ‘‘(i) to make the vessels AJ (United 

11 States official number 905625), DONA 

12 MARTITA (United States official number 

13 651751), NORDIC EXPLORER (United 

14 States official number 678234), and 

15 PROVIDIAN (United States official num16 ber 1062183) ineligible for a fishery en17 dorsement or any permit necessary to par18 ticipate in any fishery under the authority 

19 of the New England Fishery Management 

20 Council or the Mid-Atlantic Fishery Man21 agement Council established, respectively, 

22 under subparagraphs (A) and (B) of sec23 tion 302(a)(1) of the Magnuson-Stevens 

24 Act; or 


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1 ‘‘(ii) to allow the vessels referred to in 

2 clause (i) to participate in any fishery 

3 under the authority of the Councils re4 ferred to in clause (i) in any manner that 

5 is not consistent with the fishery manage6 ment plan for the fishery developed by the 

7 Councils under section 303 of the Magnu8 son-Stevens Act.’’. 

9 TITLE VII—VESSEL 

10 CONVEYANCE 

11 SEC. 701. SHORT TITLE. 

12 This title may be cited as the ‘‘Vessel Conveyance 

13 Act’’. 

14 SEC. 702. CONVEYANCE OF COAST GUARD VESSELS FOR 

15 PUBLIC PURPOSES. 

16 (a) IN GENERAL.—Whenever the transfer of owner17 ship of a Coast Guard vessel to an eligible entity for use 

18 for educational, cultural, historical, charitable, rec19 reational, or other public purposes is authorized by law, 

20 the Coast Guard shall transfer the vessel to the General 

21 Services Administration for conveyance to the eligible enti22 ty. 

23 (b) CONDITIONS OF CONVEYANCE.—The General 

24 Services Administration may not convey a vessel to an eliVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6401 E:\BILLS\S1194.RS S1194

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1 gible entity as authorized by law unless the eligible entity 

2 agrees— 

3 (1) to provide the documentation needed by the 

4 General Services Administration to process a request 

5 for aircraft or vessels under section 102.37.225 of 

6 title 41, Code of Federal Regulations; 

7 (2) to comply with the special terms, conditions, 

8 and restrictions imposed on aircraft and vessels 

9 under section 102–37.460 of such title; 

10 (3) to make the vessel available to the United 

11 States Government if it is needed for use by the 

12 Commandant of the Coast Guard in time of war or 

13 a national emergency; and 

14 (4) to hold the United States Government 

15 harmless for any claims arising from exposure to 

16 hazardous materials, including asbestos and poly17 chlorinated biphenyls, after conveyance of the vessel, 

18 except for claims arising from use of the vessel by 

19 the United States Government under paragraph (3). 

20 (c) ELIGIBLE ENTITY DEFINED.—In this section, the 

21 term ‘‘eligible entity’’ means a State or local government, 

22 nonprofit corporation, educational agency, community de23 velopment organization, or other entity that agrees to 

24 comply with the conditions established under this section. 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Coast Guard Authoriza3 tion Act for Fiscal Years 2010 and 2011’’. 

4 SEC. 2. TABLE OF CONTENTS. 

5 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. 

Sec. 408. Crew wages on passenger vessels. 

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 


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‘‘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. 

Sec. 606. Phaseout of vessels supporting oil and gas development. 

TITLE VII—VESSEL CONVEYANCE 

Sec. 701. Short title. 

Sec. 702. Conveyance of Coast Guard vessels for public purposes. 

TITLE VIII—OIL POLLUTION PREVENTION 

Sec. 801. Rulemakings. 

Sec. 802. Oil spill response capability. 

Sec. 803. Oil transfers from vessels. 

Sec. 804. Improvements to reduce human error and near miss incidents. 

Sec. 805. Olympic coast national marine sanctuary. 

Sec. 806. Prevention of small oil spills. 

Sec. 807. Improved coordination with tribal governments. 

Sec. 808. Report on availability of technology to detect the loss of oil. 

Sec. 809. Use of oil spill liability trust fund. 

Sec. 810. International efforts on enforcement. 

Sec. 811. Higher volume port area regulatory definition change. 

Sec. 812. Tug escorts for laden oil tankers. 

Sec. 813. Extension of financial responsibility. 

Sec. 814. Oil spill liability trust fund investment amount. 

Sec. 815. Liability for use of single-hull vessels. 

TITLE IX—MISCELLANEOUS PROVISIONS 

Sec. 901. Homeporting of the BIGELOW. 

Sec. 902. Vessel determination. 


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Sec. 903. Conveyance of the Presque Isle Light Station Fresnel Lens to Presque 

Isle Township, Michigan. 

Sec. 904. Land conveyance, Coast Guard property in Marquette County, Michigan, to the city of Marquette, Michigan. 

Sec. 905. Large offshore supply vessels. 

Sec. 906. Conveyance of decommissioned Coast Guard cutters STORIS, IRIS, 

and PLANETREE. 

Sec. 907. Access for personal watercraft. 

1 TITLE I—AUTHORIZATIONS 

2 SEC. 101. AUTHORIZATION OF APPROPRIATIONS. 

3 Funds are authorized to be appropriated for necessary 

4 expenses of the Coast Guard for each of fiscal years 2010 

5 and 2011 as follows: 

6 (1) For the operation and maintenance of the 

7 Coast Guard, $6,556,188,000, of which $24,500,000 is 

8 authorized to be derived from the Oil Spill Liability 

9 Trust Fund to carry out the purposes of section 

10 1012(a)(5) of the Oil Pollution Act of 1990. 

11 (2) For the acquisition, construction, renovation, 

12 and improvement of aids to navigation, shore and off13 shore facilities, vessels, and aircraft, including equip14 ment related thereto, $1,383,980,000, of which 

15 $20,000,000 shall be derived from the Oil Spill Li16 ability Trust Fund to carry out the purposes of sec17 tion 1012(a)(5) of the Oil Pollution Act of 1990, to 

18 remain available until expended; such funds appro19 priated for personnel compensation and benefits and 

20 related costs of acquisition, construction, and im21 provements shall be available for procurement of servVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6203 E:\BILLS\S1194.RS S1194

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1 ices necessary to carry out the Integrated Deepwater 

2 Systems program. 

3 (3) For retired pay (including the payment of 

4 obligations otherwise chargeable to lapsed appropria5 tions for this purpose), payments under the Retired 

6 Serviceman’s Family Protection and Survivor Benefit 

7 Plans, and payments for medical care of retired per8 sonnel and their dependents under chapter 55 of title 

9 10, United States Code, $1,361,245,000. 

10 (4) For environmental compliance and restora11 tion functions under chapter 19 of title 14, United 

12 States Code, $13,198,000. 

13 (5) For research, development, test, and evalua14 tion programs related to maritime technology, 

15 $19,745,000. 

16 (6) For operation and maintenance of the Coast 

17 Guard reserve program, $133,632,000. 

18 SEC. 102. AUTHORIZED LEVELS OF MILITARY STRENGTH 

19 AND TRAINING. 

20 (a) ACTIVE DUTY STRENGTH.—The Coast Guard is 

21 authorized an end-of-year strength of active duty personnel 

22 of 49,954 as of September 30, 2010, and 52,452 as of Sep23 tember 30, 2011. 


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1 (b) MILITARY TRAINING STUDENT LOADS.—The Coast 

2 Guard is authorized average military training student 

3 loads as follows: 

4 (1) For recruit and special training, 2,500 stu5 dent years for fiscal year 2010, and 2,625 student 

6 years for fiscal year 2011. 

7 (2) For flight training, 170 student years for fis8 cal year 2010 and 179 student years for fiscal year 

9 2011. 

10 (3) For professional training in military and ci11 vilian institutions, 350 student years for fiscal year 

12 2010 and 368 student years for fiscal year 2011. 

13 (4) For officer acquisition, 1,300 student years 

14 for fiscal year 2010 and 1,365 student years for fiscal 

15 year 2011. 

16 TITLE II—ADMINISTRATION 

17 SEC. 201. AUTHORITY TO DISTRIBUTE FUNDS THROUGH 

18 GRANTS, COOPERATIVE AGREEMENTS, AND 

19 CONTRACTS TO MARITIME AUTHORITIES AND 

20 ORGANIZATIONS. 

21 Section 149 of title 14, United States Code, is amended 

22 by adding at the end the following: 

23 ‘‘(c) GRANTS TO INTERNATIONAL MARITIME ORGANI24 ZATIONS.—The Commandant may, after consultation with 

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1 ative agreements, contracts, or other agreements with, inter2 national maritime organizations for the purpose of acquir3 ing information or data about merchant vessel inspections, 

4 security, safety and environmental requirements, classifica5 tion, and port state or flag state law enforcement or over6 sight.’’. 

7 SEC. 202. ASSISTANCE TO FOREIGN GOVERNMENTS AND 

8 MARITIME AUTHORITIES. 

9 Section 149 of title 14, United States Code, as amend10 ed by section 201, is further amended by adding at the end 

11 the following: 

12 ‘‘(d) AUTHORIZED ACTIVITIES.— 

13 ‘‘(1) The Commandant may transfer or expend 

14 funds from any appropriation available to the Coast 

15 Guard for— 

16 ‘‘(A) the activities of traveling contact 

17 teams, including any transportation expense, 

18 translation services expense, or administrative 

19 expense that is related to such activities; 

20 ‘‘(B) the activities of maritime authority li21 aison teams of foreign governments making re22 ciprocal visits to Coast Guard units, including 

23 any transportation expense, translation services 

24 expense, or administrative expense that is related 

25 to such activities; 


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1 ‘‘(C) seminars and conferences involving 

2 members of maritime authorities of foreign gov3 ernments; 

4 ‘‘(D) distribution of publications pertinent 

5 to engagement with maritime authorities of for6 eign governments; and 

7 ‘‘(E) personnel expenses for Coast Guard ci8 vilian and military personnel to the extent that 

9 those expenses relate to participation in an ac10 tivity described in subparagraph (C) or (D). 

11 ‘‘(2) An activity may not be conducted under 

12 this subsection with a foreign country unless the Sec13 retary of State approves the conduct of such activity 

14 in that foreign country.’’. 

15 SEC. 203. COOPERATIVE AGREEMENTS FOR INDUSTRIAL AC16 TIVITIES. 

17 Section 151 of title 14, United States Code, is amend18 ed— 

19 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

20 ‘‘All orders’’; and 

21 (2) by adding at the end the following: 

22 ‘‘(b) ORDERS AND AGREEMENTS FOR INDUSTRIAL AC23 TIVITIES.—Under this section, the Coast Guard industrial 

24 activities may accept orders and enter into reimbursable 

25 agreements with establishments, agencies, and departments 


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1 of the Department of Defense and the Department of Home2 land Security.’’. 

3 SEC. 204. DEFINING COAST GUARD VESSELS AND AIR4 CRAFT. 

5 (a) IN GENERAL.—Chapter 17 of title 14, United 

6 States Code, is amended by inserting after section 638 the 

7 following new section: 

8 ‘‘§ 638a. Coast Guard vessels and aircraft defined 

9 ‘‘For the purposes of sections 637 and 638 of this title, 

10 the term Coast Guard vessels and aircraft means— 

11 ‘‘(1) any vessel or aircraft owned, leased, trans12 ferred to, or operated by the Coast Guard and under 

13 the command of a Coast Guard member; or 

14 ‘‘(2) any other vessel or aircraft under the tac15 tical control of the Coast Guard on which one or more 

16 members of the Coast Guard are assigned and con17 ducting Coast Guard missions.’’. 

18 (b) CLERICAL AMENDMENT.—The table of contents for 

19 chapter 17 of such title is amended by inserting after the 

20 item relating to section 638 the following: 

‘‘638a. Coast Guard vessels and aircraft defined.’’. 

21 TITLE III—ORGANIZATION 

22 SEC. 301. VICE COMMANDANT; VICE ADMIRALS. 

23 (a) VICE COMMANDANT.—The fourth sentence of sec24 tion 47 of title 14, United States Code, is amended by strik25 ing ‘‘vice admiral’’ and inserting ‘‘admiral’’. 


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1 (b) VICE ADMIRALS.—Section 50 of such title is 

2 amended to read as follows: 

3 ‘‘§ 50. Vice admirals 

4 ‘‘(a)(1) The President may designate no more than 4 

5 positions of importance and responsibility that shall be held 

6 by officers who— 

7 ‘‘(A) while so serving, shall have the grade of vice 

8 admiral, with the pay and allowances of that grade; 

9 and 

10 ‘‘(B) shall perform such duties as the Com11 mandant may prescribe. 

12 ‘‘(2) The President may appoint, by and with the ad13 vice and consent of the Senate, and reappoint, by and with 

14 the advice and consent of the Senate, to any such position 

15 an officer of the Coast Guard who is serving on active duty 

16 above the grade of captain. The Commandant shall make 

17 recommendations for such appointments. 

18 ‘‘(b)(1) The appointment and the grade of vice admiral 

19 shall be effective on the date the officer assumes that duty 

20 and, except as provided in paragraph (2) of this subsection 

21 or in section 51(d) of this title, shall terminate on the date 

22 the officer is detached from that duty. 

23 ‘‘(2) An officer who is appointed to a position des24 ignated under subsection (a) shall continue to hold the 

25 grade of vice admiral— 


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1 ‘‘(A) while under orders transferring the officer 

2 to another position designated under subsection (a), 

3 beginning on the date the officer is detached from that 

4 duty and terminating on the date before the day the 

5 officer assumes the subsequent duty, but not for more 

6 than 60 days; 

7 ‘‘(B) while hospitalized, beginning on the day of 

8 the hospitalization and ending on the day the officer 

9 is discharged from the hospital, but not for more than 

10 180 days; and 

11 ‘‘(C) while awaiting retirement, beginning on the 

12 date the officer is detached from duty and ending on 

13 the day before the officer’s retirement, but not for 

14 more than 60 days. 

15 ‘‘(c)(1) An appointment of an officer under subsection 

16 (a) does not vacate the permanent grade held by the officer. 

17 ‘‘(2) An officer serving in a grade above rear admiral 

18 who holds the permanent grade of rear admiral (lower half) 

19 shall be considered for promotion to the permanent grade 

20 of rear admiral as if the officer was serving in the officer’s 

21 permanent grade. 

22 ‘‘(d) Whenever a vacancy occurs in a position des23 ignated under subsection (a), the Commandant shall inform 

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1 ing in that position or office to carry out effectively the 

2 duties and responsibilities of that position or office.’’. 

3 (c) REPEAL.—Section 50a of such title is repealed. 

4 (d) CONFORMING AMENDMENTS.—Section 51 of such 

5 title is amended— 

6 (1) by striking subsections (a), (b), and (c) and 

7 inserting the following: 

8 ‘‘(a) An officer, other than the Commandant, who, 

9 while serving in the grade of admiral or vice admiral, is 

10 retired for physical disability shall be placed on the retired 

11 list with the highest grade in which that officer served. 

12 ‘‘(b) An officer, other than the Commandant, who is 

13 retired while serving in the grade of admiral or vice admiral, or who, after serving at least 21 14 ⁄2 years in the grade 

15 of admiral or vice admiral, is retired while serving in a 

16 lower grade, may in the discretion of the President, be re17 tired with the highest grade in which that officer served. 

18 ‘‘(c) An officer, other than the Commandant, who, after 

serving less than 21 19 ⁄2 years in the grade of admiral or vice 

20 admiral, is retired while serving in a lower grade, shall 

21 be retired in his permanent grade.’’; and 

22 (2) by striking ‘‘Area Commander, or Chief of 

23 Staff’’ in subsection (d)(2) and inserting ‘‘or Vice Ad24 miral’’. 

25 (e) CLERICAL AMENDMENTS.— 


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1 (1) The section caption for section 47 of such 

2 title is amended to read as follows: 

3 ‘‘§ 47. Vice commandant; appointment’’. 

4 (2) The table of contents for chapter 3 of such 

5 title is amended— 

6 (A) by striking the item relating to section 

7 47 and inserting the following: 

‘‘47. Vice Commandant; appointment.’’; 

8 (B) by striking the item relating to section 

9 50a; and 

10 (C) by striking the item relating to section 

11 50 and inserting the following: 

‘‘50. Vice admirals.’’. 

12 (f) TECHNICAL CORRECTION.—Section 47 of such title 

13 is further amended by striking ‘‘subsection’’ in the fifth sen14 tence and inserting ‘‘section’’. 

15 (g) TREATMENT OF INCUMBENTS; TRANSITION.— 

16 (1) Notwithstanding any other provision of law, 

17 the officer who, on the date of enactment of this Act, 

18 is serving as Vice Commandant— 

19 (A) shall continue to serve as Vice Com20 mandant; 

21 (B) shall have the grade of admiral with 

22 pay and allowances of that grade; and 

23 (C) shall not be required to be reappointed 

24 by reason of the enactment of that Act. 


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1 (2) Notwithstanding any other provision of law, 

2 an officer who, on the date of enactment of this Act, 

3 is serving as Chief of Staff, Commander, Atlantic 

4 Area, or Commander, Pacific Area— 

5 (A) shall continue to have the grade of vice 

6 admiral with pay and allowance of that grade 

7 until such time that the officer is relieved of his 

8 duties and appointed and confirmed to another 

9 position as a vice admiral or admiral; and 

10 (B) for the purposes of transition, may con11 tinue, for not more than 1 year after the date of 

12 enactment of this Act, to perform the duties of 

13 the officer’s former position and any other such 

14 duties that the Commandant prescribes. 

15 SEC. 302. NUMBER AND DISTRIBUTION OF COMMISSIONED 

16 OFFICERS ON THE ACTIVE DUTY PROMOTION 

17 LIST. 

18 (a) IN GENERAL.—Section 42 of title 14, United 

19 States Code, is amended— 

20 (1) by striking subsections (a), (b), and (c) and 

21 inserting the following: 

22 ‘‘(a) The total number of Coast Guard commissioned 

23 officers on the active duty promotion list, excluding war24 rant officers, shall not exceed 7,200. This total number may 

25 be temporarily increased up to 2 percent for no more than 


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1 the 60 days that follow the commissioning of a Coast Guard 

2 Academy class. 

3 ‘‘(b) The total number of commissioned officers author4 ized by this section shall be distributed in grade not to ex5 ceed the following percentages: 

6 ‘‘(1) 0.375 percent for rear admiral. 

7 ‘‘(2) 0.375 percent for rear admiral (lower half). 

8 ‘‘(3) 6.0 percent for captain. 

9 ‘‘(4) 15.0 percent for commander. 

10 ‘‘(5) 22.0 percent for lieutenant commander. 

11 The Secretary shall prescribe the percentages applicable to 

12 the grades of lieutenant, lieutenant (junior grade), and en13 sign. The Secretary may, as the needs of the Coast Guard 

14 require, reduce any of the percentages set forth in para15 graphs (1) through (5) and apply that total percentage re16 duction to any other lower grade or combination of lower 

17 grades. 

18 ‘‘(c) The Secretary shall, at least once a year, compute 

19 the total number of commissioned officers authorized to 

20 serve in each grade by applying the grade distribution per21 centages of this section to the total number of commissioned 

22 officers listed on the current active duty promotion list. In 

23 making such calculations, any fraction shall be rounded to 

24 the nearest whole number. The number of commissioned of25 ficers on the active duty promotion list serving with other 


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1 departments or agencies on a reimbursable basis or excluded 

2 under the provisions of section 324(d) of title 49, shall not 

3 be counted against the total number of commissioned offi4 cers authorized to serve in each grade.’’; 

5 (2) by striking subsection (e) and inserting the 

6 following: 

7 ‘‘(e) The number of officers authorized to be serving 

8 on active duty in each grade of the permanent commis9 sioned teaching staff of the Coast Guard Academy and of 

10 the Reserve serving in connection with organizing, admin11 istering, recruiting, instructing, or training the reserve 

12 components shall be prescribed by the Secretary.’’; and 

13 (3) by striking the caption of such section and 

14 inserting the following: 

15 ‘‘§ 42. Number and distribution of commissioned offi16 cers on the active duty promotion list’’. 

17 (b) CLERICAL AMENDMENT.—The table of contents for 

18 chapter 3 of such title is amended by striking the item relat19 ing to section 42 and inserting the following: 

‘‘42. Number and distribution of commissioned officers on the active duty promotion list.’’. 

20 TITLE IV—PERSONNEL 

21 SEC. 401. LEAVE RETENTION AUTHORITY. 

22 Section 701(f)(2) of title 10, United States Code, is 

23 amended by inserting ‘‘or a declaration of a major disaster 

24 or emergency by the President under the Robert T. Stafford 


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1 Disaster Relief and Emergency Assistance Act (Public Law 

2 93–288, 42 U.S.C. 5121 et seq.)’’ after ‘‘operation’’. 

3 SEC. 402. LEGAL ASSISTANCE FOR COAST GUARD RESERV4 ISTS. 

5 Section 1044(a)(4) of title 10, United States Code, is 

6 amended— 

7 (1) by striking ‘‘(as determined by the Secretary 

8 of Defense),’’ and inserting ‘‘(as determined by the 

9 Secretary of Defense and the Secretary of the depart10 ment in which the Coast Guard is operating, with re11 spect to the Coast Guard when it is not operating as 

12 a service of the Navy),’’; and 

13 (2) by striking ‘‘prescribed by the Secretary of 

14 Defense,’’ and inserting ‘‘prescribed by Secretary of 

15 Defense and the Secretary of the department in which 

16 the Coast Guard is operating, with respect to the 

17 Coast Guard when it is not operating as a service of 

18 the Navy,’’. 

19 SEC. 403. REIMBURSEMENT FOR CERTAIN MEDICAL-RE20 LATED TRAVEL EXPENSES. 

21 Section 1074i(a) of title 10, United States Code, is 

22 amended— 

23 (1) by striking ‘‘IN GENERAL.—In’’ and insert24 ing ‘‘IN GENERAL.—(1) In’’; and 

25 (2) by adding at the end the following: 


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1 ‘‘(2) In any case in which a covered beneficiary resides 

2 on an INCONUS island that lacks public access roads to 

3 the mainland and is referred by a primary care physician 

4 to a specialty care provider on the mainland who provides 

5 services less than 100 miles from the location in which the 

6 beneficiary resides, the Secretary shall reimburse the rea7 sonable travel expenses of the covered beneficiary, and, when 

8 accompaniment by an adult is necessary, for a parent or 

9 guardian of the covered beneficiary or another member of 

10 the covered beneficiary’s family who is at least 21 years 

11 of age.’’. 

12 SEC. 404. RESERVE COMMISSIONED WARRANT OFFICER TO 

13 LIEUTENANT PROGRAM. 

14 Section 214(a) of title 14, United States Code, is 

15 amended to read as follows: 

16 ‘‘(a) The President may appoint temporary commis17 sioned officers— 

18 ‘‘(1) in the Regular Coast Guard in a grade, not 

19 above lieutenant, appropriate to their qualifications, 

20 experience, and length of service, as the needs of the 

21 Coast Guard may require, from among the commis22 sioned warrant officers, warrant officers, and enlisted 

23 members of the Coast Guard, and from licensed offi24 cers of the United States merchant marine; and 


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1 ‘‘(2) in the Coast Guard Reserve in a grade, not 

2 above lieutenant, appropriate to their qualifications, 

3 experience, and length of service, as the needs of the 

4 Coast Guard may require, from among the commis5 sioned warrant officers of the Coast Guard Reserve.’’. 

6 SEC. 405. ENHANCED STATUS QUO OFFICER PROMOTION 

7 SYSTEM. 

8 (a) Section 253(a) of title 14, United States Code, is 

9 amended— 

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

11 (2) by striking ‘‘consideration, and the number 

12 of officers the board may recommend for promotion’’ 

13 and inserting ‘‘consideration’’. 

14 (b) Section 258 of such title is amended— 

15 (1) by inserting ‘‘(a)’’ before ‘‘The Secretary’’; 

16 and 

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

18 ‘‘(b) In addition to the information provided pursuant 

19 to subsection (a), the Secretary may furnish the selection 

20 board— 

21 ‘‘(1) specific direction relating to the needs of the 

22 service for officers having particular skills, including 

23 direction relating to the need for a minimum number 

24 of officers with particular skills within a specialty; 

25 and 


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1 ‘‘(2) such other guidance that the Secretary be2 lieves may be necessary to enable the board to prop3 erly perform its functions. 

4 Selections made based on the direction and guidance pro5 vided under this subsection shall not exceed the maximum 

6 percentage of officers who may be selected from below the 

7 announced promotion zone at any given selection board 

8 convened under section 251 of this title.’’. 

9 (c) Section 259(a) of such title is amended by striking 

10 ‘‘board’’ the second place it appears and inserting ‘‘board, 

11 giving due consideration to the needs of the service for offi12 cers with particular skills so noted in the specific direction 

13 furnished pursuant to section 258 of this title,’’. 

14 (d) Section 260(b) of such title is amended by inserting 

15 ‘‘to meet the needs of the service (as noted in the specific 

16 direction furnished the board under section 258 of this 

17 title)’’ after ‘‘qualified for promotion’’. 

18 SEC. 406. APPOINTMENT OF CIVILIAN COAST GUARD 

19 JUDGES. 

20 Section 875 of the Homeland Security Act of 2002 (6 

21 U.S.C. 455) is amended— 

22 (1) by redesignating subsection (c) as subsection 

23 (d); and 

24 (2) by inserting after subsection (b) the fol25 lowing: 


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1 ‘‘(c) APPOINTMENT OF JUDGES.—The Secretary may 

2 appoint civilian employees of the Department of Homeland 

3 Security as appellate military judges, available for assign4 ment to the Coast Guard Court of Criminal Appeals as pro5 vided for in section 866(a) of title 10, United States Code.’’. 

6 SEC. 407. COAST GUARD PARTICIPATION IN THE ARMED 

7 FORCES RETIREMENT HOME SYSTEM. 

8 (a) ELIGIBILITY UNDER THE ARMED FORCES RETIRE9 MENT HOME ACT.—Section 1502 of the Armed Forces Re10 tirement Home Act of 1991 (24 U.S.C. 401) is amended— 

11 (1) by striking ‘‘does not include the Coast 

12 Guard when it is not operating as a service of the 

13 Navy.’’ in paragraph (4) and inserting ‘‘has the 

14 meaning given such term in section 101(4) of title 

15 10.’’; 

16 (2) by striking ‘‘and’’ in paragraph (5)(C); 

17 (3) by striking ‘‘Affairs.’’ in paragraph (5)(D) 

18 and inserting ‘‘Affairs; and’’; 

19 (4) by adding at the end of paragraph (5) the 

20 following: 

21 ‘‘(E) the Assistant Commandant of the 

22 Coast Guard for Human Resources.’’; and 

23 (5) by adding at the end of paragraph (6) the 

24 following: 


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1 ‘‘(E) The Master Chief Petty Officer of the 

2 Coast Guard.’’. 

3 (b) DEDUCTIONS.— 

4 (1) Section 2772 of title 10, United States Code, 

5 is amended— 

6 (A) by striking ‘‘of the military depart7 ment’’ in subsection (a); 

8 (B) by striking ‘‘Armed Forces Retirement 

9 Home Board’’ in subsection (b) and inserting 

10 ‘‘Chief Operating Officer of the Armed Forces 

11 Retirement Home’’; and 

12 (C) by striking subsection (c). 

13 (2) Section 1007(i) of title 37, United States 

14 Code, is amended— 

15 (A) by striking ‘‘Armed Forces Retirement 

16 Home Board,’’ in paragraph (3) and inserting 

17 ‘‘Chief Operating Officer of the Armed Forces 

18 Retirement Home,’’; and 

19 (B) by striking ‘‘does not include the Coast 

20 Guard when it is not operating as a service of 

21 the Navy.’’ in paragraph (4) and inserting ‘‘has 

22 the meaning given such term in section 101(4) of 

23 title 10.’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall take effect on the first day of the first pay pe3 riod beginning on or after January 1, 2010. 

4 SEC. 408. CREW WAGES ON PASSENGER VESSELS. 

5 (a) FOREIGN AND INTERCOASTAL VOYAGES.— 

6 (1) LIMITATIONS ON PENALTY WAGE CLAIMS.— 

7 Section 10313 of title 46, United States Code, is 

8 amended by adding at the end thereof the following: 

9 ‘‘(j) CLASS ACTIONS.—A class action suit by seamen 

10 employed on a passenger vessel for wages under this sub11 section may not be commenced more than 3 years after the 

12 date of the end of the last voyage for which the wages are 

13 claimed.’’. 

14 (2) DEPOSITS.—Section 10315 of such title is 

15 amended by adding at the end the following: 

16 ‘‘(f) A seaman employed on a passenger vessel may au17 thorize, by written request signed by the seaman, the mas18 ter, owner, or operator of the vessel, or the employer of the 

19 seaman, to make deposits of wages of the seaman into a 

20 checking, savings, investment, or retirement account, or 

21 other account to secure a payroll or debit card for the sea22 man if— 

23 ‘‘(1) the wages designated by the seaman for such 

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1 national financial institution designated by the sea2 man; 

3 ‘‘(2) such deposits in the financial institution 

4 are fully guaranteed under commonly accepted inter5 national standards by the government of the country 

6 in which the financial institution is licensed; 

7 ‘‘(3) a written wage statement or pay stub, in8 cluding an accounting of any direct deposit, is deliv9 ered to the seaman no less often than monthly; and 

10 ‘‘(4) while on board the vessel on which the sea11 man is employed, the seaman is able to arrange for 

12 withdrawal of all funds on deposit in the account in 

13 which the wages are deposited.’’. 

14 (b) COASTWISE VOYAGES.— 

15 (1) LIMITATION ON PENALTY WAGE CLAIMS.— 

16 Section 10504 of such title is amended by adding at 

17 the end thereof the following:— 

18 ‘‘(f) CLASS ACTIONS.—A class action suit by seamen 

19 employed on a passenger vessel for wages under this sub20 section may not be commenced more than 3 years after the 

21 date of the end of the last voyage for which the wages are 

22 claimed.’’. 

23 (2) DEPOSITS.—Section 10504 of such title is 

24 further amended by adding at the end the following: 


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1 ‘‘(g) DEPOSITS.—A seaman employed on a passenger 

2 vessel may authorize, by written request signed by the sea3 man, the master, owner, or operator of the vessel, or the 

4 employer of the seaman, to make deposits of wages of the 

5 seaman into a checking, savings, investment, or retirement 

6 account, or other account to secure a payroll or debit card 

7 for the seaman if— 

8 ‘‘(1) the wages designated by the seaman for such 

9 deposit are deposited in a United States or inter10 national financial institution designated by the sea11 man; 

12 ‘‘(2) such deposits in the financial institution 

13 are fully guaranteed under commonly accepted inter14 national standards by the government of the country 

15 in which the financial institution is licensed; 

16 ‘‘(3) a written wage statement or pay stub, in17 cluding an accounting of any direct deposit, is deliv18 ered to the seaman no less often than monthly; and 

19 ‘‘(4) while on board the vessel on which the sea20 man is employed, the seaman is able to arrange for 

21 withdrawal of all funds on deposit in the account in 

22 which the wages are deposited.’’. 


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1 TITLE V—ACQUISITION REFORM 

2 SEC. 501. CHIEF ACQUISITION OFFICER. 

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

4 Code, is amended by adding at the end the following: 

5 ‘‘§ 55. Chief Acquisition Officer 

6 ‘‘(a) IN GENERAL.—There shall be in the Coast Guard 

7 a Chief Acquisition Officer selected by the Commandant 

8 who shall be a Rear Admiral or civilian from the Senior 

9 Executive Service (career reserved). The Chief Acquisition 

10 Officer shall serve at the Assistant Commandant level and 

11 have acquisition management as that individual’s primary 

12 duty. 

13 ‘‘(b) QUALIFICATIONS.—The Chief Acquisition Officer 

14 shall be an acquisition professional with a Level III certifi15 cation and must have at least 10 years experience in an 

16 acquisition position, of which at least 4 years were spent 

17 as— 

18 ‘‘(1) the program executive officer; 

19 ‘‘(2) the program manager of a Level 1 or Level 

20 2 acquisition project or program; 

21 ‘‘(3) the deputy program manager of a Level 1 

22 or Level 2 acquisition; or 

23 ‘‘(4) a combination of such positions. 


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1 ‘‘(c) FUNCTIONS OF THE CHIEF ACQUISITION OFFI2 CER.—The functions of the Chief Acquisition Officer in3 clude— 

4 ‘‘(1) monitoring the performance of programs 

5 and projects on the basis of applicable performance 

6 measurements and advising the Commandant, 

7 through the chain of command, regarding the appro8 priate business strategy to achieve the missions of the 

9 Coast Guard; 

10 ‘‘(2) maximizing the use of full and open com11 petition at the prime contract and subcontract levels 

12 in the acquisition of property, capabilities, and serv13 ices by the Coast Guard by establishing policies, pro14 cedures, and practices that ensure that the Coast 

15 Guard receives a sufficient number of competitive 

16 proposals from responsible sources to fulfill the Gov17 ernment’s requirements, including performance and 

18 delivery schedules, at the lowest cost or best value con19 sidering the nature of the property or service pro20 cured; 

21 ‘‘(3) making acquisition decisions in concurrence 

22 with the technical authority, or technical authorities, 

23 as appropriate, of the Coast Guard, as designated by 

24 the Commandant, consistent with all other applicable 


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1 laws and decisions establishing procedures within the 

2 Coast Guard; 

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

4 specifications in instances in which performance 

5 based contracting is used; 

6 ‘‘(5) managing the direction of acquisition policy 

7 for the Coast Guard, including implementation of the 

8 unique acquisition policies, regulations, and stand9 ards of the Coast Guard; 

10 ‘‘(6) developing and maintaining an acquisition 

11 career management program in the Coast Guard to 

12 ensure that there is an adequate acquisition work13 force; 

14 ‘‘(7) assessing the requirements established for 

15 Coast Guard personnel regarding knowledge and skill 

16 in acquisition resources and management and the 

17 adequacy of such requirements for facilitating the 

18 achievement of the performance goals established for 

19 acquisition management; 

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

21 hiring, training, and professional development; and 

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

23 chain of command, on the progress made in improv24 ing acquisition management capability.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of contents for 

2 chapter 3 of title 14, United States Code, is amended by 

3 adding at the end the following: 

‘‘55. Chief Acquisition Officer.’’. 

4 (c) SELECTION DEADLINE.—As soon as practicable 

5 after the date of enactment of this Act, but no later than 

6 October 1, 2011, the Commandant of the Coast Guard shall 

7 select a Chief Acquisition Officer under section 55 of title 

8 14, United States Code. 

9 SEC. 502. ACQUISITIONS. 

10 (a) IN GENERAL.—Part I of title 14, United States 

11 Code, is amended by inserting after chapter 13 the fol12 lowing: 

13 ‘‘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 


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1 ‘‘SUBCHAPTER 1—GENERAL PROVISIONS

2 ‘‘§ 561. Acquisition directorate 

3 ‘‘(a) ESTABLISHMENT.—The Commandant of the 

4 Coast Guard shall establish an acquisition directorate to 

5 provide guidance and oversight for the implementation and 

6 management of all Coast Guard acquisition processes, pro7 grams, and projects. 

8 ‘‘(b) MISSION.—The mission of the acquisition direc9 torate is— 

10 ‘‘(1) to acquire and deliver assets and systems 

11 that increase operational readiness, enhance mission 

12 performance, and create a safe working environment; 

13 and 

14 ‘‘(2) to assist in the development of a workforce 

15 that is trained and qualified to further the Coast 

16 Guard’s missions and deliver the best value products 

17 and services to the Nation. 

18 ‘‘§ 562. Senior acquisition leadership team 

19 ‘‘(a) ESTABLISHMENT.—The Commandant shall estab20 lish a senior acquisition leadership team within the Coast 

21 Guard comprised of— 

22 ‘‘(1) the Vice Commandant; 

23 ‘‘(2) the Deputy and Assistant Commandants; 

24 ‘‘(3) appropriate senior staff members of each 

25 Coast Guard directorate; 


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1 ‘‘(4) appropriate senior staff members for each 

2 assigned field activity or command; and 

3 ‘‘(5) any other Coast Guard officer or employee 

4 designated by the Commandant. 

5 ‘‘(b) FUNCTION.—The senior acquisition leadership 

6 team shall— 

7 ‘‘(1) meet at the call of the Commandant at such 

8 places and such times as the Commandant may re9 quire; 

10 ‘‘(2) provide advice and information on oper11 ational and performance requirements of the Coast 

12 Guard; 

13 ‘‘(3) identify gaps and vulnerabilities in the 

14 operational readiness of the Coast Guard; 

15 ‘‘(4) make recommendations to the Commandant 

16 and the Chief Acquisition Officer to remedy the iden17 tified gaps and vulnerabilities in the operational 

18 readiness of the Coast Guard; and 

19 ‘‘(5) contribute to the development of a profes20 sional, experienced acquisition workforce by providing 

21 acquisition-experience tours of duty and educational 

22 development for officers and employees of the Coast 

23 Guard. 


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1 ‘‘§ 563. Improvements in Coast Guard acquisition 

2 management 

3 ‘‘(a) PROJECT AND PROGRAM MANAGERS.— 

4 ‘‘(1) PROJECT OR PROGRAM MANAGER DE5 FINED.—In this section, the term ‘project or program 

6 manager’ means an individual designated— 

7 ‘‘(A) to develop, produce, and deploy a new 

8 asset to meet identified operational requirements; 

9 and 

10 ‘‘(B) to manage cost, schedule, and perform11 ance of the acquisition or project or program. 

12 ‘‘(2) LEVEL 1 PROJECTS.— An individual may 

13 not be assigned as the project or program manager for 

14 a Level 1 acquisition unless the individual holds a 

15 Level III acquisition certification as a program man16 ager. 

17 ‘‘(3) LEVEL 2 PROJECTS.—An individual may 

18 not be assigned as the project or program manager for 

19 a Level 2 acquisition unless the individual holds a 

20 Level II acquisition certification as a program man21 ager. 

22 ‘‘(b) GUIDANCE ON TENURE AND ACCOUNTABILITY OF

23 PROGRAM AND PROJECT MANAGERS.—Not later than one 

24 year after the date of enactment of the Coast Guard Author25 ization Act for Fiscal years 2010 and 2011, the Com26 mandant shall issue guidance to address the qualifications, 


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1 resources, responsibilities, tenure, and accountability of 

2 program and project managers for the management of ac3 quisition programs and projects. The guidance shall ad4 dress, at a minimum— 

5 ‘‘(1) the qualifications required for project or 

6 program managers, including the number of years of 

7 acquisition experience and the professional training 

8 levels to be required of those appointed to project or 

9 program management positions; and 

10 ‘‘(2) authorities available to project or program 

11 managers, including, to the extent appropriate, the 

12 authority to object to the addition of new program re13 quirements that would be inconsistent with the pa14 rameters established for an acquisition program. 

15 ‘‘(c) ACQUISITION WORKFORCE.— 

16 ‘‘(1) IN GENERAL.—The Commandant shall des17 ignate a sufficient number of positions to be in the 

18 Coast Guard’s acquisition workforce to perform acqui19 sition-related functions at Coast Guard headquarters 

20 and field activities. 

21 ‘‘(2) REQUIRED POSITIONS.—The Commandant 

22 shall ensure that members of the acquisition workforce 

23 have expertise, education, and training in at least 1 

24 of the following acquisition career fields: 

25 ‘‘(A) Acquisition logistics. 


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1 ‘‘(B) Auditing. 

2 ‘‘(C) Business, cost estimating, and finan3 cial management. 

4 ‘‘(D) Contracting. 

5 ‘‘(E) Facilities engineering. 

6 ‘‘(F) Industrial or contract property man7 agement. 

8 ‘‘(G) Information technology. 

9 ‘‘(H) Manufacturing, production, and qual10 ity assurance. 

11 ‘‘(I) Program management. 

12 ‘‘(J) Purchasing. 

13 ‘‘(K) Science and technology. 

14 ‘‘(L) Systems planning, research, develop15 ment, and engineering. 

16 ‘‘(M) Test and evaluation. 

17 ‘‘(3) ACQUISITION WORKFORCE EXPEDITED HIR18 ING AUTHORITY.— 

19 ‘‘(A) IN GENERAL.—For purposes of sections 

20 3304, 5333, and 5753 of title 5, the Com21 mandant may— 

22 ‘‘(i) designate any category of acquisi23 tion positions within the Coast Guard as 

24 shortage category positions; and 


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1 ‘‘(ii) use the authorities in such sec2 tions to recruit and appoint highly quali3 fied person directly to positions so des4 ignated. 

5 ‘‘(B) LIMITATION.—The Commandant may 

6 not appoint a person to a position of employ7 ment under this paragraph after September 30, 

8 2012. 

9 ‘‘(d) MANAGEMENT INFORMATION SYSTEM.— 

10 ‘‘(1) IN GENERAL.—The Commandant shall es11 tablish a management information system capability 

12 to improve acquisition workforce management and re13 porting. 

14 ‘‘(2) INFORMATION MAINTAINED.—Information 

15 maintained with such capability shall include the fol16 lowing standardized information on individuals as17 signed to positions in the workforce: 

18 ‘‘(A) Qualifications, assignment history, 

19 and tenure of those individuals assigned to posi20 tions in the acquisition workforce or holding ac21 quisition-related certifications. 

22 ‘‘(B) Promotion rates for officers and mem23 bers of the Coast Guard in the acquisition work24 force. 


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1 ‘‘(e) CAREER PATHS.—To establish acquisition man2 agement as a core competency of the Coast Guard, the Com3 mandant shall— 

4 ‘‘(1) ensure that career paths for officers, mem5 bers, and employees of the Coast Guard who wish to 

6 pursue careers in acquisition are identified in terms 

7 of the education, training, experience, and assign8 ments necessary for career progression of those offi9 cers, members, and employees to the most senior posi10 tions in the acquisition workforce; and 

11 ‘‘(2) publish information on such career paths. 

12 ‘‘§ 564. Recognition of Coast Guard personnel for ex13 cellence in acquisition 

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

15 date of enactment of the Coast Guard Authorization Act for 

16 Fiscal Years 2010 and 2011, the Commandant shall com17 mence implementation of a program to recognize excellent 

18 performance by individuals and teams comprised of officers, 

19 members, and employees of the Coast Guard that contrib20 uted to the long-term success of a Coast Guard acquisition 

21 project or program. 

22 ‘‘(b) ELEMENTS.—The program shall include— 

23 ‘‘(1) specific award categories, criteria, and eli24 gibility and manners of recognition; 


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1 ‘‘(2) procedures for the nomination by personnel 

2 of the Coast Guard of individuals and teams com3 prised of officers, members, and employees of the 

4 Coast Guard for recognition under the program; and 

5 ‘‘(3) procedures for the evaluation of nomina6 tions for recognition under the program by one or 

7 more panels of individuals from the Government, aca8 demia, and the private sector who have such expertise 

9 and are appointed in such manner as the Com10 mandant shall establish for the purposes of this pro11 gram. 

12 ‘‘(c) AWARD OF CASH BONUSES.—As part of the pro13 gram required by subsection (a), the Commandant, subject 

14 to the availability of appropriations, may award to any 

15 civilian employee recognized pursuant to the program a 

16 cash bonus to the extent that the performance of such indi17 vidual so recognized warrants the award of such bonus. 

18 ‘‘§ 565. Prohibition on use of lead systems integrators 

19 ‘‘(a) IN GENERAL.— 

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

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

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1 actment of the Coast Guard Authorization Act for 

2 Fiscal Years 2010 and 2011. 

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

5 the Coast Guard, pursuant to the exceptions described 

6 in subsection (b), shall use full and open competition 

7 for any acquisition contract awarded after the date of 

8 enactment of that Act, unless otherwise excepted in 

9 accordance with the Competition in Contracting Act 

10 of 1984 (41 U.S.C. 251 note), the amendments made 

11 by that Act, and the Federal Acquisition Regulations. 

12 ‘‘(3) NO EFFECT ON SMALL BUSINESS ACT.— 

13 Nothing in this subsection shall be construed to super14 sede or otherwise affect the authorities provided by 

15 and under the Small Business Act (15 U.S.C. 631 et 

16 seq.). 

17 ‘‘(b) EXCEPTIONS.— 

18 ‘‘(1) NATIONAL DISTRESS AND RESPONSE SYS19 TEM MODERNIZATION PROGRAM; NATIONAL SECURITY

20 CUTTERS 2 AND 3.—Notwithstanding subsection (a), 

21 the Commandant may use a private sector entity as 

22 a lead systems integrator for the Coast Guard to com23 plete the National Distress and Response System 

24 Modernization Program, the C4ISR projects directly 

25 related to the Integrated Deepwater Program, and 


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1 National Security Cutters 2 and 3 if the Secretary of 

2 Homeland Security certifies that— 

3 ‘‘(A) the acquisition is in accordance with 

4 the Competition in Contracting Act of 1984 (41 

5 U.S.C. 251 note), the amendments made by that 

6 Act, and the Federal Acquisition Regulations; 

7 and 

8 ‘‘(B) the acquisition and the use of a pri9 vate sector entity as a lead systems integrator for 

10 the acquisition is in the best interest of the Fed11 eral Government. 

12 ‘‘(2) TERMINATION DATE FOR EXCEPTIONS.—Ex13 cept for the modification of delivery or task orders 

14 pursuant to Parts 4 and 42 of the Federal Acquisi15 tion Regulations, the Commandant may not use a 

16 private sector entity as a lead systems integrator after 

17 the earlier of— 

18 ‘‘(A) September 30, 2012; or 

19 ‘‘(B) the date on which the Commandant 

20 certifies in writing to the appropriate congres21 sional committees that the Coast Guard has 

22 available and can retain sufficient contracting 

23 personnel and expertise within the Coast Guard, 

24 through an arrangement with other Federal 

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1 ments with private sector entities, to perform the 

2 functions and responsibilities of the lead system 

3 integrator in an efficient and cost-effective man4 ner. 

5 ‘‘§ 566. Required contract terms 

6 ‘‘(a) IN GENERAL.—The Commandant shall ensure 

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

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

9 an expected service life of 10 years and with a total acquisi10 tion cost that is equal to or exceeds $10,000,000 awarded 

11 or issued by the Coast Guard after the date of enactment 

12 of the Coast Guard Authorization Act for Fiscal Years 2010 

13 and 2011— 

14 ‘‘(1) provides that all certifications for an end15 state capability or asset under such contract, delivery 

16 order, or task order, respectively, will be conducted by 

17 the Commandant or an independent third party, and 

18 that self-certification by a contractor or subcontractor 

19 is not allowed; 

20 ‘‘(2) requires that the Commandant shall main21 tain the authority to establish, approve, and main22 tain technical requirements; 

23 ‘‘(3) requires that any measurement of contractor 

24 and subcontractor performance be based on the status 

25 of all work performed, including the extent to which 


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1 the work performed met all performance, cost, and 

2 schedule requirements; 

3 ‘‘(4) specifies that, for the acquisition or upgrade 

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

5 which compliance with TEMPEST certification is a 

6 requirement, the standard for determining such com7 pliance will be the air, surface, or shore standard then 

8 used by the Department of the Navy for that type of 

9 capability or asset; and 

10 ‘‘(5) for any contract awarded to acquire an Off11 shore Patrol Cutter, includes provisions specifying the 

12 service life, fatigue life, and days underway in gen13 eral Atlantic and North Pacific Sea conditions, max14 imum range, and maximum speed the cutter will be 

15 built to achieve. 

16 ‘‘(b) PROHIBITED CONTRACT PROVISIONS.—The Com17 mandant shall ensure that any contract awarded or deliv18 ery order or task order issued by the Coast Guard after the 

19 date of enactment of the Coast Guard Authorization Act for 

20 Fiscal Years 2010 and 2011 does not include any provision 

21 allowing for equitable adjustment that is not consistent with 

22 the Federal Acquisition Regulations. 

23 ‘‘(c) INTEGRATED PRODUCT TEAMS.—Integrated prod24 uct teams, and all teams that oversee integrated product 


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1 teams, shall be chaired by officers, members, or employees 

2 of the Coast Guard. 

3 ‘‘(d) DEEPWATER TECHNICAL AUTHORITIES.—The 

4 Commandant shall maintain or designate the technical au5 thorities to establish, approve, and maintain technical re6 quirements. Any such designation shall be made in writing 

7 and may not be delegated to the authority of the Chief Ac8 quisition Officer established by section 55 of this title. 

9 ‘‘§ 567. Department of Defense consultation 

10 ‘‘(a) IN GENERAL.—The Commandant shall make ar11 rangements as appropriate with the Secretary of Defense 

12 for support in contracting and management of Coast Guard 

13 acquisition programs. The Commandant shall also seek op14 portunities to make use of Department of Defense contracts, 

15 and contracts of other appropriate agencies, to obtain the 

16 best possible price for assets acquired for the Coast Guard. 

17 ‘‘(b) INTER-SERVICE TECHNICAL ASSISTANCE.—The 

18 Commandant shall seek to enter into a memorandum of un19 derstanding or a memorandum of agreement with the Sec20 retary of the Navy to obtain the assistance of the Office of 

21 the Assistant Secretary of the Navy for Research, Develop22 ment, and Acquisition, including the Navy Systems Com23 mand, with the oversight of Coast Guard major acquisition 

24 programs. The memorandum of understanding or memo25 randum of agreement shall, at a minimum, provide for— 


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1 ‘‘(1) the exchange of technical assistance and 

2 support that the Assistant Commandants for Acquisi3 tion, Human Resources, Engineering, and Informa4 tion technology may identify; 

5 ‘‘(2) the use, as appropriate, of Navy technical 

6 expertise; and 

7 ‘‘(3) the exchange of personnel between the Coast 

8 Guard and the Office of the Assistant Secretary of the 

9 Navy for Research, Development, and Acquisition, in10 cluding Naval Systems Commands, to facilitate the 

11 development of organic capabilities in the Coast 

12 Guard. 

13 ‘‘(c) TECHNICAL REQUIREMENT APPROVAL PROCE14 DURES.—The Chief Acquisition Officer shall adopt, to the 

15 extent practicable, procedures modeled after those used by 

16 the Navy Senior Acquisition Official to approve all tech17 nical requirements. 

18 ‘‘§ 568. Undefinitized contractual actions 

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

20 into an undefinitized contractual action unless such action 

21 is directly approved by the Head of Contracting Activity 

22 of the Coast Guard. 

23 ‘‘(b) REQUESTS FOR UNDEFINITIZED CONTRACTUAL

24 ACTIONS.—Any request to the Head of Contracting Activity 

25 for approval of an undefinitized contractual action shall 


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1 include a description of the anticipated effect on require2 ments of the Coast Guard if a delay is incurred for the 

3 purposes of determining contractual terms, specifications, 

4 and price before performance is begun under the contractual 

5 action. 

6 ‘‘(c) REQUIREMENTS FOR UNDEFINITIZED CONTRAC7 TUAL ACTIONS.— 

8 ‘‘(1) DEADLINE FOR AGREEMENT ON TERMS, 

9 SPECIFICATIONS, AND PRICE.—A contracting officer of 

10 the Coast Guard may not enter into an undefinitized 

11 contractual action unless the contractual action pro12 vides for agreement upon contractual terms, specifica13 tion, and price by the earlier of— 

14 ‘‘(A) the end of the 180-day period begin15 ning on the date on which the contractor submits 

16 a qualifying proposal to definitize the contrac17 tual terms, specifications, and price; or 

18 ‘‘(B) the date on which the amount of funds 

19 obligated under the contractual action is equal to 

20 more than 50 percent of the negotiated overall 

21 ceiling price for the contractual action. 

22 ‘‘(2) LIMITATION ON OBLIGATIONS.— 

23 ‘‘(A) IN GENERAL.—Except as provided in 

24 subparagraph (B), the contracting officer for an 

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1 gate under such contractual action an amount 

2 that exceeds 50 percent of the negotiated overall 

3 ceiling price until the contractual terms, speci4 fications, and price are definitized for such con5 tractual action. 

6 ‘‘(B) EXCEPTION.—Notwithstanding sub7 paragraph (A), if a contractor submits a quali8 fying proposal to definitize an undefinitized con9 tractual action before an amount that exceeds 50 

10 percent of the negotiated overall ceiling price is 

11 obligated on such action, the contracting officer 

12 for such action may not obligate with respect to 

13 such contractual action an amount that exceeds 

14 75 percent of the negotiated overall ceiling price 

15 until the contractual terms, specifications, and 

16 price are definitized for such contractual action. 

17 ‘‘(3) WAIVER.—The Commandant may waive the 

18 application of this subsection with respect to a con19 tract if the Commandant determines that the waiver 

20 is necessary to support— 

21 ‘‘(A) a contingency operation (as that term 

22 is defined in section 101(a)(13) of title 10); 

23 ‘‘(B) operations to prevent or respond to a 

24 transportation security incident (as defined in 

25 section 70101(6) of title 46); 


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

3 human health or safety or to the marine environ4 ment; or 

5 ‘‘(D) an operation in response to a natural 

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

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

10 ‘‘(4) LIMITATION ON APPLICATION.—This sub11 section does not apply to an undefinitized contractual 

12 action for the purchase of initial spares. 

13 ‘‘(d) INCLUSION OF NONURGENT REQUIREMENTS.— 

14 Requirements for spare parts and support equipment that 

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

16 an undefinitized contractual action by the Coast Guard for 

17 spare parts and support equipment that are needed on an 

18 urgent basis unless the Commandant approves such inclu19 sion as being— 

20 ‘‘(1) good business practice; and 

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

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

23 undefinitized contractual action under which performance 

24 has begun may not be modified unless the Commandant ap25 proves such modification as being— 


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1 ‘‘(1) good business practice; and 

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

3 ‘‘(f) ALLOWABLE PROFIT.—The Commandant shall en4 sure that the profit allowed on an undefinitized contractual 

5 action for which the final price is negotiated after a sub6 stantial portion of the performance required is completed 

7 reflects— 

8 ‘‘(1) the possible reduced cost risk of the con9 tractor with respect to costs incurred during perform10 ance of the contract before the final price is nego11 tiated; and 

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

13 respect to costs incurred during performance of the re14 maining portion of the contract. 

15 ‘‘(g) DEFINITIONS.—In this section: 

16 ‘‘(1) UNDEFINITIZED CONTRACTUAL ACTION.— 

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

18 subparagraph (B), the term ‘undefinitized con19 tractual action’ means a new procurement action 

20 entered into by the Coast Guard for which the 

21 contractual terms, specifications, or price are not 

22 agreed upon before performance is begun under 

23 the action. 


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1 ‘‘(B) EXCLUSION.—The term ‘undefinitized 

2 contractual action’ does not include contractual 

3 actions with respect to— 

4 ‘‘(i) foreign military sales; 

5 ‘‘(ii) purchases in an amount not in 

6 excess of the amount of the simplified acqui7 sition threshold; or 

8 ‘‘(iii) special access programs. 

9 ‘‘(2) QUALIFYING PROPOSAL.—The term ‘quali10 fying proposal’ means a proposal that contains suffi11 cient information to enable complete and meaningful 

12 audits of the information contained in the proposal as 

13 determined by the contracting officer. 

14 ‘‘SUBCHAPTER 2—IMPROVED ACQUISITION PROCESS AND

15 PROCEDURES

16 ‘‘§ 571. Identification of major system acquisitions 

17 ‘‘(a) IN GENERAL.— 

18 ‘‘(1) SUPPORT MECHANISMS.—The Commandant 

19 shall develop and implement mechanisms to support 

20 the establishment of mature and stable operational re21 quirements for acquisitions under this subchapter. 

22 ‘‘(2) MISSION ANALYSIS; AFFORDABILITY ASSESS23 MENT.—The Commandant may not initiate a Level 1 

24 or Level 2 acquisition project or program until the 

25 Commandant— 


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1 ‘‘(A) completes a mission analysis that— 

2 ‘‘(i) identifies any gaps in capability; 

3 and 

4 ‘‘(ii) develops a clear mission need; 

5 and 

6 ‘‘(B) prepares a preliminary affordability 

7 assessment for the project or program. 

8 ‘‘(b) ELEMENTS.— 

9 ‘‘(1) REQUIREMENTS.—The mechanisms required 

10 by subsection (a) shall ensure the implementation of 

11 a formal process for the development of a mission12 needs statement, concept-of-operations document, ca13 pability development plan, and resource proposal for 

14 the initial project or program funding, and shall en15 sure the project or program is included in the Coast 

16 Guard Capital Investment Plan. 

17 ‘‘(2) ASSESSMENT OF TRADE-OFFS.—In con18 ducting an affordability assessment under subsection 

19 (a)(2)(B), the Commandant shall develop and imple20 ment mechanisms to ensure that trade-offs among 

21 cost, schedule, and performance are considered in the 

22 establishment of preliminary operational require23 ments for development and production of new assets 

24 and capabilities for Level 1 and Level 2 acquisitions 

25 projects and programs. 


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1 ‘‘(c) HUMAN RESOURCE CAPITAL PLANNING.—The 

2 Commandant shall develop staffing predictions, define 

3 human capital performance initiatives, and identify pre4 liminary training needs for any such project or program. 

5 ‘‘(d) DHS ACQUISITION APPROVAL.—A Level 1 or 

6 Level 2 acquisition project or program may not be imple7 mented unless it is approved by the Department of Home8 land Security Acquisition Review Board or the Joint Re9 view Board. 

10 ‘‘§ 572. Acquisition 

11 ‘‘(a) IN GENERAL.—The Commandant may not estab12 lish a Level 1 or Level 2 acquisition project or program 

13 approved under section 571(d) until the Commandant— 

14 ‘‘(1) clearly defines the operational requirements 

15 for the project or program; 

16 ‘‘(2) establishes the feasibility of alternatives; 

17 ‘‘(3) develops an acquisition project or program 

18 baseline; 

19 ‘‘(4) produces a life-cycle cost estimate; and 

20 ‘‘(5) assesses the relative merits of alternatives to 

21 determine a preferred solution in accordance with the 

22 requirements of this section. 

23 ‘‘(b) ANALYSIS OF ALTERNATIVES.— 

24 ‘‘(1) IN GENERAL.—The Commandant shall con25 duct an analysis of alternatives for the asset or capaVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00132 Fmt 6652 Sfmt 6203 E:\BILLS\S1194.RS S1194

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1 bility to be acquired in an analyze and select phase 

2 of the acquisition process. 

3 ‘‘(2) REQUIREMENTS.—The analysis of alter4 natives shall be conducted by a federally funded re5 search and development center, a qualified entity of 

6 the Department of Defense, or a similar independent 

7 third party entity that has appropriate acquisition 

8 expertise and has no substantial financial interest in 

9 any part of the acquisition project or program that 

10 is the subject of the analysis. At a minimum, the 

11 analysis of alternatives shall include— 

12 ‘‘(A) an assessment of the technical matu13 rity, and technical and other risks; 

14 ‘‘(B) an examination of capability, inter15 operability, and other disadvantages; 

16 ‘‘(C) an evaluation of whether different 

17 combinations or quantities of specific assets or 

18 capabilities could meet the Coast Guard’s overall 

19 performance needs; 

20 ‘‘(D) a discussion of key assumptions and 

21 variables, and sensitivity to change in such as22 sumptions and variables; 

23 ‘‘(E) when an alternative is an existing 

24 asset or prototype, an evaluation of relevant safe25 ty and performance records and costs; 


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1 ‘‘(F) a calculation of life-cycle costs includ2 ing— 

3 ‘‘(i) an examination of likely research 

4 and development costs and the levels of un5 certainty associated with such estimated 

6 costs; 

7 ‘‘(ii) an examination of likely produc8 tion and deployment costs and levels of un9 certainty associated with such estimated 

10 costs; 

11 ‘‘(iii) an examination of likely oper12 ating and support costs and the levels of 

13 uncertainty associated with such estimated 

14 costs; 

15 ‘‘(iv) if they are likely to be signifi16 cant, an examination of likely disposal costs 

17 and the levels of uncertainty associated with 

18 such estimated costs; and 

19 ‘‘(v) such additional measures as the 

20 Commandant or the Secretary of Homeland 

21 Security determines to be necessary for ap22 propriate evaluation of the asset; and 

23 ‘‘(G) the business case for each viable alter24 native. 

25 ‘‘(c) TEST AND EVALUATION MASTER PLAN.— 


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

2 acquisition project or program the Chief Acquisition 

3 Officer shall approve a test and evaluation master 

4 plan specific to the acquisition project or program for 

5 the capability, asset, or subsystems of the capability 

6 or asset and intended to minimize technical, cost, and 

7 schedule risk as early as practicable in the develop8 ment of the project or program. 

9 ‘‘(2) TEST AND EVALUATION STRATEGY.—The 

10 master plan shall— 

11 ‘‘(A) set forth an integrated test and evalua12 tion strategy that will verify that capability-level 

13 or asset-level and subsystem-level design and de14 velopment, including performance and 

15 supportability, have been sufficiently proven be16 fore the capability, asset, or subsystem of the ca17 pability or asset is approved for production; and 

18 ‘‘(B) require that adequate developmental 

19 tests and evaluations and operational tests and 

20 evaluations established under subparagraph (A) 

21 are performed to inform production decisions. 

22 ‘‘(3) OTHER COMPONENTS OF THE MASTER

23 PLAN.—At a minimum, the master plan shall iden24 tify— 


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1 ‘‘(A) the key performance parameters to be 

2 resolved through the integrated test and evalua3 tion strategy; 

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

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

9 ‘‘(D) modeling and simulation activities to 

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

12 ‘‘(E) early operational assessments to be 

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

15 ‘‘(F) operational test and evaluation phases; 

16 ‘‘(G) an estimate of the resources, including 

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

20 ‘‘(H) the Government entity or independent 

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

23 ‘‘(4) UPDATE.—The Chief Acquisition Officer 

24 shall approve an updated master plan whenever there 


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1 is a revision to project or program test and evalua2 tion strategy, scope, or phasing. 

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

4 ‘‘(A) proceed beyond that phase of the ac5 quisition process that entails approving the sup6 porting acquisition of a capability or asset before 

7 the master plan is approved by the Chief Acqui8 sition Officer; or 

9 ‘‘(B) award any production contract for a 

10 capability, asset, or subsystem for which a mas11 ter plan is required under this subsection before 

12 the master plan is approved by the Chief Acqui13 sition Officer. 

14 ‘‘(d) LIFE-CYCLE COST ESTIMATES.— 

15 ‘‘(1) IN GENERAL.—The Commandant shall im16 plement mechanisms to ensure the development and 

17 regular updating of life-cycle cost estimates for each 

18 Level 1 or Level 2 acquisition to ensure that these es19 timates are considered in decisions to develop or 

20 produce new or enhanced capabilities and assets. 

21 ‘‘(2) TYPES OF ESTIMATES.—In addition to life22 cycle cost estimates that may be developed by acquisi23 tion program offices, the Commandant shall require 

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1 oped for each Level 1 or Level 2 acquisition project 

2 or program. 

3 ‘‘(3) REQUIRED UPDATES.—For each Level 1 or 

4 Level 2 acquisition project or program the Com5 mandant shall require that life-cycle cost estimates 

6 shall be updated before each milestone decision is con7 cluded and the project or program enters a new ac8 quisition phase. 

9 ‘‘(e) DHS ACQUISITION APPROVAL.—A project or pro10 gram may not enter the obtain phase under section 573 un11 less the Department of Homeland Security Acquisition Re12 view Board or the Joint Review Board (or other entity to 

13 which such responsibility is delegated by the Secretary of 

14 Homeland Security) has approved the analysis of alter15 natives for the project. The Joint Review Board may also 

16 approve the low rates initial production quantity for the 

17 project or program if such an initial production quantity 

18 is planned by the acquisition project or program and 

19 deemed appropriate by the Joint Review Board. 

20 ‘‘§ 573. Preliminary development and demonstration 

21 ‘‘(a) IN GENERAL.—The Commandant shall ensure 

22 that developmental test and evaluation, operational test and 

23 evaluation, life cycle cost estimates, and the development 

24 and demonstration requirements are met to confirm that 

25 the projects or programs meet the requirements described 


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1 in the mission-needs statement and the operational-require2 ments document and the following development and dem3 onstration objectives: 

4 ‘‘(1) To demonstrate that the most promising de5 sign, manufacturing, and production solution is based 

6 upon a stable, producible, and cost-effective product 

7 design. 

8 ‘‘(2) To ensure that the product capabilities meet 

9 contract specifications, acceptable operational per10 formance requirements, and system security require11 ments. 

12 ‘‘(3) To ensure that the product design is mature 

13 enough to commit to full production and deployment. 

14 ‘‘(b) TESTS AND EVALUATIONS.— 

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

17 tests and evaluations and operational tests and eval18 uations of a capability or asset and the subsystems of 

19 the capability or asset for which a master plan has 

20 been prepared under section 572(c)(1). 

21 ‘‘(2) USE OF THIRD PARTIES.—The Com22 mandant shall ensure that the Coast Guard uses inde23 pendent third parties with expertise in testing and 

24 evaluating the capabilities or assets and the sub25 systems of the capabilities or assets being acquired to 


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1 conduct developmental tests and evaluations and 

2 operational tests and evaluations whenever the Coast 

3 Guard lacks the capability to conduct the tests and 

4 evaluations required by a master plan. 

5 ‘‘(3) COMMUNICATION OF SAFETY CONCERNS.— 

6 The Commandant shall require that safety concerns 

7 identified during developmental or operational tests 

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

10 assets and subsystems of capabilities or assets to be 

11 acquired by the Coast Guard shall be communicated 

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

13 after the completion of the test or assessment event or 

14 activity that identified the safety concern, to the pro15 gram manager for the capability or asset and the sub16 systems concerned and to the Chief Acquisition Offi17 cer. 

18 ‘‘(4) ASSET ALREADY IN LOW, INITIAL, OR FULL19 RATE PRODUCTION.—If operational test and evalua20 tion on a capability or asset already in low, initial, 

21 or full-rate production identifies a safety concern 

22 with the capability or asset or any subsystems of the 

23 capability or asset not previously identified during 

24 developmental or operational test and evaluation, the 

25 Commandant shall— 


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1 ‘‘(A) notify the program manager and the 

2 Chief Acquisition Officer of the safety concern as 

3 soon as practicable, but not later than 30 days 

4 after the completion of the test and evaluation 

5 event or activity that identified the safety con6 cern; and 

7 ‘‘(B) notify the Chief Acquisition Officer 

8 and include in such notification— 

9 ‘‘(i) an explanation of the actions that 

10 will be taken to correct or mitigate the safe11 ty concern in all capabilities or assets and 

12 subsystems of the capabilities or assets yet 

13 to be produced, and the date by which those 

14 actions will be taken; 

15 ‘‘(ii) an explanation of the actions that 

16 will be taken to correct or mitigate the safe17 ty concern in previously produced capabili18 ties or assets and subsystems of the capabili19 ties or assets, and the date by which those 

20 actions will be taken; and 

21 ‘‘(iii) an assessment of the adequacy of 

22 current funding to correct or mitigate the 

23 safety concern in capabilities or assets and 

24 subsystems of the capabilities or assets and 


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1 in previously produced capabilities or assets 

2 and subsystems. 

3 ‘‘(c) TECHNICAL CERTIFICATION.— 

4 ‘‘(1) IN GENERAL.—The Commandant shall en5 sure that any Level 1 or Level 2 acquisition project 

6 or program is certified by the technical authority of 

7 the Coast Guard after review by an independent third 

8 party with capabilities in the mission area, asset, or 

9 particular asset component. 

10 ‘‘(2) TEMPEST TESTING.—The Commandant 

11 shall— 

12 ‘‘(A) cause all electronics on all aircraft, 

13 surface, and shore assets that require TEMPEST 

14 certification and that are delivered after the date 

15 of enactment of the Coast Guard Authorization 

16 Act for Fiscal Years 2010 and 2011 to be tested 

17 in accordance with master plan standards and 

18 communications security standards by an inde19 pendent third party that is authorized by the 

20 Federal Government to perform such testing; and 

21 ‘‘(B) certify that the assets meet all applica22 ble TEMPEST requirements. 

23 ‘‘(3) VESSEL CLASSIFICATION.—The Com24 mandant shall cause each cutter, other than the Na25 tional Security Cutter, acquired by the Coast Guard 


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1 and delivered after the date of enactment of the Coast 

2 Guard Authorization Act for Fiscal Years 2010 and 

3 2011 is to be classed by the American Bureau of 

4 Shipping before final acceptance. 

5 ‘‘(d) ACQUISITION DECISION.—The Commandant may 

6 not proceed to full scale production, deployment, and sup7 port of a Level 1 or Level 2 acquisition project or program 

8 unless the Department of Homeland Security Acquisition 

9 Review Board has verified that the delivered asset or system 

10 meets the project or program performance and cost goals. 

11 ‘‘§ 574. Acquisition, production, deployment, and sup12 port 

13 ‘‘(a) IN GENERAL.—The Commandant shall— 

14 ‘‘(1) ensure there is a stable and efficient produc15 tion and support capability to develop an asset or 

16 system; 

17 ‘‘(2) conduct follow on testing to confirm and 

18 monitor performance and correct deficiencies; and 

19 ‘‘(3) conduct acceptance tests and trails upon the 

20 delivery of each asset or system to ensure the delivered 

21 asset or system achieves full operational capability. 

22 ‘‘(b) ELEMENTS.—The Commandant shall— 

23 ‘‘(1) execute the productions contracts; 


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1 ‘‘(2) ensure the delivered products meet oper2 ational cost and schedules requirements established in 

3 the acquisition program baseline; 

4 ‘‘(3) validate manpower and training require5 ments to meet system needs to operate, maintain, sup6 port, and instruct the system; and 

7 ‘‘(4) prepare a project or program transition 

8 plan to enter into programmatic sustainment, oper9 ations, and support. 

10 ‘‘§ 575. Acquisition program baseline breach 

11 ‘‘(a) IN GENERAL.—The Commandant shall submit a 

12 report to the appropriate congressional committees as soon 

13 as possible, but not later than 30 days, after the Chief Ac14 quisition Officer of the Coast Guard becomes aware of the 

15 breach of an acquisition program baseline for any Level 1 

16 or Level 2 acquisition program, by— 

17 ‘‘(1) a likely cost overrun greater than 15 per18 cent of the acquisition program baseline for that indi19 vidual capability or asset or a class of capabilities or 

20 assets; 

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

22 delivery schedule for any individual capability or 

23 asset or class of capabilities or assets; or 

24 ‘‘(3) an anticipated failure for any individual 

25 capability or asset or class of capabilities or assets to 


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1 satisfy any key performance threshold or parameter 

2 under the acquisition program baseline. 

3 ‘‘(b) CONTENT.—The report submitted under sub4 section (a) shall include— 

5 ‘‘(1) a detailed description of the breach and an 

6 explanation of its cause; 

7 ‘‘(2) the projected impact to performance, cost, 

8 and schedule; 

9 ‘‘(3) an updated acquisition program baseline 

10 and the complete history of changes to the original ac11 quisition program baseline; 

12 ‘‘(4) the updated acquisition schedule and the 

13 complete history of changes to the original schedule; 

14 ‘‘(5) a full life-cycle cost analysis for the capa15 bility or asset or class of capabilities or assets; 

16 ‘‘(6) a remediation plan identifying corrective 

17 actions and any resulting issues or risks; and 

18 ‘‘(7) a description of how progress in the remedi19 ation plan will be measured and monitored. 

20 ‘‘(c) SUBSTANTIAL VARIANCES IN COSTS OR SCHED21 ULE.—If a likely cost overrun is greater than 25 percent 

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

23 and schedule described in the acquisition program baseline 

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

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


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1 report a written certification, with a supporting expla2 nation, that— 

3 ‘‘(1) the capability or asset or capability or asset 

4 class to be acquired under the project or program is 

5 essential to the accomplishment of Coast Guard mis6 sions; 

7 ‘‘(2) there are no alternatives to such capability 

8 or asset or capability or asset class which will provide 

9 equal or greater capability in both a more cost-effec10 tive and timely manner; 

11 ‘‘(3) the new acquisition schedule and estimates 

12 for total acquisition cost are reasonable; and 

13 ‘‘(4) the management structure for the acquisi14 tion program is adequate to manage and control per15 formance, cost, and schedule. 

16 ‘‘SUBCHAPTER 3—DEFINITIONS

17 ‘‘§ 581. Definitions 

18 ‘‘In this chapter: 

19 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT20 TEES.—The term ‘appropriate congressional commit21 tees’ means the House of Representatives Committee 

22 on Transportation and Infrastructure and the Senate 

23 Committee on Commerce, Science, and Transpor24 tation. 


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1 ‘‘(2) CHIEF ACQUISITION OFFICER.—The term 

2 ‘Chief Acquisition Officer’ means the officer appointed 

3 under section 55 of this title. 

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

5 means the Commandant of the Coast Guard. 

6 ‘‘(4) JOINT REVIEW BOARD.—The term ‘Joint 

7 Review Board’ means the Department of Homeland 

8 Security’s Investment Review Board, Joint Require9 ments Council, or other entity within the Department 

10 designated by the Secretary as the Joint Review 

11 Board for purposes of this chapter. 

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

13 acquisition’ means— 

14 ‘‘(A) an acquisition by the Coast Guard— 

15 ‘‘(i) the estimated life-cycle costs of 

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

17 ‘‘(ii) the estimated total acquisition 

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

19 ‘‘(B) any acquisition that the Chief Acquisi20 tion Officer of the Coast Guard determines to 

21 have a special interest— 

22 ‘‘(i) due to— 

23 ‘‘(I) the experimental or tech24 nically immature nature of the asset; 


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1 ‘‘(II) the technological complexity 

2 of the asset; 

3 ‘‘(III) the commitment of re4 sources; or 

5 ‘‘(IV) the nature of the capability 

6 or set of capabilities to be achieved; or 

7 ‘‘(ii) because such acquisition is a joint 

8 acquisition. 

9 ‘‘(6) LEVEL 2 ACQUISITION.—The term ‘Level 2 

10 acquisition’ means an acquisition by the Coast 

11 Guard— 

12 ‘‘(A) the estimated life-cycle costs of which 

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

14 greater than $300,000,000; or 

15 ‘‘(B) the estimated total acquisition costs of 

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

17 but greater than $100,000,000. 

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

19 cost’ means all costs for development, procurement, 

20 construction, and operations and support for a par21 ticular capability or asset, without regard to funding 

22 source or management control. 

23 ‘‘(8) SAFETY CONCERN.—The term ‘safety con24 cern’ means any hazard associated with a capability 

25 or asset or a subsystem of a capability or asset that 


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

2 typical Coast Guard user in testing, maintaining, re3 pairing, or operating the capability, asset, or sub4 system or any hazard associated with the capability, 

5 asset, or subsystem that is likely to cause major dam6 age to the capability, asset, or subsystem during the 

7 course of its normal operation by a typical Coast 

8 Guard user.’’. 

9 (b) CONFORMING AMENDMENT.—The part analysis for 

10 part I of title 14, United States Code, is amended by insert11 ing after the item relating to chapter 13 the following: 

‘‘15. Acquisitions ...............................................................................................561’’. 

12 SEC. 503. REPORT AND GUIDANCE ON EXCESS PASS13 THROUGH CHARGES. 

14 (a) COMPTROLLER GENERAL REPORT.— 

15 (1) IN GENERAL.—Not later than 180 days after 

16 the date of enactment of this Act, the Comptroller 

17 General shall issue a report on pass-through charges 

18 on contracts, subcontracts, delivery orders, and task 

19 orders that were executed by a lead systems integrator 

20 under contract to the Coast Guard during the 3 full 

21 calendar years preceding the date of enactment of this 

22 Act. 

23 (2) MATTERS COVERED.—The report under this 

24 subsection— 


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1 (A) shall assess the extent to which the 

2 Coast Guard paid excessive pass-through charges 

3 to contractors or subcontractors that provided 

4 little or no value to the performance of a con5 tract or the production of a procured asset; and 

6 (B) shall assess the extent to which the 

7 Coast Guard has been particularly vulnerable to 

8 excessive pass-through charges on any specific 

9 category of contracts or by any specific category 

10 of contractors. 

11 (b) GUIDANCE REQUIRED.— 

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

13 the date of enactment of this Act, the Commandant 

14 shall prescribe guidance to ensure that pass-through 

15 charges on contracts, subcontracts, delivery orders, 

16 and task orders that are executed with a private enti17 ty acting as a lead systems integrator by or on behalf 

18 of the Coast Guard are not excessive in relation to the 

19 cost of work performed by the relevant contractor or 

20 subcontractor. The guidance shall, at a minimum— 

21 (A) set forth clear standards for deter22 mining when no, or negligible, value has been 

23 added to a contract by a contractor or subcon24 tractor; 


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1 (B) set forth procedures for preventing the 

2 payment by the Government of excessive pass3 through charges; and 

4 (C) identify any exceptions determined by 

5 the Commandant to be in the best interest of the 

6 Government. 

7 (2) SCOPE OF GUIDANCE.—The guidance pre8 scribed under this subsection— 

9 (A) shall not apply to any firm, fixed-price 

10 contract or subcontract, delivery order, or task 

11 order that is— 

12 (i) awarded on the basis of adequate 

13 price competition, as determined by the 

14 Commandant; or 

15 (ii) for the acquisition of a commercial 

16 item, as defined in section 4(12) of the Of17 fice of Federal Procurement Policy Act (41 

18 U.S.C. 403(12)); and 

19 (B) may include such additional exceptions 

20 as the Commandant determines to be necessary 

21 in the interest of the United States. 

22 (c) EXCESSIVE PASS-THROUGH CHARGE DEFINED.— 

23 In this section the term ‘‘excessive pass-through charge’’, 

24 with respect to a contractor or subcontractor that adds no, 

25 or negligible, value to a contract or subcontract, means a 


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1 charge to the Government by the contractor or subcontractor 

2 that is for overhead or profit on work performed by a lower3 tier contractor or subcontractor, other than reasonable 

4 charges for the direct costs of managing lower-tier contrac5 tors and subcontracts and overhead and profit based on 

6 such direct costs. 

7 (d) APPLICATION OF GUIDANCE.—The guidance pre8 scribed under this section shall apply to contracts awarded 

9 to a private entity acting as a lead systems integrator by 

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

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

12 TITLE VI—SHIPPING AND 

13 NAVIGATION 

14 SEC. 601. TECHNICAL AMENDMENTS TO CHAPTER 313 OF 

15 TITLE 46, UNITED STATES CODE. 

16 (a) IN GENERAL.—Chapter 313 of title 46, United 

17 States Code, is amended— 

18 (1) by striking ‘‘of Transportation’’ in sections 

19 31302, 31306, 31321, 31330, and 31343 each place it 

20 appears; 

21 (2) by striking ‘‘and’’ after the semicolon in sec22 tion 31301(5)(F); 

23 (3) by striking ‘‘office.’’ in section 31301(6) and 

24 inserting ‘‘office; and’’; and 


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1 (4) by adding at the end of section 31301 the fol2 lowing: 

3 ‘‘(7) ‘Secretary’ means the Secretary of the De4 partment of Homeland Security, unless otherwise 

5 noted.’’. 

6 (b) SECRETARY AS MORTGAGEE.—Section 31308 of 

7 such title is amended by striking ‘‘When the Secretary of 

8 Commerce or Transportation is a mortgagee under this 

9 chapter, the Secretary’’ and inserting ‘‘The Secretary of 

10 Commerce or Transportation, as a mortgagee under this 

11 chapter,’’. 

12 (c) SECRETARY OF TRANSPORTATION.—Section 

13 31329(d) of such title is amended by striking ‘‘Secretary.’’ 

14 and inserting ‘‘Secretary of Transportation.’’. 

15 (d) MORTGAGEE.— 

16 (1) Section 31330(a)(1) of such title, as amended 

17 by subsection (a)(1) of this section, is amended— 

18 (A) by inserting ‘‘or’’ after the semicolon in 

19 subparagraph (B); 

20 (B) by striking ‘‘Secretary; or’’ in subpara21 graph (C) and inserting ‘‘Secretary.’’; and 

22 (C) by striking subparagraph (D). 

23 (2) Section 31330(a)(2) is amended— 

24 (A) by inserting ‘‘or’’ after the semicolon in 

25 subparagraph (B); 


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1 (B) by striking ‘‘faith; or’’ in subparagraph 

2 (C) and inserting ‘‘faith.’’; and 

3 (C) by striking subparagraph (D). 

4 SEC. 602. CLARIFICATION OF RULEMAKING AUTHORITY. 

5 (a) IN GENERAL.—Chapter 701 of title 46, United 

6 States Code, is amended by adding at the end the following: 

7 ‘‘§ 70122. Regulations 

8 ‘‘Unless otherwise provided, the Secretary may issue 

9 regulations necessary to implement this chapter.’’. 

10 (b) CLERICAL AMENDMENT.—The table of contents for 

11 chapter 701 of such title is amended by adding at the end 

12 the following new item: 

‘‘70122. Regulations.’’. 

13 SEC. 603. COAST GUARD TO MAINTAIN LORAN–C NAVIGA14 TION SYSTEM. 

15 (a) IN GENERAL.—The Secretary of Transportation 

16 shall maintain the LORAN–C navigation system until such 

17 time as the Secretary is authorized by statute, explicitly 

18 referencing this section, to cease operating the system but 

19 expedite modernization projects necessary for transition to 

20 eLORAN technology. 

21 (b) AUTHORIZATION OF APPROPRIATIONS.—There are 

22 authorized to be appropriated to the Secretary of Transpor23 tation, in addition to funds authorized under section 101 

24 of this Act for the Coast Guard for operation of the 

25 LORAN–C system and for the transition to eLORAN, for 


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1 capital expenses related to the LORAN–C infrastructure 

2 and to modernize and upgrade the LORAN infrastructure 

3 to provide eLORAN services, $37,000,000 for each of fiscal 

4 years 2010 and 2011. The Secretary of Transportation may 

5 transfer from the Federal Aviation Administration and 

6 other agencies of the Department of Transportation such 

7 funds as may be necessary to reimburse the Coast Guard 

8 for related expenses. 

9 (c) REPORT ON TRANSITION TO ELORAN TECH10 NOLOGY.—No later than 6 months after the date of enact11 ment of this Act, the Secretary of Transportation, in co12 operation with the Secretary of the Department in which 

13 the Coast Guard is operating, shall provide a report to the 

14 Senate Committee on Commerce, Science, and Transpor15 tation and the House of Representatives Committee on 

16 Transportation and Infrastructure a detailed 5-year plan 

17 for transition to eLORAN technology that includes— 

18 (1) the timetable, milestones, projects, and future 

19 funding required to complete the transition from 

20 LORAN–C to eLORAN technology for provision of 

21 positioning, navigation, and timing services; and 

22 (2) the benefits of eLORAN for national trans23 portation safety, security, and economic growth. 


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1 SEC. 604. ICEBREAKERS. 

2 (a) ANALYSES.—Not later than 90 days after the date 

3 of enactment of this Act or the date of completion of the 

4 ongoing High Latitude Study to assess polar ice-breaking 

5 mission requirements, which ever occurs later, the Com6 mandant of the Coast Guard shall— 

7 (1) conduct a comparative cost-benefit analysis 

8 of— 

9 (A) rebuilding, renovating, or improving 

10 the existing fleet of polar icebreakers for oper11 ation by the Coast Guard, 

12 (B) constructing new polar icebreakers for 

13 operation by the Coast Guard, and 

14 (C) any combination of the activities de15 scribed in subparagraphs (A) and (B), to carry 

16 out the missions of the Coast Guard; and 

17 (2) conduct an analysis of the impact on mission 

18 capacity and the ability of the United States to 

19 maintain a presence in the polar regions through the 

20 year 2020 if recapitalization of the polar icebreaker 

21 fleet, either by constructing new polar icebreakers or 

22 rebuilding, renovating, or improving the existing fleet 

23 of polar icebreakers, is not fully funded. 

24 (b) REPORTS TO CONGRESS.— 

25 (1) Not later than 90 days after the date of en26 actment of this Act or the date of completion of the 


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1 ongoing High Latitude Study to assess polar ice2 breaking mission requirements, which ever occurs 

3 later, the Commandant of the Coast Guard shall sub4 mit a report containing the results of the study, to5 gether with recommendations the Commandant deems 

6 appropriate under section 93(a)(24) of title 14, 

7 United States Code, to the Senate Committee on Com8 merce, Science, and Transportation and the House of 

9 Representatives Committee on Transportation and 

10 Infrastructure. 

11 (2) Not later than 1 year after the date of enact12 ment of this Act, the Commandant shall submit re13 ports containing the results of the analyses required 

14 under paragraphs (1) and (2) of subsection (a), to15 gether with recommendations the Commandant deems 

16 appropriate under section 93(a)(24) of title 14, 

17 United States Code, to the Senate Committee on Com18 merce, Science, and Transportation and the House of 

19 Representatives Committee on Transportation and 

20 Infrastructure. 

21 SEC. 605. VESSEL SIZE LIMITS. 

22 (a) LENGTH, TONNAGE, AND HORSEPOWER.—Section 

23 12113(d)(2) of title 46, United States Code, is amended— 

24 (1) by inserting ‘‘and’’ after the semicolon at the 

25 end of subparagraph (A)(i); 


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1 (2) by striking ‘‘and’’ at the end of subpara2 graph (A)(ii); 

3 (3) by striking subparagraph (A)(iii); 

4 (4) by striking the period at the end of subpara5 graph (B) and inserting ‘‘; or’’; and 

6 (5) by inserting at the end the following: 

7 ‘‘(C) the vessel is either a rebuilt vessel or 

8 a replacement vessel under section 208(g) of the 

9 American Fisheries Act (title II of division C of 

10 Public Law 105–277; 112 Stat. 2681–627) and 

11 is eligible for a fishery endorsement under this 

12 section.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) VESSEL REBUILDING AND REPLACEMENT.— 

15 Section 208(g) of the American Fisheries Act (title II 

16 of division C of Public Law 105–277; 112 Stat. 2681– 

17 627) is amended to read as follows: 

18 ‘‘(g) VESSEL REBUILDING AND REPLACEMENT.— 

19 ‘‘(1) IN GENERAL.— 

20 ‘‘(A) REBUILD OR REPLACE.—Notwith21 standing any limitation to the contrary on re22 placing, rebuilding, or lengthening vessels or 

23 transferring permits or licenses to a replacement 

24 vessel contained in sections 679.2 and 679.4 of 

25 title 50, Code of Federal Regulations, as in effect 


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1 on the date of enactment of the Coast Guard Au2 thorization Act for Fiscal Years 2010 and 2011 

3 and except as provided in paragraph (4), the 

4 owner of a vessel eligible under subsection (a), 

5 (b), (c), (d), or (e) (other than paragraph (21)), 

6 in order to improve vessel safety and operational 

7 efficiencies (including fuel efficiency), may re8 build or replace that vessel (including fuel effi9 ciency) with a vessel documented with a fishery 

10 endorsement under section 12113 of title 46, 

11 United States Code. 

12 ‘‘(B) SAME REQUIREMENTS.—The rebuilt or 

13 replacement vessel shall be eligible in the same 

14 manner and subject to the same restrictions and 

15 limitations under such subsection as the vessel 

16 being rebuilt or replaced. 

17 ‘‘(C) TRANSFER OF PERMITS AND LI18 CENSES.—Each fishing permit and license held 

19 by the owner of a vessel or vessels to be rebuilt 

20 or replaced under subparagraph (A) shall be 

21 transferred to the rebuilt or replacement vessel. 

22 ‘‘(2) RECOMMENDATIONS OF NORTH PACIFIC

23 COUNCIL.—The North Pacific Council may rec24 ommend for approval by the Secretary such conserva25 tion and management measures, including size limits 


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1 and measures to control fishing capacity, in accord2 ance with the Magnuson-Stevens Act as it considers 

3 necessary to ensure that this subsection does not di4 minish the effectiveness of fishery management plans 

5 of the Bering Sea and Aleutian Islands Management 

6 Area or the Gulf of Alaska. 

7 ‘‘(3) SPECIAL RULE FOR REPLACEMENT OF CER8 TAIN VESSELS.— 

9 ‘‘(A) IN GENERAL.—Notwithstanding the re10 quirements of subsections (b)(2), (c)(1), and 

11 (c)(2) of section 12113 of title 46, United States 

12 Code, a vessel that is eligible under subsection 

13 (a), (b), (c), (d), or (e) (other than paragraph 

14 (21)) and that qualifies to be documented with 

15 a fishery endorsement pursuant to section 203(g) 

16 or 213(g) may be replaced with a replacement 

17 vessel under paragraph (1) if the vessel that is 

18 replaced is validly documented with a fishery en19 dorsement pursuant to section 203(g) or 213(g) 

20 before the replacement vessel is documented with 

21 a fishery endorsement under section 12113 of 

22 title 46, United States Code. 

23 ‘‘(B) APPLICABILITY.—A replacement vessel 

24 under subparagraph (A) and its owner and 

25 mortgagee are subject to the same limitations 


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1 under section 203(g) or 213(g) that are applica2 ble to the vessel that has been replaced and its 

3 owner and mortgagee. 

4 ‘‘(4) SPECIAL RULES FOR CERTAIN CATCHER

5 VESSELS.— 

6 ‘‘(A) IN GENERAL.—A replacement for a 

7 covered vessel described in subparagraph (B) is 

8 prohibited from harvesting fish in any fishery 

9 (except for the Pacific whiting fishery) managed 

10 under the authority of any regional fishery man11 agement council (other than the North Pacific 

12 Council) established under section 302(a) of the 

13 Magnuson-Stevens Act. 

14 ‘‘(B) COVERED VESSELS.—A covered vessel 

15 referred to in subparagraph (A) is— 

16 ‘‘(i) a vessel eligible under subsection 

17 (a), (b), or (c) that is replaced under para18 graph (1); or 

19 ‘‘(ii) a vessel eligible under subsection 

20 (a), (b), or (c) that is rebuilt to increase its 

21 registered length, gross tonnage, or shaft 

22 horsepower. 

23 ‘‘(5) LIMITATION ON FISHERY ENDORSEMENTS.— 

24 Any vessel that is replaced under this subsection shall 

25 thereafter not be eligible for a fishery endorsement 


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1 under section 12113 of title 46, United States Code, 

2 unless that vessel is also a replacement vessel de3 scribed in paragraph (1). 

4 ‘‘(6) GULF OF ALASKA LIMITATION.—Notwith5 standing paragraph (1), the Secretary shall prohibit 

6 from participation in the groundfish fisheries of the 

7 Gulf of Alaska any vessel that is rebuilt or replaced 

8 under this subsection and that exceeds the maximum 

9 length overall specified on the license that authorizes 

10 fishing for groundfish pursuant to the license limita11 tion program under part 679 of title 50, Code of Fed12 eral Regulations, as in effect on the date of enactment 

13 of the Coast Guard Authorization Act for Fiscal Years 

14 2010 and 2011. 

15 ‘‘(7) AUTHORITY OF PACIFIC COUNCIL.—Nothing 

16 in this section shall be construed to diminish or other17 wise affect the authority of the Pacific Council to rec18 ommend to the Secretary conservation and manage19 ment measures to protect fisheries under its jurisdic20 tion (including the Pacific whiting fishery) and par21 ticipants in such fisheries from adverse impacts 

22 caused by this Act.’’. 

23 (2) EXEMPTION OF CERTAIN VESSELS.—Section 

24 203(g) of the American Fisheries Act (title II of diviVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00162 Fmt 6652 Sfmt 6203 E:\BILLS\S1194.RS S1194

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1 sion C of Public Law 105–277; 112 Stat. 2681–620) 

2 is amended— 

3 (A) by inserting ‘‘and’’ after ‘‘(United 

4 States official number 651041)’’; 

5 (B) by striking ‘‘, NORTHERN TRAV6 ELER (United States official number 635986), 

7 and NORTHERN VOYAGER (United States of8 ficial number 637398) (or a replacement vessel 

9 for the NORTHERN VOYAGER that complies 

10 with paragraphs (2), (5), and (6) of section 

11 208(g) of this Act)’’; and 

12 (C) by striking ‘‘, in the case of the 

13 NORTHERN’’ and all that follows through 

14 ‘‘PHOENIX,’’. 

15 (3) FISHERY COOPERATIVE EXIT PROVISIONS.— 

16 Section 210(b) of the American Fisheries Act (title II 

17 of division C of Public Law 105–277; 112 Stat. 2681– 

18 629) is amended— 

19 (A) by moving the matter beginning with 

20 ‘‘the Secretary shall’’ in paragraph (1) 2 ems to 

21 the right; and 

22 (B) by adding at the end the following: 

23 ‘‘(7) FISHERY COOPERATIVE EXIT PROVISIONS.— 

24 ‘‘(A) FISHING ALLOWANCE DETERMINA25 TION.—For purposes of determining the aggreVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00163 Fmt 6652 Sfmt 6203 E:\BILLS\S1194.RS S1194

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1 gate percentage of directed fishing allowances 

2 under paragraph (1), when a catcher vessel is re3 moved from the directed pollock fishery, the fish4 ery allowance for pollock for the vessel being re5 moved— 

6 ‘‘(i) shall be based on the catch history 

7 determination for the vessel made pursuant 

8 to section 679.62 of title 50, Code of Federal 

9 Regulations, as in effect on the date of en10 actment of the Coast Guard Authorization 

11 Act of 2008; and 

12 ‘‘(ii) shall be assigned, for all purposes 

13 under this title, in the manner specified by 

14 the owner of the vessel being removed to any 

15 other catcher vessel or among other catcher 

16 vessels participating in the fishery coopera17 tive if such vessel or vessels remain in the 

18 fishery cooperative for at least one year 

19 after the date on which the vessel being re20 moved leaves the directed pollock fishery. 

21 ‘‘(B) ELIGIBILITY FOR FISHERY ENDORSE22 MENT.—Except as provided in subparagraph 

23 (C), a vessel that is removed pursuant to this 

24 paragraph shall be permanently ineligible for a 

25 fishery endorsement, and any claim (including 


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1 relating to catch history) associated with such 

2 vessel that could qualify any owner of such vessel 

3 for any permit to participate in any fishery 

4 within the exclusive economic zone of the United 

5 States shall be extinguished, unless such removed 

6 vessel is thereafter designated to replace a vessel 

7 to be removed pursuant to this paragraph. 

8 ‘‘(C) LIMITATIONS ON STATUTORY CON9 STRUCTION.—Nothing in this paragraph shall be 

10 construed— 

11 ‘‘(i) to make the vessels AJ (United 

12 States official number 905625), DONA 

13 MARTITA (United States official number 

14 651751), NORDIC EXPLORER (United 

15 States official number 678234), and 

16 PROVIDIAN (United States official num17 ber 1062183) ineligible for a fishery en18 dorsement or any permit necessary to par19 ticipate in any fishery under the authority 

20 of the New England Fishery Management 

21 Council or the Mid-Atlantic Fishery Man22 agement Council established, respectively, 

23 under subparagraphs (A) and (B) of section 

24 302(a)(1) of the Magnuson-Stevens Act; or 


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1 ‘‘(ii) to allow the vessels referred to in 

2 clause (i) to participate in any fishery 

3 under the authority of the Councils referred 

4 to in clause (i) in any manner that is not 

5 consistent with the fishery management 

6 plan for the fishery developed by the Coun7 cils under section 303 of the Magnuson-Ste8 vens Act.’’. 

9 SEC. 606. PHASEOUT OF VESSELS SUPPORTING OIL AND 

10 GAS DEVELOPMENT. 

11 Section 705 of the Security and Accountability for 

12 Every Port Act of 2006 (Public Law 109–347; 120 Stat. 

13 1945) is amended to read as follows: 

14 ‘‘SEC. 705. PHASEOUT OF VESSELS SUPPORTING OIL AND 

15 GAS DEVELOPMENT. 

16 ‘‘(a) IN GENERAL.—Notwithstanding section 12111(d) 

17 of title 46, United States Code, a foreign-flag vessel may 

18 be chartered by, or on behalf of, a lessee to be employed 

19 for the setting, relocation, or recovery of anchors or other 

20 mooring equipment of a mobile offshore drilling unit that 

21 is located over the Outer Continental Shelf (as defined in 

22 section 2(a) of the Outer Continental Shelf Lands Act (43 

23 U.S.C. 1331(a)) for operations in support of exploration, 

24 or flow-testing and stimulation of wells, for offshore mineral 


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1 or energy resources in the Beaufort Sea or the Chukchi Sea 

2 adjacent to Alaska— 

3 ‘‘(1) until December 31, 2012, if the Secretary of 

4 Transportation determines, after publishing notice in 

5 the Federal Register, that insufficient vessels docu6 mented under section 12111(d) of title 46, United 

7 States Code, are reasonably available and suitable for 

8 these support operations and all such reasonably 

9 available and suitable vessels are employed in support 

10 of such operations; and 

11 ‘‘(2) for an additional 2-year period beginning 

12 January 1, 2013, if the Secretary of Transportation 

13 determines— 

14 ‘‘(A) that, as of December 31, 2012, the les15 see has entered into a binding agreement to em16 ploy a suitable vessel or vessels to be documented 

17 under such section 12111(d) in sufficient num18 bers and with sufficient suitability to replace 

19 any foreign-flag vessel or vessels operating under 

20 this section; and 

21 ‘‘(B) after publishing notice in the Federal 

22 Register, that insufficient vessels documented 

23 under such section 12111(d) are reasonably 

24 available and suitable for these support oper25 ations and all such reasonably available and 


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1 suitable vessels are employed in support of such 

2 operations. 

3 ‘‘(b) LESSEE DEFINED.—In this section, the term ‘les4 see’ means the holder of a lease (defined in section 2(c) of 

5 the Outer Continental Shelf Lands Act (43 U.S.C. 1331(c)), 

6 who has entered into a binding agreement to employ a suit7 able vessel documented or to be documented under section 

8 12111(d) of title 46, United States Code. 

9 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in subsection 

10 (a) shall be construed to authorize employment in the coast11 wise trade of a vessel that does not meet the requirements 

12 set forth in section 12112 of title 46, United States Code.’’. 

13 TITLE VII—VESSEL CONVEYANCE 

14 SEC. 701. SHORT TITLE. 

15 This title may be cited as the ‘‘Vessel Conveyance Act’’. 

16 SEC. 702. CONVEYANCE OF COAST GUARD VESSELS FOR 

17 PUBLIC PURPOSES. 

18 (a) IN GENERAL.—Whenever the transfer of ownership 

19 of a Coast Guard vessel to an eligible entity for use for edu20 cational, cultural, historical, charitable, recreational, or 

21 other public purposes is authorized by law, the Coast Guard 

22 shall transfer the vessel to the General Services Administra23 tion for conveyance to the eligible entity. 

24 (b) CONDITIONS OF CONVEYANCE.—The General Serv25 ices Administration may not convey a vessel to an eligible 


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1 entity as authorized by law unless the eligible entity 

2 agrees— 

3 (1) to provide the documentation needed by the 

4 General Services Administration to process a request 

5 for aircraft or vessels under section 102.37.225 of title 

6 41, Code of Federal Regulations; 

7 (2) to comply with the special terms, conditions, 

8 and restrictions imposed on aircraft and vessels under 

9 section 102–37.460 of such title; 

10 (3) to make the vessel available to the United 

11 States Government if it is needed for use by the Com12 mandant of the Coast Guard in time of war or a na13 tional emergency; and 

14 (4) to hold the United States Government harm15 less for any claims arising from exposure to haz16 ardous materials, including asbestos and poly17 chlorinated biphenyls, after conveyance of the vessel, 

18 except for claims arising from use of the vessel by the 

19 United States Government under paragraph (3). 

20 (c) ELIGIBLE ENTITY DEFINED.—In this section, the 

21 term ‘‘eligible entity’’ means a State or local government, 

22 nonprofit corporation, educational agency, community de23 velopment organization, or other entity that agrees to com24 ply with the conditions established under this section. 


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1 TITLE VIII—OIL POLLUTION 

2 PREVENTION 

3 SEC. 801. RULEMAKINGS. 

4 (a) STATUS REPORT.— 

5 (1) IN GENERAL.—Not later than 90 days after 

6 the date of enactment of this Act, the Secretary shall 

7 provide a report to the Senate Committee on Com8 merce, Science, and Transportation and the House of 

9 Representatives Committee on Transportation and 

10 Infrastructure on the status of all Coast Guard 

11 rulemakings required (but for which no final rule has 

12 been issued as of the date of enactment of this Act) 

13 under section 311 of the Federal Water Pollution Con14 trol Act (33 U.S.C. 1321). 

15 (2) INFORMATION REQUIRED.—The Secretary 

16 shall include in the report required in paragraph 

17 (1)— 

18 (A) a detailed explanation with respect to 

19 each such rulemaking as to— 

20 (i) what steps have been completed; 

21 (ii) what areas remain to be addressed; 

22 and 

23 (iii) the cause of any delays; and 

24 (B) the date by which a final rule may rea25 sonably be expected to be issued. 


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1 (b) FINAL RULES.—The Secretary shall issue a final 

2 rule in each pending rulemaking described in subsection (a) 

3 as soon as practicable, but in no event later than 18 months 

4 after the date of enactment of this Act. 

5 (c) TOWING VESSELS.—No later than 1 year after the 

6 date of enactment of this Act, the Secretary shall issue a 

7 notice of proposed rulemaking regarding inspection require8 ments for towing vessels required under section 3306(j) of 

9 title 46, United States Code. The Secretary shall issue a 

10 final rule pursuant to that rulemaking no later than 2 

11 years after the date of enactment of this Act. 

12 SEC. 802. OIL SPILL RESPONSE CAPABILITY. 

13 (a) REDUCTION OF OIL SPILL RISK IN BUZZARDS

14 BAY.—Section 8502(g) of title 46, United States Code, is 

15 amended by adding at the end thereof the following: 

16 ‘‘(3) In any area of Buzzards Bay, Massachusetts, 

17 where a single-hull tank vessel carrying 5,000 or more bar18 rels of oil or other hazardous material is required to be 

19 under the direction and control of a pilot licensed under 

20 section 7101 of this title, the pilot may not be a member 

21 of the crew of that vessel and shall be a pilot licensed by 

22 the Commonwealth of Massachusetts who is operating under 

23 a Federal license.’’. 

24 (b) REPORTING.—The Secretary shall transmit an an25 nual report to the Senate Committee on Commerce, Science, 


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1 and Transportation and the House of Representatives Com2 mittee on Resources on the extent to which tank vessels in 

3 Buzzards Bay, Massachusetts, are using routes rec4 ommended by the Coast Guard. 

5 SEC. 803. OIL TRANSFERS FROM VESSELS. 

6 (a) REGULATIONS.—Within 1 year after the date of 

7 enactment of this Act, the Secretary shall promulgate regu8 lations to reduce the risks of oil spills in operations involv9 ing the transfer of oil from or to a tank vessel. The regula10 tions— 

11 (1) shall focus on operations that have the high12 est risks of discharge, including operations at night 

13 and in inclement weather; 

14 (2) shall consider— 

15 (A) requirements for the use of equipment, 

16 such as putting booms in place for transfers, 

17 safety, and environmental impacts; 

18 (B) operational procedures such as man19 ning standards, communications protocols, and 

20 restrictions on operations in high-risk areas; or 

21 (C) both such requirements and operational 

22 procedures; and 

23 (3) shall take into account the safety of personnel 

24 and effectiveness of available procedures and equip25 ment for preventing or mitigating transfer spills. 


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1 (b) APPLICATION WITH STATE LAWS.—The regulations 

2 promulgated under subsection (a) do not preclude the en3 forcement of any State law or regulation the requirements 

4 of which are at least as stringent as requirements under 

5 the regulations (as determined by the Secretary) that— 

6 (1) applies in State waters; 

7 (2) does not conflict with, or interfere with the 

8 enforcement of, requirements and operational proce9 dures under the regulations; and 

10 (3) has been enacted or promulgated before the 

11 date of enactment of this Act. 

12 SEC. 804. IMPROVEMENTS TO REDUCE HUMAN ERROR AND 

13 NEAR MISS INCIDENTS. 

14 (a) REPORT.—Within 1 year after the date of enact15 ment of this Act, the Secretary shall transmit a report to 

16 the Senate Committee on Commerce, Science, and Trans17 portation and the House Committee on Transportation and 

18 Infrastructure that, using available data— 

19 (1) identifies the types of human errors that, 

20 combined, account for over 50 percent of all oils spills 

21 involving vessels that have been caused by human 

22 error in the past 10 years; 

23 (2) identifies the most frequent types of near24 miss oil spill incidents involving vessels such as colliVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00173 Fmt 6652 Sfmt 6203 E:\BILLS\S1194.RS S1194

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1 sions, allisions, groundings, and loss of propulsion in 

2 the past 10 years; 

3 (3) describes the extent to which there are gaps 

4 in the data with respect to the information required 

5 under paragraphs (1) and (2) and explains the rea6 son for those gaps; and 

7 (4) includes recommendations by the Secretary 

8 to address the identified types of errors and incidents 

9 to address any such gaps in the data. 

10 (b) MEASURES.—Based on the findings contained in 

11 the report required by subsection (a), the Secretary shall 

12 take appropriate action, both domestically and at the Inter13 national Maritime Organization, to reduce the risk of oil 

14 spills caused by human error. 

15 (c) CONFIDENTIALITY OF VOLUNTARILY SUBMITTED

16 INFORMATION.—The identity of a person making a vol17 untary disclosure under this section, and any information 

18 obtained from any such voluntary disclosure, shall be treat19 ed as confidential. 

20 (d) DISCOVERY OF VOLUNTARILY SUBMITTED INFOR21 MATION.— 

22 (1) IN GENERAL.—Except as provided in this 

23 subsection, a party in a judicial proceeding may not 

24 use discovery to obtain information or data collected 


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1 or received by the Secretary for use in the report re2 quired in subsection (a). 

3 (2) EXCEPTION.— 

4 (A) Notwithstanding paragraph (1), a court 

5 may allow discovery by a party in a judicial 

6 proceeding of information or data described in 

7 paragraph (1) if, after an in camera review of 

8 the information or data, the court decides that 

9 allowing such discovery is necessary to provide 

10 the party with sufficient information for the 

11 party to receive a fair trial. 

12 (B) When a court allows discovery in a ju13 dicial proceeding as permitted under this para14 graph, the court shall issue a protective order— 

15 (i) to limit the use of the information 

16 or data to the judicial proceeding; and 

17 (ii) to prohibit dissemination of the in18 formation or data to any person who does 

19 not need access to the information or data 

20 for the proceeding. 

21 (C) A court may allow information or data 

22 it has decided is discoverable under this para23 graph to be admitted into evidence in a judicial 

24 proceeding only if the court places the informa25 tion or data under seal to prevent the use of the 


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1 information or data for a purpose other than for 

2 the proceeding. 

3 (3) APPLICATION.—Paragraph (1) shall not 

4 apply to— 

5 (A) any disclosure made with actual knowl6 edge that the disclosure was false, inaccurate, or 

7 misleading; or 

8 (B) any disclosure made with reckless dis9 regard as to the truth or falsity of that disclo10 sure. 

11 SEC. 805. OLYMPIC COAST NATIONAL MARINE SANCTUARY. 

12 (a) OLYMPIC COAST NATIONAL MARINE SANCTUARY

13 AREA TO BE AVOIDED.—The Secretary of the Department 

14 in which the Coast Guard is operating and the Under Sec15 retary of Commerce for Oceans and Atmosphere shall revise 

16 the area to be avoided off the coast of the State of Wash17 ington so that restrictions apply to all vessels required to 

18 prepare a response plan pursuant to section 311(j) of the 

19 Federal Water Pollution Control Act (33 U.S.C. 1321(j)) 

20 (other than fishing or research vessels while engaged in fish21 ing or research within the area to be avoided). 

22 (b) EMERGENCY OIL SPILL DRILL.— 

23 (1) IN GENERAL.—In cooperation with the Sec24 retary of the Department in which the Coast Guard 

25 is operating, the Under Secretary of Commerce for 


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1 Oceans and Atmosphere shall conduct a Safe Seas oil 

2 spill drill in the Olympic Coast National Marine 

3 Sanctuary in fiscal year 2010. The Secretary of the 

4 Department in which the Coast Guard is operating 

5 and the Under Secretary of Commerce for Oceans and 

6 Atmosphere jointly shall coordinate with other Fed7 eral agencies, State, local, and tribal governmental 

8 entities, and other appropriate entities, in conducting 

9 this drill. 

10 (2) OTHER REQUIRED DRILLS.—Nothing in this 

11 subsection supersedes any Coast Guard requirement 

12 for conducting emergency oil spill drills in the Olym13 pic Coast National Marine Sanctuary. The Secretary 

14 of the Department in which the Coast Guard is oper15 ating shall consider conducting regular field exercises, 

16 such as National Preparedness for Response Exercise 

17 Program in other national marine sanctuaries. 

18 (3) AUTHORIZATION OF APPROPRIATIONS.— 

19 There are authorized to be appropriated to the Under 

20 Secretary of Commerce for Oceans and Atmosphere 

21 for fiscal year 2010 $700,000 to carry out this sub22 section. 

23 SEC. 806. PREVENTION OF SMALL OIL SPILLS. 

24 (a) IN GENERAL.—The Under Secretary of Commerce 

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1 retary of the Department in which the Coast Guard is oper2 ating and other appropriate agencies, shall establish an oil 

3 spill prevention and education program for small vessels. 

4 The program shall provide for assessment, outreach, and 

5 training and voluntary compliance activities to prevent 

6 and improve the effective response to oil spills from vessels 

7 and facilities not required to prepare a vessel response plan 

8 under the Federal Water Pollution Control Act (33 U.S.C. 

9 1251 et seq.), including recreational vessels, commercial 

10 fishing vessels, marinas, and aquaculture facilities. The 

11 Under Secretary may provide grants to sea grant colleges 

12 and institutes designated under section 207 of the National 

13 Sea Grant College Program Act (33 U.S.C. 1126) and to 

14 State agencies, tribal governments, and other appropriate 

15 entities to carry out— 

16 (1) regional assessments to quantify the source, 

17 incidence and volume of small oil spills, focusing ini18 tially on regions in the country where, in the past 10 

19 years, the incidence of such spills is estimated to be 

20 the highest; 

21 (2) voluntary, incentive-based clean marina pro22 grams that encourage marina operators, recreational 

23 boaters, and small commercial vessel operators to en24 gage in environmentally sound operating and mainte25 nance procedures and best management practices to 


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1 prevent or reduce pollution from oil spills and other 

2 sources; 

3 (3) cooperative oil spill prevention education 

4 programs that promote public understanding of the 

5 impacts of spilled oil and provide useful information 

6 and techniques to minimize pollution, including 

7 methods to remove oil and reduce oil contamination 

8 of bilge water, prevent accidental spills during main9 tenance and refueling and properly cleanup and dis10 pose of oil and hazardous substances; and 

11 (4) support for programs, including outreach 

12 and education to address derelict vessels and the 

13 threat of such vessels sinking and discharging oil and 

14 other hazardous substances, including outreach and 

15 education to involve efforts to the owners of such ves16 sels. 

17 (b) AUTHORIZATION OF APPROPRIATIONS.—There are 

18 authorized to be appropriated to the Under Secretary of 

19 Commerce for Oceans and Atmosphere to carry out this sec20 tion, $10,000,000 for each of fiscal years 2010 through 

21 2014. 

22 SEC. 807. IMPROVED COORDINATION WITH TRIBAL GOV23 ERNMENTS. 

24 (a) IN GENERAL.—Within 6 months after the date of 

25 enactment of this Act, the Secretary of the Department in 


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1 which the Coast Guard is operating shall complete the devel2 opment of a tribal consultation policy, which recognizes and 

3 protects to the maximum extent practicable tribal treaty 

4 rights and trust assets in order to improve the Coast 

5 Guard’s consultation and coordination with the tribal gov6 ernments of federally recognized Indian tribes with respect 

7 to oil spill prevention, preparedness, response and natural 

8 resource damage assessment. 

9 (b) INCLUSION OF TRIBAL GOVERNMENT.—The Sec10 retary of the Department in which the Coast Guard is oper11 ating shall ensure that, as soon as practicable after identi12 fying an oil spill that is likely to have a significant impact 

13 on natural or cultural resources owned or directly utilized 

14 by a federally recognized Indian tribe, the Coast Guard 

15 will— 

16 (1) ensure that representatives of the tribal gov17 ernment of the affected tribes are included as part of 

18 the incident command system established by the Coast 

19 Guard to respond to the spill; 

20 (2) share information about the oil spill with the 

21 tribal government of the affected tribe; and 

22 (3) to the extent practicable, involve tribal gov23 ernments in deciding how to respond to such spill. 

24 (c) COOPERATIVE ARRANGEMENTS.—The Coast Guard 

25 may enter into memoranda of agreement and associated 


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1 protocols with Indian tribal governments in order to estab2 lish cooperative arrangements for oil pollution prevention, 

3 preparedness, and response. Such memoranda may be en4 tered into prior to the development of the tribal consultation 

5 and coordination policy to provide Indian tribes grant and 

6 contract assistance. Such memoranda of agreement and as7 sociated protocols with Indian tribal governments may in8 clude— 

9 (1) arrangements for the assistance of the tribal 

10 government to participate in the development of the 

11 National Contingency Plan and local Area Contin12 gency Plans to the extent they affect tribal lands, cul13 tural and natural resources; 

14 (2) arrangements for the assistance of the tribal 

15 government to develop the capacity to implement the 

16 National Contingency Plan and local Area Contin17 gency Plans to the extent they affect tribal lands, cul18 tural and natural resources; 

19 (3) provisions on coordination in the event of a 

20 spill, including agreements that representatives of the 

21 tribal government will be included as part of the re22 gional response team co-chaired by the Coast Guard 

23 and the Environmental Protection Agency to establish 

24 policies for responding to oil spills; 


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1 (4) arrangements for the Coast Guard to provide 

2 training of tribal incident commanders and spill re3 sponders for oil spill preparedness and response; 

4 (5) demonstration projects to assist tribal gov5 ernments in building the capacity to protect tribal 

6 treaty rights and trust assets from oil spills; and 

7 (6) such additional measures the Coast Guard 

8 determines to be necessary for oil pollution preven9 tion, preparedness, and response. 

10 (d) FUNDING FOR TRIBAL PARTICIPATION.—Subject to 

11 the availability of appropriations, the Commandant of the 

12 Coast Guard shall provide assistance to participating tribal 

13 governments in order to facilitate the implementation of co14 operative arrangements under subsection (c) and ensure the 

15 participation of tribal governments in such arrangements. 

16 There are authorized to be appropriated to the Com17 mandant $500,000 for each of fiscal years 2010 through 

18 2014 to be used to carry out this section. 

19 SEC. 808. REPORT ON AVAILABILITY OF TECHNOLOGY TO 

20 DETECT THE LOSS OF OIL. 

21 Within 1 year after the date of enactment of this Act, 

22 the Secretary of the Department in which the Coast Guard 

23 is operating shall submit a report to the Senate Committee 

24 on Commerce, Science, and Transportation and the House 

25 of Representatives Committee on Energy and Commerce on 


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1 the availability, feasibility, and potential cost of technology 

2 to detect the loss of oil carried as cargo or as fuel on tank 

3 and non-tank vessels greater than 400 gross tons. 

4 SEC. 809. USE OF OIL SPILL LIABILITY TRUST FUND. 

5 (a) IN GENERAL.—Section 1012(a)(5) of the Oil Pollu6 tion Act of 1990 (33 U.S.C. 2712(a)(5)) is amended— 

7 (1) by redesignating subparagraphs (B) and (C) 

8 as subparagraphs (C) and (D), respectively; and 

9 (2) by inserting after subparagraph (A) the fol10 lowing: 

11 ‘‘(B) not more than $15,000,000 in each fis12 cal year shall be available to the Under Sec13 retary of Commerce for Oceans and Atmosphere 

14 for expenses incurred by, and activities related 

15 to, response and damage assessment capabilities 

16 of the National Oceanic and Atmospheric Ad17 ministration;’’. 

18 (b) AUDITS; ANNUAL REPORTS.—Section 1012 of the 

19 Oil Pollution Act of 1990 (33 U.S.C. 2712) is amended— 

20 (1) by striking subsection (g) and inserting the 

21 following: 

22 ‘‘(g) AUDITS.— 

23 ‘‘‘(1) IN GENERAL.—The Comptroller General of 

24 the United States shall conduct an audit, including 


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1 a detailed accounting of each disbursement from the 

2 Fund in excess of $500,000 that is— 

3 ‘‘(A) disbursed by the National Pollution 

4 Fund Center; and 

5 ‘‘(B) administered and managed by the re6 ceiving Federal agencies, including final pay7 ments made to agencies and contractors and, to 

8 the extent possible, subcontractors. 

9 ‘‘(2) FREQUENCY.—The audits shall be con10 ducted— 

11 ‘‘(A) at least once every 3 years after the 

12 date of enactment of the Coast Guard Authoriza13 tion Act for Fiscal Years 2010 and 2011 until 

14 2016; and 

15 ‘‘(B) at least once every 5 years after the 

16 last audit conducted under subparagraph (A). 

17 ‘‘(3) SUBMISSION OF RESULTS.—The Comp18 troller shall submit the results of each audit conducted 

19 under paragraph (1) to— 

20 ‘‘(A) the Senate Committee on Commerce, 

21 Science, and Transportation; 

22 ‘‘(B) the House of Representatives Com23 mittee on Transportation and Infrastructure; 

24 and 


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1 ‘‘(C) the Secretary or Administrator of each 

2 agency referred to in paragraph (1)(B).’’; and 

3 (2) by adding at the end thereof the following: 

4 ‘‘(h) REPORTS.— 

5 ‘‘(1) IN GENERAL.—Within one year after the 

6 date of enactment of the Coast Guard Authorization 

7 Act for Fiscal Years 2010 and 2011, and annually 

8 thereafter, the President, through the Secretary of the 

9 Department in which the Coast Guard is operating, 

10 shall— 

11 ‘‘(A) provide a report on disbursements for 

12 the preceding fiscal year from the Fund, regard13 less of whether those disbursements were subject 

14 to annual appropriations, to— 

15 ‘‘(i) the Senate Committee on Com16 merce, Science, and Transportation; and 

17 ‘‘(ii) the House of Representatives 

18 Committee on Transportation and Infra19 structure: and 

20 ‘‘(B) make the report available to the public 

21 on the National Pollution Funds Center Internet 

22 website. 

23 ‘‘(2) CONTENTS.—The report shall include— 


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1 ‘‘(A) a list of each disbursement of $250,000 

2 or more from the Fund during the preceding fis3 cal year; and 

4 ‘‘(B) a description of how each such use of 

5 the Fund meets the requirements of subsection 

6 (a). 

7 ‘‘(3) AGENCY RECORDKEEPING.—Each Federal 

8 agency that receives amounts from the Fund shall 

9 maintain records describing the purposes for which 

10 such funds were obligated or expended in such detail 

11 as the Secretary may require for purposes of the re12 port required under paragraph (1). 

13 ‘‘(i) AUTHORIZATIONS.—There are authorized to be 

14 appropriated such sums as may be necessary to carry out 

15 subsections (g) and (h).’’. 

16 SEC. 810. INTERNATIONAL EFFORTS ON ENFORCEMENT. 

17 The Secretary, in consultation with the heads of other 

18 appropriate Federal agencies, shall ensure that the Coast 

19 Guard pursues stronger enforcement in the International 

20 Maritime Organization of agreements related to oil dis21 charges, including joint enforcement operations, training, 

22 and stronger compliance mechanisms. 


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1 SEC. 811. HIGHER VOLUME PORT AREA REGULATORY DEFI2 NITION CHANGE. 

3 (a) IN GENERAL.—Within 30 days after the date of 

4 enactment of this Act, notwithstanding subchapter 5 of title 

5 5, United States Code, the Commandant shall modify the 

6 definition of the term ‘‘higher volume port area’’ in section 

7 155.1020 of the Coast Guard regulations (33 C.F.R. 

8 155.1020) by striking ‘‘Port Angeles, WA’’ in paragraph 

9 (13) of that section and inserting ‘‘Cape Flattery, WA’’ 

10 without initiating a rulemaking proceeding. 

11 (b) EMERGENCY RESPONSE PLAN REVIEWS.—Within 

12 5 years after the date of enactment of this Act, the Coast 

13 Guard shall complete its review of any changes to emer14 gency response plans under the Federal Water Pollution 

15 Control Act (33 U.S.C. 1251 et seq.) resulting from the 

16 modification of the higher volume port area definition re17 quired by subsection (a). 

18 SEC. 812. TUG ESCORTS FOR LADEN OIL TANKERS. 

19 (a) IN GENERAL.—Within 1 year after the date of en20 actment of this Act, the Secretary of State, in consultation 

21 with the Commandant, shall enter into negotiations with 

22 the Government of Canada to ensure that tugboat escorts 

23 are required for all tank ships with a capacity over 40,000 

24 deadweight tons in the Strait of Juan de Fuca, Strait of 

25 Georgia, and in Haro Strait. The Commandant shall con26 sult with the State of Washington and affected tribal govVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00187 Fmt 6652 Sfmt 6203 E:\BILLS\S1194.RS S1194

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1 ernments during negotiations with the Government of Can2 ada. 

3 (b) DUAL TUG ESCORTS.—Within 1 year after the 

4 date of enactment of this Act, the Secretary of the depart5 ment in which the Coast Guard is operating shall transmit 

6 a report to the Senate Committee on Commerce, Science, 

7 and Transportation and the House of Representatives Com8 mittee on Transportation and Infrastructure on the costs 

9 and benefits to require escort, by at least two towing vessels, 

10 for vessels over 5,000 gross tons transporting oil in bulk 

11 in Rosario Strait and Puget Sound, Washington (including 

12 those portions of the Strait of Juan de Fuca east of Port 

13 Angeles, Haro Strait, and the Strait of Georgia subject to 

14 United States jurisdiction). 

15 SEC. 813. EXTENSION OF FINANCIAL RESPONSIBILITY. 

16 Section 1016(a) of the Oil Pollution Act of 1990 (33 

17 U.S.C. 2716(a)) is amended— 

18 (1) by striking ‘‘or’’ after the semicolon in para19 graph (1); 

20 (2) by inserting ‘‘or’’ after the semicolon in 

21 paragraph (2); and 

22 (3) by inserting after paragraph (2) the fol23 lowing: 

24 ‘‘(3) any tank vessel over 100 gross tons (except 

25 a non-self-propelled vessel that does not carry oil as 


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1 cargo) using any place subject to the jurisdiction of 

2 the United States;’’. 

3 SEC. 814. OIL SPILL LIABILITY TRUST FUND INVESTMENT 

4 AMOUNT. 

5 Within 30 days after the date of enactment of this Act, 

6 the Secretary of the Treasury shall increase the amount in7 vested in income producing securities under section 5006(b) 

8 of the Oil Pollution Act of 1990 (33 U.S.C. 2736(b)) by 

9 $12,851,340. 

10 SEC. 815. LIABILITY FOR USE OF SINGLE-HULL VESSELS. 

11 Section 1001(32)(A) of the Oil Pollution Act of 1990 

12 (33 U.S.C. 2701(32)(A)) is amended by inserting ‘‘In the 

13 case of a vessel, the term ‘responsible party’ also includes 

14 the owner of oil being transported in a tank vessel with 

15 a single hull after December 31, 2010 (other than a vessel 

16 described in section 3703a(b)(3) of title 46, United States 

17 Code).’’ after ‘‘vessel.’’. 

18 TITLE IX—MISCELLANEOUS 

19 PROVISIONS 

20 SEC. 901. HOMEPORTING OF THE BIGELOW. 

21 (a) IN GENERAL.—Within 90 days after the date of 

22 enactment of this Act, the Administrator of the National 

23 Oceanic and Atmospheric Administration shall submit a 

24 progress report to the Senate Committee on Commerce, 

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1 tives Committee on Natural Resources, on the Administra2 tion’s determination of a homeport for the FSV HENRY 

3 B BIGELOW. 

4 (b) FACTORS CONSIDERED.—In making its decision, 

5 the Administration shall give special consideration to— 

6 (1) the use of existing agency-owned infrastruc7 ture; 

8 (2) the proximity of the proposed homeport to 

9 Federal research facilities and programs that directly 

10 benefit from the vessel’s research, including the Ad11 ministration’s Northeast Fisheries Science Center; 

12 (3) the proximity of the proposed homeport to 

13 non-federal fisheries research partners and vessel and 

14 equipment repair and support infrastructure; 

15 (4) the prior homeport location of the FSV AL16 BATROSS, which the FSV HENRY B BIGELOW is 

17 replacing; and 

18 (5) the historical and cultural significance of 

19 having a Federal fisheries research vessel presence in 

20 Woods Hole for over 100 years. 

21 (c) FINAL DETERMINATION.— 

22 (1) ADVANCE NOTICE.—Not less than 45 days be23 fore implementing a final decision with respect to the 

24 homeport for the FSV HENRY B BIGELOW. the Ad25 ministrator shall— 


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1 (A) notify the Committees of the Adminis2 tration’s proposed final decision; and 

3 (B) provide an explanation to the Commit4 tees of the rationale for the homeport selected in 

5 the proposed final decision that addresses the fac6 tors described in subsection (b). 

7 (2) FINAL DECISION.—The National Oceanic and 

8 Atmospheric Administration shall make a final deci9 sion on the homeport for the FSV HENRY B 

10 BIGELOW no later than December 31, 2009. 

11 SEC. 902. VESSEL DETERMINATION. 

12 (a) VESSELS DEEMED TO BE NEW VESSELS.—The 

13 vessel with United States official number 981472 and the 

14 vessel with United States official number 988333 shall each 

15 be deemed to be a new vessel effective upon the date of deliv16 ery after January 1, 2008, from a privately-owned United 

17 States shipyard if no encumbrances are on record with the 

18 United States Coast Guard at the time of the issuance of 

19 the new vessel certificate of documentation for such vessel 

20 (b) SAFETY INSPECTION.—Each vessel shall be subject 

21 to the vessel safety and inspection requirements of title 46, 

22 United States Code, applicable to any such vessel as of the 

23 day before the date of enactment of this Act. 


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1 SEC. 903. CONVEYANCE OF THE PRESQUE ISLE LIGHT STA2 TION FRESNEL LENS TO PRESQUE ISLE 

3 TOWNSHIP, MICHIGAN. 

4 (a) CONVEYANCE OF LENS AUTHORIZED.— 

5 (1) TRANSFER OF POSSESSION.—Notwith6 standing any other provision of law, the Com7 mandant of the Coast Guard may transfer to Presque 

8 Isle Township, a township in Presque Isle County in 

9 the State of Michigan (in this section referred to as 

10 the ‘‘Township’’), possession of the Historic Fresnel 

11 Lens (in this section referred to as the ‘‘Lens’’) from 

12 the Presque Isle Light Station Lighthouse, Michigan 

13 (in this section referred to as the ‘‘Lighthouse’’). 

14 (2) CONDITION.—As a condition of the transfer 

15 of possession authorized by paragraph (1), the Town16 ship shall, not later than one year after the date of 

17 transfer, install the Lens in the Lighthouse for the 

18 purpose of operating the Lens and Lighthouse as a 

19 Class I private aid to navigation pursuant to section 

20 85 of title 14, United States Code, and the applicable 

21 regulations under that section. 

22 (3) CONVEYANCE OF LENS.—Upon the certifi23 cation of the Commandant that the Township has in24 stalled the Lens in the Lighthouse and is able to oper25 ate the Lens and Lighthouse as a private aid to navi26 gation as required by paragraph (2), the ComVerDate Nov 24 2008 01:40 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00192 Fmt 6652 Sfmt 6203 E:\BILLS\S1194.RS S1194

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1 mandant shall convey to the Township all right, title, 

2 and interest of the United States in and to the Lens. 

3 (4) CESSATION OF UNITED STATES OPERATIONS

4 OF AIDS TO NAVIGATION AT LIGHTHOUSE.—Upon the 

5 making of the certification described in paragraph 

6 (3), all active Federal aids to navigation located at 

7 the Lighthouse shall cease to be operated and main8 tained by the United States. 

9 (b) REVERSION.— 

10 (1) REVERSION FOR FAILURE OF AID TO NAVIGA11 TION.—If the Township does not comply with the con12 dition set forth in subsection (a)(2) within the time 

13 specified in that subsection, the Township shall, ex14 cept as provided in paragraph (2), return the Lens to 

15 the Commandant at no cost to the United States and 

16 under such conditions as the Commandant may re17 quire. 

18 (2) EXCEPTION FOR HISTORICAL PRESERVA19 TION.—Notwithstanding the lack of compliance of the 

20 Township as described in paragraph (1), the Town21 ship may retain possession of the Lens for installa22 tion as an artifact in, at, or near the Lighthouse 

23 upon the approval of the Commandant. The Lens 

24 shall be retained by the Township under this para25 graph under such conditions for the preservation and 


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1 conservation of the Lens as the Commandant shall 

2 specify for purposes of this paragraph. Installation of 

3 the Lens under this paragraph shall occur, if at all, 

4 not later than two years after the date of the transfer 

5 of the Lens to the Township under subsection (a)(1). 

6 (3) REVERSION FOR FAILURE OF HISTORICAL

7 PRESERVATION.—If retention of the Lens by the 

8 Township is authorized under paragraph (2) and the 

9 Township does not install the Lens in accordance 

10 with that paragraph within the time specified in that 

11 paragraph, the Township shall return the lens to the 

12 Coast Guard at no cost to the United States and 

13 under such conditions as the Commandant may re14 quire. 

15 (c) CONVEYANCE OF ADDITIONAL PERSONAL PROP16 ERTY.— 

17 (1) TRANSFER AND CONVEYANCE OF PERSONAL

18 PROPERTY.—Notwithstanding any other provision of 

19 law, the Commandant may transfer to the Township 

20 any additional personal property of the United States 

21 related to the Lens that the Commandant considers 

22 appropriate for conveyance under this section. If the 

23 Commandant conveys the Lens to the Township under 

24 subsection (a)(3), the Commandant may convey to the 


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1 Township any personal property previously trans2 ferred to the Township under this subsection. 

3 (2) REVERSION.—If the Lens is returned to the 

4 Coast Guard pursuant to subsection (b), the Township 

5 shall return to the Coast Guard all personal property 

6 transferred or conveyed to the Township under this 

7 subsection except to the extent otherwise approved by 

8 the Commandant. 

9 (d) CONVEYANCE WITHOUT CONSIDERATION.—The 

10 conveyance of the Lens and any personal property under 

11 this section shall be without consideration. 

12 (e) DELIVERY OF PROPERTY.—The Commandant shall 

13 deliver property conveyed under this section— 

14 (1) at the place where such property is located 

15 on the date of the conveyance; 

16 (2) in condition on the date of conveyance; and 

17 (3) without cost to the United States. 

18 (f) MAINTENANCE OF PROPERTY.—As a condition of 

19 the conveyance of any property to the Township under this 

20 section, the Commandant shall enter into an agreement 

21 with the Township under which the Township agrees— 

22 (1) to operate the Lens as a Class I private aid 

23 to navigation under section 85 of title 14, United 

24 States Code, and application regulations under that 

25 section; and 


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1 (2) to hold the United States harmless for any 

2 claim arising with respect to personal property con3 veyed under this section. 

4 (g) LIMITATION ON FUTURE CONVEYANCE.—The in5 struments providing for the conveyance of property under 

6 this section shall— 

7 (1) require that any further conveyance of an in8 terest in such property may not be made without the 

9 advance approval of the Commandant; and 

10 (2) provide that, if the Commandant determines 

11 that an interest in such property was conveyed with12 out such approval— 

13 (A) all right, title, and interest in such 

14 property shall revert to the United States, and 

15 the United States shall have the right to imme16 diate possession of such property; and 

17 (B) the recipient of such property shall pay 

18 the United States for costs incurred by the 

19 United States in recovering such property. 

20 (h) ADDITIONAL TERMS AND CONDITIONS.—The Com21 mandant may require such additional terms and conditions 

22 in connection with the conveyances authorized by this sec23 tion as the Commandant considers appropriate to protect 

24 the interests of the United States. 


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1 SEC. 904. LAND CONVEYANCE, COAST GUARD PROPERTY IN 

2 MARQUETTE COUNTY, MICHIGAN, TO THE 

3 CITY OF MARQUETTE, MICHIGAN. 

4 (a) CONVEYANCE AUTHORIZED.—The Commandant of 

5 the Coast Guard may convey, without consideration, to the 

6 City of Marquette, Michigan (in this section referred to as 

7 the ‘‘City’’), all right, title, and interest of the United States 

8 in and to a parcel of real property, together with any im9 provements thereon, located in Marquette County, Michi10 gan, that is under the administrative control of the Coast 

11 Guard, consists of approximately 5.5 acres, and is com12 monly identified as Coast Guard Station Marquette and 

13 Lighthouse Point. 

14 (b) RETENTION OF CERTAIN EASEMENTS.—In con15 veying the property under subsection (a), the Commandant 

16 of the Coast Guard may retain such easements over the 

17 property as the Commandant considers appropriate for ac18 cess to aids to navigation. 

19 (c) LIMITATIONS.—The property to be conveyed by 

20 subsection (a) may not be conveyed under that subsection 

21 until— 

22 (1) the Coast Guard has relocated Coast Guard 

23 Station Marquette to a newly constructed station; 

24 (2) any environmental remediation required 

25 under Federal law with respect to the property has 

26 been completed; and 


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1 (3) the Commandant of the Coast Guard deter2 mines that retention of the property by the United 

3 States is not required to carry out Coast Guard mis4 sions or functions. 

5 (d) CONDITIONS OF TRANSFER.—All conditions placed 

6 within the deed of title of the property to be conveyed under 

7 subsection (a) shall be construed as covenants running with 

8 the land. 

9 (e) INAPPLICABILITY OF SCREENING OR OTHER RE10 QUIREMENTS.—The conveyance of property authorized by 

11 subsection (a) shall be made without regard to the following: 

12 (1) Section 2696 of title 10, United States Code. 

13 (2) Chapter 5 of title 40, United States Code. 

14 (3) Any other provision of law relating to the 

15 screening, evaluation, or administration of excess or 

16 surplus Federal property prior to conveyance by the 

17 Administrator of General Services. 

18 (f) EXPIRATION OF AUTHORITY.—The authority in 

19 subsection (a) shall expire on the date that is five years 

20 after the date of the enactment of this Act. 

21 (g) DESCRIPTION OF PROPERTY.—The exact acreage 

22 and legal description of the property to be conveyed under 

23 subsection (a) shall be determined by a survey satisfactory 

24 to the Commandant of the Coast Guard. The cost of the 

25 survey shall be borne by the United States. 


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1 (h) ADDITIONAL TERMS AND CONDITIONS.—The Com2 mandant of the Coast Guard may require such additional 

3 terms and conditions in connection with the conveyance au4 thorized by subsection (a) as the Commandant considers ap5 propriate to protect the interests of the United States. 

6 SEC. 905. LARGE OFFSHORE SUPPLY VESSELS. 

7 Within 1 year after the date of enactment of this Act, 

8 the Commandant of the Coast Guard shall submit a report 

9 to the Senate Committee on Commerce, Science, and Trans10 portation and the House of Representatives Committee on 

11 Transportation and Infrastructure on the design, inspec12 tion, certification, manning, operation, and credentialing 

13 requirements of offshore supply vessels greater than 500 

14 gross tons as measured under section 14502 of title 46, 

15 United States Code, or an alternate tonnage measured 

16 under section 14302 of that title as prescribed by the Sec17 retary under section 14104 of that title. In developing the 

18 report, the Commandant may request the participation of 

19 senior representatives of any other Federal department or 

20 agency, as appropriate, and shall consider all applicable 

21 provisions of United States law and international conven22 tions and agreements. 


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1 SEC. 906. CONVEYANCE OF DECOMMISSIONED COAST 

2 GUARD CUTTERS STORIS, IRIS, AND 

3 PLANETREE. 

4 (a) COAST GUARD CUTTER STORIS.—Upon the de5 commissioning of the Coast Guard Cutter STORIS, the 

6 Commandant of the Coast Guard shall convey, without con7 sideration, all right, title, and interest owned by the United 

8 States in the Coast Guard Cutter STORIS to the Storis 

9 Museum, a nonprofit entity of Juneau, Alaska, if the head 

10 of the Storis Museum agrees— 

11 (1) to use the vessel as a historic memorial and 

12 to make the United States Coast Guard Cutter 

13 STORIS available to the public as a museum and to 

14 work cooperatively with other museums to provide 

15 education and memorialize the maritime heritage of 

16 the United States Coast Guard Cutter STORIS and 

17 other maritime activities in Alaska, the Pacific 

18 Northwest, the Arctic Ocean, and adjacent oceans and 

19 seas; 

20 (2) not to use the vessel for commercial transpor21 tation purposes; 

22 (3) to make the vessel available to the United 

23 States Government if needed for use by the Com24 mandant in time of war or a national emergency or 

25 based on the critical needs of the United States Coast 

26 Guard; 


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1 (4) to hold the Government harmless for any 

2 claims arising from exposure to hazardous materials, 

3 including asbestos and polychlorinated biphenyls 

4 (PCBs), except for claims arising from the use of the 

5 United States Coast Guard Cutter STORIS by the 

6 Government; and 

7 (5) to any other conditions the Commandant 

8 considers appropriate. 

9 (b) COAST GUARD CUTTERS IRIS AND

10 PLANETREE.—Upon the decommissioning of the Coast 

11 Guard Cutters IRIS and PLANETREE, the Commandant 

12 of the Coast Guard shall convey, without consideration, all 

13 right, title, and interest owned by the United States in the 

14 Coast Guard Cutters IRIS and PLANETREE to The An15 chor Program, a nonprofit entity of Richmond, California, 

16 if the head of The Anchor Program agrees— 

17 (1) to use the vessels as job training sites pri18 marily in San Francisco Bay and Puget Sound, lead19 ing to employment in the merchant marine and asso20 ciated shore-side occupations, including to certified 

21 training programs combining classroom instruction 

22 and vocational training related to shipboard safety, 

23 personal survival, marine firefighting, basic marine 

24 engineering, basic seamanship skills, and marine 

25 steward skills, that is modeled after the Maritime 


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1 Training Program at the Tongue Point Job Corps 

2 Center in Astoria, Oregon; 

3 (2) not to use the vessel for commercial transpor4 tation purposes; 

5 (3) to make the vessels available to the United 

6 States Government if needed for use by the Com7 mandant in time of war or a national emergency or 

8 based on the critical needs of the United States Coast 

9 Guard; 

10 (4) to hold the United States Government harm11 less for any claims arising from exposure to haz12 ardous materials, including asbestos and poly13 chlorinated biphenyls, except for claims arising from 

14 the use of the United States Coast Guard Cutters 

15 IRIS or PLANETREE by the United States Govern16 ment; and 

17 (5) to any other conditions the Commandant 

18 considers appropriate. 

19 (c) OTHER EXCESS EQUIPMENT.—The Commandant 

20 of the Coast Guard may convey to the recipient of a vessel 

21 under this section any excess equipment or parts from other 

22 decommissioned Coast Guard vessels for use to enhance the 

23 vessel’s operability and function for purposes of a public 

24 museum and historical display. 


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1 SEC. 907. ACCESS FOR PERSONAL WATERCRAFT. 

2 (a) PERSONAL WATERCRAFT.— 

3 (1) IN GENERAL.—Notwithstanding any other 

4 provision of law, personal watercraft shall have equal 

5 access to the Atlantic Intracoastal Waterway as all 

6 other vessels and rafts permitted in the Waterway. 

7 (2) EFFECTIVE DATE.—Paragraph (1) shall take 

8 effect on the date that is 150 days after the date of 

9 enactment of this Act and shall remain in effect un10 less and until the Commandant of the United States 

11 Coast Guard, after public hearing, concludes that per12 sonal watercraft have an environmental impact on 

13 the Atlantic Intracoastal Waterway that is more dis14 parate than all other vessels and rafts permitted in 

15 the Waterway. 

16 (b) ESTABLISHMENT OF PERSONAL WATERCRAFT AT17 LANTIC INTRACOASTAL WATERWAY WORKING GROUP.— 

18 (1) IN GENERAL.—The Commandant of the 

19 United States Coast Guard, in consultation with the 

20 Director of the National Park Service, shall establish 

21 a 7-person Atlantic Intracoastal Waterway Working 

22 Group with representatives from the United States 

23 Coast Guard, National Park Service, State and local 

24 law enforcement agencies, representatives from the 

25 fishing, personal watercraft, and other parties with 

26 an interest in access to the Waterway. 


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1 (2) DUTIES OF WORKING GROUP.—Not later 

2 than 60 days after the date of enactment of this Act, 

3 the Working Group shall develop recommendations 

4 concerning reasonable requirements for granting per5 mits for access to the Waterway. The Commandant of 

6 the United States Coast Guard, in consultation with 

7 the Director of the National Park Service, shall issue 

8 requirements and specific guidelines for personal 

9 watercraft access to the Atlantic Intracoastal Water10 way within 150 days after the date of enactment of 

11 this Act, upon completion of the environmental assess12 ment by the Coast Guard. 

13 (c) SAFETY REGULATIONS.—Nothing in this section 

14 shall affect the authority of the United States Coast Guard 

15 to enforce safety regulations, or limit the ability of the Na16 tional Park Service or the Department of the Interior to 

17 ensure that watercraft observe all boating safety and other 

18 marine mammal protections. 

19 (d) DEADLINE FOR ENVIRONMENTAL ASSESSMENT.— 

20 The Commandant of the Coast Guard shall complete the en21 vironmental assessment under this section within 150 days 

22 after the date of enactment of this Act. 


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Calendar No. 193 

111TH CONGRESS 

1ST SESSION S. 1194 

[Report No. 111–95] 

A BILL 

To reauthorize the Coast Guard for fiscal years 

2010 and 2011, and for other purposes. 

OCTOBER 30, 2009 

Reported with an amendment 


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