II 

111TH CONGRESS 

1ST SESSION S. 1194 

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

other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 4, 2009 

Ms. CANTWELL (for herself, Ms. SNOWE, Mr. ROCKEFELLER, and Mrs. 

HUTCHISON) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation 

A BILL 

To reauthorize the Coast Guard for fiscal years 2010 and 

2011, and for other purposes. 

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’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 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. 


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Sec. 102. Authorized levels of military strength and training. 

TITLE II—ADMINISTRATION 

Sec. 201. Authority to distribute funds through grants, cooperative agreements, 

and contracts to maritime authorities and organizations. 

Sec. 202. Assistance to foreign governments and maritime authorities. 

Sec. 203. Cooperative agreements for industrial activities. 

Sec. 204. Defining Coast Guard vessels and aircraft. 

TITLE III—ORGANIZATION 

Sec. 301. Vice commandant; vice admirals. 

Sec. 302. Number and distribution of commissioned officers on the active duty 

promotion list. 

TITLE IV—PERSONNEL 

Sec. 401. Leave retention authority. 

Sec. 402. Legal assistance for Coast Guard reservists. 

Sec. 403. Reimbursement for certain medical related expenses. 

Sec. 404. Reserve commissioned warrant officer to lieutenant program. 

Sec. 405. Enhanced status quo officer promotion system. 

Sec. 406. Appointment of civilian Coast Guard judges. 

Sec. 407. Coast Guard participation in the Armed Forces Retirement Home 

system. 

TITLE V—ACQUISITION REFORM 

Sec. 501. Chief Acquisition Officer. 

Sec. 502. Acquisitions. 

‘‘CHAPTER 15—ACQUISITIONS 

‘‘SUBCHAPTER 1—GENERAL PROVISIONS

‘‘Sec. 

‘‘561. Acquisition directorate 

‘‘562. Senior acquisition leadership team 

‘‘563. Improvements in Coast Guard acquisition management 

‘‘564. Recognition of Coast Guard personnel for excellence in acquisition 

‘‘565. Prohibition on use of lead systems integrators 

‘‘566. Required contract terms 

‘‘567. Department of Defense consultation 

‘‘568. Undefinitized contractual actions 

‘‘SUBCHAPTER 2—IMPROVED ACQUISITION PROCESS AND PROCEDURES

‘‘Sec. 

‘‘571. Identification of major system acquisitions 

‘‘572. Acquisition 

‘‘573. Preliminary development and demonstration 

‘‘574. Acquisition, production, deployment, and support 

‘‘575. Acquisition program baseline breach 

‘‘SUBCHAPTER 3—DEFINITIONS

‘‘Sec. 

‘‘581. Definitions’’ 


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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 

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

16 Spill Liability Trust Fund to carry out the purposes 

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

18 1990, to remain available until expended; such funds 

19 appropriated for personnel compensation and beneVerDate Nov 24 2008 01:14 Jun 05, 2009 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1194.IS S1194

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1 fits and related costs of acquisition, construction, 

2 and improvements shall be available for procurement 

3 of services necessary to carry out the Integrated 

4 Deepwater Systems program. 

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

6 obligations otherwise chargeable to lapsed appropria7 tions for this purpose), payments under the Retired 

8 Serviceman’s Family Protection and Survivor Ben9 efit Plans, and payments for medical care of retired 

10 personnel and their dependents under chapter 55 of 

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

12 (4) For environmental compliance and restora13 tion functions under chapter 19 of title 14, United 

14 States Code, $13,198,000. 

15 (5) For research, development, test, and evalua16 tion programs related to maritime technology, 

17 $19,745,000. 

18 (6) For operation and maintenance of the Coast 

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

20 SEC. 102. AUTHORIZED LEVELS OF MILITARY STRENGTH 

21 AND TRAINING. 

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

23 authorized an end-of-year strength of active duty per24 sonnel of 49,954 as of September 30, 2010, and 52,452 

25 as of September 30, 2011. 


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1 (b) MILITARY TRAINING STUDENT LOADS.—The 

2 Coast Guard is authorized average military training stu3 dent 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 

8 fiscal year 2010 and 179 student years for fiscal 

9 year 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 fis15 cal 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 

22 amended by adding at the end the following: 

23 ‘‘(c) GRANTS TO INTERNATIONAL MARITIME ORGA24 NIZATIONS.—The Commandant may, after consultation 

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


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1 cooperative agreements, contracts, or other agreements 

2 with, international maritime organizations for the purpose 

3 of acquiring information or data about merchant vessel in4 spections, security, safety and environmental require5 ments, classification, and port state or flag state law en6 forcement or oversight.’’. 

7 SEC. 202. ASSISTANCE TO FOREIGN GOVERNMENTS AND 

8 MARITIME AUTHORITIES. 

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

10 amended by section 201, is further amended by adding 

11 at the end 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 re25 lated 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 

8 civilian and military personnel to the extent 

9 that those expenses relate to participation in an 

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

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

12 this subsection with a foreign country unless the 

13 Secretary of State approves the conduct of such ac14 tivity in that foreign country.’’. 

15 SEC. 203. COOPERATIVE AGREEMENTS FOR INDUSTRIAL 

16 ACTIVITIES. 

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

18 amended— 

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

23 ACTIVITIES.—Under this section, the Coast Guard indus24 trial activities may accept orders and enter into reimburs25 able agreements with establishments, agencies, and deVerDate Nov 24 2008 01:14 Jun 05, 2009 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1194.IS S1194

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1 partments of the Department of Defense and the Depart2 ment of Homeland 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 

10 title, 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 

16 more members of the Coast Guard are assigned and 

17 conducting Coast Guard missions.’’. 

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

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

20 the 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 

25 striking ‘‘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 

5 4 positions of importance and responsibility that shall be 

6 held by officers who— 

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

8 vice admiral, with the pay and allowances of that 

9 grade; 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 

16 duty above the grade of captain. The Commandant shall 

17 make recommendations for such appointments. 

18 ‘‘(b)(1) The appointment and the grade of vice admi19 ral shall be effective on the date the officer assumes that 

20 duty and, except as provided in paragraph (2) of this sub21 section or in section 51(d) of this title, shall terminate 

22 on the date 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 

4 that duty and terminating on the date before the 

5 day the officer assumes the subsequent duty, but not 

6 for more 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 

10 than 180 days; and 

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

12 the date the officer is detached from duty and end13 ing on the day before the officer’s retirement, but 

14 not for more than 60 days. 

15 ‘‘(c)(1) An appointment of an officer under sub16 section (a) does not vacate the permanent grade held by 

17 the officer. 

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

19 who holds the permanent grade of rear admiral (lower 

20 half) shall be considered for promotion to the permanent 

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

22 officer’s permanent grade. 

23 ‘‘(d) Whenever a vacancy occurs in a position des24 ignated under subsection (a), the Commandant shall in25 form the President of the qualifications needed by an offiVerDate Nov 24 2008 01:14 Jun 05, 2009 Jkt 079200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1194.IS S1194

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1 cer serving in that position or office to carry out effectively 

2 the 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 

17 retired 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 

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

21 shall 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 

24 Admiral’’. 

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 

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

14 fifth sentence 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 

18 Act, 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 

11 continue, for not more than 1 year after the 

12 date of enactment of this Act, to perform the 

13 duties of the officer’s former position and any 

14 other such duties that the Commandant pre15 scribes. 

16 SEC. 302. NUMBER AND DISTRIBUTION OF COMMISSIONED 

17 OFFICERS ON THE ACTIVE DUTY PROMOTION 

18 LIST. 

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

20 States Code, is amended— 

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

22 inserting the following: 

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

24 officers on the active duty promotion list, excluding war25 rant officers, shall not exceed 7,200. This total number 


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

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

3 Guard Academy class. 

4 ‘‘(b) The total number of commissioned officers au5 thorized by this section shall be distributed in grade not 

6 to exceed the following percentages: 

7 ‘‘(1) 0.375 percent for rear admiral. 

8 ‘‘(2) 0.375 percent for rear admiral (lower 

9 half). 

10 ‘‘(3) 6.0 percent for captain. 

11 ‘‘(4) 15.0 percent for commander. 

12 ‘‘(5) 22.0 percent for lieutenant commander. 

13 The Secretary shall prescribe the percentages applicable 

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

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

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

17 paragraphs (1) through (5) and apply that total percent18 age reduction to any other lower grade or combination of 

19 lower grades. 

20 ‘‘(c) The Secretary shall, at least once a year, com21 pute the total number of commissioned officers authorized 

22 to serve in each grade by applying the grade distribution 

23 percentages of this section to the total number of commis24 sioned officers listed on the current active duty promotion 

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


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1 rounded to the nearest whole number. The number of com2 missioned officers on the active duty promotion list serving 

3 with other departments or agencies on a reimbursable 

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

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

6 of commissioned officers authorized to serve in each 

7 grade.’’; 

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

9 following: 

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

11 on active duty in each grade of the permanent commis12 sioned teaching staff of the Coast Guard Academy and 

13 of the Reserve serving in connection with organizing, ad14 ministering, recruiting, instructing, or training the reserve 

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

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

17 inserting the following: 

18 ‘‘§ 42. Number and distribution of commissioned offi19 cers on the active duty promotion list’’. 

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

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

22 relating to section 42 and inserting the following: 

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


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1 TITLE IV—PERSONNEL 

2 SEC. 401. LEAVE RETENTION AUTHORITY. 

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

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

5 or emergency by the President under the Robert T. Staf6 ford Disaster Relief and Emergency Assistance Act (Pub7 lic Law 93–288, 42 U.S.C. 5121 et seq.)’’ after ‘‘oper8 ation’’. 

9 SEC. 402. LEGAL ASSISTANCE FOR COAST GUARD RESERV10 ISTS. 

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

12 is amended— 

13 (1) by striking ‘‘(as determined by the Sec14 retary of Defense),’’ and inserting ‘‘(as determined 

15 by the Secretary of Defense and the Secretary of the 

16 department in which the Coast Guard is operating, 

17 with respect to the Coast Guard when it is not oper18 ating as a service of the Navy),’’; and 

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

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

21 Defense and the Secretary of the department in 

22 which the Coast Guard is operating, with respect to 

23 the Coast Guard when it is not operating as a serv24 ice of the Navy,’’. 


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1 SEC. 403. REIMBURSEMENT FOR CERTAIN MEDICAL-RE2 LATED TRAVEL EXPENSES. 

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

4 amended— 

5 (1) by striking ‘‘IN GENERAL.—In’’ and insert6 ing ‘‘IN GENERAL.—(1) In’’; and 

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

8 ‘‘(2) In any case in which a covered beneficiary re9 sides on an INCONUS island that lacks public access 

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

11 physician to a specialty care provider on the mainland who 

12 provides services less than 100 miles from the location in 

13 which the beneficiary resides, the Secretary shall reim14 burse the reasonable travel expenses of the covered bene15 ficiary, and, when accompaniment by an adult is nec16 essary, for a parent or guardian of the covered beneficiary 

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

18 is at least 21 years of age.’’. 

19 SEC. 404. RESERVE COMMISSIONED WARRANT OFFICER TO 

20 LIEUTENANT PROGRAM. 

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

22 amended to read as follows: 

23 ‘‘(a) The President may appoint temporary commis24 sioned officers— 

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

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1 tions, experience, and length of service, as the needs 

2 of the Coast Guard may require, from among the 

3 commissioned warrant officers, warrant officers, and 

4 enlisted members of the Coast Guard, and from li5 censed officers of the United States merchant ma6 rine; and 

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

8 not above lieutenant, appropriate to their qualifica9 tions, experience, and length of service, as the needs 

10 of the Coast Guard may require, from among the 

11 commissioned warrant officers of the Coast Guard 

12 Reserve.’’. 

13 SEC. 405. ENHANCED STATUS QUO OFFICER PROMOTION 

14 SYSTEM. 

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

16 is amended— 

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

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

19 of officers the board may recommend for promotion’’ 

20 and inserting ‘‘consideration’’. 

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

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

23 and 

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


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

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

3 board— 

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

5 the service for officers having particular skills, in6 cluding direction relating to the need for a minimum 

7 number of officers with particular skills within a 

8 specialty; and 

9 ‘‘(2) such other guidance that the Secretary be10 lieves may be necessary to enable the board to prop11 erly perform its functions. 

12 Selections made based on the direction and guidance pro13 vided under this subsection shall not exceed the maximum 

14 percentage of officers who may be selected from below the 

15 announced promotion zone at any given selection board 

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

17 (c) Section 259(a) of such title is amended by strik18 ing ‘‘board’’ the second place it appears and inserting 

19 ‘‘board, giving due consideration to the needs of the serv20 ice for officers with particular skills so noted in the spe21 cific direction furnished pursuant to section 258 of this 

22 title,’’. 

23 (d) Section 260(b) of such title is amended by insert24 ing ‘‘to meet the needs of the service (as noted in the speVerDate Nov 24 2008 01:14 Jun 05, 2009 Jkt 079200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S1194.IS S1194

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1 cific direction furnished the board under section 258 of 

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

3 SEC. 406. APPOINTMENT OF CIVILIAN COAST GUARD 

4 JUDGES. 

5 Section 875 of the Homeland Security Act of 2002 

6 (6 U.S.C. 455) is amended— 

7 (1) by redesignating subsection (c) as sub8 section (d); and 

9 (2) by inserting after subsection (b) the fol10 lowing: 

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

12 appoint civilian employees of the Department of Homeland 

13 Security as appellate military judges, available for assign14 ment to the Coast Guard Court of Criminal Appeals as 

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

16 Code.’’. 

17 SEC. 407. COAST GUARD PARTICIPATION IN THE ARMED 

18 FORCES RETIREMENT HOME SYSTEM. 

19 (a) ELIGIBILITY UNDER THE ARMED FORCES RE20 TIREMENT HOME ACT.—Section 1502 of the Armed 

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

22 is amended— 

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

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

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


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

2 10.’’; 

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

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

5 and inserting ‘‘Affairs; and’’; 

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

7 following: 

8 ‘‘(E) the Assistant Commandant of the 

9 Coast Guard for Human Resources.’’; and 

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

11 following: 

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

13 Coast Guard.’’. 

14 (b) DEDUCTIONS.— 

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

16 Code, is amended— 

17 (A) by striking ‘‘of the military depart18 ment’’ in subsection (a); 

19 (B) by striking ‘‘Armed Forces Retirement 

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

21 ‘‘Chief Operating Officer of the Armed Forces 

22 Retirement Home’’; and 

23 (C) by striking subsection (c). 

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

25 Code, is amended— 


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1 (A) by striking ‘‘Armed Forces Retirement 

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

3 ‘‘Chief Operating Officer of the Armed Forces 

4 Retirement Home,’’; and 

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

6 Guard when it is not operating as a service of 

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

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

9 of title 10.’’. 

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

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

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

13 TITLE V—ACQUISITION REFORM 

14 SEC. 501. CHIEF ACQUISITION OFFICER. 

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

16 States Code, is amended by adding at the end the fol17 lowing: 

18 ‘‘§ 55. Chief Acquisition Officer 

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

20 Guard a Chief Acquisition Officer selected by the Com21 mandant who shall be a Rear Admiral or civilian from the 

22 Senior Executive Service (career reserved). The Chief Ac23 quisition Officer shall serve at the Assistant Commandant 

24 level and have acquisition management as that individual’s 

25 primary duty. 


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1 ‘‘(b) QUALIFICATIONS.—The Chief Acquisition Offi2 cer shall be an acquisition professional with a Level III 

3 certification and must have at least 10 years experience 

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

5 spent as— 

6 ‘‘(1) the program executive officer; 

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

8 Level 2 acquisition project or program; 

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

10 or Level 2 acquisition; or 

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

12 ‘‘(c) FUNCTIONS OF THE CHIEF ACQUISITION OFFI13 CER.—The functions of the Chief Acquisition Officer in14 clude— 

15 ‘‘(1) monitoring the performance of programs 

16 and projects on the basis of applicable performance 

17 measurements and advising the Commandant, 

18 through the chain of command, regarding the appro19 priate business strategy to achieve the missions of 

20 the Coast Guard; 

21 ‘‘(2) maximizing the use of full and open com22 petition at the prime contract and subcontract levels 

23 in the acquisition of property, capabilities, and serv24 ices by the Coast Guard by establishing policies, pro25 cedures, and practices that ensure that the Coast 


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1 Guard receives a sufficient number of competitive 

2 proposals from responsible sources to fulfill the Gov3 ernment’s requirements, including performance and 

4 delivery schedules, at the lowest cost or best value 

5 considering the nature of the property or service 

6 procured; 

7 ‘‘(3) making acquisition decisions in concur8 rence with the technical authority, or technical au9 thorities, as appropriate, of the Coast Guard, as des10 ignated by the Commandant, consistent with all 

11 other applicable laws and decisions establishing pro12 cedures within the Coast Guard; 

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

14 specifications in instances in which performance 

15 based contracting is used; 

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

18 the unique acquisition policies, regulations, and 

19 standards of the Coast Guard; 

20 ‘‘(6) developing and maintaining an acquisition 

21 career management program in the Coast Guard to 

22 ensure that there is an adequate acquisition work23 force; 

24 ‘‘(7) assessing the requirements established for 

25 Coast Guard personnel regarding knowledge and 


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1 skill in acquisition resources and management and 

2 the adequacy of such requirements for facilitating 

3 the achievement of the performance goals established 

4 for acquisition management; 

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

6 hiring, training, and professional development; and 

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

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

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

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

12 by adding at the end the following: 

‘‘55. Chief Acquisition Officer.’’. 

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

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

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

16 shall select a Chief Acquisition Officer under section 55 

17 of title 14, United States Code. 

18 SEC. 502. ACQUISITIONS. 

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

20 Code, is amended by inserting after chapter 13 the fol21 lowing: 

22 ‘‘CHAPTER 15. ACQUISITIONS 

‘‘SUBCHAPTER 1—GENERAL PROVISIONS

‘‘Sec. 

‘‘561. Acquisition directorate 

‘‘562. Senior acquisition leadership team 


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‘‘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 

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 


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1 Guard’s missions and deliver the best value products 

2 and services to the Nation. 

3 ‘‘§ 562. Senior acquisition leadership team 

4 ‘‘(a) ESTABLISHMENT.—The Commandant shall es5 tablish a senior acquisition leadership team within the 

6 Coast Guard comprised of— 

7 ‘‘(1) the Vice Commandant; 

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

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

10 Coast Guard directorate; 

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

12 assigned field activity or command; and 

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

14 designated by the Commandant. 

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

16 team shall— 

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

18 such places and such times as the Commandant may 

19 require; 

20 ‘‘(2) provide advice and information on oper21 ational and performance requirements of the Coast 

22 Guard; 

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

24 operational readiness of the Coast Guard; 


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1 ‘‘(4) make recommendations to the Com2 mandant and the Chief Acquisition Officer to rem3 edy the identified gaps and vulnerabilities in the 

4 operational readiness of the Coast Guard; and 

5 ‘‘(5) contribute to the development of a profes6 sional, experienced acquisition workforce by pro7 viding acquisition-experience tours of duty and edu8 cational development for officers and employees of 

9 the Coast Guard. 

10 ‘‘§ 563. Improvements in Coast Guard acquisition 

11 management 

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

13 ‘‘(1) PROJECT OR PROGRAM MANAGER DE14 FINED.—In this section, the term ‘project or pro15 gram manager’ means an individual designated— 

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

17 asset to meet identified operational require18 ments; and 

19 ‘‘(B) to manage cost, schedule, and per20 formance of the acquisition or project or pro21 gram. 

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

23 not be assigned as the project or program manager 

24 for a Level 1 acquisition unless the individual holds 


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1 a Level III acquisition certification as a program 

2 manager. 

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

4 not be assigned as the project or program manager 

5 for a Level 2 acquisition unless the individual holds 

6 a Level II acquisition certification as a program 

7 manager. 

8 ‘‘(b) GUIDANCE ON TENURE AND ACCOUNTABILITY

9 OF PROGRAM AND PROJECT MANAGERS.—Not later than 

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

11 Authorization Act for Fiscal years 2010 and 2011, the 

12 Commandant shall issue guidance to address the qualifica13 tions, resources, responsibilities, tenure, and account14 ability of program and project managers for the manage15 ment of acquisition programs and projects. The guidance 

16 shall address, at a minimum— 

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

18 program managers, including the number of years of 

19 acquisition experience and the professional training 

20 levels to be required of those appointed to project or 

21 program management positions; and 

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

23 managers, including, to the extent appropriate, the 

24 authority to object to the addition of new program 


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1 requirements that would be inconsistent with the pa2 rameters established for an acquisition program. 

3 ‘‘(c) ACQUISITION WORKFORCE.— 

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

5 designate a sufficient number of positions to be in 

6 the Coast Guard’s acquisition workforce to perform 

7 acquisition-related functions at Coast Guard head8 quarters and field activities. 

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

10 shall ensure that members of the acquisition work11 force have expertise, education, and training in at 

12 least 1 of the following acquisition career fields: 

13 ‘‘(A) Acquisition logistics. 

14 ‘‘(B) Auditing. 

15 ‘‘(C) Business, cost estimating, and finan16 cial management. 

17 ‘‘(D) Contracting. 

18 ‘‘(E) Facilities engineering. 

19 ‘‘(F) Industrial or contract property man20 agement. 

21 ‘‘(G) Information technology. 

22 ‘‘(H) Manufacturing, production, and qual23 ity assurance. 

24 ‘‘(I) Program management. 

25 ‘‘(J) Purchasing. 


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1 ‘‘(K) Science and technology. 

2 ‘‘(L) Systems planning, research, develop3 ment, and engineering. 

4 ‘‘(M) Test and evaluation. 

5 ‘‘(3) ACQUISITION WORKFORCE EXPEDITED

6 HIRING AUTHORITY.— 

7 ‘‘(A) IN GENERAL.—For purposes of sec8 tions 3304, 5333, and 5753 of title 5, the Com9 mandant may— 

10 ‘‘(i) designate any category of acquisi11 tion positions within the Coast Guard as 

12 shortage category positions; and 

13 ‘‘(ii) use the authorities in such sec14 tions to recruit and appoint highly quali15 fied person directly to positions so des16 ignated. 

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

18 not appoint a person to a position of employ19 ment under this paragraph after September 30, 

20 2012. 

21 ‘‘(d) MANAGEMENT INFORMATION SYSTEM.— 

22 ‘‘(1) IN GENERAL.—The Commandant shall es23 tablish a management information system capability 

24 to improve acquisition workforce management and 

25 reporting. 


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1 ‘‘(2) INFORMATION MAINTAINED.—Information 

2 maintained with such capability shall include the fol3 lowing standardized information on individuals as4 signed to positions in the workforce: 

5 ‘‘(A) Qualifications, assignment history, 

6 and tenure of those individuals assigned to posi7 tions in the acquisition workforce or holding ac8 quisition-related certifications. 

9 ‘‘(B) Promotion rates for officers and 

10 members of the Coast Guard in the acquisition 

11 workforce. 

12 ‘‘(e) CAREER PATHS.—To establish acquisition man13 agement as a core competency of the Coast Guard, the 

14 Commandant shall— 

15 ‘‘(1) ensure that career paths for officers, mem16 bers, and employees of the Coast Guard who wish to 

17 pursue careers in acquisition are identified in terms 

18 of the education, training, experience, and assign19 ments necessary for career progression of those offi20 cers, members, and employees to the most senior po21 sitions in the acquisition workforce; and 

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


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1 ‘‘§ 564. Recognition of Coast Guard personnel for ex2 cellence in acquisition 

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

4 the date of enactment of the Coast Guard Authorization 

5 Act for Fiscal Years 2010 and 2011, the Commandant 

6 shall commence implementation of a program to recognize 

7 excellent performance by individuals and teams comprised 

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

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

10 acquisition project or program. 

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

12 ‘‘(1) specific award categories, criteria, and eli13 gibility and manners of recognition; 

14 ‘‘(2) procedures for the nomination by per15 sonnel of the Coast Guard of individuals and teams 

16 comprised of officers, members, and employees of 

17 the Coast Guard for recognition under the program; 

18 and 

19 ‘‘(3) procedures for the evaluation of nomina20 tions for recognition under the program by one or 

21 more panels of individuals from the Government, 

22 academia, and the private sector who have such ex23 pertise and are appointed in such manner as the 

24 Commandant shall establish for the purposes of this 

25 program. 


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1 ‘‘(c) AWARD OF CASH BONUSES.—As part of the pro2 gram required by subsection (a), the Commandant, sub3 ject to the availability of appropriations, may award to any 

4 civilian employee recognized pursuant to the program a 

5 cash bonus to the extent that the performance of such in6 dividual so recognized warrants the award of such bonus. 

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

8 ‘‘(a) IN GENERAL.— 

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

10 Except as provided in subsection (b), the Com11 mandant may not use a private sector entity as a 

12 lead systems integrator for an acquisition contract 

13 awarded or delivery order or task order issued after 

14 the date of enactment of the Coast Guard Author15 ization Act for Fiscal Years 2010 and 2011. 

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

17 Commandant and any lead systems integrator en18 gaged by the Coast Guard, pursuant to the excep19 tions described in subsection (b), shall use full and 

20 open competition for any acquisition contract award21 ed after the date of enactment of that Act, unless 

22 otherwise excepted in accordance with the Competi23 tion in Contracting Act of 1984 (41 U.S.C. 251 

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

25 Federal Acquisition Regulations. 


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

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

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

5 631 et seq.). 

6 ‘‘(b) EXCEPTIONS.— 

7 ‘‘(1) NATIONAL DISTRESS AND RESPONSE SYS8 TEM MODERNIZATION PROGRAM; NATIONAL SECU9 RITY CUTTERS 2 AND 3.—Notwithstanding sub10 section (a), the Commandant may use a private sec11 tor entity as a lead systems integrator for the Coast 

12 Guard to complete the National Distress and Re13 sponse System Modernization Program, the C4ISR 

14 projects directly related to the Integrated Deepwater 

15 Program, and National Security Cutters 2 and 3 if 

16 the Secretary of Homeland Security certifies that— 

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

18 the Competition in Contracting Act of 1984 (41 

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

20 that Act, and the Federal Acquisition Regula21 tions; and 

22 ‘‘(B) the acquisition and the use of a pri23 vate sector entity as a lead systems integrator 

24 for the acquisition is in the best interest of the 

25 Federal Government. 


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

2 Except for the modification of delivery or task or3 ders pursuant to Parts 4 and 42 of the Federal Ac4 quisition Regulations, the Commandant may not use 

5 a private sector entity as a lead systems integrator 

6 after the earlier of— 

7 ‘‘(A) September 30, 2012; or 

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

9 certifies in writing to the appropriate congres10 sional committees that the Coast Guard has 

11 available and can retain sufficient contracting 

12 personnel and expertise within the Coast 

13 Guard, through an arrangement with other 

14 Federal agencies, or through contracts or other 

15 arrangements with private sector entities, to 

16 perform the functions and responsibilities of the 

17 lead system integrator in an efficient and cost18 effective manner. 

19 ‘‘§ 566. Required contract terms 

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

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

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

23 an expected service life of 10 years and with a total acqui24 sition cost that is equal to or exceeds $10,000,000 award25 ed or issued by the Coast Guard after the date of enactVerDate Nov 24 2008 01:14 Jun 05, 2009 Jkt 079200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S1194.IS S1194

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1 ment of the Coast Guard Authorization Act for Fiscal 

2 Years 2010 and 2011— 

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

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

8 subcontractor is not allowed; 

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

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

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

17 ‘‘(4) specifies that, for the acquisition or up18 grade of air, surface, or shore capabilities and assets 

19 for which compliance with TEMPEST certification 

20 is a requirement, the standard for determining such 

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

22 then used by the Department of the Navy for that 

23 type of capability or asset; and 

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

25 Offshore Patrol Cutter, includes provisions speciVerDate Nov 24 2008 01:14 Jun 05, 2009 Jkt 079200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S1194.IS S1194

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

2 in general Atlantic and North Pacific Sea conditions, 

3 maximum range, and maximum speed the cutter will 

4 be built to achieve. 

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

6 Commandant shall ensure that any contract awarded or 

7 delivery order or task order issued by the Coast Guard 

8 after the date of enactment of the Coast Guard Authoriza9 tion Act for Fiscal Years 2010 and 2011 does not include 

10 any provision allowing for equitable adjustment that is not 

11 consistent with the Federal Acquisition Regulations. 

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

13 product teams, and all teams that oversee integrated prod14 uct teams, shall be chaired by officers, members, or em15 ployees of the Coast Guard. 

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

17 Commandant shall maintain or designate the technical au18 thorities to establish, approve, and maintain technical re19 quirements. Any such designation shall be made in writing 

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

21 Acquisition Officer established by section 55 of this title. 

22 ‘‘§ 567. Department of Defense consultation 

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

25 for support in contracting and management of Coast 


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1 Guard acquisition programs. The Commandant shall also 

2 seek opportunities to make use of Department of Defense 

3 contracts, and contracts of other appropriate agencies, to 

4 obtain the best possible price for assets acquired for the 

5 Coast Guard. 

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

7 Commandant shall seek to enter into a memorandum of 

8 understanding or a memorandum of agreement with the 

9 Secretary of the Navy to obtain the assistance of the Of10 fice of the Assistant Secretary of the Navy for Research, 

11 Development, and Acquisition, including the Navy Sys12 tems Command, with the oversight of Coast Guard major 

13 acquisition programs. The memorandum of understanding 

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

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

17 support that the Assistant Commandants for Acqui18 sition, Human Resources, Engineering, and Infor19 mation technology may identify; 

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

21 expertise; and 

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

23 Coast Guard and the Office of the Assistant Sec24 retary of the Navy for Research, Development, and 

25 Acquisition, including Naval Systems Commands, to 


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1 facilitate the development of organic capabilities in 

2 the Coast Guard. 

3 ‘‘(c) TECHNICAL REQUIREMENT APPROVAL PROCE4 DURES.—The Chief Acquisition Officer shall adopt, to the 

5 extent practicable, procedures modeled after those used by 

6 the Navy Senior Acquisition Official to approve all tech7 nical requirements. 

8 ‘‘§ 568. Undefinitized contractual actions 

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

10 into an undefinitized contractual action unless such action 

11 is directly approved by the Head of Contracting Activity 

12 of the Coast Guard. 

13 ‘‘(b) REQUESTS FOR UNDEFINITIZED CONTRACTUAL

14 ACTIONS.—Any request to the Head of Contracting Activ15 ity for approval of an undefinitized contractual action 

16 shall include a description of the anticipated effect on re17 quirements of the Coast Guard if a delay is incurred for 

18 the purposes of determining contractual terms, specifica19 tions, and price before performance is begun under the 

20 contractual action. 

21 ‘‘(c) REQUIREMENTS FOR UNDEFINITIZED CONTRAC22 TUAL ACTIONS.— 

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

24 SPECIFICATIONS, AND PRICE.—A contracting officer 

25 of the Coast Guard may not enter into an 


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1 undefinitized contractual action unless the contrac2 tual action provides for agreement upon contractual 

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

4 ‘‘(A) the end of the 180-day period begin5 ning on the date on which the contractor sub6 mits a qualifying proposal to definitize the con7 tractual terms, specifications, and price; or 

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

9 funds obligated under the contractual action is 

10 equal to more than 50 percent of the negotiated 

11 overall ceiling price for the contractual action. 

12 ‘‘(2) LIMITATION ON OBLIGATIONS.— 

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

14 subparagraph (B), the contracting officer for an 

15 undefinitized contractual action may not obli16 gate under such contractual action an amount 

17 that exceeds 50 percent of the negotiated over18 all ceiling price until the contractual terms, 

19 specifications, and price are definitized for such 

20 contractual action. 

21 ‘‘(B) EXCEPTION.—Notwithstanding sub22 paragraph (A), if a contractor submits a quali23 fying proposal to definitize an undefinitized 

24 contractual action before an amount that ex25 ceeds 50 percent of the negotiated overall ceilVerDate Nov 24 2008 01:14 Jun 05, 2009 Jkt 079200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S1194.IS S1194

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1 ing price is obligated on such action, the con2 tracting officer for such action may not obligate 

3 with respect to such contractual action an 

4 amount that exceeds 75 percent of the nego5 tiated overall ceiling price until the contractual 

6 terms, specifications, and price are definitized 

7 for such contractual action. 

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

9 the application of this subsection with respect to a 

10 contract if the Commandant determines that the 

11 waiver is necessary to support— 

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

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

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

15 transportation security incident (as defined in 

16 section 70101(6) of title 46); 

17 ‘‘(C) an operation in response to an emer18 gency that poses an unacceptable threat to 

19 human health or safety or to the marine envi20 ronment; or 

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

22 disaster or major disaster or emergency des23 ignated by the President under the Robert T. 

24 Stafford Disaster Relief and Emergency Assist25 ance Act (42 U.S.C. 5121 et seq.). 


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1 ‘‘(4) LIMITATION ON APPLICATION.—This sub2 section does not apply to an undefinitized contrac3 tual action for the purchase of initial spares. 

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

5 Requirements for spare parts and support equipment that 

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

7 in an undefinitized contractual action by the Coast Guard 

8 for spare parts and support equipment that are needed 

9 on an urgent basis unless the Commandant approves such 

10 inclusion as being— 

11 ‘‘(1) good business practice; and 

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

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

14 undefinitized contractual action under which performance 

15 has begun may not be modified unless the Commandant 

16 approves such modification as being— 

17 ‘‘(1) good business practice; and 

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

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

20 ensure that the profit allowed on an undefinitized contrac21 tual action for which the final price is negotiated after 

22 a substantial portion of the performance required is com23 pleted reflects— 

24 ‘‘(1) the possible reduced cost risk of the con25 tractor with respect to costs incurred during perVerDate Nov 24 2008 01:14 Jun 05, 2009 Jkt 079200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S1194.IS S1194

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1 formance of the contract before the final price is ne2 gotiated; and 

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

4 with respect to costs incurred during performance of 

5 the remaining portion of the contract. 

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

7 ‘‘(1) UNDEFINITIZED CONTRACTUAL ACTION.— 

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

9 subparagraph (B), the term ‘undefinitized con10 tractual action’ means a new procurement ac11 tion entered into by the Coast Guard for which 

12 the contractual terms, specifications, or price 

13 are not agreed upon before performance is 

14 begun under the action. 

15 ‘‘(B) EXCLUSION.—The term 

16 ‘undefinitized contractual action’ does not in17 clude contractual actions with respect to— 

18 ‘‘(i) foreign military sales; 

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

20 excess of the amount of the simplified ac21 quisition threshold; or 

22 ‘‘(iii) special access programs. 

23 ‘‘(2) QUALIFYING PROPOSAL.—The term ‘quali24 fying proposal’ means a proposal that contains suffi25 cient information to enable complete and meaningful 


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1 audits of the information contained in the proposal 

2 as determined by the contracting officer. 

3 ‘‘SUBCHAPTER 2—IMPROVED ACQUISITION PROCESS

4 AND PROCEDURES

5 ‘‘§ 571. Identification of major system acquisitions 

6 ‘‘(a) IN GENERAL.— 

7 ‘‘(1) SUPPORT MECHANISMS.—The Com8 mandant shall develop and implement mechanisms 

9 to support the establishment of mature and stable 

10 operational requirements for acquisitions under this 

11 subchapter. 

12 ‘‘(2) MISSION ANALYSIS; AFFORDABILITY AS13 SESSMENT.—The Commandant may not initiate a 

14 Level 1 or Level 2 acquisition project or program 

15 until the Commandant— 

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

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

18 and 

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

20 and 

21 ‘‘(B) prepares a preliminary affordability 

22 assessment for the project or program. 

23 ‘‘(b) ELEMENTS.— 

24 ‘‘(1) REQUIREMENTS.—The mechanisms re25 quired by subsection (a) shall ensure the implemenVerDate Nov 24 2008 01:14 Jun 05, 2009 Jkt 079200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S1194.IS S1194

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1 tation of a formal process for the development of a 

2 mission-needs statement, concept-of-operations docu3 ment, capability development plan, and resource pro4 posal for the initial project or program funding, and 

5 shall ensure the project or program is included in 

6 the Coast Guard Capital Investment Plan. 

7 ‘‘(2) ASSESSMENT OF TRADE-OFFS.—In con8 ducting an affordability assessment under subsection 

9 (a)(2)(B), the Commandant shall develop and imple10 ment mechanisms to ensure that trade-offs among 

11 cost, schedule, and performance are considered in 

12 the establishment of preliminary operational require13 ments for development and production of new assets 

14 and capabilities for Level 1 and Level 2 acquisitions 

15 projects and programs. 

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

17 Commandant shall develop staffing predictions, define 

18 human capital performance initiatives, and identify pre19 liminary training needs for any such project or program. 

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

21 Level 2 acquisition project or program may not be imple22 mented unless it is approved by the Department of Home23 land Security Acquisition Review Board or the Joint Re24 view Board. 


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1 ‘‘§ 572. Acquisition 

2 ‘‘(a) IN GENERAL.—The Commandant may not es3 tablish a Level 1 or Level 2 acquisition project or program 

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

5 ‘‘(1) clearly defines the operational require6 ments for the project or program; 

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

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

9 baseline; 

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

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

12 to determine a preferred solution in accordance with 

13 the requirements of this section. 

14 ‘‘(b) ANALYSIS OF ALTERNATIVES.— 

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

16 conduct an analysis of alternatives for the asset or 

17 capability to be acquired in an analyze and select 

18 phase of the acquisition process. 

19 ‘‘(2) REQUIREMENTS.—The analysis of alter20 natives shall be conducted by a federally funded re21 search and development center, a qualified entity of 

22 the Department of Defense, or a similar independent 

23 third party entity that has appropriate acquisition 

24 expertise and has no substantial financial interest in 

25 any part of the acquisition project or program that 


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

2 analysis of alternatives shall include— 

3 ‘‘(A) an assessment of the technical matu4 rity, and technical and other risks; 

5 ‘‘(B) an examination of capability, inter6 operability, and other disadvantages; 

7 ‘‘(C) an evaluation of whether different 

8 combinations or quantities of specific assets or 

9 capabilities could meet the Coast Guard’s over10 all performance needs; 

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

12 variables, and sensitivity to change in such as13 sumptions and variables; 

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

15 asset or prototype, an evaluation of relevant 

16 safety and performance records and costs; 

17 ‘‘(F) a calculation of life-cycle costs includ18 ing— 

19 ‘‘(i) an examination of likely research 

20 and development costs and the levels of un21 certainty associated with such estimated 

22 costs; 

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1 certainty associated with such estimated 

2 costs; 

3 ‘‘(iii) an examination of likely oper4 ating and support costs and the levels of 

5 uncertainty associated with such estimated 

6 costs; 

7 ‘‘(iv) if they are likely to be signifi8 cant, an examination of likely disposal 

9 costs and the levels of uncertainty associ10 ated with such estimated costs; and 

11 ‘‘(v) such additional measures as the 

12 Commandant or the Secretary of Home13 land Security determines to be necessary 

14 for appropriate evaluation of the asset; and 

15 ‘‘(G) the business case for each viable al16 ternative. 

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

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

19 2 acquisition project or program the Chief Acquisi20 tion Officer shall approve a test and evaluation mas21 ter plan specific to the acquisition project or pro22 gram for the capability, asset, or subsystems of the 

23 capability or asset and intended to minimize tech24 nical, cost, and schedule risk as early as practicable 

25 in the development of the project or program. 


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

2 master plan shall— 

3 ‘‘(A) set forth an integrated test and eval4 uation strategy that will verify that capability5 level or asset-level and subsystem-level design 

6 and development, including performance and 

7 supportability, have been sufficiently proven be8 fore the capability, asset, or subsystem of the 

9 capability or asset is approved for production; 

10 and 

11 ‘‘(B) require that adequate developmental 

12 tests and evaluations and operational tests and 

13 evaluations established under subparagraph (A) 

14 are performed to inform production decisions. 

15 ‘‘(3) OTHER COMPONENTS OF THE MASTER

16 PLAN.—At a minimum, the master plan shall iden17 tify— 

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

19 resolved through the integrated test and evalua20 tion strategy; 

21 ‘‘(B) critical operational issues to be as22 sessed in addition to the key performance pa23 rameters; 

24 ‘‘(C) specific development test and evalua25 tion phases and the scope of each phase; 


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1 ‘‘(D) modeling and simulation activities to 

2 be performed, if any, and the scope of such ac3 tivities; 

4 ‘‘(E) early operational assessments to be 

5 performed, if any, and the scope of such assess6 ments; 

7 ‘‘(F) operational test and evaluation 

8 phases; 

9 ‘‘(G) an estimate of the resources, includ10 ing funds, that will be required for all test, 

11 evaluation, assessment, modeling, and simula12 tion activities; and 

13 ‘‘(H) the Government entity or inde14 pendent entity that will perform the test, eval15 uation, assessment, modeling, and simulation 

16 activities. 

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

18 shall approve an updated master plan whenever 

19 there is a revision to project or program test and 

20 evaluation strategy, scope, or phasing. 

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

22 not— 

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1 fore the master plan is approved by the Chief 

2 Acquisition Officer; or 

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

4 capability, asset, or subsystem for which a mas5 ter plan is required under this subsection before 

6 the master plan is approved by the Chief Acqui7 sition Officer. 

8 ‘‘(d) LIFE-CYCLE COST ESTIMATES.— 

9 ‘‘(1) IN GENERAL.—The Commandant shall im10 plement mechanisms to ensure the development and 

11 regular updating of life-cycle cost estimates for each 

12 Level 1 or Level 2 acquisition to ensure that these 

13 estimates are considered in decisions to develop or 

14 produce new or enhanced capabilities and assets. 

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

16 life-cycle cost estimates that may be developed by ac17 quisition program offices, the Commandant shall re18 quire that an independent life-cycle cost estimate be 

19 developed for each Level 1 or Level 2 acquisition 

20 project or program. 

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

22 or Level 2 acquisition project or program the Com23 mandant shall require that life-cycle cost estimates 

24 shall be updated before each milestone decision is 


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1 concluded and the project or program enters a new 

2 acquisition phase. 

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

4 program may not enter the obtain phase under section 573 

5 unless the Department of Homeland Security Acquisition 

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

7 to which such responsibility is delegated by the Secretary 

8 of Homeland Security) has approved the analysis of alter9 natives for the project. The Joint Review Board may also 

10 approve the low rates initial production quantity for the 

11 project or program if such an initial production quantity 

12 is planned by the acquisition project or program and 

13 deemed appropriate by the Joint Review Board. 

14 ‘‘§ 573. Preliminary development and demonstration 

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

16 that developmental test and evaluation, operational test 

17 and evaluation, life cycle cost estimates, and the develop18 ment and demonstration requirements are met to confirm 

19 that the projects or programs meet the requirements de20 scribed in the mission-needs statement and the oper21 ational-requirements document and the following develop22 ment and demonstration objectives: 

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

24 design, manufacturing, and production solution is 


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

2 product design. 

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

4 meet contract specifications, acceptable operational 

5 performance requirements, and system security re6 quirements. 

7 ‘‘(3) To ensure that the product design is ma8 ture enough to commit to full production and de9 ployment. 

10 ‘‘(b) TESTS AND EVALUATIONS.— 

11 ‘‘(1) IN GENERAL.—The Commandant shall en12 sure that the Coast Guard conducts developmental 

13 tests and evaluations and operational tests and eval14 uations of a capability or asset and the subsystems 

15 of the capability or asset for which a master plan 

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

17 ‘‘(2) USE OF THIRD PARTIES.—The Com18 mandant shall ensure that the Coast Guard uses 

19 independent third parties with expertise in testing 

20 and evaluating the capabilities or assets and the 

21 subsystems of the capabilities or assets being ac22 quired to conduct developmental tests and evalua23 tions and operational tests and evaluations whenever 

24 the Coast Guard lacks the capability to conduct the 

25 tests and evaluations required by a master plan. 


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

2 The Commandant shall require that safety concerns 

3 identified during developmental or operational tests 

4 and evaluations or through independent or Govern5 ment-conducted design assessments of capabilities or 

6 assets and subsystems of capabilities or assets to be 

7 acquired by the Coast Guard shall be communicated 

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

9 after the completion of the test or assessment event 

10 or activity that identified the safety concern, to the 

11 program manager for the capability or asset and the 

12 subsystems concerned and to the Chief Acquisition 

13 Officer. 

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

15 FULL-RATE PRODUCTION.—If operational test and 

16 evaluation on a capability or asset already in low, 

17 initial, or full-rate production identifies a safety con18 cern with the capability or asset or any subsystems 

19 of the capability or asset not previously identified 

20 during developmental or operational test and evalua21 tion, the Commandant shall— 

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

23 Chief Acquisition Officer of the safety concern 

24 as soon as practicable, but not later than 30 

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1 uation event or activity that identified the safe2 ty concern; and 

3 ‘‘(B) notify the Chief Acquisition Officer 

4 and include in such notification— 

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

6 will be taken to correct or mitigate the 

7 safety concern in all capabilities or assets 

8 and subsystems of the capabilities or as9 sets yet to be produced, and the date by 

10 which those actions will be taken; 

11 ‘‘(ii) an explanation of the actions 

12 that will be taken to correct or mitigate 

13 the safety concern in previously produced 

14 capabilities or assets and subsystems of 

15 the capabilities or assets, and the date by 

16 which those actions will be taken; and 

17 ‘‘(iii) an assessment of the adequacy 

18 of current funding to correct or mitigate 

19 the safety concern in capabilities or assets 

20 and subsystems of the capabilities or as21 sets and in previously produced capabilities 

22 or assets and subsystems. 

23 ‘‘(c) TECHNICAL CERTIFICATION.— 

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

25 ensure that any Level 1 or Level 2 acquisition 


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1 project or program is certified by the technical au2 thority of the Coast Guard after review by an inde3 pendent third party with capabilities in the mission 

4 area, asset, or particular asset component. 

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

6 shall— 

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

8 surface, and shore assets that require TEM9 PEST certification and that are delivered after 

10 the date of enactment of the Coast Guard Au11 thorization Act for Fiscal Years 2010 and 2011 

12 to be tested in accordance with master plan 

13 standards and communications security stand14 ards by an independent third party that is au15 thorized by the Federal Government to perform 

16 such testing; and 

17 ‘‘(B) certify that the assets meet all appli18 cable TEMPEST requirements. 

19 ‘‘(3) VESSEL CLASSIFICATION.—The Com20 mandant shall cause each cutter, other than the Na21 tional Security Cutter, acquired by the Coast Guard 

22 and delivered after the date of enactment of the 

23 Coast Guard Authorization Act for Fiscal Years 

24 2010 and 2011 is to be classed by the American Bu25 reau of Shipping before final acceptance. 


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

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

3 support of a Level 1 or Level 2 acquisition project or pro4 gram unless the Department of Homeland Security Acqui5 sition Review Board has verified that the delivered asset 

6 or system meets the project or program performance and 

7 cost goals. 

8 ‘‘§ 574. Acquisition, production, deployment, and sup9 port 

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

11 ‘‘(1) ensure there is a stable and efficient pro12 duction and support capability to develop an asset or 

13 system; 

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

15 monitor performance and correct deficiencies; and 

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

17 the delivery of each asset or system to ensure the 

18 delivered asset or system achieves full operational 

19 capability. 

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

21 ‘‘(1) execute the productions contracts; 

22 ‘‘(2) ensure the delivered products meet oper23 ational cost and schedules requirements established 

24 in the acquisition program baseline; 


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1 ‘‘(3) validate manpower and training require2 ments to meet system needs to operate, maintain, 

3 support, and instruct the system; and 

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

5 plan to enter into programmatic sustainment, oper6 ations, and support. 

7 ‘‘§ 575. Acquisition program baseline breach 

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

9 a report to the appropriate congressional committees as 

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

11 Chief Acquisition Officer of the Coast Guard becomes 

12 aware of the breach of an acquisition program baseline 

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

14 ‘‘(1) a likely cost overrun greater than 15 per15 cent of the acquisition program baseline for that in16 dividual capability or asset or a class of capabilities 

17 or assets; 

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

19 delivery schedule for any individual capability or 

20 asset or class of capabilities or assets; or 

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

22 capability or asset or class of capabilities or assets 

23 to satisfy any key performance threshold or param24 eter under the acquisition program baseline. 


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1 ‘‘(b) CONTENT.—The report submitted under sub2 section (a) shall include— 

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

4 explanation of its cause; 

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

6 and schedule; 

7 ‘‘(3) an updated acquisition program baseline 

8 and the complete history of changes to the original 

9 acquisition program baseline; 

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

11 complete history of changes to the original schedule; 

12 ‘‘(5) a full life-cycle cost analysis for the capa13 bility or asset or class of capabilities or assets; 

14 ‘‘(6) a remediation plan identifying corrective 

15 actions and any resulting issues or risks; and 

16 ‘‘(7) a description of how progress in the reme17 diation plan will be measured and monitored. 

18 ‘‘(c) SUBSTANTIAL VARIANCES IN COSTS OR SCHED19 ULE.—If a likely cost overrun is greater than 25 percent 

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

21 and schedule described in the acquisition program baseline 

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

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

24 report a written certification, with a supporting expla25 nation, that— 


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

2 asset class to be acquired under the project or pro3 gram is essential to the accomplishment of Coast 

4 Guard missions; 

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

6 or asset or capability or asset class which will pro7 vide equal or greater capability in both a more cost8 effective and timely manner; 

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

10 for total acquisition cost are reasonable; and 

11 ‘‘(4) the management structure for the acquisi12 tion program is adequate to manage and control per13 formance, cost, and schedule. 

14 ‘‘SUBCHAPTER 3—DEFINITIONS

15 ‘‘§ 581. Definitions 

16 ‘‘In this chapter: 

17 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT18 TEES.—The term ‘appropriate congressional com19 mittees’ means the House of Representatives Com20 mittee on Transportation and Infrastructure and the 

21 Senate Committee on Commerce, Science, and 

22 Transportation. 

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

24 ‘Chief Acquisition Officer’ means the officer ap25 pointed under section 55 of this title. 


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

2 means the Commandant of the Coast Guard. 

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

4 Review Board’ means the Department of Homeland 

5 Security’s Investment Review Board, Joint Require6 ments Council, or other entity within the Depart7 ment designated by the Secretary as the Joint Re8 view Board for purposes of this chapter. 

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

10 acquisition’ means— 

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

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

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

14 ‘‘(ii) the estimated total acquisition 

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

16 ‘‘(B) any acquisition that the Chief Acqui17 sition Officer of the Coast Guard determines to 

18 have a special interest— 

19 ‘‘(i) due to— 

20 ‘‘(I) the experimental or tech21 nically immature nature of the asset; 

22 ‘‘(II) the technological complexity 

23 of the asset; 

24 ‘‘(III) the commitment of re25 sources; or 


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1 ‘‘(IV) the nature of the capability 

2 or set of capabilities to be achieved; or 

3 ‘‘(ii) because such acquisition is a 

4 joint acquisition. 

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

6 acquisition’ means an acquisition by the Coast 

7 Guard— 

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

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

10 greater than $300,000,000; or 

11 ‘‘(B) the estimated total acquisition costs 

12 of which are equal to or less than 

13 $300,000,0000, but greater than $100,000,000. 

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

15 cost’ means all costs for development, procurement, 

16 construction, and operations and support for a par17 ticular capability or asset, without regard to funding 

18 source or management control. 

19 ‘‘(8) SAFETY CONCERN.—The term ‘safety con20 cern’ means any hazard associated with a capability 

21 or asset or a subsystem of a capability or asset that 

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

23 typical Coast Guard user in testing, maintaining, re24 pairing, or operating the capability, asset, or sub25 system or any hazard associated with the capability, 


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1 asset, or subsystem that is likely to cause major 

2 damage to the capability, asset, or subsystem during 

3 the course of its normal operation by a typical Coast 

4 Guard user.’’. 

5 (b) CONFORMING AMENDMENT.—The part analysis 

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

7 inserting after the item relating to chapter 13 the fol8 lowing: 

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

9 SEC. 503. REPORT AND GUIDANCE ON EXCESS PASS10 THROUGH CHARGES. 

11 (a) COMPTROLLER GENERAL REPORT.— 

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

13 after the date of enactment of this Act, the Comp14 troller General shall issue a report on pass-through 

15 charges on contracts, subcontracts, delivery orders, 

16 and task orders that were executed by a lead sys17 tems integrator under contract to the Coast Guard 

18 during the 3 full calendar years preceding the date 

19 of enactment of this Act. 

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

21 subsection— 

22 (A) shall assess the extent to which the 

23 Coast Guard paid excessive pass-through 

24 charges to contractors or subcontractors that 

25 provided little or no value to the performance of 


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1 a contract or the production of a procured 

2 asset; and 

3 (B) shall assess the extent to which the 

4 Coast Guard has been particularly vulnerable to 

5 excessive pass-through charges on any specific 

6 category of contracts or by any specific category 

7 of contractors. 

8 (b) GUIDANCE REQUIRED.— 

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

10 after the date of enactment of this Act, the Com11 mandant shall prescribe guidance to ensure that 

12 pass-through charges on contracts, subcontracts, de13 livery orders, and task orders that are executed with 

14 a private entity acting as a lead systems integrator 

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

16 in relation to the cost of work performed by the rel17 evant contractor or subcontractor. The guidance 

18 shall, at a minimum— 

19 (A) set forth clear standards for deter20 mining when no, or negligible, value has been 

21 added to a contract by a contractor or subcon22 tractor; 

23 (B) set forth procedures for preventing the 

24 payment by the Government of excessive pass25 through charges; and 


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1 (C) identify any exceptions determined by 

2 the Commandant to be in the best interest of 

3 the Government. 

4 (2) SCOPE OF GUIDANCE.—The guidance pre5 scribed under this subsection— 

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

7 contract or subcontract, delivery order, or task 

8 order that is— 

9 (i) awarded on the basis of adequate 

10 price competition, as determined by the 

11 Commandant; or 

12 (ii) for the acquisition of a commercial 

13 item, as defined in section 4(12) of the Of14 fice of Federal Procurement Policy Act (41 

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

16 (B) may include such additional exceptions 

17 as the Commandant determines to be necessary 

18 in the interest of the United States. 

19 (c) EXCESSIVE PASS-THROUGH CHARGE DE20 FINED.—In this section the term ‘‘excessive pass-through 

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

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

23 means a charge to the Government by the contractor or 

24 subcontractor that is for overhead or profit on work per25 formed by a lower-tier contractor or subcontractor, other 


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1 than reasonable charges for the direct costs of managing 

2 lower-tier contractors and subcontracts and overhead and 

3 profit based on such direct costs. 

4 (d) APPLICATION OF GUIDANCE.—The guidance pre5 scribed under this section shall apply to contracts awarded 

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

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

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

9 TITLE VI—SHIPPING AND 

10 NAVIGATION 

11 SEC. 601. TECHNICAL AMENDMENTS TO CHAPTER 313 OF 

12 TITLE 46, UNITED STATES CODE. 

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

14 States Code, is amended— 

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

16 31302, 31306, 31321, 31330, and 31343 each place 

17 it appears; 

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

19 section 31301(5)(F); 

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

21 and inserting ‘‘office; and’’; and 

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

23 following: 


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1 ‘‘(7) ‘Secretary’ means the Secretary of the De2 partment of Homeland Security, unless otherwise 

3 noted.’’. 

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

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

6 Commerce or Transportation is a mortgagee under this 

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

8 Commerce or Transportation, as a mortgagee under this 

9 chapter,’’. 

10 (c) SECRETARY OF TRANSPORTATION.—Section 

11 31329(d) of such title is amended by striking ‘‘Secretary.’’ 

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

13 (d) MORTGAGEE.— 

14 (1) Section 31330(a)(1) of such title, as amend15 ed by subsection (a)(1) of this section, is amended— 

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

17 in subparagraph (B); 

18 (B) by striking ‘‘Secretary; or’’ in subpara19 graph (C) and inserting ‘‘Secretary.’’; and 

20 (C) by striking subparagraph (D). 

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

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

23 in subparagraph (B); 

24 (B) by striking ‘‘faith; or’’ in subpara25 graph (C) and inserting ‘‘faith.’’; and 


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1 (C) by striking subparagraph (D). 

2 SEC. 602. CLARIFICATION OF RULEMAKING AUTHORITY. 

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

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

6 ‘‘§ 70122. Regulations 

7 ‘‘Unless otherwise provided, the Secretary may issue 

8 regulations necessary to implement this chapter.’’. 

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

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

11 end the following new item: 

‘‘70122. Regulations.’’. 

12 SEC. 603. COAST GUARD TO MAINTAIN LORAN–C NAVIGA13 TION SYSTEM. 

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

15 shall maintain the LORAN–C navigation system until 

16 such time as the Secretary is authorized by statute, explic17 itly referencing this section, to cease operating the system 

18 but expedite modernization projects necessary for transi19 tion to eLORAN technology. 

20 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated to the Secretary of 

22 Transportation, in addition to funds authorized under sec23 tion 101 of this Act for the Coast Guard for operation 

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

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


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1 infrastructure and to modernize and upgrade the LORAN 

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

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

4 Transportation may transfer from the Federal Aviation 

5 Administration and other agencies of the Department of 

6 Transportation such funds as may be necessary to reim7 burse the Coast Guard for related expenses. 

8 (c) REPORT ON TRANSITION TO ELORAN TECH9 NOLOGY.—No later than 6 months after the date of enact10 ment of this Act, the Secretary of Transportation, in co11 operation with the Secretary of the Department in which 

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

13 the Senate Committee on Commerce, Science, and Trans14 portation and the House of Representatives Committee on 

15 Transportation and Infrastructure a detailed 5-year plan 

16 for transition to eLORAN technology that includes— 

17 (1) the timetable, milestones, projects, and fu18 ture funding required to complete the transition 

19 from LORAN–C to eLORAN technology for provi20 sion of positioning, navigation, and timing services; 

21 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 

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

4 of the ongoing High Latitude Study to assess polar ice5 breaking mission requirements, which ever occurs later, 

6 the Commandant 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 for operation by 

14 the Coast Guard, and 

15 (C) any combination of the activities de16 scribed in subparagraphs (A) and (B), to carry 

17 out the missions of the Coast Guard; and 

18 (2) conduct an analysis of the impact on mis19 sion capacity and the ability of the United States to 

20 maintain a presence in the polar regions through the 

21 year 2020 if recapitalization of the polar icebreaker 

22 fleet, either by constructing new polar icebreakers or 

23 rebuilding, renovating, or improving the existing 

24 fleet of polar icebreakers, is not fully funded. 

25 (b) REPORTS TO CONGRESS.— 


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1 (1) Not later than 90 days after the date of en2 actment of this Act or the date of completion of the 

3 ongoing High Latitude Study to assess polar ice4 breaking mission requirements, which ever occurs 

5 later, the Commandant of the Coast Guard shall 

6 submit a report containing the results of the study, 

7 together with recommendations the Commandant 

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

9 14, United States Code, to the Senate Committee on 

10 Commerce, Science, and Transportation and the 

11 House of Representatives Committee on Transpor12 tation and Infrastructure. 

13 (2) Not later than 1 year after the date of en14 actment of this Act, the Commandant shall submit 

15 reports containing the results of the analyses re16 quired under paragraphs (1) and (2) of subsection 

17 (a), together with recommendations the Com18 mandant deems appropriate under section 93(a)(24) 

19 of title 14, United States Code, to the Senate Com20 mittee on Commerce, Science, and Transportation 

21 and the House of Representatives Committee on 

22 Transportation and Infrastructure. 


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1 SEC. 605. VESSEL SIZE LIMITS. 

2 (a) LENGTH, TONNAGE, AND HORSEPOWER.—Sec3 tion 12113(d)(2) of title 46, United States Code, is 

4 amended— 

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

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

7 (2) by striking ‘‘and’’ at the end of subpara8 graph (A)(ii); 

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

10 (4) by striking the period at the end of sub11 paragraph (B) and inserting ‘‘; or’’; and 

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

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

14 a replacement vessel under section 208(g) of 

15 the American Fisheries Act (title II of division 

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

17 627) and is eligible for a fishery endorsement 

18 under this section.’’. 

19 (b) CONFORMING AMENDMENTS.— 

20 (1) VESSEL REBUILDING AND REPLACE21 MENT.—Section 208(g) of the American Fisheries 

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

23 112 Stat. 2681–627) is amended to read as follows: 

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

25 ‘‘(1) IN GENERAL.— 


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1 ‘‘(A) REBUILD OR REPLACE.—Notwith2 standing any limitation to the contrary on re3 placing, rebuilding, or lengthening vessels or 

4 transferring permits or licenses to a replace5 ment vessel contained in sections 679.2 and 

6 679.4 of title 50, Code of Federal Regulations, 

7 as in effect on the date of enactment of the 

8 Coast Guard Authorization Act for Fiscal Years 

9 2010 and 2011 and except as provided in para10 graph (4), the owner of a vessel eligible under 

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

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

13 safety and operational efficiencies (including 

14 fuel efficiency), may rebuild or replace that ves15 sel (including fuel efficiency) with a vessel docu16 mented with a fishery endorsement under sec17 tion 12113 of title 46, United States Code. 

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

19 or replacement vessel shall be eligible in the 

20 same manner and subject to the same restric21 tions and limitations under such subsection as 

22 the vessel being rebuilt or replaced. 

23 ‘‘(C) TRANSFER OF PERMITS AND LI24 CENSES.—Each fishing permit and license held 

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


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1 or replaced under subparagraph (A) shall be 

2 transferred to the rebuilt or replacement vessel. 

3 ‘‘(2) RECOMMENDATIONS OF NORTH PACIFIC

4 COUNCIL.—The North Pacific Council may rec5 ommend for approval by the Secretary such con6 servation and management measures, including size 

7 limits and measures to control fishing capacity, in 

8 accordance with the Magnuson-Stevens Act as it 

9 considers necessary to ensure that this subsection 

10 does not diminish the effectiveness of fishery man11 agement plans of the Bering Sea and Aleutian Is12 lands Management Area or the Gulf of Alaska. 

13 ‘‘(3) SPECIAL RULE FOR REPLACEMENT OF

14 CERTAIN VESSELS.— 

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

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

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

18 States Code, a vessel that is eligible under sub19 section (a), (b), (c), (d), or (e) (other than 

20 paragraph (21)) and that qualifies to be docu21 mented with a fishery endorsement pursuant to 

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

23 a replacement vessel under paragraph (1) if the 

24 vessel that is replaced is validly documented 

25 with a fishery endorsement pursuant to section 


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1 203(g) or 213(g) before the replacement vessel 

2 is documented with a fishery endorsement 

3 under section 12113 of title 46, United States 

4 Code. 

5 ‘‘(B) APPLICABILITY.—A replacement ves6 sel under subparagraph (A) and its owner and 

7 mortgagee are subject to the same limitations 

8 under section 203(g) or 213(g) that are appli9 cable to the vessel that has been replaced and 

10 its owner and mortgagee. 

11 ‘‘(4) SPECIAL RULES FOR CERTAIN CATCHER

12 VESSELS.— 

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

14 covered vessel described in subparagraph (B) is 

15 prohibited from harvesting fish in any fishery 

16 (except for the Pacific whiting fishery) managed 

17 under the authority of any regional fishery 

18 management council (other than the North Pa19 cific Council) established under section 302(a) 

20 of the Magnuson-Stevens Act. 

21 ‘‘(B) COVERED VESSELS.—A covered ves22 sel referred to in subparagraph (A) is— 

23 ‘‘(i) a vessel eligible under subsection 

24 (a), (b), or (c) that is replaced under para25 graph (1); or 


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1 ‘‘(ii) a vessel eligible under subsection 

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

3 its registered length, gross tonnage, or 

4 shaft horsepower. 

5 ‘‘(5) LIMITATION ON FISHERY ENDORSE6 MENTS.—Any vessel that is replaced under this sub7 section shall thereafter not be eligible for a fishery 

8 endorsement under section 12113 of title 46, United 

9 States Code, unless that vessel is also a replacement 

10 vessel described in paragraph (1). 

11 ‘‘(6) GULF OF ALASKA LIMITATION.—Notwith12 standing paragraph (1), the Secretary shall prohibit 

13 from participation in the groundfish fisheries of the 

14 Gulf of Alaska any vessel that is rebuilt or replaced 

15 under this subsection and that exceeds the maximum 

16 length overall specified on the license that authorizes 

17 fishing for groundfish pursuant to the license limita18 tion program under part 679 of title 50, Code of 

19 Federal Regulations, as in effect on the date of en20 actment of the Coast Guard Authorization Act for 

21 Fiscal Years 2010 and 2011. 

22 ‘‘(7) AUTHORITY OF PACIFIC COUNCIL.—Noth23 ing in this section shall be construed to diminish or 

24 otherwise affect the authority of the Pacific Council 

25 to recommend to the Secretary conservation and 


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1 management measures to protect fisheries under its 

2 jurisdiction (including the Pacific whiting fishery) 

3 and participants in such fisheries from adverse im4 pacts caused by this Act.’’. 

5 (2) EXEMPTION OF CERTAIN VESSELS.—Sec6 tion 203(g) of the American Fisheries Act (title II 

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

8 2681–620) is amended— 

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

10 States official number 651041)’’; 

11 (B) by striking ‘‘, NORTHERN TRAV12 ELER (United States official number 635986), 

13 and NORTHERN VOYAGER (United States 

14 official number 637398) (or a replacement ves15 sel for the NORTHERN VOYAGER that com16 plies with paragraphs (2), (5), and (6) of sec17 tion 208(g) of this Act)’’; and 

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

19 NORTHERN’’ and all that follows through 

20 ‘‘PHOENIX,’’. 

21 (3) FISHERY COOPERATIVE EXIT PROVI22 SIONS.—Section 210(b) of the American Fisheries 

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

24 112 Stat. 2681–629) is amended— 


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1 (A) by moving the matter beginning with 

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

3 the right; and 

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

5 ‘‘(7) FISHERY COOPERATIVE EXIT PROVI6 SIONS.— 

7 ‘‘(A) FISHING ALLOWANCE DETERMINA8 TION.—For purposes of determining the aggre9 gate percentage of directed fishing allowances 

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

11 removed from the directed pollock fishery, the 

12 fishery allowance for pollock for the vessel being 

13 removed— 

14 ‘‘(i) shall be based on the catch his15 tory determination for the vessel made 

16 pursuant to section 679.62 of title 50, 

17 Code of Federal Regulations, as in effect 

18 on the date of enactment of the Coast 

19 Guard Authorization Act of 2008; and 

20 ‘‘(ii) shall be assigned, for all pur21 poses under this title, in the manner speci22 fied by the owner of the vessel being re23 moved to any other catcher vessel or 

24 among other catcher vessels participating 

25 in the fishery cooperative if such vessel or 


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1 vessels remain in the fishery cooperative 

2 for at least one year after the date on 

3 which the vessel being removed leaves the 

4 directed pollock fishery. 

5 ‘‘(B) ELIGIBILITY FOR FISHERY ENDORSE6 MENT.—Except as provided in subparagraph 

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

8 paragraph shall be permanently ineligible for a 

9 fishery endorsement, and any claim (including 

10 relating to catch history) associated with such 

11 vessel that could qualify any owner of such ves12 sel for any permit to participate in any fishery 

13 within the exclusive economic zone of the 

14 United States shall be extinguished, unless such 

15 removed vessel is thereafter designated to re16 place a vessel to be removed pursuant to this 

17 paragraph. 

18 ‘‘(C) LIMITATIONS ON STATUTORY CON19 STRUCTION.—Nothing in this paragraph shall 

20 be construed— 

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

22 States official number 905625), DONA 

23 MARTITA (United States official number 

24 651751), NORDIC EXPLORER (United 

25 States official number 678234), and 


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1 PROVIDIAN (United States official num2 ber 1062183) ineligible for a fishery en3 dorsement or any permit necessary to par4 ticipate in any fishery under the authority 

5 of the New England Fishery Management 

6 Council or the Mid-Atlantic Fishery Man7 agement Council established, respectively, 

8 under subparagraphs (A) and (B) of sec9 tion 302(a)(1) of the Magnuson-Stevens 

10 Act; or 

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

12 clause (i) to participate in any fishery 

13 under the authority of the Councils re14 ferred to in clause (i) in any manner that 

15 is not consistent with the fishery manage16 ment plan for the fishery developed by the 

17 Councils under section 303 of the Magnu18 son-Stevens Act.’’. 

19 TITLE VII—VESSEL 

20 CONVEYANCE 

21 SEC. 701. SHORT TITLE. 

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

23 Act’’. 


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1 SEC. 702. CONVEYANCE OF COAST GUARD VESSELS FOR 

2 PUBLIC PURPOSES. 

3 (a) IN GENERAL.—Whenever the transfer of owner4 ship of a Coast Guard vessel to an eligible entity for use 

5 for educational, cultural, historical, charitable, rec6 reational, or other public purposes is authorized by law, 

7 the Coast Guard shall transfer the vessel to the General 

8 Services Administration for conveyance to the eligible enti9 ty. 

10 (b) CONDITIONS OF CONVEYANCE.—The General 

11 Services Administration may not convey a vessel to an eli12 gible entity as authorized by law unless the eligible entity 

13 agrees— 

14 (1) to provide the documentation needed by the 

15 General Services Administration to process a request 

16 for aircraft or vessels under section 102.37.225 of 

17 title 41, Code of Federal Regulations; 

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

19 and restrictions imposed on aircraft and vessels 

20 under section 102–37.460 of such title; 

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

22 States Government if it is needed for use by the 

23 Commandant of the Coast Guard in time of war or 

24 a national emergency; and 

25 (4) to hold the United States Government 

26 harmless for any claims arising from exposure to 


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1 hazardous materials, including asbestos and poly2 chlorinated biphenyls, after conveyance of the vessel, 

3 except for claims arising from use of the vessel by 

4 the United States Government under paragraph (3). 

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

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

7 nonprofit corporation, educational agency, community de8 velopment organization, or other entity that agrees to 

9 comply with the conditions established under this section. 

Æ 


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