(E) the business case in support of con-
structing National Security Cutters 3 through 
8, including a cost-benefit analysis; and 
(F) an analysis of how many Offshore Pa-
trol Cutters would be required to provide the 
patrol coverage provided by a National Security 
Cutter. 
(2) Within 4 months after the date of enact-
ment of this Act, a report on— 
(A) the impact that deployment of a Na-
tional Security Cutter and other cutter assets 
without the vertical unmanned aerial vehicle 
(VUAV) will have on the amount of patrol cov-
erage that will be able to be provided during 
missions conducted by the National Security 
Cutter and all other cutters planned to be 
equipped with a VUAV; 
(B) how the coverage gap will be made up; 
(C) an update on the current status of the 
development of the VUAV; and 
(D) the timeline detailing the major mile-
stones to be achieved during development of the 
VUAV and identifying the delivery date for the 
first and last VUAV.
(3) Within 30 days after the elevation to flag- 
level for resolution of any design or other dispute re-
garding the Deepwater Program contract or an item 
to be procured under that contract, including a de-
tailed description of the issue and the rationale un-
derlying the decision taken by the flag officer to re-
solve the issue. 
(4) Within 4 months after the date of enact-
ment of this Act, a report detailing the total number 
of change orders that have been created by the 
Coast Guard under the Deepwater Program before 
the date of enactment of this Act, the total cost of 
these change orders, and their impact on the Deep-
water Program schedule. 
(5) Within 180 days after the date of enact-
ment of this Act, a report detailing the technology 
risks and level of maturity for major technologies 
used on maritime patrol aircraft, the HC–130J, and 
the National Security Cutter. 
(6) Not less than 60 days before signing a con-
tract to acquire any vessel or aircraft, a report com-
paring the cost of purchasing that vessel or aircraft 
directly from the manufacturer or shipyard with the 
cost of procuring it through the Integrated Coast 
Guard System.
(7) Within 30 days after the Program Execu-
tive Officer of the Deepwater Program becomes 
aware of a likely cost overrun exceeding 5 percent of 
the overall asset acquisition contract cost or schedule 
delay exceeding 5 percent of the estimated asset con-
struction period under the Deepwater Program, a 
report by the Commandant containing a description 
of the cost overrun or delay, an explanation of the 
overrun or delay, a description of Coast Guard’s re-
sponse, and a description of significant delays in the 
procurement schedule likely to be caused by the 
overrun or delay. 
(8) Within 90 days after the date of enactment 
of this Act, articulation of a doctrine and description 
of an anticipated implementation of a plan for man-
agement of acquisitions programs, financial manage-
ment (including earned value management and cost 
estimating), engineering and logistics management, 
and contract management, that includes— 
(A) a description of how the Coast Guard 
will cultivate among uniformed personnel exper-
tise in acquisitions management and financial 
management; 
(B) a description of the processes that will 
be followed to draft and ensure technical review
of procurement packages, including statements 
of work, for any class of assets acquired by the 
Coast Guard; 
(C) a description of how the Coast Guard 
will conduct an independent cost estimating 
process, including independently developing cost 
estimates for major change orders; and 
(D) a description of how Coast Guard will 
strengthen the management of change orders. 
(9) Within 4 months after the date of enact-
ment of this Act, a report on the development of a 
new acquisitions office within the Coast Guard de-
scribing the specific staffing structure for that direc-
torate, including— 
(A) identification of all managerial posi-
tions proposed as part of the office, the func-
tions that each managerial position will fill, and 
the number of employees each manager will su-
pervise; and 
(B) a formal organizational chart and 
identification of when managerial positions are 
to be filled. 
(10) Ninety days prior to the issuance of a Re-
quest for Proposals for construction of an Offshore 
Patrol Cutter, a report detailing the service life, fa-
tigue life, maximum range, maximum speed, and 
number of days underway under general Atlantic 
and North Pacific Sea conditions the cutter shall be 
built to achieve. 
(11) The Secretary shall report annually on the 
percentage of the total amount of funds expended on 
procurements under the Deepwater Program that 
has been paid to each of small businesses and minor-
ity-owned businesses. 
(12) Within 120 days after the date of enact-
ment of this Act, a report on any Coast Guard mis-
sion performance gap due to the removal of Deep-
water Program assets from service. The report shall 
include the following: 
(A) A description of the mission perform-
ance gap detailing the geographic regions and 
Coast Guard capabilities affected. 
(B) An analysis of factors affecting the 
mission performance gap that are unrelated to 
the Deepwater Program, including deployment 
of Coast Guard assets overseas and continuous 
vessel shortages. 
(C) A description of measures being taken 
in the near term to fill the mission performance
gap, including what those measures are and 
when they will be implemented. 
(D) A description of measures being taken 
in the long term to fill the mission performance 
gap, including what those measures are and 
when they will be implemented. 
(E) A description of the potential alter-
natives to fill the mission performance gap, in-
cluding any acquisition or lease considered and 
the reasons they were not pursued. 
(b) REPORT REQUIRED ON ACCEPTANCE OF DELIV-
ERY OF INCOMPLETE ASSET.— 
(1) IN GENERAL.—If the Secretary accepts de-
livery of an asset after the date of enactment of this 
Act for which a contractually required certification 
cannot be achieved within 30 days after the date of 
delivery or with any system that is not fully func-
tional for the mission for which it was intended, the 
Secretary shall submit to the Committee on Trans-
portation and Infrastructure of the House of Rep-
resentatives and the Committee on Commerce, 
Science, and Transportation of the United States 
Senate within 30 days after accepting delivery of the 
asset a report explaining why acceptance of the asset
in such a condition is in the best interests of the 
United States Government. 
(2) CONTENTS.—The report shall— 
(A) specify the systems that are not able 
to achieve contractually required certifications 
within 30 days after the date of delivery and 
the systems that are not fully functional at the 
time of delivery for the missions for which they 
were intended; 
(B) identify milestones for the completion 
of required certifications and to make all sys-
tems fully functional; and 
(C) identify when the milestones will be 
completed, who will complete them, and the cost 
to complete them. 
SEC. 7. USE OF THE NAVAL SEA SYSTEMS COMMAND, THE 
NAVAL AIR SYSTEMS COMMAND, AND THE 
SPACE AND NAVAL WARFARE SYSTEMS COM-
MAND TO ASSIST THE COAST GUARD IN EX-
ERCISING TECHNICAL AUTHORITY FOR THE 
DEEPWATER PROGRAM AND OTHER COAST 
GUARD ACQUISITION PROGRAMS. 
(a) FINDINGS.—Congress finds that the Coast 
Guard’s use of the technical, contractual, and program 
management oversight expertise of the Department of the
Navy in ship and aircraft production complements and 
augments the Coast Guard’s organic expertise as it pro-
cures assets for the Deepwater Program. 
(b) INTER-SERVICE TECHNICAL ASSISTANCE.—The 
Secretary may enter into a memorandum of understanding 
or a memorandum of agreement with the Secretary of the 
Navy to provide for the use of the Navy Systems Com-
mands to assist the Coast Guard with the oversight of 
Coast Guard major acquisition programs. Such memo-
randum of understanding or memorandum of agreement 
shall, at a minimum provide for— 
(1) the exchange of technical assistance and 
support that the Coast Guard Chief Engineer and 
the Coast Guard Chief Information Officer, as Coast 
Guard Technical Authorities, may identify; 
(2) the use, as appropriate, of Navy technical 
expertise; and 
(3) the temporary assignment or exchange of 
personnel between the Coast Guard and the Navy 
Systems Commands to facilitate the development of 
organic capabilities in the Coast Guard. 
(c) TECHNICAL AUTHORITIES.—The Coast Guard 
Chief Engineer, Chief Information Officer, and Chief Ac-
quisition Officer shall adopt, to the extent practicable, pro-
cedures that are similar to those used by the Navy Senior
Acquisition Official to ensure the Coast Guard Technical 
Authorities, or designated Technical Warrant Holders, ap-
prove all technical requirements. 
(d) COORDINATION.—The Secretary, acting through 
the Commandant of the Coast Guard, may coordinate with 
the Secretary of the Navy, acting through the Chief of 
Naval Operations, to develop processes by which the as-
sistance will be requested from the Navy Systems Com-
mands and provided to the Coast Guard. 
(e) REPORT.—Not later than 120 days after the date 
of enactment of this Act and every twelve months there-
after, the Commandant of the Coast Guard shall report 
to the Committee on Transportation and Infrastructure 
of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate on 
the activities undertaken pursuant to such memorandum 
of understanding or memorandum of agreement. 
SEC. 8. DEFINITIONS. 
In this Act: 
(1) DEEPWATER PROGRAM.—The term ‘‘Deep-
water Program’’ means the Integrated Deepwater 
Systems Program described by the Coast Guard in 
its report to Congress entitled ‘‘Revised Deepwater 
Implementation Plan 2005’’, dated March 25, 2005. 
The Deepwater Program primarily involves the pro-
curement of cutter and aviation assets that operate 
more than 50 miles offshore. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the department in which the Coast 
Guard is operating. 
Passed the House of Representatives July 31, 2007. 
Attest: 
Clerk.
110TH CONGRESS 
1ST SESSION 
H. R. 2722 
AN ACT 
To restructure the Coast Guard Integrated 
Deepwater Program, and for other purposes.