In the Senate of the United States, 
May 7, 2010. 
Resolved, That the bill from the House of Representa-
tives (H.R. 3619) entitled ‘‘An Act to authorize appropria-
tions for the Coast Guard for fiscal year 2010, and for other 
purposes.’’, do pass with the following 
AMENDMENT: 
Strike out all after the enacting clause and insert: 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Coast Guard Authoriza-
tion Act for Fiscal Years 2010 and 2011’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—AUTHORIZATIONS 
Sec. 101. Authorization of appropriations. 
Sec. 102. Authorized levels of military strength and training. 
TITLE II—ADMINISTRATION 
Sec. 201. Authority to distribute funds through grants, cooperative agreements, 
and contracts to maritime authorities and organizations. 
Sec. 202. Assistance to foreign governments and maritime authorities. 
Sec. 203. Cooperative agreements for industrial activities.
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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 sys-
tem. 
Sec. 408. Crew wages on passenger vessels. 
Sec. 409. Protection and fair treatment of seafarers. 
TITLE V—ACQUISITION REFORM 
Sec. 501. Chief Acquisition Officer. 
Sec. 502. Acquisitions. 
‘‘CHAPTER 15—ACQUISITIONS 
‘‘SUBCHAPTER 1—GENERAL PROVISIONS 
‘‘Sec. 
‘‘561. Acquisition directorate 
‘‘562. Senior acquisition leadership team 
‘‘563. Improvements in Coast Guard acquisition management 
‘‘564. Recognition of Coast Guard personnel for excellence in acquisition 
‘‘565. Prohibition on use of lead systems integrators 
‘‘566. Required contract terms 
‘‘567. Department of Defense consultation 
‘‘568. Undefinitized contractual actions 
‘‘SUBCHAPTER 2—IMPROVED ACQUISITION PROCESS AND PROCEDURES 
‘‘Sec. 
‘‘571. Identification of major system acquisitions 
‘‘572. Acquisition 
‘‘573. Preliminary development and demonstration 
‘‘574. Acquisition, production, deployment, and support 
‘‘575. Acquisition program baseline breach 
‘‘SUBCHAPTER 3—DEFINITIONS 
‘‘Sec. 
‘‘581. Definitions’’ 
Sec. 503. Report and guidance on excess pass-through charges. 
TITLE VI—SHIPPING AND NAVIGATION 
Sec. 601. Technical amendments to chapter 313 of title 46, United States Code.
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Sec. 602. Clarification of rulemaking authority. 
Sec. 603. Icebreakers. 
Sec. 604. Phaseout of vessels supporting oil and gas development. 
TITLE VII—VESSEL CONVEYANCE 
Sec. 701. Short title. 
Sec. 702. Conveyance of Coast Guard vessels for public purposes. 
TITLE VIII—OIL POLLUTION PREVENTION 
Sec. 801. Rulemakings. 
Sec. 802. Oil transfers from vessels. 
Sec. 803. Improvements to reduce human error and near miss incidents. 
Sec. 804. Olympic coast national marine sanctuary. 
Sec. 805. Prevention of small oil spills. 
Sec. 806. Improved coordination with tribal governments. 
Sec. 807. Report on availability of technology to detect the loss of oil. 
Sec. 808. Use of oil spill liability trust fund. 
Sec. 809. International efforts on enforcement. 
Sec. 810. Higher volume port area regulatory definition change. 
Sec. 811. Tug escorts for laden oil tankers. 
Sec. 812. Extension of financial responsibility. 
Sec. 813. Oil spill liability trust fund investment amount. 
Sec. 814. Liability for use of single-hull vessels. 
TITLE IX—MISCELLANEOUS PROVISIONS 
Sec. 901. Vessel determination. 
Sec. 902. Conveyance of the Presque Isle Light Station Fresnel Lens to Presque 
Isle Township, Michigan. 
Sec. 903. Land conveyance, Coast Guard property in Marquette County, Michi-
gan, to the city of Marquette, Michigan. 
Sec. 904. Offshore supply vessels. 
Sec. 905. Assessment of certain aids to navigation and traffic flow. 
Sec. 906. Alternative licensing program for operators of uninspected passenger 
vessels on Lake Texoma in Texas and Oklahoma. 
TITLE X—BUDGETARY EFFECTS 
Sec. 1001. Budgetary effects. 
TITLE I—AUTHORIZATIONS 
SEC. 101. AUTHORIZATION OF APPROPRIATIONS. 
Funds are authorized to be appropriated for necessary 
expenses of the Coast Guard for each of fiscal years 2010 
and 2011 as follows: 
(1) For the operation and maintenance of the 
Coast Guard, $6,556,188,000, of which $24,500,000 is
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authorized to be derived from the Oil Spill Liability 
Trust Fund to carry out the purposes of section 
1012(a)(5) of the Oil Pollution Act of 1990. 
(2) For the acquisition, construction, renovation, 
and improvement of aids to navigation, shore and off-
shore facilities, vessels, and aircraft, including equip-
ment related thereto, $1,383,980,000, of which 
$20,000,000 shall be derived from the Oil Spill Li-
ability Trust Fund to carry out the purposes of sec-
tion 1012(a)(5) of the Oil Pollution Act of 1990, to 
remain available until expended; such funds appro-
priated for personnel compensation and benefits and 
related costs of acquisition, construction, and im-
provements shall be available for procurement of serv-
ices necessary to carry out the Integrated Deepwater 
Systems program. 
(3) For retired pay (including the payment of 
obligations otherwise chargeable to lapsed appropria-
tions for this purpose), payments under the Retired 
Serviceman’s Family Protection and Survivor Benefit 
Plans, and payments for medical care of retired per-
sonnel and their dependents under chapter 55 of title 
10, United States Code, $1,361,245,000.
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(4) For environmental compliance and restora-
tion functions under chapter 19 of title 14, United 
States Code, $13,198,000. 
(5) For research, development, test, and evalua-
tion programs related to maritime technology, 
$19,745,000. 
(6) For operation and maintenance of the Coast 
Guard reserve program, $133,632,000. 
SEC. 102. AUTHORIZED LEVELS OF MILITARY STRENGTH 
AND TRAINING. 
(a) ACTIVE DUTY STRENGTH.—The Coast Guard is 
authorized an end-of-year strength of active duty personnel 
of 49,954 as of September 30, 2010, and 52,452 as of Sep-
tember 30, 2011. 
(b) MILITARY TRAINING STUDENT LOADS.—The Coast 
Guard is authorized average military training student 
loads as follows: 
(1) For recruit and special training, 2,500 stu-
dent years for fiscal year 2010, and 2,625 student 
years for fiscal year 2011. 
(2) For flight training, 170 student years for fis-
cal year 2010 and 179 student years for fiscal year 
2011.
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(3) For professional training in military and ci-
vilian institutions, 350 student years for fiscal year 
2010 and 368 student years for fiscal year 2011. 
(4) For officer acquisition, 1,300 student years 
for fiscal year 2010 and 1,365 student years for fiscal 
year 2011. 
TITLE II—ADMINISTRATION 
SEC. 201. AUTHORITY TO DISTRIBUTE FUNDS THROUGH 
GRANTS, COOPERATIVE AGREEMENTS, AND 
CONTRACTS TO MARITIME AUTHORITIES AND 
ORGANIZATIONS. 
Section 149 of title 14, United States Code, is amended 
by adding at the end the following: 
‘‘(c) GRANTS TO INTERNATIONAL MARITIME ORGANI-
ZATIONS.—The Commandant may, after consultation with 
the Secretary of State, make grants to, or enter into cooper-
ative agreements, contracts, or other agreements with, inter-
national maritime organizations for the purpose of acquir-
ing information or data about merchant vessel inspections, 
security, safety and environmental requirements, classifica-
tion, and port state or flag state law enforcement or over-
sight.’’.
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SEC. 202. ASSISTANCE TO FOREIGN GOVERNMENTS AND 
MARITIME AUTHORITIES. 
Section 149 of title 14, United States Code, as amend-
ed by section 201, is further amended by adding at the end 
the following: 
‘‘(d) AUTHORIZED ACTIVITIES.— 
‘‘(1) The Commandant may transfer or expend 
funds from any appropriation available to the Coast 
Guard for— 
‘‘(A) the activities of traveling contact 
teams, including any transportation expense, 
translation services expense, or administrative 
expense that is related to such activities; 
‘‘(B) the activities of maritime authority li-
aison teams of foreign governments making re-
ciprocal visits to Coast Guard units, including 
any transportation expense, translation services 
expense, or administrative expense that is related 
to such activities; 
‘‘(C) seminars and conferences involving 
members of maritime authorities of foreign gov-
ernments; 
‘‘(D) distribution of publications pertinent 
to engagement with maritime authorities of for-
eign governments; and
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‘‘(E) personnel expenses for Coast Guard ci-
vilian and military personnel to the extent that 
those expenses relate to participation in an ac-
tivity described in subparagraph (C) or (D). 
‘‘(2) An activity may not be conducted under 
this subsection with a foreign country unless the Sec-
retary of State approves the conduct of such activity 
in that foreign country.’’. 
SEC. 203. COOPERATIVE AGREEMENTS FOR INDUSTRIAL AC-
TIVITIES. 
Section 151 of title 14, United States Code, is amend-
ed— 
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘All orders’’; and 
(2) by adding at the end the following: 
‘‘(b) ORDERS AND AGREEMENTS FOR INDUSTRIAL AC-
TIVITIES.—Under this section, the Coast Guard industrial 
activities may accept orders and enter into reimbursable 
agreements with establishments, agencies, and departments 
of the Department of Defense and the Department of Home-
land Security.’’.
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SEC. 204. DEFINING COAST GUARD VESSELS AND AIR-
CRAFT. 
(a) IN GENERAL.—Chapter 17 of title 14, United 
States Code, is amended by inserting after section 638 the 
following new section: 
‘‘§ 638a. Coast Guard vessels and aircraft defined 
‘‘For the purposes of sections 637 and 638 of this title, 
the term Coast Guard vessels and aircraft means— 
‘‘(1) any vessel or aircraft owned, leased, trans-
ferred to, or operated by the Coast Guard and under 
the command of a Coast Guard member; or 
‘‘(2) any other vessel or aircraft under the tac-
tical control of the Coast Guard on which one or more 
members of the Coast Guard are assigned and con-
ducting Coast Guard missions.’’. 
(b) CLERICAL AMENDMENT.—The table of contents for 
chapter 17 of such title is amended by inserting after the 
item relating to section 638 the following: 
‘‘638a. Coast Guard vessels and aircraft defined.’’. 
TITLE III—ORGANIZATION 
SEC. 301. VICE COMMANDANT; VICE ADMIRALS. 
(a) VICE COMMANDANT.— 
(1) Section 41 of title 14, United States Code, is 
amended by striking ‘‘an admiral,’’ and inserting 
‘‘admirals,’’.
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(2) The fourth sentence of section 47 of title 14, 
United States Code, is amended by striking ‘‘vice ad-
miral’’ and inserting ‘‘admiral’’. 
(b) VICE ADMIRALS.—Section 50 of such title is 
amended to read as follows: 
‘‘§ 50. Vice admirals 
‘‘(a)(1) The President may designate no more than 4 
positions of importance and responsibility that shall be held 
by officers who— 
‘‘(A) while so serving, shall have the grade of vice 
admiral, with the pay and allowances of that grade; 
and 
‘‘(B) shall perform such duties as the Com-
mandant may prescribe. 
‘‘(2) The President may appoint, by and with the ad-
vice and consent of the Senate, and reappoint, by and with 
the advice and consent of the Senate, to any such position 
an officer of the Coast Guard who is serving on active duty 
above the grade of captain. The Commandant shall make 
recommendations for such appointments. 
‘‘(b)(1) The appointment and the grade of vice admiral 
shall be effective on the date the officer assumes that duty 
and, except as provided in paragraph (2) of this subsection 
or in section 51(d) of this title, shall terminate on the date 
the officer is detached from that duty.
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‘‘(2) An officer who is appointed to a position des-
ignated under subsection (a) shall continue to hold the 
grade of vice admiral— 
‘‘(A) while under orders transferring the officer 
to another position designated under subsection (a), 
beginning on the date the officer is detached from that 
duty and terminating on the date before the day the 
officer assumes the subsequent duty, but not for more 
than 60 days; 
‘‘(B) while hospitalized, beginning on the day of 
the hospitalization and ending on the day the officer 
is discharged from the hospital, but not for more than 
180 days; and 
‘‘(C) while awaiting retirement, beginning on the 
date the officer is detached from duty and ending on 
the day before the officer’s retirement, but not for 
more than 60 days. 
‘‘(c)(1) An appointment of an officer under subsection 
(a) does not vacate the permanent grade held by the officer. 
‘‘(2) An officer serving in a grade above rear admiral 
who holds the permanent grade of rear admiral (lower half) 
shall be considered for promotion to the permanent grade 
of rear admiral as if the officer was serving in the officer’s 
permanent grade.
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‘‘(d) Whenever a vacancy occurs in a position des-
ignated under subsection (a), the Commandant shall inform 
the President of the qualifications needed by an officer serv-
ing in that position or office to carry out effectively the 
duties and responsibilities of that position or office.’’. 
(c) REPEAL.—Section 50a of such title is repealed. 
(d) CONFORMING AMENDMENTS.—Section 51 of such 
title is amended— 
(1) by striking subsections (a), (b), and (c) and 
inserting the following: 
‘‘(a) An officer, other than the Commandant, who, 
while serving in the grade of admiral or vice admiral, is 
retired for physical disability shall be placed on the retired 
list with the highest grade in which that officer served. 
‘‘(b) An officer, other than the Commandant, who is 
retired while serving in the grade of admiral or vice admi-
ral, or who, after serving at least 21⁄2 years in the grade 
of admiral or vice admiral, is retired while serving in a 
lower grade, may in the discretion of the President, be re-
tired with the highest grade in which that officer served. 
‘‘(c) An officer, other than the Commandant, who, after 
serving less than 21⁄2 years in the grade of admiral or vice 
admiral, is retired while serving in a lower grade, shall 
be retired in his permanent grade.’’; and
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(2) by striking ‘‘Area Commander, or Chief of 
Staff’’ in subsection (d)(2) and inserting ‘‘or Vice Ad-
miral’’. 
(e) CONTINUITY OF GRADE.—Section 52 of title 14, 
United States Code, is amended by inserting ‘‘or admiral’’ 
after ‘‘vice admiral’’ the first place it appears. 
(f) CONTINUATION ON ACTIVE DUTY.—The second sen-
tence of section 290(a) of title 14, United States Code, is 
amended to read as follows: ‘‘Officers, other than the Com-
mandant, serving for the time being or who have served in 
the grade of vice admiral or admiral are not subject to con-
sideration for continuation under this subsection, and as 
to all other provisions of this section shall be considered 
as having been continued at the grade of rear admiral.’’. 
(g) CLERICAL AMENDMENTS.— 
(1) The section caption for section 47 of such 
title is amended to read as follows: 
‘‘§ 47. Vice commandant; appointment’’. 
(2) The section caption for section 52 of title 14, 
United States Code, is amended to read as follows: 
‘‘§ 52. Vice admirals and admiral, continuity of 
grade’’. 
(3) The table of contents for chapter 3 of such 
title is amended—
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(A) by striking the item relating to section 
47 and inserting the following: 
‘‘47. Vice Commandant; appointment.’’; 
(B) by striking the item relating to section 
50a; 
(C) by striking the item relating to section 
50 and inserting the following: 
‘‘50. Vice admirals.’’; and 
(D) by striking the item relating to section 
52 and inserting the following: 
‘‘52. Vice admirals and admiral, continuity of grade.’’. 
(h) TECHNICAL CORRECTION.—Section 47 of such title 
is further amended by striking ‘‘subsection’’ in the fifth sen-
tence and inserting ‘‘section’’. 
(i) TREATMENT OF INCUMBENTS; TRANSITION.— 
(1) Notwithstanding any other provision of law, 
the officer who, on the date of enactment of this Act, 
is serving as Vice Commandant— 
(A) shall continue to serve as Vice Com-
mandant; 
(B) shall have the grade of admiral with 
pay and allowances of that grade; and 
(C) shall not be required to be reappointed 
by reason of the enactment of that Act. 
(2) Notwithstanding any other provision of law, 
an officer who, on the date of enactment of this Act,
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is serving as Chief of Staff, Commander, Atlantic 
Area, or Commander, Pacific Area— 
(A) shall continue to have the grade of vice 
admiral with pay and allowance of that grade 
until such time that the officer is relieved of his 
duties and appointed and confirmed to another 
position as a vice admiral or admiral; or 
(B) for the purposes of transition, may con-
tinue at the grade of vice admiral with pay and 
allowance of that grade, for not more than 1 
year after the date of enactment of this Act, to 
perform the duties of the officer’s former position 
and any other such duties that the Commandant 
prescribes. 
SEC. 302. NUMBER AND DISTRIBUTION OF COMMISSIONED 
OFFICERS ON THE ACTIVE DUTY PROMOTION 
LIST. 
(a) IN GENERAL.—Section 42 of title 14, United 
States Code, is amended— 
(1) by striking subsections (a), (b), and (c) and 
inserting the following: 
‘‘(a) The total number of Coast Guard commissioned 
officers on the active duty promotion list, excluding war-
rant officers, shall not exceed 7,200. This total number may 
be temporarily increased up to 2 percent for no more than
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departments or agencies on a reimbursable basis or excluded 
under the provisions of section 324(d) of title 49, shall not 
be counted against the total number of commissioned offi-
cers authorized to serve in each grade.’’; 
(2) by striking subsection (e) and inserting the 
following: 
‘‘(e) The number of officers authorized to be serving 
on active duty in each grade of the permanent commis-
sioned teaching staff of the Coast Guard Academy and of 
the Reserve serving in connection with organizing, admin-
istering, recruiting, instructing, or training the reserve 
components shall be prescribed by the Secretary.’’; and 
(3) by striking the caption of such section and 
inserting the following: 
‘‘§ 42. Number and distribution of commissioned offi-
cers on the active duty promotion list’’. 
(b) CLERICAL AMENDMENT.—The table of contents for 
chapter 3 of such title is amended by striking the item relat-
ing to section 42 and inserting the following: 
‘‘42. Number and distribution of commissioned officers on the active duty pro-
motion list’’. 
TITLE IV—PERSONNEL 
SEC. 401. LEAVE RETENTION AUTHORITY. 
Section 701(f)(2) of title 10, United States Code, is 
amended by inserting ‘‘or a declaration of a major disaster 
or emergency by the President under the Robert T. Stafford
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Disaster Relief and Emergency Assistance Act (Public Law 
93–288, 42 U.S.C. 5121 et seq.)’’ after ‘‘operation’’. 
SEC. 402. LEGAL ASSISTANCE FOR COAST GUARD RESERV-
ISTS. 
Section 1044(a)(4) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘(as determined by the Secretary 
of Defense),’’ and inserting ‘‘(as determined by the 
Secretary of Defense and the Secretary of the depart-
ment in which the Coast Guard is operating, with re-
spect to the Coast Guard when it is not operating as 
a service of the Navy),’’; and 
(2) by striking ‘‘prescribed by the Secretary of 
Defense,’’ and inserting ‘‘prescribed by Secretary of 
Defense and the Secretary of the department in which 
the Coast Guard is operating, with respect to the 
Coast Guard when it is not operating as a service of 
the Navy,’’. 
SEC. 403. REIMBURSEMENT FOR CERTAIN MEDICAL-RE-
LATED TRAVEL EXPENSES. 
Section 1074i(a) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘IN GENERAL.—In’’ and insert-
ing ‘‘IN GENERAL.—(1) In’’; and 
(2) by adding at the end the following:
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‘‘(2) In any case in which a covered beneficiary resides 
on an INCONUS island that lacks public access roads to 
the mainland and is referred by a primary care physician 
to a specialty care provider on the mainland who provides 
services less than 100 miles from the location in which the 
beneficiary resides, the Secretary shall reimburse the rea-
sonable travel expenses of the covered beneficiary, and, when 
accompaniment by an adult is necessary, for a parent or 
guardian of the covered beneficiary or another member of 
the covered beneficiary’s family who is at least 21 years 
of age.’’. 
SEC. 404. RESERVE COMMISSIONED WARRANT OFFICER TO 
LIEUTENANT PROGRAM. 
Section 214(a) of title 14, United States Code, is 
amended to read as follows: 
‘‘(a) The President may appoint temporary commis-
sioned officers— 
‘‘(1) in the Regular Coast Guard in a grade, not 
above lieutenant, appropriate to their qualifications, 
experience, and length of service, as the needs of the 
Coast Guard may require, from among the commis-
sioned warrant officers, warrant officers, and enlisted 
members of the Coast Guard, and from licensed offi-
cers of the United States merchant marine; and
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‘‘(2) in the Coast Guard Reserve in a grade, not 
above lieutenant, appropriate to their qualifications, 
experience, and length of service, as the needs of the 
Coast Guard may require, from among the commis-
sioned warrant officers of the Coast Guard Reserve.’’. 
SEC. 405. ENHANCED STATUS QUO OFFICER PROMOTION 
SYSTEM. 
(a) Section 253(a) of title 14, United States Code, is 
amended— 
(1) by inserting ‘‘and’’ after ‘‘considered,’’; and 
(2) by striking ‘‘consideration, and the number 
of officers the board may recommend for promotion’’ 
and inserting ‘‘consideration’’. 
(b) Section 258 of such title is amended— 
(1) by inserting ‘‘(a)’’ before ‘‘The Secretary’’; 
and 
(2) by adding at the end the following: 
‘‘(b) In addition to the information provided pursuant 
to subsection (a), the Secretary may furnish the selection 
board— 
‘‘(1) specific direction relating to the needs of the 
service for officers having particular skills, including 
direction relating to the need for a minimum number 
of officers with particular skills within a specialty; 
and
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‘‘(2) such other guidance that the Secretary be-
lieves may be necessary to enable the board to prop-
erly perform its functions. 
Selections made based on the direction and guidance pro-
vided under this subsection shall not exceed the maximum 
percentage of officers who may be selected from below the 
announced promotion zone at any given selection board 
convened under section 251 of this title.’’. 
(c) Section 259(a) of such title is amended by striking 
‘‘board’’ the second place it appears and inserting ‘‘board, 
giving due consideration to the needs of the service for offi-
cers with particular skills so noted in the specific direction 
furnished pursuant to section 258 of this title,’’. 
(d) Section 260(b) of such title is amended by inserting 
‘‘to meet the needs of the service (as noted in the specific 
direction furnished the board under section 258 of this 
title)’’ after ‘‘qualified for promotion’’. 
SEC. 406. APPOINTMENT OF CIVILIAN COAST GUARD 
JUDGES. 
Section 875 of the Homeland Security Act of 2002 (6 
U.S.C. 455) is amended— 
(1) by redesignating subsection (c) as subsection 
(d); and 
(2) by inserting after subsection (b) the fol-
lowing:
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‘‘(c) APPOINTMENT OF JUDGES.—The Secretary may 
appoint civilian employees of the Department of Homeland 
Security as appellate military judges, available for assign-
ment to the Coast Guard Court of Criminal Appeals as pro-
vided for in section 866(a) of title 10, United States Code.’’. 
SEC. 407. COAST GUARD PARTICIPATION IN THE ARMED 
FORCES RETIREMENT HOME SYSTEM. 
(a) ELIGIBILITY UNDER THE ARMED FORCES RETIRE-
MENT HOME ACT.—Section 1502 of the Armed Forces Re-
tirement Home Act of 1991 (24 U.S.C. 401) is amended— 
(1) by striking ‘‘does not include the Coast 
Guard when it is not operating as a service of the 
Navy.’’ in paragraph (4) and inserting ‘‘has the 
meaning given such term in section 101(4) of title 
10.’’; 
(2) by striking ‘‘and’’ in paragraph (5)(C); 
(3) by striking ‘‘Affairs.’’ in paragraph (5)(D) 
and inserting ‘‘Affairs; and’’; 
(4) by adding at the end of paragraph (5) the 
following: 
‘‘(E) the Assistant Commandant of the 
Coast Guard for Human Resources.’’; and 
(5) by adding at the end of paragraph (6) the 
following:
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‘‘(E) The Master Chief Petty Officer of the 
Coast Guard.’’. 
(b) DEDUCTIONS.— 
(1) Section 2772 of title 10, United States Code, 
is amended— 
(A) by striking ‘‘of the military depart-
ment’’ in subsection (a); 
(B) by striking ‘‘Armed Forces Retirement 
Home Board’’ in subsection (b) and inserting 
‘‘Chief Operating Officer of the Armed Forces 
Retirement Home’’; and 
(C) by striking subsection (c). 
(2) Section 1007(i) of title 37, United States 
Code, is amended— 
(A) by striking ‘‘Armed Forces Retirement 
Home Board,’’ in paragraph (3) and inserting 
‘‘Chief Operating Officer of the Armed Forces 
Retirement Home,’’; and 
(B) by striking ‘‘does not include the Coast 
Guard when it is not operating as a service of 
the Navy.’’ in paragraph (4) and inserting ‘‘has 
the meaning given such term in section 101(4) of 
title 10.’’.
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(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on the first day of the first pay pe-
riod beginning on or after January 1, 2010. 
SEC. 408. CREW WAGES ON PASSENGER VESSELS. 
(a) FOREIGN AND INTERCOASTAL VOYAGES.— 
(1) CAP ON PENALTY WAGES.—Section 10313(g) 
of title 46, United States Code, is amended— 
(A) by striking ‘‘When’’ and inserting ‘‘(1) 
Subject to paragraph (2), when’’; and 
(B) by adding at the end the following: 
‘‘(2) The total amount required to be paid under para-
graph (1) with respect to all claims in a class action suit 
by seamen on a passenger vessel capable of carrying more 
than 500 passengers for wages under this section against 
a vessel master, owner, or operator or the employer of the 
seamen shall not exceed 10 times the unpaid wages that 
are the subject of the claims. 
‘‘(3) A class action suit for wages under this subsection 
must be commenced within 3 years after the later of— 
‘‘(A) the date of the end of the last voyage for 
which the wages are claimed; or 
‘‘(B) the receipt, by a seaman who is a claimant 
in the suit, of a payment of wages that are the subject 
of the suit that is made in the ordinary course of em-
ployment.’’.
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(2) DEPOSITS.—Section 10315 of such title is 
amended by adding at the end the following: 
‘‘(f) DEPOSITS IN SEAMAN ACCOUNT.—By written re-
quest signed by the seaman, a seaman employed on a pas-
senger vessel capable of carrying more than 500 passengers 
may authorize the master, owner, or operator of the vessel, 
or the employer of the seaman, to make deposits of wages 
of the seaman into a checking, savings, investment, or re-
tirement account, or other account to secure a payroll or 
debit card for the seaman if— 
‘‘(1) the wages designated by the seaman for such 
deposit are deposited in a United States or inter-
national financial institution designated by the sea-
man; 
‘‘(2) such deposits in the financial institution 
are fully guaranteed under commonly accepted inter-
national standards by the government of the country 
in which the financial institution is licensed; 
‘‘(3) a written wage statement or pay stub, in-
cluding an accounting of any direct deposit, is deliv-
ered to the seaman no less often than monthly; and 
‘‘(4) while on board the vessel on which the sea-
man is employed, the seaman is able to arrange for 
withdrawal of all funds on deposit in the account in 
which the wages are deposited.’’.
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(b) COASTWISE VOYAGES.— 
(1) CAP ON PENALTY WAGES.—Section 10504(c) 
of such title is amended— 
(A) by striking ‘‘When’’ and inserting ‘‘(1) 
Subject to subsection (d), and except as provided 
in paragraph (2), when’’; and 
(B) by adding at the end the following: 
‘‘(2) The total amount required to be paid under para-
graph (1) with respect to all claims in a class action suit 
by seamen on a passenger vessel capable of carrying more 
than 500 passengers for wages under this section against 
a vessel master, owner, or operator or the employer of the 
seamen shall not exceed 10 times the unpaid wages that 
are the subject of the claims. 
‘‘(3) A class action suit for wages under this subsection 
must be commenced within 3 years after the later of— 
‘‘(A) the date of the end of the last voyage for 
which the wages are claimed; or 
‘‘(B) the receipt, by a seaman who is a claimant 
in the suit, of a payment of wages that are the subject 
of the suit that is made in the ordinary course of em-
ployment.’’. 
(2) DEPOSITS.—Section 10504 of such title is 
amended by adding at the end the following:
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‘‘(f) DEPOSITS IN SEAMAN ACCOUNT.—By written re-
quest signed by the seaman, a seaman employed on a pas-
senger vessel capable of carrying more than 500 passengers 
may authorize the master, owner, or operator of the vessel, 
or the employer of the seaman, to make deposits of wages 
of the seaman into a checking, savings, investment, or re-
tirement account, or other account to secure a payroll or 
debit card for the seaman if— 
‘‘(1) the wages designated by the seaman for such 
deposit are deposited in a United States or inter-
national financial institution designated by the sea-
man; 
‘‘(2) such deposits in the financial institution 
are fully guaranteed under commonly accepted inter-
national standards by the government of the country 
in which the financial institution is licensed; 
‘‘(3) a written wage statement or pay stub, in-
cluding an accounting of any direct deposit, is deliv-
ered to the seaman no less often than monthly; and 
‘‘(4) while on board the vessel on which the sea-
man is employed, the seaman is able to arrange for 
withdrawal of all funds on deposit in the account in 
which the wages are deposited.’’.
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SEC. 409. PROTECTION AND FAIR TREATMENT OF SEA-
FARERS. 
(a) IN GENERAL.—Chapter 111 of title 46, United 
States Code, is amended by adding at the end the following 
new section: 
‘‘§ 11113. Protection and fair treatment of seafarers 
‘‘(a) PURPOSE.—The purpose of this section is to en-
sure the protection and fair treatment of seafarers. 
‘‘(b) FUND.— 
‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury a special fund known as the ‘Support of 
Seafarers Fund’. 
‘‘(2) USE OF AMOUNTS IN FUND.—The amounts 
covered into the Fund shall be available to the Sec-
retary, without further appropriation and without 
fiscal year limitation, to— 
‘‘(A) pay necessary support, pursuant to 
subsection (c)(1)(A) of this section; and 
‘‘(B) reimburse a shipowner for necessary 
support, pursuant to subsection (c)(1)(B) of this 
section. 
‘‘(3) AMOUNTS CREDITED TO FUND.—Notwith-
standing any other provision of law, the Fund may 
receive—
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‘‘(A) any moneys ordered to be paid to the 
Fund in the form of community service pursuant 
to section 3563(b) of title 18; 
‘‘(B) amounts reimbursed or recovered pur-
suant to subsection (d) of this section; 
‘‘(C) amounts appropriated to the Fund 
pursuant to subsection (g) of this section; and 
‘‘(D) appropriations available to the Sec-
retary for transfer. 
‘‘(4) PREREQUISITE
FOR
COMMUNITY
SERVICE 
CREDITS.—The Fund may receive credits pursuant to 
paragraph (3)(A) of this subsection only when the un-
obligated balance of the Fund is less than $5,000,000. 
‘‘(5) REPORT REQUIRED.— 
‘‘(A) Except as provided in subparagraph 
(B) of this paragraph, the Secretary shall not ob-
ligate any amount in the Fund in a given fiscal 
year unless the Secretary has submitted to Con-
gress, concurrent with the President’s budget sub-
mission for that fiscal year, a report that de-
scribes— 
‘‘(i) the amounts credited to the Fund, 
pursuant to paragraph (3) of this sub-
section, for the preceding fiscal year;
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‘‘(ii) a detailed description of the ac-
tivities for which amounts were charged; 
and 
‘‘(iii) the projected level of expenditures 
from the Fund for the coming fiscal year, 
based on— 
‘‘(I) on-going activities; and 
‘‘(II) new cases, derived from his-
toric data. 
‘‘(B) The limitation in subparagraph (A) of 
this paragraph shall not apply to obligations 
during the first fiscal year during which 
amounts are credited to the Fund. 
‘‘(6) FUND MANAGER.—The Secretary shall des-
ignate a Fund manager, who shall— 
‘‘(A) ensure the visibility and account-
ability of transactions utilizing the Fund; 
‘‘(B) prepare the report required by para-
graph (5); and 
‘‘(C) monitor the unobligated balance of the 
Fund and provide notice to the Secretary and 
the Attorney General whenever the unobligated 
balance of the Fund is less than $5,000,000. 
‘‘(c) IN GENERAL.—
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‘‘(1) AUTHORITY.—The Secretary is author-
ized— 
‘‘(A) to pay, in whole or in part, without 
further appropriation and without fiscal year 
limitation, from amounts in the Fund, necessary 
support of— 
‘‘(i) any seafarer who enters, remains, 
or has been paroled into the United States 
and is involved in an investigation, report-
ing, documentation, or adjudication of any 
matter that is related to the administration 
or enforcement of any treaty, law, or regu-
lation by the Coast Guard; and 
‘‘(ii) any seafarer whom the Secretary 
finds to have been abandoned in the United 
States; and 
‘‘(B) to reimburse, in whole or in part, 
without further appropriation and without fiscal 
year limitation, from amounts in the Fund, a 
shipowner, who has filed a bond or surety satis-
factory pursuant to subparagraph (A) and pro-
vided necessary support of a seafarer who has 
been paroled into the United States to facilitate 
an investigation, reporting, documentation, or 
adjudication of any matter that is related to the
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administration or enforcement of any treaty, 
law, or regulation by the Coast Guard, for costs 
of necessary support, when the Secretary deems 
reimbursement necessary to avoid serious injus-
tice. 
‘‘(2) LIMITATION.—Nothing in this section shall 
be construed— 
‘‘(A) to create a right, benefit, or entitle-
ment to necessary support; or 
‘‘(B) to compel the Secretary to pay, or re-
imburse the cost of, necessary support. 
‘‘(d) REIMBURSEMENTS; RECOVERY.— 
‘‘(1) IN GENERAL.—Any shipowner shall reim-
burse the Fund an amount equal to the total amount 
paid from the Fund for necessary support of the sea-
farer, plus a surcharge of 25 percent of such total 
amount if— 
‘‘(A)(i) the shipowner, during the course of 
an investigation, reporting, documentation, or 
adjudication of any matter that the Coast Guard 
referred to a United States Attorney or the At-
torney General, fails to provide necessary sup-
port of a seafarer who has been paroled into the 
United States to facilitate the investigation, re-
porting, documentation, or adjudication; and
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‘‘(ii) a criminal penalty is subsequently im-
posed against the shipowner; or 
‘‘(B) 
the 
shipowner, 
under 
any 
cir-
cumstance, abandons a seafarer in the United 
States, as decided by the Secretary. 
‘‘(2) ENFORCEMENT.—If a shipowner fails to re-
imburse the Fund as required under paragraph (1) of 
this subsection, the Secretary may— 
‘‘(A) proceed in rem against any vessel of 
the shipowner in the Federal district court for 
the district in which such vessel is found; and 
‘‘(B) withhold or revoke the clearance, re-
quired by section 60105 of this title, of any vessel 
of the shipowner wherever such vessel is found. 
‘‘(3) Whenever clearance is withheld or revoked 
pursuant to paragraph (2)(B) of this subsection, 
clearance may be granted if the shipowner reimburses 
the Fund the amount required under paragraph (1) 
of this subsection. 
‘‘(e) SURETY; ENFORCEMENT
OF TREATIES, LAWS, 
AND REGULATIONS.— 
‘‘(1) BOND AND SURETY AUTHORITY.—The Sec-
retary is authorized to require a bond or surety satis-
factory as an alternative to withholding or revoking 
clearance required under section 60105 of this title if,
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in the opinion of the Secretary, such bond or surety 
satisfactory is necessary to facilitate an investigation, 
reporting, documentation, or adjudication of any 
matter that is related to the administration or en-
forcement of any treaty, law, or regulation by the 
Coast Guard if the surety corporation providing the 
bond is authorized by the Secretary of the Treasury 
under section 9305 of title 31 to provide surety bonds 
under section 9304 of that title. 
‘‘(2) APPLICATION.—The authority to require a 
bond or a surety satisfactory or to request the with-
holding or revocation of the clearance required under 
section 60105 of this title applies to any investiga-
tion, reporting, documentation, or adjudication of 
any matter that is related to the administration or 
enforcement of any treaty, law, or regulation by the 
Coast Guard. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) ABANDONS; ABANDONED.—The term ‘aban-
dons’ or ‘abandoned’ means a shipowner’s unilateral 
severance of ties with a seafarer or the shipowner’s 
failure to provide necessary support of a seafarer. 
‘‘(2) BOND
OR
SURETY
SATISFACTORY.—The 
term ‘bond or surety satisfactory’ means a negotiated 
instrument, the terms of which may, at the discretion
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of the Secretary, include provisions that require the 
shipowner to— 
‘‘(A) provide necessary support of a seafarer 
who has or may have information pertinent to 
an investigation, reporting, documentation, or 
adjudication of any matter that is related to the 
administration or enforcement of any treaty, 
law, or regulation by the Secretary; 
‘‘(B) facilitate an investigation, reporting, 
documentation, or adjudication of any matter 
that is related to the administration or enforce-
ment of any treaty, law, or regulation by the 
Secretary; 
‘‘(C) stipulate to certain incontrovertible 
facts, including, but not limited to, the owner-
ship or operation of the vessel, or the authen-
ticity of documents and things from the vessel; 
‘‘(D) facilitate service of correspondence and 
legal papers; 
‘‘(E) enter an appearance in United States 
district court; 
‘‘(F) comply with directions regarding pay-
ment of funds; 
‘‘(G) name an agent in the United States 
for service of process;
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‘‘(H) make stipulations as to the authen-
ticity of certain documents in United States dis-
trict court; 
‘‘(I) provide assurances that no discrimina-
tory or retaliatory measures will be taken 
against a seafarer involved in an investigation, 
reporting, documentation, or adjudication of any 
matter that is related to the administration or 
enforcement of any treaty, law, or regulation by 
the Secretary; 
‘‘(J) provide financial security in the form 
of cash, bond, or other means acceptable to the 
Secretary; and 
‘‘(K) provide for any other appropriate 
measures as the Secretary considers necessary to 
ensure the Government is not prejudiced by 
granting the clearance required by section 60105 
of title 46. 
‘‘(3) FUND.—The term ‘Fund’ means the Sup-
port of Seafarers Fund, established pursuant to this 
section. 
‘‘(4) NECESSARY SUPPORT.—The term ‘necessary 
support’ means normal wages, lodging, subsistence, 
clothing, medical care (including hospitalization), re-
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patriation, and any other expense the Secretary 
deems appropriate. 
‘‘(5) SEAFARER.—The term ‘seafarer’ means an 
alien crewman who is employed or engaged in any 
capacity on board a vessel subject to the jurisdiction 
of the United States. 
‘‘(6) SHIPOWNER.—The term ‘shipowner’ means 
the individual or entity that owns, has an ownership 
interest in, or operates a vessel subject to the jurisdic-
tion of the United States. 
‘‘(7) VESSEL SUBJECT TO THE JURISDICTION OF 
THE UNITED STATES.—The term ‘vessel subject to the 
jurisdiction of the United States’ has the same mean-
ing it has in section 70502(c) of this title, except that 
it excludes a vessel owned or bareboat chartered and 
operated by the United States, by a State or political 
subdivision thereof, or by a foreign nation, except 
when that vessel is engaged in commerce. 
‘‘(g) REGULATIONS.—The Secretary may prescribe 
regulations to implement this section. 
‘‘(h) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Fund $1,500,000 
for each of fiscal years 2010, 2011, and 2012.’’.
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(b) CLERICAL AMENDMENT.—The chapter analysis for 
chapter 111 of title 46, United States Code, is amended by 
adding at the end the following new item: 
‘‘11113. Protection and fair treatment of seafarers’’. 
TITLE V—ACQUISITION REFORM 
SEC. 501. CHIEF ACQUISITION OFFICER. 
(a) IN GENERAL.—Chapter 3 of title 14, United States 
Code, is amended by adding at the end the following: 
‘‘§ 55. Chief Acquisition Officer 
‘‘(a) IN GENERAL.—There shall be in the Coast Guard 
a Chief Acquisition Officer selected by the Commandant 
who shall be a Rear Admiral or civilian from the Senior 
Executive Service (career reserved). The Chief Acquisition 
Officer shall serve at the Assistant Commandant level and 
have acquisition management as that individual’s primary 
duty. 
‘‘(b) QUALIFICATIONS.—The Chief Acquisition Officer 
shall be an acquisition professional with a Level III certifi-
cation and must have at least 10 years experience in an 
acquisition position, of which at least 4 years were spent 
as— 
‘‘(1) the program executive officer; 
‘‘(2) the program manager of a Level 1 or Level 
2 acquisition project or program; 
‘‘(3) the deputy program manager of a Level 1 
or Level 2 acquisition; or
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‘‘(4) a combination of such positions. 
‘‘(c) FUNCTIONS OF THE CHIEF ACQUISITION OFFI-
CER.—The functions of the Chief Acquisition Officer in-
clude— 
‘‘(1) monitoring the performance of programs 
and projects on the basis of applicable performance 
measurements 
and 
advising 
the 
Commandant, 
through the chain of command, regarding the appro-
priate business strategy to achieve the missions of the 
Coast Guard; 
‘‘(2) maximizing the use of full and open com-
petition at the prime contract and subcontract levels 
in the acquisition of property, capabilities, and serv-
ices by the Coast Guard by establishing policies, pro-
cedures, and practices that ensure that the Coast 
Guard receives a sufficient number of competitive 
proposals from responsible sources to fulfill the Gov-
ernment’s requirements, including performance and 
delivery schedules, at the lowest cost or best value con-
sidering the nature of the property or service pro-
cured; 
‘‘(3) making acquisition decisions in concurrence 
with the technical authority, or technical authorities, 
as appropriate, of the Coast Guard, as designated by 
the Commandant, consistent with all other applicable
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laws and decisions establishing procedures within the 
Coast Guard; 
‘‘(4) ensuring the use of detailed performance 
specifications in instances in which performance 
based contracting is used; 
‘‘(5) managing the direction of acquisition policy 
for the Coast Guard, including implementation of the 
unique acquisition policies, regulations, and stand-
ards of the Coast Guard; 
‘‘(6) developing and maintaining an acquisition 
career management program in the Coast Guard to 
ensure that there is an adequate acquisition work-
force; 
‘‘(7) assessing the requirements established for 
Coast Guard personnel regarding knowledge and skill 
in acquisition resources and management and the 
adequacy of such requirements for facilitating the 
achievement of the performance goals established for 
acquisition management; 
‘‘(8) developing strategies and specific plans for 
hiring, training, and professional development; and 
‘‘(9) reporting to the Commandant, through the 
chain of command, on the progress made in improv-
ing acquisition management capability.’’.
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(b) CLERICAL AMENDMENT.—The table of contents for 
chapter 3 of title 14, United States Code, is amended by 
adding at the end the following: 
‘‘55. Chief Acquisition Officer’’. 
(c) SELECTION DEADLINE.—As soon as practicable 
after the date of enactment of this Act, but no later than 
October 1, 2011, the Commandant of the Coast Guard shall 
select a Chief Acquisition Officer under section 55 of title 
14, United States Code. 
SEC. 502. ACQUISITIONS. 
(a) IN GENERAL.—Part I of title 14, United States 
Code, is amended by inserting after chapter 13 the fol-
lowing: 
‘‘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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‘‘(4) appropriate senior staff members for each 
assigned field activity or command; and 
‘‘(5) any other Coast Guard officer or employee 
designated by the Commandant. 
‘‘(b) FUNCTION.—The senior acquisition leadership 
team shall— 
‘‘(1) meet at the call of the Commandant at such 
places and such times as the Commandant may re-
quire; 
‘‘(2) provide advice and information on oper-
ational and performance requirements of the Coast 
Guard; 
‘‘(3) identify gaps and vulnerabilities in the 
operational readiness of the Coast Guard; 
‘‘(4) make recommendations to the Commandant 
and the Chief Acquisition Officer to remedy the iden-
tified gaps and vulnerabilities in the operational 
readiness of the Coast Guard; and 
‘‘(5) contribute to the development of a profes-
sional, experienced acquisition workforce by providing 
acquisition-experience tours of duty and educational 
development for officers and employees of the Coast 
Guard.
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‘‘§ 563. Improvements in Coast Guard acquisition 
management 
‘‘(a) PROJECT AND PROGRAM MANAGERS.— 
‘‘(1) PROJECT
OR
PROGRAM
MANAGER
DE-
FINED.—In this section, the term ‘project or program 
manager’ means an individual designated— 
‘‘(A) to develop, produce, and deploy a new 
asset to meet identified operational requirements; 
and 
‘‘(B) to manage cost, schedule, and perform-
ance of the acquisition or project or program. 
‘‘(2) LEVEL 1 PROJECTS.— An individual may 
not be assigned as the project or program manager for 
a Level 1 acquisition unless the individual holds a 
Level III acquisition certification as a program man-
ager. 
‘‘(3) LEVEL 2 PROJECTS.—An individual may 
not be assigned as the project or program manager for 
a Level 2 acquisition unless the individual holds a 
Level II acquisition certification as a program man-
ager. 
‘‘(b) GUIDANCE ON TENURE AND ACCOUNTABILITY OF 
PROGRAM AND PROJECT MANAGERS.—Not later than one 
year after the date of enactment of the Coast Guard Author-
ization Act for Fiscal years 2010 and 2011, the Com-
mandant shall issue guidance to address the qualifications,
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resources, responsibilities, tenure, and accountability of 
program and project managers for the management of ac-
quisition programs and projects. The guidance shall ad-
dress, at a minimum— 
‘‘(1) the qualifications required for project or 
program managers, including the number of years of 
acquisition experience and the professional training 
levels to be required of those appointed to project or 
program management positions; and 
‘‘(2) authorities available to project or program 
managers, including, to the extent appropriate, the 
authority to object to the addition of new program re-
quirements that would be inconsistent with the pa-
rameters established for an acquisition program. 
‘‘(c) ACQUISITION WORKFORCE.— 
‘‘(1) IN GENERAL.—The Commandant shall des-
ignate a sufficient number of positions to be in the 
Coast Guard’s acquisition workforce to perform acqui-
sition-related functions at Coast Guard headquarters 
and field activities. 
‘‘(2) REQUIRED POSITIONS.—The Commandant 
shall ensure that members of the acquisition workforce 
have expertise, education, and training in at least 1 
of the following acquisition career fields: 
‘‘(A) Acquisition logistics.
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‘‘(B) Auditing. 
‘‘(C) Business, cost estimating, and finan-
cial management. 
‘‘(D) Contracting. 
‘‘(E) Facilities engineering. 
‘‘(F) Industrial or contract property man-
agement. 
‘‘(G) Information technology. 
‘‘(H) Manufacturing, production, and qual-
ity assurance. 
‘‘(I) Program management. 
‘‘(J) Purchasing. 
‘‘(K) Science and technology. 
‘‘(L) Systems planning, research, develop-
ment, and engineering. 
‘‘(M) Test and evaluation. 
‘‘(3) ACQUISITION WORKFORCE EXPEDITED HIR-
ING AUTHORITY.— 
‘‘(A) IN GENERAL.—For purposes of sections 
3304, 5333, and 5753 of title 5, the Com-
mandant may— 
‘‘(i) designate any category of acquisi-
tion positions within the Coast Guard as 
shortage category positions; and
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‘‘(ii) use the authorities in such sec-
tions to recruit and appoint highly quali-
fied person directly to positions so des-
ignated. 
‘‘(B) LIMITATION.—The Commandant may 
not appoint a person to a position of employ-
ment under this paragraph after September 30, 
2012. 
‘‘(d) MANAGEMENT INFORMATION SYSTEM.— 
‘‘(1) IN GENERAL.—The Commandant shall es-
tablish a management information system capability 
to improve acquisition workforce management and re-
porting. 
‘‘(2) INFORMATION
MAINTAINED.—Information 
maintained with such capability shall include the fol-
lowing standardized information on individuals as-
signed to positions in the workforce: 
‘‘(A) Qualifications, assignment history, 
and tenure of those individuals assigned to posi-
tions in the acquisition workforce or holding ac-
quisition-related certifications. 
‘‘(B) Promotion rates for officers and mem-
bers of the Coast Guard in the acquisition work-
force.
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‘‘(e) CAREER PATHS.—To establish acquisition man-
agement as a core competency of the Coast Guard, the Com-
mandant shall— 
‘‘(1) ensure that career paths for officers, mem-
bers, and employees of the Coast Guard who wish to 
pursue careers in acquisition are identified in terms 
of the education, training, experience, and assign-
ments necessary for career progression of those offi-
cers, members, and employees to the most senior posi-
tions in the acquisition workforce; and 
‘‘(2) publish information on such career paths. 
‘‘§ 564. Recognition of Coast Guard personnel for ex-
cellence in acquisition 
‘‘(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of the Coast Guard Authorization Act for 
Fiscal Years 2010 and 2011, the Commandant shall com-
mence implementation of a program to recognize excellent 
performance by individuals and teams comprised of officers, 
members, and employees of the Coast Guard that contrib-
uted to the long-term success of a Coast Guard acquisition 
project or program. 
‘‘(b) ELEMENTS.—The program shall include— 
‘‘(1) specific award categories, criteria, and eli-
gibility and manners of recognition;
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‘‘(2) procedures for the nomination by personnel 
of the Coast Guard of individuals and teams com-
prised of officers, members, and employees of the 
Coast Guard for recognition under the program; and 
‘‘(3) procedures for the evaluation of nomina-
tions for recognition under the program by one or 
more panels of individuals from the Government, aca-
demia, and the private sector who have such expertise 
and are appointed in such manner as the Com-
mandant shall establish for the purposes of this pro-
gram. 
‘‘(c) AWARD OF CASH BONUSES.—As part of the pro-
gram required by subsection (a), the Commandant, subject 
to the availability of appropriations, may award to any 
civilian employee recognized pursuant to the program a 
cash bonus to the extent that the performance of such indi-
vidual so recognized warrants the award of such bonus. 
‘‘§ 565. Prohibition on use of lead systems integrators 
‘‘(a) IN GENERAL.— 
‘‘(1) USE OF LEAD SYSTEMS INTEGRATOR.—Ex-
cept as provided in subsection (b), the Commandant 
may not use a private sector entity as a lead systems 
integrator for an acquisition contract awarded or de-
livery order or task order issued after the date of en-
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actment of the Coast Guard Authorization Act for 
Fiscal Years 2010 and 2011. 
‘‘(2) FULL AND OPEN COMPETITION.—The Com-
mandant and any lead systems integrator engaged by 
the Coast Guard, pursuant to the exceptions described 
in subsection (b), shall use full and open competition 
for any acquisition contract awarded after the date of 
enactment of that Act, unless otherwise excepted in 
accordance with the Competition in Contracting Act 
of 1984 (41 U.S.C. 251 note), the amendments made 
by that Act, and the Federal Acquisition Regulations. 
‘‘(3) NO EFFECT ON SMALL BUSINESS ACT.— 
Nothing in this subsection shall be construed to super-
sede or otherwise affect the authorities provided by 
and under the Small Business Act (15 U.S.C. 631 et 
seq.). 
‘‘(b) EXCEPTIONS.— 
‘‘(1) NATIONAL DISTRESS AND RESPONSE SYS-
TEM MODERNIZATION PROGRAM; NATIONAL SECURITY 
CUTTERS 2 AND 3.—Notwithstanding subsection (a), 
the Commandant may use a private sector entity as 
a lead systems integrator for the Coast Guard to com-
plete the National Distress and Response System 
Modernization Program, the C4ISR projects directly 
related to the Integrated Deepwater Program, and
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National Security Cutters 2 and 3 if the Secretary of 
Homeland Security certifies that— 
‘‘(A) the acquisition is in accordance with 
the Competition in Contracting Act of 1984 (41 
U.S.C. 251 note), the amendments made by that 
Act, and the Federal Acquisition Regulations; 
and 
‘‘(B) the acquisition and the use of a pri-
vate sector entity as a lead systems integrator for 
the acquisition is in the best interest of the Fed-
eral Government. 
‘‘(2) TERMINATION DATE FOR EXCEPTIONS.—Ex-
cept for the modification of delivery or task orders 
pursuant to Parts 4 and 42 of the Federal Acquisi-
tion Regulations, the Commandant may not use a 
private sector entity as a lead systems integrator after 
the earlier of— 
‘‘(A) September 30, 2012; or 
‘‘(B) the date on which the Commandant 
certifies in writing to the appropriate congres-
sional committees that the Coast Guard has 
available and can retain sufficient contracting 
personnel and expertise within the Coast Guard, 
through an arrangement with other Federal 
agencies, or through contracts or other arrange-
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ments with private sector entities, to perform the 
functions and responsibilities of the lead system 
integrator in an efficient and cost-effective man-
ner. 
‘‘§ 566. Required contract terms 
‘‘(a) IN GENERAL.—The Commandant shall ensure 
that a contract awarded or a delivery order or task order 
issued for an acquisition of a capability or an asset with 
an expected service life of 10 years and with a total acquisi-
tion cost that is equal to or exceeds $10,000,000 awarded 
or issued by the Coast Guard after the date of enactment 
of the Coast Guard Authorization Act for Fiscal Years 2010 
and 2011— 
‘‘(1) provides that all certifications for an end- 
state capability or asset under such contract, delivery 
order, or task order, respectively, will be conducted by 
the Commandant or an independent third party, and 
that self-certification by a contractor or subcontractor 
is not allowed; 
‘‘(2) requires that the Commandant shall main-
tain the authority to establish, approve, and main-
tain technical requirements; 
‘‘(3) requires that any measurement of contractor 
and subcontractor performance be based on the status 
of all work performed, including the extent to which
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the work performed met all performance, cost, and 
schedule requirements; 
‘‘(4) specifies that, for the acquisition or upgrade 
of air, surface, or shore capabilities and assets for 
which compliance with TEMPEST certification is a 
requirement, the standard for determining such com-
pliance will be the air, surface, or shore standard then 
used by the Department of the Navy for that type of 
capability or asset; and 
‘‘(5) for any contract awarded to acquire an Off-
shore Patrol Cutter, includes provisions specifying the 
service life, fatigue life, and days underway in gen-
eral Atlantic and North Pacific Sea conditions, max-
imum range, and maximum speed the cutter will be 
built to achieve. 
‘‘(b) PROHIBITED CONTRACT PROVISIONS.—The Com-
mandant shall ensure that any contract awarded or deliv-
ery order or task order issued by the Coast Guard after the 
date of enactment of the Coast Guard Authorization Act for 
Fiscal Years 2010 and 2011 does not include any provision 
allowing for equitable adjustment that is not consistent with 
the Federal Acquisition Regulations. 
‘‘(c) INTEGRATED PRODUCT TEAMS.—Integrated prod-
uct teams, and all teams that oversee integrated product
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teams, shall be chaired by officers, members, or employees 
of the Coast Guard. 
‘‘(d) DEEPWATER TECHNICAL AUTHORITIES.—The 
Commandant shall maintain or designate the technical au-
thorities to establish, approve, and maintain technical re-
quirements. Any such designation shall be made in writing 
and may not be delegated to the authority of the Chief Ac-
quisition Officer established by section 55 of this title. 
‘‘§ 567. Department of Defense consultation 
‘‘(a) IN GENERAL.—The Commandant shall make ar-
rangements as appropriate with the Secretary of Defense 
for support in contracting and management of Coast Guard 
acquisition programs. The Commandant shall also seek op-
portunities to make use of Department of Defense contracts, 
and contracts of other appropriate agencies, to obtain the 
best possible price for assets acquired for the Coast Guard. 
‘‘(b) INTER-SERVICE TECHNICAL ASSISTANCE.—The 
Commandant shall seek to enter into a memorandum of un-
derstanding or a memorandum of agreement with the Sec-
retary of the Navy to obtain the assistance of the Office of 
the Assistant Secretary of the Navy for Research, Develop-
ment, and Acquisition, including the Navy Systems Com-
mand, with the oversight of Coast Guard major acquisition 
programs. The memorandum of understanding or memo-
randum of agreement shall, at a minimum, provide for—
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‘‘(1) the exchange of technical assistance and 
support that the Assistant Commandants for Acquisi-
tion, Human Resources, Engineering, and Informa-
tion technology may identify; 
‘‘(2) the use, as appropriate, of Navy technical 
expertise; and 
‘‘(3) the exchange of personnel between the Coast 
Guard and the Office of the Assistant Secretary of the 
Navy for Research, Development, and Acquisition, in-
cluding Naval Systems Commands, to facilitate the 
development of organic capabilities in the Coast 
Guard. 
‘‘(c) TECHNICAL REQUIREMENT APPROVAL PROCE-
DURES.—The Chief Acquisition Officer shall adopt, to the 
extent practicable, procedures modeled after those used by 
the Navy Senior Acquisition Official to approve all tech-
nical requirements. 
‘‘§ 568. Undefinitized contractual actions 
‘‘(a) IN GENERAL.—The Coast Guard may not enter 
into an undefinitized contractual action unless such action 
is directly approved by the Head of Contracting Activity 
of the Coast Guard. 
‘‘(b) REQUESTS FOR UNDEFINITIZED CONTRACTUAL 
ACTIONS.—Any request to the Head of Contracting Activity 
for approval of an undefinitized contractual action shall
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include a description of the anticipated effect on require-
ments of the Coast Guard if a delay is incurred for the 
purposes of determining contractual terms, specifications, 
and price before performance is begun under the contractual 
action. 
‘‘(c) REQUIREMENTS FOR UNDEFINITIZED CONTRAC-
TUAL ACTIONS.— 
‘‘(1) DEADLINE
FOR
AGREEMENT
ON
TERMS, 
SPECIFICATIONS, AND PRICE.—A contracting officer of 
the Coast Guard may not enter into an undefinitized 
contractual action unless the contractual action pro-
vides for agreement upon contractual terms, specifica-
tion, and price by the earlier of— 
‘‘(A) the end of the 180-day period begin-
ning on the date on which the contractor submits 
a qualifying proposal to definitize the contrac-
tual terms, specifications, and price; or 
‘‘(B) the date on which the amount of funds 
obligated under the contractual action is equal to 
more than 50 percent of the negotiated overall 
ceiling price for the contractual action. 
‘‘(2) LIMITATION ON OBLIGATIONS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the contracting officer for an 
undefinitized contractual action may not obli-
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gate under such contractual action an amount 
that exceeds 50 percent of the negotiated overall 
ceiling price until the contractual terms, speci-
fications, and price are definitized for such con-
tractual action. 
‘‘(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), if a contractor submits a quali-
fying proposal to definitize an undefinitized con-
tractual action before an amount that exceeds 50 
percent of the negotiated overall ceiling price is 
obligated on such action, the contracting officer 
for such action may not obligate with respect to 
such contractual action an amount that exceeds 
75 percent of the negotiated overall ceiling price 
until the contractual terms, specifications, and 
price are definitized for such contractual action. 
‘‘(3) WAIVER.—The Commandant may waive the 
application of this subsection with respect to a con-
tract if the Commandant determines that the waiver 
is necessary to support— 
‘‘(A) a contingency operation (as that term 
is defined in section 101(a)(13) of title 10); 
‘‘(B) operations to prevent or respond to a 
transportation security incident (as defined in 
section 70101(6) of title 46);
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‘‘(C) an operation in response to an emer-
gency that poses an unacceptable threat to 
human health or safety or to the marine environ-
ment; or 
‘‘(D) an operation in response to a natural 
disaster or major disaster or emergency des-
ignated by the President under the Robert T. 
Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5121 et seq.). 
‘‘(4) LIMITATION
ON
APPLICATION.—This sub-
section does not apply to an undefinitized contractual 
action for the purchase of initial spares. 
‘‘(d) INCLUSION OF NONURGENT REQUIREMENTS.— 
Requirements for spare parts and support equipment that 
are not needed on an urgent basis may not be included in 
an undefinitized contractual action by the Coast Guard for 
spare parts and support equipment that are needed on an 
urgent basis unless the Commandant approves such inclu-
sion as being— 
‘‘(1) good business practice; and 
‘‘(2) in the best interests of the United States. 
‘‘(e) MODIFICATION
OF SCOPE.—The scope of an 
undefinitized contractual action under which performance 
has begun may not be modified unless the Commandant ap-
proves such modification as being—
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‘‘(1) good business practice; and 
‘‘(2) in the best interests of the United States. 
‘‘(f) ALLOWABLE PROFIT.—The Commandant shall en-
sure that the profit allowed on an undefinitized contractual 
action for which the final price is negotiated after a sub-
stantial portion of the performance required is completed 
reflects— 
‘‘(1) the possible reduced cost risk of the con-
tractor with respect to costs incurred during perform-
ance of the contract before the final price is nego-
tiated; and 
‘‘(2) the reduced cost risk of the contractor with 
respect to costs incurred during performance of the re-
maining portion of the contract. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) UNDEFINITIZED CONTRACTUAL ACTION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘undefinitized con-
tractual action’ means a new procurement action 
entered into by the Coast Guard for which the 
contractual terms, specifications, or price are not 
agreed upon before performance is begun under 
the action.
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‘‘(B) EXCLUSION.—The term ‘undefinitized 
contractual action’ does not include contractual 
actions with respect to— 
‘‘(i) foreign military sales; 
‘‘(ii) purchases in an amount not in 
excess of the amount of the simplified acqui-
sition threshold; or 
‘‘(iii) special access programs. 
‘‘(2) QUALIFYING PROPOSAL.—The term ‘quali-
fying proposal’ means a proposal that contains suffi-
cient information to enable complete and meaningful 
audits of the information contained in the proposal as 
determined by the contracting officer. 
‘‘SUBCHAPTER 2—IMPROVED ACQUISITION PROCESS AND 
PROCEDURES 
‘‘§ 571. Identification of major system acquisitions 
‘‘(a) IN GENERAL.— 
‘‘(1) SUPPORT MECHANISMS.—The Commandant 
shall develop and implement mechanisms to support 
the establishment of mature and stable operational re-
quirements for acquisitions under this subchapter. 
‘‘(2) MISSION ANALYSIS; AFFORDABILITY ASSESS-
MENT.—The Commandant may not initiate a Level 1 
or Level 2 acquisition project or program until the 
Commandant—
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‘‘(A) completes a mission analysis that— 
‘‘(i) identifies any gaps in capability; 
and 
‘‘(ii) develops a clear mission need; 
and 
‘‘(B) prepares a preliminary affordability 
assessment for the project or program. 
‘‘(b) ELEMENTS.— 
‘‘(1) REQUIREMENTS.—The mechanisms required 
by subsection (a) shall ensure the implementation of 
a formal process for the development of a mission- 
needs statement, concept-of-operations document, ca-
pability development plan, and resource proposal for 
the initial project or program funding, and shall en-
sure the project or program is included in the Coast 
Guard Capital Investment Plan. 
‘‘(2) ASSESSMENT
OF
TRADE-OFFS.—In con-
ducting an affordability assessment under subsection 
(a)(2)(B), the Commandant shall develop and imple-
ment mechanisms to ensure that trade-offs among 
cost, schedule, and performance are considered in the 
establishment of preliminary operational require-
ments for development and production of new assets 
and capabilities for Level 1 and Level 2 acquisitions 
projects and programs.
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‘‘(c) HUMAN RESOURCE CAPITAL PLANNING.—The 
Commandant shall develop staffing predictions, define 
human capital performance initiatives, and identify pre-
liminary training needs for any such project or program. 
‘‘(d) DHS ACQUISITION APPROVAL.—A Level 1 or 
Level 2 acquisition project or program may not be imple-
mented unless it is approved by the Department of Home-
land Security Acquisition Review Board or the Joint Re-
view Board. 
‘‘§ 572. Acquisition 
‘‘(a) IN GENERAL.—The Commandant may not estab-
lish a Level 1 or Level 2 acquisition project or program 
approved under section 571(d) until the Commandant— 
‘‘(1) clearly defines the operational requirements 
for the project or program; 
‘‘(2) establishes the feasibility of alternatives; 
‘‘(3) develops an acquisition project or program 
baseline; 
‘‘(4) produces a life-cycle cost estimate; and 
‘‘(5) assesses the relative merits of alternatives to 
determine a preferred solution in accordance with the 
requirements of this section. 
‘‘(b) ANALYSIS OF ALTERNATIVES.— 
‘‘(1) IN GENERAL.—The Commandant shall con-
duct an analysis of alternatives for the asset or capa-
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bility to be acquired in an analyze and select phase 
of the acquisition process. 
‘‘(2) REQUIREMENTS.—The analysis of alter-
natives shall be conducted by a federally funded re-
search and development center, a qualified entity of 
the Department of Defense, or a similar independent 
third party entity that has appropriate acquisition 
expertise and has no substantial financial interest in 
any part of the acquisition project or program that 
is the subject of the analysis. At a minimum, the 
analysis of alternatives shall include— 
‘‘(A) an assessment of the technical matu-
rity, and technical and other risks; 
‘‘(B) an examination of capability, inter-
operability, and other disadvantages; 
‘‘(C) an evaluation of whether different 
combinations or quantities of specific assets or 
capabilities could meet the Coast Guard’s overall 
performance needs; 
‘‘(D) a discussion of key assumptions and 
variables, and sensitivity to change in such as-
sumptions and variables; 
‘‘(E) when an alternative is an existing 
asset or prototype, an evaluation of relevant safe-
ty and performance records and costs;
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‘‘(F) a calculation of life-cycle costs includ-
ing— 
‘‘(i) an examination of likely research 
and development costs and the levels of un-
certainty associated with such estimated 
costs; 
‘‘(ii) an examination of likely produc-
tion and deployment costs and levels of un-
certainty associated with such estimated 
costs; 
‘‘(iii) an examination of likely oper-
ating and support costs and the levels of 
uncertainty associated with such estimated 
costs; 
‘‘(iv) if they are likely to be signifi-
cant, an examination of likely disposal costs 
and the levels of uncertainty associated with 
such estimated costs; and 
‘‘(v) such additional measures as the 
Commandant or the Secretary of Homeland 
Security determines to be necessary for ap-
propriate evaluation of the asset; and 
‘‘(G) the business case for each viable alter-
native. 
‘‘(c) TEST AND EVALUATION MASTER PLAN.—
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‘‘(1) IN GENERAL.—For any Level 1 or Level 2 
acquisition project or program the Chief Acquisition 
Officer shall approve a test and evaluation master 
plan specific to the acquisition project or program for 
the capability, asset, or subsystems of the capability 
or asset and intended to minimize technical, cost, and 
schedule risk as early as practicable in the develop-
ment of the project or program. 
‘‘(2) TEST
AND
EVALUATION
STRATEGY.—The 
master plan shall— 
‘‘(A) set forth an integrated test and evalua-
tion strategy that will verify that capability-level 
or asset-level and subsystem-level design and de-
velopment, 
including 
performance 
and 
supportability, have been sufficiently proven be-
fore the capability, asset, or subsystem of the ca-
pability or asset is approved for production; and 
‘‘(B) require that adequate developmental 
tests and evaluations and operational tests and 
evaluations established under subparagraph (A) 
are performed to inform production decisions. 
‘‘(3) OTHER
COMPONENTS
OF
THE
MASTER 
PLAN.—At a minimum, the master plan shall iden-
tify—
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‘‘(A) the key performance parameters to be 
resolved through the integrated test and evalua-
tion strategy; 
‘‘(B) critical operational issues to be as-
sessed in addition to the key performance pa-
rameters; 
‘‘(C) specific development test and evalua-
tion phases and the scope of each phase; 
‘‘(D) modeling and simulation activities to 
be performed, if any, and the scope of such ac-
tivities; 
‘‘(E) early operational assessments to be 
performed, if any, and the scope of such assess-
ments; 
‘‘(F) operational test and evaluation phases; 
‘‘(G) an estimate of the resources, including 
funds, that will be required for all test, evalua-
tion, assessment, modeling, and simulation ac-
tivities; and 
‘‘(H) the Government entity or independent 
entity that will perform the test, evaluation, as-
sessment, modeling, and simulation activities. 
‘‘(4) UPDATE.—The Chief Acquisition Officer 
shall approve an updated master plan whenever there
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is a revision to project or program test and evalua-
tion strategy, scope, or phasing. 
‘‘(5) LIMITATION.—The Coast Guard may not— 
‘‘(A) proceed beyond that phase of the ac-
quisition process that entails approving the sup-
porting acquisition of a capability or asset before 
the master plan is approved by the Chief Acqui-
sition Officer; or 
‘‘(B) award any production contract for a 
capability, asset, or subsystem for which a mas-
ter plan is required under this subsection before 
the master plan is approved by the Chief Acqui-
sition Officer. 
‘‘(d) LIFE-CYCLE COST ESTIMATES.— 
‘‘(1) IN GENERAL.—The Commandant shall im-
plement mechanisms to ensure the development and 
regular updating of life-cycle cost estimates for each 
Level 1 or Level 2 acquisition to ensure that these es-
timates are considered in decisions to develop or 
produce new or enhanced capabilities and assets. 
‘‘(2) TYPES OF ESTIMATES.—In addition to life- 
cycle cost estimates that may be developed by acquisi-
tion program offices, the Commandant shall require 
that an independent life-cycle cost estimate be devel-
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oped for each Level 1 or Level 2 acquisition project 
or program. 
‘‘(3) REQUIRED UPDATES.—For each Level 1 or 
Level 2 acquisition project or program the Com-
mandant shall require that life-cycle cost estimates 
shall be updated before each milestone decision is con-
cluded and the project or program enters a new ac-
quisition phase. 
‘‘(e) DHS ACQUISITION APPROVAL.—A project or pro-
gram may not enter the obtain phase under section 573 un-
less the Department of Homeland Security Acquisition Re-
view Board or the Joint Review Board (or other entity to 
which such responsibility is delegated by the Secretary of 
Homeland Security) has approved the analysis of alter-
natives for the project. The Joint Review Board may also 
approve the low rates initial production quantity for the 
project or program if such an initial production quantity 
is planned by the acquisition project or program and 
deemed appropriate by the Joint Review Board. 
‘‘§ 573. Preliminary development and demonstration 
‘‘(a) IN GENERAL.—The Commandant shall ensure 
that developmental test and evaluation, operational test and 
evaluation, life cycle cost estimates, and the development 
and demonstration requirements are met to confirm that 
the projects or programs meet the requirements described
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in the mission-needs statement and the operational-require-
ments document and the following development and dem-
onstration objectives: 
‘‘(1) To demonstrate that the most promising de-
sign, manufacturing, and production solution is based 
upon a stable, producible, and cost-effective product 
design. 
‘‘(2) To ensure that the product capabilities meet 
contract specifications, acceptable operational per-
formance requirements, and system security require-
ments. 
‘‘(3) To ensure that the product design is mature 
enough to commit to full production and deployment. 
‘‘(b) TESTS AND EVALUATIONS.— 
‘‘(1) IN GENERAL.—The Commandant shall en-
sure that the Coast Guard conducts developmental 
tests and evaluations and operational tests and eval-
uations of a capability or asset and the subsystems of 
the capability or asset for which a master plan has 
been prepared under section 572(c)(1). 
‘‘(2) USE
OF
THIRD
PARTIES.—The Com-
mandant shall ensure that the Coast Guard uses inde-
pendent third parties with expertise in testing and 
evaluating the capabilities or assets and the sub-
systems of the capabilities or assets being acquired to
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conduct developmental tests and evaluations and 
operational tests and evaluations whenever the Coast 
Guard lacks the capability to conduct the tests and 
evaluations required by a master plan. 
‘‘(3) COMMUNICATION OF SAFETY CONCERNS.— 
The Commandant shall require that safety concerns 
identified during developmental or operational tests 
and evaluations or through independent or Govern-
ment-conducted design assessments of capabilities or 
assets and subsystems of capabilities or assets to be 
acquired by the Coast Guard shall be communicated 
as soon as practicable, but not later than 30 days 
after the completion of the test or assessment event or 
activity that identified the safety concern, to the pro-
gram manager for the capability or asset and the sub-
systems concerned and to the Chief Acquisition Offi-
cer. 
‘‘(4) ASSET ALREADY IN LOW, INITIAL, OR FULL- 
RATE PRODUCTION.—If operational test and evalua-
tion on a capability or asset already in low, initial, 
or full-rate production identifies a safety concern 
with the capability or asset or any subsystems of the 
capability or asset not previously identified during 
developmental or operational test and evaluation, the 
Commandant shall—
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‘‘(A) notify the program manager and the 
Chief Acquisition Officer of the safety concern as 
soon as practicable, but not later than 30 days 
after the completion of the test and evaluation 
event or activity that identified the safety con-
cern; and 
‘‘(B) notify the Chief Acquisition Officer 
and include in such notification— 
‘‘(i) an explanation of the actions that 
will be taken to correct or mitigate the safe-
ty concern in all capabilities or assets and 
subsystems of the capabilities or assets yet 
to be produced, and the date by which those 
actions will be taken; 
‘‘(ii) an explanation of the actions that 
will be taken to correct or mitigate the safe-
ty concern in previously produced capabili-
ties or assets and subsystems of the capabili-
ties or assets, and the date by which those 
actions will be taken; and 
‘‘(iii) an assessment of the adequacy of 
current funding to correct or mitigate the 
safety concern in capabilities or assets and 
subsystems of the capabilities or assets and
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in previously produced capabilities or assets 
and subsystems. 
‘‘(c) TECHNICAL CERTIFICATION.— 
‘‘(1) IN GENERAL.—The Commandant shall en-
sure that any Level 1 or Level 2 acquisition project 
or program is certified by the technical authority of 
the Coast Guard after review by an independent third 
party with capabilities in the mission area, asset, or 
particular asset component. 
‘‘(2) TEMPEST TESTING.—The Commandant 
shall— 
‘‘(A) cause all electronics on all aircraft, 
surface, and shore assets that require TEMPEST 
certification and that are delivered after the date 
of enactment of the Coast Guard Authorization 
Act for Fiscal Years 2010 and 2011 to be tested 
in accordance with master plan standards and 
communications security standards by an inde-
pendent third party that is authorized by the 
Federal Government to perform such testing; and 
‘‘(B) certify that the assets meet all applica-
ble TEMPEST requirements. 
‘‘(3) 
VESSEL
CLASSIFICATION.—The 
Com-
mandant shall cause each cutter, other than the Na-
tional Security Cutter, acquired by the Coast Guard
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and delivered after the date of enactment of the Coast 
Guard Authorization Act for Fiscal Years 2010 and 
2011 is to be classed by the American Bureau of 
Shipping before final acceptance. 
‘‘(d) ACQUISITION DECISION.—The Commandant may 
not proceed to full scale production, deployment, and sup-
port of a Level 1 or Level 2 acquisition project or program 
unless the Department of Homeland Security Acquisition 
Review Board has verified that the delivered asset or system 
meets the project or program performance and cost goals. 
‘‘§ 574. Acquisition, production, deployment, and sup-
port 
‘‘(a) IN GENERAL.—The Commandant shall— 
‘‘(1) ensure there is a stable and efficient produc-
tion and support capability to develop an asset or 
system; 
‘‘(2) conduct follow on testing to confirm and 
monitor performance and correct deficiencies; and 
‘‘(3) conduct acceptance tests and trails upon the 
delivery of each asset or system to ensure the delivered 
asset or system achieves full operational capability. 
‘‘(b) ELEMENTS.—The Commandant shall— 
‘‘(1) execute the productions contracts;
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‘‘(2) ensure the delivered products meet oper-
ational cost and schedules requirements established in 
the acquisition program baseline; 
‘‘(3) validate manpower and training require-
ments to meet system needs to operate, maintain, sup-
port, and instruct the system; and 
‘‘(4) prepare a project or program transition 
plan to enter into programmatic sustainment, oper-
ations, and support. 
‘‘§ 575. Acquisition program baseline breach 
‘‘(a) IN GENERAL.—The Commandant shall submit a 
report to the appropriate congressional committees as soon 
as possible, but not later than 30 days, after the Chief Ac-
quisition Officer of the Coast Guard becomes aware of the 
breach of an acquisition program baseline for any Level 1 
or Level 2 acquisition program, by— 
‘‘(1) a likely cost overrun greater than 15 per-
cent of the acquisition program baseline for that indi-
vidual capability or asset or a class of capabilities or 
assets; 
‘‘(2) a likely delay of more than 180 days in the 
delivery schedule for any individual capability or 
asset or class of capabilities or assets; or 
‘‘(3) an anticipated failure for any individual 
capability or asset or class of capabilities or assets to
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satisfy any key performance threshold or parameter 
under the acquisition program baseline. 
‘‘(b) CONTENT.—The report submitted under sub-
section (a) shall include— 
‘‘(1) a detailed description of the breach and an 
explanation of its cause; 
‘‘(2) the projected impact to performance, cost, 
and schedule; 
‘‘(3) an updated acquisition program baseline 
and the complete history of changes to the original ac-
quisition program baseline; 
‘‘(4) the updated acquisition schedule and the 
complete history of changes to the original schedule; 
‘‘(5) a full life-cycle cost analysis for the capa-
bility or asset or class of capabilities or assets; 
‘‘(6) a remediation plan identifying corrective 
actions and any resulting issues or risks; and 
‘‘(7) a description of how progress in the remedi-
ation plan will be measured and monitored. 
‘‘(c) SUBSTANTIAL VARIANCES IN COSTS OR SCHED-
ULE.—If a likely cost overrun is greater than 25 percent 
or a likely delay is greater than 12 months from the costs 
and schedule described in the acquisition program baseline 
for any Level 1 or Level 2 acquisition project or program 
of the Coast Guard, the Commandant shall include in the
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report a written certification, with a supporting expla-
nation, that— 
‘‘(1) the capability or asset or capability or asset 
class to be acquired under the project or program is 
essential to the accomplishment of Coast Guard mis-
sions; 
‘‘(2) there are no alternatives to such capability 
or asset or capability or asset class which will provide 
equal or greater capability in both a more cost-effec-
tive and timely manner; 
‘‘(3) the new acquisition schedule and estimates 
for total acquisition cost are reasonable; and 
‘‘(4) the management structure for the acquisi-
tion program is adequate to manage and control per-
formance, cost, and schedule. 
‘‘SUBCHAPTER 3—DEFINITIONS 
‘‘§ 581. Definitions 
‘‘In this chapter: 
‘‘(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional commit-
tees’ means the House of Representatives Committee 
on Transportation and Infrastructure and the Senate 
Committee on Commerce, Science, and Transpor-
tation.