I 
114TH CONGRESS 
2D SESSION 
H. R. 5978 
To amend title 14, United States Code, to clarify the functions of the 
Chief Acquisition Officer of the Coast Guard, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 9, 2016 
Mr. HUNTER (for himself, Mr. FARENTHOLD, Mr. GARAMENDI, Mr. YOUNG 
of Alaska, and Mr. ROUZER) introduced the following bill; which was re-
ferred to the Committee on Transportation and Infrastructure 
A BILL 
To amend title 14, United States Code, to clarify the func-
tions of the Chief Acquisition Officer of the Coast Guard, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Coast Guard and Maritime Transportation Amendments 
Act of 2016’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
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TITLE I—COAST GUARD, NAVIGATION, AND SHIPPING 
Sec. 101. Coast Guard major acquisition programs. 
Sec. 102. Prospective payment of funds necessary to provide medical care for 
the Coast Guard. 
Sec. 103. Oil spill disbursements auditing and report. 
Sec. 104. Deadline for compliance with alternate safety compliance program. 
Sec. 105. Coast Guard pier in Wilmington, North Carolina. 
Sec. 106. Backup global positioning system. 
TITLE II—OTHER MATTERS 
Sec. 201. Vessel ‘‘Apollonia’’. 
Sec. 202. Reimbursement for non-Federal construction costs of certain aids to 
navigation. 
Sec. 203. Corrections to provisions enacted by Coast Guard Authorization Acts. 
TITLE I—COAST GUARD, 
NAVIGATION, AND SHIPPING 
SEC. 101. COAST GUARD MAJOR ACQUISITION PROGRAMS. 
(a) FUNCTIONS OF CHIEF ACQUISITION OFFICER.— 
Section 56(c) of title 14, United States Code, is amended 
by striking ‘‘and’’ after the semicolon at the end of para-
graph (8), striking the period at the end of paragraph (9) 
and inserting ‘‘; and’’, and adding at the end the following: 
‘‘(10)(A) keeping the Commandant informed of 
the progress of major acquisition programs (as that 
term is defined in section 581); 
‘‘(B) informing the Commandant on a con-
tinuing basis of any developments on such programs 
that may require new or revisited trade-offs among 
cost, schedule, technical feasibility, and performance, 
including— 
‘‘(i) significant cost growth or schedule 
slippage; and 
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‘‘(ii) requirements creep (as that term is 
defined in section 2547(c)(1) of title 10); and 
‘‘(C) ensuring that the views of the Com-
mandant regarding such programs on cost, schedule, 
technical feasibility, and performance trade-offs are 
strongly considered by program managers and pro-
gram executive officers in all phases of the acquisi-
tion process.’’. 
(b) CUSTOMER
SERVICE
MISSION
OF
DIREC-
TORATE.— 
(1) IN
GENERAL.—Chapter 15 of title 14, 
United States Code, is amended— 
(A) in section 561(b)— 
(i) in paragraph (1), by striking ‘‘; 
and’’ and inserting a semicolon; 
(ii) in paragraph (2), by striking the 
period and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(3) to meet the needs of customers of major 
acquisition programs in the most cost-effective man-
ner practicable.’’; 
(B) in section 562, by repealing subsection 
(b) and redesignating subsections (c) through 
(g) as subsections (b) through (f), respectively; 
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(C) in section 563, by striking ‘‘Not later 
than 180 days after the date of enactment of 
the Coast Guard Authorization Act of 2010, the 
Commandant shall commence implementation 
of’’ and inserting ‘‘The Commandant shall 
maintain’’; 
(D) by adding at the end of section 564 
the following: 
‘‘(c) ACQUISITION
OF UNMANNED AERIAL SYS-
TEMS.— 
‘‘(1) IN GENERAL.—During any fiscal year for 
which funds are appropriated for the design or con-
struction of the Offshore Patrol Cutter, the Com-
mandant— 
‘‘(A) may not award a contract for design 
of an unmanned aerial system for use by the 
Coast Guard; and 
‘‘(B) may acquire an unmanned aerial sys-
tem only— 
‘‘(i) if such a system has been ac-
quired by, or has been used by, the De-
partment of Defense or the department in 
which the Coast Guard is operating, or a 
component thereof, before the date on 
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which the Commandant acquires the sys-
tem; and 
‘‘(ii) through an agreement with such 
a department or component, unless the un-
manned aerial system can be obtained at 
less cost through independent contract ac-
tion. 
‘‘(2) LIMITATIONS ON APPLICATION.— 
‘‘(A) SMALL
UNMANNED
AERIAL
SYS-
TEMS.—The limitations in paragraph (1)(B) do 
not apply to any small unmanned aerial system 
that consists of— 
‘‘(i) an unmanned aircraft weighing 
less than 55 pounds on takeoff, including 
all components and equipment on board or 
otherwise attached to the aircraft; and 
‘‘(ii) associated elements (including 
communication links and the components 
that control such aircraft) that are re-
quired for the safe and efficient operation 
of such aircraft. 
‘‘(B) PREVIOUSLY
FUNDED
SYSTEMS.— 
The limitations in paragraph (1) do not apply 
to the design or acquisition of an unmanned 
aerial system for which funds for research, de-
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velopment, test, and evaluation have been re-
ceived from the Department of Defense or the 
department in which the Coast Guard is oper-
ating.’’; 
(E) in subchapter II, by adding at the end 
the following: 
‘‘§ 578. Role of Vice Commandant in major acquisi-
tion programs 
‘‘The Vice Commandant— 
‘‘(1) shall represent the customer of a major ac-
quisition program with regard to trade-offs made 
among cost, schedule, technical feasibility, and per-
formance with respect to such program; and 
‘‘(2) shall advise the Commandant in decisions 
regarding the balancing of resources against prior-
ities, and associated trade-offs referred to in para-
graph (1), on behalf of the customer of a major ac-
quisition program. 
‘‘§ 579. Extension of major acquisition program con-
tracts 
‘‘(a) 
IN
GENERAL.—Notwithstanding 
section 
564(a)(2) of this title and section 2304 of title 10, and 
subject to subsections (b) and (c) of this section, the Sec-
retary may acquire additional units procured under a 
Coast Guard major acquisition program contract, by ex-
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tension of such contract without competition, if the Direc-
tor of the Cost Analysis Division of the Department of 
Homeland Security determines that the costs that would 
be saved through award of a new contract in accordance 
with such sections would not exceed the costs of such an 
award. 
‘‘(b) LIMITATION
ON
NUMBER
OF
ADDITIONAL 
UNITS.—The number of additional units acquired under 
a contract extension under this section may not exceed the 
number of additional units for which such determination 
is made. 
‘‘(c) DETERMINATION OF COSTS UPON REQUEST.— 
The Director of the Cost Analysis Division of the Depart-
ment of Homeland Security shall, at the request of the 
Secretary, determine for purposes of this section— 
‘‘(1) the costs that would be saved through 
award of a new major acquisition program contract 
in accordance with section 564(a)(2) for the acquisi-
tion of a number of additional units specified by the 
Secretary; and 
‘‘(2) the costs of such award, including the 
costs that would be incurred due to acquisition 
schedule delays and asset design changes associated 
with such award. 
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‘‘(d) NUMBER OF EXTENSIONS.—A contract may be 
extended under this section more than once.’’; and 
(F) in section 581— 
(i) by redesignating paragraphs (7) 
through (10) as paragraphs (9) through 
(12), respectively, and by redesignating 
paragraphs (3) through (6) as paragraphs 
(4) through (7), respectively; 
(ii) by inserting after paragraph (2) 
the following: 
‘‘(3) CUSTOMER OF A MAJOR ACQUISITION PRO-
GRAM.—The term ‘customer of a major acquisition 
program’ means the operating field unit of the Coast 
Guard that will field the system or systems acquired 
under a major acquisition program.’’; and 
(iii) by inserting after paragraph (7), 
as so redesignated, the following: 
‘‘(8) MAJOR ACQUISITION PROGRAM.—The term 
‘major acquisition program’ means an ongoing ac-
quisition undertaken by the Coast Guard with a life- 
cycle cost estimate greater than or equal to 
$300,000,000.’’. 
(2) CONFORMING AMENDMENT.—Section 569a 
of such title is amended by striking subsection (e). 
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(3) CLERICAL AMENDMENT.—The analysis at 
the beginning of such chapter is amended by adding 
at the end of the items relating to subchapter II the 
following: 
‘‘578. Role of Vice Commandant in major acquisition programs. 
‘‘579. Extension of major acquisition program contracts.’’. 
(c) REVIEW REQUIRED.— 
(1) REQUIREMENT.—The Commandant of the 
Coast Guard shall conduct a review of— 
(A) the authorities provided to the Com-
mandant in chapter 15 of title 14, United 
States Code, and other relevant statutes and 
regulations related to Coast Guard acquisitions, 
including developing recommendations to ensure 
that the Commandant plays an appropriate role 
in the development of requirements, acquisition 
processes, and the associated budget practices; 
(B) implementation of the strategy pre-
pared in accordance with section 562(b)(2) of 
title 14, United States Code, as in effect before 
the enactment of this Act; and 
(C) acquisition policies, directives, and reg-
ulations of the Coast Guard to ensure such poli-
cies, directives, and regulations establish a cus-
tomer-oriented acquisition system. 
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(2) REPORT.—Not later than March 1, 2017, 
the Commandant shall submit to the Committee on 
Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report 
containing, at a minimum, the following: 
(A) The recommendations developed by the 
Commandant under paragraph (1) and other 
results of the review conducted under such 
paragraph. 
(B) The actions the Commandant is tak-
ing, if any, within the Commandant’s existing 
authority to implement such recommendations. 
(3) MODIFICATION OF POLICIES, DIRECTIVES, 
AND REGULATIONS.—Not later than one year after 
the date of the enactment of this Act, the Com-
mandant of the Coast Guard shall modify the acqui-
sition policies, directives, and regulations of the 
Coast Guard as necessary to ensure the development 
and implementation of a customer-oriented acquisi-
tion system, pursuant to the review under paragraph 
(1)(C). 
(d) 
ANALYSIS
OF
USING
MULTIYEAR
CON-
TRACTING.— 
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(1) IN GENERAL.—No later than one year after 
the date of the enactment of this Act, the Secretary 
of the department in which the Coast Guard is oper-
ating shall submit to the Committee on Transpor-
tation and Infrastructure of the House of Represent-
atives and the Committee on Commerce, Science, 
and Transportation of the Senate an analysis of the 
use of multiyear contracting, including procurement 
authority provided under section 2306b of title 10, 
United States Code, and authority similar to that 
granted to the Navy under section 121(b) of the Na-
tional Defense Authorization Act for Fiscal Year 
1998 (Public Law 105–85; 111 Stat. 1648) and sec-
tion 150 of the Continuing Appropriations Act, 2011 
(Public Law 111–242; 124 Stat. 3519), to acquire 
any combination of at least five— 
(A) Fast Response Cutters, beginning with 
hull 43; and 
(B) Offshore Patrol Cutters, beginning 
with hull 5. 
(2) CONTENTS.—The analysis under paragraph 
(1) shall include the costs and benefits of using 
multiyear contracting, the impact of multiyear con-
tracting on delivery timelines, and whether the ac-
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quisitions examined would meet the tests for the use 
of multiyear procurement authorities. 
SEC. 102. PROSPECTIVE PAYMENT OF FUNDS NECESSARY 
TO PROVIDE MEDICAL CARE FOR THE COAST 
GUARD. 
(a) IN GENERAL.—Chapter 13 of title 14, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘SEC. 520. PROSPECTIVE PAYMENT OF FUNDS NECESSARY 
TO PROVIDE MEDICAL CARE. 
‘‘(a) PROSPECTIVE PAYMENT REQUIRED.—In lieu of 
the reimbursement required under section 1085 of title 10, 
for periods when the Coast Guard is not operating as a 
service in the Navy the Secretary of the department in 
which the Coast Guard is operating shall make a prospec-
tive payment to the Secretary of Defense of an amount 
that represents the actuarial valuation of treatment or 
care— 
‘‘(1) that the Department of Defense provides 
to members of the Coast Guard, former members of 
the Coast Guard, and dependents of such members 
and former members (other than former members 
and dependents of former members who are a Medi-
care-eligible beneficiary or for whom the payment for 
treatment or care is made from the Medicare-Eligi-
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ble Retiree Health Care Fund) at facilities under the 
jurisdiction of the Department of Defense or a mili-
tary department; and 
‘‘(2) for which a reimbursement would other-
wise be made under such section 1085. 
‘‘(b) AMOUNT.—The amount of the prospective pay-
ment under subsection (a) shall be— 
‘‘(1) in the case of treatment or care to be pro-
vided to members of the Coast Guard and their de-
pendents, derived from amounts appropriated for the 
operating expenses of the Coast Guard; 
‘‘(2) in the case of treatment or care to be pro-
vided former members of the Coast Guard and their 
dependents, derived from amounts appropriated for 
retired pay; 
‘‘(3) determined under procedures established 
by the Secretary of Defense; 
‘‘(4) paid during the fiscal year in which treat-
ment or care is provided; and 
‘‘(5) subject to adjustment or reconciliation as 
the Secretary of the department in which the Coast 
Guard is operating when it is not operating as a 
service in the Navy and the Secretary of Defense de-
termine appropriate during or promptly after such 
fiscal year in cases in which the prospective payment 
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is determined excessive or insufficient based on the 
services actually provided. 
‘‘(c) NO PROSPECTIVE PAYMENT WHEN SERVICE IN 
NAVY.—No prospective payment shall be made under this 
section for any period during which the Coast Guard oper-
ates as a service in the Navy. 
‘‘(d) RELATIONSHIP
TO TRICARE.—This section 
shall not be construed to require a payment for, or the 
prospective payment of an amount that represents the 
value of, treatment or care provided under any TRICARE 
program.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 13 of title 14, United States Code, is amended by add-
ing at the end the following: 
‘‘520. Prospective payment of funds necessary to provide medical care.’’. 
(c) REPEAL.—Section 217 of the Coast Guard Au-
thorization Act of 2015 (Public Law 114–120), and the 
item relating to that section in the table of contents in 
section 2 of such Act, are repealed. 
SEC. 103. OIL SPILL DISBURSEMENTS AUDITING AND RE-
PORT. 
Section 1012 of the Oil Pollution Act of 1990 (33 
U.S.C. 2712) is amended— 
(1) by repealing subsection (g); 
(2) in subsection (l)(1), by striking ‘‘Within one 
year after the date of enactment of the Coast Guard 
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Authorization Act of 2010, and annually thereafter,’’ 
and inserting ‘‘Each year, on the date on which the 
President submits to Congress a budget under sec-
tion 1105 of title 31, United States Code,’’; and 
(3) by amending subsection (l)(2) to read as 
follows: 
‘‘(2) CONTENTS.—The report shall include— 
‘‘(A) a list of each disbursement of 
$500,000 or more from the Fund in the pre-
ceding fiscal year, including disbursements to 
Federal agencies; 
‘‘(B) a list of each disbursement of 
$500,000 or more from the Fund in the fiscal 
year preceding the preceding fiscal year that 
has not been reimbursed by a responsible party; 
and 
‘‘(C) a description of how each use of the 
Fund described in subparagraph (A) or (B) 
meets the requirements of subsection (a).’’. 
SEC. 104. DEADLINE FOR COMPLIANCE WITH ALTERNATE 
SAFETY COMPLIANCE PROGRAM. 
Section 4503(d)(1) of title 46, United States Code, 
is amended by striking ‘‘After January 1, 2020,’’ and all 
that follows through ‘‘the Secretary,’’ and inserting ‘‘For 
each of fishing vessels, fish processing vessels, and fish 
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