nologies, materials, and human factors directly relat-
ing to improving the performance of the Coast 
Guard’s mission in search and rescue, aids to navi-
gation, marine safety, marine environmental protec-
tion, enforcement of laws and treaties, ice oper-
ations, oceanographic research, and defense readi-
ness, $29,745,000, to remain available until ex-
pended, of which $500,000 shall be derived from the 
Oil Spill Liability Trust Fund to carry out the pur-
poses of section 1012(a)(5) of the Oil Pollution Act 
of 1990. 
(4) 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 Ben-
efit Plans, and payments for medical care of retired 
personnel and their dependents under chapter 55 of 
title 10, United States Code, $1,361,245,000, to re-
main available until expended. 
(5) For alteration or removal of bridges over 
navigable waters of the United States constituting 
obstructions to navigation, and for personnel and 
administrative costs associated with the Bridge Al-
teration Program, $16,000,000.
(6) For environmental compliance and restora-
tion at Coast Guard facilities (other than parts and 
equipment associated with operation and mainte-
nance), $13,198,000, to remain available until ex-
pended. 
(7) For the Coast Guard Reserve program, in-
cluding personnel and training costs, equipment, and 
services, $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 for active duty per-
sonnel of 47,000 for the fiscal year ending on September 
30, 2010. 
(b) MILITARY TRAINING STUDENT LOADS.—For fis-
cal year 2010, the Coast Guard is authorized average mili-
tary training student loads as follows: 
(1) For recruit and special training, 2,500 stu-
dent years. 
(2) For flight training, 165 student years. 
(3) For professional training in military and ci-
vilian institutions, 350 student years. 
(4) For officer acquisition, 1,200 student years.
TITLE II—COAST GUARD 
SEC. 201. APPOINTMENT OF CIVILIAN COAST GUARD 
JUDGES. 
(a) IN GENERAL.—Chapter 7 of title 14, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 153. Appointment of judges 
‘‘The Secretary may appoint civilian employees of the 
department in which the Coast Guard is operating as ap-
pellate military judges, available for assignment to the 
Coast Guard Court of Criminal Appeals as provided for 
in section 866(a) of title 10.’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter is amended by adding at the end the following: 
‘‘153. Appointment of judges.’’. 
SEC. 202. INDUSTRIAL ACTIVITIES. 
Section 151 of title 14, United States Code, is 
amended— 
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘All orders’’; and 
(2) by adding at the end the following: 
‘‘(b) ORDERS AND AGREEMENTS FOR INDUSTRIAL 
ACTIVITIES.—Under this section, the Coast Guard indus-
trial activities may accept orders from and enter into reim-
bursable agreements with establishments, agencies, and
departments of the Department of Defense and the De-
partment of Homeland Security.’’. 
SEC. 203. REIMBURSEMENT FOR MEDICAL-RELATED TRAV-
EL EXPENSES. 
(a) IN GENERAL.—Chapter 13 of title 14, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 518. Reimbursement for medical-related travel ex-
penses for certain persons residing on is-
lands in the continental United States 
‘‘In any case in which a covered beneficiary (as de-
fined in section 1072(5) of title 10) resides on an island 
that is located in the 48 contiguous States and the District 
of Columbia and that lacks public access roads to the 
mainland and is referred by a primary care physician to 
a specialty care provider (as defined in section 1074i(b) 
of title 10) on the mainland who provides services less 
than 100 miles from the location where the beneficiary re-
sides, the Secretary shall reimburse the reasonable travel 
expenses of the covered beneficiary and, when accompani-
ment by an adult is necessary, for a parent or guardian 
of the covered beneficiary or another member of the cov-
ered beneficiary’s family who is at least 21 years of age.’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter is amended by adding at the end the following:
‘‘518. Reimbursement for medical-related travel expenses for certain persons re-
siding on islands in the continental United States.’’. 
SEC. 204. COMMISSIONED OFFICERS. 
(a) ACTIVE DUTY PROMOTION LIST.—Section 42 of 
title 14, United States Code, is amended to read as fol-
lows: 
‘‘§ 42. Number and distribution of commissioned offi-
cers on active duty promotion list 
‘‘(a) MAXIMUM TOTAL NUMBER.—The total number 
of Coast Guard commissioned officers on the active duty 
promotion list, excluding warrant officers, shall not exceed 
6,700; except that the Commandant may temporarily in-
crease that number by up to 2 percent for no more than 
60 days following the date of the commissioning of a Coast 
Guard Academy class. 
‘‘(b) DISTRIBUTION PERCENTAGES BY GRADE.— 
‘‘(1) REQUIRED.—The total number of commis-
sioned officers authorized by this section shall be 
distributed in grade in the following percentages: 
0.375 percent for rear admiral; 0.375 percent for 
rear admiral (lower half); 6.0 percent for captain; 
15.0 percent for commander; and 22.0 percent for 
lieutenant commander. 
‘‘(2) DISCRETIONARY.—The Secretary shall 
prescribe the percentages applicable to the grades of 
lieutenant, lieutenant (junior grade), and ensign.
‘‘(3) AUTHORITY OF SECRETARY TO REDUCE 
PERCENTAGE.—The Secretary— 
‘‘(A) may reduce, as the needs of the Coast 
Guard require, any of the percentages set forth 
in paragraph (1); and 
‘‘(B) shall apply that total percentage re-
duction to any other lower grade or combination 
of lower grades. 
‘‘(c) COMPUTATIONS.— 
‘‘(1) IN GENERAL.—The Secretary shall com-
pute, at least once each year, the total number of 
commissioned officers authorized to serve in each 
grade by applying the grade distribution percentages 
established by or under this section to the total 
number of commissioned officers listed on the cur-
rent active duty promotion list. 
‘‘(2) ROUNDING FRACTIONS.—Subject to sub-
section (a), in making the computations under para-
graph (1), any fraction shall be rounded to the near-
est whole number. 
‘‘(3) TREATMENT OF OFFICERS SERVING OUT-
SIDE COAST GUARD.—The number of commissioned 
officers on the active duty promotion list below the 
rank of rear admiral (lower half) serving with other 
Federal departments or agencies on a reimbursable
basis or excluded under section 324(d) of title 49 
shall not be counted against the total number of 
commissioned officers authorized to serve in each 
grade. 
‘‘(d) USE OF NUMBERS; TEMPORARY INCREASES.— 
The numbers resulting from computations under sub-
section (c) shall be, for all purposes, the authorized num-
ber in each grade; except that the authorized number for 
a grade is temporarily increased during the period between 
one computation and the next by the number of officers 
originally appointed in that grade during that period and 
the number of officers of that grade for whom vacancies 
exist in the next higher grade but whose promotion has 
been delayed for any reason. 
‘‘(e) OFFICERS SERVING COAST GUARD ACADEMY 
AND RESERVE.—The number of officers authorized to be 
serving on active duty in each grade of the permanent 
commissioned teaching staff of the Coast Guard Academy 
and of the Reserve serving in connection with organizing, 
administering, recruiting, instructing, or training the re-
serve components shall be prescribed by the Secretary.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chap-
ter 3 of such title is amended by striking the item relating 
to section 42 and inserting the following: 
‘‘42. Number and distribution of commissioned officers on active duty promotion 
list.’’.
SEC. 205. COAST GUARD PARTICIPATION IN THE ARMED 
FORCES RETIREMENT HOME (AFRH) SYSTEM. 
(a) IN GENERAL.—Section 1502 of the Armed 
Forces Retirement Home Act of 1991 (24 U.S.C. 401) 
is amended— 
(1) by striking paragraph (4); 
(2) in paragraph (5)— 
(A) by striking ‘‘and’’ at the end of sub-
paragraph (C); 
(B) by striking the period at the end of 
subparagraph (D) and inserting ‘‘; and’’; and 
(C) by inserting at the end the following: 
‘‘(E) the Assistant Commandant of the 
Coast Guard for Human Resources.’’; and 
(3) by adding at the end of paragraph (6) the 
following: 
‘‘(E) The Master Chief Petty Officer of the 
Coast Guard.’’. 
(b) CONFORMING AMENDMENTS.—(1) Section 2772 
of title 10, United States Code, is amended— 
(A) in subsection (a) by inserting ‘‘or, in the 
case of the Coast Guard, the Commandant’’ after 
‘‘concerned’’; and 
(B) by striking subsection (c). 
(2) Section 1007(i) of title 37, United States Code, 
is amended—
(A) in paragraph (3) by inserting ‘‘or, in the 
case of the Coast Guard, the Commandant’’ after 
‘‘Secretary of Defense’’; 
(B) by striking paragraph (4); and 
(C) by redesignating paragraph (5) as para-
graph (4). 
SEC. 206. GRANTS TO INTERNATIONAL MARITIME ORGANI-
ZATIONS. 
Section 149 of title 14, United States Code, is 
amended by adding at the end the following: 
‘‘(c) GRANTS TO INTERNATIONAL MARITIME ORGA-
NIZATIONS.—After consultation with the Secretary of 
State, the Commandant may make grants to, or enter into 
cooperative agreements, contracts, or other agreements 
with, international maritime organizations for the purpose 
of acquiring information or data about merchant vessel in-
spections, security, safety, classification, and port state or 
flag state law enforcement or oversight.’’. 
SEC. 207. LEAVE RETENTION AUTHORITY. 
(a) IN GENERAL.—Chapter 11 of title 14, United 
States Code, is amended by inserting after section 425 the 
following: 
‘‘§ 426. Emergency leave retention authority 
‘‘With regard to a member of the Coast Guard who 
serves on active duty, a duty assignment in support of a
declaration of a major disaster or emergency by the Presi-
dent under the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5121 et seq.) shall 
be treated, for the purpose of section 701(f)(2) of title 
10, a duty assignment in support of a contingency oper-
ation.’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter is amended by inserting after the item relating 
to section 425 the following new item: 
‘‘426. Emergency leave retention authority.’’. 
SEC. 208. ENFORCEMENT AUTHORITY. 
(a) IN GENERAL.—Chapter 5 of title 14, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 99. Enforcement authority 
‘‘Subject to guidelines approved by the Secretary, 
members of the Coast Guard, in the performance of offi-
cial duties, may— 
‘‘(1) carry a firearm; and 
‘‘(2) while at a facility (as defined in section 
70101 of title 46)— 
‘‘(A) make an arrest without warrant for 
any offense against the United States com-
mitted in their presence; and 
‘‘(B) seize property as otherwise provided 
by law.’’.
(b) CONFORMING REPEAL.—The first section added 
to title 46, United States Code, by the amendment made 
by subsection (a) of section 801 of the Coast Guard and 
Maritime Transportation Act of 2004 (118 Stat. 1078), 
and the item relating to such first section enacted by the 
amendment made by subsection (b) of such section 801, 
are repealed. 
(c) CLERICAL AMENDMENT.—The analysis for such 
chapter is amended by adding at the end the following: 
‘‘99. Enforcement authority.’’. 
SEC. 209. REPEAL. 
Section 216 of title 14, United States Code, and the 
item relating to such section in the analysis for chapter 
11 of such title, are repealed. 
SEC. 210. MERCHANT MARINER MEDICAL ADVISORY COM-
MITTEE. 
(a) IN GENERAL.—Chapter 71 of title 46, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 7115. Merchant Mariner Medical Advisory Com-
mittee 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—There is established a Mer-
chant Mariner Medical Advisory Committee (in this 
section referred to as the ‘Committee’).
‘‘(2) FUNCTIONS.—The Committee shall advise 
the Secretary on matters relating to— 
‘‘(A) medical certification determinations 
for issuance of merchant mariner credentials; 
‘‘(B) medical standards and guidelines for 
the physical qualifications of operators of com-
mercial vessels; 
‘‘(C) medical examiner education; and 
‘‘(D) medical research. 
‘‘(b) MEMBERSHIP.— 
‘‘(1) IN GENERAL.—The Committee shall con-
sist of 14 members, none of whom is a Federal em-
ployee, and shall include— 
‘‘(A) ten who are health-care professionals 
with particular expertise, knowledge, or experi-
ence regarding the medical examinations of 
merchant mariners or occupational medicine; 
and 
‘‘(B) four who are professional mariners 
with knowledge and experience in mariner occu-
pational requirements. 
‘‘(2) STATUS OF MEMBERS.—Members of the 
Committee shall not be considered Federal employ-
ees or otherwise in the service or the employment of 
the Federal Government, except that members shall
‘‘(e) COMPENSATION; REIMBURSEMENT.—Members 
of the Committee shall serve without compensation, except 
that, while engaged in the performance of duties away 
from their homes or regular places of business of the mem-
ber, the member of the Committee may be allowed travel 
expenses, including per diem in lieu of subsistence, as au-
thorized by section 5703 of title 5. 
‘‘(f) STAFF; SERVICES.—The Secretary shall furnish 
to the Committee the personnel and services as are consid-
ered necessary for the conduct of its business.’’. 
(b) FIRST MEETING.—No later than six months after 
the date of enactment of this Act, the Merchant Mariner 
Medical Advisory Committee established by the amend-
ment made by this section shall hold its first meeting. 
(c) CLERICAL AMENDMENT.—The analysis for chap-
ter 71 of that title is amended by adding at the end the 
following: 
‘‘7115. Merchant Mariner Medical Advisory Committee.’’. 
SEC. 211. 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 qualifica-
tions, experience, and length of service, as the needs 
of the Coast Guard may require, from among the 
commissioned warrant officers, warrant officers, and 
enlisted members of the Coast Guard, and from 
holders of licenses issued under chapter 71 of title 
46; and 
‘‘(2) in the Coast Guard Reserve in a grade, 
not above lieutenant, appropriate to their qualifica-
tions, experience, and length of service, as the needs 
of the Coast Guard may require, from among the 
commissioned warrant officers of the Coast Guard 
Reserve.’’. 
SEC. 212. ENHANCED STATUS QUO OFFICER PROMOTION 
SYSTEM. 
Chapter 11 of title 14, United States Code, is amend-
ed— 
(1) in section 253(a)— 
(A) by inserting ‘‘and’’ after ‘‘considered,’’; 
and 
(B) by striking ‘‘, and the number of offi-
cers the board may recommend for promotion’’; 
(2) in section 258— 
(A) by inserting ‘‘(a) IN GENERAL.—’’ be-
fore the existing text;
(B) in subsection (a) (as so designated) by 
striking the colon at the end of the material 
preceding paragraph (1) and inserting ‘‘—’’; 
and 
(C) by adding at the end the following: 
‘‘(b) PROVISION OF DIRECTION AND GUIDANCE.— 
‘‘(1) In addition to the information provided 
pursuant to subsection (a), the Secretary may fur-
nish the selection board— 
‘‘(A) specific direction relating to the needs 
of the Coast Guard for officers having par-
ticular skills, including direction relating to the 
need for a minimum number of officers with 
particular skills within a specialty; and 
‘‘(B) any other guidance that the Secretary 
believes may be necessary to enable the board 
to properly perform its functions. 
‘‘(2) Selections made based on the direction and 
guidance provided under this subsection shall not ex-
ceed 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.’’; 
(3) in section 259(a), by inserting after ‘‘whom 
the board’’ the following: ‘‘, giving due consideration
to the needs of the Coast Guard for officers with 
particular skills so noted in specific direction fur-
nished to the board by the Secretary under section 
258 of this title,’’; and 
(4) in section 260(b), by inserting after ‘‘quali-
fied for promotion’’ the following: ‘‘to meet the 
needs of the service (as noted in specific direction 
furnished the board by the Secretary under section 
258 of this title)’’. 
SEC. 213. LASER TRAINING SYSTEM. 
(a) IN GENERAL.—Within one year after the date of 
enactment of this Act, the Secretary of the department 
in which the Coast Guard is operating shall test an inte-
grated laser engagement system for the training of mem-
bers of the Coast Guard assigned to small vessels in the 
use of individual weapons and machine guns on those ves-
sels. The test shall be conducted on vessels on the Great 
Lakes using similar laser equipment used by other Federal 
agencies. However, that equipment shall be adapted for 
use in the marine environment. 
(b) REPORT.—The Secretary shall submit a report to 
the Committee on Transportation and Infrastructure and 
the Committee on Homeland Security of the House of 
Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate within 6
months after the conclusions of the test required under 
subsection (a) on the costs and benefits of using the sys-
tem regionally and nationwide to train members of the 
Coast Guard in the use of individual weapons and machine 
guns. 
SEC. 214. COAST GUARD VESSELS AND AIRCRAFT. 
(a) AUTHORITY TO FIRE AT OR INTO A VESSEL.— 
Section 637(c) of title 14, United States Code, is amend-
ed— 
(1) in paragraph (1), by striking ‘‘; or’’ and in-
serting a semicolon; 
(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(3) any other vessel or aircraft on government 
noncommercial service when— 
‘‘(A) the vessel or aircraft is under the tac-
tical control of the Coast Guard; and 
‘‘(B) at least one member of the Coast 
Guard is assigned and conducting a Coast 
Guard mission on the vessel or aircraft.’’. 
(b) AUTHORITY TO DISPLAY COAST GUARD ENSIGNS 
AND PENNANTS.—Section 638(a) of title 14, United 
States Code, is amended by striking ‘‘Coast Guard vessels
and aircraft’’ and inserting ‘‘Vessels and aircraft author-
ized by the Secretary’’. 
SEC. 215. COAST GUARD DISTRICT OMBUDSMEN. 
(a) IN GENERAL.—Chapter 3 of title 14, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 55. District Ombudsmen 
‘‘(a) IN GENERAL.—The Commandant shall appoint 
an employee of the Coast Guard in each Coast Guard Dis-
trict as a District Ombudsman to serve as a liaison be-
tween ports, terminal operators, shipowners, and labor 
representatives and the Coast Guard. 
‘‘(b) PURPOSE.—The purpose of the District Om-
budsman shall be the following: 
‘‘(1) To support the operations of the Coast 
Guard in each port in the District for which the Dis-
trict Ombudsman is appointed. 
‘‘(2) To improve communications between and 
among port stakeholders including, port and ter-
minal operators, ship owners, labor representatives, 
and the Coast Guard. 
‘‘(3) To seek to resolve disputes between the 
Coast Guard and all petitioners regarding require-
ments imposed or services provided by the Coast 
Guard.
‘‘(4) ACCESS TO INFORMATION.—The District 
Ombudsman shall have access to any Coast Guard 
document, including any record or report, that will 
aid the District Ombudsman in obtaining the infor-
mation needed to conduct an investigation of a com-
pliant. 
‘‘(5) REPORTS.—At the conclusion of an inves-
tigation, the District Ombudsman shall submit a re-
port on the findings and recommendations of the 
District Ombudsman, to the Commander of the Dis-
trict in which the petitioner who brought the com-
plaint is located or operating. 
‘‘(6) DEADLINE.—The District Ombudsman 
shall seek to resolve each complaint brought in ac-
cordance with the guidelines— 
‘‘(A) in a timely fashion; and 
‘‘(B) not later than 4 months after the 
complaint is officially accepted by the District 
Ombudsman. 
‘‘(d) APPOINTMENT.—The Commandant shall ap-
point as the District Ombudsman a civilian who has expe-
rience in port and transportation systems and knowledge 
of port operations or of maritime commerce (or both). 
‘‘(e) ANNUAL REPORTS.—The Secretary shall report 
annually to the Committee on Transportation and Infra-
structure of the House of Representatives and the Com-
mittee on Commerce, Science, and Transportation of the 
Senate on the matters brought before the District Om-
budsmen, including— 
‘‘(1) the number of matters brought before each 
District Ombudsman; 
‘‘(2) a brief summary of each such matter; and 
‘‘(3) the eventual resolution of each such mat-
ter.’’. 
(b) CLERICAL AMENDMENT.—The analysis at the be-
ginning of that chapter is amended by adding at the end 
the following new item: 
‘‘55. District Ombudsmen.’’. 
SEC. 216. COAST GUARD COMMISSIONED OFFICERS: COM-
PULSORY RETIREMENT. 
(a) IN GENERAL.—Chapter 11 of title 14, United 
States Code, is amended by striking section 293 and in-
serting the following: 
‘‘§ 293. Compulsory retirement 
‘‘(a) REGULAR COMMISSIONED OFFICERS.—Any reg-
ular commissioned officer, except a commissioned warrant 
officer, serving in a grade below rear admiral (lower half) 
shall be retired on the first day of the month following 
the month in which the officer becomes 62 years of age. 
‘‘(b) FLAG-OFFICER GRADES.—(1) Except as pro-
vided in paragraph (2), any regular commissioned officer
serving in a grade of rear admiral (lower half) or above 
shall be retired on the first day of the month following 
the month in which the officer becomes 64 years of age. 
‘‘(2) The retirement of an officer under paragraph 
(1) may be deferred— 
‘‘(A) by the President, but such a deferment 
may not extend beyond the first day of the month 
following the month in which the officer becomes 68 
years of age; or 
‘‘(B) by the Secretary of the department in 
which the Coast Guard is operating, but such a 
deferment may not extend beyond the first day of 
the month following the month in which the officer 
becomes 66 years of age.’’. 
(b) CLERICAL AMENDMENT.—The analysis at the be-
ginning of such chapter is amended by striking the item 
relating to such section and inserting the following: 
‘‘293. Compulsory retirement.’’. 
SEC. 217. ENFORCEMENT OF COASTWISE TRADE LAWS. 
(a) IN GENERAL.—Chapter 5 of title 14, United 
States Code, is further amended by adding at the end the 
following: 
‘‘§ 100. Enforcement of coastwise trade laws 
‘‘Officers and members of the Coast Guard are au-
thorized to enforce chapter 551 of title 46. The Secretary 
shall establish a program for these officers and members
to enforce that chapter, including the application of those 
laws to vessels that support the exploration, development, 
and production of oil, gas, or mineral resources in the Gulf 
of Mexico.’’. 
(b) CLERICAL AMENDMENT.—The analysis for that 
chapter is further amended by adding at the end the fol-
lowing new item: 
‘‘100. Enforcement of coastwise trade laws.’’. 
(c) REPORT.—The Secretary of the department in 
which the Coast Guard is operating shall submit a report 
to the Committee on Transportation and Infrastructure 
of the House of Representatives and the Senate Com-
mittee on Commerce, Science, and Transportation within 
one year after the date of enactment of this Act on the 
enforcement strategies and enforcement actions taken to 
enforce the coastwise trade laws. 
SEC. 218. ACADEMY NOMINATIONS. 
(a) APPOINTMENT.—Section 182(a) of title 14, 
United States Code, is amended to read as follows: 
‘‘(a) CORPS OF CADETS; NUMBER; NOMINATION.— 
‘‘(1) The authorized strength of the Corps of 
Cadets (determined for any academic program year 
as of the day before the last day of the academic 
program year) is 1,000, excluding those foreign na-
tionals admitted for instructions pursuant to section
195. Subject to that limitation, cadets are selected 
as follows: 
‘‘(A) Not more than 10 individuals, ap-
pointed by the Secretary of Homeland Security, 
in order of merit as established by competitive 
examination, from the children of members of 
the Armed Forces who were killed in action or 
died of, or have a service-connected disability at 
not less than 100 per centum resulting from, 
wounds or injuries received or diseases con-
tracted in, or preexisting injury or disease ag-
gravated by, active service, children of members 
who are in a ‘missing status’ (as defined in sec-
tion 551(2) of title 37), and children of civilian 
employees who are in ‘missing status’ (as de-
fined in section 5561(5) of title 5). The deter-
mination of the Department of Veterans Affairs 
as to service connection of the cause of death 
or disability is rated, is binding upon the Sec-
retary. 
‘‘(B) Not less than one, nominated at large 
by the Vice President or, if there is no Vice 
President, by the President pro tempore of the 
Senate.
‘‘(C) Not less than one, nominated by each 
Senator. 
‘‘(D) Not less than one, nominated by each 
Representative in Congress. 
‘‘(E) Not less than one, nominated by the 
Delegate to the House of Representatives from 
the District of Columbia, the Delegate in Con-
gress from the Virgin Islands, the Resident 
Commissioner from Puerto Rico, the Delegate 
in Congress from Guam, the Delegate in Con-
gress from American Samoa, or the Resident 
Representative from the Commonwealth of the 
Northern Mariana Islands. 
Each Senator, Representative, and Delegate in Con-
gress, including the Resident Commissioner and the 
Resident Representative, is entitled to nominate 10 
persons each year. Cadets who do not graduate on 
time shall not count against the allocations pursuant 
to subparagraphs (B)–(E). Nominees may be sub-
mitted without ranking or with a principal candidate 
and 9 ranked or unranked alternates. A nominee not 
selected for appointment under this paragraph shall 
be considered an alternate for the purposes of ap-
pointment under paragraph (2).
‘‘(2) The Secretary may appoint, each academic 
program year, individuals who are either— 
‘‘(A) alternates nominated pursuant to 
paragraph (1) (C), (D), or (E); or 
‘‘(B) applicants who applied directly for 
admission. 
‘‘(3) In addition, the Secretary may appoint, 
each academic program year, individuals who are— 
‘‘(A) children of members of the Armed 
Forces who— 
‘‘(i) are on active duty (other than for 
training) and who have served continuously 
on active duty for at least eight years; 
‘‘(ii) are, or who died while they were, 
retired with pay or granted retired or re-
tainer pay; 
‘‘(iii) are serving as members of re-
serve components and are credited with at 
least eight years of service; 
‘‘(iv) would be, or who died while they 
would have been, entitled to retired pay, 
except for not having attained 60 years of 
age; or 
‘‘(v) have been awarded the Medal of 
Honor;
the total number of whom cannot exceed 5 per-
cent of the class to be admitted; however, a per-
son who is eligible for selection under sub-
section (a)(1)(A) may not be selected under this 
subparagraph; 
‘‘(B) enlisted members of the Coast Guard 
or the Coast Guard Reserve, the total number 
of whom cannot exceed 5 percent of the class 
to be admitted; 
‘‘(C) graduates of the Coast Guard Schol-
ars program, the total number of whom cannot 
exceed 30 percent of the class to be admitted; 
and 
‘‘(D) individuals who possess qualities that 
the Superintendent identifies to be of particular 
value to the Academy and the Service, the total 
number of whom cannot exceed 20 percent of 
the class to be admitted. 
‘‘(4) An individual shall be qualified for nomi-
nation, selection, and appointment as a cadet at the 
Academy only if the individual— 
‘‘(A) is a citizen or national of the United 
States; and 
‘‘(B) meets such minimum requirements 
that the Secretary may establish.
‘‘(5) The Superintendent shall furnish to any 
Member of Congress, upon the written request of 
such Member, the name of the Congressman or 
other nominating authority responsible for the nomi-
nation of any named or identified person for ap-
pointment to the Academy. 
‘‘(6) For purposes of the limitation in sub-
section (a)(1) establishing the aggregate authorized 
strength of the Corps of Cadets, the Secretary may, 
for any academic program year, permit a variance in 
that limitation by not more than 5 percent. In ap-
plying that limitation, and any such variance, the 
last day of an academic program year shall be con-
sidered to be graduation day.’’. 
(b) TRANSITION.—This section shall provide for the 
nomination, selection, and appointment of individuals, 
pursuant to section 182 of title 14, United States Code, 
who will matriculate in academic program year 2012 and 
thereafter, except that for— 
(1) academic program year 2012, no less than 
135 cadets of the corps (or 14 percent of the corps, 
whichever is smaller) shall be from nominations 
made pursuant to section 182(a)(1)(B)–(E); 
(2) academic program year 2013, no less than 
270 cadets of the corps (or 27 percent of the corps,
whichever is smaller) shall be from nominations 
made pursuant to section 182(a)(1)(B)–(E); and 
(3) academic program year 2014, no less than 
405 cadets of the corps (or 41 percent of the corps, 
which ever is smaller) shall be from nominations 
made pursuant to section 182(a)(1)(B)–(E). 
The Secretary is hereby authorized to take any additional 
action the Secretary believes necessary and proper to pro-
vide for the transition to the nomination, selection, and 
appointment process provided under this section. 
(c) MINORITY RECRUITING PROGRAM.— 
(1) IN GENERAL.—Chapter 9 of title 14, United 
States Code, is amended by adding at the end the 
following new section: 
‘‘§ 199. Minority recruiting program 
‘‘The Secretary of the department in which the Coast 
Guard is operating shall establish a minority recruiting 
program for prospective cadets at the Coast Guard Acad-
emy. The program may include— 
‘‘(1) use of minority cadets and officers to pro-
vide information regarding the Coast Guard and the 
Academy to students in high schools; 
‘‘(2) sponsoring of trips to high school teachers 
and guidance counselors to the Academy;
‘‘(3) to the extent authorized by the Secretary 
of the Navy, maximizing the use of the Naval Acad-
emy Preparatory School to prepare students to be 
cadets at the Coast Guard Academy; 
‘‘(4) recruiting minority members of the Coast 
Guard to attend the Academy; 
‘‘(5) establishment of a minority affairs office 
at the Academy; and 
‘‘(6) use of minority officers and members of 
the Coast Guard Reserve and Auxiliary to promote 
the Academy.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for that chapter is amended by adding at the 
end the following new item: 
‘‘199. Minority recruiting program.’’. 
(d) REPORT.—Within 12 months after the date of en-
actment of this Act, the Comptroller General of the United 
States shall report to Congress on the Coast Guard’s ef-
forts to recruit minority candidates to the Coast Guard 
Academy. The report shall include the following: 
(1) The status of implementation of the Coast 
Guard’s minority recruitment program. 
(2) An assessment of the effectiveness of the 
program, including the number of minority appli-
cants contacted by the Coast Guard Academy, the 
number of minority candidates who completed appli-
cations to the Academy, the number of minority can-
didates offered appointments to the Academy, and 
the number of candidates who accepted such ap-
pointments. 
(3) A comparison of the Coast Guard’s minority 
recruitment program with similar programs at other 
United States service academies. 
(4) Recommendations for enhancing the Coast 
Guard’s minority recruitment program. 
(5) An assessment of the current geographic di-
versity of cadets currently enrolled at the Coast 
Guard Academy including information on the num-
ber of candidates from each State and region of the 
United States who were contacted by the Academy, 
the number of candidates from each State and re-
gion of the United States who completed applica-
tions to the Academy, the number of candidates 
from each State and region of the country offered 
appointments to the Academy, and the number of 
candidates from each State and region of the coun-
try who accepted such appointments. 
(6) Recommendations for increasing the geo-
graphic diversity of the student population at the 
Coast Guard Academy.
SEC. 219. REPORT ON SEXUAL ASSAULTS IN THE COAST 
GUARD. 
(a) IN GENERAL.—Not later than January 15 of 
each year, the Commandant of the Coast Guard shall sub-
mit a report on the sexual assaults involving members of 
the Coast Guard to the Committee on Transportation and 
Infrastructure and the Committee on Homeland Security 
of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate. 
(b) CONTENTS.—The report required under sub-
section (a) shall contain the following: 
(1) The number of sexual assaults against 
members of the Coast Guard, and the number of 
sexual assaults by members of the Coast Guard, that 
were reported to military officials during the year 
covered by such report, and the number of the cases 
so reported that were substantiated. 
(2) A synopsis of, and the disciplinary action 
taken in, each substantiated case. 
(3) The policies, procedures, and processes im-
plemented by the Secretary concerned during the 
year covered by such report in response to incidents 
of sexual assault involving members of the Coast 
Guard concerned. 
(4) A plan for the actions that are to be taken 
in the year following the year covered by such report
on the prevention of and response to sexual assault 
involving members of the Coast Guard concerned. 
SEC. 220. HOME PORT OF COAST GUARD VESSELS IN GUAM. 
Section 96 of title 14, United States Code, is amend-
ed— 
(1) by striking ‘‘a State of the United States’’ 
and inserting ‘‘the United States or Guam’’; and 
(2) by inserting ‘‘or Guam’’ after ‘‘outside the 
United States’’. 
SEC. 221. MINORITY SERVING INSTITUTIONS. 
(a) MSI MANAGEMENT INTERNSHIP PROGRAM.— 
(1) 
ESTABLISHMENT
AND
PURPOSE.—The 
Commandant of the Coast Guard shall establish a 
two part management internship program for stu-
dents at minority serving institutions (MSI) to in-
tern at Coast Guard headquarters or a Coast Guard 
regional office, to be known as the ‘‘MSI Manage-
ment Internship Program’’, to develop a cadre of ci-
vilian, career mid-level and senior managers for the 
Coast Guard. 
(2) OPERATION.—The MSI Management In-
ternship Program shall be managed by the Secretary 
of Homeland Security, acting through the Com-
mandant of the Coast Guard, in coordination with 
National Association for Equal Opportunity in High-
er Education, the Hispanic Association of Colleges 
and Universities, and the American Indian Higher 
Education Consortium and other non-profit edu-
cational organizations that can undertake effective 
recruitment efforts to attract minority students and 
students with disabilities. 
(3) CRITERIA
FOR
SELECTION.—Participation 
in the MSI Management Internship Program shall 
be open to sophomores, juniors, and seniors at mi-
nority serving institutions, with an emphasis on such 
students who are majoring in management or busi-
ness administration, international affairs, political 
science, marine sciences, criminal justice, or any 
other major related to homeland security. 
(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated $2,000,000 
to the Commandant to carry out this subsection. 
(b) MSI INITIATIVES.— 
(1) ESTABLISHMENT
OF
MSI
STUDENT
PRE- 
COMMISSIONING INITIATIVE.—The Commandant of 
the Coast Guard shall establish an MSI component 
of the College Student Pre-Commissioning Initiative 
(to be known as the ‘‘MSI Student Pre-Commis-
sioning Initiative Program’’) to ensure greater par-
ticipation by students from MSIs in the College Stu-
dent Pre-Commissioning Initiative. 
(2) PARTICIPATION
IN
OFFICER
CANDIDATE 
SCHOOL.—The Commandant of the Coast Guard 
shall ensure that graduates of the MSI Student Pre- 
Commissioning Initiative Program are included in 
the first enrollment for Officer Candidate School 
that commences after the date of enactment of this 
Act and each enrollment period thereafter. 
(3) REPORTS.—Not later than 90 days after 
the conclusion of each academic year with respect to 
which the College Student Pre-Commissioning Initia-
tive and the MSI Student Pre-Commissioning Initia-
tive Program is carried out beginning with the first 
full academic year after the date of the enactment 
of this Act, the Commandant shall submit to the 
Committee on Transportation and Infrastructure 
and the Committee on Homeland Security of the 
House of Representatives and the Committee on 
Commerce of the Senate a report on the number of 
students in the College Student Pre-Commissioning 
Initiative and the number of students in the MSI 
Student Pre-Commissioning Initiative Program, out-
reach efforts, and demographic information of en-
rollees including, age, gender, race, and disability.
(4) ESTABLISHMENT OF MSI AVIATION OFFICER 
CORPS INITIATIVE.—The Commandant of the Coast 
Guard shall establish an MSI Aviation Officer Corps 
Initiative to increase the diversity of the Coast 
Guard Aviation Officer Corps through an integrated 
recruiting, accession, training, and assignment proc-
ess that offers guaranteed flight school opportunities 
to students from minority serving institutions. 
(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated $3,000,000 
to the Commandant to carry out this subsection. 
(c) COAST GUARD-MSI COOPERATIVE TECHNOLOGY 
PROGRAM.— 
(1) ESTABLISHMENT.—The Commandant of 
the Coast Guard shall establish a Coast Guard Lab-
oratory of Excellence-MSI Cooperative Technology 
Program at three minority serving institutions to 
focus on priority security areas for the Coast Guard, 
such as global maritime surveillance, resilience, and 
recovery. 
(2) COLLABORATION.—The Commandant shall 
encourage collaboration among the minority serving 
institutions selected under paragraph (1) and insti-
tutions of higher education with institutional re-
search and academic program resources and experi-
ence. 
(3) PARTNERSHIPS.—The heads of the labora-
tories established at the minority serving institutions 
pursuant to paragraph (1) may seek to establish 
partnerships with the private sector, especially small, 
disadvantaged businesses, to— 
(A) develop increased research and devel-
opment capacity; 
(B) increase the number of baccalaureate 
and graduate degree holders in science, tech-
nology, engineering, mathematics (STEM), and 
information technology or other fields critical to 
the mission of the Coast Guard; and 
(C) strengthen instructional ability among 
faculty. 
(4) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated $2,500,000 
to the Commandant to carry out this subsection, in-
cluding for instrumentation acquisition and funding 
undergraduate student scholarships, graduate fellow-
ships, and faculty-post doctoral study. 
(d) DEFINITION.—For purposes of this section, the 
terms ‘‘minority serving institution’’, ‘‘minority serving in-
stitutions’’, and ‘‘MSI’’ mean a historically Black college
or university (as defined in section 322 of the Higher Edu-
cation Act of 1965), a Hispanic-serving institution (as de-
fined in section 502 of such Act), a Tribal College or Uni-
versity (as defined in section 316 of such Act), a Predomi-
nantly Black institution (as defined in section 499A(c) of 
such Act), a Native American-serving nontribal institution 
(as defined in section 499A(c) of such Act), or an Asian 
American and a Native American Pacific Islander-serving 
institution (as defined in section 320 of such Act). 
SEC. 222. SUPPLEMENTAL POSITIONING SYSTEM. 
(a) STUDY REQUIRED.—The Secretary, in consulta-
tion with the Secretary of Transportation and other heads 
of appropriate Federal departments, shall conduct a study 
to determine whether there is a continued need for a sup-
plemental air and maritime navigation system as a backup 
to the Global Positioning System. 
(b) STUDY COMPONENTS.—The study shall— 
(1) analyze the impact of the termination of a 
supplemental system may have on maritime and 
aviation safety, including general aviation; 
(2) review national navigational capabilities 
available in the event of a loss of the Global Posi-
tioning System; 
(3) investigate the capabilities of currently 
available radionavigational technologies and systems,
including the LORAN-C program currently operated 
by the Coast Guard as well as modernized LORAN 
systems, and costs and infrastructure requirements 
necessary to establish a supplemental system nation-
wide; and 
(4) include recommendations for future courses 
of action. 
(c) PUBLIC COMMENT.—The Secretary shall— 
(1) publish in the Federal Register a draft re-
port containing findings, conclusions, and rec-
ommendations from the study required by subsection 
(a); 
(2) accept public comments regarding such 
draft report for a period of not less than 60 days 
after the date the draft report is published in the 
Federal Register; and 
(3) consider any such public comments in the 
preparation of a final report under subsection (d). 
(d) FINAL REPORT.—The Secretary shall submit a 
final report, including the findings and recommendations, 
of the study required under subsection (a) and responses 
to comments gathered under subsection (c) to the Com-
mittee on Transportation and Infrastructure of the House 
of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate not later than 
1 year after the enactment of this Act. 
(e) SECRETARY DEFINED.—As used in this section, 
the term ‘‘Secretary’’ means the Secretary of the depart-
ment in which the Coast Guard is operating. 
TITLE III—SHIPPING AND 
NAVIGATION 
SEC. 301. GOODS AND SERVICES. 
Section 4(b) of the Act of July 5, 1884, commonly 
known as the Rivers and Harbors Appropriation Act of 
1884 (33 U.S.C. 5(b)), is amended— 
(1) by striking ‘‘or’’ at the end of paragraph 
(2)(C); 
(2) by striking the period at the end of para-
graph (3) and inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
‘‘(4) sales taxes on goods and services provided 
to or by vessels or watercraft (other than vessels or 
watercraft primarily engaged in foreign com-
merce).’’. 
SEC. 302. SEAWARD EXTENSION OF ANCHORAGE GROUNDS 
JURISDICTION. 
Section 7 of the Rivers and Harbors Appropriations 
Act of 1915 (33 U.S.C. 471) is amended—
(1) by striking ‘‘That the’’ and inserting the 
following: 
‘‘(a) IN GENERAL.—The’’. 
(2) in subsection (a) (as designated by para-
graph (1)) by striking ‘‘$100; and the’’ and insert-
ing ‘‘up to $10,000. Each day during which a viola-
tion continues shall constitute a separate violation. 
The’’; and 
(3) by adding at the end the following: 
‘‘(b) DEFINITION.—As used in this section ‘navigable 
waters of the United States’ includes all waters of the ter-
ritorial sea of the United States as described in Presi-
dential Proclamation No. 5928 of December 27, 1988.’’. 
SEC. 303. MARITIME DRUG LAW ENFORCEMENT ACT 
AMENDMENT-SIMPLE POSSESSION. 
Section 70506 of title 46, United States Code, is 
amended by adding at the end the following: 
‘‘(c) SIMPLE POSSESSION.— 
‘‘(1) IN GENERAL.—Any individual on a vessel 
subject to the jurisdiction of the United States who 
is found by the Secretary, after notice and an oppor-
tunity for a hearing, to have knowingly or inten-
tionally possessed a controlled substance within the 
meaning of the Controlled Substances Act (21 
U.S.C. 812) shall be liable to the United States for
a civil penalty of not to exceed $10,000 for each vio-
lation. The Secretary shall notify the individual in 
writing of the amount of the civil penalty. 
‘‘(2) DETERMINATION OF AMOUNT.—In deter-
mining the amount of the penalty, the Secretary 
shall consider the nature, circumstances, extent, and 
gravity of the prohibited acts committed and, with 
respect to the violator, the degree of culpability, any 
history of prior offenses, ability to pay, and other 
matters that justice requires. 
‘‘(3) TREATMENT OF CIVIL PENALTY ASSESS-
MENT.—Assessment of a civil penalty under this 
subsection shall not be considered a conviction for 
purposes of State or Federal law but may be consid-
ered proof of possession if such a determination is 
relevant.’’. 
SEC. 304. TECHNICAL AMENDMENTS TO TONNAGE MEAS-
UREMENT LAW. 
(a) DEFINITIONS.—Section 14101(4) of title 46, 
United States Code, is amended— 
(1) by striking ‘‘engaged’’ the first place it ap-
pears and inserting ‘‘that engages’’; 
(2) in subparagraph (A), by striking ‘‘arriving’’ 
and inserting ‘‘that arrives’’; 
(3) in subparagraph (B)—
(A) by striking ‘‘making’’ and inserting 
‘‘that makes’’; and 
(B) by striking ‘‘(except a foreign vessel 
engaged on that voyage)’’; 
(4) in subparagraph (C), by striking ‘‘depart-
ing’’ and inserting ‘‘that departs’’; and 
(5) in subparagraph (D), by striking ‘‘making’’ 
and inserting ‘‘that makes’’. 
(b) DELEGATION OF AUTHORITY.—Section 14103(c) 
of that title is amended by striking ‘‘intended to be en-
gaged on’’ and inserting ‘‘that engages on’’. 
(c) APPLICATION.—Section 14301 of that title is 
amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) Except as otherwise provided in this section, this 
chapter applies to any vessel for which the application of 
an international agreement or other law of the United 
States to the vessel depends on the vessel’s tonnage.’’; 
(2) in subsection (b)— 
(A) in paragraph (1), by striking the pe-
riod at the end and inserting ‘‘, unless the gov-
ernment of the country to which the vessel be-
longs elects to measure the vessel under this 
chapter.’’;
(B) in paragraph (3), by inserting ‘‘of 
United States or Canadian registry or nation-
ality, or a vessel operated under the authority 
of the United States or Canada, and that is’’ 
after ‘‘vessel’’; 
(C) in paragraph (4), by striking ‘‘a vessel 
(except a vessel engaged’’ and inserting ‘‘a ves-
sel of United States registry or nationality, or 
one operated under the authority of the United 
States (except a vessel that engages’’; 
(D) by striking paragraph (5); 
(E) by redesignating paragraph (6) as 
paragraph (5); and 
(F) by amending paragraph (5), as so re-
designated, to read as follows: 
‘‘(5) a barge of United States registry or na-
tionality, or a barge operated under the authority of 
the United States (except a barge that engages on 
a foreign voyage) unless the owner requests.’’; 
(3) by striking subsection (c); 
(4) by redesignating subsections (d) and (e) as 
subsections (c) and (d), respectively; and 
(5) in subsection (c), as redesignated, by strik-
ing ‘‘After July 18, 1994, an existing vessel (except 
an existing vessel referred to in subsection (b)(5)(A)
or (B) of this section)’’ and inserting ‘‘An existing 
vessel that has not undergone a change that the Sec-
retary finds substantially affects the vessel’s gross 
tonnage (or a vessel to which IMO Resolutions 
A.494 (XII) of November 19, 1981, A.540 (XIII) of 
November 17, 1983, or A.541 (XIII) of November 
17, 1983, apply)’’. 
(d) MEASUREMENT.—Section 14302(b) of that title 
is amended to read as follows: 
‘‘(b) A vessel measured under this chapter may not 
be required to be measured under another law.’’. 
(e) TONNAGE CERTIFICATE.— 
(1) ISSUANCE.—Section 14303 of title 46, 
United States Code, is amended— 
(A) in subsection (a), by adding at the end 
the following: ‘‘For a vessel to which the Con-
vention does not apply, the Secretary shall pre-
scribe a certificate to be issued as evidence of 
a vessel’s measurement under this chapter.’’; 
(B) in subsection (b), by inserting ‘‘issued 
under this section’’ after ‘‘certificate’’; and 
(C) in the section heading by striking 
‘‘International’’ and ‘‘(1969)’’. 
(2) MAINTENANCE.—Section 14503 of that title 
is amended—
(A) by designating the existing text as sub-
section (a); and 
(B) by adding at the end the following new 
subsection: 
‘‘(b) The certificate shall be maintained as required 
by the Secretary.’’. 
(3) CLERICAL AMENDMENT.—The analysis at 
the beginning of chapter 143 of that title is amend-
ed by striking the item relating to section 14303 and 
inserting the following: 
‘‘14303. Tonnage Certificate.’’. 
(f) OPTIONAL REGULATORY MEASUREMENT.—Sec-
tion 14305(a) of that title is amended by striking ‘‘docu-
mented vessel measured under this chapter,’’ and inserting 
‘‘vessel measured under this chapter that is of United 
States registry or nationality, or a vessel operated under 
the authority of the United States,’’. 
(g) APPLICATION.—Section 14501 of that title is 
amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) A vessel not measured under chapter 143 
of this title if the application of an international 
agreement or other law of the United States to the 
vessel depends on the vessel’s tonnage.’’; and
(2) in paragraph (2), by striking ‘‘a vessel’’ and 
inserting ‘‘A vessel’’. 
(h) 
DUAL
TONNAGE
MEASUREMENT.—Section 
14513(c) of that title is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘vessel’s tonnage mark is 
below the uppermost part of the load line 
marks,’’ and inserting ‘‘vessel is assigned two 
sets of gross and net tonnages under this sec-
tion,’’; and 
(B) by inserting ‘‘vessel’s tonnage’’ before 
‘‘mark’’ the second place such term appears; 
and 
(2) in paragraph (2), by striking the period at 
the end and inserting ‘‘as assigned under this sec-
tion.’’. 
(i) RECIPROCITY
FOR FOREIGN VESSELS.—Sub-
chapter II of chapter 145 of that title is amended by add-
ing at the end the following: 
‘‘§ 14514. Reciprocity for foreign vessels 
‘‘For a foreign vessel not measured under chapter 
143, if the Secretary finds that the laws and regulations 
of a foreign country related to measurement of vessels are 
substantially similar to those of this chapter and the regu-
lations prescribed under this chapter, the Secretary may
accept the measurement and certificate of a vessel of that 
foreign country as complying with this chapter and the 
regulations prescribed under this chapter.’’. 
(j) CLERICAL AMENDMENT.—The analysis for sub-
chapter II of chapter 145 of such title is amended by add-
ing at the end the following: 
‘‘14514. Reciprocity for foreign vessels.’’. 
SEC. 305. ADJUSTMENT OF LIABILITY LIMITS FOR NAT-
URAL GAS DEEPWATER PORTS. 
Section 1004(d)(2) of the Oil Pollution Act of 1990 
(33 U.S.C. 2704(d)(2)) is amended by adding at the end 
the following: 
‘‘(D) The Secretary may establish, by reg-
ulation, a limit of liability of not less than 
$12,000,000 for a deepwater port used only in 
connection with transportation of natural gas.’’. 
SEC. 306. PERIOD OF LIMITATIONS FOR CLAIMS AGAINST 
OIL SPILL LIABILITY TRUST FUND. 
Section 1012(h)(1) of the Oil Pollution Act of 1990 
(33 U.S.C. 2712(h)(1)) is amended by striking ‘‘6’’ and 
inserting ‘‘3’’. 
SEC. 307. MERCHANT MARINER DOCUMENT STANDARDS. 
Not later than 270 days after the date of enactment 
of this Act, the Secretary of the department in which the 
Coast Guard is operating 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— 
(1) a plan to ensure that the process for an ap-
plication, by an individual who has, or has applied 
for, a transportation security card under section 
70105 of title 46, United States Code, for a mer-
chant mariner document can be completed entirely 
by mail; and 
(2) a report on the feasibility of, and a timeline 
to, redesign the merchant mariner document to com-
ply with the requirements of such section, including 
a biometric identifier, and all relevant international 
conventions, including the International Labour Or-
ganization Convention Number 185 concerning the 
seafarers identity document, and include a review on 
whether or not such redesign will eliminate the need 
for separate credentials and background screening 
and streamline the application process for mariners. 
SEC. 308. REPORT ON COAST GUARD DETERMINATIONS. 
Not later than 180 days after enactment of this Act, 
the Secretary of Homeland Security shall provide to the 
Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Com-
merce, Science, and Transportation of the Senate a report 
on the loss of United States shipyard jobs and industrial
base expertise as a result of rebuild, conversion, and dou-
ble-hull work on United States-flag vessels eligible to en-
gage in the coastwise trade being performed in foreign 
shipyards, enforcement of the Coast Guard’s foreign re-
build determination regulations, and recommendations for 
improving the transparency in the Coast Guard’s foreign 
rebuild determination process. 
SEC. 309. SHIP EMISSION REDUCTION TECHNOLOGY DEM-
ONSTRATION PROJECT. 
(a) STUDY.—The Commandant of the Coast Guard, 
in conjunction with the Administrator of the Environ-
mental Protection Agency, shall conduct a study— 
(1) that surveys new technology and new appli-
cations of existing technology for reducing air emis-
sions from cargo or passenger vessels that operate in 
United States waters and ports; and 
(2) that identifies the impediments, including 
any laws or regulations, to demonstrating the tech-
nology identified in paragraph (1). 
(b) REPORT.—Within 180 days after the date of en-
actment of this Act, the Commandant shall submit a re-
port on the results of the study conducted under sub-
section (a) to the Committee on Transportation and Infra-
structure and the Committee on Energy and Commerce 
of the House of Representatives and the Committee on
Commerce, Science, and Transportation and the Com-
mittee on Environment and Public Works of the Senate. 
SEC. 310. PHASEOUT OF VESSELS SUPPORTING OIL AND 
GAS DEVELOPMENT. 
(a) 
IN
GENERAL.—Notwithstanding 
section 
12111(d) of title 46, United States Code, foreign-flag ves-
sels may be chartered by, or on behalf of, a lessee to be 
employed for the setting, relocation, or recovery of anchors 
or other mooring equipment of a mobile offshore drilling 
unit that is located over the Outer Continental Shelf (as 
defined in section 2(a) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1331(a)) for operations in support 
of exploration, or flow-testing and stimulation of wells, for 
offshore mineral or energy resources in the Beaufort Sea 
or the Chukchi Sea adjacent to Alaska— 
(1) for a 1-year period from the date the lessee 
gives the Secretary of Transportation written notice 
of the commencement of such exploration drilling if 
the Secretary determines, after publishing notice in 
the Federal Register, that insufficient vessels docu-
mented under section 12111(d) of title 46, United 
States Code, are reasonably available and suitable 
for these support operations and all such reasonably 
available and suitable vessels are employed in sup-
port of such operations; and
(2) for an additional period until such vessels 
are available if the Secretary of Transportation de-
termines— 
(A) that, by April 30 of the year following 
the commencement of exploration drilling, the 
lessee has entered into a binding agreement to 
employ a suitable vessel or vessels to be docu-
mented under section 12111(d) of title 46, 
United States Code, in sufficient numbers and 
with sufficient suitability to replace any foreign- 
flag vessel or vessels operating under this sec-
tion; and 
(B) after publishing notice in the Federal 
Register, that insufficient vessels documented 
under section 12111(d) of title 46, United 
States Code, are reasonably available and suit-
able for these support operations and all such 
reasonably available and suitable vessels are 
employed in support of such operations. 
(b) EXPIRATION.—Irrespective of the year in which 
the commitment referred to in subsection (a)(2)(A) oc-
curs, foreign-flag anchor handling vessels may not be em-
ployed for the setting, relocation, or recovery of anchors 
or other mooring equipment of a mobile offshore drilling 
unit after December 31, 2017.
(c) LESSEE DEFINED.—In this section, the term 
‘‘lessee’’ means the holder of a lease (as defined in section 
1331(c) of title 43, United States Code), who, prior to 
giving the written notice in subsection (a)(1), has entered 
into a binding agreement to employ a suitable vessel docu-
mented or to be documented under 12111(d) of title 46, 
United States Code. 
(d) SAVINGS PROVISION.—Nothing in subsection (a) 
may be construed to authorize the employment in the 
coastwise trade of a vessel that does not meet the require-
ments of 12111 of title 46, United States Code. 
SEC. 311. ARCTIC MARINE SHIPPING ASSESSMENT IMPLE-
MENTATION. 
(a) PURPOSE.—The purpose of this section is to en-
sure safe and secure maritime shipping in the Arctic in-
cluding the availability of aids to navigation, vessel es-
corts, spill response capability, and maritime search and 
rescue in the Arctic. 
(b) 
INTERNATIONAL
MARITIME
ORGANIZATION 
AGREEMENTS.—To carry out the purpose of this section, 
the Secretary of the department in which the Coast Guard 
is operating is encouraged to enter into negotiations 
through the International Maritime Organization to con-
clude and execute agreements to promote coordinated ac-
tion among the United States, Russia, Canada, Iceland,
Norway, and Denmark and other seafaring and Arctic na-
tions to ensure, in the Arctic— 
(1) placement and maintenance of aids to navi-
gation; 
(2) appropriate marine safety, tug, and salvage 
capabilities; 
(3) oil spill prevention and response capability; 
(4) maritime domain awareness, including long- 
range vessel tracking; and 
(5) search and rescue. 
(c) COORDINATION BY COMMITTEE ON THE MARI-
TIME TRANSPORTATION SYSTEM.—The Committee on the 
Maritime Transportation System established under a di-
rective of the President in the Ocean Action Plan, issued 
December 17, 2004, shall coordinate the establishment of 
domestic transportation policies in the Arctic necessary to 
carry out the purpose of this section. 
(d) AGREEMENTS AND CONTRACTS.—The Secretary 
of the department in which the Coast Guard is operating 
may, subject to the availability of appropriations, enter 
into cooperative agreements, contracts, or other agree-
ments with, or make grants to individuals and govern-
ments to carry out the purpose of this section or any 
agreements established under subsection (b).
(e) ICEBREAKING.—The Secretary of the department 
in which the Coast Guard is operating shall promote safe 
maritime navigation by means of icebreaking where need-
ed to carry out the purposes of this section. 
(f) DEMONSTRATION PROJECTS.—The Secretary of 
Transportation may enter into cooperative agreements, 
contracts, or other agreements with, or make grants to, 
individuals to conduct demonstration projects to reduce 
emissions (including black carbon and other emissions 
that could contribute to climate change) or discharges 
from vessels operating in the Arctic. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated— 
(1) to the Secretary of the department in which 
the Coast Guard is operating— 
(A) $5,000,000 for each of fiscal years 
2011 through 2015 for seasonal operations in 
the Arctic; and 
(B) $10,000,000 for each of fiscal years 
2012 through 2015 to carry out agreements es-
tablished under subsection (d); and 
(2) 
to 
the 
Secretary 
of 
Transportation 
$5,000,000 for each of fiscal years 2011 through 
2015 to conduct demonstration projects under sub-
section (f).
(h) ICEBREAKERS.— 
(1) ANALYSES.—Not later than 90 days after 
the date of enactment of this Act or the date of com-
pletion of the ongoing High Latitude Study to assess 
Arctic polar ice-breaking mission requirements, 
which ever occurs later, the Commandant of the 
Coast Guard shall— 
(A) conduct a comparative cost-benefit 
analysis of— 
(i) rebuilding, renovating, or improv-
ing the existing fleet of icebreakers for op-
eration by the Coast Guard, 
(ii) constructing new icebreakers for 
operation by the Coast Guard, and 
(iii) any combination of the activities 
described in clauses (i) and (ii), to carry 
out the missions of the Coast Guard; and 
(B) conduct an analysis of the impact on 
mission capacity and the ability of the United 
States to maintain a presence in the Arctic re-
gions through the year 2020 if recapitalization 
of the icebreaker fleet, either by constructing 
new icebreakers or rebuilding, renovating, or 
improving the existing fleet of icebreakers, is 
not fully funded.
(2) REPORTS TO CONGRESS.— 
(A) Not later than 90 days after the date 
of enactment of this Act or the date of comple-
tion of the ongoing High Latitude Study to as-
sess Arctic ice-breaking mission requirements, 
which ever occurs later, the Commandant of the 
Coast Guard shall submit a report containing 
the results of the study, together with rec-
ommendations the Commandant deems appro-
priate under section 93(a)(24) of title 14, 
United States Code, to the Senate Committee 
on Commerce, Science, and Transportation and 
the House of Representatives Committee on 
Transportation and Infrastructure. 
(B) Not later than 1 year after the date of 
enactment of this Act, the Commandant shall 
submit reports containing the results of the 
analyses required under subparagraphs (A) and 
(B) of paragraph (1), together with rec-
ommendations the Commandant deems appro-
priate under section 93(a)(24) of title 14, 
United States Code, to the Senate Committee 
on Commerce, Science, and Transportation and 
the House of Representatives Committee on 
Transportation and Infrastructure.
(i) ARCTIC DEFINITION.—In this section the term 
‘‘Arctic’’ has the same meaning as in section 112 of the 
Arctic Research and Policy Act of 1984 (15 U.S.C. 4111). 
SEC. 312. LORAN-C SIGNAL. 
(a) Subject to subsection (b), the Secretary of Home-
land Security may not operate the Loran-C signal after 
January 4, 2010. 
(b) The limitation in subsection (a) shall take effect 
only if the Commandant of the Coast Guard certifies 
that— 
(1) the termination of the operation of the 
Loran-C signal as of the date specified in subsection 
(a) will not adversely impact the safety of maritime 
navigation; and 
(2) the Loran-C system infrastructure is not 
needed as a backup to the Global Positioning Sys-
tem or any other Federal navigation requirement. 
(c) If the Commandant makes the certifications de-
scribed in subsection (b), the Coast Guard shall, com-
mencing January 4, 2010, terminate the operation of the 
Loran-C signal and commence a phased decommissioning 
of the Loran-C system infrastructure. 
(d) Not later than 30 days after such certifications 
made pursuant to subsection (b), the Commandant shall 
submit to the Committee on Transportation and Infra-
structure of the House of Representatives and the Com-
mittee on Commerce, Science, and Transportation of the 
Senate a report setting forth a proposed schedule for the 
phased decommissioning of the Loran-C system infra-
structure in the event of the decommissioning of such in-
frastructure in accordance with subsection (c). 
(e) If the Commandant makes the certifications de-
scribed in subsection (b), the Secretary of Homeland Secu-
rity, acting through the Commandant of the Coast Guard, 
may, notwithstanding any other provision of law, sell any 
real and personal property under the administrative con-
trol of the Coast Guard and used for the Loran-C system, 
by directing the Administrator of General Services to sell 
such real and personal property, subject to such terms and 
conditions that the Secretary believes to be necessary to 
protect government interests and program requirements of 
the Coast Guard. 
SEC. 313. DUAL ESCORT VESSELS FOR DOUBLE HULLED 
TANKERS IN PRINCE WILLIAM SOUND, ALAS-
KA. 
(a) IN GENERAL.—Section 4116(c) of the Oil Pollu-
tion Act of 1990 (46 U.S.C. 3703 note; Public Law 101– 
380) is amended— 
(1) by striking ‘‘Not later than 6 months’’ and 
inserting the following:
‘‘(1) IN GENERAL.—Not later than 180 days’’; 
and 
(2) by adding at the end the following: 
‘‘(2) PRINCE WILLIAM SOUND, ALASKA.—The 
requirement in paragraph (1) relating to single 
hulled tankers in Prince William Sound, Alaska, de-
scribed in that paragraph being escorted by at least 
2 towing vessels or other vessels considered to be ap-
propriate by the Secretary (including regulations 
promulgated in accordance with section 3703(a)(3) 
of title 46, United States Code, as set forth in part 
168 of title 33, Code of Federal Regulations (as in 
effect on March 1, 2009), implementing this sub-
section with respect to those tankers) shall apply to 
double hulled tankers over 5,000 gross tons trans-
porting oil in bulk in Prince William Sound, Alas-
ka.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) take effect on the date that is 90 days after 
the date of enactment of this Act. 
(c) RULEMAKING.— 
(1) INTERIM
FINAL
RULE
AUTHORITY.—The 
Secretary shall issue an interim final rule as a tem-
porary regulation implementing this section (includ-
ing the amendments made by this section) as soon
as practicable after the date of enactment of this 
section, without regard to the provisions of chapter 
5 of title 5, United States Code. All regulations pre-
scribed under the authority of this paragraph that 
are not earlier superseded by final regulations shall 
expire not later than 1 year after the date of enact-
ment of this Act. 
(2) INITIATION
OF
RULEMAKING.—The Sec-
retary may initiate a rulemaking to implement this 
section (including the amendments made by this sec-
tion) as soon as practicable after the date of enact-
ment of this section. The final rule issued pursuant 
to that rulemaking may supersede the interim final 
rule promulgated under this subsection. 
TITLE IV—GREAT LAKES 
ICEBREAKER 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Great Lakes Ice-
breaker Replacement Act’’. 
SEC. 402. FINDINGS. 
Congress finds that— 
(1) five of the Coast Guard’s Great Lakes ice-
breakers are nearing the end of their useful lives; 
(2) two other Coast Guard icebreaking assets 
have experienced difficulty in heavy ice conditions;
(3) during the spring of 2008, United States- 
flag vessels operating on the Great Lakes suffered 
more than $1,300,000 in damages to their hulls be-
cause the Coast Guard did not have enough assets 
available to keep Great Lakes shipping lanes open; 
(4) during the 2006–2007 ice season, ship-
ments of iron ore, coal, and limestone on the Great 
Lakes exceeded 20,000,000 tons; 
(5) during the 2006–2007 ice season, the trans-
portation of 10,400,000 tons of iron ore on the 
Great Lakes helped support 100,000 jobs at steel 
mills and 300,000 jobs at supplier industries by 
keeping those industries working during the winter 
season; and 
(6) the 6,400,000 tons of coal shipped on the 
Great Lakes during the 2006–2007 ice season kept 
the Great Lakes region supplied with electricity. 
SEC. 403. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated $153,000,000 
for necessary expenses of the Coast Guard for the design, 
acquisition, and construction of a combined buoy tender- 
icebreaker to replace icebreaking capacity on the Great 
Lakes, to remain available until expended.
TITLE V—ACQUISITION REFORM 
SEC. 501. SHORT TITLE. 
This title may be cited as the ‘‘Coast Guard Acquisi-
tion Reform Act of 2009’’. 
SEC. 502. DEFINITIONS. 
In this title, the following definitions apply: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on Transportation 
and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and 
Transportation of the Senate. 
(2) COMMANDANT.—The term ‘‘Commandant’’ 
means the Commandant of the Coast Guard. 
(3) LEVEL 1 ACQUISITION.—The term ‘‘Level 1 
acquisition’’ means— 
(A) an acquisition by the Coast Guard— 
(i) the estimated life-cycle costs of 
which exceed $1,000,000,000; or 
(ii) the estimated total acquisition 
costs of which exceed $300,000,000; or 
(B) any acquisition that the Chief Acquisi-
tion Officer of the Coast Guard determines to 
have a special interest— 
(i) due to—
(I) the experimental or tech-
nically immature nature of the asset; 
(II) the technological complexity 
of the asset; 
(III) the commitment of re-
sources; or 
(IV) the nature of the capability 
or set of capabilities to be achieved; or 
(ii) because such acquisition is a joint 
acquisition. 
(4) LEVEL 2 ACQUISITION.—The term ‘‘Level 2 
acquisition’’ means an acquisition by the Coast 
Guard— 
(A) the estimated life-cycle costs of which 
are equal to or less than $1,000,000,000, but 
greater than $300,000,000; or 
(B) the estimated total acquisition costs of 
which are equal to or less than $300,000,0000, 
but greater than $100,000,000. 
(5) LIFE-CYCLE
COST.—The term ‘‘life-cycle 
cost’’ means all costs for development, procurement, 
construction, and operations and support for a par-
ticular capability or asset, without regard to funding 
source or management control.
Subtitle A—Restrictions on the Use 
of Lead Systems Integrators 
SEC. 511. PROCUREMENT STRUCTURE. 
(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 end of the 
180-day period beginning on the date of enactment 
of this Act. 
(2) FULL AND OPEN COMPETITION.—The Com-
mandant and any lead systems integrator engaged 
by the Coast Guard shall use full and open competi-
tion for any acquisition contract awarded after the 
date of enactment of this Act, unless otherwise ex-
cepted in accordance with Federal acquisition laws 
and regulations promulgated under those laws, in-
cluding the Federal Acquisition Regulation. 
(3) NO EFFECT ON SMALL BUSINESS ACT.— 
Nothing in this subsection shall be construed to su-
persede 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
SECU-
RITY
CUTTERS
AND
3.—Notwithstanding sub-
sections (a) and (e), the Commandant may use a 
private sector entity as a lead systems integrator for 
the Coast Guard to complete the National Distress 
and Response System Modernization Program (oth-
erwise known as the ‘‘Rescue 21’’ program) and Na-
tional Security Cutters 2 and 3. 
(2) COMPLETION
OF
ACQUISITION
BY
LEAD 
SYSTEMS INTEGRATOR.—Notwithstanding subsection 
(a), the Commandant may use a private sector enti-
ty as a lead systems integrator for the Coast 
Guard— 
(A) to complete any delivery order or task 
order, including the exercise of previously estab-
lished options on a delivery order or task order 
that was issued to a lead systems integrator on 
or before the date that is 180 days after the 
date of enactment of this Act without any 
change in the quantity of capabilities or assets 
or the specific type of capabilities or assets cov-
ered by the order; 
(B) for a contract awarded after the date 
that is 180 days after the date of enactment of
this Act for acquisition of, or in support of, the 
HC–130J aircraft, the HH–65 aircraft, or the 
C4ISR system, if the requirements of sub-
section (c) are met with respect to such acquisi-
tions; 
(C) for a contract awarded after the date 
that is 180 days after the date of enactment of 
this Act for acquisition of, or in support of, 
Maritime Patrol Aircraft, if the requirements of 
subsection (c) are met with respect to such an 
acquisition; and 
(D) for the acquisition of, or in support of, 
additional National Security Cutters or Mari-
time Patrol Aircraft, if the Commandant deter-
mines that— 
(i) the acquisition is in accordance 
with Federal acquisition laws and regula-
tions promulgated under those laws, in-
cluding the Federal Acquisition Regula-
tion; 
(ii) the acquisition and the use of a 
private sector entity as a lead systems inte-
grator for the acquisition are in the best 
interest of the Federal Government; and
(iii) the requirements of subsection (c) 
are met with respect to such acquisition. 
(3) REPORT ON DECISIONMAKING PROCESS.—If 
the Commandant determines under subparagraph 
(B), (C), or (D) of subsection (b)(2) that the Coast 
Guard will use a private sector lead systems inte-
grator for an acquisition, the Commandant shall no-
tify in writing the appropriate congressional commit-
tees of the Commandant’s determination and shall 
provide a detailed rationale for the determination, at 
least 30 days before the award of a contract or 
issuance of a delivery order or task order, using a 
private sector lead systems integrator, including a 
comparison of the cost of the acquisition through the 
private sector lead systems integrator with the ex-
pected cost if the acquisition were awarded directly 
to the manufacturer or shipyard. For purposes of 
that comparison, the cost of award directly to a 
manufacturer or shipyard shall include the costs of 
Government contract management and oversight. 
(c) LIMITATION ON LEAD SYSTEMS INTEGRATORS.— 
Neither an entity performing lead systems integrator func-
tions for a Coast Guard acquisition nor a Tier 1 subcon-
tractor for any acquisition described in subparagraph (B), 
(C), or (D) of subsection (b)(2) may have a financial inter-
est in a subcontractor below the Tier 1 subcontractor level 
unless— 
(1) the subcontractor was selected by the prime 
contractor through full and open competition for 
such procurement; 
(2) the procurement was awarded by the lead 
systems integrator or a subcontractor through full 
and open competition; 
(3) the procurement was awarded by a subcon-
tractor through a process over which the lead sys-
tems integrator or a Tier 1 subcontractor exercised 
no control; or 
(4) the Commandant has determined that the 
procurement was awarded in a manner consistent 
with Federal acquisition laws and regulations pro-
mulgated under those laws, including the Federal 
Acquisition Regulation. 
(d) RULE
OF CONSTRUCTION.—The limitation in 
subsection (b)(1)(A) on the quantity and specific type of 
assets to which subsection (b) applies shall not be con-
strued to apply to the modification of the number or type 
of any sub-systems or other components of a vessel or air-
craft described in subparagraph (B), (C), or (D) of sub-
section (b)(2).
(e) TERMINATION DATE FOR EXCEPTIONS.—Except 
as described in subsection (b)(1), the Commandant may 
not use a private sector entity as a lead systems integrator 
for acquisition contracts awarded, or task orders or deliv-
ery orders issued, after the earlier of— 
(1) September 30, 2011; or 
(2) the date on which the Commandant certifies 
in writing to the appropriate congressional commit-
tees that the Coast Guard has available and can re-
tain sufficient acquisition workforce personnel and 
expertise within the Coast Guard, through an ar-
rangement with other Federal agencies, or through 
contracts or other arrangements with private sector 
entities, to perform the functions and responsibilities 
of the lead systems integrator in an efficient and 
cost-effective manner. 
Subtitle B—Coast Guard 
Acquisition Policy 
SEC. 521. OPERATIONAL REQUIREMENTS. 
(a) IN GENERAL.—No Level 1 or Level 2 acquisition 
program may be initiated by the Coast Guard, and no pro-
duction contract may be awarded for such an acquisition, 
unless the Commandant has approved an operational re-
quirement for such acquisition.
(b) OPERATIONAL REQUIREMENT FOR ACQUISITION 
PROGRAMS.— 
(1) IN GENERAL.—The Commandant shall es-
tablish mature and stable operational requirements 
for acquisition programs. 
(2) ELEMENTS.—Prior to establishing oper-
ational requirements under paragraph (1), the Com-
mandant shall— 
(A) prepare a preliminary statement of 
need, a concept of operations, an analysis of al-
ternatives or the equivalent, an estimate of life- 
cycle costs, and requirements for interoper-
ability with other capabilities and assets within 
and external to the Coast Guard; and 
(B) in preparing the concept of operations 
under subparagraph (A), coordinate with acqui-
sition and support professionals, requirements 
officials, operational users and maintainers, and 
resource officials who can ensure the appro-
priate consideration of performance, cost, 
schedule and risk trade-offs. 
(c) CONSIDERATION
OF TRADE-OFFS.—In estab-
lishing operational requirements under subsection (a), the 
Commandant shall develop and implement mechanisms to 
ensure that trade-offs among performance, cost, schedule,
and risk are considered in the establishment of operational 
requirements for development and production of a Level 
1 or Level 2 acquisition. 
(d) ELEMENTS.—The mechanisms required under 
this section shall ensure at a minimum that Coast Guard 
officials responsible for acquisition management, budget, 
and cost estimating functions have the authority to de-
velop cost estimates and raise cost and schedule matters 
at any point in the process of establishing operational re-
quirements for a Level 1 or Level 2 acquisition. 
SEC. 522. 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 or more years and with a 
total acquisition cost that is equal to or exceeds 
$10,000,000 awarded or issued by the Coast Guard after 
the date of enactment of this Act— 
(1) provides that all certifications for an end- 
state capability or asset under such contract, deliv-
ery order, or task order, respectively, will be con-
ducted 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 con-
tractor and subcontractor performance be based on 
the status of all work performed, including the ex-
tent to which the work performed met all perform-
ance, 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 
general Atlantic and North Pacific Sea conditions, 
maximum 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 this Act does not include any
provision allowing for equitable adjustment that differs 
from the Federal Acquisition Regulation. 
(c) EXTENSION OF PROGRAM.—Any contract, con-
tract modification, or award term extending a contract 
with a lead systems integrator— 
(1) shall not include any minimum require-
ments for the purchase of a given or determinable 
number of specific capabilities or assets; and 
(2) shall be reviewed by an independent third 
party with expertise in acquisition management, and 
the results of that review shall be submitted to the 
appropriate congressional committees at least 60 
days prior to the award of the contract, contract 
modification, or award term. 
SEC. 523. LIFE-CYCLE COST ESTIMATES. 
(a) IN GENERAL.—The Commandant shall imple-
ment mechanisms to ensure the development and regular 
updating of life-cycle cost estimates for each acquisition 
with a total acquisition cost that equals or exceeds 
$10,000,000 and an expected service life of 10 or more 
years, and to ensure that these estimates are considered 
in decisions to develop or produce new or enhanced capa-
bilities and assets. 
(b) TYPES OF ESTIMATES.—In addition to life-cycle 
cost estimates that may be developed by acquisition pro-
gram offices, the Commandant shall require that an inde-
pendent life-cycle cost estimate be developed for each 
Level 1 or Level 2 acquisition program or project. 
(c) REQUIRED UPDATES.—For each Level 1 or Level 
2 acquisition program or project the Commandant shall 
require that life-cycle cost estimates shall be updated be-
fore each milestone decision is concluded and the program 
or project enters a new acquisition phase. 
SEC. 524. TEST AND EVALUATION. 
(a) TEST AND EVALUATION MASTER PLAN.— 
(1) IN GENERAL.—For any Level 1 or Level 2 
acquisition program or project the Coast Guard 
Chief Acquisition Officer must approve a Test and 
Evaluation Master Plan specific to the acquisition 
program or project for the capability, asset, or sub- 
systems of the capability or asset and intended to 
minimize technical, cost, and schedule risk as early 
as practicable in the development of the program or 
project. 
(2) TEST
AND
EVALUATION
STRATEGY.—The 
TEMP shall— 
(A) set forth an integrated test and evalua-
tion strategy that will verify that capability-level 
or asset-level and sub-system-level design and 
development, 
including 
performance 
and
supportability, have been sufficiently proven be-
fore the capability, asset, or sub-system of the 
capability 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 TEMP.—At a min-
imum, the TEMP shall identify— 
(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;
sub-systems concerned and to the Coast Guard Chief 
Acquisition Officer. 
(4) REPORTING OF SAFETY CONCERNS.—Any 
safety concerns that have been reported to the Chief 
Acquisition Officer for an acquisition program or 
project shall be reported by the Commandant to the 
appropriate congressional committees at least 90 
days before the award of any contract or issuance of 
any delivery order or task order for low, initial, or 
full-rate production of the capability or asset con-
cerned if they will remain uncorrected or unmiti-
gated at the time such a contract is awarded or de-
livery order or task order is issued. The report shall 
include a justification for the approval of that level 
of production of the capability or asset before the 
safety concern is corrected or mitigated. The report 
shall also include an explanation of the actions that 
will be taken to correct or mitigate the safety con-
cern, the date by which those actions will be taken, 
and the adequacy of current funding to correct or 
mitigate the safety concern. 
(5) 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 sub-systems of 
the capability or asset not previously identified dur-
ing developmental or operational test and evaluation, 
the Commandant shall— 
(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 eval-
uation event or activity that identified the safe-
ty concern; and 
(B) notify the appropriate congressional 
Committee of the safety concern not later than 
30 days after notification is made to the pro-
gram manager and Chief Acquisition Officer, 
and include in such notification— 
(i) an explanation of the actions that 
will be taken to correct or mitigate the 
safety concern in all capabilities or assets 
and sub-systems of the capabilities or as-
sets 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 
safety concern in previously produced ca-
pabilities or assets and sub-systems of the
capabilities 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 
sub-systems of the capabilities or assets 
and in previously produced capabilities or 
assets and sub-systems. 
(c) DEFINITIONS.—In this section: 
(1) DEVELOPMENTAL
TEST
AND
EVALUA-
TION.—The term ‘‘developmental test and evalua-
tion’’ means— 
(A) the testing of a capability or asset and 
the sub-systems of the capability or asset to de-
termine whether they meet all contractual per-
formance requirements, including technical per-
formance requirements, supportability require-
ments, and interoperability requirements and 
related specifications; and 
(B) the evaluation of the results of such 
testing. 
(2) OPERATIONAL
TEST
AND
EVALUATION.— 
The term ‘‘operational test and evaluation’’ means— 
(A) the testing of a capability or asset and 
the sub-systems of the capability or asset,
under conditions similar to those in which the 
capability or asset and subsystems will actually 
be deployed, for the purpose of determining the 
effectiveness and suitability of the capability or 
asset and sub-systems for use by typical Coast 
Guard users to conduct those missions for 
which the capability or asset and sub-systems 
are intended to be used; and 
(B) the evaluation of the results of such 
testing. 
(3) SAFETY CONCERN.—The term ‘‘safety con-
cern’’ means any hazard associated with a capability 
or asset or a sub-system of a capability or asset that 
is likely to cause serious bodily injury or death to a 
typical Coast Guard user in testing, maintaining, re-
pairing, or operating the capability, asset, or sub- 
system or any hazard associated with the capability, 
asset, or sub-system that is likely to cause major 
damage to the capability, asset, or sub-system dur-
ing the course of its normal operation by a typical 
Coast Guard user. 
(4) TEMP.—The term ‘‘TEMP’’ means a Test 
and Evaluation Master Plan for which approval is 
required under this section.
SEC. 525. CAPABILITY STANDARDS. 
(a) CUTTER CLASSIFICATION.—The Commandant 
shall cause each cutter, other than a National Security 
Cutter, acquired by the Coast Guard and delivered after 
the date of enactment of this Act to be classed by the 
American Bureau of Shipping before final acceptance. 
(b) TEMPEST TESTING.—The Commandant shall— 
(1) cause all electronics on all aircraft, surface, 
and shore capabilities and assets that require TEM-
PEST certification and that are delivered after the 
date of enactment of this Act to be tested in accord-
ance with TEMPEST standards and communication 
security (COMSEC) standards by an independent 
third party that is authorized by the Federal Gov-
ernment to perform such testing; and 
(2) certify that the capabilities and assets meet 
all applicable TEMPEST requirements. 
(c) NATIONAL SECURITY CUTTERS.— 
(1) NATIONAL SECURITY CUTTERS 1 AND 2.— 
Not later than 90 days before the Coast Guard 
awards any contract or issues any delivery order or 
task order to strengthen the hull of either of Na-
tional Security Cutter 1 or 2 to resolve the struc-
tural design and performance issues identified in the 
Department of Homeland Security Inspector Gen-
eral’s report OIG–07–23 dated January 2007, the
Commandant shall submit to the appropriate con-
gressional committees and the Committee on Home-
land Security of the House of Representatives all re-
sults of an assessment of the proposed hull strength-
ening design conducted by the Coast Guard, includ-
ing— 
(A) a description in detail of the extent to 
which the hull strengthening measures to be im-
plemented on those cutters will enable the cut-
ters to meet contract and performance require-
ments; 
(B) a cost benefit analysis of the proposed 
hull strengthening measures for National Secu-
rity Cutters 1 and 2; and 
(C) a description of any operational re-
strictions that would have to be applied to ei-
ther National Security Cutter 1 or 2 if the pro-
posed hull strengthening measures were not im-
plemented on either cutter. 
(2) OTHER VESSELS.—The Commandant shall 
cause the design and construction of each National 
Security Cutter, other than National Security Cut-
ters 1, 2, and 3, to be assessed by an independent 
third party with expertise in vessel design and con-
struction certification.
(d) AIRCRAFT AIRWORTHINESS.—The Commandant 
shall cause all aircraft and aircraft engines acquired by 
the Coast Guard and delivered after the date of enactment 
of this Act to be assessed for airworthiness by an inde-
pendent third party with expertise in aircraft and aircraft 
engine certification, before final acceptance. 
SEC. 526. ACQUISITION PROGRAM REPORTS. 
Any Coast Guard Level 1 or Level 2 acquisition pro-
gram or project may not begin to obtain any capability 
or asset or proceed beyond that phase of its development 
that entails approving the supporting acquisition until the 
Commandant submits to the appropriate congressional 
committees the following: 
(1) The key performance parameters, the key 
system attributes, and the operational performance 
attributes of the capability and asset to be acquired 
under the proposed acquisition program or project 
will be built to achieve. 
(2) A detailed list of the systems or other capa-
bilities with which the capability or asset to be ac-
quired is intended to be interoperable, including an 
explanation of the attributes of interoperability. 
(3) The anticipated acquisition program base-
line and acquisition unit cost for the capability or
asset to be produced and deployed under the pro-
gram or project. 
(4) A detailed schedule for the acquisition proc-
ess showing when all capability and asset acquisi-
tions are to be completed and when all acquired ca-
pabilities and assets are to be initially and fully de-
ployed. 
SEC. 527. 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 Activ-
ity for approval of an undefinitized contractual action cov-
ered under subsection (a) must include a description of 
the anticipated effect on requirements of the Coast Guard 
if a delay is incurred for the purposes of determining con-
tractual terms, specifications, and price before perform-
ance 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 contrac-
tual action provides for agreement upon contractual 
terms, specification, and price by the earlier of— 
(A) the end of the 180-day period begin-
ning on the date on which the contractor sub-
mits a qualifying proposal to definitize the con-
tractual 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 over-
all 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-
gate under such contractual action an amount 
that exceeds 50 percent of the negotiated over-
all ceiling price until the contractual terms, 
specifications, and price are definitized for such 
contractual action. 
(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), if a contractor submits a quali-
fying proposal to definitize an undefinitized 
contractual action before an amount that ex-
ceeds 50 percent of the negotiated overall ceil-
ing price is obligated on such action, the con-
tracting officer for such action may not obligate 
with respect to such contractual action an 
amount that exceeds 75 percent of the nego-
tiated 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, 
United States Code); 
(B) an operation in response to an emer-
gency that poses an unacceptable threat to 
human health or safety or to the marine envi-
ronment; or 
(C) 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 contrac-
tual 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 
inclusion 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 
approves such modification as being— 
(1) good business practice; and 
(2) in the best interests of the United States. 
(f) ALLOWABLE PROFIT.—The Commandant shall 
ensure that the profit allowed on an undefinitized contrac-
tual action for which the final price is negotiated after 
a substantial portion of the performance required is com-
pleted reflects— 
(1) the possible reduced cost risk of the con-
tractor with respect to costs incurred during per-
formance of the contract before the final price is ne-
gotiated; and 
(2) the reduced cost risk of the contractor with 
respect to costs incurred during performance of the 
remaining 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 ac-
tion 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. 
(B) EXCLUSION.—Such term does not in-
clude contractual actions with respect to the fol-
lowing: 
(i) Foreign military sales. 
(ii) Purchases in an amount not in ex-
cess of the amount of the simplified acqui-
sition threshold. 
(iii) Special access programs. 
(2) QUALIFYING PROPOSAL.—The term ‘‘quali-
fying proposal’’ means a proposal that contains suf-
ficient information to enable complete and meaning-
ful audits of the information contained in the pro-
posal as determined by the contracting officer. 
SEC. 
528. 
GUIDANCE 
ON 
EXCESSIVE 
PASS-THROUGH 
CHARGES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Commandant shall issue 
guidance to ensure that pass-through charges on con-
tracts, subcontracts, delivery orders, and task orders that 
are entered into with a private entity acting as a lead sys-
tems integrator by or on behalf of the Coast Guard are 
not excessive in relation to the cost of work performed by 
the relevant contractor or subcontractor. The guidance 
shall, at a minimum— 
(1) set forth clear standards for determining 
when no, or negligible, value has been added to a 
contract by a contractor or subcontractor; 
(2) set forth procedures for preventing the pay-
ment by the Government of excessive pass-through 
charges; and 
(3) identify any exceptions determined by the 
Commandant to be in the best interest of the Gov-
ernment. 
(b) 
EXCESSIVE
PASS-THROUGH
CHARGE
DE-
FINED.—In this section the term ‘‘excessive pass-through 
charge’’, with respect to a contractor or subcontractor that
100 
adds no, or negligible, value to a contract or subcontract, 
means a charge to the Government by the contractor or 
subcontractor that is for overhead or profit on work per-
formed by a lower-tier contractor or subcontractor, other 
than reasonable charges for the direct costs of managing 
lower-tier contractors and subcontracts and overhead and 
profit based on such direct costs. 
(c) APPLICATION
OF
GUIDANCE.—The guidance 
under this subsection shall apply to contracts awarded to 
a private entity acting as a lead systems integrator by or 
on behalf of the Coast Guard on or after the date that 
is 360 days after the date of enactment of this Act. 
SEC. 529. ACQUISITION OF MAJOR CAPABILITIES: ALTER-
NATIVES ANALYSIS. 
The Coast Guard may not acquire an experimental 
or technically immature capability or asset or implement 
a Level 1 or Level 2 acquisition, unless it has conducted 
an alternatives analysis for the capability or asset to be 
acquired in the concept and technology development phase 
of the acquisition process for the capability or asset. Such 
analysis shall be conducted by a federally funded research 
and development center, a qualified entity of the Depart-
ment of Defense, or a similar independent third party enti-
ty that has appropriate acquisition expertise. Such alter-
natives analysis shall include—
101 
(1) an assessment of the technical maturity of 
the capability or asset and technical and other risks; 
(2) an examination of capability, interoper-
ability, and other advantages and disadvantages; 
(3) an evaluation of whether different combina-
tions or quantities of specific capabilities or assets 
could meet the Coast Guard’s overall performance 
needs; 
(4) a discussion of key assumptions and vari-
ables, and sensitivity to change in such assumptions 
and variables; 
(5) when an alternative is an existing capa-
bility, asset, or prototype, an evaluation of relevant 
safety and performance records and costs; 
(6) a calculation of life-cycle costs, including— 
(A) an examination of development costs 
and the levels of uncertainty associated with 
such estimated costs; 
(B) an examination of likely production 
and deployment costs and the levels of uncer-
tainty associated with such estimated costs; 
(C) an examination of likely operating and 
support costs and the levels of uncertainty asso-
ciated with such estimated costs;
102 
(D) if they are likely to be significant, an 
examination of likely disposal costs and the lev-
els of uncertainty associated with such esti-
mated costs; and 
(E) such additional measures the Com-
mandant determines to be necessary for appro-
priate evaluation of the capability or asset; and 
(7) the business case for each viable alternative. 
SEC. 530. COST OVERRUNS AND DELAYS. 
(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 Acquisition 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 in-
dividual 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 ca-
pability or asset or class of capabilities or assets to
103 
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 
acquisition 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 ac-
tions 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 20 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 program or project 
of the Coast Guard, the Commandant shall include in the
104 
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 program or project 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 pro-
vide equal or greater capability in both a more cost- 
effective 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. 
SEC. 531. REPORT ON FORMER COAST GUARD OFFICIALS 
EMPLOYED BY CONTRACTORS TO THE AGEN-
CY. 
(a) REPORT REQUIRED.—Not later than December 
31, 2009, and annually thereafter, the Comptroller Gen-
eral of the United States shall submit a report to the ap-
propriate congressional committees on the employment 
during the preceding year by Coast Guard contractors of 
individuals who were Coast Guard officials in the previous 
5-year period. The report shall assess the extent to which
105 
former Coast Guard officials were provided compensation 
by Coast Guard contractors in the preceding calendar 
year. 
(b) OBJECTIVES OF REPORT.—At a minimum, the 
report required by this section shall assess the extent to 
which former Coast Guard officials who receive compensa-
tion from Coast Guard contractors have been assigned by 
those contractors to work on contracts or programs be-
tween the contractor and the Coast Guard, including con-
tracts or programs for which the former official personally 
had oversight responsibility or decisionmaking authority 
when they served in or worked for the Coast Guard. 
(c) CONFIDENTIALITY REQUIREMENT.—The report 
required by this subsection shall not include the names 
of the former Coast Guard officials who receive compensa-
tion from Coast Guard contractors. 
(d) ACCESS TO INFORMATION.—A Coast Guard con-
tractor shall provide the Comptroller General access to in-
formation requested by the Comptroller General for the 
purpose of conducting the study required by this section. 
(e) DEFINITIONS.—In this section: 
(1) COAST
GUARD
CONTRACTOR.—The term 
‘‘Coast Guard contractor’’ includes any person that 
received at least $10,000,000 in contractor awards
106 
from the Coast Guard in the calendar year covered 
by the annual report. 
(2) COAST GUARD OFFICIAL.—The term ‘‘Coast 
Guard official’’ includes former officers of the Coast 
Guard who were compensated at a rate of pay for 
grade O–7 or above during the calendar year prior 
to the date on which they separated from the Coast 
Guard, and former civilian employees of the Coast 
Guard who served at any level of the Senior Execu-
tive Service under subchapter VIII of chapter 53 of 
title 5, United States Code, during the calendar year 
prior to the date on which they separated from the 
Coast Guard. 
SEC. 532. 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 opportunities to make use of Department of Defense 
contracts, and contracts of other appropriate agencies, to 
obtain the best possible price for capabilities and assets 
acquired for the Coast Guard. 
(b) INTER-SERVICE TECHNICAL ASSISTANCE.—The 
Commandant may enter into a memorandum of under-
standing or a memorandum of agreement with the Sec-
107 
retary of the Navy to obtain the assistance of the Office 
of the Assistant Secretary of the Navy for Research, De-
velopment, and Acquisition, including the Navy Systems 
Commands, with the oversight of Coast Guard major ac-
quisition programs. Such memorandum of understanding 
or memorandum of agreement shall, at a minimum, pro-
vide for— 
(1) the exchange of technical assistance and 
support that the Coast Guard Chief Acquisition Offi-
cer, Coast Guard Chief Engineer, and the Coast 
Guard Chief Information Officer may identify; 
(2) the use, as appropriate, of Navy technical 
expertise; and 
(3) the temporary assignment or exchange of 
personnel between the Coast Guard and the Office 
of the Assistant Secretary of the Navy for Research, 
Development, and Acquisition, including Naval Sys-
tems Commands, to facilitate the development of or-
ganic capabilities in the Coast Guard. 
(c) TECHNICAL REQUIREMENT APPROVAL PROCE-
DURES.—The Coast Guard Chief Acquisition Officer shall 
adopt, to the extent practicable, procedures that are simi-
lar to those used by the senior procurement executive of 
the Department of the Navy to approve all technical re-
quirements.
108 
(d) ASSESSMENT.—Within 180 days after the date 
of enactment of this Act, the Comptroller General shall 
transmit a report to the appropriate congressional com-
mittees that— 
(1) contains an assessment of current Coast 
Guard acquisition and management capabilities to 
manage Level 1 and Level 2 acquisitions; 
(2) includes recommendations as to how the 
Coast Guard can improve its acquisition manage-
ment, either through internal reforms or by seeking 
acquisition expertise from the Department of De-
fense; and 
(3) addresses specifically the question of wheth-
er the Coast Guard can better leverage Department 
of Defense or other agencies’ contracts that would 
meet the needs of Level 1 or Level 2 acquisitions in 
order to obtain the best possible price. 
Subtitle C—Coast Guard Personnel 
SEC. 541. CHIEF ACQUISITION OFFICER. 
(a) IN GENERAL.—Chapter 3 of title 14, United 
States Code, is further amended by adding at the end the 
following: 
‘‘§ 56. Chief Acquisition Officer 
‘‘(a) ESTABLISHMENT OF CHIEF ACQUISITION OFFI-
CER.—There shall be in the Coast Guard a Chief Acquisi-
109 
tion Officer selected by the Commandant who shall be a 
Rear Admiral or civilian from the Senior Executive Service 
(career reserved) and who meets the qualifications set 
forth under subsection (b). The Chief Acquisition Officer 
shall serve at the Assistant Commandant level and have 
acquisition management as that individual’s primary duty. 
‘‘(b) QUALIFICATIONS.— 
‘‘(1) The Chief Acquisition Officer and any 
Flag Officer serving in the Acquisitions Directorate 
shall be an acquisition professional with a program 
manager level III certification and must have at 
least 10 years experience in an acquisition position, 
of which at least 4 years were spent in one of the 
following qualifying positions: 
‘‘(A) Program executive officer. 
‘‘(B) Program manager of a Level 1 or 
Level 2 acquisition. 
‘‘(C) Deputy program manager of a Level 
1 or Level 2 acquisition. 
‘‘(D) Project manager for a Level 1 or 
Level 2 acquisition. 
‘‘(E) Any other acquisition position of sig-
nificant responsibility in which the primary du-
ties are supervisory or management duties.
110 
‘‘(2) The Commandant shall periodically publish 
a list of the positions designated under this sub-
section. 
‘‘(c) AUTHORITY AND FUNCTIONS OF THE CHIEF AC-
QUISITION OFFICER.—The functions of the Chief Acquisi-
tion Officer shall include— 
‘‘(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, assets, 
and services by the Coast Guard by establishing poli-
cies, procedures, and practices that ensure that the 
Coast Guard receives a sufficient number of sealed 
bids or competitive proposals from responsible 
sources to fulfill the Government’s requirements, in-
cluding performance and delivery schedules, at the 
lowest cost or best value considering the nature of 
the property, capability, asset, or service procured; 
‘‘(3) making acquisition decisions in concur-
rence with the technical authority of the Coast
111 
Guard, as designated by the Commandant, and con-
sistent with all other applicable 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 pol-
icy for the Coast Guard, including implementation of 
the unique acquisition policies, regulations, and 
standards 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.’’.
112 
(b) APPLICATION
OF
QUALIFICATION
REQUIRE-
MENT.—Section 56(b) of title 14, United States Code, as 
amended by this section, shall apply beginning October 1, 
2011. 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is further amended by 
adding at the end the following: 
‘‘Sec. 56. Chief Acquisition Officer.’’. 
(d) ELEVATION OF DISPUTES TO THE CHIEF ACQUI-
SITION OFFICER.—Within 45 days after the elevation to 
the Chief Acquisition Officer of any design or other dis-
pute regarding a Level 1 or Level 2 acquisition, the Com-
mandant shall provide to the appropriate congressional 
committees a detailed description of the issue and the ra-
tionale underlying the decision taken by the Chief Acquisi-
tion Officer to resolve the issue. 
(e) SPECIAL RATE SUPPLEMENTS.— 
(1) REQUIREMENT TO ESTABLISH.—Not later 
than 1 year after the date of enactment of this Act 
and in accordance with part 9701.333 of title 5, 
Code of Federal Regulations, the Commandant shall 
establish special rate supplements that provide high-
er pay levels for employees necessary to carry out 
the amendment made by this section.
113 
(2) SUBJECT
TO
APPROPRIATIONS.—The re-
quirement under paragraph (1) is subject to the 
availability of appropriations. 
SEC. 542. IMPROVEMENTS IN COAST GUARD ACQUISITION 
MANAGEMENT. 
(a) PROGRAM AND PROJECT MANAGERS.—An indi-
vidual may not be assigned as the program manager for 
a Level 1 acquisition unless the individual holds a Level 
III acquisition certification as a program manager. 
(b) INTEGRATED
PRODUCT
TEAMS.—Integrated 
product teams, and all teams that oversee integrated prod-
uct teams, shall be chaired by officers, members, or em-
ployees of the Coast Guard. 
(c) TECHNICAL
AUTHORITY.—The Commandant 
shall maintain or designate the technical authority to es-
tablish, approve, and maintain technical requirements. 
Any such designation shall be made in writing and may 
not be delegated to the authority of the Chief Acquisition 
Officer established by section 55 of title 14, United States 
Code. 
(d) DESIGNATION OF POSITIONS IN THE ACQUISI-
TION 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 ac-
114 
quisition-related functions at Coast Guard head-
quarters and field activities. 
(2) REQUIRED POSITIONS.—In designating po-
sitions under subsection (a), the Commandant shall 
include, at a minimum, positions encompassing the 
following competencies and functions: 
(A) Program management. 
(B) Systems planning, research, develop-
ment, engineering, and testing. 
(C) Procurement, including contracting. 
(D) Industrial and contract property man-
agement. 
(E) Life-cycle logistics. 
(F) Quality control and assurance. 
(G) Manufacturing and production. 
(H) Business, cost estimating, financial 
management, and auditing. 
(I) Acquisition education, training, and ca-
reer development. 
(J) Construction and facilities engineering. 
(K) Testing and evaluation. 
(3) ACQUISITION MANAGEMENT HEADQUARTER 
ACTIVITIES.—The Commandant shall also designate 
as positions in the acquisition workforce under para-
115 
graph (1) those acquisition-related positions located 
at Coast Guard headquarters units. 
(4) APPROPRIATE EXPERTISE REQUIRED.—The 
Commandant shall ensure that each individual as-
signed to a position in the acquisition workforce has 
the appropriate expertise to carry out the respon-
sibilities of that position. 
(e) MANAGEMENT INFORMATION SYSTEM.— 
(1) IN GENERAL.—The Commandant shall es-
tablish a management information system capability 
to improve acquisition workforce management and 
reporting. 
(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 positions 
in the acquisition workforce or holding acquisi-
tion-related certifications. 
(B) Promotion rates for officers and mem-
bers of the Coast Guard in the acquisition 
workforce. 
(f) REPORT ON ADEQUACY OF ACQUISITION WORK-
FORCE.—
116 
(1) IN GENERAL.—The Commandant shall re-
port to the Congress by July 1 of each year on the 
scope of the acquisition activities to be performed in 
the next fiscal year and on the adequacy of the cur-
rent acquisition workforce to meet that anticipated 
workload. 
(2) CONTENTS.—The report shall— 
(A) specify the number of officers, mem-
bers, and employees of the Coast Guard cur-
rently and planned to be assigned to each posi-
tion designated under subsection (d); and 
(B) identify positions that are understaffed 
to meet the anticipated acquisition workload, 
and actions that will be taken to correct such 
understaffing. 
(g) APPOINTMENTS TO ACQUISITION POSITIONS.— 
The Commandant shall ensure that no requirement or 
preference for officers or members of the Coast Guard is 
used in the consideration of persons for positions in the 
acquisition workforce. 
(h) CAREER PATHS.— 
(1) IDENTIFICATION
OF
CAREER
PATHS.—To 
establish acquisition management as a core com-
petency of the Coast Guard, the Commandant 
shall—
117 
(A) ensure that career paths for officers, 
members, and employees of the Coast Guard 
who wish to pursue careers in acquisition are 
identified in terms of the education, training, 
experience, and assignments necessary for ca-
reer progression of those officers, members, and 
employees to the most senior positions in the 
acquisition workforce; and 
(B) publish information on such career 
paths. 
(2) PROMOTION
PARITY.—The Commandant 
shall ensure that promotion parity is established for 
officers and members of the Coast Guard who have 
been assigned to the acquisition workforce relative to 
officers and members who have not been assigned to 
the acquisition workforce. 
(i) BALANCED WORKFORCE POLICY.—In the devel-
opment of acquisition workforce policies under this section 
with respect to any civilian employees or applicants for 
employment, the Commandant shall, consistent with the 
merit system principles set out in paragraphs (1) and (2) 
of section 2301(b) of title 5, United States Code, take into 
consideration the need to maintain a balanced workforce 
in which women and members of racial and ethnic minor-
118 
ity groups are appropriately represented in Government 
service. 
(j) GUIDANCE ON TENURE AND ACCOUNTABILITY OF 
PROGRAM MANAGERS.— 
(1) ISSUANCE OF GUIDANCE.—Not later than 1 
year after the date of enactment of this Act, the 
Commandant shall issue guidance to address the 
qualifications, resources, responsibilities, tenure, and 
accountability of program managers for the manage-
ment of acquisition programs and projects. The 
guidance shall address, at a minimum— 
(A) the qualifications that shall be required 
of program managers, including the number of 
years of acquisition experience and the profes-
sional training levels to be required of those ap-
pointed to program management positions; 
(B) authorities available to program man-
agers, including, to the extent appropriate, the 
authority to object to the addition of new pro-
gram requirements that would be inconsistent 
with the parameters established for an acquisi-
tion program; and 
(C) the extent to which a program man-
ager who initiates a new program or project will 
continue in management of that program or
119 
project without interruption until the delivery of 
the first production units of the program. 
(2) STRATEGY.— 
(A) IN
GENERAL.—Not later than 18 
months after the date of enactment of this Act, 
the Commandant shall develop a comprehensive 
strategy for enhancing the role of Coast Guard 
program managers in developing and carrying 
out acquisition programs. 
(B) MATTERS
TO
BE
ADDRESSED.—The 
strategy required by this section shall address, 
at a minimum— 
(i) the creation of a specific career 
path and career opportunities for individ-
uals who are or may become program man-
agers, including the rotational assignments 
that will be provided to program managers; 
(ii) the provision of enhanced training 
and educational opportunities for individ-
uals who are or may become program man-
agers; 
(iii) the provision of mentoring sup-
port to current and future program man-
agers by experienced senior executives and 
program 
managers 
within 
the 
Coast
120 
Guard, and through rotational assignments 
to the Department of Defense; 
(iv) the methods by which the Coast 
Guard will collect and disseminate best 
practices and lessons learned on systems 
acquisition to enhance program manage-
ment throughout the Coast Guard; 
(v) the templates and tools that will 
be used to support improved data gath-
ering and analysis for program manage-
ment and oversight purposes, including the 
metrics that will be utilized to assess the 
effectiveness of Coast Guard program 
managers in managing systems acquisition 
efforts; 
(vi) a description in detail of how the 
Coast Guard will promote a balanced work-
force in which women and members of ra-
cial and ethnic minority groups are appro-
priately represented in Government service; 
and 
(vii) the methods by which the ac-
countability of program managers for the 
results of acquisition programs will be in-
creased.
121 
SEC. 543. RECOGNITION OF COAST GUARD PERSONNEL 
FOR EXCELLENCE IN ACQUISITION. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Commandant shall com-
mence implementation of a program to recognize excellent 
performance by individuals and teams comprised of offi-
cers, members, and employees of the Coast Guard that 
contributed to the long-term success of a Coast Guard ac-
quisition program or project. 
(b) ELEMENTS.—The program required by sub-
section (a) shall include the following: 
(1) Specific award categories, criteria, and eligi-
bility and manners of recognition. 
(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. 
(3) Procedures for the evaluation of nomina-
tions for recognition under the program by one or 
more panels of individuals from the Government, 
academia, and the private sector who have such ex-
pertise and are appointed in such manner as the 
Commandant shall establish for the purposes of this 
program. 
(c) AWARD OF CASH BONUSES.—As part of the pro-
gram required by subsection (a), the Commandant, sub-
122 
ject to the availability of appropriations, may award to any 
individual 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. 
SEC. 544. COAST GUARD ACQUISITION WORKFORCE EXPE-
DITED HIRING AUTHORITY. 
(a) IN GENERAL.—For purposes of sections 3304, 
5333, and 5753 of title 5, United States Code, the Com-
mandant may— 
(1) designate any category of acquisition posi-
tions within the Coast Guard as shortage category 
positions; and 
(2) use the authorities in such sections to re-
cruit and appoint highly qualified persons directly to 
positions so designated. 
(b) LIMITATION.—The Commandant may not ap-
point a person to a position of employment under this sub-
section after September 30, 2012. 
TITLE VI—MARITIME 
WORKFORCE DEVELOPMENT 
SEC. 601. SHORT TITLE. 
This title may be cited as the ‘‘Maritime Workforce 
Development Act’’.
123 
SEC. 602. MARITIME EDUCATION LOAN PROGRAM. 
(a) IN GENERAL.—Chapter 517 of title 46, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 51705. Maritime career training loan program 
‘‘(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish a maritime career training loan pro-
gram (in this section referred to as the ‘program’) in ac-
cordance with the requirements of this section. 
‘‘(b) PURPOSE.—The purpose of the program shall 
be to make maritime career training loans available to eli-
gible students to provide for the training of United States 
mariners. 
‘‘(c) ADMINISTRATION.—The program shall be car-
ried out by the Secretary, acting through the Adminis-
trator of the Maritime Administration. 
‘‘(d) DUTIES.—The Secretary shall— 
‘‘(1) allocate, on an annual basis, the award of 
loans under the program based on the needs of stu-
dents; 
‘‘(2) develop an application process and eligi-
bility criteria for the award of loans under the pro-
gram; 
‘‘(3) approve applications for loans under the 
program based on the eligibility criteria and alloca-
tions made under paragraph (1); and
124 
‘‘(4) designate maritime training institutions at 
which loans made under the program may be used. 
‘‘(e) DESIGNATION OF MARITIME TRAINING INSTITU-
TIONS.— 
‘‘(1) IN
GENERAL.—In designating maritime 
training institutions under subsection (d)(4), the 
Secretary— 
‘‘(A) may include Federal, State, and com-
mercial training institutions and nonprofit 
training organizations, except that under-
graduate students at the United States Mer-
chant Marine Academy shall not be eligible for 
loans under the program; 
‘‘(B) shall designate institutions based on 
geographic diversity and scope of classes of-
fered; 
‘‘(C) shall ensure that designated institu-
tions have the ability to administer the pro-
gram; and 
‘‘(D) shall ensure that designated institu-
tions meet requirements to provide training in-
struction for appropriate Coast Guard-approved 
training instruction. 
‘‘(2) EXCLUSIONS.—The Secretary—
125 
‘‘(A) may exclude from participation in the 
program a maritime training institution that 
has had severe performance deficiencies, includ-
ing deficiencies demonstrated by audits or pro-
gram reviews conducted during the 5 calendar 
years immediately preceding the present year; 
‘‘(B) shall exclude from participation in 
the program a maritime training institution 
that has delinquent or outstanding debts to the 
United States, unless such debts are being re-
paid under or in accordance with a repayment 
arrangement satisfactory to the United States, 
or the Secretary in the Secretary’s discretion 
determines that the existence or amount of any 
such debts has not been finally determined by 
the appropriate Federal agency; 
‘‘(C) may exclude from participation in the 
program a maritime training institution that 
has failed to comply with quality standards es-
tablished by the Department of Labor, the 
Coast Guard, or a State; and 
‘‘(D) may establish such other criteria as 
the Secretary determines will protect the finan-
cial interest of the United States and promote 
the purposes of this section.
136 
‘‘(B) any other monies paid to the Sec-
retary by or on behalf of individuals under the 
program. 
‘‘(3) AVAILABILITY OF AMOUNTS.—Amounts in 
the fund shall be available to the Secretary, without 
further appropriation— 
‘‘(A) to cover the administrative costs of 
the program, including the maintenance of 
records and making collections under this sec-
tion; and 
‘‘(B) to the extent that amounts remain 
available after paying such administrative costs, 
to make loans under the program. 
‘‘(4) MAINTENANCE
OF
RECORDS.—The Sec-
retary shall maintain accurate records of the admin-
istrative costs referred to in paragraph (3)(A). 
‘‘(k) ANNUAL REPORT.—The Secretary, on an an-
nual basis, shall submit to the Committee on Transpor-
tation and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and Transpor-
tation of the Senate a report on the program, including— 
‘‘(1) the total amount of loans made under the 
program in the preceding year; 
‘‘(2) the number of students receiving loans 
under the program in the preceding year; and
163 
the transmission of the President’s budget submission 
under section 1105 of title 31. 
‘‘(d) ACHIEVEMENT OF GOALS.— 
‘‘(1) PROGRESS
ASSESSMENT.—No less fre-
quently than semiannually, the Coast Guard Com-
mandant shall assess the progress of the Coast 
Guard toward achieving the goals set forth in sub-
section (b). The Commandant shall convey the Com-
mandant’s assessment to the employees of the ma-
rine safety workforce and shall identify any defi-
ciencies that should be remedied before the next 
progress assessment. 
‘‘(2) REPORT
TO
CONGRESS.—The Secretary 
shall report annually 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— 
‘‘(A) on the performance of the marine 
safety program in achieving the goals of the 
marine safety strategy and annual plan under 
subsection (a) for the year covered by the re-
port; 
‘‘(B) on the program’s mission perform-
ance in achieving numerical measurable goals 
established under subsection (b); and
210 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary of Homeland Security, acting through the 
Commandant of the Coast Guard, shall submit a 
survey of published data and reports, pertaining to 
the use, safety, and performance of blended fuels in 
marine applications, to the Committee on Transpor-
tation and Infrastructure of the House of Represent-
atives and the Committees on Commerce, Science, 
and Transportation of the Senate. 
(2) INCLUDED
INFORMATION.—To the extent 
possible, the survey required in subsection (a), shall 
include data and reports on— 
(A) the impact of blended fuel on the oper-
ation, durability, and performance of rec-
reational and commercial marine engines, ves-
sels, and marine engine and vessel components 
and associated equipment; 
(B) the safety impacts of blended fuels on 
consumers that own and operate recreational 
and commercial marine engines and marine en-
gine components and associated equipment; and 
(C) to the extent available, fires and explo-
sions on board vessels propelled by engines 
using blended fuels.