SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Coast Guard Acquisition Reform Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
TITLE I—RESTRICTIONS ON THE USE OF LEAD SYSTEMS 
INTEGRATORS 
Sec. 101. Procurement structure. 
TITLE II—COAST GUARD ACQUISITION POLICY 
Sec. 201. Operational requirements. 
Sec. 202. Required contract terms. 
Sec. 203. Life-cycle cost estimates. 
Sec. 204. Test and evaluation. 
Sec. 205. Capability standards. 
Sec. 206. Acquisition program reports. 
Sec. 207. Undefinitized contractual actions. 
Sec. 208. Guidance on excessive pass-through charges. 
Sec. 209. Acquisition of major capabilities: Alternatives analysis. 
Sec. 210. Cost overruns and delays. 
Sec. 211. Report on former Coast Guard officials employed by contractors to 
the agency. 
Sec. 212. Department of Defense consultation. 
TITLE III—COAST GUARD PERSONNEL 
Sec. 301. Chief Acquisition Officer. 
Sec. 302. Improvements in Coast Guard acquisition management. 
Sec. 303. Recognition of Coast Guard personnel for excellence in acquisition. 
Sec. 304. Enhanced status quo officer promotion system. 
Sec. 305. Coast Guard acquisition workforce expedited hiring authority. 
SEC. 2. DEFINITIONS. 
In this Act, 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. 
TITLE I—RESTRICTIONS ON THE 
USE OF LEAD SYSTEMS INTE-
GRATORS 
SEC. 101. 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 DECISION-MAKING 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
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. 
TITLE II—COAST GUARD 
ACQUISITION POLICY 
SEC. 201. 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. 202. REQUIRED CONTRACT TERMS. 
(a) IN GENERAL.—The Commandant shall ensure 
that a contract awarded or a delivery order or task order 
issued for an acquisition of a capability or an asset with 
an expected service life of 10 years and with a total acqui-
sition cost that is equal to or exceeds $10,000,000 award-
ed or issued by the Coast Guard after the date of enact-
ment 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. 203. 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 years, and 
to ensure that these estimates are considered in decisions 
to develop or produce new or enhanced capabilities 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. 204. 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