H. R. 3619—30 
Homeland Security of the House of Representatives 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 current acquisition workforce to meet that anticipated 
workload. 
‘‘(2) CONTENTS.—The report shall— 
‘‘(A) specify the number of officers, members, and 
employees of the Coast Guard currently and planned to 
be assigned to each position designated under subsection 
(c); and 
‘‘(B) identify positions that are understaffed to meet 
the anticipated acquisition workload, and actions that will 
be taken to correct such understaffing. 
‘‘(f) APPOINTMENTS
TO
ACQUISITION
POSITIONS.—The Com-
mandant 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. 
‘‘(g) CAREER PATHS.— 
‘‘(1) IDENTIFICATION
OF
CAREER
PATHS.—To establish 
acquisition management as a core competency of the Coast 
Guard, the Commandant shall— 
‘‘(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 edu-
cation, training, experience, and assignments necessary for 
career 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. 
‘‘§ 563. Recognition of Coast Guard personnel for excellence 
in acquisition 
‘‘(a) IN GENERAL.—Not later than 180 days after the date of 
enactment of the Coast Guard Authorization Act for Fiscal Years 
2010 and 2011, the Commandant shall commence implementation 
of a program to recognize excellent performance by individuals 
and teams comprised of officers, members, and employees of the 
Coast Guard that contributed to the long-term success of a Coast 
Guard acquisition project or program. 
‘‘(b) ELEMENTS.—The program shall include— 
‘‘(1) specific award categories, criteria, and eligibility and 
manners of recognition; 
‘‘(2) procedures for the nomination by personnel of the 
Coast Guard of individuals and teams comprised of officers, 
members, and employees of the Coast Guard for recognition 
under the program; and 
‘‘(3) procedures for the evaluation of nominations for rec-
ognition under the program by one or more panels of individuals 
from the Government, academia, and the private sector who 
have such expertise and are appointed in such manner as 
the Commandant shall establish for the purposes of this pro-
gram.
H. R. 3619—31 
‘‘(c) AWARD OF CASH BONUSES.—As part of the program required 
by subsection (a), the Commandant, subject to the availability of 
appropriations, may award to any civilian employee recognized 
pursuant to the program a cash bonus to the extent that the 
performance of such individual so recognized warrants the award 
of such bonus. 
‘‘§ 564. Prohibition on use of lead systems integrators 
‘‘(a) IN GENERAL.— 
‘‘(1) USE OF LEAD SYSTEMS INTEGRATOR.—Except as pro-
vided in subsection (b), the Commandant may not use a private 
sector entity as a lead systems integrator for an acquisition 
contract awarded or delivery order or task order issued after 
the date of enactment of the Coast Guard Authorization Act 
for Fiscal Years 2010 and 2011. 
‘‘(2) FULL AND OPEN COMPETITION.—The Commandant and 
any lead systems integrator engaged by the Coast Guard, 
pursuant to the exceptions described in subsection (b), shall 
use full and open competition for any acquisition contract 
awarded after the date of enactment of that Act, unless other-
wise excepted in accordance with Federal acquisition laws and 
regulations promulgated under those laws, including the Fed-
eral Acquisition Regulation. 
‘‘(3) NO EFFECT ON SMALL BUSINESS ACT.—Nothing in this 
subsection shall be construed to supersede 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 SYSTEM MODERNIZA-
TION PROGRAM; C4ISR; NATIONAL SECURITY CUTTERS 2 AND 3.— 
Notwithstanding subsection (a), the Commandant may use a 
private sector entity as a lead systems integrator for the Coast 
Guard to complete the National Distress and Response System 
Modernization Program (otherwise known as the ‘Rescue 21’ 
program), the C4ISR projects directly related to the Integrated 
Deepwater program, and National Security Cutters 2 and 3, 
if the Secretary of the department in which the Coast Guard 
is operating certifies that— 
‘‘(A) the acquisition is in accordance with Federal law 
and the Federal Acquisition Regulation; and 
‘‘(B) the acquisition and the use of a private sector 
lead systems integrator for the acquisition is in the best 
interest of the Federal Government. 
‘‘(2) REPORT ON DECISIONMAKING PROCESS.—If the Com-
mandant uses a private sector lead systems integrator for an 
acquisition, the Commandant shall notify in writing the appro-
priate congressional committees of the Commandant’s deter-
mination and shall provide to such committees 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 expected cost if the 
acquisition were awarded directly to the manufacturer or ship-
yard. For purposes of that comparison, the cost of award directly 
to a manufacturer or shipyard shall include the costs of Govern-
ment contract management and oversight.
H. R. 3619—32 
‘‘(c) LIMITATION ON LEAD SYSTEMS INTEGRATORS.—Neither an 
entity performing lead systems integrator functions for a Coast 
Guard acquisition nor a Tier 1 subcontractor for any acquisition 
may have a financial interest 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 subcontractor 
through a process over which the lead systems integrator and 
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 promulgated under those laws, including 
the Federal Acquisition Regulation. 
‘‘(d) 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 delivery 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 committees that the Coast 
Guard has available and can retain sufficient acquisition 
workforce personnel and expertise within the Coast Guard, 
through an arrangement 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. 
‘‘§ 565. Required contract terms 
‘‘(a) IN GENERAL.—The Commandant shall ensure that a con-
tract 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 the Coast Guard Authorization 
Act for Fiscal Years 2010 and 2011— 
‘‘(1) provides that all certifications for an end-state capa-
bility or asset under such contract, delivery order, or task 
order, respectively, will be conducted by the Commandant or 
an independent third party, and that self-certification by a 
contractor or subcontractor is not allowed; 
‘‘(2) provides that the Commandant shall maintain the 
authority to establish, approve, and maintain technical require-
ments; 
‘‘(3) requires that any measurement of contractor and sub-
contractor performance be based on the status of all work 
performed, including the extent to which the work performed 
met all performance, cost, and schedule requirements; 
‘‘(4) specifies that, for the acquisition or upgrade of air, 
surface, or shore capabilities and assets for which compliance 
with TEMPEST certification is a requirement, the standard 
for determining such compliance will be the air, surface, or
H. R. 3619—33 
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 Offshore 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 PROVISIONS.— 
‘‘(1) IN GENERAL.—The Commandant shall ensure that any 
contract awarded or delivery order or task order issued by 
the Coast Guard after the date of enactment of the Coast 
Guard Authorization Act of 2010 does not include any provision 
allowing for equitable adjustment that is not consistent with 
the Federal Acquisition Regulations. 
‘‘(2) EXTENSION OF PROGRAM.—A contract, contract modi-
fication, or award term extending a contract with a lead systems 
integrator— 
‘‘(A) may not include any minimum requirements for 
the purchase of a given or determinable number of specific 
capabilities or assets; and 
‘‘(B) 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. 
‘‘(c) INTEGRATED PRODUCT TEAMS.—Integrated product teams, 
and all teams that oversee integrated product teams, shall be 
chaired by officers, members, or employees of the Coast Guard. 
‘‘(d) TECHNICAL AUTHORITY.—The Commandant shall maintain 
or designate the technical authority to establish, approve, and main-
tain 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 56 of this title. 
‘‘§ 566. Department of Defense consultation 
‘‘(a) IN GENERAL.—The Commandant shall make arrangements 
as appropriate with the Secretary of Defense for support in con-
tracting 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 assets acquired for 
the Coast Guard. 
‘‘(b) INTERSERVICE TECHNICAL ASSISTANCE.—The Commandant 
shall seek to enter into a memorandum of understanding or a 
memorandum of agreement with the Secretary of the Navy to 
obtain the assistance of the Office of the Assistant Secretary of 
the Navy for Research, Development, and Acquisition, including 
the Navy Systems Command, with the oversight of Coast Guard 
major acquisition programs. The memorandum of understanding 
or memorandum of agreement shall, at a minimum, provide for— 
‘‘(1) the exchange of technical assistance and support that 
the Assistant Commandants for Acquisition, Human Resources, 
Engineering, and Information technology may identify; 
‘‘(2) the use, as appropriate, of Navy technical expertise; 
and