110TH CONGRESS 
1ST SESSION H. R. 2722 
AN ACT 
To restructure the Coast Guard Integrated Deepwater 
Program, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Integrated Deepwater 
Program Reform Act’’. 
SEC. 2. IMPLEMENTATION OF COAST GUARD INTEGRATED 
DEEPWATER ACQUISITION PROGRAM. 
(a) USE OF PRIVATE SECTOR ENTITY AS A LEAD 
SYSTEMS INTEGRATOR.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the Secretary may not use 
a private sector entity as a lead systems integrator 
for procurements under, or in support of, the Deep-
water Program beginning on the earlier of October 
1, 2011, or the date on which the Secretary certifies 
in writing to the Committee on Transportation and 
Infrastructure of the House of Representatives and 
the Committee on Commerce, Science, and Trans-
portation of the Senate that the Coast Guard has 
available and can retain sufficient contracting per-
sonnel and expertise within the Coast Guard, 
through an arrangement with other Federal agen-
cies, or through contracts or other arrangements 
with private sector entities, to perform the functions 
and responsibilities of the lead system integrator in 
an efficient and cost-effective manner. 
(2) COMPLETION OF EXISTING DELIVERY OR-
DERS AND TASK ORDERS.—The Secretary may use
a private sector entity as a lead systems integrator 
to complete any delivery order or task order under 
the Deepwater Program that was issued to the lead 
systems integrator on or before the date of enact-
ment of this Act. 
(3) ASSISTANCE
OF
OTHER
FEDERAL
AGEN-
CIES.—In any case in which the Secretary is the sys-
tems integrator under the Deepwater Program, the 
Secretary may obtain any type of assistance the Sec-
retary considers appropriate, with any systems inte-
gration functions, from any Federal agency with ex-
perience in systems integration involving maritime 
vessels and aircraft. 
(4) ASSISTANCE
OF
PRIVATE
SECTOR
ENTI-
TIES.—In any case in which the Secretary is the sys-
tems integrator under the Deepwater Program, the 
Secretary may, subject to the availability of appro-
priations, obtain by grant, contract, or cooperative 
agreement any type of assistance the Secretary con-
siders appropriate, with any systems integration 
functions, from any private sector entity with experi-
ence in systems integration involving maritime ves-
sels and aircraft. 
(b) COMPETITION.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the Secretary shall use full 
and open competition for each class of asset acquisi-
tions under the Deepwater Program for which an 
outside contractor is used, if the asset is procured 
directly by the Coast Guard or by the Integrated 
Coast Guard System acting under a contract with 
the Coast Guard. 
(2) EXCEPTION.—The Secretary may use a pro-
curement method that is less than full and open 
competition to procure an asset under the Deep-
water Program, if— 
(A) the Secretary determines that such 
method is in the best interests of the Federal 
Government; and 
(B) by not later than 30 days before the 
date of the award of a contract for the procure-
ment, the Secretary submits to the Committee 
on Transportation and Infrastructure of the 
House of Representatives and the Committee 
on Commerce, Science, and Transportation of 
the Senate a report explaining why such pro-
curement is in the best interests of the Federal 
Government.
(3) LIMITATION ON APPLICATION.—Paragraph 
(1) shall not apply to a contract, subcontract, or 
task order that was issued before the date of enact-
ment of this Act, if there is no change in the quan-
tity of assets or the specific type of assets procured. 
(c) REQUIRED CONTRACT TERMS.—The Secretary 
shall include in each contract, subcontract, and task order 
issued under the Deepwater Program after the date of the 
enactment of this Act the following provisions, as applica-
ble: 
(1) TECHNICAL REVIEWS.—A requirement that 
the Secretary shall conduct a technical review of all 
proposed designs, design changes, and engineering 
changes, and a requirement that the contractor must 
specifically address all engineering concerns identi-
fied in the technical reviews, before any funds may 
be obligated. 
(2) RESPONSIBILITY FOR TECHNICAL REQUIRE-
MENTS.—A requirement that the Secretary shall 
maintain the authority to establish, approve, and 
maintain technical requirements. 
(3) COST ESTIMATE OF MAJOR CHANGES.—A 
requirement that an independent cost estimate must 
be prepared and approved by the Secretary before 
the execution of any change order costing more than
5 percent of the unit cost approved in the Deepwater 
Program baseline in effect as of May 2007. 
(4) PERFORMANCE MEASUREMENT.—A require-
ment that any measurement of contractor and sub-
contractor performance must be based on the status 
of all work performed, including the extent to which 
the work performed met all cost, schedule, and mis-
sion performance requirements outlined in the Deep-
water Program contract. 
(5) EARLY
OPERATIONAL
ASSESSMENT.—For 
the acquisition of any cutter class for which an 
Early Operational Assessment has not been devel-
oped— 
(A) a requirement that the Secretary of 
the Department in which the Coast Guard is 
operating shall cause an Early Operational As-
sessment to be conducted by the Department of 
the Navy after the development of the prelimi-
nary design of the cutter and before the con-
duct of the critical design review of the cutter; 
and 
(B) a requirement that the Coast Guard 
shall develop a plan to address the findings pre-
sented in the Early Operational Assessment.
(6) 
TRANSIENT
ELECTROMAGNETIC
PULSE 
EMANATION.—For the acquisition or upgrade of air, 
surface, or shore assets for which compliance with 
transient electromagnetic pulse emanation (TEM-
PEST) is a requirement, a provision specifying that 
the standard for determining such compliance shall 
be the air, surface, or shore asset standard then 
used by the Department of the Navy. 
(7) OFFSHORE PATROL CUTTER UNDERWAY RE-
QUIREMENT.—For any contract issued to acquire an 
Offshore Patrol Cutter, provisions specifying the 
service life, fatigue life, days underway in general 
Atlantic and North Pacific Sea conditions, maximum 
range, and maximum speed the cutter shall be built 
to achieve. 
(8) INSPECTOR GENERAL ACCESS.—A require-
ment that the Department of Homeland Security’s 
Office of the Inspector General shall have access to 
all records maintained by all contractors working on 
the Deepwater Program, and shall have the right to 
privately interview any contractor personnel. 
(d) LIFE CYCLE COST ESTIMATE.— 
(1) IN GENERAL.—The Secretary shall develop 
an authoritative life cycle cost estimate for the 
Deepwater Program.
(2) CONTENTS.—The life cycle cost estimate 
shall include asset acquisition and logistics support 
decisions and planned operational tempo and loca-
tions as of the date of enactment of this Act. 
(3) SUBMITTAL.—The Secretary shall— 
(A) submit the life cycle cost estimate to 
the Committee on Transportation and Infra-
structure of the House of Representatives and 
the Committee on Commerce, Science, and 
Transportation of the Senate within 4 months 
after the date of enactment of this Act; and 
(B) submit updates of the life cycle cost 
estimate to such Committees annually. 
(e) CONTRACT OFFICERS.—The Secretary shall as-
sign a separate contract officer for each class of cutter 
and aircraft acquired or rehabilitated under the Deep-
water Program, including the National Security Cutter, 
the Offshore Patrol Cutter, the Fast Response Cutter A, 
the Fast Response Cutter B, maritime patrol aircraft, the 
aircraft HC–130J, the helicopter HH–65, the helicopter 
HH–60, and the vertical unmanned aerial vehicle. 
(f) TECHNOLOGY RISK REPORT.—The Secretary 
shall submit to the Committee on Transportation and In-
frastructure of the House of Representatives and the Com-
mittee on Commerce, Science, and Transportation of the
Senate a report identifying the technology risks and level 
of maturity for major technologies used on each class of 
asset acquisitions under the Deepwater Program, includ-
ing the Fast Response Cutter A (FRC–A), the Fast Re-
sponse Cutter B (FRC–B), the Offshore Patrol Cutter 
(OPC), and the Vertical Unmanned Aerial Vehicle 
(VUAV), not later than 90 days before the date of award 
of a contract for such an acquisition. 
(g) SUBMISSION
OF ASSESSMENT RESULTS
AND 
PLANS TO CONGRESS.—The Commandant of the Coast 
Guard 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) the results of each Early Operational As-
sessment conducted pursuant to subsection (c)(5)(A) 
and the plan approved by the Commandant pursuant 
to subsection (c)(5)(B) for addressing the findings 
of such assessment, within 30 days after the Com-
mandant approves the plan; and 
(2) a report describing how the recommenda-
tions of each Early Operational Assessment con-
ducted pursuant to subsection (c)(5)(A) on the first 
in class of a new cutter class have been addressed
in the design on which construction is to begin, with-
in 30 days before initiation of construction. 
SEC. 3. CHIEF ACQUISITION OFFICER. 
(a) IN GENERAL.—Chapter 3 of title 14, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 55. Chief Acquisition Officer 
‘‘(a) ESTABLISHMENT OF AGENCY CHIEF ACQUISI-
TION OFFICER.—The Commandant shall appoint or des-
ignate a career reserved employee as Chief Acquisition Of-
ficer for the Coast Guard, who shall— 
‘‘(1) have acquisition management as that offi-
cial’s primary duty; and 
‘‘(2) report directly to the Commandant to ad-
vise and assist the Commandant to ensure that the 
mission of the Coast Guard is achieved through the 
management of the Coast Guard’s acquisition activi-
ties. 
‘‘(b) AUTHORITY AND FUNCTIONS OF THE CHIEF 
ACQUISITION OFFICER.—The functions of the Chief Ac-
quisition Officer shall include— 
‘‘(1) monitoring the performance of acquisition 
activities and acquisition programs of the Coast 
Guard, evaluating the performance of those pro-
grams on the basis of applicable performance meas-
urements, and advising the Commandant regarding 
the appropriate business strategy to achieve the mis-
sion of the Coast Guard; 
‘‘(2) increasing the use of full and open com-
petition in the acquisition of property and services 
by the Coast Guard by establishing policies, proce-
dures, 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 (including per-
formance and delivery schedules) at the lowest cost 
or best value considering the nature of the property 
or service procured; 
‘‘(3) ensuring the use of detailed performance 
specifications in instances in which performance- 
based contracting is used; 
‘‘(4) making acquisition decisions consistent 
with all applicable laws and establishing clear lines 
of authority, accountability, and responsibility for 
acquisition decisionmaking within the Coast Guard; 
‘‘(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 professional work-
force; and 
‘‘(7) as part of the strategic planning and per-
formance evaluation process required under section 
306 of title 5 and sections 1105(a)(28), 1115, 1116, 
and 9703 of title 31— 
‘‘(A) assessing the requirements estab-
lished for Coast Guard personnel regarding 
knowledge and skill in acquisition resources 
management and the adequacy of such require-
ments for facilitating the achievement of the 
performance goals established for acquisition 
management; 
‘‘(B) in order to rectify any deficiency in 
meeting such requirements, developing strate-
gies and specific plans for hiring, training, and 
professional development; and 
‘‘(C) reporting to the Commandant on the 
progress made in improving acquisition man-
agement capability.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following: 
‘‘55. Chief Acquisition Officer.’’.
(c) 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 of 
the Coast Guard shall establish special rate supple-
ments that provide higher pay levels for employees 
necessary to carry out the amendment made by this 
section. 
(2) SUBJECT
TO
APPROPRIATIONS.—The re-
quirement under paragraph (1) is subject to the 
availability of appropriations. 
SEC. 4. TESTING AND CERTIFICATION. 
(a) IN GENERAL.—The Secretary shall— 
(1) cause each cutter, other than a National Se-
curity Cutter, acquired by the Coast Guard and de-
livered after the date of enactment of this Act to be 
classed by the American Bureau of Shipping, before 
acceptance of delivery; 
(2) cause the design and construction of each 
National Security Cutter, other than National Secu-
rity Cutter 1 and 2, to be certified by an inde-
pendent third party with expertise in vessel design 
and construction certification to be able to meet a 
185-underway-day requirement under general Atlan-
tic and North Pacific sea conditions for a period of 
at least 30 years; 
(3) cause all electronics on all aircraft, surface, 
and shore assets that require TEMPEST certifi-
cation and that are delivered after the date of enact-
ment of this Act to be tested and certified in accord-
ance with TEMPEST standards and communica-
tions security (COMSEC) standards by an inde-
pendent third party that is authorized by the Fed-
eral Government to perform such testing and certifi-
cation; and 
(4) cause all aircraft and aircraft engines ac-
quired by the Coast Guard and delivered after the 
date of enactment of this Act to be certified for air-
worthiness by an independent third party with ex-
pertise in aircraft and aircraft engine certification, 
before acceptance of delivery. 
(b) FIRST IN CLASS OF A MAJOR ASSET ACQUISI-
TION.—The Secretary shall cause the first in class of a 
major asset acquisition of a cutter or an aircraft to be 
subjected to an assessment of operational capability con-
ducted by the Secretary of the Navy. 
(c) FINAL ARBITER.—The Secretary shall be the 
final arbiter of all technical disputes regarding designs
and acquisitions of vessels and aircraft for the Coast 
Guard. 
SEC. 5. NATIONAL SECURITY CUTTERS. 
(a) NATIONAL SECURITY CUTTERS 1 AND 2.— 
(1) REPORT
ON
OPTIONS
UNDER
CONSIDER-
ATION.—The Secretary shall submit to the Com-
mittee on Transportation and Infrastructure of the 
House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Sen-
ate— 
(A) within 120 days after the date of en-
actment of this Act, a report describing in de-
tail the cost increases that have been experi-
enced on National Security Cutters 1 and 2 
since the date of the issuance of the task orders 
for construction of those cutters and explaining 
the causes of these cost increases; and 
(B) within 180 days after the date of en-
actment of this Act, a report on the options 
that the Coast Guard is considering to 
strengthen the hulls of National Security Cutter 
1 and National Security Cutter 2, including— 
(i) the costs of each of the options 
under consideration;
(ii) a schedule for when the hull 
strengthening repairs are anticipated to be 
performed; and 
(iii) the impact that the weight likely 
to be added to each the cutter by each op-
tion will have on the cutter’s ability to 
meet both the original performance re-
quirements included in the Deepwater Pro-
gram contract and the performance re-
quirements created by contract Amend-
ment Modification 00042 dated February 
7, 2007. 
(2) DESIGN ASSESSMENT.—Not later than 30 
days before the Coast Guard signs any contract, de-
livery order, or task order to strengthen the hull of 
either of National Security Cutter 1 or 2 to resolve 
the structural design and performance issues identi-
fied in the Department of Homeland Security In-
spector General’s report OIG–07–23 dated January 
2007, the Secretary 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 all results 
of an assessment of the proposed hull strengthening 
design conducted by the Naval Surface Warfare
Center, Carderock Division, including a description 
in detail of the extent to which the hull strength-
ening measures to be implemented on those cutters 
will enable the cutters to meet a 185-underway-day 
requirement under general Atlantic and North Pa-
cific sea conditions for a period of at least 30 years. 
(b) NATIONAL SECURITY CUTTERS 3 THROUGH 8.— 
Not later than 30 days before the Coast Guard signs any 
contract, delivery order, or task order authorizing con-
struction of National Security Cutters 3 through 8, the 
Secretary 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 all results of an assessment of the 
proposed designs to resolve the structural design, safety, 
and performance issues identified by the Department of 
Homeland Security Office of Inspector General report 
OIG–07–23 for the hulls of those cutters conducted by the 
Naval Surface Warfare Center, Carderock Division, in-
cluding a description in detail of the extent to which such 
designs will enable the cutters to meet a 185-underway- 
day requirement under general Atlantic and North Pacific 
sea conditions.
SEC. 6. MISCELLANEOUS REPORTS. 
(a) IN GENERAL.—The Secretary shall submit the 
following reports to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of 
the Senate: 
(1) Within 4 months after the date of enact-
ment of this Act, a justification for why 8 National 
Security Cutters are required to meet the oper-
ational needs of the Coast Guard, including— 
(A) how many days per year each National 
Security Cutter will be underway at sea; 
(B) where each National Security Cutter 
will be home ported; 
(C) the amount of funding that will be re-
quired to establish home port operations for 
each National Security Cutter; 
(D) the extent to which 8 National Secu-
rity Cutters deployed without vertical un-
manned aerial vehicles (VUAV) will meet or ex-
ceed the mission capability (including surveil-
lance capacity) of the 12 Hamilton-class high 
endurance cutters that the National Security 
Cutters will replace;