H. R. 3619—26 
‘‘(3) In this subsection each of the terms ‘Level 1 acquisition’ 
and ‘Level 2 acquisition’ has the meaning that term has in 
chapter 15 of this title. 
‘‘(c) FUNCTIONS OF THE CHIEF ACQUISITION OFFICER.—The func-
tions of the Chief Acquisition Officer include— 
‘‘(1) monitoring the performance of acquisition projects and 
programs on the basis of applicable performance measurements 
and advising the Commandant, through the chain of command, 
regarding the appropriate business strategy to achieve the mis-
sions of the Coast Guard; 
‘‘(2) maximizing the use of full and open competition at 
the prime contract and subcontract levels in the acquisition 
of property, capabilities, assets, and services by the Coast 
Guard by establishing policies, 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, including performance 
and delivery schedules, at the lowest cost or best value consid-
ering the nature of the property, capability, asset, or service 
procured; 
‘‘(3) making acquisition decisions in concurrence with the 
technical authority, or technical authorities, of the Coast Guard, 
as designated by the Commandant, consistent 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 policy for the 
Coast Guard, including implementation of the unique acquisi-
tion 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 workforce; 
‘‘(7) assessing the requirements established for Coast Guard 
personnel regarding knowledge and skill in acquisition 
resources and management and the adequacy of such require-
ments 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 improving acquisition 
management capability.’’. 
(b) CLERICAL AMENDMENT.—The table of contents for chapter 
3 of title 14, United States Code, is amended by adding at the 
end the following: 
‘‘56. Chief Acquisition Officer.’’. 
(c) SELECTION DEADLINE.—As soon as practicable after the date 
of enactment of this Act, but no later than October 1, 2011, the 
Commandant of the Coast Guard shall select a Chief Acquisition 
Officer under section 56 of title 14, United States Code, as amended 
by this section. 
(d) 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,
H. R. 3619—27 
the Commandant of the Coast Guard shall establish special 
rate supplements that provide higher pay levels for employees 
necessary to carry out the amendment made by this section. 
(2) SUBJECT TO APPROPRIATIONS.—The requirement under 
paragraph (1) is subject to the availability of appropriations. 
(e) ELEVATION
OF
DISPUTES
TO
THE
CHIEF
ACQUISITION 
OFFICER.—If, after 90 days following the elevation to the Chief 
Acquisition Officer of any design or other dispute regarding Level 
1 or Level 2 acquisition, the dispute remains unresolved, the Com-
mandant shall provide to the appropriate congressional committees 
a detailed description of the issue and the rationale underlying 
the decision taken by the Chief Acquisition Officer to resolve the 
issue. 
SEC. 402. ACQUISITIONS. 
(a) IN GENERAL.—Part I of title 14, United States Code, is 
amended by inserting after chapter 13 the following: 
‘‘CHAPTER 15—ACQUISITIONS 
‘‘SUBCHAPTER I—GENERAL PROVISIONS 
‘‘Sec. 
‘‘561. Acquisition directorate. 
‘‘562. Improvements in Coast Guard acquisition management. 
‘‘563. Recognition of Coast Guard personnel for excellence in acquisition. 
‘‘564. Prohibition on use of lead systems integrators. 
‘‘565. Required contract terms. 
‘‘566. Department of Defense consultation. 
‘‘567. Undefinitized contractual actions. 
‘‘568. Guidance on excessive pass-through charges. 
‘‘569. Report on former Coast Guard officials employed by contractors to the agency. 
‘‘SUBCHAPTER II—IMPROVED ACQUISITION PROCESS AND PROCEDURES 
‘‘Sec. 
‘‘571. Identification of major system acquisitions. 
‘‘572. Acquisition. 
‘‘573. Preliminary development and demonstration. 
‘‘574. Acquisition, production, deployment, and support. 
‘‘575. Acquisition program baseline breach. 
‘‘576. Acquisition approval authority. 
‘‘SUBCHAPTER III—DEFINITIONS 
‘‘581. Definitions. 
‘‘SUBCHAPTER I—GENERAL PROVISIONS 
‘‘§ 561. Acquisition directorate 
‘‘(a) ESTABLISHMENT.—The Commandant of the Coast Guard 
shall establish an acquisition directorate to provide guidance and 
oversight for the implementation and management of all Coast 
Guard acquisition processes, programs, and projects. 
‘‘(b) MISSION.—The mission of the acquisition directorate is— 
‘‘(1) to acquire and deliver assets and systems that increase 
operational readiness, enhance mission performance, and create 
a safe working environment; and 
‘‘(2) to assist in the development of a workforce that is 
trained and qualified to further the Coast Guard’s missions 
and deliver the best-value products and services to the Nation. 
‘‘§ 562. Improvements in Coast Guard acquisition manage-
ment 
‘‘(a) PROJECT OR PROGRAM MANAGERS.—
H. R. 3619—28 
‘‘(1) LEVEL 1 PROJECTS.—An individual may not be assigned 
as the project or program manager for a Level 1 acquisition 
unless the individual holds a Level III acquisition certification 
as a program manager. 
‘‘(2) LEVEL 2 PROJECTS.—An individual may not be assigned 
as the project or program manager for a Level 2 acquisition 
unless the individual holds a Level II acquisition certification 
as a program manager. 
‘‘(b) GUIDANCE ON TENURE AND ACCOUNTABILITY OF PROGRAM 
AND PROJECT MANAGERS.— 
‘‘(1) ISSUANCE OF GUIDANCE.—Not later than one year after 
the date of enactment of the Coast Guard Authorization Act 
for Fiscal Years 2010 and 2011, the Commandant shall issue 
guidance to address the qualifications, resources, responsibil-
ities, tenure, and accountability of program and project man-
agers for the management of acquisition projects and programs. 
The guidance shall address, at a minimum— 
‘‘(A) the qualifications required for project or program 
managers, including the number of years of acquisition 
experience and the professional training levels to be 
required of those appointed to project or program manage-
ment positions; 
‘‘(B) authorities available to project or program man-
agers, including, to the extent appropriate, the authority 
to object to the addition of new program requirements 
that would be inconsistent with the parameters established 
for an acquisition program; and 
‘‘(C) the extent to which a project or program manager 
who initiates a new acquisition project or program will 
continue in management of that project or program 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 section, the Commandant shall 
develop a comprehensive strategy for enhancing the role 
of Coast Guard project or 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 individuals who are or may become 
project or program managers, including the rotational 
assignments that will be provided to project or program 
managers; 
‘‘(ii) the provision of enhanced training and edu-
cational opportunities for individuals who are or may 
become project or program managers; 
‘‘(iii) the provision of mentoring support to current 
and future project or program managers by experienced 
senior executives and program managers within the 
Coast 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 project and 
program management throughout the Coast Guard;
H. R. 3619—29 
‘‘(v) the templates and tools that will be used to 
support improved data gathering and analysis for 
project and program management and oversight pur-
poses, including the metrics that will be utilized to 
assess the effectiveness of Coast Guard project or pro-
gram managers in managing systems acquisition 
efforts; and 
‘‘(vi) the methods by which the accountability of 
project or program managers for the results of acquisi-
tion projects and programs will be increased. 
‘‘(c) ACQUISITION WORKFORCE.— 
‘‘(1) IN GENERAL.—The Commandant shall designate a suffi-
cient number of positions to be in the Coast Guard’s acquisition 
workforce to perform acquisition-related functions at Coast 
Guard headquarters and field activities. 
‘‘(2) REQUIRED POSITIONS.—In designating positions under 
subsection (a), the Commandant shall include, at a minimum, 
positions encompassing the following competencies and func-
tions: 
‘‘(A) Program management. 
‘‘(B) 
Systems 
planning, 
research, 
development, 
engineering, and testing. 
‘‘(C) Procurement, including contracting. 
‘‘(D) Industrial and contract property management. 
‘‘(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 career develop-
ment. 
‘‘(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 paragraph (1) those acquisition- 
related positions located at Coast Guard headquarters units. 
‘‘(4) APPROPRIATE EXPERTISE REQUIRED.—The Commandant 
shall ensure that each individual assigned to a position in 
the acquisition workforce has the appropriate expertise to carry 
out the responsibilities of that position. 
‘‘(d) MANAGEMENT INFORMATION SYSTEM.— 
‘‘(1) IN
GENERAL.—The Commandant shall establish a 
management information system capability to improve acquisi-
tion workforce management and reporting. 
‘‘(2) INFORMATION
MAINTAINED.—Information maintained 
with such capability shall include the following standardized 
information on individuals assigned to positions in the 
workforce: 
‘‘(A) Qualifications, assignment history, and tenure of 
those individuals assigned to positions in the acquisition 
workforce or holding acquisition-related certifications. 
‘‘(B) Promotion rates for officers and members of the 
Coast Guard in the acquisition workforce. 
‘‘(e) REPORT ON ADEQUACY OF ACQUISITION WORKFORCE.— 
‘‘(1) IN GENERAL.—The Commandant shall report to the 
appropriate congressional committees and the Committee on