TITLE I—INTEGRATED 
DEEPWATER PROGRAM 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Integrated Deepwater 
Program Reform Act of 2008’’. 
SEC. 102. PROCUREMENT STRUCTURE. 
(a) IN GENERAL.— 
(1) USE OF LEAD SYSTEMS INTEGRATOR.—Ex-
cept as provided in subsection (b), the Secretary 
may not use a private sector entity as a lead systems 
integrator for acquisitions under, or in support of, 
the Integrated Deepwater Program after the end of 
the 180-day period beginning on the date of enact-
ment of this Act. 
(2) FULL AND OPEN COMPETITION.—The Sec-
retary and the lead systems integrator for the Inte-
grated Deepwater Program shall utilize full and 
open competition for any acquisition for which an 
outside contractor is used under, or in support of, 
the Integrated Deepwater Program after the date of 
enactment of this Act, unless otherwise excepted in 
accordance with the Competition in Contracting Act 
of 1984 and 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) COMPLETION
OF
ACQUISITIONS
BY
LEAD 
SYSTEMS INTEGRATOR.—Notwithstanding subsection 
(a), the Secretary may use a private sector entity as 
a lead systems integrator for the Coast Guard— 
(A) to complete any delivery order or task 
order that was issued to the lead systems inte-
grator on or before the date that is 180 days 
after the date of enactment of this Act without 
any change in the quantity of assets or the spe-
cific type of assets covered by the order; 
(B) for acquisitions after the date that is 
180 days after the date of enactment of this 
Act of, or in support of, the HC–130J aircraft, 
the HH–65 aircraft, and the C4ISR system if 
the requirements of subsection (c) are met with 
respect to such acquisitions; 
(C) for acquisitions after the date that is 
180 days after the date of enactment of this 
Act of, or in support of, National Security Cut-
ters or Maritime Patrol Aircraft under contract 
or order for construction as of the date that is
180 days after the date of enactment of this 
Act, if the requirements of subsection (c) are 
met with respect to such acquisitions; and 
(D) for the acquisition, or in support, of 
additional National Security Cutters or Mari-
time Patrol Aircraft if the Secretary determines 
that— 
(i) the acquisition is in accordance 
with the Competition in Contracting Act of 
1984 and 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 is in the best in-
terest of the Federal Government; and 
(iii) the requirements of subsection (c) 
are met with respect to such acquisition. 
(2) AWARDS TO TIER 1 SUBCONTRACTORS.— 
The Secretary may award to any Tier 1 subcon-
tractor or subcontractor below the Tier 1 level any 
acquisition that the Secretary could award to a lead 
systems integrator under paragraph (1). 
(3) REPORT ON DECISION-MAKING PROCESS.— 
If the Secretary determines under paragraph (1)(B), 
(1)(C), or (1)(D) that the Coast Guard will use a
private sector lead systems integrator for an acquisi-
tion, the Secretary shall notify in writing the appro-
priate congressional committees of the Secretary’s 
determination and shall provide a detailed rationale 
for the determination, at least 30 days before the 
award of a contract, delivery order, or task order 
using a private sector lead systems integrator, in-
cluding a comparison of the cost of the acquisition 
through the private sector lead systems integrator 
with the expected cost if the acquisition were award-
ed directly to the manufacturer or shipyard. 
(c) LIMITATION ON LEAD SYSTEMS INTEGRATORS.— 
Neither an entity performing lead systems integrator func-
tions for an acquisition under, or in support of, the Inte-
grated Deepwater Program, nor a Tier 1 subcontractor, 
for any acquisition described in subsection (b)(1)(B), 
(b)(1)(C), or (b)(1)(D) may have a financial interest in 
a subcontractor below the tier 1 subcontractor level un-
less— 
(1) the subcontractor was selected by the Sec-
retary 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 Secretary has determined that the pro-
curement was awarded in a manner consistent with 
the Competition in Contracting Act of 1984 and 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 subsystems or other components of a vessel or air-
craft described in subsection (b)(1)(B), (C), or (D). 
(e) TERMINATION DATE
FOR EXCEPTIONS.—Not-
withstanding subsection (b), the Secretary may not use a 
private sector entity as a lead systems integrator for ac-
quisitions under, or in support of, the Integrated Deep-
water Program after the earlier of— 
(1) September 30, 2011; or 
(2) the date on which the Secretary certifies in 
writing to the appropriate congressional committees 
that the Coast Guard has available and can retain 
sufficient contracting 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 
system integrator in an efficient and cost-effective 
manner. 
SEC. 103. REQUIRED CONTRACT TERMS. 
(a) IN GENERAL.—The Secretary shall ensure that 
any contract, delivery order, or task order for an acquisi-
tion under, or in support of, the Integrated Deepwater 
Program executed by the Secretary after the date of enact-
ment of this Act— 
(1) provides that all certifications for Inte-
grated Deepwater Program procurements will be 
conducted by the Secretary or an independent third 
party, and that self-certification by the contractor or 
subcontractor is not allowed; 
(2) provides that the Commandant shall con-
duct a technical review of all proposed designs, de-
sign changes, and engineering changes and requires 
that the contractor address all design and engineer-
ing concerns identified in the technical reviews; 
(3) requires that the Commandant shall main-
tain the authority to establish, approve, and main-
tain technical requirements;
(4) 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 cost, 
schedule, and mission performance requirements; 
(5) specifies that, for the acquisition or upgrade 
of air, surface, or shore assets for which compliance 
with TEMPEST certification is a requirement, the 
standard for determining such compliance will be the 
air, surface, or shore asset standard then used by 
the Department of the Navy for that type of asset; 
and 
(6) for any contract issued 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 Sec-
retary shall ensure that any contract, delivery order, or 
task order for acquisition under, or in support of, the Inte-
grated Deepwater Program executed by the Secretary 
after the date of enactment of this Act does not include— 
(1) provisions that commit the Secretary with-
out express written approval by the Secretary; or
(2) any provision allowing for equitable adjust-
ment that differs from the Federal Acquisition Reg-
ulation. 
(c) EXTENSION OF PROGRAM.—Any contract, con-
tract modification, or award term extending the existing 
Integrated Deepwater Program contract term, as signed 
in May 2006 and modified in June 2007— 
(1) shall not include any minimum require-
ments for the purchase of a given or determinable 
number of specific assets; and 
(2) shall be reviewed by the Under Secretary of 
Defense for Acquisition, Technology, and Logistics 
through the Defense Acquisition University and the 
results of that review shall be submitted to the ap-
propriate congressional committees at least 60 days 
prior to the award of the contract, contract modi-
fication, or award term. 
SEC. 104. TESTING AND CERTIFICATION. 
(a) EARLY OPERATIONAL ASSESSMENT.— 
(1) For any major asset type acquired for the 
Coast Guard after the date of enactment of this Act 
other than the National Security Cutter and the 
Maritime Patrol Aircraft, the Secretary shall cause 
an early operational assessment to be completed on 
the design for that asset type.
(2) The early operational assessment shall be 
conducted by an independent third party with rel-
evant expertise in conducting early operational as-
sessments on the asset type for which the assess-
ment is being performed or by the Coast Guard act-
ing in collaboration with an independent third party 
with relevant expertise in conducting early oper-
ational assessments on the asset type for which the 
assessment is being performed. 
(3) The result of this assessment shall be sub-
mitted to the appropriate congressional committees 
at least 90 days prior to the initiation of any con-
struction activity utilizing the proposed design. 
(4) The Secretary shall also submit a report de-
scribing the steps taken to mitigate the risks identi-
fied by the early operational assessment conducted 
under this section in the design on which construc-
tion is to begin at least 30 days prior to the initi-
ation of any construction utilizing the proposed de-
sign. 
(b) ASSESSMENT OF OPERATIONAL CAPABILITY.— 
(1) The Secretary shall cause the first in class 
of a major asset acquisition of a cutter or an air-
craft by the Coast Guard to be subjected to an as-
sessment of operational capability conducted by an
independent third party with relevant expertise in 
the asset type or by the Coast Guard in collabora-
tion with an independent third party with relevant 
expertise in the asset type. 
(2) The result of the assessment conducted 
under this subsection shall be submitted to the ap-
propriate congressional committees at least 45 days 
prior to acceptance of the asset. 
(c) CUTTER CLASSIFICATION.—The Secretary 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 acceptance of delivery. 
(d) TEMPEST TESTING.—The Secretary shall cause 
all electronics on all aircraft, surface, and shore assets 
that require TEMPEST certification and that are deliv-
ered after the date of enactment of this Act to be tested 
in accordance with TEMPEST standards and communica-
tion security (COMSEC) standards by an independent 
third party that is authorized by the Federal Government 
to perform such testing and certify that the asset meets 
all applicable TEMPEST requirements. 
(e) NATIONAL SECURITY CUTTER.—The Secretary 
shall cause the design and construction of each National 
Security Cutter, other than National Security Cutter 1
and 2, to be certified by an independent third party with 
expertise in vessel design and construction certification. 
(f) AIRCRAFT AIRWORTHINESS.—The Secretary shall 
cause all aircraft and aircraft engines acquired by the 
Coast Guard and delivered after the date of enactment 
of this Act to be certified for airworthiness by an inde-
pendent third party with expertise in aircraft and aircraft 
engine certification, before acceptance of delivery. 
(g) CERTIFICATIONS.— 
(1) After the date of enactment of this Act, a 
contract, delivery order, or task order exceeding 
$10,000,000 for an acquisition under, or in support 
of, the Coast Guard’s Integrated Deepwater Pro-
gram may not be executed by the Coast Guard until 
the Secretary certifies that— 
(A) appropriate market research has been 
conducted prior to technology development to 
reduce duplication of existing technology and 
products; 
(B) the technology has been demonstrated 
to the maximum extent practicable in a relevant 
environment; 
(C) the technology demonstrates a high 
likelihood of accomplishing its intended mission;
(D) funding is available to execute the con-
tract, delivery order, or task order; and 
(E) the technology complies with all rel-
evant policies, regulations, and directives of the 
Coast Guard. 
(2) The Secretary shall transmit a copy of each 
certification required under subsection (g) to the ap-
propriate congressional committees within 30 days 
after the completion of the certification. 
(h) LIMITATION.—Nothing in this section shall pre-
vent the Secretary from executing contracts or issuing de-
livery orders or task orders for research and development 
or technology demonstrations under, or in support of, the 
Integrated Deepwater Program. 
SEC. 105. NATIONAL SECURITY CUTTER. 
Not later than 90 days before the Coast Guard signs 
any contract, delivery 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 iden-
tified in the Department of Homeland Security Inspector 
General’s report OIG–07–23 dated January 2007, the 
Secretary shall submit to the appropriate congressional 
committees all results of an assessment of the proposed 
hull strengthening design conducted by the Coast Guard,
in conjunction with the Naval Surface Warfare Center, 
Carderock Division, including— 
(1) a description in detail of the extent to which 
the hull strengthening measures to be implemented 
on those cutters will enable the cutters to meet con-
tract and performance requirements; 
(2) a cost benefit analysis of the proposed hull 
strengthening measures for National Security Cut-
ters 1 and 2; and 
(3) a description of any operational restrictions 
that would have to be applied to either National Se-
curity Cutters 1 or 2 if the proposed hull strength-
ening measures were not implemented on either cut-
ter. 
SEC. 106. IMPROVEMENTS IN COAST GUARD MANAGEMENT. 
(a) 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. 
(b) DEEPWATER
TECHNICAL
AUTHORITY.—The 
Commandant shall maintain or designate the technical au-
thority to establish, approve, and maintain technical re-
quirements for the Integrated Deepwater Program. Any 
such designation shall be given in writing and may not 
be delegated to the authority of the Chief Acquisition Offi-
cer established by section 55 of title 14, United States 
Code. 
(c) ENSURING ADEQUATE PERSONNEL.—The Sec-
retary shall ensure that sufficient contracting officers, 
contracting specialists, and technical and financial man-
agement specialists (including earned value experts) are 
available to execute each contract issued under the Inte-
grated Deepwater Program. 
(d) ACQUISITIONS WORKFORCE POLICY.—The Sec-
retary shall review all policies established for the Coast 
Guard’s acquisitions workforce to ensure that they are de-
signed to provide for the selection of the best qualified 
individual for a position, consistent with other applicable 
law, and promote the establishment and maintenance of 
a balanced workforce in which women and members of ra-
cial and ethnic minority groups are appropriately rep-
resented in Government service. 
(e) CAREER PATHS.—The Secretary shall ensure that 
appropriate career paths for civilian and military per-
sonnel who wish to pursue careers in acquisitions are iden-
tified in terms of the education, training, experience, and 
assignments necessary for career progression of civilians 
and members of the Coast Guard to the most senior acqui-
sitions positions. The Secretary shall make available pub-
lished information on such career paths.
(f) BALANCED WORKFORCE POLICY.—In the devel-
opment of acquisition workforce policies with respect to 
any civilian employees or applicants for employment, the 
Secretary shall, consistent with the merit system prin-
ciples set out in paragraphs (1) and (2) of section 2301(b) 
of title 5, United States Code, promote a balanced work-
force in which women and members of racial and ethnic 
minority groups are appropriately represented in Govern-
ment service. 
(g) GUIDANCE ON TENURE AND ACCOUNTABILITY OF 
PROGRAM MANAGERS.— 
(1) ISSUANCE OF GUIDANCE.—Not later than 
one year after the date of the enactment of this Act, 
the Secretary shall issue guidance for major systems 
acquisition programs to address the qualifications, 
resources, responsibilities, tenure, and accountability 
of program managers for the management of major 
systems acquisitions. The guidance issued pursuant 
to this subsection shall address, at a minimum— 
(A) the qualifications that shall be required 
of program managers, including the number of 
years of acquisitions experience and the profes-
sional training levels to be required of those ap-
pointed to program management positions;
(B) authorities available to the program 
manager, including, to the extent appropriate, 
the authority to object to the addition of new 
program requirements that would be incon-
sistent with the parameters established for an 
acquisitions program; and 
(C) the extent to which a program man-
ager who initiates a new program will continue 
in management of that program without inter-
ruption 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 Secretary 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 program 
managers, including the rotational assign-
ments that will be provided to program 
managers; 
(ii) the provision of enhanced training 
and educational opportunities for program 
managers; 
(iii) the provision of mentoring sup-
port to current and future program man-
agers by experienced senior executives and 
program 
managers 
within 
the 
Coast 
Guard, including through rotational as-
signments to the Department of Defense; 
(iv) the methods by which the Coast 
Guard will collect and disseminate best 
practices and lessons learned on systems 
acquisitions 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 acquisi-
tions 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. 
(3) REPORT BY COMPTROLLER GENERAL.—Not 
later than 2 years after the date of enactment of 
this Act, the Comptroller General shall submit to the 
appropriate congressional committees a report on 
the actions taken by the Secretary to implement the 
requirements of this subsection, including the strate-
gies that are required to be developed by this sub-
section. 
SEC. 107. 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.—There shall be in the Coast Guard a