127 
(2) A requirement that the Coast Guard main-
tain technical warrant holder authority, or the equiv-
alent, for major assets. 
(3) A requirement that no procurement subject 
to subsection (b) for lead asset production or the im-
plementation of a major design change shall be en-
tered into unless an independent third party with no 
financial interest in the development, construction, 
or modification of any component of the asset, se-
lected by the Commandant, determines that such ac-
tion is advisable. 
(4) A requirement for independent life-cycle 
cost estimates of lead assets and major design and 
engineering changes. 
(5) A requirement for the measurement of con-
tractor and subcontractor performance based on the 
status of all work performed. For contracts under 
the Integrated Deepwater Systems program, such 
requirement shall include a provision that links 
award fees to successful acquisition outcomes (which 
shall be defined in terms of cost, schedule, and per-
formance). 
(6) A requirement that the Commandant of the 
Coast Guard assign an appropriate officer or em-
ployee of the Coast Guard to act as chair of each in-
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tegrated product team and higher-level team as-
signed to the oversight of each integrated product 
team. 
(7) A requirement that the Commandant of the 
Coast Guard may not award or issue any contract, 
task or delivery order, letter contract modification 
thereof, or other similar contract, for the acquisition 
or modification of an asset under a procurement 
subject to subsection (b) unless the Coast Guard and 
the contractor concerned have formally agreed to all 
terms and conditions or the head of contracting ac-
tivity for the Coast Guard determines that a compel-
ling need exists for the award or issue of such in-
strument. 
(b) CONTRACTS, SUBCONTRACTS, TASK AND DELIV-
ERY ORDERS COVERED.—Subsection (a) applies to— 
(1) any major procurement contract, first-tier 
subcontract, delivery or task order entered into by 
the Coast Guard; 
(2) any first-tier subcontract entered into under 
such a contract; and 
(3) any task or delivery order issued pursuant 
to such a contract or subcontract. 
(c) EXPENDITURE OF DEEPWATER FUNDS.—Of the 
funds available for the Integrated Deepwater Systems pro-
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129 
gram, $650,000,000 may not be obligated until the Com-
mittees on Appropriations of the Senate and the House 
of Representatives receive an expenditure plan directly 
from the Coast Guard that— 
(1) defines activities, milestones, yearly costs, 
and life-cycle costs for each procurement of a major 
asset, including an independent cost estimate for 
each; 
(2) identifies life-cycle staffing and training 
needs of Coast Guard project managers and of pro-
curement and contract staff; 
(3) identifies competition to be conducted in 
each procurement; 
(4) describes procurement plans that do not 
rely on a single industry entity or contract; 
(5) contains very limited indefinite delivery/in-
definite quantity contracts and explains the need for 
any indefinite delivery/indefinite quantity contracts; 
(6) complies with all applicable acquisition 
rules, requirements, and guidelines, and incorporates 
the best systems acquisition management practices 
of the Federal Government; 
(7) complies with the capital planning and in-
vestment control requirements established by the Of-
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fice of Management and Budget, including circular 
A–11, part 7; 
(8) includes a certification by the head of con-
tracting activity for the Coast Guard and the Chief 
Procurement Officer of the Department of Home-
land Security that the Coast Guard has established 
sufficient controls and procedures and has sufficient 
staffing to comply with all contracting requirements, 
and that any conflicts of interest have been suffi-
ciently addressed; 
(9) includes a description of the process used to 
act upon deviations from the contractually specified 
performance requirements and clearly explains the 
actions taken on such deviations; 
(10) includes a certification that the Assistant 
Commandant of the Coast Guard for Engineering 
and Logistics is designated as the technical author-
ity for all engineering, design, and logistics decisions 
pertaining to the Integrated Deepwater Systems pro-
gram; and 
(11) identifies progress in complying with the 
requirements of subsection (a). 
(d) REPORTS.—(1) Not later than 30 days after the 
date of enactment of this Act, the Commandant of the 
Coast Guard shall submit to the Committees on Appro-
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