datamatters24/research-document-archive huggingface dataset:
376 
AMDT. NO. 98 
tent of the violation and the nature and extent 
of the harm resulting from such violation.’’. 
(2) TIERS OF PENALTIES DESCRIBED.—Section 
1176(a) of such Act (42 U.S.C. 1320d-5(a)) is fur-
ther amended by adding at the end the following 
new paragraph: 
‘‘(3) TIERS
OF
PENALTIES
DESCRIBED.—For 
purposes of paragraph (1), with respect to a viola-
tion by a person of a provision of this part— 
‘‘(A) the amount described in this subpara-
graph is $100 for each such violation, except 
that the total amount imposed on the person 
for all such violations of an identical require-
ment or prohibition during a calendar year may 
not exceed $25,000; 
‘‘(B) the amount described in this subpara-
graph is $1,000 for each such violation, except 
that the total amount imposed on the person 
for all such violations of an identical require-
ment or prohibition during a calendar year may 
not exceed $100,000; 
‘‘(C) the amount described in this subpara-
graph is $10,000 for each such violation, except 
that the total amount imposed on the person 
for all such violations of an identical require-
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(12 U.S.C. 5221) is amended by redesignating subsections 
(e) through (h) as subsections (f) through (g), and insert-
ing after subsection (d) the following: 
‘‘(e) PROHIBITION ON EXECUTIVE COMPENSATION 
NOT BASED ON PERFORMANCE STANDARDS.— 
‘‘(1) PROHIBITION.—No financial institution 
that has received or receives a capital investment 
under this title, or with respect to the Federal Na-
tional Mortgage Association, the Federal Home 
Loan Montage Corporation, or a Federal home loan 
bank, under the amendments made by section 1117 
of the Housing and Economic Recovery Act of 2008, 
may, while that capital investment remains out-
standing, make a compensation payment to any ex-
ecutive or employee under any pre-existing com-
pensation arrangement, or enter into a new com-
pensation payment arrangement, if such compensa-
tion payment or compensation payment arrange-
ment— 
‘‘(A) provides for compensation that is un-
reasonable or excessive, as defined in standards 
established by the Secretary in accordance with 
paragraph (2); or 
‘‘(B) includes any bonus, retention pay-
ment, or other supplemental payment that is 
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not directly based on performance-based meas-
ures set forth in standards established by the 
Secretary in accordance with paragraph (2). 
‘‘(2) STANDARDS.—Not later than 30 days 
after the date of enactment of this subsection, the 
Secretary shall establish the following: 
‘‘(A) UNREASONABLE
AND
EXCESSIVE 
COMPENSATION
STANDARDS.—Standards that 
define ‘unreasonable or excessive’ for purposes 
of subparagraph (1)(A). 
‘‘(B) PERFORMANCE-BASED STANDARDS.— 
Standards for performance-based measures that 
a financial institution must apply when deter-
mining whether it may provide a bonus or re-
tention payment under paragraph (1)(B). Such 
performance measures shall include— 
‘‘(i) the stability of the financial insti-
tution and its ability to repay or begin re-
paying the United States for any capital 
investment received under this title; 
‘‘(ii) the performance of the individual 
executive or employee to whom the pay-
ment relates; 
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‘‘(iii) adherence by executives and em-
ployees to appropriate risk management 
requirements; and 
‘‘(iv) other standards which provide 
greater accountability to shareholders and 
taxpayers.’’. 
(b) REVISION TO RULE OF CONSTRUCTION.—Section 
111(b)(3)(D)(iii) of the Emergency Economic Stabiliza-
tion Act of 2008 (12 U.S.C. 5221(b)(3)(D)(iii)) is amend-
ed by inserting before the period the following: ‘‘, except 
that no entity subject to subsection (e) may pay a bonus 
to any of its employees or executives, without regard to 
when the arrangement to pay such a bonus was entered 
into.’’. 
Æ 
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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 ex-
pected cost if the acquisition were awarded directly 
to the manufacturer or shipyard. For purposes of 
that comparison, the cost of award directly to a 
manufacturer or shipyard shall include the costs of 
Government contract management and oversight. 
(c) LIMITATION ON LEAD SYSTEMS INTEGRATORS.— 
Neither an entity performing lead systems integrator func-
tions for a Coast Guard acquisition nor a Tier 1 subcon-
tractor for any acquisition described in subparagraph (B), 
(C), or (D) of subsection (b)(2) may have a financial inter-
est 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 subcon-
tractor through a process over which the lead sys-
fore the TEMP is approved by the Coast Guard 
Chief Acquisition Officer; or 
(B) award any production contract for a 
capability, asset, or sub-system for which a 
TEMP is required under this subsection before 
the TEMP is approved by the Coast Guard 
Chief Acquisition Officer. 
(b) TESTS AND EVALUATIONS.— 
(1) IN GENERAL.—The Commandant shall en-
sure that the Coast Guard conducts developmental 
tests and evaluations and operational tests and eval-
uations of a capability or asset and the sub-systems 
of the capability or asset for which a TEMP has 
been prepared under subsection (a). 
(2) USE
OF
THIRD
PARTIES.—The Com-
mandant shall ensure that the Coast Guard uses 
third parties with expertise in testing and evaluating 
the capabilities or assets and the sub-systems of the 
capabilities or assets being acquired to conduct de-
velopmental tests and evaluations and operational 
tests and evaluations whenever the Coast Guard 
lacks the capability to conduct the tests and evalua-
tions required by a TEMP. 
(3) COMMUNICATION OF SAFETY CONCERNS.— 
The Commandant shall require that safety concerns 
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formance requirements, including technical per-
formance requirements, supportability require-
ments, and interoperability requirements and 
related specifications; and 
(B) the evaluation of the results of such 
testing. 
(2) OPERATIONAL
TEST
AND
EVALUATION.— 
The term ‘‘operational test and evaluation’’ means— 
(A) the testing of a capability or asset and 
the sub-systems of the capability or asset, 
under conditions similar to those in which the 
capability or asset and subsystems will actually 
be deployed, for the purpose of determining the 
effectiveness and suitability of the capability or 
asset and sub-systems for use by typical Coast 
Guard users to conduct those missions for 
which the capability or asset and sub-systems 
are intended to be used; and 
(B) the evaluation of the results of such 
testing. 
(3) SAFETY CONCERN.—The term ‘‘safety con-
cern’’ means any hazard associated with a capability 
or asset or a sub-system of a capability or asset that 
is likely to cause serious bodily injury or death to a 
typical Coast Guard user in testing, maintaining, re-
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Union Calendar No. 28 
111TH CONGRESS 
1ST SESSION 
H. R. 1664 
[Report No. 111–64] 
A BILL 
To amend the executive compensation provisions of 
the Emergency Economic Stabilization Act of 
2008 to prohibit unreasonable and excessive com-
pensation and compensation not based on per-
formance standards. 
MARCH 30, 2009 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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(A) an examination of development costs 
and the levels of uncertainty associated with 
such estimated costs; 
(B) an examination of likely production 
and deployment costs and the levels of uncer-
tainty associated with such estimated costs; 
(C) an examination of likely operating and 
support costs and the levels of uncertainty asso-
ciated with such estimated costs; 
(D) if they are likely to be significant, an 
examination of likely disposal costs and the lev-
els of uncertainty associated with such esti-
mated costs; and 
(E) such additional measures the Com-
mandant determines to be necessary for appro-
priate evaluation of the capability or asset; and 
(7) the business case for each viable alternative. 
SEC. 210. COST OVERRUNS AND DELAYS. 
(a) IN GENERAL.—The Commandant shall submit a 
report to the appropriate congressional committees as 
soon as possible, but not later than 30 days, after the 
Chief Acquisition Officer of the Coast Guard becomes 
aware of the breach of an acquisition program baseline 
for any Level 1 or Level 2 acquisition program, by— 
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‘‘(B) such agency performance improve-
ment officers as determined appropriate by the 
Chair; and 
‘‘(C) such other permanent employees of 
an agency as determined appropriate by the 
Chair in consultation with the agency con-
cerned. 
‘‘(3) The Chair or the Chair’s designee shall 
convene and preside at the meetings of the Perform-
ance Improvement Council, determine its agenda, di-
rect its work, and establish and direct subgroups of 
the Performance Improvement Council, as appro-
priate to deal with particular subject matters. 
‘‘(4) To assist in implementing the require-
ments of sections 1105, 1115, 1116, 1117, 1120, 
and the first 9703 of this title and section 306 of 
title 5, the Performance Improvement Council 
shall— 
‘‘(A) develop and submit to the Director of 
the Office of Management and Budget, or when 
appropriate to the President through the Direc-
tor of the Office of Management and Budget, at 
times and in such formats as the Chair may 
specify, recommendations concerning—
identified during developmental or operational tests 
and evaluations or through independent or Govern-
ment-conducted design assessments of capabilities or 
assets and sub-systems of capabilities or assets to be 
acquired by the Coast Guard shall be communicated 
as soon as practicable, but not later than 30 days 
after the completion of the test or assessment event 
or activity that identified the safety concern, to the 
program manager for the capability or asset and the 
sub-systems concerned and to the Coast Guard Chief 
Acquisition Officer. 
(4) REPORTING OF SAFETY CONCERNS.—Any 
safety concerns that have been reported to the Chief 
Acquisition Officer for an acquisition program or 
project shall be reported by the Commandant to the 
appropriate congressional committees at least 90 
days before the award of any contract or issuance of 
any delivery order or task order for low, initial, or 
full-rate production of the capability or asset con-
cerned if they will remain uncorrected or unmiti-
gated at the time such a contract is awarded or de-
livery order or task order is issued. The report shall 
include a justification for the approval of that level 
of production of the capability or asset before the 
safety concern is corrected or mitigated. The report 
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that result from Federal statutes designed to 
limit greenhouse gas emissions. 
(D) SMALL BUSINESSES.—The use of such 
funds to assist small businesses with any in-
creases in energy costs that result from Federal 
statutes designed to limit greenhouse gas emis-
sions, including costs relating to transportation, 
facilities, and equipment. 
(c) MEMBERSHIP.— 
(1) IN GENERAL.—The Commission shall con-
sist of 9 members, as follows: 
(A) 1 member appointed by the Speaker of 
the House of Representatives, in consultation 
with the majority leadership of the relevant 
House committees. 
(B) 1 member appointed by the minority 
leader of the House of Representatives, in con-
sultation with the minority leadership of the rel-
evant House committees. 
(C) 1 member appointed by the majority 
leader of the Senate, in consultation with the 
majority leadership of the relevant Senate com-
mittees. 
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(B) critical operational issues to be as-
sessed in addition to the key performance pa-
rameters; 
(C) specific development test and evalua-
tion phases and the scope of each phase; 
(D) modeling and simulation activities to 
be performed, if any, and the scope of such ac-
tivities; 
(E) early operational assessments to be 
performed, if any, and the scope of such assess-
ments; 
(F) operational test and evaluation phases; 
(G) an estimate of the resources, including 
funds, that will be required for all test, evalua-
tion, assessment, modeling, and simulation ac-
tivities; and 
(H) the Government entity or independent 
entity that will perform the test, evaluation, as-
sessment, modeling, and simulation activities. 
(4) UPDATE.—The Coast Guard Chief Acquisi-
tion Officer shall approve an updated TEMP when-
ever there is a revision to program or project test 
and evaluation strategy, scope, or phasing. 
(5) LIMITATION.—The Coast Guard may not— 
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(A) proceed past that phase of the acquisi-
tion process that entails approving the sup-
porting acquisition of a capability or asset be-
fore the TEMP is approved by the Coast Guard 
Chief Acquisition Officer; or 
(B) award any production contract for a 
capability, asset, or sub-system for which a 
TEMP is required under this subsection before 
the TEMP is approved by the Coast Guard 
Chief Acquisition Officer. 
(b) TESTS AND EVALUATIONS.— 
(1) IN GENERAL.—The Commandant shall en-
sure that the Coast Guard conducts developmental 
tests and evaluations and operational tests and eval-
uations of a capability or asset and the sub-systems 
of the capability or asset for which a TEMP has 
been prepared under subsection (a). 
(2) USE
OF
THIRD
PARTIES.—The Com-
mandant shall ensure that the Coast Guard uses 
third parties with expertise in testing and evaluating 
the capabilities or assets and the sub-systems of the 
capabilities or assets being acquired to conduct de-
velopmental tests and evaluations and operational 
tests and evaluations whenever the Coast Guard 
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lacks the capability to conduct the tests and evalua-
tions required by a TEMP. 
(3) COMMUNICATION OF SAFETY CONCERNS.— 
The Commandant shall require that safety concerns 
identified during developmental or operational tests 
and evaluations or through independent or Govern-
ment-conducted design assessments of capabilities or 
assets and sub-systems of capabilities or assets to be 
acquired by the Coast Guard shall be communicated 
as soon as practicable, but not later than 30 days 
after the completion of the test or assessment event 
or activity that identified the safety concern, to the 
program manager for the capability or asset and the 
sub-systems concerned and to the Coast Guard Chief 
Acquisition Officer. 
(4) REPORTING OF SAFETY CONCERNS.—Any 
safety concerns that have been reported to the Chief 
Acquisition Officer for an acquisition program or 
project shall be reported by the Commandant to the 
appropriate congressional committees at least 90 
days before the award of any contract or issuance of 
any delivery order or task order for low, initial, or 
full-rate production of the capability or asset con-
cerned if they will remain uncorrected or unmiti-
gated at the time such a contract is awarded or de-
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livery order or task order is issued. The report shall 
include a justification for the approval of that level 
of production of the capability or asset before the 
safety concern is corrected or mitigated. The report 
shall also include an explanation of the actions that 
will be taken to correct or mitigate the safety con-
cern, the date by which those actions will be taken, 
and the adequacy of current funding to correct or 
mitigate the safety concern. 
(5) ASSET ALREADY IN LOW, INITIAL, OR FULL- 
RATE PRODUCTION.—If operational test and evalua-
tion on a capability or asset already in low, initial, 
or full-rate production identifies a safety concern 
with the capability or asset or any sub-systems of 
the capability or asset not previously identified dur-
ing developmental or operational test and evaluation, 
the Commandant shall— 
(A) notify the program manager and the 
Chief Acquisition Officer of the safety concern 
as soon as practicable, but not later than 30 
days after the completion of the test and eval-
uation event or activity that identified the safe-
ty concern; and 
(B) notify the appropriate congressional 
Committee of the safety concern not later than 
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HR 1665 RFS 
(1) in section 253(a)— 
(A) by inserting ‘‘and’’ after ‘‘considered,’’; 
and 
(B) by striking ‘‘, and the number of offi-
cers the board may recommend for promotion’’; 
(2) in section 258— 
(A) by inserting ‘‘(a) IN GENERAL.—’’ be-
fore the existing text; 
(B) in subsection (a) (as so designated) by 
striking the colon at the end of the material 
preceding paragraph (1) and inserting ‘‘—’’; 
and 
(C) by adding at the end the following: 
‘‘(b) PROVISION OF DIRECTION AND GUIDANCE.— 
‘‘(1) In addition to the information provided 
pursuant to subsection (a), the Commandant may 
furnish the selection board— 
‘‘(A) specific direction relating to the needs 
of the Coast Guard for officers having par-
ticular skills, including direction relating to the 
need for a minimum number of officers with 
particular skills within a specialty; and 
‘‘(B) any other guidance that the Com-
mandant believes may be necessary to enable 
the board to properly perform its functions. 
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HR 1665 RFS 
‘‘(2) Selections made based on the direction and 
guidance provided under this subsection shall not ex-
ceed the maximum percentage of officers who may 
be selected from below the announced promotion 
zone at any given selection board convened under 
section 251 of this title.’’; 
(3) in section 259(a), by inserting after ‘‘whom 
the board’’ the following: ‘‘, giving due consideration 
to the needs of the Coast Guard for officers with 
particular skills so noted in specific direction fur-
nished to the board by the Commandant under sec-
tion 258 of this title,’’; and 
(4) in section 260(b), by inserting after ‘‘quali-
fied for promotion’’ the following: ‘‘to meet the 
needs of the service (as noted in specific direction 
furnished the board by the Commandant under sec-
tion 258 of this title)’’. 
SEC. 305. COAST GUARD ACQUISITION WORKFORCE EXPE-
DITED HIRING AUTHORITY. 
(a) IN GENERAL.—For purposes of sections 3304, 
5333, and 5753 of title 5, United States Code, the Com-
mandant may— 
(1) designate any category of acquisition posi-
tions within the Coast Guard as shortage category 
positions; and 
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HR 1665 RFS 
(2) use the authorities in such sections to re-
cruit and appoint highly qualified persons directly to 
positions so designated. 
(b) LIMITATION.—The Commandant may not ap-
point a person to a position of employment under this sub-
section after September 30, 2012. 
Passed the House of Representatives July 29, 2009. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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‘‘§ 1041. War profiteering and fraud 
‘‘(a) PROHIBITION.—Whoever, in any matter involv-
ing a contract with, or the provision of goods or services 
to, the United States or a provisional authority, in connec-
tion with a mission of the United States Government over-
seas, knowingly— 
‘‘(1)(A) executes or attempts to execute a 
scheme or artifice to defraud the United States or 
that authority; or 
‘‘(B) materially overvalues any good or service 
with the intent to defraud the United States or that 
authority; 
shall be fined not more than $1,000,000 or imprisoned 
not more than 20 years, or both; or 
‘‘(2) in connection with the contract or the pro-
vision of those goods or services— 
‘‘(A) falsifies, conceals, or covers up by any 
trick, scheme, or device a material fact; 
‘‘(B) makes any materially false, fictitious, 
or fraudulent statements or representations; or 
‘‘(C) makes or uses any materially false 
writing or document knowing the same to con-
tain any materially false, fictitious, or fraudu-
lent statement or entry; 
shall be fined not more than $1,000,000 or impris-
oned not more than 10 years, or both. 
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‘‘(b) EXTRATERRITORIAL JURISDICTION.—There is 
extraterritorial Federal jurisdiction over an offense under 
this section. 
‘‘(c) VENUE.—A prosecution for an offense under 
this section may be brought— 
‘‘(1) as authorized by chapter 211 of this title; 
‘‘(2) in any district where any act in further-
ance of the offense took place; or 
‘‘(3) in any district where any party to the con-
tract or provider of goods or services is located.’’. 
(2) TABLE OF SECTIONS.—The table of sections 
for chapter 47 of title 18, United States Code, is 
amended by adding at the end the following: 
‘‘1041. War profiteering and fraud.’’. 
(b) CRIMINAL FORFEITURE.—Section 982(a)(2)(B) 
of title 18, United States Code, is amended by striking 
‘‘or 1030’’ and inserting ‘‘1030, or 1041’’. 
(c) MONEY LAUNDERING.—Section 1956(c)(7)(D) of 
title 18, United States Code, is amended by inserting ‘‘sec-
tion 1041 (relating to war profiteering and fraud),’’ after 
‘‘liquidating agent of financial institution),’’. 
(d) RICO.—Section 1961(1) of title 18, United 
States Code, is amended by inserting ‘‘section 1041 (relat-
ing to war profiteering and fraud),’’ after ‘‘in connection 
with access devices),’’. 
Æ 
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