Chief Acquisition Officer must approve a Test and 
Evaluation Master Plan specific to the acquisition 
program or project for the capability, asset, or sub- 
systems of the capability or asset and intended to 
minimize technical, cost, and schedule risk as early 
as practicable in the development of the program or 
project. 
(2) TEST
AND
EVALUATION
STRATEGY.—The 
TEMP shall— 
(A) set forth an integrated test and evalua-
tion strategy that will verify that capability-level 
or asset-level and sub-system-level design and 
development, 
including 
performance 
and 
supportability, have been sufficiently proven be-
fore the capability, asset, or sub-system of the 
capability or asset is approved for production; 
and 
(B) require that adequate developmental 
tests and evaluations and operational tests and 
evaluations established under subparagraph (A) 
are performed to inform production decisions. 
(3) OTHER COMPONENTS OF TEMP.—At a min-
imum, the TEMP shall identify—
(A) the key performance parameters to be 
resolved through the integrated test and evalua-
tion strategy; 
(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— 
(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 
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-
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 
30 days after notification is made to the pro-
gram manager and Chief Acquisition Officer, 
and include in such notification— 
(i) an explanation of the actions that 
will be taken to correct or mitigate the 
safety concern in all capabilities or assets 
and sub-systems of the capabilities or as-
sets yet to be produced, and the date by 
which those actions will be taken; 
(ii) an explanation of the actions that 
will be taken to correct or mitigate the 
safety concern in previously produced ca-
pabilities or assets and sub-systems of the 
capabilities or assets, and the date by 
which those actions will be taken; and 
(iii) an assessment of the adequacy of 
current funding to correct or mitigate the 
safety concern in capabilities or assets and 
sub-systems of the capabilities or assets 
and in previously produced capabilities or 
assets and sub-systems. 
(c) DEFINITIONS.—In this section:
(1) DEVELOPMENTAL
TEST
AND
EVALUA-
TION.—The term ‘‘developmental test and evalua-
tion’’ means— 
(A) the testing of a capability or asset and 
the sub-systems of the capability or asset to de-
termine whether they meet all contractual per-
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-
pairing, or operating the capability, asset, or sub- 
system or any hazard associated with the capability, 
asset, or sub-system that is likely to cause major 
damage to the capability, asset, or sub-system dur-
ing the course of its normal operation by a typical 
Coast Guard user. 
(4) TEMP.—The term ‘‘TEMP’’ means a Test 
and Evaluation Master Plan for which approval is 
required under this section. 
SEC. 205. CAPABILITY STANDARDS. 
(a) CUTTER CLASSIFICATION.—The Commandant 
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 final acceptance. 
(b) TEMPEST TESTING.—The Commandant shall— 
(1) cause all electronics on all aircraft, surface, 
and shore capabilities and assets that require TEM-
PEST certification and that are delivered after the 
date of enactment of this Act to be tested in accord-
ance with TEMPEST standards and communication 
security (COMSEC) standards by an independent 
third party that is authorized by the Federal Gov-
ernment to perform such testing; and 
(2) certify that the capabilities and assets meet 
all applicable TEMPEST requirements. 
(c) NATIONAL SECURITY CUTTERS.— 
(1) NATIONAL SECURITY CUTTERS 1 AND 2.— 
Not later than 90 days before the Coast Guard 
awards any contract or issues any delivery order or 
task order to strengthen the hull of either of Na-
tional Security Cutter 1 or 2 to resolve the struc-
tural design and performance issues identified in the 
Department of Homeland Security Inspector Gen-
eral’s report OIG–07–23 dated January 2007, the 
Commandant shall submit to the appropriate con-
gressional committees and the Committee on Home-
land Security of the House of Representatives all re-
sults of an assessment of the proposed hull strength-
ening design conducted by the Coast Guard, includ-
ing— 
(A) a description in detail of the extent to 
which the hull strengthening measures to be im-
plemented on those cutters will enable the cut-
ters to meet contract and performance require-
ments; 
(B) a cost benefit analysis of the proposed 
hull strengthening measures for National Secu-
rity Cutters 1 and 2; and 
(C) a description of any operational re-
strictions that would have to be applied to ei-
ther National Security Cutter 1 or 2 if the pro-
posed hull strengthening measures were not im-
plemented on either cutter. 
(2) OTHER VESSELS.—The Commandant shall 
cause the design and construction of each National 
Security Cutter, other than National Security Cut-
ters 1, 2, and 3, to be assessed by an independent 
third party with expertise in vessel design and con-
struction certification. 
(d) AIRCRAFT AIRWORTHINESS.—The Commandant 
shall cause all aircraft and aircraft engines acquired by 
the Coast Guard and delivered after the date of enactment 
of this Act to be assessed for airworthiness by an inde-
pendent third party with expertise in aircraft and aircraft 
engine certification, before final acceptance.
SEC. 206. ACQUISITION PROGRAM REPORTS. 
Any Coast Guard Level 1 or Level 2 acquisition pro-
gram or project may not begin to obtain any capability 
or asset or proceed beyond that phase of its development 
that entails approving the supporting acquisition until the 
Commandant submits to the appropriate congressional 
committees the following: 
(1) The key performance parameters, the key 
system attributes, and the operational performance 
attributes of the capability and asset to be acquired 
under the proposed acquisition program or project 
will be built to achieve. 
(2) A detailed list of the systems or other capa-
bilities with which the capability or asset to be ac-
quired is intended to be interoperable, including an 
explanation of the attributes of interoperability. 
(3) The anticipated acquisition program base-
line and acquisition unit cost for the capability or 
asset to be produced and deployed under the pro-
gram or project. 
(4) A detailed schedule for the acquisition proc-
ess showing when all capability and asset acquisi-
tions are to be completed and when all acquired ca-
pabilities and assets are to be initially and fully de-
ployed.
SEC. 207. UNDEFINITIZED CONTRACTUAL ACTIONS. 
(a) IN GENERAL.—The Coast Guard may not enter 
into an undefinitized contractual action unless such action 
is directly approved by the Head of Contracting Activity 
of the Coast Guard. 
(b) REQUESTS FOR UNDEFINITIZED CONTRACTUAL 
ACTIONS.—Any request to the Head of Contracting Activ-
ity for approval of an undefinitized contractual action cov-
ered under subsection (a) must include a description of 
the anticipated effect on requirements of the Coast Guard 
if a delay is incurred for the purposes of determining con-
tractual terms, specifications, and price before perform-
ance is begun under the contractual action. 
(c) REQUIREMENTS FOR UNDEFINITIZED CONTRAC-
TUAL ACTIONS.— 
(1) DEADLINE
FOR
AGREEMENT
ON
TERMS, 
SPECIFICATIONS, AND PRICE.—A contracting officer 
of the Coast Guard may not enter into an 
undefinitized contractual action unless the contrac-
tual action provides for agreement upon contractual 
terms, specification, and price by the earlier of— 
(A) the end of the 180-day period begin-
ning on the date on which the contractor sub-
mits a qualifying proposal to definitize the con-
tractual terms, specifications, and price; or
(B) the date on which the amount of funds 
obligated under the contractual action is equal 
to more than 50 percent of the negotiated over-
all ceiling price for the contractual action. 
(2) LIMITATION ON OBLIGATIONS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the contracting officer for an 
undefinitized contractual action may not obli-
gate under such contractual action an amount 
that exceeds 50 percent of the negotiated over-
all ceiling price until the contractual terms, 
specifications, and price are definitized for such 
contractual action. 
(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), if a contractor submits a quali-
fying proposal to definitize an undefinitized 
contractual action before an amount that ex-
ceeds 50 percent of the negotiated overall ceil-
ing price is obligated on such action, the con-
tracting officer for such action may not obligate 
with respect to such contractual action an 
amount that exceeds 75 percent of the nego-
tiated overall ceiling price until the contractual 
terms, specifications, and price are definitized 
for such contractual action.
(3) WAIVER.—The Commandant may waive the 
application of this subsection with respect to a con-
tract if the Commandant determines that the waiver 
is necessary to support— 
(A) a contingency operation (as that term 
is defined in section 101(a)(13) of title 10, 
United States Code); 
(B) an operation in response to an emer-
gency that poses an unacceptable threat to 
human health or safety or to the marine envi-
ronment; or 
(C) an operation in response to a natural 
disaster or major disaster or emergency des-
ignated by the President under the Robert T. 
Stafford Disaster Relief and Emergency Assist-
ance Act (42 U.S.C. 5121 et seq.). 
(4) LIMITATION ON APPLICATION.—This sub-
section does not apply to an undefinitized contrac-
tual action for the purchase of initial spares. 
(d) INCLUSION OF NONURGENT REQUIREMENTS.— 
Requirements for spare parts and support equipment that 
are not needed on an urgent basis may not be included 
in an undefinitized contractual action by the Coast Guard 
for spare parts and support equipment that are needed
on an urgent basis unless the Commandant approves such 
inclusion as being— 
(1) good business practice; and 
(2) in the best interests of the United States. 
(e) MODIFICATION
OF SCOPE.—The scope of an 
undefinitized contractual action under which performance 
has begun may not be modified unless the Commandant 
approves such modification as being— 
(1) good business practice; and 
(2) in the best interests of the United States. 
(f) ALLOWABLE PROFIT.—The Commandant shall 
ensure that the profit allowed on an undefinitized contrac-
tual action for which the final price is negotiated after 
a substantial portion of the performance required is com-
pleted reflects— 
(1) the possible reduced cost risk of the con-
tractor with respect to costs incurred during per-
formance of the contract before the final price is ne-
gotiated; and 
(2) the reduced cost risk of the contractor with 
respect to costs incurred during performance of the 
remaining portion of the contract. 
(g) DEFINITIONS.—In this section: 
(1) UNDEFINITIZED CONTRACTUAL ACTION.—
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘undefinitized con-
tractual action’’ means a new procurement ac-
tion entered into by the Coast Guard for which 
the contractual terms, specifications, or price 
are not agreed upon before performance is 
begun under the action. 
(B) EXCLUSION.—Such term does not in-
clude contractual actions with respect to the fol-
lowing: 
(i) Foreign military sales. 
(ii) Purchases in an amount not in ex-
cess of the amount of the simplified acqui-
sition threshold. 
(iii) Special access programs. 
(2) QUALIFYING PROPOSAL.—The term ‘‘quali-
fying proposal’’ means a proposal that contains suf-
ficient information to enable complete and meaning-
ful audits of the information contained in the pro-
posal as determined by the contracting officer. 
SEC. 
208. 
GUIDANCE 
ON 
EXCESSIVE 
PASS-THROUGH 
CHARGES. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Commandant shall issue 
guidance to ensure that pass-through charges on con-
tracts, subcontracts, delivery orders, and task orders that 
are entered into with a private entity acting as a lead sys-
tems integrator by or on behalf of the Coast Guard are 
not excessive in relation to the cost of work performed by 
the relevant contractor or subcontractor. The guidance 
shall, at a minimum— 
(1) set forth clear standards for determining 
when no, or negligible, value has been added to a 
contract by a contractor or subcontractor; 
(2) set forth procedures for preventing the pay-
ment by the Government of excessive pass-through 
charges; and 
(3) identify any exceptions determined by the 
Commandant to be in the best interest of the Gov-
ernment. 
(b) 
EXCESSIVE
PASS-THROUGH
CHARGE
DE-
FINED.—In this section the term ‘‘excessive pass-through 
charge’’, with respect to a contractor or subcontractor that 
adds no, or negligible, value to a contract or subcontract, 
means a charge to the Government by the contractor or 
subcontractor that is for overhead or profit on work per-
formed by a lower-tier contractor or subcontractor, other 
than reasonable charges for the direct costs of managing 
lower-tier contractors and subcontracts and overhead and 
profit based on such direct costs.
(c) APPLICATION
OF
GUIDANCE.—The guidance 
under this subsection shall apply to contracts awarded to 
a private entity acting as a lead systems integrator by or 
on behalf of the Coast Guard on or after the date that 
is 360 days after the date of enactment of this Act. 
SEC. 209. ACQUISITION OF MAJOR CAPABILITIES: ALTER-
NATIVES ANALYSIS. 
The Coast Guard may not acquire an experimental 
or technically immature capability or asset or implement 
a Level 1 or Level 2 acquisition, unless it has conducted 
an alternatives analysis for the capability or asset to be 
acquired in the concept and technology development phase 
of the acquisition process for the capability or asset. Such 
analysis shall be conducted by a federally funded research 
and development center, a qualified entity of the Depart-
ment of Defense, or a similar independent third party enti-
ty that has appropriate acquisition expertise. Such alter-
natives analysis shall include— 
(1) an assessment of the technical maturity of 
the capability or asset and technical and other risks; 
(2) an examination of capability, interoper-
ability, and other advantages and disadvantages; 
(3) an evaluation of whether different combina-
tions or quantities of specific capabilities or assets
could meet the Coast Guard’s overall performance 
needs; 
(4) a discussion of key assumptions and vari-
ables, and sensitivity to change in such assumptions 
and variables; 
(5) when an alternative is an existing capa-
bility, asset, or prototype, an evaluation of relevant 
safety and performance records and costs; 
(6) a calculation of life-cycle costs, including— 
(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— 
(1) a likely cost overrun greater than 10 per-
cent of the acquisition program baseline for that in-
dividual capability or asset or a class of capabilities 
or assets; 
(2) a likely delay of more than 180 days in the 
delivery schedule for any individual capability or 
asset or class of capabilities or assets; or 
(3) an anticipated failure for any individual ca-
pability or asset or class of capabilities or assets to 
satisfy any key performance threshold or parameter 
under the acquisition program baseline. 
(b) CONTENT.—The report submitted under sub-
section (a) shall include— 
(1) a detailed description of the breach and an 
explanation of its cause; 
(2) the projected impact to performance, cost, 
and schedule;
(3) an updated acquisition program baseline 
and the complete history of changes to the original 
acquisition program baseline; 
(4) the updated acquisition schedule and the 
complete history of changes to the original schedule; 
(5) a full life-cycle cost analysis for the capa-
bility or asset or class of capabilities or assets; 
(6) a remediation plan identifying corrective ac-
tions and any resulting issues or risks; and 
(7) a description of how progress in the remedi-
ation plan will be measured and monitored. 
(c) SUBSTANTIAL VARIANCES IN COSTS OR SCHED-
ULE.—If a likely cost overrun is greater than 20 percent 
or a likely delay is greater than 12 months from the costs 
and schedule described in the acquisition program baseline 
for any Level 1 or Level 2 acquisition program or project 
of the Coast Guard, the Commandant shall include in the 
report a written certification, with a supporting expla-
nation, that— 
(1) the capability or asset or capability or asset 
class to be acquired under the program or project is 
essential to the accomplishment of Coast Guard mis-
sions; 
(2) there are no alternatives to such capability 
or asset or capability or asset class which will pro-
vide equal or greater capability in both a more cost- 
effective and timely manner; 
(3) the new acquisition schedule and estimates 
for total acquisition cost are reasonable; and 
(4) the management structure for the acquisi-
tion program is adequate to manage and control per-
formance, cost, and schedule. 
SEC. 211. REPORT ON FORMER COAST GUARD OFFICIALS 
EMPLOYED BY CONTRACTORS TO THE AGEN-
CY. 
(a) REPORT REQUIRED.—Not later than December 
31, 2009, and annually thereafter, the Comptroller Gen-
eral of the United States shall submit a report to the ap-
propriate congressional committees on the employment 
during the preceding year by Coast Guard contractors of 
individuals who were Coast Guard officials in the previous 
5-year period. The report shall assess the extent to which 
former Coast Guard officials were provided compensation 
by Coast Guard contractors in the preceding calendar 
year. 
(b) OBJECTIVES OF REPORT.—At a minimum, the 
report required by this section shall assess the extent to 
which former Coast Guard officials who receive compensa-
tion from Coast Guard contractors have been assigned by 
those contractors to work on contracts or programs be-
tween the contractor and the Coast Guard, including con-
tracts or programs for which the former official personally 
had oversight responsibility or decision-making authority 
when they served in or worked for the Coast Guard. 
(c) CONFIDENTIALITY REQUIREMENT.—The report 
required by this subsection shall not include the names 
of the former Coast Guard officials who receive compensa-
tion from Coast Guard contractors. 
(d) ACCESS TO INFORMATION.—A Coast Guard con-
tractor shall provide the Comptroller General access to in-
formation requested by the Comptroller General for the 
purpose of conducting the study required by this section. 
(e) DEFINITIONS.—In this section: 
(1) COAST
GUARD
CONTRACTOR.—The term 
‘‘Coast Guard contractor’’ includes any person that 
received at least $10,000,000 in contractor awards 
from the Coast Guard in the calendar year covered 
by the annual report. 
(2) COAST GUARD OFFICIAL.—The term ‘‘Coast 
Guard official’’ includes former officers of the Coast 
Guard who were compensated at a rate of pay for 
grade O–7 or above during the calendar year prior 
to the date on which they separated from the Coast 
Guard, and former civilian employees of the Coast 
Guard who served at any level of the Senior Execu-
tive Service under subchapter VIII of chapter 53 of 
title 5, United States Code, during the calendar year 
prior to the date on which they separated from the 
Coast Guard. 
SEC. 212. DEPARTMENT OF DEFENSE CONSULTATION. 
(a) IN GENERAL.—The Commandant shall make ar-
rangements as appropriate with the Secretary of Defense 
for support in contracting and management of Coast 
Guard acquisition programs. The Commandant shall also 
seek opportunities to make use of Department of Defense 
contracts, and contracts of other appropriate agencies, to 
obtain the best possible price for capabilities and assets 
acquired for the Coast Guard. 
(b) INTER-SERVICE TECHNICAL ASSISTANCE.—The 
Commandant may enter into a memorandum of under-
standing or a memorandum of agreement with the Sec-
retary of the Navy to obtain the assistance of the Office 
of the Assistant Secretary of the Navy for Research, De-
velopment, and Acquisition, including the Navy Systems 
Commands, with the oversight of Coast Guard major ac-
quisition programs. Such memorandum of understanding 
or memorandum of agreement shall, at a minimum, pro-
vide for— 
(1) the exchange of technical assistance and 
support that the Coast Guard Chief Acquisition Offi-
cer, Coast Guard Chief Engineer, and the Coast 
Guard Chief Information Officer may identify; 
(2) the use, as appropriate, of Navy technical 
expertise; and 
(3) the temporary assignment or exchange of 
personnel between the Coast Guard and the Office 
of the Assistant Secretary of the Navy for Research, 
Development, and Acquisition, including Naval Sys-
tems Commands, to facilitate the development of or-
ganic capabilities in the Coast Guard. 
(c) TECHNICAL REQUIREMENT APPROVAL PROCE-
DURES.—The Coast Guard Chief Acquisition Officer shall 
adopt, to the extent practicable, procedures that are simi-
lar to those used by the senior procurement executive of 
the Department of the Navy to approve all technical re-
quirements. 
(d) ASSESSMENT.—Within 180 days after the date 
of enactment of this Act, the Comptroller General shall 
transmit a report to the appropriate congressional com-
mittees that— 
(1) contains an assessment of current Coast 
Guard acquisition and management capabilities to 
manage Level 1 and Level 2 acquisitions; 
(2) includes recommendations as to how the 
Coast Guard can improve its acquisition manage-
ment, either through internal reforms or by seeking 
acquisition expertise from the Department of De-
fense; and 
(3) addresses specifically the question of wheth-
er the Coast Guard can better leverage Department 
of Defense or other agencies’ contracts that would 
meet the needs of Level 1 or Level 2 acquisitions in 
order to obtain the best possible price. 
TITLE III—COAST GUARD 
PERSONNEL 
SEC. 301. 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 CHIEF ACQUISITION OFFI-
CER.—There shall be in the Coast Guard a Chief Acquisi-
tion Officer selected by the Commandant who shall be a 
Rear Admiral or civilian from the Senior Executive Service 
(career reserved) and who meets the qualifications set 
forth under subsection (b). The Chief Acquisition Officer 
shall serve at the Assistant Commandant level and have 
acquisition management as that individual’s primary duty. 
‘‘(b) QUALIFICATIONS.—
‘‘(1) The Chief Acquisition Officer and any 
Flag Officer serving in the Acquisitions Directorate 
shall be an acquisition professional with a program 
manager level III certification and must have at 
least 10 years experience in an acquisition position, 
of which at least 4 years were spent in one of the 
following qualifying positions: 
‘‘(A) Program executive officer. 
‘‘(B) Program manager of a Level 1 or 
Level 2 acquisition. 
‘‘(C) Deputy program manager of a Level 
1 or Level 2 acquisition. 
‘‘(D) Project manager for a Level 1 or 
Level 2 acquisition. 
‘‘(E) Any other acquisition position of sig-
nificant responsibility in which the primary du-
ties are supervisory or management duties. 
‘‘(2) The Commandant shall periodically publish 
a list of the positions designated under this sub-
section. 
‘‘(c) AUTHORITY AND FUNCTIONS OF THE CHIEF AC-
QUISITION OFFICER.—The functions of the Chief Acquisi-
tion Officer shall include— 
‘‘(1) monitoring the performance of programs 
and projects on the basis of applicable performance
measurements 
and 
advising 
the 
Commandant, 
through the chain of command, regarding the appro-
priate business strategy to achieve the missions of 
the Coast Guard; 
‘‘(2) maximizing the use of full and open com-
petition at the prime contract and subcontract levels 
in the acquisition of property, capabilities, assets, 
and services by the Coast Guard by establishing poli-
cies, 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, in-
cluding performance and delivery schedules, at the 
lowest cost or best value considering the nature of 
the property, capability, asset, or service procured; 
‘‘(3) making acquisition decisions in concur-
rence with the technical authority of the Coast 
Guard, as designated by the Commandant, and con-
sistent 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 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 acquisition work-
force; 
‘‘(7) assessing the requirements established for 
Coast Guard personnel regarding knowledge and 
skill in acquisition resources and management and 
the adequacy of such requirements 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 improv-
ing acquisition management capability.’’. 
(b) APPLICATION
OF
QUALIFICATION
REQUIRE-
MENT.—Section 55(b) of title 14, United States Code, as 
amended by this section, shall apply beginning October 1, 
2011. 
(c) 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.’’.
(d) ELEVATION OF DISPUTES TO THE CHIEF ACQUI-
SITION OFFICER.—Within 45 days after the elevation to 
the Chief Acquisition Officer of any design or other dis-
pute regarding a Level 1 or Level 2 acquisition, the Com-
mandant shall provide to the appropriate congressional 
committees a detailed description of the issue and the ra-
tionale underlying the decision taken by the Chief Acquisi-
tion Officer to resolve the issue. 
(e) 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 shall 
establish special rate supplements that provide high-
er 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. 302. IMPROVEMENTS IN COAST GUARD ACQUISITION 
MANAGEMENT. 
(a) PROGRAM AND PROJECT MANAGERS.—An indi-
vidual may not be assigned as the program manager for 
a Level 1 or Level 2 acquisition unless the individual holds 
a Level III acquisition certification as a program manager.