•HRES 1665 EH 
‘‘(1) ISSUANCE OF GUIDANCE.—Not later than one 
year after the date of enactment of the Coast Guard Au-
thorization Act for Fiscal Years 2010 and 2011, the 
Commandant shall issue guidance to address the quali-
fications, resources, responsibilities, tenure, and account-
ability of program and project managers for the manage-
ment 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 train-
ing levels to be required of those appointed to 
project or program management positions; 
‘‘(B) authorities available to project or pro-
gram managers, including, to the extent appro-
priate, 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 pro-
gram.
•HRES 1665 EH 
‘‘(2) STRATEGY.— 
‘‘(A) IN GENERAL.—Not later than 18 months 
after the date of enactment of this section, the 
Commandant shall develop a comprehensive strat-
egy 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 man-
agers, including the rotational assignments 
that will be provided to project or program 
managers; 
‘‘(ii) the provision of enhanced training 
and educational 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 man-
agers by experienced senior executives and pro-
gram managers within the Coast Guard, and
•HRES 1665 EH 
through rotational assignments to the Depart-
ment of Defense; 
‘‘(iv) the methods by which the Coast 
Guard will collect and disseminate best prac-
tices and lessons learned on systems acquisi-
tion to enhance project and program manage-
ment throughout the Coast Guard; 
‘‘(v) the templates and tools that will be 
used to support improved data gathering and 
analysis for project and program management 
and oversight purposes, including the metrics 
that will be utilized to assess the effectiveness 
of Coast Guard project or program managers 
in managing systems acquisition efforts; and 
‘‘(vi) the methods by which the account-
ability of project or program managers for the 
results of acquisition projects and programs 
will be increased. 
‘‘(c) ACQUISITION WORKFORCE.— 
‘‘(1) IN
GENERAL.—The Commandant shall des-
ignate a sufficient number of positions to be in the Coast 
Guard’s acquisition workforce to perform acquisition-re-
lated functions at Coast Guard headquarters and field 
activities.
•HRES 1665 EH 
‘‘(2) REQUIRED POSITIONS.—In designating posi-
tions under subsection (a), the Commandant shall in-
clude, at a minimum, positions encompassing the fol-
lowing competencies and functions: 
‘‘(A) Program management. 
‘‘(B) Systems planning, research, development, 
engineering, and testing. 
‘‘(C) Procurement, including contracting. 
‘‘(D) Industrial and contract property manage-
ment. 
‘‘(E) Life-cycle logistics. 
‘‘(F) Quality control and assurance. 
‘‘(G) Manufacturing and production. 
‘‘(H) Business, cost estimating, financial man-
agement, and auditing. 
‘‘(I) Acquisition education, training, and career 
development. 
‘‘(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.
•HRES 1665 EH 
‘‘(4) APPROPRIATE
EXPERTISE
REQUIRED.—The 
Commandant shall ensure that each individual assigned 
to a position in the acquisition workforce has the appro-
priate expertise to carry out the responsibilities of that 
position. 
‘‘(d) MANAGEMENT INFORMATION SYSTEM.— 
‘‘(1) IN GENERAL.—The Commandant shall estab-
lish a management information system capability to im-
prove acquisition workforce management and reporting. 
‘‘(2) 
INFORMATION
MAINTAINED.—Information 
maintained with such capability shall include the fol-
lowing 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-re-
lated certifications. 
‘‘(B) Promotion rates for officers and members 
of the Coast Guard in the acquisition workforce. 
‘‘(e) REPORT ON ADEQUACY OF ACQUISITION WORK-
FORCE.— 
‘‘(1) IN GENERAL.—The Commandant shall report 
to the appropriate congressional committees and the 
Committee on Homeland Security of the House of Rep-
resentatives by July 1 of each year on the scope of the
•HRES 1665 EH 
acquisition activities to be performed in the next fiscal 
year and on the adequacy of the current acquisition 
workforce to meet that anticipated workload. 
‘‘(2) CONTENTS.—The report shall— 
‘‘(A) specify the number of officers, members, 
and employees of the Coast Guard currently and 
planned to be assigned to each position designated 
under subsection (c); and 
‘‘(B) identify positions that are understaffed to 
meet the anticipated acquisition workload, and ac-
tions that will be taken to correct such under-
staffing. 
‘‘(f) APPOINTMENTS TO ACQUISITION POSITIONS.—The 
Commandant shall ensure that no requirement or preference 
for officers or members of the Coast Guard is used in the 
consideration of persons for positions in the acquisition work-
force. 
‘‘(g) CAREER PATHS.— 
‘‘(1) IDENTIFICATION OF CAREER PATHS.—To es-
tablish acquisition management as a core competency of 
the Coast Guard, the Commandant shall— 
‘‘(A) ensure that career paths for officers, 
members, and employees of the Coast Guard who 
wish to pursue careers in acquisition are identified 
in terms of the education, training, experience, and
•HRES 1665 EH 
assignments necessary for career progression of 
those officers, members, and employees to the most 
senior positions in the acquisition workforce; and 
‘‘(B) publish information on such career paths. 
‘‘(2) PROMOTION PARITY.—The Commandant shall 
ensure that promotion parity is established for officers 
and members of the Coast Guard who have been as-
signed to the acquisition workforce relative to officers 
and members who have not been assigned to the acquisi-
tion workforce. 
‘‘§ 563. Recognition of Coast Guard personnel for excel-
lence in acquisition 
‘‘(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of the Coast Guard Authorization Act for 
Fiscal Years 2010 and 2011, the Commandant shall com-
mence implementation of a program to recognize excellent 
performance by individuals and teams comprised of officers, 
members, and employees of the Coast Guard that contributed 
to the long-term success of a Coast Guard acquisition project 
or program. 
‘‘(b) ELEMENTS.—The program shall include— 
‘‘(1) specific award categories, criteria, and eligi-
bility and manners of recognition; 
‘‘(2) procedures for the nomination by personnel of 
the Coast Guard of individuals and teams comprised of
•HRES 1665 EH 
officers, members, and employees of the Coast Guard for 
recognition under the program; and 
‘‘(3) procedures for the evaluation of nominations 
for recognition under the program by one or more panels 
of individuals from the Government, academia, and the 
private sector who have such expertise and are appointed 
in such manner as the Commandant shall establish for 
the purposes of this program. 
‘‘(c) AWARD OF CASH BONUSES.—As part of the pro-
gram required by subsection (a), the Commandant, subject to 
the availability of appropriations, may award to any civilian 
employee recognized pursuant to the program a cash bonus 
to the extent that the performance of such individual so rec-
ognized warrants the award of such bonus. 
‘‘§ 564. Prohibition on use of lead systems integrators 
‘‘(a) IN GENERAL.— 
‘‘(1) USE OF LEAD SYSTEMS INTEGRATOR.—Except 
as provided in subsection (b), the Commandant may not 
use a private sector entity as a lead systems integrator 
for an acquisition contract awarded or delivery order or 
task order issued after the date of enactment of the 
Coast Guard Authorization Act for Fiscal Years 2010 
and 2011. 
‘‘(2) FULL AND OPEN COMPETITION.—The Com-
mandant and any lead systems integrator engaged by
•HRES 1665 EH 
the Coast Guard, pursuant to the exceptions described in 
subsection (b), shall use full and open competition for 
any acquisition contract awarded after the date of enact-
ment of that Act, unless otherwise excepted in accord-
ance with Federal acquisition laws and regulations pro-
mulgated under those laws, including the Federal Acqui-
sition Regulation. 
‘‘(3) NO EFFECT ON SMALL BUSINESS ACT.—Noth-
ing in this subsection shall be construed to supersede or 
otherwise affect the authorities provided by and under 
the Small Business Act (15 U.S.C. 631 et seq.). 
‘‘(b) EXCEPTIONS.— 
‘‘(1) NATIONAL DISTRESS AND RESPONSE SYSTEM 
MODERNIZATION PROGRAM; C4ISR; NATIONAL SECURITY 
CUTTERS 2 AND 3.—Notwithstanding subsection (a), the 
Commandant may use a private sector entity as a lead 
systems integrator for the Coast Guard to complete the 
National Distress and Response System Modernization 
Program (otherwise known as the ‘Rescue 21’ program), 
the C4ISR projects directly related to the Integrated 
Deepwater program, and National Security Cutters 2 
and 3, if the Secretary of the department in which the 
Coast Guard is operating certifies that—
•HRES 1665 EH 
‘‘(A) the acquisition is in accordance with Fed-
eral law and the Federal Acquisition Regulation; 
and 
‘‘(B) the acquisition and the use of a private 
sector lead systems integrator for the acquisition is 
in the best interest of the Federal Government. 
‘‘(2) REPORT
ON
DECISIONMAKING
PROCESS.—If 
the Commandant uses a private sector lead systems inte-
grator for an acquisition, the Commandant shall notify 
in writing the appropriate congressional committees of 
the Commandant’s determination and shall provide to 
such committees a detailed rationale for the determina-
tion, at least 30 days before the award of a contract or 
issuance of a delivery order or task order, using a pri-
vate sector lead systems integrator, including a compari-
son of the cost of the acquisition through the private 
sector lead systems integrator with the expected cost if 
the acquisition were awarded directly to the manufac-
turer or shipyard. For purposes of that comparison, the 
cost of award directly to a manufacturer or shipyard 
shall include the costs of Government contract manage-
ment 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-
•HRES 1665 EH 
acquisition workforce personnel and expertise within the 
Coast Guard, through an arrangement with other Fed-
eral agencies, or through contracts or other arrange-
ments with private sector entities, to perform the func-
tions and responsibilities of the lead systems integrator 
in an efficient and cost-effective manner. 
‘‘§ 565. Required contract terms 
‘‘(a) IN GENERAL.—The Commandant shall ensure that 
a contract awarded or a delivery order or task order issued 
for an acquisition of a capability or an asset with an expected 
service life of 10 or more years and with a total acquisition 
cost that is equal to or exceeds $10,000,000 awarded or 
issued by the Coast Guard after the date of enactment of the 
Coast Guard Authorization Act for Fiscal Years 2010 and 
2011— 
‘‘(1) provides that all certifications for an end-state 
capability or asset under such contract, delivery order, 
or task order, respectively, will be conducted by the 
Commandant or an independent third party, and that 
self-certification by a contractor or subcontractor is not 
allowed; 
‘‘(2) provides that the Commandant shall maintain 
the authority to establish, approve, and maintain tech-
nical requirements;
•HRES 1665 EH 
ment that is not consistent with the Federal Acquisition 
Regulations. 
‘‘(2) EXTENSION OF PROGRAM.—A contract, con-
tract modification, or award term extending a contract 
with a lead systems integrator— 
‘‘(A) may not include any minimum require-
ments for the purchase of a given or determinable 
number of specific capabilities or assets; and 
‘‘(B) shall be reviewed by an independent third 
party with expertise in acquisition management, 
and the results of that review shall be submitted to 
the appropriate congressional committees at least 
60 days prior to the award of the contract, contract 
modification, or award term. 
‘‘(c) INTEGRATED PRODUCT TEAMS.—Integrated prod-
uct teams, and all teams that oversee integrated product 
teams, shall be chaired by officers, members, or employees of 
the Coast Guard. 
‘‘(d) TECHNICAL AUTHORITY.—The Commandant shall 
maintain or designate the technical authority to establish, ap-
prove, and maintain technical requirements. Any such des-
ignation shall be made in writing and may not be delegated 
to the authority of the Chief Acquisition Officer established 
by section 56 of this title.
•HRES 1665 EH 
‘‘§ 566. 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 ac-
quisition programs. The Commandant shall also seek oppor-
tunities to make use of Department of Defense contracts, and 
contracts of other appropriate agencies, to obtain the best 
possible price for assets acquired for the Coast Guard. 
‘‘(b) INTERSERVICE
TECHNICAL
ASSISTANCE.—The 
Commandant shall seek to enter into a memorandum of un-
derstanding 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, Develop-
ment, and Acquisition, including the Navy Systems Com-
mand, with the oversight of Coast Guard major acquisition 
programs. The memorandum of understanding or memo-
randum of agreement shall, at a minimum, provide for— 
‘‘(1) the exchange of technical assistance and sup-
port that the Assistant Commandants for Acquisition, 
Human Resources, Engineering, and Information tech-
nology may identify; 
‘‘(2) the use, as appropriate, of Navy technical ex-
pertise; and 
‘‘(3) the temporary assignment or exchange of per-
sonnel between the Coast Guard and the Office of the 
Assistant Secretary of the Navy for Research, Develop-
•HRES 1665 EH 
ment, and Acquisition, including Naval Systems Com-
mand, to facilitate the development of organic capabili-
ties in the Coast Guard. 
‘‘(c) TECHNICAL
REQUIREMENT
APPROVAL
PROCE-
DURES.—The Chief Acquisition Officer shall adopt, to the ex-
tent practicable, procedures modeled after those used by the 
Navy Senior Acquisition Official to approve all technical re-
quirements. 
‘‘(d) ASSESSMENT.—Within 180 days after the date of 
enactment of the Coast Guard Authorization Act for fiscal 
years 2010 and 2011, the Comptroller General of the United 
States shall transmit a report to the appropriate congres-
sional committees that— 
‘‘(1) contains an assessment of current Coast 
Guard acquisition and management capabilities to man-
age Level 1 and Level 2 acquisitions; 
‘‘(2) includes recommendations as to how the Coast 
Guard can improve its acquisition management, either 
through internal reforms or by seeking acquisition exper-
tise from the Department of Defense; and 
‘‘(3) addresses specifically the question of whether 
the Coast Guard can better leverage Department of De-
fense or other agencies’ contracts that would meet the 
needs of Level 1 or Level 2 acquisitions in order to ob-
tain the best possible price.
•HRES 1665 EH 
‘‘§ 567. 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 Activity 
for approval of an undefinitized contractual action shall in-
clude a description of the anticipated effect on requirements 
of the Coast Guard if a delay is incurred for the purposes 
of determining contractual terms, specifications, and price be-
fore performance is begun under the contractual action. 
‘‘(c) REQUIREMENTS
FOR UNDEFINITIZED CONTRAC-
TUAL ACTIONS.— 
‘‘(1) DEADLINE FOR AGREEMENT ON TERMS, SPEC-
IFICATIONS, AND PRICE.—A contracting officer of the 
Coast Guard may not enter into an undefinitized con-
tractual action unless the contractual action provides for 
agreement upon contractual terms, specification, and 
price by the earlier of— 
‘‘(A) the end of the 180-day period beginning 
on the date on which the contractor submits a 
qualifying proposal to definitize the contractual 
terms, specifications, and price; or 
‘‘(B) the date on which the amount of funds 
obligated under the contractual action is equal to
•HRES 1665 EH 
more than 50 percent of the negotiated overall ceil-
ing price for the contractual action. 
‘‘(2) LIMITATION ON OBLIGATIONS.— 
‘‘(A) IN GENERAL.—Except as provided in sub-
paragraph (B), the contracting officer for an 
undefinitized contractual action may not obligate 
under such contractual action an amount that ex-
ceeds 50 percent of the negotiated overall ceiling 
price until the contractual terms, specifications, and 
price are definitized for such contractual action. 
‘‘(B) EXCEPTION.—Notwithstanding subpara-
graph (A), if a contractor submits a qualifying pro-
posal to definitize an undefinitized contractual ac-
tion before an amount that exceeds 50 percent of 
the negotiated overall ceiling price is obligated on 
such action, the contracting officer for such action 
may not obligate with respect to such contractual 
action an amount that exceeds 75 percent of the ne-
gotiated 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 contract 
if the Commandant determines that the waiver is nec-
essary to support—
•HRES 1665 EH 
‘‘(A) a contingency operation (as that term is 
defined in section 101(a)(13) of title 10); 
‘‘(B) operations to prevent or respond to a 
transportation security incident (as defined in sec-
tion 70101(6) of title 46); 
‘‘(C) an operation in response to an emergency 
that poses an unacceptable threat to human health 
or safety or to the marine environment; or 
‘‘(D) an operation in response to a natural dis-
aster or major disaster or emergency designated by 
the President under the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 
5121 et seq.). 
‘‘(4) LIMITATION
ON
APPLICATION.—This sub-
section does not apply to an undefinitized contractual ac-
tion for the purchase of initial spares. 
‘‘(d) INCLUSION OF NONURGENT REQUIREMENTS.—Re-
quirements 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.
•HRES 1665 EH 
‘‘(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 en-
sure that the profit allowed on an undefinitized contractual 
action for which the final price is negotiated after a substan-
tial portion of the performance required is completed re-
flects— 
‘‘(1) the possible reduced cost risk of the contractor 
with respect to costs incurred during performance of the 
contract before the final price is negotiated; and 
‘‘(2) the reduced cost risk of the contractor with re-
spect to costs incurred during performance of the re-
maining portion of the contract. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) UNDEFINITIZED CONTRACTUAL ACTION.— 
‘‘(A) IN GENERAL.—Except as provided in sub-
paragraph (B), the term ‘undefinitized contractual 
action’ means a new procurement action 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.
•HRES 1665 EH 
‘‘(B) EXCLUSION.—The term ‘undefinitized 
contractual action’ does not include contractual ac-
tions with respect to— 
‘‘(i) foreign military sales; 
‘‘(ii) purchases in an amount not in excess 
of the amount of the simplified acquisition 
threshold; or 
‘‘(iii) special access programs. 
‘‘(2) QUALIFYING
PROPOSAL.—The term ‘‘quali-
fying proposal’ means a proposal that contains sufficient 
information to enable complete and meaningful audits of 
the information contained in the proposal as determined 
by the contracting officer. 
‘‘§ 568. Guidance on excessive pass-through charges 
‘‘(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of the Coast Guard Authorization Act for 
Fiscal Years 2010 and 2011, the Commandant shall issue 
guidance to ensure that pass-through charges on contracts, 
subcontracts, delivery orders, and task orders that are en-
tered into with a private entity acting as a lead systems inte-
grator by or on behalf of the Coast Guard are not excessive 
in relation to the cost of work performed by the relevant con-
tractor or subcontractor. The guidance shall, at a min-
imum—
•HRES 1665 EH 
‘‘(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 Govern-
ment. 
‘‘(b) EXCESSIVE PASS-THROUGH CHARGE DEFINED.— 
In this section the term ‘excessive pass-through charge’, with 
respect to a contractor or subcontractor that adds no, or neg-
ligible, 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 performed by a lower tier con-
tractor or subcontractor, other than reasonable charges for 
the direct costs of managing lower tier contractors and sub-
contracts 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 the Coast Guard Authorization Act 
for Fiscal Years 2010 and 2011.
•HRES 1665 EH 
‘‘§ 569. Report on former Coast Guard officials employed 
by contractors to the agency 
‘‘(a) REPORT REQUIRED.—Not later than December 31, 
2011, and annually thereafter, the Comptroller General of the 
United States shall submit a report to the appropriate con-
gressional committees on the employment during the pre-
ceding 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 contrac-
tors in the preceding calendar year. 
‘‘(b) OBJECTIVES OF REPORT.—At a minimum, the re-
port required by this section shall assess the extent to which 
former Coast Guard officials who receive compensation from 
Coast Guard contractors have been assigned by those con-
tractors to work on contracts or programs between the con-
tractor and the Coast Guard, including contracts or programs 
for which the former official personally had oversight respon-
sibility or decisionmaking authority when they served in or 
worked for the Coast Guard. 
‘‘(c) CONFIDENTIALITY REQUIREMENT.—The report re-
quired by this subsection shall not include the names of the 
former Coast Guard officials who receive compensation from 
Coast Guard contractors. 
‘‘(d) ACCESS TO INFORMATION.—A Coast Guard con-
tractor shall provide the Comptroller General access to infor-
•HRES 1665 EH 
mation 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 Executive Service under sub-
chapter 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. 
‘‘SUBCHAPTER II—IMPROVED ACQUISITION 
PROCESS AND PROCEDURES 
‘‘§ 571. Identification of major system acquisitions 
‘‘(a) IN GENERAL.— 
‘‘(1) SUPPORT
MECHANISMS.—The Commandant 
shall develop and implement mechanisms to support the 
establishment of mature and stable operational require-
ments for all acquisitions.
•HRES 1665 EH 
‘‘(2) MISSION ANALYSIS; AFFORDABILITY ASSESS-
MENT.—The Commandant may not initiate a Level 1 or 
Level 2 acquisition project or program until the Com-
mandant— 
‘‘(A) completes a mission analysis that— 
‘‘(i) identifies the specific capability gaps 
to be addressed by the project or program; and 
‘‘(ii) develops a clear mission need to be 
addressed by the project or program; and 
‘‘(B) prepares a preliminary affordability as-
sessment for the project or program. 
‘‘(b) ELEMENTS.— 
‘‘(1) REQUIREMENTS.—The mechanisms required 
by subsection (a) shall ensure the implementation of a 
formal process for the development of a mission-needs 
statement, concept-of-operations document, capability 
development plan, and resource proposal for the initial 
project or program funding, and shall ensure the project 
or program is included in the Coast Guard Capital In-
vestment Plan. 
‘‘(2) ASSESSMENT OF TRADE-OFFS.—In conducting 
an affordability assessment under subsection (a)(2)(B), 
the Commandant shall develop and implement mecha-
nisms to ensure that trade-offs among cost, schedule, 
and performance are considered in the establishment of
•HRES 1665 EH 
preliminary operational requirements for development 
and production of new assets and capabilities for Level 
1 and Level 2 acquisitions projects and programs. 
‘‘(c) HUMAN
RESOURCE
CAPITAL
PLANNING.—The 
Commandant shall develop staffing predictions, define human 
capital performance initiatives, and identify preliminary train-
ing needs required to implement each Level 1 and Level 2 ac-
quisition project and program. 
‘‘§ 572. Acquisition 
‘‘(a) IN GENERAL.—The Commandant may not establish 
a Level 1 or Level 2 acquisition project or program until the 
Commandant— 
‘‘(1) clearly defines the operational requirements for 
the project or program; 
‘‘(2) establishes the feasibility of alternatives; 
‘‘(3) develops an acquisition project or program 
baseline; 
‘‘(4) produces a life-cycle cost estimate; and 
‘‘(5) assesses the relative merits of alternatives to 
determine a preferred solution in accordance with the re-
quirements of this section. 
‘‘(b) SUBMISSION REQUIRED BEFORE PROCEEDING.— 
Any Coast Guard Level 1 or Level 2 acquisition project or 
program may not begin to obtain any capability or asset or 
proceed beyond that phase of its development that entails ap-
•HRES 1665 EH 
proving the supporting acquisition until the Commandant 
submits to the appropriate congressional committees the fol-
lowing: 
‘‘(1) The key performance parameters, the key sys-
tem attributes, and the operational performance at-
tributes of the capability or asset to be acquired under 
the proposed acquisition project or program. 
‘‘(2) A detailed list of the systems or other capabili-
ties with which the capability or asset to be acquired is 
intended to be interoperable, including an explanation of 
the attributes of interoperability. 
‘‘(3) The anticipated acquisition project or program 
baseline and acquisition unit cost for the capability or 
asset to be acquired under the project or program. 
‘‘(4) A detailed schedule for the acquisition process 
showing when all capability and asset acquisitions are to 
be completed and when all acquired capabilities and as-
sets are to be initially and fully deployed. 
‘‘(c) ANALYSIS OF ALTERNATIVES.— 
‘‘(1) IN GENERAL.—The Coast Guard may not ac-
quire an experimental or technically immature capability 
or asset or implement a Level 1 or Level 2 acquisition 
project or program, unless it has prepared an analysis 
of alternatives for the capability or asset to be acquired
•HRES 1665 EH 
in the concept and technology development phase of the 
acquisition process for the capability or asset. 
‘‘(2) REQUIREMENTS.—The analysis of alternatives 
shall be prepared by a federally funded research and de-
velopment center, a qualified entity of the Department 
of Defense, or a similar independent third-party entity 
that has appropriate acquisition expertise and has no fi-
nancial interest in any part of the acquisition project or 
program that is the subject of the analysis. At a min-
imum, the analysis of alternatives shall include— 
‘‘(A) an assessment of the technical maturity 
of the capability or asset, and technical and other 
risks; 
‘‘(B) an examination of capability, interoper-
ability, and other advantages and disadvantages; 
‘‘(C) an evaluation of whether different com-
binations or quantities of specific assets or capabili-
ties could meet the Coast Guard’s overall perform-
ance needs; 
‘‘(D) a discussion of key assumptions and vari-
ables, and sensitivity to change in such assumptions 
and variables; 
‘‘(E) when an alternative is an existing capa-
bility, asset, or prototype, an evaluation of relevant 
safety and performance records and costs;
•HRES 1665 EH 
‘‘(F) a calculation of life-cycle costs includ-
ing— 
‘‘(i) an examination of likely research and 
development costs and the levels of uncertainty 
associated with such estimated costs; 
‘‘(ii) an examination of likely production 
and deployment costs and the levels of uncer-
tainty associated with such estimated costs; 
‘‘(iii) an examination of likely operating 
and support costs and the levels of uncertainty 
associated with such estimated costs; 
‘‘(iv) 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 
‘‘(v) such additional measures as the Com-
mandant or the Secretary of the department in 
which the Coast Guard is operating determines 
to be necessary for appropriate evaluation of 
the capability or asset; and 
‘‘(G) the business case for each viable alter-
native. 
‘‘(d) TEST AND EVALUATION MASTER PLAN.— 
‘‘(1) IN GENERAL.—For any Level 1 or Level 2 ac-
quisition project or program the Chief Acquisition Offi-
•HRES 1665 EH 
cer must approve a test and evaluation master plan spe-
cific to the acquisition project or program for the capa-
bility, asset, or subsystems of the capability or asset and 
intended to minimize technical, cost, and schedule risk 
as early as practicable in the development of the project 
or program. 
‘‘(2) TEST AND EVALUATION STRATEGY.—The mas-
ter plan shall— 
‘‘(A) set forth an integrated test and evalua-
tion strategy that will verify that capability-level or 
asset-level and subsystem-level design and develop-
ment, including performance and supportability, 
have been sufficiently proven before the capability, 
asset, or subsystem of the capability or asset is ap-
proved for production; and 
‘‘(B) require that adequate developmental tests 
and evaluations and operational tests and evalua-
tions established under subparagraph (A) are per-
formed to inform production decisions. 
‘‘(3) 
OTHER
COMPONENTS
OF
THE
MASTER 
PLAN.—At a minimum, the master plan shall identify— 
‘‘(A) the key performance parameters to be re-
solved through the integrated test and evaluation 
strategy;
•HRES 1665 EH 
‘‘(B) critical operational issues to be assessed 
in addition to the key performance parameters; 
‘‘(C) specific development test and evaluation 
phases and the scope of each phase; 
‘‘(D) modeling and simulation activities to be 
performed, if any, and the scope of such activities; 
‘‘(E) early operational assessments to be per-
formed, if any, and the scope of such assessments; 
‘‘(F) operational test and evaluation phases; 
‘‘(G) an estimate of the resources, including 
funds, that will be required for all test, evaluation, 
assessment, modeling, and simulation activities; and 
‘‘(H) the Government entity or independent en-
tity that will perform the test, evaluation, assess-
ment, modeling, and simulation activities. 
‘‘(4) UPDATE.—The Chief Acquisition Officer must 
approve an updated master plan whenever there is a re-
vision to project or program test and evaluation strategy, 
scope, or phasing. 
‘‘(5) LIMITATION.—The Coast Guard may not— 
‘‘(A) proceed beyond that phase of the acquisi-
tion process that entails approving the supporting 
acquisition of a capability or asset before the mas-
ter plan is approved by the Chief Acquisition Offi-
cer; or
•HRES 1665 EH 
‘‘(B) award any production contract for a ca-
pability, asset, or subsystem for which a master 
plan is required under this subsection before the 
master plan is approved by the Chief Acquisition 
Officer. 
‘‘(e) LIFE-CYCLE COST ESTIMATES.— 
‘‘(1) IN GENERAL.—The Commandant shall imple-
ment mechanisms to ensure the development and regular 
updating of life-cycle cost estimates for each acquisition 
with a total acquisition cost that equals or exceeds 
$10,000,000 and an expected service life of 10 or more 
years, and to ensure that these estimates are considered 
in decisions to develop or produce new or enhanced capa-
bilities and assets. 
‘‘(2) TYPES OF ESTIMATES.—In addition to life- 
cycle cost estimates that may be developed by acquisition 
program offices, the Commandant shall require that an 
independent life-cycle cost estimate be developed for each 
Level 1 or Level 2 acquisition project or program. 
‘‘(3) REQUIRED UPDATES.—For each Level 1 or 
Level 2 acquisition project or program the Commandant 
shall require that life-cycle cost estimates shall be up-
dated before each milestone decision is concluded and 
the project or program enters a new acquisition phase.
•HRES 1665 EH 
‘‘§ 573. Preliminary development and demonstration 
‘‘(a) IN GENERAL.—The Commandant shall ensure that 
developmental test and evaluation, operational test and eval-
uation, life-cycle cost estimates, and the development and 
demonstration requirements applied by this chapter to acqui-
sition projects and programs are met to confirm that the 
projects or programs meet the requirements identified in the 
mission-analysis and affordability assessment prepared under 
section 571(a)(2), the operational requirements developed 
under section 572(a)(1) and the following development and 
demonstration objectives: 
‘‘(1) To demonstrate that the design, manufac-
turing, and production solution is based upon a stable, 
producible, and cost-effective product design. 
‘‘(2) To ensure that the product capabilities meet 
contract specifications, acceptable operational perform-
ance requirements, and system security requirements. 
‘‘(3) To ensure that the product design is mature 
enough to commit to full production and deployment. 
‘‘(b) TESTS AND EVALUATIONS.— 
‘‘(1) IN GENERAL.—The Commandant shall ensure 
that the Coast Guard conducts developmental tests and 
evaluations and operational tests and evaluations of a 
capability or asset and the subsystems of the capability 
or asset in accordance with the master plan prepared for 
the capability or asset under section 572(d)(1).
•HRES 1665 EH 
‘‘(2) USE OF THIRD PARTIES.—The Commandant 
shall ensure that the Coast Guard uses independent 
third parties with expertise in testing and evaluating the 
capabilities or assets and the subsystems of the capabili-
ties or assets being acquired to conduct developmental 
tests and evaluations and operational tests and evalua-
tions whenever the Coast Guard lacks the capability to 
conduct the tests and evaluations required by a master 
plan. 
‘‘(3) COMMUNICATION OF SAFETY CONCERNS.—The 
Commandant shall require that safety concerns identi-
fied during developmental or operational tests and eval-
uations or through independent or Government-con-
ducted design assessments of capabilities or assets and 
subsystems of capabilities or assets to be acquired by the 
Coast Guard shall be communicated as soon as prac-
ticable, 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 ca-
pability or asset and the subsystems concerned and to 
the Chief Acquisition Officer. 
‘‘(4) REPORTING OF SAFETY CONCERNS.—Any safe-
ty concerns that have been reported to the Chief Acquisi-
tion Officer for an acquisition program or project shall 
be reported by the Commandant to the appropriate con-
•HRES 1665 EH 
gressional 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 capa-
bility or asset concerned if they will remain uncorrected 
or unmitigated at the time such a contract is awarded 
or delivery 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 
concerns are corrected or mitigated. The report shall 
also include an explanation of the actions that will be 
taken to correct or mitigate the safety concerns, the date 
by which those actions will be taken, and the adequacy 
of current funding to correct or mitigate the safety con-
cerns. 
‘‘(5) ASSET ALREADY IN LOW, INITIAL, OR FULL- 
RATE PRODUCTION.—If operational test and evaluation 
of a capability or asset already in low, initial, or full-rate 
production identifies a safety concern with the capability 
or asset or any subsystems of the capability or asset not 
previously identified during 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
•HRES 1665 EH 
the completion of the test and evaluation event or 
activity that identified the safety concern; and 
‘‘(B) notify the Chief Acquisition Officer and 
include in such notification— 
‘‘(i) an explanation of the actions that will 
be taken to correct or mitigate the safety con-
cern in all capabilities or assets and sub-
systems of the capabilities or assets 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 capabilities or 
assets and subsystems of the capabilities or as-
sets, 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 safe-
ty concern in capabilities or assets and sub-
systems of the capabilities or assets and in pre-
viously produced capabilities or assets and sub-
systems. 
‘‘(c) TECHNICAL CERTIFICATION.— 
‘‘(1) IN GENERAL.—The Commandant shall ensure 
that any Level 1 or Level 2 acquisition project or pro-
•HRES 1665 EH 
gram is certified by the technical authority of the Coast 
Guard after review by an independent third party with 
capabilities in the mission area, asset, or particular asset 
component. 
‘‘(2) 
TEMPEST 
TESTING.—The 
Commandant 
shall— 
‘‘(A) cause all electronics on all aircraft, sur-
face, and shore capabilities and assets that require 
TEMPEST certification and that are delivered after 
the date of enactment of the Coast Guard Author-
ization Act of 2010 to be tested in accordance with 
TEMPEST standards and communications security 
(comsec) standards by an independent third party 
that is authorized by the Federal Government to 
perform such testing; and 
‘‘(B) certify that the assets meet all applicable 
TEMPEST requirements. 
‘‘(3) CUTTER CLASSIFICATION.— 
‘‘(A) IN
GENERAL.—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 the Coast Guard Au-
thorization Act of 2010 to be classed by the Amer-
ican Bureau of Shipping before final acceptance.
100 
•HRES 1665 EH 
‘‘(B) REPORTS.—Not later than December 31, 
2011, and biennially thereafter, the Commandant 
shall provide a report to the Committee on Trans-
portation and Infrastructure of the House of Rep-
resentatives and the Committee on Commerce, 
Science, and Transportation of the Senate identi-
fying which, if any, Coast Guard cutters that have 
been issued a certificate of classification by the 
American Bureau of Shipping have not been main-
tained in class and detailing the reasons why they 
have not been maintained in class. 
‘‘(4) OTHER
VESSELS.—The Commandant shall 
cause the design and construction of each National Secu-
rity Cutter, other than National Security Cutters 1, 2, 
and 3, to be assessed by an independent third party with 
expertise in vessel design and construction certification. 
‘‘(5) 
AIRCRAFT
AIRWORTHINESS.—The 
Com-
mandant shall cause all aircraft and aircraft engines ac-
quired by the Coast Guard and delivered after the date 
of enactment of the Coast Guard Authorization Act of 
2010 to be assessed for airworthiness by an independent 
third party with expertise in aircraft and aircraft engine 
certification before final acceptance. 
‘‘§ 574. Acquisition, production, deployment, and support 
‘‘(a) IN GENERAL.—The Commandant shall—
101 
•HRES 1665 EH 
‘‘(1) ensure there is a stable and efficient produc-
tion and support capability to develop an asset or capa-
bility for the Coast Guard; 
‘‘(2) conduct follow-on testing to confirm and mon-
itor performance and correct deficiencies; and 
‘‘(3) conduct acceptance tests and trials prior to the 
delivery of each asset or system to ensure the delivered 
asset or system achieves full operational capability. 
‘‘(b) ELEMENTS.—The Commandant shall— 
‘‘(1) execute production contracts; 
‘‘(2) ensure that delivered assets and capabilities 
meet operational cost and schedules requirements estab-
lished in the acquisition program baseline; 
‘‘(3) validate manpower and training requirements 
to meet system needs to operate, maintain, support, and 
instruct the assets or capabilities; and 
‘‘(4) prepare an acquisition project or program 
transition plan to enter into programmatic sustainment, 
operations, and support. 
‘‘§ 575. Acquisition program baseline breach 
‘‘(a) IN GENERAL.—The Commandant shall submit a re-
port to the appropriate congressional committees and the 
Committee on Homeland Security of the House of Represent-
atives as soon as possible, but not later than 30 days, after 
the Chief Acquisition Officer of the Coast Guard becomes
118 
•HRES 1665 EH 
‘‘(d) MANAGEMENT INFORMATION SYSTEM.—The Sec-
retary, acting through the Commandant, shall establish a 
management information system for the prevention and re-
sponse workforces that shall provide, at a minimum, the fol-
lowing standardized information on persons serving in those 
workforces: 
‘‘(1) Qualifications, assignment history, and tenure 
in assignments. 
‘‘(2) Promotion rates for military and civilian per-
sonnel. 
‘‘(e) ASSESSMENT OF ADEQUACY OF MARINE SAFETY 
WORKFORCE.— 
‘‘(1) REPORT.—The Secretary, acting through the 
Commandant, shall report to the Committee on Trans-
portation and Infrastructure of the House of Represent-
atives and the Committee on Commerce, Science, and 
Transportation of the Senate by December 1 of each 
year on the adequacy of the current marine safety work-
force to meet that anticipated workload. 
‘‘(2) CONTENTS.—The report shall specify the num-
ber of civilian and military Coast Guard personnel cur-
rently assigned to marine safety positions and shall iden-
tify positions that are understaffed to meet the antici-
pated marine safety workload.