Source: http://law2.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title14-chapter11&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGUxNC1zZWN0aW9uMjkw%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim
Timestamp: 2019-03-23 22:45:54
Document Index: 221144110

Matched Legal Cases: ['§108', '§108', '§304', '§108', '§1101', '§402', '§561', '§899', '§3531', '§1101', '§108', '§899', '§402', '§562', '§1', '§210', '§899', '§1102', '§108', '§402', '§1', '§404', '§218', '§804', '§1103', '§899', '§578', '§1103', '§108', '§1104', '§402', '§563', '§1', '§899', '§1104', '§108', '§1105', '§402', '§564', '§1', '§217', '§899', '§1105', '§108', '§304', '§2', '§631', '§108', '§304', '§1106', '§402', '§565', '§1', '§3533', '§1106', '§108', '§108', '§3533', '§3533', '§123', '§1107', '§899', '§579', '§1107', '§108', '§108', '§123', '§1108', '§402', '§566', '§1', '§3534', '§1108', '§108', '§3534', '§3534', '§402', '§402', '§567', '§1109', '§108', '§1805', '§5121', '§1110', '§402', '§569', '§217', '§215', '§102', '§3536', '§1110', '§108', '§108', '§123', '§123', '§102', '§102', '§101', '§108', '§1131', '§402', '§571', '§1131', '§108', '§402', '§572', '§204', '§1132', '§108', '§1133', '§210', '§402', '§573', '§210', '§3522', '§1133', '§108', '§204', '§108', '§108', '§123', '§123', '§3522', '§3522', '§3522', '§3522', '§3522', '§3522', '§3522', '§311', '§818', '§1134', '§402', '§574', '§1134', '§108', '§1135', '§402', '§575', '§3533', '§1135', '§108', '§402', '§576', '§1136', '§108', '§3', '§1137', '§311', '§311', '§108', '§1151', '§26', '§665', '§1151', '§108', '§1152', '§211', '§577', '§3531', '§1152', '§108', '§557', '§311', '§96', '§218', '§1153', '§108', '§1154', '§1128', '§97', '§1154', '§108', '§1155', '§3523', '§657', '§1155', '§108', '§1156', '§304', '§108', '§402', '§581', '§209', '§899', '§3531', '§1171', '§108', '§108', '§123', '§899', '§899', '§899', '§899', '§899']

[USC10] 14 USC Ch. 11: ACQUISITIONS
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14 USC Ch. 11: ACQUISITIONS
CHAPTER 11—ACQUISITIONS
Role of Vice Commandant in major acquisition programs.
Extension of major acquisition program contracts.
Mission need statement.
Contracting for major acquisitions programs.
SUBCHAPTER III—PROCUREMENT
Advance procurement funding.
Limitation on unmanned aircraft systems.
A prior analysis for chapter 11 "PERSONNEL" consisted of items 211 "Original appointment of permanent commissioned officers", 214 "Appointment of temporary officers", 215 "Rank of warrant officers", 251 "Selection boards; convening of boards", 252 "Selection boards; composition of boards", 253 "Selection boards; notice of convening; communication with board", 254 "Selection boards; oath of members", 255 "Number of officers to be selected for promotion", 256 "Promotion zones", 256a "Promotion year; defined", 257 "Eligibility of officers for consideration for promotion", 258 "Selection boards; information to be furnished boards", 259 "Officers to be recommended for promotion", 260 "Selection boards; reports", 261 "Selection boards; submission of reports", 262 "Failure of selection for promotion", 263 "Special selection boards; correction of errors", 271 "Promotions; appointments", 272 "Removal of officer from list of selectees for promotion", 273 "Promotions; acceptance; oath of office", 274 "Promotions; pay and allowances", 275 "Wartime temporary service promotions", 276 "Promotion of officers not included on active duty promotion list", 281 "Revocation of commissions during first five years of commissioned service", 282 "Regular lieutenants (junior grade); separation for failure of selection for promotion", 283 "Regular lieutenants; separation for failure of selection for promotion; continuation", 284 "Regular Coast Guard; officers serving under temporary appointments", 285 "Regular lieutenant commanders and commanders; retirement for failure of selection for promotion", 286 "Discharge in lieu of retirement; separation pay", 286a "Regular warrant officers: separation pay", 287 "Separation for failure of selection for promotion or continuation; time of", 288 "Regular captains; retirement", 289 "Captains; continuation on active duty; involuntary retirement", 290 "Rear admirals and rear admirals (lower half); continuation on active duty; involuntary retirement", 291 "Voluntary retirement after twenty years&apos; service", 292 "Voluntary retirement after thirty years&apos; service", 293 "Compulsory retirement", 294 "Retirement for physical disability after selection for promotion; grade in which retired", 295 "Deferment of retirement or separation for medical reasons", 296 "Flag officers", 321 "Review of records of officers", 322 "Boards of inquiry", 323 "Boards of review", 324 "Composition of boards", 325 "Rights and procedures", 326 "Removal of officer from active duty; action by Secretary", 327 "Officers considered for removal; retirement or discharge; separation benefits", 331 "Recall to active duty during war or national emergency", 332 "Recall to active duty with consent of officer", 333 "Relief of retired officer promoted while on active duty", 334 "Grade on retirement", 335 "Physical fitness of officers", 336 "United States Coast Guard Band; composition; director", 350 "Recruiting campaigns", 351 "Enlistments; term, grade", 352 "Promotion", 353 "Compulsory retirement at age of sixty-two", 354 "Voluntary retirement after thirty years&apos; service", 355 "Voluntary retirement after twenty years&apos; service", 357 "Retirement of enlisted members: increase in retired pay", 359 "Recall to active duty during war or national emergency", 360 "Recall to active duty with consent of member", 361 "Relief of retired enlisted member promoted while on active duty", 362 "Retirement in cases where higher grade or rating has been held", 365 "Extension of enlistments", 366 "Retention beyond term of enlistment in case of disability", 367 "Detention beyond term of enlistment", 369 "Inclusion of certain conditions in enlistment contract", 370 "Discharge within three months before expiration of enlistment", 371 "Aviation cadets; procurement; transfer", 372 "Aviation cadets; benefits", 373 "Aviation cadets; appointment as Reserve officers", 374 "Critical skill training bonus", 421 "Retirement", 422 "Status of recalled personnel", 423 "Computation of retired pay", 424 "Limitations on retirement and retired pay", 424a "Suspension of payment of retired pay of members who are absent from the United States to avoid prosecution", 425 "Board for Correction of Military Records deadline", 426 "Emergency leave retention authority", 427 "Prohibition of certain involuntary administrative separations", 428 "Sea service letters", 429 "Multirater assessment of certain personnel", 430 "Investigations of flag officers and Senior Executive Service employees", 431 "Leave policies for the Coast Guard", and 432 "Personnel of former Lighthouse Service", prior to repeal by Pub. L. 115–282, title I, §108(a), Dec. 4, 2018, 132 Stat. 4207.
2018—Pub. L. 115–282, title I, §108(a), title III, §§304(c)(2), 311(c), Dec. 4, 2018, 132 Stat. 4208, 4245, 4249, inserted chapter 11 designation and heading and added items 1101 to 1171.
2018—Pub. L. 115–282, title I, §108(c)(2), Dec. 4, 2018, 132 Stat. 4210, inserted subchapter I designation and heading.
§1101. Acquisition directorate
(a) Establishment.—The Commandant shall establish an acquisition directorate to provide guidance and oversight for the implementation and management of all Coast Guard acquisition processes, programs, and projects.
(b) Mission.—The mission of the acquisition directorate is—
(1) to acquire and deliver assets and systems that increase operational readiness, enhance mission performance, and create a safe working environment;
(2) to assist in the development of a workforce that is trained and qualified to further the Coast Guard's missions and deliver the best-value products and services to the Nation; and
(3) to meet the needs of customers of major acquisition programs in the most cost-effective manner practicable.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2931, §561; amended Pub. L. 114–328, div. A, title VIII, §899(b)(1)(A), Dec. 23, 2016, 130 Stat. 2333; Pub. L. 115–232, div. C, title XXXV, §3531(c)(6), Aug. 13, 2018, 132 Stat. 2320; renumbered §1101, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 561 of this title as this section.
Subsec. (a). Pub. L. 115–232 substituted "Commandant" for "Commandant of the Coast Guard".
2016—Subsec. (b)(3). Pub. L. 114–328 added par. (3).
Pub. L. 114–328, div. A, title VIII, §899(c), Dec. 23, 2016, 130 Stat. 2335, provided that:
"(1) Requirement.—The Commandant of the Coast Guard shall conduct a review of—
"(A) the authorities provided to the Commandant in [former] chapter 15 of title 14, United States Code [see, now, chapter 11, 14 U.S.C. 1101 et seq.], and other relevant statutes and regulations related to Coast Guard acquisitions, including developing recommendations to ensure that the Commandant plays an appropriate role in the development of requirements, acquisition processes, and the associated budget practices;
"(B) implementation of the strategy prepared in accordance with section 562(b)(2) [now 1102(b)(2)] of title 14, United States Code, as in effect before the enactment of the National Defense Authorization Act for Fiscal Year 2017 [Pub. L. 114–328, see Tables for classification]; and
"(C) acquisition policies, directives, and regulations of the Coast Guard to ensure such policies, directives, and regulations establish a customer-oriented acquisition system.
"(2) Report.—Not later than March 1, 2017, the Commandant shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report containing, at a minimum, the following:
"(A) The recommendations developed by the Commandant under paragraph (1) and other results of the review conducted under such paragraph.
"(B) The actions the Commandant is taking, if any, within the Commandant's existing authority to implement such recommendations.
"(3) Modification of policies, directives, and regulations.—Not later than one year after the date of the enactment of this Act [Dec. 23, 2016], the Commandant of the Coast Guard shall modify the acquisition policies, directives, and regulations of the Coast Guard as necessary to ensure the development and implementation of a customer-oriented acquisition system, pursuant to the review under paragraph (1)(C)."
(a) Project or Program Managers.—
(1) Level 1 projects.—An individual may not be assigned as the project or program manager for a Level 1 acquisition unless the individual holds a Level III acquisition certification as a program manager.
(2) Level 2 projects.—An individual may not be assigned as the project or program manager for a Level 2 acquisition unless the individual holds a Level II acquisition certification as a program manager.
(b) Acquisition Workforce.—
(1) In general.—The Commandant shall designate a sufficient number of positions to be in the Coast Guard's acquisition workforce to perform acquisition-related functions at Coast Guard headquarters and field activities.
(2) Required positions.—In designating positions under subsection (a), the Commandant shall include, at a minimum, positions encompassing the following competencies and functions:
(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.
(4) Appropriate expertise required.—The Commandant shall ensure that each individual assigned to a position in the acquisition workforce has the appropriate expertise to carry out the responsibilities of that position.
(c) Management Information System.—
(1) In general.—The Commandant shall establish a management information system capability to improve acquisition workforce management and reporting.
(2) Information maintained.—Information maintained with such capability shall include the following standardized information on individuals assigned to positions in the workforce:
(d) 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 workforce.
(e) Career Paths.—
(1) Identification of career paths.—To establish acquisition management as a core competency of the Coast Guard, the Commandant shall—
(2) Promotion parity.—The Commandant shall ensure that promotion parity is established for officers and members of the Coast Guard who have been assigned to the acquisition workforce relative to officers and members who have not been assigned to the acquisition workforce.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2931, §562; amended Pub. L. 111–330, §1(4), Dec. 22, 2010, 124 Stat. 3569; Pub. L. 112–213, title II, §210(c)(2)(A), Dec. 20, 2012, 126 Stat. 1551; Pub. L. 114–328, div. A, title VIII, §899(b)(1)(B), Dec. 23, 2016, 130 Stat. 2333; renumbered §1102, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2010—Pub. L. 111–330 amended Pub. L. 111–281, §402(a), which enacted this section.
Pub. L. 111–330, §1, Dec. 22, 2010, 124 Stat. 3569, provided that the amendment made by section 1(4) is effective with the enactment of Pub. L. 111–281.
Pub. L. 111–281, title IV, §404, Oct. 15, 2010, 124 Stat. 2950, as amended by Pub. L. 112–213, title II, §218, Dec. 20, 2012, 126 Stat. 1558; Pub. L. 115–282, title VIII, §804, Dec. 4, 2018, 132 Stat. 4300, provided that:
"(a) In General.—For purposes of section 3304 of title 5, United States Code, the Commandant of the Coast Guard may—
"(b) Reports.—The Commandant shall include in reports under section 569a of title 14, United States Code [now 14 U.S.C. 5103], information described in that section regarding positions designated under this section."
§1103. Role of Vice Commandant in major acquisition programs
The Vice Commandant—
(1) shall represent the customer of a major acquisition program with regard to trade-offs made among cost, schedule, technical feasibility, and performance with respect to such program; and
(2) shall advise the Commandant in decisions regarding the balancing of resources against priorities, and associated trade-offs referred to in paragraph (1), on behalf of the customer of a major acquisition program.
(Added Pub. L. 114–328, div. A, title VIII, §899(b)(1)(E), Dec. 23, 2016, 130 Stat. 2334, §578; renumbered §1103, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 578 of this title as this section.
§1104. Recognition of Coast Guard personnel for excellence in acquisition
(a) In General.—The Commandant shall maintain 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 eligibility and manners of recognition;
(2) procedures for the nomination by personnel of the Coast Guard of individuals and teams comprised of 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 program 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 recognized warrants the award of such bonus.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2934, §563; amended Pub. L. 111–330, §1(4), Dec. 22, 2010, 124 Stat. 3569; Pub. L. 114–328, div. A, title VIII, §899(b)(1)(C), Dec. 23, 2016, 130 Stat. 2333; renumbered §1104, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 563 of this title as this section.
2016—Subsec. (a). Pub. L. 114–328 substituted "The Commandant shall maintain" for "Not later than 180 days after the date of enactment of the Coast Guard Authorization Act of 2010, the Commandant shall commence implementation of".
§1105. Prohibition on use of lead systems integrators
(1) Use of lead systems integrator.—The Commandant may not use a private sector entity as a lead systems integrator.
(2) Full and open competition.—The Commandant shall use full and open competition for any acquisition contract unless otherwise excepted in accordance with Federal acquisition laws and regulations promulgated under those laws, including the Federal Acquisition Regulation.
(3) No effect on small business act.—Nothing 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) Limitation on Financial Interest in Subcontractors.—Neither an entity performing lead systems integrator functions for a Coast Guard acquisition nor a Tier 1 subcontractor for any acquisition may have a financial interest 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 an entity performing lead systems integrator functions or a subcontractor through full and open competition;
(3) the procurement was awarded by a subcontractor through a process over which the entity performing lead systems integrator functions or a Tier 1 subcontractor exercised no control; or
(4) the Commandant has determined that the procurement was awarded in a manner consistent with Federal acquisition laws and regulations promulgated under those laws, including the Federal Acquisition Regulation.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2935, §564; amended Pub. L. 111–330, §1(4), Dec. 22, 2010, 124 Stat. 3569; Pub. L. 112–213, title II, §217(7), Dec. 20, 2012, 126 Stat. 1557; Pub. L. 114–328, div. A, title VIII, §899(b)(1)(D), Dec. 23, 2016, 130 Stat. 2333; renumbered §1105 and amended Pub. L. 115–282, title I, §108(b), title III, §304(d), Dec. 4, 2018, 132 Stat. 4208, 4245.)
The Small Business Act, referred to in subsec. (a)(3), is Pub. L. 85–536, §2(1 et seq.), July 18, 1958, 72 Stat. 384, which is classified generally to chapter 14A (§631 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 631 of Title 15 and Tables.
2018—Pub. L. 115–282, §108(b), renumbered section 564 of this title as this section.
Subsec. (c). Pub. L. 115–282, §304(d), struck out subsec. (c) which related to acquisition of unmanned aerial systems.
2012—Pub. L. 112–213 amended section generally. Prior to amendment, section related to prohibition on use of lead systems integrators and provided for certain exceptions to such prohibition.
§1106. 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—
(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 technical requirements;
(3) requires that any measurement of contractor and subcontractor performance be based on the status of all work performed, including the extent to which the work performed met all performance, cost, and schedule requirements;
(4) specifies that, for the acquisition or upgrade of air, surface, or shore capabilities and assets for which compliance with TEMPEST certification is a requirement, the standard for determining such compliance will be the air, surface, or shore standard then used by the Department of the Navy for that type of capability or asset; and
(5) for any contract awarded to acquire an Offshore Patrol Cutter, includes provisions specifying the service life, fatigue life, and days underway in general Atlantic and North Pacific Sea conditions, maximum range, and maximum speed the cutter will be built to achieve.
(b) Prohibited Provisions.—
(1) In general.—The Commandant shall ensure that any contract awarded or delivery order or task order issued by the Coast Guard does not include any provision allowing for equitable adjustment that is not consistent with the Federal Acquisition Regulations.
(2) Extension of program.—A contract, contract modification, or award term extending a contract with a lead systems integrator—
(A) may not include any minimum requirements 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 product 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, approve, and maintain technical requirements. Any such designation shall be made in writing and may not be delegated to the authority of the Chief Acquisition Officer established by section 308 of this title.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2936, §565; amended Pub. L. 111–330, §1(4), Dec. 22, 2010, 124 Stat. 3569; Pub. L. 115–232, div. C, title XXXV, §3533(f), Aug. 13, 2018, 132 Stat. 2321; renumbered §1106 and amended Pub. L. 115–282, title I, §§108(b), 123(b)(2), Dec. 4, 2018, 132 Stat. 4208, 4240.)
2018—Pub. L. 115–282, §108(b), renumbered section 565 of this title as this section.
Subsec. (a). Pub. L. 115–232, §3533(f)(1), struck out "awarded or issued by the Coast Guard after the date of enactment of the Coast Guard Authorization Act of 2010" after "$10,000,000" in introductory provisions.
Subsec. (b)(1). Pub. L. 115–232, §3533(f)(2), struck out "after the date of enactment of the Coast Guard Authorization Act of 2010" after "Coast Guard".
Subsec. (d). Pub. L. 115–282, §123(b)(2), substituted "section 308" for "section 56".
§1107. Extension of major acquisition program contracts
(a) In General.—Notwithstanding section 1105(a)(2) of this title and section 2304 of title 10, and subject to subsections (b) and (c) of this section, the Secretary may acquire additional units procured under a Coast Guard major acquisition program contract, by extension of such contract without competition, if the Director of the Cost Analysis Division of the Department of Homeland Security determines that the costs that would be saved through award of a new contract in accordance with such sections would not exceed the costs of such an award.
(b) Limitation on Number of Additional Units.—The number of additional units acquired under a contract extension under this section may not exceed the number of additional units for which such determination is made.
(c) Determination of Costs Upon Request.—The Director of the Cost Analysis Division of the Department of Homeland Security shall, at the request of the Secretary, determine for purposes of this section—
(1) the costs that would be saved through award of a new major acquisition program contract in accordance with section 1105(a)(2) for the acquisition of a number of additional units specified by the Secretary; and
(2) the costs of such award, including the costs that would be incurred due to acquisition schedule delays and asset design changes associated with such award.
(d) Number of Extensions.—A contract may be extended under this section more than once.
(Added Pub. L. 114–328, div. A, title VIII, §899(b)(1)(E), Dec. 23, 2016, 130 Stat. 2334, §579; renumbered §1107 and amended Pub. L. 115–282, title I, §§108(b), 123(b)(2), Dec. 4, 2018, 132 Stat. 4208, 4240.)
2018—Pub. L. 115–282, §108(b), renumbered section 579 of this title as this section.
Subsecs. (a), (c)(1). Pub. L. 115–282, §123(b)(2), substituted "section 1105(a)(2)" for "section 564(a)(2)".
§1108. Department of Defense consultation
(a) In General.—The Commandant shall make arrangements 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 assets acquired for the Coast Guard.
(b) Interservice Technical Assistance.—The Commandant shall seek to maintain a memorandum of understanding or a memorandum of agreement with the Secretary of the Navy to obtain the assistance of the Office of the Assistant Secretary of the Navy for Research, Development, and Acquisition, including the Navy Systems Command, with the oversight of Coast Guard major acquisition programs. The memorandum of understanding or memorandum of agreement shall, at a minimum, provide for—
(1) the exchange of technical assistance and support that the Assistant Commandants for Acquisition, Human Resources, Engineering, and Information technology 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 Systems Command, to facilitate the development of organic capabilities in the Coast Guard.
(c) Technical Requirement Approval Procedures.—The Chief Acquisition Officer shall adopt, to the extent practicable, procedures modeled after those used by the Navy Senior Acquisition Official to approve all technical requirements.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2937, §566; amended Pub. L. 111–330, §1(4), Dec. 22, 2010, 124 Stat. 3569; Pub. L. 115–232, div. C, title XXXV, §3534, Aug. 13, 2018, 132 Stat. 2322; renumbered §1108, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 566 of this title as this section.
Subsec. (b). Pub. L. 115–232, §3534(1), substituted "maintain" for "enter into" in introductory provisions.
Subsec. (d). Pub. L. 115–232, §3534(2), struck out subsec. (d) which related to report on assessment of Coast Guard acquisition and management capabilities.
2010—Subsec. (d). Pub. L. 111–330, which directed the amendment of Pub. L. 111–281, §402(a), which enacted this section, by substituting "Coast Guard Authorization Act of 2010" for "Coast Guard Authorization Act for Fiscal Years 2010 and 2011" wherever appearing, was executed in subsec. (d) of this section as added by section 402(a) by making the substitution for text which read "Coast Guard Authorization Act for fiscal years 2010 and 2011", to reflect the probable intent of Congress.
(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 include 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 before performance is begun under the contractual action.
(c) Requirements for Undefinitized Contractual 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 contractual action provides for agreement upon contractual terms, specification, and price by the earlier of—
(2) Limitation on obligations.—
(A) In general.—Except as provided in subparagraph (B), the contracting officer for an undefinitized contractual action may not obligate under such contractual action an amount that exceeds 50 percent of the negotiated overall ceiling price until the contractual terms, specifications, and price are definitized for such contractual action.
(B) Exception.—Notwithstanding subparagraph (A), if a contractor submits a qualifying proposal to definitize an undefinitized contractual action 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 negotiated 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 necessary to support—
(4) Limitation on application.—This subsection does not apply to an undefinitized contractual 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—
(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—
(f) Allowable Profit.—The Commandant shall ensure that the profit allowed on an undefinitized contractual action for which the final price is negotiated after a substantial portion of the performance required is completed reflects—
(1) Undefinitized contractual action.—
(A) In general.—Except as provided in subparagraph (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.
(B) Exclusion.—The term "undefinitized contractual action" does not include contractual actions with respect to—
(2) Qualifying proposal.—The term "qualifying 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.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2938, §567; renumbered §1109, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
Section 70101(6) of title 46, referred to in subsec. (c)(3)(B), was redesignated section 70101(7) of title 46 by Pub. L. 115–254, div. J, §1805(b)(1), Oct. 5, 2018, 132 Stat. 3534.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (c)(3)(D), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143, which is classified principally to chapter 68 (§5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables.
2018—Pub. L. 115–282 renumbered section 567 of this title as this section.
§1110. Mission need statement
(a) In General.—On the date on which the President submits to Congress a budget for fiscal year 2019 under section 1105 of title 31 and every 4 years thereafter, the Commandant shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate an integrated major acquisition mission need statement.
(1) Integrated major acquisition mission need statement.—The term "integrated major acquisition mission need statement" means a document that—
(A) identifies current and projected gaps in Coast Guard mission capabilities using mission hour targets;
(B) explains how each major acquisition program addresses gaps identified under subparagraph (A) if funded at the levels provided for such program in the most recently submitted capital investment plan; and
(C) describes the missions the Coast Guard will not be able to achieve, by fiscal year, for each gap identified under subparagraph (A).
(2) Major acquisition program.—The term "major acquisition program" has the meaning given that term in section 5103.
(3) Capital investment plan.—The term "capital investment plan" means the plan required under section 5102(a)(1).
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2940, §569; amended Pub. L. 112–213, title II, §217(8), Dec. 20, 2012, 126 Stat. 1558; Pub. L. 113–281, title II, §215(a), Dec. 18, 2014, 128 Stat. 3034; Pub. L. 114–120, title I, §102(f), Feb. 8, 2016, 130 Stat. 33; Pub. L. 115–232, div. C, title XXXV, §3536, Aug. 13, 2018, 132 Stat. 2322; renumbered §1110 and amended Pub. L. 115–282, title I, §§108(b), 123(b)(2), Dec. 4, 2018, 132 Stat. 4208, 4240.)
2018—Pub. L. 115–282, §108(b), renumbered section 569 of this title as this section.
Subsec. (a). Pub. L. 115–232 substituted "for fiscal year 2019" for "for fiscal year 2016" and struck out ", on the date on which the President submits to Congress a budget for fiscal year 2019 under such section," after "section 1105 of title 31".
Subsec. (b)(2). Pub. L. 115–282, §123(b)(2), substituted "section 5103" for "section 2903".
Subsec. (b)(3). Pub. L. 115–282, §123(b)(2), substituted "section 5102(a)(1)" for "section 2902(a)(1)".
2016—Subsec. (b)(2). Pub. L. 114–120, §102(f)(1), substituted "in section 2903" for "in section 569a(e)".
Subsec. (b)(3). Pub. L. 114–120, §102(f)(2), substituted "under section 2902(a)(1)" for "under section 663(a)(1)".
2014—Pub. L. 113–281 amended section generally. Prior to amendment, section related to submission of report, not later than Dec. 31, 2011, to appropriate 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.
2012—Subsec. (a). Pub. L. 112–213 struck out "and annually thereafter," after "December 31, 2011,".
Pub. L. 114–120, title I, §101(f), Feb. 8, 2016, 130 Stat. 32, provided that: "The Commandant of the Coast Guard shall submit to the Committee on Homeland Security of the House of Representatives—
"(1) each plan required under section 2904 [now 5104] of title 14, United States Code, as added by subsection (a) of this section;
"(2) each plan required under section 2903(e) [now 5103(e)] of title 14, United States Code, as added by section 206 of this Act;
"(3) each plan required under section 2902 [now 5102] of title 14, United States Code, as redesignated by subsection (d) of this section; and
"(4) each mission need statement required under section 569 [now 1110] of title 14, United States Code."
2018—Pub. L. 115–282, title I, §108(c)(3), Dec. 4, 2018, 132 Stat. 4210, inserted subchapter II designation and heading.
§1131. Identification of major system acquisitions
(1) Support mechanisms.—The Commandant shall develop and implement mechanisms to support the establishment of mature and stable operational requirements for all acquisitions.
(2) Mission analysis; affordability assessment.—The Commandant may not initiate a Level 1 or Level 2 acquisition project or program until the Commandant—
(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 assessment for the project or program.
(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 Investment Plan.
(2) Assessment of trade-offs.—In conducting an affordability assessment under subsection (a)(2)(B), the Commandant shall develop and implement mechanisms to ensure that trade-offs among cost, schedule, and performance are considered in the establishment of 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 training needs required to implement each Level 1 and Level 2 acquisition project and program.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2941, §571; renumbered §1131, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 571 of this title as this section.
(a) In General.—The Commandant may not establish a Level 1 or Level 2 acquisition project or program until the Commandant—
(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 approving the supporting acquisition until the Commandant submits to the appropriate congressional committees the following:
(c) Analysis of Alternatives.—
(1) In general.—The Coast Guard may not acquire 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 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 development center, a qualified entity of the Department of Defense, or a similar independent third-party entity that has appropriate acquisition expertise and has no financial interest in any part of the acquisition project or program that is the subject of the analysis. At a minimum, the analysis of alternatives shall include—
(F) a calculation of life-cycle costs including—
(d) Test and Evaluation Master Plan.—
(1) In general.—For any Level 1 or Level 2 acquisition project or program the Chief Acquisition Officer must approve a test and evaluation master plan specific to the acquisition project or program for the capability, 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 master plan shall—
(3) Other components of the master plan.—At a minimum, the master plan shall identify—
(4) Update.—The Chief Acquisition Officer must approve an updated master plan whenever there is a revision to project or program test and evaluation strategy, scope, or phasing.
(5) Limitation.—The Coast Guard may not—
(e) Life-Cycle Cost Estimates.—
(1) In general.—The Commandant shall implement 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 capabilities 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 updated before each milestone decision is concluded and the project or program enters a new acquisition phase.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2942, §572; amended Pub. L. 114–120, title II, §204(a), Feb. 8, 2016, 130 Stat. 34; renumbered §1132, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 572 of this title as this section.
2016—Subsec. (d)(3)(B) to (J). Pub. L. 114–120 added subpars. (B) and (D) and redesignated former subpar. (B) as (C) and former subpars. (C) to (H) as (E) to (J), respectively.
§1133. Preliminary development and demonstration
(a) In General.—The Commandant shall ensure that developmental test and evaluation, operational test and evaluation, life-cycle cost estimates, and the development and demonstration requirements applied by this chapter to acquisition 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 1131(a)(2), the operational requirements developed under section 1132(a)(1) and the following development and demonstration objectives:
(1) To demonstrate that the design, manufacturing, 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 performance 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 1132(d)(1).1
(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 capabilities or assets being acquired to conduct developmental tests and evaluations and operational tests and evaluations 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 ensure that independent third parties and Government employees that identify safety concerns during developmental or operational tests and evaluations or through independent or Government-conducted design assessments of capabilities or assets and subsystems of capabilities or assets to be acquired by the Coast Guard communicate such concerns 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 subsystems concerned and to the Chief Acquisition Officer.
(4) Reporting of safety concerns.—The Commandant shall ensure that any safety concerns that have been communicated under paragraph (3) for an acquisition program or project are reported 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 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 concerns.
(5) Asset already in low, initial, or full-rate production.—The Commandant shall ensure that if an independent third party or a Government employee identifies a safety concern with a capability or asset or any subsystems of a capability or asset not previously identified during operational test and evaluation of a capability or asset already in low, initial, or full-rate production—
(A) the Commandant, through the Assistant Commandant for Capability, shall 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 evaluation event or activity that identified the safety concern; and
(B) the Deputy Commandant for Mission Support shall notify the Commandant and the Deputy Commandant for Operations of the safety concern within 50 days after the notification required under subparagraph (A), 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 subsystems 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 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 subsystems of the capabilities or assets and in previously produced capabilities or assets and subsystems.
(c) Technical Certification.—
(1) In general.—The Commandant shall ensure that any Level 1 or Level 2 acquisition project or program 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, surface, and shore capabilities and assets that require TEMPEST certification 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 Authorization Act of 2010 to be classed by the American Bureau of Shipping before final acceptance.
[(B) Repealed. Pub. L. 112–213, title II, §210(c)(2)(B), Dec. 20, 2012, 126 Stat. 1551.]
(4) Other vessels.—The Commandant shall cause the design and construction of each National Security 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 Commandant shall cause all aircraft and aircraft engines acquired by the Coast Guard to be assessed for airworthiness by an independent third party with expertise in aircraft and aircraft engine certification before final acceptance.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2944, §573; amended Pub. L. 112–213, title II, §210(c)(2)(B), Dec. 20, 2012, 126 Stat. 1551; Pub. L. 115–232, div. C, title XXXV, §3522, Aug. 13, 2018, 132 Stat. 2314; renumbered §1133 and amended Pub. L. 115–282, title I, §§108(b), 123(b)(2), Dec. 4, 2018, 132 Stat. 4208, 4240.)
Section 1132(d)(1), referred to in subsec. (b)(1), was, prior to amendment of this section by Pub. L. 115–282, a reference to section 572(d)(1) of this title, which was redesignated section 572(f)(1) of this title by Pub. L. 114–120, title II, §204(a)(1), Feb. 8, 2016, 130 Stat. 34. Section 572 of this title was renumbered section 1132 of this title by Pub. L. 115–282, title I, §108(b)(2), Dec. 4, 2018, 132 Stat. 4208.
The date of enactment of the Coast Guard Authorization Act of 2010, referred to in subsec. (c)(3)(A), is the date of enactment of Pub. L. 111–281, which was approved Oct. 15, 2010.
2018—Pub. L. 115–282, §108(b), renumbered section 573 of this title as this section.
Subsec. (a). Pub. L. 115–282, §123(b)(2), in introductory provisions, substituted "section 1131(a)(2)" for "section 571(a)(2)" and "section 1132(a)(1)" for "section 572(a)(1)".
Subsec. (b)(1). Pub. L. 115–282, §123(b)(2), substituted "section 1132(d)(1)" for "section 572(d)(1)".
Subsec. (b)(3). Pub. L. 115–232, §3522(1), substituted "ensure that independent third parties and Government employees that identify safety concerns" for "require that safety concerns identified" and "Coast Guard communicate such concerns as" for "Coast Guard shall be communicated as".
Subsec. (b)(4). Pub. L. 115–232, §3522(2), substituted "The Commandant shall ensure that any safety concerns that have been communicated under paragraph (3) for an acquisition program or project are reported" for "Any safety concerns that have been reported to the Chief Acquisition Officer for an acquisition program or project shall be reported by the Commandant".
Subsec. (b)(5). Pub. L. 115–232, §3522(3)(A), added introductory provisions and struck out former introductory provisions which read as follows: "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—".
Subsec. (b)(5)(A). Pub. L. 115–232, §3522(3)(B), inserted "the Commandant, through the Assistant Commandant for Capability, shall" before "notify".
Subsec. (b)(5)(B). Pub. L. 115–232, §3522(3)(C), substituted "the Deputy Commandant for Mission Support shall notify the Commandant and the Deputy Commandant for Operations of the safety concern within 50 days after the notification required under subparagraph (A), and include in such notification" for "notify the Chief Acquisition Officer and include in such notification" in introductory provisions.
Subsec. (c)(2)(A). Pub. L. 115–232, §3522(4)(A), struck out "and that are delivered after the date of enactment of the Coast Guard Authorization Act of 2010" after "TEMPEST certification".
Subsec. (c)(5). Pub. L. 115–232, §3522(4)(B), struck out "and delivered after the date of enactment of the Coast Guard Authorization Act of 2010" after "acquired by the Coast Guard".
2012—Subsec. (c)(3)(B). Pub. L. 112–213 struck out subpar. (B). Text read as follows: "Not later than December 31, 2011, and biennially thereafter, the Commandant shall provide a report to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate identifying which, if any, Coast Guard cutters that have been issued a certificate of classification by the American Bureau of Shipping have not been maintained in class and detailing the reasons why they have not been maintained in class."
Pub. L. 115–282, title III, §311(f), Dec. 4, 2018, 132 Stat. 4249, provided that: "The Secretary of the department in which the Coast Guard is operating is authorized to enter into a multiyear contract for the procurement of a tenth, eleventh, and twelfth National Security Cutter and associated government-furnished equipment."
Pub. L. 115–282, title VIII, §818(a), Dec. 4, 2018, 132 Stat. 4307, provided that: "The Commandant of the Coast Guard may not certify an eighth National Security Cutter as Ready for Operations before the date on which the Commandant provides to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate—
"(1) a notification of a new standard method for tracking operational employment of Coast Guard major cutters that does not include time during which such a cutter is away from its homeport for maintenance or repair; and
"(2) a report analyzing cost and performance for different approaches to achieving varied levels of operational employment using the standard method required by paragraph (1) that, at a minimum—
"(A) compares over a 30-year period the average annualized baseline cost and performances for a certified National Security Cutter that operated for 185 days away from homeport or an equivalent alternative measure of operational tempo—
"(i) against the cost of a 15 percent increase in days away from homeport or an equivalent alternative measure of operational tempo for a National Security Cutter; and
"(ii) against the cost of the acquisition and operation of an additional National Security Cutter; and
"(B) examines the optimal level of operational employment of National Security Cutters to balance National Security Cutter cost and mission performance."
§1134. Acquisition, production, deployment, and support
(a) In General.—The Commandant shall—
(1) ensure there is a stable and efficient production and support capability to develop an asset or capability for the Coast Guard;
(2) conduct follow-on testing to confirm and monitor 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 established 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.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2947, §574; renumbered §1134, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 574 of this title as this section.
§1135. Acquisition program baseline breach
(a) In General.—The Commandant shall submit a report to the appropriate congressional committees and the Committee on Homeland Security of the House of Representatives 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 15 percent of the acquisition program baseline for that individual 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 capability 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 subsection (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 capability or asset or class of capabilities or assets;
(6) a remediation plan identifying corrective actions and any resulting issues or risks; and
(7) a description of how progress in the remediation plan will be measured and monitored.
(c) Substantial Variances in Costs or Schedule.—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 project or program of the Coast Guard, the Commandant shall include in the report a written determination, with a supporting explanation, of whether—
(1) the capability or asset or capability or asset class to be acquired under the project or program is essential to the accomplishment of Coast Guard missions;
(2) there are no alternatives to such capability or asset or capability or asset class that will provide 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 acquisition program is adequate to manage and control performance, cost, and schedule.
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2947, §575; amended Pub. L. 115–232, div. C, title XXXV, §3533(g), Aug. 13, 2018, 132 Stat. 2321; renumbered §1135, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 575 of this title as this section.
Subsec. (c). Pub. L. 115–232, in introductory provisions, substituted "determination, with a supporting explanation, of whether" for "certification, with a supporting explanation, that".
Nothing in this subchapter shall be construed as altering or diminishing in any way the statutory authority and responsibility of the Secretary of the department in which the Coast Guard is operating, or the Secretary's designee, to—
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2948, §576; renumbered §1136, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
Section 16 of the Office of Federal Procurement Policy Act, referred to in par. (2), is section 16 of Pub. L. 93–400, which was classified to section 414 of former Title 41, Public Contracts, and was repealed and reenacted as section 1702 of Title 41, Public Contracts, by Pub. L. 111–350, §§3, 7(b), Jan. 4, 2011, 124 Stat. 3677, 3855.
2018—Pub. L. 115–282 renumbered section 576 of this title as this section.
§1137. Contracting for major acquisitions programs
(a) In General.—In carrying out authorities provided to the Secretary to design, construct, accept, or otherwise acquire assets and systems under section 501(d), the Secretary, acting through the Commandant or the head of an integrated program office established for a major acquisition program, may enter into contracts for a major acquisition program.
(b) Authorized Methods.—Contracts entered into under subsection (a)—
(1) may be block buy contracts;
(2) may be incrementally funded;
(3) may include combined purchases, also known as economic order quantity purchases, of—
(A) materials and components; and
(B) long lead time materials; and
(4) as provided in section 2306b of title 10, may be multiyear contracts.
(c) Subject to Appropriations.—Any contract entered into under subsection (a) shall provide that any obligation of the United States to make a payment under the contract is subject to the availability of amounts specifically provided in advance for that purpose in subsequent appropriations Acts.
(Added Pub. L. 115–282, title III, §311(b), Dec. 4, 2018, 132 Stat. 4249.)
Internal Regulations and Policy
Pub. L. 115–282, title III, §311(e), Dec. 4, 2018, 132 Stat. 4249, provided that: "Not later than 180 days after the date of enactment of this Act [Dec. 4, 2018], the Secretary of the department in which the Coast Guard is operating shall establish the internal regulations and policies necessary to exercise the authorities provided under this section [enacting this section, amending section 501 of this title, enacting provisions set out as a note under section 1133 of this title, amending provisions formerly set out as a note under former section 573 of this title, and repealing provisions set out as notes under former sections 87 and 577 of this title], including the amendments made in this section."
2018—Pub. L. 115–282, title I, §108(c)(4), Dec. 4, 2018, 132 Stat. 4210, inserted subchapter III designation and heading.
§1151. Restriction on construction of vessels in foreign shipyards
(Added Pub. L. 100–448, §26(a), Sept. 28, 1988, 102 Stat. 1847, §665; renumbered §1151, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 665 of this title as this section.
§1152. Advance procurement funding
(a) In General.—With respect to any Coast Guard vessel for which amounts are appropriated and any amounts otherwise made available for vessels for the Coast Guard in any fiscal year, the Commandant may enter into a contract or place an order, in advance of a contract or order for construction of a vessel, for—
(1) materials, parts, components, and labor for the vessel;
(2) the advance construction of parts or components for the vessel;
(3) protection and storage of materials, parts, or components for the vessel; and
(4) production planning, design, and other related support services that reduce the overall procurement lead time of the vessel.
(b) Use of Materials, Parts, and Components Manufactured in the United States.—In entering into contracts and placing orders under subsection (a), the Commandant may give priority to persons that manufacture materials, parts, and components in the United States.
(Added Pub. L. 112–213, title II, §211(a), Dec. 20, 2012, 126 Stat. 1551, §577; amended Pub. L. 115–232, div. C, title XXXV, §3531(c)(7), Aug. 13, 2018, 132 Stat. 2320; renumbered §1152, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 577 of this title as this section.
Subsec. (a). Pub. L. 115–232 substituted "Commandant" for "Commandant of the Coast Guard" in introductory provisions.
Long Lead Time Materials and Vessel Production; Immediate Availability of Funding
Pub. L. 113–6, div. D, title V, §557, Mar. 26, 2013, 127 Stat. 377, provided that:
"(a) Notwithstanding Office of Management and Budget Circular A–11, funds made available in fiscal year 2013, or any fiscal year thereafter, under Department of Homeland Security, Coast Guard, &apos;Acquisition, Construction, and Improvements&apos; for—
"(1) long lead time materials, components, and designs of a vessel of the Coast Guard shall be immediately available and allotted to make a contract award notwithstanding the availability of funds for production, outfitting, post-delivery activities, and spare or repair parts; and
"(2) production of a vessel of the Coast Guard shall be immediately available and allotted to make a contract award notwithstanding the availability of funds for outfitting, post-delivery activities, and spare or repair parts.
"(b) The Secretary of Homeland Security shall develop fiscal policy that prescribes Coast Guard budgetary policies, procedures and technical direction necessary to comply with subsection (a) of this section and consistent with the Department of Defense Financial Management Regulation (Volume 2A, Chapter 1 C. Procedures for Full Funding) to include the costs associated with outfitting and post-delivery activities; spare and repair parts; and long lead time materials. The requirement set forth in this section shall not preclude the immediate availability or allotment of funds for fiscal year 2013, pursuant to subsection (a).
"(c) In this section—
"(1) the term &apos;long lead time items&apos; means components, parts, material, or effort which must be procured in advance of the production award in order to maintain the production schedule;
"(2) the term &apos;outfitting&apos; means procurement or installation of onboard repair parts, other secondary items, equipage, and recreation items; precommissioning crew support; general use consumables furnished to the shipbuilder; the fitting out activity to fill a vessel's initial allowances; and contractor-furnished spares; and
"(3) the term &apos;post-delivery activities&apos; means design, planning, Government-furnished material, and related labor for non-production and non-long lead time items contract activities and other work, including certifications, full operational capability activities and other equipment installation; spares, logistics, technical analysis, and support; correction of Government-responsible defects and deficiencies identified during builders trials, acceptance trials, and testing during the post-delivery period; costs of all work required to correct defects or deficiencies identified during the post-delivery period; and costs of all work required to correct trial card deficiencies on a vessel of a particular class, as well as on subsequent vessels of that class (whether or not delivered) until the corrective action for that cutter class is completed."
(Added Pub. L. 104–324, title III, §311(a), Oct. 19, 1996, 110 Stat. 3920, §96; amended Pub. L. 111–281, title II, §218, Oct. 15, 2010, 124 Stat. 2918; renumbered §1153, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 96 of this title as this section.
2010—Pub. L. 111–281 substituted "in the United States or Guam" for "in a State of the United States" and inserted "or Guam" after "outside the United States".
§1154. Procurement of buoy chain
(a) Except as provided in subsection (b), the Coast Guard may not procure buoy chain—
(1) that is not manufactured in the United States; or
(2) substantially all of the components of which are not produced or manufactured in the United States.
(b) The Coast Guard may procure buoy chain that is not manufactured in the United States if the Secretary determines that—
(1) the price of buoy chain manufactured in the United States is unreasonable; or
(2) emergency circumstances exist.
(Added Pub. L. 104–324, title XI, §1128(a), Oct. 19, 1996, 110 Stat. 3984, §97; renumbered §1154, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 97 of this title as this section.
§1155. Contract termination
(1) Notification.—Before terminating a procurement or acquisition contract with a total value of more than $1,000,000, the Commandant of the Coast Guard shall notify each vendor under such contract and require the vendor to maintain all work product related to the contract until the earlier of—
(A) not less than 1 year after the date of the notification; or
(B) the date the Commandant notifies the vendor that maintenance of such work product is no longer required.
(b) Work Product Defined.—In this section the term "work product"—
(1) means tangible and intangible items and information produced or possessed as a result of a contract referred to in subsection (a); and
(A) any completed end items;
(B) any uncompleted end items; and
(C) any property in the contractor's possession in which the United States Government has an interest.
(c) Penalty.—A vendor that fails to maintain work product as required under subsection (a) is liable to the United States for a civil penalty of not more than $25,000 for each day on which such work product is unavailable.
(1) In general.—Except as provided in paragraph (2), not later than 45 days after the end of each fiscal year the Commandant of the Coast Guard shall provide to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report detailing—
(A) all Coast Guard contracts with a total value of more than $1,000,000 that were terminated in the fiscal year;
(B) all vendors who were notified under subsection (a)(1) in the fiscal year, and the date of such notification;
(C) all criminal, administrative, and other investigations regarding any contract with a total value of more than $1,000,000 that were initiated by the Coast Guard in the fiscal year;
(D) all criminal, administrative, and other investigations regarding contracts with a total value of more than $1,000,000 that were completed by the Coast Guard in the fiscal year; and
(E) an estimate of costs incurred by the Coast Guard, including contract line items and termination costs, as a result of the requirements of this section.
(2) Limitation.—The Commandant is not required to provide a report under paragraph (1) for any fiscal year for which there is no responsive information as described in subparagraphs (A) through (E) of paragraph (1).
(Added Pub. L. 115–232, div. C, title XXXV, §3523(a), Aug. 13, 2018, 132 Stat. 2315, §657; renumbered §1155, Pub. L. 115–282, title I, §108(b), Dec. 4, 2018, 132 Stat. 4208.)
2018—Pub. L. 115–282 renumbered section 657 of this title as this section.
§1156. Limitation on unmanned aircraft systems
(a) In General.—During any fiscal year for which funds are appropriated for the design or construction of an Offshore Patrol Cutter, the Commandant—
(1) may not award a contract for design of an unmanned aircraft system for use by the Coast Guard; and
(2) may lease, acquire, or acquire the services of an unmanned aircraft system only if such system—
(A) has been part of a program of record of, procured by, or used by a Federal entity (or funds for research, development, test, and evaluation have been received from a Federal entity with regard to such system) before the date on which the Commandant leases, acquires, or acquires the services of the system; and
(B) is leased, acquired, or utilized by the Commandant through an agreement with a Federal entity, unless such an agreement is not practicable or would be less cost-effective than an independent contract action by the Coast Guard.
(b) Small Unmanned Aircraft Exemption.—Subsection (a)(2) does not apply to small unmanned aircraft.
(c) Definitions.—In this section, the terms "small unmanned aircraft" and "unmanned aircraft system" have the meanings given those terms in section 331 of the FAA Modernization and Reform Act of 2012 (49 U.S.C. 40101 note).1
(Added Pub. L. 115–282, title III, §304(b), Dec. 4, 2018, 132 Stat. 4244.)
Section 331 of the FAA Modernization and Reform Act of 2012, referred to in subsec. (c), is section 331 of Pub. L. 112–95, title III, Feb. 14, 2012, 126 Stat. 72, which is set out in a note under section 44802 of Title 49, Transportation.
2018—Pub. L. 115–282, title I, §108(c)(5), Dec. 4, 2018, 132 Stat. 4210, inserted subchapter IV designation and heading.
(1) Appropriate congressional committees.—The term "appropriate congressional committees" means the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.
(2) Chief acquisition officer.—The term "Chief Acquisition Officer" means the officer appointed under section 308 of this title.
(3) Customer of a major acquisition program.—The term "customer of a major acquisition program" means the operating field unit of the Coast Guard that will field the system or systems acquired under a major acquisition program.
(4) Level 1 acquisition.—The term "Level 1 acquisition" means—
(A) an acquisition by the Coast Guard—
(i) the estimated life-cycle costs of which exceed $1,000,000,000; or
(ii) the estimated total acquisition costs of which exceed $300,000,000; or
(B) any acquisition that the Chief Acquisition Officer of the Coast Guard determines to have a special interest—
(i) due to—
(I) the experimental or technically immature nature of the asset;
(II) the technological complexity of the asset;
(III) the commitment of resources; or
(IV) the nature of the capability or set of capabilities to be achieved; or
(ii) because such acquisition is a joint acquisition.
(5) Level 2 acquisition.—The term "Level 2 acquisition" means an acquisition by the Coast Guard—
(A) the estimated life-cycle costs of which are equal to or less than $1,000,000,000, but greater than $300,000,000; or
(B) the estimated total acquisition costs of which are equal to or less than $300,000,000, but greater than $100,000,000.
(6) Life-cycle cost.—The term "life-cycle cost" means all costs for development, procurement, construction, and operations and support for a particular capability or asset, without regard to funding source or management control.
(7) Major acquisition program.—The term "major acquisition program" means an ongoing acquisition undertaken by the Coast Guard with a life-cycle cost estimate greater than or equal to $300,000,000.
(8) Project or program manager defined.—The term "project or program manager" means an individual designated—
(A) to develop, produce, and deploy a new asset to meet identified operational requirements; and
(B) to manage cost, schedule, and performance of the acquisition, project, or program.
(9) Safety concern.—The term "safety concern" means any hazard associated with a capability or asset or a subsystem of a capability or asset that is likely to cause serious bodily injury or death to a typical Coast Guard user in testing, maintaining, repairing, or operating the capability, asset, or subsystem or any hazard associated with the capability, asset, or subsystem that is likely to cause major damage to the capability, asset, or subsystem during the course of its normal operation by a typical Coast Guard user.
(10) Developmental test and evaluation.—The term "developmental test and evaluation" means—
(A) the testing of a capability or asset and the subsystems of the capability or asset to determine whether they meet all contractual performance requirements, including technical performance requirements, supportability requirements, and interoperability requirements and related specifications; and
(B) the evaluation of the results of such testing.
(11) Operational test and evaluation.—The term "operational test and evaluation" means—
(A) the testing of a capability or asset and the subsystems 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 subsystems for use by typical Coast Guard users to conduct those missions for which the capability or asset and subsystems are intended to be used; and
(Added Pub. L. 111–281, title IV, §402(a), Oct. 15, 2010, 124 Stat. 2948, §581; amended Pub. L. 114–120, title II, §209(8), Feb. 8, 2016, 130 Stat. 41; Pub. L. 114–328, div. A, title VIII, §899(b)(1)(F), Dec. 23, 2016, 130 Stat. 2334; Pub. L. 115–232, div. C, title XXXV, §3531(c)(8), Aug. 13, 2018, 132 Stat. 2320; renumbered §1171 and amended Pub. L. 115–282, title I, §§108(b), 123(b)(2), Dec. 4, 2018, 132 Stat. 4208, 4240.)
2018—Pub. L. 115–282, §108(b), renumbered section 581 of this title as this section.
Par. (2). Pub. L. 115–282, §123(b)(2), substituted "section 308" for "section 56".
Pars. (4) to (12). Pub. L. 115–232 redesignated pars. (5) to (12) as (4) to (11), respectively, and struck out former par. (4) which defined "Commandant" as the Commandant of the Coast Guard.
2016—Par. (3). Pub. L. 114–328, §899(b)(1)(F)(ii), added par. (3). Former par. (3) redesignated (4).
Pars. (4), (5). Pub. L. 114–328, §899(b)(1)(F)(i), redesignated pars. (3) and (4) as (4) and (5), respectively. Former par. (5) redesignated (6).
Par. (5)(B). Pub. L. 114–120 substituted "$300,000,000," for "$300,000,0000,".
Pars. (6), (7). Pub. L. 114–328, §899(b)(1)(F)(i), redesignated pars. (5) and (6) as (6) and (7), respectively. Former par. (7) redesignated (9).
Par. (8). Pub. L. 114–328, §899(b)(1)(F)(iii), added par. (8). Former par. (8) redesignated (10).
Pars. (9) to (12). Pub. L. 114–328, §899(b)(1)(F)(i), redesignated pars. (7) to (10) as (9) to (12), respectively.