[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2722 Engrossed in House (EH)]
110th CONGRESS
1st Session
H. R. 2722
_______________________________________________________________________
AN ACT
To restructure the Coast Guard Integrated Deepwater Program, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Integrated Deepwater Program Reform
Act''.
SEC. 2. IMPLEMENTATION OF COAST GUARD INTEGRATED DEEPWATER ACQUISITION
PROGRAM.
(a) Use of Private Sector Entity as a Lead Systems Integrator.--
(1) In general.--Except as otherwise provided in this
subsection, the Secretary may not use a private sector entity
as a lead systems integrator for procurements under, or in
support of, the Deepwater Program beginning on the earlier of
October 1, 2011, or the date on which the Secretary certifies
in writing to the Committee on Transportation and
Infrastructure of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
Senate that the Coast Guard has available and can retain
sufficient contracting personnel and expertise within the Coast
Guard, through an arrangement with other Federal agencies, or
through contracts or other arrangements with private sector
entities, to perform the functions and responsibilities of the
lead system integrator in an efficient and cost-effective
manner.
(2) Completion of existing delivery orders and task
orders.--The Secretary may use a private sector entity as a
lead systems integrator to complete any delivery order or task
order under the Deepwater Program that was issued to the lead
systems integrator on or before the date of enactment of this
Act.
(3) Assistance of other federal agencies.--In any case in
which the Secretary is the systems integrator under the
Deepwater Program, the Secretary may obtain any type of
assistance the Secretary considers appropriate, with any
systems integration functions, from any Federal agency with
experience in systems integration involving maritime vessels
and aircraft.
(4) Assistance of private sector entities.--In any case in
which the Secretary is the systems integrator under the
Deepwater Program, the Secretary may, subject to the
availability of appropriations, obtain by grant, contract, or
cooperative agreement any type of assistance the Secretary
considers appropriate, with any systems integration functions,
from any private sector entity with experience in systems
integration involving maritime vessels and aircraft.
(b) Competition.--
(1) In general.--Except as otherwise provided in this
subsection, the Secretary shall use full and open competition
for each class of asset acquisitions under the Deepwater
Program for which an outside contractor is used, if the asset
is procured directly by the Coast Guard or by the Integrated
Coast Guard System acting under a contract with the Coast
Guard.
(2) Exception.--The Secretary may use a procurement method
that is less than full and open competition to procure an asset
under the Deepwater Program, if--
(A) the Secretary determines that such method is in
the best interests of the Federal Government; and
(B) by not later than 30 days before the date of
the award of a contract for the procurement, the
Secretary submits 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 explaining why such procurement
is in the best interests of the Federal Government.
(3) Limitation on application.--Paragraph (1) shall not
apply to a contract, subcontract, or task order that was issued
before the date of enactment of this Act, if there is no change
in the quantity of assets or the specific type of assets
procured.
(c) Required Contract Terms.--The Secretary shall include in each
contract, subcontract, and task order issued under the Deepwater
Program after the date of the enactment of this Act the following
provisions, as applicable:
(1) Technical reviews.--A requirement that the Secretary
shall conduct a technical review of all proposed designs,
design changes, and engineering changes, and a requirement that
the contractor must specifically address all engineering
concerns identified in the technical reviews, before any funds
may be obligated.
(2) Responsibility for technical requirements.--A
requirement that the Secretary shall maintain the authority to
establish, approve, and maintain technical requirements.
(3) Cost estimate of major changes.--A requirement that an
independent cost estimate must be prepared and approved by the
Secretary before the execution of any change order costing more
than 5 percent of the unit cost approved in the Deepwater
Program baseline in effect as of May 2007.
(4) Performance measurement.--A requirement that any
measurement of contractor and subcontractor performance must be
based on the status of all work performed, including the extent
to which the work performed met all cost, schedule, and mission
performance requirements outlined in the Deepwater Program
contract.
(5) Early operational assessment.--For the acquisition of
any cutter class for which an Early Operational Assessment has
not been developed--
(A) a requirement that the Secretary of the
Department in which the Coast Guard is operating shall
cause an Early Operational Assessment to be conducted
by the Department of the Navy after the development of
the preliminary design of the cutter and before the
conduct of the critical design review of the cutter;
and
(B) a requirement that the Coast Guard shall
develop a plan to address the findings presented in the
Early Operational Assessment.
(6) Transient electromagnetic pulse emanation.--For the
acquisition or upgrade of air, surface, or shore assets for
which compliance with transient electromagnetic pulse emanation
(TEMPEST) is a requirement, a provision specifying that the
standard for determining such compliance shall be the air,
surface, or shore asset standard then used by the Department of
the Navy.
(7) Offshore patrol cutter underway requirement.--For any
contract issued to acquire an Offshore Patrol Cutter,
provisions specifying the service life, fatigue life, days
underway in general Atlantic and North Pacific Sea conditions,
maximum range, and maximum speed the cutter shall be built to
achieve.
(8) Inspector general access.--A requirement that the
Department of Homeland Security's Office of the Inspector
General shall have access to all records maintained by all
contractors working on the Deepwater Program, and shall have
the right to privately interview any contractor personnel.
(d) Life Cycle Cost Estimate.--
(1) In general.--The Secretary shall develop an
authoritative life cycle cost estimate for the Deepwater
Program.
(2) Contents.--The life cycle cost estimate shall include
asset acquisition and logistics support decisions and planned
operational tempo and locations as of the date of enactment of
this Act.
(3) Submittal.--The Secretary shall--
(A) submit the life cycle cost estimate to the
Committee on Transportation and Infrastructure of the
House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate within 4
months after the date of enactment of this Act; and
(B) submit updates of the life cycle cost estimate
to such Committees annually.
(e) Contract Officers.--The Secretary shall assign a separate
contract officer for each class of cutter and aircraft acquired or
rehabilitated under the Deepwater Program, including the National
Security Cutter, the Offshore Patrol Cutter, the Fast Response Cutter
A, the Fast Response Cutter B, maritime patrol aircraft, the aircraft
HC-130J, the helicopter HH-65, the helicopter HH-60, and the vertical
unmanned aerial vehicle.
(f) Technology Risk Report.--The Secretary 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 identifying the technology risks
and level of maturity for major technologies used on each class of
asset acquisitions under the Deepwater Program, including the Fast
Response Cutter A (FRC-A), the Fast Response Cutter B (FRC-B), the
Offshore Patrol Cutter (OPC), and the Vertical Unmanned Aerial Vehicle
(VUAV), not later than 90 days before the date of award of a contract
for such an acquisition.
(g) Submission of Assessment Results and Plans to Congress.--The
Commandant of the Coast Guard 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--
(1) the results of each Early Operational Assessment
conducted pursuant to subsection (c)(5)(A) and the plan
approved by the Commandant pursuant to subsection (c)(5)(B) for
addressing the findings of such assessment, within 30 days
after the Commandant approves the plan; and
(2) a report describing how the recommendations of each
Early Operational Assessment conducted pursuant to subsection
(c)(5)(A) on the first in class of a new cutter class have been
addressed in the design on which construction is to begin,
within 30 days before initiation of construction.
SEC. 3. CHIEF ACQUISITION OFFICER.
(a) In General.--Chapter 3 of title 14, United States Code, is
amended by adding at the end the following:
``Sec. 55. Chief Acquisition Officer
``(a) Establishment of Agency Chief Acquisition Officer.--The
Commandant shall appoint or designate a career reserved employee as
Chief Acquisition Officer for the Coast Guard, who shall--
``(1) have acquisition management as that official's
primary duty; and
``(2) report directly to the Commandant to advise and
assist the Commandant to ensure that the mission of the Coast
Guard is achieved through the management of the Coast Guard's
acquisition activities.
``(b) Authority and Functions of the Chief Acquisition Officer.--
The functions of the Chief Acquisition Officer shall include--
``(1) monitoring the performance of acquisition activities
and acquisition programs of the Coast Guard, evaluating the
performance of those programs on the basis of applicable
performance measurements, and advising the Commandant regarding
the appropriate business strategy to achieve the mission of the
Coast Guard;
``(2) increasing the use of full and open competition in
the acquisition of property and services by the Coast Guard by
establishing policies, procedures, and practices that ensure
that the Coast Guard receives a sufficient number of sealed
bids or competitive proposals from responsible sources to
fulfill the Government's requirements (including performance
and delivery schedules) at the lowest cost or best value
considering the nature of the property or service procured;
``(3) ensuring the use of detailed performance
specifications in instances in which performance-based
contracting is used;
``(4) making acquisition decisions consistent with all
applicable laws and establishing clear lines of authority,
accountability, and responsibility for acquisition
decisionmaking within the Coast Guard;
``(5) managing the direction of acquisition policy for the
Coast Guard, including implementation of the unique acquisition
policies, regulations, and standards of the Coast Guard;
``(6) developing and maintaining an acquisition career
management program in the Coast Guard to ensure that there is
an adequate professional workforce; and
``(7) as part of the strategic planning and performance
evaluation process required under section 306 of title 5 and
sections 1105(a)(28), 1115, 1116, and 9703 of title 31--
``(A) assessing the requirements established for
Coast Guard personnel regarding knowledge and skill in
acquisition resources management and the adequacy of
such requirements for facilitating the achievement of
the performance goals established for acquisition
management;
``(B) in order to rectify any deficiency in meeting
such requirements, developing strategies and specific
plans for hiring, training, and professional
development; and
``(C) reporting to the Commandant on the progress
made in improving acquisition management capability.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following:
``55. Chief Acquisition Officer.''.
(c) Special Rate Supplements.--
(1) Requirement to establish.--Not later than 1 year after
the date of enactment of this Act and in accordance with part
9701.333 of title 5, Code of Federal Regulations, the
Commandant of the Coast Guard shall establish special rate
supplements that provide higher pay levels for employees
necessary to carry out the amendment made by this section.
(2) Subject to appropriations.--The requirement under
paragraph (1) is subject to the availability of appropriations.
SEC. 4. TESTING AND CERTIFICATION.
(a) In General.--The Secretary shall--
(1) cause each cutter, other than a National Security
Cutter, acquired by the Coast Guard and delivered after the
date of enactment of this Act to be classed by the American
Bureau of Shipping, before acceptance of delivery;
(2) cause the design and construction of each National
Security Cutter, other than National Security Cutter 1 and 2,
to be certified by an independent third party with expertise in
vessel design and construction certification to be able to meet
a 185-underway-day requirement under general Atlantic and North
Pacific sea conditions for a period of at least 30 years;
(3) cause all electronics on all aircraft, surface, and
shore assets that require TEMPEST certification and that are
delivered after the date of enactment of this Act to be tested
and certified 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 certification; and
(4) cause all aircraft and aircraft engines acquired by the
Coast Guard and delivered after the date of enactment of this
Act to be certified for airworthiness by an independent third
party with expertise in aircraft and aircraft engine
certification, before acceptance of delivery.
(b) First in Class of a Major Asset Acquisition.--The Secretary
shall cause the first in class of a major asset acquisition of a cutter
or an aircraft to be subjected to an assessment of operational
capability conducted by the Secretary of the Navy.
(c) Final Arbiter.--The Secretary shall be the final arbiter of all
technical disputes regarding designs and acquisitions of vessels and
aircraft for the Coast Guard.
SEC. 5. NATIONAL SECURITY CUTTERS.
(a) National Security Cutters 1 and 2.--
(1) Report on options under consideration.--The Secretary
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) within 120 days after the date of enactment of
this Act, a report describing in detail the cost
increases that have been experienced on National
Security Cutters 1 and 2 since the date of the issuance
of the task orders for construction of those cutters
and explaining the causes of these cost increases; and
(B) within 180 days after the date of enactment of
this Act, a report on the options that the Coast Guard
is considering to strengthen the hulls of National
Security Cutter 1 and National Security Cutter 2,
including--
(i) the costs of each of the options under
consideration;
(ii) a schedule for when the hull
strengthening repairs are anticipated to be
performed; and
(iii) the impact that the weight likely to
be added to each the cutter by each option will
have on the cutter's ability to meet both the
original performance requirements included in
the Deepwater Program contract and the
performance requirements created by contract
Amendment Modification 00042 dated February 7,
2007.
(2) Design assessment.--Not later than 30 days before the
Coast Guard signs any contract, delivery order, or task order
to strengthen the hull of either of National Security Cutter 1
or 2 to resolve the structural design and performance issues
identified in the Department of Homeland Security Inspector
General's report OIG-07-23 dated January 2007, the Secretary
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 all results of an assessment of the proposed hull
strengthening design conducted by the Naval Surface Warfare
Center, Carderock Division, including a description in detail
of the extent to which the hull strengthening measures to be
implemented on those cutters will enable the cutters to meet a
185-underway-day requirement under general Atlantic and North
Pacific sea conditions for a period of at least 30 years.
(b) National Security Cutters 3 Through 8.--Not later than 30 days
before the Coast Guard signs any contract, delivery order, or task
order authorizing construction of National Security Cutters 3 through
8, the Secretary 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 all results of an
assessment of the proposed designs to resolve the structural design,
safety, and performance issues identified by the Department of Homeland
Security Office of Inspector General report OIG-07-23 for the hulls of
those cutters conducted by the Naval Surface Warfare Center, Carderock
Division, including a description in detail of the extent to which such
designs will enable the cutters to meet a 185-underway-day requirement
under general Atlantic and North Pacific sea conditions.
SEC. 6. MISCELLANEOUS REPORTS.
(a) In General.--The Secretary shall submit the following reports
to the Committee on Transportation and Infrastructure of the House of
Representatives and the Committee on Commerce, Science, and
Transportation of the Senate:
(1) Within 4 months after the date of enactment of this
Act, a justification for why 8 National Security Cutters are
required to meet the operational needs of the Coast Guard,
including--
(A) how many days per year each National Security
Cutter will be underway at sea;
(B) where each National Security Cutter will be
home ported;
(C) the amount of funding that will be required to
establish home port operations for each National
Security Cutter;
(D) the extent to which 8 National Security Cutters
deployed without vertical unmanned aerial vehicles
(VUAV) will meet or exceed the mission capability
(including surveillance capacity) of the 12 Hamilton-
class high endurance cutters that the National Security
Cutters will replace;
(E) the business case in support of constructing
National Security Cutters 3 through 8, including a
cost-benefit analysis; and
(F) an analysis of how many Offshore Patrol Cutters
would be required to provide the patrol coverage
provided by a National Security Cutter.
(2) Within 4 months after the date of enactment of this
Act, a report on--
(A) the impact that deployment of a National
Security Cutter and other cutter assets without the
vertical unmanned aerial vehicle (VUAV) will have on
the amount of patrol coverage that will be able to be
provided during missions conducted by the National
Security Cutter and all other cutters planned to be
equipped with a VUAV;
(B) how the coverage gap will be made up;
(C) an update on the current status of the
development of the VUAV; and
(D) the timeline detailing the major milestones to
be achieved during development of the VUAV and
identifying the delivery date for the first and last
VUAV.
(3) Within 30 days after the elevation to flag-level for
resolution of any design or other dispute regarding the
Deepwater Program contract or an item to be procured under that
contract, including a detailed description of the issue and the
rationale underlying the decision taken by the flag officer to
resolve the issue.
(4) Within 4 months after the date of enactment of this
Act, a report detailing the total number of change orders that
have been created by the Coast Guard under the Deepwater
Program before the date of enactment of this Act, the total
cost of these change orders, and their impact on the Deepwater
Program schedule.
(5) Within 180 days after the date of enactment of this
Act, a report detailing the technology risks and level of
maturity for major technologies used on maritime patrol
aircraft, the HC-130J, and the National Security Cutter.
(6) Not less than 60 days before signing a contract to
acquire any vessel or aircraft, a report comparing the cost of
purchasing that vessel or aircraft directly from the
manufacturer or shipyard with the cost of procuring it through
the Integrated Coast Guard System.
(7) Within 30 days after the Program Executive Officer of
the Deepwater Program becomes aware of a likely cost overrun
exceeding 5 percent of the overall asset acquisition contract
cost or schedule delay exceeding 5 percent of the estimated
asset construction period under the Deepwater Program, a report
by the Commandant containing a description of the cost overrun
or delay, an explanation of the overrun or delay, a description
of Coast Guard's response, and a description of significant
delays in the procurement schedule likely to be caused by the
overrun or delay.
(8) Within 90 days after the date of enactment of this Act,
articulation of a doctrine and description of an anticipated
implementation of a plan for management of acquisitions
programs, financial management (including earned value
management and cost estimating), engineering and logistics
management, and contract management, that includes--
(A) a description of how the Coast Guard will
cultivate among uniformed personnel expertise in
acquisitions management and financial management;
(B) a description of the processes that will be
followed to draft and ensure technical review of
procurement packages, including statements of work, for
any class of assets acquired by the Coast Guard;
(C) a description of how the Coast Guard will
conduct an independent cost estimating process,
including independently developing cost estimates for
major change orders; and
(D) a description of how Coast Guard will
strengthen the management of change orders.
(9) Within 4 months after the date of enactment of this
Act, a report on the development of a new acquisitions office
within the Coast Guard describing the specific staffing
structure for that directorate, including--
(A) identification of all managerial positions
proposed as part of the office, the functions that each
managerial position will fill, and the number of
employees each manager will supervise; and
(B) a formal organizational chart and
identification of when managerial positions are to be
filled.
(10) Ninety days prior to the issuance of a Request for
Proposals for construction of an Offshore Patrol Cutter, a
report detailing the service life, fatigue life, maximum range,
maximum speed, and number of days underway under general
Atlantic and North Pacific Sea conditions the cutter shall be
built to achieve.
(11) The Secretary shall report annually on the percentage
of the total amount of funds expended on procurements under the
Deepwater Program that has been paid to each of small
businesses and minority-owned businesses.
(12) Within 120 days after the date of enactment of this
Act, a report on any Coast Guard mission performance gap due to
the removal of Deepwater Program assets from service. The
report shall include the following:
(A) A description of the mission performance gap
detailing the geographic regions and Coast Guard
capabilities affected.
(B) An analysis of factors affecting the mission
performance gap that are unrelated to the Deepwater
Program, including deployment of Coast Guard assets
overseas and continuous vessel shortages.
(C) A description of measures being taken in the
near term to fill the mission performance gap,
including what those measures are and when they will be
implemented.
(D) A description of measures being taken in the
long term to fill the mission performance gap,
including what those measures are and when they will be
implemented.
(E) A description of the potential alternatives to
fill the mission performance gap, including any
acquisition or lease considered and the reasons they
were not pursued.
(b) Report Required on Acceptance of Delivery of Incomplete
Asset.--
(1) In general.--If the Secretary accepts delivery of an
asset after the date of enactment of this Act for which a
contractually required certification cannot be achieved within
30 days after the date of delivery or with any system that is
not fully functional for the mission for which it was intended,
the Secretary shall submit to the Committee on Transportation
and Infrastructure of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the
United States Senate within 30 days after accepting delivery of
the asset a report explaining why acceptance of the asset in
such a condition is in the best interests of the United States
Government.
(2) Contents.--The report shall--
(A) specify the systems that are not able to
achieve contractually required certifications within 30
days after the date of delivery and the systems that
are not fully functional at the time of delivery for
the missions for which they were intended;
(B) identify milestones for the completion of
required certifications and to make all systems fully
functional; and
(C) identify when the milestones will be completed,
who will complete them, and the cost to complete them.
SEC. 7. USE OF THE NAVAL SEA SYSTEMS COMMAND, THE NAVAL AIR SYSTEMS
COMMAND, AND THE SPACE AND NAVAL WARFARE SYSTEMS COMMAND
TO ASSIST THE COAST GUARD IN EXERCISING TECHNICAL
AUTHORITY FOR THE DEEPWATER PROGRAM AND OTHER COAST GUARD
ACQUISITION PROGRAMS.
(a) Findings.--Congress finds that the Coast Guard's use of the
technical, contractual, and program management oversight expertise of
the Department of the Navy in ship and aircraft production complements
and augments the Coast Guard's organic expertise as it procures assets
for the Deepwater Program.
(b) Inter-Service Technical Assistance.--The Secretary may enter
into a memorandum of understanding or a memorandum of agreement with
the Secretary of the Navy to provide for the use of the Navy Systems
Commands to assist the Coast Guard with the oversight of Coast Guard
major acquisition programs. Such memorandum of understanding or
memorandum of agreement shall, at a minimum provide for--
(1) the exchange of technical assistance and support that
the Coast Guard Chief Engineer and the Coast Guard Chief
Information Officer, as Coast Guard Technical Authorities, 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 Navy Systems Commands to
facilitate the development of organic capabilities in the Coast
Guard.
(c) Technical Authorities.--The Coast Guard Chief Engineer, Chief
Information Officer, and Chief Acquisition Officer shall adopt, to the
extent practicable, procedures that are similar to those used by the
Navy Senior Acquisition Official to ensure the Coast Guard Technical
Authorities, or designated Technical Warrant Holders, approve all
technical requirements.
(d) Coordination.--The Secretary, acting through the Commandant of
the Coast Guard, may coordinate with the Secretary of the Navy, acting
through the Chief of Naval Operations, to develop processes by which
the assistance will be requested from the Navy Systems Commands and
provided to the Coast Guard.
(e) Report.--Not later than 120 days after the date of enactment of
this Act and every twelve months thereafter, the Commandant of the
Coast Guard shall report to the Committee on Transportation and
Infrastructure of the House of Representatives and the Committee on
Commerce, Science, and Transportation of the Senate on the activities
undertaken pursuant to such memorandum of understanding or memorandum
of agreement.
SEC. 8. DEFINITIONS.
In this Act:
(1) Deepwater program.--The term ``Deepwater Program''
means the Integrated Deepwater Systems Program described by the
Coast Guard in its report to Congress entitled ``Revised
Deepwater Implementation Plan 2005'', dated March 25, 2005. The
Deepwater Program primarily involves the procurement of cutter
and aviation assets that operate more than 50 miles offshore.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the department in which the Coast Guard is operating.
Passed the House of Representatives July 31, 2007.
Attest:
Clerk.
110th CONGRESS
1st Session
H. R. 2722
_______________________________________________________________________
AN ACT
To restructure the Coast Guard Integrated Deepwater Program, and for
other purposes.