[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2722 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2722

 To restructure the Coast Guard Integrated Deepwater Program, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 14, 2007

 Mr. Cummings (for himself and Mr. Oberstar) introduced the following 
    bill; which was referred to the Committee on Transportation and 
                             Infrastructure

_______________________________________________________________________

                                 A BILL


 
 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 24 months after the 
        date of enactment of this Act.
            (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.
    (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.''.

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.
    (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. 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.
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