[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6999 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6999

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 23, 2008

 Mr. Cummings (for himself, Mr. Oberstar, Mr. Bishop of New York, and 
 Mr. Thompson of Mississippi) 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 of 2008''.

SEC. 2. PROCUREMENT STRUCTURE.

    (a) In General.--
            (1) Use of lead systems integrator.--Except as provided in 
        subsection (b), the Secretary may not use a private sector 
        entity as a lead systems integrator for acquisitions under, or 
        in support of, the Integrated Deepwater Program after the end 
        of the 90-day period beginning on the date of enactment of this 
        Act.
            (2) Full and open competition.--The Secretary and the lead 
        systems integrator for the Integrated Deepwater Program shall 
        utilize full and open competition for any acquisition for which 
        an outside contractor is used under, or in support of, the 
        Integrated Deepwater Program after the date of enactment of 
        this Act, unless otherwise excepted in accordance with the 
        Competition in Contracting Act of 1984 and the Federal 
        Acquisition Regulation.
    (b) Exceptions.--
            (1) Completion of acquisitions by lead systems 
        integrator.--Notwithstanding subsection (a), the Secretary may 
        use a private sector entity as a lead systems integrator for 
        the Coast Guard--
                    (A) to complete any delivery order or task order 
                that was issued to the lead systems integrator on or 
                before the date that is 90 days after the date of 
                enactment of this Act without any change in the 
                quantity of assets or the specific type of assets 
                covered by the order;
                    (B) for acquisitions after the date that is 90 days 
                after the date of enactment of this Act of, or in 
                support of, the HC-130J aircraft, the HH-65 aircraft, 
                and the C4ISR system if the requirements of subsection 
                (c) are met with respect to such acquisitions;
                    (C) for acquisitions after the date that is 90 days 
                after the date of enactment of this Act of, or in 
                support of, National Security Cutters or Maritime 
                Patrol Aircraft under contract or order for 
                construction as of the date that is 90 days after the 
                date of enactment of this Act, if the requirements of 
                subsection (c) are met with respect to such 
                acquisitions; and
                    (D) for the acquisition, or in support, of 
                additional National Security Cutters or Maritime Patrol 
                Aircraft if the Secretary determines that--
                            (i) the acquisition is in accordance with 
                        the Competition in Contracting Act of 1984 and 
                        the Federal Acquisition Regulation;
                            (ii) the acquisition and the use of a 
                        private sector entity as a lead systems 
                        integrator for the acquisition is in the best 
                        interest of the Federal Government; and
                            (iii) the requirements of subsection (c) 
                        are met with respect to such acquisition.
            (2) Awards to tier 1 subcontractors.--The Secretary may 
        award to any Tier 1 subcontractor or subcontractor below the 
        Tier 1 level any acquisition that the Secretary could award to 
        a lead systems integrator under paragraph (1).
            (3) Report on decision-making process.--If the Secretary 
        determines under paragraph (1)(B), (1)(C), or (1)(D) that the 
        Coast Guard will use a private sector lead systems integrator 
        for an acquisition, the Secretary shall notify in writing the 
        appropriate congressional committees of the Secretary's 
        determination and shall provide a detailed rationale for the 
        determination, at least 30 days before the award of a contract, 
        delivery order, or task order using a private sector lead 
        systems integrator, including a comparison of the cost of the 
        acquisition through the private sector lead systems integrator 
        with the expected cost if the acquisition were awarded directly 
        to the manufacturer or shipyard.
    (c) Limitation on Lead Systems Integrators.--Neither an entity 
performing lead systems integrator functions for an acquisition under, 
or in support of, the Integrated Deepwater Program, nor a Tier 1 
subcontractor, for any acquisition described in subsection (b)(1)(B), 
(b)(1)(C), or (b)(1)(D) may have a financial interest in a 
subcontractor below the tier 1 subcontractor level unless--
            (1) the subcontractor was selected by the Secretary through 
        full and open competition for such procurement;
            (2) the procurement was awarded by the lead systems 
        integrator or a subcontractor through full and open 
        competition;
            (3) the procurement was awarded by a subcontractor through 
        a process over which the lead systems integrator or a Tier 1 
        subcontractor exercised no control; or
            (4) the Secretary has determined that the procurement was 
        awarded in a manner consistent with the Competition in 
        Contracting Act of 1984 and the Federal Acquisition Regulation.
    (d) Rule of Construction.--The limitation in subsection (b)(1)(A) 
on the quantity and specific type of assets to which subsection (b) 
applies shall not be construed to apply to the modification of the 
number or type of any subsystems or other components of a vessel or 
aircraft described in subsection (b)(1)(B), (C), or (D).
    (e) Termination Date for Exceptions.--Notwithstanding subsection 
(b), the Secretary may not use a private sector entity as a lead 
systems integrator for acquisitions under, or in support of, the 
Integrated Deepwater Program after the earlier of--
            (1) September 30, 2011; or
            (2) the date on which the Secretary certifies in writing to 
        the appropriate congressional committees 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.

SEC. 3. REQUIRED CONTRACT TERMS.

    (a) In General.--The Secretary shall ensure that any contract, 
delivery order, or task order for an acquisition under, or in support 
of, the Integrated Deepwater Program executed by the Secretary after 
the date of enactment of this Act--
            (1) provides that all certifications for Integrated 
        Deepwater Program procurements will be conducted by the 
        Secretary or an independent third party, and that self-
        certification by the contractor or subcontractor is not 
        allowed;
            (2) provides that the Commandant shall conduct a technical 
        review of all proposed designs, design changes, and engineering 
        changes and requires that the contractor address all design and 
        engineering concerns identified in the technical reviews;
            (3) requires that the Commandant shall maintain the 
        authority to establish, approve, and maintain technical 
        requirements;
            (4) 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 cost, schedule, and mission performance requirements;
            (5) specifies that, for the acquisition or upgrade of air, 
        surface, or shore assets for which compliance with TEMPEST 
        certification is a requirement, the standard for determining 
        such compliance will be the air, surface, or shore asset 
        standard then used by the Department of the Navy for that type 
        of asset; and
            (6) for any contract issued 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 Contract Provisions.--The Secretary shall ensure 
that any contract, delivery order, or task order for acquisition under, 
or in support of, the Integrated Deepwater Program executed by the 
Secretary after the date of enactment of this Act does not include--
            (1) provisions that commit the Secretary without express 
        written approval by the Secretary; or
            (2) any provision allowing for equitable adjustment that 
        differs from the Federal Acquisition Regulation.
    (c) Extension of Program.--Any contract, contract modification, or 
award term extending the existing Integrated Deepwater Program contract 
term, as signed in May 2006 and modified in June 2007--
            (1) shall not include any minimum requirements for the 
        purchase of a given or determinable number of specific assets; 
        and
            (2) shall be reviewed by the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics through the Defense 
        Acquisition University 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.

SEC. 4. TESTING AND CERTIFICATION.

    (a) Early Operational Assessment.--
            (1) For any major asset type acquired for the Coast Guard 
        after the date of enactment of this Act other than the National 
        Security Cutter and the Maritime Patrol Aircraft, the Secretary 
        shall cause an early operational assessment to be completed on 
        the design for that asset type.
            (2) The early operational assessment shall be conducted by 
        an independent third party with relevant expertise in 
        conducting early operational assessments on the asset type for 
        which the assessment is being performed or by the Coast Guard 
        acting in collaboration with an independent third party with 
        relevant expertise in conducting early operational assessments 
        on the asset type for which the assessment is being performed.
            (3) The result of this assessment shall be submitted to the 
        appropriate congressional committees at least 90 days prior to 
        the initiation of any construction activity utilizing the 
        proposed design.
            (4) The Secretary shall also submit a report describing the 
        steps taken to mitigate the risks identified by the early 
        operational assessment conducted under this section in the 
        design on which construction is to begin at least 30 days prior 
        to the initiation of any construction utilizing the proposed 
        design.
    (b) Assessment of Operational Capability.--
            (1) The Secretary shall cause the first in class of a major 
        asset acquisition of a cutter or an aircraft by the Coast Guard 
        to be subjected to an assessment of operational capability 
        conducted by an independent third party with relevant expertise 
        in the asset type or by the Coast Guard in collaboration with 
        an independent third party with relevant expertise in the asset 
        type.
            (2) The result of the assessment conducted under this 
        subsection shall be submitted to the appropriate congressional 
        committees at least 45 days prior to acceptance of the asset.
    (c) Cutter Classification.--The Secretary shall cause each cutter, 
other than a National Security Cutter, acquired by the Coast Guard and 
delivered after the date of enactment of this Act to be classed by the 
American Bureau of Shipping, before acceptance of delivery.
    (d) Tempest Testing.--The Secretary shall 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 in accordance with TEMPEST standards and 
communication security (COMSEC) standards by an independent third party 
that is authorized by the Federal Government to perform such testing 
and certify that the asset meets all applicable TEMPEST requirements.
    (e) National Security Cutter.--The Secretary shall 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.
    (f) Aircraft Airworthiness.--The Secretary shall 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.
    (g) Certifications.--
            (1) After the date of enactment of this Act, a contract, 
        delivery order, or task order exceeding $10,000,000 for an 
        acquisition under, or in support of, the Coast Guard's 
        Integrated Deepwater Program may not be executed by the Coast 
        Guard until the Secretary certifies that--
                    (A) appropriate market research has been conducted 
                prior to technology development to reduce duplication 
                of existing technology and products;
                    (B) the technology has been demonstrated to the 
                maximum extent practicable in a relevant environment;
                    (C) the technology demonstrates a high likelihood 
                of accomplishing its intended mission;
                    (D) funding is available to execute the contract, 
                delivery order, or task order; and
                    (E) the technology complies with all relevant 
                policies, regulations, and directives of the Coast 
                Guard.
            (2) The Secretary shall transmit a copy of each 
        certification required under subsection (g) to the appropriate 
        congressional committees within 30 days after the completion of 
        the certification.
    (h) Limitation.--Nothing in this section shall prevent the 
Secretary from executing contracts or issuing delivery orders or task 
orders for research and development or technology demonstrations under, 
or in support of, the Integrated Deepwater Program.

SEC. 5. NATIONAL SECURITY CUTTER.

    Not later than 90 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 appropriate congressional committees all results of 
an assessment of the proposed hull strengthening design conducted by 
the Coast Guard, in conjunction with the Naval Surface Warfare Center, 
Carderock Division, including--
            (1) 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 contract and performance 
        requirements;
            (2) a cost benefit analysis of the proposed hull 
        strengthening measures for National Security Cutters 1 and 2; 
        and
            (3) a description of any operational restrictions that 
        would have to be applied to either National Security Cutters 1 
        or 2 if the proposed hull strengthening measures were not 
        implemented on either cutter.

SEC. 6. IMPROVEMENTS IN COAST GUARD MANAGEMENT.

    (a) 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.
    (b) Deepwater Technical Authority.--The Commandant shall maintain 
or designate the technical authority to establish, approve, and 
maintain technical requirements for the Integrated Deepwater Program. 
Any such designation shall be given in writing and may not be delegated 
to the authority of the Chief Acquisition Officer established by 
section 55 of title 14, United States Code.
    (c) Ensuring Adequate Personnel.--The Secretary shall ensure that 
sufficient contracting officers, contracting specialists, and technical 
and financial management specialists (including earned value experts) 
are available to execute each contract issued under the Integrated 
Deepwater Program.
    (d) Acquisitions Workforce Policy.--The Secretary shall review all 
policies established for the Coast Guard's acquisitions workforce to 
ensure that they are designed to provide for the selection of the best 
qualified individual for a position, consistent with other applicable 
law, and promote the establishment and maintenance of a balanced 
workforce in which women and members of racial and ethnic minority 
groups are appropriately represented in Government service.
    (e) Career Paths.--The Secretary shall ensure that appropriate 
career paths for civilian and military personnel who wish to pursue 
careers in acquisitions are identified in terms of the education, 
training, experience, and assignments necessary for career progression 
of civilians and members of the Coast Guard to the most senior 
acquisitions positions. The Secretary shall make available published 
information on such career paths.
    (f) Balanced Workforce Policy.--In the development of acquisition 
workforce policies with respect to any civilian employees or applicants 
for employment, the Secretary shall, consistent with the merit system 
principles set out in paragraphs (1) and (2) of section 2301(b) of 
title 5, United States Code, promote a balanced workforce in which 
women and members of racial and ethnic minority groups are 
appropriately represented in Government service.
    (g) Guidance on Tenure and Accountability of Program Managers.--
            (1) Issuance of guidance.--Not later than one year after 
        the date of the enactment of this Act, the Secretary shall 
        issue guidance for major systems acquisition programs to 
        address the qualifications, resources, responsibilities, 
        tenure, and accountability of program managers for the 
        management of major systems acquisitions. The guidance issued 
        pursuant to this subsection shall address, at a minimum--
                    (A) the qualifications that shall be required of 
                program managers, including the number of years of 
                acquisitions experience and the professional training 
                levels to be required of those appointed to program 
                management positions;
                    (B) authorities available to the program manager, 
                including, to the extent appropriate, the authority to 
                object to the addition of new program requirements that 
                would be inconsistent with the parameters established 
                for an acquisitions program; and
                    (C) the extent to which a program manager who 
                initiates a new program will continue in management of 
                that program without interruption until the delivery of 
                the first production units of the program.
            (2) Strategy.--
                    (A) In general.--Not later than 18 months after the 
                date of enactment of this Act, the Secretary shall 
                develop a comprehensive strategy for enhancing the role 
                of Coast Guard program managers in developing and 
                carrying out acquisition programs.
                    (B) Matters to be addressed.--The strategy required 
                by this section shall address, at a minimum--
                            (i) the creation of a specific career path 
                        and career opportunities for program managers, 
                        including the rotational assignments that will 
                        be provided to program managers;
                            (ii) the provision of enhanced training and 
                        educational opportunities for program managers;
                            (iii) the provision of mentoring support to 
                        current and future program managers by 
                        experienced senior executives and program 
                        managers within the Coast Guard, including 
                        through rotational assignments to the 
                        Department of Defense;
                            (iv) the methods by which the Coast Guard 
                        will collect and disseminate best practices and 
                        lessons learned on systems acquisitions to 
                        enhance program management throughout the Coast 
                        Guard;
                            (v) the templates and tools that will be 
                        used to support improved data gathering and 
                        analysis for program management and oversight 
                        purposes, including the metrics that will be 
                        utilized to assess the effectiveness of Coast 
                        Guard program managers in managing systems 
                        acquisitions efforts;
                            (vi) a description in detail of how the 
                        Coast Guard will promote a balanced workforce 
                        in which women and members of racial and ethnic 
                        minority groups are appropriately represented 
                        in Government service; and
                            (vii) the methods by which the 
                        accountability of program managers for the 
                        results of acquisition programs will be 
                        increased.
            (3) Report by comptroller general.--Not later than 2 years 
        after the date of enactment of this Act, the Comptroller 
        General shall submit to the appropriate congressional 
        committees a report on the actions taken by the Secretary to 
        implement the requirements of this subsection, including the 
        strategies that are required to be developed by this 
        subsection.

SEC. 7. 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.--There 
shall be in the Coast Guard a Chief Acquisitions Officer selected by 
the Commandant who shall be a Rear Admiral or civilian from the Senior 
Executive Service (career reserved) and who meets the qualifications 
set forth under subsection (b). The Chief Acquisitions Officer shall 
serve at the Assistant Commandant level and have acquisition management 
as that individual's primary duty.
    ``(b) Qualifications.--The Chief Acquisition Officer shall be a 
certified acquisition professional with a program manager level III 
certification and must have at least 10 years experience in an 
acquisition position.
    ``(c) Authority and Functions of the Chief Acquisition Officer.--
The functions of the Chief Acquisition Officer shall include--
            ``(1) monitoring the performance of programs on the basis 
        of applicable performance measurements and advising the 
        Commandant, through the Vice Commandant of the Coast Guard, 
        regarding the appropriate business strategy to achieve the 
        missions 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) making acquisition decisions in concurrence with the 
        technical authority of the Coast Guard, as designated by the 
        Commandant, and consistent with all other applicable laws and 
        decisions establishing procedures within the Coast Guard;
            ``(4) ensuring the use of detailed performance 
        specifications in instances in which performance based 
        contracting is used;
            ``(5) making acquisition decisions consistent with all 
        applicable laws and decision making procedures within the Coast 
        Guard;
            ``(6) managing the direction of acquisition policy for the 
        Coast Guard, including implementation of the unique acquisition 
        policies, regulations, and standards of the Coast Guard;
            ``(7) developing and maintaining an acquisition career 
        management program in the Coast Guard to ensure that there is 
        an adequate professional work force; and
            ``(8) as part of the strategic planning and performance 
        evaluation process required under section 306 of title 5 and 
        sections 1105(a)(28), 1115, 1116, 10 and 9703 of title 31--
                    ``(A) assessing the requirements established for 
                Coast Guard personnel regarding knowledge and skill in 
                acquisition resources and management and the adequacy 
                of such requirements for facilitating the achievement 
                of the performance goals established for acquisition 
                management;
                    ``(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, through the Vice 
                Commandant, on the progress made in improving 
                acquisition management capability.''.
    (b) Application of Qualification Requirement.--Section 55(b) of 
title 46, United States Code, as amended by this section, shall apply 
beginning October 1, 2011.
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following:

``55. Chief Acquisition Officer.''.
    (d) 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 Secretary 
        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. 8. INTEGRATED DEEPWATER PROGRAM PLANS.

    (a) In General.--
            (1) Revised integrated deepwater program plans and 
        acquisition program.--The Secretary shall--
                    (A) revise and update the Integrated Deepwater 
                Program's project management plan within 180 days after 
                the date of enactment of this Act, in accordance with 
                the requirements of subsection (d);
                    (B) issue new or updated acquisition plans and 
                acquisition program baselines for each asset class 
                under the Integrated Deepwater Program, in accordance 
                with the requirements of subsection (e); and
                    (C) transmit copies thereof to the appropriate 
                congressional committees.
            (2) Use of alternatives analysis.--The Secretary shall base 
        the revisions and plans on the February 2008 Integrated 
        Deepwater System Alternatives Analysis prepared for the United 
        States Coast Guard by an independent consulting organization.
    (b) Alternatives Analyses.--
            (1) In general.--No acquisition of an experimental, 
        technically immature, or first-in-class major asset may be made 
        under the Integrated Deepwater Program unless an alternatives 
        analysis was conducted for such asset during the concept and 
        technology development phase. Such analyses shall be conducted 
        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. Such alternatives analyses shall include--
                    (A) an examination of capability, interoperability, 
                and other advantages and disadvantages;
                    (B) an evaluation of whether different quantities 
                of specific assets could meet the Coast Guard's overall 
                performance needs;
                    (C) a discussion of key assumptions and variables, 
                and sensitivity to changes in such assumptions and 
                variables;
                    (D) an assessment of technology risk and maturity;
                    (E) an evaluation of relevant safety and 
                performance records;
                    (F) a calculation of costs, including life cycle 
                costs;
                    (G) a business case of viable alternatives;
                    (H) an examination of likely research and 
                development costs and the levels of uncertainty 
                associated with such estimated costs;
                    (I) an examination of likely production and 
                deployment costs and the levels of uncertainty 
                associated with such estimated costs;
                    (J) an examination of likely operating and support 
                costs and the levels of uncertainty associated with 
                such estimated costs;
                    (K) if they are likely to be significant, an 
                examination of likely disposal costs and the levels of 
                uncertainty associated with such estimated costs;
                    (L) an analysis of the risks to production cost, 
                schedule, and life-cycle cost resulting from the 
                experimental, technically immature nature of the 
                systems under consideration; and
                    (M) such additional measures the Secretary 
                determines to be necessary for appropriate evaluation 
                of the asset.
    (c) Future Revisions.--The Secretary shall--
            (1) notify each of the appropriate congressional committees 
        whenever an alternatives analysis or revision of an 
        alternatives analysis under the Integrated Deepwater Program 
        are initiated under this Act;
            (2) transmit a copy of the Integrated Deepwater Program's 
        project management plan, acquisition plans, or acquisition 
        program baselines to each of the appropriate congressional 
        committees whenever any such document is created or revised; 
        and
            (3) maintain a historical file containing, and make 
        available to each of the appropriate congressional committees, 
        upon request, copies of each version of those documents as they 
        are revised.
    (d) Project Management Plan.--The revised project management plan 
required by subsection (a)(1) shall include the following:
            (1) An analysis and risk assessment of the technology risks 
        and level of maturity for major technologies used on all 
        classes of asset acquisitions under the Integrated Deepwater 
        Program, including the National Security Cutter, fast response 
        cutter, offshore patrol cutter, the vertical unmanned aerial 
        vehicle, maritime patrol aircraft, HC-130J aircraft, and C4ISR 
        systems.
            (2) A description of how the Coast Guard plans to utilize 
        arrangements with the Department of Defense for support in 
        contracting and management of acquisitions under the Integrated 
        Deepwater Program and to seek opportunities to leverage off of 
        Department of Defense contracts, and contracts of other 
        appropriate agencies, to obtain the best possible price for 
        Integrated Deepwater Program assets.
            (3) A life-cycle cost estimate for the Integrated Deepwater 
        Program which shall include asset acquisition and logistics 
        support decisions and planned operational tempo and locations.
            (4) Any other information the Secretary deems necessary.
    (e) Acquisition Program Baseline.--
            (1) In general.--The new acquisition program baselines 
        required by subsection (a)(1) shall include--
                    (A) a plan for the acquisition, and the schedule 
                and costs for delivery of such acquisitions;
                    (B) a lifecycle cost estimate that includes asset 
                acquisition and logistics support decisions and planned 
                operational tempo and locations; and
                    (C) such other information as the Secretary deems 
                necessary.
            (2) Offshore patrol cutter.--When an acquisition program 
        baseline is completed for the offshore patrol cutter following 
        an alternatives analysis for that asset class, the acquisition 
        program baseline shall include a detailed statement of the 
        service life, fatigue life, maximum range, maximum speed, and 
        number of days underway under general Atlantic and North 
        Pacific Sea conditions the cutter will be built to achieve. The 
        offshore patrol cutter's acquisition program baseline shall be 
        completed and transmitted to each of the appropriate 
        congressional committees not less than 90 days before the 
        Secretary issues a request for proposals for construction of an 
        offshore patrol cutter.

SEC. 9. REPORTS.

    (a) Annual Report.--
            (1) In general.--Within 45 days after the end of each 
        fiscal year, the Secretary shall submit a comprehensive annual 
        report on the progress of the Integrated Deepwater Program to 
        the appropriate congressional committees.
            (2) Scope.--At a minimum, the report shall include--
                    (A) an outline and description of all changes to 
                the Integrated Deepwater Program's project management 
                plan during the previous fiscal year;
                    (B) an outline and description of all changes to 
                acquisition plans and acquisition program baselines for 
                all Integrated Deepwater Program asset acquisitions 
                during the previous fiscal year, including all updates 
                to life cycle cost estimates, acquisition cost 
                estimates, schedule changes, and changes in asset 
                performance requirements;
                    (C) a summary of findings of all alternatives 
                analyses completed or revised during the previous 
                fiscal year under the Integrated Deepwater Program;
                    (D) an updated development schedule for each asset 
                and asset class, including estimated annual costs until 
                development is completed;
                    (E) an updated acquisition schedule for each asset 
                and asset class, including estimated annual costs and 
                units to be procured until acquisition is completed;
                    (F) an updated projection of the remaining 
                operational lifespan of each legacy asset and projected 
                costs for sustaining such assets;
                    (G) a breakdown of the percentage of the total 
                amount of funds expended on acquisitions under the 
                Integrated Deepwater Program during the previous fiscal 
                year that has been paid to each of small businesses, 
                socially and economically disadvantaged small business 
                concerns eligible for assistance under section 8(a) of 
                the Small Business Act (15 U.S.C. 637(a)), minority-
                owned businesses, women-owned businesses, and service 
                disabled veteran-owned businesses;
                    (H) information on the status of agreements and 
                progress of other arrangements with the Department of 
                Defense for support in contracting and management of 
                acquisitions under the Integrated Deepwater Program 
                required by section 10 of this Act and the updated 
                project management plan as required by section 8(a) of 
                this Act;
                    (I) an update on the Secretary's progress in 
                meeting goals for the development of the acquisition 
                program described in the Blueprint for Acquisition 
                Reform, and required by this Act, including staffing 
                levels and professional development;
                    (J) a financial accounting of the Integrated 
                Deepwater Program as of the end of the fiscal year, 
                which shall include a balance sheet, statement of net 
                cost, statement of changes in net position, and 
                statement of budgetary resources of the Program;
                    (K) an update on the status of efforts to enhance 
                the role of Coast Guard program managers in developing 
                and carrying out acquisitions programs and efforts to 
                promote a balanced workforce in which women and members 
                of racial and ethnic minority groups are appropriately 
                represented in Government service; and
                    (L) such additional information as the Secretary 
                deems necessary for updating Congress on the progress 
                of the Integrated Deepwater Program.
    (b) Cost Overruns and Delays.--
            (1) In general.--The Secretary shall submit a report to the 
        appropriate congressional committees as soon as possible, but 
        not later than 30 days, after the Deepwater Program Executive 
        Officer becomes aware of the breach of an acquisition program 
        baseline under the Integrated Deepwater Program by--
                    (A) a likely cost overrun greater than 8 percent of 
                the acquisition program baseline total acquisition cost 
                for that individual asset or a class of assets;
                    (B) a likely delay of more than 180 days in the 
                delivery schedule for any individual asset or class of 
                assets; or
                    (C) an anticipated failure for any individual asset 
                or class of assets to satisfy any key performance 
                threshold or parameter under the Integrated Deepwater 
                Program acquisition program baseline.
            (2) Content.--The report submitted under paragraph (1) 
        shall include
                    (A) a detailed description of the breach and an 
                explanation of its cause;
                    (B) the projected impact to cost, schedule and 
                performance;
                    (C) an updated total acquisition cost and the 
                complete history of changes to the original cost 
                estimate described in the plan submitted under section 
                8(e);
                    (D) the updated acquisition schedule and the 
                complete history of changes to the original schedule 
                described in the plan submitted under section 8(e);
                    (E) a full life-cycle cost analysis for the asset 
                or class of assets;
                    (F) a remediation plan identifying corrective 
                actions and any resulting issues or risks; and
                    (G) a description of how progress in the 
                remediation plan will be measured and monitored.
            (3) 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 schedule and costs 
        described in the acquisition program baseline total acquisition 
        cost for that individual asset or class of assets, the 
        Secretary shall include in the report a written certification, 
        with a supporting explanation, that--
                    (A) the asset or asset class is essential to the 
                accomplishment of Coast Guard missions;
                    (B) there are no alternatives to such asset or 
                asset class which will provide equal or greater 
                capability in both a more cost-effective and timely 
                manner;
                    (C) the new acquisition schedule and estimates for 
                total acquisition cost are reasonable; and
                    (D) the management structure for the acquisition 
                program is adequate to manage and control costs, 
                schedule, and performance.
            (4) Certified assets and asset classes.--If the Secretary 
        certifies an asset or asset class under paragraph (3), the 
        requirements of this sub-section shall be met based on the new 
        estimates of cost and schedule contained in that certification.
    (c) Report on Integrated Deepwater Program C4ISR.--
            (1) Independent assessment.--Not later than 3 months after 
        the date of enactment of this Act, the Secretary shall enter 
        into an arrangement with the National Research Council of the 
        National Academy of Sciences to conduct a study to assess the 
        Coast Guard's Integrated Deepwater Program C4ISR systems and 
        acquisition plans. This study shall include an examination of--
                    (A) the Coast Guard's current and planned 
                Integrated Deepwater Program C4ISR capabilities and 
                architecture;
                    (B) the adequacy of the Integrated Deepwater 
                Program C4ISR acquisition's Information Technology 
                requirements;
                    (C) whether the planned Integrated Deepwater 
                Program C4ISR systems are sufficiently adaptable to 
                meet the needs of the Coast Guard's mission 
                requirements;
                    (D) whether the planned Integrated Deepwater 
                Program C4ISR systems facilitate future upgrades as 
                C4ISR technology advances; and
                    (E) the adequacy of the Coast Guard's 
                organizational, personnel, and training systems for 
                acquiring, utilizing, and sustaining Integrated 
                Deepwater Program C4ISR systems.
    (d) Patrol Boat Report.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall submit to the appropriate 
congressional committees a report on how the Coast Guard plans to 
manage the annual readiness gap of lost time for 110-foot patrol boats 
from fiscal year 2009 through fiscal year 2015. The report shall 
include--
            (1) a description of the mission performance gap detailing 
        the geographic regions and Coast Guard capabilities affected;
            (2) a summary of the patrol hours that will be lost due to 
        delays in replacing the 110-foot cutters and lost capabilities 
        of the 110-foot cutters that have been converted;
            (3) an analysis of factors affecting the mission 
        performance gap that are unrelated to the Integrated Deepwater 
        Program, including deployment of Coast Guard assets overseas 
        and continuous vessel shortages;
            (4) an identification of assets that are being used or may 
        be used to alleviate the annual readiness gap of lost time for 
        such patrol boats, including any acquisition or lease 
        considered and the reasons they were not pursued;
            (5) in cases where Coast Guard assets are used more heavily 
        to alleviate the readiness gap, an assessment of the estimated 
        additional maintenance costs incurred and asset lifespan lost 
        due to the increased use of such assets;
            (6) a projection of the remaining operational lifespan of 
        the 110-foot patrol boat fleet;
            (7) a description of how extending through fiscal year 2015 
        the transfer agreement between the Coast Guard and the United 
        States Navy for 3 Cyclone class 179-foot patrol coastal ships 
        would affect the annual readiness gap of lost time for 110-foot 
        patrol boats; and
            (8) an estimate of the cost to extend the operational 
        lifespan of the 110-foot patrol boat fleet for each of fiscal 
        years 2008 through 2015.
    (e) Acquisitions Workforce Report.--Within 4 months after the date 
of enactment of this Act, the Secretary shall report on the development 
of the acquisitions office within the Coast Guard, describing the 
specific staffing structure for that directorate, including--
            (1) identification of all acquisitions 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
            (2) a formal organizational chart and identification of 
        when managerial positions are to be filled.
    (f) Elevation of Disputes to the Chief Acquisition Officer.--Within 
30 days after the elevation to the Chief Acquisition Officer of any 
design or other dispute regarding the Integrated Deepwater Program 
contract or an item to be acquired under that contract, the Secretary 
shall provide to the appropriate congressional committees a detailed 
description of the issue and the rationale underlying the decision 
taken by the Chief Acquisition Officer to resolve the issue.
    (g) Amendment of 2006 Act.--Section 408(a) of the Coast Guard and 
Maritime Transportation Act of 2006 is amended--
            (1) by striking paragraphs (1) and (3); and
            (2) by redesignating paragraphs (2) and (4) through (8) as 
        paragraphs (1) through (6), respectively.

SEC. 10. DEPARTMENT OF DEFENSE CONSULTATION.

    (a) In General.--The Secretary shall make arrangements as 
appropriate with the Secretary of Defense for support in contracting 
and management of acquisitions under the Integrated Deepwater Program. 
The Coast Guard shall also seek opportunities to leverage off of 
Department of Defense contracts, and contracts of other appropriate 
agencies, to obtain the best possible price for Integrated Deepwater 
Program assets.
    (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 obtain the assistance of the Office of the 
Assistant Secretary of the Navy for Research, Development, and 
Acquisition, including the Navy Systems Commands, 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 Acquisition Officer, Coast Guard Chief 
        Engineer, and the Coast Guard Chief Information Officer may 
        identify;
            (2) the use, as appropriate, of Navy technical expertise; 
        and
            (3) the temporary assignment or exchange of personnel 
        between the Coast Guard and the Office of the Assistant 
        Secretary of the Navy for Research, Development, and 
        Acquisition, including Naval Systems Commands, to facilitate 
        the development of organic capabilities in the Coast Guard.
    (c) Technical Authorities.--The technical authority established 
under section 6(b) shall adopt, to the extent practicable, procedures 
that are similar to those used by the Navy Senior Acquisition Official 
to approve all technical requirements.
    (d) Assessment.--Within 180 days after the date of enactment of 
this Act, the Comptroller General shall transmit a report to the 
appropriate congressional committees that--
            (1) contains an assessment of current Coast Guard 
        acquisition and management capabilities to manage acquisitions 
        under or in support of the Integrated Deepwater Program;
            (2) includes recommendations as to how the Coast Guard can 
        improve its acquisition management, either through internal 
        reforms or by seeking acquisition expertise from the Department 
        of Defense; and
            (3) addresses specifically the question of whether the 
        Coast Guard can better leverage Department of Defense or other 
        agencies' contracts that would meet the needs of the Integrated 
        Deepwater Program in order to obtain the best possible price.

SEC. 11. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committees 
        on Transportation and Infrastructure and Homeland Security of 
        the House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate.
            (2) Integrated deepwater program.--The term ``Integrated 
        Deepwater Program'' means the Integrated Deepwater Systems 
        Program described by the Coast Guard in its Report to Congress 
        on Revised Deepwater Implementation Plan, dated March 25, 2005, 
        including any subsequent modifications, revisions, or 
        restatements of the Program. The Integrated Deepwater Program 
        includes the procurement, development, production, sustainment, 
        modification, conversion, and missionization of C4ISR and of 
        cutter and aviation assets that operate more than 50 miles 
        offshore.
            (3) Life-cycle cost.--The term ``life-cycle cost'' means 
        all costs for development, procurement, construction, and 
        operations and support for a particular asset, without regard 
        to funding source or management control.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the department in which the Coast Guard is operating.
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