[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 924 Introduced in Senate (IS)]

  1st Session
                                 S. 924

  To strengthen the United States Coast Guard's Integrated Deepwater 
                                Program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 20, 2007

Ms. Cantwell (for herself and Ms. Snowe) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
  To strengthen the United States Coast Guard's Integrated Deepwater 
                                Program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Integrated 
Deepwater Program Reform Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Procurement structure.
Sec. 3. Analysis of alternatives.
Sec. 4. Certification.
Sec. 5. Contract requirements.
Sec. 6. Improvements in Coast Guard management.
Sec. 7. Procurement and report requirements.
Sec. 8. GAO review and recommendations.
Sec. 9. Definitions.

SEC. 2. PROCUREMENT STRUCTURE.

    (a) In General.--
            (1) Use of lead systems integrator.--Except as provided in 
        subsection (b), the United States Coast Guard may not use a 
        private sector entity as a lead systems integrator for 
        procurements under, or in support of, the Integrated Deepwater 
        Program after the date of enactment of this Act.
            (2) Full and open competition.--The United States Coast 
        Guard shall utilize full and open competition for any other 
        procurement for which an outside contractor is used under, or 
        in support of, the Integrated Deepwater Program after the date 
        of enactment of this Act.
    (b) Exceptions.--
            (1) Completion of procurement by lead systems integrator.--
        Notwithstanding subsection (a), the Coast Guard may use a 
        private sector entity as a lead systems integrator--
                    (A) to complete, without modification, any delivery 
                order or task order that was issued to the lead systems 
                integrator on or before the date of enactment of this 
                Act;
                    (B) for procurements of--
                            (i) the HC-130J and the C41SR, and
                            (ii) National Security Cutters or Maritime 
                        Patrol Aircraft under contract or order for 
                        construction as of the date of enactment of 
                        this Act,
                if the requirements of subsection (c) are met with 
                respect to such procurements; and
                    (C) for the procurement of additional National 
                Security Cutters or Maritime Patrol Aircraft if the 
                Commandant determines, after conducting the analysis of 
                alternatives required by section 3, that--
                            (i) the justifications of FAR 6.3 are met;
                            (ii) the procurement and the use of a 
                        private sector entity as a lead systems 
                        integrator for the procurement is in the best 
                        interest of the Federal Government; and
                            (iii) the requirements of subsection (c) 
                        are met with respect to such procurement.
            (2) Report on decision-making process.--If the Coast Guard 
        determines under paragraph (1) that it will use a private 
        sector lead systems integrator for a procurement, the 
        Commandant shall transmit a report to the Senate Committee on 
        Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and Infrastructure 
        notifying the Committees of its determination and explaining 
        the rationale for the determination.
    (c) Limitation on Lead Systems Integrators.--Neither an entity 
performing lead systems integrator functions for a procurement under, 
or in support of, the Integrated Deepwater Program, nor a Tier 1 
subcontractor, for any procurement described in subparagraph (B) or (C) 
of subsection (b)(1) may have a financial interest below the tier 1 
subcontractor level unless--
            (1) the entity was selected by the Coast Guard 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; or
            (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.

SEC. 3. ANALYSIS OF ALTERNATIVES.

    (a) In General.--Except with respect to a procurement described in 
subparagraph (A) or (B) of section 2(b)(1) of this Act, no procurement 
may be awarded under the Integrated Deepwater Program until an analysis 
of alternatives has been conducted under this section.
    (b) Independent Analysis.--Within 30 days after the date of 
enactment of this Act, the Commandant shall execute a contract for an 
analysis of alternatives with a Federally Funded Research and 
Development Center, an appropriate entity of the Department of Defense, 
or a similar independent third party entity that has appropriate 
acquisition expertise for independent analysis of all of the proposed 
procurements under, or in support of, the Integrated Deepwater Program, 
including procurements described in section 2(b)(1)(B), and for any 
future major changes of such procurements. The Commandant may not 
contract under this subsection for such an analysis with any entity 
that has a substantial financial interest in any part of the Integrated 
Deepwater Program as of the date of enactment of this Act or in any 
alternative being considered.
    (c) Analysis.--The analysis of alternatives provided pursuant to 
the contract under subsection (b) shall include--
            (1) a discussion of capability, interoperability, and other 
        advantages and disadvantages of the proposed procurements;
            (2) an examination of feasible alternatives;
            (3) a discussion of key assumptions and variables, and 
        sensitivity to changes in such assumptions and variables;
            (4) an assessment of technology risk and maturity; and
            (5) a calculation of costs, including life-cycle costs.
    (d) Report to Congress.--As soon as possible after an analysis of 
alternatives has been completed, the Commandant shall develop a plan 
for the procurements addressed in the analysis and shall transmit a 
report describing the plan to the Senate Committee on Commerce, 
Science, and Transportation and the House of Representatives Committee 
on Transportation and Infrastructure.

SEC. 4. CERTIFICATION.

    (a) In General.--A contract, delivery order, or task order for 
procurement under, or in support of, the Coast Guard's Integrated 
Deepwater Program may not be executed by the Coast Guard until the 
Commandant certifies that--
            (1) appropriate market research has been conducted prior to 
        technology development to reduce duplication of existing 
        technology and products;
            (2) the technology has been demonstrated in a relevant 
        environment;
            (3) the technology demonstrates a high likelihood of 
        accomplishing its intended mission;
            (4) the technology is affordable when considering the per 
        unit cost and the total procurement cost in the context of the 
        total resources available during the period covered by the 
        Integrated Deepwater Program;
            (5) the technology is affordable when considering the 
        ability of the Coast Guard to accomplish its missions using 
        alternatives, based on demonstrated technology, design, and 
        knowledge;
            (6) reasonable cost and schedule estimates have been 
        developed to execute the product development and production 
        plan for the technology;
            (7) funding is available to execute the product development 
        and production plan for the technology; and
            (8) the technology complies with all relevant policies, 
        regulations, and directives of the Coast Guard.
    (b) Report to Congress.--The Commandant shall transmit a copy of 
each certification required under subsection (a) to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure within 
30 days after the completion of the certification.

SEC. 5. CONTRACT REQUIREMENTS.

    The Commandant shall ensure that any contract, delivery order, or 
task order for procurement under, or in support of, the Integrated 
Deepwater Program executed by the Coast Guard--
            (1) incorporates provisions that address the 
        recommendations related to award fee determination and award 
        term evaluation made by the Government Accountability Office in 
        its March, 2004, report entitled Coast Guard's Deepwater 
        Program Needs Increased Attention to Management and Contractor 
        Oversight, GAO-04-380, and any subsequent Government 
        Accountability Office recommendations relevant to the contract 
        terms issued before the date of enactment of this Act, 
        including that any award or incentive fee is tied to program 
        outcomes;
            (2) provides that certification of any Integrated Deepwater 
        Program procurement for performance, safety, and any other 
        relevant factor will be conducted by an independent third 
        party;
            (3) does not include--
                    (A) for any contract extending the existing 
                Integrated Deepwater Program contract term, minimum 
                requirements for the purchase of a given or 
                determinable number of specific assets;
                    (B) provisions that commit the Coast Guard without 
                express written approval by the Coast Guard;
                    (C) any provision allowing for equitable adjustment 
                that differs from the Federal Acquisition Regulations; 
                and
            (4) for any contract extending the existing Integrated 
        Deepwater Program contract term, is reviewed by, and addresses 
        recommendations made by, the Under Secretary of Defense for 
        Acquisition, Technology, and Logistics through the Defense 
        Acquisition University.

SEC. 6. IMPROVEMENTS IN COAST GUARD MANAGEMENT.

    (a) In General.--As soon as practicable after the date of enactment 
of this Act, the Commandant shall take action to ensure that--
            (1) the measures contained in the Coast Guard's report 
        entitled Coast Guard: Blue Print for Acquisition Reform are 
        implemented fully;
            (2) any additional measures for improved management 
        recommended by the Defense Acquisition University in its Quick 
        Look Study of the United States Coast Guard Deepwater Program, 
        dated February 5, 2007, are implemented;
            (3) integrated product teams, and all higher-level teams 
        that oversee integrated product teams, are chaired by Coast 
        Guard personnel; and
            (4) the Assistant Commandant for Engineering and Logistics 
        is designated as the Technical Authority for all design, 
        engineering, and technical decisions for the Integrated 
        Deepwater Program.
    (b) Transfer.--
            (1) In general.--Section 93(a) of title 14, United States 
        Code, is amended--
                    (A) by striking ``and'' after the semicolon in 
                paragraph (23);
                    (B) by striking ``appropriate.'' in paragraph (24) 
                and inserting ``appropriate; and''; and
                    (C) by adding at the end thereof the following:
            ``(25) notwithstanding any other provision of law, in any 
        fiscal year transfer funds made available for personnel, 
        compensation, and benefits from the appropriation account 
        `Acquisition, Construction, and Improvement' to the 
        appropriation account `Operating Expenses' for personnel 
        compensation and benefits and related costs necessary to 
        execute new or existing procurements of the Coast Guard.''.
            (2) Notification.--Within 30 days after making a transfer 
        under section 93(a)(25) of title 14, United States Code, the 
        Commandant shall notify the Senate Committee on Commerce, 
        Science, Transportation and Infrastructure, the Senate 
        Committee on Appropriations, the House Committee on 
        Transportation and Infrastructure, and the House Committee on 
        Appropriations.

SEC. 7. PROCUREMENT AND REPORT REQUIREMENTS.

    (a) Selected Acquisition Reports.--The Commandant shall submit to 
the Senate Committee on Commerce, Science, and Transportation and the 
House of Representatives Committee on Transportation and Infrastructure 
reports on the Integrated Deepwater Program that contain the same type 
of information with respect to that Program, to the greatest extent 
practicable, as the Secretary of Defense is required to provide to the 
Congress under section 2432 of title 10, United States Code, with 
respect to major defense procurement programs.
    (b) Unit Cost Reports.--Each Coast Guard program manager under the 
Coast Guard's Integrated Deepwater Program shall provide to the 
Commandant, or the Commandant's designee, reports on the unit cost of 
assets acquired or modified that are under the management or control of 
the Coast Guard program manager on the same basis and containing the 
same information, to the greatest extent practicable, as is required to 
be included in the reports a program manager is required to provide to 
the service procurement executive designated by the Secretary of 
Defense under section 2433 of title 10, United States Code, with 
respect to a major defense procurement program.
    (c) Reporting on Cost Overruns and Delays.--Within 30 days after 
the Commandant becomes aware of a likely cost overrun or scheduled 
delay, the Commandant shall transmit a report to the Senate Committee 
on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure that 
includes--
            (1) a description of the known or anticipated cost overrun;
            (2) a detailed explanation for such overruns;
            (3) a detailed description of the Coast Guard's plans for 
        responding to such overrun and preventing additional overruns; 
        and
            (4) a description of any significant delays in procurement 
        schedules.

SEC. 8. GAO REVIEW AND RECOMMENDATIONS.

    (a) Award Fee and Award Term Criteria.--The Coast Guard may not 
execute a new contract, delivery order, or task order, nor agree to 
extend the term of an existing contract, with a prime contractor for 
procurement under, or in support of, the Integrated Deepwater Program 
until the Commandant has consulted with the Comptroller General to 
ensure that the Government Accountability Office's recommendations, in 
its March, 2004, report entitled Coast Guard's Deepwater Program Needs 
Increased Attention to Management and Contractor Oversight, GAO-04-380, 
and any subsequent Government Accountability Office recommendations 
issued before the date of enactment of this Act, with respect to award 
fee and award term criteria have been fully addressed.
    (b) Other Recommendations.--The Commandant shall ensure that all 
other recommendations in that report, and any subsequent 
recommendations issued before the date of enactment of this Act, are 
implemented to the maximum extent practicable by the Coast Guard within 
1 year after the date of enactment of this Act. The Commandant shall 
report to the Senate Committee on Commerce, Science, and Transportation 
and the House of Representatives Committee on Transportation and 
Infrastructure on the Coast Guard's progress in implementing such 
recommendations.
    (c) GAO Reports on Implementation.--Beginning 6 months after the 
date of enactment of this Act, the Comptroller General shall submit an 
annual report to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Transportation and Infrastructure on the Coast Guard's progress in 
implementing the Government Accountability Office's recommendations, in 
its March, 2004, report entitled Coast Guard's Deepwater Program Needs 
Increased Attention to Management and Contractor Oversight, GAO-04-380, 
and any subsequent Government Accountability Office recommendations 
issued before the date of enactment of this Act, in carrying out this 
Act.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Commandant.--The term ``Commandant'' means the 
        Commandant of the United States Coast Guard.
            (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.
            (3) Procurement.--The term ``procurement'' includes 
        development, production, sustainment, modification, conversion, 
        and missionization.
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