[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1665 Referred in Senate (RFS)]

111th CONGRESS
  1st Session
                                H. R. 1665


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 30, 2009

    Received; read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 AN ACT


 
 To structure Coast Guard acquisition processes and policies, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Coast Guard 
Acquisition Reform Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
      TITLE I--RESTRICTIONS ON THE USE OF LEAD SYSTEMS INTEGRATORS

Sec. 101. Procurement structure.
                TITLE II--COAST GUARD ACQUISITION POLICY

Sec. 201. Operational requirements.
Sec. 202. Required contract terms.
Sec. 203. Life-cycle cost estimates.
Sec. 204. Test and evaluation.
Sec. 205. Capability standards.
Sec. 206. Acquisition program reports.
Sec. 207. Undefinitized contractual actions.
Sec. 208. Guidance on excessive pass-through charges.
Sec. 209. Acquisition of major capabilities: Alternatives analysis.
Sec. 210. Cost overruns and delays.
Sec. 211. Report on former Coast Guard officials employed by 
                            contractors to the agency.
Sec. 212. Department of Defense consultation.
                    TITLE III--COAST GUARD PERSONNEL

Sec. 301. Chief Acquisition Officer.
Sec. 302. Improvements in Coast Guard acquisition management.
Sec. 303. Recognition of Coast Guard personnel for excellence in 
                            acquisition.
Sec. 304. Enhanced status quo officer promotion system.
Sec. 305. Coast Guard acquisition workforce expedited hiring authority.

SEC. 2. DEFINITIONS.

    In this Act, the following definitions apply:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate.
            (2) Commandant.--The term ``Commandant'' means the 
        Commandant of the Coast Guard.
            (3) Level 1 acquisition.--The term ``Level 1 acquisition'' 
        means--
                    (A) an acquisition by the Coast Guard--
                            (i) the estimated life-cycle costs of which 
                        exceed $1,000,000,000; or
                            (ii) the estimated total acquisition costs 
                        of which exceed $300,000,000; or
                    (B) any acquisition that the Chief Acquisition 
                Officer of the Coast Guard determines to have a special 
                interest--
                            (i) due to--
                                    (I) the experimental or technically 
                                immature nature of the asset;
                                    (II) the technological complexity 
                                of the asset;
                                    (III) the commitment of resources; 
                                or
                                    (IV) the nature of the capability 
                                or set of capabilities to be achieved; 
                                or
                            (ii) because such acquisition is a joint 
                        acquisition.
            (4) Level 2 acquisition.--The term ``Level 2 acquisition'' 
        means an acquisition by the Coast Guard--
                    (A) the estimated life-cycle costs of which are 
                equal to or less than $1,000,000,000, but greater than 
                $300,000,000; or
                    (B) the estimated total acquisition costs of which 
                are equal to or less than $300,000,0000, but greater 
                than $100,000,000.
            (5) Life-cycle cost.--The term ``life-cycle cost'' means 
        all costs for development, procurement, construction, and 
        operations and support for a particular capability or asset, 
        without regard to funding source or management control.

      TITLE I--RESTRICTIONS ON THE USE OF LEAD SYSTEMS INTEGRATORS

SEC. 101. PROCUREMENT STRUCTURE.

    (a) In General.--
            (1) Use of lead systems integrator.--Except as provided in 
        subsection (b), the Commandant may not use a private sector 
        entity as a lead systems integrator for an acquisition contract 
        awarded or delivery order or task order issued after the end of 
        the 180-day period beginning on the date of enactment of this 
        Act.
            (2) Full and open competition.--The Commandant and any lead 
        systems integrator engaged by the Coast Guard shall use full 
        and open competition for any acquisition contract awarded after 
        the date of enactment of this Act, unless otherwise excepted in 
        accordance with Federal acquisition laws and regulations 
        promulgated under those laws, including the Federal Acquisition 
        Regulation.
            (3) No effect on small business act.--Nothing in this 
        subsection shall be construed to supersede or otherwise affect 
        the authorities provided by and under the Small Business Act 
        (15 U.S.C. 631 et seq.).
    (b) Exceptions.--
            (1) National distress and response system modernization 
        program; national security cutters 2 and 3.--Notwithstanding 
        subsections (a) and (e), the Commandant may use a private 
        sector entity as a lead systems integrator for the Coast Guard 
        to complete the National Distress and Response System 
        Modernization Program (otherwise known as the ``Rescue 21'' 
        program) and National Security Cutters 2 and 3.
            (2) Completion of acquisition by lead systems integrator.--
        Notwithstanding subsection (a), the Commandant may use a 
        private sector entity as a lead systems integrator for the 
        Coast Guard--
                    (A) to complete any delivery order or task order, 
                including the exercise of previously established 
                options on a delivery order or task order that was 
                issued to a lead systems integrator on or before the 
                date that is 180 days after the date of enactment of 
                this Act without any change in the quantity of 
                capabilities or assets or the specific type of 
                capabilities or assets covered by the order;
                    (B) for a contract awarded after the date that is 
                180 days after the date of enactment of this Act for 
                acquisition of, or in support of, the HC-130J aircraft, 
                the HH-65 aircraft, or the C4ISR system, if the 
                requirements of subsection (c) are met with respect to 
                such acquisitions;
                    (C) for a contract awarded after the date that is 
                180 days after the date of enactment of this Act for 
                acquisition of, or in support of, Maritime Patrol 
                Aircraft, if the requirements of subsection (c) are met 
                with respect to such an acquisition; and
                    (D) for the acquisition of, or in support of, 
                additional National Security Cutters or Maritime Patrol 
                Aircraft, if the Commandant determines that--
                            (i) the acquisition is in accordance with 
                        Federal acquisition laws and regulations 
                        promulgated under those laws, including the 
                        Federal Acquisition Regulation;
                            (ii) the acquisition and the use of a 
                        private sector entity as a lead systems 
                        integrator for the acquisition are in the best 
                        interest of the Federal Government; and
                            (iii) the requirements of subsection (c) 
                        are met with respect to such acquisition.
            (3) Report on decision-making process.--If the Commandant 
        determines under subparagraph (B), (C), or (D) of subsection 
        (b)(2) that the Coast Guard will use a private sector lead 
        systems integrator for an acquisition, the Commandant shall 
        notify in writing the appropriate congressional committees of 
        the Commandant's determination and shall provide a detailed 
        rationale for the determination, at least 30 days before the 
        award of a contract or issuance of a 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. For purposes of that comparison, the 
        cost of award directly to a manufacturer or shipyard shall 
        include the costs of Government contract management and 
        oversight.
    (c) Limitation on Lead Systems Integrators.--Neither an entity 
performing lead systems integrator functions for a Coast Guard 
acquisition nor a Tier 1 subcontractor for any acquisition described in 
subparagraph (B), (C), or (D) of subsection (b)(2) may have a financial 
interest in a subcontractor below the Tier 1 subcontractor level 
unless--
            (1) the subcontractor was selected by the prime contractor 
        through full and open competition for such procurement;
            (2) the procurement was awarded by 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 Commandant has determined that the procurement was 
        awarded in a manner consistent with Federal acquisition laws 
        and regulations promulgated under those laws, including the 
        Federal Acquisition Regulation.
    (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 sub-systems or other components of a vessel or 
aircraft described in subparagraph (B), (C), or (D) of subsection 
(b)(2).
    (e) Termination Date for Exceptions.--Except as described in 
subsection (b)(1), the Commandant may not use a private sector entity 
as a lead systems integrator for acquisition contracts awarded, or task 
orders or delivery orders issued, after the earlier of--
            (1) September 30, 2011; or
            (2) the date on which the Commandant certifies in writing 
        to the appropriate congressional committees that the Coast 
        Guard has available and can retain sufficient acquisition 
        workforce 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 
        systems integrator in an efficient and cost-effective manner.

                TITLE II--COAST GUARD ACQUISITION POLICY

SEC. 201. OPERATIONAL REQUIREMENTS.

    (a) In General.--No Level 1 or Level 2 acquisition program may be 
initiated by the Coast Guard, and no production contract may be awarded 
for such an acquisition, unless the Commandant has approved an 
operational requirement for such acquisition.
    (b) Operational Requirement for Acquisition Programs.--
            (1) In general.--The Commandant shall establish mature and 
        stable operational requirements for acquisition programs.
            (2) Elements.--Prior to establishing operational 
        requirements under paragraph (1), the Commandant shall--
                    (A) prepare a preliminary statement of need, a 
                concept of operations, an analysis of alternatives or 
                the equivalent, an estimate of life-cycle costs, and 
                requirements for interoperability with other 
                capabilities and assets within and external to the 
                Coast Guard; and
                    (B) in preparing the concept of operations under 
                subparagraph (A), coordinate with acquisition and 
                support professionals, requirements officials, 
                operational users and maintainers, and resource 
                officials who can ensure the appropriate consideration 
                of performance, cost, schedule and risk trade-offs.
    (c) Consideration of Trade-offs.--In establishing operational 
requirements under subsection (a), the Commandant shall develop and 
implement mechanisms to ensure that trade-offs among performance, cost, 
schedule, and risk are considered in the establishment of operational 
requirements for development and production of a Level 1 or Level 2 
acquisition.
    (d) Elements.--The mechanisms required under this section shall 
ensure at a minimum that Coast Guard officials responsible for 
acquisition management, budget, and cost estimating functions have the 
authority to develop cost estimates and raise cost and schedule matters 
at any point in the process of establishing operational requirements 
for a Level 1 or Level 2 acquisition.

SEC. 202. REQUIRED CONTRACT TERMS.

    (a) In General.--The Commandant shall ensure that a contract 
awarded or a delivery order or task order issued for an acquisition of 
a capability or an asset with an expected service life of 10 years and 
with a total acquisition cost that is equal to or exceeds $10,000,000 
awarded or issued by the Coast Guard after the date of enactment of 
this Act--
            (1) provides that all certifications for an end-state 
        capability or asset under such contract, delivery order, or 
        task order, respectively, will be conducted by the Commandant 
        or an independent third party, and that self-certification by a 
        contractor or subcontractor is not allowed;
            (2) requires that the Commandant shall maintain the 
        authority to establish, approve, and maintain technical 
        requirements;
            (3) requires that any measurement of contractor and 
        subcontractor performance be based on the status of all work 
        performed, including the extent to which the work performed met 
        all performance, cost, and schedule requirements;
            (4) specifies that, for the acquisition or upgrade of air, 
        surface, or shore capabilities and assets for which compliance 
        with TEMPEST certification is a requirement, the standard for 
        determining such compliance will be the air, surface, or shore 
        standard then used by the Department of the Navy for that type 
        of capability or asset; and
            (5) for any contract awarded to acquire an Offshore Patrol 
        Cutter, includes provisions specifying the service life, 
        fatigue life, and days underway in general Atlantic and North 
        Pacific Sea conditions, maximum range, and maximum speed the 
        cutter will be built to achieve.
    (b) Prohibited Contract Provisions.--The Commandant shall ensure 
that any contract awarded or delivery order or task order issued by the 
Coast Guard after the date of enactment of this Act does not include 
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 a contract with a lead systems integrator--
            (1) shall not include any minimum requirements for the 
        purchase of a given or determinable number of specific 
        capabilities or assets; and
            (2) shall be reviewed by an independent third party with 
        expertise in acquisition management, and the results of that 
        review shall be submitted to the appropriate congressional 
        committees at least 60 days prior to the award of the contract, 
        contract modification, or award term.

SEC. 203. LIFE-CYCLE COST ESTIMATES.

    (a) In General.--The Commandant shall implement mechanisms to 
ensure the development and regular updating of life-cycle cost 
estimates for each acquisition with a total acquisition cost that 
equals or exceeds $10,000,000 and an expected service life of 10 years, 
and to ensure that these estimates are considered in decisions to 
develop or produce new or enhanced capabilities and assets.
    (b) Types of Estimates.--In addition to life-cycle cost estimates 
that may be developed by acquisition program offices, the Commandant 
shall require that an independent life-cycle cost estimate be developed 
for each Level 1 or Level 2 acquisition program or project.
    (c) Required Updates.--For each Level 1 or Level 2 acquisition 
program or project the Commandant shall require that life-cycle cost 
estimates shall be updated before each milestone decision is concluded 
and the program or project enters a new acquisition phase.

SEC. 204. TEST AND EVALUATION.

    (a) Test and Evaluation Master Plan.--
            (1) In general.--For any Level 1 or Level 2 acquisition 
        program or project the Coast Guard Chief Acquisition Officer 
        must approve a Test and Evaluation Master Plan specific to the 
        acquisition program or project for the capability, asset, or 
        sub-systems of the capability or asset and intended to minimize 
        technical, cost, and schedule risk as early as practicable in 
        the development of the program or project.
            (2) Test and evaluation strategy.--The TEMP shall--
                    (A) set forth an integrated test and evaluation 
                strategy that will verify that capability-level or 
                asset-level and sub-system-level design and 
                development, including performance and supportability, 
                have been sufficiently proven before the capability, 
                asset, or sub-system of the capability or asset is 
                approved for production; and
                    (B) require that adequate developmental tests and 
                evaluations and operational tests and evaluations 
                established under subparagraph (A) are performed to 
                inform production decisions.
            (3) Other components of temp.--At a minimum, the TEMP shall 
        identify--
                    (A) the key performance parameters to be resolved 
                through the integrated test and evaluation strategy;
                    (B) critical operational issues to be assessed in 
                addition to the key performance parameters;
                    (C) specific development test and evaluation phases 
                and the scope of each phase;
                    (D) modeling and simulation activities to be 
                performed, if any, and the scope of such activities;
                    (E) early operational assessments to be performed, 
                if any, and the scope of such assessments;
                    (F) operational test and evaluation phases;
                    (G) an estimate of the resources, including funds, 
                that will be required for all test, evaluation, 
                assessment, modeling, and simulation activities; and
                    (H) the Government entity or independent entity 
                that will perform the test, evaluation, assessment, 
                modeling, and simulation activities.
            (4) Update.--The Coast Guard Chief Acquisition Officer 
        shall approve an updated TEMP whenever there is a revision to 
        program or project test and evaluation strategy, scope, or 
        phasing.
            (5) Limitation.--The Coast Guard may not--
                    (A) proceed past that phase of the acquisition 
                process that entails approving the supporting 
                acquisition of a capability or asset before the TEMP is 
                approved by the Coast Guard Chief Acquisition Officer; 
                or
                    (B) award any production contract for a capability, 
                asset, or sub-system for which a TEMP is required under 
                this subsection before the TEMP is approved by the 
                Coast Guard Chief Acquisition Officer.
    (b) Tests and Evaluations.--
            (1) In general.--The Commandant shall ensure that the Coast 
        Guard conducts developmental tests and evaluations and 
        operational tests and evaluations of a capability or asset and 
        the sub-systems of the capability or asset for which a TEMP has 
        been prepared under subsection (a).
            (2) Use of third parties.--The Commandant shall ensure that 
        the Coast Guard uses third parties with expertise in testing 
        and evaluating the capabilities or assets and the sub-systems 
        of the capabilities or assets being acquired to conduct 
        developmental tests and evaluations and operational tests and 
        evaluations whenever the Coast Guard lacks the capability to 
        conduct the tests and evaluations required by a TEMP.
            (3) Communication of safety concerns.--The Commandant shall 
        require that safety concerns identified during developmental or 
        operational tests and evaluations or through independent or 
        Government-conducted design assessments of capabilities or 
        assets and sub-systems of capabilities or assets to be acquired 
        by the Coast Guard shall be communicated as soon as 
        practicable, but not later than 30 days after the completion of 
        the test or assessment event or activity that identified the 
        safety concern, to the program manager for the capability or 
        asset and the sub-systems concerned and to the Coast Guard 
        Chief Acquisition Officer.
            (4) Reporting of safety concerns.--Any safety concerns that 
        have been reported to the Chief Acquisition Officer for an 
        acquisition program or project shall be reported by the 
        Commandant to the appropriate congressional committees at least 
        90 days before the award of any contract or issuance of any 
        delivery order or task order for low, initial, or full-rate 
        production of the capability or asset concerned if they will 
        remain uncorrected or unmitigated at the time such a contract 
        is awarded or delivery order or task order is issued. The 
        report shall include a justification for the approval of that 
        level of production of the capability or asset before the 
        safety concern is corrected or mitigated. The report shall also 
        include an explanation of the actions that will be taken to 
        correct or mitigate the safety concern, the date by which those 
        actions will be taken, and the adequacy of current funding to 
        correct or mitigate the safety concern.
            (5) Asset already in low, initial, or full-rate 
        production.--If operational test and evaluation on a capability 
        or asset already in low, initial, or full-rate production 
        identifies a safety concern with the capability or asset or any 
        sub-systems of the capability or asset not previously 
        identified during developmental or operational test and 
        evaluation, the Commandant shall--
                    (A) notify the program manager and the Chief 
                Acquisition Officer of the safety concern as soon as 
                practicable, but not later than 30 days after the 
                completion of the test and evaluation event or activity 
                that identified the safety concern; and
                    (B) notify the appropriate congressional Committee 
                of the safety concern not later than 30 days after 
                notification is made to the program manager and Chief 
                Acquisition Officer, and include in such notification--
                            (i) an explanation of the actions that will 
                        be taken to correct or mitigate the safety 
                        concern in all capabilities or assets and sub-
                        systems of the capabilities or assets yet to be 
                        produced, and the date by which those actions 
                        will be taken;
                            (ii) an explanation of the actions that 
                        will be taken to correct or mitigate the safety 
                        concern in previously produced capabilities or 
                        assets and sub-systems of the capabilities or 
                        assets, and the date by which those actions 
                        will be taken; and
                            (iii) an assessment of the adequacy of 
                        current funding to correct or mitigate the 
                        safety concern in capabilities or assets and 
                        sub-systems of the capabilities or assets and 
                        in previously produced capabilities or assets 
                        and sub-systems.
    (c) Definitions.--In this section:
            (1) Developmental test and evaluation.--The term 
        ``developmental test and evaluation'' means--
                    (A) the testing of a capability or asset and the 
                sub-systems of the capability or asset to determine 
                whether they meet all contractual performance 
                requirements, including technical performance 
                requirements, supportability requirements, and 
                interoperability requirements and related 
                specifications; and
                    (B) the evaluation of the results of such testing.
            (2) Operational test and evaluation.--The term 
        ``operational test and evaluation'' means--
                    (A) the testing of a capability or asset and the 
                sub-systems of the capability or asset, under 
                conditions similar to those in which the capability or 
                asset and subsystems will actually be deployed, for the 
                purpose of determining the effectiveness and 
                suitability of the capability or asset and sub-systems 
                for use by typical Coast Guard users to conduct those 
                missions for which the capability or asset and sub-
                systems are intended to be used; and
                    (B) the evaluation of the results of such testing.
            (3) Safety concern.--The term ``safety concern'' means any 
        hazard associated with a capability or asset or a sub-system of 
        a capability or asset that is likely to cause serious bodily 
        injury or death to a typical Coast Guard user in testing, 
        maintaining, repairing, or operating the capability, asset, or 
        sub-system or any hazard associated with the capability, asset, 
        or sub-system that is likely to cause major damage to the 
        capability, asset, or sub-system during the course of its 
        normal operation by a typical Coast Guard user.
            (4) TEMP.--The term ``TEMP'' means a Test and Evaluation 
        Master Plan for which approval is required under this section.

SEC. 205. CAPABILITY STANDARDS.

    (a) Cutter Classification.--The Commandant shall cause each cutter, 
other than a National Security Cutter, acquired by the Coast Guard and 
delivered after the date of enactment of this Act to be classed by the 
American Bureau of Shipping before final acceptance.
    (b) Tempest Testing.--The Commandant shall--
            (1) cause all electronics on all aircraft, surface, and 
        shore capabilities and 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
            (2) certify that the capabilities and assets meet all 
        applicable TEMPEST requirements.
    (c) National Security Cutters.--
            (1) National security cutters 1 and 2.--Not later than 90 
        days before the Coast Guard awards any contract or issues any 
        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 Commandant shall submit to the appropriate 
        congressional committees and the Committee on Homeland Security 
        of the House of Representatives all results of an assessment of 
        the proposed hull strengthening design conducted by the Coast 
        Guard, including--
                    (A) 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;
                    (B) a cost benefit analysis of the proposed hull 
                strengthening measures for National Security Cutters 1 
                and 2; and
                    (C) a description of any operational restrictions 
                that would have to be applied to either National 
                Security Cutter 1 or 2 if the proposed hull 
                strengthening measures were not implemented on either 
                cutter.
            (2) Other vessels.--The Commandant shall cause the design 
        and construction of each National Security Cutter, other than 
        National Security Cutters 1, 2, and 3, to be assessed by an 
        independent third party with expertise in vessel design and 
        construction certification.
    (d) Aircraft Airworthiness.--The Commandant shall cause all 
aircraft and aircraft engines acquired by the Coast Guard and delivered 
after the date of enactment of this Act to be assessed for 
airworthiness by an independent third party with expertise in aircraft 
and aircraft engine certification, before final acceptance.

SEC. 206. ACQUISITION PROGRAM REPORTS.

    Any Coast Guard Level 1 or Level 2 acquisition program or project 
may not begin to obtain any capability or asset or proceed beyond that 
phase of its development that entails approving the supporting 
acquisition until the Commandant submits to the appropriate 
congressional committees the following:
            (1) The key performance parameters, the key system 
        attributes, and the operational performance attributes of the 
        capability and asset to be acquired under the proposed 
        acquisition program or project will be built to achieve.
            (2) A detailed list of the systems or other capabilities 
        with which the capability or asset to be acquired is intended 
        to be interoperable, including an explanation of the attributes 
        of interoperability.
            (3) The anticipated acquisition program baseline and 
        acquisition unit cost for the capability or asset to be 
        produced and deployed under the program or project.
            (4) A detailed schedule for the acquisition process showing 
        when all capability and asset acquisitions are to be completed 
        and when all acquired capabilities and assets are to be 
        initially and fully deployed.

SEC. 207. UNDEFINITIZED CONTRACTUAL ACTIONS.

    (a) In General.--The Coast Guard may not enter into an 
undefinitized contractual action unless such action is directly 
approved by the Head of Contracting Activity of the Coast Guard.
    (b) Requests for Undefinitized Contractual Actions.--Any request to 
the Head of Contracting Activity for approval of an undefinitized 
contractual action covered under subsection (a) must include a 
description of the anticipated effect on requirements of the Coast 
Guard if a delay is incurred for the purposes of determining 
contractual terms, specifications, and price before performance is 
begun under the contractual action.
    (c) Requirements for Undefinitized Contractual Actions.--
            (1) Deadline for agreement on terms, specifications, and 
        price.--A contracting officer of the Coast Guard may not enter 
        into an undefinitized contractual action unless the contractual 
        action provides for agreement upon contractual terms, 
        specification, and price by the earlier of--
                    (A) the end of the 180-day period beginning on the 
                date on which the contractor submits a qualifying 
                proposal to definitize the contractual terms, 
                specifications, and price; or
                    (B) the date on which the amount of funds obligated 
                under the contractual action is equal to more than 50 
                percent of the negotiated overall ceiling price for the 
                contractual action.
            (2) Limitation on obligations.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the contracting officer for an undefinitized 
                contractual action may not obligate under such 
                contractual action an amount that exceeds 50 percent of 
                the negotiated overall ceiling price until the 
                contractual terms, specifications, and price are 
                definitized for such contractual action.
                    (B) Exception.--Notwithstanding subparagraph (A), 
                if a contractor submits a qualifying proposal to 
                definitize an undefinitized contractual action before 
                an amount that exceeds 50 percent of the negotiated 
                overall ceiling price is obligated on such action, the 
                contracting officer for such action may not obligate 
                with respect to such contractual action an amount that 
                exceeds 75 percent of the negotiated overall ceiling 
                price until the contractual terms, specifications, and 
                price are definitized for such contractual action.
            (3) Waiver.--The Commandant may waive the application of 
        this subsection with respect to a contract if the Commandant 
        determines that the waiver is necessary to support--
                    (A) a contingency operation (as that term is 
                defined in section 101(a)(13) of title 10, United 
                States Code);
                    (B) an operation in response to an emergency that 
                poses an unacceptable threat to human health or safety 
                or to the marine environment; or
                    (C) an operation in response to a natural disaster 
                or major disaster or emergency designated by the 
                President under the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5121 et seq.).
            (4) Limitation on application.--This subsection does not 
        apply to an undefinitized contractual action for the purchase 
        of initial spares.
    (d) Inclusion of Nonurgent Requirements.--Requirements for spare 
parts and support equipment that are not needed on an urgent basis may 
not be included in an undefinitized contractual action by the Coast 
Guard for spare parts and support equipment that are needed on an 
urgent basis unless the Commandant approves such inclusion as being--
            (1) good business practice; and
            (2) in the best interests of the United States.
    (e) Modification of Scope.--The scope of an undefinitized 
contractual action under which performance has begun may not be 
modified unless the Commandant approves such modification as being--
            (1) good business practice; and
            (2) in the best interests of the United States.
    (f) Allowable Profit.--The Commandant shall ensure that the profit 
allowed on an undefinitized contractual action for which the final 
price is negotiated after a substantial portion of the performance 
required is completed reflects--
            (1) the possible reduced cost risk of the contractor with 
        respect to costs incurred during performance of the contract 
        before the final price is negotiated; and
            (2) the reduced cost risk of the contractor with respect to 
        costs incurred during performance of the remaining portion of 
        the contract.
    (g) Definitions.--In this section:
            (1) Undefinitized contractual action.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``undefinitized contractual action'' 
                means a new procurement action entered into by the 
                Coast Guard for which the contractual terms, 
                specifications, or price are not agreed upon before 
                performance is begun under the action.
                    (B) Exclusion.--Such term does not include 
                contractual actions with respect to the following:
                            (i) Foreign military sales.
                            (ii) Purchases in an amount not in excess 
                        of the amount of the simplified acquisition 
                        threshold.
                            (iii) Special access programs.
            (2) Qualifying proposal.--The term ``qualifying proposal'' 
        means a proposal that contains sufficient information to enable 
        complete and meaningful audits of the information contained in 
        the proposal as determined by the contracting officer.

SEC. 208. GUIDANCE ON EXCESSIVE PASS-THROUGH CHARGES.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Commandant shall issue guidance to ensure 
that pass-through charges on contracts, subcontracts, delivery orders, 
and task orders that are entered into with a private entity acting as a 
lead systems integrator by or on behalf of the Coast Guard are not 
excessive in relation to the cost of work performed by the relevant 
contractor or subcontractor. The guidance shall, at a minimum--
            (1) set forth clear standards for determining when no, or 
        negligible, value has been added to a contract by a contractor 
        or subcontractor;
            (2) set forth procedures for preventing the payment by the 
        Government of excessive pass-through charges; and
            (3) identify any exceptions determined by the Commandant to 
        be in the best interest of the Government.
    (b) Excessive Pass-through Charge Defined.--In this section the 
term ``excessive pass-through charge'', with respect to a contractor or 
subcontractor that adds no, or negligible, value to a contract or 
subcontract, means a charge to the Government by the contractor or 
subcontractor that is for overhead or profit on work performed by a 
lower-tier contractor or subcontractor, other than reasonable charges 
for the direct costs of managing lower-tier contractors and 
subcontracts and overhead and profit based on such direct costs.
    (c) Application of Guidance.--The guidance under this subsection 
shall apply to contracts awarded to a private entity acting as a lead 
systems integrator by or on behalf of the Coast Guard on or after the 
date that is 360 days after the date of enactment of this Act.

SEC. 209. ACQUISITION OF MAJOR CAPABILITIES: ALTERNATIVES ANALYSIS.

    The Coast Guard may not acquire an experimental or technically 
immature capability or asset or implement a Level 1 or Level 2 
acquisition, unless it has conducted an alternatives analysis for the 
capability or asset to be acquired in the concept and technology 
development phase of the acquisition process for the capability or 
asset. Such analysis 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 analysis shall 
include--
            (1) an assessment of the technical maturity of the 
        capability or asset and technical and other risks;
            (2) an examination of capability, interoperability, and 
        other advantages and disadvantages;
            (3) an evaluation of whether different combinations or 
        quantities of specific capabilities or assets could meet the 
        Coast Guard's overall performance needs;
            (4) a discussion of key assumptions and variables, and 
        sensitivity to change in such assumptions and variables;
            (5) when an alternative is an existing capability, asset, 
        or prototype, an evaluation of relevant safety and performance 
        records and costs;
            (6) a calculation of life-cycle costs, including--
                    (A) an examination of development costs and the 
                levels of uncertainty associated with such estimated 
                costs;
                    (B) an examination of likely production and 
                deployment costs and the levels of uncertainty 
                associated with such estimated costs;
                    (C) an examination of likely operating and support 
                costs and the levels of uncertainty associated with 
                such estimated costs;
                    (D) if they are likely to be significant, an 
                examination of likely disposal costs and the levels of 
                uncertainty associated with such estimated costs; and
                    (E) such additional measures the Commandant 
                determines to be necessary for appropriate evaluation 
                of the capability or asset; and
            (7) the business case for each viable alternative.

SEC. 210. COST OVERRUNS AND DELAYS.

    (a) In General.--The Commandant shall submit a report to the 
appropriate congressional committees as soon as possible, but not later 
than 30 days, after the Chief Acquisition Officer of the Coast Guard 
becomes aware of the breach of an acquisition program baseline for any 
Level 1 or Level 2 acquisition program, by--
            (1) a likely cost overrun greater than 10 percent of the 
        acquisition program baseline for that individual capability or 
        asset or a class of capabilities or assets;
            (2) a likely delay of more than 180 days in the delivery 
        schedule for any individual capability or asset or class of 
        capabilities or assets; or
            (3) an anticipated failure for any individual capability or 
        asset or class of capabilities or assets to satisfy any key 
        performance threshold or parameter under the acquisition 
        program baseline.
    (b) Content.--The report submitted under subsection (a) shall 
include--
            (1) a detailed description of the breach and an explanation 
        of its cause;
            (2) the projected impact to performance, cost, and 
        schedule;
            (3) an updated acquisition program baseline and the 
        complete history of changes to the original acquisition program 
        baseline;
            (4) the updated acquisition schedule and the complete 
        history of changes to the original schedule;
            (5) a full life-cycle cost analysis for the capability or 
        asset or class of capabilities or assets;
            (6) a remediation plan identifying corrective actions and 
        any resulting issues or risks; and
            (7) a description of how progress in the remediation plan 
        will be measured and monitored.
    (c) Substantial Variances in Costs or Schedule.--If a likely cost 
overrun is greater than 20 percent or a likely delay is greater than 12 
months from the costs and schedule described in the acquisition program 
baseline for any Level 1 or Level 2 acquisition program or project of 
the Coast Guard, the Commandant shall include in the report a written 
certification, with a supporting explanation, that--
            (1) the capability or asset or capability or asset class to 
        be acquired under the program or project is essential to the 
        accomplishment of Coast Guard missions;
            (2) there are no alternatives to such capability or asset 
        or capability or asset class which will provide equal or 
        greater capability in both a more cost-effective and timely 
        manner;
            (3) the new acquisition schedule and estimates for total 
        acquisition cost are reasonable; and
            (4) the management structure for the acquisition program is 
        adequate to manage and control performance, cost, and schedule.

SEC. 211. REPORT ON FORMER COAST GUARD OFFICIALS EMPLOYED BY 
              CONTRACTORS TO THE AGENCY.

    (a) Report Required.--Not later than December 31, 2009, and 
annually thereafter, the Comptroller General of the United States shall 
submit a report to the appropriate congressional committees on the 
employment during the preceding year by Coast Guard contractors of 
individuals who were Coast Guard officials in the previous 5-year 
period. The report shall assess the extent to which former Coast Guard 
officials were provided compensation by Coast Guard contractors in the 
preceding calendar year.
    (b) Objectives of Report.--At a minimum, the report required by 
this section shall assess the extent to which former Coast Guard 
officials who receive compensation from Coast Guard contractors have 
been assigned by those contractors to work on contracts or programs 
between the contractor and the Coast Guard, including contracts or 
programs for which the former official personally had oversight 
responsibility or decision-making authority when they served in or 
worked for the Coast Guard.
    (c) Confidentiality Requirement.--The report required by this 
subsection shall not include the names of the former Coast Guard 
officials who receive compensation from Coast Guard contractors.
    (d) Access to Information.--A Coast Guard contractor shall provide 
the Comptroller General access to information requested by the 
Comptroller General for the purpose of conducting the study required by 
this section.
    (e) Definitions.--In this section:
            (1) Coast guard contractor.--The term ``Coast Guard 
        contractor'' includes any person that received at least 
        $10,000,000 in contractor awards from the Coast Guard in the 
        calendar year covered by the annual report.
            (2) Coast guard official.--The term ``Coast Guard 
        official'' includes former officers of the Coast Guard who were 
        compensated at a rate of pay for grade O-7 or above during the 
        calendar year prior to the date on which they separated from 
        the Coast Guard, and former civilian employees of the Coast 
        Guard who served at any level of the Senior Executive Service 
        under subchapter VIII of chapter 53 of title 5, United States 
        Code, during the calendar year prior to the date on which they 
        separated from the Coast Guard.

SEC. 212. DEPARTMENT OF DEFENSE CONSULTATION.

    (a) In General.--The Commandant shall make arrangements as 
appropriate with the Secretary of Defense for support in contracting 
and management of Coast Guard acquisition programs. The Commandant 
shall also seek opportunities to make use of Department of Defense 
contracts, and contracts of other appropriate agencies, to obtain the 
best possible price for capabilities and assets acquired for the Coast 
Guard.
    (b) Inter-Service Technical Assistance.--The Commandant 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 Requirement Approval Procedures.--The Coast Guard 
Chief Acquisition Officer shall adopt, to the extent practicable, 
procedures that are similar to those used by the senior procurement 
executive of the Department of the Navy 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 Level 1 and 
        Level 2 acquisitions;
            (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 Level 1 or 
        Level 2 acquisitions in order to obtain the best possible 
        price.

                    TITLE III--COAST GUARD PERSONNEL

SEC. 301. 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 Chief Acquisition Officer.--There shall be 
in the Coast Guard a Chief Acquisition 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 Acquisition Officer shall 
serve at the Assistant Commandant level and have acquisition management 
as that individual's primary duty.
    ``(b) Qualifications.--
            ``(1) The Chief Acquisition Officer and any Flag Officer 
        serving in the Acquisitions Directorate shall be an acquisition 
        professional with a program manager level III certification and 
        must have at least 10 years experience in an acquisition 
        position, of which at least 4 years were spent in one of the 
        following qualifying positions:
                    ``(A) Program executive officer.
                    ``(B) Program manager of a Level 1 or Level 2 
                acquisition.
                    ``(C) Deputy program manager of a Level 1 or Level 
                2 acquisition.
                    ``(D) Project manager for a Level 1 or Level 2 
                acquisition.
                    ``(E) Any other acquisition position of significant 
                responsibility in which the primary duties are 
                supervisory or management duties.
            ``(2) The Commandant shall periodically publish a list of 
        the positions designated under this subsection.
    ``(c) Authority and Functions of the Chief Acquisition Officer.--
The functions of the Chief Acquisition Officer shall include--
            ``(1) monitoring the performance of programs and projects 
        on the basis of applicable performance measurements and 
        advising the Commandant, through the chain of command, 
        regarding the appropriate business strategy to achieve the 
        missions of the Coast Guard;
            ``(2) maximizing the use of full and open competition at 
        the prime contract and subcontract levels in the acquisition of 
        property, capabilities, assets, 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, capability, asset, 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) 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 acquisition workforce;
            ``(7) 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;
            ``(8) developing strategies and specific plans for hiring, 
        training, and professional development; and
            ``(9) reporting to the Commandant, through the chain of 
        command, on the progress made in improving acquisition 
        management capability.''.
    (b) Application of Qualification Requirement.--Section 55(b) of 
title 14, 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) Elevation of Disputes to the Chief Acquisition Officer.--Within 
45 days after the elevation to the Chief Acquisition Officer of any 
design or other dispute regarding a Level 1 or Level 2 acquisition, the 
Commandant 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.
    (e) Special Rate Supplements.--
            (1) Requirement to establish.--Not later than 1 year after 
        the date of enactment of this Act and in accordance with part 
        9701.333 of title 5, Code of Federal Regulations, the 
        Commandant 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. 302. IMPROVEMENTS IN COAST GUARD ACQUISITION MANAGEMENT.

    (a) Program and Project Managers.--An individual may not be 
assigned as the program manager for a Level 1 or Level 2 acquisition 
unless the individual holds a Level III acquisition certification as a 
program manager.
    (b) 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.
    (c) Technical Authority.--The Commandant shall maintain or 
designate the technical authority to establish, approve, and maintain 
technical requirements. Any such designation shall be made in writing 
and may not be delegated to the authority of the Chief Acquisition 
Officer established by section 55 of title 14, United States Code.
    (d) Designation of Positions in the Acquisition Workforce.--
            (1) In general.--The Commandant shall designate a 
        sufficient number of positions to be in the Coast Guard's 
        acquisition workforce to perform acquisition-related functions 
        at Coast Guard headquarters and field activities.
            (2) Required positions.--In designating positions under 
        subsection (a), the Commandant shall include, at a minimum, 
        positions encompassing the following competencies and 
        functions:
                    (A) Program management.
                    (B) Systems planning, research, development, 
                engineering, and testing.
                    (C) Procurement, including contracting.
                    (D) Industrial and contract property management.
                    (E) Life-cycle logistics.
                    (F) Quality control and assurance.
                    (G) Manufacturing and production.
                    (H) Business, cost estimating, financial 
                management, and auditing.
                    (I) Acquisition education, training, and career 
                development.
                    (J) Construction and facilities engineering.
                    (K) Testing and evaluation.
            (3) Acquisition management headquarter activities.--The 
        Commandant shall also designate as positions in the acquisition 
        workforce under paragraph (1) those acquisition-related 
        positions located at Coast Guard headquarters units.
            (4) Appropriate expertise required.--The Commandant shall 
        ensure that each individual assigned to a position in the 
        acquisition workforce has the appropriate expertise to carry 
        out the responsibilities of that position.
    (e) Management Information System.--
            (1) In general.--The Commandant shall establish a 
        management information system capability to improve acquisition 
        workforce management and reporting.
            (2) Information maintained.--Information maintained with 
        such capability shall include the following standardized 
        information on individuals assigned to positions in the 
        workforce:
                    (A) Qualifications, assignment history, and tenure 
                of those individuals assigned to positions in the 
                acquisition workforce or holding acquisition-related 
                certifications.
                    (B) Promotion rates for officers and members of the 
                Coast Guard in the acquisition workforce.
    (f) Report on Adequacy of Acquisition Workforce.--
            (1) In general.--The Commandant shall report to the 
        Congress by July 1 of each year on the scope of the acquisition 
        activities to be performed in the next fiscal year and on the 
        adequacy of the current acquisition workforce to meet that 
        anticipated workload.
            (2) Contents.--The report shall--
                    (A) specify the number of officers, members, and 
                employees of the Coast Guard currently and planned to 
                be assigned to each position designated under 
                subsection (d); and
                    (B) identify positions that are understaffed to 
                meet the anticipated acquisition workload, and actions 
                that will be taken to correct such understaffing.
    (g) Appointments to Acquisition Positions.--The Commandant shall 
ensure that no requirement or preference for officers or members of the 
Coast Guard is used in the consideration of persons for positions in 
the acquisition workforce.
    (h) Career Paths.--
            (1) Identification of career paths.--To establish 
        acquisition management as a core competency of the Coast Guard, 
        the Commandant shall--
                    (A) ensure that career paths for officers, members, 
                and employees of the Coast Guard who wish to pursue 
                careers in acquisition are identified in terms of the 
                education, training, experience, and assignments 
                necessary for career progression of those officers, 
                members, and employees to the most senior positions in 
                the acquisition workforce; and
                    (B) publish information on such career paths.
            (2) Promotion parity.--The Commandant shall ensure that 
        promotion parity is established for officers and members of the 
        Coast Guard who have been assigned to the acquisition workforce 
        relative to officers and members who have not been assigned to 
        the acquisition workforce.
    (i) Balanced Workforce Policy.--In the development of acquisition 
workforce policies under this section with respect to any civilian 
employees or applicants for employment, the Commandant shall, 
consistent with the merit system principles set out in paragraphs (1) 
and (2) of section 2301(b) of title 5, United States Code, take into 
consideration the need to maintain a balanced workforce in which women 
and members of racial and ethnic minority groups are appropriately 
represented in Government service.
    (j) Guidance on Tenure and Accountability of Program Managers.--
            (1) Issuance of guidance.--Not later than 1 year after the 
        date of enactment of this Act, the Commandant shall issue 
        guidance to address the qualifications, resources, 
        responsibilities, tenure, and accountability of program 
        managers for the management of acquisition programs and 
        projects. The guidance shall address, at a minimum--
                    (A) the qualifications that shall be required of 
                program managers, including the number of years of 
                acquisition experience and the professional training 
                levels to be required of those appointed to program 
                management positions;
                    (B) authorities available to program managers, 
                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 acquisition program; and
                    (C) the extent to which a program manager who 
                initiates a new program or project will continue in 
                management of that program or project 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 Commandant 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 individuals who 
                        are or may become program managers, including 
                        the rotational assignments that will be 
                        provided to program managers;
                            (ii) the provision of enhanced training and 
                        educational opportunities for individuals who 
                        are or may become 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, and 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 acquisition 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 
                        acquisition 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.

SEC. 303. RECOGNITION OF COAST GUARD PERSONNEL FOR EXCELLENCE IN 
              ACQUISITION.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Commandant shall commence implementation of 
a program to recognize excellent performance by individuals and teams 
comprised of officers, members, and employees of the Coast Guard that 
contributed to the long-term success of a Coast Guard acquisition 
program or project.
    (b) Elements.--The program required by subsection (a) shall include 
the following:
            (1) Specific award categories, criteria, and eligibility 
        and manners of recognition.
            (2) Procedures for the nomination by personnel of the Coast 
        Guard of individuals and teams comprised of officers, members, 
        and employees of the Coast Guard for recognition under the 
        program.
            (3) Procedures for the evaluation of nominations for 
        recognition under the program by one or more panels of 
        individuals from the Government, academia, and the private 
        sector who have such expertise and are appointed in such manner 
        as the Commandant shall establish for the purposes of this 
        program.
    (c) Award of Cash Bonuses.--As part of the program required by 
subsection (a), the Commandant, subject to the availability of 
appropriations, may award to any individual recognized pursuant to the 
program a cash bonus to the extent that the performance of such 
individual so recognized warrants the award of such bonus.

SEC. 304. ENHANCED STATUS QUO OFFICER PROMOTION SYSTEM.

    Chapter 11 of title 14, United States Code, is amended--
            (1) in section 253(a)--
                    (A) by inserting ``and'' after ``considered,''; and
                    (B) by striking ``, and the number of officers the 
                board may recommend for promotion'';
            (2) in section 258--
                    (A) by inserting ``(a) In General.--'' before the 
                existing text;
                    (B) in subsection (a) (as so designated) by 
                striking the colon at the end of the material preceding 
                paragraph (1) and inserting ``--''; and
                    (C) by adding at the end the following:
    ``(b) Provision of Direction and Guidance.--
            ``(1) In addition to the information provided pursuant to 
        subsection (a), the Commandant may furnish the selection 
        board--
                    ``(A) specific direction relating to the needs of 
                the Coast Guard for officers having particular skills, 
                including direction relating to the need for a minimum 
                number of officers with particular skills within a 
                specialty; and
                    ``(B) any other guidance that the Commandant 
                believes may be necessary to enable the board to 
                properly perform its functions.
            ``(2) Selections made based on the direction and guidance 
        provided under this subsection shall not exceed the maximum 
        percentage of officers who may be selected from below the 
        announced promotion zone at any given selection board convened 
        under section 251 of this title.'';
            (3) in section 259(a), by inserting after ``whom the 
        board'' the following: ``, giving due consideration to the 
        needs of the Coast Guard for officers with particular skills so 
        noted in specific direction furnished to the board by the 
        Commandant under section 258 of this title,''; and
            (4) in section 260(b), by inserting after ``qualified for 
        promotion'' the following: ``to meet the needs of the service 
        (as noted in specific direction furnished the board by the 
        Commandant under section 258 of this title)''.

SEC. 305. COAST GUARD ACQUISITION WORKFORCE EXPEDITED HIRING AUTHORITY.

    (a) In General.--For purposes of sections 3304, 5333, and 5753 of 
title 5, United States Code, the Commandant may--
            (1) designate any category of acquisition positions within 
        the Coast Guard as shortage category positions; and
            (2) use the authorities in such sections to recruit and 
        appoint highly qualified persons directly to positions so 
        designated.
    (b) Limitation.--The Commandant may not appoint a person to a 
position of employment under this subsection after September 30, 2012.

            Passed the House of Representatives July 29, 2009.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.