[Congressional Record (Bound Edition), Volume 153 (2007), Part 27]
[Senate]
[Pages 36312-36317]
[From the U.S. Government Publishing Office, www.gpo.gov]




                INTEGRATED DEEPWATER PROGRAM REFORM ACT

  Mr. REID. Mr. President, I ask unanimous consent that the Senate 
proceed to Calendar No. 171, S. 924.
  The ACTING PRESIDENT pro tempore. The clerk will report the bill by 
title.
  The legislative clerk read as follows:

       A bill (S. 924) to strengthen the United States Coast 
     Guard's Integrated Deepwater Program.

  There being no objection, the Senate proceeded to consider the bill 
which had been reported from the Committee on Commerce, Science and 
Transportation with an amendment to strike all after the enacting 
clause and insert in lieu thereof the following:

     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. Inspector General review of Deepwater program.
Sec. 10. 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 any delivery order or task order that was 
     issued to the lead systems integrator on or before 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 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) Awards to tier 1 subcontractors.--The Coast Guard may 
     award to any Tier 1 subcontractor or subcontractor below the 
     Tier 1 level any procurement that it could award to a lead 
     systems integrator under paragraph (1).
       (3) 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 in a subcontractor 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;

[[Page 36313]]

       (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 justifications 
     of FAR 6.3 are met.

     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, or a procurement for which a request for proposals 
     consistent with the FAR has been issued before the date of 
     enactment 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.--As soon as possible, but no 
     later than 120 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) for 
     procurements and feasible alternatives shall include--
       (1) an examination of capability, interoperability, and 
     other advantages and disadvantages;
       (2) an evaluation of whether different quantities of 
     specific assets could meet the Coast Guard's overall 
     performance needs;
       (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;
       (5) an evaluation of safety and performance records; and
       (6) 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, as well as procurements described in subsection (a) 
     for which no analysis of alternatives is required, and shall 
     transmit a report describing the plan, and the schedule and 
     costs for delivery of such procurements 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.--After the date of enactment of this Act, a 
     contract, delivery order, or task order exceeding $10,000,000 
     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 to the maximum 
     extent practicable 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) funding is available to execute the contract, delivery 
     order, or task order; and
       (7) the technology complies with all relevant policies, 
     regulations, and directives of the Coast Guard.
       (b) Limitation.--Nothing in this section shall prevent the 
     Coast Guard from executing contracts or issuing deliver 
     orders or task orders, for research and development or 
     technology demonstrations under, or in support of, the 
     Integrated Deepwater Program.
       (c) 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) addresses 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 
     March 1, 2007, including the recommendation that any award or 
     incentive fee be tied to program outcomes;
       (2) provides that certification of any Integrated Deepwater 
     Program procurement for performance, safety, and other 
     relevant factors determined by the Commandant will be 
     conducted by an independent third party;
       (3) does not include--
       (A) for any contract extending the existing Integrated 
     Deepwater Program contract term that expires in June, 2007, 
     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;
       (4) for any contract extending the existing Integrated 
     Deepwater Program contract term that expires in June, 2007, 
     is reviewed by, and addresses recommendations made by, the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics through the Defense Acquisition University in its 
     Quick Look Study dated February 5, 2007; and
       (5) meets the requirements of the Systems Acquisition 
     Manual.

     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.

[[Page 36314]]

       (d) Patrol Boat Report.--Not later than 90 days after the 
     date of enactment of this Act the Commandant shall submit to 
     the Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives 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 2008 through 
     fiscal year 2014. The report shall include--
       (1) a summary of the patrol hours that will be lost due to 
     delays in replacing the 110-foot cutters and reduced 
     capabilities of the 110-foot cutters that have been 
     converted;
       (2) an identification of assets that may be used to 
     alleviate the annual readiness gap of lost time for such 
     patrol boats;
       (3) a projection of the remaining operational lifespan of 
     the 110-foot patrol boat fleet;
       (4) a description of how extending through fiscal year 2014 
     the transfer agreement between the Coast Guard and the United 
     States Navy for 5 Cyclone class 179-foot patrol coastal ships 
     would effect the annual readiness gap of lost time for 110-
     foot patrol boats; and
       (5) an estimate of the cost to extend the operational 
     lifespan of the 110-foot patrol boat fleet for each of fiscal 
     years 2008 through 2014.

     SEC. 8. GAO REVIEW AND RECOMMENDATIONS.

       (a) Award Fee and Award Term Criteria.--The Coast Guard 
     shall consult with the Comptroller General no later than June 
     1, 2007 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 March 1, 2007, with respect to award fee and 
     award term criteria will be addressed to the maximum extent 
     practicable in any contract, delivery order, or task order or 
     extension of the existing contract for procurement under or 
     in support of the Integrated Deepwater Program entered into 
     after the date of enactment of this Act.
       (b) Other Recommendations.--The Commandant shall ensure 
     that all other recommendations in that report, and any 
     subsequent recommendations issued before March 1, 2007, 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 provisions of this Act, 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 March 1, 2007.

     SEC. 9. INSPECTOR GENERAL REVIEW OF DEEPWATER PROGRAM.

       Not later than 240 days after the date of the enactment of 
     this Act, the Inspector General of the Department of Homeland 
     Security shall submit to the Secretary, and to Congress, a 
     report on the acquisition of assets under the Deepwater 
     program. The report shall include--
       (1) a description of each decision, if any, of the Coast 
     Guard or Integrated Coast Guard Systems relating to the 
     acquisition of assets under the Deepwater program that 
     directly or indirectly resulted in cost overruns or program 
     cost increases to the United States;
       (2) an assessment whether any decision covered by paragraph 
     (1) violated the terms of the contract of Integrated Coast 
     Guard Systems for the Deepwater program;
       (3) an assessment of how much program costs under the 
     Deepwater program have increased as a result of any such 
     decision; and
       (4) an assessment of whether the Coast Guard or Integrated 
     Coast Guard Systems is responsible for the payment of any 
     cost overruns associated with any such decision.

     SEC. 10. 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.
   Mr. REID. I ask unanimous consent that the Cantwell amendment to the 
committee substitute which is at the desk be agreed to; the committee 
substitute, as amended, be agreed to; the bill, as amended, be read a 
third time and passed; the motion to reconsider be laid upon the table 
with no intervening action or debate; and any statements relating to 
this matter be printed in the Record.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  The amendment (No. 3884) was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The bill (S. 924), as amended, was ordered to be engrossed for a 
third reading, was read the third time and passed, as follows:

                                 S. 924

       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. Alternatives Analysis.
Sec. 4. Certification.
Sec. 5. Contract requirements.
Sec. 6. Improvements in Coast Guard management.
Sec. 7. Department of Defense Consultation.
Sec. 8. Procurement and report requirements.
Sec. 9. GAO review and recommendations.
Sec. 10. Inspector General review of Deepwater program.
Sec. 11. 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 more than 90 days 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, unless otherwise excepted in 
     accordance with the Competition in Contracting Act of 1984 
     and the Federal Acquisition Regulations.
       (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 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 procurements after the date that is 90 days after 
     the date of enactment of this Act of, or in support of--
       ``(i) the HC-130J aircraft, the HH-65 aircraft, and the 
     C4ISR system, and
       (ii) 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 procurements; and
       (C) for the procurement, or in support, of additional 
     National Security Cutters or Maritime Patrol Aircraft if the 
     Commandant determines, after conducting the alternatives 
     analysis required by section 3, that--
       (i) the procurement is in accordance with the Competition 
     in Contracting Act of 1984 and the Federal Acquisition 
     Regulations;
       (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) Awards to tier 1 subcontractors.--The Coast Guard may 
     award to any Tier 1 subcontractor or subcontractor below the 
     Tier 1 level any procurement that it could award to a lead 
     systems integrator under paragraph (1).
       (3) Report on decision-making process.--If the Commandant 
     determines under subparagraph (B) or C) of paragraph (1) that 
     the Coast Guard will use a private sector lead systems 
     integrator for a procurement, the Commandant shall notify in 
     writing the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure of its determination and 
     shall provide a detailed 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 in a subcontractor below the tier 1 
     subcontractor level unless--

[[Page 36315]]

       (1) the subcontractor 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;
       (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 the Competition in 
     Contracting Act of 1984 and the Federal Acquisition 
     Regulations.
       (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) or (C).

     SEC. 3. ALTERNATIVES ANALYSIS.

       (a) In General.--Except with respect to a procurement 
     described in subparagraph (A) or (B) of section 2(b)(1) of 
     this Act, or a procurement for which a request for proposals 
     consistent with the Federal Acquisition Regulations has been 
     issued before the date of enactment of this Act, no 
     procurement of a major asset may be awarded under the 
     Integrated Deepwater Program after the date of enactment of 
     this Act until an alternatives analysis has been conducted 
     under this section.
       (b) Independent Analysis.--As soon as possible, but no 
     later than 120 days after the date of enactment of this Act, 
     the Commandant shall execute a contract for an alternatives 
     analysis with 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 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 alternatives analysis provided pursuant 
     to the contract under subsection (b) for procurements and 
     feasible alternatives shall include--
       (1) an examination of capability, interoperability, and 
     other advantages and disadvantages;
       (2) an evaluation of whether different quantities of 
     specific assets could meet the Coast Guard's overall 
     performance needs;
       (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;
       (5) an evaluation of safety and performance records;
       (6) a calculation of costs, including life-cycle costs; and
       (7) a business case of viable alternatives.
       (d) Report to Congress.--As soon as possible after an 
     alternatives analysis has been completed, the Commandant 
     shall develop a plan for the procurements addressed in the 
     analysis, as well as procurements described in subsection (a) 
     for which no alternatives analysis is required, and shall 
     transmit a report describing the plan, and the schedule and 
     costs for delivery of such procurements to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure.
       (e) Experimental, Technically Immature Systems.--
       (1) In general.--No procurement of an experimental or 
     technically immature major asset may be awarded under the 
     Integrated Deepwater Program until an alternatives analysis 
     has been conducted for such asset. The alternatives analysis 
     shall include the same components as those set forth in 
     subsection (c). In addition, the alternatives analysis shall 
     also include--
       (A) an examination of likely research and 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;
       (E) 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
       (F) such additional measures the Commandant determines to 
     be necessary for appropriate evaluation of the asset.
       (2) Report.--As soon as possible after an alternatives 
     analysis pursuant to this subsection has been completed, the 
     Commandant shall transmit a report that provides a detailed 
     summary of the findings of the analysis, a plan for the 
     procurements addressed in the analysis, and the schedule and 
     costs for delivery of such procurements to the Senate 
     Committee on Commerce, Justice, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure.

     SEC. 4. CERTIFICATION.

       (a) In General.--After the date of enactment of this Act, a 
     contract, delivery order, or task order exceeding $10,000,000 
     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 to the maximum 
     extent practicable 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) funding is available to execute the contract, delivery 
     order, or task order; and
       (7) the technology complies with all relevant policies, 
     regulations, and directives of the Coast Guard.
       (b) Limitation.--Nothing in this section shall prevent the 
     Coast Guard 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.
       (c) 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 
     after the date of enactment of this Act--
       (1) addresses 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, 
     including the recommendation that any award or incentive fee 
     be tied to program outcomes;
       (2) addresses any subsequent Government Accountability 
     Office recommendations that are issued at least 30 days prior 
     to the execution of the contract, delivery order or task 
     order when such recommendations are relevant to the contract 
     terms;
       (3) provides that certification of any Integrated Deepwater 
     Program procurement for performance, safety, and other 
     relevant factors determined by the Commandant will be 
     conducted by an independent third party;
       (4) does not include--
       (A) provisions that commit the Coast Guard without express 
     written approval by the Coast Guard; or
       (B) any provision allowing for equitable adjustment that 
     differs from the Federal Acquisition Regulations;
       (5) meets the requirements of the Coast Guard Major Systems 
     Acquisition COMDTINST Manual 5000.10(series); and
       (6) for any contract, contract modification, or award term 
     extending the existing Integrated Deepwater Program contract 
     term--
       (A) is reviewed by, and addresses recommendations made by, 
     the Under Secretary of Defense for Acquisition, Technology, 
     and Logistics through the Defense Acquisition University in 
     its Quick Look Study dated February 5, 2007; and
       (B) does not include any minimum requirements for the 
     purchase of a given or determinable number of specific 
     assets.

     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

[[Page 36316]]

       (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. DEPARTMENT OF DEFENSE CONSULTATION.

       (a) In General.--The Coast Guard shall make arrangements as 
     appropriate with the Department of Defense for support in 
     contracting and management of procurements 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. No later than one year after the date of 
     enactment of this Act, the Commandant of the Coast Guard 
     shall provide a report to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure on agreements 
     and other arrangements concluded pursuant to this subsection.
       (b) Assessment.--Within 180 days after the date of 
     enactment of this Act, the Comptroller General shall transmit 
     a report to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure that--
       (1) contains an assessment of current Coast Guard 
     acquisition and management capabilities to manage 
     procurements 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. 8. PROCUREMENT AND REPORT REQUIREMENTS.

       (a) Procurement Schedules.--
       (1) Budget justification documents.--Each calendar year, 
     not later than 45 days after the President submits the budget 
     to Congress under section 1105 of title 31, United States 
     Code, the Commandant shall submit to Congress budget 
     justification documents regarding development and procurement 
     schedules for each asset of the Integrated Deepwater Program 
     for which any funds for procurement are requested in that 
     budget.
       (2) Required documents.--The budget justification documents 
     required to be submitted under paragraph (1) for each asset 
     for which funds for procurement are requested in the budget 
     include--
       (A) the development schedule for each asset and asset 
     class, including estimated annual costs until development is 
     completed;
       (B) the procurement schedule for each asset and asset 
     class, including estimated annual costs and units to be 
     procured until procurement is completed;
       (C) any variances in schedule or cost from the schedule and 
     costs described in the plan submitted under section 3(d); and
       (D) a projection of the remaining operational lifespan of 
     each legacy asset and projected costs for sustaining such 
     assets.
       (b) Quarterly Status Update.--The Commandant shall provide 
     an update on the status of the Integrated Deepwater Program 
     to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure at the beginning of the 
     first full fiscal year quarter after the date of enactment of 
     this Act, and at the beginning of each subsequent fiscal year 
     quarter.
       (c) Reporting on Cost Overruns and Delays.--
       (1) Report required.--The Commandant shall submit a report 
     to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure as soon as possible, but 
     not later than 30 days after the Deepwater Program Executive 
     Officer becomes aware of--
       (A) a likely cost overrun greater than 10 percent of the 
     program acquisition unit cost, the procurement unit cost, or 
     the life cycle cost of an individual asset or a class of 
     assets under the Integrated Deepwater Program; or
       (B) a likely delay of more than 6 months in the delivery 
     schedule for any individual asset or class of assets under 
     the Integrated Deepwater Program.
       (2) Required content.--The report shall include--
       (A) a detailed explanation for the variance or delay;
       (B) the current program acquisition unit cost and the 
     complete history of changes to that cost from the schedule 
     and costs described in the plan submitted under section 3(d);
       (C) the current procurement unit cost and the complete 
     history of changes to that cost from the schedule and costs 
     described in the plan submitted under section 3(d); and
       (D) a full life-cycle cost analysis for each asset or class 
     of assets for which a report is being submitted under 
     paragraph (1).
       (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 plan submitted under section 3(d) or, if the 
     plan has been revised, from the schedule and costs described 
     in the revised plan, the Commandant shall include in the 
     report required under paragraph (1) 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 a more 
     cost-effective and timely manner;
       (C) the new estimates of the program acquisition unit cost 
     or procurement unit cost are reasonable; and
       (D) the management structure for the acquisition program is 
     adequate to manage and control program acquisition unit cost 
     or procurement unit cost.
       (4) Certified assets and asset classes.--If the Commandant 
     certifies an asset or asset class under paragraph (3), the 
     requirements of this subsection shall be based on the new 
     estimates of cost and schedule contained in that 
     certification.
       (5) Definitions.--In this subsection:
       (A) 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.
       (B) Procurement unit cost.--The term ``procurement unit 
     cost'' means the amount equal to the total of all funds 
     programmed to be available for obligation for procurement of 
     a given asset class divided by the number of assets to be 
     procured.
       (C) Program acquisition unit cost.--The term ``program 
     acquisition unit cost'' means the amount equal to the total 
     cost for development, procurement, and construction for each 
     class of assets divided by the total number of assets in each 
     class.
       (d) Patrol Boat Report.--Not later than 90 days after the 
     date of enactment of this Act the Commandant shall submit to 
     the Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives 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 2008 through 
     fiscal year 2014. The report shall include--
       (1) a summary of the patrol hours that will be lost due to 
     delays in replacing the 110-foot cutters and reduced 
     capabilities of the 110-foot cutters that have been 
     converted;
       (2) an identification of assets that may be used to 
     alleviate the annual readiness gap of lost time for such 
     patrol boats;
       (3) a projection of the remaining operational lifespan of 
     the 110-foot patrol boat fleet;
       (4) a description of how extending through fiscal year 2014 
     the transfer agreement between the Coast Guard and the United 
     States Navy for 5 Cyclone class 179-foot patrol coastal ships 
     would effect the annual readiness gap of lost time for 110-
     foot patrol boats; and
       (5) an estimate of the cost to extend the operational 
     lifespan of the 110-foot patrol boat fleet for each of fiscal 
     years 2008 through 2014.
       (e) Report on C4ISR.--Not later than 90 days after the date 
     of enactment of this Act, the Commandant shall submit to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure a report on the manner in which the Coast 
     Guard is resolving the problems and responding to the 
     recommendations contained in the August 2006 Department of 
     Homeland Security Inspector General Report entitled 
     Improvements Needed in the Coast Guard's Acquisition and 
     Implementation of Deepwater Information Technology Systems.

[[Page 36317]]

       (f) 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. 9. GAO REVIEW AND RECOMMENDATIONS.

       (a) Award Fee and Award Term Criteria.--The Coast Guard 
     shall consult 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 with respect to award 
     fee and award term criteria will be addressed to the maximum 
     extent practicable in any contract, delivery order, or task 
     order or extension of the existing contract for procurement 
     under or in support of the Integrated Deepwater Program 
     entered into after the date of enactment of this Act.
       (b) Other Recommendations.--The Commandant shall ensure 
     that all other recommendations in that report, and any 
     subsequent recommendations issued before March 1, 2007, are 
     implemented to the maximum extent practicable by the Coast 
     Guard within 1 year after the date of enactment of this Act, 
     and implement subsequent recommendations to the maximum 
     extent practicable as they arise.
       (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 provisions of this Act, 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 March 1, 2007.

     SEC. 10. INSPECTOR GENERAL REVIEW OF DEEPWATER PROGRAM.

       Not later than 240 days after the date of the enactment of 
     this Act, the Inspector General of the Department of Homeland 
     Security shall submit to the Secretary, and to Congress, a 
     report on the acquisition of assets under the Deepwater 
     program. The report shall include--
       (1) a description of each decision, if any, of the Coast 
     Guard or Integrated Coast Guard Systems relating to the 
     acquisition of assets under the Deepwater program that 
     directly or indirectly resulted in cost overruns or program 
     cost increases to the United States;
       (2) an assessment whether any decision covered by paragraph 
     (1) violated the terms of the contract of Integrated Coast 
     Guard Systems for the Deepwater program;
       (3) an assessment of how much program costs under the 
     Deepwater program have increased as a result of any such 
     decision; and
       (4) an assessment of whether the Coast Guard or Integrated 
     Coast Guard Systems is responsible for the payment of any 
     cost overruns associated with any such decision.

     SEC. 11. 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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