Chapter 11 · Acquisitions
Subchapter II · Improved acquisition process and procedures
1131Identification of major system acquisitions#
(a)
(1)The Commandant shall develop and implement mechanisms to support the establishment of mature and stable operational requirements for all acquisitions.
(2)The Commandant may not initiate a Level 1 or Level 2 acquisition project or program until the Commandant—
(A)completes a mission analysis that—
(i)identifies the specific capability gaps to be addressed by the project or program; and
(ii)develops a clear mission need to be addressed by the project or program; and
(B)prepares a preliminary affordability assessment for the project or program.
(b)
(1)The mechanisms required by subsection (a) shall ensure the implementation of a formal process for the development of a mission-needs statement, concept-of-operations document, capability development plan, and resource proposal for the initial project or program funding, and shall ensure the project or program is included in the Coast Guard Capital Investment Plan.
(2)In conducting an affordability assessment under subsection (a)(2)(B), the Commandant shall develop and implement mechanisms to ensure that trade-offs among cost, schedule, and performance are considered in the establishment of preliminary operational requirements for development and production of new assets and capabilities for Level 1 and Level 2 acquisitions projects and programs.
(c)The Commandant shall develop staffing predictions, define human capital performance initiatives, and identify preliminary training needs required to implement each Level 1 and Level 2 acquisition project and program.
1132Acquisition#
(a)The Commandant may not establish a Level 1 or Level 2 acquisition project or program until the Commandant—
(1)clearly defines the operational requirements for the project or program;
(2)establishes the feasibility of alternatives;
(3)develops an acquisition project or program baseline;
(4)produces a life-cycle cost estimate; and
(5)assesses the relative merits of alternatives to determine a preferred solution in accordance with the requirements of this section.
(b)Any Coast Guard Level 1 or Level 2 acquisition project or program 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 or asset to be acquired under the proposed acquisition project or program.
(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 project or program baseline and acquisition unit cost for the capability or asset to be acquired under the project or program.
(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.
(c)
(1)The Coast Guard may not acquire an experimental or technically immature capability or asset or implement a Level 1 or Level 2 acquisition project or program, unless it has prepared an analysis of alternatives for the capability or asset to be acquired in the concept and technology development phase of the acquisition process for the capability or asset.
(2)The analysis of alternatives shall be prepared 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 and has no financial interest in any part of the acquisition project or program that is the subject of the analysis. At a minimum, the analysis of alternatives shall include—
(A)an assessment of the technical maturity of the capability or asset, and technical and other risks;
(B)an examination of capability, interoperability, and other advantages and disadvantages;
(C)an evaluation of whether different combinations or quantities of specific assets or capabilities could meet the Coast Guard’s overall performance needs;
(D)a discussion of key assumptions and variables, and sensitivity to change in such assumptions and variables;
(E)when an alternative is an existing capability, asset, or prototype, an evaluation of relevant safety and performance records and costs;
(F)a calculation of life-cycle costs including—
(i)an examination of likely research and development costs and the levels of uncertainty associated with such estimated costs;
(ii)an examination of likely production and deployment costs and the levels of uncertainty associated with such estimated costs;
(iii)an examination of likely operating and support costs and the levels of uncertainty associated with such estimated costs;
(iv)if they are likely to be significant, an examination of likely disposal costs and the levels of uncertainty associated with such estimated costs; and
(v)such additional measures as the Commandant or the Secretary of the department in which the Coast Guard is operating determines to be necessary for appropriate evaluation of the capability or asset; and
(G)the business case for each viable alternative.
(d)
(1)For any Level 1 or Level 2 acquisition project or program the Chief Acquisition Officer must approve a test and evaluation master plan specific to the acquisition project or program for the capability, asset, or subsystems of the capability or asset and intended to minimize technical, cost, and schedule risk as early as practicable in the development of the project or program.
(2)The master plan shall—
(A)set forth an integrated test and evaluation strategy that will verify that capability-level or asset-level and subsystem-level design and development, including performance and supportability, have been sufficiently proven before the capability, asset, or subsystem 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)At a minimum, the master plan shall identify—
(A)the key performance parameters to be resolved through the integrated test and evaluation strategy;
(B)the performance data to be used to determine whether the key performance parameters have been resolved;
(C)critical operational issues to be assessed in addition to the key performance parameters;
(D)the results during test and evaluation that will be required to demonstrate that a capability, asset, or subsystem meets performance requirements;
(E)specific development test and evaluation phases and the scope of each phase;
(F)modeling and simulation activities to be performed, if any, and the scope of such activities;
(G)early operational assessments to be performed, if any, and the scope of such assessments;
(H)operational test and evaluation phases;
(I)an estimate of the resources, including funds, that will be required for all test, evaluation, assessment, modeling, and simulation activities; and
(J)the Government entity or independent entity that will perform the test, evaluation, assessment, modeling, and simulation activities.
(4)The Chief Acquisition Officer must approve an updated master plan whenever there is a revision to project or program test and evaluation strategy, scope, or phasing.
(5)The Coast Guard may not—
(A)proceed beyond that phase of the acquisition process that entails approving the supporting acquisition of a capability or asset before the master plan is approved by the Chief Acquisition Officer; or
(B)award any production contract for a capability, asset, or subsystem for which a master plan is required under this subsection before the master plan is approved by the Chief Acquisition Officer.
(e)
(1)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 or more years, and to ensure that these estimates are considered in decisions to develop or produce new or enhanced capabilities and assets.
(2)For each Level 1 or Level 2 acquisition project or program, in addition to life-cycle cost estimates developed under paragraph (1), the Commandant shall require that—
(A)life-cycle cost estimates developed under paragraph (1) be updated before—
(i)each milestone decision is concluded; and
(ii)the project or program enters a new acquisition phase; and
(B)an independent cost estimate or independent cost assessment, as appropriate, be developed to validate life-cycle cost estimates developed under paragraph (1).
1133Preliminary development and demonstration#
(a)The Commandant shall ensure that developmental test and evaluation, operational test and evaluation, life-cycle cost estimates, and the development and demonstration requirements applied by this chapter to acquisition projects and programs are met to confirm that the projects or programs meet the requirements identified in the mission-analysis and affordability assessment prepared under section 1131(a)(2), the operational requirements developed under section 1132(a)(1) and the following development and demonstration objectives:
(1)To demonstrate that the design, manufacturing, and production solution is based upon a stable, producible, and cost-effective product design.
(2)To ensure that the product capabilities meet contract specifications, acceptable operational performance requirements, and system security requirements.
(3)To ensure that the product design is mature enough to commit to full production and deployment.
(b)
(1)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 subsystems of the capability or asset in accordance with the master plan prepared for the capability or asset under section 1132(d)(1).1
(2)The Commandant shall ensure that the Coast Guard uses independent third parties with expertise in testing and evaluating the capabilities or assets and the subsystems 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 master plan.
(3)The Commandant shall ensure that independent third parties and Government employees that identify safety concerns during developmental or operational tests and evaluations or through independent or Government-conducted design assessments of capabilities or assets and subsystems of capabilities or assets to be acquired by the Coast Guard communicate such concerns 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 subsystems concerned and to the Chief Acquisition Officer.
(4)The Commandant shall ensure that any safety concerns that have been communicated under paragraph (3) for an acquisition program or project are reported 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 concerns are corrected or mitigated. The report shall also include an explanation of the actions that will be taken to correct or mitigate the safety concerns, the date by which those actions will be taken, and the adequacy of current funding to correct or mitigate the safety concerns.
(5)The Commandant shall ensure that if an independent third party or a Government employee identifies a safety concern with a capability or asset or any subsystems of a capability or asset not previously identified during operational test and evaluation of a capability or asset already in low, initial, or full-rate production—
(A)the Commandant, through the Assistant Commandant for Capability, shall 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)the Deputy Commandant for Mission Support shall notify the Commandant and the Deputy Commandant for Operations of the safety concern within 50 days after the notification required under subparagraph (A), 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 subsystems 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 subsystems 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 subsystems of the capabilities or assets and in previously produced capabilities or assets and subsystems.
(c)
(1)The Commandant shall ensure that any Level 1 or Level 2 acquisition project or program is certified by the technical authority of the Coast Guard after review by an independent third party with capabilities in the mission area, asset, or particular asset component.
(2)The Commandant shall—
(A)cause all electronics on all aircraft, surface, and shore capabilities and assets that require TEMPEST certification to be tested in accordance with TEMPEST standards and communications security (comsec) standards by an independent third party that is authorized by the Federal Government to perform such testing; and
(B)certify that the assets meet all applicable TEMPEST requirements.
(3)
(A)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 the Coast Guard Authorization Act of 2010 to be classed by the American Bureau of Shipping before final acceptance.
[(B)Repealed. Pub. L. 112–213, title II, § 210(c)(2)(B), Dec. 20, 2012, 126 Stat. 1551.] (repealed)
(4)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.
(5)The Commandant shall cause all aircraft and aircraft engines acquired by the Coast Guard to be assessed for airworthiness by an independent third party with expertise in aircraft and aircraft engine certification before final acceptance.
1134Acquisition, production, deployment, and support#
(a)The Commandant shall—
(1)ensure there is a stable and efficient production and support capability to develop an asset or capability for the Coast Guard;
(2)conduct follow-on testing to confirm and monitor performance and correct deficiencies; and
(3)conduct acceptance tests and trials prior to the delivery of each asset or system to ensure the delivered asset or system achieves full operational capability.
(b)The Commandant shall—
(1)execute production contracts;
(2)ensure that delivered assets and capabilities meet operational cost and schedules requirements established in the acquisition program baseline;
(3)validate manpower and training requirements to meet system needs to operate, maintain, support, and instruct the assets or capabilities; and
(4)prepare an acquisition project or program transition plan to enter into programmatic sustainment, operations, and support.
1135Acquisition program baseline breach#
(a)The Commandant shall submit a report to the appropriate congressional committees and the Committee on Homeland Security of the House of Representatives 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 15 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)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)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 project or program of the Coast Guard, the Commandant shall include in the report a written determination, with a supporting explanation, of whether—
(1)the capability or asset or capability or asset class to be acquired under the project or program is essential to the accomplishment of Coast Guard missions;
(2)there are no alternatives to such capability or asset or capability or asset class that 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.
(d)Not later than 48 hours after the Commandant becomes aware that a major acquisition contract cannot be carried out under the terms specified in the contract, the Commandant shall provide a written notification to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives that includes—
(1)a description of the terms of the contract that cannot be met; and
(2)an assessment of whether the applicable contract officer has issued a cease and desist order to the contractor based on the breach of such terms of the contract.
1136Acquisition approval authority#
Nothing in this subchapter shall be construed as altering or diminishing in any way the statutory authority and responsibility of the Secretary of the department in which the Coast Guard is operating, or the Secretary’s designee, to—
(1)manage and administer department procurements, including procurements by department components, as required by section 701 of the Homeland Security Act of 2002 (6 U.S.C. 341); or
(2)manage department acquisition activities and act as the Acquisition Decision Authority with regard to the review or approval of a Coast Guard Level 1 or Level 2 acquisition project or program, as required by section 16 1 of the Office of Federal Procurement Policy Act (41 U.S.C. 414) and related implementing regulations and directives.
1137Contracting for major acquisitions programs#
(a)In carrying out authorities provided to the Secretary to design, construct, accept, or otherwise acquire assets and systems under section 501(d), the Secretary, acting through the Commandant or the head of an integrated program office established for a major acquisition program, may enter into contracts for a major acquisition program and 3 Polar Security Cutters in addition to those approved as part of a major acquisition program on November 1, 2019.
(b)Contracts entered into under subsection (a)—
(1)may be block buy contracts;
(2)may be incrementally funded;
(3)may include combined purchases, also known as economic order quantity purchases, of—
(A)materials and components; and
(B)long lead time materials; and
(4)as provided in section 3501 of title 10, may be multiyear contracts.
(c)Any contract entered into under subsection (a) shall provide that any obligation of the United States to make a payment under the contract is subject to the availability of amounts specifically provided in advance for that purpose in subsequent appropriations Acts.
1138Service life extension programs#
(a)Requirements for a Level 1 or Level 2 acquisition project or program under sections 1131 through 1134 shall not apply to an acquisition by the Coast Guard that is a service life extension program.
(b)In this section, the term “service life extension program” means a capital investment that is solely intended to extend the service life and address obsolescence of components or systems of a particular capability or asset.
1139Consideration of life-cycle cost estimates for acquisition and procurement#
In carrying out the acquisition and procurement of vessels and aircraft, the Secretary of the department in which the Coast Guard is operating, acting through the Commandant, shall consider the life-cycle cost estimates of vessels and aircraft, as applicable, during the design and evaluation processes to the maximum extent practicable.
1140Contracts that provide best value for taxpayer#
(a)In carrying out a Level 1 or Level 2 acquisition project or program under this subchapter, the Commandant may publicly announce all construction, design, and engineering requirements and negotiate contracts for construction, design, and engineering services on the basis of demonstrated competence and qualification for the type of professional services required and at fair and reasonable prices.
(b)The following procedures may apply to the procurement of Level 1 or Level 2 acquisition project or program under this subchapter:
(1)The Commandant shall require prospective contractors to submit a statement of qualifications and performance data.
(2)For each proposed project, the Commandant shall—
(A)evaluate statements of qualifications and performance submitted by firms regarding the proposed project; and
(B)conduct discussions with firms to consider anticipated concepts and compare alternative methods for furnishing services.
(3)From the firms with which discussions have been conducted under paragraph (2)(B), the Commandant shall select, in order of preference, that the Commandant considers most highly qualified to provide the services required, based on criteria established and published by the Commandant.
(c)
(1)The Commandant shall negotiate 1 or more contracts for construction, design, and engineering services under this section at compensation which the Commandant determines is fair and reasonable to the Federal Government.
(2)In determining fair and reasonable compensation, the Commandant shall consider the scope, complexity, professional nature, and estimated value of the services to be rendered.
(3)The Commandant shall attempt to negotiate a contract or contracts with the most highly qualified firm or firms selected under subsection (b).
(4)If the Commandant is unable to negotiate a satisfactory contract or contracts with the firm or firms under paragraph (3), the Commandant shall formally terminate negotiations with such firm or firms and undertake negotiations with the next most qualified of the selected firms, continuing the process until an agreement is reached.
(5)If the Commandant is unable to negotiate a satisfactory contract or contracts with any of the selected firms, the Commandant shall select additional firms in order of competence and qualification and continue negotiations in accordance with this section until 1 or more agreements are reached.
III · Procurement
1151Restriction on acquisition, procurement, or construction of vessels in foreign shipyards#
(a)Except as provided in subsection (b), the Commandant may not lease, charter, or otherwise procure a vessel which contains a major component of the hull or superstructure constructed in a foreign shipyard.
(b)
(1)The President may authorize exceptions to the prohibition in subsection (a) when the President determines that it is in the national security interest of the United States to do so.
(2)The President shall transmit notice to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate of any such determination made by the President under paragraph (1), and no contract may be awarded pursuant to the exception authorized until the end of the 30-day period beginning on the date the notice of such determination is received by such committees of Congress.
(3)The notice required under paragraph (2) shall include a written explanation of the national security interest and a detailed summary of market research demonstrating the lack of availability of United States shipyards to meet the Coast Guard requirements consistent with national security interest.
1152Advance procurement funding#
(a)With respect to any Coast Guard vessel for which amounts are appropriated and any amounts otherwise made available for vessels for the Coast Guard in any fiscal year, the Commandant may enter into a contract or place an order, in advance of a contract or order for construction of a vessel, for—
(1)materials, parts, components, and labor for the vessel;
(2)the advance construction of parts or components for the vessel;
(3)protection and storage of materials, parts, or components for the vessel; and
(4)production planning, design, and other related support services that reduce the overall procurement lead time of the vessel.
(b)In entering into contracts and placing orders under subsection (a), the Commandant may give priority to persons that manufacture materials, parts, and components in the United States.
1153Prohibition on overhaul, repair, and maintenance of Coast Guard vessels in foreign shipyards#
A Coast Guard vessel the home port of which is in the United States or Guam may not be overhauled, repaired, or maintained in a shipyard outside the United States or Guam, other than in the case of voyage repairs.
1154Procurement of buoy chain#
(a)Except as provided in subsection (b), the Coast Guard may not procure buoy chain—
(1)that is not manufactured in the United States; or
(2)substantially all of the components of which are not produced or manufactured in the United States.
(b)The Coast Guard may procure buoy chain that is not manufactured in the United States if the Secretary determines that—
(1)the price of buoy chain manufactured in the United States is unreasonable; or
(2)emergency circumstances exist.
1155Contract termination#
(a)
(1)Before terminating a procurement or acquisition contract with a total value of more than $1,000,000, the Commandant of the Coast Guard shall notify each vendor under such contract and require the vendor to maintain all work product related to the contract until the earlier of—
(A)not less than 1 year after the date of the notification; or
(B)the date the Commandant notifies the vendor that maintenance of such work product is no longer required.
(b)In this section the term “work product”—
(1)means tangible and intangible items and information produced or possessed as a result of a contract referred to in subsection (a); and
(2)includes—
(A)any completed end items;
(B)any uncompleted end items; and
(C)any property in the contractor’s possession in which the United States Government has an interest.
(c)A vendor that fails to maintain work product as required under subsection (a) is liable to the United States for a civil penalty of not more than $25,000 for each day on which such work product is unavailable.
(d)
(1)Except as provided in paragraph (2), not later than 45 days after the end of each fiscal year the Commandant of the Coast Guard shall provide to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report detailing—
(A)all Coast Guard contracts with a total value of more than $1,000,000 that were terminated in the fiscal year;
(B)all vendors who were notified under subsection (a)(1) in the fiscal year, and the date of such notification;
(C)all criminal, administrative, and other investigations regarding any contract with a total value of more than $1,000,000 that were initiated by the Coast Guard in the fiscal year;
(D)all criminal, administrative, and other investigations regarding contracts with a total value of more than $1,000,000 that were completed by the Coast Guard in the fiscal year; and
(E)an estimate of costs incurred by the Coast Guard, including contract line items and termination costs, as a result of the requirements of this section.
(2)The Commandant is not required to provide a report under paragraph (1) for any fiscal year for which there is no responsive information as described in subparagraphs (A) through (E) of paragraph (1).
1156Limitation on unmanned aircraft systems#
(a)During any fiscal year for which funds are appropriated for the design or construction of an Offshore Patrol Cutter, the Commandant—
(1)may not award a contract for design of an unmanned aircraft system for use by the Coast Guard; and
(2)may lease, acquire, or acquire the services of an unmanned aircraft system only if such system—
(A)has been part of a program of record of, procured by, or used by a Federal entity (or funds for research, development, test, and evaluation have been received from a Federal entity with regard to such system) before the date on which the Commandant leases, acquires, or acquires the services of the system; and
(B)is leased, acquired, or utilized by the Commandant through an agreement with a Federal entity, unless such an agreement is not practicable or would be less cost-effective than an independent contract action by the Coast Guard.
(b)Subsection (a)(2) does not apply to small unmanned aircraft.
(c)In this section, the terms “small unmanned aircraft” and “unmanned aircraft system” have the meanings given those terms in section 44801 of title 49.
1157Extraordinary relief#
(a)With respect to any prime contracting entity receiving extraordinary relief pursuant to the Act entitled “An Act to authorize the making, amendment, and modification of contracts to facilitate the national defense”, approved August 28, 1958 (Public Law 85–804; 50 U.S.C. 1432 et seq.) for a major acquisition, the Secretary shall not consider any further request by the prime contracting entity for extraordinary relief under such Act for such major acquisition.
(b)The limitation under subsection (a) shall not apply to subcontractors of a prime contracting entity.
(c)Not less frequently than quarterly during each fiscal year in which extraordinary relief is approved or provided to an entity under the Act referred to in subsection (a) for the acquisition of Offshore Patrol Cutters, the Commandant shall provide 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 that describes in detail such relief and the compliance of the entity with the oversight measures required as a condition of receiving such relief.
1158Authority to enter into transactions other than contracts and grants to procure cost-effective, advanced technology for mission-critical needs#
(a)Subject to subsections (b) and (c), the Commandant may enter into transactions (other than contracts, cooperative agreements, and grants) to operate, test, and acquire cost-effective technology for the purpose of meeting the mission needs of the Coast Guard.
(b)Operation, testing, and acquisition of technologies under subsection (a) shall be—
(1)carried out in accordance with Coast Guard policies and guidance; and
(2)consistent with the operational requirements of the Coast Guard.
(c)The Commandant may not enter into a transaction under subsection (a) with respect to a technology that—
(1)does not comply with the cybersecurity standards of the Coast Guard; or
(2)is sourced from an entity domiciled in the People’s Republic of China, unless the Commandant determines that the prototype or procurement of such a technology is for the purpose of—
(A)counter-UAS or surrogate testing; or
(B)intelligence, electronic warfare, and information warfare, testing, and analysis.
(d)The Commandant shall ensure that management, technical, and contracting personnel of the Coast Guard involved in the award or administration of transactions under this section are provided adequate education and training with respect to the authority under this section.
(e)The Commandant shall prescribe regulations as necessary to carry out this section.
(f)In this section, the term “counter-UAS” has the meaning given such term in section 44801 of title 49.
1159Floating drydock for United States Coast Guard Yard#
(a)Except as provided in subsection (b), the Commandant, using funds appropriated pursuant to section 1181, may not acquire, procure, or construct a floating dry dock for the Coast Guard Yard.
(b)Notwithstanding subsection (a) of this section and section 1105(a), the Commandant may—
(1)provide for an entity other than the Coast Guard to contract for the acquisition, procurement, or construction of a floating drydock by contract, purchase, or other agreement;
(2)construct a floating drydock at the Coast Guard Yard; or
(3)acquire or procure a commercially available floating drydock.
(c)To the extent practicable, a floating drydock acquired, procured, or constructed under this section shall reflect commercial design standards and commercial construction practices that are consistent with the best interests of the Federal Government.
(d)Any floating drydock acquired, procured, or constructed under subsection (b) shall be berthed at the Coast Guard Yard in Baltimore, Maryland, when lifting or maintaining vessels.
(e)In this section, the term “floating drydock” means equipment that is—
(1)constructed in the United States; and
(2)capable of meeting the lifting and maintenance requirements of an Offshore Patrol Cutter or a National Security Cutter.
Subchapter IV · Definitions
1171Definitions#
In this chapter:
(1)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)The term “Chief Acquisition Officer” means the officer appointed under section 308 of this title.
(3)The term “customer of a major acquisition program” means the operating field unit of the Coast Guard that will field the system or systems acquired under a major acquisition program.
(4)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.
(5)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 $300,000,000, but greater than $100,000,000.
(6)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.
(7)The term “major acquisition program” means an ongoing acquisition undertaken by the Coast Guard with a life-cycle cost estimate greater than or equal to $300,000,000.
(8)The term “project or program manager” means an individual designated—
(A)to develop, produce, and deploy a new asset to meet identified operational requirements; and
(B)to manage cost, schedule, and performance of the acquisition, project, or program.
(9)The term “safety concern” means any hazard associated with a capability or asset or a subsystem 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 subsystem or any hazard associated with the capability, asset, or subsystem that is likely to cause major damage to the capability, asset, or subsystem during the course of its normal operation by a typical Coast Guard user.
(10)The term “developmental test and evaluation” means—
(A)the testing of a capability or asset and the subsystems 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.
(11)The term “operational test and evaluation” means—
(A)the testing of a capability or asset and the subsystems 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 subsystems for use by typical Coast Guard users to conduct those missions for which the capability or asset and subsystems are intended to be used; and
(B)the evaluation of the results of such testing.
Subchapter I · General provisions
1101Acquisition directorate#
(a)The Commandant shall establish an acquisition directorate to provide guidance and oversight for the implementation and management of all Coast Guard acquisition processes, programs, and projects.
(b)The mission of the acquisition directorate is—
(1)to acquire and deliver assets and systems that increase operational readiness, enhance mission performance, and create a safe working environment;
(2)to assist in the development of a workforce that is trained and qualified to further the Coast Guard’s missions and deliver the best-value products and services to the Nation; and
(3)to meet the needs of customers of major acquisition programs in the most cost-effective manner practicable.
1102Improvements in Coast Guard acquisition management#
(a)
(1)An individual may not be assigned as the project or program manager for a Level 1 acquisition unless the individual holds a Level III acquisition certification as a program manager.
(2)An individual may not be assigned as the project or program manager for a Level 2 acquisition unless the individual holds a Level II acquisition certification as a program manager.
(b)
(1)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)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)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)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.
(c)
(1)The Commandant shall establish a management information system capability to improve acquisition workforce management and reporting.
(2)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.
(d)The Commandant shall ensure that no requirement or preference for officers or members of the Coast Guard is used in the consideration of individuals for positions in the acquisition workforce.
(e)
(1)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)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.
1103Role of Vice Commandant in major acquisition programs#
The Vice Commandant—
(1)shall represent the customer of a major acquisition program with regard to trade-offs made among cost, schedule, technical feasibility, and performance with respect to such program; and
(2)shall advise the Commandant in decisions regarding the balancing of resources against priorities, and associated trade-offs referred to in paragraph (1), on behalf of the customer of a major acquisition program.
1104Recognition of Coast Guard personnel for excellence in acquisition#
(a)The Commandant shall maintain 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 project or program.
(b)The program shall include—
(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; and
(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)As part of the program required by subsection (a), the Commandant, subject to the availability of appropriations, may award to any civilian employee 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.
1105Prohibition on use of lead systems integrators#
(a)
(1)The Commandant may not use a private sector entity as a lead systems integrator.
(2)The Commandant shall use full and open competition for any acquisition contract unless otherwise excepted in accordance with Federal acquisition laws and regulations promulgated under those laws, including the Federal Acquisition Regulation.
(3)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)Neither an entity performing lead systems integrator functions for a Coast Guard acquisition nor a Tier 1 subcontractor for any acquisition 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 an entity performing lead systems integrator functions or a subcontractor through full and open competition;
(3)the procurement was awarded by a subcontractor through a process over which the entity performing lead systems integrator functions 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.
(c)In this section, the term “lead systems integrator” has the meaning given such term in section 805(c) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163).
1106Required contract terms#
(a)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 or more years and with a total acquisition cost that is equal to or exceeds $10,000,000—
(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)provides 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)
(1)The Commandant shall ensure that any contract awarded or delivery order or task order issued by the Coast Guard does not include any provision allowing for equitable adjustment that is not consistent with the Federal Acquisition Regulations.
(2)A contract, contract modification, or award term extending a contract with a lead systems integrator—
(A)may not include any minimum requirements for the purchase of a given or determinable number of specific capabilities or assets; and
(B)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.
(c)Integrated product teams, and all teams that oversee integrated product teams, shall be chaired by officers, members, or employees of the Coast Guard.
(d)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 308 of this title.
1107Extension of major acquisition program contracts#
(a)Notwithstanding section 1105(a)(2) of this title and section 2304 1 of title 10, and subject to subsections (b) and (c) of this section, the Secretary may acquire additional units procured under a Coast Guard major acquisition program contract, by extension of such contract without competition, if the Director of the Cost Analysis Division of the Department of Homeland Security determines that the costs that would be saved through award of a new contract in accordance with such sections would not exceed the costs of such an award.
(b)The number of additional units acquired under a contract extension under this section may not exceed the number of additional units for which such determination is made.
(c)The Director of the Cost Analysis Division of the Department of Homeland Security shall, at the request of the Secretary, determine for purposes of this section—
(1)the costs that would be saved through award of a new major acquisition program contract in accordance with section 1105(a)(2) for the acquisition of a number of additional units specified by the Secretary; and
(2)the costs of such award, including the costs that would be incurred due to acquisition schedule delays and asset design changes associated with such award.
(d)A contract may be extended under this section more than once.
1108Department of Defense consultation#
(a)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 assets acquired for the Coast Guard.
(b)The Commandant shall seek to maintain 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 Command, with the oversight of Coast Guard major acquisition programs. The memorandum of understanding or memorandum of agreement shall, at a minimum, provide for—
(1)the exchange of technical assistance and support that the Assistant Commandants for Acquisition, Human Resources, Engineering, and Information technology 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 Command, to facilitate the development of organic capabilities in the Coast Guard.
(c)The Chief Acquisition Officer shall adopt, to the extent practicable, procedures modeled after those used by the Navy Senior Acquisition Official to approve all technical requirements.
1109Undefinitized contractual actions#
(a)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)Any request to the Head of Contracting Activity for approval of an undefinitized contractual action shall 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)
(1)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)
(A)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)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)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);
(B)operations to prevent or respond to a transportation security incident (as defined in section 70101(6) 1 of title 46);
(C)an operation in response to an emergency that poses an unacceptable threat to human health or safety or to the marine environment; or
(D)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)This subsection does not apply to an undefinitized contractual action for the purchase of initial spares.
(d)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)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)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)In this section:
(1)
(A)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)The term “undefinitized contractual action” does not include contractual actions with respect to—
(i)foreign military sales;
(ii)purchases in an amount not in excess of the amount of the simplified acquisition threshold; or
(iii)special access programs.
(2)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.
1110Elevation of disputes to the Chief Acquisition Officer#
If, after 90 days following the elevation to the Chief Acquisition Officer of any design or other dispute regarding level 1 or level 2 acquisition, the dispute remains unresolved, 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.
1111Acquisition workforce authorities#
(a)
(1)For the purposes of section 3304 of title 5, the Commandant may—
(A)designate any category of acquisition positions within the Coast Guard as shortage category positions; and
(B)use the authorities in such section to recruit and appoint highly qualified persons directly to positions so designated.
(2)The Commandant shall include in reports under section 1102 information described in such section regarding positions designated under this subsection.
(b)
(1)Except as provided in paragraph (2), if an annuitant receiving an annuity from the Civil Service Retirement and Disability Fund becomes employed in any category of acquisition positions designated by the Commandant under subsection (a), the annuity of the annuitant so employed shall continue. The annuitant so reemployed shall not be considered an employee for purposes of subchapter III of chapter 83 or chapter 84 of title 5.
(2)
(A)An annuitant retired under section 8336(d)(1) or 8414(b)(1)(A) of title 5, receiving an annuity from the Civil Service Retirement and Disability Fund, who becomes employed in any category of acquisition positions designated by the Commandant under subsection (a) after the date of the enactment of the Elijah E. Cummings Coast Guard Authorization Act of 2020, may elect to be subject to section 8344 or 8468 of such title (as the case may be).
(i)An election for coverage under this subsection shall be filed not later than 90 days after the Commandant takes reasonable actions to notify an employee who may file an election.
(ii)If an employee files an election under this subsection, coverage shall be effective beginning on the first day of the first applicable pay period beginning on or after the date of the filing of the election.
(B)Paragraph (1) shall apply to an individual who is eligible to file an election under subparagraph (A) and does not file a timely election under clause (i) of such subparagraph.
Subchapter V · Coast guard mission readiness
1181Special appropriations#
In addition to amounts otherwise available, there is appropriated to the Coast Guard for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, $24,593,500,000, to remain available until September 30, 2029, notwithstanding paragraphs (1) and (2) of section 1105(a) and sections 1131, 1132, 1133, and 1156, to use expedited processes to procure or acquire new operational assets and systems, to maintain existing assets and systems, to design, construct, plan, engineer, and improve necessary shore infrastructure, and to enhance operational resilience for monitoring, search and rescue, interdiction, hardening of maritime approaches, and navigational safety, of which—
(1)$1,142,500,000 is provided for procurement and acquisition of fixed-wing aircraft, equipment related to such aircraft and training simulators and program management for such aircraft, to provide for security of the maritime border;
(2)$2,283,000,000 is provided for procurement and acquisition of rotary-wing aircraft, equipment related to such aircraft and training simulators and program management for such aircraft, to provide for security of the maritime border;
(3)$266,000,000 is provided for procurement and acquisition of long-range unmanned aircraft and base stations, equipment related to such aircraft and base stations, and program management for such aircraft and base stations, to provide for security of the maritime border;
(4)$4,300,000,000 is provided for procurement of Offshore Patrol Cutters, equipment related to such cutters, and program management for such cutters, to provide operational presence and security of the maritime border and for interdiction of persons and controlled substances;
(5)$1,000,000,000 is provided for procurement of Fast Response Cutters, equipment related to such cutters, and program management for such cutters, to provide operational presence and security of the maritime border and for interdiction of persons and controlled substances;
(6)$4,300,000,000 is provided for procurement of Polar Security Cutters, equipment related to such cutters, and program management for such cutters, to ensure timely presence of the Coast Guard in the Arctic and Antarctic regions;
(7)$3,500,000,000 is provided for procurement of Arctic Security Cutters, equipment related to such cutters, and program management for such cutters, to ensure timely presence of the Coast Guard in the Arctic and Antarctic regions;
(8)$816,000,000 is provided for procurement of light and medium icebreaking cutters, and equipment relating to such cutters, from shipyards that have demonstrated success in the cost-effective application of design standards and in delivering, on schedule and within budget, vessels of a size and tonnage that are not less than the size and tonnage of the cutters described in this paragraph, and for program management for such cutters, to expand domestic icebreaking capacity;
(9)$162,000,000 is provided for procurement of Waterways Commerce Cutters, equipment related to such cutters, and program management for such cutters, to support aids to navigation, waterways and coastal security, and search and rescue in inland waterways;
(10)$4,379,000,000 is provided for design, planning, engineering, recapitalization, construction, rebuilding, and improvement of, and program management for, shore facilities, of which—
(A)$425,000,000 is provided for design, planning, engineering, construction of, and program management for—
(i)the enlisted boot camp barracks and multi-use training center; and
(ii)other related facilities at the enlisted boot camp;
(B)$500,000,000 is provided for—
(i)construction, improvement, and dredging at the Coast Guard Yard; and
(ii)acquisition of a floating drydock for the Coast Guard Yard;
(C)not more than $2,729,500,000 is provided for homeports and hangars for cutters and aircraft for which funds are appropriated under paragraph (1) through (9); and
(D)$300,000,000 is provided for homeporting of the existing polar icebreaker commissioned into service in 2025;
(11)$2,200,000,000 is provided for aviation, cutter, and shore facility depot maintenance and maintenance of command, control, communication, computer, and cyber assets;
(12)$170,000,000 is provided for improving maritime domain awareness on the maritime border, at United States ports, at land-based facilities and in the cyber domain; and
(13)$75,000,000 is provided to contract the services of, acquire, or procure autonomous maritime systems.
United States Government work; public domain under 17 U.S.C. § 105.