Pub. L. 110-28, tit. VI, ch. 4, sec. 6402

Sec. 6402. (a) In General.—Any contract, subcontract, task or delivery order described in subsection (b) shall contain the following:(1) A requirement for a technical review of all designs, design changes, and engineering change proposals, and a requirement to specifically address all engineering concerns identified in the review before the obligation of further funds may occur.(2) A requirement that the Coast Guard maintain technical warrant holder authority, or the equivalent, for major assets. (3) A requirement that no procurement subject to subsection (b) for lead asset production or the implementation of a major design change shall be entered into unless an independent third party with no financial interest in the development, construction, or modification of any component of the asset, selected by the Commandant, determines that such action is advisable.(4) A requirement for independent life-cycle cost estimates of lead assets and major design and engineering changes.(5) A requirement for the measurement of contractor and subcontractor performance based on the status of all work performed. For contracts under the Integrated Deepwater Systems program, such requirement shall include a provision that links award fees to successful acquisition outcomes (which shall be defined in terms of cost, schedule, and performance).(6) A requirement that the Commandant of the Coast Guard assign an appropriate officer or employee of the Coast Guard to act as chair of each integrated product team and 121 STAT. 174 higher-level team assigned to the oversight of each integrated product team.(7) A requirement that the Commandant of the Coast Guard may not award or issue any contract, task or delivery order, letter contract modification thereof, or other similar contract, for the acquisition or modification of an asset under a procurement subject to subsection (b) unless the Coast Guard and the contractor concerned have formally agreed to all terms and conditions or the head of contracting activity for the Coast Guard determines that a compelling need exists for the award or issue of such instrument. (b) Contracts, Subcontracts, Task and Delivery Orders Covered.—Subsection (a) applies to—(1) any major procurement contract, first-tier subcontract, delivery or task order entered into by the Coast Guard;(2) any first-tier subcontract entered into under such a contract; and(3) any task or delivery order issued pursuant to such a contract or subcontract.(c) Expenditure of Deepwater Funds.—Of the funds available for the Integrated Deepwater Systems program, $650,000,000 may not be obligated until the Committees on Appropriations of the Senate and the House of Representatives receive an expenditure plan directly from the Coast Guard that—(1) defines activities, milestones, yearly costs, and life-cycle costs for each procurement of a major asset;(2) identifies life-cycle staffing and training needs of Coast Guard project managers and of procurement and contract staff;(3) identifies competition to be conducted in each procurement;(4) describes procurement plans that do not rely on a single industry entity or contract;(5) contains very limited indefinite delivery/indefinite quantity contracts and explains the need for any indefinite delivery/indefinite quantity contracts;(6) complies with all applicable acquisition rules, requirements, and guidelines, and incorporates the best systems acquisition management practices of the Federal Government;(7) complies with the capital planning and investment control requirements established by the Office of Management and Budget, including circular A–11, part 7;(8) includes a certification by the head of contracting activity for the Coast Guard and the Chief Procurement Officer of the Department of Homeland Security that the Coast Guard has established sufficient controls and procedures and has sufficient staffing to comply with all contracting requirements, and that any conflicts of interest have been sufficiently addressed;(9) includes a description of the process used to act upon deviations from the contractually specified performance requirements and clearly explains the actions taken on such deviations; (10) includes a certification that the Assistant Commandant of the Coast Guard for Engineering and Logistics is designated as the technical authority for all engineering, design, and logistics decisions pertaining to the Integrated Deepwater Systems program; and(11) identifies progress in complying with the requirements of subsection (a).121 STAT. 175(d) Reports.—(1) Not later than 30 days after the date of enactment of this Act, the Commandant of the Coast Guard shall submit to the Committees on Appropriations of the Senate and the House of Representatives; the Committee on Commerce, Science and Transportation of the Senate; and the Committee on Transportation and Infrastructure of the House of Representatives: (i) a report on the resources (including training, staff, and expertise) required by the Coast Guard to provide appropriate management and oversight of the Integrated Deepwater Systems program; and (ii) a report on how the Coast Guard will utilize full and open competition for any contract that provides for the acquisition or modification of assets under, or in support of, the Integrated Deepwater Systems program, entered into after the date of enactment of this Act.(2) Within 30 days following the submission of the expenditure plan required under subsection (c), the Government Accountability Office shall review the plan and brief the Committees on Appropriations of the Senate and the House of Representatives on its findings.