ACQUISITION IMPROVEMENTS.

SEC. 7212. ACQUISITION IMPROVEMENTS. (a) In General.—Subchapter II of chapter 11 of title 14, United States Code, is amended by adding at the end the following: “SEC. 1138. [14 U.S.C. 1138] Service life extension programs “(a) In General.—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) Service Life Extension Program Defined.—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. “SEC. 1139. [14 U.S.C. 1139] Consideration 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. “SEC. 1140. [14 U.S.C. 1140] Contracts that provide best value for taxpayer “(a) In General.—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) Selection Procedure.—The following procedures may apply to the procurement of Level 1 or Level 2 acquisition project or program under this subchapter: “(1) Statements of qualification and performance.—The Commandant shall require prospective contractors to submit a statement of qualifications and performance data. “(2) Evaluation.—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) Selection.—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) Negotiation of Contract.— “(1) In general.—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) Fair and reasonable compensation.—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) Negotiation.—The Commandant shall attempt to negotiate a contract or contracts with the most highly qualified firm or firms selected under subsection (b). “(4) Further negotiation.—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) Additional firms.—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.” . (b) Clerical Amendment.—The analysis for chapter 11 of title 14, United States Code, is amended by inserting after the item relating to section 1137 the following: “1138. Service life extension programs. “1139. Consideration of life-cycle cost estimates for acquisition and procurement. “1140. Contracts that provide best value for taxpayer.” .