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Full Text of this Amendment

SA 89. Ms. CANTWELL submitted an amendment intended to be proposed by her to the bill S. 223, to modernize the air traffic control system, improve the safety; reliability, and availability of transportation by air in the United States, provide modernization of the air traffic control system, reauthorize the Federal Aviation Administration, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place insert the following:

SEC. __. ADS-B OVERSIGHT.
(a) Cost Benefit Analysis.--
(1) In general.--The Administrator of the Federal Aviation Administration shall contract with an independent third party to conduct an updated cost benefit analysis of acquisition approaches for the Automatic Dependent Surveillance-Broadcast program (referred to in this section as the ADS-B program).
(2) Parameters.--The analysis must include a comparison of the service-based contract approach with more traditional acquisition approaches, both for the entire contract and for each individual phase of the program.
(3) Independence.--The independent third party selected to conduct the analysis may not have a financial interest in the ADS-B program, and may not have any significant financial ties with either the contractor or subcontractors involved with the program.
(4) Review by dotig.--The Department of Transportation Inspector General shall conduct a review of the final Cost Benefit Analysis.
(5) Report.--The final analysis and accompanying Inspector General review shall be provided to the appropriate Congressional Committees.
(6) Restrictions.--Until the requirements of this subsection have been fulfilled, the Administrator may not exercise any additional contract options for the ADS-B Program. This restriction shall not apply to execution of a specific contract option if the Administrator certifies to Congress in writing and with explanation that a delay in exercising the option would be harmful and not in the best interest of the Federal government.
(b) Performance and Financial Audit.--Within 270 days after the date of enactment of this Act, the Department of Transportation Inspector General shall conduct a performance and financial audit of the ADS-B program and issue a report on the audit's findings. At a minimum, the audit and report shall--
(1) identify all cost overruns that have occurred or are highly likely to occur;
(2) review the factors used by the Administration to measure contractor performance;
(3) identify all incentive fees, award fees, and other financial performance rewards that have been awarded to the contractor, including the specific performance merits upon which those financial rewards were granted;
(4) identify all requirements changes, contract modifications, and change orders, including the costs of such changes and the extent to which each change was subject to review to identify, analyze, and document the associated needs, risks, costs, and benefits; and
(5) make specific recommendations that would allow the Administration to more accurately track both capital and operating costs and ensure timely and accurate disclosure of cost overruns.
(c) Acquisition Management and Oversight.--
(1) Plan.--The Administrator shall develop and submit to Congress an acquisition management and oversight plan for the ADS-B program. The plan shall--
(A) contain an assessment of current Administration acquisition, management, oversight, and contracting resources and capabilities devoted to the ADS-B program;
(B) identify actions that the Administration will take to improve its acquisition management and oversight of the ADS-B program;
(C) include staffing predictions, human capital needs, and training needs;
(D) identify specific processes and procedures for developing clear contract performance requirements and analyzing, approving, and managing requirements changes, contract modifications, and change orders; and
(E) address specifically the question of whether the Administration can better leverage acquisitions oversight and management expertise from other agencies within the Federal government.
(2) DOTIG review.--The Department of Transportation's Inspector General shall conduct a review of the plan submitted under paragraph (1).
(3) Restrictions.--Until the requirements of paragraph (1) have been fulfilled, the Administrator shall not execute any additional contracts, contract changes, requirements changes, task orders, or work orders for the ADS-B Program whose value exceeds $1,000,000. This restriction shall not apply to a specific contract, contract change, requirements change, task order, or work order if the Administrator certifies to Congress in writing and with explanation that a delay in execution of
that specific action would be harmful and not in the best interest of the Federal government.
(4) Technical requirements.--The Administration shall maintain the technical authority to establish, approve, and maintain technical requirements for the ADS-B program.
(5) Self-certification prohibited.--All certifications for capability and performance of ADS-B systems shall be conducted by the Administration. Self-certification by a contractor or subcontractor is not allowed.
(d) Contract Review.--Within 270 days after the date of enactment of this Act, the Comptroller General shall conduct an audit and review of the ADS-B contracts, and issue a report to Congress which, at a minimum, identifies and analyzes--
(1) any terms and structural features of the contract that may put the Federal government at a financial, legal, technical, or negotiating disadvantage, both during contract execution and throughout the life-cycle of the ADS-B system;
(2) specific risks and management challenges that can be expected to arise from specific contract terms or from the overall contract and acquisition structure;
(3) unclear performance and contract requirements that may increase costs, risks, and the probability of inadequate system performance;
(4) the procedures that Administration and the contractor used to write the contract, including who was tasked with both writing and reviewing contract language;
(5) contract terms or structures that may prevent or discourage financial transparency;
(6) benefits, risks, management challenges, and potential conflicts of interest associated with allowing the contractor to sell value added services, including recommendations for how to protect the public interest under such an arrangement;
(7) risks associated with utilizing a performance-based contract for the ADS-B program; and
(8) the short and long term advantages, disadvantages, and risks of--
(A) utilizing a cost plus incentive fee structure for development of the ADS-B ground system; and
(B) Ownership of the ground systems by the contractor instead of the Administration.


(As printed in the Congressional Record for the Senate on Feb 15, 2011.)