Title 14, Coast GuardRelease 119-110

§1105 Prohibition on Use of Lead Systems Integrators

Title 14 › SUBTITLE I — ESTABLISHMENT, POWERS, DUTIES, AND ADMINISTRATION › CHAPTER 11 — ACQUISITIONS › SUBCHAPTER I — GENERAL PROVISIONS › § 1105

Last updated Sep 22, 2026|Official source

Summary

The Commandant may not hire a private company to act as a lead systems integrator. The Commandant must use full and open competition for Coast Guard acquisition contracts, unless a federal acquisition law or the Federal Acquisition Regulation allows an exception. This does not change the powers under the Small Business Act (15 U.S.C. 631 et seq.). A lead systems integrator or a Tier 1 subcontractor cannot have a financial interest in lower‑tier subcontractors unless those subcontracts were chosen or awarded through full and open competition, awarded in a process the integrator did not control, or the Commandant determines the award followed federal acquisition laws and the FAR. "Lead systems integrator" is defined in section 805(c) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109–163).

Full Legal Text

Title 14, §1105

Coast Guard, Source: USLM XML via OLRC

(a)In General.—
(1)Use of lead systems integrator.— (2) Full and open competition.—
The Commandant may not use a private sector entity as a lead systems integrator.
(3)No effect on small business act.—
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)Limitation on Financial Interest in Subcontractors.—
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)Lead Systems Integrator Defined.—
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).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Small Business Act, referred to in subsec. (a)(3), is Pub. L. 85–536, § 2(1 et seq.), July 18, 1958, 72 Stat. 384, which is classified generally to chapter 14A (§ 631 et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see

Short Title

note set out under section 631 of Title 15 and Tables. section 805(c) of the National Defense Authorization Act for Fiscal Year 2006, referred to in subsec. (c), is section 805(c) of Pub. L. 109–163, div. A, title VIII, Jan. 6, 2006, 119 Stat. 3372, which is not classified to the Code.

Amendments

2025—Subsec. (c). Pub. L. 119–60 added subsec. (c). 2018—Pub. L. 115–282, § 108(b), renumbered section 564 of this title as this section. Subsec. (c). Pub. L. 115–282, § 304(d), struck out subsec. (c) which related to acquisition of unmanned aerial systems. 2016—Subsec. (c). Pub. L. 114–328 added subsec. (c). 2012—Pub. L. 112–213 amended section generally. Prior to amendment, section related to prohibition on use of lead systems integrators and provided for certain exceptions to such prohibition. 2010—Pub. L. 111–330 amended Pub. L. 111–281, § 402(a), which enacted this section.

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 Amendment Pub. L. 111–330, § 1, Dec. 22, 2010, 124 Stat. 3569, provided that the amendment made by section 1(4) is effective with the enactment of Pub. L. 111–281.

Reference

Citations & Metadata

Citation

14 U.S.C. § 1105

Title 14, Coast Guard

Last Updated

Sep 22, 2026

Release point: 119-110